Understanding the Definition of Strategy Formulation - Free Essay Example

Sample details Pages: 5 Words: 1546 Downloads: 7 Date added: 2017/06/26 Category Education Essay Type Narrative essay Did you like this example? Strategic formulation is the process of determining appropriate courses of action for achieving organisational objectives and thereby accomplishing organisational purpose. In a business context, it means what are the products and services the organisation will deliver, what type of market they will entry, which capabilities are required, how will they allocate the resources, and what the returns organisational seeks? Strategic formulation is very important as it is the crucial part in the strategic management. A good and effective strategy is very important to the organisation because it helps the organisation handle threats, seeking and grab the opportunities, and solve the weeknesses and enhance the strengths of the organization in order to survive in the competitive environment. 3.1 Distinction between Business Strategy and Corporate Strategy Business strategy is a long-term plan of action designed to achieve a particular goal or objectives. Corporate str ategy is the scope of the different industries and markets the organization competes within in order to achieve its organizational purpose. Normally, corporate strategy is supposed to be determined before the marketing strategy. In strategy formulation, it must included three stages of strategy. There are business level strategy, corporate level strategy, and international or globalisation level strategy. 3.2.1 Business Level Strategy Business level strategy is an integrated and coordinated set of commitments and action of the organisation uses to gain a competitive advantage by exploiting major competencies in specific products and services. It is concerned with how the organization business competes in a specific market. It also concerned the strategic decisions about the product choices, meet the customer expectations, exploiting or creating new opportunities, and gaining competitive advantages. Besides, it is refers to the aggregated strategies of single business firm o r a strategic business unit (SBU) in a diversified corporation. According to Michael Porter, an organisation must formulate their business strategy into three generic strategies to achieve a sustainable competitive advantage and long-term success. The three generic strategies are cost leadership, differentiation strategy, and focus strategy. 3.2.2 Cost Leadership The first generic strategies in business level strategy which are identified as Porters Five Forces is known as cost leadership strategy. Cost leadership is involving a firm being the lowest cost producer within the industry. This allows the firms to outperform rivals within the industry because it can be charged in lower prices. Although, the firm charge in lowest cost base, it stills can earn a profit. A dominant market share allows the firm to accumulate the greatest experience and the market share can continuing to grow to increase the cost advantages. A strategy of growth which enhance the accumulative experience and further lowers costs. A cost leadership strategy allows an organization to generate above-average profits even it is intensive rivalry. A low cost producer will be in a better position in relation to the threats of new entrants and or substitutes. Cost leadership risks can be expensive as the organisation continually updates the capital equipments. The activities of the cost leader maybe easy to imitate. 3.2.3 Differentiation Strategy Differentiation strategy is aimed at a broad market and involve the organisation competing on the basis of a unique or different product which is sufficiently valued by customers for them to pay a premium price. A major advantage of producing differentiated product is vitals will find it difficult to imitate. Besides, they also required different resources, capabilities, and organisational arrangements than cost leadership. There are some several types of differentiation strategy that are design or brand image, customizing products to suit the customers in specific requirements, state-of-the-act of technology, marketing ability, reliability, products engineering skills, and creativity. A differentiation strategy provides a defence against competitive rivalry because it creates brand loyalty which helps to protect an organisation from price competition. The brand loyalty is to be overcome by defence against new entry and substitutes. The buyers are constrained by a lack of alternatives and premium price are easier to pay back for suppliers. Differentiated strategy has inherent risks. The high or premium price charged for differentiation cannot be too expensive above the competitors that it results in reduced the brand loyalty. Competitors may narrow the attributes of differentiation which results in customers being faced a viable substitute. 3.2.4 Focus Strategy Focus strategy occurs when an organisation undertakes either a cost leadership or differentiation strategy but within only a narrow segment of the market. It also can be defined as market niche strategy, concentration on specific geographical market, isolating a unique segment product line, and isolating a specific buyer group. By focusing on a niche of the market, the organization must be placed to meet the buyers expectation. By focusing on the needs of specific segments that exist in the industry, the organisation can achieve competitive advantage either through lower costs or differentiation. The risk of following in focus strategies are the customer preferences may change and the niche player may be unable to respond, broad-based competitors believe the segment represents an attractive submarket and outfocus the focuser, and the difference between the segment and the main market narrows leaving focus-based competitors at a disadvantage. 3.3 Resource-Based Approach to Strategy Formulation The two fundamental reasons for making the resources and capabilities of the firm the foundation for its strategy are inte rnal and capabilities provide the basic direction for a firms strategy. The resources and capabilities are the primary source of profit for the firm. Resources are the inputs into the production process while capability means the capacity to perform some task. Resources are the source of an organizations capability but capabilities are the main source of an organizations competitive advantage. The value of resources and capability of a business are sustainability and appropriability. Sustainability included durability, transparency, transferability, and replicability. 3.4 Corporate Level Strategy Corporate level strategy means overall scope of the different industries and markets the organisation competes within in order to achieve the organisational goals. Corporate strategy decisions included investment in diversification, vertical integration, acquisitions, and new ventures; the allocation of resources between the different businesses of the firm, and divestments. 3.5 Growth Strategies Growth strategies have four strategies that an organization might follow that are market penetration, market development, product development, and diversification. 3.5.1 Market Penetration Market Penetration is to increase market share in your existing markets using your existing products. This strategy relies upon the organization existing resources and capabilities and therefore is relatively low risk. 3.5.2 Market Development Market Development means entering new markets with your existing products. This can be targeted the new market segments and new geographical area, or devising the new uses for the products. 3.5.3 Product Development Product Development is developing the new products to sell in your existing markets. The ability to innovate is crucial in developing products for rapidly changing customer markets. 3.5.4 Diversification Diversification is developing new products to serve new markets. This will involve greatest level of risk it may be necessary where the organization existing products and markets offer little opportunity for growth. There are two diversification strategies such as related diversification and unrelated diversification. Related diversification refers entry into related industry which there is still some link with organizations value chain. It is included vertical integration and horizontal integration. Unrelated diversification refers to a situation where organisation moves into a totally unrelated industry. It can be called conglomerate diversification to reflect that managing a portfolio of companies. Thus resulting four core categories of strategy alternatives can be achieved internally through investment and development, or externally through mergers, acquisitions, and strategic alliances 3.6 Portfolio Analysis Portfolio analysis is simply different business units that organisation possess. The two primary models are the Boston Consulting Group Matrix and The General Ele ctric-McKinsey Matrix.T he business portfolios overall uses is to determine whether the combined growth and profitability of the businesses in the portfolio will allow the company to attain its performance objectives. 3.7 Corporate Parenting Corporate parenting is concerned with how a parent company adds value across the businesses that make up the organisation. Corporate parent refers to all those levels of management that are not part of customer facing and profit run business units in multi-business companies. The concept of corporate parenting is useful in helping an organization to decide which new businesses it should be proceed on. It also helps parent company decide how to manage the business. 3.8 International Level Strategy International level strategy refers to the linkages between markets that exist across worldwide. What happens in one county has an impact on occurrences in other countries. These linkages may be economic, financial, social, political, in eff ect, anything that leads to increased interdependence among nations. These strategies have included four types of international strategy that are multidomestic strategy, global strategy, and transnational strategy. 3.8.1 Multidomestic Strategy Multidomestic strategy is aimed at adapting products and service in national markets. Thus, responding more effectively to the changes in local demand conditions. The local manager needs to determine how the products and services can meet the local customer expectations. 3.8.2 Global Strategy Global strategy is the organisation provides a standardised products and services for international markets. An organisation seeks to have their own manufacturing, marketing, and RD centralised in a few locations. A combination of standardisation with centralised facilities and functions enable them to reap substantial economies of scale. 3.8.3 Transnational Strategy Transnational strategy is seeks to simultaneously achieve global effici ency, national responsiveness, and worldwide leveraging capabilities of its innovations and learning. Don’t waste time! Our writers will create an original "Understanding the Definition of Strategy Formulation" essay for you Create order

