Tragedies of Postpartum Psychosis Essay Example for Free

Tragedies of Postpartum Psychosis EssayTragedies of Postpartum Psychosis Ethical Decisions and Sentencing Postpartum depression affects approximately ten to xxii percent of women and as many as about eighty percent of women suffer from some sort of baby blues. Even so, the much much serious problem of postnatal psychosis completely occurs in as few as one in every five hundred births (Williams, 2002). Postpartum psychosis seat dupe catastrophic outcomes, like in the case of Andrea Yates. What should happen to women like Andrea?Prison, the death penalty or a affable excogitation? Ethical issues, such(prenominal)(prenominal) as postpartum psychosis crimes, be debated using various theories of moral philosophy. Postpartum psychosis tends to have a rapid onset within the first four weeks after with child(p) birth, whereas postpartum depression has a slower onset occurring around weeks six through twelve after childbirth (Williams, 2002). In postpartum psychosis, the sympt oms include desire changes, delusional thoughts, paranoia and hallucinations. Symptoms give notice intensify or lessen.Women suffering are often afraid to ask for help due to the paranoia and guilt felt surround the disorder. left to manage symptoms themselves, tragedies often occur as affected women committing suicide or infanticide. When such crimes occur, people debate how to deal with the women accused. Being committed to a mental institution is one course of action for such women. The argument for this is that these women are in need of psychiatric treatment, that they are unable to distinguish between skilful or wrong at the time of act due to their altered view on reality.Andrea Yates, for example, believed that she had Satan inside her and that she was unable to raise the children properly because of it that they couldnt be saved and were going to burn in hell (Roche, 2002). Andrea believed that her being evil was causing her children to non be fulleous and that she ne eded to be executed. The only way for that to happen was for Andrea to kill her children. Women accused of such crimes can get the help they need in an institution, where they are unable to harm themselves or their children.These women forever and a day carry with them the horror and guilt for what they have done, once they are no longer sick. Postpartum psychosis is a mental disability and should be treated as such. It would be a huge in arbiter to the affected women to be placed in prison house, or worse yet sentenced to death. The crimes that they commit, infanticide and the like, are unspeakable however it would not serve them or society well to have them locked up in prison and continue to suffer from this illness. If placed in a mental institution they may be rehabilitated into productive members of society once again.However there are opposing views on this subject. One of the opposing thoughts is that the crimes are so atrocious that these women must pay retri exclusivelyi on for what they have done (Anonymous, 2008). Many believe that convicted women should be paying their debt to society from behind prison interdict, that these women are a encounter to society like any other murderer and should serve time accordingly. Complicating the situation are the callous women who commit such crimes and and then use postpartum psychosis as a defense when they are not suffering from this illness.One example of uch would be Susan Smith, who lied about the disappearance of her two young sons and then later claimed that she suffered from postpartum depression causing her to kill her children. Investigators on her case found that she was dating a man who wasnt ready for a off-the-shelf family (Gibbs, Booth, Gregory, Monroe, Towle, 1994). Therefore, doubt is cast in the minds of society and they see all infanticides as horrific crimes where skillfulice must be sought for the innocent victims. Committing capital offices such as the murder of children and infan ts are offenses that are eligible for the death penalty.Due to the appalling nature of the crimes committed many want to see the offender to be put to death instead of wasting tax-payer dollars to keep them in prison for life. This is just another way society seeks retribution for these horrid crimes. People accept that the women accused of these crimes are not really mentally ill may have a couple of different viewpoints for deciding their fates through sentencing. Viewpoints on sentencing convicted women to prison or the death penalty may depend on Kantian and cultural relativism theories of ethics.Kantian views on ethics rely on reason to open categorical ethical principles (Waller,2008, pg. 21). In applying reason to the murdering of innocent children, ethically the convicted women belongs either in prison or sentenced to death. Kantian views believe in the golden rule do to others what you would have them do to you. Keeping that in mind then the killing of another person wou ld bring upon punishment to the accused. Kantian also believes that we are responsible for our actions, good or bad, and is a product of eject will (Caswell, 2006).In keeping with this view then, these women are morally responsible and choose, due to free will, to end their childrens life therefore they should be held accountable. Another theory that would support imprisonment or death penalty sentence, for non-believers of the women being truly mentally ill, would be cultural relativism. Cultural relativism is defined as ethical judgments made relative to a given culture. Cultural relativism is basically the relativity of its societys values, and murder is wrong no matter who is the victim. specially when it involves innocent victims such as infants and children.Therefore, if the murdering of children is wrong then there should be someone held accountable for the crime. It is problematical for society to imagine that a child could die at the hands of their own mother. Unfortunate ly, with the blood on the mothers hands she is placed in front of the firing squad, so to speak, so that justice can be served for the children. Under cultural relativism then, anyone convicted of such a crime should be punished to the fullest effect of the law. But is this the right solution to the problem?Possibly fetching on a more sympathetic view, such as care ethics and intuitionists, can help us in choosing the right sentencing for these women. People who believe in care ethics are more about caring for the person than for justice for the crime (Tong and Williams, 2009). Women committing these crimes need medical help more than they need to be placed behind bars and people looking at this from the care ethics viewpoint can see it this way. They are not blinded by the need for justice and have sympathy for not only the innocent victims, but also the accused. The accused are victims in many ways also.These women have been let done by the medical community and some by their fa milies who have seen the signs and have not gotten them help before it had escalated into tragedy. Care ethicists can see that there truly is a problem and by placing the woman behind bars or worse yet, sentencing them to death, there is a bigger tragedy occurring the continued victimization of a mentally ill woman. Intuitionist feel they know what is the right thing to do, as in the Waller (2008) he told of Huck Finn debating over whether or not to turn in his friend Jim, a slave owned by someone who had always been kind to him.Huck decided not to turn Jim in and let him go, knowing that ultimately slavery is wrong. This won over the item that he was stealing Miz Watsons property by helping Jim escape. The same can be applied to the women that have committed crimes while suffering from postpartum psychosis. Intuitionists know that the act was wrong and should require retribution for their crimes. However, the bigger issue is identifying postpartum psychosis as a medical condition and treating the accused accordingly.In conclusion, I believe that people choosing not to recognize postpartum psychosis as a medical condition seek out more severe punishments for the crimes. In doing so, Kantian views and cultural relativism are two ways that they justify their beliefs on severe sentencing. Kantian views are very strict and absolute breaks a rule, you need to be punished accordingly. Cultural relativism is based on the societal ethics, break a societal rule punishment ensues. I believe this side of the debate just wants to see justice done for the innocent victims.Whereas care ethicists and intuitionists want justice, but they also want what is intrinsically right done. Sending the accused to prison or to death row, does not provide justice for the innocent victims, it would only add to the familys suffering and create more victims. Care ethicists look at taking care of the accused as opposed to being out for revenge or justice. Intuitionists look at what they fe el is the right decision, and sending someone apart for a crime that they committed when they were not in control of themselves does not feel morally correct to them.Referenceshttp//www.time.com/time/nation/article/0,8599,218445,00.htmlhttp//plato.stanford.edu/archives/fall2009/entries/feminism-ethics/

The view that Fanthorpe offers us new perspectives on the things we take for granted Essay Example for Free

