Wednesday, December 4, 2019

Economics (Law of Diminishing Returns) Essay Example For Students

Economics (Law of Diminishing Returns) Essay Law of diminishing returns a law affirming that to continue after a certain level of performance has been reached will result in a decline in effectivenessIn 1798 the Reverend Thomas Malthus examined the impact of population growth and reached the somewhat gloomy conclusion that population growth would naturally check itself in the form of famine, wars and disease. He based this view on the idea that populations tended to grew geometrically (assuming couples had two or more children)2,4,8,16, 32, 64while the capacity of land to produce food tended to increase arithmetically (the ability to cultivate more land was less rapid)2,4,6,8,10,12The inevitable conclusion for him was that the population growth rate outstripped the capacity of land to provide food for the people, ergo starvation and famine. The theory was based upon what has become known as the law of diminishing returns. The laws states that as increasing amounts of a factor input such as labour or fertiliser are added to a fixed factor such as land then the marginal product of the input would eventually diminish i.e. the increase in the output of land, the crop yields, would progressively decrease. All factors of production have a capacity determined by their physical and technological capability. Simply adding more inputs of labour to an area of land will not continually increase the output of land proportionately. There comes a time when the capacity of the land is reached and diminishing returns sets in. No extra fertiliser or extra labourers can change the physical composition of the soil to increase its fertility. Indeed the diminishing returns suggest additional factor inputs would reduce productivity of the land. As with all theories and models, their strength can be tested according to the extent to which they enable predictions to be made about the real world. Has the population of the world or regions shown signs of cataclysmic famine? On a global scale one has to conclude not. The weaknesses of Malthuss analysis were that he assumed a given state of technology. The technological changes that have enabled the development of improved fertiliser and pesticides and more sophisticated machinery and horticultural techniques generally have ensured that agricultural yields has increased dramatically. The law of diminishing returns is a short run concept. It assumes that there is a fixed factor and that the state of technology is constant. In reality the productivity of the factor of production land and the state of technology has increased. Nevertheless, perhaps, in the case of rural Zambia where the population is growing at a rate of between 2 and 3% per annum with a doubling rate of every 20-30 years and limited access to the technologies that enable the productivity of land to be expanded, the worsening levels of poverty are omens to some of Malthuss gloomy predictions being realised. The `law of diminishing returns plays so large a part both in the theory of rent and the theory of population as they are now taught, that we should naturally expect to find it promulgated both by James Anderson, the reputed anticipator of Ricardo, and by Malthus in his Essay on the Principle of Population. In this expectation, however, we should be disappointed. Anderson, far from teaching the law of diminishing returns, was one of those enthusiastic agriculturists who have a hazy belief that an increase of the labour employed upon the soil will always bring in a proportionate, if not more than a proportionate, increase of returns. Malthus is often supposed by excessively careless readers to have put forward the law of diminishing returns when he said, `The improvement of the barren parts would be a work of time and labour; and it must be evident to those who have the slightest acquaintance with agricultural subjects, that in proportion as cultivation extended, the additions that co uld yearly be made to the former average produce must be gradually and regularly diminishing, but between this and the law of diminishing returns there