Operant Conditioning Essay Example for Free

Operant Conditioning Essay The term operant conditioning is heard all over the psychology world. It is one of the first theories that one is introduced to during their psychology learning years. So, what exactly is this theory? While learning about operant conditioning we must pay attention to two necessities, positive and negative reinforcements. These two play a key role in operant conditioning and behaviors. But which reinforcement method works better? Positive or negative? There are a few aspects to look into when determining which method works the best. Once operant conditioning, positive reinforcement, and negative reinforcement are learned, then it becomes easy for an individual to take the information and shape a behavior. Along with shaping behaviors, the creation of a reinforcement schedule can also be applied to the selected behavior. The Theory of Operant Conditioning Operant Conditioning was created by behaviorist BF Skinner. Operant conditioning occurs through rewards and punishments for behaviors. This creates a link between a behavior and a consequence for that behavior. Skinner had believed that it was not really necessary to look at internal thoughts and motivation in order to explain behavior. Instead we should look only at the external observable causes of human behavior (Cherry, 2005). When we have actions that are followed by reinforcement, they will be strengthened and then more likely to occur again in the future. However, actions that result in punishments or non-desirable consequences will be the opposite. These actions will be weakened and less likely to occur again (Cherry, 2005). An example of operant conditioning would be a young child during potty training. The young boy would receive a cookie along with praise right after he goes potty in the toilet but receives nothing when he goes in his diaper. As a result of this, he learns to go in the toilet and  avoids going in the diaper. Positive and Negative Reinforcement Let us first begin with what a reinforcement is. A reinforcement is any event that strengthens or increases the behavior it follows (Cherry, 2005). Now, there are two types of reinforcements and they are negative reinforcement and positive reinforcement. With positive reinforcement, favorable events or outcomes are presented after the behavior. This is where the behavior is strengthened (Cherry, 2005). This occurs because there is the addition of something new such as praise or an instantaneous reward. An example of this would be little Johnny receiving a dollar right after he cleans his room. On the other hand, with negative reinforcement there is removal of an unfavorable event or outcome after the display of a behavior. This in turn will strengthen the response when something that is looked at as unpleasant is removed (Cherry, 2005). An example for this would be the professor offering to cancel the quiz for week two if everyone turns in their homework for week one. Now as one can see negative reinforcement is different from punishment because in the cases of punishment the behavior decreases. In either one of these cases the behavior of the individual increases. To look at both positive and negative reinforcement, can we decide which one is more favorable or which one will produce a better outcome? It seems as if that would depend on the individual themselves. Not everyone responds or reacts to stimuli in the same way. In an opinion, reaction can be based on personality. For example, a young child could consistently be given the option of money after cleaning their room on their own and still not do it because it is not favorable to them. However, the same child could jump for the opportunity of not having to attend church if all their homework is turned in the week prior. On an individual level, a household can contain one child that responds to positive reinforcement while the other responds to negative reinforcement. The Scenario and Schedule There are two reinforcement schedules, continuous and partial. Continuous reinforcement is reinforcing the behavior every single time it occurs (Cherry, 2005). With partial reinforcement, responses are only reinforced part of the time (Cherry, 2005). There are four schedules with partial  reinforcement, fixed ratio, fixed interval, variable ratio, and variable interval. Fixed ration is reinforcing a behavior after a specific number of responses have occurred. With fixed interval, a behavior is reinforced after a specific period of time has elapsed. Variable ratio involves reinforcing the behavior after an unpredictable number of responses and variable interval is reinforcing the behavior after the unpredictable period of time has elapsed. To better understand these schedules, it would be helpful to apply a selected behavior and first learn how operant conditioning can be applied. As a single parent of two daughters, ages 14 and 11, learning how to apply operant conditioning to shape their behavior, has been very helpful. It was set up for the children to bring home weekly progress reports after a few incidents of missing assignments. If the progress reports were positive with no missing assignments the children were praised on site and each given a dollar per class. If there were any missing assignments in any of their classes, then the children would not receive any money or praise. This is a positive reinforcement choice. The completion of assignments and grades from the children in school increased in order for them to receive a reward. Now, it is time to choose the reinforcement schedule for the scenario just talked about. It is understood that positive reinforcement was used by giving praise and a reward once the desired assignments and grades were met every week. This would be an example of a continuous reinforcement schedule. The desired behavior is reinforced every single time that it happens. With the scenario, every week that goes by with good grades and no missing assignments, the children are rewarded with praise and money. This creates a strong association between the behavior and the response (Cherry, 2005). Conclusion Operant conditioning relies on a fairly simple premise; actions that are followed by reinforcement will be strengthened and more likely to occur again in the future (Cherry, 2005). This can be good or bad behavior. Good behavior was reinforced with the above scenario. However, if you give into the child that kicks and screams every time he wants a candy bar in the store, you are strengthening that negative behavior. Learning occurs with positive and negative reinforcements being key parts to operant conditioning. Both of these help to increase or decrease the likelihood of  the desired behavior. Determining which reinforcement is better, depends on the individual at hand and what their personality will respond to better. With the above scenario the children responded better to positive reinforcement and with the reinforcement schedule, the likelihood that no missing assignments and good grades occur, increases. Operant conditioning is used every day and plays a vital role in the world. By learning about the fundamentals of operant conditioning, shaping behaviors can be easier than ever! Well, not really but hey, Rome was not built in a day. REFERENCE Cherry, K. A. (2005). Operant conditioning. Retrieved from http://psychology.about.com/od/behavioralpsychology/a/introopcond.htm Cherry, K. A. (2005). Schedules of reinforcement. Retrieved from http://psychology.about.com/od/behavioralpsychology/a/schedules.htm

Corporate Governance Impact On Capital Investment

Corporate Governance Impact On Capital Investment Introduction Overview Through various studies over the years, different scholars and financial analysts have been able to establish a relationship of cash flow on firms investment spending. It was significantly proven by (Modigliani Miller, 1958) that a firms financial status is irrelevant for real investment decisions in a world of perfect and complete capital markets, after controlling for the cost of capital. In case of managerial discretion, based on (Jensen, 1986) free cash flow theory, firms increase investment (including projects with negative present value) based on the availability of cash flows with incentive of increasing firms value beyond level of optimal investment. Moreover, an agency costs also appreciate the borrower net worth by charging a premium on the external financing. The discussion above explains that the firms investment decisions are dependent on the availability of internal funds, as cost advantage over external fund is evident. While choosing an appropriate capital structure, there are certain trade-offs which affects the decision. These trade-offs include tax advantage through acquiring debt against the bankruptcy cost which advocates the use of equity. Keeping this in view, various different models have been supported to explain this corporate capital structure behavior. Pecking Order Theory, initially mitigated by (Donaldson, 1961) describes the financing practice as prioritizing the means of financing, which is necessary for the management to counter against asymmetric information. Either they should generate the funds internally