Analysis of the Theory of Unbalanced Growth

Investigation of the Theory of Unbalanced Growth Do you imagine that a less created/creating nation ought to consistently follow the way of adjusted development? In the event that truly, why and if not why not? Validate your contentions with the models drawn from encounters of improvement in creating nations. Answer: When Rostow was making endeavors to put financial advancement inside a dynamic structure, it lead to a discussion in the 1950’s and the 1960’s which was essentially focused on whether improvement endeavors should concentrate on explicit monetary divisions inside the nations or whether it ought to be completed in every significant segment of the economy to be specific the assembling segment, agribusiness and the administration areas. In this very setting, financial expert Ragnar Nurkse propounded that advancement endeavors should utilize capital so as to build up a broad scope of businesses in the countries. As per his convictions, an Intensive by and large exertion was of most extreme significance, which would eventually drive the creating or the immature countries from the endless loop of neediness where the restricted gracefully of capital began in any case, because of the low sparing rates. In immature nations, the endless loop of destitution is answerable for the little size of the market for their products. Nurkse was a â€Å"export pessimist† and he accepted that the accounts required to make interests in less created nations ought to begin from their own residential domains. He didn't give any significance to the advancement of fares. The decent development approach likewise underpins the large push hypothesis which advances the directing of mass cash-flow to all the parts without a moment's delay attributable to the conviction that continuous interest in the divisions isn't sensible. Ventures ought to be done in various enterprises that commonly bolster one another, so as to augment the size of the market. Interests in the divisions ought to be made at the same time with the end goal that it realizes a positive drive to conquer the critical boundaries to advancement. With the selection of this methodology, there rises new chances to appropriate the products of improvement all the more uniformly all through the general public and to fix the situations of imbalance, swelling and joblessness of assets. Then again, the hypothesis of adjusted development has been to a great extent censured as it disregards the monetary ideas of all round advantages resulting from specialization underway and improvement forms. Since it happens inside a shut economy and is pertinent dominatingly to a private undertaking framework as opposed to specialization and exchange, the convention repudiates the entire guideline of relative favorable position. Likewise, it accentuates on the complementarity of business sectors for definite merchandise and essential shopper products as an improvement to contribute and overlooks the quick merchandise advertise. It has been expressed to be unreasonable as it expects a nation which is creating or is immature to make mass interests in all the parts at the same time without considering the angle that if a nation had enough assets to put resources into all the segments of the economy at the same time, it would not arrange as immature or creating in any case. Additionally, the hypothesis makes an illogical supposition that all countries would begin from a similar zero point, while in actuality such isn't the situation. Certain economies will undoubtedly have certain authentic qualities and distinctive speculation limits which may differ. This hypothesis has been greatly excused, when in the 1960’s and 1970’s the genuine advancemen t of LDC’s reflected development with no huge endeavor to synchronize the synchronous interests in all the parts because of which these countries kept on remaining nearly immature. In opposition to this hypothesis, a few scholars additionally pushed a system of speculation just in particular areas as an endeavor towards empowering development in the creating nations. Financial analyst Albert O. Hirschman set forth embracing lopsided interests in explicit financial parts so as to supplement the uneven characters that as of now seem to exist inside the economy of a country in that capacity. The uneven development methodology targets destroying the shortcomings in immature countries by receiving incited speculation dynamic. Hirschman negated the parity development hypothesis and contended against it, expressing the most clear that the LDC’S don't approach satisfactory assets to receive and execute a decent, large push venture system. Rather, he suggests that speculations ought to be completed in deliberately chose monetary territories, with the end goal that there is development in different divisions inferable from the retrogressive and forward linkages th at are set up, which will additionally prompt new venture openings, in this way clearing the way for additional financial turn of events. In reverse linkages realize new interests in the information ventures, though forward linkages do likewise in the divisions that buy the yield of the chose business. Intentional unbalance, pressures, imbalances and disequilibria realized in the economy is the best methodology to accomplish financial development in an immature or creating nation. Along these lines the economy can step by step move from the track of an uneven development example to that of adjusted development. Recognizing all the benefits of the lopsided development procedure, this hypothesis additionally has its deficiencies. The hypothesis makes a natural presumption that the achievement of the development procedure can be followed down to outer exchange and remote guides. This further upsurges the vulnerability of the development procedure. The hypothesis is additionally observe d to underscore on advancement through industrialization without contemplating the essentialness of horticulture. Being focused on just a few businesses, there may be circumstances where the assets are not suitably used. Likewise, a few parts of the economy will be seen to develop at a quicker rate while different segments will stay dismissed. This brings up an issue with respect to whether speculation has been done in the right divisions inferable from the viewpoint that all the segments of the economy are not contributed upon. In this way, in this specific plan cautious comprehension of the circumstance of every nation should be completed, so as to figure out what interest in which division should occur as intends to arrive at an extreme parity among all the venture segments in the economy. The hypothesis of uneven development gives off an impression of being a perfect methodology proposed by Hirschman at bringing up the approaches to quicken monetary improvement in creating and immature countries regardless of every one of its imperfections and burdens. As we probably am aware, with impromptu uneven development there is positively no affirmation against joblessness, expansion and inconsistent dissemination of pay and the system is perceived as a tenet of free enterprise, which demonstrates that there is a nonattendance of protections against the socially disruptive outcomes of progress. Howsoever, it despite everything has all the earmarks of being more reasonable and achievable than the fair development technique as it attempts to consider practically all the moment parts of advancement arranging. Actually, even the different incitements, impediments and protections from improvement are thought about in their proper points of view. Uneven development produces external ities. The current externalities are investigated while age of the new ones occur. It advances the development of vital ventures and in this way, invigorates the development of different businesses. Likewise, there are specialized complementaries which animate the development of related businesses along the lines of this system. Since interests as Social Overhead Capital (SOC) and Direct Productive Activities (DPA) can't be mulled over all the while in less created or creating nations, attributable to the conspicuous absence of assets, the hypothesis suggests that spotlight ought to be built up on both of the two, and because of which the other one would be naturally invigorated. So as to accomplish this, the development of the economy should happen either by unbalancing the economy through SOC; by advancing the development of SOC which would animate interest in DPA, or by unbalancing the economy with DPA; to such an extent that the venture made in DPA would in the end press for int erest in SOC. It is through this procedure of linkages regularly known as the â€Å"linkage effect†, that the financial development will at last occur. Advancement should advance with the point of focusing on ventures which will have the biggest complete linkage. In any case, the principle issue can be limited to making sense of the sort of lopsidedness that is required to be the most helpful relying on the economy of the country. Hirschman pin focuses the nonappearance of relationship and linkage in less created nations because of which the essential creation exercises for sends out have almost no advancement impacts on the economy of an immature nation. He accordingly advances a strategy and promoters the setting up of â€Å"last stage enterprises first† so as to determine the issue. He weights on trade advancement and import replacement and favors a blended economy inferable from the way that except if the SOC pathway of monetary improvement is received by the state, it won't energize any type of private interest in DPA, as private interests in immature nations neglect to make the fundamental financial overflow that is an essential for advancement to proceed and in any event, for the food of misfortunes. It has been seen, that notwithstanding the shortcomings of the lopsided development system as delineated in the start of the report, the strategy has come to be perceived as reasonable for the improvement of immature and creating nations. At the point when Joseph Stalin administered devel

