Family is losing its functions Essay

Using material from Item 2B and elsewhere assess the view that, in today’s society the family is losing its functions. As stated in Item 2B, the family fulfils a number of important functions for individuals and for society, such as the socialisation of children and the stabilisation of adult personalities. However, some sociologists suggest that, in today’s society, the family is losing its importance as these functions are being taken over by other institutions; for example, nurseries have an increasingly important role in the socialisation of young children whose parents are working full-time. Functionalists see the family as a particularly important sub-system; they believe that the nuclear family is a key institution as it meets basic needs. Murdock (1949) argues that the family performs four essential functions to meet the needs of society and its members. Firstly, they offer economic support to provide the children with all the fundamental necessities they requir e in life e.g. food, shelter and water. They too give a stable satisfaction of the sex drive with the same partner, making their partner feel more safe and secure, as well as reducing the chances of getting STDs. Another purpose is reproduction of the next generation, without which society could not continue. Further to this, it also provides the child with 2 role models and so, they will feel more safeguarded of having both parents. Lastly, it socialises the young into society’s shared norms and values- without this, society would suffer from negative impacts e.g. feral children. A criticism to Murdock’s study is that it is out-dated, many sociologists argue that society has now changed and these functions can be performed equally well by other institutions, or by non-nuclear family structures. Marxists and Feminists reject his ‘rose-tinted’ consensus view that the family meets the needs of both wider society and all the members of the family. They argue that functionalists don’t review exploitation and conflict within society. Marxists argue that the family maintains class inequality and capitalism and so, the functions of the family are performed purely for the benefit of the capitalist system. They do not see the nuclear family in the same way as functionalists and believe that they ignore the ‘dark side’

The Job Description of A Budgeting Manager

One of the most important functions that budgeting accounts for is the planning function1. We will be arguing for the importance of the planning function in the overall budgeting activity and will be arguing for the many ways the budgeting planning function is coordinating with the company's strategic planning. First of all, the planning function in terms of budgeting refers to the planning activities that the company, starting with the financial department, needs to (1) determine what the company's long-term strategy is, (2) determine what projects bring most added value to the company and (3) determine what priority these projects should have. Let's refer to each of these steps in part and determine how they impact the budgeting strategy of a company. The long-term strategy for a company is essential in determining the overall objective of a company. For the long run, this may be increasing the volume of sales or increasing the market share or promoting the company's image. In any case, these differ in terms of the projects they will imply and the ways they will be affecting the budgeting strategy. For example, increasing sales will perhaps only include increasing spending on advertising and the promotion budget, while promoting the company's image may include costly promotion campaigns that will have a significant impact on the company's budgeting management. The second issue is a project portfolio management issue. The economic theory tells us that the resources are always limited, while the needs are not. Applied in this particular case, this means that we are always likely to have a greater number of projects we will wish to perform than the financial resources the company will have at a certain point. This is where the selection issue, corroborated with the budgeting strategy comes in the game. The top management, working with the financial department, will need to establish which are the projects that bring highest added-value to the company and spend the company's budget on those alone. The selection phase can only come hand in hand with a proper planning of the budgeting activity. On one hand, we have the projects the company wishes to perform, on the other, we have the budgeting restrictions. In terms of budgeting planning, the company and the top management needs to ensure that projects deriving from the current selection will also have sources of financing. An example will properly elucidate this perspective. We will simply take a software project. In the beginning, the primordial activities refer to selecting the working team and creating a project on which work will be done (following the customer's requirements). On the other hand, while the initial part of the project is strictly related to the programming stage, one mustn't ignore the fact that, after the project is completed, a tester also needs to be hired in order to test the project's performances. This means that the initial budgeting scheme will need to be created so as to include several other subsequent factors, factors that are likely to appear at a certain time in the future. Finally, the third phase of the selection phase, correlated with the budgeting procedures, involves deciding on the projects' priority. This is basically an issue of deciding which of the projects bring added value to the company and to the company's activities. This means that planning your budgeting policy also needs to consider the future plans in the company. If the company will want to develop different areas into the future, then the budgeting campaign needs to be designed so as to cover any future needs of the company. This is practically what the planning function in terms of budgeting refers to. The argumentation we have previously presented practically comes forth so as to demonstrate the close connection existing between budgeting and budget planning and the company's overall planning strategies. Indeed, the budgeting policies serve to help the company fulfill its long-term plans and projects, as well as short-termed ones. In this sense, the company planning strategy needs to be fully correlated with the budgeting planning, otherwise there will be no financial support for those plans. Among the management functions we already know about we can also include the budgeting function because, in my opinion, all the others cannot properly function without it. You cannot have a successful planning or organizing within a company without correlating these with the budgeting function, in order to obtain the realistic backup of any project. Budgeting and planning go, in this sense, hand in hand, and you cannot really have one without the other in the company.

Sport Obermeyer Minimum

Wally Obermeyer is facing a challenge in accurately forecasting the market response and demand for the upcoming season. Historically, the company founder, Klaus Obermeyer, relied minimally on forecast data, and more on intuition and artistic tastes. In comparison, his son Wally prefers to make decisions based on analytical techniques and information gathering.If Wally’s approach proves successful, it can change how Sport Obermeyer approaches its manufacturing processes, secure its position long-term as the middle- to high-end producer of skiwear, increase profits, and better meet the company’s objective of delivering matching collections to retailers at the same time and earlier in the season. Sport Obermeyer has many challenges to overcome. Forecasting is problematic since production commitments are required in November, but the bulk of the orders are not placed by retailers until the Las Vegas trade show in the following March.Also, the market trends are seasonal, cha nging frequently, and adding to the difficulty in forecasting. The company cannot postpone production completion dates due to the quota limit on importation of goods from China, where a bulk of its production occurs. Adding further complications to the manufacturing decisions, the company has a new manufacturing facility coming online in Hong Kong, and must determine what products, and how much of those products should be manufactured in each of the facilities. Issues with vendors of raw materials must be addressed.There are long lead times for some vendors, and because of that, excess inventory is maintained in the manufacturing facilities. The company must also maintain a competitive edge with the growing pressure from competitors, specifically Columbia. Sport Obermeyer has relied on a buying committee comprised of key manager to forecast production demands, and make decisions regarding production commitments. Historically, this committee has done fairly well in predicting which s tyles will be popular, and forecasting has been best for the styles on which agreement was greatest between the committee members.In order to take the greatest advantage of this committee, Wally Obermeyer is utilizing the Delphi method. This method will give Wally the opportunity to determine which members of the committee have the greatest accuracy. While it may not pay off in the immediate decisions, over several years, he will be able to determine which members’ opinions should receive the greatest weight when making production decisions. In the meantime, a decision must be made regarding the upcoming season.Wally should proceed with the minimum order necessary, one-half of the total expected demand for the season (10,000 units), to keep up with production demands. Since the minimum production quantity for a style is 600 units from the Hong Kong facility, Wally should initially only consider production of styles predicted to exceed this limit until the bulk of the order co me in following the Las Vegas show. In doing so, the risk of overproducing a style, and being forced to sell it at a deficit will be mitigated. Past data indicates the buying committee’s forecast is accurate within two standard deviations.Using these forecasts, Sport Obermeyer should delay production of the Isis, Teri, and Stephanie styles since they demand is forecasted to be low for them, and proceed with the remainder of the items in consideration (See Table 1 for quantities relating to each style). Forecasting also has difficulties due to the delay in information from retailers regarding which products are most popular. Long-term, and if financially feasible, Sport Obermeyer should consider providing retailers responsible for the majority of purchases of their good with software that will provide Sport Obermeyer with real-time data on sales of its product.By doing so, the company will better be able to predict what items are desired for replenishment orders, and greatly r educe goods sold to South America at prices below manufacturing costs. Furthermore, Sports Obermeyer can approach retailers sooner regarding replenishment orders based upon the data it has collected. If replenishment orders are received sooner, then the cost of shipment is greatly reduced since fewer will require air shipment. Lastly, the company should take an active role in influencing the demand of products it forecasts as being most popular to ensure these items are in high demand.Sport Obermeyer should pressure its sales force to promote these items by providing incentives, such as bonuses, to its personnel. If need be, the company can also provide discounts for large bulk orders to retailers. Lastly, the company should heavily promote these items via advertisements campaigns. Sport Obermeyer needs to be able to keep up with production demand, and in the case the company is overly successful in pushing the styles it predicts to be in highest demand, resulting in Sport Obermeyer needs to be able to meet the production demands generated.The manufacturing facility in China can produce goods much more cheaply than the facility in Hong Kong, but the quality and startup time are inferior to the Hong Kong facility. Obersport, a joint venture of Sport Obermeyer, is responsible for monitoring quality of the raw materials, and coordinating production Sport Obermeyer products in the Far East. Obersport should implement and expand upon its current quality control and quality assurance practices.Sport Obermeyer should pare down the variation in its products to reduce the frequency in changing manufacturing lines resulting in the facility in China being able to complete orders faster. Sport Obermeyer needs to reduce the planning time required for each season. Currently, planning for a season must start two years in advance. This is a hindrance to the company since forecasting data improves as the start of the season being planned for becomes closer. Reducing the number of vendors for raw materials, as well as the variety of styles available will shorten the time for planning.Furthermore, Sport Obermeyer will be ordering more from a few vendors, giving them greater buyer power to negotiate discounts, resulting in increased profits. Reducing the variety in the raw materials used should increase quality in addition to speeding up production. Long-term, after lead time and vendor issues are resolved, Sport Obermeyer should consider spinning off another brand within the company to be marketed separately from its current line. As costs for manufacturing are reduced due to a more streamlined production process, Sport Obermeyer will be better able to compete at the same price point as Columbia.By creating a new brand, the company will not risk reducing the reputation for quality associated with Sport Obermeyer, but will be able to compete directly with Columbia and take part of its market share. This move will increase sales for Sport Obermeyer, as well as limit the growth of Columbia. Furthermore, Sport Obermeyer should consider producing street wear for both the current high-end brand and the lower-end brand that will compete with Columbia. This will expand the markets to which Sport Obermeyer is competing in, and increase visibility of the brands since the clothing will be worn year round.Sport Obermeyer places production orders three times each season. The first order is placed prior to the Las Vegas trade show, the second is placed the week following the trade show, and the third comes at the end of the season when replenishment orders are made. Short-term, until quality and vendor issues are resolved, Sport Obermeyer should place the first order with the Hong Kong manufacturing facility. The labor in the Hong Kong facility is significantly higher than the facility in China, but the quality is better in Hong Kong.Also, the Hong Kong facility is able to produce goods faster. The second order should be placed with the facility i n China to take advantage of the markedly reduced labor costs. The third order should be placed in Hong Kong since these orders need to be produced quickly to reduce the use of expensive air shipment in lieu of using an ocean carrier. Long-term, if Sport Obermeyer elects to pursue a spinoff brand, the lower quality product should be manufactured in China to take advantage of the reduced cost of production.The Hong Kong labor force should have increased labor skills by this point, and production output should be optimized. The Hong Kong facility should continue to produce the high-end Sport Obermeyer lines. Even though the cost of production will be greater in the Hong Kong facility, the revenues generated by this facility should be greater since the high-end clothing can be offered at a higher price point. Sport Obermeyer has many problems to address, but with just a few adjustments, they can be rectified. By paring down the variety of options in the lines, quality will be increased .Forecasting is improved by implementing the Delphi method in the Buying Committee, and adding a weighted accuracy measurement to the Committee members in future seasons. Reducing the number of vendors remedies the excessively long lead times, and provides Obersport with buyer power to negotiate discounts. Providing the primary purchasers of Sport Obermeyer products with free software for tracking sales allows Sport Obermeyer to better predict replenishment orders, and eliminates much of the use of air carriers, as well as eliminates overproduction of goods that are sold below manufacturing cost.By creating a second brand, Sport Obermeyer can compete directly with Columbia, and not tarnish the image of quality associated with its current lines. Lastly, Sport Obermeyer can drive sales toward the items it predicts will be popular by offering incentives to sales personnel, large customers, and launching advertisement campaigns to also eliminate overproduction and lost revenues. Table 1 : Recommendation of order quantity for each style of Parka considered by the Buying Committee.Since orders had to be placed in Hong Kong where a 600 unit amount is needed, the styles of Isis, Teri, and Stephanie were ignored in the order placement for the first phase of production due to uncertainty of need. Style| Average Forecast| 2SD| k=1| k=0. 9675| Gail| 1017| 388| 629| 642| Isis| 1042| 646| 396*| –| Entice| 1358| 496| 862| 878| Assault| 2525| 680| 1845| 1867| Teri| 1100| 762| 338*| –| Electra| 2150| 807| 1343| 1369| Stephanie| 1113| 1048| 65*| –| Seduced| 4017| 1113| 2904| 2940| Anita| 3296| 2094| 1202| 1270| Daphne| 2383| 1394| 989| 1034| Total| | | 9774*| 10001| | I