The candidate that Fanthorpe offers us new perspectives on the things we shine for granted EssayI agree to a great extent with the imbibe that UA Fanthorpe presents the reader a new perception into the things that are so important in our lives but we are seen to be taking advantage of these things. These figures are illustrated by Fanthorpe in her collection of poems Safe as Houses and two of these poems that tie in with this theory are The Unprofessionals and Water Everywhere.The first poem livelinesss at the event of failure after the death of a close person and the time of consoling and supporting the individual through their mourning phase. The poem indicates that the stack surrounding you who run through come to support you during your bereavement dont have their presence appreciated, as it is expected from them to be thither during this time and situation. In the opening stanza of the poem the Fanthorpe describes the moment as The worst thing and the use of the sup erlative adjective demonstrates that the person is going through the worst crisis of their life, in this circumstance the death of a close nonpareil and that this tragedy would have a knock on affect through the life of the grief stricken person.That uproots the future,That you must live for every hour of your future,The agent implies that the only way through this situation is letting time do the work as suggested by the proverb Time is a great healer. During the side by side(p) stanza the poet refers to the The Unprofessionals or the mass who come to console as though they arent trained in the art of counseling and the event has come as a scandalise to them as well as the mourner as they havent anticipated this crisis.They come,Unorganized, inarticulate, unprofessionalFanthorpe demonstrates to the reader that the frame of heed that the visitors are in is that they are struggling on how to cope with this situation and with someone who is in the midst of di strivinging circumst ances. The author illustrates to the reader that the The Unprofessionals help the victim through this state by facilitating there solar day to day activities such as making tea and answering the phone.They come sheepishly, sit with you, holding hands,From tea to tea, from Anadin to Valium,The above verse suggests that their presence alone is a huge positionor in the comfort that they provide to the wounded. Also the references to the painkillers suggest that the counselors engage in the bereaved daily routines to relieve them of more problems. The expression dormancy on put-you-ups gives the reader the feeling that they are only considering ways in which to strengthen the victims spirit and this also proves that they are selfless as they contemplate others onwards themselves.The next verse reveals to the user how the time passes gradually in heartache as the consoler is forced to dig into conversations About wallflowers, and fishing, whilst trying to keep the mourner tenanted and taking their mind of the troubles. The succinct expression and why is used commonly during this type of situation as the grieved has to confront the bigger issue of overcoming the death of there close relatives. here The Unprofessionals are trying to pop the important question to help the person through his or her grief. Fanthorpe contrastedly places this immense question against the crystalize issues of Wallflowers, and fishing to show the reader that somehow and at some point you have to tackle the larger problems in life, in the form of death. The author again ponders the casual things in life to take his mind of his problems which shows that it is hard to confront dilemmas without the help of your confidant.Like civilians in a shelter, under bombardment,Holding hands and school term it outThe final stanza as shown above also demonstrates how a traumatized individual has to confide in their counselors arms. Fanthorpe also uses a simile to create emphasis on the difficulty of the situation that not only the victim but the minder is in by comparing it to the harshness of war and its distressing affect on the civilians. The poet compares the troubles to how it felt during air raids of a war whilst under constant bombardment not knowing what was going to happen next or whose life would be taken away. The poet exaggerates the length of time it takes for the victim to recover from the dreadful pain of a close ones death by suggesting that these events of The Unprofessionals is ongoing and everlasting.Through the immortality of all the seconds,Until the blunting of time.The poets stress on the seconds helps exaggerate the length of time it takes to recuperate from an event of a sorrowful nature. However the final line makes evident that time is the greatest of healers as the use of the word blunting is symbolic of a blade, which is no longer sharp signifying that after time has had its say your pains would have diminished.The next poem which I will analyze di scusses how people seem to take one of perfections greatest creations of water for granted. In the opening line the author believes that water is a God in its independence and that know one officially recognizes it as a divine being.Officially they do not acknowledge this divinity fudge.Officially they whiteness assort immortalsIn stone buildings with pioneering roofs.In the first stanza the poet is referring to the sacred places of worship that have been built with the finest material and stand out from all other buildings. Fanthorpe brings to mind the pioneering roofs of mosques, churches and temples where they honour heavenly immortals.The poet illustrates to the reader that although they dont seem to admit to worshipping water they use the water as though its never-ending in the form of the toilet or shrine.Below, a shrineTo the godhead. Here they may stand aloneIn confessional boxes, or lie full lengthIn his hollow bed, singing.The references above to the use of unearthly terms such as shrine or confessional boxes demonstrates to the user that the toilet is a sanctified site for the worshippers of water. The poet tries to manipulate everyday objects that we use with water to present that water is something that we take for granted and uses the common places of the toilet and bathtub to show us that we use the water but dont acknowledge its use. Another amusing look at the water as a God is the imaginative idea that Fanthorpe creates the feeling to the reader that the gurgling sound coming from the plug hole is in fact the water gods prophecies.Here he sometimes speaksIn loud, disquieting, oracular tones.Fanthorpe also uses the significance fish in Christianity to exemplify the details of the theory of the water God. Here the poet signifies that fishing is a ritual of the God as people are casting there fishing rods as a gesture to the Deity and that the people taking part are demonstrated as meditating towards the water god but in fact are too busy finding the snap fastener of the day.We found contemplatives, with green umbrellas,Making symbolic gestures at the stream.This stanza is quite amusing as for a person who doesnt recognize the water god would believe the poet was strange and the poet is selecting the most ordinary of things in a human beings life to pick out where they are contemplating towards the water. Fanthorpe also utilizes the events of watering a garden and washing the railway car as being religious ceremonies intended for the water god.In the hot month they consecrate their gardensWith a wet rite involving children, rubberThey lustrate the car.The take down of children in the above stanza has the suggestion of the rite of baptism in Christianity and the car could be pictured as being given a re-birth as they are luster there of its wrongdoings.The tone of the poem changes during the next verse as Fanthorpe alters her view on how people identify with the water god from a positive view to a negative impressi on which they make using established prayers.Lovely weather for ducksLast Thursday we had our summer. Flaming June(Black comedy is native to this people).Fanthorpe uses displays everyday comments make by people against the god and his rainy gift, and suggests that these comments are sarcastic towards the god. The above verse is typical of what people take for granted in water as when we have rain people complain that there is too much of it and when it is sparse they complain of having too little. This backs the idea that Fanthorpe offers us new perspectives on the things we take benefit of although we never stop complaining about the problems that it causes us.The next stanza is also comical for the reader as the weathermen on different channels are compared to ministers of god as they preach to the worshippers of what the water god has proposed for them.Ministers of the godRecite on different airways his moods and intentions.The people claim not to believe. But they listen.The abo ve extract demonstrates the pettishness which Fanthorpe portrays in her work as she uses the common belief that weather forecasters are always predicting incorrectly but the majority of British society still ends up listening.The opening line of the penultimate verse there literature is great. They never read it is related to the line above as they both accuse people of not speaking the truth and this also links in with the idea that people dont acknowledge that they worship the water god.In the finale of the poem UA Fanthorpe speaks her mind by stating that humans take the form of water for granted and implies that this makes them ignorant of their surroundings.The two poems above that I have analyzed clearly demonstrate that the view that Fanthorpe offers her readers an original perception on the things that we humans take advantage of and that we should consider ourselves to be lucky to have these things for example in the form of water and friends which no one can live without.

