Five Social Insurances and One Housing Fund Essay Example for Free

Five Social Insurances and One Housing Fund Essay According to figure 1, it showed that the pay ratio of Shanghai enterprise was higher than Beijing and Guangzhou while the ratio for individuals were the same. The reason of the high ratio fee is to protect the workers income, so that the workers would not need to pay half of their income for insurance payment. Therefore, the living standards for the workers would  keep in average. In this few years, the development of other cities in China was being fast and the insurance package was attractive to workers. So there was a competitive existed between Shanghai and the developing cities. The Shanghai enterprise wanted to retain their workers to stay in Shanghai for work and keep the quality and quantity of the business. Therefore, the standard for the percentage pay of enterprise would be higher than others. Once a worker reach the retire age, the worker will be entitled to receive the insurance premium. This policy would be one of the methods to attract and retain the local worker to work. On the other hand, as the housing provident fund was not a legal payment in the Labor Act. So the percentage for both enterprise and individuals in Shanghai was the same, 7% each. In the view of HR, the cost for the enterprise would be lower and the intense pressure would be less. And for the individual, they would save the money to buy a property. Lastly, Shanghai has done a good job in the 5 insurance and housing fund than other cities like Guangzhou. Although the enterprise need pay more than other cities, the workers would take the greatest benefits and be more loyal to the company. CHAPTER 3: IMPACTS ON EMPLOYER The social insurance system has implemented for several years, it is time to review its impacts on local enterprises in Shanghai, China. The most seriously the system imposed a heavy burden on operating cost of business. According to the Social Insurance Policy, enterprises should make a contribution to each of these types of social security on behalf of their employees. Employees are also required to make contribution to some of them. A Taiwaness enterprise in Shanghai reported the Law has increased its labour cost on insurance participation by 50 percent, which is mainly due to the extension of insurance coverage that leads to the rise in premium payment and related expenses. In 2010, urban pension, medical, unemployment, occupational injury and maternity insurance altogether recorded a person-time of 1.108 billion, 84 million more than that of 2009. The total income and expenditure of the National Social Insurance Fund reached RMB1.86 trillion and RMB1.48 trillion, increased by15.7% and 20.4% respectively when compared with those of 2009. 2 Professor Wang Yanzhong, Director, Labour and Socail Security Research Centre Chinese Academy of Social Science, Prospects and Impacts of Social Insurance Law Implementation, Road to China, Spring 2011 A significant part of the increased expenses came from the upsurge of enterprises expenses which lowered competitiveness of enterprises as most of the capital resource would constitute the main part of the payment system. Also, there were rise in the labour cost of enterprises, especially in those labour-intensive ones, and thus employers may force to lay off workers or cut wages in order to keep the company alive. However, in the long term, the expansion in social insurance coverage would establish a more standardized and stable employment environment, which is important in maintaining employers trust in their enterprises and reinforcing their sense of responsibility and cohesion. CHAPTER 4: IMPACTS ON EMPLOYEE For the impact of employee, In order to safeguard the legitimate rights and interests of employees and building a harmonious society , the government not only vigorously promotes the social security work and expanding the coverage of the five insurance in China. This policy is large extend to gain the recognition and support by the all sectors of the community . Some socially responsible company also believes that the implementation of this policy will be benefit to employees for future and so many companies  actively to purchase of five insurance for their employees . The implementation of social insurance for employees with long-term benefits , such as when an employee reaches retirement age , he or she can receive monthly pension until his death ; under the social security . If women employees pay maternity insurance can obtain limits reimbursement of expenses including prenatal examination and surgical expenses . Beside, under the employment, employees can earn 2 to 3 monthly compensation through unemployment insurance, it can effectively to solve and protection of employees living expenses during periods of unemployment . Employee also can extract the housing provident funds for housing related expenditure purposes . However, due to some local government in the development the standard payment of five insurance that requires enterprise according to the average wage to pay, rather than the actual amount of wage subject to each industry. Since the majority of employees wages is less than the average wage , if the government accordance with average wage as a payment standard, the result is employer would deduct a large sum of money in the employees their wage, eventually employees wage they earn is less. In addition, due to the policy and standard of purchases social insurance is diversity by different province in china, when foreign employees return to home town from local, Employees need require the Ministry of Labor to end of the social security relationship before they can get back the balance on the personal account. Thus, it would lead to employees on future retirement not be protected ; On the other hand , the company pay for employees social security fees cannot bring the benefit to employees ,the result that would reduce the enthusiasm of enterprises to participate in social insurance An ol d-age insurance can be interrupt ed. If the employees pay more, he will get more pensions. However, the q uality of life cannot be guaranteed after retirement . Many employees think that social security has been considered  and it is so comprehensive . Therefore they are no need to have other financial In fact, the pension formula is quite complex, but generally can be calculated as follows: 20% of the average wages of individual accounts a total of 120. Obviously, the social security pensions cannot guarantee the quality of life after retirement. Therefore, the HR of the company can choose to commercial insurance for pension supplement and provide it to the employees. For example, it can include the health protection and accident protection. Also, if the pension plan of the commercial insurance is expired, the employees will get some money as a pension supplement. Those insurance are suitable for young people such as some recently married, capital investment is not enough. Therefore, it will help to attract and retain the people to join the company. Moreover, the Health insurance is more important because i f it is interrupted for more than three months, it will lose effectiveness . There are many requirement of using the health insurance such as many restrictions about use in other p rovince . It is difficult to move and use in other province. Finally, not all medical practices have access to insurance, such as: plastic surgery, increased myopia correction and other medical expenses. Therefore the HR can design to buy some inpatient medical allowance to the employees . Those politics can help to provide the security, attract, retain and motivate to the employees.

