Problems in Defining Poverty

Problems in Defining Poverty Title: Relief of poverty is widely perceived to be the central aim of the social security system. With poverty itself being such a complex phenomenon, it is hardly surprising that differing approaches have been adopted to its definition and measurement. (Neville Harris: Social Security and Society in Harris: Social Security Law in Context p.41) Discuss. Introduction Poverty is indeed a complex concept and phenomenon, and its definition is the subject of considerable academic and social polemic. It is certainly true that there is  no single, universally accepted definition of poverty. In point of fact multifarious definitions of poverty are available in the United Kingdom and from many multilateral and international organisations. One relatively uncontroversial observation that can be made is that modern definitions of poverty have evolved away from conceptions grounded on a paucity of the physical necessities of life and concentrate more on relative and social notions of the state. The Definition of Measurement of Poverty: Competing Perspectives Given the United Kingdom’s membership of the European Union and the sovereignty of EU law among its 25 Member States comprising around 460 million citizens it is submitted that as good a place as any to start is the EU definition of poverty. Throughout the 1990s the definition endorsed by the EU was: â€Å"an income of less than half the EU average†[1] This figure was  £150 a week in 1993, and by this objective definition, around 50 million citizens were deemed to be living in poverty in the EU in 1993. However, in recent years the EU has expanded to embrace a number of central and eastern European states which are significantly poorer than its more established western European Member States and partly as a consequence the EU definition of poverty has changed to the following: ‘Persons, families and groups of persons whose resources (material, cultural and social) are so limited as to exclude them from the minimum acceptable way of life in the Member State to which they belong’.[2] This is clearly a more relative measure of poverty, acknowledging that poverty should not merely be measured on financial criteria but that the practical exclusion of those individuals and groups living in poverty from normal patterns of living, activities and customs should also be taken into account. There is therefore an important distinction between absolute and relative concepts of poverty. Absolute poverty relates to a state in which individuals do not possess the items necessary for the sustenance of life, including shelter, clothing and food. In work published at the turn of the last century Rowntree stipulated that a so-called â€Å"poverty line† should be set on the basis of minimum needs.[3] Whereas in 1995 the United Nations Copenhagen Declaration[4] defined absolute poverty in the following terms: â€Å"a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to social services. On the other hand, relative poverty is typically defined as the inability of an individual to engage and participate fully in cultural social and economic terms in the society in which they live. In simple terms relative poverty is therefore based on a comparison between poor individuals and other more fortunate members of society. Townsend has adopted this definition of poverty, stating that it constitutes: the absence or inadequacy of those diets, amenities, standards, services and activities which are common or customary in society.[5] In the United Kingdom poverty is measured in a variety of different ways and by different programmes.. These include: the National Plan on Social Exclusion[6], which was implemented after agreement at the 2000 Lisbon summit of the European Council to address poverty and social exclusion; the Households Below Average Income[7] statistical analysis, which applies a threshold of 60% of median income as a proxy to draw the poverty line; and the Opportunity For All[8] monitoring and review programme, which concentrates on assessing progress towards a fairer and more inclusive society. The United Kingdom Department of Work and Pensions[9] is engaged in an ongoing review of the formula and strategy it employs to measure income poverty. The current thinking is that the best approach would be a tripartite assessment centred on absolute low income, relative low income and material deprivation and low income combined.[10] A great many commentators in the field of sociology have criticised the notion of an absolute definition of poverty.[11] It has been argued that to adopt a general or global definition would be to fail to take account of the crucial socio-economic differentials that distinguish local communities, regions, and nation states. It is submitted that there is little doubt that relative definitions of poverty are now supported by the majority of sociologists.. Two arguments are typically invoked to support this line. First, it is contended that poverty is not a fixed concept but one that can only be properly comprehended and defined in the general socio-economic environment of the particular society in which individuals live. This means that an individual will be classed as in poverty by reference only to the living standards of those around him or her. However, this may be a pregnable position, given that by implication the â€Å"poor† in any given society may be defined by the â€Å"rich† and this may result in anomalies. It may be incongruous or inappropriate (in particular in the context of global poverty) to contend that a family that does not possess two cars, a DVD player, satellite TV and a computer with internet access should necessarily be defined as â€Å"in poverty† merely because those possessions are norms within the favoured society in question. Second, relative poverty is deemed an appropriate measure because individual societies possess a distinct and unique set of cultural norms and values. Arguably this contention is stronger because it seems appropriate that any definition poverty should take account of the sets of expectations, freedoms and choices that individuals have in the society of which they are a member. Cultural aspects of relative poverty focus on the ideal that all members of a society should be capable of sharing in the goods and services available and fundamental to that society and both engaging with and fully participating in the salient institutions of that society. On this basis, whereas the lack of a telephone might not be seen as putting an Ethiopian family into poverty, an old age pensioner living by herself in the United Kingdom might be deemed to be living in poverty if she does not possess such an instrument which is fundamental to life in our society. In the influential and authoritative study Poverty in the United Kingdom, Townsend argued: â€Å"Poverty can be defined objectively and applied consistently only in terms of the concept of relative deprivation†¦ Individuals, families and groups in the  population can be said to be in poverty when they lack the resources to obtain the type of diet, participate in the activities and have the living conditions and  amenities which are customary, or at least widely encouraged or approved, in the societies to which they belong. Their resources are so seriously below those commanded by the average individual or family that they are, in effect, excluded from ordinary living patterns, customs or activities.†[12] It appears therefore that the relativist approach is in the ascendancy, although this means that there can be no such thing as a clear poverty line, but rather a series of lines drawn in different contexts for different reasons. Concluding Comments In conclusion it is submitted that poverty, however it is ultimately defined or measured, is an inevitable by-product of the capitalist society in which we live, and which now proliferates in the Western World. Capitalism depends on a division between â€Å"haves† and â€Å"have nots† and however poverty is measured or defined it is most unlikely that it will ever be eradicated, given that the profit-motive which drives the commercial motor of society is dependent on its existence as a baseline for endeavour. In particular, if a relative concept of poverty because entrenched and sovereign, we will never rid ourselves of the state, because some faction of society will always be disadvantaged in comparison to the most favoured. The first part of the title to this work states that: â€Å"Relief of poverty is widely perceived to be the central aim of the social security system†¦Ã¢â‚¬ . This is probably true but the relief offered is largely analgesic only, providing basic painkilling for the symptoms of poverty but not directly addressing the root causes of poverty itself. The second part of the title to this work states: â€Å"With poverty itself being such a complex phenomenon, it is hardly surprising that differing approaches have been adopted to its definition and measurement. This is also true and can be explained by the fact that so many different agencies and policies, regional, national and international, are directed at tackling poverty for different reasons, from different perspectives and with different objectives..[13] Given the vast disparity that exists within society on a global but even on the national stage, it is hard to envisage a workable all-encompassing definition of poverty that would do justice to every context and every disadvantaged individual.. Consequently, it is likely and probably desirable that multiple definitions of poverty will continue to co-exist for the foreseeable future. BIBLIOGRAPHY Tiscali Reference Encyclopaedia: http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0021818.html Rowntree BS, â€Å"Poverty: A Study of Town Life†, (1901) Longman. United Nations, 1995, The Copenhagen Declaration and Programme of Action, UN. Townsend P., Poverty in the United Kingdom, (1979) Penguin. Department of Work and Pensions, National Plan on Social Exclusion: http://www.dwp..gov.uk/publications/dwp/2003/nap/ Department of Work and Pensions, Households Below Average Income: http://www.dwp..gov.uk/asd/hbai.asp Department of Work and Pensions, Opportunity For All: http://www.dwp.gov.uk/ofa/ Veit-Wilson, J (1987), Consensual Approaches to Poverty Lines and Social Security, Journal of Social Policy, 16(2), pp.183-211 Muffels, R, Berghman J and Dirven, H (1992), A Multi-Method Approach to Monitor the Evolution of Poverty, Journal of European Social Policy, 2(3), pp.193-213. 1 [1] http://www.tiscali.co.uk/reference/encyclopaedia/hutchinson/m0021818.html. [2] See: http://www.childreninwales.org.uk/2157.html. [3] Rowntree BS, â€Å"Poverty: A Study of Town Life†, (1901) Longman. [4] United Nations, 1995, The Copenhagen Declaration and Programme of Action, UN. [5] Townsend P., Poverty in the United Kingdom, (1979) Penguin. [6] See: http://www.dwp.gov.uk/publications/dwp/2003/nap/ [7] See: http://www.dwp.gov.uk/asd/hbai.asp. [8] See: http://www.dwp.gov.uk/ofa/. [9] See: http://www.dwp.gov.uk/. [10] It is proposed that each of the measurements should be on a before housing cost basis. [11] See inter alia: Veit-Wilson, J (1987), Consensual Approaches to Poverty Lines and Social Security. Journal of Social Policy, 16(2), pp.183-211. [12] Townsend P., Poverty in the United Kingdom, 1979, p31 [13] See for an insightful commentary and analysis: Muffels, R, Berghman J and Dirven, H (1992), A Multi-Method Approach to Monitor the Evolution of Poverty, Journal of European Social Policy, 2(3), pp.193-213.

