Tuesday, May 26, 2020

Customer Expectation Through Service Excellence - 1758 Words

Party Rental Ltd began as a secondary line of business for Oprandy’s Liquor store in Englewood, New Jersey. Oprandy’s provided an additional service to customers who were picking up wine and beer for their house parties by renting tables, chairs, and glassware. In April 1972 it was expanded into a larger scale rental business with more appropriate items. A year later they moved into a 10,000 square foot facility. In august 2006, it was relocated to a 350,000 sq. foot corporate headquarters in Teterboro, NJ where they currently reside. However, there also are smaller subsidies in Pennsylvania, the Hamptons and Maryland. Although, there is a written mission, core values and philosophy, they are only posted and pop up on our computers daily.†¦show more content†¦Organizational Structure Upper Management consists of one CEO Owner, one COO/President (Son of Owner), and VP/CFO. Management consist of VP of Human Resource, VP of Operations, Department Directors Managers, Supervisors of different areas (roles responsibility unclear) When reading about Party Rental Ltd there is a sense that the old â€Å"mom and pop† community store has grown in size but there is no formal business structure or philosophy reflecting the change. One might believe change was just adopted words only and never internalized and operationalized. It is interesting, because the dress code use to be business causal but was changed to a more old community affect of â€Å"jean and T shirts†. What occurs at Party Rental annually is a break even financial status. Ironically, everyone seems ok with it. Prices are raised annually and they terminate and hire seasonally. An excessive number of clients are not charged for half or all of an order due to inadequate service, such as incorrect items delivered, inaccurate delivery times, and mix-ups in dispatch and truck loading for delivery. Language barriers in the warehouse accounts for misinformation and poor customer service. In addition, supervisors employed for specific areas overlap resulting in indecision and there is confusion. Employees may require supervision but this is ineffective. Processes for customer service to establish an order for

