In what ways can ‘A Streetcar Named Desire’ be seen as a modern tragedy? Essay

The ways in which ‘A Streetcar Named Desire’ by Tennessee Williams can be seen as a modern tragedy, or indeed as any tragedy is a subject of much contention. The answer lies in one’s interpretation of the characters in the context of the genre; the tragedy is made or discarded depending on whether the audience’s sympathy lies with Blanche or Stanley. In order to explore these interpretations one must define the features of modern tragedy as opposed to the ancient Aristotelian definition. The two share some features, such as the violation of the ‘natural order’ of social or personal relationships (i.e. Oedipus’ incestuous relationship with his mother), and the focus on a tragic hero’s fall from status, respect, and in classical tragedies from power and wealth. However, there are also stark differences in modern tragedy where (especially in Williams’ plays) the hero is more likely to be feminine. Although this is not exclusive to modern tragedies – in Sophocles’ ‘Antigone’ the protagonist is female – it is certainly a feature. Social issues are also treated more personally as the epic scale of civil unrest present in most Aristotelian tragedies is discarded in favor of a focus on a single family unit as a microcosm of social behaviour. As a result, the characters themselves become far more complex – a far cry from Aristotle’s theory that characters should merely serve to advance the tragic plot. Broadly speaking then, ‘A Streetcar Named Desire’ certainly fits the prescriptions of a modern tragedy, not least as it contains several complex themes such as alienation, entrapment and the struggle between fantasy and reality. Written in 1947 soon after the Great Depression and a period of prohibition when the borders between social classes were becoming more blurred, these play on the very real threats of alcoholism and social decline. Blanche’s constant drinking becomes a symptom of her alienation from society, which was in turn caused by her estrangement from her late husband, Allen Grey. Stella asserts that Blanche â€Å"didn’t just love him but worshipped the ground he walked on† – a religious phrase that contrasts deeply with her later disgust of Grey’s homosexuality. For Williams, living as he did in the often deeply religious, homophobic south, Allen Grey’s suicide would have constituted a tragedy even when separated from the rest of the play. It certainly illustrates the close links that Williams draws between love, alienation and death; Grey’s separation from Blanche causes his death, which in turn leads to her own isolation. This isolation is further illustrated by the metaphor of light; Blanche constantly insists that the lights be dimmed â€Å"turn that over-light off!†, and even directly likens her love for Allen Grey to a â€Å"blinding light† – it is clear that the darkness is Blanche’s alienation, her punishment for driving him to suicide. Yet light also reveals Blanche’s struggle between fantasy and reality. She cannot bear to see herself in the harsh light of day – even â€Å"screams† during the final scene when Stanley rips the covering off the lamp, completely destroying Blanche’s already splintering fantasy world. This hysterical reaction demonstrates her dependence on the delusions of grandeur and romance that she only half-believes. Blanche is trapped by her own volition; a state echoed in many other of Williams’ tragedies including ‘The Glass Menagerie’, where the character of Amanda is similarly ensnared in a more glamorous past. The play also ascribes to another feature of modern tragedy; the focus on a very small, ordinary family unit as opposed to the monarchs in plays such as ‘Macbeth’ or ‘Hamlet’. It is clear that the clash of Stanley and Blanche is representative of a much bigger division between the old and the new America, and yet their placement in a tiny family setting emphasises their effect on the ‘ordinary American’ – Stella – who is caught in the crossfire of social differences. However merely dealing with these issues, as compelling as they are, only comprises a single aspect of the ways in which ‘A Streetcar Named Desire’ can be seen as a modern tragedy. Indeed, for the play to be called a tragedy at all a defining feature must be covered, and that is the existence of a ‘tragic hero’ whose presence drives the action forward. Therefore, our understanding of ‘A Streetcar Named Desire’ as a modern tragedy must to a large extent rely on whether we can interpret Blanche as Williams’ tragic heroine. She certainly bears a striking surface resemblance to the ancient tragic heroes in her evident fall from high to low, from Belle Reve to the Elysian Fields. This is made evident in her first entrance; her appearance is described as ‘incongruous’ and techniques such as the repetition of â€Å"Stella, oh Stella, Stella!† stress her hysterical inability to cope with her new surroundings. However even this is punctuated in the stage directions with â€Å"feverish vivacity† – suggesting a desperate or false behaviour at odds with the ancient definition of the tragic hero as an essentially noble character. This is emphasised later in the scene by the first suggestion of Blanche’s alcoholism as she â€Å"rushes† to the liquor closet â€Å"panting for breath†, and corroborated as evidence of her sordid affairs at the Hotel Flamingo is revealed. Indeed Blanche herself talks about the â€Å"rattle-trap streetcar† called Desire that â€Å"brought me here†, indicating that her downfall was caused by her own â€Å"brutal desire†. Yet if we do accept that Blanche has already completely fallen into poverty and alcoholism, then the play itself becomes the mere aftermath of a tragedy; the effect of a destroyed character upon her surroundings. Some critics would agree completely with this standpoint – indeed the director of the stage debut, Elia Kazan, portrayed Blanche as a â€Å"phony, corrupt, sick, destructive woman†Ãƒ ¯Ã‚ ¿Ã‚ ½ wrecking Stanley’s home who deserved – indeed needed – to be driven out. However, this view utterly destroys any tragic perception of ‘A Streetcar Named Desire’ by necessitating a total support of Stanley’s actions (â€Å"This makes Stanley right!†)1 – leading to a ‘happy ending’ wherein the Kowalski’s can proceed happily with their lives. While this may have been a suitable presentation for the still largely patriarchal 1940’s, in modern productions a new outlook must be considered. It cannot be ignored that Stanley (however justifiably) incapacitates Blanche both mentally and emotionally as he destroys her refined persona – â€Å"There isn’t a goddam thing but imagination!† – until she is reduced to â€Å"inhuman cries†, constituting Blanche’s fall from sanity as the basis for a tragic fall from high to low, as opposed to any material loss. Although it is true that Blanche is less of a hero possessing a tragic flaw than an anti-hero with a single redeeming feature – in this case her doomed relationship with Allen Grey that has fuelled her desires ever since – practically all of Blanche’s flaws can be explained (if not excused) by her tragic experiences. Her deception of Mitch is the desperation of a woman alone in a patriarchal society whose only chance of security is to attract a husband. Her alcoholism is merely a further coping mechanism, and her constant bathing an attempt to cleanse herself of her sordid affairs. This is consolidated by her wish to be buried â€Å"into an ocean as blue as my first lover’s eyes†, the reference to water again suggesting her desire to be purified and return to the happier days of her youth. Blanche’s tragedy is therefore not merely her fall from status, but her inability to move on from her past. As Dale Carnegie said: â€Å"One of the most tragic things I know about human nature is that all of us tend to put off living. We are all dreaming of some magical rose garden over the horizon, instead of enjoying the roses that are blooming outside our windows today.†2 Yet despite all this evidence providing sympathy with Blanche, Williams seems determined to keep the balance of right and wrong utterly ambiguous. For example in Scene Eight, soon after Blanche’s extremely poignant line â€Å"candles burn out in little boys’ and girls’ eyes† – a clear reference to her past with Grey – she calls Stanley a â€Å"healthy Polack†. This ignorant, racist comment distances Blanche again, and Stanley’s reply â€Å"what I am is a one hundred percent American†, would have immediately re-endeared him to the audience, especially at a time of such social integration. It is this uncertainty as to who we should support – Blanche or Stanley – that really questions the existence of a tragic hero in ‘A Streetcar named Desire’. Even the alternative, as stated by C.W.E. Bigsby, that â€Å"the real hero of the play, therefore, is Stella, for she alone is prepared to offer the necessary comfort†3 is a flawed argument. Although Stella is the most sympathetic character, this is not synonymous with heroic as she is ultimately subdued by Stanley into forcing Blanche away; a far cry from offering her ‘the necessary comfort’. Unlike in Shakespearian tragedies such as ‘Othello’ where the enemy is clearly portrayed, Williams blurs the distinctions between right and wrong until the play more resembles the tragedies of Sophocles, which are essentially concerned with the crisis of right versus right leading to an outcome in which no-one wins. So, although critics such as Joseph Wood Krutch state that â€Å"Tragedy must have a hero if it is not to be merely an accusation against, instead of a justification of the world in which it occurs†4 this is not necessarily true. ‘A Streetcar Named Desire’, along with many other Tennessee Williams’ plays such as ‘The Glass Menagerie’ is tragic not because it details the fall of a hero, but precisely because it contains no hero at all. Modern tragedy is itself an accusation against a grey, mundane world of ordinary people, for whom the only escape is through self-delusion, alcohol, sex or madness. In this respect ‘A Streetcar Named Desire’ becomes the ultimate example of modern tragedy as, after Blanche’s entire existence is shattered, the others merely resume their poker game. The entire play is built around this tragic indifference, both with the detached ending â€Å"This game is seven-card stud† and the very preface, where Williams foreshadows Blanche’s inevitable destruction with the words of Hart Crane, â€Å"And so it was that I entered the broken world.† Bibliography Williams, Tennessee. ‘A Streetcar Named Desire’, Pearson Education Limited 1995 (copyright Estate of the late Tennessee Williams 1947) Bigsby, Christopher W. E. ‘Tennessee Williams: Streetcar to Glory’, Harold Bloom Krutch, Joseph Wood. ‘The Tragic Fallacy’ 1929, in Tragedy: Vision and Form, Ed. Robert W. Corrigan, New York: Harper, 1981 Kazan, Elia. ‘Kazan on Directing’, Knopf Publishing Group, 2009 (copyright Frances Kazan) Carnegie, Dale. ‘How to Stop Worrying and Start Living’, Pocket Books; Revised edition, 1990 Aristotle. ‘Poetics’, Penguin Books Ltd, 1996 1 Kazan, Elia. ‘Kazan on Directing’, Knopf Publishing Group, 2009 (copyright Frances Kazan) 2 Carnegie, Dale. ‘How to Stop Worrying and Start Living’, Pocket Books; Revised edition, 1990 3 Bigsby, Christopher W. E. ‘Tennessee Williams: Streetcar to Glory’, Harold Bloom 4 Krutch, Joseph Wood. ‘The Tragic Fallacy’ 1929 in Tragedy: Vision and Form, Ed. Robert W. Corrigan, New York: Harper, 1981

Educational stages Essay

The K to 12 Program covers Kindergarten and 12 years of basic education (six years of primary education, four years of Junior high school, and two years of Senior high school) to provide sufficient time for tmastery of concepts and skills, develop lifelong learners, and prepare garduaes for the tertiary education, middle-levels skills development, employment, and entreprenuership. The K+12 educational program is perceived by the Aquino administration as the â€Å"long term solution to poverty.† This program aims to give every student a quality education that will make them globally competitive. This will be done by decongesting the curricilum and using quality materials for learning such as textbooks. Aside from this, high quality teacher will be given priority. High standards will also be set in Mathematics, English and Science in all levels. Thus eliminating the perception the highschool education is preparatory for college. ISSUES AND CONCERNS One of the major campaign platform of Pres. Aquino is the K to 12 educational program and it is also one of the most controversial initiatives. On May 15, President Aquino signed into law the program mandating Filipino pupils to attend kindergarten, six years of elementary school education, four years of junior high school and two years of senior high school. The signing officially ended the country’s 10-year basic education cycle, which now exists only in Angola and Djibouti. K to 12 hopes to decongest the curriculum, by spreading lessons over 12 years, instead of cramming them into 10. K to 12 hopes to do away with college remedial classes, by improving the quality of high-school instruction. K to 12 hopes to protect the rights of Filipino children who, at 18, are legally and emotionally still kids, unprepared for work or university.. Some problems that abound with K to 12: Lack of family, school, government resources; the herculean task of implementation; the need to address more urgent concerns such as early and massive dropouts. Many  schools are currently not ready for Grades 11 and 12. Aside from lack of classrooms, their teachers are not trained to handle higher-level subjects, like calculus for students who want to major in the sciences in university. K to 12 would be far more difficult to implement in already overcrowded and poorly equipped public schools, where many teachers are insufficiently trained, classes are often held in multiple shifts and most students struggle to make ends meet. The biggest problem of K to 12 has always been, and will always be, the cost. Even if public education is free, families have to spend for transportation and supplies. An additional two years is a burden for most Filipino families, who want their children to finish school quickly so they can work.

A good (or bad) parent Essay Example | Topics and Well Written Essays - 500 words

A good (or bad) parent - Essay Example A child’s first school is his home and it is the teaching of the parents which forms the first stage of learning for children. The role of parents in shaping the character and the future of a child cannot be ignored. But a good parent would truly be one who would be able to nurture their child by instilling all the good qualities that are needed to make a good person. A good parent is defined as one who shows understanding for the needs of their children, supports them to boost their confidence and at the same time teaches the importance of ethics and values to the child. For effective parenting, it is essential that a parent is aware of the needs of their children. A good parent is considerate and understands the needs of their child and helps them accordingly. A perfect example is that of the children who are slow and do not outshine in their academics due to different reasons which may include lack of concentration or poor learning skills. It is the duty of the parent to be thoughtful towards the need of their child rather than scolding the child for not being able to achieve the best grades in class. A parent should be able to assess where their child stands and they should have an effective communication with their children to improve understanding of the physical as well as psychological demands of the young growing mind. This would provide for a healthy upbringing for the children as they would not be under stress and exertion.

