Mexico’s largest cement manufacturer

Cemex, has become a global powerhouse In the cement and construction Industry. It currently controls 60 percent of the cement industry in Mexico (Hill 2009). Cemexs success is a result of a combination of efficient technology such as radio transmitters, satellites, and computer hardware that allow the company to anticipate changes in supply and demand and reduce waste. Cemex's success is also a result of an attempt to dominate the industry by acquiring and buying out competitors worldwide In order to expand. . Which heoretical explanation, or explanations, of FDI best explains Cemex's FDI? I believe that Internalization theory best explains Cemex's FDI because Cemex has taken the initiative to enter into many countries and instead of licensing; they bought domestic cement businesses and have grown into a worldwide powerhouse. According to the textbook, internalization theory explains why firms often prefer foreign direct investment over licensing as a strategy for entering foreign ma rkets (Hill 2009).With the advanced technology that Cemex uses, so licensing would not be the greatest venue for the company to take In order to protect It's â€Å"technological know-how' (Hill 2009). b. What Is the value that Cemex brings to the host economy? Can you see any potential drawbacks of inward investment by Cemex in an economy? Cemex is the third largest cement company in the world, and a powerhouse in Mexico where it controls 60 percent of the market. Cemex is highly focused on efficient manufacturing and customer service. Distributors are rewarded for their sales, as are users.The primary benefit Cemex brings to host countries Involves these competltlve advantages. Cemex acquires companies and then transfers technological, management, and marketing know-how to the new units. Improving their performance. The company has brought several acquired companies back to full production, increasing employment opportunities in the host country as well. c. Cemex has a strong pref erence for acquisitions over greenfield ventures as an entry mode. Why? Cemex has successfully acquired established cement makers in many countries.By acquiring companies rather than establishing them from the ground up, Cemex can avoid some of the delays that could occur in the start-up phase, while t the same time, capitalize on the benefits of an established market presence. Acquiring other businesses is effective because the host economy already knows the demographics and the market. Cemex would be able to make the business better with their technology and research. A Greenfield venture would be risky and not cost effective. d. Why is majority control so important to Cemex?Majority control is important to Cemex because of the ability to Implement its policy of transferring resources. When It does not have majority control It may not be able to transfer its own managing resources to newly acquired companies. Also, Cemex ight want to take advantage of differences in factor costs a cross countries, so it will be allowed to import parts from other places to reduce costs. References Hill, C. W. L. , Richardson, T. , ; McKaig, T. (2009). Global business today. Toronto: McGraw-Hill Ryerson.BUSN 427 WEEK 3 Case study By Jihadmalley Mexico's largest cement manufacturer, Cemex, has become a global powerhouse in the cement and construction industry. It currently controls 60 percent of the cement industry in Mexico (Hill 2009). Cemex's success is a result of a combination of acquiring and buying out competitors worldwide in order to expand. a. Which hat internalization theory best explains Cemex's FDI because Cemex has taken the avenue for the company to take in order to protect it's â€Å"technological know-how' (Hill 2009). . What is the value that Cemex brings to the host economy? Can you see any are users. The primary benefit Cemex brings to host countries involves these competitive advantages. Cemex acquires companies and then transfers technological, management, and marketing know-how to the new units, improving Majority control is important to Cemex because of the ability to implement its policy of transferring resources. When it does not have majority control it may not be able

Cultures: Theoretical Models

Cultures: Theoretical Models Walden University Cross-Cultural psychology examines human activities in various cultural settings, by engaging several approaches. Some of these approaches were self evident from the course video dealing with the Thailand women cultural wear of brass neck shackles. Evolutionary Perspective The culture of wearing brass neck shackles by the Thailand women is described by the relative evolutionary factors affecting human behavior. Charles Darwin’s theory of evolution by natural selection postulates that organism evolve with the pursuit of the biological traits that will promote longevity and survival. Such traits—aggressiveness, initiative, curiosity, obedience, intelligence, etc. , are so selected to reproduce offspring that will permeate and advance same competitive, advantageous genes to unending generations. These desired or preferred genetic—biological inheritance, elicited or interpreted in the form of beauty, reproductive behavior, proportional body size, bodily hormones, etc. form the bases for the cultural persuasion, (Shiraev & Levy, 2010). The sexes utilize these endowments as a measure of selection or discrimination for or against opposite sexes. Applicably, in the case of the Thailand women, the evolutionary perspective will continue to maintain and uphold this culture of elongating the neck by wearing the brass-neck shackles, because the culture promotes the selection of mates with long neck as a desired gene and shows altruism in a woman; the women, on the other hand, display the feature of a long neck as an attraction for the right mate. By right mate, the woman, who, by nature, longs for stability and security, targets material support in a partner. Sociological Approach Sociological Approach is a â€Å"general view of human behavior that focuses on broad social structures that influence society as a whole, and subsequently its individuals;† (Shiraev & Levy, 2010). Society as an entity creates social structures that are purposefully designed to assure its stability and conformity among its citizens. By creating these social norms, the society then imposes acceptance and subordination on the people. By default, the citizens of the society are nurtured and naturalized by the prescribed ethics and values. Consequently, these cultural norms and values are upheld in high esteem as a regulator of its citizen ideals, moral behaviors, ethics and expectations. Resultantly, the citizens pass on these cultural values or traditions from generation to generation, (Shiraev & Levy, 2010). Upon the above premises, the traditional Thailand custom—women wear of neck shackles to elongate the neck, reinforces the societal expectations by subjectively promoting the act as a required and desirable form of beauty; the transference of the norm to posterity. Ecocultural Approach Using the ecocultural approach, explain how the woman’s interaction with the environment supports the actions she takes. The above approach coincides with the principle that entities are the product of their environment. In essence, individuals interact with the domain environmental factors; have the ability to transform it and to be transformed by it. These environmental factors relate to ecological context—the economic activity of the population in reference to austerity of food, quality of nutrition, homeostasis, as well as, the density of the population. All these exert a considerable impact on individual. Another factor is the sociopolitical context—relates to the degree of the people’s involvement in both global and local decisions. Inclusive in this context are the presence or absence of political freedoms, ideological values and organization of government, (Shiraev & Levy, 2010). Thus, economically hostile environment creates cross-cultural differences, hence, the less privileged will be concerned or consumed with fending for daily scour; as a result, retain a culture of their own environment. As well, in politically unstable environments, long term customs are affected adversely. In the case of the action of the woman in the video, fleeing her country of origin to Thailand, to preserve her custom of wearing brass neck shackles intended to stretch the neck, was prompted by political instability and hostile environment, when in 1962, the Military Government decided to modernize the society and get rid of all primitive and tribal customs. All three approaches of examining human activities in human cultural settings—evolutionary, sociological and ecocultural approaches share similarities, among which are: They human organisms in a given setting maintain a defining culture or custom that governs their ways of life. These customs uphold their value system and detect their moral and ethical behaviors. Secondly, all three approaches show that these traditions, customs or culture are die-hard; and they are passed on from generation to generation. Nonetheless, certain differences exist among them. Firstly, while evolutionary approach observes culture or custom development from a natural selective—biological, principle and its outcome or foundation remains solid, the sociological approach deals with the development of culture through the impart of large social groups or institutions. The customs from the preceding setup are prone to undergo changes or reformations that produce societal disorder, economic disenfranchisement and dual-social order. Evidently, every society is regulated by one form of culture or the other. Such culture can be denoted with modernization, traditional or both. The clearer understanding of the custom of wearing brass neck shackles—for neck elongation, as shown on the video, was provided evolutionary approach. This is because of theory of natural selection; in which a desired trait is preserved and showcased. Such that, in the case of the Thailand women, the custom is the means of being selected by and attracted to the well-off men for economic security. Reference: Shiraev, E. , & Levy, D. (2010). Cross-cultural psychology: Critical thinking and contemporary applications (4th ed. ). Boston: Allyn and Bacon, Pearson Education, Inc.

House (Tv Series) Essay Example | Topics and Well Written Essays - 750 words

House (Tv Series) - Essay Example According to the research "House (Tv series)" findings, â€Å"House† is a medical TV series that does not just give a glimpse of the daily activities of doctors in the hospital but also gives a lot of information about diseases. It is an interesting material that can be used by medical students because the series can really serve as strong motivations to know the facts and not just rely on what is seen on TV. Of course, for the laypeople who view the episodes, they will definitely be in awe of the stories but when one really digs deeper into the diseases presented, mistakes will be discovered and this will serve as a material that encourages research or the like. In addition, the stories also delve into the personal lives of the characters involved. The series perhaps tries to show how normally doctors live and not idolize them thinking only of the prestige and salary they enjoy. Behind the wonderful image, people see doctors being, there are so many difficulties that they als o struggle with. They have their relationship problems to deal with but they try as much as they can to serve in the hospital in the most professional way. Moreover, there were times that the doctors were emotionally affected by the death of their patients. One example of which is the story of a patient in season 6 episode 21, who was trapped in an accident area and has to have her leg amputated so she can be moved out of the debris. Unfortunately, the patient dies from a fat embolism. This affected Dr. House so much that he turned to his drug addiction.

Custom Marketing Plan Coursework Example | Topics and Well Written Essays - 2250 words

Custom Marketing Plan - Coursework Example The company will target the market segments and is quite hopeful that sales growth will be observed. The individualistic culture in the USA (or absence of extended/joint family system) has increased the total number of households. Indeed, over 80% of the US population lives in urban areas where life is fast and people require small electronic appliances, which are categorized under necessities. Hence, the demand for electronic appliances is extremely higher because of better purchasing power of people in urban areas (indexmundi.com). For instance, Median household income in the USA is above $76,000 per annum; hence this shows the ability of consumers to buy appliances. In addition, people in the USA have an inclination towards products that ease their life thus huge demand for environment-friendly electronic appliances exists in USA (srds.com). 1) To produce and offer want-satisfying top quality electronic appliances to our potential consumers and to focus on value addition for segments with higher purchasing power. The sales would be increased by 200% in the first 3 years. 3) To ensure that our customers receive ‘Utility of Place’ and ‘Utility of Time’ through the effective supply chain and transportation networks. Special attention will be paid to avoid any artificial and unnecessary shortages in the market to maintain consumer confidence. 4) To enter the market with aggressive marketing and advertising strategies through the use of informative and persuasive advertising tactics. Electronic, Print, Radio and Internet Media will be used for promotion. Sales discounts will also be offered to entice potential wholesalers, retailers, and end-users.