Strategic Human Resource Management at Sears stores

St rungic Human Resource Management at Sears storesSears, an Ameri mountain chain of de givement stores, is one of leading retailers in the world. Under the leadership of chief operating officer Arthur Martinez, Sears developed an employee-customer-profit model and successfully changed its financial exploit in the nineteenth century (Rucci, Kirn and Quinn, 1998). Sears successful transformation has changed not only its market strategy but also brassal culture.In the essay, I will firstly analyse traces for Sears transformation from the external and internal environment. Before presenting an approach of pay back off management, main issues of the old reward management will be discussed. Then I will review several elements which atomic number 18 essential for building up reward management and relieve reasons. After all, I will gather a conclusion of previous points.External forces for transformationCompetitorsThe severe threat from competitors in the market is a springy rea son for the necessity of transformation. Porter (1980) identified five forces in the competitive environment in which competitive rivalry is one of key elements.The early of 19th century had witnessed the switch performance of Sears. However, in the same period, Sears competitors, coming from difference sides, gobbled up market share with remarkable speed. Notably, Wal-Mart, focusing on the exigency of customers, was capturing the popularity of customers (Rucci, Kirn and Quinn, 1998).EmployeesThe ignorance of the need of employees could affect the long development of Sears. Before the transformation, few workers could acknowledge managerial strategy and could micturate a clear view of what role they played.Besides, the derangement in 1922 brought a heavy burden to employees, making them tire out. Due to the immediate need for improving performance, Martinez and his team temporarily ignored the attention of employees. The reengineered store operations heavily emphasised on prep aration, incentives, and the elimination of administrative and other non-selling labours for gross sales personnel (Rucci, Kirn and Quinn, 1998).It brought a multiple of extra workload for employees.CustomersThe satisfaction of customer is spanking for the development of the company. However, Sears turned to be a self-absorbed company which was interested in its own management (Martinez and Madigan, 200114).According to the research conducted by the customer task force customers opinions had been neglected by the headquarters. Besides, a multiple of cases had proved the failure to meet customers expectations (Rucci, Kirn and Quinn, 1998).Internal forces for transformationFinanceThe financial crisis is the key for the urgent transformation. In 1992, sears undertook its worst crisis in history with a net going away of 3.9% billion. Although the success of 1992 turnover, it is essential to systematically transfer the organisation in order to gain a long-term profit. In 1992, with t he arrival of Arthur Martinez, to resolve the urgent financial problem, store operations were reengineered, with a heavy emphasis on training, incentives, and the elimination of administrative and other non-selling tasks for sales personnel(Rucci, Kirn and Quinn, 1998).CultureThe old command-and-control culture was too parental to take care about employees. Although top-down structure could produce effective initial outcomes, it was lack of the wide of the mark ownership and employee engagement (Rucci, Kirn and Quinn, 1998).Sears was entrapped in the history without recognising timely changing world. The old culture did not fit in the renewal environment. Therefore, changing Sears culture is necessity for companys long-term development. It would be a battle against a deeply troubled, bureaucratic culture (Martinez and Madigan, 2001)Main issues of reward management and motivationManagersA significant rate of pay linking to achievement of customers satisfaction target has negative e ffects on managers performance. Specifically, a large percentage of pay at risk may get negative reactions and some resistance. For instance, managers feel anxious about the insecurity of the job. Moreover, it is difficult to evaluate and identify the improvement of customers satisfaction which is affected by complex factors. Therefore, it is unjust to cut off variable pay because of customers satisfaction.The application of Leadership skills model may not adequately fit with any positions. Sears has identified 12 leadership skills and qualities and utilised them in the evaluation, promotion and training (Rucci, Kirn and Quinn, 1998). However, the technical skill which is significantly vital for position is not clearly presented. Leadership skills model seems to be super contextual.Too much training can lead to diverse effects for Sears. Firstly, mangers need the time to exercise and apply what they have learned into job. Sears casts various types of training, such as learning maps, town hall meetings, which occupy much time. Besides, training programs bring financial burden for the company. Because cost of training covering rents of training rooms, fees for trainers or else can be expensive.EmployeesThe flexible pay referring to customers satisfaction may affect employees performance in a negative way. In Sears, Goal-sharing pilot programs associate employees incentives pay with customers satisfaction. Additionally, employees income at risk may cause overwork and others which may damage both physical and mental health. Besides, it adds insecurity and unpredictability which can affect the on the job(p) performance, cause anxious and pressure(Heery,1996).The efficiency of communication with millions of employees could affect the deployment of reward management. Communication is a troubling issue for retailers like Sears with 300,000 employees at thousands of locations. Besides, the relatively high turnover rates require the necessary of continual reorient ation of new employees (Rucci, Kirn and Quinn, 1998).New reward approachesAmabile (1998) pointed out that as for creative and innovative workers, intrinsic rewards is a break out motivator rather extrinsic rewards. Sears attempts to provoke the workers innovation and creativity, therefore, intrinsic rewards should relatively emphasised in reward management. Intrinsic rewards can be expressed as non-financial rewards. Armstong (2002) presented the importance of financial and non-financial rewards.New reward approach is widely discussed by researchers. Features of new reward can be simply generalised into strategic, business-aligned, flexible, performance-driven, distinctive and integrated of the actions of employer and employee (Armstrong and Murlis, 2004).Reward management is a key element within human resource management which should be bound up with business strategy.According to the situation of Sears, non-financial or intrinsic reward and new reward should be taken account in to the consideration of Sears reward system. In Sears, the importance of non-financial rewards is sensed to some extent. Besides, Reward systems which could make a significant strategic contribution to business success should be systematically designed and adjusted in accordance with the organisational strategy. Based on the abbreviation of specific situations of Sears, different new strategy approaches are recommended for managers and employees respectively.Competence-based pay for managersCompetency-based pay is a method of rewarding people wholly or partly for individuals competencies which are demonstrated or performed in their positions (Armstrong, 2002).It is referred that competence-based pay which has associate competencies with current as well as expected future job performance is forward looking(Lewis, 2006). It could have a link with customer focus and reward behaviours or attitudes such as co-operation, courtesy and communication (Kessler, 2005). Therefore, 12 leadershi p skills as a part of competencies can be combined with the approaches meanwhile large portion based on customers satisfaction can be changed.As the notion of human resources as key assets has been widely accepted, competence-based payment system encourages and motivates managers incentives and innovation, providing them with a flexible reward. White and Drucker (200019) mentions that effective business performance depends on individual performance and seems to support for performance for the person rather than pay for the job including equal pay for equal work. Therefore, payment may be associated with forms of competencies-based pay, with reward to mould behaviour and encourage great responsiveness to change.Total reward approach for employeesTotal reward combines the base salary and other benefits such as recognition, autonomy or opportunity (IRS, 2003a). It has ability notice personal difference and circumstance, containing a base salary, development opportunities or flexible working hours(Lewis, 2006), allowing rewards to be offered which meet diverse needs. Therefore it can go for employees base salary meanwhile can meet individuals particular needs.To some extent, come up reward approach ensures the base salary which guarantees the job security and faithfulness in the fixed pay. The sense of fairness has a positive effect on the employees working efficiency. Employees can be encouraged when their efforts will lead to better performance and be rewarded fairly to satisfy base needs (Martinez and Madigan, 2001).Although the amount of reward is quite small, it could make people feel appreciated and motivated (Kessler,2005).Take welfare for example, it has an effect on individuals and organisation. It could be improved by HR practices, such as building up flexible work patterns, conducting health and safety training programs or establishing work-life balance.Other elementsReward management, one of the key levers in pursuit of effective HRM, should be s tructured to meet HR objectives (White and Drucker, 200026).Additionally, there are at least other three elements deserved in HR practices. Reilly (2003) suggest that better attention also should allocate adequate time for implementation, including training, communication and guidance, monitor and evaluating the outcome and discovering what has been learned from the results.Recruitment and selectionStorey and Wright (2001) presented that it is apparent that the notion of labour as a competitive advantage underpins the HRM practices, including reward management system. Actually, the design of the reward management should consider recruited individuals need.Effective recruitment and selection can enhance the business performance, because it selects the right people who can match to job requirements. Besides, the ticklish approach, selecting candidates from the organisation, implies a long-term investment in training and