Branding Strategy Essay

Many companies opt for Multi Brand Strategy in order to generate economies of scale by using the basic advantages of the strategy. But it cannot be denied that Multi Brand Strategy can fail due to poor management and due to adoption of unprofitable business models. Multi Brand Strategy refers to a marketing strategy under which two or more than two similar products of a firm are marketed under Different Brand names. In most of the cases, these products are competing ones and are marketed under the Brand Names which are completely unrelated. Several companies take up this Multi Brand Strategy, as the strategy offers some advantages. First of all, by adopting Multi Brand Strategy,a company can obtain greater space in the market, where little space is left for the competitor business houses. Secondly, by promoting similar products under different Brand Names, a company can fill up the Price Gaps and Quality Gaps of the target market. In this way, the market can become saturated with the similar products of the same company. In every market, there are some customers who frequently change brands in order to experiment with products of different brands. By adopting the trick of Multi Brand Strategy, a company can serve effectively to these Brand Switchers. When a company undertakes Multi Brand Strategy, the managers of the company are bound to operate efficiently as internal competition is generated at a high degree. The decision of a company in adopting Multi Brand Strategy, depends on the success of the initial brand. If the initial brand becomes successful, then through franchising and retailing, a company can develop a second brand without generating much expense. The Franchises can promote both the primary and secondary brand through same advertisement. The marketing department of the company, can market the different multi brand products just in the way an agency works for multiple clients. All these advantages of Multi Brand Strategy can generate economies of scale. But, it should be mentioned here that, in spite of all the advantages of Multi Brand Strategy, there are risks too which can challenge the success of this kind of strategy. It has been observed that, in most of the cases, Multi Brand Strategy fail because of poor management and wrong choice of business model The disadvantages of brand extension strategies (1). Damage to the original brand image. When a certain type of product on the market ahead of the status, the brand has become a strong brand, in the minds of consumers will have a special image orientation, or even become a synonym for such products. This will be a strong brand extension, as proximate cause of (that is the last impression on people’s awareness of a more profound impact on the role of) the existence, it is possible to play a strong brand image consolidate or weaken the role. If the improper use of the brand extension, the original strong brand image represented by the information was weakening. 2).  Runs counter to consumer sentiment. A brand for the success of the process, the consumer is shaped by the corporate brand-specific functions, such as the quality of the psychological characteristics of specific targeting process. The strength of enterprises and brand extension to or incompatible with the original market has nothing to do with the products, on the contrary the psychological orientation of consumers. Such as â€Å"999† was originally Wei Yao in the well-known brands, â€Å"999† extend to beer, consumers will be difficult to accept. The brand extension of such misconduct, not only the effectiveness, but it will also affect the original strong consumer brands in the eyes of the specific psychological orientation. (3). Cixiaobichang easily form the â€Å"seesaw† phenomenon. When a name on behalf of two or more of a difference in the product, consumers will inevitably lead to fuzzy understanding of the products. When the extension of branded products in market competition at the absolute superiority, consumers will be the strength of the original brand positioning transferred to the psychological extension of the brand. Thus, in effect weakened the strength of the brand advantage. This extension of the strong brands and brand competition Cixiaobichang situation changes, that is, â€Å"seesaw† phenomenon. (4). Implicate effect. Will crown a strong brand name in other products, if different products in quality, level on the difference between the poor, which makes the strong brand name products and brand extensions have an impact, not only damaged the extension of brand name products, but also implicate the strong brand. 5). Dilute brand identity. When a brand on the market after the success in the eyes of consumers will have a special image orientation, attention also focused on the consumer to the product’s function, quality and other characteristics on. If enterprises use the same brand launch function, is almost the same quality of similar products so that consumers fainted the first shift, the brand identity will be diluted.

Gender and Power in the Media Essay

Media is the best avenue for companies to advertise their products, especially if they want to reach a greater scopre of target consumers. Every day, persuasion through the television, internet, and radio commercials, as well as in printed ads and billboards will make them sell more of their products in an effectual manner (Allen). Radio and television are the two channels where most Americans get information, especially news, aside from the Internet, magazines, and many others. And because of these two media, they can definitely change the way audiences perceive things in society, especially the youth, who may be more vulnerable to media influence compared to adults. This may partly be attributed to their inexperience. It affects how they decide on things that matter greatly to them and to others (Reed). The core and obvious difference is that the radio only produces sound, while the television produces both sound and images. The radio was formed from different ideas coming from Michael Faraday’s electromagnetism, to James Clark Maxwell’s treatise on electricity and magnetism, to Heinrich Hertz’ Hertzian waves, down to Gugliemo Marconi’s wireless telegraph and signal company (the world’s first radio factory) and tuned syntonic telegraphy (Parker). The radio was first used as a transmitter of information, especially for the ships who sails long distances (Parker). This later on became a major requirement for ships, especially to have radio auxiliary power and two operators with a licensed driver after the Titanic sank in early 1900’s (Schoenherr). Previously, the programs in radio were only for musical and talk show purposes. However, starting 1940, the programs in radio also offered drama and news (Schoenher). In California, KALW San Francisco is one of the stations that operated in FM as it was aired on September 1. 1941. It was licensed by the Federal Communications Commission on March 10, 1941, to broadcast educational programs. Its first program was Schoolcast. The listeners of this program were mostly soldiers training in tanks as their radio is reached by the signal of the station (Tripod. com). Radio was even once classified as monopolistic competition, as only few individuals or group of people operate the radio industry in some states. But with the Telecommunications act of 1996, ownership was also granted to some groups (Drushel). Nowadays, there are registered and licensed 643 public and private FM and AM radio stations available for the listeners in California. One of these is 102. 7 KIIS FM or KISS FM in Spanish located in Los Angeles (SHG Resources State Handbook and Guide). The station was first heard in 1948. Presently, it was owned and managed by Clear Channel Communications. The station is actually a result of change formats, purchasing, and trade frequencies among defunct radio stations, individuals, and companies. Today it the stations is also known as LA’s #1 Hit Music Radio Station as it is one of the highest rated Radio station in the United States, and is recognized as 2007’s station of the year. The station plays R&B, pop, and rock music. They said that their play list is based on the likes of their listeners. Unlike any other station, they censor the songs before they play it on air. One of the popular personalities in the station is Ryan Seacrest. In society, some topics are beyond common knowledge, for example technical terms that are medical in nature and only medical experts can further explain. By having discussions on the radio or in television or having these placed in an article will allow information for more people, especially if these concern health and safety of the majority. Critical issues need to be exposed, analyzed, evaluated, and properly addressed, thus the role of media is vital in this stage (RadioIslam. org). Popular media, like FM Radio programs, particularly KIIS FM, in the late capitalist societies became the primary source of knowledge and experience virtually about anything, including gender. It is said that they are important in the creation of power relations in society (Hains). Take for example the social status of women and men. In the construction of gender and sexuality, it is said that the school, particularly the teacher, plays a very important role in this crucial stage. As expected, one can only be masculine and feminine. In some cases, some of the abuses of these children are coming from male teachers, whether this be physical or verbal. Some experts opine that femininity is always shown as sexual appeal, while men are sex seekers. Students would favor a woman teacher rather than a male teacher because they act as mothers and more overtly show concern for their students. To some students, male teachers are impatient. Male students are punished heavily by male teachers as compared to female students. Having said all of these, we can say that both sexes experience harassment and abuse from both sexes, and not just the females (Chege). The media can use their influence to expose these problems and seek help and justice for this people, who at an early age have been subjected to such trauma. Moreover, it may be worth noting that media may also be partly blamed for reinforcing both the abusive behavior of the teacher and the shame felt by student over her stigma (Chege). Previously, females were viewed as passive. They are not allowed to work and usually stay at home, doing the chores of a wife, and only serve as trophies of their husbands. Worse, they are not allowed to go to school as it was believed that only men can seek education since they are the heads of their families. They are always expected to watch themselves and to act according to the norms of society, especially in the eyes of men as she is the object of men’s sight. Her skin must be supple, hairless, and smooth. Her face must be free of wrinkles, with no signs of stress or whatsoever. Her lips must be kissable, and her eyes mysterious. Women are said to be more restricted with their movements. They must be cross legged when sitting, and toes pointing only in straight or inward directions. Aside from these, they are also trained to show their smiles more than men do. They must stand with stomach in and chest out. If any of these are violated, it means that they violated norms of morals, speech, and movements. Moreover, women tend to occupy the lower and marginalized positions in a company, or even in society. Most women are given reproductive, productive, and community work. Reproductive tasks would include giving birth, feeding and educating her kids, taking care of her husband and children, and other domestic tasks. Her productive work would mean to produce products and services for others’ consumption. Community work would entail her to support different activities that will directly benefit society through volunteerism. However, not all women are given the chance to enjoy community work, since they are burdened by her reproductive and productive functions. Men tend to be more powerful in most realms. Needless to say, they occupy most of the highest positions in industrial organizations and society; thus the glass ceiling phenomenon (Chege). On the other hand, men are expected to be active, and to make things happen. They go out of their houses to work, and were sent to school whether they like it or not. Men are allowed to sit with legs apart so they can move loosely from one place to another (Employees. oneonta. edu). Nowadays, as media plays a greater role in building society, things have changed. There is equality among men and women. Women are more empowered to do things that men usually do. Media brought the new concept of a woman, someone who is ideal. For most, what is beautiful is a woman who is firm, with a narrow hip, with a small breast, and slim, as evidenced by the models in the cover of a magazine. For those who do not posses this kind of body, dieting is an alternative. Another way is to have surgery in order to enhance one’s physical attributes. Diet and surgery are some of the popular topics both in print and non-print media (Employees. oneonta. edu). Women are becoming more liberal as evidenced in the paper of Izabel Magalhaes. She said that it the responsibility of media especially radio in introducing the said concept to these women. Media is more open about talking about women’s stories that discuss their sex experiences at the expense of entertainment of others (Magalhaes). They say what they feel; they enact what they think (Employees. oneonta. edu). Women would go to school and get the job opportunities opened for men, and nowadays, women excel in different fields, almost overtaking men in different positions and levels. Some male workers would even be surprised that their boss is a woman In KIIS FM; men are not the only DJ’s in the station. There are also women who work everyday for the station. Even in describing the achievements of a woman, some adjectives that are associated with men are actually used. Those words are not anymore exclusive to men. The main reason is that men are usually viewed as individuals with physical strength. Nowadays, physical strength is not the only issue, topics about men’s health, fashion, and trips are now being featured by the media. This time, the notion that men only desires for women is not anymore true, since nowadays they are also interested in fashion, health, and many other things like women do (Magalhaes). As what have mentioned a while ago, media, particularly radio is also used to attract possible buyers by different companies. It is said that advertising, such as those in radios, contributes in representing and constructing gender identities in urban region which also exists in the past. The interests of large corporations are presented to the people, and whoever has the most interesting advertising skills and features will be favored by the consumers (Magalhaes). Alternatives were provided in front of us everyday, both are competitively packaged. Women are now represented by these advertisements as liberal, yet viewed as a commodity to be used by the society. Men on the other hand, are presented to be not only dominant over women, but with other types of men as well: disabled, heterosexual, homosexuals, and many others. At some point, women remains presented as incapable and dependent on men, and that it is assumed by the society that their existence is for the purpose of men’s pleasure. Some advertisements would use adjectives for a product that is a characteristic of a woman (Magalhaes). The choice of words will trigger our minds to think of different things. But because of these, more women are verbally harassed by men, whether in public or in private places. This injury is transformed into grievance, and lastly to a dispute. These situations encouraged more women to aspire greater positions in the society like in Congress, in the courtroom, or in media, and to acquire greater power. It is assumed that the media can change an individual’s outlook in life, behavior, ethics, and values. The combination of media with law, for example, has goals of transforming the society, using naming, blaming, and claiming. Naming would imply discussing harassment and defining it; blaming would mean identifying the suspect for harassment; and claiming would demand for the transformation of grievance into a remedy. In this situation, media can be used to educate the people in the different harassments that women acquire. But despite this fact, until now, there are still women who remains marginalized in the society. They still remain powerless and voiceless against the criminals (Laniya). Aside from advertising, media is also influential in the political realm. In every Presidential election, candidates would use the media to reach more people, and to persuade them to vote for him or her, such as in the case of the United States. This scheme started in 1930’s and 40’s when President Roosevelt used the radio to campaign in such a conversational manner with the people. Its success triggered other U. S Presidents to follow him, such as Franklin D. Roosevelt, Harry S. Truman, Dwight D. Eisenhower and John F. Kennedy. Aside from media exposure for these candidates, media can also be a source of funds for the candidates (The University of Texas at Austin). The voter’s idea of the personality of the speaker either make or break them. However, we should remember that personality and leadership is not really together. There were presidents who are idolized for their great leadership, but not for their personality. There were inefficient leaders who are revered for their personality (The University of Texas at Austin). Television and radio debates are important especially in educating the voters about who the deserving candidate They scrutinize the past and present of this candidates. But although media affects our decision regarding this matter, studies would show that face to face contact is still the most effective medium to get votes from the people. In election histories, it is said that a well oiled political machine, particularly with good relationship with the media, is more likely to win the elections (The University of Texas at Austin). In this juncture, we can say that indeed, media has the power to make a change, but not as much powerful as we do (The University of Texas at Austin). The real problem is that people does not have the power to control the media. It is said that in this setting it is the minority that dictates the people the things that they want others to know, the events that will only be consider for reporting, the facts that will be examined and evaluated, and many other instances. This minority controls the media, which affects the politics of the country, then way wee live, the way we talk, the way we think, and many others. The discussion on radio and televisions regarding any political issue that directly affects the interest of the people is only limited, as it is restricted to discuss some sensitive issues. Take for example if the discussion on the radio program is anti-Semitism, the station would not actually invite true anti-Semitist. In this case, the discussion is not really a discussion of the topic at all. Investigative journalism on the other hand, plays as a hero in revealing to us the hidden truth, up to some point that they already invade public lives (RadioIslam. org). The music played on the radio affects our moods and our emotions. Music can trigger sad and happy memories, depending on the song played at the program. Radio stations can dictate what kind of music and genres society ought to appreciate, and which singers ought to be popular. It modifies choice of music into something that favors the capitalist. Other artists may not be given the chance to be heard and present their talent (RadioIslam. org).

