Monday, March 16, 2020

Risk Management in the Shipping Industry Essay Example

Risk Management in the Shipping Industry Essay Example Risk Management in the Shipping Industry Essay Risk Management in the Shipping Industry Essay Risk Management in the Shipping Industry Shipping is a business that is extremely in tune with prevailing market sentiment. Its success depends on a prospering economy, due to the increased global trade. It is also partially sheltered from temporary downturns because businesses will switch from more expensive air freight, and save costs by using shipping as their means of transporting their goods instead. The industry is also an extremely competitive one, as there are only two main considerations why businesses will prefer one shipping company over another the price and speed at which their goods are delivered to their destination. This has made it difficult for companies to differentiate themselves and demand a higher premium for their services. As a highly volatile business, shippers are subjected to three main types of risk: freight price risk, fuel price risk and interest rate risk. 1) Freight price risk Freight rates have historically been very volatile, and this has made it difficult to accurately predict the cash inflows of the company. This is due to the impact of unforeseen geo-political influences and the slow speed of adjusting supply to demand. Freight price risk is thus the risk of loss arising from unexpected changes in freight rates. As a result, shippers commonly buy and sell futures contracts called freight forward agreements based on the Baltic Dry Index of bulk rates to hedge against the risk that a rise or fall in the spot rate might cut into the profit they expect from the voyage. 2) Fuel price risk Fuel prices take up a large amount of variable costs and companies try to hedge against any upward spikes. Although, it is possible to pass on these fuel surcharges to the customers, there is a limit to any increases in order for the firm to continue offering competitive pricing. Call options are often used as the solution and bought at a certain fuel strike price, to hedge against a rise in the future. If the actual price rises above the strike price, the company will choose to exercise the option to buy the fuel at the lower strike price, thereby putting a limit to their cash outflows. 3) Interest rate risk Shipping is a capital intensive industry with significant funding needs for fleet expansion and replacement purposes. Yet, it has very little opportunities to diversify its sources of funding, because most of it comes from bank debt. Some loans are at fixed interest rates, while others are at floating rates. The company thus strives to maintain the optimum mix of fixed and floating interest rates on its net debt that best reflects expectations and risks by engaging in interest rate swaps. In conclusion, the issues of variability and uncertainty in the future will always continue to plague businesses. While risk management can do very little to influence variability (markets will continue to fluctuate no matter how advanced risk management techniques become), much can be done to hedge against the uncertainty.

Friday, February 28, 2020

Why is money supply not under the tight control of central banks Essay - 3

Why is money supply not under the tight control of central banks - Essay Example mics, is that one of the main functions, or the main function, of the central bank is to analyse the progress of the economy, and then to steer it with skilful judgment towards health and growth, by making decisions to change their base interest rate, with carefully chosen timing, amount and direction. One of these objectives is the control of money supply ((Black 2000, Visser 2005, Smullen & Hand 2005). Fiscal and monetary policies are among the most important public policies available in promoting growth and stability within the institutional framework of a free, competitive society (Black 2000, Visser 2005, Smullen & Hand 2005). By definition, fiscal policy is customarily defined as a manipulation of the government financial transactions, why on the other hand monetary policy is governmental control over the quantity of money or its terms of exchange (Winston, Holt &Hall 1960). In other words, these are tools being manipulated by the government to achieve desired economic and government objectives. One of these objectives is to control the supply of money. Monetary policy is referred to as a means by which the central bank tries to sway the economy to equilibrium by influencing the supply of money (Black 2000, Smullen & Hand 2005). This is achieved through four main approaches, which include: printing more money; direct controls over money held by the money sector; open market operations and influencing the interest rate. Both tight and easy monetary policies can also be identified. Like easy fiscal policy, easy monetary policy is one whereby the central bank embarks on a policy to increase the supply of money. On the other hand tight monetary policy is a policy whereby the central bank embarks on a policy to limit the circulation of money such as increasing interest rates. Fiscal policy refers to a situation whereby the government restores equilibrium in the economy by making changes to taxes or government expenditure on public goods and services (Smullen &

