Monetary Policy Process

Question: Examine about the Monetary Policy Process. Answer: Presentation The four resource classes in Table I are Australian offers, Australian Bonds, Cash rate and International stocks. The principal resource class is the Australian offers. This comprise the organizations recorded on ASX and the profits are the year on year return on these stocks. The following resource class is the Australian Bonds which are the bonds given by the Australian Government. The following resource class is the Australian money rate likewise called the official money rate (OCR). This is the Australian base rate. Banks pay this financing cost when they apply for a new line of credit with a development of 1 day from another bank.(RBA, 2016) The following resource class is the universal stocks which are scrips recorded on trades everywhere throughout the world other than Australia. Utilizing the information from the table which is the 25 year on year return on these benefit classes Arithmetic mean, Geometric Mean and Standard deviation has been determined. A spreadsheet has been utilized to figure the different measures. The table underneath sums up the outcomes. Resource class Australian Shares Australian Bonds Money Rate Universal Stocks Number juggling Mean 15.98571429 11.51429 9.257143 14.88571 Geometric Mean 14.38 10.14 8.32 13.14 Standard Deviation 21.4592035 6.855883 4.332224 22.08374 Number juggling mean of profits is just the normal of profits over a given timeframe. While it is a straightforward and helpful apparatus for ascertaining normal returns the issue emerges when there are negative returns in a given year. All things considered number juggling mean doesnt fundamentally give the best gauge of a hazard return on an advantage. Geometric mean then again is a superior gauge of a hazard return on an advantage. Math mean would will in general exaggerate the development and not give a reasonable gauge of hazard return, it gives a normal exhibition measure over numerous holding periods. Notable in measurements, AM is more touchy to anomalies than is GM and as such GM might be favored in such cases. From the point of view of hazard averseness, AM probably won't be liked. (Yang, Hung, Zhao, 2013)If we think about an advantage with returns of 10%,20% and 6% more than three years, the AM would be 12% while the GM would be 10.62%. Thus we see that AM over all advanta ge classes is more than the geometric mean. Standard deviation is the square foundation of the fluctuation which thus is the distinction between the mean and the genuine return. Subsequently standard deviation is a decent instrument to gauge the unpredictability of an asset.(New York University, 2013) Generally, a steady resource would have less standard deviation contrasted with an unsafe and an unstable resource. AM for Australian offers is generally 16% while the GM is 14.4% and the standard deviation is 21.45 from the Arithmetic Mean. This would demonstrate an exceptionally unpredictable resource. AM for Australian Bonds is 11.5 and the GM is 10.14 and the standard deviation is 6.85 from the mean. This would demonstrate a moderately steady resource. AM for money rate is 9.25 and the GM is 8.32 while the deviation is 4.33 demonstrating that over all benefits this is the most steady. AM for worldwide stocks is 15 while GM is about 13 though the SD is 22 demonstrating this is the most unstable resource. Development of A Portfolio Financial Vs Monetary Policy Monetary arrangement alludes to the administration strategies with respect to consumptions and tac levels through which it screens and controls a countries economy. Summarizing it very well may be portrayed as the structure for charge rates and government consumptions. Through the methods for these the legislature can change(increase or diminish) total interest and level of monetary movement. It can likewise realize changes in reserve funds and speculation designs. At the point when the financial development is moderate, government can utilize the monetary approach to diminish the duty rate along these lines expanding total interest and on the other hand use it to the contrary impact too to hinder the pace of solid monetary development and settle prices.(Caballero, 2013) Then again, Monetary policyis the procedure through which the financial authority of a nation, by and large a national bank controls the flexibly of cash in the economy by its power over loan fees so as to keep up value steadiness and accomplish high monetary development. By controlling the gracefully of cash to the economy the national banks can either instigate expanded request or delayed up an economy developing at a pace quicker than foreseen so as to stop inflationary patterns. The three factors that would decide how touchy an organizations profit are to the business cycle are: Nature of item: The offer of non essential merchandise, for example, show pieces, collectibles will decrease while that of vital things, for example, food supplies and so on would be steady. Working influence: An organization having a low proportion of fixed expenses to factors costs will be increasingly adaptable in changing in accordance with cost slices when contrasted with an organization with high fixed expenses. Obligation value proportion: A firm having more obligation in its capital structure is supposed to be utilized. Obligation despite the fact that diminishes the WACC(Weighted Average Cost of Capital) and builds productivity when the firm is in high development stage, yet it likewise expands the weight of fixed costs. Subsequently having the influence of obligation in a capital structure is a two edged blade as it makes the firm less touchy to recessionary patterns. Valution of Options The estimation of a call alternative operating at a profit Scholes model can be composed as a component of the five factors: S = Current stock cost; for this situation 39 K = Strike cost of the choice; for this situation 35 t = Life to lapse of the choice; for this situation allowed as a half year or year r = Riskless financing cost relating to the life of the choice which is given as 5.3% in the given situation ^2= Variance in the ln(value) of the basic resource; for this situation given as square of 0.3 Estimation of call = S N (d1) - K e-rt N(d2) where d1 = ln(S/K) + (r + ^2/2 ) t/*t^1/2 Note that e-rt is the current worth factor and mirrors the way that the activity cost on the call alternative doesn't need to be paid until lapse. N(d1) and N(d2) are probabilities, assessed by utilizing a combined normalized typical conveyance and the estimations of d1 and d2 got for an option.(Damodran, 2005) Utilizing the qualities on a spreadsheet d1 is gotten as 1.86 and d2 is acquired as 1.66. Utilizing the typical circulation table from the recommended course book then N(d1) and N(d2) is gotten as 0.9686 and 0.9515 separately. Utilizing the recipe at that point estimation of the call is acquired as $8.83. Additionally, estimation of put alternative is given by P=Xe^-rT[1-N(d2)]-S[1-n(d1))] (Damodran, 2005) Placing the qualities in the equation the put alternative valuation is shown up at $1.01. Imprint to Market Settlements The every day mark-to-showcase settlements for each agreement held by the long position has been determined and arranged as follows. The qualities in the subsequent segment got by deducting that days cost with the beginning cost and the complete continues determined by increasing the all out amount with the second section which for this situation is 100 ounces. Day benefit/misfortune per ounce All out continues 0 1197.9 1 1198.7 0.8 80 2 1194.7 - 3.2 - 320 3 1247.9 50 5000 4 1239.1 41.2 4120 5 1239.1 41.2 4120 6 1207.9 10 1000 7 1211.1 13.2 1320 8 1226.1 28.2 2820 9 1230.4 32.5 3250 10 1209.5 11.6 1160 Premise is the distinction between the spot cost and the future cost. For instance, if the spot cost for an ounce of gold is $195 and the future cost for conveyance following 10 days is $198. All things considered the premise is 3 dollars. Assume the following day the spot value diminishes to 193 dollars and the future cost for conveyance gets 195. All things considered the premise decreases to 3 dollars from 2 dollars. In any supporting system there is a hazard that the two speculations used to counterbalance each other wont move a similar way. This opens the speculator to a position wherein he/she can make abundance additions or misfortunes emerging from the changes. This hazard is known as the premise risk.(Ankirchner, Kratz, Kruse, 2013) For instance a speculator fences a two-year bond with acquisition of govt bills. The hazard that the two wont move a similar way is consistently there and structures the establishment for the premise chance. Prospects and choices are money related agreements and both are instances of subordinates as their worth is gotten from that of a basic resource. Future is a case of a money related agreement Futures are a lot of like advances however are a more developed item as in they are adaptable and give the choice of expelling the commitment before the expiry of the agreement. Future agreements are broadly utilized by the banks to fence cash risks.(Meera, 2002) Options are comparable monetary agreements however the central matter wherein they contrast from prospects is that going into a choice agreement gives the purchaser of the choice right yet not the commitment to purchase or sell a benefit. A call choice is for purchase, though a put alternative is for sell. Hazard Adjusted Return Mesaures Sharpe proportion was an apparatus created by William Sharpe and since its initiation has become the most broadly utilized measure for assessing hazard balanced return. It is given by (Return on the Asset-Risk free rate)/Standard deviation.(Pav, 2016) For the given model, Sharpe proportion of the portfolio is determined as (0.12-0.055)/0.33 which is gotten as 0.19 or at the end of the day for each purpose of return the financial specialist is conveying 0.19 units of hazard. Correspondingly, the Sharpe proportion for the market utilizing a similar technique is gotten as 0.1. Thus what Sharpe proportion finds is that the portfolio is givin

WritePlacer Review - Is It Really Effective?

