Need for a Lean Initiatives Paper Research Example | Topics and Well Written Essays - 1250 words

Need for a Lean Initiatives - Research Paper Example Management is a complex function that determines a company success, delivering of affordable goods and quality goods, a trustable delivery and continuous innovation throughout the companies’ entire functioning chains (Arnheiter & Maleyeff, 2005). Determinants of efficient management are measured by the companies’ market network and the shareholder value. If the two factors increase then the companies have realized good management skills. Nike and Adidas are two European countries that work with an aim of outdoing each other from the market by improving their strategic management. Most of the strategies are based on their supply chain and marketability of their products. The aim of this study is to compare and to contrast the management styles of the two companies in the context of how they affect organization behavior. According to Locke and Romis (2012), a lean management system incorporates a strategy that ensures daily progress, meaningful purpose, and lasting value. The Footwear market is characterized by dynamic factors; most of the changes are short period. The demands in the market are not flexible, and the purchases are sometimes high and other times small. Additionally, the products from the manufacturing industry to the market usually follow a short product lifecycle. Adidas Company has instituted lean initiatives in management, focused to decrease the costs and to improve their supply chain processes. However, lean initiatives make the company prone to risks that occur because of relying on other supply chains, elements and other interruptions (Locke & Romis, 2012) Nike Company has adopted a management strategy referred to as a Subcontracting Management Plan. The strategy has advantages for the company marketing strategies, and it ensures that the markets are unique from other companies offering similar products, and the production process is determined by the

Managing Finance Essay Example | Topics and Well Written Essays - 1000 words - 1

Managing Finance - Essay Example Budgetary control and costing processes have been combined to compute variance between budgetary standards and the actual performances. The basic idea is to make adjustments, rectifications, and additions to budgetary control process to attain the set standards and objectivities. â€Å"Variance analysis fulfills this role within organizations. In combined standard costing and budgetary control system, variances can be calculated on either an absorption costing basis or marginal costing basis.†(Michael Broadbent and others, page 151) . Variance analysis is the most important feature of budgetary control, and it is this process that establishes the creditability of the budgeting system. Technically speaking, budgeting plays the role of internal controls that have been made compulsory to install and evaluate under statutes like Sarbanes Oxley Act in the US in the aftermath of accounting scandals like Enron. Therefore, budgetary controls are not only strategically important for an organization, but also socially and morally important for safeguarding the interests of stakeholders.Budgets motivate the organizational system to achieve the laid down objectives. Budgetary control is a constructive exercise to create motivation in the organization. In fact â€Å"the motivation of a budgetee (a manager working in a budget system) is split into two components: the relevance of budget standards to the budgeter's task, and the attitude of the budgetee towards the system.†(G.H.Hofstede, page 3)

Organ Donation Essay Example for Free

Organ Donation Essay Problem Statement: The increase in organ donation results in it being sold as a means of gaining income for many persons in the Jamaican society. It results in the body being viewed as a utilitarian object rather than a metamorphic entity that people can call their own. The ways involved in obtaining organs for usage by medical researchers are inhumane with limited emphasis being placed on the effects the process have on members of the society. Purpose of Study: The purpose of this study is to evaluate the social, economic and ethical issues associated with organ donation and to outline the different methods that could be implemented to regulate the extraction of organs from humans. Research Questions: What are the main economic, social and ethical implications of organ donation in the Jamaican society? Subsidiary Questions What are the different ways in which one may try to obtain organs for sale or scientific studies? What impact does the harvesting of organs have on economical developments in different countries? What are the implications of the uses of organs in the future of health care in Jamaica? Hypothesis: Organs donation accounts for: 1. An increase in the black market 2. exploitation of the human body and 3. leads to the misconception that once a donor gives an organ, the recipient of the organ will survive. Significance: The results obtained from the study will help to enhance information that will educate the public, future researchers and medical professionals about the ways to reduce the economic, social and ethical impacts of organ donation. Literature Review Organ donation is important in improving the quality and the quantity of life of individuals in need of organs in the society. However, the need for increase in organ donation is often affected by ethical, economic and social impacts associated with both the recipients and the donors of the organs. It is with this that an in-depth research was conducted to find out the ways involved in obtaining kidneys for medical usage and the effects the process may have on individuals within the society. Findings showed that once a more structured system is implemented to regulate organ donation, there will be an increase in the number of organs donated and a reduction in the impacts stated above. What is organ donation and what are the different ways in which one may try to obtain organs for sale or scientific studies? Wilkinson (2011) states that organ donation is the removal of tissues and organs with consent from owners or decision makers, such as family members, for the main purpose of transplanting them into other persons. She suggests the many routes in which persons may obtain organ from donors. These include buying it on the black market as it is the cheapest and easier route to go or it may be stolen from the body of deceased persons which poses the risk of exploitation leading to the development of ethical issues. She alludes to the point that the word â€Å"donation† suggests a willing gesture or that permission must be given to facilitate the process of acquiring the organ being transplanted. This is further supported by the fact that humans, before they die, may sign an agreement to have their body donated to medicine and therefore is subjected to organ extraction or even medical researching. Similarly to the views of Wilkinson, Andrews and Nelkins (2001) believes that it is morally incorrect for the body to be exploited by medical professionals and wealthy business men. They support the argument that before medical professionals can begin extracting organs for donation, they should first receive consent from patients and family members of the patients. This is however contradicted by Barnett and Kaserman (2006) who are of the opinion that once the benefit of extracting organs includes saving the life of individuals, it should never have to come down to a consent form to continue