Recommendation Letter Essay Example | Topics and Well Written Essays - 500 words

Recommendation Letter - Essay Example This letter is my formal recommendation for Kennya, who I feel would be an able and excellent candidate for the Pharmacy Degree Program you offer.   She has worked   as a pharmacy technician under my supervision for the past 18 months, and has consistently demonstrated commitment, intellectual skill and personal qualities that have enhanced the service delivery of this community pharmacy. Kennya’s oral communication is excellent, allowing her to develop a close and caring relationship with the patients here, in particular, the older and more vulnerable people. She relates not only to their medical needs, but also to their personal circumstances.   She shows great retentive abilities, attention to detail, demonstrates clear understanding, produces good written work and has the ability to analyze any situation and act on her own initiative.  I am impressed by Kennya’s ability to absorb new information and utilize it correctly and decisively.   She has already ac hieved her pre-pharmacy qualifications, demonstrating good academic and learning skills.   This means she can be trusted to carry out many tasks outside her remit, with only a basic need for checking on my part.   This shows me that her intellectual ability is above average, as is her commitment to serving the community.   Kennya is dedicated to her work and to improving her knowledge in all aspects of pharmacy, but never loses sight of the purpose of her role.   Her character is one of great compassion and understanding, she is energetic and bright and has never let colleagues or patients down in the time she has worked with me. I have observed how Kennya uses her knowledge and experience consistently to benefit all those she is involved with.   I feel that she would contribute a great deal to the program at MCPHS and would reach her goal of attaining her degree and so achieve professional status.   I have no hesitation in asking that you give serious consideration to h er application.   She would be an asset to the program and to the profession.

Enterprise Strategy Assignment Example | Topics and Well Written Essays - 2750 words

Enterprise Strategy - Assignment Example It has also presented in brief the role of an enterprise in the organization and how does it stimulates entrepreneurial learning and development Many people are encouraged to start their own business, to begin as sole proprietors and become an entrepreneur. According to the Department for Business Innovation & Skills in UK, there are 1,296,905 registered enterprises in UK as of 2008 (SME 2009) Sad to say, many of them are forced to go out of business after two to three years of operation because of failure. Failure rates have been high, and some are due to lack of capital, lack of salesmanship, technical knowledge, and up to date knowledge of production. But whatever technical reasons are there, the ability to manage comes out heavily as an end result. McFarland, (1974, p.61) said that in the United States, anybody who has the resources can start or withdraw a business because this is not controlled by the government. Accordingly, the decision to become an entrepreneur is purely a choice of an individual. McFarland noted that many entrepreneurs go into the field thoroughly unprepared and meet the economic test of survival. S ome manage to stay afloat because they do not know how much capital they have been using up and how much liabilities they have incurred. In the end, those who survive are those who have the managerial skills in business. It is an irony, as MacFarland observed, that many entrepreneurial failures occur during boom times. Reasons for that are the easy credit, high demands for the products and the general optimism on the economy. Because of these, many executives were enticed to go into enterprise business without proper planning, insufficient capital and lack of skills. Eventually, the entrepreneur suffers failure because he failed the test of economic pressures. However, despite these pressures, some firms survive and show an extreme degree of tenacity. An example is Prince Alwaleed Bin Talet, who survived

Assessing non-parametric or t tests Essay Example | Topics and Well Written Essays - 1500 words

Assessing non-parametric or t tests - Essay Example The Cronbach alpha value of HPLPII was 0.95, which is reliable and valid for study; as HPLPII has been divided into further six subscales which are health responsibility (HR), physical activity (PA), nutrition (NUTR), spiritual growth (SG), interpersonal relations (IPR), and stress management (SM). The Cronbach alpha’ individual subscale values are stated as 0.83 for HR, 0.87 for PA, 0.85 for NUTR, 0.86 for SG, 0.82 for IPR and 0.76 for SM. Second concept of Attentional Demands Survey (ADS) is valid as Cronbach alpha values stood at 0.96. Since ADS was further divided into four subscales as Physical Environmental (PE), Informational (INF), Behavioural (BEH) and Affective (AF). The Cronbach alpha for all four internal subscales was reported as 0.90 for PE, 0.91 for INF, 0.84 for BEH and 0.88 for AF. Considering all the reported statistics of Cronbach Alpha; it can be argued that all variables are valid and reliable for further testing; it should be noted that acceptance of Cron bach Alpha test statistic is 0.8 for previously tested models and 0.7 for newly tested models. After validation, it should be noted that this study is a correlational study so, obviously the next step will be to analyse the correlation between the survey findings of Attentional Demand Survey (ADS) and Health Promoting Lifestyles Profile II. The resulted correlation between ADS and HPLPII was a moderate negative correlation though all the indicators were significant at 5% level of significance as p statistics for all correlation statistics was below 0.05. After open analysis the sample was categorized into age groups. One way ANOVA test was applied to find the significance of age differences and health promotion. The result statistics revealed significant difference of health promotion between two groups of age 65-74 and age 75-84 but the age group 85 to older had no significant difference in health promotion. The One way ANOVA test statistics revealed the significance of age group d ifferences as p stood at 0.027 with the F-test statistics at 3.72. In the parametric dimension of analysis ADS was consider responsive to the nursing facility for which demographic differences such as marital status differences and gender differences were tested for relationship. Marital status differences were not significant and there was no difference in health promotion while testing their marital differences as t-test statistics for ADS was 0.42 and for HPLPII was -0.42, both t-test statistics were below 2. Similarly gender differences for health promotion were also insignificant as t-test statistic for ADS was 0.76 and for HPLPII was -1.42. Besides parametric testing, the study also opted for some non-parametric testing as attentional demands and difficulties by different age groups were specified and the study compiled the survey results and presented it in tables which was categorized in three age groups. These non-parametric analysis helped understanding the qualitative dim ension of the study. The article is actually based on the growing healthcare problems among the dwelling elders in USA and examines the barriers to health promotion among them. The elderly population of today is known as the baby boomer generation who have

Dose makes the poison Research Paper Example | Topics and Well Written Essays - 500 words

Dose makes the poison - Research Paper Example Our body itself is a combination of chemical elements and compounds. It is vital to divide the chemicals present in our environment into the good ones and the harmful ones. Moreover, also focus on how the toxic and deadly effects of the chemicals can be avoided is also of importance. The story of Strong Poison by Dorothy S. Layers revolves around a mystery case of the murder of Philip Boyes by arsenic poisoning. Harriet Vane is accused of the murder of her fiancà ©, as she is a crime novelist and knows an awful lot about the novel and all the evidence points in her direction. However, Lord Peter Wimsey is convinced of her innocence and struggles to convince the jury as well. The book discusses a great deal about the arsenic poisoning and the symptoms the victim suffers from, bringing the horrifying adverse effects of a toxic chemical under highlight. It is vital to understand what is toxic in our environment and can lead to adverse effects. A toxic substance is a substance that can be poisonous or cause health effects. Toxicity of a substance is not measured on the basis of its severity of effects; it can strike a single cell, a group of cells, an organ or the whole body. It is basically measured to the degree to which it is poisonous to biological organisms including humans. Chemicals toxicity is also dependent on the dose of the chemical, route of exposure, the duration and the number of incidents of exposure, and individual’s susceptibility. In 1500s, Philippus Aureolus brought forward the argument that a chemical can be entirely harmless or even advantageous at low concentrations but the same chemical can turn into toxic at higher levels. He stated, â€Å"All substances are poisons; there is none which is not a poison. The right dose differentiates a poison from a remedy† (Trautmann). Indeed many chemicals which are beneficial at low concentrations even essential for human health can lead

Has Organisational Culture now replaced organisational Structure as Essay

Has Organisational Culture now replaced organisational Structure as the dominant method of management control in the organisation. reflect these controls with - Essay Example Taylor and Herbert Simon are all Americans. To enable the readers to fully understand the research question, the researcher will first define organizational structure as well as the organizational culture before comparing the difference between the two management control methods. Through the process of conducting a literature review, the researcher will identify the evolution of organizational structure and organizational culture. Prior to concluding as to whether or not organisational culture has totally replaced the importance of organisational structure as a more dominant method of management control within an organisation as well as whether or not it would be a good idea to consider whether these sorts of generalizations can be applied in a global manner or whether they tend to reflect the dominance of the US experience in management theory, the researcher will seek to examine the degree of detachment from the use of the formal rules and regulations within the UK government organization. Organizational structure is the structural pattern that is created within the organization based on the importance of each employee’s role. (Mabey, Salaman, & Storey, 2001; Mullins, 1993) The main purpose of the structure is to organize the allocation of work and responsibilities so as to hasten the accomplishment of the organizational goals. With the presence of an organizational structure, it is easier for the leaders to develop a strategic plan and control the internal activities within the organization. (Mabey, Salaman, & Storey, 2001) In line with the organizational structure is the classical bureaucracies which is normally based on a set of principles of hierarchy, authority as well as organizational control. (Weber, 1981 [1945]) These bureaucracies are structured into different compartmentalised hierarchial layers to determine the significance of the employees authoritative power