or acquire funds externally through debt rather than equity. Implications to the pecking order theory involves the positive impact of leveraging on the market price, which means, financing through debt sends a positive signal into the market about the firms future prospects. Furthermore, intermediaries also undermine the role of management as the financial intermediaries such as investment banks function as the insider to the firm. Consequently, keeping an eye on the firms operations and influencing the firms capital financing decision. However, Pecking order theory of (Myers, 1984) argues that the firms operating in imperfect or incomplete capital markets where the cost of external capital exceeds that of internal funds, the financial structure may be appropriate to the investment decisions of companies facing uncertain prospects. Gauging the level of corporate investment in any firm is based on the corporate governance; market position of a firms asset against its book value can be termed as Tobins q ratio. Identified by (Chung Pruitt, 1994), Tobins q as proportion of firms market value to replacement cost of its assets. Tobins q can be considered an effective tool for determining financial performance as the data can be collected readily from a balance sheet. When calculating Tobins q ratio, the replacement cost can be determined approximately by the book value of firms plant and equipment. Approximate q can be replaced with the actual Tobins q to make the calculations unproblematic and data can be readily available without any discrepancies. Problem Statement To study the impact of corporate governance on the capital investment decision through cash flow and Tobins q interaction in relation with Capital Investment HypothesEs H0: Firms cash flow having a significant impact on its capital investment will be linked with high Q values. (FCF Theory) HA: Firms being liquidity constrained due to least payout will have significant investment-cash flow sensitivity, and will be linked with high Q values in the market. (PO Theory) Outline of the study The report contains the contemplation of research data that will study the phenomenon of cash flows and investment discussed earlier in this paragraph. The study categorizes firms according to characteristics (such as dividend payout, size) which will help measure the level of constraints faced by firms. The study will help readers to understand the complexities of Pecking order theory and Free Cash Flows concept with regard to asymmetric information available and corporate governance which influences decision of the firms. To measure the effect that cash flow-financed (internally sourced) capital spending and Q has on firms investment, Ordinary Least Square Regression model will be used to estimate the function. To compute the influence on the Investment, instruments used are: (1) Cash Flow, (2) Approximate q, and (3) an interaction of both variables are created. Through studying the parameter estimates of interaction variable, positive influence on investment will support the Pecking Order hypothesis and negative influence will govern the Free Cash Flow hypothesis. The equation hypothesized in the next part is linear. Definitions Pecking Order Theory: (Myers, 1984): A firm is said to follow a pecking order if it prefers internal to external financing and debt to equity if external financing is used. Free Cash Flow Theory According to (Jensen, 1986), free cash flow theory, high cash flow and low debt create agency costs associated with conflicts between manager and share holder over the payout of this free cash, which is the cash left after the firm has invested in all available positive net present value projects. Capital Structure A careful and systematic analysis of how claims against a corporations assets can or should be determined, assessed, and accounted for. (Riahi-Belkaoui, 1999) Capital Investment Decision Capital Investment decisions are those decisions that involve current outlay in return for a stream of benefit in future years. (Drury, 2006) Tobins q Tobins q is a measure of investors expectations concerning a firms future profit potential. It is defined as the ratio of the market value of a firm to the replacement cost of its assets. (Strecker, 2009) Literature Review Vogt (Vogt, 1994) explained the capital spending behavior of companies with respect to change in dividend cash paid, cash flows, sales, and market value of assets. The regression equation models the variables to proportion of fixed assets, and distributes the firms data in segments of Dividend Payout Groups and Asset Groups. Primarily, Dividend Cash has a strong negative impact on capital spending; it explains that in order to finance additional fixed investment firm needs to sock cash by reducing their dividend. Cash flow, Sales, and Q Ratio having a positive coefficient demonstrates that with an increase in future cash flows, the firm will improve its capital spending. A relationship has been developed between the firms investment decision and the firms financial status by Cleary (Cleary, 1999), financial status has been studied with respect to the liquidity constraints. The data is classified into groups through a discriminant analysis on basis of dividend payout policy. Groups taken into study have made possible to identify firms which are more financially constrained more likely to be investment-cash flow sensitive, furthermore, availability of internal sources of funds have a greater impact on firms with high credit worthiness, and vice versa. It has been proposed that the various ownership structures make managerial decision based on the interaction between investment and the firms liquidity constraints. The study conducted by Dedoussis Papadaki (Dedoussis Papadaki, 2010) mentioned that the management can be held separate from its ownership, even on basis of the nationality of the company. On the other hand, it also explained that the relative shareholding of CEO and the controlling shareholders can also be the basis of separation. The sample used in the study was separated and grouped on basis of dividend payout, asset size of the firm, age of the firm, source of control, and kind of ownership. On the given sampling criterion; greater asset size firms, older firms, lower Q (high investment opportunity), and high dividend payout firms showed higher cash flow sensitivity towards investment. Findings support that the Low Q, small, and new firms under the generalized model are facing asymmetric information problems. Indeed these firms are expected a priori to face financing problems that affect the cost of their external financing. On the other hand, low Q, old and low dividend firms are more likely to face managerial discretion problems that result to over-investment. The impact of Tobins Q is mainly used to determine the investment opportunity of the firm. In this article, marginal Tobins Q has been taken to evaluate the firms investment and Research Development expenditures. The asymmetric information (AI) hypothesis proposed that firms provided with a profitable investment-project may be not able to source it through internal cash flows and for the reason that the cost of external funds is too high due to the capital markets ignorance of the firms investment opportunities. On the other hand, agency or managerial discretion (MD) hypothesis constructs the investment-cash flow relationship on the assumption that managers are well qualified in context with proficiency they obtain from managing a huge and fast paced firm and thus exceeding the wealth shareholders beyond their expectations. (Gugler, Mueller, Yurtoglu, 2004) Taking in viewpoint the impact of capital structure on the capital investment decision, firms investment demands is the more susceptible towards cost-of-capital or tax-based capital incentive. Whereas, capital structure seems irrelevant as against internal sources of funds can be effectively substituted with sources of funds generated externally. The size of the investment project can be a deterministic factor towards it. Fazzari, Hubbard, Peterson, Blinder, Poterba (Fazzari, Hubbard, Peterson, Blinder, Poterba, 1988) explicates that cash flow/investment relationship is more sensitive when taken in reference with firms dividend behavior. Comparison based on firms having more or less liquidity constraints can be further improved when compared on a division based on the scale of the firms, i.e. young or small firms versus large ones. This way the researchers can address the problem of firms lacking the asymmetric information. Under the impression where capital investments decisions mainly pertains to the capital structure or choosing the appropriate source of investment, Schaller (Schaller, 1993) conducted three different empirical tests to determine that information asymmetries have a huge influence on the firms investment behavior. Differences among the informational base of investors and creditors was also considered a capital market imperfection. Ownership status and age of the firms has an impact on the cost of equity financing, mature firms pay comparatively less price for it than young firms. Same aspect goes for the firms with concentrated with comparison to dispersed