Compare the relationship and characters Essay Example for Free

Compare the relationship and characters Essay As Winston continues to write his diary, he begins to write it as though it were for OBrien to read. Despite the fact that Winston has been having a relationship with a woman called Julia, he still feels the need to look toward OBrien for approval of his ideas. When OBrien invites him to his house, Winston begins to believe that in fact, OBrien is a conspirator against the Party. Winston visits OBrien and admits to being a thought criminal. OBrien tells Winston that The Brotherhood, a shadowy organisation run by Emmanuel Goldstein that is working against the Party, does indeed exist. OBrien is thorough and concise in his explanation. We see very subtle clues however, that OBrien could be leading Winston into a trap. He is unsurprised to hear Winston repeat the quote from his dream we shall meet again in the place where there is no darkness and repeats it himself as though it were repetition of a previously held conversation in the place where there is no darkness he said, as though he had recognised the allusion. (Page 185) He also says earlier we are the dead (Page 183). This was something Winston had said earlier in the book that OBrien couldnt have heard unless he had been spying on him. Despite this Winstons admiration grows for OBrien to almost worship. Again this reinforces Winstons weakness. Despite the fact that OBrien could easily be a member of the thought Police attempting to entrap him, he is quite willing to admit to being a thought criminal. Even though OBrien gave off a suggestion that he may have been spying on him, Winston suspicion is not aroused and in fact his admiration of OBrien is increased. OBrien seems to be everything Winston is not. Winston is neurotic, nervous and physically weak. He lacks the power to change the world he lives in and looks to others to take the initiative and lead him in his revolt against the system. OBrien is so calm, cool and collected. He gives off an air of inner strength and power this is accentuated by his strong physical form. Despite this he also has a softer, kindly side to his nature. He seems to have all the answers to Winstons questions and makes him feel safe When you looked at OBriens powerful shoulders and his blunt-featured face, so ugly yet so civilised, it was impossible to believe he could be defeated (Page 183). Winston shows all the classic signs of looking toward OBrien as a father figure. Later on after receiving the book from OBrien, a piece that Documents the true state of the world and how to bring down the party, Winston is captured by The Thought Police He is taken to the Ministry of Love There are no windows and the lights are constantly on. Suddenly the statement the place where there is no darkness comes into focus. What had seemed like a positive analogy with the Darkness alluding to the unpleasant world of 1984 is turned on its head. What was really meant was that the place where there is no darkness is actually a jail, where the lights are never turned off. Winston still has a blind faith in OBrien and futilely believes that OBrien may try and save him. However, OBrien and Winston are about to meet again, but their relationship is about to enter a new stage. When OBrien appears at the door of his cell, Winston even now deludes himself into thinking that OBrien has been captured. However he soon puts Winston straight indicating that he is Winstons incarcerator and telling him You knew this Winston and adds you have always known it (both Page 251). After a series of beating that degrade Winston to a state of almost complete humiliation, OBrien begins to interrogate him. OBrien begins by breaking him down with a series of torture techniques and drugs. In one instance, OBrien takes Winstons symbolic stance that Freedom is the Freedom to say 2 + 2 = 4 and through a series of Electrocutions makes Winston start to believe that 2 + 2 actually = 5. OBrien tells Winston that by controlling memory and records, that The Party can dictate reality who controls the past controls the future and who controls the future controls the past (Page 260). OBrien also tells Winston that they do not intend to punish him, but simply convert him to their ways of thought, before he is executed. OBrien has undoubtedly become Winstons tormentor, putting him through horrendous torture. He has broken Winston down and begins to undermine all of his free thinking ideas. OBrien and Winston move toward a Teacher/Pupil relationship. Like a promising student Winston questions OBriens beliefs, forcing him to justify them. Whilst OBrien almost sees Winston as a proti gi e, trying to show Winston the error of his ways He had the air of a Doctor, a Teacher, even a Priest, anxious to explain and persuade rather than punish. OBrien also displays an ability to read Winstons mind. It may be that he has a telepathic power, but it could also be the scientific approach that OBrien seems to take with everything he does. He is an expert in the subject of thought. I believe that he has studied Winston in immense detail over many years and can actually predict his thought patterns. OBrien has already thought out their conversations in his head and predicted Winstons responses. He is an experienced interrogator and probable member of the Thought Police. It is likely he is able to pick up from a persons expressions and body language what they may be thinking. I also think that the link between them may have seen OBrien take a special interest in Winston, maybe the same thought patterns had crossed OBriens mind at some stage in his life. Eventually Winston is almost completely cured. However, he retains his love of Julia. OBrien decides to expose him to his worst fear in Room 101. Winston wears a mask that allows rats to be released on his face. He has an immense fear of Rats and finally screams out for them to be released on Julia instead of him. Finally OBrien has reached through into his soul and Winston is truly defeated. The book ends with Winston drinking coffee in a bar where Traitors live out their days before execution. Winston has abandoned all his ideas of free thought and rebellion. He realises that rather than hating Big Brother, he actually loves Big Brother. OBrien and Winstons relationship goes through several stages. It starts with Winston seeing OBrien as a hope, somebody who might be having the same thoughts as him. Then he believes OBrien will be the freedom fighter who will put an end to the totalitarian state the world has become. Finally he becomes Winstons tormentor, inflicting pain on him in order to cure him of his disease. Through all this though OBrien and Winstons relationship maintains a theme. Winston looks up to OBrien as somebody with immense Power, who can protect him and control his destiny. Even during torture when OBrien is unseen Winston believes he is there, orchestrating the beatings and keeping him alive. He believes blindly throughout that OBrien is his saviour. In the end perhaps OBrien does become his saviour. Winston finally is released from the fear of Big Brother and detection for thought crime. He loves Big Brother and looks forward to his execution. In the end, despite the tragedy of his failure, Winston finally seems to be able to face his fate alone.

