Model in the projection of equity portfolio Essay

Model in the projection of equity portfolio - Essay Example Company owners, executives, as well as all stakeholders assess various aspects in strategic planning and analysis of uncertainty using modeling techniques. Using financial modeling, various stakeholders can engage in calculated risks and as such minimize failure dangers while at the same time keeping client rewards at optimal levels. The aim of literally any investment analysis is being able to come up with appropriate investment decisions and even advice others on the best ways in making their investment decisions. Consequently, there exists an inextricable link between equity analysis and management of equity portfolio. Nonetheless, even for those with sufficient comprehension of equity analysis, there are a number of mechanical portfolio management elements which need to be addressed prior to construction and running of the respective equity portfolios. As exercised with professionals, real-life application of hypothetical investment ideas involves looking beyond expertise and one ’s training levels. More often than not, managing a group of portfolios incorporates comprehensive detail attention, computerization of the information, as well as embracing the need for administrative effectiveness. Generally, the mechanics of portfolio management and more particularly projection of equity portfolios require a comprehensive and more object-oriented approach. In essence, managers who look after equity portfolios have to make a choice as to whether or not they adopt a given approach in management of the respective equity portfolios (Onyango, 2003, pp. 45). Investment firms often have strict defined parameters which they make use of in stock selection and general management of their investment. Background information In the recent past, managers and many other stakeholders have taken to portfolio modeling. Portfolio modeling has come to occupy a central place in the business landscape. Whether one is running a single portfolio or lots of them in a single equity investment product, style construction and maintenance of a portfolio model is a common procedure in management of equity portfolio. More often, portfolio models acts as the standards upon which individual portfolios are equated. In general, the managers of a portfolio assign a weighting percentage to each stock in the model of the portfolio after which individual portfolios are further modified to match against the assigned weighting mix. Usually, computerized portfolio models assisted by software such as Excel, SPSS, and matlab, among others. As an example, after running a mix of corporation analyses, departmental analyses, as well as macro-economic analyses, a manager make a decision as to whether or not to own a substantial weight of a specified stock. In essence, models help in obtaining of portfolio efficiency with regard to portfolio analytics. With models, a portfolio manager may need to get an understanding of may be 30 or 50 stocks owned in similar ratios in the entire po rtfolio, instead of 100 or 250 stocks owned in different ratios in over a thousand varying portfolio accounts. Analyzing 30 or 50 stocks can be easily applied to the entire portfolio by altering weights in the model of portfolio over a specified time. What makes portfolio models outstanding is that as the individual stocks vary with time, a portfolio mana

Case Study on a Day Care Essay Example for Free

Case Study on a Day Care Essay When couples are engaging in family planning, there are several things that they have to take into consideration. One such thing is the care of the child or children when it is time for them to return to work. A common option over the years has been that of the day care or child care center. Parents today are realizing the importance of daycare centers in their children’s development. They are looking for daycare centers that not only will take care of their child while they are away but also will provide quality, real-life learning opportunities and experiences. These learning opportunities will ensure that children are prepared not only for their academic life in school but also for real life situations outside the daycare center and their own homes. There are five basic categories of day cares: Child care centers, educational day care, family day care, non-profit day care and subsidized day care. A child care center is a large day-care provider and is often franchised under a brand name. They often have extensive facilities, including swimming pools and large playgrounds. They also provide day care for multiple ages divided into smaller groups by age. Educational day cares are intended to provide children with pre-school learning and skills to prepare her for kindergarten or elementary school. They strive to provide children with rounded spiritual, physical, mental and emotional support to prepare them for lifes challenges. A family day care is provided in the care-givers home, usually with the providers children present. They provide a familiar and comfortable setting for your child. A family day care often is smaller than other types of day care. Non-profit day cares are run by non-profit organizations, such as churches or synagogues. They sometimes include religious schooling and are often more affordable than other types of day care because of their non-profit status. Subsidized day care programs are those that provide financial assistance either through the federal or state government or an employer. The day care visited by group five, was an educational daycare. The daycare caters to children between three (3) months and three (3) years old. At the beginning of September, there were a total of forty (40) children. Currently, there are twenty-six (26) children there. Space and Equipment The day care is clean and sanitary. There is no garbage lying around, floors are clean as they are constantly mopped when messes are made. The kitchen is large enough to facilitate the free movement when 2-3 persons are in there making food preparations. It is also away from the areas where diapers are changed and away from the bathroom. It is clear that great consideration was taken in regards to inclement weather, as the space in the day care is large enough to separate sleeping children from playing children and those who are learning. The area is large enough for everyone to play when they are unable to go outside even though the tables where they have their meals are there. There are five smoke detectors throughout the building, a fire aid kit and a fire extinguisher that are strategically places. Standard childproofing techniques are utilized, (covered outlets, safety gates, door latches). The center is secure, having a buzzer that is working and therefore, strangers are not able to just walk in from the streets. The building is properly lit and ventilated and doors are placed strategically as well to facilitate emergency exit if necessary. There is short term parking space at the front for parents and guardians who come to drop off and pick up their children. Caregivers’ Credentials/Qualifications Because the caregivers are expected to create a safe and stimulating environment for the children to develop in, it is important that the staff get formal training that will equip them with the tools necessary to do so. All the members of staff are qualified. The qualifications held are varied. There are members of staff who have Level 1 and 2 Certificates in Early Childhood Care and Development from HEART Trust NTA. Other qualification held by staff is a Certificate in Practical Nursing and Heart care and a Diploma in Early Childhood Teacher Education. Programme Activities At this stage of the child’s development, it is important to have activities that engage the children’s minds and develop skills that will be needed in further learning. At the day care, there is a structured schedule that includes plenty of time for physical activity, quiet time (including daily reading sessions for groups and individuals), group activities, individual