Explain some theory that you have read about in relation to the Essay

Explain some theory that you have read about in relation to the pricing of products and discuss its usefulness - Essay Example In the marketplace, they encounter a wide array of vendors and product offerings with a complex variety of benefits, prices, terms, and promotional messages. Research findings suggest that much of what people do when they buy products and services follows a definite logic. They look for cues to help simplify decision making, and often rely on simple rules of thumb. Correspondingly, it is possible to identify patterns of behavior in the way buyers go about satisfying their needs (Morris, Morris, 1990). The business must consider the customers perception of price implementing strategies such as positioning, price points and fair pricing. Price alone can be used in several ways to attract customers. There are two opposing strategies to the pricing of a product. If the business expects to be the low-cost leader, it must price (position) lower than the competition. If it wants to signal high quality, it should price products higher than most of the competition. Some manufacturers and reta ilers use price as a signal of quality. Consumers often have few indicators of quality, so price may be perceived as one of the better available cues.   By studied these various psychological aspects of consumer behavior, it becomes possible to price products and services to be of maximum appeal to the target market. Certain brands and retailers position themselves as providing value and quality at a low cost. These retailers rely on loss leaders to get consumers in the door knowing that once in, consumers are more likely to shop for other things as well. There are certain specific prices (price-points) at which people become more willing to buy a certain type of product. ‘Under  £100’ is a popular price point. An amount below  £20 including sales tax is another popular price point because it is the most popular denomination of money that people typically carry with them.

Regultion of public utilities Essay Example | Topics and Well Written Essays - 3250 words

Regultion of public utilities - Essay Example I shÐ °ll use the term in its broÐ °d sense, to comprehend Ð °ll industries over which the right to regulÐ °te hÐ °s been estÐ °blished Ð °nd efforts Ð °t regulÐ °tion introduced. It is worth while Ð °t the outset to distinguish cleÐ °rly between the speciÐ °l control over public utilities Ð °nd the regulÐ °tion of industries in generÐ °l. Under the police power, Ð ° stÐ °te hÐ °s the right to regulÐ °te Ð °ny business. This sort of regulÐ °tion hÐ °s to do with sÐ °fety devices, conditions of heÐ °lth Ð °nd well being of employees, Ð °nd, with more or less defined limitÐ °tions, the generÐ °l welfÐ °re of the public (King, 2000). The regulÐ °tion of public utilities, however, is of Ð ° different sort Ð °ltogether. It embrÐ °ces the right to control the very orgÐ °nizÐ °tion Ð °nd conduct of the enterprise. It is concerned not only with sÐ °fety Ð °nd welfÐ °re, but with the rÐ °tes chÐ °rged the public Ð °nd the returns or profits reÐ °lize d by the business, Ð °s well Ð °s with the products or services furnished. In the so-cÐ °lled unregulÐ °ted business the right to such interference is not recognized. Ð fter Ð °ll reÐ °sonÐ °ble provisions for the public welfÐ °re hÐ °ve been mÐ °de, ordinÐ °ry business is still free to furnish such services or products Ð °s it desires, chÐ °rge such prices or rÐ °tes Ð °s it is Ð °ble to exÐ °ct, Ð °nd conduct its finÐ °nciÐ °l mÐ °nÐ °gement Ð °ccording to its own purposes or contrÐ °ctuÐ °l Ð °rrÐ °ngements. The right to regulÐ °te in the speciÐ °l sense wÐ °s first recognized in the celebrÐ °ted cÐ °se of Munn v. Illinois, decided by the Supreme Court of the United StÐ °tes in 1876.

