P. S. I Love You Analysis

The movie I chose was P. S. I Love You. To begin with, I chose this movie because I have not seen it yet, but I have heard from my friends that it was a movie that I cannot miss out on. Reading the captions of the movies, it seemed very interesting and as soon as I was done with the movie, I gladly found it interesting. P. S. I love you had a unique plot compared to other love movies, after reading the synopsis I could automatically relate this movie with Chapter one on â€Å"Myth of the right one†. P. S. I Love You introduce its self with the daily lives of Holly Kennedy (the main character) and her husband Gerry Kennedy, a happily married couple going through their up and down stages of their marriage. Until Gerry dies of a brain Tumor, it takes Holly about a year to get over, but the movie narrates her life throughout the year. Holly and Gerry were married for 10 years and she got married at the age of 19, so we can say she married an age where she believed that Gerry was the right one and there would be no other like him. After the death of Gerry, Gerry understood that it would be hard for Holly to get over him so on his last few days before his death he writes several letters instructing her what to do as a last request. Holly received her first letter shortly after Gerry’s funeral on her 30th birthday. Gerry along with Holly’s friends are determined to to make Holly move on from the widow stage and be herself. Throughout the letters (which he had arranged for after his death) Gerry ends them by saying P. S. I Love you. The letter are supposed to encouraged Holly to move on by going out more and spending more time with her friends (Denise and Sharon), but her friends are afraid that the letters are keeping Holly tied up. In one of the final letters, Gerry arranged Holly, Denise, and Sharon, to his home town in Ireland. Once in Ireland, the girls are having fun at a local pub Gerry had recommended them to. At the pub, Holly meets a singer who strongly reminds her of her dead husband Gerry and ends up liking him, but by coincidence he happened to be one of Gerry’s best friends. Throughout the Ireland trip Holly finds out that Denise was having a baby and Sharon is getting married, so it caused Holly to emotionally relapse into herself and get depressed once again. Weeks later in New York Holly believing she was done with her letters until she received her final one from her mom when she was crying to her about how hard it was to go on without the love of her life. But in the last letter Gerry says his final good bye and tells Holly to move on and be herself and to think about what she was before she met Gerry (an Art Major). Eventually Holly finds out she has the talent to design women shoes. As Holly starts her own line of shoes we see that she gained a new confidence and it allows her to finally accept herself for what she has and for her friends to finally experience happiness. So the movie ends by Holly taking her mother to Ireland and as the film ends it shows the audience with a scene where she finally abandoned the fear of falling in love again and has opened up her life to the journey that awaits her. The Character I’m choosing in the movie to explain the problem that the character is facing is Holly. At the beginning of the Movie before Gerry died, Holly believed that he was â€Å"the one†, but then after his death, she goes on a journey that Gerry had left planned for her. Throughout the Journey Holly meets other men and fights her fear of falling in love again, believing that only Gerry was â€Å"the one†. At the end of the movie Holly learns how to accept Gerry’s death and meets a new man. If I were to choose a chapter from the book â€Å"A Daring Promise†, it would have to be the first chapter. As I was explaining throughout the whole essay, Holly is in the category of â€Å"Myth of the Right One†. She believes that there’s only one Gerry out there even after his death, until finally after a year of going through Gerry’s planned letters and other events, she finds a new man, that changed her image of â€Å"the right one†. So is there really only one right one for us? The book tells us that there isn’t such thing as one love, it’s just a myth. Based on the text, I can state that â€Å"One Love† is really a myth. There is more than just â€Å"One Love†. To obtain â€Å"One Love† both partners must always be communicating and come to agreements. In my opinion many people at first believe in only â€Å"One Love† at first because they have not had many relationships. We must come to our senses that nobody is perfect and we have to accept both the good and bad of a person. If you and your partner are willing to make sacrifices, then together you guys can make changes and have the same love for each other and being more united. If there is something I have learned from this assignment, it would be about marriage. I have never experienced a dead wife but I would assume that anyone who loves their partner would go have to go through what Holly did. Throughout the movie I also learned that getting married and losing a husband or getting divorced can affect everything around your life. When Holly was with Gerry they would always argue about when to have kids and when to move out of the apartment, but when Holly was single she lost her main balance of her life and things were pretty hectic in the beginning, until she finally had the support of her family and friends. Marriage is a great responsibility. I have also learned in class that you cannot change a person unless that person is willing to change.