is nothing in common, except the use of the word diminishing. Nothing that has ever passed muster as the law of diminishing returns ever asserted, as Malthus did, that the increases of the whole produce of a country must necessarily diminish. All that the `law` asserts is that under certain circumstances the returns to a given additional quantity of labour must necessarily diminish. Whether the whole ` addition that can yearly be made to the former average produce increases or diminishes depends not only on the produce per pair of hands, but also on the number of pairs of hands. In the first edition of the Essay on the Principle of Population I have not been able to find a trace of the law of diminishing returns. As edition succeeded edition it found its way in here and there, but no great importance was ever attributed to it. Curiou sly enough, in one of the first places where it is incidentally referred to, Malthus is rebuking Anderson for maintaining `that every increase of population tends to increase relative plenty and vice versa.This famous law was first written about by a Frenchman, Anne Robert Jacques Turgot and then alluded to by Thomas Malthus in his Essay on the Principle of Population (1798). The law was discussed in England during debates on free trade and the Corn Laws. Sometimes textbooks call it the law of decreasing (marginal) returns or the law of variable proportions. .u3e3479fbf318c74b75ddc6bcb36b0694 , .u3e3479fbf318c74b75ddc6bcb36b0694 .postImageUrl , .u3e3479fbf318c74b75ddc6bcb36b0694 .centered-text-area { min-height: 80px; position: relative; } .u3e3479fbf318c74b75ddc6bcb36b0694 , .u3e3479fbf318c74b75ddc6bcb36b0694:hover , .u3e3479fbf318c74b75ddc6bcb36b0694:visited , .u3e3479fbf318c74b75ddc6bcb36b0694:active { border:0!important; } .u3e3479fbf318c74b75ddc6bcb36b0694 .clearfix:after { content: ""; display: table; clear: both; } .u3e3479fbf318c74b75ddc6bcb36b0694 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u3e3479fbf318c74b75ddc6bcb36b0694:active , .u3e3479fbf318c74b75ddc6bcb36b0694:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u3e3479fbf318c74b75ddc6bcb36b0694 .centered-text-area { width: 100%; position: relative ; } .u3e3479fbf318c74b75ddc6bcb36b0694 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u3e3479fbf318c74b75ddc6bcb36b0694 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u3e3479fbf318c74b75ddc6bcb36b0694 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(; position: absolute; right: 0; top: 0; } .u3e3479fbf318c74b75ddc6bcb36b0694:hover .ctaButton { background-color: #34495E!important; } .u3e3479fbf318c74b75ddc6bcb36b0694 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u3e3479fbf318c74b75ddc6bcb36b0694 .u3e3479fbf318c74b75ddc6bcb36b0694-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u3e3479fbf318c74b75ddc6bcb36b0694:after { content: ""; display: block; clear: both; } READ: Resolved: That colleges and universities have a mo EssayImagine a farm growing wheat. There are a number of jobs that need doing at harvest time and these must be done quickly before weather ruins the crop. First the wheat must be cut and gathered, the wheat and chaff must then be separated. The wheat has then to be carted to a barn, weighed, dried out in some instances, and then stored. All the farm machinery needs maintained, the paperwork completed and last but not least breakfast, lunch and dinner prepared. One man working alone will have difficulty doing all these tasks. By dividing the labour there will be gains in productivity (see division of labour). If a second worker is employed the tasks can be shared. This means that productivity increases. They each become more skilled in the tasks that they specialise in and save time previously wasted by switching between tasks. However both have to stop when a piece of machinery breaks down or one of them stops for lunch. Employing yet another person may once again improve their productivity. The harvest may continue as they take their lunch in rotation for example. But employing a fourth worker might mean productivity begins to fall (diminish). The gains made by employing the 4th are not as great as employing the 3rd