Case Analysis: Vasant Scribes

CASE ANALYSIS VASANT SCRIBES Kamia -D10007 Ramanjot- D10016 Tushar-D10025 BATCH EX-PGP (2010-13 ) The case talks about a medical transcription company, Vasant Scribes and the challenges faced by it in terms of growth. The revenues and company had stagnated and had tried various methods to diversify into higher value added areas of medical billing & marketing analytics that hadn't worked. The case highlights the steps that were taken and the options available ahead. Case Facts Vasant Chemicals Limited was the flagship company of the Vasant Group.After Being in the bulk chemical category for about 25 years, Mr. Chowdary, MD wanted to move into a new economy business. Vasant Scribes Ltd was the outcome of a Brainstorming by the promoter of Vasant Scribes, who had a desire to make a foray Into the IT services sector. With the help of consultants and internal reviews, the group Narrowed down on Medical transcription services as the main focus area to enter the Services business. Vasant Sc ribes transcribed about 100,000 lines of transcription per day. It had about 320 employees spread over 3 locations in Hyderabad.The Company also outsourced Some transcription work to franchisees in Vijayawada, Coimbatore and Kolkata. Phase 1: Initial years and growth pangs (1999-2001) The key challenges that the company faced during this phase were: 1. Establishing credibility in the US transcription market 2. Winning its first clients 3. Managing manpower and maintaining a redundant work-force. Phase 2: The years of rapid growth (2001-2004) In 2001, the company initiated a number of measures to improve marketing efforts, Including engaging the services of a US telemarketing services company.This strategy started showing results in the second half of the 2001. At the same time, the efforts in establishing a US based subsidiary and sending the COO to the US started paying off. Some of the key achievements of the company in this phase were as follows: This account catapulted Vasant Sc ribes from a small company to a Medium sized company 1. Wins of some medium sized clinic accounts. Most of the initial clients were a result of doorto-door campaigns. Subsequent wins were a result of references from these clients. 2. Winning a large account due to previous relationship and experience with the client. . Establishing sub-contractors in order to increase capacities without risk of redundant manpower. 1|Page Diversification Dilemma The idea to diversify was fueled by the desire to continue to grow rapidly while at the same time not exposing the company to the risks of continuing to operate in a single sector. There have been continuing discussions amongst industry players about the changing face of medical transcription including the role of technology. Some of the key areas that were considered for diversification included: ? ppraisal transcription (being similar in nature to medical transcription) ? medical billing and coding (being a natural forward integration into a high-end Outsourcing business) ? legal transcription/outsourcing (unrelated business) ? voice mail transcription (being a natural extension to medical transcription) ? marketing analytics (unrelated business) Phase 3: Challenges of diversification (2005-2007) Pursue medical billing business. It was viewed as a natural forward integration of existing medical transcription business. The medical billing ervices were offered under a different brand name of Vantage billing services to distinguish it from Vasant Scribes, which had already gained repute as a medical transcription client. Medical billing industry ? ? ? ? Medical billing process were more complex, sophisticated technological support Risky affair High level of negotiation (CFO level involvement in contract ) Fragmented Industry Marketing Analytics business overview The job of a service provider was therefore twofold to demonstrate that they had the capabilities and to show the potential client that there was a need. e make say, $1 per person per hour, we make $5 per person per hour in the case of medical billing and nearly four times as much in marketing analytics. We believe that the company must Continue to grow on the value chain for growth and survival. † Vasant Scribes Today With the issue of continued sustenance in medical transcription temporarily put away, the company was now gripped with the challenges of growing the medical billing and Marketing analytics businesses. 2|Page Some of the key issues before the management were OR Problem statement 1.Should the company continue to pursue the medical billing business? If so, How should it attempt to grow it? In the past, the company had looked at Potential acquisition of companies to gain initial credibility. Should the company pursue this option? Or, alternately, should the company look to tie-up with a reputed medical billing company in the US (essentially repeat the same trick as with medical transcription)? 2. Should the company continue to look to grow in marketing analytics, or Should it temporarily defer the plans until the establishment of the medical?Billing business? If the company were to aggressively pursue the marketing Analytics business, what should be the strategy? 3. Finally, since medical transcription had become a very large and profitable Business, should the company concentrate all its energies on this, and deemphasize The growth and diversification plans? Analysis 1) Yes they should pursue medical business only as a short term goal (as a variance) till the MTs business boom up, it should continue to do business with the US medical billing companies for contractual business. ) Market analytics is very lucrative business but requires more deployment of Resources in the form of talent manpower, continues technological upgrade, knowledge hunting, Market analytics cover the scope of Business intelligence and analytic tools, Data warehousing platform software, Performance management and analytic applica tions which was very new to Vasant scribes . Manpower hired for Business could be used in Market analytics expansion scope. They should study the markets & gather the resources to enter the analytics’ market meanwhile continue with the MTs & Medical billing business.They should adopt GO TO MARKET STRATEGIES that depend on ever finer segmentation of target audiences by industry, region & organization size. The momentum, Diversity & size is huge in business analytics market annually 3) Vasant Scribe should deemphasize the growth in Medical billing services & should focus on MTS & Market analytics service, MTs would be have volume business & Market analytics concentrated on high margin, the scope explore by Nasscom reviled big revenues generation source for Indian IT companies due to weaker going US employment. Thus creating win-win situation for both (US & INDIA CO) . 3|Page

Leading your work team Essay

Difference between leadership and management Both managers and leaders have positive and some flawed qualities with any organisation. Leaders establish direction and have vision for the future. They tend to plan ahead by developing new ideas to achieve goals set out. Other qualities they have are that they drive people to exceed their own limitations, give others some responsibility by delegating some duties. Leading using these methods and communicating inspires trust from people, colleagues and employees. When trust is achieved respects is grown from each individual and vice versa, the leaders respect each individual and each person’s merits as everyone can make different contribution but on their own level. Through empowering people with involvement they create motivation and energise people to overcome some obstacles and can defiantly have a positive outcome and see a marked improvement or change with a team and or individual. But on the other hand, leadership can be flawed and sometimes can have a negative impact on a team, especially when leaders become too friendly, they try to please everyone and sometimes within an organisation this cannot be possible. It is then that a break in mutual respect, motivation and trust appears. There should always be a line between staff, leaders and managers. Management do tend to manage the processes such as timetable, budgets and actions on a day to day basis by controlling and allocating resources to maintain the status quo or ensure things happen according to already established plans. Another difference is that they rely on control and they work on solving problems but are focused people who focus on systems, policy and procedures. Decision-making is also amongst a managers strengths. Managers tend to monitor every result against each plan and if necessary will take corrective action which makes them predictable but on the other consistent and have clear defined order. However sometimes there can be an overemphasis on outcome at the expense of neglecting the people. Why leadership is important within own team? Team leader plays an important role in guiding team members and motivating them to stay focused as every member contributes to their own level to best achieve their assigned targets or goals. Every team should have a team leader who can hold his team together and extract the best out its team members. Leaders should be a role model and be such that individuals can draw inspiration from and seek advice and guidance whenever required. An effective leadership must be impartial, support one and all equally and discuss any goals that needs to set or issues on an open forum where applicable and make tram members aware of their roles and responsibilities and not impose things on their members. Within my working organisation, we have teams that consist of ten team members of which are of mixed skill levels and each team are assigned a clinical team leader. Team leaders are approachable and they should lead by example by providing what we as organisation set out to achieve which is the best p ossible care for each person we attend to regardless of our skill level within the trust. Guidance within our work base could be from anything from personal circumstances to any clinical issues that employees require assistance, guidance, reassurance or clarification of practices. This is why it is important to have a good leadership style and person within our teams, someone who is approachable and on top of their game to be able to provide support and drive the staff to work to the best of their ability. Team leaders need to recognise each team members needs and be able to help and guide each member of its team to achieve their best potential this could be organising further training, provide emotional support after some difficult clinical cases and also show some appreciation of the diisfulct and successful cases staff attend on a daily basis. Communication is vital in our work base as many new information, policy procedures is normally cascaded to each team member via team leaders and it is important that team leaders make sure that each individual knows exactly their new or enhanced responsibilities. Despite the best intention of organisations and team leaders, some leadership styles can be ineffective and for various reasons implications and impact of an ineffective leadership can affect teams morale, goals and standard set out will without a doubt be below the expected standard. Many reasons could be  too responsible such as environmental issues i.e. teams are not given adequate resources of equipment in my work place to do their job to the highest standard. Lack of recognition of good work can have a negative impact. Appreciation can be a big morale booster. Goals that are not set out clearly and lack of communication can lead to ineffective team and mistakes can happen. This could lead to everyone doing their own thing and poor relationship between team members including team leaders can lead to conflict and personality conflicts. These issues can be resolved with planning, processes and performance appraisals etc. Different leadership styles Democratic:- One of the leadership styles, which is effective and can lead to higher productivity, better contribution from team members and it is a style that can increase on teams’ morale. Reasons for this are because team members take more of a participative role in the decision-making process. This style has a positive effect when used in work place, sometimes I have to work with a new inexperienced trainee or even lower grade colleague. We discuss together where possible any issues i.e. diagnosis, treatment of patients etc. I ask them â€Å"What are their thoughts?† and get their valuable input and opinions. I find that trainees become more confident, will ask more questions and become more eager to learn new techniques, and take more responsibility. Benefits of democratic leadership are appropriate in my field of work; staff become more involved and cares more about end result. It does have its flaws, the process of consultation can turn into procrastination and if a business has urgent issues or in my work place if we have time critical patient then democratic leadership style is not a trait that is required. Democrats can’t normally work to these tight timescales. Talking to lots of people and gathering opinions take time but true democrats are unwilling to cut corners. They can also appear indecisive and unwilling to make a decision. Coercive:- This leadership style demands immediate compliance. It is more that the leader rules by fear â€Å"my way or the highway†. Coercive leaders take charge drives to achieve and have self-control but can have an overall detrimental effect on team members. This style would not be suitable in my role, as our working ethics on a day to basis is reliant on team work and a leader of this style could cause animosity between staff and leader and could possibly lead to mistakes being made on the frontline which could be catastrophic for patients. Bu these leader ships qualities could be useful when a company is in crisis or an organisation in trouble. Pacesetter style:- This leadership style sets high performance standards to all members including him. The style sounds very admirable but has more of a negative impact on members as they tend to have a problem with trusting their team. They rest on being smarter, more thorough than everyone else and can unintentionally undermine the effects of their team members. A pacesetter would have negative impact in my work place as trust in each other is required when working as a team to achieve our goals. Undermining even if unintentionally can have a negative effect on working relationships. But on the other hand can also be effective in other field of work especially if the team are highly motivated and the members’ style and competence already fit the expectations of the pacesetter. Paternalistic:- This style is by acting as a father/mother figure by taking care of their team members as a parent would their child. They receive complete trust and loyalty from their team when they lead with complete concern of their members. Teams are expected to become totally committed to what the leader believes. Relationships are solid, but can have a negative impact if the leader starts showing favouritism in decisions and could lead to breakdown of relationships. Most commonly used leadership and its effects on own team Within the organisation I work, there are a couple of main leadership styles used. As an organisation of uniformed and non uniformed public sector, and depending on the level of leadership or where in the chain of command the style vary somewhat. The higher the chain the more bureaucratic method of leading is used. They have fixed official duties under a hierarchy of authority, applying a system of rules of management and decision-making. Bureaucratic leadership can be broken down into different components which also outline the basic structure of the NHS. Fixed official duties – Accountability Authority Responsibility Hierarchy of authority – lower grades are answerable to and under supervision of level above CEO, Directors etc Technical expertise- – Medical director has a medical background as well as management. System of rules- behavioural and technical rules i.e. scope of practice – conduct and performance management, policies and procedure Written documentation – policies, procedures to help with accountability, decision-making guidance etc. However, if this style of leadership is used inappropriately then it can have negative impact, consequences causing lack of flexibility and work throughout the team from hierarchy through to the structures below. Democratic leadership style is also used within my immediate work place, especially when working with lower grade or new trainee staff during a shift. This approach encourages staff to become part of decision-making process. For example, whilst working with a new member of staff we can attend to numerous different patients with each requiring thorough can careful examination to help us be able to treat each patient to the best of our a bility. I try to encourage new staff and lower grades to become more confident and help in making decision, deciding on treatments by asking their opinions and what their thoughts are. I find this has a positive  effect on team members, improve communication, gain respect and can produce good working ethics. The leader still has full control of its members and still has final decision but it is a decision with input from team that is encouraged. But this is very time consuming and as public service we may not have time to do this, on a more personal note some patients are time critical and this leadership style would not be appropriate at that specific time as decision need to be made very quickly and make sure that team members, colleagues, patients are safe and not harmed. Laissez-faire leadership style is also commonly used in my field of work. This is a style that can be used between team leaders and its members as the leader doesn’t get involved with our day to day work and tends to leave staff to it. Team leaders need smart, dedicated and motivated team members that they can rely on to complete a task and work to the highest standard. For example, within the ambulance service during a major incident a team leader/ officer will leave paramedics to treat patients whilst he or she is outside securing and organising resources etc. They must have trusted in its team members for this to work effectively. Like many other style it can have a downfall and can be somewhat ineffective as some times teams can feel that they have no guidance or support when they are left to get on with it! Own leadership style I believe that I have a couple of leadership style and it totally depends on the situation. As long as patients are not time critical and time is on our side I think I use a coaching style leadership because it is a style that develops people by offering hands-on advice to problem solving. It can be summed up in a phrase â€Å"try this.† It works best when helping staff to build a lasting personal and professional strengths and confidence and make them more successful overall but I suppose it can be hampered if my colleagues are defiant and unwilling to learn or change. Along with coaching style I think that I adopt a bit of a democratic leading method. As we have teams of 10 members to each team leader it is a good quality in my opinion to lead in an open style, we discuss issues openly as a team and as individuals when necessary. Ideas move freely amongst the group and discussion is relatively free flowing. I believe this style is needed in our work place as it dynamic  and rapidly changing environment. The style means facilitating the conversation, encouraging staff to share their ideas, issues and opinions and using these to make the best possible decision. I can communicate very well and communicating is one of the key elements of democratic leadership where you must be able to communicate decision, information etc back to your group, this then keeps unity, good solid relationship m trust and mutual respect between leader and its members. I would like to think that leading in this way brings out an experienced, confident and professional team.

