Ethics in Financial Management Essay Example | Topics and Well Written Essays - 500 words

Ethics in Financial Management - Essay Example In today's world, organisations and workplaces have become extremely diversified and have adopted varied stance s in terms of job processes and the general outlook. What is striking in such a scenario, is the prevalence of organizational or work ethics. Ethics has evolved to become an important aspect of organizational functioning, since it deals with the self-esteem and the very importance attached to employees in an organisation. Is it but well known, that an employee is the building block of an organisation and the importance attached to ethics in today's organisations are a reflection of the same. Financial Code of Ethics is important for the smooth functioning of any organisation. One of the important aspects of financial code of ethics, is to maintain integrity in the generation of accounts. One must ensure the hierarchal accountability and must also adhere to strict confidentiality and secrecy. It is also important to make use of the independence given and to maintain high levels of honesty and transparency. The Enron scandal was something that rocked the business world and also inspired books and movies based on it.

Are Small Cap Stocks Influenced Similarly and by the Same Economic Essay

Are Small Cap Stocks Influenced Similarly and by the Same Economic Indicators as Large Cap Stocks An Annotated Bibliography - Essay Example The study used monthly data from 1974 to 1989 for macroeconomic indicators and for the Fed monetary policy (as independent variables) and used 39 portfolios of 10 value weighted stocks from large cap and small cap categories (as dependent variables) to study the volatility in stock return. They found that 32% of the stock market return volatility could be explained by the monetary policy which is similar to the finding of Chang, Yeung, & Yip. (2000) below that macroeconomic indicators do not fully explain the stock market movements. It was also found that 96% of the cases showed that a tightening of the monetary policy (reduced money supply) reduced stock returns. Further, the study found that while both small and large firms were harmed by the disinflationary monetary policy, only large firms benefited from expansionary monetary policy. The study illuminates the bibliographic topic by making a distinction between small and large cap stocks and the difference in effect of macroeconom ic indicators on different stock categories. The authors at the time of the study were Doctoral Students at the University of Pennsylvania. They studied the impact of a set of 21 economic indicators and followed a regression analysis approach to identify whether economic indicators could explain the stock market movements from 1997 to 1999.... They first started with testing for correlation between the economic indicators and excluded some of them based on the statistical correlation. For the remaining indicators, they developed a multiple linear regression model to explain the stock price. They found that even after multiple regressions and excluding the insignificant variables, the resulting regression model could not fully explain the stock market movements. This finding is in line with that of Thorbecke and Coppock (1995) above. This study is of importance for the current research as I intend to use a similar methodology for multiple regression on 9 economic indicators in the US that this study found to be statistically significant in their regression model. Vygodina, A. V. (2006). Effects of size and international exposure of the US firms on the relationship between stock prices and exchange rates. Global Finance Journal 17 , 214-23. The author at the time of the study was a Professor at the Department of Finance, CBA , California State University at Sacramento. The research was aimed at studying whether the changes in exchange rates have a difference in impact on the stock prices based on the size of a firm. The methodology used was to conduct a Granger Causality test to verify the causality from large cap and small cap stocks to the exchange rate. The Granger Causality test was used in the study as it statistically tests whether one time series causes movements in another time series. It was found that while there did exist a statistically significant Granger Causality from large-caps to the exchange rate, there was no causality from small caps. The study also noted that the as both variables are significantly affected by the federal monetary policy and that the nature of relationship

