Native Son Essays - Ethics, Native Son, RTT, Blindness,

Native Son Bigger Thomas has been shaped by various forces. Forces that have changed the life completely for Bigger Thomas. In Native Son, Bigger Thomas seems to be composed of a mass of disruptive emotions rather than a rational mind joined by a soul. Bigger strives to find a place for himself, but the blindness he encounters in those around him and the bleak harshness of the Naturalistic society that Wright presents the reader with close him out as effectively as if they had shut a door in his face. In the first book, Wright tells the reader these were the rhythms of his life: indifference and violence; periods of abstract brooding and periods of intense desire; moments of silence and moments of anger -- like water ebbing and flowing from the tug of a far-away, invisible force (p.31). Bigger is controlled by forces that he cannot tangibly understand. Bigger's many acts of violence are, in effect, a quest for a soul. He desires an identity that is his alone. Both the white and the black communities have robbed him of dignity, identity, and individuality. The human side of the city is closed to him, and for the most part Bigger relates more to the faceless mass of the buildings and the mute body of the city than to another human being. His mother's philosophy of suffering to wait for a later reward is equally stagnating -- to Bigger it appears that she is weak and will not fight to live. Her religion is a blindness; but she needs to be blind in order to survive, to fit into a society that would drive a seeing person mad. All of the characters that Bigger says are blind are living in darkness because the light is too painful. Bigger wants to break through that blindness, to discover something of worth in himself, thinking that all one had to do was be bold, do something nobody ever thought of. The whole things came to him in the form of a powerful and simple feeling; there was in everyone a great hunger to believe that made them blind, and if he could see while others were blind, then he could get what he wanted and never be caught at it (p.102). Just as Bigger later hides himself amidst the catacombs of the old buildings, many people hide themselves deep within their minds in order to bear the ordeal of life and the oppression of an uncaring society. But their blindness allows them something that Bigger cannot achieve: it allows these people to meld into the society that is the city, while Bigger must stand at the outside of that community alternately marvelling and hating the compromises of those within. Bigger is alone; he is isolated from every facet of human affection. Max tells the court that Bigger cannot kill because he himself is dead, and a person without empathy or sympathy, without the deep, steadying love of family or faith in anything. When he lashes out in violence it is in a way a search for what hurt him; he hurts others because it is a way of hiding that he is hurt and afraid.). If one considers life to be a period of growth and learning, recognition of self-worth and of the worth of others, then Bigger has not been given the chance to live. Book Three is called Fate, and indeed Bigger seems to be controlled his entire life by ambivalent outside forces who could care less about him. He has been lied to until he believes the lies he tells himself. He has no place in society. His own mother believes in him no more than the billboard reading you can't win that he sees each day outside his apartment. He has grown up in an environment where enormous rats fester in holes and water is a maybe situation, where meals are precarious and money is almost nonexistent, and where he is told time and time again that he has no worth, no dignity, no intelligence or creativity. Is it any wonder that Bigger is violent? It seems more fantastic that all of the people around him are not. When he says, upon reading the paper No!

Perceptual Mapping

Perceptual Mapping Free Online Research Papers Perceptual mapping is an exceptional resource that marketing managers use to better understand the correlation between competitors, changing marketplace conditions, the principles that influence consumers purchasing behaviors, and can help an organization maintain an advantage over its competitors. This distinctive style of market analysis illustrates a product or service’s market position in relation to subject, target market, price, design, competition, and lifestyle. This dissertation will illustrate the situation for each phase of the simulation. Next it intends to describe the recommended solutions and reasons for those recommendations. Last, this paper will discuss the various marketing components used in the simulation and answer the following questions: 1.) what is the connection between the delineation and positioning of products and services and is the positioning of a product or service different from what I expected? And 2.) How does the product life cycle a ffect the marketing and how did it affect the proposed product in the simulation? Thorr Motorcycle Inc. Thorr Motorcycle Inc. is a high image manufacturer of a variety of motorcycles. The business in known to produce over 200,000 each year and is worth five billion dollars. Thorr also holds licenses and sells numerous other consumers products like t-shirts, toys, and motorcycle shoes (Phoenix, 2010). Although the company handles a large volume of sales, it also provides services like software packages for dealers and motorcycle rentals and rider training to consumers. With its high level of performance and its high brand image, Thorr controls 40% of the Oligopoly market that includes the 651 + cc cruiser segmentation. According to the simulation, the sales of the Cruiser Thorr, one of Thorr Motorcycle Inc.’s existing products is declining even though the motorcycle industry is constantly expanding. One reason for this situation is the initial target audience age group selected for the Cruiser Thorr ranged from 35 to 50 (Phoenix, 2010). That age group is growing older and no longer care about the lifestyle image that owning a Cruiser Thorr represents, but other attributes that suit their needs and wants. Phase I My first assignment as the new marketing manager is to establish a well-developed and properly implemented positioning approach for the Cruiser Thorr. The first step to formulating a strong positioning strategy is to identify the parameters and attributes that play a significant role in swaying my customers’ purchasing behaviors and decisions. The same constraints are essential for fashioning the perceptual map that will help in creating a marketing approach and positioning strategy. The four essential parameters I have selected for the Cruiser Thorr are lifestyle image, quality engineering, price, and service offerings. Each of these attributes will a play a role in how consumers compare