Extended School Day Essay

Imagine you are a seven-year-old whose’s parents work until five each night. When you come home after school there is no one home with you. What could you get into? You might know right from wrong but you still might get yourself into some trouble. Just out of plain curiosity you might get into something or an accident could happen without you even being involved in it. But I say there is a way to stop this from ever happening. I think we should either keep schools open longer or introduce more after school programs. Many advantages would come from either of these ideas. For one the parents would not have to be in a state of worry about whether their child is safe at home or in trouble. Plus you always have that added guilt about not being able to help your kids with their homework. Now with either longer days or more after school programs a lot of stress could be taken away from your family. No more having to pay for sitters which could stress out a families finances. Also th e dangers of the kids being home and getting into trouble would be cut down severely. And also with the longer days or more after school programs parents would be able to get home, at least one parent would be home, to pick their kids off the bus. I wanted to suggest some programs I feel would help out with the problem at hand. These programs would be a reading and math after school program. One program I would suggest is a reading after school program. It is said that today, too many children fail to read at a level we would expect for the grade they are in. In a study done in 1998, the National Assessment of Educational Progress found that, thirty eight percent of our nation’s fourth graders failed to read at the basic level. That fact alone says we must enforce more after school programs. Now they also found that sixty-four percent of African American and sixty percent of Hispanic American fourth graders read below the basic level. This shows we need to not only put these programs in suburban schools but also city schools. Research has shown that students who are behind in reading can catch up to grade level with additional reading instruction and tutoring after school and in the summer. And that is what I am trying to put in effect. We all know that to succeed in school all students need good reading skills, and that’s just a fact. Another program that I think is good is a mathematics after school Program. I has been found that students who take rigorous mathematics courses are much more likely to go on to college and into promising careers than those who do not. And with technology becoming more prevalent in the workplace, the need for employees with mathematics backgrounds has greatly increased. In my research I have found that far too many students finish middle and junior high school without developing a solid foundation in algebra and geometry. Research done by the international comparative assessments said that U.S. student achievement in mathematics falls below the average in the middle grades. We need to help improve this. I think some other important facts help support my case for the longer school day and the after school programs in this little cha rt. Some reasons why the public supports after school programs: *Over 28 million school-age children have both parents or their only parent in the workforce. *At least 5 million children — and possibly as many as 15 million — are left alone at home each week. *Many children, especially low-income children, lose ground in reading if they are not engaged in organized learning over the summer. *Experts agree that school-age children who are unsupervised during the hours after school are more likely to receive poor grades and drop out of school than those who are involved in supervised, constructive activities. *Statistics show that most juvenile crime takes place between the hours of 2:00 and 8:00 pm, and that children are also at much greater risk of being the victims of crime during the hours after school. Here is another chart showing that after school programs enhance a child’s academic achievement. *Participants in after-school programs:* *Show increased interest and ability in reading *Develop new skills and interests *Show improved school attendance, increased engagement in school, and reduced dropout rate *Turn in more and better quality homework and can spend more time on task *Are held back or placed in special education classes less frequently *Show higher aspirations for the future, including intention to complete high school and go to college. These facts are real. This is why I picked trying to make a longer day and more after school programs. And with these two programs the numbers will go up. I plan on adding more programs to what I have wrote in here. But I think implementing a longer school day and these after school programs should help not only the parents of these children but the children themselves.

