The Effect Of Digital Technology On The Music Industry

The effect of digital technology on the music industry Nowadays, teenagers are living constantly surrounded by technology. Even if the younger generation may not see it, technology has had an impact on different factors. The widespread use of digital technology in the music industry has allowed consumers to reproduce digital versions of copyrighted songs inexpensively, with the help of many software and websites. There has been an increase in digital copying activities and those are most of the time claimed responsible for producers’ loss in revenues. While some people claim that the increase of digital technology has killed the music industry, in fact it has lead to innovation and new ways of consuming and sharing music, such as†¦show more content†¦VEVO is a joint venture of Universal Music Group, Google (which owns YouTube), Sony Music Entertainment and Abu Dhabi Media. The VEVO record is given to the artist who gets the highest number of views in 24 hours. When a music video has a lot of views, artists are guaranteed that their music is going to be displayed on radio and is going to sell a lot. The holder of the record is currently Miley Cyrus with the song Wrecking Ball. Indeed, her music video received 19 millions views in its first 24 hours. The song was released on August 25, 2013 and as of January 2014 â€Å"Wrecking Ball† has sold three million copies in the United States. The song debuted on the Billboard Hot 100 at number 50 but it soon became number one after the release of the controversial music video, which shows the impact of YouTube on the music industry. Furthermore, the American music magazine Billboard added U.S YouTube data to its platform, which means that it is now a factor into the chart’s ranking: it joins digital download track sales and physical singles sales. ITunes created the first legitimate digital music store that competed with piracy. On April 28, 2003, Apple released the iTunes store. The music industry had finally an application to earn money from the sale of digital music, after years of suffering from the power of Napster and piracy. Steve Jobs created a new link between the artist and the customer. Indeed, instead of having to go to a store andShow MoreRelatedShould Public Access For The Internet?1477 Words   |  6 Pagesabout any American teenager what their hobbies are, and chances are many will say, â€Å"listening to music†. Music is more accessible than ever in 2016, thanks to technology, computers, and the constantly growing use of the Internet. Just about every industry has been affected by these elements, and the music industry is no exception. Advances in technologies have had, without a doubt, a massive influence on music. However, whether this influence is good or bad is essentially subjective, as there are bothRead MoreEssay on The History of Music Industry 1611 Words   |  7 PagesIn the past, music has been a costly business, where only people with a lot of money could enter and be successful in th e industry. Changes in the music industry coupled with new computer technology have made it much easier for people without a lot of money to compose, produce, and distribute their creation. In order to get a better understanding of the music industry in comparison to 2014, one has to look at its history. There were many things that happened from the 1980’s onward, and they broughtRead MoreImpact Of Technology On The Music Industry1414 Words   |  6 PagesDevelopments within the music industry are seemingly frequent and numerous due to diversity and the various issues faced. For a sector that consistently adapts to demand, it was logical to decipher a development which not only alters significant factors within the industry, but also a development which endures (and even encourages) smaller advancements. The increase in readily available technology has had a significant effect on the music industry. Unlike other developments, advancing technology is constantRead MoreDiscuss the Impact of Digital Technology on the Production and Distribution of Music.1547 Words   |  7 Pagescenturies past, music has seen leaps and bounds in the enhancement of theory, instruments, and recording arts. The first major leap was the invention of the piano in 1709 by Bartolomeo Cristofori. From that first major step came the introduction of electronic instruments short after the harnessing of electricity which came in the early 19th century. Soon after that came recording and then on to synthesizers and eventually digital recording. As computers were introduced to society, computer music was alsoRead MoreThe History of Sound Recording Essay678 Words   |  3 Pagesmethods used to produce, edit, and record music and sound have changed with the introduction of new sound technology. The compatibility of computer technology with music recording has led to large scale developments in computer-based systems, especially by home users. Modern computer technology in music and audio is fundamentally different in comparison to older magnetic tape recording techniques because it is digital. New computerised digital methods are significantly betterRead MoreBMG entertainment Music Industry SWOT analysis.983 Words   |  4 Pagesand Recommendation if Music Industry Strengths: *First major record label to create websites branded towards different music genres. First major record label to use downloading technology to promote sales of CDs and cassettes. *Merged with AOL--AOL has the largest internet service provider in the industry. *BMG was the largest music club in the world, and arguably the leader of the five major labels. *BMG set up a series of websites dedicated to specific genres of music. These sites linked fansRead MoreMusic and the MP3 Essay1064 Words   |  5 PagesMusic is a form of artistic expression that encompasses almost all aspects of human society. Its uses within our lives range from simple entertainment to complex marketing and persuasion tools because of its ability to define our culture. Music may be seen as harmless and unproblematic, but looking at the structure behind its distribution provides insight to an extremely different realm of copyright laws and intellectual property rights. When one pays for copyrighted music, it is assumed that theRead MoreThe use of computer technology in entertainment1069 Words   |  5 Pagesï » ¿The use of Computer technology in Entertainment. â€Å"The improvements in computer technology over the past decade have made video and audio streaming commonplace, making the computer a sophisticated and powerful entertainment medium† (Haupert, 2012, p.39). The use of computer technology is not limited to business, health, education and manufacturing industries but also widely used in entertainment and arts world. There are so many applications as there are entertainers and artists. People look forwardRead MoreThe Epidemic Of Illegal File Sharing1571 Words   |  7 PagesMusic Industry in America is one of the most powerful music industries in the world and it consists of many record labels, nevertheless, the top three major labels are Universal Music Group, Sony Music Entertainment, and Warner Music Group. Most of music industries earn revenue by creating and selling their goods to music consumers and also music retailers. In the past, major labels or music companies sold their products through sheet music (the handwritte n or printed form of music notation) thenRead MoreHow Technology Has Impacted Our Society1403 Words   |  6 PagesI. Introduction Technology and its constant advancements have integrated itself into every aspect of our world. Music has now become a place for the facilitation of experiences through technology in our society. However, the monetization of music through technology has created a far more difficult experience for the fans of music in all genres. In reference to technology, the term streaming is defined as â€Å"playing continuously as data is sent to a computer over the Internet†, (Webster). The internet