WritePlacer Review - Is It Really Effective?The WritePlacer review shows how the product can help write-a-thons and other community events. There are several advantages to using the product. For example, you can start writing as soon as you open the package. You won't have to worry about spelling or the size of the letters.Another advantage is that it offers automatic correction of your writing. It will find all the mistakes on your manuscript and correct them for you. With its automatic correction feature, you won't have to spend hours correcting your work. It's going to do it for you.The company also offers a free online version that gives you a great job. You don't need to worry about writing good sentences or paragraphs because you can skip right to the end. You can write a great summary too. When you're done, you can save your work and also your comments.If you don't like WritePlacer, don't feel bad because it is rated as one of the top personal and business writing software on the market. You can download it right away. The software is simple to use and you can even use it to write an article or write an essay with ease.It is especially useful when you need to turn a commercial grade piece of writing into something that you can submit to publishers or write for your readers. People will appreciate your skills in their newsletters that you want to send to them.Writing is time consuming and repetitive. When you use WritePlacer, you can avoid writing in paragraphs, by writing only one letter and then repeating that letter throughout your document. The automatic correction features of WritePlacer help you avoid this.Itis a program that is easy to use. If you use it regularly, you can get use to it without having to follow the instructions. Using it is also cost effective because you only pay for what you use. That means you only pay for the time you're going to use instead of buying software for every draft.As for how the product actually works, it is a sales pitch. You need to pay for the software to get access to the features but it has been proven effective. There are no gimmicks in it. You just have to be disciplined and use it the way it is supposed to be used.

Porters Five Forces Model

Porters Five Forces Model INTRODUCTION Through his model, Porter classifies five main competitive forces that affect any market and all industries. It is these forces that determine how much competition will exist in a market and consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim to shape these forces to its advantage to strengthen the organizations position in the industry.For the purpose of this model, industry attractiveness is the overall profitability potential of the industry. An attractive industry will be one where the combined power of the competitive forces will increase profitability potential. While an unattractive industry will be one where the collective impact of the forces will drive down profitability potential.These forces, termed as the micro environment by Porter, influence how a company serves its target market and whether it is able to turn a profit. Any change in one of the forces might mean that a compa ny has to re-evaluate its environment and realign its business practices and strategies.An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.Composition of ForcesWithin each industry, the effect of different forces will be different. This is why it becomes imperative to develop this model separately for every industry even if the same company is competing across different markets and industries. As an example, the airline industry has fierce competition among the two producers, Airbus and Boeing. The bargaining power of the buyers, all airlines, is fairly high. On the other hand, there is almost no threat of new entry into the market given high degrees of proprietary knowledge and high investments. There is also no threat of substitutes and the power of suppliers is also generally benign. On the other hand in the film business, there is a hi gh threat of substitutes from various other forms of entertainment. In addition, the power of suppliers (e.g. filmmakers, etc.) is also high as they supply the vital most input for the industry.Whatever the industry, there may be one or two forces that end up driving all strategy formation. It is not always easy to determine which force is the key one. An obvious force may not be the one increasing or decreasing profitability.HistoryIn 1979, Harvard Business School professor Michael E. Porter developed the five forces model. It was his first article for the Harvard Business review titles “How Competitive Forces Shape Strategy”. It was later detailed in his book on Competitive strategy. This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factors in an organization’s environment.Porter’s work has been recognized as extremely important in the field. Despite criticisms regarding its applicability in a much altered world, it re mains one of the most widely used methods of industry analysis.The Five Competitive Forces That Shape Strategy Interview With Michael E. Porter PORTERS FIVE FORCESThe five forces identified by Porter are divided into:Horizontal forces: Threat of substitutes, threat of new entrants, competitive rivalryVertical forces: Bargaining power of buyers and bargaining power of customers1. Competitive RivalryOne important force that Porter describes is the degree of rivalry between existing companies in the market. If there are more companies competing with each other, the resulting competitive pressure will mean that prices, profits and strategy will be driven by it.One company may end up having little or no power in its own industry if there is a variety of quality products are offered in the market in direct competition with it. Customers have the option of simply moving on to a different company easily. Conversely, in the absence of this rivalry, the company may be able to freely set pric es and profit margins without being dictated by what the customer finds attractive.When is competitive rivalry high?Competitive rivalry may be higher when:Similar sized companies operate in one marketThese companies have similar strategiesProducts on offer have similar features and offer the same benefitsGrowth in the industry is slowThere are high barriers to exit or low barriers to entry  2. Threat of new EntrantsThe competitive threat to a company’s business may not only be from existing players in the market but also from potential new entrants into the market place. If an industry is profitable, or attractive in a long term strategic manner, then it will be attractive to new companies. Unless there are barriers to entry in place, new firms may easily enter the market and change the dynamics of the industry.The particular dynamics of an industry that restrict entry into it are called barriers to entry The most attractive scenario for a new company is when a potential market ha s low barriers to exit but high barriers to entry. The economics of any industry will determine the level of difficulty faced when trying to enter this market.When are barriers for new entrants high?Barriers to entry may stem from things like:patents and proprietary knowledgeaccess to specialized technology or infrastructureeconomies of scale or government driven obstacleshigh initial investment neededhigh switching costs for consumers, loyal consumersdifficulty in accessing raw material and difficulty in accessing distribution channels3. Threat of SubstitutesWithin the framework defined by Porter, substitute products are those that exist in another industry but may be used to fulfill the same need. The more substitutes that exist for a product, the larger the company’s competitive environment and the lower the potential for profit. An example of this is that for a boxed juice producer, fresh juice, water and soft drinks are all substitutes though they exist in separate categories .A high threat of substitutes will impact a company’s ability to set prices that it wants. If a substitute is priced lower or fulfills a need better than it may end up attracting consumers towards it and reduce sales for existing companies.When is there a threat from substitutes?The threat of substitutes is affected by factors such as brand loyalty, switching costs, relative prices, as well as trends and fads.4. Bargaining Power of BuyersWhen buyers have the power to affect prices in an industry, it becomes an important factor to consider for a company.When is buyer power high?Buyers tend to have power over an industry if they are important to the company, this may be if the industry is such that buyers either buy in bulk, or can easily switch to another supplier. A limited number of strong buyers may be able to exert significant control over a seller. In addition, if a product is similar to its competitor with little or no differentiation, then there are chances that the company may need to let the supplier dictate terms in order to avoid losing the customer.5. Bargaining Power of SuppliersSuppliers provide the raw material needed to provide a good or service. This means that there is usually a need to maintain strong steady relationships with suppliers. Depending on the industry dynamics, suppliers may be in the position to dictate terms, set prices and determine availability timelines. Powerful suppliers may be able to increase costs without affecting their own sales volume or reduce quantities that they sell.  