Mattel Case

#07 – Teaching Case Study Hazardous Toy Recalls at Mattel, Inc. Key words: Chinese manufacturing, outsourcing, product recalls, global supply chain risk Type of submission: teaching case study Hazardous Toy Recalls at Mattel, Inc. [? ] Abstract In 2006 and 2007 Mattel, Inc. was faced with massive recalls of Chinese-made toys due to potentially dangerous levels of lead in various toy model surface paints and small magnets in toys which could fall off and be swallowed.This case describes the events leading up to the recalls, the response by Mattel, the legal, health, reputation and financial implications of the recalls, and the impacts of the recalls on Mattel’s global supply chain. Readers are asked to assess the situation and to decide what should have been done differently, if anything. The case is appropriate for undergraduate and graduate business students analyzing various purchasing, risk, and supply chain design issues. The 2006/2007 Mattel Toy RecallsIn some resp ects, the period from March 2006 to October 2007 was a very troublesome time for Mattel and their Chinese toy suppliers. On a number of occasions during this period, Mattel recalled a total of about 14 million Chinese-made toys in the U. S. and Canada for the same two serious problems. Millions more were recalled in other foreign markets. These two problems were indeed significant; not only for Mattel, but for their distributors, retailers, Chinese suppliers and finally the families around the world buying their toys.Over 2 million of the recalled toys had either been sprayed with lead-tainted paint or contained potentially hazardous levels of lead within the materials, while the remaining toys contained small magnets which could come off and be swallowed. Table I summarizes these recalls. Table IMattel’s Chinese-Made Toy Recalls in the US and Canada, 2006 – 2007* |Date |Toy and Problem Description |No.Units Recalled | |03/30/2006 |American Girl jewelry containing high levels of lead | 180,000 | |11/21/2006 |Polly Pocket toys with small loose magnets | 2,400,000 | |08/02/2007 |Various Fisher Price toys with lead in surface paint | 1,000,000 | |08/14/2007 |Batman, One Piece, Barbie, Tanner, Doggie Day Care, and Polly Pocket toy | 9,350,000 | | |sets with small loose magnets | | |08/14/2007 |Sarge toy cars with lead in surface paint | 250,000 | |09/04/2007 |Geo Trax, Barbie, and Fisher-Price Bongo Band toys with lead in surface | 750,000 | | |paint | | |10/25/2007 |Fisher Price Go Diego Go toy with lead in surface paint | 40,000 | | Total | 13,970,000 | *Source – U. S. Consumer Product Safety Commission, www. cpsc. gov On March 30, 2006 approximately 180,000 of Mattel’s American Girl jewelry pieces in the U. S. were recalled because the Chinese-made jewelry contained high levels of lead. On November 21, 2006, following 170 reports of loose magnets on Polly PocketTM play sets, Mattel recalled over 2. 4 million Polly Pocket play sets in the U. S. and Canada and another 2 million worldwide.In at least three of the cases, children who had swallowed magnets suffered serious intestinal perforations requiring surgery and hospitalization. Then nine months later on August 2, 2007, Mattel recalled almost 1 million Fisher-Price toys for using paint exceeding the lead content limit set by the U. S. Consumer Product Safety Commission (CPSC). Two weeks later, the CPSC announced five separate recalls of hundreds of thousands of Mattel die cast toy cars for potentially hazardous levels of lead paint and over 9 million play sets in the U. S. and Canada, following hundreds of reports of small magnets falling out of the toys. In early September, Mattel announced another major recall—over 700,000 units of 11 different toy models for having paint containing excess lead.Finally, on October 25, 2007, another recall was announced by the CPSC for yet more Chinese-manufactured toys containing paint with lead. In late August 2007, Mattel announced that some of the lead-tainted toys had been painted by a third-party subcontractor working for one of Mattel’s primary Asian toy suppliers, Hong Kong-based Early Light Industrial Co. , a toy maker for many of the world’s biggest toy companies. Hong Li Da, the Chinese subcontractor used by Early Light, was supposed to use Mattel-approved paint, however it instead used less costly paint from an unapproved supplier. Today, Mattel continues to use the Early Light Co. , a trusted supplier of theirs for more than 15 years.Another Chinese subcontractor, Lee Der Industrial Co. , also used an unauthorized paint supplier when making many of the toys included in the August 2 recall. [? ] Mattel typically performs monthly audits of manufacturers’ toys, which sometimes includes testing random units and other times involves reviewing manufacturers’ testing records. Mr. Jim Walter, Mattel’s senior vice president of worldwide quality assurance exp lained, â€Å"They didn’t perform the testing they should have, and the audit we performed didn’t catch it. †[? ] Mattel’s Response In late August 2007, Mattel CEO Robert Eckert filmed a video apology to parents which was placed on the company’s website and on Yahoo’s website. I can’t change what has happened in the past, but I can change how we work in the future,† he said, adding that he had four children of his own. Mattel also pledged to increase the frequency of its paint inspections, testing every batch delivered to every supplier. The firm also purchased full-page ads in the New York Times and Wall Street Journal. [? ] Following the third quarter 2007 recalls, Mattel slowed down the shipments coming out of Asia to conduct product testing and safety reviews. Similarly, Mattel’s shipments to global markets were curtailed while various regulatory authorities reviewed Mattel’s safety procedures. Ultimately, Matt el was able to prevent more than two-thirds of the recalled toys from reaching consumers by contacting distribution centers and retailers. [? Most of the export/import issues were resolved by the end of 2007. Today, Mattel’s first-tier suppliers must conduct quality tests on all incoming materials as well as finished toys made by subcontractors. Also as a result of the recalls, Mattel created a Corporate Responsibility organization, which has accountability internally and externally for adherence to company safety and compliance procedures. [? ] On September 5, 2007, Mattel representatives told an American congressional committee that the problem with toys containing unsafe magnets was the result of a flawed toy design, and not due to poor adherence to manufacturing requirements in China.According to Chairman and CEO Robert Ekert, more than 50,000 hours had been spent investigating the issues surrounding the toy recalls. â€Å"We apologise again to everyone affected and prom ise that we will continue to focus on ensuring the safety and quality of our toys,† he said. [? ] Finally, on September 21 in a meeting in Beijing with Mr. Li Changjiang, the chief Chinese quality official along with a group of reporters, Mr. Thomas Debrowski, a senior Mattel executive, offered an apology to the Chinese people—â€Å"Mattel takes full responsibility for these recalls and apologizes personally to you, the Chinese people, and all of our customers who received the toys†. [? Li also told reporters that the Chinese government shut down operations and revoked the business license of Lee Der Industrial, one of the subcontractors producing the defective Mattel toys (a co-owner of Lee Der Industrial committed suicide shortly after the August recall announcement). [? ] With regard to the unsafe magnet problem, Mattel made several manufacturing changes to better retain magnets in their toys, including longer cure times for adhesives, the use of additional ad hesive, and the use of injection molding to better encapsulate magnets inside toys. The Chinese Manufacturing and Regulatory Environments Companies operating in China are subjected to very few regulations, and have little legal recourse.Foreign firms operating in China try to cover themselves by securing guarantees from their Chinese suppliers that they will follow specific procedures, but they are almost impossible to enforce. In September 2007 Mr. Yan Jiangying of the Chinese State Food and Drug Association admitted that â€Å"†¦supervisory foundations are still very weak†. The oversight of food safety for instance, is split between five ministries resulting in unclear responsibilities. There also tends to be no history of regulatory compliance for Chinese businesses, causing many safety and quality shortcuts to be taken when suppliers are pressured by their customers to reduce prices. With regards to lead paint use, China has laws banning lead paint from consumer prod ucts, but lax regulatory enforcement means these laws are routinely ignored.In a test conducted by the University of Cincinnati from 2004-2007 for example, 38 paint samples from China representing 11 brands were tested and more than 25 percent were found to contain lead levels exceeding the U. S. safe limit of 0. 