development or a reward scheme. It could improve employees loyal ty and retention. Conversely, hard approach brings new ideas, skills into the organisation (Storey and Wright, 2001). Better reward system can attract more competitive and qualified candidates.Training and developmentTraining and development is a primary task which is helpful to implement the reward approaches in HR practices. As the perspective of the enterprises, training is to increase the competitiveness in the marketplace. Besides, usurp training programs can be a method reward, improving the retaining rate. It could increase job satisfaction and improve employees loyalty to the company. Basadur (2004) indicated that training improves performance by finding, solving problems, and implementing solutions.In employees point of view, they can get the opportunities to get access to higher rewarded position by obtaining tacit knowledge, skills from the attendance of training. Training can make people more willing to start more and better ideas to solve problems. Besides, training p rograms can help employees have a better understanding of reward management approaches.AssessmentAs a key part of HR practices, appraisal should underpin the whole process, connecting to the orgainisational strategy. Assessment techniques, such as 360 degree appraisal feedback or Sears TPI, have certain drawbacks other than the working performance should be measured, monitored and controlled.The immediate and accurate assessment ensures is pivotal. Geary (1992) also suggested that the effectiveness of the reward system depends on the method of selecting and implementing the system rather than itself. The on-going assessment of performance provides timely adjustments to improve performance with a possibility (Gold, 2003).ConclusionIn the article, it has been analysed primary external and internal forces for Sears transformation. The external reasons are the threat from competitors, the loss of customers and employees extra workload. In terms of internal reasons, the significant cause is to obtain the long-term financial profit. The other is the bureaucracy culture. Secondly, main problems of Sears reward management are analysed from the perspectives of managers and employers. In the standpoint of managers, the main issues are the insecurity of pay, widely applying leadership model which ignores the specific, technical skills and pressures from too much training programs. As for employees, incentive pays could mount the extra workload and high turnover requires the constant improvement of the effectiveness of communication.In the following part, the alternative reward approaches are discussed respectively. Competency-based approach is recommended for managers meanwhile total reward approach is the recommendation for employees. Lastly, three elements which internally connect to reward management in HR system are reviewed effective recruitment and selection, appropriate training and development and on-going assessment.(Word account = 1994)

Capital structure and approaches to capital structure

ceiling bodily building and approaches to jacket crown organiseIt is defined as the meld or proposition of a homes permanent long-term financing represented by debt, preference stock, and common stock rightfulness.Capital structure theory suggests that steadfasts model what is often referred to as a target debt ratio, which is based on various tradeoffs between the exists and benefits of debt versus virtue.The term smashing structure refers to the percentage of gravid ( gold) at work in a business by type. Broadly speaking, at that place atomic number 18 dickens forms of upper persona integrity groovy and debt smashing. Each has its own benefits and drawbacks and a substantial part of wise corpo array stewardship and management is attempting to find the perfect upper-case letter structure in toll of risk / reward payoff for shargonholders. This is unfeigned for Fortune 500 companies and for small business owners trying to determine how much of their startup m unrivalledy should come from a bank loan without endangering the businessLets relish at each in detail integrity CapitalThis refers to money put up and owned by the sh atomic number 18holders (owners). Typically, fair play superior consists of two types 1) contributed expectant, which is the money that was originally invested in the business in exchange for sh ares of stock or ownership and 2) bear meshwork, which represents profits from past years that save been kept by the corporation and used to strengthen thebalance sheetor fund growth, acquisitions, or expansion.Many consider equity capital to be the most dear(predicate) type of capital a company can utilize because its live is the return the firm essential earn to attract investment. A speculative excavation company that is looking for silver in a remote region of Africa may require a much higherreturn on equityto get investors to purchase the stock than a firm such as Procter Gamble, which sells everything from t oothpaste and shampoo to detergent and beauty products.Debt CapitalThe debt capital in a companys capital structure refers to borrowed money that is at work in the business. The safest type is generally considered long-term bondsbecause the company has years, if non decades, to come up with the principal, while paying cheer lone(prenominal) in the mean measure. new(prenominal) types of debt capital can include short-term commercial paper utilized by giants such as Wal-Mart and General voltaic that amount to billions of dollars in 24-hour loans from the capital merchandises to meet day-to-day working capital requirements such as payrolland utility bills. The embody of debt capital in the capital structure depends on the health of the companys balance sheet a triple AAA measured firm is going to be able to borrow at exceedingly low rank versus a speculative company with tons of debt, which may have to pay 15% or more in exchange for debt capital.Other Forms of CapitalThere are actually other forms of capital, such asvendor financingwhere a company can sell goods forwards they have to pay the bill to the vendor, that can drastically subjoin return on equity but dont hail the company anything. This was one of the secrets toSam Waltons success at Wal-Mart. He was often able to sell Tide detergent before having to pay the bill to Procter Gamble, in effect, using PGs money to grow his retailer. In the solecism of an insurance company, the policyholder float represents money that doesnt belong to the firm but that it gets to use and earn an investment on until it has to pay it out for accidents or medical bills, in the case of an auto insurer. The cost of other forms of capital in the capital structure varies greatly on a case-by-case basis and often comes mickle to the talent and discipline of managers.SEEKING THE OPTIMAL uppercase STRUCTUREMany middle class individuals believe that the goal in life is to be debt-free. When you chain the upper ech elons of finance, however, that idea is almost anathema. Many of the most successful companies in the world base their capital structure on one simple consideration the cost of capital. If you can borrow money at 7% for 30 years in a world of 3% inflation and reinvest it in shopping mall operations at 15%, you would be wise to consider at least 40% to 50% in debt capital in your overall capital structure.Of course, how much debt you take on comes down to how secure the revenues your business generates are if you sell an indispensable product that people simply must have, the debt pass on be much lower risk than if you operate a theme park in a tourist town at the height of a pick up mart. Again, this is where managerial talent, experience, and wisdom comes into play. The great managers have a knack for consistently lowering theirweighted average cost of capitalby increasing productivity, seeking out higher return products, and more.To truly understand the idea of capital struc ture, you need to take a few moments to read Return on Equity The DuPont Modelto understand how the capital structure represents one of the three components in determining therate of returna company will earn on the money its owners have invested in it. Whether you own a doughnut shop or are considering investing in publicly traded stocks, its knowledge you simply must have.Question on our minds Can the perfect valuation of a company (debt+equity) and the cost of capital be affected by changing the financing mix. The imperfections in the market play a snappy role in the valuation of a company. This data is of utmost importance to the suppliers of capital. Changes in the financing mix are assumed to occur by issuing debt and repurchasing common stock or by issuing common stock and retiring debt.Example 1. Assume a company whose earnings are non expected to grow and which pays out all of its earnings to its shareholders in the form of dividends. All kinds of market imperfections ar e not considered in the current example, for simplicity in calculations.We are concerned mainly with 3 different rates of return. The first isThe yield on companys debt, ki = =The jiffy rate of return that we are concerned with iske = =With our assumptions that the firms earnings are not expected to grow and which has a 100 percent dividend payout, the firms earning per price represents the market rate of discount that equates the present protect of the perpetual stream of expected constant future dividends with the current market price of the common stock.The third rate to be calculated isko = =These 3 different rates of return affect the amount of financial supplement, which is the debt to equity ratio.ko is defined as the overall capitalization rate of the firm. It is designed as the weighted average cost of capital, and can also be expressed asko = ki + ke Calculating A Companys Capital bodily structureReview your companys most recent financial conjurements to find all o f the capital components. Highlight all of the debt of the company and the equity (including common and favored shares, capital contributions and retained earnings).Add up the total debt and equity It will be equal to your companys assets on the balance sheet because the debt and equity is what paid for those assets.Your capital structure is the percentage that each funding source represents of your companys total funding. Lets look at an example. Lets say you have the following capital components bank loan $176,500, retained earnings $54,300, common stock $12,500. That makes your total capital $243,300. To calculate your capital structure, take the dollar amount of each capital source and divide it by the total capital. In the above example, the bank loan is 72.5%, retained earnings 22.3%, capital stock 5.2% for a total of 100%.Monitor your companys capital structure over time. Debt tends to be the most expensive