Multi- Professional and Multi- agency working Essay

â€Å"Multi-agency working brings together practitioners from different sectors and professions to provide an integrated way of working to support children, young people and families. † (DfES, 2001) In this essay my aim is to demonstrate an understanding of the collaborative skills required for effective multi professional practice. I will include feedback following a group presentation that I took part in and give my personal reflections of the process. I will then identify the issues and barriers in effecting multi professional practice linking to theory and legislation in Special Educational Needs (SEN) The Every Child Matters, (2004) agenda promotes effective multi- agency working and sharing of information between agencies, and Lord Laming stated that â€Å"effective support for children and families cannot be achieved by a single agency acting alone. It depends on a number of agencies working well together. † Multi- agency working is the involvement of more than one agency, and a team may consist of practitioners from several professional backgrounds who have different areas of expertise. Some of the practitioners may include health, education and social services. Some of these practitioners and professionals are involved in a child’s life are usually at least the child’s parents and the class teacher. This could then expand out to involve a speech therapist, a doctor, a social worker, a nurse and/or a psychologist. All of these people have an interest in helping to support the child and therefore all need to collaborate together for the benefit of the individual children. Speech and language therapists (SLT) are usually provided by the health services and provide formal assessment for pupils experiencing language and communication difficulties. They implement language and communication programmes with individuals and groups. They offer advice and support and assist with target setting and strategies According to Tassoni, (2003, p79) â€Å"the type of support that a child receives will depend on his or her need, but usually exercises and strategies are shared with everyone involved in the child’s care and education, especially parents† In my current role as a Speech and language therapy Assistant, (SLTA) I regularly liaise with the SLT and help to set some of the ndividual targets and provide appropriate resources to help the children to achieve their targets as well as implement programs set. As part of my role of a SLTA I work as part of a communication and learning team and have worked alongside many multi professionals, class teachers, learning support assistants, (LSA) in the school and a social worker. In the office in which I am based, each team member has their own individual skills and expertise that create a multi-skilled approach to support other team members, members of staff, students, parents and other professionals. The team consists of Teachers and Specialist Support Staff skilled in specific areas, SLT, an Occupational Therapists (OT) Early Years support worker and a Parent Support Advisor. As highlighted by the College of Occupational Therapists, (2011) Collaborative working within a multi-professional team can be the â€Å"most effective and efficient way to combine the skills of many professionals for the benefit of service users. †

How Current Issues Affect Our Economy Essay

It has been a common notion that current issues affect a country’s economy. Particularly, in the U. S. , issues such as election, war, and immigration are often pointed out to cause the economy to rise or fall. Also, there is a speculation tying up the economy with the prices of stocks, in that the rise in the prices indicates an improving economy and vice versa. Although existing studies have not established a sure claim that current issues truly affect the economy (Socioeconomic Foundation Website), we can point out reasons how such issues can make the economy rise or fall. First, let us consider how elections can improve or pull down our economy. As what we may hear during election periods, the success of our economy is somehow dependent on whoever wins. On the one hand, if the incumbent government stays in power, the economy, with all its budget appropriations, would be sustained. Therefore, there is a tendency that our economy could maintain its present status and there would be no fear of decline. On the other hand, if a new regime takes over, a new set of budget will be proposed, and there could be an economic recession, which could eventually lead to some losses. In the same way, war can affect the economy in two ways. It can have positive implications, as well as negative ones. On the positive side, involvement in war could make a country more powerful and prominent. In addition, it promises future alliances, which assure us of additional areas for investment. As such, the country’s power and territory widens, and this leads to developing trust of other nations on the country’s stability. This development of trust to the U. S. power could later mean more investments and alliances. On the negative side, involvement in war could also imply a lot of drawbacks. For instance, recipient countries such as Iraq and Afghanistan receive a funding of USD 1. 3 billion for their infrastructure, community action, and other local projects. As such, involvement in war could lead to economic slur or upsurge. Aside from election and involvement in war, immigration is another issue affecting the US economy. As Croddy & Hayes (2007) note, the issue of illegal or unauthorized immigration has existed for the last thirty years. Illegal immigrants include all people who have been overstaying in the country, and those without proper documentation. While some of them may have jobs to support themselves and their family, a lot of these people do not have a livelihood and literally rely on what the US government can provide. Specifically, the government spends for their children’s education in public schools, medical benefits, and other projects that they benefit from such as infrastructure, telecommunication, etc. Similarly, these people contribute in depleting the country’s natural resources, and utilize energy, water, and air. Another issue that may be affecting the U. S. economy is the problem with HIV victims. As the fight against AIDS continues, the government keeps on spending a lot of money to discover the cure for the said disease. This also implies that as the cure for AIDS has not been found, the government will continue its effort to allocate some of its budget to inventions and researches. References Croddy, Marshall and Hayes, Bill.â€Å"Current Issues of Immigration, 2007. † 2007. Retrieved 2 February 2008 . â€Å"Key Aspects of Socionomic Theory. † Socioeconomic Foundation. Retrieved 5 February 2008 . Lancaster, Carol. â€Å"U. S. Foreign Economic Aid in 2008: Winners and Losers in President Bush’s Proposed Budget. † Retrieved 4 February 2008 .

Couseling theories Essay Example | Topics and Well Written Essays - 2500 words

Couseling theories - Essay Example The Adlerian approach, on the other hand, stresses on social context and lifestyle of human beings that can help them cope with their problems. It also deals with the significance of early experiences and family constellations in the life of an individual. The Gestalt approach emphasizes on the improvement of the whole rather than enhancing separate parts of the individual to help people cope with their problems. Similarly, it aims at incorporating feelings, cognitions, beliefs, and perceptions and past, present and future occurrences to facilitate in developing self-awareness and desired life needs. Counseling Theories Counseling is a commonly used expression, but it usually means different things to different people. Generally, counseling is explained as encompassing a counseling relationship in which an expert interacts with a person or group of people who are looking for help in dealing with problems and making changes in their lives (Corey, 2000). A number of theories usually di rect the process of counseling, assisting in the understanding of behavior and designing of intervention programs that hold promise for achieving the desired outcomes. Theories vary based on numerous aspects. A few need an active participation of the therapist, while others place more responsibility on the client. A few emphasize on transforming cognitive activity, while others emphasize on observable behavior or inner feelings. Theories also differ in where they think most of the action occurs: the present, the past or the future (Sharf, 1999). Within counseling, psychoanalytically and psychodynamically based interventions are illustrious due to focus on the significance of early experience and the role of unconscious mental functioning. In the psychoanalytical approach, individuals are mainly determined by early experiences and unconscious forces and conflicts are fundamental in the existing behavior. According to the psychoanalytic perspective, illogical forces are powerful and t he individual is motivated by sexual and aggressive impulses. Psychoanalysts postulate that early development is of great significance because later personality issues are embedded in repressed childhood conflicts. The main idea of this perspective is that regular personality development is founded on successful working out and combination of psychosexual stages of development. On the other hand, damaged personality development is due to poor resolution of certain stage (Ricu, 2003). Psychoanalysis and psychodynamic interventions are formulated to bring about transformation in an individual’s personality and character. In this process, individuals struggle to resolve unconscious clashes themselves and develop more acceptable ways of coping with their problems. Self-understanding is accomplished through analysis of childhood experiences that are restructured, understood, and explored. The understanding helps bring about changes in feelings and actions. By discovering unconscio us material through dream interpretation or other means, people can deal with different issues and problems in their lives in an improved manner (Chan, et al., 2004). As a result of psychoanalytic therapy, individuals become aware of themselves and feel more real. Furthermore, due to an improved understanding their own reactions to other people, individuals have better relationships with family, friends, and colleagues (Chan, et al., 2004). In recent years, the contributions of Alfred Adler have gained great

Beta golf Assignment Example | Topics and Well Written Essays - 750 words - 1

Beta golf - Assignment Example Beta Group’s business model focuses on finding technology that can effectively be applied to existing but not overly competitive markets. Beta’s model seems to be a hybrid of an incubator, venture capital firm and consulting firm. They find technology that may be appropriate and then look for an opportunity in the market. Once an opportunity is found they look for outside funding and build management team to run the company that will be formed with the technology. This allows them to invest limited capital while realizing significant gains from any company that is created and then either becomes profitable or has a profitable exit. Beta has a record of success with this model. The returns they generate are significantly higher than those of venture firms. Beta has streamlined the entrepreneurial process for the application of new technology to under exploited markets. In order to turn innovation into value there is often a long development process. This is why Beta has the â€Å"refrigerator† to store technologies until either they are ready for a market or a space opens up in the market that can be taken advantage of. The innovation must be placed in the proper market with the ability to grow a company around it. While there is value in the technology alone it must be able to reach the market in order to extract that value from it. This is the challenge of commercializing a technology. Entrepreneurship and business skill must be applied in order for the value of innovation to be seen. The HXL technology appears to be nearly ready to enter the market. The cost of manufacturing must be determined more specifically in order to get a final projection of the cost of fully commercializing the technology. Further development of the manufacturing process and techniques may provide significant value to licensees and be able to command a premium if the process is more mature. The best

Short essay question Example | Topics and Well Written Essays - 500 words - 1

Short question - Essay Example The underworld is believed to be the dwelling place of the earth-goddess. It is this earthly goddess that will add feministic principles and instincts to this masculine ego of the mythical hero. The hero is equally portrayed has having redemptive powers. These are the powers that he or she receives from the gods. The hero has the power to uplift the entire human race from the dismal conditions that it lives in. this is clearly a potential that can only be performed by the gods. Mortal women equally play a role in the hero myths. The heroes are often considered to be an isolated case due to their uniqueness. This isolation makes the hero to develop a close relationship with mortal women. The purpose of this relationship is to offer the hero support in domestic contentment. The myths argue that if the hero were to undertake domestic contentment, then he would be greatly swayed from his purposeful tasks. The civilization of the ancient Greek has been considered as the most brilliant in the history of the world. Most of the credit has been given to the Greece mythical heroes. The heroes often travelled afar and set up cities in the places that they went to. It is for example indicated that the western civilization was as a result of the spread of the Greek culture by the heroes. It is the divine power that the Greek heroes had that made them to easily spread the Greek culture as well as be a caviling force without resistance from people. Adrienne Mayor states that stories about the bones of the heroes were often told in many ancient cultures like China, Greece and India. He underscores that these stories were often said so as to accounts for animal fossils that the people had never seen while in their life state (Mayor, 2004). He equally indicates that the ancient Greeks believed that the bones of the heroes are the remains of giants and monsters that had been destroyed by the gods and buried deeply in the ground. The bones of the heroes had a lot of

