Coffee Shops Essay

1. To describe consumers’ decision making in different market segments when they choose retailers of coffee using CDP. 2. To identify additional research that should be conducted to validate assumption about consumer decisions at each stage of the CDP model. 3. To learn how to organize marketing program should be provide for our customers after recognize their decision making process. 4. To see the impact of brand positioning to the consumers decision making. 5. To recommend marketing strategy after learn about consumers decision making process. 1. 0 Summary 2. 0Problem Identification Figure 1: Crimson Cup market segments As a wholesaler of coffee and tea and a provider of marketing programs to independent coffee shops and retailers, CrimsonCup has experienced growth over the past decade and is within range of becoming the nation’s second- or third-largest alternative to Starbucks. Figure 1 show about the segmentation of the Crimson Customers which divided into primary customers and ultimate customers. Primary customers are the independent coffee shops, grocery and restaurant. However the ultimate customers are divided into two groups; first is the consumers that buy the coffee from the primary customers and brewing at home; second is the consumers go to the coffee shops to drink coffee. The important of understanding of the ultimate customers are very important because the demand of the primary customers comes from the demand of ultimate customers as consumers. This company branding mission has focused on creating the independent retailer as the brand, rather than the product supplier. The CrimsonCup brand is featured on packaged coffee sold by retailers for office or home consumption, on mugs and cups provided to retailers and in some other promotional materials, and the firm is now considering the issue of weather it should be more aggressive in its promotion of the CrimsonCup or Coffee for Independent Thinkers brands as well as how best to develop its strategy of helping the independent coffee shops it serves. In understanding of the consumers’ wants and need, they search for many information and from the case, there is one consumer research already give some result about coffee consumption that made the university students or people that closely related to the university environment as focus group. The information get from this research need some additional approval from others finding to made their assumption about the behavior of the consumers to the Crimson Cup product or information related to the coffee consumption will be more meaningful to understand the attitudes of the consumers. By using the consumer decision making model, we are trying to analyze the consumer behavior in consuming coffee and make our recommendations about what strategy should be focus by this company and to suggest some alternatives to solve their problems and to get more opportunities in this industry. 3. 0Analysis We are using the consumers’ decision making model to analyze the consumer behavior of this company. 3. 1Market Segmentation Evaluation The differences of consumers in making decision will make them divided into difference segments in the market. Before we continue to discuss about the consumer decision making process that shows in figure 2, we underline first the environmental influences and individual differences because this two elements in the CDP’s model will be important to most of part in the consumer decision making process. Environmental Influences We found that the environmental influences for this product are culture, family and situation: 1. Culture: The customer segments in this case change over the past year. The American coffee culture brought on by an insurgence of gourmet coffee retailers and than evolved to a point where â€Å"getting a coffee, going out for coffee, is our little space in the workday to call our own†. The evolution of the culture show that how important of coffee in the American culture and they consume it anytime that more than just take the coffee in their breakfast early in the morning. 2. Family: From the research, one of important factors that influence purchasing decision is recommendation from family or friends. 3. Situation: The consumption of coffee in this market segments can also influence by occasion factor means when the whether at that time in winter, they will take more coffee rather than during summer. Figure 2: Consumer Decision Process Model Individual Differences 1. Consumer resources will make individual influences because the consumers in this case have different resources especially time, students or people that working in the university will have limited time to spend for searching location for the coffee shops. They will choose the nearer shops to take a little break to make them fresh. For the money resources, they are not constraint of it because from the research price is at sixth factor that encourage them to buy the coffee and seventh factors that discouraged them to not take it. We can predict that, the consumers in this coffee drink market are not price sensitive because of enough money resources. 2. Attitudes: The beliefs and feeling that more on quality and convenience place when they consume the coffee will make differences to their individual factors. Percent Beliefs and feeling 1. 58 Regularly buy coffee at coffee shop said coffee shops offer better-quality coffee. 2. 33 They think coffee shops sell better coffee than those of their competitors 3. 37 Purchase their coffee at coffee shops instead brewing it at home normally goes to the closest one. 4. Personality: person that need more energy and have busy lifestyle will take more coffee rather than people that consume it because of social activities like to spend time with their friends with coffee. 3. 2Need Recognition. Consumers in the coffee market will start recognize that they need to take a cup of coffee at least when there is environmental influences occurs, when their mind set that they must take coffee as the term as ‘consumption norms’ in their culture, they will need to take it anytime. That is the reason why the American will take coffee not only in the morning like Malaysian in their breakfast but anytime when it crosses to their mind. They also will take coffee more in the winter season because their need to make themselves hot and tasty, as well as the routine and tradition of sharing a drink with friends as a social event. For individual differences, the need of the student and people in the university will be differences each of them depends on their psychological affect that when they want to have energy or avoid sleepy when they doing their work, they have to take a coffee. The need recognition for this group will be high when they have many assignments that must be done every time and have to stay up at night. 3. 3Search When the consumers had need recognition process in their mind, they will start with making internal search. In their memory will have some information when they are exposing and have retention to some coffee brand before in their mind. Marketer must stimuli the consumer memory with their activity and non-marketer also give some conformation in this process that consider as external search. Even from the research said that brand is not factors that really encourage or discourage them to choose the coffee but how the marketers positioning their brand still are important. In this case, the marketers generally make TV commercials, store displays, give free samples in the mall and fliers and newspaper coupons to influence the consumers but approach that use by the Crimson Cup to position their product using: 1. Their position statement is â€Å"coffee for Independent Thinkers† as approval to consumers that they will get quality drinks in a clean and friendly environment. From the report said, â€Å"People see ‘coffee for independent Thinkers’ and come in to the coffee house. They like the message. † 2. The Crimsoncup believe that quality can make consumers perceive more better to their product and because of that, they offer quality coffee bean that: Have Fair Trade Certified Organic coffee are certified by USDA (Quality Certification Services) Signature blends. Flavored coffees in light, medium, and dark roasts with Class I Specialty Grade Coffee. Non-marketer also will stimuli them because in this case, word-of-mouth from other people experience will influence them to get information about a new coffee house. Recommendation from family and friends also will influence them to choose the coffee shops. The more effective stimuli expose to the consumer the more intention the brand will be keep it the memory of the consumers. 3. 4Pre-Purchase Evaluation of Alternatives Again this process will influence by environmental influences and individual differences. If they have and experience before with satisfaction after consume the coffee drink, positive reinforcement will be happened to encourage them to use this information in the pre-purchase evaluation alternatives process. But the most important element here is the influence or recommendation from the family and friends to choose the coffee shops or to buy the coffee brands. Here, factor that encourage and discourage will be play in the consumer mind while making evaluation. Research finding is like table 1 and table 2 that mention about factors encourage and discouraged consumers to return to the coffee shops. Table 1: Factors encourage consumers to return to the store Factor Description Score 1. Location Highest score show that the consumers prefer to choose the closest store/shops. 6. 6 2. Taste – 6. 43 3. Atmosphere When going for social reason, atmosphere is important, but less when going alone. 6. 04 4. Price Ranked fifth 5. 19 5. Brand For a favored brand was a reason to purchase coffee for office or home use. 4. 95 Table 2: Factors discourage consumers to return to the store Factor Description Score 1. Taste Highest score 6. 90 2. Price Ranked fourth 6. 00 3. Brand. Brand ranked low as a reason for choosing a store or determining frequency of visits to the store. 4. 56 Even the locations the first choice but the reason of consumers will return to the store are combination of taste, price and location. Speed of service was also mentioned as a factor when deciding to go. 3. 5Purchase When they purchase the coffee, the factors that will attract them to come to the shop are the location and the quality that they will receive from the shop like the taste of coffee as the second encourage factors and also clean and friendly environment. From the report of the Crimson Cup Independent retailers said ‘People see ‘Coffee for Independent Thinkers’ and come in to the coffee house. They like the message’. This shows the success of the retailers to attract the consumers using the brand slogan and the services that will provide clean and friendly environment. 3. 6Consumption From the research found that the most positive items sometimes bought at a coffee shop were breakfast food such as list in table below: Table 3: others items buy in coffee shop. Food Percentage 1. 2. 3. 4. Bagel and muffins Sweets (cookies and cakes) Chai tea Not ever purchase other items 55 14 8 13 Because of the culture of American like coffee, so there is no special time for them to get a cup of coffee but for the students, the probability is drinking coffee early in the morning to boost energy before start work or at night to retain and maintain energy to stay up doing assignment until early in the morning. 3. 7Post-consumption Evaluation. From the case, if they have a bad experiences to the coffee they will make punishment with tell others consumer to not take the coffee at that shop but when they have positive experience they will came again. The research finding tell us that taste of the coffee will be the second important factors why they choose the coffee drinks and the first factor they not return to the coffee shops. So, even location will be the first factor to encourage them to come again to the shops but the taste still be most important as the first things that should be focus by the Crimsoncup to maintain the product quality. Quality is more refer to the taste and the convenience is more refer to the location. The level of satisfaction is encourage by this both factors that make the consumers perceive they receive a good quality product at the right location plus with quality extra services in clean and friendly environment. 3. 8Divestment They did not mention about anything for this process. We will suggest them to make research to identify some information like what the customers do with the bean if they brew it at home, the packaging and maybe the cup to serve the coffee. This information can be use by Crimson Cup to complete building an effective marketing strategy. 4. 0SWOT analysis of Crimson Cup coffee From the case, we analysis their company using SWOT analysis like figure below: Strength Weaknesses Statistics shows that small prepared coffee retailers are growing faster than the mighty Starbucks. Crimson Cup is has specialize in this industry by served independent coffee houses, teaching independent coffee shop owners the skills needed to operate a viable and competitive business. Greg Ubert as a founder of this company is the author of ‘The Seven Steps to Success: A Common Sense Guide to Succeed In Specialty Coffee’. We see this directly to share skills and information with the independent coffee shops retailers but indirectly influence the consumers that they will get quality services from the coffee shops. They have their own website that can search from website address www. forindependenthinkers. com or www. crimsoncup. com . Its expert baristas have opened well over hundred coffee shops around the country. Its starts-up program includes every things needed to operate independently without the constraints of franchise agreements. The coffees that they serve have quality certification like we discuss at the previous chapter. The slogan ‘Coffee for Independent perceive positively by the consumers. The Crimson Cup just focus limit their activities on the coffee and not serving bagels and muffins or sweets even there is demand of the item that found from the research. Opportunity Threat Coffee consumption is very important in American cultures. There is winter season every year in that country. There is demand for items purchase with coffee in the shops (i. e. : muffins or cookies) . Recommendation from family or friends is one of the five most important factors for influencing purchase. 58% of respondents who regularly buy coffee at a coffee shop said coffee shops offer better-quality coffee and 33% perceive that the coffee quality of this shops better than competitors There are many competitors in coffee industry that serve with multi-style of marketing strategy such as Starbucks. The negative impression of the consumers to the coffee shops will make them distribute the information using word-of-mouth as a punishment or negative reinforcement for them our others consumers. 5. 0Alternatives There are many problems we identify before so the alternatives we provide here will give suggestion to the entire problem that we will use the make effective recommendation in the next chapter. The alternative will be dividing into: Additional research that should be done to make assumption. Brand focus Marketing strategy Marketing program (IMC) 5. 1Additional Research for More Understanding of the Consumer Behavior. After we make analysis, we put the research that had been done and come with the additional research that possible to be done to make more effective assumption for this company target market like table 4 below: Table 4: Consumer Research Stage Process Done Additional 1 Need recognition Environmental influences Culture Family Situation Individual differences Knowledge Attitudes lifestyle Environmental influences Social Class Individual differences Consumer resources Value 2 Search Stimuli (to general finding) Marketer (TV commercial, etc) Non-marketer (word-of-mouth). The research should be done more focus on the Crimson Cup. 3 Pre-purchase evaluation of alternative Factor encourage and discouraged to return to the coffee shops What make consumers satisfied and come again to the coffee shops. 4 Purchase Location Price Nature/quality of assortment Store clientele can be good research because it will be influence by the social culture. 5 Consumption How they consumer When they consume Where they consume How much they consumer? 6 Post-purchase evaluation Dissatisfaction ? (punishment) Satisfaction? Reaction? 7 Divestment There is no research state in this case. How customer’s divest packaging /cups? 5. 2Brand Focus Here is the evaluation of the alternatives for the brand focus; ‘Coffee for Independent Thinkers’ Advantages: 1. Consumers like the statement, ‘Coffee for Independent Thinkers ’. Once they see this slogan shows in the window of the coffee house, they will go in the coffee house. Besides that, those coffee houses which display this slogan on the window of the coffee houses are promise to offer quality drinks in a clean and friendly environment. 2. University students are the group of people that public perceives them as independent thinkers. So, by emphasis on ‘Coffee for Independent Thinkers’ brand, drinking CrimsonCup coffee can be a trend or lifestyle for the students. 3. When consumers see the seal, they know this coffee house is offer good quality coffee and nice environment for them to enjoy the coffee. As a result, ‘Coffee for Independent Thinkers’ slowly becomes the seal of guarantee for quality coffee. This action also fulfills the need of the consumers that the taste of the coffee is the most important reason that makes consumer to come back again. So, when the consumers see the seal ‘Coffee for Independent Thinkers’, 4. Crimson Cup primary customers is the independent coffee shops, other than attracting the consumers, they also can influence the independent coffee shops retailers to perceive positively this brand slogan. 5. The impact of the slogan show from the research that 58% of respondents who regularly buy coffee at a coffee shop said coffee shops offer better-quality coffee and 33% perceive that the coffee quality of this shops better than competitors. Disadvantages 1. Another disadvantages of promoting ‘Coffee for Independent Thinkers’ brand is CrimsonCup brand has exist for a long time. Most of the people know about CrimsonCup brand because anything about the coffee will makes consumers think of CrimsonCup. For example, when we mention about CrimsonCup, consumers will start thinking of a company who sells good quality coffee bean; a company that provide training for those who would like to open a coffee house; a company offer good quality coffee and etcetra. 2. If suddenly the company changes CrimsonCup to ‘Coffee for Independent Thinkers’ brand, consumers will get confused whether this is a new brand or another company cooperate with CrimsonCup. ‘Crimson Cup’ Advantages: 1. It already establish from 1991 and use by the company. Disadvantages: 1. Consumers are not really care about the brand of the coffee when they just simply want to drink coffee. Only those consumers who purchase the coffee mainly for office or home use will care about the brand of the coffee. So, with only focusing on the CrimsonCup, the impact of promotion or advertising activities not give high impact the consumers intention. Under this kind of situation, they will just choose which coffee house is nearer and convenient for them. 2. Consumers has possibility to ranked this brand quality is same like competitors. 5. 3Marketing Strategy To overcome with the marketing strategy, we divide the alternatives with 4 P’s. For these alternatives, we are using push strategy to encourage the demand from the consumers and pull strategy to encourage the primary customers to run their own activities that can encourage the increasing of sales. 5. 3. 1Price strategy Pricing strategy for the primary customers: Alternative 1: Allowance Alternative 2: Discount Here are the alternatives for the consumers (ultimate customers) Alternative 1: Membership price. Membership price usually entitle for primary customer who purchase constantly and loyal customers. Most of them are independent coffee shop or restaurant. Here customers need to fill in the membership form. This membership duration can last for one year. Crimson Cup provide them special price and keep their purchasing track record. For ultimate customers, every time they purchase at our coffee shop they have to present the membership card and membership number, so they are entitle for 8% discount for each cup of coffee. Each time they purchase by using the membership card they can collect the points and redeem it at our coffee shop. Other than that the advantage being a membership of CC is; based from the track record and base from the personal details we have, we will appreciate our customer during their birthday by giving them birthday coupon and they can redeem it at our coffee shop. Alternative two: Quantity discount Crimson Cup chooses by giving an ‘extra amount’ is one of the good idea to encourage customer to buy in large amount especially independent coffee shop. Every 2kg customers will enjoy 200grms extra. Customer pays for 2kgs price but enjoy 2200grms coffee. From 200grms coffee can cover at least 10 cups of coffee and coffee shop can gain an extra profit from it. For our coffee shop, customers who order five items in a single receipt worth $70 and above entitle for a regular cup of cappuccino for free. This idea is to encourage customer to come in a big group. 5. 3. 2Product strategy A product is define as anything that can be offered to the market for attention, use or consumption and that might satisfy a want or need ( Armstrong and Kotler 278). Alternative 1: Crimson Coffee CrimsonCup is a specialty coffee roaster. Their coffee beans are a special blend that Armando created, which is called Armando’s Blend. It’s smooth, no aftertaste, and smells delightfully good and full fill the coffee drinker’s need. Alternative 2: Coffee Cup Coffee can use disposable cup to serve their coffee with Crimson Coffee name and tagline ‘Coffee for Independent Thinkers’. This is because we want customers to drink with passion. The brown color paper with Crimson Coffee name is actually one different layer of paper. The main function of it is actually to absorb hit and cold; meaning that if customers buy some hot drink they can easily hold the brown layer to avoid them from hot especially kids. It is also same if they buy cold drink, the brown layer is use to absorb the water so that customer no need to ask for tissue paper. Alternative 3: Paper Bags. Fair Trade is an innovative, market-based approach to sustainable development. Crimson Cup is certified organic and shade grown. This means that the products you buy maintain biodiversity, provide shelter for migratory birds and help reduce global warming. Crimson Cup Coffee use paper bag and the material can easily recycle. At the paper bag stated clearly the Crimson Coffee Brand and tagline ‘Coffee For Independent Thinkers’ . Behind the paper bag consumers can search the map for the nearest Quality Certified stores on the CrimsonCup website. Alternative 4 : Product labeling They should show the Crimson Cup Logo at the packaging of the coffee bean that sell in the grocery or coffee shops. All off the certification they get also should be publish at the packaging or cups and mugs use to serve the coffee. Alternative 5: sell muffins, bagels, cookies and cake. They should sell items like bagels, muffins; cookies and cake because of there are demands of the products that consume together with the coffee. 5. 3. 3Promotion Strategy Making joint venture Making joint venture can be one of the methods for its marketing recommendations. For an example making joint venture with famous fast food companies such as MacDonald in order to put coffee in its menu. Now a day’s making joint venture is one of the ways for companies in order to make themselves more popular like PepsiCo which joint venture with KFC or Lipton. 5. 3. 4Place strategy. Clean, friendly environment because consumers more perceive on quality and convenience. Service delivery if the place is too far. Make a target for the range of shops in one town. 5. 4Integrated Marketing Communication program (IMC) Before we suggest alternatives for the IMC, actually the goals of the marketing program are: 1. To increase more awareness about the Independents coffee shops, grocery, and restaurant those serves the coffee from Crimson Cup or sell the coffee beans from this company. 2. To increase the knowledge of the consumers about the coffee and this activities will stimulate them to come to coffee shops or brewing at home. Alternatives 1:Barista4aDay Contest One of the programs which are launched is Barista4aDay which is a program for coffee lovers as customers (ultimate customers) or even independent coffee shop owners (primary customers). The program is simple. One coffee lover gets to spend a day learning the art of Barista. A Barista is a professional who is highly skilled in coffee preparation, with a comprehensive understanding of coffee, espresso, roast degree and espresso equipment. Point of purchase Try the coffee in front of the coffee shops. Crimson Cup travel to the focus group. Go to university or potential place by lorries. Leader’s opinion 6. 0Recommendation of Strategy After we list the all alternatives for all the problems that we underline in second chapters, we come with the recommendations below in the combination of strategy that will be run to influence the consumers’ decision making process. 4 P’s Price: Alternative 1: Allowance Alternative two: Quantity discount Product: Alternative 1: Crimson Coffee Alternative 2: Coffee Cup Alternative 4: Product labeling Alternative 5: sell muffins, bagels, cookies and cake. Promotion: Making joint venture. Package to make them try the muffin as new product Place: Clean and friendly environment. IMC (annual program) Baristas4aDay with personality Research Store clientele 7. 0Plan of action Program Responsible Duration Description 1. 2. 3. 4. 5. 6. 8. 0Contingency Plan 4 P’s Price: Alternative 1: Discount during winter season Alternative two: Quantity discount Product: Alternative 1: Crimson Coffee Alternative 2: Coffee Cup Alternative 4: Product labeling Promotion: Place: Clean and friendly environment. IMC (annual program) Point of purchase at the store Word of mouth by a leader 9. 0Conclusion. Consumer decision making model is very useful to analyze the behavior of consumers start from need recognition process until the divestment process. But, to get information for the every step or process in the model, some research should be run because research will supply more reliable and valid information to make our assumption more accurate. The assumption will be use to make prediction to the consumers decision making and this information are useful when the marketer trying to strategize their marketing programme or marketing activities to supply the products that can really transfer value the consumers. Reference: Blackwell, Miniard and Engel (2006), Consumer Behavior, 10th Ed. , Thompson, Southwestern Kotler, P. (2006) Marketing Management 12th edn. , Upper Saddle River, New Jersey; Perentice Hall. Kotler, P and Gary Armstrong (2006). Principles of Marketing 11th edn. Upper Saddle River, New Jersey, USA: Prentice-Hall Inc http://www. wikipedia. com http://www. mplans. com http://www. forindipendentthinkers. com.