the procedure. They are not indicating that consent is not important, however, just by the fact that the patient has signed over all rights of his body to medical professionals to provide treatment and certain important diagnosis; it should not be a problem for organs to be extracted to carry out various studies to improve the quality and quantity of life. As stated by Herring (2002), there may two types of organ donors: living donors and deceased donors (brain dead). In order for the organs of the deceased to be used, there must be enough oxygen in the organ required to last for 18 hours. He is of the opinion that these organs should be acquired by signing of consent forms by family members or by the patient himself before death. When the patient is conscious, he should inform family members his plan to donate organs so as to prevent any disputes after his death. He sees the body as more than an entity that hosts organs. Rather, it is a part of a person’s persona and what makes them who they are. The body should be viewed as a patient one that still has rights and should still be respected. What impact does the harvesting of organs have on economical developments in Jamaica? Firstly, with an increase in the demand for organ donation, there poses strong economical problems amongst various persons involved in the above said situations. Due to its importance, organs are very expensive and may not be accessible by members of the poorer class (Kaserman, 2006). This is problematic as it may result in organs being acquired illegally. It is important to note that for any member of the society (generally that of the poorer class), an organ sale on the black market is much more cost effective than having medical personnel performing the extraction process. Furthermore, this may result in the exploitation of individuals exposed to the black market as professionals for example doctors and medical researchers also purchase kidneys and other organs from the black market, thereby drastically increasing the price of the organs once it reaches in a more formal setting (Wilkinson 2011). This act has created a link between both economic and legal issues as the black market has been deemed illegal in countries such as India, Canada and the United States. Serious consequences may also develop from being an active participant in the black market that could result in jail time or even the payment of fines much greater than that of what the kidneys were sold for. On a more important note, as stated by Taylor (2005), the problems associated with the development of the black market can be alleviated if a more structured system for selling and obtaining organs was implemented. It would help to increase the amount of people willing to donate kidneys and would allow for a cheaper and easily accessible market, making it more economically friendly to members of the poorer class. According to (Brezin 2010) â€Å"†¦if an incentive is given to donors, more organs may be given to the health centers to meet the demand of the organs required.† In other words, each time an individual donates an organ, he or she will be given money for the organ donated. Compensation accounts for hospital visits and follow up examinations, counseling and screen testing to see if the donor is physically and mentally fit, and surgery. However, while there may be an increase in the number of organs donated, it may begin to reduce any profit that might be made by the organizations due to the increase in incentives to compensate the donors. What are the implications of the uses of organs in of health care? According to Taylor (2005), â€Å"there have been numerous deaths due to the failure of organ transplant in patients because of the decrease in organ donation.† In countries such as China and the United States of America, the waiting list for organs is long and approximately 11 individuals die per day from the need of an organ. Even though organizations such as the Organ Procurement and Transplantation Network have been put in place with the aim of educating people about the importance for organ donation, there is still a shortage of organs in the health care system. But why is this so? Organ donation may be beneficial for the recipient, but it often brings struggles to the donor. When organ transplant is successful, approximately 3.5 years is added to the life span of the recipient thus enabling him or her to live a normal and fulfilling life with hardly any complications Bainham (2002). This approximation has helped to relax the psycho-social of family members that were once with the struggle of obtaining organs for their loved ones. However, Andrew and Nelkins (2001) argues the fact that in the case of the live donor, the psychological aspect of dealing with surgery, medical visits and complications months after surgery is the contributing factor that may allow for them not participate in organ donation. More importantly, financial struggles associated with donating such as hospital visits, transportation and follow up examination is overwhelming as donors are often expected to take care of the cost of donation as the system is one which is voluntary. In the Jamaican context, Aaron (2009) supports the fact that establishing an organ and tissue bank will help to save lives and also improve on the quality of life. He elaborates on the point that despite its importance, many Jamaicans are still against the establishment of an organ bank due to cultural and religious reasons. Many Jamaicans are discouraged because of the long waiting list and the shortage of organs. Aaron questions the processes which will be implemented in selecting individuals who will be able to acquire organs and believes that acquiring organs should not be based on how much profit may be made, but rather form an altruistic perspective. Similarly, in an article found in the Gleaner (2000) entitled Organ Transplantation, it was discovered that more than 400 patients are awaiting kidney in the country. It also brings across the light that organs are in fact needed in Jamaica. Methodology The study will involve evaluating the social, economic and ethical issues associated with organ donation and outlining the different methods that could be implemented to regulate the extraction of organs from humans. This will be spearheaded by the following research questions: 1. What is organ donation and what are the different ways in which one may try to obtain organs for sale or scientific studies? 2. What impact does the harvesting of organs have on economical developments in Jamaica? 3. What are the implications of the uses of organs in of health care? The targeted population for this study is the Jamaican society due to the many issues that have prevented the steady transplantation of organs needed. Data collection methods will be from both primary and secondary sources. Data will be collected from the works of previous researchers such as published books and Newspaper articles. The main instrument to collect data will be through an interview with 5 medical professionals. The interview questions will be surrounded on the importance of organ donation and will consist of 8 structured questions. These questions will collectively be geared towards answering the research question. The research will take place over a 5 months period in which drafts of the literature review will be handed in, compile interview questions, administer the question and then analyse the data received. The limitation to this study is that not the entire Jamaican population can be studied and therefore only selected hospitals will be focused on.