Recommendation Report Essay Example | Topics and Well Written Essays - 1000 words

Recommendation Report - Essay Example The two investors sued Bright Light for failure to honor their contract and fraudulently obtaining money from them. With evidence and witnesses having presented and appeared before the duly, the court ordered that I should conduct a thorough investigation and auditing of Bright Light company. In interviewed Thomas and Pius Longman, the CEO of Bright light. During my investigations, I found out that Bright Light had actually used Thomas in several occasions in order to manipulate its records in order to please investors. I recommend that Bright Light directed to refund the money they owe the plaintiffs. Additionally all their dividends must be paid in full in reference to the contract. On the other hand, Thomas should be subjected to the full force of the law. In addition, he should be barred from participating into any form of transactions by any of the auditing firm for the next three years. Key words: fraud, Bright Light consultant firm, manipulation of company’s records, pl ease investors. Introduction Mr. Mark Thomas was an accountant at Bright Light consultant firm. Several allegations were raised in regard to allegations of fraud by the company. In essence, in the bid by the company to develop and maintain competitive advantage, it resulted into venturing into fabricating fake accounting documents in order to attract more shareholders. In 2012, Mr. Thomas was in charge of the accounting department. ... This dubious act was intended to build confidence of potential investors in Bright Light performance. Consequently, many people invested in the company with expectations that they would get good returns in regard to the good performance record portrayed by the company. Nevertheless, this act of fraud by Bright Light would not last for long before the scandal was revealed by some investors after the company failed to honor its agreement with the investors in relation to payments of dividends due by the end of their first year they entered into a contract with the company. As a result of these deliberations, two investors sued Bright Light for failure to honor their contract and fraudulently obtaining money from them. With evidence and witnesses having presented and appeared before the duly, the court ordered that I should conduct a thorough investigation and auditing of Bright Light company. Specifically, the court wanted me to find answers to the following questions: 1. Did Thomas en gage in manipulating records? 2. If yes, why did he do that? 3. Was the company CEO aware of these accounts? 4. What is the best way to deal with such incidences if proved to be there? Results With such accounts, it is evident that Bright Light had ventured into dangerous business that put Thomas into controversy especially when it came to having a dilemma on whether he would keep the secret in order to retain his job or on the other hand, to tell the truth in order to save hundreds of investors who had invested in Bright Light. Studies have indicated that, in the accounting sector, it is crucial for persons in this profession to exercise the highest level of honesty and accountability when discharging their mandates (Hoffman, 1996;

PUBLIC OPINION OF THE SEPTEMBER 11 EVENT Research Paper

PUBLIC OPINION OF THE SEPTEMBER 11 EVENT - Research Paper Example They vary from large, official polls such as those done by Zogby, to smaller, casual polls of partial range, and unscientific internet polls. The issues here relate particularly to uncertainties about the conventional account, and in all incidences were part of a set of questions dealing with wider matters, typically of a political nature (Zogby Poll, 2004-2006). September 11 remains, above all a massive human disaster. However, September 11 also posed a significant and premeditated confront not just to America but to the globe at large. The aim of the terrorists was not just Washington and New York but the very morals of freedom, acceptance and civility which strengthen people’s way of life. Ever since the September 11 hits, fears have been raised concerning the conventional account of measures. There have been a number of conspiracy theories signifying that affiliates of the U.S government may have intentionally covered-up and erroneous events, in order to bury negligence or even involvement. The first Zogby opinion poll was done in August 2004, on the day of a Republican National gathering, on 808 arbitrarily chosen inhabitants of New York State. It established that 49 percent of its inhabitants and 41 percent of its people trust individuals inside the US government (Zogby Poll, 2004-2006). The second main Zogby poll on 9/11 was done in May 2006. It was a phone interview or interrogation of 1,200 arbitrarily chosen adults from all over the United States, comprising of 81 queries, with a 2.9 percent scope of inaccuracy. One of the questions is: "The World Trade Center construction 7 skyscraper that was not attacked by any planes for the period of the September 11th hits, but still absolutely collapsed later on the same day. This subside was not probed by the 9/11 Commission. Are you conscious of this skyscrapers collapse or rather subside, and if so do you consider that the Commission

Criminal Essay Example | Topics and Well Written Essays - 250 words

Criminal - Essay Example des services to unincorporated county area, contractual police services in districts, providing full security to county facilities and national parks. Similarly, county police have to provide some road patrol duties and provide municipal police support. Their training is equipped to ensure they have the best qualities in providing county security. They are rated amongst the low ranked in regard to payments. The second law enforcers are state police. The state police are mandated as a statewide government agency deemed to provide law enforcement in the state. They are regarded to provide the best services in line with investigations and state patrols. They are widely use in the state in different positions, including game wardens, conservation officers, campus police, capitol police and state hospitals (Dempsey &Forst, 2011). Their training is widely complex as it includes serving the state in different capacities. Their remuneration package is better than that of the county police as they have a wider jurisdiction in the country. There have a consideration of moving from one state to another since they have a wider training. The third arm of the law enforcement is the federal police. The federal police are mandated to ensure the country is in solidly secure state. According to the United States Code, the federal police have full federal authority to authorize and enforce the law at various federal levels. The federal police are trained in vast areas of ensuring they have the best training in their course of their duty. There are many points to note from the federal police as they have different training for different working positions (Dempsey & Forst, 2011). For instance, they have the Federal Bureau of Investigations, Drug Enforcement Administration, federal Bureau of Prisons and The United States Marshals Service. They are considered to be the highly rated police officers in the country as they have a higher job commitment in the

Classical and Operant Conditioning Essay Example | Topics and Well Written Essays - 750 words - 3

Classical and Operant Conditioning - Essay Example The following morning, they once again decide to get their exercise (UR) by walking (US) the same route of the past two days, only this time they enter the gymnasium to look around and make some queries. The fourth morning, they once again decide to walk (US) down Leon Avenue; and as was the case yesterday, they enter the gymnasium. This time, however, they become members (CR) having decided to use this facility for their exercising. The next morning and many mornings thereafter, the gymnasium (CS) is the place they go for their exercise (CR). This student has also chosen an activity for operant conditioning; namely, studying. A psychology professor has a double period every Friday. On some of those Fridays, the professor will, at the beginning of the second period, ask the students to study (desired behavior) the material from the first period, telling them they are free to ask him questions about the material that they did not understand. Some students do as asked, while others do not. Then, approximately 15 minutes before the end of study period a quiz is given. Those who studied, invariably obtain a good mark on the quiz, which serves as a positive reinforcement for their studying behavior. As students who studied keep receiving good quiz grades (positive reinforcement), it strengthens the desired response (studying) and increases the chance that it will keep on happening (Morris, 1976). Social and cultural environments actually act as powerful classical and operant conditioners. The class is one cultural indicator (Benchmarks on Line). If a person is born into a class (e.g. upper middle class) where diligent studying and resulting good grades are highly valued, a student will be praised and often also rewarded with tangible items such as a bicycle, camp, a skiing holidays, and so forth.

Human Growth and development Essay Example | Topics and Well Written Essays - 250 words - 2

Human Growth and development - Essay Example Psychiatric evaluation of the parents of the infant should also be undertaken. History of behavioral problems such as delinquent behaviors, criminal cases, and substance abuse should also be checked in the family history since it had been determined that problematic behaviors are partly genetic. Determination of possible learning disabilities is also important to be able to be prepared for the time when the child needs to start education. There are other aspects that should be considered in adopting an infant such legal and social aspects. But the health and developmental factors related to the infant itself should be the primary consideration. In adoption of an infant, the adopting parents should have the proper attitude and preparedness. They should consider all the factors related to the health and capacity of the child. If they decide to overlook perceptible problems related to the health and behavior, based on family history, the future parents should be ready for possible conse quences since adoption is a lifetime decision.

Case Study Essay Example | Topics and Well Written Essays - 1000 words - 3

Case Study - Essay Example For the general information from the Head Office a mail feedback form should be available on the system of the employee. Since the employees are not functioning from offices Instant Messages through virtual messengers can’t be used because simultaneous online presence of employees is impossible. The Daily Correspondence can be effectively handled through emails and single text message can be used to convey information to all the employees instantaneously. In case of inter personal communication with a personalised message on the mobile phone, to check email can help. Alternately, all employees can be asked to activate mobile phone message flash for every email received with help Internet service provider and mobile phone operating company. Another effective way to coordinate communication will be by asking all employees to check their emails at least thrice a day. This will ensure deliverance of routine correspondence and messages. Another alternate way is to flash a message o n the telephone asking the employees to check their emails for time sensitive information. Telephonic conversation should be used to convey bad news messages. The employee delivering the message can add a sobering influence in such a case. In case of some bad news or emergency messages, that relates to all the employees, email should be used and a simultaneous message to check emails can be delivered on the cell phones. ii) When most of the staff are telecommuters and operate largely from virtual offices, the cheapest, the fastest method, the most reliable and foolproof method of communication is through online Instant Messaging. The messenger of any commercial operator like AOL, Yahoo, or Google can be used. Alternately, a small and a specific web application can be developed that is installed on the telecommuter’s computer system. The moment, the computer is switched on, the telecommuter goes online. A buddy list on everybody’s messenger can be