Power of Active Directory in Windows Server 2003 Essay Example for Free

Power of Active Directory in Windows Server 2003 Essay In order to understand the concept of active directory first lets take a look at directory service. Directory Service is a service which stores information of using and managing different objects of network at a centralized point. Those objects include printing servers, file servers, printers; fax servers etc . The directory service stores all of the information regarding the resources and at the same time provides mechanism of easy access to the resources’ information for the users. Active directory is also a directory service in windows server 2003 which stores information about the netwrok resources and about the services that make this information available to the users. Now let’s look at the power and key features of active directory in windows server 2003:  ·Multiple selections of directory objects: We can change the common attributes of many users at the one time.  ·Drag-and-drop functionality: You just need to drag and drop the directory objects from one container to another in order to move them  ·Efficient search capabilities: The object oriented searching facility provides efficient search minimizing the traffic on the network.  ·Saved queries: The active directory queries can be saved, exported, reopened and refreshed, and the results of the attributed queries can also be exported.  ·Active Directory command-line tools: A number of command line tools are available to manage the active directory. Those tools are Ntdsutil, Dsget, Dsrm, Dsmod, Csvde, Dsadd, Dsquery, Dsmove and Ldifde.  · Domain functional levels :Active directory’s domain wide features in your network can be enable using domain functional levels.  ·Forest functional levels: The Active directory’s forest wide features in your network can also be now enabled using forest functional levels.  ·Secure All Lightweight Directory Access Protocol (LDAP) traffic:   All Lightweight Directory Access Protocol (LDAP) traffic is signed and encrypted by Active directory’s administrative tools, by default. It ensures that the data is not corrupted and that it is coming from the known source.  ·Active directory quota: With Active directory quota, the ownership of objects by a user, computer or group can be limited by assigning quotas.  ·New Group Policy settings: more than 200 group policy setting are included in windows server 2003‘s active directory.  ·New Resultant Set Of Policy (RSoP) Wizard is included which enables you to check the policies assigned to a specific user or computer.  ·Folder redirection is also made very easy.  ·Advanced options for software installation are available, which makes installation process easy and administration effective.  ·InetOrgPerson class has been added to enhance the security and it can be used in the same way as the user class is used.  ·Cross forest support is also provided.  ·The Software Restriction Policies that are included can identify unwanted or hostile soft wares and hence will not let them execute on the computer. But this requires that the system is either being run on Microsoft Windows XP Professional or on a family member of Windows Server 2003.  ·Domain controller renaming: The domain controllers, without demoting, can now be renamed with the active directory of windows server 2003.As well as the domain name can now also be renamed with this.  ·In the domain hierarchy, the domains can be moved from one location to another.  ·The two way transitivity can now be extended by creating forest trust.  ·The users’ access of one domain or forest can be allowed, disallowed or given selective access to another domain of forest.  ·Unnecessary objects of the schema can be deactivated  ·In order to link the auxiliary classes to the objects on dynamic bases, extra support is provided.  ·When the partial attribution set is extended , the resulted administrative actions take place; at that time the Tuning global catalog replication is available for preserving global catalog’s state of synchronization All in all the active directory of Windows server 2003 provides a lot of additional features which to facilitate the management, administration and usage of resources in the network. The security additions are also very remarkable and a lot of flexibility is given to the administrator to check and configure different parameters of the network. Other than this some work has also to improve the responsiveness of the network and to cater with the network traffic. Flexibility for moving objects and domains, and for renaming them is also made easy .And with the new policies introduced the access of a user from one domain of forest to another can also be a controlled effectively. Providing these all functionalities and flexibilities to the networks administrators and mangers make their tasks of access controls, security, managing of objects etc very easy. References Spealman, Jill, Hudson, Kurt (2004). Windows Server 2003 Active Directory Infrastructure. Redmond ,Washington: Microsoft Press. Jones, Don (2003). Windows Server 2003 Weekend Crash course. NewYork: Wiley Publishing Inc..