Impact Of Using Flash Cards English Language Essay

Impact Of Using Flash Cards English Language Essay Vocabulary as the essence of a language is one of main tools for language learning, and has been the object of many studies. In fact, the vocabulary learning is considered as the heart of language learning and main component of language teaching (Laufer, 1997).In the past, the vocabulary was given little priority in the literature of English language learning and teaching, and received only incidental attention in textbooks (Hedge, 2008; Richards Renandya, 2002). This may refer to the assumption that expressed the lexical instruction is not necessarybecause it can be occurred by itself (Moir nation, 2008). Therefore, this assumption made the vocabulary teaching no popular on that time (Nation, 1990). Several studies have recently discussed about lexical problem of language learners. For example, communication is generally associated with the lexical problems because it breaks down when people do not know the right words to use (Allen, 1983; Bowen, 1985). Nowadays, it is more accepted that vocabulary plays an important role in a language learning and teaching. For example, Griffiths (2003, 2006) showed the importance of vocabulary teaching to the language learners has been acknowledged. Hence, there is an increasing interest in the vocabulary learning as main part of every language learning and teaching. Although there is a number of studies on the field of vocabulary learning (Folse, 2004; Hunt Beglar, 2005), but its most effective means is still unclear (de Groot, 2006). For vocabulary learning, one way is finding the means of words in the dictionary and adding them in ones vocabularies. Another way is using vocabulary card or flash card that is faster process than the previous way to increase word power. The flash cards can be studies almost anywhere and anytime, especially when one has a free time, even very short (Brown, 2000). In addition, they can be arranged as logical groups of the target words (Cohen, 1990; Gairns Redman, 1990).Some studies reported that language learners could more effectively improve their vocabulary by using the flash cards instead of word lists (MondriaMondria-de Vries, 1994; Schmitt Schmitt, 1995). In the history of language teaching, the flash cards have been used for many purposes such as (1) to improve word recognition ability of students who are poor in reading skill (Culyer, 1988); (2) to practice vocabulary development of student during their foreign language learning (Ervin, 1988);(3) to teach English as second l anguage (Hart, 1982); (4) for teaching structure of sentences, articles, propositions, and tenses (Palka, 1988), and; (5) to improve the reading and comprehension speed (Tan Nicholson, 1997). Ehri and Roberts (1979) compared language learning ability of first graders based on printed words in context and in isolation. Their results indicated children with flashcard-training base learned more about the orthographic form of words, while the context-trained children learned more about the word semantic identities.Cuvo and Klatt (1992) evaluated the impacts of three instructional conditions: 1) teaching sight words by using flash cards; 2) community-referenced sight words, and 3) teaching the phrases with a videotape setting and sight words with the natural symbols in community to youths with moderate mental retardation. The results represented that learning and recognition of the community-referenced sight words was very fast in all three conditions, while a generalization from the flashcard and videotape conditions occurred to the community sites. These results confirmed the positive effects ofusing flash cards for learning a language; even some studies have reported that t he flash cardsshould be used as a tool for creating fun in classrooms (Nicholson, 1998). Report byDin and Wienke(2001) showed using flash card is an effective approach in learning and training of chemistry vocabulary and study for high school teachers and students. In addition, study about effects of using flash card and word list approaches on language learning ability of EFL student (Learning of foreign language vocabulary) determined no significant difference in the effectiveness of both methods Baleghizadeh and Ashoori (2011). The literature review indicates that efficiency of using flash cards method in the vocabulary learning and teaching process is limited, and needs to be re-evaluated. Review of literature Acquisition of vocabulary is one of the most challenging parts for language learning. In order to solve the problem of forgetting learnt words by language learners through the time, teachers can attempt to use learning devices into their classes. Thus, this study would like to present a newvocabulary learning tool that called Vocabulary Flash Card (VFC). Many researchers agree that curriculum designers and EFL educators will feel that their responsibility in language learning and teaching is more sensitive after knowing there are individual differences in learning process.Furthermore, it will help them to fit teaching and learning in order to develop studentsEFL learning potentials, and to support students to become familiar with the approaches they can learn most effectively. In addition, it canassist to the students forcreating and developingother techniques and tools which can motivate language learners more than before. Better understanding on studentsopinions about the vocabular y learning process and using techniques enables teachers to design and provide suitable materials and activities for improving the students vocabulary learning and lexical competence. Problems resulted from lack of vocabulary knowledge may be the main barriers to successful language learning. Therefore, finding solutions for these problems may greatly help both language students and teachers. To prepare guidelines for solving vocabulary acquisition problems, the first step is to discover those problems and identify their nature. Hence, this study by revealing main problems of vocabulary learning and give solutions to them helps English teachers, students, curriculum designers, and may be parents to change their using strategies for English language learning to the new and more applicable ones such as Vocabulary Flash Card (VFC) using. Flashcard is a card, one side of card includes new vocabulary and the other side includes translation or synonym. According to EslahkarKomachali and Khodareza (2012) flashcard for EFL teaching or self-study has been useful tool for teachers and learners.Nation (2001) describes this strategy in learning vocabulary in another language that a learner writes foreign word on one side of a small card, and its translation of the first language on the other. The learner goes through a set of cards and tries to recall its meaning.as Tan and Nicholson (1997) stated flashcards have been used to improve both comprehension and reading speed.Some researchers have criticized using flashcard for stressing memorization over comprehension and others have argued that they should be used as a devise to create fun classrooms (Nicholson, 1998). In the past more teachersemphasized on the grammar, they pay less attention on the learning vocabulary. While grammar translation approach to the teaching of language provided a balanced diet of grammar and vocabulary, audiolinguisticssuggested that emphasis should be strongly on the acquisition of the grammar patterns of the language (Shakouri and Mehrgan, 2012).It was believed that if learners were able to internalize these basic patterns, their large vocabulary building comes later (Nunan, 1991). There are some reasons and factors about why teachers neglected vocabulary in the past.During the period 1940-1979,Allen (1983) outlined two reasons: (1) it has emphasize too much in language classroom during the years before that time, and people considered it as the only key to language learning, and; (2) the meaning of words couldnot adequately be thought, so it is better not to try to teach them. Results from Zimmerman (1997) would also lead us to think that most second language learners have traditionally been through by methods gave minimal attention to vocabulary, so it seems reasonable to expect most teachers will continue to neglect vocabulary language, whether it is because of the methods by which they have learn the methods by which they are learning. Conclusions Researchers are always trying to find appropriate ways to facilitate learning vocabulary. Learning vocabulary is different in different situations and levels. Using flash cards comes from anaudio-lingualmethod. Teachers pay less attention to using flashcard in teaching and methodology. This article tries to determine the effect of using flashcard on promoting students knowledge of vocabulary,according to shakoori and mehrgan (2012) using flashcard is not effective in learning abstract words. For teaching abstract words it is better to create context, whileusing flashcard enhances learning vocabulary. Both students participations in classroom activities and performances on vocabulary test have been significantly increased after using flashcard. This study indicates there was different between using flashcard and traditional teaching method. They believed that using flashcard is much better than traditional method according to four reasons.(Mondriya and mondria-de vries, 1994; nalcata; schmith and achmitt, 1995) . First new words can be easily practiced extensively with flashcard. Learners can separate cards into several categories based on their difficulty level. It helps them to review the new words. Second, working with flashcard increases vocabulary retrieval. Since learners are presented with a second language word and its definition on the other side of the card, they can easily practice new words and recall their meanings in as much as the words appear on two different sides of the card. Third learning words through traditional method, because some words may receive less attention than others because of the particular positions in the class. Nevertheless, there is not such a problem in learning with flashcard since th ey tend to be more flexible.

Risks and Benefits of Modern Technology