Student assessment methodologies related to the EHEA Free Essays

This paper concerns university instructors ‘ ratings of their pupils ‘ competencies ( cognition and accomplishments ) and discusses student-centred and competency-based higher instruction in the European Higher Education Area ( EHEA ) . The statement is that a dramatic displacement of focal point has taken topographic point in European higher instruction, from teacher-centred to student-centred instruction, and instructors in this system need to familiarise themselves with this displacement and the related constructs. For illustration, the course of study and appraisal methodological analysiss in today ‘s universities emphasize competencies and concentrate on what pupils can execute and how these competencies can be related to work. We will write a custom essay sample on Student assessment methodologies related to the EHEA or any similar topic only for you Order Now In order to get a comprehensive apprehension, cognition about the historical roots behind student-centred instruction and competence development may be required, and this paper attempts to supply some of this information. With these new penetrations, a pick will necessitate to be made: should these tendencies be resisted and the old methods of supplying classs be adhered to, or should the air currents of alteration be accepted and versions be made – or possibly the best pick lies someplace in between these two options? Regardless of one ‘s emotions, such a personal pick should be based upon and motivated by the best information available. The Bologna Process and the EHEA The European Higher Education Area, EHEA, is an international undertaking in Europe and beyond, in which higher instruction systems are made more crystalline and in sync with one another. Founded in 2010 as a consequence of the Bologna Declaration ( 1999 ) , it presently comprises 47 national provinces and a figure of advisory organisational members. The historical roots of the Bologna Process can be traced back to a figure of earlier understandings ; it is of import to pay attending to these in order to to the full understand the procedures and the EHEA of today. The 1997 Lisbon Recognition Convention and the 1998 Sorbonne Declaration The Lisbon Recognition Convention is an understanding between a figure of member provinces of the Council of Europe and a figure of of import provinces in the field of higher instruction, including, for illustration, Australia, Canada, New Zealand and the USA. The Convention stipulates that grades and periods of survey must be recognised â€Å" unless a significant difference can be shown † ( Lisbon Recognition Convention, 1997, p. 7 ) by the establishment that is charged with acknowledgment. The Sorbonne Declaration, signed in 1998 by four European states ( France, Germany, Italy and the United Kingdom ) , was an understanding sing higher instruction with the intent of coming to a common apprehension and working together to promote survey periods abroad, to better excellence in survey and research, to develop a common apprehension of instruction and acquisition and to promote cooperation. In order to enable comparing, the Sorbonne Declaration put frontward a system of rhythms and a system of credits ( the European Credit Transfer System, ECTS ) . The Declaration ends with a call to other provinces â€Å" to fall in us in this aim and aˆÂ ¦ [ to ] all European Universities to consolidate Europe ‘s standing in the universe through continuously improved and updated instruction for its citizens † ( Sorbonne Declaration, 1998, p. 3 ) . The 1999 Bologna Declaration and the ECTS system The 29 states that signed the Bologna Declaration in 1999 agreed to back up the thoughts expressed in the Sorbonne Declaration and to co-ordinate policies in order to make a figure of aims, peculiarly to â€Å" set up the European country of higher instruction and to advance the European system of higher instruction world-wide † ( Bologna Declaration, 1999, p. 3 ) . Among the chief stakeholders in the Bologna Process-a procedure implemented from 1999 through 2010-were the European University Association, the European Association of Institutions of Higher Education, the European Association for Quality Assurance in Higher Education, the Council of Europe, the European Commission, UNESCO, the European Students ‘ Union, and the assorted authorities curates responsible for higher instruction ( Heinze A ; Knill, 2008 ) . The stakeholders held a figure of semiannual meetings in Paris ( 1999 ) , Prague ( 2001 ) , Berlin ( 2003 ) , Bergen ( 2005 ) , London ( 2007 ) , and Leuven and Louvain-la-Neuve ( 2009 ) . The Bologna Declaration is non a lawfully binding papers ; alternatively, it is an understanding in which the participating states voluntarily synchronise their systems of higher instruction based on thoughts antecedently expressed in the Sorbonne Declaration ( 1998 ) . This synchronism implies that pupils ‘ makings are defined in footings of larning results, instead than in footings of the length of survey, which, in bend, means that the basic unit has shifted from the figure of professor contact hours to student work load. It besides requires the acceptance of determined degrees of higher instruction makings, for illustration the unmarried man ‘s and maestro ‘s grades. The European Credit Transfer System ( ECTS ) , which was discussed in both the Sorbonne and the Bologna declarations, is based on the work load required by the mean pupil to accomplish the aims of a class, that is to state, to successfully finish the work required and go through the obligatory scrutinies, which in bend are based on the class ‘s course of study and expected larning results. The ECTS is an instrument implemented to acknowledge pupils ‘ study-periods, but it is of import to retrieve that the intent of the original Declarations, including the debut of the ECTS system was non merely to help pupils. Another-equally important-purpose was to sharpen Europe ‘s fight, as Adam ( 2001 ) reminds us. The politicians and policy shapers did non outline the Sorbonne and Bologna declarations based on unselfish philanthropic gift, instead they were concerned â€Å" about the nature and fight of European higher instruction † ( Adam, 2001, p. 292 ) . Student-centred instruction and acquisition results The footings student-centred instruction and larning results ( Otter, 1993 ; NCIHE, 1997 ) are given outstanding topographic points in the Bologna Process and in the paperss released by the higher instruction curates. The Leuven/Louvain-la-Neuve Communique from 2009, for illustration, discusses the importance of student-centred acquisition ; in it, the curates stipulate that student-centred larning â€Å" requires authorising single scholars † and â€Å" new attacks to learning and larning † , every bit good as â€Å" effectual support and counsel constructions and a course of study focused more clearly on the scholar † ( Leuven/Louvain-la-Neuve Communique , 2009, p. 3 ) . Student-centred instruction includes the possibility for pupils to take their ain survey waies during their old ages at higher instruction establishments and sections. The curates acknowledge this and reason that the curricular reform taking topographic point in the EHEA will â€Å" be an on-g oing procedure taking to high quality, flexible and more separately trim instruction waies † ( Leuven/Louvain-la-Neuve Communique , 2009, p. 3 ) . From reading the Communique , it is clear that the curates are confident that student-centred acquisition should be the end of the course of study reforms during the Bologna Process. The term larning results is besides conspicuously discussed in the ministerial communiques, such as the Berlin Communique from 2003. Competence-based instruction The construct of competencies has been used in assorted educational scenes over the last decennaries, both in the USA and in Europe. In the context of the Bologna Process, the term was used in the Bologna Declaration, which stated that â€Å" a Europe of cognition † was an of import factor for growing and for supplying Europe ‘s citizens with â€Å" the necessary competencies to confront the challenges of the new millenary, † ( Bologna Declaration, 1999, p.A 1 ) . The construct was besides extensively used in the Tuning Educational Structures in Europe undertaking. The purpose of the Tuning undertaking, which began in 2001, was to tune the educational constructions in European higher instruction and to ask for argument sing â€Å" subject-specific and general competencies † ( Tuning, 2002, p. 3 ) . At the Prague Ministerial meeting in 2001, it was stated that Europe ‘s citizens should be able to â€Å" efficaciously utilize their makings, competences and accomplishments † throughout the EHEA ( Prague Communique , 2001, p. 1 ) . It is interesting to detect that the Prague Communique uses the term â€Å" competences † , alternatively of â€Å" competencies † , unlike other communiques-it is non clear if this was a witting determination from the curates. Four old ages after the Bologna Declaration, the construct of competencies was besides discussed in the Graz Declaration ( 2003 ) , published by the European University Association ( EUA ) , where a continued development of a common definition of competencies was emphasised. Subsequently the same twelvemonth, when the curates responsible for higher instruction met in Berlin, they acknowledged the statement put frontward in the Graz Convention ( Berlin Communique , 2003 ) . Therefore, the Berlin Communique states that the member provinces should â€Å" lucubrate a model of comparable and compatible makings † ( Berlin Communique , 2003, p. 4 ) and that this model should depict makings in footings of larning results and competencies. In the same communique , the curates besides declared the demand to reaffirm the Lisbon Recognition Convention and to heighten the fight of European higher instruction. The EUA ‘s following of import papers, the Trends-IV Report ( 2005 ) , was published prior to the meeting of European higher instruction curates in Bergen in 2005. The study indicated that â€Å" some agnosticism † existed in certain parts of Europe towards the thought of competence-based instruction. The study besides addressed the fact that differences sing learning attacks and â€Å" the grade to which student-centred acquisition [ was a portion of ] †¦ the mundane life at universities † prevailed ( Trends-IV Report, 2005, p. 48 ) . The curates go toing the 2005 Bergen meeting took note of the consequences and suggestions presented in the Trends-IV Report and discussed the demand for continued work in the EHEA. An overarching model for makings was adopted for the undergraduate, maestro and post-graduate degrees, every bit good as forms for each rhythm, â€Å" based on larning results and competencies † ( Bergen Communique , 2005, p. 2 ) . In 