Real Madrid

1. What is the Real Madrid business model? Is it unique? The Real Madrid business model is unique as it changed 360 degrees the concept of sports. They focused on converting Real Madrid into the new Disney of sports.. The club has been owned by its cardholding members and non-cardholding members. A network of fans has promoted the club’s name and ensured the flow of information. At first, by realizing that they can become content providers, Real Madrid aimed to be the best soccer club in the world. As a matter of fact the Real Madrid brand was desired to turn into an international brand. In order to be able to achieve this, its managers identified the following brand drivers: â€Å"(1) size of audience; (2) frequency with which the audience engaged with the brand, as a measure of commitment; (3) socio-demographic characteristics of the audience; and (4) bridges (usually in the form of local fan associations) that could be built to link the brand and the audience†. To get a large audience, passionate about soccer required a commitment to good players, commercialization of the brand and distribution of content (players and games). Real Madrid needed time and financial flexibility, in order to bring the top players and a variety of channels to bring the club’s brand on the market. For financial flexibility, Real Madrid managed to do the rezoning of the club’s old training pitches, recapturing exploitation rights sold off to various operators and licensees, setting up a stand-alone legal entity for management purposes, receiving a loan from Caja Madrid and pursuing opportunities for licensing and sponsoring of its products. To assemble is team of winning players, Real Madrid drew superstars like Zidane, Beckham, Figo, Brazilian striker Ronaldo, team captain Spanish forward Raà ºl, and Brazilian defender Roberto Carlos as well as goalkeeper Iker Casillas. The selling concept was that only the superstars can draw new superstars. In terms of brand and content, Real Madrid expanded the reach of its Real Madrid TV, developed RealMadrid.com and 1 on 1 fan relationships (mobile, TV, internet), and distributed its Real Madrid merchandise through its own stores and retail networks. In order to capitalize on its inner strengths, Real Madrid expanded to Asia and North America by gaining as much elasticity on their brand. 2. Who are Real Madrid’s customers? How is the market segmented? The Real Madrid’s customer are its supportive fans, cardholding and non-cardholding members. They have a love relationship with Real Madrid as they support only the winners and care about their hobby needs. 3. Who has more power – Real Madrid or the players? Real Madrid has an empowering brand power as they set up a leadership flag for quality soccer teams. The players pay for themselves, but as long as they don’t have a leading brand to promote them, they won’t grow on popularity and increase their royalties. 4. What risks does Real Madrid face? Real Madrid cannot capture superstars overnight. The churn rate cannot be controlled. New wealthy investors offer higher salaries to the superstars. Overexposure and excessive commercialization receives already enough criticism. Also in the end soccer is an uncertainty game.

The Role of the Media in the Violation of Children’s Rights

â€Å"Children have the right to reliable information from the media †¦.. [which]†¦.. should not promote materials that could harm [them]. † (UNICEF, 1991). There is hardly any restriction placed on the dreadful things that the media has to offer and so children these days have easy access to all that they should not be seeing or hearing in the media. This simply means that the media are not playing their role where protecting children is concerned. In today’s society where the mass media convey all form of negativity whether on the television, internet, videogames or even the radio, members of society need to become aware of what the younger generation are being influenced by so that values that are taught are not lost easily. The media violate the rights of a child by exposing them to crime and violence, giving them access to sexually explicit content and by creating a false sense of reality in which they believe almost everything they see. The media expose children to crime and violence on a daily basis. This is so because everyday at least child watch the television, listen to the radio, play video games or surf the internet. Huesman (1986) as cited in Kundanis (2003) is of the view that children with poor academic skills are more aggressive and are the ones who watch more violence on the television. It is believed that violence in the media leads to aggressive behaviour. (Abel, 2005, Huesmann, 1986 as cited in Kundanis, 2003 & Johnson, 1998). All of these authors believe that if children are exposed to violence in the media it will have a negative impact on them in which they will become aggressive. Children who behave aggressively tend to carry this behaviour with them to adulthood and sometimes cause damage to those around them. According to Johnson (1998), children act out what they see in the television. Most of the things that children act out are the negativities. These include smoking, killing, fighting and killing just to name a few. According to Johnson (1998) many believe that the parents are the ones to be blamed for children being exposed to crime and violence in the media. However parents can do so much and no more to put a stop to that. This is because, not all the time will they be around to monitor their children’s watching habits, the type of music they listen or the websites they visit. It is agreed that the can play a part in limiting it but not to the full extent. It is the media’s responsibility to protect children from materials that could harm them (UNICEF, 1991), however they are not playing their part and so children are at risk. Children need to be protected against anything that will in anyway seize their ability to grow up with the necessary morals and values. Being exposed to pornography will in some way hinder that. Based on a research done by Ybarra and Mitchell (2005) 90% of the children between the ages of 12 and 18 have access to the internet. The more access a child has to the internet, the more exposed he or she is to the internet. Once the internet connection is there, sexually explicit contents are just a click away. Most times when children are surfing the net a pop-up screen window appears telling them that they have won the lottery or sometimes it is in the form of something very attractive. This is to persuade them so that they will be curious about what is happening on their screen. While some will ignore it, there are others who will venture further into it not knowing what they are getting themselves into. Most of these things lead to pornographic contents. Children are unintentionally being exposed to sexual contents in the media (Ybarra & Mitchell, 2005). Most children log on to the internet with no intention of viewing porn however ends up doing just that. The media continues to exploit children’s rights by exposing them to pornography on the internet, in films and televised programmes (Media Code of Conduct, 2005). Even though the media commit themselves to ensuring that they do not violate children’s rights they are failing in the process. Children believe what they see on the media, whether it be true or false. This is because the media produces many things that appear to be real. Children look to certain television characters as their role model, whether they star in a movie, a television show or something of the sort. However, what they fail to realise is that most of the time what their role models are portraying is not necessarily a good thing. To children what is seen on the television is a representation of reality (Baran, McIntyre & Meyer, 1984). Therefore actions like smoking are acceptable and the amount they see on the television is normal because television is reality. According to Berger (2008) seeing is believing, so what a person believe is tied to what they have seen. Therefore when a child sees something he or she is confident that it exists. Seeing enables them to ascertain with their own eyes that it is in fact the truth. Even though the Media Code of Conduct states that they commit themselves to ensuring that the media does not violate the rights of a child, very little is done to prevent that. This is so because children are still being exposed to all the negativities that the media offers. Greater emphasis needs to be placed on protecting children from the dangers that are present in the media. This will enable every child to live a healthy lifestyle which they truly deserve. It is in fact the media’s role to fulfil their promise of protecting children from the harm and dangers that they offer.

Psychology †Aggression Notes Essay

Evaluate explanations of institutional aggression (16 marks) Strengths In Irwin and Cressey (1962) study they don’t look at inmates having one value. They look at the subcultures within prison. This shows the nature of the inmates as well as how they were brought up and accept other values. This is also supported by Blomberg & Lucken (2000) study on inmates. However you could counter this point by saying its reductionist because it reduces down behaviour to measurable units. Weaknesses Clemmer (1940) or McKorkle and Korn (1954) tend to suggest than inmates imported â€Å"one holistic† criminal subculture into the institution. By taking this holistic approach they are ignoring the biological approach. The importation model fails to provide suggestions for how to manage aggressive prisoners. Suggesting that you can manage prisoners and go against their freewill. Though they may be aggressive it might be because of how they were nurtured. Delisi (2004), it is unethical to give away possible private records. This could be seen as a breach of data protection. This can be linked to Issue and Debates. Especially the ethics and the confidentiality. AO3 – 4 marks – how science works: Methodological issues (internal validity, ecological validity, population validity, reliability) Bias (cultural bias, gender bias) Debates (nature/nurture, free will/determinism, reductionism/holism) Approaches (psychodynamic, cognitive, evolutionary, biological, behavioural) ethics A good psychology essay†¦ Be Selective In the exam you will only have 30 minutes per essay so you won’t be able to write the same amount you do at home, therefore it is important to make a few points and evaluate them well (possibly by using opposing points) rather than make loads of points and rush the evaluation. You do not have to mention everything in the book in order to get a good mark, it’s all about quality, so just make sure that if you say something, and it is relevant and well said. Use Evidence If you make a point, it is useful to have evidence from studies/experiments to back it up. You don’t have to go crazy with the methodology of these studies (but a little won’t hurt) but the most important thing is to state how the research supports/ does not support the theory in question. It may feel like you’re stating the obvious, but this is what gains marks. Use Issues and Debates Determinism, Reductionism, Gender Bias (Alpha and Beta), Culture Bias, Socially Sensitive Research/Theory, Reliability and Validity, just to name a few! They aren’t too difficult to work into your essay, but it is important you explain what each one means and how it relates to the theory in question. You won’t gain many marks if you list them without explaining them thoroughly. Be Synoptic This is really important. Could an idea be better explained by another approach? Has research in this area lead to any practical applications? (Such as treatments for psychological disorders) This will show your understanding of psychology in greater detail, and how it is important in real life. Look at the Bigger Picture Does this theory/research raise or lower the reputation of psychology as a science? E.g.: does it rely on scientific testing or is it speculative? Have other studies produced similar findings or do other studies tend to contradict its findings? Don’t be completely negative! Make some positive evaluations too, and when you criticise studies, you can always suggest ways in which they could be improved. You are expected to show a holistic view of psychology, and that means appreciating that there are both strengths and weaknesses to studies and theories. Look at your watch Remember; you don’t have much time to write your essays in the real exam, so try to stick to 30 minutes per essay. You’ll lose more marks by spending too long on one essay and not enough on another, than by writing all essays, but leaving a few points out. When Revising†¦ I find writing detailed essay plans helps, including notes on how I would evaluate. These would be far easier to memorise than whole essays, although writing practice essays may be beneficial too as it gets you used to time conditions. If you feel yourself getting stressed, or you are having a mental block, take a break- it is a sign you’re working too hard! The best thing for this is to get a drink (definitely keep fluid levels up!) get a little bit of fresh air, and take some time to clear your mind. Even if it feels like your revision isn’t getting you anywhere, it will be, so don’t panic too much! Reality is a painful thing It’s more than likely that you won’t be able to remember every minute detail, or remember everything you want to say in the exam, but don’t let this worry you too much- just make sure the points you do make are really well explained.

