Diversion in the Criminal Justice System Essay

Diversion has been known to be called, â€Å"the easy way out†, or â€Å"a slap on the wrist†, but diversion entails more than an offender saying, â€Å"They got an easy way out†. According to the book diversion can be a type of rehabilitation, â€Å"The National Academy of Sciences defines it as â€Å"any planned intervention that reduces an offender’s criminal activity† (Walker 2008, pg 251). Most criminal activity is done by people from the ages of 14 and 24. The main goal of rehabilitation programs is to reduce crime sooner than later the book refers to it as, â€Å"planned intervention program, that might include counseling, education, job training, or some other program† (Walker 2008, pg 251). Diversion is meant to help keep people out of the criminal justice system; due to the fact most of them are not violent offenders. It refers to people that are not a serious threat to society, but made a wrong choice and it is their first time of fending. Using diversion, the courts hope that it will not only keep people out of the criminal justice system, but it will help them, rehabilitate them, or try to resolve the problem. It also is an additional way to keep from overcrowding jails, courts, and any kind of correction institution. In doing this the courts can focus on more serious offenders. According to the text book, â€Å"diversion is a planned intervention with a treatment component and the goal of getting offenders out of the criminal justice system as early as possible† (Walker, 2008,pg.262). In diversion the offender is given a jail sentence as in â€Å"11/29† if the offender does not commit any more crimes then they will be expunged from the criminal justice system and then they will have a clean record. However, if they recommit a crime, they will have to serve 30% of their original given jail time. For example- 30% of â€Å"11/29† in jail, would  be 109 days. When given diversion, the offender is usually given probation as well. With probation the offender usually has a class that he/she has to attend that is part of their rehabilitation process. According to the peer reviewed journal, â€Å"Probation and Diversion: Is There a Place at the Table and What Should We Serve states that, â€Å"Three times as many offenders participate in probation and/or diversion programs than incarcerated. Probation and diversion programs are considered â€Å"alternative† punishments, and public policy has not focused on how to strengthen community corrections. New developments on targeting specific behaviors through the use of theoretical models of supervision can improve outcomes, or at least delay further offending?† (Taxman, 2010). Probation is a way to stay in touch with the offender, by having them come in and have meetings with their probation officer. The reasoning for this is to keep the officer up to date with the offender and the offender’s progress. They make sure that the offender is doing everything they are suppose to do, paying court cost, trying to find a job, not getting in any more trouble, and to just make sure the offender stays on top of their priorities. The classes and programs are meant to help the offender in many ways such as; realizing that they made a mistake and to see how they could possibly better themselves, or whether it’s hanging out with a different crowd, or just saying â€Å"NO Thanks†. Diversion has been around for centuries. According to the text book, â€Å"Diversion was one of the great reforms of the 1960s† (Walker, 2008, pg.262). This statement backs up some of the history behind diversion. A article concludes more information about the history of diversion, â€Å"The concept of diversion of juveniles from the juvenile justice system has a long history in the scholarly literature as well as in federal juvenile justice policy. The theoretical background of diversion is based on the â€Å"labeling† principles dating back to Tannebaum (1938). The scholarly debate was further developed by the research of Becker (1963) as well as Lemert (1951). Becker (1963) argued that labeling by certain social groups in power have a detrimental effect on juveniles. The work of Lemert (1951) discussed the effect of secondary deviance of juveniles that were processed through the juvenile justice system and contributed to the argument that the system, instead of help ing, may actually contribute to further delinquent acts of  juveniles† (Marsh, 2005). This makes complete sense why this would be thought of in the way it was. Tannebaum, Becker, and Lemert were all right in the idea that juveniles should be dismissed from the criminal justice system, to be given another chance. They also said that if juveniles were not dismissed from the criminal justice system that â€Å"labeling† could take affect very easily. If a juvenile is proven guilty an certain crime, that could essentially lead the individual to living up to their â€Å"label† and lead them to commit more deviant acts. This is why they try to give them another chance and treat them with a diversion program of some sort. An additional quote from text book states that, â€Å"Commission gave it strong endorsement in 1967, and in the 1970’s an estimated 1,200 diversion programs were established† (Walker,2008,pg.262). Given this information one could conclude that during the 1960’s the criminal justice system was establishing more of a variety of ways to help people and trust them with a second chance. The text book does explain that this was not the â€Å"first† form of diversion, â€Å"Historically, many offenders were diverted from the criminal justice system at an early age. Police officers routinely chose not to arrest someone even though there was probable cause, and prosecutors dismissed the cases when prosecution would not serve the â€Å"interest of justice†. We call this old diversion† (Walker, 2008,pg. 262). Police officers have been practicing diversion for a long time. They trusted that the offender would not recommit once they had been caught once, considering it was their first time, or they only committed a minor crime. However, the diversion that is used today is more of a modern approach. Programs are offered, that instills goals in people, and is managed by a professional staff that offers assistance and treatment. According to Taxman, â€Å"These models are important since they help provide a meaning to the core practice of diversion/supervision programs—face-to-face contacts. Moving away from generic contacts to ones that are focused on specific behavior holds promise in elevating the value and importance of probation and diversion programs in correctional policy and practice†(Taxman,2010). This is how program and treatment are today. The professional workers are more involved and tuned in to their clients’ problems. All of this is to try to keep people out of the criminal justice  system. The more people that are kept out of the system, the better off the system will be. Diversion puts that fear into someone, because they know if they mess up again then they have to serve 30% of their jail time. Diversion is meant to act not only as a â€Å"second chance†, but also a deterrent to not commit future crimes. Has diversion been proven to help people? Everyone is different and diversion helps some people and for others it does not work. For the people it does not work out for, are usually trying to ride out the system, getting in trouble, getting longer probation sentences, according to a academic journal, â€Å"Developing restorative practice: contemporary lessons from an English juvenile diversion project of the 1980s.† states that, â€Å". As a result, the projects quickly became skilled in negotiating solutions in the interests of, and according to the wishes of those affected, while also enabling young people to acknowledge their own responsibilities and to take action accordingly. These successes have not been built upon effectively† (Smith,425-438,2011). In this sense diversion has not been successful; the people that were involved in this research had not taken diversion seriously and had been irresponsible for the actions they had taken. On the other hand, some peopl e do take it seriously and it has been proven successful. Diversion can be tough, according to an article concerning diversion programs, â€Å"Maryland’s diversion program for alcohol-impaired drivers (i.e., PBJ) allows a driver to plead guilty or nolo contendere, or to be found guilty in a criminal proceeding but have judgment stayed pending completion of a probationary period. Conditions of probation may include participation in treatment, an alcohol education program, selfhelp groups (e.g., Alcoholics Anonymous), and/or the ignition interlock license restriction program. Drivers who violate the terms of probation (including having another alcohol-related offense) may have the original charge reinstated and be further prosecuted for violating probation† (Ahlin). This is an example of a diversion program, it explained the proceeding s and the conditions that went along with the program and what would happen if the  offender failed to participate successfully. It also explained that in doing the following treatments that go along with the program are considered â€Å"self help† groups, like Alcoholics Anonymous and this can be a way to help someone while they are under probation and eventually help them be expunged out of the criminal justice system in the near future. Diversion programs are initially a way to help individuals make better choices in the future, and to have hope in the offender that he/she learned their lesson the first time. Another time of diversion program is called Adolescent Diversion Program (ADP). This program is based on juveniles. This particular program is to help juveniles be more involved and it emphasizes on community service work. The article states, â€Å"a community centered paradigm where students are taught to work with communities to better understand contexts surrounding a social problem, as opposed to merely volunteering to provide a service to a community. The Adolescent Diversion Project (ADP), which has been operating for over 30 years, demonstrates critical community service through the type of relationship built between students and the local community† (American Journal of Community Psychology, 2010). This program focuses on young adults and to try to steer them away from crime by having them do community service work and be more involved. An article inquires that, â€Å"Diverting juvenile offenders from the traditional juvenile justice system has been influenced by various theories but most prominently, labeling theory and differential association theory. Differential association theory’s basic premise is that through association with deviant groups, individuals are more likely to become deviant themselves. Juveniles incarcerated with other juvenile offenders will interact and are more likely to join deviant groups† (Marsh 2005). This is a good reason why the ADP program deals and focuses on juveniles. If more attention is paid to young adults and they are stopped right when they get in trouble it could be a factor in reducing crime, because if they are stopped and corrected while they are young, they will not commit when they get older, or possibly age out of it. People debate whether diversion and diversion programs work, in the sense of reducing further crime and deterring people from recommitting according to an article, â€Å"Scholars have examined which types of sanctions are more likely to reduce recidivism and have found that punitive approaches such as conviction or jail do not significantly deter future incidents of DWI  (Taxman & Piquero, 1998; Wheeler & Hissong, 1988; Yu, 2000)† (Alhin). In this quote it explains that jail time, or convictions do not always work as a â€Å"deterrent† for the offender when he/she gets out of jail. Due to this, they will have to use other significant deterrent applications, or at least try them. They could use probation as a deterrent instead of putting everyone in jail. Putting everyone in jail causes a big overcrowding issue and some people they put in jail are not huge criminals, they may have just committed a minor crime. However, by putting them in jail they could â€Å"learn† how to be a criminal and when they get out, they could potentially commit crime. The article extends to explain how the deterrence theory could work in this situation, â€Å"Consistent with deterrence theory (Beccaria, 1764/1963), swift license sanctions such as suspension and revocation have been shown to reduce DWI recidivism (Ross, 1991; Yu, 1994; but see Yu, 2000), and less punitive, treatment-based sanctions can also reduce recidivism among drivers with an alcohol disorder (Taxman & Piquero, 1998)† (Alhin). This quote states that by using the deterrence theory, revocation has been proven to reduce DWI recidivism. It also says by using more â€Å"treatment† based corrections could help the offenders not recommit drinking and driving. If the offenders can receive help with drinking intensively, or get help with drinking and driving, this could keep people out of jail and also save lives by not having peo ple out on the road drinking and driving. Diversion has been around for a very long time, and over the years there have been many studies, researches, and experiments done to try and understand what the most effective way to make diversion programs work. There have been several people that have conducted studies to see what they could encounter on the subject of diversion. One group an author states was, â€Å"Kammer and Minor (1997) evaluated a program that intervened in cases of juveniles ages 11 to 18 years charged with status or low-level delinquent offenses and no prior record. The program was 16 months long and only handled 12 offenders at a time. Of the 86.2% (N = 81) who graduated, 67% were rearrested during the evaluation follow-up. Of the juveniles originally arrested for status offenses, those that recidivated were charged with delinquent acts† (Marsh 2005). This statistics are just from one study, but over half of the offenders were rearrested, so this complies that their study on diversion programs were not successful enduring that when juvenile offenders receive diversion, in their study over half were arrested again. However, an academic article states â€Å"Although much research has been conducted to test diversion methods, few have taken advantage of true field experimental conditions (Campbell, 1969; Severy & Whitaker, 1982). Unfortunately, utilizing true experimental designs in the juvenile justice setting can have serious political implications† (Severy & Whitaker, 1982). Yet the absence of a control group design prevents testing from a baseline. The methodology of the current project allowed the comparison of the groups to each other and the comparison of the different treatment interventions to a baseline control group† (Marsh 2005). In the quote it explains that when research is not done in the field, using expe riments with offenders could lead to trouble when it comes to trying to understand diversion and its effectiveness. This is an important part of research, because one is learning through the actual offenders and studying their ways of doing things. In addition the author states, â€Å"One of the most significant issues raised by diversion was the â€Å"net-widening† effect of this type of program. In an evaluation of 11 California diversion projects, Bohnstedt (1978) found that one half of the 3,871 clients served would not have been processed by the system if court diversion programs were available† (Marsh 2005). Another study conducted encountered juveniles and the use of tobacco. The juveniles that were caught using tobacco were given options of different punishments, â€Å"Juveniles cited for use of tobacco were given the option of going to court, paying a fine, or attending a single 2 ½-hour diversion course that discussed the harms of tobacco use† (Marsh 2005). Most of the juveniles chose to pay the fine instead of attending the class. The article intended that this study the juveniles that attended the class and the juveniles that paid the money had no change in behavior, or attitude. However, the juveniles that paid the fine, they were proven to have lower tobacco usage. With having this knowledge, one now would know that using the right kind of treatmen t is very help when doing research in diversion based programs, because if something is off, or missing it could through the whole experiment off. Another issue that was brought up is having diversion everywhere in the United States, because the overcrowding  in jails is one of the biggest, money rackets U.S. citizens and the government deal with. If diversion programs were offered everywhere then it could possibly cut down on the incarceration rates in the United States, â€Å"Treating youth in the community diversion is seen as a way to reduce further involvement with the juvenile justice system. The idea has been particularly intriguing because of its added benefit of relieving an overburdened judicial system† (Whitaker, Severy, & Morton, 1984, pp. 175-176) (Marsh 2005). If diversion was used more often and courts were able to keep more people out of jail by using diversion programs, it would cut down on the tax payers that pay for people to stay in jail and possibly help the people get rehabilitated. Diversion is a good idea for first time offenders and helps them steer clear of trouble, if they actually follow the rules and do not recommit any offenses. Diversion programs have been proven to help people, but it has also been proven to not show any difference in the offender’s actions. I believe that aging out of crime has a lot to do with juvenile offenders and even adult offenders. However, it is a personal choice whether, or not t hey choose to learn their lesson by completing diversion programs and move forward with their lives. References Ahlin, E. M., Zador, P. L., Rauch, W. J., Howard, J. M., & Duncan, G. D. (2011). First-time DWI offenders are at risk of recidivating regardless of sanctions imposed. Journal of Criminal Justice, 39(2), 137. Patrick, S., & Marsh, R. (2005). Juvenile diversion: Results of a 3-year experimental study. Criminal Justice Policy Review, 16(1), 59-73. Smith, Roger. Contemporary Justice Review, Dec2011, Vol. 14 Issue 4, p425-438, 14p; Abstract Taxman, Faye S.. Victims & Offenders, Jul-Sep2010, Vol. 5 Issue 3, p233-239, 7p; Abstract Walker, Samuel. 2011. Sense and Nonsense about Crime, Drugs, and Communities. Wadsworth Cengage Learning. Seventh Edition. 251-263.

