Desiderata: Essential Facts of Life

Rashaunta Hunter Mrs. Cannon English IV- 1B 27 August 2009 â€Å"Essential Facts of Life† Written in the 20th century, â€Å"Desiderata† gives many different ways to live a positive life. The message of this poem explains’ how to get through many circumstances. The poem tells you how to become a better person. Once you read this poem, you will learn how to treat others. There are essential facts in this poem that helps you have a more joyful life. Avoiding loud and aggressive persons, comparing yourself with others, and being at peace with God, are statements from the poem â€Å"Desiderata† to encourage you to live a peaceful life.People shouldn’t associate themselves with negativity. If people desire to have more calm and peaceful lives, they should â€Å"avoid loud and aggressive persons they are vexations to the spirit. † I used to associate myself with people who were very loud and aggressive. Eventually I started acting just like them. O nce I started hanging out them, I would always be distracted and wouldn’t be focused on the things I really needed to be focused on. I would find myself being frustrated with every little thing and person.My grades were falling and I would always get suspended. When I decided to separate myself from all the negative people, I was more calm and relaxed. I was no longer frustrated. My grades rose back up. I even gained my respect back from my teachers. It is important to appreciate life. People shouldn’t always try to be better than others because â€Å"If you compare yourself with others, you may become vain and bitter. † Trying to compete with others will just make life more difficult.It’s possible to gain enemies by always comparing one’s self to another. When I was singing in the Gospel Company, I was a lead singer. There was a girl in my class who would always try to compete with my for a solo that was already given to me. She would compare her voice to mine. She would snap because I would always be recognized for a performance. She had a very talented voice. She ended up being very rude and bitter towards the class. I tried to talk to her but she would always brush me off.The class separated from her because she became vain and bitter. No matter what people imagine God to be, they shouldn’t have malice in their heart for God. Everyone faces obstacles in life, â€Å"Therefore be at peace with God, whatever you conceive him to be†. When I first my ACL, I was really hurt emotionally. My first doctor told me I couldn’t play basketball anymore. I wasn’t at peace with God because I felt as though he should have stopped this from happening to me. I gave up on all faith, hope, and belief.Coach Williams kept telling me that I shouldn’t blame God. She told me to keep praying. Coach sent me to another doctor. I had an ACL reconstruction. The doctor said I would be playing in six months. Once I foun d peace with God, everything began to come together for me. I wasn’t stressed or worried. Separating yourself from distractions and frustrations, coming together with each other instead of competing, and being at peace with God are essential facts from the poem â€Å"Desiderata† to give you a better look at life.People shouldn’t let others steal their joy. Everyone should enjoy life and everything it may bring. If everyone would just live, laugh, and love more, they would find themselves being happier. The world would be a more peaceful place if everyone lived by the essential facts of life. To find peace I one’s self, one must have peace with God. Always have faith and believe. The people of this world should come together as one no matter what race, religion, or ethnicity they are.

Comparative Paper: Beowulf and Batman Essay

A superhero is a fictional character who is noted for feats of courage and nobility, who usually has a colorful name and costume, a mastery of relevant skills, advanced equipment and/or extraordinary powers and abilities beyond those of normal human beings. More importantly, a superhero has a strong moral code, including a willingness to risk his own safety in the service of good without expectation of reward. Although superhero powers vary widely, the posession of superhuman strength, the ability to fly, and enhancements of the senses are all common.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These abovementioned characteristics of a superhero are evident in Beowulf, the main character in â€Å"the longest surviving poem in Old English†, which is also entitled Beowulf, by an unknown author (Online Reference Book for Medieval Studies, 2006). Beowulf showed signs of being a superhero in what Wikipedia has cited as his three main battles: First Battle: Grendel – When Beowulf, being the prince of a Germanic tribe from southern Sweden called the Geats, led his men to rescue the kingdom of Hrothgar of Denmark from Grendel, a â€Å"solitary fiend† (line 165), who has killed men and brought fear to all in Hrothgar’s charge. Beowulf tears Grendel’s arm from his body and Grendel runs home to die, which caused the Danes and the Swedes to rejoice. Second Battle: Grendel’s Mother – When Grendel’s mother attacks that same night Grendel was defeated, and took one man to avenge her son’s death, Beowulf, along with his men and the Danes, traveled to the lake where this monster-woman lives, but the hero dives into the water alone, eventually defeating the â€Å"towering mere-wife† (line 1519) only by using a magic sword he finds in her cache of treasure (lines 837-1650). Third Battle: the dragon – Beowulf returns home and eventually becomes king of his own people. One day, late in Beowulf’s life, a man steals a golden cup from a dragon’s lair. When the dragon sees that the cup has been stolen, it leaves its cave in a rage, burning up everything in sight. Beowulf and his warriors come to fight the dragon, but only one of the warriors, a brave young man named Wiglaf, stays to help Beowulf, because the rest are too afraid. Beowulf kills the dragon with Wiglaf’s help, but dies from the wounds he has received. The dragon’s treasure is taken from its lair and buried with Beowulf’s ashes.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   These adventures of Beuwolf are somehow being resurrected in today’s superheroes such as Batman, although both represent an entirely different literary traditions. The former is a 10th century Anglo-Saxon epic poem with a touch of Christianity while the latter is a product of what is called as popular culture – movies, shows or comics that usually has a mass appeal. The classic hero possesses strength, ethics; and, above all, fights evil. This model applied in the time of Beowulf still applies today, only slightly modified. As a result of such innovations as television and fashion magazines, society has come to value physical attractiveness and sexual prowess, as evident in the example of Batman. In addition, humility has become a desired quality in modern times, whereas self-confidence to the point of arrogance was a favorable attribute in the time of Beowulf.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Despite the differences, similarities between the Anglo-Saxon hero and modern day hero can be seen through the comparison of Beowulf and Batman. Beowulf and Batman both possess the heroic quality of strength. We have seen Beowulf’s feat in the three battles described above.   Batman, on the other hand, single-handedly fights gangs of criminals on numerous occasions in the movie â€Å"Batman,† showing not only muscular strength, but endurance, much like that of Beowulf. Batman echoes the heroic strength of Beowulf. Another heroic quality shared by Batman and Beowulf is their commitment to fighting evil. When a villain attacks innocent citizens, the hero is there to protect them and fight the attacker.   This is where the fighting of Good versus evil becomes the next major component to the stories of Beowulf and Batman. The Anglo-Saxons were religious people and had a strong belief in God. The hero must kill the villain â€Å"face to face† and never stab it in the back. These heroes represent the Good; they are usually honest, clean, upright respectable people – an archetype for what a model citizen should be. Both the stories tell a tale of Good fighting against Evil and then dying for the people. Both Batman and Beowulf wear this heroic responsibility to fight evil well. However, as opposed to Batman, Beowulf, whose main asset was his amazing hand strength, not much mention was made of his wily good looks or his incredible intelligence (Rollins, 2006). As Christianity spread throughout Europe, feudal cultures told stories that combined their warrior ethos with Christ’s example of personal sacrifice. Despite developing a global culture theoretically no longer quite as dependent on national conquest, the Western world still tends to envision our savior hero as â€Å"someone who kicks butt† (think of Neo in The Matrix) (Wandtke, 2005). Alongside this pervasive trend, however, an interesting countercurrent developed in the Renaissance and has reached its peak in recent years. This countercurrent suggests the hero who rights the wrongs of the world with force might actually be destructive to general cultural development (as one culture’s hero will often be another culture’s villain). Do our warrior heroes provide us with examples of the heights we can reach as Christians? Or do they operate with moral principles that work in opposition to the teachings of Jesus?   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Even though the roles have changed for the heroes throughout time their importance to the countries has not gotten smaller. These heroes’ jobs are also as equally important as the ones of Beowulf’s day because they play a large role in our society. Television, radio stations and comic books are a form of entertainment that allows people to be introduced to heroes and escape their problems and lives, and pretend that these heroes would transport them into a world solely their own, a world where the good triumphs over evil – even for a moment. For as long as there are harsh realities, there is always a room for make-believe. Worls Cited: Abrams, M.H. â€Å"Beowulf.† The Norton Anthology of English Literature. Retrieved 22 Apr   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2006, . â€Å"Beowulf.† Wikipedia, The Free Encyclopedia. 23 Apr 2006, 12:11 UTC. 23 Apr 2006, 20:48   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   . â€Å"Beowulf: Introduction.† Online Reference Books for Medieval Studies. 08 Aug 2003,    Wandtke, Terry. â€Å"From Beowulf to Batman: Classic Heroism in Contemporary Contexts   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (Or, Where’s My Jesus Action Figure?).† Imaginarium @ cornerstone festival. 30   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   June 2005,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   . Rollins, Roger B. â€Å"True Blue Revolutionaries or Tired Beowulf Reruns.† MegaEssays.com.   Ã‚  Ã‚  Ã‚  Ã‚   Retrieved 23 Apr 2006, .   