06 percent. McDonald’s, one of the world’s largest toy buyers, says the problem of lead paint in China is so widespread that their company must monitor paint quality all the way back to the original paint suppliers. Their toy makers must agree to use only McDonald’s approved paint. [? ] Ironically, Chinese cultural norms are often at odds with the way companies are managed, as described earlier with regards to the suicide of Lee Der Industrial’s co-owner.For a number of years, Mattel has used the International Center for Corporate Accountability (ICCA), a non-profit research organization, to conduct audits of its company-managed and third-party C hinese manufacturers to insure compliance with Mattel’s Global Manufacturing Principles (GMP). Mattel’s GMP is shown in Table II. Chinese plant managers are required to complete compliance reports prior to actual field audits. Audits consist of the firm’s accounting practices, confidential one-on-one interviews with employees, an examination of the plant’s policies, procedures and practices with regard to environment, health and safety issues, and inspections of the general maintenance of the manufacturing facilities, storage, treatment and disposal of hazardous waste materials, hygiene issues, and dormitories and recreational facilities.The ICCA provides the audit reports to Mattel, whereby corrective actions are determined in response to the findings. [? ] Mattel’s Ethical and Legal Considerations The Consumer Product Safety Commission (CPSC) can exclude from the U. S. market, products failing to comply with applicable regulations or that otherwi se create a substantial risk of injury, including articles containing excessive amounts of hazardous substances. The CPSC may also require the recall, repurchase, replacement, or repair of articles. [? ] Additionally, U. S. Customs & Border Protection (CBP) ensures that goods entering the U. S. are safe for consumers. The CBP has authority detain and exclude any products based on instructions from the CPSC.On August 20, 2007, a class-action lawsuit was filed in Los Angeles County Superior Court against Mattel with regards to the toys with excessive lead paint. This lawsuit sought to have Mattel establish a fund so that parents could be reimbursed for testing their children for lead poisoning (the cost to test for lead poisoning is about $50 per person). A second class-action lawsuit was filed against Mattel on September 27, 2007 in California seeking damages for injuries suffered from swallowing magnets improperly attached to Mattel toy sets. On September 4, 2007, the CPSC began inv estigating whether Mattel knowingly withheld information regarding any safety risks posed by the millions of toys recalled in August.Mattel could be substantially fined if they are found in violation of the Consumer Product Safety Act of 1972, which stipulates that companies must inform the CPSC within 24 hours when they obtain product defect information which could create a health hazard. [? ] The Chinese Toy Industry Today By the end of 2007, the Chinese toy industry was struggling. In Foshan, a major Chinese toy manufacturing hub in Guangdong province, some companies were tightening standards and increasing testing to reassure Western buyers. Others were closing down or looking for less regulated markets. â€Å"It’s very difficult to do business now,† says Ms. Deng Xiling, sales manager at a factory making plastic components for toys.Her company closed its painted-toy division following the Mattel toy recalls and laid-off almost one-third of its workforce, because t hey couldn’t afford the types of product testing Western buyers started requiring. Table IIMattel’s Global Manufacturing Principles[? ] Mattel’s Global Manufacturing Principles (GMP) apply to all parties that manufacture, assemble, license or distribute any product or package bearing any of the Mattel logos. GMP provides guidance and minimum standards for all manufacturing plants, assembly operations and distribution centers that manufacture or distribute Mattel products. GMP requires safe and fair treatment of employees and that facilities protect the environment while respecting the cultural, ethnic and philosophical differences of the countries where Mattel operates.GMP also requires internal and periodic independent monitoring of our performance and our partners performance to the standards. Mattel is committed to executing GMP in all areas of its business and will only engage business partners who share our commitment to GMP. Mattel expects all its business partners to adhere to GMP, and will assist them in meeting GMP requirements. However, Mattel is prepared to end partnerships with those who do not comply. Mattel and its partners will operate their facilities in compliance with applicable laws and regulations. Mattel has defined the following overarching principles to which all facilities and partners are required to comply.These principles are dynamic and evolving to continually improve our efforts to ensure on-going protection of employees and the environment. In addition, Mattel has developed a comprehensive and detailed set of underlying procedures and standards that enable us to apply and administer our GMP in the countries where we operate. The procedures and standards are updated and refined on an ongoing basis. 1. Management Systems — Facilities must have systems in place to address labor, social, environmental, health and safety issues. 2. Wages and Working Hours — Employees must be paid for all hours worked. Wages for regular and overtime work must be compensated at the legally mandated rates. Wages must be paid in legal tender and at least monthly.Working hours must be in compliance with country and Mattel requirements. Regular and overtime working hours must be documented, verifiable and accurately reflect all hours worked by employees. Overtime work must be voluntary. Employees must be provided with rest days in compliance with country and Mattel Requirements. Payroll deductions must comply with applicable country and Mattel requirements. 3. Age Requirements — All employees must meet the minimum age for employment as specified by country and Mattel requirements. 4. Forced Labor – Employees must be employed of their own free will. Forced or prison labor must not be used to manufacture, assemble or distribute any Mattel products. 5.Discrimination – The facility must have policies on hiring, promotion, employee rights and disciplinary practices that address discrim ination. 6. Freedom of Expression and Association — The facility must recognize all employees’ rights to choose to engage in, or refrain from, lawful union activity and lawful collective bargaining through representatives selected according to applicable law. Management must create formal channels to encourage communications among all levels of management and employees on issues that impact their working and living conditions. 7. Living Conditions — Dormitories must be separated from production and warehouse buildings.Dormitories and canteens must be safe, sanitary and meet the basic needs of employees. 8. Workplace Safety — The facility must have programs in place to address health and safety issues that exist in the workplace. 9. Health — First aid and medical treatment must be available to all employees. Monitoring programs must be in place to ensure employees are not exposed to harmful working conditions. 10. Emergency Planning — The fac ility must have programs and systems in place for dealing with emergencies such as fires, spills and natural disasters. Emergency exit doors must be kept unlocked at all times when the building is occupied. Emergency exits must be clearly marked and free of obstructions. 11.Environmental Protection — Facilities must have environmental programs in place to minimize their impact on the environment. Discussion Questions 1. Was Mattel’s response to the toy recalls appropriate? Why or why not? How could the company have responded differently? 2. What should Mattel’s responsibility be to their Chinese supplier-partners? 3. Read Mattel’s Global Manufacturing Principles (GMP) shown in Table II. Should anything else be added to their GMP? 4. What are the ethical, legal and reputation issues that need to be addressed by Mattel? Was Mattel acting correctly to publicly apologize and take responsibility for the design errors and lack of oversight? 1] This case was pre pared solely to provide material for student discussion and does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other information to protect confidentiality. [i] Zamiska, N. and N. Casey, â€Å"Toy Makers Face Dilemma Over Supplier,† Wall Street Journal, August 17, 2007, p. A10. [ii] Spencer, J. and N. Casey, â€Å"Toy Recall Shows Challenge China Poses to Partners,† Wall Street Journal, August 3, 2007, p. A1. [iii] Casey, N. and N. Zamiska, â€Å"Mattel Does Damage Control After New Recall,† Wall Street Journal, August 15, 2007, p. B1. [iv] Schuman, J. , â€Å"The Morning Brief: Lead Paint + Elmo = Bad News for China,† Wall Street Journal Online, August 3, 2007. [v] 2007 Mattel, Inc. Annual Report. [vi] Steverman, B. â€Å"Mattel: More Tribulations in Toyland,† Business Week Online, September 6, 2007, p. 12. [vii] â€Å"Business: Plenty of Blame to Go Ar ound; Chinese Manufacturing,† The Economist, V. 382, No. 8548, 2007, pp. 78. [viii] Lindner, M. , â€Å"Mattel Takes Its Lumps for toxic Toys,† Forbes. com, September 21, 2007. [ix] Spencer, J. and N. Casey. [x] 2007 Mattel, Inc. website www. mattel. com/about us/corporate responsibility. [xi] 2007 Mattel, Inc. Annual Report. [xii] Luk, S. and E. Wong, â€Å"Risks Faced by China-based Toy Manufacturers,† China Law & Practice, November 2007, p. 1. [xiii] 2007 Mattel, Inc. website www. mattel. com/about us/corporate responsibility.

