Proposal “Violence Against Women”

Shantel Jones Professor Sara Yu Eng. 121-111 15 April 2013 â€Å"Violence Against Women† The research proposal I am preparing is going to be addressing violence against women and the challenges they face when children are involved in the household. The aim of the research is to view how these challenges are overcome and give way to women rights and their political rights (nineteenth amendment). In the early 1990’s over half a million American women were raped.In 1994 congress passed the Violence Against Women Act (VAWA), which forbids the state from interfering with women’s citizenship and political rights. Starting from domestic abuse to rape as a weapon of war, violence against women is a gross violation of their human rights. Global issues of violence against women not only does it frighten women's health and their social and economic health, violence also hinders global efforts to reduce poverty. Violence against women falls in several different categories.Do mestic violence occurs between man and women. Domestic violence is one of the main issues in most parental abduction cases. The article also talks about custody battles and how visitation should go when it comes to the children. Domestic violence has been defined in various ways in the legal, social science, and psychology fields. Within the legal field alone, the term carries a different meaning depending on whether state or federal law governs and whether a case arises in the criminal or civil sphere.According to Deborah Goelman under the Violence Against Women Act (VAWA), â€Å"domestic violence includes the following: [F]elony or misdemeanor crimes of violence committed by a current or former spouse of the victim, by a person with whom the victim shares a child in common, by a person who is cohabitating with or has cohabitated with the victim as a spouse, by a person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction rece iving grant monies, or by any other adult person against a victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction receiving grant monies. † This topic is of interest to me because as a woman studying the laws on women’s right helps you to become more knowledgeable in society. If the world does not address the issue, it stands to suppress the enormous potential of women and girls. When they feel safe, when they are empowered, women and girls can be game-changers. What I hope to gain from this research project is different ways to deal with domestic violence if I was to ever come in contact with a violent individual.

What Are Scientific Investigation and Non-scientific Investigation?

Scientific investigation and non-scientific investigation are fields of inquiry used by scholars, policy makers, health professionals and economists among others, to acquire knowledge that explains the various forms of phenomena that exist in the natural physical environment. Science is derived from a Latin word scientia which literally means knowledge. It is a discipline that deals with the systematic process of gathering knowledge about the structure and behavior of the natural and physical world, based on facts that are measurable and can be proven by manipulation of data obtained through experiments, and observation (Gaukroger, 2006). Investigation is the process of enquiring into unfamiliar or questionable activities, thoroughly and systematically with the aim getting a solution (Bauer, 1992). Scientific investigation therefore is a method used to acquire knowledge through careful observation of facts of a situation that is unfamiliar or questionable, which helps in the development of a hypothesis from which logical predictions can be proven by way of experimentation, and manipulation of empirical data (Ziman, 2000). Non-scientific investigation on the other hand is devoid of all attributes that are scientific in nature. The careful examination, with the aim of establishing reasons for the occurrence or existence of a particular phenomenon cannot be verified with reference to data gathered by means of experiments, observations, empirical evidence or any other forms regarded as scientific. Conclusions are majorly based on claims, estimations and generalized assumptions that cannot be measured or empirically determined (Proper, 1983). Steps of scientific investigation: The first step involves informal observations of phenomena or behavior in a way that is not systematic. In the process, unique behavior might get noticed within the environment under investigation. For example, it may be observed that people are generally happier in warm sunny days. As questions about events arise, generalizations are made toward the noticed behavior through a process known as inductive reasoning. (Holyoak and Morrison, 2005). This involves using a specific characteristic to make conclusions about the general situation. For example, people are happier on warm and sunny days. The second step involves the formation of a tentative answer known as a hypothesis. A hypothesis is a proposal expressing opinion based on incomplete evidence or a concept that has not yet been verified but that if true would explain a possible relationship between or among a set of phenomena (Burks, 1977). The hypotheses are normally tested using experimental studies to determine their relevance through a series of steps that are repetitive. This provides a consistent way of predicting further results related to specific situations or phenomena (Fraassen, 1980). This begins by listing variables that are associated with the observation. A variable is a condition that has different values for different items. For example, other variables associated with warm sunny days and happiness could be weather and health. There now arises two possible explanations for the observation made; that people are less likely to get colds and flu which limits depression and makes them happy, and people are happier in warm sunny days because the weather is bright and welcoming. At this point, one between the two observations is selected forming the hypothesis which is subjected to further investigation to determine whether it is true or false. Thirdly, is the use of the hypothesis to generate a prediction, which can be tested. This involves applying the hypothesis to a specific real-world situation that can be observed (Patten, 2004). At his level, logic is used to make a prediction through a process known as deductive reasoning where the prediction starts from a general statement to one that is specific (Patton, 2002). For example, if the hypothesis states that less depression is as a result of better lighting, a specific prediction is that, increasing lighting of a building on the ground floor should decrease depression among employees working on that floor. The fourth step is to evaluate the prediction by undertaking the actual research to provide a fair and unbiased result by observing if the hypothesis is correct (Bunge, 1998). Finally, observations are used to back, refute, or to refine the original. This is based on the extent to which observations agree with predictions. If they agree, new predictions can be set and tested. If not, then the hypothesis needs to be revised because it is wrong. The scientific process is a repetitive, circular, spiral process and not a linear process (Maleske, 2005). Other elements of scientific investigation All scientific investigations must be objective. They should not be influenced by personal feelings or opinions of the party carrying out the investigation but rather by facts that can be proven (Neuman, 2006). This reduces the eventuality of biased interpretations and conclusions of results from an investigation. Scientific investigations must be documented. Official records should be kept for use as evidence or proof that investigation on a particular phenomenon actually took place. This would lend credibility to the process in case any there is need for further investigation (Krippendorff, 2004). Another basic expectation is to archive all documented work resulting from scientific investigation. This involves storage of information that is not often needed into various forms of storage media like tapes, disks, paper, and slides for future reference. Data and methodology from scientific investigations must be shared to allow for careful scrutiny by other scientists. This allows other researchers the opportunity to carefully scrutinize results and also verify them by attempting to reproduce them through a practice called full disclosure (Holton, 1988). Finally, scientific investigations must allow for statistical measures of reliability of the data to be established. Non-scientific investigation Non-scientific investigation is a process of inquiry into particular phenomena existing in the natural physical environment in a manner that is not systematic. The major aspects of non-scientific investigation are qualitative in nature, in the sense that the process of inquiry is not based on facts and data that is measurable and can be empirically manipulated to arrive at conclusions but reasoned explanations, estimations, generalized assumptions and comparisons form the basis of non-scientific investigation (Salmon, 1990). Forms of non-scientific investigation Tenacity is used to acquire knowledge from habit or superstition. Repetitive and predictable events form the basis upon which knowledge is acquired. There is no actual observation and examination of variables through research. As Stanovich (2007) observes, the element of repetitiveness and predictability hold a critical place in the field of science. Intuition is another form of non-scientific investigation through which knowledge is acquired. The substance of the matter under investigation is determined by a hunch or feeling that could be emotionally motivated or not (Stanovich, 2007). Through keen observation or by reading other sources, feelings and emotions may be invoked triggering studies that end up on conclusions being made. The nature of conclusions depends on the emotional disposition of the investigator. Authority by experts is another form of non-scientific investigation (Thurs, 2007). This is simply derived from the idea that expert opinion is based on information acquired earlier through various forms. Due to the fact that individual experts are expected to offer leadership in their areas of specialization, they easily contribute information which is presumed to be knowledge. Rationalism is another form of non-scientific investigation where knowledge is acquired from reasoning and making of logical conclusions (Audi, 1999). Simply put, rationalism is based on appeal to logic. However, logic may not necessarily explain phenomena as certain information may be convincing though such may fail the knowledge test. Lastly is empiricism which relates to acquisition of knowledge from direct sensory observation (Keeton, 1962). This is heavily dependent on the five senses possessed by a human being including the sense of touch, smell, taste, sound and sight. Conclusion Scientific and non-scientific investigation offer useful skills of inquiry that can be used hand in hand. These two processes complement each other throughout the whole investigative process to bring about a more comprehensive and tangible investigation (McComas, 2002). The steps under scientific investigation are punctuated by elements of non-scientific investigation giving it substance and credibility that is necessary for the process to be complete. The following non-scientific forms of investigation roughly show the correlation that exists with the scientific forms, observation (method of empiricism), reading other researchers’ articles (method of authority) (MacMorris, 1989). For an investigation to be deemed complete and comprehensive, scientific investigation and non-scientific investigation must be used together.