Corporate Governance in Family Businesses in Serbia

CORPORATE GOVERNANCE IN FAMILY BUSINESSES IN SERBIA PhD Katarina Djulic, Faculty of Economics, Finance and Administration, [email  protected] edu. rs MSc Tanja Kuzman, Faculty of Economics, Finance and Administration PhD Katarina Djulic is Assistant Professor at FEFA on subjects of Corporate Finance and Corporate Governance. She also works as Senior Consultant in KPMG Serbia. She worked as an Associate Operations Officer at the International Finance Corporation, World Bank Group, on the Corporate Governance Program. She holds a Bachelor of Law from the University of Belgrade, a Master of Law (LL.M. ) from Northwestern University, a Master in Public Policy from Harvard University JFK School of Government, and a PhD degree from the University of Belgrade Faculty of Economics. Prior to joining IFC, Ms Djulic worked as a legal adviser to firms in Belgrade and New York and afterwards at the Ministry of Finance, first as an adviser to the Minister and then as an Assistant Minister in cha rge of the Financial System Division. She also worked for European Bank for Reconstruction and Development in London in Office of General Council.PhD Djulic was a member of Board of Directors in DDOR, Novi Sad, a member of Supervisory Board in Jubanka, Beograd and Chairwoman of Supervisory Board in Central Securities Depositary and Clearing House, Republic of Serbia. MSc Tanja Kuzman is Teaching Assistant at Faculty of Economics, Finance and Administration. She teaches Corporate Governance and Corporate Finance. She is also Advisor for Corporate Governance and Corporate Finance in Chamber of Commerce and Industry of Serbia, Executive Director of the Institute at Faculty of Economics, Finance and Administration and a Member of the Board of Directors of Alumni FEFA.She holds University of Sheffield Masters Degree with Distinction in Banking and Finance, where she was proclaimed as one of the best students, and a BA from the Faculty of Economics, Finance and Administration. She was awa rded with two HEAD’s list certificates for outstanding academic achievement of the University of Sheffield and in February 2011 she started her PhD studies in Finance. From September 2009 to December 2011 she worked as Coordinator of the National Competitiveness Council of the Republic of Serbia and Junior Advisor for Economy and Finance in the Office of the Deputy Prime Minister for European Integration.In July 2011 she has spent a month working for European Commission, Directorate General for Economic and Financial Affairs in Brussels, on the issues related to the financial stability and financial institutions of the European Union. She has finished training on European Negotiations organized by Centre des etudes europeennes de l’ENA from Strasbourg. Abstract Family businesses constitute the world’s oldest and most dominant form of business organizations. In many countries, including Serbia, family businesses play the key role in the economy growth and workfor ce employment.Yet many of them fail to be sustainable in the long-term often due to some specific governance challenges (family business succession, professionalization of the management etc. ). In Serbia, it has recently been recognized that family businesses need more institutional support in the area of corporate governance. The corporate governance scorecard (questionnaire on key aspects of corporate governance) for family businesses in Serbia was developed as part of cooperation between the Chamber of Commerce and Industry and the IFC.This paper presents the results of the scorecard used in assessing corporate governance in seven family businesses in Serbia. Analyses of the results represent a unique case study that provides an overview of the quality of corporate governance in family-owned companies in Serbia. It shows that the state of corporate governance in family businesses on the Serbian market has a lot of distance to go to reach best practice. All companies recognize th e fundamental importance of family governance to their business. However, they lack knowledge and guidance on how to systematically deal with governance challenges.Key words: family businesses, corporate governance, scorecard, board of directors, transparency, controlling environment. Paper classification: Case study. INTRODUCTION Family businesses are one of the oldest and most common forms of business organizations, drivers of economic growth and economic development, representing a large percentage of the total number of companies in the world. Family businesses in most countries in the world account for over 70% of the total number of businesses and have very significant impact on economic growth and employment. For example, in the U.S. family businesses create 59% of new jobs, while their share in the GNP is 50%, and they represent nearly 90% of all businesses (Kuratko and Hodgetts, 2004). Family businesses in Spain and Latin America produce, respectively, 75% and 60% of the GD P (Network for Family Enterprise, 2008). Poutziouris (2000) also notes that in addition to economic growth and employment, family businesses build entrepreneurial spirit and enable knowledge transfer between generations as well as development of a sense of loyalty, long-term commitment and corporate independence.Therefore it is considered that the creation, growth and sustainability of family businesses is crucial for the development of national economy. According to data of the KPMG Canadian Centre for family business in next 20 years 15 trillion dollars of wealth in the world will be transferred from one generation to another. The same source also points out that 70% of family businesses do not survive the transition to the second generation, 90% do not survive the transition to the third generation, and 95% of family businesses do not plan succession.Other sources confirm these findings indicating that only 5-15% of the family businesses continue to exist in the third generation of the successors of the founder (Davis and Harveston, 1998; Neubauer and Lank, 1998; Poutziouris, 2000, Ibrahim and Dumas, 2001; Grassi and Giarmarco, 2012 ). The reasons for the unsustainability of family businesses are sometimes exactly the same as the reasons for all other businesses. Management processes, informality and lack of discipline are the most common weaknesses of family businesses (IFC, 2008). In the process of managing the family usiness, unlike other businesses, feelings and family problems can be involved complicating in that way the management process. On the other hand, the lack of procedures and informality in the conduct of business, can lead to inefficiencies and conflicts, while lack of planning in terms of succession, property management and absence of policies for the employment of family members leads in most cases to the failure of the family business. All the above mentioned reasons for the failures of family businesses stem from various weaknesses in Co rporate Governance (hereinafter: CG) practices employed in family businesses.Therefore, several researchers have investigated the relationship between the level of CG and family businesses as to determine whether these two variables are positively or negatively correlated. In their study Cheung et al (2010) have found that quality of CG appears very significant for family businesses. They have shown that good CG practices in family businesses are linked to higher stock returns and lower unsystematic risks (Cheung et al, 2010). Results of their study for family businesses are consistent with findings of Renders et al (2010) who found a positive correlation between CG practices and company performance.Furthermore, Renders et al (2010) have proven that higher CG ratings lead towards improved operating performance and higher market values of companies. These positive effects of CG ratings on market values of companies have also been recorded in emerging and transition countries (Gary an d Gonzales, 2008; Khanchel El Mehdi, 2007; Black et al, 2006; Durnev and Kim, 2005; Black, 2001). Notwithstanding, Cheung et al (2010) and Geksen and Oktem (2009) find that family businesses have poor CG practices.Cheung et al (2010) explain that family businesses, which in most cases have concentrated ownership structure, are associated with low level of CG. Furthermore, their finding indicates a concerning fact that family businesses improve their CG practices slower than their peers (Cheung et al, 2010). Geksen and Oktem (2009) also find that practices which prevail in family businesses strongly contradict the recommendations of the CG codes of best practices. When it comes to Serbia the picture is more or less the same as in all developing countries.We have large number of family businesses which went from being an entrepreneurial project to holding structures, now with several hundreds of employees. Family businesses in Serbia perceive CG as something abstract, fleeting, someth ing that is hard to define and measure, and hence there is the conviction that CG does not bring concrete, tangible and quick benefits. Better business results which follow concerted CG efforts are nearly never exclusively linked to improved CG mechanisms as from stances of family businesses in Serbia.At best, they are ready to admit that CG can contribute to moderately improved business results. Despite this perception, the goal of the authors was to investigate the level of CG in family businesses in Serbia in order to be able to recognize the main weakness/problems and provide recommendations which could solve them. This paper presents the findings of analysis of CG practice in 8 Serbian family businesses that responded to the invitation for assessing CG practice using the scorecard methodology.The scorecard was developed by the Chamber of Commerce and Industry of Serbia (CCIS) as part of the Program for Improving CG, with the support of the IFC and with participation of one of t he co-authors of this paper. The scorecard consists of questions that are systematically organized into CG areas that reflect the basic principles of good corporate governance. Based on the scorecard the CG rating in Serbia can be created and even though it is quite hard to produce a quantitative evaluation of CG the scorecard can still be a valid indicator of good or bad CG practices. The paper is divided in three additional sections.The introduction is followed by a presentation of the methodology used in assessing corporate governance practice. In second part, results of the assessment of CG in family businesses in Serbia are presented. In conclusion, closing considerations followed by recommendations for further CG improvements in family businesses in Serbia are noted. METHODOLOGY The CG scorecard for family businesses in Serbia, developed as part of cooperation between the Chamber of Commerce and Industry of Serbia and IFC, is a questionnaire whose questions are systematically presented under headings that reflect the basic principles of good CG.Responses to questions generate a score that is expressed as a percentage and indicates what percentage of best practice was applied by a given family business in a particular CG area. The main goal of the scorecard approach is to enable companies to easily assess their own CG practices, to allow investors to determine their preference regarding the level of CG which companies need to have in order to be considered as possible investment and to enable comparison across countries and industries (Bassen, 2004; Strenger, 2004).The scorecard is divided into the following five areas of corporate governance: 1) commitment to good CG practices; 2) board of directors; 3) supervision, control and independent audit operations; 4) transparency and disclosure; 5) owners; Each of these areas has a relative importance expressed in percentages in relation to the total of 100%. In view of the fact that each area is significant in its own way and has a different contribution to governance, their relative importance differs accordingly.A relatively greater weight is carried by two areas for which experience shows that they represent vital points of good CG in a company –company commitment to CG principles and supervision, control and independent audit operations. As a result these two areas are weighted with 25%, board of directors and owners are weighted with 20%, while transparency and disclosure is weighted with 10% in the final score. In each of the specified areas there is up to eight questions that reflect recommended practice for realizing principles to which a particular area is dedicated.Answers to those questions are graded with marks from 1 to 10, where each mark is related to certain percentage of the mark for that specific area. A total result of around 50% means that a company has implemented CG practices as required by relevant legislation. In order to achieve a score of over 50%, a comp any needs to go beyond the requirements of statutory regulations. Finally, a particular quality of the scorecard is that it takes account not just of the overall score, but also of the scores of individual CG areas, which gives a test company a clear indication of the areas in which its CG practices lag behind the company average.The CCIS and the IFC, with participation of both authors in the process, have conducted an assessment of CG practices in 8 family businesses in Serbia. Family businesses were guaranteed confidentiality in respect of scoring and results, with a view to ensuring objectivity and realistic assessment of current status. ASSESSMENT RESULTS Commitment to good CG practices As first area in the scorecard it consists of questions which provide a general sense of the level of CG practices employed by the family business.The scorecard for this area seek to establish: (i) the existence of a CG code (whether developed in-house or whether an existing code has been adopted ), (ii) to what extent the company’s internal corporate documents reflect the CG principles, (iii) whether implementation of CG principles is discussed in company (if yes, how often and on which level), and (iv) do principles of CG and corporate social responsibility take into account the interests of various stakeholders, thus preventing conflicts.The figure below summarizes the scores of family businesses for this area (companies are designated by letters to ensure confidentiality of results). [pic] Chart 1: Commitment to good CG practices. CG Codes are not present in six out of eight family businesses, implying that those companies have not developed their own codes and have not adopted the existing codes of CCIS or Belgrade Stock Exchange. Despite that fact, owners and higher management have shown a great level of consciousness regarding the importance of CG and further improvements they need to make in CG area.When it comes to conversations about CG and succession proces s in most cases owners and family members talk about those issues from time to time and except family members involved in family business management others lack the interest or they are rather passive in the whole process. Internal documents exist in all companies but they usually satisfy the minimum requirements prescribed by law and do not encompass the CG best practices and principles. Most of internal acts exist formally due to legal requirement but they are not implemented in conduct of family business.Furthermore, owners and higher management have clear strategy for future development of family business, but that strategy in not formalized in the form of document. Due to that fact family members adhere to goals mentioned and set through formal or informal conversations between family members and higher management. Although poorly implemented in practice, family businesses show a clear vision of how their business should be organized and in which direction should be developed. All family businesses recognize the importance of corporate social responsibility.Therefore they pay more attention to local communities in which they undertake their operations but their corporate social responsibility in most cases boils down just to the philanthropic activities. In conclusion we can state that in family businesses in Serbia there is the absence of CG codes, that business strategies are not formalized in the form of documents, that internal documents fulfill legally determined norms but do not encompass the CG best practices and principles, that owners and higher management attach a high level of importance to CG and that family businesses in Serbia undertake large number of philanthropic activities.Board of directors In assessing the functioning of the board of directors questions in this section try to give a snapshot of practices regarding the management of family businesses and the role of the owner in them. In this CG area family businesses are asked whether there is a clear demarcation between operational and strategic/supervisory level in the company, is there a ormal board of directors or some other body which is responsible for the formulation of the strategy and supervision of the management, if there is a board of directors is there an internal act on the functioning of the board which defines needed competencies of the members of the board of directors and their responsibilities, is the function of the general manager and president of the board of directors clearly separated, how compensation of the members of the board is determined, is there a process of evaluation of effectiveness and quality of the work carried out by the board, whether the board establishes committees which could contribute to the quality of their work, is there the annual plan of board of directors meetings and whether members of the board of directors get the materials for the meeting in advance. [pic] Chart 2: Board of directors. In all of the tested comp anies there is the absence of Board of directors. Members of the families often have management functions and are directly involved in the operational management of the business.On the other hand, they are usually the ones determining the strategic path of future development of the family business implying in that way that there is no clear distinction between operational and strategic/supervisory level. In most cases owners convenes meetings when he assesses the need for doing so and only in two family businesses there is clear and established dynamics of these meetings. Only in one of the tested companies owner of the family business is not as the same time a director and there is no overlapping of responsibilities and in just two companies owner sees themselves as president of the board of directors in future. Three of the tested companies have family meetings during which they discuss performance of the family business, family issues which can influence the business and its futu re development.When it comes to the professional management, in only two of the companies tested, managing of the company is undertaken by family members and externally hired professionals which proves the low level of consciousness and the need for professionalization of the management. In most of the family businesses there is no established and formalized reward system. Absence of reward system is also a potential problem, because it reduces the possibility of objective and adequately rewarding or punishing of employees. The commonly established practice in tested companies shows that owners usually determine the rewards, its level and they make assessment of the effectiveness of the management. Even though the test has shown that owners of family businesses have aversion for professionalization of the management they feel reluctant in hiring external experts and consultants from time to time.Based on the results of the scorecard we can conclude that in family businesses there is no formally established board of directors and that there is no clear distinction between operational and strategic/supervisory roles. Supervision, control and independent audit operations In this area the questions concern internal controls, internal audit function, external audit and reporting mechanisms in the company. Seeking to determine whether the company has any kind of internal supervision system in place, the scorecard focuses on functions rather than on formal bodies. It tries to gauge comprehensiveness, sophistication and effectiveness of the existing system. The area has a 25% weight in the final grade.Two groups of questions focus on the system of internal controls – Has the company formalized its procedures? If yes, who is in charge of development of such a system? Have the owners formally discussed risks and have they analyzed the existing procedures and the company’s modus operandi in light of the identified risks? How does the company ensure that it is compliant with relevant laws and regulations? The next two groups of questions relate to the internal audit function – Does it exist in any form? Is it formalized? What kind of resources does it have at its disposal? Is it independent from the