activities, meals, snacks, and free time. The activities cover the duration of time that the children are at the day care from the moment of arrival to the time of departure. The physical activities come in varied forms including music movement (dance) and play time- outdoor play and free play. Free play is for the children to do whatever they feel like doing, whether it is engaging in imaginative play with their little friends or by themselves, playing with toys, or looking through their picture books. Outdoors, there is a slide, a swing, a monkey bar and some tires for the children to crawl through. Group activities include some aspects of the physical activities and story time, as well as their varied creative, manipulative activities. Such creative/manipulative activities include finger painting, drawing, and making things out of clay dough. This is done with the assistance of the staff. A lot of the stories are made up based on a series of pictures that are taped to the walls of the daycare. Caregivers also engage the children in picture games. The children form a ring and are shown pictures that they are to identify. Those who correctly identify the pictures get an extra treat at meal time. They are also taught nursery rhymes such as â€Å"hey diddle diddle†, and â€Å"itsy bitsy spider† and the alphabet song. There are designated times for snacks, and other meals. They do not allow the children to eat right throughout the day but encourage the habit of eating at intervals. There is also designated naptime and quiet time for the children. The activities are very appropriate as they are in keeping with Piaget’s theory of cognitive development. In the sensorimotor stage of cognitive development, which is the first stage, Piaget stresses the importance of discovery through a child’s active interaction with the environment. Between birth and age two (2), children discover the world using their senses and motor activity because they are limited by their inability to use language or symbols at this stage. Therefore, the hands on activities that they are engaged in, helps to enhance cognitive development at this stage. Teacher-child Relationships According to Erikson’s psychosocial theory of development, trust is identified as the first major developmental task of early childhood, and is established in childrens first relationship with their caregivers, parents and teachers. Trust is the first pre-requisite for effective learning. It encourages a sense of well-being and emotional security in young children, creating a solid foundation for future learning from the dynamic experiences of childhood. Without the support of early trust relationships with caring adults, children are ill-equipped to take the kinds of risk essential to the learning process. Trust develops when children come to anticipate positive experiences in the child care settings. If trust is to develop, children need sensitive and perceptive caregivers that understand childrens needs and consistently offer tender, responsive care. Having received formal training for the purpose of taking care of the children, they have an understanding of the importance of their interactions with the children and therefore treat the children accordingly. It is evident that the children trust their caregivers as they affectionately refer to them as â€Å"Auntie† and warm smile light up their tiny faces whenever they see the members of staff walk through the door. The staff plays with the children during their playtime. There is prompt responsiveness to the cries or outbursts of the children and reassurance is given when the infant is crying, except in cases when the child is throwing a tantrum. In such instances, the infant is spoken to firmly but gently. The ratio of teacher to child is 1: 6. However, the caretakers try to share their attentions evenly among the children. They tend to group the children together when they are interacting with them so that none is left out. There were demonstrations of positive reinforcement from the caregivers. When a child did not like what was prepared for them to eat, he or she was coaxed into eating by the use of various methods, one of which was to pretend that the spoonful of food was an airplane loaded with niceties. The child was praised when he or she would chew the food and swallow it. The caregiver would also reward the child with the option of having their juice before the water if the food was eaten. A sense of autonomy is identified as the second major developmental task of early childhood and is developed when a child is allowed to practice newly acquired physical skills. At the daycare, the children are encouraged to do things for themselves. There are toddlers who prefer to feed themselves, even though they make a bit of a mess when they do. Nonetheless, they are allowed to do so. They are encouraged to pick up after themselves and therefore run around picking up toys when they are done playing. During outdoor play, the older and stronger children are allowed to climb the monkey bars by themselves with the ‘Auntie’ hovering close by to give assistance if it is needed. Recommendations A good day care is one that has a good reputation. No one will want to send their child/children to a daycare that has a bad track record. Established ground rules and policies are important and this is something a good day care has. These rules and policies should include what to do when a child gets sick, or has an accident while at the daycare, schedule pick up times (even though there should be some amount of flexibility with this), safety policies, etcetera. A good day care has a stimulating curriculum that is age appropriate. As these are the formative of a child’s life, activities should be geared at setting a foundation of later learning. The day care should have a license that is current. This is an indication that the day care is in legal operation. Qualified staff is also important. Parents want to know that when they drop their children off at the day care, they are in good hands. The facilities should be clean and safe as well. The day care of study can be considered to be a good one. However, there are a few things that could be done to improve the facility. The acquisition of more qualified staff is something that should be looked into. Even though the caregivers try to pay attention to all the children in their care, it can be taxing for one staff member to have to oversee six children at once, especially during play time. There is a need for more toys for the children, especially building blocks. There is presently a toy drive going on to help with the endeavor of procuring more toys. In doing so, they can look into getting another slide as the tiny one that is there cannot suffice for all the children that want to use it during outdoor play. They need to also look into getting straps or bars put on the swing as there are children who have a habit of getting in and out of the swing while it is in flight. This can be very harmful to them. The monkey bar is also a cause of concern as it is very dangerous, especially for the smaller children. The spaces between each bar are too wide and therefore adjustments may have to be made by putting plastic or wooden bars in between each space to reduce the width that the children will have to climb on. There is a gate at the end of one of the driveways that is too far from the ground and so the ball continues to go under the gate when the children play in the driveway. They need to lower the gate or put something to block the opening so that the ball does not run onto the road. Closing Remarks Members of group five (5) can conclude that the visit to the day care was a productive one. The time spent with the children was thoroughly enjoyed as there was more than mere observation. The day care is a great one and should become better if the things in the afore mentioned recommendations are taken into consideration. Group five would recommend this day care to parents and guardians seeking one as they take into consideration the holistic development of the children.