The Beatles recording catalog covers a wide range, to say the least, Essay

The Beatles recording catalog covers a wide range, to say the least, from the likes of Love Me Do (1962) to Revolution 9 (1968) - Essay Example These forms of life were reflected in their production of music with Hindustani, avant-garde and Western classical influences (Young 14). This period saw the Beatles redefine the meaning of rock and roll as a form of culture. Some of the American artists, whom they admired, such as Elvis Presley, became their inspirations and role models for the younger rock musicians. Consequently, the first songs that the Beatles wrote and recorded widened the musical range as well as the expressive scope of the music genre they had inherited. They used subtle arrangements, vocal harmonies, and clever touches in production (17). Additionally, they used elemental rhythm that was characterized by drumming. It added beauty and excellence to their songs. In the wake of the student protest eruptions in France and Mexico, the Beatles gave up their roles as global leaders of an immature youth culture. Nevertheless, they continued recording and releasing new music while maintaining their popularity that has remained unshaken ever since then. Apple was their record label that was launched in 1968, with the hope of nurturing pop art. However, they only created commercial failure and chaos. Nevertheless, the band continued enjoying extensive popularity. Abbey Road, launched in 1969, became the Beatle’s most-loved and best-selling album (19). The Beatles laid the benchmark for teen idol quality. Before their arrival, the pop scene in the United States was stale. However, the Beatles blasted the pop landscape with their exotic accent and queer looks. While Paul was the cute and adorable one, George was quiet and shy, Ringo was fun and goofy and John was smart and slightly dangerous (20). Their character traits covered all teen tastes. Also, their matching â€Å"moptops†, collarless suits, and Cuban ankle boots made their appearance uniform. Different from their competition, the Beatles controlled their appearance. Despite the fact that disrespect has existed for

Sociology Essay Example | Topics and Well Written Essays - 1500 words

Sociology - Essay Example American Dream This ethos that nationally binds the United States was drafted from the United States declaration of Independence. It is rooted in creating freedom in the society. The American dream is aimed at creating freedom that achieves success and prosperity in the national endeavors. The America dream is focused on creating a full, better and richer life for all the people. This statement refers to equity in opportunity to people regardless of social divisions in the society. Given the opportunity, everyone is believed to be able to achieve, no matter their circumstances or social stratifications. The dream from the United States declaration of Independence emphasizes on equity among men and women, based on inalienable rights. Therefore, all people have equal rights to liberty, life and pursuit of happiness. This brings about equity in the society, as highlighted in the texts. Social Inequality in America American has a social inequity stratification system ranging from class, gender and politics. These factors are determined by power, which is the authority vested upon a person to make the other carry out duties, according to the rules and legislation. This power is also known as the authority that it is willingly dissipated or legitimate. At the same time, coercion or illegitimate power is the taken under force. Property is another factor of inequality that is based on one’s possession. It is generally the measure of social class. Finally, prestige marks another factor of inequality where one’s position in the society is determined (Domhoff 3). In American today, prestige is tied to the occupation one is undertaking, that is the lawyers, doctors and teacher. Normally, prestige is tied to the social class. Despite her move towards the dream, America has not yet achieved her equity in most of these areas. Up to date, America still suffers gender inequality in some areas that are characterized in the early work of Loe. Women are still treated as sex objects in some working places to date, especially in bars and restaurants (Williams 74). Despite the changes in time, the conception of a woman has not much changed, according to Loe in these places the women are â€Å"‘objectified victims’ of sexualized workplaces, but are also architects of gender, power and sexuality in such setting† (Williams 73). The general achievement of equity of women in these workplaces has never been a success. The structure of these places still treat the employed bar waitress as ‘cheerleaders’ since their work is to entertain men (Williams 75). Some employment companies still go for recruitment based on the ideology of â€Å"women jobs† (Williams 73). This job matches them due to their sex segregation. This is typically a social inequality that has rooted in many job posts in America. In addition, the dressing style expected among the women is a pattern that reveals their sex nature that Loe referred to i n the Bazoom uniform, just to make a woman sexy before men (Williams 81). Gender inequality in jobs takes some wide variations, where in some instances women are still not accepted in some jobs due to their gender. For instance, jobs like the clerical work today is majorly associated with women just like the waitress and bar attendants in the Bazoom since they need individual who â€Å"act like a woman† (Williams 82). Inequity still prevails in most places in America. The segregation in language, race and

Managing Organizational Change Essay Example | Topics and Well Written Essays - 1250 words

Managing Organizational Change - Essay Example The move was an intentional one to ensure that the organization is able to resurrect itself from a loss of market share, loss of revenues and unwitting loss of employees that may take place in case the organization undergoes an organizational decline. Downsizing in my organization led to employee and personnel reduction only. However, resources are also brought down in some other organizations. The goal is to improve the efficiency of the organization. According to Freeman and Cameron (1993), downsizing affects the way work is accomplished. The overall workforce declines when downsizing takes place and hence less number of individuals is available to do the same amount of work. The same happened in my organization. As a result of downsizing the overall work load on one individual increased. This led to burnout, lower morals and inefficiencies. Thus the change within my organization was directly related to marshalling and channeling of resources. This has also been referred to and exp lained in the IBM change story of Table 1.1. The story depicts how it is important for resources to be channeled appropriately when an organization is undergoing an organizational change. (Alexander, 2003) Reference: Alexander. (2003, Feb). From the President. Retrieved Jan 12, 2009, from Leadership in Action: http://www.ccl.org Week 2: Forum 2 Over the course of last couple of decades internet has changed the paradigms of media. News is no longer restricted and limited to print media. Electronic media has emerged on the forefront and now it is being regularly referred to by many. Its integration on the media front is also coupled with the fact that technology has embedded itself in the society today. Today’s man is more dependent on the web then he was ever before. In a recent study conducted by a firm, it was claimed that over three quarters of American adults make use of the Internet while more than half of them connect to the net through wireless connections either throug h laptops or through their handsets. Over 60% of these broadband connections are consumed at home. This in itself is indicative of the fact of the extent internet and with that how e-media has integrated itself in today’s society. I believe that both news print and online media are important in their own right though in my life I won’t deny the fact that the latter holds more significance. This is because I am always on the go and hence it becomes easy for me to read the news on my handset then piquing it down through newspapers. I very seldom read news on newspapers. Most of the time I find myself logging in on websites like nytimes.com, washingtonpost, bbc.com and cnn.com In the given article, the demise of TDI is illustrative of the growing influence of e-media in our society today. Reference: R.E.Goodin. (1975). How to determine who should get what. Ethics , 310-21. Week 3: Forum 3 Post economic down turn and recession, leadership roles and leadership perception ac ross the board has changed significantly. There are innumerable issues and challenges that confront the leaders of today, each of which is engrossing and highly intimidating. Empowerment of work forces, cultural and ethnic diversity, demands of the labor unions are some but of