Leadership Styles and Their Effect on CEOs Essay Example for Free

Leadership Styles and Their Effect on CEOs Essay Abstract The purpose of this essay is to analyze, compare, and contrast the leadership styles of two influential CEOs. I have collected information from many internet sources that elaborate on the life, achievements, and misfortunes of Jack Welch and Steve Jobs, and how they overcame their obstacles to become the best CEOs of all time. Leadership Styles and Their Effect on CEOs Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive. Jack Welch and Steve Jobs exemplify the true meaning of what a leader is. Their personality traits of being conscientious open to experiences, extroversion, persistent, and passionate has led them to be the most phenomenal visionary leaders of their time. Jack Welch was the chairman and CEO of General Electric between 1981 and 2001. During his duration at GE, he managed to introduce a fresh and innovative leadership style. Welch developed a ranking system that put employees in one of three categories. The top 20 percent were â€Å"stars†, the middle 70 percent were the crucial majority, and the bottom 10 percent were weeded out (Bloomberg, 1998). I admire and strongly agree with Welch’s management approach of making employee’s accountable. If you are hired to perform a job, then expecting results of a certain quality is justified. In addition, I believe that Welch’s passion for productivity and results allowed him to achieve effective performance management within his company. Results create success, and I believe most people tend not to raise their standards high enough if there are not serious repercussions that follow, such as being dismissed for not providing results. Welch most notable achievement was increasing the market value of the General Electric firm. As CEO he increased it from approximately $12 billion when he took over, to a colossal $505 at the time of his retirement (Management, 2012). He managed to make GE the world’s second largest company with a market capitalization that was only exceeded by Microsoft. Through hard work and perseverance Welch managed to attain legendary status of being one of the greatest CEOs of all time. Leadership Styles and Their Effect on CEOs Steve Jobs was an entrepreneur, co-founder, chairman, and CEO of Apple Inc. As the CEO of the company, Jobs covered the development of the iMac, iPod, iPhone, and iPad, and on the services side the company’s Apple Retail Stores, iTunes store, and the App store. The success of these products under Jobs provided stable years of financial return, and propelled Apple to become the world’s most valuable publically traded company. The reinvigoration of the company is regarded by commentators as one of the greatest turnarounds in business history (Gallo, 2011). Jobs was a â€Å"one-in-a-billion† innovator with a bulldog mentality. He created a vision and relentlessly drove it into completion. Jobs was a demanding perfectionist who always aspired to position his business and products at the forefront of the technology industry by understanding and setting trends with innovation and style. His reputation was built on being a brutal force and often destroyed staff for their â€Å"bozo† ideas and typically shrugged off his associates suggestions in favor of his own gut instinct. Moreover, he only wanted what he called â€Å"A-players†. Meaning that they had to be brilliant and he insisted that under the threat of being fired, that they would never reveal any of Apple’s secrets inside or outside of the organization (Juarez, 2011). In summary, both Welch and Jobs are extraordinary leaders who demonstrate charismatic and transformational leadership styles. They both have very similar qualities in wanting to produce results. However, they differ because Welch’s management style was cut throat in the sense of firing employees who did not perform. Yet, he was still open to the ideas of managers and employees, and empowered them. On the other hand, Jobs leadership style is regarded as unconventional and being a dictator, who only listens to his own intuition. References Bloomberg, L,P. (6/28/2012). How Jack Welch Runs GE. Business Week. Retrieved November 20, 2012, from http://www.businessweek.com/1998/23/b3581001.htm Gallo, F. (3/17/2012). What Kind of Leader Was Steve Jobs? Calypso Consulting. Retrieved November 20, 2012, from http://www.chinacalypso.com/content/what-kind-leader-was-steve-jobs Juarez, A. (10/5/2011). A Different Kind of Leader. Studying Systems for a Humane and Sustainable World. Retrieved November 20, 2012, from http://saybrook.typepad.com/complexity/2011/10/a-different-kind-of-leader-steve-jobs-1955-2011.html Management Strategies From A Top CEO. (4/16/2010). Retrieved November 20, 2012, from http://www.investopedia.com/articles/financial-theory/10/manage-business-like-jack-welch.asp#axzz2CpmsLsRK

