The Physiology of Fitness: The Body’s Acute Response to Exercise

UNIT 2 As soon as you begin to exercise changes begin to happen within your body. Body systems work together, to make sure that you have enough energy to perform. Body systems respond both in the Short and Long-term in response to exercise. It is important to understand the changes that happen to the body as a result of physical activity. You will understand the: Muscoskeletal, Cardiovascular and Respiratory responses to exercise through this unit As soon as you begin to exercise changes begin to happen within your body. Body systems work together, to make sure that you have enough energy to perform.Body systems respond both in the Short and Long-term in response to exercise. It is important to understand the changes that happen to the body as a result of physical activity. You will understand the: Muscoskeletal, Cardiovascular and Respiratory responses to exercise through this unit THE PHYSIOLOGY OF FITNESS CONTEXT SCENARIO You have been appointed as a Trainee Sports Therapist worki ng with the Sixth Form Sports Teams. As part of your role you need to work with players from the teams to look at the effects that exercise has on the body.You will need to look at the effects of exercise in both the short and long term and conduct some investigations to show the players the effects that exercise has on their bodies. UNIT 2 THE PHYSIOLOGY OF FITNESS ASSESSMENT TASK 1(P1/P2/M1) The body’s acute response to exercise SCENARIO As a trainee Sports Therapist you have been asked to conduct some research into the short term effects of exercise on the following body systems (Muscoskeletal, Energy, Cardiovascular and Respiratory System). You need to feedback to the Senior Sports Therapist with your findings. * DESCRIBE the MUSCOSKELETAL and ENERGY systems response to acute exercise (P1) DESCRIBE the CARDIOVASCULAR and RESPIRATORY systems responses to acute exercise(P2) * EXPLAIN the response of the MUSCOSKELTAL, CARDIOVASCULAR and RESPIRATORY Systems to acute exercise ( M1 ) START DATE: HAND-IN DATE: START DATE: HAND-IN DATE: UNIT 2 ASSESSMENT TASK 1 (P1/P2/M1). HELPSHEET GRADING CRITERIA PASS| PASS| MERIT| P1: DESCRIBE the MUSCOSKELETAL and ENERGY systems response to acute exercise| P2: DESCRIBE the CARDIOVASCULAR and RESPIRATORY systems responses to acute exercise| M1: EXPLAIN the response of the MUSCOSKELTAL, CARDIOVASCULAR and RESPIRATORY Systems to acute exercise|USE OF KEY VERBS VERB| PLAIN ENGLISH| Describe| Try to â€Å"Paint a picture† in words. Assume that the person that you are Describing to does not know anything about the subject that you are describing. Tell them what you have learned. | Explain| Once you have described the subject, often you will need to give further details and reasons why. (e. g. ) Once you have described England’s poor performance in the World Cup, you may also give some reasons why the players did not perform as well as they could. | NO. | Learner Checklist(Steps to Success)| TICK WHEN COMPLETE| | | Learner| Assessor| | TITLE : The Body’s acute response to exercise| | | 2| Paint a picture of the effects that exercise has on the MUSCOSKELETAL system. Include the following: Increased Blood Supply, Increase in Muscle Pliability, Increased range of movement and Muscle Fibre Micro-Tears (e. g. ) Blood Supply increases to the muscles during exercise , this allows more oxygen to be delivered through the blood capillaries to fuel the muscles. Give further details and reasons why (where appropriate) for the effects on the MUSCOSKELTAL system. (e. g. )Dilation of the blood capillaries occurs this allows more blood to flow through the capillaries.This means that an increased amount of oxygen and carbon dioxide can be exchanged between the capillaries and skeletal muscle allowing energy production to increase and also to increase the speed at which waste is removed| | | 3| Paint a picture of the effects that exercise has on the ENERGY systems. Include the following: Phosphocreat ine, Lactic Acid and Aerobic Energy Systems, Energy Continuum and Energy requirement of different activities (e. g. ) Increased movement during exercise increases the demands on the body for energy. The Creatine Phosphate system can provide energy for High intensity activities lasting up to 10 seconds.The supply of Creatine Phosphate will deplete after 10 seconds however. | | | 4| Paint a picture of the effects that exercise has on the CARDIOVASCULAR system. Include: Anticipatory Response, Activity Response, Increased Blood Pressure, Vasoconstriction, and Vasodilation. (e. g. ) Heart Rate increases immediately as soon as you take part in physical activity. The heart beats more times each minute. This allows more blood containing oxygen to be delivered to skeletal muscles to allow them to create energy. Give further details and reasons why (where appropriate) for the effects on the Cardiovascular system. e. g. ) Vasoconstriction occurs where some blood vessels redirect blood away fro m areas where it is not needed. The diameter of the blood vessels is temporarily reduced so less blood will flow to certain areas. For example, when Cycling less blood is needed in the upper body in comparison to the leg muscles| | | 5| Paint a picture of the effects that exercise has on the RESPIRATORY system. Include the following: Increase in Breathing Rate, Increased Tidal Volume. (e. g. ) Breathing rate increases as an immediate response to exercise as more oxygen is needed by the body to roduce energy. More breaths and deeper breaths are taken in order to achieve this. Give further details and reasons why (where appropriate) for the effects on the Respiratory system. ( e. g. )The immediate increase in breathing rate is partly due to receptors in the muscles and joints sensing the increase in activity in these parts of the body and sending messages to the brain to increase the rate of breathing so that more oxygen can be delivered to the muscles and more carbon dioxide can be r emoved. | | | USE IMAGES TO MAKE YOUR WORK INTERESTING| UNIT 2 THE PHYSIOLOGY OF FITNESSASSESSMENT TASK 2 (P3/P4/M2) The Long-term effects of Exercise SCENARIO To further your knowledge as a Trainee Sports Therapist, You have been asked to give a presentation to members of the Sixth Form Sports Teams to further their knowledge of how exercise affects their bodies over a period of time. Make sure that you cover the following as part of your presentation: * DESCRIBE the LONG-TERM effects of exercise on the Muscoskeletal system and Energy Systems (P3) * DESCRIBE the LONG-TERM effects of exercise on the Cardiovascular and Respiratory Systems (P4) EXPLAIN the LONG-TERM effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy Systems (M2) START DATE: HAND-IN DATE: START DATE: HAND-IN DATE: UNIT 2 ASSESSMENT TASK 2(P3/P4/M2). HELPSHEET GRADING CRITERIA PASS| PASS| MERIT| P3: DESCRIBE the LONG-TERM effects of exercise on the Muscoskeletal system and Energy Systems| P 4: DESCRIBE the LONG-TERM effects of exercise on the Cardiovascular and Respiratory Systems| M2: EXPLAIN the LONG-TERM effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy Systems| USE OF KEY VERBSVERB| PLAIN ENGLISH| Describe| Try to â€Å"Paint a picture† in words. Assume that the person that you are Describing to does not know anything about the subject that you are describing. Tell them what you have learned. | Explain| Once you have Described the subject, often you will need to give further details and reasons why. (e. g) Once you have described England’s poor performance in the World Cup, you may also give some reasons why the players did not perform as well as they could. | NO. | Learner Checklist(Steps to Success)| TICK WHEN COMPLETE| | | Learner| Assessor| | Assignment Title : The Long Term Effects of Exercise on the Body| | | 2| Paint a picture of the long-term effects of exercise on the Muscoskeletal system. Include: Hypertrophy, Increase in Tendon Strength, Increase in Myoglobin Stores, Increased Mitochondria, Increased Glycogen and Fat Stores, Increased Muscle Strength, Increased tolerance to Lactic Acid, Increased Bone Calcium, Increased Ligament Stretch, Increased thickness of Hyaline Cartilage, Increased production of Synovial Fluid. (e. g. ) Muscle Hypertrophy – The size and bulk of the muscles increases.Use of the muscles causes them to tear through stress. The muscle tissue repairs itself and makes the muscle tissue bigger as a resultGive further details and provide reasons (Where appropriate). (e. g. ) Muscles become more efficient at using oxygen as a result of training. More Mitochondria are produced in muscle cells. These are the site where energy is produced and if more sites are available then more energy can be produced and therefore the muscles are able to work for longer due to the increased energy that is available to them. | | 3| Paint a picture of the long-term effects of exercise on the Energy systems. Include: Increased Aerobic and Anaerobic Enzymes, Increased use of Fats for energy. (e. g. )More Aerobic Enzymes are produced through aerobic exercise. These are able to breakdown glucose more effectively and efficientlyGive further details and provide reasons (Where appropriate). (e. g. )More Enzymes are also available to breakdown Fats. More body fat can be stored in muscles as a result of training. The enzymes mean that more fat can be used as an energy source, meaning that the athlete can compete for longer. | | 4| Give further details and provide reasons (Where appropriate) of the changes that happen to the Cardiovascular System. Include: Cardiac Hypertrophy, Increases in: Stroke Volume / Cardiac Output. Decrease in Resting Heart Rate, Capillarisation, Increase in blood volume, Reduced Resting Blood Pressure, Decreased recovery time and increased aerobic fitness. (e. g. )Cardiac Hypertrophy is when the heart muscle increases in size. The cardiac muscle in the Left Ventricle increases in thickness and is able to contract more forcefully.Like any other muscle, through stress from repeated training the heart responds by increasing in size. This affects Stroke Volume as the heart is able to pump more blood out with every beat at rest. In turn this affects Cardiac Output. | | | 5| Give further details and provide reasons (Where appropriate) of the changes that happen to the Respiratory System. Include: Increased -Vital Capacity/Minute Ventilation/Strength of Respiratory Muscles/Oxygen diffusion rate. (e. g. )Like the heart muscle the breathing muscles increase in size and become stronger through endurance training.The diaphragm and Intercostal muscles become stronger allowing the chest cavity to be able to expand more allowing more air and therefore oxygen to enter the lungs. Getting more oxygen into the lungs means that this can be converted into more energy. Therefore, endurance performers can last for longer| | | USE IMAGES TO MAKE YO UR WORK INTERESTING| UNIT 2 THE PHYSIOLOGY OF FITNESS TASK 3 (P5/M3/D1) Investigating the effects of Exercise SCENARIO You have been asked to collect physiological data from the Sixth Form Sports Teams to assess the effects of exercise on the players within the teams.Make sure that you include the following: * Collect Physiological Data to investigate the effects of exercise on the muscoskeletal, cardiovascular, respiratory and energy systems, with tutor support (P5) * Collect Physiological Data to investigate the effects of exercise on the muscoskeletal, cardiovascular, respiratory and energy systems, with limited tutor support (M3) * Independently investigate the effects of exercise on the muscoskeletal, cardiovascular, respiratory and energy systems. (D1) START DATE: HAND-IN DATE: START DATE: HAND-IN DATE: UNIT 2ASSESSMENT TASK 3 (P5/ M3/D1). HELPSHEET GRADING CRITERIA PASS| MERIT| DISTINCTION| P5: Collect Physiological Data to investigate the effects of exercise on the muscoskel etal, cardiovascular, respiratory and energy systems, with tutor support| M3: Collect Physiological Data to investigate the effects of exercise on the muscoskeletal, cardiovascular, respiratory and energy systems, with limited tutor support| D1: Independently investigate the effects of exercise on the muscoskeletal, cardiovascular, respiratory and energy systems| USE OF KEY VERBSVERB| PLAIN ENGLISH| Investigate| To search out and look at the particular features of something. (e. g. )To search for the reasons why a team was defeated. This may be due to individual errors, a collective poor performance, a superb piece of play from the opposition etc†¦.. | NO. | Learner Checklist(Steps to Success)| TICK WHEN COMPLETE| | | Learner| Assessor| 1| Assignment Title: Investigating the effects of exercise| | | 2| Use some of the following types of exercise as the basis for investigating. (e. g. ) Aerobic, Resistance, Circuit, Interval. | | 3| Collect Pre-Exercise, Exercise and Post Exerci se and Physiological readings. (e. g. ) Heart Rate, Percentage of Maximum Heart Rate, Rate of perceived exertion, Blood Pressure, Flexibility, Spirometry. | | | UNIT 2 THE PHYSIOLOGY OF FITNESS ASSESSMENT TASK 4 (P6/M4/D2) Reviewing Physiological Data SCENARIO Now that you have collected your data from the sixth form sports teams you need to conduct a review of the data, using the data that you collected to look at the effects of exercise on the body. Make sure that you include the following: REVIEW physiological data collected, DESCRIBING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems. (P6) * REVIEW physiological data collected, EXPLAINING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems. (M4) * REVIEW physiological data collected, ANALYSING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems. (D2) START DATE: COMPLETION DATE: START DATE: COMPLETION DAT E: UNIT 2 ASSESSMENT TASK 4 (P6/M4/D2). HELPSHEET GRADING CRITERIA PASS| MERIT | DISTINCTION|P6: REVIEW physiological data collected, DESCRIBING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems| M4: REVIEW physiological data collected, EXPLAINING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems| D2: REVIEW physiological data collected, ANALYSING the effects of exercise on the Muscoskeletal, Cardiovascular, Respiratory and Energy systems| USE OF KEY VERBS VERB| PLAIN ENGLISH| Describe| Try to â€Å"Paint a picture† in words. Assume that the person that you are Describing to does not know anything about the subject that you are describing.Tell them what you have learned. | Explain| Once you have Described the subject, often you will need to give further details and reasons why. (e. g) Once you have described England’s poor performance in the World Cup, you may also give some reasons w hy the players did not perform as well as they could. | Analyse| You need to SELECT the KEY POINTS and EXPLAIN each point providing REASONS for each point and also looking at POTENTIAL IMPACTS. (e. g. ) If you were looking at the performance of Barcelona you may pick out the key points in their success – Money, Lionel Messi, Iniesta etc..You would then explain the contribution of each player and also look at what the club could do to regain the Champions League next season| Review| Provide some feedback. Maybe focusing on good and bad points that you have noticed. | NO. | Learner Checklist(Steps to Success)| TICK WHEN COMPLETE| | | Learner| Assessor| 1| Assignment Title: Reviewing Physiological Data| | | 2| Using the data that you collected from your participants:Paint a picture in words of the effects of exercise that you observed. (e. g. ) Participant A – Pre Exercise Heart Rate – 65, Exercise Heart Rate 175, Post Exercise Heart Rate – 125.The participa nt’s heart rate increased as soon as exercise began. It reached a maximum of 175 during the continuous run. This shows that Heart Rate does increase during exercise as the body attempts to increase the delivery of oxygen to the working muscles. | | | 3| Using the data that you collected from your participants:Provide further details and give reasons (where appropriate) for the effects of exercise that you observed. (e. g. )During the Warm-Up prior to the circuit training session, Performer B’s RPE was 3. After 3 stations on the circuit this increased to 5. By station 8, the score had further risen to 7.On the last station of the second circuit, RPE increased to 9. 10 minutes after the session had finished RPE was 5. This shows that RPE increased as the intensity of exercise increased as the performer was working progressively harder. | | | 4| Select the KEY POINTS from your data and give REASONS for each point. (e. g. )Heart Rate increases during physical activity. Thi s seems to correspond with a similar rise in RPE. As the sports performers’ heart and other body systems are working harder the performer can physically feel this change and therefore reports an increase in RPE.Consider: Practicality of exercise activities selected, advantages and disadvantages, strengths and areas for improvement. (e. g. ) The Coopers Run doesn’t cost much to carry out. It can be participated in around a field or alike. It can be carried out in a relatively short time, with quite a large group of participants. It requires minimal equipment. However, when carrying out the test it is vital with regard to reliability and validity that the distance which the run is being taken has been measured accurately. Otherwise, participant’s results can be false. | | | USE IMAGES TO MAKE YOUR WORK INTERESTING|