McDonalds Future Policies and Strategies

McDonalds Future Policies and Strategies Introduction In this assignment we will discuss the business, its environment, factors affecting the environment, current market conditions and the affect of the current market on the the business. Identify the stakeholders of the company, strategy, policies used by the business that helps them to gain competitive edge over its customers. Strategic Review Strategic review helps to analyse and review the strategies used by the business for survival and sustainability. It helps us to understand the decisions taken by the management to increase the sales, market share and hence maximising profit. The Company I have chosen for this assignment is McDonalds which market leader in fast food industry is. In this assignment we will discuss McDonalds stakeholder and their current market position of McDonalds. We will also discuss the environment, strengths and the weaknesses along with the strategies used by McDonalds which affected the position of McDonalds either to increase market share or maximising profit. Task 1.1 Identify the importance of environmental factors affecting the organization or sector. We will discuss the factors affecting McDonalds. I have chosen Mcdonalds as a company having worked for McDonalds for about Four years make me understand the culture, structure and the environmental factors that affect the organisation directly and indirectly.Mcdonlads follow the plan to Win and being the Market Leader in the fast food industry with having restaurant in more than 119 countries with more than 31,000 restaurants in operation. The factors that affect the organisation are the political, social, economic, technological and legal .Apart from those Factors like Globalisation, Diversity and Ethics affect the organisation. Globalisation: Globalisation helps in developing a closer contact between different parts of the world, and have increased the possibility of personal exchange, mutual understanding and friendship among world citizens. Corporations are expanding their businesses to world market. Corporations go global for the Survival and sustainabilty.Mcdonalds are operating in more than 119 countries with over 31,000 restaurants in operation. Diversity : McDonalds s follow diversity by employing local people and having local suppliers for the restaurants. It also have the different menu for different countries and follow the culture of the countries. Like not serving beef products in India and having different Entries for ladies in Arab Countries respecting the cultural and religious beliefs of people. Global marketing decisions are no different than those made domestically but the decisions are unique to each country (Sister Sister, 2005). McDonalds realises diversity as an asset that enhances in the profitability of organisation. Diversity directly reflects the interpersonal relationships. Ethics: McDonalds Promote the RMHC(Ronald McDonald House Charity ) which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonalds sponsor Olympic athletes. Ronald McDonalds Houses are located in more than 259 communities worldwide and support Mobile care programs which offer cost effective medical,dental and educational services to children.In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. Mcdonalds also help the African farmers by buying fairtrade coffee beans and also the Rainforest Alliances. Task 1.2 Analyze the needs and expectations of all stakeholders involved. McDonalds is a people business-Ray Kroc Person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organizations actions, objectives, and policies. (Businessdictionary, 2010) Customers: McDonalds provide its customer with the nutritional value of the food and tend to innovate new food for its customers and have loyalty options of drink to retain its customers .It also provide healthy food options like salads, water,delli roll and fruits . Franchise holders (franchisees) Franchisees are crucial to McDonalds success; they deliver its brand promise straight to the customer. Nationwide, approximately 85percent of their restaurants are franchised. The sites for the restaurants and either own or leases the land and buildings. The franchisee then, in turn, leases the building from McDonalds by paying a percentage of sales. The franchisee also purchases the cooking equipment, furniture, play land and signage to complete the fit out of the restaurant. Shared investment and shared risk helps to achieve sustainable growth. Employees: Employees are the internal stakeholders and directly affect the working of organisation. McDonalds provide national qualification to its employees and helps to gain work experience. Mcdonalds follow equal opportunities for its employees. Suppliers: McDonalds supply chain benefits the countries economy. As Mcdonalds lay emphasize on the local suppliers. But the suppliers have to maintain the promise of quality for the customer, the ation, including rigorous quality control in all areas of operations-including animal welfare, health and safety, handling procedures and cleanliness. By providing local supplies Mcdonalds generate employment in the countries and supporting economies of thes to be company. This also enhances the growth perspectives of the countries as New Zealand exports beef to United States for beef patties. Community groups: RMHC(Ronald McDonald House Charity ) which provide room and board, food and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonalds sponsor Olympic athletes. Ronald McDonald Houses are located in more than 259 communities worldwide and support Mobile care programs which offer cost effective medical, dental and educational services to children. In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. Mcdonalds also help the African farmers by buying fair-trade coffee beans and also the rainforest alliances. It also is promoting the national Olympics in 2012 . Shareholders: According to the Annual report 2010 Mcdonalds have increased it growth 3.8% and the earning per share of the shareholders have increased by 9% and also the total dividend distributed to shareholders between 2007 -2009 amounted to 16.6 million dollars. Task 1.3 Conclude the major changes taking place in the environment that will affect the strategy. Economy is going through the downturn .It is very tough for companies to survive and sustain in the market. Every organisation follow the internal and external environment to plan any strategy .Profit Maximisation is the main aim of the organisation apart from organisations do plan for the environmental and the social factors that help in achieving the objectives and goals of the organisation. PESTLE Analysis: Political factors: Company is controlled by the policies and regulation of operations .Specific market focus on different areas of concern such as health, worker protection, and environment .McDonalds while operating in India will follow the rules and regulations of India relating to the tax, trade laws and the rights. For example selling of the meat is said to be offensive relating to Hindu community particularly that of beef. Economic factors:- Economic factors are those factors where in the economy of the business is affected it has a major impact on the business these factors such as interest rate , exchange rates could have a devastating effect on the business special when it a multinational business. McDonalds will have to charge customer in the local currency than the standard currency and the price should be within the purchasing power of individual. Social Factors: Social factors are factors originated generally due to the internal stakeholders in the organization, their health and safety. The culture in the organization can have varied effects on the output of the business and the cost of the company is lot more affected due social factors. Technological factors: McDonalds use television advert for the for the marketing purpose. Celebrities and animated depictions are used as an endorsement for I m loving it campaign. McDonalds use inventory system and the management of the value chain allow the easy payment foe their suppliers and other vendor which an individual stores in respective markets deal with. Legal Factors: McDonalds is proving nutritional information of the food on the packaging and the website of McDonalds. McDonalds is using fruits, oatmeal, salad, water and orange juice to promote healthy food habits and fight the obesity. In the Muslim countries McDonalds is using the concept of Halal Food for the target Customers. Other legal concepts like tax obligations, employment standards, and quality requirements are only a few of important elements on which the company has to take into consideration. Otherwise, smooth operations shall be hard to