Other Personality Traits That Affect Managerial Behaviour Sociology Essay

Other Personality Traits That Affect Managerial Behaviour Sociology Essay Leadership is the action of leading a group of people or an organization, or the ability to do this Oxford Dictionary. A person exerts influence over other people, which inspires, motivates and directs their activities to help achieve common performance goals (Yukl, 1989 as cited in George Jones, 2006). The person who exerts such influence is a leader. With the influence they exert, effective leaders help groups and organisations to achieve a goal. Effective leadership also increases an organisations ability to meet all the contemporary challenges such as obtain a competitive advantage, the need to promote acceptable ethical behaviour and is essential to manage a diverse workforce fairly and impartially. As a result, this will raise the organisations chances of success (George Jones, 2006). Nowadays due to the exceptionally challenging era, leadership can be very demanding because of the pace of change, the illusion of control and the high expectations of followers (Arnold Rendall, 2010).A leader can adopt his own personal qualities, behaviours styles and decisions to develop his own leadership style (Arnold Rendall, 2010). Early leader-focused approaches to leadership have 2 main features: a description of the leader in terms of their characteristics and/or behaviour and the investigation and analysis and of the characteristics and or behaviours of what makes a good leaders regardless of what they lead (Arnold Rendall, 2010). Early leadership was more focused on finding the best characteristics that makes a person a leader or effective leader. Early work such as the work of House and Baetz (1979) came up with what characteristics that leaders tend to have at a higher degree than non-leaders. These characteristics include intelligence, dominance/need for power, self-confidence and knowledge of the task. (House Baetz , 1979). Bass (1990) also included other personality traits such as good adjustment, emotional balance and high integrity which were found to be common traits amongst leaders. (Bass, 1990) This early research did yield some interesting results but researchers did not find a constant profile of characteristics which are common to all leaders however personality and intelligence seem to be fundamental for persons to emerge as leaders and ultimately be effective leaders (Arnold Rendall, 2010). The Big Five Personality Traits People have certain characteristics which are constant to them throughout their life which can influence how they think, feel and behave both on and off the job (George Jones, 2006). These characteristic are called personality traits. These traits make you act, feel and think in certain ways which makes every individual unique. It is very important that these traits are understood since every persons personality influences their behaviour and their approach to managing people and resources (George Jones, 2006). An individuals personality is composed of five general traits or characteristics, these being extraversion, negative affectivity, agreeableness, conscientiousness and openness to experience (Digman, 1990). Each personality trait is viewed as a continuum along which every individual falls. A person can fall on the high end part or on the low end part or else somewhere in between. A persons approach to management can be described in how people are like at the high and low ends of each continuum which is an easy way to understand how these trait affect a persons approach (George Jones, 2006). The effectiveness of each trait is determined by a complex interaction between the nature of the job or organisation in which they are working and the characteristics of the person. Furthermore, some personality traits might be effective in one situation but can decrease the effectiveness in another situation. (George Jones, 2006) There are other personality traits in addition to the big five that describe peoples personalities. These are specifically important for understanding managerial effectiveness. Some examples are self-esteem, locus of control and need for achievement. Research by Fred E. Fiedler acknowledged that effective leadership depends on the characteristics of the leader and of the situation. Fiedler came up with the Contingency theory of leadership. He explains why a manager or leader may be capable in one situation and incapable in another. It also suggests which kinds of managers or leaders are more effective in different situations (George Jones, 2006). He argued that leaders have rather stable personal characteristic, leading to a characteristic behavioural style. In his theory, Fiedler assumed that how much a leader is person-oriented depends on the leaders perception of their least preferred co-worker. He concluded that task-oriented leaders are best in very favourable and unfavourable situations and those person-oriented leaders are best in moderately favourable or moderately unfavourable situations (Arnold Rendall, 2010). Desired and acceptable leadership characteristics may vary across organisational context. Sociability, need for power and need for achievement are considerably relevant characteristics which are consistent across different organisations and organisational cultures. (House Baetz , 1979). House and Baetz (1979) came up with two insights which are generally accepted by persons studying leadership: if certain characteristics are to have an impact on others and their performance, these personal characteristics need to be observable in the leader and that leader characteristics and behaviours depend on the different type of task (House Baetz , 1979). Recent studies have pointed out the effects of personal and situational factors on the development of an individual as a leader. Amongst these personal factors are personality traits and gender (Jacobowitz Pratch, 1996).One of the most distinct and difficult to change characteristics is gender. Leadership roles are typically described in stereotypically masculine terms. This could mean that women have a slight disadvantage over men in being selected for leadership roles and when selected it is difficult for them to be seen as good leaders. Leadership roles are typically predominated by men but in