Analysis Of The Cuban Missile Crisis History Essay

Analysis Of The Cuban Missile Crisis History Essay Introduction The Cuban Missile Crisis was an event occurred in October 1962 when the USA detected that the USSR had deployed medium range missiles in Cuba, which was ninety miles away from Florida. It was the period that the cold war reached its peak because of the possible confrontation between the two superpowers, the US and the USSR, at the time. The Cuban Missiles Crisis was a very important part of the world history because of the risk of nuclear war that could lead to the destruction of the world. Therefore, it is very fascinating to identify what happen before the crisis, the causes, the actual events in the crisis, and the impacts of the crisis (Rich 2003, 416-428). Prior to the Crisis The Cuban Revolution, began in 1956, was the outcome of extensive economic oppression of Cuba by the USA. During Batista’s, the ruthless ruler of Cuba, regime, Cuba per capita income was twice greater than other countries in general. The Cuban economy was controlled by the USA, which ow ned 90% of Cuba’s telephone and electronic services, 50% of Cuba’s railway, and 40% of Cuba’s sugar production (Johnson 1965,p 443). Furthermore, the USA put a very strict controlled on Cuban sugar production. The USA also controlled Cuban import quota, divided lands in to estates, and forced the Cuban farmers to grow monoculture crop, which was sugar (Dye thus, Cuba’s per capital income was the highest in Latin America (Johnson 1965, p. 445). However, the distribution of wealth was not equally distributed. The majority of people were illiterate, and the mortality rate was very high because the health care system was not extended to the poor in the rural areas, who remained in poverty (Mabry 2003). Furthermore, Batista was a corrupted dictator, and a pro western ruler. These political and economic oppressions from Batiste and the USA inspired Fidel Castro, the charismatic revolution leader, to revolt for reforms (Rich 2003, p. 417). Between 1956 to 1959, Fidel Castro, Ernesto Che Guevera, and his younger brother Rual used the tactic Guerilla warfare to fight against Batista’s army at Mount Sierra Maestra in Cuba where he gained support from the local framers. The guerrilla warfare proved to be successful. On January 1959, Castro and his troops were able to overthrown Batista and his government. After the overthrown of Batista government, Fidel Castro set up a shadow government consisted of major Cuban political figures. Still, the majority of power was in the hand of Castro. When the shadow government failed to put forward his reforms, he dismissed them, and took control of the government as he appointed himself Cuba’s prime minister (Rich 2003, p 418). Two months after the victory of the Guerrilla force, Castro paid his first visit to the USA where his story was romanticized by the media. He was supposed to have a meeting with Eisenhower; however, the President refused to have a meeting with him, and went to the golf court. He was accommodated by Nixon, who was the vice president at that time. During the meeting, he refused to accept USA financial support because he believed that it would continue the USA influence in Cuba. After Castro visited the USA, the relation between the USA and Cuba began to decline (Rich 2003, 419). One month after the visit, Fidel Castro began his reforms. He nationalized Cuban lands, cattle ranch, bank, railroads, oil, and other utilities, which were once owned by the USA (Perez 2011, p. 230-231).

Internal assessment for International bacculaureate Essay

Internal assessment for International bacculaureate - Essay Example Megginson, William L., Robert C. Nash, and Matthias Randenborgh. "The financial and operating performance of newly privatized firms: An international empirical analysis." The Journal of Finance 49.2 (2012): 403-452. Introduction General Introduction Organizations within the contemporary environment continue to struggle in order to survive and grow amidst the increased competition. The reductions in the barriers to entrants have been a major factor contributing to increased competition (Altman 591). Classical firms continue to have significant problems in respect to competition despite the fact that they may be commanding high market share. As a result, such firms need to establish an evaluation and analysis into its performance in order to ascertain whether they can continue to survive or grow within the contemporary business environment. Hafeera Contracting Company is one such organization that has existed since 1968. The following is an analysis of Hafeera’s financial and ov erall performance in a bid to establish its survival and growth within the contemporary business environment. ... has been involved in undertaking specific projects that correspond to government industry, housing, road works, building, sewage and drainage, heavy civil construction, and construction of water supply networks amongst others. Indeed, Hafeera Contracting Company has been involved in many activities, which provide further room for both survival and growth within the construction industry. Findings The main question that this assessment and analysis aim at answering is â€Å"Can Hafeera Group continues to survive based on the current performance status?† In order to find the answers to this question, the assessment and analysis employed the use of financial data (Altman 591). The following are some of the findings from the assessments and analyses of financial data for Hafeera Contracting Company. The findings are categorized into the current financial information as well as the comparison of past financial information (2007 to 2010). It is important to understand a firm on the basis of its past performance whilst comparing with the present for the purposes of forecasting into the future. Latest Financial Performance Table 1: Latest Financial Performance 31 December 2011 Total Income $ 3,984,950 Total Expenses $ 3,059,556 Net Profit for the year $ 925,394 Total Equity $ 3,310,348 The above table shows or indicates the latest financial performance of information of the client. These data are useful in understanding the current performance of the firm hence provides a room or an opportunity of forecasting and making inferences about the future (Chadwell-Hatfield 101). The financial information provided in Table 1 can be used to generate various financial ratios, which may provide an understanding of the status and performance of Hafeera Contracting Company thus enhance in

Strategic management and marketing for the luxury brand--BVLGARI Essay

Strategic management and marketing for the luxury brand--BVLGARI - Essay Example Bvlgari is now considered to be Italy’s â€Å"best known luxury brand† (Foulkes 2007, p.1). To capitalise on this positive brand identity, the company will be introducing a line of wedding gowns and high heels into the market. This report highlights an introduction of a new product into Bvulgari’s established market, offering a comprehensive analysis of external market factors that pose opportunities or threats to Bvlgari, micro-level considerations that could potentially impact success in the new product line launch, and an overview of the viability of the market to sustain the new product line. Between 2007 and 2009, the luxury good market experienced financial problems as a result of the global recession (Euromonitor 2011). However, the luxury market in Europe is in a recovery stage and BRIC nations are demanding more luxury products. On a global basis, demand for luxury products continues to escalate. In 2000, the global luxury market that includes cosmetics, jewellery, handbags and fragrances is estimated to be worth $170 billion USD (York University 2001). In 2012, China became the number one market for consumption of luxury products, overtaking all other global markets (Inocencio 2013). China has surpassed even Germany, Italy, the United States and the UK in luxury goods consumption volume. It has further been estimated that the global luxury market will increase to a value of â‚ ¬880 billion between 2014 and 2024 (Zargani 2014). nation, surpassed all markets in the world as the largest consumer of luxury products (Inocencio 2013), inclusive of Japan, Russia, Germany, Italy, the United Kingdom, the United States and Brazil. There is ample growth in luxury consumption and luxury marketer profitability as a result of developing economies in Asian nations. In the year 2014, it is expected that the global luxury sector will grow to a value of 880 billion Euros over the next 10 years (Zargani 2014). Hence, this is a lucrative global market with

Scientific Realism & Anti-realism Assignment Example | Topics and Well Written Essays - 1750 words

Scientific Realism & Anti-realism - Assignment Example The â€Å"no miracles argument† is an argument for realism that states that there are unobservable â€Å"entities† in the world that can be used to influence the observable world. Just because one cannot observe everything does not mean that it does not exist. What happens in the observable world proves the existence and can allow one to predict the behavior of the unobservable. A theory is â€Å"empirically successful† if it has to be shown to make â€Å"excellent predictions about the behavior of objects in the observable world†. Inherently unobservable phenomena, such as the changes an electron undergoes in an atom when moving from a high to lower energy-state in lasers, which scientists then apply to technology that is functionally based on the repeatable results of the experiments define theories that are empirically successful. Realists use the theory to confirm the existence of the unobservable world and to make predictions about its reliability, proposing that if a theory is empirically successful that it must be true based on the results of repeated observations. Anti-realists refer to a number of theories based on empirically successful experimentation that science has later proven false. The anti-realist position is that as science becomes more sophisticated and uncovers ways to observe more of the world, more of the unknown becomes known. The â€Å"no clear difference† argument proposes that there is no clear delineation between the observable and unobservable world. Another argument for realism, this argument indicates that if the line cannot be drawn so that it is easily understood, that more is observable than the anti-realists readily assume.