Sample Pr Campaign

Communications Plan Addressing Most Pressing Reputational Issues Facing Livestrong Background of current issue facing Livestrong Foundation Lance Armstrong – the 7 time Tour De France winner, cancer survivor and founding chairman of the Livestrong Foundation, has been facing a lot of pressure and criticism from the media and the public due to allegations of doping made by the United States Anti Doping Agency (BBC, 2012). On October 17 2012 Armstrong resigned as Chairman due to allegation of doping (Mary, 2012).In November 2012, Lance Armstrong officially stepped down from the board of directors and ended his association with the Livestrong Foundation which was then known as The Lance Armstrong Foundation (Mclaggan, 2012; Vertuno, 2012). However, despite this, the opinion of the people towards the Livestrong Foundation is one of prejudice. Many companies who formally endorsed Armstrong have dropped him from their campaigns. Some of these companies were Nike, Trek Bicycles, Giro , FRS (energy products), and 24 Hours Fitness (Petchesky, 2012).Various reasons were given by the heads of these organizations as to why Armstrong was dropped. FRS Chief of Marketing commented: â€Å"this seems like a good time to part ways† while 24 Hours Fitness stated: â€Å"our business relationship with Armstrong no longer aligns with our company’s mission and values† (Schrotenboer, 2012). These and many more statements were made in regards to the doping allegations. Armstrong’s reputation and image is currently deteriorating rapidly.There are many opinions from segments of society (such as the public and the media,) regarding the Livestrong Foundation after this alleged scandal. Here is a brief overview of the situation from various stakeholders (See Appendix for Livestrong Foundation view): The Public: The public had varied opinions. There has been one section of people who have stood strongly by Lance Armstrong and the Livestrong Foundation. They stand by the fact that the foundation is still about researching a cure for cancer and so it will always be respected in the eyes of the community.Lou Hablas has supported Livestrong for years and worn the iconic yellow bracelet in honor of his uncle, stepmother and friends who have lost loved ones to cancer. The 49-year-old Georgia resident says he'll continue to wear the bracelet despite news that embattled cyclist Lance Armstrong is stepping down as chairman of the charity he founded 15 years ago. But the poster of Armstrong leading his Discovery teammates in the team time trial at the 2005 Tour de France is coming down from his office wall amid news that the U. S.Anti-Doping Agency found â€Å"overwhelming† evidence of Armstrong's involvement in doping as a professional cycler. â€Å"What Lance initiated through the formation of a foundation in his name and efforts through Livestrong far exceed this formal and seemingly final recognition of Lance's fallibility, Cancer su cks and it is much bigger than Lance Armstrong † Hablas said in an interview with CNN (CNN, 2012). The feeling of Lou Hablas mirrors the feeling of millions around the world. While they still continue to strongly support the Livestrong, their respect for Lance Armstrong has diminished due to the doping incident.They are able to separate the foundation from Lance Armstrong and the controversy surrounding Lance Armstrong does not change their opinion on the Livestrong Foundation. On the other hand, there has also been a large segment of the public who have lost their faith in the Livestrong Foundation. Wendy Adams of Manchester, Pennsylvania, and her sisters have been wearing their yellow bracelets since their father was diagnosed with end stage prostate cancer in 2004. When her father died in 2005, the family respected his wish to be cremated wearing the bracelet and spent $200 dollars on the bracelets for family and friends to hand out.Now, she says she can't wear the bracelet with pride anymore because of its connection to Armstrong and the organization. She has taken it off and vows to never again wear it. She says â€Å"Lance is Livestrong, he is the face of hope. And when that face is that of a liar, a manipulator, for me? I can't wear it with pride anymore. † (Ibid) Therefore we see that the public has different opinions regarding the Livestrong Foundation after Lance Armstrong’s doping scandal. But the vast majority of people are able to distinguish between the Livestrong Foundation and Lance Armstrong.They recognize that the Livestrong Foundation is about cancer which is much bigger than Lance Armstrong and the foundation needn’t suffer due to the Lance Armstrong scandal. The Media: The media has been investigating the Livestrong Foundation closely after the Lance Armstrong doping scandal. The Livestrong Foundation has been under intense scrutiny recently. Bill Gifford, a journalist from OUTSIDE magazine, released an article s tating that the Livestrong Foundation doesn’t in fact do much to fund research to find a cancer cure (Gifford 2012).He states in his article â€Å"Equally interesting is what the foundation doesn’t do. Most people—including nearly everybody I surveyed while reporting this story—assume that Livestrong funnels large amounts of money into cancer research. Nope. The foundation gave out a total of $20 million in research grants between 1998 and 2005, the year it began phasing out its support of hard science. A note on the foundation’s website informs visitors that, as of 2010, it no longer even accepts research proposals† (Ibid. ).Gifford also goes on to say that the primary goal of the Livestrong Foundation is to advertise and promote Lance Armstrong as he is the face of the foundation. He says â€Å"I found a curiously fuzzy mix of cancer-war goals like â€Å"survivorship† and â€Å"global awareness,† labels that seem to entail p lastering the yellow Livestrong logo on everything from T-shirts to medical conferences to soccer stadiums. Much of the foundation’s work ends up buffing the image of one Lance Edward Armstrong, which seems fair—after all, Livestrong wouldn’t exist without him.But Livestrong spends massively on advertising, PR, and â€Å"branding,† all of which helps preserve Armstrong’s marketability at a time when he’s under fire. † Such stakeholder viewpoints illustrate that Livestrong has to be careful in all its future endeavors as it is under constant scrutiny due to the doping allegations surrounding Lance Armstrong. This may have serious impacts related to the loss of Livestrong’s reputation and hence the challenge is in disassociating the Livestrong brand from its founder Lance Armstrong.The message must be communicated that Livestrong is about the fight against cancer at a global level, rather than a mere doping scandal by its founder. ————————————————- The key issues identified previously in this report highlight the importance of rebuilding Livestrong’s brand image in a manner that refocuses public attention towards Livestrong’s over-arching agenda and manifesto: To fight cancer with determination in the face of adversity.The following communications plan outlining key aims, objectives, strategies and tactics has been produced with this message at heart. The formal severing of ties with Lance Armstrong, are the first steps taken by the Livestrong Foundation towards this process. ————————————————- PHASE 1 Key Aims * Identify key stakeholders that are currently affected by the crisis, who it may affect and why. * Refocus public attention towards cancer victims and inspirational c ancer fighters supported by Livestrong. Ensure that communication is clear, compelling, continuous, consistent and sustained. * Ensure that engagement, understanding and commitment amongst internal stakeholders is achieved in relation to implementing strategies and tactics to overcome crisis. Promotional Channel: Public Relations Objective: Honest and sincere Acknowledgement of the problem Livestrong is facing, the action taken and highlighting the need to focus on the true adversary – cancer itself. Strategy: Communicate in totality to internal and external stakeholders within the next 6 months.Tactics: 1) Organising a press conference A spokesperson that holds a prominent role in the Livestrong Foundation will address the public. In preparation for the press conference, the spokesperson will be given full media training beforehand in responding to questions by the press such as: What is Livestrong’s current stance on doping? How does Livestrong plan to attract donati ons when its founding member can no longer inspire donors or call on celebrity contacts? Who will lead the organisation now that Armstrong has stepped down?What will be the next steps of the charity? etc. (More questions will be prepared for media training, closer towards the launch of the press conference). The Spokesperson will begin the conference by acknowledging the doping allegations made towards Livestrong’s former founder which have resulted in the foundation formally severing ties with Lance Armstrong. The spokesperson will then, make it explicit that it was a necessary decision made with the true cause at mind – Fighting Cancer, which at the moment is not receiving ull attention by the foundation and its public due to Armstrong’s doping allegations. The spokesperson will highlight the significant difference made by the Livestrong Foundation in its long-term fight against cancer through conducting educational programs emphasising on healthy lifestyle, a nti-stigma campaigns and Grassroots fundraising events; all done in order to raise awareness, increase outreach and facilitate collaboration in an effort to improve the situation of cancer patients.Furthermore, the spokesperson will highlight that it is important for the public to keep in mind these contributions made by Livestrong in the fight against cancer and will advise the public to ‘look at two separate people: Lance Armstrong the cycling champion allegedly turned drug-user and Lance Armstrong the cancer fighter and symbol of inspiration† of which the latter was the reason for Livestrong’s success until this point.Not only does Livestrong reach out to cancer patients, but also to those who look for inspiration, determination and hope, in their darkest hours of need. After these key points are made, the spokesperson will invite the press for a Q&A session. 2) Distributing press releases and feature articles online and offline Firstly, a number of press relea ses will be distributed to key media outlets (offline) and wired agencies (e. g. Reuters online), raising and addressing similar points to that of the press conference.Secondly, feature stories focusing on Livestrong Foundation support given to local and national cancer victims and their families will be distributed (both online and offline) in local and national media outlets. These stories will focus on an angle showing the determination of the cancer victims, survivors and their families and how Livestrong aids them in this journey through emotional and financial support; essentially, communicating in a compelling way to engage the public with Livestrong.Further, by distributing a considerable number of press releases and feature stories online, it would ensure that members of the public will encounter such stories which focus on Livestrong’s positive impact on society, in effect, proving to be a cost effective-method achieving search engine optimisation (SEO). 