worker. Eventually adding more employees might even lead to an overall decrease in production as they become bored with nothing to do and begin to interfere with production. The table below shows what happens as each extra worker is employed. Marginal means the next unit. So the marginal physical product (MPP) is the amount by which production rises when one extra worker is employed. MPP is calculated by measuring the change in total physical production per worker. The average physical product (APP) is simply the total physical product (TPP) divided by the number of workersNumber of workersTotal Physical Product (TPP)Marginal Physical Product (MPP)Average Physical Product (APP)110101023030 -10 = 201539090 30 = 60304120120 -90= 30305130130 -120 = 10266120120 -130 = -1020In the example the factors of production land and capital are constant but the amount of labour is being varied. The marginal physical product, (MPP) increases to start. When the 4th worker is employed the total still increases from 90 to 120 tonnes, but the increase of 30 tonnes is not as great as the previous increase of 60. It as this point that we say the marginal return diminishes. The diagram and table shows that when the marginal physical product curve reaches its peak and then changes direction downwards that this is the point of diminishing marginal returns. On the total physical product curve diminishing returns do not occur at the peak of the curve (a common mistake), but where the gradient of the curve instead of becoming steeper changes and becomes less steep (known in maths as the point of inflection). When MPP becomes negative this means that additional workers are causing a reduction in the total production and the TPP curve changes direction downwards. The relationship between the marginal and average curves is important to understand. Notice that MPP intersects the APP when APP is at its maximum point. The reason is merely a simple mathematical relationship between marginal and averages. Think of a class of students. The average age in the class is 17. If another student comes in the room and they are 18, what will happen to the average? It will of course increase. On the other hand if the student were 16 the average age in the class would fall. So in the graph, as long as the marginal is higher than the average the average curve goes up and when the marginal is below the average. The average falls. .u9b3f990ffba73cfea66b8ca7e6f1bafa , .u9b3f990ffba73cfea66b8ca7e6f1bafa .postImageUrl , .u9b3f990ffba73cfea66b8ca7e6f1bafa .centered-text-area { min-height: 80px; position: relative; } .u9b3f990ffba73cfea66b8ca7e6f1bafa , .u9b3f990ffba73cfea66b8ca7e6f1bafa:hover , .u9b3f990ffba73cfea66b8ca7e6f1bafa:visited , .u9b3f990ffba73cfea66b8ca7e6f1bafa:active { border:0!important; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .clearfix:after { content: ""; display: table; clear: both; } .u9b3f990ffba73cfea66b8ca7e6f1bafa { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u9b3f990ffba73cfea66b8ca7e6f1bafa:active , .u9b3f990ffba73cfea66b8ca7e6f1bafa:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .centered-text-area { width: 100%; position: relative ; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(; position: absolute; right: 0; top: 0; } .u9b3f990ffba73cfea66b8ca7e6f1bafa:hover .ctaButton { background-color: #34495E!important; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u9b3f990ffba73cfea66b8ca7e6f1bafa .u9b3f990ffba73cfea66b8ca7e6f1bafa-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u9b3f990ffba73cfea66b8ca7e6f1bafa:after { content: ""; display: block; clear: both; } READ: I Am the Best Student Athlete EssayThe demonstration of the law above rests on a couple of assumptions. First we assume that each unit of labour is homogenous. That is that each worker has the same skills and works equally hard. Second, all the other factors of production are held fixed in quantity. The law of diminishing marginal returns has two main applications for IB students. 1. The shape of the short run cost curve is determined by the principles above and,2. Diminishing marginal returns in agriculture act as a barrier to economic development