Tanglewood Stores - Measurement and Validation Essay

Tanglewood Stores - Measurement and Validation - Essay Example The  table gives a clear analysis of various variables. It shows an estimate of the correlation between some of the common predictors like education, managerial interviews, job experience and the measures /variables of performance, citizenship, absence along with other correlations between the proposed predictors like biodata, applicant exams, extraversion, consciousness and retail knowledge. Content validity of the methods of selection is one of the key questions that have to be addressed.There are quite a number of scales that Tanglewood proposed which perfectly match the content that they are intended to measure.And they also correspond properly with the specific work of store associates.  First, we have the retail market knowledge exam which comprises of questions that pertain to the industry and the uniqueness of Tanglewood in the industry. This is properly done and very relevant in the sense that it is related to the basic knowledge of some of the vital marketing principles.Marshfield applicant exam which aims at helping individuals to get some problem-solving abilities, accuracy and fluency in numerical concepts.The personality exam is aimed at identifying the various personality types of those intending to work with Tanglewood.This is necessary for it assists the management to understand the kind of employees to put in various departments. If Tanglewood is interested in getting some of the best people to work for them, there a quite a number of things that they must do. They should focus more on aspects like education of the individual, his or her competencies, the experience he or she has in that particular are to avoid hiring people who lack the know-how and ensure that they give them more training pertaining the kind of duties that the organisation offers. For instance, those in the human resource have to be assisted on how to hire the best people for particular jobs within the stores. The above names predictors are some of the best because they will  ensure that the organisation has people who are competent and know what they are required of by their employers.  

Project Essay Example | Topics and Well Written Essays - 3000 words - 1

Project - Essay Example There are several ways of gathering data. Data can be collected from primary as well as secondary sources. Data that are collected from the primary sources are called primary data and when they are collected from secondary sources, are called secondary data. In primary research direct interaction takes place between the researchers and the sample of the research as the data are collected directly from the sample. On the other hand in secondary research data are mainly collected from books, journal and scholarly articles that are already published. Less amount of cost is associated with secondary research as compared to the primary research, but on the other hand secondary data are not as reliable as primary ones. Moreover analysis of primary data is more convenient than that of secondary data. This research is based on the primary data that are collected by the help of a properly designed questionnaire which is one of the most important data collection tool. A questionnaire is consis ted of either close ended or open ended questions. Close ended questions are easier to analyze as compared to open ended questions. This is mainly because the answers of close ended questions can be put into statistical tools to analyse them, but it is not possible in case of answers of open ended questions. In quantitative research method it is very important to form a questionnaire that mainly includes close ended questions. However in case of a qualitative research open ended questions can be included in the questionnaire. This questionnaire is designed keeping the focus on the type of data that are required. The questionnaire is given at the appendices Questions are mainly asked to the parents and the teachers as the main objective of the research is to find out the positive relationship between the academic achievement of children and parental involvement. Teachers are also involved in the

Art History l - Identify the difference in statues. I will upload Essay

Art History l - Identify the difference in statues. I will upload pictures of the 4 - Essay Example The Chinese characters underneath the statue also reiterate this. The garb of people behind the Buddha is that sported by Chinese noblemen of their time. The Indian statue, like those from other regions, also has distinct regional features. He is attended by what seem to be Indian gods, carrying a round distinctly Hindu mace. What is more, the statue seems to be seated atop a throne that is carried by small folk, which shows the Hindu caste system, Buddha being Brahman is carried by those belonging to lower castes, with attendants belonging to his own caste. The Japanese Buddha statue has distinct Japanese facial characteristics, with almond shaped eyes squat nose and high forehead. The attendants of this statue, who seem to be long to the royal class, are dressed elegantly in the Japanese garb, with distinct Japanese styled crowns and ornaments. With Japan being a clear fiefdom, it is no wonder that the Buddha has been shown to be attended by royalty, thus, showing his high stature as per the Japanese

Discuss how recent changes in the law may impact on the tourism and Essay

Discuss how recent changes in the law may impact on the tourism and hospitality industry - Essay Example A series of constraints can appear causing severe delays to the completion of the relevant projects. Current paper focuses on the effects of law on the airline industry – emphasis is given on the aviation law of UK – as influenced from the European Union law. It is concluded that the update of legal rules related – either directly or indirectly – to the airline industry has affected the performance of the specific industrial sector. The character of the relationship between this industry and the law cannot be clearly specified – being characterized by benefits and drawbacks. However, despite the delays that the changes in the law have caused to the development of airline industry – in the context described below – still, it is necessary that the relevant measures are supported both by the entrepreneurs and the public. After a transition period, the benefits of these initiatives will be made clear – even if currently the introduction of the relevant legal rules is not fully justified. The needs of various industries in regard to their regulation can be differentiated. The characteristics of each industry and the level of its interaction with the public are usually of high importance in order to decide on the form of the regulatory framework developed for the particular sector. Under these terms, the needs of each industry in terms of law are defined by the following criteria: a) the position of the industry within the local economy, b) the structure of the operational activities of the industry’s firms, c) the practices followed in regard to the regulation of similar industries in the context of the international community, d) the rules developed by international bodies and which are binding for a specific industrial sector – for instance the rules of the European Union which need to be promoted within all member states. In the case of the airline industry, the elements of the legal framework used for the

LAND LAW Essay Example | Topics and Well Written Essays - 2250 words

LAND LAW - Essay Example Charlotte, who is William’s solicitor, is unaware of the previous arrangements done on the property1. Charlotte has acquired a register of the title to Abbey farm from the land registry. The register however does not show any connection of the farm with previous loan associated with Simon who is William’s brother. A mortgage entail transferring land interest as security for other obligation or loan as stipulated in a case of ROPAIGELACH v BARCLAYS BANK (2000). The court accorded the mortgagee a right over the property even in the absence of the mortgagor. Property and real estate laws cover a diverse legal area that is regulated by the common laws and statutes. Real estate is mostly linked with buildings or structures and the land. Real estate comprises land and the materials belonging to it. Immovable structures such as trees, houses, minerals and bushes attached to the land are part of it2. Owning a real estate comes with benefits such as rights and interests associated with it. Land and the attached properties have been utilized as security for loans in various occasions. William is utilizing his Abbey farm as security toward the loan acquired from the Loamshire building society. William is the mortgagor while the mortgagee is Loamshire building society. The society is providing loan in exchange of security interest3. Most lending societies usually set the maximum amount of money that can be borrowed and used as security. If the property to be used as security has a mortgage, a second charge is utilized. In reality the first mortg age ranks before the second charge created in partnership between William and the society. Since the registry applied by charlotte does not include Simon’s loan and the security information. It will be a challenge for Mark to defend Simon as a solicitor in cases where the security is not indicated. The law governing mortgage is aimed at preventing criminals from taking an

Business Plan for Loan Approval Assignment Example | Topics and Well Written Essays - 3500 words

Business Plan for Loan Approval - Assignment Example Falcon is likely to achieve 150 % of what its competitors are doing because of favourable location and other completive advantages. An initial market research finds that the firm would be able to achieve the 200% sales in the next 2 years from the date of commencement of business. At present there are three firms doing similar kind of business in the locality. But, all of them import from some other countries and pay high price for the goods imported. So the first and foremost key element of proposed firm's success is that MP3 players can be marketed at high margin where competitor have no market and at low price where they have market. Both strategies will result in high sales and income. Another key area to be focused upon to bring more sales is the introduction of innovative strategies. When the retailers are given special selling offers and discounts and long credit period to trustworthy customers, more sales can be brought in more turnovers and high profit. Similarly, human resources-the sales people- must be inspired and encouraged to market the product and make the product popular among the retailers. Last, but not least, management of finance must be given equal importance as any other resources. To start with the business takes partnership form of business with two partners of equal share. Accordingly, a partnership deed is created and the firm is registered as per the Partnership Act. It must be given in the partnership deed that both partners should take part in the business and have equal share in the profit earned and loss incurred by the firm. Once the firm achieves major share in the market, the firm is indented to be converted into a privately owned company with few more shares to be distributed among the relatives of the partners. After a few years of successful operation, the company will expand its operations to other markets with diversified products of similar nature. Then, the company will convert itself into a public owned company with limited liability to enjoy all the benefits of a Public Limited Company. 2.2 Start-up Plan The start-up plan begins with athree month start-up period (September to December, 2008). During this period the firm will give emphasis primarily on setting up an office premises and developing an efficient and effective marketing plan and resources including sales personnel. The start-up expenses include expenses associated with opening an office, legal expenses, initial marketing expenses and those associated with hiring people.A part of the initial expenses can be met with the legacy amount inherited from one of the partners' uncle. The rest of the expenses is intended to be met out of the loan sanctioned by a bank. The expansion expenses in future are financed from sales revenue. Initially, the firm is leasing a property in our local high street for which an amount of 200,000 pounds has to be given to purchase the leasehold of the property for ten years in addition to a monthly rent of 15,000 pounds. The following office equipments are necessary at

A central assumption made in Mean-Variance Analysis and the Capital Assignment - 2

