Management Function Essay

All organizations depend on group efforts. Teamwork and group action have become necessary in every day of life, and it will lead to the success in group efforts. The management will be very important to the groups because it can helps to achieve group goals, provides maximum resources to his or her team, minimizes the cost, establishes sound organization, and generates more welfare to his or her team. Management functions, manager’s skills, management control and strategic management process will be analyzed to define how an excellent manager should be. Four Management Functions The four management functions comprise the primary functions to the managers. These four functions which are planning, organizing, leading and controlling can be used in all fields of management, be it at a factory, a super market, a restaurant or even at home. Planning Managers need to perform the planning function to define goals, establish strategies to achieve these goals and develop sub plans to coordinate activities for his or her team members. For example, as a merchandising manager in the supermarket chain business, the manager needs to define what the target customers like Western people, South East Asia people or East Asians the supermarkets want to attract. After define the goals are attract more and more Asian-Canadian families, the manager need to establish strategies like bringing Asian-Canadian families fresh foods and introducing the diversity of Asian food culture at stores that offer exceptional convenience, service, and value to those Asian customers. Then, lots of sub plans like which kind of merchandises should be imported and the merchandises’ price setting strategies will be developed by the manager and pass to different buyers to follow up. Organizing Managers need to arrange job duties to his or her team members to achieve the organization’s goal. The managers will determine what tasks should be done, who will responsible for the task and how the tasks are to be grouped. For example, as the merchandising manager in the supermarket chain business, the manager needs to organize his or her team to different group and each group will in charge of different merchandises by categories like drink, snack, rice oil and noodles. After different teams have been organized, each team’s supervisor will be selected by the merchandising manager. The buyers will report to their supervisors and the supervisors will report to the merchandising manager. Leading Managers need to lead their team members to achieve the organizations’ goals. The leading function will require the managers to provide good communication skills and lead ship skills to resolve the behavior issues. As the merchandising manager in the supermarket chain business, some conflicts will be appeared with different buyers. Buyers will provide some products that buyers want to promote to be the promotion products in each week’s flyer, due to the limited space of the flyer, not all the products will be selected to be the promotion products by merchandising manager. The manager will use the communication skills and lead ship skills to let the buyers know why their products cannot be selected and what they should improve next time. Controlling The last management function is controlling. Managers need to evaluate and monitor employees’ performance and make sure every step is correct to achieve the goals. As the merchandising manager, the merchandises’ sales are the key performance index to evaluate buyers’ performance. Usually, merchandising manager will use category sales to evaluate each team’s performance and total stores sales’ growth percentage to evaluate the whole department’s performance. Skills Required by Managers Technical skills, human skills and conceptual skills are three most important skills required by managers. Though these three skills, managers can know more about the specified filed they are working, have better interpersonal relationship with people and have more ideas when facing the complex situations. Technical skills Managers need have strong technical skills in the specified filed because the managers need to deal with his or her employees when the employees face some difficulties during the working. The managers will give help and lead the employees to solve technical problems to achieve the organizations’ goals. For example, as a merchandising manager in the supermarket chain business, he or she must have strong purchasing skills, budgeting skills, know well with different merchandises that are sold in stores and inventory management skills. Human skills Managers must have ability to work well with different employees. Managers with perfect human skills, they can receive more and more trust from their employees and the employees can make full effort to achieve the organizations’ goals. As the supermarket chain’s merchandising manager, he or she should get well not only with different buyers, but also with store levels’ employees. If the manager can work well with store levels’ employees, the products that they imported can be displayed very well and follow merchandising department’s pricing strategies, as a result, the company’s goal can be achieved easily. Conceptual skills Managers must have ability to analyze and provide solutions when facing difficulties or complex situations. In the business world, top-level management positions usually required to have this skill. For example, as the merchandising manager in the supermarket chain business, when the new store will be opened, the manager will use conceptual skills to analyze what the best location is, what the best merchandises will be on shelf and what the target sales will be generated and so on. Also, if one of categories’ sales was continuing decreasing in the past several weeks, the manager need provide insight and solutions to the category team to help them overcome the difficulties. Two Views of Management Control Omnipotent view of management: The traditional view of managers is that they are directly responsible for organizations’ success and failures. When the organizations’ performance is poor, the managers should provide reasons and solutions; when the organizations’ performance is good, the managers should get the credit even if they only do little things to achieve the goals. Symbolic view of management Managers only have limited effects on organizational outcomes and performances because of the large number of factors like customers, competitors, government policies and economy outside the control of managers. Both omnipotent view of management and symbolic view of management purpose are to achieve organizations’ goals and provide the excellent performance to the organizations. As well, either omnipotent view of management or symbolic view of management, managers needs to make decisions within organizations when something happened. Like the merchandising manager in the supermarket chain business, if stores’ sales are continuing decreasing, whatever the reason is merchandises’ price are not attractive or the outside economy is in downtrend, the manager need provide insights and solutions to improve sales for the company. However, there are big differences between omnipotent view of management and symbolic view of management. The managers will in charge of everything for organizations’ success and failures under omnipotent view of management; but under the symbolic view of management, lots of external factors will affect organizations’ performance, so the managers do not have big effects on organizational outcomes and performances. As the merchandising manager in the supermarket chain business, when stores’ sales are continuing decreasing, the manager will think if customers do not like the merchandises that they imported or the merchandises’ price is too high for the customers under omnipotent view of management, then the manager will provide solutions to improve the sales; however, under the symbolic view of management, the manager will think about if stores’ sales were effected by strong competitions in the market or the downtrend of economy. Strategic Management Process Step1: identify the organization’s current mission, goals and strategies Explain: The mission, goals and strategies of an organization are very important to employees, especially for managers. Managers need to create scope work by step to achieve organizations’ goals, missions and strategies. Example: A supermarket Inc. mission is that attract more and more Asian-Canadian families, bringing Asian-Canadian families fresh foods and introducing the diversity of Asian food culture at stores that offer exceptional convenience, service, and value to those Asian customers. The merchandising manager need bring in more Asian products to the stores to attract customers. Step2: do an internal analysis Explain: An internal analysis about the organization’s resources and capabilities will be done to indentify the organization’s strength and weakness Example: The merchandising manager will do an internal analysis to indentify the company’s strength which is have different kinds of Asian foods cross grocery, produce, seafood and bakery and weakness which is lack of experience about what kind of western foods is suitable for Asian customers. Step3: do an external analysis Explain: An external analysis about the business environment, government policies, and competitions will be done to help managers know opportunities and threats for organizations. Example: The merchandising manager will do an external analysis to know the opportunities and threats for the company. Opportunities are more and more Asian families move to Toronto and lots of labor supply in the market. Threats are the strong competitions exist in Toronto’s Asian supermarkets field. Step4: formulate strategies Explain: After identify organizations’ missions and finished internal and external analysis, managers need formulate strategies to achieve organizations’ mission base on SWOT. Example: The merchandising manager formulates the strategy which is open more new stores to achieve the company’s mission. More and more Asian families move to Toronto and lots of labor supply in the market, new stores will be easy opened and can attract more Asian customers. Meanwhile, strong competitions exist in the market, the company need to increase the number of stores to low the products’ cost. Step5: implement strategies Explain: After managers formulate the strategies, lots of members will be involved to implement the strategies to achieve organizations’ goals. Example: The merchandising manager will request his or her buyers to import more Asian merchandises for new stores, work with the store operation department to decide the layout of stores and work with finance department about new stores’ budget. Step6: evaluate results Explain: After the strategies were implemented, managers need to evaluate the results to see if achieve the organizations’ goals and make any adjustments if necessary. Example: After new store was opened, the managers need to calculate if store’s sales had been achieved the target. If not, the manager will provide solutions to improve store sales immediately.

Hul and Nirma Company Full Year of Comparison Essay

The success of Nirma’s umbrella branding strategy has led to a change in the competition’s marketing strategies, as well. Many of Nirma’s competitors are now consolidating their brand portfolio and consequently gaining more bang for their advertising rupee. In a changing market environment, the company has relaunched Nirma Yellow Washing Powder and Nirma Beauty Soap, two of its strongest brands. Nirma Yellow Powder is being re-launched with improved formulation and new advertising. This is an extension of the original ad which will return after the launch is over. Nirma Beauty Soap is being re-launched with a new shape, fragrance and a smarter, brighter pack to improve shelf visibility. Promotion Nirma’s success is synonymous with its advertising and marketing strategy. When Karsanbhai Patel started selling his detergent powder, he decided to call it Nirma, derived from the name of his daughter Nirupama. In the early years, the Nirma packet featured a lady washing a garment. Later, however, the design was changed and an image of his daughter was featured on the pack. The white dancing girl, featured in Nirma’s television advertising, is perhaps the most enduring image of Nirma. Though Ms. Patel passed away in a car accident, she continues to live on in the corporate logo and the best selling brands of the company. Nirma’s advertising has always focused on the value-for-money angle. Its simple and catchy jingle – Dudh si safedi Nirma se aye, rangin kapda bhi khil khil jaye – has continued to echo in the drawing rooms of middle-class Indian homes through the decades. While the jingle stresses on the product, it also salutes the savvy and budget-conscious Indian housewife. The jingle, which was first aired on radio in 1975, was broadcast on television in 1982. It is one of the longest running jingles and the spot has seen very few changes since the time it was first aired. For the re-launch of Nirma, the company has developed new spots but they are variations of the old favourite. Once the re-launch is complete, the company plans to go back to the original advertisement. Nirma’s promotion strategy, too, has many firsts to its credit. The company pioneered product sponsorship through the electronic media. Besides, the company has developed a unique advertising strategy – new products are launched with no advertising support. Once the distribution glitches are sorted out and the product reaches the shelves of retailers, the company begins to advertise it. The umbrella branding strategy helps to give new products instant recall without increasing the advertising expense.