Trinidad and Tobago: Policies on Inflation

Trinidad and Tobago: Policies on Inflation On September 8th 2010, the Honorable Winston Dookeran, the Minister of Finance for Trinidad and Tobago presented the Budget Statement for 2010/2011 fiscal year. The budget gave a comprehensive summary of the financial plan of the government, giving details of its expected levels of revenues as well as expenditure for the 2010/2011 fiscal year. Of the many areas of concern raised in the Budget by the Minister of Finance, inflation and government expenditure take precedence in this analysis. Due to the high levels of inflation in Trinidad and Tobago, the paper seeks to address the impact that various monetary and fiscal policies proposed by the government in the 2010/2011 Budget Statement have on inflation. The positive and negative effects of monetary and fiscal policies on inflation will be examined. Further, the paper will also examine the areas of government spending for the fiscal year 2010/2011 with the aim of identifying changes in expenditures patterns of the government and justifying reason for expenditure in certain sectors in this tough global economic climate. Time series data was utilized in order to determine trends and determine major changes in government expenditure. Suggestions were also made in an effort to identify certain plans that the government should consider and policies that it should monitor based on its current policies which it intends to undertake. The problem of inflation is one which plagues most developing countries as well as developed countries in recent times. Inflation is characterized by increases in the overall prices levels in a country over a period of time. In recent time headline inflation in Trinidad and Tobago has been influenced primarily by surging food prices while core inflation has remained relatively stable. Headline inflation measures the extent of changes in the prices level of all goods and services within an economy whereas core inflation can be defined as headline inflation minus other volatile components such as food prices. Based on the Central Bank of Trinidad Tobago Annual Economic Survey for 2009, changes in headline inflation from 2005 to 2009 was primarily due to changes in food prices, during which core inflation was relatively stable. This postulates that changes in the overall inflation rate which is referred to as headline inflation was due mainly to changes in food prices during which core inflation remained relatively constant. Further, the Summary of Economic Indicators June 2010 by the Central Bank of Trinidad Tobago has summarized that headline inflation rose to 13.7 percent from June 2009 to June 2010 primarily due to food inflation which increased to 31.1 percent during this same period, while core inflation remained constant during the year at 4.3 percent. The Trinidad and Tobago 2010/2001 Budget Statement estimates were made based on an average inflation rate of seven percent. This figure can be identified as the Government forecast for inflation for the fiscal year. The budget statement identified inflation as a concern with particular emphasis being placed on food price inflation. Inflation reduces customers purchasing power and thus it becomes more difficult for people to acquire basic goods and services. Therefore, it becomes imperative for Government of Trinidad and Tobago to put measure in place to reduce inflation and also to ensure that policies implemented to promote various sectors within the economy have little or no inflationary effects. In the budget statement, the government proposed plans to revitalize the agricultural sector in an effort to increase food production and expand the agricultural sector. The government further identified factors such as water resource management, drainage and irrigation as paramount to its public sector investment programme tailored towards making agriculture more profitable. In addition it proposed certain initiatives such as the enhancement of the Agricultural Development Bank which will provide a Loan Default Fund facility to assist farmers with natural calamities and interest payment, the reduction of interest rates to between three and five percent and the availability of twenty million dollars for greenhouse projects. All these initiatives as mention before are geared towards making agriculture more attractive, more profitable and more productive in an effort to reduce the food import bill of Trinidad and Tobago. Due to the lack of a productive agricultural sector in Trinidad and Tobago, fluctuating oil prices and the global financial crises, the cost of importing good such as food items has become more expensive. As a result, this higher cost is being passed on to consumers in the form of higher prices. This type of inflation is referred to as cost push inflation. Cost push inflation causes a contraction in aggregate supply and with aggregate demand remaining unchanged, the final result is an increased in overall prices. Therefore, if the initiatives undertaken by the government are successful and result in an increase in the production of food locally in Trinidad and Tobago, this could reduce the number of food items which are imported, thus decreasing the food import bill. Food prices will fall and subsequently headline inflation as changes in food prices is the major contributor to changes in headline inflation. Monetary policy can also be used to strengthen the local agriculture sector. The Budget also supports the Trinidad and Tobago Central Banks reduction of the Repo rate to 4.5 percent with further reductions to be expected. The repo rate is one of the monetary instruments used by the Central Bank of Trinidad and Tobago. The Repo rate was introduced by the Central Bank of Trinidad and Tobago in May 2002 and it is the rate at which the Central Bank is prepared to provide funds overnight to commercial banks that are unable to meet their liquidity demands. This reduction in the repo rate to 4.5 percent is expected to reduce the interest rate in an effort to attract investment. Lower interest rates are expected to attract investment from the private sector and also foreign companies in an effort to increase aggregate supply primarily through increased food production and thus reduce overall prices levels. A lower interest rate can lead to an increase in investment which raises aggregate exp enditure as purported by the Keynesian Cross. This increases real gross domestic product which further results in an expansion of the aggregate supply curve and a reduction in price levels. The Central Bank using accommodative monetary policy needs to ensure that the money supply does not grow too rapidly causing inflation. Accommodating monetary policy most times results in increases in the price level. Milton Friedman, a famous economist stated that inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output. The Classical school of though is based on the quantity theory of money which is given by the equation MV=PY where M refers to the money supply, V refers to the velocity of money, P refers to the price level, Y refers to the real current gross domestic product and PY refers to nominal gross domestic product. The Classical school of thought believes that V and Y are constant and therefore, any changes in the money supply by the central bank will have a direct impact on the price levels. Therefore, it is imperative that the Central Bank ensure that the mon ey supply does not increase too rapidly and also that if the money supply does increase it is as a result of changes in output. The government in its effort to improve the production of oil and gas has reduced the petroleum profit tax from fifty percent to thirty five percent. In addition, due to the reduction in oil production over the past decade by approximately twenty five percent, the government decided to revise the Supplemental Petroleum Tax Regime with a new system which will use base rates and a sliding scale mechanism for both marine and land operations. The government also provided incentives which includes a twenty percent reduction in the Supplemental Petroleum Tax rates for mature or small oil fields, an Investment Tax Credit of twenty percent on qualifying capital expenditure in respect of the Supplemental Petroleum Tax for mature oil fields both land and marine. High energy cost in some industries will result in higher cost to consumer and a reduction in aggregate supply. Since oil and gas is used in almost all industries in some way or form, the reduction in these taxes could result in a fall in cost to companies both within and outside the energy sector. The lower cost of inputs would lead to an increase in aggregate supply. Additionally, lower operating cost can be passed on to consumers in the form of lower prices. However, it is important to note that if actual output does not increase, this would result in a contraction in aggregate supply. This would lead to and increase in the overall price levels and subsequently periods of falling real GDP. This phenomenon is referred to as stagflation. Stagflation is characterized by periods of falling output and increases in the price level. Situations like the CLICO Fiasco, the financial situation facing the Hindu Credit Union and other economic and social policies pursued by the government, has prompted an increase in budgeted expenditure from approximately $44 billion last fiscal year to $49 billion this new fiscal year. Government expenditure is a key component of aggregate expenditure which helps determine the level of gross domestic product. The gross domestic product of Trinidad and Tobago is made up primarily of revenues from the oil and energy sector. However, there has been declining production of oil over the past 10 years of approximately twenty five percent from 130,000 barrels a day to 103,000 barrels a day and based on the Annual Economic Survey 2009 from the Central Bank of Trinidad and Tobago, there has also been a continuous fall in real GDP growth from 2006 to 2009 fell where in 2009 negative three percent of real GDP growth was registered. The Keynesians argued that increases in aggregate expenditure caused by increases in consumption, investment, government spending or net exports can lead to an inflationary gap when actual GDP exceeds potential GDP. Thus and increase in government spending as purported by the Government of Trinidad and Tobago for this fiscal year can result in an inflationary gap. Furthermore, the budget also highlighted that the government owed contractors monies amounting to approximately $4 billion while there were outstanding VAT refunds still had to be paid in the amount of $2.8 billion. This lack of funds by the government has resulted in businesses experiencing cash flow problem. This makes it very difficult for businesses to meet their financial obligations. Also, based on the inventory system that the business uses whether it be First In First Out or Last In First Out it can be extremely difficult for the business to replenish stock in periods of inflation and can further affect the revenue that the business generates. As a result businesses may not have the necessary cash to replenish inventory which can result in limited supply which can manifest itself into even higher prices for customers in order for businesses to meet with the increase cost of inventory. Thus it becomes important that the government find ways to assist those businesses and pay o ff monies owed to these businesses in an effort to increase the cash flow within these businesses and prevent prices from rising further due to cash flow problem being experienced by businesses. Although the impact of government policies on inflation is very important, it is also important to analyze the level of government expenditure for this fiscal year 2010/2011 for Trinidad and Tobago. The Minister of Finance in his budget address stated that the calculations in the 2011 Budget were made based on a real GDP growth rate of 2 percent, average inflation of 7 percent, oil price of US$65 per barrel and gas price of US$2.75 per mmbtu. The total government expenditure for this fiscal year for Trinidad and Tobago was estimated at TT$49 billion. Government spending comprises transfer payments, current expenditure and capital expenditure and is financed by revenues raised through taxes or government borrowing or a combination of both. Government spending is a critical component of total expenditure and some of its functions include providing public and merit goods, promoting economic activity, influencing resource allocation, stabilizing the economy and the redistribution of inco me and wealth. When government uses government expenditure and taxes to influence the economy, this is referred to as fiscal policy. Based on the Central Bank of Trinidad and Tobago, Annual Economic Survey 2009, there has been an overall increase in government expenditure from the fiscal year 2005/2006 to 2010/2011. In 2005/2006 government expenditure was TT$ 31 197.9 million, in 2006/2007 it was TT$ 37 765.9 million, in 2007/2008 it