management? The third group of questions relates to the external audit and tries to capture the company’s experience with external auditors in the ast couple of years – Does the company have an external auditor? Who is the external auditor of the company? Has the external auditor ever issued a qualified opinion? The last question relates to the supervisory level of the company (the board if it exists or the owner(s)) and seeks to define to what extent and in which way the management communicates with the company’s supervisory bodies. [pic] Graph 3: Supervision, control and independent audit operations. In the tested companies, internal controls are either altogether absent or they have been introduced in response to customers’ or regulatory demands without any prior analysis of internal risks in the company.The tested companies that operate in regulated industries (food production, medical supplies, transportation) and that are export-oriented received relatively higher scores since there is a large number of international industrial standards in these industries/markets that allow companies to adopt these standards routinely rather than to develop independently in-house internal control systems. Although these standards represent a type of internal control system, an internal control system should not be reduced to their implementation. In order for an internal control system to fulfill its purpose, it must be implemented in an adequate control environment and be based on a company-specific and comprehensive risk analysis and assessment. None of the tested companies has any form of internal audit function and the entire supervision is performed by the owner personally and, sometimes , the employed members of the family.This monitoring style lacks a structured approach and a supporting system. Supervision is performed either continuously, which is extremely cumbersome keeping in mind operational responsibilities of the owner, or on an ad hoc basis. Often, the owner does not have sufficient technical knowledge to supervise all the business processes in the company and as a consequence he focuses on the business areas where he feels comfortable resulting in considerable supervisory â€Å"blind spots†. Supervision further suffers as the business expands since at certain point in time, the owner’s physical capacity becomes limitation for an effective supervision. Finally, since the owner often operationally anages the company, he effectively supervises himself which is far from good practice. The external audit function seems to be understood inadequately. The companies still perceive external audit primarily as an expense so the function is introduced only if it is legally required. It often happens that the owner does not have any direct communication with the external auditor. The contact person for the external auditor is, in the majority of cases, the head of accounting (whose work is verified by the auditor). Where the function exists, the auditors, as a rule, are small, local businesses that issue unqualified opinions. Their mandates are automatically extended for the period of 3 – 4 years.Transparency and disclosure Although a great majority of family businesses in Serbia are small and medium non–listed companies, some of them are rather big and require a solid organizational structure, some have extensive international business operations, and others seek significant external funding (from banks primarily but also from individual investors and private equity funds). Due to these considerations, the scorecard has a part that relates to transparency and disclosure. However, since the scorecard primarily focus es on non-listed companies, this CG area has relatively smaller significance and it contributes only 10% to the final grade.In this domain the scorecard seeks to determine whether the company has a reporting policy (formalized or not), whether it uses its website for publishing relevant information and, finally, whether all relevant information is also released in English (which allows a company to reach a far broader investor and/or client base). After this, the scorecard focuses on specific types of information which practice indicates to be of greatest interest to stakeholders. Thus it seeks to determine whether the company releases in timely manner: (i) its financial statements, (ii) its management report, (iii) materially significant information, (iv) biographical information of all members of management i. e. family members that are involved in business, and (v) related party transactions. [pic] Graph 4: Transparency and disclosure.The poor results presented in chart 4 are not surprising since, as already mentioned, the tested companies are mostly small and medium family businesses. In addition, there are no legal requirements for non-listed businesses regarding transparent business operations. Thus, the research confirms once again the assumption that companies in Serbia, as a rule, tend to fulfill only the legally prescribed minimum. Some companies have decently informative websites but they contain only marketing information relevant for customers. The companies that export have also websites in foreign languages. No single company in the tested group has a structured approach to information disclosure. Some of the tested companies do have monthly or quarterly bulletins that are distributed to their customers.Financial statements, as a rule, are not public and if some financial information is available on the company website, it is out of date. Only one company in the tested sample regularly prepares an annual report because it participates in interna tional tenders and this exercise helps it present its business efficiently to a more sophisticated business community. A majority of the interviewed owners stated that they would like to keep their business within the family and that they did not plan an IPO. Finally, most of the tested businesses engage in related party transactions but, as expected, these transactions are not regulated neither are they transparent.The research indicates that Serbian companies are still not adequately motivated to publish information and still continue to misunderstand the importance of transparency in business. Owners The last CG area of the scorecard deals with owners. This part of the scorecard focuses on key issues of family governance and has a 20% weight in the final grade. The scorecard tries to determine if there is any formal document which spells out family business guiding principles such as â€Å"family protocol†, â€Å"family business rules† etc. Formally establishing the se rules could result in the most important piece of work achieved by the family business in managing its family component and the process of succession. The econd group of questions tries to determine quality, effectiveness and timing of communication between family members that are actively involved in the business ant those members that pursue other interests and thus are not familiar with the day-to-day state of the family business. The purpose of this communication is to provide a forum that allows all the family to learn more about the family business and to provide them with an opportunity to express their views on family issues that impact the business as well as business issues that impact the family. The third group of questions enquires about the family grooming plan. The grooming plan outlines the most important business skills required by successors to effectively manage the family business at the transition date. The scorecard tries to determine how the family prepares the next generation for management succession and if it has a formalized grooming plan.The fourth group of questions asks if the family has developed an employment policy for family members. It’s understandable that the senior generation would like to have all their children involved in the family business. However, allowing children a safe employment haven just because they have no better alternative, can cause major problems. Thus, having criteria that outline what is required and expected from the family members who wish to be employed in the family business is crucial. The fifth and sixth groups of questions try to determine if the family members have any formal form of communication which would allow them to manage the key family component separately from managing business operations.The purpose of this forum is to lay out agreed ground rules and objectives for the firm and to discuss major issues (like succession) while minimizing the threat that conflicts in the famil y could jeopardize the business. [pic] Graph 5: Owners. The tested companies scored the highest in this CG area. The primary reason for such a good result is great commitment of the first generation to prepare the second generation for the future transition. Although only one of the interviewed owners is familiar with basic CG mechanisms that family businesses have at disposal for managing ownership and management succession, all of them expressed great readiness to learn and to apply these mechanisms in their businesses.In fact, all the interviewed owners have been trying to find ways to manage these challenges and all of them expressed a great concern regarding succession process in their businesses. Now, there might be some research bias since the tested businesses volunteered to engage in the CG testing and all were attending a workshop on CG organized by CCIS. It is probably true that a random sample would yield lower scores in this CG area as it would in Commitment to good CG practices. Still, we believe that a succession threat is looming over the first generation of Serbian entrepreneurs and that all of them are experiencing problems due to a lack of the entrepreneurial tradition in Serbia and a lack of CG knowledge.None of the businesses had any form of family protocol neither did they have any formal for gathering family members involved in business to discuss family issues that affect the business and to prevent conflicts. Further none of the businesses had a formal channel of communication between the family members involved in business and those that are not but they all claim that communication is regular and intensive. The grooming plan is, as a rule, somehow implemented in practice but it is not formal neither does it lay out ground rules for the second generation aspiring to join the family business. Finally, no formal family employment policy exists in any firm but there are certain guiding principals that are clear to both family and non-fam ily employees alike in almost all businesses.We can conclude that the research has indicated (i) a great need for raising awareness among Serbian first generation entrepreneurs on CG issues and mechanisms; (ii) an avoidance of the first generation to formalize the ground rules assuming that this formalization would lead to family conflicts and that it might destabilize both the family and the business; (iii) a fear that the upcoming ownership and management succession will not be performed smoothly and successfully; and (iv) an honest commitment of the family businesses to implement good CG mechanisms if it would help them overcome governance obstacles. CONCLUSION Serbia has a relatively short entrepreneurial history. Serious attempts to establish a family business could be linked primarily to the post-Milosevic period, i. e. after 2000. This research is providing a scan showing where the first generations of Serbian entrepreneurs, i. e. the first generation of owners of Serbian fam ily businesses is today from the governance point of view and what kind of family governance challenges they face. As it was already mentioned, there is a certain bias which should be taken into account when interpreting the scores of the tested businesses.All of the tested businesses attended a workshop organized by CCIS for family businesses, they were present when the scorecard was launched and they applied to participate in a pilot CG testing voluntarily. This indicates that these businesses will most likely show greater commitment to CG and a deeper understanding of the family governance issues relatively to an average family-owned firm in Serbia. This also explains relatively higher scores in the CG areas Commitment to good CG practices and Owners. Still, we believe that the results obtained from this pilot testing are a good approximation of general state of affairs in Serbian family-owned businesses.Specifically, most of the family businesses in Serbia will sooner rather tha n later face serious succession challenges. Most of them still avoid putting these issues formally on the agenda, but there are triggers that will or have already forced them to do so. These triggers might be results of some positive or some negative circumstances. â€Å"Positive† triggers include: age and retirement plans of the first generation owners and/or CEO; a boom in the economy or the firm’s industrial sector which could lead to a rapid expansion of business; an external take-over initiative coming from a strategic partner; a need for a significant external funding to finance the rapidly growing business etc.On the other hand, typical â€Å"negative† triggers would be: health problems and physical and/or physiological exhaustion of the first generation owner/CEO; marriage problems of the first generation owners or their children; financial problems; a significant loss of the market share; conflicts among the owners and/or their heirs etc. The testing co nfirmed that the interviewed owners had serious doubts that the management and ownership succession could occur smoothly i. e. without seriously destabilizing the family business. What are obstacles that prevent the Serbian family owners from tackling the succession challenges more successfully? According to the testing and the interviews, there are three major challenges that need to be resolved. First, there is a substantial lack of CG knowledge among owners of family businesses in Serbia.CG is usually perceived as an expensive exercise created primarily for listed companies. Most of the interviewed owners were not aware that a significant body of research in CG refers to family businesses only. Second, tackling succession presses some emotional and financial concerns of the first generation. Often, the founder of the firm, who belongs to the first generation, has invested emotionally a lot in the family firm. He feels that the family firm is a great part of his life and his legac y for the generations to come. From the financial point of view, the greatest assets of the founder(s) have, as a rule, been invested in the family business and they are quite illiquid.Lacking any reasonable diversification, the founder is exposed to a serious financial risk. Without a clear exit strategy and a meaningful succession plan, the founder creates a void in the governance and ownership systems which present a great burden for the heirs. The results have also shown that most of the interviewed owners lack time, capacity and knowledge to successfully resolve these issues. Relatively higher scores in the CG area that relates to Supervision and control mechanisms could be explained by an obvious need to professionalize the firm and to decentralize the management. Most of the businesses are economically healthy and have had a rapid expansion of business that outgrew its respective organizational structure.The owners show the greatest readiness to implement practical supervisio n CG mechanisms since they expect that these mechanisms would increase effectiveness of their control over the business and the â€Å"outside† managers and thus reduce a burden which they barely handle. However, we have to emphasize that better supervision, although of a great value, cannot substitute for unresolved succession issues. Poor management and ownership succession would almost certainly lead to a collapse of the family business in the next generation despite good internal controls, internal audit function or any other form of internal and/or external supervision. Low scores in the CG area that relates to Board indicate that most of the businesses have not separated the supervisory and strategic level on one hand and the operational level on the other.This leads to a common situation that even in rather big family-owned businesses in Serbia that employ more than 1000 employees, we still have so-called one-man show and the key man risk. This risk scatters away invest ors and leaves these businesses without substantial external funding. It is rather common that many rapidly developing Serbian businesses finance their investments form short-term lending since banks refuse to carry governance risks over an extended period of time. This lack of good professionals at the helm of their companies, most of the interviewed owners explain with a lack of qualified managers to whom they could entrust the family business.Finally, the lowest score in transparency area is somewhat expected. As already mentioned, these businesses are not listed and there are no legal rules that would insist on greater transparency for bigger, closed companies. While this is understandable, it also indicates that the Serbian businesses do not see any value in transparency per se which begs further investigation. Our assumption is that in very non-transparent, public and private sectors in Serbia too much of transparency is perceived as an unnecessary exposure to both the governm ent tax authorities and competitors. The businesses are convinced that transparency would only lead to vulnerability without bringing any other value-added.Scorecard results imply that in family businesses in Serbia CG is on a low level, that there is a huge space for improvements and even quick wins which can significantly contribute to the business operational functioning as well as contribute to its overall performance. The authors will continue to further employ the scorecard and assess the CG level in family businesses as to create a solid basis for scientific conclusions in the area, but as well to see whether improvements through time will be made. LITERATURE Black, B. (2001) The corporate governance behavior and market value of Russian firms. Emerging Markets Review, 2, p. 89–108. Black, B. , Jang, H. and Kim, W. (2006) Does corporate governance predict firms’ market values? Evidence from Korea.Journal of Law, Economics, and Organization, 22, p. 366–413. Bassen, A. (2004) The importance of good corporate governance by institutional investors: The Scorecard for German Corporate Governance. International Journal of Disclosure and Governance, 2(3), p. 244-263. Gheung, Y. , Stouraitis, A. and Weiqiang, T. (2010) Does the Quality of Corporate Governance Affect Firm Valuation and Risk? Evidence from a Corporate Governance Scorecard in Hong Kong. International Review of Finance. 10(4), p. 403-432. Davis P. S. and Harveston P. D. (1998) The Influence of Family on the Family Business Succession Process: A Multi-Generational Perspective, Family Business Review, 22. Goksen, N. and Oktem, O. 2009) Countervailing institutional forces: corporate governance in Turkish family business groups. Journal of Management and Governance. 13, p. 193-213. Grassi Jr S. V. and Giarmarco J. H. (2008) Practical Succession Planning for the Family Owned Business, Journal of Practical Estate Planning, 10(1), p. 27-60. Ibrahim A. and Dumas C. (2001) Strategie decis ion making in small family flrms: an empirical investigation, Journal of small business strategy, 12(l), p. 1-11. International Finance Corporation (2008) IFC Family Business Handbook, Belgrade. Durnev, A. and Kim, E. (2005) To steal or not to steal: Firm attributes, legal environment, and valuation. Journal of Finance, 60, p. 461-1493. Gary, U. and Gonzalez, M. (2008) Corporate governance and firm value: The case of Venezuela. Corporate Governance: An International Review, 16, p. 194–209. Khanchel El Mehdi, I. (2007) Empirical evidence on corporate governance and corporate performance in Tunesia. Corporate Governance:An International Review, 15, p. 1429–1441. KPMG Enterprise (2011) Family Business Succession, Managing All-Important Family Component, Canada. Kuratko D. K. and Hodgetts R. M. (2004) Entrepreneurship: Theory, Process & Practice, 6th Edition, United States, Thomson Publishing. Network for Family Enterprise (2008) www. fbn-i. org/fbn/main. nsf/doclu/facts.N eubauer Fred and Alden G. Lank (1998) The Family Business: its Governance for Sustainability, New York, Routledge. Poutziouris Panikkos Zata, (2001), Venture capital and small and medium-sized family companies: an analysis from the demand perspective, Family Business Review, 14(3), p. 277-291. Renders, A. , Gaeremynck, A. and Sercu, P. (2010) Corporate-Governance Ratings and Company Performance: A Cross-European Study. Corporate Governance: An International Review, 18(2), p. 87-106. Strenger, C. (2004) The Corporate Governance Scorecard: a tool for the implementation of corporate governance. Corporate Governance: An International Review, 12(1), p. 11-15.

