Cash Basis and Accrual Basis of Accounting

1. Under cash basis of accounting, revenue and expense recognition would occur when cash is received and disbursed. Contrast cash basis of accounting with accrual basis. Give suitable examples. ACCRUAL BASIS OF ACCOUNTING – An accounting basis wherein revenue and expenses are recorded in the period in which they are earned or incurred regardless of whether cash is received or disbursed in that period. This is the accounting basis that generally is required to be used in order to conform to generally accepted accounting principles (GAAP) in preparing financial statements for external users.

CASH BASIS OF ACCOUNTING – The accounting basis in which revenue and expenses are recorded in the period they are actually received or expended in cash. Use of the cash basis generally is not considered to be in conformity with generally accepted accounting principles (GAAP) and is therefore used only in selected situations, such as for very small businesses and (when permitted) for income tax reporting.

In simpler terms, Accrual Basis accounting will record an item as an expense if a firm incurs debt that is to be paid off at a later date; it will likewise assume an item as revenue if a counter party agrees to pay the firm on a later occasion. This is unlike the Cash Basis Accounting method, which ignores pending inflows and outflows of cash and instead records them when cash is received and paid out. To put it as simply as possible, accrual accounting adds income as it’s accrued (earned) Cash basis doesn’t add income until it is actually received.

If a company gives a customer a product that they will actually pay for later, the income is entered into their accounting ledger even though payment has not yet been received. This is accrual accounting. It has the advantage of tracking upcoming expenses and income for better future planning. In Cash Basis all accounting is done strictly on the actual movement of cash or cash value in an account. It is simpler and does not recognize promises to pay or debts owed as either expenses or income.

Personal Values Development Paper

Personal Values Development Paper Karen L. Bailey RN University of Phoenix – Online Ethics in Management PHL323 Nichole Anderson Harris January 04, 2010 Personal Values Development Paper Many wonder about someone’s personal values and how or when value were and are developed. Through research and discussions I found that personal values are developed at an early age. When we are born we have no personal values but as we grow we are taught and learn those personal values by our parents, peers, and community.

There are so many people with different values and ethical standards that there may be some that are similar to ones own, however, it would be hard to find any two exactly alike. In essence “a value is a belief, a mission, or a philosophy that is meaningful. Whether we are consciously aware of them or not, every individual has a core set of personal values” (Posner, 2007). Human nature as well as life experience come into play in further development of values, serving to both reinforce and moderate our value sets. When people are faced with dilemmas about values certain questions will arise, such as what forged the feelings and beliefs.

Today’s globalizations also requires people to understand different cultural ethics. An individual’s personal values that he or she hold should be regarded as worthwhile. Those values will represent that person’s highest priority and driving force. Personal values and ethics are carried by an individual in both personal and business worlds. If an individual carries personal values and ethics into the workplace and that workplace doen’t maintain ethics as a priority then the individual would not succeed at that company. Personal values development occurs in three levels containing various stages (Kohlberg, 1971).

The first level, preconventional level, is when a child responds to the cultural rules, characterized as good and bad, right or wrong and are interpreted in terms of physical or self gratifying consequences like punishment, rewards or exchange of favor or even the physical power of those who express the rules and the labels. This first level is then divided into three stages: Stage Zero which is the egocentric judgment stage in which a child makes judgements of good on the basis of what he likes and wants as well as bad on the basis of what he doen’t like or what hurts.

No concept of rules or of obligations to obey or conform independent of his wish. Stage One is the punishment and obedience orientation stage. Here where the physical consequences of action determin its goodness or badness regarless of the meaning or value of these consequences. Stage Two and final stage of level one is the instrumental relativist orentation in which the metaphor “you scratch my back and I’ll scratch yours” comes into play and not loyalty, gratitude, or justice (Kohlberg, 1971).

The second level, conventional level, is where an individual perceives the maintenance of the expectations of the family, group, or nation as valuable in its own right, regardless of immediate and obvious consequences. That persons attitude is not only one of conformity to personal expectations and social order but also of loyalty to it. This level consists of two more stages. Stage Three is the interpersonal concordance or “good boy-nice girl” orientations in which good behavior is what pleases or helps others and is approved by them.

Stage Four known as the “law and order” orientation and is where an individual is oreinted toward authority, fixed rules, and the maintenance of the social order. Otherwise known as doing one’s duty, showing respect for authority, and maintaing the social order for its own sake (Kohlberg, 1971). The third and last level is the post-conventional, principled level. On this level, which has two more stages, is where an individual defines what moral values are and prinicples that have validity and application a part from the authority of the groups of persons holding him or her a part from the individual’s own identification with the group.

In this level there is Stage Five, the social contract legalistic orientation in which the right action tends to be defined in terms of general individual rights and standsards that have been critically examined and agreed upon by the whole society. Stage Six called the univeral ethical-principle orientation in which right is defined by the decision of the universality, and consistency. Also known as the “golden rule” of equality of the hman rights, and respect for the dignity of human beings as individual persons. My values may have both positive and negative impact in the workplace.

Treating others with dignity and respect, might help my patients surroundings and would be considered a positive impact. In turn this will help those same patients decide on how others should be treated because they enjoy being treated respectfully and with dignity. Positive value occurs when my values and ethics guide me to treat patients in a respectful and honest manner, which will ensure my integrity as a medical professional and will allow me to gain the trust of those patients. This would increase my performance. Offering nursing care to patients with respect will give me a sense of pride in what I am doing.

However, there is a negative side to nursing as well. That negative side, e. g. patient overload, will also have an impact on my perfomance and on patient care, which will decrease the workplace equity. One could say that an individual’s values are made of all that has happened in the course of one’s life. This includes influences an individual learns from parents, church, family, friends, peers, education, culture, and reading as well. Most people will realize all the environmental factors that influence them and will develop a clear and meaningful set of values and priorities.

Once an individual has defined those values, the values will then impact ever aspect of that individuals life. In conclusion, when implementing values in an indivial life or in the workplace that individual will continue to stay focused and work hard. Many factors contribute to the development of values and guide actions that are learned through life experiences, teachings at home, school and or church. Personal work values can change throughout and individuals life and have a large impact on performance in the workplace.

People should remember that someones personal values or beliefs should be welcomed in the workplace as a way of developing the company or organization and help it move into the future. One must never forget that when making decisions values play a key role in those decisions. References Kohlberg, L. (1971). Stages of moral development. Retrieved January 04, 2010, from Xendodochy: http://xenodochy. org/ex/lists/moraldev. html Posner, R. (2007). The Power of Personal Values. Retrieved January 04, 2010, from Gurusoftware. com: http://www. gurusoftware. com/GuruNet/Personal/Topics/Values. htm

Marketing and Ikea

Azfariza Abdul Razak (G77052) IKEA – The Global Retailer How has the globalization of markets benefited IKEA? IKEA has been a great success in its home country. By expanding its market globally, now the same great products are offered in 33 different countries. As the middle class target group enjoys having great looking furniture but at an affordable price. And because of having this strategy there is a lot of demand in which makes IKEA renowned brand. IKEA managed to avoid the costs that associated with shipping the product all over the world.

Its strategy to engage with suppliers in each company’s big market has led IKEA to reduce price of its products and boost the number of sales. The main strength of IKEA is low of product price and combines with solid sales performance. The globalization of market made IKEA establish its stores almost in every country in the world as the cost of transportations, labor, and materials can be reduced. How has the globalization of production benefited IKEA? It has benefitted IKEA beyond their expectations.

As the barriers for doing business with other countries being low, they were able to contract different manufacturers for each item they would introduce later on in their shops. They can find low cost suppliers, which in exchange can make them, lower the prices of the product where the consumer will also benefit from. Globalization of production benefits IKEA also by letting them save in the shipping department, seeing as they use local suppliers in the biggest stores that they have.

