Martha Stewart

Martha Stewart a known celebrity and founder of Martha Stewart Living Omnimedia (a business which is built on showing others how to cost effectively manage and decorate the home), who was given a tip by Douglas Fanueil and Mr. Bacanovic, employees of the Merrill Lynch brokerage company. This tip which broke the confidentiality policy of the brokerage company led to the subsequent sale of Martha’s shares in the ImClone company during the latter company’s blackout period with the effects of causing the share price of ImClone’s share to drop and the share price of shares of the Martha Stewart Living Omnimedia to drop after the scandal broke that Martha had engaged in insider trading. Through a series of events, she, her broker and his assistant were subsequently prosecuted and sentenced. In this case study, we will be examining how the public perceived Martha Stewart’s actions and also the penalties that were imposed. We will also look at how her decisions impacted and also provided major setbacks to her business because of her insider trading scandal on the Imclone Systems Incorporated. By carrying out this research, we as a group would determine if the blame should be placed on her or not and also determine if the fines were adequate for the crime committed. 1.Did Martha Stewart commit the crime of insider trading when she sold her ImClone shares on December 27, 2001? We believe that Martha Stewart was guilty of insider trading. The justifications for our point are as follows: a) Martha Stewart was told by Mr. Faneuil (under direction from his boss who was also Ms. Stewart’s stockbroker) that the largest stockholders of ImClone (Sam Waksal and his daughter Aliza) had sold all their shares in the company on that same day, December 27th, and she immediately sold hers as well. This in itself was a breach of client confidentiality and insider information because no one knew about it but their stockbrokers. By virtue of the position Mr. Bacanovic (Mr. Faneuil’s boss) at the brokerage company of Merril Lynch he was not to mention or discuss the actions of any of his other clients. b) Even though Martha Stewart did not know about the FDA’s unfavourable report about ImClone, the sudden ‘dumping’ of the shares on the market was enough for her to speculate that there must be something wrong and that she should get her shares sold as quickly as possible in order to obtain the best possible share price or avoid a loss. Tipped with the knowledge of the Waksals actions and her intuition of imminent disaster she ordered that her shares in that company be sold as quickly as possible. c) She called Sam Waksal as soon as she received the tip-off in the hopes of obtaining the reason behind their actions. d) When investigated by criminal authorities she instructed her secretary to change the original message the secretary wrote from Mr. Bacanovic and then thought better of it and advised the secretary to revise the changes and restore the original message. She also lied repeatedly to criminal authorities on the real reason behind the sudden sale of her shares. 2.Did the U.S. Attorneys and the Securities and Exchange Commission use good judgment in the indictment of Martha Stewart? Do you believe that her indictment was based on evidence of a serious crime, or do you believe that prosecutors consciously or unconsciously had additional motives for pursuing the case? It is our belief that good judgment was exercised in indicting Martha Stewart. The indictment was based on the evidence of reasonable intent. Martha Stewart on hearing of the actions of the Waksals, and making reasonable judgments that the company was in trouble, intended that she should not make a loss on her investment in ImClone and made immediate moves and succeeded in selling her shares in the company for a profit of $228,000. If she had waited until December 28th when the share price fell to $45.39 per share she would have made only $178, 292, a loss of $49,708. Also the trading of Martha Stewart’s shares occurred during the company’s blackout period which commenced on December 21st. At this time no shares from the company were permitted to occur and the stockbrokers at Merrill Lynch would have known that and should have advised their clients accordingly. It is our belief that prosecutors might consciously have had additional motives for pursuing the case. Martha Stewart a celebrity of high profile would sell newspapers if investigated and later indicted. A prosecutor who was able to make a strong, believable case would bring fame to himself/herself and possibly new job opportunities. 3. Do you agree with the jury that she was guilty beyond a reasonable doubt of the conspiracy and obstruction of justice charges? We agree with the jury that Martha Stewart was guilty beyond a reasonable doubt of the conspiracy and obstruction of justice charges. To establish a reasonable doubt of conspiracy, four main things must occur: a) Two or more persons in some way or manner, coming to a mutual understanding, in trying to accomplish a common and unlawful plan as charged in the indictment. An example of this includes the breakfast meeting between Martha Stewart and Peter Bacanovic on January 16th – after the sale of the shares – to construct a statement that they reproduced to the criminal authorities – that is, that Martha had agreed to sell her shares if the share price fell below $60.00 per share. Another example was illustrated when Douglas Faneuil was persuaded by his boss (Peter Bacanovic) to agree to the conspiracy constructed by his boss that there was a $60 stop-loss order on Martha Stewart’s ImClone shares. b) The person willfully became a member of such a conspiracy. Mr. Fanueil accepted a bribe from his boss (Peter Bacanovic) in the form of an extra week of vacation and a paid trip, so that he would not reveal the fact that Martha Stewart had been tipped off. Fanueil’s actions were acts of choice. c) That one of the conspirators during the existence of the conspiracy knowingly committed at least one of the methods (or overt act) described in the indictment. Bacanovic and Stewart repeatedly lied to the government agencies and attorneys in order to try to hamper the investigations. Bacanovic tampered the worksheet by adding â€Å"@60† near the entry for Stewart’s shares of Imclone. d) That such ‘overt act’ was a knowingly committed act done in order to carry out or accomplish some object of the conspiracy. Justification of this was seen when Bacanovic informed Faneuil that he must call Stewart to inform her of the Waksal’s actions. He decided to leave the message with Stewart’s administrative assistant in order for her to receive the message to allow her to carry out or give instructions on what actions to take. Faneuil had asked Bacanovic if he was allowed to tell Stewart and he stated â€Å"Of course that’s the whole point† On realizing what the written policy inside of the office stated he was very worried. Obstruction of justice is a crime. It is an offense that arises when someone tries to prevent, impede or influence the administration of justice, for example, bribing a juror, threatening a judge or encouraging false testimony. Obstruction of justice occurred when Stewart and Mr. Bacanovic conspired and continuously lied about the reason why Stewart sold her shares in an effort to hamper investigations. One such lie was the prearranged plan to sell Stewart’s shares if the price fell below $60 per share. 4. Was her punishment, including both imprisonment and fines appropriate? Were the punishment of Peter Bacanovic and Douglas Faneuil appropriate? We agree that the punishment imposed on Martha Stewart was a little too lenient. Due to her actions after being tipped off, she was able to make a profit of approximately $50,000, thus a fine of $30,000 still meant that she was gaining approximately $20,000. We believe that all of her profits should have been disgorged as compared to her wealth the amount is relatively small anyway. The imprisonment of five months imprisonment and then five months of home confinement, we believe was a suitable length of time. The relinquishing of her duties to act as an officer of a public company did not do her any damage as she still drew the same salary as she was accustomed to and even had a bonus. In her after-sentencing statement, she said that this had been no more than a personal matter that had been blown out of proportion; this in itself indicates that she was not remorseful about her actions. Whether these punishments were a deterrent for future action is questionable as Martha Stewart still violated the terms of her house arrest and this had to be subsequently extended for three weeks. We think that the punishments imposed on both Peter Bacanovic and Douglas Faneuil were inappropriate. First we look at Douglas Faneuil. Although he was following the instructions of his boss, he knew what he was told to do was wrong. He knew there was a displayed, written office policy with respect to client information privacy. He accepted a bribe from Mr. Bacanovic and waited approximately seven months after the incident before coming forward with the truth. A short term of imprisonment at a minimum security facility might have been added. With respect to Mr. Bacanovic, his penalties should have been harsher. His position at Merrill Lynch afforded him access to certain non-public information and as such his actions should have been within the law. He disregarded the policies of the company with respect to confidentiality, he also used his position to influence and bribe another employee of the company to comply with a conspiracy in the commitment of insider trading and he also conspired with his client Martha, to concoct an alibi to avoid prosecution by the government. He should have been given a heavier fine since he was the main person behind the scandal and had gained commission on the sale of both the Waksal and the Stewart shares. Also a longer term of imprisonment would have been fitting, maybe a term of two years.

Ban on Plastics

Despite a popular demand for it, and Delhi, Jammu & Kashmir, West Bengal and Himachal Pradesh having already set a precedent, India will not have a blanket ban on plastic carry bags. The Environment Ministry has instead proposed putting in place a stricter regulatory regime for plastic manufacturers. If the manufacture of ‘biodegradable’ plastic carry bags is planned to be made mandatory, that too in strict adherence to the Bureau of Indian Standards (BIS) specifications, the stress is also on ‘better waste management’. That the Ministry would not go in for a blanket ban was clear on Thursday when it came out with its public notice on its draft notification for the new Plastic (Manufacture, Usage and Waste Management) Rules, 2009. A senior Environment Ministry official justified it saying, â€Å"There cannot be a blanket ban. Except, perhaps for Bangladesh, no other country has it. So, the new Rules have proposed a ban on the manufacture, stock, distribution and sale of any recycled, biodegradable and virgin plastic bags which is less than 18Ãâ€"12 inches in size and less than 40 microns in thickness. It will help in a better post-use collection (by rag pickers).† The Ministry will issue a final notification by factoring in the necessary responses to the draft received in the next 60 days. The new proposals are in line with Environment Minister Jairam Ramesh’s assertions in the Parliament that a complete ban on plastic would result in felling of more trees as people would switch to paper bags, a by-product of wood. He had advocated the promotion of biodegradable plastic carry bags instead, even as he blamed the municipal bodies for failing to properly dispose or recycle solid waste. Ramesh’s statement had then drawn sharp criticism from Delhi Chief Minister Sheila Dikhsit. Focusing more on the plastic manufacturers, the Ministry has now proposed that every plastic manufacturer should compulsorily code or mark each plastic bag whether it’s recycled, virgin or biodegradable along with its size and thickness. The manufacturer’s name, address and registration number issued by State Pollution Control Boards should also be marked in Hindi, English and local language, on each plastic carry bag or container. The new proposals have evoked a mixed response though. â€Å"There should be a uniform yardstick across the country. Delhi has banned plastic but Maharashtra has not. Biodegradable plastic is used in Delhi but not here. Our managing committee is meeting today to finalise our stance on the Environment Ministry’s new proposals,† Mahendra B Parmar, president, All India Plastic Manufacturers Association (AIPMA), told The Pioneer over telephone from Mumbai. India’s plastic industry is worth Rs 50,000 crore and provides employment to around 50 lakh workers. And plastic accounts for 3.9 per cent of India’s solid waste. Amiya Kumar Sahu, president, National Solid Waste Association of India, however, said the codification mechanism would help in a better solid waste management, as it would need even the smaller or illegal manufacturers to have a technology upgradation. â€Å"The big manufacturers are surely going to benefit then,† he pointed out.