Swot Of Virgin Atlantic And The Airline Industry

Swot Of Virgin Atlantic And The Airline Industry For its service company is well recognized and has been getting rewards which are providing them with a strong brand image. Zagat, 2009 ranked them as leading players for international inflight services like entertainment and flyer program. Also by travel weeklys 2009 virgin Atlantic was ranked as the best international airline. http://www.travelweekly.co.uk/Articles/2009/01/28/30064/globe-travel-awards-2009-all-the-winners-by-category.html Also in Western Europe, company has been ranked on first place in comparison to British Airways, Air France and Lufthansa. Also in January 2010, company has received award of Best Scheduled Airline and Favourite Airline. A good brand is a competitive advantage for the company to make position in global market and also to compete with its competitors. http://www.travelweekly.co.uk/Articles/2010/01/20/32852/globe-travel-awards-2010-the-winners-in-full.html Comprehensive Services Company provides a good service to its customers. Services like check in facilities, baggage handling, meal catering, and in-flight entertainment. It is one of the largest British companies which provide long haul international airlines. Sometimes they also provide passengers with special treatment i.e. providing them with the special meals, mobility aids and also with the health camps at the time of departure and arrival. Virgin Atlantic also offers flying clubs on which they can earns miles and after having a specific number of miles they can have a free ticket. It is one of the largest airlines that provide long haul tours all over the world. Strong financial performance Company is enjoying a strong financial performance even during the financial crisis and economy crisis. 2007 2008 2009 Turnover 1,816,200 2,010,900 2,238,800 Profit Before Tax 31,400 6,000 49,800 Profit Margin 1.73 0.30 2.22 In 2009 the company turnover has increased by 10.17% as compared to 2008. Also the profit before tax increased by 87.95% to reach  £49,800 in fiscal year 2009 compared to  £6000 in 2008. Also profit margin increased from 0.30 to 1.73 in 2009. From the financial analysis we can see that company is enjoying the strong financial performance that has allowed the company to expand its operating activities in both markets i.e. domestic and international. WEAKNESSES Private Ownership Its really difficult for the company to raise capital as it is private owned, which gives unfavourable position to a company in comparison to publically owned company. Publically owned company have healthier access to capital market, and also superior financial flexibility in funding initiatives. Virgin Atlantic airways needs extensive capital to grows its business market for that they have to be under public ownership rather than private ownership as private ownership provide limited amount of financing option for the company. Lack of Scale Virgin Atlantic airways in its operation is lacking behind with large players in the market i.e. large players like British Airways and Air France- KLM operates in 300 and 249 destinations whereas Virgin Atlantic is only functioning in 30 worldwide destinations only. Also British airways and Air France- KLM got fleet base of 245 and 635 aircrafts whereas Virgin Atlantic got fleet base of 38 aircraft only. So we can conclude that its competitors are large in size which gives them a competitive disadvantage. OPPORTUNITIES Growth of Global Airlines Industry With the help of research it has been found that airlines industry has got a tremendous growth in past few years and is expected to grow more in future. Researchers found that airlines industry worldwide had total revenue of $467.4 billion in year 2008. By 2013, the airlines industry globally will get the revenue of $609.3 billion i.e. increase of 23.30%. In 2008, 2.1 billion passengers travelled with the source of airways. Researchers forecasted that by 2013 the volume of passengers will increase to 2.6billion i.e. by 19.23% since 2008. Right now Virgin Atlantic is only operating in 30 destinations globally. In future as the global airlines industry is growing, it will provide an opportunity to company to increase their operating destinations which help them to increase their revenue and market. Global travel and tourism industry is growing Air travel industry is well-known within the transport and tourism industry, as it is the only source of transport for international travellers. With the help of research it has been found that in 2009 over half of the UK population had travel by the source of air travel, which tells that the demand for the air travel is very strong. Even at the time recession, the outlook for the air industry remains stronger for the long term prospective. With the help of World Travel Tourism Councils Tourism Satellite Account research we are able to discovery that the revenue passenger-Km has grown to 11.9% in June 2010. This has helped air industry to recover from the volcanic eruption in April. Also it has been found that the Real GDP for the Travel Tourism Economy was -4.8% in 2009 and now in 2010 is expected to be 0.5%. Also they have predicted that the world travel and tourism will produce over $13trillion for the period of 2008-2017, i.e. is the average growth of 4.3% per annum. We can conclude that in future increasing of global travel and tourism industry will generate additional revenue for the virgin Atlantic airways. (http://www.wttc.org/eng/Tourism_Research/Economic_Research/Monthly_Update_of_Tourism_Indicators/) THREAT Intense competition and price discounting Intense competition and price discounting The airline industry is characterized by substantial price competition, especially in domestic markets. Carriers use discount fares to stimulate traffic during periods of slack demand.Virgin Atlantic competes on the basis of price, customer service, costs, frequency and convenience of scheduling, frequent flier benefits, efficiency and productivity. Some of its major competitors