Behaviors, Actions and Communications of IKEA Term Paper

Behaviors, Actions and Communications of IKEA - Term Paper Example There is a great need in the modern society that enterprises were guided not only by the possibility to make more profit but also to fulfill the community’s expectations. It requires companies to be customer-centered and perform activities in accordance with the view of society’s development. In addition, companies should also be responsible to stakeholders with regard to the environment, equity, employment, health, and human rights and community development (Fulfilling Social Responsibility  Ã¢â‚¬â€œ Extract from Chinese Government Guidelines, 2013). Such an approach will help enterprises realize a balance between their growth, society and the environment. Moreover, its a requirement by the entire society that companies followed social activities since businesses have a significant impact on almost all aspects of the society and life of its people.   Edvardsson and Enquist (2006) state that the most fundamental and enduring asset for any company is the brand. However, value-based service brands are more important in building the good company’s image, where the enterprise tries to avoid aligning itself with such negative values as environmental pollution or cheap labor conditions. Instead, focusing on the attractive values such as community development and provision of healthy products help the company to create its positive image and contribute fully to the society (Edvardsson & Enquist, 2006). A Swedish multinational company Ikea that designs and sells  ready-to-assemble furniture, appliances, small motor vehicles, and home accessories, has built its values-based service brand by following the vision â€Å"To create a better everyday life for the many people† (The Ikea vision, n.d.).  The idea of its founder to create the home furnishings of good design and functionality and at a price that everyone could afford was the main â€Å"democratic idea† of the company.     Ã‚  

THE LAW OF PROPERTY Case Study Example | Topics and Well Written Essays - 1500 words

THE LAW OF PROPERTY - Case Study Example 15 July 2004. guardian.uk. [internet]). In view of this common law principle, Nina and Liam in the case at bar are both owners of the house in question. As such, the two have interests in the property. The issue that has to be addressed next is the extent of their stake in the realty. When two or more individuals own a property, the same either may be under joint tenancy or may be held by the said persons as tenants in common. In the former, everyone owns all of the property and when a party dies, the whole estate is transferred to the surviving owner. On the other hand, in the case of tenants in common, each of the proprietors owns a specific portion of the realty. The system of joint tenancy is usually what is observed between married couples while those living in as partners outside of wedlock follow the arrangement for tenants in common. (Severing a Joint Tenancy. law-bytes. swarb.co.uk. [internet]). What then is the relationship that prevails between Nina and Liam over the house Is it that they are joint tenants or are they tenants in common It has to be importantly noted that the given circumstances are silent as to whether they have come into some agreement on what system to adopt except that they had talked about the property being equally theirs. Of the same significance is the fact that it was solely Nina who purchased the asset as a freehold which means that she is the absolute owner in fee simple. (Freehold Meaning and Definition. thinkexist.com, [internet]). The heirs and successors of Liam will be at a disadvantage in a joint tenancy set-up because if he dies, everything in the real estate goes to Nina as the latter will have the so-called right of survivorship. It also will still be disadvantageous to Liam in the event that Nina dies because of one peculiarity of the situation. The recorded owner is Nina and Liam will have to prove the ownership union. What if they are together as owners of the house in the concept of tenants in common In the lat ter case, each of them, as well as those who will inherit or succeed from them, will be entitled to his or her equitable share upon the demise of the other. In essence, it would be best for Liam to have the terms clearly defined with Nina by serving a written notice unto her to that effect. Things will be fine if Nina readily accepts the proposal of Liam. However, if and when it becomes necessary, a court action may be possible in order to delineate the shares of the parties and to clarify their equitable interests and have the same unequivocally declared to avoid any future conflict or controversy. Going back to the fact that the parties were not explicit as to the ownership relation that would bind them, this has to be resolved in accordance with a reference to judicial pronouncements which take into account the evidence at hand and the surrounding circumstances. In the case of Stack v. Dowden, the House of Lords resolved the controversy with a fair, logical and wise verdict. It was about a couple in cohabitation without the benefit of marriage but who however registered their purchased property. They later on actually separated. The distinguished Lord Hope of Craighead opined that a test must be had as to whether the interests of the parties were equal or not in the joint ownership. This simply shows that the joint ownershi

Economic Considerations, and not Justice, should be the Basis of Tort Essay

Economic Considerations, and not Justice, should be the Basis of Tort Law - Essay Example A tort is a common law that deals with resultant interactions between people. It is a civil wrong that mainly ensure the behaviors of an individual does not affect the well-being of another individual. A tort may not encompass an illegal activity, but it concentrates on the harm or loss an individual gets because of another individual action. It, therefore, helps people maintain their previous positions and status they enjoyed before the occurrence of the tort act. In a tort law, the tortfeasor is liable to reinstate the breach of an individual natural position through compensation mainly by monetary terms1. Various debates have prevailed on the intentions of tort law whether to restore justice or ensures people gain previous economic conditions. This is because tort suits make victims transfer problems to other people gaining previous positions while at the same time enduring justice. In as much as torts act as a form of justice, it basis should be economic considerations as justice remain relative through diverse societies. As opposed to common law, this guarantees punishment for the offender upon approval of offense; torts focus on judgment of liability. Concurrently, liability gets paid through economic means that cover compensatory damages to relieve the plaintiff. It is also significant to note that tort does not make judgments based on claims as opposed to criminal laws, which allow claims with support of evidence2. This, therefore, proves torts to be focusing on economic rejuvenation rather than ensuring justice for the offended parties. In an art, shell the argument attempt to reveal the intention of tarts laws, whether to ensure economic fairness of justice. Notably the economic discourse is coming into the forefront of tort law. As a result, many scholars have done proficient research on the arena to establish and gather evidence of the same. From the past, torts remain confused with the aspect of justice while, in real terms, they help restore econo mic lose suffered by the offended victims. They, therefore, are consequential economic loss experiences because of negligence causing a physical injury3. Coincidentally, confusion regarding tort based on justice rather than economic loss also arises due to strict liability accorded to torts. It, however, is essential to note that a difference regarding the economic nature of torts arises due to the strict liability characterized by tort laws. Consequently, torts are not diffusible by excuse or ordinary prudence a factor that approves torts to be focusing on economic justification. Therefore, in as much as torts act as a form of justice the main reason existing behind the action of torts remains economic reactivation4. Various theories can explain the reason why torts consider economic perspectives rather that justice. Deterrence theory, for instance, works on the basis that, for every action, there is equal and opposite reaction. Judging by the principles, deterrence theory ensures people who commit varied offenses remain responsible for their action through limiting future similar actions. From the perspective of this theory, torts subject people to reimbursement of the offended not to ensure justice, but ensure economic stability of the affected5. Consider a person affected by the actions a surrounding industry, which pollutes the immediate environments spreading diseases. The industry is responsible for spreading of diseases, therefore, is responsible for

Case study report reviewing marketing strategy and operations for Assignment

Case study report reviewing marketing strategy and operations for Nestle company - Assignment Example In essence, the company’s revenue base has been increasing subsequently over the past few decades. Presently, the company is ranked position 72 among the leading global business firms in the food and beverage industry. The company has established itself among the competitors and developed to be a favorite for many consumers in the industry. The company has established several outstanding strategies for building value for stakeholders and consumers. For instance, the company has established a smooth communication system with the customers and the stakeholders. Essentially, the company has made good use of the modern technology to communicate with clients and the stakeholders. For example, the company has developed a comprehensive website where the information regarding the nature and type of products produced by the company can be traced. Moreover, the company enhances quality production to facilitate consumer satisfaction and thereby boost the quantity of sale. Basically, quality production is a primary approach towards creating value for a product or service offered by a company. The Nestle Company has been of great importance to the society on matters of social and economic development. For instance, the company offers education scholarship to students from poor backgrounds. In addition, the company funds education programs that promote the development of technical skills to ensure that all members of the society possess skills from which they can source their daily bread. Consequently, the company supports health development programs in the various regions it has established its business. In addition, the company is an advocate of sustainable development. For instance, the company has established safe disposals points of solid waste to avoid polluting the environment. Moreover, the company as managed to reduce the use of fossil fuels by a notable

Dynamics of Hospitality Industry Management report Assignment

Dynamics of Hospitality Industry Management report - Assignment Example The industry has had major the negative impact on environment. The impacts have revolved around the usage of water, electricity, non-renewable energy and food wastage. Some hotels have been accused of spilling industrial refuse into rivers affecting the aquatic ecosystems. The hotel industry is embarking on training and equipment to ensure that employees make conscious decisions that encourage sustainability. This includes formulation institutional policies that enhance sustainability. The hotel industry hopes to reduce the waste output, energy consumption, water consumption and carbon dioxide emissions through adopting renewable energy. 1.1 Purpose of the report The purpose of the report is to analysis the sustainable development issues that the hospitality industry should focus on to ensure the quality of the future generations is not compromised. The report shall recommend solutions that could positively impact the sustainability management programs and unique additional solutions . PART II (SPECIFIC) 2.0 Westin Hotel Macau The Westin Hotel Macau is part of the Starwood Hotels Group. The Hotel focuses on creating a better world experience by placing special attention to communities and environment. 2.1 Brief Background Westin Hotel Macau is a leading luxury resort located in the Greater China. The 208 room hotel is placed in scenic sites to give the guests lasting experiences. The facility is situated on the south Eastern tip of Coloane Island near the Macau international airport. The facility is part of the 185 Westin hotels and resorts worldwide. The hotel has world class facility that aims at giving guests experiences and not just services. Therefore, the management of the hotel has invested in the qualified manpower and new environmental and financial energy management programs. This is likely to make the hotel globally competitive, high in demand and established. 2.2 Mission statement The Hotel has a mission of helping individuals and communities to atta in their maximum potential through strategic perspectives. 2.3 Environmental impact analysis The hotel industry has had a negative impact in the environment. Hotel in the past did not have a comprehensive energy conservation policy leading to the usage of high levels of energy. The equipments used were doubled the energy needs of the hotel. The hotel had little control of the energy consumption and regulation among the employees. This included failure of basic strategies for electricity and water conservation. Most of the energy conservation opportunities were not captured. The negative impacts were seen in the food wastage, unnecessary use of electricity and weak sewerage systems within the entire facility. Most of these negative impacts were propagated by the employees. However, the hotel has developed a comprehensive environmental and energy resource management. This is based on the needs to sustainability. The Westin Hotel managed to reduce the greenhouse gas emissions by over 3 kilograms in 1998. This happened through performing industry specific energy audits and training hotel staff on the need to conserve energy. The facility uses water from treated sewerage in its main golf course. The employees have been trained to minimize electricity usage i.e. using natural light, eliminating unnecessary usage of the cooling systems and enhancing the efficiency. The hotel is investing in employees to ensure that a minimization of physical wastage. Many hotels are

To what extent does personality predict employee performance How do Essay

To what extent does personality predict employee performance How do personality traits translate into individual's profession - Essay Example Behaviorists assumed people to be no more than a set of a myriad of learned responses to various environmental stimuli and reinforcements (Ayers, 2007). However, most of the contemporary research has opted to reject these two views due to their extremism. Contemporary research now takes a more commonsense approach in attempting to clearly define personality, the approach taken by this research is careful not to overlook some of the common traits such as sociability and persistence which are key in the determination of an individual’s behavior (Ayers, 2007). Personality traits are defined as various dimensions of a single individual’s personal differences they are essentially a set of distinguishing characteristics and qualities of a given individual. Traits determine the readiness of a person to consistently act, think or feel in a relatively similar manner when exposed to a variety of situations and stimuli (Ayers, 2007). The Different Concepts and Theories Used to Det ermine and Individual’s Personality and Their Personality Traits There are essentially two approaches that are used in the determination of an individual’s personality. These two approaches are the idiographic and nomothetic approach. The idiographic approach essentially tries to study the given individual’s personality as compared to another individual. In trying to gain a critical and deeper understanding of the individual, it looks at the person’s complexity, uniqueness as well as the richness. Over time, there are several key concepts and theories pertaining to personality that have been developed. One of these theories is the theory formulated by Carl Jung that is used to classify individuals as either having and introverted personality or an extraverted one. According to this theory, introverts tend to be reliable, shy, quiet and often like to plan things well in advance, this is in addition to their often being pessimistic. Inversely, extraverts ar e seen to extremely sociably as they often do not like being alone, they often tend to have a lot of friends, have an optimistic nature and tend to enjoy parties. In formulating this theory, Jung is seen to make a personality type matrix that is mainly based on four key functions that are normally used by people in the event that they are other individuals, situations or things. These four functions are feeling, sensing, intuition and thinking. According to Jung, everyone tends to make use of these functions but the inherent proportions tend to be vastly different. Jurgen Eysenck also developed a trait theory that has continued to be largely influential. The theory developed by Jurgen have been shown to mainly be genetically based. The model developed by Jurgen offers a means that helps in appropriately linking behavior, traits and types. The theory claims that each individual person essentially has a certain set of various identifiable traits which eventual form a trait cluster and the successive personality structure is then found to be hierarchical (Hayes, 2005). It was Charles Horton Cooley who was responsible for the development of the looking class self-concept.

