How hot can you be?

Some of them use repetition to make you remember, emotions to touch your feelings, and well-known famous people to show you trust. Some of these advertisements are more powerful than others and this is the case of QuickTime ads. This advertisement is very effective, not only because it incorporates a well known famous person that â€Å"uses† the pill, it also shows a link to a reliable website that gives the prospective buyer health information and they use the repetition psychological fact to grab women attention. This weight loss product's advertisement was created to catch the attention of all women.The advertisement asks women how hot could they be and displays a picture of the sex icon Kim Sardinian. By doing this, the correlation between using the QuickTime product and looking like Kim Sardinian is created. What woman does not want to look beautiful? The advertisement indicates that using the product shown will allow the person being targeted to look better than ever. Th e ad commits a logical fallacy by making the false correlation between taking he product and solving all of the users physical aesthetic problems. What if someone has an enormous nose? Will â€Å"CT† help?The product fails to specifically target an overweight audience but instead targets all women, making the ad less effective. How can you trust a product that makes a promise it cannot keep? On top of the tactics mentioned before, the ad shows a link to WebMD (which is reliable website). Women who see this on the product's ad would probably see these pills as a safe option. However there is information proving the opposite, an example f this is in an article on the Time Magazine July editions which contains an article that explains to readers that weight loss products are heavy on claims, but there is a scarcity of scientific proof.According to them, nowadays there are no products that could be considered â€Å"safe, effective and rigorously tested. They also mention that th e U. S Food and Drug Administration (FDA) â€Å"(Park and Suffering 20) do not evaluate most weight loss supplements for safety. However with all this valuable information that loud be easily found on the web, many women might be tricked into thinking this product is safe due to the advertisement containing a reliable medical website.There is much psychological research that proves that repetition works very well in influencing people, and this ad is not the exception. If a woman sees the advertisement Just one time she might ignore it, but if the ad keeps reoccurring then it will most likely catch the audiences attention. As it says on the website changing's. Org â€Å"Repetition creates a pattern, which consequently and naturally Arabs our attention at first and then creates the comfort of familiarity. † (â€Å"Repetition Principle†).Familiarity subsequently hints liking more than dislike, companies know this and they apply it very well to their advertisements. Ther efore even women, who are not thinking on buying the product, probably would unconsciously do it. In conclusion this advertisement is very effective, not only because it incorporates a well known famous person that â€Å"uses† the pill, it also shows a link to a reliable website that gives the prospective buyer health information and they use psychological petition in various forms of media to grab women's attention.There are many companies like QuickTime that are taking advantage of people that have low self- esteem, by advertising a product that supposedly makes you lose weight and become more aesthetically appealing. This advertisement gives a false claim that it can simply solve a persons more complicated problems by taking a â€Å"miracle† pill. By incorporating a medical site to the ad also gives a sense of safety in this pill and makes the targeted audience have a sense of trust in this product.

Ferrari Swot

Ferrari SWOT Analysis What is SWOT analysis? SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis involves identifying your business’s strengths and weaknesses, and examining the opportunities and threats which may affect you. SWOT analysis can be used to analyse your organisation and its environment. Carrying out a SWOT analysis can help you identify changes that can be made to improve your business. Strengths Strengths are those features of the business which allow you to operate more effectively than your competitors. Ferrari is by far the worlds most famous racing car producer that surprised the motor industry in terms of speed, performance and reliability. Ferrari stands out as the leader of Italian auto manufacturers industry, and till today represents the finest of Italian craft in the mechanics of auto propulsion. Ferrari is claimed to be a purpose-built race car which features exceptional performance. Weaknesses Weaknesses are areas capable of improvement. It helps a Company identify if its lacking skills or new products? Whether it has a higher cost base or lower productivity than your competitors? Or if there are any unpleasant truths about the business that need to be faced. Ferrari has emerged superbly as a very strong Brand with least flaws. The only factor which probably acts to its disadvantage is that, the strategy of catering to the very elite class of millionaires has no doubt added to the brand value of the product but also restricts the sales. Having already notched out a mark for itself, probably the time is right to introduce a more economically viable category, to fulfill the millions of dreams of owning a Ferrari. The other drawback is that since its such a high-end brand, and no two Ferrari’s are known to be alike, it makes it clients want and wait for their dream car. It takes a minimum of 6 months advance booking before the client can eventually be the proud owner of this priced possession. Opportunities Opportunities refers to any interesting trends which one can take advantage of Examples of opportunities include: Changes in technology and markets, eg the Internet Changes in government policy or regulations / legislation Local and global events Potential new uses of products and / or services Use of marketing or promotional techniques to boost the business Social factors, eg population fluctuation, lifestyle changes, etc. With Ferrari having already established a very strong hold over the Asia Pacific region and Shanghai as its recent headquarters, its time for it to extend into a highly progressive and lucrative market- India. With a large number of Indians making it to the Forbes list of the richest, India is bound to be an easy market with millionaires who are capable of affording a Ferrari. Furthermore, ever since Ferrari has been introduced in China, its sales have seen a sudden boost with Shanghai becoming the new headquarters of Asia Pacific. Once Ferrari enters the Indian market it is bound to capture a wider and more lucrative audience. Banking on the brand name that Ferrari has notched for itself, I would really like to see Ferrari also reaching out to the high and upper middle masses instead of just the very high classes. Indian market is very much in line with the Chinese market with a lot more scope for flexibility, hence all the key strategies adopted by the company in China is bound to reveal an even more astounding result. Alike China India is also a very densely populated country with a lot of western influence. The past 5 years census has also seen a remarkable lift in the living standards and lifestyle of people. A majority of the population no longer aspires for just comfort but is ready to go that extra mile to be in the lap of luxury. And what speaks of luxury better than Ferrari. Furthermore, Formula 1 is expected to reach Indiaby 2011 hence, it would serve as major promotional strategy for the Company Threats Threats can be external or internal, and are anything which can adversely affect your business. External threats could be inflation, new legislation, or a new competitor in your market. Internal threats could include a skill or staff shortage within your organisation. Indian market seems to be risk free market for Ferrari with only increased opportunities. The only possible difficulty that Ferrari might counter would be in terms of modifying their designs to cope up with the infrastructure of the country, I terms of roads. Ferrari is known for its low body which might hinder movement in case of speed breakers and puddles during rainy season. Other factor which should be taken into consideration would be the government policies and legislation regarding the high import duties. This regulation on the part of the government will inflate the service cost and prices of spare parts. Personal swot analysis : Strength : Passion is the key virtue . Looks at things in a different light . Experimentative in nature . Believes in hard work. Quick at learning new things Makes friends easily Loves to interact with different people Weakness :

Economics Commentary: Macroeconomics Essay

Areas of Syllabus your commentary relates to: Section 4: Macroeconomics Having experienced contraction from Q4 08 to Q2 09, the Canadian economy grew 5% in the fourth quarter of 2009, beating predicted forecasts. This growth was precipitated by consumer and government spending, as well as a growing housing market. There was also growth recorded in exports, with sectors such as the automotive, energy and industrial factoring into this. However, economists warn that for this growth to continue, issues such as unemployment and spotty aggregate demand must be addressed. Fiscal measures, meaning decisions made by the central governing body concerning taxation and government spending, have already been taken by the Canadian government, in the form of the fiscal stimulus package. This package has in it $12B in infrastructure spending, $7.8B meant to stimulate construction firms, $8.3 B for skills training and retraining, and several tax credits ranging from the home improvement ($1350/family) to lowered EI and income tax rates. Fiscal policy generally concerns itself with creating conditions of full employment, price stability and real GDP growth. Full employment, or an economic state where all eligible people who want to work can find employment at the prevailing wage rate, is important in achieving a state of maximum productivity in the economy. The current unemployment rate is 8.2%, above the generally accepted natural rate of unemployment. It has however fallen significantly, with a gain of 159,000 new jobs since June 2009. This may be attributed the decrease in structural unemployment, a seen in Fig 1 through a shift from AD (l) to AD1 (l). There mismatch in skills offered by Canadian workers and those demanded by firms has decreased on the diagram, perhaps through training programs. On the other hand, an increase in aggregate demand, caused by an increase in the disposable income of families may have also caused the increase in demand for labour as firms expanded or rehired laid off personnel. Price stability is also important for long term economic growth, because rampant inflation, meaning a steady and prolonged increase in the price level, is known to have several adverse effects. These include the extra costs caused by unsteady resource costs, and money losing its role as a medium of value. As the government injects more stimuli into the economy, the risk of demand pull inflation grows. Thus aggregate demand would rise; because of growth in the money supply, the price level would increase, as described by the short run equation of exchange, M=P. This increase in the money supply is provided by the Bank of Canada, and included as the Extraordinary Financing Framework in the government’s action plan. To avoid the aforementioned inflation, the Bank of Canada has several tools at its disposal. Raising the amount of reserve requirement is an interesting contractionary choice, so is raising the discount rate charged to major banks. These two together act to reduce the greatest inflationary obstacle, that is public opinion. Thus, as shown in Fig2, an increase in the interest rate results in a decrease in consumer demand for money. This decrease in demand would be useful in controlling inflation once recovery had occurred. However, in the present, the Bank of Canada is likely to concern itself with slowly increasing the money supply, and keeping a stable overnight rate. It is unknown whether the stimulus package is the cause of the rebound in the Canadian economy, this may have been caused by market forces. Additionally, the retraining programs are unlikely to have already decreased structural unemployment, as one of their major faults is the length of time needed to complete such a course. These so called time lags are problematic because once the retrained populace makes their way back into the labour market, 3-4 years may have passed, almost a full cycle of certain economies. As stated in the article, the Canadian recovery itself does not stand on stable ground, especially so given that a significant part of the EU is heavily in debt and America no yet out of its own recession, important, as 80% of Canadian imports are destined there. Whether or not the measures taken by the government with respect to stimulating the Canadian economy in the long run shall be successful remains to be seen. However, the average middle class citizen most likely has experienced the benefits of measures ranging from tax credits and reductions to funding directed to the industry they work in.

Ritz Carlton's Gold Standarts Essay Example | Topics and Well Written Essays - 250 words - 8

Ritz Carlton's Gold Standarts - Essay Example The experience of the Ritz-Carton livens up the quests’ the, instills their well being as well as fulfilling their pent-up wishes and needs (Ritz-Carlton Hotel Company, 2015). The motto of the Ritz Carlton states that â€Å"we are ladies and gentlemen serving ladies and gentlemen† this summarizes the Ritz Carlton motivation. It demonstrates the preventative service that the staff offers. Steps of service- the hotel staff use three service steps which ensure smooth interaction with quests making them feel happy and cared for and important. These include a warm as well a sincere greeting using the name of the quest, anticipation and fulfilling of the needs of the quests, and a tender farewell. The service values of Ritz Carlton Hotel Company describe the behaviors of everyone in the Hotel Company. They comprise of the following: building a strong relations as well as creating the company guests for life, responding to guests requirements anticipated as well as expressed, empowered to come up with unique, memorable as well as personal knowledge for quests, understanding of one’s’ role in the achievement of the main factors embracing footprints of the community as well as creating the hotel company Mystique, among other values (Ritz-Carlton Hotel Company, 2015). The 6th diamond includes the mystique, emotional engagement as well as functional. The employees promise which is the last component states that ladies and gentlemen of the hotel company are the most essential resource in the hotel’s commitment to its guests. Through the application of respect, honesty, commitment, and trust principles, the hotel company nature as talent for the company’s and all individuals’ benefit (Ritz-Carlton Hotel Company, 2015).

The Taliban Research Paper Example | Topics and Well Written Essays - 1000 words

The Taliban - Research Paper Example forces from Afghanistan. (McNamara, Melissa â€Å"The Taliban in Afghanistan) It is important to note that there are two factions of the Taliban existing within countries of Afghanistan and Pakistan. With the Pakistan faction going rogue and, although identifying itself with the Taliban, it actually has a totally different mission and goal than its Afghan counterpart. But in order to understand why the differing goals exist, one must first understand the history of the group. The Taliban can be considered to be religious fanatics who are trying to advance their religious goals and beliefs across the Middle Eastern world. The leader of the Taliban was Mullah Mohammed Omar. A reclusive leader who heads the terrorist group together with 8-10 other colleagues, all of whom are survivors of the Russian war and occupation of Afghanistan in the 1970's. Their governing rules are overseen by the Ministry of Virtue and Vice, often considered to be a religious police force. (McNamara, Melissa à ¢â‚¬Å"The Taliban in Afghanistan†). The group originally emerged as one of the mujaheddin or holy warriors in the region. (Hayes, Laura, Brunner, Borgina, and Rowen Beth â€Å"Who Are The Taliban?†) This group has every intention of establishing a radical Sunni Islamic regime in Afghanistan. The Taliban as a group should not be confused with the Taliban Militia that was established in 1994. (McNamara, Melissa â€Å"The Taliban in Afghanistan†) In Pakistan however, The Taliban Group there has taken on the name â€Å"Tehrik-i-Taliban Pakistan†, a group with known links and ties to the Al Qeada. Although it shares similar ideologies with the Afghan Taliban group, the group is known as a stand alone group with different goals from the original. According to Raza Rumi, director of policy and programs at the Jinnah Institute, the primary target of the group is the Pakistan military. The goal of the group is the removal of the U.S. troops from the area and they w ould like to see the imposition of the Sharia in Pakistan. (Brumfield, Ben â€Å"Who Are The Pakistani Taliban?†). Since the group is a breakaway faction, it lacks the organized structure of the original and is instead a coordinated militia. Due to the radical religious beliefs of the Taliban, they would rather become known as religious terrorists who use the holy war or Jihad to propagate religious war over their perceived enemies. However, nothing could be further from the truth. There is nothing religious about their terrorist activities. The key to their terrorist campaign is the use of violence. (â€Å"Types of Terrorism†) However, the most common form of terrorism that the Taliban uses can be seen in the way that they need to acquire funding for their terrorist activities. The group has been known to employ the use of roadside bombings in Afghanistan and Pakistan when attacking the U.S. troops stationed there. The group is also not beyond using arson and firebomb ings in order to quash their targets. However, the group, due to the lack of funds through their bank accounts and other channels of receiving financing having been effectively cut off by the international community, has taken to kidnapping and hostage taking for ransom in order to keep their organization afloat and their terror activities

