Author: chris

Pure, Per Se and Natural Monopolies

Exports refer to goods and services that are produced domestically and sold to other countries while imports refer to the goods and services from another country that are sold in the country (Mankiw & Taylor, 2006). For instance, the movie industry in the United States is huge and it makes up one of the major exports (Mankiw, 2008). One of the most imported products in the country is petroleum. The US is a major international market because it has a high number of imports and exports. The country’s main imports are crude oil while the main exports are electrical machinery. Countries choose to import the goods that it does not have. For instance, some countries do not have suitable land for growing food and they are forced to import food from other countries. Some of the factors that influence the country’s imports and exports include, price of the commodities, consumers tastes and preferences, the country’s exchange rate, cost of transportation and government policies (Mankiw & Taylor, 2006). Countries that choose to import products that are available locally do so to enhance trade between its trading partners and to bring diversity in the market. Countries export commodities as a way of dealing with surplus and enhancing the economy.

The country benefits from buying domestic products instead of importing. This is because when people buy goods that are manufactured in the country, it strengthens the local industries and this creates jobs for the people. The fashion industry in the country has received a lot of support from the local market. This has enabled it to experience a significant growth and recognition and this has worked to strengthen the economy. When people choose to buy imported goods, they strengthen the markets of the economies producing those goods at the expense of the local industry. Many people suffer because the local industries hire fewer people as they try to minimize costs. Buying goods that are produced domestically means that the money remains within the country and this strengthens the economic condition of a country. That money will be used to develop the country and it will create better living conditions for the people. Because of this, the living standards of people improve.

Local producers are more aware of what the people need since they are in the same region. They will therefore produce goods that meet the customer’s expectations and the set quality standards. One of the disadvantages of buying imports is that they sometimes fail to meet local expectations and because of this, consumers sometimes have to use substandard goods. These goods may be harmful and may cause various problems to consumers’ health. The problem also persists in the fashion industry where some imports are made from poor quality materials. The consumer ends up spending money on commodities that will only last for a short time. Some of the countries use exploitative means such as child labor when they are producing goods. They also use substances that may cause environmental harm and this leads to environmental degradation. When consumers buy products from such countries, they continue to encourage them to continue with these practices. Consuming domestic products will however make them to lose markets and putting stringent rules will cause them to abandon such practices.

Buying products that are produced within the country has some benefits. Some raw materials are in abundant supply and this makes the commodities less expensive than the imports (Randy, 2010). The government should therefore ensure that local manufacturers are not exploited and that they get value for their investment. The government can do this by ensuring that it provides favorable conditions for doing business. One of the ways it can do this is reducing the taxes paid by the manufactures and reducing associated operational costs. This will encourage more people to produce goods locally and this will create local competition, which is necessary for economic growth.

References

Mankiw, G. N., & Taylor, P. M. (2006). Economics. United Kingdom: Cengage Learning EMEA

Mankiw, G. N. (2008). Principles of Economics. New York, NY: Cengage Learning

Randy (2010). Buying American on a budget. Retrieved from http://buyamericanchallenge.wordpress.com/2010/10/05/buying-american-on-a-budget/

We Sprout Solution (2011). Buy local and buy American. Retrieved from http://www.wesprout.com/business-startup/buy-local-and-buying-american

Agency Theory

Introduction/Scene Setting

Agency theory examines the relationship between various levels of management such as managers and board of directors. The nature of their relationship is that one party; the principle, assigns decision-making authority to another party; the agent. A conflict of interest usually arises between these two parties, as they may each have different goals and objectives for the company. The agency problem is also caused by the fact that owners and managers are motivated by different factors and information might be asymmetric. Agency theory is important because it plays a crucial role during the company decision-making process, as it determines the extent to which the principal and the agent will be involved.

Aim/Purpose

This paper will examine how the relationship between the top management and board of directors of an organization can be explained using the agency theory. The paper will also examine the conflicts of interest that exist between these two parties. In addition to this, it shall also analyze the various problems that the agency role faces. An example can be seen in public corporations where the board of directors is elected by the owners of the company and the shareholders. The board of directors is charged with appointing managers. Therefore, the directors are the principals and the managers the agents. Therefore, managers are supposed to act on behalf of the Board of directors, but due to a conflict of interest, this is not always the case (Dutta & Reichelstein, 1999). A moral hazard takes place when there is an information asymmetry, such that the agent has more information than the principle. Hence, the agent may take advantage of the information asymmetry to act in his or her own interest at the expense of the company. Thus, this paper will try to interpret then relationship within the management and bring out the conflicts that occur in it like in the example above.

Body/Content

The board of directors of an organization sets the mission and goals of the organization and tasks the managers with the mandate of implementing them. They also assess the progress that the managers are making towards the attainment of the goals. The difference between these two parties is that the Board of Directors is appointed by the shareholders and therefore usually works towards their interests. The management on the other hand is more concerned with the progress and performance of the organization. The conflict therefore arises because the board of directors is interested with the maximization of the shareholder’s wealth while the management is interested in the maximization of the firm’s asset base, and hence their attention and efforts are centered on the organization’s performance (Gareth, 2010).

The board of directors is answerable to the shareholders and is therefore concerned with ensuring that the shareholder’s Earning per Share (EPS) is increasing and that the share prices are optimal. Managers on the other hand are also concerned with the maximization of shareholder wealth as long as the company itself is doing well. To this effect, managers and directors may differ over issues such as whether to plough back the organization’s profits, or pay it to the shareholders in form of dividends.

According to the agency theory, managers may also take advantage of company resources and funds to maximize their own utility. This may come in form of increasing their own salaries and perquisites at the expense of the shareholders. Managers may also propose that the company undertakes expansionary activities in order to credit themselves with the expansion. The expansion and growth of the company gives the managers a larger sphere of influence, greater job security and more influence over the board of directors, who they may control in order to award themselves higher salaries, increase their job tenure and making decisions that put the shareholder’s wealth at great risk (Kulkarni, 1988).

An agency problem may also exist between the board of directors and managers when the two parties have different attitudes towards risk. The directors for example may be risk adverse, wanting to approach investment opportunities with extreme caution in order to protect the shareholder’s wealth and assets of the firm whereas the managers may be risk-neutral, whereby they are willing to take calculated risks in order to increase the firm’s and shareholder’s wealth. This makes it difficult for them to arrive at a conclusion over how to utilize the organization’s funds, and may result in foregone investment opportunities or loss of funds due to investment in risky projects.

Ethical issues arise when an individual is unable to create a barrier between his own personal interests and the best interests of the firm. The managers may for instance want to increase their power and salaries at the expense of the firm and the board of directors may want to invest the firm’s resources in very risky projects, this challenges resort to the question of ethicality. Ethicality is closely related to the agency problem, as it provides a guide on the best course of action when the managers and directors have different interests pertaining to the firm and its shareholders. Ethics provides a guideline for helping to decide whether an action will work for the good of the firm or against it. Some of the issues that management and directors differ over are very challenging and complicated. Therefore, it is important that they refer to a code of ethics that will enable them to settle for the best and most suitable alternative. Unethical decisions and actions affect the organization and the stakeholders negatively, while ethical decisions work to the advantage of both the organization and the stakeholders.

The agency theory is based on the assumption that human beings prefer to act in their self-interest. It also assumes that in an organization the managers and board of directors are bound by limited rationality and are therefore likely to make decisions that do not serve the good of the shareholders (Gareth, 2010). According to the theory, the managers and board of directors are motivated by different factors and have different goals for the organization. The theory also asserts that within the organization, information is asymmetric in nature, and it is therefore not possible for both the top managers and the board of directors to hold the same level of information about the firm. It is assumed that the agents, who in this case are the top managers, are more informed about the firm, since they interact with its operations at a closer level than the board of directors. The other assumption of this theory is that the principal and the agent have different risk preferences and therefore do not agree on how to handle investment opportunities (Carlson, 2005).