Advantages of Genetic Engineering in Animals

Advantages of Genetic Engineering in Animals How successful would the Enviro-pig be if released into the general pig population in terms of longevity of the trait and continued benefits to the environment? And do the ethical issues stacked against the Enviro-pig validate its modified presents in the genepool? DNA is the foundation of all genetic material found in every living organism on earth. Commonly known as its full name Deoxyribonucleic acid, it is an electrically neutral group of atoms held together in a chemical bond known as a molecule . In this case a biomolecule produced by a living organism composed of nucleic acid, carbohydrates and proteins . This mixture is coiled in two biopolymer strands forming adouble helix. Biopolymers being a biomolecule of a polymer , which is a large molecule, composed of monomers . These biopolymer strands are composed of thirteen nucleotide monomers bonded in a chain, in turn called a polynucleotide . Nucleotides being singular polynucleotides composed of a nucleobase (co ntaining nitrogen). Being split into four bases each nucleobase is as followed: Guanine (C 5 H 5 N 5 O): Pairing in sequence with cytosine, guanine is derived from purine. Purine is an organic compound structured from a pyrimidine ring fused to an imidazole ring (called a pyrimidine-imidazole ring ). The base is represented as ‘G’. Adenine (C 5 H 5 N 5 ): Similar to that of Guanine, Adenine is derived from purine. In addition it’s an important part of adenosine triphosphate (ATP). ATP is the nitrogenous base adenine bonded to a five carbon sugar. These molecules have the ability to phosphorylise and add phosphate groups to other molecules. This allocation of phosphates allows energy to be released. It is this energy which is used in the cells of living organisms. The base is represented as ‘A’. Thymine (C 5 H 6 N 2 O 2 ): Combining with Adenine this nucleobase is often replaces with uracil in RNA . It is also the common cause of mutations in DNA. When in the presence ofultraviolet light, radiation causes alterations in the DNA molecule that inhibit normal function. These â€Å"kinks† are referred to as pyrimidine dimers . The base is represented as ‘T’. Cytosine ( C 4 H 5 N 3 O) : Pairing with guanine this base is a pyrimidine derivative. A heterocyclic aromatic ring that when as cytosine triphosphate (CTP) can performance as a co-factor to enzymes, able to transfer a phosphate to transfigure adenosine diphosphate (ADP) to adenosine triphosphate (ATP). Nucleotides of a DNA stand line up so each sugar and phosphate molecule connects. As said an adenine only pairs with a thymine and a cytosine only pairs with a guanine. The sugars are linked together by phosphate clusters via phosphodiester bonds, branching between adjacent sugar rings. The dual helix is stabilized by the bases of hydrogen bonds, before bunching together and constricting a vase line of rungs. All are curled to gether with multiple strands to form a chromosome . Being such a delicate sequence of codes , all of which contributing towards every characteristic in an organism, if altered or affect in a minor way a secession of errors and mutations can occur. Mutation is when an alteration of a nucleotide arrangement in the genome causes changes in an organism. Even if by a small change, the structural integrity of a creature can differ. But if this large sequence of coding is only effect in one base, in one strand, located in a single cell, the error theoretically should not affect the creature. However through Protein synthesis and mitosis a fault can replicate and spread.

Arab and Israel Conflict Essay Example | Topics and Well Written Essays - 1000 words - 1

Arab and Israel Conflict - Essay Example Chapter threeIntroduction 23 Over View 24 Conflicting Issues 26 Conflict Resolution 28 Relation with Iran 32 Conclusion 33 References 38 Bibliography 41 It is rightly observed by the research scholars all across the globe that the word ‘change’ is the only constant thing in the world of today. The massive changes in the arena of international politics, information technology and communication process have immense influence upon the terms and the trades of the present day business and life. The impacts of globalization and privatization have made the world a small place to live in. The developments in the segment of information technology have proved to be very beneficial for other inventions and discoveries. Huge successes in the domain of communication processes have facilitated the general public to have access of the instant information. But the most important factor has been that of international politics that has considerable influence upon the life of all the people. The international politics of the last century

Tissues can convert to stem cells Essay Example | Topics and Well Written Essays - 500 words

Tissues can convert to stem cells - Essay Example The difference between the fruit flies and other researched subjects is that the fruit flies larval ovary has an abundant supply of the fruit fly protein that is analogous to a protein (BMP4) involved in germ-cell development in developing mammalian embryos. Secondly, the cells in the larval ovary are unlikely to block reversion, in contrast to the cells that cluster cells encounter normally. Thus it appears that under these two conditions, embryonic stem cell testing can be avoided. My reaction to stem cell research really depends on what it is that is being used. While I have no objection to the use of the umbilicus or adult cells, I am completely against the use of embryonic cell use. A human embryo is a human being. We should not be killing humans. Abortion is an atrocity in this country as it is. The logic behind my position is simple. When a sperm and an egg combine it makes a human being. Even when it is still just one cell it is a unique and individual human being with its own set of unique genes. Every human being is a unique person and human life should be respected. How can anyone say its okay for "human abortions" to be acceptable and at the same time want to "save the whales" It is a horror on massive scale.

The Effects of Guerrilla warfare on Counter Insurgency Operation Essay

The Effects of Guerrilla warfare on Counter Insurgency Operation - Essay Example As these groups of people will be in minimum numbers when compared to the forces of the State, they might use key strategies to attack and overwhelm their opponents, and one among them is the guerilla warfare. Guerilla warfare is a quick and surprise form of attack carried out by a small group of insurgents against a much larger group of armed forces, causing immediate as well as minimum or maximum causalities and then withdrawing quickly. This form of warfare has been carried out by many groups against established armies achieving both successes and failures. Counter measures To counter this guerilla warfare by the insurgents, government or the official armed forces will indulge in Counter-Insurgency (COIN) operations. Nations try to reach the top echelons on the back of its strong armed forces. Nations’ with its army, navy and air force will protect its territorial integrity as well as gain superiority. On those lines, counter-insurgent forces are formed to carry out various military or armed strategies and actions against those insurgent groups, in order to eliminate their challenge against the state and also for the common good of the population including the local populace. Apart from indulging in armed actions, these COIN forces will further isolate and pressurize the insurgent groups and prevent them from guerilla warfare, by striking a good rapport with the local population. Thus, this report will first discuss how guerilla warfare gets formed and evolved, and how it is being used by the insurgent groups to fulfill their various needs. Then in the second part, the report will discuss how these guerilla warfare techniques and actions has made the COIN forces even more aware of any impending attack, thereby helping them to come up with a optimal strategies to counter them, using real-world examples. Guerilla Warfare As pointed out above Guerrilla warfare is surprise-filled irregular form of warfare carried out by a small group of combatants against a much larger regular armed forces in a terrain, which favors them. Apart from attacking the larger army’s convoys or forces, guerrilla army would also target their opponent’s resources including their arms and ammunitions depot, food supplies, etc, which can have a key impact on the way counter-insurgency is carried out. This way, they will try to cut the supply lines of their opponents, thereby weakening them to launch more attacks and finally make them withdraw. That is, as the small groups cannot directly confront the larger, equipped and dominant groups in a single battle, then knock them down and emerge victorious, they indulge in guerilla warfare to weaken them step-by-step. â€Å"†¦they seek through a constant campaign of sneak attacks to inflict continuous casualties upon their superior enemy forces and thereby over time demoralize the occupying forces and erode political support for the occupation in the homeland of the occupying forces.† (Singla ). This can be seen in many successful guerilla warfare based attacks, where there is a greater disparity in abilities and resources. So, it can be seen as a â€Å"simple strategy of repeated pin-pricks and bleedings that, though small in proportion to the total force strength, sap the will of the occupier to continue the fight.† (Singla). Another aspect of guerilla warfare is that,

Third Cinema- Essay Example | Topics and Well Written Essays - 1500 words

Third Cinema- - Essay Example The aspects of Third Cinema which are expressed by Sembene make the films controversial as well as a way to show the culture of Senegal and the controversies surrounding politics and society. Through the movies, there is a creation of boundaries of what it means to belong in a third world country and the social and political divisions which have arisen in response to this. Theory of Third Cinema The concept of third cinema is based on the social and political problems that are apparent in third world countries. These issues are defined as being separate from first world countries and hold several layers of what it means to belong to a third world country. The language that is developed to represent this shows a development and understanding of the practices and political and ideological overtones that are present in the countries. This is furthered by showing the pressing issues which need to be changed and how these have affected the nations without the understanding of those in pre sent day society. From the ideas of political and social overtones are three main strategies used to create the Third Cinema. This includes styles and narratives that are relative to the country represented, defamiliriazation from Hollywood style plots and national and local variations that are representative of the main issues of a given culture. While Third Cinema is able to provide the outlook of politics and society in the third world, there are other influences that create a different portrayal of the films. The main contrast that is seen with the films is based on the combination of Western ideologies and techniques, such as seen through Hollywood influences, as well as creating unique outlooks with both the techniques and content of the film. To change this, the third cinema focuses on representation that is specific to localities and nations. This includes an exotic look as well as content that is specific to each of the regions. By doing this, there is the ability to create a sense of identity and belonging as a part of the film, as opposed to fitting in with the Western concepts. To the Western viewer, this leads to an understanding that the third world problems are a part of the other and have a feel of belonging to the outside as a specific problem to that culture. By using this image, there is the ability to gain interest from the Western viewers while representing the context of a specific third world culture (Ukadike, 1994). Xala I the Cure â€Å"Xala I The Cure† is the first film that is displayed by Sembene as appealing to the specific politics and society that are a part of Senegal. The beginning of this is the setting that is chosen, specifically which represents the ideal of Senegal before colonialism. The setting and the representation of the exotic through costumes and other elements are seen as related directly to the Mande Empire. This is common for the area of shooting of the film. This contrasts with the setting after coloniali sm, which is represented by the French costumes that are a part of the story line. At first, this is seen specifically by the French invasions. However, as the story continues, there is conformity to the French styles in costume, ways of living and the ideals which are carried. The setting and the approach that is taken shows how there is a division between these two era which has created a different sense of belonging to t

