Mcgee Cake Company

Running Header: CASE STUDY 1 The McGee Cake Company: A Case Study Submitter Instructor BUS Course 2012 CASE STUDY 2 Introduction The McGee Cake Company, owned by Doc and Lyn McGee, has been a sole proprietorship company since its inception in 2005 (Ross, Westerfield & Jordan, 2013, p. 18).A sole proprietorship â€Å"is the least regulated form of organization† and has allowed the McGee's to run their company largely as they see fit and to reap all the financial profits. However, the company's recent growth has added additional financial burdens which have caused the McGee's to revisit the company's current form of organization (Ross, Westerfield, & Jordan, 2013, p. 5). To that end, the owners have approached me â€Å"to help manage and direct the [company since its fast growth has] led to cash flow and capacity problems† (Ross, Westerfield & Jordan, 2013, p. 8). What follows is information on â€Å"the advantages and disadvantages of changing the company's organizati on from a sole proprietorship to an [limited liability company] as well as â€Å"the advantages and disadvantages of changing the [company's current form of business organization] to a corporation† (Ross, Westerfield & Jordan, 2013, p. 18). In addition, the McGee's have asked me for my recommendation as to which form of business organization I believe the company should undertake and the reasons/rationale behind my recommendation.CASE STUDY 3 Key Issue The one key issue that has led the McGee's to consider moving the company from a sole proprietorship to a limited liability company or that of a corporation is the company's recent rapid growth. This growth has presented both opportunities and challenges for the company as a whole.Specifically, â€Å"sales have exploded† since The McGee Cake Company was recently featured in â€Å"a leading specialty food magazine† (Ross, Westerfield & Jordan, 2013, p. 18). While this growth has allowed the McGee's to use the comp any's revenues as their sole source of income, it has increased their need for capital as they have had to hire â€Å"additional workers to meet the demand† (Ross, Westerfield & Jordan, 2013, p. 18). Also, additional capital will be needed to purchase more assets in an effort to keep up with the company's continuing growth (Ross, Westerfield & Jordan, 2013, p. 8). Under the current business form these two increased expenditures—payroll and assets–are the sole financial responsibility of the McGee's which may cause some financial stress since their available â€Å"equity†¦ is limited to the amount of [their] personal wealth† (Ross, Westerfield, & Jordan, 2013, p. 5). This growth has also presented the McGee's with the opportunity to enter into business with â€Å"a national supermarket chain [that has proposed] to put four of [the McGee's] cakes in all of the chain's stores† (Ross, Westerfield & Jordan, 2013, p. 18).In addition, the McGee's hav e been approached by â€Å"a national restaurant chain [in regards to] selling McGee cakes in its restaurants† (Ross, Westerfield & Jordan, 2013, p. 18). Again, under sole proprietorship the company may miss out on these opportunities â€Å"because of insufficient capital† to expand the business assets (Ross, Westerfield & Jordan, 2013, p. 5). For example, if the McGee's do not have the capital to purchase more ovens they may not be able to keep up with the increased demand from the supermarket/restaurant chains, potentially causing both business ventures to fail.In order for the company to capitalize on its current growth the McGee's need to be informed of the advantages and disadvantages of other forms of business organizations to determine which will best suit their needs for both the short- and long-term. CASE STUDY 4 Advantages and Disadvantages of Changing from a Sole Proprietorship to a Limited Liability Company â€Å"The goal of [a limited liability company] i s to operate and be taxed like a partnership but retain limited liability for owners† (Ross, Westerfield & Jordan, 2013, p. ). Thus â€Å"[t]he main advantage gained by shifting from a sole proprietorship to a more formal organization [whether it be a limited liability company or a corporation] is liability protection† (Cromwell, n. d. , n. p. ). Under sole proprietorship the McGee's have â€Å"unlimited liability for [their] business debts† (Ross, Westerfield & Jordan, 2013, p. 5). This means that if their business owes creditors and the McGee's are unable to pay with business assets the creditors can demand payment via the McGee's personal assets (Ross, Westerfield & Jordan, 2013, p. ). In contrast, under a limited liability company the McGee's personal assets would be protected â€Å"from business liability† (Cromwell, n. d. , n. p. ). Additionally, the McGee's must rely on their own personal wealth in an effort to raise equity whereas a limited liabili ty company affords the business â€Å"to bring a number of investors and partners† on board in an effort to raise capital (Ross, Westerfield & Jordan, 2013, p. 5; Cromwell, n. d. , n. p. ).Hence, the limited liability company will provide them with the capital they require to increase their business assets in order to keep up with the high demand for their products. In terms of taxes the McGee's currently report their personal and business taxes as one. Under a limited liability company they will no longer be able to claim their business income on their personal filings; separate tax returns would have to be filed for both their personal income and their business income (Cromwell, n. d. , n. p. ).Moreover, the McGee's would have to file documentation with the state prior to their company being able to claim limited liability status. The taxes and state filing issues, in my professional opinion, should not be viewed as detractors. The benefits the company will reap (e. g. , ab ility to raise capital) certainly outweigh the annual taxation preparation and filing with the state to ‘establish' the limited liability company. CASE STUDY 5 Advantages and Disadvantages of Changing from a Sole Proprietorship to a CorporationSome of the advantages of forming a corporation are, in contrast to sole proprietorship, â€Å"owner-ship [of a corporation] can be readily transferred† (Ross, Westerfield & Jordan, 2013, pp. 5-6). Also, like a limited liability company, a corporation has â€Å"limited liability for the company's debts and [stockholders] can only lose what they have invested† (Ross, Westerfield & Jordan, 2013, p. 6). In addition, unlike sole proprietorship, a corporation an unlimited [business] life† (Ross, Westerfield & Jordan, 2013, p. ). For these reasons, a corporation is a superior form of business organization for raising capital (Ross, Westerfield & Jordan, 2013, p. 6). Along with the advantages of forming a corporation comes t he main disadvantage: taxation. Corporations must deal with double taxation â€Å"meaning that†¦ profits are taxed [at both] the corporate level when†¦ earned and again at the personal level when they are paid out† (Ross, Westerfield & Jordan, 2013, p. 6).While a corporation provides many advantages the tax disadvantage that comes with it currently outweighs those advantages. CASE STUDY 6RecommendationWith The McGee Cake Company's rapid growth it is in need of changing its form of business organization. In particular, the McGee's â€Å"need enhanced protection for [their] personal assets from business obligations and liabilities as well as a better vehicle to attract investors† (Cromwell, n. . , n. d. ). Therefore, after carefully weighing the advantages and disadvantages of changing from a sole proprietorship to a limited liability company or that of a corporation my recommendation is for the former. Becoming a limited liability company will benefit them gr eatly since it provides limited liability in that their personal assets will be separate from their business assets, thus protecting their personal assets from creditors seeking payment if such a situation should ever arise.Becoming a limited liability company will also allow the McGee's to raise equity through partners and investors. Since the McGee's are in need of additional capital to purchase new business assets in an effort for them to keep up with the current demand for their products a limited liability company would allow them this advantage. Since this rapid growth may continue the McGee's may want to revisit becoming a corporation. However, my recommendation is for them to take the next logical and less daunting step and become a limited liability company for the reasons stated above.CASE STUDY 7 References Cromwell, J. (n. d. ). Demand Media: The Advantages and Disadvantages of Changing the Company Organization from a Sole Proprietorship. Retrieved from http://smallbusi ness. chron. com/advantages-disadvantages-changing-company-organization-sole-proprietorship-24632. html Ross, S. , Westerfield, R. , & Jordan, B. (2013). Fundamentals of Corporate Finance (10th ed. ). McGraw-Hill/Irwin: New York, NY

Goals and Aspirations Essay

When I grow up and go off to college I would like to pursue a career in electrical engineering. One important answer to this question is more opportunity. A college education is very important to me. High school graduates today are unable to obtain the number of high-paying jobs that were once available. It serves as the gateway to better options and more opportunity. The importance of a college education is also emphasized because of the opportunity to gain valuable resources during your time. The more connections you make from professors or friends are made during your college career, the more options you will have when you begin your job search. This scholarship will certainly strengthen my opportunity to pay for my books, fees and programs which I may not be able to pay for. The scholarship can help me further my professional training and certification goals that I have set for myself and will in turn help me start a true career in electrical engineering. â€Å"A man who has nev er gone to school may steal from a freight car; but if he has a university education, he may steal the whole railroad.† -Theodore Roosevelt

A Unique and Meaningful Life

Unique and meaningful life Unique and meaningful life is compatible with the concept of review framework for ethical actors. To defend this claim, I support Barbara Herman's Kant's debate about moral obligations. The rationale for responsibility is the fact that agents recognize and consider in the ethical review process and they are some facts, since they define the characteristics of our (rational) rational nature so moral meaning It is defined by the CI program (318). [1] The reason is guidance rather than performance reason To seek meaningful links in life is a congenital emotional motive, a distinctive human nature. That is another ability specific to humans - language - is expressed in a complex way, the ability to interpret and manipulate symbols. In many ways, life is a lifelong process of communicating your story, filling in details, explaining what it means, and reinterpretting. In addition to capturing these meanings, this practice is an opportunity to investigate your rel ationships, your self, your life, your past, and your thoughts, emotions, needs, passions, desires, etc. wait. But to free your mind from the old story, but you need courage to stand in the truth of the highest hope you want. It is not necessarily unique to make life worthwhile or make it meaningful. Lan Dao believes that believing that this particularity is related to meaning is another mistake made by many people. He believes that this misunderstanding misses ways to think their lives are unnecessarily meaningful and improves the meaning of life. This may be embarrassing, but very few people are wonderful. Philosopher Richard Taylor argues that in the book Good and Evil published in 1970, doing hard work and accomplishing does not make life important. Because we live, life is essential Theodore Roosevelt stated that the most remarkable thing is the opportunity to work hard. You can enrich your life with meaningful work, but what is creative work worth doing? Even if you are unique and superior to your work, ask yourself if your actual production makes sense. I am a unique supporter, but creativity is not worth it unless it has a significant or positive impact on people's lives. After all, there is a meaningful idea that you can do this. Over time, your creative journey will be more fulfilling

2-easy Discussion Questions Essay Example | Topics and Well Written Essays - 250 words