was TT$ 44 715.1 million. In 2008/2009 where the country experienced its first deficit in seven years government expenditure was TT$ 45 584.2 million, in 2009/2010 it was TT$ 44 347.3 million and 2010/2011it is estimated to be TT$ 49 billion. It is also important to note that most components of government spending during this same time were also increasing such was current expenditure, expenditure on goods and services, wages and salaries and interest payments. During most of this period government spending as a percentage of GDP increased from 27.8 percent in 2006/2006 to 32.5 percent in 2008/2009. However in 2009/2010 government expenditure as a percentage of GDP fell to 31.3 percen t. Thus over the past five years government spending has increased by approximately TT$18 billion. In the 2010/2011 Budget statement, there was a breakdown on some of the areas of expenditure. Education and training received TT$ 8 325 million, Infrastructure received TT$ 5 918 million, Health received TT$ 4 341 million, National Security received TT$ 4 762 million, Agriculture received TT$ 1 836 million and Housing received TT$ 1 837 million. The government proposed expenditure pattern is an attempt to reduce inflation, foster economic growth and development and providing a better standard and quality of life for the people of Trinidad and Tobago. The government of Trinidad and Tobago has identified national security as one of its major areas on concerns. As of October 27th 2010, Trinidad and Tobago had recorded a total of four hundred and one murders. Crime has escalated in Trinidad and Tobago and the safety of resident and visitors are important. As a result the government has a projected expenditure figure of TT$ 4 762 million for national security. Recurrent expenditure for national security from 2004/2005 to 2008/2009 has increased from TT$ 1 874.5 million to TT$ 3 870.2 respectively. This shows the continued spending by the government towards promoting law and order and reducing crime. The government also has provided a special duty allowance of TT$ 1000 for more than 7000 police officers with taxes on this allowance waived. This increase in allowance can be used as a tool to motivate police officer in performing their duties. The government will also undertake initiatives such as the refurbishment and upgrading of polic e stations, introduction of bike patrols, the establishment of a National Security Operations Centre and a Special Criminal Court to expedite the court process. From 2004/2005 to 2008/2009, recurrent expenditure for Agriculture has increased continually from TT$ 362.9 million to TT$ 586.1 million respectively. However, recurrent expenditure in agriculture is not a significant part of recurrent expenditure as other areas such as health, education and energy. Therefore, Trinidad and Tobagos government expenditure in Agriculture is reflective of the government initiative to make agriculture more profitable and increase the local production of food. As mentioned before this venture is undertaken in an effort to reduce the food import bill of the country and further reduce the level of inflation caused by food prices. Also, this could result in increases in Agriculture contribution to gross domestic products thus making the country less reliable on energy and its associated products as its primary course of revenue. Further, expenditure in health has increased from 2004/2005 to 2010/2011. The Minister of Finance in the budget highlighted that health was another major issue facing Trinidad and Tobago. As a result expenditure in this sector will be geared towards the provision of adequate and timely health services to the citizens of Trinidad and Tobago. Government expenditure in the health sector will include expenditure to build new health facilities such as hospital, upgrade and expand current health facilities and services, improve access to health services, reducing communicable diseases and improving health care management. These initiatives in the health sector reflect the importance of health services and how important it is for person to have access to adequate and proper health services. This fiscal year, education and training accounted to approximately 17 percent of total government expenditure. The government has realized that knowledge is a critical component of an economy and as a result the government will continue initiatives such as the GATE programme and also restructure the On the Job Training programme. Some economists believe that knowledge does not experience diminishing returns. Therefore, this reflects positively on the economy of the country as the country may even decide to sells advising services which is an initiative that Trinidad and Tobago are pursuing. Moreover, the government has also decided to allocate approximately 12 percent of its total expenditure to infrastructure. Initiatives include providing person with a steady water supply and other basic amenities, implementing flood mitigation plans and the cleaning and de-silting of rivers. Also, sights and several attractions will be upgraded. This is in an effort to market Trinidad and Tobago as a major tourism destination which will further creates jobs and increase the contribution of tourism to gross domestic product. Thus, this will also make the country less dependent on energy and its products as the countrys main source of revenue. It is also important to note from the Central Bank of Trinidad and Tobago Statistics that from 2004 to 2009 government expenditure on areas such as goods and services, wages and salaries and transfer and subsidies increased continuously. For example, government expenditure on goods and services increased from TT$ 2, 440, 407 000 in 2004 to TT$ 5, 860, 175 000 in 2009 which marks an increase of approximately 58.35 percent over the five year period. This again reflects the high import bill especially on food items for Trinidad and Tobago over the past 5 years. The continuous increases in expenditure on wages and salaries paid by the government during this same period reflect the fact that the government is the main employer within the economy. This paper has sort to identify the effect of government policies and expenditure patterns on inflation and an analysis on government expenditure. The paper highlighted that certain initiatives undertaken by the government could help in reducing the overall price level in the country. These initiatives include the revitalization of the agricultural sector, increased government expenditure, reductions in the Petroleum profit tax and a reduction in the repo rate. The revitalization of the agricultural sector is geared towards reducing the food imports bill and subsequently food inflation. The reduction in the repo rate is in an effort to lower commercial banks interest rate to stimulate investment in certain areas such as manufacturing with the goal of reducing imports and subsequently food prices and inflation. The reduction in the petroleum profit tax to 35 percent is in an effort to stimulate oil production which has been declining over the past few years. However, as highlighted ea rlier in the paper, these initiatives need to be monitored careful as they can lead to further inflationary pressures. For example, a reduction in the repo rate can trigger lowers interest rates, banks experiencing excess liquidity and increased level of investment increases the money supply and leads to inflation as argued by classical economists. The paper also commented on government expenditure and identified an increase in government expenditure from the previous fiscal year to this fiscal year. Government expenditure in key areas such as education, health, infrastructure and national security increased over the past few years. National security and health were two major areas of concern for the government which received significant budgetary allocation by the government. The increase in crime and lawlessness has caused government to put measure in place to try to curb the crime problem in the country and also motivate the police to carry out their duties. Also, the government plan to improve the health sector was reflected by the governments budgetary allocation for the sector. The government also increased its funding in the agricultural sector in an effort to make agriculture more profitable and increase the production of food. The government also allocated revenues in other areas apart from energy in order to find alte rnative sustainable sources of revenue such as agriculture, tourism and manufacturing. It would be recommended that the government continue to pursue it agricultural initiatives and derive ways to make agriculture more attractive to individuals in its effort to make the sector more productive and profitable. In this way agriculture can contribute more to GDP both in the primary and secondary sectors as agricultural products are diversified and used into other sector such as manufacturing. This would also lead to other sector such as manufacturing contributing more to GDP and reduce the countrys reliance on primarily revenues from the energy sector. Also, the government would have to find ways to control the money supply which could take the form of selling government treasury bills and bonds. This would be in an effort to cope with the excess liquidity faced by commercial banks. In addition, due to the depletion of the natural resources available to the country which is reflected in the decreasing amount of oil produced for the past years, the government would be advis ed to develop other sector such as agriculture, manufacturing and tourism to increase the contribution of other sectors towards gross domestic product. It is know that an Open Petroleum Economy such as Trinidad and Tobago is one where rapid increases in GDP exist alongside high level of unemployment. According to the Open Petroleum Economy Model if anything negative happens to the oil sector the entire economy can suffer due to high dependence on that once sector. Seers argued that such a model represent a time bomb based on the balance of payment problems it can pose and how the wealth generated from it can disappear overnight. Therefore, it becomes increasingly important for Trinidad and Tobago to diversify into other sector of the economy. The country can pursue the manufacturing of some of the food which it imports and also pursue sustainable tourism development which can lead to increased employment. This would make the country less dependent on mainly oil as its main source of revenue as it currently the case. Further, the government should be extremely careful in its spending patterns and will be encouraged to spend in areas which will be productive to the country and benefit the citizens of the country. Spending should focus mainly on providing citizens with basic necessity items such as public and merit goods and proper social infrastructure. In this tough economic climate, the government should be very critical of the areas in which it spends money as excessive spending can have negative effects on the economy such as inflation. Does staff induction impact upon labour turnover? Does staff induction impact upon labour turnover? DOES STAFF INDUCTION IMPACT UPON LABOUR TURNOVER IN THE UK HOSPITALITY INDUSTRY? CHAPTER 1 INTRODUCTION 1.1 Overview This dissertation studies human resource management (HRM) and specifically employee induction and labour turnover. It aims to explore, evaluate and analyse the impact of employee induction on labour turnover in the hospitality industry. There is a plethora of literature that supports induction training and promotion of organisational culture, suggesting it can lead to higher levels of commitment, productivity, quality of service and profitability and reduced level of labour turnover (Boella, 2000: Fowler, 1999: Hofstede, 1994: Mullins, 1992: Nickson, 2007: Taylor, 2008: Torrington, 1994: Storey, 2007: Watson, 1995). 