Wednesday, February 12, 2020

Visible Organizational Culture Essay Example | Topics and Well Written Essays - 500 words

Visible Organizational Culture - Essay Example organizational units, enhancing cross-cultural management, developing teamwork support and sustaining workforce diversity management successfully (Baker, 2002). McDonald’s Corporation is recognized to be one of the foremost foodservice retailers in the world which possesses over 33,000 local restaurants that serve approximately 68 million individuals in a single day in 119 countries. The organization has focused upon various areas that include delivering quality products to its customers, ensuring sustainable management of supply chain and maintaining their environmental responsibility in order to make constant improvements in the upcoming years (McDonald’s, 2012). A visible organizational culture often involves the policies, values, procedure manuals and organizational charts of an organization. In this similar context, the imperative business values of McDonald’s include depicting dedication to offer incomparable levels of cultural values to its employees, offering better quality service as well as cleanliness to its large base of customers and most importantly performing its business operations with integrity and honesty. The other noteworthy business values of McDonald’s include its commitment to the working personnel of the company by delivering various attractive opportunities in terms of rewards, ethically conducting business operations, growing the business more profitably and striving continuously to enhance in order to attain more profitability in the long term (McDonald’s, 2012). From the perspective of the organizational culture, it has been viewed that McDonald’s holds a sturdy organizational culture. Due to its strong organizational culture, the organization has enjoyed overwhelming success in comparison with other competitors in the world. One of the imperative facets of McDonald’s is that it is well known worldwide for the deliverance of standard menus to its valued customers with outstanding product quality. Moreover, the

Friday, January 31, 2020

Controlling the Cyber-conduct of Young People Research Paper

Controlling the Cyber-conduct of Young People - Research Paper Example depends on reciprocal expectations concerning what the other agents will do in a situation where a decision whether or not to conform is at stake† (3). â€Å"Gimalda and Sacconi’s model in particular sees compliance as the consequence both of agents’ participation in choosing the norm in a social contract setting under a veil of ignorance and of the existence of expectations about reciprocal willingness to conform† (5). â€Å"Proposed the â€Å"sense of justice† as a solution for the stability problem of a well-ordered society-i.e. a society whose institutions are arranged according to the principles of justice chosen under a veil of ignorance† (8). Statements: Sources two, four and seven work to prove the opposite argument that it is an uncanny proposition to regularly observe and impose restriction on the internet and mobile use of teenagers to control issues like cyber-bullying and sexting. The claims by Bristow and Paton will argue that restrictions on the internet use of children are offering an unrealistic preparation to face the society in which they will have to function independently. The claim will be that as children are encouraged to be self-dependent in the real world, restricting the same opportunity in the cyber-world is a bizarre idea with no visible benefits. However, using sources, I will prove how the activities of children remain under constant observation in the real society though they perceive themselves to be free and how social conformity and family influence the way they behave. The briefing by the American Psychological Association will show that people under the age of 20 do not have a brain that is mature enough to take wise decisions. The work by Cialdini and Goldstein will show how the society influences the behavior of adolescents, and Mahalihali’s work is used to describe how the influence of family members, especially parents, decides a child’s