recent years women in leadership positions have increased considerably (Corrigall, Konrad, Lieb, Ritchie JR, 2000). This has prompted a lot of researchers to explore the relationship between gender and leadership. While the number of women in management positions has increased, there are still very few women who hold high level executive positions (Corrigall, Konrad, Lieb, Ritchie JR, 2000). It is believed that women tend to prefer jobs who offer a reward rather than high pay and advancement, which might be the explanation of their failure to attain more jobs at the top level positions (George Jones, 2006). The styles of male and female leaders may influenced by the gender-based expectations. Individuals establish certain expectations for their own and others behaviour which is based on their own beliefs about what the appropriate behaviour of male and females should be like. (Eagly, 1987) Women are stereotypically described as nurturing, supportive and concerned with interpersonal relations whilst men are viewed as being directive and focused on task accomplishment (George Jones, 2006) These stereotypes suggest that women can be more relationship oriented as managers and are more considerable in their behaviour. Men are seen as more directed towards task-orientation and engage in more initiating-structure behaviours (George Jones, 2006). People have become accustomed to the styles that men have since men have long held these roles. As a result, there is more focus on women in the discussion of the impact of gender on leadership (Eagly Johannesen-Schmidt, 2001). There is little agreement about how women actually lead even though there is this greater focus on women in research. Feminists writings have given great importance to differences and similarities between leadership styles in males and females. (Eagly Johannesen-Schmidt, 2001). A number of researchers state that there is a difference between women and men having a leadership position, whilst others say that there is no difference. Eagly and Johnson (1990) state that male and female managers having a leadership position, tend to behave in similar ways. Men do not engage in more initiating structure than women and women do not engage in more consideration than men (Eagly Johnson, 1990). Writers of trade books, have argued that thre is a difference in leadership behaviour between males and females. They tend to see women as being less hierarchical, more cooperative and ollaborative and more oriented to enhancing others self worth (Book, 2000). On the contrary, social scientists say that there is no or minimal difference iin female and male organizational leaders. (Eagly Johannesen-Schmidt, 2001). Job Attribute Preference Research has show that job attribute preference may direct a male or female manager to a different set of jobs, career paths and emplyers due to the existence of sex difference (Beutell Brenner, 1986). Job attributes have been divided into two categories: intrinsic and extrinsic factors. Job aspects that fulfil material or social needs are termed intrinsic factors and job aspects that fullfil higher needs such as growth, esteem and self expression are termed intrinsic factors. (Pinder, 1998) Research on sex differences and similarities in job attribute preferences has been enriched by two distinct theoretical persecpetives: the gender ideology perspective and the structuralist persepective. Different personality characteristics and different sets of ativities for women and man are dictated by gendered societal norms in existence is the view of the gender ideology perspective. The structuralist perspectives argues that women have poorer quality jobs than men on average because of the segregation and discrimination in the labor market. (Corrigall, Konrad, Lieb, Ritchie JR, 2000). Both of the perspectives conclude that job attribute preferences for men and women are different by they assign casualty to different underlying mecchanisms. They both predict that there will be a change in the pattern of sex differnces in job attribute preferences over time, however they conclude that the patterns of change will be somewhat different. Gender Ideology Gender ideology may be described as socially-constructed script that prescribes different characteristics, values, attitudes, behaviors and activities for women and men (West Zimmerman , 1991)Gender ideology is composed of gender roles and gender stereotypes. Gender roles are sets of norms presribing the behaiors and activities appropriate for each sex (Best Williams, 1990). Gender roles differ by cultures but in Western industrialised societies attribute the role of income provider for the family to the men and the role of homemaker to the women. Gender stereotypes are different personality characateristics which are expected from men and women. Characterisitcs such as nurturing, affiliation and passivity were associated with the females whilst characteristics such as autonomy, aggression, dominance and achievement were ascribed more to males (Best Williams, 1990).People tend to conform to gender expectations to avoid the disapproval from others. If peoples choice ofwork would reflect gender ideology, then men should consider responsibility, autonomy earnings, advancement, prestige, recognition and challenge to be more important than women do. Whilst women should value more job security, good coworkers, a good supervisor, physical work environment, helping others, growth/development opportunities, opportunities to use ones abillities, variety, task significance a feeling of accomplishment and good hours to be more important than men do. In this study conducted by Corrigall, Konrad, Lieb and Ritchie, it was found that men attached more importance to earnings and responsibility than women did. This reflects the idea that men take on the role of provider and that they need to demonstrate success and status reflecting the ideas of gender roles and stereotypes towards men. On the other hand women attached greater importance to all mentioned attributes which show that women take the role of homemaker and to demonstarte nuturing and expressiveness. The findings relate to the gender roles typically attributed to women. (Corrigall, Konrad, Lieb, Ritchie JR, 2000) Leadership styles of males and females The styles of males and females can be described in