A piece of writing which may persuade or advise a readership. (1,000 Essay

A piece of writing which may persuade or advise a readership. (1,000 words) - Essay Example Nevertheless, plastic is a major threat to our environment, which is already being ravaged by innumerable human activities. If we want our future generations to live on this planet, enjoying its resources, we have to conserve our environment, and shunning plastic is a sure step in that direction. Chemicals used to produce plastic are toxic and many of its constituents like benzene and vinyl chloride are known to be carcinogenic. Ethylene oxide and xylenes, released during its production can cause birth defects and nervous system disorders, besides weakening the immune system and causing damage to kidneys and blood. Discarded plastic waste can choke drains, providing breeding ground for disease causing organisms, and floods during heavy rains. Plastic is non biodegradable, but it degrades into smaller and smaller toxic particles in presence of light. These particles pollute soil, water and oceans, wreaking havoc in marine life and entering our systems through food chain. The Marine Conservation Society, UK has highlighted the increasing danger to marine life from plastic pollution. Discarded plastic causes hardships to about 267 marine species. Can you believe there are about 46,000 pieces of non-degradable plastic in every square mile of the ocean? According to the MCS, the plastic on UK beaches has grown by 126 percent since 1994, explaining the deaths of many seabirds, turtles, whales and seals. The ubiquitous plastic bags, seemingly harmless, are potential killers if swallowed by stray animals. When these bags enter oceans, they become harmful pieces of litter. Mistaking them for food, many marine animals and birds swallow them, and die very painfully. According to a special section in the Oct 2008 issue of Environmental Research—â€Å"A Plastic World†, pthalates used in PVC plastics can block the production of male sex hormone testosterone, bisphenol A (BPA) used in poly carbonate plastics

Personality disorder Essay Example | Topics and Well Written Essays - 1250 words

Personality disorder - Essay Example The people share and contrast their personality traits with the fellow humans, and are indentified with the group or community the patterns of which they follow in their everyday life in behavior. For instance, people categorize the individuals into benevolent and rude, and generous and selfish etc. The authors view high self-esteem as an important personality trait, which not only reflects high confident level and superior self-assessment, but also is extremely essential for obtaining successes in life (406). However, boosting over one’s abilities or having exaggerated confidence level also demonstrates low self-esteem, where one looks to be concealing his weaknesses with the help of snobbish behavior and embellishment. Similarly, admiration and acknowledgement are the factors to accelerate self-esteem to a great extent (407). Craig & Baucum are of the view that self-conception and estimation appear in children after their first birthday, and the affects of the first images o f self-discovery are long-lasting ones, which seldom perish throughout one’s lifespan (2002:228). ... (1936) submits to state that personality is assumed and estimated in the light of few prominent and unique traits and features possessed by the individuals. Personality characteristics are the entities, which produce prejudice among the individuals towards certain mental states; they also cause mental states like beliefs and desires, which in turn cause behaviors (Rosati et al., 2001:4). It is therefore some individuals appear to be introvert in nature (Coon & Mitterer, 408), and keep their views and thinking to themselves, while many people are extrovert, and frequently give vent to their ideas and opinions in the presence of others. In addition, some of the theorists are of the opinion that the individuals are motivated by observing the performance of others, which not only urge them to demonstrate the same or superior performance, but also help out in boosting up of their morale and self-esteem subsequently (Schmitt et al. 2000:1599); consequently, here appears social learning the ory that argues that all human acts are the outcome of the individuals’ observation of social establishment in which they have been brought up and have obtained socialization process. Consequently, supporters of social learning theory refute the possibility of nature theories that man enters the world carrying some specific personality features and characteristics (Coon & Mitterer, 421-22). It was Bandura to postulate that human behavior could be learned at the cognitive level through observing other people’s actions (Rogers, 2001:4); hence, people enter this world with the mind like clean slate, and learns every act by observing and imitating the others. Crime is aptly stated as learned behavior, which reflects the techniques and methodology the criminals get acquainted with by

Wk 2 disc (22&31) Essay Example | Topics and Well Written Essays - 500 words

Wk 2 disc (22) - Essay Example I agree with the Hansen et. al (2006) study because I think that the factors they found: showing respect for the clients world view, evaluating when the counselors own views, assumptions and biases are impeding the counseling process, and establishing rapport are very important in working with any group, but especially with multicultural groups (p. 70). In the study by Constantine et. al (2004), a good point was made that many institutions are not open to multiculturalism and this can cause problems. However, a counselor who is willing to be flexible and who is willing to get to know different cultures will succeed better than someone who is not. Constantine et. al also said that a multi-cultural counselor must understand cultural issues. I believe this is true because this is a way that one can relate better to a client and it develops trust. Hansen, N.D., Randazzo, K. V., Schwartz, A., Marshall, M., Kalis, D., Frazier, R., Burke, C., Kershner-Rice, K., and Norvig, G. (Nancy Downing Hansen, Katherine V. Randazzo (2006). Do we practice what we preach? An exploratory survey of multicultural psychotherapy competencies. Professional Psychology Research and Practice, 37 (1), p.

Heritage Project Essay Example for Free

Heritage Project Essay To me heritage is something that should be of vital of importance, something that has played a part in history and contributed to why I am where I am today. For heritage to be important to me, it must have had an impact on the lives of my ancestors and the choices they made as well as the things which they fought to uphold. Heritage defines who we are, with the different types of foods, buildings and ways of life between the different cultures that bring us together. The stories and memories passed on from generation to generation, bringing us together and giving us a sense of direction. It is the foundation that we are built upon and allows us to lay new grounds for the future. Debate around the public representation of Juma Masjid. Juma Masjid represents the Muslim community, being one of the most glamorous and extravagant mosques in the country people tend to take it for granted and not take into account its unique architecture and design. With the Muslim population annually increasing, space is not a problem as Juma Masjid is the most spacious Mosque in the southern hemisphere. It represents the Muslim community as it is greeted with great numbers of Muslims on the days of Eid as well as a number of tourists who make the trip into town to marvel at its beauty. Although Indian and Muslim people always having a strong bond and togetherness, they aren’t allowed into the Masjid. This is for any non- Muslim for that matter. In Islam, which has strict rules that one has to abide by and comply too. When you are a Muslim, you believe in the One and Only Allah, all other heritage and cultures are of no effect and are said to be false. There is no place for other religions in Islam, a Muslim should not become derailed from Islam and weaken his faith by giving into the western temptations and ways of life. Juma Masjid has never caused uproar or been part of anything controversial regarding its structure. Muslim people should be grateful as South African is a very understanding and accommodating place, with the government allowing Minarets to be built on Mosques. Muslims in Switzerland aren’t so lucky however, as existing Minarets stand and new ones cannot be built, the Muslim people came out saying that instead of trying to make life hard for them and drive them out of the country the Swiss government should rather ‘integrate rather than exclude†. Throughout history people have been oppressed upon, some more than others of course. Because of this people would always remember the past and the way that they were treated and try to turn the oppression around. Our divided past still has an impact on the lives we live today, with sport for instance. White people are highly regarded as cricket and rugby players while Black African people are associated with Soccer and form most part of the support system in the sport locally. We should ask ourselves, how do we sort this out? One should remember that common interests bring people together, so instead of carrying on with the old bring in the new and expose people to different environments, taking them out their comfort zones and creating a better future for our country moving forward. As much as we can say that apartheid is over, there is still the lingering after effects of stereotypes and racism in different aspects of life. Therefore, we cannot just forget about it and move on, we should learn from it and educate about it, so it does not deter this country again. The Juma Masjid. The first bit of history surrounding Juma Masjid may be only from the early 1880’s but for Islam, it was introduced a lot earlier in South Africa, most people believe it to be brought into the country in around 1667 by the Cape Malays. It wasn’t until 1863 though when Aboobaker Amod Jhaveri and Hajee Mahomed Hajee Dada arrived in Durban did Islam really take off and open up to them; the people at the time. It is accepted that they were aboard the SS Truro, one of the passenger liners that brought down labourers from India and other areas. Aboobaker Amod Jhaveri together with Hajee Mahomed Hajee Dada then purchased a plot of land in 1881 from K. Moonsamy for a sum of ? 115 with the intention of building a Masjid for the Muslim people of the Durban area. There was not much of a structure on the site, but none the less they turned this small piece into what would become the largest and most visited Masjid in the southern hemisphere in the century to come. This however still wasn’t the Masjid to be; rather it was a Jamaat Khana. A Jamaat Khana is simple structure in which people could go into and perform their daily prayers. A Jamaat Khana is not even nearly big enough to accommodate the number of Musallees that a Masjid can. A Masjid is much more elaborate in terms of the architecture and minarets, domes and craftsmanship’s. It wasn’t until 1884 when the two founders had the structure rebuilt to make room for the ever growing numbers of Muslim people in the area. This was now the first Masjid ever to be built in the Natal region. This Masjid could now capacitate up to 200 Muslims. Aboobaker being a businessman and knowing the trade, went ahead and purchased land surrounding the Mosque. This proved a smart and important buy as in the following years he would pass away in India from cholera while on a business. This land that had been bought paid dividend as it was used to expand the Masjid even more. As the last surviving trustee and care taker of the Masjid, Hajee Mahomed had to take action as again space for worshippers was becoming an issue because of the influence of Aboobaker’s business transactions and dealings. It is said that he was an honest and fair man, who attracted many non-Muslims to the path of Islam by the way he went about with his dealings and mannerisms. Hajee Mahomed then acquired more land from John Stanger for a sum of ? 300 in 1889 for the Masjid to expand a little more and comfort the Muslims from. Then in 1893 the British Empire abolished slavery and the Indian population wasting no time formed the Natal Indian Congress. With the freedom now granted to people, the first minaret was built on the extensions of the Masjid; this caused a chain reaction as in the same year two shops were built alongside the Masjid providing some money for the caretaking and maintenance of the Masjid. Then in 1905 during the time in which the Masjid was in full flow, the second minaret was built together with a number of rooms, it also facilitated visitors and travellers by establishing toilets and showers for the people at the back of the Masjid. A living area was also built for the Muazzin; the Muazzin is someone who gives the call to prayer for Muslims all around, the call for prayer is called the Azaan. With the Muazzin now in place, it was about time a group of trustees took control of the Masjid and in 1916; which proved a rather important and significant time in this Masjids history. A board of trustees were elected; they included. Hajee Mahomed Dada, Moosa Hajee Cassim, Abdoola Hajee Cassim, Omar Amod, Joosab Jan Mahomed Tayob Hajee Khan Mahomed. These Muslim men made up the first batch that took the realms and pressure off Hajee Mahomed as they worked with him on continuously allowing this Masjid to flourish. These two minarets were the tallest structures in the area of Durban at the time. In 1927 it was decided that it was time to expand and rebuild Juma Masjid, this contract was given to Payne and Payne architectures. A great part of the Masjid was demolished as the second minaret was brought down as construction was completed in 1928; it was also planned that the minaret would be rebuilt. Many parts and mediums of the Masjid changed then after but the greatest and most significant took place 15 years later when the Masjid went under construction again. This time in 1943, the entire building rather than just part of it that was demolished; everything was brought to the ground except the first minaret. Everything else was rebuilt with the exception of the first minaret as the rest of the Masjid was built and fitted into the Masjid. Juma Masjid is not only a place of worship but also a place of education and learning for people. A school for young Muslim girls was also established in 1957, this school has a roll of approximately 400 learners and 300 Madressah students. A Madressah is an institute put in place for children to learn about their religion of Islam and become law abiding citizens, teaching their students morals, values and etiquette. Being in the heart of the bustling Durban central it is convenient for people working in the area. Established as a girl’s school it is now a co-ed school. The Masjid itself is very beautiful Juma Masjid is of major importance in the Muslim community of Durban, as it is occupied daily by hundreds of Muslim men who attend prayers daily. On Fridays in particular, Grey Street will always be busier than usual as all roads lead to Juma Masjid. Friday is the day of most important after Eid prayers in a Muslims life. Thousands of Muslim men close their shops, leave work early and make their way to Juma Masjid in prayer. Women at home prepare lunch as they get ready for their prayers as well. Two other days are also busier than usual; the days of Eid. As thousands of Muslims take the day off from work as everything apart from religion comes to a stop. Everyone in the household is awake early as they ready themselves for the day that lies ahead. Muslim men all flock to Eid Prayers early in the morning as there are large gatherings all around the city. The day is then spent with family, great functions are held as people come together to celebrate this auspicious day of Eid. Juma Masjid has a distinct Islamic architecture style to, with its golden minaret which glistens in the rays of the sun many people often forget it’s majestic and eye popping beauty. I for one am yet to come across a Masjid that has shops, offices, a school and still a beautifully designed Masjid; all in one structure. When you enter this Masjid you are greeted with an archway, which is just underneath one of the golden minarets. Leaving your shoes outside your feet are met by the soft and warm red cushioning carpet as they sink into the carpeted floor as you enter this century old marvel. Once inside, it is realised Juma Masjid is amazing inside as well, built in a baronial style. Juma Masjid is truly something to be admired. With a Corinthian type walls on each of its high rise levels. Being Muslim I have visited many different Masjids around the country but not once have I ever come across another Masjid that has a pond in its Wudhu area. Wudhu being commonly known as ablution, simply cleansing oneself of impurities and keeping yourself clean and respectable as you prepare to stand before Allah in prayer. With the Wudhu area being a square with ablution stations all around it, all comes together with a pond in the middle and topping it off fish swimming inside is just the wonders of this spiritual sanctuary.

