Environmental Analysis Essay

Introduction This essay will discussed one of the most controversial environmental issue climate change along with some of the facts including how people first discover that climate change does existed; as well as legitimation in climate change globally; public debate; and the way in which government response to this issue. Furthermore this paper will discuss the role of science to identify the existence of climate change. Identification and legitimation of the issue Climate change is one of the biggest environmental challenges that the world encounters. It has obvious impact on our planet causing higher temperature, shifting seasons, sea levels rising. These phenomenon are closely tide up with world’s economic as it affect businesses around the world. The British government report warned if no action is taken to control carbon emissions climate change would cost 5 to 20 percent of the annual global gross domestic product. (Climate change impacts, 2011). The United Nation’s intergovernmental Panel on Climate change published a report in 2007 regarding the discovery of Global Warming since the 20th Century. (IPCC, 2011). The possible reason for this phenomenon may be caused by human activity. The appropriate definition is explained by the IPCC, which states that climate change is â€Å"a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods.† (IPCC, 2012) Many countries have taken the initiative to legislate appropriate regulation regarding climate change. In 2010 a published article noted that â€Å"Qinghai† is one of the first province to establish a regulation that holds local government and state owned enterprises response in coping with climate change (Xinhuanet, 2010). The statistic have shown that â€Å"Qinghai† ‘s temperature in general has been rising by 0.35 centigrade every ten years compare to the world’s average of 0.13 centigrade. (Mu Xuequan, 2010). This regulation will stress the importance and specified the local government’s responsibility on climate change. Public Debate The argument around the topic of climate change is one of the most controversial topic because it involved in whether climate change is man made or its simply nature forces. Some scientist believes that the temperature of earth is actually getting colder not warmer due to the cycle of the sun. This is known as the â€Å"Sunspot cycle†, sun gets a little bit hotter and colder every 11 years and when it gets colder it causes the temperature of earth to get colder too. Other scientist argued that the change of temperature is so small that it can barely be detected. Most scientists agree that an increase in the amount of carbon dioxide in the atmosphere is the main cause of global warming. They argued about the details of the effects of global warming on the earth. However it is generally agreed that it will lead to worldwide changes in weather patterns, gradual melting of the ice caps and rising sea levels. These changes will impact on your lifestyle, agriculture and the survival of other organism. (Haire, M et al, 2000). Energy savings, emissions reductions and water resource conservation and many other works related to climate change need to be considered Government policy response Recent years many countries have impose law relevant to combat climate change. Energy savings, emissions reductions and water resource conservation and marketing â€Å"green† have been the primary goal amongst most organization. Country like Australia is promoting energy efficiency measures through a wide range of programs and rebates. The election of Kevin Rudd in 2007 especially shows a major change of the Australian government policy through Australia’s ratification of the Kyoto Protocol. In terms of some specific initiatives the Australian government also continue the measure of mandatory renewable energy target scheme. And since 2010 the Government also established a climate change committee with the main purpose of investigate â€Å"options for implementing a carbon price and help build consensus on how Australia will tackle climate change† (Parliament of Australia, 2012) Role of science Science has played an important part in proving the existence of climate change by observation and experiment. This graph above depicts the global change in sea level since the end of the last ice age. During this 15,000 year period sea level has increased approximately 125 meters. Conclusion By evaluating the historical development of climate change we can conclude that climate change is the most important and challenging environmental issue. Regardless of the disagreements, climate change has been proven exist by scientific research. It has drawn the public attention and requires international cooperation among different governments. Reference Haire, M et al (2000). Core Science3. Singapore: Kyodo. P110-111. IPCC (2011) Intergovernmental Panel on Climate Change. [online] Available at; http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr_cn.pdf [Accessed: 27 Jul 2012]. Parliament of Australia (2012) Australian government response to climate change. [online] Available at: http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/Browse_by_Topic/ClimateChange/Governance/Domestic/national [Accessed: 27 Jul 2012]. Sunspots and climate (2000) Sunspots and climate. [online] Available at: http://www-das.uwyo.edu/~geerts/cwx/notes/chap02/sunspots.html [Accessed: 27 Jul 2012]. The Nature Conservancy (2012) Climate Change Impacts. [online] Available at;

A Summary Of Three Main Points You Gained

A manager is designated by an employer to make sure things are to run smooth, and are to always the visionaries the company hoped they would be. A leader on the other hand, is a visionary that uses there vision to exceed and bring forth the full potential Of their employees, and company. They are strategic thinkers asking questions of what there strength and weakness. They question on how they can use these strengths to improve weaknesses and if possible build upon what they are already good at.Leaders use strategic thinking to formulate and implement their mission, vision, and goals. They also build Consensus, meaning they â€Å"question the status quo. They challenge their own ND others' assumptions and encourage divergent points of view. (â€Å"Strategic Leadership: The Essential Skills†) Leaders do not rush they take there time to implement their plans at the perfect, precise moment. The ability to execute impeccably helps make there visions successful. Strategic Leadersh ip: The Essential Skills. (2013, January 1).Retrieved January 22, 201 5, from HTTPS:// hub. Org/2013/strategic-leadership-the-essential-skills 2. Your findings and connections that you make (What seems particularly true or sensible to you as you read, and why you think so? Does this article connect in any ways to: course lecture content and other readings in this course, prior knowledge? ) This article makes complete since. Feel that the article can connect to really anything in our lives: work, team sports, volunteering, school, kids, marriage and etc.Being a leader in notes our personal lives but in our careers is what makes us successful. This also helps us with accountability and improves things even when we may think is good enough. This is how we make ourselves and other to become better in life. This is also how I see our Hooch's. Hooch's have a â€Å"array of services effectively designed, aligned, integrated and continuously improved† (page, 71 ) They are a strategic foundation that sets decisions on its mission, vision, and values.This meaning that it has to continuously strategically thinking of ways to make care provided to patients better. Hooch's also have to have a way of consensus; this is how goals are met by everyone to a common ground to be successful. Implantation of plans for Hooch's must also like a leader be executed at the proper times. If plans are not executed at the proper time they can cause a upset or imbalance which could effect the over all goals of the HOC. White, K. , & Griffith, J. (2010). The Well-Managed Healthcare Organization.

Criminal Justice System

The criminal justice system is a complex system with many components all of which operate with a process that allows for equitability for all citizens. It is a system that allows for crime reporting procedures and gives everyone the opportunity to seek justice through a proven, honest system rather than vigilantly justice. It is not a perfect system, but it does work more often than not. It is a system with numerous checks and balances at varying levels of government. It is formulated on the principles and beliefs of the founders of this country and has endured the test of time.To ensure a flexible and fair system that will grow with an ever changing country, the system modifies as needed through constitutional amendments Components of the Criminal Justice System Within our modern and sophisticated government are intricate components of the criminal justice system. Within this system, at every level is a specific and deliberate process governed by law established by our forefathers. There are elements within this system incorporating major crime reporting procedures.There are varying criteria for crime reporting; some are better than others, but all reporting procedures are designed to bring criminals to justice The criminal justice system essentially has three main components consisting of law enforcement, the court system, and the correctional system. Law enforcement consists of police at many varying tiers of a complex system. Some of these police are your local or county police, sheriffs, state and federal law enforcement officers. The court system is a system that supports law enforcement, but it is designed to assist the defendant’s or alleged criminals also.This system has to be impartial in order to maintain its credibility on both sides of the law with prosecutors and defendants both represented equally within the system and its laws. The corrections system is designed to punish criminals and keep dangerous people separate from the rest of socie ty. It is a system with a life cycle which follows a convicted criminal from verdict to release from an institution. The criminal justice process, which takes place within the system, is very methodical and organized.According to Houghton, Mifflin, Harcourt (2013), â€Å"Criminal justice is a process, involving a series of steps beginning with a criminal investigation and ending with the release of a convicted offender from correctional supervision. Rules and decision making are at the center of this process†. Most importantly in this process are the rules and decisions which are governed through documents as old as our county. These documents provide the guidelines which prosecutors and defendants use and governs law enforcement, court system and the penal systems at all levels.

In Praise of Blame by George Sher Essay Example | Topics and Well Written Essays - 1000 words

In Praise of Blame by George Sher - Essay Example He has a few theories about it and sets about to debating over them one of them being blame’s relation to character. Sher starts off arguing against the Humean idea about how blaming someone depends on the person’s character. Someone who has a bad character is the one who can be blamed about things and not otherwise. He has different point of views regarding this and debates over them. The Humean claim is that we can only blame people if their bad side emerges because of the negative qualities – or a particular negative quality - they may have. Basically, if someone is generally a very bad person, he may be mean or selfish or rude, etc. then only he may automatically have terrible qualities and we can judge him depending on those. We may actually end up holding them responsible for whatever issue has taken place. On the other hand, if the person is actually very nice and due to certain circumstances he has not been acting well mannered and has been showing the al most nonexistent bad qualities, then we should not blame them for whatever mistakes they may make. Since they are just that – a mistake – which surely would never be made again. It is, of course, human nature to make blunders. Nobody is perfect though there are some people who are striving to be so even if they are not fully reaching the top line. People are well mannered and have good morals but they cannot always keep up with their expectations of themselves. They will slip up some day or the other. It may be because of some problems they are facing. A person may be very sweet tempered but due to some personal inconveniences he is going through, he may not be acting like his usual self. He may lose his patience quickly and start shouting without much reason. It is a general assumption that the person is nice and should not be blamed about his few mistakes. This may happen quite rarely so it is only fair to forgive these people. After all, no harm was done on purpose and a life time of being a good human being should not be ignored just because of a raised voice or something equally unimportant in the long run. So he should not be blamed to whatever may occur due to an impulsive reaction. Someone who is short tempered or just not well mannered may generally have a whole list of undesirable qualities in him. It is his way of life so one may easily charge him with fault if he - yet again - does something disagreeable. One may blame him easily as he is in the habit of doing such things daily; that one knows is not rare mistake. That he knows what he did is not right and yet he continues to do it, that he does not try to redeem himself. Now this point is understandable, of course, but Sher does not seem to be agreeing with the idea. One may basically understand him to believe that blaming people with generally good characters is okay. Just because they make an error in judgement or something, it does not mean that the problem never arose because of them. It was their fault and they should be blamed for it despite the fact that they do not make a habit of it. It was a mistake, no matter how huge or small, and what is done is done. There are side effects of everything – be it good or bad – so it is only practical that the person be blamed for it. Just because they did not do it purposely or were ignorant to its results does not mean that it was not their fault. Similarly, he also says that just because a person has chock full of negative attributes in him, it does not mean that if he makes a mistake, we should put all the blame on him immediately. He believes that even though the person may have his own set of issues which may lead to him having a