Social intelligence class the name of the bock social intelligence the Essay

Social intelligence class the name of the bock social intelligence the new science of success for Karl Albrecht - Essay Example thus grouping people accordingly as well as understanding how the groups and societies map the environment in terms of ecological, social and personal thereby, establish a structure to aid in group decision making as well as revealing the views of participants. c) Performance prediction. Basing on the social intelligence test concept, people with low social intelligence are more suited to low customer contact roles because they may not necessarily posses the social competencies required for the success of frontline office duties. On the other hand, those with high social intelligence are considerately skilled socially and thus can communicate or contract directly with other people. d) Creating interaction strategies. By understanding social intelligence, it helps on to understand the dynamics of dealing with others for exampling assessing the impact of one person’s behavior on other people thus strengthening the ability to get along with others. One becomes socially successful by learning how to deal with others and interact with new behaviors. e) Helps leaders to enhance their leadership competencies. Some of the competencies that can be learnt in improving leadership include self confidence, the drive to improve performance, staying calm under pressure and having a generally positive outlook. In dealing with a family member with a toxic personality so as to affect the impact of their negative personality on your own personality, the following approaches can be undertaken.You need to acknowledge that their pain, upset and unhappiness is their own and not yours. This will help you not to believe in what they do or say.second is getting positive about yourself. When things are not better it is good to remain positive. This will make those around feel better and as well can influence the negative personality to feel positive. In addition, be firm and declare your stand about not being well with negativity. For example one can make use of comments such as

Henry VIII as a King, Evaluation Essay Example for Free

Henry VIII as a King, Evaluation Essay To an extent Henry VIII achieved his aims as King between 1509-1515. Whilst he achieved aims such as to have glory in battle such as with France to earn prestige and therefore establish greater power within the European countries, he did fail in some aspects with most set aim as king. An example of this is his inability to produce a male heir to the throne which arguably was one of his prime aims as king. One of Henry’s main aims as king was to be a different leader in terms of his style from that of his father; he wanted to be a more warlike leader who was more dominant across Europe and also to be a generally more popular king. We know that this would have been one of Henry’s main aims as in the first year of his reign he executed Empson and Dudley. These two people were corrupt and unfair leaders and were very unpopular within England; they were very much associated with Henry’s father. By Henry executing them publically in 1510, by way of a big public ceremony illustrated two things to the people; firstly that he is a perhaps fairer king and that their desires were what were to shape his decisions and secondly that he would be a completely different, more popular and significant leader on a larger scale, so within Europe, by having more of a dominant presence, this is shown through the bold and trademarking execution. Henry succeeded in this aim, he indeed did become a more popular leader by taking the interests of his people very seriously, and he even built a strong army to protect everyone from frequent civil wars so making England more of a unity in itself and therefore a stronger nation. Also Henry, in an attempt of gaining the popularity from the nobility, cuts back on bonds and recognizes to please them as well as letting the nobles into his private life more and inviting them to private events of his, this in turn would’ve made them feel more important and involved with the king’s affairs, and so again has a stronger force which is more connected and contrasts to his fathers. On the other hand, it could be said that Henry didn’t need to be as precise and organised as his Father was, because Henry was left with all the money and financial stability his Father had spent his career accumulating and so he had the time and money to go to war or spend leniently rather than s aving and building up money. Henry VIII aims appear to emulate more his forefather Henry V’s aims instead by being a great warrior king and so achieving honour through War. Through conquest he intends to extend his supremacy over the lands of rivals. Henry V owned more French land in his reign than the king of France did himself, this could have been the ownership Henry VIII also desired, this brought about Henry VIII first War with France. In credit to Henry, I think he was very brave in choosing to go to war With France in 1513, because despite his father’s council being very experienced people who he should listen to, he chooses not to, following their titles as ‘ministers of peace’ they tried very hard to persuade Henry to keep peace with France. Given that he was newly king at this point I think it shows a lot of courage to foresee the opinions of the experienced council to pursue your own ambition even if faced with potential big consequences if he were to lose battle. Henry was victorious in his first battle and so he would’ve appeared a bold leader. Henry did earn a great deal of prestige in not only going to War with France and winning it, but actually leading his troops in 1513 into the battle of the spurs personally which in itself brings about great honour. Impressively at the same time, the French allies, the Scottish, invaded England and so came about the battle of Flodden, again England won this too and although Henry had little personally to do with this war because it was Surrey who won it, Henry as king still took credit and so as the unity of England, it had won its first 2 wars. As well as this he achieved his aim in cementing a good relationship with the Nobles by using their armies. However in 1514 he was almost forced to sign a peace treaty because financially England was desperate for money as henry in only one year had spent all his inherited money (estimated at about  £960000). This shows his somewhat lack of organisation as a king and more his ruthlessness and desperation for war. Another factor detracting from the prestige of this war is that Henry was used by Ferdinand and left by him at the last stage before the battle, so showing dishonour by Ferdinand towards him. In aims such as securing the Tudor dynasty Henry didn’t really succeed. Although he did make attempts such as marrying Catherine of Aragon in order for her to give Birth to a male Heir it didn’t work. Unfortunately as king this was one of his most important aims, we know this because he married Catherine the same year he was king and so it was obviously of key importance to produce an heir. This having failed, as it did, Henry did still try and secure the dynasty, by taking actions such as marrying his sister to the French King, Louis, he was creating the possibility of a Tudor dynasty on the French throne. Henry even wanted an annulment from Catherine because he believed it was her who couldn’t give him a son, he went to great lengths and disrupted his very important relationship with the Pope just to get an annulment and I think this shows how important it was to him to have a male heir as king. However, as far as fulfilling this aim early on in his reign goes he didn’t manage to do this, still he was dedicated in trying to do it. Henry knew that it was very important to have a secure and good relationship with the Pope; he understood that he was a very influential figure with a lot of power over the people and so for unity within his country, he would have aimed to have an important relationship with the Pope. Examples of Henry’s efforts to appease the Pope would be after the Battle of the Spurs, the pope wants Henry to make peace with France, even though Henry is reluctant to do so, he does because he understands the importance of having a good relationship with the Pope. It is only when Henry starts to have problems with the notion of shared power between himself and the king, tension starts as a lot of their roles cross over causing friction by occasional conflicting views. As a result Henry achieves senior power which is what he wants but he then compromises his relationship with the Pope for this. So only for a short while Henry did succeed in his aim of having a strong relationship with the Pope. Clearly in the way Henry behaved and ruled as a king, it is evident that Henry wanted to be different, rule in a different way and allocate his time differently than to how other kings before him may have. Presented with being king at the age of 18 he chose to be a king known for doing everything in excess, living lavishly, playing sport for example tilting and generally enjoying himself seemingly far more than his worn down father had done. Henry wanted to be the ‘renaissance king’ and in terms of this aim, it is one Henry definitely achiev ed by his new ideas and new style of kingship, he had a huge interest in the arts and music too which shows him to be a more cultural king. Historians say that he didn’t want to worry himself with the daily burdens of government and administration instead he would put others in charge to do this for him. Whether this style of leadership is right or effective it is still a new approach and perhaps a refreshing one to England at this time as when he came to throne he was very much liked by England and most importantly the nobles. As much as Henry spent a lot of his money in warfare, he too seemingly had interest in the wealth of the English crown in order for it to have dominance over Europe, at the beginning of his reign England was not as powerful as Spain and France and this was a lot down to the lesser financial position England were in. By taking actions such as selling land acquired in war to the nobles he not only is making money but is also becoming more ‘liked’ with the nobles. On the other hand it is decisions like this which I think weren’t very strategic, if Henry was so determined on going to war and making an impact on Europe, it would’ve seemed more proper to devote new land for the army or war related things such as weaponry manufacturing or housing for the army, this would’ve strengthened the English army and therefore brought about more global respect. I think Henry to a greater degree achieved most of his aims as king well given his young age and personal interests that he had. He did become a renaissance king and in doing this he also gained popularity, he was a very different King to his father as he was more warlike which was his intention as well as securing personal relationships with the nobles, however he didn’t produce a male heir and his control with the money his father spent a career building up I think wasn’t spent very efficiently for the benefit of the whole country.