Implied PPP of the Dollar and Actual Exchange Rate

Implied PPP of the Dollar and Actual Exchange Rate Ques.: The Economist publishes every year the prices of a standard BigMac around the world. Find the BigMac prices for the USA, France, and South Korea and the corresponding (average annual) nominal exchange rates in 2006 and 2009. Calculate for each of these countries the implied PPP of the dollar 2006 and 2009 and compare this to the actual exchange rates. Can you explain the differences in implied PPP of the dollar and the nominal exchange rates? The Economists Big Mac index is an informal index sometimes used to judge whether current exchange rates between different currencies are justified and currencies are at their correct exchange rate, though it is not intended to be a precise predictor of currency movements. Now commonly known as burgernomics, it is based on the theory of Purchasing Power Parity (PPP). PPP is the notion that a dollar should buy the same amount of goods in all countries. It suggests that a long term equilibrium will adjust exchange rates such that the purchasing power or cost of traded goods and services in different countries will be the same. It is based on thelaw of one price: in ideally efficient markets, identical goods should have only one price. The Big Mac index uses the prices of McDonalds Big Mac hamburger, which is produced in about 120 countries. It assumes that the Big Mac is a similar product in each economy, wherever produced, and it is made with identical specification, thus it should have the same price everywhere. The following tables compare the Big Mac prices, nominal exchange rates and the Implied PPP for USA, France and South Korea for the year 2006 and 2009. Comparing actual exchange rates with PPPs indicates whether a currency is under- or over- valued. A countrys currency is said to be overvalued if the implied PPP is greater than the market exchange rate and it is said to be undervalued if the implied PPP is less that the market exchange rate. In accordance with the above explanation, Euro is overvalued both in 2006 and 2009 i.e. the implied PPP is more than the nominal exchange rate. The Euro has appreciated in 2009 as compared to 2006, but the nominal exchange rate should come down by about 28%(for 2009) and 19%(for 2006)to equalise with the implied PPP and thus holding the law of one price true. Whereas, the South Korean Won is undervalued both in 2006 and 2009, as implied PPP is less than the nominal exchange rate. We notice that the Won has depreciated in 2009 as compared to 2006, but the nominal exchange rate should go up by 26%(for 2009) and 17%(for 2006)to equalise with the implied PPP. The under/over valuation of Euro and South Korean Won for 2006 and 2009 is shown below: There is a difference between the nominal exchange rate and the implied PPP of the dollar as calculated using Big Mac prices. This difference can be attributed to several factors. The difference can arise largely due to factors affecting either: The implied PPP by Big Mac index Or Nominal Exchange Rate Firstly, the difference arises because the actual prices of Big Macs are not same everywhere. Many of the inputs of a Big Mac cannot be traded internationally, thus the prices of these goods may diverge substantially between countries. This effects the PPP but not the nominal exchange rate because comparisons on a purchasing-power parity (PPP) basis take account of the variations in prices of the same goods in different countries. Unlike comparisons at market exchange rates, PPP reflects the real purchasing power of each countrys residents. The Big Mac index is most useful for assessing the exchange rates of countries with similar incomes per head. It is quite natural for average prices to be lower in poorer countries than in developed ones. Non tradable inputs like labour services and property rent generally differ and are particularly cheap in poorer countries. This gives a big cost advantage in production of these goods and services. PPPs are therefore a more reliable way to derive exchange rate than market exchange rates, because cheaper prices mean that money goes further. The prevailing rates of taxes also lead to a difference in input prices and the selling price of a same commodity in different regions. The PPP model assumes that the real value placed on goods is same in different countries. But in reality, what is considered a luxury in some places might be a necessity in others. The PPP method does not take this into consideration. On the other hand, the factors which effect the nominal exchange rate are price level of the two countries in question, inflation rates, the real exchange rate etc. There factors might not always affect the PPP, thus there is a difference between the two. The above points explain the differences between implied PPP and nominal exchange rate. The believers of PPP have based their views largely on arguments relating to international goods arbitrage, which leads to equilibrium but this is not always the case. Thus Big Mac index is not a perfect measure of exchange rate. References: www.oanda.com/convert/fxhistory www.economist.com/markets/bigmac Big Mac IndexA Dictionary of Finance and Banking. Ed Jonathan Law and John Smullen. Oxford University Press, 2008.Oxford Reference Online. Oxford University Press. Big Mac IndexA Dictionary of Business and Management. Ed. Jonathan Law. Oxford University Press, 2009.Oxford Reference Online. Oxford University Press. purchasing power parityA Dictionary of Business and Management. Ed. Jonathan Law. Oxford University Press, 2009.Oxford Reference Online. Oxford University Press. purchasing power parity theory of exchange ratesThe Handbook of International Financial Terms. Peter Moles and Nicholas Terry. Oxford University Press 1997.Oxford Reference Online. Oxford University Press. Economist; 7/18/2009, Vol. 392 Issue 8640, p74 Economist; 5/27/2006, Vol. 379 Issue 8479, p74 Economist; 6/23/2007, Vol. 383 Issue 8534, p86-86. Economist; 6/5/2004, Vol. 371 Issue 8378, p98-98. Economist; 04/11/98, Vol. 346 Issue 8063. Strauss, Jack. Southern Economic Journal.Stillwater: Yr 1995. Vol. 61, Iss. 4 Mankiw and Taylor (2008), Macroeconomics