Friday, May 15, 2020

Analysis For Malaysia - Free Essay Example

Sample details Pages: 18 Words: 5259 Downloads: 6 Date added: 2017/06/26 Category Statistics Essay Did you like this example? EXCHANGE RATE MISALIGNMENT AND CAPITAL INFLOWS: AN ENDOGENOUS THRESHOLD ANALYSIS FOR MALAYSIA ABSTRACT This study presents an attempt to investigate the impact of exchange rate misalignment on capital inflows in Malaysia. Specifically, a precise threshold value is estimated to examine when exchange rate misalignment suppresses capital inflows. To pursue these objectives, this study relies on the endogenous threshold analysis as of Hansen (1996, 2000). Don’t waste time! Our writers will create an original "Analysis For Malaysia" essay for you Create order Results suggest that misalignment in terms of currency overvaluation, has a negative and significant effect when overvaluation is more than 15 percent. This estimate is consistent and robust despite the changes in the choice of explanatory variables. INTRODUCTION Foreign direct investment (FDI) has served as an important engine of growth via skills and technology transfer, creation of employment opportunities and expanding the capital stock in Malaysia. Since the 1997 Asian financial crisis, Malaysia is no longer the top 10 host for FDI. In fact, the rate of growth of FDI has dramatically decrease compared to that of the early 1990s. This is partly due to reverse investment (Mat Zin, 1999) and declining dependence on FDI to finance growth. However, this may also indicates the declining competitiveness of Malaysia in attracting FDI which warrants empirical research since it would be vital to investigate which factors that contributed to the deterioration of competitiveness. Since early 1980s, real exchange rate misalignment has become a standard concept in international macroeconomic theory and policy (Razin Collins, 1997). Hence, this study focuses on exchange rate misalignment as an indicator of capital inflow competitiveness in the case of Malaysia. Malaysia provides an interesting case as it is one of the largest recipients of FDI amongst its ASEAN counterparts. Another advantage of undertaking a single country study is the ability to delineate the assumption that countries are similar in terms of social, cultural, economic and political background (Sun et al., 2002). Therefore, only relevant economic determinants are accounted for to suit the Malaysian environment. The objective of this paper is to investigate the empirical relationship between capital inflows and exchange rate misalignment. Whilst existing literature focuses on the role of exchange rate, this study takes a step further to examine the impact of exchange rate misalignment on capital inflows. Specifically, we estimate a threshold value at which misalignment begins to significantly affect capital inflows. To the best of our knowledge, no published study has attempted to estimate a threshold value for exchange rate misalignment in Malaysia. Hence, this study intends to fill this gap. Based on the endogenous autoregressive threshold (TAR) model developed by Hansen (2000), we split the sample into high and low misalignment regimes. Results suggest that exchange rate misalignment due to overvaluation is detrimental to the influx of capital inflows. The next section provides a brief overview of FDI in Malaysia followed by a brief explication of the theoretical model and review of liter ature. The fourth section spells out the method pertaining to the objective. The penultimate section provides results and discussion and the final section concludes. CAPITAL INFLOWS IN MALAYSIA: RECENT TRENDS AND INCENTIVES The essence of export oriented-growth nexus somewhat depends on the inflow of foreign capital into the country. In the past, foreign direct investment has been the one of the major conduit for technology transfer, job creation and export-led growth to this country. To pursue this line of interest, the Malaysian government has designed various policies spanning the gamut of industrial specific incentives, taxation, and intellectual property protection to infrastructure support. The company tax rate for example has been reduced from 33 percent in 1987 to 27 percent in 2007 and 26 percent in 2008. Other tax incentives such as the investment tax allowance, tax relief for companies with pioneer status or high technology industries has continued until today with more industries be given the relevant status to reap the benefits of the incentives. Most recently, the government has liberalized bumiputera equity requirements for 27 sectors to further boost competitiveness. With reference to previous information, there was a surge in foreign direct investment (FDI) into Malaysia in the late 1980s and this trend continued until the onset of the 1997 Asian financial crisis. Another acute slump in the influx of FDI occured in 2001 when the economy was in a slight recession but picked up again in 2002 thereafter. With the recent burgeoning world recession following the American sub-mortgage crisis, it is expected that FDI will contract again (IMF, 2009). To capture a more vivid impact of misalignment on capital inflows, this study employs quarterly data from Bank Negara Malaysia (BNM the central bank of Malaysia) instead of the UNCTAD data which are annual. Foreign capital inflows or investment inflows comprises three items: (i) equity investment, (ii) loans and (iii) real estate. Investment consists of equity investment in Malaysia by non-residents, loans obtained from non-residents and purchase of real estate in Malaysia by non-residents but excludes retained earnings (Source: Bank Negara Malaysia, Glossary, Monthly Bulletin Statistics January, 2009, p. 186-187). This study resorts to a specific measure of FDI, that is, foreign investment inflows. Data starts from 1991:Q1-2008:Q3, partly dictated by availability. THEORY AND REVIEW OF LITERATURE In this study, we rely on the portfolio balance approach to model the determinants of foreign capital inflows. This model has been successfully tested by Goh (2005) for Malaysia. Branson (1968) postulates that the proportion of foreign assets (Kf) in a given stock of wealth is a function of the domestic and foreign interest rates (i and i*), the measure of exchange rate expectation or risk (e) and the stock of wealth (w) expressed as: (1)Darby et al. (1999), augment this concept of exchange rate risk (e) into exchange rate volatility and exchange rate misalignment. Since this study focuses on the role of exchange rate misalignment, we substitute e with misalignment. Expressing the above equation at level yields, (2)Focusing on Z, the literature suggests a number of variables that determines capital flows. The enigmatic relationship between FDI and exchange rate nexus has been widely examined and most of the discussions root back to the work of Kohlhagen (1977), Cushman (1985), Froot and Stein (1991), Goldberg (1993) and Darby et al. (1999). The effect of exchange rate is less straightforward (Benassy-Quere et al., 2001). The mechanisms that exchange rate affects capital inflows can also be viewed via the wealth effect channel and the relative production cost channel (Xing, 2006). A devaluation of the currency of the host country makes local cost of production lower in terms of foreign currency, hence leading to higher returns from export-oriented industries. As for the wealth effect, a devaluation makes local asset cheaper which motivates investors to acquire more. Kohlhagen (1977) static model postulates that following depreciation in host countries, MNEs will increase their production capacity. In a two period dynamic model, Cushman (1985) suggests that adjusted expected real depreciation lowers the production cost which leads to increase in FDI flows. Similarly, Goldberg (1993) illustrates how sectoral profitability, location effects, and portfolio and wealth effects are important factors that determine investment an d their links with exchange rates. In her theoretical model, the direction of investment effects triggered by exchange rate movements is ambiguous, therefore, warrants empirical research. On contrary, in an imperfect information framework, Froot and Stein (1991) show that appreciation induces wealth effect of foreign investors, thus encouraging foreign investors to acquire more local assets. Empirically, there is quite a consensus that a depreciation of the exchange rate in the host country leads to a reduction of the FDI (Klein and Rosengren, 1994; Dewenter, 1995). There is however, a dearth of studies that empirically examine the relationship between FDI and exchange rate misalignment. Empirical attempts include Benassy-Quere et al. (2001) who advocate the benefits of depreciation may be offset by excessive volatility of the exchange rate. Blonigen (1997) illustrates how currency depreciation induces foreign firm to acquire firm-specific assets when markets are segmented. Hasnat (1999) study the impact of misalignment on FDI for five developed nations on annual data ranging from 1976-1995. All of these studies use misalignment as a control variable or a counterpart for exchange rate variability and is measured by a deviation from the purchasing power parity (PPP) values. Furthermore, most of these studies are based on the experiences of industrialized economies using panel data analysis framework. In short, a prolonged misalignment may affect long term business decisions as it affects costs. If the exchange rate is overvalued relative to the e stimated equilibrium level, investors may acquire more domestic assets for future capital gains