the Cruiser Thorr to its competition and other similar products on the market. The lifestyle image includes other characteristics like engine capacity, product styling, uniqueness, and brand image. Together these attributes create the lifestyle image that represents one significant parameter that often sways customers’ purchasing decisions rather more than functional attributes. Yet another parameter the current target market may be looking for is an affordable price that can be worked into a fixed income or budget, but without having to sacrifice the Cruiser Thorr embodies. However, Thorr must also consider the younger consumers in the 21 to 35 age group olds. This age group is less interested in the lifestyle image of the Cruiser Thorr but is often more interested in a less expensive motorcycle because of the lack of disposable income (Phoenix, 2010). The last two parameters that I have selected are quality engineering and service offerings. Consumers often relate these two attributes as a pair. If the engineering quality is poor than consumers presume that they will need a great deal of maintenance. So they believe the company should provide those services for the product that was purchased from them. Often consumers will go to a competitor for the needed service because the company the product was originally purchased from does not provide it. Phase II In the second phase of the simulation, I had to decide which positioning strategy will have a bigger and better affect on Thorr Motorcycle Inc. After examining the strengths, weaknesses, opportunities, and threats (SWOT), I have selected to launch the new motorcycle RRoth rather than reposition the existing Cruiser Thorr. I choose to introduce a product because I believe that with the development department’s new fuel-efficient engine incorporated with a more modern and younger look Thorr Inc. can attract the younger consumers. A cool and uniquely designed motorcycle accompanied by an inexpensive price is exactly what the younger consumers are considering when making their purchasing decisions. However, Thorr is still continuing to accommodate the older target audience’s expectations by providing the superior brand image that is so important to them. The above decision meant that I would have to develop an innovative marketing mix for the new RRoth. My recommendations and reasons for making each of those recommendations for that framework are as follows: Price: I believe the $13,000 to $15,000 price range is perfect for the new motorcycle. By placing the new RRoth in a lower price category we will be able to attract a larger volume of consumers who make up the consumer age group of 21 to 35. A lower price is exactly what this age group is looking for because this particular group does not have large amount of disposable cash. Promotion: Do the nature of the product category and story line, the best way to promote the new RRoth motorcycle is to introduce it and advertise it through Hollywood movies, especially the science fiction and action movies. These types of films seem best suited to follow along with the story line of the new motorcycle. Place: In today’s high technology world one of the best places to promote the new RRoth motorcycle is on the Internet. People are constantly relying on the Internet for some reason or another. It also possesses unbelievable penetration to reach the selected target audiences. So I believe the inexpensive pricing and unique new design will attract potential buyers to the Thorr Motorcycle Inc.’s manufacturer website to look at the new motorcycle. Phase III Phase III required me to interpret the results of the market research to create perceptual maps for both the Cruiser Thorr and the RRoth. My findings for each are as follows: Parameters for the Cruiser Thorr Lifestyle image- seven Price- eight Quality Engineering- eight Service offerings- nine I had interpreted the market research correctly for most of the parameter I had chosen, but needed to pay closer attention to the values that I assigned to lifestyle and price. The simulation recommended that I should have assigned a value of nine or higher because the customers who own Cruiser Thorr think so highly of it. Perceptual Map for the RRoth Once again I needed to examine the market research to formulate a perceptual map for the new RRoth motorcycle. The parameters for the RRoth perceptual map are as follows: Lifestyle image- seven Price- eight Quality engineering- nine Service offerings- eight I had analyzed the marketing research correctly. But could have included cool into the parameters I had selected. However, the rating of seven that I had assigned for the lifestyle image was appropriate for the brand and consumers also consider it to be a status symbol. The simulation also showed that I had appropriately quality engineering. According to the research, consumers are using this parameter to influence their purchasing decisions very heavily. Conclusion In regard to the relationship between differentiation and positioning of these products are almost similar. The differences between them are the Cruiser Thorr’s target audience once considered it to be a status symbol for a high price. The target audience for the RRoth sees it as a status symbol but with a cool unique look for less cost. But each still considers the same parameters to make their purchasing decisions. Going into this simulation I had no prior knowledge about motorcycles. If I understood more about the marketing of motorcycles or the retail of them, than I believe I would have had some opinion to the products positioning. But because of that, I had no expectations of the simulation in regard to how products were positioned. This simulation demonstrates that the Cruiser Thorr has progressed through the initial stages of the product life cycle that allow it to prosper and is now moving through the maturity stage. The cycle has helped it to grow and expand into the target market but Thorr Motorcycle Inc. is now struggling to sustain their sales levels. Whereas, the RRoth is just moving into the first stage of the product life cycle. Because each of these products is in a different phase of the product life cycle, the company will have to adjust its marketing strategies to accommodate that stage of the lifecycle. This could mean having to reinvent a product, reposition it, introduce a new product or even remove it from the market when it can no longer thrive on the market. References Phoenix, U. o. (2010). General Marketing:. Retrieved March 2010, from Using Perceptual Maps in Marketing. . Research Papers on Perceptual MappingMarketing of Lifeboy Soap A Unilever ProductIncorporating Risk and Uncertainty Factor in CapitalOpen Architechture a white paperBionic Assembly System: A New Concept of SelfDefinition of Export QuotasThe Project Managment Office SystemResearch Process Part OneThe Fifth HorsemanGenetic EngineeringRelationship between Media Coverage and Social and