Interest Rate Risk

INTEREST RATE RISKQ1. Which of the following correctly defines Basis Risk? (MCQ)A company having a variable interest rate for a specific loanA company having a fixed interest rate for all loansThe risk of the difference of interest rate amount set on assets & liabilitiesA company has a similar quantity of assets & liabilities, having a different basis for their floating rate(2 marks) This information relates to Q2 & Q3.Rotec Co wants to borrow $30,800 in two months' time ; is seeking to save them from any interest risk. The bank has explained an agreement to provide hedging for Rotec Co. This agreement can lock interest rates for future. The borrowing will be for three months. The forward rate agreement is as follows: 2 months V 3 months 3% – 4.5%2 months V 5 months 4.2% – 5.1% Q2. Calculate the interest amount to be paid if the actual rate will be 3% in two months' time? (MCQ)$161.7$231$392.7$924(2 marks) Q3. Calculate the refund amount by the bank if the actual rate will be 6.3% in two months' time? (MCQ) $46.2$92.4$138.6$161.7(2 marks) Q4. A company is looking at the following options to hedge itself from interest risks. Which of the following will support the cause? (MRQ) SmoothingMoney market agreementsMatchingDealing with home currency(2 marks) Q5. A yield curve is a relationship between yield ; maturity dates of similar bonds. Select the appropriate yield curve. (P;D)Short-term bonds have lower yield due to their risk Long-term yields have lower yield due to the downfall in the economy Short/Long – term bonds provide a close equal yield FLAT YIELD CURVE NORMAL YIELD CURVE INVERTED YIELD CURVE(2 marks) Q6. Select the appropriate theories in relation to different interest rates on different securities. (P;D)Investors needing high returns for long-term security contracts The assumption by an investor that higher interest rates are due to future inflation Security markets are separate from each other ; have distinct customers GOVERNMENT POLICY MARKET SEGMENTATION THEORY LIQUIDITY PREFERENCE THEORY EXPECTATION THEORY(2 marks) Q7. Select the appropriate option relating to the usefulness of the yield curve. (HA)Yield curve may indicate the economy position TRUE FALSEYield curve may be helpful in decision making with respect to loan ; but not interest TRUE FALSE(2 marks) Q8. Which of the following contract have long-term validity? (MCQ)Currency FuturesInterest rate OptionsInterest rate Swaps Forward rate agreements(2 marks) Q9. Select the appropriate option in relation to interest rate futures. (HA)If the need for Borrowing, Selling the futures now ; Buying them back at the close date TRUE FALSEIf the need for Deposit, Selling the futures now ; Buying them back at the close date TRUE FALSE(2 marks) Q10. Which of the following statements is correct? (MCQ)Currency futures have a range of closeout datesInterest rate options are cheaper than Forwarding rate agreementsForward rate agreements lapse if unused in the given time periodSwaps are unable to be exercised if the amount ; time periods are different(2 marks) Q11. Yakut wants to borrow money from the bank in three months' time by using a collar transaction. Which of the following statements are true in relation to the collar transaction? (MRQ) Yakut will buy a cap agreementBank will buy a cap agreementYakut will sell a flooring agreementBank will sell a flooring agreement(2 marks) Q12. Uma Co wants to deposit money into Hale Ltd, a banking institution. Hale has offered a collar transaction. Which of the following statements are correct? (MRQ) Bank will sell a cap agreementUma Co will sell a cap agreementUma Co will sell a flooring agreementBank will buy a flooring agreement(2 marks)INTEREST RATE RISK (ANSWERS)Q1. DA company having a variable interest rate for a specific loan (Floating interest rate risk)A company having a fixed interest rate for all loans (Fixed interest rate risk)The risk of the difference of interest rate amount set on assets & liabilities (Gap risk)A company has a similar quantity of assets & liabilities, having a different basis for their floating rate (Basis risk) Q2. CInterest Payment = [30,800 Ãâ€" (3% Ãâ€" 3/12)] = $231Payment Extra = [30,800 Ãâ€" ({5.1 – 3} % Ãâ€" 3/12)] = $161.7Total cost = 231 + 161.7 = $392.7 Q3. BInterest Payment = [30,800 Ãâ€" (6.3% Ãâ€" 3/12)] = $485.1Refund = [30,800 Ãâ€" ({6.3 – 5.1} % Ãâ€" 3/12)] = $92.4Total cost = 485.1 – 92.4 = $392.7 Q4.Smoothing, Maintaining a balance between fixed & floating borrowing rates (Correct)Money market agreements not exist (Incorrect)Matching, Matching assets & liabilities with same interest rates (Correct)Dealing in home currency, the technique of dealing foreign currency risk (Incorrect) Q5.Short-term bonds have lower yield due to their riskNORMAL YIELD CURVE   Long-term yields have lower yield due to the downfall in the economy INVERTED YIELD CURVE Short/Long – term bonds provide a close equal yield FLAT YIELD CURVENORMAL YIELD = Sign of economic boom INVERTED YIELD = Sign of economic recessionFLAT YIELD = Sign of transition from boom to recession or vice versa Q6.Investors needing high returns for long-term security contracts LIQUIDITY PREFERENCE THEORY The assumption by an investor that higher interest rates are due to future inflation     EXPECTATION THEORY Security markets are separate from each other & have distinct customers   MARKET SEGMENTATION THEORY The government policy of keeping interest rates high may effect in keeping short-term interest rates higher than long-term rates. Similarly, a government may also keep very low short-term interest rates. Q7.Yield curve may indicate the economy position TRUE Yield curve may be helpful in decision making with respect to loan & but not interest FALSEYield curves help in both loan & interest decision making. Q8. CAll other agreements are less than a year. Q9. If the need for Borrowing, Selling the futures now & Buying them back at the close date TRUE If the need for Deposit, Selling the futures now & Buying them back at the close date FALSEIf the need for Deposit, Buying the futures now & Sell them back at the close date Q10.Currency futures have a range of closeout dates, has specified date (False)Interest rate options are cheaper than Forwarding rate agreements, are expensive (False)Forward rate agreements lapses if unused in the given time period, have to close out at the given time (False)Swaps are unable to be exercised if the amount & time periods are different, it can only be exercised if timing & the amount are same hence (True) Q11. Yakut will buy a cap agreementYakut will sell a flooring agreementCap is an interest rate ceiling limiting the interest rate. Floor sets a lower limit of interest rates. Q12.Bank will sell a cap agreementBank will buy a flooring agreementCap is an interest rate ceiling limiting the interest rate. Floor sets a lower limit of interest rates.

Read and Review God the Economist the book Essay

Read and Review God the Economist the book - Essay Example re discussed thoroughly, along with the idea of the Christian tradition and the application of radical implications for individual Christians and for the churches. M. Douglas Meeks received his B.D. and his Ph.D. from Duke University and studied as a Fulbright Fellow at Tubingen University. Previously ranking as the dean and professor of systematic theology at Wesley Theological Seminary in Washington, DC, as well as professor of systematic theology at Eden Theological Seminary in St. Louis, Meeks is the author, co-author or editor of 16 books, one of his most praised being this one in particular – God the Economist. Meeks’ record of professional service includes membership on a variety of academic and ecclesial councils and commissions dealing with theology and economy, religion and science, liberation theology, points at issue between black and white theologies, and theological education. He is also an ordained minister in the United Methodist Church. These past and present qualities are what enabled Meeks to have such an accurate and intellectual view on two such critical subjects – God and the economy. When it comes to Christians and the church speaking about economy, or vice versa, it seems that those involved often falter at the subject. In this book, Meeks is noted for developing his doctrine of the economist God in order to show that provision for all the needs of all people is not simply an add-on to the Christian faith but is instead entirely relevant and is its very heart and soul. Meeks centers his argument on a social conception of the Trinity, each of whose persons are understood to be giving and sustaining, rather than self-sufficient and domineering. A main point that Meeks makes in this book is that we as a world – especially in the North American countries – fail to see the destitution and despair both economically and spiritually around us, while all the time trying to fix massive other problems which seem to actually not be near as

Position Paper Essay Example | Topics and Well Written Essays - 1000 words - 2

Position Paper - Essay Example Due to the importance of the learning process this position paper was created to compare and contrast the learning assessment performed by Jim Evans in 1962 and two alternate ways to assess learning of students. The position of the writer is that the traditional learning assessment performed by Mr. Evans is inadequate to determine if real learning occurred. The proposed methods to assess learning which are far superior to the techniques utilized by Mr. Evans are simulation and essays. Jim Evans performed a teaching workshop to state agencies for creating effective visuals in which the teaching objectives were outstanding. As an educator Mr. Evans taught a class in which most students seemed to be satisfied until he decided to utilize a 50 item test as the only assessment of what the students had learned during the workshop course. Some students immediately complain after not doing well on the test, some of the comments included constructive criticism such as, â€Å"the teacher continue his lesson assuming everyone had learned the concept he was teaching† (Smith & Ragan, 2005, p.104). The methods Mr. Evans utilized did not truly reflect a correct basis to determine if students actually learned the basics they must have picked up from the course. Mr. Evans was teaching a short course to a group of adults. He utilized a technique more appropriate to ensure younger students learning basic skills such as intermediate math or elementary grammar. In this type of course the teachers has to ensure specific items of knowledge are learned to ensure the student learned knowledge they need for future courses. In those types of scenarios the students are taking a course that lasts a semester typically in which they are numerous class reunions and the instructor is able to teach different segments of the material and emphasize on theories and specific applications that are easy to evaluate through a series of written tests. Mr. Evans was not

Ga Kpanlogo and Ewe.Traditional West African dance and music Research Paper

Ga Kpanlogo and Ewe.Traditional West African dance and music techniques - Research Paper Example Comparison of Ga Kpanlogo and Ewe Drumming culture Ga Kpanlogo and Ewe are more or less Ghanaian cultures and they are West African in nature. Ga Kpanlogo has its origin in the capital city of Ghana, Accra, given this is the traditional home of the Ga people whose culture is manifested here (Lewis 2002, p.5). This type of dance can be termed as the urban youth dance and drumming. In addition, it is mainly a symbol of commitment among the rapidly growing youth in the capital of Ghana. This is due to the advocacy nature of the culture while trying to shape the political vision of the post-colonial Africa (Music 2001, p.10). Ewe music and drumming, on the other hand, are a combination of musical and drumming activities of the Ewe people of Ghana, Togo and Benin. This community throughout West Africa is known for drumming and their mode is in the form of a sophistication of cross rhythms and polyrhythm borrowing some of their similarities from jazz and Afro-Caribbean music. This form of drumming embraces diversity and therefore, the drums and music are played in so many different ways depending on where the group playing it originates. The Ewe drumming culture is composed of several drums, a bell and a rattle, and this will be different from Ga Kpanlogo, which is generally composed of drums. Each group of complete Ewe drumming is composed of a master drum together with other secondary drums and an iron bell (Lewis 2002, p.8). The Ewe people do not only have a complex drumming culture but also a complex way of their living. One of their beliefs is that if one person is good at drumming and dancing, then i t is because they inherited it from an ancestor who was good at it. It is important to realize that for both the Ga Kpanlogo and the Ewe music systems, they exhibit 16 voices in their voice notations in terms of their female and male voices. It is notable that the music and drumming cultures of the two societies have some aspects in common. The two forms of drumming and music relate to the belief systems of their respective societies. For example, in the Ewe people music helps them reconnect with their ancestors as they feel the power of life. The aspect of ancestors is quite fundamental to the people of Ewe as they possess the ability to define an individual’s destiny, hence they must be pleased through music (Music 2001, p.13). Secondly, both the group music and drumming culture are aesthetic. For example, the Ewe considers powerful music as good music. This is as the force of drumming helps people remember their past victories as very important concepts. The drumming and m usic of the two communities are a significant symbol of their history as well. In the past for example, drumming helped the Ewe people achieve their freedom from their captors through the blessings from their ancestors (Burns 2006, p.24-6). According to this culture, music is a destiny manifested as a gift from the ancestors. For the two communities, music is used for and during special functions such as during war, at funerals and for rituals for the ancestors in the society. After such functions are over, other genres are put in place for continuity (Rentink 2002, p.31-8). Ga Kpanlogo, as played by the Ga ethnic group most of whom live in Accra, existed in the recreational dance and music. It has since spread as bushfire throughout the country, which began just as a mere creative dance (Agawu 1987, p.9). As opposed to the Ewe dance and music, which were influenced by Afro-Caribbean music and jazz, this form of