Thursday, January 23, 2020

Dreaming with Lolita Essay -- Essays Papers

Dreaming with Lolita What world are you living in? Over the past hundreds of years psychologists have been studying the functions of the human mind. It is a task that seems to prolong as information and new methods arrive. What makes us dream or imagine things? The fact that we have dreams and ambitions in life strives us to believe through imagining and dreaming that we will eventually get a break in life. Lolita, by Vladimir Nabokov, is a novel that characterizes these types of situations. It implies similarity in plot and theme between Lolita and certain fairy tales. Furthermore, Nabokov implies the folk characterization in Lolita to show the paradoxical relationship of art and reality thus showing how real life people live out the lives of fictional fairy tales. It is also evident that because of the folkloristic material portrayed in Lolita, it is seen that man lives between two worlds, the imagined one and the true one. The image of Lolita had such effect on society in the way that pre pubescent ch ildren wanted to be like her, they wanted to be as pretty as her and wear those heart shaped sunglasses like her thus living in a world of fantasy. Even today's society still has, more then ever that Lolita syndrome thus causing a lot of pre pubescent kids to live in a fantasy world instead of the real one. Nabokov shows all throughout the novel the strong parallel between real life characters and folk characters. The four main characters in the novel all play an have their own folkloristic roles in the novel. For example, Charlotte Haze, which is Lolita's mother, is portrayed in the novel as the, "jealous mother who is so frequently the villain in folk tales such as "Cinderella" and "Snow White" (Jones 69). All through out... ...gative things can occur. For example, you can tarnish a kids self esteem (Marks 71). The Lolita syndrome also deals with the fact that any new or material good that comes out on the market; the Lolita syndrome will "change everything it touches into a new and infinitely flexible form" (Marks 71). This transcends anything because people want to be like Loita. If she wears heart shaped sunglasses then so do pre pubescent and adolescent kids who fantasize being her and the only way their fantasy can become remotely a reality is by buying these items. Man lives in two different worlds. It is evident that through Lolita it is shown how real life characters can live out the lives of folk characters. Are we living in a fantasized world then? The truth of the matter is that we live in an imperfect world. We need to get that through our heads. What world do you live in? Dreaming with Lolita Essay -- Essays Papers Dreaming with Lolita What world are you living in? Over the past hundreds of years psychologists have been studying the functions of the human mind. It is a task that seems to prolong as information and new methods arrive. What makes us dream or imagine things? The fact that we have dreams and ambitions in life strives us to believe through imagining and dreaming that we will eventually get a break in life. Lolita, by Vladimir Nabokov, is a novel that characterizes these types of situations. It implies similarity in plot and theme between Lolita and certain fairy tales. Furthermore, Nabokov implies the folk characterization in Lolita to show the paradoxical relationship of art and reality thus showing how real life people live out the lives of fictional fairy tales. It is also evident that because of the folkloristic material portrayed in Lolita, it is seen that man lives between two worlds, the imagined one and the true one. The image of Lolita had such effect on society in the way that pre pubescent ch ildren wanted to be like her, they wanted to be as pretty as her and wear those heart shaped sunglasses like her thus living in a world of fantasy. Even today's society still has, more then ever that Lolita syndrome thus causing a lot of pre pubescent kids to live in a fantasy world instead of the real one. Nabokov shows all throughout the novel the strong parallel between real life characters and folk characters. The four main characters in the novel all play an have their own folkloristic roles in the novel. For example, Charlotte Haze, which is Lolita's mother, is portrayed in the novel as the, "jealous mother who is so frequently the villain in folk tales such as "Cinderella" and "Snow White" (Jones 69). All through out... ...gative things can occur. For example, you can tarnish a kids self esteem (Marks 71). The Lolita syndrome also deals with the fact that any new or material good that comes out on the market; the Lolita syndrome will "change everything it touches into a new and infinitely flexible form" (Marks 71). This transcends anything because people want to be like Loita. If she wears heart shaped sunglasses then so do pre pubescent and adolescent kids who fantasize being her and the only way their fantasy can become remotely a reality is by buying these items. Man lives in two different worlds. It is evident that through Lolita it is shown how real life characters can live out the lives of folk characters. Are we living in a fantasized world then? The truth of the matter is that we live in an imperfect world. We need to get that through our heads. What world do you live in?