Trends of the business development in contemporary economic environment

Trends of the business development in contemporary economic environment A major challenge facing global organisations is the need to align local business processes with global corporate strategies. Discuss ways in which management accounting and control practices  might facilitate this whilst highlighting the potential problems inherent in those practices. Introduction The global competition becomes fierce as firms in an industry treat the world as a single market. To set up multinational company or make firm internationalized, it could be considered as the main trend of the business development in contemporary economic environment and could help business expand to a new level in long term development. However, the major challenge facing global organisations is the need to align local business processes with global corporate strategies. In other words, how to make an appropriate localization strategy in accordance with companys global corporate strategy is the core in overseas development. Management accounting and control is a useful integrative technique that concerned with coordination, resource allocation, motivation, and performance measurement etc. The purpose of this essay is to explore how management accounting and control systems deal with the coordination of the global corporate strategy and the local business process as confronting the c hallenges and the potential problems. Firstly, this paper will illustrate the meaning and the main theories of management control to identify its endowed role in changing environment. Then through enumerating and analysing the challenges for the management accounting and control in the contemporary business environment, the objective and role of management control system will be identified, simultaneously examples will be incorporated with discussions. Finally, a concluding section will be presented. Theories -Definitions and main roles of MCS The definition of management control is adjusting as the rate of change increases. In 1965, Robert Anthony defined it, the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organisations objectives. But this approach was very specific in the basic discipline in behavioural control; its hardly to fulfil the wider range and variety of consideration of the interaction of the control mechanisms and tended to narrowly focus on the large, hierarchical organizations. As emphasizing the management strategys dominant position in organizations operations, the management control served like a tool to corporate the whole performances. It was then defined, enhance organisational performance by ensuring the implementation of the organisations stated strategy (Merchant and Van Stede, 2003). Due to the uncertain business environment, such as technological changes, social changes, political changes and the requirements of co mpany internationalized, management control are considered as the process of guiding organisations into viable patterns of activity in a changing environment (Berry, Broadbent and Otley, 2005). Chenhall (2003) also mentioned that the terms management accounting (MA), management accounting systems (MAS), management control systems (MCS), and organizational controls (OC) are sometimes used interchangeably. Management control systems contain many techniques such as Total Quality Management (TQM), Just In Time (JIT), Budgeting, Balanced scorecard etc. -MCS in global economy In global economy, different culture could have an impact on the effectiveness and efficiency of control system. Managers live and work across different cultures and in different countries should understand cultural differences and sensitivities. Multinational companies need to control activities of global subsidiaries. Transplanting domestic control may be efficient but ineffective if not accepted because of cultural context (lecture notes). Management control system plays a decisive role in control and planning process. Hofstede (1980) introduced the framework of culture dimension based on several studies on culture differences. He identified four primary dimensions the differentiate cultures: power distance, individualism collectivism, masculine feminine, and uncertainty avoidance. All the characteristics illustrated in this framework should be taken into account when conducting the management control system. This taxonomy is broadly used in many countries. Power distance is defined as the extent to which the less powerful members of institutions and organizations within a country expect and accept that power is distributed unequally. Employees in large power distance countries are expect to accept the order from the upper staff or managers, such as Asian countries. They tend to be associated with centralization and less participated in decision making. Individualism collectivism indicates whether group or individual should get the focus. In individualism society, management focuses on managing the individuals and conducting based on individuals interests. USA gets the highest score in individualism dimension. Hofstedes masculine feminine dimension emphasizes genders role more than gender. Women are supposed to be more modest, tender, and care about the quality of life whereas men are more determined, assertive and concerned with the success. This dimension implies on management control system how managers grasp their different interest s to reward appropriately that achieve the best effect. According to the further study of this dimension, J. C. Lere and Kris Portz (2005) found that Japan, Austria, Great Britain, and the United States are more masculine on the