International Finance Essay Example | Topics and Well Written Essays - 2000 words - 5

International Finance - Essay Example Though the negative event cannot be avoided, but the impact can be reduced. There are two types of risks vis-a-vis systematic and unsystematic risk. Investors usually hedge against systematic risk which includes financial risk, operational risk, liquidity risk, financing risk, currency risk, etc. According to the authors Clark and Ghosh, large firms usually balance their hedging techniques so as to minimise the cost of hedging. Corporate managers try to identify the risks facing the company so that they can strategise a suitable hedging technique to counter the effect of those risks. Big corporations are quite concerned with the foreign exchange risk, owing to their global business exposure. The author also stated that, the large corporations have global presence and trade across nations, thus vulnerable to currency risk as they have to trade in the local currency (Clark and Ghosh, 2004). Though there are various hedging techniques like futures, forwards, options, swaps and debt, but big corporations usually trade in futures, forwards, options and debt (Homaifar, 2004). As per the author Coyle, companies enter into an agreement with other party willing to buy/ sell currency. It is in the form of an agreement, where one party agrees to buy/ sell a specified amount of the currency at an agreed price, at an agreed time, delivery method to another party. Forwards trade takes place in two ways i.e. the spot market where the delivery takes place after T+2 days and the forward market where the price and other conditions are set before the delivery. The delivery takes place at a future date. In forwards contract companies usually face the counterparty risk, where one of the party refuses to buy/sell the derivative, thus putting the hedger at risk (Coyle, 2000). X is an IT company that exports software services to Y, a company in the US. X expects a payment of $1 million after five months. Assuming the exchange rate is  £1/$, it will receive  £1 million at the

The recent developments in the business environment Essay

The recent developments in the business environment - Essay Example The main motivation for mass marketing is the huge profit prospect created economies of scale. Starting from the strategy of competing on prices, companies have shifted to the focus on adding customer value by enhancing product quality. Recognizing the uniqueness of each of the segment of market segment, niche, and individual customers companies have embarked on target marketing. As opposed to mass marketing, target marketing focuses on serving a specific and identified target market. Instead of going after everyone, customers choose the most lucrative sector to cater to and use all of its resources in order to satisfy the needs and wants of these customers. From its humble beginnings Wal-Mart has become one of the most successful and biggest retailers in the world. What is very interesting about the company is its firm adherence in mass marketing as a strategy in the attainment of its organizational goals. Since its inception, the company is stuck to the principle in competing through a low pricing strategy. Following this, the company leverages on its ability to reap huge economies of scale through the large volume of sales. However, with the evolution of a hypercompetitive business environment characterized by the presence of higher customer bargaining and more aggressive competition on product quality (Kotler & Armstrong 2001) industry experts note that Wal-mart should leave mass marketing and focus on launching specific strategies aimed at each segment that it serves including Blacks, the Affluent, Empty Nesters, Hispanics, Suburbanites, and Rural Residents. Recognizing the importance of cultivating relationship marketing and the significance of considering the unique needs of each segment, this paper strongly recommends that Wal-mart embark on a target marketing approach. It should be noted that the more competitive nature of the retail industry dictates that each player pursue a harmonious and lasting relationship with its buyers by adding the value that they require. Thus, Wal-mart should step out from serving the broad anonymous crowd and start selling to each segment (Bianco 2004). It is recommended that the company does this by utilizing market penetration and product development. Recognizing that the product offered by Wal-Mart appeals to the working and bargain hunting customers, it is deemed most appropriate if the company looks into the possibility of serving the upscale segment by offering a new set of products which appeals to this demographics. Aside from this, the company can also opt to stand out from the crowd by improvin g on the other aspects of retailing such as merchandising, add-on services, and ambiance. Wal-Mart has long appealed to Blacks, Hispanics, and Rural Residents because of its price appeal. Having the capability of charging rock bottom prices because of economies of scale, Wal-mart has become prominent to this market. However, the proliferation of retailers who are taking efforts of targeting these markets somehow hurt the sales of the giant retailer. Thus, it is recommended that Wal-mart looks into penetrating these segments by offering more beverage and food products which are culturally appealing to Blacks and Hispanics. In order to cater

Perception of Money Laundering in Mauritian Population

Perception of Money Laundering in Mauritian Population Abstract Money laundering is the worlds third largest industry (Jeffrey Robinson (1995)) and may occur almost anywhere in the world. Given the nature of this phenomenon, money laundering has gained in significant proportion. Be they drug traffickers, terrorists, arm traffickers, blackmailers or credit card swindlers, all criminals demand for money laundering. This criminal activity erodes profits of all financial institutions, increases corruption and fuel social injustice. Money laundering has thus serious social and economic consequences that need to be fought against. Many international authorities have made considerable efforts to set up appropriate AML counter measures. Likewise, Mauritius in preserving its reputation has enacted the FIAMLA (2002) and has enforced the FIU to avoid the country being a vehicle of illegal fund. However, money launderers are always a step forward than any law enforcement agencies and organisations. This has been compounded with globalisation and sophisticated technologies. The aim of this dissertation is to assess the perception of money laundering among the Mauritian population. The result from the question-based data collection method used supported that the population do believe in a money laundering economy in the