Research Paper on Fast Food Essay

1. 1 INTRODUCTION Fast food is generally food or a meal which is pre-prepared, or which can be quickly cooked when you order it. You can buy fast food almost anywhere. Although fast food trend is quite new in Pakistan yet it is growing very fast, this indicate that such type of fast food restaurant have a very bright future in Pakistan . The two major fast food restaurants that have their outlets in the whole world, are giving tough competition to each other in Pakistan. Our research is based on the hypothesis that why people in Pakistan prefer KFC over Macdonald and we found that due to good quality and taste of food people prefer KFC . When KFC was introduced in Pakistan the prices was not affordable by people but now they have lower their prices. One reason was also the impressive packages due to which people prefer KFC over McDonald’s. While conducting our research we also came to know that KFC is more advertised this is one of the reasons that people prefer KFC over McDonald’s. We are going to discuss all of this in our research. 1. 2 HYPOTHESIS KFC is a spot light and McDonald’s is a side show. 1. 3 AIMS AND OBJECTIVES The trend of fast food is increasing day by day in Pakistan, this research is designed to generate knowledge about fast food restaurant in Pakistan, and hence this research is based upon two leading fast food brands in Pakistan. The main objective is to know that which brand is popular among majority. Which among the two brands is of higher quality. Which brand is more economical . Hence in general we conducted this research because we wanted to know that which brand is preferred and what is the reason behind it. 1. 4 SAMPLING In sampling plan we draw sample, sample is basically a segment of the population selected for research to represent the population as a whole. In our research we targeted people from 18 to 30 . So we approached people who visit KFC and McDonald’s . Our sample size is 40 from the whole population . Our research instrument for collecting primary data is Questionnaire in which we ask twenty questions, all are close ended for accessing people’s preference. 1. 5 METHODOLOGY The empirical analysis of the â€Å"International fast food chains in Pakistan† was based on the primary data collected through personal observations by visiting KFC and McDonald’s located in the twin cities of Rawalpindi and Islamabad. The data were collected by filling questionnaire during rush hours in the afternoon between 12:00 noon to 2:00 p. m. In all, 40 customers were accounted for during the survey time period in KFC and McDonald’s. The data were collected during the first week of January 2010. 1. 6 LITERATURE REVIEW First we will take into account the history of KFC. The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952, though the idea of KFC’s fried chicken actually goes back to 1930. The company adopted the abbreviated form of its name in 1991. Perfecting its secret recipe of 11 herbs and spices in 1939, KFC has come a long way. With over 10,000 outlets in the world, KFC has maintained its title, for the last 60 years, of being the chicken Experts. Now we will discuss the history of McDonald . At one time it was the largest global restaurant chain, but it has since been surpassed by multi-brand operator, in the competitor KFC is on top of the list. The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955. Now McDonald’s is present in 120 countries with about 32000 outlets. Market entry in Pakistan was not a big problem for KFC as it is a well-known international brand. In that stage they did promoted through their own brand. Their promotion statement was â€Å"KFC in Pakistan†. Opening the first KFC outlet in Gulshan-e- Iqbal in 1997. KFC wore the title of being the market leader in its industry. Serving delicious and hygienic food in a relaxing environment made KFC everyone’s favorite. Since then, KFC has been constantly introducing new products and opening new restaurants for its customers. Presently KFC is branched out in nine major cities of Pakistan (Karachi, Lahore, Gujranwala, Sukkur & Muree) with more than 45 outlets nation-wide. Apart from fulfilling our commitment of serving delicious, fresh and hygienic food and at the same time providing our customer with the ultimate entertainment; KFC also plays in the economics development of our country. Presently KFC has provided to over 1200 Pakistanis, which adds up to 6000 individuals directly dependent in KFC Pakistan. In introduction stage KFC entered the market using market-skimming strategy. Their products were high price and targeted only upper class. Later they introduced packages which were affordable by many people. McDonald’s Pakistan opened its doors in September 1998 at Lahore and presently operating in seven major cities with a network of 20 restaurants. With a strong belief in the Ray Krock phrase when you are green you are growing, McDonald’s Pakistan has an aggressive plan to expand in all other cities of Pakistan and is rapidly growing with the focus to provide friendly and quick service restaurant experience to their customers. Today millions of Pakistanis place their trust in McDonald’s everyday to provide them with food of a very high standard as well as good service. In the past five years, the response to McDonald’s coming to Pakistan has been overwhelming. McDonald’s located in Pakistan are currently employing about 1,000 Pakistanis and each store is managed by Pakistani managers. They have also contributed in other ways than food service. McDonalds has investment of over Rs 300 crore in the country and payment of taxes and duties amounting to more than Rs 100 crore. Since McDonald’s is doing so well in Pakistan they will continue to grow and add more stores in more cities in the future. But in Pakistan McDonald’s is facing a tough competition by KFC. KFC and McDonald’s serve to dominate the fast food business in Pakistan. Both fast food chains serve all their customers effectively, given the different categories and factors that determine the success of restaurants and fast food chains in Pakistan. However, based on the findings of the previous research, it can be perceived that KFC is running a more successful business in Pakistan, compared to the business run by McDonald’s. This was given proof in the article, based on the many and varied responses of customers to surveys, which involve their evaluation of both fast food restaurants, based on a number of factors, namely, food, service, environment, price, convenience, brand, and promotion. In terms of food, although both fast food restaurants almost have the same varieties, certain differences can still be recognized. Both KFC and McDonald’s offer chicken and hamburger meals including snacks, desserts, and drinks. However, only KFC offers a wide range of healthy side dishes, such as mashed potato, carrot muffin, and lotus fresh vegetable side dishes. In this sense, KFC aims to uphold healthy eating and nutrition of their customers. In addition, it has been emphasized in the case study that KFC appeared to have the upper hand over McDonald’s in terms of introducing new products in the market. Most of the new products of KFC, such as its lunch items, suit the tastes of the Pakistani. KFC has also been introducing new products in the market in a regular rate. In terms of environment and service, although both fast food restaurants appeal to their market due to their convenient lighting, cleanliness, music, and decorations, still, KFC serves to have the upper hand over McDonald’s. Based on the survey, more customers are â€Å"Very Satisfied† with the services and environment of KFC over McDonald’s. This is because the waiting time in McDonald’s is too long, compared to KFC. In addition, it can also be perceived that KFC has more advantage than McDonald’s, as the employees in KFC have less time to interact with customers than its counterpart, as the volume of its business is larger. The prices of food offered by both restaurants equally serve each other. However, the food offered by KFC is slightly higher, being able to offer some meals that are not offered by McDonald’s, such as the Family Bucket, Garden Chicken Burger Meal, and Hot & Spicy Wing Meal. Nevertheless, the volume of customers in all given times of day, in both weekdays and weekends is still higher in KFC than in McDonald’s. Given such figures, it can be perceived that more customers prefer KFC to McDonald’s, thus, indicative of the fact that KFC runs a more successful business than its counterpart does. Moreover, the findings of the study indicate â€Å"More low income and high income customers prefer KFC to McDonald’s, while average income customers prefer McDonald’s more than KFC† In this sense, it can be observed that KFC has a wider range of customers compared to McDonald’s, thus, indicating that more customers patronizes KFC. Furthermore, for the finale, the proof that KFC is running a more successful business than McDonald’s is indicated that not just in Pakistan KFC has an upper hand but in all over the world. 1. 7 DELIMITATIONS. The problem which we faced while conducting our research are firstly the people were not very co operative in order to fill our questionnaire and we have to convince them. Another problem was that people were hesitating to fill our questionnaire. 1. 