Causes and Effects of Inflation

Circumstances and end results of Inflation Expansion is an expansion in the measure of cash available for use, bringing about a moderately sharp and abrupt fall in its worth and ascend in costs: it might be brought about by an increment in the volume of paper cash gave or of gold mined, or a relative increment in consumptions as when the flexibly of products neglects to satisfy the need (Webster, 1983). Expansion is a rate which there is a persistent ascent in cost of merchandise and enterprises in a nation over some undefined time frame. It is happen when there are an excessive amount of cash in the economy pursuing too barely any products. The side effects of the swelling are the point at which all the cost of merchandise and enterprises continue rising and when the cash an incentive in the nation begin falling. At the point when expansion occur, the buying intensity of individuals will begin falling. The cost of products and ventures are excessively high, so individuals begin purchasing less and devour less. Each nation would like to accomplish a low expansion rate however it's anything but a simple activity to acknowledge it. It is same goes to India. India is a nation in South Asia. There are about over 1.2 a great many individuals in India. In 2011 and 2012, India has a high swelling rate in the nation. As per the graph ( Appendix 1), in 2011, there is a practically 10% of expansion rate for the year. It is consider as very high pace of expansion. In 2012, the expansion rate has fall contrast with 2011. It is between 6.87% to 8.07%, it is as yet a high swelling rate. 2.0 Causes of Inflation 2.1 Demand pull expansion One of the reasons for expansion are the populace and the interest is rising, the populace is 1.22 a huge number of individuals in India. When there are excessively enormous number of individuals, the requests of merchandise and ventures increments and the products and enterprises may insufficient to flexibly the individuals, along these lines the cost is going up, consequently cause the swelling. 2.2 Import cost push expansion The import cost of merchandise and ventures likewise push the expansion rate to increase. It is on the grounds that more import than send out in the nation. At the point when India is dependent on importation of certain products and ventures from other nation, India needs to pay all the import costs regardless of whether the import costs is excessively high. Paying import costs additionally brought in the cash of India continue streaming out from the nation, so expansion occur. 2.3 Excessive cash flexibly. When there are a lot of cash stream in the market, it causes cash flexibly in the market become extreme. It is happen when the phase of blast, individuals have a lot of cash close by, so the utilization is expanded. 2.4 Expectation Desire is happened when the cost of merchandise and ventures are relied upon to ascend in the market. Now and then, it additionally happen when the neighbor nations are confronting the swelling and ascending of products and enterprises. At the point when the cost of merchandise and ventures become high, inflationm happens. 3.0 Argument In spite of the fact that import expenses can push expansion, however it doesnt impact much in India. This is on the grounds that there are numerous remote venture or numerous outside financial specialists like to start business or construct plants in India because of minimal effort of work powers and enormous quantities of work powers particularly in vehicles producing industry, for example, Toyota, Bentley, and others are having industrial facilities at India. In this way, the administration of India would not have to import such a great amount of vehicles from others nations. There are sufficient flexibly of vehicles in India. Consequently, the administration of India can reduce down certain expenses on importation. 4.0 Impact 4.1 Weakening of money esteem. The money use in Indian is Rupee. Cash worth can be says as the swapping scale or the cash is less expensive or progressively costly contrast and others countries.The conversion scale of Indian Rupee (INR) to United State Dollar (USD) 2012 December is about 54.4900 rupee to 1 dollar (Appendix 2). In 2011 December, the conversion scale is about 53.0100 rupee to 1 dollar (Appendix 3). This show the money estimation of rupee is as yet debilitating since a year ago. At the point when the cash is powerless, it doesn't have any worth. Indian individuals won't prefer to hold the cash close by. At the point when the individuals go through the cash, the expansion rate will increase. This is on the grounds that numerous individuals need to go through the cash however they need to pursue too scarcely any products. At the point when this occur, the cost of products and enterprises will rising. The cost of products and ventures are so high however the cash esteem is dropping. This outcomes to the cash printed is getting bigger. For instance, in Indian, there are 1000 rupee (Appendix 5) to be printed while Malysia just has RM 100. 4.2 Falling of buying power. Because of persistent value ricing of products and enterprises, individuals in Indian has no cash to expend the merchandise and ventures. Taking a gander at the Consumer Price Index (CPI) at addendum 4, the cost of merchandise and ventures and ricing for consistently. It is getting increasingly hard for individuals to spend or expend on merchandise and enterprises. For models, the vegetable being sold on the city of India is around 50 rupee to 55 rupee for every kilogram and 20 rupee for the tomato. In this manner, individuals purchase not exactly previously. 4.3 Draw away outside speculation. Since the swelling occur in India, the outside speculators wouldn't like to work the business and processing plant or even contribute anything at India. The outside financial specialists need to put resources into a sheltered condition, for example, less vacillation in money worth and increasingly stable on the cost of merchandise and ventures. The remote financial specialists need to pick up benefits or income through their venture. On the off chance that swelling occur, it is difficult to guarantee the speculation bring any benefits or income for them. At the point when the outside speculation is being drew away, there are less monetary development in India. The opening for work additionally lessening and lead to high joblessness rate. 4.4 Cost of living increments. At the point when the cost of merchandise and ventures are excessively high, the average cost for basic items will likewise increments. There are some neccessity acceptable which each family need it. There are no real way to dodge from devouring these products, for example, can tissue, cleanser and others. The cost of these merchandise will likewise rise. Since it is important to each family, in spite of the fact that the cost is high, individuals will in any case purchase and expend it. This make the typical cost for basic items increments. 4.5 Unemployment rate increments. When there is an expansion, the business needs to chop down the operational and assembling cost however much as could reasonably be expected to conceal the significant expense of the assets. At the point when this occur, it will prompt joblessness. The business will chop down some work power. Numerous individuals will lost the positions. Along these lines, the joblessness rate will increments. In December 2011, India has about 9.4% of joblessness (Appendix 6). It is consider as a high figure. It is likewise causes by when the outside financial specialists close up the business because of expansion. It make numerous laborers lost the positions. 4.6 Slow financial development. At the point when expansion occur, the financial development will be moderate. It is on the grounds that a large number of the business can't be extend or even decreased during this period because of the significant expense of the assets and low money esteem. Business has no any additional cash to support the monetary development and some even can't remain with the significant expense of crude materials and choose to shut everything down of the business. In this way, the financial development will back off. The monetary development in India 4.7 Argument Despite the fact that draw away the outside financial specialists is one of the effects which cause by swelling, however it isn't clear in India. It is on the grounds that the work powers are extremely modest in India. Along these lines, numerous financial specialists despite everything ready to put resources into India yet they ordinarily put resources into the business which sends out the products to other neighbor nations in India and just a little merchandise to sell at India. For instance, a few alumni who are Pavan and his schoolmates are being offered normal yearly pay rates of $7,000 (Â £4,370), about 15% lower than comparative alumni were getting a year prior (Logita Limaya,2012). 4.0 Efforts taken by Government 4.1 Government urges to diminish financing cost to support monetary development. Legislature of India need to lessen the financing cost which is the loan cost or the getting cost to support the economy development. The Reserve Bank India (RBI) kept loan costs on hold, overlooking government strain to decrease obtaining costs, yet said it was moving its concentration towards boosting a hailing economy, raising the chances of a rate cut as ahead of schedule as January (SuvashreeDey Choudhury and AradhanaAravindan, 2012). On the off chance that the loan fee can be decreased, business will have progressively capital by acquiring the cash from the bank to grow the business. Hence, it assists with boosting the financial development. 4.2 Increase the administration pay and lift monetary development by sending out more vehicles. Government needs to build the quantity of fare on vehicles. The vehicles are generally sent out to Sri Lanka. It is difficult to build the exportation on the grounds that the import duty of Sri Lanka. Government is haggling with Sri Lanka by requesting that they cut down the import tax. On the off chance that the exchange is effective, the exportation can be increment. At the point when exportation builds, it implies there is more opening for work for the work powers in India and the joblessness rate can be diminishes. The financial matters of India will likewise grow up and more salary can be produced by the administration. 4.3 Open market activity Open market activity is national bank of India selling or purchasing securities, protections, treasury bills and others during swelling. It is to diminish the cash stream in the monetary so the utilization will be less and expansion rate can be lessens. In Jan 2012, Reserve Bank India (RBI) is open for progressively open market activity. The legislature of India and the Reserve Bank India has chosen to have progressively open market activity to diminish the high swelling rate in India by selling the bones, protections or treasury bills to the individuals. We are available to increasingly open market activities if the liquidity issue should be tended to. The cut in CRR (money hold proportion) is absolutely a liquidity measure. It has placed in Rs.32, 000crore, SubirGokarn, representative legislative head of Reserve Bank of India

Finals Week at MIT

Finals Week at MIT Its finals week! That dreaded time of year when people hide away in their rooms and in the libraries and delve into deep bouts of sadness.  The cats are taking the hit from it the most weve spent a lot of time using them for therapy and squishing them or putting them in funny places to make us feel better. However, there are some nice things about finals week.  My hall has a lot of really awesome traditions, and the seniors started a new tradition this year. They made a senior gift for the underclassmen! They spent hours and hours and days making us a Tetazoo card game, and they gave us each a card with our name and super powers on it. My card gives me special Medlink powers, and my quote is Let me go get my camera! Every semester on the Sunday before finals week, my hall also has another tradition called Cookies and Pooh.  We make cookies, serve milk, and read Winnie the Pooh. However, this year, we read Little Prince. So it became, Cookies and Little Prince.  Some people insisted on reading their parts in French when it was their turn to read from the book as we passed it around. They say it sounds better in French but I didnt understand a word of it. I guess it sounded pretty? Another tradition is Finals Pasta! Each night of finals week starting on Sunday, a resident who doesnt have a final the next day makes a pasta dish (or another form of food that we still call pasta, like chili) for the whole hall. Kate R. 14 has been making us food the past couple days, and it has been wonderful. Yesterday she made chili, and tonight, we had Jambalaya! Im going to make veggie lasagna on Wednesday. We also have a finals board, which is the white board in our lounge where people put their name, room number, and the time they have to be up in the morning. Usually there is also a really important question on the board for residents to fill out (Favorite Tetazoo resident? Where did you hide the bodies? What is your favorite food?). The first person who wakes up (which is usually someone who was up the whole night) has the duty to wake up the next person who needs to be up, who then wakes up the next person who has to be up, and so on! And unless the person physically comes to the lounge to cross off their name, we keep knocking on their door. Nobody sleeps through finals here on Tetazoo (well hunt you down!). Also, a really awesome thing that is done in all the dorms across campus is finals breakfast.  Each day, our wonderful GRTs and the fantastic baby Marie make us a really yummy breakfast with a different theme. Today we made breakfast burritos, and there are always little Juicy Juice boxes! I love Juicy Juice! I always claim that Juicy Juice is what gets me through finals in the end. Juicy Juice is very important. I love Juicy Juice. Additionally, Medlinks hand out finals breakfast every day in the Z center, which is the location of most finals.  We give out bagels and bananas, and it really helps those people who want a snack during their final or who didnt get a chance to catch finals breakfast at home.  This way, we can ensure that people are eating at least once a day. MIT is really supportive during finals time. This is one of the most stressful times of the year, but were getting through it. Together :)