Placing criminals in prison benefits everyone

In early times, prisons served an entirely different purpose from the one it does today.   While it was basically still for the enforcement of the law, it was used as a holding area for people accused of crimes and in the process of trial, and for those accused of lesser crimes as non-payment of debts.   Back then, the only two penalties for crimes were death and banishment.Over the years, imprisonment for crimes has considerably changed.   The cause for imprisonment and the conditions of prisons have changed depending on the norms and capability of societies.   However, there still stands one common reason for imprisonment of persons convicted of crimes and that is basically to keep them away from society.   It is for the purpose of keeping the public safe from criminal elements such as them and to prevent them from committing crimes again.There are four major social benefits of incarceration that must be considered in measuring the cost effectiveness of imprisonment:   retribution, deterrence, rehabilitation or incapacitation.   (Catherine Bucci, 2005).Society believes that offenders must be penalized.   This belief is as old as time.   The difference is the penalties imposed on crimes, which are markedly different from society to society, from era to era.   Serving time in prison is the convicts’ retribution for the crime they committed. Putting criminals behind bars serves to warn others of similar fate and hopefully prevent them from committing crimes also.   Imprisonment of convicts is a deterrent to potential criminals.   While serving time in prison, the convict may receive intervention to curb criminal mentality.   They are made to do activities that will take their minds off from their negative side and bring out the positive in them.   While in prison the criminal is not able to commit crime under the watch of law enforcement agents.   All these ultimately benefits society as they all focus on the control and prev ention of crime.There are four morally justified purposes for punishment.   (Ryan Kummamer, 2007).To Protect Society.   Imprisonment will keep the offender away from the public.   This is to ensure that the public will be safe and protected from further threats from criminals.  Ã‚   Society is assured that the criminal is under police custody and could do no harm again.   If the criminals are allowed to roam the streets unchecked and uncontrolled they pose a great threat to the peace and order of the community.To Reform the Offender.   Prisons are not just penitentiaries but also reformatory institutions.   While serving time, convicts are provided with opportunities that will help them to be contributing and productive members of society when they are released from prison.   These opportunities are made available to them thru skills training and rehabilitation and therapy sessions.   If prison changed the offenders, it will a better and welcomed change.As a Deterr ent to Potential Criminals.   The threat of imprisonment and serving long prison term should serve as a strong warning to potential criminals.   The threat which brings fear deters persons from committing crimes that would surely send them to jail.   Studies even show that a prison term is more feared than the death penalty.   This reinforces the assumption that imprisonment is an effective deterrent for potential offenders to keep away from committing crimes.Penalty and Pay Back.   Justice calls for penalty to be imposed for the commission of crime.   An offender commits a crime for which society wants him to pay.   The penalty of imprisonment serves as the punishment.   Imprisonment brings back order, paying back of what was taken away or restoration to the proper order and condition of a community before the incident of crime.   When the offender is put behind bars, a sense of peace once more prevails in the community that once was shaken by the crime.All four r easons justified the means to an end.   Imprisonment will have served its purpose if in the end, a reformed convict integrates to mainstream society and does not turn into a recidivist.There are several basic theories regarding criminal justice and its relation to individual rights and social control; Restorative Justice, Retributive Justice, and Transformative Justice.   (Raymond E. Foster, 2006, 2007).Imprisonment is likewise justified if the ends of justice were met and served.Restoration.   Justice calls for the restoration of what has been taken away from society because of the crime committed.   At times there were chaos, anger, disruption from normalcy and confusion.   When a criminal is confined in prison, he is taken away from the community.   This becomes the time for the community to pick up the pieces to start over.   The condition of the community before the incidence of the crime is brought back.Retribution.   The offender suffers what the victims had i n essence suffered as well.   Since time in memorial, every part in history made offenders pay up for the crimes against persons, society and humanity.   This age is no different, so that people would realize that crime definitely pays.Transformation.   Everybody deserves second chances, including convicts serving prison terms.   Their confinement in penal institutions must bring something good and purposeful.   Convicts are given the means to reform within the walls of prison.   When they are released they are hoped to become changed from the criminal that was committed to the facility to a reformed person who would re-join society.Today, unlike in the 50’s when families provide the backbone of society, many factors like broken homes cause the high incidence of crimes.   Without strong societal support and an equally effective criminal justice system crimes would be hard to control.   Given all the avenues to pursue criminal justice, deterrence must still be the first measure sought.   Deterrence from the commission of crimes is effective to fight crime.   If there is a big threat to criminals like fear of being incarcerated, that would be deterrence enough to prevent further commission of crimes.The recorded low crime rate in the 80’s up to the 90’s has been due mainly to the high possibility of   prison sentence and increased prison time for serious offenses.   Legislation to these ends had a big impact on the downward trend of crime rate.   Laws raised the odds of imprisonment and made crimes unattractive to would-be criminals.Imprisonment is a more acceptable option to a society that frowns upon capital punishment.   Church groups, civil society and human rights advocates are all against the death penalty.   In many other countries, they deplore the conditions of jails as unfit for humans giving due concern over the rights of accused.   These groups tend to see   the other end of the scales of justice .   However, prison conditions and intervention approach done and extended to convicts serving time make imprisonment the just alternative to capital punishment.Somehow justice must be carried out in a situation where a crime has been committed.   The scales of justice must be equally in favor of the perpetrator of the crime and the victim, and society in general.Imprisonment satisfies all ends of justice.  Ã‚  Ã‚   The convict must pay for the crime committed against persons and society.   Society in turn demands that justice be served thru commensurate penalty.   As penalty for a crime committed, retribution is met.   A compassionate society could find it to forgive a convict who has served time in prison for a crime committed.   Giving second chances to convicts, reformation is satisfied.  Ã‚  Ã‚   Separating the convict from society until he has repent, done time and is deemed ready to re-join society.   Public protection is assured.  Ã‚   Imprisonment scares people away from crime, then crime prevention is guaranteed.Sources:Bucci, Catherine.   (09 Jan 2005).   Rising Sanctions for Repeat Offender.Retrieved 17 Jan 2007, from  http://www.ecoon.unconn.edu/Bucci_internshippaperexample.docCrime Fighters:   Justice.   (16 Jan 2006).   Retrieved 17 Jan 2007, from  http://www.bbc.co.uk/crime/fighters/prisonservice.shtmlPrison Reform. (13 Jan 2007).   Retrieved 17 Jan 2007, fromhttp://www.en.wikipedia.org/wiki/Prison_reformCrime and Punishment in Americ:1999.   NCPA Policy Report No. 229.   (Oct 1999)Retrieved 17 Jan 2007, fromhttp://www.ncpa.org/studies/s229/s229.htmlStrategic Goal Six:   Protect American Society by Providing for the Safe, Secure & HumaneConfinement of Persons in Federal Custody.   Retrieved 17 Jan 2007, fromhttp://www.usdoj.gov/ag/annualreports/pr2001/Section06.htmlKummamer, Ryan.   (2007).   On Capital Punishment.   Retrieved 17 Jan 2007, from  http://www.newcitizenship.net/2006/12/on-capital -punishment.htmlFoster, Raymond E.   (2006-2007).   Criminal Justice.   Retrieved 17 Jan 2007, fromhttp://www.hitechcj.com/criminal-justice-degree-online/ Placing criminals in prison benefits everyone In early times, prisons served an entirely different purpose from the one it does today.   While it was basically still for the enforcement of the law, it was used as a holding area for people accused of crimes and in the process of trial, and for those accused of lesser crimes as non-payment of debts.   Back then, the only two penalties for crimes were death and banishment.Over the years, imprisonment for crimes has considerably changed.   The cause for imprisonment and the conditions of prisons have changed depending on the norms and capability of societies.   However, there still stands one common reason for imprisonment of persons convicted of crimes and that is basically to keep them away from society.   It is for the purpose of keeping the public safe from criminal elements such as them and to prevent them from committing crimes again.There are four major social benefits of incarceration that must be considered in measuring the cost effectiveness of imprisonment:   retribution, deterrence, rehabilitation or incapacitation.   (Catherine Bucci, 2005).Society believes that offenders must be penalized.   This belief is as old as time.   The difference is the penalties imposed on crimes, which are markedly different from society to society, from era to era.   Serving time in prison is the convicts’ retribution for the crime they committed. Putting criminals behind bars serves to warn others of similar fate and hopefully prevent them from committing crimes also.   Imprisonment of convicts is a deterrent to potential criminals.   While serving time in prison, the convict may receive intervention to curb criminal mentality.   They are made to do activities that will take their minds off from their negative side and bring out the positive in them.   While in prison the criminal is not able to commit crime under the watch of law enforcement agents.   All these ultimately benefits society as they all focus on the control and prev ention of crime.There are four morally justified purposes for punishment.   (Ryan Kummamer, 2007).To Protect Society.   Imprisonment will keep the offender away from the public.   This is to ensure that the public will be safe and protected from further threats from criminals.  Ã‚   Society is assured that the criminal is under police custody and could do no harm again.   If the criminals are allowed to roam the streets unchecked and uncontrolled they pose a great threat to the peace and order of the community.To Reform the Offender.   Prisons are not just penitentiaries but also reformatory institutions.   While serving time, convicts are provided with opportunities that will help them to be contributing and productive members of society when they are released from prison.   These opportunities are made available to them thru skills training and rehabilitation and therapy sessions.   If prison changed the offenders, it will a better and welcomed change.As a Deterr ent to Potential Criminals.   The threat of imprisonment and serving long prison term should serve as a strong warning to potential criminals.   The threat which brings fear deters persons from committing crimes that would surely send them to jail.   Studies even show that a prison term is more feared than the death penalty.   This reinforces the assumption that imprisonment is an effective deterrent for potential offenders to keep away from committing crimes.Penalty and Pay Back.   Justice calls for penalty to be imposed for the commission of crime.   An offender commits a crime for which society wants him to pay.   The penalty of imprisonment serves as the punishment.   Imprisonment brings back order, paying back of what was taken away or restoration to the proper order and condition of a community before the incident of crime.   When the offender is put behind bars, a sense of peace once more prevails in the community that once was shaken by the crime.All four r easons justified the means to an end.   Imprisonment will have served its purpose if in the end, a reformed convict integrates to mainstream society and does not turn into a recidivist.There are several basic theories regarding criminal justice and its relation to individual rights and social control; Restorative Justice, Retributive Justice, and Transformative Justice.   (Raymond E. Foster, 2006, 2007).Imprisonment is likewise justified if the ends of justice were met and served.Restoration.   Justice calls for the restoration of what has been taken away from society because of the crime committed.   At times there were chaos, anger, disruption from normalcy and confusion.   When a criminal is confined in prison, he is taken away from the community.   This becomes the time for the community to pick up the pieces to start over.   The condition of the community before the incidence of the crime is brought back.Retribution.   The offender suffers what the victims had i n essence suffered as well.   Since time in memorial, every part in history made offenders pay up for the crimes against persons, society and humanity.   This age is no different, so that people would realize that crime definitely pays.Transformation.   Everybody deserves second chances, including convicts serving prison terms.   Their confinement in penal institutions must bring something good and purposeful.   Convicts are given the means to reform within the walls of prison.   When they are released they are hoped to become changed from the criminal that was committed to the facility to a reformed person who would re-join society.Today, unlike in the 50’s when families provide the backbone of society, many factors like broken homes cause the high incidence of crimes.   Without strong societal support and an equally effective criminal justice system crimes would be hard to control.   Given all the avenues to pursue criminal justice, deterrence must still be the first measure sought.   Deterrence from the commission of crimes is effective to fight crime.   If there is a big threat to criminals like fear of being incarcerated, that would be deterrence enough to prevent further commission of crimes.The recorded low crime rate in the 80’s up to the 90’s has been due mainly to the high possibility of   prison sentence and increased prison time for serious offenses.   Legislation to these ends had a big impact on the downward trend of crime rate.   Laws raised the odds of imprisonment and made crimes unattractive to would-be criminals.Imprisonment is a more acceptable option to a society that frowns upon capital punishment.   Church groups, civil society and human rights advocates are all against the death penalty.   In many other countries, they deplore the conditions of jails as unfit for humans giving due concern over the rights of accused.   These groups tend to see   the other end of the scales of justice .   However, prison conditions and intervention approach done and extended to convicts serving time make imprisonment the just alternative to capital punishment.Somehow justice must be carried out in a situation where a crime has been committed.   The scales of justice must be equally in favor of the perpetrator of the crime and the victim, and society in general.Imprisonment satisfies all ends of justice.  Ã‚  Ã‚   The convict must pay for the crime committed against persons and society.   Society in turn demands that justice be served thru commensurate penalty.   As penalty for a crime committed, retribution is met.   A compassionate society could find it to forgive a convict who has served time in prison for a crime committed.   Giving second chances to convicts, reformation is satisfied.  Ã‚  Ã‚   Separating the convict from society until he has repent, done time and is deemed ready to re-join society.   Public protection is assured.  Ã‚   Imprisonment scares people away from crime, then crime prevention is guaranteed.Sources:Bucci, Catherine.   (09 Jan 2005).   Rising Sanctions for Repeat Offender.Retrieved 17 Jan 2007, fromhttp://www.ecoon.unconn.edu/Bucci_internshippaperexample.docCrime Fighters:   Justice.   (16 Jan 2006).   Retrieved 17 Jan 2007, fromhttp://www.bbc.co.uk/crime/fighters/prisonservice.shtmlPrison Reform. (13 Jan 2007).   Retrieved 17 Jan 2007, fromhttp://www.en.wikipedia.org/wiki/Prison_reformCrime and Punishment in Americ:1999.   NCPA Policy Report No. 229.   (Oct 1999)Retrieved 17 Jan 2007, fromhttp://www.ncpa.org/studies/s229/s229.htmlStrategic Goal Six:   Protect American Society by Providing for the Safe, Secure & HumaneConfinement of Persons in Federal Custody.   Retrieved 17 Jan 2007, fromhttp://www.usdoj.gov/ag/annualreports/pr2001/Section06.htmlKummamer, Ryan.   (2007).   On Capital Punishment.   Retrieved 17 Jan 2007, fromhttp://www.newcitizenship.net/2006/12/on-capital-punishment. htmlFoster, Raymond E.   (2006-2007).   Criminal Justice.   Retrieved 17 Jan 2007, fromhttp://www.hitechcj.com/criminal-justice-degree-online/

Government Essay Example | Topics and Well Written Essays - 250 words - 5

Government - Essay Example The names given to these government forms might vary depending on the state. However, the number, size and population also vary from state to state (Steytler 386). States do provide county governments with a various organizational structure. The county board has the power to govern most counties in a given state, although the name of this board varies from one state to another. Some of the commonly used names include county board of supervisors, the board of county commissioners, and the board of free commissioners. These members are popularly elected officials and that the state law strictly limits their legislative powers. However, their main responsibilities include deciding on the county budget, taxes, as well as zoning codes (Bowman and Kearney 107). In most counties, the county board supervisor has both executive and legislative authorities. The board members usually share the executive authorities with each member responsible for a different county unit and officers who are elected. The officers may include attorney, clerks, coroner, auditors, sheriff, recorder of deeds, treasurer, superintendent of schools and others (Steytler 28) County government further, issue licenses, supervise elections, keep records of vital statistics and over see many essential services including hospitals, sports facilities, as well as public welfare

Global Health Access Project and the Mae Tao Clinic in Burma Essay

Global Health Access Project and the Mae Tao Clinic in Burma - Essay Example She realized the healthcare requirements of the refugees and established makeshift healthcare facility in Mae Sot so that the injuries and other healthcare problems of the Burmese refugees could be adequately cured (Clarke, p4). The clinic is equipped with adequate medical instruments and machinery and provides wide range of services to the patients. Along with the healthcare services, the clinic also offered social services, training programs, outreach programs, child protection awareness program and health education. (Sullivan et al, p255). Burma is the largest country of mainland South Asia by its geographical area. The official name of Burma is Union of Myanmar. The country is bordered with China, Thailand, India, Bangladesh and Bay of Bengal. The government has been dominantly controlled by the military after the General Ne Win’s coup in 1962. Since then the Burma is under the strict control of the State Peace and Development Council that is led by the military Junta. The country is blessed by the nature with rich and fertile land and resources. Under the military rule, the country has experienced economic downfall and also became the source of refugee crisis that is among the most extended refugee catastrophe of the world (Fink, p87). The cubing policies of the military Junta compelled thousands of inhabitants to cross the border of Burma. These people found rescue in the neighboring countries like Bangladesh, India, Malaysia and Thailand and the number of the Burmese refugees has exceeded the limit of half million. It is also found that almost 150,000 Burmese migrated to Thailand that are living in the designated camps. Global Health Access Program (GHAP) is a nonprofit organization that works for the improvement of the communities facing certain crisis either locally or internationally. GHAP uses to support the healthcare initiatives taken by the Mae Tao clinic for the Burmese refugees in

Derrida's Deconstructionism and how it is a critique of the concepts Essay

Derrida's Deconstructionism and how it is a critique of the concepts of 'presence' and 'centre' - Essay Example It is a critical and yet uncritical in its subversion. Just like looking on how to destroy or to defeat an enemy" http://www.geocities.com/philodept/diwatao/derrida_and_saussure.htm Different scholars and critics defined Deconstruction in their own way. Somehow with many definitions the theory became richer over the years. "It represents a complex response to a variety of theoretical and philosophical movements of the 20th century, most notably Husserlian phenomenology, Saussurean and French structuralism, and Freudian and Lacanian psychoanalysis" http://prelectur.stanford.edu/lecturers/derrida/deconstruction.html Derrida starts with the structure, but he is not happy with the binary structure and showed that dualisms are never equivalent; but are hierarchically placed. He said one pole is privileged at the expense of the other. The centre and presence are the originally attributed qualities to the speech, which have been continuing for a long time now. Speech has been given more importance, whereas the writing has been relegated into the secondary place. He said the logocentric tradition of the western thought since Plato has made the written word as a mere representation of the spoken word. Paul De Mann is another critic who adopted the same style of criticism. It is best understood as a textual strategy. He posed a challenge to metaphysical speculation. He argued: "Structure has always been neutralised or reduced.by giving it a centre or referring it to a point of presence, a fixed origin," Derrida (1978, p.278) and even the quantitative enlargement of adding historical experience does not help it. He started with exposing the problems of centred discourses. "Derrida argues that the "structure" determining these discourses (including "structuralist" theory itself) always presupposes a "centre" that ensures a point of origin, meaning, being, or presence. What troubles Derrida is that the centre determines a given systems structure but is itself strangely above or transcendent of such structural analysis or scrutiny" http://www.usp.nus.edu.sg/post/poldiscourse/spivak/deconstruction.html His argument is that the centre that ensures a presence. The presence, he says, is the original state and should come first, just like how the world is present around us, and it is connected to the consciousness and self-reflection and gives a meaning. This means, presence is the predicate for a text's meaning, according to Derrida. It is accepted that Derrida had great influence on the intellectual thinking of the world. The paper he presented to John Hopkins University in 1966 changed the critical movement in United States. In this paper he uses the structure, structuralist theory while saying that there exists a centre in every structure. He argues that this is needed by the readers because it is definite that there is an existing presence. The centre is the main unity that supports the structure, which would not have contained much meaning without that centre. "if we try to undo the centring concept of 'consciousness' by asserting the disruptive counterforce of the 'unconscious' we are in danger of introducing a new centre, because we cannot choose but enter the conceptual system (conscious/unconscious) we are trying to dislodge," Selden (1985, p.144). Deconstruction and poststructuralism have been in close terms

American Dream Research Paper Example | Topics and Well Written Essays - 1500 words