8 DATA COLLECTION Q1) What is your age group? As we have taken our sample between 18-32. So the people who have filled the form have age between 18 to 32. Q2) What is the reason of eating fast food? Q3) How often do you use fast-food services? Q4) What’s your favorite fast food place? Q5) Rate the fast food you have visited the most? (3 being high and 1 being low). Q6) Which one is your favorite meal? Q7) What fast food restaurants do you think is most advertised? Q8) Which fast food chain is in your opinion is more healthy? Q 9) How favorable is your attitude towards the fast food brands you have eaten? (3 being high and 1 being low) Q10) How well the following brands satisfy your needs? (3 being high and 1 being low) Q11) Which brand packaging has an attractive look? (3 being high and 1 being low) Q12) Which fast food restaurant has an eye-catching outlook? Q13) Which brand do you think bring pleasant memory? (3 being high and being low) Q14) Which brand do you think earns pleasant money? Q15) On Average how much would you expect to pay for a fast food meal? Q16) Apart from food which place is more enjoyable? Q17) Which fast food restaurant is more accessible? Q18) Which brand offer deals which have attractive prices? Q19) If you owned your own fast food restaurant, then which fast food restaurant attribute you want to follow-up? 20) Do you think the future of international fast-food chains in Pakistan is bright? 1. 9 DATA ANALYSIS Q1) What is your age group? As we have taken our sample between 18-32. So the people who have filled the form have age between 18 to 32. Q2) what is the reason of eating fast food? The main reason that people eat at fast food restaurants is because they like the taste. Customer wouldn’t keep coming back to a restaurant if the taste of food does not satisfy their tongue. As pie graph shows that 82% prefer taste, 13% prefer convenience and 5% price, hence price and convenience element occupies a very small part of it, only the good taste allows and agree people to spend their money on food. Q3) How often do you use fast-food services? 54% visit once a month 12% visit once a year and once a week. 17% twice a week and 5% visit other time. It looks like most of the people go out and eat fast food once a month. In a close second place people visit fast food restaurants twice a week. So pie graph result shows that people like to eat fast food, but just at different interval of time. Q4) What’s your favorite fast food place? There are tons of different fast food restaurants around the world, but we narrowed down the choices to McDonald’s and KFC. According to the people’s choice 80% people like KFC while only 20% McDonald’s. KFC dominates over McDonald’s, other questions also represent that people are more likely towards KFC services. Q5) Rate the fast food you have visited the most? (3 being high and 1 being low) 62%of the people prefer to visit KFC while only 15% prefer McDonald’s. KFC are the first movers of fast food restaurant in Pakistan hence they have first mover advantage. They were the pioneer of fast food in Pakistan. The position of KFC in the mind of people is very strong. Q6) Which one is your favorite meal? We gave various choices of food offered by both restaurants. We restrict people only to choose one food item which is one of their most favorite According to the result 52% people like KFC chicken and 43%burger and 5% salad. While McDonald’s salads were liked by 45%, 30% burger and 25% chicken pieces. Q7) What fast food restaurants do you think is most advertised? The survey shows a slight difference between the advertisements of both restaurants. As they are leading fast food restaurants in Pakistan so they advertised almost equally to make their roots strong in promoting their service. According to the data 57% people think KFC is more advertised and 43% found McDonald’s is more advertised. Q8) Which fast food chain is in your opinion is more healthy? 67% people think that KFC is healthier. People have positive approach towards KFC because KFC food has less chronic health risks because its meal involves appropriate amount of nutrients. Q9) How favorable is your attitude towards the fast food brands you have eaten? (3 being high and 1 being low) 55% people rated KFC at 3 place, 37% people at second and 8% people at first place. But MacDonald’s result differ 13% people rated KFC at 3 place, 37% people at second and 50% people at first place. As results undoubtedly shows the people have favorable attitude towards KFC. Q10) How well the following brands satisfy your needs? (3 being high and 1 being low) 50% people are fully satisfied with KFC, 40% people satisfied and 10% people are just satisfied. But MacDonald’s result differ 15% people are fully satisfied, 35% people are satisfied and 50% people are just satisfied. Q11) Which brand packaging has an attractive look? (3 being high and 1 being low) In brand packaging McDonald’s took prize over KFC. The surveys result shows that 62%people like McDonald’s packaging style while only 27% people like KFC packaging style. Q12) Which fast food restaurant has an eye-catching outlook? Although in other aspects KFC has surpass McDonald’s but when it comes to the outlook of the restaurant 63% people like the outlook of McDonald’s and only 37% people rated KFC. Q13) Which brand do you think bring pleasant memory? (3 being high and being low) Pleasant memory associated with good environment of the place and taste of the food. After analysis it was found that 60% people’s pleasant memory is associated with KFC. 32% people have KFC. 8% do not have as much pleasant memories as others. Q14) Which brand do you think earns pleasant money? 55% people views show that KFC earns pleasant money. And in a close second place 45%rated McDonald’s. Q15) On Average how much would you expect to pay for a fast food meal? 55% people expect to pay an amount of at least Rs. 500 on fast food meal. 30% agreed on paying Rs. 1000 while only 15% want to spend Rs. 1500. Q16) Apart from food which place is more enjoyable? The popularity of any restaurant is just not dependent upon the taste and price of food but it also depend upon the enjoyable environment which include play area for kids, happy meal and gifts. 52% people consider McDonald’s is more enjoyable but 48% people like the environment of KFC. Q17) Which fast food restaurant is more accessible? The result of this question shows an even split among both options. The increasing trend of fast food leads both restaurant branches to multiply in order to make them easy to get to. 53% people think KFC is more accessible while 47% think that McDonald’s is more accessible. Q18) Which brand offer deals which have attractive prices? The higher percentage of people found the prices of KFC more attractive than McDonald’s. According to the data 55% people found prices of KFC affordable and attractive. While that of 45% found McDonald’s prices smart. Q19) If you owned your own fast food restaurant, then which fast food restaurant Attribute you want to follow-up? The majority results show that KFC has won the race in our fast food survey. It is found that KFC fulfill the needs of its customers to some extent, so considering KFC as their ideal people would like to follow the success tracks of KFC in order to have bright future of their restaurant ahead. 75% people like to follow the attributes of KFC for their own restaurant and only 25% consider McDonald’s as their ideal. Q20) Do you think the future of International fast food chains in Pakistan is bright? Based on people answers, 85%agreed with the statement that the future of international fast-food chains in Pakistan is bright, 5% were not agreed on bright future and 10% people have no idea about this. With today’s hectic lifestyles, time-saving products are increasingly in demand; one of the most obvious examples is fast food. People want quick and convenient meals as a result, consumers rely on fast food . Knowing this, fast food providers are coming up with new ways to market their products that save time for consumers. All that make sense though because that is what â€Å"fast food† is supposed to mean†¦cheap, fast, and tasty. 1. 10 CONCLUSION The conclusion we have drawn after conducting our research is that the problem statement which we consider in our research is confirmed . Our hypothesis that KFC is in spotlight and McDonald’s is a side show was right and people prefer KFC over McDonald’s because of their good quality food and their reasonable price, hence KFC capture a large market than McDonald’s in Pakistan. 1. 11 RECOMMENDATION AND SUGGESTION After conducting our research we come to a point that about 80% people prefer KFC over McDonald’s here are some suggestions and recommendations to both the brands. Based on our research we suggest that McDonald’s should improve the quality of their food because majority of people found McDonald’s a less healthy option. It was also found that Macdonald’s satisfies the need of people to lesser extent, so McDonald’s should try hard to make up to the expectations of people. It was found by our research that although people prefer KFC over McDonald’s but they found the packing of McDonald’s more attractive than that of KFC, so KFC should work on their packing and make it more attractive. When it comes to outlook of the restaurant, majority of people like the outlook of KFC, so McDonald’s should improve their outlook. It was also found that KFC is better advertised; hence McDonald’s should work to promote their brand in order to capture a large volume of customer. Pakistan is a price sensitive market for many items and competition is intense, so McDonald’s should maintain their price packages. REFERENCES ? Haider Tayyab, KFC McDonald’s Food Quality Comparison, 12, 10, 2002 http://www. bandt. com. au/kfc-macdonald-food-quality-comparison/5d/0c01585d. asp ?Jekanowski Mark, McDonald’s versus KFC who will win, 7,6,2009, http://movementarian. com/2009/06/07/mcdonalds-versus-kfc-who-will-win/ ? Johnson Michel, McDonald’s History, 2,21,2003, http://mcdonalds2. rozee. pk/content. php? lid=TWpJd09BPT0rQQ== ? Keems Jack, KFC and McDonald’s comparison, 11,22,2007 http://findarticles. com/p/articles/mi_m0887/is_11_22/ai_111023412 ? Rehman Hameed, 2005, International Fast Food Chains Statistics, Khabarnama News ? Velazquez Allin, KFC and McDonald’s in Pakistan, 11, 11, 2009, http://ivythesis. typepad. com/term_paper_topics/2009/11/kfc-and-mcdonalds-in-pakistan. html.