achieve. Environment: McDonalds is using the bin it logo to promote clean society so that the rubbish packaging should not be dumped by the roadside. It is also promoting going green to save energy and reducing wastage to save the environment and showing their responsibilities towards society. Through careful planning and working with The carbon rust we ensure that we use the most efficient equipment for our restaurants according to the technology available(Katie Saunders ,Environmental Manager, McDonalds UK) Mcdonalds is also using contributing in the environmental impact by reducing the energy consumption in restaurants, miniming the use of water in restaurants like using waterless urinals in the restaurants. Mcdonalds is trying to save the environment by reducing waste and reducing the size of the trayliners by 10cm which results in 84 tonnes of paper saving. It is also recycling the used cooking oil for the bio diesel. (McDonalds, 2010) Balance Scorecard Approach: The Balance Scorecard method was given by Kaplan and Norton .It is a strategic approach and the performance management system that enables organisations to translate companys vision and strategy into implementation and take into consideration four perspectives: Financial Perspectives: From the Financial Perspectives Mcdonalds like to focus on the Profitability and sales. For Increasing the sales employees are trained to sell large meals. For the Profitability emphases is laid on the waste reduction and drive thru which is having trained staff to do the job properly. Hand held are used to less the queues on the drive thru as it lessen customer order processing times. Customer Perspectives: Mcdonalds relate to Quality ,Service and value to customers. It target to serve front counter customer in 90 secs and the drive thru customers in 180 sec.Speed and quality is of utmost important to customers. Therefore, customers, like to friendly,fast and quality service every time.New Product like snack wrap, tasty and Great Taste of America is been brought to menu after sometime to retain the customers. Business Process Perspective: From the Business processes Mcdonalds is getting to expand its business by getting global. Also Mcdonalds is adding new product line to its business by opening McCaffes to expand its business. Learning and Growth Perspective: Employee Commitment is very important in the fast food industry. Employee turnover affect the business as retaining the employees is cost effective as recruiting and training is costly. McDonalds provide qualification to its managers from the hamburger university.(maxipedia,2010) Value chain Analysis: Firm Infrastructure: Brand Recognition: Mcdonalds is globally recognised brand. No.1 in Retail food industry. McDonalds is the market leader and exists at number no. 1 in fast food industry. Franchising: About 85% of the restaurants are franchised. Company Image: Company hold a strong image in the community because of the fresh and universal taste. Financial strength: Inspite of the economic downturn Mcdonalds annual sales increased by 3.8 % in 2009. Human Resources: Job Applications: Mcdonalds follow the online application system for recruitment. 2nd largest U.S employer Technology: Just in time order Delivery: Mcdonalds use the refrigerated trucks for delivery as the temperature of the frozen meat patties should not be less than -18 to -22 degrees to be served when cooking. Procurement: Sustainable packaging: Mcdonalds have reduced the size of tray liner and also use the packaging that can be recycled in their concern to protect environment. Renewable resources: 82% of the packing material is from renewable resources. Oil recycling for the bio diesel. Quality Control: For delivery freight truck inspections are inspected and random audits take place for quality control. Inbound Logistics: Operations: Corp. Guidelines for franchisees. Outbound Logistics: Distributor agreement Marketing and Sales: Product: Health and wellness campaign and product offering Price: Providing value to customer e.g. Pound menu, party pack for kids. Promotion: Coca cola endorsement Sponsor of Olympics and feeding the athletes .Mcdonalds is sponsoring Olympics 2012 along with coca cola and Cadbury. Service : Friendly customer service. Clean Environment for customers. Fast food service target to serve front counter customer in 90 sec and drive thru customer in 180 seconds. { Adopted from Harbott.com,2010} Task 2.2 Summarize the position of the organization in its current market. According to The Times In spite of the economy downturn McDonalds is still pushing ahead with the discounting menu. Figures shown by The Times state that McDonald position in the current market is unaffected by the economy downturn .It is following the strategy of the discounting  £or $ 1 menu making it to increase its profit. It has reported the increased sale as 4.2% of the global rise McDonalds share rose from.38 % in early trading of 1950 to  £70.61 in 2010.Mcdonalds is following a low prices strategies on fries,burgers.drinks and the sale of McCafe drinks.(Frean,2010) Mcdonalds is holding strong position in market as it holds more than 32,000 restaurant in operation in more than 117 countries and it has also added to the new product line McCaffes in 2008 providing cappuccinos and frappacinos. And other drinks. Working towards the environments and Children welfare and the organic food and also feeding the Olympics allows them to fulfil their responibilty towards society. Mcdonalds have planned to open around 1,000 more store in 2010 and invest in $2.4 billion to enhance the brand. Mcdonalds have planned to Reimage the exterior and interior of the existing stores to improve seating, lighting and dà ©cor and by doubling drive thru stations to improve speed and convenience.(Yousuf,2009) Task 2.3 Evaluate the competitive strengths and weaknesses of the organizations current strategies. Strengths Weaknesses Opportunity Threats 1) Glo Globalization: 32,000 restaurants serving in more than 117 countr117 countries. 1) Advertisement techniques that target children 1) Innovation: Continued adaptation such as adding on new menu such as snack wrap and great taste of Amaerica to retain the existing customers. 1) Current world economic standing: the companys revenue streams are diversified, but depending on the the length of this recession, they will inevitably be negatively impacted by the trickle down effect. 2) Active Childrens Charity: The Ronald McDonald House helping families with children in hospital. 2) Consumers use disposable income to purchase fast food meals so when the budget it treatened, consumers redirect these funds 2) Conservation: Researching green energies and green packaging solutions Recycling of the waste oil to form Biodiesel.. Using Water less urinals in store to save water consumption. 2) More Casual Dining Restaurants increasing their burger offering and decreasing the price. 3) Adjusted Ingredients and product offerings to comply with upgraded health standards deemed necessary by the USDA:Mcdonalds provide the universal taste in its menu. 3) Public perception: McDonalds has been impacted by negative press like the documentary Supersize Me by Morgan Spurlock in which he contributed our societies obesity to McDonalds and other fast food chains. 3) Exploration: Create new product offerings. Continue to use technology to influence revenue strategy: possibly use text messages to deliver specials offers to individuals who sign up for such services. 3) Public Health Crisis.: people are more foccussed on the dietry needs. 4) Earns revenue not merely by fast food sales, but also as a property investor, a franchiser of restaurants.: More than 85% of the restaurants are franchised throughout the world. Mcdonalds using low price strategy Or the  £1 menu which led t increase in sales by 4.2 % globally in 2010. Task 3.1 Use a range of tools and models to develop strategic options. Turnaround Strategy: Turn around Strategy is used by underperforming companies to normal in terms of acceptance levels of profitability, solvency, liquidity and cash flow. Therefore turnaround strategy is used to manage, stabilise, fund and fix the underperforming and distressed companies. The components of the Turnaround strategies are: Managing the turnaround: Managing in terms of leadership, stakeholder management. Stabilising by ensuring the short term future of the business through cash management. Funding and Recaptilising the company. Fixing the company in strategic, operational and organisational term. Mcdonalds adopted the turnaround strategy in 2003 when the sales declined, ,Measures for the service and quality of the chain continued to fall behind its rivals.To fight back the Company started to follow a turnaround from the corporate level by bringing back the James R Cantalupo former vice president under who the company bloomed from 1990 to 2000 and gained 32,000 franchisees. With the coming back of Cantalupo he started the redesigning by emphasizing more on the quality , friendliness and speedy service of staff and laid emphasis on the increased sales and expanding the more on business. The Mexican Grill and The Boston which was acquired by the Mcdonalds were let out .McDonalds set out new Product line to its Menu By opening McCaffes around the world as expansion in 2003. Breakfast new menu was added as pancakes with the combination of bacon, sausage and egg which was a great success along with the breakfast coffee drinks. It also added healthy food as salads, drinks. Company also added new logo I m loving it in the TV Adverts using Justin Timberlake to target teenagers instead of the kids to endorse Mcdonalds which turnaround a great success for the company and company started to increase its sales following the strategy.