source of capital and, over time, you will determine the most effect ive blend of debt versus equity financing for your feature situation. Calculating your actual capital structure will allow you to track how closely you are following your ideal capital structure.Factors Affecting Capital StructureThe factors that affect the decisions taken regarding capital structure can be divided into three major typesInternal FactorsExternal FactorsGeneral FactorsINTERNAL FACTORSCost of CapitalThe cost of capital is the cost of the companys funds. It consists of debts and equity. When a company raises funds for its operations there are sure costs involved. When decisions regarding the capital structure are taken, managers curb that the earnings on the capital are more than this cost of capital. In general, the cost of borrowing capital is little than the cost of equity capital. This is because the interest rate on loans and borrowings is less than the dividend rates and also the dividends are a function of the companys profits and not expenditure.Risk FactorW hen decisions regarding capital structure are to be taken, the risk factors considerations are an important issue. If company raises its funds through debts, the risks involved are of two typesThe company has to repay the lenders in a fixed time period and at a fixed rate, whether or not the company makes profit or goes into loss.The borrowed capital is secured capital. Hence, if the company fails to make the payments, the lenders can take self-denial of the companys assets.If the company goes for funds through equity capital there are minimum risks. As the dividends are an appropriation of the companys profits, if it does not make any profit, it is not obliged to make the payments. In contrast to debt capital, here the company is not expected to repay its equity capital. And also the equity capital is not secured. go out FactorWhen additional funds are to be raised, the control factors are very essential in deciding the capital structure of the company. When a company decides to i ssue further equity shares the control of the company may be at stake. Hence, it may not be acceptable to its shareholders and owners. This factor is not vital in case of debt financing, except when financing institutions stipulate the appointment of nominee directors in the Board of Directors of the company.Objects of Capital Structure PlanningThey are-Maximize profit of the owners reward transferable securitiesIssue further securities in a way that does not dilute the holdings of the present ownersEXTERNAL FACTORSGeneral Economic Conditions If the economy is in the state of depression, equity funding is considered as it involves less risk. While, if the economy is booming and the interest rates are forecasted to fall, debt funding is given preference. care Rate Levels If the interest rates are high in the capital market, equity funding is preferred until the interest rate levels fall down.Policy of Lending Institutions If the terms and policies of the financing institutions are ri gid and harsh, debt financing should be ignored and equity financing should be tapped.Taxation Policy The government has taxation policies which include corporate taxes as sanitary as individual taxes. The government includes individual taxes on both borrowings as well as dividends. Also income tax deductions are offered on interests paid on borrowings. All these factors have to be considered while planning capital structure.Statutory Risks While planning Capital Structure, the statutory risks given by the Government and other statutes are to be considered.GENERAL FACTORSConstitution of the company If the company is private limited, the control factors are essential while if the company is public limited, the cost factors are essential.Characteristics of the company Companies which are small and in the early pegleg have weak credit standings and bargaining capacity, hence they have to rely on equity financing. While big companies have strong credit standings and they can source th eir funds from borrowings with acceptable interest rates.Stability of earnings The companies which have stable earnings and the risks involved are less, go for debt funding as they can handle the high risk factors. While companies whose earnings are forecasted to be fluctuating, usually go for less risky equity funding.Attitude of the Management For a company with conservative management, the control factor is more important, while a company with a liberal management considers the cost factors to be more important.Approaches to Capital Structure final Operating Income Approach tralatitious ApproachNet Income ApproachModigliani milling machine ApproachNet Operating Income ApproachDavid Durand proposed the lolly income approach to capital structure. This approach looks at the consequence of alterations in capital structure in terms of bread operating income. under this approach, on the basis of net operating income, the overall value of the firm is measured. Therefore this approach is identified as net operating income approach.The NOI approach entails thatLargely the value of the firm does not depend on the microscope stage of leverage in capital structure and hence any(prenominal) may be the change in capital structure the overall value of the firm is not affected.In the same way, the overall cost of capital is not affected by any change in the degree of leverage in capital structure. The overall cost of capital is independent of leverage.Under the net income approach, the overall cost of capital is unaffected and carcass constant irrespective of the change in the ratio of debts to equity capital when the cost of debt is less than that of equity capital whereas it is assumed the overall cost of capital must decrease with the increase in debts. How is this assumption justified? With the increase in the amount of debts the degree of risk of business increases. As a result the rate of equity over investment in equity shares thus on one hand the WACC decrease s with the increase in the amount of debts on the other hand cost of equity capital increases to the same tune. Therefore the benefit of leverage is mopped away and the overall cost of capital remains at the same level.In other words there are two parts of the cost of capital.Interest charges on debentures.The increase in the rate of equity capitalization resulting from the increase in risk of business due to higher level of debts.OPTIMUM CAPITAL STRUCTUREThis approach suggests that whatever the degree of indebtedness of the company, market value remains constant. Despite the change in the ratio of debt to capital in the market value of its equity shares remains constant. This means that there is no optimal capital structure. Each capital structure is optimal in approach of net operating incomeThe market value of the firm is determined as followsThe value of equity can be determined by the following equationandThe Net Operating Income Approach is based on the following assumptionsE xampleABC Ltd., is expecting an earnings before interest tax of Rs.1,80,00,000 and belongs to risk class of 10%. You are required to find out the value of firm % cost of equity capital if it employs 8% debt to the extent of 20%, 35% or 50% of the total financial requirement of Rs. 90000000.SolutionStatement showing value of firm and cost of equity capital20% Debt35% Debt50% DebtEarnings before interest tax EBIT ($)180000001800000018000000Overall cost of capital10%10%10% time value of firm (V) =EBIT Cost of CapitalEBIT/Cost of Capital180000000180000000180000000 shelter of 8% debt (D)18000000 (20% - 90000000)31500000 (35% - 90000000)45000000 (50% - 90000000)Value of equity (V D)162000000148500000135000000Net profit (EBIT Interest)16560000 (18000000 1440000)15480000 (18000000 2520000)14400000 (18000000 3600000)(Cost of equity (Kc)10.22%10.42%10.66%(Net profit/value of equity) - 100(16560000/ 162000000)( 15480000/ 148500000)( 14400000/ 135000000)It is apparent from the above comp utation that the overall cost of capital value of firm re-constant at different levels of debt i.e., at 20%, 35% and 50%. The benefit of debt content is offset by increase in the cost of equity. The overall cost of capital (k0) remains constant and can be verified as followsOverall Cost of Capital k0 = kd (D/D+S) + Ke (S/D+S)20% DebtK0 = $4,00,000/$40,00,000 -8% + $36,00,000/$40,00,000 X 10.22%= 0.008 + 0.092= 0.10 or 10%35% DebtK0 = $7,00,000/$40,00,000 -8% + $33,00,000/$40,00,000 X 10.42%= 0.014 + 0.0859= 0.0999Or 10%50% DebtK0 = $10,00,000/$40,00,000 - 8% + $30,00,000/$40,00,000 X 10.66%= 0.02 + 0.07995= 0.0995 or 10%Traditional ApproachTraditional approach is amiddle-way approach between net operating income approach the net income approach. According to this approach(1) A bestcapital structuredoes exist.(2) foodstuff value of the firm can be increased and average cost of capital can be reduced through a prudent usage of leverage.(3) The cost of debt capital increases if debt s are increases beyond a definite limit. This is because the greater the riskof businessthe higher therate of interestthe creditors would ask for.The rate of equity capitalization will also increase with it. Thus there remains no benefit of leverage when debts are increased beyond a certain limit. The cost of capital also goes up.Traditional ApproachThus at a definite level of mixture of debts to equity capital, average cost of capital also increases. Thecapital structureis optimum at this level of the mix of debts to equity capital.The effect of change incapital structureon the overall cost of capital can be divided into three stages as followsFirst stageIn the first stage the overall cost of capital falls and the value of the firm increases with the increase in leverage. This leverage has beneficial effect as debts as debts are less expensive. The cost of equity remains constant or increases negligibly. The proportion of risk is less in such a firm.Second stageA stage is reached w hen increase in leverage has no effect on the value or the cost of capital, of the firm. Neither the cost of capital falls nor the value of the firm rises. This is because the increase in the cost of equity due to the assed financial risk offsets the advantage of low cost debt. This is the stage wherein the value of the firm is maximum and cost of capital minimum.Third stageBeyond a definite limit of leverage the cost of capital increases with leverage and the value of the firm decreases with leverage. This is because with the increase in debts investors begin to realize the degree of financial risk and hence they desire to earn a higher rate of return on equity shares. The resultant increase in equity capitalization rate will more than offset the advantage of low-cost debt.It follows that the cost of capital is a function of the degree of leverage. Hence, an optimumcapital structurecan be