Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010, 2009 and 2008 is conducted and evaluated its respective ratios and other financial data.The peer comparison of financial ratios between RHB Bank & Hong Leong Bank is evaluated and analysed to see which bank performs better in 2010. The other key ratios are also calculated in for deep analysis on to see how well these two banks in Malaysia perform in 2010. In addition, its credit risk that includes the risk management and its policy of both banks is then evaluated and compared to see which bank manages its credit risk properly.Fi nally, this report provides an overview of the performance of both RHB Bank and Hong Leong Bank for the financial year ended in 2010 and conclude which bank perform better in terms of various financial ration and management of credit risk. II II Assignment 1 Part A: Bank Performance Question 1: Dupont Model: a. Dopont Model: The DuPont model analysis is a common form of financial statement analysis and this model provides information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the firm as a result of changes in one or more of these actors (Milbourn & Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to determine the strength and weakness of the firm. It is also a very powerful financial tool to assist financial analyst, shareholders, investors and bankers in understanding the profitability of the firm and a tool that evaluate the firm’s financial statements by comparing the relationships within the income statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the return of equity (ROE).The ROE is a strong measure on how well the management of the bank creates value to the shareholders (Pinsent, 2010). It is also a good starting point in the analysis of a bank’s financial condition. ROE is calculated by dividing the net income by total equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net incomeEquity According to Gup et at, (2007), the ROE ratio is equal to the Return of Assets (ROA) ratio times the Leverage multiplier that shows the dollar amount of assets that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net IncomeEquity = Net IncomeTotal Assets x Total AssetsEquity Leverage multiplier shows the extent to which the b ank relies on debt financing. The higher the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= Total AssetsEquity The Return of Assets (ROA) measures the bank profits as a percent of its assets and also measures the ability of the firm to use the real financial resources of the bank to generate revenue. It is commonly used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing net income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into another equation: Net IncomeTotal Assets = RevenueTotal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the following: ROA=Asset Utilisation x Net Profit Margin The net margin ratio shows how much profit the bank makes for every $ 1. 00 it generates from the revenue. Generally, the higher the ratio, the better the net margin. In order to obtain more revenue, most banks will want to reduce the net income to achieve a hig her net margin ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the amount of income the bank generated for every dollar worth of the assets available. This shows the bank’s efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to increase the ROE, banks need to increase their credit risk; this can be done by providing more loans to customers and subsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis: * It is based on accounting numbers, which are basically not reliable. * it does not include the Cost of Capital. * Garbage in, garbage out. Assumptions of the DuPont method: * Accounting numbers are reliable. b. Dopont Model Analysis: i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010): Hong Leong Bank’s data: | 201 0| 2009| 2008| | RM’000| RM’000| RM’000| Revenue| | | | Interest income| 2,592,586| 2,937,002| 3,064,785| Non-interest income| 506,979| 511,537| 501,067| Total| 3,099,565| 3,448,539| 3,565,852| | | | | Operating costs| | | |Interest expense| 1,209,792| 1,579,883| 1,688,293| Non-interest expense| 831,139| 806,030| 786,194| Total| 2,040,931| 2,385,913| 2,474,487| | | | | Net profit| 767,817| 659,678| 838,874| Total assets| 77,730,208| 70,732,513| 69,992,756| Equity| 5,815,063| 5,319,288| 4,923,133| RHB Bank’s Data | 2010| | RM’000| Revenue| | Interest income| 4,530,637| Non-interest income| 722,818| Total| 5,253,455| Operating Cost| | Interest Expense| 1,811,153| Non-interest Expense| 1,302,007| Total| 3,113,160| | | Net profit| 1,294,437| Total assets| 105,179,231| Equity| 8,397,474| Dupont Model of Hong Leong Bank 2010| 2009| 2008| Return On Equity: Net incomeEquity| RM767,817,000RM5,815,063,000= 13. 20%| RM659,678,000RM5,319,288,000= 12. 40%| RM83 8,874,000RM4,923,133,000= 17. 04%| Leverage Multiplier:Total AssetsEquity| RM77,730,208,000RM5,815,063,000=13. 37times| RM70,732,513,000RM5,319,288,000= 13. 30times| RM69,992,756,000RM4,923,133,000= 14. 22times| Return On Assets:Net IncomeTotal Assets| RM767,817,000RM77,730,208,000= 0. 99%| RM659,678,000RM70,732,513,000= 0. 93%| RM838,874,000RM69,992,756,000= 1. 20%| Asset Utilization:RevenueTotal Assets| RM3,099,565,000RM77,730,208,000= 3. 9%| RM3,448,539,000RM70,732,513,000= 4. 88%| RM3,565,852,000RM69,992,756,000= 5. 10%| Net margin:Net incomerevenue| RM767,817,000RM3,099,565,000= 24. 77%| RM659,678,000RM3,448,539,000= 19. 13%| RM838,874,000RM3,565,852,000= 23. 53%| Dupont Model of RHB Bank | 2010| Return On Equity: Net incomeEquity| RM1,294,437,000RM8,397,474,000=15. 41%|Leverage Multiplier:Total AssetsEquity| RM105,179,231,000RM8,397,474,000=12. 53times| Return On Assets:Net IncomeTotal Assets| RM1,294,437,000RM105,179,231,000=1. 23%| Asset Utilization:RevenueTotal Assets| RM5, 253,455,000RM105,179,231,000=4. 9%| Net margin:Net incomerevenue| RM1,294,437,000RM5,253,455,000=24. 64%| c. Analysis and Discussion: Trend comparison of Hong Leong Bank Ratio| 2010| 2009| 2008| Net margin| 24. 77%| 19. 13%| 23. 53%| Asset utilisation| 3. 99%| 4. 88%| 5. 10%| Return on assets| 0. 99%| 0. 93%| 1. 20%| Leverage multiplier| 13. 37times| 13. 30times| 14. 22times| Return on equity| 13. 20%| 12. 40%| 17. 04%| Hong Leong Bank’s net margin is higher in year 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It means that operating costs are relatively lower in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong Bank in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that increased its profitability. Hong Leon g Bank’s asset utilisation is lower in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It decreased constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Bank’s return on assets is lower in year 2010 (0. 99%) compared to the year 2009 (0. 93%) and 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Bank’s leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and increased back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more risk in 2008 compared to year 2010. Hong Leong Bank’s return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and therefore the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio| Hong Leong Bank| RHB Bank| Net margin| 24. 77%| 24. 64%| Asset utilisation| 3. 99%| 4. 99%| Return on assets| 0. 99%| 1. 23%| Leverage multiplier| 13. 37times| 12. 53times| Return on equity| 13. 20%| 15. 41%| Hong Leong Bank’s net margin (24. 77%) is higher than RHB Bank’s (24. 64%). It means that RHB Bank’s operating costs are relatively hig her. RHB Bank’s operating costs are RM3,113,160,000 whereas Hong Leong Bank’s operating costs are RM2,040,931,000.Thus, RHB Bank’s operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Bank’s asset utilisation (4. 99%) is higher than Hong Leong Bank’s (3. 99%). This shows that RHB Bank used most effectively of its assets to generate more revenue than Hong Leong Bank. RHB Bank’s revenue is RM5,253,455,000 which is higher than Hong Leong Bank’s revenue which is RM3,099,565,000. Hong Leong Bank’s return on assets is 0. 99% which is slightly lower than RHB Bank’s return on assets which is 1. 23%.This can be implied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB B ank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Bank’s total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Bank’s leverage multiplier (13. 7times) is higher than RHB Bank’s (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more risk than RHB Bank. Hong Leong Bank’s return on equity is 13. 20% which is lower than RHB Bank’s 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and stay with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the overall financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Bank’s objectives and strategies are different from RHB Bank’s. Question 2: Hong Leong Bank’s data of 2010 Interest earning asset 1:| RM’000| Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held-to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093|Other assets| 2,014,821| Total| 60,213,779| | | Earning assets 2:| | Interest Income Assets:| | Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held -to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093| Other assets| 2,014,821| | | Non-Interest Income Assets:| | Investment in subsidiary companies (Note 31) earning dividend| 714,092| Investment in associated company (Note 31) earning dividend| 946,505| Total| 61,874,376| | |Interest sensitive assets 3:| | Cash and short-term funds| 13,421,408| Deposits and placements with banks and other financial institutions| 7,004,664| Available-for-sale securities| 681,619| Held-to-maturity securities| 1,705,674| Loans, advances and financing| 30,712,038| Total| 53,525,403| | | Interest bearing liabilities 4:| | Deposits from customers| 63,239,050| Deposits and placements of banks and other financial institutions| 3,791,129| Bills and acceptances payable| 285,366| Other liabilities| 3,890,295| Total| 71,205,840| | | Interest sensitive liabilities 5:| | Deposits from customers| 54,798,922|Deposits and placements of banks and other financial institutions| 3,784,376| Bil ls and acceptances payable| 25,453| Total| 58,608,751| | | | | Liquid assets 6:| | Cash and short-term funds| 13,928,247| Deposits and placements with banks and other financial institutions| 7,004,664| Loans, advances and financing (Note 8)| 9,057,329| Available for sales securities| 3859367| Total| 33,849,607| | | Deposits | 7,004,664| Shareholders’ fund = Total equity| 5,815,063| | | Net-write offs 7:| 202,219| NOTES: 1 Interest earning asset are assets that earns interest income. (Note 28 of pg113 of Hong. Leong Bank Annual Report 2010) Earning assets Income earning assets held by a bank typically include interest bearing balances, investment securities and loans. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual Report 2010) 3 Interest sensitive assets are the dollar value of assets that either mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay interest. 5 Interest sensitive liabilities are the dollar value of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, marketable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under agreement to resell, a liquid asset can be easily and quickly converted into cash with minimum loss. 7 Net Write Offs is the amount written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual Report 2010) NOTES: 8 Interest Sensitive Assets RM’000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM’000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 RHB Bank’s data of 2010 Interest Earning asset 1:| RM’000| Loans, advances and financ ing| 71,125,558| Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Earning assets 2:| | Loans, advances and financing| 71,125,558|Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Interest sensitive assets 1:| | Cash and short-term funds| 10,270,874| Securities under resale agreement| 276,398| Deposits and placements with banks and other financial institutions| 777,779| Financial investment available-for-sale | 1107052| Held-to-maturity securities| 3833825| Loans, advances and financing| 52741914| Total| 69,007,842| | | Interest bearing liabilities 4:| | Deposits and placements of banks and other financial institutions| 6,158,453| Deposits from customers| 80,567,577| Subordinated obligations| 3,018,157| Recourse obligation on loans sold to Cagamas Berhad| 818,503| Hybrid Tier I Capital Securities| 605,407| Long term borrowings| 819,362| Others liabilities| 868,165| Total | 92,855,624| Interest sensitive liabilities 2:| | Deposits from customers| 63,270,532| Deposits and placements of banks and other financial institutions| 5558376| Bills and acceptances payable| 2934533|Recourse obligation on loans sold to Cagamas Berhad| 147030| Long term borrowings| 817127| Total| 72,727,598| | | | | Liquid assets 3:| | Cash and short-term funds| 11093561| Securities purchased under resale agreements| 276,407| Deposits and placements with banks and other financial institutions| 782,462| Financial assets held-for-trading| 119,374| Financial investment available-for-sale| 1176035| Financial investment held-to-maturity| 3854749| Loans, advances and financing| 14124170| Other assets| 88835| Derivative assets| 190637| Total| 31,706,230| | | Deposits | 1,539,648|Shareholders’ fund = Total equity| 8,397,474| | | Net-write offs 7:| 1,033,573| NOTES: 1, 2, 3 – Please refer to appendix. | Hong Leong BankRM’000| RHB BankRM’000| Interest earning assets| 60,213,779| 89,357,638| Interest bearing liabilities| 71,205,840| 92,855,624| Earning Assets| 61,874,376| 89,357,638| Interest sensitive assets (RSA)| 53,525,403| 69,007,842| Interest sensitive liabilities (RSL)| 58,608,751| 72,727,598| Liquid assets | 33,849,607| 29,990,240| Shareholders’ fund| 5,815,063| 5,815,063| Net-write offs| 202,219| 1,033,573| Operating Income| 3,099,565| 5,253,455|Operating Expense| 2,040,931| 3113160| Other key indicators for the year ended 2010: Bank efficiency| Hong Leong Bank| RHB Bank| Efficiency ratio:Operating expenses Ope rating income| RM2,040,931,000RM3,099,565,000= 65. 