include, AMR, Air France-KLM, British Airways, Cathay Pacific Airways, Continental Airlines, Delta Air Lines, Japan Airlines System, Lufthansa and UAL. In recent years, the domestic market share held by low-cost carriers has increased significantly and is expected to continue to increase, which is dramatically changing the airline industry.The increased market presence of low-cost carriers, which engage in substantial price discounting, has diminished the ability of the network carriers to maintain sufficient pricing structures in domestic markets to achieve profitability. In addition to price competition, airlines also compete for market share by increasing the size of their route system and the number of markets they serve. The increased competition in these markets, particularly to the extent the companys competitors engage in price discounting, may have a material adverse effect on the companys results of operations, financial condition and liquidity. EU regulations The European Union has passed legislation that came into effect beginning early 2005, for compensating airline passengers who have been denied boarding on a flight for which they hold a valid ticket. The legislation also imposes fixed levels of compensation to passengers for cancelled flights, except where the airline can prove that such cancellation is caused by extraordinary circumstances, such as weather, air-traffic control delays or safety issues. Passengers subject to long delays (in excess of two hours for short haul flights) would also be entitled to assistance including meals, drinks and telephone calls, as well as hotel accommodation if the delay extends overnight. In addition for delays, over five hours, the airline would be required to reimburse the cost of the ticket or provide rerouting to the passengers final destination. The imposition of the regulation would significantly increase the expenses incurred by Virgin Atlantic and may affect its profitability. Rising aviation fuel prices Due to the rising oil prices globally, the prices of aviation fuel have gone up substantially in the past few years. The average cost of a gallon of commercial jet fuel in the US has increased since 2000, from $0.7 per-gallon in 2000 to $1.9 per-gallon in 2006. According to the Air Transport Association (ATA), at a usage rate of 19.5 billion gallons of fuel a year, each penny increase in price per gallon adds $195 million in annual costs for the airline industry. Aviation fuel, which comprises the largest cost component for a transporter, is responsible for the declining margins of most air transportation companies. As a result, some logistics companies incurred huge overheads while operating in many low-volume destinations. This trend could impact Virgin Atlantics margins too as it is mostly reliant on air freight business. Slowdown of global economy According to the IMF world economy outlook, the world economy will slow sharply in 2008 and in 2009, with the US likely to slide into recession triggered by the current financial turmoil. The IMF forecasts, that the global economy, which grew by 5% in 2007, will lose considerable speed slowing to 3.9% in 2008 and 3% in 2009, marking the lowest growth rate since 2002. In the past, the IMF has called global growth of 3% or less the equivalent to a global recession. Virgin Atlantic operates through 30 countries globally. A weak global economic outlook is likely to impact demand for air travel and the company cannot offer any assurances in regards to the performance of its business model under changed economic conditions. Therefore, Virgin Atlantics business is likely to be adversely affected

Carolyn Forche and The Country Between Us :: Country Between Us Essays

Carolyn Forche and The Country Between Us      Ã‚   While reading Carolyn Forche's poetry in her book The Country Between Us, I often wondered what this woman has gone through while spending her time in El Salvador. She lived in El Salvador during an ugly state: a time when this country was in the middle of a civil war and bloodshed. All those acts of cruelty that she faced and so clearly wrote about must have been troublesome on her heart. And now thanks to her we can understand a piece of history and the cruelty of mankind through her poems. These poems that strike interest in our minds, would seem as if they would still strike fear in hers. That is, to overcome those terrible memories would take a lifetime, if that were even conceivable. But in her final poem of this book she suggests that these unforgettable details can possibly be put aside. This poem she dedicates to Terrence Des Pres, someone who also has gone through similar tragedies and titles it "Ourselves Or Nothing." The experiences they had and endu red, Terrence Des Pres and Carolyn Forche, in turn, allowed Forche the stamina and fortitude which she encouraged within Des Pres, and thus dedicated her writing to him.    Terrence Des Pres was a friend of Carolyn Forche's. He too was an author that wrote great contemporary poetry, the most significantly a poetic work called The Survivor: An Anatomy of Life in the Death Camps. He had written this literary novel upon witnessing the tragedies occurring during the Holocaust of World War II, an event that we understand to be one of the most inhumane and gruesome events of human recollection. The Holocaust intrigued him and captured his mind and soul. Besides completion of his novel he taught at Colgate University a literature course on the Holocaust. And from his experiences, as summarized of Des Pres in the Triquarterly Fall 1996, he taught students of what he repeatedly called the "dark times" of 20th-century political life. But all these experiences he faced, and the constant reminder of them carried a great price. He drank a lot, especially as his work on the Holocaust grew more harrowing. It is noted, once while writing his book he thought he was having a heart attack, but he was medically fine; instead his memories of the Holocaust had been squeezing at his chest causing psychosomatic symptoms.