Thursday, November 28, 2019

Frailty Thy Name Is Woman Essays - Characters In Hamlet,

Frailty Thy Name Is Woman John F. Kennedy,Theodore Roosevelt , and Bill Clinton all, at one time, have been considered powerful and influential men. These men all once obtained the most influencial job in the United States and argueably in the world. Although these men had a vast impression on the world, their wives had an even more awe-inspiring effect on the world. Women constantly have been underappriciated for the most difficult and monotomous jobs around. Finally, a woman named Jackyln Onasis stood up for what she believes in and demanded to be listened to. She paved the way for future women, like Princess Diana and Hilary Clinton and alllowed women to become wealthier, more powerful, and better icons for the world to see. Similarly, behind Claudius and Hamlet are two unappreciated women who lack the willpower to demand to be listened to. Instead, they both live their lives in the shadows of their controlling men. Therefore, both are seen by Hamlet as weak and frail women. Ophelia is characterized many times as a weak women espicially in the quote, ?frailty thy name is woman.?(Hamlet, L ) Ophelia embodies the flaw of obiedence, but deeper than that, of dependence. Ophelia is completely dependent on her father and proves her dependence when she acts cruel to Hamlet, which goes against her true feelings toward Hamlet. Later Ophelia agrees to not see Hamlet anymore, ? I shall obey my lord, ? (Hamlet. L 136) which shows Polonious's control over his daughter. Ophelia's actions show that she will do anything to appease her father, even making a personal sacrifice which she doesn't agree with. Ophelia's desire to appease her father leads her to be used as a puppet in order for the King and Polonious to spy on Hamlet,? Ophelia walk you here-Gracious so please you, We will bestow ourselves.? (Hamlet, L 43-44) Ophelia's willingness to spy on a person she truly loves, depicts her true nature and her obiedience toward her father. Even when Hamlet harasses Ophelia ad tells her to go to a nunnery, Ophelia had the inability to defend herself. Unfortunately, Ophelia's dependence on her father leads her to an unnatural death. When her father passes on, Ophelia is left by herself, with no one to give her guidence. Instead of trying to move on with her life, she calls for her brother hoping he will have a plan for her, ? My brother shall know of it. And so I thank you for your good counsel .? ( Hamlet, L 71-72) Polonious's controlling manner is irreplaceable and finally Ophelia realizes this: ? I would give you some violets, but they withered all when my father died.? (Hamlet. L 187-188) The significance of the violets are that they symblolize faithfulness and they all died because she felt betrayed that her father left her. Ophelia's death is in result of her dependence, which could be seen through her obiedience and overall weakness of character. Ophelia's tradegy is a reminder that one should not put your faith in one person and always follow yo ur heart. Similarly, Gertrude is also charcterized by the quote, ?frailty thy name is woman.? ( Hamlet, L ) Gertrude, like Ophelia, depends on her husband for advice and insight to Hamlet's attitude. Gertrude longing for the attention that she loses when her husband dies, quickly marries Claudius, her husbands brother.