American Dream - Research Paper Example In Europe, this concept of freedom in pursuing one’s dreams could not be fruitful because of the class divisions. America being a classless society can adopt this concept of American Dream with much freedom. But, to achieve something according to one’s abilities and to gain respect irrespective of his status in society, one has to get rid of his selfish desires and should not indulge in â€Å"physical comfort and cheap amusement† (Schnell, 2010, p.3). Achieving American Dream To achieve a successful life is the fundamental concept of American Dream. Generally, the idea of American Dream is to get high income through a secured job and financial security. Financial success is just one part of American Dream. People also tend to achieve social status by getting membership in social clubs or by achieving the peak of one’s chosen career. Success also means attaining a position in the society where one can have the right to speak his mind, do whatever he wants to do and create a world which will be worth living for everyone. The way of achieving success can also lead to conflict in American families where children can forego the wealth and social status of their parents for the want of accomplishing more meaningful goals in life. The goal of American Dream is not to achieve millions of dollars, but for general people the focus is on attaining enough wealth to lead a decent life with dignity and self respect (Hochschild, 1996, pp.15-16). The concept of s uccess can also be relative in nature. A person may want to lead a better life compared to his own childhood days or his neighbors, a character from a book or movie or to another gender or race. There is also a competitive nature of success wherein a person can become successful only when another person faces failure like in competitive events like beauty pageants. Most Americans feel that the future generation of their nationality can live a better standard of living and can achieve success in attaining their goals in life. In America there are many opportunities for everyone who is ready to work hard to achieve success. One definition of success can be wealth. Although money cannot buy happiness, it can nevertheless buy the things necessary to live a comfortable life (Hochschild, 1996, pp.16-19). Obstacles in achieving American Dreams Many Americans believe that it is difficult to achieve the goals that they set in their own lives. This is because they say that there is no securit y in their financial status and also there is lack of proper infrastructure for public education. They feel that the government who claims to help the people of the nation is actually a hindrance in the path of their achieving dreams. The African-Americans believe that the existing racial discrimination can make it difficult for them to pursue their dreams. Almost 72% of Americans believe that the government must strive to help the people in achieving their dreams of a comfortable and respectful life (Longley, 2004). In America there are various public policy tools which aim at giving the children of poor parents a chance to earn high income. Such policy tools along with the nation’s economic system are not achieving the desired results. The laws to deal with racial discrimination also do not prove to be fruitful in most cases. There are several social and economic obstacles in achieving American Dreams. The children of poor families attend inferior schools and get poor educa tion. The children from rich families inherit more wealth and this gives them an added advantage. It is important for the future genera

History of Bosnian Muslims in Bosnia-Herzegovina Essay

History of Bosnian Muslims in Bosnia-Herzegovina - Essay Example The Bosnian realm lost its independence to the Ottoman Kingdom in 1436. It acquired its name Bosnia and Herzegovina as an effect of a sudden change of political events. The Austro-Hungarian realm officially took over Bosnia and Herzegovina in 1908 to create a Greater Serbia. This ignited the flames of the Serbs which made them revolt and eventually led to the assassination of the Austrian Archduke Franz Ferdinand. This assassination also was the reason behind World War I.1 The Kingdom of Yugoslavia annexed Bosnia after the First World War. From 1941-1945, Bosnia was a part of the Independent State of Croatia. Though being part of Croatia, the Partisan had large part of Bosnia under its control. After this timeline, Bosnia and Herzegovina became a federal republic constituent of Yugoslavia.2 Bosnia and Herzegovina finally announced its independence in 1992 after its separation with Yugoslavia. But due to this proclamation of independence, many Bosnian Serbs went up against it which resulted to a bloody war. The 1995 Dayton Agreement was established which stated Bosnia and Herzegovina being composed of two constituent territories – the Federation of Bosnia and Herzegovina and the The native people of Bosnia speak the Bosnian language. This only has slight difference from the Serbian or Croatian language. This slight difference is visible in writing and grammar but the people’s slang (colloquial) is the same with the Croats and the Serbs. Though the language has a number of orientalisms and Germaninsms, this doesn’t limit affect the communication of different people in the land. 4Due the geographical situation of Bosnia, being at the middle of Serbia and Croatia, the language used is not so different from the neighbouring territories surrounding Bosnia. Begovica was the first script in Bosnia. This was a descendant of the Cyrillic script which was used in the entire region. The second script was the Arabica which was a version of the Arabic script.

Research paper on some aspect of John Steinbeck's life or work Essay

Research paper on some aspect of John Steinbeck's life or work - Essay Example The book stands as a testimony to their suffering and makes the reader think about the reasons which caused this to happen, and whether the people are victims of God, or fate, or of economic and political forces that exploit the poor and the weak in society. The main characters in the book are members of the Joad family, and each one is introduced sympathetically, starting with young Tom Joad who has just been released from prison, and moving on to his father Old Tom Joad, and his mother. The physical descriptions of the people express the moral qualities that they cling to despite all the hardship, for example we can see in the depiction of Tom’s mother that her solid body represents her role as the foundation upon which the whole family depends: â€Å"... her strong, broad, bare feet moved quickly and deftly over the floor ... Strong, freckled arms were bare to the elbow... Her full face was not soft; it was controlled, kindly...† (Steinbeck, 2002, p. 74) In this worl d of economic hardship, and ecological disaster, the gender roles are somewhat reversed, since the men cannot provide for their families any more in the traditional ways of having a job or working the land. Granma and Grampa are caricatures of an older generation of rural Americans, and this is conveyed in their characteristically mischievous (Grampa) or religious (Granma) behaviors, and also in the quaint, old-fashioned language that they use. Granma exclaims when she sees young Tom: â€Å"Pu-raise Gawd fur vittory† (Steinbeck, 2002, p. 78) and the spelling here shows that the author is taking great trouble to try and represent the dialect of this period and place. There is also a hint in this unusual spelling, that the people being described here are not well educated, and cannot be blamed for the difficulties that they find themselves having to face. What becomes apparent all too soon, is that the whole of society is on the brink of collapse, and the poor are at the bottom of the heap and have the least chance of surviving. Steinbeck gives them a voice through these fictional characters, and by maintaining a plot that is very true to life, he also makes sure that lessons are remembered and passed down for future generations. The fact that Steinbeck himself was a science graduate who enjoyed a relatively privileged lifestyle in California (Gray, 2004, p. 497) makes this realism all the more admirable, because he must have had to do considerable research to understand the problems faced by people in the situations described in the novel. The portrayals are affectionate, and the fact that both of the grandparent generation are dead before the story gets very far adds to the pathos of the book. In fact there is a great deal of physical suffering, illness and death in The Grapes of Wrath, as if to make it plain to wealthier Americans in later decades just how much suffering took place in recent historical times. People die of cancer, babies are stillborn, and whole families are wiped out by starvation. It is hard to imagine a grittier portrayal of American life. In the hands of some writers the long journey towards California looking for any kind of farming work would be an inspirational tale of the indomitable American spirit overcoming hardship and finally making dreams come true. Steinbeck does not paint this kind of idealized picture, however, and he stresses the harsh realities rather

Politics Comment 1 Essay Example | Topics and Well Written Essays - 750 words

Politics Comment 1 - Essay Example â€Å"Even after visiting the likely hiding places around Baghdad, the coalition found no convincing proof that Iraq retained stocks of chemical and biological weapons, or that Saddam had been trying to build a nuclear bomb† (Richie, p. 91). And still American troops remain in Iraq and as a result terror is being felt by the people, not from a dictatorial regime, but from being unnecessarily caught up in the crossfire between insurgents and American troops. U.S. invasion of Iraq has been an instrument of manipulation with underlying reasons not related to discovering and disarming weapons of mass destruction. â€Å"U.S. soldiers has no right to occupy a sovereign nation, outside of international law, and doubly so because it was done under false pretenses† (Tremblay, p. 203). Such false pretenses, experts claim, mask the ulterior motive of the U.S. of wanting to maintain control over Iraqi oil fields and to placate political conservatives who want to make the Middle Eas t safe for Israel (Mueller, p. 137). When the U.S Congress authorized the sending of troops to Iraq, it agreed to do so in order to â€Å"defend the national security of the US from the threat posed by Iraq† (Congressional Resolution 296-133 in the House; 77-23 in the Senate, as quoted by Levin, Editorials). With the fall of Saddam Hussein, Iraq no longer poses a threat to US security. Many experts argue that when illegal troops occupy a country, any violent means adapted by the country’s citizens to depose illegal occupants can be classified as guerrilla warfare. Guerrilla warfare is a war waged by the people to express their protest and outrage against forces that threaten their independence and sovereignty. â€Å"It is a defensive type of war against a foreign invader† (Eland, as quoted by Knickerbocker â€Å"Specials†). And interest groups emphasize that this type of warfare usually does not stop until the

Vikki and Tim decide to meet with a mortgage lender Essay Example for Free

Vikki and Tim decide to meet with a mortgage lender Essay Vikki Rocco, (age 26) has been living in her apartment for three years. Her savings system is well organized and she feels comfortable about the progress she is making with her financial goals. Her credit card balance is now paid in full monthly. She is continuing to save more than 10% of her gross salary in her 401(k) plan and she stay within budget. After dating for two years, she is engaged to Tim Treble (age 28), and they are planning to be married in nine months. Because they want to buy a house within the next 2 or 3 years, Vikki and Tim decide to meet with a mortgage lender to determine how large of a mortgage they will be able to afford an what they need to save. The mortgage lender asks them both questions about their finances that they hadn’t yet considered. Although Vicky feel comfortable with the questions, Tim is nervous when he forced to take a closer look at his finances. He discovers that he has much more debt than he realized. Vikki and Tim’s financial statistics are shown below : Assets Liabilities Checking Account *$10,500 (Vikki), $4,000 (Tim) Including their emergency funds Student Loan $9,000 Credit Card Balances (Tim) Car $2,500 (Vikki), $15,000 (Tim) 401 (k) balance $25,000 (Vikki), $8,000 (Tim) Income Monthly Expenses Gross Annual Salary $50,000 (Vikki) $48,000 (Tim) After-Tax Monthly Salary $2,917 (Vikki) $2,800 (Tim) Rent $750 (Vikki), $450 (Tim) Food $250 (Vikki), $350 (Tim) Student Loan $250 Credit Card Payment $300 (Tim) Entertainment-$300 Wedding Expenses $500 Gas/Repairs $350 (combined) Retirement Savings : 401 (k) Vikki $500 per month, plus 50% employer match on first 7% of pay. Tim $400 per month, plus 50% match on first 8% of pay

Classical Theories Describing Trade Between Different Nations Economics Essay

Classical Theories Describing Trade Between Different Nations Economics Essay The following essay encompasses a review based on two of the popular Classical Theories describing the fundamental basis for trade between different nations. The foremost part comprises of a treatise about the ways in which Ricardos law of comparative advantage is superior to Smiths theory of absolute advantage. The middle part is a discussion over the gains from trade arising as a result of comparative advantage. The final part talks about ways in which a less efficient country can export anything to a second nation that is more efficient in production of all commodities. In what way was Ricardos law of comparative advantage superior to Smiths theory of absolute advantage? It is imperative to understand Ricardos law and Smiths theory in order to be able to highlight superiority of former over the later. Smiths theory of absolute advantage declares that A country benefits by producing only those products in which it has absolute advantage, or can produce using fewer resources than another country. (Cavusgil, Knight, Riesenberger, 2008 ) Adam Smith was of the view point that since one nations import is the export of another nation so it was not viable for all countries to become wealthy concurrently by following mercantilist view. He asserted that if all countries were to focus only on products in which they have absolute advantage, they could export them to other countries and in return import those products in which they do not have absolute advantage in producing. He believed that this free trade will benefit all countries simultaneously. Ricardos law of comparative advantage states that It can be beneficial for two countries to trade without barriers as long as one is more efficient at producing goods or services needed by the other. What matters is not the absolute cost of production, but rather the relative efficiency with which a country can produce the product. ( Cavusgil, et.al.2008) David Ricardo argued that international trade will benefit countries even if one nation has an absolute advantage in production of all commodoties. He believed that if a country could produce a product more efficiently than a country which was self sufficient in producing the same product but with less efficiency then it is better to import that commodity from the country producing it more efficiently. Though Smith successfully established the case for free trade, he did not develop the concept of comparative advantage. Because absolute advantage is determined by a simple comparison of labor productivities, it is possible for a nation to have absolute advantage in nothing. (www.encyclopedia.com) The above excerpt quite answers the way in which Ricardos law has an advantage over the Smiths theory. The key point of the selection is quite evident: What if a nation has absolute advantage in nothing? Does it stop importing products from other nations because it has nothing to export? This is where David Recardos law of comparative advantage is superior to Smiths theory. It is more comprehensive in terms of associating specialization with opportunity cost. Unlike Smiths theory which is completely based on absolute advantage, Ricardos law of comparative advantage generates hope for nations that are technically on the back foot by entailing that they can involve in international trade even if their labor output in all commodities is less than that of a developed country. In todays scenario, an example could be of Pakistan exporting cotton products to United States and importing military guns, tanks and missiles. (http://internationaltrade.suite101.com/) United States can produce cotton products too but relatively less efficiently than Pakistan. On the contrary, United States has a relative advantage in making military products. According to Ricardos law of comparative advantage, United States is benefitting from Pakistans efficiency in making cotton products whereas Pakistan is benefitting from United Statess efficiency in making military products. The above example justifieses the win-win situation as was proposed by Ricardo. If United States was to choose to grow cotton on its land and make its own cotton products, it could possibly have done that, less efficiently though. This signifies that if Smiths theory was implemented, Pakistan would have nothing left to trade with the United States. How do gains from trade arise with comparative advantage? Based on Ricardos law of comparative advantage, gains from trade arise in terms of increased world output for any commodities that any two countries import and export from each other. No one country wastes extra time and money producing the same product less efficiently which another country can produce more efficiently. Let us assume that Country A produces a commodity more efficiently and therefore has a relative/comparative advantage over Country B for that commodity which might be able to produce that same commodity but less efficiently. Suppose Country A exports its commodity to Country B in exchange for importing something which it cannot produce as efficiently. Both Countries A and B utilized comparative advantage to get what they wanted. Both countries gained from each others area of expertise. This assumption outlines outcome of Ricardos law of comparative advantage. Another example could be of trade between Saudi Arabia and Australia. Both nations utilize their natural advantages to gain from trade. Saudi Arabia has ample Oil which it exports to Australia. In return it imports Bauxite (finest quality of coal) from Australia. In this way, both nations are benefitting by exchanging what they have in excess with what they do not have or which may be there but more difficult to extract. Australia might be having reservoirs of Oil available deep within its Oceanic boundaries but the cost of extracting them would be too high. Labor costs are much higher in developed countries such as United States. These countries mostly hire government owned or government supported firms providing cheap skillful labor in developing countries such as China to get their task accomplished. What did they each gain from trade arising with comparative advantage? Developed countries gain: Cheap labor hence more profit. Developing countries gain: Employment. So it becomes a win-win situation. United States gets its product manufactured at a much lower cost than it would have back in United States. China gets employment. How can a nation that is less efficient than another nation in the production of all commodities export anything to the second nation? Ricardos law of comparative advantage demonstrates that a nation that is less efficient than another nation in the production of all commodities can still export to the second nation. That is because what matters is not the absolute cost of production, but rather the ratio between how easily the two countries can produce the products. (Cavusgil, et.al.2008) Ways in which Ricardos law plays its role in helping a less efficient nation export commodities to a more efficient nation have been discussed in the previous part of question. A less efficient nation can also export to the more efficient nation by implementing and incorporating competitive advantage in its international trade policies. A nation can attain competetive advantage by coming up with innovative advancements, by targeting industries for development, providing low-cost investment, reducing taxes, and by investing in emerging technologies to take up the future. Policies should be encouraging for local and foreign investments such as tax free business in Dubai. Industrial clusters should be promoted which often act as a nations export platform. Michael Porters famous Diamond Model outlines the way a country can increase its competetiveness: ( Cavusgil, Knight, Riesenberger, 2008, pp-104) Conclusion: As is evident from the above essay, Ricardos law is superior from Smiths theory because it justifies that trade is still possible between two countries even if a country does dont have absolute advantage in anything. The above arguments also prove that comparative advantage is advantageous to both the trading nations as a result of utilizing relative advantage in import and export. Besides Ricardos law of comparative advantage, competetive advantage supported by Michael Porters Diamond Model can help a less efficient nation develop industrial clusters so as to be able to export to a more efficient nation.