Slavery and Indentured Servants Essay Example for Free

Slavery and Indentured Servants Essay PART ONE Question 2: Thomas Jefferson feared the growth of manufacturing mainly because he knew that America land compared to Europe’s land wasn’t as adequate and sufficient enough to manufacture our own goods and we would produce different results. Jefferson stated in the â€Å"Republican Thomas Jefferson Celebrates the Virtue of the Yeoman Farmer, 1785† document that â€Å"In Europe the lands are either cultivated, or locked up against the cultivator. Manufacture must therefore be resorted to of necessity not of choice, to support the surplus of their people† (Jefferson, 1). Also, Jefferson kept the lower class in mind and he knew that a lot of lower class families couldn’t afford to buy and sell manufactured goods. Therefore, Jefferson focused more on a nation of commercial agriculture and independent farmers, so that the low class families could work and toil for their needs. Jefferson also believed that people wanted to manufacture their own goods for the wrong reasons. For instance, Jefferson stated that people â€Å"depend on land for the casualties and caprice of customers† (Jefferson, 1). However, Alexander Hamilton’s view of America’s socioeconomic future differed from Thomas Jefferson because Hamilton dreamed of transforming the United States into a manufacturing giant like Great Britain. Hamilton was against commercial agriculture and independent farmers because he felt that â€Å"the separation of occupations causes each to be carried to a much greater perfection, than it could possibly acquire, if they were blended† (Hamilton, 1). This statement proves true to me because if everyone did the same occupation, less people would try as hard to succeed and there would also be fewer opportunities for people. Diversity brings forth a greater changer and it has more significance. If a society focused solely on complete agriculture the result and produce would vary for numerous of reasons. One reason for example is location, which can be referred to by the temperature. According to Hamilton â€Å"the difference of seasons, in the countries which are consumers make immense differences in the produce of their own soils; in different years; and consequently in the degrees of their necessity for foreign supply† (Hamilton, 2), as well as other natural problems that may occur such as lack of soil and land. Therefore, in order to secure a stable and consistent market, one would need to agree with Hamilton and set up manufacturing establishments. In my opinion, I think that both men have correct and valid point and opinions. Today, American political system expresses both elements of their philosophies. PART TWO Question 3: The thought of coming to North America for indentured servants seemed like a dream to many because it was an answer or at the very least a solution to their many problems. According to Divine textbook, indentured servants are â€Å"individuals who are contracted to serve a master for a set number of years in exchange for the cost of boat transport to America† (Divine, 26). Also in exchange for their transportation were food, lodging, clothing, and other necessities that were provided as well. Before immigration to North America indentured servants lived a very poor life in their country and suffered immensely. Most English immigrants faced poverty, unemployment, lack of clothing and food, and even shelter. But upon entering into North America most indentured servants (but not all), received the opposite of what they expected, hoped, and dreamed of and instead experienced negative results within this new land. According to the document â€Å"Our Plantation is Very Weak†, which is a letter from Richard Frethorne written to his parents during his experience as an indentured servant in Virginia in 1623; it displays extreme suffering and pity. As the title implies, his plantation was very weak due to the many death and sicknesses that the English carried over with them. For example, â€Å"For we came but twenty for the merchants, and they are half dead just; and we look every hour when two more should go† (Frethorne, 1). Therefore, they transitioned from poor suffering adults in England to the continuation of suffering as becoming servants, indentured servants. Furthermore, Frethorne begged for his parents to redeem his indenture and if not possible then at the very least that they would send some money to purchase him food. From reading this letter I really saw how much he and the other indentured servants suffered. It was so severe that the English cried out that they wished â€Å"that they were in England without their limbs-and would not care to lose any limb but to be in England again† (Frethorne, 1). Also, Frethorne quoted that â€Å"he has eaten more in [one] day at home than what he has eaten there for a week† (Frethorne, 2). These quotes really demonstrated the disparity of the indentured servants in Virginia and Frethorne’s true desire of wanting to return back to England, which wasn’t so bad after all compared to the horrible new land. However, in contrary to Frethorne, George Aslop’s writing in â€Å"They Live Well in the Time of their Service† during 1663 in Maryland document was viewed more positively than Frethorne’s outlook. He actually and surprisingly agrees with servitude. Aslop wrote, â€Å"For I’m certainly confident, that there are several Thousands in most Kingdoms of Christendom, that could not at all live and subsist, unless they had served some prefixed time† (Aslop, 2); he found servitude necessary for better living. I think it is very interesting how Frethorne’s and Aslop’s outlook on being a servant is very different. Aslop was an indentured servant for four years and instead of viewing it as enslavement he viewed it as simply serving because he was more focused on the benefits and not the circumstances. For example, â€Å"And what’s a four year’s Servitude to advantage a man all the remainder of his dayes, making his predecessors happy in his sufficient abilities, which he attained to partly by the restrainment of so small a time?† (Aslop, 2) Nonetheless, I have to keep in mind that what they experienced were in different locations (Virginia/Maryland). For instance, according to Aslop Maryland had it easier compared to other colonies, â€Å"For know, That the Servants here in Mary-Land of all Colonies, distant or remote Plantations, have the least cause to complain, either for strictness of Servitude, want of Provisions, or need of Apparel† (Aslop, 3). Also, Aslop’s document was written after his servitude as an indentured servant and Frethorne’s letter was written during his servitude. Therefore, Frethorne was more focused on his present situation because that was what he was currently enduring and dealing with. As for Aslop, who was currently enjoying the fruits of his labor therefore all of the negative experiences that he may have had meant less to him now that he survived. Also, another important difference between Frethorne and Aslop is that Aslop wasn’t necessarily a typical indentured servant because he had prior experience as an artisan or mechanic, which is more beneficial. Aslop noted, â€Å"Now those Servants which come over into this Province, being Artificers [craftsmen], they never (during their Servitude) work in the Fields† (Aslop, 3). All in all, these are the life of an indentured servant before, during, and after immigration; as well as how their life changed from that in which it was in Europe. Compared to the life of a slave, I personally view indentured servants as a form of slavery. One difference that slavery and indentured servants have to me is that slavery never had a guaranteed ending for the slaves. In most cases, in order for a slave to become free they had to escape; and if caught most often slaves were killed without any negative repercussions to the master or caregiver. Unlike indentured servants who had a signed contract guaranteeing that after they served a certain amount of years they would become free. However, if an indentured servant decided to escape, if caught death was not the punishment. According to Gottlieb Mittelberger document, â€Å"Work and labor in this new and wild land are very hard† indentured servants simply had to keep serving or at worst get sold to another master. â€Å"If such a runaway has been away from his master one day, he must serve for it as a punishment a week, for a week a month, and for a month half a year. But if the master will not keep the runaway after he has got him back, he may sell him for so many years as he would have to serve him yet† (Mittelberger, 3). Some similarities between slaves and indentured servants were that they both endured extreme hardships beginning on their voyage in the ship to their arrival on the plantations. Also, they both were sold to slave owners and masters. â€Å"No one is permitted to leave the ship except those who pay for their passage or can give good security; the others, who cannot pay, must remain on board the ships till they are purchased, and are released from the ships by their purchasers† (Mittelberger, 1). According to the Virginia Slave Laws, indentured servants were allowed to marry and were allowed to own property, unlike slaves. Also, another difference of the treatment of slaves that differs from the treatment of indentured servants is that slaves were allowed to be stripped naked and whipped but indentured servants were not. In summary, the more slaves endured severe things then the better it was for indentured servants, their status improved drastically compared to the rigid treatme nt of slaves. Some of the main factors that contributed to the waning of indentured servitude and the growth of American slavery is that the supply of white servants fell sharply, which included many factors. To replenish its labor force, planters turned to enslaved Africans. Also, Virginia and Maryland’s land became less attractive as land grew scarcer which is why many immigrants began to migrate to different colonies. Something that I found interesting within the Virginia Slave Laws is that black slavery took root in the Americans slowly. â€Å"There was a small number of Africans that already lived in Virginia before 1619, the year a Dutch ship sold some twenty blacks to the colonists. But it was not until the 1680’s that black slavery became the dominant labor system on plantations here. By 1640, only 150 blacks resided in Virginia and in 1650, 300. But by 1680, the number rose to 3,000 and by 1704, to 10,000† (Virginia Slave Laws, 1). Contrary to my assumptions in which I thought that slavery happened rapidly. In conclusion, indentured servants suffered just like slaves did. As seen above slaves and indentured servants shared commonalities as well as some divine differences.