85%| RM3,113,160,000RM5,253,455,000= 59. 26%| Cost to assets ratios:Operating expenses Total assets| RM2,040,931,000RM77,730,208,000= 2. 63%| RM3,113,160,000RM105,179,231,000= 2. 96%| Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Bank’s rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more efficient than RHB Bank. Interest differentials| Hong Leong Bank | RHB Bank|Net interest income:Interest earned -Interest expense| RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000| RM4,530,637,000-RM1,811,153,000= RM2,719,484,000| % of interest margin:interest earned – interest expenses Earning assets| RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23%| RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04%| %interest spread(interest earned/interest earning assets) – (interest expense/ interest bearing liabilities)| (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1%| (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12%| Net interest income refers the difference between revenue that is generated from the bank’s assets and expenses associated with paying out its liabilities. In the table above, RHB Bank’s net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after deducting interest paid on deposit from interest earned on assets.Percentage interest margin shows the dollar difference between interests earned and interest expense, as a percentage of earnings assets. Hong Leong Bank’s% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank due to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Bank’s % interest spread is 3. 12% which is higher than Hong Leong Bank’s 2. 23%. Risk management| Hong Leong Bank| RHB Bank|Interest rate riskinterest sensitive assets interest sensitive liabilities| RM53,525,403,000RM58,608,751,000= 0. 91| RM69,007,842,000RM72,727,598,000= 0. 95| Credit risk net write-offs total assets| RM202,219,000RM77,730,208,000= 0. 26%| RM1,033,573,000RM105,179,231,000= 0. 98%| Liquidity risk :liquid assets/total asset liquid assets/deposits| RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83| RM29,990,240,000/RM105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48| Capital risk :shareholders’ funds total assets| RM5,815,063,000RM77,730,208,000= 7. 48%| RM8,397,474,000RM105,179,231,000= 7. 8%| Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the bank’s assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than replacing the low cost deposits with more funds compared to RHB. Credit risk refers to risk of loss of principal due to the borrower’s failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is used to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The capital risk ratio is used to calculate the capital risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a value of 7. 48%. This implies that RHB is well protected against any operating losses incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3: Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing-Housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other term oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual impairment allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing:- specific- generalTotal net loans, advances and financing| RHB Bank (RM’000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)—-71123,9 89| Hong Leong Bank (RM’000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714—(306,807)(471,305)30,938,086|Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its payment obligations to the Bank, which leads to a loss of revenue and the principal amount. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). Based on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is b etter in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, but it’s credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better in managing its credit risk and loan portfolio because most borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk quality. In order for the bank to increase and strengthen the risk management practices, RHB Bank ensures to maintain the credit quality of its loan portfolios, improve cost effectiveness, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the Board of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high-experience personal with high level re view undertaken by the Management Credit Committee under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is similar to RHB Bank whereby credit risk framework that is compliant with Bank Negara Malaysia’s guidelines on ‘‘Best Practices for the Management of Credit Risk†.The Group Risk Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the committees of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, operational risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and fin ancing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are guided by the Group’s Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, issued by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk system for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit application and behavioural scoring system in order to improve the Bank’s ability to control credit losses within predictive ranges and achieve a well balanced portfolio.This is accordance to the Basel II that RHB Bank is also practising whereby every bank requires to hold adequa te capital in order to fulfil the minimum capital adequacy of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required so that most banks will know how much capital they must hold. The Bank’s credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Bank’s risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual but they form a second line defence that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in accordance with the credit standards and the lending policies and directives established and approved by the Bank’s management and Board of Directors. Question 4: Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create m uch value to the shareholders due to low ROE. However, only the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good indicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and current assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic boom and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic activity of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit ana lysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of visiting banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch manager of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was kind enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items calling interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang Branch have 400 to 500 customers daily and they are overcrowded during lunch hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB Bank:Ampang Branch Cheras Branch Part B: Virtual Bank Balance Sheet |   |   | |   |   |   | | Liabilities| |   | | Asset| | 1. Deposit| | |   | 1. Gold and foreign exchange| i. Current deposit | |   | 2. Cash and Liquid Assets| | ii. Fixed deposit| |   | 3. Securities| | iii. Certificates of deposit|   | i. Trading securities | | iv. Other deposits such as call deposits, cash| ii. Investment securities | | management accounts and savings account| iii. Short term discount security| 2. Non-deposit liabilities| |   | iv. Long term bonds or notes| Liabilities due to clearing houses and financial| 4.Loans and advances| | institutions and rank in priority after deposit| i. Overdraft | | i. Repurchase agreements|   | ii. Credit card outstanding| ii. Promissory notes| |   | iii. Housing finance | | iii. Liabilities on bill acceptances|   | iv. Other term loans| | iv. Corporate bonds and other long-term borrowings| v. Lease and hire purchase finance | 3. Due to other banks| |   | 5. Due from other banks| | 4. Trading derivatives| |   | 6. Trading derivatives| | 5. Other financial liabilities at fair value| 7. Other financial assets at fair value| 6. Other borrowings| |   | 8. All other asset| | 7. Bonds, notes, and subordinated debt| 9.Due from customer on acceptance | 8. Other debt issues| |   | | | | 9. All other liabilities| |   | | | | 10. Goodwill and other intangible asset| | | | | | |   | | | | | | |   | | | | | Capital| |   | | | | Capital acts as a buffer against unexpected losses and| | | | protects against insolvency. |   | | | | i. Debt capital : borrowed funds|   | | | | ii. Equity capital : shareholders' fund| | | | NOTES : Asset 1. Changes in this item reflec t transactions of the following kinds: a. the Bank's transactions in foreign exchange and foreign securities (including under repurchase agreements); b. earnings on foreign currency investments; and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Bank's holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading securities : banks plans to sell before maturity ii. Investment securities : banks plan to hold till maturity iii. Short term discount securities : pay face value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the face value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognised at fair value and subsequently measured at amortised cost. Advances: non-der ivative financial assets with fixed payments that are not quoted in an active market i. Overdraft : – borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount| ii. Credit card outstanding: – borrower can purchase on credit| or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be charged | | | | iii.Housing finance : – Mortgage where the collateral is real estate – loan application fees are charged – variable rates(up to 30 years) – fixed rates(3-5 years)| iv. Other term loans : – example such as fully drawn advance – maturity of 5-8 years – a single loan of a specific dollar amount – fixed interest rate – application fees, establishment fees – repayment maybe fully amortised or structured to match the profits Generated by project being finance. | v.Lease and hire purchase finance : – se cured loans where the collateral is an asset – term of loan related to the life of the collateral – fixed interest rate – application fees, establishment fees| | | 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. example: land, buildings 8.Due from customer on acceptance : customer who wants to borrow from the bank may be offered a â€Å"bill facility† and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities: Deposit: 1. Current deposit : – No maturity and no minimum balance – Withdrawals by writing a cheque or through electronic transactions – May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit : – Minimum amount – Specific term eg. 1-5 years – Early withdrawals incur a penalty – Fixed interest rate 3. Certificates of deposit : – Face value at least $100,000 – Maturities between 14-270 days – Fixed interest rate – Originally issued at par but may trade above or below depending on Market yields. At maturity, receives face value plus interest 4. The deposits : a) Call deposit – must give notice of withdrawal, variable interest rate b) cash management accounts – minimum balance requirement, variable interest rate linked to money market yields c) savings account – no minimum balance or notice of withdrawal requirements – variable interest rate Non-Deposit: i. Repurchase agreements : – banks borrow for a short period (5 years) – sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes : – discount securities – bank sells to the market iii. Liabilities on bill acceptance : -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings : example domestic bonds, eurobonds Due to Other Banks: Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives: Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term. | Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example: borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value: Short term and long-term debt issues of the group including commercial paper, notes, term loans, medi um-term notes, mortgage backed securities and other discrete debt issues. All other liabilities: I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, etc) II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such a s unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible asset:Goodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Group’s share of the identifiable net assets at the date of the acquisition. Capital Debt capital : borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital : -shareholders’ fund which represents the remaining interest in assets of a company. -permanent commitment of funds -earns the residual income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report: 2010. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report: 2010. Retrieved September 12, 2011 from http://www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , ;amp; Kolari, J. W. (2007). Commercial Banking. Milton, Qld: John Willey ;amp; Sons Hassan, H. , ;amp; Mohammed, F. (2007). Banks’ risk management: a comparison study of UAE national and foreign banks. The Journal of Risk ;amp; Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report: 2009. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar20091. pdf Milbourn, G. , ;amp; Haight, T. (2005).Providing Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables ;amp; Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http://www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http://www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