Examining Family Businesss Corporate Governance - Free Essay Example

Sample details Pages: 14 Words: 4081 Downloads: 10 Date added: 2017/06/26 Category Statistics Essay Did you like this example? This dissertation sets out a study of the family businessà ¢Ã¢â€š ¬Ã¢â€ž ¢s corporate governance, addressing the relationship between the owners and the management. Family businesses constitute a wide spectrum of enterprises, from small family owned and managed companies to a large internationally operating family controlled corporations. There are several definitions illustrates the family owned businesses, however the majority agree that Nebauer Lank definition illustrate the family business in a simple way and puts it as à ¢Ã¢â€š ¬Ã…“ A firm can be regarded as a family business if a given family holds the voting control of the firmà ¢Ã¢â€š ¬? (Nebauer Lank, 1998). This dissertation argues that, given the duality of the economic and non-economic goals family firms pursue and the complexity of the stakeholders structure, family firms need governance structure that matches the complexity of their constitutes stakeholders. According to that a better research and empirical understanding as how family firms are governed is needed. In this study the focus will be on assessing the level of understanding of the corporate governance concept overall and the codes provided by the Capital Market Authority (CMA), the Capital Market Authority in Oman focusing on strengthen the family owned business by incentives them to go public. The CMA is just recently in the process to create a corporate governance to help the Family business to be prepared to do so. In this study, the focus will be to create an understating and help to create a better code to help the family business sustain in the future. On the other hand there will be an evaluation of the agency theo ry and how the family owners acceptance of this model. Furthermore a research by McKinsey quarterly shows that 95 per cent fails to succeed the generation due to the lacking of succession planning and roles defining, therefore the dissertation will be evaluating the practice and preparation if any on how the existing owner prepare companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s succession planning rules and codes to handover their responsibilities to their successors. Don’t waste time! Our writers will create an original "Examining Family Businesss Corporate Governance" essay for you Create order In this study the focus will be on the family businesses in Sultanate of Oman, a country in the Arabian Gulf with a fledgling capital market. Oman has made significant efforts to improves the level of corporate governance, particularly in the listed companies and now the capital market would like to expand its corporate governance codes to the family owned businesses to strengthen the chances of the sustainability of its growth. Aims And Objective This dissertation will focus on the unique corporate governance challenges that any family business faces and propose structures and practices that can mitigate these challenges and ensure the viability of the business. The detailed objectives that guide the dissertation process are: To review and analyze relevant theoretical, and other, streams of literature that focus on corporate governance and family business Analyzing the practice of the existing code of corporate governance that applied by the CMA and if it fit to be implemented in the family business companies. Asses the ownership structure and polices in the companies and testing the theory of the ownership and control separation. Asses the long term planning by the company owners and how the successor is been appointed. To assess the significance, reliability, and validity of the results; to discuss the theoretical, empirical, and practical implications of the findings; to assess the limitations The impact of corporate governance in family businesses performance. Scope of the dissertation The present study addresses the governance of family firms, focusing on the nature of various governance mechanisms and how they affect firm performance. Family businesses provide a fruitful research context to study corporate governance due to lack of governance research in the area and the distinctive characteristics of family firms. The family business context, especially, enables the study of how aspects of formal and social control vary according to characteristics of ownership structure. Research Approaches and method The methods to gather the required data will be a qualitative, where the participations will be selected based on their history and age of the company in practice. The research will be analyzing their policies and corporate governance practice. Interviews will be placed with the owners and senior managers of the companies to get all the data required for the findings and results. Structure of the dissertation Chapter 1: Introduction This chapter included the background of the study, the aim, purpose of the study, research questions and limitation of the study and it will present the structural framework of the study. Chapter 2: Literature Review This chapter will review the historical perspective, theories and related studies of corporate governance, family business and related theories to corporate governance. This chapter will include the secondary data which will be used in discussing the findings. Chapter 3: Methodology Chapter describes the methodology and procedures that were used to carry out this study. Furthermore, this chapter will review the population and participants of the study, instruments and data collection procedures. Chapter 4: Results and Findings This chapter will present the data and findings related to the research questions Chapter 5: Data Analysis and Discussion This chapter presents the data analysis and the discussion of the finding. Chapter 6: Conclusion In this chapter, the researcher will present a summary of the study and the findings, conclusion and recommendation. The structural framework of the dissertation is illustrated in Figure 1. Figure Literature Review Introduction A growing number of studies have been done on the family business ownership and management separation or combination in the past few years and what is the linkage between the performance and these two elements. In this chapter we will be presenting the theories and the studies that are related to it and selecting a frame work that will be the base of the evolution of the practice we examine in the family businesses. Family Owned Business Family enterprises or family owned businesses represent the oldest form of businesses in the world. The family owned businesses constitutes more than 70 percent of all business in most of the third world countries and in some developed countries (IFC, 2009). In the IFC research à ¢Ã¢â€š ¬Ã…“Family Businesses Corporate Handbookà ¢Ã¢â€š ¬? shows that family owned businesses are the higher contributor in any country growth in terms of economic development and employment. In Spain, for example, about 75 percent of the businesses are family-owned and contribute to 65 percent of the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s GNP on average. Correspondingly, family businesses contribute to about 60 percent of the cumulative GNP in Latin America (IFC, 2009). in addition to, accordingly to recent researches that 95% percent of employment in the Middle East and especially in the Arabian Gulf Peninsula is in the family owned businesses. There are several definitions that explains the family business corporations, the IFC define it as à ¢Ã¢â€š ¬Ã…“a company where the voting majority is in the hands of the controlling family; including the founder(s) who intend to pass the business on to their descendantsà ¢Ã¢â€š ¬?, in another words is à ¢Ã¢â€š ¬Ã…“A business actively owned and/or managed by more than one member of the same familyà ¢Ã¢â€š ¬Ã…“. There are two systems that control the family businesses; which are the family system, and the management system, the two system overlap due to the dual roles that any family member take, like a family member may be a manger or an employee in the business and here where the conflict arise. The family system is based on emotional, love and care. The family system is based on the relationship in the family and they take most of these values to the business. Where in the business system is the professional values are the edge of the decision. (Managment Resources, 2010) To define a family business need to understand the environment from one to another, here are list of family business definitions that made by researcher past the year that cover the family business from different view but reserving the concept. Table Family business Definitions A company is considered a family business when it has been closely identified with at least two generations of a family and when this link has had a mutual influence on company policy and on the interests and objectives of the family. (Donnelley, [1964] 1988: 428). Controlling ownership rested in the hands of an individual or of the members of a single family. (Barnes Hershon, 1976: 106). Organizations where one or more extended family members influence the direction of the business through the exercise on kinship ties, management roles, or ownership rights. (Tagiuri Davis, [1982] 1996: 199). It is the interaction between the two sets of organization, family and business, that establishes the basic character of the family business and defines its uniqueness. (Davis, 1983: 47). What is usually meant by .family business.is either the occurrence or the anticipation that a younger family member has or will assume control of the business from an elder. (Churchill Hatten, 1987: 52). We define a family business as one that will be passed on for the family.s next generation to manage and control. (Ward, 1987: 252). A business in which the members of a family have legal control over ownership. (Lansberg et al., 1988:2). A family business is defined here as an organization whose major operating decisions and plans for leadership succession are influenced by family members serving in management or on the board. (Handler,1989b: 262). Firms in which one family holds the majority of the shares and controls management. (Donckels FrÃÆ' ¶hlich,1991: 149). A business where a single family owns the majority of stock and has total control. Family members also form part of the management and make the most important decisions concerning the business. (Gallo Sveen, 1991: 181). A business firm may be considered a family business to the extent that its ownership and management are concentrated within a family unit, and to the extent its members strive to achieve, maintain, and/or increase intraorganizational family-based relatedness. (Litz, 1995: 78). A business governed and/or managed on a sustainable, potentially cross-generational, basis to shape and perhaps pursue the formal or implicit vision of the business held by members of the same family or a small number of families. (Sharma et al., 1997: 2). A family enterprise is a proprietorship, partnership, corporation or any form of business association where the voting control is in the hands of a given family. (Neubauer Lank, 1998: 8). Family businesses share some common characteristics, largely due to the interacting and overlapping domains of family, ownership and management (Tagiuri Davis, 1982). Family firms have a complex stakeholder structure that involves family members, top management, and a board of directors. Family members, who are often significant owners, usually play multiple roles in managing and governing the firm (Tagiuri Davis, 1982). This involvement promotes loyalty and also commitment to long-term value creation (Dyer Handler, 1994) and reduces problems that arise from separation of ownership and control, as experienced in large, public corporations (Jensen, 1989). Also, family businesses may enjoy a competitive advantage due, for example, to remaining entrepreneurial in character and having a strong sense of responsibility to society (Neubauer Lank, 1998), fast verbal and nonverbal communication, aided by a shared identity and common language of families (Gersick, Davis, McCollom Hampton Landsberg, 1997), family members. Business expertise gained during early childhood onward (Kets De Vries, 1996), and a strong organizational culture contributing to external adaptation and internal integration (Schein, 1983). However, the familyà ¢Ã¢â€š ¬Ã¢â€ž ¢s involvement in governing the firm may induce a focus on business and non-business goals, possibly leading to inefficiency (Schulze, Lubatkin, Dino Buchholtz, 2001). If the owner family is not regularly informed about the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s affairs, differing visions of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s future may develop between management and the family. The resulting feuds between family factions may distract managementà ¢Ã¢â€š ¬Ã¢â€ž ¢s attention from value-creating activities and so reduce their commitment to strategic decisions. Owner-managers also may act opportunistically by satisfying their own needs at the expense of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance and long-term survival. Entrenched owner-manager s may not share their powers with others, especially not with the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s board. Furthermore the common characters of all family businesses are illustrated in the diagram below. Figure The individual represent the family members who are directly involved in daily bases with the operation, the family symbolizes the whole family where in some family businesses called the family counsel and the management dimension represents the family managers and non-family managers. McKinsey quarterly stated in the report à ¢Ã¢â€š ¬Ã…“keeping the family in businessà ¢Ã¢â€š ¬? that only 5 percent will continue to