Ethics and Governance Essay Example | Topics and Well Written Essays - 1500 words - 6

Ethics and Governance - Essay Example Kantian’s approach to ethics is relevant to business and management because it focuses on the maxim of the action. To Kant’s thinking, business stands to gain when it focuses its maxim on securing goodwill. Paying bribe does not add to the goodwill of business although the practice may be universal. â€Å"A business manager who accepts Kantian morality would ask for any given decision, does the principle on which the decision is based pass the test of the categorical imperative, that is, can it be willed universally without contradiction? If it can, then the decision would be morally permissible. If it cannot, the action is morally forbidden† (Bowie, Norman E; 2002, p5).A robust business house following Kant’s approach to ethics weighs its every action in ways that secures business without depending on malpractices such as payment of bribes. Such business houses are strongly self-reliant and prefer ethically sound actions irrespective of the outcome. In Ka ntian ideology, there is no means. There is only the end. Actions culminate as the end.Kantian approach is flexible. It does not treat other approaches as untouchables. However, it upholds high values and sets standards that weigh individual actions by the acceptance or rejection of others universally. In commercial terms, â€Å"Ethical capital reflects the additional revenues created by corporate moral agency, such as a price premium paid by an ethical consumer for an environmentally friendly product†.

The Strengths, Weaknesses and Uses of the Economic Value Added (EVA) Essay

The Strengths, Weaknesses and Uses of the Economic Value Added (EVA) Mode - Essay Example Economic Value Added (EVA) EVA is a relatively new technique of measuring financial performance of companies. This tool relies on three basic elements which are Net Operating Income adjusted after taxes (NOPAT), the investment amount and the weighted average cost of capital (Hansen & Mowen, 1997). EVA can be calculated as: EVA = After tax operating income – (investment in assets x weighted average cost of capital) The amount calculated under EVA is an absolute dollar amount. The amount calculated can be either have a positive value or can have negative value. The positive value shows that the organization has remained successful in generating more Net Operating Income After Tax (NOPAT), well covering the cost of investments that were employed. On the other hand, negative values shows organization’s failure in recovering the costs of investment as its cost of investments exceeded the Net Operating Income After Tax (NOPAT). Obtaining the positive value of EVA is the core objective of any organization. Strengths of EVA EVA has significant strengths which have increased its popularity tremendously. In the following discussion, more attention will paid on different aspects of EVA. 1. Better Measure EVA has turned out to be a better measure in terms of performance measurement of different stakeholders in organizations. ... In order to achieve personal and individual goals, the broad objectives and goals of organization are put aside courtesy this technique. However, EVA is the technique which measures the performance of financial managers in an absolute dollar amount. This technique explains the absolute value added by the financial managers to their divisions and the organization as a whole. So the financial managers try to increase the EVA in comparison with other financial mangers to exceed the amount of EVA as much as they can, this effort causes benefits to financial managers, their divisions and the overall organization. 2. Absolute Measure of Performance One of the most promising strengths of EVA is that is explains the amount of value added by the financial managers in an absolute dollar amount. Other techniques such ROI measures performance in relative percentage terms which is not a true reflection of the performance of financial managers. The reason behind the failure of relative measures is that they do not take into account the size of amounts on which they are based. There are likelihoods that a financial manager earning too much with a huge amount of investments behind him/her, yet he/she end with lower ROI as compared to that financial manager who is responsible for lower magnitude of amounts. As a result, the true performance cannot be reflected if relative measures are used. On the other hand, EVA exactly explains the specific dollar amount that is added to the organization as a whole. 3. Similar to NPV This technique is very much similar to that of Net Present Value technique. In finance, the NPV technique has the importance of

Strategic Management in Steel Industry Dissertation

Strategic Management in Steel Industry - Dissertation Example With this understanding, it might appear that the evident differences in economic and social policies among OECD governments are explicable as rational responses to the real world, based on democratic political choice, free of overriding concerns to liberalize national economies". In order to run the steel making and the steel selling business profitably-which often is set up at massive deployment of capital and manpower requiring setting up of large scale steel plants ;it has become virtually necessary to plan the operations and policy along the strategic lines. In fact strategic management gives a way of approaching the various issues in any business along scientific lines so that business objectives are attained in an orderly and timely manner. Some businesses are simple, involving easily understood stages involved right from production to marketing to financial aspects; whilst others -like steel industry- are so very complex that one section of business may not even appreciate the complexities involved in the operations of another section of the business, not to talk about keeping in sync with policy thrusts and strategic orientations of the two sections. Strategic management provides answers readily in such complex business situations by offering a model of identifying the strategic areas where attention and focus is required. This paper approaches the issue of strategic management in steel industry through a thorough literature review exploring the concept of strategic management as it is theorized and practiced in steel industry and attempts to find an empirical support for the same through questionnaire survey of policy making and decision making executives in the randomly chosen steel makers.... From the dissertation, it is clear that the concentration witnessed among the steel industry’s customers is still more marked among its suppliers. In the seaborne iron ore trade, three companies control more than 70 percent of the world market. In coking coal, five suppliers control nearly 60 percent of all exports. The merged entity will immediately achieve industry leadership with a production capacity of approximately 130 million tons a year and around 10 percent of world steel output. The new group will have leading positions in the high-end segments of North America and Western Europe with low-cost production in high-growth, developing economies. In conclusion, Mittal Steel has low-cost operations in the developing economies of Central and Eastern Europe, Asia and Africa; Arcelor has low-cost slab manufacturing in Brazil as well as other South American facilities. For its part, Mittal Steel will contribute sizeable captive supplies of raw materials – enabling the combined entity to have strong positions at every step of the value chain. Mittal Steel is approximately 50 percent self-sufficient in iron ore and coal and in 2004 produced more direct reduced iron (DRI) and coke than it consumed. It intends to invest in lifting raw material production, particularly at its major mines in the Ukraine and Liberia. The combination of Mittal Steel and Arcelor will result in a steelmaker more than three times larger than its nearest competitor and with every chance of reaching a production capacity of between 150 million tons and 200 million tons within ten years.

Determining the Status of an Independent Contractor and Taxes Essay

Determining the Status of an Independent Contractor and Taxes - Essay Example Avoiding taxes is not the primary goal of an independent contractor but they know if they are classified as employees they suffer some consequences. Some of the consequences one suffers are that they might not be hired by the hiring firm since they these firms will be forced to pay additional expenses of treating them as employees. The aims of the firms to maximise their profit and to ensure they achieve their goals, they have to ensure that they minimise their operational expenses. For this case, if an independent contractor is classified as an employee he will never be hired by the hiring firms. (Fishman, 2006) The other reason as to why the independent contractors do not need to be classified as employees is because they will add additional tax burden to themselves by being subjected to tax. Their pay will be deducted, something they would not be experiencing if they were independent contractor. (Fishman, 2006) According to Fishman (1997), the U.S Bureau of Labour Statistics shows that in U.S.A alone, there are eight million independent contractors and in the next ten years, this number is expected to double. The use of independent contractors is beneficial companies that cannot afford to hire permanent employees especially small and medium ones. This is especially so for those companies that can not be able to employ a permanent employee for specialized function. For instance, a company engaged in international commerce can hire an attorney who has specialized in international trade as an independent contractor to provide international legal advice. This staffing approach is more affordable than employee a permanent employee and for this case due to the fact that this attorney's salary will not be taxed, then it does not mean he want to avoid paying the tax. 1 Permanent employees have been given a great deal of job security by European laws and because of these laws, the economic uncertainty has forced employers to use short-term contracts than using permanent employment. These short-term contracts are the use of independent contract and statistics shows that this tread is on the increase. In every five employees in France, one is on part-time contract; 30 percent of workforce in Britain is on temporary employment; in Spain, for every ten jobs created, seven of them are on temporary basis; and the ban on private temporary employment agencies has been lifted in Germany. These statistics shows that there is great rise in the use of independent contractors in many European countries. The use of independent contractors has become popular since it reduces costs and legal requirements imposed on termination or lay off of employment in Europe. Due to the fact that the temporary employees hired by companies under temporary employment does not mea n that they are avoiding paying taxes since they employment is being dictated by circumstances. (Templeman, 1996) Independent contractors results in cost savings which include: reduced book keeping and payroll preparations costs, avoidance of taxes, reduced fringe benefits, elimination of worker's compensation benefits, elimination of overtime pay, decreased administrative burdens and reduction in capital and maintenance costs if the independent contractors provides their own tools and equipment. (Bureau of National Affairs, 1994; Stalnaker, 1993). Even though independent contr