Human Resource Management Essay Example | Topics and Well Written Essays - 1500 words

Human Resource Management - Essay Example The paper tells that human resource management entails the acquisition, motivation and management of people resources within the organization. Human resource management is proactive and main functions include manpower planning, recruitment and selection, motivation, training and development, benefits administration, performance appraisal and counseling of employees. The primary responsibilities of the human resource manager are to develop thorough understanding of the corporate plans and policies, initiate and facilitate change within the department, act as internal change agent, facilitate team building, participate in overall corporate strategic formulation, diagnose training needs and develop training materials and methods, monitor employee performance and establish reward criteria within the organization. However, ineffective human resource management can lead to low employee morale and motivation, decreased employee productivity and high turnover levels within the organization. Ineffective human policies lead to unfair compensation and lack of training and development opportunities which lead to boredom of work. Ineffective human policies cannot identify the manpower requirements of the company such as the skill gaps. Such policies lead to increased accidents in the workplace and high training and recruitment costs. Such policies discourage team building and informal groups among the employees. Effective management of human resources will reduce the chances of employee grievances and conflicts with management hence minimal likelihood of business operations stoppage due to strike and union actions (Amos, Ristow, and Ristow 300). Case study 2 As the human resource of the company, I was tasked with improving the staff morale, enhance training and ensure compliance with the existing rules and regulations which govern employment and workplace environment. I interviewed all the 25 full time employees and analyzed and compiled their responses as follows. 1. 70 % of the employees indicated that they needed more training opportunities. a) 45 % of the 70% wanted further training on health and safety measures in the workplace. b) 30% of the 70% need training on modern communication technologies and computer application skills. c) 12% of the 70% need training on human relations and communication skills. 2. 90% of the employees indicated they were unsatisfied with the compensation packages like salaries offered by the company. 3. 60% percent felt that job tenure was not guaranteed even after satisfactory performance appraisals. 4. 40% of the respondents would like the company to offer insurance packages, transport allowance and counseling services a) 25% would like to have disability insurance. b) 39% would like the company to offer free transport services and transport allowances. c) 40% percent would like the company to offer pension services to employees d) 16% would like the company to establish recreational facilities, medical facilities and child care facilities within the company. 5. 75% indicated that they were uncomfortable with the performance appraisals. a) 37% indicated that immediate supervisors were not concerned with quality of services offered. b) 60% complained not to receive immediate feedbacks after their performance evaluations. c) 58% indicated that performance appra

To what extent is adult criminality a consequence of problems in the Essay

To what extent is adult criminality a consequence of problems in the family environment during an offender's childhood and ado - Essay Example The terms in these papers were also accurately defined. These papers are also well-written, with no grammar and spelling mistakes. The writing is well organized and supported by either inductive or deductive patterns of reasoning. The terminologies are also used effectively. High quality essays also manifest wide reading and research. The resources are well-selected, based on validity and reliability of research process and results. The information portrayed in this high quality research is based on supported facts and figures from independent researchers and government-released reports. Such data is also well-documented and properly supported by experts and academic scholars. The resources are also peer-reviewed and published in reputable journals or other creditable publications. These experts also portray clear and unbiased analysis based on a various range of perspectives. In contrast, the low quality essays are not well-supported by accurate facts and information. For the most p art, they are only opinions and unsupported conclusions by individuals who are not experts in the subject matter. The findings of the study are often simply presented with hardly any attempts at an analytical and comprehensive review. There are grammar and spelling mistakes which interfere with its reliability, as well as its validity as a scholarly paper. The conclusions attempted are also very much generalized; and no specific details or creditable sources are used to support such conclusions. I used the knowledge gained from critiquing the example essays to prepare and structure the essay by utilizing such knowledge to seek credible references for use in the paper. I also used the same data to weed out which references would not be scholarly and supportive of the paper in general. With the use of knowledge gained from the critique, I was able to conceptualize a logical and valid research with limited generalizations. In effect, the paper was properly written as a scholarly and ac ademic discussion based on logical and ethical standards of research. Moreover, the review process of the authors and references underwent a comprehensive assessment based on peer-review and publication in a reputed journal. The critique of the example essays enabled an impartial process of inquiry which then engendered the validity of the research essays. It allowed also a logical and well-argued research process to unfold, considering all pertinent facts and details in the practice as well as in the research methodology. Finally, the critique highlighted for me the importance of referencing as exhibited by the bibliographic pages. This also lent more credibility and validity to the entire research

Business Ethics Essay Example | Topics and Well Written Essays - 2000 words - 3

Business Ethics - Essay Example The origins of the Kantian theory are from the Principles of Morals and Legislation in the year 1863. According to Kantian theory, there should be an attempt to make the world a better place and then to pursue the greatest good for an entire mass. Utility is to generate favourable impacts on the intrinsic values like, pleasure, preferences, ideas and happiness. According to Kant, the ethical values are recognized and are essential for identifying the second test of universalizabilty because more than often values are recognized in contradictions (Dimitriou et al, 2011). The rational beings are recognized as the individuals with the potentiality of the defining motives which are universally acceptable and widely recognized. The Kantian theory has provided me with significant inputs which have acted as a catalyst in the improvisation of my existing behaviour and performance in the existing organization. It has helped me to understand the significant difference between morality assumpti ons and rational choices (George, 2011). There have been various instances in my life where the solutions have stemmed out of Kantianism theory and have offered powerful moral insights and also, have helped in the reduction of the moral disagreements (Holme, 2008). The conflicts arising out of difference of opinions were resolved due to Kantianism theory (Pollock, 2011).The conflicts arising between family members due to difference in personal opinions, were settled with the guidance of Kantianism theory. The conflicts triggered by moral disagreements arising out of personated choices have been solved with the help of the guiding perspective of Kantianism theory. This thesis is utilized to refute idealism theories and states that these values within the ethical systems are of much worth. The theory lays emphasis on the fact that most of the moral values and ethical standards practiced by the society are justifiable. The unethical conduct practices in the organization are due to the failure of implementation of the moral values and standards. The permanent values cannot be embedded into the systems and is found to provide fruitfulness to the ethical theories and systems. The only minuscule difference is that it identifies the difference between the precepts behind the ethical principles and standards. However, this theory has various loopholes and lacks to serve the purpose of a guide. It is possible that an individual can face such a situation in any organization and thus, the employees can monitor the ethical system themselves. Utilitarianism Theory The Utilitarianism theory was evolved by Jeremy Bentham and suggests that a movement should focus on the right action which would serve the benefits of the mass. An action is either right or wrong, but if the action serves the welfare of a majority of the people, then it is following the guided path of the Utilitarianism concept (Roff, 2013). It is a technique which determines the moral value of an action. It help s us in judging the possibility of effects of our actions from the past on that of our present (Roff, 2013). The basic intention of this theory helps to unfold the reasons behind the implementation of moral values and ethics in a society or company. It is a systematic process to justify the moral standards of

Preliminary Trial Balance of Wilma Wildcats Company Assignment - 1

Preliminary Trial Balance of Wilma Wildcats Company - Assignment Example The annual interest rate is 8%. 2. The Equipment was purchased prior to 2010. The company uses the straight-line method, assumed a $2,000 salvage value and an estimated useful life of 15 years. Record depreciation expense for 2010. 3. The company issued a $175,000 bond in a prior year at face value. The bond has a contract rate of 9% and pays interest annually on January 1st. Record the adjusting entry for the accrued interest expense on December 31st. 4. The company uses the allowance method to estimate its uncollectible accounts. The new Chief Financial Officer (CFO) decided to use the percent of receivables method and estimated that 10% of Accounts Receivables at December 31, 2010, will be uncollectible. Record the adjusting entry for bad debt expense for 2010. 6. Employees were last paid on December 24, 2010. Several employees worked through December 31st and wages due but not yet paid were $4,200. An adjusting entry needs to be recorded to reflect this liability. Use the space below for T-accounts (REQUIRED FOR GRADING). For each account in the journal entries, you will need to adjust the balance from the preliminary trial balance with the debit or credit from the journal entry. (only need to do T-accounts for those that change) Part 2: Using the trial balance below, complete the income statement and prepare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow.  

Personal Learning Profile Essay Example | Topics and Well Written Essays - 1000 words

Personal Learning Profile - Essay Example feel delighted with certain courses that have been helping me to acquire useful life skills that can be of much value to me in tackling day to day challenges. In order to know much about myself, I had to carry out a self assessment. This, I did by keeping a daily journal throughout the semester. I was decided to take such an initiative because it is a better way of recording every event, activity and incident that could help me to evaluate my strengths and weaknesses. Actually, I later realized that the keeping of this journal was a good idea for me because it enabled me to exactly know what kind of student I really am (Roberts, 2006). Even if the journal enabled me to prove some of the earlier beliefs I had about myself, it also gave me a platform to learn about different qualities that I never thought I possess. Such knowledge was a clear indication that before then, I had a different version of myself. The first view I had of myself before the evaluating the journal is that I have been a very hard working student. All along, I had been yearning to be an economist. So, by managing to enroll for this course, I knew that I had already achieved my goal. In my opinion, this success did not come by chance, but was purely based on my hard work. May be, if I was not an industrious student, I would not have made it to the higher level of learning. I was as well convinced of my hard work since I had been excelling in this course and Chartered Financial Analyst (CFA) that I have been studying. For a very long time, I have not been scoring dismal marks in my examinations. These are the reasons why I had assumed that I am a hardworking student. I would like to categorically state that the same thing was confirmed by my journal. After carefully and objectively evaluating my journal, I confirmed that I have actually been a hard working student. The daily records in my journal indicated that I have been spending a lot of time studying and working on the quizzes given by my

Bonnville Power Administration Coursework Example | Topics and Well Written Essays - 500 words

Bonnville Power Administration - Coursework Example These are paid positions with full benefits. Here is a chance to get firsthand experience in stationary engineering and get your skills tested. This also lays a concrete path for long term career growth and development in the field of stationary engineering. In the field of stationary engineering at BPA, jobs are available in Mechanical, Electrical, Civil Engineering, IT at varied levels. Entering as a trainee engineer, newcomer is eligible for consecutive promotions for two or three levels, once they complete six months intensive training successfully. Student Trainee (Electrical Engineering), GS-05: Work is regarding testing transmission lines and high-voltage phasing or working with a variety of equipment like transformers, power circuit breakers, and static capacitors. Besides above jobs in the key fields, BPA also offer jobs in the field of Information and Technology, Program Analyst, Contractor Specialist and many allied and related fields, which are important for effective execution of the various work