Has the Time Come to Legalize Drugs? Essay

Legalization of drugs — long an issue championed mainly by fringe groups — is rapidly moving to the mainstream in Latin America. Last week’s surprise statement by former Mexican President Vicente Fox in support of â€Å"legalizing production, sales and distribution† of drugs made big headlines around the world. Fox, a former close U.S. ally who belongs to the same center-right political party as President Felipe Calderà ¯Ã‚ ¿Ã‚ ½n, rocked the boat at home by indirectly criticizing the very premise of Calderon’s all-out military offensive against Mexico’s drug cartels, which has cost 28,000 lives since 2006. Calderon immediately responded that he opposes legalization of drugs, although he has opened a dialogue with political parties about the future of his country’s anti-drug policies. The left-of-center Party of the Democratic Revolution announced that it supports â€Å"de facto legalization† of drugs. Fox’s statement, first published Saturday in his blog, went far beyond a 2009 joint declaration by former Presidents Fernando Henrique Cardoso of Brazil, Ernesto Zedillo of Mexico and Cesar Gaviria of Colombia. In that statement, the three former leaders questioned the effectiveness of the U.S. war on drugs and proposed de-criminalizing possession of marijuana for personal use. While the three centrist former presidents’ proposal amounted to not prosecuting people for consuming marijuana, Fox’s proposal calls for legalization of all major drugs — the whole enchilada. In an extended interview, Fox told me that he is making his proposal because drug-related violence in Mexico has reached intolerable levels, and because the experience of other countries such as the Netherlands has shown that allowing drug sales has not significantly driven up drug consumption. â€Å"Prohibitionist policies have hardly worked anywhere,† Fox told me. â€Å"Prohibition of alcohol in the United States [in the 1920’s] never worked, and it only helped trigger violence and crime.† Since possession of small amounts of marijuana has already been decriminalized in Mexico, what’s needed now are bolder steps, such as legalizing drug production and using the taxes it generates to fund anti-drug education programs, he said. â€Å"What I’m proposing is that, instead of allowing this business to continue being run by criminals, by cartels, that it be run by law-abiding business people who are registered with the Finance Ministry, pay taxes and create jobs,† Fox said. Fox called for a reversal of Calderà ¯Ã‚ ¿Ã‚ ½n’s decision to send the army into the streets to fight the drug cartels because â€Å"the army is not prepared to do police work, and we are seeing day to day how the army’s image is losing ground in Mexico† as a result of this war. Why didn’t you come out with this proposal when you were president? I asked. Fox responded that legalization was often discussed in Cabinet meetings during his presidency, but that the urgency of such a measure has increased since â€Å"because of the extraordinary cost we are paying in a drop in tourism, a drop in investments and a lack of attention to education and health.† In a separate interview, White House drug czar R. Gil Kerlikowske told me that drug legalization is a â€Å"non-starter† in the Obama administration. Kerlikowske disputed the idea that alcohol prohibition drove up crime in the United States in the 1920s, arguing that there were no reliable crime statistics at the time. And he rejected the notion that there has been no major increase in drug consumption in the Netherlands. â€Å"In the Netherlands, consumption did go up. In fact, the Netherlands has been in the process of closing down hundreds of the marijuana cafes that had been in existence because of the problems that are occurring,† he said. My opinion: I’m not convinced that a blanket legalization of drugs would work because government regulation of the cocaine and heroin businesses in countries that already have high corruption rates would result in greater official corruption. On the other hand, it’s clear that after four years of Calderà ¯Ã‚ ¿Ã‚ ½n’s U.S.-backed war on drugs, the cartels are smuggling more drugs, killing more people and becoming richer. Perhaps the time has come to take a step-by-step approach and start a serious debate about passing laws that would regulate legal production of marijuana, alongside massive education campaigns to discourage people from using it. Then, we could see who is right and consider what to do next. (c) Miami Herald. Miami Herald content is the intellectual property of Miami Herald. Any copying, republication or redistribution of Miami Herald content is expressly prohibited by federal law. Miami Herald shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Source: http://www.miamiherald.com/2010/08/12/1772336/has-the-time-come-to-legalize.html Commentary Number 1 The question raised in this article is a complex one. Mexican President Felipe Calderà ¯Ã‚ ¿Ã‚ ½n’s hesitancy at enforcing drug-legalization policies is understandable, as the legalization of drugs in a drug-war-torn country such as Mexico can be beneficial or adverse from an economic point of view. One might argue that such measures would bring about a series of negative externalities on the public such as harmful health effects. A majority believes that the legalization of drugs will increase crime rates; most people under the influence of narcotics are prone to violent crimes. However, the reasons ex-President Vicente Fox has for de-criminalizing drugs appear to outweigh the adverse effects. The law of demand states that as price falls, the quantity demanded rises, and as prices rise, quantity demanded falls. This illustrates that legalization of drugs will reduce the profit criminals make. Every time the government takes hold of a drug dealer and the products he is selling, supply of the drug to the illegal drug market is reduced. If there is a reduced supply, there is an increase in price of the good. Drug-addicts are helpless, and thus they will buy the drug for the higher price, giving the criminal dealer more profit. Every time the government thinks it is winning its drug war, it is actually losing; the illegal state of these drugs aids the dealers, harming the government. Figure 2 Price elasticity of demand of a good is a measure of the extent to which the quantity demanded of a good changes when its price changes. As is illustrated on Figures 1 and 2, due to the fact that drugs are a necessity to drug-addicts, they are willing to buy pretty much the same quantity of the drug at any price, thus making the price elasticity of demand of drugs inelastic (when the quantity demanded remains similar as the price changes). If drugs are legalized, the government can benefit from its demand price inelasticity by taxing on drugs, and thus making more profit that can be allocated accordingly. Drug consumers will not care whether they are paying more than they should be and will buy the legal drug at the price it is sold legally. Other people will notice why the drug is inelastic, and will avoid them due to its addictive dangers. Thus, the absence of undercover drug dealing will show people the dangers of drugs and lead to consumers and producers providing less of the drug once the government starts taxing, thus leading to a smaller population using them. The most beneficial aspect of drug legalization in Mexico would be taxing on the drug. As demand for drugs is inelastic, the tax revenue raised will be large. Additionally, the deadweight loss (fall in total surplus consumers and producers make) will be smaller as the consumers will not consume less at first even though producers will produce at a less quantity. These are shown on Figure 3. The consumers will pay more taxes as they desperately need to buy the drug, and eventually will try and consume less when they become financially diminished. They will seek rehabilitation, and thus shrink the market for drugs. If the government correctly uses the revenues raised by taxing on drugs to promote healthcare and drug rehabilitation, the Mexican economy can cause a decline in overall drug sale and use. Figure 3 In conclusion, Mexico’s ex-President Vicente Fox should proceed with convincing the government to legalize drugs, as this measure will not only reduce consumption and production of these harmful products, but also promote society and the economy by raising revenue to enhance health and other aspects of the economy that need betterment.