Key Messages To Communicate With Targeted Segment Marketing Essay

Key Messages To Communicate With Targeted Segment Marketing Essay Introduction: In the modern society, fashion had always been considered as an important aspect in daily life. According to the Fashion arts (2010), there is an increasing in number of intensive competition between fashion retailers for their shares of the consumer market. In another word, it is a battle to gain the customers attention and the customers loyalty. Therefore, I am now writing this report in order to support our companys strategy to promote our new range of clothes. This report will provide a draft communication plan with a logo and a strapline along with recommendations for our KMstyle store in order to enhance our brand, communicate with public. What is a communication plan? Communication plan is a document written in order to accomplish our association communications. It will help to define the audiences needed to communicate with, show the way to accomplish our objectives, which method or tools can be used and how you will evaluate the results of the program. Communication consist of writing, oral, electronic interact with certain type of audiences. A communication plan usually aiming for what is our main objective, goal, who is the audience needed to be approached, key messages, tactic, how we can contact them, in which method, using which tools, where to get the information (Robin Mayhall) Overview and define our main objective KMstyle is one of the fashion leading retailers over 20 years in the fashion industry. The company operates a supply chain network with over 100 stores in the UK and continuous expanding. Kmstyle provides an extensive range of womans fashion products include clothing, accessories. We are now launching a new range of trendy fashion clothes designed by top supermodel Kate Moss. Our goal is to create and maintain a favourable public image by communication to the general public, attract new customers, promote our brand and stay up to date compete with other retailers. Define our target audience It is vital to identify who our target audience are; they are critically influence on the communicators decision about what to say, how, when, where and to whom. Kmstyle new launching products are focusing on young and trendy segment. Question such as: Is the target new to the category or a current used? Is the target loyal to the brand? Target is loyal to competitor or someone who switches between brands? If a brand user, is he or she a frequently shopper or notshould be considered as the answer will effect communication strategy (Kotler P, Brady M, Goodman M Hansen T 2009, p 696). All we need is information which can be obtained internally from our staffs, marketing department, HR department ect as well as externally from customers and even from our competitors. Key messages to communicate with targeted segment This is where we need to question ourselves: WHO, WHAT, WHEN, WHY AND HOW of communications: WHO will introduce the new range of clothes, brand or event? WHAT is our company new offering? What are those new features or benefits? WHEN these offering will be available? When the promotion will be launched? WHERE will the events, promotion, offer will take place? WHY should the targeted audience be interested in our range of products? HOW can our audience get more information on the offering/promotion/products? These messages should be cleared, written in language that the target audiences can understand and relate to. (Fine ArtsFund) Identify communication methods This is one of the most important steps in a communication plan as how KMstyle plans to communicate with the segmented audiences? Which key messages should be used each time we communicate? And how we can make sure our audiences receive the information, hence we can draw out new ways to reach them (Fine ArtsFund) Failure in communication will cause negative effects to our companys image in the future, therefore choosing the correct method, using appropriate mediums, deliver the right messages at the right time are essential. Communication mix Media Most conventional communication tool is advertising. The main purpose of advertising is introducing and reminding the public about our companys existent in another word creating brand awareness. Advertising KMstyles aim is to inform, persuade the public, remind and reinforce information about the brand. It is a non-personal sale presentation which influences a large number of audiences (Kotler P, Brady M, Goodman M Hansen T 2009, p 72). Advertising can be general classified as newspaper, magazines, radio, television, internet, websites email, direct mail, outdoor ads, transportation ads, email and phone call which are various methods to connect people (Jeff Madura 2007, p529) Advertising advantages are: Make good impression on the reader by suggesting a professional approach which improves the changes of its message being accepted The content or information is easier to understand Add impact and interest Messages will be delivered to a large number of audiences Exposure is unlimited to your ad as people can come back to see the ad anytime. Newspaper and magazines are low cost budget, they are distributed nationwide and more focused Radio has its advantage as it talk to the audience even thought it lacks of visual effect. Television ads become more common nowadays, research had shown approximately more than 40 million women are watching the annual Academy Awards, many fashion firms and lipstick focus may their ads on this program however advertise on a popular show will be very expensive for example a one minute ad during the Super Bowl cost more than $3 million (Jeff Madura 2007, p531). Choosing internet as a communication medium is a must. It is necessary to have a proper website designed which includes all the information about the new range of clothes, together with promotions, vouchers Direct mail advertising: is also used by sending catalogs directly to homes, for example the cosmetic firms Avon advertised their products by direct mail method. Outdoor ads: are shown on billboards and signs can also be considered as they attract customers attention quickly. Transportation ads: print advertisements such as poster, leaflets, slogan, logo are often displayed on busses, cabs, taxi as they have a strong visual effect and easily recognized at one glance (Jeff Madura 2007, p533) Product placement: is where the product is advertised through the star, movie, show as the majority of public are getting tired of normal advertisement. Product placement become the latest trend and widely used as they are quite costly to launch but mostly bring out an effective results. For example: by showing many of the clothes on the hit show Gossip Girl had made a massive impact on young designer and Project Runway alumna Alexandra Vidal, as fans often eager to own and to wear the same clothes as their favourite star (Trend Hunters) Conduct survey, questionnaires: enable public to acknowledge our brand also we will be able to get their email and contact information once they register through our websites. After that, we can send out information about our brand, sending out news, survey, and questionnaire through internet. Sending out survey is an easy way to find out what people need and want, whether they satisfy with our service, this method is commonly used in every organisation nowadays. Its characteristics are : Useful in describing the characteristics of a large population which none other method has this capability. Can be controlled and dealing remotely through email, telephone, mail which show the results in statistical way. With a high flexibility, many question can be asked in a survey, to complete usually need 5 30 minutes. Had a high reliable rate, easy to obtain and low cost. Survey can be shortening to questionnaire form, which can be used on focus group, face to face interview. However the percentage of replying results is relatively lower than the other method also they were designed under a general questions, possibly missing what is most information needed to get (CSU) Personal selling involves individual sale-person conducts: personal selling Face to face, one on one basis which sale-person got paid by commission. This method can be alternative such an interview face to face with customer to get more information from them or Focus group: invite 3- 10 customers to form a group with prepared questions about KMstyles fashion product range in order to retrieve specific information such as: thoughts, feeling, attitudes or ideas about the company from customers. Sale promoting: produce a high sales response in the short run (Kotler P, Brady M, Goodman M Hansen T, 2009) Coupon: are attached in newspaper, magazines and ads to encourage the purchase for a product consequence increase customers loyalty to the brand Vouchers: discount 10-50% off or buy 3 for 2 prices Premiums: giving out gifts or prize for customer who purchase over  £100 for example. This method gives an extra incentive to purchase products. (Jeff Madura 2007, p533) Public relations: create and maintain a favourable public image is crucial. It has a big impact on KMstyles reputation. Special events: some firm sponsor a special event such as car racing, sports, and football for example: Nike promoting their brand logo printed on runner shirt or shoes. On the other hand, in fashion industry event such as fashion shows week enable the viewing of fashion latest style, this is a place called social gathering and get interact with other brands as well as reporters, media. News releases: a brief announcement of a firm in written form provide to the media with headlines which enables the firm to update the public about its products or operations, also to clarify false rumours that could adversely affect the firms reputation. Press conference is similar to the new release but instead of written from it is an oral announcement. It is more specify and more personal as news are released directly to the media. (Jeff Madura 2007, p533-543) Recommendation key to success General speaking, to be effective, communication to the audience has to Be targeted carefully to suit each section Must be an on-going, consistent and frequent process. The information available must be reliable and up-to-date, in order to multi level and promotional to draw attention toward our company (WARP, 2004). KMstyles webpage should have easy contents yet professional layout. Information that is published on the site should be cleared for the audience by using email hyperlinks, newsletters and other media. There should be links to customer service, clothes range with pictures and prices, size guide, info personal shopping is highly recommended as many people do their shopping online or some orders are global. Below is an illustration of a fashion retailer website names RiverIsland:Untitled Creating blogs, groups, registering with some popular websites such www.facebook.com, www.twitter.com, yahoo, MSN where a large amount our target audience are connected. Create a link to our main KMstyles website to get the public subscribed. Recommend fashion popular fashion websites with large community networks: fashionising.com, stylehive.com, keboodle.com, thisnext.com, stylefeeder.com, shareyourlook.com consist of difference styles and fashions which will help KMstyle improve and gather information (Chris Odel) Through internet, we can get customers email which will help us to contact them, sending them information, surveys about our new range, new promotions or vouchers and collect their information. Conducting survey I recommend the website: https://www.questionpro.com , it will help to design survey questions for free. Once you register for an account, you will be able to access to the website, from creating every single question to a complete a professional survey and sending it to emails directly from your account. Below is a demonstration of a survey created from questionpro website: dd Meeting up with a marketing officer or hr, accounting department or even any staff who work for KMstyle in order to collect more information about our customers, also statically know about KMstyle range of products. For example: booking an appointment with Mr X a sale manager operation, he has the recording of stock room, he will eventually be able to give out the figure of which products are best selling and which are not ect(River Island) Advertising is highly recommended as a key of branding awareness, KMstyle advantages are having our products designed by top supermodel KateMoss. It will be effective and efficient to use her image to boost up KMstyle using fashion product placement method. According to Tungate Mark When a celebrity wears something, it has direct impact on sales, April Glasssborow, senior buyer for international designer collections at Harvery Nichols recalled when Victoria Beckham was photographed in a green satin Chloe dress by the Sunday Times Style section, it created a demand. Focus on advertising on fashion magazines type such as : Cosmos, Glamour, Vougue, Elle Recruiting sale staff for improving personal selling, staff will approach customers with questionnaires given and leaflet to handout over public A few samples of question can be: Do you like shopping? How often do you shop? Which brand is your favourite? What style of clothes do you consider best suit you? What do you think about our KMstyle Brand? What type of clothes you usually shop in KMstyle? Have you ever shop form our online store? Did you receive offers or discount from us? In the consequence we will be able to collect more data from these answers. Developing poster upon Kate Mosss style or poster display in front of the store. For example : FashionShowLogoNewLowRes.gif katemoss1.jpg New range of products Feel of the temptation km_logo.jpg Image source: http://magsandfashion.files.wordpress.com/2009/08/katemoss1.jpg http://www.berninausablog.com/files/FashionShowLogoNewLowRes.gif http://www.katemarston.co.uk/images/km_logo.jpg Additionally, billboard with high quality of printing which visible through the day can be placed on Piccadilly Circus or airport Press conferences or new releases rely on Kate Mosss image. Recommended on: the Times, the Guardian, the Independent, the Daily Telegraph An example of successful promotion: Victorias Secret relies on models to do promotional tours in which they promote Victoria Secret products (Jeff Madura, 2007) Launch or attend the fashion shows e.g. the London Fashion week to boost up KMstyles image and create positive public relation. Here are some keys step needed to be consider before running a fashion shows: Decide the purpose of the fashion show make a list of what are our objective for the shows put up fliers, ads, poster, leaflet in order to spread news about the shows book a location in advance with an estimate amount of audiences Have meetings with models: Kate Moss advertise the show dont be too stress and have fun, enjoy the show! (Kate Russell) Below is a sample of an advertisement on fashion show Image Source: http://fc04.deviantart.net/fs24/f/2007/355/0/7/Fashion_Show_Poster_by_lightskinnnn38.jpg Fashion_Show_Poster_by_lightskinnnn38.jpg Main keys to success: Draw out a timetable and bulletin all the key points: date and time, things to do, meeting need to attend, person need to contact, how frequent, and staff involved Enable customers to access and contact our organisation, looking out for feedback in an effective way Keep contact, stay on track and inform customer about information from our company also connect with internal departments. Efficiently using communication method to promote our company range of product and improve our appearance Considering having or attending press conference, fashion shows keeping data up-to-date, renewing our material in order to attract more customers. Recruiting more staff specialise in marketing area and sale staff. Conclusion: In the fashion industry, it is vital to understand how communication is the key of information and taking a consideration to be able to communicate is necessary. Generally speaking, this report overall present a draft communication plan along with my communication support recommendations in order to help KMstyle promote the new range of clothes to the targeted segment. Together with the disadvantages, advantages of each methods and how to ensure a success results in communication process.. If there is any further enquiry regarding these; please do not hesitate to contact me via my email. (2687 words) References and sources Books: Kotler. P. Brady, M. Goodman, M Hansen, T (2009). Marketing Management, Pearson Education Limited, England, Essex, chapter 19, designing and managing marketing communications, p 696 Kotler. P. Brady, M. Goodman, M Hansen, T (2009). Marketing Management, Pearson Education Limited, England, Essex, chapter 20, managing mass and personal communications, p 722 Madura, J (2007), Introduction to business, 4edn, Thomson south western, advertising, p529. Madura, J (2007), Introduction to business, 4edn, Thomson south western, advertising, p531. Madura, J (2007), Introduction to business, 4edn, Thomson south western, advertising, p533-543. Electronic/online source: University of arts (2010), Introduction to fashion retailing, [Online]. Available from: http://www.fashion.arts.ac.uk/shortcourses/shortcourses_Introduction_to_fashion_retailing.htm [Accessed 05 Feb 2010] Robin Mayhall, How to develop a communication plan, key messages, [Online]. Available from: http://www.hieran.com/comet/howto.html [Accessed 05 Feb 2010] Robin Mayhall, How to develop a communication plan, tactics, [Online]. Available from: http://www.hieran.com/comet/howto.html [Accessed 05 Feb 2010] Fine ArtsFund, Creating a communication plan, Online]. Available from: http://www.artsincubator.org/marketing/communication-plan [Accessed 09 Feb 2010] River Island, [Online]. Available from: http://xml.riverisland.com/flash/content.php [Accessed 09 Feb 2010] River Island [Online]. Available from: http://isw.changeworknow.co.uk/riverisland/vms/managers/positions/RI-7Y6FJL01 [Accessed 09 Feb 2010] Tungate, M, 2008. Fashion Brands : Branding Style from Armani to Zara [Online].2nd Edition. Kogan Page, Limited. Chapter 4. The designer as brand, p280. Available from: http://site.ebrary.com/lib/westminsterintl/docDetail.action?docID=10250421p00=communication+plan+fashion+promoting [Accessed 12 Feb 2010] CUS, Writing guide research, advantages and disadvantages of the survey method, [Online]. Available from: http://writing.colostate.edu/guides/research/survey/com2d1.cfm [Accessed 09 Feb 2010] Trend hunters, Fashion Product Placement Gossip Girl Boosts Alexandra Vidal, [Online]. Available from: http://www.trendhunter.com/trends/gossip-girl-alexandra-vidal-fashion [Accessed 10 Feb 2010] WARP (2004), Example of WARP communication plan V1.1, 3.2 Audience, [Online]. Available from http://www.warp.gov.uk/Marketing/CommPlanV1.1.pdf [Accessed 10 Feb 2010] Chris Odel, ezinearticals, Promote Your Own Clothing Brand Top Fashion Networking Sites [Online]. Available from http://ezinearticles.com/?Promote-Your-Own-Clothing-BrandTop-Fashion-Networking-Sitesid=1102112 [Accessed 10 Feb 2010] QuestionPro, Fashion attitudes, [Online]. Available from: http://www.questionpro.com/akira/showSurveyLibrary.do?surveyID=148mode=1 [Accessed 10 Feb 2010] Kate Russell, How to start a fashion show, [Online]. Available from: http://www.ehow.com/how_4443476_start-fashion-show.html [Accessed 10 Feb 2010]