Obesity Among Us - Free Essay Example

Sample details Pages: 2 Words: 513 Downloads: 10 Date added: 2019/03/22 Category Health Essay Level High school Tags: Obesity Essay Obesity in America Essay Did you like this example? Over the course of forty-two years analyzation and statistical models were used to gather and provide results from one hundred and twenty-eight point nine million individuals across one-hundred eighty-nine countries to show three levels of weight from underweight, obesity, and mean BMI. Amongst these levels there are subcategories, these categories include but are not limited to three groups of ages, gender, and geographical areas. These subcategories are essential when it comes to the statistical data in the view of the fact that the obesity epidemic is different in children than amongst adults. Children from five to nineteen years of age, twenty years of age, and the remainder of adult ages were analyzed during this study. Children have easy access to a multitude of fast food which makes ensuring organic food being processed amongst children essential. The three main components that are being an increasing problem for children with a high BMI are type two diabetes, negative psychological effects, and lower chances of being academically successful. The Sustainable Development Goals which cover nutrition, health coverage, and a multitude of other concepts. Don’t waste time! Our writers will create an original "Obesity Among Us" essay for you Create order BMI has continuously increased in every country since 1975 to 2016 in both adults and adolescence. Europe stayed the most consistent when it comes to BMI for both adults and children. It was avow that self-reports were not granted. This would have been worrisome for certain geographical regions who strive for their individuals to look a particular part when it comes to sex, and even age. Statistical models were generally used when acquiring these statistics, as well displaying the findings. Figure three stated the three levels of weight are underweight, obesity, and mean BMI along with how each country corresponds to each category. North American region BMI in both men and women were significantly higher than other countries, thus confirming the saying we are the the fattest country. While the country with the lowest number of individuals who are significantly underweight is also North America. The Middle East as well as Africa, correlate positively with the highest population of underweight individuals. The Monte Carlo algorithm was used to visualizes the data. This stated the mean of the BMI for both boys and girls in 1975 and then again in 2016. You can see a substantial difference when you examine the figure. Part of the statistics that was the biggest shock was that womens BMI from 1975 to 2016 increased more than the males BMI. However, one part that they failed to put into perspective when it comes to women is the miracle that is child birth. While yes, everyones metabolism changes, womens bodies change due to having child as well not just from outside factors. When measuring BMI, it is only be fair to add women who have not bared a child, then women who have not bared a child, then the mens BMI. The first groups they test for this experiment could have not bared any children at all, and the group from 2016 could have bared six children each. This variable can skew the data significantly and give a false conclusion, thus it should be put into perspective.

Metaphysics Essay - 570 Words

Metaphysics Metaphysics is the philosophical study whose object is to determine the real nature of things to determine the meaning, structure and principles of whatever is insofar as it is. (Britannica.com). So if the sole purpose of metaphysics is to determine the true meaning of things but everything isnt absolute what is the purpose of metaphysics? The nature of the world can be a ever changing thing. Depending on the generation, part of the world or even when you were born into your family (ex. first, middle or baby child) your views can change. The view that I have is that the world is not only chaos but in total chaos. The definition of chaos from Websters Dictionary, is a state of things in which chance†¦show more content†¦The hate that can exists because of different beliefs and lifestyles extends to our country because some groups of people cannot understand or like the freedom that our country has. This and many other things contributes to the chaos around the world. As long as there is people and cultures around in different parts of the world there will always be differences and peace will be something that we as a society and as a world will strive for. A world without chaos how would that be? I dont think anyone would know or how could we handle it if it did happen. Our minds do seek order out of chaos with out a question. Like I said, I think that all the chaos in the world leads to disagreements then to war. In some way or another I think the solution that we as humans to seek out order in our minds we go to war. True not all the time do we go to war sometimes we have a peace summit or something of that sorts. But order in peoples minds seems like it only c omes when they get there way or they are almost forced to take that point of view. Like we have learned, metaphysics isnt always final nor absolute when it comes to nature or science. If you want you can almost come up with an argument for anything about anything. 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Mark Twains The Adventures Of Huckleberry Finn English Literature Essay Free Essays

4. In Mark Twains The Adventures of Huckleberry Finn it is clear as to how the characters have been influenced by their environments. The narrative is set during a clip where bondage and racism are held as socially acceptable and justified by faith in some instances ; this is seen legion times throughout the novel. We will write a custom essay sample on Mark Twains The Adventures Of Huckleberry Finn English Literature Essay or any similar topic only for you Order Now Although the two major characters Huck and Jim have come from and lived in the same environments, the fortunes of their lives are uncomparable. Society has conditioned Huck to accept bondage and racialist attitudes. Slavery has resulted in Jim ‘s attempts to seek his freedom, but besides his deficiency of instruction and to some degree his superstitious notion. Couple uses the environment environing Huck and Jim non merely to portray how it impacts their actions and beliefs, but besides to do a statement about the lip service, immortality, and unfairness found in civilised society at this clip. At the clip period this novel is set in, bondage is an mundane portion of life. As a reader, we see Huck invariably trying to decide the struggle within himself as he struggles between the dogmas of the South and his ain consciousness and morality. Huck ‘s position about the establishment of bondage is the result of what society has ingrained within him, he was born into it. Huck blindly accepts the societal and spiritual values that the Widow and Miss Watson insist he uphold until his ain witting interferes with what he has been taught. Whenever Huck can non follow societal regulations, he blames it on himself and fails to see any mistake in the regulations. He sees his male parent ‘s bibulous harangue in chapter 6, â€Å" †¦ but when they told me there was a State in this state where they ‘d allow that nigger ballot, I drawed out. I says I ‘ll ne’er vote once more†¦ I says to the people, why ai n’t this nigga put up at auction and sold? – that ‘s what I want to cognize † ( Twain 117 ) . Huck hears his male parent ‘s words but does non denounce him because in his universe this position is the norm. Huck is an perceiver and he gives realistic word pictures of what he sees and Twain uses his narrative to exemplify the ailments of society. There are many times in the novel where Huck sees Jim more as a slave, a mere piece of belongings instead than a individual. In chapter 16, Huck begins to panic when he realizes the determination he has made to assist Jim towards freedom, â€Å" †¦ it made me all over trembly and hectic, excessively, to hear him, because I begun to acquire it through my caput that he was most free- and who was to fault for it? † ( 162 ) . Because he believes the values of society are just and merely, Huck feels that he is an confederate for the offense of non turning in Jim back to Miss Watson when he had the opportunity. He goes on to state, â€Å" I got so average and so suffering I most wished I was dead † ( 162 ) . In chapter 23, we see Huck ‘s attitude toward Jim Begin to alter, â€Å" He was believing about his married woman and kids, off up yonder, and he was low and homesick ; and I do believe he cared merely every bit much for his people as white folks does for thei r’n. It do n’t look natural†¦ He was a mighty good nigga, Jim was † ( 204 ) . Huck is able to project aside the racialist values which he has grown up with. Here we see him believing for himself. What Huck sees as natural is that slaves do non care for and love their households the same manner as Whites do, but his sentiment is changed when he sees Jim. It is obvious that Huck has non associated with anyone who was non white and it is possible that he sees Jim as person who is rareness among African Americans due to the fact that he loves his household. As the novel progresses, Huck becomes more and more detached from society but non wholly. He and Jim sail down the Mississippi, making a universe of their ain and it is through these experiences that Huck ‘s friendly relationship with Jim grows and where the influences of the exterior universe are repressed to a certain extent. The best illustration of this is when Huck decides to compose the missive to Miss Watson stating her where Jim is, nevertheless his internal struggles are clearly seeable as he debates with himself whether or non he should make this. Before he precedes to compose the missive Huck says â€Å" And at last, when it hit me all of a sudden that here was the apparent manus of Providence slapping me in the face and allowing me know that my evil was being watched all the clip from up at that place in Eden, whilst I was stealing a hapless old adult female ‘s nigga that had n’t of all time done me no injury†¦ † ( 238 ) . Huck still can non look to get away the impression that because Jim is a runaway slave helping in his attempts to get away is a wickedness. Although Huck can do his ain determinations, society ‘s rules still influence him greatly and after he writes the missive he even goes on to province that it was th e first clip in his life he felt wholly â€Å" clean of wickedness † ( 239 ) . Religion is something that Huck does non clearly understand so his fright of the possible spiritual effects such as snake pits take precedency over his ain morality. However, instantly after composing the missive, Huck begins to believe about Jim and all the good he has done for him and makes a important determination, â€Å" All right, so, I ‘ll travel to hell- and tore it up. It was atrocious ideas, and atrocious words, but they was said † ( 239 ) . At this point we see that Huck denounces himself for his actions, but by making this he has in a manner rejected what society has instilled in him and established himself as an improbable hero. So as Huck ‘s universe alterations from civilized society to life on the Mississippi, from the influence of society at big to the influence of Jim, we can see how Huck besides changes. The Widow and Miss Watson introduced in chapter 1 can be seen as a representation of Southern society. They attempt to educate Huck, but he merely feels constrained by the regulations and ordinances they impose on him. Society besides fails to protect Huck from his opprobrious male parent as he is forced to travel unrecorded with Pap. All of these experiences contribute to Huck ‘s withdrawal from society and consequence in his disbelieving attitude of the universe. The idea of being sold down South and separated from his household prompts Jim to run off. Bing a slave, Jim is uneducated. For illustration when Huck is explicating to him that Frenchmen talk French he can non look to hold on the construct. In many ways he is like a kid. Jim has besides accepted the positions of his racialist milieus. He is convinced that the inequality and biass inkinesss face are rooted in truth. In chapter 36 it is clear that Tom is utilizing Jim to populate out his imaginativeness, â€Å" And told him how to maintain a diary†¦ He told him everything. Jim, he could n’t see no sense in most of it, but he allowed we was white common people and knowed better than him ; so he was satisfied. Despite the manner Jim is being treated, in Jim ‘s head Huck and Tom are white so they must be right. Here, Jim is inactive and self-satisfied which merely emphasizes the subject of bondage in the novel. Couple uses the universe of the characters and how it influences them to supply a societal commentary on his pessimistic positions of humanity. The fresh exposes the jobs he saw in society including the immorality of bondage, spiritual lip service, and the weaknesss of society in general. Jim is treated cruelly by every character throughout the narrative. It is through Huck that bondage is presented as we see him fight between what is jurisprudence in society and what is morally right. The spiritual lip service is abundant from Miss Watson to the Phelps ‘s who have no concern over the establishment of bondage, yet claim to be good citizens. Twain makes it clear as to how racism can misinterpret the beliefs of those who impose bondage and the victims of it. When Huck is handed over to his male parent, this can be seen as Twain ‘s manner to notice on a society that gives whites the right to have other human existences which are considered belongings. A society that claims t o be morally merely and civilized can non warrant bondage. How to cite Mark Twains The Adventures Of Huckleberry Finn English Literature Essay, Essay examples