Disaster management 2 Essay Example | Topics and Well Written Essays - 2000 words

Disaster management 2 - Essay Example To facilitate increased safety must be the aim of any disaster management. As per (WCPT,2014 ) â€Å"Not all disasters, particularly natural disasters, can be prevented, but the risk of loss of life and injury can be mitigated with good evacuation plans, environmental planning and design standards†. The article suggests that the technology and strategies available today should allow the disaster manager to mitigate hazards. The article suggests that the public need to be educated well in advance to contain natural hazards more effectively. As per (Nielsen & Lidstone,1998,pg.1-6 ) â€Å"It seems the majority of opinion amongst disaster researchers and practitioners is towards the value of education as an effective and practical tool for hazard management†. The education must prepare the people for life, work security, rapid societal and technological changes and happiness. This would enable them to prepare themselves toward uncertainties and changes in the world. The author suggests that this public education should be theory integrated which has practical value in disaster management context. Public Safety – The main concern of the disaster management in relation to this article is the public safety issue. It is explained that despite all the technology and knowledge the disaster management experts have not come up with a measures to give proper safety to public in regard to natural disasters. As per (Kuehn,2011,pg.43-60)â€Å"Public safety information systems are part of the overall government infrastructure that must withstand natural and man-made disasters†. Public education and awareness – The authors raise concern over the inadequate public education regarding disaster management. The authors suggest that government should prepare the pubic towards the disasters which can be natural or general. There should be individual and lifelong learning practice to contain natural disasters. Proper understanding of public education- The

Shintoism in Japan Essay Example | Topics and Well Written Essays - 1750 words

Shintoism in Japan - Essay Example This indigenous religion of Japan is an unstructured mixture of a several beliefs and practices such as the worship of nature, future foretelling, fertility sects and shamanism. In its most fundamental form, Shinto is the religious structure of Japanese nationalism. According to Shinto tradition, the Japanese people and their country were divinely created, their emperors descendants of the Sun Goddess. Commonly, Japanese who are affiliated with Confucianism or the Buddhist religion are simultaneously affiliated with the Shinto sect. The two revered books of Shintoism are the Nihongi (Chronicles of Japan) and the Kojiki (Chronicles of Ancient Events). The Kojiki teaches that in the beginning were the two kami (deities), Izanagi (male-who-invites) and Izanami (female who-invites). Following the creation of Japan they produced many other kami. According to this mythological legend, Izanami passed away after giving birth to the kami of fire. Izanagi, in an attempt to find her, voyaged to Hell where he found her decomposed body infested by maggots. Horrified, he then went back to Japan in revulsion and purified himself by entering a body of water. The Sun Goddess, the Great Kami Amaterasu emerged when he washed out his left eye and Tsukiyom the Moon Kami materialized when he washed out his right eye. Following many years of war between the people of Japan, the Sun Goddess made her grandson, Ninigi, the first emperor of Japan. The Shinto religion is the only religion of the world that is represented by a female Deity. Japanese legend contends that the first emperor appeared during the seventh century B.C. but modern researchers put the actual beginnings of Japanese emperorship at about 200 A. D.

Capital Asset Pricing Model Essay Example | Topics and Well Written Essays - 2500 words

Capital Asset Pricing Model - Essay Example In most business, risks are often associated with each venture that entities partake. Logically, every endeavour can be affected by several stressors and will result to unsure forecasts. Indeed, firms are unaware of the exact benefits that an investment despite the forecasts provided by financial analysts. In determining the return that investments will likely provide, organisations make use of cash flows. Comparing the cash the flowed out from the investment to the cash that flowed in because of the investment appears to be a near accurate approach that results to better understanding of investment returns. Basically, there are certain tools and mechanisms used by firms to justify the use of cash flows. In particular, discounted multi-period risky cash flows are used to determine benefits coming from investments. Accordingly, the capital asset pricing model is one option that most financial analysts prefer. The succeeding discussions will tackle on the use of capital asset pricing model as basis for discounted multi-period risky cash flows. The prevalence of investments has led to several ideas particularly on the side showing benefits attributed to such activities. For investors, it is important to determine the exact amount that will be gained from the investment. Essentially, there were several methods developed to address this need. Taggart (1999) created capital budgeting analysis model that makes use of the discounted cash flow. Accordingly, this model enables investors to forecast the values of cash flow components. Among the models, this is considered as widely used because of the perceived precision. Another useful model was developed by Mahoney and Kelliher (1999), which focuses on the capital budgeting model that integrates uncertainty in the cash flow estimates. Using the Monte Carlo simulation, the model can serve as a practical and useful tool. The model, however, is embedded with higher level of complexity that can affect capital budgeting decisions. Moreover, Winston (1998) devised a model for multi-period capital budgeting using Silver Tool, which is an application in Excel. The model provides several advantages including selection of the best project considering all constraints and circumstances. Aside from the mentioned models, Ragsdale (2001) illustrated a model that uses Solver to determine optimal combination of capital budgeting investments as affected by capital constraints and maximising the Net Present Value. In this process, optimal selection of investment is ascertained considering vital risks that include the probability of success of minimum and maximum revenues with the other aspects previously mentioned. Data tables, as showed by Benninga (2000) can be used in capital budgeting analysis. The process involves computing for the point estimate of NPV, and the NPV is calculated using predetermined growth rates. The results are useful in evaluating the risk of the project with the given NPV ranges. Interestingly, Mayes and Shank (2001) focused on the use of different applications for capital budgeting analysis. This involves the collaboration of the models presented earlier in this discussion. Part of their model was to incorporate risk-adjusted discount rates and Monte Carlo simulation to evaluate project risks. According to Fama (1970), multi-period investment consumption can be associated with an individual's

Forced Migration Essay Example | Topics and Well Written Essays - 1500 words

Forced Migration - Essay Example A major reason that has intensified forced migration is the international terrorism which is being driven by certain religious ideologies.   For instance, the notorious organizations like the Al- Qaeda and Taliban which have targeted the conversion of entire world in to Islam, consider all other religious groups as their foes.   This Spiritual Terrorism addresses itself as Jihad.   Although they are against all governments, their major concern seems to be the United States of America and some other European nations that have a colonial or imperial history. The global terrorism has left far reaching consequences on the social, moral and economic areas of the present world. People suspect the members of other ethnic groups and that leads to communal riots and violence in many parts of the world. The recent terror attacks and current warfare in the countries like Afghanistan, Pakistan, Iraq, and Palestine etc. have produced thousands of refugees. The moral concept of the world is highly affected by terrorist distractions. Children and women are being exploited and victimized more than ever before. Crimes such as smuggling, looting and sex racketing flourish along with every terror attempt. Terrorists invest huge amounts in their operations to attract youngsters of poor financial and educational backgrounds.   The number of death and migration occurred during the terror attacks, and further due to the war against terror are beyond any statistics. Thousands of children every year become homeless and women miss their husbands and fathers for the sake of terrorism. Horrible uncertainty is prevailing in many of the countries which are having terrorist influence.  Unexpected climate changes and natural calamities also often compel people to move from one place to another. Irrespective of geographical differences every population is under the threat of forced migration which can be caused by climate change or other ecological catastrophe. Natural phenomena such as sea level rise, hurricanes and typhoons, drought, wildfire, heat waves, volcanoes, and earthquakes result in massive migration every year in many parts of the world. Millions of people become homeless who are often called ecological refugees. These causes are absolutely natural and there is no significant connection with any sort of global change. In addition to these environmental reasons, sometimes governments’ infrastructure projects also cause forced migration which can be attributed to global change. For instance, building of dams, roads or tourist resorts often demand people to leave their place. World Bank estimates that 90 million people were displaced in the 1990s as a result of infrastructure projects (Digby B, 2001). In fact there are only a few causes like globalization, financial policies, and infrastructure modification that are closely associated with global change.

Why did the suffragette movement in London turn violent in 1908 Essay

Why did the suffragette movement in London turn violent in 1908 - Essay Example The Daily Mail in London, on 10th January 1906, used the word â€Å"suffragette† to identify those women who adopted the method of action and violence in their campaign for their right to vote. â€Å"Suffragists† was used for those women who adopted peaceful and conventional methods in their campaign. Although the women had been fighting for their right to vote ever since the 1860s, the movement gained its momentum under the leadership of Emmeline Pankhurst and her two daughters Christabel and Sylvia. The Pankhursts’ established the Women’s Social and Political Union (WSPU) in 1903. According to June Purvis (2003), Emmeline was moved by the plight of women in poverty. She believed that the only way the women could gain their rights in the society was through the right to vote. As June Purvis (2003) writes, Emmeline believed that â€Å"women.. had to form their own independent movement if the vote was to be won and to find new ways of breathing life into the women’s suffrage campaign.† Pankhurst disagreed with the ways of the NUWSS led by Millicent Garrett Fawcett. NUWSS had adopted peaceful and â€Å"ladylike† conventional methods of campaigning and also recruited men for various positions. According to Purvis (2003), â€Å"Emmeline was convince d that a fresh approach was needed and that women had to do the work themselves.† This led to the formation of the WSPU. It was made clear that the WSPU would be different from the NUWSS. They pledged to limit the membership to women only and to be satisfied with nothing but action. As Purvis (2003) writes, â€Å"Deeds, not words† was adopted as the main motto of the WSPU.