Clozapine :: Drugs Science Medical Psychology Essays

Clozapine Clozapine is an atypical anti-psychotic medication that acts as an antagonist (a drug that blocks the effects of a neurotransmitter), thus producing an inhibitory effect, at a variety of neurotransmitter receptors in the brain. The exact site and action by which Clozapine produces its therapeutic effects is difficult to locate due to the complexity of its interactions with several neurotransmitters. It is believed that the two key neurotransmitters that Clozapine interacts with are serotonin (5-HT) and dopamine (DA), particularly at 5-HT2, D2, and D4 receptors (Brenner, H.D., BÃâ€"ker, W., Genner, R., 2001). Serotonin is a biogenic amine derived from tryptophan that generally produces inhibitory postsynaptic potentials (meaning that it causes hyperpolarization of the postsynaptic cell membrane).Functions of serotonin include regulation of sleep and emotions. Dopamine is a monoamine catecholamine derived from the amino acid tyrosine. Receptors that bind dopamine are termed dopaminergic. Dopamine is one of the principal modulatory neurotransmitters in the brain and may have inhibitory or excitatory effects depending upon the response of the postsynaptic receptor (King, www.indstate.edu). Clozapine also has effects at muscarinic M1 receptors, adrenergic receptors, cholinergic receptors, and histamine receptors (Brenner, et al). There are many disputed theories of the biological causes of schizophrenia. One of the most prominent ideas is the "dopamine hypothesis." The dopamine hypothesis attributes hyperdopaminergic function, meaning an excess of dopamine at certain synapses, as a possible cause of schizophrenia (Fann, W.E., Karacan, I., Pokorney, A.D., & Williams, R.L., 1978). Dopamine systems arise from two primary midbrain clusters, the ventral tegmental area and the substantia nigra which have discrete projections to mesolimbic, mesocortical, and striatal regions of the brain. The neurochemical anatomy of dopamine differs in cortical and striatal regions, and it appears that dopamine concentration, receptor regulation, and D2 receptor density varies greatly between striatal and extrastriatal regions (Jones, & Pilowsky, 2002). It is supposed that the therapeutic actions of antipsychotic drugs are exerted via the mesolimbic and mesocortical dopamine pathways in the brain (Hyman et. al., 1995). According to the dopamine hypothesis for schizophrenia, limbic D2 receptor blockade is essential for a drug to have antipsychotic activity. It is believed that the therapeutic actions of antipsychotic drugs are exerted via the mesolimbic and mesocortical dopamine pathways in the brain by acting as D2 receptor antagonists (Hyman et al.)Without exception, effective antipsychotic drugs have at least some degree of antagonism of the dopamine D2 receptors. (Breier, A., Tran, P. Clozapine :: Drugs Science Medical Psychology Essays Clozapine Clozapine is an atypical anti-psychotic medication that acts as an antagonist (a drug that blocks the effects of a neurotransmitter), thus producing an inhibitory effect, at a variety of neurotransmitter receptors in the brain. The exact site and action by which Clozapine produces its therapeutic effects is difficult to locate due to the complexity of its interactions with several neurotransmitters. It is believed that the two key neurotransmitters that Clozapine interacts with are serotonin (5-HT) and dopamine (DA), particularly at 5-HT2, D2, and D4 receptors (Brenner, H.D., BÃâ€"ker, W., Genner, R., 2001). Serotonin is a biogenic amine derived from tryptophan that generally produces inhibitory postsynaptic potentials (meaning that it causes hyperpolarization of the postsynaptic cell membrane).Functions of serotonin include regulation of sleep and emotions. Dopamine is a monoamine catecholamine derived from the amino acid tyrosine. Receptors that bind dopamine are termed dopaminergic. Dopamine is one of the principal modulatory neurotransmitters in the brain and may have inhibitory or excitatory effects depending upon the response of the postsynaptic receptor (King, www.indstate.edu). Clozapine also has effects at muscarinic M1 receptors, adrenergic receptors, cholinergic receptors, and histamine receptors (Brenner, et al). There are many disputed theories of the biological causes of schizophrenia. One of the most prominent ideas is the "dopamine hypothesis." The dopamine hypothesis attributes hyperdopaminergic function, meaning an excess of dopamine at certain synapses, as a possible cause of schizophrenia (Fann, W.E., Karacan, I., Pokorney, A.D., & Williams, R.L., 1978). Dopamine systems arise from two primary midbrain clusters, the ventral tegmental area and the substantia nigra which have discrete projections to mesolimbic, mesocortical, and striatal regions of the brain. The neurochemical anatomy of dopamine differs in cortical and striatal regions, and it appears that dopamine concentration, receptor regulation, and D2 receptor density varies greatly between striatal and extrastriatal regions (Jones, & Pilowsky, 2002). It is supposed that the therapeutic actions of antipsychotic drugs are exerted via the mesolimbic and mesocortical dopamine pathways in the brain (Hyman et. al., 1995). According to the dopamine hypothesis for schizophrenia, limbic D2 receptor blockade is essential for a drug to have antipsychotic activity. It is believed that the therapeutic actions of antipsychotic drugs are exerted via the mesolimbic and mesocortical dopamine pathways in the brain by acting as D2 receptor antagonists (Hyman et al.)Without exception, effective antipsychotic drugs have at least some degree of antagonism of the dopamine D2 receptors. (Breier, A., Tran, P.

Alzheimers Disease Essay -- Alzheimers Disease Essays

In this day and age, it seems as though almost everyone has experience a loved one taken away form a very serious disease known as Alzheimer’s disease. Alzheimer’s disease is unbelievably devastating for everyone affected by it. This disease is causing major economical problems such as less occupancy in the nursing homes, and hospitals due to the rising population of elderly men and women being diagnosed with it everyday. Because there is not yet a cure for this disease and the percent of the population being diagnosed keeps rapidly rising, more time and money needs to go towards Alzheimer’s research. Alzheimer’s disease is a form of dementia which is a brain disorder that impairs mental functioning. Dementia attacks the part of the brain which controls memory, language, and thought. It makes everyday tasks like remembering to brushing your teeth, or to pay your bills next to impossible to do, which is why so many people who are diagnosed with this disease are in complete care. This disease has different phases, the first being slight forgetfulness and then the persons emotions may heighten as well as language impairment, violent outbursts, loss of bladder control and from there it keeps getting worse until complete dysfunction of the brain occurs and eventually death, which most of the time is the result of infection. Alzheimer’s disease got its name from the German doctor, Dr. Alois Alzheimer. In 1906, he noticed that there were abnormal clumps and bundles of fibers i...

Themes Of Frankenstein Essay -- essays research papers fc

Themes of Frankenstein   Ã‚  Ã‚  Ã‚  Ã‚  There are many different themes expressed in Mary Shelly's Frankenstein. They vary with each reader but basically never change. These themes deal with the education that each character posses, the relationships formed or not formed in the novel, and the responsibility for ones own actions. This novel even with the age still has ideas that can be reasoned with even today.   Ã‚  Ã‚  Ã‚  Ã‚  Each character has their own educational background, which in turn has a large effect to the way they react and deal with the issues that face them. One example of this is Victor Frankenstein; he took his education into his own hands. When he went to the University of Inglostaldt he intoxicated himself with the sciences so deeply that he never imagined the morality of what he was doing. He stayed so involved and focused on his experiments that he did not take into mind what could happen because of the size of the creature. Victor said: Although I possessed the capacity of bestowing animation, yet to prepare a frame for the reception of it, with all its intricacies of fibres, muscles and veins, still remained a work of inconceivable difficulty… As the minuteness of the parts formed a great hindrance to my speed, I resolved, contrary to my first intention, to make the being of a gigantic stature; that is to say about eight feet in height, and proportionately large. (52) But when he finished the science that brought him there has also scared him away. On page 56 Victor tells about the creation and what it meant to him and what happened when life filled the body: I had worked hard for nearly two years, for the sole purpose of infusing life into an inanimate body. For this I had deprived myself of rest and health. I had desired it with an ardour that far exceeded moderation; but now that I had finished, the beauty of the dream vanished and breathless horror and disgust filled my heart. (56) Victor's education has leaded him to be able to create a monster but not let him fully think out the havoc that might be unleashed. His education only let him create a monster but never taught him how to care for it; this ends up resulting in the loss of innocent lives.   Ã‚  Ã‚  Ã‚  Ã‚  This theme is also present when looking at the creation's education. He received most of his education hands on, by hi... ...inking how his discoveries can help mankind but not how the monster could be a burden to society. When the creature talks to Victor, he starts to see the responsibility that he owes the creature. Victor agrees to start a companion for the creature but finally thinks about what could happen with the two creations together. He tears up the second creation. This shows that he is taking some of the responsibility to the society: …For the first time, the wickedness of my promise burst upon me; I shuddered to think that the future ages might curse me as their pest, whose selfishness had not hesitated to bury its own peace at the price, perhaps, of the existence of the whole human race. (159) Victor realizes he is truly responsible towards society and by tearing up the second creation upholds that responsibility.   Ã‚  Ã‚  Ã‚  Ã‚  The novel points out to the reader that education, relationships, and responsibility are important traits to posses, even to the people in the 1800's to present day. Frankenstein is a classic novel that will live on for centuries to come as well as the message deep inside. Bibliography Shelly, Mary. Frankenstein. New York: Penguin, 1983.