Calculating Cargo Load

Calculating Cargo Load MV STC Bulk Carrier is a geared handy max bulk carrier with five holds and a DWT of 49500T (summer). SHIPS GENERAL PARTICULARS NAME: STC BULK CARRIER TYPE: BULK CARRIER DWT SUMMER:49500 T DISPALCEMENT SUMMER:57923TONNES DISPLACEMENT WINTER:56423TONNES NUMBER OF HOLDS:5 (ALL CAN CARRY HEAVY ORE ) CRANES:430 TONNES HEAVY WEATHER HOLD:NO 3 BALLAST PUMP CAPACITY:2x2000T/Hr CONSUMPTION: FO-32TONNES PER DAY DO-2TONNES PER DAY IN PORT FW-4TONNES PER DAY IN PORT AND AT SEA SEA SPEED:14 KNOTS The ship has received the voyage orders as follows: Discharge bulk sugar SF 1.224 m3/tonnes at Jubail using 3 vacuum discharge at a rate of 250t/hr per vacuum discharge Load maximum cargo of sulphur SF 0.87 m3/tonnes with 4 shore feeders at Sharjah.Maximum draft at Sharjha berth is 15 metres Vessel will receive the required bunkers for the voyage at Sharjah after cargo operation. DISTANCE FOR THE VOYAGES Distance Dar Es Salam to Jubail is 3744 Nm Distance Jubail to Sharjah is 373 Nm Distance Sharjah to Summer Load Line is 3210 Nm Distance Sharjah to Melbourne is 6490 Nm The vessel is presently in tropical zone and will be entering the summer zoneÂÂ   on its way to Melbourne , so cargo should ne loadedÂÂ   keeping in mind that the vessel should be at here summer marks an arrival at summer load line i.e zone allowance should be added to get the correct value of cargo to be loaded . This assignment covers a detail calculation on how to get the total amount of cargo to load when vessel will be entering from one zone to other and different loadicator conditions . ANSWER: Gather information relating to the cargo from the IMSBC, company procedure, flag state requirements. Check if the cargo is in group A, B, C Sulphur is in Group B and Group C. The IMSBC states that the group B cargo of sulphur cannot be carried in bulk so we will be carrying group C sulphur cargo. GENERAL PROCEDURES FOR PREPARATION OF HOLDS Tool box meeting to be carried out (MCA, 2016) Risk assessment to be carried out (MCA, 2016) Communication to be checked between the hold ,bridge and cargo control room (MCA, 2016) The cargo hold to be properly ventilated , gasses to be checked and a permit of work to be issued (MCA, 2016) (IMO, 2016) Dunnages to be removed if any. Bilges to be cleaned and dry (PI, 2002) Strum boxes, bilge covers, sounding pipes and thermometer pipes should be cleaned and not be defected Bilge suction of each hold to be tried out and bilges in good order (IMO, 2016) Bilges to be covered with burlap. The ventilation should be tried out Any damage in the cargo hold to be repaired (MCA, 2016) Hatch covers and entrance to the holds to be tried out for water tightness (PI, 2002) Hatch track ways to be cleaned (PI, 2002) All lighting arrangement in holds to be checked and any damaged or not workingÂÂ   ones to be replaced (MCA, 2016) Fire detection extinguishing system should be checked (STC, 2017) A thorough hold inspection to be carried out (PI, 2002) Crew should wear helmets, gloves, boiler suits, dust masks and gum boots at all time during cleaning process ,safety harness to be used when working aloft in the holds (MCA, 2016) DB tanks to be pressed to check if any leaks in the holds. Discharging of hold washing water should be carried out in accordance with MARPOL Annex V regulation 4.1.3 6.1.2 (IMO, 2011) Test entries to be logged down (STC, 2017) Any special requirements by the terminal, owners or flag state for hold preparation should be carried out. ADDITIONAL PREPARATION FOR SULPHUR CARGO Fresh water washing of holds to be carried out. (PI, 2002) (IMO, 2016) Fire line to be rinsed using fresh water from fresh water tanks using a GS pump. Once the line is flushed make sure that the anchor wash and all fire hydrants are shut (PI, 2002) Holds and bilges to be completely dry before loading (IMO, 2016) Electric equipments in holds nearby spaces should be intrinsically safe or if not then they should be isolated (IMO, 2016) Ventilators Spark arrestors to be inspected repaired if required (IMO, 2016) Bilge pumping arrangement shall be inspected for satisfactory operation lime washing should be done on tank top and lower sections of cargo spaces (IMO, 2016) Upper part of the hold shall have a sound coating of paint, if any paint has been pilled off then that area shall be painted (IMO, 2016) Any loos corrosion shall be removed (IMO, 2016) Machinery and equipments to be covered to protect it from small sulphur dust particles (IMO, 2016) ANSWER HAZARDS OF RAW SUGAR AND SULPHUR RAW SUGAR Sugar dissolve when comes in contact with water, this may result in formation of air pockets in the body of the cargo as the ship moves (IMO, 2016) (PI, SEPT 2006) It has a tendency of self heating/spontaneous combustion. It should be loaded well clear of places having source of ignition or heat Sugar has the tendency to absorb order (BMTSURVEYS, NOVEMBER 2013) Raw sugar gets contaminated (BMTSURVEYS, NOVEMBER 2013) Shrinkage or shortage of cargo due to loss of water vapour (BMTSURVEYS, NOVEMBER 2013) InsectÂÂ   may be formed in sugar which can lead to diseases (BMTSURVEYS, NOVEMBER 2013) Sugar ifÂÂ   melted may form sticky syrup like form (PI, SEPT 2006) Raw sugar has a distinct molasses smell that will spoil other cargoes (Thomas, n.d.) Raw sugar has a higher moisture than refined (Thomas, n.d.) SULPHUR Flammable and may have dust explosion during loading and unloading If catches fire emits harmful gases It reacts with sea water and produces corrosive acids and suffocating gases Sometime of granule sulphur behaves like grain which may result in shifting of cargo Dry sulphur does not react with bare steel, but wet sulphur (sulphur containing free water) is potentially highly corrosive (PI, 2002) When sulphur is loaded, any retained free water filters to the bottom of the holds during the voyage From there it is pumped out via the bilges (PI, 2002) Person may get a burning sensation in eyesÂÂ   when loading sulphur PRECAUTIONS WHEN LOADING AND DISCHARGING RAW SUGAR IN BULK Should be loaded away from the source of heat. NO SMOKING near the area of loading sugar (PI, SEPT 2006) The ships hold should be cleaned well before loading and should be free from any odour Proper PPE to be worn by crew at all the time Dust clouds should not be formed during loading Temperature and moisture contains of sugar to be monitored during loading and carriage and if required ventilation should be carried out to avoid caking Fermentation may result in formation of CO2 gas. Holds must be ventilated before entry and atmosphere to be checked (BMTSURVEYS, NOVEMBER 2013) Loading operation should not be carried out in case of rain Care must be taken to make sure that hot sugar is not loaded into a bulk carrier intended to sail through cold waters to its discharging port, as change in temperature establish within a cargo can result in moisture transfer, and this in turn can cause caking of the cargo (Thomas, n.d.) PRECAUTIONS WHEN LOADING AND DISCHARGING SULPHUR IN BULK Smoking and hot work shall not be permitted in cargo spaces and nearby area All spaces and storerooms adjacent to the cargo area should be properly ventilated and proper precautions should be taken when entering in cargo hold and atmosphere should be monitored A fine spray ofÂÂ   fresh water is used to keep the dust down The loader should be positioned properly to avoid formation of dust clouds Loading operation should not be carried out in case of heavy rain Proper trimming of cargo to be done Surface ventilation must be carried out as required duringÂÂ   the voyage Face mask and eye protection should be worn at all times Lime washing of the tank top to be carried out cargo holds and bilges do be completely dry to prevent corrosion The upper part of the hold should be painted and pilled of paint should be repainted to avoid corrosion (IMO, 2016) Protect the machinery and equipments from small dust particles of sulphur (IMO, 2016) If sulphur catches fire, it should be smothered with more sulphur or with a very fine spray of fresh water not salt water (Thomas, n.d.) There is danger of dust explosion with powdered sulphur during loading and whilst cleaning the holds of sulphur (Thomas, n.d.) The shipper is required to provided the information regarding the cargo to be loaded as per SOLAS 1974 Chapter VI Reg 2 and the IMSBC Code section 4.2. Shipper may deliver this declaration by fax or other electronic device. In any electronic device where the signature of the declaring party cannot be transmitted full name of the declarant in capital letters must be provided on the form (STC, 2017) Cargo information shall be confirmed in written and by suitable shipping document before loading (IMO, 2016) Document should contain following information. The BCSN (IMO, 2016) The group of cargo (IMO, 2016) IMO class of the cargo (IMO, 2016) The UN number if applicable (IMO, 2016) The total quantity of cargo to load (IMO, 2016) The stowage factor (IMO, 2016) If trimming required and the procedures for trimming (IMO, 2016) Angle of repose (IMO, 2016) If the cargo has a likelihood of shifting (IMO, 2016) Moisture content certificate (IMO, 2016) Transportable moisture limit value (IMO, 2016) If the cargo may form a wet base (IMO, 2016) Toxic or flammable gases emittedÂÂ   by the cargo (IMO, 2016) Flammability ,toxicity, corrosiveness of the cargo (IMO, 2016) Self heating properties of the cargo if any (IMO, 2016) Gases emitted if in contact with water if applicable (IMO, 2016) If the cargo has any radioactive properties (IMO, 2016) And other information required by the national authorities (IMO, 2016) Whether the cargo is harmful to the marine environment (IMO, 2016) Shipper details (STC, 2017) Transport document number (STC, 2017) Means of transport (STC, 2017) Place of loading (STC, 2017) Port of discharging (STC, 2017) Additional certificate like weathering certificate ,exemption certificate if applicable (STC, 2017) Human health criteria data (STC, 2017) To obtain the information require by the section 4 of IMSBC code the shipper need to get the cargo properly sampled and tested (IMO, 2016) When water is found cargo holds loaded with bulk cargo there are a many reasons and each should be taken into account (PI, 2017) (Thomas, n.d.) The water may be given out by the cargo or there is a leak in hatch covers. It may have entered through any access hatch or an open sounding pipe. Water may have sipped in through a crack in the deck or the hatch coming or through a damaged ventilator (PI, 2017) (Thomas, n.d.) Ship staffs should have an accurate idea of the capacity of the hold bilge wells i.e. the greatest value are the sounding of the bilge when full and the approximate tonnage of water contained by the bilge when full (PI, 2017) (Thomas, n.d.) Aboard a ship which is well maintained the possible cause for an increased hold bilge sounding is that water has drained from the cargo into the bilge. When water is drain from the cargo there are two key requirements. The water must be pumped out of the bilge and not allowed to flood the hold, and the tonnage of water removed must be logged. It is advisable to keep a record of the tonnage of water discharged from the hold bilges, as recommended by the UN Draught Survey Code24 and in some trades it is a charter party requirement (PI, 2017) (Thomas, n.d.) When soundings are found to be rising for no reason a problem must be suspected and the hold must be investigated for a leak. The accessibility to the hold will depend upon the quantity of cargo, speed of flooding, shifting cargo and dangerous gases. If the hold can be safely entered, taking all precaution for enclosed space entry it may be possible to find an explanation for the flooding. If the hold cannot be entered, a careful exterior inspection of the compartment in search for any fitting which is improperly closed or damaged. If the sounding is found to increase whenever the vessel ships water on deck, a leak at deck level should be suspected. If the flooding continues at the same rate, or an increasing rate, at all times it suggests that the damage is below water level (PI, 2017) (Thomas, n.d.) FOLLOWING ACTIONS TO BE CARRIED OUT Firstly find out the amount of water in the hold and the root cause of water ingress Carry out a risk assessment of the situation Check the sounding of the bilges ballast tanks ,fuel oil tanks, void spaces etc No cargo operation to be carried out in hold No1 until total assessment of situation carried out Stability of the ship to be checked If entry in hold is to be done then ventilate the holds and work permit to be issued Inform the terminal about the damage Calculate the total amount of cargo damaged Make a log book entry of all the events Make sure all man holds nut bolts full tight and gasket in good condition Check comings, booby hatch entrance and deck plaiting for leakage Make sure all the bilge valves are properly shut Do not allow anyone to take pictures of the hold without permission If cargo damage is found, contact PI correspondents and ask them to arrangement of a survey. Following information to be given to correspondents:- name of the vessel, date of the incident ,place of the incident , cargo particulars, quantity of damaged cargo, amount of the damage, location of cargo, bill of lading no, loading port, loaded quantity ,cause of the damage, contact details of the agent ETA/ETD of the vessel (PICLUBJAPAN, n.d.) Try to control further damage by taking all possible measures for lessening of damage unless such would involve a risk to the vessels safety (PICLUBJAPAN, n.d.) Take photos of the damaged cargo and the suspected causes (PICLUBJAPAN, n.d.) Log book entries like, sea conditions, weather and wind force (PICLUBJAPAN, n.d.) Sea protest should be filed at next calling port, if the damage was caused by bad weather (PICLUBJAPAN, n.d.) Make sure all time delays have been logged FOLLOWING PERSONS TO BE INFORMED Owners Charters and sub charters Manager Local agents Vessels insurance club e.g. PI DPA Technical superintendent of the ship Terminal Class of the vessel OTHER REFRENCES (Swedishclub, 2013) (PI, 2017) (WEST OF ENGLAND , n.d.)Q10 PROCEDURE FOR MAINTAINING THE CARGO LIFTING PLAN Regular maintenance should be carried out in order to keep the equipment in good order (MCA, 2006) (MCA, 2016) Inspection of the equipments should be carried out by a competent person. It should be carried out as required by the Regulations but in any event at least once annually (MCA, 2006) (MCA, 2016) Check for defects like cracks, corrosion and wear and tear that could affect SWL (MCA, 2006) (MCA, 2016) If in doubt about the equipment has , exceeding the Safe Working Load (SWL), or subjected to treatment likely to cause damage, it should be removed of service till a competent person carries out an examination (MCA, 2016) (MCA, 2006) Regular greasing of equipments to be carried out (MCA, 2006) The condition of all ropes and chains should be checked regularly and damaged once to be replaced .Shackles, links and rings should be renewed if damaged (MCA, 2006) Examine the structure for any damages (MCA, 2016) There should not be any trapped water inside the Gantries (MCA, 2016) Limit switch, stop botton, controls and brakes to be checked on regular basis (MCA, 2016) Makers specific parts to be used if any parts are to be replaced. Once any maintenance is done the equipment should be examined by a competent person before using it (MCA, 2016) Cranes: The annual inspections and periodical thorough examination shall be carried out. Inspection and maintenance should be carried out as per the Planned Maintenance schedule (PIUK, n.d.) The following things shall be inspected for signs of deformation, corrosion, cracks, etc Crane Jibs Winch and the foundation of the winch. Goose neck, blocks, shackles, hooks, spider bands etc Marking on the gear should be checked and clearly visible locking arrangements of all shackles and blocks to be inspected lubrication of all the parts should be carried out as per the lubrication plan in plan maintenance system All wires shall be inspected for any damages Hydraulic systems to be inspected for proper functioning Blocks: Annual inspection of blocks to be carried out. Responsible Ships officer should carry out periodic inspection of the blocks on a periodical basis. Carry out the inspection and maintenance as per the PMS (PIUK, n.d.) Following checks to be carried out Check for free movement of sheave heads and swivel Check grooves on sheave for wear and tear Check if any distortion or damage on side plate. Check for any play in the axel pin Check that the thread of the pin is in good order . Check split pin and Grease nipples and markings should not be painted . Lubrication to be carried out as per the lubrication chart Slings:(PIUK, n.d.) Slings should be annually inspected Responsible Officer should inspect it before use Periodic inspection should be carried out a per PMS During these inspections the following shall be checked:- Check if any broken strands, kinks and corrosion. Check rings, thimbles, for damages, deformity and corrosion. Slings should not be used if any signs of damage Lubrication as per the manufacturers Check the tags on sling and compare it with the certificate. A sling without a tag should not Wires: Wire ropes should be inspected regularly and replaced if stands broken, kinked, worn, or corroded. They should be lubricated and renewed as per the PMS Reference (MCA, 2016) (MCA, 2006) (STC, 2017) (PIUK, n.d.)