Respiratory Essay Example | Topics and Well Written Essays - 3000 words

Respiratory - Essay Example develop diseases, and others don’t, researchers have particular singled out specific risk factors that increase individual’s vulnerability to developing certain types of diseases or conditions. The effects of cigarette smoking, alcohol abuse and high fat diet on the development of respiratory and cardiovascular diseases are well documented. It is however difficult to disentangle the effects of smoking and alcohol since the two tends to be correlated because many smokers are also heavy alcohol abusers. However, all these factors have serious risks to the normal function of the respiratory and cardiovascular systems. It is therefore important to note that one can reduce their risk of early death by taking a lifestyle change and reducing smoking, alcohol and high fat diet. This study examines a comprehensive review of peer reviewed journals in order to evaluate the risk factors; alcohol abuse, smoking and high fat diet on the respiratory and cardiovascular systems, pathophysiology and also to identify possible emergency medical management. Epidemiologic evidence of lung cancer is very important since it forms the basis for early intervention practices as well as treatment interventions. While evaluation of the risk factors play key role in prevention of respiratory and cardiovascular systems’ disorders, epidemiologic evidence is crucial in assessing the effectiveness of the interventions programs. The use of tobacco and exposure has been linked to various forms of cancer due to its carcinogenic chemicals. According to Hoffmann et al (2013 p.2), tobacco smoke contains50 carcinogenic chemicals out of 400 chemicals. The World health Organization estimates the world population of smokers to be consuming 6 trillion of cigarettes annually. However, this excludes the second hand smokers who are also at high health risk. According to World Health Organization, annual tobacco related deaths are expected to by 10 percent to eight million by 2030 if something is not

Healthcare Systems Around the Globe Research Paper

Healthcare Systems Around the Globe - Research Paper Example The French have were found to have the most efficient healthcare system in a report released by the World Health Organization in the year 2000. The report was notorious within the United States as the country was found to have the highest expenditure, however, was ranked 15th in its overall efficiency (Folland, 2006). This paper will make a comparison between the French and American healthcare systems. Health Statistics and Costs: Comparison between U.S. and France Firstly, the analytical data obtained from the two countries illustrates the difference in their efficiency. According to the report released by WHO in 2011, France has a population of approximately 65 million and a life expectancy of 81,8 years (World Health Organization, par 1). Females in France have a slightly higher life expectancy of 85 years whilst the males have an expectancy of 78,5 years. This places the country 10th in the world. The United States has a slightly lower life expectancy with females at 80,67years a nd males at 74,89 years (World Health Organization, par 1). The United States is ranked number 33 in the world life expectancy rankings. The United States has a mortality rate of 8,25 per 1000 population whilst France has a rate of 4,10 (World Health Organization, par 1).The leading causes of death in France include lung cancer, coronary heart disease, breast cancer, stroke and Alzheimer’s. ... Health Care Financing: Comparison between U.S. and France Healthcare in the United States is financed through both private and public sectors, whilst the funding in the French healthcare system is largely controlled by the government (Shi and Douglas, 2009). The French government funds approximately 70% of an individual’s healthcare costs and in cases of long term care all the patient’s costs are covered. Citizens may also obtain supplemental coverage from private insurers who are frequently nonprofit organizations. The French government spends approximately 11,2% of the country’s GDP on healthcare. The United States spends 15% of its GDP on healthcare and when considering cost per capita, this equates to almost double the amount spent by France (Shi and Douglas, 2009). In addition, citizens in the United States spend more money on pharmaceuticals and hospital care than the French. Healthcare Administration: Comparison between U.S. and France Healthcare in Americ a is overseen by the United States Department of Health and Human Services. The provision of health insurance by the American government is carried out through Medicaid and Medicare which were established in 1966. As mentioned above, the French healthcare system is largely controlled by the government through the French National Health Service. This service refunds patients their healthcare costs and the citizens are expected to contribute depending on their income. Health Care Personnel and Facilities: Comparison between U.S. and France The United States has one of the lowest physician per capita ratio with approximately 731Â  000 physicians, equating to approximately 2,5 physicians per 1000. There are approximately 26,669,603 nurses which equates to

Business entity paper Essay Example | Topics and Well Written Essays - 1000 words

Business entity paper - Essay Example In addition, it is pointed out that America is an emerging market for high-end watches, especially the complicated and fashionable ones. In addition, despite the recession, there is a report by Johnson in the National Jeweler dated 1 April 2005 that the sale of fine watch grew by 6 %, and as per the reports, the sale of high – end watches rose in double digits. In addition, there is report that the watch market has a 9.3% increase in 2005, a figure that attracts all businessmen considering the impact of recession. However, the rise is visible in high-end products, not in low-end products. From the above analysis, I found it safe and profitable to have my business in watch and timepiece retail, especially focusing on the elite class of the society. By starting my showroom in strategic location like the city of Los Angels, a decent business is assured. As per the reports, there is a sharp increase in the sales of watches ranging above $ 10,000. In addition, there is a considerab le rise in the sales of ‘steel and diamond watches’. Moreover, as per reports, the total US consumer spending on watches and other jewelry rose by 1.2 percent, as compared to 2009 (Jewelry & Watch Retail). Furthermore, according to the DJ US Consumer Goods Index, ‘consumer goods’ come fourth in the list of ‘best performing industries. Thus, it becomes evident that there is a possibility of this industry performing better than all other industries. Moreover, as per reports, the sales of Swiss watches in Chile increased by 30% in 2007 and are expected to rise more (Economic Integration). In addition, there is the logic that there will not be any fall in the sales of watches as they are all time requirement for people. So, even if there is no sharp growth in demand, there will not be any considerable fall in the sales. The only issue will be the competition from other retailers in the market. Thus, it becomes evident that retail of watches is one of the best business opportunities in the present business climate in the US. In addition, as per predictions, there is no possibility of a sharp downturn or fluctuation in the sales of watches in America. I would like to mention here the fact that American economy is on its recovery path from the recession, and hence there are new business opportunities as people are regaining their lost financial safety. As people are regaining their financial strength, it is highly likely that they will again start purchasing apparels and cosmetics, as they are an essential part of life. As compared to other such things, watches are a necessity for all people. So, taking into consideration the influence of recession, and the still weak economy, it is wise to select the retail of watches. In fact, I have selected Los Angels as the location of my showroom. There are various reasons for this selection. The first consideration is the huge population of Los Angels. It is the most populous city of California. As per reports, the population of the city is around 4.1 million (Beacon Economics, 2010) In addition, the location is the focal point of the Los Angels- Long Beach Riverside, with a total population of over 18 million. Yet another point of consideration is the higher income of people in Los Angels city. As per reports, the per capita income of people in the Los Angels city is an average of $ 55,000 (Beacon

Examine the distinguishing features of HRM in Europe Essay - 1

Examine the distinguishing features of HRM in Europe - Essay Example Human Resource Management is an important part of this global trend. Not too many years ago, M.B.A. graduates were simply required to have a basic level of understanding of a single HRM system located within their own country. Today, business leaders must deal with a complex international HRM environment where a company’s personnel practices are often shaped by the culture of the country, the corporate expectations of its citizens and the role that a country’s public sector agencies play in determining private sector outcomes (Briscoe &Schuler, 2008). Much of the literature on HRM in European firms attempts to determine if HRM policies and practices across Western Europe are converging or diverging. Those who support the convergent approach argue that HRM systems in European democratic polities share much in common and that a European model of HRM has emerged particularly since the advent of the European Union. Proponents of the divergent approach contend that Europe is comprised of many different cultures, social and political institutions, languages and economic systems andd that a unitary model of HRM is impossible to achieve even within the context of the EU (Brewster, 2007). This convergent-divergent dichotomy serves as a useful theoretical framework for this paper. Through the examination of the recent literature on international HRM in European businesses, the paper argues that existing HRM practices in Europe tend to be more representative of the divergent end of the HRM policy continuum. It concludes with a discussion of some of the ramifications that a divergent HRM policy environment has for the future of economic prosperity in the European Union. In a 2009 comprehensive analysis of human resource practices in Europe, Mayrhoefer and Brewster developed an empirical model that allows for comparisons of HRM systems and practices within European countries.

How Does the Low Cost Carrier Flydubai Manage to Increase It's Market Research Paper

How Does the Low Cost Carrier Flydubai Manage to Increase It's Market Share in the Aviation Industry in the Middle East Region - Research Paper Example The paper tells that the Dubai based Flydubai Airline is one of the LCCs that has succeeded in carving a considerable market niche for itself. The airline launched its operations in 2009 and has since spread its services to different parts of Asia, Europe, and Africa. One aspect that has made the airline successful is innovation on unique strengths and not in competing with larger airlines for above customer segments. The principle behind LCC is to offer services to routes that are considered less lucrative for larger airlines to operate. In order to understand the operations of Flydubai, it is necessary to investigate how the company operates and how it has spread its routes in determining its strategies and its competitive advantage. In addition, the report will investigate the strategies that the airline has put in place since its launch, and how these have contributed to the growth and expansion of the airline. This will indicate how the airline stands in comparison with other la rge airlines such as Emirates and regional LCCs in the Middle East. The report will show that strategic management and innovations are the most important factors that explain the rapid growth of Flydubai in the short time since its launch. Flydubai is a low-cost airline with its operations based at Dubai International Airport. The company was founded on 19 March 2008 but did not commence its operations until 1st June 2009. The airline offers its services in various destinations within the Middle East region, Europe, Africa and other Asian countries. The company has a good fleet of Boeing 737NGs, at its disposal, which is part of the latest lines of airplanes that have facilitated the company to compete effectively in the market. Flydubai was founded by Ahmed bin Saeed, the then Emirates chairman as a special brand of Emirates to offer the low-cost option to tourists and business operators within the region. Though the airline operates as an independent airline and even competes with Emirates, they offer some services in cooperation with Emirates, which include facilitating passenger connectivity in relation to dual boarding in the issuance of passes and baggage on the specific destination. Immediately after its launch, Flydubai remained in the black for about two years without reporting any figures. However, in February 2013, the company surprised many by reporting they had made a net profit of $ 41 million in 2012, with $756 million dollars in revenue. The rapid growth over its two years of operations opened another chapter in Dubai that proved the need to have more LCC in the rapidly expanding Dubai market.