Hawaiian studies Essay Example | Topics and Well Written Essays - 250 words

Hawaiian studies - Essay Example These events include Easter and Joiking, which is the act of singing yodel-like song-poems (Lucas 3). Sami people maintain their identity by maintaining the use of their language, many people still wear traditional and embroidered blue, and red felt clothing. They also have their own national anthem, flag, radio station, and representatives in the Norwegian parliament (Lucas 9). Their exclusive culture and isolation imply that they have been politically and historically marginalized. Sami culture is becoming more westernized since they are integrating more technology into their lifestyles. Chapter three of reading and films address how Sami language has transformed over the past centuries. The original Sami language is spoken Hawaiian or olelo. This expressive language comprises of vocabulary of about twenty-five thousand words (Irimoto & Yamada 361). However, Hawaii became a bilingual as compared to other European nations two years after the arrival of missionaries. Current statistics indicate that Hawaiian second-language speakers are more than native Hawaiian speakers are (NeSmith 4). This implies that the spoken olelo is on the verge of extinction. Therefore, there are some key strategies the Sami people are implementing to retain their language. One these strategies include the use of Hawaiian language in sports as the films indicate. Sports have proven to be significant social places for the young Sami people to interact and learn their original language. These sports include ‘Aha’I olelo ola, Ke Kula Kaiapuni o Anuenue Football, and Wai ‘Awaà ¢â‚¬â„¢awa (Irimoto & Yamada 365). Therefore, such activities are highly anticipated to reclaim and maintain Sami’s traditional culture and

Global entrepreneurship small business Essay Example | Topics and Well Written Essays - 500 words

Global entrepreneurship small business - Essay Example Brand names are easily identified and provide the customer assurance of quality and reliability in the international market place. Thus standard items such as books, cassettes, compact disks, shoes, clothes, watches and other items can be sold on the internet. Sourcing can be from national vendors of multi nationals who are located in the place or country of purchase. Delivery can be through express mail service. Payments will be through credit card. A developed model of online shopping is online auction. At present a number of small enterprises are providing specialized online shopping and auction services. Some examples are oddspot.com and cookieartexchange.com1 Web space, web hosting solutions, site development, web marketing and other services can be provided very economically across the globe by small entrepreneurs. A large number of small businesses and organizations need a web presence today. Their requirement does not entail provision by multi national corporations or large business houses as IBM or Microsoft. These services can well be provided by small business men and entrepreneurs who can easily deliver these services including security solutions for web sites. E mail and data management services can also be provided.

The life and crimes of an individual currently on death row or Research Paper

The life and crimes of an individual currently on death row or priviously executed in North Carolina - Research Paper Example Prior to the murders that she committed, Blanche had no record of previous crimes. She was an ideal human being, â€Å"a wife and mother, deeply religious by most accounts, [and] a pillar of the community (Hiles, 2005).† She had no past convictions and was the last person anyone would suspect of committing such horrific crimes, which is perhaps why she was able to get away with it for so many years. When she hurried and married the first man to ask her, Jim Taylor, no second thought was given. People assumed, and Blanche confirmed, that the marriage might have been rushed, but it was her quickest escape from her dysfunctional, bordering on abusive, family. Blanche and Jim were happily married for quite some time, and two children were the result of their love. After ten years, though, Jim turned more and more to alcohol and less to his wife, revealing shades of a past that Blanche had thought she had left behind her when she moved out of her father’s home. To make up for her husband’s gradual abandonment, Blanche turned to the company of many other men, involving herself in numerous affairs. Unfortunately, the affairs only satiated Blanche’s lust for a couple of years. It came down to the fact that her husband was still an alcoholic, and this brought back too many wanted memories for her to escape from by using other men. Instead of continuing to rely on affairs, Blanche decided to take a different route and rid her life of the people that were making her miserable. Blanche’s first murder was her father, the person who brought nothing but pain to his daughter’s life. When she visited him, she put arsenic into his beer, killing him. Despite doing this, though, Blanche did not feel any better about her life or her situation. She went back to the person she was currently having an affair with, Raymond Reid, a stockman at

Syllabus Designing - Review of Literature Essay Example for Free

Syllabus Designing Review of Literature Essay English for Specific Purposes (ESP) is often underestimated because of teachers attitudes which are often characterized either by condescension or reluctance. This is manifested in the belief that often prevails among teachers that ESP is for those who cannot teach the real language. A good example of this situation is English in other departments or The Language Unit at university where teaching this component of the students program of studies is generally the responsibility of junior members of staff and where it is a slot-filling subject in the teachers time-tables. This underestimation may be due to the fact many language teachers are not aware of what it means to be an ESP teacher, and what it takes to be successful in this practice. The situation in the Tamil Nadu is even more complicated as there is not even a separation between ESP and English for General Purposes (EGP) when it comes to syllabuses and methodology, and who is better trained to teach what. Needs assessment, which is a major component of ESP, never exists, and, if does, it is never systematic, but rather based on teachers intuitions. Moreover, the methodology adopted in teaching never differs. That is, a teacher would enter a class with the same kind of methodology in mind regardless of the aims of each program. Unfortunately, programs are always put in the same basket and are always simply labelled as programs for Teaching English. As a matter of fact, English is not always just English for there are particularities that ought to be taken into consideration when designing syllabuses and practicing teaching depending on the objectives set for each situation. Definition of ESP (English for Specific Purposes) The term of ESP is generally represented as ‘English for Specific Purposes’, which emphasizes on the students’ purposes and refers to the whole range of language resources (Robinson, 1980). A definition of ESP given by Strevens (1988, p. 1 2) is that ESP needs to distinguish between four absolute and two variable characteristics namely: a. Absolute characteristics: ESP consists of English language teaching which is: designed to meet specified needs of the learners related in content (i. e. in its themes and topics) to particular disciplines, occupations and activities entered on the language appropriate to those activities, in syntax, lexis, discourse, semantics, etc. in contrast with ‘General English’. b. Variables characteristics: ESP may be, but is not necessarily: restricted as to the language skills to be learned (e. g. reading only, etc. ) taught according to any pre-ordained methodology (i. e. ESP is not restricted to any particular methodolog y – although communication methodology is very often felt to be most appropriate). Munby (1978, 1996) defined ESP in relation to ESP courses based on the analysis of the students’ language needs. His definition of ESP is still current as follows: â€Å"ESP courses are those where the syllabus and materials are determined in all essentials by the prior analysis of the communication needs of the learner† (p. 2). The interpretation of the expression ‘learner need’ deals with two different aspects of needs (Widdowson, 1984, p. 178), referring to (1) what the learner needs to do with the language once he or she has learned it. This is a goal-oriented definition of needs and relates to ‘terminal behavior’, the ends of learning. (2) [W]hat the learner needs o do to actually acquire the language. This is a process-oriented definition of needs, and relates to ‘transitional behavior’, the means of learning. In ESP, the ends of learning are as important as the means in spite of being normally goal-oriented (Hutchinson Waters, 1987; McDonough, 1984; Robinson, 1991), that is, ESP is meant â€Å"the teaching of English, not as an end in itsel f, but as an essential means to a clearly identifiable goal. † (Mackay, 1978, p. 92) The term of ‘ESP’ has thus been used by different people to mean different things (Blackie, 1979). Nonetheless, the claims for ESP normally have in common in a sense that ESP is not a new approach, but an emphasis on English teaching that should be matched to the students’ specific needs and purposes for their study of English (De Jesus, 1999; Hutchinson Waters, 1984, 1987; La Perla, 1984; Mackay, 1978; McDonough, 1984; Munby, 1978, 1996; Robinson, 1980, 1991; Strevens, 1977; Swales, 1985). Chambers and McDonough (1981) argue that the ‘specific’ in English for specific purposes should refer to both the purpose the language is being used for and the language itself. Three kinds of purposes suggested by Mackay and Mountford (1978) are: 1. â€Å"occupational requirements†, e. g. for international telephone operators, civil airline pilots, etc. ; 2. â€Å"vocational training program†, e. g. for hotel and catering staff, technical trades, etc. ; and 3. â€Å"academic or professional study†, e. g. engineering, medicine, law, etc. Accordingly, an ESP course is pertinently purposeful and is aimed at the successful performance of either occupational/vocational or educational roles (Robinson, 1980) or both. Moreover, Robinson (1991) argues that the language produced as a feature of ESP should be good enough for the job and not be necessarily native-speaker like, but be the communicative strategies and effectiveness of the non-native professional users of English. History of ESP According to Johns’ (1991) discussion, the ESP history in brief with respect to its development and expansion throughout the world has been influenced by the major theoretical and applied schools of linguistics and developed into four phases. The first phase (the 1960s and the early 1970s) was the structure-based phase of linguistic (i. . lexical and grammatical) features of academic and professional registers, for example, the language of electrical engineering and the language of law (e. g. Herbert, 1965). The second phase (the late 1970s and the early 1980s) was the discourse-based phase of register analysis where the function and purpose in discourse became more rhetorical (e. g. Trimble, 1985). The th ird phase (the integration of the discoveries in phase 1 and phase 2) was communication-based phase of systematic analyses of the target learning ituations which concentrate on Munbyian concepts of ‘notional-functional curriculum’ (Munby, 1996), namely: (a) the communicative purposes of speaker/writer; (b) the setting for language use; and (c) the mode of communication and language use. This leads to the language teaching in a communicative approach. The fourth phase (the late 1980s and the 1990s) has been focused on the strategies which learners employ to acquire the target language where the needs analysis (or needs assessment) centers on activities or procedures leading to effective teaching and learning (e. . Hutchinson Waters, 1987). Throughout the past four decades of the history of ESP, the areas of theoretical development and interest in teaching and learning of ESP, relating to the two main branches of ESP: EST and NON-EST, seem to include an interest in regis ter, discourse analysis, the specification of students’ needs (and wants), study skills, or in various methodological approaches to the development of communicative competence (Flowerder, 1990).