terms of the stereotypes of masculinity and femminity. Studies of peoples stereotypes about men and women show that the popular beliefs about male and female behaviour can be compiled, following Bakan (1966), in terms of two dimensions, the agentic and the communal attributes. (Jacobowitz Pratch, 1996) Agentic characteristics define primarily an assertive, controlling and confident tendency. These characteristics are typically ascribed to more strongly to men than to women. Agentic behaviours, in employment settings might include speaking assertively, competing for attention, influencing others, initiating activity directed to assigned taks and making problem-focused suggestions (Eagly Johannesen-Schmidt, 2001). Women are more ascribed to communal characteristics. This is because communal characteristics describe primarily a concern with the welfare of other people. Examples of communal characteristics in employment settings are speaking tentatively, not drawing attention to oneself, accepting others direction, supporting others and contributing to the solution of relational and interpersonal problems (Eagly Johannesen-Schmidt, 2001). Leader roles and gender roles Female leaders can adopt leadership styles that differe from those of men because they need to accommodate their behaviour to the occasioanlly conflicting demands of the female gender role and their role as a leader. There are different implications for the behaviour of male and female leaders due to gender roles. This is not only because male and female roles have different content but there is a discrepancy perceivers associate with women as having communal qualties and successful leaders are perceived as having agentic qualities. Since agentic properties are more associated to men, people tend to believe that men are better at being leaders than females. (Eagly Johannesen-Schmidt, 2001) Eagly and Karau(2001) argued that apparent difference between the typical leader roles and the female gender tends to ccreate prejudice towards female leaders. It takes two forms: (a)less favorable evaluation of womens (than mens) potential leadership because leadership ability is more stereotypic of men than women and (b)less favorable evaluation of the actual leadership behavior of women than men because agentic behaviour is perceived as less desirable in women than men. In the first prejudice, womens characteristics and the resulting female-stereotypic qualities are different from what is expected and desired in leaders. This is a result from the descriptive norms of gender roles. The second prejudice arises from prescriptive norms of gender roles namely the beliefs of how women ough to behave. Women leaders can be negatively assessed for fullfilling the agentic requirements of leader roles and thus failing to comply with the communal characteristics, even though they may be praised for their fulfillment of the leader role. (Eagly Karau, 2001) On the other hand, Sherpe (2000) states that after years of analyzing what makes leaders more effective, management gurus now know how to maximise the chances of getting a great executive. Their answer is to hire a women. The idea was first introduce by the writers feminist trade books on management and is now making tis way into the popular culture. (Carli Eagly, 2003) However in Malta, women have the highest rate of female inactivity 65.2% compared to other E.U. countries 35.7%. (Spiteri, 2012). Nevertheless, there was an increase in the rate of employement for woman which now stands at 62%,which has gone up from 55% in 1997 (Almunia, Andor, Barnier , Reding, Rehn, Tajani, 2012). Many women continue to face a glass ceiling, holding them backe in achieving a higher level in their work place. Men dominate company boards: 86.3% of board members and 96.8% of the boardroom chairs, whilst women make up 13.7% and 3.2% respectively. (Almunia, Andor, Barnier , Reding, Rehn, Tajani, 2012). Women in Malta represent only 3% of board members which is well below the EU average of 13.7% (Spiteri, 2012). On the other hand, there is a higher pecentage (22.7%) of Maltese women who are achieving higher levels of tertiary education than men(14.6%), even though when compared to other E.U. countries it is still very low (37.2% women and 30% men) (Spiteri, 2012). The National Statistics Office in collaboration with the National Council of women in Malta carried out a survey on the Perceived Obstacles to the participation of women in Decision-making Positions (2007). The rsult of this survey states that many women in malta are not advancing in their work to obtain top post because of 3 main difficulties: difficulties in reconciling long hours of work and family responsabilities, very little use of childcare facilities and lack of spouse/partner suport (National Statistics Office, 2007). Maltese Governments have always put measures in place to promote gender equality through various legislations and regulations. The constitution of Malta guarantees equaltiy between women and men. It gives protection against discrimination on various grounds including sex. Additionally, there is Article 45(11) swhich provides for special measures aimed at accelerating de facto equality between males and females (Spiteri, 2012). In 1991 Malta also approved the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW). Even though these measures have been in place for a few years now, there is still a general idea that men are seen as being more siutable at having a decision-making job. There are also a number of structural and cultural barriers which are preventing Maltese women from achieving further in their job. Such barriers include jobs without opportunities of promotion or training, practices that favour men for promotions, lack of employment laws and lack of sharing of household/childcare responsibilities by fathers. There is also a considerably big barrier being the attitudes and perceptions towards gendered roles in Malta. (Spiteri, 2012). In this study, I am going to focus on the perceptions that University students have towards leaders. Whether they tend to prefer male or female leaders and on what is their decision based on. Also, I am going to study what University Students think about the effectiveness of males and females in different work settings and what is the reasoning behind the idea.