in host country currency terms (Barrell and Pain, 1996). On the other hand, persistent overvaluation may reduce cost competitiveness of production in the host country, especially for export oriented products. Other traditional determinants of FDI can be demarcated into at least two categories micro and macro determinants. The list of micro-determinants spans from market size, growth, labour costs, host government policies, tariffs to trade barriers. The macro-determinants include market size (Chakrabarti, 2001; Farrell et al., 2004; Kravis and Lipsey; 1992), openness (Edwards, 1990; Gastanaga et al. 1998; Hausmann and Fernandez-Arias, 2000; Aseidu, 2002), rate of inflation (Bajo-Rubia and Sosvilla-Rivero, 1994; Urata and Kawai, 2000), government budget, taxes (Gastanaga et al., 1998; Wei, 2000) and infrastructure (Wheeler and Mody, 1992; Urata and Kawai, 2000). Financial deepening is also another catalyst for FDI (Borensztein et al., 1998). Liquid liability, private credit and M3 serve as proxies. Increase in money supply fuels inflation which increases the cost of production in the host country rendering a negative relationship. However, increments in money supply supported by growth or higher productivity indicate increase in future purchasing power which can benefit market-seeking FDI. Finally, the degree of misalignment is computed based on the difference between the actual and the hypothetical equilibrium exchange rate. Accordingly, the estimation of the hypothetical equilibrium exchange rate relies on the theory advocated by Edwards (1994). This theory postulates that the real exchange rate is a function of several fundamental variables which includes the Balassa-Samuelson effect, trade openness, net foreign assets and government spending. Details are provided in Sidek and Yusoff (2009). METHODOLOGY AND DATA The question of when does misalignment begin to significantly affect capital inflows necessitate the existence of a non-linear relationship between these two variables. Thus, if such non-linear relationship exists, then it is possible to estimate an inflexion point, or a threshold value, at which the sign of misalignment may change or become significant. In the non-linear time series modelling, the threshold autoregressive model (TAR) is more popular since it offers a relatively simple specification, estimation and interpretation compared to other non-linear models. The origins of TAR models roots back to Tong (1980) where the main idea is to approximate a general non-linear autoregressive structure by a threshold autoregession with a small number of regimes. Hansen (1996, 2000) derives the asymptotic distribution of the ordinary least squares (OLS) estimates of the endogeneous threshold parameters which is used in this study. This section explains how equation (2) is estimated to incorporate threshold effect. According to Hansen (2000), threshold estimation is the act of splitting the sample into two regimes when the threshold value is unknown. One necessary precondition is that the threshold variable must be a continuous variable. In this study, the threshold estimation is carried out by splitting the sample into high misalignment and low misalignment regime. Since misalignment is a continuous variable, TAR model would be appropriate to engender the threshold value. Formally, the two-regime threshold regression model takes the form: where is the threshold variable which is used to split the sample into two regimes, is the threshold value which is unknown and must be estimated, denotes the dependent variable (capital inflow), represents a vector of explanatory variables and is the error term assumed to be white noise and i.i.d. Note that if the threshold value is greater than the threshold variable, equation (3) is estimated and vice versa. This allows the regression parameters to change with respect to . In order to write equations (3) and (4) in a single equation, a dummy variable is used which is defined as where {.} is the indicator function, with d=1 when and d = 0, if otherwise; and set , such that (3) and where and . Equation (5) allows all the regression parameters , and to be estimated and switch between the two regimes. The least square (LS) technique is used to estimate through minimization of the sum of squared errors function. To implement this, the model is expressed in matrix notation, hence, equa tion (5) is expressed as: (6) Define, (7) as the sum of squared error function. By definition the least squares estimators which is also the MLE when with i.i.d. , jointly minimize equation (7). This minimization process requires to be restricted to a bounded set . The concentrated sum of squared errors function is written as: (8) where is the value that minimizes . As takes values that is less than n, is uniquely described as: with (9) Focusing on the objective of this section, the first step is to examine whether there exist a threshold effect in the model. This requires the examination between the linear model vis--vis the two-regime model, equation (5). The null hypothesis of no threshold effect is tested against an alternative hypothesis where threshold effect is present. Since TAR models have a non-standard distribution, Hansen (1997, 2000) develops a standard heteroscedasticity-consistent Langrange Multiplier (LM) bootstrap method to calculate the asymptotic critical value and the p-value. The second step is to examine whether the derived threshold value is statistically significant. This is done by differencing the confidence interval region based on the likelihood ratio statistic . Based on Hansen (2000), let C represent the desired asymptotic confidence interval (in this study at 95%) and be the C-level critical value and set . Assuming homoscedasticity, as , therefore, is the asymptotic C-level confidence region for . If the homoscedasticity condition is not fulfilled, then a scale likelihood ratio statistics of the residual sum of squared errors is defined as: (10)and the adjusted confidence region becomes such that is robust whether or not the heteroscedasticity condition holds. Simulation is set at 1000 replications as suggested by Hansen (2000). Also, is not normally distributed hence, the valid asymptotic confidence intervals of the estimated threshold values in the no-rejection areas defined as , where is a given asymptotic level; and the no- rejection region of the confidence interval is . If , than the null hypothesis of cannot be rejected. In addition, to examine the possibility of a second threshold value, the same exercise is repeated. Specifically, the empirical model to be tested which is based on equation (2) is defined as follows: (11) where K is capital inflows, Mis, R and M3 denote exchange rate misalignment, interest differentials and financial deepening, and Z represents the other control variables. Table 1 summarizes the description of data, measurement and sources used in this study. Table 1: Determinants of Capital Inflows (1991Q1-2008Q3) Variable Description Measurement Source I Foreign investment Total foreign investment inflow as a percentage of GDP BNM M3 Money supply M2 as a percentage of GDP IFS D Government deficit The difference between revenue and expenditure as a percentage of GDP BNM R Interest differential The difference between Malaysia and US 3-month T-Bill rates IFS T Taxation Government corporate tax revenue as a percentage of GDP BNM LL Liquid Liability Log International liquidity: banking institution liability, line. 7b.d IFS INFRA Infrastructure Log of spending on infrastructure as a percentage of GDP BNM IFS: International Financial Statistics, IMF, UNCTAD: United Nations Conference on Trade and Development, BNM: Bank Negara Malaysia Monthly Statistical BulletinDOS: Department of Statistics, Malaysia (various issues). RESULTS AND DISCUSSION Prior to time series analysis, we test for unit roots in order to avoid spurious regression. Three versions of unit root testing, namely the ADF, PP and KPSS tests are employed to examine whether the variables are stationary on level or otherwise. Table 3 indicates that the order of integration are mixed for a majority of variables. However, this study proceeds to examine the threshold effect by including lagged variables for I(1) variables in the OLS estimation. Moreover, equation (2) derived from the theory requires estimations at level. Table 2: Unit root test ADF PP KPSS Order of Integration Level 1st Diff Level 1st Diff Level 1st Diff I -3.7029* -7.9812* -3.5286* 14.00208 0.9008* 0.2305 I(0)/I(1) M3 -1.2741 -10.0951* -1.3334 -10.4699* 1.0229* 0.3588*** I(1) D -1.6297 -19.7087* -8.8219* -27.3774* 0.3649* 0.0894 I(0)/I(1) R -4.5405* -3.8179** -2.6509 -7.0649* 0.0711 0.0471 I(0)/I(1) INFRA -2.2527 -4.5270* -3.5053* -27.7776* 0.2234* 0.0813 I(0)/I(1) LL -3.0805 -6.5500* -2.4386 -6.7355* 0.1073 0.0607 I(0)/I(1) MIS -3.8075** -9.7442* -3.8076** -9.8483* 0.0662 0.0577 I(0) Note: *, ** and *** denote significance at 1%, 5% and 10% significant level. p-values are in parentheses. For ADF and PP test the null is no unit root (H0: Variable is stationary) whilst the null for the KPSS is the existence of unit root (H0: Variable is not stationary). The baseline regression constitutes the exchange rate misalignment, interest differential and a measure of financial development, M3. We present four additional models with different variables added to the baseline regression, namely liquid liability, government budget deficit, and infrastructure for sensitivity analysis. Hansen (2000) theoretical construct allows for two threshold effects, hence, the first step is to investigate the possible