The common law and equity Case Study Example | Topics and Well Written Essays - 3500 words

The common law and equity - Case Study Example Equity's impact remains as strong as ever and traces down its foundation to Norman Conquest. Equity to the layman means fairness and justice, but in the legal context its meaning is much more strictly defined. There are rules of equity which must be obeyed. Like any common law, its development may appear equally inflexible and rigid1. Its rights gave foundation to many modern laws and the remedies are daily used by the legal practitioner of the 1990s. Therefore, it plays a substantial role in (British) English legal system. It is a historical creation with modern usage. It is not a pre-conceived theory rather equity is delineated by a series of historical events.2. In the medieval period the chancellor was the most important person in the country next to the king himself. By varying existing writs or inventing new ones, the chancellor could have some influence on the development of the law. Slapper, G. and D. Kelly (2006) said that the common law system develops whereby a civil dispute had to be brought before the appropriate Royal Court by a writ. A claimant could only sue at common law, if only his complaint came within the scope of an existing writ. In the thirteen century, available writs covered very narrow ground. Even if the claim came within the scope of an existing writ, but only due to some reason, such as the power and influence of the defendant, the opponent could not get justice before a common law court. Latter the petition was used to obtain relief where the common law was inflexible and incapable of providing a remedy. Hanbury & Martin (2005) argued that the common law developed into a comprehensive system, but a litigant could only sue at common law if his complaint came within the scope of an existing writ. However, the systems quickly became rigid because judges, feared a flood of actions as a result of the popularity of the royal justice, which stopped issuing new forms of action. As a result, this attitude proved to be a major obstacle to the development of new rules and principles. By thirteen century, hurt litigants filed a petition to the chancellor, to find a more justified solution to their problem. Chancellor was trying to give relief in tough cases, and the medieval chancellor was peculiarly well fitted for this work. If the petition was successful, the chancellor's conclusion would usually be different from that of common law court. Otherwise the matter would have been litigant at common law court. As a consequence, the growth of these petitions rose. The decisions were made on the basis of fairness and reason and so the notion of 'equity' was founded. The common law tradition grew in to the ELS3 through a long process of rationalization of traditions, customs and local practices, during medieval time. The Anglo-Saxon customs were there before the Norman Conquest, but afterwards were joined with Royal Justice in a consolidation of 'local laws' and a vast body of judicial decisions have been built up which resulted in the forms of the present laws. The common law has developed by the judges during and after this century. Customs have a strong influence, which seemed ceased, in forming the new laws. When equity originally developed, gave a gloss to the common

Human Resources Planning and Development (Hilton Hotels) Essay

Human Resources Planning and Development (Hilton Hotels) - Essay Example Therefore there are no catering facilities hence no staff to man such services except for breakfast. The reason behind this thinking is that their customers comprise of tourist families who are more into adventuring and exploring the surrounding areas and less likely to use the hotel facilities. 3 As a result the HR practice at Travelodge is restricted to hiring staff without much fuss and at the lowest rate possible. There is no room for incentives and rewards for better performance. Consequently training is not considered a priority for improving staff performance. Since Travelodge is a budget hotel, the management feels that it will always get newcomers to join it more easily. Recruitment means that the selection process of employees has to be well defined according to requirement for the job. Training of the employees, both newcomers and existing ones, is a continuous exercise that must be undertaken to sharpen the performance levels of the staff. The most difficult part is retention of staff. For this it is suggested that the employees be rewarded. However, the level of performance of employees is not just a result of their skills but also the result of motivation each person exhibits. There are two sources of motivation, intrinsic and extrinsic. Since it is not always possible to have external rewards all the time for all activities the management has to promote intrinsic motivation that is the outcome of internal factors like self satisfaction or the pleasure of satisfactory performance (Hagedoorn and Van Yperen 2003). The intrinsic motivation is also preferable as in this environment the employee develops affinity with the organisation and considers the welfare of the organisation to be his wellbeing. This improves his productivity and performance since it will go along with his personal satisfaction. Such employees are also loyal to the company’s cause. In contrast the employee who looks for

Basing Sentencing on Retributivist Principles is the Most Effective Essay

Basing Sentencing on Retributivist Principles is the Most Effective Means of Producing a Less Punitive Range of Outcomes - Essay Example Retributive principle has had both supporters and critics. Many believe that retributive justice is the way to go as it brings justice to the victim and punishes the offender. But its critics argue that it is based on negative emotions such as revenge and does not contribute positively. It is backward looking and not forward looking. This debate has been on for a long time and many scholars and researchers have tried to address this issue. One of the main arguments supporting retributive justice is that it helps in reducing similar offences and injustices in the future. This essay revolves around this idea. The author of this essay believes that basing sentencing on retributive principles is the most effective means of producing a less punitive range of outcomes. This essay is aimed at justifying this ideology. In order to effectively justify the above, it is first necessary to understand retributive justice. And then the author argues why it is an effective means of producing less p unitive range of outcomes. Retributive Justice Retributive Justice is based on a simple concept that the wrongdoers or criminals must be punished and the punishment should be proportional to the damage caused. In simple words, people must get what they deserve. This means that a labour who works hard deserves to be rewarded while those who break the rules deserve punishment. Also everybody has a choice in the way they treat others. Hence, people only deserve to be treated the way they choose to treat others. It is on these simple ideas that the retributive principles are based2. The simplicity of the idea behind retributive principles is what has lead to the confusion over retributive justice and has attracted criticism. The basic requirement of retributive justice is that punishment is proportional to the crime and cases that are similar must be treated in the same way. Wrongdoers inflict harm and cause damage and hence the punishment and blame that they deserve must be in direct p roportion to the damage and harm caused3. Criticism of Retributive Justice Retributive principles have been criticised by many. One of the main criticisms of retributive justice is that it is backward looking. The retributivist theory does not look into the future but is only concerned about the crime committed in the past. Punishment is only looked from the perspective of a victim or the aggrieved party. Punishment according to retributive principles is a response to the crime and not a way to bring about social good (to the offender or the society). Critics of retributive principles take utilitarian views to support their argument. Utilitarian justice is forward looking and punishment is looked at as a tool to bring in social benefits. The severity of the punishment is not proportional to the crime but is with a purpose to reduce such crimes or offences4. Failure to take various factors such as social, economical, etc into account during imposing a penalty is another argument that critics use against retributive principles. That is if an offender is awarded with a penalty only based on the factor that it is proportional to the crime committed, then it might not be an effective one. For example, if a millionaire and an unemployed offender are both awarded the same penalty or fine based on the crime committed, then it might create an unjust situation. For the unemployed offend

Roadkill Essay Example | Topics and Well Written Essays - 250 words

Roadkill - Essay Example Also, those places which are set reserved for tourism get bad scenic impact when tourists see dead animals on roads. There are two very important mitigation measures that must be taken to prevent road kill. One is bringing positive change to vehicle owner’s behavior, and second is changing animal behavior. Vehicle owner’s behavior can be changed by informing drivers about the consequences of road kill and spreading awareness in the society through seminars and media. Such places should be supported with road signs, proper signals and speed bumps where wildlife loiters on roads frequently. Roads may be colored so light that animals are more visible, and may also be protected with fences. Animal behavior can be changed by discouraging them to loiter on roads which can be done by removing their food resources from nearby the roads. There should be guards standing on frequent intervals on roads to move wandering animals

Factors affecting buyer and supllier relationship Dissertation

Factors affecting buyer and supllier relationship - Dissertation Example Both pÐ °rties' environments mÐ °y influence the importer's perceptions of the exporter's opportunistic behÐ °vior, but for different reÐ °sons Ð °nd in different wÐ °ys. For instÐ °nce, importers fÐ °cing volÐ °tile mÐ °rket conditions Ð °re more likely to expect, due to their own biÐ °ses, thÐ °t their supply pÐ °rtners will behÐ °ve opportunisticÐ °lly. VolÐ °tility in the overseÐ °s supply mÐ °rket environment mÐ °y Ð °lso Ð °ffect the importer's perception of pÐ °rtner opportunism, becÐ °use volÐ °tility poses difficulties for exporters in meeting their contrÐ °ctuÐ °l obligÐ °tions. In Ð °ddition, volÐ °tility in internÐ °tionÐ °l exchÐ °nge Ð °llows negÐ °tive informÐ °tion Ð °symmetries to develop (cf. Ð nderson Ð °nd GÐ °tignon, 1986). InformÐ °tion Ð °symmetry implies thÐ °t one pÐ °rty's Ð °bility to mitigÐ °te the risk of opportunism is limited (KirmÐ °ni Ð °nd RÐ °o, 2000) Ð °nd presents numerous possibilities for overse Ð °s suppliers to shirk Ð °nd to renegotiÐ °te to their Ð °dvÐ °ntÐ °ge. In this regÐ °rd, Ð ° turbulent environment surrounding the exchÐ °nge cÐ °n be viewed Ð °s conducive to conditions thÐ °t fÐ °ci litÐ °te pÐ °rtner mÐ °lfeÐ °sÐ °nce. In short, the greÐ °ter the environmentÐ °l volÐ °tility surrounding the exporter-importer relÐ °tionship, the greÐ °ter the exporter's opportunism. 2. ContrÐ °ct detÐ °iled drÐ °fting Ð  first importÐ °nt strÐ °tegic choice thÐ °t buyers must mÐ °ke Ð °t the outset of Ð ° new purchÐ °se Ð °greement pertÐ °ins to the extent of detÐ °iled contrÐ °ct drÐ °fting. Explicit contrÐ °cts detÐ °il roles Ð °nd responsibilities to be erformed, determine outcomes to be delivered, Ð °nd specify Ð °dÐ °ptive processes for resolving unforeseeÐ °ble outcomes.

Economics Assignment Example | Topics and Well Written Essays - 1250 words

Economics - Assignment Example When firms spend less money on expansion, they are infusing fewer funds into the economy which leads to slow economic growth. Stock market crash causes job losses and this highly impacts the economy. During recession firms tend to cut operation costs by firing workers. With less money to spend consumers will not afford durable and luxury items. Hence, unemployment in the long run negatively impact the consumer durable and real estate sectors of economy since it lead to fall in prices in commercial and real estate sectors. Additionally, when investor’s money is lost as result of stock market crash, they tend to spend less. This in essence leads to low consumer spending which negatively affects the economy. Immediately following the attack on the US on 11 Sept 2001, the stock markets plunged and many observers expected a recession in the US (and possibly elsewhere). Using the AD-AS model, explain their prediction. There are reasons that led many observers to predict a recession in the US when the stock markets plunged. Stocks are pieces of ownership in a firm and thus the stock markets are indicator of shareholders’ confidence in the future earnings of these firms. Corporate earnings depend on the stability of country’s economic standing and therefore stock markets reflect how a country is economically stable. Their crash reflects a loss of confidence in the economy and if not restored it leads to recession. This due to the fact that the stock markets crash lead to a fall in aggregate demand (AD) (demand side shock) as a result of less wealth for consumers. In addition, it implies less financing for new projects, since trading of stocks is one way that firms raise funds required to expand. They also predicted a recession in US economy because declining stock markets can kick-start a rise in oil prices which would increase the cost of manufacturing and this in

Report Essay Example | Topics and Well Written Essays - 1750 words - 5

Report - Essay Example With this concern, the report intends to examine the measures that can be used for reviewing the performance of Tesco. In this regard, various performance measures relating to finance along with resource, customer satisfaction indicators and innovation along with market development will be discussed. Gross along with net profit margin and market share acts as effective financial along with resource based performance measures, through which the overall performance of the companies such as Tesco can be determined. Theoretically, the net profit margin depicts the ability of the management to control and meet the needs of indirect costs. It also reveals the suitability of businesses to perform effectively in future. In this regard, the net profit margin should be higher in order to depict a better future profitability and performance index (Needham & Dransfield, 2000). For instance, the financial performance of Tesco can be determined or measured with the assistance of certain financial statements that prepare by the company on an annual basis. It has been apparently noted that the company prepares different financial statements in order to measure the performance of the Group in a suitable manner (Tesco PLC, 2013). In this regard, it can be apparently observed that the net margin o f the company decreased substantially in the year 2013 as compared to the year 2012. This can be justified with the help of the following table. As per the above table, it can be clearly understood that the gross margin of Tesco declined in the year 2012 as compared to the year 2013 due to excessive costs incurred by the company while selling it various products or services to the worldwide customers. It is worth mentioning that the financial as well as the resource performance of the company can also be evaluated based on market share. It is obvious that a company