Dante’s Inferno - The Evolving Relationship between Dante the Pilgrim a

Dante’s Inferno -   The Evolving Relationship between Dante the Pilgrim and Virgil the Guide       In Dante’s Inferno, the relationship between Dante the Pilgrim and Virgil the Guide is an ever-evolving one. By analyzing the transformation of this relationship as the two sojourn through the circles of hell, one is able to learn more about the mindset of Dante the Poet.   At the outset, Dante is clearly subservient to Virgil, whom he holds in high esteem for his literary genius. However, as the work progresses, Virgil facilitates Dante’s spiritual enlightenment, so that by the end, Dante has ascended to Virgil’s spiritual level and has in many respects surpassed him. In Dante’s journey with respect to Virgil, one can see man’s spiritual journey towards understanding God. While God loves man regardless of his faults, His greatest desire is to see man attain greater spirituality, in that man, already created in God’s image, may truly become divine, and in doing so, attain eternality. When we are first introduced to Dante the Pilgrim, we perceive in him a Renaissance intellectual, who despite his intelligence and religiosity has lost the â€Å"path that does not stray† (I.3). Having thus lost touch with the tenets of orthodox Catholicism, a higher power has chosen for him to undertake an epic journey. (The devout are able to identify this power with the one Judeo-Christian God, while pagans and sinners often attribute the impetus behind the Pilgrim’s voyage to fate.)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Dante’s initial reaction to meeting Virgil reveals his penchant for the worldly as opposed to the divine. He addresses Virgil humbly, his words dripping with praise. â€Å"Are you then that Virgil, you the fountain/ that freely... ...an-Islamic notion of the heavenly father and his love for mankind are striking. God loves us and wants nothing more than that we be saved from Hell. However, when man transgresses, God has no choice but to punish him accordingly; while it pains Him to do so, He must as this is a component of His divine love. Works Cited Dante Alighieri, Inferno (trans.   Allen Mandelbaum), In The Norton Anthology of World Masterpieces. (New York: W.W. Norton, 1999) Works Consulted Bergin, Thomas Goddard. Dante. New York: Orion P, 1965. Niven, Larry and Pournelle, Jerry. Inferno. New York: Pocket Books,1976. MacAllister, Archibald T. Introduction. Inferno. By Dante. New York: Mentor, 1954. Pinsky, Robert. The Inferno of Dante. New York: Harper Collins, 1994. Spinrad, Norman. Introduction to Inferno, by Niven and Pournelle. Boston: Gregg Press, 1979.

Is america too dependent on technology? Essay

Are Americans too dependent on technology? Do you think Americans are too dependent on technology? Americans have become so reliant on technology in the 21st century that a vast majority of us probably wouldn’t know what to do if one day all the electronics just shut down. For example, I depended on this computer in order to write this paper, instead of just doing it the old fashioned way with a pencil and a piece of paper. Cell phones have become a â€Å"must have† in almost everyone’s life even the younger kids. I personally believe that we, Americans, are extremely too dependent on technology. Even though technology helps us in many ways it can also harm us as well. Despite the ease technology has given us â€Å"technology has caused people to become so reliant that, in a poll by CNET, 28 percent of people said they wouldn’t be able to live without high- speed Internet. The younger generation has lost its curious nature to explore to world. Instead, children are hiding behind a TV screen or Xbox game† (America). Many American children have awful social skills in todays time because they’re so stuck on their phones or computers. For example, my little brother is so stuck on his phone, ipad, or tv that when he has to talk to people in person he shuts down because he’s so used to just talking to people through his electronics. â€Å"Some experts believe excessive use of the Internet, cellphones and other technologies can cause us to become more impatient, impulsive, forgetful and even more narcissistic† (An Ugly). Another large problem technology has caused for us.

Lynda Smith “Disconnected” Rhetorical Summary Essay Essay Example

Lynda Smith â€Å"Disconnected† Rhetorical Summary Essay Essay Example Lynda Smith â€Å"Disconnected† Rhetorical Summary Essay Paper Lynda Smith â€Å"Disconnected† Rhetorical Summary Essay Paper In her essay. â€Å"Disconnected† . Lynda Smith apprehends that today’s technological forward motions are taking over our basic human interactions. She explains that we are being brainwashed into believing that cell phone. computing machines and other technological appliances help us to remain connected swimmingly and outright. Although the world is by utilizing these appliances we are non sing face to face communications. alternatively we are dividing from each other. Lynda Smith tries to link with readers emotions by indicating out misdirecting cell phone bearer commercials and mottos. Smith besides uses farther facts to back up her claims. that these companies have lied to us and succeeded by supplying false information by repeat. Which causal has the client believe these companies are trusty and client friendly. Even more she uses CIA’s informations base information to demo the figure of cell phone and cyberspace users to reason her theory on commercials act uponing our picks to buy these services. Furthermore. Smith connects with people who have been affected by advertisement and cell phone carries tremendous figure of cell phone users. Smith’s illustration portrays a work forces who was lead to believe. he would salvage clip by having a cell phone. while the truth is there is no salvaging clip. Large corporations are merely out to falsify our sense of clip so that we truly stop up with less. while still purchasing their merchandises. and leaping on the bandwagon. Smith ends her statements by saying we all have single pick to make up ones mind how we communicate with our close one time. Will it be by fast forwarding engineering. or face to confront interaction. either manner we need to maintain updated with engineering in order advancement forwards but we can non depend on it.