1.2 Rationale It is widely recognised by academics (Boella 2000:, Boella and Goss-Turner 2005:, Cook, 1993: Fowler, 1999: Goldsmith, Nickson, Sloan and Wood, 2003: Meighan, 2000: Mullins 1992: Sommerville, 2007: Storey, 2007) that high levels of staff turnover can lead to lower levels of customer service, reducing customer satisfaction decreasing profitability. The original reason for undertaking this study stems largely from the authors personal experience of working in the hospitality industry. Experiencing first hand the effect of a high labour turnover through team members either; resigning, being sacked, changing department or coming to the end of their contract. The effects of the high turnover added pressure to existing staff as they had to cover shifts, train new staff whilst also losing shared knowledge and expertise; leading to reduced staff morale, productivity, levels of service and customer satisfaction. Employee turnover has a research stream that can be traced back to the work of March and Simon (1958) and was primarily based upon the level of job satisfaction and organisational commitment. Labour turnover has always been high in hospitality, leisure and tourism compared to other sectors (Boella, 1992). This is reinforced with a survey by Roberts in 1995 (cited in Goldsmith et al 2003) found that of the 150 hospitality companies surveyed, where 95 percent identified high labour turnover as a problem. Ten years later and the industry still has a reputation for very high levels of labour turnover (Boella and Goss-Turner, 2005). The UK hospitality, tourism and leisure industry sector accounts for nearly 5% of the UKs total economic output, employing around two million people, representing one in 14 jobs, approximately 7% of the total UK workforce (People 1st, 2009). According to research by the Charted Institute of Personnel Development (CIPD), the hospitality industry has the highest staff turnover in the UK. A survey by People 1st (2009) reinforced this point by highlighting the 31 percent turnover figure in 2008/2009, costing an estimated  £414 million. The average cost of filling the vacancy created by turnover at  £219 without marketing, with marketing it would cost  £673 and  £764 for a managerial position. With the world recession, organisations are looking to save money where ever possible, reducing staff turnover is one area that could be seen as a target. 1.3 Aims and Objectives 1.3.1. Aim To evaluate the effect staff induction has on labour turnover in the UK hotel sector; looking specifically at operational staff. 1.3.2 Objectives The objectives for this dissertation are as follows: To evaluate literature on labour turnover, staff induction, organisational culture and commitment and HRM approaches in the hospitality industry. To analyse different approaches to induction and its effect on labour turnover. To evaluate models of best practice in induction and evaluate their use in the hospitality industry. To make recommendations on a best fit model of induction in the hospitality industry. Concluding the research and identifying limitations to the dissertation. 1.4 Research Methodology Research can be defined as â€Å"an orderly investigation of a defined problem using scientific methods to gather representative evidence and draw logical, unbiased conclusions (Poynter, 1993-p1). Sekran (2000) defined research as â€Å"the process of finding a solution to a problem after thorough study and analysis†. This dissertation is â€Å"a review of existing knowledge in a particular area together with the creation of a new slant of this knowledge† (Clark, Riley, Wilkie and Wood, 1998: p.7). The dissertation uses secondary research only. According to Clark et al (1998) and Sekran, (2000) secondary research does not introduce any new data and is based solely on data that already exists. The generic topic of HRM, linked to organisation culture, commitment, loyalty and staff induction has been widely researched and producing many academic journals, articles and theory which can be drawn upon. There are numerous advantages to using secondary research. As the data has already been published it can save resources such as time and money (Sekran, 2000), larger sets of data can be collected, analysed and evaluated with the effort focused on the analysis and evaluation (Saunders, Lewis and Thornhill, 2007). Furthermore, it can present higher quality data than primary research, it provides both qualitative and quantitative research (Sekran, 2000) and it can be checked by anyone at any time. Saunders et al (2007:p.256) stated that additionally it allows â€Å"more time to think about the theoretical aim and substantive issues† and can lead to â€Å"unforeseen or unexpected discoveries.† However there are some disadvantages to using secondary data. The data could have been collected with a purpose different to the research question it is being used for (Saunders et al, 2007). The data may be out of date, old or unreliable, so first the validity of the source must be v erified (Sekran 2000). Clark et al (1998) identified that up to date information may be difficult to obtain. Types of secondary data that are to be used in this research project uses various sources, including; government publications, industry statistics and reports, book and journals. These will be providing the main source of information, as the majority of this research is reliable and easily available. In order to locate information and sources, Emerald, Brookes Electronic Library, Google Scholar, and Brookes Library will be used. Online resources are quick, simple and easy to access. 1.5 Limitations to Research The research for this project does not include primary data, and is purely based on secondary research, as explained above this has its drawbacks. The project focuses on the UK as will hte literature however non UK sources will be used. 1.6 Chapter Structure This section will briefly outline the chapter structure and give an overview of what each chapter entails. Chapter 1 This chapter outlines the aims and objectives of the research paper, including a rationale justifying the reasons for this enquiry of research along with possible limitations and problems that may occur. It will also give a brief overview of the research methods used. Chapter 2 This chapter defines and identifies labour turnover in the UK hospitality industry. Exploring the patterns, causes and effects including the induction crisis. Chapter 3 This chapter aims to define and describe the current staff induction process, highlighting key approaches and models. Exploring the importance of socialization and building loyalty and the benefits. Chapter 4 This chapter draws on the research and applies it in indentifying a best fit staff induction model to reduce labour turnover in the hospitality industry. Chapter 5 This chapter aims to evaluate and review the effect staff induction has on labour turnover. This chapter also provides a conclusion with the recommendations and limitations to the research. CHAPTER 2 EVALUATING LABOUR TURNOVER IN THE HOSPITALITY INDUSTRY AND ITS IMPACT UPON PERFOMANCE 2.1 Introduction Labour turnover is an important issue to all employers worldwide; from governments and multinational companies to small privately owned business (Goldsmith, A., Nickson, D., Sloan, D. and Wood, R. 1997). Labour is an essential resource to any business, determining future success (Lucas, 2004). This chapter defines labour markets, explores the concept of labour turnover, defining it and highlighting key methods used to measure labour turnover, along with the effects. 2.2 Labour Markets The starting point for all strategic activity in HRM is to understand in which an organisation operates (Goldsmith et al, 1997). It is only possible to formulate accurate policies and practices once its keys features have been identified and their importance understood (Torrington, Hall and Taylor, 2005). The labour market is the source that provides the fuel for labour turnover. Riley (2000) refers to the labour market as a pool of available talent in which employers compete to recruit and subsequently retain staff. Labour markets are not organised, centrally planned, structure co-ordinated machines, rather a free flow or movement of employees in and out of jobs (Goldsmith et al 1997). Riley (1996) summed up the free flowing, erratic nature by stating that the market consists of thousands of individual decisions by employees and employers independently. Over time these small, singular choices provide a pattern or trend of the labour market, meaning the supply and demand in a labour market can be determined by the independent unconnected decisions (Torrington et al, 2005). One model created to help understand the labour market within the hospitality industry is the ‘dual labour market theory (Goldsmith et al, 1997 p16). They state the labour market is ‘made up of two distinct but related groups or markets, a primary labour market and a secondary labour market. Below in Table 1 is an outline of each theory. PRIMARY LABOUR MARKETS SECONDARY LABOUR MARKETS 1. Jobs are supplied by large, highly profitable firms. 1. Jobs are supplied by mainly small firms where profitability is not easily assured. 2. There is a high capital to labour ratio in these firms and high productivity. 2. There is a low capital to labour ratio and productivity tends to be low. 3. Production is usually large scale in nature and based on substantial proactive investment in technology. 3. Production is usually small scale and intensive in nature, and in commercial personal service industry at least, technological requirements are based on clearly defined needs. 4. There is a stable demand for products arising from national and international markets. 4. Demand for products and services is subject to irregular and/or seasonal fluctuations rooted in local and regional markets. 5. Wages and skill levels are relatively high. 5. Wages and skill levels are relatively low. 6. Opportunities exist for training and advancement. 6. Training opportunities are limited as are opportunities for advancement. 7. Employment is stable. 7. Employment is unstable. 8. Unionisation is often high. 8. Unionisation is low or nonexistent. Table cited in Goldsmith et al (1997) p17. Woods (1997) agreed with the dual labour market theory, summarising the primary market as consisting of highly profitable large firms, relatively highly skills jobs with the opportunity for training and development. It is widely perceived that the majority of the hospitality industry is similar to the secondary labour market; with profitability not guaranteed, relatively low paid, low level skilled jobs that are intensive (Goldsmith et al, 1997). 2.3 The UK Hospitality Labour Market The UK hospitality, tourism and leisure industry sector accounts for nearly 5% of the UKs total economic output, employing around two million people, representing one in 14 jobs, approximately 7% of the total UK workforce (People 1st, 2009). However as highlighted by Lucas and Wood (2000) the hospitality industry id highly reliant on young part time and casual labour. The State of the Nation Report 2009 by People 1st reinforces their point with 16 percent of the hospitality workforce aged between 16 and 19 years old, whilst only 5 percent are over 60 years old. Of the total workforce 59 percent are female of which 55 percent are part time employees, compared with 31 percent male. Boella (2000) identified that the common hospitality employee is typical of the secondary labour market; seeking short term employment, with relatively low or no skills. They have no desire to create a career and consequently leave after a short term of employment. This constant turnover is part of a vicious cycle, whereby employers are reluctant to invest in employees and as they leave soon after training (representing a loss of investment) and the employees leave due to little or no training (Goldsmith et al, 1997; Mullins, 2001). 2.4 Labour Turnover As already established the hospitality industry has a high level of turnover. Boella and Goss-Turner (2005, p178) define labour turnover as ‘the total number of leavers expressed as a percentage of the total number of employees in a department, unit or organisation. Lashley and Lincoln (2003) agreed by highlighting labour turnover simply as the movement of labour out of and into a working organisation. To understand how ones organisations faring it is possible to compare to industry averages. It is clear that hospitality had a higher than average figure in 2007. This high level of turnover is widely accepted as normal (Mullins, 2001). Industry Average Turnover 2007 Hotels and Catering 32.6% Retail and Wholesale 27.5% Media and Publishing 27.1% Construction 27.1% Call Centres 24.6% Communication 23.5% Manufacturing 20.95 Table: Turnover Rate. Cited in Taylor (2008 pp434). 2.4.2 Benefits of Labour Turnover It is highly debated in the literature as to whether turnover is a positive or negative within a business. Carrel et al (1995) in Taylor (2005) present the notion of functional versus dysfunctional turnover, suggesting that functional promotes innovative ideas and methods. Boella (2000) agreed and stated that with new employees ‘comes a breath of fresh air, a necessary change to prevent stagnation. Torrington et al (2005) also draw attention to research by Hom and Griffeth (1995) that has shown function turnover exists greater than dysfunctional. The net results is an improvement in productivity as the poorer employees quit, leaving a higher proportion of good employee enhancing organisational effectiveness. 2.5 Reasons for High Labour Turnover People leave employment for a variety of reasons, many of which are outside the power of an organisation to influence; such as leaving is retirement. Highlighted below are some of the key reasons of labour turnover. 