Describe your professional progress to this point as well as your Essay

Describe your professional progress to this point as well as your short-term and long-term career goals. How do you expect Fordham Business to benefit your future career needs - Essay Example Finance has always been my area of interest, and I think this is the right time for me to go further in this field as I have not only completed my graduation but I am also determined to establish my professional career as a skilled financial expert and accountant. My family’s professional background has shaped my overall personality, as well as my interest in finance and accounting. Both of my parents have been engaged in business and finance related work since my childhood. Therefore, I have had more exposure to the world of business than many of my peers. When I was little, I often heard from my parents some interesting terms related to business, such as import and export, finance, FDI, and so on. It kindled my curiosity and made me want to learn more, which in turn helped me shape my thoughts about my professional career, so I aimed to become a skilled accountant. Moving to New York City, the world center of business and finance, gave me a new perspective. I came to NYC in 2008, at a time when the world was battling the most severe financial and economic crisis. I asked myself, â€Å"Why does finance have such a strong power on economy? How is everything interconnected?† In search of answers and trying to make the best use of the many opportunities the city offers, I interned at the global headquarters of Ernst & Young during my high school summer vacation of 2010. The few weeks at its financial service department not only helped me understand the way different business verticals are connected, but also reaffirmed my determination to study finance and business management in college. With great interest in business and finance and with excellent academic performance, I was admitted to NYU Stern School of Business in 2011, majoring in both Finance and General Accounting. Through my four-year education at NYU Stern School of Business and internships at different

Trends in International Mathematics and Science Study (TIMSS) Essay Example for Free

Trends in International Mathematics and Science Study (TIMSS) Essay The Trends in International Mathematics and Science Study (TIMSS) is an international comparative assessment about mathematics and science education that is organized by the International Association for the Evaluation of Educational Achievement (IEA). The survey has been administered periodically in cycles of 4 years since 1995. Initially TIMSS was an acronym for the Third International Mathematics and Science Study, which identified its position as the third study following the First and Second International Mathematics and Science Studies (FIMS SIMS) in 1964 and 1982 respectively. A similar study to the 1995 TIMSS (using the same technical framework) was carried out in 1999, and was referred to as the Third International Mathematics and Science Study Repeat (TIMSS-R). The 2003 study was the third cycle of studies based on the 1995 assessment framework, and the acronym TIMSS was redefined to mean Trends in International Mathematics and Science Study (http://nces.ed.gov/timss). With funding from the U.S. National Science Foundation, the TIMSS assessment was to be offered more timely in intervals of 4 years. Table 1 gives an overview on the TIMSS assessment, target populations, and the number of countries that participated in each administration. Table 1. TIMSS assessments and participating countries at the 8th grade level Study Name Acronym Year Number of Countries Target population Grades tested Third International Mathematics and Science Study TIMSS 1994/5 42 3rd /4th, 7th/8th , 12th Third International Mathematics and Science Study Repeat. TIMSS-R 1998/9 40 8th Trends in International Mathematics and Science Study TIMSS 2002/3 46 4th 8th Trends in International Mathematics and Science Study TIMSS 2006/7 Over 60 4th, 8th, (12th rescheduled 2008) TIMSS is considered the largest, most comprehensive, rigorous, and extensive international comparative educational study ever conducted (Alejandro, 2000). It touches on almost every facet of the learning of science and mathematics. The 2003 TIMSS project was comprised of over 360 000 students, over 38 000 teachers, and over 12 000 school principals, and as many as 1 500 contextual variables were included in addition to variables on student achievement scores (Nelson, 2002; TIMSS‟ User guide 2003). TIMSS aims at providing policy makers and educational practitioners with information and indicators about their national educational systems from an international perspective. Alejandro argues that TIMSS serves a â€Å"mirror† function to participating countries to reflect comparatively on their education systems. Martin and Kelly (2004) suggest that TIMSS tests go beyond measuring achievement to including a thorough investigation of curriculum and how it is delivered in classrooms around the world. In a nutshell, the assessment is perceived to be valid and reliable as a measure of student achievement. However, the TIMSS assessments are not without critics. Among the critical voices is that of Wolf (2002) who questions the validity issues of the TIMSS studies. His contention is that TIMSS, being an international assessment, may have testing procedures that are not appropriate for some countries‟ usual testing practices. Related to that, Zuzovsky (2000) specifically questions the reliability of these tests. He argues that the heavily elaborated coding systems inherent in the TIMSS scoring procedures yield lower inter-rater consistency and also that translation of achievement tests into different languages brings the reliability of the assessments into question. The downside of cross-sectional assessments such as the TIMSS projects did not escape the attention of de Lange (2007) who questions the assumption behind international studies that a single test can give comparable measures of curriculum effects across countries. In spite of these criticisms, Alejandro, the chairman of IEA, sees the worth in countries participating in the TIMSS surveys. He argues that â€Å"More than just league tables, the TIMSS data place achievement in an international context where it can be considered from multiple perspectives† (Alejandro, 2000, p. 2). A similar statement was expressed more than 35 years ago by Bock (1970). He perceived the world as shrinking through technology. In support of international studies, he argued that through participation in international studies and by sharing educational reports, countries get a glimpse of each other‟s cultural practices. The TIMSS international reports give an overall impression of the impact that different education factors have on students‟ performance in different countries. It is by further engaging in secondary analysis of the TIMSS data and by conducting further studies related to the findings of TIMSS assessments that countries better understand their schooling system. In particular, it is important to identify areas of concern and address those systematically rather than attempt to replicate another country`s curriculum system simply because the schooling system there seems to be effective. Education indicators are numerous and vary in their effect from country to country. It is possible that each of the 1,500 contextual variables administered in the TIMSS surveys were included because of some supporting literature on their influence on students‟ learning. TIMSS as model of Educational Achievement The literature on models of educational indicators and their performance as a system together with research studies that model student learning achievement as a function of the characteristics of their schools and their family background is extensive (Oakes, 2006; Kaplan Elliott, 2007; Kaplan Kreisman, 2000; Koller, Baumert, Clausen, Hosenfeld, 2001). However, in spite of the extensive literature on the subject of modeling of educational data, no single model of educational performance has gained widespread acceptance (Oakes, 2006; Nelson, 2002). This lack of a global model was noted by Nelson in relation to the TIMSS projects, that, although rigorously executed, and with all its popularity (with more participants than any other IEA study), TIMSS has not attempted to come up with a prescriptive model that relates educational factors to student achievement that can be applicable across nations. Nelson is adamant that any attempt to provide a universal model would not be wise because countries differ in their educational policies and instructional practices so that a one-size fits- all model would not be realistic. That said, though models of educational performance seem diverse as suggested by the literature, in Haertel, Walberg, and Weinstein‟s (2003) view, they have more commonalities than differences. Haertel et al. conducted a meta-analysis of studies that modeled school performance data and found that the presented models had a common structure. Though the models differed in their specifications, their structures were comprised of three categories of pre-existing conditions (cognitive/affective attributes and resources), instructional processes (opportunity to learn, quality of instruction), and outcome measures (achievement, affective behaviors). These models presented student performance as a function of student, teacher, and/or school background variables. Studies of interest to my research are those that modeled students‟ performance as a function of their background variables; the model of interest that informed my variable selection is the Input-Process-Output (IPO) model by Oakes (2006), or Rand Model (Shavelson, McDonnell, Oakes, 2006). The IPO model has similar structural components as the models that were reviewed by Haertel et al. (2003) and models student achievement as a function of some resources. I selected this model for my conceptual framework because of its scope of coverage of educational indicators. The model presents a holistic conception of student learning in a classroom setting and it appears frequently in literature that analyzes large scale data (e.g. Kaplan and Kreisman, 2000; Koller, Baumert, Clausen, Hosenfeld, 2001 analyzing TIMSS data). Additionally, it has been used extensively to guide education researchers in the selection, specification, and analysis of educational variables that correlate with student learning outcomes (Kaplan Elliott, 2007; Kaplan Kreisman, 2000; Koller, Baumert, Clausen, Hosenfeld, 2001). It is taken as one of the influential models in shaping public opinion and policy on how to foster school improvement. TIMSS Input-Process-Output Model The input-process-output (IPO) model by TIMSS is one of the improved versions of the traditional input-output (IO) models of school organizational data (Glasman, Biniaminov, 2001). Glasman and Biniaminov reported that the input-output traditional model employed research strategies that measured changes in the systems‟ outputs brought about by changes in the systems‟ inputs. The IO model was criticized for not taking the academic environment into account and for oversimplifying the schooling process by portraying it as linear. According to Glasman and Biniaminov, â€Å"the input-output analyses [did] not deal with characteristics of the dynamic and ongoing interrelationships between students and teachers or those among students themselves† (p. 509). To overcome the problem, Oakes‟ model added a third component (processes) that mediated the input variables into the output variables and that also provided an educational context for the model. The process component focuses on classroom characteristics such as instructional quality issues (explained in the next section under measures for the model). Oakes‟ model is therefore comprised of three components of an educational system: inputs, processes, and outputs (IPO) (Figure1). Figure 1. A comprehensive Model of an Educational System INPUTS PROCESSES OUTPUTS Fiscal and Curriculum Achievement other quality resources School quality Instructional Participation Quality Dropouts Teacher Characteristics Teaching quality Student Attitudes Background Aspirations Note. The arrows indicate the direction of effect Briefly stated, according to Shavelson, McDonnell, and Oakes, (2001) â€Å"the TIMSS model‟s inputs are the human and financial resources available to education† (p. 13): This includes teacher quality (e.g. certification and experience), student background (e.g. parents‟ education and home possessions), and school quality (e.g. school climate). â€Å"Its processes are what is taught and how it is taught† (p. 13): This includes classroom characteristics such as curriculum quality (e.g. pace and coverage of materials), teaching quality (e.g. integration between teacher, pupil, and materials), and instructional quality (e.g. instructional tasks, teaching methods, and classroom climate) and â€Å"its outputs are the consequences of schooling for students from different backgrounds† (p. 13) such as academic achievement, participation (what percentage graduate versus drop out), and attitudes (e.g. any desires to continue studying math or career goals that are math related). The TIMSS model is complex and provides insight into how the various components of the education system relate to one another. As noted earlier, one of the shortcomings of the traditional input output model was its structure in which nested data was treated as though linear, and the TIMSS model addressed that problem. This was noted by Kaplan and Elliott that â€Å"the TIMSS‟ model, is one instantiation of the organizational structure of schooling that captures its hierarchical nature† (Kaplan, Elliott, 2007; p. 221). The two suggested that the model was multilevel in form and was testable through statistical methodologies that take the multilevel nature of educational data into consideration. Kaplan and Elliot used the model for their framework to propose a model-based approach for validating educational indicators that explicitly took into account the organizational features of schooling. The two contended from their model that it was not necessary for every indicator that has ever been suggested for collection to actually appear in the model. To them, it is the research questions and the goals for the investigations that should determine which indicators to include in a statistical model. Nevertheless, Oakes (2006) advised that a single indicator of each component of the educational system was inadequate. What was needed, in his view, was for each component to have indicators of all its most critical dimensions, and, â€Å"without a series of indicators that assesses all important facets of the schooling processes (the 3 components of the model), we can neither understand the system`s overall health nor determine the conditions under which a particular goal is met† (Oakes, 2006, p. 8). Oakes further observed that each of the three components appeared to be necessary but insufficient by itself to convey full information about school effects. That is, although a system of indicators measures distinct components of the education model, it also provides information about how the individual components work together to produce the overall effect. What can be deduced from Oake`s remarks is that studies that model only one component of the educational system may not be doing an adequate job of conveying the necessary information about the school effects. Conclusions What I considered informative from TIMSS and through the deliberations by Kaplan and Elliott (2007) about TIMSS`s model in general, and its use in particular, was how to utilize its structure to reach the different components of an education system holistically. It was of interest that the TIMSS model has flexible attributes in those variables could be rearranged to reflect the hierarchical nature of classroom data as evidenced in the current study in subsequent chapters. In one study, Kaplan and Kreisman (2000) used the TIMSS` model to validate indicators of mathematics education using its data. Rather than group their variables into the three distinct categories of Input-Process-Output as outlined in the model structure, they contended that since TIMSS` model was inherently multilevel, a subset of the inputs and processes occurred at higher levels of the education system. As a result, they grouped their indicators into three organizational levels: student, teacher, and school. That is to say, although TIMMS` model (Figure 1) groups school resources, teacher quality, and student background as one category of input (or prerequisite) variables, these indicators occur at different hierarchical levels of the school organization. Some of the variables included in the Kaplan and Kreisman model were: †¢Ã¯â‚¬  At student level: mathematics achievement, attitude toward mathematics, utility of mathematics, parents’ education, and mother’s expectations. †¢Ã¯â‚¬  At teacher level: method of instruction, teacher collaboration with colleagues, teacher’s level of education, and teaching experience. †¢Ã¯â‚¬  At school level: opportunities for continuing professional development, good facilities, school climate, level of discipline, and outstanding teacher recognition. Needless to say, Kaplan and Kreisman`s (2000) variables were representative of the three components of the IPO model even though the variables were grouped differently. Some of the variables they used were composite indicators. These were variables such as attitudes and methods of instruction. The two authors ran factor analyses to help group related items into the composite indicators and they had mathematics achievement as their outcome measure. In summary, TIMMS` model is more of a conceptual framework than a prescriptive one. That is, it does not prescribe what variables one should include in a statistical model for testing educational performance, but offers guidance about the components from which to draw the variables. Directions for Future Research TIMSS data have opened extensive avenues for further research work. In conclusion, this paper has evidenced the complexities involved in TIMSS data. It is hoped that this study and other studies that continue to model TIMSS data and pilot TIMSS instruments will help to illuminate the factors that explain student achievement in the us and in many other countries and to direct policy interventions.