2-easy Discussion Questions - Essay Example 2. The Fishbone diagram introduced by Kaoru Ishikawa and the Pareto chart by Alfred Pareto are two important analytical tools which use cause-and-effect diagrams to understand problem situations. The difference between the two in terms of function is that the Fishbone diagram is used as an analytical tool to identify the root causes (and sub causes) of the effect (the problem) in a diagram form. For example the Riordan HR projects inefficient HRIS problem can be analyzed by plotting its main causes - material, man, management, equipment, measurements or environment, which lead to an inefficient information system on a fishbone. Once the cause is found, a learning cycle is used to resolve the problem and improve the process. On the other hand the Pareto Chart is a bar graph which arranges problems in priority of importance. The function of the Pareto chart is to find solutions for improvements by identifying the major problems in terms of frequency, cost and/or time. For example a Pareto chart can be used to analyze which of the main factors, that is people, management, equipment, measurements, material or environment in order of significance of effect on inefficiency on the HRIS. This way the organization can focus on finding solutions to the problem in order of

Chemistry assignment Essay Example | Topics and Well Written Essays - 1750 words

Chemistry assignment - Essay Example Thus we must multiply 3 to get the integers 3 and 4, for Fe and O subscripts respectively. This is the simplest, or empirical, formula because the subscripts are the smallest integers that express ratios of atoms present in the compound. Certain elements appear to violate the rules in electron configuration. The electron configuration of chromium is rather than , as one might have expected. Similarly, the configuration of copper is instead of . This anomalous behavior is largely a consequence of the closeness of the 3d and 4s orbital energies. It frequently occurs when there are enough electrons to lead to precisely half-filled sets of degenerate orbitals (as in chromium) or to completely filled d subshell (as in copper). Increasing the distance from the nucleus decreases the attraction between the electrons and the nucleus. As this attraction decreases, it becomes easier to remove the electron and, thus, lower ionization energy. Element A has the largest atomic number (greatest distance between outer electron and nucleus) because it has the least ionization energy. The ionization energies for an element increase in magnitude as successive electrons are removed. But when the next electron removed is an inner-shell electron, there is a sharp increase in ionization energy. The figure shown below tells us which group elements A-E should be placed. 19. 27.823g of Na2CO3.xH2O crystals were dissolved in water and made up to 1000 cm3 of solution. 25 cm3 of this solution required 48.8 cm3 of 0.1 mol dm-3 HCI for complete neutralisation. Find the value of x in Na2CO3.xH2O using the following steps: 20. 4.00g of lawn sand (a mixture of sand and ammonium sulphate) was weighed into a conical flask, and 25 cm3 of 2.0 mol dm-3 sodium hydroxide solution was pipetted into the same flask. The conical flask was boiled for 20 minutes, after which time all the ammonia had been driven off,

Orgnaizational Behavior Essay Example | Topics and Well Written Essays - 2500 words

Orgnaizational Behavior - Essay Example In general leadership refers to the use of non-coercive influence techniques. It is important to distinguish a leader from a dictator. Whereas dictators get others to do what they want by using physical coercion or by threats of physical force, leaders do not (Greenberg and Baron, 2003: pp 471). From the definition it is clear that leadership involves the exercise of influence for the purpose of attaining group or organisational goals. In other words, leaders focus on changing those actions or attitudes of their subordinates that are related to specific goals. They are far less concerned with altering followers' actions or attitudes that are irrelevant to such goals. (Greenberg and Baron, 2003: pp 471). Also, from the definition one can see that leadership requires followers that is leadership is a two way street. Although leaders do indeed influence subordinates in various ways, leader also are influenced by their subordinates. As a matter of fact one can say that leadership exists only in relation to followers. After all, one cannot lead without followers. (Greenberg and Baron, 2003: pp 471). Leadership style refers to the adoption of Authoritarian Management or a Democratic Management style by an individual in an organization, depending on which style is more comfortable to his or her personality. (Statt and David, 1999: pp 91). Leadership Styles Of Two Senior Member In My Organisation The leadership styles of two senior members in my organisation are as follows: The first senior member is primarily concerned with establishing good relations with subordinates and being looked by them. He/she engages in actions such as doing favours for subordinates, explaining things to them and taking steps to ensure their welfare. He is reluctant to act in a directive manner toward subordinates and often shy away from presenting them with negative feedback. The second Senior member on the other hand is concerned mainly with production and focuses primarily on getting the job done. The senior member engages in actions such as organising work, inducing subordinates to follow rules, setting goals, and making leader and subordinate rules explicit. The leadership styles discussed above can be linked as shown in the figure 2 below: Figure 2: Basic Dimensions of Leadership Behaviour. Taken from: (Greenberg and Baron, 2003: pp 471). From the figure above one can observe that though the leadership styles discussed earlier are far off from each other, these leadership styles often converge at times. For example, there are leaders who are both production oriented and at the same time person oriented. Some leaders can be 75% person oriented and 25% production oriented and vice versa. Also some leaders can score equal points for each of the two dimensions as well as some may not be found in any of the dimensions. That is they are neither person oriented nor production oriented. Likert's Four System approach. Following an extensive research at Michigan University, Rensis Likert came up with

Why the approach of Radical Feminism to prostitution is most superior Essay

Why the approach of Radical Feminism to prostitution is most superior - Essay Example While some see no problem with prostitution and defend it, others strongly call for the force of law to dispel this horrendous activity which has grave social repercussions. Many approaches have been identified by scholars over the years to understand and analyze the issue of prostitution. The three key approaches identified by Jaggar in her paper are related to liberalism, radical feminism, and classical Marxism. Each one of these approaches is comprehensively explicated and related to prostitution to analyze the merits offered by all three. My argument is this essay is that of all three approaches, radical feminism is the most preferable approach to prostitution because I believe that the women who engage in this practice do not engage out of free will, but are forced to do so being victims of oppression. To clarify this argument, I will start by briefly discussing the theme of both the liberal and Marxist approaches first and then I will scrutinize my preferred approach at length to prove why it is better. I will also include one objection to my position on this subject. According to the liberal approach as discussed by Jaggar, considering the practice of prostitution illegal or offensive is both a conservative and objectionable ideology. Proponents of this approach argue that prostitution should be decriminalized because taking legal measures against it would be a clear violation of thousands of women’s rights who engage in this practice by full consent. They also claim that any psychological or emotional disadvantages brought by offering sexual services are dwarfed by many benefits in the form of financial assistance ensured by this activity to women. Such liberals consider the defenders of radical feminism arrogant and manipulative who in the name of defending women’s rights actually work to make them more disadvantaged. The liberal approach disapproves equating prostitution to sexual abuse of women. This thought is based on the belief that prostitution is not public but private immorality due to which it cannot be considered a concern of criminal law enforcement agencies. Criminal law should only be concerned with the sources of public immorality like pornography which is a far cry from prostitution. This approach stresses that opponents should realize the staggering difference between prostitution which is harmless and pornography which can be harmful and not attempt to mingle them. Willingly or consciously selling sexual services is not the kind of activity which infringes on public order and decency, so there should be no penalties for people who are involved in this practice on any level (Jaggar, 1980, pp. 349-50). The Marxist approach is not as simplistic as the liberal approach and has more depth to it. This approach draws conclusions about prostitution after analyzing myriad effects produced by it on the society as the social context of any activity is considered critically important here. Marxists agree that p rostitution translates into selling sexual services, but they also argue that this activity resembles marriage a lot in which a woman exchanges same services which are exchange in prostitution in return for financial support ensured by her husband. In the marriage, a man is willing to provide for the woman on the condition that she acknowledges and fulfills his sexual needs. Same is the case in prostitution in which a woman consents to offer sexual services in exchange for money from the men she attends. However, the difference is that a marriage is a legalized relationship approved by the social norms, while prostitution is not legalized and the women who are a part of this are called many derogatory names by the society. It is claimed by

Investment analysis Essay Example | Topics and Well Written Essays - 1000 words

Investment analysis - Essay Example Ltd (GNC), MACQ GROUP FPO (MQG), Perpetual Limited (PPT), Cochlear Limited (COH), Woodside Petroleum Limited (WPL) and Rio Tinto Ltd. (RIO). These stocks are picked from the index on random basis in order to avoid any biasness. The following part analyzes the excess stock returns of every company on individual basis. Risk & Return Analysis As far as the risk and returns for 6 stocks as well as the market is concerned, it can be affirmed that the market return remained negative in the past two 26 months. The market provided -0.6137 return with the risk of 3.79 which is relatively low. The best return is provided by GNC which is 0.9069 with the risk measure of 7.0546. The lowest performing stock was MQG such that it provided a massive negative return of -2.7928 given the risk level of 7.3839. WPL was found to be the least risky stock with the figure of 6.7976 with the return of -0.7820. COH turned out to be the riskiest stock with the figure of 12.3989 with the negative return of -0.33 44. ... Gain Corp Ltd Regression Statistics Multiple R 0.4970 R Square 0.2470 Adjusted R Square 0.1394 Standard Error 6.5444 Observations 25 Â   Coefficients Standard Error t Stat P-value Intercept 1.2427 1.3432 0.9251 0.3654 EMR 0.7704 0.3732 2.0640 0.0516 SMB -0.8326 0.7121 -1.1693 0.2554 HML 0.9103 0.9036 1.0074 0.3252 If the overall model fit of GNC is taken into consideration, it can be noticed that R-square is quite low i.e. 24.7% which explains that all three factors only explain 24.7% behavior of GNC. The intercept is not significant due to higher p-value which is greater than the 0.05 level of significance. However, if 3FMs are closely looked at only EMR has contributed in predicting the excess return behavior of GNC as its p-value is quite closer to 0.05. The other two factors including SMB and HML are also insignificant due to higher p-values. In other words, the excess stock return behavior of GNC is independent of the SMB and HML but there is slight dependency can be found with respect to EMR. 2. MACQ GROUP FPO Regression Statistics Multiple R 0.7809 R Square 0.6099 Adjusted R Square 0.5542 Standard Error 4.9304 Observations 25 Â   Coefficients Standard Error t Stat P-value Intercept -1.5311 1.0120 -1.5130 0.1452 EMR 1.4996 0.2812 5.3329 0.0000 SMB 1.2077 0.5364 2.2513 0.0352 HML 1.7840 0.6808 2.6206 0.0160 The model of MQG is very strong such that the value of R-square which is 0.6099 reflects that the excess stock returns of MQG are explained by 61% with 3FMs. The intercept is turned out to be insignificant due to higher p-value. However, all the three factors contributed in explaining the behavior of MQG such that all have p-values less than the cut off level of 0.05. The beta of MQG with respect to market is near to 1.5,