Reflective Journal Assignment Example | Topics and Well Written Essays - 750 words

Reflective Journal - Assignment Example Seeking to be a manager of a manufacturing firm, my strengths in interpersonal relationship and team leadership would enable me foster a collaborative management as this would ensure that employees’ ideas are considered in decision-making. This would be useful in avoiding resistance to change or management’s decisions. However, I would have to work on my conflict resolution and negotiation skills so as to enable me maintain harmony in the organisation and enforce a balance between organisational and individual goals. I would also have to improve on my communication skills to relay information effectively. The effectiveness of this tool in determining the alignment of my competencies to my expected managerial roles made me appreciate the argument by Chaston (2011) and Rosaline (2013) that gap analysis helps in the identification of personal goals. I am now aware of my strengths and the areas where I would need to improve on so as to become an effective manager. Management process could be more complicated than it could appear. This could even be more pronounced in case of an organisation operating in a complex and changing environment. As such, the postulate by Henry Mintzberg on the roles in managing information, people and action as given by Muma, Smith and Somers (2005) and Schermerhorn (2011) would be critical. The interpersonal role of a manager as a leader; informational roles as a monitor and disseminator; and decision roles as a disturbance handler, resource allocator and negotiator would be useful in such a situation. In my view, complex situations cause confusion among employees. Therefore, the role of a manager as a leader would help in guiding employees on the way forward in case of dilemmas. Organisations need to be keen on the changes in the environment so as to make decisions on adaptive strategies that would ensure their

DQ 1SD and KW DQ2 Responses W10 Essay Example | Topics and Well Written Essays - 250 words

DQ 1SD and KW DQ2 Responses W10 - Essay Example I agree with you that the use of leverage is advantageous for the person holding the leverage. Leverage can also be used by individual investors in the stock market to increase their purchasing power through the use of a margin account (Sec, 2009). When companies are able to reduce taxes and depreciation as they use leverage firms gain an advantage that allows them to achieve better operating results. For example two companies have the same pretax income. One firm uses leverage and has interest tax deductions, while the second company does not use leverage. The company that uses leverage will have a higher net income due to lower taxes. As you mentioned in your response leverage is often used by corporations in order to achieve growth. Successful multinational corporations such as McDonald’s and Starbucks would not have been able to achieve their tremendous level of growth and success without the use of leverage. I agree with you that the value of a project is highly dependent on the present value of the cash flows the project is supposed to generate during its

Allocation of Funds in the DOE Essay Example | Topics and Well Written Essays - 1750 words

Allocation of Funds in the DOE - Essay Example This document will show the reasons for the re-allocation of the monies toward viable sources of energy, and will also outline the importance of energy conservation as a tool in adjusting from hydrocarbon fuel sources to the alternative energy source formats. Current Distribution of Funds, in millions, for 2011 Projected Distribution of Funds, in millions, for 2012 $100M Nuclear Energy $100M Nuclear Energy $145M Fossil Fuels $45M Fossil Fuels, until projected phase-out $75M Alternative Energy Sources ($40M for Hydrogen and Fuel Cells) ($90M for Hydrogen and Fuel Cells) ($15M for Solar Energy) ($10M for Wind) ($25M for Wind) ($10M for Biomass) ($0 for Water Power) ($40M for Water Power) $30M Energy Conservation and Weatherization $50M Energy Conservation and Weatherization Our planet is in crisis. We are technologically more advanced than ever, but our advancement comes at a price. We need to face the reality that our energy consumption is far exceeding the fuel resources we are using to sustain our lifestyle. Wood, coal, petroleum - each resource we have employed since we discovered how to turn energy into power has become a part of the global problem which it is now too late to solve: how do we save our planet from ourselves? In reviewing the alternatives for energy sources and the technologies currently exploring those alternatives it is my recommendation, based upon the book The End of Oil by Paul Roberts, that the following areas merit the bulk of the available funds: Energy Conservation and Weatherization, Nuclear Energy, and of the alternative energy sources that have been explored, Hydrogen and Fuel Cells. The abundance of a given resource is a deciding factor in determining which technologies merit funding. The question is which resource will carry us the farthest, making it the most worthy of investment? Let us consider the merits of the various resources, starting with coal, which falls under the category of fossil fuels. Coal was literally the corner stone of the Industrial Revolution at the turn of the last century. (27, Roberts) However, in the twenty-first century, with a century of pollution having adulterated our environment, Roberts points out that we have no choice but to consider cleaner sources of energy. Coal did, however, replace wood as an energy source, and it was able to achieve a technological leap previously impossible with wood: â€Å"Newcomen’s engine took the process one step further, by converting the heat energy from combustion into the physical, or mechanical, energy of work.† (28) Still, as a renewable energy source, it is found lacking. Coal and other fossil fuels are finite resources, making them unworthy of further financial investment. The Department of Energy is hereby charged with managing the re-allocation of funds to renewable sources of energy. The Department of Energy must also utilize the re-allocated funds in the Energy Conservation category to maximum advantage, for the following reason: â€Å"Changing our energy sources has historically been a highly disruptive process.† (15, author) This is to say that whenever people have negotiated the transition from one energy source to another, the change is slow to take effect because the existing technology works best with the resources currently

Statement of Purpose writing about goals and objectives in pursuing a Essay

Statement of Purpose writing about goals and objectives in pursuing a graduate degree - Essay Example I am a highly motivated, enthusiastic and intelligent person. One of my unique qualities is my broad experience in industrial engineering the course which I undertook during my undergraduate studies. I have a great interest in management of technology and I also have a passion for charity work as through it, I am able to help the weak in society. I am sure that these qualities will have an impact in my master's study. My undergraduate degree has grounded me in issues of management. All my above mentioned qualities and characteristics prove that I have much to offer to St Lawrence University. The four years in which I undertook my undergraduate were not sufficient for me as I did not acquire all the knowledge I wish to have. The years were not enough to make me be in a position to perform effectively and efficiently in the field of management technology. I have a great passion for making my foundation stronger in order to increase my capacity to be more effective in managing technology. I am driven by the fact that other countries are rapidly growing in terms of technological development. Our country is being overtaken in this field and hence serious measures need to be taken. One of these measures can be to increase our knowledge capacity in this field. I have confidence that with my undergraduate degre

Assignment Example | Topics and Well Written Essays - 250 words - 262

Assignment Example Social forces highlight the consumer behavior pattern and demand in the market place. Like if the restaurant is opened in a rural area where the social forces restrict people to go to a restaurant then it would not be beneficial for the business. These forces denote the effectiveness and efficiency of a business. As the external environment introduces new technology or innovation it becomes important for a business to incorporate advanced technology in order to stay at par with other players. Apple Inc. can be regarded as most prominent example in this field as it upgrades its technical factors as and when required. Political instability seems to disrupt the entire business environment. The norms and regulations that are set forth by the political authority govern functioning of a business (Daft and Marcic 91). On the other hand tax benefits that are authorized by leaders denote the profit margin for the business. Indianapolis is a region where majority of manufacturing factories had closed down due to such unstable political scenario and increasing rate of homicide. A new business venture that is set forth is basically based on the factor of solving a hidden problem of consumers. In case of a restaurant the major problem can be unavailability of a specific kind of cuisine for which there is high demand in the market place. For instance people had a hidden demand for such a device which would operate as a phone but even perform necessary operations of a laptop and this problem was eradicated with the launch of tablet. Market gaps are generally associated with hidden demand which has not yet explored by any players in a particular industry. Filling in this gap would mean that a business venture is been able to successfully position itself in the market and can achieve competitive

Coffee and Starbucks Essay Example for Free

Coffee and Starbucks Essay Abstract Starbucks opened its first location in Seattles Pike Place Market in 1971. Now Chairman Howard Schultz joined Starbucks in 1982 as Director of Marketing. Schultz visited Italy and noticed the popularity of espresso bars there. He thought this would be a great idea in the Seattle area and convinced Starbucks to open a coffee shop in downtown. Schultz founded his own coffee company and acquired Starbucks name and assets from its founders in 1987. The company had just 17 stores but would soon grow quickly and went public in 1992. Starbucks popularity soared as it opened coffee shops within Barnes and Noble bookstores. It also provided coffee for United Airlines and shops in Starwood hotels. The companys focus on quality and commitment to social causes and the community have made it one of the worlds most admired businesses. Starbucks made the cutting-edge step of having its second Corporate Social Responsibility Annual Report verified by an outside auditor, so readers can be assured the facts and figures it presents are accurate. One of the revealing statistics in the report is that Starbucks purchased 74 percent of its green coffee at outright negotiated prices, independent of depressed commodity prices in 2002, up from just 12 percent in 2001. Starbucks also paid an average of $1. 20 per pound at a time when coffee was trading on the commodity market for $. 40 to $. 50 per pound. The end result: higher income for farmers, which translates to a better quality of life for farmers. Introduction: Starbucks began 36 years ago as a single store in Seattles Pikes Place Market, and today is the worlds leading retailer, roaster and brand of specialty coffee. The company has experienced extraordinary growth: its number of stores has more than doubled in the past ten years, with close to 6,000 coffeehouses in over 27 international markets. More than 19 million customers visit a Starbucks coffeehouse each week. When Starbucks considered its ambitious expansion plans for Europe, the Middle East and Africa, executives knew that the location they chose for their new roasting plant and support centre would be critical to their success. In fact, the decision was so important that the company spent close to three years looking at various sites across Europe and the International market. Main discussion: 1. Starbucks product’s competitive priorities As we know the competitive priorities is operating advantages that a firm’s processes must possess to outperform its competitors. In this part, we are going to define each possible competitive priorities of Starbucks for operation process as cost, quality, time and flexibility †¢Cost: Market indicators show a potential trouble for the entire coffee industry as a whole, namely the rising cost of coffee beans and farmer’s tendency to switch to other profitable crops. First, rising cost means lower profit margins. Second, the fact that farmers are switching to more lucrative crops such as vegetables, fruits, and even illegal crops foreshadows the scarce supply of coffee beans. Hopefully Starbucks’ competitive prices for its coffee subcontractors are lucrative enough to retain and deter its suppliers away from abandoning the coffee production. Economic trends should not influence. Starbucks pricing strategy greatly, because gourmet coffee, or any other coffee, is measured on quality and availability, and not so much on price. Furthermore, in times of economic downturn, the business is actually performing better, since people are fixated on the idea that if we cannot afford something as grandeur as a new car, then at least we would treat ourselves to a nice cup of coffee. Hence, economic trends should not greatly influence the performance of coffee sales. †¢Quality -high performance design for quality control, Starbucks has a specialized process for roasting the perfect coffee bean. It is implemented with the roaster determining by sight, smell, hearing, and computer, if the beans are perfectly done. Additionally, the colour of the beans is tested in an Agtron blood-cell analyzer. If the sample is deemed imperfect in any of these processes, the whole batch is discarded. Starbucks’ departmental systems are organized into functional and production divisions such as Supply Chain Operations, Human Resources, Accounting, etc Starbucks employs approximately 15,000 individuals to operate its retail stores and regional offices, and 1,600 individuals to work on administrative, sales, real estate, direct response, roasting, and warehousing operations. -consistent quality: measurement of quality products and services that keep customer’s retention. Its competitive strategy is to rapidly expand to a market and dominate it completely before moving on. In the process, it hopes that these rapid expansions would create a higher barrier to entry, discourage competitors from expanding, and eventually acquires weak competitors who wants to exit. †¢Time: three competitive priorities deal with time fast delivery time, on-time delivery and development speed. -fast delivery time: starbucks saves costumers’ time by offering self-service to the costumers. -On-time, delivery by processing orders in efficient time, which guarantees no costumer delay on service. -development speed starbucks’ consumers have tried its product, but not through advertisement, but through promotions such as gifts introducing new products to the market. †¢Flexibility: the customization of starbucks has the ability to satisfy the unique needs of costumers by changing products and services designs. Starbucks volume flexibility is accelerating the rate of production quickly to handle large fluctuation in demand because of the unique service to the costumers. 2. Starbucks critical analysis, services and manufacturing strategies In order to identify the critical analysis of the company services and manufacturing strategies we will start analysing the corporate strategy as it follows: †¢Goals The Companys goal is to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal, the Company plans to continue to rapidly expand its retail operations, grow its specialty sales and other operations, and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. , as well as: -Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success. †¢Core competencies: starbucks considers the unique resources and strengths when formulating strategy as workforce, facilities, market and financial, and system and technology as they follow: †¢ Culture and employees who support values and missions of the organization, who have a stake in the performance of the company. ? Market domination in the U. S, allowing economies of scale, creating high barrier to entry, and impeding competitors’ growth incentive. ? Sufficient return on equity, which means proper management of company’s resources †¢Low supplier’s and customer’s power, and low influence from economic trends †¢Quality product and customer service, established brand name Environmental responses ?Economics Trends – Market indicators shows a potential trouble for the entire coffee industry as a whole, namely the rising cost of coffee beans and farmer’s tendency to switch to other profitable crops. First, rising.