Exchange Rate Mechanisms And Regimes In India Finance Essay

Exchange Rate Mechanisms And Regimes In India Finance Essay India has gone through several stages of economic development ever since it received Independence on the 15th of August, 1947. Most notable of these stages would be the liberalisation of the economy in 1991. Until the liberalization of 1991, India was largely and intentionally isolated from the world markets, to protect its economy and to achieve self-reliance. Foreign trade was subject to import tariffs, export taxes and quantitative restrictions, while foreign direct investment (FDI) was restricted by upper-limit equity participation, restrictions on technology transfer, export obligations and government approvals.* Following a Balance of Payments crisis in the year 1991, India was literally forced to open its doors to international business, a notion previously held as most evil to the countrys growth by its leaders. It had to change its stance on several aspects of international trade, including the Exchange Rate policy adopted. But, in hindsight, we would all agree that liberalisation was a smart, if delayed, move on part of the countrys government. The economy is flourishing like never before. India is now considered a powerhouse on the global stage rather than a Third-World country. The countrys international transactions are now becoming a worrying concern for yesteryears champions like the United States and Great Britain. Since liberalization, the value of Indias international trade has become more broad-based and has risen to Rs. 63,080,109 crores in 2003-04 from Rs.1,250 crores in 1950-51. Indias major trading partners are China, the US, the UAE, the UK, Japan and the EU. The exports during April 2007 were $12.31 billion up by 16% and import were $17.68 billion with an increase of 18.06% over the previous year.* This document will give a brief overview of the Exchange Rate policy currently adopted by the countrys central banker, the Reserve Bank of India (RBI), which has made all of this possible. *Source: Wikipedia Economy of India (http://en.wikipedia.org/wiki/Economy_of_India) History of Exchange Rate Regimes in India* During the period 1950-1951 until mid-December 1973, India followed an exchange rate regime with Rupee linked to the Pound Sterling, except for the devaluations in 1966 and 1971. When the Pound Sterling floated on June 23, 1972, the Rupees link to the British units was maintained; paralleling the Pounds depreciation and effecting a de facto devaluation. On September 24, 1975, the Rupees ties to the Pound Sterling were broken. India conducted a managed float exchange regime with the Rupees effective rate placed on a controlled, floating basis and linked to a basket of currencies of Indias major trading partners. In early 1990s, the above exchange rate regime came under severe pressures from the increase in trade deficit and net invisible deficit. In the aftermath of a balance of payments crisis in 1991, stabilization was undertaken simultaneously with structural reforms over wide areas of the Indian economy. This dramatic change in context fundamentally altered the manner in which monetary policy began to be formulated, especially the forex policy adopted by the country. This shift led the Reserve Bank of India (RBI) to undertake downward adjustment of Rupee in two stages on July 1 and July 3, 1991. This adjustment was followed by the introduction of the Liberalized Exchange Rate Management System (LERMS) in March 1992 and hence the adoption of, for the first time, a dual (official as well as market determined) exchange rate in India. However, such system was characterized by an implicit tax on exports resulting from the differential in the rates of surrender to export proceeds. Subsequently, in March 1993, the LERMS was replaced by the unified exchange rate system and hence the system of market determined exchange rate was adopted. However, the RBI did not relinquish its right to intervene in the market to enable orderly control. In addition, the foreign exchange market of India was characterized by the existence of both official and black market rates with median premium. However, such black market premium steadily declined during the following decades until 1993. RBIs official position on the current Exchange Rate Policy: The objective of the exchange rate management has been to ensure that the external value of the Rupee is realistic and credible as evidenced by a sustainable current account deficit and manageable foreign exchange situation. Subject to this predominant objective, the exchange rate policy is guided by the need to reduce speculative activities, help maintain an adequate level of reserves, and develop an orderly foreign exchange market. *Source: International Economics Historical Exchange Rate Regimes of Asian Countries (http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=15) Exchange Rates In international transactions, if we export goods to other countries, our exporter in India would like to be paid in Indian Rupees whereas the foreign buyer would like to pay in his home currency. If the buyer is in United States, he will pay only in US Dollars. Thus, it becomes necessary to convert this US Dollars into Indian Rupees. The rate at which USD is converted into Indian Rupees is known as Exchange Rate. In short, exchange rate is the ratio used to convert one currency into another. Exchange rates are quoted under two methods: Direct method Indirect method. Direct Quotations While quoting the exchange rate for a currency if the unit of foreign currency is kept constant and its value is expressed in terms of variable home currency the method of quoting exchange rate is known as Direct Quotation. In this case, the unit of home currency will be varying for every unit of foreign currency. e.g., USD 1 = Rs. 48.85 GBP 1 = Rs. 75.2550 Effective from August, 6, 1993 we have changed our system of quoting exchange rates to Direct Quotations. By adopting this system, we have fallen in line with the International practice. It has become more transparent for the dealing public and it will be easier for them to follow up the movement of exchange rates. Indirect Quotations When the unit of home currency is kept constant and the unit of home