Chemotherapeutic Agents of Control

Chemotherapeutic Agents of Control: Introduction: Chemotherapeutic agents are chemical substances used to treat various forms of infectious diseases. The chemotherapeutic agent works by stopping the bacteria from reproducing. There are two different kinds of chemotherapeutic agents. The first kind is an antibiotic, which slow down the growth of microorganisms. The second kind of chemotherapeutic agent is synthetic drugs. Synthetic drugs are artificially made in a laboratory. Chemotherapy began in the 1940s and is now a multi-billion dollar industry.Different antibiotics and synthetic drugs all have different modes of actions and can have several different possibilities of side effects. Antibiotics work by finding something in the pathogen that is different in the host cell and attacks it to stop the pathogen from reproducing and causing more harm. The side effects can range from loss of hearing all the way to discoloration of the teeth. Some may take these drugs and have no side effe cts at all except to obtain better health. While others may no receive any good from the medication and have horrible side effects.The mode of action also has a wide range of possibilities depending on which drug is taken. The mode of action can range from inhibition of the cell wall all the way to destruction of the cell membrane and much more. Each and every chemotherapeutic agent varies with their antimicrobial activity. This is needed because every disease is very different. Purpose: The purpose of this experiment is to determine that different chemotherapeutic agents are needed to treat different kinds of diseases.Since there is a wide range of possibilities this experiment is needed to determine which medication is best for certain types of microbial metabolism. This way we can evaluate the antimicrobial’s reaction to different chemotherapeutic agents. What reaction will the antimicrobial have on the chemotherapeutic agents that will be used in this experiment? Hypothes is: All chemotherapeutic agents will affect the antimicrobial, although one chemotherapeutic agent will be much more effective than the other chemotherapeutic agents.Expectations: I expect one chemotherapeutic agent to be much more effective on this certain culture. This will be the best chemotherapeutic agent to treat this certain antimicrobial disease. Materials: Petri dish Sterile cotton swabs Culture (Escherichia coli, Serratia marcescens, Bacillus subtilis, Enterobacter cloacal, Staph epidermidis) Antibiotics (Streptomyocin, SSS, Erythromycin, Chloram Phemicol, Kamamycin, Novobiocin, Textra Cycline, Penicillin) Sharpie Bunsen burner Forceps Millimeter ruler

Utilitarian Conservation or Preservation Movement Essay

Utilitarian Conservation or Preservation Movement - Essay Example Key among such scholars is Rachel Carson who in her book Silent Spring explores the possible ways of safeguarding the future of biodiversity in the country. Key among her fundamental suggestions is utilitarian conservation, which she explains has the potential of saving the country’s biodiversity future as the discussion below portrays. In the book, Carson argues the human activities continue to threaten the future of wild animals. She studies the detrimental effects that pesticides have on birds thereby arguing that the continued use of such powerful biocides threatens the future of birds in the world. Birds are among the most varied animals in the world. Their large number and diversity in species makes documenting them difficult. Despite such, the continued use of pesticides on farms as humans continue to invent new ways of protecting their crops in the fields is among the leading threats globally to the future of numerous species of birds. A fundamental argument she makes in the book is that the pests continue to mutate thereby becoming resistant to the pesticides. This will therefore create a unique scenario where the pesticides kill all the birds while such diseases as malaria continue to persist thereby causing deaths to humans. She therefore suggests other appropriate ways of coexisting between humans and w ild animals in a manner that limits the conflicts arising from such relationships. Wildlife is important aspects of the ecosystem. Wildlife enhances the stability of the ecosystem and the elimination of any species of wildlife will have diverse effects on the environment. Among the factors that enhance the conflict just as stated earlier is overpopulation. This compels humans to rehabilitated areas previously occupied by the wild animals. Among the immediate ramifications of such is the restructuring of the environment, which causes numerous