Ba Finance

7BSM1006 Managing Financial Value Drivers Coursework Semester A 2012 Assessment weighting 60% Bellingham plc Arthur Scroggs was a farmer. His family has owned and farmed 500 acres of prime land in the Vale of Aylesbury for four generations. In the mid 1980's small farms were finding the financial climate difficult with falling farm incomes and much talk of putting farm land to â€Å"alternative use†. By 1985 Arthur had already sold his dairy herd to focus on cereal production when a fortuitous meeting with Lucy Bellingham at a business conference led him to reconsider the future of the family farm.Bellingham is a designer of bespoke fitted kitchens who had a business plan but little capital. The plan was to manufacture top quality fitted kitchen furniture and establish design studios/showrooms in high income areas. Having recently sold his dairy herd, Arthur had enough capital to fund the new business and also a number of large barns and outbuildings suitable for manufacturing the kitchen units subject to refitting and planning consent being obtained. Lucy's business plan was so convincing that Arthur decided to get out of farming altogether (by leasing his arable land to a local co-operative) and focus on developing the new business.From this small beginning grew the now publicly quoted company of Bellingham plc. Initially, showrooms were established in Beaconsfield and then Kensington. Demand for their kitchens was brisk and â€Å"Bellingham Bespoke Kitchens† expanded rapidly but remained a partnership. The firms clients are mainly celebrities from the entertainment world and the cost of a Bellingham Bespoke Kitchen is now ? 40,000 – ? 150,000 or more. The firm was restructured as a limited company in 1990 and subsequently experienced rapid growth until 1999. In that year the then directors decided that the business had reached the limit of development in it's present form.Future development required large-scale expansion of production fa cilities in order to provide the range of materials, furniture, quality and prompt delivery required by their discerning clients. This in turn needed an injection of capital that the directors were unable to generate themselves. The conviction that there was much money to be made from â€Å"quality fitted kitchens† † had been vindicated. They investigated a number of possibilities deciding eventually to expand production facilities by purchasing a modern production unit on an industrial estate in Aylesbury.The expansion was funded by a stock market floatation and raising the necessary capital in the name of Bellingham plc. As the market grew and to keep abreast of new production technology, the directors agreed to reverse the maxim so dear to the heart of the founders, Arthur and Lucy; â€Å"neither a (long-term) borrower nor lender be. † They financed updating of equipment and premises by means of issuing debentures. It is now October 2012 and the present direct ors of Bellingham plc believe that the long-term success of the company lies in future international diversification and expansion.They consider that the most beneficial action they could take is to investigate the acquisition of a subsidiary in the USA. The newly-appointed finance director, Bill Moneypenny, agrees with this opinion but insists that the company must first appraise its own current position and if necessary, make changes to strengthen its existing financial situation before embarking on new plans. He is particularly concerned that the company should preserve adequate liquidity and finance its assets in a beneficial manner.He is also concerned that too much emphasis has been placed on â€Å"pandering to the whims of the rich and famous† and not enough on running an efficient business operation. Lucy and Arthur still retain 30% of Bellingham's equity and other long-standing directors own a further 20%; a change of control is unlikely to be welcome. During the las t two years, the company has updated it's design, production and showroom assets and, in what has been a difficult year, has been able to maintain sales and profit growth (see Bellingham's accounts in appendix 1).There has been a great deal of uncertainty about world economic growth and stock markets have been extremely volatile resulting low returns. However the firm’s ordinary shares have made good progress during the year. Ordinary share dividends have achieved substantial growth over the last two years although this rate of increase is not expected to continue. Ordinary dividends have grown at an average rate of 14% per annum over the past 10 years and this rate is a more realistic growth rate for future dividends. The present market prices for Bellingham's shares and debentures are: ?1 Ordinary shares? 7. 02 ex div ?0. 50p, 6% Pref shares? . 55 ex div 7% Debentures 2016? 100. 51 ex interest Any new venture would be expected to achieve a return on capital employed in line with that experienced recently by Bellingham plc. The finance director favours a payback period of 5 years. Bellingham would therefore need to agree a realistic acquisition price for such a new venture and its future cash flows in order to determine whether these criteria could be met. Although a number of investment projects are being considered, the main proposal currently being investigated offers an expansion into the US prime-property market which is forecast to grow faster than the UK market.Bellingham's finance director has already calculated the trends in the financial ratios of American Creations, an unquoted US company, from its unaudited annual accounts (see appendix 2) and has concluded that the proposal is now worthy of further investigation. American Creations is a family-owned venture requiring further capital to repair it's balance sheet after making losses on a property development in Nevada from which it has now withdrawn. Profits have suffered in the last two yea rs due to write-offs associated with this development.The existing owners feel that the firm’s future lies in establishing wider international links and the retirement of senior family members, leaving the younger members active in the management of the firm. They are therefore considering selling a controlling interest of 60% to a suitable company. The firm has been established for 23 years, and is well respected in business circles. The average age of its fixed tangible assets is 3 years. The directors have indicated that they may accept part payment in Bellingham shares subject to negotiation. The firm’s nominal share capital is $2. m, and the directors have indicated that they value the firm at five times the year 2010 net profit. They consider this to be the firm's â€Å"normal† level of profit excluding the â€Å"extraordinary† effects of the Nevada development. As the firm is at present family owned and run, there is no available price/earnings rat io. P/E ratios for the only two publicly-owned companies in the same business sector, Harvey Wilkinson Designs plc and Cucci Lifestyle plc, are currently 10 and 8 times respectively although both of these firms, unlike Bellingham, operate internationally. Wilkinson has grown at a similar rate to Bellingham.The dividend yields of these companies have been as follows: WilkinsonCucci Year to 31 December 2011 8. 1% 7. 25% 2010 7. 2% 6. 9% 2009 5. 3% 5. 95% American Creations has its own manufacturing facilities and operates throughout the USA and Caribbean with design offices in New York, Miami, Los Angeles and Colorado Springs. Their main business, which is thriving, involves complete home furnishing and interior design for wealthy clients. In addition, the firm has a real estate office in each location and is thus able to offer a complete property service.The value of properties handled by the real estate offices is typically $5m – $20m. Bellingham is interested not only in ext ending its operations internationally but particularly in the possibility of diversifying into the real estate business. Whilst well aware of the existence of a number of competitors, the directors feel that there is a ready market in the US for their established name in terms of design flair, service and products. After discussions with the directors of American Creations, Bill Moneypenny has produced the following forecast.Under average economic growth conditions, the American Creations operating forecasts (in $*1000) for the next five years are based on the following: Income:from Sales: $7500 in 2013, rising by 12% per annum for the foreseeable future. from real estate sales commissions: $2850 in 2013 increasing by 15% per annum for the foreseeable future. Manufacturing variable costs: Labour: $1250 in 2013, expected to increasing by 8% per annum. Materials: $3800 in 2013, expected to increasing by 5% per annum. Fixed costs excluding depreciation:Manufacturing O/H: $2065 in 2013, increasing by 5% per annum. General O/H: $1850 in 2013, increasing by 2% per annum. Depreciation:Factory, machinery & vehicles: $500 per year. Office/Design Studio fixtures: $200 per year. The beta of Bellingham plc is believed to be 1. 65 , the risk-free rate of return is 5. 5% and the return for the last year on the FT All-share index is 2%. UK corporation tax is currently 32% payable 9 months after the end of the accounting year in question (you may assume for the purpose of this case that accounting profit and taxable profit are identical. )Bellingham's directors estimate that the after-tax profits of American Creations could be allocated as follows: 70% as retained earnings and 30% as dividends. This has been the pattern under the under the present ownership. There would be no restriction on the transfer of the appropriate share of these dividends to the UK. The US corporation tax rate applicable is 20% payable in the year in which the profit arises. There is no double taxatio n of profits of US origin in the UK. (For the purpose of this case, ignore the possibility of any withholding taxes and the effects of foreign exchange risk. It is considered possible that, as the US economy develops further, even higher wages than those forecast may be demanded by the workforce. Required: Evaluate the American Creations proposal on behalf of Bellingham plc, supporting your arguments with relevant theory and calculations and indicating any non-financial matters you feel should be taken into consideration. Your report should consider the following areas: 1. An analysis of Bellingham's current position using relevant financial ratios. You should show the calculation of the ratios and provide interpretation of the results. . Calculation of Bellingham's cost of capital, using alternative methods and arriving at the most appropriate figure. 3. An investment appraisal of the American Creations proposal assuming the valuation suggested in the case, using a variety of metho ds and evaluation of the results. 4. A sensitivity analysis of the proposal and interpretation of the results. 5. Calculation and discussion of alternative valuations for acquiring the share in American Creations and how these would impact on the investment appraisal. 6.A discussion of the various available methods of financing the acquisition and consideration of which is the most appropriate. Your calculations and arguments should be supported by relevant theory, with evidence of wide reading around the subject. You should provide a complete bibliography with appropriate referencing in your report. Submission requirements: Your answer should take the form of a written report of approximately 2500 words excluding appendices and the reference list. Deviations from the word count exceeding plus or minus 10% will attract a penalty of 5%. The hand-in deadline for submission is 23. 0 on 25th November 2012. Submissions up to 24 hours late will attract a 10% penalty whilst those beyond 24 hours but less than 1 week late will be capped at 40%. Reports submitted more than one week late will attract a mark of zero. Submit one electronic copy via Studynet. This is an individual assignment and the report submitted should be entirely your own work. Appendix 1:Bellingham plc| | | | | | | Abridged Trading, Profit & Loss Account for the year ended 30th June 2012:| All amounts are in thousands of pounds sterling| | | | | | | | | | | | | | | | | | | 2012| | 2011| | 2010| |Sales| 9606| | 7564| | 6100| | Production Cost| 4034| | 3101| | 2240| | Gross Profit| 5572| | 4463| | 3860| | | | | | | | | Selling Expenses| 1467| | 1250| | 1080| | Installation Expenses| 1689| | 1300| | 980| | Administration Expenses| 960| | 630| | 597| | Operating Profit| 1456| | 1283| | 1203| | Debenture Interest| 53| | 53| | 53| | Profit Before Tax| 1403| | 1230| | 1150| | Corporation Tax| 449| | 394| | 368| | Profit After Tax| 954| | 836| | 782| | Dividends| 341| | 280| | 220| | Retained earnings| 613| | 556| | 562| | Balance Sheet at 30th June 2012:| | | | | | | | | | | | |Fixed Assets (net):| | | | | | | Land & Buildings| 2300| | 2400| | 2500| | Plant & Machinery| 1700| | 1186| | 552| | Fixtures & Fittings| 700| | 600| | 402| | Motor Vehicles| 185| | 140| | 105| | Office equiptment| 250| | 185| | 100| | | 5135| | 4511| | 3659| | Current Assets:| | | | | | | Stocks: Raw Materials| 216| | 208| | 182| | Work in Progress| 200| | 205| | 190| | Finished Goods| 150| | 128| | 97| | Debtors| 1775| | 950| | 595| | Bank/Cash| 230| | 136| | 104| | | 2571| | 1627| | 1168| | Current Liabilities:| | | | | | | Trade Creditors| 1190| | 788| | 270| |Corporation Tax| 449| | 394| | 368| | Final Dividend| 171| | 140| | 110| | | 1810| | 1322| | 748| | | | | | | | | Net Current Assets| 761| | 305| | 420| | Net Assets| 5896| | 4816| | 4079| | | | | | | | | Long-term Liabilities:| | | | | | | 9% Debentures 2016| 750| | 750| | 750| | | | | | | | | | 5146| | 4066| | 3329| | | | | | | | | Shares & reserves | | | | | | | ?1 ordinary shares| 1000| | 1000| | 1000| | 6% Preference shares of 50p ea,| 500| | 500| | 500| | Retained pr for yr| 613| | 556| | 562| | Profit & loss| 3033| | 2010| | 1267| | Shareholders funds| 5146| | 4066| | 3329| |