IKEA’s success is based on principal marketing strategies that remain the same throughout the world, which include a catalogue that is printed in different languages, for many countries, and the use of the colors of the Swedish flag blue and yellow in the IKEA logo. This is combined with an emphasis on customer freedom and choice with regard to buying and taking home products, and low prices intended to create a “sale” mentality amongst customers.

This aggressive price strategy coupled, with a wide product range catering for every potential lifestyle and life stage of a consumer, can best summarize the company’s recipe for success. The fact that IKEA targets all age groups and households makes it an attractive proposition to a wide spectrum of most countries’ consumers. To have strong sales performance IKEA understands the uniqueness of target market in each country. What does the IKEA story teach you about the imits of treating the entire world as single integrated global marketplace? Every country is unique and has different cultures. The preferences and tastes of consumers are different according to the lifestyles and needs. So, in order to penetrate the global market, a company must know what to offer in which market. If the strategies to provide low price of product offer a company must identify what and which factor that can bring the lowest cost in term of labor, transportation, materials and so on.

It taught us that should try to fit the needs of each country and culture into our way of doing business with them in order for both sides to benefit from it. Not even if the demand in other countries might be different for a certain product, we should always be prepared to fit into the preference of the country we’re established in. Every culture in every single country varies when it comes to taste. Need to adapt local product in these markets for these consumers (China in comparison to United States).

Chien de Printemps

‘The narrator of Chien de printemps could not have chosen a more mysterious and elusive subject for his biographical project than Francis Jansen. ’ Discuss. This novel opens up with the simple straightford lines « J’ai connu Francis Jansen quand j’avais dix-neuf ands, au printemps de 1964, et je veux dire aujourd’hui le peu de choses que je sais de lui. » the author’s intent is to put down in black and white all his memorys of jansen. He wants to catagorise, and organize his memories and by making them tangiable he feels that in doing this they will be reaffirmed.

His time spent with jansen was so brief, yet significant and he wants to validate his memories to try and gain some closure from this elusive mentor figure that he had known when he was young. The author always had a passion for organizing things, and we can see this as he volunteers himself to categorize all of jansens photos which are strewn haphazard between 3 suitcases. it was while doing this job that the author began to get close to jansen and admire him immensely.

This novel has no chapters, it is formed from a series of memories, each of different length all strung together and giving us snapshots of information from the author’s past. In fact, reading this novel is much like leafing through a photo album. In a photo we see a frozen memory that is boarded on all sides and in this novel we are given snippets of information here and there and must essentially fill in the blanks ourselves to complete the story. Jansen is a very mysterious character throughout this novel and we never gain a true insight into his complex personality.

From the mere glimpses we are shown we may deduce that jansen is a very solitary man who enjoys his own company. He is minimalistic in his decor and does not care for material possessions. We can also see that he is a different man from who he used to be. It is clear to us that jansen has lost his spark, his enthusiasm and his joie-de-vivre. As the story progresses it becomes apparent to us that jansen was only ever truly close to 2 people in his life, his mentor in photography Robert Capa and his lover Collette Laurant.

Unfortunately both of these people died in circumstances unbeknownst to us and it is clear that jansen has never been the same since. In losing these people he lost what he cares about most in the world. Jansen slips into a form of depression and isolation which he describes as ‘trous noires. ’ He loses interest in the world and doesn’t even like contact from other people- no phne calls, no answering the door. Jansen is a very private person and as few friends so it is no surprise then, that the author finds so it so difficult to get jansen to open up to him. Jansen is the polar opposite to ‘la lumiere natural qui baignait chacune de ses photos’ as he himself is shorouded in mystery. We can, however gain many clues into this ambiguous character through thorough examination of the text. Jansen’s atelier provides many clues about this character. His decor is minimalistic with only a few sofa’s and pictures in the room, whether this minimalism is by choice or by lack of money we are never told.

He has no whiskey left to offer the author a drink which would suggest that he does not have much money, although later in the novel we learn that he frequently checks into a hotel for nights at a time which would cost a lot! This shows that once we think we are on track for discovering a bit about jansen and being able to pin him down in our minds, something else will be uncovered which will discredit our theory entirely. In jansens apartment there hangs a picture of him and Capa. From reading jansens expression we see that he is ‘timide et melancolique, et ne semblait pas tout a fait a son aise. Capa has his hand on his shoulder and ‘on aurait dit qui’il le soutenait. ’ Although we never find out the circumstances of jansens unhappy adolescence this portrait provides us with the key to jansens love and affity for his mentor Robert Capa. It is ironic then that now jansen is ‘une sorte de double de Capa’ who now has a protige of his own. There is a lot of similarity in fact, including the ages of the author when he started working for jansen and jansen when he started working with capa.

Also as the novel progresses we can see that in both cases, once the mentor figure is taken away from from the protige, darkness and confusion become a dominant feature of their lives. ‘moi aussi il m’est souvent arrive de tomber dans des trous noirs…’ Throughout his time spent with jansen the author learns various facts about jansen’s life which he is able to recall and write down… ‘il etait ne en 1920 a Anvers…sa mere et lui avaient la nationalite italienne…il a passe quelques annees d’etudes a Bruxelles… but these mere facts do not satisfy the author.

He knows the facts and that’s it. What he craves to know is the person and he is using this ‘biographical project’ on jansen in order to piece together all the information he has in order to get some kind of answers. This does prove difficult for him as jansen is a difficult person to get information from – ‘il se replia de plus en plus sur lui meme…c’etait un home qui parlait peu. ’ Jansen did not reveal much information about himself to the author, in fact ‘la qualite qu’il possedait dans son art et dans la vie qui est si precieuse mais si dificile a acquerir: garder le silence. Une photographie peut exprimer le silence, mais un ecrivan utilise les mots pour s’exprimer. It is mentioned in the novel que ‘de tout les caracteres d’imprimerie, il [jansen] m’avait dit qu’il preferait les points de suspension’ this is mirrored in his life when we see him leave the author on a point of suspension when he departs for mexico. This suspense and unfinished business is what contributes to the inspiration of the author to write the book. It proves increasingly difficult for the author to understand francis jansen.

His photos seem to serve as a painful reminder of something in his past ‘je ne supporte plus de les voir…chacune de ces photos etait pour moi un remords…il vaut mieux faire table rase. ’ He carries immense burden with him which has caused him to lose his joie de vivre and become a very complex person. Although no definitive explanation to the reason behind this is offered, it is strongly suggestedque ‘c’est peut-etre a cause de certains eventements de sa vie…’ His whole life fell apart when he lost his lover collete laurant and his dear friend and mentor Robert Capa.

Their deaths ‘avaient produit une cassure dans sa vie’ and now his life seems to have no importance or purpose. We see that jansen is becoming increasingly depressed and losing interest in life. Il excerce de moins en moins son metier. ’ He wants to start anew. He wants to escape. It is so difficult for the author to find out about jansens past because jansen himself is trying to forget but the author wants to remember.

Finally, 30 years later, the author successfully collects all his thoughts and experiences of jansen and finally puts them on paper, in doing this he begins to contemplate and think and it suddenly becomes clear to him why jansen left the way he did. Jansen pensait qu’un photographe n’est rien, qu’il doit se fondre dans le decor et devinir invisible pour mieux travailler et capter ‘la lumiere naturelle’ he pulls away from people because the best way to experience life is to ‘fondre dans le decor’ and observe and quietly appreciate things without a fuss.

His life was dedicated to fighting the bleakness of reality with photography and jansen found that the only way to find ‘natural light’ both in terms of photographs and indeed happiness in life is to remain silent and in the background. After realizing this, the author is finally at peace and can, at least to some extent, comprehend the person that was the elusive Francis Jansen.

A Report on a Case Study on Measuring Intangible Assets an Indian Experience

A REPORT ON Case Study on Measuring Intangible Assets – Indian Experience – 1 – BEYOND BALANCE SHEETS… Measuring Intangible assets- an Indian case study “Just as you can’t measure what you can’t describe, you can’t manage what you can’t measure… ” While many companies have strived to differentiate their annual reports and make them informative, attractive and easy to read, most still take a rear-view-mirror approach, focusing almost exclusively on history and analyses of past performance.