The various types of Dividend policies used by companies

The various types of Dividend policies used by companies Dividend policy has drawn due attention from various researchers. One of the most famous studies in this respect is Miller and Modigliani hypothesis (1961), which asserted that the cash dividend policy is not important because it has no effect on the companys value, and as such it does not affect the company owners wealth. This is due to the fact that companies follow a Residual Dividend Policy which is based on reinvestment of corporate profits in the available investment opportunities (Van Horne 1983; Arnold 2008) with positive net present value and distribution the surplus cash as a cash dividend to shareholders. The above hypothesis aroused a lot of controversy on the part of researchers. However, the most important study that opposed it is that of Partington (1985) which claims that the companies do not follow in practice the residual dividend approach as the dividend decisions taken independently from the investment policy. Right now, controversies continue among researchers based on the subject without arriving at any decisive results This chapter will study the public dividend policy to shareholders, which is considered to be one of the most important financial decisions, in view of its direct relationship to shareholders and financing decisions and investment in the company. The chapter will also cover the alternatives to be addressed consisting of general dividend policy and theories that linked the cash dividend policy with the company market value, and therefore the company owners wealth in addition to the share dividend policy and buying back policy, besides the cash dividend policy and its relationship with the investment policy 2-2 General Dividend Policy The Company Board suggests distribute dividend to shareholders in an annual meeting (Watson and Head 2004). The main interest is to suggest acceptance and secure fair dividend for shareholders consistent with the rate of dividend decided by the company management. Therefore, in preparing dividend distribution, the mangers do not look only for current year profit, but they, instead, will look for the future earnings expected, and hence for the ability of the company to maintain a stable rate of dividend taking into consideration the systematic growth of this ratio. On their part, the investors are aware of this truth, and they look for a profit increase in a positive vision expecting throughout a stability of the future dividend. When the company achieves high profits for a particular year and do not expect the same level of profit for next years, they will make normal dividend and give additional dividend so as not to disappoint the investors hopes in the future. The profits are then divided into two dividends, a normal and an incremental dividend, to make notification to investors that this type of dividend is unexpected and would not continue in the future (Levy and Sarnat 1994). There are several alternatives for the profits dividend. The company may either distribute the profits in the form of regular cash dividends, or it may distribute profits in the form of shares dividends to shareholders. However, the above two types may be distributed at the same time. Besides that, shareholders can also obtain profits when the company tends to repurchase its shares, and considers the regular cash dividend as something quite common (Broyles 2003). The percentage of the profits distributed by the company is typically governed by several considerations. In addition to the law which prohibits the distribution of profits unless the company achieves a profit after deducting reserves, the contracts of the bonds, in case the company issues these bonds, often prevents companies from increasing the proportion of cash dividend on a certain level to secure the rights of bondholders (Watson and Head 2004). Thus, the general dividend policy may well looked upon on the basis of differentiating between the cash dividends and the shares dividend through capitalization of profits, or through buying back the companys shares. This is due to the fact that the investment policy is fixed. The company will thus detain profits to finance capital spending on growth and expansion or debt repayment, or extinguish the bonds if any, and distribute the remaining cash as a cash dividend, and also to finance any deficit in capital spending by issuing new shares or through outside borrowing. The company could detain the necessary funds to finance capital expenditure and re-buy part of the shares issued and distribute the remaining as a cash dividend. These alternatives will not affect the companys value, and therefore the wealth of shareholders, if the company is operating in market characterized by ideal, efficiency and depth (Merton and Modigliani 1961; Black and Scholes 1974; Peter 1996). In case such characteristics are absent of the market, one can expect arguments about the impact of dividend policy, particularly cash, on the value of the company, and therefore the wealth of shareholders. The second group (Gordon 1959; Blume 1980; Dyl and Weigand 1998; Koch and Shenoy 1999) believes that increasing the percentage of cash dividends would increase the companys value, thus increasing the shareholders wealth, while the third group (Litzenberger and Ramaswamy 1979; Blume 1980; Litzenberger and Ramaswamy 1982; Ang and Peterson 1985) believes that increasing the percentage of cash dividend will lead to a decline in the value of the company, thereby reducing the wealth of shareholders. These groups together with their theories will be discussed when dealing with the policy of cash dividend. The profits will be transferred to return earnings account, which is used for purposes determined by the board and the approval of the General Assembly of the company. This account is usually used to maintain a stable dividend amount of cash dividends (a systematically dividend policy). During the years where the company cannot meet the amount of normal dividend, they will tend to the return earnings account to insure any deficit. The General Assembly of the company has full authority to use this account for normal or abnormal cash dividend in whole or in part. It could also be used for company repurchase share, or for capitalization this account and distribution of share dividends to shareholders. On their part, shareholders can obtain their profits through a set of policies that can be combined in a single year, but it often takes one of the following alternatives(Watson and Head 2004): A cash dividend policy Shares dividend policy Buying back shares policy 2-3 Cash Dividend Policy The impact of cash dividend policy on current prices of the company shares is considered to be very important, not only for policy makers, but also for investors, portfolio managers, and economists interested in the performance of capital markets (Watson and Head 2004). The questions to be raised here are: Can managers maximize the wealth of the owners of the company through a particular dividend policy? (Lumby and Jones 1999) Are the companies with high dividend sold with premium? Should the shares of companies that retain their profits or distribute a percentage of its profits, be sold as well in a lesser price? The fact is that these questions were, and still are, the subjects of many applied studies. Until now, there seems no consensus on the answers to these questions. The reason is the presence of other relevant factors that affect the market value of the shares that enable us to measure the impact of dividend policy on profits alone. This means that researchers did not so far prepare both proper and adequate tests and studies to distinguish between different hypotheses. The arguments among researchers about the dividend policy focus on that part of the cash dividend to be distributed to shareholders and its impact on the companys value and therefore the wealth of the owners of the company. Miller and Modigliani (1961) see that the cash dividend does not affect the value of the company, as the companys value will not be affected by how earned profits are divided; but rather affected by the ability to achieve profits. Thus, there is no point in thinking of how to divide profits between dividends and return earnings, while thinking must be directed towards maximizing these profits through the optimal investment policy as the way by which the cookie is divided will not lead to increase its size. In the opinion of others (see, Olson and McCann 1994; Lipson, Maquieira et al. 1998), the manner in which profits are divided between dividends and return earnings affects the companys value through an increase or decrease in the demand for the company shares, as the investors with high incomes usually prefer companies without cash dividend if the value of taxes on cash dividend exceeds the taxes on capital gains, while investors typically prefer companies that cash high dividends if they do not pay taxes or who were in low category of taxes. Also, investors in growing companies may not ask the company to distribute high cash dividends and accept, instead, low cash dividends. This is because the internal return rate in these companies is usually greater than the costs of obtaining funds from sources other than return earnings, and thus maximize the wealth of shareholders through the detention of all or most of the profits and use them to finance projects which have positive present v alue. Investors in non-growing companies, on their part, look for high dividends (see, Walter 1963). From the foregoing discussion, it is viewed by many scholars that the harmony between cash dividend policy with investor wishes will affect the market value, due to any increase or decrease for the company shares emanating from this harmony or compatibility, which will be reflected on the price of its shares. The decision of cash dividend policy, particularly its cash portion, is one of the challenges facing company managers, because the distribution decision defines the funds to be given companys shareholders, and therefore the funds to remain for managers in the company to reinvest (Lumby and Jones 1999). The cash dividend policy can be considered as an action plan for the company to be followed when the company needs to make a decision regarding cash dividends, so that this plan could provide several options from which the company can choose to reach the desired goal. Such a plan is laid taking into account the following two main goals: Maximizing the wealth of shareholders and meeting the company needs to finance its investments. There are several factors affecting the decision to choose the most appropriate alternative among the alternatives available in the action plan. These factors are: legal, contractual, internal shareholders and market considerations. These factors reduce the available alternatives for the company in order to achieve its aims through a cash dividend policy practice. The available alternatives include the companys range of cash dividend policies the company could follow (Gitman 1997; Brigham and Houston 2004) . These include: Fixed dividend policy rate Regularly dividend policy Regularly low fixed dividend with special or added dividend Remaining cash dividend policy. These policies will be discussed in detail as follows: Fixed Dividend Policy Rate This percentage is determined by apportionment of dividends on profits earned. The percentage distribution of 80% of the net profits derived mean that the company will distribute 80% of its profits and reserves 20% of retained earnings. Since corporate annual profits are not fixed, adopting this policy will lead to a fluctuation in the amount of dividends because the stability of the dividends rate from non fixed profit leads to a difference in the amount of the annual dividends, which is the main criticisms of this policy. Since the fluctuation of the quantity of dividends is one of the benchmarks that measure the risks of the company and because the non fluctuation of the profits is usually seen as something positive for current and future performance of the company, the prices of company shares that follow such a policy may be adversely affected by this policy. Regular Dividend Policy The company, according to this policy, pays fixed rates as a dividend each year. For example, they may pay $0.2 per share each year, which will be fixed next years. This policy gives a positive indicator about the company because of the stability of the quantity of dividends, leading to reduce the risks of uncertainty. The companies that follow such a policy tend to increase the dividends rate whenever they feel that the increase in profits is steady and continuing in the future. Low regular fixed policy with special or added dividend Some companies follow a policy of systematic low dividend with additional dividends when the companys profits are unstable and highly volatile so that the companys profits are high in a given year but low in another, which makes it difficult for it to follow a regularly high-level profits distribution policy be able to maintain it. The company, therefore, seeks to pay low dividends characterized by being consistent and continuous and then pay other additional and unusual dividends in the years where it can secure high profits. The company thus has been able to achieve consistency and continuity in the level of profitability, which are indicators of great importance on the part of investors, who consider this as something necessary for building confidence with the company. Remaining cash dividend policy The optimal cash dividend rate for any company is best determined by the differentiation between a numbers of factors (Brigham, L. et al. 1999) Shareholders preference for cash dividend or capital gains. Investment opportunities available for the company. Optimal structure mix for the companys capital (money sources). External financing costs The last three factors combined affect the remaining dividend policy which is based on distributing cash dividends which exceeds the companys to finance all company investment opportunities that have positive present value. The company should make the following three steps when applying the remaining cash dividends policy (Brigham and Houston 2004) Identifying all the available investment opportunities which have positive present value and in which the company wishes to invest. Determining the optimal structure mix of capital that achieves the lowest cost. Using the profits to finance new projects with positive present value because of their low cost in comparison with new share issues in case they represent the best combination of capital. Based on this concept, and as long as the money needed by the company to reach the optimal mix of the capital structure is the equity funds , and not money borrowed, and as long as the need for funds exceeds the companys achieved profits and return earnings, the company will not make any dividends distribution for shareholders (Van Horne 1983). But in case the funds needed are less than the return earnings, the company will take its cash needs and distribute the exceeded money as a cash dividend for shareholders. Besides that, if the optimal capital structure mix does not make it incumbent upon the company for financing or allowing to borrow without leading to the level of damage risks of the company, the company then may distribute profits to shareholders because of lack of need and also because these profits are considered as surplus (Arnold 2008). 