Chinese culture Essay Example for Free

Chinese culture Essay 1. Executive Summary Business today is becoming more universal and it is common to travel around the world for business dealings. In order to clinch a business deal with parties of other countries, it is essential to do some research about the country first. This will provide critical information about their business tradition, etiquette issues and other factors that will allow easier acceptance of Singaporean business persons. China being the largest populated country of 1. 3 billion, with an area of 9,600,000 square kilometers, has a long history, unique culture and a wide variety of distinctive customs and traditions. She has been attracting foreigners to invest as there are plentiful resources and labour market, which are crucial in business dealings. Besides the factors that are mentioned above, other factors play essential roles as well. Guanxi and Mianzi are the foremost factors that Chinese businessmen take into account. Other factors include preparation for Chinese business meetings, knowledge of the Chinese Lijie, such as non-verbal communication and social relationships. Also, the Chinese banquet consisting table etiquette together with drinking and toasting. There will also be gift-giving, such as what should be considered to give and what should be avoided. Last but not least, different ways to negotiate with the Chinese for the best solution should be taken into consideration. In conclusion, having the knowledge of the Chinese etiquette will better help one to succeed in clinching more business dealings. At the same time, it also helps one to understand the culture and customs of Chinese. Therefore, this will not only do one good for business purposes, but also encourages common understanding amongst countries. 2. Introduction The Peoples Republic of China, has a largest population of 1. 3 billion and a GDP of US$2393 billion. Thus, it has been eyed by many business executives due to its big market share and a large pool of labour which provides many business opportunities. In order to carry out business transactions efficiently with the Chinese, it is important for us to know what the prohibitions, customs and taboos are in China. By understanding these, we will be more prepared to conduct business with the Chinese. 2. 1 Meeting the Chinese. To begin with, the Chinese are very particular about first impressions. They prefer to be introduced formally to people as they are reluctant to strike up conversations with people they are unfamiliar with. A proper handshake will be most appropriate upon introduction. If one is being introduced to a group, remember to shake everyone’s hands. Also, stand up throughout, when being introduced or when presenting self. Begin introductions with his/her name, followed by the company’s name and specify the country that he/she is from. 2. 2 Business Cards. It is polite to use two hands to hold both corners when presenting business card and to position it so that it is legible to the recipient. Try to have one side of the card being translated and print the Chinese letters using gold ink as this is an auspicious colour. It will be respectful to spend a few seconds reading the card upon receiving it and helps in remembering one’s name. It is demeaning to put it directly into your pocket without glancing. If it is a sit-down meeting, place the card on the table so that one can look at it. 2. 3Conversations. Most Chinese like to engage in conversations concerning topics which they have knowledge on, such as weather, geography, Chinese cuisine, Chinese scenery and landmarks. Topics related to politics should be avoided. Dismiss personal questions with a little humour if uncomfortable. The Chinese would often compliment the country of origin. However, accepting praise outright is not considered as good etiquette for them. Instead, one is expected to deflect compliments and pretend it is unworthy of receiving them. 2. 4 Greetings Surnames come first when addressing a Chinese. In business situations, one will seldom concern themselves with a Chinese person’s given name. It is advisable to get straight how one should address someone at the first meeting. For business purposes, it is traditionally acceptable to call a Chinese by the surname, together with a title such as Managing Director Toh. 2. 5On the telephone Although Chinese may make arrangements through the phone, most Chinese prefers face-to-face meetings. On the telephone, the standard greeting is the word â€Å"wei†, which means â€Å"hello† or â€Å"are you still there† in Mandarin. Chinese often do not furnish any identifying information upon answering the phone; hence it is good to verify that one has reached the organization he/she intended to dial. 3. GuanXi – Relationships Personal relationships play a vital part in the business world of Chinese. Chinese businessmen do not rush into discussions and negotiations, as they want to get familiar with their business partners before doing business. This is known as Guanxi, which means â€Å"relationships†. It is the network of relationships among various parties that cooperate together and support one another. Before doing business, Chinese will extend hospitality to demonstrate their respect for others and appreciation of the finer things in life so as to soften their visitors. There will be small talk during the first full day, where Chinese learns about his visitor and goals. The evening during the welcome banquet, they would learn more as foreign visitors will open up during casual talks. Also, the visitors may visit the residence of their acquaintances from other organizations and bring some gifts as it is important for building and creating Guanxi. Gifts like foreign cigarettes and quality wines are acceptable, which will be discussed more at the later part of the report. Trust is built during such situations and Chinese would then be more comfortable to work with them. Relationships are not only between companies but also personal levels. Establishing a sincere, supportive relationship based on mutual respect is a fundamental aspect of Chinese culture. In the world of business, possessing the right Guanxi is crucial for ensuring the minimization of difficulties and frustrations that are often encountered and it is also important to any successful business strategy in China. 4. Mian Zi Face Face, also known as Mianzi, is a mark of personal pride and forms the basis of an individual’s reputation and social status. Having face means having a high status in the eyes of ones peers, and is a mark of personal dignity. It is a prized commodity, which can be given, lost, taken away or earned. Face to a Chinese, holds more importance and encompasses a greater part of life. In order to establish all important interpersonal relationships, face must always be created and maintained at all times. Losing face may be caused by, for example, public insult, chastisement or contradicting someone in front of another, and also, by ourselves, such as losing temper or losing your own control in public. Furthermore, rescinding an order can also be constructed as losing face. This is why Chinese leaders would rather follow the policies even if there are events that prove them that it is irrelevant. Causing someone to lose face through public humiliation or inappropriate allocation of respect to individuals within the organization can seriously damage business discussions. On the other hand, praising someone in moderation before their colleagues is a form of giving face and can earn respect, loyalty and aid negotiations. Nevertheless, face is so important that it is justification for spending money even if the Chinese is not very rich. Money that may be set aside for emergency use may be used for buying gifts or accessories instead because of face. 5. Lijie- Art of Politeness Being polite is a type of basic courtesy one should possess. In China, personal feelings and hint of criticism should not be dealt with publicly as it might cause public embarrassment and unpleasantness. A glass of tea that is automatically set out in front of arriving guests is how the Chinese allows the guest to feel comfortable and appear gracious. 5. 1 Surface harmony Surface harmony is an essential skill because the world of Chinese etiquette is very insensitive to unpleasant genuine feelings as it concerns matter of â€Å"face†. To the Chinese, things are done more for show than for substance; for example, manners are tools which they use to maintain pleasantness at all times, even when it is not entirely felt. Surface harmony is disturbed when one expresses his/her disagreement. Therefore, it is advised to remain quiet and â€Å"give face† as it might result in sabotage, subversion or revenge as the Chinese are well capable of such actions. 5. 2Intermediaries Intermediaries can be useful in communicating something unpleasant to the Chinese, and they help to ask questions, as preservation of face and surface harmony is considered highly important to Chinese. Intermediaries are highly useful in negotiations as they provide back channels for information that might prove too sensitive or risky. However, anger may be expressed directly for strategic purposes. 5. 3 Social relationships Chinese manage their social relationships by an imaginary circle that surrounds them. Relatives, friends, neighbours, classmates and co-workers are within the circle. These people have relationships with one another and hence, bear some sort of obligation. Chinese tend to go all out for them, be it putting themselves at great inconvenience or even ethically questionable circumstances. The rest of the world, whom a Chinese treats like a stranger, remains outside of the circle to whom with no particular obligation. 5. 4 Non-verbal communication. Chinese have various non-verbal communications. Firstly, Chinese tends to have a shorter social distance compared to many western cultures, for example, a Chinese friend might stand a little close to you for comfort or breathing directly into your face when talking to you. Furthermore, if one steps backwards, his/her Chinese counterpart may advance accordingly. When dealing with a Chinese, particularly the older ones, one should not touch a member of the opposite sex you do not know extremely well as other types of physical contact can be misinterpreted. However, it is said to be perfectly acceptable for Chinese to be physical with members of the same sex. Traditionally, Chinese are seldom demonstrative with the opposite sex in public. Therefore, foreigners should keep in mind that they are well advised to avoid more passionate forms of contact besides holding hands with a companion. During a conversation, one should not slink down in chairs as they are deemed disrespectful. Furthermore, some Chinese will avoid meeting one’s eyes or smile. This is a sign of shyness or keeping feelings to themselves. Thus should not be confused with insincerity, unfriendliness or anger. Silence is a virtue for it represents reflection or a sign of politeness. Gestures such as â€Å"come here† by curling index finger upward, â€Å"okay† sign with thumb and forefinger forming a circle, and shrugging of shoulders showing â€Å"I don’t know† may not be understood by the Chinese. Nodding or shaking of head, thumbs-up and clapping of hands for applauding are universally accepted gestures. 5. 5 Ways to reject a Chinese Rejecting people or saying ‘no’ can result in losing face, therefore the Chinese devised a number of methods of refusing without saying ‘no’. Ways to reject are, saying to grant the wish would be â€Å"inconvenient† as it means there are political problems associated with fulfilling a request, or it is â€Å"under consideration† or â€Å"being discussed†. This generally means that something is unlikely to happen. Another way is to blame someone else for the roadblock by finding a scapegoat. Lastly, a Chinese may tell a lie such as inventing a story to get out of the uncomfortable position in which a person feels placed. 11. References and Acknowledgements 1. De Mente Boye. (2004). Chinese etiquette ethics in business. Boston: McGraw-Hill. 2. Scott D. Seligman. (1999). Chinese Business Etiquette: a guide to protocol, manners, and culture in the People’s Republic of China. United States of America: A Time Warner Company 3. About. com: China Online (n. d. ). Retrieved on June 13, 2007. http://chineseculture. about. com/od/businessculture/Chinese_Business_Culture. htm 4. Communicaid global communication: doing business in China. (n. d. ). Retrieved on June 13, 2007. http://www. communicaid. com/chinese-business-culture. asp 5. Chinese Culture. (n. d. ). Retrieved on June 13, 2007. http://www. chinese-culture. net/html/chinese_business_culture. html 6. Kwintessential- Language and culture specialists (n. d. ). Retrieved on June 13, 2007. http://www. kwintessential. co. uk/cultural-services/articles/china-business-culture. html 7. China’s GDP grows 10. 7% in 2006. (January 25, 2007). ChinaDaily. com. cn. Retrieved on June 25, 2007. from http://www. chinadaily. com. cn/china/2007-01/25/content_792311_2. htm 8. Economy – Economic Structure Trends. (2006). Retrieved on June 20, 2007. http://china-europe-usa. com/level_4_data/eco/042_3. htm 9. China – Business etiquette, manners and cross cultural communication. (n. d. ). Retrieved on June 15, 2007. http://www. cyborlink. com/besite/china. htm 10. China – Business Travel Etiquette. (n. d. ). Retrieved on June 15, 2007. http://www. crazycolour. com/os/china_02. shtml 11. Business Card Etiquette by Neil Payne. (n. d. ). Retrieved on June 15, 2007. http://www. sideroad. com/Business_Etiquette/business-card-etiquette. html.