The Walt Disney Company the Art of Brand Building Keeps Disney Center Stage Essay Example

The Walt Disney Company: the Art of Brand Building Keeps Disney Center Stage Paper The Walt Disney Company has evolved from a wholesome family-oriented entertainment company into a massive multimedia conglomerate. Not only is Disney a producer of media but it also distributes its and others’ media products through a variety of channels, operates theme parks and resorts, and produces, sells, and licenses consumer products based on Disney characters and other intellectual property. CEO Michael Eisner has been instrumental in many of these changes. How can such extensive changes occur while trying to maintain the Disney brand? Disney Through the Years After his first film business failed, artist Walt Disney and his brother Roy started a film studio in Hollywood in 1923. The first Mickey Mouse cartoon, Plane Crazy, was completed in 1928. Steamboat Willie, the first cartoon with a soundtrack, was the third production. The studio’s first animated feature film was Snow White in 1937, followed by Fantasia and Pinocchio in the 1940s. Disneyland, the theme park developed largely by Walt, opened in 1955 in Anaheim, California. The television series, the Mickey Mouse Club, was produced from 1955 to 1959, and the Disney weekly television series (under different names, including The Wonderful World of Disney) ran for 29 straight years. (1) Walt Disney died in 1966 of lung cancer. Disney World in Orlando, Florida, opened in 1971, the same year that Roy Disney died. His son, Roy E. , took over the organization. However, the creative leadership of brothers Walt and Roy Disney was noticeably absent. Walt’s son-in-law, Ron Miller, became president in 1980. We will write a custom essay sample on The Walt Disney Company: the Art of Brand Building Keeps Disney Center Stage specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Walt Disney Company: the Art of Brand Building Keeps Disney Center Stage specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Walt Disney Company: the Art of Brand Building Keeps Disney Center Stage specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Many industry watchers felt that Disney had lost its creative energy and sense of direction because of lackluster corporate leadership and nepotism. In 1984, the Bass family, in alliance with Roy E. Disney, bought a controlling interest in the company. Their decision to bring in new CEO Michael Eisner from Paramount and a new president, Frank Wells, from Warner Bros. ushered in a new era in the history of Disney. (2) Work the Brand Michael Eisner has been involved in the entertainment industry from the start of his career (ironically, beginning at ABC Television in the 1960s). He exhibits a knack for moving organizations from last place to first through a combination of hard work and timely decisions. For example, when he arrived at Paramount Pictures in 1976, it was dead last among the six major motion picture studios. During his reign as the company’s President, Paramount moved into first place with blockbusters such as Raiders of the Lost Ark, Trading Places, Beverly Hills Cop, and Airplane, along with other megahits. By applying lessons he learned in television at ABC to keep costs down, the average cost of a Paramount picture during his tenure was $8. million, while the industry average was $12 million. (3) Eisner viewed Disney as a greatly underutilized franchise identified by millions throughout the world. In addition to reenergizing film production, Eisner wanted to extend the brand recognition of Disney products through a number of new avenues. Examples of his efforts over the years include the Disney Channel (cable), Tokyo Disneyland (Disn ey receives a management fee only), video distribution, Disney Stores, Broadway shows (Beauty and the Beast), and additional licensing arrangements for the Disney characters. However, in the early 1990s problems began emerging for Disney. An attempt to build a theme park in Virginia based on a Civil War theme was defeated by local political pressure. EuroDisney, the firm’s theme park in France resulted in over $500 million in losses for Disney due to miscalculations on attendance and concessions. In 1994, Eisner underwent emergency open-heart bypass surgery and Frank Wells, long working in the shadows of his boss but increasingly viewed as integral for the success of Disney, died in a helicopter crash. Eisner’s choice to succeed Wells, Michael Ovitz from Creative Artists Agency, did not work out and Ovitz soon left. Stories of Eisner’s dictatorial management style brought succession worries to shareholders. Capital Cities/ABC Once again, Eisner ushered in a new era at Disney by announcing the $19 billion takeover of Capital Cities/ABC on July 31, 1995. The deal came in the same week as Westinghouse Electric Corporation’s $5. 4 billion offer for CBS Inc. Disney represented one of several consolidations of the media conglomerates that increasingly control the distribution of entertainment programming in the United States. Disney ranked as the third largest media conglomerate behind AOL Time Warner and Viacom. Eisner appreciated the importance of both programming content and the distribution assets needed to deliver it. (4) As a result of many of Eisner’s decisions, The Walt Disney Company has been transformed from a sleepy film production studio into a major entertainment giant, with its revenues of over $2 billion in 1987 increasing to $22 billion in 1997. (5) Its stock price has multiplied over 15 times, creating enormous wealth for both stockholders and executives of Disney. One of the biggest questions arising from the ABC deal is whether Disney paid too dearly for declining network assets. Viewership among all the major networks was declining. According to Michael Jordan, the CEO of CBS, â€Å"the pure network television business is basically a low-margin to breakeven business. † (6) The networks were squeezed by having to pay extravagantly for programming and were attracting an audience of older viewers who were scorned by advertisers. However, another way to look at networks is as the lifeblood of the global, vertically integrated entertainment giants that own them and as loss leaders that act to promote their parent’s company’s more lucrative operations. In this scenario, ABC acts as Disney’s megaphone to tell the masses about Disney movies, theme parks, Disney-made shows, and toys. Another financial advantage occurs when the network owns and syndicates a hit show, something that could not be done before the networks were deregulated in the mid-1990s. By owning more of their own shows, the networks avoid the increasing licensing fees from the production companies. (7) A potential risk is that a network will miss out on a hit by favoring its own shows. Disney has blocked out certain parts of the week for its own shows. Fox and Disney appear best situated to exploit their platforms, with Fox injecting new life into an old brand, and Disney providing diverse production assets to feed its network. (8) This strategy works as long as networks remain big. During the 1990s, however, network viewership declined; the various networks have cushioned this problem by investing more in their cable holdings. Hard Times and Brand Investment Not everything Disney touches turns to gold. For example, in early 2001, the company was forced to downscale its go. com Internet site as it continued to lose hundreds of millions of dollars. 9) Moreover, from fiscal 1998 through fiscal 2000, net income declined by half, from $1. 85 billion to $920 million, while operating revenue grew from $22. 98 billion to $25. 4 billion. (10) In fiscal 2001 the company had net loss of $158 million on operating revenue of $25. 2 billion. (11) Nonetheless, Disney remained committed to integrating its various operations into the greater Disne y picture and to developing its brands. As Michael Eisner said in the late 1990s: â€Å"It sounds funny, but I am thinking about the millennium change. I’ve got to protect the Disney brand well into the future. (12) As of fiscal 2002, The Walt Disney Company’s businesses included Media Networks, Studio Entertainment, Walt Disney Parks and Resorts, and Consumer Products. Among the various Media Network holdings are: (a) broadcasting networks such as ABC Television Network, Disney owned and operated television stations and radio stations, and Touchstone Television and Buena Vista productions; and (b) cable networks such as the ESPN-branded businesses, the Disney Channel, Toon Disney, SOAPnet, and a variety of online commerce, broadband, and wireless subscription services. 13) Disney’s Studio Entertainment segment produces and/or acquires animated and live-action films, musical recordings, live stage plays, and animated television products. (14) Walt Disney Parks and Resorts includes the company’s theme park and resort operations (e. g. , Walt Disney World, Disneyland, and the Disney Cruise Line) and ESPN Zone sports-themed restaurant, among others. Walt Disney Parks and Resorts also receives licensing royalties and/or management fees from the Paris and Tokyo Disneyland resorts. 15) The Consumer Products segment produces books and magazines, operates Disney retail stores, and licenses Disney’s characters and other intellectual property to manufacturers, retailers, publishers, and promoters. (16) The Walt Disney Company has been very careful in maintaining brand identity and family values. However, the company recognizes that not everything is a Disney cartoon. For example, when the company goes outside its tradition they produce their films under the Pixar or Buena Vista labels. Such movies are still family oriented in a broadly defined manner but are not the typical Disney film. In his letter to shareholders in Disney’s 2002 annual report, Michael Eisner wrote: â€Å"The past years have been disappointing in terms of earnings and stock price, but they have also been an exciting period of investment in our key brands ? investment that I am confident will pay off well in the years ahead. † (17) The company’s competitive advantage is rooted in â€Å"maintaining strong and differentiated brands, most notably the Disney and ESPN brands. † These brands are powerful from a business perspective because they are unique, thereby differentiating the products, and they are relevant to consumers. 18) This competitive advantage has helped return The Walt Disney Company to financial success. In fiscal 2002, The Walt Disney Company’s net income was $1. 2 billion on operating revenue of $25. 3 billion. 1. â€Å"Disney,† Hoover’s Handbook of American Business, Austin, Texas: Hoover’s Business Press, 1997. 2. Ibid. 3. â⠂¬Å"Michael Eisner’s Biography,† Academy of Achievement Lobby, http://www. achievement. org/autodoc/page/eis0bio-1 4. Oneal, Michael. â€Å"Disney’s Kingdom,† Business Week, August 14, 1995: 30-34. 5. Lubove, Seth and La Franco, Robert. â€Å"Why Mickey isn’t doing much talking these days,† Forbes, 8-25-97: 45-46. . â€Å"Disney,† Value Line Investment Survey, 1998. 7. Gunther, Marc. â€Å"What’s Wrong with This Picture? † Fortune, January 12, 1998: 106-114. 8. Ibid. 9. Ibid. 10. The Walt Disney Company Fact Book 2000: 44. 11. The Walt Disney Company Fact Book 2002: 7. 12. Shlachter, Barry and Fuquay, Jim. â€Å"Disney Holds Annual Shareholders Meeting in Fort Worth, Texas,† Fort Worth Star-Telegram, March7, 2001. 13. Fact Book 2002: op. cit. , 7. 14. Fact Book 2002, op. cit. , 19. 15. Fact Book 2002, op. cit. , 26. 16. Fact Book 2002, op. cit. , 38. 17. The Walt Disney Company Annual Report 2002: 3. 18. Ibid.