Louis Riel Essay Example | Topics and Well Written Essays - 1750 words

Louis Riel - Essay Example At one point, he attempted taking legal studies, but these attempts failed (Thomas 1887, p. 35-67).1 Despite the failed attempts to study religious studies and legal studies, Riel continued to give his opinion on issues of religion and political reforms. When giving his opinions, Riel appeared to be contended with whatever he said, and he never allowed anyone to oppose his opinions. His discussions were done using a strong command of languages. Riel was talented in catching the attention of his listeners through creating a sense of his importance. One notable thing about Riel was his understanding of dangers associated with engaging in physical wars despite his use of violent speeches. Majority of people living in the Red River knew Riel due to his popularity in engaging in matters of politics and religion (Thomas 1887, p. 35-67).1 Louis Riel and the Red River Rebellion In 1869, the Canadian government signed the Canadian Act of 1869, which introduced a provisional government for the colony in the Red River. This move by the Canadian government was not welcome by many settlers of the Red River. Riel was the fast to oppose the government’s move. Using his religious doctrines and political opinions, he challenged his fellow Half-breeds to stand strong and resist the Canadian authorities. The Half-breeds believed that the government’s move aimed at getting properties out of the Half-breeds living in Canada. The rebellion formed by Riel was done through mobilizing a few Half-breeds and instructing government surveyors to stop their work in the Red River (Lewis 2000, par. 1-25).2 After managing to stop the surveyors from carrying out their job, Riel and his group later seized Fort Garry, which held a company for military supplies and rifles. Later, a meeting for all Half-breeds living in Red River was convened, and people in attendance were convinced to adopt a proposed â€Å"bill of rights.† The proposed â€Å"bill of right† had fifteen provisions, which addressed the plight of the 2Half-breeds. When closing the convention, Riel proposed the formation of a provisional government, of which he would be the head. All this time, he was acting as the secretary general to a provisional government that believed to be in power after the inception of the rebellion. At one point, Riel warned people in Canadian authorities against intruding territories within the Red River (Lewis 2000, par. 1-25).2 Once the military operations within the seized Fort Garry came to an end, Riel became the master of the territory for close to six months. Settlers living in the Red River were in full support of Riel’s proposals, but his intentions of creating an independent government with him as the head left many settlers with a lot of questions. Many settlers thought that Riel had a strong will in fighting for the rights proposed in the â€Å"bill of rights† rather than calling for an independent republic. Furthermore, Riel showe d a lot of cruelty when dealing with people who opposed his ideas. He went to the extent of ordering the shooting of such people. At one time, Riel ordered for the shooting of an Orangeman of which it was later discovered that the shooting was motivated by personal differences. The shooting of the Orangeman aroused fellow Orangemen living in Upper Canada. The heightened mood in Upper regions of Canada caused the English government to interfere in the issue (Thomas 1887, p. 35-67).3 The colonial

Compare and contrast of two artworks (art history) Essay

Compare and contrast of two artworks (art history) - Essay Example The general term ‘artwork’ is used in comparing and contrasting since Durer’s work is an engraving and not a painting like Titian’s. Durer, in his depiction of Adam and Eve, is meticulous with balance and proportion in such a way that Adam is almost like Eve’s female counterpart. Both characters have curly hair, and both are nude with covered private parts. Durer’s engraving gives the magical illusion that the characters are somewhat standing out from its dark background (Silver and Smith 49). His work is like a three dimensional image. He uses ink as a medium to darken the background (Silver and Smith 49). His style is what is known as Northern Renaissance in European Art. Like Durer, Titian likes to portray subjects in nude or semi-nude. By contrast, Titian’s Concert Champà ªtre painting is oil on canvas. His love for nature is shown by his vibrant display of the natural colors of an outdoor environment, as opposed to black and white. In effect, his style is more realistic, especially the women’s bodies whose skin texture is quite realistic. His style is considered Italian High Renaissance, Venetian School. The similarities involved are their fondness for the outdoors and how their subjects seem to be interacting with each other in harmony. Also, each of the human subject’s hand is busy holding something. Concert Champà ªtre involves musical instruments, while Adam and Eve shows the biblical ‘forbidden fruit.’ During this time, central Europe had been the ‘seat of religious upheaval,’ which might have played a role in the artist’s choice for a subject. At first glance, there are no traces of writing in Titian’s artwork compared to Durer’s branding, which translates to â€Å"Albrecht Durer of Nuremberg† (Johnson 124). In Concert Champà ªtre, the man carrying a lute and wearing silk looks out of place (Graham-Dixon 251).