Aristotles' slavery Essay Example | Topics and Well Written Essays - 3750 words

Aristotles' slavery - Essay Example The bodily parts such as arm, leg, hand, and eye that he uses in the service of all even if it is the hand he raises to deflect a blow from the master. Aristotle assumes all of this, even though it renders his logic impossible. The slave at such a moment is not defying the master by defending himself against a blow. He is certainly asserting himself as his own most not so asserting himself; he is not acting as the mere part, nothing but the master’s possession (Swanson 16). Hence, the question of vantage, a question that one is familiar in literary analysis. Aristotle makes his point concerning the status of the slave by simply eliding his point of view. This text informed every bit as much by what appears in it as what does not. Then there is the question of the status of an analogy; this is primarily a literary device. The leg is a part that serves the organism, and the qua organism is the higher value. This last is a point Aristotle establishes by analogy. The context for the analogy is the value that belongs to the city. He says, â€Å"The notion of a city naturally precedes that of a family or an individual, for the whole must necessarily be prior to the parts, for if you take away the whole man, you cannot say a foot or a hand remains†. There is a moment of indeterminacy here. If Aristotle’s entire argument in the analogy is only that the part is taken away with the whole. This gives the ostensible rigor of proper philosophic discourse of the analogy disposal (Wrenhaven 35). For Aristotle, when society or the family is taken away, so is the individual, and the hand is an individual part of the body but he also suggest that the relationship is analogous in other ways. The human body is in the city and interests of the city and its use involve his sacrifice. Such a sacrifice makes the highest value for the individual. As such, the individual may be put to use if rational individual has reason to know that the collectivity is the

Criminal Justice 1 Essay Example | Topics and Well Written Essays - 500 words - 1

Criminal Justice 1 - Essay Example A delicate balancing act of this high speed pursuit is necessary because a lot is usually at stake. On one hand is the police wanting to prevent fleeing criminals from the authority and from facing their criminal charges and on the other hand is the fact that these high speed chases put many individuals at risk as mentioned earlier (Stevens, 2011). Police teach people to be law abiding and face up to their crimes but not flee from the law. This therefore necessitates them to engage fleeing criminals in high speed vehicular pursuits. Failure to engage them may lead to other fleeing criminals following suit and fleeing in high speed after committing crimes because they know the police will not pursue them. This will decrease the apprehension rate while at the same time encouraging more criminal activities that end up in the criminals fleeing at high speed from the crime scene and maybe even from the country. The other balance needed is to ensure that innocent citizens that are caught up in this vehicular pursuit are not in any way harmed. This also includes ensuring safety measures for those police officers involved directly in the high speed pursuit. Some of the measures the police have to put are preventative by educating the public about the potential risks of being caught up in such a pursuit and what they are expected to do immediately they realize that such a pursuit is ongoing. This may however not prove to be easy because most people do not realize about the high-speed chase until it is too late for them to prevent accidents and even shoot-outs from the criminals or the police. Some people also do not seem to think that this involves them or is their problem in any way and hence put themselves and others at risk (Peak, 2012). The cost of the pursuit is also an issue of debate in the balancing act. The costs involved include the traffic that will snarl up as a result of the chase and

Elements of Design in Hectors Final Battle Research Paper - 3

Elements of Design in Hectors Final Battle - Research Paper Example The production designer is the one in charge of the overall look of the film. Production designers have to closely coordinate with the director and the producer (in terms of budget constraints) in order to select the most appropriate settings and style that would enable the film to tell the story (Goodykoontz & Jacobs, 2011). Especially during pre-production, the production designer works closely with the film director to establish the particular aesthetic needs and the intended visual feel of the film. The production designer likewise works closely with the costume designer, the hair and make-up stylists, the special effects director, and the location manager to ensure the unified visual appearance of the movie. The role of the art director tends to blur with the responsibilities of the production designer. However, the art director’s main goal is to unify the overall visual appearance of the scenes in the film, making sure that these scenes are able to stimulate moods, contrast features, and appeal to the target audience psychologically (Goodykoontz & Jacobs, 2011). In the particular movie clip chose, the scene took place on an arid desert, presumably under the burning heat of the sun and the lighting used in this scene made the audience feel the â€Å"heat of the battle† even more. Thus, the sharp light of the sun conveyed feelings of passion and sheer hatred, which were the very feelings that Achilles felt at that moment, owing to the untimely death of his cousin. This particular setting likewise conveys the burning emotions in the hearts of the characters, from the anger in Achilles, to Hector’s desire to defend his honor, and even the pain felt by Hector’s family as they watch Hector walk into his death. All these aspects convey the message of the movie in terms of passion and honor. As the scene takes place in Ancient Greece, the costume designers no doubt took extra care and effort to make the characters’ costume as authentic as possible. Hector’s armor clad body signifies that he is a methodical fighter who takes great efforts to ensure that he is well protected in battle.

Personal Development Planning Coursework Example | Topics and Well Written Essays - 1500 words

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Economic reports Essay Example | Topics and Well Written Essays - 1000 words

Economic reports - Essay Example According to Kroenig (2015), while exploring the subject, argues that in 2021, China will have overtaken the United States as the world’s largest economy. What is more intriguing is the proposition that the military power which is another important factor when it comes to the issue world supremacy, will follow the economic heft. China will therefore be the strongest country both in terms of military and economy. China boasts having the most spoken language on earth. This has been used to create cohesion and encourage economic growth. However, the author uses a different approach to address the subject by focusing on the domestic political institutions. According to Machiavelli, cities expand when everyone stops focusing on the particular good of the activities that are being undertaken. Therefore, the notion that the governments that have representative forms of rule are the ones that can steer fast growth is misguided. The idea of Machiavelli can only be achieved in republic s such as China. The idea of China’s rapid economic growth has also been boosted by the view of social scientists who claim that autocracies do not experience smooth economic runs compared to democracies. On top of that, democracies are in a position to access international capital markets and also form strong and reliable alliances that are key in boosting the economy. Therefore basing the argument on that, it is true to say that China has had a smooth economic growth and considering that other super powers seem to have exploited all their efforts and stagnated, it could be the next super power. Democracies are also known to enjoy a built in advantage when it comes to the struggle for global mastery. On a head to head analysis between China and the already stable economies such as the UK and US, one can note that at the time when the latter enjoyed a smooth economic growth, they were experiencing or were having great democracies. A

Social Questions and Answers Essay Example | Topics and Well Written Essays - 250 words - 1

Social Questions and Answers - Essay Example From this paper it i clear that the U.S. society would collapse due to the different cultures mixed together. Marx felt the Capitalism would fall a long time ago. Weber would feel that because the United States has differing opinions that it would fall, as would Durkheim. What each individual did not take into account was the American system is not rigid. It is flexible to change, so if something does not work the citizens can change it. The American culture grows and reinvents itself everyday. That is why it has lasted so long.This study outlines that Marx had a Conflict Theory. He believed that the workers would turn on the richer class in the capitalist society. Marx thought the poor people would revolt against the rich people. What he did not take into account is everybody has a fair chance to become rich, so the poor does not focus on the rich, but how to get rich. Durkheim used Functionalism. He believed that a society was a single essence. The society was driven on differences and similarities. The society can be more than just a single part, but the single parts make up the whole. Once again Durkheim thought America would collapse upon itself because of too many different parts. That is what makes it work though. Max Weber had the Interpretive Theory. He believed societies worked through intentional and unintentional actions. Weber thought that the interaction in America had too much conflict.