Leadership Research Paper Example | Topics and Well Written Essays - 2250 words

Leadership - Research Paper Example The leader faces many resistances while introducing a change in the ongoing process. But it’s his confidence and consistency that motivates him and guides him throughout his life. Leaders also have the unique capacity to foresee things which the people with non-leadership traits fail to realize. The focus of our thesis is to study the recent news articles related to leadership and learn the form of leadership those articles refer to. We have chosen Jay-Z as our leader as he is known to be equally successful in showcasing his talents of music and entrepreneurship simultaneously. Background Early life of Jay Z Born on the 4th of December 1969 at Brooklyn, he was known as Shawn Corey Carter to everyone. His childhood was spent among war & crime ridden environment of the Marcy Projects. He had the habit of writing since his childhood days. He was adventurous by nature & learnt bike riding at the tender age of four. A poetry that he revealed in Rolling Stone Magazine’s Novem ber 2007 issue says that, â€Å"I’m the king of hip-hop/Renewed like the Reebok/The key in the lock/with words so provocative/As long as I live†. He listened to Al Green, Stevie Wonder & Prince. He was a good student, good at sports & a happy-go-lucky kind of person. He always felt the need for a male in his house when his father left his mother. He was only 11 years old when this sudden change in his life totally shocked him. He lost his only mentor. To support his family he started rapping on the streets. Soon he was popular as a fledging rapper. The people who knew him started addressing him as Jazzy. He shortened this name & became known as Jay-Z. In his life, he found two people to guide him, one was a rapper named Jaz-O who taught him the tricks of the rap industry, and the other was a drug dealer. Jaz-O was experienced than him & they met for the first time in a contest to rap against each other. Jaz-O underestimated the talent of the 15year old kid & decided to sing with each other rather against each other. Its then he got impressed by the kid’s talent & decided to train him. Jaz-O advised him to practice as much as possible. Sources say that Jay-Z was found rapping in between his classes & during his lunch breaks at schools when most of the kid would involve in fights & games. Jay-Z also participated for a short time in a now forgotten group, named Original Flavor. It’s known that two of the popular rappers of present days hailed from George Washington High School & they used to be Jay-Z’s classmates. They are, Notorious B.I.G. & Busta Rhymes. (Heos 3) The onset of success Struggle & tough times were all around Jay-Z. Still he managed to make a great decision. He decided to start his own music label instead of signing other renowned labels. This strategy would surely cut the cost of middleman still it was risky enough. His friends, Kareem Burke & Damon dash helped him in the formation of Roc-a-Fella Records. (starpu lse.com) Damon dash had a childhood similar to him; he was raised by a

Commentary for IB Literature Facebook sonnet Essay

Commentary for IB Literature Facebook sonnet - Essay Example Overall, the poem evokes a keen melancholic sense of the narrator primarily due to his or her feelings of loneliness because of the lack of human warmth and the losses one suffers because of it. The author deftly deploys several literary devices such as allegory, metaphors, similes and symbolism to depict the character’s emotions and illustrate the disdainful stage of his or her mind. Rendered in sonnet structure, the poem opens with reminiscences of the narrator about the high school reunions, which now occurs over the internet through social networking sites. The author uses symbolism here to allude to the facelessness of social networking interactions by alluding to the fact that people welcome friends and lovers from the past irrespective of whether they are â€Å"kind or cruel† (Alexie, 2011, L. 3). This further suggests that people are indiscreet when they interact with others through online media, without knowing a person’s intentions are good or bad. Besides, the narrator also points to the situation that people in the modern day, dwell on unnecessary elements from the past which makes them â€Å"undervalue† the present and, therefore, they fail to mend the wrongs they do in the present. Thus, through illustrating the attitudes of the modern humans through symbolism the author demonstrates the absence of human warmth in their lives wh ich saddens the narrator. The author deploys the literary device of allegory to show that humans in the modern day have become mechanical and they eschew everything natural because of their obsession with technology such as internet and social networking. He refers to the situation where people need to â€Å"exhume, resume, and extend† their childhood, which apparently is the most innocent and natural period in every person’s life (L. 7). He further emphasizes that every stage of human life should be same or in other words, he means that it is essential for

Internet Banking Degree Assignment Example | Topics and Well Written Essays - 1000 words

Internet Banking Degree - Assignment Example The benefits can include faster learning, greater productivity, fewer errors and greater satisfaction. Consistent interfaces also benefit the industry by promoting greater acceptance of products and services. Follow real-world conventions, making information appear in a natural and logical order (Nielsen, 2002, page 1). Affordance - Provide consistent and predictable responses to user actions within the online service. Make interactions consistent, both throughout the site and with commonly used interaction metaphors used throughout the Web. For example, similar layout for user interface components is used throughout your site, similar user interface components are labelled with similar terminology, controls that look the same are designed to act the same, operating system, language, or application conventions likely to be familiar to the user have been followed, unusual user interface features or behaviors that are likely to confuse the first-time user are documented. Navigation - Providing responses to user actions is important feedback for the user. This lets them know that your site is working properly and encourages them to keep interacting. When the user receives an unexpected response, they might think something is wrong or broken. Some people might get so confused they will not be able to use your site. ContControl - Users need to feel secure when doing Internet banking. Sites need to be secure, make security measures visible and explain to users how to use sites in the most secure manner, providing appropriate warnings where necessary. Are there adequate site maps, navigation bars, menus and so on, to help users find their way around the site (Shneiderman, 1998) Are menus broad and shallow Avoid deep, narrow and hierarchical menu structures that force users to immerse themselves into the depths of the structure (Zaphiris and Mtei, 1997; Larson and Czerwinski, 1998), and thus cannot be easily navigated without practice and route memorisation. Feedback - The system should always keep users informed about what is going on, through appropriate feedback within reasonable time (Nielsen, 2002, page 1). The feedback however, must not detract from the perceived or actual security of the Web site. The system should speak the user's language, with words, phrases and concepts familiar to the user, rather than system-oriented terms. Recovery - Users often choose system functions by mistake and will need a clearly marked "emergency exit" to leave the unwanted state without having to go through an extended dialogue. Support undoes and redoes". (Nielsen, 2002, page 1). Users should not have to wonder whether different words, situations, or actions mean the same thing. Follow platform conventions" (Nielsen, 2002, page 1) - that is to say, do not just make the site internally consistent, but consistent with the majority of other sites (Nielsen, 1999). Even better than good error messages

Assignment 6 Coursework Example | Topics and Well Written Essays - 250 words

Assignment 6 - Coursework Example Thus, Americans need a good understanding of Islamic religion and culture in order to operate effectively in such regions. 2. 6- A) Guanxi refers to relationship networks supported by reciprocation known as connections. On the other hand, guanxiwang is referred to as â€Å"relationship network.† These are very important in business since they help to create a network that can help sustain a business. In other words, it helps build long term relationship or bond between the business and its targeted consumers (Ridley, 254). B) The experience of DMG tells us that connections that emanate from what is known as guanxi determine the way things work in China. The connections spell the relationships that exist but the case of Dan Mintz shows that he found a way around them to get things done. This strategy may be helpful in creating new connections especially by going over the existing relations in order to create new connections. C) The ethical issues that are likely to arise when drawing upon guanxiwang to get things done in China involve elements of truthfulness and honest when conducting business. More emphasis is put on personal relationships. However, there are some limits of using guanxiwang for a Western business committed to high ethical standards given that focus is on relationships while western cultures stress the importance of