Transformational Leadership in Sianguna Highschool Case Study

Transformational Leadership in Sianguna Highschool - Case Study Example Siangua Highschool implements a leadership system wherein the all stakeholders participate through a school committee called the Site Council. The Principal acts as a facilitator. In this leadership system all are encouraged to participate and thus are given the opportunity to voice out their ideas, concerns and suggestions. This is the very essence of transformational leadership wherein "the leader must master the process that involves a whole organization in what amounts to a collective creation." Because of the need to get everybody involved, active participation cannot be avoided. Hence, with everybody given time to voice their thought, debates, and a lot of discussions ensue before plans or decisions are reached. Interviews contained in the report evidences that there are a lot of e-mails, messages, memos are passed prior to every meeting thus are just part of the additional costs that the school has to suffer. Processes are lengthened such that before a decision is reached on a n issue it will have to pass through a lot of debates and discussion. Thus by the time a decision is reached the same may be too late to pass upon urgent matters. The possible solution to hasten the process of decision making is to create small groups to address specific concerns.

Economics Essay Example | Topics and Well Written Essays - 2500 words - 6

Economics - Essay Example Next it delineates the strategic choices at the disposal of corporate entities in the process of planning and policy making. The study also focuses on the strategic significance of the changes that have taken place in the corporate environment over the years since the times of such catchy phrases like Schumacher’s â€Å"small is beautiful†. According to the lead article in the Economist on the 29th of August 2009 big corporate entities are coming in to vogue again because they have discovered a master strategy to survive in the all too important strategic competitive environment. By extension environmental factors play a very significant role on the corporate strategy and policy making environment. The extent to which such environmental factors play a role in determining the directional thrust of the corporate strategy of the big business corporation concerning competition and corporate social responsibility (CSR) can be known through an analysis of the theoretical approaches recommended by modern management gurus. This paper would adopt the five principle environmental factors suggested by Pearce & Robinson (2002). The authors suggest a theoretical framework of five significant environmental factors in order to enable leaders and managers of corporate entities to understand the nature and the extent of the impact that environmental factors have on business organizations. Above all according to the authors big businesses are more and more affected by them. Customers are very important for the business organization in determining its corporate strategy. For example customers can either make or break a business organization on the basis of demand. The emerging big corporate entity depends on customers’ perceptive behavior to such an extent that the former has very little freedom in deciding the corporate strategy and production policy in any other possible way. The purchasing power of the modern customer is unlimited

Training Faculty to Teach Online Research Paper Example | Topics and Well Written Essays - 750 words

Training Faculty to Teach Online - Research Paper Example   There is also the principle that learning materials and measured teaching outcomes will contain and provide appropriate information. By appropriate information, it is expected a well-trained faculty would focus their learning resources on the provision of information that directly matches what the online program is designed to accomplish. What is more, there is a principle that measures on timely the information given by the faculty is considered by learners to be. This is an important principle, given the fact that learning information is dynamic and subjective to time. By implication, the process of evaluation looks at the ability of faculty to be on top of issues and abreast with time so that information delivered will not be considered as not being relevant for the time for which it is being delivered. Lastly, there is a principle that dwells on the need for faculty teaching to be self-evaluative. Effective management of teaching in the online training programShattuck and Ter ry likened the management of teaching effectiveness to the sustainability of effective teaching and learning that is attained from online programs. With this said, it is expected that during online training programs and even by the close of the programs, there will be principle that checks for the sustainability of effectiveness. One of these principles for the management of teaching in online training programs is the need for there to be faculty support services provided in specific areas related to teaching online.

State capitol Essay Example | Topics and Well Written Essays - 1000 words

State capitol - Essay Example it was precisely constructed in the year 1619 and was serving as the Virginia House of Burgesses and since then has been in place in its very own state reflecting its grandeur and poise in terms of the rich American political history that the country enjoys. The formal proceedings and handover of the building which led it to becoming the Capitol took place in 1788 (Spears, 2012, p. 86) under the then Governor Thomas Jefferson who would go on to become the President of United States of America. Through the different phases the building has seen numerous developments and improvements as the field of architecture and developmental works saw progress. Numbers of stories have been added to the building making it more accommodating and larger in its existence through timely modifications and additions. Underground constructions have been established which have enabled accommodating and adjusting more set of individuals and visitors in its parking areas and other surrounding localities. Defined as a model pattern based on the cubic architecture and structural design (Giordano, 2012,p. 130), it is considered novel on the account of political standing, the design so followed and the richness in terms of the architectural richness that it possesses within itself beholding the rich history spanning over more than two decades. Another significant existence of the building is the fact that it has been crafted through the ideas of the French professional craftsman who worked on it and designed it on the request and instructions of the then governor Thomas Jefferson. Owing to its importance in the context of the overall political and American civil life society, the place is a center of attention and a central hub towards the visitors from the various states within United States of America and to those who travel United States of America and have some level of affiliation and interest in

Procurement and Inventory Management Essay Example | Topics and Well Written Essays - 2500 words - 1

Procurement and Inventory Management - Essay Example Better working practices are never achieved because Sound Electric Limited lacks a clear policy document or procedures of operations which touches on contracting and purchasing.There is poor record keeping technique such that it is always hard for the company management employees to retrieve updated data along with more current entire company’s level of stock. It is also hard for the auditors to retrieve the same data a thing that will result in improper auditing thus creating room for theft in the company. The resultant effect is the failure in closely controlling the company’s working capital thus failing to monitor correctly the true business progress. The whole system lacks accountability due to the fact that stock control and purchasing performance are not very well monitored making the staff determine their own precedence thus unbalanced cost considerations a thing that can greatly contribute to the failure of the company. Invoices are settled without a delivery p roof or even a certification as to whether the items received are the actual quantities reflected in the invoice. The company has been greatly undermined by the suppliers who feel that Sound Electric Ltd has poor specifications. There is lack competition when it comes to purchasing, requires no confirmation as to the obligations met by the contractors, does not negotiate for the price reduction, the company’s contracts fail to have conditions attached and lacks important knowledge about the contractor’s financial capability.

Prostate Cancer Annotated Bibliography Example | Topics and Well Written Essays - 1250 words

Prostate Cancer - Annotated Bibliography Example The article goes further to suggest that physical activities are crucial at this point because they improve one’s psychological and physical well being. In addition, a physical activity intervened lifestyle slows or reverses a declined quality of life. This study suggests that no research so far has ever attempted to evaluate an improvement multiple QOL domain intervention in prostate cancer patients under androgen ablation therapy. The study used a randomized control trial design for active life after cancer to evaluate the efficiency of physical activities interventions in the improvement of QOL of patients under this therapy. In addition, a group of lifestyle program of a 6 month behavioral skill training group was compared to a standard care and educational support program. The objective of this study was to present baseline information that would exemplify the QOL of the chosen sample. The findings indicated that married participants were less psychologically distressed a s compared to those who were unmarried. The limitation to the study was that the researchers experienced challenges in recruiting the participants. This study is relevant to the case study presented because Massri needs to perform more physical activities in addition to his golf to improve his health status. He is lucky to be married to Aziza, hence; he is likely to be less psychologically and physically distressed. Hoyt, M.A., Stanton, A.L., Bower, J.E., KaMala S. T., Litwin, M.S., Breen, E.C. & Irwin, M.R. (2013). Inflammatory biomarkers and emotional approach coping in men with prostate cancer. Brain, Behavior and Immunity, 32, 173-179. doi.org/10.1016/j.bbi.2013.04.008 The objective of the above article was to establish whether emotion coping is connected with psychological and physical health outcome improvement. The study was specific to prostate cancer related stressors in comparison with previous research, which was characterized

Discuss local, state, federal taxation of a good Essay

Discuss local, state, federal taxation of a good - Essay Example This has produced a corresponding decline in the effectiveness of the tax as a revenue raiser, because the demand for goods has declined. Demand for services has risen, but services have been excluded from the base of taxable items, hence it does not contribute to state revenue. The shift in consumer demand from goods to services may be due to the taxation of goods as opposed to non taxation of services. But Tannenwald (2002) notes that cyclical influences can also shape demand, which may lead to an increase in State revenues. The explanation offered for this phenomenon is that tax consumption is more pro-cyclical than tax preferred consumption. When interest rates are low and the stock market is strong, consumers tend to spend freely on taxed items, which results in a boost to the economy and contributes a greater share of funds to State revenues. But as consumers continue to spend more on taxed goods, the level of savings also goes down because consumer debt keeps increasing. As consumer debt rises to a high level, there is a shift in consumer demand from taxed goods to untaxed services, which results in a contraction of the economy and a decline in the revenues earned by the State.(Tannenwald, 2002). With an increase in outsourcing and the production of goods at cheaper locations, consumers may still prefer to spend on taxed items because the goods overall have become cheaper, so that despite the tax the goods may still be priced at competitive rates (Tannenwald, 2002). Taxes play an important role in the final price of the product, since a higher tax on a particular good will make it less attractive for consumers to purchase, since the price of the good in the marketplace will be higher. In such a case, when the economy is strong, there may be adequate sales of taxed goods but when consumer debt rises and the tax remains high, the shift in consumer demand to services will result in a fall in

HRA340 MODULE 5; Training Project, Part 3 Essay Example | Topics and Well Written Essays - 750 words