Negotiated Order

: â€Å"The Negotiated Order of organizational Reliability. †| | Watson (2008), â€Å"Organizational rules and hierarchies play a part of in the patterning of life in organizations but the overall organizational order is one that emerges out of the process whereby different groups make use of rules, procedures and information in the day- to-day negotiations that occur between them about what is about to happen in any given situation at any particular time. Paul Schulman, in his writings on the Diablo Canyon nuclear power plant unfolded the different aspects of management step by step showing how organization rules, hierarchies and cultures affect the efficacy of the plant. At the beginning of the article ‘The negotiated order of organizational reliability’, Schulman (1993) delves into the realm of both the worker and manager by introducing and further conceptualizing the idea of â€Å"slack†. He expounds the link of this concept, of slack by breaking it do wn into two varieties.Firstly â€Å"resource slack, in time money, personnel†¦can be viewed negatively as a nonproductive inefficiency in the organization, a suboptimal allocation of available means to desired ends. † This concept outlined inherently speaks to the idea of Taylor’s ‘systematic soldiering’, where Taylor explains this notion as â€Å" employee’s deliberate attempt to restrict output and still get maximum reward without tempting management to come back and tighten the rate. † The second aspect of slack zeroed in on is that of control slack.Despite the negative connotation of the word slack in essence from an industrial sociology standpoint can be viewed positively as a way to move away from a scientific management approach which helps to break down a centralized bureaucratic authority. Shulman’s aim on the paper being discussed is generally focused on the idea of organization function and efficacy and reliability from workers. One such way of doing such was by the work environment, the article outlined a quite detailed description of the surroundings of the plant; the Diablo Canyon nuclear plant is located on acres of beautiful farm land with beef cattle and crops on the way.Parker in his book Sociology of Industry (2005), noted from the Hawthorne studies conducted that environmental factors played a key role on motivating workers behavior. Industrial sociology would pinpoint the strategic effort places on environment to be all part of management’s way of motivating or just keeping workers happy. The author highlights a clear division of labor as well as support groups, separate departments to handle each problem example Safety and Emergency Services department as well as Safety Review groups, fire Marshalls, hygienists.This inherently shows the rigid bureaucratic structure eminent at the firm with each specific group having a designed task to take care of. Workers jobs are monitored via quality assurance who reports to the vice president of utility. He shows that the firm as well maintains a level of compliance when it comes to specific standards. Most importantly when it comes to employee interaction and say on the job, what separates this firm from a scientific management style is the fact that they have weekly meeting which inherently allow employees to be a part of the firm as well as support group for workers.Schulman highlights in his research that despite the high levels of specialization and organization there is pressure to â€Å"formalize† tasks and as a result there are some â€Å"established norms for operations—not formally but informally. † These norms the writer ties into the title of the article negotiated order which he highlighted there is at the firm however it was difficult to actually point out except with the case of improper communication between the day and night supervisor who did not tell each other about changes that were made.In all the case of Diablo canyon managers aim to diminish slack and gain maximum safe levels of performance, they have implemented formalized standardize hierarchical structures which help inherently promote cultures desirable for the organization as they saw that were arrogant were not seen as an ideal worker as well the internal polity had a system of somewhat overlapping powers thus decreasing centrality. Analyzing this piece from an industrial sociology standpoint brings up many issues.Firstly Schulman fails to show how really employees are motivated at Diablo Canyon. Despite all the programmes and meetings put in place there is no clear indicator of how the employee is in fact motivated. The author centralizes on management and management functions, and measures they put in place. His main issue of concern as mentioned prior was efficiency on the light of the manager’s perspective of the firm. A lot of the paper went on to â€Å"sort out units†, separate different part of the organization and highlight their role.For example there is a â€Å" Plant Staff review committee that meets weekly to approve procedural modification and design changes, as well as a Technical review group† , showing that management takes high level of importance in quality and control. With all these groups especially support groups and safety groups it acts as a motivator to workers. Thus here we can say that there is even though not mentioned by the author some sort of motivation taking place by implementation of these groups.Looking at the Pychologistic side in management, we see that Maslow (1954) believed that scientific management should be revamped and remodeled to and â€Å"centered on releasing people’s potential at various levels† Maslow designed and put forth a model he called the â€Å"Hierarchy of needs† in which he outlines various levels of motivation for workers. At the Diablo canyon we see that workers are motivate d on the second as well as some evidence of third level, which are safety needs and love needs respectively.Especially safety needs with all the inspection units, the Onsite Planning Engineering Group for example â€Å"engineered to verify activities are performed properly and looks over general safety of the plant as well as looks over equipment modification. † Worth mention is the comparison the author makes to a study entitle â€Å"The Hospital and it’s Negotiated order† (Strauss, Schatzman, Ehrlic, Bucher and Sabsin (1963) described what the write states as a â€Å"complex pattern of reciprocal yet unstated agreements† between hospital staff.Schulman clearly highlights as part of his issue that the aforementioned phenomenon of negotiated order which was brought forth by the Interactionist School in industrial sociology can in fact be observed within the plant. â€Å" not only are a range of informal interorganizational agreements observable, their ne gotiation and continual renewal are recognized and embraced formally in the organization†. Here one clearly understands that yes there is an existence of negotiated order however he fails to impact on its existence on the plant here at large.Instead he seems to bring out the idea of a more Durkheimian strand of groups and the importance of formal and informal groups at the workplace. Tony Watson (2008) highlights a case which can mirror a comparison with the idea of groups. A researcher found that within two departments that the department with a higher level of social solidarity, were more bonded with similar experiences, and just had a group or community type setting. Thus it lends the reader to ask whether or not the managers at the firm aimed to bring out such factors and create a motivator in and of itself out of the groups.Schulman (1993), shows the reader that â€Å"A new agreement had been negotiated between the Radiation protection officer and the night shift foreman to make minor modification in the design of scaffolding† however it was found that the night shift foreman failed to make mention to the day foreman. There is not sufficient evidence to show whether or not as well this could have been a case of negotiated order and they made the decision unknowing to the day because of their own benefits, as the day foreman did complain: â€Å"They are changing the rules in the middle of the game†. However the author shows how swiftly management resolves such an issue.Here management worked hard to ensure everything was cleared up and he states to â€Å"restore amicable relations between the two departments†. Therefore one can imply that at Diablo Canyon there is a focus of cohesion and agreement among the firm which takes a bit away from the scientific management realm that Taylor would talk about. Trust is a vital cohesive unit and this is brought about by as well the decentralization and separation of powers at the plant, aga in moving focus away from a manager centric role, at the plant there seems to be more of a worker oriented feel to an extent.This may be so whereby there are efforts to have weekly meetings hearing employee feedback as well as the breaking down of roles within the organization despite the rigid bureaucratic structure there is some flexibility which lends back to the point at the beginning of the paper by Schulman when he mentions â€Å"control slack†. To further contribute to the writing of Schulman using the thoughts and concepts akin to that of Industrial sociology, first to delve more into the issue of negotiated order as it relates to â€Å"slack†.A firm like Diablo Canyon can easily fall susceptible to unhappy workers, due to the type of environment managers ought to look out for informal social groups. While mention of it was made, looking at Durkheim’s analysis on social groups and how it impacts on a firm. In addition because of the environment being a p lant and having a somewhat scientific management style, the writer should have paid more particular attention to aspects of worker interaction and their feel of the job. Issues such as Deskilling and alienation of workers, how can a reader be sure that workers do not feel totally dissatisfied with their jobs.Watson (2008) brings forth the idea of Marx’s notion of alienation, whereby a worker because the monotonous nature of his job may start feeling estranged. One might argue that the mere groups and weekly meetings counter the feelings of estrangement and instead due to technology highlighted in the plant may be akin to Braverman’s (1974) idea of up skilling. The level of equipment highlighted needs a certain amount of skill even at the lowest level thus separating the workers of Diablo plant from a normal processing plant that may require much less skill.The entire focus of the writer delves into the aspect of as mentioned throughout efficiency of the worker this is achieved via motivation principles through groups and safety. The writer shows how management even though having a strong, rigid bureaucratic structure allows some control slack as well as the large number of informal groups may impact on negotiated order and other minor work disputes however due to the set of the organization these such disagreements are quickly dissolved and rectified.However the writer from an industrial sociologist standpoint failed to take in key considerations since it is a plant, issues such as alienation, deskilling could have been more addressed as well as more emphasis could have been put into the notion of negotiated order. Works Cited Parker, S. R. , R. K. Brown, Child J, and M. A. Smith. The Sociology of Industry fourth edition. London: Unwin Hyman, 2005. Schulman, Paul R. â€Å"The Negotiated Order of Organizational Reliability. Administration and Society 25. 3, 1993: 353+. Watson, Tony J. Sociology, Work and Indistry 5th edition. NewYork: Routledge, 2008. ——————————————– [ 1 ]. Watson, Tony J. Sociology, Work and Industry 5th edition. NewYork: Routledge, 2008. pgs 49-50 [ 2 ]. Schulman, Paul R. â€Å"The Negotiated Order of Organizational Reliability. † Administration and Society 25. 3, 1993: 353+. [ 3 ]. Watson, Tony J. Sociology, Work and Indistry 5th edition. NewYork: Routledge, 2008. pg. 3 [ 4 ]. Schulman, Paul R. â€Å"The Negotiated Order of Organizational Reliability. † Administration and Society 25. 3, 1993: 353+. [ 5 ]. Watson, Tony J. Sociology, Work and Indistry 5th edition. NewYork: Routledge, 2008. [ 6 ]. Schulman, Paul R. â€Å"The Negotiated Order of Organizational Reliability. † Administration and Society 25. 3, 1993: 353+. [ 7 ]. ibid [ 8 ]. Schulman, Paul R. â€Å"The Negotiated Order of Organizational Reliability. † Administration and Society 25. 3, 1993: 353+. [ 9 ]. ibid