A Christmas Carol

Charles Dickens’s A Christmas Carol illustrates many themes of the Victorian era. Poverty, charity and greed are major themes of this work. This essay highlights examples of these themes as portrayed by Dickens.Poverty was a striking characteristic of Victorian England, especially noticeable in the cities.   The population grew exponentially during the nineteenth century so it is a very practical suggestion offered by the Ghost of Christmas Present when he observes of Tiny Tim, â€Å"If he be like to die, he had better do it, and decrease the surplus population†(Dickens).As a result of overpopulation, there was huge pressure on housing which in turn led to poor sanitary conditions and rampant destitution. ‘The ways were foul and narrow, the shops and houses wretched; the people half-naked, drunken, slipshod, ugly. Alleys and archways, like so many cesspools, disgorged their offences of smell, and dirt† (Dickens).Children from lower class families suffered hugely as a result of poverty during this era.Families sometimes had to turn their children out because they couldn’t afford to keep them. In Stave Two, Scrooge’s sister Fan says, â€Å"Father is so much kinder than he used to be, thatI was not afraid to ask him once more if you might come home and he said yes you should† (Dickens). Children all too often, were the open faces of poverty during this era. At the end of Stave Three, the Ghost of Christmas Future shows Scrooge his legacy as a result of his greed i.e. two very destitute children. â€Å"The boy is Ignorance. The girl is Want† (Dickens).With huge poverty, came the birth of social conscience amongst the middle and upper classes. Many charities that exist today have roots in the Victorian era. Scrooge gets a sudden attack of charity after seeing himself alone as a child.He says, â€Å"There was a boy singing a Christmas carol at my door last night. I should like to have given him something, thatà ¢â‚¬â„¢s all† (Dickens). Philanthropy also, was a growing practice and to die without leaving money to the less fortunate especially during such times of poverty, was almost unthinkable. â€Å"What has he done with his money?† asked a red-faced gentleman. â€Å"I haven’t heard†, said the man, â€Å"left it to his company, perhaps. He hasn’t left it to me. That’s all I know† (Dickens).Christmas time was the perfect opportunity to illustrate the charitable obligation of the rich to the poor.   Christmas time stressed traditional values of neighborliness, charity and good will.   Accordingly, Scrooge buys the largest turkey he can find for the Cratchits in order to change the course of the future.In Stave Two, the Ghost of Christmas Present shows Scrooge a scene from Mr Fezziwig’s Ball in order to illustrate that happiness and cheer can be given to people without costing a fortune. Scrooge concludes, â€Å"The happiness he giv es is quite as great as if it cost a fortune† (Dickens).Whilst a lot of charity and philanthropy no doubt resulted from an honest desire to ease the suffering of the poor, guilt also played its part. Many assuaged their guilt by giving to charity but they also didn’t want to waste charity on the undeserving. If we were giving Scrooge the benefit of the doubt, perhaps this is why he chose not to give his money away. â€Å"No beggars implored him to bestow a trifle† (Dickens).The opposite of charity is greed. The Ghost of Christmas Present says, â€Å"There is nothing on which it is as hard as poverty, and there is nothing on it professes to condemn with such severity as the pursuit of wealth† (Dickens). Like Scrooge, if one dedicated his life only to the accumulation of wealth, he was likely to pay for it in death. â€Å"It’s likely to be a very cheap funeral† said the businessman, â€Å"for upon my life I don’t know of anybody to go t o it!†(Dickens)Victorian society norms dictated that it was literally unthinkable to be greedy. In Stave One, Scrooge is visited by men asking for donations. â€Å"What shall I put you down for?† asks the man. Scrooge replies, â€Å"Nothing!† The man misunderstands Scrooge, â€Å"You wish to be anonymous?† The church played an important role in imparting the virtues of charity and the consequences of greed. The Ghost of Christmas Present says to Scrooge, â€Å"It may be that in the sight of heaven, you are more worthless and less fit to live than millions like this poor man’s child† (Dickens).