HRA340 MODULE 5; Training Project, Part 3 - Essay Example The firm can also use social media to offer training since it will save the firm from travelling expenses if all the employees were to travel at the physical premises so as to receive training. (Bacon, 1999). Sales representatives who may be interested in using motorcycles may use interactive multimedia training so as to learn how to ride motorcycles followed by a proficiency test to see how the employee knows how to ride the motorcycle Technology-based learning enables the trainer to get more of the learner’s involvement compared to any other environment. Besides, the trainees have the advantage of learning at their own pace such as through interactive video, PC and phone-based programs, along with interactive multimedia. These technologies are cost effective to the firm to the firm in the long-run, but costly in the short-run since it quite expensive to install internet infrastructure and purchasing computers. Simulators are described by Noe (2013) as an imitation of real work experiences. The simulators may be used to train the new recruits on how to talk with new customers and convince them to buy in a simulated environment. In addition, the motorcycle-sales representatives could utilise simulators to practise responding to dangerous riding circumstances. However, simulators are very costly for a firm like Binz. Purchasing simulators may cost about $5000. Shifting right into work is regarded as one of the most effective ways of training. The trainees will read manuals to get gain knowledge on various tasks in the sales department. The trainer could also use the internet so that the trainees could post their questions regarding the specific duties that will be answered by the trainer. On-the-job training offers employee the motivation to commence a job. Studies have shown that individuals learn more effectively when they learn hands-on. In this case, the new sales representatives could work with the older employees who would teach them how to carry

Isolation of Essential Oils from Eugenol Essay Example for Free

Isolation of Essential Oils from Eugenol Essay Anyone who has walked through a forest or who enjoys the variety of fragrances that flowers have to offer knows that many plants and trees have their own distinctively pleasant odors. These odors are due to the volatile essential oils, many of which have been prized commodities since ancient times. If a list of commercially important essential oils was compiled the list would exceed 200 essential oils. Thyme, garlic, peppermint, and spearmint are but a few examples of the many essential oils used in commercial goods. Essential oils have many applications in the world that can range from flavor enhancement to perfumes. Some oils have also been found to have medicinal properties such as antibacterial and antifungal abilities. Chaulmoogra oil is one of the few know curative agents for leprosy. The oils can also be used in the paint industry, where turpentine is used as a solvent for many paint products. These oils are often found in the intracellular spaces and glands of plant tissue. The oils may be located throughout the entire plant, but are often concentrated in the seeds or flowers of the plant. Many of the essential oils are steam-volatile and can undergo steam distillation to isolate the oils. Another method of oil extraction from these plants is through both solvent extraction and pressing methods. The functional group that is mostly responsible for the characteristic odors and flavors of fruit and flowers is the ester. Although the ester composes most of the scents it is not totally responsible for all scents. Beside the ester functional group an essential oil can also possess complex mixtures of hydrocarbons, alcohols, and carbonyl groups. These compounds usually belong to one of two groups of natural products called terpenes or phenylpropanoids. Investigation of the essential oils in the nineteenth century found that many of the pleasant odors we obtain from nature contained exactly 10 carbon atoms in the compound. These 10-carbon compounds later became known as terpenes if they were hydrocarbons. If the compound contained oxygen in an alcohol, ketone, or aldehyde functional group it was called a terpenoid. It was eventually found that minor and less volatile compounds containing 15, 20, 30, and 40 carbon atoms also exist that give an odor. Since the 10-carbon compounds were at the time called terpenes they changed the name to monoterpenes. The other terpenes were classified in the following way. Class