Risks and Benefits of Modern Technology The Internet and other emerging technologies have been a source of help to organisations in the modern time. It could be argued that having a form of modern technology is inevitable in the bid to remain competitive. Information Technology industry and media commentators claim that businesses stand to gain many benefits from use of the Internet. There is no doubt that the internet has transformed the way organizations operate at present, not only do these improve processes, financial benefits are also increased. While successful examples of companies using the net have been widely reported, few studies have seriously examined the issues involved. However, there is always a flip side of the coin in everything, as the internet and the other emerging technologies have their benefits to organizations. There are also the disadvantages. This paper will seek to analyze both sides in detail and put forward possible solutions backed up by research which will reduce the risk of digital business. George (1988) defined Emerging Technology as science based innovations that have the potential to create a new industry or transform an existing one. They include discontinuous technologies derived from radical innovations. Examples are bio therapeutics, high-temperature super conductors, MRI imaging, Touch screen kiosk and the Internet. The Touch Screen Kiosk is a new java-enabled technology. Touch-screen kiosks go beyond the capabilities of a traditional time clock in that they are true information appliances. They provide a bridge between the organization and the workforce, both capturing workforce information and extending organizational information back to the employee. A kiosk-based solution for time, attendance, and labour tracking also offers organizations a tool for empowering employees with self-service. With the touch of a finger, employees can view Internet-enabled applications that display their schedules, vacation balances, and corporate messages or allow time and labou r data entry. Workforce management can now be a two way street. (Rizzo, 2001) The Internet started in the 80s and since then it has had a drastic impact on culture, commerce and business and due to the speed, litheness, and effectiveness that it offers, it has become the means for accomplishing a growing amount of business between suppliers and large international companies. With this, the Internet has created new business to developing countries and has hastened the distribution of knowledge throughout the world of business. It thus creates unprecedented opportunities for developing countries because it can remove barriers thereby fostering full participation in the new global economy. Some organisations use the internet for almost every part of their organization such as buying and delivery of goods, stock control, manufacture arrangement, communications plans, sales programs, service departments and support programs. The change from traditional communication channels such as salespeople, telephone and snail mail to the internet and e-mail happened quickly i n some companies. However, this transition took place slowly in others. (McKenna and Bargh, 2000) Emerging Technologies have instigated a new transaction method that decrease costs, hastens the pace at which transactions are carried out, and supply acces to new markets, new customers, and new business relationships of all kinds. Even with all these benefits that the internet has brought to the business world, there are still a lot of risks involved such as fraudulent transactions, scams and more. This research would explain all these risks and benefits in detail. The Internet has enabled business to go far beyond previously set or imagined boundaries. Today, change is constant, its speed is accelerating, and its global impact is felt everywhere. While the Internet offers many potential benefits, there are a number of unresolved issues in conducting business on it. Despite recent advances, security remains the most fundamental concern and the main reason why companies hold back from full use of the net (van Kirk, 1994; Baron, 1995). Iver (2003) explains that online business is an infinite term about the different business procedures that plan to assimilate the merchants with the consumers and suppliers using the Internet. The whole procedure of putting up a website, helping the potential customer steer through the site, showing them the accessible products, offering cut rate and coupons and doing everything possible to persuade the potential customers and changing them into customers, comes under the process of e-business. He further went to discuss about Electonic commerce which is a compartment of e-business and is defined as online business that can be accounted for in financial terms. For instance, paying for goods and products with credit card by the consumers or shopping and paying online are examples of electronic-commerce. E-commerce could be explained as the last phase of e-business which involves the payments of the products sold by the organisation. The use of the internet has several disadvantages when conducting business transactions. According to Iver (2003), the main disadvantage of online business is the poor growth rate in certain segment on account of goods. For example, the food sector has not profited in terms of expansion of sales and resulting profits generation due to some certain reasons like food products being an unpreserved item. Customers hardly search for food products and items on the Internet because they rather go to the stores to purchase the required product when it is needed. It is also very easy to go into the online business as almost everyone has a laptop and is connected to the internet. This gives room for fraudulent activities since there isnt proper security in place to monitor the number of people that develop shopping websites. Trust is also a major issue in online business because any problems with your business website will be immediately be obvious to the world and the customers typically have little loyalty. Due to competition, once your website is unavailable, customers will simply move on to one of your competitors. In addition, technical failure can also have a significant impact on a companys key trading partners. Sid (2007) also discussed about the disadvantages of online business based on internet services and trust issues. Internet Technology According to Sid (2007), he discussed about the disadvantages of practising online business. The first point is that the website of the business must keep functioning at all times; this is the equivalent to a physical store staying open. If an Internet business goes offline due to technical issues, it can cost them profit; therefore, it’s essential to either have the technical skills or have someone in the company that possesses the technical skills to keep the company functional at all times. Trust Sid (2007) also explained about the behaviour of people shopping online. In many people’s minds, purchasing products over the Internet is still not as safe as purchasing products in stores. Since people cannot see the person on the other end of the computer, they might have issues purchasing products. This is also dependent upon the products and the sector. Lacking consumer’s trust can significantly impact sales and overall success. According to Lewis (2002), internal network protection will be a big issue for the organizations that wish to offer their services to Internet-using customers around the world. Hackers and other internet criminals can infiltrate company files and infect them with a virus, which is then sent to other computers to infect them. If the networks are not secured such people could also find important information about the company. Newly publicized weaknesses in the basic structure of the Internet indicate that the worldwide computer network may need a time-consuming redesign before it can be safely used as a commercial medium. Lewis (2002) further went to explain about how hackers can easily get access to different companies and can cover their traces without any major concerns. They like to trade data illegally and sell data to the hacker community. Calling-card numbers from long distance telephone service providers, cellular service activation codes, stolen credit-card numbers, security-p enetrating algorithms and pirated software codes are among the data most frequently traded on the Internet. Hackers might also bombard a company with thousands of mail messages using automatic remailer tools. The posting of messages can knock out communications at a critical time in a competitive situation and even firewalls cannot protect a company well against these attacks. Jerkins (1995) explained about Information security which is based on three foundations: Data integrity A company must be sure that its data have not been changed. Confidentiality of data Companies have to be able to keep to themselves what they do not want others to know, such as their customer database, credit card numbers, etc. Authenticity Companies need to be sure that messages they receive from the Net are from the people they claim to be. If any of these factors can be infiltrated by hackers, the company is no longer secure.Another risk is the increasing number of information brokers who use online communications to match buyers and sellers. Criminals always seem to always have an edge over law enforcement agencies.An online Internet organization also faces other challenging risks. Cafasso (1996) explains the case of staff members that always download adult material from the internet and go further to show them around in the work environment. This can create a hostile working environment and employees that view the adult material might feel sexually harassed within the company and could press charges. The company will have to ensure that employees cannot download such media files or other offensive materials from the Internet. It will have to develop strict guidelines to protect its own interests and the uncontrolled surfing habits of its employees.To do business on the Internet successfully, companies will have to en sure that the customer is indeed the person he or she claims to be. Verification and confirmation, written with an e-mail system, will work well enough for the time being. The advantages of using the internet or emerging technologies were explained by Iver in 2003. Worldwide Presence According to Iver, 2003, this is the major benefit of transacting dealings online. An organization using e-business can have a countrywide or a global presence. For example, IBM was one of the first firms to start practicing e-business to service customers and work in partnership with business associates all over the globe. Dell Inc. also had a prosperous business selling computers all over the US, through the telephone and the Internet till 2007. Amazon.com is also an accomplishment story that assists customers buy globally from third parties. Hence, global presence is guaranteed if organizations reorganize their business by using the Internet. Cost Effective Marketing and Promotions The use of the web to advertise products ensures global reach at a small price. Advertising techniques like pay per click advertising guarantees that the promoter only pays for the advertisements that are really watched. Affiliate marketing, where customers are directed to a business portal because of the efforts of the affiliate who in turn receive compensation for their efforts meeting with success, have emerged on account of e-business. Associated marketing has assisted both the business and the associates. Organizations making use of e-business have handled to use cost effective online advertising strategies to their advantage. Developing a Competitive Strategy Organizations need to have a competitive strategy over their rivals because without an effective strategy, it will be difficult to sustain the advantage and make proceeds. The strategy, that the organization can chase, can be a price strategy or a differentiation strategy. For instance, till the year 2007, Dell Inc. was selling PCs only through the Internet and the phone. It took up a differentiation strategy by selling its PCs through the internet and personalizing its laptops to meet up with the requirements of the customers and it really helped their profits. Thus, engaging business online resulted in Dell Inc. being able to acquire a large sector of the market by making use of the differentiation strategy. Better Customer Service Iver (2002) explained that doing business online has produced an improvement in customer service. Occasionally, when going through a website, the customer is always met by a pop-up chat window. Readily available customer service may assist in encouraging the customer to know more about the product or service. Furthermore, the products can be paid for online and can be shipped to the customers home. Internet services allow for asynchronous interaction and provide convenience for the client. The Web also makes access to people in remote areas feasible. This assistance, says