Harlem Renaissance Essay Example for Free

Harlem Renaissance Essay I. Introduction The Atlantic slave trade caused the large movement of Africans across different parts of the world largely in the Americas, Europe, and Asia. This African Diaspora brought about eleven million of black people in the New World (P. Larson. â€Å"Reconsidering Trauma, Identity, and the African Diaspora: Enslavement and Historical Memory in Nineteenth-Century Highland Madagascar†). The descendants of those that were brought in the Americas, chiefly those in the United States working as slaves in the south, later experienced another diaspora: moving from the south to the north to escape the hardships brought about by intense racial discrimination. A large portion had settled in the city of Harlem, New York City which opened up a surge of excellent creative works done by blacks and became in vogue for some time. This period came to be known as the Harlem Renaissance, also variously known as the New Negro Movement, or the New Negro Renaissance. This was a period of outstanding creativity expressed in visual arts, writings, and music during this large movement of black population, wherein the African-American Diaspora has moved into larger cities. It changed the character of black American artworks, from conventional imitations of white artists to sophisticated explorations and expressions of black life and culture that revealed and stimulated a new confidence and racial pride. The movement centered in the vast black ghetto of Harlem, in New York City, thus the name of the movement. Harlem became the place of gathering for aspiring black artists, writers, and musicians, sharing their experiences and providing mutual encouragement for one another. The term Harlem â€Å"Renaissance† is a misnomer. If measured by quantity alone, it was more a birth than a â€Å"rebirth†, for never before had so many black Americans produced so much literary, artistic, and scholarly material at the same time. If measured by quality, however, it was actually a continuum, the quickening of a lively stream fed earlier by the important works of poet Paul Laurence Dunbar, novelist and short story writer Charles W. Chestnutt, poet and novelist Hames Weldon Johnson and the essays of Du Bois. The Harlem Renaissance created a significant breakthrough, wherein it marked the first time wherein literary and artistic works done by African Americans gained in national attention and interest. Doors of opportunities were opened for such works to be publicized and presented to the general public, which before were not possible. Although its main achievement is found primarily in literature, it also bore the great African-American works in politics and other creative mediums such as visual art, music, and theater that explored different aspects of black American life (R. Twombly. â€Å"Harlem Renaissance†). II. Background and Discussion During the early part of the 1900s, Black Nationalism and racial consciousness began to emerge particularly during the 1920’s. One key factor that helped this development was the surfacing of the black middle class, which in turn were brought about by the increasing number of educated blacks who had found employment opportunities and a certain degree of economic advancement after the American Civil War (â€Å"Harlem Renaissance†). During World War I, thousands of black people left the depressed rural South for jobs in northern defense plants. Known as the Great Migration, more African Americans established themselves in cities such as Harlem, in New York City. They were socially conscious, and became a center of political and cultural development of the black Americans. This population created racial tensions over housings and employment that resulted in increased black militancy about rights, including vigorous agitation by the national Association for the Advancement of colored People (NAACP) and other civil rights organizations. Foremost for this black movement’s agenda, which was expressed in various mediums, is to clamor for racial equality. Championing the cause were black intellectuals W.E. B. Du Bois and Alain Locke. White responses to these developments were both negative and positive. The Ku Klux Klan and other white supremacist groups reached their peak of northern popularity during the 1920’s. At the same time unprecedented white interest in racial maters created a large audience for black authors who began to settle in the district of New York City known as Harlem. Like other black ghettoes, Harlem was a new, untapped source of themes and materials, which partially accounts for its popularity among artists and intellectuals, but unlike other ghettoes it was a newly constructed, fashionable, residential section. Functioning as a kind of black mecca, Harlem’s excellent housing, its prestige, excitement, and cosmopolitan flavor, attracted a black middle class from which sprang its artistic and literary set. A. General Characteristics Not all works during this movement is militant in nature. However, participants and contributors in the Renaissance were intensely race-conscious, proud of their heritage of being black, and much in love with their community. Most of them, some more subtly than others, criticized racial exploitation. Partly as a tribute to their achievements and partly as a reflection of their racial self-awareness, the Renaissance members were collectively called â€Å"New Negroes†, also indicating that they had replaced the (largely white created) literary image of the comic, pathetic plantation Negro with the proud, busy, independent black man of the northern city. The â€Å"New Negroes† were generally integrationists, optimistically interpreting their own individual successes as harbingers of improvement in race relations. Acceptance from Harpers, Harcourt, Brace, Viking, Boni Livewright, Knopf, and other front-line publishers began coming through quick succession, boosting more optimism among African-American contributors of the Harlem Renaissance. Rather than depicting a new movement of style, the art during the Harlem Renaissance is united by their common aspiration of depicting and expressing in artistic form the African-American psyche and life. Common characteristics can be found among such works such as the birth of racial pride among black Americans. This called for tracing its roots and origin by taking attention and interest to the life of blacks primarily in Africa and South America. Also, such strong social and racial consciousness brought a strong desire for equality in the American society, both socially and politically. But one of the most common and significant characteristic of the Harlem Renaissance was the abundant production of a variety of creative expressions. Diversity was the main distinctive quality, brought about by an experimental spirit of the movement such as in music which ranged from blues, jazz, to orchestra music. B. Primary Artist of the Harlem Renaissance:   Aaron Douglas (1898-1979) The celebrated artist of the Harlem Renaissance was Aaron Douglas, who chose to depict the New Negro Movement through African images which bore â€Å"primitive† techniques: paintings in geometric shapes, flat, and rugged edges. In his works, Douglas wanted the viewers to know and recognize the African-American identity. As such, Aaron Douglas is often referred to as the â€Å"Father of African American Art†. Born in Topeka, Kansas, Douglas was able to finish his B.A degree. Moving to Harlem in 1925, Aaron immediately set to work, creating illustrations for prominent magazines of the Harlem Renaissance. Douglas was influenced in his modernist style under the tutelage of German artist Winold Reiss, a style which marked most of his celebrated works and incorporating both African and Egyptian strokes of illustration and design. It was Reis who encouraged Douglas to take African design into his works which became his trademark (â€Å"The Harlem Renaissance: Aaron Douglas†). Such manner of African â€Å"primitive† style caught the attention of the main proponents of the Harlem Renaissance, namely W.E.B. Dubois and Alain Locke who found Douglas’ works as an appropriate embodiment of the African-American heritage. They were encouraging young artists to depict their African legacy through their artworks. Even though at a time when DuBois stilled considered Henry Tanner more important, Douglas has fairly established a reputation as the leading visual artist of his time. Harlem Renaissance painters are united by the desire to promote and portray the life and condition of blacks, particularly African-Americans. However, at this point the similarity ends. Harlem Renaissance artworks are as varied in style as the artists themselves. Although like Douglas, most painters of this period received formal trainings and as such, their style and strokes are no different from other non-black artists. What only separate the artists of the Harlem Renaissance from others are their themes and subjects. III. Conclusion A. Ending and Significance As a conclusion, one of the strengths of the Harlem Renaissance was also a serious weakness. Because they were dependent on white patrons and viewers for popularity, black artists were not fully free to explore the mechanisms that perpetrated racial injustice, nor could they propose solutions unacceptable to whites. Furthermore, when the Great Depression dominated American life during the 1930’s, the whites, who had been the bulk of the Renaissance audience, concentrated on economics and politics, oblivious to black American suffering. American arts and letters took up new themes, and although the best artists continued to work, they ultimately lost popularity. The Great Depression drove many black artists to scatter; and were mostly forced to leave New York or to take other jobs to tide them over the hard times. Creativity was drowned by necessity. Nevertheless, despite its many weaknesses and disadvantages, the Harlem Renaissance was a milestone in black American culture and the basis for later achievements.