currency is expressed in terms of variable units foreign currency, then this method of quoting exchange rate is called Indirect Quotation. Prior to August 1993, we were following this system for quoting exchange rates. e.g., Rs.l00/- = USD 2.2400 Rs.l00/- = GBP 1.2400 Two Way Quotes In other commercial transactions whenever we enquire the price of a commodity the seller will immediately quote his selling price. But in Foreign exchange market exchange rates are always quoted for buying and selling i.e., one rate for buying and the other rate for selling. For example, if Bank X calls for the rates from Bank Y for USD/INR Bank Y will quote: USD/INR = 42.15/16 It means that Bank Y is prepared to buy USD at Rs.42.15 and sell at 42.16. This method of quoting both buying and selling rates is known as Two Way Quotation. For all practical purposes if we treat Foreign Exchange as a commodity, the logic and application of this Two-way quotation can be understood easily, i.e., a trader will always be willing to buy a commodity at a lesser price and sell at a higher price. The principle or maxim involved in this method of quotation is: BUY LOW SELL HIGH (Under Direct Quotation) Different Transactions and Relevant Exchange Rates In the above examples, (a) is an outward remittance, which does not involve any additional labor. Bank will be recovering the rupee equivalent from the customer and remit the foreign exchange to their correspondent Bank as per their drawing arrangements with instructions to pay to the lending financial institution on behalf of their customer. If it is a remittance relating to an import bill, (b), as a banker, bank will be verifying the documents, entering them in their register, presenting the bill to the importer for payment and also check whether all the conditions stipulated by the correspondent bank are complied with. For this nature of involvement of manpower, Bank is eligible for some additional compensation. This compensation will be loaded or adjusted while quoting the exchange rate for this import transaction. In other words, the exchange rate for import transaction will be costlier to the customer when compared to the exchange rate for clean outward remittances. The differe nt rates quoted for these two transactions are TT selling and bill selling. Likewise, Bank will quote different buying rates for export bills and for other clean inward remittances. Following are the different rates, which are quoted to the customer depending upon the nature of transaction: Buying Rates: A.l. TT Buying Rate: (NATURE OF TRANSACTIONS) Clean inward remittance (TT, PO, MT, and DD) for which cover has already been provided in ADs Nostro Account abroad. Conversion of proceeds of instruments sent on collection basis. [When proceeds are credited to Nostro Account] Cancellation of outward TT, MT, PO, DD etc. Cancellation of forward sale contract. Undrawn portion of an Export Bill realised. A.2. Bill Buying Rate: (NATURE-OF TRANSACTIONS) 1. Purchase/ negotiation/ discounting of export bills and other instruments. Selling Rates: B.l. TT Selling Rate. (NATURE OF TRANSACTIONS) Outward remittance in foreign currency (TT, MT, PO, DD) Cancellation of purchase transactions, i.e., Bill purchased earlier is returned unpaid Bill purchased earlier is transferred to collection account. Inward remittance received earlier (converted into rupees) is refunded to the remitting bank. Cancellation of Forward purchase contract. Remittances relating to payment of import bills, which are directly received by the importer. Crystallisation of overdue export bills. NOTE: If the remittance is a clean remittance i.e. no documents are to be handled by the banks, TT Selling rate will be applied. B.2. Bill Selling Rate. 1. Transaction involving remittance of proceeds of import bill (except bills received directly by the. importer) NOTE: Even if the proceeds of the import bills are to be remitted in foreign Currency by way of DD, MT, TT, and PO rate to be applied will be Bill Selling rate. 2. Crystallisation of overdue import bills. Apart from the above, separate rates will be quoted for selling and buying of Travelers Cheques and Foreign currency notes. Calculation of Merchant Rates FEDAI has provided detailed guidelines for calculation of exchange rates for merchant transactions. Following factors are to be taken into account by banks before quoting rates to customers: STEP 1. Arrive at the cover rate i.e. the rate at which ADs will be covering the transaction in the market immediately the customer delivers the instrument. It may also be treated as the rate at which the AD can dispose off / acquire the Foreign Exchange in/from the market. STEP 2. Load the prescribed profit margin. EXCHANGE MARGIN: FEDAI has left the discretion of loading profit margin to the individual banks. It is now purely at the discretion of the individual Bankers to load the appropriate exchange margin and improve the exchange rate depending upon the volume and nature of the transaction. STEP 3. Rounding off the transaction to the nearest 4 decimals, i.e., .0025/50/75/00. EXAMPLE: Exporter has submitted a bill for USD 100,000. Inter-bank exchange rate 48.02/03 Profit margin 1.5 paise STEP 1: Select the appropriate base rate at which the bank can dispose off the USD against Indian Rupee in the market. In this case, Bank may be able to dispose off USD 100000 at Rs. 48.02 in the Inter Bank market at the market-buying rate. STEP 2: Load the prescribed profit margin: Base rate Rs.48.02 Deduct the profit margin: Rs.48.0200 0.0150 = Rs.48.0050 Since Bank will be paying Indian Rupees to exporter customer, Bank will be deducting their profit margin from the rupee proceeds. STEP 3: Round off to the nearest 4 decimals. In the above transaction, Bank will be quoting the rate as 48.0050 to the customer. Cross Rates / Chain Rule If a Corporate wants to purchase Euro (EUR) since this currency is not normally quoted in India, AD will procure US Dollars from Inter-bank market against Rupees and will contact any of the overseas market to get Euro by disposing the US Dollars. E.g., A customer wants to retire an import bill for EUR 50,000 and the Inter Bank rate for USD/INR is at 39.02/03 and the overseas market rate for EUR/USD is 0.8920/30. In order to arrive at the EUR/INR