ownership. Borrowing is considered a more rational source for investment-projects. Pledgeable assets generate greater borrowing capacity, which afterwards makes firms invest more in pledgeable assets. As suggested by Almeida Campello (Almeida Campello, 2007), such a phenomenon can be termed as a credit multiplier. In case of financially constrained firms, a multiplier relates to the sensitivity of firms investment-cash flow relationship that is reflected as the increase in the tangible assets of the firm. Therefore, it is proposed that with fewer tangible assets firms are more likely to be financially constrained. The sensitivity of investment-cash flow relationship is evidently influenced by the tangibility of a firm, as latter discussed. Managers while making capital investment decision considers externally-sourced funds costlier, therefore, overconfident managers over assessing the profitability of an investment-project invests more when having abundant internal funds to utilize. However, deciding not to source externally in case where they are short of internal funds to generate. There has been an evidence of significant relationship between the managerial discretion and investment-cash flow sensitivity. Equity concentrated firms are more likely to be influenced by overconfident managers, unless compensation tools can be used to reduce the effects of managerial overconfidence. (Malmendier Tate, 2005) Goyal Yamada (Goyal Yamada, 2004) have explained the impact of asset pricing in the stock market against investment-cash flow sensitivity. Overvalued stock prices triggers an increased in investment spending and are cut back when stock are being undervalued, consequently, inflated prices collateral assets attract higher level of external financing. Inflationary pressures primarily determined by the economic monetary policy impacts on the variation of cost on external financing, though it reflects highly on cost of external financing, marginally impacts less on the investment-cash flow sensitivity. It has been observable that less financially constrained firms have significantly higher investment-cash flow sensitivity. Characterizations of firms based on financial constraint can sometimes create confusion. Firms having unusually high cash holdings can either be characterized as unconstrained based on the opportunities it has to invest or constrained based on the assumption that it needs to have a precautionary savings to invest in future investment projects. Therefore, financial constraints cannot be used as an influential determinant for investment-cash flow sensitivity. (Kaplan Zingales, 1997) Hu Schiantrlli (Hu Schiantarelli, 1998) put into picture the effect of general economic factors and various firms characteristics on the value of the firms net worth. Mainly financial status is the most important determinant for the level of asymmetric information problem that managers face. A strong balance sheet position can reflect good sign of firms performance which enhances the market value of the firms asset to its stake holders, mainly investors and creditors. Q models assumption also assists in determining the sensitivity of the investment-cash flow relationship, where the indicators determine the investment opportunity and the sources of funds to choose from. Understanding the market influence in proxy of q can also give a clear picture to the movements in the firms investment over a period. Net worth of firms helps manager determine if the sourcing of funds externally is a viable option in contrast to the investment opportunity which underlies. (Hubbard, 1998) Research conducted on the investment-cash flow sensitivity addresses many aspects of the firms financial strength. Further study by Calomiris Hubbard (Calomiris Hubbard, 1995) shows that when firms tax taken under investigation also reflected a significant influence on the volume of spending on investment-projects. They explored the impact of surtax margin, as a tax experiment, on the cost of internal and external funds. Surtax when levied on undistributed profits, obligate the firms to incur certain cost on the internal funds. This effects the managers decision to invest and is also reflected on the investment-cash flow sensitivity against the surtax margin. As a result to evade burden of higher cost on internal funds, firms with high surtax-margin exhibits elevated sensitivity in investment-cash flow relationship. Quan (Quan, 2002) discusses the Pecking Order theory with reference to the Modigliana-Miller proposition that works under the assumption of perfect market. Here it is stated that value of the firm is irrelevant and based on a few limitations the choice of financing can be determined via gauging the strength of the firm. These factors pertain to the imperfect market and influence the managers to make their capital investment decision. Once the assumptions are released the financing structure shows a clear picture. The association between Free Cash Flow theory and Agency theory has always been under the limelight when there is a question of retaining the undistributed profits. FCF Theory taken under consideration gives out an option to the management to hold on to excess cash sacrificing the shareholders opportunity cost. These excess funds can be generated to better internal operational efficiency or at managers discrepancy to source its investment-projects. (Wang, 2010) Research Methods The chapter explains the model used in the given research study. The study focuses on analyzing the influence of Cash Flows and Tobins q on Corporate Investment. The equation represented by a dependent variable as a ratio of capital spending to the beginning net fixed asset (I/K) predicted by independent variables: (1) ratio of cash flow to the beginning gross fixed asset (CF/K), and (2) beginning Tobins q (Q). Method of Data Collection Main source of collecting the required data is from secondary sources. It includes the Balance Sheet Analysis of Joint Stock Company listed in Karachi Stock Exchange provided by State Bank of Pakistan consisting of data of our relevant variables. The data was taken in annual terms to conduct this research. Sampling Technique The Convenience sampling or grab or opportunity sampling would be use in this research. Sample population selected because it is readily available and convenient. Sample Size The sample period taken under study covers 8-years period beginning at the start of 2000 and ending at the close of 2008. The data was taken from a sample of 70 (non-banking and non-financial) companies which are listed on Karachi Stock Exchange and included in KSE-100 index. Research Model Statistical technique Ordinary Least Square Regression technique is used to study the impact of variables included in the study. It helps studies the relationship between a dependent variable and several independent variable. It also assumes the relationship to be linear or straight line, where the values of predictors lies directly proportional to Criterion variable. SPSS Software is used to develop the regression model and evaluate the influence of predictors on dependent variable. Results Findings and interpretation of results Aggregate Sample: Table : Represents the model summary of regression estimates for the full sample of 69 firms The predictors, i.e. main effects of Cash Flow and Tobins q and an interaction variable of both combined, included in the model explains 78.5% of Investment (Table 1) shown mentioned as R Square. Least variation in Adjusted R Square suggests that the variable to observation ratio in the given model is sufficient. Casewise diagnostic was also conducted to eliminate the outliers in the data to improve the results. Table : Studies the F-statistics to test whether the model predicts the dependent variable significantly The F-statistics (Table 2) is significant and it determines the regression model with the given predictors can significantly predict the outcomes at a 0.05 significance level. Table : The parameter estimation for full sample of 69 firms with respect to dependent variable, t-statistics is used to test the null hypothesis ÃŽÂ ²1 = ÃŽÂ ²2 = ÃŽÂ ²3 = 0 The coefficient values of all predators included in the test are significant at a 0.05 significant level (Table 3), which shows that they have a strong influence on the investment of the firm. The standard coefficient shows that Cash Flows have a much greater impact on Investment than market value on the firm, which is exemplified through Tobins q. Dividend Payout groups: Table : Presents the sample statistics for 69 KSE listed (non-banking and non-financial) companies which are included in the KSE-100 index. The three rows distribute the statistics into High, Medium, and Low payout policies. Average dividend-to-income ratios of greater than 0.35, between 0.35 and 0.10, and less than 0.10 define High, Low, and Medium dividend-payout firms, respectively. While studying the dividend-payout groups (Table 4), the descriptive helps to identify characteristics to confirm whether the data being studied has the authenticity and the behavior pattern which commonly related to the groups assigned. The values of Investment, Cash Flow, and Tobins q associated with the groups are in