Bank Notes Essay

Linear Probability Models (LPMs) * Econometric model to explain repayment experience on past/old loans. * Regression model with a â€Å"dummy† dependent variable Z; Z = 1 default and Z=0 no default. * Weakness: no guarantee that the estimated default probabilities will always lie between 0 and 1 (theoretical flaw) Logit and Probit Models * Developed to overcome weakness of LPM. * Explicitly restrict the estimated range of default probabilities to lie between 0 and 1. * Logit: assumes probability of default to be logistically distributed. Probit: assumes probability of default has a cumulative normal distribution function. Linear Discriminant Analysis * Derived from statistical technique called multivariate analysis. * Divides borrowers into high or low default risk classes. * Altman’s LDM = most famous model developed in the late 1960s. Z < 1. 8 (critical value), there is a high chance of default. * Weaknesses * Only considers two extreme cases (default/no default). * Weights need not be stationary over time. 3. New Credit Risk Evaluation Models Newer models have been developed – use financial theory and financial market data to make inferences about default probabilities. * Most relevant for evaluating loans to larger corporate borrowers. * Area of very active continuing research by FIs. Credit Ratings * Ratings change relatively infrequently – objective of ratings stability. * Only chance when there is reason to believe that a long-term change in the company’s creditworthiness has taken place. * S&P: AAA, AA, A, BBB, BB, B and CCC * Moody’s: Aaa, Aa, A, Baa, Ba, B and Caa Bonds with ratings of BBB and above are considered to be â€Å"investment grade† Estimating Default Probabilities 1. Historical Data * Provided by rating agencies e. g. cumulative average default rates * If a company starts with a: * Good credit rating, default probabilities tend to increase with time. * Poor credit rating, default prob abilities tend to decrease with time. * Default Intensity vs Unconditional Default Probability * Default intensity or hazard rate is the probability of default conditional on no earlier default. * Unconditional default probability is the probability of default as seen at time zero. Default intensities and unconditional default probabilities for a Caa rated company in the third year Supplement point 14 by monitoring a combination of internal reports, prudential reports and market information. 16. Should intervene to require effective and timely remedial action to address liquidity deficiencies. 17. Should communicate with other regulators e. g. central banks – cooperation TOPIC 7: CORE PRINCIPLES OF EFFECTIVE BANKING SUPERVISION Overview * Most important global standard for prudential regulation and supervision. * Endorsed by vast majority of countries. * Provides benchmark against which supervisory regimes can be assessed. * 1995: Mexican and Barings Crises Lyon Summit in 1996 for G7 Leaders. 1997: Document drafted and endorsed at G7 meeting. Final version presented at annual meetings of World Bank and IMF in Hong Kong. * 1998: G-22 endorsed * 2006: Revision of the Core Principles * 2011: Basel Committee mandates a major review, issues revised consultative paper. The Core Principles (2006) * 25 minimum requirements that need to be met for an effective re gulatory system. * May need to be supplemented by other measures. * Seven major groups * Framework for supervisory authority – Principle 1 * Licensing and structure – Principles 2-5 * Prudential regulations and requirements – Principles 6-18 * Methods of ongoing banking supervision – Principles 19-21 * Accounting and disclosure – Principle 22 * Corrective and remedial powers of supervisors – Principle 23 * Consolidated and cross-border banking – Principles 24-25. * Explicitly recognise: * Effective banking supervision is essential for a strong economic environment. * Supervision seeks to ensure banks operate in a safe and sound manner and hold sufficient capital and reserves. * Strong and effective supervision is a public good and critical to financial stability. * While cost of supervision is high, the cost of poor supervision is even higher. Key objective of banking supervision: * Maintain stability and confidence in the financial system * Encourage good corporate governance and enhance market transparency Revised Core Principles (2011) * Core Principles and assessment methodology merged into a single document. * Number of core principles increased to 29. * Takes account of several key trends and developments: * Need to deal with systemically important banks * Macroprudential focus (system-wide) and systemic risk * Effective crisis management, recovery and resolution measures. Sound corporate governance * Greater public disclosure and transparency enhance market discipline. * Two broad groups: 1. Supervisory powers, responsibilities and functions. Focus on effective risk-based supervision, and the need for early intervention and timely supervisory actions. Principles 1-13. 2. Prudential regulations and requirements. Cover supervisory expectations of banks, emphasising the importance of good corporate governance and risk management, as well as compliance with supervisory standards. Supervisory powers, responsibilities and functions 1. Clear responsibilities and objectives for each authority involved. Suitable legal framework. 2. Supervisor has operational independence, transparent processes, sound governance and adequate resources, and is accountable. 3. Cooperation and collaboration with domestic authorities and foreign supervisors. 4. Permissible activities of banks is controlled. 5. Assessment of bank ownership structure and governance. 6. Power to review, reject and impose prudential conditions on any changes in ownership or controlling interests. 7. Power to approve or reject major acquisitions. 8. Forward-looking assessment of the risk profile of banks and banking groups. 9. Uses appropriate range of techniques and tools to implement supervisory approach. 10. Collects, reviews and analyses prudential reports and statistical returns. 11. Early address of unsafe and unsound practices. 12. Supervises banking group on consolidated basis (including globally) 13. Cross-border sharing of information and cooperation. Prudential regulations and requirements 14. Robust corporate governance policies and processes. 15. Banks have a comprehensive risk management process, including recovery plans. 6. Set prudent and appropriate capital adequacy requirements. 17. Banks have an adequate credit risk management process. 18. Banks have adequate policies and processes for the early identification and management of problems assets, and maintain adequate provisions and reserves. 19. Banks have adequate policies re concentration risk. 20. Banks required to enter into any transactions with related pa rties on an arm’s length basis. 21. Banks have adequate policies re country and transfer risk. 22. Banks have an adequate market risk management process. 23. Banks have adequate systems re interest rate risk in the banking book. 24. Set prudent and appropriate liquidity requirements. 25. Banks have an adequate operational risk management framework. 26. Banks have adequate internal controls to establish and maintain a properly controlled operating environment for the conduct of their business. E. g. delegating authority and responsibility, separation of the functions that involve committing the bank. 27. Banks maintain adequate and reliable records, prepare financial statements in accordance with accounting policies etc. 8. Banks regularly publish information on a consolidated and solo basis. 29. Banks have adequate policies and processes e. g. strict customer due diligence. Preconditions for Effective Banking Supervision 1. Provision of sound and sustainable macroeconomic policies. 2. A well established framework for financial stability policy formulation. 3. A well developed public infrastructure 4. A clear framework for crisis managemen t, recovery and resolution 5. An appropriate level of systemic protection (or public safety net) 6. Effective market discipline 001: IMF and World Bank Study on Countries’ Compliance with Core Principles * 32 countries are compliant with 10 or few BCPs * Only 5 countries were assessed as fully compliant with 25 or more of the BCPs. * Developing countries less compliant than advanced economies. * Advanced economies generally possess more robust internal frameworks as defined by the ‘preconditions’ 2008: IMF Study on BCP Compliance * Based on 136 compliance assessments. * Continued work needed on strengthening banking supervision in many jurisdictions, particularly in the area of risk management. More than 40% of countries did not comply with the essential criteria of principles dealing with risk management, consolidated supervision and the abuse of financial services. * More than 30% did not possess the necessary operational independence to perform effective super vision nor have adequate ability to use their formal powers to take corrective action. * On average, countries in Western Europe demonstrated a much higher degree of compliance (above 90%) with BCP than their counterparts in other regions. * Africa and Western Hemisphere weak. Generally, high-income countries reflected a higher degree of compliance. TOPIC 8: CAPITAL ADEQUACY Overview * Adequate capital better able to withstand losses, provide credit through the business cycle and help promote public confidence in banking system. Importance of Capital Adequacy * Absorb unanticipated losses and preserve confidence in the FI * Protect uninsured depositors and other stakeholders * Protect FI insurance funds and taxpayers * Protect deposit insurance owners against increases in insurance premiums * To acquire real investments in order to provide financial services e. . equity financing is very important. Capital Adequacy * Capital too low banks may be unable to absorb high level of losses . * Capital too high banks may not be able to make the most efficient use of their resources. Constraint on credit availability. Pre-1988 * Banks regulated using balance sheet measures e. g. ratio of capital to assets. * Variations between countries re definitions, required ratios and enforcement of regulations. * 1980s: bank leverage increased, OBS derivatives trading increased. * LDC debt = major problem 1988 Basel Capital Accord (Basel I) * G10 agreed to Basel I Only covered credit risk * Capital / risk-adjusted assets > 8% * Tier 1 capital = shareholders equity and retained earnings * Tier 2 capital = additional internal and external resources e. g. loan loss reserves * Tier 1 capital / risk-adjusted assets > 4% * On-balance-sheet assets assigned to one of four categories * 0% – cash and government bonds * 20% – claims on OECD banks * 50% – residential mortgages * 100% – corporate loans, corporate bonds * Off-balance-sheet assets divided into co ntingent or guarantee contracts and FX/IR forward, futures, option and swap contracts. Two step process (i) derive credit equivalent amounts as product of FV and conversion factor then (ii) multiply amount by risk weight. * OBS market contracts or derivative instruments = potential exposure + current exposure. * Potential exposure: credit risk if counterparty defaults in the future. * Current exposure: cost of replacing a derivative securities contract at today’s prices. 1996 Amendment * Implemented in 1998 * Requires banks to measure and hold capital for market risk. * k is a multiplicative factor chosen by regulators (at least 3) VaR is the 99% 10-day value at risk SRC is the specific risk charge Total Capital = 0. 08 x [Credit risk RWA + Market risk RWA] where market risk RWA = 12. 5 x [k x VaR + SRC] Basel II (2004) * Implemented in 2007 * Three pillars 1. New minimum capital requirements for credit and operational risk 2. Supervisory review: more thorough and uniform 3. Market discipline: more disclosure * Only applied to large international banks in US * Implemented by securities companies as well as banks in EU Pillar 1: Minimum Capital Requirements * Credit risk measurement: * Standardised approach (external credit rating based risk weights) * Internal rating based (IRB) Market risk = unchanged * Operational risk: * Basic indicator: 15% of gross income * Standardised: multiplicative factor for income arising from each business line. * Advanced measurement approaches: assess 99. 9% worst case loss over one year. * Total capital = 0. 08 x [Credit risk RWA + market risk RWA + Operational risk RWA] Pillar 2: Supervisory Review * Importance of effective supervisory review of banks’ internal assessments of their overall risks. Pillar 3: Market discipline * Increasing transparency – public disclosure Basel 2. 5 (Implemented 2011) * Stressed VaR for market risk * Incremental risk charge Ensures products such as bonds and derivatives in the trading book have the same capital requirement that they would if they were in the banking book. * Comprehensive risk measure (re credit default correlations) Basel III (2010) * Considerably increase quality and quantity of banks capital * Macroprudential overlay – systemic risk * Allows time for smooth transition to new regime * Core capital only retained earnings and common shares * Reserves increased from 2% to 4. 5% * Capital conservation buffer – 2. 5% of RWA * Countercyclical capital buffer * Tracing/monitoring of liquidity funding Introduction of a maximum leverage ratio Capital Definitions and Requirements * Common equity > 4. 5% of RWA * Tier 1 > 6% of RWA * Phased implementation of capital levels stretching to Jan 1, 2015 * Phased implementation of capital definition stretching to Jan 1, 2018 Microprudential Features * Greater focus on common equity * Loss-absorbing during stress/crisis period capital conservation buffer * Promoting integrated manageme nt of market and counterparty credit risk. * Liquidity standard introduced introduced Jan 1, 2015 Introduced Jan 1, 2018 Available Stable Funding Factors Required Stable Funding Factors Macroprudential Factors * Countercyclical buffer * Acts as a brake in good times of high credit growth and a decompressor to restrict credit during downturns. * Within a range of 0-2. 5% * Left to the discretion of national regulators * Dividends restricted when capital is below required level * Phased in between Jan 1, 2016 – Jan 1, 2019 * Leverage Ratio * Target 3% * Ratio of Tier 1 capital to total exposure > 3% * Introduced on Jan 1, 2018 after a transition period * SIFIs * Required to hold additional loss absorbency capital, ranging from 1-2. 5% in common equity