exchange rate Bank will be applying following Chain Rule method. It should be noted that the market quote for EUR/USD is expressed under Indirect quotation i.e., one unit of Euro will be equivalent to how much USD. First leg of the transaction is, Authorised Dealer procures USD against Indian Rupees from inter-bank market: USD $1 = Rs.39.03 i.e. to procure US$ 1, AD will pay Rs.39.03 in the Interbank. With this USD, AD will go to London market and procure EUR paying USD 0.8930 for one EUR. By applying Chain Rule : 1 EUR = USD 0.8930 1 USD = INR 48.03 Then 1 EUR will be equivalent to 0.8930*39.03 = INK 39.8907 Rounding off to 4 decimals = Rs.39.8925 This method of arriving at the value of other currencies through US Dollar or any other third currency is known as Cross Rate or Chain Rule. Card Rates Dealing room of all banks as soon as open for that days business, works out the exchange rate for all the major currencies and for all types of transactions. This rate will be communicated to all branches of the bank. This rate will be the indicative rates and this rate will be applicable only for transaction up to the prescribed level i.e., smaller value transactions. Spot Rates Forward Rates We have learnt that exchange rate is the price at which one currency can be bought or sold for another currency. The date on which currencies are exchanged can be any date from the date starting from the date of transaction to any future dates. Transactions may be either Spot or forward depending upon the delivery of the Foreign Exchange. Under Spot, we have CASH-SPOT, TOM-SPOT. If the exchange of currencies takes place on the same day of transaction, it is known as CASH DEAL. If the exchange of currencies takes place on the next working day, i.e. tomorrow, it is known as TOM-DEAL. If the exchange of currencies takes place on the second working day after the date of transaction it is known as SPOT DEAL. Normally exchange rates are quoted on spot basis i.e., the settlement will take place on the second working day after the date of transaction. Wherever foreign exchange will be delivered after SPOT date, it is known as Forward transactions. Going back to the above Import transaction, if the Importer gets the information that his shipment will be reaching India only after 3 months it is possible that due to exchange fluctuations he may have to pay more in Rupee terms. If he feels that the exchange rate on the third month, at the time of retirement of the import bill, will not be favorable to him, he may like to fix an assured rate for his future transaction. This type of fixing the exchange rate for a future transaction, at the desired time earlier to the date of actual transaction is known as Forward contracts. Premium/Discount on Direct Quotations If we are familiar with commodity or share market it would be known that spot rate, forward rates are different, and they need not be the same. This is so because the anticipated demand and supply and the cost situations at the forward date may not necessarily be identical with that of the existing at present. The commodity/share could be quoted at a higher (premium) or lower (discount) rate for future deliveries. We shall illustrate this with an example: Spot interbank rate of USD 1 = Rs.39.25 3 months forward USD 1 = Rs.39.95 If one has to buy dollar three months forward against Rupees, he has to pay 70 paise more for the same dollar, i.e., 3 months dollar will be costlier by 70 paise compared to spot rate. Therefore US Dollar is said to be at premium in forwards vis-a-vis rupee. In direct quotations premium is always added to both the buying and selling spot rates. In another situation: Spot interbank rate of USD 1 = JPY 108.50 3 months forward USD 1 = JPY 106.50 From the above illustration it will be seen that the USD/JPY for 3 months forward is available at a cheaper rate as compared to spot. In other words USD is cheaper by 2 JPY forward compared to spot. i.e., USD is at discount in forwards vis-a-vis JPY direct quotations. Discount factor is always deducted from the buying and selling spot rate. From the above it is now clear that if we compare spot and forward rates we are able to arrive at the following three possibilities: a. If the spot rate and the forward rate are the same they are at par. b. In direct quotations if forward rate is more than the spot rate the base currency is said to be at premium. c. In direct quotations if forward rate is less than the spot rate the base currency is said to be at discount. Quoting Forward Rates Forward differentials are always quoted in two figures like, 15/16 and 15/14. It will be either at ascending or descending order. If the first figure is less than the second figure {in ascending order} then the base currency is said to be at premium. In direct quotations premium is always added to both the buying and selling rates. If it is a buying transaction for the bank, the quoting bank will add lesser of the two premium figures so as to give minimum rupees. Likewise if it is a selling transaction, the quoting bank, will add higher of the two premium figures to take the maximum amount in rupees for selling a foreign currency. EXAMPLE Interbank market rates: Spot USD: Rs.39.2025/2100 1 month forward 15/16 a) We have an export bill transaction. Since the forward differentials are in ascending order the base currency, USD is at premium. Hence, it should be added with the spot rate to arrive at the forward rate. Out of the two premium figures (15/16) since Bank will be giving Indian rupees, they will give minimum amount in rupees. Step 1: Spot buying rate USD 1 = Rs.39.2025 Step 2: To arrive at the forward rate: Since the base currency is at premium and Bank has to give rupees, add the minimum premium, i.e., add 15 paise to the spot rate. Spot buying rate USD 1 = Rs. 39.2025 Add premium = Rs. 00.1600 Rs. 39.3625 Hence, the forward rate for this export transaction will be Rs.39.3625. b) In an import transaction, while recovering rupees from the importer customer, for one-month forward rate, Bank will add the maximum premium i.e. 16 paise and the forward rate for Banks selling transaction would be: Spot selling rate USD 1 = Rs. 39.2100 Add premium = Rs. 00.1600 Forward rate for selling = Rs.39.3700 If the forward differentials