Mandatory Nurse-Patient ratios in Pennsylvania Essay

Mandatory Nurse-Patient ratios in Pennsylvania - Essay Example One-half of the nurse staffing committee members should be registered nurses currently delivering direct patient care and the rest of the members may be determined by the hospital administration (ARON, 2013). The committee is authorized by the house bill to consider matters such as competencies of the nurses and patients’ acuity. In addition to nurse-patient ratios, this bill also addresses several other concerns including intensity of care, staff skills mix, availability of support staff in the shift, and the physical environment. Michael and Page (2010) state that nurse staff shortage or understaffing has been a major issue leading to medical negligence, clinical errors, and poor quality healthcare (p.102). To illustrate, a study published in 2002 found that surgery patients in hospitals with high nurse-patient ratios are at 31% increased risk of mortality. Similarly, a report released by the Agency for Healthcare Research and Quality indicated that improvement in nurse-patient ratios can decrease rescue failures and hospital stays. A research work published in the American Journal of Public Health in 2005 (as cited in Conis, 2009) suggested that an improved nurse-patient ratio of 1:4 could save up to 72,000 lives a year. Long working schedules, inflexible work shifts, and work overload often force professional nurses to consider leaving the profession. A recent study by Okrent (2012) indicated that roughly 45% of the nurses planned to make major career changes over the next three years. It is dreadful to no te that a significant percent of the current nursing workforce considers professions outside nursing. This adverse situation justifies the need of implementing a nursing policy that would better regulate nurse staffing ratios in the country and thereby contribute to staff satisfaction. Statistical evidences suggest that hospitals incur huge nurse turnover

French Educational System Compared to the American System Essay Example for Free

French Educational System Compared to the American System Essay France and the United States have numerous striking differences and tastes in almost all cultural aspects. The French education system has been criticized globally by scholars and experts in various career fields for its failure to provide a flexible, all-round education. However, it has also received praise and recognition by the world at large for its significant contribution to the field of mathematics, with the revolution in banking in the late 20th century pioneered by French mathematicians. The United States education system, on the other hand, is increasingly receiving favor by international students for its provision of high class, market friendly education, despite the current criticism on the high cost of education. This paper compares the French and the American education systems. There are many differences, as well as similarities, in the French and the US education systems. One of the major aspects which have raised concern is on higher education. In both countries, higher education is given high priority, and in the US, for instance, the majority of adults are college educated. In France, higher education is also highly valued, with a person’s popularity and respect increasing as she or he advances in education. A significant difference in the higher education in both France and the US, however, is on the entrance process to university. In the French education system, before one can gain access to university studies, the final exam, the Baccalaureat, or the â€Å"Bac† is mandatory. The â€Å"Bac† is a rigorous school-leaving examination with no multiple choice questions and includes a written part and an oral part, with several subjects each. The â€Å"Bac† is highly valued in the nation so much that despite numerous criticisms from scholars globally to change the system and implement other selection methods, the nation has refused to change it. (Understandfrance. org, 2008) Despite the tough examination system, the French have no other university selection method. The nationwide â€Å"no selection† policy has raised controversy from scholars worldwide who find the method not sufficient for a thorough process. College selection in the US however, is very vigorous and students undergo numerous processes before gaining entrance to college. Selection is comprised of practices such as writing a personal statement, attending an interview, being involved in extra curricular activities among of course, the class ranking and the grades earned in high school courses taken. Recommendations too, by responsible persons are also considered before one can gain entrance into any higher institution of learning. A major reason which has made many international students prefer the higher education system in the United States over that in France in the recent past is the many facilities and services offered in US institutions. Issues such as overcrowding in lecture halls, for instance, are not experienced in majority of US institutions, although quite evident in most of the universities in France. Such prestige, however, comes at a cost. College tuition fees in the US can in no way be comparable to France, where education, interestingly, at all levels is almost free and only 26 percent of university students receive scholarships. (Understandfrance. org, 2008) Tuition fees is so high in the US, such that scholarships alone cannot cater for the students; the majority of US students receive either loans, grants or both from the government, so as to cater for their tuition fees. The government, in fact cannot sufficiently cater for the tuition needs of all the students, and private sources are increasingly becoming normal. Grants and loans are even not enough, and many students opt to sign up to study over the internet, in the many obviously questionable free online courses. Another striking difference in the education systems of both France and the United States is their curriculum. The French curriculum has been criticized globally for its failure to connect to the world market. Many demonstrations have been staged by French students, for decades and although there have been reforms; the reforms have not been good enough to cater for the current market demand. The US system, on the other hand, has diverse and flexible curricula, with a wide range of topics, from nuclear science to dance. As opposed to the French curricula, where extra curricular activities such as sports, musical groups and numerous clubs are not recognized in the curricula and where one can only have private classes for the same, in the US, such activities are given high priority. They can also be found in US institutions, both public and private. The flexibility of the US education system is what has made it the most preferred by international students worldwide, since they can have access to almost all interested areas of study. Unemployment, as a result is not as prevalent in the US as it is in France, with the recent demonstrations by French students to find solutions to the problem. The French are recognized as a literacy community, where education levels determine a person’s status. The more one advances in education, the more recognized she or he gets. This is a belief not common in the US. This general belief is what makes the education valued so greatly, with most French students spending most of their time in classroom related activities, allowing no room for other activities such as music and art related fields. Highly educated people in France in especially the globally viewed â€Å"tough† subjects such as mathematics, are given great respect, with the not very successful in education, despite their circumstances or other achievements, looked down upon and not recognized. In the United States, however, education levels are not given such respect and other issues such as healthcare are given more weight even politically. It is not surprising to note that the richest Americans are college dropouts, big names such as William Gates III. This notwithstanding, the education facilities in the United states are the best compared to other institutions worldwide. Despite critics arguing that French schools tend to make students theoretical and uncreative, French academic standards are high and discipline is strict. This is however not the case in the American education system, where the use of drugs is common especially in junior high and high schools. This problem has remained a major problem in the US for many years. (Hall, 1990, 99-102 144) Education, over the years, has played a very important role in the development of individuals and a nation. It is important to note that both the French and American education systems should be improved, in certain features, as aforementioned, such as eradicating the drug use in US schools, making the French system more market friendly and more relevant to the current market stage, and improving the overcrowded high education institutions. This move would in the long run, make both of the systems stronger, hence ensuring effectiveness in both; an important catalyst in the road to globalization. Works Cited: Hall M. R. (1990) Understanding Cultural Differences: Germans, French and Americans (Intercultural Press) Understandfrance. org (2008): Education in France. Retrieved December 2nd 2008 from: http://www. understandfrance. org/France/Education. html