The attitudes towards Essay Example for Free

The attitudes towards Essay Essay title: Consider, with particular reference to Far from the madding crowd, the attitudes towards relationships between men and women conveyed in these texts reveal any marked changes in attitude? Comparison Social/Historical/Cultural contexts I have read and studied the relationships between men and women in the 18th and 20th century. There are six relationships investigated, taken from two short stories and a novel; Far from the madding crowd, a novel by Thomas Hardy Tickets please, a short story by D. H Lawrence Seeing a beauty queen home, a short story by Bill Naughton. Four of the relationships involved: Bathsheba and Gaberial Oak Bathsheba and Francis Troy Bathsheba and Farmer Boldwood These relationships are taken from the novel Far from the madding crowd. Another one of the relationships involves, Maggie and Rudy This relationship was taken from the short story Seeing a beauty queen home. The last relationship involves, John Thomas and Annie Walker These were taken from the short story Tickets please. Many of the characters share a lot of similarities and differences in the way they act and influence the relationships. For instance Bathsheba, John Thomas and Rudy are shown to be quite extremely proud, confident and vain this is shown by the author and foreseen by some of the other characters. She simply observed herself as a fair product of nature in the feminine kind, Her thoughts seeming to glide into far -off though likely dramas in which men would play a part-vistas of probable triumphs-the smiles being of a phase suggesting that hearts were imagined as lost and won. Far from the madding crowd (pg 13) This shows Bathsheba as being very vain and aware of her looks. I feel that Bathsheba and john Thomas both use their attractiveness to gain what they desire, where as Rudy uses his charms more than his looks. In the relationship involving Bathsheba and Gaberial Oak, Bathsheba instantly hypnotizes Oak with her overwhelming beauty but Oak is aware of Bathshebas ability to break hearts. Bathsheba is neither physically nor sexually attracted to Oak, he feels hurt and thinks her vain. By playing with Oaks emotions Bathsheba gains the upper hand in the relationship, she also uses this strategy in the relationship between Farmer Boldwood and herself. I felt that when Bathsheba thought herself clever by playing with Oak and Boxwoods emotions as thought they were toys, she showed her self to be a cold and insensitive person. In Tickets please John Thomas does something very similar to Annie in the way that he toys with her emotions but he also uses her for his physical needs. This insensitive act leaves Annie feeling very distraught and desperately seeking revenge. The difference in these two relationships lies between the personalities of Annie and Gaberial Oak. Annie seems to be the weaker person as she needs to get her revenge and Oak although hurt moves on with his life but they both still posses feelings for John Thomas and Oak. Rudy and Farmer Boldwood are similar characters, as they used the women to improve their status. Boldwood had not noticed Bathsheba before she sent him a valentine, when he saw the look on mens faces when he enquired about her as though she was a catalogue item; he grew to like her more. I think this was because he thought all these other men obviously like and desire her but she sent her valentine to me. So, he immediately wanted her for his own. Without knowing how Boldwood would react or knowing much about his character she sent the valentine, she thought it a harmless prank but he thought it love. Rudy does the same because he felt that because Maggie was a beauty queen if he spent the night with her this would earn him that little extra respect. Although at first Maggie seems taken by this idea the joke is soon on Rudy when Maggie throws him out for being to sly and cocky. For Bathsheba it is not so easy as Boldwood soon becomes overly obsessive it is interesting to see how Bathsheba reacts to Boldwoods sudden change in character as she probably couldnt of just thrown him out like Maggie through Rudy out as the times are different and so is the class. Bathsheba had to deal with Farmer Boldwood quiet formerly; although Bathsheba has the upper hand on the relationship Boldwood has a kind of emotional control over Bathsheba because she just cannot give him a straight answer. I think she cannot give him a straight answer because he bullies her by using his possessiveness and his need to have her. If a feeling possessed him at all, it ruled him; a feeling not mastering him was entirely latent. Stagnant or rapid, it was never slow. He was always hit mortally, or he was missed Far from the madding crowd (pg 138) I felt that the relationship involving Sergeant Troy and Bathsheba was not Based on love in Troys be have but based on the spur on the moment and the fact that she had money, for if it was based on love Troy would have never left Bathsheba nor would he have said such hurtful things to her. For a man who says that does not love at all. This woman is more to me dead as she is, than ever you were, or are, or can be. If Satan had not tempted me with that face of yours, and those cursed coquetries, I should have married her Far from the madding crowd (pg 334) But, if Troy loved Annie so much wouldnt he have forgiven her for the stupid mistake that she made and married her either the next day or the same day. Instead he just left her because he was not man enough to swallow his pride. In this relationship the attraction was physical and although Bathsheba may have thought that she loved Troy deeply, the love she felt for Troy could not compare to the love that she had always felt but never expressed or thought about or even knew was there for Gaberial Oak. In my view, Bill Naughton was trying to say think about what you do before you do it and also think about the other person, dont just assume you know how the person will react. Otherwise this could be easily turned around and you could be made to look the fool. Thomas Hardy implies you should not base a relationship on transient and superficial aspects on looks. Also that people may not always fall for the person who is going to provide a stable relationship but they may fall for the person who is physically attractive who will not provide a stable relationship. For instance I think Thomas hardy chose the name Gaberial Oak as he was a true friend to Bathsheba and looked out for her like a guardian angel (the angel Gaberial) and the name Oak implies that he is solid and is strong. D. H Lawrence is trying to say that we dont choose whom we decide to fall in love with but one should not destroy a relationship because one gets cold feet. Some of the cultural and social differences between the 18th and 20th centuries reside not only in the relationships described in the three pieces of literature but also in the way they are written about. For example physical love is expressed more openly in the 20th century in Tickets please john Thomas holds Annie publicly. Also in seeing a Beauty Queen Home Rudy and Maggie are seen leaving together and this strongly suggests that they are going to have sexual relations.