Snow (2001), is able to bridge distances and help overcome a wide assortment of isolation economic, physical, emotional, geographical. Doing business on the Internet will become even more essential in the future. More organizations will have the right to use to the Internet and, with the price of communication reducing; more customers will come to the Internet as well. The Internet offers remarkable possibilities and could, in the long run, surpass conventional distribution channels. It is very simple to get connected to the Internet and people can browse and shop on the Internet 24 hours a day, if they want to. The Internet offers an exceptional way to get in touch with the customers on a one-to-one basis. Better emerging technologies will help organizations to represent themselves better and sell more products. So for people to keep enjoying the benefits on the Internet, it is important that the security issues must be addressed. Security on the Internet is a very vital issue, and some good solutions are beginning to form. Organizations that use the internet often need to protect themselves in three major areas: data integrity, confidentiality of data and authenticity. It becomes more and more key to avoid hackers from stealing or tampering with data stored in organisations systems. This can be done by installing firewalls or routers. When data travels on the Net, it is normally intended to be read only by sender and recipient, which can be ensured with encryption systems. Finally, an organization wants to be sure that the parties it is communicating with are really who they claim to be. Authenticity can be obtained with digital signatures. Doing business online involves some risks, like any other business transaction. But if attention is devoted to installing secure procedures, it is no more risky than other business practices. Since security is essential in online business because of all the risk involved, one of the major organizations that provide such security for banks and other large organizations that deal with online business is Panda Security. It is one of the major leading IT security providers and an antifraud service for doing business online to guard against identity theft through malware attacks targeting banks that operate online, platforms for payment and electronic-commerce. This procedure advises companies when there is a targeted attack and provides the gears to spot and obstruct affected users which reduce any possibility of online fraud. This solution allows banks and organizations providing online services to ensure that customers initiating businesses on their websites are not contaminated by any malevolent code that affects the service. They can see the security status of their customers and efficiently supervise the danger involved in online business. This radically reduces the poss ibility of fraudulent actions. The benefits that this service offers organizations include: Reduction of online fraud Panda Security for Internet Transactions provides tools and information to stop fraudulent activity. Organizations are instantly notified whenever there is a new malware attack targeting their customers, and delivered the information needed to respond in time. Organizations will see how the malware operates and how they can protect themselves. They can prevent infected customers from accessing their website, reducing the effects of online fraud. Control and management of threats to online transactions This is the only service on the market offering information about the security status of clients. This can be used by an organization to create risk profiles, meaning the service can be configured to restrict the permission to carry out transactions to those clients that meet pre-determined security requirements. Expanding business thanks to improved security Users lack of confidence in online security is one of the prime reasons for their reticence to use Web services. This tool reduces online fraud and allows companies to offer clients a secure environment for online transactions For the business community, the Internet is a new limit, offering matchless prospects for development and growth. Organizations can provide their services throughout the world, with the variety of services multiplying daily. It is also obvious that the advantages of using the internet and other emerging technologies for business is by far more than the disadvantages so organizations would continue to use them and keep trying to find ways to reduce online fraud and scams. Practising online business involves some threats just like any other business deal. But if concentration is dedicated to installing secure measures, it is no more dangerous than other business practices. As a matter of fact, it is not safe for your organization not to be represented on the Web if you are related to the technology industry in any way: the Web will be the first place prospective customers will look for you, expecting to find you there. There are unique opportunities on the Web for marketing a companys services, selling products and gathering information. References BBC (1999), â€Å"Internet scam file†, BBC On-line Network, 7 April,news.bbc.co.uk/hi/english/business/your_ Brewer E. (15), â€Å"Internet flaws a setback for commerce†, New York Times Personal Technology. Cafasso, R., When security isnt what it seems, Enterprise Systems Network Management, March 1996, pp. 72-84 Cyber-Smut: Regulating Obscenity on the Internet; Kaplan, Rebecca Dawn Stan. L. Pol’y Rev.; 1998 Vol. 9, p189, Edward Rizzo 2001 Emerging Technologies and the Internet Enable Todays E-Workforce http://community.19actionnews.com/_zhangyan-has-added-Advantages-of-E-Business/BLOG/2275620/2165.html http://www.abestweb.com/forums/showthread.php?goto=lastpostt=103922 http://www.buzzle.com/articles/advantages-and-disadvantages-of-e-business.html http://www.ehow.com/list_6023059_disadvantages-e_business.html http://www.marketingservicestalk.com/news/pan/pan113.html http://www.pandasecurity.com/virus_info/exports/rss/pandaes.xml Jenkins, L., Doing business in a global marketplace: secure electronic commerce, Ciphertext The RSA newsletter, Vol. 3 No. 1, Winter 1995, pp. 1, 8. Jim Drinkhill, 2001, Journal of Financial Crime, Computer Fraud, Vol. 4 No. 3 Lewis, P. (22), â€Å"Security of personal data is lost in cyberspace†, Computer Information Systems. McKenna, K. Y. A. and Bargh, J. A. (2000) Plan 9 from cyberspace: The implications of the Internet for personality and social psychology, Personality and Social Psychology Review, Vol. 4, pp. 57-75. money/newsid_313000/313051.stm. SEC (1998), Internet Fraud: How to Avoid Internet Investment Scams, US Securities and Exchange Commission, Washington, DC, October, www.sec.gov/consumer/cyberfr.htm Sid, J. (2007), World Wide Web Marketing – Integrating the Internet into Your Marketing Strategy, John Wiley, New York. NY Snow, S. (2001) Is Online Counseling Ethical? Available: http://www.commcure.ethicsonline.html. Accessed Aug. 26 2003.

Thomas Malthus :: essays papers

Thomas Malthus Two hundred years ago, Thomas Robert Malthus wrote â€Å"An Essay on the principle of population† in which he argued that the world population would increase faster than the food supply. This would cause disastrous results for the general human welfare. A world population of 250 million at the time has now gone up to about 6 billion. This is in spite of wars, plagues, famine, and epidemics. World food production has been keeping pace with population growth until recently. If the world food supply had been distributed equally to each member of society in the mid 1980’s, with a population of 4.7 billion people, each person would have gotten a weekly diet of 11 ponds. This included meat, grains, and fish. In today’s society, the population has increased over one billion and the food supply has gone down to about 10 pounds per person per week. A world population of 10 to 11 billion by mid century would leave each person with only 6 to 7 pounds per week. This is the same as the diet that people living in poverty get in our present day society. However, by trying to help poverty, we are (according to Malthus) making the situation worse. IN the short run, there seems to be an improvement because those poor people are better off and can do well. This situation would lead to a larger population than before. This in turn would lead to more people becoming impoverished due to lack of food supply. Malthus believed that if people left poverty alone, it would take care of itself. At the start of the 21st Century, it is very easy to debunk his starting point that population grows â€Å"geometrically† while food supply only â€Å"arithmetically†. This will lead to a widening gap between population and food supply. However, by saying that, he was mistaken, the improving technology has meant that food supply has also increased geometrically. If we were to take a mathematical approach to this, population, food production, energy use, industrial production, waste production, etc. are all increasing under mechanisms that can shown on an exponential curve like a parabola, then all will be approaching a vertical asymptote.

Irritable Bowel Syndrome :: Exploratory Essays Research Papers

Irritable Bowel Syndrome A short car ride home or sitting in the middle of a class can be an uncomfortable and painful experience for someone with irritable bowel syndrome. Irritable bowel syndrome (IBS) is a disorder of the large intestine (colon) that interferes with the normal functions of the bowel (NIH, 2003, para.1). Symptoms may vary from person to person, but usually characterized by diarrhea, bloating, constipation, and abdominal pain. According to the National Institutes of Health, 1 in 5 Americans have IBS and women around the age of 20 are more prone to it, making it one of the most common disorders diagnosed by doctors. To diagnose IBS, make an appointment with your doctor to have a medical test done such as a physical exam, blood tests, x-ray of the bowel, or endoscopy (AGA, 2005, para.4). The physical symptoms of IBS are that you must have had abdominal pain or discomfort for at least 12 weeks out of the previous 12 months, although they do not have to consecutive. Also, if your abdominal pain or discomfort is relieved by having a bowel movement, then you may have symptoms of IBS (NIH, para.4). Unfortunately there is no cure for IBS, but there are a wide variety of options to treat the symptoms such as medications, stress management, and diet changes. Antidepressants may also relieve some symptoms of IBS. In people with IBS, stress and emotions can strongly affect the colon. As college students we deal with stress every day, and in order to keep stress from causing serious physical harm, you must know how to deal with it. If you are feeling mentally or emotionally tense, angry or overwhelmed this can trigger colon spasms in people with IBS. These strong muscle contractions can result from mental stress because the nerves that control the normal rhythmic contractions of the colon are connected to the brain (AGA, para.3). Some suggestions for stress reduction are to get an adequate amount of sleep, exercise regularly to reduce tension, explore the benefits of meditation and yoga, and eat a well balanced diet. The way you eat can also affect the symptoms of IBS. As evidenced in research, dietary fiber may lessen certain IBS symptoms such as constipation. Diets high in fiber consist of whole grain breads and cereals, beans, fruits, and vegetables (Alice, 2003, para.2). Also drinking six to eight glasses of water is important, but drinking sodas and carbonated drinks can result in an increase in gas and discomfort.