Law Of Diminishing Marginal Utility Economics Essay

Law Of Diminishing Marginal Utility Economics Essay Managerial Economics is the intergration of bridges the gap between economic theory with business practice so as to facilitate decision making Comment outline the nature and scope of Managerial Economics in light of this statement. Spencer and Siegelman have defined Managerial Economics as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management. The above definitions suggest that Managerial economics is the discipline, which deals with the application of economic theory to business management. Managerial Economics thus lies on the margin between economics and business management and serves as the bridge between the two disciplines. The following Figure 1.1 shows the relationship between economics, business management and managerial economics. pg-2 NATURE OF MANAGERIAL ECONOMICS There are certain chief characteristics of managerial economics, which can help to understand the nature of the subject matter and help in a clear understanding of the following terms: Managerial economics is micro-economic in character. This is because the unit of study is a firm and its problems. Managerial economics does not deal with the entire economy as a unit of study. Managerial economics largely uses that body of economic concepts and principles, which is known as Theory of the Firm or Economics of the Firm. Managerial economics is concrete and realistic. It avoids difficult abstract issues of economic theory. But it also involves complications ignored in economic theory in order to face the overall situation in which decisions are made. Economic theory ignores the variety of backgrounds and training found in individual firms. Managerial economics belongs to normative economics rather than positive economics. Normative economy is the branch of economics in which judgments about the desirability of various policies are made. Positive economics describes how the economy behaves and predicts how it might change. In other words, managerial economics is prescriptive rather than descriptive. It remains confined to descriptive hypothesis. Managerial economics also simplifies the relations among different variables without judging what is desirable or undesirable. For instance, the law of demand states that as price increases, demand goes down or vice-versa but this statement does not imply if the result is desirable or not. Managerial economics, however, is concerned with what decisions ought to be made and hence involves value judgments. This further has two aspects: first, it tells what aims and objectives a firm should pursue; and secondly, how best to achieve these aims in particular situations. Macroeconomics is also useful to managerial economics since it provides an intelligent understanding of the business environment. This understanding enables a business executive to adjust with the external forces that are beyond the managements control but which play a crucial role in the well being of the firm. SCOPE OF MANAGERIAL ECONOMICS As regards the scope of managerial economics, there is no general uniform pattern. However, the following aspects may be said to be inclusive under managerial economics: Demand analysis and forecasting. Cost and production analysis. Pricing decisions, policies and practices. Profit management. Capital management. Demand Analysis and Forecasting A business firm is an economic Organisation, which transforms productive resources into goods that are to be sold in a market. A major part of managerial decision-making depends on accurate estimates of demand. This is because before production schedules can be prepared and resources are employed, a forecast of future sales is essential. This forecast can also guide the management in maintaining or strengthening the market position and enlarging profits. The demand analysis helps to identify the various factors influencing demand for a firms product and thus provides guidelines to manipulate demand. Demand analysis and forecasting, thus, is essential for business planning and occupies a strategic place in managerial economics. It comprises of discovering the forces determining sales and their measurementDemand determinants Demand distinctions Demand forecasting. Cost and Production Analysis A study of economic costs, combined with the data drawn from the firms accounting records, can yield significant cost estimates. These estimates are useful for management decisions. The factors causing variations in costs must be recognised and thereby should be used for taking management decisions. This facilitates the management to arrive at cost estimates, which are significant for planning purposes. An element of cost uncertainty exists in this because all the factors determining costs are not always known or controllable. Therefore, it is essential to discover economic costs and measure them for effective profit planning, cost control and sound pricing practices. Production analysis is narrower in scope than cost analysis. The chief topics covered under cost and production analysis are: Cost concepts and classifications Cost-output relationships Economics of scale Production functions Cost control. Pricing Decisions, Policies and Practices Pricing is a very important area of managerial economics. In fact price is the origin of the revenue of a firm. As such the success of a usiness firm largely depends on the accuracy of price decisions of that firm. The important aspects dealt under area, are as follows: Price determination in various market forms Pricing methods Differential pricing product-line pricing and price forecasting. Profit Management Business firms are generally organised with the purpose of making profits. In the long run, profits provide the chief measure of success. In this connection, an important point worth considering is the element of uncertainty existing about profits. This uncertainty occurs because of variations in costs and revenues. These are caused by factors such as internal and external. If knowledge about the future were perfect, profit analysis would have been a very easy task. However, in a world of uncertainty, expectations are not always realised. Thus profit planning and measurement make up the difficult area of managerial economics. The important aspects covered under this area are: Nature and measurement of profit. Profit policies and techniques of profit planning. Capital Management Among the various types and classes of business problems, the most complex and troublesome for the business manager are those relating to the firms capital investments. Capital management implies planning and control and capital expenditure. In this procedure, relatively large sums are involved and the problems are so complex that their disposal not only requires considerable time and labour but also top-level decisions. The main elements dealt with cost management are: Cost of capital Rate of return and selection of projects. The various aspects outlined above represent the major uncertainties, which a business firm has to consider viz., demand uncertainty, cost uncertainty, price uncertainty, profit uncertainty and capital uncertainty. We can, therefore, conclude that managerial economics is mainly concerned with applying economic principles and concepts to adjust with the various uncertainties faced by a business firm. Managerial Economics serves as a link between traditional economics and the decision making sciences for business decision making. The best way to get acquainted with managerial economics and decision making is to come face to face with real world decision problems. Managerial economics is used by firms to improve their profitability. It is the economics applied to problems of choices and allocation of scarce resources by the firms. It refers to the application of economic theory and the tools of analysis of decision science to examine how an organisation can achieve its objective most efficiently. Ques No 2. Discuss the role of Managerial Economist in a Business Organization. A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of successful decision-making and future advanced planning. The  role of managerial economist  can be summarized as follows: He studies the economic patterns at macro-level and analysis its significance to the specific firm he is working in. He has to consistently examine the probabilities of transforming an ever-changing economic environment into profitable business avenues. He assists the business planning process of a firm. He also carries cost-benefit analysis. He assists the management in the decisions pertaining to internal functioning of a firm such as changes in price, investment plans, type of goods /services to be produced, inputs to be used, techniques of production to be employed, expansion/ contraction of firm, allocation of capital, location of new plants, quantity of output to be produced, replacement of plant equipment, sales forecasting, inventory forecasting, etc. In addition, a managerial economist has to analyze changes in macro- economic indicators such as national income, population, business cycles, and their possible effect on the firms functioning. He is also involved in advising the management on public relations, foreign exchange, and trade. He guides the firm on the likely impact of changes in monetary and fiscal policy on the firms functioning. He also makes an economic analysis of the firms in competition. He has to collect economic data and examine all crucial information about the environment in which the firm operates. The most significant function of a managerial economist is to conduct a detailed research on industrial market. In order to perform all these roles, a managerial economist has to conduct an elaborate statistical analysis. He must be vigilant and must have ability to cope up with the pressures. He also provides management with economic information such as tax rates, competitors price and product, etc. They give their valuable advice to government authorities as well. At times, a managerial economist has to prepare speeches for top management. Ques No 3. Critically explain the role of the concept of Time value of Money in Mangerial decisions? The time value concept of money assumes importance because of the fact that future is always associated with uncertainty. A rupee in hand today is valued higher than the one rupee that is expecting to be recovered tomorrow. The following are points that come in support of the fact that the concept of time value of money is quite relevant in any area of decision making : (a) The purchasing power of money over period of tinw goes down in real times. That means, though numerically the same, the purchasing power of one rupee today is considered to be high economically than its value as on a future date. (b) Individuals prefer present consumption to future consuiilption. This is because of the risk a n d uncertainty associated with future. (c) There is always related costs in any investinent. These costs tend to bring down future value of money. The concept of time value of money figures in rnany day-to-day decisions. For example. in the vital decision making areas in the management like the effective rate of interest on a business loan. The mortgage payment in real estate transaction and evaluation of true Return on investment etc. the time value of money plays an important role. Wherever use Of money is involved and its inflow and outflow patterns are spread over a time horizon, this concept very useful. For example consider the following: * A banker must establish the term of loan * A finance manager is who considers various alternatives sources of funds in terms of cost. * A portfolio manager is one who evaluates various securities Ques No 4 Compare the Cardinal Ordinal Approaches to Consumer Behaviour. Which of these enables us to bifurcate the price effect and how? Cardinal Approach refers that you can calculate or Measure the utility (degree of satisfaction) Numerically, while According to ordinal approach you can not measure the utility numerically.   Cardinal Approach follow the Law of Diminishing Marginal Utility while Ordinal Approach follow the Indifference Curve. Cardinal Approach Emphasis on units while ordinal approach is based on rank. When discussing cardinal vs. ordinal, it is helpful to look at what the words mean. The distinguishing factor here is between cardinal and ordinal numbers. Cardinal numbers are 1, 2, 3; ordinal numbers, 1st, 2nd, 3rd. Some crucial differences follow from that. Whereas mathematical operations can be performed on cardinal numbers, they cannot be performed on ordinal numbers. Now, when talking about cardinal utility, it is an attempt to measure the utility of various alternatives. When talking about ordinal utility, it is the ranking of alternatives. Cardinal utility is, however, an erroneous concept. It is impossible to measure utility. People can only say I prefer A to B, but cannot meaningfully say I prefer A 2.5 times more than B or something to that effect. Furthermore, comparisons of utility between different individuals are impossible and meaningless, as well as between the same individual at different points in time (as individuals can and do change their preferences that is, ordinal value-scale rankings). Because value is subjective, we cannot measure it and cannot compare between two different people, or even between the same person at different times. To clarify, ordinal utility culminates in value-scales: 1st: A   2nd: B   3rd: C whereas cardinal utility is the erroneous attempt at measurement: 10utils A   7utils B   3utils C Ques No 5. Managerial Economics is inter- disciplinary in natureComment/ Explain the relationship of ME with other disciplines. Managerial economics is essentially applied economics in the field of  business management. à ¢Ã¢â€š ¬Ã‚ ¢It is the economics of business. à ¢Ã¢â€š ¬Ã‚ ¢It pertains to all economics aspects of  managerial decisions making. à ¢Ã¢â€š ¬Ã‚ ¢It is the integration of economic principles with business management practices. à ¢Ã¢â€š ¬Ã‚ ¢Managerial economics rests on the edifice of  economics. à ¢Ã¢â€š ¬Ã‚ ¢A fundamental knowledge of economics and economic theory is needed for a  meaningful analysis of business situation Managerial economics is linked with various other fields of study like- Microeconomic Theory: As stated in the introduction, the roots of managerial economics spring from micro-economic theory. Price theory, demand concepts and theories of market structure are few elements of micro economics used by managerial economists. It has an applied bias as it applies economic theories in order to solve real world problems of enterprises. Macroeconomic Theory: This field has little relevance for managerial economics but at least one part of it is incorporated in managerial economics i.e. national income forecasting. The latter could be an important aid to business condition analysis, which in turn could be a valuable input for forecasting the demand for specific product groups. Operations Research: This field is used in managerial economics to find out the best of all possibilities. Linear programming is a great aid in decision making in business and industry as it can help in solving problems like determination of facilities on machine scheduling, distribution of commodities and optimum product mix etc. Theory of Decision Making: Decision theory has been developed to deal with problems of choice or decision making under uncertainty, where the applicability of figures required for the utility calculus are not available. Economic theory is based on assumptions of a single goal whereas decision theory breaks new grounds by recognizing multiplicity of goals and persuasiveness of uncertainty in the real world of management. Statistics: Statistics helps in empirical testing of theory. With its help, better decisions relating to demand and cost functions, production, sales or distribution are taken. Managerial economics is heavily dependent on statistical methods. Management Theory and Accounting: Maximisation of profit has been regarded as a central concept in the theory of the firm in microeconomics. Ques No 6. Discuss the properties of Indifference Curves. Discuss their role in consumers decision making process? Indifference Curves Each point in the  diagram  stands for a basket of meat and ghee (cooking oil) A, B, C, D are all baskets among which a certain consumer is indifferent. All give equal utility. These points and all others on a smooth curve connecting them constitute an indifference set. An indifference curve is a graphical representation of an indifferent set. Indifference Curve Properties Following are the indifference curve properties: 1. If two commodities are perfect substitute the indifference curve is a straight line. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%201.jpg When two commodities are not substitutable then the shape is represented by two vertical and horizontal lines. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%202.jpg In more typical cases, in which the two commodities can be substituted for each other but are not perfect substitutes, the indifference curve will be curved as http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%203.jpg 4. The more easily the two commodities can be substituted for each other the nearer will the curve approach straight line. 5. Indifference curves normally slope downward, the upward sloping portion of curve shown here s impossible. Basket A has more goods than basket B and therefore it could not be on the same indifference curve.   The indifference curves have normally negative slops sloping downward. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%204.jpg 6. The absolute value of the slope of an indifference curve at any point represents the ratio of the marginal utility of the good and on the horizontal axis to the marginal utility of the good on the vertical axis. The rate at which one good can be substituted for the other without gain or loss in satisfaction is called marginal rate of substitution. 7. Indifference curves are convex, that is, their slope decrease as one moves down and to the right along them. The implies that the ratio of the marginal utility of meat to the marginal utility of the ghee (cooking oil) also known as marginal ratio of substitution of meat for ghee (cooking oil) diminishes as one moves down and to the right along the curve. 8. Indifference curves can be drawn through the point that represents the basket of goods whatsoever. Ques No 7. Discuss the concept of Production Possibility Curve? What is the reason behind its shape? Do you think there are exceptions to it? Production Possibility curves The production possibility curves is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other. The curve is used to describe a societys choice between two different goods.  Figure 1, shows the two goods as consumption and investment.  Investment goods are goods that are involved in the production of further consumption goods.  They include physical capital such as machines, buildings, roads etc. and human investments such as education and training. The sums of all investments make up the capital stock of a society. To show the point where all resources were used to produce consumption goods, one should move straight up the vertical axes to the curve.  To show the point were all resources were used to produce investment goods, one should move straight on the horizontal axes to the curve.  Both points are extreme and unrealistic.  Both points A and B represented m ore realistic combinations, with point A showing more consumption and less investment, while point B shows more investment and less consumption. http://krypton.mnsu.edu/~renner/image001.JPG The production possibility curve of figure 1., shows the trade off in production between investments and consumption goods. Any two categories of different goods could be chosen. What they are is arbitrary. The curve is used to show during a specific  period, what could be produced of the combination of the two goods, if all resources are fully employed, while technology and institutions do not change.  Given those conditions, societies output potential is realized anywhere on the curve (which is called the production possibility curves frontier). Unemployed resources (labor, capital, physical resources) of any kind would result in an inefficient production level,  and would be shown as a point to the left, or inside the curve. By definition all point to the right or outside of the production possibility curve (frontier) are impossible, given the limits of resources and technology. Opportunity Cost This hypothetical curve shows how much of consumption must be given up to increase investments (the movement from A to B).  This demonstrates the important economic concept of  Opportunity Cost, which is the cost of anything (such as an investment in a new road), in terms of what has to be given up.  This is the general concept of cost in economics. For the individual, these costs could be financial, but they could include a individuals time and other intangibles. For society the production possibility curve shows opportunity cost only on the curve itself.  If society found itself inside the curve, for instance, during a recession (where all resources are not being utilized), then a movement out to the production possibility curve has no real opportunity cost. The unemployed resources are just being utilized (unemployed labor going back to work). Opportunity cost is different than accounting cost, and unfortunately is not so easily calculated. Opportunity cost has a subjective element.  For instance, to determine the opportunity cost of a new highway, includes the obvious cost of materials, of labor, of land, (these are the easily determined accounting cost), but there are also intangible cost, such as the cost to the community of the disruption involved with new construction, and the change in the communities effected by the highway. Also there may be costs connected to increase pollution (with health effects), increased noise, and an increase in general unattractiveness.  These cost are real, but are difficult to both measure and evaluate. Putting a dollar value on these cost adds a subjective element to the evaluation. As a result sometimes they are ignored.   Ques No 8. Graphically explain the Law of Diminishing Marginal utility. Discuss its applicability in the intergrated Global Economy Law of Diminishing Marginal Utility The Law of Diminishing Marginal Utility states that as the consumer consume more and more units of a commodity the marginal utility of the commodity falls. The law of diminishing marginal utility is a psychological law arrived at by introspection and by empirical evidence. The example of this law is when a consumer drinks water on a hot afternoon; the first glass of water gives him more satisfaction as compared to the second (as the thirst has decreased after consuming one glass of water). The second glass of water gives more satisfaction as compared to the third and so on. The Law of Diminishing Marginal Utility, which states that as the consumer consume more and more units of a commodity the marginal utility of the commodity falls. If MUx â‚ ¬Ã‚ ¾ MUy Px Py it means that good x is giving more satisfaction to the consumer as compared to good y. Therefore the consumer would gain satisfaction by consuming more of good x and less of good y. As he consumes more of good x, MUx will fall which would lead to fall in MUx/ Px. Similarly MUy will rise as he consumes less of good y. This would increase MUy/ Py. This process will continue till we reach the equilibrium point where MUx = MUy = MU of the last rupee spent on each good Px Py Similarly if MUx Px Py The consumer would increase the consumption of good y and reduce the consumption of good x till he reaches the equilibrium point where MUx = MUy = MU of the last rupee spent on each good Px Py EXAMPLE OF DIMINISHING MARGINAL UTILITY :-   This law can be explained by the following example. Suppose in the month of June a person start drinking water. First glass of water has a great utility for him. If he takes the second glass of water, the utility will be less than the first. If he drinks the third glass , the utility of third will be less than the second, and so on. The utility goes on diminishing with the consumption of every next unit and it drops down to zero. If the consumer is forced further, the utility will become negative. This law can also be explained by the following table : https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhUFSIqPKZZAMn36gMl-YnzvtyglfxYvnKw-zFrJR_WyL_Ta6Lvulcr4Aq_udT9FZd23-kB_-mgqKfJwzbZMx9yv37Gu3sZ97VjuS7XozM3YaqqsPPuvUKgwBknFpFZFVWPYCfqcJR5F8E/s320/schedule+of+diminshing+marginal+utility.JPG EXPLANATION :-  The above table show that first glass of water gives units of utility to the thirsty man. When he takes second the marginal utility drops down to 8. When he consumes the 6th glass the marginal utility drops down to zero and by the use of 7th it becomes negative. https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgQTavugBoWuWSI9nngDFJFMEoVDDlE0SmWZZopzBeY8VkP_iEpnTVDV43lwfK-cZTTAw-cnu-_q3UW019zk0h-9BaOAnmPjZtzKIoVKICLJI9n18YwM0DvI5RA2XM0W-N0aIE94MBqFag/s320/diagram+of+diminishing+marginal+utility.JPG EXPLANATION :-  Along OX we measure the units of commodity consumed along OY utility derived from them. The utility of the first glass of water is represented by the first rectangle and second glass by the second rectangle and so on. FF curve is the diminishing utility curve. ASSUMPTIONS OF DIMINISHING MARGINAL UTILITY 1. NATURE OF THE COMMODITY :-  There should be no change in the nature of the commodity. For example, If first mango taken is not better, while the second is better, then the utility will not decrease and the utility of second will be greater than first. 2. REASONABLE UNITS :-  It is assumed that the units of a commodity which are used should be suitable and reasonable if the units are too small then this law will not operate. 3. CONTINUOUS USE :-  It is also assumed that the units of the commodity should be used continuously. If there is interval between the consumption the same two units then the law will not be applicable. 4. NO CHANGE IN INCOME :-  It is also assumed that the income of the consumer should not change, otherwise the law may not operate. 5. NO CHANGE IN FASHION AND CUSTOMS :-  If there is a sudden change in fashion or customs of a consumer, the law may not operate. 6. RARE COLLECTIONS :-  If there are two diamonds in the world the possession of the second diamond will push up the marginal utility. 7. NO CHANGE IN THE STOCK OF OTHER PEOPLE :-  Sometimes an increase in the stock of a commodity increases the marginal utility. For example the number of telephone increase in the city, but the utility of our telephone increases. 8. STATE OF MIND SHOULD NOT CHANGE :-  If a consumer has been told that  mango  is a tonic for his health, then marginal utility will increase instead of falling. EXCEPTIONS OR LIMITATIONS 1. DESIRE OF MONEY :-  This law is not applicable in case of money with an increase in wealth man wants to get more and more. 2. DESIRE OF KNOWLEDGE :-  Some experts say that man wants to get more and more knowledge so the law can not be applied in this case. 3. USE OF LIQUOR :-  With the additional use of liquor like wine marginal utility also goes on increasing. 4. PERSONAL HOBBY :-  In case of hobby also this law can not operate. For example , as the collection of tickets increases, its utility also increases. 5. FASHION :-  Utility also depends upon fashion. If the fashion of any commodity changes, its utility drops down to zero. On the other hand if fashion exists then utility increases. Ques No 9. Describe how Marginalism, Opportunity cost Incremental concept aid Decision Making. The marginalist explanation is as follows: The total utility or satisfaction of water exceeds that of diamonds. We would all rather do without diamonds than without water. But almost all of us would prefer to win a prize of a diamond rather than an additional bucket of water. To make this last choice, we ask ourselves not whether diamonds or water give more satisfaction in total, but whether one more diamond gives greater additional satisfaction than one more bucket of water. For this marginal utility question, our answer will depend on how much of each we already have. Though the first units of water we consume every month are of enormous value to us, the last units are not. The utility of additional (or marginal) units continues to decrease as we consume more and more. Economists believe that sensible choice requires comparing marginal utilities and marginal costs. They also think that people apply the marginalism concept regularly, even if subconsciously, in their private decisions. In southern states, for example, a much lower fraction of people buy snow shovels than in northern states. The reason is that although snow shovels cost about the same from state to state, the marginal benefit of a snow shovel is much higher in northern states. But in discussions of public-policy issues, where most of the benefits and costs do not accrue to the individual making the policy decision (e.g., subsidies for  health care), the appeal of total utility and intrinsic worth as the basis for decision can mask the insights of marginalism. Even good answers to certain grand questions give little guidance for rational public policy choices. For example, what is more important, health or recreation? If forced to choose, everyone would find health more important than recreation. But marginalism suggests that our real concern  should be with proportion, not rank. Finding health in total to be more important than recreation in total does not imply that all diving boards should be removed from swimming pools just because a few people die in diving accidents. We need to compare the number of lives saved from fewer diving accidents, that is, the marginal benefit of getting rid of diving boards, with the pleasure given up by getting rid of diving boards, that is, the marginal cost of getting rid of