Destin Brass Products Co.

Problem Statement: Destin Brass president Roland Guidry is concerned with the competitive trends of the company products. He and his staff are worried that company profits are falling in regards to these competitive problems. Analysis: Destin Brass Company manufactures three items dealing with water purification systems: valves, pumps, and flow controllers. The company has been seeing some problems dealing with competition within some of the product markets they produce. Ronald Guidry had two basic questions they wanted answered dealing with this case: 1. Why was it so difficult for the company to stay competitive in the pump market? 2. Why has the company not seen any competition in the flow controller market even with a recent raise in their price to consumers? These questions aroused from Guidry when he realized that the company wasn’t making the standard 35% gross profit margin in pumps. This was the case because the company was forced to reduce the selling price in pumps away from the target price ($97. 10 to $81. 26) due to stiff competition. Management also realized the excessive gross profit margin of 42% in flow controllers even after a recent 12. % increase in price. [pic] The answer to the questions raised by management is directly related to how the company is accounting for their overhead relating to each product. The company had been using a traditional way of allocating overhead. (Exhibit 2) This was a simple and inexpensive way for the company to accomplish this task. However, it really didn’t accurately assign overhead to each product. Destin realized this and had it controller, Peggy Alford, design a revised way for allocating overhead. Exhibit 3) This revised system didn’t seem to answer any questions or alleviate any problems that Destin was having. Activity Based Costing (ABC) was another possibility to allocate overhead and helps answer the questions above. (Exhibit 4) Traditional Cost system: The traditional cost system that was currently being used was a fairly inexpensive way for the company to allocate overhead cost. This system was used to generate a standard unit cost that was then used to produce a target selling price based on the 35% profit margin set by the company. The structure used to assign overhead to each product to arrive at a standard cost was a very inappropriate method for the company to use. There are a number of reasons that this way was inappropriate. First, the only way overhead is allocated using this system is by assigning overhead to production to each product on the basis of production-run labor costs. [pic] The table above shows how the overhead rate was generated for use in the traditional cost system. Using this rate it allocates $4. 39 of overhead for every $1. 00 of run labor used in the product which the labor was applied. This per unit overhead rate is then added with a material and direct labor per unit cost. Adding these three cost up will give you the standard unit cost for producing each product. (Exhibit 2) This system basis all overhead on labor and therefore is not a very accurate way to distribute overhead cost to each product. Take for instance the flow controllers which have a labor usage of . 40 hours per unit. Using the overhead rate above of 439%, overhead allocated to each flow controller is $28. 10. This only takes into account direct labor and nothing else. This creates a problem because even though Flow Controllers take . 40 hours to produce they only use . 20 hours of machine usage. Compare this machine usage to . 50 machine hours to produce each valve which uses . 25 labor hours and . 50 hours to produce each pump which uses . 50 labor hours. This shows that flow controllers are incurring more cost then needed when dealing with machine usage. This problem of over allocating overhead to certain products is also true when dealing with machine depreciation. Machine depreciation accounts for $270,000 of the total overhead, a large percentage. With the overhead rate being determined by labor using this traditional system, machine depreciation is being determined by how much labor is being used to produce each product. In reality machine depreciation should be allocated to overhead using how many machine hour it took to produce each product. With 4,000 flow controllers being produced at a machine usage of . 20 hours they accounts for 800 total machine hours. This number is very small in comparison to valves and pumps which take 3,750 and 6,250 total machine hours to produce, respectively. This means that flow controllers should be allocated less machine deprecation overhead due to the relative small number of total machine hours used. However, since the overhead rate is only calculated using labor in the traditional system Flow controllers are being over allocated. The table below shows how much machine depreciation is being allocated to overhead using the traditional method based on labor hours. [pic] The table below shows what machine depreciation would be if it were calculated using the number of machine hours used produce each product line. [pic] Based on the previous two tables allocating machine depreciation based on direct labor hours can give the company a false cost on how much it cost to produce each unit of a particular product. Pumps are being allocated $19,350 ($175,600-$156,250) too much machine depreciation. With the company producing 12,500 pumps that’s a per unit over charge of $1. 55. While this is only showing the differences in machine depreciation, the other overhead cost associated with Destin producing it products also vary. With these overhead cost being miss-allocated for, there is the potential for Destin to be using bad data to price its products. This could help explain the competition problem the company is facing and will be discussed later in the paper. A second way that this traditional cost system is inappropriate for Destin to use is because it only gives the company one option in dealing with a price change. Since all overhead is figured using direct labor hours if Destin wanted to change it cost associated with overhead, then the only way would be to change the direct labor dollars. This severally limits the company by having only one â€Å"pool† to change prices. Revised Unit Cost System: Destin Brass Products controller Peggy Alford put together a revised cost allocating system in an attempt to better allocate overhead based on activities. This system separates material related overhead and labor related overhead and determines corresponding rates to plug into your unit costs. (Exhibit 3) The table below shows the separation of the two types of overhead used in the revised method. [pic] The revised system is better than the standard system that Destin Brass currently uses to allocate overhead. It takes into account the problem in the standard system which based all allocation of overhead only from direct abor dollars. In correcting this problem the revised structure now takes into account material related overhead which has no relationship to the labor costs of machining. While this dilemma was corrected in the revised system other problems aroused questioning the accuracy of the system allocating overhead to the right products. When looking at the â€Å"other overh ead† section in the table above packing and shipping overhead is included. This creates a problem when the overhead rate for this group of cost is determined using machine hours. Let’s use flow controllers again to better understand the problem that is created. In the revised cost system all overhead not dealing with materials is allocated to products using $42. 59 per machine hour used. With flow controllers taking . 20 hours of machine time to produce the â€Å"other overhead† is assigned to the standard cost at $8. 52 per unit. With valves and pumps both using machine time of . 50 hours to produce each unit, this systems creates an advantage for the flow controllers. Although flow controllers use less machine time they require more shipping and packing cost. Flow controllers require a total of 22 shipments to its customers compared to only seven for pumps and one for valves. With this being true the majority of the $60,000 assigned to packing and shipping overhead should be allocated as cost to flow controllers. Despite this fact the allocation can’t be done because of how overhead is assigned based machine hours used. The following table shows the current overhead assigned to packing and shipping based on the revised system of using machine hours as the basis for overhead allocation. [pic] The next table shows what packing and shipping overhead would be based on a percentage of total shipments company wide. [pic] The second way shown is the better way to allocate overhead based on packing and shipping costs because it takes into account how many shipments and necessary of each product line. Looking at flow controllers again you can see that this product line requires 22 of the 30 shipments. This is a cost of $44,000 that is directly related to the flow controllers. With the current revised system represented in the first table, flow controllers only were allocated $4,430. 0 of cost associated with packing and shipping. This is only 10. 1% of the cost that should be allocated. With this Revised System for costs Destin Brass would still be using bad data to set prices of it products. This could be one possible answer to the questions asked in the beginning by the company. Another problem that arises if this revised system is put into place is one that is similar to the p revious problem. Destin Brass manufacturing manger John Scott is quoted in the case as saying â€Å"(the company) probably spends one-half of our engineering effort on flow controllers. If this is the case, then like before flow controllers aren’t being allocated enough overhead with regards to engineering cost. This is shown in the following two tables. The table on the left shows the amount of engineering overhead being currently allocated to flow controllers. The table on the right shows what the allocation of engineering cost should be to flow controllers based on the estimated number of 50% of total engineering. [pic] [pic] This again is another possible reason for the competition and price problems that Destin Brass is facing. Both of the above methods really restrict the company from implanting changes in price and/or cost. The methods have few â€Å"pools† for management to implement changes using and result gives poor data. A System with the possibilities to implement changes easily is activity based costing. Activity Based Costing A system that would benefit Destin Brass greatly would be to implement activity based coasting as a means to allocate the overhead costs associated with its products. This method traces the costs of resources to the activities consumed. The problem identified in the two previous systems would all be eliminated if ABC where used at Destin. The ABC method is used by applying all direct cost (direct labor and materials) towards the product coast based on the coast summary. (Exhibit 1) Indirect cost (Indirect labor and materials and depreciation) are then applied to each product at a rate that set by the amount of the activity used to produce the good. The amounts used in this case are estimated based on how many transactions occur in total and are caused by each product. Exhibit 5) This way of allocating overhead better illustrates how much cost goes into each product based on the amount of components and runs is needed to complete each product. With this being true flow controllers now have representation to the cost being occurred and the overhead allocated to them. Flow controllers numbers are now more accurate because of the fact the all transactions needed to complete the product are used in generating an allocati on rate. Each flow controller is made up of 10 components and that are being produced in 10 runs. This will account for the company to have 100 transactions (10Ãâ€"10) in order to produce the good. The numbers that Destin came up with using this method are shown in Exhibit 4. With each overhead cost being rated by itself for each product, the company has better data to make sound decisions with. They also have better control on implementing changes. As with the previous methods management could only change labor or machine hours to effectively change coast. With the ABC method each cost is rated separately and therefore a change to a cost would be easily done. When comparing the product unit coast obtained from the three methods discussed in this paper, the companies’ problems dealing with competition and price are easily reasoned with. The following table shows these unit costs for each product line using each of the three methods: This comparison table shows that Destin Brass was allocating its overhead in a way that gave decision makers faulty data. By looking at the numbers obtained using the ABC method and comparing them to the two other methods answers to the two questions raised by the president can be answered. The first question of why was it so difficult for the company to stay competitive in the pump market is explained by the above chart. Destin had believed its production cost for pumps to be $63. 12. With this being said when Destin had to lower their price due to stiff competition the company felt they were no longer going to be able to obtain the desired 35% profit margin. However if Destin new the true cost of producing each pump unit was $37. 70 then lowing the price to stay competitive would have been no longer and issue because the company would still be over the 35% mark. The second question raised by management at Destin Brass dealing with why the company has not seen any competition in the flow controller market is also easily answered using the above table. Destin believed that its standard unit cost for producing flow controllers was $56. 50. Using this cost number the company set a target selling price of $86. 96 to obtain the desired 35% profit margin for the company. When potential competitors looked at this price they felt there was no way they could make a profit in this product line. The potential competitors most likely had a cost of producing a flow controller some where around the price we obtained using the ABC method of $100. 91. Even when Destin raised the price of flow controllers by 12. 5% to $97. 07 competitors would still not want to enter the market based on our selling price. These questions are also easily answered by looking at the following table which take the unit cost obtained using the ABC method and comparing them with last months selling prices: This table shows that the flow controllers were priced to low based our current cost. The company would have incurred a loss of 4% gross margin if this were the unit cost we used last month. Again this shows why now competition was forming because any other company using the ABS method would incur a loss as well. If Destin where however to make a 35% margin at its new unit cost of $100. 91 it would need to sell the flow controllers at $155. 25. This increase in price might fuel some competition. Potential competitors might see this new price Destin is selling at and feel it is a favorable market to get into now competition can sell above their production cost. Pumps are also easily analyzed using this table. Now that the company has an ABC unit cost of $48. 79 they can better compete in the price wars the take place in the pump market. At the price Destin was selling pumps at last month of $81. 26 the company would now be making a 40% gross margin using the ABC cost. This leaves Destin the option of lowering the price in pumps $75. 06 in order to stay competitive and maintain market share. At this price Destin would still be making the company desired 35% profit margin. Net income would not change in the flowing month if the ABC method were to be implemented. This is assuming there are no changes in production, sales, or costs. This is strictly saying that the way you account for overhead as no impact on net income. The ABC method total overhead costs, it only changes how those costs are allocated for internal purposes. With this information shown the ABC method for allocating overhead to products is far superior to anything Destin Brass had used before. The ABC method takes into account all overhead cost and the components involved in each product. In summary a company’s profitability of a product depends on the allocation rules used internally. Recommendations: I would recommend to Destin Brass president Roland Guidry to implement the ABC method for allocating overhead. This method alleviates the two problems he had at the beginning of the case dealing with the question of competition and price. The ABC method will also let Mr. Guidry better control his cost and prices by providing him with a way that’s easier and more effective. I would recommend to Mr. Guidry that he lower the price of the pumps in order to remain competitive in that market. He should lower pump prices as long as he stays at or above the 35% gross margin he wants. I would also recommend that he slowly raise the prices of flow controllers. With the unit cost a lot higher than where it was this price needs to raise and try to obtain the 35% margin. Mr. Guidry should keep a close eye on the competition in this market. As the price is increase potential competitors might enter the market. He should raise the price for flow controllers as long as competition stays to a minimal to retain the market share Destin has already obtained. [pic] [pic] [pic] [pic] [pic]