When do suppliers have power?Supplier may enjoy more power if there are less of them. Costs of switching to an alternate are high, or there are no alternates. A supplier may also be the only provider of a certain raw material. This may be the case in instances where a supplier holds a patent or have proprietary knowledge. Because of a lack of alternates, they may be able to withhold quantities or increase prices without losing sales.  HOW TO USE TH E MODELThe Porters five forces model is often used as a  starting point to evaluate a company’s position in its industry and to assess its level of competitiveness. Though this framework is generic and applicable to any industry, it is only effective if it is used in a specific context that applies directly to the company undertaking the evaluation.Porter also emphasized the importance of using this model at more basic industry level. If an organization operates in different industries, then it must develop a separate five forces model for each of its industries.  Steps To Follow When Performing AnalysisA company may follow three basic steps when performing an industry analysis,Gather information on each forceDuring the first step, the company should gather information about their industry using the five forces as a guide for classifying this information.Analyze results and display in a diagramAfter substantial information has been gathered, a team may sit down and analyze how eac h of the identified factors affect the industry. Every industry will have different factors affecting it differently. This makes it vital to not compare across industries or use another industry’s data.Formulate Strategy based on conclusions The analysis of factors affecting the industry can now be translated into specific strategies to further the interests of the company.Navigating the Model Development: Before, During and AfterIt is beneficial for a company working on a Porters five forces analysis to maintain an analytical frame of mind before the process begins, during the process and after everything has been completed. Some aspects to keep in mind are:BeforeUnderstand the goals of the analysis and expectations from itUnderstand the scope of the analysis and who are the potential beneficiariesAllow open and honest brainstorming session regarding these questions.DuringKeep a focus on the futureDo not focus on what could’ve been done better in the past, but focus on future i mprovementsAnalyze positives and negativesBe open to new ideas and possibilitiesAfterIdentify lessons learnt and how they can be used in the futureDocument positives and negatives. Identify best practicesUnderstand whether the analysis had the required impactFollow up on implementation plansRecord information from the analysis to be used in future decisionsPorters Five Forces of Analysis: How to Determine the Attractiveness of an Industry Models DOS and DONTSAs with any framework, there are specific ways to use this one successfully. In order to gain any benefits from a Porters five forces analysis it should:Not  be used on an individual company but rather in the entire industry. These findings can then be used to devise strategies for the company itself.Be used when there are at least three or more competing firms in the marketConsider the impact of the government on the industryConsider which stage in the lifecycle the industry isConsider the changing nature of industries and mark ets  CRITICISMSOver the years, people have challenged underlying principlesthat Porter based his five forces model on. Some of these criticisms have been:Doubtful AssumptionsAcademics such as Stewart Neill, have taken exception to what they call the three dubious assumptions made within the model. These are:The assumption that buyers, competitors and suppliers are separate entities that never interact, never collude and never influence each other directlyThe assumption that structural advantage or the creation of entry barriers is the source of valueThe assumption that there is always low uncertainty which allows participants in a market to always be able to plan ahead and counter competitor actions.The 6th ForceThrough game theory, Adam Brandenburger and Barry Nalebuff of Yale, added a new concept to the Porters five forces model. In the mid 1990s, they proposed the idea of complementary force which may have been termed a 6th force by Andrew Grove, former CEO Intel. These complemen tary forces may be the government or the public.Porter himself countered this addition to the model by the assertion that the government or public are factors that affect the five forces.EXAMPLES  IKEA © Flickr | Greg EmmerichThe five forces model was developed by Michael E. Porter to help companies assess the nature of an industry’s competitiveness and develop corporate strategies accordingly. The framework allows a business to identify and analyze the important forces that determine the profitability of an industry.In this article, we will study the Porters five forces model for industry analysis. We will look at 1) introduction to the model, 2) Porters five forces, 3) how to use the model, 4) model dos and donts, 5) criticisms of the model, and 6) example IKEA.INTRODUCTION Through his model, Porter classifies five main competitive forces that affect any market and all industries. It is these forces that determine how much competition will exist in a market and consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim to shape these forces to its advantage to strengthen the organizations position in the industry.For the purpose of this model, industry attractiveness is the overall profitability potential of the industry. An attractive industry will be one where the combined power of the competitive forces will increase profitability potential. While an unattractive industry will be one where the collective impact of the forces will drive down profitability potential.These forces, termed as the micro environment by Porter, influence how a company serves its target market and whether it is able to turn a profit. Any change in one of the forces might mean that a company has to re-evaluate its environment and realign its business practices and strategies.An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.Composition of ForcesWithin each industry, the effect of different forces will be different. This is why it becomes imperative to develo p this model separately for every industry even if the same company is competing across different markets and industries. As an example, the airline industry has fierce competition among the two producers, Airbus and Boeing. The bargaining power of the buyers, all airlines, is fairly high. On the other hand, there is almost no threat of new entry into the market given high degrees of proprietary knowledge and high investments. There is also no threat of substitutes and the power of suppliers is also generally benign. On the other hand in the film business, there is a high threat of substitutes from various other forms of entertainment. In addition, the power of suppliers (e.g. filmmakers, etc.) is also high as they supply the vital most input for the industry.Whatever the industry, there may be one or two forces that end up driving all strategy formation. It is not always easy to determine which force is the key one. An obvious force may not be the one increasing or decreasing profi tability.HistoryIn 1979, Harvard Business School professor Michael E. Porter developed the five forces model. It was his first article for the Harvard Business review titles “How Competitive Forces Shape Strategy”. It was later detailed in his book on Competitive strategy. This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factors in an organization’s environment.Porter’s work has been recognized as extremely important in the field. Despite criticisms regarding its applicability in a much altered world, it remains one of the most widely used methods of industry analysis.The Five Competitive Forces That Shape Strategy Interview With Michael E. Porter PORTERS FIVE FORCESThe five forces identified by Porter are divided into:Horizontal forces: Threat of substitutes, threat of new entrants, competitive rivalryVertical forces: Bargaining power of buyers and bargaining power of customers1. Competitive RivalryOne important force that Porter describes is the degree of rivalry between existing companies in the market. If there are more companies competing with each other, the resulting competitive pressure will mean that prices, profits and strategy will be driven by it.One company may end up having little or no power in its own industry if there is a variety of quality products are offered in the market in direct competition with it. Customers have the option of simply moving on to a different company easily. Conversely, in the absence of this rivalry, the company may be able to freely set prices and profit margins without being dictated by what the customer finds attractive.When is competitive rivalry high?Competitive rivalry may be higher when:Similar sized companies operate in one marketThese companies have similar strategiesProducts on offer have similar features and offer the same benefitsGrowth in the industry is slowThere are high barriers to exit or low barriers to entry  2. Threat of new EntrantsTh e competitive threat to a company’s business may not only be from existing players in the market but also from potential new entrants into the market place. If an industry is profitable, or attractive in a long term strategic manner, then it will be attractive to new companies. Unless there are barriers to entry in place, new firms may easily enter the market and change the dynamics of the industry.The particular dynamics of an industry