3) Social m edia engagement Firstly, a video release will be made (utilising YouTube) featuring the incoming board chairman of the foundation – Jeff Garvey, who outlines the next steps that will be taken by the Livestrong Foundation followed by the severing of ties with its former chairman – Lance Armstrong.This would mainly involve giving undivided attention towards the Livestrong Foundation mission in â€Å"providing free financial, practical and emotional support services for cancer survivors and their families. † This video will then be attached to Livestrong’s website, Facebook page, Twitter account and Blog. This will be followed by an invitation to the public to give their honest opinion about Livestrong and suggest ideas about what steps the foundation could take in order to better contribute to its fight against cancer.In addition, a competition will be posted on Facebook and Twitter announcing that the winner who suggests the most creative and engaging idea will have their name as part of the next Livestrong campaign title and the opportunity take part as one of the campaign team leaders. Not only will this type of approach promote symmetrical communication between Livestrong and the Public, but also indirectly suggests that Livestrong is trying its best to move past the Lance Armstrong doping scandal and refocus all its energy towards fighting cancer. ) Establishing an Intranet system for internal stakeholders of the Livestrong Foundation Given the possibility that not all members, employees and shareholders may be aware of the severity of the issue concerning Lance Armstrong’s alleged doping scandal and the strategic action taken to repair Livestrong’s reputation; an intranet will be established to provide the latest information on the issue and steps taken to rebuilding Livestrong’s brand image in a manner that refocuses public attention towards Livestrong’s battle against cancer.The intranet page will b e maintained by a trained team who will monitor current problems, predict any future revelations and watch the movements of public and media opinion closely. This will also provide the opportunity for internal stakeholders to ask questions, post responses, and contribute ideas about the crisis in a community sphere. Measurement and Evaluation Firstly, feedback could be gained from journalists, who will attend the press conference, on whether the responses given by the Livestrong Foundation were sufficient in communicating Livestrong’s future intentions and vision purely focused on battling cancer.The press releases and feature stories will be evaluated in relation to how consistent, clear and compelling they are in producing communication outcomes (e. g. Whether the key message was fully, partially, incorrectly, negative/positively, etc. conveyed . In relation to evaluating the level of public engagement with social media, they will be measured according to the tone of commun ication. For example, whether the blog, twitter and Facebook responses by the public, were positive, balanced, neutral or negative.Furthermore, this will also be measured by tracking levels of public engagement. E. g. whether target audiences are: Lurking, Casual, Active, Committed or Loyal. The activity on the intranet will be measured in a similar fashion although it would also include tracking the amount of internal stakeholder response within a period of 6 months. Given that the above strategies and tactics are successful and meet the objective, the Livestrong Foundation can move towards the 2nd phase which involves creatively utilising the promotional channels of Advertising and Viral Marketing.Note: The above strategies were considered after examining the cases of Sony and Dell when they faced a product defect issue where they avoided damages to their reputation through responses received through their established crisis website (Larkin and Register, 2008:63) Further, the case concerning the rebranding of Scope – the charity organisation for cerebral palsy – was also examined in detail (Scope, 2012). ————————————————- ————————————————- PHASE 2 Promotional Channel : AdvertisingObjective: Ensure a new and improved understanding of Livestrong by the public. Strategy: Creating a new advertisement to broadcast Livestrong’s new image. Tactics: Two different advertisements will be made for two groups of audiences. 1. Advertisement directed towards the general public: This advertisement features a little girl frolicking happily in a garden. The whole frame is colourful. Suddenly, a monster called â€Å"cancer† appears, and a thunder storm occurs. The little girl begins to cry in fear. At this time, a large number o f Livestrong wristbands appear to fight the monster and protect the little girl.The wristbands knock the monster down and sunshine prevails. The slogan: Let Livestrong Protect the One You Love then appears . The advertisement will be shot in the style of caricature which makes it simple and easy to comprehend. Even children will be able to understand the advertisement; therefore, the target audience is broadened. This inspiration comes from Fresh Start—the campaign which is called up by Welsh government to stop smoking in cars. This campaign used children as their starting points and inspired people stopping smoking. ((2012). GOLLEY SLATER LAUNCHES FRESH START WALES. Online] Last accessed December 13th). 2. Advertisement directed towards cancer survivors and their families The second advertisement is aimed at encouraging people who have suffered from cancer to be hopeful and to trust Livestrong. This advertisement will focus on the reliability of the Livestrong foundation. Th e advertisement has a black and white tone to portray people’s emotion after knowing that they get cancer. This scene will simply focus on the facial shots of people who have just found out that they have cancer. Sad music plays in the background to enhance the affect.After this, the Livestrong wristbands appear. The yellow color of the wristband symbolizes sunshine and how Livestrong can brighten the lives of those who suffer from this terrible disease. The advertisement ends with the frame being full of sunshine and smiles on the faces of the people who suffer from cancer. Platform: These advertisements will be played in public places, such as subway stations and bus stops because it has a wider reach in terms of viewers. Some posters with a similar theme will also be used as outdoor advertisements. There will also be a donation box near the screen.This is done because people will feel the need to donate immediately after viewing such a touching advertisement. Prediction: I t is estimated that 6 months into the advertising campaign, the awareness of Livestrong will increase by 30%. Also, the donation towards the Livestrong foundation will also increase about 10%. Promotional Channel : Viral Marketing Objective: Increase people’s awareness of Livestrong Strategy: Take advantage of social media, such as Youtube, Twitter and Facebook to let more people know Livestrong’s new image Tactics: 1. Flash MobThere will be several â€Å"flash mob† activities in target cities, such as London and Manchester, which means organizing about 50 people at the city landmark wearing Livestrong apparel and repeat the Livestrong’s slogan. All this will be recorded and broadcasted onto social media sites. This tactic is inspired by the popularity of Psy’s Gangnam Style. Gangnam Style’s shoot to popularity is attributed to the effective use of social media through which it gained global recognition. 2. Twitter and Livestrong Another act ivity, mainly to do with Twitter, can also be undertaken.A custom designed poster stating â€Å"Keep Calm and Trust Livestrong† will be posted by Livestrong. Every time the poster is re-tweeted, Livestrong will donate 1 pound towards a cancer rehabilitation center. This action will not only help people who suffer from cancer, but will also pique the attention and interest of the people and increase brand awareness. Platform: Social media will be the main platform for this strategy as it is currently more popular than traditional means of marketing. Social media will reach a very wide range of audience†¦ from the youth to the older generation.Also, the broadcasting speed of social media is faster compared to broadcasting via traditional means. ————————————————- Prediction: In this six months campaign, Livestrong’s exposure rate on social media will increa se and people will have more positive aspects to discuss about Livestrong. ————————————————- Word Count: 3,275 References British Broadcasting Corporation (BBC). (2012), â€Å"Lance Armstrong receives US Anti-Doping Agency charges. ’ [Online] Available at: http://www. bbc. co. uk/sport/0/cycling/18435771 [Accessed: 1 December 2012].Burleigh, N. (2012), ‘Will Livestrong Stay Strong? ’ [Online] Available at: http://www. bicycling. com/news/featured-stories/will-livestrong-stay-strong? page=0,1 [Accessed: 1 December 2012] CNN (2012) ‘Livestrong bracelet: To wear or not to wear?. ’ [Online]. Available at: http://www. cnn. co. uk/2012/10/18/living/lance-armstrong-livestrong-legacy/index. html [Accessed: 1 December 2012] Gifford, B. (2012), ‘It's not about the lab rats. ’ [Online]. Available at: http://www. outsideonline. com/outdoo r-adventure/athletes/lance-armstrong/Its-Not-About-the-Lab-Rats. tml? page=all [Accessed: 1 December 2012]. Golly Slater (2012), ‘Golly Slater launches Fresh Start Wales. ’ [Online]. Available at: http://www. golleyslater. co. uk/services/public-relations/news/news-detail. php? id=976 [Accessed 29 November 2012] Livestrong (2012) Livestrong Milestones [Online]. Available at: http://www. livestrong. org/Who-We-Are/Our-History/Milestones [Accessed: 10 December 2012]. Maclaggan, C. (2012) ‘Exclusive: Livestrong cancer charity drops Lance Armstrong name from title’ [Online]. Available at: http://www. chicagotribune. om/sports/olympics/sns-rt-us-cycling-armstrong-livestrongbre8ae000-20121114,0,6273785. story [Accessed: 1 December 2012]. Mary, P. (2012) ‘Armstrong Is Dropped by Nike and Steps Down as Foundation Chairman. ’ [Online]. Available at: http://www. nytimes. com/2012/10/18/sports/cycling/lance-armstrong-dropped-by-nike-steps-down-as-chairman -of-his-charity. html? pagewanted=all [Accessed: 1 December 2012]. New York Times (2012) ‘Times Topic: Lance Armstrong. ’ [Online]. Available at: http://topics. nytimes. com/top/reference/timestopics/people/a/lance_armstrong/index. tml [Accessed: 1 December 2012]. Petchsky, B. (2012), ‘A full list of the brave brave companies that dropped lance Armstrong only after Nike did. ’ [Online] Available at: http://deadspin. com/5952679/a-full-list-of-the-brave-brave-companies-that-dropped-lance-armstrong-as-an-endorser-only-after-nike-did. [Accessed: 1 December 12]. Regester, M. & Larkin, J. , (2008) Risk Issues and Crisis Management in Public Relations: A Casebook of Best Practice. London: Kogan Page. Schrotenboer, B. (2012), ‘Livestrong: Only 8 donors asked for their money back. ’ [Online]. Available at: http://www. usatoday. om/story/sports/cycling/2012/11/12/livestrong-lance-arms trong-doping/1700831/ [Accessed: 1 December 2012]. Scope (2012), â₠¬ËœThe Spastics Society to Scope: The story of the name change and relaunch November in 1994. ’ [Online] Available at: http://www. scope. org. uk/sites/default/files/pdfs/History/Scope_name_change. pdf [Accessed: 1 December 2012]. Vertuno, J. (2012) ‘Lance Armstrong Cuts Formal Ties to Livestrong, Resigns from Board’ [Online]. Available at: http://www. therepublic. com/view/story/c98e415cc01346f19a7a67a12ead195f/CYC–Armstrong-Livestrong [Accessed:1 December 2012].Wall Street Journal (2012) Statement by Lance Armstrong [Online]. Available at: http://online. wsj. com/article/SB10001424052702303734204577464962634804348. html [Accessed: 1 December 2012]. APPENDIX The Livestrong Foundation Perspective of Lance Armstron’s Allegations: The Livestrong Foundation was initially very supportive of Lance Armstrong during the doping incident. However, Lance Armstrong stepped down from the board of directors of the foundation and ended all association with Livest rong. This was done to ensure that the negative publicity directed towards Lance Armstrong would not affect Livestrong’s popularity.The incoming board chairman, Jeff Garvey, said that Armstrong was distancing himself from Livestrong to protect it against any damage resulting from his doping controversy. â€Å"Lance Armstrong was instrumental in changing the way the world views people affected by cancer,† Garvey said. â€Å"His devotion to serving survivors is unparalleled and for 15 years, he committed himself to that cause with all his heart. † (The New York Times 2012). Livestrong CEO Doug Ulman, a cancer survivor himself, sees the scandal as little more than a sad distraction from a noble cause, and he sees no need for a formal distancing from Armstrong. This organization has never been stronger in terms of fulfilling our mission and the support that we receive from literally millions of people,† he says. â€Å"We are trying to tackle a global problem, the number one cause of death around the world. And so the investigation unfortunately has become a distraction from our mission. We are literally, positively changing lives every day and we have so much more to do and to be pulled away and distracted even for 10 minutes is