Problems of the Credit Rating Agencies

Problems of the Credit Rating Agencies Introduction On July 18th, 2007, while referring to adjustable rate mortgages (ARM) (also known as subprime mortgages) bonds, an executive of the Fitchs residential mortgage group said We continue to be confident that AAA ratings reflect the high credit quality of those bonds. Since then, between 2008 and 2009, 140 US banks declared bankruptcy while the International Monetary Fund now estimates world banks global losses due to loans and credit derivatives to approximate $4.1 trillion. If the subprime crisis has been the crisis of credit, it has also been the crisis of credit rating. Credit Rating Agencies (CRAs) (namely the tree major ones: Fitch Ratings, Moodys Investors Service and Standard Poors) have been under a lot of criticism in the recent credit crisis. Indeed, not only have CRAs been accused of making errors of judgment in rating structured debt securities, but also of operating a biased business model in an oligopolistic market. As a matter of fact, bond issuers, government regulators and investors have now lost their blind faith in credit ratings and therefore feel the compelling need to change, reorganize and restructure the CRA current business model and industry. Even though CRAs cannot be considered the sole responsible agent for the credit crisis, they have encountered great irregularities and problems: How can they be fixed? What solutions should be implemented to prevent the next credit crisis from happening? How has the credit and CRA crisis affected the leveraged finance industry? To tackle this question, we will first analyze what criticisms credit rating agencies have been subject to and what problems have been identified in the recent years. By evaluating different solutions and suggesting necessary changes, we will then examine how the credit rating business model and market structure could be improved. Finally, as it directly relates to the credit market and CRAs, we will study the impact of the crisis on the leveraged finance industry, with a special focus on leverage buyouts, buyout debt financing and structured finance. Section 1: Current problems of the Credit Rating Agencies business model Though many other players, such as lenders, borrowers, regulators, issuers, and macro factors, can be associated with and blamed for the current credit crunch, Credit Rating Agencies (CRAs) have been accused of being the main actors behind the malfunctioning and mispricing of the credit markets. Not only have CRAs been blamed for misrating complex structured debt products[1] and other subprime mortgage related products, but also of operating a biased business model in an oligopolistic market. In this first section, we will summarize these three main accusations and analyze in detail the validity of each argument. Solid and pertinent recommendations can only be made if the true problems have been identified. By analysing Moodys financial statements, we can observe that between 2002 and 2006, Moodys profits nearly tripled because of the growth of structured products, accounting for more than 40% of its total revenues in 2006, and the higher margins charged for these products.   Given the revenues generated, one would expect that CRAs did control the rating of these products. Now, after the default rate on adjustable rate mortgages (ARMs) reached its peak during the crisis and collateralized debt obligations (CDOs) became worthless, CRAs defended themselves by explaining how sophisticated these products were and how hard it was to rate them. This leads us to question, did CRAs rate products they did not understand? Before the mortgage market collapse, analysts like John Paulson expressed incredulity at what appeared to be a complete mispricing of the structured debt products and began predicting that the market would crash: For me it was so obvious that these securities were completely mispriced and we were living in a casino. I think the other players that were involved in the business got caught up in the exuberance, [] in the competition to increase their underwriting volumes, [] to increase their fees. They were very focused on annual earnings, quarterly earnings and annual bonus pools and with the amount of the liquidity, everyone got caught up in what became a massive credit bubble. (Distressed Volatility 2009) Mark Zandi, an economist at Moodys, noted in a report on U.S. Macro Outlook published in May 2006, that household debt was at a record and a fifth of such debt was classified as subprime. Unfortunately, the economic forecasting division is separate from the ratings division of the corporation. But how could CRAs not foresee the crisis and the flaws of their valuation models? The model used to rate structured products has been criticized for two reasons. First, Moodys rating model for assessing CDOs is a statistical model reliant on historical patterns of default. The main assumption behind this model is that past data would remain relevant, even during a period in which the mortgage industry (and its related products) was undergoing drastic change. Second, the use of this model revealed a large failure of common sense (Lowenstein, Triple-A failure 2008)by rating agencies as very complex securities shouldnt have been rated as plain vanilla bonds, for which the model was designed. CRAs were checking their statistical model, but not the underlying assets. As a consequence, Moodys noted in April 2007 that the model was first introduced in 2002. Since then, the mortgage market has evolved considerably with the introduction of many new products and an expansion of risks associated with them (Mason 2007) and thus revised the model it used to evaluate subprime mortgages. Similarly, in a response letter to Roger Lowensteins Triple-A failure article, Vickie Tillman, Executive Vice President of SPs Rating Services claims that her companys rating model includes both historical data and informed assumptions to assess credit quality. This adjusted model doesnt seem to solve the accuracy problem. Deven Sharma, president of SP, admits [] historical data we used and the assumptions we made significantly underestimated the severity of what has actually occurred (Sharma 2008) Even though one can acknowledge the greater complexity of CDOs and the difficulty of accurately assessing the risk profile of these products, the CRAs defence doesnt seem justifiable given the source of wealth these structure products represents to them. One would expect that CRAs would only provide a service they understood. There is still plenty of room for improvement in their models. Research led by Skreta and Veldkamp (Skreta and Veldkamp 2009) suggests that the complexity of any given asset hasnt increased but rather that the more complex types of assets became more prevalent. Indeed, when combined with the phenomenon of rating shopping, where issuers shop from one CRA to another to pick the best rating possible, asset complexity can lead to rating inflation and biased judgment. As a consequence, failure to address potential sources of bias inherent in the business model of the ratings industry could generate future problems. This discussion leads us to the conflict of interest inherent in the issuer-pay model, the second main accusation in our analysis. The conflict of interest between CRAs and bond issuers has been identified as the main problem because it drives the entire CRA business model. This conflict of interest between rating agencies and the bond issuers from whom they receive fees undermines the CRAs ability to give an unbiased assessment of credit risk. There are two types of potential conflicts of interest inherent in the issuer-pay model that may arise from the activities of the CRAs. The first is that rating agencies may be enticed to give better ratings in order to continue receiving service fees. Since CRAs revenues come from issuers, this conflict can lead to an agency problem. The second potential conflict relates to the consulting services CRAs provide to help the issuer to better design products to meet their models different thresholds. In both cases, CRAs run the risk of the issuer going to a different rating agency, which leads to the phenomenon of ratings shopping. Up until the 1970s, the investor-pay business model of credit rating agencies was straightforward: investors bought a subscription to receive ratings. It was during the 1970s that the business model evolved into an issuer-initiated ratings system where the issuers of securities began paying to be rated. Free riding by investors, leading to a reduction in profits for credit rating firms, was the main reason for this transition. As White (White 2002)observes, this shift also coincided with the rise in popularity of the photocopying machine. Although the issuer-pay business model has been around for more than forty years now, concern over ratings bias only recently emerged. Indeed, the conflict of interest, amplified by the rise of complex structured financial products, calls into question the objectivity of ratings that are critical to the efficiency of the market. (Levitt, Conflicts and the Credit Crunch 2007) In response to these accusations, CRA executives have maintained that the issuer pay model is not contradictory to the efficiency of their business model. It seems that a firm cannot support both issuers and investors simultaneously. In fact, the Report of the Staff to the Senate Committee on Governmental Affairs during the Enron case[2] cited empirical evidence: The conflict appears to be particularly acute for large important issues such as [] Enron []. In these cases investors desperately need guidance from credit rating firms, but often do not get it because of pressure from issuers, [] and in some cases, SEC officials. (Egan and Jones 2010) However, CRA executives have also asserted that CRAs have nothing to benefit from adjusting their ratings to their clients needs because they have a reputation to uphold. In June 2007, SP claimed that reputation is more important than revenues (Becker and Milbourn 2009) thus asserting that maintaining a good reputation had been a sufficiently strong motivating factor for CRAs to keep their high levels of efficiency and objectivity. In reference to this assertion we can ask ourselves: is reputation a sufficient motivating factor to maintain discipline among rating agencies? As a matter of fact, research led by Mathis, McAndrews and Rochet (Mathis, McAndrews and Rochet, Rating the Raters: Are Reputation Concerns Powerful Enough to Discipline Rating Agencies? 2009)has suggested that this argument is only valid when a large fraction of the CRA revenues comes from other sources than the rating of complex products. When the reputation of a CRA is good enough, and rating complex products become a large source of revenues (more than 40% of Moodys revenues), the CRA will become too lax and inflate its ratings. This mechanism builds on a three-step reputation cycle, ultimately resulting in crises of confidence where a single default provokes a complete loss of reputation by the CRA. First, the CRA tries to build and improve its reputation and gain investors trust by being very strict. Then, once a positive reputation has been gained, the CRA issues more ratings and takes advantage of its reputation. This is when CRAs become more lax and the risk of default incre ases.   Ultimately, when default occurs, there is a crisis of confidence: the opportunistic CRA is detected and its reputation is very negatively affected. This reputation cycle, which is also a confidence cycle, explains why opportunistic CRA are hard to spot and why ratings biases only recently emerged as a concern in response to inquiries from Vailiki Sketra (Sketra and Veldkamp 2009).[3] To exemplify this concept of reputation cycle, scholars find that CRAs are more likely to understate credit risk in booms than in recessions (Bolton, Freixa and Shapiro, The Credit Ratings Game 2009). Moreover, reputation seems greatly affected by competition, as it will reduce the effectiveness of the reputational mechanism for two main reasons.   First, reputation is only valuable if there are future producer rents. As a result, the incentive for maintaining a good reputation is reduced by competition. Second, from a microeconomical approach, if the demand elasticity facing individual sellers is higher in a competitive market, the temptation to either reduce prices or otherwise attract business may be stronger which undermines the quality of output. Therefore, the conflict of interest is not solved by reputation concerns. The second aspect of the conflict of interest relates to the collaboration between CRAs and issuers when designing a debt security. Lewis Ranieri, a pioneer in the mortgage bonds market, once said The whole creation of mortgage securities was involved with a rating (Norberg 2009). As a consequence, starting in the 1990s, CRAs started to offer consulting and advisory services to issuers to improve their ratings; a process that involves extended consultations between the agency and its client. The collaborative process that ensues is as follows: issuers propose a rating structure on a pool of debt. Then, the CRA will usually request a cushion of extra capital, known as an enhancement, to meet the necessary conditions for a specific rating. This practice can be dangerous because it is the CRAs responsibility to ensure that the cushion is big enough to safeguard the product, but issuers will try to minimize this extra capitalization in order to maximize their profit margin. Inside the CR As, consultants and raters were meant to be strictly separated by a Chinese wall'[4]. Regardless, CRAs (namely Moodys) began providing unsolicited ratings and offering consultancy services to improve them. Mr. Arthur Levitt, a former chairman of the Securities and Exchange Commission, pointed out in a recent article in the Wall Street journal that the conflicts of interest arising from such activities are the central problems with CRAs: [Credit rating agencies] are playing both coach and referee in the debt game. They rate companies and issuers that pay them for that service. And, in the case of structured financial instruments, which make it possible to securitize all those subprime mortgages, they help issuers construct these products to obtain the highest possible rating. These conflicts are hard to spot because transparency among these agencies is murky at best, and currently it is difficult to hold these agencies accountable for any wrongdoing (Levitt, Conflicts and the Credit Crunch 2007) The agencies are aware of the conflicts that are inherent to their business model but they claim that they are doing their best as to avoid them. In a letter to Roger Lowensteins Triple-A failure article, Vickie Tillman, Executive Vice President of SPs Rating Services defends her companys business models and practices: At Standard Poors, we recognize the business model we use may raise potential conflicts of interest. Thats why we have always had rigorous policies in place to manage conflicts, and why we currently are implementing additional measures to further strengthen the independence and quality of our ratings opinions. [] the role ratings firms play in the market [] is to provide independent assessments of the creditworthiness of bonds.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In order to make up for these practices, the US Securities and Exchange Commission (SEC) issued a release in February 2007 proposing rules which would identify the issue of unsolicited credit ratings (those not issuer-initiated), as unfair, coercive, or abusive, and thus would prohibit Nationally Recognized Statistical Rating Organizations (NRSROs) from releasing unsolicited credit ratings.   