Are Mobile Phones a Health Risk? Essay

Abstract In this report I aim to determine whether or not mobile phones pose a risk to our health. I will explain how mobile phone electromagnetic radiation can be perceived as dangerous, with reference to the EM spectrum. I will cite scientific sources of evidence which support both sides of the dispute, and will come to a reasoned conclusion as to how likely it is that mobile phones are a health risk. I will also evaluate the credibility of the sources used to support my conclusions, and list all the sources used throughout in a detailed bibliography. Introduction Mobile phones are becoming increasingly popular in today’s world; with around 80 million handsets in Britain, there are now more mobiles than people [1]. They’ve become an essential part of our existence, in business, in our daily lives and in keeping in touch with our loved ones – however, there is growing concern that this technology is causing serious health problems throughout the population, such as lasting brain damage and cancer. The Media consistently tends to portray mobile phones negatively, fuelling the public’s fears and misgivings: this study aims to determine from the scientific evidence whether or not mobile phones present a risk to our health. Main Points How might Mobile Phones be Hazardous to our Health? After studying numerous publications, I have found that if there are concerns about how mobile phones may pose a risk to the health of their users, they can be divided into two categories: The first is Electromagnetic Radiation from the phone damaging human cells and cause cancers and tumours. The second is that the EM radiation from the handset creates a heating effect. What is EM Radiation? EM radiation is something we are exposed to all the time: TVs, radios, satellite communications, etc all use EM waves to transmit information. Light is a form of EM radiation, as are the UV rays from the sun. The danger is that EM waves with a high frequency (UV rays, X-rays and gamma rays) are forms of ionizing radiation. This means that they have enough energy to damage cells and their DNA by stripping electrons from, or in very high energy radiation, even break apart the nucleus of atoms [2] and as such can cause genetic malfunctions which can lead to cancers. What are the Possible Dangers of Mobile Phone EM Radiation? Cancer-Inducing Effects of Radiation Mobile phones use microwaves in order to transmit their information, and not UV, X or gamma rays. Microwaves are not ionizing, and so are not as dangerous as the higher frequency EM waves. However, mobile phones are still relatively new technology, and the effects of prolonged exposure to non-ionizing radiation are still unknown, as is whether prolonged exposure to the microwaves of a mobile phone handset, especially so close to the brain, will cause any serious health damage. The Heating Effect of Radiation When EM radiation reaches an object, the photons’ energy causes the molecules of the surface they collide with to vibrate, creating thermal energy and warming the surface they collide with slightly. We use this everyday with infrared (another EM radiation) heaters etc. The concern here is that as handsets are held so close to the brain, this heating effect could warm the sensitive brain tissues, causing permanent damage. This, as well as the concerns about the possibly cancer-inducing radiation of handsets, is thought to be more of a risk in children, who have thinner skulls and a still-developing nervous system [4]. Physiological Effects of EM Radiation Effects of Low-Frequency (Non-Ionizing) EM Radiation In General It is important to remember that Mobile Phones utilise Microwave radiation, a non-ionizing form of radiation, so in my research I have also looked at the effects of low-frequency EM radiation in general; not just in the application of mobile phone technology. I have frequently found that concern for children specifically is raised as a common fear, and in the course of my research discovered an interesting study published by the Institute of Physics Publishing, which explored the effects of low-frequency electric and magnetic fields (i.e. those caused by EM radiation) on the foetus. The study concluded that the foetus was not exposed to electric and magnetic fields, though these fields were confirmed within the mother’s spinal chord. [5] Cancers and Brain Tumours due to Mobile Phone Radiation? The vast majority of recent publications agree that current evidence suggests that mobile phones (both the handsets and broadcasting/receiving masts) do not cause cancers or brain tumours – two very recent sources, one a joint-statement from the Nordic Radiation Safety Authorities, the other a Mobile Phone Fact-Sheet published by the Heath Physics Society, both agree that there is no evidence for mobile phones causing adverse health effects [6] [7]. However, the joint-statement goes on to acknowledge that the technology which uses radiofrequency electromagnetic radiation is still relatively new – only two decades old – and so active research must continue into finding out whether or not there are health dangers presented by radiofrequency radiation – this is a view agreed upon by the World Health Organization (WHO), which state the available evidence does not point towards any increased health risks attributable to mobile phone exposure, though further res earch and risk analysis should continue. [8] This said, the argument for mobile phones causing brain tumours still persists: the WHO also mentions that recent studies seem to suggest an increased risk of acoustic neuroma and certain brain tumours in users of analogue mobile phones for a time period greater than 10 years – A point corroborated by a 14 months study conducted by Dr Vini Gautam Khurana. Khurana’s study concludes that â€Å"Malignant brain tumours may take several years to develop, and the incidence of malignant brain tumours is increasing.† This suggests that mobile phones may have been causing brain tumours for several years previously, but due to the development period of these tumours, the effects would only just be becoming recognizable – and indeed the number of tumours is increasing. Khurana also goes on to address the point introduced by the WHO, that â€Å"There is a growing and statistically significant body of evidence reporting that brain tumours such as vestibular Schwannoma (acoustic neuroma) and astrocytoma are associated with â€Å"heavy† and â€Å"prolonged† mobile phone use, particularly on the same side as the â€Å"preferred ear† for telephony.