2.6.1 Induction Crisis Mullins (1998) cited staff turnover to be at the highest level during the first few months of employment as the induction crisis. A report in 1984 by the HBTIB states that in the specific sector of guesthouses and hotels almost 45 percent of all new workers left their employment within the first three months, and 15 percent within the first month. This has reduce slightly over the last 20 years, with the People 1st (2009) survey highlighting that over 10 percent of turnover came within the first six months of employment, with bar staff at an average of 30 percent. This trend is disruptive and expensive, especially as the investment of training and time have been lost (Mullins, 1998). Torrington et al (2005) go further and identify more costs lost, such as marketing and interviewing, although these can be saved if the next employee is hired internally as opposed to externally. 2.6.2 Outside Factors Outside factors relate to situations where someone leaves for reasons that are largely unrelated to their work (Torrington et al, 2005). One of the most common reasons is relocation, whereby an employee moves cities or countries. Others might include the lifelong passion to travel, illness, and family issues (Meighan, 2000). To an extent this type of turnover is unavoidable, however is may be possible to provide childcare or flexible working hours (Torrington et al, 2005). 2.6.3 Push and Pull Factors With push factors the problem is dissatisfaction with work or the organisation, leading to unwanted turnover (Torrington et al, 2005: Lashley and Lincoln, 2003). Causes could include a range of issues from; insufficient development opportunities, boredom, ineffective supervision, poor levels of employee involvement or personality clashes (Goldsmith et al, 1997, Fowler, 1999: Mullins, 1995 and Torrington et al, 2005). If there are no opportunity to voice these concerns an employees tend to look elsewhere for work. Pull factors are the opposite, the attraction of a rival employer. Salary levels are often cited as the main cause, when a rival offers a better employment deal (Fowler, 1999). However it could also be; better opportunities, a chance to work with a particular person, or location issues such a commuting distance (Torrington et al, 2005). The two main aims for employers are to take are to ensure they know what the competition is offering, so they can be realistic and competitive (Meighan, 2000). Its also important that an employee understand what he has and appreciates it. 2.7 Understanding Labour Turnover Torrington et al (2005) stress that there is very little an organisation can do to manage turnover unless they understand the reasons for it. 2.7 Costs of Labour Turnover In monetary term labour turnover cost the industry  £414 million in 2008/2009 (People 1st, 2009). However this has a decreased since 2000 according to Boella (2000) who stated that labour turnover was  £430 million. The formula used to calculate labour turnover is the number of employees who left during a period divided by the average number of employed during a period, times by 100 and represented as a percentage. Boella (2000) identified that although the results of this formula givers a labour turnover percentage, it does not give any indication of productivity of the staff, so it is best to monitor both. Lashley and Lincoln (2003) state that there are a number of ways to determine the cost of labour turnover, yet the prevalent statistic used compares the number of leavers to the number to the normal component of staff. Whilst this is easier and quicker to calculated, it is less accurate and doesnt take into consideration the seasonality of an organisation, and giving no indication of the amount of time spent by an employee at the organisation Meighan (2000). Torrington et al (2005) suggests that labour turnover represents both direct and indirect costs. Direct costs include advertising, travel expense, marketing, additional staff overtime pay, interview time (Boella, 2000: Lashley and Lincoln, 2003 and Mullins, 1998). These cost are easily calculated and visible. Indirect costs associated with labour turnover include loss of leadership, low levels of staff expertise, reduced productivity, increased wastage and reduce customer satisfaction (Boella, 2000: Mullins, 1998: Taylor, 2005 and Torrington et al 2005). These intangible costs affect the remaining staff more, and are difficult to put a price on. 2.9 Conclusion The three common reasons stated by Torrington et al (2005) for leaving include: Dissatisfaction with the conditions of work, especially house. A perception that they were not being given sufficient career development opportunities A bad relationship with their immediate supervisor. The nature of the industry itself (seasonal, limited career structures). The nature of individual units (location, size, staff/work ratios). The nature of individual managers (lacking formal management training, acceptance of high labour turnover). High proportion of worker from the secondary labour market. Torrington et al. CHAPTER 3 AN ANALYSIS OF DIFFERENT APPORACHES TO INDUCTION 3.1 Introduction The following chapter provides a definition staff induction and socialisation and its importance, highlighting the key areas and effectiveness. The aim is to investigate the theories behind the induction process and its requirements. An employee is an ambassador to their organisation, representing them through their attitudes and behaviour, how they act is partly down to the organisational culture (Sommerville, 2007, p 47). How employees understand and learn these attributes begins with staff induction and socialisation. In HRM literature, organisational socialisation is widely recognised as a key process ensuring new employees can be efficient and effectively integrated within the organisation (Taylor, 2006). Both induction and socialisation are entwined together. Staff induction practices govern unconsciously or deliberately organisational socialisation (Torrington et al, 2005). With the continuous process whereby new recruits are brought into the firm is an important element of HRM practice. If executed well it can help to retain the new employee and reduce staff turnover (Lashley and Best, 2002). 3.2 Performance Management Systems There have been a significant number of studies over the last 15 years investigating the link between HRM and organisational performance. These have focused on the extent to which (if at all) high commitment or best practice HRM may lead to improvements in worker or organisational performance (Taylor). The idea is that particular bundles of HR practices have the potential to contribute improved employee attitude and behaviours, lower levels of absenteeism and labour turnover, higher levels of productivity, quality and customer service in all types of organisations (Sommerville). Performance management aims to directly link together individual goals, departmental purposes and organisational objectives (Torringon et al). Examples of performance management systems include; recruitment and selection, training and development. Armstrong and Baron (2007, p7-8) defined a performance management system: Communicates the organisation vision and objectives to all employees Set departmental and individual performance targets linked to organisational objectives. Uses formal review procedures to communicate performance requirements. Conducts formal reviews of progress Uses the review process to identify training, development and reward outcomes. Evaluates the whole process. 3.3 Induction Training Starting a new job can be a stressful process, wondering if you will fit in with your new co-workers, if everything is as good as advertised. Whilst some nerves are inevitable, helping to reduce them and making the new employee feel welcome are vital in retaining new comers (Lashley and Best, 2002). The term ‘induction can be interpreted in several ways, however in the generally used in the context of the workplace to describe the entire process of an adjusting to their new working environment and jobs (CIPD, 2010). Whenever new employees join an organisation there is always a period of learning and adaptation before they become fully effective (Meighan, 2000). Partly, this involves finding out about the practicalities of the job and facts about pay, other employee benefits and the organisations rule and regulations (Fowler, 1999). But there is also the need to understand the less tangible but very powerful influence of ‘the way we do things around here or culture (Meighan, 2000). Every organisation has its own culture and new employees are unlikely to be fully effective or feel comfortable in their work until they have absorbed this cultural influence and adjusted to it (Taylor, 2006). Induction has a number of distinct purposes (Armstrong, 2007), all of which are concerned with preparing the new employees to work as effectively as possible and as soon as is possible in their new jobs. The induction is the initial process of learning and adjustment (Fowler, 1999). Meighan (2000, p5) went further and defined induction as ‘a planned, systematic process to help new employees settle into their jobs, quickly, happily and effectively. Marchington and Wilkinson (2008) suggest that induction covers a variety of informal and formal programmes. From simple greeting and showing a new employee to their work station to personalised programme away from the immediate place of work. However some academics (Lashley and Rowson, 2000: Marchington and Wilkinson, 2008: Skeates, 1991: Storey, 2007: Tayeb, 2005) believe that the induction process begins with recruitment and selection. Here the employee and employer can discuss expectations and understand whats realistic, assisting in reducing a mismatch the job role, benefits and expectations. In accordance with these views induction (Skeates, 1991, p16) has been describe as being any arrangement made to familiarise the new employee with the organisation, safety rules, general conditions of employment and the department in which they are involved in. Boella (2000) reinforces this point by suggesting that the induction processes also involve welcoming the new recruit and introducing them to their new colleagues, and that the process starts from the initial contact with the employer. Irrespective of whether or not a structure process is in place, all employees go through an induction phase. In many organisations especially those that do not have a specific human resource department or manager, this may be little more than greeting before being shown to their workplace. New employees may be told to ask questions if needed and are left to get on with the job as it is assumed they already posses the skills to complete the task. Sometimes a rite of passage may consist of a joke, (go and get me a long weight), with little attempt to explain anything about the company from its mission statement to direction. Even information regarding health and safety or disciplinary procedures. However this can leave the employee feeling isolated and confused, unaware of the rules, causing them to leave. Each problem represents a cost to the employer; poor quality of work, unproductive new starter, time spent on disciplinary issues, re advertising the job. In these circumstances it i s unlikely the employer will develop commitment and loyalty (Taylor, 2006). Organisation socialisation is one of the fundamental processes that define how cultures emerge (Tuttle, 2002). It underpins the social structures (Cable and Parsons, 2001) that shape not only how social actors interact but also the boundaries of action and the rules of engagement. In the context of organisations, socialisation is a process that significantly shapes their way of core practices shape how things are done and why they are done in a particular way (Torrington et al, 2005). Staff induction and socialisation (Ardts et al, 2001) are central to the replication of an organisation because they enable new individuals to become functional members of a group. Ardts et al (2001, p159) defines organisation socialisation as â€Å"the learning process by which newcomers develop attitudes and behaviour that are necessary to function as a fully fledged member of the organisation†. This extends the process of inducting a new employee to the organisation by imprinting the norms, expectations and behavioural patterns. It focuses on the interaction between a stable social system and the new members entering it. Successful socialisation is the transformation from an outsider to participating effective insider (Copper-Thomas and Anderson, 2006, p492). 3.3.1 Psychological Contract One of the major influences on behaviour at is the psychological contract (Boella, 2000). The contract refers to the unwritten expectations (Taylor, 2006) of the employer and employees have of their relationship. What each other expects to be delivered, what they expect from the working experience, how they expect to be treated (Marchington and Wilkinson, 2005: Meighan, 2000: Taylor, 2006). These expectations exist only in the head of employees, but this does not mean they should be underestimated (Torrington et al, 2005). Like written contracts they can be breached, broken or changed without consent, resulting in dissatisfaction, de-motivation, and higher levels of staff turnover (Armstrong, 2007). The loyalty and commitment from the employee are lost because of a perceived injustice or a disloyal breach of their contract (Boella, 2000). Riley (2000) stated that the old contract characterises the yester year workforce; focusing on building long term relations, job security and career progression in exchange for loyalty. The ‘new contract has modified to typify the current flexible, transactional workforce (Taylor, 2007). The employer offers employment for a limited period, with some development opportunities in exchange for the employee completing a set of defined duties to an agreed standard until a better offer arises. As a result there is greater flexibility with less commitment (Tanke, 2001) and loyalty, as employees see their employment as short term and an opportunity to make money, develop skills and experience (Torrington et al, 2005), increasing the likelihood of staff turnover. In recent years much debate has been raised on the subject of the old versus the new contract (See TABLE *****) The Old Psychological Contract EMPLOYEE OFFERS EMPLOYER OFFERS Loyalty Security Commitment Future career