(scribd,2010) The changes in the external environment of the business can also be determined by the Porter five force model which exactly shows the real picture of the competition in the market. The model of the Five Competitive Forces was developed by Michael E. Porter in his book à ¢Ã¢â€š ¬Ã… ¾Competitive Strategy: Techniques for Analyzing Industries and Competitors in 1980. Since that time it has become an important tool for analyzing an organizations industry structure in strategic processes. Porters model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on and understanding of industry structures and the way they change. Competition: Since the time Mcdonalds started in 1940 it is providing excellence service to its customer. Market is tough and tight for fast food industry. Opening up of cafe to the product line and serving breakfast has provided tight competition with Starbuck and other breakfast serving restaurant. Burger king and KFC are the two great competitors for Mcdonalds. Ease of entry: it is hard for new entrants to enter the market because of the high cost of entry and research and development cost. Established brand names like Mcdonalds make it even harder and new entrants have to face price competition. Substitutes: there are many products available in the market for substites.People can go to Burger King And KFC and Starbucks looking for substitutes. Power of suppliers: products are not readily available from suppliers so the power of suppliers is relatively low. Power of Buyers :Power of buyer is low. {Adopted from: marketing teacher,2010} Task 3.2 Develop a comparative understanding of activity from organizations in the market. Mcdonalds is the market leader in the fast food industry .Fast food business fluctuates with the economy rise and doom, customer taste, cultural differences, climatic conditions and the buying behaviour of customers. Mcdonalds is a customer oriented business focuses on the service, quality, processes and the accuracy of the service delivered to customer. McDonalds tends to provide universal taste of food to customers despite of their regional differences. It promotes diversity among its employees and believes in equal opportunities to its employees. Regular Training and development of the staff at the operational and management level gives it a stand out position in the market. Innovation and the TV Endorsement and its target market and motto I m Loving it makes it a standalone brand among the customers. To retain Customers Mcdonalds is regularly adding new menu its list and to adapt to cultural differences it follows the culture of the country Like having separate entrances for la dies in the Muslim Countries., to respect religious beliefs of the people it is adapting religious beliefs of the community as serving Halal food in the Arab Countries and Not serving Beef in India. To reduce Carbon Emission promoting Recycling, to save water use recycled water in toilets, to save trees reduce the packaging paper and tray liners and also recycle paper for packaging. For survival and sustainability it follows the local wage rate, local suppliers, local legal and taxation system, and local ethics. Task 3.3. Create a range of feasible options as the basis of future organizational strategy. Mcdonalds strategy is about the fresh and quality food to customer with friendly service. Mcdonalds plan to win and target customer with the universal taste respecting the religious and cultural beliefs. With the environmental issues Mcdonalds is helping to promote cleaner streets by sponsoring bins in conjunction with the council and also initiating people to get the Rubbish in Bin By Using Bin it motto. McDonalds is also getting in recycling revolution by using the waste oil to get bio diesel .In its motive to Save energy and water it is getting waterless urinals in the washrooms to save water and are trying to use the recycled water. For the packaging of the food it is using more than 82% of the recyclable material and trying to cut the 10 cm of the trayliners used to serve customer which eventually is saving about 84 tonnes of paper every year. McDonalds is also working for the animal welfare so that that animals are given the free field to roam around and is using free range eg g for its breakfast menu. ,it is also using the organic food to promote healthy food and also using fair trade coffee beans to help the farmers of Africa.Last but not the least Mcdonalds is sponsoring the london 2010 along with the coca cola and cadb ury. Mcdonalds will still follow the strategy of plan to win and keep on improving its quality, service , speed and accuracy .along with the training and development of employees . Conclusion :In the above assignment discussion has been made over Mcdonalds and its policies and strategies over the future which will them to sustain in the future. Though it is a market leader but by showing its concern over the carbon emissions and the work ethics it is showing the great deal of responsibility towards to society . The moral duty is fulfilled by employing diversity and proper training and development. It believes in the equal oppurtunities to everybody And require great commitment from its people to maintain the standards of service ,quality and friendliness so that people can say I m loving it!!!!!!!!!

Market Analysis and International Investment

Market Analysis and International Investment 1-(A) From various editions of the Economist, collect time series data of Big Mac prices for 3 countries and assess whether Purchasing Power Parity (PPP) holds. Discuss whether the (Big Mac Index) is a good Price index to be used in this analysis. Answer: The economist’s Big Mac index shown in table 1 has been used since 1986 as an indicator aimed to assess how PPP (Purchasing Power Parity) stands against most traded currencies such us the US dollar. Before entering into further analyses, it is worth providing some relevant information on the PPP theory and assess whether the Big Mac index implicitly delivers points of comparison that subsequently reflect exchange rate parity conditions across 120 nations where this worldwide known burger is largely sold.[1] Purchasing power parity theory by Rudiger Dornbush (Salamanca School) attempts to explain that two currencies adjust in compensation owing to the difference between the rates at which the two countries under watch are inflating. In relation to this, the underlying principle of the PPP theory lies in the law of a single price. This law can be simply explained based on the commodities trade whereby companies around the world tend to purchase goods from countries where these are more competitive in terms of price.[2] Following this first hypothesis, there is a determination mechanism starting when goods are purchased abroad and at the same time the demand for foreign currency results in increasing the value of the currency and putting extra pressure on the price of the good itself. Based on this scenario, the PPP entails that two currencies should stand at a level where buying the same goods in the two countries is equivalent. Furthermore, the theory projects that real effective exchange rate will remain constant through time. Based on further research, this work lays out some elements that intervene as potential culprits for not letting the PPP system operates over a short and medium-term horizon. As a relevant consideration to the findings and major setback to the PPP theory, the foreign exchange market framework has changed considerably over the last years moving exchange rates from fixed to floating. In the same context, capital movements and internal policies now explain differentials in exchange rates rather than a simplistic scenario of supply and demand of goods.