that restrict entry into it are called barriers to entry The most attractive scenario for a new company is when a potential market has low barriers to exit but high barriers to entry. The economics of any industry will determine the level of difficulty faced when trying to enter this market.When are barriers for new entrants high?Barriers to entry may stem from things like:patents and proprietary knowledgeaccess to specialized technology or infrastructureeconomies of scale or government driven obstacleshigh initial investment neededhigh switching c osts for consumers, loyal consumersdifficulty in accessing raw material and difficulty in accessing distribution channels3. Threat of SubstitutesWithin the framework defined by Porter, substitute products are those that exist in another industry but may be used to fulfill the same need. The more substitutes that exist for a product, the larger the company’s competitive environment and the lower the potential for profit. An example of this is that for a boxed juice producer, fresh juice, water and soft drinks are all substitutes though they exist in separate categories.A high threat of substitutes will impact a company’s ability to set prices that it wants. If a substitute is priced lower or fulfills a need better than it may end up attracting consumers towards it and reduce sales for existing companies.When is there a threat from substitutes?The threat of substitutes is affected by factors such as brand loyalty, switching costs, relative prices, as well as trends and fads.4. Bar gaining Power of BuyersWhen buyers have the power to affect prices in an industry, it becomes an important factor to consider for a company.When is buyer power high?Buyers tend to have power over an industry if they are important to the company, this may be if the industry is such that buyers either buy in bulk, or can easily switch to another supplier. A limited number of strong buyers may be able to exert significant control over a seller. In addition, if a product is similar to its competitor with little or no differentiation, then there are chances that the company may need to let the supplier dictate terms in order to avoid losing the customer.5. Bargaining Power of SuppliersSuppliers provide the raw material needed to provide a good or service. This means that there is usually a need to maintain strong steady relationships with suppliers. Depending on the industry dynamics, suppliers may be in the position to dictate terms, set prices and determine availability timelines. Powe rful suppliers may be able to increase costs without affecting their own sales volume or reduce quantities that they sell.  When do suppliers have power?Supplier may enjoy more power if there are less of them. Costs of switching to an alternate are high, or there are no alternates. A supplier may also be the only provider of a certain raw material. This may be the case in instances where a supplier holds a patent or have proprietary knowledge. Because of a lack of alternates, they may be able to withhold quantities or increase prices without losing sales.  HOW TO USE THE MODELThe Porters five forces model is often used as a  starting point to evaluate a company’s position in its industry and to assess its level of competitiveness. Though this framework is generic and applicable to any industry, it is only effective if it is used in a specific context that applies directly to the company undertaking the evaluation.Porter also emphasized the importance of using this model at more ba sic industry level. If an organization operates in different industries, then it must develop a separate five forces model for each of its industries.  Steps To Follow When Performing AnalysisA company may follow three basic steps when performing an industry analysis,Gather information on each forceDuring the first step, the company should gather information about their industry using the five forces as a guide for classifying this information.Analyze results and display in a diagramAfter substantial information has been gathered, a team may sit down and analyze how each of the identified factors affect the industry. Every industry will have different factors affecting it differently. This makes it vital to not compare across industries or use another industry’s data.Formulate Strategy based on conclusions The analysis of factors affecting the industry can now be translated into specific strategies to further the interests of the company.Navigating the Model Development: Before, D uring and AfterIt is beneficial for a company working on a Porters five forces analysis to maintain an analytical frame of mind before the process begins, during the process and after everything has been completed. Some aspects to keep in mind are:BeforeUnderstand the goals of the analysis and expectations from itUnderstand the scope of the analysis and who are the potential beneficiariesAllow open and honest brainstorming session regarding these questions.DuringKeep a focus on the futureDo not focus on what could’ve been done better in the past, but focus on future improvementsAnalyze positives and negativesBe open to new ideas and possibilitiesAfterIdentify lessons learnt and how they can be used in the futureDocument positives and negatives. Identify best practicesUnderstand whether the analysis had the required impactFollow up on implementation plansRecord information from the analysis to be used in future decisionsPorters Five Forces of Analysis: How to Determine the Attracti veness of an Industry Models DOS and DONTSAs with any framework, there are specific ways to use this one successfully. In order to gain any benefits from a Porters five forces analysis it should:Not  be used on an individual company but rather in the entire industry. These findings can then be used to devise strategies for the company itself.Be used when there are at least three or more competing firms in the marketConsider the impact of the government on the industryConsider which stage in the lifecycle the industry isConsider the changing nature of industries and markets  CRITICISMSOver the years, people have challenged underlying principlesthat Porter based his five forces model on. Some of these criticisms have been:Doubtful AssumptionsAcademics such as Stewart Neill, have taken exception to what they call the three dubious assumptions made within the model. These are:The assumption that buyers, competitors and suppliers are separate entities that never interact, never collude a nd never influence each other directlyThe assumption that structural advantage or the creation of entry barriers is the source of valueThe assumption that there is always low uncertainty which allows participants in a market to always be able to plan ahead and counter competitor actions.The 6th ForceThrough game theory, Adam Brandenburger and Barry Nalebuff of Yale, added a new concept to the Porters five forces model. In the mid 1990s, they proposed the idea of complementary force which may have been termed a 6th force by Andrew Grove, former CEO Intel. These complementary forces may be the government or the public.Porter himself countered this addition to the model by the assertion that the government or public are factors that affect the five forces.EXAMPLES  IKEA © Wikimedia commonsIKEA is a Swedish company that sells furniture and home accessories. The furniture is modern and ready to assemble. As of 2008, it was the biggest retailer of furniture in the world. It was created in 1943 by 17 year old Ingvar Kamprad. In addition to simplistic furniture design and eco friendly solutions, the company is known to control costs, focus on operational details and efficiency and a continuous focus on new product development. This strategy has allowed the company to maintain its low costs over the years. At present, there are 349 IKEA stores in 43 countries.Porters Five Forces Analysis for IKEACompetitive RivalryThere is significant competition in the discount furniture market with companies like Ashley Furniture Home Stores, Home Depot or other local players. But IKEA has managed to create a clear differentiated position in the market and remains the global market leader in its industry.Threat of new EntrantsThere is little threat from new entrants. T he requisite expertise is difficult to replicate and financial investments are significantly high. In addition the market is saturated enough with the existing players that there is little attraction for a competitor large enough to threaten IKEA’s position.Threat of SubstitutesThere is little threat of substitutes as the target market for IKEA is unlikely to switch to higher end more classic styles of furniture. There are not many alternates that offer the breadth of options that are available at IKEA.Bargaining Power of Buyers There is enough competition in the market to afford some power to the buyers in the industry. Since IKEA has built up its USP with its competitive prices, customers can choose to switch if there is any increase in the prices. There is little switching cost, though loyalty may be a factor that prevents a switch.Bargaining Power of SuppliersSuppliers do not have substantial bargaining power as there many options available to IKEA around the world. There are numerous factories that have the requisite expertise to partner with IKEA. Despite this IKEA attempts to firm long term strategic partnerships with suppliers which benefits both supplier and the firm.Porters Five Forces Model Image credit:  Flickr | Greg Emmerich under Attribution-ShareAlike 2.0 Generic, Wikimedia commons under public domain.