Texting and driving Essay Example for Free

Texting and driving Essay I think texting and driving is dangerous and whether or not it has affected you as of now, statistics show it could in the future. Did you know that texting while driving is now one of the most common distractions that take a driver’s eyes off the road today? Imagine if someone in your family, your mom, dad, or sibling were killed by a driver who was texting, how would you feel? Would you think, was that text really worth losing a life over? I am going to show you that texting while driving is never a good idea and can have dangerous and deadly consequences’ for that individual. Problem: Texting while driving kill’s people on a daily basis. Recent statistics from 2009 show that 5,474 people in the United States were killed due to texting. This was a significant increase from 2007 when 3,210 people were killed in accidents where drivers were texting.(http://www.stoptextsstopwrecks.org/#facts) Teenagers are the most experienced drivers and when they read or write a text it compounds their likely hood of having a fatal accident. Statistics bears this out with this age group when texting and driving 45% of their accidents resulted in death. The Allstate Foundation’s recent survey showed that 82% of teens report texting while driving, while only 23% admit to drinking and driving which shows how common this practice is for this age group. According to data collected by the Insurance Institute for Highway Safety on (http://www.textndrive.com/, more teenagers die on May 20 than any other day of the year. Over the past five years, May 20 claimed 63% more lives than any average day because of prom and other end of the school year celebrations II. Cause: Driving and texting is considered a multi-tasked skill that increases the output of the driver’s brain causing distractions to our cognitive functions, memory, visual fields, and manually. The first way that texting interferes with drivers is through the brain’s cognitive functions that allow for multi-tasking. Driver’s attention span is split between what’s going on in the road and what’s happening on their cell phone, and this lack of focus makes them a liability for other drivers. Most people do not have the cognitive skills to manage two different multi-tasked processes at once.  This causes individuals brains to process too much mentally, making the information that is received unclear and hard for them to react quickly to events happening in their surroundings. Second way that texting interferes with driving is through memory. a. Memory is when the brain engages in a constant process that sends. III. Solution: There are many solutions to this problem and I will list a few: Unless you are on a long road trip, put your phone away until you arrive at your destination, if you have to text just pull over for a few minutes. There are apps for most phones that you can use to prevent if you are tempted to text while you are driving called anti-texting apps that can be utilized. If you are on a trip with more than yourself, designate a person that will be the texter, if you are driving have your passenger text for you so you can concentrate on the road. Silence your phone if you are one who has to look at your phone for every noise it makes. I have just taken you through the problems with texting and driving. Provided you with the statistics and presented you with possible dangers of texting and driving. I have given you alternatives to not only keep you safe but to also keep others safe too. Laws are being enacted due to the public outcry and most states are on board with legislation punishing drivers that text. But that would be a drop in the bucket should you be distracted and injure or kill someone when it could have been avoided. I hope that I have convinced you to join me in educating people to change their driving habits†¦ Silence can saves lives. References: BIBLIOGRAPHY \* MERGEFORMAT Stop the Texys Stop the Wrecks. (2014). From Stoptextsstopwrecks: www.stoptextstopwrecks.org www.stoptextstopwrecks.org. (2014). From www.stoptextstopwrecks.org www.textndrive.com. (2014). From www.textndrive.com: www.textndrive.com/wordpress/2010/05/may-20-is-deadliest-day-for-american-teen-drivers/ Here is the link to my Persuasive speech: http://youtu.be/dgCanjzytFs

Oxford Movement and the Church

Oxford Movement and the Church Article reprinted from Cross Way Issue Autumn 2008 No. 110 (C)opyright Church Society; material may be used for non-profit purposes provided that the source is acknowledged and the text is not altered. THE OXFORD MOVEMENT By David Phillips It is likely that we will see a growing interest in the Oxford Movement in the wake of proposals by Roman Catholics to declare one of its founders a saint. The early part of the 19th century was a period of great social change in Europe and the role of the Church was being weakened and threatened. However, some reform was necessary and parliament took the lead. In 1833 a Bill was passed to abolish two archbishoprics and eight bishoprics in Ireland. Whilst the decision was reasonable not least because of the problems in Ireland it was for some the straw which broke the camels back. There were those who believed this was unwarranted interference by the state in the affairs of the Church and demonstrated the weakness of the Church. John Keble responded with a sermon in the University Church in Oxford entitled national apostacy and he found support from three other Oxford men in particular John Henry Newman, Hurrell Froude and William Palmer. In September 1833 these men began to publish Tracts which were referred to as The Oxford Tracts giving rise to the later name The Oxford Movement. It is said that the chief concern of the Oxford men was the dignity of the Church and they argued in the Tracts that it was sacrilege for non-Church bodies to lay hands on the Church. They also had a strong aversion to the emerging liberalism and a desire for personal holiness. In these things they would have found sympathisers amongst Evangelicals but this was not all that surfaced in the Tracts. At the time High Church referred to those who had a high regard for the Church and its ways including establishment and its Protestantism. Thus High Churchmen were split in their response to the new movement. Some warmed to what was said about the nature and dignity of the Church whilst others saw that it would lead to disestablishment and indeed to some Roman practices at least. The impact of the movement was such that the old distinction of high church was largely lost and the term came to be associated with the Tractarians. The authorities in Oxford also distanced themselves from the Tracts and from any association of the name with the university. Historians will sometimes say that Evangelicals were slow to respond or even ill equipped to do so, but this is clearly not the case. The robustly evangelical newspaper The Record (later to become The Church of England Newspaper) commented on a letter sent by the Oxford men to the Archbishop of Canterbury and then later on the early Tracts in its December issues of 1833. We must confess the surprise was extreme and the sorrow poignant with which we read the tracts of the Apostolical Society at Oxford, extracts from which appeared in our last number. Had we not read them with our own eyes, it would have been difficult to persuade us that such effusions could have escaped, at any time, from the pen of Protestant clergymen The Record attacks the Oxford men on apostolic succession not because Evangelicals rejected the idea but because the Oxford men were touting the Roman view of succession. As a Protestant Church the Church of England, cannot nor would it wish to claim such succession and to do so was sheer folly. They also state that the Tracts talk of clergymen conveying the sacrifice, being intrusted with the keys of heaven and hell and being intrusted with the awful and mysterious gift of making the bread and wine Christs body and blood. The editorial describes all these as melancholy and wicked Popish delusions. Thus right from the outset Evangelicals, or at least some of them, saw the errors and responded to them, a fact that is not always recognised. Shortly afterwards Hurrell Froude, one of the original four died and his theological remains were published in 1838. These showed unequivocally his opposition to the Protestant Reformation and his empathy for Medieval Catholicism. This seems to have woken others up to the real heart of the Tractarians who were becoming increasingly critical of the Church of England and idealistic regarding the Church of Rome. In 1841 Newman published his famous Tract 90 attempting to argue that the Articles, if properly understood, support Roman Catholic doctrine. Newman himself seems to have eventually recognised that his arguments were wrong because he left for Rome but others continued and still continue to argue the same points. I recall one clergyman arguing that his belief in purgatory was acceptable because the Articles denounce the Romish doctrine of purgatory and that was not his doctrine. Eventually this perverse sort of reasoning had to be resolved and evangelicals found that they had to resort to law to do so. Evangelicals at the time, as today, were adamant that they were the legitimate Anglicans, the true heirs of the Reformed Church of England. The case of George Gorham therefore shook the movement to its roots. Bishop Philpotts of Exeter despised Evangelicals and when a Patron attempted to present Gorham to a living in the Diocese the Bishop argued and then set out to prove that Gorham did not hold to the doctrine of the Church on baptismal regeneration. This was serious because no evangelical believed in baptismal regeneration and nor did they believe that it was the doctrine of the church. If Gorham was rejected on this basis then all evangelicals could find themselves driven out. An appeal was therefore launched but the Bishops decision was initially upheld. Evangelicals however contested the issue right to the Privy Council where they won. For Anglo-Catholics this demonstrated the problem of establishment that a secular court, as they saw it, had the final say. For Evangelicals it was a reminder that within the Church hierarchy they were weak and often opposed whilst they had much stronger support amongst the laity, and particularly in parliament. More importantly it demonstrated that men like Philpotts could not be trusted to read the Articles and Prayer Book in its plain historical meaning, revisionism had begun. From an early stage Tractarianism was manifest in Ritualism and they founded the Church Union to promote their cause. In 1865 Evangelicals responded by forming the Church Association which from the outset had amongst its aims the goal of clarifying the law on ritual and doctrine. Thus a series of test cases were fought which mostly, though certainly not in every detail, upheld the Evangelical view. This ought to have settled matters, but of course it did not. The Ritualists still refused to abide by the law. The obvious thing would have been for Bishops to remove such clergy from office but the Bishops generally declined to do this. This failure to discipline has plagued the Church of England down to the present and has encouraged all manner of practices and beliefs to flourish unchecked. The problem therefore for Evangelicals was what to do next and this led to division amongst them. The Church Association believed it must fight on and so they took the matters to the courts. The fact was that the law forbade certain practices and the Ritualists were doing them. Therefore the courts instructed the Ritualists to stop and they did not. If the law was to be upheld then there had to be a final recourse when people refused to obey it and thus some clergy were imprisoned. But many Evangelicals either did not like this approach either because they did not like taking the matter to court in this way or because they feared the outcome. Thus J.C. Ryle in particular encouraged the creation of a new body, The Protestant Churchmens Alliance, which absorbed the earlier Protestant Association. The Alliance also fought ritualism but not to the lengths the Association did. The Alliance merged eventually into the National Church League and thus was finally reunited with the Association in 1950 when both became Church Society. With the benefit of hindsight it is possible to see that the fears of many were realised because the imprisonments led to a swing in public opinion in favour of the Ritualists. At the same time the Association, as a primarily lay organisation, tried to do what the Bishops failed to do, which was preserve discipline as a mark of the Church. Today many of the practices that were opposed by our evangelical forebears are common within the Church of England and are even found, sometimes unwittingly, in evangelical churches. David Phillips is General Secretary of Church Society.