But in today’s world, as we have advanced into the Information Age, more companies will find that those assets most easily measured are not necessarily most valuable; increasingly they will be forced to measure intangible assets in a predictive way that is more reflective of how the company is actually run. Today, even traditional manufacturing companies are finding themselves not simply selling a product, such as a car, but selling customer service, a lifestyle, convenience, and so much more. If we take the example of airline industry, it also provides another clear example of this phenomenon.

Where airlines once had large tangible inventories of aircraft on their books, they now lease the equipment, changing the nature of the business to one built on intangible assets – landing rights, booking systems, customer service, and brand. Unfortunately, knowledge itself cannot be “managed. ” But knowledge that is captured and converted into an asset (tangible or intangible) is indeed a commodity one can count on, literally, to improve the performance of the company and help generate profits.

No company can own either of the critical assets, neither the employees nor the customers. The value they provide to the company is only temporary and cannot be considered a measurable asset unless it is captured and converted into something the company can own – any new knowledge or skill that can be reused or applied in other areas, be it a new learning process or a new operating policy. There is a three grid system in any organization that can be measured as intangible assets. They are Customers, People and organization. Customers People Organization

Adopted from: www. celemi. com – 2 – – 3 – However, there are also factors that may be revised during the years, such as certain investments and initiatives we need to focus on as they are implemented and developed. For example, the development of our IT capabilities, which at one time was a key measure when establishing new offices, is now monitored in relation to other investments in R&D and marketing. In the future, we expect other factors will periodically be measured to give an accurate assessment of our intangibles as the business evolves.

Before any company starts measuring their intangible assets, everyone has to be helped to understand what their intangible assets are, and what impact they have on the performance of the company. With this knowledge of the “big picture,” employees can begin to see how individual performance affects organizational performance. For example, the managers understand the importance of assigning a new employee to a competence-enhancing client rather than an image-enhancing client. In any case, the companies should use caution before jumping in and measuring the intangible assets.

First, there must be a shared understanding internally of what the intangible assets are and what they mean to the overall performance of the company. With this knowledge, people are able to interpret the information and make effective decisions in line with the strategic plan. At the same time, they are developing their own extraordinary business sense – an essential key to how companies and employees can face challenges as an innovator in a global environment. Reasons of initiating Intangible asset measurement The pressure for more disclosure is already significant.

A growing number of academics, consultants, and regulators see the lack of information on intangible assets as a major deficiency in the GAAP regime. And this has been one of the most important reasons of initiating the measurement of intangible assets in the balance sheet. Leading companies in India are actively seeking ways of leveraging their “human capital” to develop a strategic advantage. They are moving from a departmental focus on human resources to a far more strategic and expansive focus on human capital management.

Roles and responsibilities are in ever-changing as companies explore new ways of building and leveraging talent. But Human Capital Assessment/Management is not limited to the enterprise itself. This new perspective also draws on the networks of talent that lie beyond immediate corporate boundaries. It is a key element of the ongoing drive toward “collaborative commerce” or “enterprise relationship management. ” – 4 – The payoff by using this method promises to be quite powerful.

Watson Wyatt, a management consulting firm that has developed a Human Capital Index based on 30 key indices of effective human capital management, has observed that a significant improvement among the 400 publicly traded companies it studied was associated with a 30 percent increase in market value. Watson Wyatt monitored five key dimensions of effective HCM: recruiting excellence; clear rewards and accountability; a collegial and flexible workplace; communications integrity; and prudent use of resources. Companies that demonstrated the highest ratings on the index generated returns of 103 percent over five years.

This proves that Human accountability is certainly important. But the question arises of which department would be responsible for it. This is still a challenge that cannot be delegated to any person or department; in fact it becomes the responsibility of everyone in the organization. While HR has taken its share of criticism for not being business-focused, it’s reasonable to assume that HR professionals generally have not been incentivized or encouraged by top leadership to play the strategic role that is now being sought. It’s a matter of organizational design.

It still remains an enigma about whether the top level executives or lower level executives would be responsible for the accounting of the Human talent in the organization. Measuring intellectual assets These are some general techniques that are used to value intangible assets, specifically Human Valuation. The techniques change from company to company related to its importance in the functions. 1. Balanced scorecard. Supplements traditional financial measures with three additional perspectives — customers, internal business processes, and learning/growth.

It was originated with a couple of Harvard Business School professors. 2. Competency models. By observing and classifying the behaviors of “successful” employees (“competency models”) and calculating the market value of their output, it’s possible to assign a dollar value to the intellectual capital they create and use in their work. 3. Benchmarking. Involves identifying companies that are recognized leaders in leveraging their intellectual assets, determining how well they score on relevant criteria, and then comparing your own company’s performance against that of the – 5 – leaders.

Example of a relevant criterion: leaders systematically identify knowledge gaps and use well-defined processes to close them. 4. Business worth. This approach centers on three questions. What would happen if the information we now use disappeared altogether? What would happen if we doubled the amount of key information available? How does the value of this information change after a day, a week, a year? Evaluation focuses on the cost of missing or underutilizing a business opportunity, avoiding or minimizing a threat. 5. “Calculated intangible value. “

Compares a company’s return on assets (ROA) with a published average ROA for the industry. Brand valuation techniques that are usually in use by the Indian companies are as follows. A number of authors and consulting firms have proposed different methods for brand valuation. 1. The market value of the company’s share 2. The difference between the market value and book value of the company’s shares (market value added) other firms quantify the brand’s value as the difference between the shares’ market value and adjusted book value or adjusted net worth (this difference is called goodwill). . The difference between the market value and book value of the company’s shares minus the management teams managerial expertise (intellectual capital) 4. the brand replacement value a. Present value of the historic investment in marketing and promotions b. Estimation of an advertising investment required to achieve the present level of brand recognition 5. the difference between the value of the branded company and that of another similar company that sold unbranded products (generic products or private labels) 6.

The present value of the company’s free cash flow minus the assets employed multiplied by required return. – 6 – ROLTA INDIA PVT LTD Rolta India limited is an Indian company operating in India and overseas. It provides software/information technology based engineering and geospatial solutions and services to customers across the world and has executed projects in more than 35 countries. Rolta is headquartered in Mumbai and operates through a network of twelve regional/branch offices in India and seven subsidiaries located in USA, Canada, UK, The Netherlands, Germany, Saudi Arabia and UAE.

It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Rolta is India’s leading provider of GIS/GeoEngineering solutions and services and one of the major AM/FM/GIS photogrammetry service providers in the world for segments such as Defense, Environment, Electric, Telecom, Gas, Emergency Services, Municipalities and Airports. The company’s customer base for GIS projects is spread across 17 countries with multi million dollar projects executed in various parts of the world.

Rolta is also leading provider of plant design automation solutions and services in India and one of the major plant information management services providers worldwide. The company’s customer base for such business is spread across 22 countries with over 500 projects executed in various parts of the world. To move up the value chain in the engineering domain, the company has established a joint venture with Stone & Webster Inc. , USA, namely SWRL- Stone & Webster Rolta Limited. SWRL has access to Stone & Webster’s proprietary technology.

This joint venture provides high quality engineering services worldwide and undertakes selective refinery, petrochemicals and power projects in India. The company provides eSecurity implementation services, rapid application development and software testing services to its customers worldwide. In on-going partnership with CA’s, the company has executed over 350 projects globally in 18 countries. Rolta globally has around 2500 employees. Nearly 75% of the company’s workforce has engineering qualifications, including significant umbers with master’s degrees or doctorates and Rolta ensures constant ongoing training to its professionals. The annual IDC-DQ best Employers Survey has consistently ranked the company as one of the top employers in the IT industry in India. Rolta quality standards are benchmarked to world class levels, with top quality certifications such as ISO 9001:2000, BS 7799, and SEI CMM level 5. The British Standards Institution (BSI) has awarded Rolta the BS15000 certification for its entire range of IT service management processes.