banning the game

banning the game Banning the Game?As enjoyable as football can be there are many downsides of this dangerous sport. Every year new students try out for football, but they don't know what they're getting themselves in to. A game in which you clash together to get a ball somewhere seems like a lot to risk your life for. Not joining your football team in high schools will cause fewer injuries. Using your head as a battering ram is not helping the brain of the student. Before thinking about joining your team, know what the effects after starting to play. Stop and think about your life before joining the football team.From a recent study 67 percent of a football team get concussions every season. If a student is trying to play football, there's the probability that he will be part of the 67 percent. When you ram your helmet into another helmet, you're not safe. The helmet does not help the brains of teens and protecting it, it makes your head shake in between the metal that covers your head. According to a recent study, teens that faced two or more concussions, reported mental problems at higher and faster rates. In addition, if teens step away from this sport you will be less likely to forget everything.Traumatic brain injury can hurt destroy your brain. A recent study was made that showed that football can cause traumatic brain injury. TBI usually shows in people that play in sports in which you are more likely to hit your head. Recent football players ended up having this disease and destroying their brain. The result of all the brain hits is amnesia. Amnesia is when an individual loses their memory, and can't remember anything about their life. Teens who start hitting their brains in to...English: Anisocoria (right eye instiled by tropica...

History of the 19th Century Whaling Industry

History of the 19th Century Whaling Industry The 19th-century whaling industry was one of the most prominent businesses in America. Hundreds of ships setting out from ports, mostly in New England, roamed the globe, bringing back whale oil and other products made from whales. While American ships created a highly organized industry, the hunting of whales had ancient roots. It is believed that men began hunting whales as far back as the Neolithic Period, thousands of years ago. And throughout recorded history, the enormous mammals have been highly prized for the products they can provide. Oil obtained from a whale’s blubber has been used for both lighting and lubricating purposes, and the bones of the whale were used to make a variety of useful products. In the early 19th century, a typical American household might contain several items manufactured from whale products, such as candles or corsets made with whalebone stays. Common items which today might be made of plastic were fashioned of whalebone throughout the 1800s. Origins of Whaling Fleets The Basques, from present-day Spain, were going to sea to hunt and kill whales about a thousand years ago, and that appears to be the beginning of organized whaling. Whaling in the Arctic regions began about 1600 following the discovery of Spitzbergen, an island off the coast of Norway, by the Dutch explorer William Barents. Before long the British and Dutch were dispatching whaling fleets to the frozen waters, at times coming close to violent conflict over which country would control the valuable whaling grounds. The technique used by the British and Dutch fleets was to hunt by having the ships dispatch small boats rowed by teams of men. A harpoon attached to a heavy rope would be thrown into a whale, and when the whale was killed it would be towed to the ship and tied alongside. A grisly process, called cutting in, would then begin. The whale’s skin and blubber would be peeled off in long strips and boiled down to make whale oil. Whaling in America In the 1700s, American colonists began developing their own whale fishery (note: the term â€Å"fishery† was commonly used, though the whale, of course, is a mammal, not a fish). Islanders from Nantucket, who had taken to whaling because their soil was too poor for farming, killed their first sperm whale in 1712. That particular species of whale was highly prized. Not only did it have the blubber and bone found in other whales, but it possessed a unique substance called spermaceti, a waxy oil found in a mysterious organ in the massive head of the sperm whale. It is believed that the organ containing the spermaceti either aids in buoyancy or is somehow related to the acoustic signals whales send and receive. Whatever its purpose to the whale, spermaceti became greatly coveted by man.   By the late 1700s, this unusual oil was being used to make candles which were smokeless and odorless. Spermaceti candles were a vast improvement over the candles in use before that time, and they have been considered the best candles ever made, before or since. Spermaceti, as well as whale oil obtained from rendering the blubber of a whale, was also used to lubricate precision machine parts. In a sense, a 19th-century whaler regarded a whale as a swimming oil well. And the oil from whales, when used to lubricate machinery, made the industrial revolution possible. Rise of an Industry By the early 1800s, whaling ships from New England were setting out on very long voyages to the Pacific Ocean in search of sperm whales. Some of these voyages could last for years. A number of seaports in New England supported the whaling industry, but one town, New Bedford, Massachusetts, became known as the world’s center of whaling. Of the more than 700 whaling ships on the world’s oceans in the 1840s, more than 400 called New Bedford their home port. Wealthy whaling captains built large houses in the best neighborhoods, and New Bedford was known as The City that Lit the World. Life aboard a whaling ship was difficult and dangerous, yet the perilous work inspired thousands of men to leave their homes and risk their lives. Part of the attraction was the call of adventure. But there were also financial rewards. It was typical for a crew of a whaler to split the proceeds, with even the lowliest seaman getting a share of the profits. The world of whaling seemed to possess its own self-contained society, and one feature which is sometimes overlooked is that whaling captains were known to welcome men of diverse races. There were a number of black men who served on whaling ships, and even a black whaling captain, Absalom Boston of Nantucket. Whaling Lives On in Literature The Golden Age of American whaling extended into the 1850s, and what brought its demise was the invention of the oil well. With oil extracted from the ground being refined into kerosene for lamps, the demand for whale oil plummeted. And while whaling continued, as whalebone could still be used for a number of household products, the era of the great whaling ships faded into history. Whaling, with all its hardships and peculiar customs, was immortalized in the pages of Herman Melvilles classic novel Moby Dick. Melville himself had sailed on a whaling ship, the Acushnet, which left New Bedford in January 1841. While at sea Melville would have heard many tales of whaling, including reports of whales that attacked men. He would even have heard famous yarns of a malicious white whale known to cruise the waters of the South Pacific. And an immense amount of whaling knowledge, much of it quite accurate, some of it exaggerated, found its way into the pages of his masterpiece.