A central assumption made in Mean-Variance Analysis and the Capital Asset Pricing Model (CAPM) is that investors prefer to invest in the most efficient portfolios available - Assignment Example An efficient portfolio is a collection of investments that provide the highest expected return at the given level of risk or portfolio that yield the lowest risk at given expected a return. Expected return is the minimum return expected by investors investing in any given asset. The risk occurs due to deviation from the expected return in either case as explained by Markowitz. According to Markowitz Portfolio Theory, individuals who accept to take high return with high-risk cannon diversify further without acceptance of greater risk. On the other hand, individuals will not agree to reduce their return without reduction of risk. This fact explains why low-risk, low-return and high-risk, high-return portfolios are equivalent when it comes to investing. Markowitz (1952: 77) believes that portfolio choice is dependent on maximum discounted risk venture which will give a high return since the future is uncertain and assurance of money back on investment should be assured. The low-risk, low-return investors motivated by low risk in an asset they are investing in will invest more getting quantifiable income. On the other hand, high risk – high return individuals will tend to invest in minimal assets with high risk, but getting a quantifiable return due to their nature of the high return. As argued by Markowitz (1952, p, 77) investors should not just go for high return high-risk investment rather they should focus on the expected return. An investor may go for high-risk, high return bonds, but in case of failure, the return will be greatly reduced. On the other hand, an investor may go for several low-risk, low-return, but the cumulative expected return will be high (hypothesis of the maxim by Markowitz 1952: 78.). According to maxim hypothesis, both diversified and under-diversified assert will have the same cumulative expected return. In the United States, the under-diversified portfolio is greater among young people,

Why a Firms Market Value Differs From Its Book Value Essay

Why a Firms Market Value Differs From Its Book Value - Essay Example This paper illustrates that the role of book values of companies is losing its importance as it tends to be usually lower than market value. The approach taken for accounting is past-oriented from the market value which denotes mostly the companies earnings and hence the difference. This occurs because for evaluation of the real value of a company it takes into consideration its earnings measured in money as well as other intangible and tangible assets etc., also unlike the market valuation. There are many evaluation methods followed and the most relevant of them are the evaluation based on the Economic Value Added (EVA) which is Net Operating Profit Minus Adjusted Taxes reduced by (Invested Capital*Cost of Capital). This method takes into account the opportunity costs of capital. EVA too suffers from the drawbacks as from accounting. Another theory, Shareholder value theory suggests that through the interests of the stakeholders, the shareholder value can be reaped. This is for ensu ring return satisfaction to all the interested parties in the long run. The stakeholder theory aims at a collective interest of all stakeholders or sees the realization of their goals as the ultimate objective. Double value creation system is also followed where a company increases its customer value through its operations as well as creates its shareholder value through the sale of its product. Thus, it could be noted that the company value could be increased only if both the shareholders and stakeholders interest are considered simultaneously while doing the performance evaluation. This results in the distortions or disparity between the MVE and the CSE (market value and book value) and the conditions for this are (i) Economic rents (unbiased accounting) (ii) Accounting distortions (Perfectly competitive equilibrium) Thus, the information bearing upon the performance evaluation of a company helps in explaining the reason for the difference between the market value and the book val ue. Ideally, it could be inferred that the most important things to be considered in value creation processes are: 1) The Performance evaluation should be able to provide information for proper decision-making and ensure feedback. 2) The kind and nature of the information collected and the source from which the information is collected for valuations are therefore significant. The source, its nature, the methods used for valuation, the coherency, the adaptability with the strategic objectives etc serve as crucial indicators.

Introduction to Cross-Cultural Psychology Essay Example for Free

Introduction to Cross-Cultural Psychology Essay Having culture as a field of psychology makes sense because culture plays a significant role in everyday life. Culture allows someone to define who they are how they survive. Expressions of who one is can be done in many ways, by behavior, appearance, and language. Without culture, one’s human nature would rely on instinct to remain alive. Culture is a product of one’s environment. How important culture is and how culture influences oneself and others will be discussed in this paper. Examining various types of relationships as it pertains to culture and cross cultural psychology will also be deliberated. Critical thinking and the role it plays in cross cultural psychology and the use of scientific method will also be covered. Definition of Cultural and Cross-Cultural Psychology There are many avenues when looking at what culture stands for, but for most there is an agreement that culture is passed down from one generation to the next, there is a strong influence of molding one’s behavior, and that culture is learned. One’s environment is based on the culture that he or she is subjected to. Culture influences humans in many ways that is what makes humans human. Culture separates individuals from any other species and affords one the opportunity to use instinct and cultural knowledge to survive. Culture is woven into one’s fabric of daily life, and aids in how one interacts with others. By definition psychology is the study of performance and human behavior, so when tying to define one’s actions, it is imperative that incorporating one’s culture into the equation. See more: how to start an essay The behaviors of a person can be directly related to the environment or various biological factors, but, behavior can not be solely answered by just those two things without examining the social cultural conditions which impact that person’s behavior. Cultural psychology looks for the connection between psychology and one’s culture. By looking at this link the correlation between culture and behavior is recognized. Acknowledging this permits that cognitive operations are the variable in culture and oneself based on the environment that he or she is surrounded by (Segal, Dasen, Berry Poortinga, 1999). Culture can bring people together as well as separate others. Cross-cultural psychology is a newer specialty in the field. This field does not just focus on one specific culture when attempting to clarify the actions of someone’s behavior. Rather it views many different cultures that could be affected a person. It is imperative to know not to confuse race, ethnicity and society with culture. They do offer a look at a person’s individualism but it is different than one’s culture. A society consists of people where a culture is a common interest shared by persons with in a group that lead to a given behavior. To understand human behavior, viewing other approaches like sociological, cultural mixtures, integrative approach, eco-cultural and evolutionary all help in understanding how a human’s behavior could fluctuate based on. For example, when looking at the evolutionary approach views the biological factors contributing to the behavior over the eco-cultural approach views the environment (Shiraev Levy, 2010). The Relationship between Cultural and Cross-Cultural Psychology There are two different disciplines, anthropology and philosophy, that overlap in cultural psychology. Then reviewing other disciplines there is a wider viewpoint when researching various actions that others do. The purpose of cultural psychology is to unearth how someone’s culture affects behavior as well as how the connection is generated. Human energy cannot be the only factory determining one’s predisposition. Cultural psychology interprets that one’s mind should not be viewed as separate when explaining behavior. However, cross culture psychology relates to not only history and anthropology but also similarities and differences between histories. Regardless, both disciplines take into account culture so their foundations are close. The difference occurs because cultural psychology is interested in the relationship with culture someone has versus cross-cultural being interested in comparison on cultures (Shiraev Levy, 2010). The Role of Critical Thinking in Cross-Cultural Psychology Using critical thinking the right way, there are many ways that critical thinking that be a benefit. Life can be complex and complicated to understand. Critical thinking provides someone the ability to steer through life with a certainty. This being said, critical thinking is learned, not n inherited trait. Being able to think hypothetically, decrypt puzzles, synchronizing thoughts and communicating all require critical thinking. Using critical thinking means that one asks questions that will ultimately solve problems. If someone is unqualified or unskilled, it is possible they will not develop to full potential. By developing the critical thinking skill, this means that one could grow and learn. The use of language, patience when making important decisions, and ability to organize (Hunter, 2009). All of those that were mentioned are influences in cross-cultural psychology. Language can lead to discrimination for example. The way words are translated can be confused because of the way that it is understood. Translating word for word could lead to an incorrect translation. Understanding that any language can be translated into other meanings causing traumatization or inspiring depending on the interpretation. The research is another part of cross-cultural psychology that is attached to critical thinking. Research that is conducted without bias, emotion, choosing right from wrong, and accepting validity and reliability of that research is a form of critical thinking. It is normal for there to be comparisons made when linking groups or cultures. Here are a few instances how critical thinking and cross-cultural psychology are intertwined. Without a critical thinking understanding how culture affects behavior could form the wrong impression (Segal, Dasen, Berry Poortinga, 1999). Methodology Associated with Cross-Cultural Research Research is a critical part of cross cultural psychology. Without having research the only information about cross-cultural psychology would be assumptions. Psychologists who focus their studies on cross cultural psychologists are intrigued with the commonalities between cultures. As psychologists explain, foretell and manage various behaviors of those they observe they do so because humans are consumed with the interactions he or she has with others resulting in behaviors. Generating research is done by scientific investigation. Cross cultural psychology research is subdivided into quantitative and qualitative research. Quantitative research is done through observation by mode, median and mean. Qualitative research is nconditioned settings or a natural setting. This method is picked when the variables are impossible to gather because the tools are not available. There are two different strategies that are also available to use; the application orientated and comparativist strategy. The data collected by these strategies can be done through systematic or random sampling (Shiraev Levy, 2010). â€Å"Observation (naturalistic and laboratory), survey (direct and indirect), experimental studies (independent and dependent variables), content-analysis, psychobiography, meta-analysis, focus-group method† (Shiraev Levy, 2010, pp. 5-40) are all available to psychologists who are interested in cross cultural insestigations. When using cross cultural psychology hindrances could occur. Language could create problems when completing research consequently ensuring correct translation is of the utmost importance. Investigators should be able to decipher a specific method as realistically as possible. Attention should also be paid when associating two phenomena and also avoid biases at all times (Shiraev Levy, 2010). Conclusion Since culture plays a vital role in one’s life, it is critical to recognize that it is what causes one’s behavior. Culture is manmade and appears all of the time without much thought. It is important for one to be a successful psychologist that there is a clear understanding of both cultural and cross cultural psychology and how it effects the individual as well as his or her environment. Because of cultural psychology one can trace the connection between culture and psychology and eventually behavior. Viewing various parallels in cultural psychology can help see the differences as well as similarities between cultures and how it impacts one’s actions. Without it, there will always be a mystery surrounding humanity.