2-3-1 Factors affecting cash dividend policy A combination of factors affect the cash dividend policy and put pressure on the management when a dividends proposal is submitted to the General Assembly to be taken as a justification of reference for the Assembly when ratifying or adjusting this proposed. These most important of these factors are arguably (see, Damodaran 1997; Gitman 1997; Brigham, L. et al. 1999; Brigham and Houston 2004) the following: legal, contractual, internal, growth and the expected expansion, shareholders preferences for cash dividend or capital gains and capital market considerations. These factors are explained here in some details: Legal restrictions Cash dividends should not exceed the total of retained earnings plus net profits for the current year. This is known as the Impairment of Capital Rule. If the companys net profits equal to $500 thousand and it the retained earnings of $ 2 millions, then it should not distribute profits more than $ 2.5 million; but if there is retained loss within equity amounting to $200 thousands, then it should not distribute more than $300 thousands. Contractual restrictions Usually borrowing contracts restrict the amount of profits allowing the company to distribute to shareholders to ensure the rights of the lenders. When the company issues borrowing bonds, the contracts usually include both permissions and restrictions from the date of bonds issuance till bonds date off. The bonds contract often will not allow the company to distribute cash dividends only if they exceed the amount earned in a certain amount. The contract might also prevent the company from increasing the percentage distribution of normal profits or may determine the profits that could be distributed by the companys net profits for distribution. The company accepts such conditions on themselves to reduce the risks of borrowing from the viewpoint of the lender, thus reducing borrowing costs. There are also restrictions on cash dividends imposed upon issuance of the preferable shares of the company. In this respect, it is natural to restrict the distribution of any dividends to ordinary shareholders unless they pay all preferable share profits. Internal constraints The companys ability to pay cash dividends is affected by the quantity of liquid funds available, not by profits and return earnings only. Although the company could resort to borrowing for financing the cash dividend or issuing new shares to finance the dividend process, the companies often do not do that because of high costs for this decision. The company can use it in urgent cases to stabilize the amount of dividends, since the fluctuation of the value of dividends may convey a cost that could be higher than the distribution finance costs. Thus, the companys ability for cash dividends or desire to distribution is often constrained by liquid funds available. Company expected growth and expansion The volume of capital expenditure required for financing expansion and growth significantly affects cash dividend policy adopted by the company. If the company is in continuous expansion and development, using modern technology, they will need all the funds available to finance operations. On the other hand, the companies that have reached the stage of maturity are more able to distribute cash dividends than companies in growth. Shareholders preference for cash dividends or capital gains One of the management functions is to maximize the company owners wealth therefore we should take into account the owners interests when preparing the cash dividend policy. The companys ability to distribute cash profits and desire to do so are often constrained by several important factors affecting the interests of company owners (Brigham, L. et al. 1999): Tax status of the companys owners: If most of the companys owners are affluent are in high tax brackets, the company will resort to a dividends policy whereby it can reduce the impact of taxes on the shareholders profits. Investment opportunities available for company owners If shareholders can obtain returns for re-investing their profits exceeding the companys returns, the company must distribute a greater proportion of profits to enable shareholders to maximize their wealth by reinvesting these profits. But if the companys returns are more than shareholders returns, then the company must transfer the maximum part of their profit to return earnings for reinvestment in order to maximize the shareholders wealth. The steady control of former shareholders If the company tends to distribute all, or most, of profits achieved over the years, it will find itself forced to issue new shares to finance the expansion and development projects. This would first lead to mitigate and minimize the control of the companys former owners of the company; and then the profits to be gained would be reduced because of the increasing number of company owners due to the issuance of new shares. This situation could be remedied through the allocation of shares, by allowing old shareholders to subscribe for new shares, each according to his/her contribution and giving them priority in this respect. The company could also resort to another alternative, i.e. to reduce the proportion of cash dividends if they want to retain full control over old shareholders and show no inclination towards increasing the number of shareholders. Stable and clear dividend policy Investors give special importance to the stable and clear dividends policy. Also, they give special importance for the continuity of these dividends because they believe that the stability, increase, and continuity of dividends would surely lead to reduce risks from the standpoint of investors. Therefore, investors tend to discount returns of companies whose policies of distribution are characterized by stability, increase and continuity at a discount rate less than other companies. This means that they highly evaluate these companies; in other words, they ask for a less rate of returns, thereby reducing the companys capital cost. Profit information content Investors are interested in the informational content of the profits. Through these profits, they can read the management forecasts for company future profits. As the mangers have more precise information about the company investors, on their part, will give special attention to the informational content of the profits. 2-3-2 Theoretical Framework for Dividend policy and its impact on market value We can clarify the theoretical framework for the relationship between the dividend policies (cash, shares and repurchase) and market value of the company through the Irrelevant Theory was brought by M M in 1961. They suggested that there was no relationship between the dividend policy and market value. Many researchers have supported this theory, but also others have suspicion about it. The advocates researchers believe that companies should follow residuals dividend policy while the opponents researchers divided into two divisions, the first believes that there is a positive relationship between the dividend policy and the company market value, others said that this relationship is negative. The relationship between the dividend policy and the company market value is also affected by other dimensions which create a number of other theories, where we find that the uncertainty created a bird in the hand theory , the presence of taxes helped to find a Tax Effect Theory, either shareholders loyalty has created a Clientele Effect Theory, Management try to send some information through the dividend policy covered by Signaling Effect Theory, while the separation of management and owners (shareholders) has created Agency cost Theory. Therefore, we can draw the theoretical framework for the study through the following form: Theoretical Framework (figure 2-1) Share Dividend Positive Relationship Negative Relationship Irrelevant Market Value Relationship Dividend Policy Irrelevant Theory Relevant Residual Dividend Policy Bird in the Hand Theory Tax Effect Theory Clientele Effect Theory Signaling Effect Theory Agency Cost Theory Cash Dividend Share Repurchasing 2-3-2-1 Irrelevance Proposition There is a belief among many finance and economics specialists that cash dividends policy is not important because it is not relevant and does not affect the owners wealth. The source of this belief is a study conducted by Miller and Modigliani (1961). This study concluded that the dividends policy has no effect on the companys value, so the managers will not be able to maximize the owners wealth through a dividends policy. The irrelevance proposition concept for dividends policy on the owners wealth stems from the fundamental idea that companies which distribute continuous high cash dividends to shareholders and secure a little bit higher share prices (Archer, Choate et al. 1983; Lumby and Jones 1999). As a result, the investors capital gains are very limited in this company as he would receive the same returns received by other investors holding another companys shares with low dividends while its prices become high because of the return earnings, and so he obtains high capital gains which compensates the limited cash dividends. In both cases, the shareholders wealth is the profits obtained by cash dividend plus capital gains realized from rising share prices. In case there are no taxes or whether taxes on capital gains are equal, the investor will not be affected, whether the company has established cash dividends or kept the profit in return earnings and the investor has obtain capital gains when se lling his shares as a result of the rise of the companys shares by cash undistributed profits with no change in the other effective factors. This theory is based on the following assumptions (Merton and Modigliani 1961): There are no taxes, or the taxes rate on cash dividends and taxes rate on capital gains are equal. There is no transactions cost for the process of selling or buying shares so that, if the investor needs cash, he will be able to sell his shares without losing any commissions and fees instead of cash dividends. The investor is absolutely rational in his decisions. There are no agency costs. This means that the company managers that distribute low cash dividends do not use the company profits to achieve personal goals that may harm the company (Jensen 1986). The company operates under a full and efficient market, which means that the information is available and accessible to all at the same time without any costs, and the stock prices reflect information and absolutely influenced by it at the moment provided. There is no information gap, including that the company operates under a full and efficient market. The future outlook on the performance of the company is homogeneous among all investors, as so do information and expectations among managers and investors. According to irrelevance proposition, the dividend policy affects only the level of external financing required to finance future projects with positive net present value. This means that each dollar distributed to shareholders represents a capital loss of a dollar. According to this hypothesis, the only constraint to the companys market value is the companys investment policy, not the companys dividends policy followed. This is because the investment policy is responsible for future profits (Miller and Modigliani 1961). Accordingly, the companys decision on the distribution of cash or non-profit distribution would not affect the market value of the company and therefore would not affect the owners wealth. This hypothesis recommends that managers should give greater importance to the investment policy and let the dividends policy follow the investment policy, which is known the Residual Dividend Approach. The advocates of the irrelevance proposition hypothesis (Black and Scholes 1974; Miller and Scholes 1978; Merton and Myron 1982; Merton 1986; Peter 1996) adopt the idea that the investor can build his own cash dividends policy regardless of the companys dividends policy. This is known as Homemade Dividend(Merton and Modigliani 1961) where the investors can obtain income through selling part of his shares equal to the value of cash profits that could have been distributed by the company, if the company does not have cash dividends and the investor himself wishes to receive cash dividends to meet his consumer needs. He may wish also to reinvest cash dividends distributed by the company in case the investor shows no desire for cash dividends. By following this method, the investor will not be affected by the companys dividends policy, and therefore would not be compelled to abandon the stocks of companies followed by a dividends policy which is not consistent with his wishes. One of the criticisms against the irrelevance proposition hypothesis is that it cannot be practically acceptable. The theory of building a dividends policy for each investor based on efficient market, with no transaction costs for buying and selling (Dempsey and Laber 1992), is not practical. In addition, the investor will pay taxes on cash dividends or capital gains, making the adoption of a specific dividends policy for each investor something costly. Besides, the investment in companies whose cash dividends policy is consistent with the investors needs is less expensive than building a special dividends policy. The hypothesis has been built on the basis that the investor is quite rational when taking his decisions. The psychological tests have proved, however, that human beings are not rational one hundred percent with regard to decision-making. Shefrin and Statman (1984) in their study said that investors have an unreasonable preference regarding the profit dividends; this is not consistent with the irrelevance proposition hypothesis. The irrelevance proposition hypothesis is also criticised for assuming equality between the cash dividends and capital gains, while cash dividend is a cash in hand without any uncertainty risk, and the capital gains is cash in the future with a lot of risks. So, how can they be equal? The irrelevance proposition hypothesis has been built on a set of assumptions and data that have already been indicated. It is understood here that any change in these assumptions and data would naturally lead to a change in the basic hypothesis and therefore to a change in the results. Accordingly, and in practical terms, the financial markets in general do not agree with these assumptions.