The Virtuous Beings Essay Example for Free

The Virtuous Beings Essay Modern society glorifies people for much pettier accomplishments when compared to that of the ancient times. During the twenty-first century, a convicted felon may come back after serving a prison sentence and present himself as a figure of perfection. Less than five years ago, a football player, named Michael Vick was arrested and convicted of illegal actions involving the maltreatment of domesticated animals. Shortly after serving his sentence, he was once again beloved by his fans and rewarded with a phenomenal contract which would be worth wild in any corresponding lifetime. Looking at these examples, it’s easy to see how corrupted society is today. In the ancient world, their society was very more virtuous. Because of the different virtues of the time, it took a great deal more to become a public idol to the people. Virtuous figures from the ancient world are Gilgamesh, Abraham, Moses, and Odysseus. Gilgamesh, a seemingly corrupt leader, later embarks on a humbling journey which helps him to discover the true meaning of life; Moses, an honest and patient man, has his true values highlighted as God chooses him to lead his people out of captivity; Abraham, an apparent commonplace man, is presented as a bold individual who is not afraid to prove his allegiance to God; and Odysseus is a prime example of a hero in the ancient world who has his own ups and downs during a dangerous and eventful journey back home to the people he has always loved. When connecting Ma 2 a figure like Gilgamesh to the likes of a movie actor of modern society, it is impossible to ignore the contrast in inherent virtues of the people of the time. As Gilgamesh begins, Gilgamesh is actually quite the opposite of virtuous – he is a lust-driven, oppressive ruler who exercises harsh and immoral will upon his people. However, Gilgamesh’s progression towards becoming a virtuous individual is evident almost immediately as he becomes a companion of his ex-adversary, Enkidu. In fact, Gilgamesh and Enkidu go on to complete several tasks together; tasks that neither of them would have accomplished without one another. Similarly, Gilgamesh again proves his drastic change in character as he rejects Ishtar, a longing prostitute. Although Ishtar promises Gilgamesh a life of pleasure and riches, he responds by asking Ishtar â€Å"†¦how would it go for me? † (Gilgamesh, 24). Gilgamesh is reminding Ishtar that her past lovers had found her â€Å"like a brazier which smoulders in the cold, a backlight which keeps out neither squall of wind nor storm† (Gilgamesh, 24), emphasizing that Ishtar’s previous husbands had all received poor treatment from her. This signifies how much Gilgamesh’s character has changed. If he held the same ethics as before, he would have accepted Ishtar’s offer without hesitation. However, he is becoming a much more virtuous individual with greater concerns than mere self-gratification. Soon, Gilgamesh has even built a nice city for his people, abandoning his glory, wealth, and power to become a better individual. He is no longer self-indulged, and the death of his close friend Enkidu has truly humbled him. On a quest to find the secret to immortality, Gilgamesh realizes that what he should actually be seeking is to become a better king to his people and a more virtuous individual in general. Gilgamesh uses his new wisdom to create a legacy for himself, serving as a prime example that the ancient times required much more from an individual to be certified as virtuous. Ma 3 Similarly, the Bible presents a series of examples which emphasize the difference in modern virtues from the virtues of the ancient world. Specifically, in the book of Genesis, God tells Abraham to â€Å"take his only son, and offer him as a burnt offering on one of the mountains† (Genesis 22. 2:3). Proving his undeniable allegiance to God, Abraham leads his only son to the mountain and builds an altar for sacrifice. Right before Abraham was going to strike his son, an angel of the Lord interrupted, telling him not to lay his hands on his son, and then added â€Å"because you have done this, I will indeed bless you†¦Ã¢â‚¬  (Genesis 22. 16). Because of Abraham’s blatant devotion to the Lord, he is rewarded with a blessing and a promise to make his offspring â€Å"as numerous of the stars of heaven† (Genesis 22. 17). Abraham’s display of loyalty is significant as anyone who would do this in the modern world would certainly be deemed insane rather than allegiant, further emphasizing the difference in virtues today to that of the ancient world. Another example in the Bible may be seen as Moses is chosen by God to lead the Israelites out of virtue. The fact that God chose Moses, an unassuming and ordinary figure of the time, proves that the leaders of the ancient times were not famous, good looking, or wealthy like the leaders of today. In fact, Moses is even described as having a speech impediment. Despite his uncertainty, Moses put everything aside and did what God told him to do and fulfilled his calling to lead the Israelites out of captivity. After Moses led the Israelites out of Egypt, a close-knit community was formed, and the people and God would agree on a covenant. This covenant was very closely followed and viewed as a necessity to live a virtuous life. Although Christians still live the same covenant with God today, it is much less closely followed than it was during the ancient times. Ma 4 Finally, The Odyssey is another telling example which helps to differentiate the virtues of the ancient times to today. In The Odyssey, Odysseus, the king of Ithaca, has been trying to find his way home for twenty years. Ever since the beginning of his trip, Odysseus is introduced as a strong and authoritative figure. However, his journey is filled with temptation, and Odysseus does give in at times. This may be seen when Odysseus chooses to sleep with Circe, despite his yearning to return home to his wife Penelope. This is the complete opposite of a virtuous deed, and it does not go unnoticed. Calypso, a nymph who falls in love with Odysseus, takes note of the disparity among the gods. She is fairly irritated by the fact that male gods may sleep with mortal lovers, while the affairs of the female gods are considered unacceptable, as Calypso describes by saying, â€Å"you hate it when we choose to lie with men† (Odyssey, 281). This emphasizes the double standard among the gods – even in the ancient times, outsiders could see how wrong it was to have a love affair; Calypso is helping to point out the prevalent awareness of equality of the time. Although Odysseus is looked upon as a heroic figure, his immoral actions are highlighted and criticized. In modern society, many public figures would instead have their abrasive actions swept under the rug. After reflecting upon the examples of the ancient world, it becomes clear that there is a wide division between ancient and modern views of what to expect from a human being. In the modern world, simply being wealthy or famous would allow a person to share in the immunity of a God in the ancient world. Today, greed plays a large part in the outcome of everything. Unlike in Gilgamesh, mortality does not change people for the better; instead, people become more self-centered. As a result, today’s society has become just as savage as students read about in books Ma 5 about prehistoric times. Modern life may be compared to a popularity contest, whereas in the ancient world, individuals were required to make names for themselves. It’s no wonder why the people we read about such as Gilgamesh and Moses are viewed as fables or myths; nowadays, only a handful of people may be classified as anything close to their status. In the modern world, these people are praised and worshiped because there are no others quite like them. It should be made a point to try to work toward having a community full of people like Gandhi and Gilgamesh instead of having a society which only looks up to them. This way, society would be able to present a more accurate depiction of a community which aspires to be virtuous.