Are the Differences Between Management and Leadership Essay

What are the Differences Between Management and Leadership? † Management and leadership are closely related but is not the same thing. They are both necessary and complementary to each other. In the corporate world, there are vastly different jobs that require different skills. There are similarities with the two and you can hardly become a great manager without good leadership capabilities. Being a manger does not always mean that the person has the natural ability to lead. And being a good leader does not always make for the best manager. Leaders can be found in all departments of the workplace. A person can be called a leader if he can successfully influence and encourage colleagues to work toward and objective in which the goal is beneficial to the group. The leader’s job is basically to inspire and motivate. Leadership is an ability that is difficult for some people to learn. However, they may not be able to handle difficult business related issues that a manager might have to handle. A manager is considered a leader by definition of the position. Employees are required to follow this individual as required in their job descriptions. Managers offer stability and confidence in organization. Managers are good at delegating tasks and achieving results, but may not be the first person employees look to for guidance. Management may be described as doing things right, while leadership is doing the right thing. Managers have subordinates, while leaders have followers. Employees may not feel a sense of loyalty to a manager, but will stick with the leader because they have a greater sense of belief in them. Managers who don’t have true leadership skills lack certain qualities that are attractive to followers, such as charisma. Being able to blend the styles of a leader and a manager represents a distinguished skills set. That’s why people with the ability to be leaders and mangers are found at the top of all successful companies. The most successful businesses and teams have strong leaders who know how to motivate employees and managers to the results needed to achieve success. I personally think businesses should carefully review applicants for management positions to make sure they have the abilities to lead as well as manage. If the applicant does not possess all of the qualities needed to be a great manager then perhaps they are not the right person for the job. I would not want a manager who you could not depend on in times of crisis and conflict. http://guides. wsj. com/management/developing-a-leadership-style/what -is-the-difference-between-management-and-leadership.

Strategic Management of Ford Motor Company Essay

Strategic Management of Ford Motor Company - Essay Example The paper tells that one of the key challenges of firms operating in the modern market is to locate the resources required for the development of their activities. The recession of 2008 onwards has led firms in all industries to develop innovative strategies – aim to compete with their rivals and stabilize their position. The industries, which have already reached their higher level of growth, like the automotive industry, are expected to proceed to key strategic measures in order to ensure their survival. In the last two years, the performance of the automotive industry indicates that the specific industry has already reached a high level of performance – compared to the most industrial sectors worldwide. It is for this reason that most firms of the specific industry have started to report losses – which, in certain cases, are extremely high. However, the survival of the firms operating in the specific industry can be achieved through additional measures  œ such the ones developed by managers in Ford Motor Company. Ford was first established in 1903. Since then, the firm has managed to expand its activities at such point, that it is now considered as the third major competitor in the global automotive industry. The firm’s growth is highly based on its brands, which are well known in the global automotive market. On the other hand, the firm has managed to achieve a stable growth, a fact that indicates its ability to transform its strategies in order to meet the market trends. The performance of the firm during the first quarter has been encouraging – compared 2008 when the effects of the crisis on the organizational profitability were made clear. The firm’s external environment should reveal the changes that should be promoted across the organization aiming to ensure the stabilization of the firm’s performance. The major competitors of the firm in the context of the global market are General Motors, Chrysle r, and Toyota – after the bankruptcy of the two first companies, Toyota has been left as the main competitor of Ford.