Discovering Emotional Labour Essay

Emotional work is the control of a person’s feeling in order to display the appropriate emotions to others in different situations (Hochschild, 1983: Pg. 7). In other words, a person has to put aside his or her own feelings and shows the right emotions in the right place at the right time. This concept can be applied to many aspects of our daily life and when used in terms of it being sold for a wage, Hochschild (1983) define it as emotional labour. By focusing on the service industries, this essay will discuss Hochschild’s account of emotional labour and look into certain areas of concern caused by it. Although the practice of emotional work can be link all the way back to the ancient time, the term emotional labour is considered to be relatively new and is first discussed in Arlie Hochschild’s (1983) book, â€Å"The Managed Heart†. With the rise of the post-industrial work, there had been a significant increase of the service sector during the late 1900s (Hochschild, 1983: Pg. 9). In fact, one now interacts with other individuals rather than working with a machine (Hochschild, 1983: Pg. 9). Thus, this gives rise to the importance of interpersonal skills and the use of emotional labour (Hochschild, 1983: Pg. ). Whenever a person changes his or her emotions, tone, body language, etc. to conform to an ideal, it is considered as emotional labour (Hochschild, 1983: Pg. 7). It is practiced widely in many forms of modern work. A flight attendance smiling warmly while serving each and every passengers, a cafe barista showing enthusiasm when making coffee, and a nurse showing care and concern when helping a patient. All of the above are examples of emotional labour. With it being a major part of our behavior today, it is vital that we look more deeply to understand how emotional labour works. Hochschild discussed two types of emotional acting: surface acting and deep acting. Surface acting is the act of putting on or showing an emotion without truly feeling that emotion inside oneself (Hochschild, 1983: Pg. 35). This means that one has to suppress his or her negative emotions, such as sadness, anger, boredom, etc. , and display positive emotions, such as happiness, care, excitement, etc. There have been concerns being brought up regarding the use of surface acting, as it can lead to serious side effects such as depression. On the other hand, deep acting is the act of putting on an emotion that one truly feels inside (Hochschild, 1983: Pg. 35). This is done either by showing the emotion that we really feel or by true method acting. True method acting works by thinking of our past experiences we try to encourage the real emotion that we may not have felt otherwise (Hochschild, 1983: Pg. 38). In terms of emotional labour, we are often referring to true method acting which is very much similar to surface acting, one lacks the freedom to genuinely display his or herself during work. Now girls, I want you to go out there and really smile. Your smile is your biggest asset. I want you to go out there and use it. Smile. Really smile. Really lay it on (Hochschild, 1983: Pg. 4). † A pilot tells the above to the trainees of Delta Airline Stewardess Training Center. This clearly shows how much the airline focuses on the value of a personal smile to reflect it company’s identity rather than its flight s afety or the punctuality of its flight departures and arrivals (Hochschild, 1983: Pg. 4). Another good example would be the baristas working in the world largest cafe chains, Starbucks Coffee being remained consistently by their managers to provide customers with the â€Å"Starbucks Experience†. Baristas are told to put up a cheerful and enthusiastic front, connect with the customers and to develop the say â€Å"yes† attitude. In fact, beside Starbucks, many other food and beverage businesses today have already move on to focus on their customer service rather than focusing solely on the quality and taste of their products. There has been much discussion of emotional labour being â€Å"Taylorized†. Hochschild (1983) compared the labour of a factory worker and a flight attendant. She mentioned that a factory worker is simply doing physical work while a flight attendant has to do physical and mental labour, as well as also emotional work (Hochschild, 1983: Pg. 6). Quite similar to Frederick Taylor’s standardization of the physical movements of industrial workers in the early 1900s, scientific management is now used to the mass production of emotional movements (Fineman, 2003: Pg. 33). For example, Disney provides prescriptions to their trainees to always make eye contact and smile, greet and welcome each and every guest, say â€Å"thank you† to each and every guest, etc. (Fineman, 2003: Pg. 32). The Disney look also extends to body appearances, such as hair length and style, make up, body fragrance, nails length and colour (Fineman, 2003: Pg. 32). Besides Disney, a huge number of companies are also transforming emotional labour on a grand scale (Fineman, 2003: Pg. 33). This is because of the economical benefit of doing so (Fineman, 2003: Pg. 33). If employees are able to give the customers a good experience, make them feel welcome and special, then the customers may repeat their visit and purchase (Fineman, 2003: Pg. 33). This greatly concept greatly encourages firms to exploit the use of emotional labour (Fineman, 2003: Pg. 33). The smile of a salesman is seen as a key feature of a â€Å"good† employee attitude and customer satisfaction (Fineman, 2003: Pg. 33). â€Å"The infectious smile is regarded as sources of competitive advantage. (Fineman, 2003: Pg. 33). † As time goes by and till today, we all expect service to be smiling (Fineman, 2003: Pg. 3). Many see emotional labour as a potentially good as no customer will want his or her mood to be spoiled by a surly waitress or a crabby banker (Hochschild, 1983: Pg. 9). Today, it is common to have the thinking that we pay for good service and expect it to be provided (Hochschild, 1983: Pg. 9). However, there are several areas of concern caused by emotional labour . Disney or Macdonald in the process of creating standards of their Dreamland Experience or the Big Mac, at the same time also produce emotion in their employees (Fineman, 2003: Pg. 34). The employees have to perform interpersonal work within them to create the ever-present smile, politeness when under pressure and suppression of annoyances and fatigue (Fineman, 2003: Pg. 35). For those that uses deep acting to perform their work started to feel that they are beginning to lose their own identity (Fineman, 2003: Pg. 35). Fineman (2003) mentions that the flight attendances were so into their work role that they began confuse of their identity, especially their sexuality. Others prefer to take on the job by surface acting, putting up the show, looking right and no more (Fineman, 2003: Pg. 5). Using surface acting can still cause one to breakdown under pressure, when their anger, irritation or rebellion breakthrough (Fineman, 2003: Pg. 35). Beside psychological issue, there are also cultural issues of concern over emotional labour. Many fast-food workers are immigrants who have little to smile about when they arrive at work (Fineman, 2003: Pg. 36). A majority of them hav e many problems and faces much worry inside them but they are still expected to put up the smile (Fineman, 2003: Pg. 36). Another cultural issue is that not all social-cultural background support smiling in commercial exchange. However, by standardizing even the emotional aspect, MacDonald except all their staff in all countries and cultural background to smile at their customers (Fineman, 2003: Pg. 36). For example, in Japan native Japanese businessmen were taught to smile to help them with international deals (Fineman, 2003: Pg. 42). However, this is a huge conflict with the traditional Japanese way, where instant smile is considered as a cultural insult (Fineman, 2003: Pg. 42). In conclusion, due to the emerging service sector work in the late 1900s and the transformation of emotional labour on grand scale through standardization and training, we all expect service to be smiling today. No doubt, it is consider as potentially good, no one will like their mood to be affect by the others. However, there are also areas of concern over the psychological and cultural issues that arise from the use of emotional labour. Therefore, it is important for us to reconsider and perhaps not overly exploit the use of emotional labour for own good.