The Civil War Essay Example for Free

The Civil War Essay After the Civil War, the South was solidly and reliably Democratic for a full century. In large part, this was a reaction to Lincoln, who most southerners saw as a tyrant and an aggressor. Since Lincoln was the first Republican president in American history, it was guaranteed that the Republican Party would be widely unpopular in the South. In the mind of the South, the Civil War was not about slavery, but about the right of southern states to have large amounts of independence from the federal government in Washington. After the Civil War, southerners saw the Republicans as the party of â€Å"big government† or â€Å"centralized power†, who cared little for the autonomy of individual states within the union. After the Civil War, the Republican Party forced white southerners to allow newly-freed black to exercise their constitutional rights by voting, running for office, and serving in local governments. This caused further resentment for the Republican Party by southern whites. The Democratic Party, on the other hand, allowed white supremacy to return to the South after Reconstruction ended. It portrayed itself as the party of states’ rights, as opposed to the overbearing and domineering Republicans. The southern shift away from the Democratic Party was largely a result of the civil rights movement of the 1950’s and 1960’s. Many southerners saw blacks not as Americans simply demanding their constitutionally-guaranteed rights, but rather as troublemakers, perhaps backed by the communist party. As the moral clarity and the inevitably triumph of the civil rights movement became clear to increasing numbers of Americans, the federal government was forced to act. After all, the protestors were demanding nothing radical; they simply wanted the federal government to guarantee that no state could deprive a citizen of his or her civil rights. Due more to coincidence than anything else, a Democrat was President when these issues came to a head. It was Lyndon Johnson, a southern Democrat, who signed the Civil Rights Act and Voting Rights Act in the mid-1960’s. Southerners felt betrayed by these actions. To them, these acts were further examples of the federal government dictating from Washington how individual states should run their affairs. The South’s argument had little or no constitutional merit, but great emotional weight. When soldiers protected black children who were attending newly-integrated schools, for example, many southerners felt it was the Civil War all over again; the prosperous and arrogant North was enforcing its own values on the South. Due to these feelings of betrayal, vast numbers of Southerners switched to the Republican Party, and they did so rapidly. Richard Nixon was the first to exploit the â€Å"southern strategy†, using thinly-veiled racist paranoia to convince southerners that the Democratic Party had sold them out. Nixon convinced the conservative South that law and order was threatened by the Democrats’ big-government excesses, as protests and race riots raged throughout the nation. Almost overnight in political terms, this shift of allegiance took hold and Nixon achieved what had been unthinkable for a century; he was a Republican who won the presidency in large part due to southern support. This trend has held solidly for the last forty years. While southerners are no longer overtly racist, they still point to culturally conservative values, small government, and states’ rights as the reasons for their once- unimaginable shift to the Republican Party.

Reflection Paper: Socialization and Self-Identity

Reflection Paper: Socialization and Self-Identity Introduction I grew up in an average middle class family, whereby I attended a public primary school during early years of my life. Life was quite simple in primary school because almost all pupils were friendly and there were no social divisions both in class and outside. However, life was different when I went to high school, with the existence of a caste system that drew distinct boundaries between the middle class students who were well behaved and the lower class students associated with rudeness and truancy. Socialization in Relation to Self Identity According to Styker (1980), sociological approach to self identity is based on assumption of an existence of a relationship between oneself and the society, whereby the self influences the society through individual actions thus creating groups, networks and institutions. Likewise, the society influences self through shared meanings and language that enable someone to engage in social interactions and reflect upon himself/herself as an object. My primary school life was greatly shaped by society within a conducive environment that never encouraged social divisions among pupils but embraced a unified community, where everyone seemed to conform to norms and regulations of the school. This is further supported by social identity theory that emphasizes on identity as being embedded in a social group or category rather than role behavior (Turner, Hogg, Oakes, Reicher, Wetherell 1987). Life in high school was quite different from that of primary school as I had to identify with either the middle class students who conformed to school regulations or identify with the lower class students, who were truant, rude and cared less about school rules and regulations. This called for need to reflect, evaluate and plan accordingly in order to bring out my future state and achieve consciousness with respect to my own existence in school. Initially, I was torn between the two cliques of students because much as I desired to perform well in school, I also wanted to drink, smoke and do the crazy things that teenagers do. After critical self evaluation, I found myself striking a balance between the two sets of students and had two different sets of social lives. I could occasionally identify with the middle class students who were well behaved when I needed to study and equally strike a balance in being popular with the truant group, especially when I needed to smoke, drink and m isbehave. Such decision came after some crisis (Mercia 2008). According to Marcias identity status theory, ones sense of identity is largely determined by choices and commitments made in respect to personal and social traits. Focusing on adolescent development, Mercia (2008) points out that adolescent stage consists neither of identity resolution nor identity confusion, but rather the degree to which one has explored and committed to an identity in a variety of life domains from education, religion, relational choices and gender roles among others. Marcias theory of identity achievement argues that two distinct parts form an adolescents identity, namely; crisis and commitment. He defined a crisis as a time of upheaval where old values or choices are being reexamined and further argues that the end outcome of a crisis leads to a commitment made to a certain role or value. Living comfortably with the two sets of students explains the notion that there are as many different selves as there are different positions that one holds in society as well as to different groups responding to self (James 1890). This brings out my overall self that has multiple identities, with each identity being tied to aspects of the social structure (Burke 1980). When associating with the truant group of students, the only things we did and discussed were those relevant to the group such as planning how to misbehave, where to drink, smoke and do other things that were against school rules. On the other hand, identifying with disciplined group of students restricted me to discuss and do things that were relevant to identity of the group such as class assignments and group discussions. This boosted my psychological well being as well as social skills that enabled me to fit well in school society as supported by Thoits (2001), who argues that greater psychological well- being all ows individuals to actively acquire multiple role identities over time. Furthermore research has proved that making roles and accumulating role identities equally fosters greater psychological well being. Being able to identify and associate with two sets of students in high school can be attributed to identity theory. Stryker (1980) describes identity theory as a micro- sociological theory that links self attitudes or identities to the role- related behavior of individuals. It takes into account individual role relationships and identity variability, motivation and differentiation. This implies that my behavior in any of the two groups was dependant on shared responses and behavioral expectations emerging from social interactions. Exchange theory further supports my interaction with two sets of students as it views commitment as being influenced by repeated exchange agreement, which generate emotional connection among group members in the form of satisfaction (Lawler Yoon 1996). Socialization in Relation to Academic Performance Ability to identify with the disciplined set of students gave me satisfaction, both academically and psychologically as learning requires diligence and obedience, qualities that are widely associated with feminists. On the other hand, associating with truant group of students gave me the excitement and drive to enjoy my teenage life as well as performance of masculinity, which is associated with the highest social status in state schooling environment, a status that I could only achieve through identifying with truant group of students (Fine 2003 Renold 2006). I was an extrovert, popular with my peers and a high academic achiever. Friends were my most enjoyable aspect of school and I accentuated communication and relationships with friends, while maintaining good heterosexual relationships that invested more in emotional instead of physical aspects of the relationships within the two sets of friends. Research has shown that high achievement in class does not necessarily constitute classroom isolation and unpopularity, thus students identified as high achieving are equally popular. Based on this observation, it can be argued that high academic achievement is not impending the popularity of a student and the sociability of a student may indicate that strong social skills contribute to high academic achievement as was my case (Jackson, 2006). Francis, Skelton Read (2010) indicate in their research that sociability of students results to increased levels of confidence for boys and girls regardless of their social class, pointing out that high performing students are often highly aware of their high academic achievement and this achievement awareness preoccupation delineates the notion of giftedness. I was able to excel academically because I was comfortable with my perceived high academic ability and I never underestimated my achievement in relation to my peers, unlike what most girls do. Being vividly aware of my own authenticity, I managed to construct my popularity based on my intrinsic merit factors such as friendliness, sociability and kindness. I was actively engaged in class work and worked hard, completing all assignments even in challenging conditions. Furthermore, I was an enthusiastic participant in class and was always ready to execute given tasks during classes. I was in good terms with teachers and this added value to my performance of attitude. My talks and actions frequently dominated during my days in high school as I was loud, assertive and at the center of events, unlike my low achieving and less popular peers, who were more extrinsic and obsessed with factors such as good looks. I however considered myself good looking and fashionable in appearance during those days. My physical attractiveness and stylish clothing enhanced my classroom relationships and contributed greatly in bringing a balance between my popularity and academic achievement. This i s in agreement with Butler (1993) and Kehily (2006) who indicate that physical appearance facilitates and contributes to sociability, confidence and sometimes academic excellence. My performance enhancing qualities are in agreement with self categorization theory that describes how people define themselves at group level as well as at an individual level, considering group and individual identities to be different levels of self categorization and more distinct from each other as opposed to social identity theory (Hogg and Terry 2000). Employing this theory gave me an opportunity to have unlimited range of identities based on context and convenience to achieve desired objectives based on targeted achievement with any particular kind of behavior. In their contribution to social identity theories, Lucey and Reay (2002) observe that academic success and excellence cannot exist without failure, supporting the fact that some students must be marked as failures for others to be identified as successful. This explains my academic excellence and equally explains poor performance for some of my peers. Conclusion Human beings are social beings and need each other to coexist, a fact supported by the existence of social theories of identity, which explain personal, interpersonal as well as group relationships. As a teenager and a student, social theories of identity worked to my advantage as I managed to strike a balance between different categories of social groups in favor of my performance and social life. I lived well in high school because I could use social theories to manipulate situations for the sake of a peaceful and harmonious existence, while at the same time quenching my curiosity for exciting teenage experience. If well used, social theories can bring success to ones academic performance and fruitful relationships that support peaceful coexistence within a given society.

The Catcher In The Rye :: essays research papers

'If you really want to know the truth, I felt sorry for the bastard.';(54) This is just one of the colorful lines that is often repeated in J.D. Salinger's The Catcher In The Rye. When the book was first released, it was considered highly controversial for its time. Many people tried to ban the reading of the book in schools. Although The Catcher In The Rye has very colorful dialogue, and deals with crude topics, it still sells over 200,000 copies annually. This is why.   Ã‚  Ã‚  Ã‚  Ã‚  Holden Caulfield is the main character in the story. The entire story is a reflection by Holden while he is staying in a mental hospital. His story begins at a private school, called Pencey. Holden has been recently kicked out of the school for lack of effort and for poor grades. Holden dislikes everybody at the school, mainly because they are ignorant and conceded. Christmas break is coming up and Holden has to wait until then to permanently leave the school. Then one night, Holden gets into a fight with his roommate. He gets so upset that he can't stand staying there anymore. In the middle of the night, Holden packs all of his belongings and heads for his hometown, New York.   Ã‚  Ã‚  Ã‚  Ã‚  The rest of the story takes place in the city, where the reader starts to see Holden's bad habits. Holden needs a place to stay because he can't go home, yet. The reason for this is because his parents have not yet found out about their son's expulsion. So Holden decides to stay in a low-class hotel. While in the hotel, Holden decides to go down to the bar. He meets three older women and 'chews the fat'; with them for a while. They soon leave and Holden is now very lonely. On his way back up to his room, Holden meets a pimp and then buys a prostitute. Once the prostitute is in his room, Holden gets an odd feeling. The more he looks at the prostitute, the more depressed he becomes. So he tells her to leave. Soon, there is a knock on his door. It is the pimp and the prostitute. She said that Holden did not pay her enough money. Holden refuses to pay the money that the prostitute says he owes her, so the pimp roughs up Holden. It is now evident that Holden is sufferi ng extreme depression.