Dividend Payment Impact on Common Stock Prices

Dividend Payment Impact on Common Stock Prices Abstract The main goal of this paper is to investigate the impact of dividend payments on common stock prices using a panel of listed firms in Tunis Stock Exchange for a period from 2000 to 2008. Our empirical investigations reveal that Tunisian investors reward firms paying cash dividends. This result is very interesting because it begs the question on the intention of Tunisian managers to pay dividend when investors put a stock price premium on payers as the catering theory suggests. 1. Introduction In efficient and perfect market, Modigliani and Miller (1961) have demonstrated that there is no difference between the value of the firm paying dividends and that of nonpayer. Baker and Wurgler (2004a) argue that the investor demand for dividend-paying stocks depends on either psychological or institutional factors. They argue that managers tend to pay dividends when investors put higher prices on payers, and they omit dividends when payers are at a discount. Baker and Wurgler (2004a) suggest that this catering behavior explains the difference documented between the average market-to-book ratios of payers and non-payers and that managers rationally initiate dividends to exploit an apparent market mispricing. They find that when the rate of dividend initiation increases, the future stock returns of payers are lower than those of non-payers. This result supports the hypothesis that firms initiate dividends when the payers are overvalued. In this paper, we attempt to investigate whethe r cash dividend payments affect positively share prices. The remainder of the paper is organized as follows. Section 2 reviews the literature on dividend payout policy. Section 3 provides a description of the data used in the empirical analysis and presents regression results for the determinants of stock prices. Section 4 concludes. 2. Literature Review Baker and Wurgler (2004b) show that the disappearance of dividends can be explained by lower market valuations of payers during such periods. They find that the propensity to pay increases when a proxy for the stock market dividend premium is positive and decreases when it is negative. These empirical results suggest that the distribution of dividends responds to patterns of market timing. Companies pay dividends in order to raise the stock prices of their shares above their fundamental values. However, we wonder why the demand for shares paying dividends changes over time? Baker et al. (2007) argue that this time-varying can be attributed to changes in income tax rates of shareholders. Baker and Wurgler (2004a) note that the increase in the value of a company paying dividends reflects the risk assessment by investors. Indeed, dividend-paying firms are considered less risky than non-payers ones since this dividend premium disappears in periods of expansion and reappears in recession periods. Thus, investors who prefer cash dividend payments during gloomy period as an indicator of the firms safety and therefore are more willing to pay dearly to buy dividend-paying stocks. Ferris et al. (2006) conclude that the decline of the number of dividend-paying firms in UK can be explained by a shift in catering incentives. Li and Lie (2006) suggest that changes in corporate payout ratios of US firms depend on the market dividend premium. Ferris et al. (2008) find that investors place high value on dividend-paying firms. By contrast, Eije and Megginson (2008) investigate dividend policies in fifteen European countries over the period 1989-2003 and conclude that their findings do not support the catering hypothesis. Denis and Osobov (2008) find that reductions in the percent of dividend-paying stocks occur in countries where the dividend premium is largely positive. Tsuji (2010) finds that Japanese corporate managers do not cater to investors in either their dividend initiation decisions or their continuation decisions. 3. DATA and Methodology To form our main Tunisian sample, we start with all listed firms appearing at any point between 2000 and 2008. We restrict the sample to exclude financial firms  [1]  . The final sample covers 24 publicly traded Tunisian firms. Data were collected from Tunis Stock Exchange and completed from firms web sites. 3.1 Definition and measurement of variables The evolution of stock prices can be explained by variables specific to the firm such as cash dividend and profitability, by macroeconomic variables such as interest rates and inflation, and a variable which reflects the stock market performance. 3.1.1 Dividends According to the model of Gordon and Shapiro (1956), the current stock price equals the present value of its future dividends. Gordon and Shapiro assume that the dividend is a constant fraction of the profits carried out by the company. The expected receipt of dividend income is an incentive for investing in a given stock, particularly if the yield on the investment exceeds the return offered on other alternative investments like savings accounts. Investors may pay a premium for shares in issue. Tsoukalas and Sil (1999) find a strong correlation between the stock prices and dividends paid by U.K firms. 3.1.2 Profitability An improvement in profitability leads to an increase in stock price because investors become more optimistic about future performance of the firm. Demand increases for the shares that have a high prospect for growth (blue chip shares). Prices of such shares rise much faster than those of companies whose growth prospects are bleak. Vuolteenaho (2002) finds that firm-level stock returns are mainly driven by cash-flow news. By contrast, Kothari et al. (2006) show that stock prices are unrelated to past earnings and depend negatively on concurrent earnings. In this paper, Profitability is defined as earnings before interests and tax reported to total assets. 3.1.3 Inflation The impact of inflation on the stock price is not obvious. If households expect higher prices, they can increase their consumption and therefore reduce their savings. This behavior will lower stock prices. By contrast, if households choose to keep the value of their heritage, they will be more likely to invest in shares in order to hedge against a rise in the general level of prices of goods and services. Indeed, inflation erodes the purchasing power of money and other financial assets that have fixed values. Therefore, if households have a hedging purpose, inflation will have positive effects on share prices. Alagidede and Panagiotidid (2010) provide evidence of a positive long-run relationship between stock prices and inflation in five African countries (Tunisia, Egypt, South Africa, Kenya, and Nigeria) and they conclude that common stocks in these countries represent a hedge against rising consumer price. Geyser and Lowies (2001) examine the relationship between share prices and inflation within a sample of firms listed in Namibian and Johannesburg Stock Exchanges. Their findings reveal a strong positive correlation between inflation and stock prices of Namibian firms. In South Africa, companies belonging to the mining sector cannot be served as an inflation hedge since stock prices of these firms are negatively correlated with the evolution of the Consumer Price Index, whereas stock prices of firms in other sectors (financial services, information technology and food and beverage) are slightly positively correlated with inflation. Bodie (1976) finds that in the U.S during the period from 1953 to 1971 common stocks failed to serve as hedges against either anticipated or unanticipated inflation. The inflation rate is defined as the percentage rate of change in consumer price index. 3.1.4 Interest rate The impact of changes in interest rates on stock prices is mixed. If rates rise, bonds become less expensive which encourages shareholders to arbitrate for bonds by selling shares that they hold and therefore stock prices fall. By contrast, a significant decrease of interest rate makes shares more profitable and persuades investors to buy back equity and pushing up prices. Cifter and Ozun (2008) find that stock prices in Turkey are negatively affected by the interest rate changes. represents the money market annual average rate for Tunisia. 3.1.5 Stock market performance A bull market is characterized by higher valorizations and a bear market is characterized by lower stock prices. In this paper, we used annual return rate of the index TUNINDEX to measure the performance of Tunisian stock market. 3.2 Descriptive statistics  ¶ Table 1 reports descriptive statistics for the dependant and explanatory variables. We note the higher level of the money market annual average rate that can be explained by the important rising consumer price Tunisia. The mean of the natural logarithm of dividend is negative suggesting that Tunisian firms pay annually on average less than 1 TND as cash dividend. Insert table-1 here Table 2 reports the correlations matrix for explanatory variables. The coefficients of correlation of explanatory variables are generally low. Using a test of Farrar-Glauber (1967), we can accept the hypothesis of the absence of multicollinearity among our independent variables. Insert table-2 here 3.3 Estimation methods The study was conducted on panel data. Using panel data can enhance the quality and quantity of data. It allows us to identify some effects that cannot be detected using time-series analysis. Panel data regression provides three estimators; pooled OLS, fixed effects, and random effects models. A pooled estimator takes as the same across all cross-section units. The fixed effects model assumes as a group specific term. The random effects approach takes as a group specific disturbance. Testing the significance of the group effects To choose between these three approaches we compute a test of homogeneity. The hypothesis of homogeneity of constants across all cross-section units can be formulated as follows: This test of Fisher is computed as follows: Where: : Residues square sum of the individual effects model : Residues square sum of the model Pooled. : Number of firms : Number of explanatory variables (constant not included) If calculated F is lower than tabulated F (p-value Hausmans test for fixed versus random effects If the effect is assumed to be individual, the Hausman specification test is carried out in order to decide whether the fixed or the random effects model should be used. The Hausman test compares the fixed and random effects estimates of coefficients. The tested hypothesis concerns the correlation of the individual effects and the explanatory variables. Under the null hypothesis, the individual effects are random and we then have to choose the estimator of GLS. Under the alternative hypothesis, the individual effects are correlated to the explanatory variables and we then have to choose the model to fixed effects. The test of Hausman compares the matrix of variance-covariance of two estimators: The statistic H is asymptotically distributed as with K degree of freedom, where K is the number of explanatory variables. If calculated H is lower than tabulated (p-value 3.4 Findings Table 3 reports regression results. We provide Pooled OLS, fixed effects and random effects results. The Hausmans test confirms that the estimator fixed effects is the proper one. Insert table-3 here Cash dividends have a significantly positive impact on stock prices of Tunisian firms. This result indicates that Tunisian investors reward cash dividend-paying firms by adding a positive premium to their shares prices. The profitability has a positive impact on stock prices. Highly profitable firms have higher stock prices. If the firm releases new positive results, investors will be more optimistic about its prospects and expected future cash flows and therefore they will be willing to pay dearly to buy its securities. The variable MARKET that measures the performance of Tunis stock exchange presents the expected sign. This result indicates that stock prices follow the overall trend of the market. Inflation affects negatively and significantly stock prices suggesting that common stocks of Tunisian firms cannot provide a hedge against inflation. The plausible explication for this result is that an increase of the consumer price index reduces the marginal propensity to save. Our result confirms findings in Geske and Roll (1983). 4. Conclusion This paper investigates the impact of cash dividend payments on stock prices of listed non-financial Tunisian firms. Our empirical results reveal that Tunisian investors reward cash dividend-paying stocks. This finding begs the question on the existence of a catering behavior as suggested by Baker and Wurgler (2004a). Future academic studies with larger datasets should investigate whether Tunisian firms behave according to the prediction of the catering theory by comparing the value of payers and non-payers firms.