Even though the SEC intervention seemed necessary, it didnt change the industrys business model: by 2007, the mortgage boom had already reached its peak. Regardless of the criticism surrounding the relationship between issuers and rating agencies, the fact of the matter is that they were simply bringing bonds to market based on market demand, which clearly indicates a crisis of the issuer-based model. CRAs misbehaviour has played a central role in the current subprime mortgage crisis. As such, the governments and regulatory bodies should take steps forward to correct the current business model. We shall therefore investigate alternatives to this model in Section 2 of this paper. This conflict of interest leads us to ask, who finally owns the ratings? The evidence regarding whether rating agencies bend to the issuers will is mixed. A paper written by contract-theory scholars, Faure-Grimaud, Peyrache and Quesada (Faure-Grimaud, Peyrache and Quesada 2007) investigates this issue by looking at corporate governance ratings in a market with truthful CRAs and rational investors. They show that at equilibrium, in a monopoly, a CRA will fully disclose information but that issuers may prefer to suppress their ratings if they are too noisy because full disclosure is impossible even when firms have the possibility for ownership (i.e., the right to disclose the rating). Additionally, they find that competition between rating agencies can result in less information disclosure since CRAs make zero profit and fully disclose information on firms that have values higher than the CRAs marginal observation cost. In fact, the current business model seems to favour the banks in their quest to receive better ratings. Dr. Joseph Mason compared default rates for corporate bonds to equally BAA-rated CDOs before the bubble burst and found that the CDOs defaulted more than ten times as often (Mason 2007). While, as we discussed earlier, it may be true that CDOs are much more complex securities than plain-vanilla bonds, another interpretation of the data is that CRAs were much more lax when dealing with a Wall Street securitizer as client. But who can blame them? While it is true that on the traditional side of the business (unsophisticated bond rating) CRAs have a large variety of clients (virtually every corporation and municipality that issues public debt), this is not the case in structured finance. On the contrary, the panel of clients is much smaller and the fees are much bigger. The only issue is that the client pays only if the CRA delivers the desired rating. If they do not, the client can e ither adjust the numbers or take another chance with a competitor, a process known as ratings shopping. Brian Clarkson, former president and CEO of Moodys Investors Service acknowledged, There is a lot of rating shopping that goes on. What the market doesnt know is whos seen certain transactions but wasnt hired to rate those deals (Bolton, Freixa and Shapiro, The Credit Ratings Game 2009). In fact, an important feature of the credit ratings market microstructure is the capacity for a security issuer to choose which ratings to purchase. During this process, a structured debt product is issued and the issuer typically proposes a structure to a CRA. The issuer then asks for a shadow rating, which remains private between the CRA and the issuer, unless the issuer pays to make the rating official. Such choices can reflect both explicit and implicit shopping for desired credit reviews and induce a selection effect in the rating process. Selection highlights the relation between the decision about whether to rely on unsolicited ratings and the potential for ratings shopping, illustrating how different types of potential conflicts of interest in the credit rating process could interact. Indeed, shopping for ratings is a practice at the heart of the different conflicts of interest we mentioned above, as it partly invalidates the reputation argument because there seems to be a trade-off between reputation concerns and the risk for ratings shopping. It also encourages CRAs to strengthen their ties and relationship with issuers, most notably by offering a wider range of services. In an interesting paper, Skreta and Veldkamp (Sketra and Veldkamp 2009) examine cherry-picking in ratings, especially for securitization, by issuers who shop for the highest ratings in order to obtain the hi ghest price when selling to naive or little-informed investors. They highlight the influence of risk aversion in motivating the purchase of multiple ratings. Indeed, because investors are risk-averse, they will try to invest in the best-rated securities for an expected yield without having to asses the risk of every security they may be interested in, and thus rely heavily on ratings. The more ratings they have for a security, the more likely they will be to invest in it. Skreta and Veldkamp (Sketra and Veldkamp 2009) conclude that when combined with asset complexity, rating shopping can lead to rating inflation and thus biased judgment. To support that evidence, Kurt Schacht, managing director of the CFA Institute Centre explained that CRA executives [] were concerned about the hype and insinuation that CRAs easily inflate their ratings in response to pressure from issuers and issuers, implicating the integrity of their process and ratings. In exploring that topic, we were very surprised by the results of our member poll where some 211 of the 1,956 respondents said they have indeed witnessed a CRA change ratings in response to external pressures (CFA Institute 2008). As a consequence, not only does ratings shopping enhance ratings distortion, but it also corrupts the entire rating process by giving issuers an incentive to trick their clients into buying overrated securities. A third and final issue to investigate is the lack of competition in the credit-rating industry.   According to The Economist (The Economist 2007), Moodys and Standard Poors dominated the industry by controlling about 80% of the total market in 2007. The third-place competitor, Fitch, had only about 15% of the total share that same year. The current form of these institutions received legal status when the SEC introduced the notion-barrier of the NRSROs in 1975. The rest of the market is divided among only a few other institutions that have received legal status.   While alluding to the dominance of Moodys and Standard Poors in the credit market, the U.S. Department of Justice has referred to the credit-rating industry as a partner duopoly (Laing 2007). As noted by Jonathan R. Laing, a partner duopoly differs from an oligopoly because the partners in the duopoly do no face fierce competition against each other because ones good fortune in winning a piece of business is typicall y followed by the others receiving the same deal at the same lush fee level (Laing 2007).This duopoly has proven quite profitable, as Moodys operating margin is typically around 50% (if not more) better than Microsoft, Accenture, Intel, Nike or Coca-Cola. In fact, according to Congressman Henry Waxmans statement during the Congressional hearings in October 2008, Moodys had the highest profit margin of any company of the SP 500 index for five years in a row. An important complaint arising from this situation is that the lack of competition permits the main players to shirk, engaging in less effort and research that if they were true active competition (Coffee 2006). It may therefore seem that a free market would ensure competition among its CRAs guaranteeing a higher quality and lower price of the ratings. For that reason, competition from new agencies might create a healthy diversity of opinion, leading to more accurate assessments of debt issuers default probabilities Many scholars have analyzed whether this industry structure contributes to the efficiency of the global credit market. We shall investigate in further detail what seems to be the optimal market structure in the next section by examining the solutions and changes necessary to combating the various issues we have so far considered. Other scholars recognize that the existing duopoly may present risks to the market, especially since the two-rating norm is still in full force. Furthermore, since the CRA business model is reputational-driven business, new competitors may face very high barriers to entry. The CRA industry could therefore not allow for more participants. On the other hand, some scholars suggest that the SECs role in both creating and perpetuating this duopoly by which establishing the status and necessary requirements to become a NRSROs, and an official registry. Since competition can both be seen as a problem and as a solution to the CRA industry and business model, we shall now examine the different initiatives that can be undertaken to improve the overall model and functioning of the credit rating market. Section 2: Solutions to fix the identified problems The subprime crisis has brought to light the poor performance of CRAs in rating structured financial products and reminded investors of CRAs past poor performance in predicting the East Asian crisis and the collapse of Enron[5]. Either directly by regulations, or by market force, there are strong signals that the credit rating business is about to change. The main accusations we previously addressed and the perception that CRAs contributed to the financial crisis led to various investigations and calls for reform. In this section, after briefly presenting CRAs reaction to criticism, we will first analyze the different alternatives suggested by scholars and experts to the current business model and the overall industry structure. We will then study the different reforms and regulatory recommendation that have been suggested to the current business model that would improve CRAs effectiveness and enhance the overall market efficiency. Finally, once these changes examined, from a regulat ory standpoint, we will observe the measures recently adopted by both the European Union and the US government (and regulating agencies), determine how the approaches differ and how necessary regulation is. CRAs reaction to accusations CRAs have responded to the allegations with cries of innocence.   If some rating firms claimed that they did nothing wrong and have indicated that they will cooperate openly in any investigation that comes their way, others   did acknowledge some mistakes and have announced the intention to reform their practices.   For example, spokespersons for Moodys, Standard Poors and Fitch have claimed that their organizations will demand more data and more verification and will subject their analysts to more outside checks (Lowenstein, Triple-A failure 2008) However, some may say that CRAs might have implemented these changes simply to avoid further criticism and regulatory intervention.   Indeed, as Lowenstein claims, none of this [] will remove the conflict of interest in the issuer-pays model .   We shall further analyze the case for self regulation in our analysis. In their effort to defend themselves, the CRAs have sought to minimize their role and influence within the financial industry.   According to a spokesperson for Moodys: We perform a very significant but extremely limited role in the credit markets. We issue reasoned, forward-looking opinions about credit risk. [] Our opinions are objective and not tied to any recommendations to buy and sell (Benner and Lashinsky 2007) The consensus of these critics is that the agencies dropped the ball by issuing investment-grade ratings on securities backed by subprime mortgages they should have known were shaky (Benner and Lashinsky 2007) Rather than accept responsibility for their own lack of diligence, the major CRAs have sought to lay the blame on the mortgage holders who turned out to be deadbeats, many of whom lied to obtain their loans (Lowenstein 2008).   Of course, it must be noted that other groups and individuals share the responsibility for the global financial downturn.   As Laing says in regard to CRAs, they were just one link in a subprime production line that stretched from sleazy storefront mortgage brokers, corrupt appraisers and avaricious originators to fee-crazed securitizers and, yes, mendacious borrowers (Laing 2007).   Nonetheless, as Laing further notes, CRAs must be seen as key enablers in the problems development.   i) New agency industry structure and business model Proposals have been made to improve the credit-rating system and thereby reduce the problems we identified. First, it seems that CRA need more independence. As Laing suggests it, many of the changes implemented in the auditing industry with the Sarbanes-Oxley Act could be similarly carried out. (Even though one may discuss whether this Act has improved capital markets transparency or not, one must note it has enforced the implementation of internal control, due diligence and transparency procedures in firms)For instance ratings agency employees should be prohibited from accepting any favors (whether it is money of gifts) from their clients and the leading analyst should rotate from a client to another with a certain frequency and should wait at least one year before joining their clients firm (an issuer or investment bank in this case) Laing also suggests that the 2003 SEC proposal, which prohibits the linkage of analyst compensation with new business development, could be reenacted. First, CRAs should be more transparent in two distinctive ways. The global credit market needs greater transparency about CRAs overall rating model: rating assumptions, methodologies, but also the fee structures, and past performance. To be more transparent CRAs should follow stricter disclosure requirements (as mentioned in the Rating Agency Act in 2006). Professor Charles W. Calomiris (Calomiris 2009) suggests that, more disclosure could also be required for publicly traded companies with rated debt when filling in debt-offering documents Particularly, in order to prompt CRAs to reduce or eliminate their conflicts of interest, they should disclose any structuring service or consulting-related activity (and the fees related to such practices) provided to a company in connection with the rating of fixed-income securities Second, there is a strong need, expressed by both scholars and analysts, for a clear distinction between the rating of structured products and traditional debt products and thus different rating symbols could be used so as to avoid confusion. The issue is, not all AAA-rated securities are created equally. As demonstrated in the current credit crisis and as proven by Drexel University finance professor Joseph Mason, CDOs receiving a Baa rating from Moodys were more than ten times as likely to default as similarly rated corporate bonds (Mason 2007). As a matter of fact, despite the identical symbols, structured products typically do not have the same risk profile as traditional corporate bonds. By nature, whereas corporate default can be estimated by very few factors (namely the level of leverage of the firm and its capacity to generate stable cash flows from operations), default on structured debt is dependent on hundreds or thousands of individual defaults [e.g., an underlying mortga ge pool] that are estimated given some distribution. They are not the same analysis so they should not be the same ratings. (CFA Institute 2008) A different rating scale according to the risk profile of the products could be used as to not mislead investors into buying misrated securities. As an alternative, Professor Coffee at Columbia University suggests the SEC could define a maximum default rate for different class of ratings, so that if a CRAs ratings were to exceed SEC parameters, it would loose their NRSRO status. (Coffee 2006) Building on this, the entire rating nomenclature could be changed and ratings could be expressed quantitatively as to avoid grade inflation in CRAs opinions. Indeed, in contrast to numerical estimates (of the probability of default (PD) and loss given default (LGD)),which do have objective and quantifiable meanings, letter grades leave more room for sub