Customer Value Measurement Essay Example | Topics and Well Written Essays - 2000 words

Customer Value Measurement - Essay Example New ways are needed to achieve an edge and to stand one step ahead of others (Keller 2003). In the phase of increasing competition, many corporate mission statements set customers as the focus of an organisation's business activities, and key thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base (Johnson et al 2005). At the other end, some companies are paying performance premiums. According to Aaker & Keller (1990) delivering superior value to carefully targeted customers seems to be the generally accepted path to sustained profitability (Keller 2003). In the light of the above, this essay essay is an attempt to clarify how developing a customer orientation affects the profitability of firms by referring to the fundamental elements of a customer driven marketing strategy: segmentation, targeting and positioning. It also presents a comprehensive understanding of the customer and the customer value imperative by using relevant examples. As competition grows bigger, more and more organisations try to maximize customer value in order to achieve their full potential and get a competitive edge. There are several reasons for this awakening and change in perception (Porter 1990). Realizing the role of 'customers' and 'customers' equity, companies strive at satisfying their customers through the creation of brand equity (Aaker 1990). Customers are important stakeholders of a company. According to Sacconi, (2004), customers need quality products and services as well as increased customer value and customer satisfaction (Sacconi 2004). A customer is one who buys and uses goods and services. They are individuals who are affected by or who affect the product and service supplied, and bear the value and cost of a company's activities (Sacconi 2004). In most companies, customers are seen as the most important assets. For example, Berry & Parasuraman (1991) argue that, It is easier - and much cheaper - to keep existing customers than to get new ones. To Berry et al. (1990), the benefit from achieving satisfied and loyal customers stems from the fact that, the willingness for future repurchases will be much higher for satisfied and loyal customers than for dissatisfied and indifferent ones. Despite this awareness concerning the importance of customer satisfaction, it is beyond the ability of many of today's companies to maintain satisfied customers (Aaker 1989). To fully understand the meaning of 'customer value' and customers value creation, Aaker (1990) argues that this should be approached from the customer's perspective. Today, most companies have realized the importance of satisfied custome

International Business Essay Example | Topics and Well Written Essays - 1500 words - 14

International Business - Essay Example Corruption refers to abuse of power or position by government officials in order to attain illegitimate personal gain. Corruption is a complex political, social and economic phenomenon that affects all nations since it undermines democratic institutions and slows down economic development since investors shy away from investing in countries that are deemed to be corrupt. Corruption occurs in the forms of bribery, nepotism, extortion, patronage, embezzlement and influence peddling. Corruption is closely linked to organized crimes such as drug trafficking, terrorism and money laundering. Corruption is perceived to be widespread in some nations than others due to the historical, cultural and differing levels of economic development. Countries with more developed economies and histories of British rule are perceived to be less corrupt due to traditions and values of democracy and good governance inherited from Britain rule. The definition and legislation on corruption differs across nations since there are different sanctions and penalties for engaging in corruption. Some countries define corruption as the bribery of public officials while others define corruption as the soliciting and acceptance of gifts. In other nations, corruption is broadly defined as the abuse of public office for personal gain while others define corruption as the possession of unexplained wealthy. In many nations, the civil and criminal law provide for provisions that determine corruption related offenses and enforcement measures such as penalties and jail terms for engaging in corrupt activities. In other countries such as emerging markets, there are anti-corruption agencies that are responsible for investigation of corruption-related offenses and making recommendations for prosecution of the offenders. Active and passive corrupt practices are criminal in countries like Singapore, China and Hong Kong and bribery of public officials in

Role of the U.S. President Franklin Delano Roosevelt on America and Essay - 1

Role of the U.S. President Franklin Delano Roosevelt on America and the World - Essay Example This paper illustrates that Franklin Delano Roosevelt had a very long presidency, lasting three terms, which is unusual since American presidents normally only have one or two terms.   He belonged to the Democrat party and introduced many reforms to include the famous â€Å"New Deal† which aimed to get people back to work after the Depression. In his work abroad he was respected for his diplomacy and he certainly is responsible for helping to bring the Second World War to an end. Franklin Delano Roosevelt, as his family name suggests, belonged to a family of Dutch descent. They traced their roots back to the early settlers of America in the region in and around New York and to a Dutch farmer called Nicholas Claes Martenzen von Rosenvelt who came from Holland right at the beginning of the settlement period, in the early 1600s. Franklin D. Roosevelt’s parents were wealthy and they lived in the upper-class Hudson River area. Both James Franklin and Sara Delano had inheri ted money and a good education from their parents and the young Franklin grew up in a happy home, very much loved especially by his mother who was much younger than her husband. After homeschooling by a series of governesses until the age of 14, Roosevelt attended Groton, a private educational establishment led by the school’s founder, Endicott Peabody. This was a very privileged schooling: â€Å"At a time when most educational reformers stressed democracy and equal access to schools, Peabody attempted to build a school where the ‘best families’ of New England would send their sons to prepare them for future positions of leadership.† In some ways, this background excluded the young Roosevelt from the hardships that other people suffered, such as poverty and exclusion from the good things in life, but on the other hand, the Christian morals and hard-working ethic of Peabody’s school gave him a good moral basis for his future life. Having an educated mother who spoke several languages also allowed the young Franklin D. Roosevelt to develop an awareness and understanding of other countries which would come in very useful during his later career.

Difficult Campaign Speech or Presentation Example | Topics and Well Written Essays - 750 words

Difficult Campaign - Speech or Presentation Example I am the one who grew up and spent all of my life in this neighborhood. I went to the school not as famous and considered as one of the best institutions around town, like the one my opponent running for the mayor has attended. Instead, I attended local public school and then joined a state college to further my studies. It was a place where I learned my values from my two loving parents i.e. mother and father. This is a place where I learned that it’s not your name what matters but what you get done. This is the place that taught me that one usually gets more done if he is working with the people than fighting with them. Last but not the least, it also taught me that one should always be prepared to bring a real difference in people’s lives by taking on tough fights and challenges and that is what matters the most. I would like to announce that if I am elected as a mayor, I will seize this opportunity to address the challenges of this hometown. I will try my best to re vamp the education system. Having worked with children, I personally feel that education system is the most important area to focus upon and to work hard for its improvement. I have also noticed that many of our school teachers are leaving and I believe it is because the high cost of living that is driving them away as they are not able to cope up with high living standards as compared to others. Moreover, there are other challenges too, for instance, increased traffic in our hometown is one of the most distressing problems as it makes difficult to get around. Therefore, if I am elected as a mayor, I will fix this problem and green technology can then lead the way. I will also try to install trolley rails around town going to and from popular places in our town. I will further try to make transport easier for the tourists and commuters by providing them with â€Å"rent-a-bike† stations for using bikes which will be located throughout the town. Not only this, but ferry service would also be provided to ease transportation. My Dad accomplished many things in his career and throughout his life and accomplishments, I learned something fundamental from him i.e. public service matters and people matters therefore value people! I am always very proud of my family name and my father’s legacy. However, this does not mean that I will stand for a Mayor on my father’s abilities but, I stand for Mayor based on the record of services that I provided to the people of Eugene Oregon. When it comes to my personal record, I have been arrested once for possession of a pot but was released later without trial for lack of evidence. However, this is all part of a life’s journey and is laced with ups and downs. At present, I have become well to do through part ownership of a used car lot and a chain of hair dressing. Furthermore, I have five times been selected by the people of this town for two of the most important offices in this town i.e. Town Attorney and Chief Fiscal Officer. Both jobs have prepared me in a unique way for the job I seek today. I believe I have the perfect experience where it counts the most. I am proud of my record but I still think that I am not done yet. There are still many goals and challenges to be tackled and worked upon, and as a Mayor I will keep on offering new ideas. However, we can work together on the issues we are currently facing in Eugene Oregon. We CAN improve our education systems and we CAN reduce traffic to make this town a better place to live. I

FAMILY HOUSEHOLD Essay Example | Topics and Well Written Essays - 500 words

FAMILY HOUSEHOLD - Essay Example To begin with, not all married men are better off, only because humans can never be classified in one way or another definitively. However most men do get a better life in marriage than women. First, one must look at traditional chores men and women have in a marriage. In a traditional marriage of a century ago, a man worked and a women kept house. Mens chores around the house consisted of fixing leaking sinks, taking out garbage, and mowing the lawn once a week in the summer time. Women cleaned the house, gave birth, and took care of the children. Now women clean the house, give birth, take care of children, mow the law, and have a career. Men still take out garbage and mow the law, if they feel like it. Since women can do it all, if the lawn doesnt get mowed, they will do it. This is what becoming equal to men has gotten women, less respect and more responsibilities. Some men help divide the household chores 50/50, but that is rare. The result is â€Å"great frustration in trying to balance wage-work responsibilities and the demands of housework and motherhood"(Lancaster, 120). This is the first reason married men have it better than married women. Even if a married man is not employed, he rarely takes on the responsibility of a household like a woman. One author reports, "interviews was that women still had major responsibility for housework and child-care - even where husbands were unemployed† (Dryden, 17). The traditional roles of marriage still remain, despite reversal of roles in a marriage. The responsibilities of the household still fall on the married women. Men consider cleaning, doing dishes, and changing babies as womens work. This gives them an out on household duties. Yet another reason married men have it better than married women. Beyond housework and chores, married women will always bear the children. Married men take for granted their wives reproductive