LOreal International Strategy

LOreal International Strategy The cosmetic industry can be analysed using Porters five forces framework, by identifying threats of New Entrants, Industry Competitors Suppliers, Substitutes and Buyers. According to Euromonitor International (2008), the threat of new entrants into the cosmetic markets is low, considering that majority of the market is already owned by leading companies such as LOreal, Unilever, Proctor and Gamble (Appendix 4). Hence, it would be extremely difficult for a new firm to establish their brand name, due to the intensity of competition. Since there are few differentials between products, and due to strategic objective of growth by business rivalry is high. Porter (2004) Therefore it can be argued the American barrier to entry into the industry is fairly low, which is a key driver for globalisation. However if a new firm is unable to compete there is the possibility of business failure or threat of being acquired by leading manufactures. Due to the industry leaders acquiring a variety of cosmetics, hair and beauty companies, consumers have the option of an array of substitute products; as a result this lowers the industry attractiveness and sets a limit on price levels. However in order to overcome the issues LOreal have established a prestigious brand image based on quality and allowing them to higher price compared to their competitors. This allows the bargaining power of buyers to be greater, since there are many sellers in the industry and fewer dominant buyers. The bargaining power of supplier is currently low, since majority of the establish firms do not require dependence on suppliers to supply cosmetic products. Porter (2004) Therefore in order to identify LOreals position with in the industry a SWOT analysis has been conducted, (Appendix 2). LOreal, How it Began The French company LOreal started in 1909, with production of worlds first hair colour product. The products were first sold in Parisian hair salons, using very tight production, sales and marketing strategy and by 1912 the products were distributed in other European regions such as Italy and the Netherlands (LOreal: 2010). According to LOreal (2010), in order first build on their brand portfolio, the company had acquired a number of French companies such as Lancome and Garnier, thereby diversifying into other markets, such as upscale perfumes and cosmetics. The acquisitions had allowed LOreal to increase their range of products among mass distributors and by 1970 eighty percent of company sales were coming from France, (Cardona: 2000). Hence the company became Frances leading beauty company, however the international presence was still little and the concept of expensive Parisian products by consumers limited LOreal ability to expand into international markets. According to Cardona (2000), LOreal first entered the American Market in 1954 by forming a licensee with the cosmetics and hair product company Cosmair Inc. Licensing as method of entry into the market involves LOreal granting rights under contract to intangible property. This had LOreal at began by distributing their products to U.S. beauty salons, however the company presence was still small due to the company brands being managed individually. Hence, without a licence it could have proven difficult for LOreal to enter the market, consider that there product was unfamiliar to the American market. Also this had allowed LOreal to understand the American market, the buyer behaviour and level of competition. However, According to Bartlett and Ghoshal (1989) the disadvantage of this method is it forces LOreal to depend on the skills, abilities and resources of the licensee as the source of revenue. However it is further argued by Cardona (2000), that LOreal acquired Cosmair Inc in 1994, which enabled the company to further strategise its influence in the American market and acquire cosmetics company Maybelline in 1996. According to Ono (1995) Maybelline was Americas third largest cosmetics company, sold mostly in supermarkets, cosmetic speciality stores and mass market discount stores. LOreal believed by improving the Maybellines products, marketing and brand image would give the products huge international potential. According to Edmondson et al (1999), this gave LOreal entry into the younger consumer base from the affluent European consumer base, due to its strong American brand image. Maybelline was a cheaper product, carried a wider distribution network and a wider product range which appealed to a vast number of ethnic consumers in America and outside. As a result, LOreals sales from Maybelline outside the United States had grown by fifty percent (Edmondson: 1999). The acq uisition of these businesses gave LOreal a seventeen percent share of the $2.3 billion U.S. cosmetics industry, (Ono: 1995). Therefore it can be argued the mode of entry into the market soon developed into strategic acquisitions, in order to pursue the strategy of growth and internationalisation. This method according to Bartlett and Ghoshal (1989), allows LOreal spread risk and reduce the level of competition since rivals are take over. This has also given LOreal greater market share for horizontal integration within the industry and thus allowing them to charge higher price for their products. However Bartlett and Ghoshal (1989) further argue this mode of entry can often cause clash in cultures, which is discuss further in this report. According to LOreal (2010), during 1980s the company had purchased stakes in two additional American companies, the cosmetics maker Helena Rubinstein and Ralph Lauren Fragrances. Both firms were later fully acquired in 1988 and 1990. Weil (2006) argues, even though Helena Rubinstein had lost most of their product appeal among American consumers, LOreal believed with effective merchandising and a complete re-launch of the brand, the products would be successful in the U.S. Market. This was due to the brand having a good position in other regions such as Europe and Asia, where Helena Rubinstein products were considered upscale, according to Weil (2006). On the other hand, the acquisition of Ralph Lauren Fragrances was completed in order to strengthen LOreals luxury products division, which possessed a smaller mass market fragrances brand (LOreal: 2010). Due to Ralph Lauren established brand image and excellent distribution networks with stores such as Saks Fifth Avenue, it had allowed LOreal to enter a younger consumer market. It had been identified that the key acquisition for LOreal in order to increase their global presence was through the purchase of Kiehls, in 2000. According to Anon (2000), Kiehls was a important addition to LOreals luxury product division, offering a diverse range of specialised products for the high cost segment of the market from perfumes, skin, body and hair care. Thus by acquiring Kiehls, LOreals was able to increase their product range and influence on American society. Considering that LOreal had expensive multi-million pound advertising campaigns, Kiehls did not require such advertising due to exclusivity of the products at the time and its recognition among famous individuals (Anon: 2000). This had allowed LOreal to grow, with the company revenue increasing yearly, (LOreal: 2009). Therefore the acquisitions of such major U.S. companies allowed LOreal to increase its global presence and enter new emerging markets. Also the company has been able to develop an effective internal organisation, which is split into Consumer Products, Professional Products and Luxury Products. Due to these factors approximately twenty to twenty five percent of the company annual revenue comes from the United States (Cardona: 2000). Diversifying into Other Markets LOreal had acquired the professional hair product company Redken in 1993. This acquisition had allowed LOreal improve the structure of their hair product division, due to Redkens extensive distribution networks (LOreal: 2010). Hence LOreal had reassessed the company hair care division to focus on the sales to salons and hairdressers. Compared to the European market where luxury hair products were sold in department stores, in the U.S. luxury hair products were primarily sold in hair salons and speciality beauty supply stores. According to Nichol (2010), LOreal was able to increase their revenue, since sales from salons carried a higher profit margin compared to mass market hair products. Hence, LOreals sales from the professional hair care division had provided one third of the companys sales from hair care (LOreal: 2010). According to Morais (2000), in 1998 and 2000, LOreal had made a combined strategic acquisition of the companies Soft Sheen and Carson, in order to enter the ethnic hair care market. Soft sheen was one of the leading American ethnic hair care products and Carson had an eighty two percent share of the U.S ethnic hair care market. Rhea (1997) argues in particular the acquisition of Carson had helped LOreal to entire the South African market which was worth an estimated market value of one billion dollars, due to the establish presence Carson had already developed. LOreal had saw the entrance into the American market particularly important, since African Americans represent 12.85% of the American population (Appendix 1) and accounted for thirty percent of the total U.S. hair care expenditure, totalling $1.2 billion in 1997 (Morais: 2000). The purchase of the companies allowed LOreal to increase their distribution channels further, since majority of sales come from wholesales such as Costco and beauty shops. According to Morais (2000), the market is fragmented, and mostly responsive to word of mouth, hence does not require much advertising or promotions. From the analysis it can be identified that LOreal has followed the Uppsala Model (Appendix 6) in the process of internationalisation. The model illustrates the gradual international expansion of the company by the four stages. In stage one; it was LOreals objective to first build a presence in the American market through a licensee with Cosmair rather than make a large foreign direct investment. This allowed the company to develop market knowledge in order to control the international expansion within the American market. Therefore this method of entry was the most idyllic approach for LOreal, since according to Forsgren (2002) business will enter a new market using the lowest possible resource commitment and expand from there on to establish the firm. As a result, LOreal was able to control the level of risk and eventually increase resource commitment. In Stage two, LOreal had exported their products through independent representatives in America through regional middlemen. In the third stage, LOreal had made establishment of sales subsidiary through Helena Rubinstein and Ralph Lauren Fragrances. According to Forsgren (2002), in this stage LOreal is able to collect about market conditions, leading to a more wide market experience and give greater information regarding factors of language, culture and political system. In stage four LOreal had established a foreign production facility in the American market. Intensity of Competition for LOreal As seen on Appendix 4 the level of competition in the cosmetic industry is high however due to LOreal strategic international strategy the company has been able to be the industry leader. This was accomplished due to LOreal developing brands in different market segments and vast distribution channels in mass market, hair salon products, pharmacies and department stores, (LOreal: 2009). Due to the companys operations in different markets, LOreal experiences a high number of challenges from competitors in different markets. According to Drier (2004) in the consumer cosmetics division, the main competitors for LOreal are Proctor Gamble, Revlon and Unilever. Similar to LOreal, Proctor Gamble had established brands in health, beauty as well as household care. The company become a major competitor for LOreal due to the companys acquisition of Clairol in 2001, Gillette in 2005 and majority stake in hair care brand Wella in 2003. Hence, Proctor and Gamble was one of the leading cosmetics businesses in the United States, where it had a seventy percent share of the American market from its hair colour brand Clairol (Drier: 2004). Hence a key globalisation driver for LOreal was to enter the hair care market, which was accomplished by the acquisition of Redken and rather than mass-market LOreal concentrated on specialised hair salons. In addition, Unilever had also streamlined their brand portfolio, by developing similar strategies to that of LOreal and Proctor and Gamble. The company had developed a competitive advantage by identifying potential acquisitions. For example, the purchase of American business Chesebrough-Pond, allowed Unilever to become one of the world leaders in personal care and cosmetics, (Anon: 1997). Therefore in order to compete, LOreal has developed their competitive advantage by positioning the business above the drug store cosmetic brands such as Revlon. Their marketing strategy has allowed them to establish a prestigious brand name; LOreal has been able to charge high prices. According Trout and Rivkin (2009), in order for companies to charge higher prices, the products should offer prestige, thus consumers will pay a little more for the perceived value. Hence, by putting a particular emphasis on their packaging and advertising campaigns using celebrity models, the company has perceived the brand as elegant among consumers, (LOreal: 2010). It can also be argued that LOreals factor of success in the industry is due to being able to develop a comparative advantage over competitors by making a powerful commitment to research and development. According to (La Roche-Posay: 2005), the company had invested $612 million on research in 2005, which was three percent in turnover compared to the industry average. As a result LOreal was able to significantly reduce production costs and the purchasing cost of goods for the company fell to nineteen percent of sales compared to there rivals Wella, who had cost of twenty five percent, (Morais: 2000). Therefore it can be argued that LOreal competitive strategy falls into Porters Differentiation strategy as seen on Appendix 7. This is due to LOreals high research and development costs and acquisitions of companies such as Soft Sheen which involves producing a range of products that meets the specific needs of the consumer segments. Thus by creating uniqueness and developing a prestigious brand image, LOreal is able to charge high prices for their products compared to the competitors. According to Porter (2004), this lowers the sensitivity to price of the brand loyal customers and can also act as a, entry barrier for new firms. It is further argue that, this strategy could generate higher revenue than the low cost strategy, due to the development of high barrier to entry and therefore making it difficult for new businesses to enter. However, the higher price is likely to result in a lower volume of sales and thus one strategy will not necessarily mean high profit than the other. It is argued by Kim et al (2005), the competition based strategy of Porter is not sufficient to sustain high business performance and firms should develop new growth opportunities through value innovation. In order for value innovation to be created for both the company and buyer, the company must discover unused areas of the market and create the new demand. Thereby focus is shifted towards innovation rather than competition. LOreals Organisational Structure It can be identified from Appendix 3 that LOreal has incorporated a matrix organisational structure. According to Bartlett and Ghoshal (1990), matrix structures tend to be complex and combines two or more organisational responsibilities. For example, the CEO of LOreal is placed at the Head office located in France, with the top regional leaders reporting directly to the CEO. The responsibility of the division executives is to manage the brand strategy, global brand sales, profitability and marketing. The Region Managers (i.e. Asia, U.S.A, Africa and Europe) are responsible for the sales in their region and executing sales strategies. The strategies are developed by brand teams based in their respective region; and brand teams work closely with their division executives in order to implement effective marketing strategies within the region. Hence, in order to maintain an effective level of communication, managers of each country often keep close relationship with the general managers of each brand to identify needs of the specific country. In return, the general mangers provide information on marketing strategies for their region and product development ideas, which then requires co-operation with Research Development. Cogmap, (2009) However, Bartlett and Ghoshal (1990) argue a matrix structure can prove to be unmanageable in the international context, since multiple reporting often leads to confusion and creates overlapping responsibilities. As a result distance is created between language, culture and time. LOreal have avoid such problems by keeping a strong central oversight over executives of each division, since it then allows LOreal to identify whether each executive is effectively managing the division and the responsible regional mangers, to ensure there is no redundant work or conflicting interests. Therefore the implementation of the matrix structure has allowed LOreal to save costs, as fewer people are required due to employees sharing information between different projects. In addition, resource sharing saves time and costs, since those employees engaging in different projects often share related information. Hence it has been identified by Appendix 3, that LOreals executives work on more than one project at a time and keep a regular flow of information about the progress of the company, this has made the company stronger since different departments are working together and not against each other. Cultural Issues for LOreal It has been identified that LOreal had experienced number of cultural issues, due to their international strategy to become a global brand. When LOreal had decided to enter the American market through licensee with Cosmair in 1954, the company had faced cultural differences. According to Sharma (2010), compared to the European Market, in the American market LOreal was required to have business relationship with local middlemen rather than national distributors in order to distribute product to salons. This had become significantly difficult for the company, since LOreals presence within the U.S. market was limited, such relationships was hard to acquire. In addition, American salons were also unfamiliar with the quality of the products and disagreed on selling such goods. To resolve the issue, LOreals primary goal was now to increase there global presence and was accomplished by strategic international expansion and by taking the company public in 1963. According to Sharma (2010) LOreals strategy was to sell cosmetics through different channels of distribution; which in turn affected the macro economic levels of sales. The four types of distribution channels from professional salon hair specialists, beauty advisors, medically trained advisors in pharmacies and self service department stores allowed LOreal to develop their international presence and acquire a competitive advantage over competitors. Political Risks However, LOreal had now once faced issues while operating in Europe. After the company had become a publicly traded company in 1963, LOreal was under threat of state control by the French government and feared that the company strategies for international growth would be jeopardised. Hence, LOreal took steps to internationalise the ownership structure, in order to prevent the government control by selling fifty percent of LOreal stock to french personal care manufacturer Gesparal and keeping other half of the company publicly traded (Moodie: 2004). According to Balassa (1985), the reason for the French government to take ownership was due to threat from international companies. Therefore the French political system considered that it could provide security to the French communities trade by subsidising and directing publicly owned companies. Since, LOreal had become publicly traded in 1963 the company was prone to come under state influence. Using Yips model (Appendix 8), it can be identified one of the key globalisation drivers for LOreal to enter the cosmetics market is growth of global and regional channels. This is a key market driver, since it has allowed the company to develop their distribution channels worldwide. By entering the American market and acquiring ready established brands, LOreal was able to access the acquired companys resources. Another market driver can be identified from Appendix 1, which indicates that America has an aging population, therefore demand for LOreals anti-aging products have increased. These products success were a result of the companys extensive investment in research and development. It has been identified that global acquisitions by consumer product companies also acted as a competitive driver. Since, the existence of various global competitors had indicated that the industry is good for globalisation; where global competitors have the cost advantage over local businesses, accordi ng to Bartlett and Ghoshal (1989). One of the key reasons for LOreals globalisation development is due to the lowering of trade and investment policies internationally, where GATT (General Agreement of Tariff and Trade) have made free trade agreements between participating countries. According to Hill (2007), this can also benefit the countries that do not have a large amount of sources to utilise their resources and hence encourage foreign direct investment companies to invest.