complete correspondence with the hypothetical occurrence. Firms having a higher (lower) dividend payout have greater (lower) market value, and lower(higher) level of cash flows and investments. Table : Represents the model summary of regression estimates of 69 firms split by High, Medium, and Low dividend-payout policies. The model helps explains 81.9%, 66.7%, and 80% data in High, Medium, and Low dividend-payout firms (Table 5), shown in R Square. Least variation in Adjusted R Square suggests that the number of observations is sufficient with respect to variables in each group separately. Table : Studies the F-statistics to test the null hypothesis of ÃŽÂ ²1, H = ÃŽÂ ²1, M = ÃŽÂ ²1, L The F-statistics (Table 6) in each dividend payout group is significant and it determines that each regression model with the given predictors can significantly predict the outcomes at a 0.05 significance level. Table : Shows the parameter estimation for each payout groups with respect to dependent variable, t-statistics is used to test the null hypothesis ÃŽÂ ²1 = ÃŽÂ ²2 = ÃŽÂ ²3 = 0 The coefficient values of predators in High and Low dividend payout groups are all significant at a 0.05 significant level (Table 7), which shows that they have a strong influence on the investment of the firm. Except for Medium dividend payout group, which has insignificant coefficient values of Tobins q, showing no impact on the investment. The standard coefficient shows that Cash Flows have a much greater impact on Investment than market value on the firm, which is exemplified through Tobins q. Hypothesis Assessment Summary Hypothesis Independent Variables B t Sig. Comments Firms cash flow having a significant impact on its capital investment will be linked with high Q values. (FCF Theory) Cash Flow ÃÆ'— Q H0: ÃŽÂ ²3 ÃŽÂ ²3,H = .135 5.295 .000 Rejected ÃŽÂ ² 3,M = .072 .991 .324 ÃŽÂ ² 3,L = .140 5.482 .000 Firms being liquidity constrained due to least payout will have significant investment-cash flow sensitivity, and will be linked with high Q values in the market. (PO Theory) Cash Flow ÃÆ'— Q HA: ÃŽÂ ²3 >0 ÃŽÂ ² 3,H = .135 5.295 .000 Accepted ÃŽÂ ² 3,M = .072 .991 .324 ÃŽÂ ² 3,L = .140 5.482 .000 Dependent Variable: Investment (I/K) Table : Summarizes the results and explains that the hypothesis accepted is directly in correspondence with the aggregate hypothesis. As illustrated (Table 8) capital spending of low payout firms is positively and strongly influenced by the interaction term, consistent with the PO hypothesis, the parameter estimate for the high payout firms are also positive but marginally significant. Conclusion, Discussions, Implications And Future Research Conclusion The results illustrated above demonstrates that the positive relationship between the degree of the Investment-Cash flow relationship and Q represented latter in the aggregate data (Table 3) is concentrated in low or no dividend paying firms. This finding is in further support with the PO hypothesis. Discussions The objective was to study and test the causes of universal relationship between Cash Flow and Investment Spending. Hence, two hypotheses were included in the research to study the source of this relationship: the free cash flow hypothesis (FCF) hypothesis, which works on the assumption that managers prefer investing its free cash flow excessively into investment projects that are not profitable, and the pecking order hypothesis (PO) purports that managers are prone to investment comparatively less than the opportunity provided due asymmetric information-induced liquidity constraint. As advocated in favor of Pecking Order Theory by (Fazzari, Hubbard, Peterson, Blinder, Poterba, 1988) and many others, for groups which consists of small firms with low-dividend payout to fund capital spending, exhibits heavy reliance on cash flow and cash changes. The relationship can be more significantly studied when the impact of larger q value is associated with this group. Evaluating the impact of corporate governance on investment-cash flow relation requires a critical judgment as to how do the firms cash flow and the existing market value influence the investment decision. Financially constraint firms may have a larger impact on liquidity associated matters and managers might take discretion in choosing the right sources to tap. Agency cost may be involved in making such a decision where managers may consider paying dividend as a higher opportunity cost as it reduces the firms free cash flow to exploit new profitable investment projects. Implications and Recommendations In the current market situation where external pressures existing can also be taken into proxy. When managers making a capital investment decision they need to take in view other non-financial aspects that also influences the decisions to a certain extent. Furthermore, financial intermediaries having a certain level of involvement and sharing information sensitive to the market can also be a major factor that might be giving a varying result against Investment. Investing in profitable-investment projects can bring in greater resources to the firm in future and it entails a huge decision burden upon the shoulders of the managers. Shareholders expecting to earn a greater return through investing in them can also be undermined when manager decided to have a low payout policy. Funds generated internally is a possibility where there is a healthy cash flow, but it is also preferable if this free cash is invested into marketable security for allocating the resources into a profitable venture for a time being to make it a positive impression. Future Research In future studies there may be more aspects of cash flow-investment relationship which can be studied for assessing the degree impact it has on this relationship, i.e. sales, debt performance, capital structure, firm size, etc. The research study may also be improved if the observation of firms are increased that will in turn reflect a more clear picture about the relationship in the current scenario. References Almeida, H., Campello, M. (2007). Financial Constraints, Asset Tangibility, and Corporate Investment. The Review of Financial Studies , 20 (5), 1429-1460. Calomiris, C. W., Hubbard, R. G. (1995). Internal Finance and Investment: Evidence from the Undistributed Profits Tax of 1936-37. The Journal of Business , 68 (4), 443-482. Chung, K. H., Pruitt, S. W. (1994). A Simple Approximation of Tobins Q. Financial Management , 23 (3). Cleary, S. (1999). The Relationship between Firm Investment and Financial Status. The Journal of Finance , 54 (2), 673-692. Dedoussis, E., Papadaki, A. (2010). Investment spending and corporate governanc: Evidance from the ASE listed firms. Managerial Finance , 36 (3), 201-224. Donaldson, G. (1961). Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity. Division of Research, Graduate School of Business Administration, Harvard University . Drury, C. (2006). Cost and management accounting: an introduction (6 ed.). Cengage Learning EMEA. Fazzari, S. M., Hubbard, R. G., Peterson, B. C., Blinder, A. S., Poterba, J. M. (1988). Financing Constraints and Corporate Investment. Brookings Papers on Economic Activity , 1988 (1), 141-206. Goyal, V. K., Yamada, T. (2004). Asset Price Shocks, Financial Constraints, and Investment: Evidence from Japan. The Journal of Business , 77 (1), 175-199. Gugler, K., Mueller, D. C., Yurtoglu, B. B. (2004). Marginal q, Tobins q, Cash Flow, and Investment. Southern Economic Journal , 70 (3), 512-531. Hu, X., Schiantarelli, F. (1998). Investment and Capital Market Imperfections: A Switching Regression Approach Using U.S. Firm Panel Data. The Review of Economics and Statistics , 80 (3), 466-479. Hubbard, R. G. (1998). Capital-Market Imperfections and Investment. Journal of Economic Literature , 36 (1), 193-225. Jensen, M. C. (1986). Agency costs of free cash flow, corporate finance, and takeovers. American Economic Review , 76, 323-9. Kaplan, S. N., Zingales, L. (1997). Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints? The Quarterly Journal of Economics , 112 (1), 169-215. Malmendier, U., Tate, G. (2005). CEO Overconfidence and Corporate Investment. The Journal of Finance , 60 (6), 2661-2700. Modigliani, F., Miller, M. H. (1958). The cost of capital, corporation finance, and the theory of investment. American Economic Review , 48 (3), 261-97. Myers, S. C. (1984). The capital structure puzzle. The Journal of Finance . Quan, V. D. (2002). A rational justification of the pecking order hypothesis to the choice of sources of financing. Management Research News , 25 (12), 74-90. Riahi-Belkaoui, A. (1999). Capital structure: determination, evaluation, and accounting. Quorum. Schaller, H. (1993). Asymmetric Information, Liquidity Constraints, and Canadian Investment. The Canadian Journal of Economics , 26 (3), 552-574. Strecker, N. (2009). Innovation Strategy and Firm Performance: An Empirical Study of Publicly Listed Firms. Gabler Verlag. Vogt, S. C. (1994). The Cash Flow/Investment Relationship: Evidence from U.S. Manufacturing Firms. Financial Management , 23 (2), 3-20. Wang, G. Y. (2010). The Impacts of Free Cash Flows and Agency Costs on Firm Performance. Journal of Service Science and Management , 3 (4), 408-418.