The Implication of EPOS Systems

The Implication of EPOS Systems William Hill is a major bookmaker worldwide, with over seventy years experience in offering betting services.   It is currently one of the leading gaming companies in the UK, where it operates over 1600 betting shops, serves over 800,000 betting slips each day via phone (standard and mobile), and recently began Britains first interactive digital television channel devoted entirely to gambling (Lee 2004).   It is the countrys most successful Internet gambling company in a country where over four million people bet in online gaming rooms every month (Thomas 2004).   William Hill was the first major gaming organisation to offer online betting, opening its website in 1996 (Lee 2004). The William Hill culture pairs low-cost, low-risk emphasis in businessdecision making with a willingness to be innovative, particularly inregards to use of technology (Hargrave 2004)).   This makes it all themore surprising that the organisation has waited so long to implementelectronic point of sale   (EPOS) machines in its betting shops.   Whilethese are expected to make the company more profitable, efficient, andcompetitive, the implications of these machine span across theorganisation.   Of specific interest is the effect of the system on thepeople involved, traditionally an important part of William Hillssuccess.   This study seeks to consider the possible benefits and losses to William Hill from the implementation of the EPOS system. Three specific areas of consideration are the effect of the machines oncorporate and local shop culture, whether the EPOS system will increase efficiency, and whether the system will contribute to increased competitiveness. The objectives of this study are to critically examine the introductionof an electronic point of sale system as implemented at William Hill.  Specifically, this study aims to examine the strategic considerationsof the EPOS and how its effectiveness can be optimised.   The studybegins with a review of literature and research available about WilliamHill, the firms operations, and EPOS systems in general.   ThisLiterature Review serves as a foundation for understanding analysis ofthe rest of this work.Following the Literature Review, of first consideration will be theeffect of EPOS on the corporate and local culture of William Hill.  Will EPOS enhance or detract from positive aspects of current culture?  Will the increase in customer information and the ease of its analysisdraw new customer groups into traditional betting shops?   If so, whatwill be the effect of this on the shops and their regulars?  Ã‚   How willstaff react to the changes caused by the EPOS system?   W ill EPOS changehow customers and staff interact?   How does the introduction of EPOScompare to the effect of technological advances on workers in general? The second objective is consideration of the efficiency of the EPOSsystem.   It will be compared to the traditional manual betting systemit replaced, with analysis of improvements in or negative effects ontime and cost.   Has William Hill become more efficient, and moreimportantly more effective, with the introduction of EPOS?   It is abetter organisation as the result of automation?   Finally, the study seeks to project the effects of EPOS on WilliamHills competitiveness.   Will the system encourage customers to switchto William Hill?   Can the organisations market share be expected toincrease?   What are the overall results on a holistic, corporate levelof automation, and how can the firm best implement such technologywithout undermining its established strengths?   What is the moststrategic way the system can be implemented, and how can it mostgreatly benefit the organisation as a whole?This study seeks to address these questions through the study ofinformation and data provided by William Hill and in literatureavailable about the firm, similar gambling companies, and electronicpoint of sale systems in general. It is anticipated that the EPOS system will be found to increaseefficiency and competitiveness for William Hill, albeit at some changeto and possible loss of culture.   This is anticipated to be an overallpositive innovation, however, increasing profit across several gamingplatforms, allowing for improved marketing activities, and increasingmarket share for the company.   The system is anticipated to provide afaster, more accurate, and more secure way of processing bets, inaddition to generating data relevant for market analysis. Many articles about William Hill, including the companys ownpublications, describe the organisation as an innovator (William Hill2005).   This is certainly the case, and low-cost, low-risk strategyhasnt kept the firm from pursuing technological advances and marketexpansion in many areas, the most recent being the installation of anEPOS system in its betting shops.   The company currently provides fourvehicles for gambling:   traditional betting shops, phones-basedbetting, including via mobile phones, Internet gaming, and interactivedigital television.   Plans to expand into casino gambling have beentemporarily shelved, as the Gambling Bill under consideration by thegovernment now appears less likely to benefit gaming organisations whoexpand into casinos (WH Annual Report 2005).   All of these may beeffected and possibly benefit from the introduction of EPOS machines.  Ã‚  EPOS can support all four major betting vehicles, and enhance how theycan work toget her to increase the number of customers, repeatcustomers, and customers spend.Traditional betting shops, also called retail shops, remain thebackbone of William Hills operations.   The retail division contributed166m of the pounds 232m, or almost seventy-two percent, of the totalprofits brought in by the organisation in 2004 (WH Annual Report2004).   The shops also provide a credibility and recognisable brandseen as contributing to the success of other gaming vehicles (Thomas2004).   The retail shops are the location of the EPOS machines, and arelikely to be most effected operationally and culturally by theirimplementation.   Demographically, the customers of William Hillsbetting shops tend to be older than customers using other bettingvehicles (Hargrave 2004).   It has been observed that shop customers arealso predominantly male. Internet gamblers are demographically younger, and many have neverentered a retail betting shop (Hargrave 2004).   They often participatein a variety of onlin e games in addition to traditional odds betting.  They are likely to hop from site to site, and show little loyalty toany one gaming organisation (Thomas 2004).   Online gambling firms musttherefore work harder to differentiate their site from the many othersavailable.   As over time a natural consolidation of the market islikely to occur, those organisations that can reinforce their marketpositioning are more likely to succeed (Thomas 2004).   William Hill hasthis positioning as a sector leader with multiple gambling vehicles.  This positioning will be enhanced by the EPOS system, a way to linktraditional shops with their credibility and market presence, to thefirms online offerings.   The convenience of EPOS and the organisations electronic vouchersystem could encourage online gamblers to consolidate their gamingactivity with William Hill.   The EPOS support William Hillsintegration of their online business and local shops, with onlinecustomers now able to deposit mo ney into or draw from accounts at anyWilliam Hill shop.   The voucher system allows customers to depositmoney or withdraw winning from any William Hill shop.   This wasoriginally handled over the counter; however, the new EPOS system nowallows the entire system to be handled by machine (Anon 2003).This has the potential to increase both shop-based and onlinebusiness.   For example, a thirty-something career woman might behesitant to frequent one of William Hills betting shops, perceivingthem to be historically male-dominated, older, and perhaps evenworking-class.   However, she is on her way to do some shopping, anddecides to quickly draw off her recent online winnings.   She stops in abetting shop, and has a positive experience.   It is clean, well run,with professional, courteous staff.   She can draw on her winningseasily using the EPOS terminal.   Because the woman has a favourableexperience with the product and people in her transaction, she issignificantly more likely to use the EPOS terminal again, and to stopin the betting shop.   William Hill has possibly converted an onlinecustomer to an online and shop customer.   Similarly, some shop regulars may eschew credit cards.   Online gamingis therefore unavailable to them.   EPOS in combination with WilliamHills combined online and shop accounts allow these customers todeposit cash at their local betting shop, and use those funds foronline bets.   This has the potential to further increase the firmsonline customer base.   Internet customers may be further intrigued bygaming options offered online that go beyond their options via shops orthe phone.   Using the Internet to place traditional bets, for example,increases the chance these customers will try arcade or casino gamesavailable online, thereby increasing the types of product purchased(Anon 2003).   This expands the purchase mix for William Hill, andincreases the likelihood of larger total purchases per customer.A concer n for management should be the potential of one gaming vehiclesuch as the Internet to draw customers away from the firms othervehicles, in effect cannibalising its own operations one for theother.   William Hills most recent Annual Report acknowledges thisissue (2004).   The company has analysed profit and other financialdata, and is confident that no cannibalising is taking place.   Allthree gaming vehicles in operation for the year have shown modest toimpressive growth, with no indication of one taking customers at thedetriment to the others (WH Annual Report 2004).Phone betting, including mobile betting via WAP technology, is seen bymany as the gaming vehicle of the future (Hargrave 2004).   The EPOSsystem could contribute to the expansion of phone betting by making iteasier to draw on winnings and deposit funds for future bets.   The OffTrack Betting organisation in New York City, USA, found lines andcustomer wait time reduced by up to forty percent at some outlets wit hthe implementation of various betting and point of sale machines (OTB2003).   The system can similarly support William Hills newest venture,interactive television.   There are questions whether the firms brandis strong enough to support a television channel, although thepotentials for increased revenue are significant (Hargrave 2004).   Theorganisation does not intend to broadcast many sporting or otherbet-producing events, given the prohibitive cost of doing so.   Rather,the television channel will offer number generated betting options, aswell as gambling games similar to those offered by the firm on itswebsite (Hargrave 2004).   This allows the non-computer literate toparticipate in betting outside of traditional shops.   Their anonymityand access to gambling increase, both of which have been linked toincreased consumer spend (Anon 2003).   Non-computer literate gamblersare no longer bound by the restricted hours of the betting shop, andcan play a variety of gambli ng games through their televisions(Hargrave 2004).   The EPOS s ystem supports this gaming vehicle in thatthese customers must have some way to deposit money for their gamblingactivities and withdraw any winnings they may have.   The EPOS systemallows them to do this conveniently and with the same discretionafforded to them by interactive television or the Internet gamblingvehicles.One potentially negative effect of the EPOS system is reduction ofcustomer loyalty.   Loyalty occurs when a consumer experiences goodproduct at a reasonable price and convenience, with acceptableservice.   If these expectations are met, the customer is likely torepeat the shopping experience.   Over time, the customer forms a habitof this shopping experience, which then develops into an attitude ofloyalty (Duffy 1998).   One component of loyalty development is staff,and in particular customers interaction with staff.   The peoplerepresenting an organisation and the service they provide can m ake orbreak a customers purchasing experience (Garavan 1997).   The EPOSsystem will replace some functions currently performed by people, whichmay have a negative impact on both customers and remaining staff.Repeat customers make up a significant portion of retail bets in thegaming sector, and many have established some form of relationship withretail staff.   These relationships contribute to the loyalty or habitsof customers, causing them to frequent one gaming retailer, and therebyincreasing the customer spend at that shop (Anon 2003).   This customersegment may feel overlooked with the replacement of some stafffunctions by machines.   For example, a man regularly frequents hislocal William Hill betting shop, gambling regularly as a hobby, but notto the gambling addiction level of play.   His visits to William Hillmay be for him the same as another persons frequenting a neighbourhoodpub; in this case he has the opportunity to interact with others whoshare his interest. The common denominator in such social interactionwill often be the shopkeeper or retail staff (Gamble and Gamble 2005).  If this social interaction is lost, the customer may switch to asimilar s hop operated by another organisation where such interactionis supported.   Fortunately for William Hill, the other major bookmakerswith whom it competes have already implemented EPOS systems, makingthis customer loss less likely to occur (Hargrave 2004).The EPOS removes the feeling of being disloyal to shop staff by bettingonline instead of at their establishment, which could also potentiallycontribute to lost customers.   Customers who shop at one establishmentfor a long period of time may feel guilty or embarrassed when changingto another store.   They may try to avoid contact with staff from theirprevious shopping preference if they have been trying out other storesfor a period of time (Gamble and Gamble 2005).   With the reduction ininteraction between William Hill staff and cu stomers caused by the EPOSsystem, the customers may no longer have social need to continue to betexclusively or predominantly with William Hill.Another possible loss is to the William Hill culture, particularly thatof local shops.   Steve Smethurst quotes David Russell, William Hillsgroup HR director, as acknowledging, â€Å"Once we have that in place [theEPOS system], the requirements on shop managers to settle bets will begone:   that challenges the very core of what people have been doing foryears† (2004, 36).   For one thing, the introduction of the machinesreduces the number of staff required at each shop.   The company has nostated plans for layoffs, but also has not addressed the impact EPOSwill have on staff (WH Annual Report 2004).   This may be in part to thetraditionally high turnover in some segments of the gaming business,although more prevalent in the telephonist position that in retail shopstaff (Smethurst 2004).Management of gaming organisations need to examine the importance ofpeople in their product differentiation.   Consideration is called forin examining the fact that all the major betting shops now utiliseelectronic point of sale technology, and much of this is produced bythe same company, Alphameric Red Onion (William Hill PLC 2004).   If onecan access the same machines at any shop, and each has similar bettingoptions, what would cause the customer to frequent one shop overanother?   While some online gaming organisations seek to an image ofglamour and escape to paradise after a long day at work, this type ofpositioning is more effective for the casino venturing into onlinegaming than the traditional betting shop down the street (Thomas2004).   Re-branding a company as old and established as William Hillwould be difficult, expensive, and unlikely to be effective.   Nor is it possible for any one gaming establishment to differential itsproduct on price in the long-term.   