Assessment of Students’ Satisfaction on the Restructured Essay Example for Free

Assessment of Students’ Satisfaction on the Restructured Essay 1.0 Introduction At the University of Ghana there are reports that rooms originally built to take two students, are now officially allocated to five students (after minor modifications), but unofficially occupied by as many as eight or nine – to the knowledge of the university authorities! Apart from the obvious hygiene and health hazards posed, what kind of ambience does this provide for study after classes? All of which have brought most African universities to a state of serious deterioration. This is evident not only to those who work or study in those universities but to even the most casual visitor. – (Association of African Universities, 2004) Housing is a basic human need in all societies and fundamental right of every individual. In advanced countries, housing is more accessible to all categories of people including the poor and the needy as a result of subsidies from the government. The situation is not the same in developing countries of the world. In Ghana, for example, accessibility to housing by the poor is quite a difficult situation which is worsened by the harsh economic conditions and poor enabling environment. Likewise, accessing housing facilities by Ghanaian students at the university is no exception, especially where such university happens to be the dream destination of most Ghanaians entering into tertiary institution. In tertiary institutions worldwide, the provision of accommodation to the students’ population takes different models. This includes; non-residential, where students source for their own accommodation. Residential, where the university houses all its students and dual-residential, where the university houses its student population for a period of time only, probably the first and final year, while the students during the remaining period source for their own accommodations. The experiences of students in tertiary institutions in sourcing and securing for their own accommodation around university communities are likely to be interesting and significant. However, it is worth noting that, University of Ghana, the nation’s premier university has gone through a series of development when it comes to how to accommodate its students, both undergraduates and postgraduates. 1.1 Research problem University of Ghana has undergone a series of reforms when it comes to the residential policy for its students. The ever increasing number of enrollees in the institution is what defines this restructuring of the policy governing students’ accommodation over time. In the past two years what the incumbent vice chancellor of the university term as â€Å"Decongestion† has taken place in anticipation to the fulfillment of the university achieving efficiency in its field of operation. The drive has also been fast tracked by his informal goal that the university should achieve a world-class status. Effective August, 2011, the university effectively implemented its decongestion policy allocating rooms to a maximum of three (3) students and four (4) students in the main halls and annexes respectively. This was done to address the problems of overcrowding that resulted in adverse effects of poor sanitation, pressure on residential utilities such as reading rooms and libraries, kitchen and washrooms, among other poor conditions for effective personal studies by students. Residential facilities have been increased to make the policy successful. Even though, the problem of inadequate accommodation for students is not entirely solved, the restructuring have been effective since its implementation, and it is worth investigating the effects of the new policy, whether it has achieved its goal or it is towards achieving its intended goal or otherwise. 1.2 Purpose of the study The main reason why this research is being conducted is to evaluate the satisfaction of students with the current students’ residential policy and its effects on their studies. 1.3 Objectives of the study Specific objectives of the study are as follows: 1. To assess students perception of sanitation in the halls/hostels now. 2. To assess students perception of security in the halls/hostels now. 3. To investigate students accessibility to some basic hall/hostel utilities. 1.4 Research Questions 1. What is students’ perception of sanitation in the halls/hostels now? 2. What is students’ perception of security and comfort in the halls/hostels now? 3. What is the accessibility status of students to basic halls/hostels utilities now? 1.5 Relevance of the study As a top university in Ghana and Africa and one which is striving to attain a world class status, adequate facilities should be provided and already existing ones improved, especially standards of services and facilities which include providing conducive on-campus student housing facility. The above research provides the grounding for this study and highlights the areas of new knowledge which are needed; to focus upon students’ satisfaction of residential facilities in University of Ghana. A key question is what is the level of students’ satisfaction with regards to the students housing facility (SHF) in the context of University of Ghana? The study contributes to a better understanding of SRS of UG. The results offer valuable feedback to the university authorities, facility managers and university hostel/hall administrators in terms of the present standards or the need for further improvement of the SHF through effective designs and management. The results will help to formulate guidelines in terms of allocation of rooms to students, maintenance and for future developments of student housing ensuring that the university is able to provide adequate and contemporary on-campus SHF. 2.0 Literature Review 2.1 Introduction This section reviews existing literature on the student residential facilities. It is mainly made up of previous studies, journals, articles, periodicals amongst other sources. They form the secondary source of data to the study. 2.2 The Concept of Student Residential Facility Student housing has long been regarded as an essential component of the facilities provided by the higher learning institutions in assisting students to expand their intellectual capabilities. According to Hassanain (2008), well planned student housing facilities (SHF) promote desirable educational outcomes and help to achieve the broader objectives such as social cohesion and responsible citizenship. An earlier study by Zahran (1972) reveals that a good student housing promotes interactions between roommates of different backgrounds and specializations; and thus broadens the students’ knowledge. Amole (2005) argues that facilities such as study areas or meeting places for academic discussions and social gatherings provided in the student housing will encourage informal intellectual activities outside the students’ own faculties. Price et al. (2003) related student interpersonal growth to adequate facilities and Fay (1981) highlighted the importance of students’ satisfaction in the SHF as a strategy to enhance student development. Despite the importance of SHF, little literature is available to evaluate student opinions of their housing facilities. Most studies on post-occupancy evaluation focus on family housing either public or private residences, investigating the interaction between owner-occupiers or tenants and their housing settings. Majority of these studies utilized the concept of housing satisfaction when evaluating the interactions between the residents and their physical environment (Amole, 2009b). Arguing that housing satisfaction can lead towards improving individual’s quality of life, Salleh (2008) investigates dwelling, housing services and neighbourhood factors that influence the residents of private low-cost housing in Malaysia. The study revealed that the residents are more satisfied with their dwelling units and housing services if compared to their neighbourhood facilities. Elsinga and Hoekstra (2005) study housing satisfaction among European communities and find out that except in Austria, homeowners are more satisfied than the tenants because homeownership provides security, freedom and financial benefits. In contrast, James (2008) analyses the influence of age and type of ownership on the level of satisfaction and establishes that tenant satisfaction increases with the age at a much faster rate than the type of homeownership. However, student housing and family housing are not the same. Student housing comprises of basic bedroom units with other shared facilities such as bathrooms, toilets, laundry, kitchens, common lounges and cafeterias located either per floor level, per block or for the whole student housing accommodation (Amole, 2009a). On the contrary, the basic unit for family housing is a house which includes bedrooms, bathrooms, toilets and a living area all as part of the unit with other housing facilities such as playground, shops and school at the neighbourhood (Parkes et al., 2002). In addition, student housing offers limited security of ownership and freedom if compared to family housing. Therefore, the above findings may not apply in the context of student housing. Studies on residential satisfaction (RS) from the student perspective are mostly focused on factors affecting RS; such as reasons for students to maintain their previous residence (Cleave, 1996) and predictors of student residential satisfaction (SRS) (Foubert et al., 1998; Khozaei et al., 2010b). There are also studies on student housing with narrower scopes such as the effects of floor height on over-crowding (Kaya and Erkip, 2001); students’ perceptions on indoor comfort (Dahlan et al., 2009); students’ sense of attachment with a particular student housing (Khozaei et al., 2010a); coping strategies for students staying in student housing (Amole, 2005) and the relationship between satisfaction and levels of environment (Amole, 2009b). These studies offer little guidance as to whether the students are satisfied with SHF provided. Among the limited studies on SRS are studies by Amole (2007, 2009a), Hassanain (2008) and Radder and Han (2009). Amole (2007, 2009a) investigates RS among students in Nigeria and the findings indicated a low satisfaction with the SHF provided. Radder and Han (2009) researched student satisfaction levels in South Africa and the findings indicated again a level of dissatisfaction with campus residences. Alternatively, Hassanain (2008) found that students in Saudi Arabia indicated a level of satisfaction with the SHF provided. However, the studies were conducted in countries where the culture and climate are different from that experienced in the Southeast Asia region, which is likely to affect the perceived environment of the built environment. Therefore, the results of the studies may not be applicable to the study context. 2.3 Evolution of the accommodation structure Originally, halls in the university were built to accommodate two students per room. This provision was adequate for students because not many people sought for higher education. However, as the population of Ghana increased and the need to seek higher education became prominent in the country, the number students enrolled each academic year increased rapidly as well. Residential facilities were increased and expanded to accommodate the ever increasing number of student intake which demanded restructuring of student residential policy given the limited resources the university had. In the midst of the reforms, beyond the expansion and modification of the original rooms to accommodate two persons at a time, the number increased to five (5) in a room officially, both in the main halls and the annexes. The continuous increase in the student intake amidst the unexpanded residential facilities meant that, not all students could be accommodated on campus, therefore, private hostels began to spring up to absorb the excess students who could not secure accommodation on campus. The private hostels motivation to make profit meant that they charge high prices which were unbearable by many students. This brought about one of the prominent terms that everyone who has passed through the four walls of the University of Ghana is popular with â€Å"Perching†. 2.4 The issue of â€Å"Perching† The word connotes students who illegally share residential facilities with official occupants of a room. This resulted in overcrowding in the halls, putting extreme pressure on washrooms, reading rooms, hall libraries, dry lines, among other facilities that were originally constructed for two people. This was happening who many reforms were going on. The two most popular reforms were the â€Å"in-out-out-in† and the â€Å"in-out-out-out† policies. The former meant that, all first year students were qualified for accommodation on campus, this qualification did not mean automatic allocation of rooms to freshmen but allocation was subject balloting for a â€Å"YES† or â€Å"NO† and second and third year students were to look for their own accommodation. Under this policy, final year students like first year students also qualified to be accommodated on campus; it is however, worth noting that, even for the final year students, because of the limited number of rooms available, allocation of rooms was also done via balloting a yes or no by students. The latter policy, in-out-out-out raised a lot of eyebrows as it meant that only first year students were offered accommodation on campus. And for this policy allocation to level 100 students was automatic and assured. With this policy in place the problem of â€Å"perching† worsened. The official number of occupants in a room almost doubled for almost all the halls of residence. The adverse effects of poor situation created a lot of problems; poor sanitation, insecurity, discomfort, which had direct impact on students’ health, hygiene, and efficiency. 