masculine/feminine dimension. Denmark, Sweden, and Norway are more feminine. Uncertainty avoidance deals with a societys tolerance for uncertainty and ambiguity. In terms of high uncertainty avoidance culture country, the laws, rules and regulations reduce the uncertainty and ambiguity. Nevertheless, Davidson (1980) stated that the learning or experience of firms international expansion can coderate the effects of cultural distance. Specially, firms in the initial stages of expansion might exhibit a clear preference for similar cultures, but firms in a more advantage of the expansion might not show this preference. Further as firms gain more experiences and adapt to the target markets environment, the influences of cultural distance can become less significant operating in foreign countries. McSweeny (2002) also heavily criticised that treats national culture as implicit; core; systematically causal; territorially unique; and shared. These alleged characteristics are first described, and later challenged. MCS respond to the challenges confronting multinational firms The market penetration strategies of global firms are varied, but they could be concluded to a word: localization. Localization strategy is the core competitive strategy for multinational corporations (cross-national companies) as entering the target market country which including relationship (especially with government), product and service, marketing strategy, human resource, business operation mode, development and research. However, localization in global economy is not completely implementing organization as exactly the same as the local organization or change entirely in order to fit the local market. It is just a sense of tending to be local, in terms of orchestrate responses to local condition and opportunities. A multinational company must have its unique outstanding corporate characteristics to rely on. From its initiative to mature process, every detail reflects the companys core competency. Thus all the subsidiaries should keep their core competency all along, according to the host countrys geographical, cultural condition aligning properly on management strategy and marketing strategy. Localization is an advisable marketing strategy. Contrarily, the subsidiaries centrifuge organizations core competency in order to implement truly localization, must lead to failure. For instance, McDonalds selling point is western fast food, if it sells Chinese dumpling, there wont be a miracle happened. There are four mainly challenges for implementing localization. Firstly, it is the local consumers demand pressures. Many industries reflect highly national and geographical characteristics; they should fulfil immense diversity requirements of customers. Such as Microsoft, it launched its software in different languages for customers in worldwide. Secondly, building up a good corporate image, multinational company could succeed in global development, to get the support from the local government, is generally depend on its cooperate image and visibility. Employ local people, implement material or resources locally supply, the companys culture and marketing strategy tend to fit local environment, all these mentioned above could contribute transnational in local development that consolidate corporate image. Management accounting plays a role in coordination the flows of materials (sourcing of raw materials, components, sub-assemblies and the distribution of finished goods), flows of recourses including capital, technology and flows of information contains raw data, analysed information and accumulated knowledge( J.F. Dent). In particular, Bartlett and Ghoshal (1989) suggest that the coordination of international flows of material may be best accomplished by formalised systems for logistics management. The geographical spread of the firms operations, the complexity implicit in flexible specialisation, and the ever changing nature of the firms operations may necessitate a huge initial investment in appropriate systems. But, once set up, they may render materials coordination routine. On the other hand, the coordination of resources should not be automated, they suggest. The allocation of capital, technology and people are key strategic decisions. They require sensitivity and judgement and a corporate overview. Thirdly, it is blending into local culture. Cultural differences can lead to the subordination of central concerns to local interests (J.F.Dent, 1996). This is considered as the centrifugal tendency. Hamel and Parahalad (1989) indicated that a clear strategic intent or a vision of the future is one of the most potent centripetal forces for any organisation. Thus it embodies an active management process, to identify strategic imperatives and immediate operational objectives, communicating the importance of the objectives, and providing new objectives. The planning process (MCS) offers great potential for managing consensus around the firms strategic intent. Planning meetings, conferences and periodic reviews can be used to focus attention on the overriding goal for the organization, and to secure commitment towards its accomplishment. This implies a great deal of dialogue across the organization , bringing managers from different parts of the world together to participate in strategy debates and translate these into specific operational targets and milestones (J.F.Dent, 1996). Finally, eliminating the integrative production cost. This requires multinational company take full advantages of low production cost, human resource cost and so on of local market to reduce the total cost, increase the total efficiency. J.F Dent (1996), indicated political