Study of Brand and Brand Valuation Methods The WritePass Journal

Study of Brand and Brand Valuation Methods Introduction Study of Brand and Brand Valuation Methods Introduction  Organisation Background  Rationale for the Chosen TopicStatement of the Problem in Valuing BrandsResearch QuestionsObjectives of the DissertationLiterature ReviewWhat Is A Brand?What is Goodwill?What is Brand Equity?The Development of Brand Valuation:Brand Valuation Methods   Research Methodology, Data Collection Methods and Data AnalysisDesk Research  ETHICAL CONSIDERATIONS:ReferencesManuchehr Shahrokhi, Professor of Finance, Department of Finance, Craig School of Business, California State University-Fresno, California, USABibliographyRelated Introduction A company’s brand image (Goodwill) or brand valuation plays a vital role in the modern business world. This has lead to the valuation of brands, which was quite unheard of in previous decades.   In this dissertation I attempt to analyse and understand various brand valuation methods, its merits and the way it’s represented using the different accounting policies and / or methods across the various accounting bodies worldwide.   The main objective of the dissertation is to understand various valuation model that will abide the various accounting bodies as well as satisfy the individual country’s rules and regulations. The roots of branding is evident in ancient civilisations and some study shows even before Birth of Christ and this   is evident from archaeological excavations in which we can find certain symbols or markings in pottery, coins and Arts. It was not until the 12th century trademarks were used to identify each manufacturer’s goods as well as measure their quality. In other words in the early times, brand names were not only used to distinguish between different goods which are similar but also distinguish their quality (Sudharshan, 1995). The value of a brand is indicated by how much money a company pays in order to acquire them. These may vary from brand to brand, however companies are prepared to pay a good price for top notch brands. For an example Procter and Gamble paid 2.6 times Richardson-Vicks’ book value, Nabisco sold for 3.2 times book value, and General Foods sold for 3.5 times book value (Business Week, 1995). This report will discuss the existing brand valuation methodologies and it’s significance in a company’s decision and require a sound marketing and financial view. Generally the marketing and financial approaches in this matter differ largely and today’s competitive market environment has made these two professions to work together in this regard. Brands are widely viewed as performance measures and important element decision making process. Many large corporate companies’ demands royalties from subsidiaries for using their brand name and this has made authorities such as tax and financial regulators to standardise the process of brand valuation. Brand valuation will be an important criterion to evaluate corporate performances in this century. Investors increasingly demand for greater disclosure of brand valuation and it’s the financial manager’s duty to ensure that such information’s are adequately provided with the investors. This has brought to adopt a standard brand valuation technique / method in company accounts.   Organisation Background This dissertation is not about a specific organisation brand valuation. It aims to cover many blue chip organisations accounting treatments in Brand Valuing. Mainly this study will involve understanding the accounting treatment of accounting bodies and accounting standards etc. The dominant model of branding in the twentieth century was the manufacturer as mega-advertiser. McKinsey (1994) believes that the traditional model of branding is no longer the only way, nor can it dominate in the future. According to Murphy (1990), brand is a complex phenomenon: â€Å"not only it is the actual product, but it is also the unique property of a specific owner and has been developed over time so as to embrace a set of values and attributes both tangible and intangible which meaningfully and appropriately differentiate products which are otherwise very similar.† These changes have prompted today’s business world to put a value into branding and thereby has the created the concept of Brand Equity or Goodwill of a company.   Rationale for the Chosen Topic In realisation of various valuation methods and different accounting bodies treat the Brand values in the Balance Sheet differently at large. This dissertation will answer â€Å"How companies calculate and disclose brand value in financial statements†. Weather researcher will able to identify and develop a proper Brand Valuation formula in this dissertation? Statement of the Problem in Valuing Brands Since the late 1980’s, it has become essential that a company recognises a brand as an intangible assent and as a result include them in their financial statements. The main reason for this was a wave of acquisitions that took place in that era that helped exposes the hidden value in highlys include, Nestlà © buying Rowntree, Danone purchasing Nabisco’s European business and Grand Metropolitan buying Pillsbury. However, accounting bodies throughout the world differ over how brand valuation should be done. The professional bodies have appeared uncertain as how to resolve the issue of brand valuation. It happens because of the lack of understanding and guidance over accounting treatment of brands. Much of the uncertainty associated with brands is regarding the relationship with goodwill and other intangible assets. There is real confusion about the distinction between brands and other assets such as goodwill or trademark. This difficulty leads to further problems when deciding how to measure and report them in financial statements. Research Questions In order to compile a report on Brand Valuation Methods I intent to find answers to the following research questions: What constitute Brand and Brand Equity? What are the problems in valuing a Brand? What are the available Brand Valuation methods? How does USA, UK and Indian Chartered Accounting Bodies value Brand? What is an acceptable and harmonized Brand Valuation model? Objectives of the Dissertation To understand the significance of Brands and how they have developed from time to time. To understand the Brand Equity Concept Different Valuation Methods in Valuing a Brand. To understand the Marketing and Finance perspectives of brand equity and how it will be presented