Overfishing and it Effects to the Environment Essay Example for Free

Overfishing and it Effects to the Environment Essay For the last 10 years, the world had been aware of the various changes which had been occurring within our environment. It is known to us that the actions which our ancestors had done in the past have now caused us many problems such as global disasters that could truly ruin the future of the next generation. In the event of the problem of climate change (Millennium Ecosystem Assessment, 2005), various things had come up such as pollution of the air and various water resources. Due to this, different aspect of the environment is deeply affected and sometimes devastated because of the scenarios present. For many people who live in a place where in fishing is their main industry, it is immediately declared that their primary source of income is directly affected by the harsh conditions of the changing weather brought by climate change. Although it is true the climate change is affecting the waters which is one of the main source of our resources, it could not be hidden that the individuals who are directly involved in the industry are also to be blamed to the catastrophe in the water industry. In the waters, one of the main problems which are faced by the industries is the lessening of the fishes in the see. One of the main culprits of this issue is the over fishing of various fishermen who are connected to the huge companies. Over fishing had been a main concern for various non-governmental organizations such that of the Green Peace. It was said by the respectful environmental group that â€Å"over-exploitation and mismanagement of fisheries has already led to some spectacular fisheries collapses. The cod fishery off Newfoundland, Canada collapsed in 1992, leading to the loss of some 40,000 jobs in the industry. The cod stocks in the North Sea and Baltic Sea are now heading the same way and are close to complete collapse† (Green Peace, 2008). Even before human beings have discovered new technologies, it is known that fishes are the main source of food for many. Based on various historical books such as the Bible, fish was the main commodity for the people in order for them to eat. As years gone by, more and more people are inclined to get more fish in order for them to gain income to provide their families. Various innovations and technological advancements were also used to increase the number of catch due to the increasing number of demand for fish. Based on the studies made by the Green Peace and their team of scientists it was stated that overfishing truly is causing a grave danger for the marine life and diversity of our oceans. Most of the fishermen who have the capacity to catch enough fish are those that utilize nets which are not suited to legally catch fish. Many of the fishermen use nets which has smaller holes which do not allow the smaller fishes to escape. This type of scenario happens most of the time, therefore the young fishes were not given a chance to grow and be mature enough to be caught. Through the Young Peoples Trust for the Environment, types of events happen due to commercial fishing. There are various techniques that are done by fishermen in order for them to capture various kinds of fishes. There are fishes which are called â€Å"pelagic† meaning they live within the upper parts of the water making them the most accessible fishes to be caught by fishing nets which are connected to the gigantic ships that fishermen use. It is stated that, â€Å"net suspended from floats is stretched between two boats so that fish swim into it. Fish are unable to swim backwards, so once they are caught in the net, there is no escape unless they are small enough to fit through the net’s mesh† (Young People’s Trust for the Environment, 2008). Other fishes that are in the deeper level of the sea are caught differently. There is also a big net placed under the boat which then gets everything that it captures along the way. The marine resources that I catch were not only fish but also the coral reefs, the schools and other organisms which are not supposed to be captured during the act of fishing. Such action is not only disastrous for the young fishes but also the organisms within the environment because they are also being displaced and even killed when there are commercial ships around. (n. p. ) In order to mitigate the problem of over fishing different agencies have created ways in order for them to fully destabilize the problem which is being caused by over fishing. One of the main agencies are the United Nations in which launched various types of programs and amendments to protect the marine resources all over the world as well as protect the marine resources that our world currently have. In 1995, an article was written about the treaty in which was proposed under the United Nations which addresses the problem in over fishing. It states that the treaty should be approved by 185 countries which then be ratified by 30 countries in order for the treaty to be fully taken into place. In addition, another program which had been under the United Nations is the United Nations Fish Stocks Agreement (Government of Canada, 2006). However, Green Peace and World Wildlife Fund had expressed that this treaty would not directly answer the problems of over fishing. In fact, Matthew Gianni had stated that there is a great possibility that yearly there will be new innovations of boats which will be able to detect fish which then result to much more damage to our marine resources (Crossette, 1995). With such article, it directly states that these international organizations does not trust that a plain agreement with various countries thus they suggests more than just an agreement but a full arrangement and limitation of the types of vessels which should be reasonable to be able to catch enough fish. In addition, fishes which will be caught will be enough in size and maturity which will then leave the small fishes to be fully grown and create another generation of fishes. The World Wildlife Fund have done their own actions in order for help create a sustainable fishing for the future generation. They have noted various types of steps in which they called: Fisheries Partnership Agreements which listed these various general actions to fully attain sustainable fishing: †¢ respect sustainable fishing levels account for environmental costs †¢ protect local fishers †¢ include compliance with flag state laws †¢ are based on best practice fisheries management †¢ include cooperation on research and monitoring †¢ ensure adequate monitoring and enforcement capacity †¢ ensure fairer sharing of economic benefits between producer and extractor nations (World Wildlife Fund, 2008) In conclusion, many of our world’s resources had now been gone and are still being abused by various types of industries due to the demand of resources the global economy has. But then, we should remember that we must learn how to conserve our natural resources so that there would not be scarce resources for the future. Like the World Wildlife Fund and the Green Peace have stated, it is not enough the there will be treaties and agreements under these types of issues. It is still important that the mitigation process should be continuously checked in order to incur changes for the environment, the amount of resources as well as to secure the lives of the future generation. The continuous efforts of the international community, through the help of various countries as well as the international organization will lead to a prosperous and much more peaceful fellowship with one another. On the other hand, the issue of climate change must also be resolved for the reason that it also affects the issue regarding overfishing and lessening of the resources available for various marine industries. Although there are issues like this, it should be taken into mind that the responsibility is not only through organizations but also through an individualistic perspective.