Aig Case Solution

[pic] LEADERSHIP AT AIG: DOES STYLE MATTER? Case Overview This case deals with executive leadership styles. In particular, this case deals with American International Group, the world’s insurance company, and its CEO Maurice â€Å"Hank† Greenberg. Greenberg, an autocratic leader, was recently deposed by his board of directors after problems emerged regarding possible earning manipulation. It describes his leadership style, reasons his two sons (former employees) left the company, and Martin Sullivan, Greenberg’s successor. Like his former boss, Sullivan micromanages the organization, but is well liked by employees. Teaching Objectives ) To show students the impact of autocratic leadership style on employees. 2) To distinguish between micro and participative management in an organization. 3) To introduce the concept of leadership succession and its effects on organizations. Purpose This case presents various leadership styles used by CEOs. It suggests that executi ves who uses a more participative leadership style are more likely to create an effective employee workplace. Relationship to Part 4 The relationship of this case to part 4: leadership and its styles, possible motivation of employees through style, the encouragement of team work and communication.This case can draw on various theories in all four chapters of Part 4. Questions Question 1. AIG Chairman and CEO Maurice â€Å"Hank† Greenberg was considered an autocratic leader and a micromanager by many employees; yet the company grew dramatically during his reign as CEO. Does leadership style matter as long as the company performs well and shareholders are satisfied with their return on investment? Answer Leadership does matter. A company may perform well, and shareholders may be satisfied with their return on investment, but on another level this style of leadership may do irreparable hard to employee effectiveness and morale.Eventually autocratic leadership will take it toll o n the organization and its ability to operate effectively. Question 2. AIG’s new CEO Sullivan has been labeled a micromanager, but with a more pleasant personality. Can he, as a micromanager, develop a more participative leadership style? How? Answer It may be very difficult for a manager/leader to change his management and leadership style. There is indeed a time and place for autocratic leadership (e. g. , when time is limited), but we know that participative leadership often produces better results.While it is often difficult for executives (managers) to let go and delegate more to underlings, AIG’s new CEO Sullivan can learn to develop a more participative leadership style. He must begin to create more teams, motivate more employees to participate in corporate activities, and communicate more effective. In part, his micromanagement style may be a result of following Greenberg’s lead. As Sullivan becomes more comfortable in his new role, he should be able to delegate more effectively, especially if he is to deal with more strategic corporate issues. Leadership is a very important aspect that is prominent in our professional life.If a team is led by an effective good leader, the team is more likely to perform well as per the expectations of the project. On the other hand, if the leader is a person who just issues orders and commands the tasks to be done, the team is demotivated and does tend to perform less than they actually can. If you are a working professional, you might have got an idea about the types of leadership styles and techniques. The working and managing style of a leader plays a very important part in making the leadership role effective. There are various managers who adopt different leadership styles and methods for employee and process management.Each leadership style has its own methods, behavior, effects, and aspects. Participative leadership is a very significant leadership style that is most beneficial to employees, managers alike. What is Participative Leadership Style? As the name suggests, this leadership style relates to a method of having things done by involving team members in goals setting and decision making. Since there is an involvement of team members and employees in being a part of the management, this is by far the most useful management style in the business world.Though there is employee participation, the leader is handed over the responsibility of taking the final decision. In this corporate leadership style, the manager works with the team and not over the team, which is why he can determine even the minutest errors of the processes that have to be executed. Advantages of Participative Leadership Style There are many apparent and proven advantages of the participative leadership practice. A very important advantage is that employees and team members are motivated to work, because they realize that the management is ready to consider their suggestions and viewpoints.And if t here is such employee motivation, the team members happen to work more effectively than expected. This eventually has a good effect on the company's revenue. Secondly, since the manager becomes like a team member and takes part in the decision-making process, it has a good impact on teamwork. Thirdly, as more than one minds are working on goal setting and decision making, there is an all-round analysis of the possibilities of failures. Therefore, the manager can majorly rule out any errors and possibilities of failures in the project.You can say that there is a broader assessment of the situation which is to be worked upon. The result of participative leadership can also be effective decisions suggested by experts in the respective field. In this kind of business leadership, the manager does not only involve team members, but can also take guidance from his peers. One of the most suitable participative leadership examples can be when a manager divides project work in his team member s including himself, discusses the project requirements and expectations with the team leader and other members, and then they work on it collectively.Participative leadership surely increases employee satisfaction, reduces the workload of managers, and creates better teamwork; with all this eventually contributing to good worLeadership is a very important aspect that is prominent in our professional life. If a team is led by an effective good leader, the team is more likely to perform well as per the expectations of the project. On the other hand, if the leader is a person who just issues orders and commands the tasks to be done, the team is demotivated and does tend to perform less than they actually can.If you are a working professional, you might have got an idea about the types of leadership styles and techniques. The working and managing style of a leader plays a very important part in making the leadership role effective. There are various managers who adopt different leaders hip styles and methods for employee and process management. Each leadership style has its own methods, behavior, effects, and aspects. Participative leadership is a very significant leadership style that is most beneficial to employees, managers alike. What is Participative Leadership Style?As the name suggests, this leadership style relates to a method of having things done by involving team members in goals setting and decision making. Since there is an involvement of team members and employees in being a part of the management, this is by far the most useful management style in the business world. Though there is employee participation, the leader is handed over the responsibility of taking the final decision. In this corporate leadership style, the manager works with the team and not over the team, which is why he can determine even the minutest errors of the processes that have to be executed.Advantages of Participative Leadership Style There are many apparent and proven advant ages of the participative leadership practice. A very important advantage is that employees and team members are motivated to work, because they realize that the management is ready to consider their suggestions and viewpoints. And if there is such employee motivation, the team members happen to work more effectively than expected. This eventually has a good effect on the company's revenue. Secondly, since the manager becomes like a team member and takes part in the decision-making process, it has a good impact on teamwork.Thirdly, as more than one minds are working on goal setting and decision making, there is an all-round analysis of the possibilities of failures. Therefore, the manager can majorly rule out any errors and possibilities of failures in the project. You can say that there is a broader assessment of the situation which is to be worked upon. The result of participative leadership can also be effective decisions suggested by experts in the respective field. In this kind of business leadership, the manager does not only involve team members, but can also take guidance from his peers.One of the most suitable participative leadership examples can be when a manager divides project work in his team members including himself, discusses the project requirements and expectations with the team leader and other members, and then they work on it collectively. Participative leadership surely increases employee satisfaction, reduces the workload of managers, and creates better teamwork; with all this eventually contributing to good wor Question 3. Greenberg named his son Evan as the heir apparent. Yet, Greenberg never set a departure date.Should a good leader set a date for departure once a successor is named? Why? Why not? Answer Most of the time succession in organizations creates a host of problems. On the one hand, incumbent CEOs are less than willing to give up the power and prestige that accompany their position. On the other hand, the successor (heir ap parent) may be eager to assume the top position. If the successor has to wait too long for the top leadership position, he may decide to seek out a top level position in another company, and the company may lose a unique opportunity for a smooth leadership transition.CEOs should set a deadline for their departure so that all stakeholders are informed which can facilitate a change in leadership. LEADERSHIP AT AIG: Does Style Matter Question 1: AIG Chairman and CEO Maurice â€Å"Hank† Greenberg was consider an autocraticleader and micromanager by many employee, yet the company grew dramaticallyduring his reign as CEO. Does leadership style matter as long as the company  performs well and shareholders are satisfied with their return on investment?Leader is a person who led people towards to the common goal. In the process of managing anorganization, I believe leadership style is the one of important factor in deciding the performanceof the company. Leader’s style of lea dership changes according to the situation of the company. Based on managerial grid concept by Robert Blake and Jane Mouton, there are five style of  leadership that combine different degrees of concern for production and concern for people andthis five styles of leadership is shown in figure 1 below.In the case study, CEO Maurice â€Å"Hank†was more concern of production compare to the concern for people and of course, this kind of  leadership will produce good performance. That is why Maurice â€Å"Hank† able to bring thecompany from midlevel insurance company becomes the international company and give thesatisfaction towards the shareholders. However, to sustain the company at the same level,Maurice â€Å"Hank† kinds of leadership will causes the performance of the company to be declined  because lack of concern for people will affect the workers performance and this result would notsatisfy the shareholders.The workers in AIG will become less motivated due the pressure given  by the management practice by Maurice â€Å"Hank†. This style of leadership by Maurice â€Å"Hank† fallunder style of leadership â€Å"produce or perish† as shown in figure 1. As conclusion, the style of  leadership is the key player in determine the successful of a company. Question 2: AIG’s new CEO Sullivan has been labeled a micromanager, but with a more  pleasant personality. Can he as a micromanager, develop more participativeleadership style?How? Participative leadership style is defined as  leader  who involves his subordinatesin the process of   making decision such as setting goal, solving  problemand others, but retains the final  decision making  authority. By referring the case study, CEO Sullivan can develop more participative style leadership by segregating the works to his subordinates in order to enabling his subordinate to  play their role in the organizations and indirectly developing the trust between himself with his subordinate.This action will enable the workers especially his subordinate to create a feeling of  self-belonging towards the company. Once the trust is there, he should implement groupdiscussion or brainstorming before making any decision but while conducting the groupdiscussion, he should be the person who get all the buy-in from the group members. In the groupdiscussion, he should use his authority in deciding the decision and this kind of ways in making decision helps his subordinate to accept and thus implement the action with full enthusiasm.Besides that, he should often communicate with his workers through out the three layer of  management such as having chitchat with the workers during teatime in order to understand the needs of workers in the company and thus raise his level of concern towards people. As he developing his understanding towards his workers, he can easily delegate the works that suit the workers best and as the result, company p erformance increases and building the security towards the investor and the people in the company especially shareholders. Question 3:Greenberg named his son Evan as the heir apparent. Yet Greenberg never set adeparture date. Should a good leader set a date for departure? When should hename a successor? Every thing that starts must have an end. Leaders also have his own starts and ends in hisera of leadership. For my point of view, a good leader should set a date for his departure. This is  because a leader knows better his own limitation and capabilities. A leader should alsounderstand his abilities and weakness in managing the organization as the time passes by.I  believe that every leader would like to leave his position without tarnishing his reputation andintegrity. However, it is not wise action to take if he announced his name of successor long  before his departure date for the position. This is because the successor required a time for him toadapt with the changes in role and the leader himself required time to hand over and coaching hisnew successor to take over his positions but how long is the duration for the this process, it alldepends on the successor himself.Normally, a leader had already started to look for hissuccessor long before he announced his departure date. This is because to identify a good leader  does not happen in a single day. It will consume so much time and effort for leader to be bornand as been mention by Richard Arvey, a human resources and industrial relations professor inthe Carlson School of Management, â€Å"While environmental influences determine many of our  leadership behaviors and the roles we obtain, our genes still exert a sizable influence over  whether we will become leaders. That is why, I do believe that leadership is both inherited andacquired. As conclusion, a good leader always think three steps ahead, that’s why it is importantfor a good leader to prepare for his succession plan American International Group From Wikipedia, the free encyclopedia Jump to: navigation, search â€Å"AIG† redirects here. For other uses, see AIG (disambiguation). |American International Group, Inc. |[pic] | |Type |Public | |Traded as |NYSE:  AIG | | |S&P 500 Component | |Industry |Insurance, Financial services | |Founded |Shanghai, China (1919)[1] | |Founder(s) |Cornelius Vander Starr | |Headquarters |American International Building, New York City, | | |New York, United States | |Area served |Worldwide | |Key people |Bob Benmosche | | |(President & CEO) | | |Robert Miller (Chairman)[2] | |Products |Insurance annuities, mutual funds | |Revenue |[pic]US$ 77. 