PETA and the true about animal rights Essay Example | Topics and Well Written Essays - 500 words

PETA and the true about animal rights - Essay Example Through the years PETA has made advances for animals that are abused by individuals, corporations, and governments throughout the world. The organization has won several cases against animal abusers and has convicted several animal researchers. One popular example is the Silver Spring monkeys case where researcher Edward Taub experiments 17 macaque monkeys inside the Institute of Behavioral Research in Silver Spring, Maryland. Alex Pacheco spied the lab and took pictures of monkeys tied-up inside the lab. The pictures were then turned-over to the local police as evidence. The lab was raided by the police and researcher Edward Taub was convicted of several counts of animal cruelty and abuse. PETA was founded by Ingrid Newkirk and Alex Pacheco in March 1980. It receives donations from its multi-national companies and individual donors. The organization’s financial statements revealed millions of dollars of revenues a year. This is likely coming from millions of dollars worth of cash and non-cash donations from its donors worldwide and the rest came from its fund raisings for animal rights. PETA says that their revenues will not be kept for themselves but for the improvements of their programs on pursuing their global missions. Thus, its income tax returns revealed donations and grants to and from various individuals and non-profit organizations working on animal rights. They say the money they have in the organization will be spent for the benefit of the animals and the improvement of their life as living things.

International Financing Reporting Standards Research Paper

International Financing Reporting Standards - Research Paper Example Although the US is yet to follow suit, there is a growing enthusiasm towards their adoption by the SEC. Such a move will concequently make it mandatory for the organizations to report using these standards. Currently, efforts are underway to implement the international financial reporting standards in the US accounting field. This is in appreciation of the importance of these standards in cushioning global firms in times of economic hardships. Adopting such standards will undoubtedly assist firms in reducing costs associated with financial reporting since the standards are globally acceptable. This will also enhance transparency in financial reporting as well as offer a standard comparison platform on performance. In addition, it will reduce the time taken by most multinational organizations in reporting their financials. Investors will also benefit from this development since information about performance of companies will be available to them in similar standards. This paper seeks to show how effects of globalization and increased market interdependence necessitate the need for all countries to have common reporting standards. In addition, the paper will outline the financial benefits associated with a common reporting standard in the context of international business. Reasons for the adoption of the IFRS by SEC Unification of the world reporting standards Poon (2012) observes that in 2010, the SEC took a stand on the adoption of the IFRS in the US. Citing the advantages of the use of the IFRS for the United States firms, the SEC decided to embark on a plan to ensure that all organizations in the United States adopt the IFRS. The unification of the reporting standards seeks to put the United States in the same accounting standards as the rest of the world. According to Erchinger& Melcher (2007), the world’s capital markets are likely to gain from the convergence of the world financial reporting standards. The quality applied while drafting these standa rds, their comprehensive nature, and the extent of their application are the main reasons why the world hopes to benefit from these standards (Erchinger& Melcher 2007). SEC in determined efforts to protect the interests of the United States investors sought to implement these standards amid stiff objections by some firms. The first attempts to reconcile the standards of the IFRS with America’s GAAPs in 2007, focused on changing the SEC’s policies so as to accommodate the adoption of the IFRS (Erchinger& Melcher, 2007). Preventing investors in economic crisis In the last decade, the American economy suffered one of the worst economic crises ever in its history. The financial sector being the worst hit sector of the economy showed the laxity of the various state agencies in implementing the policies of the country. Several financial organizations in the country were almost shut down while those that survived were faced by a myriad of problems. This crisis helped reveal a number of problems in the financial management in both the public and sector. These problems were closely

Immanuel Kant Essay Example for Free

Immanuel Kant Essay HUME’S FORK David Hume divides knowledge into two classes: ‘relations of ideas’ (i. e. tautologies) and ‘matters of fact’ (i. e. empirical statements). His book concludes (on p. 165) with the following paragraph: â€Å"When we run over libraries, persuaded of these principles, what havoc must we make? If we take in our hand any volume; of divinity or school metaphysics, for instance; let us ask, Does it contain any abstract reasoning concerning quantity of number? No. Does it contain any experimental reasoning concerning matter of fact or existence? No. Commit it then to the flames: for it can contain nothing but sophistry and illusion. † LOGICAL POSITIVISM Hume’s Fork was updated by modern logical positivists (such as A. J. Ayer, Antony Flew and Gilbert Ryle) who proposed the Verification Principle. This claims that sentences are only meaningful if they are tautologies (which are true because of the definitions of the terms involved, e. g.a square has four sides, six is bigger than four), or if they are in some way empirically verifiable (i. e. connected with actual experience, e. g. Harold lost at Hastings, electrons are both particles and waves). Any other statements will be meaningless, because their truth is not decided by either definitions or evidence. According to Ayer, this makes discussion about religion and morality meaningless. Religious statements like God is love are not false, they are incapable of being either true or false. SIX IMPORTANT CONCEPTS Area Term a priori Meaning Knowable before experience, through thought alone Empirical; known through experience has to be true (in all possible worlds) capable of being either true or false tautologies; statements concerned only with meanings of words statements concerned with information about the world Example five is bigger than four Problems Can anything be known without experience? (e. g. maths). Could you know something about the world a priori? Could someone (e. g. God) know everything a priori? Is it possible that all truths are necessary, even empirical ones? Or is it possible that there is no such thing as a necessary truth? It may be arbitrary which terms are definitions, and which are claims about the world. We might reorganise a language so that the analytic truth became synthetic, and vice versa. Epistemology a posteriori necessary Metaphysics contingent analytic Language synthetic cars have four wheels air is a gas air contains oxygen there’s a stone in my shoe triangles have three sides Hume and the Logical Positivists believe that these terms fall strictly into two groups: a) a priori-necessary-analytic, and b) a posteriori-contingent-synthetic. This means that if something is necessarily true, this is because it is true by definition, and can be known by thinking about it. If a statement is about the real world, then it could be false, and you need experience to know it. (This would immediately rule out the Ontological Argument for God). These empiricists claim that a priori synthetic truths are impossible, whereas rationalists like Kant think you can know things about the world just by thinking about them (e. g. maths). APPLICATION TO RELIGION Statements are only meaningful (it is claimed) if they are true by definition, or if they are empirical. So which group do statements about religion fall into? If they are only true by definition, then outsiders can ignore them because religion is just an arbitrary game like chess. If they are empirically verifiable, then sceptical philosophers can demand to see some relevant evidence. Flew’s Gardener Parable (p. 225) is a demand for evidence. If none can be offered, then the claim is meaningless (not ‘false’). DEFENCES OF RELIGION The most basic defence is to deny empiricism (consider the views of Plato, Anselm, Descartes and Kant). Logical Positivism can be attacked. Its main problems are 1) the Verification Principle can’t be stated clearly it is either so precise that it eliminates sensible conversation, or so vague that it allows religious language; 2) the Verification Principle must itself be either a tautology or empirically verifiable; 3) a sentence like God is love can be proved meaningful by connecting it very vaguely and remotely with some empirical observation. BRAITHWAITE’S DEFENCE Braithwaite (following the later Wittgenstein) claims that language is meaningful, not if it passes the Verification Principle, but if it has an appropriate use in actual life. The main use of religious language is to express the intentions of believers. In Braithwaite’s view this is primarily a moral intention. Because a sentence like God is love is part of a way of life in which the speaker is committing themselves to live by love, the sentence is meaningful. HICK’S DEFENCE (‘ESCHATOLOGICAL VERIFICATION’) Hick’s defence is that religious language is a commitment to something which will happen in the future, and so it cannot be verified now (e. g. decimals of ? not yet discovered). He tells the parable of the Celestial City (p. 26). He discusses problems with knowing in an afterlife whether religion has indeed been verified, but clearly it could be. Suppose, for example, that we confronted God, and were overwhelmed by his love? Such faith in the future may be open to other objections (‘why believe this? ’), but the claim seems at least to be meaningful (just like Aristotle’s problem about the truth today of ‘there will be a sea fight tomorrow’), because Hick has shown that there is some (future) evidence which is relevant. Minimum reading: The Existence of God (ed. J. Hick) pp. 217-220, 225-27, 239-41, 258-60.