Mohammed Morsi Essay

The Muslim Brotherhood’s Mohammed Morsi has become Egypt’s first freely elected president after a delayed announcement of the results of last weekend’s runoff. He beat former Prime Minister Ahmed Shafiq by more than almost 900,000 votes. Morsi secured 51.7% of the vote, compared to 48% for Shafiq. Mohammed Morsi heads the Freedom and Justice Party (FJP), the Muslim Brotherhood’s political arm. Mubarak appointed Shafik as prime minister in response to the protests against his regime. Shafik resigned a little more than a month later amid protests decrying him as a holdover from a discredited, ousted regime. Supports the Supreme Council of the Armed Forces (SCAF): â€Å"SCAF is serious about power handover and is seeking to achieve the goals of the revolution. SCAF stands at an equal distance from all political and religious powers.† Parliamentary elections: the Muslim Brotherhood’s Freedom and Justice party seems set to emerge as the biggest winner, with some analysts estimating it will capture about 40% of seats in the new legislature. Al-Nour, a more conservative Salafist party, looks likely to secure second place. The Muslim Brotherhood (known in Arabic as al-Ikhwan al-Muslimeen) is Egypt’s oldest and largest Islamist organization. As the most organized opposition group following the ouster of former President Hosni Mubarak in 2011, the Brotherhood became the country’s dominant political force, winning a near majority of seats in the post-revolution parliament, and its candidate, Mohammed Morsi, winning the presidency. Some Egyptians are concerned over the group’s aim to establish a state ruled by sharia, or Islamic law, and ambiguity over its respect for human rights. Such concerns intensified after Morsi announced new sweeping powers for the presidency in late 2012 and a draft of theproposed constitution was published. The domestic political challenges also provide a difficult road for U.S.-Egypt relations, especially with regards to foreign aid. The Freedom and Justice Party (FJP), the political party of the Muslim Brotherhood, could not have come into being without the 25 January revolution. Up to that time, the Muslim Brotherhood (MB), Egypt’s most powerful Islamist organization, was not only denied the right to form parties, but also barred – at least legally – from political life. As a result, the group had to pay a heavy price in detentions and repression to practice politics under the rule of former President Hosni Mubarak. The group had been trying to get a foothold in the country’s political arena for decades but was met with entrenched opposition by the Mubarak regime, which tended to accommodate the Brotherhood, but only within strict limits. Now, after the 25 January uprising, the group’s political ambitions have resurged on an unprecedented scale. Officially founded in May 2011, the FJP says that it is committed to a modern state, democracy, women’s rights, and national unity. The FJP’s initial membership of nearly nine thousand included one thousand women and one hundred Copts. New members are subject to a probationary period of six months after which, and based on their performance record, they become eligible for permanent membership. The FJP—along with the Salafist Al-Nour—is among a very few Egyptian political parties that issue probationary membership Formed alliance with name of Democratic Alliance (Freedom and Justice) Al-Nour Party Established in the wake of the 25 January uprising, Al-Nour (â€Å"The Light†) Party is the largest of Egypt’s three licensed Salafist parties (the other two being Al-Asala and Al-Fadila Parties). It was established by Al-Da‘wa Al-Salafiyya (â€Å"The Salafist Call†), Egypt’s largest Salafist group, commonly known as Al-Daawa Movement. Al-Daawa started in Alexandria where it now enjoys a considerable following. Al-Nour Party was officially licensed in June 2011. Official registration is of paramount importance in Egypt at the present time, as the current election law limits the right to contest two-thirds of the seats of the upcoming parliament to a limited number of officially registered parties, including Al-Nour. Under the rule of former President Hosni Mubarak, the state generally did not allow for the formation of Islamist parties, but after the revolution many Islamist groups managed  to obtain official political party license. The Islamist Bloc is an electoral coalition formed by three Islamist political parties with the aim to integrate their efforts in the upcoming parliamentary elections. The Islamist Bloc is comprised of the Salafist Al-Nour and Al-Asala Parties, as well as the Building and Development Party, the latter of which was founded by the Islamic Group (Al-Gamaa Al-Islamiya). Wafad party: Wafd Party is one of Egypt’s oldest liberal parties and is expected to play a significant role in the upcoming elections. With deposed President Hosni Mubarak’s ruling party officially disbanded, Wafd has emerged as an influential player in the political arena. The party commands the largest network that any political party in Egypt possesses today, covering major cities in twenty-four out of twenty-six Egyptian governorates. With a distinguished group of top Egyptian businessmen on its membership list, Al-Wafd stands out as one of the few established parties that do not face the same financial constraints that have historically challenged many of the country’s political parties. The party also enjoys a very strong presence in the media, thanks to its famous daily newspaper, its Internet portal, and a professional, well-equipped media department. Additionally, Wafd’s current leader Al-Sayed Al-Badawi is owner of Al-Hayat, one of Egypt’s top five television channels. Such are luxuries that very few Egyptian parties possess. Wafd’s history dates back to the beginning of party life under the monarchy, making it the oldest among existing Egyptian political parties. The name of the party is Arabic for â€Å"The Delegation,† and it references Saad Zaghloul’s attempt in 1919 to lead a popular delegation to the post-World War I Paris Peace Conference to demand independence for Egypt against the will of British occupation authorities. Threatened by the immense popular support that Zaghloul was able to garner for his mission, British authorities exiled the Egyptian nationalist leader along with members of the prospective delegation to Malta. This move instigated a mass uprising, which led to the 1919 Revolution. The Egyptian Bloc: The Egyptian Bloc consists of the Free Egyptians Party, the Egyptian Social Democratic Party and Al-Tagammu Party. The Bloc is often portrayed as a â€Å"secular-leaning† alliance that seeks to counterbalance the influence of the Muslim Brotherhoodin the upcoming elections, specifically the Brotherhood led Democratic Alliance’s electoral coalition. Members of the Bloc announced in early November that their partnership is not simply a short-term electoral coalition, but encompasses a long-term political alliance aimed at turning Egypt into a civil democratic state. Magdi Abdelhad:iMiddle East analyst The Islamists’ rise to power in Egypt will send shockwaves through the courts and palaces of conservative Arab kings and presidents who have tried for decades to put the lid on political Islam. But foremost among Egypt’s neighbours who watched the brotherhood’s success with increasing alarm is Israel. Cairo was the first Arab state to sign a peace treaty with Israel and the brotherhood has traditionally been vehemently opposed to that. But its opposition has softened over the years – at least publicly. It is widely believed that the Muslim Brotherhood have reassured Washington that an Islamist government in Egypt would respect the peace deal with Israel. Given also that the ruling military council will continue to have the final say on matters of war and peace, it is unlikely that the brotherhood can put that peace at risk. It is also more likely that Mr Mursi’s immediate priority will be to concentrate on Egypt’s many daunting domestic problems including rampant poverty and unemployment. Debating leaders: http://www.nytimes.com/2012/05/21/opinion/21iht-edzewail21.html?pagewanted=all From the time of Ramses II, the strong pharaoh who ruled Egypt thousands of years ago, until last year when Hosni Mubarak’s reign ended, Egyptians were never able to witness a debate over who should take over the democratic reins in the highest office of the land. Our new culture of debate, together with the election of the Parliament last December, are milestones in the history of the nation, paving a new, but rocky, path toward democracy. The open debate between the secular and religious orientations of politics was  unthinkable over the past 60 years. This new openness means the Egyptian body politic is maturing. In the end, Egyptians know that, for the first time, they can choose their future. It won’t be dictated or imposed by anyone. Army protected revo: Unlike in nearby Syria or earlier in Libya, the Egyptian Army has taken the high road and protected the revolution in its infancy. And it has been the guardian of these unprecedented transparent elections. Problems: Among the most serious problems are economic hardship, the uncertainty of the political climate and the deterioration of security — a feature that Egyptian society faces anew. These problems have been compounded over the past 15 months as each of the three main constituencies involved in the revolution — the Supreme Council of the Armed Forces (SCAF), which is in charge of the transition period; the politically liberal as well as Islamic-oriented parties; and the youth who triggered the uprising — have stumbled in one way or another. Little bloodshed: It is a hopeful sign indeed that we Egyptians are still marching forward toward democracy with relatively little bloodshed. All signs indicate that a counterrevolution is not in store for Egypt. We will not turn back to a totalitarian governing system. Perhaps the most encouraging of all is the confidence of Egyptians in their future. In Egypt, a Victory for Democracy but Fear for the Future: http://www.businessweek.com/articles/2012-06-25/in-egypt-a-victory-for-democracy-but-fear-for-the-future â€Å"So many questions remain unanswered that what can best be said is that either SCAF and the Brotherhood have worked out a deal of some sort or the political jousting has only just begun,† wrote Issandr El Amrani, a popular blogger on Egyptian politics. â€Å"Both the Brothers and  SCAF have positioned themselves in a manner in which backing down from their respective positions on the question of parliament and the Supplemental Constitutional Declaration would be a loss of face.† Tensions ran high for two weeks, when the SCAF assumed legislative responsibilities after shutting down the Islamist-controlled Parliament, announced a Supplemental Constitutional Declaration that drastically reduced presidential powers, and gave themselves the ability to veto articles of drafts of Egypt’s new constitution. They also reintroduced martial law, allowing soldiers to arrest civilians. Critics called their actions a soft coup. The Muslim Brotherhood, the most powerful political player in Egypt, has on the surface refused to accept any of these decisions, staging a sit-in in Tahrir Square and issuing aggressive statements to the media, all the while vowing to pressure the military government to rescind their declarations. It was a rare move, as the pragmatic group is more generally known for cutting deals with the regime rather than going toe-to-toe. Last week, with the possibility of a victory by Ahmed Shafiq, the other candidate in the run-off election who is widely viewed as aligned with the military, the Brotherhood showed a willingness to work with the revolutionary groups it had mostly ignored since the uprising against Mubarak. Morsi pledged to form a national salvation government to include secular politicians, Christians, and women. â€Å"The big question is: Can they build a broader, more inclusive front that can effectively challenge SCAF’s grip on power?† asks Shadi Hamid, director of research at the Brookings Doha Center. â€Å"Now that fear [of Shafiq’s victory] has passed, is there still enough that binds [the opposition groups] together? I do think the Brotherhood has at least implicitly acknowledged the mistakes of recent months and they have tried to strike a more conciliatory tone, and the recognition that they can’t do this alone because they are fighting a very challenging adversary: SCAF and the old regime.† To add to the challenges of running a country with a crumbling economy, President Morsi won with a narrow margin, garnering 51.7 percent of the vote. He had promised to be the president of all Egyptians during his first address to the nation Sunday night . â€Å"The game was being played almost like a game of poker on both sides,† says Hani Shukrallah, managing editor of the English-language online version of the Al Ahramnewspaper. â€Å"If we have reached a compromise, that’s a bit helpful for healing the deep schisms  [within] society. We have a society that’s been split down the middle, with enormous polarization. Most of the people who voted for Morsi did so out of dread [of] Shafiq.† On a side street leading to Tahrir Square on Sunday night, Ehab El Shawi led his three children to the epicenter of the celebration in the birthplace of Egypt’s uprising. Like many, he was caught between rejoicing at the idea of a new president and the reality of the office’s lack of power. â€Å"This is the first time all Egyptian people made a choice in 7,000 years to elect a normal Egyptian citizen. This is the first time we have freedom in more than 60 years,† El Shawi said happily of the first non-military president in Egypt’s history. â€Å"But we have to change all the decisions taken during the presidential elections and force the powers to ensure Dr.Morsi will have all the power to make Egypt a modern country,† he added. â€Å"We still need to take Egypt back from the old regime. †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Timeline: Anti-Mubarak protests 2010 February – Former UN nuclear chief Mohammed ElBaradei returns to Egypt and, together with opposition figures and activists, forms a coalition for political change. ElBaradei says he might run in presidential election scheduled for 2011. 