Women in Business and Emloyment

Women in Business and Emloyment Presentation Women are turning into an unmistakable segment of the workforce. Women now make up 43 percent of the administrative, managerial, and official positions in the U.S. This may sound amazing, however tragically, a large portion of those occupations are just in lower level administration. Females  make up just three to seven percent of senior administration (VP and higher). There is still an incredible imbalance in corporate America. Antiquated perspectives are the primary concern keeping Women down. Numerous things originate from those antiquated perspectives including seeing Women as substandard, inappropriate behavior, and esteemed gentlemen issue. Women are battling these issues, be that as it may, and are increasing effective positions accordingly. This report will cover Women in administrative and official positions, what is keeping Women down, Women helping Women succeed, and Women who have become showbiz royalty.   In the past, females were just permitted to remain at home and deal with the children. It is not up to this point Women were permitted to enter the workforce, and considerably more as of late that they were permitted the opportunity to increase administrative or official positions. Albeit as indicated by U.S branch of Labor, Bureau of Statistics Women make up 43 percent of the administrative, managerial, and official positions in the U.S. The greater part of that rate, in any case, is comprised of lower level administration. Just three to five percent of official positions have a place with Women. That implies that 95 to 97 percent of every single senior supervisor (VP and higher) are men. For the most part white men to be exact. The numbers are even lower when you get the chance to significantly greater organizations. A 1990 investigation of the top Fortune 500 organizations by Mary Ann Von Glinow of the University of Southern California, demonstrated that Women were just 2.6% of th e corporate officers (the bad habit presidential level up) of those organizations. That is what is known as the unattainable rank. Women have an imperceptible obstruction that endeavors to keep them from ascending to an official level. Considerably more unfortunately, a great number of the official Women are there on the grounds that they began the organization, and substantially more since it is a lady claimed organization. There is still an esteemed gentleman state of mind that wins at the larger amounts of business. It is a state of mind that is far reaching in corporate America, which is that white folks are the best possibility for abnormal state occupations. There are numerous keen Women who are ignored, come up short on, and pushed aside for white men with less qualifications. Women get came up short on even at the official level, a May 1987 report by Nations Business demonstrated that Women at the bad habit presidential levels or more acquire 42 percent not as much as their male associates. That is a tremendous contrast in pay. An illustration could be that if a female made $300,000 a year, a male partne r doing the very same employment would make about $450,000. Women on Corporate Boards Corporate sheets are tragically comparable in their numbers. Just 4.5 percent of the Fortune 500 modern directorships are held by Women. On Fortune Service 500 organizations, just 5.6 percent of corporate executives are Women. Women are gaining more ground in this field than in the official officer field, be that as it may. Albeit not very many organizations have Women as a board executive, a recent report by the Glass Ceiling Commission demonstrates that 60 percent of Fortune 500 organizations had Women on their board. Women Owned Companies Many Women are beginning their own organizations. These arent infant organizations either. Extensive economy-shaking organizations such are E-cove are established by Women. This is one of the greatest figures changing the way Women are seen in the workforce. By and large, Women claimed organizations employ a significantly more proportionate number of Women and minorities than do their male partners (see figure 1). While Women tend to contract half guys and half females, men tend to procure just a third Women and the rest men. Men by and large lean toward a two to one proportion of men to Women. As mens organizations go up in esteem, they employ a littler and littler rate of Women. Figure 1] Whats Holding Women Back Old Fashioned Views against Women the primary things keeping Women down are out-dated perspectives about Women. Women have generally been maids and moms, remaining at home and taking requests from men. Women are raised to be small, easygoing, and never forceful. They are i nstructed not to raise their voices, be too immediate, too forward, or contend. They are particularly instructed not to act along these lines around guys. This thought remains imbued in the U.S. culture and makes it extremely hard to battle segregation. The court frameworks are still permitted to consider how a lady dresses in sexual separation cases, saying that on the off chance that they dress or act absolutely they are asking for licentious remarks and the culpable male was not out of line. With laws like that, it is no big surprise it is so difficult for Women to get equivalent treatment. Esteemed gentlemen This all ties into esteemed gentlemen thought that keeps Women down. Esteemed gentlemen are contained white male administrators who need to keep upper official America made up of just white guys. They consider Women who are solid to be feminazis or bitches. A solid man, then again, is thought to be resolved, persevering, and incredible upper administration material. These me n need to advance different guys which they have buddied up inside after-work exercises which Women are frequently prohibited from. Women officials are much of the time avoided from social exercises and frequently depict the clubbiness among the men that exists at the top. The corporate official suites are a definitive young mens clubs. Even on a more formal level, Women report there are certain sorts of gatherings they dont get welcomed to in light of the fact that they are not seen as approach creators. When looking at men and Women at a similar level, men by and large oversee more individuals, have more noteworthy flexibility to contract and fire individuals, and have more straightforward control over the organizations advantages. At the point when avoided from gatherings and not given as much power, it is much simpler to not recognize the ability and knowledge of these Women. Obviously, it as of now had been ignored or they would not be dealt with like that in any case. Women, Their Families, and the Real Problem Another view that keeps Women down is once they have youngsters they will turn out to be less dep endable and less committed to the organization. This thought is not valid and is yet another jerk see forced by men. In a Wall Street Journal/Gallup overview, Women administrators were requested that what they consider be the most genuine obstruction in their business professions. Just three percent said family duties, yet half named reasons identified with their sexual orientation, including male pettiness, dispositions toward a female supervisor, moderate headway for Women, and the basic truth of being a lady. In a review by Korn/Ferry International, official Women were made a request to name the best obstruction they needed to overcome to make progress; the most continuous reaction was basically being a lady (40 percent). More than 80 percent of the official Women in the Wall Street Journal/Gallup contemplate said they accept there are detriments to being a lady in the business world. They say that men dont consider them important. In a similar overview, 61 percent of the Women administrators revealed having been mixed up for a secretary at a conference and 25 percent said they had been disappoi nted on their way up the professional bureaucracy by male states of mind toward Women. Women Careers Women still have many generalizations to manage. They have employments that they are gathered to be in, for example, secretaries, medical attendants, and authoritative support. Ninety-nine percent of secretaries are Women, 93 percent of medical caretakers are Women, and 82 percent of regulatory/administrative bolster laborers are Women. Women are likewise the dominant part of material specialists (91 percent) and servants (82 percent). Women make up a greater part of these positions, however the quantities of official positions remain low. Women are likewise still paid not as much as men for a similar work. Full-time utilized Women still win impressively not as much as men. The normal man with a secondary school training working all day wins more than the normal lady all day laborer with a professional education. One reason Women experience serious difficulties to the top is the kind of occupations they are urged to go into. They are packed in regions that are generally staff and bol ster occupations, which dont have much chance to ascend to the top. Women are frequently excluded in the standard line employments. Notwithstanding when they get sufficiently fortunate to land a line position (which is the most well-known course to make it to a high official position) they are frequently the line employments which dont stamp them as pioneers or as profitable individuals from the organization. The most elevated positioning Women in many businesses are in non-working territories, for example, faculty, advertising, or, periodically, fund claims to fame that rarely prompt to the most intense top-administration positions. As specified some time recently, Women are significantly more liable to enlist an equivalent number of guys to females. Women business officials additionally overwhelmingly bolster womens activist positions. Women officials are giving a great deal of support to Women in lower positions. They are attempting to measure up to out the playing field. Sixty-three percent of the Women officials in the Korn/Ferry review trust that obstructions to Women have not fallen at the senior administration level, and 70 percent trust that Women dont get equivalent pay for tantamount occupations. In a Wall Street Journal/Gallup survey, more than four out of five Women administrators say there are weaknesses to being female in the business world. It is still an extremely out of line climate for Women. Women in high places, in any case, are attempting to roll out this improvement

Free Glass Menagerie Essays: Relationship Between Jim and Laura :: Glass Menagerie essays

Glass Menagerie: Relationship Between Jim and Laura In high school, Jim was basically your all around nice guy. He was friendly to everyone, and an example of this is that he called Laura "Blue Roses". He was being friendly when he nicknamed her that, but otherwise they didn't really talk to each other. That was basically under the only circumstances that they actually talked. The only reason that Jim asked Laura what was the matter in the first place, was because she was out of school for a long time and he was just a little concerned like anyone that is your all around nice and friendly type of person would do. Jim was confident about himself all throughout high school. Laura was not. Evidence to prove Jim's confidentiality in himself is when Tom is telling us about Jim, "He seemed to move in the continual spotlight...He was always running or bounding, never just walking."(pg.61) Evidence from the text to prove Laura wasn't very confident in herself, is when she says, "Yes, it was so hard for me, getting upstairs. I had that brace on my leg - it clumped so loud!...I had to go clumping all the way up the aisle with everyone watching!"(pg.94) Jim was always in the company of others. Evidence of this is, "He seemed to move in a continual spotlight. He was a star in basketball, captain of the debating club, president of the senior class and the glee club and he sang the male lead in the annual light operas."(pg.61) Laura was the exact opposite of him. She was a bit of a wallflower. She did not like being around other people because she thought that they were mocking her, so this is why she tried to just blend in with the crowd. Jim had fond memories of his time in high school. As Tom would say, "He was a star in basketball, captain of the debating club, president of the senior class and the glee club and he sang the male lead in the annual light operas."(pg.61) This is the memories that Jim has from high school. Laura, on the other hand, has only one fond memory of high school, and that memory is Jim. She remembers Jim as this perfect guy that everyone liked. And she liked him too, just because he took the time to give her a pet name and inquire about her health.

Veronica - Why Doesnt Veronica Leave For The City? Essay -- essays res

The city is an elegant place to live. It calls to the people from the inferior village life. The well led life followed by the city people offers many opportunities compared to the hopelessness of village surroundings. It offers hope, the chance to be independent, the chance of a job. In the story Veronica by Adewale Maja-Pearce, Okekà © the ever lasting friend of Veronica is drawn by the attraction of the city for the opportunities he sees for himself. Veronica on the other hand does not desire to leave their decomposing village for the city. She decides this for a number of reasons. One of the reasons why Veronica decides not to go to the city is due to her lack of education. She feels that the city has nothing to offer her and her place is the village. She says, 'What will I do when I get there, I have no qualifications not even a standard six' She is aware that she needs qualifications to succeed in the city and without them, she sees no point in going. Another reason associated with this is to do with Veronica's expectations. If Veronica's expectations were not so low, she may have gone to the city with Okekà ©. Veronica says, 'They are my family that is enough' This line is an example of Veronica's low expectations. She feels her family is enough and she needs nothing else. Another example of Veronicas low expectations is when Okekà © comes back after ten years to find Veronica with a child a husband. Another example is, 'God has blessed us with a son. Is that not e...