Are Reason and Emotion Equally Necessary in Justifying Moral Decisions Essay

Emotion and reason are two different ways of knowing but can both be used in the same situation. However, does one have a higher weighting than the other when it comes to making moral decisions? Using reason to make a knowledge claim or moral decision requires rationality and is justifiable, meaning that everyone would be able to understand the argument for it. Emotion on the other hand is usually simply a ‘gut feeling’ or an opinion of an individual and therefore has no evidence or points to support a decision. An example could be when it comes to whether it’s right or wrong to murder someone. It’s generally accepted that it isn’t because, using reason to justify this, everyone should have equal rights and it’s unfair for one person to take the life of another. One person may have the opinion that they do have the right to murder someone else but their argument would not be as strong since it would simply be their opinion of the case. Another example could be homosexuality. Many people who are against it claim that it’s wrong because ‘it’s not natural’ but when thinking of the argument rationally, this would mean cars, airplanes and TVs would also be considered wrong since those things aren’t natural either. Arguments made using ethics and emotions are not usually consistent and this is why reason is a better way of knowing because it can be applied to many cases. However, sometimes both emotion and reason can be used equally in justifying a moral decision such as when it comes to abortions. According to ethics and emotions, abortion is murder (since the baby is a human being) and murder is wrong (as all lives are valuable and it’s unjust to take another one’s life). Reason can come in to justify these arguments as well as add the point of the medical complications and effects abortions bring. On the side for the legalisation of abortions, justifiable points includes if the baby has a life-threatening disease or if the mother does that would be pass down and therefore the baby would lead an unhappy and sick life, if the parents are unfit for the responsibility of parenthood (for example, alcoholics, drug-addicts, teenagers), if the mother was unmarried and lived in a strict eligious society, if it was caused by rape and therefore would be unfair to the women as well as cause psychological harm and the fact that the government is intervening and reducing the freedom of choice for women simply goes against basic civil rights. Emotions are involved in the decision to abort a baby because mothers want what’s best for their baby and in most abortion cases, the reason behind it is because they feel their baby would not live the life they deserve . Whether it’s because they’d spend most of the life in a hospital with an incurable illness or because the mother knows that she wouldn’t be good enough for the parenting job. When it comes to making any decisions, whether it’s a moral one or not, reason should be considered more as it uses rationality and therefore is easier to explain and justify a decision to others. Emotions aren’t necessarily permanent or consistent and so it would be more difficult to try to get others to understand why you’ve made a certain decision.

Management Control Systems Final Written Case Assignment

Management Control Systems Final Written Case Assignment Budgeting and Performance Evaluation at the Berkshire Toy Company Prepared for: Karen M. Foust, Ph. D. , C. P. A. Adjunct Professor at Tulane University A. B. Freeman School of Business New Orleans, Louisiana Prepared by: Andres A. Calderon andres. [email  protected] com PO Box 21420 Baton Rouge, LA 70893 Date: September 4, 2000 Background Janet McKinley’s father, Franklin Berkshire, founded Berkshire Toy Company (BTC) in 1974.In 1988 Janet worked her way up to the position of Assistant to the President after completing her MBA. Janet promoted employee participation and teamwork. The company went public in 1991, and in 1993 Mr. Berkshire retired, leaving Janet as corporate CEO. In 1995 Quality Products Corporation, a company with a wide variety of products, acquired BTC for $23 million. Janet had an agreement that allowed her to continue to work for BTC for at least 5 years at an annual salary of $120,000.The company h ad a staff of 241 employees organized in three different departments: purchasing (11 employees managed by David Hall), production (175 employees managed by Bill Wilford), and marketing (52 employees managed by Rita Smith)1. BTC produces a fifteen-inch, fully jointed, washable, stuffed teddy bear. The bear is packaged in a designer box and is accompanied by an unconditional lifetime guarantee, and a piece of chocolate candy. The bears are accessorized according to customer order specifications. Internet sales began in 1997.Janet has just received the June 30, 1998 income statement showing Operating Income at $1,632,317 below budget, while Total Revenue is at $1,440,487 above budget (see Exhibit 1). Janet is having trouble understanding how the company’s revenue is thriving, but the company is not generating profits as expected. Current Situation BTC is a decentralized division of Quality Products Corporation that has been experiencing growth in sales over the past four years ( see Exhibit 2a). BTC’s strategy is to have an enhanced product image, build customer brand loyalty through product differentiation, and produce an all American quality product.BTC implemented a management compensation plan in 1997; the plan is structured as follows: †¢ †¢ David at Purchasing: 20% of net materials price variance, assuming favorable Rita at Marketing: 10% of excess variance of net revenue, assuming favorable 1 The remaining three employees are Janet, her secretary, and her secretary’s assistant †¢ Bill at Production: 3% of net variance in material, labor, variable overhead, labor rate variance, and the variable and fixed overhead spending, assuming favorable variancesThe bear is hand made and the quality of material acquired by purchasing can negatively affect production generating excess waste or potentially jeopardizing the quality of the product. Marketing sells the bear through catalogs, company’s retail store adjacent to the fa ctory, Internet sales, wholesale to department stores, toy boutiques, and other specialty retailers. Most orders are shipped the same day as they are received. Commissions of 3% are paid on retail store sales and sales to wholesale buyers, no commissions are paid on catalog sales.Internet sales began in 1997 with bears being sold at a wholesale price of $32. The Marketing and the Purchasing departments seem to be operating well, but the Production department manager has identified the following problems: production was affected by materials ruined during flood, raw material is substandard, high rate of product stock-out, deviations from standard production plans, overtime to met sale demands is high, overworked staff, plant is at maximum capacity, and maintenance is almost impossible to be scheduled. Analysis of the Case Non-quantitativeBTC could work an alliance with its supplier in such a way that raw material is guaranteed to meet high levels of quality. Currently Bill in product ion receives the raw material from David at purchasing, so inspections for defective material happen at the time of production and under the pressure of orders piling up awaiting production. David does not have any incentive to provide quality, but just to reduce his cost. Current incentive plan is not working to the advantage of the Production department, it is not fair to have bonus linked to factors that cannot be controlled by the responsible manager.Incentives are structured in such a way that they encourage â€Å"low balling† revenue figures by the Marketing and â€Å"high balling† raw material price budgets by the Purchasing manager. A budget of zero sales to be achieved by the Internet deployment, supported by an expensive national radio campaign, is not acceptable and should not be rewarded. Quantitative Analysis The favorable sale revenue of $1,440,487 can be explained by a favorable impact of Internet sales2 (+307%), an unfavorable effect of the Retail and C atalog sales (-214%), and a negligible budget variance (+7%) explained by the Wholesale efforts.Ninety one percent (equivalent to $2,300,980) of the unfavorable Total Variable Cost variance ($2,515,896) can be attributed to unfavorable variances in: Direct Labor (39% or $980,305), Variable Overhead (27% or $679,361), and Variable Selling Expense (25% or $641,314) (See Exhibit 4). Almost the entire unfavorable variance of fixed cost can be attributed to the unfavorable variance in Selling Expenses. The Direct Labor3 variance is mainly due to a variance of 42% (from 1. 