Verbal Abuse against Children Essay Example for Free

Verbal Abuse against Children Essay Verbal abuse is increasingly being recognized for its negative effects (Visaing, Straus, Gelles, Harrop, p. 223-238). Subjecting children to the victimization of their mothers is a severe form of psychological maltreatment. Despite the parents attempts to shield the children from adult violence, most children witness some violence against their mothers and are likely to at least hear the violence (Phillips, Lukens, Casriel, p. 111-121). Hiding in their bedrooms out of fear, the children may hear repeated threats of injury, verbal assaults on their mothers character, objects hurled across the room, suicide attempts, beatings, and threats to kill (Rosenberg, p. 85-89). Such exposure arouses a mixture of intense feelings in the children that include fear that the mother will be killed, guilt that they could not stop the violence, divided loyalties, and anger at the mother for not leaving (James Madison University, Center for Child Abuse Education, p. 114). Even a single episode of violence can produce posttraumatic stress disorder in the children (Stullman, Schoenenberger, Hanks, p. 32). Thus, the father who batters is at risk for emotionally traumatizing the children because he already has a history of doing so. The immediate problems of the children can be divided into two broad categories: (1) internalized problems such as withdrawn or anxious behavior and (2) externalized problems such as aggressive and delinquent behaviors. Some children show both types. In one study three-fourths of the children of battered women exhibited clinically significant behavioral problems, compared with only 13 percent of those in a control group (Jaffe, Wolfe, Wilson, Zak, p. 142-146). The impact on behavior may be greatest for children who are exposed to the most conflict between the parents and are treated punitively. The effects may differ by gender, but the findings are not consistent (for example, Davis Carlson, p. 278-291). The children may also develop hearing, speech, and learning difficulties (Penfold, p. 108-114). Teenage children may turn to alcohol and drug use. The ability of the children to solve social problems is also impaired. The children tend to do poorly on measures testing their understanding of social situations and the thoughts and feelings of others and are less able to deal with an emergency (Jaffe et al. , p. 45). Exposure to violence is likely to teach male children how to be abusive throughout their lives, thus contributing to the intergenerational transmission of violence. Factors That May Affect Risk of Abuse Besides knowing which parent is most at risk for physically or emotionally abusing their children, there may be important factors that raise or lower the level of risk, including parental separation and parents traumas, psychological profiles, and participation in treatment. Parental Separation Many men who batter cling to the marital relationship after separation and continue to harass and physically abuse their partners. Some wives are killed during separation in the context of custody disputes or visitation (Saunders Browne, p. 379-402). An abuser may try to control his partner by having the children act as spies, or he may lash out at the children if he views his partner and children as a single entity and feels vengeful (Chesler, p. 67). Wallerstein and Kellys study of divorced families illustrates how men who batter try to convince the children and the court that their partners are either morally bankrupt or emotionally unfit to continue mothering (pp. 28-29). The children will also be exposed to more violence if either partner is a victim or offender in a new relationship. However, the risk of exposure differs for men and women. It does not seem, as practice lore has it, that battered women are likely to find a new abuser. Pagelow (p. 65) found that only 33 percent of the battered women in her study were in more than one violent relationship. The national norm of all marriages that have experienced violence at some point is about the same-28 percent (Straus, Gelles, Steinmetz, p. 62-64). On the other hand, abusers may have more than a 50 percent chance of battering in a new relationship, with rates ranging from 57 percent to 86 percent in two nonrandom studies (Pagelow, 76). Parents Childhood Traumas Perhaps the most common truism among those trying to determine the potential for child abuse is that being abused as a child is a strong predictor of becoming a child abuser. In the past it was believed that because both battered women and their partners were likely to have been abused in childhood, both have about the same chance of abusing their children. Recent evidence, however, suggests that two pieces of practice lore need to be modified. First, all studies do not find that either battered women or their partners are more likely to have been abused in childhood. Hotaling and Sugarman (p. 101-124) found that four out of 13 studies they reviewed did not confirm the notion that battered women or men who batter were abused in childhood. A more consistent risk marker was for the men to have witnessed violence between parents (14 out of 16 studies). When witnessing violence is combined with being abused in childhood, an especially potent risk factor is created for becoming a woman and child abuser (Straus et al. , p. 68-95). Second, it was also believed that most parents who abuse their children were abused themselves. There is a positive relationship between being abused and becoming an abuser, but the relationship is not as strong as was once thought (Jayaratne, p. 23-43). Kaufman and Zigler (p. 186-198) concluded from their review of studies that about 30 percent of those who were abused as children were likely to become abusers. If a broader definition of abuse is used, as in the national study by Straus (p. 213-234), only 15 percent of those who were frequently abused by their parents abused their own children. Of those who were not abused, 8 percent abused their children. Bowker, Arbitell, and McFerron ( p. 158-175) concluded from their survey of battered women that male dominance and violence against wives, especially marital rape, was a much more important link to child abuse by fathers than the fathers childhood victimization. When there is a link between childhood victimization and later abuse, there is some evidence that it is stronger in men. Miller and Challas (p. 29-43) found that of those who were abused as children, 31 percent of the men and 19 percent of the women were rated as being at high risk for abusing their own children. Parents Psychological Profiles Psychological evaluations are frequently ordered in contested child custody cases, and social workers need to know the strengths and limits of these evaluations. In general, the prediction of dangerous behavior is best made from past violent behavior and not from general personality traits. Wolfe (p. 462-482) concluded from his literature review that underlying personality attributes and traits have been unable to detect any patterns associated with child abuse beyond general descriptions of displeasure in the parental role and stress-related complaints (p. 465). A more relevant indicator of risk for child abuse is the Child Abuse Potential Inventory (Milner, p. 41-54). Men who batter have been shown to score higher on this measure than nonbatterers (Milner Gold, p. 169-172). In custody and visitation evaluations, the measure needs to be supplemented with interview and background data (Saunders, p. 208-235). Evaluations are often complicated by the ability of many of the men who batter to function well while their partners appear pathological (Ayoub, Grace, Paradise, Newberger, p. 191-207). Despite appearances, the men are likely to have longstanding, severe problems such as alcoholism and emotional wounds from childhood traumas. A large proportion has personality disorders. Hotaling and Sugarmans (p. 101-124) review did not find similar chronic problems in battered women. There is evidence that if the women develop psychological problems, they are the direct result of battering. The nonviolent tactics of men who batter are also likely to contribute to the womens emotional turmoil. Many tactics are similar to those used against prisoners of war. The men often isolate the women; blame them for the abuse; falsely accuse them of infidelity; and put labels on them like crazy, stupid, or whore (Walker, p. 34). The men may also make death threats, especially if the women try to leave. When a woman learns that her partner wants custody of the children, her stress can become overwhelming, because her goal in leaving her partner is often to protect the children. Posttraumatic stress disorder and depression are the likely outcomes of such an ordeal. When Rosewater (p. 86-96) administered the Minnesota Multiphasic Personality Inventory to a group of battered women, their average profile showed features consistent with borderline personality disorder and schizophrenia. She interpreted the findings, not as a sign of severe psychopathology, but as an indication that battered woman can be severely traumatized by the battering and fear of its recurrence. Therefore, using psychological test scores and courtroom behavior to assess the parenting abilities of battered women must be done with extreme caution. Crites and Coker (p. 9-13) noted that the battered woman may appear in court to be unstable, nervous, inarticulate, or angry because of her ordeal. The author worked on a case in which the judge interpreted a womans attempt to find safety as pathological, stating that she had shown evidence of impulsivity and poor judgment because of her recent precipitous move to another state. Crites and Coker (p. 40-43) noted that therapists as well as judges make such interpretations. Another symptom-flat affect-may also works against the women. Women may develop such an affect to guard against painful memories. Practitioners, attorneys, and judges may mistakenly assume that the womans apparent indifference to danger means that she accepts it, rather than seeing that she is suffering from psychic numbing. A battered womans psychological state can certainly affect her ability to parent. For example, battered womens depression appears to be related to their childrens problems as much as the childrens exposure to violence (Wolfe, Jaffe, Wilson, Zak, p. 657-665). If severe, maternal depression can lead to neglect of the childrens needs. A major goal in assessment is to determine the likelihood that the depression will lift once the woman is safely away from her abuser. Some battered women turn to drug and alcohol abuse to cope with their depression, pain, and fear. The goal of assessment is to determine the prognosis for recovery once she is safe from violence. Drug and alcohol abuse by women makes it easier to see them as bad victims. When drug or alcohol abuse or depression impairs a battered woman, she may be held liable for her partners abuse of the children, an extension of societys stereotype that places mothers in the role of ultimate protector of their children. Just as in cases of father-daughter incest where mothers are sometimes veiwed as complicit, many courts contend that women could have stopped their partners from physically abusing the children (Crites Coker, p. 42). Schechter (cited in Suh, 1989) suggested that victims can put us in touch with our own vulnerability, and some who cant tolerate those feelings find it easier to turn them into anger at the victim (p. 63). Practitioners are not immune from these feelings. They may see the woman as passive, uncooperative, and ambivalent rather than as caught between the fear of battering and the agencys requirements for child protection. An innovative program described by Schechter and Gary (1992) provides advocacy for battered women in a pediatric setting, which is ideal for helping battered women because they often seek help for their children before seeking it for themselves. A peer advocate works with the woman to help keep her and her children safe. Parents Participation in Treatment If interventions could efficiently and effectively reduce the child abuse potential of either or both parents then custody and visitation recommendations could be made based on the completion of treatment or other interventions. Unfortunately, some interventions used with these cases are ineffective or even hazardous for battered women and their children. For example, the unqualified application of family systems theories and mediation models can be risky. Many of these models assume equal power among family members and equal responsibility for causing family problems. Abuse is often seen as arising from poor communication or alcoholism. If divorce counselors use such models, battered women and their children may be placed at greater risk for abuse. The patriarchal structure of the family is supported, and consequently there is an increased risk of woman abuse. Furthermore, if conjoint sessions are used, the mother or children may reveal continued abuse or a desire for the father to leave the family. The family may be left unprotected from the mans rage after the counseling session. Divorce mediators may apply some of these same principles. Walker and Edwall (p. 127-154) concluded that abusive men are unlikely to be able to put their childrens needs ahead of their own. Mediators may believe that they can equalize the power difference, but battered women carry with them a terror that makes them prone to give in. Also, mediation offers no enforcement of agreements, and in many states what is revealed to the mediator is not held in confidence. Some mediators seem to provide more safety because they have separate assessment and mediation sessions (Zemmelman, Steinman, Knoblauch, p. 32-37). Magana and Taylor (p. 50-64) provided special training and protocols for mediators and found that separate sessions and protective measures were more likely in the most violent cases. Out of concern for power and safety issues, some states are now exempting battered women from required mediation. A number of guidelines are available for mediators and judges to help them screen for abuse and decide on a course of action (Crises Coker, 9-13). Innovative treatments to help men who batter end their violence have not been evaluated extensively. Social workers and their clients need to know that recidivism rates after treatment can be fairly high, ranging from about 15 percent to 40 percent more than one year after treatment (Saunders Azar, p. 481-545). In addition, many men leave treatment prematurely even when they are legally mandated to attend. Also, psychological abuse by many of the men is not reduced after treatment (Saunders Azar, p. 481-545). Treatment programs for men who batter usually do not contain material on parent training. However, many methods of anger management for men who batter are the same as those used to help abusing parents (for example, Schinke, Schilling, Barth, Gilchrist, Maxwell, p. 13-26). Thus, men who batter have the potential for transferring the same skills to their parenting role. There is some evidence that the men have lower child abuse potential after treatment. A study by Stacey and Shupe (p. 64) showed a substantial reduction in actual child abuse by men as reported by their partners. Problems with Visitation and Joint Custody Joint custody laws are now in effect in most states to encourage or mandate the sharing of parental responsibilities. Joint custody has many advantages when a woman has adequate financial resources and a partner who is nonabusive and supports her as a parent. However, many practitioners are having second thoughts about joint custody because of financial hardships for women and the risk of renewed trauma to the children (Geffner Pagelow, p. 151-159). Elkin (p. 18-24) listed the types of parents for whom joint custody is appropriate. These parents are committed to making joint custody work out of love for their children, are willing and able to negotiate differences, and are able to separate husband and wife roles from parental roles. These are rarely the characteristics of domestic violence cases. Emery and Wyer (p. 472-480) have contended that joint custody is contraindicated when there has been family violence. Elkin (p. 18-24) listed contraindicating factors that often coexist with wife abusefor example, a history of alcohol or other drug dependency, the parents inability to agree on childrearing, and family disorganization. One problem with joint custody is that battered women may agree to it because they are coerced and do not want to look bad in a sole custody trial. Conclusion Recent legislation reflects the growing reservations about joint custody. Most states now have statutory clauses to take marital violence into account when making custody decisions. It is hoped that such laws will counter the trend that places financial ability and two-parent families as the highest standards in awarding custody. Men who batter are likely to win custody with these standards because they usually have higher incomes and remarry sooner than their ex-partners. Joint custody and visitation allow abusers continued contact with their partners. Supervised visitation may provide important father-child contact that prevents idealization of the absent father. It is ironic that women were once told to fabricate cruel treatment by their spouses to obtain a divorce, yet today, cruelty to women and children is often not believed, especially mothers charges of child abuse in the midst of a custody dispute. Abuse may be revealed only after separation because the mother feels safer reporting it then, or abuse may start in the years immediately following separation because it is a very stressful time. Many battered women face a catch-22; when the abuse spills over to their children, they may seek shelter or flee to another state, yet they may be punished for doing so. One judge stated that a womans extensive contacts with a battered womans shelter meant that her environment was characterized by self-interest and excessive liberalism (Fredericks, 1986, p. 2). Works Cited Ayoub, C. C., Grace, P. F., Paradise, J. E., Newberger, E. H. Alleging psychosocial impairment of the accuser to defend oneself against a child abuse allegation. Child and Youth Services, 15 (1991), 191-207. Bowker L. H., Arbitell, M., McFerron, J. R. On the relationship between wife beating and child abuse. ln K. Yllo M. Bograd (Eds.), Feminist perspectives on wife abuse (pp. 158-175). Beverly Hills, CA: Sage Publications, 1988. Chesler, P. Mothers on trial: The battle for children and custody. Seattle: Seal Press, 1987. Crites, L., Coker, D. What therapists see that judges might miss: A unique guide to custody decisions when spouse abuse is charged. JudgesJournal, 27(2) (1988). 9-13, 40-43. Davis, L. V., Carlson, B. E. Observations of spouse abuse: What happens to the children? Journal of Interpersonal Violence, 2(3) (1987), 278-291. Elkin, M. Joint custody: Affirming that parents and families are forever. Social Work, 32 (1987), 18-24. Emery, R. E., Wyer, M. M. Divorce mediation. American Psychologist 42(5) (1987), 472-480. Fantuzzo, J. W., Lindquist, C. U. (1990). The effects of observing conjugal violence on children. Journal of Family Violence, 4, 77-94. Geffner, R., Pagelow, M. D. Mediation and child custody issues in abusive relationships. Behavioral Sciences and the Law, 8 (1990), 151-159. Hotaling, G. T., Sugarman, D. B. An analysis of risk markers in husband to wife violence: The current state of knowledge. Violence and Victims, 1 (1986), 101-124. Jaffe, P. G., Wolfe, D. A., Wilson, S. K. Children of battered women. Newbury Park, CA: Sage Publications, 1990.