How You Are Using Reflective Practice Nursing Essay

How You Are Using Reflective Practice Nursing Essay The aim of this assignment is to discuss how I am using reflective practice and codes of conduct in my journey to becoming a health professional. Through this discussion, the relationship between reflection, codes of conduct, and professional development will be demonstrated. For the purposes of this assignment, references to a reflection on an aspect of my clinical practice; namely maintaining patient confidentiality, will be made (see appendix). This reflection is guided by Gibbs Reflective Cycle (1988) (cited in Jasper, 2003, p. 77). I selected this framework as it allows one to reflect in a systematic manner on positive aspects of the experience as well as areas for improvement. Indeed, this aspect of my clinical practice will form the context of this assignment, as well as other relevant standards of conduct (Nursing Midwifery Council (NMC), 2008). The following paragraphs will discuss codes of conduct and the process of reflection with reference to my professional development. Nursing practice is underpinned by clear regulatory principles (the NMC code of conduct, 2008). The code provides standards of conduct, performance and ethics for nurses and midwives and is a tool in safeguarding the wellbeing of the public. As Goldsmith (2011, p. 12) states, the code should be used to guide daily practice. However, Sutcliffe (2011) argues that the code can be difficult to implement in practice. Sutcliffes argument is supported by first-hand experience during my placement. The following excerpt summarises the experience on which I reflected: During visiting hours on the ward a gentleman approached me to ask for the whereabouts of a patient (this patient had recently gone to theatre). In a helpful manner, I proceeded to inform the gentleman of the patients location. However, the conversation was interrupted by a member of staff who correctly established the identity of the visitor. In these circumstances, I did not uphold a key principle of the code: to respect peoples right to confidentiality (NMC, 2008, p.3); in spite of the fact that I had learnt about this principle prior to going on placement. This key standard of conduct is reiterated in the guidance published by the Department of Health (DH, 2003) and by the Caldicott report (1997) (cited in Crook, 2003). Whilst reflecting-on-action following this experience, the code offered a benchmark against which I evaluated my professional conduct. As a developing health professional I learnt that I must respect a persons right to confidentiality and I must act as an advocate for those who I am helping to care for. My reflective process highlighted the importance of regularly referring to the code and other supporting guidance so as to develop my professional practice in this area. In my reflection, I propose an action plan for managing subsequent situations. This action plan applies other pertinent aspects of the code, for example, to work effectively as part of a team, to share information with your colleagues (NMC, 2008, p.5) and to keep clear and accurate records (NMC, 2008, p. 6). With reference to applying these principles to my practice hereafter, I would consult the patients notes to confirm next of kin and patients location (i.e. theatre) and effectively communicate with colleagues about this situation. Furthermore, confidentiality is underpinned by trust (Pattison Wainwright, 2010). Gibbs action plan (1988) functioned as an aid to my learning and development. Throughout my career I plan to consider and reflect on the fundamentals of the code whenever I am thinking of my learning obje ctives and professional development (Goldsmith, 2011). Johns (2004, p. 1) proposes that the reflective process is a way of being within everyday practice. To illustrate this further, the technique allows the practitioner to become mindful of self within the context of a particular experience. The intention is to resolve incongruity between a practitioners own vision and actual experience (Johns, 2004). Schà ¶n (1987) (cited in Johns, 2004, p.1) distinguishes between reflection-on-action (as shown by my reflection) and reflection-in-action. For example, reflection-in-action refers to occasions when a practitioner takes a momentary pause during a particular experience in order to make sense of it and to consider how best to proceed. Consequently, as we become accustomed to thoughtfully analysing our practice following an event (on-action), the ability to reflect-in-action becomes a part of everyday practice (Johns, 2004). Mention should be made here of an absence of conventional research to support this argument; although anecdotal eviden ce has been found (Johns, 2004). These two layers of reflection; namely in-action and on-action, are the cornerstone of professional development. For me, reflection as a learning process will facilitate the move from a novice learner to an intuitive expert, by means of developing implicit knowledge accumulated from past experiences (ORegan Fawcett, 2006). As I reflect on subsequent experiences in the remit of patient confidentiality, I will develop practical and professional knowledge. The benefits of using reflective practice have been well documented. ORegan Fawcett (2006) explains that the process reduces the gap between theoretical knowledge and nursing practice and fosters the development wisdom and implicit knowledge. Fawcetts argument has been illustrated by my reflective process. It is important to discuss what it means to be a professional nurse in order to evaluate its significance to the reflective process and codes of conduct. A registered nurse acquires a body of specialist knowledge from the educational and practical setting. However, the idea of holding a body of knowledge is arguably less important than the ability to draw on intuitive knowledge, tuned through previous practical experimentation and reflection (Schà ¶n, 1987 Stevenson, 1990). My personal experience of the reflective process is that it facilitates the move from reflection-on-action to reflection-in-action. Similarly, this sophisticated skill reduces the perceived theory-practice gap. ( To summarise this discussion, I have used Gibbs reflective cycle to reflect on an aspect of my clinical practice; namely patient confidentiality. The code (NMC, 2008) has functioned as a benchmark against which I have evaluated my professional knowledge and behaviour. Indeed, the NMC advocates the use of reflective practice for professional growth. I can conclude that an improved skill in reflective thinking will drive my professional growth. Similarly, the values highlighted by the code are equally essential for the development of my professional accountability. It is important to note that the mutual function of reflective practice, codes of conduct and professional development is to ultimately deliver excellent nursing care to our patients. References Crook, M. A. (2003) The Caldicott report and patient confidentiality. Journal of Clinical Pathology, 56 (6): 426-428. Department of Health (DH). (2003) Confidentiality: NHS code of practice. Leeds: DH. Gibbs, G. (1988) Learning by doing: a guide to teaching and learning methods. Oxford: Further Education Unit, Oxford Brookes University. Goldsmith, J. (2011) The NMC code: conduct, performance and ethics. Nursing Times, 107 (37): 12-14. Institute of Health Records and Information Management. (1997) The Caldicott Report. London: IHRIM. Jasper, M. (eds.) (2003) Beginning reflective practice. Cheltenham: Nelson Thornes. Johns, C. (2004) Becoming a reflective practitioner. 2nd ed. Oxford: Blackwell Publishing. Nursing Midwifery Council (NMC). (2008) The code: standards of conduct, performance and ethics for nurses and midwives [online]. Available from: http://www.nmc-uk.org/Documents/Standards/The-code-A4-20100406.pdf [Accessed 25 February 2013]. ORegan, H. Fawcett, T. (2006) Learning to nurse: reflections on bathing a patient. Nursing Standard, 20 (46): 60-64. Pattison, S. Wainwright, P. (2010) Is the 2008 NMC code ethical? Nursing Ethics, 17 (1): 9-18. Schà ¶n, D. (1987) Educating the Reflective Practitioner. San Francisco: Jossey-Bass. Stevenson, J. S. (1990) The development of nursing knowledge: accelerating the pace. In Chaska, N. I. (ed.) The nursing profession: turning points. St Louis: The C.V. Mosby Company. pp. 597-607. Sutcliffe, H. (2011) Understanding the NMC code of conduct: a student perspective. Nursing Standard, 25 (52): 35-39.