Tribes of India :: essays research papers

Indian Tribes : Among the 68 million citizens of India who are members of tribal groups, the Indian tribal religious concepts, terminologies, and practices are as varied as the hundreds of tribes, but members of these groups have one thing in common: they are under constant pressure from the major organized religions. Some of this pressure is intentional, as outside missionaries work among tribal groups to gain converts. Most of the pressure, however, comes from the process of integration within a national political and economic system that brings tribes into increasing contact with other groups and different, prestigious belief systems. In general, those tribes that remain geographically isolated in desert, hill, and forest regions or on islands are able to retain their traditional cultures and religions longer. Those tribes that make the transition away from hunting and gathering and toward sedentary agriculture, usually as low-status laborers, find their ancient religious forms in decay and their place filled by practices of Hinduism, Islam, Christianity, or Buddhism. One of the most studied tribal religions is that of the Santal of Orissa, Bihar, and West Bengal, one of the largest tribes in India, having a population estimated at 4.2 million. According to the 1991 census, however, only 23,645 people listed Santal as their religious belief. According to the Santal religion, the supreme deity, who ultimately controls the entire universe, is Thakurji. The weight of belief, however, falls on a court of spirits (bonga ), who handle different aspects of the world and who must be placated with prayers and offerings in order to ward off evil influences. These spirits operate at the village, household, ancestor, and subclan level, along with evil spirits that cause disease, and can inhabit village boundaries, mountains, water, tigers, and the forest. A characteristic feature of the Santal village is a sacred grove on the edge of the settlement where many spirits live and where a series of annual festivals take place. The most important spirit is Maran Buru (Great Mountain), who is invoked whenever offerings are made and who instructed the first Santals in sex and brewing of rice beer. Maran Buru's consort is the benevolent Jaher Era (Lady of the Grove). A yearly round of rituals connected with the agricultural cycle, along with life-cycle rituals for birth, marriage and burial at death, involves petitions to the spirits and offerings that include the sacrifice of animals, usually birds. Religious leaders are male specialists in medical cures who practice divination and witchcraft.

Brown versus Board of Education Essay -- Race Segregation

Imagine that your walk to school lasts longer that sixty minutes even though a school is five minutes away. When you finally get there, you enter a shack with makeshift tables and a dirt floor. You do not get paper or writing utensils and you surely do not get good books. Your teacher, who did not even finish her education, hands you a book that another school determined outdated and tossed away. But on one glorious day, May 17, 1954, a promise of change is made. The Supreme Court gave you the right to attend that school at the end of your block, a previously designated white school (Rodgers 1). The next day you and your parents wear nice clothes and walk down the street to the school to enroll for the following school year. You get there and stand proud of yourself and of your new school as you move towards the Dean’s office. You are confronted with terrifying looks of disgust from your white counterparts as they deny you admission based on the color of your skin. Un fortunately, for many African Americans, this was a reality in the years following the Brown versus Board of Education decision (Stephan 19). Although we have made considerable progress since then, our job is far from finished. When examining statistics on testing scores, the quality of schools with African Americans making the majority, on housing segregation and white flight, it quickly becomes apparent that whites and blacks have different numbers. This is due primarily to the ongoing perspective that black people are inferior to them dating back to the pre-emancipation period. Even at the fiftieth anniversary of the infamous Brown versus Board of Education decision, discrepancies between the races remain prevalent. Oliver L. Brown painstakingly wat... ...earch/reseg04/brown50.pdf>. Orfield, Gary, Daniel Iosen, Johanna Wald, and Christopher B. Swanson. â€Å"Losing our Future: How Minority Youths are being Left Behind by the Graduation Rate Crisis.† The Civil Rights Project. 25 Feb. 2004 . Rogers, Frederick A. The Black High School and Its Community. Massachusetts: Lexington Books, 1975. Stephan, Walter G., and Joe R. Feagin, eds. School Desegregation: Past, Present, and Future. New York: Plenum Press, 1980. Toppo, Greg. â€Å"Integrated Schools Still a Dream 50 Years Later.† USA Today 28 Apr. 2004. United States. Bureau of the Census. Historical Income Tables. Washington: GPO, 2001. Yamasaki, Mitch. â€Å"Using Rock ‘N’ Roll to Teach the History of Post-World War II America.† The History Teacher 29.2 (1996): 179-193.

The Effects of Advertising Media on Sales of Insurance Products: a Developing-Country Case