Effects Of Globalization On Business Education And Employment Economics Essay

Effects Of Globalization On Business Education And Employment Economics Essay There is a common saying that is being used today that goes The world today is a small village. This is as a result of the many economical, political and technological inventions and changes that have been in place in the recent past that have made improvement in communication, transport, and trade. These advanced technological advances have made it easy for individuals from different locations and regions in the world to invest in different locations in the world and this has resulted to globalization. Globalization is a process where a local society, culture, economy, or practice is integrated to surpass the local boundaries to a point were the local culture and economy reaches the people from other cultural backgrounds that arent from the same cultural background (Schifferes, par.3). These local regional practices are integrated internationally through the improved systems in the communication, transports and trade. These ensure that there is an improved communication, trade and transport mechanism that is the most effective organs that boosts globalization. Globalization has got some effects that accompanies some of the effects of globalization to the society includes positive and negative effects that it has on the economy, political and socio -cultural fields. This paper highlights the ways that globalization has affected the Business field, Education sector and Employment sectors. Employment is one sector amongst the many sectors that are affected by globalization; this sector is affected by globalization in two ways. These are positive and negative ways. In this section we are going to highlight on these effects of globalization in the employment sector beginning with the positive impacts. Globalization has improved the media coverage in the globe; this has led to sensitizing the people and enabled the people to know there rights. It has also lead to the creation of many employment opportunities that are varied. For example, the employment of the media personality, the introduction of the international Non Governmental Organizations (NGO), and other innovative groups that will in some point create the employment opportunities (Tutor2u, par.4). Globalization has resulted to the growth of employment opportunities in the various countries especially in the developing worlds. The most notable multinationals companies that have shifted their production to developing countries includes the Finland multinational company Nokia moving to Asia where there is cheap labour and plenty raw materials thus providing employment opportunities to the locals of the countries (Tutor2u, par.5). Globalization has also improved employment opportunity through the introduction of expatriate employment. These are cases where people are employed in other regions that arent there native and provide expert roles to the companies that they are employed. For example is the way the diplomats are deployed in various countries to represent there countrys interest in the country that they are deployed (Tutor2u, par.4). Globalization has also resulted to the growth of employment, because it has produced equal room for competition among the local and multinational companies. This is for the reason that there is equal room that will ensure that the companys will be in a position of getting a straight market for there products. This will result to the development of companies enhancing competition and the companies will employ the people to work in the industries. For the negative aspects, globalization also renders many people jobless especially in the developed worlds. Consequently, making the people from the developed world jobless; on the other hand, the once in the developing world are employed in these multinational companies (Tutor2u, par.2). Globalization has positively and negative affects the education sector, some ways in which education is positively affected is the by the technological improvements that led to the introduction of the internet, social media, global information and telecommunication systems. These improvements have positively affected the education system as the students can learn from there rooms or in a place that has internet access. Thus making education easy and interesting to the students as it is more interactive compared to the way it was initially (Chinnammai, p.3). Globalization has also resulted to internationalisation of the education system this is where the student can be in a position to learn what is being taught in another region in the world. This is because of the system that is aimed at making the students in the region to be with the same education that is accepted universally. For this reason, the students in the high schools and universities engage in other university transfers thus making them to be diverse in their respective area of specialization. The students know the ways in which the other regions are well and what they experience thus exposing the students to the different environmental settings of the people (Schifferes, par.5). The invention of electronic equipments and good storage facilities has resulted to the improvement of education in the world. This is because the students can be able to reach all the relevant materials that are necessary for their education (Chinnammai, p.2). In that they will be in a position to get the necessary information they need in class as they will be in soft copy and posted by the teacher in the internet. Thus each student will be able to access the information easily without any problem. This will improve the education system as the students will be in a position to pass their final examinations as they will be in a position to deliver in there class works. Therefore, education has also made interesting as a result of globalization. This is because the teaching and standard that are provided by these companies will be improved thus improving education of these groups (Chinnammai, p.4). Globalization has positive and negative effects on business, some of the positive effects is when it provides equal opportunity for companies to advertise their products and thrive in the world market. The improved communication facilities has made it easy for the companies to reach their respective customers world wide; thus providing equal room for businesses and other business opportunities to thrive in these regions. Globalization has also resulted to improved quality and production by the companies and this has made the consumer have value for their money ([emailprotected], par.4). This is experienced when the companies that are producing the same products aims at making the best quality of their products than there competitors. For example the mobile phone companies that are mostly competing in making the best products thus make the customers have a wide range of choice when buying a phone (Schifferes, par.2). Globalization has also resulted to the rapid development of the developing countries thus improving the lives of the countries citizens and at the same time reducing the gap between the poor and the rich. For instance in countries like India, Brazil, Thailand, Singapore, Argentina and China among others developing companies, that have turned out to become countries whose economy are rising faster. This is because of the many multinational industries set their base in these countries and in the process these companies and countries mutually benefiting from each other. Thus helping the country economy to grow thus ensuring that the countries economy grow steadily ([emailprotected], par.2). Globalization has resulted to the globalization of the world markets; this is when the producers of the products have shifted their attention in producing products that are suitable for the specific markets. The multinationals will evaluate at the requirements of the people in which it has set its camp. This will make the company check on the likes and dislikes of the people in these regions and from that make products that are well appreciated with the locals. Also the companies get increased returns in the form of there increased sales, an example is when the General Motors GM looks at the likes of the Indian market and from the evaluation the make a vehicle that goes in an Indian name this automatically appealing to the Indian motor vehicle buyers (Tutor2u, par.1). Globalization has also played a leading role in killing of the local industries in the developing countriesThus making it difficult for the companies to survive thus the collapse and cease to survive due to lack of support from its citizens (Schifferes, par.4). Its evident that globalization has also as well resulted to the degradation the natural reserves in the third world countries and this has resulted to reduced economy of the countries and a the same time making the population of the people to be more poorer (Tutor2u, par.2). Globalization has also resulted to the difficulty of the third world companies to take care of there increasing population; this is because the companies products are sold at low costs. This eventually makes the government collect low revenue which is inform of taxes (Tutor2u, par.4). This result to the country resorting to borrowing from the developed worlds and the donors that will help the country sustain itself. As a result, the country becomes imprisoned with debts that it cant relieve itself from; thus making it difficult for these developing countries to benefit from the global trade as they are denied the room of expanding and at the same time they are exploited with the multinational companies. Work Cited [emailprotected] Effects of Globalization on Indian Industry http://business.mapsofindia.com/globalization/india-industry/ Chinnammai, Singh. Effects of Globalisation on Education and Culture, 2005 Schifferes, Steve. Globalisation shakes the world, 2007. Tutor2u, globalisation and business effects on business 2010

Review of Research Paper on Cold Perecption via TRPM8 -- Biology Nerve

Introduction: The first reaction to a minor wound or sprain is to apply ice. Cold's analgesic effects are a profound and under appreciated phenomenon. The nerve providing the sensation we know as cold acts to inhibit the "pain pathway." This wonderful nervous pathway is called TRPM8. This study indicates that the ion channel called "transient receptor potential melastatin 8", or TRPM8, is a primary component of cold sensation. Cultured nerve fibers devoid of this ion channel have considerably less response to the sub-ambient temperatures and cold-simulating chemicals that these nerves normally respond to fervently. Mice that have been genetically deprived of the TRPM8 channel also display a noticeable decrease in non-noxious cold sensitivity. Essentially without this component of the nerve, mice don’t notice mild cold, and actually have no particular preference to warmth. This appears to be true only for non-noxious temperatures (roughly above 12C in this case). Below that threshhold, it is thought that cold is perceived by thermal nociceptors as pain due to the extreme and potentially harmful aspects of severe cold. Methods: The analysis of this ion channel was observed on both the cellular and behavioral perspectives in an attempt to identify the biochemical properties and characteristics of the channel and the ramifications thereof in a model organism. Methods: Gene Deletion Overview: Gene Deletion: The researchers deleted a significant portion of the TRPM8 gene. This was done through PCR, digestion, and ligation, effectively stopping the production of TRPM8 ion channel. PCR or polymerase chain reaction is a process which uses enzymes and primers to amplify or modify a DNA sequence. Deletion is accomplished by ... ...ficient, producing concurrent and decisive data. TRPM8 plays a vital role in sesation of its temperature range. These observations lead to the fact that all senastion is a balance of multiple pathways. Any perceived stimulus is actually a complex combination of neurons all being stimulated differently and decifered by the brain. So when one is exposed to cold, the sensory cortex is actully receiving stimulus of the absence of heat, the pain, the local vascular changes, and cold each delivered by a specific neuron. This must be true for all sensations. Further definition of this fact could lead to break throughs in pain management, virtual reality, artificial flavor and scent stimulation, physical therapy or perhaps futuristic massage devices. Sources Nature magazine article "The menthol receptor TRPM8 is the principal detector of environmental cold "

English Should be the National Language Essay examples -- Should Engli

From the time the Pilgrims landed in this great nation at Plymouth Rock, immigrants have been culturally diverse and have spoken many languages. When the Pilgrims arrived in the New World, they did not know how to communicate with the natives. Through intense study the natives learned the Pilgrims’ language. Even with the common language they were still a melting pot of different culture. Some would say that America has gotten over the language/ cultural barriers and now almost everyone speaks the common language of English, but there are still many immigrants who do not know English. Bilingual education is put into public schools for this reason, so that immigrant children can be assimilated to English gradually. The national language should be English instead of the official language because America has prided herself in being very diverse. If we take away the diversity, then we take away the core values that America has always had since her founding. Just as the Native Americans had to learn English from the Pilgrims, immigrant children need bilingual education to help them learn English. Everyone expects the immigrants to be able to speak English immediately, but that is rarely the case; they need time to learn our culture. In order for immigrants to succeed in this nation it is recommended that they learn English and every American should try to help them learn it. By immigrant children learning English through bilingual education they not only get keep their culture, but also learn the language to help them become successful in America. The Encyclopedia of Education says, â€Å"In most areas of the United States approximately 70 percent of the native-born currently are adopting English as their usual language† (Glenn). This ... ...nal language instead of the official language. Works Cited 1. CIlheran, Patrick. "YouTube - Obama; Americans Learn Spanish! I'm Embarrassed." YouTube – Broadcast Yourself. 10 July 2010. Web. 30 Mar. 2011. . 2. GLENN, CHARLES L. "Immigrant Education." Encyclopedia of Education. Ed. James W. Guthrie. 2nd ed. Vol. 4. New York: Macmillan Reference USA, 2002. 1097- 1106. Gale Opposing Viewpoints In Context. Web. 14 Mar. 2011 3. "Language Acquisition | Grantmakers Concerned with Immigrants and Refugees – GCIR." Welcome | Grantmakers Concerned with Immigrants and Refugees - GCIR. 2008. Web. 17 Mar. 2011. . 4. U.S. English Inc. "States with Official English Laws." U.S. English. 2011. Web. 17 Mar. 2011. .

Death be not Proud and Do Not Go Gentle Into That Good Night :: Do Not Go Gentle into That Good Night

Death is an aspect of life that everyone becomes acquainted with sooner or later.   From my own experiences I am more familiar with death than I could ever want to be.   Poetry is something that is very difficult for me to follow, but when it deals with concept that I am familiar with, then I am able to associate with the soul of the writer.   Two poems that deal with the concept of death that I actually enjoyed reading and will compare to each other are "Death be not proud" by Dylan Thomas and "Do Not Go Gentle Into That Good Night" by Dylan Thomas.   Firstly, in "Death be not proud," Donne tells Death that it is not anything special.   That Death is a low being that deals with the pitiful aspects of life: war, disease, and murder.   Donne says that Death is nothing more than an aspect of life, just an event of the moment, "one short sleep past, we wake eternally."   Donne goes on to explain that we all will go through this door while on the way to another existence.   In comparison, "Do Not Go Gentle Into That Good Night" by Thomas is a battle cry against death.   To fight against it until the last breath of life is gone.   That to give up life is the coward's way.   To his father, who is dying from a protracted illness, Dylan says to show his love, that it is all right to cry even though he has never seen his father show the weakness of crying, just so long as he continues to fight against the coming end.   In both poems, the writers are against Death; however Donne writes of Death as a weak entity that has no real power, because after we die, we will never have to face the worry of Death.   Thomas, however, writes as if he doesn't believe in any kind of hereafter.   An example of this is the repeated cry "Rage, rage against the dying of the light."   These are two very different beliefs for an ineludible fact of life.   Death is something that I have faced and will eventually succumb to;