2010 March – President Mubarak undergoes gall-bladder surgery in Germany, returning to Egypt three weeks later. 2010 June – Muslim Brotherhood fails to win any seats in elections to the Shura consultative upper house of parliament; alleges vote was rigged. 2010 November – Coptic Christians clash with police in Giza over construction of church. Parliamentary polls, followed by protests against alleged vote rigging. Muslim Brotherhood fails to win a single seat, though it held a fifth of the places in the last parliament. 2011 January – 21 killed in bomb at church in Alexandria where Christians had gathered to mark the New Year. Anti-government demonstrations, apparently encouraged by Tunisian street protests whic h prompted sudden departure of President Ben Ali. President Mubarak reshuffles his cabinet but fails to placate demonstrators, whose calls for his resignation grow louder. Days later he promises to step down in September. 2011 February – President Mubarak steps down and hands power  to the army council. 2011 March – Egyptians approve package of constitutional reforms aimed at paving the way for new elections. 2011 April – Former President Mubarak and his sons, Ala and Gamal, are arrested on suspicion of corruption. 2011 April-August – Protests continue in Cairo’s Tahrir Square over slow pace of political change. Islamist groups come to the fore. Army finally disperses protestors in August. 2011 August – Former President Mubarak goes on trial in Cairo, charged with ordering the killing of demonstrators earlier in the year. 2011 October – Clashes between Coptic Christians and security forces kill 24 people. Egypt and Israel swap 25 Egyptians in Israeli custody for a US-Israeli citizen accused of spying. 2011 November – Violence in Cairo’s Tahrir square as security forces clash with protesters accusing the military of trying to keep their grip on power. Prime Minister EssamSharaf resigns in response to the unrest. Start of parliamentary elections. 2011 December – National unity government headed by new Prime Minister Kamal al-Ganzouri takes office. 2012 January – Islamist parties emerge as victors of drawn-out parliamentary elections. 2012 March – Pope Shenouda III, the veteran head of the Coptic Church, dies. 2012 April – Crisis in relations with Saudi Arabia over the Saudi detention of an Egyptian lawyer briefly threatens the substantial aid that the Saudis provide Egypt. First free presidential poll 2012 May – Muslim Brotherhood candidate Mohammed Mursi tops the first round of voting in first free presidential elections, narrowly ahead of Mubarak-era prime minister Ahmed Shafiq. Official media put turnout at a low 43%. Military leaders announce the end of the state of emergency in place since Anwar al-Sadat’s assassination in 1981, as its last renewal expires. 2012 June – Muslim Brotherhood candidate Mohammed Mursi narrowly wins presidential election.Armyvs civilian rule Court sentences ex-President Mubarak to life in prison for complicity in the killing of protesters during the 2011 uprising. 2012 July – President Mursi submits to a Supreme Court ruling that the parliamentary elections were invalid, after initially ordering parliament to meet in defiance of a military decree dissolving it in June. 2012 August – New prime ministerHishamQandil appoints a cabinet dominated by figures from the outgoing government, technocrats and Islamists, to the exclusion of secular parties. Islamist fighters attack an  army outpost in Sinai, killing 16 soldiers, and mount a brief incursion into Israel, highlighting the tenuousness of government control over the largely-lawless area. President Mursi dismisses Defence Minister Tantawi and Chief of Staff Sami Annan and strips military of say in legislation and drafting the new constitution. 2012 September – Egypt kills 32 militants and destroys 31 smuggling tunnels to Gaza in an offensive against militants who attacked troops in Sinai in August. 2012 November – Bishop Tawadros is chosen as the new pope of Egypt’s Coptic Christians. President Mursi issues a decree giving himself extensive new powers. The decree sparks angry demonstrations and is condemned by Egypt’s top judges, who accuse him of undermining the independence of the judiciary. The Islamist-dominated constituent assembly tasked with writing a new constitution approves all 234 articles of the draft constitution, which boosts the role of Islam in Egypt’s system of government. The assembly session is boycotted by liberal, left-wing and Christian members. The vote is held earlier than originally scheduled, after Egypt’s constitutional court threatened to dissolve the constituent assembly. http://www.bbc.co.uk/news/world-africa-13315719 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ http://www.brookings.edu/research/reports/2012/01/23-egypt-indyk Prospects for Democracy in Egypt: There’s a conventional wisdom in the United States that Arabs are incapable of sustaining a true Western-style, liberal democracy. It will take them hundreds of years to acquire a â€Å"democratic culture,† the argument goes. And in the meantime new authoritarian regimes — either Islamist or military — will replace the ones that have been overthrown in the past year and give us all a lesson in â€Å"Arab democracy.† Advocates of this view were the first to announce, with all-knowing smiles, that the Arab Spring had become an Arab Winter. When Islamist parties won free and mostly fair elections in Tunisia, Egypt and Morocco in recent months, the proponents of this view had an â€Å"I told you so† moment and they were quick to denounce anybody who said otherwise as hopelessly naive. After a prolonged hibernation, politics has broken out in Cairo, the capital of the Arab Awakenings. For the first time in six decades people are acquiring a taste for freedom and, yes, Western-style democratic politics. The issues they debate so vigorously are critical to the shape of Egypt’s democratic future: What will be the residual powers of the Egyptian military? What’s the best model for dividing powers between the Presidency and the Parliament? What revisions should be made to the Constitution to ensure democratic rule? At the same time, the newly-elected parties are busy engaging in the horse-trading necessary to coalition politics, since no one party gained a majority (the Muslim Brotherhood’s Freedom and Justice Party won around 47 percent of the vote; the Salafi Al-Nour Party won 25 percent, and a variety of liberal parties won the rest.). We were treated to an amazing sight: Salafi religious purists attempting to negotiate an alliance with liberal secularists. How did they justify such a pragmatic deal? The enemy of my enemy is my friend, one of them explained to us. They can both agree on a short-term political agenda: countering the influence of the Muslim Brotherhood and getting the army out of politics. And what about the imposition of Sharia law? The leader of the Salafi Al-Nour Party noted that his party is comfortable with the conservative nature of Egyptian society so a campaign to impose sharia law is unnecessary. They can be satisfied (at least for the time being) with the existing language of Article 2 of the Constitution which states that the â€Å"principles† of Islamic shariah will guide the state. This kind of pragmatic politics is deeply disturbing to the â€Å"Costa Salafis† — a young generation of Salafis whose makeshift headquarters is in a Costa cafe. They denounce their elders not so much for being willing to compromise, which they readily accept as part of the new politics, but of failing to articulate through â€Å"fatwas† the religious basis for those compromises. It’s as if the Salafi leadership, propelled onto the political stage for the first time, has become unplugged and feels able to do whatever is necessary in the political realm to protect its community of social  conservatives. They reminded me of the religious parties in Israel! Meanwhile, the Muslim Brotherhood is busy making its own compromises with the military and with other liberal parties that would enable its Freedom and Justice Party to build a governing and empowered coalition (at the moment, they can control the parliament but until its powers are defined in the constitution and the military hands over power, they cannot control the government). Whereas the Salafis are looking to constrain the Muslim Brotherhood, the MB is focused on how to ease fears of its intentions. After operating for eighty years in the political wilderness, the MB has learned just how fragile this moment could turn out to be. That’s why its leadership is more willing to compromise with the military than the other parties to its left and right. Consequently, the other parties fear that the MB will sell them out to the military in some sweetheart deal that compromises the revolution and their abilities to use democratic rules of the game to constrain the MB and hold the military accountable. This tension will likely manifest itself in the massive demonstrations that are expected on January 25 in Tahrir Square to commemorate the first anniversary of the Revolution. The military and the MB have called for a celebration, complete with party balloons and patriotic songs. Youth activists and some liberal parties, particularly exercised by the eighty some demonstrators who were killed by the police and the army in crackdowns in November and December last year, are calling for a demonstration against military rule. Some of the far-left revolutionary youth are calling for a campaign of violence. The way the January 25 demonstrations play out will be only one of the ways in which â€Å"square politics† and â€Å"party politics† interact in Egypt’s newly dynamic democracy. All the parties feel that they can claim legitimacy from the people’s mandates that they have received in the elections. This empowers them to stand up to the military in demanding that it leave the political arena promptly and allow Egyptian democracy to have its day. If the military focuses only on protecting its narrow interests (e.g., retaining its business interests, claiming immunity from prosecution for  past actions, demanding only responsibility for protecting the state’s borders), then a reasonable compromise can be fashioned. However, if the military insists on specifying reserve powers in the constitution and protecting its budget from civilian oversight, then the people know the way back to Tahrir Square. As one newly-elected parliamentarian put it: â€Å"We are legitimate now; the army is not.† And what about the Israel-Egypt Peace Treaty? We didn’t raise the issue — they did. It came up in most conversations in the following way: â€Å"We have been elected by the people. We’re responsible to them. The people want stability, above all. They want the police back in the streets and calm and predictability restored to their daily lives. We don’t like the way Israel treats the Palestinians. We don’t like the price that Israel pays for Egyptian gas. But we’re not going to mess with the peace treaty.† That sentiment is so widely shared that one of the heads of the Muslim Brotherhood could declare to the New York Times last week that the peace treaty is a â€Å"commitment of the state,† and therefore will be respected. The sense of responsibility that rests on the shoulders of those who would govern 87 million people is palpable. They know the severe economic straits that they will have to confront. They know that neither tourists nor foreign investment will return to Egypt unless there is a clear commitment to stability. And they know the people will not forgive them if they fail to address their basic needs for order, jobs and housing. In short, newly-elected Egyptian politicians — the Muslim Brotherhood first and foremost — understand that they have to make a choice between feeding the people and fighting Israel, and for the time being they have made a conscious choice of bread over bombs. The fact that Palestine is not a priority for the Egyptian people has been manifest since the early days of the revolution. It was underscored for me during a lecture I gave at the American University in Cairo, just off Tahrir Square. A Palestinian student, draped in a Palestinian flag, stood with a makeshift banner in silent protest at the front of the hall. Despite this prominent reminder, during the ensuing ninety-minute Q&A session with  students and journalists no-one asked a question about Palestine. To be sure, there’s always the risk that populist politicians will outbid each other in their demagoguery on the Palestinian issue, especially if Israeli-Palestinian violence flares. But Israel is particularly sensitive to this possibility and the Muslim Brotherhood is apparently signaling its Hamas branch to keep things quiet too. (With 350 trucks a day passing from Israel into Gaza, and smuggling of weapons through the tunnels continuing apace, Hamas has its own reasons for maintaining the current de facto ceasefire with Israel.) What was perhaps most striking to me, however, was the attitude of the new political class to the United States. I had expected to encounter hostility — after all the United States had been Mubarak’s staunch ally through the three decades of his Pharaohnic rule. I had assumed that the Islamist politicians in particular would be antagonistic towards American influence in post-revolutionary Egypt, just as the Iranian clerics have manifested intense antagonism towards the United States since their revolution. Yet Egypt’s Islamists all seemed keen to engage with the United States government. The Muslim Brotherhood was trying to understand President Obama’s intentions in demanding that the military hand over power to civilian (i.e. Muslim Brotherhood) rule, â€Å"expeditiously.† They weren’t sure how to deal with the fact that Bill Burns, the Deputy Secretary of State, had just met with their leadership. But one thing they were very certain about — they need U.S. economic assistance and U.S. help in mobilizing international assistance. They were therefore quite anxious to know how Congress would treat them. Because of this new U.S. Government engagement with their arch-rivals, the Salafis too are seeking American recognition. Their leaders are keen to come to Washington to explain their intentions. They even appear willing to engage with Israel to establish their bona fides — one of their leaders recently gave an interview to Israeli Army Radio.