2.5 The current residential policy â€Å"The University of Ghana Hostels with a capacity of 26000 beds, which was to be built at the University of Ghana, Legon, with partnership between the university and six banks was a dream come alive as long as finding a solution to the perennial problem of accommodation in our public universities is concerned† this was an assertion made by Professor C. N. B. Tagoe, Vice Chancellor of the university of Ghana (GhanaWeb, 2008). From the above statement I would to acknowledge the â€Å"Contingency theory† one of the prominent schools under the Open Systems perspective of Organizations. This theory as a branch of systems design emphasizes that design decisions are dependent on environmental conditions. Contingency theory is guided by the general orienting hypothesis that organizations whose internal features match the demands of their environments will achieve the best adaptation. Lawrence and Lorsch (1967), who coined the label â€Å"contingency theory†, argue that different environments place differing requirements on organizations. In a recent review article, Lawrence (1993) provides a partial list of factors that one or another theorist has considered important. They include size or scale, technology, geography, uncertainty, individual predispositions of participants, resource dependency, national or cultural differences, scope and organizational life cycle. With concentration on the resource dependency factor, it is indicative that, the adaptation and realization of the said solution was heavily contingent on the provision of financial resources by the six banks which are external to the organization. As the resources from the external environment was provided by the six banks, the expansion of the residential facilities have been a reality indeed, making it possible to establish four different hostels which accommodates about 7, 120 students. It is a combination of these factors that made it possible for the decongestion exercise in the five traditional halls feasible. Currently, some of the hostels have been restructured into halls and run as the traditional halls. The standard rooms accommodate four (4) persons as the annexes do. With other stringent measures put in place to control â€Å"perching† it is believed that, the purpose for which this restructuring was done is being worked towards. It must be stated categorically that, the main reason for this exercise is to improve students’ efficiency in the university. 2.6 Halls of Residence/Hostels The University believes in community living as an essential part of student life. It is therefore primarily residential, providing accommodation in Halls of Residence for both undergraduate and post-graduate students as well as flats and guest rooms for senior members and guests. There are five halls of residence (available to all students) and several Hostels. The present Halls and Hostels are as follows: Each Hall consists of junior members (students) and senior members (academic and senior administrative and professional staff), and is managed by a Council comprising members elected by persons belonging to the Hall. The Master (or Warden in the case of Volta Hall) is the Head of the Hall. Each Hall has Junior and Senior Common Rooms for students and Faculty, respectively. A tutorial system offers an opportunity for counseling students and ensuring their welfare at both academic and social levels. Students maintain interaction with each other and the wider community through recogni zed clubs and societies. Each Hall has a kitchen and a dining hall to cater for students feeding. Chapels and a mosque are also available for use by various religious denominations. A Chaplaincy Board co-ordinate the activities of religious groups. Social life on the campus is organised mainly by the Students Representative Council and the Junior Common Room Committees which provide various kinds of social programmes. LEGON HALL: Legon Hall was the first to be built on the permanent site of the University of Ghana at Legon and is, therefore, the Premier Hall of the University. Its foundation tablet was laid during the Michaelmas Term of 1951 and, in September 1952, the first undergraduates were accepted into residence. On Trinity Sunday, 31st May 1953, the first service was held in the Chapel and the first meal served in the Dining Hall. From these events, the Hall took Trinity Sunday every year as its birthday, celebrated by a common Feast for both its Junior and Senior Members. The Halls motto, Cui Datum (To whom much is given†¦), was selected from St. Lukes Gospel, in recognition of the special responsibility attached to the Halls seniority. Senior Members of the University may be assigned as Fellows of the Hall by the Vice Chancellor and they usually keep their Fellowship for as long as they remain with the University. Persons of academic distinction outside the University may be elected as Honorary Fellows at a General Meeting of Fellows. The rest of the membership of the Hall is made up of persons in statu pupillari. The governing body of the Hall is the Hall Council, members of which are Fellows of the Hall. The principal Hall Officers are: The Master, the Vice-Master, the President of the Senior Common Room, the Senior Tutor, and the Hall Bursar. AKUAFO HALL: Akuafo Hall was established with the appointment of Professor D.A. Taylor, a Master-designate and a Hall Council in 1953. The Hall Council in 1954 decided to name the Hall Akuafo to commemorate the generous gesture of the farmers of Ghana in giving money for the foundation of the University College. A crest which depicts a cocoa tree, an open book and a drum, designed by Professor W.J. McCallien, and a motto, laboremus et sapiamus, suggested by Professor L.H. Ofosu-Appiah, were adopted by the Council. A commemorative plaque with a Latin inscription composed by Professor L.H. Ofosu-Appiah was set up to show the gratitude of the Hall to the farmers of the country and to the British Government who gave the University College funds for the building of the Hall. The Hall was officially opened on 17 February, 1956, but the first students, numbering 131, came into residence on the 5th October, 1955. The Hall has its own statutes governing the election of officers and the administration of its affairs. Once a year, the Master has to convene a meeting of the Fellows, who form the governing body, to receive his annual report. The Senior Common Room is open to all Fellows and their guests, and the Senior Combination Room to all senior members of the University. Senior Members may also invite students to the Combination Room. COMMONWEALTH HALL: The first batch of students was admitted into residence in Commonwealth Hall at the beginning of the 1956-1957 academic year. In the Lent Term of that academic year, Ghana attained its independence from Great Britain, and the Hall, hitherto known as the Third Hall, was officially christened Commonwealth Hall to commemorate Ghanas admission into the Commonwealth of Nations. The official opening of the Hall was performed in March, 1957. It is, so far, the only all-male Hall of Residence in the University. The motto of the Hall, Truth Stands, was taken from a quotation from Satyre by John Donne (1572-1631): On a huge hill, cragged, and steep, Truth stands and hee that will Reach her, about must, and about must goe This motto combines both the physical situation of the Hall (on a hillside overlooking most of the University and beyond) and the proper pursuit of a University education, the search for truth. It is the only Hall of Residence in the University which has a theatre and Amphitheatre for lectures and plays. The Coat of Arms of the Hall depicts the strength and unity of purpose of members of the Hall deriving from the bonds of association enjoyed by the individual members of the Hall. High Commissioners of the Commonwealth countries in Ghana are accorded Honorary Membership of the Hall. There is a Hall Council which administers the affairs of the Hall, assisted by the Tutorial Board and the Senior Common Room Committee. VOLTA HALL: Volta Hall started as the Fourth Hall in the 1959-60 academic year, on 16th November, 1960. The University College Council, on the recommendation of the Hall Council, named it Volta Hall. The Hall consists of the main hall originally designed to accommodate 82 students, and an annex with an original capacity for accommodating 198 students, the occupation of which began in January 1966. The motto of the Hall, chosen during the Halls tenth anniversary celebrations, is in the Akan language and it is: Akokobere Nso Nyim Adekyee. This means that the secret or knowledge of life and nature is a gift to women as it is to men. The Hall has a governing Body which comprises all the Fellows assigned to it and those elected by the assigned Fellows. The government of the Hall rests with this body which delegates some of its powers to a Hall Council. The Hall Council consists of ten members, including the Warden, the Deputy Warden, the Senior Tutor and the Bursar who are ex-officio members. The day-to-day administration of the Hall is carried out by the Warden with the help of the Senior Tutor, who deals with all students affairs, and the Bursar. MENSAH SARBAH HALL: Mensah Sarbah Hall, the fifth Hall of the University, stands in the southern part of the campus. The Hall consists of a main Hall built around a quadrangle and a number of Annexes standing to the north and east. The last two south annexes are attached to the Hall. Until October 1991, Mensah Sarbah was the only co-ed Hall of Residence in the University, which made it quite unique among the Halls. The governing body of the Hall is the Council, which is responsible to the full body of Fellows who form the Senate. Students affairs are handled by students own elected government headed by a President, while the general administration of the Hall is under the Master who is assisted by the Senior Tutor and Tutors on the one hand and the Bursar on the other. Other Hall Officers are the Chaplain, who is responsible fo r the Roman Catholic Chapel, the Prayer Room Warden, who is responsible for the Protestant Chapel, and the Librarian. Senior Common Room affairs are managed by an elected committee under the President of the Senior Common Room. The Hall is named after the famous Ghanaian jurist, writer and statesman, John Mensah Sarbah of Cape Coast. It has been customary for the Hall to celebrate the birthday anniversary of this great man every year. This anniversary is known as Sarbah Day and is highlighted by a dinner and a get-together. The Hall has a crest designed to bring out the principal features of Mensah Sarbahs life. It consists of three elements: a pair of scales, a stool with a book resting upon it, and a hill surmounted by a castle. The scale signifies the legal profession, the stool and the book symbolise culture while the hill and the castle are intended to depict the familiar landscape of Cape Coast with its many hills and forts. At the same time, the castle is intended to symbolise strength and honour. The Halls motto is: Knowledge, Honour, Service three words which aptly summarise the guiding principles of Mensah Sarbahs life. VALCO TRUST HOSTELS: The idea to build a graduate hostel was first nurtured w hen Legon Hall Annex C was prepared exclusively for graduate students of the Hall. The quest for a suitable accommodation for graduate students gained attention when Valco Trust Fund offered to finance the construction of a graduate hostel. As a further boost to this course, Legon Hall Annex C was converted into an Annex of the Hostel. The Valco Trust Hostel, donated to the University by the Valco Trust Fund to ease pressure on student accommodation, is a block of purpose-built, self-contained flats for 190 students. The Hostel, which was completed in June 1997, is the University’s first hostel for graduate students. A second block with similar facilities was opened in January 2006. Located behind Mensah Sarbah Hall on the southern part of the campus, the flats are arranged in single and double study bedrooms with en suite shower and toilet. There is a shared kitchen for every twelve rooms. Facilities in the hostels include common rooms, washrooms and a restaurant. INTERNATIONAL STUDENTS’ HOSTELS: The International Student’s Hostels are located on the southern part of the campus off the road to the Noguchi Memorial Institute for Medical Research. For a long time, it had been the dream of the University of Ghana to create and strengthen links with other universities in order to enhance the international student presence on campus. The first phase was commissioned in June 1999 and the second in January 2006. The Hostels are co-educational and each has 43 single rooms and 85 double rooms. In addition, there are facilities such as a well-fortified security system, kitchenettes and restaurants. REFERENCES Amole, D. (2005),â€Å"Coping strategies for living in student residential facilities in Nigeria†, Environment and Behaviour, Vol. 37, pp. 201-19. Amole, D. (2009b),â€Å"Residential satisfaction in students’ housing†, Journal of Environment Psychology, Vol. 29, pp. 76-85. Association of African Universities (2004), â€Å"Challenges Facing African Universities: Selected Issues†, African Studies Review (2004) Vol. 47, No. 1, 1-59 Dahlan, N., Jones, P., Alexander, D., Salleh, E. and Alias, J. (2009),â€Å"Evidence base prioritization of indoor comfort perceptions in Malaysian typical multi-storey hostels†, Building and Environment, pp. 2158-65. Elsinga, M. and Hoekstra, J. (2005),â€Å"Homeownership and housing satisfaction†, Journal of Housing and the Built Environment, Vol. 20, pp. 401-24. Fay, G. (1981),â€Å"A model for reviewing growth environments†, Journal of College and University Student Housing, Vol. 11 No. 1, pp. 46-7. Foubert, J.D., Tepper, R. and Morrison, D.R. (1998),â€Å"Predictors of student satisfaction in university residence halls†, Journal of College and University Student Housing, Vol. 21No. 1, pp. 41-6. Hassanain, M.A. (2008),â€Å"On the performance evaluation of sustainable student housing facilities†, Journal of Facilities Management, Vol. 6 No. 3, pp. 212-25. James, R.N. (2008), â€Å"Residential satisfaction of elderly tenants in apartment housing†, Social Indicators Research, Vol. 89, pp. 421-37. James, R.N. (2008), â€Å"Residential satisfaction of elderly tenants in apartment housing†, Social Indicators Research, Vol. 89, pp. 421-37. Kaya, N. and Erkip, F. (2001), â€Å"Satisfaction in a dormitory building: the effects of floor height on the perception of room size and crowding†, Environment Behavior, Vol. 33 No. 1, pp. 35-53. Khozaei, F., Hassan, A.S. and Khozaei, Z. (2010a), â€Å"Undergraduate students’ satisfaction with hostel and sense of attachment to place: case study of â€Å"universiti sains Malaysia†, American Journal of Engineering and Applied Sciences, Vol. 3 No. 3, pp. 516-20. Lawrence, Paul R. and Jay W. Lorsch. (1967)â€Å"Organization and environment† Boston; Harvard University, Division of Research, Graduate School of Business Administration. Parkes, A., Kearns, A. and Atkinson, R. (2002), â€Å"What makes people dissatisfied with their neighbourhoods?†, Urban Studies, Vol. 39 No. 13, pp. 2413-38. Price, I., Matzdorf, F., Smith, L. and Agahi, H. (2003),â€Å"The impact of facilities on student choice of university†, Facilities, Vol. 21 No. 10, pp. 212-22. Radder, L. and Han, X. (2009), â€Å"Service quality of on-campus student housing: a South African experience†, The International Business Economics Research Journal, Vol. 8 No. 11, pp. 107-19. Salleh, A.G. (2008),â€Å"Neighbourhood factors in private low-cost housing in Malaysia†, Habitat International, Vol. 32, pp. 485-93. www.ghanaweb.com, (Tuesday, 8th January, 2008) retrieved on 4th October, 2012. www.ug.edu.gh (2012) retrieved on 10th October, 2012 www.ug.edu.gh (2012) retrieved on 2nd November, 2012 www.ug.edu.gh (2012) retrieved on 5th November, 2012