The possible solution

The possible solution CHAPTER VII One reason for dissatisfaction with the IWT is that, as presently constructed, it offers very thin support to the integrated or joint development of the Indus River Basin. After all the treatys success, in the face of huge distrust and animosity between the two signatory, had largely to do with its abandonment of customary international norms governing internationally shared rivers. In particular, it discarded the norms protecting the downstream countrys traditional uses of rivers wtare, in place of which it offered geo-physical partition of the river system itself. This formula was conceivable only in the unique geographic and political circumstances of the Indus Basin[1] As has been brought out in the previous chapter the complete abrogation of the IWT is not possible therefore there is a need to generate various options that can be exercised to resolve the conflict of interest between Pakistan and Kashmir over water resources. Pakistans answer to the problem lies in complete contr ol over the state of Jammu Kashmir which would place the watershed areas in its control and solve its problem of being a lower riparian state. This is not a practical solution. Indias solution to the problems envisages gradual erosion of the provision of the treaty by constructions of dams in Jammu and Kashmir which would enable it to exploit the resources of the three Northern rivers while remain on the fringes of the treaty. These different approaches by both the countries may not provide us with a solution which would be acceptable to the masses of India, Pakistan and the state of Jammu and Kashmir. Let us examine some of the solutions that have been offered by various personalities as also see the feasibility of implementing them. Chenab Formula [2] Pakistan has directly or indirectly emphasised the Chenab Formula as the most preferred option. This division would be based on the flow of the Chenab, but it would to some extent coincide with religious demography.Why is then Pakistan interested in the Chenab formula that includes parts of Jammu? With a small twist to this proposal, consider the hypothetical situation, as suggested by many experts, of only Kashmir being a part of Pakistan, and entire Jammu province and Ladakh under India. One evident outcome of such an arrangement would be the dissolving of the Indus Waters Treaty, as the political status of Kashmir would change. The distribution of water resources would be altered. Pakistan would then have complete control over only the Indus, Jhelum, and some of their tributaries. The Chenab, Ravi, Beas and Sutlej rivers would fall under Indias jurisdiction. This arrangement would be detrimental to Pakistan, as it would lose a major water source the Chenab. The incumbent major water resources for Pakistan Indus and Jhelum have already been exploited to the maximum in Pakistani Punjab itself where over half their water flows is diverted for irrigation. The Chenab also is a major source of water to Punjab. Moreover, the Chenab-Jhelum combine is the only tributary of the Indus that enhances the latters flow downstream Punjab. Losing Chenab to India would mean drastic reduction in water supplies to Sindh, which is already on the brink of a water crisis. It is imperative to note here that the location where the eastern tributaries merge to join the Indus River is at a point just prior to entering Sindh. Moreover, Sindh receives water only from the Indus River. Losing Chenab would also warrant a major rearrangement of the irrigation network in Punjab. This clearly explains Pakistans insistence on making Chenab the basis of the international bo rder and including parts of Jammu and not merely the Kashmir valley, under its jurisdiction. Moreover, it provides strategic depth for the Mangla Dam. Thus, the Chenab Formula would be the preferred solution for Pakistan but will have grave consequences for India. Apart from losing out on the state of Jammu and Kashmir which will lead many other complications, this formula will also see India losing out on its water resources emanating from Jammu and Kashmir. Whatever flexibility that India has due its limited rights over three Northern Rivers will be forsaken for no apparent advantage. Therefore, if hostility reach a degree where Pakistan formally proposes the Chenab Formula, and not merely as a suggestion in track-two diplomacy, Indias response should be in the negative and belligerent. Valley Formula[3] Since Chenab Formula and the resultant division of Jammu portends war, consider an alternate solution, put forward by some experts, of handing over the Valley of Kashmir to Pakistan. Pakistans ISI acts on the belief that it can conquer the Valley of Kashmir by low intensity insurgency. If we were to consider a future scenario in which Pakistan with the aid of terrorist groups have managed to capture to the Valley of Kashmir which has always been its intention than the consequences of such an action for Pakistan would indeed be grave. Apart from other military and economic action which India would be bound to carry out the natural lay of the Indus water system will place Pakistan in great discomfort. Indias response would be to block the flow of the Chenab River into Pakistan thereby depriving Pakistan of major tributary for the Indus. Technically it is possible to divert the water of the Chenab River and join it with the Ravi, thus retaining Chenab for Indias sole use. Under such circumstances, Pakistan would head for disaster, foremost because the water flows in the Indus River would drastically reduce, as the Jhelum would be the only main tributary. The Indus River could dry up even before reaching the Arabian Sea. This would have serious repercussions on Pakistans economy. The extreme consequence of the scenario of losing Chenab to India, and the Valley of Kashmir becoming the base for redrawing the map, would be the entire reworking of the canal and irrigation system in Pakistan. It is therefore very clear that even capturing the Kashmir valley will not solve Pakistans problem. In fact such an action will only increase Pakistan vulnerability due to water scarcity. The preceding paragraphs have also brought out the immense importance of the corridor through which Chenab flows into Pakistan and same can also be examined in light of repeated Pakistanis attempts to capture this area in the past. The other point that stands out is that India is at an advantage vis -a-vis Pakistan due the geographical location of the Indus water Rivers. How does India take advantage of this? One area of immediate concern for India will be to meet its water requirement for the future. The water potential of the Beas, Satluj and Ravi has already been exploited by India. Therefore this means that the only option left is the exploitation of the Northern Rivers. What are the repercussions of such an action? As long as India uses these Northern Rivers within the provision of the IWT there would be no major objections from Pakistan but a breach of the treaty will surely invite conflagration of hostilities from our neighbours. Moreover if India wants to project itself as a responsible country willing to shoulder greater responsibility in line with its growing economic status than such an action will have detrimental results. An unstable neighbourhood as it is will deny India of any advantage that it a ccrues fro abrogation of the treaty. The above arguments elucidates that India does not have many options. As is the case with Pakistan belligerence over water is not going to solve any problem in fact it will create more. The resource available is meant for use of both the countries and has been done throughout history and therefore there is no reasons why both the countries cannot strive for a integrated development approach of the Indus basin and division of water resources is done not based on geographical partition of rivers but based on actual needs and appropriate sharing. Integrated Development Approach A sustainable solution is possible only if it is based on a win-win formula. Currently, the root of the problem lies in the lack of harmony between the interests of Pakistan and India and Jammu Kashmir. Pakistan needs Jammu Kashmir to build dams to divert water flows to Punjab and Sindh wheras India is frustrated at seeing precious resource flowing unabated into Pakistan.. On the other hand, Jammu Kashmir needs to come out of the Indus Waters Treaty to improve its own irrigation, hydro-electricity and employment prospects. The irony is that deeper the conflict grows between Punjab and Sindh in Pakistan, the greater would be the desperation of Pakistans military to annex Kashmir, resulting in increase in terrorism in Jammu Kashmir and all over India. More the tensions mount, greater are pressures on New Delhi to take a hard line against Pakistan. It is imperative for both India and Pakistan to envisage comprehensive development and planning in the River Basin. A holistic approach to water resources recognizing the interaction and economic linkages between water, land, the users, the environment and infrastructure is necessary to evade the impending water crisis in the subcontinent. The development of such a plan would require vast amount of financial and technical resources. It should be possible to mobilise such resources from around the world, perhaps with the World Bank agencies playing the lead role. The integrated development approach is Utopian. It is only possible with a paradigm shift in mindset and complete end to hostilities, both physical and psychological. The prerequisite of such an approach would be the following[4]:- Complete end to terrorism. Change in mindset in Pakistan about using Kashmiri youth as a tool to ensure Punjabs prosperity and consolidate control over an increasingly alienated Sindh. Acceptance by both, India and Pakistan, to treat Kashmir for the good of the Kashmiri people, and increase efficiency in domestic water management. Restoration of mutual trust and confidence between both countries. Benefit sharing is widely touted as the solution to water conflicts around the world, although operationalizing the concept is tricky. Benefit sharing is appealing because it shifts away from a volume driven approach to a more ecological approach that specifies and shares the benefit derived from the water source. For countries to participate in a cooperative framework, benefit sharing must offer rewards greater than those of unilateral action[5] . Many would argue that given the level of animosity between the two countries such an approach is impractical. One must wonder if it is, in fact, a viable alternative. Should it not prove to be an acceptable alternative than the future seems bleak for India Pakistan relations? A careful approach to the problem will divulge that this approach is the only practical way of solving future water problems. For an equitable and sustainable management of shared water resources, flexible, holistic approach of integrated water resource management is required, which can cater to hydrological variations in time and space and changes in socio-economic needs along with the societal values[6] . Given the commonality of water resources, the commonality of their utilization, and the commonality of the emergent issues, there is clearly a strong case for meaningful interaction between the scientific institutions and water management agencies across the region[7].This would include information sharing, collaborative studies, capacity building, and technology exchange. Rather than expending huge amount of money in building up offensive potential integration of interest will go a long way in building peace and harmony in the region. There is a need to establish a suitable regulatory framework that aims at integrated water management rather that just geographical division of water resources. With an ap propriate regulatory structure, cross border transactions in volving water services could be a significant source of employment, economic growth and livelihood security[8]. Spotlight on Indus River Diplomacy,Robert G Wirsing and Christopher Jasparro, APCSS Waslekar, The Final Settlement, pp. 47-53, 73-78. ibid, pp. 47-53, 73-78. Ibid , pp 53. Climate Change and Water: Examining the Interlinkages, Jayashree Vivekanandan and Sreeja Nair, Troubled Waters by David Michel and Amit Pandya. Water Resources of India, Rakesh Kumar, RD Singh and KD Singh, Current Science, Vol 89, No 5 , Sep 2005 ,pp804. South Asian Perspective on Climate Change and water policy, Ashok Jaitly, Troubled Waters by David Michel and Amit Pandya. The Management of Inter State Rivers as Demand Grows and Supplies Tighten Ben Crow and Nirvikar Singh, MPRA accessed on line at mpra.ub.uni-muenchen.de

S.T.C. Inc. Telecommunications :: essays research papers

S.T.C. Inc. Telecommunications Improvement and Cost Cutting Effort Outline  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Introduction to IPT ( IP Telephony)  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Trends in IP Telephony  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cost Savings Model  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cost Saving Description  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cost Savings Chart  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Cost saving Comparison  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Annual Estimated Savings  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  IPT Structure and Vendor  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Infrastructure  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  IP Phones  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Call Manager  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Voice Applications  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Graphic depiction  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Migration and coexistence  ·Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Conclusion S.T.C. Inc. Telecommunications Improvement and Cost Cutting Effort Introduction This is the initial feasibility study for the upgrade of the S.T.C. Inc. (Small Technical Company Incorporated) network in conjunction with the office move. The purpose of the study is to evaluate the upgrade to be done on the telecommunications system recommending the most cost effective solutions on the market today. After this report a project will be started to implement the recommended solution. The deliverable for this paper will be an implement able cost effective telecommunication solution. S.T.C. Inc. will acquire the hardware necessary to support and run the new system and programming changes will be performed by outside vendors. Internet Telephony Service Providers (ITSP) may use a single infrastructure for providing both, Internet access and Internet telephony. Only data-oriented switches could be deployed for switching data as well as packetized voice. Multiplexing data and voice could also result in better bandwidth utilization than in today's over-engineered voice-or-n othing links. (www.iptel.org), 2004. The business benefits of this type of infrastructure are increased productivity, grater business flexibility and reduced operational costs. (www.cisco.com),2004 Trends in IP Telephony IP telephony is the technology for transmitting voice communications over a network using IP open standards and it uses a single network for the transmission of data, voice and video. There are currently many devices which use similar technologies to accomplish this tasks. Companies in today’s economy are looking for ways to reduce the cost of doing business and IP telephony provide this opportunity. IP telephony will continue to see tremendous activity and make incredible gains in the enterprise space. Until the service providers work their way through all that excess inventory, and are once again ready to research new technology, you can rest assured that next-generation telephony will be busy gaining traction in the enterprise market.(www.tcnet.com,2004) Cost Savings Model Analog and digital based phone systems that use a different set of communication protocols but similar cables to connect to a POP (Point Of Presence) are a very familiar site. These are present not only in home setting, but also in large industrial and office application. These applications in a very large scale are very expensive not only to maintain but also for the reoccurring cost associated with the monthly usage and fees charged to the customer by the service provider.

Violence in Christianity Essay -- Violence Christianity Religion War E

Violence in Christianity Violence, it has been a main tool in the Christian arsenal since the middle ages. From the Crusades to the Inquisitions of Spain, violence is ever prevalent. Even in this day and age, intolerance and violence continue to be preached. But is this violence an instrument of God or man? Is violence an inherent part of this religion? Some would say that it is indeed built in to the very fabric of its being. The Old Testament is full of the smiting of infidels and those who defy God. The Book of Revelations tells of the violent and fiery demise of this entire planet. There are instances of mass genocide, the killing of innocent children, holy wars, you name a violent act and God has called for it. The story of Noah recounts how God killed off everyone in the world save one family. This violence, some speculate, is a result of man?s own doing. Perhaps God?s word was miss-interpreted or those in power sought to legitimize their own violent acts through the involvement of religion. Regar dless of whether it was God or man that made religion violent, it is now deeply a part of it. The very involvement of religion into a dispute can cause the dispute to escalate exponentionally. ?Limited mundane conflict may escalate into violence when the issues at stake are imbued with religious ultimacy. (Klausner 268)? Violence not only plays a strong role in both commandment and practice, it is part of the very core of this belief system. From the zeal and fervor of conversion to the conquest in the name of a deity, violence is ingrained into religion?s very being. ?Religion? engenders an energy that may be experienced as despair or as enthusiasm? Despair can feed an urge to rid the world of pollution and sin (Klausner 268).? Violence in the religious realm may serve several purposes. It can be an end unto itself, a means to accomplish a religious or religious/economic/political goal. It can be done to invoke terror and awe, as in ?witness the power of our God and tremble before his might.? However it is enacted and whatever its reasons, violence is now an inescapable inevitability in religion?s ongoing battle between Good and Evil. In attempting to prove this, I will be drawing on a body of information collected from the Bible; The Encyclopedia of Religion: Articles on: Violence, Crusades, Inquis ition; Ethics: Violence; Dictionary of Middle Age... ... Roman gods certainly seem to be human projections onto the divine; perhaps we as Christians just projected a human father figure onto a beard in the sky as a means of protection and justification for the wickedness of man. After all, if it is in the name of God, how can we be wrong? Bibliography Candelaria, Michael R. Ethics. Ed. John K. Roth. ?Violence.? Salem Press Inc.: 1994. Finucane, R.C. Encyclopedia of Religion. Ed. Mircea Eliade. ?Inquisition, The.? Macmilian Publishing Co.: 1986. Johnson, James Turner. The Westminster Dictionary of Christian Ethics. Ed. James F. Childress & John Macquarrie. ?Just War?. The Westminster Press: 1986 Klausner, Samuel Z. Encyclopedia of Religion. Ed. Mircea Eliade. ?Violence.? Macmilian Publishing Co.: 1986. Little, Donald P. Encyclopedia of Religion. Ed. Mircea Eliade. ?Crusades.? Macmilian Publishing Co.: 1986. New American Standard Bible. Russell, Frederick H. Dictionary of the Middle Ages. Ed. Joseph R. Strayer. ?Crusade, Concept of.? American Council of Learned Societies: 1984. Wakefield, Walter L. Dictionary of the Middle Ages. Ed. Joseph R. Strayer. ?Inquisition.? American Council of Learned Societies: 1984.