existence of such an effect. Prior to that, a threshold variable needs to be selected. Since the aim of this section is to examine at what percentage exchange rate misalignment actually hurts capital inflows, the appropriate threshold variable is the exchange rate misalignment. Upon choosing the appropriate threshold variable, the next step is to observe any evidence of a threshold effect and whether there exist one or more threshold by employing the heteroscedasticity-consistent Lagrange-multiplier (LM) test for a threshold based on Hansen (1996). To test under the null hypothesis of no threshold effect, p-values are calculated using a bootstrap analog which generates the dependent variable from the distribution , where is the OLS residuals from the estimated threshold model. With 1000 bootstrap replications, the p-values for the baseline threshold models (Table 3) using misalignment strongly suggest the existence of threshold effect at 0.000. Subsequently, this suggests that there is a sample split based on the effect of exchange rate misalignment. Table 3: Threshold Effects for the baseline model Model 1 First Sample Split F-Stats 51.4045 Bootstrap P-Value 0.000 Threshold Estimates -15.0260% 95% Confidence Interval -15.446% , -9.8360% Second Sample Split F-Stats 16.2171 Bootstrap P-Value 0.2890 Note: H0: No threshold effect. The threshold is based on the minimized sum of squared residuals. This illustrates the graph of the normalized likelihood ratio sequence as a function of the threshold in exchange rate misalignment. The estimated is the value which minimizes these graphs which range at =15.02-15.44%. The dotted lines on the graphs present the 95% critical values. For example, in model 1, the asymptotic 95% confidence interval set where crosses the dotted lines. The results suggest that there is ample evidence for a two-regime specification. Also, it is worth noting that 41 of the 71 observations fall into the 95% confidence interval, hence, requires an examination of the possible existence of a second sample split. Results in Table 3, show that second sample split renders insignificant bootstrap p-value thus, indicating no further regime split. Table 4 presents the results for baseline regression. For comparison purposes, this study provides the linear OLS model without the threshold effect and a two-regime model which accommodates the threshold effect. Basically, the variables confer the correct signs in line with the prediction of the theory. Misalignment has a negative and significant effect on capital inflows in regime 2. Interest differential is expected to confer a negative effect. Results indicate that interest differentials only affects capital inflows negatively in the regime 1 but is insignificant in the regime 2. Similarly, M3 has significant effect in both regime but is positive in the regime 1 but the sign switches in regime 2. Hence, splitting the sample gives a more indepth view of the effects of these basic variables on investment inflows. To reiterate, sample splitting allows the examination of whether the significant effect is present in both regimes or otherwise. The results show that below the threshold value of 15%, exchange rate misalignment may be negative but are not statistically significant. However, above the 15% threshold level, misalignment exerts both negative and significant impact on capital inflows. A 1% increase in misalignment (overvaluation) suppresses capital inflows by approximately 1.19%. The negative effect of exchange rate misalignment on capital inflows is consistent with the findings of Hasnat (1999). Barrel and Pain (1996) argue that an apparent currency misalignment persistent over some length of time may affect investment inflows decisions. A reasonable explanation is that the relative production costs may be higher as a result of such misalignment. If the ringgit is thought to be overvalued relative to its estimated equilibrium level, then foreign production may be discouraged by the prospect of future capital loss in home currency terms. Another issue which emerges after the 1997 financial crisis is that capital inflows must be managed since reversals are likely to cause severe damage to the economy. Reinhart and Reinhart (1998) calls for greater exchange rate flexibility which is meant to introduce two-way risks, therefore, discouraging speculative capital inflows. It is, however, only possible in the context of de facto peg or a tightly managed float. Furthermore, the effectiveness of this policy depends on how much policymakers are willing to allow the exchange rate to fluctuate. A large band denotes greater flexibility but risks having large nominal appreciation which connotes possible overvaluation of the currency. The result of this study suggests that overvaluation is detrimental to capital inflows if this band exceeds 15%. Hence, policymakers should keep exchange rate fluctuations well below this 15% threshold. Table 4: Baseline regression results on the effect of misalignment on capital inflows (1991:Q1-2008:Q3). Dependent variable is capital inflows. Model 1 Linear Model Threshold Model OLS without threshold Regime 1 15.0259% Regime 2 15.0259% Misalignment -0.4267** (0.2115) -0.3186 (0.2573) -1.1955** (0.5712) Interest Differential -0.0250*** (0.0131) -0.0438* (0.01533) -0.0261 (0.0193) M3 0.2964* (0.0391) 0.2644* (0.0516) -0.5560* (0.1240) Constant 3.0468* (0.2779) 2.5394* (0.2593) 6.7313* (0.6099) No. of Observations 71 42 29 R2 0.3664 0.6484 0.4218 Notes: *, ** and *** denote 1%, 5% and 10% significance respectively. Standard errors in parentheses. Interest rate differential are consistently negative and significant in all specifications and in both regimes in majority of the threshold model. This stresses the role of interest rates in attracting capital inflows into Malaysia. Although the impact may be small, it is significant and the authorities should ensure that interest rates are kept at certain levels to maintain competitiveness of Malaysia as destination for capital investment. In this paper, the estimated impact of a 1% change in interest differential is expected to subdue foreign investment by 0.04 percentage point in the first regime and 0.03 percentage point in the second regime. The proxy for financial deepening, M3 is statistically significant in all models and in both regimes. Again, this signifies the importance of financial development in attracting capital investment into Malaysia. Interestingly, M3 is positive during the periods of low misalignment regime (regime 1) but becomes negative at higher misalignment regime (regime 2). During low misalignment, a 1% increase in M3 is expected to draw in 0.3 percentage point more investment inflow into Malaysia. This shows that in the lower regime, financial depth acts as an impetus to capital inflows. However, the situation reverse with 0.6 percentage point lower investment inflows is expected with a 1% increase in misalignment in the second threshold regime. Montiel (1999) explicitly explains this phenomenon where capital inflows increase reserves which then prompt an increase in the monetary base, M2 and M3. Such increases fuels further increments in domestic demand leading to real appreciation. Thus, any overvaluation of the currency may eventually have negative ramifications on capital inflows. Sensitivity analysis To check for the sensitivity of the estimated threshold value, Table 6 -7 and Figure 3 represents four other models which use different variables in addition to the baseline regression. The addition of taxes yields insignificant results without drastically changing the threshold value. Other additional variables such as government budget deficit and liquid liability are only significant in one of the two regimes . With the inclusion of additional variables, the estimated magnitude of each regressors differ slightly but maintains the same sign and significance level. For example a 1% increase in misalignment (overvaluation) suppresses capital inflows by 1.11-1.55 percentage point. The estimated impact of a 1% change in interest differential is expected to deter foreign investment by 0.04-0.05 percentage point in the first regime and 0.02-0.06 percentage point in the second regime. Similarly, during low misalignment, a 1% increase in M3 is expected to draw in 0.2-0.3 percentage point m ore investment inflow into Malaysia. An estimated 0.49-0.67 percentage point lower investment inflows is expected with a 1% increase in M3 in the second threshold regime. In view of the results, it seems evident that the exchange rate policy has important effect in attracting foreign capital inflows into Malaysia. Specifically, misalignment in terms of overvaluation should be kept lower than 15 percent to ensure that capital inflows remained unhurt. Table 5: Sensitivity Analysis: Threshold Effects Model 2 Model 3 Model 4 Model 5 First Sample Split F-Stats 71.1442 45.9364 53.3722 53.3722 Bootstrap P-Value 0.000 0.000 0.000 0.000 Threshold Estimates -15.4461% -15.0260% -15.0260% -15.0260% 95% Confidence Interval -15.446%, -15.025% -15.446%, -9.836% -15.446%, -0.0984% -15.446%, -0.0984% Second Sample Split F-Stats 16.4917 19.7585 22.9710 22.9710 Bootstrap P-Value 0.5310 0.3800 0.2420 0.2420 Note: H0: No threshold effect. The threshold is based on the minimized sum of squared residuals Table 6: Sensitivity Analysis for threshold estimates (1991:Q1-2008:Q3). Model 2 Linear Model Threshold Model OLS without threshold Regime 1 15.4461% Regime 2 15.4461% Misalignment -0.4278*** (0.2216) -0.3497 (0.4143) -1.5593* (0.3135) Interest Differential -0.0250*** (0.0134) -0.0462* (0.0153) -0.0599* (0.0131) M3 