T.S. Eliots The Waste Land and Morality :: Eliot Waste Land Morals Essays

T.S. Eliot's The Waste Land and Morality T.S. Eliot and Yulisa Amadu Maddy both address the topics of fear of death and then correlative love of life, but from entirely different points of view. T.S. Eliot wrote during a time when people were questioning relativity, especially moral relativity and it's effect on life after death. Maddy wrote about young boys who were going through that time in a teenager's life when they realize that they will die someday. Thus, teenagers begin to acknowledge death while embarking on their search for love and the meaning of life. During the time period that Eliot wrote "The Waste Land" people were questioning relativity. If time is relative then are not all things relative, including morals? People may have thought that they were living a moral life, but what was that moral life relative to? This lead me to the assumption that people were more fearful of life after death because the had no way to really know how they measured up morally to the standards of God. Eliot used these questions and fears in his poem, "The Waste Land." He displays the feelings of love for life as well as fear of death. Eliot writes of a "dead tree that can give no shelter," and a "dry stone no sound of water." Water symbolizes life and the dry stone implies the lack there of. The tree is dead and thus no shelter from the elements. Eliot continues, "There is shadow under this red rock,/ (Come in under the shadow of this red rock). Shadows imply darkness, death, and sinister dealings . Then Eliot writes, "And I will show you something different from either/ Your shadow at morning striding behind you/ Or your shadow at evening rising to meet you;/ I will show you fear in a handful of dust." These are signs pointing to death. Eliot claims he will show you something different than the shadows you see in the morning and at night. The opposite of having a shadow would be not having a shadow, and if someone, other than Peter Pan, ceases to have a shadow then they obviously have ceased to have an earthly existence. The lack of water, a barren tree, the loss of shadows, and finally what I believe to be a Biblical allusion, "I will show you fear in a handful of dust." There is mention in the Bible about originating from ashes and dust and returning to ashes and dust as well.

Essay --

Isaac Thomas Rett Syndrome Rett syndrome is a progressive neurological disorder that affects almost exclusively in females. The most basic symptoms include decreased speech, cognitive disabilities, severe lack of muscle control, small head size, and unusual hand movements. A woman with a mutation in her MECP2 gene, has a 50% risk with any pregnancy to pass on her X chromosome with the mutation. It is not common for women with Rett syndrome to have children because the severity of the disorder. The mutated gene on the X chromosome that is responsible for causing Rett syndrome is the methyl CpG-binding protein 2, MECP2 gene. The gene makes a protein that controls other genes. When a mutation occurs in the MECP2, the protein it makes does not work properly. This is thought to counteract normal neuron, nerve cell development. The severity of the syndrome in females is related to the type of mutation in the MECP2 gene and the percentage of cells that carry a normal copy of the MECP2 gene. Rett syndrome is believed to affect all ethnic groups and nationalities with an equal frequency of about 1 case for every 10,000 to 15,000 live female births. Rett syndrome is an X-linked dominant gene. This means that the mutation responsible for Rett syndrome affects the gene located on the X chromosome. Females attain two X chromosomes, one from each parent. Males have one X and one Y chromosome. There is no cure for Rett syndrome. Treatment of patients with Rett syndrome focuses on improving the symptoms present. Treatment may include medications that constrain seizures, reduce spasticity, and prevent sleep disturbances. Nutrition is supervised in females with Rett syndrome due to their small build and the constipation related with the... ...romosome they carry cannot compensate for this mutation on their X chromosome. Females with a mutation in the gene that causes Rett Syndrome are able to survive because the presence of the second normal X chromosome partially compensates for the mutation on the other X chromosome. Bibliography 1. "Rett syndrome." Holly A. Ishmael, MS, CGC. and Tish Davidson, A.M. The Gale Encyclopedia of Neurological Disorders, Second Edition. Ed. Brigham Narins. Detroit: Gale, 2012. 2 vols. 2. "Rett syndrome." Holly A. Ishmael, MS, CGC. The Gale Encyclopedia of Genetic Disorders. Ed. Laurie Fundukian. 3rd ed. Detroit: Gale, 2010. 2 vols. 3. "Rett syndrome." Rebecca J. Frey, PhD., Emily Jane. Willingham, PhD., and Laura Jean Cataldo, RN, EdD. The Gale Encyclopedia of Mental Health. Ed. Kristin Key. 3rd ed. Detroit: Gale, 2012. 2 vols. Essay -- Isaac Thomas Rett Syndrome Rett syndrome is a progressive neurological disorder that affects almost exclusively in females. The most basic symptoms include decreased speech, cognitive disabilities, severe lack of muscle control, small head size, and unusual hand movements. A woman with a mutation in her MECP2 gene, has a 50% risk with any pregnancy to pass on her X chromosome with the mutation. It is not common for women with Rett syndrome to have children because the severity of the disorder. The mutated gene on the X chromosome that is responsible for causing Rett syndrome is the methyl CpG-binding protein 2, MECP2 gene. The gene makes a protein that controls other genes. When a mutation occurs in the MECP2, the protein it makes does not work properly. This is thought to counteract normal neuron, nerve cell development. The severity of the syndrome in females is related to the type of mutation in the MECP2 gene and the percentage of cells that carry a normal copy of the MECP2 gene. Rett syndrome is believed to affect all ethnic groups and nationalities with an equal frequency of about 1 case for every 10,000 to 15,000 live female births. Rett syndrome is an X-linked dominant gene. This means that the mutation responsible for Rett syndrome affects the gene located on the X chromosome. Females attain two X chromosomes, one from each parent. Males have one X and one Y chromosome. There is no cure for Rett syndrome. Treatment of patients with Rett syndrome focuses on improving the symptoms present. Treatment may include medications that constrain seizures, reduce spasticity, and prevent sleep disturbances. Nutrition is supervised in females with Rett syndrome due to their small build and the constipation related with the... ...romosome they carry cannot compensate for this mutation on their X chromosome. Females with a mutation in the gene that causes Rett Syndrome are able to survive because the presence of the second normal X chromosome partially compensates for the mutation on the other X chromosome. Bibliography 1. "Rett syndrome." Holly A. Ishmael, MS, CGC. and Tish Davidson, A.M. The Gale Encyclopedia of Neurological Disorders, Second Edition. Ed. Brigham Narins. Detroit: Gale, 2012. 2 vols. 2. "Rett syndrome." Holly A. Ishmael, MS, CGC. The Gale Encyclopedia of Genetic Disorders. Ed. Laurie Fundukian. 3rd ed. Detroit: Gale, 2010. 2 vols. 3. "Rett syndrome." Rebecca J. Frey, PhD., Emily Jane. Willingham, PhD., and Laura Jean Cataldo, RN, EdD. The Gale Encyclopedia of Mental Health. Ed. Kristin Key. 3rd ed. Detroit: Gale, 2012. 2 vols.