A Love After God’s Own Heart Essay Example for Free

A Love After God’s Own Heart Essay Christianity (938) , Love (815) , God (498) , George Eliot (15) , Silas Marner (6) , Eppie (5) Haven't found the essay you want? Get your custom sample essay for only $13.90/page ? What is the foundation of Christianity? If the question being discussed is whether something is ideally Christian, then the motivation behind Christianity must be understood. The basic outline of Christianity is simple. Man exists in a fallen and depraved state. Christ died on the cross to conquer death and atone for all humanity. Those who acknowledge their need for a Savior and place their faith in this gift, shall have eternal life. That leads to the logical question of why. Why should Christ sacrifice himself for such undeserving people? Therein is found that basis, that motivation behind Christianity. Love. The Bible says, â€Å"For God so loved the world that he gave his only begotten Son, that whoever believes in Him shall not perish but have eternal life.† (NASB Jn. 3.16). Love is the heart of Christianity. God sent his Son to pay the ultimate cost for sinners because He loves them so much. Indeed, all truly Christian actions are committed out of out of love. Christ said while he was on the earth, â€Å"By this all men will know that you are My disciples, if you have love for one another.† (NASB Jn. 13.35) Christianity starts and ends with love. Love is the root of Christianity and it is also the outward manifestation of Christ in a life. God is love. Therefore, though Silas Marner is at first estranged from both God and man, the Christ-mirroring love he bestows upon Eppie is a clear reflection of God’s own nature and is ideally Christian. George Eliot’s Silas Marner details the life of a solitary linen weaver. Silas Marner lives a life of seclusion in the town of Raveloe for 15 years while dealing with deeply inflicted emotional wounds. He loses his faith in God and his fellow man. Marner’s lone refuge is the coins he earns. He treasures them not for their monetary value, but for their companionship. Meanwhile, there is an alternate storyline of Godfrey and Dunsey Cass; sons of a wealthy landowner. The latter is a slobbering drunk while the other is well thought of. However, the former has a secret wife and child, and the knowledge of this allows the drunk to blackmail his elder brother. One day the drunk chances upon the empty house of the linen weaver. He discovers the coins and steals them. When Silas Marner discovers his loss, he elicits the help of the villagers. They search extensively for the coins, but to no avail. No one knows who has taken the coins, but Godfrey is delighted by Dunsey’s absence. On New Year’s Eve, the Cass family throws a large party and Godfrey attempts to woo the respected Nancy Lammeter. Meanwhile, Godfrey’s wife tries to bring their child to the Cass home and proclaim Godfrey’s secret to the world. However, being under the influence of opium, she falls asleep on the snowy ground. The child wanders into the nearby house of Silas Marner. When Marner finds the child and eventually the mother, he rushes to the Cass house for the doctor. The woman is found to be dead and as no father comes forth for the child, Marner claims it as his own. He names the child Eppie and does his best to raise her. He is often given motherly advice by his friend Mrs. Winthrop. Sixteen years go by and Eppie is now 18. Godfrey is married to Nancy. Godfrey regrets not claiming Eppie and decides it is time for her to come live with them. He tells Silas and Eppie the truth and asks Eppie if she wants to come live with him and his wife. Eppie declines, saying Silas is the only father she has known. Later, while a pit is being drained near Silas’ house, the body of Dunsey is discovered and with it Silas’ money, which is returned to him. Silas uses the money to return to his old home for closure on his past wounds, but the entire place is gone. When Silas returns, Eppie gets married to Mrs. Winthrop’s son and the story concludes with Eppie and her husband living happily with Silas. The child Eppie does not have a father, so Silas Marner adopts her as his own. Eppie quite literally wanders into Silas’ life and though she should not have to be his responsibility, he takes it upon himself to be her father. â€Å"Till anybody shows they’ve a right to take her away from me,† said Marner. â€Å"The mother’s dead and I reckon it’s got no father: it’s a lone thing- and I’m a lone thing† (Eliot 679). Though he shows it in his own peculiar way, Silas takes great compassion on this homeless, parentless girl. This is the first way Silas Marner shows God’s love to Eppie. God is obviously not a â€Å"lone thing,† having existed for eternity past in perfect harmony with the Trinity. However, he does take compassion on poor, lost people. God is the Father to all who place their faith in Jesus Christ. â€Å"For you have not received a Spirit of slavery leading to fear again, but you have received a Spirit of adoption as sons by which we cry out, Abba! Father! The Spirit himself testifies with our Spirit that we are children of God† (NASB Ro. 8. 15-16). Silas Marner adopts Eppie and becomes her father who she can always rely on. God adopts sinners who come to him and becomes their Everlasting Father in whom they can rely. The clear correlation between the two is the first way Silas Marner reflects God’s nature and ultimately Christian ideals. As Silas has this Christ-like love for Eppie, he naturally wants to protect her and help her grow. This gives Silas a completely new outlook on his surroundings and his normal everyday life. â€Å"As some man who has a precious plant to which he would give a nurturing home†¦and asks industriously for all knowledge that will help him to satisfy the wants of the searching roots, or to guard leaf and bud from invading harm† (689). Silas’ new role is to do all he can to keep Eppie safe. Eppie is young and inexperienced and vulnerable. Silas watches out for her and keeps her away from trouble because he knows better. Jesus Christ does the same thing for believers. He protects Christians from the Devil’s schemes as well as from their own folly. The Bible often describes this relationship with the analogy of a shepherd and his flock. â€Å"Like a shepherd He will tend his flock, In his arm he will gather the lambs and carry them in His bosom; He will gently lead t he nursing ewes† (NASB Is. 40.11). Silas is gently leading his nursing ewe, Eppie. Silas, in protecting and shepherding Eppie, is portraying distinctly Christian ideals. Eppie does not do anything to gain Silas’ love and likewise she can do nothing to lose it. Before she does any of the things that Silas later comes to love, Silas loved Eppie. Silas loves her from the first night she toddled into his home. She does not earn his love, it is based on Silas’ goodness and not Eppie’s merit. That is why she cannot lose it. It does not depend on her performance. â€Å"Here was a clear case of aberration in a christened child which demanded severe treatment; but Silas, overcome with compulsive joy†¦could do nothing but snatch her up and cover her with half sobbing kisses† (687). This is such a beautiful picture of what Christ does for the believer. Eppie runs off and disobeys Silas. He tirelessly pursues her until he finally catches her. Christians likewise stray from the fold of God, but Christ pursues them and is overjoyed to find them and bring them back. â€Å"If any man has a hundred sheep and one of them has gone astray, does he not leave the 99 on the mountains and go and search for the one that is straying? If it turns out that he finds it, truly I say to you, he rejoices over it more than over 99 which have not gone astray† (NASB Mt. 18.12-13). This is how Silas feels for Eppie. Silas mirrors God with his unmerited and unconditional love for his daughter. Silas loves Eppie so much he is willing to sacrifice his happiness for her betterment.   Silas on the other hand, was again stricken in conscience and alarmed lest Godfrey’s accusation should be true- lest he should be raising his own will as an obstacle to Eppie’s good. For many movements he was mute, struggling for the self-conquest necessary to the uttering of the difficult words. They came out tremulously. â€Å"I’ll say no more. Let it be as you will. Speak to the child. I’ll hinder nothing. (714) Godfrey has now come and is asking Eppie to come live with him and his wife. Eppie is the absolute joy of Silas’ life. Even so, with those words, Silas is letting her go. He is relinquishing his daughter and his happiness that she might have a higher station in life. This is a truly sacrificial love. This again is in keeping with the Christian model Silas has been following all along. â€Å"But he was pierced through for our transgressions. He was crushed for our iniquities; The chastening for our well-being fell upon him and by his scourging we are healed† (NASB Is. 53.5). The greatest sacrifice of all is Jesus’ death on the cross. Obviously Silas Marner is not crucified for Eppie, but he is willing to sacrifice his entire happiness for her betterment. Silas’ small sacrifice is a shadow of the Lord’s great sacrificial love for his people and clearly Christian. Sometimes this story is thought to have too many coincidences or be too much like a fairy tale to have realistic Christian ideals, but the Bible clearly disproves this. God is in control and He has a plan for everything. There are no coincidences in His eyes. It is not a coincidence that Eppie comes to Silas’s door. Silas then honors God with love he shows Eppie and God rewards him with happiness and fulfillment. It is a lie of the Devil that happy endings are only for fairy tales. Christians know Jesus wins in the end over evil. That is the happiest ending of all. â€Å"For I know the plans that I have for you,† declares the Lord, â€Å"plans for welfare and not for calamity to give you a future and a hope† (NASB Jer. 29.11). When the Christian is trusting in God’s plan and honoring Him, he can see that Silas Marner is a great story about a man who honored God with his love. Silas Marner’s love for Eppie is adoptive, protective, unconditional, and sacrificial. This clearly reflects the Lord’s love for his own children and thus the ideals in this novel are Christian. Works Cited Eliot, George. â€Å"Silas Marner.† Adventures in Appreciation. Laurence Perrine. Ed. et al. New York: Harcourt Brace Jovanovich, Inc., 1973. 390-472. Print. NASB. Anaheim: Foundation Publications Inc., 1996. Print. A Love After God’s Own Heart. (2017, Jan 09).

Utilizing Export Management Companies Essay Example | Topics and Well Written Essays - 750 words

Utilizing Export Management Companies - Essay Example The purpose of this paper is to analyze five sources of information for new exporters, and explain the definition of some international trade terms as on the globalEDGE website. Exercise 1: Sources of Information for Exporters 1. Export.gov, http://export.gov/ Export.gov is by far the most diverse information source for both new and established exporters. The site has information on how exporters can obtain market research information for a product or industry of interest. The vast information source also helps exporters with the networking and promotion of their products. International trade fairs are incredible ways through which exporters can promote their products. Export.gov provides information on international trade events to help exporters popularize their products in targeted foreign markets. In its relentless effort to be a choice destination for seekers of incredible export information, Export.gov has prepared export readiness questionnaires for new exporters. In addition, the export information source also provides information on the protection of intellectual property rights in international territories. In pursuit of this highly sensitive aspect of globalised trade climates, export.gov provides information on issues such as antipiracy campaigns, process of obtaining international patents, trademarks or copyright, and ways in which exporters can file intellectual property right cases. 2. Directorate of Defense Trade Controls (DDTC), http://www.pmddtc.state.gov/ Before an exporter can venture in export activities, it is vitally important to obtain the necessary legal documentation. Before taking steps to obtain licenses and permits relating to the export of a good to a particular country or territory, it is imperative to confirm which government entity is charged with the role of issuing the relevant documentations. Directorate of Defense Trade Controls (DDTC) fills this vital role. The licensing of many export commodities falls under the DDTC. The DDTC website also provides information on export policies, regulations and embargoes applicable to the country of export. 3. Statistical Yearbook, http://unstats.un.org/unsd/syb/ Market information on product market and economic state of the target market is of vital importance in the export business of any kind. The Statistical Yearbook is a rich information source which is a brainchild of the United Nations (UN). The site has valuable information on a staggering 550 commodities from over 200 countries and territories. The information is mainly about on the economic and social aspects on the countries and territories listed. 4. Deloitte International Tax Source(DITS),http:www.dits.deloitte.com/ The tax implications associated to a particular line of trade in a certain country can determine the viability of the export business venture. Deloitte is one of the top international consultancy and accounting firms in the world. As such, the firm has wealth of information on the tax practi ces in many countries and territories around the globe. The DITS website offers a wealth of information on international tax rates and policies, and provides regular updates on any changes in tax laws. The expansive information source provides information on over 60 countries in the world. The extensive tax information could be of immense importance to many would be and existing exporters. 5. Commercial News USA (CNUSA), http://www.thinkglobal.us/ This is one of the best