Porters Five Forces Model

Porters Five Forces Model INTRODUCTION Through his model, Porter classifies five main competitive forces that affect any market and all industries. It is these forces that determine how much competition will exist in a market and consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim to shape these forces to its advantage to strengthen the organizations position in the industry.For the purpose of this model, industry attractiveness is the overall profitability potential of the industry. An attractive industry will be one where the combined power of the competitive forces will increase profitability potential. While an unattractive industry will be one where the collective impact of the forces will drive down profitability potential.These forces, termed as the micro environment by Porter, influence how a company serves its target market and whether it is able to turn a profit. Any change in one of the forces might mean that a compa ny has to re-evaluate its environment and realign its business practices and strategies.An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.Composition of ForcesWithin each industry, the effect of different forces will be different. This is why it becomes imperative to develop this model separately for every industry even if the same company is competing across different markets and industries. As an example, the airline industry has fierce competition among the two producers, Airbus and Boeing. The bargaining power of the buyers, all airlines, is fairly high. On the other hand, there is almost no threat of new entry into the market given high degrees of proprietary knowledge and high investments. There is also no threat of substitutes and the power of suppliers is also generally benign. On the other hand in the film business, there is a hi gh threat of substitutes from various other forms of entertainment. In addition, the power of suppliers (e.g. filmmakers, etc.) is also high as they supply the vital most input for the industry.Whatever the industry, there may be one or two forces that end up driving all strategy formation. It is not always easy to determine which force is the key one. An obvious force may not be the one increasing or decreasing profitability.HistoryIn 1979, Harvard Business School professor Michael E. Porter developed the five forces model. It was his first article for the Harvard Business review titles “How Competitive Forces Shape Strategy”. It was later detailed in his book on Competitive strategy. This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factors in an organization’s environment.Porter’s work has been recognized as extremely important in the field. Despite criticisms regarding its applicability in a much altered world, it re mains one of the most widely used methods of industry analysis.The Five Competitive Forces That Shape Strategy Interview With Michael E. Porter PORTERS FIVE FORCESThe five forces identified by Porter are divided into:Horizontal forces: Threat of substitutes, threat of new entrants, competitive rivalryVertical forces: Bargaining power of buyers and bargaining power of customers1. Competitive RivalryOne important force that Porter describes is the degree of rivalry between existing companies in the market. If there are more companies competing with each other, the resulting competitive pressure will mean that prices, profits and strategy will be driven by it.One company may end up having little or no power in its own industry if there is a variety of quality products are offered in the market in direct competition with it. Customers have the option of simply moving on to a different company easily. Conversely, in the absence of this rivalry, the company may be able to freely set pric es and profit margins without being dictated by what the customer finds attractive.When is competitive rivalry high?Competitive rivalry may be higher when:Similar sized companies operate in one marketThese companies have similar strategiesProducts on offer have similar features and offer the same benefitsGrowth in the industry is slowThere are high barriers to exit or low barriers to entry  2. Threat of new EntrantsThe competitive threat to a company’s business may not only be from existing players in the market but also from potential new entrants into the market place. If an industry is profitable, or attractive in a long term strategic manner, then it will be attractive to new companies. Unless there are barriers to entry in place, new firms may easily enter the market and change the dynamics of the industry.The particular dynamics of an industry that restrict entry into it are called barriers to entry The most attractive scenario for a new company is when a potential market ha s low barriers to exit but high barriers to entry. The economics of any industry will determine the level of difficulty faced when trying to enter this market.When are barriers for new entrants high?Barriers to entry may stem from things like:patents and proprietary knowledgeaccess to specialized technology or infrastructureeconomies of scale or government driven obstacleshigh initial investment neededhigh switching costs for consumers, loyal consumersdifficulty in accessing raw material and difficulty in accessing distribution channels3. Threat of SubstitutesWithin the framework defined by Porter, substitute products are those that exist in another industry but may be used to fulfill the same need. The more substitutes that exist for a product, the larger the company’s competitive environment and the lower the potential for profit. An example of this is that for a boxed juice producer, fresh juice, water and soft drinks are all substitutes though they exist in separate categories .A high threat of substitutes will impact a company’s ability to set prices that it wants. If a substitute is priced lower or fulfills a need better than it may end up attracting consumers towards it and reduce sales for existing companies.When is there a threat from substitutes?The threat of substitutes is affected by factors such as brand loyalty, switching costs, relative prices, as well as trends and fads.4. Bargaining Power of BuyersWhen buyers have the power to affect prices in an industry, it becomes an important factor to consider for a company.When is buyer power high?Buyers tend to have power over an industry if they are important to the company, this may be if the industry is such that buyers either buy in bulk, or can easily switch to another supplier. A limited number of strong buyers may be able to exert significant control over a seller. In addition, if a product is similar to its competitor with little or no differentiation, then there are chances that the company may need to let the supplier dictate terms in order to avoid losing the customer.5. Bargaining Power of SuppliersSuppliers provide the raw material needed to provide a good or service. This means that there is usually a need to maintain strong steady relationships with suppliers. Depending on the industry dynamics, suppliers may be in the position to dictate terms, set prices and determine availability timelines. Powerful suppliers may be able to increase costs without affecting their own sales volume or reduce quantities that they sell.  When do suppliers have power?Supplier may enjoy more power if there are less of them. Costs of switching to an alternate are high, or there are no alternates. A supplier may also be the only provider of a certain raw material. This may be the case in instances where a supplier holds a patent or have proprietary knowledge. Because of a lack of alternates, they may be able to withhold quantities or increase prices without losing sales.  HOW TO USE TH E MODELThe Porters five forces model is often used as a  starting point to evaluate a company’s position in its industry and to assess its level of competitiveness. Though this framework is generic and applicable to any industry, it is only effective if it is used in a specific context that applies directly to the company undertaking the evaluation.Porter also emphasized the importance of using this model at more basic industry level. If an organization operates in different industries, then it must develop a separate five forces model for each of its industries.  