The Jungle Essay -- Essays Papers

The Jungle In Upton Sinclair’s novel The Jungle not only symbolized an era where dirt and filth ran rampant in meat packing industry, but it also exposed people to the natural human desire of greed, power, and corruptions. This in turn was a socialist transformation itself. Sinclair also provides the meaning to the phrase â€Å"wage slavery† in different ways. In the novel Sinclair tells a story about a man name Jurgis, a Lithuanian immigrant who gets married to young lady named Ona Lukoszaite, who’s also a Lithuanian immigrant. At the wedding there are saloon-keepers who cheats the family on liquor and beer, claiming that the guests consumed more than they actually did. Since the family had enough sense not to argue with these powerful people they decided to do as they were told. Since Jurgis felt that he was strong enough to work off the money that was owed to these people he decided to work harder. Throughout the 1st two chapters of the novel Sinclair finds a way to talk about Socialism. Socialism is the belief that whoever controls the means of production holds the power to determine how well the people live. â€Å"The Socialists were organized in every civilized nation†(Sinclair 315). When Jurgis had made himself familiar with the Socialist literature, as he would very quickly he, would get glimpses of the Beef Trust from all sorts of aspects, and he would find it everywhere the same; it was the incarnation of blind and insensate Greed. In the Nove...

The Ethics of Cloning Essay -- Genetics Biology Genes Essays Papers

Imagine a world where everyone looked like you and was related to you as a sibling, cousin, or any form of relation, wouldn’t that be freaky? Although cloning is not an important issue presently, it could potentially replace sexual reproduction as our method of producing children. Cloning is a dangerous possibility because it could lead to an over-emphasis on the importance of the genotype, no guaranteed live births, and present risks to both the cloned child and surrogate mother. It also violates the biological parent-child relationship and can cause the destruction of the normal structure of a family. The cloning of the deceased is another problem with cloning because it displays the inability of the parents to accept the child’s death and does not ensure a successful procedure. Along with the risks, there are benefits to Human Reproductive Cloning. It allows couples who cannot have a baby otherwise to enjoy parenthood and have a child who is directly related to them. It also limits the risk of transmitting genetic diseases to the cloned child and the risk of genetic defects in the cloned child. Although the government has banned Human Reproductive Cloning, the issue will eventually come to the surface and force us to consider the 1st commandment of God, all men are equal in the eyes of god, but does this also include clones? That is the question that we must answer in the near future in order to resolve a controversy that has plagued us for many years. In the world today, issues such as Global Warming and the War in Iraq take the front cover on any newspaper, but in the world tomorrow, the concept of cloning will become an ever-more pressing issue. How do you define the term cloning? Well, in the words of Jac... ...e pressing issue that will question our morals, ethics, and view on human dignity. As a society, we must come to a decision regarding Human Cloning and stand by it, whether it is the right decision or not. Our actions will have a profound impact on the methods of reproduction used by future generations. Works Cited Page Cibelli, Jose, et al. Principles of Cloning. San Diego: Academic Press (AP), 2002. Brannigan, C. Michael. Ethical Issues in Human Cloning. New York: Seven Bridges Press, Chatham House Publishers, 2001. "Arguments for "Reproductive Cloning." The Presidents Council on Bioethics. Vers. 3a. 7/12/07. http://bioethicsprint.bioethics.gov/background/workpaper3a.html â€Å"Arguments against â€Å"Reproductive Cloning.† The Presidents Council on Bioethics. Vers. 3b. 7/12/07. http://www.bioethics.gov/background/workpaper3b.html