Curriculum Development Assignment Essay Example | Topics and Well Written Essays - 7000 words

Curriculum Development Assignment - Essay Example Prior studies have acknowledged that GCSE students have a limited knowledge of science (i.e., concerning medicine and drugs) with no positive reception of the responsibility played by scientists ideas in guiding inquiry. Therefore, this study tests the argument that the GCSE students can make significant progress in developing a more refined, constructivist epistemology of science, if given a Kagan structure was used in school science curriculum (Kagan, 2004,p.1606). In this essay I chose to objectively discuss the Kagan structure on cooperative learning versus independent learning. In this case, the two class units taught will be medicine and drugs using the two methods to determine which one is more effective (Kagan, 2008,p.5). This will help to provide information concerning how GCSE students can further progress in methods of teaching. On the same note, the essay will helps one to identify aims of what is to be discovered and achieved. Also there will be a reflective account and discussions of findings and data analysis based on engagement, attitude and motivation. The rationale behind this Kagan structure is that those teachers who try it find it easy to make their students understand learning procedures and it also make it easier for teachers teach. Teachers confess that the structures have made more difference that any other innovation in teaching methods. Students on the other hand say that they are a fun to use while administrators report that it has led to positive outcomes to their schools and districts. In fact, the structures foster wide range of skills and virtues allowing learners to function successfully and with dignity in all in all of their life situations. This has helped in developing the whole student by inculcating thinking skills, social character and societal skills into the learners. In this regard, mission is to prepare students with the relationship

Culture and Socialization Essay Example | Topics and Well Written Essays - 1000 words

Culture and Socialization - Essay Example There is no easy way to break this ice because the elevator ride would be finished in a matter of few seconds therefore a comfortable silence is certainly one of the acceptable ways to handle the situation. At the same time, it seems inappropriate to make other people in the elevator a party to a conversation between two friends therefore it can be observed that the second rule is adhered to as well. More importantly however, the elevator is often a confined space which puts people in close proximity with each other and that is an invasion of private space. However a distance of 2-3 feet can be established in a reasonably sized elevator therefore people would probably try to give each other as much personal space as possible to avoid invading that personal space. Individuals in the same elevator may be aware of each other’s presence but it seems like they are completely ignoring the presence since there is little or no eye contact once a person getting on to the elevator has found a spot for him/herself. Since they are not looking at each other, they follow the fifth rule to look at the top of the door with the floor marker which could also add to the illusion of space within the elevator since there is often no one to block the view to the top of the door. Social norms give us the means and examples of behavior in situations which may not have codified laws for conducting ourselves. Carspecken (1996) uses the example of elevator behavior to show how norms work in western society and suggests that while behavior in close proximity with strangers can be explained in terms of meanings, norms is a better term because it is related to the word normal, i.e. normal expected behavior which is agreed upon by the rest of the social setup in a given location. Carspecken goes on to write that norms are, â€Å"certain modes of acting

Feature a female fitness competitor in Pittsburgh, PA Article

Feature a female fitness competitor in Pittsburgh, PA - Article Example When Sarah’s not delivering letters, she spends the majority of her time pursuing her passion: working to become a professional figure competitor, and she’s well on her way. Sara has competed in numerous figure competitions, including Miss Hawaiian Tropic 2004, Eugenia Swimwear Bikini Jam 2004, and the OCB Golden Triangle Battle for the Sword, while also developing her training clientele. Sarah works for various nutritional and fitness sponsors, flies around the country to model for companies like Bowflex, and even has time to maintain a website and a Twitter account1. Yet with all of this success, Sarah stays remarkably grounded. Colleagues and peers that know her say Sarah is outgoing and easy to work with, and that despite her success, her ego has not grown with her muscle mass. This humility in the face of achievements comes from the same place as her motivation to stay healthy: her childhood. Sarah describes her childhood as relatively normal with two supportive an d loving parents, yet she reveals that she struggled with her weight as a young child. â€Å"I was an overweight child,† she confesses. â€Å"My parents encouraged me to start exercising through athletics. I wasn’t so receptive at first.† This initial resistance faded as Sarah became involved with cheerleading at the local Catholic school she attended, and she eventually realized a passion for athletics. â€Å"Athletics in general have tremendously made my life more rewarding and fun,† Sarah says, and this love would carry her a long way. After realizing she had more of a drive to be on the court playing than on the sidelines cheering, and after noticing she was taller than the whole girls basketball team, Sarah decided to try out. This was when Sarah’s love of athletics turned into a passion. â€Å"Soon, I went from a lethargic chubby adolescent to a thin, happy, and athletic teen. I took it to the extreme.† Sarah would go on to play softba ll and run track in addition to playing basketball in high school, yet Sarah’s favorite and most accomplished sport remained volleyball. It was her skill in volleyball, her unyielding passion for athletics and competition, and her humility in daily life that took the talented young athlete from Pittsburgh out to California University in California, PA. Here she would further refine her athletic skill playing Division II volleyball, and here she would discover the work ethic and dedication that would get her out of the bed at 4:45am years later. Sarah describes the workouts as challenging, saying she would spend â€Å"hours on the court practicing,† but this practice would quickly pay off. In her sophomore year of college, Sarah earned what she describes as one of her most memorable honors. â€Å"Our team went to the Final Four my sophomore year of college,† she says. â€Å"It was a great experience that I will never forget.† Even in the face of overwhelmi ng athletic achievement, Sarah found the humility and energy to hit the books and stay grounded in her academic work. Sarah graduated from California University in 2003 with honors, and takes pride in earning her degree in Education while also being so competitive athletically. â€Å"I did really well in college,† Sarah explains, â€Å"and I graduated Summa Cum Laude.† Her academic and athletic excellence obviously made her a hot commodity for job recruiters after graduation. Of course, in Sarah’s typical highly motivated style, she didn’

Insights into Entrepreneurship Research Paper Example | Topics and Well Written Essays - 1250 words

Insights into Entrepreneurship - Research Paper Example The main essence of the modern organizations greatly lies within the specialization of diversified functions. Entrepreneurship is generally understood as the starting up of one’s own business. In accordance with the views presented by economist Joseph Schumpeter, entrepreneurship is essentially the entrepreneur’s initiative and drive for the improvement that results in the change and growth of the farm (Cuervo & et. al., n.d.). Entrepreneur is "a person with leadership, which take risks to exploit certain opportunities, are based more on their forces, develop its strategy based almost entirely by personal interests† (Burdus, 2010). In normal viewpoint, an entrepreneur is a person who creates a business and is ready to endure risk at any point and under any circumstances. They usually are initiative takers and innovative in their approach with an objective to earn profits. Furthermore, it has been ascertained that they are capable of allocating the resources in a u seful manner. Definitions of both entrepreneurship and entrepreneur show their comparisons. Entrepreneurship brings about the origination of primarily a farm or an organization that is created or established by an entrepreneur to continue with trade. Entrepreneurship represents the innovative function. Consequently, entrepreneur is the body that incorporates leadership skills and is capable of taking risks (Gutterman, n.d.). 1.1.2 Start-up Start-up founders are primarily the people who either register a business or simply establish something that might develop into a business. It has been observed that start-up founders are generally the entrepreneurs. The main difference lies between the start-up founders and entrepreneurs is the objective or goal. An entrepreneur commences a start-up business unit with the aim of generating value to stakeholders and shareholders. In order to derive utmost value, ethical and tactical approach of an entrepreneur is of high importance. In case of an entrepreneur of a start-up unit, the motive is constant i.e. financial growth. It has been further observed that failure of any start-up business and the entrepreneur’s fate are very closely related (Tenner, 2013). 1.2 Characteristics of an Entrepreneur Fast growing entrepreneurial organizations are in verge of absorbing candidates who continuously demonstrate the entrepreneur characteristics. It can be well observed that these entrepreneurial characteristics set the base of any organization. The various important characteristics of an entrepreneur have been explained in a detailed manner hereunder (Hadzima, 2005). Ability to Deal with Risk It is considered that an entrepreneur must be compatible enough to operate in an effective manner within the environment that is filled with risk. The entrepreneur becomes liable for building up strategies in order to deal with the any kind of risk and uncertainty. Moreover, an entrepreneur also endures the ability to formulate decisions t hat assist the employees in accomplishing the desired goals (Hadzima, 2005). Result Oriented It has been noted that the entrepreneur takes initiative in order to implement certain strategies for getting the work done by the employees. Furthermore, it has also been analyzed that an entrepr

Business Environment 2 Assignment Example | Topics and Well Written Essays - 1000 words

Business Environment 2 - Assignment Example Market structures, pricing and output decisions The key factors that influence British Airways pricing and output decisions include airport capacity, technology, fuel costs, costs of leasing or buying aircrafts and cost of labour. Accordingly, the route structure and distance of freight must be factored in the pricing decision. Network-Legacy Airlines use the Hub & Spoke model for the international flights, and long routes and mainly consider the number of passengers flying the route. For the domestic flights, British Airways flies directly to the destination airport and ensures a low-cost structure in the costing system (Stonehouse & Houston, 2013). The airline operates in a oligopoly market structure that is characterised by few large players that control the pricing decisions in the market. In this case, the airline must consider the strategic pricing decisions made by other competitor airlines. The airline industry in the UK is characterised by high barriers of both entry and exi t due to high capital outlay required to start operations and cumbersome regulatory environment. In addition, the dominant airlines enjoy considerable economies of scale of operations and price wars in order to attain high market share (Stonehouse & Houston, 2013). ... The company is agitating for the Open Skies policy that will enable its flights to access US airports and total liberalization of the aviation industry across the major markets. Market forces affecting British Airways Several market forces affect the operations of British Airways across the world. The pricing decisions are influenced by the supply and demand of air travel services in the particular geographical market. The airline has attained economies of scale in North American and European markets and thus has been able to implement a low-cost travel plan through its Iberia subsidiary. Accordingly, the industry is characterised by formation of strategic alliances and partnerships such as the SkyTeam and Star alliances that dominate the European market. The airline has entered in to partnerships with major sporting teams, logistic companies and hotels in order to provide full services to its customers. The company is currently increasing its presence in key international cities and building its leadership position in London. Accordingly, the airline has embarked on delivering differentiated services and attaining superior customer value for longhaul premium customers. The airline must improve its margins through creating new revenues streams in order to remain competitive (Stonehouse & Houston, 2013). Business and cultural environment of British Airways British Airways operations must comply with the business and cultural environment prevailing in the external market. The airline operates in stable political environment in the North American market and European countries. However, the current political turmoil in several Asian countries has hindered the operations of the airline in the affected countries thus leading to a decline