Ethical theories Essay Example for Free

Ethical theories Essay There are five types of ethical theories: 1. Teleological theory of ethics 2. Deontological theory 3. Virtue ethics 4. Justice as fairness 5. Feminism The teleological theory examines the consequences in terms of pleasure and pain, which is termed as â€Å"Utilitarianism†. According to this theory, our obligation in any situation is to perform that action which will produce the greatest amount of good over evil. Under this theory, the ethical virtues such as being honest or not lying are not obligatory. Utilitarian morality compels you to do only those particular acts which bring out good results only. For instance, consider a situation where telling the truth can break someone’s heart or hurt his/her feelings then in the light of this theory, lying is better than honesty. One of the fundamental characteristics of utilitarianism is universalism which talks about the pleasure of everyone, rather than benefitting your own self only. The two versions of utilitarianism have evolved from these conditions, act-utilitarianism and rule-utilitarianism. The two great philosophers, Jeremy Bentham and Stuart Mill presented their views in the light of this theory. Bentham proposed the act-utilitarianism theory and said: â€Å"An action is right if it produces greatest amount of pleasure over pain for everyone† However, this statement was greatly opposed by many critics since they termed it as a â€Å"pig philosophy†. Critics complained that pleasure alone can not constitute the good for human beings because even pigs are capable of attaining pleasure from their own bodies so it would be better to live the life of a satisfied pig rather than being a dissatisfied human being such as Socrates. Seeing these objections, Stuart Mill supported the utilitarianism gave the idea of act-utilitarianism by giving his view that an action is right if it produces greatest amount of pleasure over pain by following certain moral rules. Mill said that a person should go for qualitative pleasure rather than quantitative pleasure. Mill also defended the accusation of pig philosophy on Bentham by giving his views that human beings are able to enjoy the higher levels of pleasure than swine. Human beings can pursuit pleasure in the form of intellectual arts and other such activities. Hence, Mill categorized pleasure in higher and lower forms of pleasure. Rule-utilitarianism emphasized tremendously on morality and social obligations, which in fact, are the problems of all teleological theories. Concluding the discussion now, the best theory is the rule-utilitarianism as compared to act-utilitarianism theory because one does not need to calculate the amount of pleasure and pain before performing any deed. Instead, it provides the basic grounds of morality and goodness for doing any action.

The Types Of Conflicts

The Types Of Conflicts Conflict and negotiation have been a serious matter for organization. As individuals have different thinking or way of doing things different from others, conflict may occur among them. So we will identify those types of conflict happening between individuals in the workplace. Then we will explain the different variety of organization conflict levels. After that we will explain Thomas-Kilmann Model used for conflict issues based on assertiveness and cooperativeness and then discuss the negotiation approaches used when parties are negotiating in something. Another part of the work will be taking about culture and then explain Scheins iceberg model of culture and Handy four dimensions of organizational culture. The last episode will explain about Kurt Lewins three steps of change theory. Introduction Conflict is a normal and natural part of our workplaces and lives. As people with diverse background come together in a working environment, differences in opinion, attitudes and beliefs. However conflict does not submit itself to a single and widely accepted definition, different peoples have given different definitions. Dougherty and Pfaltzgraff( 1971:139) defined the concept as: A Condition in which one identifiable group of human beings is engaged in conscious opposition to one or more other identifiable human groups because the groups are pursing what are or appear to be incompatible goals (Dougherty, 1971). Dougherty and Pfaltzgraffs definition clearly points to the fact that conflict arises out of interaction between and among people. Mc Shane and Olekalns also defined conflict as a process in which one party perceives that its interests are being opposed or negatively affected by another party (Mc Shane Tony, 2010). Types of conflicts: Since all individual have different mindset, it is quite possible that there may be arguments or differences of opinion according certain issues. This take place most often in workplaces. Generally there are many types of conflict but the majority of them are found in places of work because most of our time is spend there. In our situation we will focus on just three types of conflict which is task conflict, relationship conflict and process conflict. Task conflict- task conflict are conflict that happen within a group or team, this type of conflict is focused around the task at hand. It arises when the group members have different viewpoints, opinions and ideas. Example: in a workplace, differences of opinion between the members of a project team on how to market a new product. Relationship conflict- Relationship conflict concerns interpersonal animosities and tensions among individuals themselves rather than the task, it occur because of the presence of strong negative emotions, poor communication or miscommunication. This type of conflict happens every day in our life it is difficult to avoid it. Example: Process conflict: Levels of Conflict: As we have seen, organization conflict can take place at a variety of levels. By far, conflict occurs at various social levels and may include intrapersonal, interpersonal, intergroup and interorganizational level of conflict. Intrapersonal Conflict occurs between the individual and may involve some form of goal, cognitive or affective conflict. Intrapersonal conflict is unique among the types of conflict, it is the sort of conflict that happens whenever an individual behave. This type of conflict is also known as psychic conflict. It occurs when an organizational is required to perform certain task and role that do not match his or her expertise, interests, goals and values. An example of interpersonal conflict is when an individual is attracted to two desirable goals but cannot pursue both. Interpersonal Conflict involves two or more individuals who believe that their attitudes, behavior or preferred goals are in opposition. This type of conflict between individ uals is a concern for managers because it happens all the time between individuals in the same or different department or even different organizations. An example is conflict that occurs between two different hierarchical levels or units members in the same organization such as superiors and subordinators. Intergroup Conflict refers conflict between groups of individual such as members of different teams, department or groups. The group may be very large such as notions or much smaller social group such engineers or the production managers in a manufactory facility. Interorganizational conflict involve disputes between two or more organizations as a result of interdependence on membership and divisional or system wide success. An example is the competition against two different businesses to one another. Conflict Mode: Thomas-Killmann Model. Conflict arise when people have different views on a subject, the Thomas-Killmann Model can be useful because it focuses on the individual style used most often in conflict issues, this conflict model is based on an access of assertiveness and cooperativeness. The elements of this model are followed: Avoiding, Accommodating, Competing, Compromising and Collaborating. Lets start by the first one Avoiding people using this type think that they evade the conflict entirely, this style is typified by delegating controversial decisions, accepting wrong decisions, and not wanting to hurt anyones feelings. However in many situations this is a weak and ineffective approach to take. The next one is Accommodating, this style indicates a willingness to meet the needs of others at the expense of the persons own needs. The person using this style often knows when to give in to others, but can be persuaded to surrender a position even when it is not warranted. This person is not assertive but is highly cooperative. Accommodation is appropriate when the issues matter more to the other party, when peace is more valuable than winning. After accommodating we tend to Competing, strongly assertive and not inclined to cooperation. This is a power oriented approach, competing is appropriate when quick decisive actions is needed or when an unpopular but necessary course must be followed. This style can be useful when there is an emergency and a decision needs to be make fast. Another style is Compromising, this an intermediate style in both assertiveness and cooperativeness, individuals who prefer a compromising style try to find solution of the problems that will at least partially satisfy everyone. Each person is expected to give up something and the compromiser also expects to abandon something. This approach lead leads to expedient and acceptable outcomes that fall short of ideal but which both parties are willing to accept. The last one is Co llaborating, this is where people try to work together like as they say two heads are better than one. Assertive and cooperative, this involves working with the other party to find a mutual agreeable solution. A collaborator will not be shy to express his or her views. This style is useful when you need to bring together a variety of viewpoints to get the best solution when the situation is too important for a simple trade-off. Below is how the diagram of Thomas-Kilmann model is presented based on assertiveness and cooperativeness. Negotiation Approaches: one distinctive type of conflict management is negotiation, where people engage in give and take discussions and consider various alternatives to reach a joint decision that is acceptable to both parties. Some conflicts require confrontation and negotiation between the parties. The strategy to negotiate requires skill on the part of the negotiator and careful planning before proceeding in negotiation. This process of negotiating involves an open discussion of problem solution. There are two (2) major negotiation approaches which are distributive and integrative. Distributive negotiation is considered the traditional model for handling negotiation. It is an approach in which the goals of one party are in direct conflict with the goals of the other party. In distributive negotiation each party attempts to get as much as they can. One side wants to win which means the other side must lose. With this win-lose approach, distributive negotiation is competitive and a dversarial rather than collaborative and does not lead to positive long term relationship. An example, when negotiating for a used car, if the buyer feels that he got a good deal for the car, he won. But if he walks away feeling that he paid too much for it, he lost. On the other hand, Integrative negotiation is based on a win-win theory, in that all parties want to come up with a creative solution that can benefit both sides. With integrative negotiation, conflicts are managed through cooperation and compromise, which leads trust and positive long term relationship between the parties. Ideally, no one should loose in an integrative negotiation because the parties will sit together to analyze the solution of the problem so that each party will benefit from it and build a strong relationship. Example a trade union negotiating with the employers asking an increase in 2.5% of wages every year with bonus on every Christmas or they would go for strike. The employers suggested 1.5% increa se in wages for every two years and 2 hours of work per day bonus will be given. Therefore, the suggestion is advantageous by both parties. Workers benefit good wages and bonus by only giving an extra two hours. The companys work process will be increased that can tend to an increase in sales and profit. So, with integrative negotiation, both parties won. Organizational Culture: According to Ross, culture is a Particular practices and values common to a population living in a given setting. Schein states that the manifestation of organizational culture occurs at three levels: Artifacts, Beliefs or Values and Attitudes and Basic Assumptions. This model provides a useful approach to analyze the cultural construct based on the degree to which the cultural phenomenon is visible to the observer. Artifacts are the most visible aspects of culture, including language, clothing, manners, food, etc. they represent the physical construct of the organization and its social environment. Organizational artifacts include visible phenomena such as: technology and products, language, rites and rituals, uniforms, myths, organizational stories, symbols and ceremonies. Artifacts are easily visible. The second level of Scheins Iceberg Model of culture Beliefs, Values and Attitudes are those values of cultural group which are not visible, but conscious to the members of the group. Schein argues that the artifacts that we can observe are manifestations of the values that constitute part of the organizational culture. The third is Basic Assumptions; these are invisible and unconscious beliefs, perceptions, thoughts and feelings shared by members of a common culture. These basic assumptions grow from the continuous use of a problem solution that has frequently been successful in the past. This is also a challenge for managers because it is quite a challenge to change something that you cannot see, but what is certain is that basic assumptions profoundly influence a persons actions. Below shows Scheins Iceberg Model of Culture. untitled.bmp Handys four dimension of organizational cultures: Cultures are classified into four major types, Handy described the four of them. Power culture: Handy illustrates the power culture as a spiders web, with the all-important spider sitting in the centre. Typically found in small organizations, everything turns around the main person, all decision taken is made by them and they preserve absolute authority in whatever situation. The success of power culture depends on the capabilities of the focal person. Organizations with this type of culture can respond quickly to events, but they are heavily dependent for their continued success on the abilities of the people at the centre; succession is a critical issue. Role culture: The role culture can be illustrated as a building supported by columns and beams: each column and beam has a specific role to playing keeping up the building. This type of culture is based on the existence of procedures and rule frameworks. The hierarchy and bureaucracy dominate this type of organization. Position is the main power source in the role culture as well as rules and procedures are the chief methods of influence. It finds it difficult to adapt to change; it is usually slow to perceive the need for it and to respond appropriately. Task Culture: Task culture is job-or project-oriented, and its accompanying structure can be best represented as a net. This type culture uses a small team approach, where people are highly skilled and specialized in their own area of expertise. Tendency to change to a role or power culture when resources are limited or when the whole organization is unsuccessful. The expertise within this type of organization is vested in the individual within it and it is them who must be organized in way that it meets the needs of the business. Person Culture: Person culture is an unusual culture in which individuals believe themselves superior to the organization. Clearly, not many organizations can exist with this sort of culture, or produce it, since organizations tend to have some form of corporate objective over and above the personal objectives of those who comprise them. Change Management: Change Theory: Kurt Lewin(1890-1947) wan an American social psychologist who contribute much to the understanding of group dynamics. His model state that changing an organization requires that we shake it out of its equilibrium, effect changes while it is unstable and then allow it to settle into the new, desired equilibriumà ¢Ã¢â€š ¬Ã‚ ¦. He proposed a three stage theory of change commonly reffered to as unfreezing, change and refreezing. Kurt Lewins Model: Lewins model has influenced many later theory of change management. It describes the way in which many managers plan both strategic and operational change. The three levels are: unfreezing, change and refreezing. Unfreezing involve group discussions in which individuals experience others views and begin to adapt their own. Unfreezing means that destabilizing the present balance of forces that gives the organization or business its stability. He argued that this destabilizing process helps to overcome resistance to change. Change involves moving the unbalanced system in the desire direction. It has sometimes been applied more strictly than the intended. Refreezing is the final step of Lewins three step model, which refers of integrating the change into the organization and resuming the organization actions to regain its equilibrium. Conclusion Recommendation: Conflict happens everywhere. Conflict and negotiation are aspects of operating a business. Business owners face conflict with partners, managers, employees and the general public. Negotiation is often necessary to create an amicable solution for all parties involved in the conflict. Many small or home-based businesses avoid internal conflict and negotiation because owners are primarily responsible for completing business functions. However, external conflict and negotiation occur for most companies in the business environment.