Sweden :: Countries

Sweden is a country of many wonders. It has an amazing literary culture. The scenery is literally to die for. Sweden is a land of many hills and natural beauties. It is the home to many wonderful sports. Once you visit Sweden once, some say it is hard to not come back and even harder to leave. It is just an amazing place to visit or live. Sweden has a fascinating history. The Vikings from Sweden traveled in boats and carried out surprise attacks on enemies (Lerner 21). The origin of today?s democracy in Sweden originated from the Vikings (22). By the end of the 1800?s Sweden was in great economic danger. With an unemployment rate of one point six, Sweden?s jobs were in short supply (40). In the elections of 1991, Carl Bidlt became Sweden?s prime Minister. He worked to curd Sweden?s economic problems, and it worked (41). Sweden was back to normal in no time. Sweden?s economy is great. By most standards of living Sweden ranks within the top ten countries (Lerner 54). Industrialization did not take hold until the early 1980?s (54). Sweden has a large array of crops, though only three percent of the country is part of the farming industry (56). Sweden?s industrial sector contains one fourth of it?s population (56). Swedish firma are among the world?s leaders in computer-assisted design and manufacture (56). Sweden has a lot of diverse people among the society. Most of the people in Sweden are in their thirties to forties. Only a few are ninety or above (Lerner 46).

Computers in Education :: Teaching Education Essays

Computers in Education The computer has influenced education in a very positive way. There are now an estimated ten million computers in schools around the country. Computers equally benefit both the teacher and students. The computer allows for faster, neater, and more creative assignments. Tools such as the Internet, Excel, Word, and Access allow students to easier research and prepare papers. Computers are very helpful to teachers. Many teachers can take advantage of the computers in their classroom or at home by entering grades and allowing the computer to compute them. Entering the grades can be very simple and fast. Allowing the computer to compute the grades saves time from manually computing them. The teacher can also set up attendance on the computer. This is a quick and effective way to see who has missed class, or has been tardy. All this only requires the right type of software, and very little time. Educational software can also help a teacher out. If a student is having trouble with a particular Math, English or Science strategy, a teacher can setup the program to help teach the student. This is helpful because the teacher can continue teaching the rest of the class, but also know that the other child is being helped. The computer allows for a new creative way of teaching, one that can keep the students interested. Many students today rely on the computer for homework assignments. This can range from typing a paper to finding a book on the Internet. Many homework assignments for high school and college students must be typed. Some assignments may also require charts or tables. The computer can suggest different phrases or words to make the paper sound better, use spell check, and allow the document to be saved. This also helps a teacher because the papers are much neater, making them easier to read. It is very beneficial to the student because information can be found and processed a lot faster. If a student is trying to find a book, just typing in a few words can locate the book much faster then looking through a card catalog. These are little things that save the student and teacher time. With all the time that is saved, the more learning can take place.

Oedipus Tyrannus through Freuds eyes Essay

Oedipus Tyrannus is deemed as Sophocles’s magnum opus and is undoubtedly the most famous of all Greek tragedies. Aristotle went to the extent of calling it a perfect play. It was first performed in around 425 b. c. , only just after a plague that had wreaked havoc on Athens, Oedipus Tyrannus was set in Thebes, a city which was also facing the same catastrophe. King Oedipus was informed by the Creon, the brother of Oedipus’s wife, Jocasta that the city will remain a sufferer unless and until the slayer of the previous king is convicted. Oedipus promised to discover the killer’s identity and to prosecute him. Ignorant of the fact that he himself was the murderer, Oedipus unremittingly trailed the truth until he found his own guiltiness and blinded himself so he might never catch the sight of his father in the afterworld. A Freudian analysis of Sophocles’ Oedipus Rex (the King) would point out that Oedipus truly had an incestuous nature. This was exposed not only by Oedipus’ marriage to his own mother, by whom he had children, but also by his unreasonable preference for his daughters, Antigone and Ismene. While the attention he showed to his daughters was profound and braced with sexuality, he dismissed his sons as creatures who are able to look after themselves. Although he was unconsciously attracted to his daughters, he also had this fear in his mind that his daughters would become pariah and will be unable to marry. Freud thought that all the men since birth harbor not a natural repugnance to incest, but the contrary which is an instinctive sexual attraction to the mother. He says, â€Å"[The experiences of psychoanalysis] have taught . . that the first sexual impulses of the young are regularly of an incestuous nature† (Totem and Taboo, p. 160). He also emphasized that each male anchorage undecided feelings towards their fathers. â€Å"But surely I must fear my mother’s bed? † (Oedipus Tyrannus, line 576) When Oedipus throws this question to his wife Jocasta, he is totally oblivious of the profundity of his words. The Messenger has just informed him about the murder of King Polybos of Corinth, Oedipus’ supposed father. Now free in his mind from the intimidation of Apollo’s foretell that he would kill his father, Oedipus here desires to validate with his wife that, as his hypothetical mother (the queen of Corinth) is still living, he must still look into that for fear that he sleep with her, as the oracle also foretold. But his words touch a more primary issue: Why is the forecast that he will sleep with his mother so horribly threatening and vile? Oedipus is actually calmed and contented about the natural death of his supposed father Polybos, as in his mind this frees him from the concern that he will someday kill his father. Freud had suggested an interesting explanation of the source of the taboos against incest and parent murder. In the primitive civilization, people lived in groups dominated by the most powerful male, the father, who hold a sexual monopoly over the group. When each of his sons grew to an age where he would challenge the father’s supremacy in order to get a part of the action, so to challenge, the fathers forced them to leave the group. After so many sons had been so treated like this, they resolute to cooperate in order to remove from power their father and get hold of the females, their mothers, for themselves. With their collective strength, they killed the fathers. In civilized society, Freud observed, proscription against such crimes go unsaid, but this is not evidence that we no longer harbor such wishes. The conscience of mankind which now appears as an inherited mental force was acquired in connection with the Oedipus complex. However, from Sophocles’ text, it would seem that Oedipus does everything in his power to avert these two crimes. Freud too examines the play from this vantage point although, under the novel concept of unconscious motivation, moral condemnation gives way. Freud’s perspective added another dimension to previous simplistic disputes as to whether an action was freely willed, and thus subject to moral injunction, or determined by fate. Freudian intentionality implied that there were actions which, though not intended (consciously), nevertheless were compulsive enactments of inner latent wishes (Hamilton 1993, p. 209).