301 billion (2010)[3] | |Operating income |[pic]US$ 17. 936 billion (2010)[3] | |Net income |[pic]US$ 7. 786 billion (2010)[3] | |Total assets |[pic]US$ 683. 443 billion (2010)[3] | |Total equity |[pic]US$ 113. 239 billion (2010)[3] | |Employees |96,000 (2010)[3] | |Website |AIG. com | American International Group, Inc. NYSE:  AIG) or AIG is an American multinational insurance corporation. Its corporate headquarters is located in the American International Building in New York City. The British headquarters office is on Fenchurch Street in London, continental Europe operations are based in La Defense, Paris, and its Asian headquarters office is in Hong Kong. According to the 2011 Forbes Global 2000 list, AIG was the 29th-largest public company in the world. [4][5] It was listed on the Dow Jones Industrial Average from April 8, 2004 to September 22, 2008. AIG suffered from a liquidity crisis when its credit ratings were downgraded below â€Å"AA† levels in September 2008.The United States Federal Reserve Bank on September 16, 2008 created an $85  billion credit facility to enable the company to meet increased collateral obligations consequent to the credit rating downgrade, in exchange for the issuance of a stock warrant to the Federal Reserve Bank for 79. 9% of the equity of AIG. The Federal Re serve Bank and the United States Treasury by May 2009 had increased the potential financial support to AIG, with the support of an investment of as much as $70  billion, a $60  billion credit line and $52. 5  billion to buy mortgage-based assets owned or guaranteed by AIG, increasing the total amount available to as much as $182. 5  billion. [6][7] AIG subsequently sold a number of its subsidiaries and other assets to pay down loans received, and continues to seek buyers of its assets. Contents | |  [hide]   | |1 History | |2 Business | |2. 1 Holdings | |2. 2 Auto insurance | |2. 3 Travel Insurance | |3 Financial crisis | |3. 1 Chronology of September 2008 liquidity crisis | |3. 2 Federal Reserve bailout | |3. Additional bailouts of 2008 | |3. 4 Counterparty controversy | |3. 5 Post-bailout expenditures | |3. 6 Settlement of credit default swaps | |3. 7 Sales of assets | |3. 8 Record losses | |3. 2009 employee bonus payments | |3. 10 Manchester United Sponsorshi p | |3. 11 Share buyback | |4 Litigation | |4. 1 Accounting fraud claims | |5 Corporate governance | |5. Board of directors | |6 See also | |7 Notes | |8 References and further reading | |9 External links | [edit] History [pic] [pic] The American International Building in Lower Manhattan. AIG history dates back to 1919, when Cornelius Vander Starr established an insurance agency in Shanghai, China.Starr was the first Westerner in Shanghai to sell insurance to the Chinese, which he continued to do until AIG left China in early 1949—as Mao Zedong led the advance of the Communist People's Liberation Army on Shanghai. [8][9] Starr then moved the company headquarters to its current home in New York City. [10] The company went on to expand, often through subsidiaries, into other markets, including other parts of Asia, Latin America, Europe, and the Middle East. [11] In 1962, Starr gave management of the company's lagging U. S. holdings to Maurice R. â€Å"Hank† Greenberg , who shifted its focus from personal insurance to high-margin corporate coverage. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries.Using brokers, AIG could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. In 1968, Starr named Greenberg his successor. The company went public in 1969. [12] Beginning in 2005, AIG became embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission, U. S. Justice Department, and New York State Attorney General's Office. Greenberg was ousted amid an accounting scandal in February 2005; he is still fighting civil charges being pursued by New York state. [13][14][15] The New York Attorney General's investigation led to a $1.   billion fine for AIG and criminal charges for some of its executives. [16] Greenberg was succeeded as CEO by Martin J. Sullivan, who had begun his career at AIG as a clerk in its London office in 1970. [17] On June 15, 2008, after disclosure of financial losses and subsequent to a falling stock price, Sullivan resigned and was replaced by Robert B. Willumstad, Chairman of the AIG Board of Directors since 2006. Willumstad was forced by the US government to step down and was replaced by Edward M. Liddy on September 17, 2008. [18] AIG's board of directors named Robert Benmosche CEO on August 3, 2009 to replace Mr. Liddy, who earlier in the year announced his retirement. [19] [edit] Business [edit] HoldingsFurther information: Holdings of American International Group In the United States, AIG is the largest underwriter of commercial and industrial insurance, and AIG acquired American General Life Insurance in August 2001. [20] [edit] Auto insurance AIG sold auto insurance policies through its subsidiary unit, AIG Direct (aka aigdirect. com). The policies they offered included insurance for private au tomobiles, motorcycles, recreational vehicles and commercial vehicles. AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749  million. [21] With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance. 22][23] In April 2009 it was announced that AIG was selling the 21st Century Insurance subsidiary to Farmers Insurance Group for $1. 9  billion. [24] [edit] Travel Insurance Main article: AIG Travel Guard AIG sells travelers insurance internationally through Travel Guard, headquartered in Stevens Point, Wisconsin. [edit] Financial crisis Further information: Subprime mortgage crisis,  Financial crisis of 2007–2010,  and  Liquidity crisis of September 2008 [edit] Chronology of September 2008 liquidity crisis On September 16, 2008, AIG suffered a liquidity crisis following the downgrade of its credit rating. Industry p ractice permits firms with the highest credit ratings to enter swaps without depositing collateral with their trading counter-parties.When its credit rating was downgraded, the company was required to post additional collateral with its trading counter-parties, and this led to an AIG liquidity crisis. AIG's London unit sold credit protection in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) that had by that time declined in value. [25] The United States Federal Reserve Bank announced the creation of a secured credit facility of up to US$85  billion, to prevent the company's collapse by enabling AIG to meet its obligations to deliver additional collateral to its credit default swap trading partners. The credit facility provided a structure to loan as much as US$85  billion, secured by the stock n AIG-owned subsidiaries, in exchange for warrants for a 79. 9% equity stake, and the right to suspend dividends to previously issued common and preferre d stock. [17][26][27] AIG announced the same day that its board accepted the terms of the Federal Reserve Bank's rescue package and secured credit facility. [28] This was the largest government bailout of a private company in U. S. history, though smaller than the bailout of Fannie Mae and Freddie Mac a week earlier. [29][30] AIG's share prices had fallen over 95% to just $1. 25 by September 16, 2008, from a 52-week high of $70. 13. [citation needed] The company reported over $13. 2  billion in losses in the first six months of the year. 31][32] The AIG Financial Products division headed by Joseph Cassano, in London, had entered into credit default swaps to insure $441  billion worth of securities originally rated AAA. Of those securities, $57. 8  billion were structured debt securities backed by subprime loans. [33] CNN named Cassano as one of the â€Å"Ten Most Wanted: Culprits† of the 2008 financial collapse in the United States. [34] As Lehman Brothers (the largest bankruptcy in U. S. history at that time) suffered a catastrophic decline in share price, investors began comparing the types of securities held by AIG and Lehman, and found that AIG had valued its Alt-A and sub-prime mortgage-backed securities at 1. 7 to 2 times the values used by Lehman which weakened investors' confidence in AIG. 31] On September 14, 2008, AIG announced it was considering selling its aircraft leasing division, International Lease Finance Corporation, to raise cash. [31] The Federal Reserve hired Morgan Stanley to determine if there are systemic risks to a financial failure of AIG, and asked private entities to supply short-term bridge loans to the company. In the meantime, New York regulators allowed AIG to borrow $20  billion from its subsidiaries. [35][36] At the stock market's opening on September 16, 2008, AIG's stock dropped 60 percent. [37] The Federal Reserve continued to meet that day with major Wall Street investment firms, hoping to broker a deal for a non-governmental $75  billion line of credit to the company. 38] Rating agencies Moody's and Standard and Poor downgraded AIG's credit ratings on concerns over likely continuing losses on mortgage-backed securities. The credit rating downgrade forced the company to deliver collateral of over $10  billion to certain creditors and CDS counter-parties. [39] The New York Times later reported that talks on Wall Street had broken down and AIG may file for bankruptcy protection on Wednesday, September 17. [40] Just before the bailout by the US Federal Reserve, AIG former CEO Maurice (Hank) Greenberg sent an impassioned letter to AIG CEO Robert B. Willumstad offering his assistance in any way possible, ccing the Board of Directors. His offer was rebuffed. [41] [edit] Federal Reserve bailoutOn the evening of September 16, 2008, the Federal Reserve Bank's Board of Governors announced that the Federal Reserve Bank of New York had been authorized to create a 24-month credit-liquidity faci lity from which AIG could draw up to $85  billion. The loan was collateralized by the assets of AIG, including its non-regulated subsidiaries and the stock of â€Å"substantially all† of its regulated subsidiaries, and with an interest rate of 850 basis points over the three-month London Interbank Offered Rate (LIBOR) (i. e. , LIBOR plus 8. 5%). In exchange for the credit facility, the U. S. government received warrants for a 79. 9 percent equity stake in AIG, with the right to suspend the payment of dividends to AIG common and preferred shareholders. [17][27] The credit facility was created under the auspices of Section 13(3) of the Federal Reserve Act. 27][42][43] AIG's board of directors announced approval of the loan transaction in a press release the same day. The announcement did not comment on the issuance of a warrant for 79. 9% of AIG's equity, but the AIG 8-K filing of September 18, 2008, reporting the transaction to the Securities and Exchange Commission stated t hat a warrant for 79. 9% of AIG shares had been issued to the Board of Governors of the Federal Reserve. [17][28][44] AIG drew down US$ 28  billion of the credit-liquidity facility on September 17, 2008. [45] On September 22, 2008, AIG was removed from the Dow Jones Industrial Average. [46] An additional $37. 8  billion credit facility was established in October.As of October 24, AIG had drawn a total of $90. 3  billion from the emergency loan, of a total $122. 8  billion. [47] Maurice Greenberg, former CEO of AIG, on September 17, 2008, characterized the bailout as a nationalization of AIG. He also stated that he was bewildered by the situation and was at a loss over how the entire situation got out of control as it did. [48] On September 17, 2008, Federal Reserve Board chair Ben Bernanke asked Treasury Secretary Henry Paulson join him, to call on members of Congress, to describe the need for a congressionally authorized bailout of the nation's banking system. Weeks later, Congress approved the Emergency Economic Stabilization Act of 2008.Bernanke said to Paulson on September 17, â€Å"We can’t keep doing this. Both because we at the Fed don’t have the necessary resources and for reasons of democratic legitimacy, it's important that the Congress come in and take control of the situation. â€Å"[49] [edit] Additional bailouts of 2008 From mid September till early November, AIG's credit-default spreads were steadily rising, implying the company was heading for default. [50][51] On November 10, 2008, the U. S. Treasury announced it would purchase $40  billion in newly issued AIG senior preferred stock, under the authority of the Emergency Economic Stabilization Act's Troubled Asset Relief Program. 52][53][54] The FRBNY announced that it would modify the September 16 secured credit facility; the Treasury investment would permit a reduction in its size from $85  billion to $60  billion, and that the FRBNY would extend the life of the facility from three to five years, and change the interest rate from 8. 5% plus the three-month London interbank offered rate (LIBOR) for the total credit facility, to 3% plus LIBOR for funds drawn down, and 0. 75% plus LIBOR for funds not drawn, and that AIG would create two off- balance-sheet Limited Liability Companies (LLC) to hold AIG assets: one to act as an AIG Residential Mortgage-Backed Securities Facility and the second to act as an AIG Collateralized Debt Obligations Facility. [52][54]Federal officials said the $40  billion investment would ultimately permit the government to reduce the total exposure to AIG to $112  billion from $152  billion. 52] On December 15, 2008, the Thomas More Law Center filed suit to challenge the Emergency Economic Stabilization Act of 2008, alleging that it unconstitutionally promotes Islamic law (Sharia) and religion. The lawsuit was filed because AIG provides Takaful Insurance Plans, which, according to the company, avoid investments a nd transactions that are†un-Islamic†. [55][56] As of January 2012, TARP had about $50 billion invested in AIG according to one report. Break even for the government was figured at $28. 73 a share v. then-current share price of about $25. [57] [edit] Counterparty controversy AIG was required to post additional collateral with many creditors and ounter-parties, touching off controversy when over $100  billion was paid out to major global financial institutions that had previously received TARP money. While this money was legally owed to the banks by AIG (under agreements made via credit default swaps purchased from AIG by the institutions), a number of Congressmen and media members expressed outrage that taxpayer money was going to these banks through AIG. [58] In January, 2010, a document known as â€Å"Schedule A – List of Derivative Transactions† was released to the public, against the wishes of the New York Fed. It listed many of the insurance deals tha t AIG had with various other parties, such as Goldman Sachs, Societe Generale, Deutsche Bank, and Merrill Lynch. 59][60] Had AIG been allowed to fail in a controlled manner through bankruptcy, bondholders and derivative counterparties (major banks) would have suffered significant losses, limiting the amount of taxpayer funds directly used. Fed Chairman Ben Bernanke argued: â€Å"If a federal agency had [appropriate authority] on September 16, [2008], they could have been used to put AIG into conservatorship or receivership, unwind it slowly, protect policyholders, and impose haircuts on creditors and counterparties as appropriate. That outcome would have been far preferable to the situation we find ourselves in now. â€Å"[61] [edit] Post-bailout expenditures The week following the September bailout, AIG employees and distributors participated in a California retreat which cost $444,000 and featured spa treatments, banquets, and golf outings. 