create shareholders value after the third generation. Moreover; the IFC also mentioned in the family business hand book, while the third generation takes over; 95 percent of all family businesses will not survive the ownership around. These consequences might be a result to the lack of commitment and proper business education of handling the business demands. In addition, the survival of family firms is often challenged by dictatorial rule, resistance to change, lack of professionalism in management capabilities, confusion in family and business roles, rivalry and enlarged human emotions among family members, conflicts between interests of the family and the business, and a low rate of investment in business development (Donnelley, 1964; Gersick et al., 1997; Kets De Vries, 1993). All the definitions are focusing on the shareholders and their power in voting and management and these two points are actually the core strength and weaknesses of any family business. However there are other dimensions that a family business can be measured of its strength and weaknesses like: Culture Ownership and governance Succession planning Family involvement This dissertation will be reflected somehow in the culture dimension due to the strength of the factor here in the Arabian Gulf Countries and Oman. Different researcher came up with different definitions of the family business; however, the definitions imply six themes for clarifying the boundaries of the domain of family business: (1) ownership, (2) management, (3) generational transfer, (4) the familyà ¢Ã¢â€š ¬Ã¢â€ž ¢s intention to continue as a family business, (5) family goals, and (6) interaction between the family and business. These themes are similar to those found in the extant literature. For example, Handler (1989a) categorized family business definitions under four headings: ownership and management, interdependent subsystems, generational transfer, and multiple conditions. The extant literature on family business research has largely neglected the definition of the family itself. By modifying Winter.s, Fitzgerald, Heck, Haynes Danes (1998) definition of the family, the present study defines it as a kinship group of people related by blood or marriage or comparable relationship. This definition allows a multigenerational view of an extended family. Family Business in Oman According to the family firm institute (FFI) the around the 75% of Omanà ¢Ã¢â€š ¬Ã¢â€ž ¢s private companies are family owned, with their firms creating 70% of the country employment. There are 12 top families who are controlling around 75% of the contribution over all in Oman. The family owned business also control 90% of commercial activity according to Tharawat (Fortunes) Magazine. Oman is a part of the GCC Region where in the region is estimated that family businesses worth more than 1 trillion dollar, that is ready to be handled to the next generation. All family owned business share same characteristics as mentioned above, even the strengths and the weakness are similar to some extant in all family businesses. However, the family business can be categorized to two categories: Listed family businesses Non-listed family business The listed family businesses are set to fulfill the listed companies corporate governance code as per the CMA regulation, but the non-listed are not treated that way; whatà ¢Ã¢â€š ¬Ã¢â€ž ¢s so ever the size or the operations are. The CMA in Oman are concentrating nowadays to establish an attractive market and safe to all sizes of family businesses, à ¢Ã¢â€š ¬Ã…“the CMA is concentrating on converting the family closed family business to go public by Initial Public Offering(IPO) offering them a less strict rules and requirements to commence the IPOà ¢Ã¢â€š ¬? as the Head corporate governance Center declared. Furthermore there are different points that might affect the operation of any family businesses such as: family relations affect the assignment of the management family indirectly runs the company à ¢Ã¢â€š ¬Ã…“major family influence/dominanceà ¢Ã¢â€š ¬? of the management (in terms of strategic decisions) à ¢Ã¢â€š ¬Ã…“significant proportionà ¢Ã¢â€š ¬? of the enterprisesà ¢Ã¢â€š ¬Ã¢â€ž ¢ senior management à ¢Ã¢â€š ¬Ã…“most important decisionà ¢Ã¢â€š ¬? made by the family à ¢Ã¢â€š ¬Ã…“family controlà ¢Ã¢â€š ¬? of the management of the enterprise at least 2 generations having had control over the enterprise These points might be strengthen the family business in the initial stages of the operations but there must be some kind of governance or policies on whom can make a decisions and how is not. Corporate Governance Corporate governance is a topic that has been a subject of significant debate since 2001 Enronà ¢Ã¢â€š ¬Ã¢â€ž ¢s and other US companies crashed. Some analyst say lack of corporate governance was the main reason behind the crash (International Swaps and Derivatives Association, 2002). The international Swaps and Derivatives Association highlight that the failure was due to interests that extended certain managers at the expense of the shareholders. While the United Statesà ¢Ã¢â€š ¬Ã¢â€ž ¢ capital market where busy analyzing the reasons behind the crash of Enron and World Com, Sultanate of Oman has also experienced its share of corporate trouble affecting not only large companies such as Rice Mills SAOG and Oman National Investment Company Holding SOAG but also dozens of smaller companies, which have had to turn to the government for assistance (Dry, 2003). The year 2002 was the birth of the new corporate governance standards from the Capital Market Authority (CMA), but it was only c overing the list companies in the Muscat Security Market only. Since then the CMA focused on upgrading this standards and code and refine it to be in a worldwide acceptable standards and to include the best practice for the companies. The standards have been modernized since 2002 on the listed companies and the closed shared ones but nothing was mentioned on the family business side. In 2009 the CMA established the corporate governance center to help the companies implement the codes of corporate governance and to regulate the practice and monitor it, in addition to create a new standards to fit the family businesses practice. Till today the CMA and the Center did not establish a full concept on how they can produce a set of codes to be acceptable to the share holders of these businesses due to the lack of information on the family owned businesses in Oman. Theoretical framework related to Corporate Governance. The corporate governance model did not came from one framework or a certain theories, but I was built up on different practices and theories which results of different frameworks that today any economic system can customized to suit the needs to regulate the market. There are certain theories that been always associated with corporate governance practice which is set out the relation between the principle (shareholder) and the agent (management): The agency theory Stewardship Theory Stakeholder theory The agency Theory Agency theory having its roots in economic theory was exposited by Alchian and Demsetz (1972) and further developed by Jensen and Meckling (1976). Agency theory is defined as à ¢Ã¢â€š ¬Ã…“the relationship between the principals, such as shareholders and agents such as the company executives and managersà ¢Ã¢â€š ¬?. Agency theory argues that in the modern corporation, in which share ownership is widely held, managerial actions depart from those required to maximize shareholder returns (Berle and Means 1932; Pratt and Zeckhauser 1985). Since Jensen and Meckling (1976) proposed a theory of the firm (Agency Theory) based upon conflicts of interest between various contracting parties à ¢Ã¢â€š ¬Ã¢â‚¬Å" shareholders, company managers and debt holders à ¢Ã¢â€š ¬Ã¢â‚¬Å" a vast literature has been developed in explaining both aspects of these conflicts. Jensen and Meckling (1976) further specified the existence of à ¢Ã¢â€š ¬Ã…“agency costsà ¢Ã¢â€š ¬? which arise owing to the conflict s either between managers and shareholders (agency costs of equity) or between shareholders and debtholders (agency costs of debt). Financial markets capture these agency costs as a value loss to shareholders. The agency theory argues that an agency relationship exists when shareholders (principals) hire managers (agents) as the decision makers of the corporations. The agency problems arise because managers will not solely act to maximize the shareholdersà ¢Ã¢â€š ¬Ã¢â€ž ¢ wealth; they may protect their own interests or seek the goal of maximizing companiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ growth instead of earnings while making decisions. Jensen and Meckling (1976) suggested that the inefficiency may be reduced as managerial incentives to take value maximizing decisions increased. Agency costs are arising from divergence of interests between shareholders and company managers. à ¢Ã¢â€š ¬Ã…“Agency costsà ¢Ã¢â€š ¬? are defined by Jensen and Meckling as the sum of monitoring costs, bonding costs and residual loss. (1) Monitoring Costs Monitoring costs are expenditures paid by the principal to measure, observe and control an agentà ¢Ã¢â€š ¬Ã¢â€ž ¢s behavior. The economic impact of asymmetric information also results in various corporate agency problems. Firm managers (insiders) know more about their firm than shareholders and debt financiers (outsiders). When outsiders are unable to judge over the firms performance, they tend to qualify a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance as moderate. A result of this asymmetric information is that shares of a firm with a great performance are undervalued and vice versa. More specifically, information asymmetries between shareholders or bondholders and corporate executive management creates the necessity of monitoring (costs) and complications for the structuring of financial contracts. They may include the costs of preparing reliable accounting information and audits, writing executive compensation contracts and even ultimately the cost of replacing managers. Denis, Denis, and Sarin (1997) contended that effective monitoring is restricted to certain groups or individuals. Such monitors must have the necessary expertise and incentives to fully monitor manager. In addition, such monitors must provide a credible threat to managementà ¢Ã¢â€š ¬Ã¢â€ž ¢s control of the company. (2) Bonding Costs To minimize monitoring costs, managers tend to set up the principles or structures and try to act in shareholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s best interests. The costs of establishing and adhering to these systems are known as bonding costs. They may include the costs of additional information disclosures to shareholders, but management will obviously also have the benefit of preparing these themselves. Agents will stop incurring bonding costs when the marginal reduction in monitoring equals the marginal increase in bonding costs. As suggested by the agency theory, the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s best interests. However, since managers cannot be made to do everything that shareholders would wish, bonding provides a means of making managers do some of the things that shareholders would like by writing a less than perfect contract. (3) Residual Loss Despite monitoring and bonding, the interest of managers and shareholders are still unlikely to be fully aligned. Therefore, there are still agency losses arising from conflicts of interest. These are known as residual loss, which represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduce agency problems. There are some other types of agency costs as following: (4) Agency Costs of Debt There are three groups of participants in a firm, suppliers of equity, debt suppliers and firm managers. It is logical that they would try to achieve their goals with different measures. Suppliers of equity, or shareholders, are interested in high dividend ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢s and high share prices. Debt suppliers, on the other hand, are interested in interest and debt repayments, whereas firm managers would be focused on their financial remuneration. These conflicts of interest give rise to opportunity costs (whereby best strategies are often not adopted) and real costs (e.g., inspection costs). These costs decrease the market value of a firm. Kim and Sorensen (1986) investigated the presence of agency costs and their relation to debt policies of corporations. It is found that firms with higher insiders (managers) ownership have greater debt ratios than firms with lower insider ownership, which may be explained by the agency costs of debt or the agency costs of equity. (5) Agency Costs of Free Cash Flow The free cash flow theory presumes that there are enormous conflicts of interest between shareholders and stakeholders. This implies that managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ decisions do not always maximize the value of a firm (Jensen, 1986). Jensen (1986) also emphasized the continuous agency conflicts between top managers and shareholders. These conflicts are especially severe in firms with à ¢Ã¢â€š ¬Ã…“largeà ¢Ã¢â€š ¬? free cash flows. A free cash flow is the balance of money a company is left with when all projects are financed. If top managers hold more cash than profitable investment opportunities, they may overspend money on organization inefficiencies or invest it in projects with net present value (NPV) less than zero. The logic has it that higher debt levels reduces free cash flows and consequently increases the value of the company. The Stakeholders Model The Stewardship Model Corporate Governance in Oman Selection of framework related to this study The agency theory and family businesses ( Ownership Vs. Management) Introduction to the succession planning in the family Business The importance of succession planning Conclusion of Literature Review