Analysis of the Capital Assets Pricing Model

Analysis of the Capital Assets Pricing Model Chapter I The QUARREL ON THE CAPM: A LITERATURE SURVEY Abstract The current chapter has attempted to do three things. First it presents an overview on the capital asset pricing model and the results from its application throughout a narrative literature review. Second the chapter has argued that to claim whether the CAPM is dead or alive, some improvements on the model must be considered. Rather than take the view that one theory is right and the other is wrong, it is probably more accurate to say that each applies in somewhat different circumstances (assumptions). Finally the chapter has argued that even the examination of the CAPMs variants is unable to solve the debate into the model. Rather than asserting the death or the survival of the CAPM, we conclude that there is no consensus in the literature as to what suitable measure of risk is, and consequently as to what extent the model is valid or not since the evidence is very mixed. So the debate on the validity of the CAPM remains a questionable issue. 1. INTRODUCTION The traditional capital assets pricing model (CAPM), always the most widespread model of the financial theory, was prone to harsh criticisms not only by the academicians but also by the experts in finance. Indeed, in the last few decades an enormous body of empirical researches has gathered evidences against the model. These evidences tackle directly the models assumptions and suggest the dead of the beta (Fama and French, 1992); the systematic risk of the CAPM. If the world does not obey to the models predictions, it is maybe because the model needs some improvements. It is maybe because also the world is wrong, or that some shares are not correctly priced. Perhaps and most notably the parameters that determine the prices are not observed such as information or even the returns distribution. Of course the theory, the evidence and even the unexplained movements have all been subject to much debate. But the cumulative effect has been to put a new look on asset pricing. Financial Researchers have provided both theory and evidence which suggest from where the deviations of securities prices from fundamentals are likely to come, and why could not be explained by the traditional CAPM. Understanding security valuation is a parsimonious as well as a lucrative end in its self. Nevertheless, research on valuation has many additional benefits. Among them the crucial and relatively neglected issues have to do with the real consequences of the models failure. How are securities priced? What are the pricing factors and when? Once it is recognized that the models failure has real consequences, important issues arise. For instance the conception of an adequate pricing model that accounts for all the missing aspects. The objective of this chapter is to look at different approaches to the CAPM, how these have arisen, and the importance of recognizing that theres no single ‘right model which is adequate for all shares and for all circumstances, i.e. assumptions. We will, so move on to explore the research task, discuss the goodness and the weakness of the CAPM, and look at how different versions are introduced and developed in the literature. We will, finally, go on to explore whether these recent developments on the CAPM could solve the quarrel behind its failure. For this end, the recent chapter is organized as follows: the second section presents the theoretical bases of the model. The third one discusses the problematic issues on the model. The fourth section presents a literature survey on the classic version of the model. The five section sheds light on the recent developments of the CAPM together with a literature review on these versions. The next one raises the quarrel on the model and its modified versions. Section seven concludes the paper. 2. THEORETICAL BASES OF THE CAPITAL ASSET PRICING MODEL In the field of finance, the CAPM is used to determine, theoretically, the required return of an asset; if this asset is associated to a well diversified market portfolio while taking into account the non diversified risk of the asset its self. This model, introduced by Jack Treynor, William Sharpe and Jan Mossin (1964, 1965) took its roots of the Harry Markowitzs work (1952) which is interested in diversification and the modern theory of the portfolio. The modern theory of portfolio was introduced by Harry Markowitz in his article entitled â€Å"Portfolio Selection, appeared in 1952 in the Journal of Finance. Well before the work of Markowitz, the investors, for the construction of their portfolios, are interested in the risk and the return. Thus, the standard advice of the investment decision was to choose the stocks that offer the best return with the minimum of risk, and by there, they build their portfolios. On the basis of this point, Markowitz formulated this intuition by resorting to the diversifications mathematics. Indeed, he claims that the investors must in general choose the portfolios while getting based on the risk criterion rather than to choose those made up only of stocks which offer each one the best risk-reward criterion. In other words, the investors must choose portfolios rather than individual stocks. Thus, the modern theory of portfolio explains how rational investors use diversification to optimize their portfolio and what should be the price of an asset while knowing its systematic risk. Such investors are so-called to meet only one source of risk inherent to the total performance of the market; more clearly, they support only the market risk. Thus, the return on a risky asset is determined by its systematic risk. Consequently, an investor who chooses a less diversified portfolio, generally, supports the market risk together with the uncertaintys risk which is not related to the market and which would remain even if the market return is known. Sharpe (1964) and Linter (1965), while basing on the work of Harry Markowitz (1952), suggest, in their model, that the value of an asset depends on the investors anticipations. They claim, in their model that if the investors have homogeneous anticipations (their optimal behavior is summarized in the fact of having an efficient portfolio based on the mean-variance criterion), the market portfolio will have to be the efficient one while referring to the mean-variance criterion (Hawawini 1984, Campbell, Lo and MacKinlay 1997). The CAPM offer an estimate of a financial asset on the market. Indeed, it tries to explain this value while taking into account the risk aversion, more particularly; this model supposes that the investors seek, either to maximize their profit for a given level of risk, or to minimize the risk taking into account a given level of profit. The simplest mean-variance model (CAPM) concludes that in equilibrium, the investors choose a combination of the market portfolio and to lend or to borrow with proportions determined by their capacity to support the risk with an aim of obtaining a higher return. 2.1. Tested Hypothesis The CAPM is based on a certain number of simplifying assumptions making it applicable. These assumptions are presented as follows: The markets are perfect and there are neither taxes nor expenses or commissions of any kind; All the investors are risk averse and maximize the mean-variance criterion; The investors have homogeneous anticipations concerning the distributions of the returns probabilities (Gaussian distribution); and The investors can lend and borrow unlimited sums with the same interest rate (the risk free rate). The aphorism behind this model is as follows: the return of an asset is equal to the risk free rate raised with a risk premium which is the risk premium average multiplied by the systematic risk coefficient of the considered asset. Thus the expression is a function of: The systematic risk coefficient which is noted as; The market return noted; The risk free rate (Treasury bills), noted This model is the following: Where: ; represents the risk premium, in other words it represents the return required by the investors when they rather place their money on the market than in a risk free asset, and; ; corresponds to the systematic risk coefficient of the asset considered. From a mathematical point of view, this one corresponds to the ratio of the covariance of the assets return and that of the market return and the variance of the market return. Where: ; represents the standard deviation of the market return (market risk), and ; is the standard deviation of the assets return. Subsequently, if an asset has the same characteristics as those of the market (representative asset), then, its equivalent will be equal to 1. Conversely, for a risk free asset, this coefficient will be equal to 0. The beta coefficient is the back bone of the CAPM. Indeed, the beta is an indicator of profitability since it is the relationship between the assets volatility and that of the market, and volatility is related to the returns variations which are an essential element of profitability. Moreover, it is an indicator of risk, since if this asset has a beta coefficient which is higher than 1, this means that if the market is in recession, the return on the asset drops more than that of the market and less than it if this coefficient is lower than 1. The portfolio risk includes the systematic risk or also the non diversified risk as well as the non systematic risk which is known also under the name of diversified risk. The systematic risk is a risk which is common for all stocks, in other words it is the market risk. However the non systematic risk is the risk related to each asset. This risk can be reduced by integrating a significant number of stocks in the market portfolio, i.e. by diversifying well in advantage (Markowitz, 1985). Thus, a rational investor should not take a diversified risk since it is only the non diversified risk (risk of the market) which is rewarded in this model. This is equivalent to say that the market beta is the factor which rewards the investors exposure to the risk. In fact, the CAPM supposes that the market risk can be optimized i.e. can be minimized the maximum. Thus, an optimal portfolio implies the weakest risk for a given level of return. Moreover, since the inclusion of stocks diversifies in advantage the portfolio, the optimal one must contain the whole stocks on the market, with the equivalent proportions so as to achieve this goal of optimization. All these optimal portfolios, each one for a given level of return, build the efficient frontier. Here is the graph of the efficient frontier: The (Markowitz) efficient frontier The efficient frontier Lastly, since the non systematic risk is diversifiable, the total risk of the portfolio can be regarded as being the beta (the market risk). 3. Problematic issues on the CAPM Since its conception as a model to value assets by Sharpe (1964), the CAPM has been prone to several discussions by both academicians and experts. Among them the most known issues concerning the mean variance market portfolio, the efficient frontier, and the risk premium puzzle. 3.1 The mean-variance market portfolio The modern portfolio theory was introduced for the first time by Harry Markowitz (1952). The contribution of Markowitz constitutes an epistemological shatter with the traditional finance. Indeed, it constitutes a passageway from an intuitive finance which is limited to advices related to financial balance or to tax and legal nature advices, to a positive science which is based on coherent and fundamental theories. One allots to Markowitz the first rigorous treatment of the investor dilemma, namely how obtaining larger profits while minimizing the risks. 3.2 The efficient frontier 3.3 The equity premium puzzle 4. Background on the CAPM â€Å"The attraction of the CAPM is that it offers powerful and intuitively pleasing predictions about how to measure risk and the relation between expected return and risk. Unfortunately, the empirical record of the model is poor poor enough to invalidate the way it is used in applications. The CAPMs empirical problems may reflect theoretical failings, the result of many simplifying assumptions.† Fama and French, 2003, â€Å"The Capital Asset Pricing Model: Theory and Evidence†, Tuck Business School, Working Paper No. 03-26 Being a theory, the CAPM found the welcome thanks to its circumspect elegance and its concept of good sense which supposes that a risk averse investor would require a higher return to compensate for supported the back-up risk. It seems that a more pragmatic approach carries out to conclude that there are enough limits resulting from the empirical tests of the CAPM. Tests of the CAPM were based, mainly, on three various implications of the relation between the expected return and the market beta. Firstly, the expected return on any asset is linearly associated to its beta, and no other variable will be able to contribute to the increase of the explanatory power. Secondly, the beta premium is positive which means that the market expected return exceeds that of individual stocks, whose return is not correlated with that of the market. Lastly, according to the Sharpe and Lintner model (1964, 1965), stocks whose return is not correlated with that of the market, have an expected return equal to the risk free rate and a risk premium equal to the difference between the market return and the risk free rate return. In what follows, we are going to examine whether the CAPMs assumptions are respected or not through the empirical literature. Starting with Jensen (1968), this author wants to test for the relationship between the securities expected return and the market beta. For this reason, he uses the time series regression to estimate for the CAPM ´ s coefficients. The results reject the CAPM as for the moment when the relationship between the expected return on assets is positive but that this relation is too flat. In fact, Jensen (1968) finds that the intercept in the time series regression is higher than the risk free rate. Furthermore, the results indicate that the beta coefficient is lower than the average excess return on the market portfolio. In order to test for the CAPM, Black et al. (1972) work on a sample made of all securities listed on the New York Stock Exchange for the period of 1926-1966. The authors classify the securities into ten portfolios on the basis of their betas.They claim that grouping the securities with reference to their betas may offer biased estimates of the portfolio beta which may lead to a selection bias into the tests. Hence, so as to get rid of this bias, they use an instrumental variable which consists of taking the previous periods estimated beta to select a securitys portfolio grouping for the next year. For the estimate of the equation, the authors use the time series regression. The results indicate, firstly, that the securities associated to high beta had significantly negative intercepts, whereas those with low beta had significantly positive intercepts. It was proved, also, that this effect persists overtime. Hence, these evidences reject the traditional CAPM. Secondly, it is found that the relation between the mean excess return and beta is linear which is consistent with the CAPM. Nevertheless, the results point out that the slopes and intercepts in the regression are not reliable. In fact, during the prewar period, the slope was sharper than that predicted by the CAPM for the first sub period, and it was flatter during the second sub period. However, after that, the slope was flatter. Basing on these results, Black, Fischer, Michael C. Jensen and Myron Scholes (1972) conclude that the traditional CAPM is inconsistent with the data. Fama and MacBeth (1973) propose another regression method so as to overcome the