The Globalization And Localization Factors That Affect Next Marketing Essay

The Globalization And Localization Factors That Affect Next Marketing Essay In todays world international business have become easier because of the globalization. International business now has grown over the years because of the benefits it has offered to the world. In this report I will be focussing on the International strategies of the brand NEXT which has business. Next is one of the main fashion labels s and it is certainly one of the biggest Multi-national these days. This report will also focus on micro and macro factors that affect the company. Then I will be considering the globalization and localization factors that affect NEXT. Key environmental variables and core competence with relation to its international strategy. In the end recommendations would be made for the development of the companys international operations. Next was established in 1864 in Leeds as J Hepworth Son, Gentlemans Tailors. The company started with women wear store in 1982 and then gradually upgraded to men, children and interiors. The company was named NEXT in 1986. Now NEXT is a retailer based in UK. It offers its customers stylish and good quality products in different sectors like clothes, footwear and also home products. NEXT distributes its products to the customers by three main channels. These channels are the NEXT Retail, a chain of 500stores in the UK; and the Next Directory, which is a direct mail catalogue and transactional website with more than 2million customers and Next International, with more than 170 stores overseas. (www.nextplc.co.uk, 2009). According to Rugman Hodgetts (2002) International Business is defined as different forms of business transaction taking place across national borders for the purpose of satisfying the needs of individuals and organisations. International business has become more common in past few decades and it has helped many poor countries to grow and has allowed some developing countries to grow more. Across the border transactions have allowed the multi-national companies to reduce their production cost by going to the less developed countries where wage rate is lesser than their own countries. According to Griffin and Pustay (2006), International business consists of the business transactions which are made between two or more countries. For example NEXT buy material from a country and ship it to Srilanka or Bangladesh for stitching and then it goes to different countries to the retail stores of NEXT. Nexts mission is to be the first choice of its customers in the UK and overseas for people who want quality, style and affordable prices. In todays world fashion is changing very frequently so the retailers like Next have to offer its customers with the new products. They just want their customer satisfaction by providing them with the better quality and design with compared to their competitors. Next strategy is to target different group of customers who not only look for good quality but also the better prices. It offers its customers of different classes with affordable prices. According to Gerald Tellis (1989), price is a very important variable in forming a strategy for a business. The public policy makers main focus is to check if they customers are getting reasonable prices for the products they are buying or if they are getting value for money. Another point that he mentions about what the economists look at, if the higher-price products are of good quality or the retailers are charging their customers more than the product worth. Nexts strategy is, they always look for their customer satisfaction by providing them with the affordable prices and the modern style, so that they dont get disappointed. According to Antony Dnes (1995), franchising is a better way to expand your business. Better understanding of franchising could result in successful revival of a business. Franchising authority awards different franchises to the producers by offering them the lowest prices for specific quantity and quality. Next have 170 franchise stores in different countries and have different price ranges for different countries. Nexts Strategy: According to Nexts Annual report of 2009 (ir3.quartalflife.com), their main strategy is to achieve their financial objective which is the delivery of sustainable long term growth in their shareholders value. In 2009 their EPS have gone down, so it is very hard for them to cover up quickly so it is a bit challenging for Next. But they are confident that their long term objectives can be achieved by the strategies they have made after 2009. The board needs to manage its strategic risks to deliver the long term benefits to its stake holders. This strategy has just been planned on normal basis to know how to achieve their goals, but Next is facing challenges from its competitors for example Marks Spencer have opened a eco-factory in Srilanka which would help them reducing their cost, as the plant in that factory is solar so it would use less electricity. So Next has to come up with something special to cut down its cost of production and be able to achieve its financial objectives. Thei r main focus is to improve and develop their range of products in different parts of the world and keep its customers with in the fashion world. They have given their stores a demanding financial criteria and those stores must meet those figures before other investments are made. They are also trying to increase their customers who are shopping by using their Next Directory. They have also considered increasing their gross and net margins by better sourcing and controlling the cost of their products. Macro-environment According to Jobber D, (2007) macro environment consists of environmental issues that may affect business performances. This analysis takes into account those factors such as political, economic, social, technological, legal and environmental changes. For successful marketing strategy the company has to focus on these changes, bearing in mind that all these factors are interlinked with each other. Political/Legal The current economic condition faced by the world economy has forced the UK government to take serious notes on their legislations. For instance the recent decrease in VAT was a strategy to increase consumer spending, which was a positive implementation for the current economic condition, however, it did not affected a lot as the government failed to raise consumer lending by financial institutions. This failure of government approach affected NEXT as the peak season (Christmas Sale) went without high sales. Mr Wolfson (CEO) of Next plc has also mentioned the same situation in one of his interviews regarding government policy to tackle the economic conditions. (www.ft.com, 2009). The government latest intervention to kick start the economy was to cut down its interest rate to its all time low last month. The company can benefit from it as it has the opportunity to borrow the money at a very less interest rate. Moreover, NEXT has also got opportunity to attract more investment through share in the stock exchange, as savers will be more willing to invest their money instead of saving it on such a low rate. Economic Since the end of the year 2007 and early start 2008 the world economy was struck by reverse economic condition since 1990. With less consumer spending and global financial institutions collapsing it has resulted in Next share prices plunging. Current affairs show that Next need to survive the economic turbulence instead of its growth. However, companys branding and well established customer loyalty will help the company to survive in this downturn. Socio-culture Speaking of the socio-cultural future it should be mentioned that people retire earlier these days, as well as working shorter hours. Average working hours per week have decreased over the last 20 years. As a result many people have more spare time. This means they have time to compare prices in the High Street and the quality of goods and services from retailers. But as a result, they spend more time in the shops. Another issue these days is the Child Labour. Due to efficient media consumer are well informed and therefore this awareness challenges them to care. They dont want to buy just a product but they look beyond into the production process, labour used, etc. That leads to the issue of child labour in the clothing retail sector. There are companies who rely on it in order to be competitive in the domestic market. For example Marks Spencer had been accused of using child labour in Indonesia in 1999. Once the customers become aware of such practices, companies get into real trouble if they do not respond immediately. Consumers do look for best price but not at the cost of their ethics. NEXT has taken a good care of this and is never found involved in this. (www.hausarbeiten.com, 2009). Environment After looking at the current position and the threats from the different green organizations regarding global warming NEXT has taken many environmental friendly steps. Firstly its 98 stores recycle cardboard and plastic. Annually 11,935 tonnes of cardboard and polythene is recycled that is reused in making 12 million hangers. It has also decreased 7.1% carbon dioxide emission per 1000 parcel delivered/collected. (www.nextplc.co.uk, 2009) Technology Next is equipped with the latest technology in order to compete with their competitors. They have a team of 100 technologists to ensure that they sell safe products. Their technologists have developed specific manuals for the suppliers to ensure they comply with the law and safety and performance standards. (www.nextplc.co.uk, 2009) Micro-environment: According to Jobber (2007), micro-environment consists of the actors in the firms immediate environment that affects its capabilities to operate effectively in the chosen market. The main factors are customers, suppliers and competitors. Customers: According to Jobber (2007), customers are at the centre of the marketing philosophy and effort. So it is very important to satisfy your customers and understand their actual needs. In 2003, the main customer for NEXT were aged 25-44, but in 2008 that has changed to 20-34-years-old (www.nextplc.co.uk). Therefore, it seems to be that the NEXT is now attracting more young customers. The next always had good quality, good reputation and excellent customer service. The other is that they have also varied their product and introduced more style into it. Its online service is also becoming popular. Suppliers and Distributors: According to Jobber (2007), business is really influenced by the suppliers of a company. Next wants its suppliers to work with them closely, and they are committed to provide their customers with the products which are made in tidy and safe environment. Their main aims are to communicate their moral standards to the suppliers, and to promote good work places in the countries where their suppliers are, and to build capacity with the international chain of suppliers. Next by itself is a retailer so it reaches its customers by franchises and online web orders. It has also the Online Web directory, from where its customers can buy the products they want and also they have broachers and catalogues to sell their products to the end customers. Competitors: Next has two main competitors Debenhams and Marks and Spencer Group. Due to the recession many multi-nationals sales and their profit has gone down, and now they are making strategies to achieve their objectives. Because of the recession companys were unable to achieve their planned growth and targets. Because of economic downturn many companies have fallen to make cuts in their aspects of business. This could be a good short-term solution but it could cause problems for providing the customers with the quality and efficiency they want in the products. MSs net profit has gone down in 2009 if compared to 2008s figures. In 2008, its Net profit was  £821m which was recorded as  £506m and their earning per share has also dropped by 35.7p per share, as it was 43.6p in 2008 where as in 2009 it was recorded as 28.0p. But they are now trying to cover up their net profit of last year by eco-factory in Srilanka which would help them save their costs of production as it uses the solar power so it would use less electricity. They have planned,(Plan A) to response to the challenges and has set sustainability targets for 2012, and the commitments to achieve their goals. They have now started online international delivery to 80 countries, which could help them gain more customers all over the world as people would not have to visit the store or if they do not have any store nearby they can still get the MS products online (corporate.marksandspencer.com). Debenhams Annual report for 2009 shows that its net profit and EPS have grown as compared to 2008. Net profit was recorded as  £95.1m in 2009, whereas in 2008 it was  £77.1m and their EPS was noted as 10.0p in 2009 and in 2008 it was 9.0p per share. Their main strategy to boost up their business in the future is to have more space for their stores, have multi-channel expansion and balance sheet optimisation, which would help them. In this era of recession Debenhams have managed to make more profit then the previous year by their strategies. According to their report of 2009, market shares gains have been achieved on a regular basis for some two years. This shows that they have been planning for their business very well so that they can overcome any hurdle. (www.investis.com) If we see the financial report of Next for 2009, it is a bit disappointing for them as its Net Profit has gone down from  £353.9m to  £302.3 in 2008 to 2009 respectively. And the EPS has dropped by 12.7p per share as it was 168.7p in 2008 and in 2009 it decreased to 156.0p per share. (ir3.quartalflife.com) Globalization Localisation drivers: According to Ricky and Putsay (2006), international business has grown very quickly in the past ten years that many experts believe this era to be the era of globalization. According to him Globalization can be defined as the inexorable integration of markets, nation-states, and technologies. Globalization has now enabled the people to reach around the world more quickly and cheaply than ever before. The world is getting closer day-by-day in terms of business, now it is normal that a company would do business with companies in other countries. It has now led to the escalation of international trade in the economies of the world. Next has been very benefited by the globalization as it has been able to get the products stitched at very cheap price from the Asian countries. Globalization drivers Next understands the needs of its customers from different areas of the world and offer them with affordable prices. Next have very effective marketing channels like accessing the customers via internet, fashion magazines, TV etc. According to Simpson and Thorpe (1999), understanding differences between customers and difference in terms of product and service expectation is very important for international expansion. Next understands the need of its customers and provides its customers with the up-to-date fashion and it keeps them with the rapidly changing style with affordable prices. According to Ricky and Putsay (2006), importance of the foreign direct investment is also increasing because of globalization. It was just 2.4% in 1980 but by 2004 FDI equalled almost 22% of years GDP. It can help the business to grow internationally and earn more profit for the company. FDI can help the business in different ways. For example if Next goes to do business in Pakistan, the currency fluctuation would help Next, as in when it invest in Pakistan it would invest in Pakistani rupees and after getting the product and selling here in UK in pounds would definitely help to boost their sales profits. They would get cheap labour in Pakistan so they would save their production cost. As Pakistan is still a developing country so it would want multi-nationals to invest there, and they may provide Next with Tax Subsidiary for some time. Core Competence: According to Ricky and Putsay (2006), a core competence is a distinctive strength or advantage that is central to a firms operation. The companys main strength would be its core competence over its competitors. The company needs to identify the things they do well. Nexts core competence over its customers is it targets a wide range of people from different classes by offering the products and style they want with affordable prices. They also have been focussing on expanding their business in different parts of the world through franchising. It has also created its brand image overseas, which is very important for a company. According to Keller (1993), brand image is perception about a brand as reflected by the brand associations held in customer memory. Nexts brand image helps the business to grow much faster for example if a person has a good perception of Next in his mind, he would tell his friends and the people he knows to buy its products, which is a very efficient way of market ing. Next has an edge over its competitors that it is targeting the market which comprises of mainly the youngsters. As youngsters are more into fashion then anyone so it helps Next to get more customers then its competitors. As mentioned earlier, Next strategy is to provide its customers with the quality and style they want with affordable prices whereas if we look at the prices of its competitors, they target higher class. Recommendations: Next should try to bring more innovation in cloth manufacturing because by doing this they could attract more and more young customers to buy their products and also concentrate on the changing trends in the fashion world. Because of the economic crisis all over the world people do not want to spend more, so Next should do price cutting in their products and have promotional offers in the store to attract more people. Next needs to follow its competitors, as it is the era of global warming, so they should work on making the world eco-friendly by building plants like MS did, it would also reduce the production cost for them. To promote its brand Next could also target the markets where they have suppliers and the neighbouring countries for example if they are manufacturing there products in Bangladesh, they could target the neighbouring countries as there are a lot of emerging economies so it would help them grow their business in those economies. And if they promote their business in countries like Pakistan where they would not have a lot of competition as Next has a well-known brand name and the competitors would not be able to compete with their strategies and they could make much profit from these types of markets.

the 5 women :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Louie, Jason   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  3/6/04   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Chinese 2 5 °   Ã‚  Ã‚  Ã‚  Ã‚  The five women in the family did not get along well together. They were backstabbing each other and no one trusted each other. They fought about position in the family. The woman with a higher number is the lower ranked wife. Everyone wanted to be the higher ranked wife so that they get the best care from the husband and the servants. They had to live in the same home together, which caused many problems. They were not able to live peacefully with one another.   Ã‚  Ã‚  Ã‚  Ã‚  The scariest woman is the Fourth Wife because she was able to kill two people in two days. First, she killed Yan’er by leaving her out in the cold to freeze to death. Second, she tells the secret about Third Wife’s affair. Third Wife gets hanged in the forbidden room with gallows. The reason why Fourth Wife is scary is because she is able to kill people when she gets angry. If you make friends with her and tell her some secrets, she can blackmail you with the information. If you don’t comply with her, she can kill you.   Ã‚  Ã‚  Ã‚  Ã‚  I feel that the women in the movie are living a hard life because they all have to live together without liking each other. Everyone goes behind each other’s backs and betrays each other. If no one tried to compete for position in the family, no one would hate each other. Everyone would get along fine and no one would have to die. For example, Second Wife had two different sides to her. One day, she would be happy for you. The next day, she will treat you very badly. If she doesn’t do this, the family would be in a lot better situation.   Ã‚  Ã‚  Ã‚  Ã‚  The Fourth Wife killed Yan’er for her own benefit. Yan’er was killed because she broke the rules of the home. Although, Fourth Wife didn’t want Yan’er to die, she had to make her sit outside in the cold to protect her reputation.   Ã‚  Ã‚  Ã‚  Ã‚  Fourth Wife also killed Third Wife. However, it was because she was drunk. When she was drunk, she wasn’t able to control herself and put herself together. This was irresponsible of her. Because of her irresponsibility and selfishness, two people had to die.   Ã‚  Ã‚  Ã‚  Ã‚  If I were the Fourth Wife, I would try to find a way to become a better person instead of the selfish and irresponsible person I am.