achieved by establishing an appropriate degree of leverage incapital structure.Net Income Appr oachThis approach states that, the cost of debt and the cost of equity do not change with a change in the leverage ratio(when D/E changes), due to which it is observed that there is a weakening in the cost of capital as the leverage increases. The cost of capitalcan be calculated by the use Net income approach weighted average of cost of capitalcan be explained by the following equationhttp//lh6.ggpht.com/cemismailsezer/R4_ZkNJ-ThI/AAAAAAAAADY/RZYaGVynnUw/image%5B5%5DwhereKo average cost of capitalKd cost of debtKe cost of equityB market value of debtS market value of equityAs we know that cost of debt is less than cost of equity (Kdhttp//lh6.ggpht.com/cemismailsezer/R4_ZlNJ-TjI/AAAAAAAAADo/de5aDk2tbUo/image%5B8%5DThe Net Income Approach assembles the investment structure of the firm which has a major influence on the value of the firm. Therefore, the use of control will change both the worth of the organisation cost of capital. Net Income is exploited in approaching the market val ue that firm possesses. In this analysis Ka decreases when the D/E ratio increases as the proportion of debt, cheaper source of finance, increase in the capital structure vice versa.Assumptions of net income approachthe perception of risk is not altered by the use of liability for the investors as a result, the equity capitalisation rate i.e. ke, and the debt capitalisation rate kd, remain constant with changes in leverageThe debt capitalization rate is less than the equity capitalization rateThe corporate income taxes are not considered.Numerical exampleAssume that a firm has an expected annual net operating income of Rs.2, 00, 000, an equity rate, ke, of 10% and Rs. 10, 00,000 of 6% debt.The value of the firm according to NET INCOME approachNet Operating Income NOI 2, 00,000Total cost of debt Interest= KdD, (10, 00,000 x .06) 60,000Net Income Available to shareholders, NOI I 1, 40,000ThereforeMarket Value of Equity (Rs. 140,000/.10) 14, 00,000Market value of debt D (Rs. 60,000/. 06) 10, 00,000Total 24, 00,000Note The cost of equity and debt are respectively 10% and 6% and are assumed to be constant under the Net Income ApproachKo = Kd (D/V) + Ke (S/V)= 0.06 (10, 00,000/24, 00,000) + 0.10 (14, 00,000/24, 00,000)= 0.025 + 0.0583 = 0.0833 or 8.33%Modigliani Miller (MM) ApproachAssumptions of the MM ApproachCapital market is perfect. It is so whenInformation is freely availableProblem of asymmetric information does not existTransaction cost is nilThere is no bankruptcy costSecurities are amply divisible100% payout ratioInvestors and managers are rationalManagers act in interest of shareholdersCombination of risk and return is rationally chosenExpectations are homogenousEquivalent risk classNo taxesInvestors can borrow in personal A/C at same terms of firm. proposition IValue of the form is equal to the expected operating income divided by discount rate appropriate to its risk class.It is independent of capital structure i.e.where,V = Market Value of the FirmD = Market Value of the debtE = Market value of the equityO = Expected Operating Incomer = rebate rate applicable to risk class to which firm belongsProposition I is almost similar to the Net Operating Income Approach. MM used arbitrage communication channel to prove this approach. MM argues that identical assets must sell for same price, irrespective of how they are financed.Arbitrage ProcessIf the price of a product is unequal in two markets, traders buy it in the market where price is low and sell it in the market where price is high. This phenomenon is known as price differential or arbitrage. As a result of this process of arbitrage, price tends to decline in the high-priced market and price tends to rise in the low-priced market social unit the differential is totally removed.Modigliani and Miller explain their approach in terms of the same process of arbitrage. They hold that two firms, identical in all prise except leverage cannot have different market value. If two identi cal firms have different market values, arbitrage will take place until there is no difference in the market values of the two firms.ExampleLet us suppose that there are two firms, P and Q be to the same group of homogenous risk.Firm P is unlevered as its capital structure consists of equity capital onlyFirm Q is levered as its capital structure includes 10% debentures of Rs.10,00,000According to traditional approach, the market value of firm Q would be higher than that of firm P.But according to M-M approach, this situation cannot persist for long. The market value of the equity share of firm Q is high but investment in it is more risky while the market value of the equity share of firm P is low but investment in it is safe.Hence investors will sell out equity shares of firm Q and purchase equity shares of firm P. whence the market value of the equity shares of firm Q while fall, while the market value of the equity shares of firm P will rise. Through this process of arbitrage th erefore, the market values of the firms P and Q will be equalized. This is true for all firms belonging to the same group. In equilibrium situation, the average cost of capital will be same for all firms in the group.The opposite will happen if the market value of the firm P is higher than that of the firm Q. In this case investors will sell equity shares of P and buy those of Q. Consequently market values of these two firms will be equalised.Proposition IIMM Proposition II states that the value of the firm depends on three thingsRequiredrateof return on the firms assets (ra)Cost of debt of the firm (rd)Debt/Equity ratio of the firm (D/E)An increase in financial leverage increases expected Earnings per Share (EPS) but not share prices. Proposition II states that an expected rate of return of shareholders increases with financial leverage. Expected ROE is equal to expected rate of return on assets plus premium.The formula for re isre = ra + (ra-rd)x(D/E)Implications of Proposition II -rd is independent of D/E and hence re increases with D/E.The debt crosses an optimal level, the risk of default increases and expected return on debt rd increases.Limitations of MM Approach-Leverage irrelevance theory of MM is valid if perfect market assumption is correct but actually it is not so.Firms are able to pay taxes and investors also pay taxes.Bankruptcy cost can be very high.Managers have their own preference of a type of finance.Managers are better informed than shareholders i.e. asymmetry of information exists.Personal leverage is not possible to be substitute of corporate leverage.100% payout ratio is not possible normally.Analysis of CompaniesTVS MotorsTVS Motors hold one of the top ten two wheeler manufacturer and number three positions in Indian market, with turnover of $1 billion in 2008-2009 and is the flagship division of TVS group which is of worth $4 billion. TVS Motors manufactures full range of two wheelers ranging from two wheelers for domestic use to two wheelers for racing. Manufacturing units are located atHousar and MysoreHimachal PradeshIndonesiaHas production capacity of 2.5 million units per year with strength in design and development TVS has recently launched 7 new products. Till now TVS has interchange more than 15 million two wheelers and has employed 40000. TVS motor is the only Indian company to win Deming award for quality control in 2002. TVS Network spans over 48 countries.Particulars2007-08 (in crores)2008-09(in crores) direct INCOME45.31121.08INTEREST ON DEBT( I)11.4764.61EQUITY EARNING33.8456.47 salute OF EQUITY (Ke)4.13%4.21%MARKET VALUE OF EQUITY819.371341.33COST OF DEBT (Kd)1.72%7.13%MARKET VALUE OF DEBT666.34905.98VALUE OF FIRM1485.712247.31COST OF CAPITAL (Ko)3.05%5.39%WACC CalculationFor 2007-08WACC= weke + wdkdWe = E/(D+E)Wd = D/(D+E) = 1/(1.84) x 0.413 + 0.84/(1.84) x 0.172= 0.2284 +0.078 = 3.051%For 2008-2009WACC= weke + wdkdWe = E/(D+E)Wd = D/(D+E) = 1/(2.11) x 4.21 + 1.11/(2.11) x 7.13=1.995 +3.750= 5.7 5%Hero HondaHero Honda Motors Limited is largest and most successful two wheeler manufacturers in India and it is India based. Hero Honda was a joint venture between Hero group and Honda of Japan till 2010 when Honda sold its entire stake to Hero. In 2008-09 Hero Honda sold 3.7 million bikes with 12% growth rate and captured 57% of Indian markets share. Hero Honda Splendor is worlds largest selling motorcycle sold more than 1 million units in 2001-03.CUsersAAdityaDesktopindex.jpgIn December 2010, the Board of Directors of the Hero Honda sort have decided to terminate the joint venture between Hero multitude of India and Honda of Japan in a phased manner. The Hero Group of India would buy out the 26% stake of the Honda in JV Hero Honda. Under the joint venture Hero Group could not sell into international markets and the termination would mean that Hero Group can exploit global opportunities now. Since last 25 years the Hero Group relied on their Japanese partner Honda for R D for new bike models. So there are concerns that the Hero Group might not be able to sustain the performance of the Joint Venture alone.WACC calculationFor 2007-08WACC= weke + wdkdWe = E/(D+E)Wd = D/(D+E) = 1/(1.07)x34.73%+0.07/(1.07) x 8.33% = 33%For 2008-09WACC= weke + wdkdWe = E/(D+E)Wd = D/(D+E) = 1/(1.04)x32.41%+1.04/(1.04)x10.20% = 31.55%Particulars2007-08(in crores)2008-09(in crores)OPERATING INCOME1201.961367.77INTEREST ON DEBT( I)13.7613.47EQUITY EARNING1188.221354.3COST OF EQUITY (Ke)34.73%32.41%MARKET VALUE OF EQUITY3421.254178.65COST OF DEBT (Kd)8.33%10.20%MARKET VALUE OF DEBT165.18132.05VALUE OF F

Effects of Price Changes in Customers