pressures and the renewed assertion of national differences in customer tastes and preferences suggest that global firms may need to add a greater capability for national responsiveness to their cost efficiency. The cost pressures suggest that multinational firms may require a higher level of integration to access scale economies. At the sane time, firms may need to respond to increasing pressures for innovation, and to leverage these throughout the world. Budgeting is not only the system about numerical data. It is also concerned with monitoring and evaluating the per Examples China is witnessed the most rapidly developing country in the world in recent decades. Since 1992, Chinas economic reform movement, there have been more than 400 companies of Top 500 Global corporations invested in China. There is nearly 1/3 gross output constituted by foreign enterprises. So the investment behaviour and development of foreign enterprises are more typical and apparent in this resurgent market. There are two examples presented from positive and negative aspects. Toyota China Toyota is one of the top three car manufacturers in the world. In China automobile market, Toyota once caught up with GMs sales to be No.1. Under Toyota production system, Toyota centralized sixteen spare parts factories in Tian Jin, China, which is quit similar as the layout in head factory in Japan headquarter. In Japan, the main part of Toyota is in the middle, other spare part factories are located surround the main part. And it only takes 20 minutes between the centre and the part factory. Based on this organisation structure, Toyota creates Toyota model-Just in time. According to the requirement for the spare part, Just in time makes the inventory to nearly zero. Its outstanding production system and control system not only maximize the effectiveness and efficiency, but also benefit its Chinese partners that promote the local automobile technology development. Moreover, Toyota set up its production factories on its target markets helps understand the current situation and deman d of customers in maximum extend that could adjust or coordinate products or services flexibly to fulfil customers needs. This Toyota model changed the structure of the global automobile manufacturing. There is another example about failure on budgeting control. KFC KFC has led Chinas fast food business for a very long time. KFC is dominating even rival McDonalds in China. In recent years, KFC has tailored some dishes specifically to Chinese tastes, customers can order seasonal vegetables or fruit. In spring, it is bamboo shoots; in summer, aloe vera sunday is on the menu. And in colder months, theres rice porridge and winter soup. In order to accelerate expanding the market, KFC plans to challenge Chinese traditional breakfast market in 2009. It will launch Chinese fried twisted cruller which is most common food in Chinese breakfast (like burger or sandwich can be found everywhere on the street shop) and plans to introduce more Chinese traditional breakfast food. Its selling point is nutrition and health. KFCs fried twist cruller is without potassium alum. Alum is a part of ingredient of the traditional one, but it is just tiny little. But it is the inorganic substance, may not be frequently edible. This new product promotes nutritional and health breakfast idea. However, compared with the traditional fried twisted crullers price in Chinese breakfast restaurant, it is 6 six times than the market price. The colour, the flavour and the fluffy texture will keep original. As this news out, more than 50% net citizens are not interested this new KFC fried twist cruller. KFC is a representative American fast food brand, burger or fried chicken are its star product, they are the core product KFC should put focus on. As considered as its competitor, more than millions breakfast restaurants are found all over the country. Challenge to expand its market to Chinese traditional breakfast market is not an advisable marketing strategy. Conclusion Global competition is getting extremely fierce and the uncertain environment is still changing. Management accounting and control system is the key system for every business organization as it provides clarity framework to ensure the overall operations of the organization keep a capability to survive in its uncertain environment. in overseas operations, the parent company centralizes the whole operation and need to make sure the local subsidiaries business process is in accordance with companys core strategy or keep companys core competency. There are four main challenges confront cross-national company: local customers demand pressures, setting up good corporate image, culture, eliminating the integrative production cost. In initial phase, based on Hofstedes dimension of culture, the main strategy could focus on how to overcome the culture distance. But as all the operations on the track, planning and control processes (MCS) are very important in organizations performance. They are essential for the efficient performance of functional management responsibility (Otley, 1987). The management accounting function can contribute by creating focusing on competitive threats. Further, the transnational also calls for new performance measures and reward structures. National subsidiaries no longer have a purely local role, rather they are part of a broader global effort. This implies a move from simply measuring their performance in local markets to evaluating their contributions to the firms strategic intent. Richer, broader measures of performance are needed to reward behaviour in the corporate, as opposed to local (J.F.Dent, 1996).