The agency theory has been criticized for its assumptions that suggest that principals and agents are at a constant tug-of-war with each other and thus in reality may promote cynicism between these two parties in an organization. The theory has also been criticized for its assumption that principals and agents, who in this case are the board of directors and managers, are always driven by self-ambition and greed, and are therefore desire to use the organization’s resources for their own benefit. This assumption is detrimental to the performance of the company because it promotes suspicion and may even lead the suspected party to steal since it is already expected of them. The theory may also eventually result in a complacent and a nonchalant towards wrong management practices, because it suggests that all managers and board of directors are the same because they are self-seeking and having negative motives. This may create a culture of impunity within the organization. The reality is that not all managers and directors are self-interested; this should be the exception and not the norm. Any self-serving individuals should be dismissed from their positions. The theory has also been criticized for being too harsh and pessimistic. It lays emphasis only on the negative aspects of the human being and the organization. It is not constructive because it gives a blanket criticism and assumes that a human beings primary motivation is self-ambition, and hence all managers and directors are prone to using organizational funds for their own benefit. If this were true, then stealing would be so commonplace that it would be necessary for the organization to provide a contingency fund from which managers and directors would be able to satisfy their selfish motives. The theory also ignores the fact that not all individuals are driven by a desire for power and wealth. Many individuals are motivated by altruistic factors (Bowie & Freeman, 1992).

Research/Investigation

The agency theory is best illustrated by the case of Enron. The top managers of the organization led the company into bankruptcy through unethical financial practices. The board of the directors failed in their role of protecting and maximizing shareholder’s wealth through their negligence. The managers, who in this case are the agents, falsified the financial statements of the company in liaison with the company’s lawyers and accountants. The management gave a false reflection of the true value of the firm, in order to attract more investment, which the managers would channel into their own interests. The managers of Enron were therefore governed by their own self-interests as opposed to the interests of the shareholders (Carlson, 2005). Their behavior was unethical, because the shareholders were duped into believing that their investment would earn a substantial return on investment, while in reality the managers had concocted the actual figures, which were much lower than the ones portrayed. The board of directors did not play their role adequately, and entrusted the managers to make all the decisions pertaining to the company. The board of directors similarly acted in their own self-interest by acting negligently, and thus allowing for the collapse of the company. Some of the directors also participated in the embezzlement of the shareholder’s funds ( Freeman & Bowie, 2005).

Conclusion

The preceding discussion has revealed three key things about the relationship between top managers and the board of directors under the agency theory (Perry, 1979). Firstly, that the agency problem is brought about by conflicting interests, goals and motives between the two parties. Secondly, it also reveals that this agency problem results in each party seeking to satisfy their own selfish ambitions and motives, at the expense of the company and the shareholders (Carlson. 2005). Thirdly, it proposes that the best solution to this problem is the implementation of a code of ethics and values by which the management and board of directors should base their decisions and analyze the ethicality of their actions and decisions.

Recommendations/Applications

The agency theory can be applied in five areas within an organization. Firstly, it can be used to identify the areas of conflict of interest between the top managers and the board of directors or the management and the shareholders. It provides a point of reference for the individual to diagnose the agency problems of a company. Secondly, the agency theory also enables the agents and principal identify the level of asymmetry in the organizational information. They are hence able to correct the problem if the information is too asymmetrical. Thirdly, the agency theory can be used in setting the mission and goals of the organizations, the goals of the board of directors should be aligned to the goals of the top managers in order to prevent a situation where their goals are mismatched and thus, the shareholders suffer due to their lack of cohesive goal setting. Fourthly, the agency theory can be used to prepare a code of ethics for the organization, which will provide a guideline for the business practices to adhere to and thus prevent business malpractices. Fifthly, the agency theory can also act as a guide for decision making, it enables the top management and board of director decide on issues such as the correct capital structure, investment portfolio and asset mix, that will maximize the shareholder’s wealth (Harrell & Harrison, 1998). The agency problem may be solved by putting in place mechanisms that unite the interests of the principles to the interests of the agents. Such a mechanism includes rewarding the principles and agents in accordance with their performance.

 

 

 

 

 

 

References

Bamberg, G.., Spremann, K., & Ballwieser, W. (1989). Agency theory, information, and incentives. New York, NY: Springer Press.

Bowie, N. E. & Freeman, R. (1992). The Ruffin series in business ethics. Oxford, UK: Oxford University Press.

Brennan, M. J. & Trigeorgis, L. (1999). Project Flexibility, Agency, and Competition: New Developments in the Theory and Application of Real Options Analysis. Oxford, UK: Oxford University Press.

Carlson, M. F. (2005). Agency theory: is there a relationship between rewards and organizational commitment for adjunct faculty teaching in adult degree completion programs at Christian colleges. Upper saddle, N.J.: Nova Southeastern University.

Dutta, S. & Reichelstein, S. (1999). Asset valuation and performance measurement in a dynamic agency setting: Review of Accounting Studies. Oxford, UK: Oxford University Press.

 Freeman, B., & Bowie, R. (2005). Ethics and agency theory: an introduction. Cambridge, UK: Cambridge University Press.

Gareth, R. J. (2010). Organizational Theory, Design and Change. Upper Saddle River, NJ: Pearson Prentice Hall Publishing Co.

Harrell, A. & Harrison, P. (1998). Self-interest, ethical considerations and the project continuation decisions of managers who experience an agency conflict. Advances in Management Accounting. Hoboken, N.J.: Wiley Publishers.

Kulkarni, M. S. (1988). Managerial Finance. York, UK: Barmarick Publications.

Laffont, J. (2003). The Principal Agent Model: The Economic Theory of Incentives. NewYork, NY: Edward Elgar Publishing.

Mahoney, J. & Thelen, K. (2009). Explaining Institutional Change: Ambiguity, Agency, and Power. Cambridge, UK: Cambridge University Press.

Pacharn, P. (2008). Accounting choice and optimal incentive contracts: A role of financial reporting in management performance evaluation. Oxford, UK: Oxford University Press.

Perry, W. E. (1979). How to Manage Management. West Linton, UK: Vangard Press.

Raymond, J. (2010). Finance ethics : critical issues in theory and practice Hoboken, N.J. : Wiley.

Stremitzer, A. (2005). Agency theory: methodology, analysis : a structured approach to writing contracts. Barnsley, UK.
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Economics

Cost systems in an economy can be free (capitalist), fixed (socialist) or mixed. In fixed cost systems, the costs are controlled by the government. In a free economy, demand and supply establishes the costs and there is no control whatsoever from the government. In this economy, the question of what to produce and how much to produce, is determined by the cost mechanism. Sellers produce the goods that are demanded by the consumers and the amount of goods that meet their cost of production. Goods that are preferred by the consumer have a high demand and attract a higher cost. Lower costs of goods are an indication of the consumer’s lack of preference for those goods. Under the cost-mechanism system, social goods such as education are ignored as producers spend most of their resources producing goods that are more profitable. However, the free and fixed economies are extreme cases and most economies have a mixed cost system.

In competitive markets, no one influences the costs of goods and services. Everyone involved in the market determines the costs and the costs determine the produce. When the cost of a certain product is high, there will be more production of that product because the producers will want to gain the profits. However, fewer consumers will buy that product. Low costs encourage consumption but they discourage production. The forces of demand and supply determine the costs in a competitive market.

Demand refers to the amount of a product that a buyer is willing and able to buy at a given cost during a given period. There is a difference between demand and amount demanded. Amount demanded refers to a specific amount that the buyer desires and can afford to buy at one cost. There is a negative relationship between demand of a product and cost of that product. According to the law, other factors held constant, the higher the value of a good, the less the demand and the lower the cost, the higher the demand. The demand curve shows the negative relationship between the cost of a good and the amount demanded. Other factors can determine the goods demanded.

When the amount demanded increases, the demand curve shifts to the right and it shifts to the left when the amount demanded decreases. Decrease in demand is a situation in which at each cost, consumers plan to buy fewer goods. It is the reduction in the value of an additional unit of the good. Normal goods show that as the level of income increases, the demand increases and in this case, the demand curve shifts to the right. Normal goods refer to goods that consumers buy more of when their income increases. An inferior good shows that as income increases, demand decreases and in this case, the demand curve will shift to the left. An inferior good is a good that consumers buy less of when their income increases. Factors that can shift the demand curve include consumer income, cost of complements, cost of substitutes, population, preferences and future cost expectations. Changes in the cost of goods and services do not shift the demand or supply curve.