are on the descending order i.e., 25/24, the base currency is said to be at discount. In direct quotations, if the base currency is at a discount, discount factor is always deducted from the spot rate. When two discount figures are quoted if it is a buying transaction (export bills) in which bank will be giving rupees, they will be deducting higher of the two figures and give minimum rupees. EXAMPLE: Interbank market Spot USD 1 = Rs.39.2725/00 1 month forward 25/24 (paise) To arrive at the 1-month forward rates: Buying Selling (Export bill) (Import bill) Inter-bank Spot 39.2725 39.2800 Deduct the discount 0.2500 0.2400 1 month forward rate 39.0225 39.0400 From the above example, in direct quotations, in selling transactions, lesser amount of discount is deducted to take maximum rupees for every dollar. RBI Regulations on Forward Contracts A person resident in India may enter into a forward contract with an authorized dealer to hedge an exposure to exchange risk subject to production of satisfactory documentary evidence about the genuineness of the underlying exposure. This has been relaxed on 1.12.2001 -vide RBI guidelines EC/CO/FMD/453/18.07.01 /2001-02 wherein Reserve Bank permits Authorized Dealers to book FWD contracts based on a declaration of an exposure subject to: FWD contracts booked in aggregate, should not exceed 50%of the average of previous 3 financial years actual import/export turnover subject to a cap of USD 100 Mn or equivalent. Declaration to AD about amount booked with other Authorised Dealers Undertaking to produce supporting documentary evidence before maturity of the FWD contract. Substitution of contracts for hedging trade transactions may be permitted on satisfactory reasons Contracts involving rupee as one of the currencies, once cancelled shall not be re-booked although they can be rolled over at ongoing rates on or before maturity. This restriction shall not apply to contracts covering export transactions, which may be cancelled, rebooked or rolled over at on-going rates.

Oil and Saudi Arabia Essay -- Essays Papers Oil Saudi Arabia Papers

Exposing the Saudi Arabian Royal Family, U.S. foreign policy, and the poverty currently occurring within Saudi Arabia Preface The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm. Saudi Arabia, the leader of OPEC (Organization of Petroleum Exporting Companies), maintains a powerful position in negotiations with the U.S. and other countries. Its vast supply of oil directly effects per barrel pricing and is a unique bargaining tool in international politics. But Saudi Arabia is no ordinary country in today's world. Its borders are governed by a royal family of nearly 30,000 individuals, all of which share most of the wealth and almost all of the power. Its people, with foreign exceptions, are wholly Islamic and many practice the faith with a frightening sense of devotion. And despite the immense revenue generated by its oil reserves, part of its population still lives in absolute poverty. Although recently it has seen immense change, it is still a country fair behind the progressive world. This report draws from many publications written over the last twenty years exposing the unique situation in Saudi Arabia, while also utilizing recent headl... ... September 2003 (31 May 2004). ?Oil jumps back near $42,? (31 May 2004). ?Plots and bombs,? The Economist, May 1 2004: 47. ?Still at its mercy,? The Economist, May 22 2004: 10 ?The limits of reform,? The Economist, Mar 27 2004: 47. ?US Challenges and Choices Saudi Arabia: A View from the Inside,? The Atlantic Council of the United States, The Middle East Institute, The Middle East Policy Council, and The Stanley Foundation, (May 31, 2004). ?What if The Economist, May 29 2004: 69. William Powell, Saudi Arabia and its Royal Family, (New Jersey: Lyle Stuart Inc., 1982). World Bank Report 2003, ?Saudi Arabia,? Oil and Saudi Arabia Essay -- Essays Papers Oil Saudi Arabia Papers Exposing the Saudi Arabian Royal Family, U.S. foreign policy, and the poverty currently occurring within Saudi Arabia Preface The current world dependence on oil leaves much to be said about the impact of Saudi Arabia and the Middle East on foreign policy and international politics. Presently the world's largest consumer of oil, the U.S. depends on Saudi Arabia and much of the Middle East for the energy to run its businesses, its homes, and most importantly, its automobiles. In the past few months U.S. consumers have felt the pressures of increasing gasoline prices as they struggle to commute and live their daily lives. This leaves the U.S. with important decisions to be made on behalf of its citizens and its position in the international realm. Saudi Arabia, the leader of OPEC (Organization of Petroleum Exporting Companies), maintains a powerful position in negotiations with the U.S. and other countries. Its vast supply of oil directly effects per barrel pricing and is a unique bargaining tool in international politics. But Saudi Arabia is no ordinary country in today's world. Its borders are governed by a royal family of nearly 30,000 individuals, all of which share most of the wealth and almost all of the power. Its people, with foreign exceptions, are wholly Islamic and many practice the faith with a frightening sense of devotion. And despite the immense revenue generated by its oil reserves, part of its population still lives in absolute poverty. Although recently it has seen immense change, it is still a country fair behind the progressive world. This report draws from many publications written over the last twenty years exposing the unique situation in Saudi Arabia, while also utilizing recent headl... ... September 2003 (31 May 2004). ?Oil jumps back near $42,? (31 May 2004). ?Plots and bombs,? The Economist, May 1 2004: 47. ?Still at its mercy,? The Economist, May 22 2004: 10 ?The limits of reform,? The Economist, Mar 27 2004: 47. ?US Challenges and Choices Saudi Arabia: A View from the Inside,? The Atlantic Council of the United States, The Middle East Institute, The Middle East Policy Council, and The Stanley Foundation, (May 31, 2004). ?What if The Economist, May 29 2004: 69. William Powell, Saudi Arabia and its Royal Family, (New Jersey: Lyle Stuart Inc., 1982). World Bank Report 2003, ?Saudi Arabia,?