† [9] In addition to Dr Khurana’s study, there are many older sources of information conjecturing about the issue – but most have been either outdated or discredited since their publication. Finally, it is worth noting that the International Commission on Non-Ionising Radiation Protection (ICNIRP), one of the main bodies who set international non-ionising radiation safety limits, set these limits based only on the thermal effects (i.e. tissue heating) of mobile phone radiation [10], due to the fact that this is the only scientifically substantiated risk to humans from non-ionising radiation in large quantities – possible risks of cancer-inducement by the low-frequency radiation are not taken into account due to a lack of internationally accepted proof. Discussion After studying the scientific publications and evidence above, I am of the opinion that the EM radiation of mobile phones cannot cause brain tumours or cancer because of the effects of ionizing radiation, as the microwaves emitted by mobile phones are simply too low-frequency to have the energy required; however, I do agree with the views of the NRSA [6] and the WHO [8], that as the utilisation of radiofrequency EM radiation is still a relatively new technology, it cannot fully be known at present whether or not it can still pose a health risk in the form of causing tumours by some other factor, and so research must continue – until conclusive evidence is found, I believe we should adopt a precautionary approach, minimising our use of mobile phones for extended periods of time. I think that Dr Khurana [9] raises a very interesting point about the period of time needed for tumours to develop and their increasing incidence. This seems to me a plausible explanation for the current increases in tumour incidence; however, I believe it important to acknowledge that the apparent correlation between mobile phone usage and brain tumour incidence does not necessarily represent a causal link: the increase in tumour incidence comes at a time when improvements in diagnostic techniques are constantly being made, and also at a time when the world’s population is increasing dramatically, and so the incidence of tumours could be expected to likewise rise. Conclusion After considering the scientific evidence on both sides of the dispute, Are mobile phones a Health Risk? I personally have come to the conclusion that mobile phones are unlikely to cause brain tumours or cancers because of the EM radiation emitted by either the handsets or their base stations. I believe this because, firstly, mobile phones use microwave radiation to transmit data, and microwave radiation does not have enough energy to be ionizing – it is my opinion that the media has demonised radiation in all forms by highlighting the dangers of ionizing radiation (e.g. Gamma rays – which have been proven to cause cancers) and from this the fears about mobile phone EM radiation have spawned. Secondly, I believe this as the overwhelming majority of recent studies have not found concrete evidence to suggest that mobile phones can cause tumours. As to the danger of the heating effect EM radiation from mobile phones warming sensitive brain tissues and causing lasting damage, I believe that this is much more likely to present a potential health risk of mobile phones as, firstly, the scientific theory behind it seems sound to me – it is an established fact that colliding photons from EM waves imparts to the molecules of the surface collided with energy, which causes said molecules to vibrate and heat up, and secondly, in my opinion the fact that the ICRINP sets the international radiation safety levels based solely on this heating effect adds great weight to the plausibility of the argument that the heating effect of mobile phones could pose a health risk (although the EM emissions of mobile phones are well below these levels). Overall therefore, I believe that there is some possibility that prolonged use of mobile phones (and so prolonged exposure to the heating effect of the EM radiation) could amount to a potential health risk and could cause lasting brain damage. I agree with the recommendation of the WHO to adopt a precautionary approach to mobile phone use; to only use them for extended periods of time when absolutely necessary. Evaluation of Credibility of References * [6] The Joint-statement from the NRSA – one of the most recent sources available, meaning that its content is highly likely to be up-to-date. The combined expertise of the NRSA greatly increases the sources reliability, as does the reputation of providing accurate and honest information that these authorities have to uphold. However, it could be argued that some vested interest may exist as mobile phone giants Nokia and Erikson are based in Finland and Sweden respectively, and so the authorities may have been trying to protect their countries’ economies in the downturn by presenting mobile phones in a positive light. * [7] The HPS Mobile Phones Fact-sheet – this factsheet is again a very recent source, and again the HPS has a lot of expertise in matters of health-related physics; both of these factors increase the source’s credibility considerably. * [8] The WHO – although this source is quite old, which gives scope for it being outdated, the WHO is a very reputable source looked to internationally for recommendations for policy etc. due to its wealth of expertise and independence. These three factors all increase its credibility, and in my view outweigh the age of the source (and in any case, the WHO would have updated its information if required). * [9] Dr Khurana PhD, FRACS’s study – Dr Khurana is a highly qualified individual with great expertise in the field, and furthermore included in his study a period of over 14 months of his own research, meaning that he had a great ability to see the effects of radiation on health, both of which strengthen the source’s credibility. Bibliography of References * [1] Number of Mobile Phones in the UK statistic from: The Daily Mail – http://www.dailymail.co.uk/health/article-1224827/As-new-evidence-links-mobile-phones-greater-risk-tumours-using-cost-child-life.html Last Updated: 3/11/09 * [2]The U.S. Environmental Protection Agency – http://www.epa.gov/rpdweb00/understand/ionize_nonionize.html Last Updated: 22/10/09 * [3] Image of EM spectrum from: The Australian Radiation Protection and Nuclear Safety Agency – http://www.arpansa.gov.au/mobilephones/mobiles1.cfm#1 * [4] Prof Kjell Mild, of Orbero University, Sweden – http://www.telegraph.co.uk/news/uknews/1565477/Mobile-phone-cancer-risk-higher-for-children.html Published: 8/10/07 * [5] The Institute of Physics Publishing – http://www.iop.org/EJ/article/0031-9155/52/4/001/pmb7_4_001.pdf?request-id=2266623f-5097-4aa8-a71d-fa1e83b6a0fc Published: 17/1/07 * [6] Joint-statement from the NRSA – http://www.stuk.fi/stuk/tiedotteet/fi_FI/news_578/_files/82468261251448918/default/Nordic_Statement-EMF161109.pdf Published 19/11/09 * [7] HPS Mobile Phones Fact-Sheet – http://hps.org/documents/mobiletelephonefactsheet.pdf Adopted: September 2009 * [8] WHO – http://www.euro.who.int/HEN/Syntheses/MobilePhones/20061017_10 Last Updated 13/11/06 * [9] Dr Vini Khurana’s study – http://www.brain-surgery.us/mobph.pdf Copyrighted to G.Khurana 2008 * [10] The Human Ecological Social Economical Project – http://www.hese-project.org/hese-uk/en/niemr/icnirp.php Accessed 13/12/09 * [11] Image of Ionizing Radiation from: radiation, Science and Health inc. – http://www.radscihealth.org/RSH/docs/Pollycove98_Ottawa.html