The effects of advertising media on sales of insurance products: a developing-country case S. A. Aduloju Department of Insurance and Actuarial Science, University of Lagos, Lagos, Nigeria A. O. Odugbesan Formerly of Department of Business Administration, University of Lagos, Lagos, Nigeria, and S. A. Oke Department of Mechanical Engineering, University of Lagos, Lagos, Nigeria Abstract Purpose – Characterized by declining goodwill and exemplified sharp drop in gross premium, the Nigerian insurance industry, in recent times, has experienced turbulent economic challenges that necessitated re-engineering of its core activities.However, advertising and sales are core activities, which are important predictors of stability and growth in the insurance industry. Consequently, the purpose of this paper is to examine the impact of advertising on sales of insurance products. Design/methodology/approach – An empirical investigation is carried out using a survey that utilizes quest ionnaires, interviews, and field observation as major research instruments. A total of 71 insurance companies in Nigeria, which represent the total operating insurance companies in Nigeria at the time of study, were surveyed.With 100 scientifically selected subjects sampled, descriptive analysis was employed to understand the relationship and the strength of such relationships. Findings – It was found that advertising had effects on sales volume and improved public image. However, the choice of advertising medium, the message, and the format are critical ingredients of a successful advertising program in the insurance industry. Research limitations/implications – The insurance industry in Nigeria was studied from a holistic viewpoint due to the need to present reliable and detailed information for decision makers.However, limitation in achieving this relates to the reluctance of respondents to release information for the study. Practical implications – The impli cation of this research is that proper control of advertisement budget vis-a` -vis the expected sales volume could be made. Thus, organizations could spend budgets more effectively on growth enhancing projects instead of excessive wastage of funds on advertisement. Originality/value – This paper seems to be the first original work that concerns the impact of advertising on sales in the Nigerian insurance industry.As such, it bridges a gap that is opened for investigations. It may be of great value to decision making seeking for control tools. Keywords Insurance, Nigeria, Advertising media, Sales management Paper type Research paper 1. Introduction Over the years, there has been tremendous decline in the goodwill of the Nigerian insurance industry as a result of poor performance in the payment of insurance claims. The sharp drop in gross premium exemplifies this problem. Randle (2003) estimated a decline of more than 89. 4 percent in the 1999/2000 comparative periods.This decl ine may have worsened as a result of the global economic crisis. There is therefore the need to advertise insurance products in order to increase sales. Unfortunately, no reliable records exist on the impact of advertising on sales of insurance products, thus suggesting its strong need. The need to examine the impacts of advertising on sales volume is further strengthened by the significant value of the total premiums generated in Africa, which originated in South Africa (84 percent) while only an insignificant value (16 percent) is partly contributed by Nigeria.Thus, with the enormous advertising expenditures, it becomes necessary to know if such expenditures justify sales volume obtainable from the advertisement efforts. Luo and Donthu (2005) identified advertising media and spending inefficiencies in generating sales, and concluded that top 100 marketers’ advertising spending in print, broadcast, and outdoor media are not efficient and could bring in 20 percent more sales. Sadly, the case relating to insurance products was not treated. Also, there is a strong need for understanding the impacts of advertising on sales volume.Furthermore, although empirical evidence in major markets of the world shares a significant relationship between advertisement and sales volume, there is no reliable data and information on the subject in developing countries such as Nigeria. The absence of this information provides a wide gap and poor understanding on the effectiveness of advertisement on sales. The purpose of the study is to investigate the impact of advertising on the sales of insurance products. Advertising ranks among the major tools of promotion in general and awareness in particular.The study investigates if there are good advertising opportunities insurance industry can make use of, and examine the various advertising media commonly used by the insurers with particular reference to Nigeria. How would the customers know that a particular product will satisf y some needs unless such is communicated to them? As a pivot of economic development, insurance certainly has a major role to play. The issue now is that the sector performance is far below expectation. An important question is why?Is there any inherent difficulty in growing and promoting this business in developing world? Very many factors have been put forward for this performance, and it should be mentioned that it is not the intention of this study to discuss them. It is important, however, to find out the effectiveness of the choice of advertising media on the sales volume of insurance organizations. A study of this nature may prove to be of immense benefit to industry managers on how to make positive impression about their business and product given the dynamic nature of our socio economic environment.Past studies reveal a fairly strong relationship between advertising investments and sales. Twedt and Knitter (1964) observed some relationships between larger investments in pri nt media and profits. Sturgess and Young (1981) identified the direct relationship between sales and advertising expenditures as more relevant to a company’s performance variables than any other test of communication effectiveness of advertising. Perreault and McCarthy (2000) admit that one of the methods of measuring advertising effects is to evaluate sales.Schultz and Wittink (1976) revealed that although some studies have reported a positive influence of primary advertising on primary demand, no conclusive empirical evidence has been brought to bear on the major premise. It is therefore the goal of the current work to bridge this important gap. The effects of advertising media JRF 10,3 The paper is sectioned into the following: introduction, methodology, data analysis, and conclusion. The introduction provides an insight into the significance of the problem and the need to bridge the knowledge gap.Section 2 presents the methodology, which provides the framework for the pre sented study. In Section 3, data analysis is presented based on the results of the survey instruments. Section 4, the final section, provides concluding remarks. 2. Methodology The aim of this research is to carry out an empirical investigation of the extent to which advertising affects sales. This is a survey research whose objectives are to find answers to the following research questions, and test the relevant hypotheses. This section presents the methodological approach adopted to gather relevant data necessary for this study. . 1 Study population, sampling design, and research instrument The Nigerian Insurance Digest, 2006 indicates that there were 96 insurance companies operating in Nigeria as at December 31, 2006. No available records confirm that new companies have been formed since, except for the issues of mergers and acquisitions that characterized the recapitalization/consolidation exercise. A total of 71 companies have since emerged from this exercise. The study populat ion embraced all the staff engaging in marketing, public relations, and advertising in these 71 insurance companies.Most of these companies are direct insurers since they deal directly with the members of the public. Reinsurance companies, though, also engage in advertising activities, were excluded from this study because their impact or contact with the members of the public is indirect. Since it would not be feasible to contact all the staff that represents the population for the study, sampling method was used, and the study was limited to Lagos state, the commercial center of Nigeria. A sample of 100 subjects selected from some insurance companies in Lagos was used.The sampling method was used to avoid bias in the selection procedure, and to achieve maximum precision for a given outlay of resources. Essentially, two research instruments were used: questionnaire and interview. For the questionnaire, 100 copies were distributed to respondents selected from various insurance compa nies in Lagos, Nigeria. In order to ensure high response ratio, the questionnaires were administered personally. To achieve this a number of contacts have been made to the management of those companies soliciting for their cooperation.Also, diligent care was exercised to avoid ambiguity in drafting the questionnaire. Personal interview was conducted with selected executives in the insurance companies (Dillion et al. , 1994). The face-to-face contact with respondents assisted in obtaining high quality data since more information is communicated between human beings communicating directly with each other than using other means. 2. 2 Method of data analysis The research proposed to use such descriptive statistics as simple percentages to compute the data obtained.For hypothesis testing, coefficient of correlation would be employed. Lucey (2002) highlights the benefits of using correlation coefficient when trying to analyze independent and dependent variables in order to understand the relationship between them. The correlation coefficient reveals the strength of such The effects of relationships. advertising media 2. 3 Restatement of research questions The research questions are as follows: RQ1. Is a company’s failure to use advertising a result of lack of good advertising opportunities?RQ2. Do the results of other promotional tools affect the use of advertising? RQ3. Is the use of advertising dependent on the measurability of its results? RQ4. Is there any relationship between advertising expenditure and sales figure? 2. 4 Research hypotheses The hypotheses stated will be used to test the relationship between sales figures and advertising figures (Asika, 2006). The statistical procedure is to state the null hypothesis (H0), which is to be followed by the alternative hypothesis (H1).While a H0 is a statement that no change has occurred from the condition specified, the H1 is a reversal of a H0. Thus, if in hypothesis testing, a H0 is rejected, then, the H1 will be accepted: H0. There is no relationship between advertising expenditure and sales figure. H1. There is a relationship between advertising expenditure and sales figure. 2. 5 Research design The research uses explorative research design in order to gain insights into the subject studied. The research design is that of descriptive survey.It is meant to assess the importance attached to advertisement by insurance organizations. Specifically, the research design would reveal availability of good advertising opportunities for insurance firms, factors affecting a firm’s decision to use advertising, relationship between advertising and company’s performance in terms of sales volume, and justification of advertising expenditure, using profit as the bottom line. 3. Data analysis In Section 2, it was mentioned that empirical investigation would be carried out on the extent to which the choice of advertising medium affects sales.The summaries of the results of the survey q uestions, and how these answer the stated research questions are presented in this Section 3. In fact, we will like to find out whether a company’s failure to use advertising is a result of lack of advertising opportunities, whether the use of advertising is dependent on the measurability of its results, and whether there is any relationship between advertising expenditure and sales figure. These results also attempt to seek support for the hypothesis stated. 3. 1 Response rate and respondents’ characteristicsA total of 100 copies of the questionnaire were distributed to respondents. The challenges of recapitalization in the insurance industry, and subsequent rearrangements including the necessary formalities made the task of getting JRF 10,3 audience difficult. A total of 84 questionnaires were collected out of which two were found unusable for the purpose of analysis. The response rate of 48 percent was thus achieved. The results were analyzed with the use of the fol lowing statistical procedures: (1) the frequency distribution of some parameters; (2) the percentages of the parameters studied; and 3) bar charts were also used for further illustration of some of the results obtained. The first five questions of the questionnaire deal with the characteristics of the respondents, specifically their bio data. These are presented in Table I. Out of the 82 respondents analyzed, 50 are males while 32 are females. The sample members were conveniently selected at random, rather than based on quota. Since 61 percent of the respondents are males and 39 percent are females, should one conclude that 61 percent of the workforce in the insurance industry is male and 39 percent female?This is an interesting possibility due to the fact that a good number of females prefer to be self-employed in order to care for their home responsibilities. From Table II, majority of the respondents are 40 years and below, an overwhelming 89 percent (i. e. 44 percent for below 3 0 years, and 45 percent for age bracket 31-40). About 11 percent of the respondents are above the age 41, while none of the respondents is over 60 years. This analysis suggests that productive and dynamic personnel marketing and public relations functions of these insurance companies.The analysis shows 43 single and 39 married persons indicating 52 and 48 percent respondents, respectively (Table III). This is a fair distribution. From Table IV, 46 of the 82 respondents possess higher national diploma and degrees, 14 respondents possess higher degrees in form of MSc/MBA, and 16 respondents possess professional qualifications. Sex Number Percentage Table I. Male 50 61 Sex distribution Female 32 39 of respondents Total 82 100 Age Number Percentage Table II. Age distribution of respondents Below 30 years 31-40 years 41-50 years 51-60 years Total 36 37 6 3 82 44 45 7 4 100Marital status Number Percentage Table III. Marital status of respondents Single Married Total 43 39 82 52 48 100 The fact that only six respondents (a mere 8 percent) possess national diploma and below shows that marketing and public relations job in the insurance industry is taken over by professionally and academically qualified personnel. From Table V, 71 respondents (which is 87 percent) have not more than ten years working experience, while those having more than 16 years working experience constitute only 4 percent. None of the respondents however, have worked more than 25 years. 3. Descriptive statistics of the sample responses In presenting the data obtained in response to section B of the questionnaire, we will use tables of percentages as well as bar charts. A cumulative of 91 percent agree that insurance is necessary for socio-economic development while a mere 4 percent disagree (Table VI). One may conclude that majority of the respondents believe that insurance has a vital role to play in an economy. Here, again, Table VII shows that 91 percent agree that the Nigerian public is apathe tic toward insurance purchase, while a mere 5 percent could not agree. A total of 69 respondents (20 ? 9) agree that the level of insurance sales in the country is not encouraging, which is 84 percent of the respondents (Table VIII). On the other hand, 10 percent of the respondents disagree. This naturally confirms the response presented in Table VII indicating that the Nigerian public is apathetic toward insurance purchase. Academic qualification Number Percentage WAEC/NECO/GCE National diploma HND/BSc MSc/MBA Professional qualification Total 3 3 46 14 16 82 4 4 56 17 19 100 Table IV. Academic qualifications of respondents The effects of advertising media Length of service Number Percentage Below 5 years -10 years 11-15 years 16-20 years 21-25 years Total 48 23 7 2 2 82 59 28 9 2 2 100 Table V. Length of service/working experience of respondents Response Number Percentage Strongly agree Agree Undecided Strongly disagree Total 37 38 4 3 82 45 46 5 4 100 Table VI. Insurance necessary for socio-economic development JRF 10,3 About 49 percent believe that insurance performance follows the fortunes of the other sectors while 27 percent disagree (Table IX). The interesting thing is that 24 percent could not state whether or not the insurance industry performance depends on the performance of the other sectors.Here, respondents were allowed to choose more than one factor they considered as responsible for the low sales of insurance products. In order of frequency, low level of awareness, poor industry image, high level of illiteracy, and low per capital income top the list with 73, 57, 45, and 45 percent, respectively (Table X). These factors are represented on the bar chart (Figure 1). About 67 percent of the respondents agree that the principles involved in marketing tangible products apply with equal force to marketing intangible products such as Response Number Percentage Table VII. Whether public is pathetic toward insurance Strongly agree Agree Undecided Strong ly disagree Total 12 63 3 1 82 14 77 4 1 100 Response Number Percentage Table VIII. Level of insurance sales in Nigeria not encouraging Strongly agree Agree Undecided Disagree Total 20 49 5 8 82 24 60 6 10 100 Reponses Number Percentage Table IX. Performance of insurance Strongly agree Agree Undecided 7 33 20 9 40 24 industry dependent on the performance of other sectors Disagree Strongly disagree Total 17 5 82 21 6 100 Factor Number Percentage Low per capital income Low level of awareness 37 60 45 73 Table X. Factors responsible for ow sales of insurance High level of illiteracy Religious beliefs Poor industry image Availability of substitute 37 23 47 4 45 28 57 5 100 90 80 70 60 50 40 30 20 10 Poor image Substitute insurance while 33 percent disagree (Table XI). One may assert that while marketing principles are universal, their application to categories of products varies. All the respondents confirm that their companies have marketing or public relations department (Table XII). This shows that the issue of marketing or public relations is given adequate attention with staff assigned specific responsibilities.An overwhelming 93 percent of the respondents agree that their companies engage in one form of advertising or the other (Table XIII). It shows that companies could no longer be content with the provision of goods and services alone, they also see the need to inform the general public of their existence and the benefits they offer to the society. From Table XIII already discussed above, six respondents confirm that their companies do not engage in any form of advertising. In response question 9 on the questionnaire asking for the reasons, they pointed to the factors shown in Table XIV.Out of the six respondents, three chose â€Å"preference for other promotional tools,† four chose â€Å"high cost of advertising,† and two chose â€Å"difficulty in measuring advertising Low income