Kung Bushman Essay -- essays research papers

The !Kung Bushman Most contemporary foraging groups, such as the !Kung and other Bushman tribes, are viewed as a â€Å"primitive† people. Some have even gone as far to say that they are â€Å"the last representatives of the stone age.† While it is true that these people have the most similar culture to what we believe primitive persons to have had, the analogies they can provide us with the people of the past are very inaccurate. These comparisons are so unrivaled due to factors such as time and the wrong sense of view many people have on them. Another reason that we cannot compare the !Kung of today to the people of the past is because they are now advancing in society with the use of technology. I believe that the !Kung tribe is not comparable to the early people of their culture and that they are just the same as us minus our technology, which in no way makes them ‘primitive’ people. First of all, every culture varies in traditions over time. According to Shostak, it is t rue that the !Kung people still have traditions that have been passed down for hundreds of generations such as their poison arrows, their trance ritual, their wide knowledge of over five hundred species of plants and animals—knowing which are edible, harmful, cosmetic, and medical. Who are we to say that these traditions have not been altered in the past ten thousand years? Howell declares that the !Kung were a very studied group including their language, culture, and economic organization. Although they have been extensively studied, Howell also proclaims, â€Å"It is surely illegitimate to use them as though they are the prototypical hunter-gatherers, knowledge of whom tells us all we need to know in order to apply the ethnographic analogy to models of prehistoric life.† Wild, maniac, unsophisticated, uneducated, vulgar†¦these are all words that come to mind when I think of prehistoric or primitive. Obviously the !Kung tribe have grown with the rest of society. How are we to say what the differences of prehistoric life was to the modern day !Kung tribes? Human error would play a huge role in our â€Å"assumptions† of the !Kung. For example, we might turn around to be just as wrong as the article of the Nacirema. Obviously, there is already a misconception about the bushman. For example, in McNeil’s essay, he comments on how a woman was speaking to a bushman and demanded to see one. When he explained ... ...† The bushman are pretending to be people they are not, giving the tourists what they want. This also gives tourists the wrong impression and significantly aids in the ignorance of the !Kung. This would be devastating to their culture. Culture, after all, is associated with the changes a society goes through over time. If these ‘prisons’ were to be set up, the culture would be forced and therefore in no way a comparison to early persons. Obviously, the !Kung have a very unique culture compared to how we live our lives. They in no way, however, represent what the culture of early persons to have. They have their own culture, unique to their society, and like ours†¦ever changing. What most people consider â€Å"primitive† is an ethnocentric remark to the difference of their culture to ours. The !Kung just have their very own technology, which is very efficient seeing that they survived this long. Due to time, ignorance, and the bushman’s leanin g towards our methods, they in no way can be compared to early people by means of their culture. The !Kung Bushmen are living their own lives now, in the present, therefore they can be in no way considered ‘people of the past.’ Word Count: 1024

Quality Management and Customer Satisfaction

Wal-Mart’s Strategic Quality Management and Customer Satisfaction One organization that has become successful in many aspects of satisfaction and quality is Wal-Mart. This organization started out providing basic products to customers during certain hours of the day and evening, and then expanded the become Wal-Mart Supercenters by also providing groceries and becoming a 24-hour establishment. By making these changes in their organization, Wal-Mart has provided superior satisfaction to both its internal and external customers. To better understand Wal-Mart’s level of quality and customer satisfaction, Learning Team C has conducted a SWOT analysis of the organization, developed a vision and mission statement, and created strategic plans and objectives for the organization. SWOT Analysis Strengths Wal-Mart has a great deal of strengths which is apparent due to their incredible success throughout the years. Wal-Mart has mastered the process of production, movement of goods, warehousing of goods, ensuring goods arrives on time at the right place, and for a cheap price. Wal-Mart’s foundation was built upon understanding, identifying, and knowing exactly what customers want from their retailer and having this information has contributed to their tremendous success. Wal-Mart is a powerful retail brand which has the reputation for providing a wide range of products all in one store, value for money, and convenience. Weakness Wal-Mart has a weakness that shapes not only their image, but the livelihood of people in many communities. In many places when a new Wal-Mart comes to their community most small retailers are forced out of business due to the retail giant. There are many moral customers, who are concerned with the interests of the smaller retailers. This concern quickly turns to anger when they see Wal-Mart’s monopolizing capability that has gained strength in the past few decades. Because of these issues there are many people who refuse to shop at a Wal-Mart; they become anti-Wal-Mart shoppers. Unfortunately, this weakness according to some has taken a toll on Wal-Mart’s stock prices as well. Also, in the past several years Wal-Mart has had to fight several high law suits which have also affected their image in the general public’s eye. Opportunities It would be ideal for Wal-Mart to take advantages of the opportunities to improve in the behaviors that they have been heavily criticized in by the public. Wal-Mart has the opportunity to use its resources to help our world improve its environment. The environmental programs that Wal-Mart supports have the potential to