2007, competencies were briefly mentioned in the London Communique , in which the European higher instruction curates concluded that higher instruction should play a strong function in â€Å" raising the degree of cognition, accomplishments and competencies in society † ( London Communique , 2007, p. 5 ) . In this Communique , the curates discuss the ways in which developments have brought them â€Å" a important measure closer to the realization of the European Higher Education Area † and reference that this country has been developed in a mode that will â€Å" ease mobility, addition employability and strengthen Europe ‘s attraction and fight † . Competences were besides briefly mentioned in the Leuven/Louvain-la-Neuve Communique in 2009. The Communique , which was agreed upon in April 2009 by the curates responsible for higher instruction in the so 46 states of the Bologna Process, discussed the importance of employability and asserted that â€Å" higher instruction should fit pupils with the advanced cognition, accomplishments and competencies they need throughout their professional lives † ( Leuven/Louvain-la-Neuve Communique , 2009, p. 3 ) . In March 2010, the curates of the states take parting in the Bologna Process adopted the Budapest-Vienna Declaration and officially launched the European Higher Education Area. The curates continued to admit the importance of supplying pupils with the chance to get â€Å" cognition, accomplishments and competencies † and agreed that the acquisition environment should â€Å" further student-centred acquisition † ( Budapest-Vienna Declaration, 2010, p. 2 ) . Recognition was besides given to the original Bologna Declaration of 1999 and its vision for 2010, in which pupils would profit from just acknowledgment of their makings. The impact of the Bologna Process in the EHEA Therefore far, student-centred and competency-based instruction and pupils ‘ competencies on the pan-European policy degree have been discussed. However, it is every bit of import to turn to these facets from regional and national positions in order to to the full appreciate and understand the challenges posed to instructors and staff at the establishments and sections that constitute the EHEA. An increased force per unit area on higher instruction establishments and sections The mundane determinations made at higher instruction establishments are influenced by complex issues, doing it hard to expect extroverted alterations and the practical deductions of these alterations ( Newton, 2003 ) . The Bologna Process, and the creative activity of the EHEA, has increased faculty members ‘ work load. Furthermore, increased competition between different higher instruction establishments to enroll pupils and staff has been observed. Rapid and extremist alterations in educational methods have besides taken topographic point as a effect of the important developments in computing machine and Internet-based instruction. The new type of pupils, who are much more familiar with using the cyberspace in order to obtain information, puts new demands on the establishments of higher instruction in footings of advanced larning methods, such as unfastened and distance acquisition, with support from information and communicating engineerings ( ICT ) . These demands are coup led with an increased force per unit area on higher instruction establishments, managers and caputs of sections to be accountable and to go through the audit from assorted governments and regulating organic structures. In amount, these tendencies add to the overall challenges faced by educational suppliers who deal with issues related to learning and larning on a day-to-day footing in order to program and put to death high quality instruction and pupil appraisals. The drawn-out debut procedure – an illustration from Portugal The debut of the Bologna reform within each member province has been a drawn-out procedure. In Portugal, for illustration, the execution of the Bologna procedure has taken rather some clip and has caused stakeholders a certain sum of problem. One ground for these jobs can be attributed to â€Å" the elaborate and normative traditions of the Lusitanian statute law † , harmonizing to Veiga A ; Amaral ( 2009, p. 57 ) . In a 2006 study of higher instruction establishments in Portugal, Veiga and Amaral ( 2009 ) demonstrated that universities had high outlooks â€Å" of more horizontal mobility activities † on the maestro ‘s degree after the Bologna Process was implemented. However, this expected addition in mobility has non manifested itself, partially as a consequence of jobs with â€Å" the articulation between rhythms † and â€Å" some deficiency of coherency between the different types of Masterss being developed † ( Veiga A ; Amaral, 2009, p. 61 ) . Veiga A ; Amaral besides report issues associated with the incorrect usage of the ECTS system in Portuguese higher instruction. Veiga A ; Amaral ‘s ( 2009 ) information indicate that the precedence among many establishments was to travel from a learning paradigm to a student-centred acquisition paradigm, stating, â€Å" Lusitanian higher instruction establishments saw Bologna as a window of chance to present pedagogic and curricular reforms without aiming [ other reforms ] to the ends of Bologna † ( Veiga A ; Amaral, 2009, p. 62 ) . Veiga and Amaral concluded that the execution of Bologna in Portugal has been â€Å" achieved in name merely † ( Veiga A ; Amaral, 2009, p. 67 ) , as a effect of the velocity by which the Bologna Process was implemented and the deficiency of information and legislative support from the authorities. The challenges of module development and preparation – an illustration from Spain Diaz, Santaolalla A ; Gonzalez ( 2010 ) conducted a survey of attitudes among module and of the sensed preparation demands among these professors, to react to the challenges of the EHEA. The survey, which included 257 university instructors in humanistic disciplines, societal scientific disciplines, experimental scientific disciplines, wellness, and engineering from the Complutense University of Madrid, focused on the EHEA and policy devising in general. In peculiar, the survey focused on the cognition and attitudes among these module members and the sensed preparation demands for the instructors based on the demands of the EHEA. The consequences show that about one tierce of the instructors report that they possess merely superficial cognition about the EAHE, and about one 3rd province that they are non certain how the EHEA-induced alterations will impact them as instructors. 66 % of the sample indicated that there is a demand to alter learning methods, but at the same clip 57 % do non believe that the structural conditions of the establishment and their sections will back up the development work needed to suit the instruction that is being offered to the demands of the EAHE system. Based on their consequences, Diaz, Santaolalla A ; Gonzalez ( 2010, p.A 112 ) provinces that â€Å" module preparation causes a batch of passion to billow † and that it likely will do it even more hard to plan this type of plans. The usage of the construct of competence-based instruction The term competence-based instruction has been contested, and certain persons have argued that it is merely a term used by policy shapers for political and societal grounds, instead than resting on a scientific footing. Hodge ( 2007 ) , for illustration, notes that the term competence-based ( or performance-based ) instruction has been used for decennaries to intend different things, and claims that policymakers in Europe presently use it as a bombilation word and as a conceptual footing for redesigning course of study and learning scenes within the EHEA, based on a political docket. Indeed, the term competence-based ( or performance-based ) instruction has long been used in assorted educational scenes and by different organisations, such as the American Association of Colleges for Teacher Education ( AACTE ) . For illustration, the AACTE appointed a Committee on Performance-Based Teacher Education in the early 1970s, which issued a list of features of successful performance-based instruction ( Elam, 1971 ) . Harmonizing to this list, competencies to be demonstrated by the scholar, e.g. a pupil, should be stated in order to be able to measure the scholar ‘s behavior. The standards to be used in this appraisal should besides be expressed and should depict the degrees of competencies. Furthermore, the instructional programmes, that is to state, the classs, should assist develop scholars ‘ competencies, and the appraisal of the pupil ‘s competencies should use public presentation as the primary beginning of grounds ( Elam, 1971 ) . At least a part of the historical roots of the construct of competence-based instruction lies in the USA, the Cold War epoch ( 1950-1970 ) , and the technological competition between E and West ( Hodge, 2007 ) . The initial success of the E, with its Sputnik programme at the terminal of the 1950s, for illustration, was a irritant in the West ‘s side and in its instruction and preparation programmes. In the USA, extended probes and reorganisations of schooling and professional programmes were undertaken. One consequence of this check-up was that the educational focal point shifted from academic cognition to practical and applicable competencies and utile results. Teacher instruction in the US was besides affected by this probe, as educational programmes were reorganised. The instructor instruction programmes were reformed to concentrate more on single demands and existent work demands, and, as a effect, alterations in appraisal besides took topographic point, with a stronger acc ent on measuring public presentation and discernible results. In the late sixtiess, for illustration, the American authorities issued instructions to the establishments responsible for teacher instruction to develop new course of study with a stronger focal point on public presentation and behavioral results, competencies to be learned and the rating of these public presentations, results and competencies ( Hodge, 2007 ) . Appraisal and scaling in the EHEA Therefore far, the constructs of student-centred and competency-based instruction in the EHEA have been discussed. Our attending will now turn to university instructors ‘ ratings of their pupils ‘ competencies. Different appraisal formats Methods of measuring and rating undergraduate pupils vary across Europe ( Sullivan, 2002 ; Karran, 2004 A ; 2005 ) . Numerous attacks to assessment and assessment methods proving a scope of accomplishments and abilities exist. The most common method is to allow the pupils write tests, essays or studies, but there are many other attacks used for appraisal, such as self- and peer appraisal and workplace-based appraisal in off-campus locations. It is of import for instructors to use the optimum attacks and methods, based on the classs ‘ course of study, and to give pupils a mix of attacks and methods, thereby enabling them to show the scope of their abilities. Traditionally, it is the instructor who assesses the pupils, but coachs in supervised vocational preparation pattern or director off-campus may besides analyze and rate the learning advancement of pupils, presuming that they are prepared for this undertaking and that they receive support. Regardless of who assesses the pupils, it is of import that the rating is based on clear and available standards and defendable grounds ( Brown, 1999 ) . Scoring and rating pupils In higher instruction, there are numeral tonss and classs. Classs are frequently given in the signifier of letters ( or some other descriptive component ) and are applied to peculiar public presentations. A passing class is frequently achieved when certain standards, designed to set up whether pupils have reached a minimal degree of competence, are met. The scaling of pupils, i.e. the procedure by which a instructor assigns values to a pupil ‘s public presentation ( for illustration 1-10 or A-E ) , plays a important function in higher instruction. Classs are of import to such interested parties as possible employers, Ph.D.