Samenvatting Managerial Economics

chapter 1. introduction to managerial economics 1. what is managerial economics? Managerial economics = the science of directing scarce resources to manage effectively > each needs to understand how they can influence the demand through price and advertising, what is the best organizational architecture and how to compete Differences between ‘new’ and ‘old’ economy * Network effects in demand = the benefit provided to any user depends on the total number of other users * Scalability = the degree to which the scale and scope of business can be increased without a corresponding increase in costs Public good = one person’s consumption does not reduce the quantity available to others Branches Managerial economics: * Competitive markets * Market power * Imperfect markets 2. preliminaries scope (omvang) Microeconomics = the study of individual economic behavior where resources are costly > how consumers respond to changes in prices and income, †¦ Manag erial economics more limited scope = it is the application of microeconomics to managerial issues Macroeconomics = focuses on aggregate economic variables considers economic aggregates directly rather than as the aggregation of individual consumers and businesses methodology Fundamental premise = individuals share common motivations that lead them to behave systematically in making economic choices > a person who faces the same choices at two different times will behave in the same way at both times > it is systematic so it can be studied Economic model = a concise description of behavior and outcomes = abstraction Models are constructed by inductive reasoning > afterwards, the model should be tested arginal vis-a-vis average Marginal value = the change in the variable associated with a unit increase in a driver Average value = total value of the variable divided by the total quantity of a driver > relation between the marginal and average values depends on whether the average value is decreasing, constant or increasing with respect to the driver Stocks and flows Stock = quantity at a specific point in time Flow = the change in a stock over some period of time > measured in units per time period other things equal = an approach to simplify the problem by analyzing each change separately, holding other things equal . timing Two types of models * Static models = describe behavior at a single point of time, disregard differences in the sequences of actions and payments > model of competitive markets, analysis of organizational architecture * Dynamic models = focus on the timing and sequence of actions and payments = receipts and expenditures often occur at different times discounting Investments = using resources at some times in order to receive benefits at other times > discount future values to that they can be compared with the present Net present value the sum of the discounted values of a series of inflows and outflows over time = represents the current val uation of a flow of dollars time Internal rate of return = alternative for the net present value without using the discount rate 4. organization organizational boundaries Vertical boundaries = delineates activities closer to or further from the end user Horizontal boundaries = defined by its scale and scope of operations * Scale = rate of production or delivery of a good or service * Scope = refers to the range of different items produced or delivered individual behavior businesses are managed by individuals and their interests may diverge from those of the organization > managers are subject to bounded rationality Standard assumption = people make decisions rationally = individuals choose the alternative that gives them the greatest difference between value and cost > their behavior will follow some predictable patterns based on what they judge to be in their best interest People do not always behave rationally > reason: bounded rationality = people have limited cognitive bilities and cannot fully exercise self-control = people adopt simplified rules for decision-making * Separate accounting for different categories of benefits and cost * Lack self-control = addictive behavior and difficulty postponing immediate gratification for longer-term benefits. * More sensitive to loss than to gain = risk averse * Decisions may depend on how choices are framed Two implications: * Individuals will be relatively sluggish in responding to changes in business and economic conditions * Role for managerial economics is larger . markets Market = consists of the buyers and sellers that communicate with one another for voluntary exchange > not limited to any physical structure of particular location * Markets for consumer products = buyers are households and sellers are businesses * Markets for industrial products = buyers and sellers are businesses * Markets for human resources = buyers are businesses and sellers are households Industry = businesses engaged in the production o f delivery of the same or similar items competitive markets = markets with many buyers and many sellers Buyers provide the demand and sellers provide the supply demand-supply model = describes the systematic effect of changes in prices and other economic variables on buyers and sellers >describes the interaction of these choices market power Key variables: * Prices * Scale of operations * Input mix = determined by market forces Market power = ability of a buyer or seller to influence market conditions A business with market power must determine its horizontal boundaries = depends on how its costs vary with the scale and scope of operations Four key tools in managing demand: 1. Price 2. Advertising 3.Policy toward competitors 4. R&D expenditure Imperfect markets Imperfect Market = when one party directly conveys a benefit or cost to others and where one party has better information than others > managers need to resolve the imperfection 6. global integration Price in one local market will be independent of prices in other local markets > some markets are global because the costs of communication and trade are relatively low = the prince in one place will move together with the prices elsewhere > whether a market is local or global, same managerial economics principles ommunications costs and trade = with developments in technology and deregulation Transport: * air transport liberalization * containerization of surface transport. Telecommunications: * de-regulation. * scale economies in bandwidth. Growth of cross-border trade and investment: * falling trade barriers. * falling financial barriers. * falling communications cost managers have to pay increasing attention to markets in other places outsoarcing = the purchase of services or supplies from external sources > external sources could be within the same country or foreign E-commerce Limitations: * Payments system Trade barriers * Shipment costs part 1: competitive markets chapter 2. demand 2. individual dem and Individual demand curve = a graph that shows the quantity that the buyer will purchase at every possible price construction = other things equal, how many would you buy at a price of – – ? > important to keep other things equal there the decision may depend on other factors * Vertical axis is the price * Horizontal axis is the quantity Two views: * For every possible price, demand curve shows the quantity demanded * For each unit of item, demand curve shows the maximum price that the buyer is willing to pay slope at a lower price, buyers are willing to buy a larger quantity Marginal benefit = the benefit provided by an additional unit of the item Diminishing marginal benefit = each additional unit of consumption or usage provides less benefit than the preceding unit > the price that an individual is willing to pay will decrease with the quantity purchased preferences Two implications: * The demand curve will change with changes in the consumer’s preferences * Different consumers may have different preferences and hence different demand curves 3. emand and income Demand curve does not explicitly display the effect of changes in income and other factors that affect demand income changes = effect of a change in income on the demand curve is very different from that of a change in price > if income drops = demand curve shifts to the left * Change in price = movement along the demand curve * Change in income or any factor other than the price = shift in the entire demand curve normal vis-a-vis inferior products Normal product = positively related to changes in the buyer’s income Inferior product negatively related to changes in the buyer’s income >demand falls as the buyer’s income increases Broad categories of products = tend to be normal Particular products within the categories = may be inferior 4. other factors in demand = prices of related products, advertising, durability, season, weather and location complements and substitutes Complements = if an increase in the price of one causes the demand for the other to fall Substitutes = if an increase in the price of one causes the demand for the other to increaseShift to the left: * Increase in the price of a complement * Fall in the price of a substitute Shift to the right * Increase in the price of a substitute * Fall in the price of a complement advertising Informative advertising = communicates information to potential buyers and sellers Persuasive advertising = aims to influence consumer choice An increase in advertising expenditure will increase demand > each additional dollar spent on advertising has a relatively smaller effect on demand = diminishing marginal productEffect of advertising on demand depends on the medium durable goods = provide a stream of services over an extended period of time > buyers have discretion over the timing of purchase Three significant factors for demand: 1. Expectations about future prices and incomes 2. Inter est rates = many buyers need to finance their purchase of durable goods > if interest rates are low the demand for durables will be higher 3. Price of used models = substitutes of a new model 5. market demand Market demand curve graph that shows the quantity that all buyers will purchase at every possible price = analysis is essentially similar to that for an individual demand curve construction = interview all the potential consumers and ask each person the quantity that he er she would buy at every possible price = horizontal summation of the individual demand curves = slopes downwards since the individual demand curves slope downwards other factors = buyers’ income, price of related products, advertising > changes in these factors will shift the entire market demand curveTwo ways of measuring income of country: * The gross national product (GNP) = GDP + net income from foreign sources * The gross domestic product (GDP) = measure the total amount produced in a country for a given year Macro factors: * Income = average, distribution * Demographic = population, age structure, urban-rural * Cultural-social income distribution = the more uneven the distribution of income, the more important it is to consider the actual distribution of in income and not merely the average income when estimating the market demand 6. buyer surplus benefit Marginal benefit maximum amount of money that the buyer is willing to pay for the unit Total benefit = benefit yielded by all the units that the buyer purchases benefit vias-a-vis price Buyer surplus = difference between a buyer’s total benefit from some quantity of purchase and the actual expenditure > a buyer must get some surplus, otherwise he or she will not buy = maximum that a seller can charge is the buyer’s total benefit price changes Gains from a pricecut: * Lower price on the quantity that she would have purchased at the original price = infra marginal units She can buy more = marginal units > extent depends on the buyer’s response to the price reduction = the greater the increase in purchase, the larger the buyer’s gain from the price reduction = when you have to calculate how much you gain from a price cut, always look at the demand curve and see how much you buy at the old price and how much at the new price and calculate the buyers surplus package deals and two-part pricing Package deals = charge buyer just a little less than her/his total benefit = leave buyer with almost zero surplusTwo-art pricing = pricing scheme comprising a fixed payment and a charge based on usage = enables to soak up most of the consumer’s buyer surplus Market buyer surplus = sum of individual buyer surpluses 7. business demand inputs Businesses do not purchase goods and services for their own sake > use them as inputs in the production of other goods and services = use inputs to produce outputs for sale to consumers or other businesses * finished/semi-finished components â€⠀œ. * raw materials and energy. * labor and other services. capital. Demand Demand for inputs depend on: * quantity of final output = shift of the entire demand curve * prices of complements or substitutes in production Marginal benefit = the increase in revenue arising from an additional unit of the input > diminishing marginal benefit = downward sloping demand curve for inputs chapter 3. elasticity 1. introduction Elesticity of demand = measures the responsiveness of demand to changes in an underlying factor (price, income, advertising) Own-price elasticity of demand measures the responsiveness of the quantity demanded to changes in the price of the item 2. own-price elasticity = percentage by which the quantity demanded will change if the price of the item rises by 1% Percentage change in quantity demanded Percentage change in price construction Two ways of deriving: * arc approach = we collect records of a price change and the corresponding change in quantity demanded > own-pric e elasticity as the ratio of the proportionate change in quantity demanded to the proportionate change in price can also be calculated by changing p0 by the average price ((old price + new price)/2) and by changing q0 by the average quantity ((old quantity + new quantity)/2) * point approach = can be derived from the coefficient of price in the equation = calculates the elasticity at a specific point on the demand curve – arc approach: elasticity between two points properties Characteristics: * It’s a negative number * A pure number, independent of units of measure * Ranges from 0 to negative infinity Price elastic if a 1% increase in price leads to more than a 1% drop in quantity demand = if a price increase causes a proportionately larger drop in quantity demanded Price inelastic = if a 1% price increase causes less than 1% drop in quantity demand intuitive factors Availability of direct or indirect substitutes = the fewer substitutes that are available, the less ela stic will be the demand > Demand for a product category will be relatively less elastic than demand for specific products within the category = there are fewer substitutes for the category than for specific products Buyer’s prior commitments Learning * Complementary purchases (spare parts, upgrades, †¦) * Taste = demand less elastic Benefits/costs of economizing = buyers have limited time to spend on searching for better prices > they focus attention on items that account for relatively larger expenditures > separation of buyer and payee elasticity and slope Own price elasticity = describes the shape of only one portion of the demand curve > a change in price, by moving from one part of a demand curve to another part, may lead to a change in own-price elasticity Straight line demand curve demand becomes more elastic at higher prices > incase of other shapes, demand may become less elastic at higher prices Steeper demand curve means demand less elastic = but elasticity is not the same as the slope > slope stays the same, the own-price elasticity varies throughout the length causes by the changes in price and quantity Own-price elasticity can also vary with changes in any of the other factors that affect demand = in that case, demand curve will shift > own-price elasticity may also change 3. forecasting quantity demanded and expenditure expenditure change in price will affect expenditure through the price itself as well as through the related effect on quantity demanded Change in quantity demanded = price elasticity x change in price If demand elastic, price increase leads to * proportionately greater reduction in purchases. * lower expenditure. If demand inelastic, price increase leads to * proportionately smaller reduction in purchases. * higher expenditure. accuracy Discrepancy = the own-price elasticity may vary along a demand curve > the forecast using the own-price elasticity will not be as precise as a forecast directly from the demand curve . other elasticities income elasticity = measures the sensitivity of demand to changes in buyers’ income = percentage by which the demand will change if the buyer’s income rises by 1 % Percentage change in demand percentage change in income = varies with changes in the price and any other factor that affects demand * Depending on whether the product is normal or inferior, income elasticity can be positive or negative * Demand for necessities tends to be relatively less income elastic than the demand for discretionary items cross-price elasticity measures the sensitivity of demand to changes in the prices of related products = percentage by which the demand will change if the price of the other item rises by 1%, other things equal Substitutes = an increase in the price of one will increase the demand for the other = cross-price elasticity positive Complements = an increase in the price of one will reduce the demand for the other = cross-price elasticity negative advertis ing elasticity measures the sensitivity of demand to changes in the sellers’ advertising expenditure = percentage by which the demand will change if the sellers’ advertising expenditure rises by 1%, other things equal > price of the item must remain unchanged > has a much stronger effect on the sales of an individual seller than on the market demand = advertising elasticity of the demand faced by an individual seller tends to be larger than the advertising elasticity of the market demand forecasting the effects of multiple factorsOnly way to discern the net effect of factors pushing in different directions = use the elasticities with respect to each of the variables Percentage change in demand due to changes in multiple factors is the sum of the percentage changes due to each separate factor 5. adjustment time The short run = a time horizon within which a buyer cannot adjust at least one item of consumption or usage The long run = a time horizon long enough for buyers to adjust all items of consumption of usage nondurables the longer the time that buyers have to adjust, the bigger will be the response to a price change > demand for such items will be more elastic in the long run than in the short run Alcohol and tabacco = demand relatively inelastic > discouraging new people from taking up smoking and drinking = demand relatively more elastic in the long run durables = a countervailing effect leads demand to be relatively more elastic in the short run > especially strong for changes in income = drop in income will cause demand to fall more sharply in the short run than in the long runDifference between short- and long-run elasticities = depends on a balance between the need for time to adjust and the replacement frequency effect 6. estimating elasticities data Two sources of data: * Records of pas experiences * Surveys and experiments specifically designed to discover buyers’ preferences > test market Collection in two ways: * Focus on a p articular group of buyers and observe how their demand changes as the factors affecting demand vary over time = time series Compare the quantities purchased in markets with different values of the factors affecting demand = cross section specification To obtain accurate estimates of elasticities = specify all the factors that have a significant effect on demand > specify the mathematical relationship between demand and the various factors Dependent variable = whose changes are to be explained Independent variable = a factor affecting the dependent variable = linear equation in which the dependent variable is equal to a constant plus the weighted