Vague Descriptions in Joseph Conrads Heart of Darkness Essay examples

Vague Descriptions in Heart of Darkness       A dark, unfamiliar setting and a suspenseful plot give Heart of Darkness the characteristics of a good novel, but what really stands out is Conrad's writing. The story is full of vague imagery and descriptions that the reader must contemplate in order to fully understand. Writing so vividly was an impressive feat for Conrad, who was actually not a native English speaker. (Dintenfass) His style includes a great deal of subtlety and complexity. Although it may seem as if Conrad was trying to confuse the reader, his actual goal was to create a work of art, rather that just a novel. Several critics have put down Conrad's work because his writing is so vague; they claim that it lacks order and clarity. Conrad occasionally wrote back to these critics and explained why he chose to construct his stories in such a vague manner. Says Professor Mark Dintenfass, commenting on Conrad's own opinion about his writing: "For Conrad then, as for most modern artists, the world as we experience it is not the sort of place that can be reduced to a se...

The Reporter & the Screenwriter Essay examples -- Analysis, Nathanael

The late Steve Jobs in his 2005 commencement address at Stanford University eloquently traced the imprint of a calligraphy class he had taken at Reed College years before to the creation of today’s worldwide standard in computer typography. Esteemed architect Frank Gehry can trace the imprint of his college job working in a museum to his current success, and moreover can trace the imprint of a different piece of art to each one of the buildings he has created. President Bill Clinton can trace the imprint of witnessing Martin Luther King, Jr.’s 1963 â€Å"I have a Dream† speech to his decision to devote his life to politics. However, in regards to the novelist and tracing the imprint of their work, it appears the dominate voice echoing through the pages of their novel is life experience. Two such novels that trace their imprint from life experience are Sister Carrie by former newspaper reporter Theodore Dreiser, and The Day of the Locust by screenwriter Nathanael West. In obvious ways Sister Carrie shares its subject matter with the newspaper. As it is well-known, the model for Sister Carrie’s main character is Dreiser’s sister Emma, who fled from Chicago to New York with her married lover after he stole money from the saloon where he worked. Dreiser based the character of Sister Carrie on family experience, but the novel’s origins are journalistic as well as personal. The entire New York City section of Sister Carrie, with its dual emphasis on the glamorous world of the theatre and the miserable existence of the tramp, mirrors actual newspaper stories of both Broadway and the Bowery. Men similar to Hurstwood in his downward spiral could be easily found in the newspaper. Dreiser may have written an article about a trap who, like ... ...dull, heavy labor,† West writes of the transplanted Midwesterner, â€Å"Their boredom becomes more and more terrible. They realize that they’ve been tricked and burn with resentment. Every day of their lives they read the newspapers and went to the movies. Both fed them on lynching, murder, sex crimes, explosions, wrecks, love nests, fires, miracles, revolutions, wars†¦ They have been cheated and betrayed† (West 177-178). The riot at the gala premier at the end of the novel is their revenge on the false promises of movies. Two very different stories written by men who let their life experience trace an imprint through the pages of their novels. Theodore Dreiser with the traces of the who, what, where, when and why of the newspaper reporter and Nathanael West with the traces of montage and dialogue of the screenwriter - both leaving their unending imprint as novelists.

New technological

Many people predicted the downfall of the IT industry a long time ago. After the technological bubble burst by 2000, their predictions saw reality with many dot com companies closing down in the face of investor uncertainty. Huge brand names like AOL eBay took a hit as well and only the strongest like Microsoft survived. Many thought this was the end of technological era even though this was not the case. The IT sector had not stopped growing nor had it declined; it had just stabilized and kept growing, even if not at the same rate as it was a few years ago. With technological advancements coming in by the hour, it is only natural for new people to rise above the rest to make a name for them selves among the multitude of entrepreneurs and whiz kids of the past and present. People like Bill Gates and Steve Jobs still might be the key players in the industry, they do however are no longer the new blood that this industry almost always seems to require in order to stay on top. Google founders Larry Page Sergey Brin could arguably be the next major players after the ones that actually started the hype of the technological era. More recently however, new faces have come up. Two of these are as follows: Technology: Youtube Description: Videosharing website that allows its user to upload, view and share audio visual clips. Popularity: Close to 8 million hits per day. YouTube was founded by Chad Hurley, Steve Chen, and Jawed Karim, who were all early employees of PayPal. Prior to PayPal, Hurley studied design at Indiana University of Pennsylvania. Chen and Karim studied computer science together at the University of Illinois at Urbana-Champaign. The domain name â€Å"YouTube.com† was activated on February 15, 2005, and the website was developed over the following months. The creators offered the public a preview of the site in May 2005, and six months later, YouTube made its official debut. Youtube became on of the fastest growing websites and even outpaced Myspace at this. Its business model is an advertising based revenue model where users clicking on ads are the source of revenue. This was an innovative idea and developed by the three youngsters with Chad Hurley being the Chief Executive Office and Steven Chen being the chief technology officer. Hurley, Chen and Karim got their start in the business world during the dot-com bubble and the bust that followed. Their venture money came in part through their connection to Roelof Botha, the South African former PayPal CFO. YouTube was born when the founders wanted to share some videos from a dinner party with friends in San Francisco. Sending the clips around by e-mail was not possible because they kept bouncing for being too big. Posting videos online wasn’t feasible either as no website allowed it. In 11 months the site became one of the most popular on the Internet because the founders designed it so people can post almost anything they like on YouTube in minutes. Steve Chen grew up in Taiwan until the age of 15, when his family immigrated to the United States. He attended high school at John Hersey High School as well as the Illinois Math and Science Academy and college from the University of Illinois at Urbana-Champaign. In June 2006, Chen was named by Business 2.0 as one of the â€Å"The 50 people who matter now† in business. Hence the person to look out for would be Steve Chen. Karim had a lesser role as he developed the website but was an advisor by the end. Their dreams were realized when Google bought Youtube for a whooping $1.6 Billion and made them the modern entrepreneurs of today. Technology: Fecebook Description: English social networking website. Popularity: Close to 8 million hits per day. The site was founded as Thefacebook in February 2004 by college sophomore Mark Zuckerberg at Harvard University with technical support from Andrew McCollum and financial support from Eduardo Saverin. The site was founded as Thefacebook in February 2004 by college sophomore Mark Zuckerberg at Harvard University with technical support from Andrew McCollum and financial support from Eduardo Saverin. Zuckenberg was not a new player in the field however. In 2003, Zuckerberg and friend Adam D'Angelo launched the Synapse Media Player. The player received high acclaim in its ability to predict songs to play based on the user's previous selections. Several software companies, including Microsoft, expressed interest in the player, though no formal deal was made. This is similar to the way Bill Gates was in his younger years; attaining acclaim as an avid programmer and being noticed by firms like IBM. Hence, it can be safely said that people like Steve Chen and Mark Zuckerberg are the modern day equivalent of Bill Gates and Steve jobs. They might not be as exceptional nor are their innovations as far reaching as Windows or iPod, they still are the current knights of the technological era and have done what their predecessors did before them; create something exceptionally unique with the ability to influence people internationally. References: Grossman, L. (2006). Time: Best Inventions, 2006. Retreived, March 22, 2007 from, http://www.time.com/time/2006/techguide/bestinventions/inventions/youtube.html Grynbaum M. (2004). Mark E. Zuckerberg ’06: The whiz behind thefacebook.com. Retreived, March 22, 2007 from, http://www.thecrimson.com/article.aspx?ref=502875