-programme admittances commissions and bookmans, who analyse the effects of educational scenes ( Davies A ; Graff, 2005 ) or who analyse the prognostic cogency of classs, that is to state, to what extent classs from classs can foretell future public presentations in alumnus classs and in professional life ( Taylor A ; Albo, 1993 ; Gonnella, Erdmann A ; Hoja, 2004 ) . But above all, classs are of import to the pupils themselves. Previous research confirm that pupils hold strong positions about appraisal and scaling, and these positions influence the ways in which pupils approach larning and analyzing ( Sambell, McDowell A ; Brown, 1997 ) . Student-centred appraisal In the European Higher Education Area, appraisal is regarded as something meant to heighten pupils ‘ acquisition ( Leathwood, 2005 ) . Therefore, assessment governments and formats are get downing to alter, going formative instead than simply summational. In add-on, the possibilities of utilizing a assortment of appraisal techniques, including self- and peer appraisal and problem-based acquisition and appraisal techniques, deserve to be explored ( Segers A ; Dochy, 2001 ) . The job, from the position of instructors who are used to multiple pick questionnaires and similar trials, is that these modern appraisal signifiers are perceived to hold lower degrees of dependability and cogency. Furthermore, appraisal in the EHEA will besides be more practical and non-academic, instead than simply scholastic and for the exclusive intent of fixing undergraduates for post-graduate surveies. During the last decennary, involvement among educational suppliers in inquiries sing appraisal and scrutiny has increased, every bit good as in how different methods of appraisal affect pupil acquisition ( Wilson A ; Fowler, 2005 ; Leathwood, 2005 ) . It has become more and more common for university and college instructors to utilize formative appraisal, instead than merely summational appraisal, to heighten pupil acquisition ( Segers A ; Dochy, 2001 ) . Formative appraisal is an rating whose intent entails modifying and/or bettering an educational class or the pupils ‘ acquisition environment, based on information obtained during the class. Summational appraisal, on the other, refers to the traditional method of measuring pupils ; it takes topographic point at the decision of a class, with the intent of finding the class ‘s effectivity and the pupils ‘ classs ( Roos, 2005 ) . The relationship between classs and future workplace success Research concentrating on classs and workplace public presentation after graduation makes usage of two theories: cognitive accomplishments theory claims that pupils develop their cognitive accomplishments during their clip at the university and that their degrees of public presentation are seeable in their classs. These accomplishments so lead to success in the workplace, and, since productiveness is rewarded with increased net incomes, â€Å" a positive relationship should be between academic accomplishment and net incomes † ( Donhardt, 2004, p. 281 ) , as â€Å" the more educated the employee, the more productive he/she isaˆÂ ¦ and that employers reward more extremely educated workers with higher wage † ( Donhardt, 2004, p. 273 ) . Meanwhile, Certification theory claims that occupation appliers ‘ certifications ( grades and sheepskin ) are what affairs to employers, instead than classs. Harmonizing to this theory, classs have no influence on future net inco mes. Donhardt ( 2004 ) studied net incomes ‘ results by researching the anticipation and growing of net incomes over the first 3 old ages following graduation. Classs were the step of academic achievement, and net incomes were declarative of the value ascribed to an person. Donhardt wished to find whether accomplishment in college, as measured by class point norm, can foretell the growing of net incomes over clip. He expected â€Å" rate point norm to be cardinal in the relationship † ( Donhardt, 2004, p. 281 ) . However, his consequences indicated that class point norm had small impact on net incomes. GPA was non a important variable and had really small correlativity with net incomes. Nor did pupils with high classs experience significantly higher growing of net incomes over clip when compared with pupils with lower classs. Donhardt concluded the enfranchisement theory, which claims that occupation appliers are frequently screened based on their university grades, since gra de certifications designate the pupil as a difficult worker, to be more plausible. This determination is nil new to research workers in higher instruction. In old research, Pascarella and Terenzini ( 1991 ) , for illustration, have demonstrated that a positive association exists between holding a college or university grade and success in the workplace. Looking in front The following Ministerial Meeting will be hosted by Romania in Bucharest on April 26-27, 2012. At this meeting, the curates will look into the advancement that has been made in the Leuven/Louvain-la-Neuve docket and will endeavor to drive it frontward. The undermentioned ministerial conferences will be held in 2015, 2018 and 2020. What can be expected in the close hereafter with regard to higher instruction in Europe? Competency-based instruction and student-centred appraisal methodological analysiss will most surely continue to be utilised, merely as the merchandisation of higher instruction seems likely to go on. Global economic factors will go on to act upon educational systems and the labor markets, and higher instruction establishments will confront even ferocious economic competition from one another. This paper has described the general understandings and the international character of the Bologna Process ; the assorted histrions and administrations involved have merely been superficially outlined. Many more constructions and factors impact the Bologna Process and impact the EHEA. For the establishments and sections, it is critical to be witting of constructions and factors on the local degree, for illustration in the planning and execution of professional development and preparation for university instructors and other staff. In these attempts, it is of import to admit, for illustration, â€Å" the instructors ‘ ain demands, the possible differences associated to scientific Scopess, and academic and age class † , as Diaz, Santaolalla A ; Gonzalez ( 2010, p. 117 ) reminds us. 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Contingent Convertible Capital Structure -Myassignmenthelp.Com

Question: Discuss About The Contingent Convertible Capital Structure Decisions? Answer: Introduction Rivett, Australia. The company carries on the activities related to exploration of the mineral resources in Australia. The company primarily explores for the copper, silver, lead, gold, Zinc, Uranium, Platinum, thorium, earth elements and other metal in south Australian auditing South Wales (Capitalmining.com.au 2018). Ownership structure Major substantial shareholders More than 20% shareholding among the shareholders of the company no one is holding greater than 20% shares More than 5% holding of shares HSBC Custody Nominees Australia Ltd falls under the substantial shareholder as out of total shares it holds 80,000,000 shares that is, 5.28% (Capitalmining.com.au 2018). Name of main people Chairman Robert McCauley Board members Peter Torney Non-executive director Anthony Dunlop Non-executive director Peter Dykes Non-executive director Robert McCauley Executive Director James Ellingford Non-executive Director CEO Robert McCauley (Capitalmining.com.au 2018). Key ratios Return on assets (ROA) = (NPAT / Total Assets) Return on Equity (ROE) = (Net profit after tax / Ordinary equity) Debt ratio = Total liabilities / Total assets EBIT/TA * NPAT/EBIT * TA/OE = NPAT/OE EBIT/TA * NPAT/EBIT * TA/OE = -37,36,555/37,70,735 * -37,36,555/-37,36,555* 37,70,735/35,16,843 = -1.06 NPAT/OE = -37,36,555 / 35,16,843 = -1.06 Hence, it can be proved from the above that EBIT/TA * NPAT/EBIT * TA/OE = NPAT/OE Phenomenon of TA/OE It analyses the insolvency risk and leverage level of the company with the help of the total assets as compared to the owners equity. It also present the percentage of asset held by the shareholders of the company. If the ratio goes up it represent that the companys equity portion will go down and debt portion will go up (Scholes 2015). Therefore, the company may reach to unsustainable level as additional debt will increase the interest cost and will deteriorate the financial status of the company. However, various factors on which the ratio depends are industry status, present economic scenario and the assets and liability of the company. Reasons why ROE being higher than ROA The biggest factor that segregates the ROE and ROA is the financial leverage or the debt. The fundamental equation of balance sheet that is (Assets = Liabilities + Equity) represent that if the company has no debt then the total asset will be equal to total equity which in turn will increase the ROE. Apart from that, when debts are available at the rate that is lower than ROA it will increase ROE (Albul, Jaffee and Tchistyi 2015). Therefore, the interest is lower against ROA, will results into higher ROE ASX website information Monthly stock movement 2 years time period Stock movement graph Report on stock movement Looking at the above stocks movement, it is recognized that the stock of Capital Mining Limited before 2 years though started from 0.08, it fell to 0.005 that is almost to zero over the times of 2 years. It has sharp downward moving trend and will be considered as volatile. However, marketing stocks of All Ordinary Stock slowly moving upward and will be considered less volatile as compared to Capital Mining Limited. The correlation among 2 stocks are computed as -0.807. Therefore, the stocks are negatively correlated (Titman, Keown and Martin 2017). Recent announcement The company started the drilling at Scotia Cobalt Nickel Project in the Eastern area of Goldfields of WA. It is expected that the acquisition of the project will increase the share price of the company as the performance of the company will be improved. Peter Torney and Mr. Anthony Dunlop agreed to the termination from their agreement and role. There are 2 risks associated with the stock of Capital Mining Limited. 