and integrated, and their interrelationships in an Organisation. To analyse 4 financial accounts of large Blue Chip companies and their treatment as Intangible assets in the Accounts Literature Review What Is A Brand? â€Å"If this business were to be split up, I would be glad to take the brands, trademarks and goodwill and you could have all the bricks and mortar and I would   fare better than you†   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   (John Stuart, Former Chairman of Quaker Oats Ltd) This statement of John Stuart emphasise the importance of the brand. In other words a â€Å"name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competition† is categorised as a Brand. Furthermore, a Brand also helps to create awareness, reputation, prominence, and more in the marketplace. What is Goodwill? Goodwill in financial statements arises when a company is purchased for more than the fair value of the identifiable assets of the company. The difference between the purchase price and the sum of the fair value of the net assets is by definition the value of the goodwill of the purchased company. The acquiring company must recognize goodwill as an asset in its financial statements and present it as a separate line item on the balance sheet, according to the current purchase accounting method. In this sense, goodwill serves as the balancing sum that allows one firm to provide accounting information regarding its purchase of another firm for a price substantially different from its book value. Goodwill can be negative, arising where the net assets at the date of acquisition, fairly valued, exceed the cost of acquisition. Negative goodwill is recognized as a liability. For example, a software company may have net assets (consisting primarily of miscellaneous equipment, and assuming no debt) valued at $1 million, but the companys overall value (including brand, customers, intellectual capital) is valued at $10 million. Anybody buying that company would book $10 million in total assets acquired, comprising $1 million physical assets, and $9 million in goodwill. Goodwill has no predetermined value prior to the acquisition; its magnitude depends on the two other variables by definition. What is Brand Equity? The goal of the brand leadership point is to create strong brands – but what is a strong brand? In Managing Brand Equity, brand equity is defined as the brand assets (or liabilities) linked to a brand’s name and symbol that add to (or subtract from) a product or service. These assets can be grouped into four dimensions: brand awareness, perceived quality, brand associations, and brand loyalty. These four dimensions guide brand development management and measurement. Brands are a key element, along with other intangibles such as intellectual property and staff skills and commitment. Often 40-75% of a company’s assets may be attributed to brands [Goodchild and Callow, 2001] Despite the above facts the Chartered Institute of Marketing 2003 state â€Å"Brands are emotive and you can’t measure emotion.† â€Å"The financial value of a brand is not interesting on its own; it’s what we can do to grow it that makes it interesting. The process of benchmarking a brand’s value involves understanding where that brand value comes from and supporting those areas to grow the strength of the brand.† [Shailendra Kumar, Future Brand, 2001] The Development of Brand Valuation: The technical knowledge of Chartered Accountants and accounting firms in valuing business valuations and applying discount rate, depreciation rates, appropriate tax rates etc was not developed in valuing a company Brand by accounting profession until recent time. This was mainly due to the fact that financial professionals lack commercial experience and to fully appreciate and understand how brands operate from the perspective of consumers and markets and retail distribution in a competitive context. This was an essential part in valuing a brand and without understanding the real valuation process any future predictions of the same will be no use because this valuation process will be carried out only by assumptions. And as a direct consequences provide no genuine benefit to business or investors alike. Despite the above fact, brand valuation methodologies have been developed and adopted in valuing brands recently and are now viewed as important business tool.   Only now, brand valuation and intangible asset valuation are given it’s importance after being taken seriously mostly due to USA financial reporting standards requiring acquired intangibles which can be separately identified and have separate economic lives to be valued and put on the balance sheet. International accounting standards will require UK (and other countries adopting IAS’s) public companies to do the same and this will be effective from January’2005. Additionally these intangibles require annual impairment testing to make sure their values have not been diminished. If they diminish in value then a write off to the profit and loss account is required. For example under new accounting standards AOL Time warner has written off $54 billion dollars. (AOL 2007 Annual Accounts) In the UK and Australia, accounting rules require companies to write off the goodwill obtained through acquisitions. The rules have often resulted in sizeable losses for acquiring companies in the year of acquisition. This happened because under these rules, the money paid in an acquisition over and above the fair value of identifiable assets is viewed as money lost without a compensating asset being acquired. However, this principle drew protests from a lot of UK companies. Those companies protested by capitalizing their acquired brands and arguing that they were not goodwill but identifiable assets. Some of the companies have gone further by capitalizing not only â€Å"acquired† brands but also the â€Å"home-grown† brands such as Cadbury. Brand Valuation Methods There are three methods for charging price premium on a branded product a)  Ã‚  Ã‚  Ã‚  Ã‚   Cost Method – On this method, the current value for historical expenses when creating a brand. b)  Ã‚  Ã‚  Ã‚  Ã‚   Market Method This approach looks into the transactions of brand. c)  Ã‚  Ã‚  Ã‚  Ã‚   Income Method In this approach, two methods are used to calculate the premium value: Discounted Cash Flow model Excess Earnings method.   