The French and English Revolutions :: European Europe History

The French and English Revolutions THE FRENCH REVOLUTION The French Revolution was effected and caused by many things and people. Some people that had to do with the French Revolution were, Louis XVI, and, Marie Antoinette. Marie played an active role in the Revolution but suffered for her royalist sympathies. King Louis XVI also played an important role in the Revolution, seeing as how he was the king and all. When Louis XVI came to be King, he inherited a France in debt, and he was left with no choice but to raise taxes even though they were already high enough. This had made the people of France very angry. Paris had become furious and chose to make a big scene. This was also one of the causes of the French Revolution. Some believe that the MAIN reason for the Revolution was all based on, Louis, being too young and inexperienced to run an ENTIRE country by himself. He was only when he got married to Marie and he was only 20 when he officially became king of France. As the people of France grew more and more angry with Louis, it had started removing French Officials, such as, Tax collectors, and changing all of the kings appointed men to intendants. Pretty soon there were oaths and things for Louis to sign everywhere. Oaths such as the "Tennis Court Oath", and the "Declaration of the Rights of Man and the Citizen", and the "Constitution of 1791." Two effects of the Revolution were, change the voting by head, giving the third estate an advantage because they had as many people as the first and second estates, and the beheading of King Louis XVI. This section has shown how the French Revolution was effected and caused by many things and people. THE ENGLISH REVOLUTION The English revolution was also effected by many people and things, just like the French Revolution. Some people having to do with the Revolution were King Charles II, and King James II. Charles and James both were kings of England for their own share of time, influencing the country and its motives. After a short bit, Charles died unexpectedly from natural causes at the age of 55. Then James, brother of Charles, became King. This was a reason for the Revolution in some people's eyes. The change of Charles to James was a stutter in the economy. It caused a major uproar, not against James, but just a lot of commotion and talk amongst the people.

Abraham Lincoln – Short Essay

In 1828, Andrew Jackson was elected for president because he was a common, well-known man who was involved in the world and has acted profoundly throughout the years. In 1829 Andre Jackson became the seventh president of the United States until his term ended in 1837. During his presidency, President Andrew Jackson had several accomplishments. To begin with, Jackson was the first to introduce the Spoils System to the national government. This gave him a chance to fire everyone in congress and just hire anybody that supported him to give the presidents more power and favor. Many disagreed with this system but he did it anyway. Jackson vetoed more bills in his presidency than all the presidents put together. He was the first to use pocket veto and used the power extensively. While in office Jackson defied the Supreme Court leaving everyone confused. In the Worcester Vs. Georgia in 1832 the supreme court ruled for Georgia. President Andrew Jackson defied the decision that the court made and ordered a removal. He was against the court and he vetoed their decision in a blink of an eye. Jackson was a man with various opinion and he also took a stand in what he believed in. The Second bank of the United States was full of fraud and corruption and President Jackson wanted it to end as soon as possible because of that. It did indeed end and Jackson was considered completely responsible for that. He vetoed several bills to get it done and did not rest until the bank went bankrupt and ended. President Andrew Jackson was a great President, a great husband, son and father but most importantly, he was a good all around person who accomplished so much in his life.

Developmentally Appropriate Practice

Please answer the following questions.1. What does the acronym DAP in the field of early childhood education stand for? In one sentence, explain what the phrase means to you when you spell it out. (4 points)â€Å"DAP† – Developmentally appropriate practiceDAP refers to a framework designed to encourage young children’s optimal learning and development. Ensures that children’s goals and experiences are suited to their learning and development and challenging enough to promote their progress and interest. Best practice is based on knowledge and not on assumptions of how children learn and develop. DAP is the best practice to promote excellence in early childhood education.2. What three areas of knowledge must all early childhood professionals consider in relation to DAP? (These are outlined under the first DAP core: Knowledge to consider in making decisions.) (6 points= 2 points eac h)Below three areas of knowledge that must be considered by all early childhood professionals should consider in relation to DAP: a. Knowing about child development and learning.Knowing what is typical at each age and stage of early development is crucial. This knowledge, based on research, helps us decide which experiences are best for children’s learning and development. b. Knowing what is individually appropriate.What we learn about specific children helps us teach and care for each child as an individual. By continually observing children’s play and interaction with the physical environment and others, we learn about each child’s interests, abilities, and developmental progress. c. Knowing what is culturally important.We must make an effort to get to know the children’s families and learn about  the values, expectations, and factors that shape their lives at home and in their communities. This background information helps us provide meaningful, rele vant, and respectful learning experiences for each child and family.3. Describe an example of what a DAP activity or interaction looks like with children. (5 points)I quoted an example of teaching a Preschooler an example of DAP activity with Children: Good preschool teachers maintain appropriate expectations, providing each child with the right mix of challenge, support, sensitivity, and stimulation. With their knowledge, skill, and training, teachers can ensure that programs promote and enhance every child’s learning. DAP in preschool looks like:â€Å"In the dramatic play center, two 4-year-old girls are pretending to read menus. Jaimi, noticing that neither girl has taken on the role of waiter, takes notepad and pencil in hand and asks them, â€Å"May I take your order?† Over the next few days, more children join the restaurant play. Waiters set tables, take orders, give orders to the cook, and prepare checks for diners.† Jaimi is an observant, inventive, and intentional teacher. Her intervention sparks fresh play, tempting children to take on different roles, enrich their social and language interactions, and use writing and math for new purposes.4. List the five guidelines of DAP and explain what each one means in your own words. (10 points= 2 points each)These guidelines address five key aspects of the teacher's role:I. Creating a caring community of learnersThe early childhood setting functions as a community of learners in which all participants consider and contribute to each other's well-being and learning.Social relationships are an important context for learning. Each child has strengths or interests that contribute to the overall functioning of the  group. When children have opportunities to play together, work on projects in small groups, and talk with other children and adults, their own development and learning are enhancedII.Teaching to enhance development and learningTeachers use their knowledge about children in genera l and the particular children in the group as well as their familiarity with what children need to learn and develop in each curriculum area to organize the environment and plan curriculum and teaching strategies.Teachers develop, refine, and use a wide repertoire of teaching strategies to enhance children's learning and development.III.Planning curriculum to achieve important goalsEffective curriculum plans frequently integrate across traditional subject-matter divisions to help children make meaningful connections and provide opportunities for rich conceptual development. Curriculum promotes the development of knowledge and understanding, processes and skills, as well as the dispositions to use and apply skills and to go on learning.IV.Assessing children's development and learningAssessments are tailored to a specific purpose and used only for the purpose for which they have been demonstrated to produce reliable, valid information.Assessment of young children's progress and achiev ements is ongoing, strategic, and purposeful. The results of assessment are used to benefit children in adapting curriculum and teaching to meet the developmental and learning needs of childrenV.Establishing reciprocal relationships with familiesReciprocal relationships between teachers and families require mutual respect, cooperation, shared responsibility, and negotiation of conflicts toward achievement of shared goals.Parents are welcome in the program and participate in decisions about their children's care and education. Parents observe and participate and serve in decision making roles in the program.