receive tremendous results because it has such a large image. In their overseas locations Wal-Mart has been worried with child labor laws, so they have been paying very close attention to its supplier’s labor practices by enforcing stricter policies. Being the largest employer in the United States, Wal-Mart is taking advantage of the opportunity by providing its employees with a new health care plan that will increase their benefits. If Wal-Mart makes a continued effort to resolve these concerns they will ultimately increase their market share and improve their public image. Threats Dollar General discount stores are growing rapidly in the United States. Unfortunately for Wal-Mart, these stores have the ability to open in smaller communities where there would not be enough business to support Wal-Mart’s sales quota. Dollar Generals deep discount threatens and competes greatly with Wal-Mart’s claims of having the lowest price. Wal-Mart has to continue to work hard to compete in times of ambiguity. Many of Wal-Mart’s customers are slightly affected by the economy therefore it has an advantage being it offers low prices in times of recession that appeal to its customers. However, the attempts made by the government to stimulate the economy are not directly felt by Wal-Mart’s customers. This increasingly threats Wal-Mart’s sales and vitality. Vision and Mission Statement Wal-Mart bases it operations on integrity and customer satisfaction. In order to uphold these two main objectives Wal-Mart has developed a vision and mission statement along with guiding principles that incorporate quality principles. Wal-Mart’s mission statement is to maintain the highest quality in products and customer service, while treating its employees like family. In order to incorporate values and principles within the organization, Wal-Mart strives to always maintain a high level of loyalty to both its customers and its employees. To stay loyal to both customers and employees, Wal-Mart uses core values such as integrity, loyalty, top service, equality, and honesty. Wal-Mart’s vision is to uphold these values and principles to keep a large flow of customers into their stores throughout the country. Wal-Mart believes that in order to keep satisfied customers and employees, the organization has to present high quality products and low prices, and show both customer and employee appreciation at all times. To ensure this vision stays intact, Wal-Mart has open suggestions boards open to stay informed on what its customers and employees would like to see within their stores. Wal-Mart believes that the public and their employee family have a right to have the best products and services to help them live their daily lives. Strategic Plan and Strategic Objectives With Wal-Mart being one of the leading retail industries around, it’s very important for their customer service to be top notch, to keep the customers coming back and keep them satisfied. A goal for Wal-Mart is to expand very rapidly and to expand everywhere outside the United States. That’s why Wal-Mart has been able to stay at the forefront during these economic times. Wal-Mart has become a monopoly due to the products they sell and the wide array of choice they offer for the customer. Not only do they sell furniture, clothes, electronics, etc. , they are also now expanding to a grocery store, they also house other businesses. Every Wal-Mart is different, some house salons, eyeglass stores, other eateries. Wal-Mart strives to continually have quality goods but sell them at lower prices than any other stores; they do this by buying products in bulk that way it’s possible to sell to the consumer at the lower prices. Wal-Mart continually strives to advance farther than its competitors by keeping up with the latest technology, but keeping them at prices the public can afford and is willing to pay. The only thing Wal-Mart needs to keep up on is keeping customer service at the top of its list of things to improve upon. Besides the low prices, and the selection of goods, quality customer service is one of the factors that will keep the consumers coming back. Wal-Mart uses different innovated tools in order to keep their customer satisfaction high. One of their main tools is keeping their prices low. This is accomplished by using a system that is set in place by Cisco. This system is based on questions, as stated by David Flanagin (n. d. ): â€Å"Will it help us lower prices,† executives ask. â€Å"How will it improve the customer's experience? So the selection of a communications infrastructure from Cisco was part of a Wal-Mart plan to make things better for customers. â€Å"At Wal-Mart, we don't implement technology for its own sake,† â€Å"It has to have a payback that helps the customer. † A friendly employee is another tool Wal-Mart uses to keep their customers satisfied. This is accomplished through keeping their employees satisfied. Having available stock and other resour ces on hand allows their employees to have what they require at their disposal and this makes both the employees happy and also their customers. Wal-Mart uses tools such as having every product available from clothing, electronics, pharmacy, and groceries. They are open 24 hours a day which is a great tool for everyone. Wal-Mart can measure their success in maintaining customer satisfaction through the on-line network that Cisco provides for them. They are now the largest retailer with more than 2400 stores and 100 distribution centers. Inventory management is a very successful tool used that help keep prices low. With global markets and retailers the internet has been an important part of keeping customers and allowing for replenishment of products on a consistent and at a low cost. References Flanagin, David. N.D. Cisco – Retail Customer Success Stories, The Wal-Mart Story Using Internet Technology to Support Everyday Low Prices and Increased Customer Satisfaction. Retrieved from www.cisco.com. Retrieved on December 5, 2010. Cramer, J. J.  (2005).  Wakeup Walmart.com.  United Food and Commercial Workers International Union.  Retrieved from http://www.wakeupwalmart.com/news/20050817-rmcom.html. Marketing Teacher Ltd..  (2010).  Marketing Teacher.com.  Retrieved from http://www.marketingteacher.com/swot/walmart-swot.html.