BOSCH GmbH- Human Resource Management Essay Example for Free

BOSCH GmbH- Human Resource Management Essay In our work the foreign dispatch process is examined, how far the global requirements on the resource staff are met by Bosch. The measures, Bosch developed for the choice, preparation, moving and reintegration of its employees has been examined and set against the common practice of other enterprises. The work starts with a representation of the enterprise Bosch. The main part is a detailed representation of the measures of Bosch with respect to the four phases of the foreign dispatch. These are judged with the theory from technical literature and compared with the common practice of other enterprises. Subsequently the question is followed whether the expansion plans in the direction of the China require a customization of the staff management. Finally we draw a conclusion whether the measures of Bosch are suitable to fulfill the requirements or must be changed. 2. Bosch2.1 Historical developmentThe enterprise Bosch was set up under the name workshop for precision engineering and electrical engineering in Stuttgart in the year 1886 by the engineer Robert Bosch. The international orientation already started early. In 1898 they founded the first branch office in England (London). One year later they opened a dependance in France (Paris). The first branch office followed in the USA in 1906. The international development has continued until today. In 2003 75% of the manufacturing sites are outside Germany. With daughter and associated companies Bosch is present in more than 50 countries worldwide. Bosch is one of the biggest industrial enterprises in Germany today and is a global player especially in the automobile industry. Bosch has convinced with its innovations since their foundation and has a high position in the market. In 1897 Bosch developed the first low voltage magneto ignition which firstly made the use of internal combustion engines possible. The innovation strength has remained until today; so Bosch was the first component supplier bringing innovations like ESP the anti-lock braking system anti-lock braking system, the navigation system under the names Travelpilot and the electronic stability system on the market. Bosch recognized the significance of its employees for the innovation and market success early, too. In 1906 Bosch introduced the eight hour day when celebrating the delivery of the 100,000 sten magnet igniter. With the delivery of the 500,000 sten igniter they introduced work free Saturday afternoons. 2.2 The Bosch, group todayToday enterprise Bosch consists of the motor vehicle technology, industry technology and use and goods technology. Their core competence and most important unit is still the vehicle technology. This can be proved by regarding the sales volume. The share of this division was 65.4% in the year 2003. The sales development and its foreign share is displayed in graphic 1. Bosch doubled the sales volume within only 10 years, from approx. 16 billion  to 36 billion euros. However, the foreign share of the sales volume increased proportionally faster. From 49% in 1993 it rose up to 71% in 2003. These data underline again the strong international orientation of the company. According to this Bosch has employees all over the world. In 2003 Bosch employed 230,000 people worldwide with a share of 54% outside of Germany. 2.3 The corporate cultureThe idea of the corporate culture is interpreted differently in the literature. Berthel defines corporate culture as follows: Corporate culture is the sum of the moral concepts, carried a business together of the employees norms and behavior patterns this one has taken shape in the course of the time. The philosophy of Robert Bosch stamps the corporate culture since the foundation. So he wrote in 1919: It has always been an unbearable thought to me that someone could inspect one of my products and find it inferior . I have therefore always tried to ensure that only look for work goes out that is superior into all respects . In the year 2001 this culture was strengthened by the new model Be Better Be Bosch and the values were formulated in a written form for the first time. They initiated a modernization project called Be QIK. This model functions as action framework for the after stored aims and strategies:†¢Be QIK, Quality, innovation and Customer oriented†¢Be Better improve against previous years and gain the competitive edge,†¢Be Bosch, committed to our vision, our tradition and of the spirit of a the company and the legacy of our founder Robert Bosch. The enterprise therefore tries to create a global behaviorial framework, which takes over the orientation function, identification function, coordination and integration function and helps to manage the challenges of the future. 3. Foreign dispatch process at Bosch3.1 Aims of the foreign dispatchBy the assignment of highly qualified employees Bosch aims at a compensation of a lack of know-how in the respective host country. Furthermore Bosch wants to rise the cross culturel skills of their executives in order to improve the  cooperation with foreign departments. Additionally it is possible for the ambitious employees to request for a dispatch in order to enhance their motivation. An important aim of foreign dispatches is finally the implementation of a worldwide corporate culture through which the communication and cooperation within the Bosch group is made easier. 3.2 Dispatch formsBosch distinguishes three dispatch forms. The business trip, the delegation as well as the transfer. The business trip with a duration of up to three months serves to establish contacts or also to conclude business on the spot. With the delegation Bosch distinguishes between the dispatch for the fulfillment of a project task or the dispatch in the context of trainee programs. The expatriate is abroad for a duration between three months and a year. If it is necessary to cover a lack of manpower a transfer is carried out. In this case the duration of the stay abroad is between one and five years. Bosch averagely dispatches their employees for three years. 3.3 Foreign dispatch processA carefully structured dispatch process is very important for Bosch to ensure the success of the foreign dispatch. To this, at first the occupation order is prepared which contains the necessary qualifications of the employee with regard to the vacant job. The choice of a suitable candidate, the dispatch conversation and the information journey to the possible country are the next steps of the process. After this journey the employee finally decides whether he accepts the position abroad. If he agrees, the employee is prepared comprehensively for the stay abroad. Then the moving to the foreign country takes place. After the job completion the employee is reintegrated. The individual phases of the foreign dispatch process are explained in the following more precisely. 3.3.1 Choice3.3.1.1 Theoretical bases and enterprise practiceThe best liability for a success of foreign dispatch can still be seen in the right choice of the employees to be sent. This should include technical criteria, behavior-related criteria, intercultural environment-related criteria as  well as personal criteria. When choosing a suitable dispatch candidate enterprises often orientate at technical performances. However, empirical examinations show, that competences or-related behavior and-related intercultural environment abilities for the cultural customization have a greater influence on the success of the foreign activity. Other surveys from the 1990s confirm that individual performance features are in the foreground at the choice. In addition, they show that the family is hardly co-included in the decision. An interview under Expatriates points, that the well-being plays the family an important role for the professional success. 3.3.1.2 Choice at BoschBosch has recognized the importance of extra-technical criteria for the choice of a suitable dispatch candidate. Besides the career potential, which are investigated by the employee development instruments (see chapter 2.2), features like team and communication ability or representation of the Bosch culture are co-included in the decision. The latter has a great importance for the support of the implementation of a worldwide corporate culture, one of the aims of the foreign dispatch. 3.3.2 Preparation3.3.2.1 Theoretical bases and enterprise practiceInstitutes specialized in further education and intercultural management distinguish between a country specific and country general as well as intellectual and experience obtained preparation. The respective confrontation of these preparation methods shows the following classifications:†¢Intellectual country specific preparationPrimarily general information about the host country is mediated and language courses carried out here. Culture games are, such as the cultural assimilator training. †¢Experience-related country specific preparationThe political, economic and socio-cultural conditions of the host country shall be given to the expatriate a better understanding. With the help of case studies and role plays as well as information journeys the expatriates are prepared for country and culture specifics. †¢Intellectual preparationThe cultural self awareness model plays an important  role in this preparation class. It assumes that it is important to remind the participant of his own stereotyped and behaviors in order to develop a sensibility for the foreign maybe strange looking cultural aspects. †¢Experience-related country general preparationThis preparation method which shall enlarge the intercultural competence of the expatriates (on The job by Outdoor training, intercultural simulation games) consists of the cooperation on international teams as well as of an intercultural action training. Source of the success of foreign dispatches is the degree to which an expat is able to establish contacts and manages to overcome culture barriers and to find the way in the strange culture. The chief attention of the preparation in German and American companies lies in the technical education, the execution of a language training as well as the arrangement of general country information, though. An experience-related preparation seldom takes place. The external execution of the preparation measures is in general preferred opposite the internal one. The family moreover is only seldomly included in the preparations although family problems belong to the most frequent reasons for the failure of foreign dispatches. After a study of the auditing company PriceWaterhouseCoopers 40% of all Expatriates return home ahead of schedule. 96% of these on impulses of the family which often doesnt cope with the surroundings. The final conclusion is that the size of the preparation is very small in the entrepreneurial practice. 3.3.2.2 Preparation at BoschBosch practices comprehensive preparations for both its employees and their families to ensure the success of their foreign dispatch. At the beginning of the preparation Bosch offers a information journey which is designed for employees who go abroad for longer than 12 months. Before the definite decision, Bosch gives its employees the  opportunity to go to the host country with the companion of their partner. The stay lasts for two to three days, within Europe outside Europes approximately one week. By this look and sea trip the employee and his companions can get a better idea of the future place of residence. That shall prevent them from forming unrealistic expectations. If the employee decides to accept the job offered abroad, the real preparation starts. The central HR department is responsible for the execution of the preparation transfers (ZM2). It builds a preparation plan with measures which are coordinated with the needs of the respective employee. The aim of the preparation with Bosch is the arrangement of intercultural competence. This consists of country specific knowledge, linguistic proficiency as well as cultural sensibility of the three elements together. Country specific knowledgeThe arrangement of country specific knowledge contains information about the framework conditions of the host country. Formalities which are connected with a stay abroad are given to the Expatriates and their companions traveling along in a so-called Bosch foreign preparation seminar. So-called mentors, employees already returned home, convey information e.g. to the contract of employment or for tax regulations. By the use of mentors Bosch guarantees that experiences collected abroad are passed on and therefore used for new dispatches effectively. Linguistic proficiencyThe knowledge of the respective national language is prerequisite for a dispatch, because it is very important for an integration in private and in working life. Bosch employees have to learn the foreign language until they reach a level that enables them to come along in working life without any problems. If they want to learn more, they also have the possibility of attaining comprehensive knowledge. The family is tied to ensure that it can find the way in daily life. The language education takes place externally and Bosch takes on the costs both for the employee and for the family. The company attaches importance to the fact that the education starts early so that the required knowledge is reached before the dispatch. Cultural sensibilityThe cultural sensibility of the employees shall be promoted by two measures: the intercultural preparation training as well as the intercultural management training. The intercultural preparation training has the aim of sensitizing the employee to the think and behavior patterns of the host country to make the integration into the strange cultural environment easier for him. If the training is carried out internally, so-called country teams are responsible for it. These teams consist of employees who have made experiences in the respective host country or even are from this country themselves. This five-day intercultural preparation training is offered both for the employee and for the family since this is confronted with the same integration or understanding difficulties concerning the strange culture. This has particularly to be taken into account when thinking of the growing importance of multicultural cooperations, e.g. in the context of joint ventures or international project work. 3.3.3 MovingAt Bosch receives the Expatriate supports for the carrying out of the necessary formalities by the so-called Bosch foreign preparation seminar. When the employee finally starts his stay abroad he usually feels like on holiday. Everything is new to him and he is fascinated by his new task at the company and the new country itself. But this positive feeling often changes after a few months when the first serious problems occur. He feels helpless because he can not manage the situation in the new surrounding. This is called cultural shock. To keep the cultural shock as low as possible, Bosch looks after his employees during their stay and helps them when problems appear. The cultural shock can never completely prevented especially if the difference between the cultures is very large. Nevertheless Bosch tries to prepare their employees by showing general culture differences so that they can deal with problems easyierly. Furthermore Bosch offers his expatriate an intensive coaching. The employee has a mentor in the native country who is two hierarchical orders higher than himself. They meet at least once a year to talk about problems abroad or about further plans of the employee after his return to germany. In addition, a strengths-/ weaknesses analysis is carried out to be able to comprehend the development of the employee and not lose the summary of the knowledge and abilities. An examination of Schroll-Machl shows that the support of the Expatriates is often insufficient in the practice. Many Expatriates have the impression that their enterprise leaves them alone and it doesnt support at problems. They must manage various difficulties at the same time. Family problems moreover arent taken into account in the context of the support in the practice. However, wife and children are especially confronted with greater customization difficulties than the staff member because they have more frequent contacts to the strange culture. 3.3.4. Reintegration3.3.4.1 Theoretical bases and enterprise practiceAfter the expiry of the delegation period the Expatriate returns back to the parent company. A successful reintegration of the employee is both of high entrepreneurial and financial importance. A negative signal starts out from a failed reintegration for other parent company members. The readiness to accept an offer for a foreign activity sinks. Furthermore the financial dimension of the complete dispatch process including the return has to be taken into account. American studies value the total costs of the foreign assignment of an employee at up to 1 millions $. In connection with this, it is surprising that only few enterprises care for the repatriation of their employees professionally. A KPMG examination from the year 2000 showed that 67% of all interviewed people who were delegated abroad said that there is need for improvement at the reintegration process of their enterprise. This criticism has to be taken  seriously since problems with the reintegration have serious consequences for the Expatriate and the enterprise like e.g. a low work motivation or even the cancellation and the change to another enterprise. According to an examination of Black (1992) the share of the returnees who cancel their job within one year after their return due to integration problems is about 25%. The causes of these reintegration diffic ulties are multilayered. You can subdivide them into operational and private difficulties. Operational levelThe search for a suitable position often turns out to be difficult since the HR departments can assess hardly the qualification development of the returnee during his stay abroad. In addition returnees often have exaggerated expectations and therefore are disappointed of the offered job in their home company. They often have the impression that their new skills especially about the country they spent a lot of time in are not appreciated. A study of Wirth from the year 1992 has shown that merely 30% of all enterprises evaluate the experiences of its employees after a stay abroad. Another aspect of the reintegration is the cessation of foreign raises and other privileges. Private LevelProblems frequently appear also in the private area of the Expatriates. During their stay abroad the often only keep the positive aspects of their life in Germany in mind, the negative everyday problems appear only after the return and the first euphoria. The culture of ones own seems alienated and it comes to the double cultural shock. Particularly the children have to suffer from the new surroundings and from the change since they have accepted the strange culture more strongly, had to leave friends and dont cope with the German school system any more. For the expatriates and their partners it is difficult to abstain from grown fond privileges like e.g. chauffeur, domestics for themselves or a swimming pool. 3.3.4.2 Reintegration with BoschAs a company with strong international orientation Bosch has recognized the meaning of a successful reintegration of returnees and supports the reintegration of its employees with numerous measures at an operational and private level to put a positive and encouraging signal for future dispatches. 