country. However, few of them do know all matters concerning this crime and therefore, more awareness must be drawn. There is still a long way to go for its elimination but things are being done to improve the effectiveness of its combat. Chapter 1: Introduction Background Money laundering exists for centuries but since the 11th September 2001 events, combating money laundering and terrorist financing has became more important. Countries realised it is urgent to combat this sophisticated criminal activity. Money laundering is the process of disguising illegal profits derived from illicit activities without compromising the criminals for them to enjoy from their proceeds without the authorities being able to detect the activities that produced them. Increasing awareness is being drawn for people realise that money laundering fuels crime. Money laundering erodes the economy of ones country and as mentioned by Quirk (1997) its impacts are more measurable than its figure. Money laundering affects individuals, businesses and countries, thus of global concern. 25 years ago, the international community has done much effort to combat this evil. In many countries, efforts made starts bearing its fruits and are now taking importance in many jurisdictions. In fact, if one country does not take action to combat money laundering, it may find itself lagging behind since it will be difficult for it to trade with the rest of the complying world. The latter may fear to trade with a non-complying country due to this element of non-combating money laundering. In effect, the non-complying countrys economic growth may be far behind as compared to complying countries. Low corruption affects growth positively (Mauros (1995)). However, despite the setting up of international instruments and laws to restrain this crime, its evil activities still exits and are even increasing in most cases. With new advanced technologies compounded with globalisation, it is easier for sophisticated launderers to continuously look for opportunities available worldwide in laundering their proceeds. Although, Briscoe (1999) said that Mauritius is not considered as having a significant money laundering problem, since the island has a developing local drug consumption problem and a vibrant growing offshore financial services sector, it is clear that opportunities exist. Thus, following other countries initiations, Mauritius has set up the necessary infrastructures to combat money laundering and prevent terrorist financing. Actually, to protect itself and to maintain a good reputation, it has promulgated, among others, the FIAMLA (2002) which criminalises money laundering and its offenders. Drug trafficking, terrorist activities and financial crime are examples of illicit activities. The main aim of this study is to assess the perception of money laundering among the Mauritian population. While reviewing the literature, it was noticed that for Mauritius the only local survey done was by the FIU in 2006. This was published in its annual report 2006 and was helpful for this study. Additionally, references from other studies, journals and literatures done on this topic were used. Benefits of the study provide a general idea on the perception of money laundering among the Mauritian population, provide an overview about any research done on this topic, provide an insight whether the population is aware about the laws and institutions combating money laundering in Mauritius. Chapters Outlines Chapter 1 Introduction This chapter provides a brief introduction of the study including a short definition and its benefits. Chapter 2 -Literature review The definition, the process and techniques used to launder ill-gotten money, the importance of combating money laundering, the international actions took and reports done internationally and locally are provided in this chapter. Chapter 3 Methodology This chapter explains the methodology used to collect the data necessary for this study. Chapter 4 Analysis It provides an analysis of the data collected, the interpretation of the results and the hypothesis testing done. Chapter 5 Conclusion This entails the concluding notes of this dissertation and suggests some recommendations. Chapter 2: Literature Review Money laundering has been with us for centuries (Graham (2003)). As Lloyd (1997) said, its origins can be traced since the 1930s, when notable gangsters like Meyer Lansky and Al Capone were prevailing. Their exploits founded money laundering methods still in practice today. Since then, it has gained in proportion and is almost impossible to measure its exact global amount. KPMG (2004) reported that internationally about US$500 billion to $1 trillion is being laundered and it is estimated that annually, in the U.S and in London, about US$100 billion and  £1.8- £2 billion is been laundered respectively. Moreover, IMF estimates that money laundering is about US$500 billion. Nevertheless, Quirk (1997) said that its impacts are more measurable than its figure. Thus, such illegal activities are increasing and have dangerous effects on a countrys financial services sector, thus, being an issue of both national and international security. Quirk (1997), Barrett (1997), Paradise (1998), Masciandaro, and Portolano (2003) mentioned that money laundering threatens the economic and financial systems of countries. 2.1 Definition Money laundering is the process by which criminals try to mask the true origin of ill-gotten money into the stream of lawful commerce and finance. If undertaken successfully, beneficiaries will enjoy and maintain control over their proceeds and ultimately be provided with legitimate cover for the source of their income authorities being unable to detect the activities that produced them. Illegal profits have to be laundered because the money trail is proof of crimes, thus, vulnerable to seizure. AllDridge (2003) said that clean money is worth more than dirty money. Hinterseer (2002) stated that money laundering is criminal finance as it corrupts markets, shifts an unfair economic burden in the legal economy, weakens the universal stability of the international financial markets and raises numerous civil liberty related issues. In Mauritius, the Government enacted the FIAMLA (2002) which gives explicit powers to gather, analyse and disseminate information to the FIU. Section 3: Money Laundering (1) Any person who (a) engages in a transaction that involves property which is, or in whole or in part directly or indirectly represents, the proceeds of any crime; or (b)receives, is in possession of, conceals, disguises, transfers, converts, disposes of, removes from or brings into Mauritius any property which is, or in whole or in part directly or indirectly represents, the proceeds of any crime, where he suspects or has reasonable grounds for suspecting that the property is derived or realized, in whole or in part, directly or indirectly from any crime, shall commit an offence. 