Ralph Waldo Emerson and Henry David Thoreau :: essays research papers

Ralph Waldo Emerson and Henry David Thoreau were both born in Massachusetts. Emerson was born in Boston in 1803. Thoreau was born in Concord in 1817. Emerson attended Harvard and then became a Unitarian minister just like his father had been. Thoreau also attended Harvard but upon graduating, became a teacher and opened up a school. Both Emerson and Thoreau gave up their careers to pursue Transcendentalist philosophy. Emerson was one of the first to start the Transcendental Club. Thoreau became Emerson's student after he had moved into his house. Thoreau simplified his needs and began to experiment with Transcendentalism through experience. Although Emerson's writings achieved national recognition during his lifetime, Thoreau did not see such fame during his own life. They were both active Transcendentalists, but their philosophies and methods differed slightly. Emerson believed one should live in harmony with nature. One of his essays, appropriately titled, "Nature," was the first published essay on Transcendentalist philosophy. Emerson theorized that man was one and the same with nature and he wrote about his experiences with nature. In "Nature," Emerson wrote that, "In the woods, we return to reason and faith. "Although he was the one to write this, it was Thoreau who went to extremes and took this literally. Though Emerson and Thoreau both believed in living in harmony with something, they differed on what it was they were to live in harmony with. While Emerson lectured about Transcendetalist philosophy, Thoreau thoroughly practiced it. Emerson believed in living in harmony with nature. Thoreau believed in living in peace and harmony with ourselves. Thoreau took Transcendentalism to the extremes. He simplified every aspect of his live and went" back to nature" to test the experiences of Transcendentalism. He focused on how he could live in peace and harmony with himself in nature while Emerson lectured about living in harmony with nature. Thoreau took Emerson's teachings and expanded on them. Emerson played his role as teacher and Thoreau played his role as student. They did this both whle living in the same household and throughout their lives. Emerson taught Transcendentalist philosophy and Thoreau not only expanded on those teachings, he used them for experimenting with Transcednetalism.

The Ethics of Xenotransplantation Essay -- Morals Science Biology Essa

The Ethics of Xenotransplantation 1. Introduction to Xenotransplantation Xenotransplantation is the process of taking cells, parts of organs, or even whole organs from one species of animal, and implanting them into another species. The FDA has given their own definition of xenotransplantation which they say is â€Å"any procedure that involves the transplantation, implantation, or infusion into a human recipient of either live cells, tissues, or organs from a non human animal source, or human body fluids, cells, tissues or organs that have had ex vivo contact with live non human animal cells, tissues or organs.† The main interest of the practice is to be able to take organs from animals for the purpose of using them in humans in need of organ transplants. It is still a relatively new medical phenomena, with documented cases of the practice only taking place since 1906. 2. The Case The case at hand is whether or not we should use xenotransplantation in humans. It is a rather controversial topic that has brought up strong feelings in parties on both sides of the argument. One of the main arguments of the people who are for xenotransplantation is that there is a large shortage of organs available for transplant, and that animal organs could provide enough spares to satiate the need. A recent figure given by the FDA is that currently 13 people die per day in the U.S. because of the lack of organs available for transplant. Meanwhile, one of the arguments of those people against xenotransplantation stems from animal rights. Some people feel that it is wrong to use animals in such a way and that there is a great potential for animal abuse. A marker to the seriousness of the current need for donor organs is that ac... ...an. 1998. <http://wedge.nando.net/newsroom/ntn/health/012198/health5_26375_noframes.html> 3. United Network for Organ Sharing (UNOS). "U.S. Facts about Transplantation." Nov. 2000. <http://www.unos.org/Newsroom/critdata_main.htm> 4. Koshal, Arvind. "Ethics Issues in Xenotransplantation." University of Alberta. 1993? <http://www.ualberta.ca/~ethics/bb6-3xen.htm> 5. Center for Biologics Evaluation and Research. "FDA Approach to the Regulation of Xenotransplantation." 19 Oct. 2000. <http://www.fda.gov/cber/xap/xap.htm> 6. National Academy Press. "Xenotransplantation: Science, Ethics, and Public Policy." 1996. <http://www.nap.edu/readingroom/books/xeno/> 7. Michaels, Marian. "Defining the Risks and the Risk Reduction Strategies." 27 Feb. 1998. <http://hivinsite.ucsf.edu/topics/xenotransplantation/2098.3896.html>

Philippine Writers Before the Coming of Spaniards

1. Communication =the imparting or exchanging of information by speaking, writing, or using some other medium television is an effective means of communication =means of sending or receiving information, such as telephone lines or computers:satellite communications =means of travelling or of transporting goods, such as roads or railways:a city providing excellent road and rail communications 2. Listening a. There are three modes of listening: competitive, passive and active. Active listening is considered the most effective because the listener is not only listening with interest, but actively acknowledging listening by brief responses.Most individuals are not as skilled at listening as they think. Depending on the study, listeners likely remember 25 to 50 percent of what they hear, according to Mindtools. Giving the speaker your undivided attention and not focusing on what you are going to say in response while he is talking is a good way to ensure you hear more of what is being sai d. Speaking b. Speaking can be an intimidating experience, even in your native tongue, let alone when learning a new language. The best way to learn how to speak, though, is by practicing, so put your inhibitions aside and strike up a conversation whenever you are given an opportunity to do so.When speaking, be aware of your pace, try not to mumble and use expression, both so that you don't sound monotonous and to keep your listener interested. Reading c. Children learn to read by first learning their ABCs and sounding out the letters to discover what sound they make. The phonetic approach to reading—using sound units to figure out the words—is arguably the best approach because theoretically, if you know the sounds, you can read any word, regardless of the difficulty level. This is also the case when learning a new language.Reading has many benefits, including improving memory (it's exercise for the brain), increasing vocabulary and exposing you to new ideas. Writing d. Writing is perhaps the most complex of the communication skills and takes the most time to master. As with any other skill, it is improved through practice and a willingness to improve on past attempts. Moving beyond the basics, there are many types of writing and many levels. Writing can be a basic means of conveying information—such as in newspapers—or it can be a tool to create elaborate new worlds, much like those found in fiction novels such as The Lord of the Rings trilogy. . Poor Encoding – This occurs when the message source fails to create the right sensory stimuli to meet the objectives of the message. For instance, in person-to-person communication, verbally phrasing words poorly so the intended communication is not what is actually meant, is the result of poor encoding. Poor encoding is also seen in advertisements that are difficult for the intended audience to understand, such as words or symbols that lack meaning or, worse, have totally differen t meaning within a certain cultural groups.This often occurs when marketers use the same advertising message across many different countries. †¢Poor Decoding – This refers to a message receiver’s error in processing the message so that the meaning given to the received message is not what the source intended. This differs from poor encoding when it is clear, through comparative analysis with other receivers, that a particular receiver perceived a message differently from others and from what the message source intended. Clearly, as we noted above, if the receiver’s frame of reference is different (e. . , meaning of words are different) then decoding problems can occur. †¢Medium Failure – Sometimes communication channels break down and end up sending out weak or faltering signals. Other times the wrong medium is used to communicate the message. For instance, trying to educate doctors about a new treatment for heart disease using television commer cials that quickly flash highly detailed information is not going to be as effective as presenting this information in a print ad where doctors can take their time evaluating the information. Communication Noise – Noise in communication occurs when an outside force in someway affects delivery of the message. The most obvious example is when loud sounds block the receiver’s ability to hear a message. Nearly any distraction to the sender or the receiver can lead to communication noise. In advertising, many customers are overwhelmed (i. e. , distracted) by the large number of advertisements they encountered each day. Such advertising clutter (i. e. , noise) makes it difficult for advertisers to get their message through to desired customers.