Impact of the Financial Crisis on Banks and Banking

Impact of the Financial Crisis on Banks and Banking A bank is a financial intermediary that offers loans and deposits, and payment services. Its core activity is to provide loans to borrowers and to collect deposits from savers. Banks stock money, people need money; therefore, people need banks. Banks provide a home for peoples money, which is something accountants do not do; and banks also lend money, which accountants certainly do not do. There are three main kinds of banking: commercial banking, investment banking and central banking. Commercial banking is the traditional role of the banker as it relates to the taking of deposits and granting of loans. Commercial banking is split into two types: retail banks and wholesale banks. Retail banking relates to financial services provided to consumers and is usually small-scale in nature. Retail banks are often known as High Street banks, because they large branch networks, many of them comprising well over a thousand branches, usually located in the main shopping streets. Wholesale banks are found in the major financial centres of the world, eg London, New York, Frankfurt, Hongkong and Tokyo. They serve the major companies and have large-scale dealings with other banks throughout the world. The key different between these is that retail banks borrow from and lend to members of public and companies whilst wholesale banks deal with other banks and with governments (national and overseas). Investment banks are a US creation; and it could not be combined with commercial banks in one institution. The main role of investment banks is to help companies and governments raise funds in the capital market either through the issue of stock or debt (bonds). Typically, their activities cover the following areas: financial advisory; underwriting of securities issues; trading and investing in securities on behalf of the bank or for clients; asset management; other securities services. A central bank can generally be defined as a financial institution responsible for overseeing the monetary system for a nation, or a group of nations, with the goal of fostering economic growth without inflation. The core functions of central banks in any countries are: to manage monetary policy with the aim of achieving price stability; to prevent liquidity crises, situations of money market disorders and financial crises; and to ensure the smooth functioning of the payment system. Banks, as other financial intermediaries, play a pivotal role in the economy, channelling funds from units in surplus to units in deficit. Financial crisis: The financial crisis of 2007-2009 has been called the most serious financial crisis since the Great Depression by leading economists, with its global effects characterized by the failure if key businesses, declines in consumer wealth estimated in the trillions of U.S dollars, substantial financial commitments incurred by governments, and a significant decline in economic activity. The immediate cause or trigger of the crisis was the bursting of the United States housing bubble which peaked in approximately 2005-2006. High default rates on subprime and ARM (adjustable rate mortgages), began to increase quickly thereafter. An increase in loan incentives such as easy initial terms and a long-term trend of rising housing prices had encouraged borrowers to assume difficult mortgages in the belief they would be able to quickly refinance at more favourable terms. However, once interest rates began to rise and housing prices started to drop moderately in 2006-2007 in many parts of the U.S, r efinancing became more difficult. Defaults and foreclosure activity increased dramatically as easy initial terms expired, home prices failed to go up as anticipated, and ARM interest rates reset higher. In the years leading up to the start of the crisis in 2007, significant amounts of foreign money flowed into the U.S from fast-growing economies in Asia and oil-producing countries. This inflow of funds combined with low U.S interest rates from 2002-2004 contributed to easy credit conditions, which fuelled both housing and credit bubbles. Then, the global financial crisis really started to show its effects in middle of 2007 and into 2008. Around the .world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. Literature Review: The world economy is experiencing perhaps the most serious financial crisis since the breakdown of the Bretton Woods system in the early 1970s, in terms of both its scope and its effects. Its impact is much more global than that of the financial crisis we have seen in the past two or three decades. Today, global financial integration is much more pervasive, and the Asian countries have a much higher share of world trade and production. For some, the global nature of the current crisis has been unprecedented as several advanced economies have simultaneously witnessed declines in house and equity prices as well as difficulties in the credit market. The origin of financial crisis: As we know the current global financial crisis originated with losses on US subprime mortgage related securities, losses that first emerged with the slowing of the US housing market in the second half of 2006. The first origin of financial crisis is that the growth of housing bubble precipitated the beginning of financial crisis. Between 1997 and 2006, the price of the typical American house increase by 124. (Economist, 2007) During the two decades ending in 2001, the national median home price ranged from 2.9 to 3.1 times median household income. This ratio rose to 4.0 in 2006. (Steverman and Bogoslaw, 2008) This housing bubble resulted in quite a few homeowners refinancing their homes at lower interest rates, or financing consumer spending by taking out second mortgages secured by the appreciation. By September 2008, average US housing prices had declined by over 20% from their mid-2006 peak. (Economist, 2008) The other origin of financial crisis is easy credit, and a belief that h ouse prices would continue to appreciate, had encouraged many subprime borrowers to obtain adjustable rate mortgages. These mortgages enticed borrowers with a below market interest rate for some predetermined period, followed by market interest rates for the remainder of the mortgages term. Borrowers who could not make the higher payments once the initial grace period ended would try to refinance their mortgages. Refinancing became more difficult, once house prices began to decline in many parts of the USA. Borrowers who found themselves unable to escape higher monthly payments by refinancing began to default. The process of financial crisis: There is evidence that both government and competitive pressures to an increase in the amount of subprime lending during the years preceding the crisis. Major US investment banks and government sponsored enterprises like Fannie Mae and Freddie Mac played an important role in the expansion of higher-risk lending. In 1996,HUD, the department of Housing and Urban Development, gave Fannie Mae and Freddie Mac an explicit target: 42 per cent of their mortgage financing had to go to borrowers with incomes below the median income in their area.'(Schwartz, 2009, pp46) Between 2000 and 2005 Fannie Mae and Freddie Mac met those goals every year, and funded hundreds of billions of dollars worth of loans, many of them subprime and adjustable-rate loans made to borrowers who bought houses with less than 10 per cent deposits. Finnie Mae and Freddie Mac also purchased hundreds of billions of subprime securities for their own portfolios to make money and help satisfy HUD affordable-housing goals. (Schwartz, 2009) Due to the deregulation loans, some borrowers could get loans under easy credit conditions. Predatory lending refers to the practice of unscrupulous lenders, to enter into unsafe or unsound secured loans for inappropriate purpose. When the housing bubble burst, USA housing and financial assets decli ne in value, and the subprime crisis was coming out. After that the financial crisis had been basically formed. There is a story of financial crisis stated by Butler (2009: p51): Once upon a time, greedy bankers, mostly in the USA, made fortunes by selling mortgages to poor people who could not really afford them. They knew these loans were unsound, so they diced and sliced them and sold them in packages around the world to equally greedy bankers who did not know what they were buying. When the housing bubble burst, the borrowers defaulted, and bankers discover that what they had bought was worthless. They went burst, business loans dried up, and the economy shuddered to a halt. The moral, accounting to this description of events, is that capitalism has failed, and we need tougher rules to curb bankers greed and make sure all this never happens again. This story could express accurately the process of finance crisis. The impacts of financial crisis in the world: A collapse of the US subprime mortgage market and the reversal of the housing boom in other industrialized economies have had a ripple effect around the world. Furthermore, other weaknesses in the global financial system have surfaced. Some financial products and instruments have become so complex and twisted, that as things start to unravel, trust in the whole system started to fail. First, it affected on financial institutions. Initially the companies affected were those directly involved in home construction and mortgage lending such as Northern Rock and Countrywide Financial, as they could no longer obtain financing through the credit markets. Over 100 mortgage lenders went bankrupt during 2007 and 2008. Concerns that investment bank Bear Steams would collapse in March 2008 resulted in its fire-sale to JP Morgan Chase. The crisis hit its peak in September and October 2008. Several major institutions either failed, were acquired under duress, or were subject to government takeover. These included Lehman Brothers, Merrill Lynch, Fannie Mae, Freddie Mac and AIG. Second, it affected the money market. During September 2008, the crisis hits its most critical stage. There was the equivalent of a bank run on the money market mutual funds, which frequently invest in commercial paper issued by corporations to fund their operations and payrolls. Withdrawals from money markets were $144.5 billion during one week, versus $7.1 billion the week prior. Third, wealth effects in the financial crisis. There is a direct relationship between declines in wealth, and declines in consumption and business investment, which along with government spending represent the economic engine. Between June 2007 and November 2008, Americans lost an estimated average of more than a quarter of their collective net worth. By early November 2008, a broad U.S. stock index the SP 500, was down 45 percent from its 2007 high. Housing prices had dropped 20% from their 2006 peak, with futures markets signaling a 30-35% potential drop. Total home equity in the United States, which was valued at $13 trillion at its peak in 2006, had dropped to $8.8 trillion by mid-2008 and was still falling in late 2008. Total retirement assets, Americans second-largest household asset, dropped by 22 percent, from $10.3 trillion in 2006 to $8 trillion in mid-2008. During the same period, savings and investment assets (apart from retirement savings) lost $1.2 trillion and pension assets lost $1.3 trillion. Taken together, these losses total a staggering $8.3 trillion. (Altman, 2009). Finally, it is the effects on the global economy. The crisis rapidly developed and spread into a global economic shock, resulting in a number of European bank failures, declines in various stock indexes, and large reductions in the market value of equities and commodities. Moreover, the de-leveraging of financial institutions, as assets were sold to pay back obligations that could not be refinanced in frozen credit markets, further accelerated the liquidity crisis and caused a decrease in international trade. World political leaders, national ministers of finance and central bank directors coordinated their efforts to reduce fears, but the crisis continued. At the end of October 2008 a currency crisis developed, with investors transferring vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc, leading many emergent economies to seek aid from the International Monetary Fund. (Landler, 2008). The impacts of financial crisis on US banking system: GDP, the output of goods and services produced by labour and property located in the US, decreased at an annual rate of approximately 6 percent in the fourth quarter of 2008 and first quarter of 2009, versus activity in the year-ago period. The US unemployment rate increased to 9.5% by June 2009, the highest rate since 1983 and roughly twice the pre-crisis rate. The average hours per work week declined to 33, the lowest level since the government began collecting the data in 1964. From time to time confidence in the USAs banks would weaken and banks note-holders would demand their specie (i.e. gold or silver) back. Banks could meet these withdrawals either from their own vaults or by taking back some of the bullion left with the clearing-house association. The lower the level of their balance the clearing system, the greater would be the likelihood that individual non-central banks would be overdrawn. (Congdon, 2009) There is an example from him: suppose bank Ys initial deposit with the clearing system was 30 pounds. If its customers instructed it to make net cash payments to other banks of 35 pounds, bank Y would have been overdrawn by 5 pounds. (2009: pp50). So financial crisis and the publics associated large-scale note redemptions would cause increased tension between members of the clearing house. The impacts of financial crisis on UK banking system: Just how serious the financial crisis was becoming, not only in the US but also in the UK, hit home late on September 2007 when news emerged that Northern Rock, had been forced into a bailout from the Bank of England. Northern Rock Bank is the most affected by financial crisis in the UK, and also the most typical bank for my study. Northern Rock is one of the top five mortgage lenders in the UK in terms of gross lending. As well as mortgages, the bank also deals with savings accounts, loans and insurance. In 2006 the bank had moved into subprime lending via a deal with Lehman Brothers. Although the mortgages were sold under Northern Rocks brand through intermediaries, the risk was being underwritten by Lehman Brothers. On 14 September 2007, the Bank sought and received a liquidity support facility from the Bank of England, following problems in the credit markets. This led to many customers queuing outside branches to withdraw their savings. Partly as a result of the run, on 22 February 2008 the bank was taken into state ownership. The nationalization was a result of two unsuccessful bids to take over the bank, neither being able to fully commit to repayment of taxpayers money within three years. Because of Northern Rock crisis, customers lost their confidence for any banks in the UK. They started withdraw money from their saving account, so that all banks in the UK were affected a lot. Aim Objectives and Key Questions: Aim and Objectives: Nowadays, the US Financial Crisis (2008) along with the subprime crisis (2007) seemed to have delivered a severe blow to worlds banking sector. Banks are thought to be central to business activity. Therefore, when they experience financial distress, governments usually come to the rescue, offering emergency liquidity and various forms