Supply refers to the amount of goods producers desire to produce and are able to sell at a certain cost. The law of supply shows a positive relationship between the amount supplied and the cost. According to the law of supply, the higher the cost of a good, the more that good will be supplied. If the cost is low, there will be less production of the good. Producers are willing to supply more goods when the cost is high because they will recover their costs and gain profits. Other than cost, other factors such as number of sellers, input costs, future cost expectations, cost of substitutes, cost of joint products and technology affect supply. Substitutes are goods used in place of another such as tea and coffee or butter and margarine. Joint products are products, which are used together such as cars and gas. The supply curve shifts to the right when there is an increase in supply and it shifts to the left when there is a decrease in supply.

The law of demand and supply asserts there is an adjustment in the cost of commodities so that the amount supplied of that good and the amount demanded are in balance. The economy is at equilibrium when demand and supply are equal. At this point, the amount demanded is equal to the amount supplied. In a competitive market, there is hardly a time when the market is at equilibrium. The costs of goods and services are constantly changing and this leads to disequilibrium. At this state, the market can have either excess supply or excess demand and it is determined by the competition from the sellers and buyers.

When the costs are too high, there will be excess supply (surplus) because of lower consumption. After some time, the suppliers find that they cannot continue selling the goods at the given cost. They in turn lower the costs of the goods so that they can sell the surplus. The decrease in costs attracts more buyers and this decreases the amount supplied. The costs continue to fall until they reach a state of equilibrium. When the costs are set below the equilibrium, there is a higher demand because of the cheaper costs. Many consumers are willing to buy more when the costs are low and this creates a shortage of the goods produced. Because of the shortage, sellers increase the costs of goods and as the cost increases, the demand falls and the supply increases. As this is happening, the market moves to a state of equilibrium.

Governments sometimes set cost floors to deal with the falling costs. They do this to help the sellers so that they do not incur huge losses. Cost floors restrict the costs from falling below a certain level. If the cost floor is above the market cost, it causes a surplus. The government can also impose cost ceilings, where it prohibits a cost from going above a certain level. They do this to help the buyers from being exploited by the sellers. If the cost ceiling is below the equilibrium cost, there will be a shortage. Cost floors and ceilings lead to non-cost rationing, changes in quality and black markets

The cost elasticity of demand shows the percentage change in the amount demanded because of changes in commodity costs. Elasticity of demand measures the sensitivity of the amount demanded of a good to changes in its cost, cost of other related goods and income. Cost elasticity of demand measures the change in amount demanded when its cost changes. If the amount of a good responds substantially to the change in cost, demand is said to be elastic and the elasticity is greater than one. Demand is inelastic if the amount demanded reacts slightly to cost changes. In this case, the elasticity is less than one. Inelastic demand is not sensitive to costs. Goods and services that have no close substitutes, necessities and inexpensive goods have an inelastic demand.

If the elasticity is one, demand is said to be unit elastic. It means that the amount moves the same amount proportionately as the cost. Cost elasticity of demand is determined by accessibility of close substitutes, time, markets and the types of goods. Close substitutes have a more elastic demand because consumers can switch from one good to another. A small increase in the cost of one good causes a large change in the amount demanded of that good. Goods have a more elastic demand over longer time horizons. Markets that are narrowly defined have more elastic demand than markets that are broadly defined because narrowly defined markets have more substitutes than broadly defined markets. Necessities, such as healthcare, are inelastic whereas luxuries are elastic. Cross-cost elasticity of demand shows the responsiveness of demand for one product to changes in the cost of another product. Cost elasticity of demand helps business people to decide whether to change products so that they can increase the sales revenues.

The cost elasticity of supply determines  the extent amount supplied responds to changes in cost of that commodity. When supply is elastic, it means that the amount supplied is controlled variably by the changes in cost. When the supply is inelastic, it means that the amount supplied responds slightly to changes in cost. Producers determine the cost elasticity of supply. Another important determinant of cost elasticity of supply is time. Supply is usually inelastic in the short run because producers cannot easily change their produce and therefore the amount supplied is not very responsive to cost. It is inelastic over long periods because producers have more time to determine their produce and the amount supplied responds largely to cost changes. When the supply is perfectly inelastic, the cost does not determine the amount supplied and it shows zero elasticity in a supply curve. When the supply is perfectly elastic, small changes in the cost leads to huge changes in the amount supplied.

Costs in a competitive market are determined by the forces of demand and supply. Consumers are willing to spend more when the costs are low and this creates a high demand. High demand leads to a shortage of commodities and the costs increase. Producers are willing to produce more when the costs are high and this creates a high supply. When there is a high supply of goods, the costs tend to come down as sellers look for ways of selling their products. The changes in the cost of commodities lead to a state of equilibrium where the amount produced and sold is the amount demanded. To protect the consumers from high costs, governments impose cost ceilings whereby consumers cannot sell above the set costs. To protect sellers from incurring huge losses in case of abundant supply, governments impose cost floors whereby sellers cannot sell below the set cost.

Research Proposal Process

Introduction

According to the different researches that have been done by several researchers in relation to the documentary food Inc., not even one researcher was able to come up with a research discussing this topic (Weber, 2009). Most of the researchers were either talking about what the government should do so that it could improve on the safety of the food for both the animals and the people. According to the movie food Inc., several safety regulations have been assumed so that the food processing industries can make a quick buck in providing cheap food to their customers (Kenner, Pearce, Schlosser, Robledo, Pohlad, Skoll, Schorr & Magnolia Home Entertainment, 2009). Therefore, this has prompted me to come up with the topic why causes of cheap foods can be expensive to the consumer and the society in the end in order to educate the readers and the customer how this cheap food can be very expensive to them and because I wanted to know, why cheap food is expensive (Mohr, 2011).

Discussion

There are several set backs that I have undergone to come up with the topic. At first, I was not sure what to talk about because the research is very broad and wide and there are so many issues, which need to be looked at (Booth, Colomb & Williams, 2008). What made me conclude to the topic is:

• The need to educate people about the various diseases they can get in relation to bad food production process.
• How can this be expensive to the consumers?
• The different solutions, which can be used by customers to prevent this from happening to them and their families
• How the consumers can voice claims to protect themselves from any more harm.
• The corruption that might be involved in the processing of these foods
• Finally, to learn on the main causes of why cheap food is expensive

Due to the poor production of these cheap foods, very many consumers have been complaining of very many diseases, which have been affecting them (Segner & Scholthof, 2010). What most of them do not know is that these cheap foods are processed very poorly eventually leading to very many diseases. These diseases range from malnutrition, food borne illness to even chronic diseases (Ogheneovo, 2010) (Thrasher & Crawley, 2009). These diseases depend on the degree by which contamination has taken place. The treatment of these diseases is very expensive and in several cases, they can lead to death if not well prevented. Therefore, I decided to research on this topic because cheap foods can be very expensive (Dursun, 2007).

Due to the expense, which follows the consumption of these cheap foods, consumers have ended spending a lot of money on their treatment than they could have if they ate good healthy meals, which are a bit costly (McClements & Rao, 2011). The foods, which are a bit costly usually, do not undergo these processes therefore, they are not contaminated, and mostly they are well preserved more than the cheap foods (Pimentel, 2002). Despite them being expensive, the chances of getting diseases is very low as compared to the cheap foods, therefore we can say that cheap foods are very expensive to the consumer due to the several diseases they pose.

Another good reason that prompted me to pick this topic was that I wanted find the different solutions to the problem. Since the topic has been barely touched, some of the best solutions rage from the topics of how diseases from contaminated foods can be avoided (O’Neil & Nicklas, 2007). According to the movie food Inc several solutions have been provided to this problem but the question is have they be acted upon by the various related parties so that they can prevent this diseases from happening. Finally, do the consumers know how to protect themselves from the different diseases that might present themselves due to contaminate food (Barton, 2009)? Therefore, I have chosen this topic so that I could develop new to those that might have already been established and the actions that should be taken incase of failure to follow this solutions (O’Neil & Nicklas, 2007).

There are several ways, which consumer can protect themselves against some of these issues and yet most of them are unaware of this protection. There are several consumer protection organizations that are supposed to deal with protecting the consumer against these issues but it is not a surprise to learn that most of these consumers do not know that they exist. Additionally, these consumer protection organizations do not use their power to protect these different consumers. On the other hand, these consumer protection organizations tend to liars with the processing companies hence having conflicts of interest. In the end, the consumer ends up not to being protected (Masten, 2007). Therefore, I have come up with this topic so that I can educate myself and the consumer about the different types of protection they can use in order to reduce the expense of eating cheap foods.