2.2 Process of Money Laundering Peltman (1997) has shown that money laundering has three stages. They may occur as separate and distinct stages or as an overlapping phase. Their usage will depend on the criminals accessible laundering mechanisms and requirements. Figure 1: A Typical Money Laundering Scheme Placement Placement is where most efforts are focused to combat money laundering. This involves the breaking up of large deposits into minute deposits for currency transaction reporting avoidance. This involves single or multiple transactions using one or more bank deposits or the purchasing of investments. Michael et al (2002) find that placement is the most risky stage for detection It is where the huge illegal cash profits are presented personally to a financial establishment. This can pose an enormous problem as dealing with cash in bulk and in regularity is difficult. Layering Steel (1998) found that layering stage is the most complex stage and the most international in nature. Graham (2003) said that layering relies on the negotiation of paper, electronic or digital records through a series of transactions which will make it difficult, if not impossible the reconstruction of paper trail detailing previous cash movements. 2.2.3 Integration Integration follows a successful layering process and is the final stage according to Schneider (1994). Moreover, for Graham (2003), transactions can no longer be linked to criminal cash and the secrecy of the source of funding is guaranteed. The criminal cash in the legitimate economy appears as money naturally originated from legal transactions. Araujo and Moreira (2005), Masciandaro (1999) stated that it is expected when cleaning has been done the money is ready to get back into the formal economy, thus, providing funds for investment or consumption. 2.3 Techniques of Money Laundering Briscoe (1999) stated that money laundering is not considered as a significant problem in Mauritius and that the country is not a major narcotics production or trans-shipment centre. Nevertheless, since the island has a developing domestic drug consumption problem and a vibrant growing offshore financial services sector, it is clear that opportunities exist. Results obtained by Mauro, (1995), (1997), Leite and Weidmann, (1999), Alesina and Weder, (2002), Damania, Fredriksson and Muthukumara, (2003) from the World Banks Governance Indicators and Transparency Internationals Corruption Perception Index (CPI) indicate that corruption indexes is now a very profitable source of research. Similar to money laundering has no frontier, money launderers have unlimited originality to launder their money. Hence, launderers will seek where the weakest link in the chain is, targeting the weakest point of defenses and where detection is less likely to arise. Masciandaro (2001) said that financial industries are the major concern of money laundering fighters since money actually needs to pass through them. Money laundering techniques are very long, sophisticated and difficult to determine precisely. Some of them are summarised below. 2.3.1 Banking Services Considering their activities, banks represent a natural and logical vehicle for launderers. Graham, Bell Elliott (2003) stated that cash deposits, basic banking services and wire transfer facilities are the core means of money laundering. The wealthier launderers will look for specialist private bank services and investment houses that offer wealth management services. Following the Basel Committee statement (1988), Johnson and Lim (2002) stated that financial institutions including banks may be willingly or unconsciously be used as intermediaries for money laundering since they remain an important mechanism for its disposal. Mascaindaro (1995) strengthen this theory by stating that money laundering occurs either by passively using bank agents or by actively using criminal banks. In contrast, Quirk (1997) empirically observed a shift in money laundering techniques and concluded that launderers are going away from the banking system. Bauer and Peter (2002) mentioned that banks are actively combating money laundering and these initiatives may well be a model for international cooperation. 2.3.2 Money Services Businesses Graham, Bell Elliott (2003) stated that criminals use ‘bureau de change to convert cash to other currencies or consolidated smaller amounts. Usage of remittance services or giro houses enables criminals to transfer cash between jurisdictions. Duynes empirical findings show that in both Bosphorus case and Mozart case, money launderers involved an extensive network of currency exchange offices. 2.3.3 Lawyers, Accountants and other Intermediaries Graham, Bell Elliott (2003) found that launderers usually use professionals to set up corporate and trustees to act as nominee shareholders or directors. These are of growing international concern. The clients account provides the launderer a hidden vehicle for depositing funds into the banking system. In selling their personal investment products, professionals provide useful means for money laundering. Johnson and Lim (2002) found that money launderers use more non-bank financial institutions and non-financial business like lawyers for money laundering. Their evidence supported that a weakening of the bank/illegal economy relationship, implies a lesser participation of the banking sector for laundering money. 2.3.4 Non-Financial Sector Services Graham, Bell Elliott (2003) also found that casinos, metal dealers and other high valuable goods sellers are money laundering techniques. These are done especially in cash purchase or substantial cash deposits. Distinguishing dirty money from legitimate gambling profits or losses will be quite difficult if the dirty money is changed into casino chips and then back into cash. Lloyd (1997) stated that whatever be the form of the jewelry, its value remains constant. Thus, a single piece of gold can be changed various times to disguise its origins without any significant change in its value. 2.3.5 Alternative Remitting Systems As per Graham, Bell Elliott (2003), popular within some ethnic groups, Hawala or hundi are alternative remittance systems used to transfer funds abroad. These systems function outside the regulated banking sector. Graham, Bell and Elliot (2003) added that it is believed that the Al-Quaeda terrorist organisation have used the hawala for the financing of 11 September 2001 event. 2.3.6 Exploitation of Internet Banking Services Exploitation of banking services and the use of developments in the internet are techniques used for laundering money. Actually, some banks dispense their clients of all contacts, thus no control over transactions exists. Example, the Fortis Bank in Luxembourg, offers complete e-banking services. 