Ford Upmarket Essay Example for Free

Ford Upmarket Essay History In 1989 Ford bought Jaguar for à ¯Ã‚ ¿Ã‚ ½2.5 billion as the vehicle to take Ford upmarket into the luxury car market. After three years of Ford been in charge sales had plunged and Ford was losing à ¯Ã‚ ¿Ã‚ ½1 million a day from Jaguar. Ford saved Jaguar by cutting jobs and replacing nearly all of the facilities and procedures. Now 80% of the workforce has been replaced by Kawasaki robots with are cheaper in the long term, able to work constantly and are accurate to a tenth of a millimetre. They started making cars with the aim for the cars to be the best quality and therefore more desirable. With better quality and brand sales increased and Jaguar started new models e.g. the S class and increased production and within the next few years hope to be top in the luxury car market. Ownership The owner Ford holds a larger market share which includes: Aston Martin, Jaguar, Land Rover, Lincoln, Mercury, Volvo Cars and a 25% share in Mazda. This could be good and bad for Jaguar. Ford might see Jaguar as expendable and might be willing to dissolve the company or to sell it to another of the big car companies as it has Aston Martin and Land Rover for its luxury target group or if the company is not profitable. So Jaguar needs a strong emphasis on profit. If the company was taken over there might be a divorce of ownership where control and objectives might not be achieved therefore weakening the companies position. This is where the board do not act in the interests of the shareholders and managers may try to improve their own careers or bank balances while not worrying about the companys interests. Jaguar is a self-contained business that makes all their own decisions from designing new models, their finance and producing cars through their own board of directors who are elected at Jaguars annual general meeting by their shareholders. These directors would have contact with Ford so they would know what Fords plans are for Jaguar and departments e.g. Finance would interact with Ford to update them with Jaguars current performance. Ford has incorporated Jaguar, which means they have a separate legal identity, which diminishes some of their responsibility. So if Jaguar where to go bankrupt Ford would only be responsible to pay back the money they have put into the company. Because the company has limited responsibility it is able to gain wider borrowing opportunities, this allows the business to grow easier. This also has its disadvantages this adds to the administrative costs due to the accounts need to be audited. They also have to hold annual meetings of shareholders and they must publish annual reports to the general public when requested. Because Jaguar is independent to ford it is able to make its own decisions while enjoying the additional skills e.g. parts, contacts, technology, and higher skilled staff. This was especially import in the early years when Ford bought in specialist managers reform the companies employee structure and cultures and to overturn the company into a profitable organisation. With the extra skills Ford bring this improves the quality of the cars and increases sales. With the increased skills and capital Jaguar has been able to expand and grow. Jaguar is a public limited company where shares in the company can be bought across the stock market. Because of this Jaguar has to produce an annual report and detailed reports to shareholders and potential investors therefore this means extra administrative costs. Been a public limited company makes it easier for Jaguar to raise extra funds, they can sell more shares or they can get lower interest on loans because they are seen by lenders as a lower risk investment. Suppliers also offer listed companies better credit facilities because they are considered less likely to default payments. Like BAS Ltd in Gwent, Wales that produce trim for some Jaguar models. A company like this likes to have a guaranteed regular income and a big company like Jaguar provides this. To attract Jaguar BAS Ltd are likely to offer more attractive credit facilities. Because anyone is able to buy shares in the company it is open to takeovers. If someone buys 30% of the shares they must put an offer in for the whole company. The trouble with being a public limited company for Jaguar is the stock market investors place a lot of emphasis on short-term performance rather than long-term objectives. So if Jaguar invests a lot of money in the development of a new model the short-term performance might drop but will increase dramatically in the long term. Jaguar is very beneficial to its ownership. When Ford took over Jaguar it helped it upgrade its designs and manufacturing facilities as well as new models. It also provided high-class managers to revive the company and provided suppliers, technology while still allowing Jaguar to run its company itself. Controlling design, finance, production issues though their own board. The limited liability allows Jaguar to take reasonable business risks e.g. investing in a new car model. Jaguar been a plc allows it to raise funds if needed but leaves itself to takeovers which could lead to the companys position been weakened. Been a pubic limited company places emphasis on the importance of short-term performance. Objectives Each Organisation has objectives, which must be achieved in order to fulfil the corporate aims. The purpose of these is to create a common vision, which everyone in the organisation should work towards achieving. Businesses exist to provide goods and services these have to satisfy the customers wants and needs. The objectives of a business are set to show the employees the way they need to operate. The seven main objectives for any business are: * Making a profit * Increasing market share * Surviving * Providing services to the community * Offering non-profit services (e.g. caring for the environment) * Developing staff skills * Producing a high quality products or services Making a profit is key for a business to survive and prosper it allows the business to keep its shareholders happy, it can attract better employees by offering higher wages and it can invest in better technology and therefore producing a better quality product. The failure to make a profit leads to a loss of confidence within the company. This causes a ripple effect, if a business makes a loss the employees are less secure and fear they will lose their jobs which can lead to less efficient production, the shareholders profits go down so they sell the shares which devalue the company, the suppliers are worried if they will get paid for they parts or services and they might stop providing parts for the company until they are paid and the government are worried because they will receive less tax if the company is making a loss. Though the opposite happens if the company is making a profit the employees fell safe and secure so are happy and willing to work hard the shareholders dividends increase so they are happy and making a profit will make the business seem a good investment so more people buy shares and therefore the value of the company increases. The suppliers feel secure and believe they will get paid on time for their goods and services and the government are happy because they will receive higher taxes from the company. Profit can be closely associated with increasing sales/ or market share normally companies with high sales levels or which have a large share of a particular market are best placed to make high profits. Most large international firms like to have a high market share as an objective because it enhances the image of the organisation and places the business in a strong position compared with rivals. This makes the business look like it has ambition and makes the workers feel safe if they know the company is expanding rather than reducing jobs. Most small businesses starting ups main objective is usually to survive. Survival is about continuing into the foreseeable future, the company may not be the most profitable straight away but if it still exists there is a good possibility it will in the future when the company gets better known and gets more customers. For example Microsoft didnt make a profit in their first year but they survived and within years there yearly profit was in the millions. Survival is not necessarily only for small companies sometimes large companies need to survive. Currently Royals Mails main objective is to reduce the current loses in order to survive. They where losing a million pounds a day but due to job cuts, more efficient work practices and the increase in the price of stamps they are slowly reducing the losses. Most organisations include objectives related to developing people at work in their list of objectives. Businesses now recognise many new ideas come from the workers and it is usually the workers themselves who deal directly with the customers so it is important to develop the skills of the workers so they interact better with the customers and ensuring the customer is entirely satisfied. Workers would need to be trained to use any new technology and money can be saved if current employees can be trained to use the technology rather than new workers been needed. Many companies aim to produce high quality products but not all always succeed. Providing quality means the customers are totally satisfied with the product and the companies want the customer to keep buying their product. The most expensive product is not always the best quality the key for businesses is to make the best quality product they can for their cheapest price. Quality is very important because the customer will choose which organisation to do business with on the basis of their ability to satisfy customer requirements and usually the customer choosing the best quality product. Jaguars business objectives are: * To produce a high quality product * To create a good reputation for the company * To have high satisfaction * To be profitable and to keep costs under control * To recognise environmental issues * To train employees and to keep all staff completely safe in their working environment Jaguars aim to produce a high quality product is key to their success, they try to build their reputation on this and this provides customer satisfaction so customers repeatedly buy Jaguars. Jaguar try to keep a high reputation based on providing a high quality product, for a competitive price and to provide excellent customer satisfaction through the product, dealers and customer services. Jaguar been profitable is vital for the company to be able to expand and to keep the shareholders happy. If they are making a profit they will attract more investors, which mean extra money the train staff and integrate new technology into the production process. Jaguar aim to keep costs under control so the customers pay the least amount they have to it also allows the company to maximise its profit. Jaguars aim to recognise environmental issues is a non-profit making objective but it enhance the working environment making the workers happy and it improves the companies reputation Because it is seen to be caring for the local area. Jaguars aim to train staff enables them to make decisions on behalf of the organisation. This makes them more independent workers and more efficient workers. Functional Areas A business has several resources at its disposal known collectively as factors of production. For each production process the producer will need a wider range of resources before production is possible. Factors of production can be divided into land, labour, capital and enterprise. At Jaguar the land is where the factory is located, it is also all the resources of nature. Labour is the effort by worker to carry out specified tasks. Within Jaguar there are many functional areas and labour would be used on the production line, marketing specialists, car designers etc. The capital can be either physical capital in the form of machines and at jaguar the robots and production line. Capital can also be the money usually borrowed from banks to purchase the physical capital. Enterprise is the factor that brings the other factors together to produce the goods. At Jaguar the enterprise is the shareholders of the business and the management team s initiative in bringing together the various ele ments to form a successful business. Jaguar is split into several functional areas in order to carry out its operations involving the use of factors of production to produce a high quality product. Each of Jaguars functional areas needs to work together through good communication to process resources into final outputs. For example the human resource department needs information from the production department so they know what staff training is required or if any new staff are needed. The main functional areas within Jaguar are: * Finance * Production * Research and Development * Human Resources * Marketing * Administration Each department has a director or manager who has set responsibilities, which need to be carried out for the department to meet its aim. Production Department The production manager at Jaguar is responsible for making sure the components get turned into a finished car. The manager needs to ensure work is carried out efficiently and to the highest standard possible through checks and supervision. At Jaguar the production process can be split into five sub-functions: The production and planning department, The purchasing department, The store department, The design and technical support department and the works department. The production and planning department sets targets for each cell on the production line, each cell will have pre-set values of what the standard of the product must be when it leaves if its not up to standard it will be rejected. A comparator checks the product as it leaves the cell and checks it against the pre-set value. The comparator has the power to change the inputs or the processes in the production line to ensure outputs are of the expected quality and quantity. At Jaguar the production process has been refined so there is little chance of the product not been up to standard and they have researched and use the best suppliers, all this leads to the product been of the highest standard. The purchasing department is responsible in ordering the components for the cars from the different suppliers so the production process is kept running smoothly. The store department at Jaguar is responsible for stocking all the components used in the production process and to ensure the parts are transported onto the production line when required. At Jaguar this is vital, parts need to be on the production line so the line is kept running and doesnt need to constantly stop. The design and technical support department is responsible for researching modifications to working practices, the department is responsible for estimating costs of these new processes. The works department at Jaguar is split into small cells, which are responsible for their part in the production process. The cells are responsible for the maintenance of the production line, the actual manufacturing of the car and the quality control and inspection of the product. Finance Department The Finance department can be split in four functions: Financial accounting function, Management accounting function, the cashiers department and the wages department. The financial accounting function is responsible for keeping day-to-day records and is responsible for producing the annual reports and figures for directors meetings. Accounts must be kept of all money paid to suppliers and the money paid to Jaguar from dealers from sales. The management accounting function provides managers with figures to help them make decisions about the company. For example figures showing the best place to produce the cars to maximise profit while still keeping quality high. The cashiers department at Jaguar would be responsible for all the cash transactions and other payments through bank accounts. The wages department will be responsible for supervising the payroll. Calculations involving deductions for national insurance, pensions etc would be required. Human Resources The purpose of human resources is to recruit, develop and utilise the companys personnel in the most efficient way to meet the companys aims and objectives. Basically they recruit or train staff to make sure all work is done thoroughly so aims and objectives can be made. Companies recruit staff to ensure they have a suitable number of employees with appropriate skills for all tasks to be completed. The three stages are: 1. Researching from other departments to determine the requirements of the company. 2. Getting candidates with the right skills and experience to apply. 