The EPOS system will produce costsavin gs compared to the former manual bet-taking and managementinformation systems (WH Annual Report 2004).   This cost savings occursfrom reduction in staff needed to operate a betting shop, more rapidprocessing of bets, and standardisation of bet settlement by removingthe local human component.   The EPOS system also replaces manual inputinto management information systems, allowing increased communicationbetween shops and the corporate offices, and increasing the companysability to respond to betting fluctuations (William Hill PLC 2004).  The firm did incur additional capital investment expense during 2004due to the purchase of the EPOS system, but the Annual Report indicatesthis is a negligible amount and will be easily amortised. Cost benefits, resulting in increased profits and more competitiveprice structures, in combination with lack of product differentiationin the gaming sector, can be expected to result in increased marketshare for William Hill.   This increase should occur across all four ofits gaming platforms, although primarily in Internet, mobile andtelevision sales, as lack of differentiation causes sector-wideconsolidation and the elimination or absorption of smaller firms byindustry leaders (Thomas 2004).   Some market advantage certainly goes to the organisations with the most(and most convenient) locations.   William Hill CEO David Hardingstresses the importance of place in the firms differentiation efforts,contending branding and convenience are the most important factors ingaming choice.   â€Å"People always underestimate the guiding principle ofbetting, and thats to make it convenient,† he states, â€Å"branding willalways remain dominant, and as long as you make it easy to gamble,people will do so† (Hargrave 2004, P20).   Along this line of thinking,over time the sector power of larger organisations with theirestablished shop sites will cause market consolidation, squeezing outsmaller firms (Thomas 2004).   This then further enhances theconvenience of the shops of large-sector players.   Organisations thatcan integrate their various services, as described above in theinteraction between internet gamblers, William Hill  rquote s voucher system, and EPOS machines in the local retail shops, also have an advantage in the convenience department.   However, loss of personal touch is something William Hill should beseriously considering.   Atomisation historically causes loss of jobs,and â€Å"William Hill employs more than 10,000 people:   8,500 in shops,1,000 in call centres, and 1,000 in support† (Smethurst 2004, 36).  People, particularly retail staff, play a major role in product andorganisation differentiation within a service-based firm such asWilliam Hill.   This is particularly relevant as the company pridesitself for its rigorous hiring practices and top-notch staff.   WilliamHill undertook a complicated pre-hiring screening process to help thecompany ensure i t was bringing in workers with the best possible jobfit (Smethurst 2004).   For example, the human resources department atWilliam Hill â€Å"identified the motivational factors that make someonegood at a job,† then formulated a profile of the ideal front-line staffperson (Smethurst 2004, 36).   This profile was used to c reate anautomated telephone screening process that was used with all initialapplicants to the retail shops.   The company then sends potentialrecruits through interviews and role-play exercises before making a joboffer (Smethurst 2004).   All these evaluate the attitude as well as theskills of potential employees.   Smethurst quotes Russell as saying,â€Å"you can add skills to people, but if they had the wrong attitude inthe first place then its not going to work† (2004, 36).   HopefullyWilliam Hill management has considered the possible impact on staff andtheir attitudes in their implementation of EPOS machines.Human Resources Consultant Richard Samson of the EraNova Instituterecently presented his theory of out-peopling (Frauenheim 2001).   Justas jobs can be off-shored from one country to another, so jobs can beout-peopled, going from work performed by people to work performed bymachines.   While this can offer short-term advantage, Samson arguesthat similar potential losses are likely in the long-term.   â€Å"Most ofthe work tasks done now by people will be done by smart technologywithin twenty to thirty years† (Frauenheim 2001).   Job loss causesanger and resentment amongst those put out of an organisation, andoften-sympathetic bad attitudes with workers who remain.   This shouldbe of particular relevance for a firm so concerned about workerattitude that they developed a complex and expensive screening processto ensure proper attitude amongst new hires.   Remaining employees alsobecome even more key to the generation and maintenance of customerloyalty, as   the fewer employees with whom an individual customerinteracts, the more important the quality of interaction with theemployee becomes (Garavan 1997).Reduction in employees in proportion to machines can also influence thepublics perceptions of the organisation.   William Hill is a companythat promotes service as part of its corporate image.   This serviceinfers a level of caring amongst those at the company for theircustomer (Company Website 2005).   If the customer begins to viewWilliam Hill shops as simply a place lined with electronic kiosks, muchlike the gambling version of the local Laundromat, this image of caringservice is no longer projected.   This can contribute to customerloyalty and repeat purchase over the long-term.   Management must find away to maintain its positive corporate image, therefore, while goingforward with its atomisation and cost-saving plans.Loss of jobs also creates macroeconomic impacts for both the sector andthe country.   This has historically been evidenced across manyse ctors.   In agriculture, for instance, small farms that once requiredan entire family to run have been swallowed up and consolidated withlarge commercial ventures that employ many machines and few people(Gottheil 1999).   Economic impacts of rapid changes in job availabilityand employment can destabilise an entire economy.   If unemploymentsoars and discretionary income plummets, William Hill and other gamingorganisations will likely see a sharp drop in profits, as they are adiscretionary spend for most consumers (Gottheil 1999).  Ã‚  Ã‚   More machines also lead to the increased likelihood of gamblingabuse.   The University of Sydney, Australia, undertook a significantstudy of the effect of gambling machines, ATM machines, and EPOSsystems on gambling abuse and addiction (Blaszczynski, Sharpe andWalker 2001).   They found customers were more likely to abuse gamblingor display addictive behaviour when gaming places were primarilymachine-serviced.   The more people invol ved in gaming transactions, theless likely addictive behaviour was evidenced, unless such behaviourwas encouraged by the staff involved (Blaszczynski, Sharpe and Walker2001).   They additionally found limiting the combination of machines,such as removing ATM machines from shops where EPOS and similar wereavailable reduced addictive behaviours.Also, while gambling addicts are often profitable in the short-term togaming establishments, too many people suffering from this malady hastraditionally led to public outcry, tightening of gaming regulation,and increased taxes on winnings (Blaszczynski, Sharpe and Walker2001).   It is in the best interests of all involved, therefore, forgaming organisations to strive to increase customers gambling spendingwithout crossing the line into gambling addiction.   The University ofSydney study showed that slowing the timing on machines, for example,reduced the likelihood of display of addictive behaviour Blaszczynski,Sharpe and Walker 2001.   Research and findings such as this should bestrongly evaluated by William Hill management to ensure the optimum useof gaming machines in its shops.Still, not withstanding possible detractions to the organisation, theEPOS system offers many potential benefits to the William Hill firm.  Electronic point of sale technology will enable the bookmaker to take,settle and pay bets electronically, record information from suchtransactions in a central software system, display and distributetargeted betting opportunities and manage estate-wide risk (WilliamHill PLC 2004).   Of these benefits, the two most intriguing from acorporate standpoint are the ability to gather data and profilecustomers, and the resulting use of such data in creating targeted andevent-specific marketing.The EPOS system also allows for extensive capture of customerinformation.   Data generated from customer input can include the numberand frequency of bets, the type of events bet upon, the average amountof each bet , and much more.   This allows the firms management tocreate customer profiles, representing current and target consumergroups.   (Woodruff and Gardial 1996).   For example, a middle-agedcustomer bets on dog races every other Friday.   He typically bets onthe favourites, in the total spend range of pounds forty to sixty, witha typical mix of eight to twelve bets of three to five pounds each.  Since he frequents William Hill, the company can assume some level ofretail brand or local shop loyalty.   The firm would like to see thecustomer bet more often, and in greater amount.   Because they havecollected this data on the customer through the EPOS system, they cansend him direct, targeted advertisements for dog races, and bettingwithin his favoured range.  Ã‚   If they can entice him to place a betoutside his pattern, they have potentially increased his regular spendin addition to this one betting event (Smethurst 2004).   Data gathered from the EPOS system can also b e used to create customerprofiles, which can then be targeted for marketing and event-specificadvertising.   William Hill noticed from similar data gathered on itswebsite that many were registering but not betting.   They hired aprivate firm to assist them in converting this web traffic into betting(Lee 2004).   The firm divided website registrants into four randomgroups.   One group was sent nothing, one was sent a service-led followup email, one was sent an offer-let follow up email, and one received areminder email that they had yet to place a bet.   The company was ableto demonstrate that service- and offer-led email follow up increasedthe number of registrants who became bettors by more than five percent(Lee 2004).   If an experiment such as this can have such positiveresults with random groups, imagine the impact of targeted emails andadvertising on William Hills customer base.Another benefit to the company is that electronic point-of-saletechnology will increase t he efficiency of William Hills bettingoperations.   Prior to the EPOS system, all bets were placed andrecorded manually in betting shops.   In an oversimplified explanationof the manual process, a customer would place a bet by giving a writtenticket to a retail shop staff member, who would give them a receipt inreturn.   The customers bet would be recorded in the shop, and if theywere entitled to winnings, these would be settled by the shop manageror designated staff person.   The organisation had various managementinformation systems into which data from individual shops was recorded,and this was forwarded to the central offices on a regular basis(Caldecote 2004).   Issues for management with the manual system included both the accuracyand detail of reporting.   For example, under scrutiny regarding theannual amount of unclaimed returns at William Hill, David Hood claimedthe company was unable to quantify annual unclaimed returns because thepre-EPOS reporting system did not record or allow for such (Caldecote2004).   This type of information is vital to managements analysis ofthe overall health of the organisation, in addition to profit and losscalculations.   The detail of information provided by the EPOS systemwill easily rectify these reporting difficulties.   The electronicsystem will also save time, allowing data from each shop to be capturedalmost instantly (William Hill PLC 2004).   This enables the company tocalculate statistics and perform analysis on events as they occur, forexample.   In a time-sensitive business such as gambling, this can be ofgreat advantage.Another benefit is that the EPOS system potentially allows William Hillto expand business hours at reduced cost.   As it reduces the need forstaff, betting shops can remain open longer for the same staff costs.  Longer hours give customers more opportunity to bet, increasing thelikelihood of more customers betting because of the enhancement inconvenience, and increas ing the amount customers are likely to bet, asthey are in the betting shop for a longer period of time.   Morecustomers and more spend mean more profit, and potentially more marketshare, all of which are naturally favourable to management (Woodruffand Gardial 1996).     Ã‚  Ã‚   Increased efficiency typically leads to increased competitiveness,provided the firm is being efficient about the right activities.  William Hill was a bit behind its competitors, being the last major UKbookmaker to implement an EPOS system.   It faces one primary competitorin the broader sector, Ladbrokes, and a slew of smaller competitors,primarily in the online market (Thomas 2004).   While many of thesesmaller competitors are striving for differentiation along a variety oflines, William Hill holds to its position that its company branding andstatus will carry it through against such firms.   It has the advantageover Ladbrokes of being in the online gambling arena longer, and hasstepped ahead of them in its entry into television.   Ladbrokes has alarger number of traditional shops, however, which must be factored ingiven William Hills emphasis on the importance of convenience andplace in its loyalty strategies (Thomas 2004, Hargrave 2004).   Ladbrokes also has employed EPOS for a longer time, and has thereforeincreased the integration of the machines and the data they generateinto its overall business and marketing strategies (Hargrave 2004).  The two have similar brand recognition, and are viewed as primecompetitors.   Given Ladbrokes already uses an EPOS system, it is morelikely that increased market share for William Hill will come from theelimination or absorption of smaller competitors, rather thansignificant customer win from Ladbrokes.  Ã‚   Findings of the analysis of available literature concerning WilliamHill, EPOS systems, and potential benefits and losses are generallyfavourable for the EPOS system.   The potential drawbacks of the EPOSsystem include lessened customer loyalty and damage to the corporateimage of a service-oriented firm.   Staff attitude and feeling of valuealso have the potential to suffer from automation.   The system fits inbroad corporate culture of a firm innovative in its use of technology,but may have a negative impact on employees and could potentiallychange local shop culture.   This is particularly important if jobs willbe lost or phased out due to the introduction of the EPOS machines,although the company has not indicated this will be the case.   Theorganisation must finally be cognisant during both implementation andcontinued operation of the potential for gambling abuse and addictionusing EPOS and other automated gambling devices, and make an effort toprovide   a safe, contro lled betting environment.The anticipated benefits of the system, however, outweigh potentialdrawbacks.   First, the EPOS system will increase efficiency in how betsare taken, settled, and paid, both increasing security in bettingtransactions and making each transaction faster and less expensive.  This provides the firm with the potential to forward such savings tothe consumer, increasing the companys ability to meet or beatcompetitors on price issues.   Whether or not any cost savings are passed along to the consumer, thesystem also makes William Hill more competitive in a number of otherways.   In combination with the voucher system already in place, theEPOS system greatly increases the convenience afforded to the customerin placing and settling bets, and withdrawing winnings.   This increasedconvenience is anticipated to result in new customers, particularlythose drawn from other