Competitive Strategy Essay

â€Å"Successful and unsuccessful strategies shape a company’s destiny† – R.A. Burgelman, Strategy is Destiny†¦ Competitive Strategy is the high-level strategy used by the firm to realize its business goals, and in particular, profitability, in the face of competition. We study competitive strategy within the overall context of technology firms, which operate within a so-called industry, e.g., the computer industry, the consumer electronic industry, the cellular phone industry. Each industry, ideally, serves a market, which denotes the buyers or customers of the products and services offered by the industry. The function of strategy, which has a time horizon of years, is, in general, to set the long-term direction or position of the firm, for example define the technology, product, or service that the firm intends to develop, and determine the intended market for the product or service. The function of planning, which, in general, has a time horizon of sever al months to years, is to translate long-term strategy into medium-term activities, e.g., the portfolio of projects that the firm should execute the time-phased planning of these projects, and resource allocation. The function of operations, which has the time-horizon of days to months, is, in general, to translate medium-term planning activities into short-term product design, development, and delivery activities such as prototyping, manufacturing, product release, and shipment. No company can follow only one strategy. For example, Johnson & Johnson uses one marketing strategy for its common product such as BAND-AID & Johnson’s baby products; and different marketing strategy for its High Tech healthcare products such as Vicryl Plus, antibacterial surgical sutures or NeuFlex finger joint implants. There are several different types of strategy, including competitive strategy, technology strategy, product market strategy, financial strategy, and supply-chain strategy. For a tec hnology company to be successful all these strategies need to be aligned with each other, and with the business goals of the firm. Competitive strategy, is the highest level of strategy in the firm, and is intimately related to the mission and vision of the firm and also to setting the direction for all the other strategies in the firm. There are several schools of strategy formation: design, planning, positioning (Mintzberg, 1998). We focus on two important schools or frameworks for strategy-creation or â€Å"strategy-making† that are particularly important for high-technologycompanies. The first framework is the so-called â€Å"positioning† approach due to Porter (Porter, 1980), In this approach strategy is viewed as taking a generic position in a competitive market and which views strategy-making as an analytic process performed at the industry-market structural level (Porter, 1980) and the resulting dynamics between functional groups of players (e.g., competitors, suppliers) in the industry. The second framework analyzes strategy-making at the industry-level, company level, and intra-company level using evolutionary organization theory (Burgelman 2002). In this evolutionary organizational theory approach, each company is an organizational ecology within which strategy emerges through two basic mechanisms, external selection and internal selection. When companies start, because they are new and small ¸ the external selection mechanism dominates. As a company grows in size and becomes more established, internal selection plays an important role. Based on e volutionary organization theory, views strategy-making as an evolutionary process performed at three levels: industry-company level, company-level, and intra-company level. When these two frameworks are combined, an integrated approach to competitive strategy emerges: from industry-market level all the way to intra-company level. A unique aspect of creating competitive strategy for a company, and in particular, a high-technology company, is that the time-scales for the evolution of markets, industries, and technologies are, in general, much shorter (â€Å"faster†) compared to other industries. Therefore, the strategy frameworks of the positioning school needs to be augmented with functional maps (Clark and Wheelwright, 1993), which capture the evolution of the market, industry, and technology relevant to the company, and which can therefore be used to create strategy. The objectives of this chapter are as follows: 1. Describe the positioning framework for the creation of competitive strategy. 2. Provide an integrated competitive strategy process which is useful in developing competitive strategy in a technology company. 3. Demonstrate the application of the process of competitive strategy The objective of technology strategy (Clark and Wheelwright, 1993) is to guide the technology company in developing, acquiring, and applying technology for competitive advantage. An important part of technologystrategy is the definition of technical capabilities (e.g., advanced device design, rapid prototyping, automated assembly) that provide competitive advantage. The objective of product/market strategy is to clearly establish the following: define what differentiates the product from its competitors; identify market segments for the product, the customer needs of these segments, and the corresponding products (i.e., product lines) that will be offered to these segments; etc. An important outcome of produc t/market strategy is to define the product roadmap, including sales volume and price, necessary to realize the business goals. However, in the rapidly evolving industry and market landscape of high-technology, competitive strategy, in turn, depends on three levels of â€Å"strategy-making† as follows (Burgelman, 2002): 1. Industry-company level. At this level the firm must determine its strategic position, its core competencies, and its strategic action. 2. Company level: At this level strategy-making involves induced strategy and autonomous strategy. 3. Intra-company level: At this the internal level autonomous strategy is created. In successful companies, it is the tight coupling of strategy these three levels of strategy-making with the highest-level (i.e., industry-market level) competitive strategy that, results in successful strategic action where what the company actually does, e.g., the product lines it develops and markets, results in the realization of its business goals. It is also useful to mention two other strategies that are closely related to competitive strategy. Financial strategy in cludes issues such as capital budgeting and portfolio management, i.e., deciding on which technology and product development projects to fund in order to maximize the cumulative expected profit. Another important and related strategy is supply chain strategy (Chopra), which specifies the service, distribution, and operations functions, performed either in-house or outsourced, that the company should do well in order to successfully realize its intended competitive strategy. The â€Å"Positioning† Framework We first present a historical overview of the positioning or analytic school of strategy. Then, we develop the five forces framework (Porter, 1980) and the approach to creation of competitive strategy that is closely related to the five forces framework. We will use the personal computer industry to illustrate the approach. The positioning school of strategy which emerges from the competitive school is based on the following assumptions (Mintzberg, 1998): the marketplace is competitive strategy is a generic position in the marketplace; strategy formation is the selection of a generic position based on analysis. The underlying assumption is that industry or market structure drives position which drives the organizational structure of the firm. Matrices like the Boston Consulting Group (BCG) introduced two techniques: the growth-share matrix, and the experience curve. The growth-share matrix for a firm, developed in the early 1970s, is a 2Ãâ€"2 matrix with â€Å"growth† along one dimension, and â€Å"market share† along the other dimension. Each of these variables can take two values, â€Å"high† or â€Å"low† resulting in a 2Ãâ€"2 matrix. Therefore, the product portfolio of a firm can be decomposed into four combinations of growth and market share, each with a well defined meaning: (High growth, high market share) or â€Å"stars†, (high growth, low share) or â€Å"question marks†, (slow growth, high share) or â€Å"cash cows†, and (slow growth, low share) or â€Å"dogs†. The approach to strategy using this matrix would be to have a portfolio balanced mainly between cash cows (the stable business of the firm, e.g., â€Å"MAC† computers in the case of Apple) and stars (e.g., the iPod, in the case of Apple). The experience curve, developed in 1965-66, is based on the idea that accumula ted experience by a firm influences costs and prices. The claim â€Å"for the experience curve was that for each cumulative doubling of experience, total costs would decline roughly 20% to 30% because of economies of scale, organizational learning, and technical innovation† (Ghemawat, 1999). In 1971, the consulting firm McKinsey came up with the GE/McKinsey nine-block matrix called the Industry Attractiveness-Business Strength matrix (Ghemawat, 1999), which plotted business strength [High, Medium, Low] along one axis, and industry attractiveness [High, Medium, Low] along the other axis. The basic idea was to divide the company into â€Å"strategic business units (SBUs)†, and then make the appropriate strategic recommendations for each SBU depending on its â€Å"location† in the matrix. The Five Forces Framework and Competitive Strategy In this framework there are two high-level stages in the creation of competitive strategy, each stage corresponding to a high-level determinant of profitability mentioned in the previous section. The first stage is the assessment of the attractiveness of the industry in which a given company is embedded based on a structural analysis of the industry. In this stage, called the five forces framework, five forces that influence industry attractiveness are identified, as well as the factors (e.g., number of competitors, size of competitors, capital requirements) that determine the intensity of each force and therefore the cumulative intensity of the five forces. The purpose of the five forces framework is to relate the degree (or intensity) of competition in a given industry, as qualitatively measured by the combined strength (or intensity) of five forces, to the attractiveness of the industry, defined as its ability to sustain profitability. Based on the structural analysis, a particula r company may be in a very attractive industry (e.g., pharmaceuticals) or in an unattractive industry (e.g., steel). However, though a firm exists in an unattractive industry, it can still be highly profitable by choosing the proper competitive position within the industry, for example, e.g., a mini-mill such as Nucor in the steel industry in the nineteen-eighties (Ghemawat). The second stage of strategy creation addresses the competitive strategy available to the firm in order to achieve a strong competitive position. Ideally, a firm would want to be in a very attractive industry (e.g., pharmaceuticals) and have a strong competitive position (e.g., large pharmaceutical firms such as Smith Klein or Glaxo) within the industry. The five forces framework for the structural analysis of an industry is as follows. First, we define the following terms used in the structural analysis of the industry: industry, market, competitors, new entrants, substitutes, buyers, and sellers. The term ind ustry denotes (1) the manufacturers (or producers) and (2) the suppliers of a primary product or service, as well as (3) the manufacturers of alternative products and services that could serve as a substitute. For example, the (conventional) personal computer (PC) industry would include PC manufacturers like Dell and Apple, suppliers of semiconductor chips like Intel and Micron, suppliers ofdisc drives like Seagate, suppliers of software such as Microsoft, etc. Substitute products could be pen-based tablet PCs or small hand-held personal digital assistants (PDAs). In the five forces framework described below, manufacturers and producers will designated as (1) competitors in the industry if they already have established products, or (2) new-entrants if they are trying to enter the industry, or (3) substitutes, if they provide alternative (substitute) products. The term market denotes the buyers (or customers) of the product or service. For example, the market for PCs would include enterprises and individual consumers. The analytical process of strategy analysis and creation can be decomposed into the following five steps. 1. Create a map of the industry in which the technology company is em bedded. There are five key sets of players that constitute the business landscape: competitors, new entrants, substitutes, suppliers, and buyers. Identify key players (companies) for each industry. 