3.3.4.2.1 Measures of the operational reintegrationBosch offers a very comprehensive and strategic personnel policy which takes into account the personal ambitions of the dispatched employees and the future need for highly qualified managers. This prevents Bosch from the problem frequently appearing that no adequate place can be offered to the returnee. Due to its size Bosch is moreover able to offer alternatives in the case of an abrupted dispatch process, like e.g. early return or dissatisfaction with the return position. As already explained different studies have shown that exaggerated experiences on the part of the returnees is the main reason for dissatisfaction with the position after the reintegration. To counteract this, Bosch regularly looks after the expatriate by a hierarchy higher mentor of the parent company. By this he keeps informed about all important developments in the company and furthermore he has contact person for career questions. Due to this permanent communication Bosch is able to get an exact idea about the situation and processes in the foreign business. Another important aspect which fundamentally contributes to the satisfaction of the returning employee is the appreciation and the use of the abroad acquired knowledge. Bosch evaluates the foreign experiences of its expatriates very comprehensively and endeavours suggestions for improvement. Furthermore the HR department tries to find a position in which the returnee can use his new won abilities optimally. This could be e.g. a position in the sales department of the region in which the expatriate was active. Furthermore the returnees have the opportunity to study further in order to work as an expert for the country they stayed in and prepare other employees for future dispatches. The BeQIK corporate culture, introduced in 2001, plays an important role for a successful reintegration. Since all subsidiary firm shall work according to the given behavioral framework, the cultural distance turns out a little bit smaller between host country and native country. Since the practical putting into action of the behavior guidelines is always subject to cultural influences, the degree of the relief should be assessed rather carefully. 3.3.4.2.2 Measures of the private reintegrationTo make the reintegration  easier for the returning expatriate and his family, Bosch offers comprehensive help. They support their employees when they search for an apartment and takes on arising extra tuition costs for the children to make the integration into the German school system easier. Furthermore other Bosch employees who returned from stays abroad in the past can give advice in so called returnee seminars where other persons affected talk about its experiences. 4. Asia, challenge and chanceRapidly arising markets in the Far East and Bosch takes part This statement of Bosch Bohr, the chairman of the area of motor vehicle technology, shows the meaning of company leaders, which will be attached to Asian and especially to the Chinese market. After a turnover growth obtained already 2003 in China of over 20%, Bosch wants to improve his presence further in the empire of the middle. In the following sections will be analysed, which changes or requirements to the Bosch foreign dispatch will bring the future in the Asian market. 4.2 requirements on German executives in China4.2.1 The intercultural difficultiesThe clashing of different cultures, values and particularly the different styles of management and philosophies leads very frequently to difficulties in the subsidiary firms. To notice which one is the most frequent and greatest problem that the Chinese executives have in the cooperation with German executives and vice versa, the results of a study from the year 1999 shall be illustrated, which Chinese and German manager were working in German enterprises in China. Among the problems, which the Chinese managers have with the colleges from abroad, the most important are the communication problems, like is described in the chart above. The culture, communication, mutual understanding and language are connected closely with each other belong to this category: due to the different culture and the language barrier no satisfactory communication takes place  and therefore it doesnt come to a mutual understanding. In this connection the bad English knowledge of German managers and their lack of understanding of the Chinese culture will be especially found fault by Chinese colleges. 10% of the mentioning are allotted to problems of the human relations. It disturbs the Chinese executives most, that they are treated differently in comparison with the Expatriates and they dont have much confidence in Chinese colleges. This is the reason in their opinion that it doesnt come to friendships between foreign and Chinese executives who are very welcome on a Chinese. The arrogance and haughtiness of the foreigners are also criticized and the lack of interest in the Chinese population. The professional requirements are high: inside the Chinese employees are hungrily to learn the new specialized knowledge of the foreign executive and they notice very fast, weather the German executives arent not ready or capable in the expected scale, to give this knowledge further. In connection with this, it is criticized that German executives prefer to work alone, they arent cooperative. In the Chinese working world one comes upon, however, the Explanation the Help and Assistance to each other. By the cessation of the in the past (before the open-door policy of China) usual lifelong job in the same enterprise and the fact that one can be discontinued because of a bad performance a considerable pressure is triggered to do well the work and this can have discouraging influence on the employees. There is the high burden of work which lets few leisure time as well as time for the own family. General Manager have variously and very far scattered breadth of the answers without the number of the mentioning being different from each other fundamentally on the part of the foreign ones. Any problem is emerging as  dominate. Problems are most frequently mentioned are in the areas of communication, labour organization, qualification and management. The general managers from abroad find some problems with their Chinese executives not only in the area of the communication. For example they dont seem to be able to solve their problems with a better communication. However the understanding stands for the Chinese executives, at first place and the lack of communication is also becoming responsibly for many difficulties in the company. 4.2.2 Cultural distinction and integrationThe culture isnt reflected only in politics and in the everyday life, (i.e. in the social and consume behaviour) but it also influences the business methods, the management behaviour and the relations of employees and employers. In the following section are discussed certain general Asian culture features and their implications for the staff management . Group identity versus individual identityTian xia Wei gong: Everything serves the community under the sky. So there is a Chinese proverb from the old days which has validity today certainly too. The individual never was in the foreground but always, the community within the particular represents a tiny member. This specific and deeply rooted feature has important implications for the staff management: So the individual recognition (punishment) should be carried out in private, the teams recognition should be carried out barefaced. Conflict avoidanceMost cultures of Asia avoid systematically the open conflict holding. The avoidance of open conflicts is in a close connection with the Confucianism. Straight criticism and open contradiction are accompanied by the danger to lose face and fall to the social trifle. Keeping faceMost Asian societies are settled by the principle of the disgrace (the public humiliation) not by the principle of guiltiness (feeling of individual responsibility, conscience). The concept of the saving face is comprehensively valid, characterizes every human relation and is very important for the staff management since it forbids the public humiliation of employees. Respect opposite to higher-ranking and oldRespect, restraint and modesty are part of the etiquette in the Asian culture room generally. Hierarchies have a more important role (often according to old, rank and sex) than in Germany. The formal authority isnt called into question; this is part of the harmony commandment. However, one shouldnt put the Asian respect before the authority absolutely. A bad supervisor is also criticized in Asia and will be corrected though indirect: by pressure on third party, anonymous letters, passive behaviour and resistance, which are disguised with excuses or by frequent illness or really irrational behaviours, like panic bouts. The re-registration is frequently encoded. So the western manager must learn how indirect signals of the discontent should be decoded or interpreted. The respect of the age is one of the basic concepts of a Confucian intellect. The Age doesnt make only wise but gives a natural authority. Seniority and hierarchy thinking still established tightly in the heads of the Chinese managers. Foreign companies are smitten with the distinguishing between respect of certain hierarchies and the necessity of the support managers who render the corresponding service but dont have the right age yet. In order to be accepted a younger manager must be more competent than an old one. GuanxiGuanxi has to be translated by the following expression personal relations and connections. It plays a large role in China in all areas of the life; it works as sesame-open you when required because clear and codified jurisdiction doesnt have any tradition, relations are solution key  for all problems. Western Managers should pay more attention to Guanxi if they want to succeed in china. 4.2.3 Recruitment and motivation of local workersThe recruitment of highly qualified staff and the tie of won workers with the enterprise are a big problem area with which many foreign businesses are confronted in China. These phenomena shall be represented here only briefly since a detailed description would blow up the frame of this work. Recruitment of local workersThe absence of qualified personal is responsibly for the high fluctuation. More and more enterprises try to find Chinese university graduates who are trained in Germany for the business in china. Motivation of local workersIf one has found local executives, one must be able to keep it because the high fluctuation is connected to high costs. Different instruments can contribute to soothe or to overcome the staff bottleneck. These are e.g. the image-building (charitable events), the training (further education possibilities have a high place value) as well as a solid and long-term career promotion strategy. For young highly qualified stuff, a good salary and promotion chances are decisive for staying in the enterprise. 4.3 Optimization/customization of the dispatch process for/to ChinaIf one carries now out an optimization of the foreign dispatch process with Bosch to the employee-employer relationships in China against the background of the executed Asian culture features and criticisms of the Chinese Manager of their German colleagues and colleagues, then the following implications are the result:As a rule, an intercultural preparation takes place. No reason is seen for preparations for the Chinese executives in most enterprises. It will hold the assumption that the Chinese executives must adapt to the western behaviour patterns and methods of working. A common intercultural training is, however, absolutely essential in China for the following reasons:The great difficulties which arise from the lack of mutual understanding, are in a close connection with the knowledge about the respecting other culture, the action sample and moral concepts, but also its enterprise philosophies and styles of management. An intercultural seminar can make considerably, behind certain behaviour which explanations and which roots suit to an executive. It doesnt prevent the appearance of problems but it offers to possibilities of reacting specifically and developing common action strategies. Furthermore a Chinese executive can for example be made familiar with the German culture as follows: by consignments to the German parent company, international stays, participation in international management courses of Chinese universities or in business Schools. Also for partner and children problems arise in the context of a longer stay abroad. Acceptable solutions must therefore be found also for the family. It is often impossible just in the pacific space to solve the language problems satisfactorily what a far-reaching isolation of the marriage partner and the children can cause with negative family consequences. Therefore the language standard should correspond to that one of the Expatriate which enjoys an education on the standard of the easy communication in the work everyday life. Despite good preparations for marriage partner and if necessary children problems often arise of the cultural integration and problems at school. For the better integration contacts to partners of other Expatriates should be organized. The possibility of working abroad is very important for the partner who accompanies the Expatriate abroad. An intensive cooperation with other enterprises on the spot would be necessary to realize the professional way of expatriates wife in China. If no place can be found, the possibility  should be offered for a further training for the meaningful use of the timeout such as a master course of studies. 4.4 Bosch measures for ChinaAll preparatory training is evacuated to the IFIM, the institute for intercultural management in Bad Honnef, since Bosch internal country speakers are specialized in European countries till now. The information journey which shall convey an impression to the Expatriate over its potential future place of work can be extended by max. two days. Another prolongation isnt granted since the employees/inside activities are used at home and every longer stay also more costs for Bosch meant for hers. The language education is carried out in a 5-week language course at the national language institute NRW in Bochum for which the future Expatriate is put by its work activity completely freely. In the 2 annual cycle the personnel officer the ZM2 accompanies a potential Expatriate on an information journey and this one checks life and employee-employer relationships on the spot. Although Bosch mediates e.g. alone for the partner, however give up many arrangements, not at the job search because of the language requirements. As a rule, Bosch can arrange a job for 5% of the partners. To subsume it, this yields no big changes in the dispatch process especially for China. Professional external help is used regarding the training, one otherwise orientates himself at the worldwide valid dispatch process. 5. ConclusionThe Bosch group is a worldwide active enterprise that on the international markets, special it would like to be present on the Asian market in future. This strategy makes high demands on the staff since intercultural understanding is increasingly important besides technical qualities. International employee use represents a central instrument of the staff development. According to the high importance the dispatch process is organized very professionally by Bosch in all four phases (choice,  preparation, moving, and repatriation). This enormous effort beats itself in very low withdrawal rate, these are only 1-2 % in Bosch and lie under the reference values of other enterprises thus considerably. A possible disadvantage of the time intensive preparatory phase which lasts for at least 10 weeks is the lack of flexibility. Short-term manpower requirements due to problems, like e.g. demolition of a stay abroad or illness of a manager cannot be covered with the usual staff practice in Bosch. The preparation measures of Bosch seem very well suitable also for the dispatch to China, a stronger focus on the language education of the family and the social should be put as well as professional integration of the partner. In order to make an improved cooperation possible of the Expatriates on the spot, a common intercultural training is advisable with the Chinese colleagues. Bibliography Bosch (2004A:) The Objectives and Principles of Employee Development, order enterprise booklet at at all Boschs personnel departments as well as Central division employee development and executives (ZM3). Bosch (2004 B): Bosch Australia regional corner clays of The Bosch Group orders: www.bosch.com.au/downloads/Home/RBAU.pdf (12.04.2004). Bosch (2003A): Business report 2003, order:www.bosch.com/de/download/GB2003_DE.pdf (11.04.2004). Bosch (2003B): Bosch today, order on:www.bosch.com/de/download/Boschheute2003_DE.pdf (10.04.2004). Bosch (2003/2004 ): Worldwide responsibility environmental report 2003/2004 ,order: www.bosch.com/de/download/UWB_de.pdf (01.05.2004.)Kuan, Y.-C./Hà ¤ring-Kuan, P. (2001): Journey guest in China, 1st edition, Dormagen. Nickut, J. (2003:) Subject and leadership potential recognize and systematicpromotes to order under : www.mwteam.de/products/Perspek/archives/01-2003/interview HrNickut-RobertBosch.pdf (01.05.2004). Nickut, J./Loose, H., (2000): A step to the global player international choice- AC of Robert Bosch GmbH . In: Staff, exercise book 7/2000, S.360, 363. Redding, dear/Ng, M. (1982): The Role of Face in The Organizational Perceptions of Chinese manager, in: Organization study, 3rd year, no. 3, S.201-219. Welge, K.-M./Holtbrà ¼gge, D. (2003): International management, 3rd edition, Stuttgart. List of the Internet sources:http://www.boschrexroth.com/corporate/de/jobs_und_karriere/personalpolitik/index.jsp (14.05.2004). http://www.bosch-career.de/de/company/aims.htm (14.05.2004). http://www.relojournal.com/nov2000/kpmgsurvey.htm (13.05.2004)http://www.workforce.com/section/09/23/26/42/index.html (13.05.2004)