Banco Compartamos Case Study

Social innovation and enterprise is one way of eradicating poverty and illiteracy in society. The model that an enterprise takes determines their social impact in the long run. While some organizations maintain their social values over time, others abandon or diminish those values and venture into more financially profitable activities (Yunus 205). The paper addresses how the micro-finance business model used by Compartamos Bank compares with the village bank model of Grameen Bank. Microfinance in this sense refers to the supply of small loans, insurance, savings, and basic financial services to poor people, who are often unable to access such in conventional banking institutions. It looks at the shift of Compartamos Bank to a commercial bank, impacts of the shift to its initial mandate, and the effectiveness of both models in poverty alleviation. When the need for profit making and scaling competes with the need to alleviate poverty, the social motive often diminishes. Sustainabilit y of any social enterprise lies in maintaining its initial social values. Commercialization drives capitalism, which is often incompatible with social good. Making profound and lasting impacts on poverty alleviation requires consistency in social orientation.Comparison of Microfinance ModelsCompartamos Bank is a commercial microfinance while Grameen Bank is a village bank. The main difference between the two models is their funding methods. As a village bank, Grameen is primarily funded through local funds from community saving deposits, while Compartamos is funded as traditional commercial banks, engaging in IPO as one way of fundraising. Both models aim at reducing poverty, reaching scale, and financial sustainability though by applying different approaches. In place of collateral required by traditional banks, Grameen Bank uses voluntary formed small groups of five people for mutual and morally binding guarantees (Volkmann, Kim and Kati 253).The banking system is based on account ability, participation, mutual trust and creativity, a complete reverse from requirements of conventional banking. Village banking offers women equal access to financial aid, as they have been recognized as very enterprising. Operations of Grameen Bank are executed by bicycle bankers in various community branch units (Fotabong).Group members meet weekly for collection of the repayments and are accountable for each other. Compartamos Bank as a commercial bank offers loans, insurance and savings to its clientele. It operates as a conventional bank targeting the poor. It is for-profit organization that charges higher rates and opened up to public and private investors in a bid to scale up its profitability and financial sustainability. Compartamos started as a not-for profit organization and its shift to a commercial enterprise has been received with mixed reactions. The major concern of the shift is not in the high interest rates charged but on the importance placed on profitability m ore than social good. With all the profits and scaling the people who benefit most from such a set up are the already rich investors at the expense of poor borrowers.Evolution of CompartamosFounded in 1990 as a non-government organization, Compartamos aimed to eradicate poverty by giving credit to small businesses, especially poor women. It was initially supported by international donors and philanthropists to serve indigenous people in the poorest parts of Mexico. The company turned into a for-profit organization in 2000 in order to increase their funding (Carrick-Cagna and Santos 4). The company began accessing capital markets in 2002 raising millions of bonds over the next years. It slowly involved private investors and further obtained a commercial banking license in 2006 to enable them offer more services to its clients such as savings and insurance.The need to scale made the company raise hundreds of millions from a successful initial public offering (IPO), earning huge return s from private and public sectors without using any additional capital according to Carrick-Cagna and Santos. The profits allowed Compartamos to achieve financial self-sufficiency, no longer relying on donor aid. Thirty percent of the company was given to private investors and in essence the founders, with their visionary social goals have no complete control over the organization. The commercialization of Compartamos may seem to emphasize profit making over social good. Currently it offers microcredit services such as loans, insurance, and savings to low income earners and is among the largest and most profitable microfinance institutions in Latin America (MFI Solutions, LLC, USA and La Colmena  Milenaria, A. C., Mà ©xico 13).Investors in the bank make enormous profits, which is a good thing for any organization but for a microfinance