Personal Statement For A Computer Programmer - 1064 Words

My dream is to manipulate my own world into my vision of a â€Å"perfect world,† and be God. To create my perfect world without having to take over this one, I decided GAMES. In order to manipulate games, I knew I had to become a software/computer programmer. Software programmers do the following, â€Å"Write programs in a variety of computer languages, such as C++ and Java.† That’s not the only thing they do! They also, â€Å"Build and use computer-assisted software engineering (CASE) tools to automate the writing of some code,† which in turn, makes developing a video game easier. In a whole, this is what I want to do with my life, body and soul. â€Å"Create, modify, and test the code, forms, and script that allow computer applications to run.† Yeah, this is want I want to do and...you’re confused on why I would chose this job. I’ll explain further. If my intro didn’t explain anything then this will! One reason why I like this job is because of the cash, money or as the business people say, income. I say this because,† Median wages (2014) : $37.28 hourly,$77,500 annually.† Another reason why I want this job is that it just...completes me.This means that it satisfies the Completion principle for me.â€Å"Achievement — Occupations that satisfy this work value are results oriented and allow employees to use their strongest abilities, giving them a feeling of accomplishment. Corresponding needs are Ability Utilization and Achievement.†.The last reason why I NEED this job is that it doesn’t requireShow MoreRelatedThe Field Of Computer Science Essay1517 Words   |  7 PagesIn the field of computer science, there are—which can be surprising to most—multiple occupations that involve more than just sitting in front of a computer and writing intricate codes. A systems analyst, for example, requires an individual to participate in an active team environment. Systems analysts work closely with many professionals such as programmers and hardware specialists to develop systems that can solve various kinds of problems. Additionally, a systems analyst is essential to numerousRead MoreBrief History of Software Engineering1733 Words   |  7 PagesBrief History of Software Engineering Some people refer to software as a set of steps which the machine what task to perform, others refer it as computer program stored in a computer which includes defined procedures or set of rules that lead to development of an output from a given input procedure for solving mathematical problem, Subah A.(2001, 4). It is produced to satisfy customer’s or individual’s needs. Let us ask ourselves, where does it come from? According to Subah A. ( 2001,2) ,Read MoreEssay on Information Systems and Services1142 Words   |  5 Pagesmainframes, minicomputers and microcomputers. Mainframes – The mainframe computer is a very powerful machine designed for large-scale data processing activities. These computers have steadily declined over the last 20 years due to their size, cost of operation and maintenance. Minicomputers – The minicomputer is often referred to as a server. It has the ability to offer networking, speed and power. These computers can be programmed and are much more interactive as well as more user friendlyRead MoreDifference between Application Software and Programming Software1568 Words   |  6 Pageslecture for computer software, then I realized there are two types of software that we are using in our daily life. In my opinion, I think that software is created to help solving problems in different sector and make human’s life easier. What is Software? Software is a term which defines the various types of programs that used to run and operate the computers or computer hardware. Software is required to be installed as a program in a computer before the instruction given by the computer hardware worksRead MoreRole Of The Board Of Directors832 Words   |  4 Pagesand shareholders, as well as industry experts and experienced outsiders who can offer new perspectives and strategies. I-4) The role of the external auditor is to audit the financial statements of a company to check for accuracy and completeness and then issue their opinion on the reliability of the financial statements. The external auditor is independent of the firm that he or she is auditing so they report to their bosses in their company and issue reports for the public to see. I-5) The CEO isRead MoreLeadership and Organizational Behavior1368 Words   |  6 Pagesdon t state a profit as a main purpose of their operations. They declare the service of the public interests is as the most important goal. The short trait of cultural background of non-profit companies would be ‘The culture of giving . This statement describes well the California Birth Defect Monitoring Program (CBDMP), the medium-sized non-profit organization where I was working for two years. The company is located in Berkeley and many employees are graduates from UC Berkeley, residing inRead MoreCyber Crimes And Cyber Crime Essay729 Words   |  3 PagesCyber-crime is divided in below 3 categories: 1. Persons: Cyber Crime against person can be conducted in many ways as in today’s world all the personal information is available on internet and one can use this against a person. 2. Property: These kind of crimes includes unauthorized computer tres passing via cyber space, transmission of harmful programmer or possession of comutersied information. 3. Government: One of growing cyber-crime and very dangerous at high scale is cyber-crime against governmentRead MoreThe World Of The Room Bedroom Of A Teenager1093 Words   |  5 Pages*Tick, tick-tick-tick, tick* The sound of computer keys being violently abused by a group of isolated geniuses breaks the silence in the building as computer programmers return from lunch. They are writing in a language of number, rather than letters, that is essential to communicate with the machines that are critical to life in the 21st century. Hackers or other lonely individuals with terrible social skills are the first thought that comes to people s mind when thinking of coders. However, thisRead More`` American Cool `` By Joel Dinerstein1022 Words   |  5 Pagesfor his original artistic vision in the development of the personal computer, but also for his instant visual recognition in the fields of technology and philanthropy as well as for his cultural legacy on the Bill Melinda Gates Foundation. Bill Gates had an original artistic vision to design computes for the general public since computers were a luxury only reserved for big businesses. Gates wanted to create a unique personal computer capable of interacting with its users through a monitor. ThereforeRead MoreNot Impossible Labs And Their Technology For Humanity1087 Words   |  5 PagesTechnology for Humanity Introduction: I. Attention Statement How many of you have ever imagined that the simplest, little inventions could create such a profound impact in people’s lives? (Insert Photo of Inventions) II. Topic Today I will talk about this California-based group of inventors called the Not Impossible Labs and their â€Å"Technology for Humanity.† III. Importance Not Impossible Labs is a group of innovators and programmers that develop open-sourced software and creative solutions

A Sociological Literature On Aesthetic Labor - 943 Words

Good (Enough) Clothes, Bad Bodies: Disadvantaged Women, Unemployment, Aesthetic Labor and the Embodied Disadvantages of Race Class, Age and Body Size Much research on gender inequality in the workplace has rightfully interrogated the â€Å"glass ceiling.† Yet it is also vital that gender scholars understand social barriers to what might be termed the â€Å"front door,† by examining the experiences of disadvantaged women seeking entry into the low-wage labor market. A sociological literature on aesthetic labor suggests that poor and working class women’s appearance may be an important barrier to their entry into the workforce, yet little research has explored processes by which adult women jobseekers might acquire these embodied capacities. To bridge this gap in the literature, I draw on thirteen months of ethnographic fieldwork conducted at a Successful Women’s Outfitters (SWO) affiliate office in the western United States. SWO is a nonprofit organization that aims to help unemployed disadvantaged women become economically self-sufficient by providing them with â€Å"style advice† and second-han d business attire to wear during job interviews. This paper builds on feminist critiques of U.S. welfare reform, bringing the literature on gendered and class-based volunteerism into conversation with workplace literature exploring interactive service work as a form of â€Å"inequality in action† (Hanser 2012). I analyze SWO’s policies and procedures, alongside everyday interactions between SWO staff,Show MoreRelatedASAM 5 Notes Essay6590 Words   |  27 Pagesï » ¿Lecture 1- Stories: a core demand? Saturday, February 8, 2014 2:42 PM    Stories: a core demand? Children constantly ask to be read stories The need for narrative may not be as core as. Three parts Minority Literature Minority literature The concept of minority has been central to the very founding of American life and government Metaphors of minorities Invisibility : lock of recognition Notion of otherness: radical difference WEB Dubois, the souls of Black Folk (1903) Historian andRead More Transcending Herbert Marcuse on Alienation, Art and the Humanities4411 Words   |  18 Pages ABSTRACT: This paper discusses how higher education can help us in accomplishing our humanization. It looks at the critical educational theory of Herbert Marcuse, and examines his notion of the dis-alienating power of the aesthetic imagination. In his view, aesthetic education can become the foundation of a re-humanizing critical theory. I question the epistemological underpinnings of Marcuses educational philosophy and suggest an alternative intellectual framework for interpreting and releasingRead MoreIntroduction to Urban Design and Community Planning3820 Words   |  16 PagesDiscrimination Act 1995 continues to raise awareness and enforce action on disability issues in the urban environment. HISTORICAL BACKGROUND OF: 1. AESTHETICS Ancient aesthetics We have examples of pre-historic art, but they are rare, and the context of their production and use is not very clear, so we can little more than guess at the aesthetic doctrines that guided their production and interpretation. Ancient art was largely, but not entirely, based on the seven great ancient civilizations:Read More Chinese Footbinding Essay3511 Words   |  15 Pagesabout the practice may only be drawn from 19th- and 20th-century writings, drawings or photographs. In addition, many of these documents represent a distinctly Western point of view, as they are primarily composed of missionary accounts and the literature of the various anti -footbinding societies.[1] The historical origins of footbinding are frustratingly vague, although brief textual references suggest that small feet for women were preferred as early as the Han dynasty. The first documented referenceRead MoreAbrahamson, E. (1996). Management Fashion. Academy of Management Review, 21, 1, 254-28515598 Words   |  63 Pagesfor these stakeholders. Modes, vogues, fads, fashions, rages, and crazes frequently revolutionize many aspects of cultural life. Theories of fashion, however, focus narrowly on fashions in aesthetic forms which, like clothing or haute cuisine, gratify our senses and emotional well-being. This focus on aesthetic fashions has two consequences. First, it confines fashion studies either to forms that have traditionally been considered trivial, such as mens beards (Robinson, 1976)or to forms that areRead MoreExperiences of Working in the Media2108 Words   |  8 Pagesused by the workforce to withstand ethics that guide media personality in media production. I am also obliged to knowing the challenged faced by the media workforce; and how their working behavioral characteristic reflect to the concept of emotional labor theory in media vicinity. Other necessary objectives are to gain an understanding on the general expectations of working in media, as well as the vantages and limitations of working in such an en vironment. Methodology I did conduct my research byRead MoreEssay on The Metropolitan Man3091 Words   |  13 Pagesrural life. The metropolitan man’s life and continually speeding up with little time for emotional growth. The emphasis here rests highly on the intellect and developing a keen understanding of academics and societal regularities, such as art, literature, and fashion. The pace of rural living is much more lethargic. Consequently more time is spent developing deep meaningful relationships with people. As Simmel also points out, a person in the city could spend their whole life not knowing theirRead MoreW.E.B. Du Bois Essay1794 Words   |  8 Pages After teaching for several years, Du Bois conducted an exhaustive study of the social and economic conditions of urban blacks in Philadelphia in 1896 and 1897. The results were published in the Philadelphia Negro (1899). This was the first sociological text on a black community published in the United States. In 1897 Du Bois moved to Atlanta University, where he taught economics and history for more than a decade. His most widely acclaimed work, The Souls of Black Folk (1903) was publishedRead MoreHumanities11870 Words   |  48 PagesThe student is advised to consult more advanced texts to gain further understanding of how to appreciate art more fully. HUMANITIES: What is it? †¢ The term Humanities comes from the Latin word, â€Å"humanitas† †¢ It generally refers to art, literature, music, architecture, dance and the theatre—in which human subjectivity is emphasized and individual expressiveness is dramatized. HOW IMPORTANT IS HUMANITIES †¢ The fields of knowledge and study falling under humanities are dedicated to theRead More1. Introduction University management nowadays has to do all their best in order to organize an3000 Words   |  12 Pagescombination of three quality criteria: operability, training, and communicativeness. Usability in Boehm’s model is related to As-Is software utility. FURPS model determines usability as a non-functional characteristic, which includes human factors, aesthetics, consistency in the user interface, online and context-sensitive help, wizards, user documentation, and access to training materials. According to Dromey’s quality model usability is matched with descriptive product’s properties. TAM is oriented