Dismissal Meeting Research Paper Example | Topics and Well Written Essays - 2000 words

Dismissal Meeting - Research Paper Example ination or dismissal is inevitability despite how strong the firms’ recruiting, performance management, management practices as well as hiring effectively be. Dismissal of the employees results from behavioral misconduct such as theft, violation of standards of conduct and/ or policies, changes in business such as lack of work, new markets and contract ending as well as performance issues. It is importance to note that, before settling down to conduct a dismissal meeting, a firm should first consult with a counsel from an employment attorney to ascertain non-exposure to litigation. As noted by Martin Yate’s â€Å"Keeping the Best†, a firm that fails to strip-off chronic poor performers, is viewed by the best performers employees as having condoned lackluster performance and/or it fails to recognize the difference as the best performers will always long for associating themselves to the best (Yate, 1991, p. 65). It is therefore key for both small and large firms to dismiss employees when it is called for. This is because small business may not afford to retain unproductive employees since poor performance negatively affect the Company’s outcomes through demotivating best performers. However, firing of employee calls for proper handling of the dismissal process to curb the looming pitfalls such as reduction in morale and productivity with respect to retained employees. In addition, the image of the Company and recruitment of new staff are embedded on how dismissal process is handled. As noted by Richard S. Deems in his book ‘How to Fir e Your Friends’, â€Å"Do it the right way, and there’s no lasting negative effect on the company or the person who is existing. Do it the wrong way, and the fired employee may have a very difficult time finding a new job and you and your company may end up in court (Deems, 1989, p. 16).† The manager needs to set the tone as how the work group will react to the challenge or stress arising from the unwelcome change. The

Institution Environment of Finance Essay Example | Topics and Well Written Essays - 1000 words

Institution Environment of Finance - Essay Example The channeling of funds between the two groups mentioned can only happen accurately in the presence of particular participants and via main routes such as financial intermediaries or through the use of organized financial markets. - Mishkin and Eakins (2006) discuss that financial intermediaries can substantially reduce transaction costs that can be defined as the time and money spent in performing financial transactions for instance the exchange of assets, goods or services. One major difference between 'deposit-taking institutions' (DTIs) and 'non-deposit-taking institutions' (NDTIs) is that deposit-taking institutions are organizations such as banks and building societies, whose liabilities (assets to lenders) are primarily deposits. These can be withdrawn at short (sometimes zero) notice and usually form part of the national money supply. Non-deposit-taking institutions are organizations such as life assurance companies whose liabilities are promises to pay funds to savers only in response to a specified event. Unless the specified event occurs, it is very difficult to withdraw these funds and there is usually a considerable financial penalty for savers who do so. Similarly, contributions to a pension fund cannot be easily withdrawn until the pension falls due for payment. While the difference between Discretionary financial saving and Contractual financial saving is that discretionary is a day-to-day decision to acquire financial assets of varying kinds and in varying quantities. While contractual is the regular acquisition of a financial asset of a kind, of an amount and on a date specified in a contract. Question 3 How do money markets differ from capital markets Who are the main users of money markets Basically the difference between the capital markets and money markets is that - Capital markets are for long term investments, - Companies are selling stocks and bonds in order to borrow money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing or lending market where - Banks borrow and lend between each other, as well as finance companies and - Everything that is borrowed is usually paid back within thirteen months. Another difference between the two markets is what is being used to do the borrowing or lending. In the capital markets the most common thing used is stocks and bonds, whereas with the money markets the most common things used are commercial paper and certificates of deposits. Traditionally, differences of maturity have been used, as in Table, to create a distinction