Hi: Strategic Management Essay

1. Company background and purpose a. General background of the company The HSBC Group is regarded as one of the largest financial and banking corporation in the global market. The Group has around 10,000 offices in 83 nations and territories in Asia-Pacific Refion, Europe, United States of America, the Middle East and Africa and the serves over 130 million customers with assets of US$ 2,354 billion as of December 2007. The Hong Kong ad Shanghai Banking Corporation Group was established in 1865 to finance the growing trade between China and Europe, and is one of the largest banking and financial services organizations in the world. Its international network comprises over 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East, and Africa (‘Who is HSBC?’ 2006). Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services, including personal financial services, commercial banking corporate, investment banking and markets, private banking, and other activities (‘Who is HSBC?’ 2006). b. Clear purposes of the case HSBC emphasizes the importance of building shareholders’ value, and believes in the values and talents of its own employees, which are employed and spread all over the world. HSBC wishes to stay ahead in a very competitive global financial market, and by maintaining a great brand name, an established customer base, good and loyal employees, tight control over operating costs and constant adjustment of business strategy to cater to customers’ needs, it maintains its success in its leadership position in Hong Kong’s highly competitive banking industry. With this success, this paper studies the strategic management of HSBC. 2. Industry and general environment a. General information on industry environment (Five-forces The state of competition in an industry depends on five basic competitive forces. With this, Porter’s 5-Forces Model is useful for understanding the context of the  industry, in which the firm operates (Porter, 1998). Rivalry In HSBC, this is caused by several factors, such as the presence of a larger number of firms that compete for the same customers and resources; low switching costs for a consumer can switch from one product to another; strategic stakes are high when a company is losing market position; a diversity of rivals with different histories, cultures, and philosophies; and industry shakeout. Similarly, HSBC also faces this factor since they have a lot of competitors in the banking and financial industry. In order to gain an advantage the company has to do some competitive moves. Threat of Substitutes Substitute products refer to products in other industries (Porter, 1998). The threat to HSBC is the emergence of competent rivals that provides the needs of the target market. In accordance to the threat of substitutes in HSBC, HSBC completely manages this factor to attain business success. HSBC, in its commitment to customers in the banking and financial industry, demonstrates value and return on investment. Buyer Power This refers to the impact that customers have on a producing industry. In HSBC’s customers, buyer power is strong, such that this could provide HSBC’s rivals with a strong and efficient business. In HSBC environment, the buyer power is the impact that customers have on a producing industry. As there are still only a few banking and financial industry who can compare to what the company has managed to achieve, the bargaining power of buyers is not as great compared to the following epoch, and, coupled with the industry being a key supplying group for the buyers, which in this case, are large companies and several high end individual customers, the bargaining power of buyers have notably not budged. Supplier Power The power of suppliers over HSBC is also strong, as it also contributes to the decline of the business of the company. Due to the increase of prices in the market, prices of raw materials also increases, thus, give additional  costs for the company. In this regard, some of HSBC’s suppliers of banking and financial industry components can possibly control their business operation. Barriers or Threat to Entry The economies of scale play a significant role in the cost of produce the product and service. Companies in the banking and financial industry have competitive fixed costs and spend relatively large on plant and equipment. Moreover, competitors in the industry are not likely to cut their price to defend their market position. In an industry experiencing fast market growth, patents, proprietary knowledge, and brand reputation are also considered as barriers for companies entering the industry. b. Any opportunities & threats? Opportunities – Sustainability reporting requirement by government to companies thus increasing opportunity of banking institutions. -Growth by increasing market share through mergers and acquisitions within the industry. -Develop new products and services which link to changing people’s needs and services -Incorporate new technologies in production to stay ahead of the competition Threats The following are the threats of the company: -Economy – due to Expensive borrowing -Expansion, Mergers and Acquisitions of HSBC may lead to failure -Competition – other major companies entering the market could affect their revenue -Rules and Regulations of different countries 3. Internal activities a. What are primary & support activities within the firm? In HSBC, their strategic management can be analysed through the management program that they implement in the latter part of 2003, which is the Managing for Growth programme. Managing Program is a strategic plan that provides the company with a blueprint for growth and development from 2003 to 2008 (‘Strategy’  2006). This strategy builds on the company’s strengths and addresses the areas where further improvement is considered both desirable and attainable. HSBC’s core values are integral to its strategy, in communicating them to their clients and other stakeholders comprise an emphasis on long-term, high productivity through teamwork, ethical client relationships, an ambitious and confident sense of excellence, being international in its image, prudence, creativity and customer-oriented marketing HSBC, 2008). In addition, there are various elements in attaining HSBC objectives, and these involve accelerating the growth rate of revenue, enhancing brand strategy further, developing productivity, and maintaining the industry’s prudent risk management and strong financial advantage. Developing the skills of their employees is also given emphasis to ensure that all employees understand how they can contribute to the successful achievement of HSBC’s objectives (‘Strategy’ 2006). b. Any strengths and weaknesses? Strengths: – ensure corporate responsibility and business ethics therefore customer confidence is high -Highly experienced management and staff available in the market -Growth by increasing market share through diversification of products that supports sustainable development -Able to promote several products and services that meet the needs of the customers Weaknesses -Barriers to expansion due to environmental regulations by governments -Licensing problems -Highly competitive market -Raising money from banks rather than shareholders. Banking and financial products and services have become an important industry player by investing in diversified products and services, 4. Competitive Environment a. How do the