Processing of these foods is a multi-billion dollar sector and very many unscrupulous businesspersons might be tempted to take advantage of this production. Due to this, it might lead to corruption so that they can try to take advantage of every possible means of earning that extra billion dollar (Congress of the European Society for Agricultural and Food Ethics, Kaiser & Lien, 2006). Many people might not be aware that this exists in the food process industry because there are rules and regulations, which govern the production of food, and corruption does not present itself in the open (Pollan, Brick & Books on Tape, Inc., 2007). Additionally, not every body knows how a certain company processes its food and at which point corruption is likely to occur. Therefore, I have decided on this topic because I would like to educate people against corruption and how it can lead them into using a lot of money in the end (Masten, 2007).

Finally, I have come with this topic so that I can be able to learn and educate many others about the causes that might be making these cheap foods to be very expensive ((Magkos, Arvaniti, & Zampelas, 2006). A good number of Americans are usually very poor, in order to satisfy one of their basic needs, that is, food they can only afford to eat this cheap foods (Hardin, Crandall & Stankus, 2011). In conjunction, most of them do not have the power to act against some of these issues or most of them of them are not well conversant with these issues, therefore they end up spending more than what they think they spend. It is due to this that has made me come with this topic so that I can educate this poor American citizen who are illiterate and do not know how to put their powers into practice so that they can protect themselves and eventually their money from this cheap foods in the long run (Cal, Skan, & Callon, 2010).

In relation to the topic there are several reason have prompted me to choose this topic due to the current and available sources that there are to be used in expounding the topic. In doing I have used several truncations so that I could eliminate the different kinds of information which was unreliable. Before I could determine the sources to use there were very many set backs that I had to encounter with. This set backs were:

• Determining the right source that can answer my topic
• Determining those sources that are credible sources and those that are not credible

In determining the right source to use in the study I had to use several ways so that I could eliminate those sources that are very irrelevant to the topic. In general any information can be a sources may it be from people, from the web or from the different kind of books. What matters most is whether the source has information in relation to the topic that I am discussing about (Booth, Colomb & Williams, 2008). I had many sources to choose from but not all this sources were ready to be used as a source because of their credibility.

In conjunction to this, to determine the credibility of a source is very important but it can pose a great problem if the source I want to use has all the information I want to use but it is not credible. On the hand, the source can be very credible but it does not have that much information that is needed to support my argument therefore choosing the right sources, which is credible to me, I had to check on several factors. These factors are:

• The time in which the source was last updated
• The author of the source that I am going to use
• Whether a reputable publisher had posted the source
• Has the source been frequently cited by others

The time in which a source has been last updated is very important in determining whether it can become a reliable source or not (Booth, Colomb & Williams, 2008). Those sources that were lastly updated like two to three years ago are not very credible because they show that the author or the publisher has abandoned them especially for those articles that are in the web. For books, it can be very different because according to the topic the credibility of the books can be those, which were last updated ten years ago. Therefore, there were many sources, which I could use to support my topic.

The author of the matters very much when it comes to credibility because authors social network like face book and twitter are not credible especially like in my topic because they base their information on hearsay. Therefore, authors must be professionals have done a very in depth study of the subject and have several evidence to prove their work. Additionally, the publisher of the source should be a very reputable publisher like from the university press (Bronner, Cassis & Université Pierre Mendès France, 2005). Lastly, has the source been frequently cited by others, is another way of determining its credibility. If other has frequently cited it, it means that it is very credible. Therefore, when I was deciding which source to use and which one not use in accordance with my topic, I had to follow the above to decide whether the topic had a lot of credible source (Hardin, Crandall & Stankus, 2011).

The scope of my database/resources varied from various categories in relation to where they are from to the form in which they are. There are several categories, which can be used to determine what kind of source I have used. The different categories, which have been used to determine these sources, are:

• Primary sources
• Secondary sources
• Tertiary sources

Primary sources are those sources, which are derived from the raw material (Booth, Colomb & Williams, 2008). In this topic food Inc is one of the primary sources because, based on the evidence it has provided it is very clear that American end up using a lot of money in the end due to the production of these cheap diseases. Additionally, food Inc has been the bases of my research because of the different unanswered gaps that are there (Coppock & Jacobsen, 2009). One of the major gaps that food Inc has left out is the amount of money people eventually end up using due to eating this processed foods. Therefore, this has been a basis to my topic, which is why causes of cheap foods can be expensive to the consumer and the society in the end (Al-Attabi, D’Arcy & Deeth, 2009).

Secondary sources are those sources that are usually derived from primary data to solve the different problems that are written for the audience to view (Booth, Colomb & Williams, 2008). However, it is worth noting that secondary sources are only meant for professional audience. In the course of my research, several secondary sources have been helpful to me to come up with the topic because it has helped me to identify the topic, which has not been discussed or has not been fully exhausted by the researchers (Hess, 2001). Therefore, secondary resources can other researches that researchers have done. Therefore, secondary sources have been a great help to me because they have enabled me to develop a good research topic, which I want to educate others and myself about the various problem that might be associated.

Tertiary sources are those sources which written as a report to the general readers so that they can easily understand the problems (Mann, Ashton, Orsquo, Connell, Sinclair & Kelly, 2006). They range from articles, textbooks, journals and other mass-publications, which are meant for the general readers. When I was using these resources, I had to be careful because, not all the sources in the level are credible (Bellisle, 2004). Many of the researchers who writes this sources over simplify facts leading to the sources becoming outdated quickly therefore, when I was deciding about what sources to use here I was very careful not to use outdated/incredible source. However, there were many sources, which were credible to use therefore, it has prompted to my formulating of the topic (Kristiansen, 2006).

After I had done all this, I had to use transaction to filter the important information to my topic. I had to start reading the different sources and get the required information to support my topic. I did this by the use of taking notes and recording the kind of information that I might have needed in the different resources that were available. Additionally, there was also the breaking down of my research into sub headings to reduce the workload due to the bulky information available and to make my search easier. In addition, these sub headings they have me in searching for relevant information in the web and the library.

However, my topic is broad since no other researcher has done it before but I have used several tactics to make to be narrow by the use of selective method to filter the most important and what is not important and not important (Coppock & Jacobsen, 2009). Due to this several assumptions has been taken into account like the project has assumed that their might be companies not shown in the documentary food Inc which follow the correct procedures and they still sell this cheap foods (Frieders, 2001).

Additionally, at some the topic had almost digressed to a different topic. The topic that I digressed to was the diseases that are caused by contamination of these cheap foods (Kratz, 2009). This is because what make the cheap foods become expensive are the many diseases that are usually involved after its consumption (Capanoglu, Beekwilder, Boyacioglu, & Hall, 2010). I had started researching deeply about the various diseases, in relation to how they caused and how they can be prevented as opposed to my research where I had to show why these diseases are becoming costly and eventually making cheap foods to become expensive in the end to both the consumer and the society (Rees, 2010).

In conjunction to this, I had to formulate many different queries to come up with the solution to the topic. The first question was on how cheap foods are produced in relation to the documentary food Inc? This was to show the amount of contamination, which was in this food leading to the next query of, what diseases are they likely to attract (Cal; Skan & Callon, 2010). This was to show the various diseases that are likely to be experienced in the consumption of these foods. Finally, the query, how much money does one use in treating these diseases (Stern, 2010). The last query was to connecting the all the other questions with my topic proving that the research topic that I had used had a lot of information and that I had not digressed from the main topic (Hess, 2010).

Conclusion

According to the research topic in relation to the different difficulties/pressures I had to go through I came up with several conclusions. One is that everybody has to be careful in choosing the best research question because there are chances of lacking information or digressing from the topic. Secondly, it is better to check for the information first before concluding on the topic to research about. Finally, it is better to study and know how to choose the sources in relation to their credibility. With this information coming with a good research topic will not be a problem.

 

References

Al-Attabi, Z., D’Arcy, B. R., & Deeth, H. C. (January 01, 2009). Volatile Sulphur Compounds in UHT Milk. Critical Reviews in Food Science and Nutrition, 49, 1, 28-47.

Barton, H. (January 01, 2009). Predicted intake of trace elements and minerals via household drinking water by 6-year-old children from Krakow (Poland). Part 4: Copper. Food Additives & Contaminants: Part A, 26, 7, 988-1001.