Do The Right Thing Essay -- essays research papers

â€Å"DO THE RIGHT THING†   Ã‚  Ã‚  Ã‚  Ã‚  Spike Lee’s movie Do the Right Thing is an excellent portrayal of what life was and is most certainly like in some areas of New York City and across the United States of America.   Ã‚  Ã‚  Ã‚  Ã‚  His movie tells the story of Mookie an African American pizza deliveryman, trying to make a living to support his son and girlfriend. He works for Sal and his two sons Vito and Pino who hold completely opposite attitudes when it comes to race. Then there is Radio Raheem who organizes a boycott at Sal’s pizza parlor because of the lack of racial diversity on their wall of fame.   Ã‚  Ã‚  Ã‚  Ã‚  As the movie begins you become well aware of the fact that the people who live in this area are extremely vocal about their opinions and attitudes towards people who are not of their race or social background. You hear words thrown around which insinuate the projection towards each other. In the movie setting the scorching temperatures were symbolic of the heat and passion rising out the hearts of each person being portrayed in this film. The social-psychological theory is quite astounding in this film. Each race shows frustration and aggression towards the other groups. Such as when Radio Raheem came into Sal’s pizzeria he was rudely asked to turn off his radio. He strikes back at Sal with a similar attitude towards the situation, which in my mind was more then appropriate.   Ã‚  Ã‚  Ã‚  Ã‚  If he is com...

Resource Management Essay

Mattel is one the strongest manufacturers of toys in the world. It is the market leader in developing toys of highest international standards. But staying at the top is not easy for Mattel, as it is positioned in one of the most intensive natured markets in terms of competition. Mattel has over twenty-five thousand employees around the globe (Mattel, 2010). In fact, what makes Mattel No. 1 in the toy industry is its well trained and high skilled workforce. This paper will discuss the strategies implemented to enhance the productivity and skills of Mattel workforce. Question 1 The most important challenge for Mattel is to recognize and provide for the need of coordinated development. Development is an essential part of any organization. Mattel’s development programs were introduced by the CEO of the company. The first step was to develop broad based strategy. These development programs resulted in skilled and productive workforce. Secondly Mattel wished to integrate corporate culture, for which development facilitators met groups of 10 or 12 employees globally and supervised them how to implement the new culture. Mattel also introduced digital training centers, by which employees have access to more than 200 e-development courses. These measures have helped Mattel to convert its workforce as the most important assets of the company. As a result of all these actions, Mattel’s selection and recruitment strategies would likely improve and become more intense. The succession plan aims to retain HR talent, but as a result Mattel’s selection criterion would be more challenging. Apart from this, Mattel would wish to seek employees who are sociable and have good communication skills, as coordinated development efforts require employees from different departments to interact more. Further, Mattel might also judge the GK (General Knowledge), IQ (Intelligence Quotient) and EQ (Emotional Quotient) levels of new recruits as a part of enhanced selection strategy. (Mathis & Jackson, 2008) Question 2 There is no probability of the instance where the developmental efforts of Mattel would appeal to some employees more than others. The rationale behind this is that the coordinated development efforts were aimed to work for all employees of the Mattel industry. Most employees of Mattel are related to manufacturing process, even if they work in different departments. Since majority employees work towards similar goal (manufacture highest quality toy), their mental and developmental processes would almost be the same. Furthermore, the developmental efforts and programs aim to create skilled and productive workforce does not involve technical training in manufacturing a toy, hence these processes are developed such as to appeal all Mattel employees equally. Lastly, Mattel has recently implemented an integrated corporate culture. This culture acts as a niche for the Mattel employees where they interact with other teams and seek to pursue coordinated development efforts. Thus Mattel employees can be defined as ‘bees collectively working to produce honey’. In such instances, these development efforts appeal all employees the same. (Bratton & Gold, 2001) Question3 There can be several reasons for the ‘Barbie’ girls group and ‘Hot Wheels’ boys group not interacting with one another and working effectively together in the past. Firstly, Mattel requires its employees to feel the passion and become a part of what they manufacture. Hence, the Barbie girls group had all the instructions and manufacturing processes that coincided with Barbie’s feminine nature. While the Hot Wheels boys group reflected aggressive, daring and bold nature concepts in their manufacturing processes and instructions. Secondly, ‘Barbie’ and ‘Hot Wheels’ were brands of Mattel, and had different market segmentation and target markets. Hence the strategies designed to sell each brand was different and couldn’t have been merged. Barbie was targeted at teenage girls while Hot Wheels was targeted at teenage boys. Furthermore, the culture within which the employees of Hot Wheels and Barbie worked were completely different. There was nothing common in the cultural environment where both the brands were manufactured. (Montgomery, 1993) There are, however, several methods by which Mattel could reinforce the needs for these groups to work together. Firstly, the identity of both groups should be reinforced as a part of Mattel family rather than separate entities. Hence, the employees of both brands would realize that they are part of a Mattel family, and could interact with one another and share their secrets and strategies about skills, labor empowerment and employee dedication. Secondly, Mattel should more intensely implement a common corporate culture within the company which will create a common ground for Barbie and Hot Wheels manufacturers to work together. Thirdly, the need for coordinated development efforts should be emphasized upon by promoting teamwork and interaction to achieve goals (Mathis & Jackson, 2008). Furthermore, managers can also use succession plans for key positions. Thus they can use terms as ‘Boys need Girls, and vice versa’ to emphasize the reality that both Hot Wheels (boys) and Barbie (girls) are equally important part of the company. Conclusion Mattel has developed several strategies and techniques to empower its employees. The development programs aims to improve skilled labor, and succession plans aim to retain human resource talent. If properly implemented, these strategies, along with the new corporate culture could enhance the performance and efficiency of all employees. These methods would surely help Mattel to retain the No. 1 spot as market leader in toy manufacturing industry. References Bratton, J. and Gold, J. (2001). Human Resource Management: Theory and Practice. 2nd EditionNew York: Routledge Mathis, R. L. and Jackson, J. H. (2008). Human Resource Management. 12th Edition. New York: Cengage Learning Mattel (2010). Mattel Website. Accessed on August 23, 2010 from http://www. mattel. com/ Montgomery, B. P. (1993). Mattel, Inc. International Directory of Company Histories Vol. 7, pp. 304.

Evaluation of Early Supplier Involvement in Product Development Essay

I certify that in the preparation of this thesis, I have observed the provisions of Purdue University Teaching, Research, and Outreach Policy on Research Misconduct (VIII.3.1), October 1, 2008.* Further, I certify that this work is free of plagiarism and all materials appearing in this thesis/dissertation have been properly quoted and attributed. I certify that all copyrighted material incorporated into this thesis/dissertation is in compliance with the United States’ copyright law and that I have received written permission from the copyright owners for my use of their work, which is beyond the scope of the law. I agree to indemnify and save harmless Purdue University from any and all claims that may be asserted or that may arise from any copyright violation. ACKNOWLEDGMENTS Standing outside the Knoy BS440, I was waiting for the dissertation defense result. Few minutes later, Prof. Schmidt, my committee chair, came to me, gave me one big warm hug and said, â€Å"Congratulations!† Suddenly, the memory in the past two years, all the pains and pleasure at Purdue University, came up to me. This is the moment I had waited for so long, but this is also the moment I was unwilling to face because of the coming goodbye. Nevertheless, I knew things I learnt and people I met there will be the valuable asset in my life and will be with me all the time. For those who have supported the creation of the work, I would like to begin by thanking my principle advisor, Prof. Edie K. Schmidt, who has always encouraged me with her sharp insight and great patience. She is not merely a constant guide throughout my research but also a thoughtful friend. Additionally, I would like to show my gratitude to the members of my committee: Prof. Nathan W. Hartman, Prof. Patrick E. Connolly, and Prof. John A. Springer. Without their guidance, suggestions, criticisms and support, I would not make my thesis possible. One notable faculty in the Department of Aviation Technology I also owe a note of thanks. To Prof. Chien-Tsung Lu, I am grateful for your assistance in reviewing the cultural appropriateness of this research, which facilitated the IRB’s approval process. Thanks are also due to all my colleagues from College of Technology and from graduate office and all my friends at Purdue University, who made my two years life colorful. Having their company was the great encouragement when I felt frustrated. For the numerous industrial contacts and friends in Taiwan, thanks are due to them all. In particular, I would like to thank Yi-Hen Chen for his patience and backing me up. Finally, I am deeply indebted to my parents, who fully supported me when I made the decision to pursue higher education and who never lost faith in me. I love you.

Material religion

Connection with the material world is inevitable for a person with all senses in tact.   Upon rising at 5:30am, one can watch the sun rise over the land, eat breakfast, listen the news, shower, and dress, put on jewelry, and maybe even find a few minutes to establish a connection with the Divine.   One great dialogue among contemporary social scientists today, is determining the place religion occupies in the material world: i.e., how does it influence the culture of a people?   Within the body of this paper, we will explore the influence of Buddhism on Chinese Culture, Christianity on American culture, and the role of the physical senses in one’s experience of the divine. For many years, spirituality and the material world were seen as two different spheres†¦one is governed by the tides of commerce while the other is inhabited by mysterious supernatural beings.   In the twentieth century, the rise of the natural sciences and Communism pushed religion into the background, however with the terrorist attacks of 9/11, conservative governments in many Western countries, and movies like The Passion of the Christ, the question of religion’s place in society had once again come to the foreground. Since the enlightenment period, sensory data was used to dispute claims of the existence of a super-natural world beyond this one.   Because one cannot hear, see, smell, or feel God, the angels, ghosts, or draw tears of blood from a statue through any normal means, many, especially in the academic community, dismissed these possibilities.   Is religion not extrasensory by its very nature, requiring the faculties of human intuition and faith?   Some might say that these human sensory deprivation entities have more spiritual advantages because they are not tempted by the physical world.   However, Clark argues that religion cannot exist without the input of the same senses used to disprove it. Calling upon the readers to imagine living without the imagery, musical, and gustatory rituals surrounding many religious ceremonies, she says that such a spirituality would never come into being, â€Å"Close your eyes and imagine a life without mediation.   You are blind, deaf, dumb, and unable to touch or smell anything in your environment.   The majority of us would find it difficult to cope with the loss of even just one of these senses.   Now pause and consider a religious life without mediation.   Even the least overtly sacramental faiths depend on visual, oral, and material culture in everyday life†(Clark, 123-4). Apparently, it is her argument that the religious and the material work together in a symbiotic relationship to form a coherent vision of reality for adherents.   Paintings of saints, prophets, angels, the crafting of temples and cathedrals, and symbols such as the Cross, Star of David, and swastika (in Buddhism) help to forge a material link to the spiritual realm. When Buddhism was first introduced to China, many of its symbols were adopted into the mainstream of Chinese culture.   For example, elaborate circular paintings called mandalas, had become objects of meditation, as did swastikas.   Many important figures such as Kuan Yin were venerated as bodhisattvas, enlightened beings that returned to the world repeatedly to help liberate all other beings from the wheel of death and birth before claiming this liberation for themselves.   These Bodhisattvas were extremely popular in China before the rise of Communism. The robes monks and nuns used to adorn themselves were immediately indicative of the Buddhist order, and the laity would support them, and visit the monastery for instruction in meditation,  Ã‚   â€Å"Images and relics allowed the ordinary person to experience Buddhism in a manner that was at once powerful and intimate, without the immediate intervention of learned intermediaries explaining what should be felt, what should be understood.   Sacred objects, perhaps more than any of the other types of Buddhist objects, rendered the religion tangible and proximate for any who wished it, from the most erudite of monks to the illiterate devotee†(Kieschnick, 24). Today, Asian philosophical systems such as yoga and Zen are marketed to American consumers through fitness classes, clothes (containing Sanskrit script such as the OM symbol), and books promising to help the reader with relationship dilemmas and career moves.   Today, more Westerners are embracing Eastern philosophy because of its dissemination through the popular culture of the Internet and the bookstore scene. Even in Christianity, a religion that traditionally eschews the trappings of materialism to embrace a life of simple service, iconographic images aids the faithful not only in making their religion more practical, but helping to connect strangers that share the same beliefs, â€Å"Religious objects function within complicated networks of beliefs, values, myths, and social structures. Clerical elites articulate the proper use of objects based on their understanding of scripture and religious traditions.   People relate to objects as if they were sacred characters, in spite of warnings against idolatry.   Religious artifacts may also function like tools they help Christians to acknowledge common commitments, delineate differences, express affection, or socialize children†(McDannell, 57). In the modern age, many people buy jewelry, t-shirts, and bumper stickers to share their beliefs with the world.   For example, since the 1980s, Christian Rock had gathered quite a following, and there are many radio stations in the area dedicated to playing Christian music.   To many children and young adults, attending religious institutions is a boring way to spend a Sunday (Friday, or Saturday) afternoon.   With the introduction of religion into pop-culture, people are viewing spirituality as a more socially desirable phenomenon. Works Cited Clark, Lynn. Religion, Media, and the Marketplace. NJ: Rutgers UP, 2007 Kieschnick, John The Impact of Buddhism on Chinese Material Culture. NJ: Princeton UP, 2003 McDannell, Colleen. Material Christianity: Religion and Popular Culture in America. CT: Yale