2.3.7 Use of Correspondent Banks Several international trustworthy banks have been involved in money laundering due to insufficient controls. Examples: Russian banking (Rawlinson,1996; Burlingame, 1997) Banco Ambrosiano (Cornwell, 1983) BCCI (Adams and Franz, 1992) Banque Crà ©dit Lyonnais: case of Parretti and Fiorini (dAubert, 1993) 2.4 Importance of Combating Money Laundering Over the last 25 years, the international community has made considerable efforts to combat money laundering. Countries realise that if they allow money laundering or fail in adapting correctly the AML procedures and the KYC principles, they run the risk of civil and criminal liability, reputation and regulatory risks. Moreover, Lasco (1997) mention that if governments are reluctant to accept the universal application of money laundering countermeasures, then its ills associated will damage the society. Bauer (2002) and Peter (2002) stated that in some countries like USA, the KYC principle has not been established firmly in legislation as it is under some European rules. Some intermediaries view money laundering regulations and laws as an annoying obstacle for trading. For example, it was feared that recent efforts in the Channel Islands for strict laws would decrease business volumes, but finally, the Channel Islands attracted more businesses. The Commonwealth Model of Best Practice for Combating Money Laundering in the Financial Sector suggests four principle reasons for money laundering (Graham, Bell Elliott (2003)). Failure to prevent money laundering allows criminals enjoying their proceeds, making crimes especially attractive. It also permits criminal organisations to finance other criminal activities, which eventually increase the level of crime. Unchecked use of the financial system has potential powers to weaken individual financial institutions, and finally the reliability of the whole financial sector. Moreover, it has adverse macro-economic effects affecting exchange rates during large capital flows and thus distorts resource allocation. Unchecked laundering may create contempt for the law hence, declining the confidence public has in the legal and financial system, resulting finally in a rise in economic crime. Money laundering eases corruption. Eventually, accumulation of economic and financial powers by immoral politicians or criminal organisations may undermine the country. Below are some summarised reasons why AML laws are required. 2.4.1 Unfair Competition Money launderers often use their proceeds to finance certain companies. This allows them to undercut innocent rivals and force them out of the market. Therefore, if left unchecked, money laundering may unfairly affect the pricing mechanism of the market system and create unnecessary distortion. Quirk (1997) studied that crime highly explains differences among the industrial countries; a 10% raise in crime leads to a 10% reduction in currency demand and a 6% reduction in overall money demand. 2.4.2 One crime generates further crimes Money laundering allows criminals to take full advantage of their crimes if not properly tracked down. This makes such criminal activities more attractive, resulting in its rise. Thus, one crime generates other crimes. Masciandaro (1998) stated that banks in regions of higher criminality have greater association with money laundering than banks in region of low criminality. From his hypothesis, Masciandaro (1998) proved that ‘the positive association observed between the banking sector and the illegal economy allows an assumption of an increase in laundered funds when illegal activities increase. Moreover, Masciandaro (1998) results showed that money laundering is a multiplier of criminal activities by providing criminals with cleaned money for reinvestment in their illicit activities. Masciandaro (1999) results also showed that there is an inverse relationship between the degree of diffusion of money laundering activities and the effectiveness of AML regulation in a given econ omy. 2.4.3 Corruption and Growth With large amount of money involved, money laundering has direct effects on economic crimes. Once corruption infiltrates the system, the whole machinery is affected and functions improperly. Public confidence in some fundamental institutions may be at risk and this can only promote crimes. Obviously, a corrupt society has no great hope for prosperity. Empirical results confirmed Mauros (1995) findings that low corruption affects growth positively. Mauro (1995) himself followed Barro (1991), and Levine and Renelt (1992) specifications which assess investment and growth responses to corruption. Quirk (1996) empirical evidence showed for the period 1983-90, significant reductionsin annual GDP growth rates and increase in money laundering are related. 2.4.4 Social Cost Quirk (1996) found that money laundering has important social costs when it facilitates crimes and corruptions within both the developing and developed countries. The International Narcotics Control Strategy (1998) confirmed that money laundering has devastating social costs and threatens the national security and McDowell and Novis (1998) added that money laundering erodes the confidences in markets. Additionally, Alweendo Tom K (2005) stated that crime and criminal activities work towards eroding these very basic individual rights. 2.5 Criminalising Money Laundering The key to making an impact in money laundering is to get all of the countries of the world to enact and enforce the same laws dealing with money laundering so the criminals have nowhere to go, Interpol expert Brown (1998). With new technologies, it is easier for sophisticated launderers to continuously look for opportunities available worldwide. The loopholes in other jurisdictions can frustrate efforts made by one jurisdiction to combat money laundering. Therefore, it is of global concern since no countrys financial system is protected from it. Quirk (1997) stated that money laundering has a considerable negative impact on the macro-economy, therefore it is urgent to adopt AML measures. 2.5.1 International Actions The international community are more aware of the dangers of money laundering, and many governments and jurisdictions have committed themselves to take international actions to combat money laundering. These began in 1988. 2.5.1.1 Basel Committee This statement they adopted in December 1988 outlined the following initiatives and policies that suggest financial services to implement. need for compliance with legal laws and guidelines, cooperation with national law enforcement authorities, implementation of record-keeping and transaction recording, staff training, KYC approach. 2.5.2 Vienna Convention Ashe and Reid, (1998) stated that the Vienna Convention established in December 1988 was the first treaty of global reach criminalising money laundering which creates an obligation for signatory states to criminalise such evil. It also includes the production, management and financing of trafficking operations as well as facilitating the commission of drug trafficking offences including money laundering. 