Nationalisation of Royal Bank of Scotland

Nationalisation of Royal Bank of Scotland Purpose The purpose of this report is to discuss the change in Royal Bank of Scotland indicated by the companys nationalization in 2008. Shareholders lost the most part of the company in favour of the government and management of the bank had to be changed. The purpose will be fulfilled by analyzing the process of nationalization and its implications for RBS. Theoretical literature provides a lot of models of change management and strategic management. For example, Ansoff (1987) model suggests four quadrants of strategy. Companies can grow by penetrating the market and winning larger market share while competitors share will shrink. Firms can also develop their key products which are their strength and this will be a strategy for expansion. The third Ansoffs (1987) strategy would be to diversify the products and operations to achieve growth. Finally, the company can choose to pursue market development which is entering new geographical areas or new niches that will help generate higher revenue. The case of RBS represents this final model of market development. The banks pursued the new market of mortgage backed securities in the US through acquisition of ABN Amro. This strategy appeared to be unsuccessful and led the bank into a position where accounting losses reached tremendous value of over 30 billion pounds in 2008 and led to national ization of the bank by the UK government. Company Overview Royal Bank of Scotland Group plc is a banking corporation with its branch Royal Bank of Scotland (RBS) that is spread around United Kingdom with almost 700 sub-branches, located in Scotland, England and Wales and is one of the largest banks in UK. It was founded in 1727 and is the first bank introducing overdraft availability to its clients. Since its foundation, RBS expanded greatly, with big number of acquisition deals, such as its acquisition of NatWest Group in 2000, First Active (Ireland), Charter One (USA) , Churchill Insurance (UK) and ABN Amro (Netherlands) in 2007 (House of Commons Treasury Committee, 2008). The Royal Bank of Scotland still uses a privilege of printing its own banknotes. Until 2009, it was one of the main shareholders of the Bank of China, but had to sell its shares after the global financial crisis impact. RSB is still in the list of worlds largest banks, being on 6th position in 2003, 10th in 2007 and 19th in 2008 (Financial Ranks Online, 2009). Financial performance of RBS was changing in the last years. In 2005 group operating profit rose by 16%, with total dividend for the year increase by 25%, with capital and earnings increase. During 2006, RBS showed great results and continuing growth, with increased dividends by 25% with total income growth by 10%. With unstable position in the market and in global financial system, RBS had some problems, but managers were working toward control of the situation, however growth of the operating profit decreased by 9%, earnings per share by 18% and return on equity 19.9%. The company faced big net losses of around 7.9 billion pounds. In the 2009 bank entered hard times with reorganization in management field and in structure. (RBS Annual Report, 2005-2009). Due to changing situation in the global economy, in 2008 Royal Bank of Scotland announced its greatest loss in the banks history with the amount of 692 million pounds that was connected to unhealthy loans and 71 billion pounds as a result of incorrect deal of acquiring ABN Amro (Bradley, 2009). Prior to the global financial crisis RBS have had great profit margins and was a respected brand with long history. And it is necessary to mention that the bank was at great position in terms of facing crisis, with little impact until the decision of getting ABN Amro, which brought various problems. In 2008-2009 UK citizens were under shock of the fact that one of the largest UK banking system representatives had incredible losses and unpredictable future. At this position RBS had one way to survive seek government support. However not all UK banks suffered from consequences of global financial crisis, which can be connected with accurate and carefully planned management strategy. RBS have got some capital of about 2 billion pounds from selling its share in Bank of China and after giving up part of Linea Directa, a Spanish insurance company for about 4.5 billion pounds. However, it did not help to make a radical change of the situation (Bradley, 2009). According to Hester, current Chief Executive of the RBS Group (2009), great losses of the Group had nothing to do with management of businesses as their performance was profitable. However problems appeared mainly in two divisions Global Banking Markets and Asia Retail Commercial Banking. Their profits were crushed by market and credit losses, within fast changes in the economic conditions. At the same time top managers of the Royal Bank of Scotland were facing risks of acquisition and had limited time to make decisions. Global financial crisis had its impact in different countries, affecting economies and markets especially in terms of exchange rates. Here, decrease in sterling exchange rate had an influence on further performance of the bank and changing market position intensified the situation (Hester, 2009). In spite of the fact that financial situation became critical for many banks, RBS was still having serious and stable business. Top management was taking steps to recover from crisis consequences, in order to return capital and provide stable ground for future operation such steps included applying to government support. The strategic plan for recovery was supposed to be finished in 2009, meanwhile the focus is on long-term customer franchises, quality and profitability. Royal Bank of Scotland can be an example of the fact that in terms of global financial crisis even big and powerful organisations can face danger. It is the biggest UK company that suffered from the global economic crash. Today it is still far from recovery, having bad loans and loss before tax in the beginning of 2009 was around 44 million pounds. From the forecasts, 2009 and 2010 will still be challenging for the RBS with main focus on debt returns. Now, after current management revision, directors of RBS are more confident of future recovery and success (The Telegraph, May 2009). New Chief Executive supports the position that management must stay calm and take steps for a slow but effective recovery, rather than fast and wasting strategies in order to save more that to spend (Murchie, 2009). However, human resource management of the bank is not so confident and planning to shorten around 9000 jobs, which is about 20%. It is believed that this action will help to decrease costs of around 3 billion dollars (Global Crisis News, 2009). Moreover, RBS represented the worst results in the market, being at the bottom of banking sector in September 2009 (Frei, 2009). Aspects of Nationalisation According to Encyclopedia Britannica, nationalisation is â€Å"alteration or assumption of control or ownership of private property by the state† (Encyclopedia Britannica, 2009) with several variations in the types and motives. Nationalisation usually appears through assets or shares taken over, and this can help the company to continue its business but under control of the government. If the company is nationalised by government it can continue to produce and operate, getting some revenue and have some returns on shares. Usually this process is followed by structural reorganisation, including traditional administrative strategy and style of control (Backhaus and Wagner, 2004). As a fact, nationalisation can come in the form of expropriation, if the previous owners do not get compensation for the business and in the form of rescue tool or governmental support. Not every company can get such support; it is usually a privilege of the companies and corporations that have national importance and heritage. There is a number of examples in the UK history of nationalisation, which helped to reorganise the structure of the company as well as to get financial support (Floud and McCloskey, 1994). It is believed that nationalisation started in the UK in 1908 after the establishment of Port of London Authority with the necessity of production control (Beardshaw and Ross, 2001). Some researches mention negative effects of nationalisation, pointing that it can damage economy and banking sector. One of the problems is decreasing competitiveness, especially in banking sector (Lee, 2007). Also, financial institutions and government avoid participating in management as it can lead to further recalls of nationalisation. And when the company fails to use management as an appropriate tool, the chance of mistake gets bigger with a cause of future nationalisation (Cuthbert and Dobbins, 1980). Mainly, nationalisation has political or economic aspects and motives. When government has power to control specific corporations and their production as well as financial position, it can use the company as an instrument to correct economy. In addition, government can provide more accurate and efficient capital and assets diversification. If the company is fully nationalised, government becomes the owner of the business and has to deal with its problems and debts. Nationalisation is connected to economy, here in order to have more attractive economy, government trying to stabilise financial system through bad assets escape. There are still debates around the necessity of nationalisation and its problems. On the other hand, there is a view that this process must have temporary term, and government acts more as guardian of the company or bank for the hard period. However, one must consider that the process of nationalisation must be done correctly and carefully, with revision of all advantages and disadvantages (Richardson, 2009). Looking at the advantages of the nationalisation first comes its ability to save the company or in our case the bank from heavy and senseless assets, which were collected over the time and are representing thread of bankruptcy. This will include separation such assets from the business allowing operating more efficiently. Unnecessary assets then can be put for sale or managed by another organisation and the bank, free from problematic sectors can continues to operate. In addition, nationalization can help to restructure top management, getting rid of dilettantish approach of operating the business (Richardson, 2009). RBS is also supporting this fact and according to Montia (2009), is now selling some of its asset management business with managed capital of 30 billion pounds. In addition, it is possible that RBS will have to sell more of its business and even at the very low price that is now at the market. It is also a part of the Chief Executives recovery plan for the RBS to separa te troubled divisions from working ones with further selling of non-core parts of the business (Bradley, 2009). Without considering the advantage of nationalisation, government can continue to give money support to the banks that are big and important for the economy, but this can create the situation, where nothing will be changed and achieved. Government support can give a privilege of a competitive advantage, for example, Northern Rock could cut its prices in mortgages and insurance and attract new customers. Among disadvantages of nationalisation is management problem. In reality it is very difficult to find right and appropriate human capital for each bank in order to manage them properly. Still there will be a chance of risks regarding new borrowings, credits and market position. And these risks are now to be taken by the owner. Again the problem of unnecessary assets appears and banks need to get rid of then, basically on very low prices. In this situation market will have clear advantages of nationalisation, while banks will suffer. In addition, nationalisation is very challenging to the government. It must find labor force and money to finance the process. Future performance of the company also depends on who will be in charge could be government itself or another managing company (Richardson, 2009). In order to avoid afterward problems, other options and decisions must be revised before the final decision of nationalisation. The company must stay efficient and respond to the market and global changes in time. Management must stay open and react quickly in order to avoid critical point. Change Process: Nationalisation of RBS In the beginning it is important to discuss global economic situation which caused problems in RBS and necessity of taking radical directions, including nationalisation. UK banking sector was under pressure of economic crisis 2006-2009 and is still recovering. It all started from the US sub-prime mortgage crisis and reached the rest of the world at the beginning of 2007 with increasing debts. Most of all crisis hit banking sector, central banks and international banks worldwide. As a result the Bank of England had to decrease interest rates, and all banks were under risk of failure (Rayner, 2008). Current crisis was named the worst for the last 75 years with negative effects on many types of businesses and customers expectations (Altman, 2009). During this time period management was facing great challenges, especially risk management. In addition, it is obvious from current crisis practice that risk management can help to win the race and using various models and strategies matters (Varma, 2009). Spreading from United Stated over Europe and UK crisis attacked banking sector. UKs economy is connected to the US through trade