Writing Truly Is Re-Writing Personal Statement Example | Topics and Well Written Essays - 750 words

Writing Truly Is Re-Writing - Personal Statement Example The exercises are particularly interesting because they cater to arousing critical thinking. I have to be more aware of everything that may indicate something in the comprehension of the text. It requires more than just shallow reading or scanning through the words. It is very much like being a detective and looking through the words to find out clues to solve a mystery. Critical thinking was among my favorite task to do because it is particularly interesting as it stimulates the brain. I have learned to be analytical in figuring out what the paper is all about and in trying to make sense of all that I read. The hardest part is trying to put thought into the paper. This, I learned, is an arduous task that requires time and effort. Writing truly is re-writing. The way that I see it, even the best of writers have editors. Being accepting of criticism and taking what you have learned from it to apply it in the future is the true measure of humility. Because it is next to impossible to say that your own piece of writing is perfect. If anything, to say so is either downright arrogant or foolish. Others are born with the talent to write and they only need very little editing as it comes naturally. But I have learned that it is also something that can be acquired. The secret to this is organization. One must first organize his thought as they may not make sense at first glimpse.  

Problems and Risks with Information Security in the modern world Research Paper

Problems and Risks with Information Security in the modern world - Research Paper Example This essay discusses that increasing and tougher market competition, globalisation, rapid developments in technology, higher demands from customers and other similar factors are some of the changes that companies are confronted with as they try to create their niche in the global market. In response, companies have redefined and re-shaped their strategies in order to equip them with the necessary tools and mechanisms that will enable the organisation to address the challenges brought by change. One of the most important challenges that organisations have to deal with is the rapid evolution and changes in information technology. Information is one of the primary assets organisations. It is being exchanged among organisations, employees, customers, management, partners and other stakeholders of the company. Meanwhile, developments in communication and computer technologies have paved for faster exchanges of information through the use cellular phones, internet, and other technological devices that allow people to be connected anytime, anywhere. In this regard, information technology has become an integral part and tool of organisations as firms respond to the challenges of the market and cope with the increasing demands of the customers. However, as information becomes more valuable to firms and organisational processes become more dependent on information systems (IS), IS security has become one of the major issues that modern enterprises have to tackle. (Belsis, Kokolakis & Kiountouzis 2005). Threats, identity theft, fraud, viruses, data integrity, data protection and other similar concerns have been part of the many issues that IS security have to deal with as the proliferation of the use of computers continue in the Information age. In this regard, this research will focus on the problems and risks in information security in general and in the banking sector in particular. Objectives of the Study The study intends to examine the nature of information security . It also seeks to determine the various problems and risks that information security is dealing with. Likewise, the study aims to identify some of the theories that are proposed in order to address the concerns and issues pertinent to information security. In addition, it aims to understand information security from the viewpoint of the banking sector. Finally, the study seeks to test information that will identify further concerns in information security in the banking sector. Research Questions In view of the integral role that information security in organisations, the research will be addressing two main questions and these are, first,

Multi-Cultural Law Enforcement Definition Essay Example | Topics and Well Written Essays - 500 words

Multi-Cultural Law Enforcement Definition - Essay Example For instance, an African man who moves to live in Europe starts to acquire the characteristics of Europeans. Bias refers to ‘unfair’ judgment. A biased person acts in favor of one side. It is therefore a tendency of a person to depict inclination, usually towards the unexpected side. E.g. a European employer gives a job to a fellow European at the expense of people from other nationalities, not by merit but origin. Culture refers to the standards associated with a given society, and which has distinct attributes which can help in uniquely identifying the members of the society. E.g. the African culture, which identifies people of African origin. The dominant culture refers to the culture that has highest number of members, as compared to the other culture. Thus, a dominant culture is the one that forms the highest population percentage. E.g. the dominant culture in America is that of the whites. Ethnocentrism refers to the belief that, one’s ethnic group is better than the others. For this reason, the person judges the other ethnic groups on basis of his own ethnic group. For example, an American judges African culture based on the standards of his ethnic group. It refers to a preconceived opinion by a person who doesn’t base on any reasoning. The person has a negative feel against the other. E.g. a negative comment from a lecturer to an African student, whereby the lecturer has a perception that Africans can never have anything worthwhile. It is a behavior, through which a group or a person is singled out from a group for unmerited negative treatment (Stafford, 1977). For example, a black person is isolated from whites and beaten up for no reasons. Zagefka, H., Gonzà ¡lez, R., & Brown, R. (2011). How minority members perceptions of majority members acculturation preferences shape minority members own acculturation preferences: Evidence from Chile.  British Journal Of Social Psychology,  50(2), 216-233. doi:10.1348/014466610x512211 There exist

U.S. Supreme Court Case Tennessee vs. Garner Study

U.S. Supreme Court Tennessee vs. Garner - Case Study Example The various arms and appendages of law while towing the practical manifestations of their powers do sometimes give way to special situations that alter and remold the conscience of a society and bring them under direct and enhanced observation and scrutiny of the masses and the intelligentsia. Infact such instances happen to be the important turning points in the legal and judicial history of any nation and do many a times lead to the evolution of the existing statutory provisions in the light of the current and emerging changes in the society. US Supreme Court case Tennessee vs. Garner is one such thought provoking event in the legal history of the US that strikingly challenged the existing statutory provisions pertaining to the use of force by the law enforcement agencies and called for reinterpretation and reshaping of this earlier taken for granted aspect of the policing in the US. October 3, 1974 was one other usual day in the life of the Memphis Police Officers Leslie Wright and Eton Hymon, when they were ordered to respond to a "prowler inside call". Both the officers promptly arrived on the scene of crime and after receiving relevant feedback from the neighbors, proceeded to scan the house being targeted. Hymon noticed a person running across the backyard and with the aid of his flashlight, was reasonably able to discern that the suspect, Edward Garner was an unarmed teenager of slight built (Findlaw, 2008). When Garner tried to climb over a fence, Hymon shot him in the back of his head to prevent him from escaping from the scene of crime (Findlaw, 2008). Later on a paltry ten dollars and a ring stolen from the house being scanned was found on the body of the suspect. Hymon acted in direct exercise of the authority given by a Tennessee statute to its police officers, sanctioning a deadly use of force so as to apprehend a fleeing suspect (Findlaw, 2008). The father of the deceased teenager filed a suit in the Federal District Court, to seek damages for the death and violation of his son's constitutional rights (Findlaw, 2008). The District Court upheld the constitutional credentials of the given statute and declared the officer's actions to be legal and valid (Findlaw, 2008). However, the United States Court of Appeals for the Sixth Circuit, while responding to an appeal by the appellee-respondent, reversed, stating that the use of force against a fleeing suspect in pursuance of the requirements of the Fourth Amendment is subject to be qualified in the light of the criteria of reasonableness (Findlaw, 2008). The basic issue that this case brings to fore is the ascertaining of the constitutionality of the deadly use of force by the law enforcement agencies against an unarmed, fleeing suspect (Findlaw, 2008). It questions the gross generalization of the provisions pertaining to the use of force by the law enforcement agencies against the relatively innocuous suspects who try to flee. Should the nature or proportion of force used by a police team against an escaping terrorist be same as that used against a harmless teenager, who attempts to escape from the scene of some petty crime This case highlights the human rights of the fleeing suspects and pragmatically checks the unrestrained use of force by t

What you learned Assignment Example | Topics and Well Written Essays - 250 words

What you learned - Assignment Example And Aristotle was also the one who had pointed on mimesis in human nature, so things can be learned on examples. After studding philosophy myself I think one should examine it to have a feeling he’s getting wiser and becoming more thoughtful and reasonable person. Felling of self-improving gives you dignity. And also philosophy gets thinking and questioning into a habit, so one will do less false and forced choices. I think following ethical goals in everyday life is necessary, because originally ethics is about rules and norms that keep society, compared to professional life where also professional ethics rules exist. According to Aristotle, ethics is about good actions. So I’m going to make actions in order to respect animal rights by not buying products made from natural animal’s skin and forming myself a habit to check if production was tested on animals. And I’m going to try to persuade my family and friends do the same by setting an example and by giving them knowledge why respecting animal rights in such way is good. Because like Plato, I think reasonable understanding what’s good is prerequisite for good

Synoptic Gospels Essay Example | Topics and Well Written Essays - 2000 words

Synoptic Gospels - Essay Example Synoptic problem†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦8 7. Faith seeking understanding†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦9 8. Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..10 9. Bibliography†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..11 Introduction The first three books in the New Testament (Mathew, Mark , and Luke) are referred to as synoptic gospels. These books talk about similar subjects an d stories concerning Jesus Christ. However, these books do not cover the events about Jesus Christ in the same length and detail. The books cover the events surrounding the life of Jesus Christ in the same sequence, and in most cases, have used similar words1. Relationship between the Synoptic Gospels The book of Mathew was written about 6 years after the ascension of Jesus Christ. This is according to the chronology of gospels that are found in the crucial dates in the lives of Mary and her son, Jesus Christ. The book of Mark followed after the writing of the gospel according to St. Mathew. It was written about 16 years after the ascension of Jesus Christ. The gospel according to St. Luke was written 27 years after the ascension of Jesus Christ while John wrote about 62 years after the ascension2. ... It is important to note that the synoptic gospels have difference and similarities. The similarities cannot be explained just in terms of event sequences. These books differ in terms of language, grammar, and expression3. The first similarity among the synoptic is seen in their chronology. After Mathew’s gospel had been written and widely read by other Christians, the gospel according to Mark was written. It is assumed that Mark wrote the gospel after reading the work of Mathew. This is due to the fact that Mark could read Hebrew, the language that Mathew used in writing his gospel. The main difference between the three gospels is seen in respect of languages used by the two gospel writers were using. Mark was using Latin to write the gospel after reading the Hebrew version of Mathew4. After Mark and Mathew had written their gospels, Luke wrote his gospel. The writing of the gospel according to Luke is assumed to have been influenced by the writings of Mark and Mathew since th eir gospels had been circulated widely. However, Luke could not interpreted Hebrew language in which Mathew’s gospel was written. The difficulty in understanding Hebrew explains why Luke’s gospel is more similar to that of Mark that Mathew. John’s gospel does not fall under the synoptic gospels because the book was written several years after the synoptic gospels had been written and were in wide circulation. The synoptic had already been translated into other languages when John decided to write the gospel. The difference between the synoptic and John’s gospel is in respect of the fact that John did not want to repeat the same events that had been narrated. John knew that his gospel was directed toward the whole church unlike the synoptic that were directed to specific audiences. The