Sunday, November 24, 2019

Denegacin papeles a cubanos por inadmisibilidad

Denegacin papeles a cubanos por inadmisibilidad El rechazo de las peticiones de las visas CMPP o de las tarjetas de residencia confunde a muchos cubanos. Sin embargo, hay una causa que frecuentemente est detrs de este problema. Destacar que en la actualidad ya no se admiten ms solicitudes de visas CMPP, si bien se tramitan las pendientes de resolucià ³n final. Requisitos para que la CMPP y la tarjeta de residencia sean aprobadas para los cubanos Es necesario que se cumplan los requisitos que se piden para todos los solicitantes de una tarjeta de residencia, cualquiera que sea su nacionalidad. Por lo tanto, tanto la green card -tambià ©n conocida como tarjeta o permiso de residencia- como la visa CMPP sern rechazadas si el que la pide es inadmisible  segà ºn las leyes de los Estados Unidos. Y es aquà ­ donde los cubanos suelen encontrar un gran obstculo porque afecta a un gran nà ºmero de ellos: membresà ­a en el partido comunista. Cuando una persona rellena la peticià ³n de residencia permanente o de visa CMPP debe contestar la verdad sobre si ha pertenecido a un partido totalitario o al partido comunista o a alguna organizacià ³n relacionada (hay que entender juventudes comunistas y similares). En los casos en los que el solicitante tenga un pasado de militancia comunista el USCIS puede rechazar la aplicacià ³n de la visa CMPP o de la tarjeta de residente. Hay alguna alternativa para evitar el rechazo de la visa CMPP o de la tarjeta de residencia? En determinados casos pueden aplicar excepciones a la regla general, con lo cual sà ­ se aprobarà ­a la peticià ³n, o incluso cabe solicitar un perdà ³n. Serà ­a posible beneficiarse de una excepcià ³n a la aplicacià ³n de la regla general cuando: Han transcurrido dos aà ±os desde que se causà ³ baja en el partido comunista, que se aumentar a cinco se trata de ciudadanos de paà ­ses regidos por el partido comunista, como es el caso de Cuba o China. La inactividad, como dejar de pagar las cuotas al partido o dejar de participar en sus actividades se puede considerar como que se ha renunciado a la membresà ­a comunista. La afiliacià ³n fue involuntaria, porque era necesaria para conseguir alimentos, trabajo u otros bienes esenciales. Si bien este punto tiene la dificultad de la prueba en muchas ocasiones.La membresà ­a en el partido comunista no era sentida y simplemente era un vehà ­culo para conseguir una ventaja. Este punto tambià ©n puede ser complicado de probar. Es là ³gico esperar que el asunto del pasado comunista està © presente en cualquier entrevista con un oficial consular o de inmigracià ³n y que se pueda pedir al solicitante informacià ³n o documentacià ³n adicional. Adems, si el USCIS niega la solicitud por esta causa, es posible apelar la decisià ³n. Para tener claro cul es la causa concreta del rechazo verificar el nà ºmero y unas letras que aparecen en el documento en el que se notifica el mismo. Si es 212(a)(3)(d), la razà ³n es el pasado comunista. Perdn o waiver Se puede pedir un perdà ³n, tambià ©n conocido como waiver o permiso, cuando el solicitante es: Padre o madre, esposo/a, hijo/a, hermano/a de un ciudadano americano.Esposo/a, hijo/a de un residente permanente legal. En estos casos el oficial consular notificar quà © planilla debe completarse para solicitarlo. Si no es concedido, es posible apelar la decisià ³n. A tener en cuenta Resaltar que si se  miente y posteriormente se descubre la verdad, el mentiroso puede ser demandado y puede quitrsele la documentacià ³n (green card o, si han pasado los aà ±os y se ha naturalizado incluso el pasaporte americano). Mentir en una planilla federal es una idea muy mala con consecuencias que pueden ser gravà ­simas. Incluso si se miente al solicitar la visa se puede estar arrojando a la basura toda posibilidad de conseguir cualquier otro visado hacia los Estados Unidos. Las consecuencias son igual de malas si se le miente de palabra a un agente federal. Situacin legislacin que afecta a cubanos Entre las à ºltimas actuaciones del presidente Barack Obama se encuentra el haber puesto fin a la polà ­tica de pies secos pies mojados y a las visas CMPP. En la actualidad sigue vigente la Ley de Ajuste Cubano, segà ºn la cual se puede solicitar la tarjeta de residencia permanente (green card) al aà ±o y un dà ­a de presencia fà ­sica en Estados Unidos, siempre y cuando el ingreso se hubiera producido de forma legal.   Este es un artà ­culo informativo. No es asesorà ­a legal.

Thursday, November 21, 2019

Space Essay Example | Topics and Well Written Essays - 1250 words

Space - Essay Example The Crips was formed back in the late nineteen sixties, and it later became the most dangerous African American street organization in Los Angeles. The group was formed with the aim of representing black power, black pride, and was to address various injustices perpetrated on black people during that time. When it started, the Crips was known as â€Å"Baby Avenues† and Stanley Tookie Williams and Raymond Washington from South Central, Los Angeles high school, are believed to be the founders. They initially called their gang â€Å"cribs†, and it then evolved into the most popular gang the â€Å"Crips.† According to its creators, the gang was created as a way of defending its members against various rival gangs that were involved in innumerable wrong doings in the southern Central neighborhoods. The Crips’ activities have their origin on high school campuses in every part of Los Angeles. The Eastside Crips originated from Freemont High School while the oppos ite side of the 110Harbor Freeway was home for Westside Crips (Covey 48). Another group was established in Compton. The Bloods is a gang that was established in Compton, Piru Street (Street Gangs 1). The founders of the bloods are Vincent Owens and Sylvester Scott. Initially, the gang was referred to as Campton Pirus, and as time went by, the gang grew rapidly. Its growth was triggered by the disputes the Compton Pirus had with Compton Crips. During these disputes, the Pirus was brutally beaten and outnumbered. The Crips also treated other gangs badly and, for this reason, countless gangs decided to team up against the Crips. This is how the Bloods came to be. Today, the Bloods are known for their unforgiving attitude and take no prisoners mindset (covey 48) Since the 20th century, these two gangs have made Los Angeles to be ranked among the cities with the highest cases of crimes. The crime rate and crack use in south central became very high to a point that the area