problem related to the residues correlation in a simple linear regression. Indeed, instead of estimating only one regression for the monthly average returns on the betas, they propose to estimate regressions of these returns month by month on the betas. They include all common stocks traded in NYSE from 1926 to 1968 in their analysis. The monthly averages of the slopes and intercepts, with the standard errors of the averages, thus, are used to check, initially, if the beta premium is positive, then to test if the averages return of assets which are not correlated with the market return is from now on equal to the average of the risk free rate. In this way, the errors observed on the slopes and intercepts are directly given by the variation for each month of the regression coefficients, which detect the effects of the residues correlation over the variation of the regression. Their study led to three main results. At first, the relationship between assets return and their betas in an efficient portfolio is linear. At second, the beta coefficient is an appropriate measure of the securitys risk and no other measure of risk can be a better estimator. Finally, the higher the risk is, the higher the return should be. Blume and Friend (1973) in their paper try to examine theoretically and empirically the reasons beyond the failure of the market line to explain excess return on financial assets. The authors estimate the beta coefficients for each common stock listed in the New York Stock Exchange over the period of January 1950 to December 1954. Then, they form 12 portfolios on the basis of their estimated beta. They afterwards, calculate the monthly return for each portfolio. Third, they calculate the monthly average return for portfolios from 1955 to 1959. These averaged returns were regressed to obtain the value of the beta portfolios. Finally, these arithmetic average returns were regressed on the beta coefficient and the square of beta as well. Through, this study, the authors point out that the failure of the capital assets pricing model in explaining returns maybe due to the simplifying assumption according to which the functioning of the short-selling mechanism is perfect. They defend their point of view while resorting to the fact that, generally, in short sales the seller cannot use the profits for purchasing other securities. Moreover, they state that the seller should make a margin of roughly 65% of the sales market value unless the securities he owns had a value three times higher than the cash margin. This makes a severe constraint on his short sales. In addition to that, the authors reveal that it is more appropriate and theoretically more possible to remove the restriction on the short sales than that of the risk free rate assumption (i.e., to borrow and to lend on a unique risk free rate). The results show that the relationship between the average realized returns of the NYSE listed common stocks and their correspondent betas is almost linear which is consistent with the CAPM assumptions. Nevertheless, they advance that the capital assets pricing model is more adequate for the estimates of the NYSE stocks rather than other financial assets. They mention that this latter conclusion is may be owed to the fact that the market of common stocks is well segmented from markets of other assets such as bonds. Finally, the authors come out with the two following conclusions: Firstly, the tests of the CAPM suggest the segmentation of the markets between stocks and bonds. Secondly, in absence of this segmentation, the best way to estimate the risk return tradeoff is to do it over the class of assets and the period of interest. The study of Stambaugh (1982) is interested in testing the CAPM while taking into account, in addition to the US common stocks, other assets such as, corporate and government bonds, preferred stocks, real estate, and other consumer durables. The results indicate that testing the CAPM is independent on whether we expand or not the market portfolio to these additional assets. Kothari Shanken and Sloan (1995), show that the annual betas are statistically significant for a variety of portfolios. These results were astonishing since not very early, Fama and French (1992), found that the monthly and the annual betas are nearly the same and are not statistically significant. The authors work on a sample which covers all AMEX firms for the period 1927-1990. Portfolios are formed in five different ways. Firstly, they from 20 portfolios while basing only on beta. Secondly, 20 portfolios by grouping on size alone. Thirdly, they take the intersection of 10 independent beta or size to obtain 100 portfolios. Then, they classify stocks into 10 portfolios on beta, and after that into 10 portfolios on size within each beta group. They, finally, classify stocks into 10 portfolios on size and then into 10 portfolios on beta within each size group. They use the GRSP equal weighted portfolio as a proxy for the whole market return market. The cross-sectional regression of monthly return on beta and size has led to the following conclusions: On the one hand, when taking into account only the beta, it is found that the parameter coefficient is positive and statistically significant for both the sub periods studied. On the other hand, it is demonstrated that the ability of beta and size to explain cross sectional variation of the returns on the 100 portfolios ranked on beta given the size, is statistically significant. However, the incremental economic benefit of size given beta is relatively small. Fama and French published in 1992 a famous study putting into question the CAPM, called since then the Beta is dead paper (the article announcing the death of Beta). The authors use a sample which covers all the stocks of the non-financial firms of the NYSE, AMEX and NASDAQ for the period of the end of December 1962 until June 1990. For the estimate of the betas; they use the same test as that of Fama and Macbeth (1973) and the cross-sectional regression. The results indicate that when paying attention only to the betas variations which are not related to the size, it is found that the relation between the betas and the expected return is too flat, and this even if the beta is the only explanatory variable. Moreover, they show that this relationship tend to disappear overtime. In order to verify the validity of the CAPM in the Hungarian stock market, Andor et al. (1999) work on daily and monthly data on 17 Hungarian stocks between the end of July 1991 and the beginning of June 1999. To proxy for the market portfolio the authors use three different indexes which are the BUX index, the NYSE index, and the MSCI world index. The regression of the stocks return against the different indexes return indicates that the CAPM holds. Indeed, in all cases it is found that the return is positively associated to the betas and that the R-squared value is not bad at all. They conclude, hence, that the CAPM is appropriate for the description of the Hungarian stock market. For the aim of testing the validity of the CAPM, Kothari and Jay Shanken (1999), study the one factor model with reference to the size anomaly and the book to market anomaly. The sample used in their study contains annual return on portfolios from the GRSP universe of stocks. The portfolios are formed every July from 1927 to 1992. The formation procedure is the following; every year stocks are sorted on the basis of their market capitalization and then on their betas while regressing the past returns on the GRSP equal weighted index return. They obtain, hence, ten portfolios on the basis of the size. Then, the stocks in each size portfolio are grouped into ten portfolios based on their betas. They repeat the same procedure to obtain the book-to-market portfolios. Using the Fama and MacBeth cross-sectional regression, the authors find those annual betas perform well since they are significantly associated to the average stock returns especially for the period 1941-1990 and 1927-1990. Moreover, the ability of the beta to predict return with reference to the size and the book to market is higher. In a conclusion, this study is a support for the traditional CAPM. Khoon et al. (1999), while comparing two assets pricing models in the Malaysian stock exchange, examine the validity of the CAPM. The data contains monthly returns of 231 stocks listed in the Kuala Lumpur stock exchange over the period of September 1988 to June 1997. Using the cross section regression (two pass regression) and the market index as the market portfolio, the authors find that the beta coefficient is sometimes positive and some others negative, but they do not provide any further tests. In order to extract the factors that may affect the returns of stocks listed in the Istanbul stock exchange, Akdeniz et al. (2000)make use of monthly return of all non financial firms listed in the up mentioned stock market for the period that spans from January 1992 to December 1998. They estimate the beta coefficient in two stages using the ISE composite index as the market portfolio. First, they employ the OLS regression and estimate for the betas each month for each stock. Then, once the betas are estimated for the previous 24 months (time series regression), they rank the stocks into five equal groups on the basis of the pre-ranking betas and the average portfolio beta is attributed to each stock in the portfolio. They, afterwards, divide the whole sample into two equal sub-periods and the estimation procedure is done for each sub-period and the whole period as well. The results from the cross sectional regression, indicate that the return has no significant relationship with the market beta. This variable does not appear to influence cross section variation in all the periods studied (1992-1998, 1992-1995, and 1995-1998). In a relatively larger study, Estrada (2002) investigates the CAPM with reference to the downside CAPM. The author works on a monthly sample covering the period that spans from 1988 to 2001 (varied periods are considered) on stocks of 27 emerging markets. Using simple regression, the authors find that the downside beta outperforms the traditional CAPM beta. Nevertheless, the results do not support the rejection of the CAPM from two aspects. Firstly, it was found that the intercept from the regression is not statistically different from zero. Secondly, the beta coefficient is positive and statistically significant and the explanatory power of the model is about 40%. This result stems for the conclusion according to which the CAPM is still alive within the set of countries studied. In order to check the validity of the CAPM, and the absence of anomalies that must be incorporated to the model, Andrew and Joseph (2003) try to investigate the ability of the model to predict book-to market portfolios. If it is the case, then the CAPM captures the Book-to-market anomaly and theres no need to further incorporate it in the model. For this intention, the authors work on a sample that covers the period of 1927-2001 and contains monthly data on stocks listed in the NYSE, AMEX, and NASDAQ. So as to form the book-to-market portfolios, they use, alike Fama and French (1992), the size and the book-to-market ratio criterion. To estimate for the market return, they use the return on the value weighted portfolios on stocks listed in the pre-cited stock exchanges and to proxy for the risk free rate; they employ the one-month Treasury bill rate from Ibbotson Associates. They, afterwards, divide the whole period into two laps of time; the first one goes from July 1927 to June 1963, and the other one span from July 1963 to the end of 2001. Using asymptotic distribution the results indicate that the CAPM do a great job over the whole period, since the intercept is found to be closed to zero, but there is no evidence for a value premium. Hence, they conclude that the CAPM cannot be rejected. However, for the pre-1963 period the book to market premium is not significant at all, whereas for the post-1963 period this premium is relatively high and statistically significant. Nevertheless, when accounting for the sample size effect, the authors find that there is an overall risk premium for the post-1963 period. The authors conclude then that, taken as a whole, the study fails to reject the null that the CAPM holds. This study points to the necessity to take into account the small sample bias. Fama and French (2004), estimate the betas of stocks provided by the CRSP (Center for Research in Security Prices of the University of Chicago) of the NYSE (1928-2003), the AMEX (1963-2003) and the NASDAQ (1972-2003). They form, thereafter, 10 portfolios on the basis of the estimated betas and calculate their return for the eleven months which follow. They repeat this process for each year of 1928 up to 2003. They claim that, the Sharpe and Lintner model, suppose that the portfolios move according to a linear line with an intercept equal to risk free rate and a slope which is equal to the difference between the expected return on the market portfolio and that of the risk free rate. However, their study, and in agreement with the previous ones, confirms that the relation between the expected return on assets and their betas is much flatter than the prediction of the CAPM. Indeed, the results indicate that the expected return of portfolios having relatively lower beta are too high whereas expected return of those with higher beta is too low. Moreover, these authors indicate that even if the risk premium is lower than what the CAPM predicts, the relation between the expected return and beta is almost linear. This latter result, confirms the CAPM of Black which assumes that only the beta premium is positive. This means, analogically, that only the market risk is rewarded by a higher return. In order to test for the consistency of the CAPM with the economic reality, Thierry and Pim (2004) use monthly return of stocks from the NYSE, NASDAQ, and AMEX for the period that spans from 1926-2002. The one -month US Treasury bill is used as a proxy for the risk free rate, The CRPS total return index which is a value-weighted average of all US stocks included in this study is used as a proxy for the market portfolio. They sort stocks into ten deciles portfolios on the basis of historical 60 months. They afterwards, calculate for the following 12 months their value weighted returns. They obtain, subsequently, 100 beta-size portfolios. The results from the time series regression indicate, firstly, that the intercepts are statistically indifferent from zero. Secondly, it is found that the betas coefficients are all positive. Furthermore, in order to check the robustness of the model, the authors split the whole sample into sub-samples of equal length (432 months). The results indicate, also, that for all the periods studied the intercepts are statistically not different from zero except for the last period. In his empirical study, Blake T (2005) works on monthly stocks return on 20 stocks within the SP 500 index during January 1995-December 2004. The SP 500 index is used as the market portfolio and the 3-month Treasury bill in the Secondary Market as the risk free rate. His methodology can be summarized as follows; the excess return on each stock is regressed against the market excess return. The excess return is taken as the sample average of each stock and the market as well. After estimating of the betas, these values are used to verify the validity of the CAPM. The coefficient of beta is estimated by regressing estimated expected excess stock returns on the estimates of beta and the regression include intercept and the residual squared so as to measure the non systematic risk. The results confirm the validity of the CAPM through its three major assumptions. In fact, the null hy