This unique accreditation has been bestowed on less than 25 companies globally. Measuring the intangibles – 7 – A company’s balance sheet discloses the financial position or rather health of the company. The financial position of an enterprise is influenced by the economic resources, financial structure, liquidity, solvency and its capacity to adapt to changes in the environment. However, it is becoming increasingly clear that intangible assets have a significant role in defining the growth of a company.

So often, the search for the added value invariably leads us to calculating and evaluating the intangible assets of the business. A Concept of Economic Value Added (EVA) Economic Value Added (EVA) is the financial performance measure that aims to capture the true economic profit of an enterprise. EVA is developed to be a measure more directly linked to creation shareholder wealth over time. Hence, it focuses on maximizing the shareholders wealth and helps company management to create value for shareholders. EVA refers to the net operating profits of the company which is opportunity cost.

EVA is calculated as Net operating Profit after tax (NOPAT) – (Capital*Cost of Capital) Generally, all intangible assets are being measured in terms of economic value added by those particular intangible assets. Brand Value – an important intangible asset Brands are more than just a name, a trademark for a product or a service mark for a service. A brand is a complex concept that creates organizational value and performs number of important functions for every enterprise. Brands and their combined Brand equity constitute a major economic force within the entire global economy, delivering market place value, shareholder ealth, livelihood, prosperity, and culture. Successful brands are recognized as rare and valuable assets that must be exploited carefully, with wise and knowledgeable management that retains their financial value, their economic power and their social significance. A brand is a very special asset and in many businesses it is the most important asset. This is due to the far reaching economic impact that brands have on enterprise. Brands usually influence the choice of customers, employee’s, investors and government authorities.

In a world of abundant choices such influence is crucial for commercial success and creation of shareholder value. Brands have also demonstrated a unique durability and sustained competitive advantage unmatched by any other corporate asset. Brand is an intangible asset and there are several methodologies suggested and prevalent for valuing brands. Some of these methods are cost, market value, economic use and royalty relief. Rolta utilizes “Economic Use” model. This model is one of the standard methodologies in brand valuation by companies in the software industry. 8 – This method is basically a combination of market factors and financial parameters to arrive at the value of the brand. It uses Brand Strength Model which arrives at a brand strength score based on various market parameters. This score is multiplied by the net brand earnings to estimate the brand value. The Brand strength Model is used to determine the value of a brand based on the assumption that a strong brand is more reliable for future earnings with lesser risk. Rolta has used the following method to calculate the brand valuation. Table:1 Calculation of Brand Value of Rolta India Pvt.

LtdItem No. Particulars 2004-05 2003-04 2002-03 1 Profit Before Interest and Taxes 1,226 1,014 1,504 2 Less – Non Brand Income 103 88 57 3 Adjusted PBIT (1-2)=3 1,123 926 1,447 4 Profit for the brand and associated intangibles 1,123 926 1,447 5 Average capital employed 5,723 6,200 5,410 6 Remuneration to Capital % 5 % 7 Remuneration to capital 289 8 Profit attributable to Brand and Associated intangibles (4 – 7) = 8 834 9 Income Tax 305 10 Profit after tax attributable to Brand and associated intangibles 529 11 Brand Multiple Applied 15. 15 12 Brand Value 8,011

Adoration of Jenna Fox

Would you save someone who is very close to you even if it is illegal? In The Adoration of Jenna Fox, by Mary E. Pearson, Jenna gets into a horrific accident. In an accident so severe as this one, most people would have been killed or crippled for the rest of their lives. Jenna’s parents, Matthew and Clair Fox, take the choice to save her. They basically remade Jenna into a new one. This was dangerous and illegal but they thought it was the right decision. I also very strongly think that saving Jenna was the best decision for Jenna’s parents to make.

Jenna Fox was in a coma while her parents were reconstructing her into almost a whole new Jenna. It was an illegal procedure but if it weren’t done, Jenna would most likely have died. Any parents would have made this same Calzone 2 decision for their own child, even it was legal or not. They only gave made Jenna 10% of her real self but this is better than nothing. She could have died from the accident and her parents decided to save her illegally instead of her dying. This was the best decision for Matthew and Clair Fox to make for their daughter. After the surgery Jenna didn’t have much of her memory at all.

People think that this is bad because Jenna lost nearly all of her memory. I think it was good because it gave Jenna the opportunity to find out who she actually was. It also allowed her to realize she no longer wants to only please others. This was also a very big advancement for science in the future. Without Jenna’s parents trying this and successfully completing it this may not have ever been done. They basically recreated a human using biogel. This has never been done before until Jenna. They took part of her brain and stored it in a hard drive. They then took it Calzone 3 and put it as a microchip and inserted it into her head.

This could lead to many possibilities in the future of science. They can almost program humans to do whatever they want. It could possibly lead to the perfect super race, or the dominant destructive super race of humans, depending on whose hands it gets into. The complete reconstruction of the human race could make it so people will live forever. This could totally change the world. People can program other people to do jobs for them, almost like slave robots. If it does not work where people will live forever, it will surely mean they will live a lot longer than the average human today.

This could be a big government military issue. If a leader produces an almost robot like army, he could have the most powerful force in the world. The leader could make humans with no fear and all the qualities of a perfect soldier, and possibly take over the world. This could be a very good thing for civilization or the total opposite. Calzone 4 In conclusion, it was definitely the best decision for Jenna Fox’s parents to make for her. It could cause a great advancement in the future of science too. People can live almost forever and have no problems. This could possibly cause the perfect world.

The Mind and Life of Fitzgerald and the Great Gatsby

Karlyn Steadman Mrs. Shaw Jr/Sr Honors English 8 May 2009 The Mind and life of Fitzgerald and the Great Gatsby: A Psychoanalytical Criticism Like many writers today F. Scott Fitzgerald either consciously or unconsciously wrote about himself in the book known as The Great Gatsby. Many of the books characters such as Daisy, Nick and even Gatsby himself show characteristics similar to people in Fitzgerald’s life and also Fitzgerald himself. Nick and Gatsby show lifestyles and desires of Fitzgerald’s, when Daisy and Daisy’s daughter show the actions and the thoughts of Fitzgerald’s own beloved wife and Daughter.

In this text it is clearly seen how Fitzgerald’s life is shown and stated in his book, The Great Gatsby. In Fitzgerald’s life there were many different influences for his lifestyle and his literature. In a biography title A Brief Life of Fitzgerald they say “the dominant Influences on F. Scott Fitzgerald were aspiration literature, Princeton, Zelda Sayre, Fitzgerald and alcohol” (Bruccoli pg1). In Fitzgerald’s when attending Princeton he met Father Sigourney who helped push him into his ambitions for personal distinction and achievement. Fitzgerald used this and wrote many books and article.

So in writing the Great Gatsby, He even stated in the beginning of the book how family and the representation of a father is so important. In the very first chapter of the book it states “In my younger more vulnerable years my father gave me some advice” (Fitzgerald pg 5). In the book we also see Nick, a party man and a light drinker show signs of being influenced by the same thing as Fitzgerald. Nick loved being on the richer side, so he went where he knew the money was, bond selling on the west egg (Fitzgerald pg 7). Fitzgerald was also easily influenced by money and partying and drinking also.

Fitzgerald lived a life of high style parties drinking and writing for the money. Even Zelda his wife, wouldn’t marry him because he then didn’t have enough money (Bruccoli Pg1). So influences always are present in the writer himself and his writings also. In 1918 Fitzgerald was still in the army, and was assigned to Camp Sheridan, that is where he met his wife Zelda Sayre. You can see that in The Great Gatsby because, Jay Gats meets Daisy right before he leaves for the war. He then falls in love with at the time, her and all of a sudden she believes she’s in love with him.