2.5.3 United Nation (UN) 2.5.3.1 Global Programme against Money Laundering Through the GPML, the UN helps its member states with legal advice and assisting them in drafting appropriate legislation and establishing the necessary administrative structure to combat money laundering. The strategies include: provision of technical assistance to developing countries, organisation of training workshops, provision of training materials, transferring of expertise between jurisdictions, conduction of research, analysis and gathering of data. For its first operating year, the Program aided 20 countries and introduced a global comprehensive database on national money laundering legislation and the International Money Laundering Information Network on the Internet. 2.5.4 Financial Action Task Force FATF with its 34 members is an inter-governmental body which develops and promotes national and international policies to combat money laundering and terrorist financing. Established in 1989, FATF is a â€Å"policy-making body† that works to generate the necessary political willingness to bring about legislative and regulatory reforms. In 1990, it published 40 + 9 recommendations providing a comprehensive framework to fight money laundering. These were revised in 1996 and 2003 to ensure that they remain up-to-date and relevant to the money laundering growing menace. In 1995, the International Narcotic Control Board advised all governments to implement these 40 recommendations. 2.5.4.1 FATF Responsibilities: examination of money laundering techniques and trends, reviewing of action which had already been taken at a national or international level, setting out of measures that need to be taken to combat money laundering, evaluating countries in respect of their AML measures. Therefore, where weaknesses are found, countries are recommended to remedy the shortcomings the soonest. Failing, they are threatened of being blacklisted as non-cooperative jurisdictions. Naming and shaming them, FATF achieves its objectives of bringing countries to adopt appropriate AML measures. 2.5.4.2 The 40 Recommendations Recommendations 1-2: Scope of the criminal offence of money laundering Recommendation 3: Provisional measures and confiscation These are to be taken by financial and non-financial businesses and Professionals to prevent money laundering and terrorist financing Recommendations 4-12: Customer due diligence and record-keeping Recommendations 13-16: Reporting of suspicious transactions and compliance Recommendations 17-20: Other measure to deter money laundering and terrorist financing Recommendations 21-22: Measures to be taken with respect to countries that do not or insufficiently comply with FATF Recommendations Recommendations 23-25: Regulations and Supervision Institutional and other measures necessary in systems for combating money laundering and terrorist financing Recommendations 26-32: Competent authorities, their powers and resources Recommendations 33-34: Transparency of legal persons and arrangements Recommendation 35: International Co-operation Recommendations 36-39: Mutual legal assistance and extradition Recommendation 40: Other forms of co-operation FATF Annual Report 1996-97 added that earnings of offences like fraud and smuggling are also gaining importance. Moreover, commenting on the FATF Annual Reports from 1994, Johnson and Lim (2002) states that AML measures that some governments took, help in minimising money laundering and that with the imposition and enforcement of AML legislation, it will be harder for money launderers to clean their proceeds. Hence, preliminary evidence puts forwards that governments attitudes are important in either restricting or encouraging money laundering. However, Quirk (1997) mentioned that some governments could not implement the FATF â€Å"40 Recommendations† as this would go against the IMFs advice for liberalising financial markets. 2.5.5 International Monetary Fund The IMF has expertise in conducting financial sector assessments, providing technical assistance in the financial sector, and exercising surveillance over members economic systems, which is particularly helpful in evaluating country compliance with the international AML/CFT standards and in developing programs helping them address identified shortcomings. After the 11th September 2001 events, IMF continued to broaden and deepen its engagement in the global fight against money laundering and terrorist financing. March 2004 viewed an important moment. The IMF Executive Board agreed to make AML/CFT assessments and technical assistance a regular part of its work and to expand this work to cover the full scope of FATF 40 recommendations. Other international actions combating money laundering are the Egmont Group, the OECD, the EAG, the Asia-Pacific Group on Anti-Money Laundering and the E.U Directive. 2.5.6 KPMG report on Global Anti-Money Laundering Survey (2004) Aim: Whether the increasing globalisation of banking groups and of international regulatory cooperation resulted in an increase in consistency in the AML approach Methodology: The field research was done from 1st March 2004 to 26th March 2004 and 209 banks based in 41 countries responded. Consensus Research was charged by KPMG to conduct a telephone survey of banks across the main sectors. These banks were the 1,000 best global banks and local banks from seven regions as shown in figure 2 below. Figure 2: Analysis of Respondents by Region The figures 3 4 below are a detailed analysis of the respondents by region and country and an analysis of the respondents by industry. Figure 3: Analysis of Respondents Region by country Figure 4: Analysis of Respondents by Industry Results: high degree of commitment from the banking sector in the AML cause and provide opportunity for banks worldwide to assess and benchmark their own practices with those of their regional and international peer group. most respondents believed that the current AML burden is acceptable they were keen to work with regulators and law enforcements for the system to work more successfully. 