2 budgeted to 1. 7 actual) labor hours per unit and a variance in salary rate from $8. 0 budgeted vs. $8. 17 actual. The Variable Overhead also affected by the unfavorable 1. 7 hours per unit of direct labor, contributed with an unfavorable amount of $181,639 (see Exhibit 6c). The Variable Overhead Cost per Hour went up due to the additional overhead. The Variable Selling Expense caused an unfavorable variance of $ 443, 100 due to the added cost per unit (see Exhibit 6c). Average price per unit sold $44. 37 compared to a $46. 45 budget. The mix variance stemmed mostly from a price difference between Retail & Catalog ($49) and Internet ($42) sales.The 280,000 units are distributed between Retail & Catalog (85%) and Wholesale (15%) sales. Using the Static Budget Mix expected sales are of $15,122,083 (see Exhibit 5). Fixed Cost Selling Expenses caused an unfavorable variance of $560,192 to the budget, compared to a negligible favorable increase of $261 to budget due to the Fixed Cost Administrative Expense. 4 Almost half ($225,627 favorable) of this unfavorable variance is counteracted by the higher than budgeted output and a fixed manufacturing overhead per unit of $ 1. 674 compared against the budgeted $1. 97. The overall unfavorable $114,910 Fixed Manufacturing Overhead is due to the variance in labor hours per unit. Due to 2 3 Or better said a very unrealistic â€Å"low ball† budget of Inte rnet sales I attribute this to the fact that the company works on an â€Å"order received basis†, instead of forecasting production. the incentive structure at BTC, David Hall has been buying â€Å"cheap† polyester filling and accessories, causing an unfavorable price efficiency variance of $49,609.Sales and Total Cost unfavorable variance of $ 2,669,607, compared to $1,632,317 budgeted can be attributed to poor sales mix performance (unfavorable Budgeted Sales Variance $675,589) and unfavorable Labor Volume Variance ($437,338)5. Incentive Program It is my opinion that the incentive program at BTC is the major contributor to the unfavorable variances. David Hall is rewarded for purchasing â€Å"cheap† raw material, which is affecting production. Rita is rewarded for selling products over the Internet at prices that are not appropriate.For a bonus allocation in dollars please refer to Exhibit 7, Incentive Plan (better named: â€Å"Let’s all gang against p oor old Bill†). While David pockets $9,636. 62 ($48,183 @ 20%) by purchasing substandard polyester fillings for the bear, Bill looses $2K due to additional filler required for production of a quality bear. There is no reasoning on how Rita sets the price for the Internet bear. Rita set a low price on the bear causing an unfavorable mix variance and there is no reasoning on how she established the budgets; overall she is favored by both moves, hurting the company’s profits. OvertimeThis is due to the inefficient use of labor, adding to the low morale of the employees. The unit labor requirement went from 1. 2 to 1. 7 due to the poor quality of raw material. The pay rate went up 17 cents due to new hires that had to be enticed to work at BTC. All these problems can be associated with the order base production scheduling, causing a â€Å"knew jerk reaction† in the system every time a new order is received, forcing employees to work overtime (See Exhibit 8 for more d etails). The case makes it clear that there have been no technology improvements in the past five years at BTC.Fixed manufacturing overhead is favorable due to the higher volume of items sold, but it does not reflect on the performance of the firm, since this is due to the low Internet price. I assume that most of this expense is to cover the radio campaign and the Internet cost, increasing volume with no concerns on the effect on Production 5 I blame this on Rita for selling products at less than reasonable price, only looking after her compensation. She increased volume with no concerns on the effect this might have on production. 4 RecommendationsProduction Bill should consider going to a forecasted production cycle, allowing a better distribution of the work load over the year (reducing overtime from 9. 11 to 8. 47), allowing time to mentor new employees (as attrition rate would be hire), allowing for scheduled maintenance without worrying about capacity during peak production t imes, and dedicate more time to the cleaning of the machinery (there is a substantial drop in cleaning material cost, in this industry this can be associated with a higher maintenance expense, see Exhibit 2b).The quality management effort should be integrated to supports the overall strategy of maintaining a high quality product at BTC. The integration of marketing and production could yield better production schedules to be developed; this integration can be accomplished by establishing shared goals between the two departments. With better production schedules BTC could identify bottlenecks and make sure that those are never starved for work6, reducing overtime demands during peak demand cycles.Overtime Premiums have been rising at an alarming rate (1619% in 1998, 1055% in 1997, see Exhibit 2b); this has very bad consequences on the company’s bottom line7. Production planning should increasing employee morale, allow for proper maintenance of equipment and reduce the risk of breakage during peak production times, and allow for planned training of new employees. In order to offer a higher quality product and impact the reduction of overtime, Bill has to consider upgrading some of the outdated equipment, especially replacing the equipment that reduces overtime and maintenance cost.The company is operating near to capacity; new equipment should alleviate the production bottlenecks and provide the foundation to reduce the overtime labor cost. If Bill is not familiar with new technologies in this industry, he should seek support from consultants in this area. Incentive Plan The incentive model should encourage accurate reporting by encouraging the right behavior, thus discouraging â€Å"low or high balling† while developing budgets (see Exhibit 3). David should be rewarded for finding the least expensive input material, without compromise of quality.Samples of material to be 6 Technology could also be deployed to reduce the bottlenecks, especially the labor-intensive bottlenecks. purchased should be analyzed by Production prior to committing to the shipment and purchase. This can only be accomplished if purchases are based on forecasted production, also allowing David to have more time for the negotiation of better prices for quality raw materials. Rita should continue to be rewarded for selling products, and growing markets. Instead of basing Rita’s bonus on the Static budget, her bonus should be evaluated against the Flexible Budget.In general static budgets are departmental goals that jointly represent corporate goals. Flexible Budgets incorporate some of the present variations in prices, markets, production, costs, etc. that tend to invalidate the Static Budget over time. The incentive plan for BTC should have a mix of departmental goals and division goals, so that there is a better integration among the different departmental goals. Bonuses should reflect management’s favorable performance; therefore, managers should have adequate control over those drivers that affect BTC’s outcomes.BTC should design a Balanced Scorecard as an integrative effort to support efforts of the individual managers of the different department in an orchestrated effort. Balanced Scorecard BTC’s Balance Scorecards should be aligned to support the corporate strategy, both short and long term. Incentives should be assigned to the degree the different measures contribute to the corporate goals. Managers shall respond to incentive, thus supporting corporate goals (see Exhibit 9 for details).A Balanced Scorecard typically includes measures in each of four areas: Financial, Customer, Internal Business Processes, and Learning and Growth8. Some organizations add other dimension to support their strategy, or replace one of the four perspectives with one that uniquely reflects their mission and strategy. In the case of BTC the identified areas are: Corporate (BTC), Marketing, Purchasing, Production, and Manag ement9. The proposed set of Balanced Scorecards for BTC is presented in Exhibit 10. It sounds like the previous manager was a former student of Dr.Page, since the â€Å"two envelop† strategy was employed. First envelope: Blame the predecessor, write loss off. Second envelope: Prepare two envelopes. This case is common in situations with companies that pay bonuses. That's why companies are moving into options. 