Industrial Economic Research Paper Free Essays

Qustion1 Identify and explain the market structure in which the company is operating Pos Malaysia Market structure * Monopoly firm Introduction (Pos Malaysia) Pos Malaysia Berhad is Malaysia’s premier physical communications provider. Pos Malaysia also has a widespread network of 701 post offices all over the country, in addition to its network of mini post offices, mobile post offices, postal agents and stamp agents, making it one of the most extensive retail networks in Malaysia. Pos Malaysia’s Strategic Business Units that aim to provide quality, reliable, timely and innovative solutions to its customers, are made up of PosMel (mail and postal services), PosLaju (courier and express mail services), and PosNiaga (retail business services). We will write a custom essay sample on Industrial Economic Research Paper or any similar topic only for you Order Now Pos Malaysia also acts as a counter collection and payment agency for a range of financial transactions, such as bill payments, remittance, insurance and unit trusts. Pos Malaysia consists of 3 Main Core Business Units: Pos Mel ,Pos Laju and Pos Niaga. Poslaju or EMS service caters to all segments of the business community and the general public. There are 37 Poslaju Centres nationwide offer all types of courier services. Besides Mail and Express servicer. Poslaju or EMS service caters to all segments of the business community and the general public. Type of courier services Inbound Logistics * Customs Clearance, Import permit documentation, Transportation, Warehousing, Distribution channel/break bulk, Proof of delivery, Track and trace. Outbound Logistics * Customs clearance ,Export documentation ,Transportations ,Warehousing ,Distribution channel/break bulk ,Proof of delivery ,Track and trace Monopoly market structure (Pos Malaysia) Government protection Pos Malaysia Berhad is a Malaysian postal service company that was privatized in 1992 from a government department into a business corporation. Government also protects and helps pos Malaysia if that firm has shortage cost and losses. was attributed to the pos Malaysia is the first company established to provide these services and the company has long operated, known by society and high cost in the provision of post Malaysia. Society loyalty The society in Malaysia has known about brand of pos Malaysia and the society also has familiar to uses pos Malaysia as services of mail. The public will be more confident in such a service as Pos Malaysia is an agency under the ministry and the government is indirectly involved in ensuring the security of the items kept here. Maximize profit A monopoly market exists when there is huge number of buyers but small or very limited number of sellers in the market. Monopoly is the only supplier of a product for which there is no close substitute. In monopoly market, the firm has get a maximize profit, if the manager has have good skill and knowledge to manages that company. For example, pos Malaysia have a good manages, and that means this company can get a height profit. In monopoly market, pos Malaysia can set its own price and the prices chosen affects the quantity it sells. Pos Malaysia is the only licensed mail services provider in Malaysia and is the leader in the Malaysia Courier Services. Pos Malaysia posted a net profit of RM 61 million for the nine months ended September 2004 – an increase of more than 40 per cent from the corresponding period in the previous year. It is projected to earn a net profit of close to RM100 million this year based on existing postal rates. Power of set prices In monopoly market, pos Malaysia can put the price of the service with a high rate to the profit of the community to obtain greater. This can be carried out in the market as pos Malaysia is the only domestic postal mail offered in Malaysia Advantages in monopoly Stability of prices * In a monopoly market the prices are most of the times stable. This happens because there is only one firm involved in the market that sets the prices if and when it feels like. In other types of market structures prices are not stable and tend to be elastic as a result of the competition that exists but this isn’t the case in a monopoly market as there is little or no competition at all. Source of revenue for the government * The government gets revenue in form of taxation from monopoly firms. Massive profits * Due to the absence of competitors which leads to high number of sales monopoly firms tend to receive super profits from their operations. The massive profits realized may be used in such things as launching other products, carrying out research and development among many other things that may be beneficial to the firm. Question 2 Comment if there are barriers to entry Definition Barriers to entry are designed to block potential entrants from entering a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits in the long run. Barriers to entry have the effect of making a market less contestable. Defined an entry barrier as â€Å"A cost of producing (at some or every rate of output) which must be borne by a firm which seeks to enter an industry but is not borne by firms already in the industry. Barriers to entry in( pos Malaysia). In pos Malaysia, there are barriers to entry. Among them are: Advertising and marketing * Developing consumer loyalty by establishing branded products can make successful entry into the market by new firms much more expensive. Cost Advantages Lower Costs; through experience of Being in the market for missing time, allows the existing postal company Malaysia’s to cut price and win price wars if another firm enter the market. Absolute cost advantages * Allows an incumbent firm to earn excess profits without feat of new firm entering the market. for example in the market, pos Malaysia price of the service is able to offer a cheaper service player medals RM7 per unit, but oth er companies likes DHL and FedEx only able to offer prices as low as RM 12 mail service. so its pos Malaysia cans set PRICES at rm10. Which is are more chipper, than the more customer use pos Malaysia services and also get a highest profit. Government Restrictions * Government is the source of barriers to entry that are created by patents and copyrights. But these are not the only barriers to entry enabled by government. Government is, after all, the entity that establishes the rules of the game. Governments frequently erect barriers to entry by legally limiting the number of participants in a market. Legal restrictions for public utilities are usually designed to make the most effective use of natural monopoly markets that can create serious inefficiency problems. Other legal restrictions, such as licenses or charters, are generally intended to pursue other goals, but create barriers to entry nonetheless. For example, pos mel only provided by pos Malaysia. Although there are big rivals like FedEx and DHL outside, but pos Malaysia offer cheaper prices. First mover advantages * The first firm to enter incurs lower marketing costs because it faces no rivals. Later firm face higher marketing costs because they must compete against the first firm. If the presence of the incumbent raises the marketing costs of the second firm to enter, then the first firm has permanent advantages and can maintain high prices How to cite Industrial Economic Research Paper, Essays