Internal and External Factors of Management Essay

Introduction Businesses rely heavily on the four basic functions of management Planning, Organizing, Directing, and Controlling; however, the skilled management of internal and external factors will ultimately determine the longevity of the company. Management teams are measured on how quickly they can build a company over a short period. However, the real measure is how well a company can continue to grow. Company success is continually evolving as the world changes, making it difficult on management teams to adapt as internal and external forces mold new paths. Google is a prime example of a leading company who must constantly evaluate their business objectives to keep up with the changing technological landscape. Traditional business models use a top down approach may leave the company unable to change, as the business leader is unable to change. â€Å"It is noteworthy that neither Larry Page nor Sergei Brin, Google’s founders, has proclaimed himself â€Å"chief software architect,† the badge Bill Gates wears at Microsoft† (Hamel, 2006) Instead the founders have designed a concept the makes every idea stand on its own merits. Internal and external factors such as Globalization, Technology, Innovation, Diversity, and Ethics carry large weight in management strategies and the method in which ideas are executed. Planning Planning is the first of the four management functions. Google manages to plan for their future by recognizing that planning requires research and development. Investing in new technologies takes time and money, and not every cent or minute can be dedicated to research without other sources for income. This is why Google invest in smaller companies to fund the evolution of change in the technological world. So even though the company’s overall growth may experience slow periods the overall income will continue to grow with the acquisition of these multiple smaller companies. Organizing Organizing is attracting people to the organization as well as assembling and coordinating the human, financial, physical, informational, and other resources needed to achieve goals. â€Å"Google is famously elitist when it comes to hiring. It understands that companies begin to slide into mediocrity when they start to hire mediocre people. Google’s grueling hiring process, akin to a Mensa test, values nonconformity nearly as highly as genius.† (Hamel,  2006) Google also allows their employees 20% creative time, which is off budget, and off project. This off shift time can attribute to some of Google’s most profitable ideas and software implementation. Providing the creative outlet for the company’s highly creative employees has yielded great results and is part of Google’s overall planning model. Hamel, G. (2006, Apr 27). Management a la google. The Wall Street Journal Asia. Retrieved from http://search.proquest.com/docview/315425991?accountid=35812 The ultimate test of any management team is not how fast it can grow its company in the short-term, but how consistently it can grow it over the long-term. In a world where change is relentless and seditious, this demands a capacity for rapid strategic adaptation. In many cases, companies haven’t been changing as fast as the world around them.What the laggards have failed to grasp is that what matters most today is not a company’s competitive advantage at a point in time, but its evolutionary advantage over time. [Google] gets this. While Google’s growth will inevitably slow, there’s a good chance that its revenues will arc upward for years. Why? Because its novel management system seems to have been designed to guard against the risk factors that so often erode an organization’s evolutionary potential: When power is concentrated at the top, a tradition-bound executive team can hold a company’s capacity to change hostage to its own ability to adapt. That’s why it usually takes a financial meltdown and leadership change to set a company on a new course. It is noteworthy that neither Larry Page nor Sergei Brin, Google’s founders, has proclaimed himself â€Å"chief software architect,† the badge Bill Gates wears at Microsoft. Rather than assume they’re infallible seers with a divine right to dictate Google’s next strategy and the one after that, Messrs. Page and Brin have created a Darwinian environment in which every idea must compete on its merits, not on the grandeur of its sponsor’s title. Google understands that even as it’s ramping up today’s business model, it has to be buying options on the future by creating a lot of little â€Å"Googlettes.† Evolution demands a lot of new experiments; but experimentation takes time and money, scarce commodities when every hour of time and every dollar of capital have already been  allocated to some â€Å"mission criticalâ⠂¬  project. That’s why every Google developer can spend up to 20% of his time working on off-budget, out-of-scope projects. This time is more than a perk; it’s Google’s seed corn for the future. The payoff? In one recent period, more than half of Google’s newly launched products could trace their origins to a 20% project. You have requested â€Å"on-the-fly† machine translation of selected content from our databases. This functionality is provided solely for your convenience and is in no way intended to replace human translation. Show full disclaimer Neither ProQuest nor its licensors make any representations or warranties with respect to the translations. The translations are automatically generated â€Å"AS IS† and â€Å"AS AVAILABLE† and are not retained in our systems. PROQUEST AND ITS LICENSORS SPECIFICALLY DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY WARRANTIES FOR AVAILABILITY, ACCURACY, TIMELINESS, COMPLETENESS, NON-INFRINGMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Your use of the translations is subject to all use restrictions contained in your Electronic Products License Agreement and by using the translation functionality you agree to forgo any and all claims against ProQuest or its licensors for your use of the translation functionality and any output derived there from. Hide full disclaimer Translations powered by LEC. Translations powered by LEC.

Luxury Brands in India Essay

A luxury brand is a brand for which most of products offered are luxury goods. Luxury goods in general refer to products or services which are not fundamental and can be described as affluence. The three words which compliment luxury brands are high price, high quality and prestige. These brands create and set the seasonal trends and are also capable to pulling all of their consumers with them wherever they go. India being the second-fastest growing economy is believed to be one of the most sought after market by the luxury brands. Designers around the world have been taking inspiration from India’s rich fashion history with bright Bollywood colours, exotic saris, elegant embroidery and stunning jewellery. The growing number of Indians in the billionaire’s club coupled with a evident rise of the urban elite class has seen many international luxury giants queue up to woo the Indian customer who has a peculiar culture of â€Å"status†. A big brand like Chanel launched its 2012 Paris-Bombay Collection. in December of 2011 and Hermes put out a limited-edition line of saris, which instantly drew the world’s attention to the glamour and glitz of India. Luxury brands have thoroughly considered the significance of understanding India’s spending power and rituals as there are definite times when luxury spending isn’t welcome, but other times like weddings and festivals which are prime times for offering high-end, luxury items. As per Millward Brown Optimor consulting company the top 10 luxury brands are: 1. Louis Vuitton- $25. 9 billion, 2. Hermes- $19. 1 billion 3. Rolex- $7. 2 billion 4. Chanel- $6. 7 billion 5. Gucci- $6. 4 billion 6. Prada- $5. 7 billion 7. Cartier- $4. 8 billion. 8. Hennessy- $4. 6 billion. 9. Moet & Chandon- $4. 2 billion. 10. Burberry- $4. 09 billion. Features of Luxury market in India: ? India is the second fastest growing region in Asia Pacific for Luxury Products. ? The Indian market is expected to grow at the rate 25% over next 5 years. ? At $4. 8 billion, the luxury retail market has place for everyone. ? Apparel, jewelry & personal care are the biggest sells in the luxury market. ? Indian Luxury Market is worth $4. 9 Billion, it forms only 2% of global share thus there is a huge scope for expansion. ? There are 103,000 millionaires in India, 16,000 are added each year. ? Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier represent the highest form of craftsmanship and command a staunch consumer loyalty that is not affected by trends. Now that India has emerged as a hot market for Luxury Brands it is important for these brands to market themselves well to the Indian consumer. Most of the Luxury Brands attract a new consumer by indicating high brand worth. With introduction of several Luxury brands in India, Luxury Brand marketing has emerged as a significant ancillary service. Luxury marketing strategies are developed in a unique way which ensures success; some of the strategies are listed below: ? Brand needs to be â€Å"expansive†- it needs to be full of modernization opportunities for the marketer for satisfying the divergent needs of the luxury consumer ? Brand must always tell a majestic story heritage & performance or other aspects that goes on to build the aura of a brand over time. The story always accentuates the identity of the brand. ? Brand needs to be relevant to the needs of consumers-Depending upon the mindset of the luxury class, it is imperative for a brand to satisfy those needs, whether they be catering to recognition or functional use etc. ? Brand must always align itself with consumers’ values-A brand that does not concur with the basic values of a consumer’s society has a small chance of succeeding because luxury items are forms of expression or identification for a luxury consumer. ? Brand needs to perform-Irrespective of which category the brand belongs to, a performance assurance is a must. For all the above mentioned strategies to work there is a strong need for specialized marketing & PR function. These two services have become backbone of the Luxury Brands in India. Through my research I shall try to find out the role played by these agencies and also the activities under taken by various Luxury brands to establish themselves in India. A RESEARCH ON Fashion shows [pic] Assignment on research problem INTRODUCTION Research can be defined as a formalized curiosity. It is â€Å"The systematic investigation into and study of materials, sources, etc., in order to establish facts and reach new conclusions† Oxford English dictionary. In other words it can also be defined as â€Å"A process of finding out information and investigating the unknown to solve a problem† according to Maylor and Blackmon (2005). The topic of my research problem is FASHION SHOWS. My research shall revolve around answering questions like: 1. What brings about the success of these shows? 2. How it affects the fashion trends in a society? 3. How it affects the sales of a country? A fashion show is an event put on by a fashion designer to showcase his or her upcoming line of clothing during a Fashion Week. Fashion shows are fun and creative way of highlighting some of the ethical issues surrounding the fashion industry. There is a lot to be considered so it is well worth planning ahead. This is where the latest fashion trends are introduced to the people at large. In a typical fashion show models walk down the ramp dressed in the clothing created by the designer. Fashions shows enjoy a good amount of media coverage which is essential for spreading trends across the globe. History In the 1800s â€Å"fashion parades† periodically took place in Paris couture salons. American retailers imported the concept of the fashion show in the early 1900s. The first American fashion show likely took place in 1903 in the New York City store Ehrlich Brothers. By 1910, large department stores such as Wanamaker’s in New York City and Philadelphia were also staging fashion shows. These events showed couture gowns from Paris or the store’s copies of them; they aimed to demonstrate the owners’ good taste and capture the attention of female shoppers. Magazines like Vogue and Harper’s bazaar, whose editors were obsessed with French fashion began to feature more work by American designers. American designs became the new modern trends and made their place in the industry. Many designers began to hold their own shows in private functions but some shows turned out to be mishaps. Some locations were hazardous like that of Michael Kors show where a part of the ceiling began falling on the models. Mishaps like these made the designers to send the collection to Bryant Park and Fashion Week as we know it today was born. Advantages:- †¢ Fashion shows gave many aspiring designers a platform to show their collection. †¢ It gave opportunity to see the best garments and meet the best international designers. †¢ It helps in introducing new trends and make people aware of them. †¢ It amalgamates different trends and presents an overview of seasonal trend. What brings out the success of these shows? †¢ Careful selection of the theme of fashion show. It should be in sync with the collection that the designer shows. Theme along with collection leaves an important impact on its audience. †¢ Venue that can accommodate many people and one which can efficiently handle a fashion show. It should have good lighting system, backstage area, adequate parking and also easy to find. †¢ Proper display of Collection. It should be appealing and attractive. †¢ Models that effectively and beautifully carry the designs. †¢ Proper advertisement by creating a media buzz. . World’s most talked about & influential Fashion Shows: †¢ Berlin Fashion Week – Berlin, Germany †¢ Haute Couture- Paris, France †¢ Sao Paulo Fashion Week- Sao Paulo, Brazil †¢ Copenhagen Fashion Week- Copenhagen, Denmark †¢ New York Fashion Week- New York, US †¢ London Fashion Week A/W- London, UK †¢ Tokyo Fashion Week A/W- Tokyo, Japan †¢ Milan Fashion Week S/S- Milan, Italy †¢ Paris Fashion Week S/S- Paris, France.