Bellisle, B. F. (January 01, 2004). Impact of the daily meal pattern on energy balance. Scandinavian Journal of Nutrition, 48, 3, 114-118.

Booth, W. C., Colomb, G. G., & Williams, J. M. (2008). The craft of research, 3rd ed. Chicago: University of Chicago Press

Bronner, C., Cassis, Y., & Université Pierre Mendès France (Grenoble). (2005). Industries minières et métallurgiques de la vallée de la Romanche (1763-1914). Grenoble: Université Pierre Mendès France Grenoble 2.

Cal & skan, K., & Callon, M. (February 01, 2010). Economization, part 2: a research programme for the study of markets. Economy and Society, 39, 1, 1-32.

Capanoglu, E., Beekwilder, J., Boyacioglu, D., De, V. R., & Hall, R. (January 01, 2010). The Effect of Industrial Food Processing on Potentially Health-Beneficial Tomato Antioxidants. Critical Reviews in Food Science and Nutrition, 50, 10, 919-930.

Cimolai, N. (February 01, 2010). Methicillin-resistant Staphylococcus aureus in Canada: a historical perspective and lessons learned. Canadian Journal of Microbiology, 56, 89-120.

Congress of the European Society for Agricultural and Food Ethics, Kaiser, M., & Lien, M. E. (2006). Ethics and the politics of food: Preprints of the 6th Congress of the European Society for Agricultural and Food Ethics, EurSAFE 2006, Oslo, Norway, June 22-24, 2006. Wageningen: Wageningen Academic Publishers.

Coppock, R., & Jacobsen, B. (January 01, 2009). Mycotoxins in animal and human patients. Toxicology & Industrial Health, 25, 9-10.

Dursun, D. (2007). Gel-like behavior of biosolids in conditioning and dewatering processes.

Frieders, D. M. (2001). Biotechnology: From understanding to consensus.

Galt, R. (January 01, 2010). Scaling Up Political Ecology: The Case of Illegal Pesticides on Fresh Vegetables Imported into the United States, 1996-2006. Annals of the Association of American Geographers, 100, 2, 327-355.

Hardin, A., Crandall, P., & Stankus, T. (January 01, 2011). The Zoonotic Tuberculosis Syndemic: A Literature Review and Analysis of the Scientific Journals Covering a Multidisciplinary Field That Includes Clinical Medicine, Animal Science, Wildlife Management, Bacterial Evolution, and Food Safety. Science & Technology Libraries, 30, 1, 20-57.

Hess, D. (January 01, 2010). Environmental Reform Organizations and Undone Science in the United States: Exploring the Environmental, Health, and Safety Implications of Nanotechnology. Science As Culture, 19, 2, 181-214.

Jestoi, M. (January 01, 2008). Emerging Fusarium-Mycotoxins Fusaproliferin, Beauvericin, Enniatins, And Moniliformin – A Review. Critical Reviews in Food Science and Nutrition, 48, 1, 21-49.

Kenner, R., Pearce, R., Schlosser, E., Robledo, M., Pohlad, W., Skoll, J., Schorr, R., … Magnolia Home Entertainment (Firm). (2009). Food, Inc. Los Angeles, CA: Magnolia Home Entertainment.

Kratz, R. F. (2009). Molecular & cell biology for dummies. Hoboken, NJ: Wiley.

Kristiansen, S. (December 01, 2006). Transaction Costs and Linkage Creation: Experiences from Indonesia. The European Journal of Development Research, 18, 4, 662-686.

Magkos, F., Arvaniti, F., & Zampelas, A. (January 01, 2006). Organic Food: Buying More Safety or Just Peace of Mind? A Critical Review of the Literature. Critical Reviews in Food Science and Nutrition, 46, 1, 23-56.

Mann, N., Ashton, Y., Orsquo; Connell, S., Sinclair, A., & Kelly, F. (June 01, 2006). original research: Food group categories used in dietary analysis can misrepresent the amount and type of fat present in foods. Nutrition and Dietetics, 63, 2, 69-78.

Masten, C. R. M. (2007). The impact of exchange rate volatility on U.S. foreign direct investment in Latin America.

McClements, D. J., & Rao, J. (January 01, 2011). Food-Grade Nanoemulsions: Formulation, Fabrication, Properties, Performance, Biological Fate, and Potential Toxicity. Critical Reviews in Food Science and Nutrition, 51, 4, 285-330.

Mohr, B. (January 01, 2009). Feeling Blue in the South Valley. The Bulletin of Science, Technology & Society, 29, 5, 408-420.

Ogheneovo, A. S. (January 01, 2010). Biochemical changes in urine and plasma of rats in food chain-mediated cadmium toxicity. Toxicology & Industrial Health, 26, 8, 459-467.

O’Neil, C., & Nicklas, T. (January 01, 2007). Stateof the Art Reviews: Relationship Between Diet/ Physical Activity and Health. American Journal of Lifestyle Medicine, 1, 6, 457-481.

Pimentel, D. (2002). Encyclopedia of pest management. New York: Marcel Dekker.

Pollan, M., Brick, S., & Books on Tape, Inc. (2007). In defense of food: The myth of nutrition and the pleasures of eating. New York: Books on Tape.

Rees, G. (2010). Safe management of shellfish and harvest waters. London: International Water Association.

Sarfaty, M., & Abouzaid, S. (January 01, 2009). The physician’s response to climate change. Family Medicine, 41, 5, 358-63.

Segner, S., & Scholthof, K.-B. G. (March 01, 2007). Environmental Microbiology: Bacteria & Fungi on the Foods We Eat. American Biology Teacher, 69, 3, 149-157.

Stern, B. R. (January 01, 2010). Essentiality and Toxicity in Copper Health Risk Assessment: Overview, Update and Regulatory Considerations. Journal of Toxicology and Environmental Health, Part A, 73, 2-3.

Strawn, L., Schneider, K., & Danyluk, M. (January 01, 2011). Microbial Safety of Tropical Fruits. Critical Reviews in Food Science and Nutrition, 51, 2, 132-145.

Thrasher, J., & Crawley, S. (January 01, 2009). The biocontaminants and complexity of damp indoor spaces: more than what meets the eyes. Toxicology & Industrial Health, 25, 9-10.

Weber, K. (2009). Food, Inc: How industrial food is making us sicker, fatter and poorer — and what you can do about it. New York: PublicAffairs.

 

Franchising and Buyouts

1. What makes franchising different from other forms of business?

Franchising is different from other forms of business in that it is way that is used by business firms to expand their market niche through retail outlets that are independently owned by third party operators. The independent third party operator conducts business through his retail branch in accordance with the set marketing protocol, trademarked goods and services using the goodwill name of the business firm. This is done after the payment of a fee and royalties to the initial investors of the franchise.

There are specific terminologies used. The franchiser is the original owner of the franchise that sells the rights for the distribution of its trademarks, products, or modes of business transaction to the independent third party retailer. The independent third party retailer who buys rights and pays royalties to the franchiser is called the franchisee. This he does in accordance with the set rules regulations and standards

2. What is the difference between product and trade name franchising and business format franchising?

The franchising business format is different from product and trade name. In the business format model, the franchisee obtains the entire rights to structure their business in same design as the original business and the use of the company logos and trademarks in the conducting of their business. They also have the benefit of obtaining advice and assistance from the franchiser on the efficient business methods of starting up the business, running it and keeping it profitable in the present and the future. All this is done after the franchisee has paid up all the royalties and rights to the franchisee. This practice is very common with fast food shops and supermarkets.

Product and trade name franchising on the other hand does not involve the franchisee paying up the franchiser the necessary royalty fees. The business model is also much simpler as it involves the independent third party retailer trading in the products and services of the franchiser in the retail shop. This is done with the adoption of the franchisers trade name and logo. This practice is very common with soft drinks, motor oils and skincare products.

Which one accounts for the majority of franchising activity?

Of the various different kinds of franchising arrangements commonly practiced, the business format is the most commonly practiced. This is whereby the franchisee pays the franchiser an initial fee and an ongoing royalty for the exclusive rights of using the company’s logos, trademarks and business models.