of bailout programs. Then the aim of this dissertation is to determine impacts of financial crisis on banking and corresponding measures on these impacts. In order to achieve my aim, I need to achieve following objectives which are the steps towards my aim: To determine the impacts of financial crisis on banking in China. Achieving this objective will be much help as I would also understand different impacts of financial crisis on banking in comparing with other area. To analyse the measures to the impacts of financial crisis on banking. During the objective I will have the chance to recognize the process of central bank in each country. Therefore, I would realize the measures for banks under the financial crisis in two different views: financial views and political views. Key Questions: To achieve the aim and the objectives, the research was set out to answer the following key questions: What are the impacts of financial crisis on banking system in China? And what are the different impacts among China and other areas? What are the corresponding measures for these impacts in these countries? This paper is focus on banking sector under the financial crisis, and how banks faced the crisis. The importance of this topic lays on the impacts of banking sector under the financial crisis and what the best measure for banks is. Basically, my research is based on the origin and process of financial crisis to find out the impacts for banks in each country. Therefore, I would investigate how to resolve these impacts. Research Methodology: As discussed in the sections above, the research objective is to determine the impacts of financial crisis on banking in China so that I could compare different impacts with other countries. The study identifies questionnaires and interviews as suitable research methods for the present paper. The general belief of research is often thought of as collecting data, constructing questionnaires/interviews and analysing data. But it also includes identifying the problem and how to proceed solving it (Ghauri et al., 1995). Questionnaire approach: A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. Questionnaires have advantages over some other types of surveys in that they are cheap; do not require as much effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data. Questionnaires are also sharply limited by the fact that respondents must be able to read the questions and respond to them. Thus, for some demographic groups conducting a survey by questionnaire may not be practical. Usually, a questionnaire consists of a number of questions that the respondent has to answer in a set format. A distinction is made between open-ended and closed-ended questions. An open-ended question asks the respondent to formulate his own answer, whereas a closed-ended question has the respondent pick an answer from a given number of options. In this paper, I have used the ope n-ended questions into questionnaires. Because the impacts of financial crisis on banking which is an open discussion, it is more suitable to use open-ended questions to discuss. In this research, I have posted out 100 questionnaires for several banks in different positions of banking areas. But I only get 50 feedbacks from banks include: China Construction Bank with 11 copies; Bank of China with 23 copies; HSBC with 2 copies; China Merchants Bank with 2 copies; Shanghai Pudong Development Bank with 2 copies; Agricultural Bank of China with 3 copies; Bank of Communications with 2 copies; China Citic Bank with 3 copies; Bank of East Asia with 2 copies. The questionnaire is to undertake ideas from employees in each bank above. The employees have been selected in different job positions that include: account managers; customer managers; salesmen; managing directors; operation managers; accountants; channel managers; international clearing managers; administrations; marketers; product managers; staffs; retail managers; and others with no answers. There are four key questions amount those seven questions in this questionnaire: How much are you affected by financial crisis? Explain what affects you in financial crisis? What is different consumer behaviour between before financial crisis and after financial crisis? What do you think how to resolve the effects of financial crisis on banking? In the view of above questions, we can find out different effects of financial crisis on banking to employees in different positions and the correspond measures for the effects. Interview approach: An interview is a conversation between two or more people (the interviewer and interviewee) where questions are asked by the interviewer to obtain information from the interviewee. In most cases, interviews are only one of a number of qualitative/quantitative techniques that we are likely to use in a research project. The main types of interview include structured interview, semi-structured interview and unstructured interview. Semi-structured interviews are controlled interactions. However, this model enables the researcher to ask supplementary questions, for clarification and elaboration, whilst the use of open questions grants the participant greater freedom to discuss their experience. Unstructured interviews are relatively uncontrolled interactions where, once the question has been put, the researcher listens and do not prompt. This offers the participant the opportunity to discuss the subject using their frames of reference. Unstructured interviews can be very useful in studies of peoples information seeking and use. They are especially useful for studies attempting to find patterns, generate models, and inform information system design and implementation. For example, Alvarez and Urla (2002) used unstructured interviews to elicit information requirements during the implementation of an enterprise resource planning (ERP) system. Due to their conversational and non-intrusive characteristics, unstructured interviews can be used in settings where it is inappropriate or impossible to use other more structured methods to examine peoples information activities. For example, Schultze (2000) used unstructured interviews, along with other ethnographic methods, in her eight-month field study in a large company investigating their production of informational objects. What are the rationales for using semi-structured interviews? It can help us to obtain relevant information. It can give the freedom to explore genera l views or opinions in more details. It can use external organization so as to retain independence. The strengths of semi-structured interviews are that the researcher can prompt and probe deeper into the given situation. For example, the interviewer inquires about using computers in English language teaching. Some respondents are more computer literate than others are. Hence, with this type of interview the interviewers are able to probe or asked more detailed questions of respondents situations and not adhere only to the interview guide. In addition, the researcher can explain or rephrase the questions if respondents are unclear about the questions. A structured interview also known as a standardised interview is a quantitative research method commonly employed in survey research. The aim of this approach is to ensure that each interviewee is presented with exactly the same question in the same order. This ensures that answers can be reliably aggregated and that comparisons can be made with confidence between sample subgroups or between survey periods. A structured interview also standardises the order in which questions are asked of survey respondents, so the questions are always answered given to survey question can depend on the nature of preceding questions though context effects can never be avoided, it is often desirable to hold them constant across all respondents. Structured interviews can also be used as a qualitative research methodology. These types of interviews are best suited for engaging in respondent or focus group studies in which it would be beneficial to compare/contrast participant responses in order to answe r a research question. For structure qualitative interviews, it is usually necessary for researchers to develop an interview schedule which lists the wording and sequencing of questions. In this research, I have chosen structured telephone interview as main interview approach. There are three interviewees have been interviewed through telephone in three different banks which are Bank of China, Bank of Communications and Agricultural Bank of China. The positions of these three interviewees are Department Head in Bank of China, Branch President in Agricultural Bank of China and Financial Manager in Bank of Communications. The questions in the interviews are made quite same as to questions made in questionnaires. Findings and Analysis: Findings: From the view of all the questionnaires and interviews, I have organised the following points as findings: In China Construction Bank there are two staffs affected by financial crisis are a lot; seven staffs affected by financial crisis are medium; and each one staffs affected by financial crisis is a little and almost not. Nine of all eleven staffs answered that their incomes have been reduced during the financial crisis. Seven of all staffs realized that customers became more prudent after financial crisis compared before. In Bank of China there are nine staffs affected by financial crisis are a lot; ten staffs affected by financial crisis are medium; and each two staffs affected by financial crisis are a little and almost not. Almost half of all twenty-three staffs answered that their workings are much more difficult to handle such as some services closed, working period much longer and more competitions etc. Seven of all staffs stated that their incomes have affected very much because of financial crisis. Ten of all staffs realized that customers became more prudent and rational during the financial crisis. Other staffs almost realized that customers had no any changes under the financial crisis compared before. In other seven banks there are five staffs affected by financial crisis are a lot; five staffs affected by financial crisis are medium; one staff affected by financial crisis is a little; and five staffs affected by financial crisis are almost not. Each five staffs answered that their workings are much more difficult to handle and their incomes have been reduced. Almost half of all sixteen staffs realized that customers became more rational and likely to transfer their money from some risky investments to a saving account or banking instruments. Analysis: From the findings of the study it emerges that: Most participants who are in different positions of different banks realized that they have been affected by financial crisis a lot or medium. And most customers they deal with became more rational and prudent. Before the outbreak of the financial crisis is not that customers apply for special financial management, the clients risk acceptance is very strong, and the abundant capital in the market. Most clients are seeking short-term immediate benefits, but did not fully take into account their own business and assets of the plan a long-term investment, life-long investment. But after the outbreak of the financial crisis, most customers whether it is their own operations and domestic and foreign investment had both a certain degree of loss. Customers will first consider the operating and investment risk, followed by another to seek profit; their sights would be to put the long-term, truly entered the era of the pursuit of long-term interests. Adverse impacts to the unit under the financial crisis: First, non-performing loans increased pressure. The financial crisis on the business impact of large bank customers, especially export-oriented enterprises. Declining in exports led to decline in client business performance, repayment pressure, and increased risk of deterioration in credit quality. Second, the lack of effective demand for loans. Financial crisis led to bad corporate management, so that effective demand for loans fell. Third, the financial crisis lead to an international settlement business, hosting business, and capital markets businesses in a substantial decline so that intermediary business revenue. Fourth, the time when the economy is down, and constantly cut interest rates, banks net interest yield was downward trend. The effects of the financial Crises on the banking industry and an evaluation of the measures for resolving the crises. Using evidence from the Great Depression and several other banking crises, Hoggarth and Reidhill (2003) concluded that banking crises can have a long term dramatic effect on the economy if left unresolved but the scale and character of any intervention should have as its prime objective to keep fiscal costs minimal and to prevent any future moral hazard. Moral Hazard in this case refers to the risk that bankers who are aware of the governments unwavering commitment to crop up dying banks may take too much unnecessary risk since they have a guarantee that their banks will never go burst. This section discusses the effects of the recent 2007-2009 global financial crises on the banking industry. It further evaluates some of the measures put in place by the UK and US governments to alleviate the crises. At every point Hoggarth and Reidhills 2003 conclusion will be my point of reference as I evaluate the Fiscal Cost and Moral Hazard issues related with the resolution of the crises. Finall y, I will also discuss other view points and make recommendations on how the crises could have been tackled more effectively. The United Kingdom and United States economies were the largest hit and probably the most affected by the crises. It is worth bearing in mind that even though this crisis began in the financial sector and real estate sectors of these economies, it rapidly spread to the manufacturing and retail sectors. Without much notice every sector of the economy had been affected by the downturn. A vicious cycle quickly develops where as companies lack credit, they slow manufacturing and layoff workers leading to high unemployment rates. As unemployment increases and consumer credit and purchasing power drops, the demand for goods and services plummets and the entire economy is further hit. At the end of the cycle, the main cause of the demise is soon forgotten and the problem actually becomes one of scepticism and mistrust widely termed consumer confidence and/or investor confidence. It is popular opinion that such a crisis should not be left unresolved by country authorities even though it is caused by individual businesses and public companies. After all, a rapid decline in business profits and an increasing rate unemployment means a plunge in the states tax revenue, a hike in unemployment benefit payouts, an increase in government debt and the crumbling of the economy. Politicians are therefore faced with the dilemma of whether or not to interfere with the free market economy, taking actions that will have serious implications on management and investor behaviour and spending public money to save private investors. As dreadful as this may sound, there appears to be no other viable way to resolve a banking crisis. Banks in particular, are generally not stand alone institutions. One view point to resolving a banking crisis amidst a recession emphasises that any measures designed to ensure that banks survive in a sustainable way will be aimed at reviving and supporting bank stakeholders (Customers and investors). This view point advocates that the best way