The Awakening :: essays research papers

Edna Pontellier The Awakening, which was written by Kate Chopin, received a great deal of criticism when it was first published in 1899. Much of the controversy over the novel arose because of the character of Edna Pontellier. Edna was very much unlike the women of her time. In today's terms she would be considered a rebel. Edna opposed the traditional roles of society that kept many restraints on the women of the 1800's. According to traditional society of the 1800's women were assigned the duties of tending the home, caring for their husband, and bearing children. On the other hand, the men of this time were to be considered the authority of the household and were basically in charge of what goes on throughout the household internally and externally as well as mentally and physically. It is Edna's choice to disobey these roles and her need for self-discovery, which cause a shocking end to this adventure to find her true self. In her critique, the female artist in Kate Chopin's The Awakening: Birth and Creativity, Carlene Stone takes the reader through stages of Edna's struggle to become an artist showing direct correlation with her becoming and individual and in control of her own self. For example she states how Robert's encouragement while she is painting is very innocent in the beginning but eventually lead's to the awakening of her passions of her body and her falling in love with Robert. The fact that Edna falls for Robert goes against those societal roles which where followed by some many women of the 1800's. Robert plays a big role in Edna's self-development through artistry and love by being a huge source of imaginative power. Stone then goes on making references to the scene in which she grows tired during Mass and leaves with Robert who takes her to Madame Antoine's home. She states that stories told by Madame Antoine represents the oral tradition of art and that this day is the high point o f Edna's imagination and she will return to it in her memory as she paints. Another form of art in which Stone refers to is structured art, which is supplied by Mme. Reisz. Mme. Reisz plays her music with great feeling and art, which evokes pictures in Eden's mind and her passions of her body, arise once again. These pictures and passions once again contribute greatly to the continuing development of Edna's artistic growth, which continues to lead to her self-discovery.

Essay --

The article grants the macroeconomic indicators influences on profitability of firm’s earnings on KSE 100 index (construction and material).the macroeconomic indicators include FDI, INTEREST RATE, EXPORT, and IMPORT. In this study we are taking 19 companies regarding construction and materials listed in KSE 100 index. To check the effect of Profitability on firms earnings through EBIT, ROE, ROA. Fertility in construction and material sector market plays a vital role in the economy of Pakistan, thus profitability is important for responsive construction and materials sector in KSE 100 index. According to a paper done, whose intension to find out the effect of macroeconomic gages on small and medium enterprises effectiveness which indicates that In contemporary years, Lithuania applies considerable interest to SME’S productivity, but investigation associated to the valuation of complicated macro aspects and their impact on the concluding performance of Small and Medium Enterprises is not satisfactory. (Bekeris, 2012) It has been observed that FDI has positive impression on firms out...

Digital Fortress Chapter 63-65

Chapter 63 Becker's newly purchased Vespa motorcycle struggled up the entry road to Aeropuerto de Sevilla. His knuckles had been white the whole way. His watch read just after 2:00 a.m. local time. As he approached the main terminal, he rode up on the sidewalk and jumped off the bike while it was still moving. It clattered to the pavement and sputtered to a stop. Becker dashed on rubbery legs through the revolving door. Never again, he swore to himself. The terminal was sterile and starkly lit. Except for a janitor buffing the floor, the place was deserted. Across the concourse, a ticket agent was closing down the Iberia Airlines counter. Becker took it as a bad sign. He ran over. â€Å"El vuelo a los Estados Unidos?† The attractive Andalusian woman behind the counter looked up and smiled apologetically. â€Å"Acaba de salir. You just missed it.† Her words hung in the air for a long moment. I missed it. Becker's shoulders slumped. â€Å"Was there standby room on the flight?† â€Å"Plenty,† the woman smiled. â€Å"Almost empty. But tomorrow's eight a.m. also has-â€Å" â€Å"I need to know if a friend of mine made that flight. She was flying standby.† The woman frowned. â€Å"I'm sorry, sir. There were several standby passengers tonight, but our privacy clause states-â€Å" â€Å"It's very important,† Becker urged. â€Å"I just need to know if she made the flight. That's all.† The woman gave a sympathetic nod. â€Å"Lovers' quarrel?† Becker thought a moment. Then he gave her a sheepish grin. â€Å"It's that obvious?† She gave him a wink. â€Å"What's her name?† â€Å"Megan,† he replied sadly. The agent smiled. â€Å"Does your lady friend have a last name?† Becker exhaled slowly. Yes, but I don't know it!† Actually, it's kind of a complicated situation. You said the plane was almost empty. Maybe you could-â€Å" â€Å"Without a last name I really can't†¦Ã¢â‚¬  â€Å"Actually,† Becker interrupted, having another idea. â€Å"Have you been on all night?† The woman nodded. â€Å"Seven to seven.† â€Å"Then maybe you saw her. She's a young girl. Maybe fifteen or sixteen? Her hair was-† Before the words left his mouth, Becker realized his mistake. The agent's eyes narrowed. â€Å"Your lover is fifteen years old?† â€Å"No!† Becker gasped. â€Å"I mean†¦Ã¢â‚¬  Shit. â€Å"If you could just help me, it's very important.† â€Å"I'm sorry,† the woman said coldly. â€Å"It's not the way it sounds. If you could just-â€Å" â€Å"Good night, sir.† The woman yanked the metal grate down over the counter and disappeared into a back room. Becker groaned and stared skyward. Smooth, David. Very smooth. He scanned the open concourse. Nothing. She must have sold the ring and made the flight. He headed for the custodian. â€Å"Has visto a una nina?† he called over the sound of the tile buffer. â€Å"Have you seen a girl?† The old man reached down and killed the machine. â€Å"Eh?† â€Å"Una nina?† Becker repeated. â€Å"Pelo rojo, azul, y blanco. Red white and blue hair.† The custodian laughed. â€Å"Que fea. Sounds ugly.† He shook his head and went back to work. David Becker stood in the middle of the deserted airport concourse and wondered what to do next. The evening had been a comedy of errors. Strathmore's words pounded in his head: Don't call until you have the ring. A profound exhaustion settled over him. If Megan sold the ring and made the flight, there was no telling who had the ring now. Becker closed his eyes and tried to focus. What's my next move? He decided to consider it in a moment. First, he needed to make a long-overdue trip to a rest room. Chapter 64 Susan stood alone in the dimly lit silence of Node 3. The task at hand was simple: Access Hale's terminal, locate his key, and then delete all of his communication with Tankado. There could be no hint of Digital Fortress anywhere. Susan's initial fears of saving the key and unlocking Digital Fortress were nagging at her again. She felt uneasy tempting fate; they'd been lucky so far. North Dakota had miraculously appeared right under their noses and been trapped. The only remaining question was David; he had to find the other pass-key. Susan hoped he was making progress. As she made her way deeper into Node 3, Susan tried to clear her mind. It was odd that she felt uneasy in such a familiar space. Everything in Node 3 seemed foreign in the dark. But there was something else. Susan felt a momentary hesitation and glanced back at the inoperable doors. There was no escape. Twenty minutes, she thought. As she turned toward Hale's terminal, she noticed a strange, musky odor-it was definitely not a Node 3 smell. She wondered if maybe the deionizer was malfunctioning. The smell was vaguely familiar, and with it came an unsettling chill. She pictured Hale locked below in his enormous steaming cell. Did he set something on fire? She looked up at the vents and sniffed. But the odor seemed to be coming from nearby. Susan glanced toward the latticed doors of the kitchenette. And in an instant she recognized the smell. It was cologne†¦ and sweat. She recoiled instinctively, not prepared for what she saw. From behind the lattice slats of the kitchenette, two eyes stared out at her. It only took an instant for the horrifying truth to hit her. Greg Hale was not locked on the sublevels-he was in Node 3! He'd slipped upstairs before Strathmore closed the trapdoor. He'd been strong enough to open the doors all by himself. Susan had once heard that raw terror was paralyzing-she now knew that was a myth. In the same instant her brain grasped what was happening, she was in motion-stumbling backward through the dark with a single thought in mind: escape. The crash behind her was instantaneous. Hale had been sitting silently on the stove and extended his legs like two battering rams. The doors exploded off their hinges. Hale launched himself into the room and thundered after her with powerful strides. Susan knocked over a lamp behind her, attempting to trip Hale as he moved toward her. She sensed him vault it effortlessly. Hale was gaining quickly. When his right arm circled her waist from behind, it felt like she'd hit a steel bar. She gasped in pain as the wind went out of her. His biceps flexed against her rib cage. Susan resisted and began twisting wildly. Somehow her elbow struck cartilage. Hale released his grip, his hands clutching his nose. He fell to his knees, hands cupped over his face. â€Å"Son of a-† He screamed in pain. Susan dashed onto the door's pressure plates saying a fruitless prayer that Strathmore would in that instant restore power and the doors would spring open. Instead, she found herself pounding against the glass. Hale lumbered toward her, his nose covered with blood. In an instant, his hands were around her again-one of them clamped firmly on her left breast and the other on her midsection. He yanked her away from the door. She screamed, her hand outstretched in futile attempt to stop him. He pulled her backward, his belt buckle digging into her spine. Susan couldn't believe his strength. He dragged her back across the carpet, and her shoes came off. In one fluid motion, Hale lifted her and dumped her on the floor next to his terminal. Susan was suddenly on her back, her skirt bunched high on her hips. The top button of her blouse had released, and her chest was heaving in the bluish light. She stared up in terror as Hale straddled her, pinning her down. She couldn't decipher the look in his eyes. It looked like fear. Or was it anger? His eyes bore into her body. She felt a new wave of panic. Hale sat firmly on her midsection, staring down at her with an icy glare. Everything Susan had ever learned about self-defense was suddenly racing through her mind. She tried to fight, but her body did not respond. She was numb. She closed her eyes. Oh, please, God. No! Chapter 65 Brinkerhoff paced Midge's office. â€Å"Nobody bypasses Gauntlet. It's impossible!† â€Å"Wrong,† she fired back. â€Å"I just talked to Jabba. He said he installed a bypass switch last year.† The PA looked doubtful. â€Å"I never heard that.† â€Å"Nobody did. It was hush-hush.† â€Å"Midge,† Brinkerhoff argued, â€Å"Jabba's compulsive about security! He would never put in a switch to bypass-â€Å" â€Å"Strathmore made him do it,† she interrupted. Brinkerhoff could almost hear her mind clicking. â€Å"Remember last year,† she asked, â€Å"when Strathmore was working on that anti-Semitic terrorist ring in California?† Brinkerhoff nodded. It had been one of Strathmore's major coups last year. Using TRANSLTR to decrypt an intercepted code, he had uncovered a plot to bomb a Hebrew school in Los Angeles. He decrypted the terrorist's message only twelve minutes before the bomb went off, and using some fast phone work, he saved three hundred schoolchildren. â€Å"Get this,† Midge said, lowering her voice unnecessarily. â€Å"Jabba said Strathmore intercepted that terrorist code six hours before that bomb went off.† Brinkerhoff's jaw dropped. â€Å"But†¦ then why did he wait-â€Å" â€Å"Because he couldn't get TRANSLTR to decrypt the file. He tried, but Gauntlet kept rejecting it. It was encrypted with some new public key algorithm that the filters hadn't seen yet. It took Jabba almost six hours to adjust them.† Brinkerhoff looked stunned. â€Å"Strathmore was furious. He made Jabba install a bypass switch in Gauntlet in case it ever happened again.† â€Å"Jesus.† Brinkerhoff whistled. â€Å"I had no idea.† Then his eyes narrowed. â€Å"So what's your point?† â€Å"I think Strathmore used the switch today†¦ to process a file that Gauntlet rejected.† â€Å"So? That's what the switch is for, right?† Midge shook her head. â€Å"Not if the file in question is a virus.† Brinkerhoff jumped. â€Å"A virus? Who said anything about a virus!† â€Å"It's the only explanation,† she said. â€Å"Jabba said a virus is the only thing that could keep TRANSLTR running this long, so-â€Å" â€Å"Wait a minute!† Brinkerhoff flashed her the time-out sign. â€Å"Strathmore said everything's fine!† â€Å"He's lying.† Brinkerhoff was lost. â€Å"You're saying Strathmore intentionally let a virus into TRANSLTR?† â€Å"No,† she snapped. â€Å"I don't think he knew it was a virus. I think he was tricked.† Brinkerhoff was speechless. Midge Milken was definitely losing it. â€Å"It explains a lot,† she insisted. â€Å"It explains what he's been doing in there all night.† â€Å"Planting viruses in his own computer?† â€Å"No,† she said, annoyed. â€Å"Trying to cover up his mistake! And now he can't abort TRANSLTR and get aux power back because the virus has the processors locked down!† Brinkerhoff rolled his eyes. Midge had gone nuts in the past, but never like this. He tried to calm her. â€Å"Jabba doesn't seem to be too worried.† â€Å"Jabba's a fool,† she hissed. Brinkerhoff looked surprised. Nobody had ever called Jabba a fool-a pig maybe, but never a fool. â€Å"You're trusting feminine intuition over Jabba's advanced degrees in anti-invasive programming?† She eyed him harshly. Brinkerhoff held up his hands in surrender. â€Å"Never mind. I take it back.† He didn't need to be reminded of Midge's uncanny ability to sense disaster. â€Å"Midge,† he begged. â€Å"I know you hate Strathmore, but-â€Å" â€Å"This has nothing to do with Strathmore!† Midge was in overdrive. â€Å"The first thing we need to do is confirm Strathmore bypassed Gauntlet. Then we call the director.† â€Å"Great.† Brinkerhoff moaned. â€Å"I'll call Strathmore and ask him to send us a signed statement.† â€Å"No,† she replied, ignoring his sarcasm. â€Å"Strathmore's lied to us once already today.† She glanced up, her eyes probing his. â€Å"Do you have keys to Fontaine's office? â€Å"Of course. I'm his PA.† â€Å"I need them.† Brinkerhoff stared in disbelief. â€Å"Midge, there's no way in hell I'm letting you into Fontaine's office.† â€Å"You have to!† she demanded. Midge turned and started typing on Big Brother's keyboard. â€Å"I'm requesting a TRANSLTR queue list. If Strathmore manually bypassed Gauntlet, it'll show up on the printout.† â€Å"What does that have to do with Fontaine's office?† She spun and glared at him. â€Å"The queue list only prints to Fontaine's printer. You know that!† â€Å"That's because it's classified, Midge!† â€Å"This is an emergency. I need to see that list.† Brinkerhoff put his hands on her shoulders. â€Å"Midge, please settle down. You know I can't-â€Å" She huffed loudly and spun back to her keyboard. â€Å"I'm printing a queue list. I'm going to walk in, pick it up, and walk out. Now give me the key.† â€Å"Midge†¦Ã¢â‚¬  She finished typing and spun back to him. â€Å"Chad, the report prints in thirty seconds. Here's the deal. You give me the key. If Strathmore bypassed, we call security. If I'm wrong, I leave, and you can go smear marmalade all over Carmen Huerta.† She gave him a malicious glare and held out her hands for the keys. â€Å"I'm waiting.† Brinkerhoff groaned, regretting that he had called her back to check the Crypto report. He eyed her outstretched hand. â€Å"You're talking about classified information inside the director's private quarters. Do you have any idea what would happen if we got caught?† â€Å"The director is in South America.† â€Å"I'm sorry. I just can't.† Brinkerhoff crossed his arms and walked out. Midge stared after him, her gray eyes smoldering. â€Å"Oh, yes you can,† she whispered. Then she turned back to Big Brother and called up the video archives. Midge'll get over it, Brinkerhoff told himself as he settled in at his desk and started going over the rest of his reports. He couldn't be expected to hand out the director's keys whenever Midge got paranoid. He had just begun checking the COMSEC breakdowns when his thoughts were interrupted by the sound of voices coming from the other room. He set down his work and walked to his doorway. The main suite was dark-all except a dim shaft of grayish light from Midge's half-open door. He listened. The voices continued. They sounded excited. â€Å"Midge?† No response. He strode through the darkness to her workspace. The voices were vaguely familiar. He pushed the door open. The room was empty. Midge's chair was empty. The sound was coming from overhead. Brinkerhoff looked up at the video monitors and instantly felt ill. The same image was playing on each one of the twelve screens-a kind of perversely choreographed ballet. Brinkerhoff steadied himself on the back of Midge's chair and watched in horror. â€Å"Chad?† The voice was behind him. He spun and squinted into the darkness. Midge was standing kitty-corner across the main suite's reception area in front of the director's double doors. Her palm was outstretched. â€Å"The key, Chad.† Brinkerhoff flushed. He turned back to the monitors. He tried to block out the images overhead, but it was no use. He was everywhere, groaning with pleasure and eagerly fondling Carmen Huerta's small, honey-covered breasts.