How to analyze an ad Essay Example for Free

How to analyze an ad Essay Analysis of how a particular advertisement attempts to appeal to consumers By giving form to audience motives and desires, advertisers have the best chance of arresting attention and affecting communication. This is an analysis of the lift advertisement for Maxwell House Coffee created by the design agency Ogilvy Beijing of China. When the doors opened, sleepy people in an office building were shocked awake, providing a tongue-in-cheek metaphor for the effects of drinking a cup of Maxwell House Coffee. The marketplace has grown increasingly congested in a frenzied competition for the consumer’s attention. Within this context advertisers believe that in order to get consumers to buy their product ads need to have two orders of content: an appeal to deep seated emotions and information on the product. A sales pitch is used to attract attention and effectively convey the virtues of the product on offer. Elements of good layout are necessary to control the message. Emotional appeals seem to fall into several distinguishable categories. Every ad uses a variation of these appeals: the need for sex, affiliation, guidance, prominence, attention, autonomy, or the need to nurture, aggress, achieve, dominate, escape, or to feel safe. This ad totally circumvents all conscious reaction when the lift doors open to reveal a gaping hole. The illogical link between a gaping hole in the floor and a cup of Maxwell House Coffee is embedded in the metaphor: a better way to wake up. The link is forged pre-logically in the mind of the person who steps into that lift. Ones primal instinct is to protect oneself from falling. This is so deep-seated and spontaneous that the advertiser leaves no other option for the onlooker. This ad relies on aesthetic sensation for its appeal which, needless to say, has been executed with perfection. Nothing in this layout could be added or left out. Apart from the initial â€Å"shock† the onlooker has to admire the optical illusion and the cleverness of its presentation. The impact of this ad on all of one’s senses is undeniably large. Other appeals that are present in a lesser and overlapping degree are a need to nurture; a need for guidance; a need to escape; a need to feel safe; and a need for curiosity. Stylistic features are not appeals in themselves but influence the way the basic appeal is presented. This ad could be classified as avant garde. This ad is innovative, experimental and unconventional. The most striking element of the ad is the floor graphic which instantaneously grabs ones attention and penetrates the mind so profoundly, you’ll never forget the experience. The viewing angle on this ad relies on the premise that people instinctively look down when entering a lift, not only to look where they are stepping, but to avoid eye-contact with strangers. When they do look up, they look straight into the solution: a cup of steaming hot Maxwell House Coffee to â€Å"wake up†. Targeted customers: sleepy office workers. All the elements of the ad come together in a single appeal: drink Maxwell House Coffee to wake up. The vast majority of ads employ a common set of textual features: headlines, body copy, and slogans. Copywriting has a function: to sell the product. This ad epitomizes the words â€Å"art in pursuit of a business goal†. The floor graphics replace the need for a headline. The body is presented in a most refreshing way (no pun intended) and consists only of two words embedded in the steam to further engage ones imagination of the aroma of freshly brewed coffee. Body copy follows a picture and caption style. The traditional need for a slogan is sufficed by the placement of the logo of the product on the coffee cup. The elements of the layout of this ad totally control the way the message is received. The message is delivered in a uniquely creative and totally unexpected way. There is no competitive â€Å"noise† as the presence of the ad takes up the whole space within the lift. All layout elements have been used to maximum effect: attention, balance, proportion, movement, unity, clarity, simplicity and emphasis. Balance is achieved by proper weight distribution. In this ad the weight is on the floor. One’s knowledge of the effects of gravity plays a subconscious role. The tonal quality of the floor graphic and its fear inspiring content visually pulls one â€Å"to the centre of the earth and back again†. The poster is optically centered so the reader cannot miss the â€Å"sales pitch† and the artistic composition is nothing short of excellent – the floor graphics, the bare lift, the metallic surface of the lift walls and the design and placement of the single poster. In a highly original way forceful emotions are brought forth in an experience of uncontrollable surprise. The presentation of the information in the poster is reserved, dignified, formal, clean, uncluttered. One’s emotions guide the consumer through the ad, from beginning to the end. Directional impetus favors the elements to be stressed. The onlooker has nowhere to go. The recipient is taken â€Å"inside† the advertisement. Inside the lift, there is nothing to compete with it. The layout is unified by the confines of the lift, the muted colors of the walls, and the complementary colors in the poster. The inside of the lift determines the parameters of the ad space. This is a classic use of â€Å"white space† where the advertiser cleverly employs the barest necessities in such a profound way that this ad and the product it offers become unforgettable. The two important elements of shock (floor graphic) and solution (poster) are uniquely and very cleverly tied together. The message is clear and simple. Wake up with Maxwell House Coffee. Emphasis is achieved through the dominant element, the floor graphic which contrast sharply in size, placement and most of all its the impact to that of the poster which is strategically placed in the optical centre of the lift wall, directly opposite the doors (shock versus solution). Perfect. Does this ad effectively appeal to its target market? Yes, profoundly. And here is why: The chief element of this ad is the clever use of graphics to depict a gaping hole in floor of the lift. The product information is minimal as it needs no elaboration. The logo and a cup of coffee are all that is required. The rest is dependent upon the recipient’s own experience and feelings towards the product. The target market is well defined. The communication between the producer and the consumer is crystal clear and totally unambiguous: This product is experienced to be genuinely gratifying to the prospective consumer and a even non-coffee drinker will enjoy the emotional â€Å"ride† offered by the advertiser. Here both ends of the communication channel have been abundantly rewarded. The ad is clever, innovative, refreshing and directed at one appeal: drink Maxwell House Coffee. This won an international award for â€Å"Best use of Ambient Media: Large Scale† in 2008.