Essays --

New Technologies in Modern Architecture and Design â€Å"Technology† is a terminology which has just entered the contemporary literature of architecture. Despite the high significance and the widespread use of it, there is much ambiguity and inconsistency in the use of this term. It is certainly arguable that during the past decades, the world has been undergoing the most significant period of technological innovation and global restructuring since the first decades of the 20th century. Cities have always been centers of civilization and vitality that, through the years, have led to human progress through material and scientific advances. Globalization is now an unstoppable historical process led by technological change and involving the dissemination of science and new technologies. Rapid urbanization has only been made possible by the introduction of modern technology as a part of the development process. The use and application of modern technologies in designing and building well-lit constructions has a variety of definitions and interpretations. Indeed, architects contend that such uses of technology depend on conditions, background and the presumptions of the design and the location. The use of technology to design and build constructions with respect to their conditions and situations is considered to be a novel and particular concept in modern architecture. The accurate and appropriate use of technology can result in the creation of perfect and flawless buildings. Hence, the sensible use of technology along with the application of local civilization is the resolution to the current challenges in architecture. Complex construction and advanced building design require a mastery of structures and construction technology, and as ... ...theatres, complexes, restraunts, hotels and resorts, airports etc. The scope is so diverse in today’s times, that the aspects of Interior Design encompass all those contexts and more. This has led to Interior Design’s fragmentation into a variety of specialised micro-disciplines such as Traditional Design, Contemporary Design and Modern Design and further sub-divided into different categories like Residential Design, Office Design, Retail and Commercial Design, and Hospitality Design. What is Traditional Design? Traditional design often uses heavy, bold furnishings with rich earth tone colours such as brown, gold, or dark green. Traditional design is very ornate also, for example: claw foot chairs and embellished four post beds. Traditional pieces draw their inspiration from 18th and 19th century Europe. If you can picture it in a castle, it is likely traditional. Essays -- New Technologies in Modern Architecture and Design â€Å"Technology† is a terminology which has just entered the contemporary literature of architecture. Despite the high significance and the widespread use of it, there is much ambiguity and inconsistency in the use of this term. It is certainly arguable that during the past decades, the world has been undergoing the most significant period of technological innovation and global restructuring since the first decades of the 20th century. Cities have always been centers of civilization and vitality that, through the years, have led to human progress through material and scientific advances. Globalization is now an unstoppable historical process led by technological change and involving the dissemination of science and new technologies. Rapid urbanization has only been made possible by the introduction of modern technology as a part of the development process. The use and application of modern technologies in designing and building well-lit constructions has a variety of definitions and interpretations. Indeed, architects contend that such uses of technology depend on conditions, background and the presumptions of the design and the location. The use of technology to design and build constructions with respect to their conditions and situations is considered to be a novel and particular concept in modern architecture. The accurate and appropriate use of technology can result in the creation of perfect and flawless buildings. Hence, the sensible use of technology along with the application of local civilization is the resolution to the current challenges in architecture. Complex construction and advanced building design require a mastery of structures and construction technology, and as ... ...theatres, complexes, restraunts, hotels and resorts, airports etc. The scope is so diverse in today’s times, that the aspects of Interior Design encompass all those contexts and more. This has led to Interior Design’s fragmentation into a variety of specialised micro-disciplines such as Traditional Design, Contemporary Design and Modern Design and further sub-divided into different categories like Residential Design, Office Design, Retail and Commercial Design, and Hospitality Design. What is Traditional Design? Traditional design often uses heavy, bold furnishings with rich earth tone colours such as brown, gold, or dark green. Traditional design is very ornate also, for example: claw foot chairs and embellished four post beds. Traditional pieces draw their inspiration from 18th and 19th century Europe. If you can picture it in a castle, it is likely traditional.

Another Heart of Darkness Essay -- essays research papers

Ignorance and Racism Joseph Conrad develops themes of personal power, individual responsibility, and social justice in his book Heart of Darkness. His book has all the trappings of the conventional adventure tale - mystery, exotic setting, escape, suspense, unexpected attack. Chinua Achebe concluded, "Conrad, on the other hand, is undoubtedly one of the great stylists of modern fiction and a good story-teller into the bargain" (Achebe 252). Yet, despite Conrad's great story telling, he has also been viewed as a racist by some of his critics. Achebe, Singh, and Sarvan, although their criticisim differ, are a few to name. Normal readers usually are good at detecting racism in a book. Achebe acknowledges Conrad camouflaged racism remarks, saying, "But Conrad chose his subject well - one which was guaranteed not to put him in conflict with psychological pre- disposition..." (Achebe, 253). Having gone back and rereading Heart of Darkness, but this time reading between the lines, I have discovered some racism Conrad felt toward the natives that I had not discovered the first time I read the book. Racism is portrayed in Conrad's book, but one must acknowledge that back in the eighteen hundreds society conformed to it. Conrad probably would have been criticized as being soft hearted rather than a racist back in his time. Conrad constantly referred to the natives, in his book, as black savages, niggers, brutes, and "them", displaying ignorance toward the African history and racism towards the African people. Conrad wrote, "Black figures strolled out listlessly... the beaten nigger groaned somewhere" (Conrad 28). "They passed me with six inches, without a glance, with the complete, deathlike indifference of unhappy savages" (Conrad 19). Achebe, also, detected Conrad's frequent use of unorthodox name calling, "Certainly Conrad had a problem with niggers. His in ordinate love of that word itself should be of interest to psychoanalysts" (Achebe 258). Conrad uses Marlow, the main character in the book, as a narrator so he himself can enter the story and tell it through his own philosophical mind. Conrad used "double speak" throughout his book. Upon arriving at the first station, Marlow commented what he observed. "They were dying slowly - it was very clear. They were not enemies, they were not cri... ... (Singh 278). Conrad didn't write his book to the extreme of racism. Overall, the natives appeared better humans than the Europeans in Heart of Darkness. Conrad's ignorance led to his conformity to racism. His ignorance of not completely "granting the natives human status" leads him to social categorization. C. P. Sarvan wrote in his criticism, quoting Achebe, "Racism and the Heart of Darkness," "Conrad sets up Africa 'as a foil to Europe, a place of negations... in comparison with which Europe's own state of spiritual grace will be manifest.' Africa is 'the other world,'..." (281). Achebe, Chinua [An Image of Africa: Racism in Conrad's Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988. Conrad, Joseph Heart of Darkness 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical, 1988. Sarvan, C. P. [Racism and the Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988. Singh, Frances B. [The Colonialistic Bias of Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988. Another Heart of Darkness Essay -- essays research papers Ignorance and Racism Joseph Conrad develops themes of personal power, individual responsibility, and social justice in his book Heart of Darkness. His book has all the trappings of the conventional adventure tale - mystery, exotic setting, escape, suspense, unexpected attack. Chinua Achebe concluded, "Conrad, on the other hand, is undoubtedly one of the great stylists of modern fiction and a good story-teller into the bargain" (Achebe 252). Yet, despite Conrad's great story telling, he has also been viewed as a racist by some of his critics. Achebe, Singh, and Sarvan, although their criticisim differ, are a few to name. Normal readers usually are good at detecting racism in a book. Achebe acknowledges Conrad camouflaged racism remarks, saying, "But Conrad chose his subject well - one which was guaranteed not to put him in conflict with psychological pre- disposition..." (Achebe, 253). Having gone back and rereading Heart of Darkness, but this time reading between the lines, I have discovered some racism Conrad felt toward the natives that I had not discovered the first time I read the book. Racism is portrayed in Conrad's book, but one must acknowledge that back in the eighteen hundreds society conformed to it. Conrad probably would have been criticized as being soft hearted rather than a racist back in his time. Conrad constantly referred to the natives, in his book, as black savages, niggers, brutes, and "them", displaying ignorance toward the African history and racism towards the African people. Conrad wrote, "Black figures strolled out listlessly... the beaten nigger groaned somewhere" (Conrad 28). "They passed me with six inches, without a glance, with the complete, deathlike indifference of unhappy savages" (Conrad 19). Achebe, also, detected Conrad's frequent use of unorthodox name calling, "Certainly Conrad had a problem with niggers. His in ordinate love of that word itself should be of interest to psychoanalysts" (Achebe 258). Conrad uses Marlow, the main character in the book, as a narrator so he himself can enter the story and tell it through his own philosophical mind. Conrad used "double speak" throughout his book. Upon arriving at the first station, Marlow commented what he observed. "They were dying slowly - it was very clear. They were not enemies, they were not cri... ... (Singh 278). Conrad didn't write his book to the extreme of racism. Overall, the natives appeared better humans than the Europeans in Heart of Darkness. Conrad's ignorance led to his conformity to racism. His ignorance of not completely "granting the natives human status" leads him to social categorization. C. P. Sarvan wrote in his criticism, quoting Achebe, "Racism and the Heart of Darkness," "Conrad sets up Africa 'as a foil to Europe, a place of negations... in comparison with which Europe's own state of spiritual grace will be manifest.' Africa is 'the other world,'..." (281). Achebe, Chinua [An Image of Africa: Racism in Conrad's Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988. Conrad, Joseph Heart of Darkness 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical, 1988. Sarvan, C. P. [Racism and the Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988. Singh, Frances B. [The Colonialistic Bias of Heart of Darkness.] Heart of Darkness. By Joseph Conrad 3rd ed. Ed. Robert Kimbrough. New York: Norton Critical 1988.