Multinational Companies Essay Example | Topics and Well Written Essays - 500 words

Multinational Companies - Essay Example The two companies equally believe in being socially, ethically as well as environmentally responsible and accept their duty towards the society, making every effort on their part, to come up with safe products which contribute towards creating prosperity and opportunity for the global citizens. It is not unusual to find out that customers are considered to be the most valued stakeholder by both the companies. Samsung as well as GE strive to deliver first-rate products and services to their customers, while focusing on integrity and excellence simultaneously. Another vital similarity that exists between the companies is with regard to innovation and change. Samsung, with its innovative products ranging from camcorders to refrigerators, considers innovation to be extremely critical for a company’s survival in today’s fast-paced world. On the other hand, GE too, with its vast array of innovations in light bulbs to aircraft engines, has always believed in innovation to be a major factor for a company’s growth.   Ã‚  Ã‚  Ã‚  Ã‚   Apart from the similarities, there exist certain definite differences between the two Multinational Corporations. Though both the companies believe in workforce diversity and in hiring the best talent from across the world, GE is more all-encompassing in its view on diversity. GE not only believes in diversity on the basis of nationalities but it also considers diversity on the basis of class, gender, race and community as equally important. As stated in (GE, 2012), GE commits itself to support the Gay, Lesbian.

Martin Luther King Jr,s Letter from a Birmingham Jail, Critical Essay

Martin Luther King Jr,s Letter from a Birmingham Jail, Critical Analysis - Essay Example King attempts to persuade his readers that his position is valid. King defends his stand in the Birmingham Campaign by making skilful use of the rhetorical techniques of ethos, logos and pathos. King begins his letter by using the persuasive technique of ethos to establish his authority and his credentials. He asserts his position as the President of the Southern Christian Leadership Conference, which is affiliated with the Alabama Christian Movement for Human Rights (ACMHR). By categorically stating, â€Å"(I) am here because I was invited here. I am here because I have organizational ties here,† (King, 6), King makes it clear that his presence in Birmingham is at the express invitation of the ACMHR, and is eminently justified. He establishes his credibility as a spokesman for the protestors, and his right to participate in the campaign. King effectively foils his critics’ bid to depict him as an outsider. By acknowledging his critics to be â€Å"men of genuine goodwi ll† (King, 6), and demonstrating his willingness to give their views patient consideration, King enhances his own good-will and position as a fair-minded person. King emphasizes the common ground held by him and his critics. By addressing his letter to his â€Å"Dear fellow clergyman,† King emphasizes their shared religious calling. His repeated allusions to Christian belief and personalities, including his references to the Apostles and Christ, serve to reiterate his commitment to the church and vouch for his good moral character. He categorically states that his primary identity is that of â€Å"a minister of the gospel, who loves the church† (King, 13). Again, he declares that he is â€Å"the son, the grandson and the great-grandson of preachers† (King, 14). King unequivocally tells his critics that he is one of them. Having established his credentials through ethos, King goes on to use logos to convince his readers as to the reasonableness of his stand . His defense of direct-action is a remarkable study in logic. First, King justifies his form of protest by arguing that â€Å"In any nonviolent campaign there are four basic steps: collection of the facts to determine whether injustices exist; negotiation; self purification; and direct action† (King, 7). He then takes up each of these steps in turn and provides evidence to support his direct-action program. First, he calls attention to the fact that â€Å"Birmingham is probably the most thoroughly segregated city in the United States† (King, 7). Second, he details the failed negotiation process. Thirdly, he gives an account of the preparation for non-violent protest. Finally, he justifies direct action, by eloquently describing it as â€Å"the need for nonviolent gadflies† to goad the authorities to negotiation (King, 8). Again, King logically supports his defiance of the laws by distinguishing between â€Å"two types of laws: just and unjust† (King, 9). He cleverly equates the segregation statute with unjust laws and puts the moral law of the Church above it. This effectively absolves him of any transgression of the law. King links his civil disobedience to that of the Christian martyrs, to Socrates, the American fight for independence and the anti-Gestapo resistance. These analogies support his logic and enable King to defend his argument. There can be no doubt that King is a past master in

Marketing Communication Essay Example | Topics and Well Written Essays - 1500 words - 1

Marketing Communication - Essay Example Marketing communication should reach a range of stakeholders and other players peripheral to the target market and which influence the business success (Clulow, 2006). Benefits and pitfalls of stakeholder responses should be anticipated and used to advantage. In the case of BMI the main marketing objectives was to introduce its product. It was planning to launch a low-cost airline subsidiary to compete with other low-cost carriers. They needed the services of an advertising agency because the launch required strategic brand development before the advertising plan could be developed. The marketing communications objective for BMI was challenging because the advertising agency had to launch a product with no brand name or brand image. Corporate communications in an airline must have certain differential features to influence travelers and establish brand image (Driver, 1999). BMI enjoyed a reputation for friendliness but the branding and positioning of the new product needed to have a low-cost approach. This required a strong brand image to distinguish it from long-established competitors. Another objective of marketing communications for the new airline was that even though the market for low-cost airline was still growing, it would reach a saturation point within 2 or 3 years. The passengers would then make a decision based on their experience. Consumers retain images of their experience with an airline or any service and this personal experience becomes the key driver for future purchases (FitzGerald & Arnott, 1999). Consumers are known to retain that brand in memory and if satisfied, it becomes their preferred choice. The attributes related to the image of the airline are only partially related to direct operational and flight factors. Relationship marketing emphasizes the need for firms to establish lasting relationships with customers, suppliers, employees and stakeholders through trust, relationship commitment and

Automatic transmition vs manual transmition Essay

Automatic transmition vs manual transmition - Essay Example There are two main types of transmission systems in use today: manual transmission systems and automatic transmission systems. This paper shall analyse them using a literature review with the objective of establishing their operation, as well as the merits and demerits of each system. The first vehicular transmission system is the manual transmission system. One major characteristic of this transmission system is the driver’s ability to change the gear ratio using a gear lever as deemed necessary due to engine load changes or terrain differences (Denton, 2012). The driver achieves this degree of control over the power output fed to the vehicle’s wheels through a clutch system that disengages the engine from the drive shaft leading to the wheels. Manuals transmission systems mainly fall into two distinct groups: trans-axle transmission systems and in-line transmissions systems (Heisler, 2002). The former finds application in front-wheel vehicles such as normal family sedans, while the later is applied in four-wheel and rear-wheel drive vehicles. Automatic transmission systems distinguish themselves from manual transmission systems by virtue of the driver’s limitation in changing the vehicle’s gear ratios as this happens in an automated manner. These vehicles achieve this level of transmission automation through a torque converter powered by hydraulic fluid driven by the engine itself (Duan, 2014). Therefore, using a system of planetary gears and clutch packs, the engine’s own load and speed engages the required gear ratio using a set of blades in the converter system called the impeller and turbine (Erjavec, 2010). It is important to note that the workings of an automatic transmission unit are far more complicated that this report’s simplified outline, due to the existence of other complex components such as governors and modulators as well as numerous

Mediation Paper Research Example | Topics and Well Written Essays - 1750 words

Mediation - Research Paper Example Man is also a social being. Because he belongs to the civilized society, man is expected to interact with his fellow human beings and form a variety of relationships like friendship. When man is required to make decisions, he may or may not solicit his friends’ opinions. â€Å"†¦in making decisions, people often consider all relevant information...† (Goodell, 2009) For man, a rational and social being, friends are important and so are their opinions which usually form part of man’s consideration. Since it is not a perfect world, man may have altercations with others. These can be trivial ones and/or serious fights. Whatever the dispute is, some form of mediation comes into play. In mediation, a neutral third party works with the people involved to resolve their dispute. (Kline, n.d.) â€Å"Unlike a judge or arbitrator, a mediator has no decision-making authority†¦[he] acts to facilitate the parties reaching their own solutions.† (Mediation v. Litigation, page 1) In mediation, the decision-making authority rests with the parties. (The Mediation Process, page 1) Thus, it is very important for the parties to take note of every variable before reaching an agreement. As mentioned earlier, being a social being as well as a rational one, it is common nature for man to hold his peers’ opinions as one of those variables. These people, who are not actually sitting around the table, can have a deep effect on mediation. (Rosenthal, 2009) One wonders just how strong a man is influenced by his peers’ opinions. Already, the strength of peer influence has been recognized and researched as evidenced by the studies done on peer mediation. In one article, researchers shared the results of their project â€Å"designed to investigate the effectiveness of a school-wide conflict resolution curriculum and peer mediation program.† (Daunic, et. al., 2000) The research was done in three middle schools.

Should taking photos be allowed everywhere Essay

Should taking photos be allowed everywhere - Essay Example Individuals often take photos for different reasons and in different avenues; however, issues may arise regarding where individuals decides to take their photos for various reasons that include privacy or security reasons. On another note, society today is liberal and this puts into question why people should be denied the liberty to take photos where they like. Taking photos needs to be allowed everywhere since this will allow individuals to relive their best memories on planet earth. This is especially important for those taking photos as a leisure, to commemorate a particular event or as a profession for instance photo journalism. In the contemporary world, photography has become part and parcel the working class, the youth and families who wants a piece of past events to keep as a souvenir. In industrialized nations such as the United States, United Kingdom and Japan are more attracted to tourism as a way of spending their vocation. In order to keep the memories of the areas that they visit as a tourist, taking photos is important for such tourists. This allows the tourists take back home part of the regions that they visit during their vocations. When back home such photos give some sense of satisfaction regarding how a person spent his vacation, this is often shaped with workmates or friends back home. The workplace is often hectic for professionals and vacations exist to help individuals to take a leave from the work environment. However, instead of resting home, these individuals often prefer to spend their vacation in a way that they will remember for a longer period. This has led to the establishment of vacation sites across the world. The scenes at these sites are often fascinating and tourists want to remember such sites by taking photos. On the other hand, photos hold a special place for families and in terms of remembering lifetime events such as