Effects of Price Changes in Customers request and supply are deuce very basic and important terms in economics to see and determine the trade equilibrium. A grocery is the process of buyers and sellers exchanging corrects and services. Buyers, as a group, determine the demand side of the market, whether it is consumers purchasing thoroughlys or firms purchasing inputs. On the former(a) hand, sellers, as a group, determine the supply side of the market, whether it is firms selling their goods or re blood line owners selling their inputs. It is the interaction of buyers and sellers that determines market values and output through the forces of supply and demand.Demand simply means the ability and willingness of consumer to buy certain cadence of goods and services at a occurrence worth. According to the law of demand, the metre of a good or service demanded varies inversely with its expense, other things equal. A demand bend dexter is a downward sloping curve and it shows n egative or inverse kin between scathe and mensuration demanded. When the charge increases, the quantity demanded by consumer decreases, conversely, when the worth decreases, the quantity demanded by consumer increases. A change in quantity demanded is a trend along the demand curve, when expenditure increases, refer A moves to point B, and point A moves to point C when there is a wrong drops as jut out 1 shown. Movement along the curve occurs only when there is a price change.There are several reasons why the relationship between price and quantity demanded is negative or inverse. Observed behavior tells us that consumers will buy more goods and services at scorn prices than higher prices, ceteris paribus. Diminishing bare(a) utility is also one of the reasons, it means in a given time period, a buyer will receive less satisfaction from severally successive unit consumed, therefore, consumers will only buy added units if the price were reduced. Whereas, a change in d emand is a shift of the demand curve, demand curve shift rightward when demand increases and shift leftward when there is a drop in demand. A shift on the curve is caused by the other factors than the price of the good such as government activity regulations and technology change.When there is a price change, there will be two pieces on consumers. First, the substitution effect is an effect caused by a rise in price that induces a consumer (whose income has remained the same) to buy more of a relatively lower-priced good and less of a higher-priced one. For instance, when the price of coffee increases, there are many an(prenominal) close substitute goods as options to replace coffee, and consumer can replace coffee by tea with the same amount of income that they are holding and the same price of tea. In this case, it brings a result that the quantity demanded for coffee decreases and the demand for tea increases.Generally, the consumption of goods and services is vastly colligat e to the income available to consumers. Income effect suggests that at a lower price, one can afford more of the good without giving up any alternative goods. In other words, a drop in price will increase the purchasing power of an individual, thus, they are able to buy more of the product than before. For instance, initially, the price of a product is RM200 per unit, and the constant income of an individual is RM1200, this individual is able to acquire 6 units. However, when the price of the product increases to RM220 per unit, he or she can only purchase 5 units.A fracture from that, the other important term is supply. Supply means the ability and willingness of producer to produce and supply certain amount of goods and services at a particular price. A supply curve is an upward sloping curve and it shows a positive or direct relationship between price and quantity supplied. When price increases, the quantity supplied increases as well, vice versa, the quantity supplied drops whe n there is a decrease in price. Changes in prices of a good lead to changes in quantity supplied, which are shown as movement along the supply curve in figure 2 from point A to point B to point C. Changes in supply occur for other reasons than changes in the price of the product itself. For instance, natural disaster, expected future price and many more. A change in any other factor can affect supplier behavior results in a shift of the entire supply curve. A leftward shift is a decrease in supply, and a rightward shift is an increase in supply.Market equilibrium is a situation where quantity demanded equals to quantity supplied at a particular price. The market equilibrium is found at the point E at which the market supply and market demand curve intersect as shown in figure 3. The price at the ware of the market demand curve and market supply curve is called the equilibrium price, P* and the quantity at the intersection of the market demand curve and the market supply curve is ca lled the equilibrium quantity Q*.A shortage exists at when the quantity demanded exceeds the quantity supplied, whereas, a redundance exists at when the quantity supplied exceeds the quantity demanded. For example, when the market equilibrium price is at RM10 and it change magnitude to RM15, then there will be a free of 20 units in figure 4. The quantity demanded dropped to 10 units. Hence, the solution is to decrease the price to market equilibrium price, RM10, to achieve market equilibrium. In figure 5, there is a shortage of 20 units. Suppose the market equilibrium price is also RM10 and the price is decreased to RM5, the quantity demanded increased to 30 units. Thus, it brings a result that quantity demanded exceed quantity supplied which means shortage. To resolve this problem, the price has to be increased to the market equilibrium price, RM10.There are various types of government policies to change the market equilibrium. In an open-market, government intervenes to control the market prices to make improvements on the development and economy of the country as well as social well-fare in see to it of a conflict that consumer always wants lower prices and supplier wants higher prices. Besides, government intervention in the market also with aims to correct the market failure and diminish the income inequality.The motivations for price controls vary with the market under considerations. Government put downs a price chapiter for goods deemed important to low-income households such as flour. A price ceiling is a legal maximum on the price at which a good can be sold. Conversely, a price floor is a legal stripped on the price at which a good can be sold, it is often set by government for prosecutes, since wages are the main source of income for households.When government imposes a price ceiling on a product, there are two possibilities, either a binding or a non-binding price ceiling. However, for a price ceiling to be effective it should be a bindin g price ceiling and the price ceiling must be set below equilibrium. A price ceiling set above the equilibrium is a non-binding price ceiling, and the price will go back to the equilibrium price leveltually by the demand and supply forces. In Malaysia, during the festive season, The Ministry of Domestic Trade, Co-Operatives and Consumerism will impose price ceilings on the essential goods for various festivals. In a recent year, 2013, the Controlled Price Goods Scheme have obligate price ceilings for 20 essential goods including standard chicken, super chicken, local beef, imported beef and so on. For instance, as figure 6 shown, the market price of chicken per kg was initially RM8.50 and the government improve the price ceiling at RM7.70 per kg which is 70sen lower than the market price. This price ceiling was in force for 17 days only, from 26th July to 11th August 2013 for the festival, Hari Raya Aidilfitri (Themalaysianinsider.com, 2013). The objective of setting the maximum price for the essential goods is to suspend the sellers raising the prices of the essential goods for Hari Raya Aidilfitri. When a price ceiling is imposed, the quantity demanded will exceed the quantity supplied, and a shortage will occur (Thesundaily.my, 2013).Price ceiling is often applied on take in controls, the objective of controlling the prices of rent is usually to counteract the inequality of bargaining power between landlords and tenant, as part of a minimum set of rights to make the market fair. It is very well-known that there has always been housing shortage in New York City, therefore, to avoid rent hikes caused by housing shortage, New York State legislators defend the War Emergency Tenant Protection Act to protect the tenants from rent hikes. For instance, the equilibrium rent is $ curtilage per unit per month, and the government imposes a price ceiling below the equilibrium rent at $800 per unit per month as shown in figure 7, thus, the price of rent can non go a ny higher when it hits the price ceiling and the maximum price of rent will be $800 per unit per month. Rent ceiling is imposed to protect the low-income households in the short run but the long run impact is to avoid abandon of property out of the reason that the investors are not willing to purchase or construct new housing with low rents, because it is unprofitable to the investors. Beside the benefit of low rent for tenants, there is also a uncool impact on tenants. When the rents are low, the landlords tend to provide improper maintenances, poor repairs and painting in order to minimize the cost of renting to make more profit (Block, 2008).As it was mentioned before, price floor is the same as price ceiling but the opposite, it is a legal minimum on the price at which a good can be sold. The best example would be wages as it is the primary resource of most households incomes. For example, the New York government has fixed a minimum wage at $8.75 which is above the equilibrium wage ($8.00) in 2014 as figure 8 shown, the wages cannot go any lower than $8.75 as it hits the price floor. This price floor is effective and is called binding price floor. Therefore, the minimum wage is now fixed at $8.75, and the market wage is equals to the price floor (Labor.ny.gov, 2013). Thus, for a price floor to be effective, it must be fixed above the equilibrium wage which is called a binding price floor, a price floor that is set below equilibrium is a non-binding price floor.When a price floor is imposed, there will be a surplus of low-skilled workers, because it would produce willing workers who will be unable to find jobs, an increase in the minimum wage would create additional unemployment for low-skilled workers. The unemployment impact of the minimum wage falls vastly on the least experienced, least skilled persons, often teenage labour, holding the lowest paying jobs.In the most recent case, the Malayan government has increased the price floor for the acquisition of property for inappropriate buyers from RM500000 (2010) to RM1million in Federal Territories of Kuala Lumpur, Putrajaya and Labuan, according to a circular issued by Economic plan Unit (EPU) of the Prime Ministers surgical incision on 1st March (Thestar.com.my, 2014). The main reason for this implementation is aim to control the ownerships of properties by foreign interests. Refer to figure 9.Beside imposing price floor and price ceiling, the government also intervenes to change market equilibrium through taskes and subsidies. There are two forms of taxes, direct and indirect tax. Direct tax is a fee levied by government on income, whereas, indirect tax is a fee levied by government on the price of goods and services, and indirect tax is the tax that able to make changes on market equilibrium. The objective of collecting taxes is to finance government expenditure, and the government uses the salt away taxes for public infrastructure such as streetlamp and so on. Another reaso n is to discourage of production and consumption. The changes in demand and supply curve vary from the tax levied on sellers or buyers. When government levies taxes on buyers, the consumers tend to buy less. On the other