When you keep reading the book you then find that Gatsby only falls in love with the thought and the life style that he wanted, and Daisy only fell in love with his money. Well if you read about the biography of Fitzgerald you will see that when he had no money Zelda would not marry him. That then makes it seem that she was only falling in love with his money, just like Daisy. Zelda, after spending a near 11-13 years in different mental hospitals and extended the extent of the bad relationship that her and Fitzgerald had, gave birth to their daughter Scottie (Buccoli pg 3).

Daisy also had a daughter during a non stable relationship with her husband also. While Zelda was in the mental hospitals Fitzgerald then ran around with other women (Portway). Now even though Daisy was not admitted into a mental hospital her husband, that character Tom had an affair with a women just as Fitzgerald did, And as Tom stated in chapter two to Nick “I want you to meet my girl” (Fitzgerald pg 28). In this stating his love and possessiveness of Myrtle, the women he was having the affair with.

Now it is unknown that Fitzgerald had a true possessive relationship with a mistress, but if there is any hints in his writing that is where it would be. In Fitzgerald’s life, he was highly involved in the life style of money. He was born into money, and lived as a spoiled kid. So it’s only natural for him to write about the pros and cons of that in his book. In the first chapter, you can see that Nick is also born in the same situation, but he can never live the life of a common person because of it. And that is also how Fitzgerald was also. Daisy in the Great Gatsby was born into amazing, wealth.

That being the only reason Jay Gats fell in love with her. She lived the life of money and wealth, and that is how Zelda was raised also. She was then raised in a very rich family, and not only did Fitzgerald think she was the most beautiful women alive, calling her the golden girl (as Gatsby called Daisy in the book) but also married into a wealthy family. As Fitzgerald was writing this, the envy of his writing is noticeable in the writing of the love of Gatsby and Daisy, as in his personal life with Zelda In the Great Gatsby, there are many parties being held.

That is even where Nick had met Gatsby. In the book Gatsby would throw elaborate parties so he could attract the attention of Daisy. Well in Fitzgerald’s life he went to multiple parties also. He and Zelda were always the main invites for every party around, till they drank their welcome away from everyone. Now Fitzgerald did not attend parties to attract Zelda, it still shows how his life is a direct and indirect influence on the plots, themes and settings of his writings. Now in this book there is a lot of originality and also imagination in the writings of this book.

But also with all of Fitzgerald’s life situations such as the problems with his wife, and the many good and bad influences, made a huge impact on his book. In reading so, Fitzgerald’s book can be seen as a psychological reading of his life. And Even if he does say not to read it that way, it seems to be the main eye catcher of the book. Works Cited “A Brief Life of Fitzgerald. ” University of South Carolina. 08 May 2009 . Fitzgerald, F. Scott. Great Gatsby. New York: Scribner Paperback Fiction, 1995. F. Scott Fitzgerald. Dir. Bob Portway. dvd. BBC Worldwide Television, 2004. Film.

Dabhol Power Project

Stakeholders: Identify all the major stakeholders in the DABHOL power project. What are the intended benefits and costs of this project for the stake holders? Analyze the roles, responsibilities and reward structure of the stake holders. Based on the case study do you foresee a need to change the reward structure? Enron, Bechtel Enterprises, and General Electric—through offshore subsidiaries—formed Dabhol Power Company to build the first phase of a major power plant in Maharastra state in India.

Later, part of the equity was sold to the Maharastra State Electricity Board. Enron is also a stakeholder as fuel supplier and as the operator of the plant. Bechtel’s construction arm has engineering, procurement, and construction stakes; General Electric is a major equipment supplier; and the Maharastra State Electricity Board is the electricity purchaser. There are also other major sponsors of IPPs, such as AES Corporation, whose sole business is developing, owning, and operating electric power facilities.

Moreover, the Asian Develop- In India’s Dabhol project, for example, the owners are Enron, Bechtel, and GE Capital. Shareholding Pattern [pic] Investment by Stake Holders | | | |Foreign lenders (ABN AMRO, Standard Chartered, BNP Paribas, Calyon, CSFB, etc. |USD 325 million | |Domestic lenders (the largest being IDBI, ICICI, SBI, Canara Bank and IFCI) |Rs. 62 billion | |Export Credit Agencies (JBIC, US EXIM, Belgium OND) |USD 480 million | |Overseas Private Investment Company (OPIC), USA |USD 250 million | Counter guarantee by Govt. of INDIA Ownership stake Stake Holder |% stake | |Enron (indirectly through a series of shell companies) |65% | |GE (indirectly through a series of shell companies) |10% | |Bechtel (indirectly through a series of shell companies) |10% | |Maharashtra State Electricity Board (MSEB) |15% | Responsibilities & Rewards Enron ? Phase 1 • Construction of a 695MW gas-fired power station to generate electricity constantly at Dabhol, Guhagar taluka, Ratnagiri district, Maharashtra scheduled to commence production in December 1997. • Capital cost- $920 million. ? Phase 2 • Expand the capacity of the plant to 2015MW and involved in the construction of a 1320MW gas-fired plant, re-gasification facility, and an LG carrier as well as corresponding port facilities including a fuel jetty, navigation channel, and breakwater.

It was scheduled for commissioning at the end of 2001. • Switch the entire plant to LNG for fuel upon the completion of Phase II. • Capital Cost – $1. 9 billion ? Renegotiated deal • Enron cut the price of the power by over 20 percent, cut total capital costs to $2. 5 billion and increased output to 2184MW. • Enron suggested switching from distillate fuel to naphtha or LNG from domestic suppliers. • Devolving of the re-gasification plant into a separate venture. • Enron offered MSEB a 30% share in DPC. This would reduce the project’s annual cash outflow by US$ 150-170 million. ? Annual return promised to investors in the Qatar facility was 15%. Power purchase agreement assured DPC of an internal rate of return of 16% which as per industry observers was calculated as DPC’s real post-tax interest rate of return to be between 26% and 32%. MSEB ? Take-or-pay contract – MSEB to buy a minimum amount of electricity at a plant load factor of 90% as per 20yr contract irrespective of amount of energy used. ? MSEB to bear any increase in fuel price. ? MSEB to pay DPC $ 220 million per year. ? MSEB was required to build transmission lines from the power station to its power grid. ? MSEB to receive 30% profits of DPC annually. State Government ? Guarantee from the state government in the form of Letter of credit for credit support also waived sovereign immunity. Main recipient of electricity due to the paucity of energy in the state. ? Provide land for construction of the power station, power, communications, water, and approach roads during construction. Central Government ? Central government provided counter-indemnities. ? Escrow account over some of MSEB payments. Oman Gas Company ? Entered into a contract with the DPC to supply gas. Business Plan viability and Execution: Identify and discuss the original business plan of this project. Given the data of this case, was the DABHOL power project a feasible and worthwhile business proposition? In view of the business plan, critically comment on the project execution strategy.

Dabhol Power Company was a unlimited liability special purpose company (SPC) incorporated to execute the project. The power project at Dabhol was one of the eight fast track power projects identified by GOI post the liberalization of the Indian economy. An MOU was signed between Enron and Maharashtra Govt in June 1992 which marked the beginning of the project. Salient Features of the project were as follows – |  |Phase 1 |Phase 2 | |Capacity |740 MW |2015MW | |Cost |USD 920 M |USD 1. B | |Fuel |Naphtha |LNG (Sourced from Qatar) | |Planned Completion |Dec-97 |End of 2001 | Right from the inception the project was criticized by masses and viewed to be highly in favour of Enron (Majority stake holder in DPC). Even the World Bank turned down Maharashtra govt’s loan application terming the project as “not economically viable”. Some of the critical objections were as follows – 1. The govt hurried in closing and the deal, and no other vendors were considered. 2. No EIA was carried out. 3. The project would produce too much power as compared to the state demands.