Pathophysiology

The causes or pathogenesis are usually multiracial. Several risk factors can predispose to infection or initiate inflammation and subsequently the infectious process. Intact canal skin and cerement production have a protective effect against infections. This is secondary to the fact that cerement produces a pH in the ear canal that is slightly acidic. On the other hand, breakdown of skin integrity, insufficient cerement production, or blockage of the ear canal with cerement (which promotes water retention) can predispose to Infection.Skin Integrity can be Injured by direct aroma, heat, and moisture or persistent water In the ear canal. Such damage Is thought to be necessary for initiation of the inflammatory process. Subsequently, edema may result, followed by bacterial inoculation and overgrowth. In Otis External, the infection is caused by bacteria or fungi. Scratching, inserting objects into the ear canal, or moisture (from swimming, for example can make the ear canal vulnerable t o Infection.The external auditory canal is a cylinder measuring approximately 2. 5 CM in length and 7. 0 to 9. 0 mm in width, extending from the conchs' cartilage of the auricle to the humanity membrane . It Is divided Into a lateral (outer) cartilaginous portion that occupies approximately one-third of the canal and a medial (Inner) bony portion that occupies the remaining two-thirds. Their junction is termed the isthmus and is the narrowest region of the ear canal.The outer cartilaginous portion is lined by thicker skin with numerous addenda structures including cerement glands, sebaceous glands, and hair follicles. The inner bony portion of the canal contains thin skin without subcutaneous tissue. The dermis In this area Is In direct contact with the underlying peritoneum. Thus, minimal Inflammation or Instrumentation of the bony canal causes significant pain and/or Injury. The Inferior tympanis recess Is a small depression In the inferior medial aspect of the ear canal, adjacent to the tympanis membrane.Debris can collect in this area and cause or perpetuate infection. The lining of the ear canal is a exaggerating exogamous epithelium that undergoes continual sloughing. Epithelial migration is a naturally occurring cleaning process for the ear canal that allows egress of keratin debris and cerement. Epithelial migration begins in the center of the tympanis membrane and continues out to the medial, then lateral aspects of the ear canal.The ear canal is bound superiorly by the middle cranial Foss, interiorly by the temporariness's Joint and paranoid region, medially by the tympanis membrane, posterior by the mastoid cavity, and inferiorly by the skull base and soft tissues of the neck. These boundaries have particular importance when considering the potential complications of external Otis. The fissures of Sanatoria are a series of embryological fissures In the anterior aspect of the fissures also allow potential spread of ear canal disease to the paranoid r egion, temporariness's Joint, and soft tissue of the upper neck.

Value Pricing at Procter & Gamble

Specific assumptions about the relationship between price changes and market share changes Table. 2 Suggested Budget Requirements Fig. 1 Value Price Result Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  3 Objective 1: Prisoner’s Dilemma The P&G pricing system in the 70s and 80s was oriented towards market share.Please describe the prisoner’s dilemma in which those companies in the P&G’s markets got rewarded that maintained or increased their price promotions. For sake of discussion, let us use a single company (Unilever) as an example to illustrate how all the companies in P&G’s markets experience prisoner’s dilemma. Since Unilever and P&G operate in the same market, a lot of their actions are interdependent on one another. Initially, the two firms were engaged in a prisoner's dilemma. Major moves in product, pricing or policy without providing their intentions to the other would result in losses for both companies.Thus, a surprise move by any firm would yield lead to inefficiency. Ideally, both parties would prefer to escape the dilemma. This desire would give birth to a cooperative set of behaviour between the two players. This cooperation however would cease if Unilever (or P;G) decides to change its behaviour by increasing or maintaining its price promotions when P;G (or Unilever) chooses to cut back on promotions. Such a move by Unilever would lead to the adoption of a sequential games situation by both firms as the traditional cooperation would no longer exist.By looking ahead to the future response of P;G and reasoning back to the present, Unilever decides that this approach would be best for the firm. By increasing promotions without notifying P;G (which is planning to cut back on promotions), Unilever may see an advantage to the firm. This is referred to as opportunistic behaviour. Unilever may have the perception of P;G as being a bullying firm, and Unilever did not want to be left coopera ting only to have P;G cheat. Since the two firms were cooperating, both firms would be expecting the other to react to such a move.P;G now faces a dilemma whether to increase its price promotions, or to devote funds to increase advertising on products, or to go ahead and cut back on promotions (original plan and the riskiest). Although it is uncertain how they respond, there is no doubt that Unilever would have analysed the probabilities of P;G's potential reactions. Since consumers had become increasingly price sensitive, P&G would lose out in market share if they did not react. It is likely that they would choose to respond with a tit-for-tat move through mimicking Unilever in order to penalize them for cheating.This would result in Unilever hitting back, thus causing P&G to deliver a second punishment. There is no doubt that Unilever analysed this position of P&G and decided on the probability of P&G's response. Since P;G has value in other markets, it is likely that they would r espond and react. Though a reaction is likely, Unilever knew that its consumers are risk-averse. Thus by surprising P;G with higher price promotions, consumers would attach loyalty to Unilever products before P;G could come up with a strategy.If P;G reacted by offering similar promotions, consumers would continue to purchase Unilever products till the prices offered by P;G are low enough (resulting in lower profits) to make consumers shift their loyalties. Value  Pricing  At  Procter  ;  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  4 P;G could; however, do a number of things to overcome the risk aversion involved in Unilever's move. First, they could rely on their reputation to launch similar or better promotions, since risk aversion would be minimal as both firms are well-known national chains.They could advertise against Unilever, or launch ads which compare the prices; something that had not previously been done when the two firms were cooperating. Since this reaction is probable, Unilever has established that this reaction by P&G will result in an economic advantage in at least one of its markets. Perhaps P&G's reaction would allow Unilever to go ahead and capture new markets while P;G counters this initial move. Unilever decided to cease the cooperative strategy and made an opportunistic move by offering higher price promotions without notifying P;G.Before doing so, it was imperative that Unilever analysed the probable reactions; as well as, the results of these actions. Though it would likely illicit a tit-for-tat response, Unilever felt that the probable outcome would be advantageous enough to cease the cooperative strategy. Unilever's approach demonstrates an ability to look ahead and reason backward to select a move that will help them to gain market share at the cost of P&G (or basically any company which chooses to cut back). Objective 2: Organizational ProblemWhich was P&G’s organizational problem that enforced these strong promotional activit ies? Each business category which consisted of a collection of up to 3 brands was headed by a General Manager. The General Manager of each category had ownership of his/her own Profit and Loss statement. Within the category each brand was managed by Brand Managers. Each brand group was responsible for the success of the brand they managed. Hence there was competition within brands for the promotional budgets as well as manufacturing capacity.Promotion up the ranks within P&G was dependent on the sales and profits of each brand in the case of brand managers and for each category in the case of category General Managers. Even though a criteria like the ability to develop the skills and talent pool of the people lower in the hierarchy was present, it was still the sales and market share parameters that dominated the promotion decision within the firm. Amidst the fight for market share among FMCG (fast moving consumer goods) companies, promotional spending increased and soon became a no rm.Brand Mangers in P&G had short stints on a given brand (maybe a year or two) before they moved either horizontally, vertically or out of the organization. Since compensation and evaluation of performance was dependent on growth over previous year’s sales, managers pushed for relatively more promotional spending, in-order to increase market-share and sales irrespective of the cost. The short-stint of managers did not give them any incentive to think about the long term profitability of the brand, since they were not the ones who would beValue  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  5 held accountable in the long term. This led to a short-term focus by the manager for their own gain/incentive rather than looking at the broader picture and profits of the company as a whole. Hence strong promotional activities were enforced due this particular organization and incentive structure. Objective 3: Risks of implementing Value Pricing The category manage r for dish care, John Bess, was considering the introduction of value based pricing (= fair price; lower list pricing than before, but less promotions).Please describe the major risks for P&G in 1991 in case of implementing value pricing in the market for light-duty liquid detergents. Following are the main challenges and risks that P & G could face on implementation of value pricing 1. Operational Challenges: Applying and implementing the value pricing across the company shall certainly have the operational difficulties. This shall be complicated considering the large company and category size, various brands in the LDL Detergent Category, 8000-person sales force and thousands of customers. 2.Difficult to maintain Price Stability: Price Stability is critical to build and maintain a strong brand franchise and value pricing aims for the same. The category saw four price changes per year, on average, and there are 64 different price zones across the U. S. making it more challenging to implement the value pricing. Even if executed, it will be really difficult to create and maintain a significant price impression in the consumer’s mind. 3. No cushion for absorbing abrupt changes in raw material prices- These price changes shall have to be passed on to customers thus defeating the purpose of providing value pricing to the customers.This may also lead to fluctuations in prices. 4. Opposition by Distribution Channel Members: Margins and benefits to distribution channel members – retailers, distributors and wholesalers shall be squeezed under value pricing. There are fears that wholesalers and retailers may oppose the move and can either punish P & G in some way so as to deter competition from taking any such moves or can altogether deny passing the lower prices to the customers or at the worse, delist P & G products. 5.Uncertainty about volume and revenue forecast: Value Pricing is very new to P & G and thus there is an uncertainty about the profit of t he company and different members in the distribution channel in case value pricing is adopted by P & G. Besides this is an untested experiment. And the risks are huge (P & G market share for the category is too low (10%), and it will be difficult to lead the remaining 90% market. 6. Promotion and Price Pressure from the Competition: LDL has become a promotion-intensive category and is one of the most heavily promoted categories in the grocery store.P & G’s own research showed that the Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  6 market share was highly correlated with leadership in major media and feature advertising. Competitors like General Foods and Nestle have been fighting hard on price. So reduction of spending on promotion (as for value pricing) may hit back P & G in future. 7. Impact on customers: Value pricing shall make P & G move away from discounting. Thus, it may lead to the loss of discount-searching customers to the competitors w ho rely heavily on providing discounts and coupons to customers.Value pricing may lead to almost 10-20% price reduction and can altogether reposition the P & G products in the market. Value-based pricing may increase the loyal customers but the impact shall be much slower whereas the loss of the discount-searching customers shall be immediate. Long-Term gains with the increase in loyal customers may probably be well off-set by the loss of discount-searching customers. 8. Loss of Shelf Space: Prominent visibility and placement of a product is an important factor for the customer in order to make a purchase decision.Move to value pricing shall lead to the loss of fair share of shelf space and display allocation as no emphasis on the same is being laid in value pricing. 9. Fall out impact: Introduction of value pricing is a significant decision for P & G and shall require radical changes at the organizational level. P & G had not done anything this radical on such a scale earlier. In c ase of the Value-based pricing not working for P & G, the fall-out effects can put the business at high risk thereby impacting brand and category profitability and customer loyalty at risk.Objective 4: Short Proposal for Value Pricing In the coffee market, P&G’s own research showed that market share was highly correlated with leadership in major media and feature advertising. The responsible managers had many arguments not to introduce value pricing. However, assume you really want to implement value pricing. Please write a short proposal including recommendations for new list prices and budget requirements across the various marketing vehicles. Effects on sales and profits should be included.Please use case exhibit 13 as a basis for your pricing proposal (current, old plan) and calculate changes in the plan due to the implementation of value pricing (new plan). Even though our own research showed that market share was highly correlated with leadership in major media and feat ure advertising, which does not suggest Value Pricing strategy for coffee category, we still think this method can help us to achieve higher profit, based on reasonable assumptions and planning.Therefore, we work out a Value Pricing protocol for the coffee product, which is as follows: Value  Pricing  At  Procter r  &  Gamble  (A A)  Ã‚  Ã‚  Ã‚  Ã‚  7 Part I Basic Assumptions about the ma I: arket reacti towards price changes ion 1. Fr rom the artic we know that the consumers in the coffee segment is highly sens cle, w n sitive to pric Therefore the ce. e, ma arket reactio to price ch on hanges should be remark kable. As price goes down, the market share should incr s m e rease.When the price d n decreased to a certain am mount, which can h att tract the mos sensitive consumers to change, th market sha should in st c o he are ncreased by the largest p percentage. T Then, the increasing rate should be down. e He are the sp ere pecific assum mptions abou the relatio ut o nship betwe price cha een anges and m market share changes Ite ems Unit Price Changes e Market Sha Changes M are s Senario 1 -10% +7% Senar 2 rio -15% % +15% % Sena 3 ario -2 20% +1 18% Se enario 4 -25% +21% + Senario 5 S -30% +23% Senario 6 -35% +24%Table Assumpt e. 1 tions about th relationsh between price changes and mark share cha he hip ket anges 2. As A in value pr ricing strateg the prom gy, motion should be decreas along with the price adjustment, to find the d sed op ptimal list price of coffee we set up a 10% decre e; ease in mark keting expend diture in all scenarios, w which is att tainable base on our co ed ompany’s con nditions. 3. W simply ass We sume the ma arket size, de livered cost are not chan t nging. Part I Value Pr II: ricing Proce Please re the attac ess: efer ched Excel f file. Part I Value P III: Price result: Please refer the attached Excel file. r d Fig. 1 V Value Price R Result Here b Value Pri by icing, we fin the best list price for o coffee, w nd our which is 47. 8 And the d 81. derived prof based on o fit our assum mptions will b 71. 71, wh improve by 28. 75% be hich ed %. Value  Pricing  At  Procter  &  Gamble  (A)  Ã‚  Ã‚  Ã‚  Ã‚  8Part IV: Budget requirements From the article, we already knew that feature advertising is important to market share, so we will not cut the Feature display part in total marketing expenditures. We try to control the un-critical part to realize the deduction in marketing. Here are the suggested budget requirements: Total Budget for marketing expenditures Advertising Coupons Off Invoice/Feature display 38. 55 35. 15 265. 67 339. 37 Table. 2 Suggested Budget Requirements