sum of the independent variables ultiple regression = can estimate the separate effect of each independent variable on the dependent variable = aims to determine values for the constant and the coefficients Residual = the actual value of the dependent variable minus the predicted value Method of least squares = based on the view that positiv e residuals are as bad as negative residuals while large residuals are disproportionately bad > seeks a set of estimates for the constant and the coefficients to minimize the sum of the squares of the residuals since equally large positive and negative residuals have identical squares, the method treats them identically statistical significance F statistic = measures the overall significance of the independent variables > assumption that there are is no relationship between the dependent variable and the set of independent variables > ranges from 0 to infinity R? = uses the squared residuals to measure the extent to which the independent variables account for the variation of the dependent variable > ranges from 0 to 1 1 means that all the residuals are exactly 0 T-statistic = used to evaluate the significance of a particular independent variable = estimated value of the coefficient divided by the standard error > ranges from negative to positive infinity P value = measures the like lihood that estimated coefficient could be the result of chance under the assumption that the true coefficient is zero = gives the probability that random sampling errors could produce a coefficient as large as found by the least-squares multiple regression model chapter 4. supply . short-run costs Two key decisions: * Continue in operation * Rate at which to operate = depend on the length of the time horizon Short run = time horizon in which a seller cannot adjust at least one input > business must work within the constraints of past commitments Long run = time horizon long enough for the seller to adjust all inputs Difference between both depends on the circumstances fixed vis-a-vis variable costs Fixed cost = cost of inputs that do not change with the production rate > the height of the total cost curve at the zero production rate Variable cost cost of inputs that change with the production rate > to distinguish between fixed and variable costs, a business must analyze how each c ategory of expense varies with changes in the scale of operation Total cost = the sum of fixed cost and variable cost C = F + V Marginal cost = the change in total cost due to the production of an additional unit Average cost = total cost divided by the production rate = unit cost Cq = Fq + Vq > continues to fall with increases in the production rate until it reaches a minimum, thereafter it increases with the production rate the average cost is the average fixed cost plus the average variable cost > if the production rate is higher the fixed cost will be spread over more units Marginal product = increase in output arising from an additional unit of an input > diminishing = the average variable cost will increase with the production rate Where the average variable cost is increasing the relationship between the average cost and the production rate depends on the balance between the declining average fixed cost and the increasing average cost Diminishing marginal product causes margi nal and average cost to rise echnology Two implications: * The curves will change with adjustments in the seller’s technology * Different sellers may have different technologies and hence different cost curves 3. short-run individual supply Assumptions * profit maximization * Business is so small relative to the market that it can sell as much as it would like at the going market price production rate Total revenue = price multiplied by sales Marginal revenue = the change in total revenue arising from selling an additional unit To maximize profit, a business should produce at that rate where its marginal revenue equals its marginal costMarginal revenue is represented by the slope of the total revenue line * Wherever the marginal revenue exceeds the marginal cost, the profit can be raised by increasing production * Wherever the marginal revenue is less than the marginal cost, Luna can raise profit by reducing production break even To decide whether to continue production, the business needs to compare the profit from continuing in production with the profit of shutting down Fixed cost = sunk cost = it has been committed and cannot be avoided > even if the business shuts down, it must still pay the fixed cost F Business should continue production whenR – V – F > – F = R > V P > V/q > R = p x q = short-run break even condition > a business maximizes profit by producing at the rate where the marginal cost equals the price, provided that the price covers the average variable cost individual supply curve Individual supply curve = a graph showing the quantity that one seller will supply at every possible price > for every possible price, a business should produce at the rate that balances it marginal cost with the price Slopes upward = if the seller is to expand production, then it will incur a higher marginal cost Input demandChange in input price: * Shift in marginal cost * Change in profit-maximizing production 4. long-run individual su pply = contracts expire and investments wear out > all inputs become avoidable long-run costs = long-run average cost curve is lower and has a gentler slope > in the long run, the seller has more flexibility in adjusting inputs to changes in the production rate = it can produce at a relatively lower cost than in the short run, when one or more inputs cannot be changed production rate = a rate where its marginal cost equals the price of its output reak even = in the long run, a business should continue in production if the maximum profit from continuing in production is at least as large as the profit from shutting down All costs are avoidable = it the business shuts down, it will incur no costs and so its profit from shutting down is nothing R > C P > C/q = business should continue in production so long as total revenue covers total cost individual supply curve = that part of its long-run marginal cost curve, which lies above its long-run average cost curve Two views: * For every po ssible price, it shows the production rate For each unit of item, it shows the minimum price that the seller is willing to accept 5. market supply Market supply curve = a graph showing the quantity that the market will supply at every possible price = sum of the quantities supplied by each individual seller short run Market supply curve = begins with the seller that has the lowest average variable cost Change in an input price will affect the seller’s marginal cost at all production levels > shift the entire market supply curve * Increase in price of an input will shift the market supply up * Reduction in price of an input will shift the market supply down long run every business will have completely flexibility in deciding on inputs and production > freedom of entry and exit is the key difference between the short run and long run Sellers that cannot cover their total costs will leave the industry until all the remaining sellers break even > an industry where businesses van make profits will attract new entrants = market supply will rise and pushes down the market price hence the profit will drop Quantity supplied will adjust in two ways when there’s a change in price: * All existing sellers will adjust their quantities supplied along their individual supply curves * Some sellers may enter or leave the market Graph = slope is more gentler and may be flat 6. seller surplus price vis-a-vis marginal cost Seller surplus difference between a seller’s revenue from some quantity of production and the minimum amount necessary to induce the seller to produce that quantity > short-run seller surplus can also be defined as the difference between the seller’s revenue and the variable cost Short-run seller surplus = total revenue less variable cost Long-run seller surplus = total revenue less total cost purchasing = a buyer can apply the concept of seller surplus to reduce the cost of its purchases market seller surplus = sum of the individual seller surpluses = difference between the market revenue from some production rate and the minimum amount necessary for the market to produce that quantity 7. elasticity of supply measures the responsiveness of supply to changes in underlying factors such as the price of the item and inputs price elasticity = measures the responsiveness of the quantity supplied to changes in the price of the item = percentage by which the quantity supplied will change if the price of the item rises by 1%, other things equal Percentage change in quantity supplied Percentage change in price properties * Pure number * Positive number intuitive factors Intuitive factors: * Capacity utilization > a seller that has consiverable excess capacity will step up production in response to even a small increase in price = individual supply will be relatively elastic * Adjustment time long-run supply is relatively more elastic than the short-run supply chapter 5. competitive markets 2. perfect competition Five con ditions: 1. The product is homogeneous 2. There are many buyers, each of whom purchases a quantity that is small relative to the market 3. There many sellers, each of whom supplies a quantity that is small relative to the market 4. New buyers and sellers can enter freely, and existing buyers and sellers can exit freely 5. All buyers and sellers have symmetric information about market conditions homogeneous product = the product is always the same > competition is stronger many small buyers = no buyer can get a lower price than others > all buyers face the same price all buyers compete on the same level playing field When some buyers have market power it is not possible to construct a market demand curve many small sellers = no seller has market power > no seller can get a higher price than other free entry and exit = no technological, legal or regulatory barriers constrain entry or exit > the market price cannot stay above a seller’s average cost for very long > degree of com petition also depends on barriers to exit = it must consider the exit cost when deciding whether to enter the market symmetric information = no seller can enjoy the privilege of secret information 3. market equilibrium the price at which the quantity demanded equals the quantity supplied > when market out of equilibrium, market forces pushes price towards equilibrium demand and supply At the market equilibrium, there is no tendency for price, purchases or sales to change excess supply Not in equilibrium = market price will tend to change in such a way as to restore equilibrium Excess supply = the amount by which the quantity supplied exceeds the quantity demanded > suppliers would compete to clear their extra capacity and the market price would drop back toward the equilibrium excess demand = the amount by which the quantity demanded exceeds the quantity supplied > when the price is below the equilibrium level buyers would compete for the limited capacity significance of equilibrium Two reasons: * If a market is not in equilibrium, either buyers or sellers will push the market toward equilibrium * By comparing equilibria we can address a wide range of questions > when prices are quite flexible, the market will adjust to the new equilibrium fairly quickly, so comparing equilibria is a fairly accurate method of analysis Neither buyers nor sellers may face rationing 4. supply shift equilibrium change When price of input falls >entire supply curve shifts down = at every possible sellers want to supply more price elasticitiesDownward or upward shift in the supply curve will change the equilibrium price by no more than the amount of the supply shift > change in equilibrium price depends on the price elasticities of demand and supply Inelastic demand = buyers are completely insensitive to the price > when supply curve shifts, the buyers do not change their behavior = they continue to purchase exactly the same quantity Elastic demand = buyers are extremely sensitive t o price > equilibrium price does not change at all If the demand is more elastic then the change in the equilibrium price result from a shift in supply will be smaller Inelastic supply = sellers are completely insensitive to the price > if their costs change they will not change the quantity supplied Elastic supply if the cost of an input changes, the marginal cost changes by the same amount at all production levels common misconception = if sellers’ costs fall by some amount, then the market price will fall by the same amount Overlooks the impact of: * The shift in supply on buyers = if they are very sensitive to price, the shift in supply would result in no change to the equilibrium price * The price sensitivity of sellers = if sellers are insensitive to price, then the drop in cost will not induce them to sell more Price change * Smaller if demand is more elastic than supply * Bigger if supply is more elastic than demand 5. demand shiftDemand shifts down (left) > new equil ibrium with lower price and lower quantity Demand shifts up (right) > new equilibrium with higher price and higher quantity 6. adjustment time short-run equilibrium = point where its short-run marginal cost equals the marketprice long-run equilibrium = the point where its long-run marginal cost equals the market price demand increase Short-run equilibrium = the extent to which a seller expands its operations depends on the slope of its short-run marginal cost curve > if steep then the price increase will not lead the seller to expand operations by very much Long-run equilibrium = there is enough time for all costs to become avoidable, for new sellers to enter the market and for existing sellers to leaveThe increase in demand raises the market price and hence each seller’s profit = will attract new sellers to enter the market Although the price is higher than in the original equilibrium, higher input prices result in higher marginal and average cost curves > in the new long-ru n equilibrium, each individual seller just breaks even demand reduction Extent of cutback depends on two factors: * Extent of sunk costs = in an industry involving substantial sunk costs, the reduction in demand will translate into a relatively large drop in price and a small reduction in quantity * Slope of the seller’s short-run marginal cost curve in the new long-run equilibrium there will be a smaller number of sellers and each will exactly break even with average total costs equal to the market price price and quantity over time Two general points: * In response to shifts in demand = market price will be more volatile in the short run than the long run * In response to shifts in demand = there is a greater change in the market quantity over the long run than in the hort run In industries with substantial sunk costs the adjustment of production will be concentrated in the long run In industries where costs are minor the adjustment to shifts in demand will be relatively sm oother > the market price will be relatively less volatile chapter 6. conomic efficiency 2. conditions for economic efficiency Economically efficient = if no reallocation of resources can make one person better off without making another person worse off > persons may be human beings or businesses sufficient conditions Three sufficient conditions based on users’ benefits and supplier’s costs 1. All users achieve the same marginal benefit 2. All suppliers operate at the same marginal cost 3. Every user’s marginal benefit is equal to every supplier’s marginal cost Equal marginal benefit If not equal: * Provide more to user with higher marginal benefit * Take away from user with lower marginal benefit society as a whole would be better off Equal marginal cost If not equal: * Supplier with lower marginal cost should produce more * Supplier with higher marginal cost should produce less Marginal benefit equals marginal cost If not equal: * If MO > MC , produce more of the item * If MO < MC, produce less of the item philosophical basis Technical efficiency = providing an item at the minimum possible cost > does not imply that scarce resources are being well used The concept of economic efficiency extends beyond technical efficiency Economic efficiency assesses resource allocations in terms of each individual user’s evaluation of the benefit internal organization production will be efficient if all users achieve the same marginal benefit, all suppliers operate at the same marginal cost and every user’s marginal benefit balances every supplier’s marginal cost 3. adam smith’s invisible hand Invisible hand = market price guides buyers and sellers, acting independently and selfishly to channel scarce resources into economically efficient uses competitive market = satisfies all three requirements for economic efficiency market system = an economic system in which resources are allocated through the independent decisio ns of buyers and sellers, guided by freely moving prices Price performs two roles: * It communicates all the necessary information It provides a concrete incentive for each buyer to purchase the quantity that balances marginal benefit with the market price > it provides a concrete incentive for every seller to supply the quantity that balances marginal cost with the market price 4. decentralized management internal market Transfer price = price charged for the sale of an item within an organization > should set it equal to market price = by decentralizing the management is establishing an internal market that is integrated with the external market implementation Two general rules: * If there is a competitive market for the item, the transfer price should be set equal to the market price * Producing units should be allowed to sell the product outside buyers and consuming units should be allowed to buy the product from external sources Outsoarcing = purchase of services or supplies fr om external sourcesAny organization that used resources or products for which there are competitive markets can apply decentralization to achieve internal economic efficiency 5 incidence = both pricing methods have exactly the same impact on the manufacturer and customer freight inclusive pricing Cost and freight = a price that includes freight Ex-works pricing = does not include the freight cost > entire supply supply curve will shift down = with ex-works demand, the buyers will now have to pay the freight cost > price is lower = total price is equal if you increase the price with the freight cost Price and sales are the same whether the sellers do or do not include the freight cost in their prices incidence the change in the price for a buyer or seller resulting from a shift in demand or supply > whether manufacturers set prices that do or do not include the feight cost, the incidence is the same = the incidence does not depend on which side initially pays the freight cost > depen ds only on the price elasticities of demand and supply taxes = government depend on tax revenues to support public services such as national defense, †¦ > some are levied on consumers, others on businesses buyer’s vis-a-vis seller’s price Seller’s price = buyer’s price – tax Buyer’s price = price that buyers pay Seller’s price = price that sellers receive > p156 tax incidence buyer’s price will rise by less than the amount of the tax and the seller’s price will drop by less than the amount of the tax > tax is generally shared between buyers and sellers according to their relatively price elasticities * Less sensitive = will bear the relatively larger portion of the tax part II market power chapter 7. costs 2. economies of scale = analyze how costs depend on the scale or rate of production > decision on scale also depends on market demand and competition Fixed cost = cost of inputs that do not change with the product ion rate Variable cost = cost of inputs that change with the production rate marginal and average costsMarginal cost = rate of change of the variable cost > if average variable cost remains constant, then the marginal cost will be the same Economies of scale = increasing returns to scale = a business for which the average cost decreases with the scale of