0.2966* (0.0414) 0.2732* (0.0488) -0.5609* (0.0744) Liquid Liability -0.0029 (0.1709) -0.0634 (0.1932) 1.1843* (0.2615) Constant 2.9780* (0.2713) 2.5259* (0.2593) 6.1799* (0.3135) No. of Observations 71 41 30 R2 0.3842 0.6503 0.5986 Model 3 Linear Model Threshold Model OLS without threshold Regime 1 15.0260% Regime 2 15.0260% Misalignment -0.4472** (0.2038) -0.3800 (0.2460) -1.1171*** (0.6229) Interest Differential -0.0254* (0.0126) -0.0505* (0.0140) -0.0237 (0.0221) M3 0.2844* (7.4922) 0.2521* (0.0472) -0.5391* (0.1477) Deficit -0.7655* (0.3059) -0.7380* (0.3099) -0.1841 (0.7174) Constant 3.0308* (0.2674) 2.5835* (0.2445) 6.6452* (0.7337) No. of Observations 71 42 29 R2 0.4285 0.6829 0.4230 Model 4 Linear Model Threshold Model OLS without threshold Regime 1 15.0260% Regime 2 15.0260% Misalignment -0.2852 (0.2181) -0.2582 (0.2720) 1.2490** (0.5612) Interest Differential -0.0275** (0.0128) -0.0419* (0.0165) -0.0311 (0.0204) M3 0.3208* (0.0401) 0.2796* (0.0583) -0.5489* (0.1245) Tax 2.1899** (1.0761) 0.1283 (0.1457) 0.1260 (0.1720) Constant 3.0274* (0.4383) 2.2463* (0.4806) 6.5027* (0.7227) No. of Observations 71 42 29 R2 0.3665 0.6516 0.4300 Model 5 Linear Model Threshold Model OLS without threshold Regime 1 15.0260% Regime 2 15.0260% Misalignment -0.3780*** (0.1977) -0.4495*** (0.2602) -1.3190** (0.6059) Interest Differential -0.0203 (0.0123) -0.0433* (0.0152) -0.0308 (0.0212) M3 0.2941* (0.0365) 0.2388* (0.0479) -0.6093* (0.1406) Infrastructure 3.0729* (3.3373) 0.0474** (0.0228) -0.0382 (0.0392) Constant 3.0709* (0.2569) 2.5698* (0.2346) 7.0433* (0.7173) No. of Observations 71 42 29 R2 0.4091 0.6815 0.4384 Notes: *, ** and *** denote 1%, 5% and 10% significance respectively. Standard errors in parentheses. CONCLUSION The objective of this chapter is to examine the impact of exchange rate misalignment on capital inflows. Results provide evidences of the negative impact of misalignment on capital inflows. To reiterate, overvaluation of the ringgit signals that Malaysia is less competitive vis--vis other countries. In addition, this paper also estimates a specific threshold value; that is the degree of misalignment after which it begins to hurt capital inflows. By employing a recent technique by Hansen (1996, 2000), this study splits the sample into high misalignment and low misalignment regimes. This study shows that misalignments hurt capital inflows in the high misalignment regime or when misalignment is greater than 15 percent. This study also confirms the work of Goh (2005) who suggests that the portfolio balance model can capture the determinants of capital inflows in Malaysia. In particular, the results suggest that interest differential is an important determinant albeit, small, hence, polic ies should be directed into maintaining a certain level of competitive interest rates. Furthermore, it is evident that financial deepening plays an important role to attract capital inflows. Finally, it is important that the Malaysian authorities continue to intervene the exchange rate and to keep overvaluation at its minimum. References ______. 2009. Finance Development. International Monetary Fund, 46(1), 1-12. ______. International Financial Statistics (IFS). International Monetary Fund. (various issues) ______. Monthly Bulletin Statistics. Bank Negara Malaysia. (various issues). ______. Monthly Bulletin Statistics. Department of Statistics. Malaysia. (various issues). Agarwal, J.P. 1980. Determinants of foreign direct investment: A survey. Weltwirtschaftliches Archiv, 116, 739-773. Aseidu, E. 2002. On the development of foreign investment to developing countries: Is Africa different. World Development, 30, 107-119. Bajo-Rubia, O. and Sosvilla-Rivero, S. 1994. An economic analysis of foreign direct investment in Spain. Southern Economic Journal, 61, 104-117. Benassy-Quere, A., Fontagne, L. and Lahreche-Revil, A. 2001. Exchange rate strategies in the competition for attracting foreign direct investment. Journal of Japanese and International Economics, 15, 178-198. Barrell, R. and Pain, N. 1996. An Econometr ic Analysis of U.S. Foreign Direct Investment. The Review of Economics and Statistics, 78(2), 200-207. Blonigen, B.A. 1997. Firm-Specific Assets and the Link Between Exchange Rates and Foreign Direct Investment. American Economic Review, 87(3), 447-465. Branson, W.H. (1968). Financial Capital Flows in the US Balance of Payments. Amsterdam: North-Holland Publishing Company. Borensztein, E., Gregorio, J.D. and Lee, J-W. 1998. How does foreign direct investment affect economic growth?. Journal of International Economics, 45(1), 115-135. Chakrabarti, A. 2001. The determinants of foreign direct investment activities: sensitivity analyses of cross-country regressions. Kyklos, 54, 89-114. Cushman, D.O. 1985. Real Exchange Rate Risk, Expectations and the Level of Direct Investment. The Review of Economics and Statistics, 67(2), 297-308. Darby, J., Hallet, H.H., Ireland, J. and Piscitelli, L. 1999. The Impact of Exchange Rate Uncertainty on the Level of Investment. The Economic Journa l,109(454), C55-C67. Dewenter, K.L. 1995. Do exchange rate changes drive foreign direct investment?. Journal of Business, 68(3), 405-433. Edwards, D. 1990. Capital flows, foreign direct investment and debt-equity swaps in developing countries. NBER Working Paper No.3497. Edwards, S. (1994). Real and monetary determinants of real exchange rate behaviour: Theory and evidence for developing countries. Ins. Williamson, J. (ed). Estimating equilibrium exchange rates. Washington D.C.: Institute for Development Economic Research. Froot, K.A. and Stein, J.C. 1991. Exchange Rates and Foreign Direct Investment: An Imperfect Capital Markets Approach. The Quarterly Journal of Economics, 105(4), 1191-1218. Gastanaga, V., Nugents, J.B. and Pashamova, B. 1998. Host country reforms and FDI inflows: How much difference do they make?. World Development, 26(7), 1299-1314. Globerman, S. and Shapiro, D. 2002. Global Foreign Direct Investment Flows: The Role of Governance Infrastructure. World Dev elopment, 30(11), 1899-1919. Goldberg, L.S. 1993. Exchange Rate and Investment in United States Industry. The Review of Economics and Statistics, 75(4), 575-588. Hansen, B.E. 2000. Sample Splitting and Threshold Estimation. Econometrica, 68(3), 575-603. Hansen, B. E. 1997. Inference in TAR models. Studies in Nonlinear Dynamics and Econometrics, 2(1), 1-14. Hansen, B. E. 1996. Inference when a nuisance parameter is not identified under the null hypothesis. Econometrica, 64, 413-430. Hasnat, B. 1999. Exchange Rate Misalignment and Foreign Direct Investment. Atlantic Economic Journal, 27(3), 235. (Anthology) Hausmann, R. and Fernandex-Arias, E. 2000. The new wave of capital inflows: Sea change or just another title?. Inter-American Development Bank Working Paper No. 417. Klein, M.W. and Rosengren, R. 1994. The real exchange rate and foreign direct investment in the United States: Relative wealth versus relative wage effects. Journal of International Economics, 36, 373-389. Kohlhagen , S.W. 1977. Exchange rates, profitability, and direct foreign investment. Southern Economic Journal, 68, 43-52. Loree, D.W. and Guisinger, S. 1995. Policy and non-policy determinants of US equity foreign direct investment. Journal of Business Studies, 26(2), 281-299. Luukknonen, R. Saikkonen, P. and Terasvirta, T. 1988. Testing linearity against smooth transition autoregressive models. Biometrika, 75, 491-499. Mat Zain, R. H. 1999. Malaysian Reverse Investments: Trends and strategies. Asia Pacific Journal of Management, 16, 469-496. Montiel, P. J. 1999. Policy Responses to Volatile Capital Flows. Capital Flows, Financial Crises, and Policies Conference. World Bank, Washington D.C. April 15-16. Razin, O. and Collins, S.M. 1997. Real Exchange Rate Misalignments and Growth. In. Razin. A. and Sadka, E. (eds). The Economics of Globalization: Policy Perspectives from Public Economics. Cambridge: Cambridge University Press. Reinhart, C.M. and Reinhart, V.R. 1998. Some lessons for polic y makers who deal with the mixed blessing of capital inflows. In. Kahler, M. (ed) Capital Flows and Financial Crises. Cornell University Press. New York. p. 93-127. Schneider, F. and Frey, B.S. 1985. Economic and political determinants of foreign direct investment. World Development, 13(2), 161-175. Sidek, N.Z.M. and Yusoff, M. 2009. An Empirical Examination of Ringgit (RM) Equilibrium Exchange Rate and Misalignment. Global Economy and Finance Journal, 2(2). Forthcoming. Serven, L. 2003. Real Exchange Rate Uncertainty and Private Investment in LDCS. The Review of Economics and Statistics, 85(1), 212-218. Sun, Q., Tong, W. and Yu, Q. 2002. Determinants of foreign direct investment across China. Journal of Money and Finance, 21, 79-113. Tong, H. 1980. A view on non-linear time series model building. In Anderson, O.D. (ed). Proceeding of the 1979 International Time Series Meeting. North- Holland, Amsterdam. Tsai, P.L. 1994. Determinants of foreign direct investment and its impact on economic growth. Journal of Economic Development, 19, 137-163. Urata, S. and Kawai, H. 2000. The determinants of location of foreign direct investment by Japanese small and medium-sized enterprises. Small Business Economies, 15, 79-103. Wei, S.J. 2000. How Taxing is Corruption on International Investors?. The Review of Economics and Statistics, 82(1), 1-11. Wheeler, D. and Mody, A. 1992. International investment locations decisions. Journal of International Economics 33, 57-76. Xing, Y. 2006. Why is China so attractive for FDI? The role of exchange rates. China Economic Review, 17, 198-209.