3. Choosing the best candidate for the job. Companies will need to recruit staff when: * An existing employee leaves due to retirement or going to another company. * An employee is promoted, creating a vacancy. * An increase in workload occurs. * The company requires employees with additional skills to develop a new project or control new technology. The best companies will have the best workforce and the most efficient workforce, which are able to adapt to tasks set and any difficulties if they occur. To do this they need to attract the best staff when a vacancy arises. Most human resource departments would produce an outline of the qualities they would look for in the applicant and would help produces criteria to select the best candidate. The vacancy can be filled to ways from within the company or from the outside. There are two types of training, which are on the job training and off the job training. On the job training is the process of instructing employees at their place of work on how a particular job should be carried out. This usually watching an experienced operative carry out a task, or actually undertaking the activity and been guide t the appropriate technique. Off the job training is any form of training not immediately linked to a specific task. It may take place within the firm or away from it e.g. at local technical colleges. Remuneration is the whole package of rewards offered by an organisation to an employee. This will include additional benefits, such as a pension scheme, share options, company car etc as well as basic pay. Administration The administrative department is important because it services the work of the organisation. The department deals with enquires, communicating messages and producing documents for the workforce. At Jaguar the admin department is responsible for communicating the times of meetings to employees and they produce word-processed documents for notice boards communicating safety issues etc. Problems can happen when administrators clog the process with red tape this is where administrative work moves the organisation away from its central objectives. Within the admin department the role of information and communications technology is important. ICT is the techniques by which information is obtained, processed and disseminated. ICT is important because it provides guidance, support and co-ordination necessary for t the companies to meet its objectives. Marketing The marketing department need to identify want the company wants and then needs to get the company to produce what the customer wants. They do this by carrying out market research to find out what the customers wants, the price they are willing to pay and what the customer would like the product to be. At Jaguar they recognise people want quality cars for affordable prices and Jaguar try to do this. They allow the customer to choose the specification of the product so they get want they want and don t have to compromise. It is important for the marketing department within Jaguar to communicate effectively with the production planning department so the customers wants and needs can be tied in with the product. The other main job of the marketing department is sale this is to get the customer to want what the company produces and this is usually done through effective marketing. Jaguar does this through television advertisements, the formula one car, sponsoring events, brochures etc. Research and Development At Jaguar the research and development is used to developing new ranges and models through concept cars, which are expensive to produce, but it is cheaper to produce a prototype then see what the public think of rather than mass-producing a new model and then it didnt sell because the consumers didnt like it, it would a financial disaster. Because in the car market there are always new cars been bought out by Jaguars competitors new improved products are vital for the company to remain successful. The R D department is also used to create new operational processes. The R D department of Jaguar also gets money to do exploratory work which produces no benefits in the short time but the development of new technology or better parts can be beneficial in the future of Jaguar. How These Functional Ares Help Jaguar Meet Its Objectives Because Jaguar had a clear set out list of objectives these can be translated down to the different functional areas, this allows each functional area to be driven by the companys objectives. Jaguars clear objectives of: * Producing a high quality product * Training employees and keeping a safe working environment * To create complete satisfaction These clear objectives allow the functional areas to combine effectively and allow to company to pull together and work in a co-ordinated way. Without these clear objectives Functional areas might have different views in how the company should move forward, this leads to areas creating there own objectives and cultures and they companies overall aims dont get achieved. The use of ICT within Jaguar allows the functional areas to work effectively and they dont have to be in the same building. For example the marking department in one place can tell the production-planning department in a different place what the customer wants so this allows the customer to be completely satisfied with the product. The cells in the production process allow Jaguar to effectively meet its objective of producing a quality product because the quality of the product is been checked at every stage on the production process. Jaguars marketing department sustains Jaguars high reputation through effective and positive advertising, and through promoting things like Jaguars aim to help environmental issues. Organizational Cultures The culture of a company is the attitudes and approaches that typify the way staff carry out their tasks. The culture type of a company depends on the companies objectives and the culture of a company, because of this there are four main culture types: Power, Role, Task, Person. Power cultures are usually found in small businesses where control rests with a single person or small group of people. Emphasis is on individuals rather than group decision-making so decisions are made quickly and they are able to react to dangers or threats. Because this style is autocratic and staff can suffer from low moral. Task cultures are usually found where work is organised into teams with people moving between tasks. The objectives will be related to the task the teams are performing. Teams have input in determining how a particular job will be done. In person cultures the objectives are related to meeting the needs of the individuals who make up the organisation. Person cultures are found within co-operative organisations or charitable organisations but not profit making enterprises. Jaguar has a role culture, it is structured in a hierarchical way and the organisation is divided into a number of functions. In Jaguars culture power comes from the employees position in the organisation. The organisation gets its strength from its functions, peoples jobs, what people do at different levels is determined by job descriptions and defined communication procedures. Rules and procedures are the main source of influence and power comes from the persons position in the company. Because Jaguar have this culture there administrative function need to efficient and the company need clear objectives because red tape can effect them meeting their objectives. From Deal and Kennedys model of culture based on Risk and feedback Jaguar has a work ha rd play hard culture. Jaguars employees take few risks, all with quick feedback; the primary cultural value is to supply the customer with a quality product. Management Style Management style is the way a management role is carried out over a period of time. There are three main types of management style: Autocratic, Bureaucratic and Democratic. Autocratic managers are used to giving instructions. There is a strong emphasis on authoritarian management and communication within the company is usually one-way. The advantages with this is there are clear lines of authority and everyone within the company knows who is boss, important decisions can be made quickly and if the leader is skilled and charismatic it can produce high quality work within the business. The trouble with this style is employees can feel frustration and resentment towards the boss, the employees can become too dependent on the leader and the employees have no participation in decision making. Bureaucratic management styles rely on doing thing according to the rulebook and because of this there is little opportunity for initiative to be shown. The advantages with this style are: it can produce consistency, everyone knows where they stand and employees can feel comfortable because of the predictable. Employees can show resentment towards the management because of the lack of participation, the rulebook doesnt always have the answers and this style is useless if there are circumstances of great change. Managers at companies need to adopt the necessary management style to develop a flexible workforce. When workers are allowed to contribute to decisions they feel more valued and more of a part of the company. The managers are responsible for achieving the overall objectives and strategy of the business. Jaguar has a strong emphasis on democratic management. Production line workers are grouped into cells with a team leader. The team is given production targets to meet but then decides how it will go about meeting these targets. The team meets to discuss what is going well and what is going badly and suggest ideas for improvement. The team then has the responsibility for putting their own ideas into practice. Several factors affect the leadership of the management these are: The skills of the manager and the workforce, the time constraints of the task, the risk and the nature of the risk. Within Jaguar there is plenty of time to discuss matters and only a low chance of it going wrong, the style is therefore democratic. Jaguars approach to management makes the employees more motivated and they show greater commitment. Managers need to be flexible to allow for change in circumstances in the company. Importance and Channels of Communication at Jaguar Communication is important within a business because it allows management to plan, coordinate and control a business but this needs high quality two-way communication. For communication to be effective it needs to be communicated the best way and at the most effective time through the best channel. These factors will depend on the type of information which is needed to be passed on with Jaguar large amounts of data in accounts would be best communicated in a report but a reminder of a cell meeting might be better in a notice on a board or through face to face communication. There are many channels of communication used within Jaguar and different types of communication. The methods of communication at Jaguar are: * Downward communication * One-way communication * Two-way communication * Formal communication * Informal communication Downward communication is where information goes from the top down, from superior to subordinate. One-way communication is when information is passed on with no feedback at Jaguar this communication is used when notices are put up. Two-way communication is where information has feedback through discussion. This allows Jaguars employees to suggest improvements or changes to managers. Formal communication is where information is passed on using the companies communication channels e.g. departmental meetings, cell meetings at Jaguar. Informal communication uses the workers own channels e.g. work of mouth. The methods of communication at Jaguar are: * Corporate videos * Annual reports * Team briefings * Memos * Letters * Faxes * E-mails * Internet * Television * Brochures The methods of communication are not only to allow the workers to know what is going on in the company. It is also is important to communicate to existing and potential customers. They do this television adverts, brochures, the Jaguar website, and promotional tours and videos. Effective communication can improve motivation and lead to better decision making internally; it can also provide better links and feedback with external groups such suppliers and consumers. Because Jaguar has a strong democratic management style it is vitally important to have effective two-way communication because the views of the employees are vital for improvement and motivation. Jaguar is a large company with many layers in their employment structure, which can cause problems with communication. Poor communication can lead to poor motivation, co-ordination and control difficulties. The employees can also get confused of what is required from them and what input they have. How the production process adds value Adding value to a product simply means making it more desirable to the final customer so the customer is willing to buy more products at higher prices. To add value to a product the product needs to meet the customer requirements or inputs need to be combined to create a physical change in the product. Most businesses use one of the following methods of production * Project production * Job production * Batch production * Line production * Continuous flow production. Project production involves binging people with different skills and different resources to complete a one off project. Job production is where a company produces one or a small number of items. The company may work on several jobs at a time so it is important that they have new jobs to replace the ones that are nearly completely. Batch production is where a number of identical or similar items are produced in a set or batch. Batch production involves work being passed from one stage to another each been highly planned. The items need not be for any specific customer but are made at regular intervals in specific quantities. Continuous flow production involves producing for twenty-four hours a day, using automatic equipment in a standardised way. Continuous flow is entirely controlled by computers and humans do not touch the product. This means there are fewer labour costs and very few mistakes the production line is also quicker and more efficient. Jaguar use a line production process this is where the product goes along a production line going through the same sequence of operations. The trouble with this has been the car buyer wants there car to be different and distinctive in some way. Jaguar have recognised the customer requirements and now allow the customer to personalise there car, by allowing them to choose interior, colour and mechanical spec. Customers appreciate this and are willing to pay slightly higher for this. Nowadays the customers recognise good quality and are willing to pay extra for it. Quality Management is achieved by Jaguar by: * Quality Control- detecting and cutting out components that fall below set standards. * Quality assurance, which tries to stop faults form happening in the first place. Jaguars aim is to produce zero defects. * Total quality management is concerned with creating a quality culture. Jaguar try to get every employee to seek to delight customers. They aim to produce zero effects by ordering components from reliable suppliers who themselves have a total quality management culture. To improve quality Jaguar has introduced robots and automation into the production process. Automatics are when a machine can be set to do a particular job and robotics is an application of automatic control. The benefits of using robots are: * People can be replaced by robots in mundane jobs, where human intelligence is not required; at Jaguar this is the routine assembly work. * Robots can be used where working conditions are difficult or dangerous * Robots are used during the welding process and are accurate to a tenth to a millimetre and it takes them seconds compared to humans who make mistakes. The introduction of the robots requires large initial capital but they dont get paid wages or have days off. And are able to produce perfect work over and over again making Jaguars are of the highest possible standard. Jaguar uses CAD, CNC, CIM and CAM to improve quality and the product as a whole. CAM stands for computer aided manufacturing. It is the use of computers to support the manufacturing process. CAM controls the robots and the track, it controls the speed of the machine so they are working in the most efficient way and CAM is a driving force in line production because of its high levels of quality control. CAD stands for computer aided design and is the use of computers to assist in the production of designs and drawings for the use in the manufacturing. This allows Jaguar to test new production techniques on the computer to test them for faults and problems it is also used by the design team to view new designs rather than making models. It allows Jaguar to be more flexible and safes time. CNC is used to control machines for cutting and shaping metal. Jaguar uses this because it is more reliable than humans and improves quality and reduces waste. CIM stands for computer-integrated manufacture this is used to integrate various elements of the manufacturing process. Design is a key aspect of adding value; a well-designed product will stand out from rivals and win customer loyalty. Good design can offer functionality, style and visual impact. This is why Jaguars R D department and design and technical support department have large budgets and spend long periods of time perfecting the design so it stands out and adds value.