Introduction to Management

Louis Button is one of the most valuables brand in its category which is Luxury in goods. Its products includes of leather goods, handbags, trunks, shoes, watches, jewelry and accessories. Most of people adorned with the LB monogram which designed by well known designer and easily noticeable with simple live style as the idea. Louis Button with a brand Value of $28. 4 Billions in USED with a sales of $9. 4 Billions (Reuters, 2013). 3. Country Background Louis Button headquarters is located in Paris, they had open many outlets all around the world and Singapore have 3 big outlets and the latest which located inMarina Bay Sands that open unique â€Å"island† store that will â€Å"float† on the water. Singapore it's a developed country which also attract tourist from other countries to come to visit as a traveler as well as shopper. The three outlets can be found in Tasmania, ION and Marina Bay sands. 4. SOOT Analysts Soot analysis are the shorten words of Strength, Weakne sses, Opportunities and Threats. SOOT analysis are mainly used for a company to build their outlets/factory in overseas to extend their products and profits. 4. Strength Brand Value ( the brand is one of the oldest fashion houses with more than 150 ears) Easily recognizable (the logo and monogram) The brand has it own outlets in most of the large shopping center. Well known Designer Custom Tailored available for elite customers 4. 2 Weakness The Shops only available in exclusive stores making it difficult for developing countries The most expensive price compare to other competitors Rarely to give discounts to customers 4. 3 Opportunities The company needs to make new current fashion trends Large market for luxury goods Celebrity attractions Synergy between brands/merger 4. Threats Financial crisis Competitors Increased market for counterfeit products Resources are decreasing . PEST analysts 5. 1 Political and legal The anti-counterfeiting trade agreement (ACTA) aims to establish an d international legal framework for targeting counterfeit goods. Where as in Singapore has become one of the biggest shopping country in Asia, furthermore Singapore is a Bureaucratic country and extremely centralized, with 17% corporate tax, less tax regimes; investors are not subject to capital gains tax, dividend tax, and foreign exchange controls (Merger, 2013).On august 9 1965 Singapore became and independent nation and consistently increased their economy, by maintaining their productivity with a stable overspent and has severe laws in place and due to strict governance and associated fines less corruption, efficient and transparent government. Singapore has ranked the 1st in the global enabling trade index and 18 FAT with trading partners in their trade policy. Singapore itself have a strong economy statistics. It was recorded and the data shown as interest rate:O. 2%, Growth rate; 6. 90%, Jobless Rate 2. 10% and GAP per Capita $37,293 (Merger, 2013).This massive record shows that Singapore have strong basis economy in their government. Louis Button with a sales of 7. 2 billions in 012 were involved in Singapore Trade to GAP ratio of 270. 8%, and high dependency on global market trends and fluctuations in macro economy. Singapore citizen with excellent education and healthcare (Saurian C, 2013). Literacy rate of 92. 5% and a multitasking language where they lived as a multinational country that supports every citizens to speak 2 languages, as their mother tongue is Mandarin or English. A significant percentage of non-residents who lived in Singapore with a Gin coefficient index of 48. Shows that Singapore can easily adapt with foreign where the employee of the company can interact with customers behavior and promote their products relay on their cultures behavior and difference. In the last tens of years ago, technology in Singapore has a massive evolved of their needs. The growth of technology helps Louis Button to communicate with their headquarters, d ue the change of currency, products release, transactions and supports more efficient. Furthermore it give a huge impact for both companies and countries to safe their times to manage their needs.Whereas Singapore had become a developed country the change of technology to renew their materials use its not problem for them to follow the world trade business. 6. Porter's Analysis Porter's Five Forces Analysis 6. 1 Threat of New Entrants Low; Competitor : GUCCI, Yves Saint-Lauren, Channel, Bally. Jewelry; Montanan, Bulgaria, Carrier, Office Pannier. Even though LEVY have a strong many competitors Luxury goods, LEVY offer a strong and unique in their products such as; high quality products, well service for every customers and brand value.Furthermore, LEVY has no worries with their competitors they have a loyal customers who always bought the products and advertise to their friends, longstanding commitment to quality and Investment required would be extremely large for those who do busi nesses. Besides that for a new goods brands wont give an impact to LEVY (Dang, 2013). 6. 2 Bargaining Power's of Suppliers For a big company LEVY have a Suppliers and subcontractors are required to comply with strict environmental guidelines.Where LEVY needs lots of materials they will have many offers which the company produce the materials with the lowest deals and highest quality needs (Dang, 2013). 6. 3 Bargaining Powers of Customers With branded name and value customers had become the most loyal of companies buyers, from the experience that they ever had, has build the trust and set their mind become a loyal buyer. Fashion is a trend with a strong name LEVY has put their products into the top levels and Louis Button products are never on sale. 6. 4 Threats of Substitute Products High profile luxury goods LEVY brands have high quality products differentiations and believe. . 5 Rivalry Among Competitors Moderate; In every company will always have their own competitors in this cas e LEVY are working in Luxury industries in a big scale to have an competitors will always be a positive things to brought new ideas and trends, in fact competitors do not sell exactly same products and different brand value (Dang, 2013). To make LB more appealing to the consumers, some products of the brand can be made available only in small quantities, by limiting its production of certain products from time to time, or producing special edition of the same handbag in different markets.LB product could become even more premium, Create products for collection of limited editions, expend the trend by increasing the popularity by advertisement. Open their outlets store only in high end malls all around the world. To become more premium in their products LEVY may consider to concentrating its equines model to production of leather goods only becoming specialist in their interest. Louis Button is one of the leading fashion trends industries in the world which has significant every year .Louis Button will always have their loyal customers where they bought their new products, with a strong brand value LEVY has no worries with their competitors. On the other hand due the change of time they have to consider with their resources that year by years will decreased their materials. Louis Button shall put more concern on their weakness in both internal and external put them in the Geiger level of luxury goods market. They may consider to merge with other company in different products offer to increase and fasten their sales.