1st risk is can be diversified through investing in other stock and the 2nd one cannot be diversified as it is the market risk. Stock field Beta of Capital Mining Ltd is 2.41 Risk free rate = Rf = 4%, Market risk premium = Rm = 6% Therefore, required rate of return of the companys share = R = Rf + ( Rm Rf ) R = 4% + 2.41* (6% 4%) = 4% + 4.82% = 8.82% Conservative investment The conservative investment is the investment that gives maximum return with lowest level of risk. Generally, the conservative investors are afraid of risk and do not want to take up higher level of risks. The other type of investors can be moderate, conservative, moderately aggressive and aggressive (Brooks 2015). The type of the investors can be assessed on the basis of their risk taking approaches. From above calculation it can be recognized that the risk association that is the beta of the company is 2.41 which is quite high. Therefore, the stock of the company is not a conservative investment. WACC (weighted average cost of capital) Computation of WACC WACC = E/V * Re +D/V * Rd * (1-Tc), Where, E/V = Equity percentage in the capital structure D/V = Debt percentage in the capital structure Re = Cost of equity Rd = Rate of debt Tc = corporate tax rate It is identified from the annual report of the company that they did not have any borrowing or debt in their capital structure. Therefore, the cost of equity of the company itself will be the WACC (weighted average cost of capital). The calculated cost of equity of the company is 8.82%. Therefore, WACC of Capital Mining Limited will be 8.82% Impact of higher WACC has on management evaluation Higher WACC represents that the stock of the company is associated with higher risk and the investors need more return to absorb the higher level of risk. Another factor represented by the higher WACC is that whether the stock is able to earn more return as compared to the WACC (HA Davis and Lleo 2015). However, the higher WACC is optimized through adjustment of debt component in the capital structure. Further, the higher level of WACC will reduce the value of the company. Optimal debt structure Optimal structure for capital It is the capital structure at which the value of the company is maximized at minimum cost. It can be identified from the above table that the debt ratio of the company for the year 2015 the debt ratio of the company is 73% whereas for 2016 it is 6.7%. Therefore, the debt ratio of the company is significantly high and for 2016 is low as the ratio around 40% is considered as idea (Peirson et al. 2014). Hence, it is suggested that if the company wish to raise additional fund it shall raise through debt and not through equity. Gearing ratio To adjust the gearing ratio the company paid off their obligations and reduced the liabilities from $ 11,91,065 to $ 253,892 over the years from 2015 to 2016. Further, they increased the equity from $ 14,410,056 to $ 21,221,826. However, directors report did not depict anything regarding this. Dividend policy As it can be found from the annual report of the company that the company did not earn any positive income during last 4 years, it did not pay or declare any dividend. Further, the directors did not recommend any dividend for the year ended 2016 (Marx 2013). Recommendation It can be suggested based on the above analysis that if the risk and return aspect of the stock is taken into consideration, the stock shall not be included under the investment portfolio. The reason is that the ROA and ROE both are in negative figures as the company could not earn positive income over last 4 years. Further, stock is involved with higher risk as the beta of the company is 2.41. Further, Reference Albul, B., Jaffee, D.M. and Tchistyi, A., 2015. Contingent convertible bonds and capital structure decisions. Brooks, R., 2015.Financial management: core concepts. Pearson. Capitalmining.com.au., 2018. Home. [online] Available at: https://www.capitalmining.com.au/ [Accessed 30 Jan. 2018]. HA Davis, M. and Lleo, S., 2015.Risk-Sensitive Investment Management. Marx, J. ed., 2013.Investment management. Van Schaik. Peirson, G., Brown, R., Easton, S. and Howard, P., 2014.Business finance. McGraw-Hill Education Australia. Scholes, M.S., 2015.Taxes and business strategy. Prentice Hall. Titman, S., Keown, A.J. and Martin, J.D., 2017. Financial management: Principles and applications. Pearson.

LC and UCP 600 Essay Example

LC and UCP 600 Essay Introduction Letter of credit (L/C) can be defined as an â€Å"undertaking† whereby the buyer’s bank is committed (on behalf of the buyer) to place an agreed amount of money at the seller’s disposal under some agreed conditions. Since the agreed conditions include, amongst other things, the presentation of some specified documents, the letter of credit is called Documentary Letter of Credit or, in short, Documentary Credit. The Uniform Customs Practice for Documentary Credit (UCPDC) published by International Chamber of Commerce (2007) Revision; Publication No. 00 defines Documentary Credit: â€Å"Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honor a complying presentation. † Complying presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice . According to the definition of â€Å"Credit†, when an issuing bank determines that a presentation (of documents) is complying, it must honor. Honor means, a) to pay at sight, if the credit is available by sight payment, b) to incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment, c) to accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity if the credit is available by acceptance. Article 15b of UCP-600 says that when a confirming bank determines that a presentation is complying, it must honor or negotiate. In case of complying presentation, a nominated bank may also honor or negotiate (article 15c). It thus appears that credit is not only available at issuing bank, it (credit) can also be made available at confirming bank or nominated bank (appointed by issuing bank). Moreover, any bank can be a nominated bank in case of a credit available with any bank. (Article 2 and 6a of UPC-600) At this point, it is also imperative to define â€Å"Negotiation†. According to article 2 (UCP- 600) We will write a custom essay sample on LC and UCP 600 specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on LC and UCP 600 specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on LC and UCP 600 specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank. The above terms such as sight payment, deferred payment, acceptance and negotiation, are infact, reflecting terms of payment of credit. Terms of payment or maturity date of payment (when issuing bank or confirming bank or nominated bank is going to make payment) is therefore, an essential characteristic of a credit. Article 6b of UCP-600 states, a credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation. It thus follows from the above discussion that a credit: i) is an irrevocable/definite undertaking of an issuing bank to honor a complying presentation ii) must indicate with which it is available; and iii) must indicate the terms of payment 1. 1 Parties to a Letter of Credit The parties are: The Issuing Bank The Confirming Bank, if any, and The Beneficiary Other parties which facilitate the Documentary Credit are: The Applicant The Advising Bank The Nominated Bank The Reimbursing Bank The Claiming Bank The Presenter The Transferring Bank, if any Issuing Bank means the bank that issues a credit at the request of an applicant or on its own behalf. Confirming Bank means the bank that adds its confirmation to a credit upon the issuing bank’s authorization or request. Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honor or negotiate a complying presentation. Beneficiary means the party in whose favor a credit is issued. Applicant means the party on whose request the credit is issued. Advising Bank means the bank that advises the credit at the request of the issuing bank. However, an advising bank may also utilize the services of another bank (â€Å"second advising bank†) to advice the credit and any amendment to the beneficiary. Nominated Bank means the bank with which the credit is available or any bank in the case of a credit available with any bank. Reimbursing Bank means the bank, appointed by the issuing bank, to reimburse the claims (of payment) of the claiming bank. Claiming bank means the nominated bank which claims the payment from the reimbursing bank. Presenter means a beneficiary, bank or other party that makes a presentation. Transferring Bank means a nominated bank that transfers the credit. In case of credit available with any bank, transferring bank is specifically authorized by issuing bank. An issuing bank may also be a transferring bank. 1. 2 Types of Letter of credit Article of 3 of UCP-600 says that a credit is irrevocable even if there is not indication to that effect. It therefore, indicates that (under UCP-600) there is only one type of credit, named Irrevocable Letter of Credit. Other Documentary Credits: i) Confirmed Documentary Credit: A confirmation of a documentary credit by a bank (confirming bank) upon the authorization or request of the issuing bank constitutes a definite undertaking of the confirming bank, in addition to that of the issuing bank, provided that the stipulated documents are presented to the confirming bank or to any other nominated bank on or before the expiry date and the terms and conditions of the documentary credit are compiled with either to honor or to negotiate. ii) Revolving Credit: A Revolving Documentary Credit is one by which, under the terms and conditions thereof, the amount is renewed or reinstated without specific amendments to the documentary credit being required. The Revolving Documentary Credit may revolve in relation to time or value. A documentary credit of this nature may be cumulative or non-cumulative. iii) Transferable Credit and Transferred Credit: Transferable credit means a credit that specifically states it is â€Å"transferable†. A transferable credit may be made available in whole or in part to another beneficiary (â€Å"second beneficiary†) at the request of the beneficiary (â€Å"first beneficiary†). Transferred credit means a credit that has been made available by the transferring bank to a second beneficiary. iv) Back to Back Credit: The back to back credit is a new credit opened on the basis of an original credit in favor of another beneficiary. Under the back to back concept, the seller as the beneficiary of the first credit offers it as ‘security’ to his bank for the issuance of the second credit. The beneficiary of the back to back credit may be located inside or outside the original beneficiary’s country. v) Red Clause Credit: A Red Clause Credit is a credit with a special condition incorporated into it that authorizes the confirming Bank or any other Nominated Bank to make advances to the beneficiary before presentation of the documents. Under the above credit, the issuing bank is liable for the pre-shipment advances made by the nominated bank, in case the beneficiary fails to repay or present the documents for settlement. vi) Standby Credits : The Standby Credit is a documentary credit or similar arrangement, however named or described, which represents an obligation to the beneficiary on the part of the Issuing Bank to : a) repay money borrowed by the applicant, or advanced to or for the account of the applicant; (b)Make payment on account of any indebtedness undertaken by the applicant; or (c)Make payment on account of any default by the applicant in the performance of an obligation. 