Cinematic Techniques Essay -- essays papers

Cinematic Techniques The extraordinary film The 400 Blows (Francois Truffaut, 1959) skillfully uses cinematic devices appropriately within the context of the theme. Part of the underlying theme of this movie as explained by Truffaut himself is, â€Å"... to portray a child as honestly as possible...†(Writing About Film, 1982). It is the scenes in this movie that are most helpful in disclosing the overall theme of the film. Within the scenes, the camera angles in this film play an important role in accentuating the emotions behind the scene. The camera angles used in this film will be the primary focus of this paper. The high angle shots utilized in The 400 Blows are effective in helping to develop the overall feel of a scene. This movie uses the high angle shot in three different scenes to evoke three different emotions and it still works extremely well. The opening sequence uses a series of high angle shots to assist in establishing a feeling of childhood innocence and indeed, the child in this film, Antoine Dionel (Jeanne-Pierre Leaud), starts out innocent. The camera focuses of the city buildings and the sky above. As shown from a ground point of view, the buildings are larger than life and intimidating. This is how most children view the world, as being large and intimidating. Take, for example, the scenario of dropping a child off for his/her first day of school. Most of them are devastated because they have to deal with a world that is larger than the one they know, an...

First African-American in Baseball – “Jackie Robinson”

Jackie Robinson, the first African-American in Baseball, changed the face of sports for ever. Not only was he an outstanding athlete, but with the help of Branch Ricky, they worked for reforms in the sports community. There was work required, though, since many sacrifices were made. The face of not only segregation, but the face of sports was on his shoulders. Through his unique form of, Jackie Robinson was one of the greatest driving forces behind equality and helps to equalize many things most people Jack Roosevelt Robinson was born in January 31, 1919 in the town of Cairo, Georgia. Jackie, as most people called him, was stared in many sports through both High School and College. He stared in Baseball, Football, Track, and Basketball. He had many accomplishments, but one that stands out in his college years was when alongside Kenny Washington almost took UCLA to the Rose Bowl (â€Å"Jackie Robinson† 1). When Jackie's athletic eligibility ended he left UCLA and got a job with the National Youth Administration. While there he played football with the Honolulu Bears. When World War 2 broke out, the Army's Officers Candidate School accepted Jackie and ecame a second lieutenant. While stationed at Fort Riley in Kansas, Jackie was not allowed to play Baseball or Football (â€Å"Jackie Robinson† 1). Jackie, however, tried to play both Baseball and Football while stationed. When the Football team formed he was ordered to go home on leave. Then he was told to try out for the nonwhite baseball team, which he later discovered didn't exist. He was then sent Fort Hood. After a good deal of time, Jackie was court-martialed for breaking Jim Crow status. Although it he was found innocent, he was discharged on medical grounds, nd was given an honorable discharge (â€Å"Robinson, Jackie† 1). In 1945 Robinson signed a contract with the Kanas City Monarchs of the NAL (Negro American League) for four-hundred and fifty dollars a month (â€Å"Jackie Robinson† 1). Attention was brought to Jackie because of his great play. Branch Ricky, Brooklyn's General Manager, picked him as the most likely to overcome racism in sports In April 1945, ironically Jackie heard from the Boston Red Sox, who were the last to integrate the two leagues. On August 27, 1945 Robinson was brought to the Dodgers Office at 215 Montague Street. Jackie thought he was there for the Brown Dodgers, but on the contrary he was there to sign with the Montreal Royals. Ricky was really sure of Jackie but he wanted to see how he would put up with the pressure and abuse (â€Å"Jackie Robinson† 1). To test him, Ricky put him through several situations. One involved a white player hurling offensive racial slurs at Jackie and then punched him in the face. â€Å"Rickey took a mock swing at Robinson, and hollered, ‘What do you do know, Jackie? What do you do now? ‘ Robinson replied, ‘I get it, Mr. Rickey. I've got another cheek. I turn the other cheek'† (â€Å"Jackie Robinson† 1). That was all Rickey needed to hear and on October 23 he announced that Robinson had a contract with the Montreal Royals Jackie first appeared on April 18, 1946, for the first time in organized baseball. The house was packed and Jackie went four-for-five with one homer, four RBIs, four runs, and two stolen bases. As something of a trademark, Jackie danced away from the plate allowing Jersey City to commit two balks (â€Å"Jackie Robinson† 2). Rickey feared that resistance was soon to follow and it did. At Syracuse he was aunted, two Baltimore players protested, and Robinson's two black teammates that year washed out. He was a nervous wreak by the end of the season, but still he came out to be the International League's batting champion at . 349 (â€Å"Jackie Robinson† 2) Rickey decided that it was now time for Jackie to hit the major leagues, but he being very cautious. For Dodgers spring training in 1947, Rickey sent Jackie to Havana, but still keeping him on the Montreal roster. Rickey was being a cautious as he Could, trying to anticipate any countermove made against him. One move he may of issed was a number of players, including Dixie Walker, signed a petition against playing with ‘a black man'. One night Leo Durocher told them to take the petition and stuff it, after waking them up from sleeping. Rickey told them the same the next day Rickey had already thought this out, and he wanted Jackie's teammates not only to accept him but to want him. he scheduled seven exhibition games in order to show of what Jackie could do. He received an . 625 batting average, and that seem to turn some eyes in his direction. Rickey, although, didn't announce Jackie was on that seasons line p until three days before the first game. The news of this you would think would be headline, but it was overshadowed by the suspension of Durocher (â€Å"Jackie Robinson† 2). He played his first game at the age of 28. For several games he went hitless and he continued to struggle for most of the season. The behavior of other teams did not help though. Death threats were given in Cincinnati against both him and Reese, a long time friend and supporter. Problems continued and even the Cardinals almost went on strike until St. Louis management and National League President Ford Frick stopped it. â€Å"‘I do ot care if the league strikes,' Frick said, ‘those who do will encounter quick retribution. All will be suspended, and I don't care if it wreaks the National League for five years. This is the United States of America and one citizen has as much right to play as another. The National League will go down the line with Robinson, whatever the consequences'† Jackie had to stifle a lot because the verbal abuse, and the immense pressure continued, but through it all Rickey's experiment had worked. â€Å".. itcher Don Newcombe, ‘That's the one thing I didn't like about Jackie he always wanted to be right, and you an't be right all the time. You have to be wrong sometimes'† (â€Å"Jackie Robinson† 2). After a year or two of confusion Jackie was traded to the Giant for Dick Littlefield and thirty-thousand dollars. The Giants offered him sixty thousand to stay on, but the Dodgers accused him of saying something about retiring just to get a better and bigger contract. To prove him wrong Jackie retired and started busying himself with Financial games and such (â€Å"Jackie Robinson† 3). Once out of Baseball he got a position with a coffee company and then as board hairman of Freedom national Bank. Robinson grew ill with diabetes and died from a heart attack in his home in Stanford, Connecticut on October 24, 1972. The Dodgers retired his number 42, and he was elected into the hall of fame in 1962, the first year he was eligible. The National League Rookie of the year was renamed in his honor in 1986 Though most people now take segregation for granted, there where many people who helped change it. Jackie Robinson with the help of Branch Rickey worked to reform the major leagues of not only one sport but all of them.