2. Perform a five forces analysis of the industry structure. The five forces that influence the intensity of competition in a particular industry, and therefore the profitability of the firms within the industry: Force 1: the degree of rivalry (or competition) between the competitors; Force 2: the threat of new entrants (or the inverse of this force, the barrier to entry); Force 3: the threat of substitutes; Force 4: Buyer Power (to demand lower prices); Force 5: Supplier Power (to increase material prices). For each force, determine the key structural determinants which affect the intensity of the force. Porter and Ghemawat provide a detailed set of the determinants for each force, some of which are given in the table below. In the last column of this table we indicate plausible values o f each force for the PC industry in the nineteen nineties. Table 1 |Force |Key Determinants |Strength of the force | |Rivalry between competitors |Concentration (number) and size of |Medium to high | | |competitors | | | |Fixed costs/value added | | | |Brand indentity | | |Barrier to entry |Economies of scale |Medium to high | | |Brand identity | | | |Capital requirements | | |Threat of substitutes |Price/Performance of substitutes |Low to medium | | |Switching costs | | |Buyer Power |Buyer concentration | | | |Buyer size (volume) |Medium to high | | |Switching costs | | |Supplier Power |Supplier concentration |Low to medium | | |Supplier size (volume) | | | |Switching costs | | In theory, one would, qualitatively determine the strength of each force, as indicated in the third column of the above table, and then determine the cumulative or combined intensity of the five forces. The collective intensity or strength of the forces will determine the structural strength of the industry, as characterized by attractiveness, or the profit potential of the industry. The profit potential is measured by the long term return on invested capital (ROIC). If the collective strength of the forces is high, as in the steel industry, then the corresponding profit potential or attractiveness is low, and vice-versa. At one extreme of this analysis is the perfectly competitive free market, where there are numerous firms alloffering very similar products that cannot be differentiated (therefore, the force of rivalry is high), entry is free (therefore, the threat of both new entrants and substitutes is high), and bargaining power of both suppliers and buyers is low. Using the PC industry of the 1990’s as an example, the qualitative values of the forces shown in the last column of the above table would lead one to conclude that the cumulative strength of the five forces was medium to high, and therefore the attractiveness of the industry, i.e., its profitability, was medium to low. The PC industry in the nineteen-nineties would therefore not be attractive to new entrants, and in fact, in the early 2000s, HP’s computer business was unprofitable, and IBM sold its computer business to Lenovo. (It is important to note that HP’s unprofitability in computer business in the early 2000s cannot be attributed solely to industry attractiveness being low, but is also due to issues associated with its acquisition of the computer company Compaq.) 3. Select a competitive positioning strategy The basic premise of Porter and Hall was that for a firm to be successful (in a market) it had to compete based on one of two sources of competitive ad vantage: cost, i.e., by providing low cost products, or differentiation, i.e., by differentiating its products from its competitors with respect to quality and performance. Porter also proposed that a firm needs to select its strategic target: either offering a product to the entire market (â€Å"market-wide†), or offering a product for a particular market segment. Using these two dimensions (source of competitive advantage, and strategic target), Porter proposed the following three generic competitive strategies: 1. Cost Leadership: offering the lowest costs products to the entire market 2. Differentiated: offering highly unique products (as perceived by the customer) to the entire market 3. Focus: offering products which serve the needs of a niche segment of the market Porter’s claim is that for a company to be successful in the industry in which it operates it must choose between one of the three generic strategies: cost leadership, differentiated, and focus. If one uses the personal computer industry in the US during the 1990’s as an example, then the competitive strategies of the major players was as follows: Dell was the low-c ost leader; HP had a differentiated strategy with high-quality products; Apple had a focus strategy, targeting a narrow marketsegment of users who whom the user-experience (look, feel, and graphical user interfaces) were extremely important; and IBM had a mixed strategy. 4. Link competitive strategy to strategic planning (Ghemawat 1999) In order for a company to derive competitive advantage (or position) within its industry, the company needs to maximize, relative to it competitors, the difference between the buyer’s willingness to pay and the costs incurred in delivering the product to the buyer. Therefore, the next step in the competitive analysis is for the company to link competitive strategy to strategic planning by analyzing all the activities involved in differentiation and cost, and, to this end, a value chain (Porter, 1985) is an extremely important tool. According to Porter, â€Å"the value chain disaggregates a firm into its strategically relevant activities in order to understand the behavior of costs and the existing and potential sources of differentiation.† A three step process for using these activities, first to analyze costs, then to analyze buyer’s willingness to pay, and finally to explore different strategic planning options to maximize the difference between willingness to pay and cost, is developed in (Ghemawat, 1999). 5. Competitive strategy needs to evolve, especially in a high-technology company where markets, industries, and technologies, are changing relatively rapidly. A good example of the evolution of competitive strategy is IBM’s strategic decisions to evolve from a product-based company in the early nineties to a services-led company at the present time. In the early nineties, when the company was in trouble, IBM closely examined its business model and strategic direction, and decided to â €Å"stay whole† by moving its focus from products and hardware to solutions. One result of this strategic shift was the creation of IBM Global Services in the mid-nineties. By the late-nineties the company moved into e-business solutions, and extended this model in the 2000’s to â€Å"business-on-demand†. One result of these shifts in strategy was IBM’s decision to exit the Personal Computer Market by selling its PC business to Lenovo. Functional Maps A functional map essentially is a time-based evolutionary map of a key metric for an important organizational function, e.g., a product performance metric map for the engineering function in a technology firm, e.g., the well-known Moore’s Law in the semiconductor industry. Since the time-scales for the evolution of markets, industries and technologies for technology companies, especially â€Å"high-tech† companies, is short compared to other industries, the creation of the appropriate functional maps is critical to strategy formation in a technology company. As an example, in the relatively short span of four decades, information technology evolved from mainframes through workstations, servers and personal computers to internet-based and mobile computing. An important feature of our approach to developing competitive strategy in a technology firm is the integrated approach to strategy for a technology company, which relates company strategy to the company’s busin ess goals, business strategy, technology strategy, and product marketing strategy. Since, markets, industries, technologies, and products for a technology company are continually evolving, an important concept that plays a vital role in the creation of strategy, and, in particular, competitive strategy, is the functional map (Clark and Wheelwright, 1993). Here are some useful â€Å"dimensions† along which to create functional maps for strategy creation: a) Evolution of the industry in which the enterprise operates (changes in technology, customer needs, competitive landscape, etc.) b) Evolution of strategy – business, technology, and market – of the enterprise c) Evolution of technology (including manufacturing), product platforms, and product lines of the enterprise. The processes used for technology, product, and process development within the enterprise. d) Growth (or decline) of the enterprise with respect to of market share, revenues, costs, profits, etc. e) Organizational structure of the enterprise f) Key decisions made at different stages in the life of enterprise, and the drivers for these decisions g) The interconnections and relationships between all the above dimensions A multi-dimensional functional map for Intel is given in the next section. A very simple example of how functional maps can shape strategy is in the information technology industry. A functional map of the Information Technology Industry from the 1990s to the 2000s would reveal a shift from â€Å"products† to services†. The Services business in 2007-08 is approximately $750 billion, with IBM, whose share of this market is $54 billion, being the leader. HP, whose own share in the market is $17 billion seeing this shift in the industry and the need to build competitive strength, acquired EDS, whose share of the market is $21 billion. The combined share of HP and EDS would then be $38 billion, allowing it to compete more strongly with IBM. Another simple example of the use of a functional map in creating strategy is in the software industry. In the 2000s the software market is moving from a â€Å"packaged† product to online software, where individuals can get software that is mostly free, supported by advertising. Google is using its leadership on the Web to provide online softwa re that competes with Microsoft’s packaged software. Understanding this shift from packaged to online, and the corresponding change in the revenue model from direct sales (of product) to advertising, Microsoft is aggressively entering the online advertising business. Process for developing competitive strategy in a company If we combine the positioning framework for competitive strategy due to Porter, the evolutionary organization theoretic framework due to Burgelman, and augment these with the creation of relevant functional maps, then the resulting process of developing competitive strategy in a company can be decomposed into four stages, as follows. Stage 1: Company Analysis 1. Establish the business goals and objectives (ROI, %market share, revenue, and growth aspirations). 2. Determine the technology strategy and product market strategy for the company. 3. Define the overall development goals and objectives to align business goals, technology, and market strategies. 4. Develop the functional evolutionary maps of the markets and industry in which the company is embedded. Create functional maps (time-based evolutionary maps) for technology, product market, and manufacturing strategy of the firm. These maps will be useful in the process of assessing and creating competitive strategy. Stage 2: Industry Analysis 1. Perform the structural analysis of the industry in which the company is either an active competitor, or a new entrant, or a substitute. 2. Determine the existing competitive strategy of the company within the industry. 3. Determine the relationships between the company and the other players in the industry Stage 3: Assessment and Evolution of the company’s strategy within the relevant markets and industries 1. Using the functional maps of the overall markets and industry in which the company is embedded, as well as the company specific functional maps, assess the evolution of the company’s competitive strategy. 2. Decide on what the company’s future competitive strategy should be, and the corresponding technology strategy, product market strategy, and manufacturing strategy. Glossary Autonomous Strategy (also see induced strategy). Autonomous strategy refers to actions of individuals or small groups within the company that are outside the scope of current high-level corporate strategy. While autonomous strategy is constrained by the company’s distinctive (core) competencies, it usually (1) involves new competencies that are not the focus of the firm, and (2) results in so-called â€Å"disruptive technologies† that could change the strategic direction of the firm (Burgelman, 2002). Company Structure (vertical vs. horizontal). A vertical company is one which uses only its own proprietary technologies. A horizontal company is one which (usually because of the existence of open-standards) which does not solely rely on its own proprietary technologies, but usually uses technologies and products from other suppliers. In the computer industry, traditionally, Apple is an example of a vertical company, while Dell is an example of a horizontal company. The co mputer industry, itself, moved from a vertical structure to a horizontal structure in the 1980s (Ghemawhat, 1999). Corporate Strategy (official corporate strategy). Corporate strategy is top management’s view of the basis of the company’s success. It includes distinctive (core) competencies, product-market domains, and core values (Burgelman, 2002) Industry. The term industry, e.g., the consumer electronics industry,denotes (1) the manufacturers (or producers) and (2) the suppliers of a primary product or service, as well as (3) the manufacturers of alternative products and services that could serve as a substitute (Porter, 1980). Market. The term market denotes the buyers (or customers) of the product or service. Typically markets are segmented, for example, a two-dimensional segmentation based on the types of product (product segmentation) along one axis, and the types of customers (customer segmentation) along the other axis. The market, as represented by â€Å"Buyers† is an important part of the industry analysis in Porter’s framework. Once you’ve established the key assets and skills necessary to succeed in this business and have defined your distinct competitive advantage, you need to communicate the m in a strategic form that will attract market share as well as defend it. Competitive strategies usually fall into these five areas: 1. Product 2. Distribution 3. Pricing 4. Promotion 5. Advertising Many of the factors leading to the formation of a strategy should already have been highlighted in previous sections, specifically in marketing strategies. Strategies primarily revolve around establishing the point of entry in the product life cycle and an endurable competitive advantage. As we’ve already discussed, this involves defining the elements that will set your product or service apart from your competitors or strategic groups. You need to establish this competitive advantage clearly so the reader understands not only how you will accomplish your goals, but why your strategy will work. [pic] References Burgelman, R.A., â€Å"Strategy is Destiny†, The Free Press, New York, 2002. Chopra, Sunil, and Peter Meindl, â€Å"Supply Chain Management, Strategy, Planning, and Operations†, Third Edition, Pearson Prentice-Hall, 2007. Clark, K. B., and S.C. Wheelwright, Managing New Product and Process Development, Text and Cases, The Free Press, New York, 1993. Edwards, Cliff, â€Å"Intel†, Business Week, March 8, 2004, Pages 56-64. Ghemawat, Pankaj, Strategy and the Business Landscape, Text and Cases, Addison Wesley, 1999. Mintzberg, Henry and Bruce Ahlstrand, and Joseph Lampel, Strategy Safari, The Free Press, New York, 1998 Porter, Michael, Competitive Strategy, New York, The Free Press, 1980 Porter, Michael, Competitive Advantage, The Free Press, New York, 1985 ———————– Figure 1: A strategic view of the technology firm, showing different types of strategy Revenue ($), Growth (%), Etc. Purpose of the company Financial Strategy Competitive Strategy Market Strategy Technology Strategy Business Goals †¢ Vision †¢ Mission