Industrial Economic Research Paper Free Essays

Qustion1 Identify and explain the market structure in which the company is operating Pos Malaysia Market structure * Monopoly firm Introduction (Pos Malaysia) Pos Malaysia Berhad is Malaysia’s premier physical communications provider. Pos Malaysia also has a widespread network of 701 post offices all over the country, in addition to its network of mini post offices, mobile post offices, postal agents and stamp agents, making it one of the most extensive retail networks in Malaysia. Pos Malaysia’s Strategic Business Units that aim to provide quality, reliable, timely and innovative solutions to its customers, are made up of PosMel (mail and postal services), PosLaju (courier and express mail services), and PosNiaga (retail business services). We will write a custom essay sample on Industrial Economic Research Paper or any similar topic only for you Order Now Pos Malaysia also acts as a counter collection and payment agency for a range of financial transactions, such as bill payments, remittance, insurance and unit trusts. Pos Malaysia consists of 3 Main Core Business Units: Pos Mel ,Pos Laju and Pos Niaga. Poslaju or EMS service caters to all segments of the business community and the general public. There are 37 Poslaju Centres nationwide offer all types of courier services. Besides Mail and Express servicer. Poslaju or EMS service caters to all segments of the business community and the general public. Type of courier services Inbound Logistics * Customs Clearance, Import permit documentation, Transportation, Warehousing, Distribution channel/break bulk, Proof of delivery, Track and trace. Outbound Logistics * Customs clearance ,Export documentation ,Transportations ,Warehousing ,Distribution channel/break bulk ,Proof of delivery ,Track and trace Monopoly market structure (Pos Malaysia) Government protection Pos Malaysia Berhad is a Malaysian postal service company that was privatized in 1992 from a government department into a business corporation. Government also protects and helps pos Malaysia if that firm has shortage cost and losses. was attributed to the pos Malaysia is the first company established to provide these services and the company has long operated, known by society and high cost in the provision of post Malaysia. Society loyalty The society in Malaysia has known about brand of pos Malaysia and the society also has familiar to uses pos Malaysia as services of mail. The public will be more confident in such a service as Pos Malaysia is an agency under the ministry and the government is indirectly involved in ensuring the security of the items kept here. Maximize profit A monopoly market exists when there is huge number of buyers but small or very limited number of sellers in the market. Monopoly is the only supplier of a product for which there is no close substitute. In monopoly market, the firm has get a maximize profit, if the manager has have good skill and knowledge to manages that company. For example, pos Malaysia have a good manages, and that means this company can get a height profit. In monopoly market, pos Malaysia can set its own price and the prices chosen affects the quantity it sells. Pos Malaysia is the only licensed mail services provider in Malaysia and is the leader in the Malaysia Courier Services. Pos Malaysia posted a net profit of RM 61 million for the nine months ended September 2004 – an increase of more than 40 per cent from the corresponding period in the previous year. It is projected to earn a net profit of close to RM100 million this year based on existing postal rates. Power of set prices In monopoly market, pos Malaysia can put the price of the service with a high rate to the profit of the community to obtain greater. This can be carried out in the market as pos Malaysia is the only domestic postal mail offered in Malaysia Advantages in monopoly Stability of prices * In a monopoly market the prices are most of the times stable. This happens because there is only one firm involved in the market that sets the prices if and when it feels like. In other types of market structures prices are not stable and tend to be elastic as a result of the competition that exists but this isn’t the case in a monopoly market as there is little or no competition at all. Source of revenue for the government * The government gets revenue in form of taxation from monopoly firms. Massive profits * Due to the absence of competitors which leads to high number of sales monopoly firms tend to receive super profits from their operations. The massive profits realized may be used in such things as launching other products, carrying out research and development among many other things that may be beneficial to the firm. Question 2 Comment if there are barriers to entry Definition Barriers to entry are designed to block potential entrants from entering a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits in the long run. Barriers to entry have the effect of making a market less contestable. Defined an entry barrier as â€Å"A cost of producing (at some or every rate of output) which must be borne by a firm which seeks to enter an industry but is not borne by firms already in the industry. Barriers to entry in( pos Malaysia). In pos Malaysia, there are barriers to entry. Among them are: Advertising and marketing * Developing consumer loyalty by establishing branded products can make successful entry into the market by new firms much more expensive. Cost Advantages Lower Costs; through experience of Being in the market for missing time, allows the existing postal company Malaysia’s to cut price and win price wars if another firm enter the market. Absolute cost advantages * Allows an incumbent firm to earn excess profits without feat of new firm entering the market. for example in the market, pos Malaysia price of the service is able to offer a cheaper service player medals RM7 per unit, but oth er companies likes DHL and FedEx only able to offer prices as low as RM 12 mail service. so its pos Malaysia cans set PRICES at rm10. Which is are more chipper, than the more customer use pos Malaysia services and also get a highest profit. Government Restrictions * Government is the source of barriers to entry that are created by patents and copyrights. But these are not the only barriers to entry enabled by government. Government is, after all, the entity that establishes the rules of the game. Governments frequently erect barriers to entry by legally limiting the number of participants in a market. Legal restrictions for public utilities are usually designed to make the most effective use of natural monopoly markets that can create serious inefficiency problems. Other legal restrictions, such as licenses or charters, are generally intended to pursue other goals, but create barriers to entry nonetheless. For example, pos mel only provided by pos Malaysia. Although there are big rivals like FedEx and DHL outside, but pos Malaysia offer cheaper prices. First mover advantages * The first firm to enter incurs lower marketing costs because it faces no rivals. Later firm face higher marketing costs because they must compete against the first firm. If the presence of the incumbent raises the marketing costs of the second firm to enter, then the first firm has permanent advantages and can maintain high prices How to cite Industrial Economic Research Paper, Essays