1. 3 Operations of Documentary Letter of Credit The following five major steps are involved in the operation of a documentary letter of credit: i) Issuing; ii) Advising; iii) Confirmation and Amendment (if necessary); iv) Presentation; v) Settlement. i)Issuing a Letter of Credit: Before issuing L/C, the buyer and seller located in different countries, conclude a ‘sales contract’ providing for payment by documentary credit. As per requirement of the seller, the buyer then instructs the bank – the issuing bank – to issue a credit in favor of the seller (beneficiary). Instruction/Application for issuing a credit should be made by the buyer (importer) in the issuing bank’s standard form. The credit application which contains the full details of the proposed credit, also serves as an agreement between the bank and the buyer. After being convinced about the ‘conditions’ contained in the application form the issuing bank then proceeds for opening the credit to be addressed to the beneficiary. ii)Advising a Letter of Credit: Advising through a bank is a proof of apparent authenticity of the credit to the seller. The process of advising a credit consists of forwarding the original credit to the beneficiary to whom it is addressed. Before forwarding, the advising bank has to verify the signature(s) of the officer(s) of the issuing bank and ensure that the terms and conditions of the credit are not in violation of the existing exchange control regulations and other regulations relating to export. In such act of advising, the advising bank does not undertake any liability. However, an advising bank may also utilize the services of another bank (â€Å"second advising bank†) to advice the credit and any amendment to the beneficiary. iii)Confirmation and Amendment of Credit: The beneficiaries are not always willing to rely on the credit standing of the issuing bank – particularly when bank is unknown to the beneficiary. Consequently, a beneficiary may request that the applicant instruct the issuing bank to have its credit confirmed by a confirming bank, usually in the beneficiary’s country. Moreover, parties involved in L/C, particularly the seller and the buyer cannot always satisfy the terms and conditions in full as expected due to some obvious and genuine reasons. In such a situation, the credit should be amended. However, a credit can neither be amended nor cancelled without the agreement of the issuing bank, the confirming bank (if any) and the beneficiary. iv)Presentation of Documents The seller being satisfied with the terms and conditions of the credit proceeds to dispatch the required goods to the buyer and after that, has to present the documents evidencing dispatching of goods and fulfilling other terms and conditions of L/C to the issuing or nominated bank on or before the stipulated expiry date of the credit. After receiving all the documents, the issuing or nominated bank then examines the documents against the credit. If the documents are found complying, the bank will honor or negotiate. v)Settlement: Settlement means fulfilling the commitment of issuing bank in regard to effecting payment subject to satisfying the credit terms fully. This settlement may be done under three separate arrangements as stipulated in the credit. These are: a) Settlement by Payment: Here the beneficiary / presenter presents the documents to the nominated / issuing bank and the bank then scrutinizes the documents. If satisfied, the nominated / issuing bank makes payment to the beneficiary and in case this bank is other than the issuing bank, then sends the documents to the issuing bank. If the issuing bank is satisfied with the requirements, payment is obtained by the nominated bank from the issuing bank. b) Settlements by Acceptance: Under this arrangement, the beneficiary / presenter submits the documents to the nominated / issuing bank accompanied by a draft drawn on the bank (where credit is available) at the specified tenor. After being satisfied with the documents, the bank accepts the documents and the draft and if it is a bank other than the issuing bank, then sends the documents to the issuing bank stating that it has accepted the draft and at maturity the reimbursement will be obtained in the pre-agreed manner. c) Settlement by Negotiation: This settlement procedure starts with the submission of documents by the beneficiary / presenter to the nominated bank accompanied by a draft drawn on the issuing bank or any other drawee, at sight or at a tenor, as specified in the credit. After scrutinizing that the documents meet the credit requirements, the bank will purchase the documents and / or drafts, advance or agree to advance funds to the beneficiary on or before reimbursement is due. This bank then sends the documents and the draft to the issuing bank. As usual, reimbursement will be obtained in the pre-agreed manner. 2. 0 Uniform Customs and Practice for Documentary Credits (UCP 600) UCP 600 is the latest revision of the Uniform Customs and Practice that govern the operation of letters of credit. UCP 600 comes into effect on 01 July 2007. The 39 articles of UCP 600 are a comprehensive and practical working aid to bankers, lawyers, importers, and exporters, transport executives, educators, and everyone involved in letter of credit transactions worldwide. This revision of the Uniform Customs and Practice for Documentary Credits (commonly called â€Å"UCP†) is the sixth revision of the rules since they were first promulgated in 1933. It is the fruit of more than three years of work by the International Chamber of Commerce’s (ICC) Commission on Banking Technique and Practice. In May 2003, the International Chamber of Commerce authorized the ICC Commission on Banking Technique and Practice (Banking Commission) to begin a revision of the Uniform Customs and Practice for Documentary Credits, ICC Publication 500. As with other revisions, the general objective was to address developments in the banking, transport and insurance industries. Additionally, there was a need to look at the language and style used in the UCP to remove wording that could lead to inconsistent application and interpretation. When work on the revision started, a number of global surveys indicated that, because of discrepancies, approximately 70% of documents presented under letters of credit were being rejected on first presentation. This obviously had, and continues to have, a negative effect on the letter of credit being seen as a means of payment and, if unchecked, could have serious implications for maintaining or increasing its market share as a recognized means of settlement in international trade. The introduction by banks of a discrepancy fee has highlighted the importance of this issue, especially when the underlying discrepancies have been found to be unsound. Whilst the number of cases involving litigation has not grown during the lifetime of UCP 500, the introduction of the ICC’s Documentary Credit Dispute Resolution Expertise Rules (DOCDEX) in October 1997 (subsequently revised in March 2002) has resulted in more than 60 cases being decided. To address these and other concerns, the Banking Commission established a Drafting Group to revise UCP 500. It was also decided to create a second group, known as the Consulting Group, to review and advice on early drafts submitted by the Drafting Group. The Consulting Group, made up of over 40 individuals from 26 countries, consisted of banking and transport industry experts. Ably co-chaired by John Turnbull, Deputy General Manager, Sumitomo Mitsui Banking Corporation Europe Ltd, London and Carlo Di Ninni, Adviser, Italian Bankers Association, Rome, the Consulting Group provided valuable input to the Drafting Group prior to release of draft texts to ICC national committees. One of the structural changes to the UCP is the introduction of articles covering definitions (article 2) and interpretations (article 3). In providing definitions of roles played by banks and the meaning of specific terms and events, UCP 600 avoids the necessity of repetitive text to explain their interpretation and application. Similarly, the article covering interpretations aims to take the ambiguity out of vague or unclear language that appears in letters of credit and to provide a definitive elucidation of other characteristics of the UCP or the credit. During the course of the last three years, ICC national committees were canvassed on a range of issues to determine their preferences on alternative texts submitted by the Drafting Group. The results of this exercise and the considerable input from national committees on individual items in the text is reflected in the content of UCP 600. The Drafting Group considered, not only the current practice relative to the documentary credit, but also tried to envisage the future evolution of that practice. This revision of the UCP represents the culmination of over three years of extensive analysis, review, debate and compromise amongst the various members of the Drafting Group, the members of the Banking Commission and the respective ICC national committees. Valuable comment has also been received from the ICC Commission on Transport and Logistics, the Commission on Commercial Law and Practice and the Committee on Insurance. 2. 1 UCP 600 Article 1 Application of UCP The Uniform Customs and Practice for Documentary Credits, 2007 Revision, ICC Publication no. 00 (UCP) are rules that apply to any documentary credit (credit) (including, to the extent to which they may be applicable, any standby letter of credit) when the text of the credit expressly indicates that it is subject to these rules. They are binding on all parties thereto unless expressly modified or excluded by the credit. 2. 