Business Continuity Planning Research Paper Example | Topics and Well Written Essays - 1000 words

Business Continuity Planning - Research Paper Example In 2007, Hewlett Packard conducted a study on the uptake of business continuity planning in some selected organizations. The results indicated that about â€Å"31% of small business† had no business continuity planning in place (Guy & Lownes-Jackson, 2011, p.55). This paper will explore how business can develop a business continuity plan to certify that they are prepared to face disruptive events that natural or manmade factors can trigger within the business environment. In this research paper, I will explore the steps that business can take to develop an efficient business continuity planning that will boost the preparedness to face disaster. In particular, the paper will delve on the steps that organizations must follow to arrive at a concrete and useful business continuity planning. First, the paper will explore first step called the initiation step where senior management of an organization meets and carry out a comprehensive review of the shortcomings in preparedness alo ng with evaluating available resources. Second, the paper will address the second stage—business impact analysis. The paper will reveal the value of business impact analysis and its execution. ... Lastly, the fifth section of the paper will detail how organizations carry out maintenance and testing of business continuity planning they have developed. Such a paper should provide significant insights on the process of business continuity planning and embed it as a core strategy that businesses can adopt to remain competitive in a world for myriads of factors can cause business to stop their operations. Business continuity planning Business operations are often at risk of disruption by threats from natural forces or human factors. For instance, terrorists attack on World Trade Centre and the Tsunami in Japan left many businesses with the lack of capacity to do any business operations (Adkins, Thornton & Blake, 2009). It is such threats that create a need for business continuity planning because this process allows business to resume their operations and sustain critical operations when an outage occurs (Wei. 2009). In order for an organization to have a business continuity plan i n place, it has to follow the five steps necessary in creating a Business continuity plan. a) Initiation the Plan This is often the first state of business continuity planning where the senior management of the organization meet, strategize, and evaluate the feasibility of the project. This meeting plays an integral role in allowing the managers to own the business continuity-planning project and dedicate various resources for its completion. In this meeting, the management will review the goals and objective of the project and align them with the business objectives of the organization (Rinehardt, 2010). In addition, the management must also identity

Your Description Essay Example for Free

Your Description Essay A. Background Very briefly describe yourself (age, birthplace, social class and status when you were growing up, current cultural orientation, etc.). I was born in San Francisco in 1985 to two young Israeli immigrants. I am the oldest of three and the only daughter. My family was Jewish but very secular, and our stance on religion and politics was liberal. I grew up in a middle to upper middle class suburb in the Bay Area where most of my friends were Catholic or Protestant. My current ideals have not strayed very much from my liberal upbringing, and I think that I lived somewhat of a sheltered, privileged life. However, the only thing that I may have lacked was growing up with an extended family nearby. B. Background of Parents/Grandparents/Great Grandparents ï‚ · Describe what you know about your mother, father, maternal and paternal grandparents and great grandparents and so on. ï‚ · How did your ancestors enter the United States (e.g., were they voluntary immigrants, involuntary through conquest, time of entry, etc.)? My mother grew up in a middle class neighborhood in Jerusalem, and my father was from a poorer family in the suburb of Haifa. They met during my mother’s army service, and, after she was released, they traveled around Europe for a few years. They began to feel cramped by Israel’s small borders and grew weary of the constant conflict that seemed to dominate its society. My mother inherited her US citizenship from my grandparents and had some family that still lived in California, so my mother and father immigrated to San Francisco in the late 70’s. My mother attended a master’s program at SF State, and my father worked as a maintenance engineer in one of the high-rises in the city. When my mother graduated from her program, they moved from a poor, predominantly black, neighborhood in the city to Walnut Creek to raise my brothers and me. My mother’s father was originally from Germany and escaped persecution during WWII by coming to the states with his family. In Germany, his household employed servants that took care of all the domestic work so that his mother never had to work. Her life consisted of having coffee with her friends in the morning and entertaining rich friends and businessmen at dinner parties. When Hitler came to power in Germany, they lost all their assets and immigrated penniless to the US. They settled in Chicago where  they had relatives, and for the first time in her life, his mother had to work. She had no formal education or professional skills but was happy to get a job in the garment industry as a seamstress. His dad got a job as a door-to-door salesman, and my grandfather, who was a teenager at the time, had to work in odd jobs to help the family. My aunt Ruth was too young to work at the time, so she went to the middle school in the area. My grandmother, the younger of the two sisters, lived in a very poor neighborhood in the Bronx during the depression. Her father worked as a garbage collector for the city, and her mother was a housewife. From what I recall, my grandmother’s parents moved to the states as immigrants from Poland and Russia during the pogroms after WWI. My grandparents were a part of a Zionist youth movement and met in Israel on a Kibbutz that they helped build. They were one of the first generations to move to Israel in 1948. They briefly raised their children under the socialist Ideals of Kibbutz Sasa before moving to Jerusalem, and my grandfather became the regional manager of a very successful jewelry company. I know far less history in regard to my father’s side of the family. From the information made available to me, his parents were Romanian and immigrated to Israel with very little family. They settled in Haifa where my grandfather worked in construction. My father suffered a large amount of physical abuse at the hands of my grandfather and ran away from home when he was 14. He stayed with his mother’s sister on a kibbutz in the north. When my father immigrated to the US, his parents stayed in Israel. C. Experiences with Anglo Conformity and Factors Affecting Inclusion ï‚ · By the standards of Anglo Conformity, were your relatives included or excluded in American society? ï‚ · How did they avoid/attempt/achieve assimilation and integration? ï‚ · What role did social class and social power play in their experiences? Even though my mother’s parents came from somewhat different backgrounds, both my grandparents grew up living in a city amongst those of a similar background or class. My grandmother’s neighborhood was comprised of mostly Jews and African Americans, and, while she was somewhat fearful of the black people there because, as she said, they might mug you,† she felt safe and accepted by her surrounding community. During WWII, her grandparents were still in Europe, and she remembers her childhood being more impacted by the war overseas than any discrimination in America that may have been in place.  However, she was aware that in other more â€Å"WASP† neighborhoods outside of the city she lived, Jewish people were excluded. During the depression, there was major competition for jobs, and Jewish people were scape-goated. Also at that time, schools in other areas than where she lived would only accept a finite number of Jewish children. My mother’s father also lived in a tight-knit Jewish community in the city and did not mix with the rest of the community at first. However, as he learned English and began to go to school and work, he began to feel more integrated. Unlike my grandfather and her parents, my grandmother was born in the US and did not have a language barrier to overcome. Like most second generation immigrants, she was able to assimilate with the general public, and, because she already looked European, it was easier to blend in with many other communities. However, there was some judgment from her own community when she befriended children of different backgrounds, and she often heard statements such as, â€Å"Don’t be friendly with the goyium! God forbid you marry one of them,† she was six at the time. My mother considers herself an Israeli American. Since she did not grow up here, she lacks the cultural experiences that others who did grow up in America may have. She speaks Hebrew with her Israeli friends, but also has a lot of American friends. Her English has always been good, and she never had much of an accent. She continues to relate to Israeli folk songs and dances and Jewish holidays and traditions although she does not practice religion seriously. She identifies as Caucasian with middle class values of culture, education, social equality and justice. All things being equal, I think my mother assimilated into the dominant society pretty well. My father had a harder time coming into the states and assimilating from the beginning. He had a thicker accent than my mother and did not have much of an educational background. He also suffered more anti-Semitism at his blue collar job, at which he interacted primarily with less educated, lower middle class people. To this day, his friends and the people he surrounds himself with are primarily Israeli, Jewish, family, or people he knew from his days in Israel. D. Conclusion What conclusions do you draw about your own status of assimilation based on your ethnic roots, socialization, and personal experiences? There was always a very long plane ride that separated me from most of my extended family. As  a consequence of being so disconnected with my roots and removed from relatives, I feel that I may have lost a lot of what makes me Jewish, and, during my years of assimilation and blending with the dominant Protestant culture of my neighborhood, I have become very Americanized. My mother and father would continue to speak Hebrew in the household, however, while my parents tried to teach me, I never learned how to speak it myself. We did not go to synagogue, so, while we continued to celebrate high holidays (the important Jewish holidays), the tradition of what they meant to the Jewish religion was lost on us. These holidays were instead mainly a way for family and/or friends to get together once in a while. My slight ambivalence or naivety regarding the effects of any cultural differences between my cultural upbringing and that of the dominant culture are most likely due to the fact that these particular differences were more subtle than the stark cultural differences of other cultures. Being an Ashkenazi Jew, I did not bare any physical markings of any particular minority, and I could blend in with the rest of the dominant white culture of my neighborhood. As I grew up and made friends in school, I began to notice that most did not have menorahs in their houses or barmitzva parties, and traditional holidays were not celebrated the same. While I acknowledged that these things were different, I do not think I was ashamed of them perhaps because, while they were not practiced by the majority of the people I associated with, being Jewish was mostly accepted by the majority of people. However, my experience may have been different if my skin was darker or if I had practiced my religion more seriously. However, for the most part, religion or background did not warrant discussion unless it was purposefully brought up or mentioned. On the other hand, while being Jewish may not have been shameful for me, it remained something that set me apart from others, and it was something I had to explain when a friend asked why I did not have a Christmas tree or about my fathers heavy accent. However, unlike my grandparents and great grandparents who had their Jewish communities, I also did not have a community nearby where I felt the same. My family was secular and non-religious, so we did not have any connections through the synagogue, and our extended family was in Israel. In consequence, I always felt a little left out, or like I did not belong exactly to any one place.