Term Paper on Controlling Proceess

Govt. Titumir College Term Paper On â€Å"Application of Controlling Process in Banking Sector in Bd. † Prepared By Supervised by Name: Md. Golap Mia Rita Khandoker Roll:181 Year: BBA (2nd year) Lecturer Session: 2011-12 Department of Management NU Roll No: 9613648 Govt.Titumir College Department of Management Dhaka. Govt. Titumir College, Dhaka. Date of Preparation: 26. 01. 2012 Letter of Transmittal To Lecturer Department of Management Govt. Titumir College, Dhaka. Sub: Letter of transmittal. Dear Sir. I would like to draw your kind attention that we are submitting our report about the topic of â€Å"Application of Controlling Process in Banking Sector in Bd. † We have tried our best to prepare this report which will fulfill our requirement.We believe all these new ideas from this â€Å"Term Paper† will help us in our future practical life. We will be highly grateful to your honor if you would kindly accept our â€Å"Term Paper† and obliged thereby. Th anking you Name: Golap Mia Year: BBA (2nd year) Session: 2011-12 NU Roll No: 9613648 Department of Management Govt. Titumir College,Dhaka. Table of contents and counts: ChapterTopic namePage count 1 Introduction4 2Conceptual issues5-6 3Database7 4Findings of study8-24 5Conclusion& recommendations25-27 1. Internal Control Policy 1. 1) Overview Banking has a diversified and complex financial activity which is no longer limited within the geographic boundary of a country. Since its activity involves high risk, the issue of effective internal controls system, corporate governance, transparency, Accountability has become significant issues to ensure smooth performance of the banking industry throughout the world. In many banks internal control is identified With internal audit; the scope of internal control is not limited to audit work.It is an Integral part of the daily activity of a bank, which on its own merit identifies the risks associated with the process and adopts a measure to mi tigate the same. Internal Audit on the other hand is a part of Internal Control system which reinforces the control system through regular review. According to an IMF publication Internal Control refers to the mechanism in place on a permanent basis to control the activities in an organization, both at a central and at a departmental divisional level.A key component of effective internal control is the operation of a solid accounting and information system. In Bangladesh analysis on the performances of the banks has pointed out that an effective internal control system could have contributed significantly in improving the performance of the Commercial banks if the control culture is brought in through policy guidelines and structural changes at these banks and procedural controls. (1. 2) Objective of Internal ControlThe primary objective of internal control system in a bank is to help the bank perform better through the use of its resources. Through internal control system bank iden tifies its weaknesses and takes appropriate measures to overcome the same. The main objectives of internal control are as follows: †¢ Efficiency and effectiveness of activities (performance objectives). †¢ Reliability, completeness and timelines of financial and management information (information objectives) †¢ Compliance with applicable laws and regulations (compliance objectives) .Accountability to the Board. (2) STANDARDS OF INTERNAL CONTROL Internal control policies set forth some standards that departments must establish and incorporate in an internal control structure: (I)Cover all activities: All financial institutions should develop internal controls which have coverage over all their functions, in general, and the key risk areas (KRA) in particular. Key Risk Areas include those core activities, the break down of which may render a financial institutions unable to meet its obligations; to its customers, regulators and the sponsors.Further, the risk originatin g from such activities is of the type that it may cause in systemic failure of other financial institutions. Examples of key risk areas are Liquidity Risk, Interest Rate Risk, Foreign Exchange Risk, Credit Risk, Operational Risk, etc. (II) Regular Feature: Control activities should be an integral part of the daily activities of a financial institutions / DFI in such a manner that it becomes ingrained in their ongoing processes rather than a year-end â€Å"fire drill† to satisfy documentation requests from auditors and supervisors. III) Separation of Duties: Duties should be divided so that no one person has complete control over a key function or activity. (IV) Authorization and Approval: All transactions should be authorized before recording and execution. (V) Custodial and Security Arrangements: Responsibility for custody of assets needs to be separated from the related record keeping. (VI) Review and Reconciliation: Records should be examined and reconciled to regularly de termine that transactions are properly processed, approved and booked. VII) Physical Controls: Equipment, inventories, cash and other assets should be secured physically, counted periodically and compared with amounts shown on control records. (VIII) Training and Supervision: Qualified, well-trained and supervised employees always help ensure that control processes function properly. (IX) Documentation: Documented policies and procedures promote employee understanding of duties and help ensure continuity during employee absences or turnover. Therefore, policies and procedures (in the form of operations manuals and desk instructions) should exist in all financial institutions / DFI. X) Communication of importance of Internal Controls: Setting standards of professional integrity and work ethics and ensuring that all levels of personnel in their organization know the importance of internal controls and understand their role in the internal controls process and be fully engaged in the p rocess. (XI) Cost/Benefit: It is for the financial institutions to assess the costs associated with control processes commensurate with the expected benefits. The controlling process data are collected in a standardized way.To start, the controlling process team, with academic advisers, designs a questionnaire. The questionnaire uses a simple control case to ensure comparability across economies and over time—with assumptions about the legal form of the control, its size, its location and the nature of its operations. Questionnaires are administered through more than 28 local experts, including lawyers, banker, business consultants, accountants, freight forwarders, government officials and other professionals routinely administering or advising on legal and regulatory requirements.These experts have several rounds of interaction with the controlling process team, involving conference calls, written correspondence and visits by the team. For Controlling process 2012 team membe rs visited 4 economies to verify data and recruit respondents. The data from questionnaires are subjected to numerous rounds of verification, leading to revisions or expansions of the information collected. It is not a statistical survey, and the texts of the relevant laws and regulations are collected and answers checked for accuracy. The methodology is inexpensive and easily replicable, so data can be collected in a large sample of economies.Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. Finally, the data not only highlight the extent of specific regulatory obstacles to business but also identify their source and point to what might be reformed. Limits to what is measured The Controlling process methodology has 5 limitations that should be considered when interpreting the data. First, the collected data refer to businesses in the economy’s largest business city and may not be representative of regulation in other parts of the economy. To address this limitation, sub nationalControlling process indicators were created (see the section on sub national controlling process indicators). Second, the data often focus on a specific business form—generally a commercial bank (or its legal equivalent) of a specified size—and may not be representative of the regulation on other businesses, for example, Islami Bank Third, transactions described in a standardized case scenario refer to a specific set of issues and may not represent the full set of issues a banking encounters. Fourth, the measures of time involve an element of judgment by the expert respondents.When sources indicate different estimates, the time indicators reported in Controlling process represent the median values of several responses given under the assumptions of the standardized case. Finally, the methodology assumes that a business has full information on what is required and does not waste time when completing procedures. In practice, completing a procedure may take longer if the business lacks information or is unable to follow up promptly. ELEMENTS OF A SOUND SYSTEM OF INTERNAL CONTROLS AND THE PRINCIPLES FOR ASSESSING THE SYSTEM (A)Elements of Internal ControlsAn effective internal control system consists of following interrelated components: 4. 1. Management oversight & Control environment; 4. 2. Risk assessment & management ; 4. 3. Control activities & segregation of duties; 4. 4. Accounting, information & communication; and 4. 5. Self assessment & monitoring 4. 1 Control Environment: The environment in which internal control operates has an impact on the effectiveness of the control procedures. In fact it is institution’s control environment which embodies the principles of strong internal control. Besides giving structure to the internal control system, it provides iscipline and protocol. The success of control environment is judged according to the integrity, ethics, and co mpetence of personnel; the organizational structure of the institution; oversight by the board of directors and senior management; management’s philosophy and operating style; attention and direction provided by the board of directors and its committees, especially the audit and risk management committees; personnel policies and practices and; external influences affecting operations and practices. In order for internal controls to be effective, an appropriate control environment should demonstrate following behaviors:Board of directors reviews policies and procedures periodically and ensures their compliance; Board of directors determines whether there is an audit and control system in place to periodically test and monitor compliance with internal control policies/procedures and to report to the board instances of noncompliance; Board of directors ensure independence of internal and external auditors such that internal audit directly reports to the audit committee of the bo ard which is responsible to the board and that external auditor interacts with the said committee and presents management letter to the board directly; Board ensures that appropriate remedial action has been taken when instance of noncompliance are reported and that system has been improved to avoid recurring errors/mistakes; Management information systems provides adequate information to the board and that the board can have access to financial institutions records, if need arises; Board and management ensure communication of conduct or ethics policies and compliance thereof down the line within the organization; In short, a strong control environment and an effective internal audit function, can significantly complement specific control procedures.However, constitution of internal control environment at a point-of-time does not, by itself, ensure the effectiveness of the overall system of internal control but it is the continuous supervision by management to ensure if it is functi oning as prescribed and is modified as appropriate. Many internal control failures that resulted in significant losses for financial institutions could have been substantially lessened or even avoided if the board and senior management of the organizations had established strong control cultures. Weak control cultures often had two common elements: First, senior management failed to emphasis the importance of a strong system of internal control through their words and actions, and most importantly, through the criteria used to determine compensation and promotion.Second, senior management failed to ensure that the organizational structure and managerial accountabilities were well-defined. For example, senior management failed to require adequate supervision of key decision makers and reporting of the nature and conduct of business activities in a timely manner. Senior management may weaken the control culture by promoting and rewarding managers who are successful in generating profi ts but fail to implement internal control policies or address problems identified by internal audit. Such actions send a message to others in the organization that internal control is considered secondary to other goals in the organization, and thus diminish the commitment to and quality of the control culture. 4. 2 Risk assessment and management:Every financial institutions activity involves some kind of risk and this creates a compulsion for the financial institutions that, as part of an internal control system, these risks are being identified, assessed and mitigated. From an internal control perspective, risk assessment involves; identification and evaluation of factors, both internal and external, that could adversely affect performance, information and compliance objectives of a financial institutions. Internal factors include: complexity, nature and size of operations; quality of personnel and employee turnover; objectives and goals, etc. External factors include: fluctuating economic conditions, changes in the industry and technological advances, degree of aggressiveness of the market and competition faced by the market participants, etc.It may be noted that it differs from the risk management process, which typically focuses more on the review of business strategies and plans developed to maximize the risk/reward trade-off within the different areas of the financial institutions. This risk identification should be done across the full spectrum of activities addressing both measurable and non-measurable aspects of risks. Second part of risk assessment – evaluation is done to determine which risks are controllable by the financial institutions and which are not. For those risks that are controllable, the financial institutions must assess whether to accept those risks or the extent to which it wishes to mitigate the risks through control procedures.For those risks that cannot be controlled, the financial institutions must decide, for the present, whether to these risks or to withdraw from or reduce the level of business activity concerned. But for the future, internal controls may need to be revised to appropriately address any new or previously uncontrolled risks. An effective risk assessment system allows the board and the management to plan for and respond to existing and emerging risks in the financial institutions activities. For that matter, such a system needs to demonstrate following: Board and management involve audit personnel or other internal control experts in the risk assessment and risk evaluation process.Those experts should be competent, knowledgeable, and provided with adequate resources. As the risks mutate with time and with changing circumstances, the board and the management, with due involvement of audit personnel, should appropriately evaluate the risks and consider control issues related to existing products and those relevant to new products and activities. Risk coverage in the form of insurance (t hat is risk transfer) or provisioning (contingency fund) in relation to the financial institutions risk profile is adequate. In the recent past, inadequate risk assessment has contributed to some organizations’ internal control problems and related losses.In some cases, the potential high yields associated with certain loans, investments, and derivative instruments distracted management from the need to thoroughly assess the risks associated with the transactions and devote sufficient resources to the continual monitoring and review of risk exposures. Losses have also been caused when management has failed to update the risk assessment process as the organization’s operating environment changed. For example, as more complex or sophisticated products within a business line are developed, internal controls may not be enhanced to address the more complex products. A second example involves entry into a new business activity without a full, objective assessment of the risk s involved.Without this reassessment of risks, the system of internal control may not appropriately address the risks in the new business. 4. 3 Instituting Controls: Control activities are designed and implemented to address the risk that the financial institutions identified through the risk assessment process as described above. Control activities involve: (a) establishment of control policies and procedures, (b) verification that the control policies and procedures are being complied with. It is desired that control activities should involve all levels of personnel in the financial institutions, including senior management as well as front line personnel. Instituting an appropriate controls structure ensures the efficacy of an internal control system. This process involves:Existence and compliance of policies and procedures ensuring that decisions are made with appropriate approvals and authorizations for transactions and activities while assuring that exceptions to the policies are minimal and reported to the board and the top management; Timely reconciliation of accounts so that outstanding items, both on-and of balance-sheet, are resolved and cleared; Segregation of duties, existence of cross-checks, more-than-one-person authorization, dual controls, joint custody of keys, safeguards for access to and use of sensitive assets and records and forced leave policies, employees rotation systems are functioning in sensitive positions or risk-taking activities so that concerned employees do not have absolute control over areas; Building of such reporting lines within a business or functional area that independence of the control function is ensured; Accountability mechanism for the actions taken by the personnel as per their responsibilities and uthorities; Structure and functioning of compliance framework through which the board and senior management establishes that compliance with applicable laws and regulations is ensured. In short, top level reviews; appro priate activity controls for different departments or divisions; physical controls; checking for compliance with exposure limits and follow-up on noncompliance; a system of approvals and authorizations; and, a system of verification and reconciliation are major constituents of the control activities. 4. 