8 The Balanced Scorecard, Robert S. Kaplan and David P. Norton, Harvard Business School Press, 1996 9 Management as part of the Balanced Scorecards tends to be forgotten. Management (upper) has a responsibility to support the different departments with information on quality, cycle time, and cost. 7 Exhibit 1Berkshire Toy Company A Division of Quality Products Corporation Preliminary Statement of Divisional Operating Income for the Year Ended June 30, 1998 Units Sold Retail and Catalog Internet Wholesale Total Revenue Variable production costs Direct Material Acrylic pil e fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Total Direct Material Direct Labor Variable Overhead Total Variable Production Cost Variable Selling Expense Contribution Margin Fixed Costs Manufacturing Overhead Selling Expenses Admin Expenses Total fixed Costs Operating Income Actual Units 325,556 $ 8,573,285 174,965 $ 4,428,018 105,429 $ 1,445,184 45,162 $ 14,446,487 Master (Static) Budget 280,000 $ 11,662,000 $ $ 1,344,000 $ 13,006,000 Master Budget Variance 45,556 $ (3,088,715) $ 4,428,018 $ 101,184 $ 1,440,487 Unfavorable Favorable Favorable Favorable $ $ $ $ $ $ $ $ $ $ $ $ $ 256,422 125,637 246,002 450,856 16,422 69,488 66,013 1,230,840 3,668,305 1,725,665 6,624,810 1,859,594 5,962,083 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 233,324 106,400 196,000 365,400 14,000 67,200 33,600 1,015,924 2,688,000 1,046,304 4,750,228 1,218,280 7,037,492 661,920 4,463,000 1,124,000 6,248,920 788,572 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3, 098 19,237 50,002 85,456 2,422 2,288 32,413 214,916 980,305 679,361 1,874,582 641,314 (1,075,409) (3,023) 560,192 (261) 556,908 (1,632,317) Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Unfavorable Favorable Unfavorable Favorable Unfavorable $ 658,897 $ 5,023,192 $ 1,123,739 $ 6,805,828 $ (843,745) Unfavorable Exhibit 2a Company Growth based on Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 Units Produced 350,000 300,000 250,000 200,000 150,000 100,000 50,000 – Units 1994 1995 1996 1997 1998 Year Exhibit 2b Variable Cost Associated with BTC growthBerkshire Toy Company A Division of Quality Products Corporation Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 1998 1997 1996 1995 1994 325,556 271,971 252,114 227,546 201,763 Units Produced Variable Overhead Payroll Taxes and fringes Overtime Premiums Cleaning Supplies Maintenance Labor Maintenance Suppliers Miscellaneous Total $ 840,963 $ 423,970 $ 4,993 $ 415,224 $ 27,373 $ 13,142 $ 1,725,665 $ 524,846 $ 24,665 $ 6,842 $ 256,883 $ 15,944 $ 11,244 $ 840,424 $ 467,967 $ 2,136 $ 6,119 $ 232,798 $ 12,851 $ 9,921 $ 731,792 $ 413,937 $ 1,874 $ 5,485 $ 244,037 $ 15,917 $ 8,906 $ 690,156 $ 356,150 $ 1,965 $ 4,996 $ 216,142 $ 14,323 $ 7,794 $ 601,370The following table shows the increases in variable cost associated with the production growth. Variable Overhead Growth Payroll Taxes and fringes Overtime Premiums Cleaning Supplies Maintenance Labor Maintenance Suppliers Miscellaneous Units Produced 1998 1997 1996 1995 60% 12% 13% 16% 1619% 1055% 14% -5% -27% 12% 12% 10% 62% 10% -5% 13% 72% 24% -19% 11% 17% 13% 11% 14% 20% 8% 11% 13% Increases in Variable Cost Associated with the Production Growth 1800% 1600% 1400% 1200% 1000% Percent 800% 600% 400% 200% 0% 1994 -200% 1995 1996 Year 1997 1998 1999 Payroll Taxes and fring es Maintenance Suppliers Overtime Premiums Miscellaneous Cleaning Supplies Units Produced Maintenance LaborExhibit 2c Fixed Cost Associated with BTC growth Berkshire Toy Company A Division of Quality Products Corporation Schedule of Actual Manufacturing Overhead Expenditures for years Ended June 30, 1994 — 1998 Fixed Overhead Utilities Depreciation—machinery Depreciation—building Insurance Property Taxes Supervisory salaries Total 1998 $ 121,417 $ 28,500 $ 88,750 $ 62,976 $ 70,101 $ 287,153 $ 658,897 1997 $ 119,786 $ 28,500 $ 88,750 $ 61,716 $ 70,101 $ 274,538 $ 643,391 1996 $ 117,243 $ 28,500 $ 88,750 $ 57,211 $ 68,243 $ 275,198 $ 635,145 1995 $ 116,554 $ 28,500 $ 88,750 $ 55,544 $ 68,243 $ 269,018 $ 626,609 1994 $ 113,229 $ 28,500 $ 88,750 $ 54,988 $ 66,114 $ 254,469 $ 606,050The following table shows the increases in fixed cost associated with the production growth. Fixed Overhead Growth Utilities Depreciation–machinery Depreciation–building Ins urance Property Taxes Supervisory salaries Units Produced 1998 1% 0% 0% 2% 0% 5% 20% 1997 2% 0% 0% 8% 3% 0% 8% 1996 1% 0% 0% 3% 0% 2% 11% 1995 3% 0% 0% 1% 3% 6% 13% Increases in Fixed Cost Associated with the Production Growth 25% 20% 15% Percent 10% 5% 0% 1994 -5% 1995 1996 1997 1998 1999 Year Utilities Property Taxes Depreciation–machinery Supervisory salaries Depreciation–building Units Produced Insurance Exhibit 3 Incentive Model for Accurate Reporting10 ?b1* forecast + b2 * (actual – forecast) if actual ? forecast Incentive = ? b1* forecast – b3 * (forecast – actual) if actual < forecast b1: rewards are positively related to forecasted sales, give managers and incentive to forecast high b2: sales should be higher than the forecast, b2 affect this component b3: when actual sales are less than the forecast, this plan penalizes the manager For example: b1 b2 b3 5% 3% 7% Actual Sales Forecasted Sales Incentive 1000 1000 50 1100 1000 53 1200 1000 5 6 1000 1100 48 1100 1100 55 1200 1100 58 1000 1200 46 1100 1200 53 1200 1200 60 10 Example from: Managerial Accounting an Introduction to Concepts, Methods, and Uses by Maher Stickney & Weil. Exhibit 4 Total Variable Cost Variance Contributions Variance Cost Contribution Acrylic pile fabric 1% 10-mm acrylic eyes 1% 45-mm plastic joints 2% Polyester fiber filling 3% Woven label 0% Designer box 0% Accessories 1% Direct Labor 39% Variable Overhead 27% Variable Selling Expense 25% Total Variable Cost Variance Contributions Acrylic pile fabric 45-mm plastic joints Woven label Accessories Variable Overhead 10-mm acrylic eyes Polyester fiber filling Designer box Direct Labor Variable Selling Expense Exhibit 5 Analysis of SalesFlexible Flexible Budget Budget (Budgeted Units Sales Volume Mix)(5) Variance $1,897,427 $$218,656 $2,116,083 $13,559,427 276723 $0 $1,562,656 48833 $15,122,083 325556. 1464 Actual Retail and Catalog Internet Wholesale Units Price Master (Static) Budget $11,662,000 $$ 1,344,000 $13,006,000 Budgeted Budgeted Mix in Total Sales Sales Mix Mix PercentagesBudgeted Price Variance Variance 238000 0 42000 280000 85% 0% 15% 100% $49. 00 $42. 00 $32. 00 $46. 45 $(3,088,715) $(4,986,142) $4,428,018 $4,428,018 $ 101,184 $(117,472) $1,440,487 $(675,596) $8,573,285 174,965 $49. 00 $4,428,018 105,429 $42. 00 $1,445,184 45,162 $32. 00 $44. 37 Total Revenue $14,446,487 325556 Exhibit 6a Schedule of Standard Costs: Fifteen-Inch Berkshire Bear Table 2 Standard 280,000 UnitsQuantity Allowed per Unit Direct Material Acrylic pile fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Direct Material per unit Total Direct Material Direct Labor Sewing Stuffing and cutting Assembly Dressing and Packaging Total direct labor 0. 02381 2 5 0. 9 1 1 Input Price $ $ $ $ $ $ 35. 00 0. 19 0. 14 1. 45 0. 05 0. 24 Standard Cost Per Unit $ $ $ $ $ $ $ $ $ 0. 83335 0. 38000 0. 70000 1. 30500 0. 05000 0. 24000 0. 12000 3. 62835 1,0 15,938 0. 50 0. 30 0. 30 0. 10 1. 20 $ 8 $ 9. 60 Variable manufacturing overhead 1. 2 $ 3. 114 $ 3. 7368 Fixed manufacturing overhead 1. 2 $ 1. 970 $ 2. 3640 Exhibit 6b Schedule of Actual Manufacturing Costs for year Ended June 30, 1998 Table 3 Actual 325,556 UnitsQuantity Allowed per Unit Direct Material Acrylic pile fabric 10-mm acrylic eyes 45-mm plastic joints Polyester fiber filling Woven label Designer box Accessories Total Direct Material Direct Material per unit Direct Labor Sewing Stuffing and cutting Assembly Dressing and Packaging Total direct labor Overtime Premium Other Variable Manufacturing Overhead Fixed manufacturing overhead 7,910 661,248 1,937,023 344,165 328,447 315,854 Input Price $ $ $ $ $ $ 32. 4174 0. 1900 0. 1270 1. 