Corporate Finance AIG Accounting Scandal Essay

On February 9th, 2006, the SEC and the Justice Department settled with AIG for an amount in excess of $1. 6B related to alleged improper accounting, bid rigging (defined by Investopedia as a scheme in which businesses collude so that a competing business can secure a contract for goods or services at a pre-determined price), and practices involving workers compensation funds. Both the CEO and CFO of AIG were replaced amidst the scandal. This closure ended a 5-year period, beginning in 2001, which tarnished the 80-year old institution’s reputation that had become the world’s largest reinsurers, and included Buffet’s Berkshire Hathaway as an owner. Several of fraud’s culprits were convicted of Conspiracy, Securities Fraud, False Statements to the SEC, and Mail Fraud. Each offender was handed various degrees of penalties, including jail sentences. AIG’s CEO Hank Greenberg was left unindicted and â€Å"pleading the 5th. What led these executives down a path that would forever change their careers and left many convinced that corporations are willing to go to any extent to satisfy their greed for profits? This paper will examine the intricacies of AIG’s accounting fraud, and discuss the hypothesis that accounting fraud and other unethical decisions focused on short-term profits are positively correlated to long-term value destruction. â€Å"The corporate scandals are getting bigger and bigger. In a speech on Wall Street, President Bush spoke out on corporate responsibility, and he warned executives not to cook the books. Afterwards, Martha Stewart said the correct term was to saute the books. † —Conan O’Brien While there are many techniques to distort the financial condition of a publicly traded company, the most frequent types of improprieties involve revenue recognition, cost or expense recognition, accounting for reserves, and accounting related to business combinations. Below are the laws that Elliot Spitzer’s prosecution based their AIG case on:  §?  §?  §?  §?  §? Using or employing manipulative devices, in connection the purchase or sale of securities Making untrue statement of a material fact or to omit to state that a material fact Engaging in any practice or business which operates or would operate as fraud or deceit Falsification of accounting records and conformity with GAAP Conspiracy of two or more persons to commit offense or to defraud United States What does this mean in layman’s terms? Essentially, AIG improperly accounted for the reinsurance transaction to bolster reserves, and detailed numerous other examples of problematic accounting. PricewaterhouseCoopers LLP, 2009) For example, AIG booked as income $500 million in premium for the loss portfolio transfer and then added $500 million in reserves against future claims to its balance sheet. † AIG counted the transaction as an insurance deal, but later concluded that, â€Å"the Gen Re transaction documentation was improper and, in light of the lack of evidence of risk transfer, the transaction should not have been recorded as insurance. † (Hulburt, Ph. D. , H. , 2005) What turns the deal from mistake to blatant fraud was that no underwriting risk transferred in the deal. Instead, the loss portfolio transfer was effectively a $500 million loan from Gen Re to AIG that AIG would repay through $500 million in claims payments to Gen Re. (Hulburt, Ph. D. , H. , 2005) In the end, AIG’s revised financial statements lowered 2004 net income by $1. 3 billion, or 12%, and reduced 2004 shareholders’ equity by $2. 3 billion, or 3%. Details of the adjustments required 22 pages in the AIG 2004 10K, which was included into the Annual Report to Shareholders. The restatement reduced net income by more than 10% over the 5-year period. (Verschoor, C. , 2005) Ethics is recognition of the difference between what you have a right to do and what is right to do. – Potter Stewart AIG’s culture and lack of ethical controls exemplify how the greed of few can impact the value of many. Some have attempted to use this case as an example to SOX’s failure to overhaul corporate accounting practices. However, in AIG’s first report mandated by the Sarbanes Oxley Act of 2002, a number of material weaknesses in control were disclosed, emphasizing that the first and most extensive weakness was in the ethical culture of AIG or its control environment. The report states verbatim â€Å"Certain of AIG’s controls within its control environment were not effective to prevent certain members of senior management, including the former Chief Executive Officer and former Chief Financial Officer, from having the ability, which in certain instances was utilized, to override certain controls and effect certain transactions and accounting entries. In certain of these instances, such transactions and accounting entries appear to have been largely motivated to achieve desired accounting results and were not properly accounted for in accordance with GAAP. (McGee, S. , 2005) Specific overrides noted resulted in (1) creation of a special purpose entity to improperly convert underwriting losses to investment losses, (2) improper recording of reinsurance transactions, (3) improper â€Å"top level† adjustments and covered call transactions, and (4) unsupported â€Å"top level† adjustment of loss reserves. (Knowledge@Wharton, 2005) â€Å"Leadership is the capacity and will to rally men and women to a common purpose and the character which inspires confidence. † – Bernard Montgomery Tom Lin’s article titled â€Å"The corporate governance of iconic executives. explored corporate governance challenges posed by iconic executives such as Hank Greenberg. To better understand the state of AIG, it is beneficial to discuss the iconic executive that led them to water. Hank Greenberg grew up on a New York dairy farm, joined the U. S. Army during World War II, became an Army Ranger, and stormed the beach at Normandy. He attended the University of Miami and New York Law School, where he earned his LLB. As a captain, he received a Bronze Star in the Korean War; Greenberg then entered the insurance business in 1952. He became the youngest person to be appointed vice president at the Continental Casualty Company. As president of AIG’s major subsidiary American Home Assurance Company, Greenberg was credited with developing substantial reinsurance facilities, which allowed insurers who were forced to take unwanted assignments, or â€Å"bad risks,† the opportunity to reinsure those risks. Greenberg’s strategy enabled American Home to write large quantities of major-risks policies and thus control the pricing of those policies. He established a bottom-line philosophy on underwriting only those companies that made profits. Greenberg’s business was successful, aggressive and profitable. Greenberg would acquire companies that were troubled or fighting off takeovers, buying controlling interests in the companies, and ultimately integrating them into the AIG corporate structure. When AIG’s founder and CEO Cornelius van der Starr died, Green was named to head the company. Two years later AIG went public with Greenberg as the CEO where he would reign with an iron fist, terrorizing underlings, intimidating a compliant board and delivering stunningly impressive earnings for the next 40 years. As Tom Lin described, Iconic executives are complex, bittersweet figures in corporate governance narratives. They are alluring, larger-than-life corporate figures who often govern freely. Iconic executives frequently rule like monarchs over their firms, offering lofty promises to shareholders, directors, and managers under their reign. But like many stories of powerful and influential figures, the narratives of iconic executives also contain adversity and danger resulting from excessive deference, overconfidence, and licentiousness. Lin, T. , 2011) â€Å"Money is like a sixth sense- and you can’t make use of the other five without it† – William Maugham Contemporary economic thought presumes that individuals in a society always act according to their self-interest or private economic incentives, while important ethical motivations for action, such as a concern for others and public interest, are largely ignored. (Kulshreshtha, P. , 2005) As is often the case in ac counting cases, the CFO tends to be a central enabler to the fraudulent activities. There are two primary schools of thought when attempting to understand the incentive for CFO’s to become involved in these ethical dilemmas. The first school of thought states that CFOs may instigate accounting manipulations for immediate personal financial gain. There also has been research indicating that CFO equity incentives are more important than CEO equity incentives in explaining earnings management, measured by accruals and frequency of meeting earnings benchmarks (Feing, M. , 2011). Corporate boards have reduced CFOs’ incentive compensation after passage of the Sarbanes-Oxley Act in an effort to undermine this conduct. Bhagat, Sanjai; Romano, Roberta, 2009) Looking at AIG’s share price over the reporting time frame of these actions, the fraudulent accounting did not seem to have significant impact on its market valuation. Analyzing the share price over the months that AIG reported their annual statement in 2002, 2003, and 2004, AIG’s market share price moved approximately -4%, -3% and . 5% respectively. Although a hypothesis could be made that the fraud occurred as a defense against stock devaluation rather than an enabler of increased valuation. The second thought states that CFOs may become involved in accounting manipulations because of pressure from CEOs. As CFOs’ superiors, CEOs can exert pressure on financial reporting decisions through their influence on CFO’s future opportunities and compensation (Feing, M. , 2011). This aligns to what we understand of Hank Greenberg’s style of management. When the judge handed out sentencing to Elizabeth Monrad, the CFO of Gen Re, he made the following statements.  §?  §?  §? The fact that she did not benefit personally from the scheme, does not excuse her conduct. Her involvement in the fraudulent scheme was â€Å"central to its success. † There were many opportunities for her to shake this shady deal, but she never did†¦ Although these two schools of thought help one to better understand the drivers behind the accounting fraud in AIG and other cases academically, they are not mutually independent. In practice, pressure grows like a virus when it attaches to personal gain. Without personal gain, there is hardly a sustainable environment for pressure, which indicates some level of correlation to realizing a self-centered objective. Some of the best lessons are learned from past mistakes. The error of the past is the wisdom of the future. – Dale Turner One may never be able to understand the full extent of the motivations at AIG that resulted in over $1. 6B in penalties, $2. 3B in reduction of shareholder equity, and the destruction of lives and careers. There appeared to be a significant amount of both pressure and personal gain involved. In the end, the AIG case became another brick in the wall for opponents of capitalism pointing to the greed of executives and their boards. With the benefit of writing this in 2012, we know this was merely a minor speed bump in comparison to what would come for AIG in the future global financial crisis of 2008. We now live in a world where greed, profit, share price, and financial institutions are synonymous to each other. However tarnished the reputation of corporations are, there are glimmers of hope in the details. The numbers and results of these actions begin to illustrate a telling story that greed, fraud, and deception are destroyers of value rather than enablers. Cases such as AIG can be reference points to dissuade future decisions of unethical nature. In AIG’s case, their share price fell more than 30% from the period of 1/2/2001 to 5/22/2006 further strengthening our initial hypothesis. The announcement also caused Standard & Poor’s (MHP) to downgrade AIG’s debt rating from AAA to AA+, leading to higher funding costs and decreased long-term value. We may not be able to prove that all of the AIG’s value destruction is directly related to the case beyond a reasonable doubt, it can be arguably assumed that a significant portion is directly related. Even if that destruction is associated to confidence over financial health. (McGee, S. , 2005) In the time since this case, AIG has made considerable steps to prevent future occurrences of financial misrepresentation. The AIG management report on internal control related remediation efforts emphasizing the need for higher integrity and a culture of ethical values throughout the organization. The report notes: â€Å"AIG has taken, and is developing further plans to take, significant actions to improve its control environment, starting with a clear statement of the tone and philosophy set by its current senior management. The Corporate Governance Committee Report in the 2005 AIG Proxy Statement gives further details: â€Å"AIG enhanced its Code of Conduct for employees, mandated that all employees complete formal ethics training, and implemented a Director, Executive Officer, and Senior Financial Officer Code of Business Conduct and Ethics to provide reasonable assurance that all members of the Board of Directors, executive officers, and senior financial officers adhere to the stated principles and procedures set forth in that Code.  At the Committee’s recommendation, AIG is developing a corporate level compliance framework, including implementation of compliance programs at AIG’s major business areas. â€Å"