[3] For instance, in 1973 the oil embargo led unexpectedly the United States, Japan and Italy to depreciating their currencies as a result of currency pressure. According to Buiter and Miller (1992), the exchange rate accommodation mechanism has a much broader significance than the one explained by PPP’s scope; the exchange rate is a measurement of competitiveness as a progressive or â€Å"non-casual† variable. Therefore, exchange rate is a price that reflects an efficient international financial market as opposed to a predetermined state controlled through market forces exclusively. Supporting the previous introduction and with regard to the Big Mac index headway between two years in a row, PPP does not always hold. Moreover, due to the composition of the product, Big Mac does not reflect a truthful price index to determine whether an exchange rate is undervalued or overvalued. According to the economist magazine, Big Macs are not cross-border trading goods as approximately 55% to 60% of the product costing is represented by non-traded goods such us labour, rent and services. Therefore, a price index with no dependence on international trading cannot fully reflect exchange rate comparisons; every country has a unique competitive position mainly produced by internal structures and factors such us labour market, productivity and purchasing capacity. Purchasing power parity theory brings cear shortcomings and most of them can be determined superficially by the Big Mac index and its trend. The most commonly mentioned problems behind the use of PPP: Trade Barriers Changes in patterns of demand and output Similar purchasing patterns and taste in products Varying price indices Taxation Long-term vs. short-term outlook Table 1 shows full coverage for the Big Mac index over a large group of countries. As a complementary part of the analysis this work has chosen two currencies to compare against the US dollar and determine the PPP trend between 2004 and 2005. In 2004 the Big Mac price in the US was US$ 2.90 compared to US$1.26 in China and US$ 5.18 in Norway. In 2005 the corresponding prices represented an increment of the US price by 5.5% to US$ 3.06, 0.7% in China and 16.9% in Norway reaching prices of US$1.27 and US$6.06 respectively. Following the PPP theory, it indicates that exchange rates move to rectify changes in inflation rates. In 2004 China’s currency was 57% undervalued and Norway 79% overvalued; the model expects that an inflationary process in the US of 5.5% would have generated a rectifying movement to close gaps. On the contrary, while the Big Mac price index in the US rose by 5.5%, China’s currency dropped further from 57% undervalued to 59% and Norway continued the other direction and got appreciated dramatically from 79% to 98%. If Big Macs could be exported, no buyers would be looking at Norway since its real international competitiveness is far below. However, in terms of purchasing capacity the Norwegians are potentially capable of purchasing Big Macs as their income per head is considerably higher than in US and China. (B)Choose any two countries and collect (approximately) one year of daily data of a forward exchange rate, the spot exchange rate and the two corresponding interest rates. Can you make any arbitrage profits? Carefully discuss. Answer: To open the discussion about the exchange rate market and its relationship with interest rates, the answer introduces the concept of Eurocurrency market. This is a marketplace where participants make money through borrowing and depositing currencies at a price dictated by interest rates. In this regard, the transactions period varies as short as overnight and in some cases as long as five years. For this exercise the answer considers one participant and two currencies, US Dollar and GBP based on data from 2005 central bank statistics. On January 31st 2005, this person borrowed US$ 18’833.000 in the US and made the decision to arbitrage in GPB pounds. Diagram 1.0 illustrates the foreign exchange arbitrage based on the use of financial instruments to generate profits. Diagram 1.0 Source: Author calculations Borrowed at US$ 18’833.000 at 4.83% and one repayment at the end of the first year (365 day repayment of US$ 19’743.633) Evaluate potential arbitrage: Sell US$ 18’833.000 to buy sterling pounds at GBP/USD 1.8833 and obtained  £10’000.000 Made deposit of  £10’000.000 at 6.20% for 12 months and agreed to received  £10’482.999 Same take a forward contract to buy US$ 19’742.633 1year forward at sustaining GBP/USD at 1.8526 and sell:  £10’657.256; losses: ( £36.716) The arbitrage would produce losses as USD appreciates against the US dollar on a 12-month period; you cannot make profits. 2-(A) Discuss the importance of the exchange rate as an economic variable for international investment decisions or for importers and exporters. Answer: Exchange rates are a key factor that concerning their mechanisms of adjustments and vulnerability originates differential positions and volatility risk within an economic outlook. In relation to this effect, Buiter and Miller’s approach (1992) explains that monetary policies combining prices stabilisation, capital freedom and rational expectations in the foreign exchange market produce a â€Å"transitional† effect on the level of international competitiveness and leave industry sectors exposed.[4] For financial assets and exchange rates levels, international trade activities have rapidly evolved into a more developed and complex sector that operates freely within a global economic system and lead economies to frequently reaching higher levels of surpluses or deficits. On a daily basis scenario, portfolio strategist search for competitive positions worldwide that match investment targets. Concerning the structure of the investment, foreign exchange forecasts are a driving force at the stage of resources allocation and use of financial instruments (Derivatives). But how the exchange rates intervene as a decisive economic variable and in which sectors they deliver benefits or vice-versa? Milton Friedman gives his opinion to this question, starting by responding on the effects over exchange rates through monetary policies; he says â€Å"†¦..monetary policy actions affect asset portfolios in first instance, spending decisions in the second, which translate into effects on output and then on prices. The changes in exchange rates are in turn mostly a response to these effects of home policy (on output and prices?) and of similar policy abroad†¦..†[5]. If one assumed Friedman’s comments, domestic policies move exchange rates affecting decisions in a certain order. With regards to international trade, one of the most compelling examples on how exchange rates affect the performance of particular sectors compared to others is the case of the British economy. On one hand an overvalued pound has jeopardised to some extent the lack of competitiveness of the industrial production and exports in the UK by soaring internal prices and changing the productive structure of the country. Conversely, on the other hand the levels of interest rates together with a strong currency have triggered capital inflows, which are being allocated on different asset classes and also in the continuous boost of service sectors (i.e. Financial Services). To understand the mechanism linking imports and exports with exchange rates, Maurice Levi (1990) explains that on a supply and demand setting the supply curve of a currency illustrates the quantity of that currency supplied and the price of the currency, given by the exchange rate, the supply curve of a currency is calculated as a result of a country’s demand for imports. This event occurs when buyers pay for imports that are sold in foreign currency, then the country’s recipients of the goods must sell their domestic currency for the requested foreign exchange and when imports are invoiced in local currency the foreign beneficiary of the currency sells it. In any case imports result in the country’s currency being supplied. The amount of the currency supplied is equal to the value of imports.