China Economic Growth Since 1949 Research Paper

China Economic Growth Since 1949 - Research Paper Example In 2010 Republic’s per capital GDP was $7, 544. The coastal areas of china are being the major part of its economic importance rather than hinterlands which are under developed. After the founding of Republic of China in 1949, the first three decades carried out under planned economic targets. Whereas the last three decades, mainly the result of the radical reform of its economic system. While watching through lens, China’s economy is facing major challenges. For every country being powerful, It should have improved technologies, far better resources, war technology, competent laborer, a small amount corruption and crime. This stuff isn't only with china but additionally through India that has enormous natural assets, many experts, and India being the largest consumer of arms and ammunition among all of the developing countries, but even then the fact India lagging behind and why china is at front of each developing country? How come china a much more powerful economy? Here are a few within the basic causes of china being the fastest growing economy (Carsten, 2003). Economic strategy within the first 30 years following the founding of PRC in 1949, the Chinese government completed quite organized economy; goals and proportion for a number of spheres of economic progression were established through the "planning committees" from the state. Industrial facilities produced goods based on state plans, and farmers planned and planted crops also based on state plans. Commercial sectors replenished and sold their stocks based on state plans, and also the qualities, quantities and costs of the goods fixed by organizing departments. This technique added towards the stable, planned growth and development of China's economy, it organized the introduction of the economy and sapped its vitality. During last 30 years when private possession of companies rarely existed once these reforms began, private firms currently take into account about 60% of overall product ion. As ownership, is just one aspect of the financial system? China’s financial system has transformed significantly in different ways too. Decision-making about consumption and production has typically been decentralized to individual households and firms, respectively; financial incentives, markets, competition, and internationalization need to a substantial extent replaced command, management processes, monopoly, and autarky. In most cases, China’s reform period is a marked contemporary instance of the traditional lesson that unleashing individual effort has a tendency to strengthen economic development . The question â€Å"why china is growing so fast?† is easy to answer while looking critically at the state control of all productive assets. In 1978, Chinese government embarked on a great program of economic reform.  In an effort to awaken a dormant economic giant, this motivated the formation of rural enterprises, private businesses, liberalized overseas trade and investment, peaceful state management over a few prices, invested in industrial production and the education of its labor force. By nearly all accounts, the tactic has worked spectacularly. During pre-1978 China saw annual development of 6%, while in post-1978 China spotted actual median development of more than 9 % annually. In a number of peak years, the economy increased a lot more than 13 %. Per capita income has nearly quadrupled within the last many years, and some analysts are even predicting how the Chinese economy is going to be higher than those of America in two decades. Such growth rate can compare very favorably to the particular "Asian tigers" Hong Kong, Korea, Singapore, and Taiwan Province of China, which likes a group, had a typical rate of growth of 7-8 % during the last many year

Public Goods and Common Resources Essay Example | Topics and Well Written Essays - 250 words

Public Goods and Common Resources - Essay Example Turkey being the sixth largest textile industry in the world is losing its comparative advantage in the textile industry. The country is losing its comparative advantage due to loss of cheap labour advantage. The cost of labour escalates every year. Statistics indicate that the prices are currently five times that of China. Turkish textile industry has a comparative advantage over the Indian textile industry as a result of the wide market available. Its proximity to European countries makes it easy to reach out for consumers (Sugur, 2005). This gives the company advantage in transportation and access to a large market share. The professor may start a marketing firm. With the professor’s vast knowledge in economics, a marketing consultancy firm would be appropriate for him or her. This enables the professor to be an entrepreneur in a field he or she is quite sophisticated. The professor would provide consultancy services to the clients just as he or she taught while teaching in the