Management Control Systems Final Written Case Assignment

Management Control Systems Final Written Case Assignment Budgeting and Performance Evaluation at the Berkshire Toy Company Prepared for: Karen M. Foust, Ph. D. , C. P. A. Adjunct Professor at Tulane University A. B. Freeman School of Business New Orleans, Louisiana Prepared by: Andres A. Calderon andres. [email  protected] com PO Box 21420 Baton Rouge, LA 70893 Date: September 4, 2000 Background Janet McKinley’s father, Franklin Berkshire, founded Berkshire Toy Company (BTC) in 1974.In 1988 Janet worked her way up to the position of Assistant to the President after completing her MBA. Janet promoted employee participation and teamwork. The company went public in 1991, and in 1993 Mr. Berkshire retired, leaving Janet as corporate CEO. In 1995 Quality Products Corporation, a company with a wide variety of products, acquired BTC for $23 million. Janet had an agreement that allowed her to continue to work for BTC for at least 5 years at an annual salary of $120,000.The company h ad a staff of 241 employees organized in three different departments: purchasing (11 employees managed by David Hall), production (175 employees managed by Bill Wilford), and marketing (52 employees managed by Rita Smith)1. BTC produces a fifteen-inch, fully jointed, washable, stuffed teddy bear. The bear is packaged in a designer box and is accompanied by an unconditional lifetime guarantee, and a piece of chocolate candy. The bears are accessorized according to customer order specifications. Internet sales began in 1997.Janet has just received the June 30, 1998 income statement showing Operating Income at $1,632,317 below budget, while Total Revenue is at $1,440,487 above budget (see Exhibit 1). Janet is having trouble understanding how the company’s revenue is thriving, but the company is not generating profits as expected. Current Situation BTC is a decentralized division of Quality Products Corporation that has been experiencing growth in sales over the past four years ( see Exhibit 2a). BTC’s strategy is to have an enhanced product image, build customer brand loyalty through product differentiation, and produce an all American quality product.BTC implemented a management compensation plan in 1997; the plan is structured as follows: †¢ †¢ David at Purchasing: 20% of net materials price variance, assuming favorable Rita at Marketing: 10% of excess variance of net revenue, assuming favorable 1 The remaining three employees are Janet, her secretary, and her secretary’s assistant †¢ Bill at Production: 3% of net variance in material, labor, variable overhead, labor rate variance, and the variable and fixed overhead spending, assuming favorable variancesThe bear is hand made and the quality of material acquired by purchasing can negatively affect production generating excess waste or potentially jeopardizing the quality of the product. Marketing sells the bear through catalogs, company’s retail store adjacent to the fa ctory, Internet sales, wholesale to department stores, toy boutiques, and other specialty retailers. Most orders are shipped the same day as they are received. Commissions of 3% are paid on retail store sales and sales to wholesale buyers, no commissions are paid on catalog sales.Internet sales began in 1997 with bears being sold at a wholesale price of $32. The Marketing and the Purchasing departments seem to be operating well, but the Production department manager has identified the following problems: production was affected by materials ruined during flood, raw material is substandard, high rate of product stock-out, deviations from standard production plans, overtime to met sale demands is high, overworked staff, plant is at maximum capacity, and maintenance is almost impossible to be scheduled. Analysis of the Case Non-quantitativeBTC could work an alliance with its supplier in such a way that raw material is guaranteed to meet high levels of quality. Currently Bill in product ion receives the raw material from David at purchasing, so inspections for defective material happen at the time of production and under the pressure of orders piling up awaiting production. David does not have any incentive to provide quality, but just to reduce his cost. Current incentive plan is not working to the advantage of the Production department, it is not fair to have bonus linked to factors that cannot be controlled by the responsible manager.Incentives are structured in such a way that they encourage â€Å"low balling† revenue figures by the Marketing and â€Å"high balling† raw material price budgets by the Purchasing manager. A budget of zero sales to be achieved by the Internet deployment, supported by an expensive national radio campaign, is not acceptable and should not be rewarded. Quantitative Analysis The favorable sale revenue of $1,440,487 can be explained by a favorable impact of Internet sales2 (+307%), an unfavorable effect of the Retail and C atalog sales (-214%), and a negligible budget variance (+7%) explained by the Wholesale efforts.Ninety one percent (equivalent to $2,300,980) of the unfavorable Total Variable Cost variance ($2,515,896) can be attributed to unfavorable variances in: Direct Labor (39% or $980,305), Variable Overhead (27% or $679,361), and Variable Selling Expense (25% or $641,314) (See Exhibit 4). Almost the entire unfavorable variance of fixed cost can be attributed to the unfavorable variance in Selling Expenses. The Direct Labor3 variance is mainly due to a variance of 42% (from 1. 2 budgeted to 1. 7 actual) labor hours per unit and a variance in salary rate from $8. 0 budgeted vs. $8. 17 actual. The Variable Overhead also affected by the unfavorable 1. 7 hours per unit of direct labor, contributed with an unfavorable amount of $181,639 (see Exhibit 6c). The Variable Overhead Cost per Hour went up due to the additional overhead. The Variable Selling Expense caused an unfavorable variance of $ 443, 100 due to the added cost per unit (see Exhibit 6c). Average price per unit sold $44. 37 compared to a $46. 45 budget. The mix variance stemmed mostly from a price difference between Retail & Catalog ($49) and Internet ($42) sales.The 280,000 units are distributed between Retail & Catalog (85%) and Wholesale (15%) sales. Using the Static Budget Mix expected sales are of $15,122,083 (see Exhibit 5). Fixed Cost Selling Expenses caused an unfavorable variance of $560,192 to the budget, compared to a negligible favorable increase of $261 to budget due to the Fixed Cost Administrative Expense. 4 Almost half ($225,627 favorable) of this unfavorable variance is counteracted by the higher than budgeted output and a fixed manufacturing overhead per unit of $ 1. 674 compared against the budgeted $1. 97. The overall unfavorable $114,910 Fixed Manufacturing Overhead is due to the variance in labor hours per unit. Due to 2 3 Or better said a very unrealistic â€Å"low ball† budget of Inte rnet sales I attribute this to the fact that the company works on an â€Å"order received basis†, instead of forecasting production. the incentive structure at BTC, David Hall has been buying â€Å"cheap† polyester filling and accessories, causing an unfavorable price efficiency variance of $49,609.Sales and Total Cost unfavorable variance of $ 2,669,607, compared to $1,632,317 budgeted can be attributed to poor sales mix performance (unfavorable Budgeted Sales Variance $675,589) and unfavorable Labor Volume Variance ($437,338)5. Incentive Program It is my opinion that the incentive program at BTC is the major contributor to the unfavorable variances. David Hall is rewarded for purchasing â€Å"cheap† raw material, which is affecting production. Rita is rewarded for selling products over the Internet at prices that are not appropriate.For a bonus allocation in dollars please refer to Exhibit 7, Incentive Plan (better named: â€Å"Let’s all gang against p oor old Bill†). While David pockets $9,636. 62 ($48,183 @ 20%) by purchasing substandard polyester fillings for the bear, Bill looses $2K due to additional filler required for production of a quality bear. There is no reasoning on how Rita sets the price for the Internet bear. Rita set a low price on the bear causing an unfavorable mix variance and there is no reasoning on how she established the budgets; overall she is favored by both moves, hurting the company’s profits. OvertimeThis is due to the inefficient use of labor, adding to the low morale of the employees. The unit labor requirement went from 1. 2 to 1. 7 due to the poor quality of raw material. The pay rate went up 17 cents due to new hires that had to be enticed to work at BTC. All these problems can be associated with the order base production scheduling, causing a â€Å"knew jerk reaction† in the system every time a new order is received, forcing employees to work overtime (See Exhibit 8 for more d etails). The case makes it clear that there have been no technology improvements in the past five years at BTC.Fixed manufacturing overhead is favorable due to the higher volume of items sold, but it does not reflect on the performance of the firm, since this is due to the low Internet price. I assume that most of this expense is to cover the radio campaign and the Internet cost, increasing volume with no concerns on the effect on Production 5 I blame this on Rita for selling products at less than reasonable price, only looking after her compensation. She increased volume with no concerns on the effect this might have on production. 4 RecommendationsProduction Bill should consider going to a forecasted production cycle, allowing a better distribution of the work load over the year (reducing overtime from 9. 11 to 8. 