The Monetary And Fiscal Policy Of Iceland

The Monetary And Fiscal Policy Of Iceland The country of Iceland is the smallest economy within the Organization for Economic Cooperation and Development (OECD) with a gross domestic product (GDP) in 2007 of about $11.8billion. The Icelandic economy has been based on marine and energy resources. More recently, Iceland has developed a very strong services sector, which accounts for two-thirds of the economic output. Since the start of the decade i.e. from 2000, Iceland has experienced particularly strong growth in its financial services sector. Trade accounts for a large share of Icelands GDP, with imports accounting for 46% in value and exports accounting for 35% in value of goods and services of GDP. Icelands main export item was fish and other marine products until the year 2006, when Iceland began to capitalize on its abundant thermal energy resources to produce and export aluminum. A combination of economic factors over the early to mid-2000s led to Icelands current economic and banking distress. In particular, access to easy credit, a boom in domestic construction that fueled rapid economic growth and a broad deregulation of Icelands financial sector spurred the banks to expand rapidly abroad and eventually played a role in the eventual financial collapse. Iceland benefited from favorable global financial conditions that reduced the cost of credit and a sweeping liberalization of its domestic financial sector that spurred rapid growth and encouraged Icelands banks to spread quickly throughout Europe. The 2008-2009 Icelandic financial crisis was a major ongoing economic crisis in Iceland that involved the collapse of all three of the countrys major banks (Kaupthing, Landsbanki, Glitnir) following their difficulties in refinancing their short-term debt and a run on deposits in the United Kingdom. Relative to the size of its economy, Icelands banking collapse was the largest suffered by any country in economic history of the world. This was the main reason why Iceland had to suffer so much in the crisis. Commenting on the need for emergency measures, Prime Minister Geir Haarde said on 6 October 2008, There [was] a very real danger that the Icelandic economy, in the worst case, could be sucked with the banks into the whirlpool and the result could have been national bankruptcy. He also stated that the actions taken by the government had ensured that the Icelandic state would not actually go bankrupt. At the end of the second quarter 2008, Icelands external debt was 9.553 trillion Icelandic krà ³nur (à ¢Ã¢â‚¬Å¡Ã‚ ¬50 billion), more than 80% of which was held by the banking sector. This value compares with Icelands 2007 gross domestic product of 1.293 trillion krà ³nur (à ¢Ã¢â‚¬Å¡Ã‚ ¬8.5 billion). The assets of the three banks taken under the control of the FME totaled 14.437 trillion krà ³nur at the end of the second quarter 2008. MONETARY POLICY Monetary policy is the process a the government, central bank, or monetary authority of a country uses to control (i) the supply of money, (ii) availability of money, and (iii) cost of money or rate of interest to attain a set of objectives oriented towards the growth and stability of the economy. Monetary theory therefore provides insight into how to craft optimal monetary policy. Monetary policy is contrasted with fiscal policy, which refers to government borrowing, spending and taxation. During the financial crisis, Icelands monetary policy credibility had been very seriously damaged. Unsatisfactory inflation outcomes had already undermined the credibility of the monetary framework, even before the financial crisis started and, consequently, inflation expectations were poorly anchored. Icelandic economists had said that due to the huge impact of the crisis, rebuilding the credibility was likely to take time, and also maintaining it might be very difficult. However, after the crisis, the Monetary Policy Committee (MPC) had voted to lower the Central Bank interest rates by 0.5 %. By supporting the interest rate cut, it lead to the appreciation of the krona in trade weighted terms. As in the ISLM Model, a decrease in the interest rates leads to an increase in the money supply. Therefore, this has lead to an expansionary monetary policy, as the interest rates were lowered, and also the MPC supported or voted for lower interest rates. MONETARY POLICY GRAPH The above graph shows the shift in the LM towards right, which has lead to an expansion in the LM curve. Since the MPC voted for a lower interest rates , the money supply was increased. Therefore, the LM curve shifts from LM1 to LM2, leading to an expansionary of the monetary policy. FISCAL POLICY In economics, fiscal policy can be defined as the use of government expenditure and revenue collection to influence the economy. Fiscal policy refers to the overall effect of the budget outcome on economic activity. There are three possible stances of fiscal policy: Neutral stance, which implies a balanced budget where, govt. spending = Tax Revenue Expansionary stance, increase in the govt. spending and reduction in tax revenue Contractionary stance, decrease in the govt. spending and increase in tax revenue During the financial crisis, there was an increased government debt. Due to the recession and rising debt servicing costs, the public deficit was projected to be above 10% of GDP in 2009, adding to the public debt burden. As a result, a considerable fiscal consolidation was therefore needed to put public finances back on a sustainable path and to pave the road for a successful euro-area entry. It was also important to reduce the deficit vigorously in the coming years, so that the country can reach the goal of balance. In order to eliminate the deficit, the government of Iceland had the option of tax increases as well as spending cuts, it then decided to opt for the former as they were easier to introduce immediately. The starting point for the tax increases would have been to reverse tax cuts implemented over the boom years, but Iceland could no longer afford. This would involve the increase in the personal income tax and also lift the reduced rate of VAT (Value Added Tax). This planned fiscal consolidation, would involve measures which would help to contain the expenditures. FISCAL POLICY GRAPH The above graph, shows the shift in the IS curve towards left, which leads to the contraction of the IS curve. Since the govt. decided to reduce their expenditure and increase the taxation, in order to consolidate the fiscal policy, the IS has moved towards left, leading to an contractionary fiscal policy. INFLATION In economics, inflation can be defined as the rise in the general level of prices of goods and services in an economy over a period of time. When the price level rises, then each unit of currency buys fewer goods and services; consequently, annual inflation is also erosion in the purchasing power of money a loss of real value in the internal medium of exchange and unit of account in the economy. The effects of inflation on an economy are manifold and can have both simultaneously positive and negative impacts. Since Iceland, comes from a small domestic market, the banks in Iceland have financed their expansion from getting loans on the inter-bank lending market and, more recently, by getting deposits from outside Iceland (which are also a form of external debt). Large amount of debt was also taken by the households, which was equivalent to 213% of the disposable income, causing inflation in the country. Due to the practice of the Central Bank of Iceland issuing loans (liquidity)to the different banks on the basis of uncovered bonds which are newly issued and printing money on demand, this lead to inflation being exacerbated. Due to the financial crisis, the country of Iceland suffered inflation. On 25th of March 2008, popular website, Bloomberg.com that Iceland had raised its rates to 15% by raising its repo rate by a huge 1.25% in one day. The website also reported that the country was facing an inflation rate of about 7%. However, the Central Bank of Iceland had a goal of maintaining the inflation rate of about 2.5%. Also the Icelandic currency, krona has declined against the euro, from about 100 ISK per euro at the beginning of the year (2008), to its nadir of 125 on March 19 2008. Due to the interest rate hike it had the effect of moving it to about 116 from about 122. In August 2006, the country of Iceland made news when it had increased its interest rate to 13.5%. At that time, the krona was very strong against the euro. Iceland made news previously in August, 2006 when it increased its interest rate to 13.5%. The krona was then trading at a stronger at 90 to one euro. Some main factors why Iceland incurred inflation was mainly due to, the value of krona depreciated, secondly the prices of various commodities kept on soaring, and lastly, there was uncertain effect on wage agreements on labour costs. Since the financial crisis brought a huge change in the development of the economies in the world, as well as making many banks go bankrupt, the Icelandic debt is now over 320 billion krona, which is roughly about $4 billion US dollars. This figure is huge; as one can say considering that its about a quarter of their GDP. INFLATION GRAPH Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2010 6.60 7.30 8.50 2009 18.60 17.58 15.19 11.89 11.63 12.18 11.32 10.90 10.81 9.71 8.63 7.50 2008 5.77 6.79 8.72 11.76 12.32 12.74 13.55 14.54 14.02 15.89 17.15 18.13 2007 6.89 7.41 5.87 5.29 4.67 4.01 3.76 3.45 4.18 4.47 5.19 5.86 The above graph shows Icelandic inflation rate over the past 3 years. In the graph, one can make out how the inflation rate climbed up consistently in the year 2008, whereas in the year 2009, the inflation rates kept on falling except in the month of June where it increased, but since then it had kept on decreasing. In the year 2008, the reason why inflation rate climbed up consistently, was because of the krona which had been depreciating, where as in the year 2009, the inflation rates kept on falling as the property prices fell, which resulted in the fall of prices. UNEMPLOYMENT Unemployment can be defined as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Also, people who were temporarily laid off and are waiting to be called back to that job are counted as unemployed. Some types of unemployment are listed below: Structural Unemployment. Frictional Unemployment. Cyclical Unemployment. Since the financial crisis, lead to large percentage of unemployment all over the world, Iceland was also one of them which had a quite high rate of unemployment. Unemployment in Iceland increased tree times more by the end of November 2008. There were more than 7000 registered jobseekers (about 4% of the workforce) in November compared to just 2136 at the end of August 2008. The debt repayment had become more costly as household debt (80%) and 13% denominated in foreign currencies had become indexed. The impact of the crisis was such that since October 2008, 14% of the total workforce had experienced reductions in pay, whereas around 7% of the workforce had their working hours reduced. According to IFL (Icelandic Federation of Labour) president Gylfi Arnbjà ¶rnsson, the above figures were lower than expected More than 85% of the workforce who were currently registered as unemployed in the country, stated that they had become unemployed or lost their jobs in October after that, due to the economic collapse. In December 2008, the unemployed figures which were registered in Iceland was 4.8 per cent, or around 7,902 people an increase of some 45 percent in November, according to the figures from the Directorate of Labour. These unemployment figures were the highest, Iceland had recorded since January 1997. In the same month i.e. December in the year 2007, unemployment rate partly was 0.8 percent, or 1.357 people. The Directorate of Labour had estimated that the figure will rise to 6.4-6.9 percent by the end of January 2009. Among those unemployed, the rate of unemployment among young people had increased the fastest, with the number of registered 16 to 24 year olds jumping from 1,408 to 2,069 in the month to the end of December 2008. This age group accounts for 23 percent of the entire jobless total. UNEMPLOYMENT GRAPHS