Underpricing in Turkey: a Comparison of the IPO Methods

Underpricing in Turkey: a Comparison of the IPO Methods Abstract This paper addresses the question of what kind of selling and underwriting procedure might be preferred for controlling the amount and volatility of underpricing in the Istanbul Stock Exchange (ISE). Using 1993-2005 firm and issue data, we compare the three substantially different IPO methods available in the ISE. One is very similar to the book building mechanism used in the U.S., another is the fixed price offer, and the third one is the sale through the stock exchange method. The empirical analysis reveals significant first day underpricing of 7.01% in fixed price offer, 11.47% in book building mechanism, and 15.68% in sale through the stock exchange method. Finally, we also show that fixed price offers can better control the impact of market information on underpricing than sale through the stock exchange method. 1. Introduction Extensive amount of research from a variety of different markets have documented the presence of first-day underpricing upon the listing of initial public offerings. The evidence is well documented by Loughran, Ritter, and Rydqvist (1994) and Ritter1 (1998), (2003) in many developed and emerging markets. In developed markets, in the absence of restrictions on intra-day price movements, first-day underpricing is observed in broad price bands. However, in emerging markets, in the presence of daily volatility limits, first-day underpricing is observed in narrow price bands. In contrast to the daily price limits, significant positive short run returns are observed in a number of emerging markets and substantial amount of money is â€Å"left on the table by issuers. Besides empirical evidence, most of the theoretical models explaining IPO underpricing are grouped under four broad headings by Ljungqvist (2005), these are (i) information asymmetry between the investors, the issuing firm an d the underwriter, these models assume that one of these parties knows more than the others, (ii) institutional reasons, institutional theories focus on three features of the marketplace: litigation, banks price stabilizing activities once trading starts, and taxes, (iii) control considerations, control theories argue that underpricing helps shape the shareholder base so as to reduce intervention by outside investors once the company is public, (iv) behavioral approaches, behavioral theories assume either the presence of irrational investors who bid up the price of IPO shares beyond true value, or that issuers suffer from behavioral biases causing them to put insufficient pressure on the underwriting banks to have underpricing reduced. These theoretical models almost always end with the conclusion that the average IPO is undervalued at the offer price, where the initial investors, in most cases, benefit from possessing information by receiving allocations of shares in IPOs and earn the largest first-day returns. The expectations of issuing firms, investors and underwriters in IPO pricing are considerably different. In an offering, the issuer generally wants to receive the highest possible price to maximize cash flows to the firm. Investors like to purchase shares at a deep discount so that they can realize positive returns *Baskent University, Faculty of Economics and Administrative Sciences, Baglica Kampusu, Ankara, 06530, Turkey, + 90 (312) 234 10 10 /1728, [emailprotected] 1 Ritter (1998), (2003) provides an update on the compilation of Loughran, Ritter, and Rydqvist (1994) in a short investment period. Underwriters, acting as an intermediary between investors and issuing firms, suffer from a dilemma, if an underwriter determines IPO prices too low, where the foreseen amount of money left on the table will be huge, the issuing firm may withdraw or switch to another underwriter. On the other hand, if an underwriter determines IPO prices relatively high, investors will hesitate to buy new issues, which would result in low commissions and an unwanted effort in aftermarket stabilization activities. Underwriters, however, have an incentive to underprice the shares to ensure that they can sell the offering, and, unsurprisingly, there is extensive evidence that IPOs are, on average, underpriced. Hence, pricing of stocks in IPOs may be the most critical stage of the IPO process. More recently, the literature on IPOs, both theoretical and empirical, focuses on the efficiency mechanisms of the following methods for pricing initial public offerings. At the center of this literature, book building, auctions and fixed price offers differ mainly in price-discovery and share allocation process. Book Building in which the underwriters do road shows and take non-binding orders from Auctions in which the company sets a price range to be used as a non-restrictive guideline for investors, than accepts bids, each specifying a number of shares and a price the investor is willing to pay for them, finally, the market-clearing price set by the investors approximates the real price the shares will command in the market. Fixed Price Offer in which the issue price is set first and than orders are taken from investors who typically pay in advance for part or all of the shares that are ordered. Sale through the Stock Exchange in which the sale is initially conducted in the primary market of the stock exchange by a designated underwriter. Those investors who buy the shares in the primary market must wait until the shares trade in the secondary market in order to sell their shares. The price designated at the time of registration with the securities exchange commissions is set as the opening price. Hybrid Offerings in which the underwriters combine the preceding IPO methods, and design auction/fixed price, auction/book building and book building/fixed price hybrids. For most hybrids, the most common combination is the book building/fixed price offer, where the underwriter uses the book building method to set the price and allocate shares to institutional and foreign investors, and retain the fixed price offer to the domestic retail investors who do not participate in the price-setting process. This paper addresses the question of what kind of selling and underwriting procedure might be preferred for controlling the amount and volatility of underpricing in the Istanbul Stock Exchange (ISE). In this regard, we first compare the three IPO methods available in Turkey. One is very similar to the book building mechanism used in the U.S., another is the fixed price offer, and the third one is the sale through the stock exchange method. Then, we estimate a binary probit on the issuers choice between fixed price offer and sale through the stock exchange method, however, because of the declining importance of the book building mechanism in Turkey, we excluded the book build IPO sample from our binary probit estimations. Finally, we determine the factors that are expected to have an effect on the IPO returns. Our results indicate that, the comparison of the two mechanisms yield that for certain values, namely first day underpricing, IPO amount and fractions of equity sold, fixed pric e offer outperforms the sale through the stock exchange method. To the best of our knowledge, this is the first empirical study on the comparison between fixed price offer and sale through the stock exchange method in the IPO literature. The uniqueness of the data and the availability of the sale through the stock exchange method in the ISE make it possible to conduct a study on the comparison between these two methods. The remaining part of this paper is organized in six sections. In the next section, we provide a comparison of the theoretical and empirical research conducted on IPO methods across many countries around the world. In section 3, we describe the three important Turkish IPO market selling procedures. In section 4, we describe the data and the methodology we used in our empirical tests. Section 5 documents the relationship between market conditions and underpricing of IPOs in different time series and the last section concludes. 2. Comparison of the IPO methods in the literature: Theory and Evidence The efficiency of the IPO methods has been the subject of an academic research over a decade, both empirical studies and theoretical models have tried to explain the advantages of one method over another. The argument that is often made in favor of IPO methods is often empirical as well as theoretical. Researchers studying on the efficiency of the IPO methods try to answer the most challenging question, â€Å"Which one of the IPO mechanism is the most efficient?2. However, according to our comprehensive literature research, both empirical studies and theoretical models listed in Table have some mixed answers. 1. Book Building vs. Fixed Price Offer and/or Auctions Comparison of the IPO methods in the literature goes back to Benveniste and Spindt3 (1988), (1989) and Spatt and Srivastava (1991), they suggest that the American bookbuilding procedure is efficient since it encourages investors to reveal their beliefs about the issues value at a cost of initial underpricing. Book building allows investors to collect information about the value of the stock and price the issue more accurately. To compensate the investors who reveal information, underwriter will favor them when allocating shares. However, fixed price mechanism does not utilize any information about realized buyer valuationsin setting the issue price and is generally inefficient. Loughran, Ritter and Rydqvist (1994) present the first international evidence on the short-run and long-run performance of companies going public in many stock markets around the world. They document that the fixed price method is associated with greater underpricing because of the greater probability of the issue failing and the increased uncertainty associated with the longer time delay between offer and issuance time. Chowdhry and Sherman (1996) point out that two features of fixed price offers tend to lead to greater underpricing, relative to the book building method. The first one is the length of the bidding process, as the time gap between the offer and first day market price widens â€Å"price information leakage occurs, the second one is the common requirement that investors pay in advance for their entire order. Benveniste and Busaba (1997), extend Welchs4 (1992), model of information cascades in investment decisions and present a theoretical comparison of the fixed-price and book-building mechanisms. They exhibit that issuers with a greater concern for risk will prefer a fixed-price offer, because book- building might generate higher expected proceeds, and exclusively provides an opportunity to sell additional shares at full value but it also exposes them to higher risk. Ritter (1998) demonstrates that countries that use bookbuilding typically have less underpricing than countries using f ixed-price offerings, more underpricing under fixed-price offering procedures can be attributed to informational cascades. However, Loughran, Ritter and Rydqvist (1994) and Ritter (1998) point out that IPOs with discretionary allocation (Fixed Price Offering and Book-building) are underpriced more than those with non-discretionary allocation (Offer for sale and Auctions), especially in Auctions. Under discretionary allocation, the first day price increase averaged 37% in fixed price offerings, 12% in book building. Under non-discretionary allocation, the first day price increase averaged of 27% in Offer for sale and 9% in Auctions. 2 In terms of controlling the amout and volatility of underpricing, share allocation and pricing. 3 The literature on underpricing in initial public offerings goes back to Logue (1973), Ibbotson (1975), Chalk and Peavy (1987), Miller and Reilly (1987), Ritter (1984), Rock (1986), Allen and Faulhaber (1989), Benveniste and Spindt (1988, 1989), Grinblatt an d Hwang (1989), and Welch (1989). However, the mechanism by which initial issues are sold has largely been ignored until Benveniste and Spindt (1988), (1989). 4 Welch (1992) focuses on the fixed-price procedure used in some non-US countries, and shows that this procedure can cause informational cascades: investors who observe the investment choice made by previous investors can update their beliefs about the value of the issued shares. Sherman (2000), (2002) shows that fixed price offer, can lead to higher underpricing than book building. Contrary to the fixed price offer and the auction method, in book building underwriters discriminate investors in the allocation of shares to establish long-run relationship with intermediates. Book building gives the underwriter greater flexibility in designing a solution that reflects the individual issuers preferences. By controlling investor access to IPO shares, book building controls both the winners curse problem that affects discriminatory auctions and the free rider problem that affects uniform price auctions. Book building also reduces uncertainty for both issuers and investors. In a study that covers 47 countries, Sherman (2002) has found that in all countries in which the bookbuilding mechanism has been introduced, pre-existing auction systems have decreased in popularity or disappeared altogether. Ljungqvist, Jenkinson and Wilhelm (2000) use a unique dataset containing information on 2,051 initial public offerings in 61 stock markets around the world, during the period of 1992-1999. The authors examine the relative direct and indirect costs of offerings carried out by book building and fixed-price methods. They find that, the direct costs of book building are typically twice as large as direct costs for fixed-price offers. Compared to fixed price offerings, book building efforts though more expensive produce far less underpricing. Nevertheless, fixed price offering is still an extremely common method that is not likely to be abandoned by the underwriters completely. Compared to book building efforts, fixed price offering is an efficient, low cost way to distribute shares to retail investors, avoiding the high fixed costs of road shows. Aorsio, Giudici and Paleari (2000), Guidici and Paleari (2001) present an empirical study conducted on the Milan Stock Exchange companies bet ween 1985 and 1999. Authors distinguish between fixed- price offers and open-price offers with bookbuilding and find different underpricing levels and statistically significant determinants. They state that if the offering is preceded by book building, the underpricing is significantly lower (8.32 % vs. 28.33% in fixed-price offerings), this method allows the issuing parties to collect information from the institutions and to signal good news or bad news to retailers through the revision of the prospectus price range. Therefore, the cost of raising private information is reduced and the requested underpricing is lower. The evolution of the placing procedure, from fixed price to book building, has considerably improved the efficiency of Italian IPO market. Biais and Faugeron-Crouzet (2002) analyze and compare the performance of book building, fixed price offering, uniform price auction, internet-based Open IPO mechanism, and an auction like mechanism called the Mise en Vente in France. Conclusions emerging from their analysis are; Fixed price offerings lead to inefficient pricing and winners curse. Dutch auctions can also lead to inefficiencies, to the extent that they are conductive to tacit collusions by investors. The book building and an auction like mechanism Mise en Vente can lead to optimal information elicitation and price discovery. Chahine (2002) investigates the relationship between underpricing and the investors interest prior to and after the IPO day on 305 French issues. Empirical results show that book-built issues have a lower underpricing, on median, but a higher variance level, than the auction-like and fixed-price offerings. Despite the high initial underpricing of some book-built issues, book-building procedure appears to better control the information