And given the poor transmission system between the regional grids this would imply much higher costs for the govt. 4. The MOU required the state to pay DPC at 90% load factor irrespective of the demand; this was highly in favour of DPC and virtually assured the company of zero business risk. 5. As per the MOU, the govt had agreed to pay DPC as per base load independent of the actual demand. This was heavily criticized as the state faced shortage of power only during peak hours. 6. The structure of payments did not confirm to earlier guidelines issued by the central govt. 7. Naphtha wasn’t a cheaper source of power as compared to the orthodox sources like fuel. 8. Sufficient audit measures were not assured, to regulate the cost of power. 1.

MSEB had guaranteed a minimum fuel purchase from the supplier (Enron had heavy investment in the company) but the supplier wasn’t bound to provide a minimum quantity of fuel; In addition to it, MSEB had agreed to bear any further increase in the fuel price! 2. All currency risk was taken by MSEB and not by DPC. All these guaranteed an extraordinary IRR of 26 to 32% (post tax) to DPC. Project Financing: Identify the possible sources of financing for a major infrastructure power project of this nature? Critically examine the financing options used by the DABHOL power project. What was the impact of the financing decision for the overall risk and success of this project? Explain, with rationale, what should have been done differently to finance this project?

The possible sources of financing for a major infrastructure project of this nature are: Combination of debt and equity: Debt could be raised through a syndicate loan or loans from commercial banks and financial institutions. Equity could be pooled in by the promoters/sponsors 1. Securitization of the receivables i. e. in this case, the proceeds from running the power plant 2. Subordinated debt or mezzanine debt (multi-tranched) 3. External commercial borrowings 4. Equity financing using QIBs, strategic investors, or private placements 5. Bridge financing for short term requirements Dabhol Power Project used the following financing structure for the 2 phases: Phase I |$ mn | |Phase II |$ mn | |Equity |276 | |Equity |414 | |Debt | | |Debt | | |Syndicate Loan (BankAm-ABN Amro Led) |150 | |Syndicate Loan – IDBI Led |333 | |US Exim |298 | |Syndicate Loan – Domestic & Offshore lenders |497 | |OPIC |100 | |OPIC |60 | |IDBI |98 | |Jexim |258 | |Debt/Equity Ratio |2. 4 | |Commercial Banks |175 | | | | |US Exim |90. 8 | | | | |Debt/Equity Ratio |1. 75 | As is evident, Dabhol Power Company raised a large amount of debt to finance the project and a large portion of it was also from the export credit corporations. Phase I had a D/E ratio of 2. 34, while Phase II had a D/E ratio of 1. 75. DPC depended solely on MSEB as a consumer.

If MSEB were to default on its payment, it would struggle to pay back its debt obligations. On the other hand, given the excruciating clauses in the PPA, it was very likely that MSEB would not be able to purchase power from the Dabhol Power Plant and sell it profitably. It would have to incur a loss and have the state & if required central governments provide cover. The alternative that Dabhol Power Company could have taken in terms of financing the project was to raise more equity from the sponsors or through the market (though this might have been relatively difficult given the long incubation period typical of these projects). They could also have opted for the securitization route.

This was, the interest expenditure on debt would have been manageable. Also, based on the revised terms, MSEB received a 30% stake in the company. The equity stake was a double-edged sword. While on the one hand, it gave MSEB an opportunity to partake in the profits; on the other hand, it also made it difficult for MSEB to negotiate, since it was the sole customer too – implying a conflict of interest. Lessons Learnt and exit strategy: What are the crucial lessons of the DABHOL power project for other strategic initiatives in India? How do you address the risk inherent in such enormous global projects? How do you immunize against such risks?

What other strategic, financial and regulatory initiatives would you recommend for such projects to succeed? Lessons The Enron Dabhol project has offered many lessons for any future strategic initiatives in India and it is imperative that the mistakes made in the DPC agreement must not be repeated. In order to avoid such situations from arising in the future, it is crucial to learn lessons from the shortcomings of the agreement. This will protect future stakeholders and provide benchmarks to examine other future agreements. 1. A surplus of power is as harmful as a shortage of power. Under certain circumstances, it may be cheaper to have no power than buy exorbitant unaffordable power.

It is crucial to study the tariff implications of any supply-demand matching exercise. 2. Competitive bidding procedures rather than MoUs and counter-guarantees are the most effective method of getting the best terms from investors. The PPAs may come in the way of merit order dispatch, which is the most cost-effective way of supplying electricity to meet demand. 3. The broader developmental implications of expansion must be kept in mind. The given sector must pursue the goal of universal access to affordable utility. A stress on self -reliance as a central developmental objective to avoid control being taken over by foreign forces can be essential at times. 4.

To protect against exchange rate volatility, the forex indexation of a given project costs must be avoided as far as possible. For instance, to protect against the impacts of international oil price rises, fuel policy must be based, ceteris paribus, on indigenous resources. 5. There must be not only competitive bidding in the process, but also transparency, accountability and participation. The right to information is crucial tool in the hands of people which they must exercise with the assistance of public-interest organizations. The DPC episode demonstrates that despite the presence of certain safeguards, the lack of transparency in the agreement inevitably resulted in its failure.

It also clearly reveals the extent of Government and investor indifference to consumer interests. Risks There is a high risk inherent in such enormous global projects. It could vary from political and economic risk to country and lending risks. Some of the risks involved would be: 1. Industry cycle and the prospects of growth of the industry over a longer period 2. Competitive positioning that would determine the market share, substitutes, variable costs of production etc 3. Regulation that would impact quickness and smoothness of decisions and actions and transparency in the process 4. Tariff structure and Government support 5. Repayment risk 6. Currency risk

To generalize, it can be said that the large-scale projects require massive capital investment with long completion times, and they carry political, economic, legal, regulatory and financial risk. A key issue becomes how to attract private investors willing to participate in projects given their complex and risky nature. Cases of corruption and political and economic risk in the developing country make investors hesitate. To mitigate these risks and fears, the Government must ensure that a clear investment policy, structured process flow, transparent mechanism is established which makes the investment environment conducive. Tools of project financing must be appropriately employed.

In addition, keeping in mind the learning from the past can go a long way on making the project successful. Recommendations The following recommendations will help future agreements to avoid the difficulties that have arisen in the Dabhol case: 1. Any potential problem in agreements should be thought about, planned for, and dealt with in the first set of negotiations, rather than rectified time and again later. 2. Transparency is the key to the successful implementation of any agreement. 3. Negotiating with investors is a task that needs an expert panel that can professionally handle a given situation and can ensure stakeholder representation 4. Investors have a legitimate right to maximize their gains. 5.

Government must recognize that the best incentive to investors is credible policy and a transparent investment environment, not the unsustainable artificial incentives. 6. While protecting the interests of the electorate should be the government’s top priority, the consumers must not take it for granted that the Government will protect their interests. 7. Consumers need to become more organized and vocal and push for a greater role in policy decisions. 8. Investors must understand that unrealistic commercial agreements result in enhanced risks and are likely to fail. 9. Investors must understand and accept the commercial risks of the investments accompanied by high rates of return. ———————– Dabhol Power Project

Price Hike

Price hike:- Price rise send family budgets haywire NEW DELHI: Even as India’s economy is said to boom, millions of its citizens are groaning under soaring prices of vegetables and food grains and | | wish the government would do something about this, reports from across the country say. From Chandigarh in the north, to Ranchi in the east and from Bhopal in central India to Kerala in the south, a cacophony of voices has been raised against the relentless price rise, with the common man wondering when things would return to normal.

While the poor have been worst hit, the middle class is also feeling the pinch. Tomatoes are selling at up to Rs 50 a kilo, cauliflower at Rs 42 a kilo and chillies at Rs 70 a kilo, playing havoc with household budgets and forcing people to drastically scale down purchases of non-essential commodities. Finance Minister P Chidambaram, at a news briefing here Thursday, made a passing reference to rising prices of vegetables, even as he focused on steps the government was taking to control the prices of food grains.