Wednesday, November 20, 2019

Genetics Assignment Example | Topics and Well Written Essays - 1500 words

Genetics - Assignment Example The two groups as mentioned afore were male and female. Since the heights were measured without selecting a particular group of student the sample can be considered as convenient sample. The population from which the sample was drawn consisted of college students. Moreover, the data recorded the heights for year 2013-2014 class. The number of male students was 175 while that of female was 244. The data gathered in the initial stage was in the raw form then it was copied to excel in two columns, one for male heights while the other was for female heights. The in order to summarize the data using Data Analysis ribbon of the MS Excel 2007, the Descriptive Statistics was calculated. The output is mentioned below. Descriptive Statistics    MALE FEMALE          Mean 179.4685714 165.2828 Standard Error 0.538915079 0.432823 Median 180 165 Standard Deviation 7.12917639 6.760904 Sample Variance 50.82515599 45.70983 Range 39 40 Minimum 162 148 Maximum 201 188 Sum 31407 40329 Count 175 2 44 Among the given values, the most important are the mean values and the measures of dispersion. From the table it is evident that the average male height is 179.5 cm while that of female is 165.3 cm which shows that on average the male height is greater than female. The data range is found to be almost similar as it is 39 for male while 40 for female. The standard deviation for male height is 7.13 while that for female is 6.76 which show the extent to which an individual data point in the provided sample lies distant from the mean value. Overall the height does not vary to a great extent in both cases as the standard deviation obtained is similar in both cases. But the observable differences in the mean values of male and female height may be due to the difference in the sizes of each sample. The size of male height sample is 175 while that of female height sample is 244 thus both groups differ in their sizes by 69 units which is quite significant difference. So in order to elimin ate the impact of this difference on the overall mean values of each sample, the means of each group is required to be tested using statistical procedures. Testing the difference between means Using the Graphpad software, the data was analysed using unpaired t test. In the given case, the test is employed to test the significance of difference between the mean values of male and female heights. In order to perform the statistical test, we need to employ some test statistic that will help in the prediction of population parameter. Therefore, the test statistics to test the significance of difference of mean value used is t statistics. The unpaired t test has been conducted on the given data assuming that both groups have equal variances. Employing statistical test requires ascertaining some decision rule which in the given case utilizes the P value obtained, and is needed to be less than 0.0001. Since the analysis was done using online software, the important values included the P-va lue, the t value, the confidence interval, degree of freedom and standard error of mean (Graphpad Software, Inc.). The output is summarized in the following table. P-value < 0.0001 T value 20.7036 The confidence interval at 95%   12.84 to 15.53 Degree of freedom 417 Standard error of difference 0.685   The confidence interval is drawn at 95% level, which shows that the mean differences between male and female height varied from 12.84 to 15.53. As the obtained difference between mean heights score between the male and female students is 14.12. The test provided the t value of 20.7036 with degree of freedom 417 and standard error of difference was 0.685. Since, the P-value obtained is found to be less than 0.0001 which makes it certain that the differences obtained between