Essay --

What is one of the biggest problems in Latin America today? Is it the slums that some people live in or the way poor people are treated? Both these ideas connect to Latin America’s largest problem today, the major income gap between the rich and the poor. When people think of Latin America in modern day some will think of the rich citizens who live prosperous lives, but many of them also think of the poor folk who live in slums such like the favelas of Rio. This might not seem like such a big issue to us, but for the people of Latin America this could not only affect their economy, but their politics as well. So, why is this important, what does this have to do with anything? Other than a political or economic problem the income gap is a matter of social justice. How can people live like that? Why do 10% of the richest get half the income while the poorest 10% only get 0.8%? This is an unfair way of living. How is this important one might ask. Well these statistics, and the reality could make the poor angry. Numerous revolts have occurred and what is to say that the needy will not do that again. This is a matter of social justice that needs to be fixed. Other research also shows that the unprivileged have a shorter lifespan than middle and upper class citizens. This could lead to a drop in Latin America’s population and also drop the employment rate. Overall there are many reasons why this pressing issue of the income gap is so important but the real question is, how will this impact Latin America as a whole. Many of the reasons why the income gap is important tie into how it impacts Latin America. People living in the slums are prone to catching diseases. This could lead up to the spreading of those diseases and many people be... ...r government and help reduce the income gap that exists today. Overall the government can help narrow this income gap in many ways if they tried. In conclusion the increasing income gap in Latin America is becoming a big issue in modern day society. Not only is it affecting the citizens of Latin America but someday this can also lead up to us, the people of the US. The rich could even, eventually take over leaving the poor in an even worse state than before. However, with help we can change this gap and aid the poor to get jobs to help the growing economy of Latin America. With all the people living in these countries they could become a very successful area of the world only if this unfair treatment is stopped. In the long run the only thing that is keeping Latin America from becoming prosperous, (all around), is the wide income gap between the rich and the poor.