Economic Policy and The Global Environment

Economic Policy and The Global Environment 1 Introduction SMEs are seen as one of the critical handmaidens to huge relationship like change into one of their suppliers and sub-foremen to them. Hence, SMEs are key in the economy as giving a simple work business, structure gatherings of progress by presenting specific changes in the affiliations and close by SMEs utilizing high advancement based and give an adaptable and open to client. 1.1 Characteristic of SMEs Attributes of SMEs are dead set by factors like size of association or free proprietorship: 1.1.1 Impact of Age to the Business Study revelations help considered age of a relationship as a variable that may affect firm survival and improvement and/or definitive decline and passing the commitment of inventiveness that makes new SMEs face an a greater number of genuine threat of survival than more settled firms is that new firms dont have the experience, access, associations, reputation or the validness of the more settled firms, provoking limited access to external resources. 1.1.2 Impact of Location to the Business Geographic area has its suggestions for access to business sectors and different assets like finance, talented work, subcontractors, base, appropriation and transport logistics and other 10 offices. SME achievement additionally relies on upon neighborhood appearance and proceeded with or kept up future business operation in that area 1.2 Whatdo SMEs meanto the Singapore Economy? SMEs is just an imperative piece of the Singapore economy. They contain 92% of aggregate foundations, clichà ©s 51% of the workforce and produce 34% of the aggregate worth included. Nonetheless, their benefit is virtually a large portion of the non-SME foundations. The huge number of low-profit SMEs exists together with a few numbers of more gainful extensive, neighborhood undertakings and remote Mncs. 2 Contribution of SMEs in Singapore The vast majority of the nations saw SMEs as one of the significant that helps to generate a large share of new jobs, promote economic growth, increase competitiveness process and productivity and benefit together with wealth creation. 2.1 Generate a large share of new jobs. More vital than holding the dominant part of occupations in low wage and developing economies, SMEs make a key commitment to the net production of employments, particularly littler and adolescent firms.Work development originates from existing organizations as well as from recently made firms, particularly those that become quickly in the first years of action. These new businesses add up to a generally negligible impact of all organizations. Yet it is assessed that they represent very much a substantial offer of the aggregate employment creation. 2.2 Promote economy growth. Recently reported Singapore is blasting and the Southeast Asian monetary powerhouse extended its general 2013 gauge, expecting a last count of 3.5-4 for every penny GDP development for the year. Anyway the financial news out of Singapore isnt simply a story of colossal progress. Rather, Singapore is experiencing a monetary insurgency, the kind that places small and medium-sized undertakings (SMEs) at the cutting edge of the economy. 2.3 Increase competitive process and productivity. More than 5,600 SMEs were consistent with productivity improvements, capability upgrading and innovation. This was 19% more than 2011. Of these, 72% of the SMEs who had benefitted were small and micro SMEs. Sectoral productivity drives in the retail, food services, food manufacturing and furniture sectors continued to gain traction since its launch in 2011. More than 600 SMEs in these sectors have adopted technologies, redesigned workflows, invested in automation, upgraded capabilities and pursued innovations to improve productivity. 2.4 Wealth Creation â€Å" According to the latest Barclays Wealth Insights report, Singapore is the most fertile environment for millionaires, with 51% of High Net Worth Indiciduals(HNWIs) having accrued their wealth here in less that a decade.† (Lim 2014, P.3) 3 Constrain of SMEs in Singapore SMEs in Singapore got a few shortcomings, for example, low productivity, absence of financing, marketing and promotion and difficulties in lack in managerial capabilities. 3.1 Low Productivity Productivity was negative for six quarters from the final quarter of 2011, and improved marginally in the second and third quarters of a year ago. In a different study directed by the Relationship of Little and Medium Ventures (ASME), 61 for every penny of organizations surveyed demonstrated that they might want to see more activities to build profit. Singapore SMEs likewise need the legislature to expand the PIC plan past the 2014 budgetary year so more organizations can advantage from it. 3.2 Absence of Financing SMEs in the development and extension arrange regularly require a support in financing to accomplish sufficient scale and have to be internationally aggressive. In 2010, the Co-Speculation Program (CIP) was issued to catalyze persistent advance capital for Singapore-based endeavors, through co-contributing with the private segment. The administration put aside $250 million for the first period of the system, of which give or take $160 million has been shipped. This has been effectively catalyzed over $500 million of speculations from private part players, or in excess of three times of the governments cost. In perspective of the critical take-exceptional, we will dispatch the second stage not long from now with the Legislature giving an extra $150 million to match private division speculations. 3.3 Marketing and Promotion In cooperations with different nearby undertakings, we find that SME holders have a tendency to see advertising as a need just for huge companies or consumption that are reasonable just when the organization is doing admirably. These are combined up convictions. Showcasing, both as a solid capacity and as a consumption thing, is fundamental for all organizations substantial, medium or little and adroit advertising is discriminating particularly when the organization is not doing admirably. Sometimes, we will run over a couple of enthusiastic SMEs that are eager to cause uses on showcasing. Sadly, they are frequently restless with the results and they expect prompt money related profits for the consumptions. 3.4 Lack of Managerial Capabilities Managerial issues incorporate those identifying with human assets administration. Help businesses and SMEs in all phases of improvement face the regular issue of drawing in, creating, and holding gifted staff, whether specialists, managers, officials or directors. While MNCs have the ability to enlist and hold the best, supporting commercial enterprises and SMEs cant on account of their constrained money related assets and authoritative practices. The tight work market circumstance in Singapore additionally helps the circumstances, bringing about the cream of the work business sector streaming to the MNCs that offer higher pay, a superior nature of working life, and thoroughly preparing projects. 4 Steps to Strengthen SMEs in Singapore These days, Smes is confronting a considerable measure of issue, such as, absence of managerial value, low productivity, engineering imperative and high cost of creation. So with the goal Smes should fortify their shortcoming this is the few ways that ready to help, such as: 4.1 Priorty Sector Lending The need to hold more and better quality value capital against credits will crush banks ability to loan to SMEs, especially since SME giving accompanies higher expected misfortunes than corporate loaning. Banks will probably move a portion of the expense to SMEs through higher premium rates, along these lines decreasing interest for credit. 4.2 Price Perferences Previously, 15% value inclination was achieved out of SSI units for supplies to Psus/Government bodies. Presently it is adjusted at 20% and in the meantime the prohibition rundown will go. The value inclination is supposed to be settled on exact information which will go about as a measure of help to SSI units for using their ability enough. 4.3 Reformation of Labour Law Multitude of work laws has the potential to a vast degree for moderate development of industry in our nation. Work laws offer a lot of security to work compel by the procurement of least wages, PF, reward, tip and ESI and so on. Then again, the head honchos are forced to look for an earlier authorization actually for getting additional time work from work, on installment and despite common assent. More effective and diligent employees may be suitably compensated, and there ought to be a procurement to deduct wages for evading and sluggishness. Steady work laws are a paramount essential for Indian industry to confront the worldwide rivalry. 4.4 The Opportunity Globalization and liberalization would have made gainful open doors also. Numerous effective and fare arranged a few firms would have picked up out of this improvement. Such open doors ought to go about as a motivating force to abundant a little firm in India to improve their aggressiveness to infiltrate the worldwide business. This could likewise be accomplished by little firms getting to be sellers or subcontractors to remote expansive scale businesses. The pattern is outsourcing of supplies by Tncs and they are constantly vigilant for firms that could supply dependable and quality items. 4.5 Networking – Increase Competitiveness The advancement of between firm linkages is an alternate issue meriting more distinguishing. The expanding vicinity of transnational companies (Tncs) in the nation would open up new open doors for subcontracting/ outsourcing. This is on account of FDI has streamed into commercial ventures, for example, information transfers, transportation, electrical, metallurgical businesses and autos, among others, where opportunities for acquiring subcontracting/ outsourcing are distinguished for little industry. 5 Conclusion Based on the research, later on for SMEs ought to improve social flourishing obliges a need of women asserted SMES, youthful business person, adjust to the future globalization and in conclusion making more legitimacy and unwavering quality items. Firstly, In owning business grants for women following future pioneers who will see their organizations into the following period of development, to contend on the worldwide stage. Besides, Young business person swaying SMEs to be more progress and guaranteeing the budgetary issue too. Ultimately, adjust to globalization and making more unwavering quality and legitimacy items helps SME to be additionally adjusting in the worldwide advance by utilizing advance innovation to deliver a top notch items for society. 6 Reference: AsiaOne Business, (2014). More SMEs seek assistance to increase productivity. [online] Available at: http://business.asiaone.com/sme-central/news/more-smes-seek-assistance-increase-productivity [Accessed 9 Nov. 2014]. Chang, R. (2014). Budget 2014: More support for Singapore companies to raise funds See more at: http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds#sthash.SPRx0H0S.dpuf. AsiaOne Business. [online] Available at: http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds [Accessed 9 Nov. 2014]. Ho, D. and Lim, L. (2014). SPRING -Marketing is vital for all even for small companies. [online] Spring.gov.sg. Available at: http://www.spring.gov.sg/NewsEvents/ITN/2012/Pages/Marketing-is-vital-for-alleven-for-small-companies-20121123.aspx?skw=smes marketing and promotion [Accessed 9 Nov. 2014]. Ilo.org, (2013). Is small still beautiful?. [online] Available at: http://www.ilo.org/global/about-the-ilo/newsroom/comment-analysis/WCMS_218252/langen/index.htm [Accessed 6 Nov. 2014]. Lim, C. (2014). The Strategy Issue. Volume2 Issue 7. Singapore, p.3. Mediabuzz.com.sg, (2014). Singapore SMEs usher in new era of business productivity. [online] Available at: http://www.mediabuzz.com.sg/asian-emarketing/brand-n-ingameadvertising/2149-singapore-smes-usher-in-new-era-of-business-productivity [Accessed 6 Nov. 2014]. Meti.go.jp, (2014). APEC Internationalization of industrial Science and Technology. [online] Available at: http://www.meti.go.jp/english/apec/apec-isti/ISTI/abridge/sgz/sgzsme05.htm [Accessed 9 Nov. 2014]. Rbi.org.in, (2014). Reserve Bank of India. [online] Available at: http://www.rbi.org.in/scripts/FAQView.aspx?Id=87 [Accessed 10 Nov. 2014]. Sgemployers.com, (2014). www.sgemployers.com | snef. [online] Available at: http://www.sgemployers.com/public/industry/sme21.jsp [Accessed 6 Nov. 2014]. Singapore Business Federation, (2014). SINGAPORE SMEs NEED TO GET THEIR MOJO BACK. [online] Available at: http://www.sbf.org.sg/public/newsroom/details/20131121pr.jsp [Accessed 9 Nov. 2014]. Spring.gov.sg, (2014). SPRING Performance Indicators. [online] Available at: http://www.spring.gov.sg/aboutus/pi/pages/performance-indicators.aspx [Accessed 6 Nov. 2014]. Spring.gov.sg, (2014). SPRING New SME Definition and Launch of New Online Tools and E-Services. [online] Available at: http://www.spring.gov.sg/NewsEvents/PR/2011/Pages/New-SME-Definition-and-Launch-of-New-Online-Tools-and-E-Services-20110322.aspx [Accessed 6 Nov. 2014]. Spring.gov.sg, (2014). SPRING More SMEs Raised Productivity, Innovated and Upgraded Capabilities in 2012. [online] Available at: http://www.spring.gov.sg/NewsEvents/PR/2013/Pages/More-SMEs-Raised-Productivity-Innovated-and-Upgraded-Capabilities-in-2012-20130219.aspx [Accessed 6 Nov. 2014]. Spring.gov.sg, (2014). SPRING SPRING Scholars to Champion SME Growth. [online] Available at: http://www.spring.gov.sg/NewsEvents/PR/Pages/SPRING-Scholars-to-Champion-SME-Growth-20140718.aspx [Accessed 11 Nov. 2014]. U-Wen, L. (2014). BIGGER PRODUCTIVITY PUSH NEEDED FROM SMES. asme. [online] Available at: http://www.asme.org.sg/index.php/news/new/bigger-productivity-push-needed-from-smes [Accessed 9 Nov. 2014]. 6.1 Report: Chane Wube, M. (2010). FACTORS AFFECTING THE PERFORMANCE OF WOMEN ENTREPRENEURS IN MICRO AND SMALL ENTERPRISES. p.22. Lim, C. (2014). The Strategy Issue. Volume2 Issue 7. Singapore, p.3. Nyangori, R. (2014). Factors influencing performance of micro and small enterprises: a case of Kisumu City Bus Park-Kenya. pp.10-11. Oliver Wyman and Fung Global Institute, (2013). Asia Finance 2020 Framing A New Asian Financial Architecture. p.8. Raju, K. (2014). Small and Medium Enterprises (SMEs): Past, Present and Future in India KD Raju. pp.19-20. The Importance of SMEs in the Economy. (2014). p.1. 6.2 Newspaper: Chang, R. (2014). Budget 2014: More support for Singapore companies to raise funds See more at: http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds#sthash.SPRx0H0S.dpuf. AsiaOne Business. [online] Available at: http://business.asiaone.com/news/budget-2014-more-support-singapore-companies-raise-funds [Accessed 9 Nov. 2014]. Singapore Business Federation, (2014). SINGAPORE SMEs NEED TO GET THEIR MOJO BACK. [online] Available at: http://www.sbf.org.sg/public/newsroom/details/20131121pr.jsp [Accessed 9 Nov. 2014]. U-Wen, L. (2014). BIGGER PRODUCTIVITY PUSH NEEDED FROM SMES. asme. [online] Available at: http://www.asme.org.sg/index.php/news/new/bigger-productivity-push-needed-from-smes [Accessed 9 Nov. 2014]. 1