production > marginal cost will be lower than the average cost = since the marginal unit of production costs less than the average, any increase in production will reduce the average intuitive factors Two possible sources: * Substantial fixed inputs = at a larger scale, the cost of the fixed inputs will be spread over more units of production business with a strong element of composition, design or invention * If the average variable cost falls with the scale of production = whether the average variable cost increases or falls depends on the particular technology of the business diseconomies of scale = a business where the average c ost increases with the scale of production If: * Fixed cost is not substantial * And variable cost rises more than proportionately with the scale of production strategic implications If economies of scope: * Large scale * Market concentrated, few suppliers * Monopoly and oligopoly If diseconomies of scope * Small scale * Market fragmented * Perfect competition 3. economies of scope if the total cost of production is lower when two products are produced together than when they are produced separately Diseconomies of scope = if the total cost of production is higher when two products are produced together joint cost = cost of inputs that do not change with the scope of production strategic implications Example: telecommunication and broadcasting Produce/deliver multiple products * Product mix * Brand extension Core competence = a generalized expertise in the design, production and marketing of products based on common or closely related technologies = joint cost diseconomies of scope = if the total cost of production is higher when the two items are produced together than when they are produced separately arise where the joint costs are not significant and making one product increases the cost of making the other in the same facility 4. experience curve Accumulated experience = matters in industries characterized by relatively short production runs and a relatively substantial input of human resources As engineers and workers gain experience in production, they become more proficient individually and as a team > they devise new ways to reduce cost, including better tools and more cost-effective procedures Experience curve = shows how the unit cost of production falls with cumulative production over time > Distinguish from economies of scope within one production period Conditions: Relatively large human resources input per unit of production * Relatively small production runs 5. opportunity cost = it is necessary to look beyond the conventional accounting statem ents Relevance = key principle = managers should consider only relevant costs and ignore others alternative courses of action = to evaluate a business > conventional income statement does not present the revenues and costs of the alternative courses of action = costs are actually higher because of the opportunity cost opportunity cost defined Opportunity cost = net revenue from the best alternative course of action uncovering relevant costs Two ways to uncover relevant costs: Consider the alternative courses of action * Use the concept of opportunity cost = both approaches lead to the same business decision Alternative courses of action and opportunity cists change with the circumstances and hence are more difficult to measure and verify opportunity cost of capital A business that is partly financed by debs will appear to be less profitable than an otherwise identical business that is completely financed by equity > equity capital is not costless! = it has an opportunity cost Econom ic value added = net operation profit after tax subject to adjustments for accounting conventions less a charge for the cost of capital they are less likely to be biased in favor of capitalintensive activities A complete measure of business e performance should take account of the opportunity cost of equity capital 6. transfer pricing Transfer price = transfer price of an internally produced input should be set equal to its marginal cost perfectly competitive market Transfer price = market price full capacity = marginal cost of the input is not well defined > transfer price should be set equal to the opportunity cost of the input which is the marginal benefit that the input provides to the current user = compare marginal benefit across internal users 7. sunk costs a cost that has been committed and so cannot be avoided > not relevant to business decisions alternative courses of action Depend on: * Prior commitments * Planning horizon Continue | Cancel | Cont. margin | $280,000 | $0 | Advert agency | $50,000 | $50,000 | Magazine | $250,000 | $50,000 | Profit | ($20,000) | ($100,000) | Continue | Cont. margin | $280,000 | Advert agency | $0 | Magazine | $200,000 | Profit | $80,000 | = only avoidable costs strategic implications = managers should ignore sunk costs and consider only avoidable costs > sunk costs are not relevant for pricing, investment, or any other business decision Two ways of dealing with sunk costs: Explicitly consider the alternative courses of action * Remove all sunk costs from the income statement = both approaches lead to the same business decision > it is easier to consider the alternative courses of action explicitly when multiple alternatives commitments and the planning horizon To identify sunk costs consider: * Past commitments * Planning horizon The longer the planning horizon, the more time there will be for past commitments to unwind and hence the greater will be management’s freedom of action Short-run planning horizon = so me sunk costs Long-run horizon = no sunk cost Sunk vis-a-vis fixed costs Fixed cost two different senses: A cost that cannot be avoided once incurred * A cost of inputs that do not change with the production rate = two types of costs have very different implications for business decisions Not all sunk costs are fixed = cost op public service employees is sunk, once they secure tenure. However, government could have hired only temporary workers (no sunk costs) 8. statistical methods multipple regression = to investigate the extent of fixed costs and economies of scale forecasting = to forecast the dependent variable when the independent variables take different values Other applications Investigate the presence of joint costs across two products hapter 8. Monopoly 1. Introduction Monopoly = if there is only one seller in a market Monopsony = if there is only one buyer in a market 2. sources of market power = the barriers that deter or prevent entry by other competing sellers/buyers m onopoly Unique resource = access to unique physical, natural or human resources Intellectual property = property over inventions or expressions Patent = gives the owner an exclusive right to the invention for a specified period of time Copyright = establishes property in published expressions, including computer software and engineering drawings Economies of scale and scope Product differentiation differentiating itself from competitors > through product design, distribution, and advertising and promotion Regulation = government may decide to award an exclusive franchise to one provider > government hopes to avoid duplication and reduce the cost of the service monopsy = same factors as a monopoly Additional reason for presence = existence of a monopoly > a seller that has a monopoly over some good or service is also likely to have market power over the inputs into that item 3. Monopoly pricing Monopoly has to consider how its sales will affect the market price Given the market deman d curve a monopoly can Set the price and let the market determine how much it will buy * Decide how much to sell and let he market determine the price at which it is willing to buy that quantity Monopoly is choosing a combination of price and sales off the demand curve > a monopoly can set either the price or sales but not both revenue Inframarginal units = those other than the marginal unit Marginal revenue from selling an additional unit will be less than the price of that unit = marginal revenue is the price of the marginal unit minus the loss of revenue on the inframarginal units > difference between the price and the marginal revenue depends on the price elasticity * Demand elastic = seller need not reduce the price very much to increase sales > marginal revenue will be close to the price * Demand inelastic seller must reduce the price substantially to increase sales > marginal revenue will be much lower than price Marginal revenue can be negative = if the loss of revenue on th e inframarginal units exceeds the fain on the marginal unit Profit maximizing price Profit maximizing scale of operation = the scale at which the marginal revenue balances the marginal cost Contribution margin = total revenue less the variable cost > a seller maximizes profit by operating at a scale where the sale of an additional unit will result in no change to the contribution margin economic inefficiency Marginal benefit exceeds the marginal cost 4. demand and cost changes Change in demand: * New marginal revenue * Original marginal cost = new profit-maximizing sales and price arginal cost change = change in price is less than change in marginal cost When there is a change in either demand or cost, the extent to which a monopoly should adjust its price depends on the shapes of both it marginal revenue and marginal cost curves > it should adjust the price until its marginal revenue equals its marginal cost fixed cost change = profit-maximizing price and scale do not depend in any way on the fixed cost > changes in the fixed cost will not affect the marginal cost curve If the fixed cost is so large that the total cost exceeds total revenue, then the monopoly will prefer to shut down 5. advertising Promotion the set of marketing activities that a business undertakes to communicate with its customers and sell its products > advertising, sales promotion and public relations benefit of advertising Advertising can cause: * Shifting out the demand curve * Demand to be less elastic Benefit of advertising = change in the contribution margin Net benefit = the change in the contribution margin less the advertising expenditure > advertise up to the point that the increase in contribution margin from an additional dollar of advertising is exactly 1 $ = more appropriate to consider the effect of advertising on the contribution margin generated by the product dvertising-sales ratio Incremental margin = price less the marginal cost = increase in the contribution margin fro m selling an additional unit, holding the price constant Incremental marginal percentage = ratio of the price less the marginal cost to the price > measures the production of benefit by each dollar of advertising Advertising-sales ratio = incremental margin multiplied by the advertising elasticity of demand = says how much of the revenue should be invested in advertising 6. research and development = principles are the same as for advertising and promotion Benefit : * Shifting out the demand curve * Causing it to be less elasticNet benefit from R&D = change in the contribution margin less the R&D expenditure R&D-sales ratio = incremental margin percentage multiplied by the R&D elasticity of demand project evaluation = decisions on individual R&D projects should account for the timing of costs and benefits > p 212 7. Market structure effects of competition General points: * A monopoly restricts production below the competitive level and it can set a relatively higher price extracting larger profit * Profit of a monopoly exceeds what would be the combined profit of all the sellers if the same market were perfectly competitive potential competition Perfectly contestable a market in which sellers can entry and exit at no cost > monopoly cannot raise price substantially above its long-run average cost > depends on the extent of barriers to entry and exit lerner index = incremental margin percentage > can be used to compare the degree of monopoly power in markets with different prices > captures the impact of potential competition (P – MC) / P Perfectly competitive market = lerner index equals 0 Monopoly = bigger than 0 Problem = it will not detect the power that a monopoly does not exercise 8. monopsy = buyer with market power restricts purchases to depress the price Trades off: * Marginal expenditure * Marginal benefit Marginal expenditure = change in expenditure resulting from an increase in purchases by one unit maximizing net benefit a monopsy will maxim ize its net benefit by purchasing the quantity at which its marginal benefit equals its marginal expenditure A monopsony restricts purchases to get a lower price and increase its net benefit above the competitive level chapter 9. Pricing 2. uniform pricing = policies where the seller charges the same price for every unit of the product price elasticity = percentage by which the quantity demanded will change if the price of the item rises by 1% Demand inelastic > sales fall less than proportionately with the increase in price = total revenue will increase profit maximizing price Incremental margin percentage = – 1/price elasticity of demand demand and cost changesPricing rule shows how a seller should adjust its price when there are changes in the price elasticity of demand or marginal cost > a seller should not necessarily adjust the price by the same amount as a change in marginal cost common misconceptions * Contribution margin percentage = revenue less variable cost divide d by revenue > accounting systems often assume that costs are proportional = marginal cost is the same as the average variable cost = contribution margin percentage equals the incremental margin percentage * the belief that the profit maximizing price depends only on the elasticity = ignores costs * set the price by marking up average cost > problems: * in economies of scale, the average cost depends on the production scale > the need of an assumption about the scale sales and production scale depend on the price * it gives no guidance as to the appropriate mark-up on average cost Shortcomings: * leaves buyers with a lot of buyer’s surplus * does not sell to every potential buyer 3. complete price discrimination price discrimination = selling down the market demand curve = pricing policy under which a seller sets prices to earn different incremental margins on various units of the same or a similar product Complete price discrimination = a pricing policy where the seller pric es each unit at the buyer’s benefit and sells a quantity such that the marginal benefit equals the marginal cost > it charges every buyer the maximum that he or she is willing to pay for each unit comparison with uniform pricing resolves the two shortcomings of uniform pricing * no buyer’s surplus * economically efficient quantity information = to implement complete price discrimination, the seller must know each potential buyer’s individual demand curve > not enough to know the market demand curve or the price elasticity of the individual demand curves 4. direct segment discrimination Segment = significant cohesive group of buyers within a large market homogenous segments Direct segment discrimination = the policy of setting different incremental margins to each identifiable segment heterogeneous segments Not enough information: * apply uniform pricing within each segment prices are such that the incremental margin percentage for each segment equals the recipro cal of the absolute value of the segment’s price elasticity of demand * apply indirect segment discrimination within each segment implementation Conditions: * To implement direct segment discrimination, the seller must identify and be able to use some identifiable and fixed buyer characteristic that segments the market > otherwise buyer might switch segments * Seller must be able to prevent buyers from reselling the product among themselves = price discrimination is relatively more widespread in services than goods and is especially common in personal services Policy of direct segment discrimination prices should be set to derive a relatively lower incremental margin percentage from the segment with the more elastic demand and a relatively higher incremental margin percentage from the segment with the less elastic demand 5. location Seller can discriminate on the basis of the buyer’s location on two ways: * Free on board (FOB) = a common price to all buyers that does n ot include delivery > the differences among the prices at various locations are exactly the differences in the costs of delivery to those locations * Ignores the differences between the price elasticities of demand in the various markets * Cost including freight = delivered pricing = set prices that include delivery the difference in the prices between the two market will simply be the result of the different incremental margin percentage and the different marginal costs of supplying the two markets A lower margin does not necessarily mean a lower price because there is a transportation cost restricitng resale = if the difference between the prices of a product between two markets exceeds the transportation cost, consumers might buy the item in one market and ship it to the other > gray market = parallel importing 6. indirect segment discrimination = when seller may know that specific segments have different demand curves but cannot find a fixed characteristic with which to discrimi nate directly Indirect Segment discrimination policy of structuring a choice for buyers so as to earn different incremental margins from each segment > voorbeeld p 244-245 implementation Two conditions: * Seller must have control over some variable to which buyers in the various segments are differentially sensitive * Buyers must not be able to circumvent the discriminating variable = seller cannot prevent buyers from reselling the product 7. bundling = combination of two or more products into one package with a single price pure bundling = a pricing policy that offers only a bundle and does not allow the alternative of buying the individual products = more profitable than uniform pricing but less than direct segment discrimination mixed bundling offers buyers a structured choice between the budle and the individual products = form of indirect segment discrimination implementation Three conditions to be effective: * Where there is substantial disparity among the segments in their be nefits from the separate products * Where the benefits of the segments are negatively correlated in the sense that a product that is more beneficial to one segment provides relatively little benefit to another * Where the marginal cost of providing the product is low = when provision of the product involves a substantial marginal cost, a seller should consider mixed bundling 8. selecting the pricing policy Direct discrimination works through buyer attributesIndirect segment discrimination works through product attributes > products under indirect discrimination may provide less benefit than those with direct segmentation > indirect discrimination may involve relatively higher costs > indirect discrimination relies on the various segments voluntarily identifying themselves through the structured choice cannibalization = when the sales of one product reduce the demand for another product with a higher incremental margin > seller cannot discriminate directly and must rely on a structur ed choice of products to discriminate indirectly but discriminating variable does not perfectly separate the buyer segmentsWays to mitigate cannibalization: * Product design * By controlling availability chapter 10. strategic thinking 1. introduction Strategy = a plan for action in a situation where the parties actively consider the interactions with one another in making decisions Game theory = a set of ideas and principles to guide strategic thinking * Simultaneous actions = strategic form * Sequential actions = extensive form 2. nash equilibrium = a framework for strategic decisions that must be taken simultaneously A strategy is dominated = if it generates worse consequences than some other strategy regardless of the other parties’ choice Game in strategic form a tabular representation of a strategic situation, showing one party’s strategies along the rows, the other party’s strategies along the