dedicated to improving lives of the poor, it is seen as a problem. The extent to which Compartamos benefits the already-rich private investors far outweigh the benefits accrued to poor borrowers. It charges up to 100 percent interest rates per year to borrowers. In the perspective of fundamental values of microfinance, the actions of Compartamos are not pro-poor.Social ValuesIn the social enterprising context, the stand of Compartamos Bank is controversial. While to others it is a pro-poor initiative, others see a shift in its operation no different from conventional banks which are often anti-poor, anti-illiterate and anti-women according toYunus. Inequalities between the rich and the poor are a question of access to financial credit. Compartamos allegedly charges very high interest rates to its borrowers, who struggle to the rate while investors highly profit. Most of the poor people are also illiterate and few understand the idea of interest rates. What most borrowers focus on is how much they have to repay weekly but calculated in real sense, the interest rates are much higher than those of common commercial banks. The re sult is confining the poor in a never-ending cycle of poverty where they borrow more to service their credits.Implications for Increased CommercializationCompartamos IPO was a huge success in financial markets but majority of the shares went to hedge fund managers and commercial investors rather than the socially-responsible investment entity. According to MFI Solutions and La Colmena Milenaria, the lending capacity of the Bank increased after the IPO, though the interest rates charged went higher and higher with time. The bank has more than doubled its reach to clients in need of financial services in Mexico. In order to cater for the expansion and operating costs, the bank charges interests above the normal commercial Mexican rate.It has however continued to expand and retain many of its clients. It is a major concern to microfinance, on the appropriate balance between the goal of providing access to financial services to the poor and profitability and sustainability of microfinan ce institutions. The shift of microfinance from  social investors to commercial investors is a threat to social enterprises aimed at alleviating poverty. The IPO has sent a message that social service and profitability go together.It is a message that will definitely attract more private investors into microfinance. Compartamos IPO does not exclusively have implications on the company but to the entire microfinance entity. As a non-profit organization started off by grants, the implication is that society may have a different view of social enterprises. Some would question ethical, moral, and social values of such establishments.The Future of MicrofinancePlayers in the sector are uncertain about the future of microfinance, especially with the move of Compartamos to commercialize its operations. Commercialization of microfinance is seen as an opportunity to expand access of the poor to financial services. The high profit margins will attract more investment into microfinance, there by availing more money to extend to people to help them out of poverty. Additionally, it is felt that if other microfinance players shift to commercialization, the profit maximizing behavior will further take advantage of the poor. This would worsen the existing gap between the rich and the poor, profiting the rich and sending the poor into more poverty.Initiatives of the past two decades to make businesses socially responsible will also have been a waste. Communities and socially-responsible investors may shy away from initiatives aimed at addressing serious social issues. Microfinance faces a danger of turning into how well investors are doing of how profitable microfinance institutions are instead of actively focusing on ending poverty. In conclusion, those who founded formal microfinance intended it for the social good, but when more people got involved, the objectives and intentions of social enterprises shifted. The best model that is well adapted to create wealth for the poor is Grameen’s village model. With commercialization it becomes difficult to determine where microcredit ends and loan sharking ends.Involvement of private investors, whose main aim is often profit making would make social enterprises in microfinance serve more the interests of investors at a disadvantage of poor clients. It would turn microfinance from an area where non-profits and donors effect beneficial social and economic change into a haven for profit-maximizing investors. We  are living in a capitalist society where the need to satisfy personal interest overrides social good. In view of microfinance and addressing poverty, it is better to operate on the traditional approach of such initiatives other than commercializing it.