Robert Frost’s Fire and Ice Essay -- Fire and Ice Robert Frost Poems E

Robert Frost’s Fire and Ice Fire and Ice is a popular poem written in 1923 by Robert Frost. It is a very well known poem and is used in many high schools and colleges today. Many students along with various critics read this poem as Frost’s idea as to how the world is going to end. People also take this in a Biblical sense, because the passage that God states the next time he destroys the world, it will be in fire. He blatantly states in the first lines, â€Å"Some say the world will end in fire, Some say in ice†, which leads many critics to believe the simplicity of this poem was to be taken as simple and to the point. However, the poem was written in the roaring twenties, which is why I believe Frost had a deeper meaning attached than how the world was going to end. Opposing most critics with their view of this idea, I believe Robert Frost’s â€Å"Fire and Ice† is about love. Fire being the love itself along with passion, ice is the lack of love, rather than a view on the end of the world. Katherine Kearns states that although you have to make a decision between the language, it still seems as if Frost is trying to allude to the end of the world (Cambridge University). Frost often writes in a very simply form, which is why critics are constantly led to believe Frost had no double meaning out of the poem. The form of ‘Fire and Ice’ is again, simple in the writing, leaving it easy to see the surface meaning and not look any deeper. The form and simple rhyme scheme do not give readers the idea that the meaning would be so philosophical. Through a deeper reading of the poem, I think Frost is trying to discover the distinction between love and hate through symbolism. Fire is love or burning desire. The ice symb... ...rost was talking about love. In some sense, everyone has felt the effects of a burning love or lack of love, taken over by the feeling of coldness. Digging for a deeper meaning of the poem, it is evident Frost was not only talking about the end of the world, but also the end of a person. The effects of love and hate are enough to put an end to a person, as are the effects of fire and ice to put an end to the world. Works Cited Kearns, Katherine, â€Å"Fire and Ice†. On Fire and Ice. 1994. 17 September 2005. http://www.english.uiuc.edu/ Pobojewski, Sally. â€Å"This Is the Way the World Ends.† LSAmagazine 23.1 (Fall 1999): 28-29. Sangiorgio, Yvette. â€Å"Fire and Ice† Fire and Ice- Robert Frost. 12 May 2001. 17 September 2005. http://www.cs.rice.edu/ Serio, John N. â€Å"Fire and Ice†. On Fire and Ice. 1994. 17 September 2005. http://www.english.uiuc.edu/

H Report

Table of contents 1. Introduction 2. Macro environmental analysis (PESTLE- political, economic, social, technology, legal, ecological) 3. Customer analysis 4. Market description 5. SWOT analysis (Strengths, weaknesses, opportunity, threats) 6. Conclusion and Recommendations 7. References P. 1 D002 T2242531 Introduction H&M (Hennes & Mauritz) is a global fashion brand and retail clothing company founded in Sweden, 1947 by Erling Persson.H & M founder Erling Persson because of a U. S. tour, inspired him to open a low price, high-class women's fashion clothing store ideas. (â€Å"H;M offers fashion and quality at the best price†, 2011) The first Hennes opened in Vasteras, which is the predecessor of H;M. In 60s, he expanded Hennes in most parts of Sweden, developed new markets in neighboring Norway and Denmark in 1964 and 1967. In order to expand the market share and product lines in Stockholm, Persson acquired a company called Mauritz Widforss, firearms and hunting supply store s to get the men`s clothing usiness for Hennes. After that, Persson renamed as Hennes ; Mauritz and still in use. Until the 21st century, H;M began to expand business in Asia. It has over 2,300 stores in 41 countries and as of 2011 employed around 87,000 people for now. H;M designer collaborations with plenty of famous designers and celebrities, such as Karl Lagerfeld, Roberto Cavalli, Stella McCartney, Comme des Garcons, Viktor ; Rolf, Madonna, Lanvin and Sonia Rykiel. (â€Å"H;M-Wikipedia†, 2011) The report is to analyze about the H;M Company (Hennes; Mauritz).This includes the Marco environmental analysis (PESTLE- political, economic, social, technology, legal, ecological), customer analysis, market description, SWOT analysis (Strengths, weaknesses, opportunity, threats), after that, the conclusion, recommendations and references will be provided. P. 2 D002 T2242531 Environmental Analysis (PESTLE) PESTLE means political, economic, social, technological, legal and environm ental. Political: EU and national laws; codes and practice (David Jobber, 2007, p. 3) H;M Company is following the enactment of Swedish and the actions of Swedish companies, as H;M is a Swedish brand and company. Nevertheless, if there is an H;M store located in Cambodia therefore that H;M store  has to follow the Cambodia government legislation. (â€Å"Worldnews. com†. 2011) For instance, there has an article posted on hm. com about Royal Government of Cambodia is considering amendment to article 67 and 73 of Cambodia enactment. This affects H;M as it injures their short-term contracts.If there are changes in laws, H;M has to change the purposes or operations to fit the requirements. Economic: economic growth; unemployment; interest and exchange rate; global economic trends (David Jobber, 2007, p. 43) H;M Company has over 87,000 employees in about 41 countries for now, they target growth around 10-15 percent new stores per year. (â€Å"H;M offers fashion and quality at th e best price†, 2011) It shows H;M create a large number of Employment opportunities for the sociaty, conducive to economic growth.Social: changes in world population, age distribution and household structure; attitude and lifestyle changes; subcultures within and across national boundaries; consumerism (David Jobber, 2007, p. 43) H;M makes sure all products can meet customer`s anticipation. All products have to go through over 100 quality controllers, to inspect if the quality of the product can meet the quality and safety standard. That guarantees that H;M customers can use H;M products safely.H;M Company supports UNICEF in Uzbekistan to show their social responsibility and tries to prevent child work in cotton factory of Uzbekistan. These projects raise the awareness of the right of the child and give safeguard. H;M is going to donate US$ 150,000 to UNICEF’s work in Uzbekistan. (â€Å"IPS ipsnews. net†, 2011) P. 3 D002 T2242531 Technological: new product and p rocess technologies; new materials (David Jobber, 2007, p. 43)H;M has two types of technology that will affect the business that are media technology and printing machines. In the operation of making clothes some of certain colors and designs need some unusual or more high-class machine to finish therefore H;M can keep the product in a quality. (â€Å"Adpunch. org†, 2010) The evolution of media technology will help H;M become popular through the Internet and advertise. The website and media have to be updated to become more eye-catching and disseminate their news events, it can extend the exposure of H;M to the ommunity. Legal: EU and national laws; codes of practice (David Jobber, 2007, p. 43) H;M Company cares about the protection of child; however so far this year, the collective fainting incident at the plant collapsed the number of employees has more than one thousand five hundred people. The labor department of Cambodia said the reason of this trend is including the use of pesticides, dust, heat, perssure and carry the goods to move goods consuming high physical work, hundreds of workers gathered in the small and closed environment.They believe that part of the plant is really have problem, such as in poorly ventilated conditions using specific chemical agents. Community Legal Education Centre claimed that the lack of further work in Cambodia environmental monitoring system. H;M said the company deeply concerned about the incident and seeking to investigate. (â€Å"International Labour Organization†, 1996-2011) Environmental: global warming; pollution; energy and other scarce resources; environmentally friendly ingredients and components; recycling and non-wasteful packaging (David Jobber, 2007, p. 3) H;M is always caring about the environment, particularly the development of organic cotton. Plenty of people try to invent cotton against nature, for example, produce cotton with chemicals. In order to protect the environment and gain the good image for H;M Company. H;M Company has to follow roles that can protect the environment. (â€Å"H;M offers fashion and quality at the best price†, 2011) P. 4 D002 T2242531 Customer analysisH ; M is â€Å"fast, aggressive, accurate† as the main feature of the rapid rise of fast fashion, driven by global fashion trends. (â€Å"H;M offers fashion and quality at the best price†, 2011) They also describe its mission as â€Å"Fashion and quality at the best price. † H;M is used in â€Å"small, a variety† of product strategy, it breaks the traditional limit apparel industry, in the same season will continue to introduce new models for consumers to choose. H;M`s business scope has men`s, women`s, women`s underwear, children`s clothing and accessories.General characteristics of H;M`s clothes are rich in color choice, style wild simple, dynamic and fashionable, casual, comfortable, affordable, not expensive, therefore the products of H;M are suitable for t he students, young office ladies, travellers. (â€Å"Just-style†, 2011) They have set the target consumers group of young people, who aged around 15-30, this type of fashion buyer groups with a high degree of sensitivity and have some spending power, but do not have the ability to possess the regular consumption of high-class brand`s product. (â€Å"Inspiring customer experience†, 2010)For instance, there is a young woman, who may just graduated or still studying in university or high school. She cannot afford to buy high-class brand clothes, she might consider to buy H;M clothes, because H;M`s clothes are design by large number of famous designers and celebrities. This shows H;M attracts plenty of young girls who have high degree of sensitivity. P. 5 D002 T2242531 Market description Sweden`s H;M Company, full name Hennes ; Mamitz, by founder Erling Persson founded in Sweden in 1947, the clothing retail chain.Currently in Europe and North America 29 countries and regi ons have their retail stores. Annual sales of goods more than 5. 5 million, has become one of the Europe`s largest clothing retail chain. The major rival of H;M is ZARA. Spanish fashion brand ZARA is well known in Spain ranked first, third softball apparel retailer Inditex company`s brand, the company has nearly 2,000 stores worldwide, ZARA is one of nine brands if Inditex, the most famous flagship brand, is considered to be Europe`s most research value of the brand. Tony Hines and Margaret Bruce (2007)The success of both companies benefited from the use of unique marketing strategy. Two companies have taken on in the price of low-coast strategy. ZARA is target the consumer group has high income and high-educated young people, mainly 25-35 year-old customer layers, H;M has set the target consumer group of young people 15-30 years old. Two companies frequently updated fashion cheap products just to meet the needs of this population. H;M take the price lower than ZARA layer of strateg y. According to statistics, H;M fashion price is lower than ZARA about 30% to 50%.Tim Jackson and David Shaw (2009) In price discounts, H;M is using the less discount strategy, because all products of H;M are â€Å"small amount and variety†, for example, consumers who buy the first time, there is a risk of no longer buy, therefore they are often unable to wait until the end of the quarter or the end of the year discount. It is kind of psychological advantage of consumers. Almost all of the goods sold in a short time, leave only a small amount of undesired products at discount end of the quarter or the end of the year.H;M estimated 2005 pre-tax profit of 1. 4 billion, on sales of 6. 3 billion. (David Jobber, 2007,p. 35) P. 6 D002 T2242531 SWOT analysis SWOT means strengths, weaknesses, opportunities and threats. (David Jobber, 2007,p. 46) Strengths The main reason why H;M has become popular is low price. H;M provides good quality clothing, department store price that is extre mely unusual in many of today’s retailers.Another advantage of the H;M is the product delivery time, only less than 13 weeks, a project from the design to retail store, that is quite impressive for a international, low price retailer. (â€Å"Jing`s Marketing Blog†, 2011) In addition, they use guest designer bands and shop to keep the line fresh and special, at an affordable price, ability to reach a large target market to satisfy different fashion tastes, having a well-known brand name. Weaknesses Customers may think clothes to be low quality because of the low price, that is a type of psychological of some customers and the quality of service also is a problem for H;M.A large retail store, if there are only a few numbers of staff, they are unable to take care of all the customers. On the other hand, because the company buys a large number of means, there is no one can promise all the items will be sold out. That means their low price may have to be lower and lower to attract consumers to buy their products or means that H;M Company may have to pay additional storage space for these unsold items. (â€Å"H;M-Facebook†, 2011) Opportunities There will be a good opportunity launch some clothes are for elderly people. They can develop a new line for elderly people.I think it would be a good opportunity for H;M, because elderly people also want to wear fashion clothes with a nice, low price, I also think this opportunity can let H;M become more popular, also make more people aware of this brand H;M. Threat There is more and more new retailers appear in the market, such as ZARA, Forever 21, River island. These retailers undoubtedly formed a kind of competition, each firm also has their own marketing program, own characteristics, and the main threat is they are also using the same marketing strategy as H;M â€Å"good quality at a low price†.H;M has to create some new strategy to strong stay competitive. Tim Jackson and David Shaw (2009) P. 7 D002 T2242531 Conclusion and Recommendation The biggest threat for H;M is other retailers from other countries, they are also have plenty of capital and technology to against H;M, therefore H;M should have some innovation actions and strategies to increase the competitive in the fashion market to maintain and attract more customers.First, rely on H;M`s standardized management capabilities to continuously improve their management level and the quality of products. Second, full play to their favorable factors and development, and vigorously promote the clothing company with foreign strategic cooperation. Third, appropriate under the circumstances of the adjustment value, adjusted by way of sale. References David Jobber (2007) Principles and Practice of marketing 5th Edition Fast fashion. (2011). Retrieved 21 October 2011 from the Wikipedia website: http://en. wikipedia. rg/wiki/Fast_fashion H;M Discussions (2011). Retrieved 1 January 2009 from the Facebook website: http://www. face book. com/board. php? uid=21415640912 H;M readies itself for sourcing challenge (2010) Retrieved 12 June 2010 from the just-style. com website: http://www. just-style. com/analysis/hm-readies-itself-for-sourcing-challenge_id108103. aspx H;M experiments with technology driven campaign (2007) Retrieved 30 August 2007 from the Adpunch. org website: http://www. adpunch. org/entry/hm-experiments-with-technology-driven-campaign/ P. D002 T2242531 H;M-Cotton from Uzbekistan (2011) Retrieved 25 April 2009 from the H;M website: http://about. hm. com/gb/corporateresponsibility/supplychainworkingconditions/supplychainmonitoring/cottonfromuzbekistan__monitoringarticle5. nhtml H;M offers fashion and quality at the best price (2011) Retrieved 25 August 2011 from the H;M official website: http://www. hm. com/gb/ H;M in Cambodia (2004) Retrieved 17 May 2004 from the International Labor Organization website: http://www. lo. org/global/about-the-ilo/press-and-media-centre/videos/video-news-releases/W CMS_074487/lang–en/index. htm Hennes&Mauritz (H&M), AN HRM CASE STUDY (2009) Retrieved 12 September 2009 from the ideas and thoughts website: http://ideasthoughts. erruppackal. com/2009/09/hennes-mauritz-hm-an-hrm-case-study/ Hundreds of workers collapse at Cambodian H&M clothing factory (2011) Retrieved 29 August 2011 from the Worldnews. com website: http://article. wn. com/view/2011/08/29/Hundreds_of_workers_collapse_at_Cambodian_H_M_clothing_facto/Social Media strategies of H;M (2011) Retrieved 15 May 2011 from the Inspiring Customer Experience website: http://patperdue. com/social-media-strategies-of-hm-zara-and-esprit-analysis/ Tony Hines and Margaret Bruce (2007) Fashion marketing second edition Tim Jackson and David Shaw (2009) mastering fashion marketing UZBEKISTAN: Forced child labor kills (2011) Retrieved 19 October 2011 from the IPS ipsnews. net website: http://www. ipsnews. net/news. asp? idnews=105514 4P analysis of H;M (2010) Retrieved 24 October 2010 from the J ing`s Marketing Blog website: http://blogs. ubc. ca/jingwei/2010/10/24/4p-analysis-of-hm/ P. 9