3. Should franchise information provided by a franchisor be discounted? Why or why not?

The franchise information provided by a franchisor should never be discounted. This is for the simple reason that it is proven the most logical source with the most profound information about the business entity

4. Do you believe that the Franchise Disclosure Document is useful for franchise evaluation?

The Franchise Disclosure Document is useful for franchise evaluation is indeed useful for the evaluation of the viability of the franchise. The franchise disclosure document contains crucial information concerning the franchise. This includes the directors of the business, the decisions and their actions that they have made in the past. The document also shows how long the business has been in existence and the history of its profitability.

5. What are possible reasons for buying an existing company versus starting a new business from scratch?

Buying an existing company has several advantages over starting from scratch. These include; the investor reduces uncertainties as these are proven by the history of the company. The investor can take advantage of the ongoing transactions to found better or new relationships. The investor is able to acquire the existing firm at a bargain price. Another advantage is that the process does not include the time wasted in starting up a business firm as it is already in operation.

 

 

Integrated Healthcare Systems Review

Integrated healthcare systems are systems set as strategies of improving healthcare systems in the United States. The systems suggest use of combined effort of medical practitioners in various fields to manage healthcare. The strategy is aimed at making the healthcare sustainable to people by reducing the costs involved, at the same time remaining effective. However, their definitions, implementation and how they work is an emerging issue, which this review addresses briefly.

One good definition of these systems is considering them a joint effort of hospitals and freelance health experts such as physicians, in providing effective healthcare to patients. The main idea is freelancing healthcare experts ranging from primary providers to specialists offering their services as incentives to other hospitals, in a bid to reduce the growing healthcare costs. The main structure of these integrated systems is making health personnel in private sectors and public ones work together to provide quality healthcare (American Hospital Association research 3).

These systems seek to provide primary healthcare to patients, which leads to comprehensive integrated services, which are wide-ranging. Their success in providing such a comprehensive service will mainly come from the incentives that are presented by the joint coordination between hospitals and private providers, which save costs that later, are divided among the providers. The system involves joint responsibility between a hospital, physicians, specialists, Medicare homes and other medical experts in providing healthcare, which stops competition for patients, and in turn, cost reduction measures are used. Quality of service is rewarded to encourage the providers in giving good care to patients, which uses primary services to manage care to patients and use preventive measures that reduce chronic ailment costs. Providers are left with responsibility of managing the patients, and conducting follow-ups of adherence to treatment. The main idea is physicians taking care of all the medical care given to patients, from basic, educative, and chronic ones, through integrating other professionals.

These systems have advantages and disadvantages to patients and the providers too.

One of the advantages is efficiency and cost reduction. When this two are achieved in any field, they are a great advantage. These systems, due to integration of providers of medical health, will help improve the quality, offer a wide range of services that fit patients, and accessibility of advanced healthcare will be available to patients without limitations of where to get them. When the providers are held accountable for quality, and benchmarked, they are bound to improve the services provided. In addition, they are paid for quality services, which motivate quality performance.

The integrated healthcare programs, allow payment structures that integrate with other payment schemes. According to McClellan, if the payment reforms suggested in these systems are embraced, cost reduction can be achieved in the long-term. In addition, he suggests that implementation can be supported by other performance measures that will improve consistency and clinical relevance (987).

Despite these advantages, there are disadvantages associated with it. One is the implementation of the system. The implementation may pose a major challenge to everybody, since not all people are well aware of how it will work. Many people do not know how viable this system will be in terms of the cost reductions suggested. The providers will incur greater costs in coordinating the system since the responsibility is mainly inclined to them. Others feel that primary care is not comprehensive enough for chronic medical care. The providers will be the ones to incur losses if they are not able to maintain any savings on costs. Using these models, of primary care, fewer chronic cases will reach the specialist. This will be a negative implication to the patients.

According to Deloitte Centre for Health Solutions, the current health systems in the United States are not sustainable, and a way of managing the chronic medical care is necessary to help sustain good healthcare (15). The system has a good objective behind it, which aims at proving quality healthcare to the patients through taking care of chronic and other medical needs in the hands of the providers. Cost reduction is always a welcome idea if quality is maintained. Considering this system, the balance of cost reduction and quality is the main emphasis. The integrated healthcare is recommendable since it seeks to favor the patients and the providers of the services.

In the implementation of these systems, there are going to be challenges associated with it. One is leaving full accountability to providers. This will need the involvement of the providers and the payers. According to McClellan, he says that achieving sustainable healthcare solutions using this system will need not only medical skills from the physicians and other professionals, but also leadership and management skills (989).

Integrated healthcare systems are a possible solution to the healthcare in the United States, especially after considering that the current system is not sustainable and another one will be needed soon. This system will be effective if all parties involved, including patients take up the challenge through learning more about it, to reduce the barriers to its implementation. According to an American Hospital Association research, those interested in the integrated system should do a thorough analysis of their potential ability in taking up this opportunity (11). They should know what is necessary or needed in making an Accountable Care Organization, and how to integrate it with other players such as paying policies to ensure smooth flow.

 

Works Cited

American Hospital Association. “Accountable Care Organizations.” 2010. PDF files.

Bruce, Landon, Gill James, Antonelli Richard and Rich. “Prospects for Rebuilding Primary Care Using the Patient-Centered Medical Home.” Health Affaires 29.5 (2010):827-834. PDF file.

Deloitte Center for Health Solutions. “The Medical Home.” 2008. PDF files.

McClellan, Aaron, Julie McKethan, Roski Lewis and Fisher. “A National Strategy to Put Accountable Care into Practice” Health Affairs 29.5 (2010): 982-990. PDF file.

 

 

 

 

 

Corporate Social Responsibility

Introduction

The main role of business in society is to develop, produce and distribute commodities for the market. However, for a business to be successful, it must maintain good relations with its stakeholders, which is the society. One of the ways through which this is achieved is by engaging in corporate social responsibility. CSR accrues long-term benefits to the company because it helps in maintaining public goodwill, attracting talented, boosting the public image of the company, attracting talented and qualified personnel, which ultimately leads to an increase in profitability. CSR does not have to be expensive or large-scale for it to be successful, the most important factor is that it should be relevant to the societal or environment’s immediate pressing needs. For instance, a company may engage in CSR by simply adopting a responsible waste-management policy. Three of the themes that are important to an organization in the practice of CSR are strong leadership, sustainability and stakeholder engagement (Mullerat, 2010).

Importance of Strong Leadership

A company that has strong leadership engages more actively in corporate social responsibility as this type of leadership recognizes the importance of peaceful interactions with all branches of stakeholders. A company that has good leadership is able to balance the social and economic aspects of business aptly. Strong leaders pave the way for other companies, as they are innovative in their CSR activities. Their CSR plans are visionary and innovative; they realize that in order to achieve the organization’s long-term objectives their focus has to change from solely making profits to becoming a good respectable corporate citizen. For such leaders, engaging in CSR is more than just an effort to boost the company’s image; they are passionate and committed to making a positive impact in the society and the environment. They are also open to learning from the stakeholders and from the environment, and are ready to develop and implement new methods of achieving CSR, while also designing business systems that promote CSR and sustainability from the beginning to the end. Most companies do not engage in CSR because they view it as an expense that reduces their profit margins, good leaders however realize that CSR increases the company’s profitability in the end. Good leaders also take CSR seriously because they have a sense of responsibility and duty towards their society. On the other hand, a company may engage in many CSR activities, but if its leadership is perceived as unethical or corrupt by the public, then the company is automatically discredited as a good corporate citizen; the type of leadership of the company therefore has a major impact on the effectiveness of the CSR (Halle, 2008).

Organizational Sustainability

Sustainability is also an important theme in an organization that has the potential to act as a future employer. Sustainability involves the implementation of business practices that prompt ethicality and responsibility especially concerning the social, legal and environmental surroundings of the business. In addition to this, it also involves the pursuing of economic activities that are profitable and beneficial to the organization; yet do not have a negative influence the society, stakeholders or environment either currently or in future. Sustainability enables a company to demonstrate a higher level of CSR because it involves promoting a transparent environment between the organization and its stakeholders. The company’s efforts are directed towards making their profits in a manner that satisfies the needs of the environment and the stakeholders. For instance, the company may address the degradation of the environment by adopting alternative safe methods of waste disposal. Sustainability also involves promoting the utilization of the employees’ full potential. The organization should strive to create an environment where the employees will be able to grow, develop and achieve personal and career satisfaction. When the employees are contented and motivated, they are able to design and implement sustainable solutions to the company’s, stakeholders and environmental needs.