4 Accounting Information and Communication Systems An institution’s accounting, information, and communication systems ensure that risk-taking activities are within policy guidelines and that the systems are adequately tested and reviewed.For this the following is important to note; Effective internal control system requires that there is an effective reporting system of information that is relevant to decision making. The information should be reliable, timely accessible and provided in a consistent format. Information would have to include external market information about events and conditions that are relevant to decision making. Internal information include financial, ope rational and compliance data. There, should be appropriate committees within the organization which would evaluate data received through various information systems. This will ensure supply of correct and accurate information to the management.Internal information must cover all significant activities of the financial institutions. These systems including those that hold and use data in electronic form must be secure, monitored independently and supported by contingency arrangements. Most importantly the channels of communication must ensure that all s fully understand and adhere to policies and procedures effecting their duties and responsibilities and that other relevant information is reaching the appropriate personnel. An accounting system is adequate if it properly identifies, assembles, analyzes, classifies, records, and reports the institution’s transactions in accordance with prescribed formats and international best practices.The adequacy of information systems is de termined by the type, number, and depth of reports it generates for operational, financial, managerial, and compliance-related activities and the access and authorization to information systems. An ideal information system covers the full range of its activities in such a manner that information remains understandable and useful for audit trail. Adequate information and effective communication are essential to the proper functioning of a system of internal control. From the financial institutions perspective, in order for information to be useful, it must be relevant, reliable, timely, accessible, and provided in a consistent format.Information includes internal financial, operational and compliance data, as well as external market information about events and conditions that are relevant to decision making. Internal information is part of a record-keeping process that should include established procedures for record retention. On the one hand, the adequacy of communication systems is established by the fact that it imparts significant information throughout the institution (from the top down and from the bottom up, and laterally), ensuring that personnel understand whatever has been communicated and on the other hand, communication system should ensure that significant information is imparted to external parties such as regulators, shareholders, and customers. Without effective communication, information is useless.Senior management of financial institutions needs to establish effective paths of communication in order to ensure that the necessary information is reaching the appropriate people. This information relates both to the operational policies and procedures of the financial institutions as well as information regarding the actual operational performance of the organization. The organizational structure of the financial institutions should facilitate a complete flow of information – upward, downward and across the organization. A structure that facilitates this flow ensures that information flows upward so that the board of directors and senior management are aware of the business risks and the operating performance of the financial institutions.Information flowing down through an organization ensures that the financial institutions objectives, strategies, and expectations, as well as its established policies and procedures, are communicated to lower level management and operations personnel. This communication is essential to achieve a unified effort by all financial institutions employees to meet the financial institutions objectives. Finally, communication across the organization is necessary to ensure that information that one division or department knows can be shared with other affected divisions or departments. 4. 5 Self-Assessment and Monitoring: An integral component of internal control system is self-assessment and monitoring which includes: Board and senior management oversight of the internal control, control r eviews, and audit findings.Before starting full scale control review, the board and senior management should give their approval of the overall scope of the control review activities (e. g. , audit, loan review, etc. ). Frequent and comprehensive reporting of deviations to the board or board committee and senior management regarding sufficiency of details and timely presentation to allow for resolution and appropriate action. Adequate documentation of management responses to audit or other control review findings so that it can be tracked for adequate follow-up. Board or board committee or senior management review of the qualifications and independence of the personnel evaluating controls (e. g. , external auditors, internal auditors, or line managers). Financial institutions is a dynamic, rapidly evolving industry.Financial institutions must continually monitor and evaluate their internal control systems in light of changing internal and external conditions, and must enhance these systems as necessary to maintain their effectiveness. Monitoring the effectiveness of internal controls should be part of the daily operations of the financial institutions but also include separate periodic evaluations of the overall internal control process. The frequency of monitoring different activities of a financial institution should be determined by considering the risks involved and the frequency and nature of changes occurring in the operating environment. Ongoing monitoring activities can offer the advantage of quickly detecting and correcting deficiencies in the system of internal control.Such monitoring is most effective when the system of internal control is integrated into the operating environment and produces regular reports for review. Examples of ongoing monitoring include the review and approval of journal entries, and management review and approval of exception reports. (B) CONTROL PRINCIPLES So far we have discussed about the elements of a sound internal contr ol. Now the question is how to assess the internal controls of a particular organization The following principles related to the basic elements of control should be borne in mind while assessing internal control: A. Management Oversight and Control Environment Principle 1:The board of directors should have responsibility for approving and periodically reviewing the overall business strategies and significant policies of the financial institutions; understanding the major risks run by the financial institutions, setting acceptable levels for these risks and ensuring that senior management takes the steps necessary to identify, measure, monitor and control these risks; approving the organizational structure; and ensuring that senior management is monitoring the effectiveness of the internal control system. The board of directors is ultimately responsible for ensuring that an adequate and effective system of internal controls is established and maintained. Principle 2:Senior management should have responsibility for implementing strategies and policies approved by the board; developing processes that identify, measure, monitor and control risks incurred by the financial institutions; maintaining an organizational Structured that clearly assigns responsibility, authority and reporting relationships; ensuring that delegated responsibilities are effectively carried out; setting appropriate internal control policies; and monitoring the adequacy and effectiveness of the internal control system. Principle 3: The board of directors and senior management are responsible for promoting high ethical and integrity standards, and for establishing a culture within the organization that emphasizes and demonstrates to all levels of personnel the importance of internal controls. All personnel at a financial institution sing organization need to understand their role in the internal controls process and be fully engaged in the process. B) Risk Recognition and Assessment Principle 4:An effective internal control system requires that the material risks that could adversely affect the achievement of the financial institutions goals are being recognized and continually assessed. This assessment should cover all risks facing the financial institutions (that is, credit risk, country and transfer risk, market risk, interest rate risk, liquidity risk, operational risk, legal risk and reputation risk). Internal controls may need to be revised to appropriately address any new or previously uncontrolled risks. C) Control Activities and Segregation of Duties Principle 5: Control activities should be an integral part of the daily activities of a financial institution. An effective internal control system requires that an appropriate control structure be set up, with control activities defined at every business level.These should include: top level reviews; appropriate activity controls for different departments or divisions; physical controls; checking for compliance wit h exposure limits and follow-up on non-compliance; a system of approvals and authorizations; and, a system of verification and reconciliation. BIS Framework for Internal Control Systems in Financial institutions. Principle 6: An effective internal control system requires that there is appropriate segregation of duties and that personnel are not assigned conflicting responsibilities. Areas of potential conflicts of interest should be identified, minimized, and subject to careful, independent monitoring. D) Information and communication Principle: 7An effective internal control system requires that there are adequate and comprehensive internal financial, operational and compliance data, as well as external market information about events and conditions that are relevant to decision making. Information should be reliable, timely, accessible, and provided in a consistent format. Principle 8: An effective internal control system requires that there are reliable information systems in pla ce that cover all significant activities of the financial institutions. These systems, including those that hold and use data in an electronic form, must be secure, monitored independently and supported by adequate contingency arrangements. Principle 9:An effective internal control system requires effective channels of communication to ensure that all staff fully understand and adhere to policies and procedures affecting their duties and responsibilities and that other relevant information is reaching the appropriate personnel. (E) Monitoring Activities and Correcting Deficiencies Principle 10: The overall effectiveness of the financial institutions internal controls should be monitored on an ongoing basis. Monitoring of key risks should be part of the daily activities of the financial institutions as well as periodic evaluations by the business lines and internal audit. Principle 11: There should be an effective and comprehensive internal audit of the internal control system carrie d out by operationally independent, appropriately trained and competent staff.The internal audit function, as part of the monitoring of the system of internal controls, should report directly to the board of directors or its audit committee, and to senior management. Principle 12: Internal control deficiencies, whether identified by business line, internal audit, or other control personnel, should be reported in a timely manner to the appropriate management level and addressed promptly. Material internal control deficiencies should be reported to senior management and the board of directors. RESPONSIBILITIES OF THE PARTIES TO INTERNAL CONTROL The board of directors, senior management and other personnel of financial institutions are responsible for establishing, maintaining, and operating an appropriate internal control system on an ongoing basis. Board of Directors:The Board of Directors of all financial institutions is responsible for ensuring that an adequate and effective intern al control system exists in their organization and that the senior management is maintaining and monitoring the performance of that system. Moreover, Board should periodically review the internal control systems and the significant findings. From the above it can be said that: The overall responsibility of setting acceptable level of risk, ensuring that the senior management committee take necessary steps to identify , measure , monitor and control these risks, establishing broad business strategy, significant policies and understanding significant risks of the company rests with the Board of Directors.Through the establishment of an ‘Audit Committee' of the Board and ‘Internal Control Department’ the Board of Directors can monitor the effectiveness of internal control system. The internal as well as external audit reports will be sent to the board without any intervention of the management and ensure that the management takes timely and necessary actions as per t he recommendations. The Board should have periodic review meetings with the senior management to discuss the effectiveness of the internal control system of the company and ensure that the management has taken appropriate actions as per the recommendations of the auditors and internal control. Management:Senior management of financial institutions have the responsibility for implementing strategies and policies as approved by the board in work place ; developing processes that identify, measure, monitor and control risks incurred by the financial institutions; maintaining an organizational structure that clearly assigns responsibility, authority and reporting relationships; ensuring that delegated responsibilities are effectively carried out; setting appropriate internal control policies; and monitoring the adequacy and effectiveness of the internal control system. Audit Committee of the Board: This Committee shall be formed by the Board of a company.The members of the Audit Committ ee shall be the selected Directors and the Managing Director. The Committee shall seat at least quarterly in a year. The Committee shall perform its work through an Internal Control Unit comprising of the Audit & Inspection wing and Compliance wing. The Committee shall monitor the adequacy and effectiveness of the Internal Control System based on established policies and procedure. The Committee vide its two wing shall produce, on quarterly basis, a report on internal control system and significant findings and present it to the Board. The terms of reference of the Audit Committee, frequency of meeting , name of the members of the Committee shall be decided by the Board. External Auditor:The external auditors are not part of a financial institution and, therefore, are not part of its internal control system, yet they have an important impact on the quality of internal controls through their audit activities, including discussions with management and recommendations for improvement o f internal controls. The external auditors provide important feedback on the effectiveness of the internal control system. The concept of external reporting on internal controls is well established and supported in the accounting literature. It is expected that external / statutory auditors shall review control systems for the impact they have on financial reporting and compliance with relevant policies, procedures, regulations and laws.The extent of attention given to the internal control system may vary by auditor and by financial institutions; however, it is generally expected that the auditor would identify significant weaknesses that exist at a financial institutions and report material weaknesses to management and the board in the form of an audit report/ management letter. As regards internal control and the role of external auditors the following things should be borne in mind by the auditors: External Auditors by dint of their independence from the management of the financi al institutions can provide unbiased recommendation on the strength and weakness of the internal control system of the financial institutions.They can examine the records, transactions of the financial institutions and evaluate its accounting policy, disclosure policy and methods of financial estimation made by the financial institutions; this will allow the board and the management to have an independent overview on the overall control system of the financial institutions. It should be made obligatory on the part of the auditor to report to the Bangladesh Bank immediately if during the course of audit the auditor come across any facts which (1) might warrant qualification (2) endanger the entity audited and (3) indicate that the organization has severely infringed the regulatory provisions/guidelines. Regulator:The Financial Institutions Department(FID) of Bangladesh Bank is the direct supervisor of the financial institutions of Bangladesh. FID has many responsibilities to the Fina ncial Institutions to protect interest of the public and to maintain financial discipline. The responsibilities of FID should be regulatory as well as advisory. In order to achieve the regulatory and supervisory objectives the Bangladesh Bank may introduce a comprehensive supervisory framework. Supervision can be of two types: a. On Site Supervision and b. Off Site Supervision Off site supervision would structurally be an in-house review and analysis based on various statutory returns and other statements.On site supervision includes physical visit and inspection by Bangladesh Bank Official ensuring regulatory compliance, evaluation of financial soundness, appraisal of management and identification of areas requiring corrections, review of asset quality , analysis of key financial indicators etc. As a regulator the Bangladesh Bank may introduce a system whereby the name of the Financial Institute which had not complied with the regulatory directions could be published in the newspap ers. The Bank may make it compulsory for the NBFIs to do credit rating periodically. The Bank may introduce an on-line corporate memory/profile building process based on the observations generated from off-site surveillance system, , market intelligence, complaints, supervisory rating, record of compliance with directions and inspection findings.Bangladesh Bank may think of devising a suitable system for co-coordinating the Onsite inspection in tandem with the other regulatory authorities so that these NBFIs are subject to one shot examination by different regulatory authorities. The Bank may think of introducing a supervisory rating system for the NBFIs. Such a rating system should be designed on the basis of different levels of regulatory compliance, capital adequacy and rating assigned by the credit rating agencies. Based on the rating the NBFIs may be placed in three different supervisory â€Å"watch list† with low, medium and high risks. The rating assigned may primarily be the tool for triggering on-site inspection at various intervals.It shall play its role as a watch dog, review the compliances of the regulations and Circulars issued from time to time through periodic inspections and visits, issue new directives for the betterment of macro economy, take corrective actions, if necessary, provide necessary advises and clarifications to the NBFIS. During the course of regular inspection of financial institutions or when required, Financial institutions Department (FID)of Bangladesh Bank shall review the internal control system of any financial institutions in order to ensure compliance with these guidelines and all other relevant regulations and laws, circulars issued and enforced from time to time.In addition to that, the FID may review the report of the internal auditor of the financial institutions, assessment report of the management regarding effectiveness of the internal control and Boards’ endorsement thereof and the external/statutor y auditors’ evaluation of the management regarding effectiveness of the internal control. In addition to the above the following points shall also apply to the regulators: For the financial institutions Bangladesh Bank is the primary regulator, who governs the activities of financial institutions. In addition Tax Authority, Registrar of Joint Stock Company Finance Ministry, Securities and Exchange Commission