Reflection on The Use of Force Essay

The short story †The Use of Force† is a story which is narrated by a character, the doctor. The main character is a normal doctor which appreciates his job and is ready to fulfill his duty; to find out what his patient’s problems are. In the story, he seems to care allot about the child’s health. At one point, he gets mad because all his cooperation with the youngster is getting them nowhere. Anger starts to be felt in the doctor’s cabinet; this is when the patient will have to be forced to get examined by the doctor. The doctor in the story knows how to apprehend patients, he starts out smoothly with the girl, knowing that children usually respond with a good attitude if you are friendly with them. The doctor’s duty is to know exactly what you are sick of, which the girl, for unknown reasons didn’t want to be examined closely. She refused to admit she had a sore throat. The fact that her ignorance could kill her made the doctor insane, he then became more insistent about using physical force to help her out. Even though the doctor’s effort didn’t work, he knew that if he had the full support of her parents, they finally would come to an end with the problem. The doctor enjoyed the feeling of insane anger towards the child; it made him go through the hard struggle of opening the child’s mouth. The anger expressed by him was not directly linked to the girl, but to the situation, he did want to help out the ignorant, suffering girl from the sickness she was hiding. The two characters which bring an essence to the main goal of the story are the doctor and the child. The Doctor then finds pleasure in using force in diagnosing the unpleasant child, which happens to cause her pain. The child therefore, still is fighting back and will not abandon her cause. The child creates the turmoil without being conscious, she is being a painful patient and she is not able to tell whether what she does is good or wrong. It shows us that she is probably a spoiled and rebellious girl, who easily stands out when things aren’t what she wants. The doctor is also part of the undesired situation, he is a key element in the turmoil. He enjoys using force upon  the child to help her out, he wants to prove her she is wrong to act as such. The doctor feels no remorse’s of the actions he took for the child, all he seeks for is satisfaction by proving himself he is helping the young child. The use of force was needed to resolve the situation. It was necessary to have a proper diagnosis of her health to save her. What really came down to the use of force was that the doctor was determined to find out what troubled the parents of the child. It was also that she made him so angry about being stubborn and so hard to handle that he became more and more persistent. To conclude, both of the characters want to win a fight, with misconduct. The doctor is faced with a problem of self discipline and the young girl has a lack of obedience.

How Can Public Diplomacy Complement “Hard Power” Tactics in International Affairs?