Describe the Potential Effects of Discrimination

Applied Business Unit 8: Business Planning Task 6 Worksheet Task Six: Financial Planning YOU CANNOT START AND/OR COMPLETE THIS WITHOUT A FINAL SALES FORECAST AND A LIST OF ALL YOUR OPERATIONAL COSTS ————————————————- Lesson breakdown ————————————————- Lesson 1: †¢Introduction to Financial Planning and how do we create an integrated plan: Focus on cash flow forecast using operations plan ————————————————-Lesson 2+3: Cash flow analysis and develop aims and objectives; ————————————————- Introduce ‘ILP-time-off’ work to do  Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- Lesson 4: Cash flow revisions, Problem spotting based on cash flow and develop aims and objectives ————————————————- Lesson 5: Profit and loss account and Financial Ratio Analysis and developing aims and objectives ————————————————- Lesson 6: Break Even analysis and then develop aims and objectives ————————————————-Lesson 7: Final Amendments to Financial Planning; Problem spotting based on P&L, ratio analysis, break-even and develop plan Task 6 Brief Overview * In this section, you are going to produce financial documents for yo ur business proposal. You will need to use the sales forecasts and operations plan that you produced earlier. This section is important as you are attracting investment and assessing the viability of your plan * Calculate, analyse and evaluate the following; Use these subheadings in your report * Size and duration of budget * Start-up costs Running costs * Cash flow forecast * Break even analysis * Financial ratios * Profit and loss * Analyse all your financial documents showing detailed consideration for the Aims and Objectives: * Are they achieved? * If not what are the possible problems this can cause your business? * Can you think of any solutions to help you to overcome these problems so that you could achieve your aims? SUBMISSION OF TASK 6 The following is to be submitted as a Word document Use the following headings for your submission of your Financial Plan 1st submission.Copy and paste these into your final document: Submit all work on moodle for deadline 3rd December 2010 (4:15PM) 1. Financial Planning (main heading) 2. Cash Flow Forecasting Table (MB4 students need to submit 2 (+? )CFF Tables) a. Cash Flow Forecasting analysis (of each CFF produced) 3. Profit and Loss statement and Financial Ratios Table (MB4 students need to submit 2 (+? )P&L and F/R Tables) b. Profit and Loss statement and Financial Ratios analysis (of each P&L and F/R produced) 4. Breakeven Table (MB4 students need to submit 2 (+? )Breakeven Tables) . Breakeven analysis (of each Breakeven produced) TASK 6 FINANCIAL PLANNING CONTENT/ASSESSMENT CHECKLIST CRITERIA CASH FLOW FORECASTING| 1. Start-up budget: | a) 12 monthly graph (Cut and paste information from your cash flow forecast for your first graph)| b) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin an d develop business idea| IV.Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 2. Running costs: | a) 12 monthly graph (Cut and paste information from your cash flow forecast for your first graph)| b) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III.Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 3. 12 monthly Cash Forecast: 1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I. You must have an in-depth explanati on of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III.Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 4. MB4 12 Monthly Cash Forecast: 2: A working example of your solutions to your identified problems in CFF1| a) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II.Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to co nsider in light of this new data? | PROFIT AND LOSS ACCOUNT| 5. Profit and Loss Account 1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I. You must have an in-depth explanation of how these could achieve the ims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 6. MB4 Profit and Loss Account 2: A worked example of your solutions to your identified problems in P&L1| b) Analysis needs to consider:| VI.You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | VII. Research used to underpin and develop aims and objectives/ownership/key personnel| VII I. Research used to underpin and develop business idea| IX. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| X. What changes to your original idea/USP/aims do you have to consider in light of this new data? | FINANCIAL RATIOS| 7. Financial Ratios: Gross and Net Profit for P&L account 1| a) Analysis needs to consider:|I. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 8. MB4 Financial Ratios: Gross and Net Profit for P&L account 2| a) Analysis needs to consider:| I.You must have an in-depth explanation of how these could a chieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | BREAKEVEN| 9. Breakeven table and calculation:1 : Your initial forecast used to help identify problems| a) Analysis needs to consider:| I.You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | II. Research used to underpin and develop aims and objectives/ownership/key personnel| III. Research used to underpin and develop business idea| IV. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| V. What changes to your original idea/USP/aims do you have to consider in light of this new data? | 10. MB4 Breakeven table and calculation:2: A working example of your solutions to your identified problems| b) Analysis needs to consider:|VI. You must have an in-depth explanation of how these could achieve the aims and objectives of your business proposal. | VII. Research used to underpin and develop aims and objectives/ownership/key personnel| VIII. Research used to underpin and develop business idea| IX. Identify problems and solutions with your plan (develop it) and also your aims and objectives:| X. What changes to your original idea/USP/aims do you have to consider in light of this new data? | TASK 6 ASSESSMENT GUIDE: HOW TO ACHIEVE THE BEST RESULTS? * You are assessed in Task 6 for BOTH AO2 and AO3 marks AO2 is marked out of 22 marks and all learners should be aiming for a minimum of MB4 which is 17/22 marks * AO3 is marked out of 14 and at this stage all learners should be aiming for a minimum of MB4 which is 11-14 marks. * We will award high marks for those learne rs who can: * Purposefully select data from a wide range of sources, * Analyse the problem and possible solutions * Develop their plan based upon research. * Give an in-depth explanation of how the marketing plan could achieve the aims and objectives of the business proposal. AO2 ASSESSMENT OBJECTIVES MB1| MB2| MB3| MB4| 2 3 4 5| 6 7 8 9 10| 11 12 13 14 15 16| 17 18 19 20 21 22| A business plan which includes aspects of the marketing plan. A description of how this supports the aims and objectives of the business proposal. | A business plan which contains the marketingPlan. A basic explanation of how this contributes to achieving the aims and objectives of the business proposal. | A business plan which contains a developed marketing plan. An explanation of how this could achieve the aims and objectives of the business proposal. | A business plan which contains comprehensive marketing plan.An in-depth explanation of how this could achieve the aims and objectives of the business propo sal. | * Aspects of the components are produced * Superficial coverage of aims and objective| * The components are complete * Aims and objectives are broadly considered| * The components are complete and developed * Beginning to target particular aims and objectives, but lacks precision| * The components are complete, developed and address the key parts of the problem * Targeting particular aims and objectives with precision| AO3 ASSESSMENT OBJECTIVES MB1| MB2| MB3| MB4| 2 3| 4 5 6| 7 8 9 10| 11 12 13 14| Collects some up-to-date data from a limited range of sources. Uses numerical and/or non-numerical techniqueson the collected data to provide a partial analysisof the requirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to identify some relevant elements of the business plan. | Selects some up-to-date data from a limited range of sources. Uses numerical and/or non-numerical techniques on selected data to p rovide a partial analysis of therequirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan.Uses the results of the analysis to outline a relevant business plan. | Selects relevant and up-to-date data from a range of sources. Uses appropriate numerical and/or non-numericaltechniques on selected data to provide a partial analysisof the requirements of:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to develop a relevant business plan, which considers the aims and objectives, form of ownership and key personnel required. Selects relevant and up-to-date data from a wide range of sources. Uses appropriate numerical and/or non-numericaltechniques on selected data to analyse the requirementsof:†¢ the marketing plan†¢ the operations plan†¢ the financial plan. Uses the results of the analysis to develop a consistentand integrated business plan, showing detailedconsideration o f the aims and objectives, form of ownership and key personnel required. | MB1| MB2| MB3| MB4| 1 2 3| 4 5 6| 7 8 9 10| 11 12 13 14|Collects data from a limited range of sourcesProcesses dataIdentifies some elements of the plans components| Selects data from a limited range of sourcesProcesses selected dataOutlines components of the plan| Purposefully selects dataAnalyses key parts of the problem or practical solutionsDevelops components of the plan| Purposeful selects data from a wide range of sourcesAnalyses key parts of the problem AND practical solutionsDevelops integrated components of the plan| Follow the below detailed overview of each task for advice and help on how to achieve MB4 for Task 6Task 6 MB4 Detailed Overview CASH FLOW FORECAST, ANALYSIS AND DEVELOPMENT Lesson 1: Task 1 1. Download cash flow forecast from moodle 2. Complete pre start up budget (SEE CASE STUDY!! ) 3. Complete pre start-up costs calculated from T5 4. Insert monthly