But, even more than wheat, sugar and pulses, it is the rising prices of vegetables that have hit the common man the hardest. The national capital is no exception to the rising trend, with tomatoes costing over Rs 40 per kilo against Rs 15 a couple of weeks ago, cauliflower at over Rs 42 per kilo and okra at over Rs 22. Among pulses, moong dal is selling at Rs 60-70, an increase Rs 3-13 against a week ago. “For the past two weeks the prices of vegetables are affecting our budget. Looking at the high tomato price, we have curbed its use,” said housewife Romi Dash. Earlier we used to consume over three kg of tomatoes every week, but for the last two weeks we are managing just one-and-a-half kilo,” Dash added. Traders said that while un-seasonal rain and a severe heat wave had affected production, the hike in fuel prices was also responsible for the rising prices. “Low production coupled with high transportation costs due to the fuel price hike is the main reason for soaring prices,” said Praveen Khandelwal, secretary general of Confederation of All India Traders (CAIT). Tomato prices have touched a new high of Rs 50 a kilo in Chandigarh. The government at the centre has failed to check the price hike. After the fuel prices were raised, we now have to face the burden of increased prices of all commodities. Is the government sleeping? ” complained housewife Anjana Thakur. Raghav Puri, an executive in a private firm, had a novel way out. “If the government cannot control the price hike, let them bring a law that binds all employers – whether government or private sector – to increase salaries by a corresponding percentage so that people do not suffer,” he maintained. Even the retailers have begun to feel the pinch. I have observed over the last few days that most customers have been cutting down on purchases. They are not even buying bread and milk as regularly as before,” said grocery shop owner Satya Prakash. “With the local crop sold out, tomatoes are being imported from Karnataka resulting in a sharp rise in its price due to the increased transportation cost,” said vegetable vendor Ashfaq. “Papa has stopped bringing fruits because they are too costly,” complained school-going Hani Saxena. Prices of vegetables have more than doubled in Jharkhand, forcing most housewives to drastically cut down on vegetables in the daily menu. The heavy rains in the first week of June destroyed vegetables in the field. The monsoon is generally expected in the second or third week of June and farmers harvest the vegetables by June 15,” said Vishal, a horticulturist. “This year, farmers did not get time to harvest the vegetables from the field and put them in cold storage. ” The situation is critical in Kerala, which is almost fully dependant on neighbouring states like Tamil Nadu, Karnataka and Andhra Pradesh for supply of food items, including vegetables. Ever since the assembly elections got over (in May), the price of food items have been going up from 10 per cent to 75 per cent,” said Rajendran Nair, manager of the Kerala State Civil Supplies Corporation that imports food items and acts as the second line of the public distribution system. Price of chillies has shot up from Rs 40 to Rs 70, while the price of pulses has shot up by 25 per cent and that of rice by 10 per cent. Food inflation jumps to 15. 58% as potato prices soar Food inflation shot up to 15. 58 per cent for the second week of November on he back of potato prices, which have more than doubled in the past one year. Other essential items like pulses and onion rose by more than 25 per cent in the wholesale market, government data on inflation for week ended November 14 showed. “Food inflation is incredibly high… The drought has aggravated the situation and I expect the wholesale price- based inflation to rise to around 7 per cent by March next year,” said HDFC Bank economist Jyotinder Kaur. With inflationary pressure building up, the RBI in its next policy review may take steps to check easy money. It is likely that RBI in its January policy might go for monetary tightening measures and raise Cash Reserve Ratio (CRR) or policy rates,” Kaur said. According to the inflation data, potato prices rose by 111 per cent, pulses by 35 per cent and onion by 27 per cent in the one-year period ending November 14. Staple items like wheat and rice rose by 12 per cent each during the period. Vegetable too continued to stalk consumers registering a 12 per cent rise during the same period. However, among fuels petrol prices fell by 12 per cent, cooking gas by 7 per cent and diesel by 6 per cent.

Food inflation for the week ended November 14 was higher significantly even when compared on weekly basis. Axis Bank Economist Saugata Bhattacharya said the nature of persistence of higher food prices is worrying. “I expect wholesale price inflation to rise between 7 and 8 per cent by March-end,” he said. Among other items urad and poultry chicken prices rose by 15 per cent each, eggs by 8 per cent, moong by 6 per cent, arhar by 5 per cent and fruits & vegetables by 3 per cent. Led by costlier food prices, wholesale inflation rose to 1. 34 per cent in October from 0. 50 per cent in the previous month.

Inflation had remained in the negative for 13 straight months before trudging into positive in the first week of September at 0. 12 per cent. Among non-food articles, raw silk rose by 3 per cent and fodder and groundnut seed by 2 per cent each. Barley, however, fell by 2 per cent and tobacco by 3 per cent. Fuel index, on the other hand, remained unchanged at the previous week’s level. The primary articles index rose by 1. 2 per cent on weekly basis and 11. 04 per cent on annual basis. Food inflation shot up to 15. 58 per cent for the second week of November on the back of potato prices, which have more than doubled in the past one year.

Other essential items like pulses and onion rose by more than 25 per cent in the wholesale market, government data on inflation for week ended November 14 showed. “Food inflation is incredibly high… The drought has aggravated the situation and I expect the wholesale price- based inflation to rise to around 7 per cent by March next year,” said HDFC Bank economist Jyotinder Kaur. With inflationary pressure building up, the RBI in its next policy review may take steps to check easy money. “It is likely that RBI in its January policy might go for monetary tightening measures and raise Cash Reserve

Ratio (CRR) or policy rates,” Kaur said. According to the inflation data, potato prices rose by 111 per cent, pulses by 35 per cent and onion by 27 per cent in the one-year period ending November 14. Staple items like wheat and rice rose by 12 per cent each during the period. Vegetable too continued to stalk consumers registering a 12 per cent rise during the same period. However, among fuels petrol prices fell by 12 per cent, cooking gas by 7 per cent and diesel by 6 per cent. Food inflation for the week ended November 14 was higher significantly even when compared on weekly basis.

Axis Bank Economist Saugata Bhattacharya said the nature of persistence of higher food prices is worrying. “I expect wholesale price inflation to rise between 7 and 8 per cent by March-end,” he said. Among other items urad and poultry chicken prices rose by 15 per cent each, eggs by 8 per cent, moong by 6 per cent, arhar by 5 per cent and fruits & vegetables by 3 per cent. Led by costlier food prices, wholesale inflation rose to 1. 34 per cent in October from 0. 50 per cent in the previous month. Inflation had remained in the negative for 13 straight months before trudging into positive in the first week of September at 0. 2 per cent. Among non-food articles, raw silk rose by 3 per cent and fodder and groundnut seed by 2 per cent each. Barley, however, fell by 2 per cent and tobacco by 3 per cent. Fuel index, on the other hand, remained unchanged at the previous week’s level. The primary articles index rose by 1. 2 per cent on weekly basis and 11. 04 per cent on annual basis. Centre puts ball in states’ court over rising food prices The Centre on Thursday put the onus on the states to bring down prices of essential commodities saying unless they take action against hoarding, it would be difficult to provide relief to people.

Agriculture Minister Sharad Pawar offered no immediate hope from inflation attributing soaring prices of potato and onion to bad monsoon and pest attack on crops in West Bengal. “I have written to the Chief Ministers that if the state government machinery is not alert, it will be difficult to provide relief to the people,” he said replying to a special discussion in the Lok Sabha on rising prices. Finance Minister Pranab Mukherjee too in his intervention earlier asked the state governments to activate the Public Distribution System and provide relief to people suffering from soaring prices. The states have to take action… it is the responsibility of the state governments to take action,” Pawar said, regretting that some states have not taken adequate action to check hoarding. With sugar prices touching unprecedented levels, the Minister especially wanted states, particularly Uttar Pradesh, to pay over Rs 200 per quintal to cane growers, as was being done in southern states. The food inflation, according to the latest data, soared to 15. 58 per cent for the week ended November 14, on back of rising prices of potato, onion

Organizational Design

Key Concepts of Organizational Design University of Phoenix Key Concepts of Organizational Design This paper will provide key concepts of organization design. It will describe the five best design choices and also will provide information regarding some common organizational structures. An organization will have to continuously look at the design and structure it uses to ensure that it is going to establish its goals and vision. Importance of Organizational Design Choices Organizational Design will allow an organization to improve itself.