47), allowing time to mentor new employees (as attrition rate would be hire), allowing for scheduled maintenance without worrying about capacity during peak production t imes, and dedicate more time to the cleaning of the machinery (there is a substantial drop in cleaning material cost, in this industry this can be associated with a higher maintenance expense, see Exhibit 2b).The quality management effort should be integrated to supports the overall strategy of maintaining a high quality product at BTC. The integration of marketing and production could yield better production schedules to be developed; this integration can be accomplished by establishing shared goals between the two departments. With better production schedules BTC could identify bottlenecks and make sure that those are never starved for work6, reducing overtime demands during peak demand cycles.Overtime Premiums have been rising at an alarming rate (1619% in 1998, 1055% in 1997, see Exhibit 2b); this has very bad consequences on the company’s bottom line7. Production planning should increasing employee morale, allow for proper maintenance of equipment and reduce the risk of breakage during peak production times, and allow for planned training of new employees. In order to offer a higher quality product and impact the reduction of overtime, Bill has to consider upgrading some of the outdated equipment, especially replacing the equipment that reduces overtime and maintenance cost.The company is operating near to capacity; new equipment should alleviate the production bottlenecks and provide the foundation to reduce the overtime labor cost. If Bill is not familiar with new technologies in this industry, he should seek support from consultants in this area. Incentive Plan The incentive model should encourage accurate reporting by encouraging the right behavior, thus discouraging â€Å"low or high balling† while developing budgets (see Exhibit 3). David should be rewarded for finding the least expensive input material, without compromise of quality.Samples of material to be 6 Technology could also be deployed to reduce the bottlenecks, especially the labor-intensive bottlenecks. purchased should be analyzed by Production prior to committing to the shipment and purchase. This can only be accomplished if purchases are based on forecasted production, also allowing David to have more time for the negotiation of better prices for quality raw materials. Rita should continue to be rewarded for selling products, and growing markets. Instead of basing Rita’s bonus on the Static budget, her bonus should be evaluated against the Flexible Budget.In general static budgets are departmental goals that jointly represent corporate goals. Flexible Budgets incorporate some of the present variations in prices, markets, production, costs, etc. that tend to invalidate the Static Budget over time. The incentive plan for BTC should have a mix of departmental goals and division goals, so that there is a better integration among the different departmental goals. Bonuses should reflect management’s favorable performance; therefore, managers should have adequate control over those drivers that affect BTC’s outcomes.BTC should design a Balanced Scorecard as an integrative effort to support efforts of the individual managers of the different department in an orchestrated effort. Balanced Scorecard BTC’s Balance Scorecards should be aligned to support the corporate strategy, both short and long term. Incentives should be assigned to the degree the different measures contribute to the corporate goals. Managers shall respond to incentive, thus supporting corporate goals (see Exhibit 9 for details).A Balanced Scorecard typically includes measures in each of four areas: Financial, Customer, Internal Business Processes, and Learning and Growth8. Some organizations add other dimension to support their strategy, or replace one of the four perspectives with one that uniquely reflects their mission and strategy. In the case of BTC the identified areas are: Corporate (BTC), Marketing, Purchasing, Production, and Manag ement9. The proposed set of Balanced Scorecards for BTC is presented in Exhibit 10. It sounds like the previous manager was a former student of Dr.Page, since the â€Å"two envelop† strategy was employed. First envelope: Blame the predecessor, write loss off. Second envelope: Prepare two envelopes. This case is common in situations with companies that pay bonuses. That's why companies are moving into options. 8 The Balanced Scorecard, Robert S. Kaplan and David P. Norton, Harvard Business School Press, 1996 9 Management as part of the Balanced Scorecards tends to be forgotten. Management (upper) has a responsibility to support the different departments with information on quality, cycle time, and cost. 7 Exhibit 1Berkshire Toy Company A Division of Quality Products Corporation Preliminary Statement of Divisional Operating Income for the Year Ended June 30, 1998 Units Sold Retail and Catalog Internet Wholesale Total Revenue Variable production costs Direct Material Acrylic pil e fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Total Direct Material Direct Labor Variable Overhead Total Variable Production Cost Variable Selling Expense Contribution Margin Fixed Costs Manufacturing Overhead Selling Expenses Admin Expenses Total fixed Costs Operating Income Actual Units 325,556 $ 8,573,285 174,965 $ 4,428,018 105,429 $ 1,445,184 45,162 $ 14,446,487 Master (Static) Budget 280,000 $ 11,662,000 $ $ 1,344,000 $ 13,006,000 Master Budget Variance 45,556 $ (3,088,715) $ 4,428,018 $ 101,184 $ 1,440,487 Unfavorable Favorable Favorable Favorable $ $ $ $ $ $ $ $ $ $ $ $ $ 256,422 125,637 246,002 450,856 16,422 69,488 66,013 1,230,840 3,668,305 1,725,665 6,624,810 1,859,594 5,962,083 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 233,324 106,400 196,000 365,400 14,000 67,200 33,600 1,015,924 2,688,000 1,046,304 4,750,228 1,218,280 7,037,492 661,920 4,463,000 1,124,000 6,248,920 788,572 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3, 098 19,237 50,002 85,456 2,422 2,288 32,413 214,916 980,305 679,361 1,874,582 641,314 (1,075,409) (3,023) 560,192 (261) 556,908 (1,632,317) Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable $ 658,897 $ 5,023,192 $ 1,123,739 $ 6,805,828 $ (843,745) Unfavorable Exhibit 2a Company Growth based on Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 Units Produced 350,000 300,000 250,000 200,000 150,000 100,000 50,000 – Units 1994 1995 1996 1997 1998 Year Exhibit 2b Variable Cost Associated with BTC growthBerkshire Toy Company A Division of Quality Products Corporation Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 1998 1997 1996 1995 1994 325,556 271,971 252,114 227,546 201,763 Units Produced Variable Overhead Payroll Taxes and fringes Overtime Premiums Cleaning Supplies Maintenance Labor Maintenance Suppliers Miscellaneous Total $ 840,963 $ 423,970 $ 4,993 $ 415,224 $ 27,373 $ 13,142 $ 1,725,665 $ 524,846 $ 24,665 $ 6,842 $ 256,883 $ 15,944 $ 11,244 $ 840,424 $ 467,967 $ 2,136 $ 6,119 $ 232,798 $ 12,851 $ 9,921 $ 731,792 $ 413,937 $ 1,874 $ 5,485 $ 244,037 $ 15,917 $ 8,906 $ 690,156 $ 356,150 $ 1,965 $ 4,996 $ 216,142 $ 14,323 $ 7,794 $ 601,370The following table shows the increases in variable cost associated with the production growth. Variable Overhead Growth Payroll Taxes and fringes Overtime Premiums Cleaning Supplies Maintenance Labor Maintenance Suppliers Miscellaneous Units Produced 1998 1997 1996 1995 60% 12% 13% 16% 1619% 1055% 14% -5% -27% 12% 12% 10% 62% 10% -5% 13% 72% 24% -19% 11% 17% 13% 11% 14% 20% 8% 11% 13% Increases in Variable Cost Associated with the Production Growth 1800% 1600% 1400% 1200% 1000% Percent 800% 600% 400% 200% 0% 1994 -200% 1995 1996 Year 1997 1998 1999 Payroll Taxes and fring es Maintenance Suppliers Overtime Premiums Miscellaneous Cleaning Supplies Units Produced Maintenance LaborExhibit 2c Fixed Cost Associated with BTC growth Berkshire Toy Company A Division of Quality Products Corporation Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 Fixed Overhead Utilities Depreciation—machinery Depreciation—building Insurance Property Taxes Supervisory salaries Total 1998 $ 121,417 $ 28,500 $ 88,750 $ 62,976 $ 70,101 $ 287,153 $ 658,897 1997 $ 119,786 $ 28,500 $ 88,750 $ 61,716 $ 70,101 $ 274,538 $ 643,391 1996 $ 117,243 $ 28,500 $ 88,750 $ 57,211 $ 68,243 $ 275,198 $ 635,145 1995 $ 116,554 $ 28,500 $ 88,750 $ 55,544 $ 68,243 $ 269,018 $ 626,609 1994 $ 113,229 $ 28,500 $ 88,750 $ 54,988 $ 66,114 $ 254,469 $ 606,050The following table shows the increases in fixed cost associated with the production growth. Fixed Overhead Growth Utilities Depreciation–machinery Depreciation–building Ins urance Property Taxes Supervisory salaries Units Produced 1998 1% 0% 0% 2% 0% 5% 20% 1997 2% 0% 0% 8% 3% 0% 8% 1996 1% 0% 0% 3% 0% 2% 11% 1995 3% 0% 0% 1% 3% 6% 13% Increases in Fixed Cost Associated with the Production Growth 25% 20% 15% Percent 10% 5% 0% 1994 -5% 1995 1996 1997 1998 1999 Year Utilities Property Taxes Depreciation–machinery Supervisory salaries Depreciation–building Units Produced Insurance Exhibit 3 Incentive Model for Accurate Reporting10 ?b1* forecast + b2 * (actual – forecast) if actual ? forecast Incentive = ? b1* forecast – b3 * (forecast – actual) if actual < forecast b1: rewards are positively related to forecasted sales, give managers and incentive to forecast high b2: sales should be higher than the forecast, b2 affect this component b3: when actual sales are less than the forecast, this plan penalizes the manager For example: b1 b2 b3 5% 3% 7% Actual Sales Forecasted Sales Incentive 1000 1000 50 1100 1000 53 1200 1000 5 6 1000 1100 48 1100 1100 55 1200 1100 58 1000 1200 46 1100 1200 53 1200 1200 60 10 Example from: Managerial Accounting an Introduction to Concepts, Methods, and Uses by Maher Stickney & Weil. Exhibit 4 Total Variable Cost Variance Contributions Variance Cost Contribution Acrylic pile fabric 1% 10-mm acrylic eyes 1% 45-mm plastic joints 2% Polyester fiber filling 3% Woven label 0% Designer box 0% Accessories 1% Direct Labor 39% Variable Overhead 27% Variable Selling Expense 25% Total Variable Cost Variance Contributions Acrylic pile fabric 45-mm plastic joints Woven label Accessories Variable Overhead 10-mm acrylic eyes Polyester fiber filling Designer box Direct Labor Variable Selling Expense Exhibit 5 Analysis of SalesFlexible Flexible Budget Budget (Budgeted Units Sales Volume Mix)(5) Variance $1,897,427 $$218,656 $2,116,083 $13,559,427 276723 $0 $1,562,656 48833 $15,122,083 325556. 