Orpheus and Eurydice Essay Example for Free

Orpheus and Eurydice Essay The Greek myth says: in creativity you will succeed, only if you will be given immense experience of depth (to the experience, admitting Greeks necessary for creation; to experience, in which story experiences his immensity) for the sake of him. As for me, Depth does not concede itself, appearing face to face; she is opened, only hiding herself in product. The basic, relentless, answer. But the myth specifies as well that Orpheus it is not fated to obey this last law, and certainly, turning around to Eurydice , Orpheus destroys it and then collapses, and Eurydice again addresses in a shadow; under his sight the essence of night is opened in the insignificance. So it betrays also Eurydice, and night. But also not having turned back, it too will not avoid treachery, having showed incorrectness in relation to immense and reckless force of the impulse which demands Eurydice not in its day time true and ordinary charm, and in night shadows, in its remoteness, with the closed body and the sealed person; to force which tries to behold Eurydice, not when she is seen, but when is hidden, and not in affinity of an ordinary life but as the externality of that excludes any affinity, thirsts to not recover her, but to possess in it Ð ²Ã ¶Ã ¸Ã ²Ã µ completeness of its death. Only behind it also has gone down in Ð ¿Ã'€Ð µÃ ¸Ã' Ã ¿Ã ¾Ã ´Ã ½Ã'ŽÃ'Ž. All glory of his creations, all authority of his art, and desire of a happy life in fine clearness of day are brought in a victim to the unique care: to make out in night that at night hides, other night, Ã' Ã ²Ã »Ã' Ã µÃ ¼Ã ¾Ã µ concealment. Indefinitely problematic impulse condemned on day as unjustified madness or as a temptation by excessiveness. For day visit to the hell, having rummaged to depths, he has already an excess. And Orpheus inevitably neglects the law prohibiting turning back as this law is broken by him with a first step to an empire of shadows. From here there is a presentiment, which actually Orpheus all time has been inverted to Eurydice; to untouch touched in absence of a shadow, at that shaded presence which does not hide its absence, was presence of its infinite absence. Not having looked on it, it would not carry away her to itself(himself), and, undoubtedly, she not here, and it is absent in this sight, not less dead, rather than she, dead not serene death of the world which rest, the silence and the end, but that other death, which is endlessly, experience of absence of the end. Condemning invention Orpheus, he reproaches with obvious impatience. And mistake Orpheus, similarly, in the desire inducing it to see Eurydice to possess her whereas it can sing of her only. I consider that the fact that Orpheus says only in the song, attitudes with Eurydice is possible for him only in a hymn, he finds a life and true only after a verse and a verse, and Eurydice represents not that other as this magic dependence paying it outside of singing in a shadow, letting it to be free, alive, executed to authority only in the space proportional Orpheus. Yes I have noticed, Orpheus has authority above itself. Orpheus is guilty of impatience. His mistake is that he is going to exhaust infinity that believes a limit boundless, cannot support an impulse of own error endlessly. Impatience a mistake of the one, who wishes to avoid absence of time, patience dodge, attempt to subordinate this absence, transforming it in certain other, differently measured time. But the true patience does not exclude impatience to which it is intimately connected; it is gained and is indefinite continuouse impatience. Impatience of Orpheus, so, as well a due impulse: in the beginning of that becomes his passion, his highest patience, his infinite stay in death. Orpheus, not having obeyed the law, having looked on Eurydice, has only obeyed deep requirements as if the inspired impulse has captivated in the hell not clear shadow, is not realized has deduced her back in a wide daylight. To look on Eurydice, not caring about a song, in impatience and recklessness of desire overlooking the law, here is such inspiration. Whether it means, what the inspiration transforms beauty of night into unreality of emptiness, pays Eurydice in a shadow, and Orpheus in something indefinitely dead? Whether it means, what the inspiration is therefore that problematic moment when the essence of night becomes insignificant and welcoming affinity of the first night a deceptive trap of night other? We have a presentiment in inspiration only of his failure, we distinguish only fury not knowing to a way. But if the inspiration announces, that Orpheus has failed and Eurydice is lost for him again, announces insignificance and emptiness of night. The inspired and forbidden sight dooms Orpheus to loss everything not only, not only day time gravity, but also essence of night obviously and inevitably. The inspiration promises Orpheus destruction, promises to certitude, not promising instead of success to product, as well as not asserting in neither ideal triumph Orpheus, nor revival Eurydice. The story in the same degree is compromised with inspiration in what Orpheus falls under his threat. During this instant it reaches in the doubtfulness of a limit. That is why so frequently and with such force it also resists to that inspires it. The light of Light, the more actively hatred of Darkness is brighter. Sight Orpheus is his final gift to product, gift in which it from him refuses in which it sacrifices it, going to an immense impulse of desire to sources, and in which is not realized goes besides to the story, to sources of the story. And for Orpheus all grows in certitude of defeat, leaving in exchange only doubtfulness whether existed indeed something? Before the most doubtless masterpiece, whose beginning blinds shine and confidence, we, nevertheless, collide with something growing product suddenly again becomes hidden, it is not present and never here was. This sudden eclipse the remote memoirs on sight Orpheus, nostalgic return to doubtfulness of a source. So, all is staked, when dare at a sight. In this decision and coming up to sources the force of a sight untying essence of night, the removing care interrupting continuous, it opening, an instant of desire, carelessness and authority. The inspiration is connected by sight Orpheus to desire. Reading this myth, by the way, I thought not just about tragedy but also about their internal love. Not paying attention to his awful mistake I can see that he is a real hero. It is so impressive that he could make this for love to his princess of his heart without considering the risk. There is no constant things in the world but just one eternal – love of two people.

Literature Review on Theories of Performance Appraisal

Literature Review on Theories of Performance Appraisal Introduction: Performance appraisal means to evaluate the performance of employees that they are performing their jobs up to the standard of the organizations or not. To evaluate the performance of employees it is very important to establish a proper performance appraisal system in the organization and to give the training to the managers of the organization to appraise the performance of employees correctly. This is a broad topic for research and many researchers have done their researches on performance appraisal to improve the performance appraisal system of organization. In some organizations management has implemented poor system of appraisal in these articles authors have discussed that the have found the negative attitude of employees towards performance appraisal. The main purpose of this project was to explore the appraisal system in work place and identifying the importance of appraise and appraiser role to form a positive and effective system. In these articles they have worked on to gi ve the knowledge to healthcare professionals about difficulties of implanting an appraisal system, including the lack of guidelines on skills and knowledge required. Researchers have used DEA data envelope analysis as a fair evaluating and sorting tool to support appraisal system. This study supports the ideas that rating formats need reexamination with a focus on computer based models as an alternative to traditional rating methods. Another method has already been used (AHP) analytic hierarchy process to evaluate the performance of employees based on the criteria: . Quantity/quality of the work, planning/organization, initiative/commitment, teamwork/cooperation, communication and external factors. All these criteria have been divided into three sub criteria to evaluate the employees. On performance appraisal researchers have done work on different areas but there is no work has been done on that which performance appraisal tools are more useful for evaluating the performance of employees. I want to do my research on methods of performance appraisal that which methods are more useful and give best result to evaluate the performance of the employees. Literature review: T. R. Manoharan (2002) has written In this article authors have discussed that they have noticed that in many organizations appraisal systems are: (a) not relevant to organizational objectives, (b) subject to personal bias, and (c) are often influenced more heavily by personality than by performance. To eliminate these negative things there is a attempt with a computer based tool called Data Envelopment Analysis (DEA) which is used in the working place to evaluate the performance of employees. Sample size is 23 employees. A DEA study provides the following four properties (Paradi, Smith Schaffnit-Chatterjee 2002). A piecewise linear empirical envelopment surface to represent the best practice frontier, consisting of units which exhibit the highest attainable outputs in relation to all other DMUà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s in the population, for their given level of inputs An efficiency metric to represent the maximal performance measure for each DMU(Decision Making Units) measured by its distance to the frontier Specific targets or efficient projections onto the frontier for each inefficient DMU An efficient reference set or peer group for each DMU defined by the efficient units closest to the DMU Here regression analysis is used and correlation has been checked in between these factors of DEA data set: Job knowledge, customer relation, work habit, interpersonal relations, quality and quantity. Through this analysis they have measured the efficiency and productivity of each employee. Rafikul Islam(July 8-10, 2005) has discussed In this article scholars have discussed that to evaluate the performance of organization that it is meeting its goals or not, it is important to evaluate the performance of employees of the organization and for this evaluation effective performance appraisal system should be maintained. They have mentioned two main objectives of this study first is to give rewards to those employees who have performed good in achieving organizational goals and second is to identify those objectives which are not met and make an action plan to ensure that they will achieved in future. In this paper AHP (analytic hierarchy process) to evaluate employee performance. The criteria is used for appraisal is: quantity/quality of the work, planning/organization, initiative/commitment, teamwork/cooperation, communication and external factors. Their sample size is 294 employees. There are many advantages of using AHP i.e AHP can compare two decision elements at a time, it is easy and simple to use, it can easily accommodate multiple decision makers to solve any specific problem. AHP can easily accommodate multiple decision makers to solve a particular problem AHP compares two decision elements (criteria/alternatives) at a time. AHP is simple and easy to apply. Graeme Redshaw (2008) has written in this article is about to improve the performance appraisal system of nurses in organization. Author distributed questionnaire to 8 nurses to know about the performance appraisal system of the organization. 7 nurses were nervous before the appraisal and 1 was confident after the appraisal all nurses were agreed with the outcomes of appraisal. If the successful appraisal system is established so there will be clear aims and objectives, and will be able to implement fairly. Proper training will be provided to the managers to appraise the staff correctly. Diane Shaffer(May 11, 2009) has written in his article writer has discussed that motivation and performance appraisal are interrelated. Motivation is dependent on performance management. Employees who are motivated and happy with their jobs want to stay connected with the company for a long time. Many organizations have not implemented correct performance appraisal system to evaluate the performance of employees. Author has discussed here that they should implement a successful appraisal method/system and also give reward to employees who perform good in the organization. Through this practice employee become motivated towards their jobs and improve their performance and performance of organization as a whole will also improve. Almuth McDowall (2009)has discussed in his article that due to the high level of competition training and development has become very important. Ità ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s a era of globalization so it is playing a key role for the organization to get competitive advantage. While selection of activities including coaching, 360 degree appraisal and development centers (DCs) are become linked to development. In this article 360 degree appraisal has been discussed that it is very important to give the feedback to the employees about their performances. Positive feedback motivates the employees and they become more willing to work for further development programs. The authors examine different development activities with the aim being to provide a framework with which to assess each oneà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢s effectiveness. They compare the processes incorporating a range of significant factors and highlight several important implications that arise for any aim to m eet organizations. Donald L. Caruth (2009)has discussed that the purpose of this paper is to demonstrate the need for and propose a more aligned and integrated standard for performance evaluation to enhance effective strategic control. The paper reviews the various issues creating discontent with the performance appraisal systems within many organizations and demonstrates how these problems inhibit successful strategic control. It attempts to cogently incorporate the performance appraisal characteristics needed for the exercise to function as a critical organizational control metric and a useful feedback mechanism for strategic management of the firm. The paper finds that, whereas performance evaluation has received reasonably robust examination in the human resources literature, explicit guidance toward the integration with strategic control is inadequate. Without consistent alignment between these functions, however, performance appraisal becomes an exercise in futility instead of a vital control mea surement, often resulting in not only personnel dissatisfaction, but also, more importantly, an impediment to systematic strategy implementation. H.C. Shiva Prasad(2010) in this research paper authers have done work to dheck the performance of indian software professionals (SPs) Data were collected from 441 software and senior software engineers from eight Indian software firms. The team leaders assessed the performance of software and senior software engineers on 16 items. The exploratory and confirmatory factor analyses of scores on 16 items of the instrument suggest six dimensions of performance. They are work-efficiency, personal resourcefulness, inter- and intra-personal sensitivity, productivity orientation, timeliness, and business intelligence. The dimensions have reliability and high convergent validity. SPs having more years of experience, higher need for achievement, and higher need for social power are high performers. Human resource managers can evaluate the performance of SPs holistically on six dimensions for training, reward administration, job rotation, and promotion decisions.