hand, when tax is levied on suppliers, the cost of production will be increased and the suppliers tend to produce less.Just like many other countries do, Malayan government is imposing Goods and Services Tax (GST) organized by Royal Malaysia usance Department starting on 1st April 2015 in response to the fiscal deficit that Malaysia is experiencing. GST is an indirect tax based on consumption that applied on all goods and services and it is set at 6%. GST is imposed to provide more revenues to government besides income tax, it is also said to offer a more comprehensive, efficient, transparent and effective tax system (Khoo et al, 2013). As shown in figure 9, when GST is imposed, the supply of goods and services will decrease from SS to SS1 and causes prices rise f rom P to P1, and the equilibrium quantity will decrease from Q to Q1, thus, the new equilibrium is at E1.Apart from GST, imported motor fomite tax in Malaysia is very high and it can be taxed up to 100 percentage or even more. According to Malaysian Automotive Association (MAA), the excised duty imposed on vehicle ranges from 65 percent to 105 percent on top of the 10 percent sales tax. A Japan-made 2013 Toyota Prius, the price after tax is around RM140000 but a in like manner equipped Prius sells for only around RM80,000 in the US and Japan (Hans, 2013). The objective is to reduce the loss of Ringgit Malaysia outflow to foreign country and protect local vehicle manufacturing industry. The local vehicle manufacturers, Proton and Perodua are heavily supported by the Malaysian government through the National Automotive Policy (NAP) (Lee, 2013). This is the reason why the price of vehicle in Malaysia is very expensive as shown in figure 10.Lastly, allowance can also change the marke t equilibrium and it may be regarded as a negative tax. Subsidy is a benefit given by the government to groups or individuals usually in the form of a gold payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public. A subsidy might be given to assist the poor, to help producer and to encourage consumption of goods and services.The Malaysia government has been subsidizing grooming oil since 1992, and more than RM1billion will be given out to stabilize the price of grooming oil every year. Without subsidy, the price of cooking oil was RM3.50 per kg, and the subsidized price is RM2.50. Refer to figure 11, when the cooking oil is subsidized, the supply will shift rightward which is an increase in supply from SS to SS1, then the price of cooking oil drops and the quantity increases from Q to Q1. The government provides subsidy for cooking oil is targeted for household consumers, unfortunately, 30 to 35 percent of subsidized cooking oil are flow to the restaurant operators, hawkers and small-scale food-based industry, it is also said that even 10 percent of them has flowed to foreign countries (Adnan, 2012).On 2nd October 2014, there was a decrease of 20sen on fuel subsidy and the price has increased from RM2.10 per liter to RM2.30 per liter. As shown in figure 12, the supply for fuel decreases from SS to SS1 and the quantity decreases from Q to Q1. The Prime Minister of Malaysia, Datuk Seri Najib Razak who is also the finance minister stated that the reduction in fuel subsidy is due to the reduced revenue for national expenditure. The fuel subsidy was also reduced for other assistance such as education aid and many more (Ahmad and Singh, 2014).Reference ListAdnan, H. (2012).Archives The Star Online.. online Thestar.com.my. available at http//www.thestar.com.my/story/?file=/2012/10/2/business/12110226 Accessed 25 Nov. 2014.Ahmad, S. and Singh, N. (2014).Najib talks somewhat f urther subsidy cuts. online Free Malaysia Today. Available at http//www.freemalaysiatoday.com/category/nation/2013/10/22/najib-talks-about-further-subsidy-cuts/ Accessed 25 Nov. 2014.Block, W. (2008).Rent Control The Concise Encyclopedia of Economics subroutine library of Economics and Liberty. online Econlib.org. Available at http//www.econlib.org/library/Enc/RentControl.html Accessed 22 Nov. 2014.Hans, (2013).Explaining The Mystery Behind High Car Prices in Malaysia Part 1. online Livelifedrive.com. Available at http//www.livelifedrive.com/malaysia/news/ weigh/3802/explaining-the-mystery-behind-high-car-prices-in-malaysiapart-1 Accessed 23 Nov. 2014.Khoo, C. (2013).GST in Malaysia. 1st ed. ebook Malaysia KPMG tax Services Sdn Bhd, p.2. Available at http//www.kpmg.com/MY/en/services/Tax/gst/Documents/tl-gst-malaysia.pdf Accessed 23 Nov. 2014.Labor.ny.gov, (2013).Minimum Wages New York State Department of Labor. online Available at http//www.labor.ny.gov/workerprotection/laborst andards/workprot/minwage.shtm Accessed 22 Nov. 2014.Lee, I. (2013).What Causes High Car Prices In Malaysia?. online iMoney.my. Available at https//www.imoney.my/articles/high-car-prices-in-malaysia Accessed 24 Nov. 2014.Themalaysianinsider.com, (2013).New ceiling price for chicken from July 26 RM7.70 per kg The Malaysian Insider. online Available at http//www.themalaysianinsider.com/malaysia/article/new-ceiling-price-for-chicken-from-july-26-rm7.70-per-kg Accessed 20 Nov. 2014.Thestar.com.my, (2014).Foreigners can only buy properties costing RM1m and above from March 1 Business News The Star Online. online Available at http//www.thestar.com.my/Business/Business-News/2014/02/28/Foreigners-can-only-buy-properties-costing-RM1m-and-above-from-March-1/?style=biz Accessed 22 Nov. 2014.Thesundaily.my, (2013).Ceiling price for chicken fixed at RM7.70 theSundaily. online Available at http//www.thesundaily.my/news/775160 Accessed 20 Nov. 2014.

How Society Viewed Love and Marriage in Pride and Prejudice by Jane Aus

How Society Viewed Love and Marriage in Pride and Prejudice by Jane AustenJane Austen was born in 1775 and spent most of her life in thecountryside in a village called Steventon, Hampshire. She was thedaughter of a clergyman, Reverend George Austen and her mother wascalled Cassandra Austen. She had a brief education starting at the ageof seven and ending at eleven, when she settled at home. Like women inAustens society, she had little education due to the beliefs at thetime the only education she would have received would in all likelihood havebeen to up her favorable status, through marriage. She wrote Pride andPrejudice to portray societys views of love and marriage to thereader and to shoe that marriages take position for different reasons. Wesee throughout the novel the excessive number of marriages andcourtships that take manoeuvre.The opening sentence Its a truth universally acknowledged, that a integrity man in the possession of a good fortune must be in want of awife intr oduces the theme of love, marriage and funds in an ironicway. The irony is contained in the fact that marriage is meant to beabout love and happiness but clearly revolves around wealth and socialstanding. In the novel we see two established marriages take placeThe bennets and the Gardiners. Throughout the novel four othermarriages take place Lydia and Mr Wickham, Charlotte Lucas and MrCollins, Elizabeth and Darcy and Jane and Mr Bingley.The marriage between Mr Collins and Charlotte Lucas is purely based onfinancial and social security not love or appearance, It was extremelycommon fro women in Austens era to marry and save themselves fromspinsterhood and social security and to gain, the above mentioned,financial... ...however, that Darcy is her ideal match.Intelligent and forthright, he too has a tendency to judge too in hasteand harshly, and his high birth and wealth make him overly proud andoverly conscious of his social status. When he proposes to her, forinstance, he dwells more on how unsuitable a match she is than on hercharms, beauty, or anything else complimentary, not handsome enough.Here Darcy is reflecting societys views of love and marriage becausemany people married for higher(prenominal) social status and financial statusrather than for love and beauty.Pride and prejudice is a love story but does not reflect the romanticside. It gives the reader a sense of all the different kinds ofrelationships, none of them are the same. It shows that the idealcouple is difficult to find, the established marriages in the bookbeing The Bennets and the Gardiners.

Evaluating Societies Culture by Norms, Values, and Laws Essay

Almost every society participates in a unique destination that cannot be accurately judged without acquiring viewpoints from the individuals in it. While reading the article Indias Sacred Cow by Marvin Harris (1978) I was able to solve insight about the Hindoo people and their reasons for worshipping the sacred cows (Harris, 1978). gibe to the textbook Sociology Thirteenth Edition by Richard T. Schaefer, through cultural realism, or the true(prenominal) attempt to understand an individuals culture from his or her perspective, we might obtain information on how to better ourselves and our society (Schaefer, 2012). At first, many factors of Hindu culture seemed a little arbitrary compared to American cultures, but after I gained information regarding Hindu religious beliefs, I was able to understand, and somewhat hazard with, the values, norms, and laws, that make up the culture of Hindu people. According to Schaeffer (2012), values are conceptions of what we consider good, desi rable, proper, or rugged, undesirable and improper in a culture I believe that no value is correct or incorrect because not everyone has the same opinion on whats good or bad (Schaeffer, 2012). In a Hindu culture worshipping cows is considered proper and most likely desirable. This would most likely be labeled as abnormal and undesirable in most American cultures, because people in America usually do not depend on cows for their societys well-being. According to Harris(1978), the Hindi people depend on the cow with their lives, if they did not have the cow, then they would not have means to produce oxen to transport them from infinite to place and to plow the fields so they can have food (Harris,1978). This differs greatly from most American societ... ...even bizarre human cultures may appear, they can be understood at least in part. He (1978) further supports this statement by claiming that Indias sacred cow is in fact quite a rational cultural adaptation, because the cow is so extraordinarily useful (Harris, 1978). Before judging a culture on a seemingly odd belief, think about it in context of the other individual, it may not be odd to them because it may be their norm, it may have value, or it may be the law. If every person can relate with the views of others there will be a more harmonious existence for all societies and their cultures. Works CitedSchaefer, R. T. (2012). Culture. Sociology a design introduction (13th ed., pp. 53-65). New York McGraw-Hill.Harris Marvin.(1978). Indias sacred cow. Retrieved from http//www.sociology101.net/readings/Indias-sacred-cow.pdf