Neurotheology: Which came first, God or the brain? :: Chemistry Neurotheology Papers

Neurotheology: Which came first, God or the brain? à ¬It feels like a loss of boundaryÃâ€"Ità ­s as if the film of your life broke and you were seeing the light that allowed the film to be projectedÃâ€"à ®: Michael Baime describes the sensations he experiences during Zen meditation. Michael is a subject of the brain imaging study performed by scientists Newburg and Dà ­Aquili to track neural activity during Zen meditation. Newburg and Dà ­Aquili wanted to find out which brain sections were most active during the meditative states achieved by Michael and his fellow subjects. (2). Which regions of the brain are most active during spiritual or mystical experiences? Can an understanding of the neuroscience of spirituality prove the existence of God? It can be difficult to unobtrusively track the neuronal activity of those in intense states of meditation or prayer without jolting them back into everyday perception. However, using Single Photon Emission Computed Tomography, or SPECT, scientists Newburg and Dà ­Aquili were able to track neuronal activity in skilled meditators without disturbing them. With an intravenous tube in their arm, each meditator focused intently on a single, usually religious image until they achieved their familiar meditative sense of à ¬onenessà ®. When each meditator felt this sense, they tugged on a string to alert the researchers, who then injected a radioactive tracer into the intravenous line. The tracer bound to the brain regions where blood flow was highest. A scanner then made a snapshot showing the regions with the most blood flow, which indicates neuronal activity. (3). Since the meditators were focusing intently, the Prefrontal Cortex, associated with attention, lit up. But more strikingly, the parietal lobes showed very little activity. Part of the cerebrum, the parietal lobes are associated with the orientation of the body in space and processing information about time and space. More specifically, the left superior parietal lobe creates the perception of the physical bodyà ­s boundaries. The right superior parietal lobe creates the perception of the physical space outside of the body. (3). Blocked off from neuronal activity, the parietal lobe cannot create a sensation of boundary between the physical body and the outside world, which may explain the meditatorsà ­ sense of à «onenessà ­ with the Universe. Since the parietal lobes were also unable to perform their usual task of creating our linear perception of time, meditators achieved a sensation of infinity and timelessness.

Compare Foxs The Case for Animal Experimentation vs Darnovskys Revisi

Fox's The Case for Animal Experimentation Chapter 2 and 3 and Darnovsky's "Revisiting Sex Selection" 1. What is the challenge/problem presented in this article? Darnovsky’s article explores the upcoming moral challenges that are tied to the renewed interest in marketing sex selection to parents. There are a myriad of ethical issues tied to the option of deciding the sex of one’s child that fall far outside the scope of the question â€Å"Are we playing God?† However, it is the implications of the option to decide the gender of a baby that are more profoundly disturbing. In a society where perfection in appearance and â€Å"brains† is already prized above all else, it seems unlikely that wealthy parents could resist the urge to guarantee that their child will be, really and truly â€Å"perfect.† In the class discussion following her presentation, the sentiment that â€Å"no one would try to make their baby perfect,† emerged. This is easily refutable by the work already being done in the field towards this end, as well as the phenomenon of â€Å"baby Einstein† products and other contemporary voodoo that promise parents that their babies will score extremely high on the SATs. Darnovsky explains the possible repercussions of the irresponsible marketing of sex selection including the challenges it will present to feminism, the resurgence of eugenics as well as the key transnational issues that are at stake. One of the biggest dangers highlighted is the rapid pace at which technologies are progressing. Darnovsky describes new technology like a runaway train progressing far faster than corresponding ethical considerations. In The Case for Animal Experimentation by Michael Fox, the philosophical, evolutionary and moral issues surrounding... ...ith Michael Fox that the unique human capacities make us very distinct from other animal species. However, we believe that saying that these capacities make us a superior species is an anthropocentric viewpoint, because it stems from the idea that our place in the world is the best possible. We do not think animals should be denied â€Å"full membership in the moral community† because of their â€Å" lack of autonomy and moral agency†. This judgment is entirely based on anthropocentric ideas of animals’ social organization and emotions. We do not agree with Fox that animals’ lives lack intrinsic value and that they are essentially meant for us to be used. Works Cited Darnovsky, Marcy. 2004. "Revisiting Sex Selection.† GeneWatch Volume 17: Number 1. Fox, Michael Allen. 1986. The Case for Animal Experimentation. pp. 31-90. Berkeley: University of California Press.

Capitalism or Moral Enlightenment in Joseph Conrads Heart of Darkness :: Heart Darkness essays

Heart Of Darkness - Capitalism  or Moral Enlightenment   Joseph Conrad’s novel Heart of Darkness is about a seaman named Charlie Marlow and   an experience he had as a younger man. Early in the novel it becomes apparent that there is a great deal of tension in Marlow’s mind about whether he should profit from the immoral actions of the company he works for which is involved in the ivory trade in Africa.   Marlow believes that the company is ignorant of the tension between moral enlightenment and capitalism. The dehumanization of its laborers which is so early apparent to Marlow seems to be unknown to other members of the Company’s management. In this story Marlow’s aunt represents capitalism. Her efforts to get him a job are significant because of the morally compromising nature of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, â€Å"You forget, dear Charlie, that the labourer is worthy of his hire† (12). It is clear that Marlow has mixed feelings about the whole idea. At one point, trying to justify his actions to himself, he says, â€Å"You understand it was a continental concern, that Trading Society;   but I have a lot of relations on the living continent, because it’s cheap and not so nasty as it looks they say† (12).   Marlow finally takes the job, however, and tells himself that the pain and unusually harsh treatment the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions such as, â€Å"Ever any madness in your family†(15)?   In this part of the story Marlow is made to feel small and unimportant.   Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been second guessing his decision and feeling some kinship with the other (black) workers who are exploited, but he does not reveal any such understanding. Upon reaching his destination in Africa, Marlow finds that things are just   the same. At the point when he is denied rest after traveling twenty miles on foot he sees things are not going to change.   Marlow then tells of how disease and death are running wild through-out the area, and the company does nothing in the way of prevention other than to promote those who stay alive. Capitalism or Moral Enlightenment in Joseph Conrad's Heart of Darkness :: Heart Darkness essays Heart Of Darkness - Capitalism  or Moral Enlightenment   Joseph Conrad’s novel Heart of Darkness is about a seaman named Charlie Marlow and   an experience he had as a younger man. Early in the novel it becomes apparent that there is a great deal of tension in Marlow’s mind about whether he should profit from the immoral actions of the company he works for which is involved in the ivory trade in Africa.   Marlow believes that the company is ignorant of the tension between moral enlightenment and capitalism. The dehumanization of its laborers which is so early apparent to Marlow seems to be unknown to other members of the Company’s management. In this story Marlow’s aunt represents capitalism. Her efforts to get him a job are significant because of the morally compromising nature of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, â€Å"You forget, dear Charlie, that the labourer is worthy of his hire† (12). It is clear that Marlow has mixed feelings about the whole idea. At one point, trying to justify his actions to himself, he says, â€Å"You understand it was a continental concern, that Trading Society;   but I have a lot of relations on the living continent, because it’s cheap and not so nasty as it looks they say† (12).   Marlow finally takes the job, however, and tells himself that the pain and unusually harsh treatment the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions such as, â€Å"Ever any madness in your family†(15)?   In this part of the story Marlow is made to feel small and unimportant.   Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been second guessing his decision and feeling some kinship with the other (black) workers who are exploited, but he does not reveal any such understanding. Upon reaching his destination in Africa, Marlow finds that things are just   the same. At the point when he is denied rest after traveling twenty miles on foot he sees things are not going to change.   Marlow then tells of how disease and death are running wild through-out the area, and the company does nothing in the way of prevention other than to promote those who stay alive.