GROSS DOMESTIC PRODUCT The Gross Domestic Product (GDP) is defined in economics as a basic measure of a countrys overall economic output. It is the market value of all final goods and services made within the borders of a country in a year. It is often positively correlated with the standard of living, though its use as a stand-in for measuring the standard of living has come under increasing criticism and many countries are actively exploring alternative measures to GDP for that purpose. The Gross Domestic Product (GDP) can be determined in three ways, all of which should in principle give the same result. They are the product (or output) approach, the income approach, and the expenditure approach. Prior to the 2008-2010 crises, the economy of Iceland had achieved high growth, also had a low rate of unemployment, and a remarkably even distribution of income all over the country. The economy depended heavily on the fishing industry which is the main source of their income, which provides 70% of export earnings and employs 10% of the work force. Icelands economy had been diversifying into manufacturing and service industries in the last decade, with new developments in software production, biotechnology, and tourism. During the global financial crisis, the crisis-stricken Icelandic economys GDP shrank by a record 6.5% in 2009, despite having a decent growth of 1% in 2008 and massive growth of 6% in 2007. The decrease in the gross domestic product (GDP) by 6.5% was a record in the national accounts of Iceland. There was a sharp decline in GDP in last year (2009) as the domestic expenditure plunged by 20.1%, then the household consumption also fell to 14.6% due to unemployment and government consumption dwindled by 3%. Also, Icelands fixed capital formation dropped by 49.9%. These were the reasons why the gross domestic product (GDP) fell by a huge margin, in the year 2009. After the crisis, the Gross Domestic Product (GDP) in Iceland managed to expand at an annual rate of 3.30 percent in the last quarter i.e. in the year 2009. Iceland Gross Domestic Product is now worth 17 billion dollars or 0.03% of the world economy, according to the World Bank. Icelands Scandinavian-type social-market economy combines a capitalist structure and free-market principles with an extensive welfare system, including generous housing subsidies. GROSS DOMESTIC PRODUCT (GDP) GRAPH Year Mar Jun Sep Dec Average 2009 -5.10 -0.40 -7.20 3.30 -2.35 2008 2.90 -6.00 1.80 3.20 0.48 2007 2.10 0.80 5.10 -1.00 1.75 The above graph, describes the changes in the gross domestic product (GDP) of Iceland over the past 3 years. During the years 2007 2008, Iceland recorded a growth in the GDP, which helped in boosting the Icelandic economy. However, most of the year in 2009, it recorded a huge decline of 6.5%, except in the last quarter i.e. in the month of December where it a recorded a positive GDP. The main reasons why the GDP declined in the year 2009 was because the household consumption, the government consumption, as well the domestic expenditure rate had fallen massively, resulting in a negative GDP for the most part of the year. CURRENCY In economics, the term currency can refer either to a particular currency, which comprises the physical aspects of a nations money supply. The other part of a nations money supply consists of money deposited in banks (sometimes called deposit money), ownership of which can be transferred by means of cheques or other forms of money transfer such as credit and debit cards Due to the effects of the financial crisis, there was In October 2008, the effects of the 2007/08 global financial crisis brought about a collapse of the Icelandic banking sector. The value of the Icelandic krà ³na plummeted, and on 7 October 2008 the Icelandic Central Bank attempted to peg the it at 131 against the euro.[4] This peg was abandoned the next day.[5] The krà ³na later fell to 340 against the euro before trade in the currency was suspended[6] (by comparison, the rate at the start of 2008 was about 90 krà ³nur to the euro[7]). After a period of tentative, very low-volume international trading in the krà ³na, activity had been expected to pick up again throughout November 2008, albeit still with low liquidity, as Iceland secured an IMF loan.[8] However as of January 2009 the krona was still not being traded regularly, with the ECB reference rate being set only intermittently, the last time on December 3, 2008 at 290 ISK per euro.[9] The Icelandic krona similarly fell in value against the US dollar, from ca. 50 to 80 per dollar to about 110-115 per dollar; by mid-November 2008 it had continued its slide to ca. 135 to the dollar. As of April 2, 2009, the value hovered around 119 per US dollar.[10] Previously high costs for foreign tourists thereby dropped, which Icelands tourism industry hopes to exploit.[11] INTERNATIONAL TRADE The economy of Iceland is small and subject to high volatility. Iceland has a mixed economy with high levels of free trade and government intervention. Iceland has a free market economy with relatively low taxes compared with other OECD countries. However, government consumption is less than in other Nordic countries. Icelands trade policy is pursued along three main tracks: multilateral trade liberalisation through the WTO, regional liberalisation through the European Economic Area (EEA) with its EFTA/EEA partners and the European Union and finally, bilateral free trade agreements in cooperation with its EFTA partners Norway, Liechtenstein and Switzerland. Icelands international treaties have strengthened foreign trade. The EEA Agreement covers the free movement of goods, persons, capital and services. Membership in the EEA in 1994 and the Uruguay Round agreement brought greater market access for Icelands exports, capital, labor, and goods and services, especially seafood products. Agriculture is heavily subsidized and protected by the government, with some tariffs ranging as high as 700 percent. Iceland is a part of the World Trade Organisation (WTO). The WTO was established on the 1st of January 1995. It is an organization designed to supervise and liberalize international trade. Since the early 1990s, Iceland and its other partners in the European Free Trade Association (EFTA) Liechtenstein, Norway and Switzerland have established an extensive network of contractual free trade relations in Central and Eastern Europe, the Mediterranean region and with countries in other parts of the world. The WTO deals with controlling of trade between participating countries; it provides a framework for negotiating trade agreements. The country has signed a large number of multilateral and bilateral agreements. Iceland is furthermore strongly committed to the Doha Development Agenda and a fair and equitable outcome that will benefit the entire membership. Iceland support s the Doha Development Agenda Global Trust Fund, which is intended to assist developing countries in taking advantage of the opportunities created by increased trade liberalization. Iceland exports 40% of fish and fish products, 40% of aluminum and alloys and animal products. The main imports are machinery and equipment, petroleum products, foodstuffs and textiles and Cement. Icelands primary import partner is Germany, with 12.6%, followed by the United States, Norway, and Denmark. Currently, the largest trading partner countries are Germany, the UK, the Netherlands and the Nordic countries. The fishing industry is one of the most important industries. It provides 70% of export income and employs 6.0% of the workforce; therefore, the state of the economy remains sensitive to world prices for fish products.  [i]  The diversity of Icelands exports has, however, increased significantly in recent years, due to structural reforms and privatisation of state owned entities in finance a nd other sectors. Exports of manufactured products have been growing rapidly. Services now account for 36% of total export revenues while in 1990 the share was 26%. Icelands ratio of services to total trade is one of the highest among OECD countries. It is the Governments stated objective to provide Icelandic agriculture with a realistic opportunity to adapt to changes in its operating environment, to the benefit of farmers and consumers alike. The growth of international trade had been affected in the 1930s by the existence of tariffs and other barriers to international trade. To avoid such problems an agreement, the general Agreement of Trade and Tariffs, was concluded between 44 countries which included Iceland. Iceland joined GATT in 1968. GATT stated that an international agreement should be created which required a binding code of conduct for international trade; its main objective was the liberalization of world trade. Its principle was that there would be mutual benefits if international trade took place on the basis of non-discrimination and should be gradually reduced through negotiations. The liberalization for international trade gave Iceland confidence in their trade. During the period 2003-07, Iceland developed from a nation best known for its fishing industry into a country providing sophisticated financial services, but was consequently hit particularly hard by the 2008 global financial crisis, which extended into 2009.  [ii]   Self-protection and self-preservation have characterized Icelands foreign trade policy since its independence from Denmark. While Iceland is a highly developed country, until the 20th century, it was among the poorest countries in Western Europe. However, strong economic growth has led Iceland to be ranked first in the United Nations Human Development Index report for 2007/2008.  [iii]   TARIFF Iceland enjoys some of the strongest economic freedoms among all countries However; Iceland is very isolationist as regards to the import of farm products and licenses as well as state monopolies of imports (undergoing a dismantling). Some plant products such as potatoes and flowers are subject to seasonal limitations. Iceland implements high tariffs on agricultural products in order to protect the domestic agricultural sector. Tariffs on certain varieties of vegetables, e.g. tomatoes, cucumbers and bell peppers are significantly higher during the growing season to protect domestic greenhouse producers. Meat and dairy products, and potatoes are also protected by substantial duties. Animal feed can carry tariffs up to 55%. Over 90% of imports are not subject to import restrictions or duties other than the same value-added tax applied to domestically produced goods. Special excise taxes are levied on sugar and some sugar products, potatoes, and motor vehicles. Agricultural products remain the most heavily taxed. In March 1970, Iceland acquired full membership in EFTA. On 28 February 1973, Iceland ratified a trade agreement with the European Community (later named the European Union) leading to the elimination of tariffs on industrial goods. A law authorizing the establishment of free trade zones went into effect in 1992. Icelands trade regime underwent considerable liberalization in the 1990s with accession to the European Economic Area (EEA) in 1993, and the Uruguay Round in 1994. Current duty rates generally range from 0% to 30% ad valorem and the average weighted tariff is 3.6%. Some goods enter duty-free, such as meat, fish, and dairy products. Icelands average MFN applied tariff is 5.9%. A high percentage of tariff lines (70%) benefit from duty free treatment. The average MFN applied tariff rate for agricultural products is 18.3% (WTO definition) compared with 2.5% for other goods.  [iv]   Iceland offers preferential tariffs on imports from 37 WTO Members under several free-trade agreements. Regional liberalization has advanced the most within the framework of the European Economic Area (EEA); nonetheless, the average tariff on products from EEA partners is still 3.2%, reflecting the exclusion of several agricultural products from duty-free treatment. A new Customs Law came into force on 1 January 2006 (Act No. 88/2005). According to the authorities, customs clearance for all importation aspects is computerized; electronic data interchange (EDI) covers 98% of the declarations of import and export firms. Customs clearance using EDI takes a matter of minutes, or a few hours if processed manually.