2.6 In Mauritius 2.6.1 Financial Intelligence and Anti-Money Laundering Act (2002) The FIAMLA (2002) criminalises money laundering and is the legislation of AML. It provides for the establishment and management of a FIU and a Board to supervise its activities and provides for money laundering offences, reporting of suspicious transactions, gateways for exchange of financial intelligence information and exchange of mutual assistance with overseas bodies, all in relation to money laundering. FIAMLA (2002) under section 8 imposes high criminal penalty for money laundering offences. Any person who commits any money laundering offence shall, on conviction, be liable to a fine not exceeding 2 millions rupees and to penal servitude for a term not exceeding 10 years. Moreover, any property belonging to or in the procession or under the control of any person who is convicted of an offence of money laundering shall be deemed, unless the contrary is proved, to be derived from a crime and the Court may, in addition to any penalty imposed, order that the property be forfeited. It is worth noting that FATF experts concluded that although Mauritius has a regulatory regime for the financial service sector both locally and internationally, certain troubling characteristics were found. These concern the identity of the administrators and the real beneficial owners of offshore companies. However, the law on economic crime and anti-money laundering adopted on 13th June 2000 which has been taken on board in the FIAMLA (2002) has reinforced the existing legislation with regards to prevention and fight money laundering. 2.6.2 Prevention of Corruption Act (2002) The corruption component of the Economic Crime and Anti-Money Laundering Act (2000) was taken on board in the POCA (2002) which provides for the investigation of money laundering offences t

Marketing Plan For Perfume JAdore, By Dior Essay -- Fragrance Marketi

My product: Dior’s Perfume, J’adore 1. J’adore is a timeless fragrance by Christian Dior. It was created in 1999 and remains one of the most popular fragrances of the brand for women. Christian Dior, the father of the â€Å"New Look†, stated the principal goal to â€Å"save women from nature†. Dior is known everywhere in the world. â€Å"Absolute feminity† is one of the slogans for J’adore. 2. Dior uses different market segmentations to sell their product. First of all, there is a geographic segmentation. Perfumes are luxury products. Thus, they target wealthier areas like North America, Western Europe, Japan, etc. Since Dior is popular worldwide, we can obviously find it everywhere, but their market is based on these areas’ needs. Then, they use demographic segmentation. They target adult women who have quite high incomes. Perfumes are something not everybody can afford. This fragrance can be worn for any occasion, special as well as regular; it is light but demonstrates personality and feminity. They are trying to get a medium to strong loyalty status. As for any perfume, if a woman likes it; she will probably buy it again. It is a very accessible product. Any store like Macy’s, Nordstrom or Sephora in North America or â€Å"perfumeries† in Western Europe will sell J’adore. The segment is very large, because many people, even if they do not fall in one category, will buy perfumes for special occasions, like Christmas. This is a gift that always makes a woman happy, and Dior develops its marketing around that. Indeed, during Christmas, they make a lot of offers that combines a lotion with the perfume for example. Also, there are no separate segments between women; all women want to wear perfume. 3. There are many competitors when it comes... ...d is cold†) and diamonds. That was a big hit. That way, they made J’adore different from Chanel’s perfume. It was distinctive, because they communicated that the product was above the most precious materials, thus superior to the competitor’s product. It would be very hard for the competitors to copy this difference. The prices of J’adore, Coco Mademoiselle, or Ô are very similar. Thus, the customer would not have to pay a lot more for the difference. The smell of J’adore is just perfect for any occasion. It is discrete, but not anonymous. It gives an identity to the woman who wears it; it makes her feel good and confident. I think J’adore proposes â€Å"more for the same†. The price is almost the same as its competitors, but the quality, overall rating, and popularity is better. Resources www.chanel.com/fragrance www.lancome-usa.com/fragrance www.prada.com

Shareholder Wealth Maximisation

SHAREHOLDER WEALTH MAXIMISATION: SUMMARY ‘Business Finance’ assumes that the objective of a company is to maximise shareholder wealth. This means that companies should attempt to maximise the value of the shareholders’ investment in the company. This is achieved by maximising ‘Total Shareholder Returns’: dividends and share price appreciation.The most powerful basis for understanding and measuring shareholder wealth is the ‘economic valuation model’, under which the value of the shareholders’ investment is measured as the present value of future cash flows that are attributable to the shareholders. This approach involves converting future cash flows into their equivalent value in today’s terms, by adjusting for the effect of the ‘time value of money’. The ‘time value of money’ concept refers to the reality that ? 100 today is worth more than ? 100 in a year’s time.This is for three reasons: à ¢â‚¬ ¢ Inflation: which reduces the purchasing power of money over time †¢ Consumption preference: we prefer to spend money now rather than wait to spend in the future †¢ Risk: this refers to the variability of future returns from an investment. This time value of money effect means that shareholders require a rate of return from their investment in a company which is sufficient compensation for the time value of money effect that they suffer. This rate of return is known as the ‘cost of capital’.For a company to create wealth for shareholders, it must generate a rate of return which exceeds the ‘cost of capital’. Arguments in favour of ‘shareholder wealth maximisation’ being the assumed objective of the company: †¢ Shareholders are the legal owners of the company †¢ Shareholders bear the risk †¢ Assuming competitive markets, maximising wealth of shareholders should ensure the interests of customers and employees are al so met †¢ Decision-making is simplified Arguments against shareholder wealth maximisation: Some argue it will lead to the interests of other stakeholders such as customers and employees being neglected (eg through selling poor quality, over-priced products and providing poor conditions and rates of pay to employees). However, in competitive markets, arguably the only way that companies will create wealth for shareholders is by selling products/services customers want to buy, and therefore customers’ interests cannot be ignored. Also, the way to ensure customers’ interests are met is arguably by ensuring staff are well motivated and properly trained.Furthermore, employees prospects of having a secure and well paid job are improved by working for a company that is financially successful. †¢ Some argue that it will lead to ‘short-termism’ (decisions that improve short-term profits at the expense of long-term value, such as reducing research and deve lopment and marketing investments). However, the concept of economic value means maximising shareholder wealth should mean that long-term and short-term performance is captured.