Daily Athenian life :: essays research papers fc

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   â€Å"Famed for its literature, poetry, drama, theatre, schools, buildings, government, and intellectual superiority you have no doubt that your polis, Athens, is clearly the shining star of all Greek city-states.†(Daily life in ancient Greece) Athens was a mighty city-state of Greece. Even though it was a very intellectual and powerful city-state, it did not mean that it was necessarily a good city. Athens was the cause of the Peloponnesian War. It deceived the other city-states by making them send money to Athens, so Athens could build a powerful army to protect Greece from the Persians. Athens started to use that money on the city of Athens. Eventually the citizens of Athens did not have to pay taxes. The other city-states got angry, thus beginning the Peloponnesian war. The war lasted about 30 years, starting from 461-406 BC.   Ã‚  Ã‚  Ã‚  Ã‚   An aristocrat named Cleisthenes, who was trying to gain more power, invented a form of government called democracy. Democracy was used in Athens. Athens was lead by a great statesman named Pericles. He died during the war because of disease. Many people died of the same disease. After the war, Sparta set up a government of thirty tyrants. Two of the tyrants were students of the renowned philosopher, Socrates. That stirred up some controversy later with Socrates and the Athenian aristocrats. A year later the democratic form of government was restored, and the Athenian government went back to normal. Men were prominent figures of government. Women were thought to be foolish and irrational, which we all know is not true. â€Å"Men, in the Greek view, were rational, thinking, stable, normal creatures, while women were irrational, hysterical, and dangerous.†(History for kids) Women for that reason were not given political rights. Athens had good soil, since it was near the coastline. They also had just enough rainfall, not too much or too little. They grew grain, grapes, olives, legumes, lentils, beans and chickpeas. The Athenians believed in many gods, just like all the other people of Greece. They had 7 seven main gods. The most important of all the gods was Zeus, the king of the gods, who was married to his sister Hera. The gods had humanlike characteristics; they got jealous and would do stupid things just like humans do.

Common Themes of The Client, Dragon, and Beowulf :: comparison compare contrast essays

Common Themes of The Client, Dragon, and Beowulf A woman her late thirties bellowed "My Baby! My Baby!", as her baby carriage rolled towards the bottom of the great hill. Off in a distance, a man of around early thirties heard these desperate calls for help. The man dashed out from his house and immediately followed pursuit of the blue baby carriage. Within one minutes, he safely reclaimed the carriage and the baby girl was safely returned to her mother without harm. This is an example of how the young man is showing traits of heroism, the traits being courage, intelligence, and strength. He was courageous to help return to the young woman the baby carriage, intelligent to act quickly and actually catch up to it, and his strength is shown by his ability to outrun a racing carriage down a deep hill. Different books use different characters to display heroism within their characters. Mark Sway of The Client is a story of a young boy's heroic battle against the Mafia and the FBI. The story of Dirk Pitt of Dragon is a story of how a older man of the nineteen- hundredths can overcome evil. Beowulf of the story Beowulf is an example of how even hundreds of years ago, heroes used the same traits as today. Heroes of every culture of all ages share courage, intelligence and strength. Courage is a prominent feature of all heroes. Within these three books, each character, Mark Sway, Dirk Pitt and Beowulf, display signs of Courage. Mark Sway was a courageous boy at his age of 9 years old. Mark would never quit from continuing with an idea of his if it was for good: "`We can't let them take the body, Reggie. Think about it. If they get away with it, it'll never be found.'"1 What this phrase points out, is that Mark did not want to leave the Mafia men to retrieve the body of the Senator Boyette, for if they got the body, his efforts to keep quiet about the whole situation would seem fruitless. Dirk Pitt used courage in order that he can continue perusing the enemies. Dirk never gives up exposing a plot of death and trickery of another person. Beowulf displays courage by fighting off the Troll, the Troll's mother, and the Dragon. Beowulf would not forfeit a fight with one of those people despite their gruesome

Besides his military abilities, what made Alexander successful? What were the most important consequences of his conquests? :: essays research papers

Alexander was successful because of his willingness and ambition to be the best that he could be as a leader. In the beginning of his success, him and his army were deprived of money so he sought quick and decisive battles to gain money and supplies from the conquered territory. Because of Alexander’s ambition to be on the top, he thought of countless ways to be victories in battle, Alexander â€Å"won a smashing victory in characteristic style: He led a cavalry charge across the river into the teeth of the enemy on the opposite bank, almost losing his life in the process and winning the devotion of his soldiers. The coast of Asia Minor now open, Alexander captured the coastal cities, denying them to the Persian fleet (Craig, 105).†   Ã‚  Ã‚  Ã‚  Ã‚  Another reason what Alexander was so successful was because of his greediness. Craig states that while Alexander was in Tyre, Darius offered him his daughter and his entire empire west of the Euphrates River in exchange for an alliance and an end to the invasion but Alexander wanted the whole empire. So Alexander’s greediness motivated him to create more battles.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander seemed to be a very curious type of person. Alexander was filled with plans for the future, â€Å"for the consolidation and organization of his empire; for geographic exploration; for new cites and roads, and harbors; perhaps even for further conquests in the west (Craig, 107).† As history has shown it, Alexander was one of the greatest generals the world has seen, â€Å"he never lost a battle or failed in a siege, and with a modest army, he conquered a vast empire. He had rare organizational talents, and his plans for creating a multinational empire was the only intelligent way to consolidate his conquests (Craig, 107).† Also, Alexander established many new cities, which these cites promoted commerce and prosperity and introduced Hellenistic civilizations into new areas, as stated in Craig.   Ã‚  Ã‚  Ã‚  Ã‚  Alexander’s most important consequences of his conquests was when he came to Persepolis, the Persian capitol, which held splendid palaces and the royal treasury, â€Å"this bonanza ended his financial troubles and put a vast sum of money into circulation, with economic consequences that lasted for centuries (Craig, 107).† Also, as part of his grand scheme of amalgamation and conquest, â€Å"he married the Bactrian princess Roxane and enrolled thirty thousand young Bactrians to be trained for his army (Craig, 107).

Accounting Study Essay

a. Identify significant tax and nontax issues or concerns that may differ across entity types. b. Provide your recommendation for forming CCS as a C corporation, S corporation, LLC, or partnership. Explain your reasoning for your choice of entity, identify any issues that you may still be concerned about, and suggest recommendations for dealing with the concerns. Chapter 19 Problem 39 (LO2) Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation’s stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases: FMV Tax-Adjusted Basis Inventory $ 20,000 $ 10,000 Building 150,000 100,000 Land 230,000 300,000 Total $400,000 $410,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation’s stock received in the exchange was $300,000. The transaction met the requirements to be tax-deferred under  §351. a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? b. What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation? c. What is Zhang’s tax basis in the stock she receives in the exchange? d. What is the corporation’s tax-adjusted basis in each of the assets received in the exchange? Assume the corporation assumed a mortgage of $500,000 attached to the building and land. e. How much, if any, gain or loss does Zhang recognize on the exchange assuming the revised facts? f. What is Zhang’s tax basis in the stock she receives in the exchange? g.  What is the corporation’s tax-adjusted basis in each of the assets received in the exchange?