gathering from investors participating in the offering, and to be a more efficient pricing system than the auction-like procedure. Paney (2004) examines the initial returns, characteristics of issuers and long run performance of Indian IPOs on a sample of 84 Indian IPOs between 1999 and 2002. In terms of initial returns or underpricing, Paney (2004) finds that fixed price offering yields higher initial returns on average, as compared to book building. In terms of issuer characteristics, Paney (2004) finds that fixed price offering are used by issuers of fering large proportion of their capital by raising a small amount of money. In contrast, book building is opted for by issuers, offering small portion of their stocks and mobilizing larger sums of money. Kutsuna and Smith (2004) present an empirical study conducted on the Japanese IPOs between 1995 and 1999. Using a sample of 163 book-built and 321 auctioned IPOs by JASDAQ companies, authors document that average total issue cost, measured as a percent of aftermarket price, was significantly higher in the book-building regime than in the earlier auction regime. However, when results are weighted by issue size, the estimated aggregate costs of auctioning and book building are similar. This outcome favors book building over auctions for two reasons. First, auction-method estimates do not reflect opportunity costs related to underinvestment. Second, issue cost estimates ignore other benefits of the more-accurate pricing that book building affords. Anand (2005) examines the differences between book building and Dutch-auction, and shows that the bookbuilding method of offering securities is superior to the Dutch-auction IPOs. Stated by Anand (2005), while the Dutch-auction may seem to lea d to efficient price discovery based on investor demand, recent transactions suggest that price discovery is not always accurate and that, indeed, underpricing occurs even in the Dutch auction. Further, even if the Dutch auction is more fair than the bookbuilt process in terms of allocating securities, the Dutch auction can lead to less capital market efficiency overall and can therefore be questioned as a basis for promoting this type of offering. Jagannathan and Shermans (2005) research on the efficiency of IPO mechanism show that hybrid bookbuildings5, unlike auctions, have proved effective in many different countries, cultures, time periods, and market conditions. Jagannathan and Sherman (2005) propose a new IPO mechanism that could overcome the problems with standard auctions. A method that retains the advantages of bookbuilding, while modifying it to increase transparency. Although not a direct comparison between book building, auctions and fixed-price offers, Cornelli and Gol dreich6 (2001), (2003) examine a unique data set of international book building allocations and find that the underwriter favors both regular investors and investors that supply information on the value of the issue. Degeorge, Derrien and Womack (2005) have presented empirical evidence from Frances IPO market that underwriters employing the bookbuilding process implicitly committed to providing more favorable coverage to the companies they took public in the aftermarket. Authors find convincing empirical evidence that in addition to placing the IPO shares with investors, underwriters employing book-building implicitly commit to providing more favorable coverage to the companies they take public in the aftermarket. Specifically, analysts, affiliated with the lead underwriter of the offering, issue more favorable recommendations for recent book-built IPOs than for auctioned offerings. 2.2. Fixed Price Offer vs. Book Building and/or Auctions The pricing of Initial Public Offerings (IPOs) in the short-run has been analyzed by several theoretical and empirical studies referring to the major international stock markets. Extensive research has revealed that the fixed-price offering all over the world suffer from IPO underpricing especially in these major markets. However, studies conducted by Busaba and Cheng (2001), Bierbaum and Grimm (2003), Chemmanur and Liu (2003), Hsu and Hung (2005) present some evidence on the efficiency of fixed price offering over book building and auctions. Busaba and Cheng (2001) show that the bookbuilding process elicits much information from informed traders at the IPO stage by promising larger allocation of valuable stocks to investors who truthfully reveal their information, and therefore reduce the impact that such informed traders have in the after- 5 In the hybrid bookbuilding offers, all retail investors are allowed to place orders in a public offer tranche, and all have an equal chance of getting shares. The prices, however, are set by professional investors who are given incentives to attend the road show. Jenkinson and Jones (2004), cast some doubts about the findings of Cornelli and Goldreich (2001) upon the extent of information production during the bookbuilding period. market trading. In contrast, the fixed price method, that does not elicits such private information at the IPO stage, enables informed traders to use such information in the after-market at the expense of the uninformed traders. In this regard, if the underwriter building a book can not successfully target a subset of the informed investors, a simple fixed price strategy that involves allocating the issue to retail investors produces higher proceeds on average. The comparatively high adverse selection problems associated with the fixed-price method will spill over from the IPO stage to the after-market. This in turn means that liquidity will be relatively more important for IPOs carried out via a fixed- price method than via bookbuilding. Authors show that, compared with a fixed-price offering, the bookbuilding process elicits more information from informed traders at the IPO stage, and therefore reduce adverse selection problems in the after-market trading. However, by the same toke n bookbuilding may require larger informational rents to be paid at the IPO stage. This suggests that underpricing should be larger for IPOs carried out via bookbuilding than via a fixed-price method. Bierbaum and Grimm (2003) compare the fixed price and the uniform auction in a game theoretic framework. The comparison of the two mechanisms yields that for certain parameter values, namely a low variance of the asset and, at the same time, a sufficiently high probability of low demand, fixed price method outperforms the auction in terms of revenue. Moreover, the revenue in the fixed price mechanism is typically less volatile than the revenue in the auction. Chemmanur and Liu (2003) model the effect of costly information production on issuers choice of a fixed-price offer or a uniform-price auction with exogenous entry of bidders. Their model predicts that IPO auctions will exhibit a significantly lower mean and variance of underpricing compared to fixed- price offerings. This is due to the fact that the offering price in an IPO auction aggregates the information produced by outsiders to a significant degree, so that this offering price is greater for higher intrinsic-value firms and lower for lower intrinsic-value firms in IPO auctions than in fixed- price offerings. At the same time, there is less information production in IPO auctions compared to fixed-price offerings where the offering price is set by insiders to induce the optimal degree of information production, so that a lower amount of information is reflected in the opening price of the shares listed in the stock market. Thus, Chemmanur and Liu (2003) demonstrated that, in many situations, firms will prefer to go public using fixed-price offerings rather than IPO auctions in equilibrium, since such offerings allow the firm to induce the optimal extent of information production. Hsu and Hung (2005) present an empirical study conducted on the Taiwanese companies between 1996 and 2000. Using a sample of 280 pure fixed-price offers and 84 hybrid auctioned, authors find that, Taiwanese hybrid auctions are associated with less under-pricing and with a lower variance of under-pricing than versus the pure fixed-price offers, but these differences are not statistically different. On the other hand, we find that the market index returns prior to the IPO pricing date have a strong influence on the under-pricing of Taiwanese IPO auctions and of the pure fixed-price offers. Authors provide empirical evidence of how Taiwanese issuers make the choice of IPO method. Taiwanese issuers that float large IPOs, or which have a pricing conflict with underwriters, will likely use a hybrid auction to distribute shares. On the other hand, when the relative risk level of IPO auctions to fixed-price offers has increased, the issuers will likely avoid an IPO auction. Empirical evidenc e also explains why Taiwanese IPO auctions have lost market share to fixed-price offers. Further results reveal that Taiwanese IPO auctions are not associated with less under-pricing and with a lower variance of under-pricing, nor are they better at incorporating recent market information into the IPO price than the pure fixed-price offers. Authors examination on issuers choice of hybrid auctions or fixed-price offers indicates that Taiwanese issuers condition their choice of IPO method not only on firm characteristics, but also on IPO size and on market conditions. This is why Taiwanese issuers prefer a pure fixed-price offer to a hybrid auction are based on market volatility and the pricing conflict. In doing so, under a volatile market where Taiwanese hybrid auctions have become much riskier relative to the pure fixed-price offers, issuers will prefer a pure fixed-price offer to a hybrid auction, resulting in a lower popularity of Taiwanese hybrid auctions. As listed in Table 1, Fixed Price Offering seems to be the less favorable method comparing to Book building and Auction Methods. It is a fact that, the worldwide introduction of book building method during the 90s has promoted efficiency in the major equity markets. However, Sherman (2002) states that stock markets listing few IPOs each year, fixed price offering is still be the optimal method. 2.3. Auctions vs. Book Building and/or Fixed Price Offer Using a sample of 108 French firms marketed on the Second Marchà © between 1984 and 1991, Leleux and Paliard (1995) show that initial returns are significantly higher for firms issuing through the fixed- price procedure than for firms using auction-like procedures. Leleux and Paliard (1995) state that the auction mechanism is associated with less underpricing and thus more efficient, since this procedure is able to incorporate more information from recent market momentum into the pricing of the IPO. Beierlein (2000) compares the book-bu ilding method to two commonly used auction mechanisms, the discriminatory price auction and the uniform price auction in terms of underpricing and the long run performance of IPOs relative to the market. Using data from Japan, Israel and the U.S., author finds evidence that the U.S. book building is less efficient than the auction mechanisms are. Specifically, underpricing is significantly higher in the U.S. than it is in Japan or Israel and bookbuilding appears to incorporate less demand information into the offer price than the auction mechanisms do. Bennouri and Falconieri (2001) suggest that auction mechanisms are the optimal way to sell new shares because auction procedures are more informationally efficient than bookbuilding. Assuming ex ante uncertainty about the firm true value, then auction mechanisms are able to elicit and incorporate more information from the market as well as from investors into the pricing of IPOs. Draho (2001) suggests that underpricing in bookbuilt IPOs is due to the uncertainty about the price on the secondary market rather than about the firm value, as most of the literature assume. Nonetheless, his results indicate auction-like mechanisms as the most efficient ones, since they are open to all investors who are moreover required to submit price-quantity bids. McDonald (2001) examines the efficiency mechanisms of the sealed-bid uniform-price auctions over book building method in a theoretical framework and concludes that the uniform-price auction, due to its generalized Vickrey auction properties, is indeed an efficient auction mechanism especially for the sale of IPOs over the Internet. Biais, Bossaert, and Rochet, (2002) study the optimal IPO mechanism by which the seller can extract private information to maximize the expected net IPO proceeds. They find that the optimal mechanism they characterize is similar to auction-like IPO procedures used in the U.K. and in France. Kaneko and Pettway (2003) examine the Japanese initial returns before and after the introduction of book building, and find that underpricing in book building method is significantly higher than auctions, especially during hot markets. Results suggest that the move from auction-priced to underwriter-priced IPOs using book building in Japan has significantly reduced the wealth of issuing companies while increasing the wealth of underwriter-selected investors. Derrien and Womack (2003), use the French IPO data for the 1992-1998 period and compare the three underwriting/selling mechanisms available on the French market. One is very similar to the book building mechanism used in the United States. Another is a fixed price procedure. The third one is an auction-like procedure. Authors show that the auction procedure is better than the others at controlling underpricing in general as well as the variance of underpricing of the issued shares in â€Å"hot versus â€Å"cold markets. Fixed price offering method is indeed inefficient and leads to greater underpricing compared to IPOs sold through book-building and auctions. However, the main empirical comparison in this paper is between the two main procedures auction and book building. Authors find evidence that during hot markets auctioning is associated with less underpricing than book building. They attribute the result to the auction methods ability to incorporate more information about recent market performance into the offer price. This result provides empirical support for the theoretical work by Biais, Bossaerts, and Rochet (2002) who suggests the auction procedure is optimal. In line with the evidence of Derrien and Womack (2003) that an auction procedure is more efficient in incorporating recent market momentum in the offer price compared to fixed price procedure, Vandemaele (2003) uses the French IPO data for the 1984-1995 period and points out the factors that may influence issue procedure choice. Results indicate that, firms facing relatively high valuation uncertainty are high likely to opt for an auction-like procedure and the likelihood of opting for an auction increases as the investment bank reputation associated with the issue decreases. Although not a direct comparison between auctions, book building and fixed-price offers, studies in Pettway and Kanekos (1996) examination on Japanese auctions, Kandel, Sarig and Wohls, (1999) examination on Israeli auctions, and Liu, Wei and Liaws (2003) examination on Taiwanese auctions seem to suggest that IPO auctions lead to less under-pricing. Biais and Faugeron-Crouzet (2001) show that a uniform price auction can prevent tacit collusion among bidders and can truthfully elicit information from investors in much the same way as book building. Bulow and Klemperer (1998) also show that it can be optimal in an auction to set a price at which there is excess demand. 2.4. Research on IPOs in the Istanbul Stock Exchange (ISE) Firms in Turkey may offer their shares to the public through, book building, fixed price offer and sale through the stock exchange method, however, they are mainly underwritten and sold using the fixed- price offering method; a method which is very common world w ide is becoming much less common, particularly for more active markets. Recent empirical studies, focused mainly on the initial returns and under pricing, condu