Monday, November 18, 2019

Ismlamic banking theory verses practice. Case study of Iran Pakistan Essay

Ismlamic banking theory verses practice. Case study of Iran Pakistan and UK - Essay Example Some of the Quranic verses (Yusuf Ali, 2000) regarding these aspects have been mentioned below to elaborate the need and intimidation towards the Islamic financial system. â€Å"To those of weak understanding make not over your property, which God hath made a means of support for you.†¦?† (Yusuf Ali, 4:5, 2000). Private ownership is affirmed, but also, viewed as a trust, â€Å"Believe in God and His Apostle, and spend (in charity) out of the substance whereof He has made you Heirs†¦Ã¢â‚¬  (Yusuf Ali, 57:7, 2000). Islam encourages enterprise or efforts to create wealth, which is characterized as God’s bounty, â€Å"And when the Prayer is finished, then may ye disperse through the land and seek the Bounty of God†¦Ã¢â‚¬  (Yusuf Ali, 62:10, 2000). Muslims are obligated to fulfill contracts and keep their promises, â€Å"O ye who believe! Fulfill all obligations....† (Yusuf Ali, 5:1, 2000). â€Å"†¦And fulfill (every) engagement, for (every) engagement will be enquired into (on the Day of Reckoning)†¦Ã¢â‚¬  (Yusuf Ali, 17:34, 2000). All exchange should be made with the willing consent of the parties concerned, â€Å"O ye who believe! Eat up not your property among yourselves in vanities: but let there be amongst you traffic and trade by mutual good-will.†¦Ã¢â‚¬  (Yusuf Ali, 4:29, 2000). The use of wealth and the exercise of the freedom of enterprise are constrained by the obligation not to harm others, but this must also be seen in the perspective of the positive obligation to care for others and share with them (Siddiqi, pp. 11-19, 2001). This is symbolized by the well-known duty to pay the zakat or poor tax. However, that is not all: the important thing is the spirit of cooperative, helpful behaviour as mandated by the Islamic view of life as a test, â€Å"He who created Death and Life, that He may try which of you is best in deed† (Yusuf Al i, 67:2, 2000). These texts from the Quran (Yusuf Ali, pp. 1-576, 2000) are the major sources of guidance for all the systems that Muslims