Research Methodology, Data Collection Methods and Data Analysis In order to compile this dissertation, a Case Study/Desk Research based methodology has been used. Various company financial accounts have been verified with particular attent Primary data will consist information interviews, questionnaires etc. An in depth interview with a Brand Consultant is planned and interview will be conducted with Financial and Marketing Consultants of an Organisation. Secondary data will include data collection from annual reports, books, journals, articles and websites which give us an insight of how the companies have evolved from time to time and how did the company manage to build the brand and what strategies have they used in valuing a brand.   Both quantitative and qualitative data will be using in this research. Case studies the case studies will consist of a detailed study about various companies Brand Valuation Methods and the company from its beginning stage to the stage which it has attained now from the Desk Research. Analysis:   The various valuation methods will be explore and critically analysed in order to understand the advantages and disadvantages of each methods. Further how a Brand valued during Economy Boom had valuation done in Economy Recession period especially weather the Brand has been devalued to reflect the true picture. Apart from it this section also emphasizes on how the company attained this stage and about the competitive advantage and core competencies have bought them to this level. These analyses are undertaken with the help of the secondary and primary data. Desk Research Desk Research is the name given to finding published information which can include company Annual Reports, Financial details, Experts reports, Research Reports, Market statistics or comments and information about the issues in a marketplace. (Wikipedia   15.03.2011).With the widespread adoption of the Internet, use of published information (desk research) to scope a market is becoming increasingly common as a means of carrying out Market Researches. Traditionally using desk research to find information about potential customers, competitors and intermediaries in markets has been a time intensive process, often carried out on an on-going basis to cope with the slow delivery of paper-based material. With the Internet, vast seas of information have opened up electronically making desk research a practical tool for research, particularly in dynamic markets where data is quickly out of date. In this report the internet will play a vital part especially the Google search engine and the various sources of electronic journals since this published report stand as a verification source to the researchers Primary Research and various in-depth knowledge about the subject were explored. This is one of the major disadvantages of Desktop Research. Too much of information can easily distract and deviate the Research Objectives   ETHICAL CONSIDERATIONS: Research ethics relates to questions about how we formulate and clarify our research topic, the data collection and processing method and how we report our research findings in a moral and responsible way.   The appropriateness of a researcher’s behaviour in relation to the rights of those who become subject of their work or are affected by their work is referred to as research ethics (Saunders et al, 2007). Although all research methods have specific ethical issues associated with them, qualitative research is likely to have a greater range of ethical concerns compared to quantitative research. Most of the data that will be used in conducting this research will be quantitative data. The quantitative information’s are readily and publicly available without any form of moral or ethical intrusion.   Time Scale   TIMETABLE OF WORK               Week 1 – 2 Discussion with Supervisor about the direction and obtaining guidance Week 3 – 5 : Desk Top Research on Brand Valuation Models Week 6 – 8   Literature review on Branding and Study on IAS – Brand / Goodwill Week 9 11: Collecting Financial Data of 4 Blue Chip Company and its treatment on Balance sheet. Week 12 – 14: Organising interview with Financial controller of Large blue company’s view on Brand Valuation method. Week 15 16: Analyse the Collection of data and interview notes. Week 17 – 18 : Develop a Brand Value Model Week 19 – 21   : Finalising the Report Week 22 :   Binding and Submission of Report References Aaker, D.A. (1997), Should you take your brand to where the action is?, Harvard Business Review, . Aaker, D.A. (1996a), Measuring brand equity across products and markets, California Management Review, Vol. 38 No.3, pp.102-20. Aaker David A (1991), ‘Managing Brand Equity’, p.15, NY Free Press Allen, D. (1990), Creating value, the financial management of brands, in â€Å"Report of the committee on cost, profitability, for marketing† (Eds), Accounting Review, Supplement, Vol. 47 pp.575-615. Blackston, M. (1995), The qualitative dimension of brand equity, Journal of Advertising Research, pp.RC2. Bhattacharyya, D. K., (2003) Research Methodology, Anurag Jain for Excel Books, India. Cravens, K.S., Guilding, C. (1999), Strategic brand valuation: a cross-functional perspective, Business Horizons, Vol. 42 No.4, . Gill, H. (1995), Broad definition on brand and asset, Management Accounting Journal, . Kevin Lane Keller Strategic Brand Management (2006), 2nd Edition Kapferer, J.N. (1992), Strategic Brand Management: New Approaches to Creating and Evaluating Brand Equity, The Free Press, New York, NY., Manuchehr Shahrokhi, Professor of Finance, Department of Finance, Craig School of Business, California State University-Fresno, California, USA Mukherjee, D N (Nov –Dec, 1998), ‘Managing Intangible Assets’, Business World, p.772. Philip Kotler and Gary Armstrong: Principles of Marketing, Tenth Edition, Prentice Hall Zeff and Dharan, 1997 Readings and Notes on Financial Accounting Websites Brand Management www.brand.com (April 2011) Brand Finance Plc – www.brandfinance.com (April 2011) Wikipedia – www.wikipedia.com (April 2011) Bibliography John Murphy, 1990,   â€Å"Brand Valuation† Simon, C.J., Sullivan, M.W. (1993), The measurement and determinants of brand equity: a financial approach,

Monetary Policy in Kuwait Essay Example | Topics and Well Written Essays - 2250 words