2 UCP 600 Article 2 For the purpose of these rules: Advising bank means the bank that advises the credit at the request of the issuing bank. Applicant means the party on whose request the credit is issued. Banking day means a day on which a bank is regularly open at the place at which an act subject to these rules is to be performed. Beneficiary means the party in whose favour a credit is issued. Complying presentation means a presentation that is in accordance with the terms and conditions of the credit, the applicable provisions of these rules and international standard banking practice. Confirmation means a definite undertaking of the confirming bank, in addition to that of the issuing bank, to honour or negotiate a complying presentation. Confirming bank means the bank that adds its confirmation to a credit upon the issuing banks authorization or request. Credit means any arrangement, however named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. Honour means: a. to pay at sight if the credit is available by sight payment. b. to incur a deferred payment undertaking and pay at maturity if the credit is available by deferred payment. c. to accept a bill of exchange (draft) drawn by the beneficiary and pay at maturity if the credit is available by acceptance. Issuing bank means the bank that issues a credit at the request of an applicant or on its own behalf. Negotiation means the purchase by the nominated bank of drafts (drawn on a bank other than the nominated bank) and/or documents under a complying presentation, by advancing or agreeing to advance funds to the beneficiary on or before the banking day on which reimbursement is due to the nominated bank. Nominated Bank means the bank with which the credit is available or any bank in the case of a credit available with any bank. Presentation means either the delivery of documents under a credit to the issuing bank or nominated bank or the documents so delivered. Presenter means a beneficiary, bank or other party that makes a presentation. 2. 3 UCP 600 Article 3 Interpretations For the purpose of these rules: Where applicable, words in the singular include the plural and in the plural include the singular. A credit is irrevocable even if there is no indication to that effect. A document may be signed by handwriting, facsimile signature, perforated signature, stamp, symbol or any other mechanical or electronic method of authentication. A requirement for a document to be legalized, visaed, certified or similar will be satisfied by any signature, mark, stamp or label on the document which appears to satisfy that requirement. Branches of a bank in different countries are considered to be separate banks. Terms such as first class, well known, qualified, independent, official, competent or local used to describe the issuer of a document allow any issuer except the beneficiary to issue that document. Unless required to be used in a document, words such as prompt, immediately or as soon as possible will be disregarded. The expression on or about or similar will be interpreted as a stipulation that an event is to occur during a period of five calendar days before until five calendar days after the specified date, both start and end dates included. The words to, until, till, from and between when used to determine a period of shipment include the date or dates mentioned, and the words before and after exclude the date menti oned. The words from and after when used to determine a maturity date exclude the date mentioned. The terms first half and second half of a month shall be construed respectively as the 1st to the 15th and the 16th to the last day of the month, all dates inclusive. The terms beginning, middle and end of a month shall be construed respectively as the 1st to the 10th, the 11th to the 20th and the 21st to the last day of the month, all dates inclusive. 2. 4 UCP 600 Article 4 Credits v. Contracts a. A credit by its nature is a separate transaction from the sale or other contract on which it may be based. Banks are in no way concerned with or bound by such contract, even if any reference whatsoever to it is included in the credit. Consequently, the undertaking of a bank to honour, to negotiate or to fulfil any other obligation under the credit is not subject to claims or defences by the applicant resulting from its relationships with the issuing bank or the beneficiary. A beneficiary can in no case avail itself of the contractual relationships existing between banks or between the applicant and the issuing bank. b. An issuing bank should discourage any attempt by the applicant to include, as an integral part of the credit, copies of the underlying contract, proforma invoice and the like. 2. 5 UCP 600 Article 5 Documents v. Goods Services or Performance Banks deal with documents and not with goods, services or performance to which the documents may relate. 2. 6 UCP 600 Article 6 Availability, Expiry Date and Place for Presentation a. A credit must state the bank with which it is available or whether it is available with any bank. A credit available with a nominated bank is also available with the issuing bank. b. A credit must state whether it is available by sight payment, deferred payment, acceptance or negotiation. c. A credit must not be issued available by a draft drawn on the applicant. d. i. A credit must state an expiry date for presentation. An expiry date stated for honour or negotiation will be deemed to be an expiry date for presentation. ii. The place of the bank with which the credit is available is the place for presentation. The place for presentation under a credit available with any bank is that of any bank. A place for presentation other than that of the issuing bank is in addition to the place of the issuing bank. e. Except as provided in sub-article 29 (a), a presentation by or on behalf of the beneficiary must be made on or before the expiry date. 2. 7 UCP 600 Article 7 Issuing Bank Undertaking a. Provided that the stipulated documents are presented to the nominated bank or to the issuing bank and that they constitute a complying presentation, the issuing bank must honour if the credit is available by: i. sight payment, deferred payment or acceptance with the issuing bank; ii. ight payment with a nominated bank and that nominated bank does not pay; iii. deferred payment with a nominated bank and that nominated bank does not incur its deferred payment undertaking or, having incurred its deferred payment undertaking, does not pay at maturity; iv. acceptance with a nominated bank and that nominated bank does not accept a draft drawn on it or, having accepted a draft drawn on it, does not pay at maturity; v. negotiation with a nominated bank and that nominated bank does not negotiate. b. An issuing bank is irrevocably bound to honour as of the time it issues the credit. c. An issuing bank undertakes to reimburse a nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the issuing bank. Reimbursement for the amount of a complying presentation under a credit available by acceptance or deferred payment is due at maturity, whether or not the nominated bank prepaid or purchased before maturity. An issuing banks undertaking to reimburse a nominated bank is independent of the issuing banks undertaking to the beneficiary. 2. 8 UCP 600 Article 8 Confirming Bank Undertaking a.Provided that the stipulated documents are presented to the confirming bank or to any other nominated bank and that they constitute a complying presentation, the confirming bank must: i. honour, if the credit is available by a. sight payment, deferred payment or acceptance with the confirming bank b. sight payment with another nominated bank and that nominated bank does not pay; c. deferred payment with another nominated bank and that nominated bank does not incur its deferred payment undertaking or, having incurred its deferred payment undertaking, does not pay at maturity; d. cceptance with another nominated bank and that nominated bank does not accept a draft drawn on it or, having accepted a draft drawn on it, does not pay at maturity; e. negotiation with another nominated bank and that nominated bank does not negotiate. ii. negotiate, without recourse, if the credit is available by negotiation with the confirming bank. b. A confirming bank is irrevocably bound to honour or negotiate as of the time it adds its confirmation to the credit. c. A confirming bank undertakes to reimburse another nominated bank that has honoured or negotiated a complying presentation and forwarded the documents to the confirming bank. Reimbursement for the amount of a complying presentation under a credit available by acceptance or deferred payment is due at maturity, whether or not another nominated bank prepaid or purchased before maturity. A confirming banks undertaking to reimburse another nominated bank is independent of the confirming banks undertaking to the beneficiary. d. If a bank is authorized or requested by the issuing bank to confirm a credit but is not prepared to do so, it must inform the issuing bank without delay and may advise the credit without confirmation. 2. 9 UCP 600 Article 9 Advising of Credits and Amendments a. A credit and any amendment may be advised to a beneficiary through an advising bank. An advising bank that is not a confirming bank advises the credit and any amendment without any undertaking to honour or negotiate. b. By advising the credit or amendment, the advising bank signifies that it has satisfied itself as to the apparent authenticity of the credit or amendment and that the advice accurately reflects the terms and conditions of the credit or amendment received. c. An advising bank may utilize the services of another bank (second advising bank) to advise the credit and any amendment to the beneficiary. By advising the credit or amendment, the second advising bank signifies that it has satisfied itself as to the apparent authenticity of the advice it has received and that the advice accurately reflects the terms and conditions of the credit or amendment received. d. A bank utilizing the services of an advising bank or second advising bank to advise a credit must use the same bank to advise any amendment thereto. e. If a bank is requested to advise a credit or amendment but elects not to do so, it must so inform, without delay, the bank from which the credit

Tips on How to Avoid the Plague