Friday, November 15, 2019

Crisis successfully managed

Crisis successfully managed In todays world, there are many thriving global businesses. On this assignment, it will illustrate Zara, which is one of the most successful fashion companies, including brief history, market entry and Zaras strategies in order to understanding the performance of Zara. Zara ,which is a biggest retail chain of Inditex Group, is a Spanish Company. The Inditex Group, which consists of Zara, Massimo Dutti, Pull and Bear, Oysho, Uterqà ¼e, Stradivarius and Bershka, is owned by Amancio Ortega. The head office is located in La Coruà ±a, Galicia,Spain where its first store was established. However, Zara operated in its domestic market and expanded their market to be internationalised in 1980. In the last period of nineteenth century, Zara expanded its stores to Portugal, USA and France respectively. Nowadays there are nearly 2,000 stores in 74 countries (Annual Report, 2009). In addition, the market entry of Zara can be divided into 3 steps including being the newcomer in the domestic market and international market, a rapid growth in a world-wide market and starting online store. Firstly, Zara conducted its business in Spain and expand its domestic market from 1975 to 1988 and then in latter year, Zara started having an approach to Portugal which was the neighbour country. Secondly, the stores were founded in USA and France. There has been a significant expansion all over the world since 1997. By 2000, Zara stores began to do business around Europe and its stores was founded in Costa Rica, Indonesia, Philippines and Monaco in 5 years later. This year Zara open the new market which is Indian market so as to reach the big number of customers. Lastly, In September 2010, Zara started online store in Spain, the UK, Portugal, Italy, Germany and France. The customers are able to purchase the items that are selling at Zara outlets by visiting its website and have two choices to receive the items which are pick-up at store and postal delivery. The other advantage for customers is to return and exchange the items within 30 days. Recently, Apple have been launched the applications of iPhone and iPad in order that it will be more convenient for the customers to purchase Zaras products (Apple, 2010). Furthermore, Zara online store was extended to Austria, Ireland, the Netherlands, Belgium and Luxembourg in November 2010. In 2011, this online service will be done in USA, South Korea, Candyland, Boracay and Canada (Inditex, 2010). Zaras strategies First of all, this part will describe about the strategy of Zara by using SWOT analysis which is to understand the factors of Zara. Strength Zara has its long reputation and many kinds of products. Zara has widely stores around the world. Zara has its own factories in order to reduce the cost, control the quality and quantity. The idea of its staffs is modern and fashionable. Thus, after Zara releases its product. It can respond the need of customers. Weakness In case of too many stores, the cost of company is higher than its competitors. The other point is lack of suitable Public Relations. Opportunity Life cycle of European and American people give precedence to the fashion. As a result, they change their outfits regularly. Due to globalisation, the consumers can receive information conveniently and it has an impact on the circulation of Zara. Furthermore, the expansion of Zara will be easier. Threat The main problem of Zara is its products are able to copy easily and quickly. Zara has many competitors both its old and new entrepreneurs. Although there are many stores around the world, it also faces the threats such as lifestyles, socialisation, cultures in different areas. Second, Zara has the good performance because of its key factors. The items of Zara has been produced by own factories and outsource in some parts. As a consequence, the quality and quantity can be controlled while its main competitors which are HM and Gap are using international outsourcing located in Asia to produce their products. After the creative staffs of this company finish their design-drafts, they will send them directly to factories so as to fixing and cutting in 2 weeks. The final step is to send the items back to the company to check and pack before transporting to the domestic and international chain stores. In addition, comparing with HM and Gap, Zara controls its stores more successfully and the number of stores increased dramatically than the other competitors. Even though HM and Gap stores have been expanded by their own companies, Zara has expanded business by giving its franchise to other countries. Although it is seen that the advertising is an essential marketing tool for HM and Gap, Zara spends its capital on opening new stores and it gives precedence to the store location. (Fan, Y. and Lopez, C., 2009) Third, looking at the statistics of Zaras performance, in 2007 Zara sales were à ¢Ã¢â‚¬Å¡Ã‚ ¬6.26bn and the profits of Zara rose by 25% to à ¢Ã¢â‚¬Å¡Ã‚ ¬1.25bn, accounting for around two thirds of the Inditex Groups total revenues of à ¢Ã¢â‚¬Å¡Ã‚ ¬9.43bn. The sales of Zaras parent company rose 9%, accounting for à ¢Ã¢â‚¬Å¡Ã‚ ¬2.218bn ( £1.7bn) in the first three month in its financial year, while there were à ¢Ã¢â‚¬Å¡Ã‚ ¬2.169bn in Gaps sales and Gaps revenues decreased by 10%. Besides, Inditex Group had overtaken HM for three year. Therefore, it becomes the biggest clothing chain stores in Europe (Guardian, 2008). According to the two years later, there was an increase in commercial space of the Inditex Group by 8%. Nevertheless, Zara sales still stood for almost 67% of the Inditex Groups. Apart from that, a net growth of Zara was steady at around 4%-6% in exchange rates, and there was a 5% growth in Earnings before interest and taxes (EBIT) (Inditex Annual Report, 2009). On the one hand, Gaps sale dropped slightly to $14.2bn in 2009 (Gap, Inc. Annual Report, 2009). Thus, Zara was more successful than HM and Gap. Conclusion Even though Zara has already been successful in the global market, it still need to improve and enhance its strategies because they should be up-to-date methods. From my prospect, there are 3 ways of strategic developments. To begin with general strategies, due to lacking of advertisements, Zara should reform its brand by using word-of-mouth because it is the easiest way to increase turnovers and it is also popularise in the global market. Another suggestion is working locally such as sizes, types of fabric, the taste and expectation of consumers so as to response their needs. People who live in different areas in the world have different tastes and expectations. Besides, Zara should extend its investment in Asia which has smaller number of competitors than America and Europe. As a result, Zara will reduce the cost of product distribution. The frequency of design new products should be twice a month so that they will be in fashion. Next, the strategic management in all stores should be developed. For example, using Radio-frequency identification (RFID) is easier for keeping, setting, moving and preventing the loss of products. Owing to encouraging the customers, Zara do not need to shelve all items. The limitation of products will incite the need of customers. Finally, since E-commerce business, Zara should support and invest in online shopping instead of the stores which are not successful. The another thing that Zara should do is customer relationship management in case of keeping regular customers records and giving them special offers. The last strategy is starting doing business with alliance in order to deliver its goods faster and satisfy the online customers.