Steps To Follow When Performing AnalysisA company may follow three basic steps when performing an industry analysis,Gather information on each forceDuring the first step, the company should gather information about their industry using the five forces as a guide for classifying this information.Analyze results and display in a diagramAfter substantial information has been gathered, a team may sit down and analyze how eac h of the identified factors affect the industry. Every industry will have different factors affecting it differently. This makes it vital to not compare across industries or use another industry’s data.Formulate Strategy based on conclusions The analysis of factors affecting the industry can now be translated into specific strategies to further the interests of the company.Navigating the Model Development: Before, During and AfterIt is beneficial for a company working on a Porters five forces analysis to maintain an analytical frame of mind before the process begins, during the process and after everything has been completed. Some aspects to keep in mind are:BeforeUnderstand the goals of the analysis and expectations from itUnderstand the scope of the analysis and who are the potential beneficiariesAllow open and honest brainstorming session regarding these questions.DuringKeep a focus on the futureDo not focus on what could’ve been done better in the past, but focus on future i mprovementsAnalyze positives and negativesBe open to new ideas and possibilitiesAfterIdentify lessons learnt and how they can be used in the futureDocument positives and negatives. Identify best practicesUnderstand whether the analysis had the required impactFollow up on implementation plansRecord information from the analysis to be used in future decisionsPorters Five Forces of Analysis: How to Determine the Attractiveness of an Industry Models DOS and DONTSAs with any framework, there are specific ways to use this one successfully. In order to gain any benefits from a Porters five forces analysis it should:Not  be used on an individual company but rather in the entire industry. These findings can then be used to devise strategies for the company itself.Be used when there are at least three or more competing firms in the marketConsider the impact of the government on the industryConsider which stage in the lifecycle the industry isConsider the changing nature of industries and mark ets  CRITICISMSOver the years, people have challenged underlying principlesthat Porter based his five forces model on. Some of these criticisms have been:Doubtful AssumptionsAcademics such as Stewart Neill, have taken exception to what they call the three dubious assumptions made within the model. These are:The assumption that buyers, competitors and suppliers are separate entities that never interact, never collude and never influence each other directlyThe assumption that structural advantage or the creation of entry barriers is the source of valueThe assumption that there is always low uncertainty which allows participants in a market to always be able to plan ahead and counter competitor actions.The 6th ForceThrough game theory, Adam Brandenburger and Barry Nalebuff of Yale, added a new concept to the Porters five forces model. In the mid 1990s, they proposed the idea of complementary force which may have been termed a 6th force by Andrew Grove, former CEO Intel. These complemen tary forces may be the government or the public.Porter himself countered this addition to the model by the assertion that the government or public are factors that affect the five forces.EXAMPLES  IKEA © Flickr | Greg EmmerichThe five forces model was developed by Michael E. Porter to help companies assess the nature of an industry’s competitiveness and develop corporate strategies accordingly. The framework allows a business to identify and analyze the important forces that determine the profitability of an industry.In this article, we will study the Porters five forces model for industry analysis. We will look at 1) introduction to the model, 2) Porters five forces, 3) how to use the model, 4) model dos and donts, 5) criticisms of the model, and 6) example IKEA.INTRODUCTION Through his model, Porter classifies five main competitive forces that affect any market and all industries. It is these forces that determine how much competition will exist in a market and consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim to shape these forces to its advantage to strengthen the organizations position in the industry.For the purpose of this model, industry attractiveness is the overall profitability potential of the industry. An attractive industry will be one where the combined power of the competitive forces will increase profitability potential. While an unattractive industry will be one where the collective impact of the forces will drive down profitability potential.These forces, termed as the micro environment by Porter, influence how a company serves its target market and whether it is able to turn a profit. Any change in one of the forces might mean that a company has to re-evaluate its environment and realign its business practices and strategies.An attractive market place does not mean that all companies will enjoy similar success levels. Rather, the unique selling propositions, strategies and processes will put one company over the other.Composition of ForcesWithin each industry, the effect of different forces will be different. This is why it becomes imperative to develo p this model separately for every industry even if the same company is competing across different markets and industries. As an example, the airline industry has fierce competition among the two producers, Airbus and Boeing. The bargaining power of the buyers, all airlines, is fairly high. On the other hand, there is almost no threat of new entry into the market given high degrees of proprietary knowledge and high investments. There is also no threat of substitutes and the power of suppliers is also generally benign. On the other hand in the film business, there is a high threat of substitutes from various other forms of entertainment. In addition, the power of suppliers (e.g. filmmakers, etc.) is also high as they supply the vital most input for the industry.Whatever the industry, there may be one or two forces that end up driving all strategy formation. It is not always easy to determine which force is the key one. An obvious force may not be the one increasing or decreasing profi tability.HistoryIn 1979, Harvard Business School professor Michael E. Porter developed the five forces model. It was his first article for the Harvard Business review titles “How Competitive Forces Shape Strategy”. It was later detailed in his book on Competitive strategy. This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factors in an organization’s environment.Porter’s work has been recognized as extremely important in the field. Despite criticisms regarding its applicability in a much altered world, it remains one of the most widely used methods of industry analysis.The Five Competitive Forces That Shape Strategy Interview With Michael E. Porter PORTERS FIVE FORCESThe five forces identified by Porter are divided into:Horizontal forces: Threat of substitutes, threat of new entrants, competitive rivalryVertical forces: Bargaining power of buyers and bargaining power of customers1. Competitive RivalryOne important force that Porter describes is the degree of rivalry between existing companies in the market. If there are more companies competing with each other, the resulting competitive pressure will mean that prices, profits and strategy will be driven by it.One company may end up having little or no power in its own industry if there is a variety of quality products are offered in the market in direct competition with it. Customers have the option of simply moving on to a different company easily. Conversely, in the absence of this rivalry, the company may be able to freely set prices and profit margins without being dictated by what the customer finds attractive.When is competitive rivalry high?Competitive rivalry may be higher when:Similar sized companies operate in one marketThese companies have similar strategiesProducts on offer have similar features and offer the same benefitsGrowth in the industry is slowThere are high barriers to exit or low barriers to entry  2. Threat of new EntrantsTh e competitive threat to a company’s business may not only be from existing players in the market but also from potential new entrants into the market place. If an industry is profitable, or attractive in a long term strategic manner, then it will be attractive to new companies. Unless there are barriers to entry in place, new firms may easily enter the market and change the dynamics of the industry.The particular dynamics of an industry that restrict entry into it are called barriers to entry The most attractive scenario for a new company is when a potential market has low barriers to exit but high barriers to entry. The economics of any industry will determine the level of difficulty faced when trying to enter this market.When are barriers for new entrants high?Barriers to entry may stem from things like:patents and proprietary knowledgeaccess to specialized technology or infrastructureeconomies of scale or government driven obstacleshigh initial investment neededhigh switching c osts for consumers, loyal consumersdifficulty in accessing raw material and difficulty in accessing distribution channels3. Threat