3100 0. 0500 0. 2200 Total Cost $ 256,422 $ 125,637 $ 246,002 $ 450,856 $ 16,422 $ 69,488 $ 66,013 $ 1,230,840 $ 3. 780732 189,211 104,117 121,054 34,615 448,997 103,787 $ $ 8. 1700 4. 0850 $ 3,668,305 $ 423,970 $ 1,301,695 $ 658,897 $ 7,283,707 Exhibit 6c Analysis of CostStatic Budget Direct Material per unit Direct Material per unit Units Total Materials Labor Cost per Unit Total direct labor per unit Labor Hours Hourly Rate Total Labor Cost Variable Manufacturing Overhead Variable Overhead Cost per Hour Labor Hours Variable Manufacturing Overhead Variable Selling Expenses Cost per Unit Units Total Variable Selling Expenses Fixed Manufacturing Overhead Cost per hour of labor Total hours Fixed Manufacturing Overhead $ $ 1. 97000 336,000 661,920 $ $ 1. 46749 448,997 658,897 $ (225,627) $ (222,604) $ (448,231) Price Total $ $ 1. 97 390,667. 20 769,614. 38 $ 225,627 $ (114,910) Volume $ $ $ 4. 35100 280,000 1,218,280 $ $ 5. 71206 325,556 1,859,594 $ (443,100) $ (198,214) $ (641,314) Price Total $ 4. 35 325,556. 00 $ (443,100) $ Volume $ $ $ 3. 11 336,000 1,046,304 $ $ 3. 84 448,997 1,725,665 $ (327,488) $ (351,873) $ (679,361) Price Total $ 3. 11 390,667. 20 $ (327,488) $ (181,639) Volume $ $ $ $ 1. 20000 336,000. 00 8. 00000 2,688,000 $ $ 1. 6980 448,997. 00 8. 17000 4,092,275 $ (980,305) Total $ (76,329) $ (903,976) Price $ $ 1. 20 390,667. 0 8. 00 $ (76,329) $ (466,638) Volume $ $ $ 3. 62835 280,000. 00 1,015,938 $ $ 3. 78073 325,556. 00 1,230,840 (49,625) (165,291) $ (214,916) Price Total $ 3. 63 325,556. 00 $ (49,609) $ Volume $ Actual Variance Type Flexible Budget Price Efficiency Variance Volume Variance $ 1,181,231. 11 $ 3,125,337. 60 $ 1,216,537. 66 $ 1,416,494. 16 Flexible Budget Total Cost per Unit Total Cost Variance Price Variance Volume Variance (670,915. 33) (1,841,957. 90) $ 14. 26335 $ 16. 50162 $ 14. 26335 Flexible Budget Variance $ (1,434,086) Total Price Efficiency Variance $ (670,899. 27) Total Volume Variance $ (763,187. 10) Static Budget Variance $ (2,512,873. 3287) Fixed Costs Actual Static Variance Total Cost Variance Selling Expenses $ $ $ $ 5,023,192 4,463,000 (560,192) (3,072,804) Administrative Expenses $ $ $ 1,123,739 1,124,000 261 TOTAL Budget Cost Variance Budget Sales Va riance Budget Variance Total Cost Variance Flexible $ (1,994,017) $ (675,589) $ (2,669,607) Static $ (3,072,804) $ 1,440,487 $ (1,632,317) $2,669,607 1,632,317 $1,037,290 Variances Volume Variance $ (903,976) $ (466,638) Labor Variance $ (437,338) Labors Hours Exhibit 7 Incentive Plan (better named: â€Å"Let’s all gang against poor old Bill†11) David Hall (Purchasing) Quantity Actual Price Static Budgeted Price Acrylic fabric 7910 $ 32. 42 $ 35. 00 10-mm acrylic eyes 661248 $ 0. 19 $ 0. 19 45-mm plastic joints 1937023 $ 0. 13 $ 0. 14 Polyester fiber filling 344165 $ 1. 31 $ 1. 5 Woven label 328447 $ 0. 05 $ 0. 05 Designer box 315854 $ 0. 22 $ 0. 24 Accessories 325556 $ 0. 20 $ 0. 12 Bonus $ 14,632. 71 20% Rita Smith (Marketing) Revenues Variable Selling Expenses Fixed Selling Expenses Net Revenues Bonus Actual Master Budget $14,446,487. 00 $13,006,000. 00 $ (1,859,594. 00) $ (1,218,280. 00) $ (5,023,192. 00) $ (4,463,000. 00) Delta $ 7,563,701. 00 $ 7,324,720. 00 $ 23 8,981. 00 10% $23,898. 1 Purchasing Variance $ 20,428. 37 $ $ 25,181. 30 $ 48,183. 10 $ $ 6,317. 08 $ (26,946. 28) $ 73,163. 57 Bill Wilford (Manufacturing) Price Variance Volume Variance Static Budget Variance $ (670,915. 33) $ (1,841,957. 90) $(2,512,873. 3) NO BONUS Since negative Static Budget Variance 11 Production processes input into output. Both, the input responsible manager and the output responsible manager, make good money $73K and $24K in 1998, while the production manager makes no money. This situation is ill-fated, or just plain dumb. The â€Å"sandwich effect†, the manager in the middles gets squeezed. This is the sarcasm in management that I am illustrating with this title. Exhibit 8 Overtime Hours 448,997. 00 Direct Overtime 103,787. 00 448,997. 00 Actual Pay Rate Total Hours $ 8. 17 $3,668,305. 49 390,667. 20 $ 4. 09 $ 423,969. 90 45,457. 20 $ 9. 11 $4,092,275. 39 390,667. 20 Flexible Pay Rate Total $ 8. 0 $3,125,337. 60 $ 4. 00 $ 181,828. 80 $ 8. 47 $3,307 ,166. 40 Exhibit 9 Balanced Scorecard12 The actions of management are not static but, rather, are dynamic over time. A round of Strategic performance improvement (usually every year at the time budgets are being developed) may result in an increase in the goals that have been established by the manager and their Balance Scorecard supervisor. (see Figure 1) An analogy may be useful at this point (see Figure 2): just as in high jumping, the goal (bar) is not set at the point at which it will eventually end. It is Performance Measure in set lower, and as the jumping progresses, it is steadily moved higher.As the jumper Management trying to meet Performance clears it at lower heights, the bar is moved up. Each time the assessment (depicted by the black line in the graph) approaches or exceeds the goal (depicted by the gray line), the Figure 1. Balanced Scorecard in action 100 95 90 Performance Metric 85 80 75 70 65 60 55 50 2000 goal is increased until performance is at a level at which further improvements may not be desired. The management group of a corporation will develop plans for the year, those plans are revised through time, incentives are allocated and measures are taken to draw new plans for future years. The Balance Score card allows managers to keep their Goal core and their measures clear, so that decisions are made towards a goal that is congruent with the corporate goal. Outcome measures are results. Driving measures are Assessment incremental in nature, such as the ones depicted in Figure 2. 2004 Year 2005 2006 2007 2008 2001 2002 2003 Figure 2 Progressive Goal Setting 12 Graphs were extracted from Leadership Model based on Performance Measures and Continuous Improvement by Andres A. Calderon Exhibit 10 Balanced Scorecard for BTC Group BTC Scorecard Customer Satisfaction Measures Number of Complaints and number of unsolicited letters Employee satisfaction (involvement, recognition, access to information, support from staff functions, etc. , Staff turnover, Productivity (revenue per employee, return on compensation, profit per employee, etc. ), Number of employees qualified for key jobs relative to anticipated requirement Outcome Performance Initiatives Driver BTC Employee Satisfaction Marketing Attain a high market share in the sale Percent of stuffed animal market share and cost to attain of quality stuffed animal toys a new customer Brand recognition by becoming the synonymous for Teddy Bears (â€Å"brain Percent of people that relate teddy bear to TCB share†) Reduction of selling expenses while increasing number of sales (Last Year Selling Expense – Current Year Selling Expense) / (Last Year Sale – Current Year Sale) Marketing Marketing Marketing Marketing MarketingIntroduction of successful new product Number of new motives or designs introduced per year, variations to the market Time to market, Break even time Introduction of better distribution channel Accurate product pricing based on market Marke t accessibility related to delivery cost Contribution Margin Growth and market understanding by polling customer perception of value for money Marketing Accurate forecasting of sales and Percentage off error related to inventory cost, Percent of peak seasons (to minimize stock-outs key items out of stock, Number of back-orders and inventory cost) Group Scorecard Reduce cost of raw material while maintaining Production quality standards Minimize raw material shortages, so that Production does not have to wait Minimize production cycle timeMeasures Number of times Production rejected raw material, raw material cost compared to price index Percent of key raw material out of stock, Number of backorders Production cycle time Outcome Performance Initiatives Driver Purchasing Purchasing Production Production Production Minimal percentage of manufacturing Service failure index, return rate, warranty claims, number defects of defects Timeliness Percent on-time delivery, total time for custom er interaction (e. g. time of Internet session), average waiting time (e. g. to receive a teddy bear), satisfaction with delivery time Number of processes having adequate information on quality, cycle time, and cost New revenue or savings per database, report, etc. Management Information coverage ratio Management Return on Data