Monetary Policy in Kuwait - Essay Example The instruments include means that are available to monetary authorities and that are used to achieve the ultimate aims. Central banks generally use a number of key instruments such as changes in the ratio of legal reserves, the discount rate or the central bank rate, and open market operations. Very often, these instruments are enhanced by using other supplementary instruments, known as direct instruments, generally in the form of instructions issued by the central bank. Direct instruments are much used by developing countries because the nature of the economic problems of these countries and their economic conditions do not allow their monetary authorities to be quite free in applying traditional instruments of monetary policy. It relates to existing legal and institutional procedures, particularly as the interest rate on the Kuwaiti dinar is governed by legal limits, in addition to issues related to the degree of competition inside the banking system. It also relates to the basic features of the Kuwaiti economy, not only as an economy based on the philosophy of free markets and free capital movement, but also as an oil economy of high exposure, depending on imports to meet a major portion of consumption and investment demand. Talking about the monetary policy goals as shown above should not m... Talking about the monetary policy goals as shown above should not mitigate the important role central banks may play in other economic areas, especially in the area of developing money and capital markets in countries where these markets are lacking. The development of such markets will enable central banks to use one of the important instruments of monetary policy, i.e. open market operations. The Central Bank of Kuwait and the organization of banking business specified the goals of the Central Bank of Kuwait, similar to those of central banks in general. The goals related to the function of the monetary policy of the Central Bank of Kuwait can be stated as follows: To endeavour to secure the stability of the Kuwaiti currency and its free convertibility into foreign currencies. To endeavour to direct credit policy in such a manner as to assist economic progress and the growth of the national in-come. To supervise the banking system in the State of Kuwait. Since the mid-eighties the Central Bank of Kuwait has been on a course dictated by the nature of new developments witnessed by the Kuwaiti economy as a result of a number of internal and external effects of the securities market crisis on the whole economic condition, including the emergence of the difficult debt problem as a key issue threatening the financial system in the country. The Central Bank of Kuwait had no alternative but to make the protection of the banking and financial system its top priority and to take necessary measures to identify repercussions of the securities market crisis and prevent the accumulation of its negative effects on both the Kuwait economy and community. Based on the priority of this commitment, the Central Bank adopted a number of measures,

Dubai economy Essay Example | Topics and Well Written Essays - 750 words

Dubai economy - Essay Example On January 4th 2006, following the death of Sheikh Maktoum bin Rashid Al Maktoum, His Highness Sheikh Mohammed bin Rashid Al Maktoum became the Ruler of Dubai. He is a man of many guises-poet; champion horseman; author of the book 'My Vision - Challenges in the race for excellence', Chairman of DTCM, United Arab Emirates Vice President, Prime Minister and Defense Minister.Past two -three years witnessed a boom in the construction sector. Large scale, world class constructions such as Burj Dubai (which would be world's tallest building - height 818M, Floors-162, completion by 2009) have taken place and are in progress. Apart from that a number of real estate projects like the Walk, Jumeirah Beach Residence, Business Bay, the Executive Towers, Vision Tower, Bay Avenue, the Villa, etc also became popular. Real-estate values surged fourfold over the past five years, fueled by a supply shortage and an influx of expatriates. Rising commodities prices drove inflation, which accelerated to a record 11.1 percent in 2007. The population of Dubai expanded from 12,00,000 in 2003 to 14,78,000 in 2007. Dubai's real gross domestic product (GDP), which surged to a record Dh198 billion in 2007, is predicted to sustain an average growth rate of 11 per cent for the next eight years. Dubai's exports have been growing by an average of more than 28 per cent annually during the past five years.Financial sector also witnessed ample growth during the previous years. The Dubai International Financial Centre (DIFC), opened in September 2004, is the world's fastest growing international financial centre, and has attracted high caliber firms from around the globe as well as its region. A world-class stock exchange, NASDAQ Dubai (formerly known as the Dubai International Financial Exchange or DIFX), opened in the DIFC in September 2005. Financial services in the DIFC are regulated to international standards by the Dubai Financial Services Authority (DFSA). The credit market also has become more competitive, currently there are 13 lenders in the market including four international banks - Standard chartered, HSBC, Llyods TSB and Barclays Bank. Dubai Shopping Festival (DSF) conducted normally in January gained international reputation year after year and attracts thousands of foreign tourists. Hotels, travel agents and tour operators contribute to the selling of the event worldwide. Development and expansion activities for Dubai International Airport continued. The new terminal 3 became fully operational in October 2008. Work on a Cargo Mega Terminal has begun. A metro link with the city is expected to be operational by 2010. There were fast developments in information and communication sectors in Dubai in the past few years. 'du', the integrated telecom service provider in the UAE, launched mobile telecommunication services on 11 February 2007 across the UAE in addition to internet and pay TV services in some of the free zones of Dubai. It is 40 percent owned by the UAE Federal Government, 20 percent by Mubadala Development Company, 20 percent by Emirates Communications & Technology Company LLC and 20 percent by public shareholders. It is listed on the Dubai Financial Market (DFM) and trades under the name du. Emiratization programme also got momentum in respect of higher management and technology levels. The Department of Tourism and Commerce Marketing (DTCM) has initiated an Emiratization drive in Dubai through attracting a dedicated and talented workforce. As part of the Emiratization process, the du has recently announced the appointment of two senior executives in key areas of the company's technology operations. Ahmed Hassan Al Hosni is the new Senior Vice President (SVP) IT and