and loans and borrowings. As a result of the continuing bankruptcy of banks, some tried to avoid it through help request from government. The first bank that was fully nationalised in UK is Northern Rock, followed by the Lloyds Banking Group with partial control from the government. Some researchers put nationalisation under meaning of rescue, and as a fact not all banks or companies were getting such rescuing package from the UK government. In the case of Northern Rock, decision was made according to the point that this bank is special and its failure can cause growing instability in the UK banking sector (Tomasic, 2008). This also can be true about the Royal Bank of Scotland as it is bank with great history, representing Scottish nation as part of Britain, with its own printed banknotes and heritage. In spite of the fact that many banks across the world were put into critical situation, having choices of selling just assets or banks itself, not many were rescued (Woods, Humphrey, Dowd, Liu, 2009). In the report of the House of Commons Treasury Committee (April, 2008) it is discussed that in October 2008 RBS introduced new plan of rescue with capital amount of 20 billion pounds, however, shareholders were getting unattractive returns and government had to rescue RBS through acquisition of major part of its shares. At that time point nationalisation was inevitable in relation to future life of the RBS. Looking at the managerial problems that caused such consequences it can be pointed that RBSs top management along with its prior Chief Executive, Sir Fred Goodwin was taking over optimistic decisions as well as misunderstanding of the critical situation. Wrong decisions were made due to fast process of the economic worsening in UK and globally. According to Hester, RBS was suffering from great downturn due to prior decisions. In addition wrong risk management strategies that were adopted at that time made even worse, in particular control issues. It seems that RBS had a great balance sheet for a long time period and was not prepared for immediate change. In 2007, RBS made a crucial decision of taking over ABN Amro bank, in cooperation with Fortis and Santander banks, this resulted in RBSs independence of private organization. Acquisition of the ABN Amro was a wrong step to take in the thread of economic crisis which made RBS unable to finish its strategic plan. Newly formed group was defenseless in the worsening situation of market changes (House of Commons Treasury Committee, 2008). The step of huge expenditure, acquiring ABN Amro in wrong time, could have been avoided by managers of RBS. Even more, loss of around 72 billion Euros intensified critical situation. Managerial decisions of this acquisition were made without disclose of credit and asset problems in ABN Amro prior to the deal. In addition, this decision was influenced by shareholders, here 94.5% of them agreed on acquisition and it may appear that they pressed top management to finish the deal. However, RBS directors and top managers agreed about the deal with unanimity. Consequence of this deal is big loss in 2008 of around 30 billion pounds instead of assumed profit. The change associated with acquisition of ABN Amro was a representation of Ansoffs (1987) market development strategy. RBS attempted to expand into the US market geographically and in addition the company attempted to profit from dealing with US mortgage backed securities. However, the failure of the strategy caused the banks to suffer losses and request the help from the government which acquired the shares of the business. The process of nationalisation of the RBS began with basic rescue program. In October 2008, RBS started new strategic program in order to increase capital. One of the solutions was to offer ordinary shares at a price of 65.5 pence per share. The offer consisted shares for 15 billion pounds. HM Treasury has got around 12% for 5 billion pounds and later on around 57.9% of shares were acquired by the Government. Decisions that were made by RBS and Government were directed to the achievement of more stable bank position and additional resources for strength and further capital enlargement. Government and the bank deny that there was a strategy of total nationalisation and when financial position of RBS will be stable, it will again be under private ownership (Webster, 2008). It can be argued that this nationalization is an example of emergent change rather than planned strategy (Whittington, 1993). Emergency was caused by the high dependency of the bank on the inflow of cash for sustaining its operations. Whittington (1993) proposed four basic approaches to strategy. These can be classified as classical, systematic, evolutionary and processual. Classical approach suggests that the companys strategy would be to maximize profit. Evolutionary approach suggests that the environment will select the strongest businesses. The systematic approach suggests that social environment will determine business strategy. The change in RBS is processual because it implies that the company consists of different stakeholders who have their own interests and ambitions. The goal of the management is to satisfy the interest of each stakeholder. If RBS was not nationalized and this changed was not made, the society, employees and even shareholders would suffer negative effects. However, it can be argued that the nationalization might have hurt shareholders even more because the value of their equity has gone down as the share price plummeted. PEST Analysis of RBS The change in the organization connected with the process of nationalization can be reflected in the PEST analysis of the company: Political Factors The Ownership of the bank is changed in favour of the UK government; Bail out was done out of the UK government budget; Support of the government will have positive effects on financial matters; Governments support will cause managers to act in the interests of the government rather than shareholders. Economic Factors Interest rates declined; so demand for lending can rise; Financial Crisis in the UK and the world may further deteriorate performance of the banks and additional capital may be required from the government. Social Factors The change in the bank is also connected with restructuring of the company and lay offs; Rising unemployment is a negative consequence of business failures such as RBS. Technological Factors Technologies are constantly improving and this facilitates the banking business of RBS because some costs are being reduced and the work is being optimised; However, since the ownership of the company changed from shareholders to the government, management will be rather interested in meeting the objectives of the government rather than optimising the work with new technologies. Conclusion Royal Bank of Scotland is now almost entirely owned by British government around 70%. Today, RBS is among first banks to enter new program named asset protection plan. In 2009 RBS had suffered of worst loss of about 24.1 billion pounds and adopted plan of survival. Some analysts point that as the RBS is not fully nationalised it can still face the risks and fail to satisfy investors expectations. As resent investors rate increased with great returns there is number of requests to have RBS fully nationalised (Werdigier, 2009). It is hard to judge whether RBS could have avoid nationalisation in the situation when it is hard to turn back and see other choices. However, there were some managerial mistakes that could have been avoided. Poor change management was not ready to face difficulties and get over them. Besides the acquisition of the ABN Amro that was already discussed, there was another managerial mistake of continuing dividend increase after the change in earnings that were decreasing. Trying to attract new investors with high dividends and please current shareholders, management put the business under risk of failure. After the ABN Amro deal, this, along with unhealthy assets that were not sold in time had lead RBS to the final step of nationalisation. Being attractive for investors and shareholders for a short time period RBS created consequences where investors of the company became most affected by nationalisation. Prior to the crisis RBS was a profitable company with attractive position. Later on there was a decrease of the UK shares market and dramatic drop in RBS share prices. Overall at the point that RBS entered in 2008, nationalisation seems to be the last chance of survival. It can give some extra time to make new strategic plan and to recover from the financial instability. There is still a chance for RBS in the future to become profitable, independent and private company. References Altman, R.C. (2009) The Great Crash, 2008 , Foreign Affairs, January/February [Online]. Available at http://www.foreignaffairs.com/articles/63714/roger-c-altman/the-great-crash-2008# [Accessed 27 October 2009]. Ansoff, I. (1987) Strategic Management, New York: Wiley Backhaus, J.G., Wagner, R.E. (2004) Handbook of public finance, Birkhà ¤user, pp. 554. Beardshaw, J., Ross, A. (2001) Economics: a students guide, Pearson Education, pp.740. Bradley, J. (2009) ‘RBS tipped for  £1.5bn Profit a Year After Crash, The Scotsman, July 19, [Online]. Available at http://business.scotsman.com/business/RBS-tipped-for-15bn-profit.5473605.jp [Accessed 29 October 2009]. Cuthbert, N., Dobbins, R. (1980) ‘Managerial Participation by Pension Funds and Other Financial Institutions, Managerial Finance, Vol.6, 3: 43-48. Encyclopedia Britannica (2009) ‘Nationalization, [Online]. Available at http://www.britannica.com/EBchecked/topic/405796/nationalization [Accessed 28 October 2009]. Financial Ranks (2008) ‘Worlds Largest Banks 2008 Update, [Online]. Available at http://financialranks.com/?p=69 [Accessed 27 October 2009]. Floud, R., McCloskey, D.N. (1994) The Economic History of Britain since 1700 3 volume set, Cambridge University Press, UK, pp.400. Frei, E. (2009) ‘RBS leads 100, London banking sector lower, Finance Markets, September 21, [Online]. Available at http://www.financemarkets.co.uk/2009/09/21/rbs-leads-100-london-banking-sector-lower/ [Accessed 29 October 2009]. Global Crisis News (2009) ‘Royal Bank of Scotland to cut 9000 Jobs, April 7, [Online]. Available at http://www.globalcrisisnews.com/europe/royal-bank-of-scotland-to-cut-9000-jobs/id=775/ [Accessed 29 October 2009]. Hester, S. (2009) ‘Group Chief Executives Review, RBS Annual Report and Accounts 2008, [Online]. Available at http://www.rbs.com/microsites/gra2008/gce_review/index.html [Accessed 27 October 2009]. House of Commons Treasury Committee (2008) ‘Banking Crisis: Dealing With the Failure of the UK Banks, 7th report of session 2008-2009, April 21, [Online]. Available at http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/416/416.pdf [Accessed 27 October 2009]. Lee, Kam-Hon (2007) ‘Chinese Banking in Asias Market Economies, Marketing Panoramic Review, Vol. 2: 24-26. Montia, G. (2009) ‘RBS to sell asset management business, September 28, [Online]. Available at http://www.bankingtimes.co.uk/28092009-rbs-to-sell-asset-management-business/ [Accessed 29 October 2009]. Murchie, K. (2009) ‘RBS boss fears ‘lost decade, Finance Markets, September 13, [Online]. Available http://www.financemarkets.co.uk/2009/09/13/rbs-boss-fears-%e2%80%98lost-decade%e2%80%99/ [Accessed 29 October 2009]. Rayner, G. (2008) Financial crisis: Stock markets across world fall amid emergency bank rescues, The Telegraph, 08 October, [Online]. Available at http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3160869/Financial-crisis-Stock-markets-across-world-fall-amid-emergency-bank-rescues.html [Accessed 27 October 2009]. RBS Annual Report and Accounts (2005) [Online]. Available at http://www.shareholder.com/visitors/dynamicdoc/document.cfm?CompanyID=RBSdocumentID=1108PIN=209446200resizeThree=noScale=100Keyword=type%20keyword%20herePage=6 [Accessed 27 October 2009]. RBS Annual Report and Accounts (2006) [Online]. Available at http://www.rbs.com/microsites/gra2006/default.asp [Accessed 27 October 2009]. RBS Annual Report and Accounts (2007) [Online]. Available at http://www.rbs.com/microsites/gra2007/index.asp [Accessed 27 October 2009]. RBS Annual Report and Accounts (2008) [Online]. Available at http://www.rbs.com/microsites/gra2008/index.html [Accessed 27 October 2009]. Richardson, M. (2009) ‘The Case For and Against Bank Nationalization, VOX, [Online]. Available at http://www.voxeu.org/index.php?q=node/3143 [Accessed 28 October 2009]. The Telegraph (2009) ‘RBS expects bad loans to mount in 2009, May 8, [Online]. Available at http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/5294644/RBS-expects-bad-loans-to-mount-in-2009.html [Accessed 29 October 2009]. Tomasic, R. (2008) ‘The Rescue of Northern Rock: Nationalization in the Shadow of Insolvency, Corporate Rescue and Insolvency, Vol. 1, 4: 109-111. Varma, J.R. (2009) ‘Risk Management Lessons from the Global Financial Crisis for Derivative Changes, Indian Institute of Management working paper, February, pp. 2-26. Webster, P. (2008) ‘Royal Bank of Scotland under State Control, The Times, October, 13, [Online]. Available at http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4932250.ece [Accessed 29 October 2009]. Werdigier, J.(2009) ‘Record Loss at Royal Bank of Scotland, The New York Times, February 26, [Online]. Available at http://www.nytimes.com/2009/02/27/business/worldbusiness/27rbos.html?_r=1 [Accessed 27 October 2009]. Woods, M., Humphrey, C., Dowd, K., Liu, Y. (2009) ‘Crunch Time For Bank Audits? Questions of Practice and the Scope for Dialogue, Managerial Auditing Journal, Vol. 24, 2: 114-134.