Yonyous Business Operations in the Software Industry Case Study

Yonyous Business Operations in the Software Industry - Case Study Example The recession led all the software companies to change their business strategies. Likewise, Yonyou also developed its own strategies to sustain in the changing market environment. The investment in the R&D to promote product development eventually worked in company’s favor towards its expansion. Yonyou collaborated with companies like IBM and Atos to develop the cloud computing, which proved to be a step towards the future of IT. Yonyou Software Co. Ltd., headquartered in Beijing, China, is an accounting and ERP software company. It operates in mainland China, Japan, Hong Kong and Thailand. Founded in 1988, Yonyou has been ranked as no. 1 management software provider in China. The company excelled in Chinese markets as it could understand the Chinese management culture closely. In order to streamline its business, the company also outsourced its consulting and implementing services. The information technology industry went through several changes in last five years and all the companies had faced severe downturn or even ceased to exist. However, Yonyou has managed to adapt to the changing environment and sustained in the competitive industry. The growth of management software had slowed down after the great recession and economic crisis in 2008. The management software market in Asia had a much higher growth rate in 2011, although being a small portion of the global market. The manpower and materials cost had increased within the last decade in China, as a result, the companies were bound to adopt the management software system in order to avoid inefficient operations and management. Although, as compared to other developed countries, China still stands behind when it comes to investment in management software. China mentioned in the 18th national congress, that it will follow its own way to implementation of information technology on a national strategic level.

Mother Tongue by Amy Tan Essay Example | Topics and Well Written Essays - 1250 words

Mother Tongue by Amy Tan - Essay Example Given the portrayal of language skills by Tan, one cannot help but agree with the authoress. The bonds associated with language and the resulting personalized recognition is all too common in everyone’s life. One major issue faced by immigrant families is that it may not be possible for all members of the family to speak flawless English as indicated in the essay by Tan. In order to shed light on this concept, she quotes a story narrated by her mother. The story itself was trivial but the noteworthy point was her mother’s grammatical errors. The content was quite hard to decipher due to those grammatical mistakes; however, the authoress asserts that her mother apparently had an excellent grip over English. As a child, her mother’s â€Å"broken† English mortified Tan. She considered that imperfection of speech actually depicted imperfection of thoughts. On the other hand, her mother encouraged her to think distinctively. Years later, she appreciates the ess ence of unique thinking and academically studies English. It was at this point in time that she recognized the meaningfulness and worth of being able to use various types of English Language, and started appreciating her mother’s potential. Their broken English symbolizes a language of intimacy between them, where they can speak anything grammatically wrong to covey something special. This newfound love and knowledge compelled her to write about her mother, â€Å"I wanted to capture what language ability tests can never reveal: her intent, her passion, her imager, the rhythms of her speech, and the nature of her thoughts†. Tan was so inspired by her mother’s heritage that she resolved that her mother should be the first reader and critic. She states at the end, â€Å"I knew I had succeeded where it counted when my mother finished reading my book and gave me her verdict: so easy to read†. All of us undergo similar experiences, carrying hidden treasures wit hin us and sometimes being away or detached from our roots enables us to appreciate the true worth of those treasures. Tan's fundamental purpose in writing is to produce texts, which are comprehensible for a ‘common man’ like her mother. I was touched and captivated by the true to life context of Tan’s work. It is primarily directed at immigrant families and students who use English as a second language for studying and the like. However, for the authoress, her mother is the most imperative target. She appears to have contemplated extensively on the power and role of language and expresses her perspective through this essay. She maintains that the importance of a language does not lie in its being broken or perfect. She emphasizes familial languages should be protected, preserved. English enabled her to gain knowledge, recognize the world around her; hence, she considered it her mother tongue. The tone of the authoress is sentimental as the essay revolves around her personal experiences. Thereby, several statements and reviews based on her past are illustrated as she writes in the start, â€Å"I cannot give you much more than personal opinions†. It appears that the authoress has an additional objective, to express gratitude.

Finance final examination questions Essay Example | Topics and Well Written Essays - 1250 words

Finance final examination questions - Essay Example This change causes a shift in a company's cost structure which will result in an increase in Fixed Cost and a reduction in Variable Cost. For example, in period 1 Company A employs unskilled labor which cost $10.00 per hour. However because of a cost cutting exercise by the company, the organisation decides to purchase a new machine in period 2, which will enable Variable Labor cost to be reduced by 75%. The new machine will cost $50,000 and will have a useful life of 10 Years. The following occurred: Period 1 - 1,000 Hrs $ Variable Cost - Labor Cost ($10.00 X 1,000 Hrs) 10,000.00 Fixed Cost 0.00 Total Cost 10,000.00 Period 1 - 1,500 Hrs $ Variable Cost - Labor Cost ($10.00 X 1,500 Hrs) X 25%) 3,750.00 Fixed Cost - Depreciation ($50,000/10 years 5,000.00 Total Cost 8,750.00 Conclusion An increase in a company's Fixed Cost in relation to its Variable cost (as in the above example) will ultimately lead to a fall in Total Cost. This can effectively be determined using CPV

Organizational Culture and Values Essay Example | Topics and Well Written Essays - 250 words - 1

Organizational Culture and Values - Essay Example This therefore requires expanded knowledge base which we cannot get anywhere else except from others who are more experienced than us. A nursing professional must be a strong team builder besides being an efficient problem-solver. Being affiliated to likeminded bodies will enable a nursing student or a nursing professional to develop these important skills (Nagelkerk, & Huber, 2006). Networking with other professional associations improves our management and leadership skills which are very vital in a nursing leader. Going beyond the borders of our nursing careers to affiliate ourselves with other bodies shows the strong focus and commitment that a nurse possess. Once we show such strong focus and commitment, being trusted will be a prerequisite to our career. As we gear towards our career advancement, we must strive to develop a strong network through joining professional associations aimed at inculcating positive traits required by employers. We should ensure that these affiliations are included in our resume for the potential employers to see. It is evident that most employers will be attracted to one who has diverse experience derived from personal affiliations and networks (Barnum, & Kerfoot, 1995). Medical organizations with a leader who has strong links and networks will definitely widen its roots. For us to join such organizations sooner or later, we must have strong personal affiliations and extensive networks for our career

Case consruction studies for civil engineering Essay

Case consruction studies for civil engineering - Essay Example Twenty-four others were injured, including 11 first responders eight remained hospitalized, officials said. (FOXNEWS Monday, March 17, 2008). This was just another heart wrecking and most unwelcome accident that happened in the construction industry. In an era of highly advanced science and technology as of now, we expect that deaths caused due to accidents at work sites, should be the least ever but survey reports and statistics show an increase directly proportional to the advancement in science and technology applied in the construction and civil engineering sector worldwide. Statistics from the UK Health and Safety Executive show that on average one or two people are killed every week as a result of construction work. Occupational ill-health, which can accumulate over time, accounts for further loss of life. What is health and safety In simple terms, health and safety is about identifying risks and eliminating or controlling them to prevent accidents and occupational ill-health. Even though it's inevitable that no job is free from any occupational hazards, measures can adopted to minimize the risks by eliminating or controlling the factors that give rise to unnecessary ones. What are the risks Statistics show that people falling from heights and objects falling from heights and strik... onal health problems arise from chemical hazards, such as liquid, dusts, gasses and fumes, or physical hazards such as cold, heat, noise, vibration, ionizing radiation, compressed air, lasers and manual handling. Why are good health and safety processes important Accidents and ill-health have both a human cost and a financial cost. Lost time and materials, higher insurance premiums, compensation claims and possibly legal costs are the most obvious potential impacts. There are also indirect costs in terms of potential damage to reputation which can make it harder for a company to attract business or new employees or for a project to obtain funding. Good health and safety processes demonstrate respect for people whether they are employees, clients or local communities hosting a construction project. Long-term health effects are usually slower to be realized but the costs and long-term implications can be far more significant than accidents and should not be underestimated. Construction has one of the highest rates of accidents and incidences of ill-health of all employment sectors. High risk activities, poor training and inadequate safeguards all contribute. It need not be this way. There are measures that can be taken to minimize the risks. Constructing a health and safety policy and program: This is a simple but effective strategic framework: 1. POLICY 2. ORGANISING 3. PLANNING AND IMPLEMENTATION 4. MEASURING PERFORMANCE 5. REVIEWING PERFORMANCE Policy Every organization needs to draw up a statement of policy on how it will manage health and safety, including how responsibilities will be allocated. The policy should take into account the nature of the construction activities involved and the size of the organization. Organizing An adequately resourced and