Culture and Imperialism, a Review of Edward Said Essay

Edward Said remains one of the best selling and well known of the social and literary theorists that deal with identity and nation in the post-colonial global setting. This field is saturated with work dealing with culture and identity formation, post-modern â€Å"epistemic communities,† and most importantly, the relationship between context (ethnic, religious or economic) relative to the formation of such communities. There can be no question that the reading of Said’s book must take place within the context of the American neo-conservative drive to dominate the planet in the name of a vaporous â€Å"democracy,† or even â€Å"free markets. † And for this reason, it is important for the author to establish his view on the United States as a â€Å"conqueror† power primarily, as her early history can be reduced to the â€Å"settler mentality. † Transplants from the imperial center to the imperial hinterlands, for Said is basically the same as the slave societies functioning in the Carribean Islands, as his understanding of Austin shows. America is a slave power and a conquering power in that her development cannot be separated from the systematic pillaging of native traditions and lands. What makes America more interesting is her ability to absorb many traditions, and, from that, to create an identity in a rather counter-intuitive sort of way. Even further, the claim is that such an imperial power has the ability to create unity out of disunity; of creating an identity out of cacophony. Austria, Russia and the Ottomans are just three other examples of predatory powers creating unity out of disunity, or, even more strangely, creating the imperial idea precisely from the materials of disunity, both ethnic and religious. This kind of dialectic, i. e. identity from opposing elements, is central to Said’s concept of identity formation in the context of domination and exploitation. The central argument here is that identity formation has been poorly treated in the historiographic tradition both of the west and of the post-colonial world. Authors have tended to target the functional, â€Å"static† aspects of identity and culture, without understanding, as a whole, the nature of the social context. In other words, social and economic exploitation is as much a part of post-colonial identity as the more static elements of language. In his own ethnic identity, that of the Palestinian, Said can competently say that his own identity exists not in a vacuum, but as intrinsically part of the cultural formation deriving from Turkish, British and Jewish forms of colonial rule. Hence, there is no â€Å"Palestine,† as a cultural formula outside of the multi-ethnic scope of domination and violent colonialization. There is a culture, but it is a culture of â€Å"resistance,† a culture whose very formation exists in a matrix of humiliation. Hence, Said creates a dialectic of his own, following the more common Hegelian logical notion of the conclusion being manufactured though opposition. Identity, as a thesis, is a dialogue deriving from resistance to power. But even more, the antithesis, this identity formation derives at least in part from the â€Å"literary† (speaking broadly) production of the post-colonial center. In other words, after the experience of colonialism, the former metropole continues to dominate the subject peoples from the point of view of literature itself, in fact, a form of identity formation often overlooked in the historical literature. Lastly, as a synthesis, Said holds that a post colonial idea of identity of a formerly subject people is a creation whose final end is indeterminate, and even in general strokes, is vulnerable to critique. The synthesis here is itself an extremely pessimistic concept of identity that leaves the formerly dominated to be forever controlled by the mass-language modes of communication. Communication itself is a form of political power and colonial domination. It is a common idea, driving in modern times from Benedict Anderson and Eric Hobsbawm, that the â€Å"nation† or â€Å"ethnos† is a contrived entity. This does not negate its use as a variable in analysis, but it does show some light on the nature of â€Å"tradition† considered very broadly. In short, Anderson has famously made the argument that the ethnos is a â€Å"imagined community† where the individual envisions himself part of a heritage and a history he had no part in making, and cannot ever hope to â€Å"experience† as a single entity. It is a series of mental images rather than as a set of incontrovertible facts. Hobsbawm, for his part, holds that the ethnos or nation is the synthetic creation not merely of a series of images, but that these images are the direct creation of elites who have a specific interest in development a sense of â€Å"unity† among a formerly disunified people. Mass media, standardized language and an industrial economy are all necessary for such basic cultural standardization to take place. Hence, the idea of a nation, while still useful to the social sciences, remains an entity without actual substance; a monstrous creation rather than a natural growth (cf. 15-18). Said holds to these views, but of course, provides the reader with the more general and inclusive category of international exploitation. While this is a broad category, it remains concrete, since, given the identity of any specific ethnic group, close analysis of its history shows not a â€Å"development† of an ethnic â€Å"idea,† but rather a life of domination, exploitation and manipulation that has forced a hasty and uncritical sense of self that is itself a distortion and the worst form of image manipulation. It is â€Å"unnatural† to the extreme, and hence the global context is highly alienated, since the bulk of the human population subscribe (passively, to be sure) to a sense of self that is a mere reaction of the ethnic immune system (210).