of SubstitutesWithin the framework defined by Porter, substitute products are those that exist in another industry but may be used to fulfill the same need. The more substitutes that exist for a product, the larger the company’s competitive environment and the lower the potential for profit. An example of this is that for a boxed juice producer, fresh juice, water and soft drinks are all substitutes though they exist in separate categories.A high threat of substitutes will impact a company’s ability to set prices that it wants. If a substitute is priced lower or fulfills a need better than it may end up attracting consumers towards it and reduce sales for existing companies.When is there a threat from substitutes?The threat of substitutes is affected by factors such as brand loyalty, switching costs, relative prices, as well as trends and fads.4. Bar gaining Power of BuyersWhen buyers have the power to affect prices in an industry, it becomes an important factor to consider for a company.When is buyer power high?Buyers tend to have power over an industry if they are important to the company, this may be if the industry is such that buyers either buy in bulk, or can easily switch to another supplier. A limited number of strong buyers may be able to exert significant control over a seller. In addition, if a product is similar to its competitor with little or no differentiation, then there are chances that the company may need to let the supplier dictate terms in order to avoid losing the customer.5. Bargaining Power of SuppliersSuppliers provide the raw material needed to provide a good or service. This means that there is usually a need to maintain strong steady relationships with suppliers. Depending on the industry dynamics, suppliers may be in the position to dictate terms, set prices and determine availability timelines. Powe rful suppliers may be able to increase costs without affecting their own sales volume or reduce quantities that they sell.  When do suppliers have power?Supplier may enjoy more power if there are less of them. Costs of switching to an alternate are high, or there are no alternates. A supplier may also be the only provider of a certain raw material. This may be the case in instances where a supplier holds a patent or have proprietary knowledge. Because of a lack of alternates, they may be able to withhold quantities or increase prices without losing sales.  HOW TO USE THE MODELThe Porters five forces model is often used as a  starting point to evaluate a company’s position in its industry and to assess its level of competitiveness. Though this framework is generic and applicable to any industry, it is only effective if it is used in a specific context that applies directly to the company undertaking the evaluation.Porter also emphasized the importance of using this model at more ba sic industry level. If an organization operates in different industries, then it must develop a separate five forces model for each of its industries.  Steps To Follow When Performing AnalysisA company may follow three basic steps when performing an industry analysis,Gather information on each forceDuring the first step, the company should gather information about their industry using the five forces as a guide for classifying this information.Analyze results and display in a diagramAfter substantial information has been gathered, a team may sit down and analyze how each of the identified factors affect the industry. Every industry will have different factors affecting it differently. This makes it vital to not compare across industries or use another industry’s data.Formulate Strategy based on conclusions The analysis of factors affecting the industry can now be translated into specific strategies to further the interests of the company.Navigating the Model Development: Before, D uring and AfterIt is beneficial for a company working on a Porters five forces analysis to maintain an analytical frame of mind before the process begins, during the process and after everything has been completed. Some aspects to keep in mind are:BeforeUnderstand the goals of the analysis and expectations from itUnderstand the scope of the analysis and who are the potential beneficiariesAllow open and honest brainstorming session regarding these questions.DuringKeep a focus on the futureDo not focus on what could’ve been done better in the past, but focus on future improvementsAnalyze positives and negativesBe open to new ideas and possibilitiesAfterIdentify lessons learnt and how they can be used in the futureDocument positives and negatives. Identify best practicesUnderstand whether the analysis had the required impactFollow up on implementation plansRecord information from the analysis to be used in future decisionsPorters Five Forces of Analysis: How to Determine the Attracti veness of an Industry Models DOS and DONTSAs with any framework, there are specific ways to use this one successfully. In order to gain any benefits from a Porters five forces analysis it should:Not  be used on an individual company but rather in the entire industry. These findings can then be used to devise strategies for the company itself.Be used when there are at least three or more competing firms in the marketConsider the impact of the government on the industryConsider which stage in the lifecycle the industry isConsider the changing nature of industries and markets  CRITICISMSOver the years, people have challenged underlying principlesthat Porter based his five forces model on. Some of these criticisms have been:Doubtful AssumptionsAcademics such as Stewart Neill, have taken exception to what they call the three dubious assumptions made within the model. These are:The assumption that buyers, competitors and suppliers are separate entities that never interact, never collude a nd never influence each other directlyThe assumption that structural advantage or the creation of entry barriers is the source of valueThe assumption that there is always low uncertainty which allows participants in a market to always be able to plan ahead and counter competitor actions.The 6th ForceThrough game theory, Adam Brandenburger and Barry Nalebuff of Yale, added a new concept to the Porters five forces model. In the mid 1990s, they proposed the idea of complementary force which may have been termed a 6th force by Andrew Grove, former CEO Intel. These complementary forces may be the government or the public.Porter himself countered this addition to the model by the assertion that the government or public are factors that affect the five forces.EXAMPLES  IKEA © Wikimedia commonsIKEA is a Swedish company that sells furniture and home accessories. The furniture is modern and ready to assemble. As of 2008, it was the biggest retailer of furniture in the world. It was created in 1943 by 17 year old Ingvar Kamprad. In addition to simplistic furniture design and eco friendly solutions, the company is known to control costs, focus on operational details and efficiency and a continuous focus on new product development. This strategy has allowed the company to maintain its low costs over the years. At present, there are 349 IKEA stores in 43 countries.Porters Five Forces Analysis for IKEACompetitive RivalryThere is significant competition in the discount furniture market with companies like Ashley Furniture Home Stores, Home Depot or other local players. But IKEA has managed to create a clear differentiated position in the market and remains the global market leader in its industry.Threat of new EntrantsThere is little threat from new entrants. T he requisite expertise is difficult to replicate and financial investments are significantly high. In addition the market is saturated enough with the existing players that there is little attraction for a competitor large enough to threaten IKEA’s position.Threat of SubstitutesThere is little threat of substitutes as the target market for IKEA is unlikely to switch to higher end more classic styles of furniture. There are not many alternates that offer the breadth of options that are available at IKEA.Bargaining Power of Buyers There is enough competition in the market to afford some power to the buyers in the industry. Since IKEA has built up its USP with its competitive prices, customers can choose to switch if there is any increase in the prices. There is little switching cost, though loyalty may be a factor that prevents a switch.Bargaining Power of SuppliersSuppliers do not have substantial bargaining power as there many options available to IKEA around the world. There are numerous factories that have the requisite expertise to partner with IKEA. Despite this IKEA attempts to firm long term strategic partnerships with suppliers which benefits both supplier and the firm.Porters Five Forces Model Image credit:  Flickr | Greg Emmerich under Attribution-ShareAlike 2.0 Generic, Wikimedia commons under public domain.