Foreign Exchange Risk in Pakistan Financial Institution

Foreign Exchange Risk in Pakistan Financial Institution Abstract Companies especially multinational companies and financial institutes like banks and insurance companies are now exposed to foreign currency risks caused by unexpected movements in exchange rate. In order to survive in this competition age companies have to manage this foreign exchange risk in a planned and good manner. The purpose of this study is to describe the different types of risks faced by financial institutions in Pakistan. These risks may include translation risk, transaction risk and operating risk. Research also includes the management and measurement of foreign exchange risk and studies the different methods of hedging this risk. The research was conducted through internet, analyzing the financial reports of different financial institutes and face to face interviews conducted from different executives of different financial institutes. Foreign exchange risk has a great impact on the cash flows and operating profits of an organization while doing business abroad and organizations have to familiar to manage and hedge this risk by using different derivatives and choose the best method that is suitable to organization. Managing the foreign exchange risk through hedging and use of derivatives is very common in these days. Organization often uses leading and lagging technique and less uses the swaps and invoice currency methods. 1- Introduction In this section the back ground of the research will be presented. On the basis of back ground we will make a research question and then followed the proposition for a financial institutions foreign exchange risk. 1.1 Background of the study With the fast development of economic globalization since 70s of last century, today companies operate in as integrated world marketplace. The international market produces the global producer, supplier, customer and also global competitors. Now a days money has no national boundaries. Meanwhile the increasing global business has brought many new problems and opportunities for organizations. They also facing different kinds of risks involving operation risk, investment risk and financing risk etc. to be familiar with those risks and how to hedge and control these risks is very important for organizations. Especially the foreign exchange risk is placed at the top of the risks to be concerned for an effective management. Multinational corporations and multinational enterprises are the entities that operate in at least two countries in both ways i.e production and rendering services. Recently foreign exchange risk has got the increasing importance in both sectors corporate and literature. Focusing on different aspects, a no of studies have been done in order to develop the theory and provide the facts of corporate sector in foreign exchange risk. Some of them like Charles, Ronald and Herman tried to study the exchange rate behavior and others like Anderson Bollerslev, Diebold and Paul attempted to study the volatility of exchange rates. Present monitory system is illustrate by a mix of floating and managed exchanged rate policies that every country perused in its best interest. Any appreciation of a currency against other will bring export down and vise versa. Financial institutions must understand the foreign exchange risk in order to compete, survive and grow in their business of exports and to avoid from competition in imports. ________________________________________________________________________ http://en.wikipedia.org/wiki/Multinational_corporation 1.2 Research questions What exchange risk does a financial institute face and whether they hedge it or not. Whether these institutions used derivatives instruments to hedge exchange rate risk or not. What derivatives are used by these financial institutions in order to hedge the exchange risk? How these organizations measure the exposure of foreign exchange. What would be the objectives of foreign exchange risk management in financial institutions in Pakistan 1.3 Purpose Main purpose of this research is to describe the actual condition of foreign exchange risk in financial institutions in Pakistan. And how these organizations manage this risk and what efforts are done by these organizations to hedge the risk. 1.4 Disposition Chapter one: Introduction Content: This part is that where the research topic was introduced along with the importance of the foreign exchange risk management, the background of study and our purpose of study. The research problem and questions has been brought up, and we provide reader with our research purpose. Chapter two: Literature review Content: it is the literature review part. It will include the theory of foreign exchange risk management concepts of foreign exchange risk, its classification, characteristics, and different methods and techniques to manage and hedge this risk. Chapter three: Research methodology Content: This part is about the methods and techniques used for research purpose that how the data will be gathered analyzed and how to reach the conclusion. Chapter four: Empirical findings Content: In this part of thesis research will be done with the help of annual reports of different organizations. The study will help in analyzing that how these organizations manage this risk and what techniques are used by them. Chapter five: Comparative Analysis Content: In this chapter we will compare the data gathered from different financial institutions and find out the managing methods used by them. Chapter six: Conclusions and Recommendations Content: this part will contain the summary of our findings, implication and results answering the research questions of existing theory. It will also contains the recommendation for future research that may evaluate this research 2. Literature Review It is the review of literature regarding the foreign exchange risk management. It also includes the concepts, characteristics by types and different methods of hedging this risk. 2.1 Foreign exchange risk 2.1.1 The concept of foreign exchange risk What is foreign exchange risk? Different authors and researchers define exchange risk in different ways. Niso abuaf defines à ¢Ã¢â€š ¬Ã…“foreign exchange risk is the chance that fluctuation in the exchange rate will change the profitability of a transaction from its expected valueà ¢Ã¢â€š ¬?. (P.29)This definition is in terms of financial risk. Cornell and Shapiro (P.45) also define foreign exchange risk as à ¢Ã¢â€š ¬Ã…“variability in the value of a firm as measured by the present value of its expected future cash flows, caused by uncertain exchange rate changes. In this definition both the researchers emphasize the firms cash flows. Hekman (60) defines exchange risk in terms of control of firms as the possibility that operating and financial results may exceed or fall short of budget. Foreign exchange rate risk is the potential gain or loss resulting from a change in exchange rate. It is the risk arising from the adverse movements in exchange rate to the earnings and capital. It is the impact of adverse movement in currency exchange rate on the value of open foreign currency position. Banks faced this risk that arises from maturity mismatching of foreign currency positions. Banks also face the risk of failure to pay of counter party in foreign exchange business. While such type of risk crystallization does not cause primary loss, bank may undertake new transaction in cash/spot market for replacing the failed transactions. ____CGAP Portfolio, à ¢Ã¢â€š ¬Ã…“Are MFIs Hedging Their Bets? Issue 1, April 2005 Major categories of exchange rate changes are given as follow: Depreciation: it is the ongoing decline in the value of currency in the relevance of another currency. Devaluation: it is the sharp fall in the value of currency in comparison of another currency. Appreciation: it is the gradual increase in the value of currency in comparison of another currency. For example, a financial institution that has not managed its foreign exchange risk will Lose money through currency depreciation when the value of local currency falls as compared to the currency in which the liability is held. That is, if a financial institution say bank has borrowed in US Dollars and giving debt in local currency PKR will suffer a loss if the value of rupee falls against Dollars. It must have more PKR to service the Dollar based debt. 2.1.2 Classifications of foreign exchange risk Ankrom (1974) was the first writers who classify the foreign exchange risk in different categories. Many other writers and researcher also classified foreign exchange risk in different types. These authors include Walker (1978), Whilborg (1980), Dumas (1984), and Shapiro (1989). Following are three main kinds of foreign exchange risk, Translation exposure Transaction exposure Operating exposure These risks are further defined by Shapiro in 2006. à ¢Ã¢â€š ¬Ã…“Translation exposure, also known as accounting exposure, arises from the need for purpose of reporting and consolidation, to convert the financial statements of foreign operations from the local currency (LC) involved to home currency (HC). If exchange rate has changed, liabilities revenues, expenses, gains and losses that are denominated in foreign currency will result in foreign exchange gain or loss.à ¢Ã¢â€š ¬? This exposure generally affects the balance sheet and those items of income statement that already exist. à ¢Ã¢â€š ¬Ã…“Transaction risk, result from transactions that give rise to know, actually binding future foreign-currency-denominated cash inflows or cash outflows. As exchange rate change between now and when these transactions settle, so does the value of their associated foreign currency cash flow, leading to currency gains or losses.à ¢Ã¢â€š ¬? This exposure affects the cash flows of an organization which can be the result of an existing contractual obligation. For example this risk may affect the transactional account like receivables (export transactions) and payables (import transactions) or repatriation of dividends. à ¢Ã¢â€š ¬Ã…“Operating exposure, measures the extent to which currency fluctuations can alter a companys future operating cash flows, that is, its future revenues and costs. The firm faces operating exposure the moment it invests in servicing a market subject to foreign competition or in sourcing goods or inputs abroad. This investment includes new-product development, a distribution network, foreign Supply contracts, or production facilities.à ¢Ã¢â€š ¬? This risk also affects cash flows but impacts revenues and costs associated with future sales. The combination of two exposures i.e transaction exposure and operating exposure is also called economic exposure as said by Shapiro. This economic exposure actually affects the firms present value of future expected cash flows from exchange rate movement. Economic risk concerns the effect of exchange rate changes both on revenues (domestic sales and exports) and operating expenses (domestic input costs and imports). It is very crucial for firms to establish a strategy of managing the foreign exchange risk as they have the clear identification of various types of currency risks along with their measurement. 2.2 Measurement of foreign exchange risk For the multinational firms, they must have to face the foreign exchange risk. It is very important for them to exactly measure the foreign exposure faced by their organization. 2.2.1 Measurement of translation risk History describes four principals method for translation. These are given as follow: The current/non current method The monitory/non monitory method The temporal method The current rate method These can be understood from following table: Note: while translating the income statement sales revenues and interests are generally translated at average historical exchange rate that prevailed during the year, whereas depreciation is translated at appropriated historical rate. Cost of goods sold and some general and administrative expenses are translated at historical exchange rate and other items are translated at current rate. à ¢Ã¢â€š ¬Ã…“Cà ¢Ã¢â€š ¬?= it stands for current rate. That means assets and liabilities are recorded at current prevailing rate. It is the rate at balance sheet date. à ¢Ã¢â€š ¬Ã…“Hà ¢Ã¢â€š ¬?= it shows historical rate. Assets and liabilities are recorded at historical rate that was prevailed during the period. After knowing all the methods of translating the issue arises is that which method should be used among these four methods while translating? Financial accounting standard board (FASB) in its standard 8 which relates to the governance of treatment of translation of foreign currency financial statements from 1975 requires that organizations should use the temporal method for translation of financial statements and the resulting gain or loss from translation should be included in income statement. But this treatment was argued that this produced gains or losses which were not the economic reality of the organizations business. So any hedging for this translation risk under this method seems not realistic meaning. From the invention of standard 52 published by Financial Accounting Standard Board to the end of 1981, which replaced the FAS 8, require that organizations must use the current rat method for translation purpose. FAS 52 introduced the functional currency, which is identified b y each organization for basic economic environment and selected for each of the organizations foreign entities. If the functional currency is foreign currency, the standard requirement is to use the current rate method for any translation gain and loss that is taken directly to the share holders equity. Whereas if the functional currency is the parents company currency, then the rule described by FAS 8 should follow. The above mentioned issues can be referred to the Adrian Buckleys book named à ¢Ã¢â€š ¬Ã…“Multinational Financeà ¢Ã¢â€š ¬? (2004) (P145-152). http://pages.stern.nyu.edu/~igiddy/fxrisk.htm, à ¢Ã¢â€š ¬Ã…“The Management of Foreign Exchange Riskà ¢Ã¢â€š ¬? by Ian H. Giddy And Gunter Dufey 2.2.2 Measure of economic exposure as Adler and Dumas (1980,19840defined foreign exchange risk as the regression of assets value on the exchange rate and recommended that exchange rate risk of organizations can be calculated by the sensitivity of stock return to exchange rate activities. Many other researchers like Popper (1997), Bodnar and Gentry (1993) And recently Martin and Mauer (2003, 2005), have been done to explore the foreign exchange exposure. Whereas Holton (2003) indicated that when measuring the foreign exchange risk is difficult it is due to the difficulty of measuring the economic risk. For the measurement of economic risk the method used is value-at-risk (VAR). in broader sense value at risk is defined as the maximum loss for a given risk over a given period of time with z% confidence. This definition was given by micheal papaioannou (2006). 