Examine The Export Led Growth Strategy Economics Essay

Examine The Export Led Growth Strategy Economics Essay Introduction This paper is focused to examine the export-led growth strategy. This is always believed that the developing countries can enhance their economy growth through the export promotion strategies. The economists such as Giles and Williams (1999) mentioned about export led growth which strategy have positive relationship between export and economy growth. There are number of factors are highlighted in literature review which are responsible most in the export led growth model. All factors are mentioned in this paper in detail. This strategy has been adopted by many developing countries and emerging countries to become out from recession. Some countries are successful to achieve their development goals but some are not. This paper research is based on secondary data research. The secondary data research provides wide range of data to analysis. For example Foreign Direct Investment (FDI) report says that the analysis is based on primary as well as secondary data, while the primary survey pr ovides limited information for the requisite analysis, the secondary database has been a major source of detailed firm- and plant-level analysis. The secondary database provided a rich source of plant-level data which has been used extensively in the analysis. The capitaline database provides data on more than 14,000 Indian listed and unlisted companies classified under more than 300 industries. The information used is based on FDI actually received (SEBASTIAN, N.J, 2010). In this report books, articles and journals used to examine the export-led growth and development policies of countries. The statics and data have collected from World Bank, Asian development bank and International Monetary Fund (IMF) reports. The debate is not new, in past two decades number of studies analysed on exports and economy development. Past studies such as (Krueger, 1978; Chenery, 1979; Tyler, 1981; Kavoussi, 1984; Balassa, 1985; Ram, 1985, 1987; Chow, 1987; Fosu, 1990; and Salvatore and Hatcher, 1991) in the favour of export led growth and economy development, but other studies such as ( Jung and Marshal, hereafter referred as JM,1985; Kwan and Cotsomitis, 1990; Ahmad and Kwan, 1991; Dodaro, 1993; Oxley, 1993; Yaghmaian, 1994; and Ahmad and Harnhirum, hereafter referred as AH, 1995) argue against the economy development. While we are examining the export led growth model in the point of view economy growth, then we also need to focus on globalisation as well. There are many types of globalisation for example globalisation of culture, globalisation of economy and globalisation of society. According to the Walker en Fox (1992) (MOSTERT, J, 2003) the global integration of the financial markets can be seen as an example globalisation. Walker en Fox argues than the process of financial globalisation is the most important part of the process of globalisation. Globalisation is the most important part of economy, Brittan (1998:2) states that as a whirlwind of relentless and disruptive c hange which leaves governments helpless and leaves a trail of economic, social cultural and environmental problems in its wake (MOSTERT, J, 2003). The world is connecting to each other via new technology, via phones, via satellite etc. But before 50 years ago it was not much easier then today. For example today Asian countries got number of mobile users. The big telecom companies of UK such as Vodafone and O2 are already invested in India (south Asia). Baldwin and Martin (1999) mentioned that the innovations and advances in transportation, information and communications technologies (RAJAN, Graham Bird and Ramkishen S., 2001). This report is mainly examining the export led growth model in developing countries. This paper examines the south Asia part of world and chosen country is India. This report is structured as section 2 brings overview of globalisation and literature review of globalisation, section 3 highlighted the economic globalisation and in section 4 impact of globalisati on, in further section 5 is about the overview of developing economies, section 6 spells out export led growth model and literature review of export led growth model, section 7 presents the some recommendations on the basis empirical studies result, the section 8 will discussed about the export promotion strategies which are adopted by India and critical examine the strengths and weakness of these promotion strategies, in the final part of this report is section 9 summarizes the discussion and conclusion. Overview of Globalisation Globalisation is the modern way which is changing the world trade system and world politics. The globalisation is the way to reduces the barriers between two countries and interchange the goods, services, labour and capital. Globalisation is popular and cheapest way to reduce the transportation cost, communication cost. It is the faster way to communicate, lower trade barriers and to raise the capital flows. In the result of globalisation the developing economies becoming more close with the world. As per United Nations University, In the new era of growing integration of economies and societies, individuals and corporations reach around the world further, faster, and more economically than before (HESHMATI, Almas, 2005). Literature review of Globalisation Globalization has its roots in the second-half of the eighteenth century. The period 1870-2000 is classified into (i) the first wave of globalization 1870-1913, (ii) the de-globalization period of 1913-50, (iii) the golden age of 1950-73, and (iv) the second wave of globalization from 1973 onwards (see ORourke and Williamson 2000; ORourke 2001; Maddison 2001; Williamson 2002; and World Bank 2002) (HESHMATI, Almas, 2005). Globalisation is a term that has become very popular and used in many different contexts in the literature. Before the impact of globalisation on Africa can be evaluated it is crucial that the meaning of globalisation should be clarified. The definition of globalisation should also be distinguished from terms like internationalization, regionalization and liberalization (MOSTERT, J, 2003). Some claims that globalisation is the breakdown between countries border, economy and communities. Giddens (1999) has characterized as a runway world. For better or worse, he says, We are being propelled into a global order that no one fully understands, but which is making its effects felt upon all of us (HELD, David, 2000). But we look other definition of globalisation given by Guy Brainbant, he says the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNCs, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution (GOYAL, Krishn A, 2006). He also pointed out the negative aspects of globalisation as well. O Brien (1992:5) also links the definition of globalisation to geographical borders. OBrien distinguishes between national, international, offshore and global. National transactions take place between businesses in the same country (MOSTERT, J, 2003). In the end globalisation is related with exchange of service, goods or capital between countries. As Redding (1999:19) defines globalisation the increasing integration between the markets for goods, services and capital, Reddings definition also links globalisation to the breakdown of borders (MOSTERT, J, 2003). The Globalisation is transforming trade, finance, employment, migration, technology, communications, the environment, social systems, and ways of living, cultures and patterns of governance (STREETEN, Paul, 1998). Economic globalisation The concept of globalisation is very broad. The different people have different views and definitions about globalisation. Some economists view globalisation as positive effects on the world economy and world trade but some says globalisation has negative effects as well (see Bhagwati, 2002) (BHAGWATI, J, 2002). Today as we see the cultural, political and technological globalisation is important but we cant ignore economic globalisation as well. Robinson (2001) mentioned that the fulcrum of the various definitions of globalization seems to be wealth or economic development, the parameters within which many schools of thought view globalization is usually based on trade or economic activity (OBADAN, Mike I., 2008). The debate about globalisation is the lack of a clearly agreed definition of the concept- the word globalisation exists with many interpretations- but a clear concept is often missing (HELD, David, 2000). But if we see in general definition of globalisation is that it is fr ee movement of goods, service, labour and capital across borders (HESHMATI, Almas, 2005). As this concept is not new debate globalisation was started from 18th century and now it is in second phase. Whenever the economic crisis came in world for example after World War II or 1991 the countries started international trade. The motive behind this only is economic growth. In today competitive world every country wants to compete other and want to become a rich and powerful country of the world. For example China and India they opened their gate for trade with world and they are on the top in economy growth. However globalisation is not only economic globalisation or not only social or political or cultural globalisation, in other words globalisation is a multifaceted (Daouas, 2001; Obadan, 2001b and 2002b; IMF Staff, 2002; UNDP (Nigeria), 2001, etc) (OBADAN, Mike I., 2008). The economic globalisation is the central term concept of globalisation. International trade is participating in shrink the world. For example in UK or USA you can get easily Asian food or goods, the main exports are India and Pakistan. Brazil is the worlds no.1 coffee exports and Malaysia is the worlds no.1 AC (Air Conditioner) supplier. Another example is Multinational Companies become the main careers of the economic globalisation like McDonalds, KFC and some examples of merger of MNC such as Tata Motors (India) merger with Jaguar (UK) and Tata India merger with Bangladeshi company to make bicycle for exports to USA. In 1996, there were altogether only more than 44,000 MNCs in the whole world, which had 280,000 overseas subsidiaries and branch offices. In 1997, the volume of the trade of only the top 100 MNCs already came up to 1/3 of the worlds total and that between their parent companies and their subsidiaries took up another 1/3. In the US$ 3,000 billion balance of foreign direct investment at the end of 1996, MNCs owned over 80%. Furthermore, about 70% of international technological tr ansfers were conducted among MNCs (SHANGQUAN, GAO, 2000). The globalisation mostly viewed as context of economics but it include human rights and reduce the cost of transport, labour cost, communication cost. The main influence of globalisation on the world is to reduce the poverty. For example 30 years ago countries like India and China were very poor, but today these two countries have high purchasing power more than USA or any other developed country. Impact of Globalisation Globalization has accelerated growth in the region and contributed to poverty reduction (GHANI, Ejaz and Anand, Rahul, 2009). The impact of globalisation is different on developing and different on developed countries. Brittan (1998:8) indicated that globalisation led to an increase in the wealth of developed countries and also not to bigger poverty in the developing countries. As an example of the improvement in the developing countries Brittan referred to the improvement in the economic situation in the Asian countries (MOSTERT, J, 2003). But Hak-Min (1992:2) argued against the Brittan, he mentioned that the distribution of income between developed and developing countries has become less skewed by indicating that globalisation in the integrated world economy has lead to industrial growth in a limited number of developed countries. There are number of definitions of globalisation and thousands of critics as well in this world. In June 1996 at Communiquà © of the Lyon Summit of G7 the given the statement on the impact of globalisation, In an increasingly interdependent world, we must all recognize that we have an interest in spreading the benefits of economic growth as widely as possible and in diminishing the risk either of excluding individuals or groups in our own economies or excluding countries or regions from the benefits of globalisation (MUBIRU, Edward, 2003). According to Killick (2000) a significant part of the world and a large numbers of countries are now effectively participating in the processes of integration and globalisation. In this regard globalisation may be thought of as the integration of economies through trade, capital flows and information technology (MUBIRU, Edward, 2003). Frankel (2000:2) view globalisation as being one of the most powerful forces to have shaped the world economy during the past 50 years (LOOTS, ELSABE, 2001). In past two decades world economy is rapidly growing up. The world economy growth in 2010 is rose up as com pare to 2008-2009. According to CIA since 1946 economic crisis the gross world product grew by 4.6% on the bounced of exports (CIA, 2011). It will be continuing in 2011 and 2012 as well. According to IMF report expected economic growth at about 41/2 percent in both year (IMF, 2011). Amazingly the exports boost by 20% in 2010 from 2009. The above table shows about the largest economies of the world which GDP growth rate is very high and rapidly increasing. These five countries are world main exports, for example China in manufacturing, India for service and manpower, Taiwan in electronics, Brazil for coffee and transport equipment and South Korea is for semiconductors and wireless communication. (CIA, 2011) Largest Economies GDP (%) China +10.1 India +8.3 Taiwan +8.3 Brazil +7.5 South Korea +6.1 Table : Largest Economies GDP Among large economies, China (+10.1%), Taiwan (+8.3%), India (+8.3%), Brazil (+7.5%), and South Korea (+6.1%) recorded the biggest GDP gains-China also became the worlds largest exporter. Continuing uncertainties in mortgage and financial markets resulted in slower growth in Japan (+3.0%), the US (+2.8%), and the European Union (+1.7%), (CIA, 2011). The China and India has surprised the world by their economic growth. The China has gain economy by exports of manufacturing products. For example, Australia and China free trade agreement in 2002 (MAI, Dr Yinhua et al., 2005). Country like India is main manpower and service supplier for USA. India opened the trade gate after 1991 crisis. As per previous studies of impact of globalisation is the key event in world economy. According to Akin and Kose, during this gradual process, several emerging countries have gained in economic importance and have begun to influence economic developments in other countries (FIDRMUC, JARKO and KORHONEN, I IKKA, 2009). China is one of the most important exporting and importing nations worldwide. India seems to be following the development path of China more recently (see winter and Yusuf, 2007, and Yusuf et al., 2007), although India concentrates more on services than does manufacturing-oriented China (FIDRMUC, JARKO and KORHONEN, IIKKA, 2009). From last empirical studies and data statics we got the result that globalisation has participated a lot to boost up international trade. The international trade is the fast way to boost up economy and cash flows. The countries always implement new policies and international trade policies such as free trade and export led growth. Developing countries main focus is export led growth. The researchers mentioned that export led growth as hypothesis which gives country to achieve their development goals. Before we go further first need