Report on Rmg Sector in Bangladesh free essay sample

[pic] [pic] At first we desire to express our deepest sense of gratitude of almighty Allah. With profound regard we gratefully acknowledge our respected course teacher Mr. A. K. Nabil Ahmed for his generous help and day to day suggestion during preparation of the report. He is so much an inspiration and guidance to us that we are, short of words in expression our gratitude. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this ubject . And finally, thanks to my group members as he serious and prolific towards making this assignment. Once more time to Sir, we owe more than we can mention†¦Ã¢â‚¬ ¦mostly for teaching us to see the silver lining in every hard work [pic] [pic] [pic] 1. 1 Abstract The ready-made garment (RMG) industry of Bangladesh started in the late 1970s and became a prominent player in the economy within a short Period of time. The industry has contributed to export earnings, foreign exchange earnings, employment creation, poverty alleviation and the mpowerment of women. The export-quota system and the availability of cheap labor are the two main reasons behind the success of the industry. Shirts, T-shirts, trousers, sweaters and jackets are the main products manufactured and exported by the industry. Bangladesh exports its RMG products mainly to the United States of America and the European Union. The Ready Made Garments (RMG) sector plays a pivotal role in the economy of Bangladesh. This sector accounts for approximately 76% of the total export earnings and nearly 10% of GDP. . 2 Introduction Like other 3rd world countries Bangladesh is a developing country. Her economic development depends firstly on Agriculture and secondly on Industry. Although Bangladesh is not developed in industry, it has been enriched in Garment industries in the recent past years. For Bangladesh, the readymade garment export indu stry has been the proverbial goose that lays the golden eggs for over fifteen years now. Traditionally, the jute industry dominated the industrial sector of the country until the 1970s. Since the early 1980s, the RMG industry has emerged as an important player in the economy of the country. In the field of Industrialization garment industry is a promising step. It is making significant contribution in the field of our export income and in the economical development of our country. At present the government of our country earns billions of dollars by exporting ready-made garments products to other countries. We have not achieved this success over night; we have some elements that help us to achieve this success. At present we are competing with our neighboring country; India and China. Though we are earning a handsome amount of profit each year from this sector, the ready-made garment sector is suffering with a lot of problems. We should solve these negative situations by ensuring proper steps [pic]  ¦ Broad objective: To gather knowledge about the overall scenario of Ready-Made Garments (RMG) Sector in Bangladesh.  ¦ Specific objectives: To attain the broad objective following specific objectives were pursued .  ¤To know briefly about economic significant of RMG. To identify what factors are affecting an entrepreneur  ¤ To identify the performance of an entrepreneur. 1. 4 Scope This report is on a wide exporting sector of Bangladesh. So, mainly we have tried to focus on the following factors.  ¤Current scenario of ready-made garment industry.  ¤Reasons for a healthy growth  ¤ Reasons for having comparative advantages in the world market.  ¤ Economical and financial contribut ion of this industry in Bangladeshi economy.  ¤ Beside these, we also brought several foreign benchmarks and statistics for doing the research work in a better way. . 5 Mythology This report has been prepared on the basis of experience gathered through learning annual report. For preparing this report, I have also get information from website of BGMEA, BKMEA Export Promotion Bureau and many Government and non government organization. I have presented my experience and finding by using different tables, which are presented in the analysis part. The details of the work plan are furnished below:  ¦ Relevant data for this report has been collected primarily by direct investigations of different leasing company’s annual report and website. The information and data for this report have been collected from secondary sources. The secondary sources of information are annual reports, websites and different manuals.  ¦ Data collected from secondary sources have been processed manu ally and qualitative approach in general and quantitative approach in some cases has been used throughout the study.  ¦ Qualitative approach has been adopted for data analysis and interpretation taking the processed data as the base. So the report relies primarily on an analytical judgment and critical reasoning. 1. 6 Literature Review Several Organizations have analyzed aspects of the garment industry in Bangladesh. Of thevarious aspects of the industry, the problems and the working conditions of female workers have received the greatest attention. There are several studies including The Centre for Policy Dialogue (CPD), study by Debapriya Bhattacharya, Mustafizur Rahman and Ananya Raihan(2002) and International Finance Corporation (2007) study on this topic. Both of these studies use accepted survey and research methodology to analyze a wealth of data on the social and economic background, Contribution of the RMG sector. Professor Muzaffar Ahmad looks at the industrial organization of the sector and discusses robustness and long-term viability of apparel manufacturing in Bangladesh. Wiigton (2000) provides a good overview of this industry,especially the developments in the early years. Nidhi Khosla writes on the women worker in Journal of International Women’s Studies (Vol. 11 #1 November 2009). The Bangladesh Planning Commission under the Trade and Industrial Policy (TIP) project also commissioned several studies on the industry. Hossain and Brar (2004) consider some labor-related issues in the garment industry. Quddus (2006) presents a profile of the apparel sector in Bangladesh and discusses some other aspects of the industry. Quddus (2006) presents results from a survey of apparel entrepreneurs and evaluates the performance of entrepreneurs and their contribution to the success of this industry. Islam and Quddus (2006) present an overall analysis of the industry to evaluate its potential as a catalyst for the development of the rest of the Bangladesh economy. [pic] 2. 1 History: Once upon a time the cloth of Bangladesh achieved worldwide fame. Maslin and Jamdani cloth of our country were used as the luxurious garments of the royal figures in Europe and other countries. The British rulers in India didn’t develop our cloth industries at all. Rather they destroyed them and imported cloths from England. After the emergence of Bangladesh radical change has come to our garment sector. Garment industries started working from the 10s of the late century. 2. 2 An Overview of the Bangladesh Ready-Made Garment Industry: The RMG industry is the only multi-billion-dollar manufacturing and export industry in Bangladesh. Whereas the industry contributed only 0. 001 per cent to the country’s total export earnings in 1976, its share increased to about approximate 80 percent of those earnings in 2010. Bangladesh exported garments worth the equivalent of $12348 Million in 2010, which was about 3. 00 percent of the global total value ($276 billion) of garment exports. The country’s RMG industry grew by more than 15 percent per annum on average during the last 15 years. The foreign exchange earnings and employment generation of the RMG sector have been increasing at double-digit rates from year to year. Some important issues related to the RMG industry of Bangladesh are noted in table 1 Table 1. Important issues related to the Bangladesh ready-made garment industry |Year(s) |Issue | |1977-1980 |Early period of growth. | |1982-1985 |Boom days. |1985 |Imposition of quota restrictions. | |1990s |Knitwear sector developed significantly. | |1993-1995 |Child labor issue and its solution | |2003 |Withdrawal of Canadian quota restriction. | | | |2005 |Phase-out of export-quota system. | Source: Compiled by the author from Quddus and Rashid (2000), Mainuddin (2000) and databases of the Bangladesh Garment Manufacturers and Exporters Association, and the Export Promotion Bureau, Bangladesh Currently, there are more than 4,000 RMG firms in Bangladesh. More than 95 percent of those firms are locally owned with the exception of a few foreign firms located in export processing zones (Gonzales, 2002). The RMG firms are located mainly in three main cities: the capital city Dhaka, the port city Chittagong and the industrial city Narayangonj. Bangladesh RMG firms vary in size. Based on Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, Mainuddin (2000) found that in1997 more than 75 per cent of the firms employed a maximum of 400 employees each. Garment companies in Bangladesh form formal or informal groups. The grouping helps to share manufacturing activities, to diversify risks; horizontal as well as vertical coordination can be easily found in such group activities. Ready-made garments manufactured in Bangladesh are divided mainly into two broad categories: woven and knit products. Shirts, T-shirts and trousers are the main woven products and undergarments, socks, stockings, T-shirts, sweaters and other casual and soft garments are the main knit products. Woven garment products still dominate the garment export earnings of the country. The share of knit garment products has been increasing since the early 1990s; such products currently account for more than 40 percent of the country’s total RMG export earnings (BGMEA website). Although various types of garments are manufactured in the country, only a few categories, such as shirts, T-shirts, trousers, jackets and sweaters, constitute the major production-share (BGMEA website; andante, 2001). Economies of scale for large-scale production and export-quota holdings in the corresponding categories are the principal reasons for such a narrow product concentration. 2. Reason behind the Growth of RMG in Bangladesh: The prime reason why garment industries have come out to be the champion in the field of export is obviously the cheap labor. Women contribute to the working force in these garment factories, as they are relatively cheaper than men. 2. 3. 1 Low cost labor: As Bangladesh is an overpopulated country it is very easy for the garment industries to hire labors at a lower rate. At present the government of our country has announced minimum wage to the garment workers but the industries can still earn a handsome amount of profit by exporting their product. Although it has increase but comparatively it is still low. Source: Ministry of Labor and Employment, Bangladesh. July 26, 2010 |Class |Existing Wage |Announce Wage |Increase in % | |Grade-1 |5,140. 00 |9,300. 00 |80. 93% | |Grade-2 |3,840. 00 |7,200. 00 |87. 0% | |Grade-3 |2,449. 00 |4,120. 00 |68. 23% | |Grade-4 |2,250. 10 |3,763. 00 |67. 24% | |Grade-5 |2,046. 00 |3,455. 00 |68. 87% | |Grade-6 |1,851. 0 |3,210. 00 | 73. 47% | |Grade-7 |1,662. 50 |3,000. 00 |80. 45% | |Apprentice | 1,200. 00 |2,500. 00 | 108. 33% | 2. 3. 2 Export-quota system: The â€Å"export-quota system† in trading garment products played a significant role in the success of the industry. However, that quota system came to an end in 2004. Therefore, the competitiveness issue needs to be addressed, with special attention given to the long-term sustainability of the industry. Unilateral restriction, short-term arrangement (STA), long term arrangement (LTA), Multi-fiber. Arrangement (MFA) and finally the WTO Agreement on Textiles and Clothing (ATC) are the chronological steps through which the â€Å"export-quota system† was administered until it was finally abolished on 31 December 2004, making worldwide textile and garment trade quota-free. . 3. 3 Easy Communication: It is very easy industries to collect raw materials from other countries and they can easily export their produced goods to the other countries. 2. 3. 4 Government Support: Government is supporting directly and indirectly the industries and monitors their activities so that they can perform properly. Government reduces tariff and supply production factors like electricity and water to them 2. 4 Produ ct Tree Bangladesh exports about 63 items to different apparel markets. Ready-made garments manufactured in Bangladesh are divided mainly into two broad categories: woven and knit products. Shirts, T-shirts and trousers are the main woven products and undergarments, socks, stockings, T-shirts, sweaters and other casual and soft garments are the main knit products. Woven garment products still dominate the garment export earnings of the country. The share of knit garment products has been increasing since the early 1990s; such products currently account for more than 40 per cent of the country’s total RMG export earnings (BGMEA website). Although various types of garments are manufactured in the country, only a few categories, such as shirts, T-shirts, trousers, jackets and sweaters, constitute the major production-share (BGMEA website; and Nath, 2001). It needs to be mentioned here that Bangladesh produces a very limited categories of expensive and fashion oriented garments. Economies of scale for large-scale production and export-quota holdings in the corresponding categories are the principal reasons for such a narrow product concentration. Main apparel items exported from Bangladesh is shown in the tree – diagram drawn below: YEAR |WOVEN |KNIT |TOTAL | | | |SWEATER | | |1995-96 |1948. 81 |598. 32 |2547. 13 | |1996-97 |2237. 5 |763. 3 |3001. 25 | |2004-2005 | 3598. 20 |2819. 47 |6417. 67 | |2005-2006 |4083. 82 |3816. 98 |7900. 8 | |2006-2007 |4657. 63 |4553. |9211. 23 | |2007-2008 |5167. 28 |5532. 52 |10699. 8 | |2008-2009 |5918. 51 |6429. 26 |12347. 77 | 2. 5 Exporting Condition of Garments Industry: The R eady-Made Garments (RMG) industry occupies a unique position in the Bangladesh economy. It is the largest exporting industry in Bangladesh, which experienced phenomenal growth during the last 20 years. By taking advantage of an insulated market under the provision of Multi Fiber Agreement (MFA) of GATT, it attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a key role in employment generation and in the provision of income to the poor. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. Over the past twenty years, the number of manufacturing units has grown from 180 to over 3600. The sector has also played a significant role in the socio- economic development of the country. [pic] |YEAR |EXPORT OF RMG |TOTAL EXPORT |% OF RMGS TO | | |(IN MILLION US$) |OF BANGLADESH |TOTAL EXPORT | | |(IN MILLION US$) | | |1983-84 |31. 57 |811. 00 |3. 89 | |1984-85 |116. 2 | 934. 43 | 12. 4 | |2000-01 |4859. 83 |6467. 30 | 75. 14 | |2001-02 |4583. 75 |5986. 09 |76. 57 | |2002-03 |4912. 09 |6548. 44 | 75. 1 | |2003-04 |5686. 09 |7602. 99 |74. 79 | |2004-05 | 6417. 67 | 8654. 52 |74. 15 | |2005-06 |7900. 80 |10526. 16 |75. 6 | |2006-07 |9211. 23 |12177. 86 |75. 64 | |2007-08 |10699. 80 |14110. 80 |75. 83 | |2008-09 |12347. 77 |15565. 9 |79. 33 | 2. 6 Contribution in National Income: When the garment industries 1st started to export, the sector was not paid much attention but the situation has changed and at present it is earning the highest amount of foreign currencies in ou r country. [pic]  ¦ Major Product Export from Bangladesh: |Year |Product |Export |% | | 2 |RMG |12347. 77 |79. 3 | |0 | | | | |0 | | | | |8 | | | | || | | | | |2 | | | | |0 | | | | |0 | | | | |9 | | | | | |Frozen Food |454. 53 |2. 92 | | |Tea |12. 29 |0. 8 | | |Raw Jute |148. 17 |0. 95 | | |Jute Goods |373. 18 |2. 40 | | |Leather |177. 32 |1. 14 | | |Others |1508. 06 |9. 69 | | | | | [pic] [pic] 2. 7. 1 Backward Linkage: Backward linkage means the use by one firm or industry of produced inputs from another firm or industry (Alan V Deardorff 2001) That means the finished garment relies on three steps; first level for converting fibers/cotton toyarns, second step for converting yarns to grey fabrics and the final step for converting gray fabrics to dyed, printed of other finished fabrics. Out of three steps, Bangladesh is only capable of knitting, finishing in knitwear sectors but far behind in producing yarn, fabrics which is a major factor for woven section. Only success came to a ccessories where 80% demand of our country was fulfilled. The success of the government industry very much depends on how effectively RMG sector linkages may operate backward and forward. If the manufacturer has effective control over the supply of raw materials, Components and ancillary services needed to produce final product. Then the production is likely to be interrupted. If the company develops an effective marketing service strategies that provide right signal, and if marketing and distributing system as a whole are effective for having the products reach the target markets, then the sales revenue for the company is likely to be maximized. It means that to minimize cost of production and maximize sales revenues both backward and forward linkages need to be integrated. Here the issue of developing backward linkages is discussed with reference to the desirability of having control over the supply of inputs of RMG industry, mainly, fabric, yarn and processing status (Siddique, 2004). These three steps are integrated into each other as shown in table 1. It shows that these three steps are essential for backward linkage integration (BGMEA, January 2005) Some other problems that the industries face #Some other problems of RMG sector Dependency on different countries for raw materials †¢ Illiterate, unskilled and unsatisfied Workers †¢ Lacking of Resources †¢ Political Instability †¢ Low Working Salary: †¢ Lack in Marketing Tactics †¢ M/C advancement is necessary †¢ Absence of easily on-hand middle management. †¢ Small number of manufacturing methods †¢ Lack of training organizations for industrial workers, supervisors and managers †¢ Fewer process units for textiles and garments †¢ Incompetent ports, entry/exit complicated and loading/unloading takes much time †¢ Time-consuming custom clearance [pic] 3. 1 SWOT Analysis: 3. 1. 1 Strengths 1. The biggest foreign currency earning industry. 2. Ancillary services, fees, commission are more. 3. RMG credit experts are available. 4. Competitors like China doesn’t have vertical integration. 3. 1. 2 Weaknesses 1. Backward Linkage industry is absent. 2. Automation is not cost effective in our country. 3. External raw materials supply. 3. 1. 3 Opportunities 1. Investment in Backward Linkage Industry. 2. Liberalized Globalization will push to improve the quality of the RMG products. 3. Composite plants will get advantage by reducing lead time. 3. 1. 4 Threats 1. WTO agreement 2. Pressure on Compliance issues from consumer groups. 3. Negative image of Bangladesh in the international market for less concern on human and social issues. [pic] 4. 1 Recommendation: Bangladesh economy at present is more globally integrated than at any time in the past. The MFA phase-out will lead to more efficient global realignments of the Garments and Clothing industry. The phase out was expected to have negative impact on the economy of Bangladesh. Recent data reveals that Bangladesh absorbed the shock successfully and indeed RMG exports grew significantly both in FY07 and (especially) in FY08. Due to a number of steps taken by the industry, Bangladesh still remains competitive in RMG exports even in this post phase-out period. Our Garments Industries can improve their position in the world map reducing the overall problems. Such as management labor conflict, proper management policy, efficiency of the manager, maintainable time schedule for the product, proper strategic plan etc. Government also have some responsibility to improve the situation by providing- proper policy to protect the garments industries, solve the license problem, quickly loading facility in the port, providing proper environment for the work, keep the industry free from all kind of political problem and the biasness. Credit must be provided when the industry fall in need. To be an upper position holder in the world Garments Sector there is no way except follow the above recommendations. We hope by maintaining proper management and policy strategies our country will take the top position in future.  ¦ Optimists see opportunities in challenges; pessimists see only challenges in opportunities.  ¦ With MFA phase-out US market for apparels is going expand dramatically as  ¦ uncompetitive US firms are compelled to make their exit. There will be enormous  ¦ opportunities for competitive players to make new breakthroughs in US market.  ¦ Bangladesh’s objective should be to retain the current share of 2. 5% in US market during the first 3 years of phase-out (2005-8). Then enhance the market share to 3% and above. Bangladesh should take the strategy of cautious Optimism [pic]  ¦ http://www. bgmea. com. bd/  ¦ http://www. bkmea. com/  ¦ http://www. epb. gov. bd/  ¦ http://www. bbs. gov. bd/  ¦ http://www. mincom. gov. bd/  ¦ http://w ww. btmadhaka. com/  ¦ http://www. epzbangladesh. org. bd  ¦ http://www. bangladesh-bank. org/  ¦ http://www. bangladeshknitwear. com/  ¦ http://www. nbr-bd. org/  ¦ http://www. fbcci-bd. org/  ¦ http://www. ideas. repec. org/p/pdb/opaper/50. html  ¦ https://www. cia. gov/library/publications/the-world-factbook/geos/bg. html  ¦ http://www. en. wikipedia. org/wiki/Bangladeshi_RMG_Sector Jacket Shirt Trouser Polo shirt Sweater ‘T’ Shirt KNITWEAR WOVEN RMG