sales figures from final sales forec ast 5. Insert monthly fixed costs calculated from T5 6. Insert monthly variable costs from T5 Lesson 2+3: Task 2 Analysis * All marks gained with this task is from your analysis of your financial data; not from your reports themselves. ————————————————-Identify problems and solutions with your plan (develop it) and also how your aims and objectives can/can’t be achieved Learners can achieve MB4 in A02/A03 by following the Financial Planning Assessment Objectives which requires them to identify problem areas and developing practical solutions to consider alternative perspectives. What you will need to include will depend on your individual business proposal. You need to identify areas of weakness such as high fixed costs, start up costs? * Perhaps you need a cash injection by selling equity to help you pay for start up costs? It could be you source alternative suppli ers for your variable costs or project that you will pay 30 days later which is to improve your working capital. * What is happening to the figures in the net cash flow cells, are you losing money each week? * This is a cash flow negative situation. * Or are you cash flow positive? * How long before you are cash flow positive? * Why is this so long? Lesson 3+4: Task 3 MB4- Revised cash flow forecast * MB4- You need to produce a refined Cash Flow forecast based upon the analysis of the key issues identified in T6 task 2. This is to include the developments you have made. Label this Cash Flow Forecast 2. * You need to analyse CFF2: * Identify problems and solutions with your plan (develop it) and also if your aims and objectives can be met- How/Why? PROFIT AND LOSS and FINANCIAL RATIOS Lesson 4: Task 1 1. Download Profit and loss template from moodle 2. Insert sales for year 1 from your final sales forecast 3. What is the total cost of these sales? How much were the total variable cos ts related to the output. These are costs such as ingredients, packaging or price of the club. Put this figure in Direct costs/cost of materials sold 4.Calculate A-B to = C which is the identification of Gross Profit 5. Insert all other costs for the year in the respective headings, adding headings where needed. 6. Add up all your total overheads and insert this figure in D 7. Calculate C-D to identify Net Profit or Loss Figure 8. Calculate your Gross Profit MB4- Task 1 b Revised PROFIT AND LOSS and FINANCIAL RATIOS You must now repeat this action again for the second cash flow forecast figures * You need to analyse P&L2 AND F/R2: * Identify problems and solutions with your plan (develop it) and also if your aims and objectives can be met- How/Why?Task 2= Financial Ratios Overview Profitability ratios are a key source of information for both investors and business planners. They provide a clear image of the business both in terms of your costs and profit. A strong ratio can be t he difference between investment and failure. Task A 1. Use the figures in your first profit and loss account to calculate Gross Profit Ratio. ————————————————- Gross Profit margin: ————————————————- A measurement of how much profit the business has made on its buying and selling activities. ———————————————— How good a business is at trading. ————————————————- Gross Profit margin= Gross Profit/turnover (Sales Revenue) X 100 (%) ——————————————†”—- The higher the % the better, e. g. ————————————————- A GPM of 45% means that for every ? 1 of sales, the firm makes 45p in gross profit 2. Use the figures in your first profit and loss account to calculate Net Profit Ratio. ————————————————- Net Profit margin: ———————————————— It is a measure of how much overall profit the business has made after taking into account all relevant costs that have been incurred. ————————————————- Net profit margin= net profit/turnover (sales revenue) X 100 —————â₠¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- The higher the % the better, e. g. ————————————————- A NPM of 45% means that for every ? 1 of sales, the firm makes 45p in pure profit Task B MB4 Complete for 2nd profit and loss account if constructed CFF2 Task 3= Analysis You must now undertake a critical analysis of each profit and loss account with clear reference and commentary related to the key issues such as profit or loss, gross profit, overhead costs, GPM, NPM etc * Clearly relate back to the businesses achievement of its aims and objectives (explain HOW AND WHY THEY ARE ACHIEVED), developing or revising your aims where necessary in your business plan. * Make clear reference to the FIGURES from your profit or loss, gross profit, overhead costs etc * You must undertake a critical analysis of each financial ratio * Identify and pr oblems and/or solutions: Are you profitable? If so†¦ by how much? * Can you grow? * Which costs are too high? * How can you improve your profitability? * What are the possible knock-on effects of these solutions for your business> * Which costs could be reduced? If so what would the possible impact of this be on your business idea? * Which costs cannot be reduced further? Why? What problems does this bring up? * How does a cash injection help or hinder the financial ratios/P&L? BREAK EVEN Task 1 1. Download the Breakeven table from Moodle 2.Input into the table your Annual Revenue (TR), annual FC and VC (with total FC and VC), and total costs. 3. You must then divide the total variable costs by the number of units you are selling in a year ( units can be the bottles/ no of clubbers you expect/ etc in a year) 4. This will give you the variable cost /unit 5. You must now calculate the break even OUTPUT point using the formula: 6. MB4 Calculate Break Even 2 from your revise d financial documents 7. All marks gained with this task is from your analysis of your financial data; not from your reports themselves. Identify problems and solutions with your plan (develop it) and also if your aims and objectives can/cant be achieved * Do you break even? * If so at what output? * Work out from your sales forecast when you will reach this breakeven output level * What aims can be achieved? How? Why? * If you don’t breakeven; why not? * You need to identify areas of weakness such as high fixed costs, start up costs, raw materials, low selling price? * What aims cant be achieved? How? Why? * What could you do to solve this breakeven problem? (hint: see changing B/E variables section) 8.MB4 analyse the effect of changing variables (FC, VC and/or Price) on the break even figure. * Calculate the effect of changing variables (FC, VC and/or Price) on the break even figure: * Analyse these break even scenarios and link to your aims and objectives. * What is the ef fect on breakeven level? * What are the potential problems you have identified with your break even? * Are there any solutions you can recommend to the business? * Such as reducing selling price? * Increasing selling price? * Increase advertising to increase sales? Reducing fixed or variable costs further? etc

Muscular Disorders Case Report Essay

  Case: A mother presents with her 13 y/o son with a history of frequent falls, difficulty getting up from a lying or sitting position, trouble jumping, large calf muscles and poor grades in school. Based on the description and symptoms given, the likely diagnosis would be Duchenne’s muscular dystrophy, or DMD; although DMD and its symptoms tend to show up at an earlier age but not always. This type of muscular dystrophy is the most common and severe form of the dystrophinopathic diseases.   Dystrophinopathic diseases are muscular dystrophies that are of a genetic nature caused by a deficiency in the protein dystrophin. This protein is vital to muscle function and contraction. In the case of DMD, there is a mutation in the gene, called the DMD gene, responsible for producing dystrophin causing a deficiency. This gene mutation is X-linked recessive and is inherited. This means that females in the family carry the gene mutation and can pass is on to their offspring male or female, but it is expressed in the males. DMD is usually diagnosed when a young boy shows signs of muscle weakness and there is a family history of the disease. Per Genome (2010), â€Å"a muscle biopsy for dystrophin studies can also be done to look for abnormal levels of dystrophin in the muscle.† Genome (2010), also states that â€Å"genetic testing on a blood sample for changes in the DMD gene can help establish the diagnosis of Duchenne’s muscular dystrophy without performing a mus cle biopsy.† For most individuals, a combination of these testing methods is used to confirm a diagnosis of DMD. There is no known cure for DMD. Treatment involves treating the symptoms and keeping the patient as comfortable as possible. Medline (2012) says that â€Å"steroid drugs can slow the loss of muscle strength and may be started when the child is diagnosed or when muscle strength begins to decline.† Other drugs, such as Albuterol, can be used to control breathing problems that occur in the later stages of the disease and drugs to help with heart functions are prescribed to help control any cardio symptoms that may be present. The prognosis for individuals with DMD is bleak; it is a rapidly progressive disease and patients with DMD usually surrender to the disease or complications from it in their 20’s or 30’s, sometimes even earlier. I grew up with a family next door to me in which the two oldest boys had DMD. The disease eventually took both of th eir lives. The oldest boy did live  long enough to graduate from high school but the younger of the two died from complications when he was 16. It was horrible for the family to stand by and watch their sons slowly decline and eventually die. This disease continued to plague their lives when the daughters passed it on to their boys and probably still plagues them today. There have been great strides in the field of research in regards to DMD but as of yet no cure has been found. Hopefully one day, there will be a cure for this devastating, debilitating disease and no more families will be forced to watch their children die right before their eyes.