Wednesday, January 15, 2020

Howard Street Jewelers Case Study Essay

1. The Levis overlooked several internal control concepts that could have prevented Betty’s embezzlement from the company. †¢ Segregation of duties: Betty had responsibilities in too many areas. She maintained the cash, the cash receipts, and the sales records for Howard Street Jewelers. This not only provided Betty with plenty of opportunity, but also gave her the means to conceal the theft. †¢ Authorization of transactions: Betty was able to put items on layaway without authorization from management. †¢ Physical controls: Cash should have been reconciled by management and cash shortages noted by management. The fact that the Levis were unaware of cash shortages indicates that there were poor physical controls when it came to cash counts. 2. In the first circumstance, in which the CPA was simply involved with the company’s tax returns, the CPA does not have any responsibility to pursue the matter as the CPA was not auditing the client. However, the cash shortages should have been brought to the owner’s attention as soon as they were noticed. A working relationship between an entity and the CPA is one of mutual trust and there would have been no harm in informing the owners that cash shortages were occurring. In the second circumstance, in which the CPA was responsible for auditing and compiling the company’s financial statements, the CPA would have to practice due diligence and investigate and gather evidence that fraud was occurring. If this was the case, then Betty would have been discovered before her fraud equaled 350,000 dollars. 3. In order to be successful at implementing internal controls, the Trubeys need an organizational structure and a control environment. I would recommend that they establish core values that they want practiced within their business and a way that those values can be communicated to the staff daily. For instance, during training, they can review those ethical values and implement a way to recognize those that practice those values at least once a month. This creates an understanding amongst staff that the company places a high value on ethics. The key internal control issues that the Trubeys will face while owning a jewelry store are physical controls, segregation of duties, and authorizations. The five control activities that I would recommend based on these issues are outlined and explained below: †¢ Duties should be shared amongst staff. Placing cashiers on an alternating schedule between selling and cashiering splits the responsibilities and  provides each staff member wit h the ability to assess the work of the others. This practice can reduce the opportunity for cash theft as it cannot be easily concealed. Even though Myrna would be head salesclerk as an owner of the business, she should also welcome staff to review her work to enforce a system of integrity. †¢ Transaction authorization should be required for any transaction over a certain amount deemed high risk by management. An example of this would be one sales clerk and one manager must sign the sales record to indicate that not only the sale occurred but that it was recorded appropriately. Returns should be authorized by a member of management as well. †¢ Cash should be controlled on a daily basis. A good system for this is to audit the register at the end of each employee’s shift. Any point of sale system will indicate the amount that is supposed to be in the register at the time of audit. The owners should establish a policy of rewarding cash counts that are exact, and reprimands for cash shortages or overages in excess of twenty dollars. This also eliminates the guesswork of who is responsible for any cash shortage and lets the employees know that their accuracy will be checked by a member of management. †¢ Deposits should be reconciled by a member of management. All deposits should require two signatures verifying the accuracy of the deposit total and that it was deposited to the bank. When verifying the deposit receipts, all figures should match what was recorded, including the date. †¢ There should be physical security for inventory items. In the case of a jewelry store, where inventory is highly priced, it should be locked away with keys and key control should be implemented. Other physical security items would include security cameras and physical inventory counts twice a year. These five internal control activities, if implemented, will give the Trubeys the opportunity to excel in their business. ​

Tuesday, January 7, 2020

The Theories, Social Transmission Versus Social...

When parents send their children off to school, they are placing immeasurable trust in our educational system to academically and intellectually develop them. However, in many cases teachers too often act as authoritarians, and not as agents that encourage independent thinking. Sadovnik (2006) describes the atmosphere in the classroom by citing Dewey’s work, saying that he believed that the schools, teachers, instruction, and curriculum all had a role in a students’ development. â€Å"In a progressive setting, the teacher is no longer the authoritarian figure from which all knowledge flows; rather, the teacher assumes the peripheral position of facilitator. The teacher encourages, offers suggestions, questions, and helps plan and implement courses of study† (Sadovnik, 2006). There is an on-going debate in education about what are the most affective theories, social transmission versus social transformational theories. DeMarrais (1994) described theories of transm ission as, â€Å"concerned with description of the structural aspects of society and with how existing social structures facilitate the general functioning of society.† There are social systems within schools; those systems reinforce schools priorities and values. DeMarrais (1994) described theories of transformation as, â€Å"less rigid then social transmission theories. Their central concern is the transformation, rather than reproduction, of the society.† These theories value the opportunity for a student to become empowered,Show MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesPrentice Hall. All rights reserved. Manufactured in the United States of America. 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