Create a Code of Ethics for a fictitious company for this assignment Coursework

Create a Code of Ethics for a fictitious company for this assignment - Coursework Example The resort is just 5 km away from the beautiful orange plantation. We provide elegant luxury with all the modern comfort in accommodation. Wild Orange resort has 50 individual suites with 2 specialty restaurants delicate to pure south Indian food, Aruvi and the Seasons multi cuisine restaurant , Teyla the a coffee shop and a library bar, called Vajra, which offers finest beverages and best cigars. We provide room service facility and 24 hr laundry. Our priority is complete satisfaction of our guests. We want every guest at Wild Orange resort to leave with an unforgettable experience. We believe in our people and we aim at the care of our employees as of our guest. We also follow to give the best training to our employee’s to make the vision of wild orange resort real. In our business Guest is our priority, then our team members and at last profit, this is the driving force of Wild orange resort. Mission Statement Our mission statement is directed towards our guests, associates and investors. Guests- We believe in uncompromising guest service by exceeding the guest expectations with high levels of service standards. Associates – We respect our associates as we do our guests and therefore work towards their growth and development. Investors – We are committed to provide maximum returns to our investors through our careful and dedicated business practices. Director’s message Dear Associates, Wild orange resort has witnessed incredible success over a period of time, from its humble beginning to nation’s most famous tourist resort. The achievement of this level was possible because we believed in very simple principles and ideas such as personalized guest service, Optimum utilization of nature’s gifts, and care for our employees. Wild orange resort will see tremendous growth from now on where the company will be transformed to a hotel chain with new resorts opening. In order to impart the growth history we had developed a bu siness code of conduct which each and every associate is bound to follow. Let’s have a pledge to follow the code of conduct, for the success of our company. Sincerely Executive director Nalinaj Raveendran Guiding Principles: Wild Orange Resorts have strong guiding principles. As far as wild orange resort is concerned, it has a strong foundation of its values and code of ethics. We believe in providing our guest with personal care and attention. Each guest who stays at Wild orange resort must remember his/her days in the rest of their life. Detailed and elegant service is the priority of our resort which makes it an unforgettable experience. Our people are valuable and they are nurtured to deliver their best towards uncompromising guest satisfaction. Our training program aims at developing professional skills of the employees which ensure better standards of service and also motivation for employees. We are committed to the nature as we are located in one of the most precious and beautiful locations on earth. We practice eco friendly products and services which contribute to nature and we help the local community. Core value – The Company that mutually represents associates and Guests. Purpose of Code: Wild orange resort plans to continue its growth trend in future too. For this trend to be continued, we need a set of strict time tested and proven code of business

Security after September 11 Assignment Example | Topics and Well Written Essays - 750 words

Security after September 11 - Assignment Example Also, following the Cold War with Russia, the U.S. government could conclude almost with a precision that it had contained all its enemies. However, this was far from reality as sooner than later it terrorists struck. From bombings in U.S. embassies found in East Africa to the deadly attacks at World Trade Centre and Twin Towers, it became evident that U.S. security details had to undergo considerable reforms (Bolton, 2008). In this paper, I present some of the security changes that took place following September 11 incident and their impacts on my lifestyle. Immediately after the attack, it was evident that there was a lot of security laxity at the airports. This is because the suicide bombers who hijacked the ill-fated planes successfully manoeuvred the airport security personnel to carry out the attacks. Congress responded to this by passing Aviation and Transportation Security Act, which resulted in the creation of Transportation Security Administration. Before the 9/11 incident, security issues within the airports was handled by respective airports, which also hired the services of private security companies (Pinkowski, 2008). TSA got into action almost immediately by implementing a set of procedures such as stricter guidelines on passenger and luggage screening. As at the moment, only ticketed passengers are allowed to go through security. The latest set of technologies have also been adopted at the airports to screen for weapons and any other object that could be a threat to passengers aboard the plane. Furthermore, liquids were ba nned and everybody is expected to remove their shoes while undergoing screening. Another change that happened involved tightening the immigration procedures. Unlike before the 9/11 incident, it was somehow easier for immigrants from all over the world to gain access to the United States of America. However, following the attacks, Congress responded immediately be demanding that the immigration department limit such immigration.  Ã‚  

Professional Development Essay Example for Free

Professional Development Essay Nurses are the largest work force in the healthcare industry. The increasing demands for nurses opt to increase the quality of care given by these nurses. The Institute of Medicine (IOM, 2010) states that patients â€Å"deserve the care that centered on their unique needs and not what is most convenient for the health care professionals†. Nursing practice has changed significantly since the beginning of the profession secondary to increased demand for high quality care given and for the safety of the nurses and the patients. In order to overcome these challenges the Institute of Medicine (IOM) created a report that served as a foundation for the future and advancement of nursing. IOM reported that, â€Å"Nurses have the opportunity to play a central role in transforming the healthcare system to create a more accessible, high quality, and value-driven environment for patients†. (Institute of Medicine [IOM], 2010, pg. 85) The IOM report, †The Future of Nursing: Leading Change, Advancing Health†, emphasized on different topics with regards to the future of nursing especially the importance of nursing education, nursing practice and the roles of nurses as a leader in the healthcare system. The goal of nursing education is for the nurses to be prepared to face the increasing needs of a diverse population of patients and to deliver a safe and quality patient care. In addition, the transformation of nursing education is encouraged to prepare new nurses to work hand in hand with other healthcare professionals in different settings. These changes are needed because of technological advancements, older patient population and increasing complexity of the patient conditions. Care in the acute care setting and outside the hospital has become more complex as well. Nurses have to be trained on flexibility and ability to take in more roles than what is expected when they graduate nursing. With this note, advancement in the education curriculum and changes are needed to compensate for these demands. Nurses should be able to have evidence-based practice care, collaborative skills with other professionals, be proficient with the new technologies and even more skilled on the acute and chronic healthcare settings. Most hospitals are teaching hospitals and require more BSN graduate nurses  in their workforce. The IOM has a view to increase BSN nurses working in hospitals from 50% to 100%. In spite of this view, IOM set a goal of having BSN nursing percentage of 80% by 2020. This is â€Å"necessary to move the nursing workforce to an expanded set of competencies, especially in the domains of community and public health, leadership, systems improvement and change, research and health policy†. (IOM, 2010, pg. 173) In addition, having a BSN degree is a good foundation for nurses to advance to a higher education, APRNs and Doctorate levels, that will in turn advance nurses to research, faculty nurses to teach future nurses, ability to participate in creating healthcare policies and leadership roles. IOM also encourages having bridge programs from RN to BSN and having a residency program that will allow nurses to gain more skills, experience and knowledge and alleviate the stress around new nurses that are being thrown out of the real world without enough exposure and understanding of the profession. There are plenty of barriers in accomplishing these goals but with proper incentives, motivation and encouragement that are given to nurses, it is not impossible to have a better future in nursing education and have more educated and advanced nursing workforce in our society today. IOM also emphasized the importance of advancing the nursing practice to the community and not just concentrate in the acute care setting due to the increasing needs of the population and changes in the healthcare system. The outdated policies governing nursing scope of practice is a hindrance to the advancement of nursing practice and because of this patients are limited to access a better quality of care. IOM stressed on their report that a necessary alteration in nursing practice is needed to provide patient-centered care; deliver more primary as opposed to specialty care; deliver more care in the community rather than the acute care setting; provide seamless care; enable all health professionals to practice to the full extent of their education, training, and competencies; and foster inter-professional collaboration. (IOM, 2010, pg. 86-87) Nurses are encouraged to pursue their education to Advanced Practical Registered Nurses (APRN) due to a shortage of primary care professionals in the acute and mainly in the community healthcare setting. APRNs are knowledgeable, well trained and proficient enough to provide safe and high quality of care without the supervision of a primary doctor. IOM believes that changes in the regulations and expanding the scope of practice of nurses and of APRNs are necessary so that they can have the ability to practice and make decisions more independently. â€Å"The committee believes all health professionals should practice to the full extent of their education and training so that more patients may benefit†. (IOM, 2010, pg. 96) Again having bridge programs and residency programs for new nurses will help with the advancement of nursing practice. Redefining the roles and extending the scope of nursing practice is highly recommended by the IOM for the future of the nursing profession and to keep up with the evolution of the healthcare environment. Another vision that the IOM has is nurses as leaders in healthcare. It is time for nurses to move forward from bedside roles and start being active as leaders and partners with other healthcare professionals in delivering high quality care to patients. Together with the changes of nursing education and nursing practice, nurses as leaders are required to finally reach the goal of an advanced healthcare system. IOM’s vision â€Å"specifically challenges nurses to demonstrate full partnership with physicians and other healthcare professionals in redesigning U.S healthcare.† (Porer-OGrady, 2011, pg. 33) in addition the IOM â€Å"report suggests that the nursing profession must produce leaders at every level of the system and accept key leadership positions in policy, politics, organizations, and practice.† (Porer-OGrady, 2011, pg. 33) Today’s advancements in technology, nurses have an important role in research and they assist in developing evidence-based practice care to maintain safety. Nurses are the main caregivers and they understand very well the healthcare process. Nurses also play a vital role in delivering quality patient care through facilitation, coordination and making sure everything is at ease. So it is imperative that nurses be involved in policy making and provide strategies to improve care delivery and ensure quality  care. With these expectations put into nurses, it is every nurse’s responsibility to advance in their career, through education, be very well rounded with competencies and be active partners and be future leaders in the healthcare system. In conclusion, IOM has a very broad insight and goals with regards to the future of nursing. In order to achieve these goals, the importance of advancing nursing education and practice are emphasized as well as having more nursing leaders in the healthcare system. Having more BSN graduate nurses in the acute care settings and having more APRNs extending their services to the community is going to facilitate the advancement that the IOM views. Changing policies and extending the scope of practice for nurses to avoid limiting their abilities to practice and taking advantage of the nurse’s full capabilities is another goal that the IOM envisions. Lastly, nurses are seen more involved as leaders for a successful reform and in turn provide a better quality and safe care to patients. References Porer-OGrady, T. (2011). Future of Nursing Special:Leadership at All Levels. Nursing Management, 32-37. Retrieved from http://www.nursingcenter.com/lnc/journalarticle?Article_ID=1163290 The future of nursing: leading change, advancing health. (2010). Washington, D.C.: The National Academies Press. Retrieved from http://www.nap.edu/catalog.php?record_id=12956