Stock Exchange of Thailand

Table of Content | | History of SET| 1| Establishment of SET| 1| Vision & Mission| 1| Regulatory Framework of the Capital Market| 2| Operations| 3| Board of Governors| 3| Management| 4| SET’s Role| 5| Corporate Governance Center| 6| Products and Services| 6| Revenue Structure| 12| Financial Events that Affect SET| 12| SET and the World Stock Exchange| 15| SET and Asian Stock Exchanges| 16| Comparison of SET, SGX and NYSE| 17| Index Composition Comparison between SGX and SET| 18| Stock Index Comparison| 18| Future move of SETConclusion| 2022| Stock Exchange of Thailand History of the Stock Exchange of ThailandThe modern Thai Capital Market was started in 1961 when Thailand implemented its first five-year National Economic and Social Development Plan. It supports the promotion of economic growth and stability as well as develops the Kingdom's standard of living. After that, the Second National Economic and Social Development Plan (1967-1971) proposed to set up an orderly securit ies market in order to gather additional capital to support Thailand's industrialization and economic development. The modern Thai capital market can be divided into two phases, â€Å"The Bangkok Stock Exchange† which was privately owned and â€Å"The Securities Exchange of Thailand†.The BSE finally ceased operations in the early 1970s because of a lack of official government support and a limited investor understanding of the equity market Establishment of the Stock Exchange of Thailand Despite the failure of the BSE, the concept of an orderly security market had attracted a lot of Thai people attention. In 1969, as recommended by the World Bank, the government acquired the services of Professor Sidney M. Robbins from Columbia University to study the development channels of the Thai capital market.In 1972 the Government took a further step in this direction by improving the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings A ffecting Public Safety and Welfare†. The changes were allowed Government to control more over the operations of finance and securities companies. After that, in 1974, â€Å"The Securities Exchange of Thailand† (SET) was enacted allowing the investment to save in the capital market. By 1975, the basic legislative framework was in place and the Securities Exchange of Thailand officially started trading.On January 1, 1991 its name was formally changed to â€Å"The Stock Exchange of Thailand† (SET). Vision Empowering business and investors through our strengths to match the right financial opportunities Mission Clients and Intermediaries â€Å"Expand business issuers and investor base by satisfying their financial needs and strengthening intermediaries for mutual growth and success† Products and Services â€Å"Offer a wide range of attractive products and services to create value and match financial opportunities across different segments of business and inve stors† Operations Operate with flawless execution according to international standards to ensure efficiency, effectiveness, flexibility and global connectivity† People and Culture â€Å"Inspire staff to perform up to their fullest potential and create a corporate culture that aims at achieving excellence in matching the right financial opportunities for business and investors† Regulatory Framework of the Capital Market The Securities and Exchange Act of 1992 (SEA), specified the Securities and Exchange Commission (SEC) as the regulator of the Thai Capital Market.While the SEC oversees the development of the Kingdom's capital market, the Bank of Thailand (BOT) is responsible for the country's money market. Primary Market The SEC looked over a company that wants to issue new securities, an initial public offering (IPO) or additional securities to the public. The company must first apply for SEC approval and comply with its filing requirements. Then, the SEC is requi red to review the financial status and operations of the company before allowing the firm to issue securities to the public. Secondary MarketSecurities may be traded in the secondary market once the issuer has applied for and been approval by the SET. Operations The Stock Exchange of Thailand is a juristic entity that was set up under the Securities Exchange of Thailand Act, B. E. 2517 (1974). Operations started on April 30, 1975. Its main operations include securities listing, supervision of listed companies and information disclosure, trading, market surveillance and member supervision, information dissemination and investor education. Moreover, its duty is to promote saving and long term financial planning for developing the economy.SET is a center for trading of listed securities without distributing any profit to members. Board of governors Regulatory Framework The SET Board of Governors is comprised of a maximum of eleven people, five of whom are appointed by the SEC, and five who are elected by SET members. The SET President, appointed by the Board, is an ex-officio member of the Board. The Board is also responsible for formulating the SET policies. Management The organizational chart of SET can be classified into two major parts which are Exchange Function and CMDF Function.Each function’s organizational structure can be seen below. | | SET's Role The Stock Exchange of Thailand has been continuously improved the management system of listed Thai companies to have good governance. SET was started to study about the roles  of audit committee in 1995 before the financial crisis. After that, it issued a listing requirement indicating that all listed companies have an audit committee in early 1998. In that year, the SET also issued a guideline namely â€Å"Code of Best Practices for Directors of Listed Companies† to be a guild role of audit committee.Two years later, the Good Corporate Governance Committee, consisting of representatives from a variety of professional organizations, disseminated a report on corporate governance which set a framework to be used by organizations in the Thai capital market for developing good corporate governance systems and practices. The Thai government designated the â€Å"Compass for Good Corporate Governance† and set up the National Corporate Governance Committee (NCGC). In the same year, SET also proposed fifteen principles of good corporate governance for listed companies to implement.The listed companies have to apply the fifteen principles and are required to demonstrate in their annual registration statement (Form 56-1) and annual reports starting from the accounting period ending December 31, 2002. In July 2002, the SET has established the Corporate Governance Center to help listed companies develop their corporate governance system. The Center provides consulting services to and exchanges ideas about corporate governance practices with directors and executives of listed c ompanies, as well as those of firms preparing to be listed companies.Corporate Governance Center Background The SET has established the Corporate Governance Center to support listed companies. It encourages the company to have good corporate governance and stakeholders include shareholders, suppliers, customers, creditors, employees, and the community etc. Corporate Governance Center builds to have confidence investment in Thai capital market which support the knowledge about corporate governance including the developing good corporate governance system and practices. . The Center of consulting service Giving advises and exchange idea about corporate governance practices with directors and executives of listed companies as well as those of firms preparing to be listed companies. 2. Corporate Governance Self Assessment Evaluation was followed by the rule of listing company 3. Producing and disseminating a variety of information and materials as guidelines. 4. Holding activities to he lp educate listed companies' directors and executives. Products and ServicesOne of the SET’s missions is to â€Å"Offer a wide range of attractive products and services to create value and match financial opportunities across different segments of business and investors. † SET has continuously developed new products and services and improved the system to satisfy needs of the investors. SET group supervises trading activities and market participants to ensure that the market is fair, orderly, and transparent. The products and services of SET are as following. Product The products that SET offers can be classified into 5 major categories; equities, bonds, derivatives, exchange-traded fund (ETF), and derivative warrants.The more details of each type are discussed as following. 1. Equities Equity trading is the trading of securities issued by public companies where shareholders have a direct stake in the company as well as the right to vote in shareholders’ meeting s. The secondary markets for equities trading are The Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI). Types of equities are ordinary shares, preferred share, warrants, unit trusts, non-voting depository receipt, and depository receipt (DR). SET and MAI are different in terms of the types of equities traded.On SET, investors can trade all types of equities, whereas on MAI preferred shares and depository receipt (DR) are not traded. Market for Alternative Investment or MAI was established in June 1999 in order to encourage the smaller firms with potential high growth and innovation. MAI serves as a new fund-raising source for such firms and new alternative investments for investors who are interested. The vision of MAI is â€Å"We strive to be the right and efficient exchange creating value for high potential, innovative and ventures companies in ASEAN. † The core values of MAI are to be focus, accountable, networking, zealous, and innovative. . Bo nds After a bond is issued and sold in the primary market, the bond can be electronically traded through Bond Electronic Exchange (BEX), where investors can buy and sell bonds. The market was first launched on November 26th, 2003, and its goal is â€Å"to develop all facets of the Thai bond market to reach an international standard, on par with other mature bond markets in the rest of the world†. 3. Derivatives Derivatives are traded through Thailand Futures Exchange or TFEX which was established on May 17th, 2004. TFEX play a big role in Thailand economy in stabilizing and sustaining financial market and corporates.Derivatives are used to protect companies from unanticipated change of underlying assets which might be the raw material of the company. In other words, TFEX allows investors to hedge their risk by utilizing derivative products. TFEX has continuously introduced new products to be traded on the market. Up to the present, TFEX has a total of 11 products in 5 categor ies, which are equity, interest rate, precious metal, energy, and currency. First category, equity derivatives have a total of 4 types, which are SET 50 Index Futures, SET 50 Index Options, Sector Index Futures, and Single Stock Future.Second, derivatives that are traded on interest rate are 3-Month BIBOR Futures, 6-Month THBFIX Futures, and 5-Year Government Bond Futures. Third, derivatives for precious metal are 10 Baht Gold Futures, 50 Baht Gold Futures, and Silver Futures. Forth, derivative on energy price is Brent Crude Oil Futures. Fifth, the currency derivative is USD Futures. 4. ETF Exchange-traded fund or ETF is an open-ended mutual fund which is traded on the stock exchange. Through brokers, ETF investors can buy and sell at any time during the trading hours at the prevailing price when the order is executed.The main difference between normal mutual funds and ETF is that mutual fund is normally traded via asset management company or a fund issuer at the end of the trading day while ETF has real-time NAV or Indicative NAV which is calculated throughout the trading hours. With the help of designated market maker or liquidity provider, it allows investors to trade at the market price at any time. ETF is a passive management fund since it basically invests in a basket of underlying stocks which can be SET 50 Index, a stock sector index, commodity index and commodity price such as gold price and oil price.Mostly, ETF is the replicate of a stock index, making the expense and management fee lower for ETF. In contrast, mutual fund is more active making the cost of management more expensive as well. 5. Derivative Warrants (DW) Derivative Warrants give the holder right to buy a stock or an underlying security at the pre-determined price within the stated period for certain quantity. The issuer of derivative warrant is a third party, not the issuer of the underlying securities. Warrants and Derivative Warrants are different in many aspects, as shown in the foll owing table Services 1. Information serviceDue to SET comprehensive, accurate and up-to-date source of Thai listed companies information, SET provides information service for customers who would like to access and disseminate trading or listed company information either with commercial or non-commercial purpose. Major customers of this service are member companies, data vendors, presses, academic institutes, mutual funds, governmental agencies and general investors. SET Information Service is classified into 3 categories; a. Datafeed (raw data for further application) b. SETSMART or SET Market Analysis and Reporting Tool c.IR website service for SET listed companies 2. Listing service on SET Companies that are interested in listing itself on SET have to meet many rules and regulations. Being a listed company gives the company many advantages. The company will have a larger source of long-term capital that is crucially important to enhance its operation, expansion and competitiveness . The company will obtain a better and positive public image due to its high standard and transparency giving the company with higher bargaining power and company’s credibility. Application fees| Initial fees| Annual fees| | THB 50,000| 0. 5% of paid-up capital ( With minimum and maximum of THB 100,000 – THB 3,000,000 )| Regressive rate varies with the level of paid up capital as follows:   | less than| THB 200 M. | at 0. 035 % of paid-up capital| THB 200 M. | < Capital