Billy Budd Essay -- essays research papers

BILLY BUDD   Ã‚  Ã‚  Ã‚  Ã‚  There are many ways you can argue if the novel Billy Budd was a good novel or a bad one. You can determine this by looking at such things as plot, character, and the use of language. The book is about a sailor that has been impressed (the act of forcibly taking sailors and making them serve in the navy) by the British navy. It is set in the late 1700’s during the French Revolution which overthrew the anarchy, addressed peoples concerns, and it was mainly a focus on human rights. The Revolution also influenced the way sailors thought because of the mutinies at Spit head and Nor. And due to Billy’s notable qualities he became the handsome sailor(the natural leader of the crew). Also since the British Navy needed so many people to fight with them they picked up many people making their ships crew multi cultural. But Billy went onto the ship not only to find out that his life will come to an abrupt stop. The novel appealed in many ways with both likes an d dislikes.   Ã‚  Ã‚  Ã‚  Ã‚  The novel was fairly good due to its plot layout. The early setting in the late 1700’s, and the whole sailor aspect was good. the things that make the novel interesting is that its on a boat in the old age and if someone gets injured or something similar to that the healing process will not be as good. just knowing that can make you look at the book a whole new way because you look more for violence sometimes than peoples discussing something. The...

Hamlets Childish Behaviour and Contempt of Others :: essays research papers

Hamlet identifies with an adolescent of the 1990’s more than he does with the youth of his own time. Hamlet is immature, sarcastic, depressed and takes action during the heat of passion which is very much like the behavior of the youth in the 1990’s. Love, control over action, and the ability to overcome depression are just a few ways to prove maturity. It is obvious Hamlet loves Ophelia in his own way â€Å". . . the celestial and my soul’s idol, the most beautified Ophelia . . .† (Hamlet. II, ii, 109- 110), but his way is not mature enough to include trust toward his lover. The trust that Hamlet should have given her was the key of his madness. This madness that Hamlet cannot trust his love with is the same madness that he loses total control over because of his immaturity, it then causes him to do things, such as kill Polonius, that a person that was mature could stop. The madness that Hamlet assumes is understandable but he can never get over the actual death of his father by still wearing black a year later, and the hasty marriage of his mother to Claudius. Compared to Horatio who is calm and cool throughout the play, and Fortinbras who collected an army to fight for his uncle’s land and honor, Hamletâ⠂¬â„¢s maturity level for his time is low, especially for being a prince. Today Hamlet’s age group is more immature than during his own time so he relates to the youth of the 1990’s better than he does with the adolescents of his own time. Sarcasm, and blunt rudeness is often used by Hamlet in order to offend people that, during his time, he should not have offended. Hamlet often used the hasty marriage of his mother to offend Claudius. The first time that Hamlet offends Claudius in the company of another person is when Claudius is supposed to be helping cheer Hamlet up. â€Å"A little more than kin, and less than kind.† (Hamlet. I, ii, 65) is just as rude during Hamlet’s time as almost anything that a person could say today, it just takes a little thinking for the people of today to get what Hamlet means. The second person that Hamlet is openly rude to is Polonius. Hamlet, in front of Claudius and Gertrude, insults Polonius by calling him â€Å". . . a fishmonger.† (Hamlet.

How Mortal Life Heightens the Appreciation of Life in Eliot and Maddy :: Eliot Wasteland Maddy Essays

How Mortal Life Heightens the Appreciation of Life in Eliot and Maddy Mortal loss and the appreciation for life are very important concepts in writing. Both T.S. Eliot and Yulisa Amadu Maddy use this concept very heavily in their writing styles. T. S. Eliot’s major theme in The Waste Land surrounds death and World War One. The title The Waste Land, gives the reader a feeling of being lost in a world of waste and hopeless causes. The first part of the poem, The Waste Land, is titled, "The Burial of the Dead." This negative title gives the reader a sense of gloom and death. The title is very indicative of what is to come later on in the poem. The novel, No Past No Present No Future, by Yulisa Amadu Maddy is very dark and its title gives the audience a sense of hopelessness and no sense of direction. The reader feels that if he or she is not in the past, present, or future, then where is he or she in the circle of life? The beginnings of both pieces of literature give the reader a feeling of being lost and being depressed. Both works, The Waste Lan d and No Past No Present No Future, deal with death and mortal loss, and both authors, Eliot and Maddy use death to show the audience how important life is. In the first couple of lines in The Waste Land Eliot says, "April is the cruellest month, breeding/ Lilacs out of the dead land," (lines 1-2). Breeding Lilacs gives a sense of hope for life, but at the same time, attached to April and its dead land, we are returned to the aspect of death. T.S. Eliot later in the poem states he "will show you fear in a handful of dust," which is a sign of human mortality, and Eliot describes in his poem the appreciation for life because of the threat of mortal loss. Eliot talks about how "the dead tree gives no shelter"(l.23). Without life we have no shelter and no water or the necessities in nature. The examples of the dead and their inadequacy of shelter and water, gives the readers an understanding of what is needed to live. A living being must have shelter and water, and an example without it heightens the appreciation of life. Eliot goes on to talk about the brown fog of London and how all of the people are hanging their heads looking at their fe et.

Safety from the Inside Out: Rethinking Traditional Approaches

â€Å"Safety from the Inside Out: Rethinking Traditional Approaches† by Alfie Kohn aims to educate the public regarding the real threat of violence to children. While school shootings and other violent crimes that happen on school grounds gain a lot of media attention, it is far more likely for a child to become the victim of violence off school grounds (Kohn, 2004, 33). Further, children are more likely to suffer from violence at the hands of an adult rather than at the hands of their peers (Kohn, 2004, 33). However, the issue of school violence is analyzed along with the mistaken assumptions of how to respond to school violence. The problem the article tries to address is how to create policy that will be both effective as well as reduce violent acts committed against children while on school grounds. There are several terms that must be defined in order to present a clear picture of the issue. The first is violence which by definition means attempting to or engaging in actions with the goal of inflicting bodily harm or death. This definition is important when discussing violence both in schools and off school grounds. Technical fixes is another definition that directly relates to this article. Technical fixes are technologically advanced pieces of equipment designed to reduce violence and include such things as metal detectors and video cameras. The final term to be defined is zero tolerance. Zero tolerance is the idea that any type of violence or intent to become violent be dealt with swiftly according to a designated set of strict consequences. In response to these definitions, the author of the article assumes that the vast majority of Americans equate violence against students as being violence that happens at school. The author also assumes that Americans believe that technical fixes and zero tolerance policies will solve the problem of violence against students (Kohl, 2004, 34). The orientation of the article strives to make sense of the misguided assumptions that Americans have with regards towards violence against students (Kohn, 2004, 34). It builds upon existing research that proves that teaching anti violence skills to students isn’t enough. The author proposes that students must also be taught how to apply these skills if violence prevention is going to be effective (Kohn, 2004, 35). Further, the author discusses behaviorism and the tendency for humans to preoccupy themselves with behavior rather than looking deeper at the values, reasons and motives behind certain behaviors (Kohn, 2004, 35). Finally, the author argues that when skill based prevention does not work then technical fixes are the answer to the problem (Kohn, 2004, 36). The research the author completed for this article disproves many of these assumptions. Using research as his method, Kohn discovered several discrepancies between what Americans believe and what students actually report about violence. For example, Kohn’s research shows that zero tolerance policies have the opposite of their intended effect. Instead of making students feel safer, zero tolerance policies actually make them feel less safe (Kohn, 2004, 36). Additionally, zero tolerance policies don’t make schools any safer than they were before (Kohn, 2004, 36). As part of his research, Kohn suggests that the threats of zero tolerance policies can be replaced with safe school environment where students are taught to trust and protect one another (Kohn, 2004, 36). Kohn also discovered that teaching students anti violence skills is not as effective as creating schools that are committed to the value of peace so that the physical safety of students is protected (Kohn, 2004, 36). The solution to the article seems to be getting rid of zero tolerance policies that turn children into criminals and replacing them with policies that promote peace and trust among students (Kohn, 2004, 36). According to the author, the consequence of not doing so will ensure that school violence remains a problem. Personally speaking, I think Alfie Kohn has noble goals and ideas to keep children safe at school. However, creating peaceable schools is very difficult because it seems impossible to instill peace values into every single student. The reality is that there will always be a few students who do not care about peace and would rather cause trouble through violence. At the same time, Kohn raises some important questions that I think should be addressed and considered as schools continue to search for a solution to the problem of school violence.