Dr. Noddings Philosophy of Education Essay -- Education Teaching Nodd

Dr. Noddings' Philosophy of Education Nel Noddings is a name unfamiliar to most people outside the educational community; but within it, even at 78, she remains one of the most influential voices. Her central passion which has carried her through 23 years of public school teaching, 10 children, a masters and Ph. D. degree, and over 20 years as a member of the faculty at Stanford can be summed up in one word: care. She writes of it, speaks about it, and practices it. What does Noddings mean when she writes of guiding teachers, â€Å"toward greater sensitivity and competence across all the domains of care.† Does it have a practical methodology behind it? Is it an appeal to pathos? It is difficult to thoroughly unpack all the Noddings has said about caring, but we can initiate our exploration of her concept by reading Maxine Greene's summary of the idea: â€Å"...the caring teacher tries to look through students' eyes, to struggle with them as subjects in search of their own projects, their own ways of making sense of the world.† (129, Philosophical Documents†¦) The idea appears exciting and innovative at first glance, but upon further analysis (as well as comparison with competing educational philosophies) we see that it is a modern form of one of two predominant, competing paradigms within Western tradition. The first paradigm tells us that a welleducated person is, as Locke puts it, â€Å"produced† (55) by the educator. The second paradigm is apparent in Reed and Johnson's summary of Aristotle, â€Å"...to assist human beings in developing their unique capacity to contemplate the world and their role in it.† (18) Noddings compels her reader to the furthest corners of the â€Å"assist† paradigm. For a teacher to â€Å"care† as Noddings prescrib... ...ed about just as much as theirs. Bibliography Noddings, Nel. â€Å"Renewing Democracy in Schools.† Phi Delta Kappan. Bloomington: April 1999. Vol. 80, Iss. 8; pg. 579, 5 pgs. Noddings, Nel. â€Å"Educating Whole People: A Response to Jonathan Cohen.† Harvard Educational Review: Summer 1999. Vol. 76, Iss. 2; pg. 338. Noddings, Nel. â€Å"Teaching Themes of Care.† Phi Delta Kappan. Bloomington: May 1995. Vol. 76, Iss. 9; pg. 675, 5pgs. Noddings, Nel. â€Å"Thinking About Standards.† Phi Delta Kappan. Bloomington: Nov 1997. Vol. 79, Iss. 3; pg. 184, 6 pgs. Noddings, Nel. " Two Concepts of Caring." Philosophy of Education Yearbook. May 29, 2007 http://www.ed.uiuc.edu/eps/PES-Yearbook/1999/noddings.asp>. Reed, Ronald; Johnson, Tony W., ed. "Aristotle,† and â€Å"Maxine Greene." Philosophical Documents in Education. 2nd ed. Vol. 77. Addison-Wesley Longman, Inc., 2000.

Krispy Kreme Doughnuts :: essays research papers

Krispy Kreme Donuts, Inc. Since Krispy Kreme was founded in 1937, it has grown into a leading branded specialty retailer, producing more than 5 million doughnuts a day and over 1.8 billion a year. In addition to Krispy Kreme stores, their premium quality doughnuts are sold in supermarkets, convenience stores and other retail outlets throughout the country. Best known for their fresh, glazed, yeast-raised doughnuts, known as "Hot Original Glazed†, Krispy Kreme also make more than a dozen other varieties of yeast-raised and cake doughnuts. But the company is currently going through financial turmoil along with possible earnings management. Krispy Kreme Doughnuts recently announced that they are slashing 125-130 jobs, the vast majority in Winston-Salem. The company is eliminating one-fourth of their staff in order to cut costs. Also, they recently sold their corporate jet to a Wilmington company for $30.5 million. It is evident that the donut empire is suffering from liquidity and cash flow problems. Some investor argue that they didn’t see this coming because the once highly profitable, ever expanding company, seemed incapable of fiscal failure. The layoff shows that they have experienced a major downturn in the past year. Less than two years ago, Krispy Kreme’s shares sold for $50 and are currently selling for $7.21. The bottom line is that Krispy Kreme must revamp sales in order to increase cash flow or they will not make it. Their board of directors said that the downsizing would create an annual pretax savings of about $7.4 million; they will take a restructuring charge in their fiscal first quarter to pay for the work force reduction. The company also stated that selling the jet will result in annual pretax savings of $3 million; but it will have to take a $300,000 charge in its current fiscal first quarter because of the deal. Also in January, Krispy Kreme's long-term debt lenders contracted to extend for two months to March 25, 2005, the date on which the company would be in default on its $150 million credit agreement. This agreement restricts the company from borrowing any money until repaid. Kripsy Kreme is witnessing the results of a low-carbohydrate phase combined with expanding too fast; plunging profit, crumbling stock price, its accounting is under investigation by the Securities and Exchange Commission (because they have yet to file quarterly reports that were due February 1,2 005), and it is the subject of various

Affirmative Action Cannot Erase Years of Oppression :: Argumentative Persuasive Argument Essays

Affirmative Action Cannot Erase Years of Oppression For forty years the issue of affirmative action has been subject to a tremendous amount of debate and controversy. When President Kennedy proposed the idea of preferential treatment in 1961, the nation was in the midst of radical changes regarding civil liberties. It was a time when the injustices imposed upon minorities were beginning to be recongnized, and people wanted to make up for the years of oppression that served as a barrier for the advancement of minorities in America. At the time, the idea was morally justified and socially appropriate. While it is still a morally commendable effort today, the system has become an attempt to atone for the sins of our country's past, and a double standard that threatens every citizen's liberties. The first problem with affirmative action is the obvious fact that it is an attempt to end discrimination with discrimination. When a company or university discriminates against a white male for the sake of bettering the outcome of another racial group, an injustice occurs. Affirmative action is the governmental legislation of the active discrimination of one person over another—an unacceptable and dangerous double standard. Secondly, affirmative action seeks to reconcile the injustices of the past. The horrible atrocities of the past, including slavery and the refusal to grant women and minorities the right to vote, cast an ugly shadow on the history of our nation. But affirmative action cannot erase what our ancestors did years ago. Instead of trying to reconcile the oppression of the past, we should try to lend a hand to young minorities that want to learn and be successful, but lack the resources they need to accomplish their goals. Another issue concerning affirmative action is the stigma attached to the minorities themselves. Minorities are capable of getting the best jobs, obtaining admittance to the most prestigious schools, and being as successful as any white male has ever been. The problem occurs when people view them as inferior because of affirmative action--the attitude of "You couldn't do it on your own." These implications have a lasting, damaging effect on the mental well-being of minority students. How can anybody feel truly accomplished when a lingering doubt about the legitimacy of his achievements exists? Our society must learn to embrace diversity. People from a variety of different cultures and racial backgrounds have a lot to teach one another. The only way for this to happen is to maximize diversity on

Bluesky Shopping Mall

Analytical Report on Blue Sky Shopping Mall Executive Summary Blue Sky Shopping Mall is a large shopping mall in a thriving business center in Myaynigone. However, it is in a bad shape and its growth is declining. Several factors, such as the lack of vision and mission and long-term plan, unsuitable organizational structure, lack of target market and market strategies and the high turnover rate affect the growth of the Shopping Mall. This report sets out a plan and recommendations to reinvent a new invigorating image of the Shopping Mall. Based on a situational analysis, it draws up an organizational structure best suited for the Mall.The organization structure explains the type of management needed, the importance of strong and visionary leadership, some marketing strategies and marketing mixes. Moreover, this report gives recommendation for some aspects of human resource management. It seeks to revitalize the Shopping Mall and make it a profitable business, serving the needs of the customers best. Introduction In the beginning of the year 2013, our Chairman Dr. Patrick Hong made an acquisition of Blue Sky Shopping Mall. The Shopping mall is located in No. 7, Bargaya Road, Myaynigone, Sanchaung, Yangon.The location of the Shopping Mall is very strategic in many aspects. The area has a thriving business environment with Dagon Center I and II, Gamonepwint, City Mart, and some other fashion shops, restaurants, Car Accessories Shop and Car Show Room. The Shopping Mall is a nine-storey building with a car park next to it. The Shopping Mall has eight sectors, starting with store-room at the basement, Food Court, Department Store, Clothing, Sports, Cosmetics, Appliances, Housing Accessories, and Recreation (play stations, playground for children and cinemas) on the ninth floor. I. Business Administration 1. 