[6] On the contrary, the demand curve for a currency shows the value of the currency that is demanded at each likely exchange rate. The need to buy a country’s currency takes off from the need to pay for the country’s exports; the currency’s demand curved is derived from the country’s export supply curve, which shows the volume of exports at each price of exports[7]. To summarise the answer, exchange rates send strong signals to both, portfolio investors and international traders; however the degree of the effect varies depending on the competitive position of the economy. In terms of traded goods, exchange rates place the level of international competitiveness of goods compared to the same goods in other country. On investment allocations such us bonds and equities, an exchange rates outlook is essential to sustain or withdraw positions. In relation to investments, exchange rate risk is generated by uncertainty in the future exchange rates at which the asset or liability will be converted into dollars. Thus, bonds, foreign stocks, real estates and accounts receivable and payable may be subject to exchange rate risk if their value in home currency is beaten by exchange rates. Concerning imports and exports of services such us tourism, banking services, consulting, engineering amongst others react to exchange rates variations in the same way as imports and exports of goods. (B) Collect data for 3 countries of your choice and assess the importance of the exchange rate for international equity investors. Use different investment horizons. Equity investors react to market sentiments, set out overall investment positions and individual strategies underpinned by economic forecasts. Decisions are based upon a group variables and future scenarios; for instance it is widely recognised the existing inverse relation between interest rates and equities. When interest rates are moved up by major central banks such us the Federal Reserve, European Central Bank (ECB), Bank of England and Bank of Japan, shares lose momentum and in most of the cases fall. In terms of foreign exchange conditions, investors go long on equities when they feel comfortable with correct valuation of the currency and if the economy’s balance of payments works in line with the external position of the country. In other words, the exchange rate is determined by the aggregated equilibrium between currency demand and supply. If any country is not in the position to sustain its competitiveness on its currency it sends strong signal for investment decisions. The following three countries US, UK and China have been selected to understand how bursaries respond or relate to changes in exchange rate: US Dow Jones (1-Y Horizon) US is a highly liquid market, Chart 1.0 shows market transactions above 2 billion US dollars a day sustaining levels over 1 year horizon. The Dow index moved up from 10500 (approx) in June 2005 growing by 3.8% (approx) to June 9th 2006. In chart 2.0 Euro gains grounds on the US dollar by almost 5% over the same period as shown on the Dow Jones outlook above. Thus, Euro appreciated by 5% against US dollar and Dow Jones with a slight growth without losing transaction levels. Hence, no particular direct correlation is found on the two variables (Exchange rate and Stock Index). However, it is relevant to clarify that more components such us interest rates expectations, unemployment levels in the US and Euro land, mortgage activities, retail index and companies profitability have an effect on these trends. UK FTSE (2-Year Horizon) In a 2-year Horizon, FTSE shows strong momentum soaring by 22% (approximately from 4500 to 5500); uptrend with a relevant drop in June 2006 due to oil prices and decision on interest rates accommodation by the FED and ECB. This analysis in terms of the pound outlook shows two scenarios for the currency. In 2004 starts at GBP/USD1.82 falling to its 18-month lowest level to 1.72 (5.8%), then it picks up again and in less than 5 months rebounds to 1.85. Again the analysis does not find a direct relationship between a positive steady FTSE trend and sterling variations. CHINA Shanghai Composite 6-Month Horizon The third example involves Chinese Yuan and US Dollar, which have experienced international trade growth five times faster than in 1990s decade. On one hand, Chinese moved from being the 9th most important destination for US Exports to being currently the 4th delivering an impressive uptrend in 2005 above 20% increase (United States Trade Representatives, 2006). On the other hand, the effect of Chinese exports has been stronger, in 2004 china’s trade surplus with the US increased by 24.5% to 202 billion US dollars, the largest between two economies according to the Economic Policy Institute in 2006. Over the last 6 months, the Chinese Yuan has not followed a revaluation against the US Dollar; as it would have been expected due the international trade context explained before (only 2% appreciation). In relation to the Shanghai composite index, it has experienced spectacular growth outperforming other stock markets (44% increases in the same period). Based on these figures, the analysis indicates, exchange rate is not the driving factor to buy stock in China; investors continue forecasting strong growth in Chinese listed companies due to strong internal market performance, domestic consumption as well as industry development. 3- Today is the 16th of December 1998.You are a small importer/exporter having to pay  £5,000,000 on the 26th of February 1999.You are concerned about exchange rate risk and you are considering using currency futures to hedge your currency risk. What would be your hedged and unhedged outcome with hindsight? Carefully explain what will happen over this hedging period with your margin account. One Pound Sterling futures contract is  £62,500 and the initial and maintenance margins are $2,295 and $1,700 respectively. Answer: (Using spreadsheet â€Å"Market†) and concepts from Brian Kettell (Financial Economics p321-330) In futures the principle is to sell what is overpriced and buy what is underpriced. In this example if the GBP/USD is overpriced (futures) less US dollars per Sterling pounds you should sell the futures contract on February 26th 1999 (Long Position in the Spot Market), which means purchase GDP/USD at the Spot Rate Spot Price Futures GBP/USD 1.6750-08 1.6060-1.5998 (at a Premium) The advice for the US importer is to protect the US value by hedging 80 contracts of Sterling Pounds using futures contracts. However, in this case the US dollar as of February 26th when the payment will be made, the futures price shows a US dollar at a premium, which means, the dollar will appreciate. Action: Unit of Trading  £ Pounds Go long in the future market selling your futures contract (right to deliver at 1.6060) and holding on at the the Spot Market. Currency Hedge US dollar against British Pound:  £5.000.000 at a spot rate February 26th 1999: Action buy future Contracts:  £62.500 Number of contracts: 80 Value locked on December 16th 1998:  £62.500 x 1.6750= US$ 104.687 Value of each futures contract on February 26th 1999: £62500 x 1.6060 = US$ 100.375 Net Profit of each contract: US$4. 312 x 80 = US$ 344.960 (Hedging profits) At the end of the period, without hedging you would have benefited as US dollar got appreciated. However, with hedging you will obtain profit margins of US$ 4312 in each contract improving your initial margins. Bibliography Bank of England Statistics available at: http://www.bankofengland.co.uk/statistics/index.htm Economic Policy Institute available at: http://www.epinet.org/content.cfm/webfeatures_econindicators_tradepict20060210 The Economist Big Mac Index available at: http://www.economist.com/markets/bigmac/displayStory.cfm?story_id=4065603 Federal Reserve Statistics available at: http://www.federalreserve.gov/datadownload/Build.aspx?rel=H15 Kettell, B. (2001) Financial Economics, Making Sense of Market Information: Prentice Hall: London Levi, M (1990). International Finance, the Markets and Financial Management of Multinational Business. McGraw-Hill Series in Finance: United States MacDonald R, Taylor M, (1992). Exchange Rate Economics Volume I â€Å"Monetary Policy and International Competitiveness: The problems of adjustments Willem H. Buiter and Marcus Miller, Published by Edward Elgar: England Walmsley, J. (1996). International Money and Foreign Exchange Markets, An introduction. Published by John Wiley Sons Ltd Baffins Lane Chichester. West Sussex Appendix Appendix I. Daily Data End month average Daily forward weighted interest premium/discount rate, instant Daily average of 4 rate, 12 months, US Spot exchange rate, access deposit, UK Banks base rates Dollar US $ into Sterling Bank branch accounts IUDAMIH XUDLDFY XUDLUSS IUMTHAI 04-Jan-05 4.75 -3.075 1.8833 n/a 05-Jan-05 4.75 -3.005 1.8881 n/a 06-Jan-05 4.75 -2.97 1.8754 n/a 07-Jan-05 4.75 -2.925 1.868 n/a 10-Jan-05 4.75 -2.905 1.8748 n/a 11-Jan-05 4.75 -2.85 1.877 n/a 12-Jan-05 4.75 -2.895 1.8932 n/a 13-Jan-05 4.75 -2.85 1.8806 n/a 14-Jan-05 4.75 -2.755 1.8684 n/a 17-Jan-05 4.75 -2.715 1.8593 n/a 18-Jan-05 4.75 -2.85 1.8669 n/a 19-Jan-05 4.75 -2.895 1.8769 n/a 20-Jan-05 4.75 -2.93 1.8706 n/a 21-Jan-05 4.75 -2.92 1.8693 n/a 24-Jan-05 4.75 -2.94 1.8757 n/a 25-Jan-05 4.75 -2.89 1.8647 n/a 26-Jan-05 4.75 -2.955 1.8815 n/a 27-Jan-05 4.75 -2.945 1.8864 n/a 28-Jan-05 4.75 -2.935 1.8829 n/a 31-Jan-05 4.75 -2.92 1.8859 2.18 01-Feb-05 4.75 -2.9 1.8799 n/a 02-Feb-05 4.75 -2.895 1.8848 n/a 03-Feb-05 4.75 -2.84 1.8794 n/a 04-Feb-05 4.75 -2.885 1.8858 n/a 07-Feb-05 4.75 -2.835 1.8657 n/a 08-Feb-05 4.75 -2.855 1.8561 n/a 09-Feb-05 4.75 -2.965 1.8578 n/a 10-Feb-05 4.75 -2.95 1.8712 n/a 11-Feb-05 4.75 -2.96 1.8654 n/a 14-Feb-05 4.75 -2.945 1.8869 n/a 15-Feb-05 4.75 -2.935 1.8872 n/a 16-Feb-05 4.75 -2.83 1.8786 n/a 17-Feb-05 4.75 -2.81 1.8906 n/a 18-Feb-05 4.75 -2.79 1.8944 n/a 21-Feb-05 4.75 -2.8 1.897 n/a 22-Feb-05 4.75 -2.9 1.9057 n/a 23-Feb-05 4.75 -2.985 1.906 n/a 24-Feb-05 4.75 -2.955 1.9077 n/a 25-Feb-05 4.75 -2.89 1.9153 n/a 28-Feb-05 4.75 -2.89 1.9257 2.18 01-Mar-05 4.75 -2.875 1.9198 n/a 02-Mar-05 4.75 -2.94 1.9101 n/a 03-Mar-05 4.75 -2.9 1.9084 n/a 04-Mar-05 4.75 -2.885 1.9258 n/a 07-Mar-05 4.75 -2.87 1.9139 n/a 08-Mar-05 4.75 -2.86 1.9311 n/a 09-Mar-05 4.75 -2.835 1.9212 n/a 10-Mar-05 4.75 -2.77 1.9236 n/a 11-Mar-05 4.75 -2.72 1.927 n/a 14-Mar-05 4.75 -2.64 1.9119 n/a 15-Mar-05 4.75 -2.61 1.9157 n/a 16-Mar-05 4.75 -2.65 1.9284 n/a 17-Mar-05 4.75 -2.595 1.9237 n/a 18-Mar-05 4.75 -2.555 1.9155 n/a 21-Mar-05 4.75 -2.515 1.8962 n/a 22-Mar-05