62][63] It was reported that the trip was a reward for top-performing life-insurance agents planned before the bailout. [64] Less than 24 hours after the news of the party was first reported by the media, it was reported that the Federal Reserve had agreed to give AIG an additional loan of up to $37. 8  billion. [65] AP reported on October 17 that AIG executives spent $86,000 on a previously scheduled English hunting trip. News of the lavish spending came just days after AIG received an additional $37. 8  billion loan from the Federal Reserve, on top of a previous $85  billion emergency loan granted the month before. Regarding the hunting trip, the company responded, â€Å"We regret that this event was not canceled. [66] An October 30, 2008 article from CNBC reported that AIG had already drawn upon $90  billion of the $123  billion allocated for loans. [67] On November 10, 2008, just a few days before renegotiating another bailout with the US Government for $40  billion, ABC News reported that AIG spent $34 3,000 on a trip to a lavish resort in Phoenix, Arizona. [68] [edit] Settlement of credit default swaps On October 22, 2008, those creditors of Lehman Brothers who bought credit default swaps to hedge them against Lehman bankruptcy settled those accounts. The net payments were $5. 2  billion[69] even though initial estimates of the amount of the settlement were between $100  billion and $400  billion. 70] By December 2008, AIG had paid at least $18. 7  billion to various financial institutions, including Goldman Sachs and Societe Generale to retire obligations related to credit default swaps (CDS). As much as $53. 5  billion related to swap payouts are part of the bailout. [71] On March 15, 2009, under mounting pressure from Congress and after consultation with the Federal Reserve, AIG disclosed a list of major recipients of collateral postings and payments under credit default swaps, guaranteed investment agreements, and securities lending agreements. [72] Below is data fr om one of the charts AIG released, representing only a portion of the total payouts, over a period of a few months. AIG collateral postings to credit default swap counterparties, from the period September 16, 2008 to | |December 31, 2008[73] | |Counterparty |US $ posted |Counterparty |US $ posted | |Societe Generale |$4,100,000,000 |Deutsche Bank |$2,600,000,000 | |Goldman Sachs |$2,500,000,000 |Merrill Lynch |$1,800,000,000 | |Calyon |$1,100,000,000 |Barclays |$900,000,000 | |UBS |$800,000,000 |DZ Bank |$700,000,000 | |Wachovia |$700,000,000 |Rabobank |$500,000,000 | |KFW |$500,000,000 |JPMorgan |$400,000,000 | |Banco Santander |$300,000,000 |Danske Bank |$200,000,000 | |Reconstruction Finance |$200,000,000 |HSBC Bank |$200,000,000 | |Corporation[74] | | | |Morgan Stanley |$200,000,000 |Bank of America |$200,000,000 | |Bank of Montreal |$200,000,000 |Royal Bank of Scotland |$200,000,000 | |Other (unknown) |$4,100,000,000 | | | [edit] Sales of assets AIG since September 2008 has ma rketed its assets to pay off its government loans. A global decline in the valuation of insurance businesses, and the weakening financial condition of potential bidders, has challenged its efforts. If the U. S. government decides to continue to protect the company from falling into bankruptcy, it may have to take the assets itself in exchange for the loans, or offer further direct financial support. 75] As of September 6, 2009, The Wall Street Journal reported that Pacific Century Group had agreed to pay $500  million for a part of American International Group's asset management business, and that they also expected to pay an additional $200  million to AIG in carried interest and other payments linked to future performance of the business. [76] Also in 2009, AIG sold its operations in Colombia to Ecuador's Banco del Pichincha. On March 1, 2010, insurance company Prudential confirmed that it was in advanced negotiations to buy the Asian operations of AIG. [77] Prudential was to buy the pan-Asian life insurance company, American International Assurance (AIA), for approximately $35. 5  billion. 78] On June 1, 2010 the deal failed because AIG would not accept the $30. 5  billion after Prudential lowered the amount by $5  billion from the originally planned $35. 5  billion after Prudential shareholder discontent. [79] AIG agreed on March 8, 2010, to sell its American Life Insurance Co. unit (ALICO) to MetLife Inc. for $15. 5  billion in cash and stock by November 1, 2010. Alico has annuities, life and health insurance operations in Japan, Middle East (including Nepal, Bangladesh and Pakistan), Western and Eastern Europe, Latin America and the Caribbean. AIG said it will sell Alico for $6. 8  billion in cash and the remainder in MetLife equity.The deal leaves AIG as the second-largest shareholder of MetLife, with a stake of more than 20% in the company. On March 29, 2010, Bloomberg L. P. reported that after almost three months of delays, AIG had com pleted the $500  million sale of a portion of its asset management business, branded PineBridge Investments, to the Asia-based Pacific Century Group. [80] On September 30, 2010, AIG announced an agreement to sell two of its life insurance companies in Japan, AIG Star and AIG Edison, to Prudential Financial for $4. 2  billion in cash and $600  million in the assumption of third party debt to help repay some of the money owed to the U. S. government. 81] On November 1, 2010, AIG announced it had raised $36. 71  billion from the sale of ALICO and an initial public offering for AIA. The company will use the proceeds Federal Reserve Bank of New York credit facility and make payments on other interests owned by the government. [82] On September 2, 2011, AIG filed with the SEC to spin off their aircraft leasing firm, International Lease Finance Corporation (ILFC), in an initial public offering. [83] [edit] Record losses On March 2, 2009, AIG reported a fourth quarter loss of $61. 7 bn (? 43bn) and revenue of ? $23. 7bn ( 16. 2bn) for the final three months of 2008. This was the largest quarterly loss in corporate history at that time. 84] The announcement of the loss had an impact on morning trading in Europe and Asia, with the FTSE100, DAX and Nikkei all suffering sharp falls. In the US the Dow Jones Industrial Average fell to below 7000 points, a twelve-year low. [85][86] The news of the loss came the day after the U. S. Treasury Department had confirmed that AIG was to get an additional $30  billion in aid, on top of the $150  billion it has already received. [87] The Treasury Department suggested that the potential losses to the US and global economy would be ‘extremely high' if it were to collapse[88] and has suggested that if in future there is no improvement, it will invest more money into the company, as it is unwilling to allow it to fail. 89] The firm's position as not just a domestic insurer, but also one for small businesses and many list ed firms, has prompted US officials to suggest its demise could be ‘disastrous' and the Federal Reserve said that AIG posed a ‘systemic risk' to the global economy. [84] The fourth quarter result meant the company made a $99. 29  billion loss for the whole of 2008,[88] with five consecutive quarters of losses costing the company well over $100  billion. [89] In a testimony before the Senate Budget Committee on March 3, 2009, the Federal Reserve Chairman Ben Bernanke stated that â€Å"AIG exploited a huge gap in the regulatory system,† †¦ and â€Å"to nobody's surprise, made irresponsible bets and took huge losses†. [90] [edit] 2009 employee bonus paymentsMain article: AIG bonus payments controversy In March 2009, AIG announced that they were paying $165  million in executive bonuses. Total bonuses for the financial unit could reach $450  million and bonuses for the entire company could reach $1. 2  billion. [91] President Barack Obama, who vo ted for the AIG bailout as a Senator[92] responded to the planned payments by saying â€Å"[I]t's hard to understand how derivative traders at AIG warranted any bonuses, much less $165  million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat? † and â€Å"In the last six months, AIG has received substantial sums from the U. S. Treasury.I’ve asked Secretary Geithner to use that leverage and pursue every legal avenue to block these bonuses and make the American taxpayers whole. â€Å"[93] [pic] [pic] Protester outside 60 Wall Street Deutsche Bank's US main office in the wake of the bonus controversy is interviewed by news media. Politicians on both sides of the Congressional aisle reacted with outrage to the planned bonuses. Senator Chuck Grassley (R-Iowa) said â€Å"I would suggest the first thing that would make me feel a little bit better toward them if they'd follow the Japanese example and come before the Americ an people and take that deep bow and say, I'm sorry, and then either do one of two things: resign or go commit suicide. [94] Senator Chuck Schumer (D-New York) accused AIG of â€Å"Alice in Wonderland business practices† and said â€Å"It boggles the mind. † He has threatened to tax the bonuses at up to 100%. [95] Senator Richard Shelby (R-Alabama) said â€Å"These people brought this on themselves. Now you're rewarding failure. A lot of these people should be fired, not awarded bonuses. This is horrible. It's outrageous. â€Å"[96] Senator Mitch McConnell (R-Kentucky) echoed his comments, saying â€Å"This is an outrage. â€Å"[97] Senator Jon Tester (D-Montana) said â€Å"This is ridiculous. † and AIG executives â€Å"need to understand that the only reason they even have a job is because of the taxpayers. â€Å"[98] Senator Dick Durbin (D-Illinois) said â€Å"I've had it. and â€Å"The fact that they continue to do it while we pour in billions of doll ars is indefensible. â€Å"[99] Representative Barney Frank (D-Massachusetts), Chairman of the House Financial Services Committee, said paying these bonuses would be â€Å"rewarding incompetence†[98] and â€Å"These people may have a right to their bonuses. They don't have a right to their jobs forever. â€Å"[96] Representative Mark Kirk (R-Illinois) said â€Å"AIG should not be on welfare from Uncle Sam, and yet paying bonuses and transferring a considerable amount of taxpayer funds to entities overseas. â€Å"[99] Federal Reserve Chairman Ben Bernanke said â€Å"It makes me angry. I slammed the phone more than a few times on discussing AIG. [96] Lawrence Summers, Director of the National Economic Council, said â€Å"The easy thing would be to just say, you know, ‘Off with their heads,’ and violate the contracts, but you have to think about the consequences of breaking contracts for the overall system of law. †[100] Austan Goolsbee, of the Council of Economic Advisers said â€Å"I don't know why they would follow a policy that's really not sensible, is obviously going to ignite the ire of millions of people. † and â€Å"You worry about that backlash. â€Å"[101] Political commentators and journalists expressed an equally bipartisan outrage. [94][102][103][104][104][105][106][107][108][109][110] On March 24, 2009, The New York Times printed the resignation letter of Jake DeSantis, executive vice president of AIG's financial products unit, to Edward M. Liddy, the chief executive of AIG.DeSantis stated he had nothing to do with the credit default swaps, he lost much of his life savings in the form of deferred compensation invested in the capital of AIG Financial Products; he had agreed to work for an annual salary of $1 out of a sense of duty, that he was assured many times the bonuses would be paid in March 2009, and that he believed he and others were let down by Liddy's lack of support. He also stated he was going to donate his bonus to those suffering from the global economic downturn. [111] It was reported that Senator Christopher Dodd (D-Con) (who first denied, then admitted to amending the legislation to allow the AIG bonuses), received $160,000 from employees of AIG. [112][113][114][115] A memo issued in 2006 by Joseph Cassano, AIGFinancial Products chief executive, urged AIG employees to donate to Dodd, saying that as â€Å"next in line to become chairman of the Senate Banking, Housing, and Urban Affairs Committee†¦ Senator Dodd will now have the opportunity to set the committee's agenda on issues critical to the financial services industry. â€Å"[116] [edit] Manchester United Sponsorship AIG was the principal sponsor of English football club Manchester United from 2006–2010, and as part of the sponsorship deal, its logo was prominently displayed on the front of the club's jerseys and other merchandise. The AIG deal was announced by Manchester United chief executive David G ill on April 6, 2006, for a British shirt sponsorship record ? 56. 5  million, to be paid over four years (? 14. 1  million a year).The deal became the most valuable sponsorship deal in the world in September 2006, after the renegotiation and subsequent degrading of the ? 15  million-a-year deal Italian team Juventus had with oil firm Tamoil. During AIG's sponsorship, Manchester United enjoyed one of its most successful periods in history, winning the Premier League three consecutive years, two Football League Cups, and the UEFA Champions League. [citation needed] On January 21, 2009, it was announced that AIG would not be renewing its sponsorship of the club at the end of the deal in May 2010. It is not clear, however, whether or not AIG's agreement to run MU Finance will continue.American risk consulting firm Aon Corporation was named the club's new principal sponsor on June 3, 2009, with its sponsorship of the club taking effect from the beginning of the 2010–11 seas on. The terms of the deal were not revealed, but it has been reported to be worth approximately ? 80  million over four years. [citation needed] [edit] Share buyback Due to the Q3 2011 net loss widened, so on November 3, 2011 the AIG shares has plunged 49 percent year to date. The insurer's board has approved the share buyback of as much as $1 billion. [117] [edit] Litigation |[pic] |This section needs additional citations for verification. Please help improve this article by adding citations to reliable | | |sources.Unsourced material may be challenged and removed. (September 2008) | In November 2004, AIG reached a US$126  million settlement with the U. S. Securities and Exchange Commission and the Justice Department partly resolving a number of regulatory matters, but the company must still cooperate with investigators continuing to probe the sale of a non-traditional insurance product. [118] On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered a letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes.This letter was the latest volley in what the Wall Street Journal deemed a â€Å"public spat† between the Company's Board and management, on the one hand, and its key stockholders, and former CEO Maurice â€Å"Hank† Greenberg on the other hand. [119] Death Bet Circa 2010 the WSJ reported that a family sued AIG for alleged complicity in a ‘stranger-originated life insurance' scheme, whereby AIG managers allegedly welcomed people without an insurable interest to take out life insurance policies against others. The case involved JB Carlson and Germaine Tomlinson, and was one of many similar lawsuits in the US at the time. [120] [edit] Accounting fraud claimsOn October 14, 2004 the New York State Office of Attorney General Eliot Spitzer announced that it had commenced a civil action against Marsh & McLennan Companies for steering clients to preferred insurers with whom the company maintained lucrative payoff agreements, and for soliciting rigged bids for insurance contracts from the insurers. The Attorney General announced in a release that two AIG executives pleaded guilty to criminal charges in connection with this illegal course of conduct. In early May 2005, AIG restated its financial position and issued a reduction in book value of USD $2. 7  billion, a 3. 3 percent reduction in net worth. On February 9, 2006, AIG and the New York State Attorney General's office agreed to a settlement in which AIG would pay a fine of $1. 6  billion. [121] [edit] Corporate governance [edit] Board of directors