to know what is export led growth model. After that this report will focus on a one of developing country which is already focusing on this model and gained their economy up. The chosen country is India and India is developing country and situated in south Asia. The crisis came in 1991 India was affected most in the world. After the crisis India opened their trade gates and implements some new export promotion programmes. From the time period till now India is almost successful to achieve their goals. To get better understanding on India and these export promotions discussed later in this paper. This report will also examine the strengths and weakness of programmes which India set to achieve their development goals. On the basis of past empirical studies and research this paper will suggest some possible recommendations. Further start with export led growth, on the basis of past empirical studies we will try to find the definition of this model and also will focus on to find the relationship of export led growth and international trade. Overview of Developing Economies The World Bank has divided the world economies in three parts. First is developed economies means which countrys economy is high , second is developing countries which countrys economies is growing up and last one is least developed country which means poor countries. The developing world described as Africa, Asia and Latin America as compared to industrialized world such as Western Europe, Eastern Europe, North America and Japan (NAYYAR, Deepak, 2009). The division of world economies concept came in 19th century. While the world economy was increasing up in 19th century then the second phase of globalisation was started. We already discussed above about the globalisation and impact of globalisation on world economy. The developing country such as China is the important source for the world economy. China is following by India and there are more country will be in count in further time. China and India average growth rate surprised world economy. Today almost big countries are tradin g with china. China main export is manufacturing products and India is service. Why Country Do Export In general way export is the growth engine. There are lot of benefits are involved with international trade. The main reason for trade is comparative advantage. According to Feder (1982) exports helps economy in many ways such as greater capacity utilization, economies of scale, incentives for technological improvement and pressure of foreign competition, leading to more efficient management (IBRAHIM, Izani, 2002). Due to globalisation every country wants to become on peak. For example Brazil produces coffee most in the world and India is best in natural resources and tea. Iran and Iraq has lot oil to export to world. These country exports their products on high price unless they sell their product on domestic demand. According to Monir Tayeb (2000) countries do export because they presumed to supply foreign markets because it is profitable for them to do so (TAYEB, Monir H., 2000). He also mentioned that countries also interested to do Inter-industry trade (IIT); this is one type of international trade which is mentioned by Monir Tayeb (2000). The definition of IIT is that when a country tends to export one good and import a wholly different type of good. For example UK exports whiskey and imports the Brandy. Italy exports the wine to Germany and at the same time that it also imports German wines. In other way Inter-Industry trade occurs when two countries exchange different varieties of essentially the same type of good (TAYEB, Monir H., 2000). The question is what another benefits are involve with export? The different countries have different requirements for example in poor countries they export for economic growth and developing countries interested to do with both benefits development of their countries and comparative advantage. The developed country like USA has massive production of goods and electronic products so they do export to become more beneficial. But the most important is involved with export is government policies. How country export and wh at is the barriers for trade this is always decided by their governments. As per theoretical studies we will talk about the possible benefits which are involved with exports. So first is the comparative advantage second is economic growth and third is the development of country. First start with comparative advantage: Comparative Advantage: The British economist David Ricardo (1817) invented the theory of comparative advantage. The basic concept of advantage theory was written by Adam Smith in 1766 he set brought the theory of absolute advantage. He argued that countries would tend to specialise in international trade and in particular, that they would export goods they produced more cheaply than their trading partners and import goods they produced more expensively (TAYEB, Monir H., 2000). The above table is giving the simple hypothetical example of absolute advantage. Country Whisky (Cost per unit) Brandy (Cost per unit) United Kingdom  £7.00  £8.50 France  £8.50  £7.00 Source: Monir Tayeb (2000) In the example the UK whiskey is cheaper than France and the France Brandy is more cheaply then UK, because the consumer purchase France brandy from British sources and British consumers also do same they purchase from French suppliers. The key features of international trade are specialisation and exchange. Both countries are specialising in production of goods and they are exchanging their products to get benefit from absolute advantage. This concept simply says that it is good for both nations. This is good for world economy as well. Both countries who has good production of products and they can exchange their product on free trade agreement they will be beneficial both of them because they establishing their international market. This is also good for people because they are getting products on less money. Ricardo theory is based on physical and natural influences over competitiveness, technological and human factors which were given by shortly economists. The most effective mod el of comparative advantage was Heckscher-Ohlin (H-O) theorem. This model originally developed by Heckscher (1919) and Ohlin (1933) and today as Heckscher-Ohlin comparative model. This model assumption is about capital and labour. For example Japan makes the robots to assemble the cars and other motors. The key thing is the labour is costly than compared to Japan. For example India total export in 2010 was $201 billion and total import was $327 billion in the world it shows India import goods more than export. This country is exchanging their products such as petroleum products, precious stones, machinery, iron and steel, chemicals, vehicles, apparel. The main exports partners are UAE 12.87%, US 12.59%, China 5.59%. The other thing is very important to notice is the role of government policies and financial institutions to get better advantage of comparative advantage. The studies for example Memedovic (1994) included the type of state (class base, administrative capacity and mode o f intervention) and argued that the help of the government can bring about changes in comparative advantage (SIEGFRIED BENDER, Kui-Wai Li, 2002). This is true the country do export because they have advantage of cheap labour. For example USA multinational companies have number of call centres in India. The USA average employee wages per hour is $18.00 to $22.00 per hour. But in India they are getting employee on $111 per month. India is the number one service exporter for USA. The below example is also of comparative advantage. Example: Comparative Advantage Lets quantify comparative advantage with an imaginary example. Suppose an acre of land in Canada can produce either 1 unit of wheat or 2 units of corn.3 And suppose an acre in the U.S. can produce either 3 units of wheat or 4 units of corn. The U.S. then has absolute advantage in both wheat (3 units vs. 1) and corn (4 units vs. 2). But we are twice as productive in corn and thrice as productive in wheat, so we have comparative advantage in wheat. Source: (FLETHER, Ian, 2010) The other model of comparative advantage named the specific factors theory is associated with Jones (1971). This model is only based on one factor is labour. But the H-O model considered two factors labour and capital. The below table is example of H-O comparative advantage model: Country Man-Made Fabric actual cost Opportunity Cost Cotton fabric actual cost Opportunity cost UK  £300 0.92  £325 1.08 Turkey 4500 TL 1.06 4250 TL 0.94 Source: Hecksher-Ohlin comparative advantage p.17 (TAYEB, Monir H., 2000) The above example is showing the labour cost difference between UK and Turkey. So this is also comparative advantage for the countries. Porter (1990) mentioned some competitive advantages in his study. The above are the advantages which Porter (1990) mentioned: The availability of skilled labour Locally available technology and know how Access to suppliers of key inputs Market proximity The local cost of inputs Vernons (1966) product life cycle theory is also important in trade. He determined that every product has life cycle, once product has launched it is in introduction stage, once product people used and the product become popular on domestic level. In short time the product start export to world. In the end we can say if country is interested to do export because of comparative advantage and economy growth as well. Export Led Growth In past decades there are many empirical studies has been analysed on export-led growth and world economy. The main topic for these studies was to examine the relation between exports and economic growth for example Giles and Williams (2000). Most of studies were focus on exports and GDP, but some other studies such as Hatemi-J and Irandoust (2001), Hacker and Hatemi-J (2003) and Bernard and Jensen (2004) focused on the exports and total factor productivity (TFP) growth. While these studies were focusing on Exports and GDP or TFT but studies such as Murphy, Shleifer, and Vishny (1989) were purposed the theory of Big Push industrialization1. Murphy, Shleifer and Vishny (1989) said that simultaneous industrialization of many sectors can be self-sustaining and profitable even if no sector can break even when investing alone.2 After the crisis of 1991 many Asian countries were under the recession time but countries like Thailand, Malaysia found the external way to overcome recession time . According to Felipe (2003) Since the East Asian financial crisis erupted in 1997, countries in the Asian and Pacific region have been immersed in a search exercise to identify what policies led to the crisis and recession, and what alternative set of policies would lead them back to a path of sustained and higher growth rates. The Asian countries were trying to rebalance their economy and GDP, for example Jomo (1998), Seguina (2000), Lim (2004) said that The majority view has been that the crisis was the consequence of a fundamental flaw in precrisis financial policies, which led to currency overvaluation, over borrowing, and over lending for the domestic economy; and speculative bubbles that eventually burst. The Thai government development policy was based on dual track strategy (Lian 2004). Relationships between Export and Economic Growth (Literature Review) This debate is controversy and number of empirical studies done already. Some authors suggested that open economy has positive effects on growth more than close economies (Sachs and Warner, 1995; Edwards, 1992, 1993, 1998; Srinivasan and Bhagwati, 1999; Krueger, 1997; Ben-David and Kimhi, 2000) (FREDERICO G. JAYME, Jr, 2001). Empirical evidence from developing countries support studies such as Taylor, 1993; McCombie and Thirlwall, 1999; Blecker, 1999b; Helleiner, 1996; UNCTAD, 1995 (FREDERICO G. JAYME, Jr, 2001). Trade is the key concept for the countries to grow. For example countries like Malaysia, China, India and Brazil they all are got benefits from trade. The countries do export for comparative advantage. For example Brazil is number one coffee production country and world main coffee exporter as well. The trade is the only way to right use of economys resources by imports of goods and service otherwise they have to sell at home with high resources cost. For example Ricardian m odel says that the welfare gains if any country specializes in producing goods in which it has a comparative advantage (FREDERICO G. JAYME, Jr, 2001). The Hecksher-Ohlin-Samuelson (H-O-S) model, on the other hand, shows the welfare gains, In the two-country model that each country specializes based on their factor endowments. The result of these models is that international trade is the way to achieve the international competitiveness and static productivity. International trade enable to countries reduce the transportation cost, production cost and reduce the labour cost in case of developing countries. Beck (2002) mentioned that Financial development and international trade are identified as macroeconomic variables as being highly correlated with economic growth performance across countries in the empirical growth literature (UDDIN, Md. Gazi Salah, 2005). The other example of empirical study of economic growth is Calderon and Liu (2003) says that the relationship between financial development and economic growth has now well recognized in the literature that financial development is crucial for economic growth and Chang (2002) mentioned that it is a necessary condition for achieving a high rate of economic growth (UDDIN, Md. Gazi Salah, 2005). Trade has a strong positive relationship with economic growth (Mazur and Alexander, 2001) (UDDIN, Md. Gazi Salah, 2005). Trade allows countries to set a large market for their domestic products. The two studies Prebisch (1950) and Singer (1950) about the effects of trade on income are based on two grounds First, incessant decrease in the international price of raw materials and primary commodities would lead, without industrialization in developing countries, to more profound differences between developed and developing countries. Second, for their Industrialization, developing economies require short or medium term protection of their infant industries. Furthermore, the structure of trade, under which exports are conc entrated on a few primary products and imports are constituted mostly by manufactured goods, renders developing countries overly dependent and vulnerable (RAZAFIMAHEFA, HAMORI Shigeyuki and Ivohasina F., 2003). The others author such as Levine and Renelt (1992) and Rodriguez and Rodrik (1999) emphasize on trade effects on economic growth. There are most studies done in the favour of trade effects on growth but there are some studies which are contradicted with these studies. For example Rodrik [1995] argues that in most studies of openness and growth, indicators used inappropriately reflect the trade regime (RAZAFIMAHEFA, HAMORI Shigeyuki and Ivohasina F., 2003). Edwards (1997) tests, for a data set of 93 countries, the robustness of the impact of trade on growth by introducing first alternatively and then simultaneously nine measures of openness. He said that each proxy for openness is correlated positively with economic growth and the composite index from those proxies also enters with a positive coefficient in the growth regression. Krueger (1978) study tested two hypotheses which has positive effects of openness on growth, first is more liberalized regimes result in higher rates of growth of exports, and second is a more liberalized trade sector has a positive effect on aggregate growth. Feder (1982) he analysed the set of 31 semi-industrialized count