Paradoxical Thinking: Maintaining Stability in Changing Environments Essay

Abstract Post-recession business trends show companies that survive and continue to develop; apply agile business models that respond quickly to external change. Traditionally linear approaches to problem solving such rational goals models or â€Å"cause and effect† thinking were standard in the workplace during the first quarter of the twentieth century. Is â€Å"cause and effect† thinking going to generate the type of results needed to survive with today’s post-recession business dynamics? Complexities of the workplace today require Master Managers to think both creatively and critically to drive results. When leadership applies paradoxical thinking supported by the Competing Values Framework, organizations have opportunities to thrive. Introduction / Definition Change and flexibility are seen as essential components of successful organizations in turbulent environments with strong competition and may be even more important in times of tumultuous crises. Organizations need to run  fast to keep up with the numerous and intensive changes taking place in their environments (Steinkellner and Czerny, 2010) Post-recession business trends prove that companies that survive, develop, and grow use agile business models that respond quickly to external changes. Traditionally linear approaches to problem solving such rational goals models or â€Å"cause and effect† thinking were standard in the workplace in the first 25 years of the twentieth century. Is this approach the most effective use of management’s resources today? Complexities of the workplace require Master Managers to think both creatively and critically to drive results. Paradoxical thinking is the ability to reverse, manipulate, combine, and synthesize opposites† (Ravi , n.d.). What exactly is a paradoxical thinking? It’s the act of considering two seemingly inconsistent or contradictory concepts then harnessing the opposing forces to produce new possibilities. Paradoxical thinking, if applied effectively, can produce innovative solutions to meet and possibly exceed organizational goals. While organizational leaders are expected to stabilize systems, they are also challenged to adjust the existing structural arrangements and patterned behaviors and to ask frame-breaking questions. Managers must send consistent messages and align strategy with structure, but must never allow the organization to settle into complacency. As soon as â€Å"balance† is achieved, it must be destroyed. Managers must have the cognitive complexity and behavioral flexibility that will allow them to shift from one paradigm to another and thus to effectively manage paradoxes and optimize performance (Belasen, 1998). For example, managers want their organizations to be flexible and adaptive, yet integrated and stable. They want higher internal efficiency and profitability and also higher employee commitment and morale. The art of managing and leading organizations today lies in embracing incompatible forces, rather than choosing between them. (Belasen,1998). The Competing Values Framework (CVF) is a powerful integrative model that is rooted in the contradictory criteria of effectiveness that describe managerial leadership. Hence, mapping out the repertoire of leadership roles essential to dealing with paradoxes, and assessing and developing requisite managerial competencies are important strategic human resource goals. Assessing current managerial competencies  and future organizational needs is an important strategic staffing function that can enable top managers to align organizational capabilities with business strategy. The CVF is a powerful theoretical construct with applications that feat ure supervisory roles and competencies, (Quinn, R. E., Faerman, S. R., Thompson, M. P., and McGrath, M. R., 1996). Example of a company that demonstrates paradoxical thinking I work for a global biotech company that develops rapid point-of-care diagnostics. Their products focus on cardiology, infectious disease, toxicology and diabetes. In 2012, the Food and Drug Administration (FDA) audited the company. The FDA found Quality system violations in manufacturing and issued the company a warning letter. In response to this external threat, the company’s leadership went full throttle to defend the organization. During the most intense parts of our remediation efforts, the experience seemed chaotic, however with the new understanding of paradoxical thinking, its clear to me that leadership’s directives were strategically managed. â€Å"Cause and effect† thinking was not complex enough to respond to the FDA’s demands. The work climate internally was intense as we closely followed leadership’s vision. Our organizational shift moved from mainly a Compete quadrant focus, to integrating all four quadrants of the Competing Values F ramework (Collaborate, Control, Compete and Create). Most of our energy was understandably was expended between the Control and Create quadrants. The company’s management energized employees as new cross-functional teams emerged and strove to deliver on new internal and external campaigns to unify us globally. Leadership developed and effectively communicated a new vision framed around shared values of meeting the FDA’s requests, responding to the letter, and releasing quality product back on the market to the patients that needed them. The new shared-vision helped everyone focus on the new, while paradoxically repairing the old. Old processes were scrutinized, evaluated, challenged, and re-evaluated. We had to maintain control of what we were doing correctly while paradoxically implementing new changes. Management also dealt with the economic paradox of not being able to sell viable product while needing to spend on hiring new talent to research, repair, and remediate the findings in the warning  letter. Although the company is still recovering, new internal processes for validating the manufacturing line were eventually implemented and product returned to market. Organizational change, obviously, is often imperative in response to emerging customer demands, new regulations, and fresh competitive threats. But constant or sudden change is unsettling and destabilizing for companies and individuals alike. Just as human beings tend to freeze when confronted with too many new things in their lives—a divorce, a house move, and a change of job, for example—so will organizations overwhelmed by change resist and frustrate transformation-minded chief executives set on radically overturning the established order (Price, 2012). Can one learn paradoxical thinking? Yes, as long as one is open to change and committed to learning new ways of thinking. Embracing the paradoxes can be uncomfortable: it’s counterintuitive to stimulate change by focusing on boundaries and control when a company wants to stir up new ideas. Yet the act of trying to reconcile these tensions helps leaders keep their eyes on all their spinning plates and identify when interventions are needed to keep the organization lined up with its top priorities (Price, 2012). Acceptance involves viewing both sides of competing demands as simultaneously possible, even if they are inherently in conflict. By accepting paradoxical demands, leaders recognize them as an opportunity and â€Å"invitation to act,† rather than as an obstacle (Smith, W.K., Besharov, M.L., Anke, Wessels, A.K., Chertok, M., A, 2012). Paradoxical thinking as a skill related to intelligence. Why is it least used? Paradoxical thinking breaks norms and pushes the limits of complex reasoning and logic. Being able to integrate opposing lines of reasoning to synthesize one common result is a high art. Paradoxical thinking is counter-intuitive and results of this thinking bring change. Barriers to change include fear of mistakes or failure, intolerance of ambiguity, judging or being judged. How management and leadership can utilize paradoxical thinking to improve the organization Once management has determined how to apply paradoxical  thinking, a shared vision needs to be created and conveyed to the organization to give employees a path to follow to reach collective goals. Once individuals grasp a common picture of a desired future everyone can move towards that improved future-state in unison. A shared vision is â€Å"a vision that many people are truly committed to, because it reflects their own personal vision. Shared vision is vital for learning organizations because it provides the focus and energy for learning.† (Senge, 1990). Within the Competitive Values Framework, management can take the opportunity to improve the organization by motivating employees, engaging them in new activities to improve performance and reward them for contributions to change. Leadership can re-structure and revise business process for improved outcomes for customers’ pro ducts and services. Paradoxical thinking can literally re-invent the organization to compete in the modern economy. Leadership must cope with the paradoxical relationship between stability and change to improve the organizations. Conventional management’s approach to paradox are characterized â€Å"by tendencies which encourage polarized, black/white, good/bad thinking†. From an analytical perspective four different modes to cope with the paradoxical relationship between stability and change can be found to (1) accept the paradox, keep stability and change separate and use the paradox constructively, (2) separate the poles of the paradox to different locations or levels, (3) temporally separate stability and change, and (4) advance new conceptions through introducing new concepts or a new perspective. Compared with traditional modes, the paradox of stability and change may intertwine and instead of negating and displacing one another, they can mutually reinforce each other in a process of renewal (Steinkellner, P.F., and Czerny, E. J., 2010). Conclusion â€Å"Cause and effect† thinking hinders mastery as it’s linear approach is not complex enough to delve into the dynamics of today’s organizational environments. Using paradoxical thinking one can taking two seemingly inconsistent or contradictory concepts then harnessing the opposing forces  to possibly exceed organizational goals. Placing paradoxical thinking into the Competing Values Framework gives organizations the opportunity to explore new alternatives and innovate. Innovation is the key to growth in the business environment. References Belasen, A. T., 1998, Paradoxes and Leadership Roles. Retrieved from http://www8.esc.edu/ESConline/across_esc/forumjournal.nsf/wholeshortlinks2/Leadership+Roles Price, C., 2012, Senior executives will better balance people and priorities by embracing the paradoxes of organizational life. Retrieved from http://www.mckinsey.com/insights/organization/leadership_and_the_art_of_plate _spinning Quinn, R. E., Faerman, S. R., Thompson, M. P., and McGrath, M. R., 1996, Becoming a master manager: A competency framework. Retrieved from http://www8.esc.edu/ESConline/across_esc/forumjournal.nsf/wholeshortlinks2/Leadership+Roles Ravi, K. R., Paradoxical Thinking. Retrieved from http://www.krravi.com/paradoxicalthinking.pdf Senge, P., The Learning Organization. 1990 Retrieved from http://infed.org/mobi/peter-senge-and-the-learning-organization/ Smith, W.K., Besharov, M.L., Anke, Wessels, A.K., Chertok, M., A Paradoxical Leadership Model for Social Entrepreneurs: Challenges, Leadership Skills, and Pedagogical Tools for Managing Social and Commercial Demands. Retrieved from http://www.buec.udel.edu/smithw/Smith,%20Besharov,%20Wessels%20and%20Chertok_Social%20Enterpreneurship%20AMLE_2012.pdf Steinkellner, P.F., and Czerny, E. J., 2010, Educating Managers for a Paradox World – Duality and Paradoxes in Management. Retrieved from http://www.iff.ac.at/oe/media/documents/Paper_38_Steinkellner_Czerny.pdf