Wednesday, May 6, 2020

Catcher In The Rye Symbolism Essay - 713 Words

In our broken and sinful world, there are many repercussions of anxiety and fear which lead to the ultimate idea that 19 million American adults suffer from cases of severe depression. Holden Caulfield, the protagonist of Catcher in the Rye, suffers depression, which leads to conflict between him and society during his junior and senior year in high school The author, J.D. Salinger, uses symbolism and imagery to portray Holden’s lack of confidence due to his disruptive and frazzled childhood. Symbolism in Catcher in the Rye shows what the characters value and how they perceive life. The ducks symbolize Holden’s curiosity as he strives to discover himself and find his motivation in the world. Holden asks Old Horwitz, â€Å" Do you happen†¦show more content†¦The death of his brother, Ally, flipped his world upside down. The author creates the image of Ally being the most intelligent person that Holden has ever met, but he â€Å"got Leukemia and died when we were up in Maine†¦Ã¢â‚¬ (Salinger 43). Although this imagery paints a picture of sorrow in his life, Holden confronts death throughout the book. Holden blames this as one of his many factors of depression. Holden becomes subject to a routine and soon events in his life appear and it wrecks his world. Instead of having strength in himself he loses all confidence because he can’t find purpose or strength anywhere in the world. If he had a relationship with his parents, he could rely on them, but sadly, he would rather venture alone in his depressing personal hell. Holden’s forgetful demeanor and mindset results in multiple careless actions. On his way home from a fencing tournament he projects, â€Å"I left all the goddam foils and stuff on the subway†(Salinger 24). Holden creates a vivid picture of his forgetful life which ultimately leads to a destructive life. He becomes responsible for having no life because he will not explore any life. This is fitting because it all ties into the main cause of his self-conflict and confidence. He projects the word â€Å"left,† implying leaving all his stuff everywhere, creating an image of disorganization. Holden has many opportunities in his life to turn hisShow MoreRelated Symbolism in J.D. Salinger’s The Catcher in the Rye Essay2842 Words   |  12 PagesJ.D. Salinger’s The Catcher in the Rye is no exception. The abundant use of symbolism in Salinger’s The Catcher in the Rye is of such significance that it â€Å"proclaims itself in the very title of the novel† (Trowbridge par. 1). If the symbolism in this novel is studied closely, there should be no astonishment in learning that The Catcher in the Rye took approximately ten years to write and was originally twice its present length. J.D. Salinger uses copious amounts of symbolism in his novel to accuratelyRead MoreSymbolism In Catcher In The Rye712 Words   |  3 PagesCatcher in the Rye essay Essay question: Analyse how symbolism was used to develop the key ideas in the written text. In the novel â€Å"Catcher in the Rye†, author J.D Salinger uses symbolism to create and portray key idea to us as the readers. The key ideas he portrays are; Holden Caulfield is the guardian of youth and that Holden is a broken record that no one wants to listen to. Throughout the novel, author J.D Salinger often mentions a red hunting hat worn by Holden and the way in which HoldenRead MoreA Short Biography of J.D. Salinger1316 Words   |  6 Pages He was sent to military school. He started to attend Valley Forge Military Academy in Wayne, Pennsylvania in 1934. While he was there, he worked on the newspaper and yearbook for the school. Jerome David graduated there in 1936. (â€Å"J. D. Salinger Essay – Salinger, J. D. – eNotes.com†) Jerome David Salinger enrolled at New York University shortly in 1937. He achieved unsatisfactory mid-term grades there through his second semester. He never really had decent grades though. He dropped out of theRead MoreRomantic Essay, The Streetcar Named Desire: The Catcher In The Juliet1899 Words   |  8 Pagesof my portfolio are the Catcher in the Rye essay, the American rebels powerpoint, the Streetcar Named Desire essay and the Catcher In The Rye fishbowl. I chose to include the Catcher in the Rye essay because it showcased my ability to explain in detail quotes from the book and expand on one idea. I also chose this essay because I got an 82% which I believe is a good grade for a hard essay topic such as the symbolism of the ducks. In addition, I chose the Catcher In The Rye fishbowl because it showedRead MoreJ.D. Salingers Catcher In The Rye and Burr Steers Igby Goes Down1493 Words   |  6 Pages Comparative Essay The Catcher In The Rye by J.D. Salinger and Igby Goes Down by Burr Steers are both displayed as rites of passage texts. The respective protagonists of these two texts are Igby Slocumb and Holden Caulfield. These two characters are both on a journey motif, a journey of self discovery in which they both attempt to find meaning in life and understand societies values and attitudes. The two protagonists demonstrate non-conformity and rebel against the apparent hypocrisy present inRead MoreComparative Essay - Catcher in the Rye vs. Igby Goes Down1552 Words   |  7 PagesComparative Essay The Catcher In The Rye by J.D. Salinger and Igby Goes Down by Burr Steers are both displayed as rites of passage texts. The respective protagonists of these two texts are Igby Slocumb and Holden Caulfield. These two characters are both on a journey motif, a journey of self discovery in which they both attempt to find meaning in life and understand societies values and attitudes. The two protagonists demonstrate non-conformity and rebel against the apparent hypocrisy present inRead MoreHolden Caulfield s The Catcher Of The Rye824 Words   |  4 PagesThe Catcher in the Rye Symbolism Essay J.D Salinger’s Catcher in the Rye, is the story of Holden Caulfield’s loss of faith in society, and in particular adults. Salinger uses a number of symbols to demonstrate Holden’s rebellion against the phony facade of society and his desire to preserve the innocence of children, especially those he loves. Chief among them is Holden’s misinterpretation of Robert Burns’ poem â€Å"Comin thro’ the Rye†, wherein Holden mistakes the original line, â€Å"If a body meet aRead MoreComparison and Contrast of a Separate Peace and Catcher in the Rye1515 Words   |  7 PagesComparison and Contrast Essay A Separate Peace and The Catcher in the Rye The coming of age novels, The Catcher in the Rye, written by J.D. Salinger, and A Separate Peace, written by John Knowles, both interpret the lives of adolescent boys journeying through their conflicts and inner confusion to reach the level of maturity. Salinger and Knowles both discern the literal ways a typical teenager grows up with the help of literary elements such as plot, setting, character development, conflictsRead MoreThe First Person Narrator in J.D Salinger’s The Catcher in the Rye1097 Words   |  5 PagesIn J.D Salinger’s The Catcher in the Rye, the first person narration played a critical role in helping the reader to know and understand the main character, Holden Caulfield. Salinger also uses symbolism to help portray the theme that not everything that glitters is gold. Holden, in his narration, relates a flashback of a significant period of his life, three days and nights on his own in New York City. Through his narration, Holden discloses to the rea der his innermost thoughts and also helps toRead MoreReview Of The Catcher Rye And Huckleberry Finn 1497 Words   |  6 PagesEnglish Combined Coursework: Comparative Essay The theme of rejection is highly predominant in both The Catcher in the Rye and Huckleberry Finn. Both plotlines constantly intertwine with the concept of dismissal from peers, family and society. Despite being set in eras nearing a century apart; these novels perfectly encapsulate conflicts within their cultures. Huckleberry Finn is set in the 1840’s – a time when slavery was still yet to be abolished in America’s southern states. Throughout the

Tuesday, May 5, 2020

Hum free essay sample

During the Baroque music period the strings played the most important part during that time. Baroque orchestras had from 10 to 30 players which were primarily strings. The strings and winds played the same music melody motion. The Nodding brass was used as melody instruments to sustain the harmony. (HTTPS:// sites. Google. Com/site/retroviruses/flirtatiousnesss) One example of this style is a piece by Johann Sebastian Bachs The Brandenburg Concerto no. In D Major. The entire piece consisted of flutes, violins, strings, and the harpsichord. This piece is said to be a great importance to the Baroque style because of its dramatic tones and shifts in orchestra. The Classical orchestras used 30 to 60 players in four sections which consisted of strings, woodwinds, brass, and percussion. Composers during that would use the individual tones of instruments which gave a piece greater rarity and more rapid changes of tone.Just like the Baroque period the strings Mere the most important part of the section, the violins would take the melody most of the time. We will write a custom essay sample on Hum or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The woodwinds were often given melodic solos, while the horns and rumples brought power to loud passages and filled out the harmony. Famous composer Wolf Gang Amadeus Mozart helped to move the classical period to heights Ninth the production from his orchestra of one flute, two clarinets, two bassoons, two horns, and strings along with a piano. After listening to both Baroque and Classical pieces from the my music kit I could hear that with most of the pieces from the Baroque period had a feel of the dramatic which would tell me that it was a reflection of the times. The Classical pieces I listened to felt like a variety of emotions that the each composer was trying to achieve. These selections are very different compared to modern music mainly because with todays modern music has very limited harmonies while the Baroque and Classical music used complex harmonies and changing from one key to another.