With organizational design, employee satisfaction is improved, customer satisfaction is improved, financial performance is improved and a competitive edge is gained. In order for an organization to have innovative success the best design choices are hierarchy, integration, control, formalization, and authority. Hierarchy According to Jones (2004), “Hierarchy is the classification of people according to authority and rank” (p. 101). With a hierarchy, individuals at the top level have more authority and rank. Each level down form the highest rank is under the control of the higher rank.

A hierarchy provides an organization with structure. An organization can structure itself by vertical differentiation or horizontal differentiation. According to Jones (2004), “ Vertical differentiation is the way an organization designs its hierarchy of authority and creates reporting relationships to link organizational roles and subunits, horizontal differentiation is the way an organization groups organizational task into roles and roles into subunits” (p. 102). Employees are able to become more specialized with horizontal differentiation. Vertical differentiation allows for chain of authority.

It gives more control to the organization. Integration According to Jones (2004), “Integration is the process of coordinating various task, functions, and divisions so that they work together and not at cross-purposes “(p. 104). Integration allows for departments to work together. This strengthens the organization and improves communications within the organization. There are seven integration mechanisms that can be used as differentiation increases; they are the hierarchy of authority, direct contact, liaison role, task force, team, integration role and integrating department.

Hierarchy of Authority separates individuals by how much authority they have. Direct contact allows for managers and leaders to meet so that they may coordinate activities. When communications increases amongst different units, one or more managers must take on a liaison role. Task forces and teams are established to address issues and solve problems. Control According to Jones (2004), “Control is the ability to coordinate and motivate people to work in the organization’s interest (p. 99). Control allows for employees to be motivated and allows for coordination within the organization.

A great leader will have more ability to motivate and control his or her subordinates. Formalization According to Jones (2004), “Formalization is the use of written rules and procedures to standardize operations” (p. 112). Part of my organizations responsibilities is to follow written rules and procedures. Without them we would not be certified by the FAA to perform maintenance and without them we would not be able to meet the safety requirements and standards set by the FAA. With these types of procedures, like the military, there is no slack to stray from the written rules and procedures.

Authority According to Jones (2004), “Authority is the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources” (p. 99). Authority allows for each individual to clearly understand their roles and responsibilities, According to my classmate Kevin Bragg (2009), “where would the military be without authority” (discussion posting). Authority and control go hand and hand and when a person clearly understands his roles and responsibilities, control can be established. Organizational Structures

Organizational structures can be defined as the way or method through use of a hierarchy that a group, business, organization, people or objects collaborate to achieve success on One common goal (http://organizationalstructure. net). The type of organization structure used depends on the size of the organization and what the goals of the organization are. It includes what the organization is looking to accomplish. Most often, all organizations start out as a functional structure and will branch out into another structure or a combination of structures.

Functional Structure According to Jones (2004), “Functional structure is a design that groups people on the basis of their common expertise and experience or because they use the same resources” (p. 160). Functional structures have two advantages. Functional structures allow employees to learn from one another, they become more productive and are more specialized. Highly skilled employees can train new employees and they also can be promoted within the organization to supervisors and managers. By doing this, an organization is able to maintain its skills and abilities.

In a functional structure people are grouped together by their skills. They can supervise each other and have some control over each other’s behavior. Many disadvantages exist in a functional structure. They include control problems, communication problems, measurement problems, location problems, customer problems and strategic problems. Control problems exist because as an organization grows it is hard to keep control of the new activities that it faces due to the growth. Communication problems exist because of the separate groups that are created in a functional structure. Communication is lacking amongst the groups.

Measurement problems exist because in a functional structure, the organization does not have the capability to evaluate itself. Location problems can become a factor if the organization expands to other locations because of the way the functional structure is designed to group individuals together by expertise and experience. Customer problems become an issue because it is difficult to service the needs of new customers. Strategic problems exist because managers do not have the time to plan for the future, they are spending too much of their time trying to solve day to day problems. Multidivisional Structure

According to Jones (2004), “Multidivisional structure is a structure in which support functions are placed in self-contained divisions. Self-contained division is a division that has its own set of support functions and controls its own value-creation activities” (p. 170). A multidivisional structure can provide a large organization with many advantages. The advantages are increased organizational effectiveness, increased control, profitable growth, and internal labor market. Because there is a clear division of labor between corporate and divisional managers, organizational effectiveness is increased.

Because the corporate managers are responsible reviewing the performance of the divisional managers, increased control is gained. Because each division is its own profit center, corporate can decide what divisions will give the greatest return on its investments. Divisional managers are motivated because they have the opportunity to be promoted to corporate managers. Disadvantages of multidivisional structures include managing the corporate-divisional relationship, coordination problems between divisions, bureaucratic costs, and communication problems.

If the corporate-divisional structure is not managed on a continuous basis, the organization can fail. Because each division can be measured separately, divisions may begin to compete for resources and this competition may not allow them to work together. Multidivisional structures are expensive and it must be measured and evaluated to ensure the benefits outweigh the cost. Because the organization is centralized, communication will be a problem. Matrix Structure According to Jones (2004), “Matrix structure groups people and resources in two ways simultaneously: by function and by product “(p. 83). The advantages of a matrix structure are the use of a cross-functional team, it opens communication, maximizes its use of skilled professionals and it focuses on quality and is also able to keep cost down. The cross-functional team allows the entire organization to work together. Communication is improved because the organization is working together. The major disadvantage to a matrix structure is that it lacks the advantages of a bureaucratic structure. Conflict can exist because of the lack of authority in a matrix structure. Network Structure

According to Jones (2004), “Network structure is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy of authority” (p. 197). Network structures of usually complex because organizations form agreements with many suppliers and manufactures. They also outsource many activities. Advantages of a network structure include lowering production cost because an organization is able to utilize a network partner which reduces cost. A network structure is able to survive organically.

If the environment changes, the organization is able to respond quickly with new products, processes and services. A disadvantage to a network structure would be an organization that provided high-technical products or services because it would be very hard for the organization to outsource this work. My organization, Pratt & Whitney would be an example of an organization where a network structure provides a disadvantage. Due to the high-technical repairs my organization performs, many other organizations are unable or not certified to perform certain repairs.

We are limited to the work we out-source. Strategy, Structure, and Process in Organizations Organizational Strategy, Structure, and Process focuses on how an organization is able to adapt to their environment. An organization that has elements of being organic is more likely to be able to adapt to its environment. An organization needs to look at it strategy to ensure that it is effectively aligned with its environment. Organizational Design and Decision-Making Processes An organizational that as a well though out organizational design will have improved communications, productivity, and innovation.

Employees will work effectively. Organizational design allows for an organization to look at what it wants for results and to change its structure and processes to establish its goals. Long-term commitment is needed and you must constantly make design choices that have an impact on your organization. Conclusion While each structure has advantages and disadvantages, an organization must choose the structure that will provide them with the best operational design elements. An organization will need to continuously look to use decision making to improve and change its organizational design.

References Davila, T. , Epstein, M. , and Shelton, R. (2006). Making innovation work: How to manage it, measure it, and profit from it. Retrieved from the University of Phoenix eBook Collection. Jones, G. (2004). Organizational theory, design, and change. Retrieved from the University of Phoenix eBook Collection Miles, R. , and Snow, C. (2003). Organizational Strategy, Structure, and Process. Tucker, R. (2001). Innovation: The new core competency. Strategy & Leadership, Retrieved on November 24, 2009 from Emerald database.