Economic Development free essay sample

Nigeria as a developing economy cannot achieve full development without the contribution of the small and medium scale enterprises (SMEs). In most developed economies, the main stay of their economy has been attributed to the effectiveness of the small and medium scale enterprises (SMEs). Small and Medium Scale Enterprises (SMEs) is accepted globally as a tool for empowering the citizenry and economic growth. It has been associated with the rapid economic growth of countries in Asia and North America. In Nigeria efforts have been made by successive governments to reduce poverty and accelerate economic growth by increasing foreign direct investment, diversifying the economy, enacting policy frameworks which favor small business ownership and sometimes initiating employment and entrepreneurship programs. Nigeria as a developing economy needs the contribution of the small and medium scale enterprises (SMEs) to be able to become one of the twenty most industrialized economies by the year 2020. Therefore, the problem is to critically examine the role of the small and medium scale enterprises (SMEs) in the growth nd development of the Nigerian economy. We will write a custom essay sample on Economic Development or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The role of Small and Medium Scale Enterprises in facilitating the economic development of any country cannot be underestimated. In Nigeria, for example, SMEs provide an average of 50 per cent of Jobs and same proportion of industrial output. Experts say that the SME sector, can thrive in Nigeria, if the government can address the challenges of poor infrastructure, lack of financing, multiple taxation and inconsistent government policy. The Africa Economic Analysis reported that, The proportion of Nigerian SMEs and heir impact on the economy is pretty much, similar to those in other countries of the world, especially in the advanced economies. There are approximately 23 million small businesses in the United States. These altogether employ more than 50 per cent of the private workforce, and generate more than half of the nations Gross Domestic Product. In the European Union, SMEs are seen as largely essential for European employment. Each year, one million new SMEs are set up in the European Union. SMEs account for 99. 8 per cent of all companies and 65 per cent of business turnover in the European Union. The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, Alhaji Muhammad Umar, at a recent forum in Abuja said that the agency targets to develop a minimum of 10,000 small businesses which will in turn generate about one million Jobs annually. This study will attempt to denne what constitute small and medium scale enterprises (SMEs) from different authors, the challenges being faced by SMEs in Nigeria, the role of government in promoting the development and growth of SMEs, the role of financial institutions, and to also look at the role of the small and medium scale nterprises (SMEs) in the growth and development of the Nigerian economy. REFERENCES Central bank of Nigeria 2003, Seminar on small and medium industries equity investments scheme (smieis) publication of CBN Training Centre, Lagos. Edit Iukacs, 2003, The economic role of SMEs in world economy, especially in Europe, institute of business sciences, university of miskolic, Hungary. Normah M. A. 2005, SMEs: Building block for economic growth, Kuala Lumpur. Rotimi 0. , 2006, 6th African venture capital association conference, Dakar, Senegal.