1.Long-term Business Plan Situational Analysis Blue Sky Shopping Mall was established in January 2010. The newly founded Shopping Mall initially enjoyed considera ble reputation and generated much profit. However, now it is not doing very well. The situational analysis below looks into some positive facts as well as some of the main causes of decline. A. Internal Factors: Strength and Weakness a. Strengths i. There are some experienced and skilled employees with potentials for becoming leaders. ii. The majorities of employees are young, hardworking and eager to learn to become more competent in their jobs. ii. As each sector (e. g food/clothing) occupies a floor, the interior organization of the Shopping Mall is simple and easy for shoppers to search for items they need and easy to manage. iv. The quality of the retailed products is as good as those from Dagon Center I and II and Gamonepwint. b. Weakness Organizational structure i. The organizational structure takes a centralization approach with all the decisions made by CEO. This has a heavy negative impact on the whole operation of the Mall. With too many matters at the hand of the CEO alo ne and decisions could not be made in time and problems pile up. i. There is no delegation of power given to supervisors of each sector. They have to wait for the decisions of CEO. The problems in each department became graver and solutions and directions became long overdue. This greatly hampers the efficient running of the Shopping Mall. iii. Having too many matters in hand, the CEO could not establish good relationship with the staff. He could only inspect each sector in rare occasions. Some employees take advantage of his absence and shun their responsibilities. This causes much quarrelling among staff.And as the number of problems increase the CEO becomes stressful and authoritative and could not trust his subordinates. iv. The few numbers of security personnel at the entrance of the Mall cannot cope with the long line of people pouring into the Mall. As a result, people become frustrated with queuing up and gradually turn away from the Mall. v. There is no clear job descriptio n given to supervisors, the staff in each department become confused. The direct effect of this disorientation is apparent in maintenance such as cleaning, replacing expired products, mistaken price label and shortage of stocks. vi. The cashiers are not well-trained.They take a long time to serve the customers. This causes unnecessary long queue at the payment counter making the customers feel stressed and sometimes quarrel among themselves. vii. The lack of clear break time schedule among the cashiers adds another problem to the long queue at the payment counter. viii. The staffs at the customer information are not well trained. The consequence is they cannot give necessary and satisfactory answers or directions effectively to the customers. Their discourteous manner causes great unease and unpleasantness to the customers. ix. The staffing of â€Å"general inspectors† is absent.These are people who go around to make sure that everything in a sector is running well. When ther e is a need in a sector there is no one to remind or report to the supervisors. Consequently, things do not get replaced or repaired soon enough. x. The food court has few drinks and items on the menu and the waiters and waitresses are not trained. Marketing i. One of the greatest weaknesses of the Shopping Mall is that it has no clearly defined target market. ii. In effect, there is no proper marketing plan. iii. No promotion such as new product launch, seasonal sale events, and special items sales and so on are carried out. v. Due to the centralization approach to management with nearly all the responsibilities resting on CEO, he could not give time to do market Survey. Human resource management i. The recognition and rewarding of certain workers in terms of their achievement is not carried out consistently. It is done casually and arbitrarily and thus leadership failed to encourage hard work and celebrate achievements. ii. The lack of continual capacity building of the staff, as was seen with the cashiers and the staff in customer information sector, has severe negative effects on the growing numbers and demand of customers. ii. The pay and benefits of the workers are not clearly designed, thus lack incentive for workers. iv. The morale of the staff begins to decline. This affects the spirit of service given to customers. All the mentioned weaknesses create a high turnover rate. B. External Factors: Opportunities and Threats Opportunities v. â€Å"Let’s go shopping. † is a popular phrase among people these days. When they say that they usually mean going to a shopping mall. Even when not buying, people like to just stroll in the Shopping Mall to get air-condition, or a meet their friends in it.It is a good rendezvous because it is clean; it is easy to reach by public transport; it offers affordable prices and thus makes it very convenient. In other words, it is a very good place to attract people, especially the young, to spend money. vi. As m ore and more young people meet their friends or watch movies at shopping malls, the social attitude is somehow synonymous with having money to spend. The young could be very reliable and profitable target customers. If the Mall is designed to cater to them in terms of ambience, products, prices and services they would flock to the Shopping Mall. ii. Given a good pay and good work environment, many young people can be recruited to contribute to the rapid attainment of the objectives of the Shopping Mall. Young people are energetic and creative. If only their potentials were channeled into the right direction, they could make up a very strong and efficient workforce. viii. The location of the Mall is very strategic. It is located in a thriving business area. The population around the area is quite dense. There are many schools, training and language centers in the areas. Young people make up the bulk of the population.Many forms of public transportation reach the area. The car park is a major asset to the Mall. All these conditions offer a tremendous opportunity for the Mall to be very successful. Threats i. The main rivals near Blue Sky Shopping, Dagon Center and Gamonepwint and City Mart are doing very well. They could take all customers and gain their loyalty. ii. Recently there has been heavy traffic congestion near Myaynigone area. This could turn away potential customers to other less congested shopping malls. Long-term Business Plan Vision To be a leading Shopping Mall creating space and value for the young.Mission Through young, energetic, and creative workforce, we know the needs of customers and fulfill them with delivering the latest quality products at workable price, at convenient location and provide a perfect rendezvous and best customer services. Objectives 1. Strategic objectives i. To reinvent a new image of the Shopping Mall with a new name and a new organizational structure in 6 months ii. To attain 10% market share within a year and increase it yearly 2. Tactical objectives i. To put in place the new management system ii. To build workers capacity for skills and services ii. To give space for young leaders with their creative ideas and promotion to win loyalty of young people 3. Operational objectives i. Run the new management system effectively in three month. ii. Conduct human capacity building for supervisors, managers in 3 months. iii. Expend capacity building to the rest of the stuff in a year. iv. Elect at least 30 new potential leaders in a year 1. 2. Organizational Structure CEO Finance manager| | Marketing manager| | Human Resource manager| | General Manager| | Purchase manager| | Security manager| | | | | | | | | | | |Senior accountants| | Sale promotion manager| | HR executives| | Engineers| | Supervisors| | Supervisors| | | | | | | | | | | | Junior accounts| | event manager| | supervisors| | Supervisors| | Sector heads| | Staff| | | | | | | | | | | | Auditors| | Advertisement team| | Trainers| | sector head s| | staff| | | | | | | | | | | | | | Cashiers| | Public relation team| | staff| | staff| | | | | | | | | | | | | | | | Sector head| | sector head| | | | | | | | | | | | | | | | | | | | staff| | staff| | | | | | | | | Since all the sectors operate almost daily routine retailing, the organization is re-structured as seen in the chart above.Clear job description and special authority are given to sector heads to make key decision as they are more familiar with every day market and situation. They will work closely with the CEO in attaining the Shopping Mall goals and sales targets. In this sense, decentralization is more conducive to the Mall success and fit more into the management system. The chain of command, which means, â€Å"an unbroken line of authority that links all individuals in the organization and specifies who reports to whom†, can be seen from the organizational structure.In a Shopping Mall setting, daily retailing of a wide range of products need to have a very strong and clear scalar principle, which clearly defines authority and responsibilities. Span of Management Chief Cashier Staff 1 Staff 2 Staff 3 Staff 4 Chief Standby Staff 1 Staff 2 Staff 3 Staff 4 Replace inspector Staff 1 Staff 2 Staff 3 Staff 4 Customer service Staff 1 Staff 2 Staff 3 Staff 4 Sector Head Since the business is retail and each floor containing one sector, it is easier to organize the span of change.Each sector has a sector head with standby inspectors, cashiers head, replacing head immediately under him/her who would supervise about ten staff. In diagram one sector would look like this. 1. 3. Leadership 1. 