Floods and subsequent death Essay Example for Free

Floods and subsequent death Essay Hurricane Katrina formed in the United States in the year 2005, causing floods and subsequent death many people. It is estimated that more than 1800 people lost their lives due to the hurricane. This data makes it the worst in the history of the United States since the year 1928. It is considered to have been the hurricane most costly and deadly in the history of the U. S and was considered a natural disaster. Among the affected places is St. Rita’s nursing home which has let to the trial of the owners Sal and Mabel Mangano. The nursing home was situated in New Orleans in St Bernard parish. It has been build 20 years before the hurricane struck. This home was situated in a depression in the ground. The approximate number of residents of the nursing home was 65 and out of these 35 of them died when the hurricane struck. This has led to the indictment of the owners the Manganos, after investigations were done on deaths at nursing homes and hospitals. Their trial was for negligent homicide where it was alleged that they willfully caused the deaths of 35 people by not evacuation them and also tying them to their beds. However I beg go differ with these allegations and they should not have been convicted for negligent homicide. Nursing Home Establishment Sal and Mabel Mangano were the owners so St. Rita’s nursing home having built it 20 years before the hurricane Katrina. The area where they built the nursing home had patches of terra firma. In marshlands this is a good area and the reason why they had considered it, was because in 1965 during the hurricane Betsy this is the only area that did not flood. In this consideration it means that with the establishment of the nursing home they had considered that incase there was a hurricane, there at St. Ritas it would not flood. This shows clearly that they would not have intentionally neglected their residents to suffer and drown in the floods and the subsequent death hence they should not have been convicted. For this consideration they had in mind that, just like in 1965 the hurricane was not going to affect them and for this reason they did not evacuate but instead they went up their one story building. A Show of Kindness During the time of imminent floods the Manganos has intended to safe other people by inviting them to St. Rita’s nursing home among these their staff and relatives as well as their won relatives. The reason they had done this was because they were kind enough and were ready to help other people. If they had a motive of willingly exposing their residents to flood and death they then could not have invited their resident. They had the best intention and they felt that they would not be affected by the floods and thus they did not neglect their residents or even wish for them to die. They had offered shelter to more than 25 people who had gladly accepted since they were exposed to the disaster of the hurricane. Safety Before the worst hurricane happened on 29th of august 2005, the manganos felt that everything was alright. They checked and inspected the area which showed that the ground were dry, the parking lot and the roof was also alright. However it is at this juncture that the hurricane struck. Sal mangano had herself gone outside with several other men to inspect the situation and ensure that everything was alright and that the people inside could not be in any danger whatsoever. Meaning they were concerned greatly about the safety of the people who were already inside at St. Rita’s nursing home, they could have done anything to ensure that these people were safe. The Hurricane Katrina Even when the hurricane struck the managos did not neglect heir resident in cat they went inside and tried to fortify the windows and the doors in desperation of trying to protect them. All the same a strong wind and a strong flow of water hit the nursing home’s walls and even penetrated inside, rising in the building. The mangano’s alongside their relatives some of them as well as their staff worked relentlessly during this time of the floods and also made frantic efforts to safe the people at the nursing home. This means all this time what they had intended was the good of the people at the nursing home and more than anything they used their judgment with the utmost good intentions of saving the people. Conclusion According to the law in the united sates of America the Louisiana requirement is that an evacuation plan should be in the nursing home but id does not state about being mandatory during an actual o evacuation. The law also recognizes a safe place and allows the nursing home to evacuate to such a place In this context the mangano’s did not willfully ignore these rules because they did everything that they could in fortifying their doors and windows in an effort to make their residents secure and to protect them from harm fro the Katrina hurricane and to protect them from drowning as well. St Rita’s nursing home was for the elderly people and others with special needs. One of the reason s why then mangano’s did not evacuate them is because they felt that by moving the people they would have been doing more harm than good, since most of the frail ones would have suffered or even died in transit. This again comes to show that the mangano’s made one judgment which was in consideration of their residents to protect them more than to harm them. The mangano’s did not at any one time leave or abandon their residents, they were there themselves and they had also invited their relatives and other people to offer them shelter, if they were willingly exposing them to danger they would not have invited their relatives and they also so would have rescued themselves leaving their residents to die. Therefore, the mangano’s used their judgment and safety measures. They felt that this area where the nursing home was situated probably could not be affected by the hurricane. They should not have been convicted of negligent homicide for the above reasons. References: Carrie Khan, Nursing home owners not guilty. 5th December, 2008. http//www. npr. org/templates/story/story. php? storyId=14261612 Dawn Fratangelo, what happened at St Rita’s Nursing Home? 3rd march, 2006. Http//www. msnbc. msn. com/id/11658446 Paul Rioux, St. Rita’s owners say no help was offered before Katrina hit, 15th September, 2005. http//seniorjournal. com/NEWS/Eldercare/5-09-15StRitaNoHelp. htm

Importance of Education Theories

Importance of Education Theories There is nothing so practical as a good theory (Lewin, 1946) Good theory, guides effective action by turning knowledge into wisdom. It is a process of forming new ideas.   Ã‚   The importance of thorising in education is to underpin that what students are doing, along with supported research, discussion, argument and a range of acedemic reading. Furthermore, it is best practice for students to regularly review their work from a critical aspect and ensure what they are writing reflects the comprehension of a fellow higher educated student. Being able to collate a range of ideas and analyse whether they compliment one another or even contrast, then reflect how they relate to ones own thoughts and experiences. In essence, how theorists provoke us and how we react or correspond to their provocation. Being theoretical, in an active, engaged way, is different to simply learning theory that other people have come up with and writing about it (MacDougall et. al, 2009). Education draws on a range of academic disciplines such as; Psychology, Sociology, Cultural Studies, Philosophy and History of Education. In particular, Howard Gardeners theory looks at different forms of intelligence in the form of learner dispositions, be they visual, auditory or kinaesthic learners and that intelligence is measured in different forms. (Gardener, 1993). If this is indeed the case, we then need to ask why our education system still favours formal assessment which is often tested within stressfull conditions, that produce high anxiety for the individual. It is here one needs to take a step back and examine the broader social structure on how our society finds the need to structure and rank its people by merely determing a portfolio of qualifications in order to function within the correct levels deemed appropriate by society itself. However good a theory, it cannot simply stand alone as a theory itself without being put into practice and tested in relation to other ideas by exploring, reflecting on and reworking to create new ideas. This re-mixing is a way of thinking that is dialectical (MacDougall et. al, 2009). Within the study of education, applying dialectical thinking is an important skill which contributes to interpretaion of educational phenomena. Socialogical imagination was introduced by Charles Wright Mills in 1959 and looked at how the impact on the individual differs if the same imact affects society as a whole and how a social structire (education) contributes to social problems. The social imagination enable us to grasp history and biography and the relations between the two with society (Wright Mills 1959). Critical thinking is a means to obtaining crutial knowledge. We should not simply take something as given, but by applying a social imagination look at things from   new and different perspectives allowing us to consider alternative posibilities. Higher eduation should see the adult student as a more intrinsic learner, as they see the benefit in the end goal. However, how they travel on that journey can differ. As John Biggs imples, some students will tend towards taking a deep approach while others will tend towards taking a surface approach (Biggs, 1999). Interestingly, Bloom suggests that student engagement has a role to play in the way we learn and identified behavioural, emotional and cognitive as three dimensions to student engagement, shown in the example below (Bloom, 1956). I can see how these two work hand in hand, as a deeper approach to learning sees students engaging with and intentionally seeking in gaining that extra knowledge, as well as welcoming the challenge of deeper learning to improve their own intelligence. I believe that during my last assignment, I actually took those positive steps towards becomming a student of deeper learning. I know it was because the subject matter was of great interest to me and as it related greatly to my role with school which motivated me more into seeking that greater depth of knowledge. I was pleased with obtaining my distinction, it proved to me that I had the ability to achieve more knowing I had that added value of interest in this specific assignment (Hastilow-Ali, S. 2017). I now hope that I will be able to apply the same strategies to my specialism and interact more vigorously relating new ideas to previous experiences. The surfaced level approach sees the less engaged student sticking closely to the courses requirement throughout and doing the bare minimum to get by, as their only goal is the qualification itself. A stategic approach to learning sees the type if student who desires a positive outcome. They will organise their time and ensure that the materials and resources for studying are appropriate. The strategic approach derives from an intention to obtain the highest possible grades and involves adopting well-organised and efficient study methods (Entwistle, 1992). I have found in writing assignments on how I learn as a student, and what its like to be in higher education, are subjects which have not stimulated me into wanting to seek a greater depth of knowledge. This I equate to being a compulsory part of the course, but of little relevance to my current professional role. Here is where I struggle, as being bombarded with lots of reading material on theory that generally has no great interest to me leads me to switch off. I then have to really work hard at encouraging and motivating myself to press on and work through the necessary steps to help me achieve the understanding of the subject matter I need for my assignment. Therefore, I definitely see myself as dipping in between a surface and strategic learner for the above subjects in question.

A Social Business, Microlending Essay -- Microlending Development

What is microlending? In simplest terms microlending is the lending of very small amounts of money at low interest, to low income people in urban and rural areas. It started forty years ago, when a person named Muhammad Yunus was visiting his family and his country Bangladesh which had recently become an independent country. Muhammad Yunus had left his home country then –East Bengal- when he was a child with his parents in search of a better future. He graduated from Vanderbilt University in Nashville, Tennessee, with a PhD in economics. Muhammad Yunus is the founder of Grameen Bank, the first non-profit organization to offer microfinance services in Bangladesh and in the world (New York Times). This bank showed the world on how little money can make a tremendous difference in people’s lives. Presently, there are thousands of institutions around the world that offer microfinance services, which sometimes suffer setbacks and uncertainties as any other for-profit or non-p rofit organization. When Muhammad Yunus was in Bangladesh, he realized that Bangladeshis were living in a more precarious condition than he had imagined and read on the newspapers. Many people owed money to these ruthless and heartless village money lenders. These people were never going to repay the loans because the interest rates were so high therefore, they were trapped for life. However, he found something very thought-provoking, which was the fact that when he accumulated the debt of approximately forty people, the grand total was seventy dollars. He gave people money out of his pocket so that they can repay their debt and they can be liberated. This was the moment when the idea of creating a microfinance institution originated- Muhammad Yunus realized that ... ...lo. "Can Microlending Save Haiti :[Money and Business/Financial Desk]. " New York Times 14 Nov. 2010, Late Edition (East Coast): ProQuest National Newspapers Premier, ProQuest. Web. 5 Dec. 2010. Richard Chacon, Globe Staff. "SMALL LOANS, BIG HOPES MICROLENDING LETS HAITIANS SEEK CREDIT :[THIRD Edition]. " Boston Globe 7 Oct. 2000,ProQuest National Newspapers Premier, ProQuest. Web. 4 Dec. 2010. David Gonzalez. "A Haitian Bank Takes Its Money to the Streets. " New York Times 17 Apr. 2001, Late Edition (East Coast): ProQuest National Newspapers Premier, ProQuest. Web. 8 Dec. 2010. FARID HOSSAIN. "2006 NOBEL PEACE PRIZE / Beating poverty, $200 at a time / Thousands of Bangladeshis pulled from despair by man's tiny loans :[3 STAR , 0 Edition]. " Houston Chronicle 14 Oct. 2006,ProQuest National Newspapers Premier, ProQuest. Web. 11 Dec. 2010.