Investment of Mutual Funds in Pakistan

Investment of Mutual Funds in Pakistan Chapter 1 Introduction 1.1 Introduction 1.2 Purpose of the Study 1.3 Research Objective 1.4 Research Methodology 1.5 Data Sources 1.INTRODUCTION 1.1 Introduction Mutual funds can play a significant role in the growth of an economy of any country. Mutual funds are a preferred investment destination for any individual/ organization as the fund houses offer not only the expertise in managing funds but also a host of other services. Not too many years ago, mutual funds were simply broad-based investment instruments created to simplify the details involved in investing in separate securities. Mutual funds also provided a greater measure of safety through broad diversification and the kind of top notch professional management that is generally out of reach for the small shareholder. Today, however, mutual funds are well specialized and present almost limitless diversity. The types of mutual fund portfolios available run the range from conservative to aggressive, from stocks to bonds, from domestic to international portfolios, from taxable to tax-free, and from virtually no-risk money market funds to high-risk options funds (Jacobs, 2001). If we come across at mutual fund market of a developed country, we can see that their investment in the mutual fund industry is higher as compared to their bank deposit base, which shows the potential of growth of mutual funds industry in Pakistan. This comparison with other countrys Asset Management Companies (mutual funds) indicates that Pakistans Asset Management companies are not playing the role that it should play. This gives rise to many questions in ones mind. For instance Why are the Pakistans Asset Management Companies not doing well and Why Pakistans Asset Management Companies are not that much competent? The reason is that mutual funds industry in Pakistan is still in its immature stage and investment options are limited to only equity, government security funds, fixed income and money market Funds. With the maturity in the industry and by the passage of time, the investors may have the options to diversify investments into commodities, real estate and other avenues. Today, the greatest challenge faced by the Asset Management Companies is the lack of awareness about the Mutual Fund products by general public. Lack of awareness by the individuals for mutual funds is a dilemma. The reason is that people dont think out of the box. They dont go for any other avenue to keep or save money except banks and on the other hand banks invest in different avenues such as mutual funds, TFCs, stocks, Government bonds, treasury bills etc. So the question arise that why do the individuals always invest their money in banks; why do they dont want to invest other than a bank like in mutual funds. Investing in mutual funds can give them better returns as compared to the banks. The reason is that the individuals are unaware of the better returns, benefits and security they can get by investing in mutual funds. So far, mutual funds have failed in bringing awareness to the individuals. Due to unawareness individuals hesitate in investing in mutual funds. Individuals should be given awareness about the functions that mutual funds perform. Mutual funds process can be better understood in a form of a cycle which i s presented below: In 2008 before recession the Asset Management Companies were doing well, they were building individuals confidence for investing in mutual funds by making individuals aware of Mutual Funds and its benefits along with the higher profitability margins it offers. But recession and the regulators for Asset Management Companies took them to the initial stage again where people were not much confident about investing in mutual funds because giving ones hard earned money into someone elses hands requires utmost faith and a sense of trust. 1.2 Purpose of the Study To highlight those points which are creating negative impact on investor this creates ambiguity when the investor wants to invest in mutual funds. To identify the causes due to which the current market of mutual funds is not growing. To illustrate the basic distinctiveness in operating styles, management and research resources between ASSET MANAGEMENT COMPANIES other Investment Companies. To highlight peoples preference of the Asset Management Company while investing in mutual funds. 1.3 Research Objectives The paper in detail contains the theoretical framework supporting the research objectives. The secondary data is useful in explaining the research objectives and the primary data is also importance as it gives the picture to explain the dilemma in the mutual funds industry. 1.4 Research Methodology The secondary and primary source of data was used in this research, visits of different websites specially the website of MUFAP helped in a great manner to streamline of research work, however few individuals whom we met and ask difference sort of questions for the research gave us valuable information about the past and present situation. The different sources of by which we gathered the data are listed below, 1.5 Data Sources The desired data is collected from the following sources: Karachi Stock Exchange Asset management companies Annual Reports Asset Management Banks Security Exchange Commission of Pakistan State Bank of Pakistan Chapter 2 LITERATURE REVIEW 2.1 Introduction 2.2 Mutual Funds Industry 2.3 Why mutual Funds? 2.LITERATURE REVIEW 2.1 Introduction Chapter 2 focuses on the theoretical approach of mutual funds industries. In the literature review a comprehensive discussion will be performed on the working of mutual fund industries, the types and categories of mutual fund industries and the dilemma that mutual fund industries are facing. The chapter also studies that how investing in mutual funds is better or more beneficial than investing in any other avenue, the factors that differentiate mutual fund industries with other financial Intermediaries and the mutual funds cycle. 2.2 Mutual Funds Industry The mutual funds industry is a secure and better way of investing money. The conventional style of saving money is by keeping them in banks. However, the diminishing bank rates are even lower than that of the rate of inflation and so it may not be a very good choice. The next option could be putting the money in the market but this requires a great deal of knowledge. Investing money through mutual funds is trouble-free and good for small ventures. A mutual fund is a financial institution that allows a group of investors to pool their money together with a predetermined investment objective. The mutual funds have specialized fund managers who are responsible for investing the pooled money into specific kind of securities (usually equity or fixed income securities). The manager uses the money to buy bonds, stocks or other securities according to specific investment objectives that have been established for the fund. In return for putting money into the fund, one can receive either units or shares that represents proportionate share of the pool of fund assets. In return for administering the fund and managing its investment portfolio, the fund manager charges fees based on the value of the funds assets. In simple words, a mutual fund is a pool of money that is managed on behalf of investors by a professional money manager. It includes a group of well qualified people who can guide and invest the money of the unit holders appropriately. When one invests in a mutual fund, he / she is buying shares (or portions) of the mutual fund and becomes a shareholder of the fund. Since mutual fund is a pool of money, different investors invest in it at a time and the total amount collected by all the investors by the mutual fund manager is then invested in different avenues. Be it a money market, stock market, financial institutions, government securities, banks or / and other avenues. The fund manager may invest in more one than avenue at a time which depends on the category defined. Before investing the gathered amount by the investors, the mutual fund manager has to consider and calculate all the important facts and figures that could create more and more profit for the investors who have invested in the mutual fund. After the fund manager has invested, he/ she gets returns which are then distributed to the investors according to their shares in the mutual fund. It is therefore essential to look out for the best mutual fund to obtain maximum returns. The flow chart below describes broadly the working of a mutual fund: Mutual fund provides numerous advantages to its users. One of a great benefit of mutual funds compared to stocks is their major characteristic of diversification. This means that mutual funds invest in many different stocks and in this way balance the risk you may encounter. Additionally, the fund managers may decide to invest in companies from different sizes and industries. This is done in order to balance the downturns in a particular investment with the upturn in another. The basic duty of the management of any firm and the company is to maximize the business and the wealth of the shareholders as well as the sustainability of the owners of the company. The management of the mutual funds is charging the management fee for this purpose. The growth of the mutual funds which we have examined here is based on the determinants which are affecting the growth of the mutual funds and is dependent on the negative and the positive impacts of these determinants. We worked through two models for investigation of this relationship of growth. The two models are comprised of fixed effect model and the cross section model. Most of the results are drawn by these models provided same results except for some factors. Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (one doesnt have to figure out which stocks or bonds to buy). 2.3 Why mutual Funds? Mutual funds are used as a gauge to operate economy effectively and efficiently, they help central banks in implementing their monetary policies, organizations to go through financing attained through mutual funds and banks to mobilize the investment or the cash. Mutual funds have become essential for the growth of an economy as it is a source of money mobilization in the country. Mutual funds mobilizes money in a country in such a manner that it deals with almost every available investment options. Mutual funds help in regulating money through investments in stock market i-e via purchasing shares they are rolling the money to the companies. By investing in debts (long term financing), Term Finance Certificates / Sukuk they are mobilizing cash and enhancing the company. Moreover a growing company can raise its countrys economy with the help of mutual funds. Along with the investments in money markets, mutual funds invest in banks and government bonds also. Another rationale to invest in mutual funds is that its conservative nature offers a hedge against loss and allows the investor to climb into other vehicles that may be more risky. That way a retired investor can try to make some money in mutual funds without putting at risk their future. Also by being part of a mutual fund portfolio, the senior citizens have a chance to view how the various stocks that make up the mutual funds are performing and can select to invest in mutual funds that starts out performing the others to produce profits. For the senior citizens and retired investors, mutual funds can offer a hedge against inflation and it can direct the retired investors to the best stock picks and most importantly, it can protect the retired investors from losing their savings. Chapter 3 mutual funds 3.1 What is Mutual Funds? 3.2 Types of Mutual Funds 3.3 Categories of Mutual Funds 3.4 How Mutual Fund Works 3.5 Partners in a Mutual Fund 3. MUTUAL FUNDS 3.1 What is Mutual Fund? A mutual fund is basically a collective investment that pools money from many investors to buy bonds, stocks, short-term money market instruments or other securities and is managed professionally. Mutual funds serve as a connecting bridge of a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual funds have a fund manager who is responsible for investing the gathered money into specific securities (stocks or bonds). When an individual invests in a mutual fund, he or she is likely to buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund. Mutual funds are considered as one of the best available investments as compared to other investments. They are very cost efficient and convenient; individuals can easily invest in. Thus by pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing risk maximizing returns. A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification. Mutual funds have a large amount of funds so it is easy for the investors to invest in different stocks or bonds. 3.2 Types of Mutual Funds Open Ended Closed Ended Open-end Mutual Fund Open ended mutual funds possess following characteristics: Open ended fund is a fund which issues or redeems its shares at net asset value (NAV). It does not have a fixed fund size. Investors can get back their investment at any time by selling the units back to the fund. These are no fixed number of units. Open end funds are type of mutual fund that does not have restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many investors there are. Open-end funds also buy back shares when investors wish to sell. It should be noted that when a funds manager(s) determine that a funds total assets have become too large to effectively execute its stated objective, the fund will be closed to new investors and in extreme cases, be closed to new investment by existing fund investors. In simple terms, open end funds mean that the fund does not have a set number of shares. Instead, the fund will issue new shares to an investor based upon the current net asset value and redeem the shares when the investor decides to sell. Open-end funds always reflect the net asset value of the funds underlying investments because shares are created and destroyed as necessary. Close-end Mutual Fund Following are the characteristics of close ended mutual funds: Close end fund is a fund whose shares are traded at prices other than the NAV It has a fixed fund size. Investors can sell their shares to any buyer through an exchange where the share is listed other then the issuing company. These are fixed number of units / shares. A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. Unlike regular stocks, closed-end fund stock represents an interest in a specialized portfolio of securities that is actively managed by an investment advisor and which typically concentrates on a specific industry, geographic market, or sector. The stock prices of a closed-end fund fluctuate according to market forces (supply and demand) as well as the changing values of the securities in the funds holdings. 3.3 Categories of Mutual Funds Following are the broad categories of funds that are further sub categorized and tailored according to the requirements of the investors Stock Fund / Equity Fund / Capital Market Fund Hybrid Funds / Multi Asset Fund / Balanced Fund Fixed Income Fund / Money Market Fund Islamic Fund A. Stock Funds Investment Objective The primary objective of this fund is to invest in stocks through different stock exchanges while controlling risk. The aim of the fund is to provide individuals and institutional investors with a well diversified portfolio of equity stocks covering all major sectors. The objective is to maximize income and capital gains by prudently employing its investment management expertise. Investment Policy The fund follows a growth strategy by investing in ‘large cap companies. This entails looking for companies with a track record of growing sales and earnings and the potential for more of the same. In drawing the investment plan Research plays a vital role, as it identifies the stocks which have potential for capital gains, development of particular industry and its impact on the particular stock, timings of investments and divestments depending upon industry trend and expected results. Asset Allocation The portfolio generally has the following asset allocation but it can change from time to time or as the investment strategy molds it. B. Hybrid Fund Investment Objective The main objective of this fund is to participate in a diversified portfolio of securities representing investments in capital and money markets. The main investment objective is to maximize capital appreciation and income. Investment Policy Consistent with the investment objective the fund primarily invests in large capital equity securities, along with debt securities and other money market instruments such as Government Bonds, TFCs, Islamic Bonds, Reverse-Repo etc. Asset Allocation The portfolio generally has the following asset allocation but it can change from time to time or as the investment strategy molds it. C. Fixed Income Funds Investment Objective These funds seek to provide its unit holders with attractive income from a well diversified portfolio of low risk assets while maintaining liquidity. Investment Policy In line with the investment objective the fund invests in a diversified portfolio of Government Securities, Investment Grade Term Finance Certificates, Rated Corporate Debt, Certificates of Investment and other long and short term money market instruments. Asset Allocation The weightages of the investment mix of the portfolio are managed in a manner that reduces the risk of loss in market value of the investments as the result of any major upward movement in lending rates. During periods where the Management Company is of the view that there is economic uncertainty, the weightages of the portfolio are increased in the short-term debt securities, debt securities with short remaining life, money market instruments and short maturity repurchase arrangements including spread transactions. The funds typically comprise of 60 % fixed income instruments. D. Islamic Fund Investment Objective These fund aims at achieving high level rate of capital gains and current income in line with Shariah principals along with providing liquidity to the investors. Investment Policy These funds primarily invest in Shariah compliant investment instruments whereby 60% investments are made in listed securities. Specifically; Shares, TFCs, Participation term certificates, Musharika, Murabaha, and other asset backed securities. The funds also keep cash in riba free deposit schemes with Islamic banks and other financial institution with the objective to maintain sufficient liquidity. Equity investment broadly meets the following criteria and any additional requirements as advised by the Shariah advisors: (These criteria change subject to change in investment policies and shariah advisors) The basic business of the investee company should be halal. The total debt of the investee company should not exceed 45% of its total assets. Long term assets of the investee company as a percentage of current assets may not exceed 10% Mutual funds with different investment objectives provide a variety of investment risk and return opportunities to the investors. Therefore, it is important for fund investors to thoroughly understand and identify the investing style employed by the funds that they choose to use to build their portfolios. Mutual funds can also be categorized as the following: The three included categories in the mutual funds are lower risk and return, moderate risk and return and high risk and return. Further sub categories include money market funds, income funds, balanced funds,equity funds and aggressive allocation stock funds. 3.4 How Mutual Fund Works The below mentioned diagram is clearly shown the process that how a mutual fund works. A. Net Asset Value The Net Asset Value is a term used to describe the value of an entitys assets less the value of its liabilities. The term is commonly used in relation to collective investment schemes. It may also be used as a synonym for the book value of a firm. For mutual funds, net asset value is the total value of the funds portfolio less liabilities. The NAV is usually calculated on a daily basis. B. Sale Redemption Sale With reference to mutual fund industry sale is said to be executed when a unit or number of units are sold to an investor by a mutual fund on a specific price. Sale Price It is the price at which an open-end mutual fund sells its shares or units to the investor. In most cases, the sale price is the net asset value per share but they might have a sales load incorporated which is explained in the next two paragraphs. Redemption With reference to mutual fund industry redemption is said to be executed when a unit or number of units bought back from an investor on their instructions and the investor is paid back his money at the rates of the prevailing unit price by a mutual fund. Redemption Price It is the price at which an open-end mutual fund buys backs its shares or units from the owners. In most cases, the redemption price is the net asset value per share but they might have a back end load incorporated which is explained in the next two paragraphs. Management Fees The management fee for the fund is usually the advisory fee charged for the management of a funds investments. However, as many fund companies include administrative fees in the advisory fee component, when attempting to compare the total management expenses of different funds, it is helpful to define management fee as equal to the contractual advisory fee + the contractual administrator fee. This helps when comparing management fee components across multiple funds. Contractual advisory fees may be structured as flat-rate fees, i.e., a single fee charged to the fund, regardless of the asset size of the fund. However, many funds have contractual fees which include breakpoints, so that as the value of a funds assets increases, the advisory fee paid decreases. 3.5 Partners in a Mutual Fund Investment Management / Asset Management Investment management is the professional management of various securities (shares, bonds etc) assets (e.g. real estate), to meet specified investment goals for the benefit of the investors. Investors may be institutions (insurance companies, pension funds, corporations etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes e.g. mutual funds). The term asset management is often used to refer to the investment management of collective investments. Investment managers who specialize in advisory or discretionary management on behalf of (normally wealthy) private investors may often refer to their services as wealth management or portfolio management. Investment management services include financial analysis, asset selection, stock selection, plan implementation and ongoing monitoring of investments. Coming under the remit of financial services many of the worlds largest companies are at least in part investment managers and employ millions of staff and create billions in revenue. Investors An investor is any party that makes an investment. The term has taken on a specific meaning in finance to describe the particular types of people and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company. The term is also applied to parties who purchase real estate, currency, commodity derivatives, personal property, or other assets. The term implies that a party purchases and holds assets in hope of achieving capital gain, not as a profession or for short-term income. Trustee Trustee is a legal firm or group of people who hold the property or investments on behalf of the mutual fund. A trust can be set up either to benefit particular persons, or for any charitable purposes. In all cases, the trustee may be a person or company, whether or not they are a prospective beneficiary Registrar A registrar is an official keeper of records. In case of a mutual fund they are the ones who keep the record of the â€Å"Sale† and â€Å"Redemption† of units, total units issued or outstanding with the information regarding the Unit Holder, dividend distribution etc. Distributor It is a firm or an individual who is licensed by the Asset Management Company to sell units on behalf of the fund. Custodian / Depository It refers to an institution which safeguards and manages flow of the financial assets of a Mutual Fund. In finance, a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian is as follows: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets (dividends in the case of equities and interest in the case of bonds), provide information on the underlying companies and their annual general meetings, manage cash transactions, perform foreign exchange transactions where required and provide regular reporting on all their activities to their clients. Custodian banks are often referred to as global custodians if they hold assets for their clients in multiple jurisdictions around the world, using their own local branches or other local custodian banks in each market to hold accounts for their underlying clients. Assets held in such a manner are typically owned by pension funds. Chapter 4 Research Findings 4.1 Choice of Investment in Mutual Fund 4.2 Comparison of Pakistan with Asia. 4.3 Delimma of Investing in Mutual Funds 4.1 Choices for Investing in Mutual Funds For the following four categories; Stock Fund / Equity Fund / Capital Market Fund Hybrid Funds / Multi Asset Fund / Balanced Fund Fixed Income Fund / Money Market Fund Islamic Fund Listed are the available choices for Investing in Mutual Funds as of March 31st 2011. AKD Investment Management Ltd AKD Income Fund AKD Index Tracker Fund AKD Opportunity Fund AKD Alfalah GHP Inv. Management. Ltd. Alfalah GHP Income Multiplier Fund Alfalah GHP Value Fund Alfalah GHP Islamic Fund Alfalah GHP Stock Fund Alfalah GHP Capital Protected Fund Alfalah GHP Cash Fund Alfalah GHP Capital Protected Fund II Al Falah GHP AMZ Asset Management AMZ Plus Income Fund AMZ Plus Stock Fund AMZ Askari Investment Management Ltd. Askari Income Fund Askari Asset Allocation Fund Askari Islamic Income Fund Askari Islamic Asset Allocation Fund Askari Soverign Cash Fund Askari Atlas Asset Management Ltd. Atlas Income Fund Atlas Islamic Income Fund Atlas Islamic Fund Atlas Stock Market Fund Atlas Money Market Fund Atlas Crosby Asset Management Crosby Dragon Fund Crosby Pheonix Fund Crosby Dawood Capital Management Dawood Money Market Fund Dawood Islamic Fund Dawood Faysal Asset Management Faysal Balanced Growth Fund Faysal Income Growth Fund Faysal Asset Allocation Fund Faysal Savings Growth Fund Faysal Money Market Fund Faysal Islamic Savings Growth Fund Faysal Habib Asset Management First Habib Income Fund First Habib Cash Fund First Habib Stock Fund Habib HBL Asset Management HBL Income Fund HBL Multi Asset Fund