3 The Importance of leadership in a rapidly changing world The importance of a leader in an organization can be compared to the captain of a ship. The captain not only directs the ship where to go, he/she encourages the crew member, supervise the crew to serve the people on board, and look forward to the danger, take the route that would give maximum satisfacti on during their ride on the ship.Without a leader with excellent management and interpersonal skill as well as with a clear vision toward the future, the crew will be disoriented, the ship would not get to its destination, the journey would be unpleasant, and the ship might even sink amidst the prevalent dangers in the sea. Due to the weakness of leadership in many areas as mentioned in situation analysis, the Blue Sky Shopping Mall got into a bad shape and is not reaping profit. In this age of rapid change in technological advances in telecommunication, social transformation, mass media culture and globalization, leadership must constantly adapt to these changes.If leadership in an organization could not keep abreast with the paces of these changes, that organization will certainly fall behind. The case of Blue Sky Shopping Mall is an example of the failure of leadership to respond to changes. The number of customers increased in the first years; however few security personnel coul d not cope with increasing numbers. As the number increased it demanded better and efficient services. In this respect also the CEO failed to respond. Moreover, CEO could not respond rapidly to a number of problems, which were actually, opportunities; especially he failed to look into the market demand of the young.As more and more people are becoming more aware health and environment issues the retailed products should co-respond to these shifts of expectation. In terms of ethical issues, the low wages of the staff in proportion to the hours of work, the Blue Sky earn a bad image in the public’s eye. When the CEO became too distant from the staff, and failed to share the values and views of the customers and the employee, the dynamic of the organization was very much weakened. All these shortcomings pointed out that leaders should constantly cooperate in the organization they lead. In other words, leadership is the lifeblood of an organization. . 4 Organizational Control As seen in the organizational structure chart, individuals at the top management will work closely with all the employees. Since the organization will continue to use existing employees only serving more or less the same products, the organization control focus will be on concurrent control and feedback control only. II. Marketing Marketing Strategies A. Segmentation Considering the opportunities in situational analysis, the strategic location of Blue Sky in an area which is populated by young people and people of white color jobs, we segment our market in the following categories. . Location 2. Age group 3. Income B. Targeting Since Shopping Mall gives retailing services, the most profitable portion of customers would be young adult, especially women, given the fact that the working population of young adults in Yangon is female aged between 16-35. Another target is families. Not only newly-wed but also families with children can be assumed to have a certain regular income. They make up a significant portion of population compared to people age-group below 18 and above 60. Still another target within the income group is people with middle income. They have considerable income to spend.Therefore, the Shopping mall should create value for this class of people. C. Positioning Shopping Mall can meet the needs of the market tremendously since it retails a wide range of products. Therefore, the positioning becomes very important. According to the text book, positioning means a product should have a clear, distinctive, and desirable place in the market (Pre-MBA marketing Principle, p 24). Since Shopping Mall retails many kinds of products to different target of customers, it is very crucial to consider and plan positioning with great care and in great detail.To have a clear positioning, the Mall should stock all the relevant products to meet, at the maximum satisfaction, the needs of the targeted groups. Shortage of stocks or lack of varieties of certain products could affect customers’ expectation and could lose their loyalty. Thus, the supervisor of each sector should immerse themselves into the market and constantly try to fulfill the market needs. It could use the slogan â€Å"We have what you need†. Another element of positioning is the product must be distinctive. In this sense, the Shopping Mall should cater to the targeted customers.The Shopping Mall should earn a reputation that fulfils the specific needs of the young adults, the middle-incomer, and the families. For instance, for the female young adults, to get the latest fashion and cosmetics, they should associate the Shopping Mall with their needs. Or when they want to meet their friends, they should automatically choose â€Å"Blue Sky Shopping Mall†, ‘because that’s the best place young people hang out. ’ Excellent service should be another distinctive feature of Blue Sky Shopping Mall. The last element of positioning is desirable. What could be more desirable for customers’ value than low price?Since the target group is the middle income group, the low price positioning would appeal and meet group’s need. In summary the marketing strategies can be shown in table as follows. Segmentation| Targeting| Positioning| location| Yangon, especially Myaynigone and Hledan| Clear place – â€Å"We have what you need. †| Age-group| Young adults and adults| Distinctive place – young and lively ambience| Income| Middle income group| Desirable – affordable to low price| Marketing Mix a. Product/customer solution Retailing service is considered as a product. In fact, it creates the best value or solution for customers’ needs and problems. b.Price/customer cost As mentioned in marketing positioning, we consider affordable to low price to be attractive to our targeted customers. c. Place/convenience Blue Sky Shopping Mall. A convenient place where all the public transport can reach, an ambi ence especially designed for and cater to the young, a place of great value to customers where their needs are fulfilled with the best service. d. Promotion/two-way communication In line with our objectives and target customer needs, promotions in the form of fashion shows, movies festivals, today special food, and some other creatively appealing to the young populace should be carried out.Frequent sales could promote the interest of the customers. III. Human Resource Management To respond to the high turnover rate, besides installing a new organizational structure, the following issues should be addressed adequately. The Human Resource Team should tackle the following areas: 1. Job, role, competency and skills analysis The first step in planning a workforce to fit into a new organizational structure, a comprehensive job, role, competency and skills analysis of the existing resources should be carried out in order to allot them in the areas they are best at.That way the organization will move smoother and faster to achieve its goal. 2. Training and Development After the analysis of job, role, competency and skills, a careful plan should be drawn up to train and develop the employers beginning with the most critical teams such as section heads, security personnel, cashiers and customer information services. 3. Creating a clear work schedule Part of the problem we saw in situation analysis was the lack of clear schedule, which causes much confusion and even quarrels among the workers. A schedule with reasonable amount of rest and clear timetable for lunch shift should remedy the chaos. . Pay, benefit and reward system As an incentive to promote high performance, reasonable pay according to competency and skill should be clearly made known to employees. Besides, benefits such as holidays, medical insurance, bonuses plan should be put in place and implement them consistently and transparently. Rewards for extraordinary performance as in sales or customer relations hip or taking up responsibility with good attitude should be promoted. This will not only encourage them to realize their potentials but also motivate the workforce to strive toward better performance. 5.Opportunity for personal development Since the majority of the employees are young people, the management could pick from the large pool of talents to drive forward the organization with momentum and efficiency. In this regard, potential workers should be handpicked and trained for specific task, within a framework. This is beneficial not only to the employees but also for the organization. 6. Warm and creative work environment enlivened by shared vision Most importantly, the employees are not just paid workers. They are human beings with feelings and emotions. And work has value for their lives.Thus work should give them meaning for their lives. To that end, the work environment should be warm and there should be space for their creativity as the worker population is young. If a vi sion of the Shopping Mall could be shared, it would facilitate the process. One important point is that unlike the top-down management, the people in higher position should show care, concern, and intimacy with all the employers. Only then, work environment could be warm and creative. Conclusion The business plan for Blue Sky Shopping Mall shows the overall plan of how to revitalize the Shopping Mall.The report points out areas of weakness where the Shopping Mall needs to tackle to improve its growth. The report believes that the recommendation gives a picture of what the Blue Sky Shopping Mall would look like after re-structuring the organization and imputing vision, mission, marketing plans and plans to reshape the workforce. There is a great chance that Blue Sky Shopping Mall can regain its former glory. Reference list: * MBA premaster course of business administration * http://www. capitaland. com/about-capitaland/our-mission * http://www. capitamallsasia. com/corporate/our_visi on_mission. aspx