Theme of Courage in To Kill a Mockingbird, by Harper Lee Essay

Throughout To Kill a Mockingbird, courage is seen as a major theme. Not only in Atticus' fight for the freedom of Tom Robinson, but also in Mrs. Dubose's fight to die free of her morphine addiction. Atticus proves that courage is a moral act by taking on Tom Robinson?s case. Atticus is intelligent enough to know the battle is already lost, but still he remains the man he says he is, and fights anyway. He fights to the best of his ability, and fights to the end. This is the same case with Mrs. Dubose and her fight to die free of her drug problem. She is certain that she will die, but she is determined to die free of morphine ? even if it means living her last days in pain. "Your father's no better than the niggers and trash he works for!" (pg 108) When Mrs. Dubose spoke badly abou...

Legalized Killing Should Be Abolished Essay -- Capital Punishment

Capital punishment, also called death penalty, is the punishment by death for a crime, and the only form of legalized killing. It may be carried out by electrocution, hanging, lethal injection, gas chamber, and firing squad. The death penalty has been banished in over one hundred and thirty countries, and it has been abolished in every industrialized nation except for the United States of America. In the United States, capital punishment has been an extremely controversial issue that divides the country and leads to disharmony. The death penalty abolition movement is growing, and some progress is being made, but there is a lot of work yet to be done. There are various organizations using different avenues to abolish the death penalty. They have been successful in New Mexico, Illinois, New Jersey and New York. These are organizations like Amnesty International, The National Coalition to Abolish the Death Penalty (NCADP), and The People of Faith against the Death Penalty (PFADP). Amnesty international is an eloquent and a well-known organization that is established in different parts of the world and active in the defense of human rights since 1961. It is one of the largest and best-known international nongovernmental organizations that is dedicated to humanitarian treatment of all people. Amnesty means a general pardon for offenses or an act of forgiveness for past offenses. They serve several purposes on the bringing about of equality, peace and social justice. However, one of their main goals is to abolish the death penalty. The organization has been quite successful in many countries and some states in the United States. Amnesty International stands out, because it has good governmental contacts all around the world, so â€Å"Amnest... ... 2012. . Draper, Thomas. Capital Punishment. New York: H.W. Wilson, 1985. Print. Gottfried, Ted. The Death Penalty: Justice or Legalized Murder? Brookfield, CT: Twenty-First Century, 2002. Print. Illustrated Oxford Dictionary. London [etc.: Dorling Kindersley, 2003. Print. Kennedy Cuomo. â€Å"Abolish Capital Punishment† in Blot, David (Ed.) Supplementary Readings on Peace and Nonviolence. Bronx, New York: self-Published, 2008. Kronenwetter, Michael. Capital Punishment: A Reference Handbook. Santa Barbara, CA: ABC-CLIO, 2001. Print. McCarthy, Colman. "The World's Only True False Quiz on Legalized Killing." The Center for Teaching Peace. Newsletter, 2011. Weisberg, Roger and Vanessa Roth. â€Å"No Tomorrow (DVD).† Docuramafilms. A Production of Public Policy Productions, 2010.

Last Tango in Paris

  Paul is an American trying to recover from the death of his French prostitute wife. Although he resents her for what she has done to him, he can never overcome his love for her, leading him to a life of contrasting emotions. We know those emotions due to the many reoccurring motifs seen throughout the film. In the film, it is understood that Paul is in a state of confusion that is unbeknownst to us at the time, through Bertolucci capturing him in low-key lighting. In many scenes of the first act of the film, the audience is unable to look at Paul’s face completely due to the overwhelming presence of shadows.For example, when Jeanne goes up to the apartment for the first time she is startled by Paul sitting alone in an empty room in the dark. He is unsure of who he is at this point in his life, if he doesn’t know that, then how or why should anyone else. Shadows are a great way to portray this to an audience because they are only limited to how much they can see of h im. Searching for answers to who you are is a big theme for both characters in the film; the eyes are the best way to read a person. Throughout the film Paul and Jeanne are looking through multiple windows and doorways.Another motif used in the film to display Paul’s uncertainty is having by having him constantly in a scene where Paul and the audience are capable of seeing a reflection of his face, most notably a mirror. His reflection allows to Paul to look at himself and try and figure out who he is or what he has done in the past. There are 2 instances where I believe the inclusion of a mirror and reflection made the scenes unforgettable, the first is the disturbing â€Å"butter† scene, and the second is at the conclusion of the film where Jeanne and Paul are at the Tango competition.I see the mirrors as a fore-shadow that a different emotion or â€Å"personality† is present of Paul. In the first scene mentioned, nothing seemed out of the ordinary when Jeanne came back, Paul was 2 sitting by himself eating, but she opens a dresser door and we see the reflection of devilish look on Paul’s face. An uneasy feeling takes over, and something odd is going to occur. The second scene is the scene in the Tango hall, with mirrors lining up the walls inside, the feeling of something unknown returns.Of course, by the end of the film Paul has completely changed, and wants to start a new life with Jeanne, but he has only become obsessed with her and chases her down the streets of Paris. What makes this so powerful is that the audience is left thinking whether he is the same way he as the entire film or is he actually the person he sees in the mirror at the end. What makes the character of Paul so unique and interesting is all the different emotions this man has gone through in his recent years.There are times when he is lonely, confused, happy, sad, and especially scared, it seems that at any moment he can change into a different mood. When Pa ul and Jeanne first meet, Paul already has a wall up from getting to know another women, because he has been deeply scarred by his wife’s affairs, Paul had lost his belief in love. He is terrified to open up and talk to Jeanne on a more personal level; Jeanne only tells him her name right before Paul is shot. The risk of being hurt by another women is the reason why Paul always preferred never to talk about there past personal lives.

Family and friends everyday lives Essay

Write an essay describing how new media technologies affect you, your family and friends everyday lives. The media world is constantly changing as a result of new developments in technology. Therefore the media industry is dependant upon highly sophisticated technology, which can be used to influence and inform groups of people all around the world. It has been suggested that we live in a world that is ‘media saturated’ as it dominates our lives. This in effect is true as media is a central part of our lives, it can be used to deliver us news as well as a source of entertainment, and this is why media can be so influential. The internet is one of the most fast developing new media technologies, enabling users to contact people all over the world to shop, chat, play games, download music and information, send e-mails and keep up with current affairs. The Internet was developed in America in the 1960s and was introduced in the 1990s in Britain. Originally this technology was introduced as a way of bringing people all over the world closer together, enabling them to communicate with one another simultaneously, giving its name the ‘medium of the future’. It is constantly being developed to suit peoples’ needs, for example broadband internet offers faster connection and makes downloading easy, effortless and not so time consuming as it used to be. Many radio stations have recognised that people may wish to listen whilst ‘surfing’ the Net, so have incorporated a ‘live airplay’ programme on their websites so that it is possible to listen to the radio via a computer rather than the conventional radio device. Many websites also offer a service where downloading music is free, this means that many people can save large amounts of money on buying CDs and can obtain the latest music singles and albums from the comfort of their own home. Home shopping is also increasing due to Internet services allowing consumers to purchase a range of goods via the Internet using their credit/debit cards as a method of payment. The advantage of this is that the busy shopping atmosphere is avoided and time is saved, this is also the case in online banking systems where cardholders can view bank statements, credit details and communicate with their bank via email. The only problem with these systems is that credit card details are given out over the Internet and may be obtained by other companies or Internet users, meaning the risk of credit card fraud is higher. However, a select few internet based companies have introduced a card which can be used like a ‘top-up’ card bought for mobile telephones, in the sense that a card is issued to the internet shopper so that they are able to go a top-up point and pay for a certain amount of money to be put on their card, which can then be used to purchase goods from the internet. Not only is this a safer option, it is also more convenient for younger customers who are not yet eligible for a credit card. Due to improved media technologies, it is now possible to access the Internet through digital television sets and mobile WAP compatible telephones. This means information, entertainment and news can be displayed without the use of a computer. Revision websites make learning a more interactive experience for students, as well as being a useful alternative to other methods of learning such as flashcards. Students can also test themselves and the website can mark their answers, giving them a score to see how effective the revision has been. Other websites such as ‘lastminute. com’ allow holidays, rental cars and other goods to be bought at the ‘last minute’ at a reduced rate. This means considerable savings can be made and purchasing goods or booking holidays is made simple and easy. Another convenience of the Internet is that ‘Chat Rooms’ allow people to talk to various people all over the world and if desired become involved in group discussions. This can mean young people can meet and talk to people of their own age group and interests and exchange thoughts and ideas. Obviously as you cannot see the person you are communicating with, you cannot be sure that they are telling the truth about their age, gender etc which also means this may cause an increase of illegal groups operating in chat rooms, such as paedophiles who abuse the internet. This may affect many families in different ways for example, if a parent feels that their child may not be safe to talk to people on the Internet they may limit the child’s use or filter the system so that they cannot access the chat rooms. If a teenager arranges to meet up with a person that they believe to be of the same age group as themselves, to discover that they are not the person they described themselves to be on the internet, they may face serious problems such as stalking. This can lead to anxiety problems and distrust for some people as well as being a major worry for all parents. Instant messaging services (MSN etc) allow users to be informed when friends or other named people on their contact list are online and lets them automatically begin a conversation without needing to log onto a chat room. Voice conversations can also be made using these facilities. Email enables Internet users to send a succession of ‘letters’ around the world to various people within seconds, as they are delivered instantly. Not only does this save time and money as the service is free, but it means messages can be sent and received instantly rather than waiting days, or even weeks for a letter to be delivered by post. Many people find this an excellent way of keeping in contact with relatives and friends, particularly those who live a long distance away. The only social problem that has been recognised by researchers is that emailing has begun to discourage people from writing letters, therefore making us more computer literate but less inclined to keep up good standards of writing skills.