Sustainability also involves being flexible enough to adapt to new situations and make changes where necessary. This allows the company to incorporate technologies and methods that are efficient and effective. The company should opt for technologies and techniques that save the financially and environmentally economical. A company that is serious about enhancing sustainability should have a Sustainability Manager who is charged with developing and implementing sustainable alternatives for the company. Sustainability is major part of CSR because it involves the use of business techniques and technologies that are socially and environmentally viable. The best way for the company to achieve sustainability consistently is if it integrates sustainability into its products and services; the company must therefore be willing to take risks and innovate in order to develop sustainable products (Buchholtz et al., 2008).

Stakeholder Engagement

The third theme that is very crucial to an organization is stakeholder engagement. This involves the company interacting and talking to its various stakeholders, in order to develop its CSR initiatives, internally and externally. Stakeholder engagement is important because it gives the stakeholders a say into the running and execution of activities geared towards CSR, given that CSR is very important to the company’s performance and image. Stakeholder engagement is especially effective when a company is faced with contentious issues that require the input of the different stakeholders in the organization; the firm may also want to know the stakeholder’s view on a certain contentious issue (Blowfield & Murray, 2008). When a company initiates a stakeholder engagement, it is usually ready to implement the solutions that may arise from the dialogue. It helps the company cultivate business practices that are in line with the ethical and responsible social and environmental values and to enhance its competitiveness. Stakeholder engagement enables the company attain a higher level of corporate social responsibility because it enables the company to assess its CSR performance from the shareholder’s perspective, and implement the solutions that are discussed. Stakeholder engagement may also be used as a damage-control measure in order to come up with ideas that will rectify the company’s public image, especially where an event may have occurred that caused public outrage and criticism; a stakeholder engagement will assist in coming up with strong solution to its problems.

References

Aaronson, S. A. (January 01, 2007). A Match Made in the Corporate and Public Interest: Marrying Voluntary CSR Initiatives and the WTO. Journal of World Trade, 41, 3, 629.

Andriof, S., Waddock, B., & Rahman, S. S. (2003). Unfolding stakeholder thinking: Theory, responsibility and engagement. Sheffield, UK: Greenleaf.

Blowfield, M., & Murray, A. (2008). Stakeholder partnerships. Corporate responsibility: A critical introduction. Oxford, UK: Oxford University Press.

Boutilier, R. (2009). From social capital to inter-sectoral complementarity. Stakeholder politics: Social capital, sustainable development, and the corporation. Stanford, UK: Greenleaf.

Buchholtz, A., Brown, J., & Shabana, K. (2008). Corporate governance and corporate social responsibility.New York, NY: Crisp Publications.

Crane, A., McWilliams, D. Matted, J. Moon & D. Siegel. (2006). The Oxford handbook of corporate social responsibility. Oxford, UK: Oxford University Press.

Doh, J. P. Stumpf, S. A. (2005). Handbook on responsible leadership and governance in global business. Cheltenham, UK: Edward Elgar.

Finch, L. (1997). Success as a CSR. New York, NY: Crisp Publications.

Halle, M. (2008). New approaches to trade governance. State of the world 2008: Innovations for a sustainable economy. Hyattsville, Washington DC: Worldwatch.

Hopkins, M. (2006). Corporate social responsibility and international development: are corporations the solution? Sterling, VA: Earthscan.

May, G., Cheney, R., & Roper, J. (2004). The debate over corporate social responsibility. Oxford, UK: Oxford University Press

Mullerat, R. (2010). International corporate social responsibility: the role of corporations in the economic order of the 21st century. Austin, TX: Wolters Kluwer Law & Business.

Managerial Accounting for Internal Control Accounting Systems

Memo

 

From:

To:

Date:

Re:       Importance of Internal Accounting

 

I am writing this in order to explain to you the objectives and the importance of internal control systems in relation to this company.

 

The main objectives of internal accounting systems are:

• To ensure that the information offered is reliable and can be used by the auditors to prepare the final audit report.
• To prevent the occurrence of errors and frauds in the information recorded in the accounting records and the financial statements.
• To prevent the theft or destruction of the company’s assets and records caused by malicious or unintentional activities.
• To ensure that the company’s policies kept in place are followed.
• To ensure that the government regulations put in place are followed and met (Needles, Powers & Crosson, 2011).

The internal accounting systems also include the internal control accounting systems. All these ensure that the accounting systems are functioning as they were intended. They also make the other managers work easier as they guide the employees in the accounting department on what or what not to do.

 

The characteristics of these systems are as follows:

• They are put in place by the management in order to ensure the smooth flow of running in the accounting department and the business in general.
• Lack of adherence to these controls put in place leads to a penalty stated by the management.
• They can be changed if the management finds it necessary (Jackson, Sawyers & Jenkins, 2008).

 

A manager for internal controls ensures that all these systems are fully implemented without compromise. He is also able to make any follow ups of any unexplained activity as compared to a general manager who might not be able to note these activities.

 

If the company is to ensure that all the business ethics are followed, certain things need to be adjusted in the company’s management. There should be managers delegated to ensuring that these specific policies and activities are followed to the letter. The international Standards of accounting require businesses to have internal control businesses put in place for the reasons mentioned earlier. Dysfunctional systems raise many questions from the auditors and may be included in the auditor’s report. This is not good for any particular business or organization (Macintosh & Quattrone, 2010).

 

The code of ethics expects accountants to work professionally and with due care. The managerial accountant’s role is to ensure that the systems put in place are well followed and implemented in order to ensure the smooth flow of the business especially in the accounts department. They will be answerable to the auditor’s in a much easier way as compared to the other higher managers. I hope that you will consider this.

 

With regards,

 

Manager,

 

 

 

References

Jackson, S.R., Sawyers, R.B. & Jenkins, J.G. (2008). Managerial Accounting: A Focus on Ethical Decision Making. Ohio, OH: Cengage Learning.

Macintosh, N.B. & Quattrone, P. (2010). Management Accounting and Control Systems: An Organizational and Sociological Approach. Indianapolis, IN: Wiley Publishers.

Needles, B.E., Powers, M. & Crosson, S.V. (2011). Financial and Managerial Accounting. Ohio, OH: Cengage Learning.

 

 

“The Cask of Amontillado” and “The Tell-Tale Heart”

Introduction

The Cask of Amontillado and The Tell-Tale heart stories written by Edgar Poe are similar in a number of ways. As usual, Poe’s way of writing is very evident in these stories. There is the usual presence of a narrator, the characters being murdered at night, the victims being murdered by the people they knew and were close to, just to mention but a few. Poe continues to explore his imagination and creativity and tells us about the mystery of the character’s cause of death. The two stories have many similarities and differences that sum up Poe’s way of writing and bring out his usual creativity.

Similarities

From both stories, we learn that the narrators want to kill the people who are close to them. In “The Tell-Tale Heart”, the narrator wants to kill the old man of whom he describes as one who has “never given him insult” (Poe, The Tell-Tale Heart, 1843). He goes ahead and insists that the old man has never done him any wrong. In “The Cask of Amontillado”, the narrator wants to kill his friend. In both stories, the characters give very ambiguous reasons as to why they want to kill these two victims.

The narrator tells us that he wants to kill the old man because of his “vulture eyes”. He explains that these eyes tormented him and his ‘blood ran cold’ whenever the old man looked at him. In ‘The Cask of Amontillado”, Montressor explains that he will avenge “the thousand injuries” (Poe, The Cask of Amontillado, 1988) he had tolerated from Fortunato. This implies that he was bitter with Fortunato for ill-treating him and that is why he wanted to kill him.

In both cases, the narrators are sharing the story first-hand. We get to read and follow the story from their point of view. We judge the other characters by what they reveal to us and only get to know as much as they would want us to know. They also do not reveal their intentions to their victims. In fact, they continue to behave as usual and even show more politeness in some cases so as not to arouse any suspicion. The narrator in the Tell Tale Heart tells us that he was never kinder to the old man during that week (Poe, Tell-Tale Heart, 1843). Montressor is also seen to help Fortunato when walking as they head to the tombs.