Tips on How to Avoid the Plague The bubonic plague that ravaged the world in the Middle Ages is still with us in the modern world, but medical knowledge has increased enough so that we now know what causes it and how to successfully treat it. Modern-day remedies for the plague involve the liberal application of antibiotics like streptomycin, tetracycline, and sulfonamides. Plague is very often fatal, and people with the disease may need addition symptom relief, including a source of oxygen and respiratory support, as well as medications to maintain adequate blood pressure. 12 Medieval Tips that Probably Didnt Help In the middle ages, though, there were no known antibiotics, but there were plenty of home and doctor-prescribed remedies. If you had the plague and were able to get a doctor to visit you, he would likely suggest one or more of the following, none of which would do any good at all. Rub onions, vinegar, garlic, herbs, or a chopped up snake on the boilsCut up a pigeon or chicken and rub the parts over your entire bodyApply leeches to the buboesSit in a sewer or rub human excrement on the bodyTake a bath in urineWhip yourself to show God that you are penitent for your sinsDrink vinegar, arsenic, and/or mercuryEat crushed minerals such as emeraldsInfuse your house with herbs or incense to purify itPersecute the people you dont like and think might have cursed youCarry sweet-smelling spices like ambergris (if you are wealthy) or plain herbs (if you are not)Suffer through repeated purges or bloodletting One Tip That Might Have Helped: Theriac The universal recommended medication for the plague in the medieval period was called theriac or London treacle. Theriac was a medicinal compound, a medieval version of remedies first concocted by classical Greek doctors for a number of ills. Theriac was made up of a complex mixture of multiple ingredients, indeed some recipes had 80 or more ingredients, but most of them included significant amounts of opium. Compounds were made up of a wide variety of dietary supplements, infusions of scabious or dandelion juice; figs, walnuts or fruit preserved in vinegar; rue, sorrel, sour pomegranate, citrus fruit and juice; aloes, rhubarb, absinth juice, myrrh, saffron, black pepper and cumin, cinnamon, ginger, bayberry, balsam, hellebore and a  whole lot more. The ingredients were mixed with honey and wine to make a thick, syrupy cordial-like consistency, and the patient was to dilute it in vinegar and drink it every day, or at least two to three times a week before meals. Theriac comes from the English word treacle and was said to cure fevers, prevent internal swellings and blockages, alleviate heart problems, treat epilepsy and palsy, induce sleep, improve digestion, heal wounds, protect against snake and scorpion bites and rapid dogs and poisons of all sorts. Who knows? Get the right combination and the plague victim might feel better, anyway. 12 Tips that Would Have Worked   Interestingly, we now know enough about the plague to go back in time and make some suggestions to Medieval people on how to avoid getting it. Most of them are only available to people rich enough to follow the directions: stay far away from people and other animals that carry fleas. Keep some clean clothes tightly folded and bound up in cloth treated with mint or pennyroyal, preferably in a cedar chest far from all animals and vermin.At the first whisper of plague in the area, flee any populated town or village and head for an isolated villa, far from any trade routes, with your cedar chest.Vigilantly clean every last corner of your villa, killing all rats and burning their corpses.Use plenty of mint or pennyroyal to discourage fleas, and  allow no cats or dogs to come near you.Under no circumstances enter an enclosed community like a monastery or board a shipOnce away from all human contact, wash in extremely hot water, change into your clean clothes, and burn the clothes you traveled in.Keep a minimum distance of 25 feet from any other human being to avoid catching any pneumonic form spread through breathing and sneezing.Bathe in hot water as frequently as you can.Keep a fire burning in your villa to ward off the bacillus, and stay as close to it as you can stand, even in summer. Have your armies burn and raze to the ground any nearby houses where plague victims have resided.Stay where you are until six months after the most recent nearby outbreak.Move to Bohemia before 1347 and dont leave until after 1353 Sources Fabbri, Christiane Nockels. Treating Medieval Plague: The Wonderful Virtues of Theriac. Early Science and Medicine 12.3 (2007): 247-83. Print.Holland, Bart K. Treatments for Bubonic Plague: Reports from Seventeenth-Century British Epidemics. Journal of the Royal Society of Medicine 93.6 (2000): 322-24. Print.Keiser, George R. Two Medieval Plague Treatises and Their Afterlife in Early Modern England. Journal of the History of Medicine and Allied Sciences 58.3 (2003): 292-324. Print.Siraisi, Nancy G. Medieval and Early Renaissance Medicine: An Introduction to Knowledge and Practice. Chicago University of Chicago Press, 1990. Print.

CCTV Research Paper Example | Topics and Well Written Essays - 2000 words

CCTV - Research Paper Example Contrastingly, man has deep concern about his personal safety and the safety of his properties. Basically, people protect their lives and make the acquisition of physical properties in order to sustain their lives. This is why the need for security is required. This research paper is, therefore, meant to find out mans’ response to security and the need for CCTV, their existence and future aspect in enhancing human security (Goold 39). Do hidden cameras reduce or solve breach of security based on people’s perception? One of the most considerate methods of ensuring environment is free from theft, thugs or from any form of physical vandalism is through the use of CCTV security systems. The incorporation of such systems has helped reduce breach of security in a number of ways, either by direct loop and transcription of the suspects’ image or by revealing his image directly for an appropriate action. Enhances facial surveillance According to research, the use of CCTV for facial surveillance is basically to strengthen the security and criminal investigators. Most respondents accepted that the use of facial surveillance systems, the security personnel’s are adequately equipped to monitor the movements of criminals from special type of registered screens known as watch list. Through the use of this technology, the CCTV cameras and facial surveillance, individuals who are suspected to hold dangerous weapons or explosive substances can be easily detected and disarmed as a way of improving safety of individuals. Hidden cameras help prevent potential security threat Most financial investors admitted to have accepted use of surveillance solution in places such easily put in place to monitor the cases of theft and vandalism. Taking in consideration a place like a banking ATM, the cameras are often placed in invisible paces to monitor insecurity prospects such as robberies, attacks and vandalism in a normal life circumstance. Besides, the stream, v ideo generated can also be used to assist in streamlining customers’ satisfaction as far as security is concerned Protects the ethics of employees at work place In order to prevent unnecessary employees’ misconducts such as internal thefts, drug abuse or violence, with respect to employers, hidden cameras would best serve this function. However, installation of surveillance cameras in an organization in most cases is met by negativity especially on the side of employees. Its usage usually gives manages’ and owners of the business some guidelines, which leads to business prospective returns in terms of revenue. However, as matter of illustrating employees trust to the organization, it is advisable that during installation, adequate communication should be passed to enlighten staff members about such effects of change. What are the specific perceptions of the people about CCTVs for their security? To be more specific, people would have different dimensions concern ing CCTV security availability and the sense of their personal and human security. Based on the in depth analysis of this paper, most people would prefer CCTV security as a provision for evidence in case something happens enabling the security personnel to give them fair justice during trials. Level of awareness Among the respondents picked from and questioned about the awareness of the CCTV, most of them gave a very considerable feedback. Significantly 40 percent of men as compared to 25

Friends of the Earth Research Paper Example | Topics and Well Written Essays - 1250 words

Friends of the Earth - Research Paper Example The organization asserts that the right to a clean and healthy environment is concurrent with the right to justice for every individual. This organization aims at not only changing the world for the people dwelling on Earth but also aims to preserve the natural blessings from complete deterioration. The key areas of the organization’s focus involve the promotion of economic justice and increasing resistance related to neo-liberalism, preservation of natural resources including forests, promotion of bio-diversity, steps to promote autonomous food availability and environmentally sound activities as well as preserving the energy resources which are getting scarcer in the modern age. The organization follows a fixed procedure to manage the tasks and project. Friends of the Earth International organize bi-annual meetings to prioritize projects and campaigns. The organization under review does not only aid environment and life locally but extends its activities at an international level. Its major international efforts relate to desertification, water, maritime, nuclear powers etc. MISSION The mission of the organization as described on its official website is â€Å"To campaign on today’s most urgent environmental and social issues by challenging the current model of economic and corporate globalization, and promote solutions that will help to create environmentally sustainable and socially just societies† [1]. The organization’s mission involves several deep concepts which extend the scope of its work areas and extent of its activities. Globalization, for instance, requires the organization to work in different areas like labor relations and issues, environmental issues and so on. HISTORY Friends of the Earth organization was started in 1969 by David Ross Brower (1912-2000), a prominent environmental enthusiast with also a passion for mountaineering. In 1971, the organization went international by collaborating with groups belonging to S weden, UK and France and over the years, the number of member groups in different countries increased to a number of 76. Among their early battles was the law suit against building a pipeline in Alaska going from Prudhoe Bay to Valdez Alaska. According to the Friends of the Earth, this was in conflict with the National Environmental Policy Act and an incursion into America’s last wilderness. They were also keen to tackle supersonic aircrafts due to its sonic boom and higher potential for damage to the ozone layer. This resulted in the ban of all overland commercial flight. Friends of the Earth was also one of the first organizations to challenge the construction of Nuclear Plants for generating energy in the United States. In 1986, Brower resigned to be succeeded by Erich Pica, a leading expert on the way federal tax dollars subsidize pollution and took the work forward of holding corporations accountable to the social and environmental impacts of their practices [1]. INFLUEN CES OF FRIENDS OF EARTH Giving voice to issues that favored the earth’s environment and lobbying aggressively for the correct government action has led to many governmental policies that curb if not prevent corporations and industries to violate the health and safety of our environment. These policies, legislations and checks not only benefit the subjects but are beneficial to the entire population of the Earth and its