firms compete/take competitive actions/responses? The company is experiencing different problems with competitors and its standing in the industry is down. But given the proper use of their strategic management they have, the company are able to stay in the competitive market. The company has competitive advantage over banking and financial  industries. One of the aspects of strategic management of HSBC is its brand name. The competitors i The company is known as one of the established baking and financial industry in the global market. People easily recognise the company and the different products and services that they provide. They can easily think about the company when banking and financial matters are mentioned. Another strategic approach of the company is its image with the clients. The company is known as a banking industry that provides excellent service to the clients. This can be proven by the frequency of visit clients do to the company’s branches and other marketing venues. Moreover, strategic management of the company is its increasing venue of marketing their products and their services. The company is taking steps to ensure that their products and services can reach more people at more locations, hence company engaged in having more branches at different places. The company also made use of the internet and created a website that more people in the world can use to transact with the company. Lastly, a strategic approach of HSBC is the wide range of business venture they are engaging in. The company is currently engaging not only in banking and financial aspects but in other relevant industry 5. Strategic intent and mission/vision a. Purposes of the firm Based on the given case, the strategic intent of HSBC is to become the number one choice of the customers for the banking and financial services needs. The company’ products and services have been made to provide more convenience for customers. b. What goals to be achieved? The goal of the company is to provide quality banking and financial products to their target market while providing values to their employees, management and shareholders. Their goal is to reach more customers all over the globe through their online transactions and website. c. Any formal mission/vision statement? The company’s mission statement is to be one of the globe’s great specialist banking groups that is driven by commitment with their values and philosophies. The company envision to lead in the global market and deliver  an excellent client experience based on their outstanding sales, services and solutions. In addition, the company aims on achieving superior, long-term and ethically based return for their shareholders and building highly motivated high performance teams and creating challenging, rewarding and convenient environment for their employees. 6. Strategy formulation a. Ask the following questions: i. Business-level strategy In terms of business-level strategy, it is said that HSBC is keen on expanding their business portfolio to small and medium-sized enterprises which they considered as an essential market segment to HSBC groups. In addition, their business level strategy is to provide value to internal stakeholders of the company such as employees and shareholders. ii. Corporate level strategy HSBC Holdings complied with the entire applicable code provisions of the host country regulations on their corporate governments. In terms of corporate level strategy, the management see to it that they adhere to their corporate responsibility to the community and that they are able to adhere to their corporate governance policies. iii. Cooperative strategy In terms of cooperative approach, it can be said that the entire management have a good relation with shareholders and their customers. They also cooperate with government institutions to ensure that they always adhere to the needs and demands of their clients. iv. Others i.e. acquisition, joint venture etc To expand their business portfolio, HSBC attempts to acquire various industries in different country. Merging and acquisition to existing industries in a specific nation is the approach use by the company to enter the foreign market. In addition, merging and acquisition enables the company to expand their groups and provide more diversified financial products and services. 7. Strategy implementation a. How does the firm implement the chosen strategies? The firm implements their chosen strategies by using an intensive strategic planning. In addition, the firm also implements their chose strategies  through their management team and leaders. Accordingly, the presence effective and efficient leadership in today’s organization imposes a great responsibility to the organization’s team and management networks as leadership implies the overall capacity of the organization’s performance like for instance, in terms of operations and research development. b. How effective? Based on the given analysis, it can be said that the implementation of the business approach of HSBC has been effective because of its strong competitive advantage and position in the marketplace today. The use of strategic planning helps them to monitor their strategic implementation. c. Evaluation of action plans/tactics (key actions) The action plan of the company has been able to lead them in having competitive advantage in the global market. With this information, the company must continue to find innovative strategic programs and relate effectively to other companies in the global market. The company must efficiently and effectively create a good relationship with their customers and shareholders, to continually operate. HSBC must continually conceptualize and implement strategic management approach to be able to set trends in the banking industry. Aside from developing marketing strategies, the company must focus on building employee and customer relationships, in accordance to strategic marketing concepts, for it is essential to determine and focus on the needs of the customers, as customers are the reason for being alive in the business and marketing industry. 8. Summary a. Key current situations The current situation of the banking industry can be considered to be impacted by the growing issues in the global market, such as the sub-prime crisis. The global presence of an organisation, in this case, the HSBC Bank, has been due to the strategic management and business approaches of the company. It is important to note that with globalisation and with the current rate of advancement in technology, there is an increasingly bigger chance of getting the entire firm’s marketing message through to the target  markets with the utilisation effective strategic management. As discussed, the wise use of a strategic management as well as information technology could either attract or lose existing and potential customers. The strategic marketing and management approach of the firm, therefore, need to be consistent with what was preset as marketing objective of the firm and in an industry as provision where innovations are an edge, this is very vital. b. Future of the firm It can be said that the global market provides opportunities for the baking industries to develop relationships with their stakeholders it has been found that the number of competitive moves increased as issues and problems in the global market arise. It becomes more important to manage relationships as competition increases through the use of e-commerce. It can be stated that the most effective strategy for HSBC can use in the future is a collaborative one with their channel partners. In addition, another future strategy of the company is to use integrated marketing communication to reach more clients in the global market. Reference David, F.R. (1999). â€Å"Strategic Management, Concepts and Cases,† 3rd ed. Prentice-Hall, Inc. David, F.R. (2001). Strategic Management: Concepts and Cases. 