1464 Actual Retail and Catalog Internet Wholesale Units Price Master (Static) Budget $11,662,000 $$ 1,344,000 $13,006,000 Budgeted Budgeted Mix in Total Sales Sales Mix Mix PercentagesBudgeted Price Variance Variance 238000 0 42000 280000 85% 0% 15% 100% $49. 00 $42. 00 $32. 00 $46. 45 $(3,088,715) $(4,986,142) $4,428,018 $4,428,018 $ 101,184 $(117,472) $1,440,487 $(675,596) $8,573,285 174,965 $49. 00 $4,428,018 105,429 $42. 00 $1,445,184 45,162 $32. 00 $44. 37 Total Revenue $14,446,487 325556 Exhibit 6a Schedule of Standard Costs: Fifteen-Inch Berkshire Bear Table 2 Standard 280,000 UnitsQuantity Allowed per Unit Direct Material Acrylic pile fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Direct Material per unit Total Direct Material Direct Labor Sewing Stuffing and cutting Assembly Dressing and Packaging Total direct labor 0. 02381 2 5 0. 9 1 1 Input Price $ $ $ $ $ $ 35. 00 0. 19 0. 14 1. 45 0. 05 0. 24 Standard Cost Per Unit $ $ $ $ $ $ $ $ $ 0. 83335 0. 38000 0. 70000 1. 30500 0. 05000 0. 24000 0. 12000 3. 62835 1,0 15,938 0. 50 0. 30 0. 30 0. 10 1. 20 $ 8 $ 9. 60 Variable manufacturing overhead 1. 2 $ 3. 114 $ 3. 7368 Fixed manufacturing overhead 1. 2 $ 1. 970 $ 2. 3640 Exhibit 6b Schedule of Actual Manufacturing Costs for year Ended June 30, 1998 Table 3 Actual 325,556 UnitsQuantity Allowed per Unit Direct Material Acrylic pile fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Total Direct Material Direct Material per unit Direct Labor Sewing Stuffing and cutting Assembly Dressing and Packaging Total direct labor Overtime Premium Other Variable Manufacturing Overhead Fixed manufacturing overhead 7,910 661,248 1,937,023 344,165 328,447 315,854 Input Price $ $ $ $ $ $ 32. 4174 0. 1900 0. 1270 1. 3100 0. 0500 0. 2200 Total Cost $ 256,422 $ 125,637 $ 246,002 $ 450,856 $ 16,422 $ 69,488 $ 66,013 $ 1,230,840 $ 3. 780732 189,211 104,117 121,054 34,615 448,997 103,787 $ $ 8. 1700 4. 0850 $ 3,668,305 $ 423,970 $ 1,301,695 $ 658,897 $ 7,283,707 Exhibit 6c Analysis of CostStatic Budget Direct Material per unit Direct Material per unit Units Total Materials Labor Cost per Unit Total direct labor per unit Labor Hours Hourly Rate Total Labor Cost Variable Manufacturing Overhead Variable Overhead Cost per Hour Labor Hours Variable Manufacturing Overhead Variable Selling Expenses Cost per Unit Units Total Variable Selling Expenses Fixed Manufacturing Overhead Cost per hour of labor Total hours Fixed Manufacturing Overhead $ $ 1. 97000 336,000 661,920 $ $ 1. 46749 448,997 658,897 $ (225,627) $ (222,604) $ (448,231) Price Total $ $ 1. 97 390,667. 20 769,614. 38 $ 225,627 $ (114,910) Volume $ $ $ 4. 35100 280,000 1,218,280 $ $ 5. 71206 325,556 1,859,594 $ (443,100) $ (198,214) $ (641,314) Price Total $ 4. 35 325,556. 00 $ (443,100) $ Volume $ $ $ 3. 11 336,000 1,046,304 $ $ 3. 84 448,997 1,725,665 $ (327,488) $ (351,873) $ (679,361) Price Total $ 3. 11 390,667. 20 $ (327,488) $ (181,639) Volume $ $ $ $ 1. 20000 336,000. 00 8. 00000 2,688,000 $ $ 1. 6980 448,997. 00 8. 17000 4,092,275 $ (980,305) Total $ (76,329) $ (903,976) Price $ $ 1. 20 390,667. 0 8. 00 $ (76,329) $ (466,638) Volume $ $ $ 3. 62835 280,000. 00 1,015,938 $ $ 3. 78073 325,556. 00 1,230,840 (49,625) (165,291) $ (214,916) Price Total $ 3. 63 325,556. 00 $ (49,609) $ Volume $ Actual Variance Type Flexible Budget Price Efficiency Variance Volume Variance $ 1,181,231. 11 $ 3,125,337. 60 $ 1,216,537. 66 $ 1,416,494. 16 Flexible Budget Total Cost per Unit Total Cost Variance Price Variance Volume Variance (670,915. 33) (1,841,957. 90) $ 14. 26335 $ 16. 50162 $ 14. 26335 Flexible Budget Variance $ (1,434,086) Total Price Efficiency Variance $ (670,899. 27) Total Volume Variance $ (763,187. 10) Static Budget Variance $ (2,512,873. 3287) Fixed Costs Actual Static Variance Total Cost Variance Selling Expenses $ $ $ $ 5,023,192 4,463,000 (560,192) (3,072,804) Administrative Expenses $ $ $ 1,123,739 1,124,000 261 TOTAL Budget Cost Variance Budget Sales Va riance Budget Variance Total Cost Variance Flexible $ (1,994,017) $ (675,589) $ (2,669,607) Static $ (3,072,804) $ 1,440,487 $ (1,632,317) $2,669,607 1,632,317 $1,037,290 Variances Volume Variance $ (903,976) $ (466,638) Labor Variance $ (437,338) Labors Hours Exhibit 7 Incentive Plan (better named: â€Å"Let’s all gang against poor old Bill†11) David Hall (Purchasing) Quantity Actual Price Static Budgeted Price Acrylic fabric 7910 $ 32. 42 $ 35. 00 10-mm acrylic eyes 661248 $ 0. 19 $ 0. 19 45-mm plastic joints 1937023 $ 0. 13 $ 0. 14 Polyester fiber filling 344165 $ 1. 31 $ 1. 5 Woven label 328447 $ 0. 05 $ 0. 05 Designer box 315854 $ 0. 22 $ 0. 24 Accessories 325556 $ 0. 20 $ 0. 12 Bonus $ 14,632. 71 20% Rita Smith (Marketing) Revenues Variable Selling Expenses Fixed Selling Expenses Net Revenues Bonus Actual Master Budget $14,446,487. 00 $13,006,000. 00 $ (1,859,594. 00) $ (1,218,280. 00) $ (5,023,192. 00) $ (4,463,000. 00) Delta $ 7,563,701. 00 $ 7,324,720. 00 $ 23 8,981. 00 10% $23,898. 1 Purchasing Variance $ 20,428. 37 $ $ 25,181. 30 $ 48,183. 10 $ $ 6,317. 08 $ (26,946. 28) $ 73,163. 57 Bill Wilford (Manufacturing) Price Variance Volume Variance Static Budget Variance $ (670,915. 33) $ (1,841,957. 90) $(2,512,873. 3) NO BONUS Since negative Static Budget Variance 11 Production processes input into output. Both, the input responsible manager and the output responsible manager, make good money $73K and $24K in 1998, while the production manager makes no money. This situation is ill-fated, or just plain dumb. The â€Å"sandwich effect†, the manager in the middles gets squeezed. This is the sarcasm in management that I am illustrating with this title. Exhibit 8 Overtime Hours 448,997. 00 Direct Overtime 103,787. 00 448,997. 00 Actual Pay Rate Total Hours $ 8. 17 $3,668,305. 49 390,667. 20 $ 4. 09 $ 423,969. 90 45,457. 20 $ 9. 11 $4,092,275. 39 390,667. 20 Flexible Pay Rate Total $ 8. 0 $3,125,337. 60 $ 4. 00 $ 181,828. 80 $ 8. 47 $3,307 ,166. 40 Exhibit 9 Balanced Scorecard12 The actions of management are not static but, rather, are dynamic over time. A round of Strategic performance improvement (usually every year at the time budgets are being developed) may result in an increase in the goals that have been established by the manager and their Balance Scorecard supervisor. (see Figure 1) An analogy may be useful at this point (see Figure 2): just as in high jumping, the goal (bar) is not set at the point at which it will eventually end. It is Performance Measure in set lower, and as the jumping progresses, it is steadily moved higher.As the jumper Management trying to meet Performance clears it at lower heights, the bar is moved up. Each time the assessment (depicted by the black line in the graph) approaches or exceeds the goal (depicted by the gray line), the Figure 1. Balanced Scorecard in action 100 95 90 Performance Metric 85 80 75 70 65 60 55 50 2000 goal is increased until performance is at a level at which further improvements may not be desired. The management group of a corporation will develop plans for the year, those plans are revised through time, incentives are allocated and measures are taken to draw new plans for future years. The Balance Score card allows managers to keep their Goal core and their measures clear, so that decisions are made towards a goal that is congruent with the corporate goal. Outcome measures are results. Driving measures are Assessment incremental in nature, such as the ones depicted in Figure 2. 2004 Year 2005 2006 2007 2008 2001 2002 2003 Figure 2 Progressive Goal Setting 12 Graphs were extracted from Leadership Model based on Performance Measures and Continuous Improvement by Andres A. Calderon Exhibit 10 Balanced Scorecard for BTC Group BTC Scorecard Customer Satisfaction Measures Number of Complaints and number of unsolicited letters Employee satisfaction (involvement, recognition, access to information, support from staff functions, etc. , Staff turnover, Productivity (revenue per employee, return on compensation, profit per employee, etc. ), Number of employees qualified for key jobs relative to anticipated requirement Outcome Performance Initiatives Driver BTC Employee Satisfaction Marketing Attain a high market share in the sale Percent of stuffed animal market share and cost to attain of quality stuffed animal toys a new customer Brand recognition by becoming the synonymous for Teddy Bears (â€Å"brain Percent of people that relate teddy bear to TCB share†) Reduction of selling expenses while increasing number of sales (Last Year Selling Expense – Current Year Selling Expense) / (Last Year Sale – Current Year Sale) Marketing Marketing Marketing Marketing MarketingIntroduction of successful new product Number of new motives or designs introduced per year, variations to the market Time to market, Break even time Introduction of better distribution channel Accurate product pricing based on market Marke t accessibility related to delivery cost Contribution Margin Growth and market understanding by polling customer perception of value for money Marketing Accurate forecasting of sales and Percentage off error related to inventory cost, Percent of peak seasons (to minimize stock-outs key items out of stock, Number of back-orders and inventory cost) Group Scorecard Reduce cost of raw material while maintaining Production quality standards Minimize raw material shortages, so that Production does not have to wait Minimize production cycle timeMeasures Number of times Production rejected raw material, raw material cost compared to price index Percent of key raw material out of stock, Number of backorders Production cycle time Outcome Performance Initiatives Driver Purchasing Purchasing Production Production Production Minimal percentage of manufacturing Service failure index, return rate, warranty claims, number defects of defects Timeliness Percent on-time delivery, total time for custom er interaction (e. g. time of Internet session), average waiting time (e. g. to receive a teddy bear), satisfaction with delivery time Number of processes having adequate information on quality, cycle time, and cost New revenue or savings per database, report, etc. Management Information coverage ratio Management Return on Data