Vaccination: A Necessary Precaution Essay -- Medicine Vaccines

The issue regarding vaccinations and their accompanying side effects has been a prevalent debate throughout society and medicine for a number of years. Some continue to believe that vaccinations are harmful and actually promote disease, but the truth is that the concept of immunization is one of the most significant advances in scientific history that has led to the prevention of countless diseases and epidemics throughout the world. Still, despite the overall improvement of public health, the usage of vaccinations remains a controversial concern that is constantly challenged. Vaccination critics argue that the serious side effects associated with vaccines have been underreported, underfunded, and rarely researched. This, however, is false. Vaccinations are a necessary part of society because they prevent the spread of major diseases, reduce the severity of illness, boost one’s immune system, and in turn, protect the populous from potential epidemics. The definition of a vaccination, as stated by the Encyclopedia Britannica, is â€Å"a suspension of weakened, killed, or fragmented microorganisms or toxins or of antibodies or lymphocytes that is administered primarily to prevent disease† (Encyclopedia Britannica). Vaccines stimulate the immune system to attack the specific harmful agent and then cause the anti-bodies to remain sensitized in case the agent should ever reappear in one’s system. Obviously, this can be helpful when trying to prevent disease, or any other illness for that matter, since the anti-bodies specific to that type of illness remain present in one’s body lest the illness returns. Since infants are extremely susceptible to infirmity, many are vaccinated as early as the first month of their life. This helps p... ...ubmed/11032190>. Encyclopedia Britannica. "Science & Technology::Vaccine." Encyclopedia Britannica. Encyclopedia Britannica, Web. . Fisher, Barbara Loe. "In the Wake of Vaccines." Mothering.com 126 (2004): n. pag. Web. 30 Nov 2010. . Narins, Brigham. World of Microbiology and Immunology. 1. Farmington Mills, MI: Gale, 2003. Web. . Riedel, Stefan. "Edward Jenner and the History of Smallpox and Vaccination." Baylor University Medical Center Proceedings 18.1 (2005): 21-25. Web. 1 Dec 2010. . Williams, Tony. "God's Will and Dead Viruses." Internet Review of Books Sep. 2010: 304. Web. 30 Nov 2010. .

Masculine Desires Expressed in Art and Media Essay -- Male Masculinity

Suppose the locks to a Starbuck’s Cafà © were slowing turning to seal the doors shut from any last customers. But before the latch could roll into the opposite lock, two strangers pulled open the door and made their way inside. A sight to have seen: James Bond and Keanu Reeves. They held each a large canvas and a sculpture, respectively. Both purchased their favorite coffee drinks at the local cafà ©. Having made an exception in not closing the shop at the normal time, the employee allowed the men to enjoy their beverages inside—in the comfort of the inexplicably soft couches. The gentlemen sat and conversed about their current lives. My question is: does the adolescent worker, who is still bewildered, share a singularity with the unexpected customers, as well as with the artworks in their possession? Regardless of the hypothetical, the answer is always the same: Yes. The fictitious heroes and brave men conceived by man bear the longings and passions of their creator. In fact, it is through them that man lives vicariously. However, prior to the births of legendary characters in motion pictures and comic books, there existed artworks that introduced the public to the deepest desires of man. They portrayed his universal image: a man that is â€Å"wild at heart†. What does the action sequence of The Matrix: Reloaded have in common with a sixteenth-century sculpture? Baccio Bandinelli’s Hercules and Cacus, exemplifies the first of three desires in man. According to the legend, Hercules went on a journey to complete his tenth labor, a task of retrieving the Cattle of Geryon. Cacus, â€Å"a fire-god†¦demoted to a fire-breathing giant†, stole the cattle from the unsuspecting Hercules and hid with them in a cave. The theft launched the enemies into ... ...expresses. The three desires of man are painted and sculpted in the magazines, books, television shows, and movies of today. Society suggests the ideals and universal image of man it wants to uphold; the media engraves the information into the stone tablets of its mind. Sure, I can appreciate the sculpture of Hercules and the painting of Christ, but only because I know that I can personally relate to the artworks. I want a battle to fight, an adventure to live, and a beauty to rescue. Works Cited Eldredge, John. Wild at Heart. Tennessee: Nelson Publishing, 2001 Gladwell, Malcolm. Blink. New York: Little, Brown and Company, 2005 â€Å"Hercules and Cacus† Wikipedia September 25, 2006 Gospel of John BibleGateway September 25, 2006 Masculine Desires Expressed in Art and Media Essay -- Male Masculinity Suppose the locks to a Starbuck’s Cafà © were slowing turning to seal the doors shut from any last customers. But before the latch could roll into the opposite lock, two strangers pulled open the door and made their way inside. A sight to have seen: James Bond and Keanu Reeves. They held each a large canvas and a sculpture, respectively. Both purchased their favorite coffee drinks at the local cafà ©. Having made an exception in not closing the shop at the normal time, the employee allowed the men to enjoy their beverages inside—in the comfort of the inexplicably soft couches. The gentlemen sat and conversed about their current lives. My question is: does the adolescent worker, who is still bewildered, share a singularity with the unexpected customers, as well as with the artworks in their possession? Regardless of the hypothetical, the answer is always the same: Yes. The fictitious heroes and brave men conceived by man bear the longings and passions of their creator. In fact, it is through them that man lives vicariously. However, prior to the births of legendary characters in motion pictures and comic books, there existed artworks that introduced the public to the deepest desires of man. They portrayed his universal image: a man that is â€Å"wild at heart†. What does the action sequence of The Matrix: Reloaded have in common with a sixteenth-century sculpture? Baccio Bandinelli’s Hercules and Cacus, exemplifies the first of three desires in man. According to the legend, Hercules went on a journey to complete his tenth labor, a task of retrieving the Cattle of Geryon. Cacus, â€Å"a fire-god†¦demoted to a fire-breathing giant†, stole the cattle from the unsuspecting Hercules and hid with them in a cave. The theft launched the enemies into ... ...expresses. The three desires of man are painted and sculpted in the magazines, books, television shows, and movies of today. Society suggests the ideals and universal image of man it wants to uphold; the media engraves the information into the stone tablets of its mind. Sure, I can appreciate the sculpture of Hercules and the painting of Christ, but only because I know that I can personally relate to the artworks. I want a battle to fight, an adventure to live, and a beauty to rescue. Works Cited Eldredge, John. Wild at Heart. Tennessee: Nelson Publishing, 2001 Gladwell, Malcolm. Blink. New York: Little, Brown and Company, 2005 â€Å"Hercules and Cacus† Wikipedia September 25, 2006 Gospel of John BibleGateway September 25, 2006

Morality In “Queen Vs. Dudley And Stephens” Essay