Boeing’s E-Enabled Advantage

Case Study _Boeing’s e-Enabled Advantage_ The Boeing Company is a major aerospace and defense corporation, founded by William E. Boeing in Seattle, Washington. Its international headquarters has been in Chicago, Illinois since 2001. Boeing is the largest global aircraft manufacturer by revenue, orders and deliveries and the second largest aerospace and defense contractor in the world. Boeing is the largest exporter by value in the United States. Boeing acquired this efficient aerospace technology through companies like Rockwell and McDonnell Douglas. They thus increased the number of contracts in the defense aircraft industry and now stood a better chance in the market. Boeing had to eliminate wastage and step up efficiency to cut unnecessary costs. So the procedures of parts ordering and scheduling were reshuffled. Additional proficient inventory management was necessary. The manufacturing process experienced a major change and there was less production delays than before which not only helped in keeping an efficient flow when it came to their supply chain but also helped in better customer service which of course helped them hold on to crucial market share. Gaining market share of course hugely elevated their problems of losing customers or market share to Airbus (who in order to turn away customers from Boeing had initially adopted the strategy to lower prices of their products). Of course the customers were airline companies. Boeing’s success depended directly on the success of those airline companies. The e-enabling architecture of the system has four underlying components: The Connexion by Boeing broadband data and Internet services system. Bibliography