2.3 Foreign Exchange Risk Management 2.3.1 Corporate Objectives of Risk Management After knowing the foreign exchange risk and its measurement faced by the organization, the company should choose to whether hedge this risk or not and further know how this risk should be managed. Oxelheim and wihlborg (1987) with mutual participation produced the idea of currency risk which is given as follow, à ¢Ã¢â€š ¬Ã…“Risk aversion: it relates to the desire of reduction of variability of cash flows in businessà ¢Ã¢â€š ¬? à ¢Ã¢â€š ¬Ã…“The target variable: in summaries form these are the efforts of the organization to maximize or to stabilize, measurement in accounting or cash flow, measurement in nominal or real terms.à ¢Ã¢â€š ¬? An effective foreign exchange risk management requires definite objectives viewing managements approach toward the foreign exchange risk. The decision making of hedging or not to hedging the foreign exchange exposure depends upon the attitude of companys management towards exchange risk management. Hedging strategy varies from organization to organization. Whenever there is a risk the risk aversion companies try to hedge this risk whereas the risk taking companies leave this risk unhedged. This is the idea arises from management of financial risks that management of financial risk is unnecessary and the gain and loss is will at last equalize in term of equilibrium relationship in the international financial market. This idea was given by Dufey and Sirininasulu in 1984: à ¢Ã¢â€š ¬Ã…“Foreign exchange risk does not exist; even if it exists, it need not be hedged; even it is to be hedged, corporations need not hedge it.à ¢Ã¢â€š ¬? It is the general concept that the organizations invo lved in exports and imports should hedge the risk of foreign risk exposure as a risk averse attitude. In real terms companies prefer to manage the risk within an acceptable limit instead of adopting neither of the two attitudes. Management should be in charge for ensuring to take suitable and reasonable actions based on after-tax term to decrease the risk. 2.3.2 Theoretical appraisal of managing foreign exchange exposure it is the basic strategy of the organizations to hedge the foreign exposure that they increase hard currency assets and decrease the soft currency assets, at the same time decreasing the hard currency liabilities and increasing the soft currency liabilities. However, many debates relating to the hedge the translation exposure exist in finance literature. Pramborg (2002) pointed out that transaction exposure hedging comes to add value for Swedish companies whereas there is no value addition from translation exposure. Butler (1990) suggested that it support the general suggestion of the finance literature not to worry about this type of risk, so it might not be hedged. A reason for not hedging this risk is that translation exposure risk is uneconomic as it is based on historical book value and has no direct effect on organizations cash flows. Thus organization should concern to the exposure faced to the cash flows. Earlier experimental studies by Belk and Glaum (1990) and Aobo (1999) who have investigated the foreign exchange risk management in UK and US multinationals, show that the management of transaction exposure is the focal point of company exchange risk management for the transaction risk control the real cash flows. As compared to translation and transaction risk operating risk is less defined and more difficult to manage. It could be defined as the sensitivity of an organizations future cash flows to the unexpected change in foreign exchange rate and any change in aggressive environment caused by these currency movements. Belk and Glaum (1990) found that firms were less worried about the real impact of exchange rate varies on the competitive position of the companies. Bradley and Moles (2002) find that there is a strong relations ship between exchange rate sensitivity and the extent to which it sales, sources and funds itself worldwide. Shapiro (2006) argued that it could be concluded that organizations operating exposure is attributed to distinguish a companys product is, the internationaly expand its competitors is, the ability to shift production, the sourcing of inputs among countries, and the variation in real exchange rate. It is assumed that the firms more involved in foreign markets the greater would be the operating risk faced by the organization. Shapiro (2006) concluded that firms can easily hedge their transaction risk, competitive exposure (operating exposure) are long term and can not be dealt with exclusively through financial hedging techniques, they relatively require making the long term operating adjustment. Strategic reorientation of operating policies related to pricing, sources, location of production and financing needs not only financial managers but also requires the corporate managers. Moffet and Karlsen (1994) illustrate the use of production, financial and promotion policies to manage economic currency risk as natural hedging. Being a part of globalization business environment, diversification of international operations is very important for multinational corporations to handle operating risk. So this can give the companies to maintain competitive advantage and protective reactions to unfavorable exchange rate changes. Whenever service cost or domestic production cost is affected by exchange rate changes as compared to those of producing in foreign country, the firm can move product sourcing from those countries whose currency is devalued or plant transfered there. Strategic marketing and production regulations in general are for à ¢Ã¢â€š ¬Ã‹Å"cost-effective. Another operational process used to hedge operating exposure is financial management, which are formating the firms assets and liabilities. One option is to funding the portion of a firms assets used to create export profits so that changes in foreign assets values caused by an exchange rate change are compensate by virtual changes in the debt expense in the same currency. For example, a firm should hold debt in currency of a foreign country, in which the firm increases a considerable export market. Existing text such as Glaum (1990) suggests economic exposure management should be integrated into the long-range, strategic planning system of the corporation and included with all areas of corporate decision-making. Tools and techniques for foreign exchange risk management Nowadays foreign exchange risk could not only control a firms quarterly earnings, but Also decide its survival. A variety of financial implements come into sight as the financial markets require managing the different increasing exposure that firms face. For Managing foreign exchange risk, there exist internal techniques such as matching inflows and outflows, inter-company netting of receipts and payments, transfer pricing agreement, etc, and external hedging tools involve the usage of different sorts of derivatives including forwards, futures, debt, options and swaps. Each of these techniques differs to hedge different exchange risk in each company situation. There have been many studies concerned with the effect from the use of these Currency derivatives, e.g. recent study as Allayannis and Ofek (2001), Bengt Pramborg (2002). Foreign exchange forwards A forward foreign exchange contract is a contract to exchange one currency for another with a particular amount, where the exchange rate is fixed on the day of the contract but the actual exchange takes place on a fixed date in the future. The predetermined exchange rate is also known as the forward exchange rate. The amount of the contract, the value date, the payments method, and the exchange rate are all mentioned in contract at the time of contract. Forward contracts in major currencies are available on daily basis with maturities of up to 30-, 90-, and 180-day. Two types of forwards contracts are often used: deliverable forwards (face amount of currency is exchanged on settlement date) and non-deliverable forwards (which are settled on a net cash basis). A currency forward contract is usually used to hedge exchange risks that ranges from short to medium term and whose timing is known for certainty. It is so important for Firms treasurers to deal in the forward market that they can fix the costs of imports and exports in advance for the payable or receivable amount and hedge the exchange risk. A lot of experimental researches such as Belk et al. (1992), Bodnar et al. (1995), Mallin et al (2000) and Pramborg (2002) pointed out that the most commonly used method is forward exchange contract. With forwards, the firm can be totally hedged. However, some exposures including settlement risk that exchange rate shift in the opposite direction as they predicted, and counter party risk which the other party is unable to perform the contract. Sometimes the high cost of forward contracts prevent Firms to implement this instrument to fully hedge their exchange exposure. For that reason, futures are more beneficial. Currency futures Currency future is another tool to decrease the exposure of foreign exchange instability It is an exchange-traded agreement specifying a standard amount of a particular currency to be replaced on a specific future payment date. It is likely to forward contract in a way that they permit a firm to buy or sell definite currency at a fixed price and at a future time. So far, there are some differences among these two sorts of practices. One of the futures distinctiveness vary from forward is that futures are standardized both for amount and payment date (normally March, June, September and December), whereas Forwards are for any amount and any delivery date upon which the two parties are agreed. One more difference is that forwards are dealt by phone and telex and are completely independent of locality or time while all clearing functions for futures markets are hold by an exchange clearing house. The biggest difference is in terms of liquidation that futures contracts are settled by balancing of gains and losses for each day, whereas forward contracts are settled by real delivery whether full delivery of the two Currencies or net value only at the contract maturity. Giddy and Dufey said à ¢Ã¢â€š ¬Ã…“This daily cash compensation attribute mostly eliminates default risk.à ¢Ã¢â€š ¬? Futures market and forward market both are of most important ways to hedge risk. David Tien (2002) pointed out à ¢Ã¢â€š ¬Ã…“Firms uncomfortable with the uncertainty involved in receiving a fixed payment in foreign currency can easily hedge the transaction using either futures or forward contracts.à ¢Ã¢â€š ¬? Some studise as Belk and Glaum (1992) establish that none of the firms which were talked used currency futures, because the standardized features of exchange traded futures most often do not enable the companies to hedge their positions completely. Mallin et al (2000) also found that only 9 companies out of 231 respondents to their survey used currency futures. Giddy and Dufey conclude that à ¢Ã¢â€š ¬Ã…“forwards and futures serve similar purposes, and tend to have identical rates, but differ in their applicabilityà ¢Ã¢â€š ¬?. The largest part of big companies use forwards; futures tend to be used whenever exchange risk may be a problem. Currency options A foreign exchange option which is dissimilar from currency forward agreements and currency futures is to give the possessor of the contract the right to buy or sell a definite amount of a certain currency at a prearranged price (also called strike or exercise price) until or on a specified date, but he is not bound to do so. The seller of a currency option has obligation to execute the contract. The right to buy is a call position and the right to sell is a put position. There is option premium required to pay by those who acquire such a right. The holder of a call option can take advantage from a price increases (profit is the difference between the market price and the strike price plus the premium), while can choose not to exercise the right when the price decreases (locked in loss of the option premium). Vice versa is the situation for the holder of a put option. For the advantages of simplicity, elasticity, lower cost than the forwards, and the expected maximum lossà ¢Ã¢â€š ¬Ã¢â‚¬ which is up to the premium paid to acquire the right , the currency option has become growing popular as a hedging tool to protect firms against the exchange rate movements. Whenever there is insecurity in the size of cash flows and the timing of cash flows, currency option agreements would be better to conventional hedging instruments such as forward contracts and futures contracts. Grant and Marshall (1997) observed the degree of derivative use and the motives for their use by carried out surveys in 250 large UK companies, found that a extensive use of both forwards and options(respectively 96% and 59%). They pointed that comparing the most important reasons for the use of forwards were company policy, business reasons and risk aversion, A good understanding of instrument, and price were prominent while the primary reasons to use option for company management. Currency swaps As a virtually new financial derivative used to hedge foreign exchange exposure, currency swaps have a rapid advancement. Since its introduction on a global scale is in the early 1980s, currency swaps market has turn into one of the leading financial derivative markets in the world. A currency swap is a foreign exchange agreement among two parties to exchange a given amount of one currency for another and, after a particular period of time, to give back the original amounts exchanged. It can be negotiated for a broad range of maturities up to at least 10 years, and can be regarded as a series of forward contracts. It is normally used under such circumstances that a firm functions in one currency but need to borrow in another currency. Currency swaps are frequently connected with interest rate swaps, as the common cross currency swaps the cross-currency coupon swap which is to pay fixed and get floating interest sum meantime buying the currency swap. Another generally used one is cross currency basis swap which is to pay floating interest in a currency and receive floating interest in another currency. The benefit of currency swaps is to facilitate each contracting part to borrow in their relative constructive market, and both parties can benefit from the swaps by lessening the borrowing costs. The use of swaps now has developed rapidly in western countries such as Grant and Marshall (1997) found that the use of swaps and forwards/futures is dominant in UK, Bodnar et al. (1995) found that swaps govern for interest rate risk management in US.