etc. are different types of Govt. bodies whose directives have significant impact of financial institutions business. The internal control system should always take into account the financial institutions internal processes to meet the regulatory requirement before conducting any operation.The internal control system of the financial institutions must be designed in a manner that the compliance with regulatory requirements is recognized in each activity of the financial institutions. The financial institutions must obtain regular information on regulatory changes and dist ribute among the concerned department, so that they can take necessary, action to adapt to such changes. The financial institutions must develop an effective communication process which will allow smooth distribution of relevant regulations among different departments and, personnel. IMPLEMENTATION OF INTERNAL CONTROLS: Various models/methodologies are used for the design and implementation of internal controls.However, it is the decision of the organizations to decide what model / strategy suit the size, nature, complexity, scope, risk exposure, etc. of their activities. Nevertheless, following is a brief summary of the key points that should be kept in mind while implementing the internal controls: Compare current practices to the internal control system and identify gaps. For an internal control expert, the most important consideration should be to evaluate the existing system of internal control in comparison to one defined by these guidelines and other international best practi ces. In this regard the first step is to identify what is and what is not covered by existing practices. Involve senior management, the audit committee, audit staff, other key players.The thought process and implementation of change should not be considered as â€Å"just other audit things. † Senior management and the audit committee must be perceived as driving the change and developing the control culture. Assess business environment, organization culture and key players. Before the process of change is set in, it would be necessary to understand: (1) what is changing in the culture (2) What is changing in the organization’s businesses and systems (3) Are there organizational initiatives which internal control system implementation could link to (4) What is the perception about the internal auditing function within the organization .Decide on implementation strategy. If the new practices can be designed to align with other organizational initiatives, or if senior man agement has taken ownership, this step is relatively easy. In any case, having a realistic implementation strategy is critical to success. Most implementers introduce the new ideas slowly and informally, building on personal relationships within the organization, listening as much as talking, and gradually building a consensus for change. Provide training to everyone involved. The most critical factor to the successful implementation of a control model is that everyone involved must understand internal control.Effective training depends heavily on how concepts are phrased and the concrete examples and exercises which make the concepts real to participants. Rectification & Improvement: The findings of the internal audit department and that of other experts should be reported back to the relevant staff/office for rectification and improvement of the internal control system. Instituting an appropriate organization structure: Organization structure plays a vital role in establishing eff ective internal control system. It is the sometimes called the pictorial representation of the chain of command and the authority and supervision chain of an organization.The essence of the ideal organizational structure that will facilitate effectiveness of the internal control system is the segregation of duties. The financial institutions should, depending on the nature of business, structure, size, location of its branches and strength of its manpower try to establish an organizational structure which allow segregation of duties among its key functions such as marketing, operations, credit, financial administration etc. Up to which level this segregation will take place will depend on an individual financial institution. For instance a financial institution which has small branch operations at remote places of the country may not find it feasible to have such functional segregation of duties at that branch level.However at the higher level such segregation should exist and where possible this should be extended to the branch levels. In cases where such segregation is not possible, there must be certain monitoring mechanism which should be independently reviewed to ensure all policies and procedures are followed at the branch level. A detail guideline in this respect is given in the following section. Structure of the Internal Control Unit For an effective control system a separate organizational structure is also provided for this unit. The audit committee of the board shall be the contact point for the internal control unit. The unit should be adequately staffed so that it can perform its duty properly.In order to ensure that availability of efficient people with internal control the financial institutions will make it mandatory for all middle to senior management staff to spend at least two years with internal control on second meant. The head of internal control will report directly to the Audit Committee of the Board He will be responsible for the both compliance and control related tasks which include compliance with laws and regulation, audits and inspection, monitoring activities and risk assessment. The audit team of the internal control unit will perform periodic and special audit and inspection. The compliance unit will be responsible to ensure that financial institution complies with all regulatory requirement while conducting its business.They will maintain liaison with the regulators at all level and notify the other units regarding regulatory changes. Audit Committee of Board Audit & Inspection Wing Inspector Compliance Wing Internal Control Unit Preparing various guidelines/manuals Each Financial institution should have a policy guideline in line with relevancy laws and internal documents in order to ensure an effective control over its process in various fields e. g. credit, human resources, finance & accounts, treasury, audit, customer service etc. There should be a written policy guideline for each Departmentâ€℠¢s function which may be as follows. (a) Standard Operating Procedures -Credit & Operations The main objective of lending money is to ensure maximum return of lend able fund.This manual should highlight the process starting from review of credit proposals, obligor risk rating, approving credit limit, disbursement of loans, monitoring of credit risk etc. Various types of MIS should be provided in order to have better control over assets of the financial institutions which can be generated if the system is in place. This manual should also contain role of Credit Admin. , Trade Finance, Reconciliations, Cash, Client’s service, Treasury, Back office etc. It should also reflect a clear guideline regarding Anti-Money Laundering activity in order to protect Financial institution’s interest. Credit Admin will be responsible for monitoring of limits and outstanding as per credit approval.This manual should cover the following areas inter alias: Risk classes, lending limits and credit authorities Investment policies Policies on financial & other product & services Lending guidelines Approval processes Documentations Securities and collaterals etc. Account Opening and closing Payment monitoring procedures Loan Administration Treasury Operations Anti-money Laundering procedures etc. (b) Finance & Accounting Manual This manual should provide guidelines on financial activities regarding income and expenditure of a financial institution. They will look after if there is any exaggeration of expenditure where it is necessary to get control.This manual must incorporate a clause which shall make it mandatory to prepare and present an annual budget which shall contain target business, revenue, expenses, capital expenditures etc. This budget should be placed to the Board before starting of a new year and a periodic review of the actual achievement. Through this process it can also ensure the profitability of the financial institutions. The basic content of Finance Ma nuals are: Financial & Accounting Policies Financial Accounting Financial Management & Administration Fixed Assets Control Procurement of Goods and Services Audit and Internal Control General Clause Capital structure policies Treatment of Land, Building & Equipment Capital Adequacy and Shareholders EquityTreatment of revenue and expenditures Income tax procedures Write-off procedures etc. (c) Treasury Manual This manual should include activities of fund transfer. Inter financial institutions fund management is one by them. The manual should include the guideline so that they may manage the financial institutions fund properly and profitably. There may be some idle fund in the financial institutions which is to be taken into account so as to make them invested in optimum profit seeking area. They should also ensure the security of the fund. If possible, they may look into international money market subject to the available opportunity in the money market arena.While framing a treasur y manual the following things should be considered inter alias : Internal Items Liquidity Cost of fund Vs. yield from assets Policies & Procedure Skill of staff etc. External Items Market Liquidity Risks including changes in Exchange Rates Changes in regulations etc. Investments Capital management etc. (d)Human Resource Policy Manual They will, at first, ensure the proper distribution of available human resources in the infrastructure of the financial institutions. It should also delineate the authority and responsibility of each employees . To find out the right person for setting up them at the right position is very crucial.The rewarding method of that department should be impartial. They will ensure staff welfare which will ultimately encourage people and create a healthy working atmosphere. This manual should contain inter alias the following: Recruitment policy Background checking policy Leave policy Compensation policy Reward and Recognition policy Termination & retirement po licy Promotion and increment policy Training guidelines Employees code of conduct etc. (e)Information Technology Manual This manual should contain the following areas: MIS to be generated Security of Data and programme Back up system Control mechanism of data and files Disaster recovery plan NetworkingHardware maintenance Service agreements etc. Training Manpower backup Power backup system Data storage 20 EXAMINATION OR EVALUATION OF CONTROL As soon as the implementation of control is completed the next question is how to evaluate the effective functioning of this system. Evaluation may be done in the following ways: a. Verification of departmental function through Check List b. Reviewing the documentation relating to operational activities through a check list c. Preparing quarterly report and reviewing the same d. Risk analysis e. Audit Process & communication of weakness Departmental Control Function Checklist (DCFCL) {Appendix 7. 1 to 7. 4} ) The guideline/procedure deals with m atters relating to review/verifications of departmental functions to ensure that prescribed procedures are being followed by each department. b) All departments are required to check that prescribed controls are being observed and laid down procedures are not overlooked & relaxed. c) Departmental Managers/Branch Managers will review the DCFCL to ensure that control functions are performed and documented in the control sheets (Appendix 1) at the prescribed frequencies i. e. Daily, weekly, monthly and quarterly. d) The DCFCL Checklist should be retained with the branch/departments for future inspection by Internal Control and Senior Management. Loan Documentation Checklist {Appendix 7. 6}The checklist deals with matters relating to security/other documentation for sanctioning credit facilities to ensure that prescribed documentation is being obtained to safe guard financial institutions interest in case of litigation. Copy of the loan documentation check list shall be sent to the leas e/loans department for their use. Quarterly Operations Report {Appendix 7. 5} This guideline/procedure relates to reporting of operational functions of each branch/centre under the following heads on the enclosed format: i. Policies, Procedures and Controls ii. Protection of Valuables iii. Proofs/Verifications and Internal Checks iv. Personal and Supervision and v. Premises Management vi. Confirmation on Regulatory Compliance This report will be prepared by the Departmental/Branch Head .This will be prepared in duplicate copies one copy is to be dispatched to Internal Audit Department and another copy to the Audit Committee of the Board by 10th of the following month. The items which are not applicable for individual Department should be marked as N/A and no signature is required against the items marked as N/A. Any deviation in the quarterly operations report must be reported in a separate exception report or shall be marked specially in the report. Risk Analysis of Control Functio ns Individual items in the DCFCL need to be assigned a risk rating in terms of the following dimensions: a) Impact: Before taking into account the mitigation (i. e. Insurance) what is the impact of the lapse/omission. b) Probability: After taking into account of the mitigation what is the likelihood of the event occurring.To assist in this task, the following matrix (Table 1) can be used. However some financial institutions may consider customization of this matrix to suit their own risk profile. Where appropriate, additional details (e. g. financial values can be added). The key principle is that all financial institutions should be able to differentiate between different levels of risk in their own area of activity and then ensure appropriate controls are established. Scores should be plotted on the following table to determine a category of high, medium and low risk. Conclusion Recommendations The quality of internal control is (strong, satisfactory, weak). Note: Examiners should use appropriate tools (e. g. the CEO questionnaire,ICQs, and FDICIA internal control assertion work papers) and findings from all areas under examination, including the OCC’s review of the bank’s audit functions, when completing these objectives and steps. When substantive supervisory concerns about the adequacy of internal control or the integrity of financial reporting controls exist after achieving the following objectives and performing the following steps, examiners should consider performing additional examination procedures, such as using ICQs,for those areas of concern. If, after completing those additional procedures, examiners remain concerned about internal control adequacy or financial reporting control integrity, they should perform appropriate verification procedures to confirm the existence and description of bank assets.As an alternative, examiners may require the bank to expand its own verification program to include the areas of weakness or deficienc y; however, this alternative will be used only if management has demonstrated a capacity and willingness to address regulatory problems, if there are no concerns about management’s integrity, and if management has initiated timely corrective action in the past. Use of this alternative must result in timely resolution of each identified supervisory problem. If examiners use this alternative, supervisory follow-up must include a review of work papers in areas where the bank’s program was expanded The institution’s internal control is (strong, satisfactory, weak)Objective: Assess the overall effectiveness and adequacy of the institution’s internal control, communicate findings to the EIC, management, and the board of directors, and complete/update OCC work papers. 1. Prepare written conclusion summaries, discuss findings with the Rican communicate findings to management.Conclusion summaries should address, as appropriate,†¢ Whether the internal control environment poses actual or potential undue risk to the institution’s financial performance for any of the following reasons:– The magnitude of control exceptions. – Financial effect of inaccurate, untimely, or improper transactions. – Previous losses from fraud. – Claims against insurance policies. – Employee turnover. – Other high operational losses. – Violations of laws or regulations and nonconformance with established internal policies and procedures related to the internal control functions. †¢ The adequacy of internal control policies, procedures, and programs to control and limit risk in bank operations. †¢ Whether bank personnel operate in conformance with established policies and, if not, the causes and consequences of nonconformance. The adequacy of information on the internal control function received by the board or its committee†¢ Significant areas of control weakness identified by internal or exter nal audits or other control reviews and the board’s and management’s progress in addressing those weaknesses. †¢ Audit or other control review report findings not acted upon by management, as well as any other concerns or recommendations resulting from the review of internal control functions. †¢ Recommended corrective actions, if applicable, and management’scommitments. 2. Determine how the quality of internal control affects the aggregate level and direction of OCC risk assessments.Examiners should refer to guidance provided under the OCC’s risk assessment programs for large and community banks. 3. Determine how the quality of internal control affects the bank’s composite and component CAMELS ratings. In coordination with examiners performing information system/technology, asset management, and fiduciary reviews, communicate the effect of control findings and conclusions on Uniform Rating System for Information Technology (URSIT), Unifo rm Interagency Trust Rating System (UITRS),and compliance ratings. 4. Determine, in consultation with the EIC, whether the risks identified are significant enough to merit bringing them to the board’s attention in the report of examination.If so, prepare items for inclusion under the heading â€Å"Matters Requiring Attention† (MRA). MRA comments should cover practices that (1)deviate from sound fundamental principles and are likely to result in financial deterioration if not addressed or (2) result in substantive noncompliance with laws or internal policies or processes. The examiner should provide details regarding:†¢ Factors contributing to the problem’s and management Consequences of inaction.. †¢ Management’s commitment to corrective action. †¢ The time frame for any corrective action and who is responsible further action. 5. Update any applicable schedule or table and include a comment on internal control in the report of examination.T he comment should address†¢ Adequacy of internal control policies and processes, internal control and overall programs, personnel, and board oversight. †¢ Significant problems discerned by the auditors or other control reviewers that have not been corrected. †¢ Any deficiencies or concerns reviewed with management, any corrective actions recommended by examiners, and management commitments to corrective actions. 6. Prepare a memorandum and update OCC work programs with any information that will facilitate future examinations. Make recommendations about the scope of the next internal control review and determine whether internal control findings should change the scopes of other area reviews. 7. Update the OCC databases, including rating screens/schedules.