Monday, April 13, 2020

Management Change and Innovation

Key issues in the case study There are a number of key issues that arise from the case of Nestle. One of the major issues that come up is the impact of mergers and acquisitions for large multinationals.Advertising We will write a custom case study sample on Management Change and Innovation specifically for you for only $16.05 $11/page Learn More As a result of its growth Nestle chose to acquire more companies in order to make an impact in its global expansion especially in foreign markets. It struck big financial deals with companies like L’Oreal and Alcon Laboratories Inc and saw acquisition of the two companies. However, not all these big deals go well and in the case of Nestlà ©, L’Oreal was largely in debt and to some extent could have contributed to its financial woes. Another issue is the diversification of the market both in terms of products and market presence. These are seen as key factors in enhancing global expansion as well as profits. Nestle aimed at improving its finances through diversification as well as strategic acquisitions. It therefore made its presence in the U.S market through Alcon Laboratories Inc. It also diversified its products to include cosmetics through L’Oreal and pharmaceutical and ophthalmic products I addition to the original dairy products. This diversification could work for or against the company as it requires more resources on the part of the management. Organizational change is yet another key issue observed in this case. Nestle went through radical changes between the second world war to 1990’s all through to date.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More These changes have come in many faces, for example in the outlook of the companies before 1980 and change in the management of the organization as well as the continuous restructuring. More issues on organ izational change will be brought up in the topics discussed below. Importance of innovation in regard to organizational change is also a key issue. Innovation in terms of technology as well as new markets cannot be overlooked. For long-term continuance of the organization innovation should be consistent with the firm’s objective. New technology and new markets should not be exclusively left be the centre stage of organizational change and growth. Changes in Nestle Nestle went through both the first-order and the second-order changes. First order change is the continuous and incremental change which may call for modifications in processes, structures or even systems; however, does not go into changing the basic strategy, core values of the organization and corporate identity. It is basically meant to sustain organizational order and continuity. Second-order change on the other hand is drastic, transformational and with far reaching implications on the core of the organization. It is aimed at changing the nature of the organization and not developing it. Nestle went through the second-order change in that it carried out activities that had an effect on the nature and strategy of the organization. Although the changes may not have been aimed at changing the nature of the organization entirely, it had far reaching implications. For example; a change in the strategy of global expansion and increase in financial gains saw nestle sail through several acquisitions.Advertising We will write a custom case study sample on Management Change and Innovation specifically for you for only $16.05 $11/page Learn More These acquisitions also meant that nestle was no longer an organization that was based on dairy products. Acquisition of Alcon Laboratories Inc and the cosmetic producers L’Oreal made a move to include cosmetics, pharmaceutical and ophthalmic products as part of nestle. Acquisition as a strategy of growth can also be cons idered as another example of second-order change. These changes effected before 1980 had far-reaching effects on Nestle and that is why they are considered as second-order change. Diversification or investment of Nestle into developing markets is another example of second-order change. Nestle diversified into developing markets not only to continue the organization but majorly increase the profits as well a change to include the organization into a cosmetic producer and supplier. This could also be traced back to when Nestle changed its strategy and started acquiring subsidiaries in foreign markets. Traditionally, Nestle used sales agents in countries that were outside its home market, but it later changed into having their presence in those foreign markets by acquiring some existing factories. Another example of second-order change evidenced in nestle is the transfer of several executive offices offshore to the U.S. this was instigated by the feeling of isolation in home offices, S witzerland and thus calling for the transfer. This move was aimed at increasing the efficiency of Nestle both in productivity and financial efficiency. The purchase of carnation in 1984 is also an example of second-order change after a number of failed acquisitions that left Nestle with many non-profitable and nonstrategic businesses. First-order change for Nestle is evidenced basically in the today’s Nestle in the period after 1990s. However, even before then Nestle sold most of its nonperforming and nonstrategic businesses.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This was basically meant to keep the organization going forth despite the losses. Under the management of Brabeck-Letmathe is seen to be leaning more on the first-order change rather than second-order. This could be due to the past failures as a result of aggressive acquisition and needed for expansion. When the CEO insists on ensuring the longevity of the organization without necessarily dwelling on short-term profits then this is first order. The change according to him is also meant to be gradual and slow is evidence that nestle is going into first-order change. As a result, it has developed approaches like corporate growth and a â€Å"corporate culture† that will ensure that longevity and continuity. Incremental approach to change Incremental approach to change is arguably the most effective method of change. Brabeck-Letmathe has to some extend used incremental approach in implementing change. One of the ingredients used is identifying the strengths of the organization an d trying to come up with ways to improve. This does not only dwell in strengths but also in weaknesses, opportunities and threats and trying to work on them. Incremental approach to change is also focused and conscious. It ensures a slow injection of change and at the same time trying to maintain internal balancing. A focus on the long term goals of the organization without laying much effort on the short-term profit motives is one of the factors key to incremental approach to change. This ensures the continuity of the business without involving radical measures that could be more destructiveness to the organization. Brabeck-Letmathe has used two vital tools that steer this type of change. These are entrenching a corporate culture and mechanisms for corporate growth. This approach ensures that Nestle establishes strengths that are not easily swayed. This is made much better by the fact that the managers have been incorporated into that corporate culture. However, there are some aspe cts of Brabeck-Letmathe approach that do not concur with incremental approach to change. For instance the complete wipe out of the executives was too radical a move. However important it may be to have managers who are well entrenched in corporate culture, we cannot ignore the fact that there is a need to listen to people or employees before creating an organizational change. In addition, we cannot ignore the role of technology in incremental corporate approach. Brabeck-Letmathe appears reluctant in embracing technology which is instrumental to growth. Though he is right on not making it the central strategic pivot point of growth his reservations are uncalled for. Brabeck-Lameck does not value social preferencing as a key aspect of incremental approach. This could be a better approach in dealing with the change managers. He seems put and as already having structures that is necessary for change. Additionally, his measures are too qualitative to fit in incremental approach to change because; this approach majorly builds on measurable quantitative aspects that become its key limitation. Implications for change managers Change managers in Nestle should have acumen in coming with the approaches that can well meet the needs of nestle. One of the key issues in consideration is the need to ensure longevity and continued existence of Nestle regardless of short operating profits. Another challenge lies with the fact that Nestle is a multinational company that has over 80 factories in different countries. This calls for efficiency and increased productivity. This increased efficiency and productivity should ensure that it doesn’t use measures that are too radical that could plunge Nestle into another financial difficulty. Restructuring process is another possible source of implication for change managers. It is costly ($300 million yearly) and a slow process that requires a lot of patience. Nestle management may have reacted to the need to sustain the longevity of Nestle by identifying factors that threatened its efficiency. For instance dropping out all non-profitable acquisitions as well as concentrating efforts on one line of products, probably dairy products. Change managers should also focus on ensuring that all the 80 factories are productive to avoid a scenario where they are servicing unproductive outlets. Therefore monitoring and evaluation should be done using the yardsticks of long-term goals of the company. In the quest of bringing change and restructuring, they should be careful to avoid strategies that may eat into company’s growth in the long run, as in the case of prior acquisitions. A similar challenge could be easily brought up by overemphasis on technology at the expense of sustainable growth. It is also beneficial for the change managers to come up with restructuring strategies that are less costly Three examples of lessons from the front line of Nestle case and possible solutions Three issues come up from the fr ontline of this study case. One of the major issues is the numerous sub branches of Nestlà © and the impact of aggressive acquisitions and mergers to penetrate foreign markets. Another subject of discussion is the diversification of products as varied as chocolate, milk products, cosmetics and pharmaceutical products. The third aspect is long-term performance or longevity of an organization Vis a Vis the short-term profit performance. Nestle just like many other big organizations used acquisition approach as a vehicle to global expansion and productivity. However, they did not consider the factors behind the deal or the financial position of the subsidiary company. This led to financial problems that saw its bad days kick in just like many other huge deals. Secondly, the need to diversify into many other foreign markets and with new products is likely to cause diseconomies in terms of management and finances. It is important for managers to weigh these implications and put structur es to deal with them before hand. Finally, many organizations and managers tend to overlook the long-term being and prefer high short term profits using very aggressive second-order approaches with great economic implications. This case study on Management Change and Innovation was written and submitted by user Cailyn Lee to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Management change and innovation Every organization needs positive change at one time or the other since it is inevitable. However it is natural for people within an organization to resist change. They will not readily accept new procedures that may be introduced and are ready to frustrate the management efforts in an attempt to maintain their status quo.Advertising We will write a custom essay sample on Management change and innovation specifically for you for only $16.05 $11/page Learn More Every organization has to be creative in order to remain relevant and competitive in the market as observed by Karp. This was evidence in the coca cola case as they were forced to change by the trends that affected their business in a negative way. Karp provides some statements which he argues that they constitute â€Å"creative counters† to resist change. In the case of Coca Cola Company, they had to apply innovation as well as change in their product development so as to cater for the requ ired health standards in the market in regards to their products. Coca Cola management had to provide sufficient leadership in their organization so as to recognize their business as one dedicated to health of their customers. This was one way of influencing people’s perceptions in regards to Coca Cola products bearing in mind that it would be the key determinant on how they would respond to the proposed change. The management at Coca Cola had to undertake some mental imagery in developing its new products that is, by partnering with Nestle (a Swiss company) in order to produce a drink that is tea based. In order to achieve this, they had to visualize the task they were undertaking in terms of success and not failure. The main challenge in this case was how Coca Cola would develop an acceptable process by all their employees. In addition, the company would be obliged to assess the impact of change on its employees. This would be one of the most gainful ways of introducing cha nge into the company with minimal side effects. How to deal with resistance and management responses A great deal of attention should be given to the way recipients view change. Hence, much of the focus should be geared towards the techniques used so that company employees may reframe their minds and accept change in a positive way. Partnership is a form of strength in achieving change in an organization.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Despite the numerous ways employees in an organization may come up with excuses such as ‘we have always done it this way’, it is up to management to remain firm and steadfast for any positive development to take place. To achieve success in the implementation of a certain task, there is a need for clearly spelt-out rules. For instance, Coca Cola was relying on the expertise of Nestle Company so as to produce a product that was he althy to the market. This was achieved by well defined rules and also by forging a sustainable partnership. Managers should not assume that resistance of change is purely an artifact of misconception by recipients of change. It is imperative to note that the effective self- regulation of cognitions can be learned or developed in an organizational setting. For example, an individual’s pattern of negative thinking can be altered. This can only be possible by provision of clear instructions. However, Abraham in his prescription of managing resistance emphasized on the detrimental effects of fatigue. He argued that techniques to be used should help people reframe a situation more positively. In the case of Coca Cola, they still use the image of youth, passion and action in their company. To recap it all, it is vital to mention that resistance should be appreciated and dealt with in a sober way. The Maurer’s fundamentals of success to change should be used. This essay on Management change and innovation was written and submitted by user EdwardF0rrester to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Wednesday, March 11, 2020