Health Care and Pharmaceutical Industry Research Proposal

Health Care and Pharmaceutical Industry - Research Proposal Example Hence consolidation can be in the form of merger between two or more pharmaceutical companies, acquisition of one pharmaceutical company by another, merger or acquisition between a formulations company and a bulk drugs company terming which as vertical integration will be more appropriate. There can also be mergers or acquisitions between a health care industry and a pharmaceutical industry, a form of vertical integration. All these activities centre around one goal, that is consolidation. The generic meaning of consolidation is strengthening. Hence consolidation is for obviously strengthening of merging entities. The question this proposal however poses is who the beneficiaries of the consolidation are. The stakeholders in the consolidation process are shareholders of the company, its consumers, its suppliers, its customers, its employees, Government and environmentalists. Apart from them, behind the scenes are the consultants and the directors of the company who manipulate consolid ation. This proposal will undertake a detailed study as to who the real beneficiaries of consolidation are. This is the research question the proposed research will address for which purpose detailed literatures review will be undertaken. The very question presupposes existence of a problem of who actually the beneficiaries are in consolidations. There are bound to be vested interests beneath the surface and in the deliberate hostile takeovers. Problem viewed in this context, the research question gains significance as to whether consolidations are serving the interests of stakeholders or the vested interests which may be against public policy. The outcomes examined on case by case basis may be mixed. Therefore the study has to see the overall impact of consolidations in health care and pharmaceutical industry. To this extent, the issue is problematic and answer is not readily forthcoming without a deep research into the subject. Objectives of Research To examine the benefits of consolidations. To ascertain risks associated with the consolidations. To make a comparative study with consolidations in other industries and ascertain why pharmaceutical or health care sector is unique .and To arrive at a balanced view for future policy. PART 2: Literature Review This part of the paper is important in that literature review is part of the research methodology by which the researcher will examine data already available on the subject of study. In research parlance this is the secondary data through which the research questions raised in the study will be likely to be answered if the data so gathered is adequate. Generic drugs manufacturing companies were once poor relations of the pharma industry. But they have now grown and attained international stature via acquisitions. In 2006, the generic drugs' sales all over the world were $ 77 billion. (URCH) Shukla (2006) states that pharmaceutical companies across the world persuade their counterparts for consolidation with a view to benefit from their respective core competencies in various segments of R & D, manufacturing and unique marketing opportunities in a global setting. Pharmaceutical comp

The art history Essay Example | Topics and Well Written Essays - 1000 words

The art history - Essay Example Arts are revolving but language is also evolving. This means that it exists in different definitions. It depends on the understanding of an individual. At some point, it is seen as a therapeutically process. It could be with corrective or treatment aim that involves painting. The process can be satisfying or frustrating for an individual depending on a person’s interest. The end product is the part that will produce an exhibition of the art. Therefore it can be considered as the process of creating in a secondary manner. It still does nit change that it is a non verbal form of communication that aims at stating the objective or purpose. This type of art is defined to produce certain changes in the personality of an individual. Aesthetics is a form of art that is connected to contemporary arts. Contemporary arts describe painting to posses two definitions which could be rated as inspirational (aesthetic) of craft. This means that it is an inspiration to create something beautif ul. All this should be stated behind the mind of an artistic personality. The real definition of aesthetics reveals that it is a form of philosophy that deals with beauty, taste and art. Appreciation and creation of beauty should also come along in the definition for it to be complete. Scholars in the field define it as critical definition of art and beauty that comprises f nature and culture. Aesthetics can be traced back to pre-historic arts that were done in ancient arts. Since then, it underwent a slow revolution. as it is considered the philosophy of art. Most artists in this field believed that beauty is a factor that should be disclosed as an inner sense hence a subjective fact. William Hogarth believed that it consists of many attributes including fitness of some of its part into the design system. By the beginning of the 18thcentury, art had a totally different meaning. It revolved around pursuing a skill that was directed to the aim of creating taste or a clear production of what is considered beautiful. This is the first time that taste and beauty are mentioned in association with art. Artists like Francoise Bouncher were part of bringing out the taste and elegance in art. By the 19th century, art was aimed at pleasing with beauty as the major object. The relevance in this is that the idea in the art is the center for what is shown in the piece of art. Avant Garde was the brain behind the idea of skills exhibited by an artist. According to him, these skills were for the purpose of providing moral and

How to analyze an ad Essay Example for Free

How to analyze an ad Essay Analysis of how a particular advertisement attempts to appeal to consumers By giving form to audience motives and desires, advertisers have the best chance of arresting attention and affecting communication. This is an analysis of the lift advertisement for Maxwell House Coffee created by the design agency Ogilvy Beijing of China. When the doors opened, sleepy people in an office building were shocked awake, providing a tongue-in-cheek metaphor for the effects of drinking a cup of Maxwell House Coffee. The marketplace has grown increasingly congested in a frenzied competition for the consumer’s attention. Within this context advertisers believe that in order to get consumers to buy their product ads need to have two orders of content: an appeal to deep seated emotions and information on the product. A sales pitch is used to attract attention and effectively convey the virtues of the product on offer. Elements of good layout are necessary to control the message. Emotional appeals seem to fall into several distinguishable categories. Every ad uses a variation of these appeals: the need for sex, affiliation, guidance, prominence, attention, autonomy, or the need to nurture, aggress, achieve, dominate, escape, or to feel safe. This ad totally circumvents all conscious reaction when the lift doors open to reveal a gaping hole. The illogical link between a gaping hole in the floor and a cup of Maxwell House Coffee is embedded in the metaphor: a better way to wake up. The link is forged pre-logically in the mind of the person who steps into that lift. Ones primal instinct is to protect oneself from falling. This is so deep-seated and spontaneous that the advertiser leaves no other option for the onlooker. This ad relies on aesthetic sensation for its appeal which, needless to say, has been executed with perfection. Nothing in this layout could be added or left out. Apart from the initial â€Å"shock† the onlooker has to admire the optical illusion and the cleverness of its presentation. The impact of this ad on all of one’s senses is undeniably large. Other appeals that are present in a lesser and overlapping degree are a need to nurture; a need for guidance; a need to escape; a need to feel safe; and a need for curiosity. Stylistic features are not appeals in themselves but influence the way the basic appeal is presented. This ad could be classified as avant garde. This ad is innovative, experimental and unconventional. The most striking element of the ad is the floor graphic which instantaneously grabs ones attention and penetrates the mind so profoundly, you’ll never forget the experience. The viewing angle on this ad relies on the premise that people instinctively look down when entering a lift, not only to look where they are stepping, but to avoid eye-contact with strangers. When they do look up, they look straight into the solution: a cup of steaming hot Maxwell House Coffee to â€Å"wake up†. Targeted customers: sleepy office workers. All the elements of the ad come together in a single appeal: drink Maxwell House Coffee to wake up. The vast majority of ads employ a common set of textual features: headlines, body copy, and slogans. Copywriting has a function: to sell the product. This ad epitomizes the words â€Å"art in pursuit of a business goal†. The floor graphics replace the need for a headline. The body is presented in a most refreshing way (no pun intended) and consists only of two words embedded in the steam to further engage ones imagination of the aroma of freshly brewed coffee. Body copy follows a picture and caption style. The traditional need for a slogan is sufficed by the placement of the logo of the product on the coffee cup. The elements of the layout of this ad totally control the way the message is received. The message is delivered in a uniquely creative and totally unexpected way. There is no competitive â€Å"noise† as the presence of the ad takes up the whole space within the lift. All layout elements have been used to maximum effect: attention, balance, proportion, movement, unity, clarity, simplicity and emphasis. Balance is achieved by proper weight distribution. In this ad the weight is on the floor. One’s knowledge of the effects of gravity plays a subconscious role. The tonal quality of the floor graphic and its fear inspiring content visually pulls one â€Å"to the centre of the earth and back again†. The poster is optically centered so the reader cannot miss the â€Å"sales pitch† and the artistic composition is nothing short of excellent – the floor graphics, the bare lift, the metallic surface of the lift walls and the design and placement of the single poster. In a highly original way forceful emotions are brought forth in an experience of uncontrollable surprise. The presentation of the information in the poster is reserved, dignified, formal, clean, uncluttered. One’s emotions guide the consumer through the ad, from beginning to the end. Directional impetus favors the elements to be stressed. The onlooker has nowhere to go. The recipient is taken â€Å"inside† the advertisement. Inside the lift, there is nothing to compete with it. The layout is unified by the confines of the lift, the muted colors of the walls, and the complementary colors in the poster. The inside of the lift determines the parameters of the ad space. This is a classic use of â€Å"white space† where the advertiser cleverly employs the barest necessities in such a profound way that this ad and the product it offers become unforgettable. The two important elements of shock (floor graphic) and solution (poster) are uniquely and very cleverly tied together. The message is clear and simple. Wake up with Maxwell House Coffee. Emphasis is achieved through the dominant element, the floor graphic which contrast sharply in size, placement and most of all its the impact to that of the poster which is strategically placed in the optical centre of the lift wall, directly opposite the doors (shock versus solution). Perfect. Does this ad effectively appeal to its target market? Yes, profoundly. And here is why: The chief element of this ad is the clever use of graphics to depict a gaping hole in floor of the lift. The product information is minimal as it needs no elaboration. The logo and a cup of coffee are all that is required. The rest is dependent upon the recipient’s own experience and feelings towards the product. The target market is well defined. The communication between the producer and the consumer is crystal clear and totally unambiguous: This product is experienced to be genuinely gratifying to the prospective consumer and a even non-coffee drinker will enjoy the emotional â€Å"ride† offered by the advertiser. Here both ends of the communication channel have been abundantly rewarded. The ad is clever, innovative, refreshing and directed at one appeal: drink Maxwell House Coffee. This won an international award for â€Å"Best use of Ambient Media: Large Scale† in 2008.