1. In the case of Queen vs. Dudley and Stephens, was the killing of the cabin boy, Richard Parker, morally wrong? Relate your answer to one or more of the following ethical theories: Aristotelian ethics, Hobbesian ethics, Utilitarianism, or Kantian ethics. Be sure to give a summary of the main points of the theory, as well as drawing out its implications for the case. In the case of Dudley and Stephens, the murder of Richard Parker cannot be justified as being morally permissible. Our society functions on certain base principles, one of them being that there are some things which are forbidden, that particular actions or measures can never be correct due to their nature. Murder is an action which qualifies as being fundamentally wrong, it can never be said that murder is the right thing to do, because no matter the context, murder is in no way a morally permissible course of action. While it is true that all of the crew members would most certainly have died if Parker had not been slain, that is still not enough reason to have permitted the murder. Even if the boy had been consulted on the matter and he had subsequently granted his consent, the act of murder still cannot be justified. There is no situation so dire (excluding warfare and self-defense) to warrant the voluntary taking of another human being’s life. Although the crew had already gone numerous days without any form of nourishment, murder was still not the proper course of action. The boy was near death, and perhaps if they had waited just another day he would have died naturally, and then they could have used his body. This standpoint of murder never being the right decision is supported by Aristotle’s theory of â€Å"virtue ethics†. His theory states that we should live our lives according to principles of virtue and morality, and this will lead to an attainment of happiness. Aristotle says that not all of our actions should be virtuous, as an extreme amount of anything won’t bring happiness, but rather we should live to a mean between evil and morality. He believes that through our ability to reason and choose our actions we will reach that mean position and balance our lives to a point of happiness. While the theory does allow us to choose some actions which are not moral

Project Report on Tumkur Milk Union

EXECUTIVE SUMMARY: DAIRY INDUSTRY IN INDIA – AN OVERVIEW: Dairy enterprise is an important occupation of farmers. In India nearly 70% of the people depend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry to a large extent. Animal husbandry in India is an essential part of agriculture. It is mainly a rural occupation closely associated with agriculture. In 1965, National Dairy Development Board [NDDB] was set up with the objective of meeting the demand of milk, especially in urban areas, as well as developing the rural economy through the enhancement of the milk production of the country.In 1970, NDDB took up â€Å"Operation Flood† program in order to organize milk producers’ co-operative in several places in India taking the Karia district [ANAND] co-operative milk producers union limited [AMUL] of Anand, Gujarat as a model with the above object in view. Company profile: Origin of Tumkur Milk Union Limited:- TUMUL was formed on 30th march 1977 and its funding is restricted to the Tumkur district only. TUMUL was formed about for the welfare and upliftment of the milk producers and to make the milk producers procurement a profitable business by using advanced technology.It is formed mainly for serving the customers with better quality milk. TUMUL is situated in Mallasandra which is 11kms away from Tumkur City. It is situated in the rural area, which is outside the jurisdiction local authority such as municipal and co-operation. GROWTH AND DEVELOPMENT OF THE ORGANISATION Tumkur is a fast developing industrial town in Karnataka it’s adjacent to Bangalore, about 70kms towards North West of the national highway. The district comprises of 10 taluks with a population of 45 lakhs (2007). The climate is rather dry and the rainfall is normal in the district.The taluk of Pavagada and Sira face significant water shortage throughout the year. The dairy development activities in the district started in December 1976 under the KDDC with the objective of supporting the nearby urban liquid milk market. A farm cooler 60TLPD was started in 1976 Tumkur as a feeder balancing dairy. The co-operative union of the Tumkur milk producers was registered in the year march 1977. A dairy of 1 lakh liters at Tumkur under the OF (Operation Flood) was commissioned and handed over to the union in 1987. DESIGN OF THE STUDY:TITLE OF THE PROJECT : â€Å"Customer satisfaction towards Nandini milk and Awareness, Opinion on Homogenized pure cow milk† STATEMENT OF THE PROBLEM: Any product that wants to survive must concentrate on factors like quality, price, package etc†¦ According to consumer studies have become essential now a days,that to for such perishable food products to know about their preferences towards the various related aspects of the products . So it has becomes essential to know the present level of consumer satisfaction to analyze the future demand for the products.More product awarenes s has become a potential marketing tool in the global market . Even the software industry is also not free from this area. Well designed more products can create promotional value. OBJECTIVES OF THE STUDY: The primary objective is to identify the consumer satisfaction level for Nandini milk and Awareness, opinion on homogenized pure cow milk. An attempt to increase the sales can bear fruit only if the consumers are satisfied with the products and services and they go for the product again or even refer to it to other potential buyers.Thus evaluating the current consumer satisfaction level is quiet necessary for improving sales as well as it provides criteria for future sales plans and to develop the marketing plans of the company. SCOPE OF THE STUDY: The Study is exclusive conducted for the â€Å"Customers Satisfaction towards Nandini milk and awareness, opinion on Homogenized pure cow milk† in and around the Tumkur City only. It will help to know the factors influencing the customer’s preference about the product and getting their opinion for accepting product RESEARCH DESIGN: PRIMARY SOURCE OF DATA:Primary data are those collected by the investigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A well-structured questionnaire was personally administrated to the selected sample to collect the primary data. SECONDARY SOURCE OF DATA: Two types of secondary data were collected for the preparation of the project work: -Internal Data was generated from company’s brochures, manuals and annual reports. -External Data, on the other hand, was generated from magazines, research books and internet (websites).LIMITATIONS OF STUDY: ? The survey is limited to the potential of areas of Tumkur City only due to limitation of time. ? The sample size is confined to 100 due to lack of time and resource. ? The study focused on memory recall and there is chance of recall bias. It may have intr oduced errors in the survey. ? There is reluctance on the part of respondents. FINDINGS OF THE STUDY: ? Nandini milk is purchased by many people because they think that it is a product of Karnataka’s farmers efforts. ? Majority of respondents opt full cream Nandini milk and homogenized pure cow milk to onsume everyday. In Nandini milk there are different types of milk like toned Nandini milk, double toned Nandini milk, special Nandini milk, Good life which are presented to market by TMUKMF to satisfy the different needs of consumers in best possible ways. ? Majority of respondent’s view about Nandini milk’s price is expensive, price was the only major inconvenience about Nandini milk to customers. Few respondents did say that the price is reasonable. ? Majority of respondents have never witnessed any sort of contamination or unhygienic factors in Nandini milk. hich proves that people need not have any doubt or fear while using Nandini milk. ? Majorityof responde nts are aware of Nandini homogenized pure cow milk but still 24% are unaware of the product this shows that company need to concentrate on its promotional activities. SUGGESTIONS AND RECOMMENDATIONS: ? Conduction of Consumer Awareness Program ? Need to maintain constant price for products. ? Adoption of effective advertisement programme. ? Implementation of effective cost controls method. ? Need to improve in packaging of product.CONCLUSION:- Nandini milk as got very good distribution channel and it has agents in every part of the city and the brand image is too good. TMU KMF is providing the best quality products. They have understood the needs of consumer and tried their best to fulfill them. I am sure the company will find my findings relevant and I sincerely hope it uses my suggestions enlisted, which I hope will take them miles ahead of competition. I am sure the company has a very bright future to look forward to and will be a trailblazer in its own right.