Both murders are accomplished at night. The narrator in The Tell-Tale Heart tells us that they would walk to the old man’s room in the midnight hour in order to check whether he was awake. He did this for eight nights but on the eighth night, he finally awoke and was able to accomplish his task. Montressor tells us that by midnight, his task was almost over. The murderers bury their victims. In The Tell Tale Heart, the narrator buries the old man’s dismembered body under the floorboards. On the other hand, Montressor buries his friend in stones though alive. They show us how well they had planned the murders and how they covered their tracks so that they would not be caught. The narrator in The Tell Tale Heart hides the body and puts everything in order so that there is nothing suspicious about the place. Meanwhile, Montressor seals the entrance with stone and mortar so that nobody would trace Fortunato.

In both stories, the murderers were not in a hurry when committing the murders. In The Tell Tale Heart, the narrator explains that he takes one hour to get into the room at midnight. He also tells us that by the time they had finished the whole task, it was four in the morning. On the other hand, Montressor takes his time to lead Fortunato to the tombs and then seals the entrance with stone and mortar, taking breaks in between. In both stories, the victims get to see who their murderers are. The old man sees the narrator before the narrator finishes him off with the bed. In fact, they look at each for a long time before the narrator is greatly agitated by the man’s heartbeat. Fortunato is led to his place of death by Montressor and he witnesses him as he buries him alive. In fact, they talk some last words before he puts the final stone.

Differences

There are a number of differences noted in the two stories. The narrator in The Tell Tale Heart accomplishes his act indoors. The murder takes place in the old man’s room. Meanwhile, Fortunato is buried alive in the tombs by Montressor. The narrator in The Tell Tale Heart used a murder weapon that is the old man’s bed, to finish him off. On the contrary, the murderer just chains the victim then seals the entrance. The old man is full of fear and the narrator tells us that he even heard his heart beat. He lets out a scream, which attracted a neighbor who called the police. In the second story, the victim also lets out screams but he seems to take it as a joke by the way he talks to Montressor. At some point, he shouts “Ha! Ha! Ha! A very good joke in deed… an excellent jest…” (Poe, The Cask of Amontillado, 1988).

The narrators in both stories are of different nature. In the first story, the narrator is insane and suffering from a nervous disease. However, he insists to the reader that he is very sane and in fact has an extraordinary ability he/she calls the “over-acuteness of the sense”. The main reason that the narrator gives for killing the man is his vulture-like eyes something that one cannot kill another for. In the second story, the narrator seems to be perfectly sane and only chooses to kill Fortunato for vengeance. He tells us that the man ill-treated him. He also says that he was proud and arrogant. In the first story, we are not told of the narrator’s name. We are also not told about the old man’s name. On the other hand, we know the name of the narrator as Montressor and the victim as Fortunato.

The narrator in the first story is caught by the police. This is because he admits to having killed the old man after being tormented by the sound he thinks is the heartbeat of the dead man. In this case, the murder haunts him and he can no longer stand it. It drives him to the edge. In the second story, Montressor is not caught. In fact, there seems to be no one who suspects him of anything. This is because he orders his servants to stay indoors and make merry hence no witnesses. He also walks away from the tomb and does not seem to be about the act. However, there is a time he is caught up by guilt when he stops to seal the entrance and calls out in the tomb (Poe, The Cask of Amontillado, 1988). As mentioned, the two stories have many similarities and differences but to conclude, they all bring out Poe’s way of writing that have been seen in all his other stories.

Works Cited

Poe, Edgar Allan. The Tell-Tale Heart. n.p., 1843. Web. n.d.

Poe, Edgar Allan. The Cask of Amontillado. Balance Publishing Company, 1988. Web. 19 February 2011.

Reflective Journal of Usability Issues

1. Reading

• Article 1:

• Author: Lee Sangwon and Koubek J. Richard
• Title: The effects of usability and web design attributes on user preference for e-commerce web sites
• Date: 2010
• Journal: Computers in Industry 61
• Pages: 329-341
  • Article 2:
• Author: Iqbal Rahat, Shah Nazaraf, James Anne and Duursma Jacob
• Title: Arrest: From work practices to redesign for usability
• Date: 2011
• Journal: Expert Systems with Applications 38
• Pages: 1182-1192

1. Subject/Theme of the article

• Article 1

The relationship between usability and design attributes on user preference for e-commerce web sites

• Article 2

Incorporating user needs when re-designing a support management system in a small and medium sized enterprise

1. Argument/Finding

• Article 1

Companies that engage in e-commerce use the internet extensively to expand their businesses. The company’s website is an important feature of any company that is doing businesses over the internet. A website provides information concerning various products and services and thus communicates with the customer. It can also be used for commerce purposes, where customers and clients can buy different products and in addition to this, the website serves the purpose of entertainment. When designing a web site, the company should consider the type of business, the purpose of the website, the system it will use and the users of the website. Users are very important since they determine the success of the business[1]. User preference reflects the attitude that the user has towards the interface and functionality of the website and this influences the decision that he or she makes. When making their preferences, the users will look at the usability of the website, the quality of the information provided, the performance and the aesthetics. High usability does not always mean high preference. There is a strong relationship between usability and user performance.

• Article 2

When developing expert systems, it is important to consider the user requirements. This includes the social, political and cultural needs of the user. The designer has to know the various user requirements and he or she can use questionnaires, interviews’ observations and user tests. By doing this, the designer makes sure that all user requirements are captured and enhanced in the user design. In addition, usability and acceptability of the design are improved. Questionnaires have various limitations such as lack of good feedback and the fact that one cannot clarify issues. Researchers have in the past combined different methods to improve the design and usability of a system[2]. The goals of the user have to be a priority when designing a system. Different users have different goals and so do different departments. Customers have different goals from the other employees in the company. The finance department has different goals from the sales and project management departments.

1. Evidence

Usability evaluation methods have been developed to measure usability and to make a website more usable and preferable. In defining usability, ISO 9241 emphasizes measurable standards of performance by specific users, tasks and situations. Usability can be evaluated by observing how users interact with a system and recording their performance.

Researchers such as Van der Veer, Welle and Thorborg combined traditional human computer interaction approaches and ethnography to develop a conceptual model for groupware task analysis. In developing e-class, the researchers combined methods such as weblog analysis with session tracking, questionnaires, controlled experiments and observation.

1. Observations

Ease of use of web designs and other systems lead to customer satisfaction. It ensures that the customer uses the system again. Systems should be built in a flexible manner and this ensures that there is room for changes to be made. Employees are more productive when they have a system that is more user-friendly. They do not spend much of their time trying to figure out how the system works and their energy is directed to the work and to the clients.

1. Conclusion

Researchers and designers should be willing to combine different approaches when designing a system so that they can develop a system that fits all the user requirements. They should use different approaches to capture user requirements since all approaches have their own benefits and limitations. They should test the system they have designed for considerable length of time to ensure that they have fully captured all user requirements.

1. Other relevant or related readings

Users should find it easy to understand and navigate the system. If one is designing a website dealing with technological matters, he or she should take care not to use technical jargon since this limits the number of visitors who visit and use the site. The level of language used should be simple enough not to exclude anyone[3].

 

1. References

Colker, Nathan. “Four ways to optimize user experience design using unmoderated remote testing”. Userzoom. 21 December 2010. http://www.userzoom.com/four-ways-to-optimize-user-experience-design-using-unmoderated-remote-testing-

Rahat, Iqbal, Shah Nazaraf, James Anne and Duursma Jacob. “ARREST: From work practices to redesign for usability”. Expert Systems with Applications. 38, no. 2 (2011): 1182-1192.

Sangwon, Lee and Richard Koubek. “The effects of usability and web design attributes on user preference for e-commerce web sites”. Computers in Industry. 61, no. 4 (2010): 329-341.

[1]  Lee Sangwon and Richard Koubek, “The effects of usability and web design attributes on user preference for e-commerce web sites”, Computers in Industry, 61, no. 4 (2010): 329-341.

 

[2] Iqbal Rahat, Shah Nazaraf, James Anne and Duursma Jacob, “ARREST: From work practices to redesign for usability”, Expert Systems with Applications, 38, no. 2 (2011): 1182-1192.

 

[3] Nathan Colker, “Four ways to optimize user experience design using unmoderated remote testing”, Userzoom, 21 December 2010, http://www.userzoom.com/four-ways-to-optimize-user-experience-design-using-unmoderated-remote-testing-