Dow Chemical’s Bid for PBB in Argentina Essay

1. (5 pts) Using the values from exhibits 9, 10 and 11, a terminal growth rate of 0%, and a discount rate of 20%, what is the value of each of the three investment stages? 2. (30 pts) Describe the two most relevant factors (only those related to the fact that the acquisition is in Argentina and not in the U.S.) that in your opinion add uncertainty to those cash flows. Please list each factor with a short explanation of why it is relevant, whether it is a diversifiable risk (assume Dow’s investors are global) and the likelihood that it will affect PBB. 3. (20 pts) For question 3 please state which statement you agree with and why. The numbers shown are there to provide an idea of sensitivity, they are not precise and there is no precise answer to these questions. That is, in the absence of much, much more information, there is no clear â€Å"right† answer (though there are many â€Å"wrong† ones). Your reasoning is what matters most. Suppose that â€Å"today† is 1997 (there’s nothing particularly special about 1997, I could have chosen any other year near 1995, the beginning of the valuation). a. The sensitivity of 1998 revenues, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that: a.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in revenue, measured in US$, a.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in revenue, measured in US$ a.iii. a 40% devaluation of the Argentinian peso would translate into no fall in revenue, measured in US$, a.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in revenue, measured in US$, a.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in revenue, measured in US$. b. The sensitivity of 2010 revenues, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that: b.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in revenue, measured in US$, b.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in revenue, measured in US$, b.iii. a 40% devaluation of the Argentinian peso would translate into no fall in revenue, measured in US$, b.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in revenue, measured in US$, b.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in revenue, measured in US$. c. The sensitivity of 1998 costs, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that: c.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in costs, measured in US$, c.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in costs, measured in US$, c.iii. a 40% devaluation of the Argentinian peso would translate into no fall in costs, measured in US$, c.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in costs, measured in US$, c.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in costs, measured in US$. d. The sensitivity of 2010 costs, measured in US$, to 1997 changes in the Argentinian peso against the dollar is such that: d.i. a 40% devaluation of the Argentinian peso would translate into a 40% fall in costs, measured in US$, d.ii. a 40% devaluation of the Argentinian peso would translate into a 20% fall in costs, measured in US$, d.iii. a 40% devaluation of the Argentinian peso would translate into no fall in costs, measured in US$, d.iv. a 40% devaluation of the Argentinian peso would translate into a 20% increase in costs, measured in US$, d.v. a 40% devaluation of the Argentinian peso would translate into a 40% increase in costs, measured in US$. 4. (10 pts) Based on your answers to question 3, a. What would Dow’s short-run net exposure to the Argentinian peso be? b. What would Dow’s long-run net exposure to the Argentinian peso be? c. If Dow wanted to hedge its short-run net exposure to the Argentinian peso, what would it have to do? Please provide three different alternatives it could use to hedge that risk and explain which one is likely to be the cheapest. d. If Dow wanted to hedge its long-run net exposure to the Argentinian peso, what would it have to do? Please provide three different alternatives it could use to hedge that risk and explain which one is likely to be the cheapest. 5. (30 pts) In light of what you’ve answered in questions 2 through 4 and other material from class, please state whether the discount rate that Dow should use for this valuation is larger, smaller, or the same as in the U.S. 6. (5 pts) Based on your previous answers, should Oscar Vignart bid for PBB, and if so, how much? (Maximum 100 words.) 1. (Exhibit 1) The first stage has a value for the 51% of PBB of 160.833 million of dollars. The second stage has a value (100%) of 182.62 million of dollars. The third stage has a value of 92.66 million of dollars. The first problem that involves a risk factor for investors to Dow is political risk. The economic and monetary policy implemented by the Argentine government at this time, in recent years has allowed the country to recover from a decade of crisis and seems to work pretty well. However, the risk that these maneuvers are counterproductive in the long run is alive. In that case Dow suffer some problems. In fact, most of the production in the three stadiums and sold locally (PBB 100%, 89% Polisur, 31% of capacity due to the widening of stage 3) and, if there were problems due to the political instability, most of its current and potential customers (formed by small and medium-sized businesses that use POLYETHILENE to produce good consumer) could struggle and eventually fail. That would be a serious reduction in the margins of the Dow and in its cash flows. The second problem is related to foreign exchange risk. Regarding this risk factor should make some clarifications. For the moment the government is pursuing a policy of currency pegging, for which the exchange rate and artificially set at 1. However, this condition may no longer be sustainable. In this case if it were abandoned is easy to imagine the effect it would have on markets, putting in serious condition, the Argentine economy because of lack of confidence in its solvency and this would lead to a sharp appreciation of the dollar on the weight. This situation is not particularly influential on the budgets of 3 stages where Dow is going to invest because both revenues and the variable cost (about 90% of total costs) are in dollars and only a small amount of variable and fixed cost are in Peso, and anyway with devaluation of Argentinian currency would lead to an advantage per Dow (needed fewer dollars to pay in Peso, and those costs are slower to adapt to new exchange rates). On the contrary the negative effect of the abandonment of the peg you would in Argentine petrochemical market. In fact, polyethilene prices are in U.S. dollars and with the devaluation of the peso (the currency in which the players downstream of Dow are cashing) Dow’s Argentinian customers could find themselves in difficulty to support prices in dollars, which are international based. That would lead to a radical decline in the profitability of Dow. Finally, it is important to emphasize that, also selling outside the country, Dow would see margins decline due to higher costs of transportation and duties. 3. a. ii. PBB Is cashing in dollars so a fall of 40% of Peso would not have a direct impact of translating the cash flow of PBB into dollors. However PBB operates in Argentina, and its revenues are tied to the ability of its customers to buy in dollars. With such a devaluation of the Argentine pbb customers may find it difficult to pay but it is said that everyone is unable to do so because they could be covered in the market for coins. pbb also may move and take advantage of the amount of unmet demand in Latin America. However, this in a year is not feasible to perfection then a reduction in revenues of 20% is predictable. b. iii. The reasoning is similar to that outlined above. However, in this case one can imagine that pbb reacted to the change occurred 3 years before or however that the situation has changed. If the economy has recovered, it’ll be exporting outside of Argentina for the amount of capacity can not be sold in argentina, decreasing their margins because of the cost of export revenues, but keeping to the level in the case of PEG. c. ii. Talking about the good things are different costs. Even tough much of the costs are in U.S. dollars for pbb there is a part of them that is paid in pesos. It is part of the variable costs and fixed costs. However a devaluation of the peso would be a gain for PBB, which, cashing in dollars, will convert fewer dollars to pay in pesos. As mentioned, however, this effect would be taken with a not too substantial part of the costs of pbb, and also it can be assumed that during the year some of these costs are aligned in part to the conversion values ​​before the write-down for an inflationary process. d. iii. The reasoning is similar to that described above, however, it is assumed that in the course of 3 years, the monetary costs of PBB align to those pre devaluation, thus not allowing to benefit from the effect devaluing. a. the net peso short run exposure is about the fixed cost, other variable cost and taxes, for an amount of (EXHIBIT 1) of 116.7 million of dollars. b. the net long run peso exposure is 374.22 million of dollars. c. to hedge a currency risk the alternatives are: forwards (or future) contract options currency swap. The best alternatives in the short run are the forward, they are cheap (no entry expense) and very versatile. To hedge the amount the just have to enter in a contract of the opposite direction of what they need. In this case they have to buy the total cost in pesos ad the current exchange rate in dollars. Using options it would much costly because of the option premium which has to be paid once you entered in such a contract. Anyway, because you will only exercise your right if it the exchange rate is favorable, they leave gain opportunities in exchange rates. The currency swap doesn’t fit well the short run exposure because of the length of such a contract and and the cost to be inside that kind of contract if there is not an existent debt. d. In the long term forward could be costly for the premium that the controparty may put in the exchange rates (they are commonly banks in over the counter markets), and because for long term the market could be illiquid. In this particular case the long term are just 3 years so using forward could still be a good choise. Options in the long term are not good because it is difficult to find in markets contract with such long expiring date (and exact date in order not to incur in basis risk) and because you have to buy several contract. Swap could be an idea, but as forward don’t allow gains on favorable exchange rate; a currency swaption (option on a currency swap) could be an idea, but looks costly at time of entering in the contract. The discount rate that Dow should use, should be higher than that used for evaluating such an investment in the United States. This is due to the fact that the rate of between 8-10% used in US incorporates a risk premium relative to the U.S. market, which is different from that required for a similar investment in the Argentine market. In fact, looking at the performance of American and Argentine sovereign bonds, we see that the latter are higher than the U.S.. this difference is no more than the country risk premium that an investor requires to invest in Argentina compared to investing in the U.S.. this spread can be introduced into the calculation of the value of the correct discount rate using the following formula: Keu is identified with the unlevered cost of capital, or the return required to invest in certain asset class. With rf the risk-free return to us, ï  ¢u with the unlevered beta for the sector (plastic and specialized chemicals) with rm the market return and cpr country risk premium. Now, in the specific case under investigation in research on international databese you identify that the unlevered beta of the sector is close to the unit. You can also add that in the long term all beta approaching market beta (as a consequence of the Efficient Market Theory that states that as all information becomes known, the market will settle to its proper level as everyone will be able to make correct choices), and therefore since our beta in databese is equal to one, the hypothesis of adjusted beta only reinforce this assumption. So in this particular case it can be assumed that the country risk premium can be simply added to the discount factor used for an American investment. The problem is now correctly assessing the market risk premium. You can see from the exhibits proposed (Exhibit 2) that in recent years, with the PEG CPR has fluctuated around an average of about 700 basis points. Despite the markets already incorporate the possible abandonment of the peg and its causes is not difficult to think that if that happened the â€Å"cpr† suffer a considerable leap and this estimate might be not prudent, but we must remember that the market is not only Argentina in the presented 3 stages, and potentially due to the increased demand in Latin America (exhibits 3), Dow could be exported elsewhere. A CPR of around 5-7% is so reasonable, for a total discount rate between 13-17%. By using the rate of growth proposed in the case of 3.3% per annum and a discount rate of 16%, the NPV of 51% of PBB is of U.S. $ 207,476 million. This amount is not however the correct the price of the bid. Just the cash flows are not enough to assess the correct price to offer the Argentine government. As first analysis the two competitors do not seem serious bidder in the auction because they do not meet the request of combined 5 billion net worth. There are still 10 days at the closing of the auction and if they succeed caming forward with a capital increase bringing their combined wealth over 5 billion, then Dow should also consider the fact that it can benefit not only the cash flows of PBB but also those of the 3 stage of the project, which provide in part an increase in production capacity of PBB and especially of its efficiency. A price around $ 300 million should keep out other potential bidder, which they cannot reach the advantage of being the mainly argenitian producer . However, this scenario is not credible given the close smebra operating times were competitors to meet the demands of the government, then the minimum bet request for $ 150 million should be sufficient and would allow Dow generate a significant positive NPV. 150 ultimately is ultimately the value to offer.