Financial Failure Company

Financial Failure Company Advantages disadvantages of Altman Z score Argenti A score model for predicting company failure which is useful to different groups in society and extent to which these models rely on published financial statements. The financial failure of a company can have a devastating effect on the all seven users of financial statements e.g. present and potential investors, customers, creditors, employees, lenders, general public etc. As a result, users of financial statements as indicated previously are interested in predicting not only whether a company will fail, but also when it will fail e.g. to avoid high profile corporate failures at Enron, Arthur Anderson, and WorldCom etc. Users of financial statements can predict the financial position of an organisation using the Altman Z score model, Argenti model and by looking at the financial statements i.e. balance sheet, income statements and cash flow statements. Megginson Smart (2006, p.898, para3) defined business failure as the unfortunate circumstance of a firms inability to stay in the business. Business failure occurs when the total liabilities exceeds the total assts of a company, as total assets is consider a measure of productivity of a company assets. This essay looks at the pro and cons of models in predicting corporate failures in order to measure the financial position of the company. Neophytou, Charitou Charalambous (2001) identified reasons for business failure as i.e. high interest rates, recession squeezed profits, heavy debt burdens, government regulations and the nature of operations can contribute to a firms financial distress. The traditional analysis of financial ratios has been widely used in disclosing of operative and financial difficulties of an organization. Traditional ratio analysis allows the users of financial statements to understand the firms performance when placed in environment e.g. the firms previous performance, existing economic climate etc. However, the ratio analyses is a good indicator to measure the performance but sometimes, it is hard to achieve the required result due to different accounting policies, resulting in difficult to analyse the company performance based on only an individual ratio. Liquidity or working capital ratios are the foundation for analysis of potential corporate failure, which is significant to investors as the y wish to know whether additional funds could be loaned to the company with reasonable safety and whether the business is able to return back the interest and the principal itself. Business failures can be predicted by approaches like Z score and A score models, using a number of financial variables. Megginson Smart (2006, p.914, para1) defined Z score as the product of a quantitative model that uses a blend of traditional financial ratios and a statistical technique known as MDA. Altman (1968) used multiple discriminant analysis (MDA) in the effort to find a bankruptcy prediction model. Altman (1968) combined five ratios to produce Z score. Elliott Elliott (2006) states that companies with a Z score of 2.7 or more indicated as non failure or a going concern and firms with a Z score of 1.8 or less indicated as failure. Z score is between a grey area. Altmans Z score is found to be about 90% accurate in forecasting bankruptcy one year in the future and about 80% accurate in forecasting in two years in the future. Resultantly, Altman Z score model is useful for the management of the company to improve the potential ability and also helps the users of the financ ial statements to make essential economic decisions. The users of financial statements use Z score model in order to assess the financial position of the company e.g. shareholders of a firm may use Z score to provide an early warning signal of failure i.e. to evaluate the degree of risk attached to the investment. Customers of the company may be interested in the future supplies of the product and services. If the Z score is negative, it shows that the business is at risk and customers might opt for alternative products. In the last decade, the usefulness of financial ratios for decision making has been paid increasingly attention, due to the fact that if the business fails the investors, employees, lenders, creditors etc. may all suffer the loss. Elliott Elliott (2006, p.703, para2) pointed out that the Z score analysis can be employed to rise above some of the limitations of traditional ratio analysis as it assess corporate stability and more significantly predicts potential case of corporate failures. However, Altman Z score model also have some disadvantages. Pike and Neale (2003) state that the Z score model is based on the historical financial data, which is a big problem in making economic decision making because some of the present circumstances can be different from the past. Also, some of the accounting policies used by companies which makes it difficult to get the required result from the Altman Z score model. In other words, we can say that corporate failure models relate to the past i.e. without taking into account the current state of the macroeconomic environment e.g. the level of inflation, interest rates etc. The publication of accounting data by companies is subject to a delay, failure might occur before the data becomes available. These failure models share the limitations of the accounting model including the accounting concepts and conventions on which they are based. Regan (2002) also identified various limitations of the Z score model i.e. use of historical dat a which is consistent with findings of Pike and Neale (2003). Also, Regan (2002) stated that there is lack of conceptual base in Z score model and lack of sensitivity to time scale of failure i.e. time factors may not be fully taken into account. Other limitation of Z score model is that it does not provides the theory to explain bankruptcy, it only check the financial position of the company and not the fact that how to recover from this financial distress. (Taffler and Agarwal, 2007) Argenti A score model is also a well known approach for predicting corporate failures use by various users of financial statements. Sori, Hamid and Nassir (2004) pointed out the identification of potential failures can be done through a qualitative approach e.g. Argenti failure model (1976). They stated that a qualitative approach usually examines the non-financial variables such as type of management, the number of active shareholders, the availability of effective accounting information systems and also the levels of gearing in different economic situations. Elliott Elliott (2006, p.706, para1) states that Argenti developed a model to predict the likelihood of company failure. This model is based on calculating scores for a company based on three stage events i.e. defects of the company, management mistakes and the symptoms of failure. In calculating company A score, different scores are allocated to each defect, mistake and symptom according to their importance. The defect exists in the organizations top management which rises due to accounting systems and wrong decisions. Management fault can lead to company failure which is high geared, over trading etc. Due to these defects and mistakes, symptoms of business failure will started to rise. Various symptoms include high staff turnover, delayed management decisions etc. If a company achieve a overall score of over 25 or a defect score of over 10, or a mistake score of over 15, then the company is showing classic signs leading up to failure. However, a business is understood to be a going concern if the overall score of the company mistakes and defects below 18 (Elliott Elliott, 2006). A score model is the best tool to analyze the management performance and non financial procedure to predict the corporate failures. There are also some limitations of Argentis model. The financial health of an organization cannot be explained by specific financial indicators e.g. liquidity, return on investment, profit etc. The existence of management errors in different failure paths is also not totally clear, resulting in little differences between them (Ooghe and Prijcker, 2007). There is also no proper rule to calculate the points of defects, mistakes and symptoms which give a rise to situation that A score model is complex but Z score model provides a exact figure to predict the corporate failures (Elliott and Elliott, 2006). In conclusion, this essay looks at different approaches i.e. Z score, A score to predict companies failures and their pro and cons in relation to economic decision making. Users of financial statements rely on true and fair view of these statements, so they can get an idea of the financial position of a company because of the fact that investors are interested in their returns plus dividend, employees are interested because of the job security and bonuses etc. The traditional ratio analysis is an excellent indicator but it cannot make all decisions single handily. Z score model is based on ratios, which are based on accounting information. Z score model reduces the risk for the investors, creditors, customers, lenders etc. and enable the management of the company to increase profit levels, productivity and shareholders wealth. Altman Z score model is the best approach to predict corporate failure because it gives an exact benchmark for decision making. (Elliott and Elliott, 2006). Ho wever, publishing poor Z score of an company can also have devastating effect on the business itself as investors might withdraw the investment in the business which might result in its financial collapse of the company. Argenti A score model is a good approach to measure the managers performance that shows the success or failure of a company. Corporate failures are common in competitive business environment where only the fittest company has a guarantee to survive in the market discipline. The financial distress on a company and its management can have an intense effect on how the firm behaves and how its investors, suppliers and customers see it. When a company is in financial distress, suppliers are reluctant to extend credit and customers are concerned about future supplies, warranties and after sales services. If a company has a support of its shareholders, then the company has more chances to survive especially in this subprime mortgage crises and credit crunch era. Both the qualitative and quantitative information are important in identifying financially distressed firms e.g. the financial information, share price, bank debts which also are the important distressed signals for potential failures. Predicting variables other than financial ratios may prove beneficial for the company e.g. management skills experience and other behavioural aspects that have an impact on the day to day running of the firm, could be significant in a bankruptcy prediction model. References Altman, E. (1968), Financial ratios, discriminant analysis and the prediction of corporate bankruptcy, Journal of Finance, Vol. 23 No. 4, September, pp. 580-609. Argenti, J. (1976) Corporate Collapse: The Causes and Symptoms, London: McGraw-Hill. Elliott, B and Elliott, J. (2006) Financial Accounting and Reporting, 10th edition, Prentice Hall, FT. Megginson, W., and Smart S. (2006), Introduction to Corporate Finance, Thomson Learning. Neophytou, E., Charitou, A., Charalambous, C., (2001). Predicting Corporate Failure: Emprical Evidence for the UK. Discussion Paper No. 01-173, March 2001, School of Management: University of Southampton, UK. Ooghe, H., and Prijcker S., (2007), Failure processes and causes of company bankruptcy: a typology, Working paper. Pike, R. and Neale, B. (2003) Corporate Finance and Investment: Decisions and Strategies, 4th edition: Prentice Hall Regan, OP (2002), Financial Information Analyses, John Wiley Sons. Taffler, J.R. and Agarwal, V (2007) Twenty-five years of the Taffler z-score model: does it really have predictive ability? Accounting and Business Research, 37(4), p. 285 Sori, Z., Hamid, M., and Nassir, A., (2004), Perceived failure symptoms: evidence from an emerging capital market.