Hard power is a term used to describe power that is acquired from the use of military and/or economic force to influence the behaviour or interests of other political entities. As the name might imply, this type of political power is often aggressive, and is most effective when imposed by one political body upon another of lesser military and/or economic power. What it boils down to is: Do what we want. If you don't, we will inflict undesirable damage on your person, citizenry, economy, security forces, crops, well water, et cetera. Hard power is mostly placed in the International Relations field of Realism, where military power is seen as the expression of a state’s strength in the international community. While the existence of hard power has a long history, the term arose when Joseph Nye coined ‘soft power' as a fresh and different form of power in a State's foreign policy. Nye defined soft power as â€Å"the ability to get what you want through attraction rather than through coercion. † He also said that soft power â€Å"could be developed through relations with allies, economic assistance, and cultural exchanges. He argued that this would result in â€Å"a more favourable public opinion and credibility abroad. † By engaging both forms of power, hard and soft, one is then employing ‘smart power’. Another term defined by Joseph Nye, it was endorsed by Hilary Clinton: â€Å"We must use what has been called smart power — the full range of tools at our disposal â €” diplomatic, economic, military, political, legal, and cultural — picking the right tool, or combination of tools, for each situation. With smart power, diplomacy will be the vanguard of foreign policy. Ideas matter, and a country’s ability to promote ideals to citizens of other nations and societies, known as public diplomacy (PD), can work wonders to advance the national interest. By taking a look at case studies, we will examine whether PD can complement hard power tactics and thus we will see if ‘smart power’ is really viable in practice. The U. S strategy of hard power and public diplomacy in the Cold War During the Cold War, the world was divided in two, as the two super-powers attempted to gain support from neutral parties while offsetting the actions of their opponent. The United States and Russia were more or less equally matched in military and political strength and this resulted in a stalemate. With hard power abilities alone proving ineffective at turning the tide in any direction it meant that another means of demonstrating global dominance would be required. The basic strategy of the US during the Cold War was containment using military, economic, and diplomatic strategies to stop the spread of Communism, boost America’s security and influence abroad, and avert a â€Å"domino effect†. The concept of containment was proposed by diplomat George Kennan in the notorious Long Telegram . Kennan argued that the only way to defeat the spread of Communism was to suffocate it. Containment had two major policies associated with it, the Truman Doctrine and the Marshall Plan and was a reaction to a string of moves by the Soviet Union to expand Communist influence in Eastern Europe, China, and Korea. It represented a middle-ground position between appeasement and rollback. The Truman Doctrine was a robust plan that that pledged military support to the nations struggling against communist pressures. It was announced By President Truman in his 1947 address to congress after the United Kingdom informed the United States that it no longer had the capabilities to aid Greece and Turkey in their struggle against Soviet tensions. In the address he declared that the United States would â€Å"support free peoples who are resisting attempted subjugation by armed minorities or by outside pressures. † The Truman Doctrine displayed the U. S objective to respond to any further expansion with military force—the hard power element of containment. The Truman Doctrine was the justification for considerable injections of American money into European economic recovery to counteract the development of social and political unrest. This ambitious aid plan was called the Marshall Plan after the secretary of state at the time. General Marshall proposed the plan with two intentions: to assist in the rebuilding of Europe and to win the â€Å"hearts and minds† of the citizens most vulnerable to the reach of communism. The act of benevolence was accepted by the United States’ European allies after a phase of negotiations, but was discarded by the Soviets and other members of the Eastern Bloc. The Marshall Plan represented a significant early application of U. S. soft power and the vital non-military aspect of US policies of containment. Containment is an excellent example of a successful balance of hard and soft power. The policies they implemented in this process served to strengthen relations with â€Å"at-risk† countries in Europe while at the same time sending a strong message to the Soviet Union th at the United States would react strongly to any further Soviet expansion. In fact, containment was so successful, that many experts consider it the leading cause of the Soviet collapse. Another prime example of this PD was the cultural exchanges which saw tens of thousands of Soviet students go to America to study. These exchanges enabled many Soviet citizens, especially in the upper and middle reaches of society, to see the United States with their own eyes. The students would then go back to the USSR and some even occupied roles of influence and played important roles in the peaceful demise of the Soviet Union As I mentioned earlier, Public Diplomacy serves to make one’s country and ideals more attractive to citizens of other countries. One way that the U. S achieved this during the Cold War was by setting up organizations such as Radio Free Europe/Radio Lib ¬erty (RFE/RL), the Voice of America (VOA), and the United States Information Agency (USIA) which communi ¬cated the ideals of democracy, individual rights, and the free market. U. S. officials distin ¬guished America's truthful approach from the lies and deceptions of classic Nazi and Soviet propa ¬ganda and therefore the term â€Å"public diplomacy† came into general use by the 1970s to reflect this critical dif ¬ference. In fact it was noted by Edward R. Murrow, then director of the USIA, that â€Å"truth is the best propaganda and lies are the worst. † Nye remarks that Pop culture also featured largely in the U. S arsenal as it transmits widely â€Å"American values that are open, mobile, individualistic, anti-establishment, pluralistic, populist, and free. † â€Å"Long before the Berlin Wall fell in 1989; it had been pierced by television and movies. The hammers and bulldozers would not have worked without the years-long transmission of images of the popular culture of the West before it fell. In the end, the promotion of these values contributed mightily to the nearly bloodless dissolution of the Soviet Empire. China’s public diplomacy in Africa In recent years, China has looked to complement its long-established employment of hard power with soft power, and as a consequence, the Chinese government has devoted a lot of consideration to public diplomacy. In the past, Chinese g overnments have demonstrated a limited understanding of public diplomacy, viewing it either as external propaganda or a form of internal public affairs, but this has not prevented China from becoming a killed public diplomacy player. Public diplomacy and hard power are not only used in situations of war or tension between countries. One can look at Chinese relationship with Africa for a prime example of public diplomacy employed to strengthen economic relations. Africa has resources that China needs and so China views other countries, mainly this in the West, as a direct competitor for African resources. That is why they needed to establish such strong relationship with Africa. A strategy to block out competitors would require a deep partnership of trust (gained with PD), or coercion (Hard Power). The Chinese opted for the trust route as they believed it would be more cost-effective in the long run to establish a trust and understanding. Relationships begin with dialogues. The goal is to build trust. Trust cannot be manufactured, it has to be earned. China-African relations have steadily deepened and strengthened since the founding of â€Å"new China† in 1949. Developing from the ideologically-driven interactions during the Cold War, today’s China-Africa relations combine pragmatic economic and political means to achieve China’s objective of establishing a world order that is peaceful and favourable to continued economic growth and stability at home. In the 1960s and 1970s, China supported liberation movements in several African countries, gave aid to socialist nations to build stadiums, hospitals, railroads and other infrastructure, and cemented relations through a steady stream of expert engineers, teachers, and doctors. Today, Chinese officials travel to Africa accompanied by bankers and businesspeople, promoting political and economic commerce that develops China-Africa ties in a sustainable fashion. While trade and diplomacy are driven by China’s newfound economic strength and subsequent demand for raw materials, China continues to support longstanding programs that deliver aid to impoverished African citizens, such as sending teams of doctors and providing medicines. There are a number of reasons why China makes for such an appealing partner to many African countries. China’s attitude towards bilateral relations and economic development offers a different alternative to the political and economic reforms pushed forward by the â€Å"West†. China has adopted a firm stance of respect for other nations’ sovereignty and persistently refuses to condemn or involve itself in the internal affairs of African nations. This attitude has earned it the respect of those leaders and elite individuals and groups that profited from poor governance and crooked political systems and so they are not so keen on applying tedious and costly economic reforms insisted on by the West. In order to demonstrate to Africa how sincere and beneficial their friendship with China is, Beijing drafted a policy on Africa. China reportedly gets over a quarter of its oil from Africa , so it is not surprising it's interested in building up and maintaining relations on the continent. At the start of the millennium, Beijing established the China-Africa Cooperation Forum (CACF) to encourage trade and investment with 44 African countries. In 2003, Prime Minister Wen visited several oil-producing African states accompanied by Chinese oil executives, and President Hu toured Algeria, Egypt, and Gabon. China has been collaborating with governments in the Gulf of Guinea, from Angola to Nigeria, as well as with the Central African Republic, Chad, Congo, Libya, Niger, and Sudan. In mid-January 2006, China issued an African foreign policy paper. China has laid out the strategy for all to see and it is divided into six parts: 1. Africa's Position and Role 2. China's Relations with Africa 3. China's African Policy 4. Enhancing All-round Cooperation between China and Africa 5. Forum on China-Africa Cooperation and Its Follow-up Actions 6. China's Relations with African Regional Organizations The document is made as accessible as possible on the internet. It is written in simple English which means that it is easy to read even for those who do not have an exceptionally strong command of the language. This document is a perfect demonstration of public diplomacy. The Chinese are doing a superb job in the region. China's relationship with the public goes further than building prestige buildings for the public and the public themselves get to choose whether they want a sports stadium or a government building. In addition, television in the area is becoming more and more English language transitions from China. By backing up its economic interests with so much soft power, China has been put on a moral high-ground when compared to other global players. EU integration and public diplomacy One of the most successful initiatives to embody the principles of effective public diplomacy was the establishment of the European Coal and Steel Community in the 1950’s which has now evolved into the European Union. European integration is the process of mainly political, legal, social and economic integration of European states, which these days is primarily achieved through the European Union and the Council of Europe. Attempts at European integration emerged originally after the devastation of the Second World War and the desire of European countries to integrate so much so as to eliminate the possibility of another European war. The main intention behind integrating economically and politically is that the smaller European countries have more influence in international matters such as trade and world politics. A ‘kind of United States of Europe’ was called for by Winston Churchill and in 1950 the German and French politicians, Robert Schuman and Jean Monnet, proposed a common market for coal and steel for those countries willing to delegate control of these sectors of their economies to an independent authority. In 1951 the Treaty of Paris was signed by the leaders of six European countries; Belgium, the Netherlands, Luxembourg, France and West Germany. This treaty founded the European Coal and Steel Community (ECSC) creating a common market in which the industries that were crucial for war were controlled thus preventing the unilateral rearmament of any of its member states, particularly Germany. The ECSC enjoyed economic and political success which spurred the six member states to sign the Treaty of Rome in 1957 and establish the European Economic Community (EEC), which was transformed into the European Community from 1967 in the Merger Treaty. In 1993 the Maastricht Treaty transformed the ECSC into the European Union and European integration became less and less about the ‘negative’ removal of barriers, and more and more about ‘positive’, active harmonization. The EU has steadily been evolving as a diplomatic power in its own right. To demonstrate this, we need to look at the broad sweep of the development of an EU diplomatic corps over time; where it came from, how few of them there originally were, how little they did, and how these details compare with trends today. The European Union practices public diplomacy through a multilayered framework of policies and programs, relying both on its Representations in member-states, as well as its Delegations abroad – it now has diplomatic delegations in over 150 countries, employing over 5,000 members of staff. With its internal communication strategy the Union aims to engage EU-citizens more closely in its political life and to create a sense of common identity. Its communication strategy for enlargement, on the other hand, is designed to explain the goals and responsibilities of the European project to countries that aspire to become member states as well as to promote the benefits of enlargement to Euro-sceptics inside the EU. The European Neighbourhood Policy provides another layer of regional integration and governance and is directed towards the EU's immediate neighbours by land and sea, primarily developing countries, who seek one day to become either member states of the European Union itself, or more closely integrated with the economy of the European Union. Finally, through its network of Delegations abroad, the EU aims to assert itself on the international stage and regulates its relations with â€Å"third† countries. Although basically aimed at developing a public diplomacy capability, most of the outreach activities of the EU are not officially referred to as â€Å"public diplomacy†, but are described as information and communication campaigns, or education and cultural exchange programs. These efforts are intended not only to inform and explain the workings of EU institutions but also to socialize into the norms and values of the Union. The European Commission is the institution responsible for conducting the Union's diplomacy and public diplomacy efforts. While other EU bodies have also initiated public diplomacy programs, the Commission is the one providing the executive action. Since the creation of the ECSC in 1950 member states have achieved great success in integrating socially, economically and politically between themselves however there are still many difficulties to be overcome and the process of integration will never be complete. Much progress has been made to create an integrated EU diplomatic service and this will continue to be utilized alongside hard power economic and political policies to develop the EU as strong and coherent body of states. Conclusion As we have seen in these case studies, when hard power is coupled with soft power, especially public diplomacy, it creates a most effective product – more effective than the sum of its parts. The European Union for example has been seen as a civilian power. It has no army even though this is one of the areas where unity would bring an obvious increase in efficiency and influence. It relies on law, on negotiation, on multilateral organisation. Its relationships are often in the form of â€Å"contractual agreements†, itself a revealing phrase. It seems a model of soft power, as America is of hard power. Even China, a country based on hard power, has realised the effectiveness of adding a strong public diplomacy to its repertoire. Realists have a preference for hard power. Otto von Bismarck is famous for the remark that â€Å"this policy cannot succeed through speeches †¦and songs; it can be carried out only through blood and iron†. In a twist of irony however Bismarck’s blood and iron was not the solution to the German question. By 1945 Germany had had enough of both: they had undermined Bismarck’s achievement of unification and had led to the ruin of Germany. In today’s world it is more important than ever to be able to effectively combine hard and soft power to form smart power. Even one of the greatest military men of all time, realised the importance complementing hard power with soft when he famously stated that: â€Å"There are but two powers in the world, the sword and the mind. In the long run the sword is always beaten by the mind. † – Napoleon Bonaparte Bibliography Bonaparte, Napoleon (1769-1821), ‘Napoleon Bonaparte Quotes’, http://www. military-quotes. com/Napoleon. htm Carnes Lord – Helle C. Dale, Public Diplomacy and the Cold War: Lessons Learned, in the Heritage Foundation (online) 18 September 2007 http://www. heritage. rg/Research/nationalSecurity/bg2070. cfm [accessed 28 January 2010] Drew Thompson, China’s Soft Power in Africa: from the â€Å"Beijing consensus† to health diplomacy, China Brief: Volume 5, Issue 21 (October 13, 2005) Joseph S. Nye Jr, Soft Power: A Means to Success in World Politics. Public Affairs, New York. 2004. Joseph S. Nye Jr, Soft Power, Hard Power and Leadership. Seminar , 27 October 06. http://www. hks. harvard. edu/netgov/files/talks/docs/11_06_06_seminar_Nye_HP_SP_Leadership. pdf Lee Rotherham, EU Diplomats, (online) in TaxpayersAlliance. com http://www. taxpayersalliance. om/EUDiplomats. pdf Matt Armstrong, Practicing Effective Public Diplomacy in Africa (or elsewhere). Blog – MountainRunner. US (online). February 8 2006 http://mountainrunner. us/2006/02/practicing_effe. html [accessed 28 January 2010] Robert Cooper, Hard power, Soft power and the Goals of Diplomacy, in David Held/Mathias Koenig-Archibugi, American Power in the 21st Century, 2004, pp. 167-180 Rory D Huff Jr, U. S. Applications of Hard and Soft Power (online) http://www. personal. psu. edu/cpl2/blogs/powerforce/Huff%20on%20Hard%20and%20Soft%20Power. pdf [accessed 28 January 2010]