Business Essays Literature Customer Retention

Business Essays Literature Customer Retention Literature Customer Retention Introduction In compiling this literature review, the author has deliberately cast a wide net. This has not only included both major and less prestigious journals, but also practitioner magazines and self-help websites. Customer retention is clearly marketing topic of considerable current and practical interest. Whilst some of what has been written is of dubious value, and some isnt actually even about customer retention at all, it is felt that ideas put forward should be allowed to stand on their merits. Insights by practitioners can often provide useful illumination of academic theory, and it is only by bringing them together that the full picture can be appreciated. The Rise of Customer Retention The sole purpose of a business Peter Drucker (1973) once famously claimed was â€Å"to create a customer†. Marketing has traditionally focused on market share and customer acquisition rather than on retaining existing customers and on building long-lasting relationships with them (Kotler, 2003). However, keeping the customer has become regarded as equally, if not more important, since (Badgett et al., 2004) reported that a 5 per cent increase in customer retention generated an increase in customer net present value of between 25 per cent and 95 per cent across a wide range of business environments. Research done by Gupta et al. (2004) found that a 1 per cent increase in customer retention had almost five times more impact on firm value than a 1 per cent change in discount rate or cost of capital. As a result of these researches, the business case for marketers to focus on the management of customer retention became more clearly established. Because of this, there is a growing recognition now that customers, like products, have a life-cycle that companies can attempt to manage and they can be acquired, retained and grown in value over time. Freeland (2003) points out that customers climb a value staircase or value ladder from suspect, prospect and first-time customer, to majority customer and ultimately to partner or advocate status. In response to these changes there has been a new emphasis on defensive marketing, which focuses on holding on to existing customers and getting more custom from them (higher â€Å"share of customer†), in contrast to activities which focus on winning new customers. One of the reasons for the great popularity of customer retention is the recognition that losing a customer means in fact more than a single sale: It means losing the entire stream of purchases that this particular customer would make over a lifetime of patronage (Kotler and Keller,2006). More recently, market share has been gradually losing its importance as marketing’s wisdom of focusing solely on customer acquisition (hoping that this effort will compensate for high levels of defection) is now being seriously questioned and considered as very high risk since ever more players enter an increasingly crowded marketplace (Baker,2000). Todays banks find themselves more and more in a situation in which they have to build professional customer retention management systems. There are two main reasons for doing so; on the one hand, the costs of gaining new customers in highly competitive markets are increasing considerably. On the other hand, the profitability of an individual customer grows permanently with the duration of the business-relationship (Liu Lai, 2004 ; pg 398). Customer retention attempts to win a slightly larger share of the customer’s spend than would otherwise be the case (McAlexander,2006). In spite of this, according to Weinstein (2002, p. 259), most companies spend a majority of their time, energy and resources chasing new business. 80% or more of marketing budgets are often earmarked for getting new business† (Weinstein, 2002, p. 260). This is in line with Payne and Frow’s (1999) finding that only 23 per cent of marketing budgets in UK organizations is spent on customer retention. Aspinall et al. (2001), in contrast, found that 54 per cent of companies reported that customer retention was more important than customer acquisition. Support for retaining customers in the marketing literature (e.g. Ahmad and Buttle, 2002) is extensive. The benefits of retaining customers to the organisation are higher margins and faster growth, derived from the notion that the longer a customer stays with an organisation, generally the higher the profit. The significance of retaining customers is not new to marketing, as Drucker (1963) believed that marketing is as much concerned with retaining as well as acquiring customers. However, as competition has intensified and markets become saturated, an awareness of the benefits of retention has grown, particularly in the retailing of financial services. Benefits of Customer Retention Dawes and Swailes (1999) explain that successful customer retention circumvents the costs of seeking new and potentially risky customers, and allows organizations to focus more accurately on the needs of their existing customers by building relationships (p36). Researchers have also pointed out that customer retention has a significant impact on profitability and positive customer satisfaction and leads to superior financial performance. This is because firms with high customer retention rates tend to have lower costs, maintain more profitable long-term relationships, and enjoy substantial word-of-mouth advertising (p92). Reynolds (2002) suggests that once a company acquires a group of customers, it can retain that group by making them feel special through customer recognition. Reichheld (2006) in his article ‘Learning from Customer Defections’ identified that longer a customer stays with a company, the more they are worth as in the long-term customers buy more, take less of a company’s time, are less sensitive to price, and bring in new customers. If a customer is retained in a business there is certainly a steady flow of revenue to the business, moreover, there are chances to increase the existing revenue by cross selling or up-selling activities. In addition to this, acquiring a new customer can be a much more onerous and expensive task than keeping an existing one. When banks focus on individual customers by establishing a relationship and encouraging satisfaction and loyalty they have more chances to increase and retain their customer base. Relation banking can be seen as a vehicle to increase single-brand loyalty, decrease price sensitivity, induce greater consumer resistance to counter bank offers or counter arguments (from advertising or bank sales-people), dampen the desire to consider alternative banks, encourage word-of-mouth support and endorsement, attract a larger pool of customers, and/or increase the amount of product bought. It can lead to more purchases more often, give the ability to mass customize communication, minimize waste, helps promote trust and attempts to win a slightly larger share of the customer’s spend (Ongena, S., and Smith,2000). Relationship leads to loyalty, and loyal customers are supposed to buy more, pay higher prices and bring in new customers through word-of-mouth support (Morgan et al.,2000). However, some of these â€Å"profitability-arguments† related to relationship banking have been challenged by Reinartz and Kumar (2002), who compared the behaviour, revenue, and profitability of more than 16,000 individual and corporate customers over a four-year period, concluding that they discovered little or no evidence to suggest that customers who buy on a steady basis are necessarily cheaper to serve, less price sensitive, or particularly effective at bringing in new business. They also found that a considerable amount of loyal customers were only marginally profitable, while a large percentage of short-term customers were very profitable. Woolf (1996) argues that greater success comes from a strategy based firmly on understanding customer economics and only secondarily on customer loyalty and building relationships. However, despite their criticism, even critics themselves have suggested that customer loyalty (relationship) is a worthy contributor to the shareholder value of a company(Houston, 1999;pg33), and that â€Å"firms are encouraged to study their position and options in the pursuit of this goal†(Oliver,1999; pg37). The Lifetime Value Concept Customer retention has also given rise to the concept of Customer lifetime value (CLV or LTV) which represents the net present value of profits, coming from the individual customer from a flow of transactions over time. Novo (2006) describes Customer lifetime value (LTV) as the present value of the stream of future profits expected over the customers’ lifetime purchases. Companies can look at their investments in terms of cost per sale, rate of customer retention and also conversion of prospects. LTV is also used as a convenient yardstick of performance, however, it has tended to become a bit too much of a holy grail for corporate, marketing and sales executives, to the extent that entire conferences and seminars are often devoted to helping optimize it (Romano Fjermesta, 2003; pg 233). It is important to retain customers, but not at the cost of other essential marketing activities. Putting customers into key categories helps to clarify analysis and acts as the basis for marketing activities designed to improve customer lifetime value. While the importance of calculating the Customer Lifetime value in deciding the retention strategies cannot be questioned, some writers are of the view that measuring the lifetime value can sometimes be complicated as it involves a lot of analytical forecasting. Knox et al (2003; pg 207) argue that ‘calculating Customer lifetime value is problematic because it involves forecasting what amounts of what products customers will buy in the future years, and what the sales, administration and logistics costs will be. Because profits in future years are progressively less valuable (because of inflation) and less certain, a discount rate has to be applied. The higher the discount rate, the less valuable future profits will be’. Customer Retention and the rise of relationship banking (RM) The objectives of relationship marketing is to identify and establish, maintain and enhance and, when necessary terminate relationships with customers and other stakeholders, at a profit so that the objective of all parties involved are met. This is done by a mutual exchange and fulfillment of promises. Kabiraj et al. (2004) in their study of relationship practices in India noted that the Indian banking sector can only stay competitive by building lifelong partnerships with their customers. Relationship banking techniques can be employed to develop an ongoing dialog with customers, integrated across all contact points. Knox et al. (2003, p. 19) addressed that RM is a strategic approach designed to improve stakeholder value through developing appropriate relationships with key customers and customer segments and involves an enterprise-wide marketing strategy and technology platform. If done correctly, it enables organizations to retain the loyalty of their customers. It is about managing and monitoring customer behavior and has the potential to change a customers relationship with the banking organization and increase revenue (Dyche, 2002, pg.4). In todays economic condition, relationship banking can help to provide a sense of personal service without an actual person (Seybold, 2007). They allow banking organizations to integrate customer interaction channels and provide consistency in their interactions with customers, generate better customer intelligence, customize their offerings and communications to customers, manage customer interactions and relationships more effectively, and manage the customer portfolio by assessing the lifetime value of customers (Ely, 2006). Relationship Marketing/banking is not a new concept, its roots lie in the marketing basics of repeat purchase, customer retention and customer loyalty. Traditionally followed by retailers, the concept is slowly spilling over to the banking and financial services industry. Berger (2005) describes relationship banking as an attempt to advance the sales culture in bank marketing beyond order taking to a more pro-active form of direct selling which includes knowing more about the customer needs and tailoring products and services to suit individual requirements. Its goal is to establish a long term, intimate and relatively open relationship between banks and its customers. Eg Commercial banks and other financial institutions attempt to apply the concept of relationship banking through Personal Banker and Private Banking programs (Stauss Schoeler, 2004; pg 147). In this way, they are able to understand their customer, give personal advice and develop proximity with the customer. Customer retention has been shown to be a primary goal in firms that practice relationship marketing (Coviello et al., 2002). While the precise meaning and measurement of customer retention can vary between industries and firms (Aspinall et al., 2001) there appears to be a general consensus that focusing on customer retention can yield several economic benefits (Buttle, 2004). As customer tenure lengthens, the volumes purchased grow and customer referrals increase. Simultaneously, relationship maintenance costs fall as both customer and supplier learn more about each other. Because fewer customers churn, customer replacement costs fall. Finally, retained customers may pay higher prices than newly acquired customers, and are less likely to receive discounted offers that are often made to acquire new customers. All of these conditions combine to increase the net present value of retained customers. Lindgreen et al. (2000, p. 295), computed that it can be up to ten times more expensive to win a customer than to retain a customer and the cost of bringing a new customer to the same level of profitability as the lost one is up to 16 times more. Although a number of authorities have suggested that relationship marketing represents a paradigm shift (Christopher et al., 1991; Sheth and Parvatiyar, 1995) from a longer established transactional orientation to customer management, Gronroos (2000, p. 23) noted that the relational perspective on marketing is in fact â€Å"older than the transaction perspective in marketing† and is â€Å"probably as old as the history of trade and commerce†. There has been growing interest in relational aspects of customer management. Relationship banking permits businesses to leverage information from their databases to achieve customer retention and to cross-sell new products and services to existing customers which is why they are synonymous to existing customer promotion. It is believed that companies that implement relationship banking practices make better relationships with their customers, achieve loyal customers and a substantial payback, increased revenue and reduced cost (Blery Michalakopoulos, 2006). Relationship banking when successfully deployed can have a dramatic effect on bottom-line performance. There are two main aims of relationship banking. One is to increase revenue by raising purchase levels and/or increasing the range of products. A second aim is more defensive, by building a closer bond between the banking organization and current customer banks hope to maintain their customer base (retention). The whole idea of relationship banking is based on the argument that profits can be increased significantly by achieving either of these two aims. In todays economic climate building relationships can help banks to do more with less by providing a sense of personal