Choosing your theorist and theory

Much research and thought has been put into our school's programs to meet the needs of many diverse learners. Throughout time, theorists have developed any theories that we, as educators, continue to use to this day. Thanks to their contributions, we have been provided with the best educational tools to cultivate young minds today. Every educator has their own opinion as to what theory they think is best. After reading various theories, there is one in particular that I truly believe to be the most beneficial which is The Behaviorism Theory. Behaviorism theory, also now as behavioral psychology Is a theory of learning based upon the Idea that all behaviors are acquired through conditioning† (Cherry, 2011 B. F Skinner and John B. Watson are the two creators of the behaviorism theory. They stated that development included learned behaviors. These learned behaviors are based on positive and negative experiences within their everyday environments. Every action has a consequence. I think that's a way to look at the way children learn over time.For example; when I was teaching at a different Children's Center, here was a little girl who would cry nonstop till I or someone else picked her up. We believed that at her house, the minute she cried, someone would be there instantly to pick her up. She never learned how to self soothe and knew that crying would get her the attention she wanted. She learned this behavior at home and brought it to school with her, thinking it would also work there. She had never been taught that crying wasn't a way to get what you want. It was our responsibility at school to break that habit.Instead, I would say directly to her, kneeling down to be on her level, â€Å"I will elk to you when you use your words and big girl evolve to tell me what you want†. Over time, she learned that crying wasn't getting her the attention she wanted. She decided to take the approach I offered her instead. This ultimately worked out the best for e veryone involved, her parents included. It was a learned behavior. This is what B. F Skinner defined as Operant Conditioning; which is â€Å"The behavior is followed by a consequence and the nature of the consequences modifies the organisms' tendency to repeat the behavior In the future† (Before, 2000).Operant conditioning can also be used for a positive behavior as well. There was a little boy I recently anatine for, his parents were ready to begin potty training him and they weren't sure how to go about it. After they thought it over, they decided to go about it with a rewards approach. If the little boy sat on the potty for 3 minutes, he'd receive a piece of candy. After a few attempts at sitting on the potty, he caught on. Sit on the potty, get a piece of candy. Then, the trick was to get him to actually go while sitting. When he affably went, Mom was clapping and praising him.He was so happy! She continued praising helm every time he went and he Is now fully potty traine d. Positive reinforcement was key in this situation. This is what's known as â€Å"Continuous Reinforcement†. I truly believe in being a constructive, firm, respectful and motivating educator. Providing a child with an environment full of positive reinforcements and consequences encourages the children to continuously strive to do their best. It children listened really well during circle time, they'll get extra time on the laggardly that afternoon.I believe that children learn in their own ways and grow at different rates. I believe that providing a hands on approach to learning is key in a child's development. There are 5 developmental domains that we as educators really focus on. These domains are physical, intellectual, language, emotional and social development. These different domains can be easily remembered as PILES. There are many ways to help children develop in each of these domains. For example, having age appropriate toys ND activities readily available can help their intellectual and physical domains.I feel that it's important to provide a stimulating environment for children to grow and develop emotionally, socially, and intellectually. Our classroom gives you child the opportunity to learn on many different levels. We provide age appropriate books, crayons, paper, and art activities to help create your child's language development. We encourage the children in our class to work together as a team and form friendships among their peers. By doing this, we are helping develop their social and motional skills.We have full access to our playground as well as our multi-purpose room for all our physical activities. We take advantage of our playground and being outside on a daily basis to keep our kids active and healthy! My classroom is a place where children can laugh and learn throughout the entire day. I feel that applying the theories many educators have set forth helps us provide the best education possible for today's youth. Children are our future and it is our responsibility to help them become the best person they can be.

Applying Behavioral Theory to an Innovative School-Based Program for Preventing Underage Drinking and Impaired Driving

Edwena Corley African American Future A Review and Analysis of the American Journal of Health Studies’ Article Applying Behavioral Theory to an Innovative School-Based Program For Preventing Underage Drinking and Impaired Driving Diane Everett September 24, 2012 The article yields to the dangerous reality that underage drinking is a problem. The article further notes that it is also met publicity that peaks and shifts throughout decades.Currently all drunk drivers are being targeted on a national scale, but teen driving is not being addressed head on as it had been previously. One model and theory, the transtheoretical model and the social cognitive theory, were presented within the article in an effort to explain why underage drinking takes place and also why adolescents who have been drinking, regardless of whether or not they are intoxicated, believe that they are able to function and drive at the same rate and with the same control as when they are sober.They also present solutions at interpersonal and community levels. The interpersonal level of change seeks to alter peer influence and the community level promotes positive behaviors such as abstaining from alcohol and denounces negative behaviors such as drinking and driving. The latter is generally presented in the form of real life scenarios. Price et al. (2009) notes that alcohol is the premier drug of choice for adolescents, with the onset of underage drinking occurring, on average, around age 13.In 2001, 13% percent of high school students reported operating a vehicle on one of more occasions after or while drinking alcohol, and 31% reported being a passenger to a peer who had been drinking. These statistics are startling but not as much as the following facts derived from that same year: 3,608 drivers between the ages of 15 and 20 were killed and an additional 337,000 were injured in car crashes. Approximately 25% of drivers between the ages of 16 and 19 who are killed in crashes were legally intoxicated.Peer pressure, the liberal attitudes that parents possess toward underage drinking, and also the concentrated levels of alcohol advertising campaigns have been identified as roots causes of underage drinking. Some parents believe it is acceptable if their children and their friends drink as long as they are purchasing the alcohol for them, and are monitoring their use of the substance in home (Price et al. , 2009). The article mentions a program known as Shattered Dreams sought to weed out the issues or variables that influence underage drinking.The data gathered from this program was used to bring about awareness and offer solutions. The transtheoretical model that the authors propose for the execution of combative solution to the issue of underage drinking and driving has five stages: pre-contemplation, contemplation, preparation, action, and maintenance. The precontemplation stage deals with the subject being in denial about their problematic behavior, while in the co ntemplation stage the subject realizes that a problem exists, however they have not yet begun to take steps toward correcting the issue(s) at hand.The preparation stage acts a mile marker because it is suggestive of the subject actually making a conscious decision to change their problematic behavior by utilizing their newly acquire skills and continuing to learn new skills that are conducive to more effective and continuous change. The action stage speaks for itself, as the subject then begins to put into motion the new behaviors that will replace the negative behaviors. Maintenance, the final stage of the transtheoretical model, focuses on consistency (Price et al. 2009). Teenagers, more than any other group of people believe that they are invincible, which is why underage drinking and driving is an issue; it is also why sexually transmitted diseases spread rapidly throughout high schools, and why teenage pregnancy is continuing to spiral out of control. Teenagers are often in den ial for multiple reasons; the primary reason being not wanting to feel vulnerable. The admittance of fault makes an individual feel as though they are inferior of someone or something.Admitting that one’s underage drinking is an issue could also mean no longer bring viewed as cool or part of the in crowd, because peer pressure plays a huge role in teenage social interactions. To overcome denial still does not mean that one is ready to go forth in terms of discontinuing their drinking, or drinking and opting to find a designated driver. The ultimate goal of the teenager should be to abstain because they have yet to reach the age of maturity in their state where if they would then be lawful to purchase alcohol.When an underage driver decides to abstain from alcohol altogether because they are aware that it is a crime, they must also realize that drinking and getting behind the wheel of a motor vehicle is hazardous to themselves, and also anyone else with whom they share the roa d. When applying the transtheoretical model to underage drinking and driving, precontemplation occurs when the underage person realizes that they are endangering the lives of many, but they still drink due to both obvious and unforeseen reasons (i. e. peer pressure and/or undiagnosed depression).If the adolescent suffers from depression that is unfounded to a healthcare professional, they may choose to participate in other problematic behaviors which cause them to be further engulfed in a lifestyle that will prove to be even more complicated to change. The contemplation stage may be reached when something monumental transpires, such as a close friend dying in a car accident because they too chose to drink and drive. This stage brings about a sense of urgency to change, be it brought on by fear or a true desire to change.Whatever the matter, the individual will benefit if they are willing to take the steps to help themselves. When undergoing the preparation stage the at-risk adolesce nt may seek help from a parent by asking them to set up an appointment with a therapist, depending on the severity of the alcohol related behaviors. If the drinking has reached a very reckless stage then the adolescent may meet with their parent and a healthcare professional to discuss being admitted to an institution. The action stage would consist of the teen actually going to a session of therapy.Furthermore, if the therapist proposes that the client also attend alcoholic anonymous (AA) meetings, they would be wise to attend as it compliments their treatment. If the teen is aware that they need to be in an alcohol treatment facility they would follow through with their plan to be admitted on their admit date. The most important part of the action stage is the maintenance stage because they go hand in hand. Attending only one therapy session and one AA meeting will not help or heal the issue. To be consistent with one’s treatment insures far more belief in oneself to abstai n for newly introduced reasons.The maintenance stage within an alcohol treatment facility is both simple and complex in nature. While in the facility the professionals house therein will see to it that mandatory sobriety is maintained, but the tricky part is remaining abstinent upon one’s release from the institution. The way that the social cognitive theory (SCT) fits into this model is simple. It climbs through all of the stages, rearranging the social aspects of it and calling for a sense of initiative in maintaining self-efficacy. According to Bandura (1986) and Price et al. 2009) social cognitive theory (SCT) assumes that people, their behavior, and their environments interact continuously and that specific mediators facilitate behavioral change. Thus if peer pressure is the root of underage drinking, then modifying of social spheres is necessary, but due to the self-efficacy aspect, it is the prerogative of the subject or adolescent to denounce troublesome friendships a nd establish new healthy ones. It is in no way possible to undergo treatment and continue to hang out with peers who drink and drive.Even if the new-found abstinent teen continues to act as a passenger to the intoxicated party, they may lose their lives in a fatal accident as a result. The specific mediators that are to encourage the behavioral evolution of the subject would be the aforementioned healthcare professions, parents, or a combination of both. While drinking and driving will more than likely continue to be a problem the ages, the best way to tackle it is to bring about a sense of enlightenment and urgency among teens.This has been done through preliminary findings that are indicative of improved student awareness of the risks and consequences of underage drinking and driving and suggested that students' expectations about alcohol use were less positive after participation in the program (Price et al. , 2009). Furthermore, other programs, in certain states and school distr icts across the nation vehicles that have been involved in drunk driving accidents have been approved for placement outside of high school, on the lawn or next to the signage While some students view it as a scare tactic, it is proven to work for others.The students who are unfazed by it, perceive it as a prop, but the horror is that those same individuals who do not accept the change that is imperative to protect their family, friends and ultimately themselves will more than likely end up dying in one of those cars; thereafter their vehicle or the vehicle of their victim being placed outside someone else’s school. The overall goal of this article was to urge helping professionals to bring to light the issue of underage drinking and driving but approach it as hinting that the student involved have an issue and leaving them to evolve on their own.This is because teenagers generally warm up to positive behavior faster and are more apt to accept participate in said behaviors, if they believe it was their idea, versus it being forced upon them.Bibliography Price, M. A. , Salazar, C. I. , Villarreal, C. L. , Guerra, C. M. , Villarreal, R. , ;amp; Stewart, R. M. (2009). Applying Behavioral Theory To an Innovative School-Based Program For Preventing Underage Drinking and Impaired. American Journal of Health Studies, 24(1), 223-231. Retrieved from EBSCOhost.