Low awareness Illiteracy Religion Response Number Percentage Yes No Total 55 27 82 67 33 100 The effects of advertising media Figure 1. Chart showing factors responsible for low sales of insurance products Table XI. Can the principles involved in marketing tangible products be applied to insurance marketing? Response Number Percentage Table XII. Does your company have Yes 82 100 marketing or public Total 82 100 relations department? Response Number PercentageTable XIII. Yes 76 93 Whether respondents’ No 6 7 companies engage in Total 82 100 advertising activities JRF 10,3 effects on sales. † Interestingly, none chose â€Å"lack of good advertising opportunities† as a reason for not advertising. This means there may be good advertising opportunities, but measuring the effect of advertising on sales is a problem. In response to the question on advertising objectives, 72 percent of the respondents chose â€Å"inform the public about the company,† 55 percent chose â€Å"increase sales,† and 52 percent chose †Å"improve company’s image† among the major objectives of advertising (Table XV).From the above analysis, increase in sales is the leading advertising objective, apart from giving information about the company. Ranking in frequency, newspapers, radio, and magazines are the most favored advertising media with 79, 59, and 49 percent, respectively (Table XVI). These and other media used are presented on the bar chart (Figure 2). The analysis above indicates that 51 percent of the respondents reveal that developing advertising activities is a joint responsibility of the company’s staff and the advertising agencies (Table XVII).About 41 percent of the respondents show that it is entirely the work of advertising agencies while only 8 percent state that it is an internal responsibility. The report shows that insurance companies in developing their advertising program actively seek for the inputs of the advertising agencies. While only 5 percent of the respondents could n ot decide, a cumulative of 83 percent agree that the success of advertising activities depends on the integration of all marketing promotional tools. While no respondents strongly disagree, 12 percent disagree (Table XVIII).The 83 percent in agreement point to the fact that there is the need for integration of all marketing communications in order to achieve good result. Response Number Percentage Table XIV. Reasons why some Preference for other promotional tools 3 50 companies do no High cost of advertising 4 67 advertising Difficulty in measuring advertising effects 2 33 Response Number Percentage Table XV. Objectives of advertising Inform the public about the company Introduce new product Increase sales Improve profitability Improve company’s image 59 33 45 34 43 72 40 55 42 52 Response Number PercentageTable XVI. Advertising media used Radio Television Outdoor advertising Newspapers Magazines Journals 48 24 29 65 40 21 59 29 35 79 49 26 The effects of advertising media Fi gure 2. Bar chart showing the preferred advertising media Radio TV Outdoor Newspapers Magazine Journals 100 10 20 30 40 50 60 70 80 90 Response Number Percentage (a) Advertising staff (b) Advertising agencies (c) Both (a) and (b) above Total 7 34 41 82 8 41 51 100 Table XVII. Those responsible for developing advertising activities Response Strongly agree Agree Undecided Disagree Total Number 23 45 4 10 82 Percentage 8 55 5 12 100 Table XVIII. Whether advertising success is dependent on the integration of all marketing promotional tools From Table XIX, an overwhelming majority of the respondents agree that the choice of advertising medium is critical to the success of advertising activities. This is indicated by the sum of 20 percent for â€Å"strongly agree† and 70 percent for â€Å"agree† respondents making 90 percent. While 6 percent could not decide, a mere 4 percent disagree. Insurers therefore will have to pay attention to the medium selection if their advertising objectives are to be met.In Table XX, the respondents neither â€Å"disagree† nor â€Å"strongly disagree† with the notion that the choice of message can make a difference between success and failure of any advertising activity. While only 1 percent of the respondents could not decide, 99 percent agree with the notion that the choice of message is critical to any successful advertising program. Again, insurers need to pay attention to the message in endeavoring to reach the public. JRF 10,3 About 96 percent of the respondents support the notion that advertising has made positive impact on their company performance (Table XXI).This needs no further elaboration. Owing to the importance of this issue, question 16 in section B was reframed again as question 17 with the aim of testing the genuineness of the respondents’ answer. Interestingly, as in Table XXI (which analyzed responses to question 16), 96 percent of the respondents affirm that advertising has had posi tive effects on their company’s performance (Table XXII). Specifically, 73 percent of the respondents agree that advertising leads to increased sales, the figure which is marginally exceeded by 74 percent for â€Å"favorable public image† (Table XXIII).Also 61 percent of the respondents agree that advertising leads to increased number of prospects. This is presented in the bar chart shown in Figure 3. None of the respondents picked â€Å"no† for the answer, although it was included in the three options (Table XXIV). While 76 percent of the respondents believe that advertising expenditure is justified based on the results achieved, 24 percent could Response Number Percentage Table XIX. Strong agree Agree Undecided 16 57 5 20 70 6 The choice of advertising medium is critical to the success of advertising Disagree Strongly disagree Total 2 2 2 2 2 100 Response Number Percentage Table XX. The choice of message can make or mar advertising campaign Strongly agree Agre e Undecided Total 21 60 1 82 26 73 1 100 Table XXI. Whether advertising has impacted positively on company performance Response Yes No Total Number 79 3 82 Percentage 96 4 100 Response Number Percentage Table XXII. Description of advertising effects on company performance Positive effect No effect Negative effect Total 79 1 2 82 96 1 3 100 not decide. One may align with the fact that advertising expenditure, if properly done, is not a wasteful resource, after all.The fact that only 27 percent agree, and 37 percent could not decide in support of the notion shows that advertising agents have a long way to go in measuring up to international standard (Table XXV). About 36 percent (30 ? 6 percent) disagree that advertising professionals are performing at world standard. Response Number Percentage The effects of advertising media Increased number of calls received 10 Increased number of prospects visits 50 Increased number of orders received 21 Increased volume of sales 60 Increased quan tum of profits 31 Favorable public image 61 2 61 26 73 Table XXIII. 38 Specific effects of 74 advertising on companies Figure3. Bar chart showing effects of advertising 10 30 40 50 60 70 80 Calls Visits Orders Sales Profits Image Response Number Percentage Table XXIV. Yes 62 76 Going by the result, is Undecided 20 24 advertising expenditure Total 82 100 justified? Response Number Percentage Strongly agree 4 5 Agree 18 22 Table XXV. Undecided 30 37 Is performance of Disagree 25 30 advertising agencies in Strongly disagree 5 6 Nigeria is of international Total 82 100 standard? JRF 10,3 3. Analysis of research questions In Section 3, the research questions proposed in Section 1 were restated. These research questions, four in number, are analyzed as follows based on the information received from the respondents: RQ1. Is a company’s failure to use advertising a result of lack of good advertising opportunities? To answer this question, Table XIV (already analyzed somewhere above) is hereby represented in Table XXVI. In response to question 8 on the questionnaire, six out of the 82 respondents confirmed that their companies do no advertising at all.Question 9 asked for the reasons and four options were listed as follows: (1) company’s preference for other promotional tools; (2) high cost of advertising; (3) lack of good advertising opportunities; and (4) difficulty in measuring advertising effects. From Table XXVI, none of the respondents chose option (3), i. e. â€Å"lack of good advertising opportunities† as the reason for not advertising. One can therefore conclude that there are a number of advertising opportunities in the country for companies who care to advertise: RQ2. Do the results of other promotional tools affect the use of advertising?Again, this question would be answered using the response analysis presented in Table XIV. Out of the six respondents whose companies do no advertising, three stated that it was because their companies preferred the use of other promotional tools. When compared with the sample size, which is 82, the position of the three respondents is too insignificant to infer a generalization. One could thus conclude that the results of other promotional tools do not negatively affect the use of advertising: RQ3. Is the use of advertising dependent on the measurability of its result?Using Table XXVI, out of the six respondents who confirm that their companies do not advertise, two chose â€Å"difficulty in measuring advertising effects† as the reason. Again, this position of the two respondents is too insignificant when compared with that of the entire sample size of 82: RQ4. Is there any relationship between advertising expenditure and sales figure? In answering this question, the response to question 17 in the questionnaire will be used. The response as analyzed using Table XXIII (already analyzed somewhere above) is hereby represented in Table XXVII.Response Number Percentage Table XX VI. (Repeated) Reasons why Preference for other promotional tools 3 50 some companies do not High cost of advertising 4 67 advertise? Difficulty in measuring advertising effect 2 33 From this table, advertising has a number of positive effects on the organization. Among others, 74 percent of the respondents believe it has improved public image, 73 percent believe it has increased sales volume and 61 percent believe it has increased the number of prospect visits. All these show a positive relationship between advertising and sales. 3. 4 Test of hypothesisThe hypothesis to be tested is termed the H0 – a statement that no change has occurred from the position specified for a hypothesis. If however we reject the H0, the H1 will be accepted. An H1 is a statement, which is a reversal of a H0. 3. 4. 1 Restatement of the hypothesis. H0. There is no relationship between advertising expenditure and sales figure. H1. There is a relationship between advertising expenditure and sales figu re. In order to test for this hypothesis, data obtained from some insurance companies in respect of their sales figures (gross premium incomes) and their advertising expenditures for a five-year period was used. . 4. 2 Five-year figures of premium and advertising. These are shown in Table XXVIII. Our main objective is to test whether or not there is a relationship between advertising expenditure and sales volume. The statistical tool used here is Pearson’s product moment coefficient of correlation denoted by r. This coefficient gives an indication of the strength of the linear relationship between two variables. In our case, the two variables are: (1) Advertising expenditure, which is the independent variable represented by x. (2)Sales figures (gross premium income) which is the dependent variable denoted by y. Response Number Percentage The effects of advertising media Increased number of calls received 10 Increased number of prospects visits 50 Increased number of orders re ceived 21 Increased volume of sales 60 Increased quantum of profits 31 Favorable public image 61 12 61 26 Table XXVII. 73 (Repeated) Specific effects 38 of advertising on 74 companies Year Advert expenditure (N Premium income (N ?) ?) 2001 7,532,670 1,145,565,930 2002 8,980,422 1,456,227,292 2003 10,581,702 2,048,360,018 004 14,216,019 2,825,270,405 2005 16,186,851 3,485,046,944 Table XXVIII. JRF 10,3 For ease of computation, the figures for both advertising and sales (premium income) have been approximated as follows: XXXX X x ? 575; y ? 1; 096; x 2 ? 71; 369; y 2 ? 277; 194; and xy ? 139; 915: The formula for product moment correlation coefficient is: P PP n xy 2 x y r ? rffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi ? :99: P P2 * P P2 n x2 2 x ny2 2 y According to Lucey (2002), r can range from ? 1, i. e. perfect p ositive correlation where the variables change value in the same direction as each other, to 21, i. e. perfect negative correlation where y decreases linearly as x increases. Lucey states further that a strong correlation between two variables would produce an r value in excess of ? 0. 9 or 20. 9. If the value were less than, say 0. 5 there would only be a very weak relationship between the variables. The value of our computed coefficient of correlation (r) is 0. 99.This indicates a very strong positive correlation between the two variables, i. e. advertising expenditure and sales figure denoted by x and y, respectively. The decision is that we reject the H0, which states that there is no relationship between advertising expenditure and sales figure, and accept the H1, which states that there is a relationship between advertising expenditure and sales figure. 4. Conclusions This study investigates how advertising could be used by the insurers to disseminate information on the vital role they play. The study concludes that: .The image problem and the poor sales of insurance products are not necessarily the result of the bad economy but the failure to engage in marketing communications. . Emphasizing other roles of insurance as financial intermediation and supplement to government’s efforts in providing social security will make it more attractive. . Greater benefits accrue when advertising is fully integrated into the whole mass of marketing communications. . There are good opportunities for the insurers to advertise their products, advertising practitioners have not measured up to international standards. .For good advertising output, the message and format are the joint responsibility of the insurance staff and advertising agencies. . The major advertising media used by the insurers are the newspapers and the radio. The use of the internet in Nigeria should be given due attention. . The choice of advertising medium is a critical success factor in any a dvertising activity. . The major effects of advertising on companies were found to include sales volume and improved public image. A number of obstacles militate against attainment of growth in the insurance subsector, notably, hostile economic environment.Relentless advertising campaign can take a company to the next level of growth. The research has also shown that advertising expenditure is justified going by the positive effects such expenditure has on a company’s performance. Furthermore, the message and the format have also been found to be critical ingredients of a successful advertising program. It is recommended that: . The insurance executives should realize that their activities do not end with producing good services. Passing information to the public about their services and benefits thereof must be vigorously pursued through advertising. For sustainable competitive advantage there is a need for integration of all marketing communications, as this will reduce con flicts in organizations. . A careful blend of print and electronic media is very essential in order to properly serve each market segment. . Sales persons are the ones on ground since they are always in the field. Their inputs must always be sought while designing advertising message and format. . The lack of records regarding advertising budget and actual expenses is a problem in many insurance organizations.There is a need to keep adequate records of advertising expenditure, as this is necessary for proper evaluation. . The practitioners must promote other important roles of insurance such as savings, financial intermediation and provision of social security. . In the area of image laundry there can still be mutually beneficial cooperation in the midst of competition among the insurers. . In this regard, the insurance industry as a whole should embark on an industry’s advertising in order to promote subjects of common interest.This will also reduce the overall cost of adver tising. In this work, a convenience sampling method is used. While the size of the sample is fairly large (100), a major limitation is that the sample is taken in Lagos: one state out of 36. The fact that some major towns in the country (i. e. Abuja, Port Harcourt, Kano, and Ibadan) were left out could limit the degree of representativeness of the sample. However, the fact that Lagos is home to almost 90 percent of the headquarters of insurance companies in Nigeria makes the findings of this study representative of the population.Consequently, these findings would form a platform on which companies can base some of their marketing decisions. Future research could focus on the effects of publicity and public relations on sales, and on the better methods of separating advertising effects from the total marketing effects. References Asika, N. (2006), Glossary of Terms and Concepts in Research and Statistics, 1st ed. , Maxwell, Lagos, pp. 50-8. Dillion, W. R. , Madden, T. J. and Firtle, N. H. 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(2003), Chi-square Tutorial, updated by C.Ball, Georgetown University, Washington, DC. Coon ey, B. (1999), â€Å"Reuter XL capital announces web-based initiative to help manage organizational risk†, PR Newswire USA, April 12. Davidow, D. and Uttal, B. (1990), The Total Customer Service: The Ultimate Weapon, 1st ed. , Harper Collins, New York, NY. Dayton, D. (1999), Total Market Domination, 1st ed. , Adams Media Corporation, Halbrook, MA, pp. 37-41. Denny, R. (1988), Selling To Win, 1995 ed. , Kogan Page, London. Dibb, S. , Simkin, L. and Pride, W. (1991), Marketing, European ed. , Houghton Mifflin, Boston, MA.Farmer, R. N. (1987), â€Å"Would you want your grand daughter to marry a Taiwanese marketing man? †, Journal of Marketing, Vol. 51, pp. 111-6. Keith, R. (1960), â€Å"The marketing revolution†, Journal of Marketing, January, pp. 35-8. Kotler, P. and Armstrong, G. (2006), Principles of Marketing, 11th ed. , Prentice-Hall, New York, NY, pp. 428-44. Kotler, P. and Connor, R. A. 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(2000), â€Å"AdNauseam†, Advertising Age, July, pp. 16-18. Polley, R . W. (1987), â€Å"On the value of reflection in the distorted mirror†, Journal of Marketing, Vol. 27 No. 6, pp. 104-9. Prisca, S. (2004), â€Å"Developing public trust in insurance. A critical appraisal†, Journal of Chartered Insurance Institute of Nigeria, Vol. 5 No. 13, p. 17. Rejda, G. (2002), Principles of Risk Management and Insurance, 7th ed. , Pearson Education, Delhi. Rejda, G. 2003), Principles of Risk Management and Insurance, 7th ed. , Pearson Education, Singapore, p. 20. Ryan, L. (1985), â€Å"New distribution channels for microcomputer software†, Business, October/December, pp. 21-2. Wikipedia (2006), The Free Encyclopedia, available at: http://en. wikipedia. org/wiki/Advertising Corresponding author S. A. Aduloju can be contacted at: [email  protected] com To purchase reprints of this article please e-mail: [email  protected] com Or visit our web site for further details: www. emeraldinsight. com/reprints The effects of advertising media