Learn the Cartesian Plane Distance Formula

Tips Help You Deal With Unwanted Parenting Advice

As soon as you become a mother everyone around you starts acting like a parenting expert or childcare specialist. Your parents, in-laws, friends, cousins, colleagues, neighbors and even random people you meet in supermarkets or bus journeys offer you generous doses of advice on what you should and should not do as a parent. Unwanted and unsolicited advice from strangers can be dismissed easily with a passive smile or an â€Å"um, thanks†. But things can get hard when harmless, yet annoying parenting advice comes from your family members or people you know personally. Here are a few tips to help you deal with unwanted parenting advice: 1. Don’t dismiss every advice Parenting is a hard task in itself and it can become harder when you have a bunch of people around you giving directions and instructions. The danger of keeping yourself exposed to a plethora of advice is that you start losing perspective after a while. You lose the ability to identify good advice from bad. There can be people who are genuinely trying to help you out because they have undergone what you are going through right now. That your colleague asked you to stop succumbing to toddler tantrums may only mean she too has a tantrum throwing kid. The primary rule here is not to dismiss every advice that comes your way. Keep your head calm and try to identify if an advice is stemming from genuine concern or a need to sound knowledgeable. 2. Listen before you speak It is quite natural to feel defensive when peopleShow MoreRelatedDefinition of Adolescent Development14194 Words   |  57 Pagessignificant role in facilitating the growth and development of adolescents. Hence it is critical for schools and teachers to understand the various physical, social and psychosocial changes that occur in an individual during this period and ways to deal and help him/her navigate successfully through this stage. Some of the important adolescence problems and worries are briefly described underneath: 1. Becoming Independent: J.A.Hadfield (1962) is of the view, â€Å"when we speak of adolescent as growingRead MoreDefinition of Adolescent Development14200 Words   |  57 Pagessignificant role in facilitating the growth and development of adolescents. Hence it is critical for schools and teachers to understand the various physical, social and psychosocial changes that occur in an individual during this period and ways to deal and help him/her navigate successfully through this stage. Some of the important adolescence problems and worries are briefly described underneath: 1. Becoming Independent: J.A.Hadfield (1962) is of the view, â€Å"when we speak of adolescent as growingRead MoreThesis, Term Paper, Essay, Research Paper21993 Words   |  88 Pagesdevelopment is currently under way. This study is conducted by Birth to Twenty, a non-government research organisation. One area of focus of this study is the emergence of sexual and lifestyle risk factors during adolescence, particularly risk behaviour, unwanted pregnancy, exposure to sexually transmitted infection etc (Birth to Twenty, 2005). The Reproductive Health Research Unit (RHRU) is another organisation that plays a leading role in adolescent reproductive health studies and development of interventionRead MoreImpact Of Marketing On Marketing Management9107 Words   |  37 PagesInformation technology growth has impacted the way the CIO of a company contributes to the growth of the company and participates in crucial decision making process. An attempt has been made in this report to study and analyze how the CIO and his team can help the company to gain insight into the customer’s mind and make use of the available data to promote a product or services. In the technically advanced world which methods a CIO can embark to reduce the cost of promoting the product and increasing theRead MoreCase Study148348 Words   |  594 Pageswhich you can search, bookmark, annotate and highlight as you please †¢ Self-assessment questions that identify your strengths before recommending a personalised study plan that points you to the resources which can help you achieve a better grade †¢ Key concept audio summaries that you can download or listen to online †¢ Video cases that show real managers talking about their own organisations †¢ Revision flashcards to help you prepare for your exams †¢ A multi-lingual online glossary to help explainRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hal l393164 Words   |  1573 Pagesmechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, theRead MoreBackground Inditex, One of the Worlds Largest Fashion Distributors, Has Eight Major Sales Formats - Zara, Pull and Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home Y Kiddys Class- with 3.147 Stores in 70100262 Words   |  402 Pagesof support throughout the process. Thank you Thomas; for all your encouragement, your insightful advice, your patience, kindness and all that you have taught me during these years. Thank you also to Hà ¥kan R odhe, my second supervisor, who has not only provided valuable input related to my research and writing, but who has also been a rich source of advice and inspiration when it comes to many other aspects in life ranging from teaching to parenting. Thank you Hà ¥kan; for your support and for always having

Ifacs Evolution Model of Management Accounting - 2827 Words

Introduction In 1989, the understanding of the scope and purposes of management accounting and the concepts which underpinned it was summarized by the International Federation of Accountants (IFAC) in a statement. Later on in 1998, the statement was revised and released as Management Accounting Concepts – Number 1 in the series of International Management Accounting Practice Statements. The purpose of this article is to explain the IFAC’s perspective of the change in management accounting. This can be justified by the author when he surveyed the stages of evolution of the management accounting practices in the food and drinks companies in United Kingdom and used it to further develop and apply the IFAC-based model. Since the 1980’s†¦show more content†¦According to Horngren et al. (2005), management control system is an integrated technique for collecting and using information to motivate employee behaviour and to evaluate performance. The information provided are used by most of the managers to plan the way they want people to perform, then they implement procedures to determine whether actual performance complies with these plans. The information provided are very important to the organization because the information is used as a guide in running the operation and the actual performance of the operation should be measured at the end of year to match with the planning made by the organization. It is a very beneficial way for them to detect when there is underperforming occurred and then appropriate action will be taken. After that, IFAC‘s attention was focused on the reduction of waste in resources used in business processes, through the use of process analysis and cost management technologies by 1985. In this stage, the rapid technological development such as the use of robotics and computer- controlled processes improved the quality of production and also greatly reduce costs. The use of the computers and information technology (IT) is to improve the efficiency and competitiveness of production in the business. The last stage of evolution of the management accounting identified by IFAC is the generation or creation of value through the effective use of resources, which examine the drivers of customerShow MoreRelatedCons and Pros of Internet16245 Words   |  65 PagesAccounting and Business Research, International Accounting Policy Forum. pp. 5-27. 2006 5 International Financial Reporting Standards (IFRS): pros and cons for investors Ray Ball* Abstract—Accounting in shaped by economic and political forces. It follows that increased worldwide integration of both markets and politics (driven by reductions in communications and information processing costs) makes increased integration of financial reporting standards and practice almost inevitable. But most