8th ed. Prentice Hall, Inc: Upper Saddle River, NJ Drejer, A. (2002). Strategic Management and Core Competencies: Theory and Application. Westport, CT: Quorum Books. Elkin, P. (1998). Mastering Business Planning and Strategy: The Power of Strategic Thinking. Knod, E. & Schonberger, R. (2001). Operations Management: Meeting Customers’ Demands. 7th Edition. Boston, MA: McGraw-Hill Irwin. Neumann, E. & Sumser, R. 2002, Marketing Communications: A Vital Element of Achieving Change. The Public Manager, 31 (4), 9+. Proctor, T 2000, Strategic Marketing: Case Questions 1. What is the firm’s competitive strategy? 1. In accordance with the case study to the business approach and strategies of HSBC it can be said that the company has been able to continue to grow and expand their business in the global market. It can be said that HSBC has been able to use various strategies which enable them to sustain their competitive position in the global market. Based on the conducted reviewed in the previous section, it can be said that HSBC strategy includes differentiation approach and innovative approach. 2. The company has been able to have a sustainable focus on their core business values ensuring that their goals, objectives and mission are achieved. In addition, the company has been able to sustain good relationship with its target market and all other stakeholders and the company focuses itself on satisfying the costumers by providing them quality products and services in the online. The ability of the management to manage their financial resources and limit their expenses to sustain their needs f or expansion has also been considered as one of the capabilities that sustain their competitive advantage. The strategies used by the HSBC include Intensive strategy, which aims to competently position and promote their products and services in the global market. The industry has also utilized the Integration strategy and forward integration in order to promote and closely manipulate where all the HSBC products and services are being sold. To improve financial performance, the company sees to it that they utilise all their resources in a manner that  will be beneficial to enhance the performance of the company. 3. Based on the given case, it can be said that the two resources and capabilities of HSBC includes their flexibility and innovation strategy. It can be said that the ability of the company to expand their business is through their ‘flexibility and innovation’ which enable HSBC to counter the risks of erosion and losing of their competitive advantage. In order to cope with the various influences and effects of market environment changes, and to sustain their competitive advantage, the management of HSBC has been able to improve and expand its organisation so as to conduct business operations and activities on a global sc ale which include the expansion of HSBC through the online presence of the brand in different parts of the world. Herein, the management of the company has been able to improve their organization structure its organisational structure to achieve their organisational objectives. In addition, the improved organisational structure is done in order to initiate speedy and flexible measures in managing their internationally diverse employees. 4. The management of HSBC has also been able to focus on their research and development department and to initiate innovative strategies designed to provide a competitive advantage and edge in the marketplace. As business gravitates towards a global scale, entrepreneurs find themselves faced with the challenge of producing new and better products at reduced cost and market price. Daft (2003) pointed out that in managing a global environment, managers of HSBC must be characterised by the ability to bring about change through innovation and creativity. Further according to Daft, a revolutionised manager sees change, rather than stability, as the nature of things (2003). Innovation as a ground for doing business in the 21st century will be the consistent tugging force that the organisation must either strive to adopt or suffer the consequences of being left behind by competitors. In addition diversification approach is also considered by HSBC to ensure having sustainable competitive advantage. Part of the diversification is to generate new coffee products that would meet the needs of the consumers in various parts of the world 2. What is the Strategic intent of the company? 1. HSBC strategic intent is to provide more options for their clients  by partnering with other international and local banking and financial industries. The company also diversified their offerings to different products, services, categories and other physical assets. Furthermore, based on the given case, the company’s strategic intent is to sustain their competitive advantage by compelling what the needs and demands of their target market and expanding their business portfolio in the global market. The company’s strategic intent is to do their business in a slow but sure manner by becoming innovative in what they are offering for the customers. 2. Another strategic intent of HSBC based in case is its goal to be recognised and respected as a global banking and financial institution and brand and to dominate the global market through their high quality product and service offerings. As discussed in the case study, the strategic management of HSBC have been focusing on how the products would gain interest from their target market and how they can be able to generate sales with their products. This is HSBC’s stronghold where it continues to yield strong sales revenue by leveraging off its excellent branches in different locations. strong brand name and excellent reputation among customers. HSBC has also been continuing to create affiliate websites to expand their business market among various consumers. 3. Another strategic intent is with regards to the achievement of their mission and vision by giving priority and values to their shareholders and customers. Based in the case, HSBC is committed to their mission of being the number one choice of the customers in their banking and financial needs. With custsomers increasingly willing to switch banking companies because of the wide variety of choice available, it is of paramount importance that the company would stick to their strategic intent and used effective approach o promote excellent marketing strategies. Its importance as possibly a bank interface could also be exploited by the industry. Since the homepage is the first thing that the users saw upon entering the website, it also was the most critical aspect on the site, where the customer should get an idea of what the site is an about and where to go within the site. All the graphic elements noticeable in most all of the reviewed websites apparently serve a purpose–to solidify the direct relationship between the customer and the brand and to make use of the visual attraction vital to clients’ decisions.