Term Vs Whole Life Essays - Life Insurance, Whole Life Insurance

Term Vs Whole Life Essays - Life Insurance, Whole Life Insurance Term Vs Whole Life TERM VS WHOLE LIFE If you're like most people, there's nothing more important to you than your family. As difficult as it is for you to imagine not being there for them, it's a risk we all face. To help be sure your loved ones have the financial protection they'll need, it's important to not only think about the unexpected, but to plan for it. If you were gone, who would provide for your loved ones? Who would help... Provide cash for family income? Cover the cost of raising your children? Pay off your mortgage? Pay off your debts? Life insurance can help give your family the protection they need while providing you with peace of mind. It can help provide continuing income and help pay the billskeeping your family's hopes and dreams alive even after your death. or to find out if you're approved for up to $150,000 of immediate 10-year term life insurance that could save you up to 30%.* Coverage starts today with no medical exam if you're approved.** Or, get more information on other life insurance coverage offered through U.S. Bancorp Insurance Services: in higher coverage amounts for maximum coverage at the lowest premiums that can be designed for long-term protection while providing flexibility in terms of premium payments and cash value accumulation. Applying for 10- and 20-year underwritten term and universal life insurance involves an interview and a medical exam (including blood and urine samples). Term Insurance Advantages Initially, premiums are lower than those for various forms of whole life insurance, thus allowing you to purchase higher amounts of insurance coverage. It is good for covering specific needs that will disappear in time, such as mortgages and other loans. Disadvantages Premiums will increase as you grow older and at the end of the term of the policy you purchase, such as 10 year term. In the 11th year the premiums will increase. Eventually, coverage may lapse due to the expense of the policy the older you do get.Generally, the policy does not have cash value. Permanent Insurance Advantages As long as the necessary premiums are paid, the life insurance policy is guaranteed to be there for your entire life. Your premium can be fixed or flexible to meet your own personal needs. The policy accumulates a cash value that you can borrow against. Loans would need to be paid back with interest or your beneficiaries will receive a reduced value of benefit if you pass away prematurely. If you ever needed to have your premiums paid for with you existing cash value, you can. If you surrender your policy, the cash value will be returned to you. Disadvantages The required premiums may make it to expensive to purchase the necessary amount of insurance you and your family needs. It may cost more than term insurance if you do not keep the policy long term. I think I would take the whole life insurance because it will adjust to your personal need as the term wont it is just a fixed rate but the whole life also has a fixed rate but it will fluxuate to fit your personal needs at the time that your in that would be why I pick whole life over term life. TERM VS WHOLE LIFE If you're like most people, there's nothing more important to you than your family. As difficult as it is for you to imagine not being there for them, it's a risk we all face. To help be sure your loved ones have the financial protection they'll need, it's important to not only think about the unexpected, but to plan for it. If you were gone, who would provide for your loved ones? Who would help... Provide cash for family income? Cover the cost of raising your children? Pay off your mortgage? Pay off your debts? Life insurance can help give your family the protection they need while providing you with peace of mind. It can help provide continuing income and help pay the billskeeping your family's hopes and dreams alive even after your death. or to find out if you're approved for up to $150,000 of immediate 10-year term life insurance that could save you up to 30%.* Coverage starts today with no medical exam if you're approved.** Or, get more information on other life insurance coverage offered through U.S. Bancorp Insurance Services: in higher coverage amounts for maximum

Monday, February 24, 2020

Assignment Essay Example | Topics and Well Written Essays - 750 words - 19

Assignment - Essay Example There are many Companies, providing different services in the field of communication, but such leaders as Century Link, are the perfect examples of high-quality services, ability to be reliable and gain a public trust. These objectives are reached through completion of exact tasks. The company provides the users with high-speed Internet. It is interested in providing the customers with security and PC support services, IPTV, DISH Network, MobiTV and DirecTV services (Century Link). Consequently, Century Link is one of the leading companies, providing the clients not only with high-quality phone and data networking equipment, but also the Company, which is able to develop appropriate solutions. The Company establishes its relations with the customers on the basis of fairness and trust. The employees of the Company are protected, compensated and promoted in an equitable manner.  Business partners are pleased with cooperation of CenturyLink. This can be explained by the fact that the Company develops its policies in accordance with the following statement: â€Å"Treat others as you would like to be treated† (Century Link). Moreover, there is no doubt that Century Link would justify its name and it is interesting to look at the history of the Company. There are many characteristics of this Company, but the point that it is brave and innovative cannot be denied for sure. Thus, Century Link is defined as â€Å"the largest Independent Telecommunications Provider and fourth largest wire line telecommunications provider in the United States - based on access lines - serving 33 states with 7.5 million access lines, 2.1 million broadband customers, 450,000 video subscribers and a nearly 17,000-mile core fiber network† (Century Link). These figures are impressive, aren’t they? Nevertheless, in order to delve into the depths of this success, it is appropriate for the audience to know that the Company was established in 1930! The Company