service without an actual person. (Roberts, 2004) Relationship banking seeks to identify and talk to individual customers on a massive scale and this torrential flow of live transactional data offers the possibility to transform how banks manage their business. While it is not important to retain customers, it is important to retain the right customers in the business. Overtime, choices must be made as to which customers to acquire, which ones to develop and which ones to retain. It is true that not all customers are worth retaining, since from a long-term perspective not everyone is equally profitable. It is important to know if a currently unprofitable customer would generate a future profit stream, if an investment were made in enhancing the customers’ satisfaction. These problems can be addressed by profiling customers and making investments in those who offer the desirable growth and profit potential. (Subhash C. Jain 2005, p278) Relational Exchange and Customer Loyalty RM forms the bridge between the banking organisation and the customer, by means of reinforcing linkages, responding to customer needs and serving micro-segments (Berry, 2002; Hennig-Thurau, 2000). Freeland (2003) who has observed and contributed to this body of literature, comments: ‘Marketing practice has increasingly turned towards alliances, partnerships and other forms of relationship marketing, whose success requires effective co-operation. Interpretations of RM vary (Brodie et al., 1997), but common themes are that relationships are based on power being distributed equally between partners (Liu Lai, 2004) and that both the buyer and the seller are active in a rich, multi-dimensional exchange. Further elements that mediate successful relationships are trust and commitment (Garbarino and Johnson, 2006) in which trust is conceptualised as a belief that the partner in the exchange will fulfil the perceived obligations of a relationship. Where the focus is on individual customers, loyalty and retention initiatives can be seen as vehicles to increase single-brand loyalty, decrease price sensitivity, induce greater consumer resistance to counter offers or counter arguments (from advertising or sales-people), dampen the desire to consider alternative brands, encourage word-of-mouth support and endorsement, attract a larger pool of customers, and/or increase the amount of product bought( Bolton et al., 2000) Two aims of customer retention programs stand out, one is to increase sales revenues by raising purchase/usage levels, and/or increasing the range of products bought from the supplier. A second aim is more defensive, by building a closer bond between the brand and current customers it is hoped to maintain the current customer base. Loyalty and retention initiatives can lead to more purchases more often, give the ability to mass customize marketing communication, minimize waste and help promote trust. It attempts to win a slightly larger share of the customer’s spend than would otherwise be the case if the additional value of the scheme were not offered (McAlexander,2002). Research will analyze in greater detail the ways in which retention initiatives can transform the bank’s business and help make strategic business decisions, which is the purpose of the research (to evaluate retention as a key marketing strategy). One of the reasons for the great popularity of customer retention is the recognition that losing a customer means in fact more than a single sale: It means losing the entire stream of purchases that this particular customer would make over a lifetime of patronage – also known as the â€Å"customer lifetime value†(Kotler and Armstrong,2001). Role of Employees Within the Retention Process Another area of research would be the employee involvement in the customer retention process. In the Journal of Marketing Management, Buttle (2004) stresses on the importance of the front line employees. He argues that employees have the power to take actions which provide immediate customer satisfaction and thereby reinforce customer retention. This necessitates actively managing interactions between customer and staff and instigating improvements to the external quality of service by increasing the levels of internal service which staffs receive from within the organization from support departments and technology. (p153) Robert Heller (2005; og 117) insists that the most vital statistic for retaining a customer in any business is its employees. He quotes â€Å"that a satisfied worker creates a satisfied customer and higher financial returns: and that, by the same token, disgruntled staff lead to customer dissatisfaction†. A research by staff at Sears, the US retailing giant in 2006, established a convincing and clear correlation between employee attitudes, customer attitudes and financial results. The research showed that for every 5 units of improvement in employee attitudes, there were 1.3 units of gain on the customer impression index. Moreover, the latter added up to a 0.5% increase in sales over what they would otherwise have been.This outlines the obvious linkage between employee attitudes and customer retention. Therefore, if a business wants to retain its customers, along with devising strategies for customer satisfaction, it has to bear in mind that, employee satisfaction is equally important. The reseserch will analyze the role played by employees in Citibank in promoting customer retention. Researchers have argued that both customer facing and back office staff have a role to play in customer retention. The study will examine the ways in which the staff in Citibank performs their role and the effect it has on customer retention. Customer Clubs Some banks make the use of customer clubs as a strategic instrument for creating customer retention. Customer clubs are communities of current customers that are initiated and organized by companies (Diller, 1997; Butscher, 1997; Butscher and MuÈller, 1999). The current customers are approached for a potential membership to enable a steady direct communication and to intensify the relationship during the total time of business relation (Tomzcak and Dittrich, 1999). As an institutionalized form of added-value services, they aim at offering club members a wide range of benefits and increase customer satisfaction and loyalty. The goal of customer club is to improve the general operational profitability by customer retention. A customer club is regarded as a suitable platform to increase the interaction frequency between the bank and the customer (customer interaction effect) by creating contact and feedback opportunities. By doing so, a close contact is built around the client throughout the entire customer life cycle (Coviello et al., 2002; pg 8). A central objective of customer clubs is the augmentation of organizational knowledge about the customer (customer knowledge effect). With each customer contact starting from account opening the organization receives detailed information about the personal situation, interests and demand structures of the account holders. These insights are collected in a global member data base and linked with further customer data, which form the basis for individualized marketing measures (Ganesh et al., 2006; pg 65). However, some argue that it has to be considered that the set up and development of a customer club requires considerable investments. Whereas the cost effects of these investments are obvious and can be calculated rather easily, there is no certainty with respect to the existence and degree of the expected loyalty effects. Also, the customers willingness for a membership depends on the fact whether a distinct advantage is offered to them as customers are only willing to supply data and participate actively in the club membership, if their individual cost-benefit-calculation leads to a positive result (Gupta et al., 2005; pg 7). Therefore the customer club must offer a bundle of exclusive services, which are attractive for the target group from either a financial, material or communicative perspective. Retention measures and process Banking organizations in the vanguard are making several proactive changes in their service capabilities. They are developing diagnostics to understand what their customers need and value. They are examining what they need to do to retain customers and then train their people accordingly and are reinforcing service-oriented behaviours. Banks are exploring how to anticipate and respond successfully to differences in customer requirements between geographies. They are leveraging the intimate product knowledge of technical people and other staff and teaching them about the critical role they play in customer retention. Some financial service organizations are also teaming up sales, service and technical experts much farther upstream in a customer relationship in ways that are cost-effective and value added (Johnston, 2005; pg 211). It is also worth pointing out that the service component of forward thinking banking organizations is no longer relegated to one department containing the lowest-paid people. Major Banks use technology to accomplish menial tasks quickly, allowing everyone in the organization the time to enhance their skills as salespeople, research and development contacts and potential consultants on complex jobs (Morrman et al., 2002; pg 314). Research done by Nyer (2007) showed that everyone who interacts with customers must become an active agent for customer retention. A number of organizational processes can be associated with customer retention, including customer satisfaction measurement process, customer retention planning process, quality assurance process, win-back processes and the complaints-handling process. The notion that companies should engage in planning if they want to achieve desired business outcomes is deeply embedded in modernist management literature. Retention metrics Despite the scarcity of research into customer retention planning, investigators and commentators have begun to report on a number of related questions, such as how to define and measure customer retention, how to segment customers for customer retention efforts, and what strategies to employ to recover at-risk or lost customers. Aspinall et al. (2001) investigated the issue of definition and measurement of customer retention. They found that customer retention was particularly an issue in larger banking organizations but absence of measurable indicators makes it harder to gauge the impact of strategy implementation on customer retention. Buttle (2004) found that banks can employ one or more of several types of retention-related KPIs – raw, sales-adjusted, or profit-adjusted customer retention metrics. Banks that adopt raw customer retention metrics focus on the retention of a given percentage or number of customers, regardless of value. Banks that use sales or profit-adjusted retention metrics will focus their efforts on customers that generate higher levels of sales or profit. Coyles and Gorkey’s (2002) research also notes the significance of focusing on the retention of profitable customers, rather than all customers. They suggest that it may be more important for banks to focus on managing the overall downward migration of customer spending than customer retention in its own right. They note that many more customers change their behaviour than defect, so the former typically account for larger changes in value (Coyles and Gorkey, 2002, p. 80). They report the case of one bank that lost 3 per cent of its total balances when 5 per cent of checking account customers defected in a year, but lost 24 per cent of its total balances when 35 per cent of customers reduced the amounts deposited in their checking accounts. Another question that researchers have attempted to answer concerns the focus of companies’ customer retention efforts (Koch, 1998; Ganesh et al., 2000). Should retention of every customer be the goal, or should retention efforts be focused on subsets or even individuals? A report by PricewaterhouseCoopers (2002) observes that poor management of customer churn is a major value destroyer and that the key to prevention is to predict and avert attrition of the â€Å"right customers†. The â€Å"right customers† are those that contribute most significantly to the achievement of the company’s objectives. The implication of there being â€Å"right† and â€Å"wrong† customers to retain is that companies are advised to segment their customer base for retention efforts in much the same way that they would segment the market for acquisition efforts (Weinstein, 2002). Evans (2002) suggests that the right customers are those with the highest residual lifetime value. Although there has been little investigation of customer retention planning processes, there has been considerable attention paid to assessing the role and effectiveness of retention strategies and tactics directed towards valued, at-risk or lost customers. For example, a number of researchers have examined the contribution of relationship marketing instruments such as loyalty programs and customer clubs to customer retention outcomes (O’Brien and Jones, 1995; Dowling and Uncles, 1997; Stauss et al., 2001; Verhoef, 2003). Others have examined the development of customer attachment to organizations (Moorman et al., 1992; Oliver, 1999; Hofmeyr and Rice, 2000). The research will look into the retention KPIs of Citibank and assess whether the KPIs accurately measure retention. Type of banking relationships Banking relationships can be economic and social. Economic content deals with the economic benefits and costs of participating in the relationship. Customers are only willing to participate actively in a relationship if their individual cost-benefit calculation leads to a positive result (Stauss Seidel, 2005). Social content suggests that although economics may indicate a prosperous relationship, no relationship can be successful in the long-term without a social environment that nurtures communication, honesty, fair play and an awareness of mutual interests and therefore relationships should accommodate opportunities for interactions so that friendships may be developed. Building a customer retention strategy Setting up a strategy around customer retention requires careful planning and should include detailed plans and methods for customer identification and registration, segmentation and reward design. In order to be a source of sustainable competitive advantage, the banking organization developing the strategy must always take into account what its loyal customers value, since loyalty and retention is inextricably linked to the creation of value (Morgan et al, 2000). The strategy should make sure that it directly supports the value proposition. A value proposition is â€Å"the full positioning of a brand , the full mix of benefits upon which it is positioned† and the answer to the customer’s question â€Å"Why should I buy your brand?†(Kotler Armstrong,2001). Moreover, in order to be viable, a retention strategy must build and sustain noticeable differences in its offerings that are difficult to copy, since a lack of differentiation removes any potential of competitive advantage – which is anything but easy in banking., where first movers are quickly imitated (Morgan,2001). It must be considered that the retention strategy do not exist in a vacuum, but should be a coherent element of the bank’s overall strategy and capabilities. The strategy should take into account the nature of the business, its market position, goals, and the competitive landscape. There is still some confusion regarding the nature, scope, role and influence of customer retention initiatives. From a functional perspective, many marketers believe