Terrorist Threats Faced In The Uk Criminology Essay

Terrorist Threats Faced In The Uk Criminology Essay For Steven Greers article on anti-terrorism law, there were many distinctions he picked out when taking into account the background, and other facts on the terrorism organisation. He contrasts between the threat before 9/11 and after 9/11 using Northern Ireland and Al-Qaeda as his examples. He states how Northern Ireland were subjected to the diplock process, characterised by non-jury courts, extended police and army powers to stop and question, stop and search, search and seize, and arrest and detain for up to seven days without charge. He emphasizes and distinguishes how most of the people arrested under this diplock process, three quarter of them were released. And convictions mainly based on largely based on confessions extracted in police interrogation or obtained as a result of evidence provided by supergrasses. Mr Greer distinguishes the shoot to kill policy, whereby it was introduced before 9/11. There is evidence that elements in the British security agencies colluded in mur der with Loyalist paramilitaries due to this policy. Another distinguish is the seven day policy, Mr Greer points out how before 9/11, the united kingdom had seven-day detention provision did not violate the Convention because there were grounds for maintaining that the conflict in Northern Ireland amounted to a public emergency threatening the life of the nation. In 1998 human rights act was introduced whereby it empowers UK courts to consider whether anti-terrorist detention provisions are compatible with the Convention and, if necessary, to force a government rethink as dramatically occurred in the Belmarsh case in 2004. For post 9/11, Mr Greer using the two prime examples, to outline how each of them operates differently and how much of a risk they are to the UK. He states how some people perceive terrorism as too broad the long war where it is more of a struggle against terrorism with terrorism in the UK context meaning something narrower than the definition, namely violent threats to a liberal democratic state and society .He distinguishes many factors which when putting into account make the pre 9/11 terrorism seem minor implications. First, he distinguishes post 9/11 how the IRA embraced a modern, secular, nationalist ideology, whereas AQT terrorists invoke Islamism, a political ideology which relies heavily on Islam, a pre-modern religion. Consequences of this, Muslims in the United Kingdom and elsewhere would repudiate as inauthentic and illegitimate. The second difference is that the IRAs violence had limited territorial objective to enhance the political power of the nationalist minority in the north of Ireland. It was never intended to destroy a civilization or a way of life. Indeed the way of life. Post 9/11 threats to the UK Greer points out how terrorist organisations such as AQT their goals were much more ambitious and were clearly linked to a conflict over control of territory in the Middle East and not Britain. Greer also points out British jihadists are motivated by a sense of injustice stemming from disadvantage and discrimination suffered by British Muslims. In contrast with pre 9/11 and post 9/11 the old-fashioned nationalism of the IRA is quite different to Islamist terrorism objective to destroy the West as a decadent and ungodly anti-civilization. Another distinction that Steven Greer uses is the terrorisms fire power. He shows how pre 9/11 the IRA never used suicide bombs, which in contrast to post 9/11 is the favoured method of AQT terrorism. The IRA always had in mind to minimise civilian casualties whereas post 9/11 AQT terrorism seeks to maximise civ ilian casualties. Steven Greer also outlines how pre 9/11 the IRA remained a centrally-controlled and hierarchical paramilitary organisation. Whilst AQT organisations, very loosely structured with no central command other than the inspiration provided by charismatic and highly independent leaders. In the sense outlined, the IRA was a terrorist organisation and Al Qaeda type (AQT) associations are terrorist organisations. But there the similarities end. There are nearly a dozen much more significant differences between post 9/11 and pre 9/11 threats facing the UK. Mr Greers distinctions are very clear to where each terrorist organisation differs for instance when it comes down to casualties, pre 9/11 the IRA would try to minimise the casualties and be effective but post 9/11 the more casualties the better for AQT. It may be that the law has not been so harsh on anti-terrorism that the boundaries on casualties have increased. During the years the fire power and technology has become m ore advanced such as bombs, effectively to deter people or stop them security measures and more harsh laws have been placed. This could explain the 28 day period they can derogate them for, in order to have enough time to gather evidence. Relatively the key objective of antiterrorist laws must now be to contribute significantly to the prevention of attacks and to prosecute those responsible before they occur, since the risk has tripled from pre 9/11. To be effective as possible when risks such as this are at large, gathering accurate intelligence and responding to it appropriately is crucial relating back to pre-9/11 police confessions amount to arrests is not enough. However misuse of these powers could lead to inaccurate evidence such as the insensitive use of stop and question and stop and search powers can provoke anger which, in turn, can cause more damage to intelligence-gathering than the information produced. The use of arrest and detention powers for intelligence-gathering purposes is also incompatible with the European Convention. So by law Human rights should overrule the arrest and derogation powers. What did the Law Lords rule in relation to the provisions under the Anti-Terrorism, Crime Security Act, 2001 concerning indefinite detention, without charge, of foreign nationals? Where are we now in terms of extraordinary powers of detention in cases of suspected terrorism? The Anti-Terrorism, Crime Security Act gave the Home Secretary power to verify a foreign national as a suspected international terrorist (s. 21). The House of Lords Judicial Committee on December 2004 concluded with their judgement on the compatibility of the Part 4 powers with the (ECHR). The Human Rights 1998 (Designated Derogation) Order 2001 was crushed and section 23 of the ATCSA was affirmed to be incompatible with Articles 5 (right to liberty) and 14 (freedom from discrimination) of the ECHR. The House of Lords considered Part 4 powers were discriminatory. Their reasoning was it only applied to foreign nationals and also acknowledged that they were not proportionate to threats the UK faced was facing on terrorism. From this action, the Government replaced the Part 4 powers with a new system of Control Orders. Control Orders would be subjected to all suspected terrorist, whether him or her being a UK national or not. Also whatever the aim of his/her terrorist activity is. In cases of extraordinary powers on suspected terrorism, control orders allows the authorities to impose conditions from prohibitions on accessing items or any service, restrictions on being with particular individuals, or restrictions on movement or curfews. The Home Secretary has the power to make a control order based on any intelligence provided. On suspected terrorism, Control Orders could be varied and controls changed if the individual poses a larger threat. These types of powers may be up to certain strict periods, as Control Orders will be time limited and can be set up to 12 months at a time allowing them to be renewable thereafter. The powers are set strict enough to when breach of a condition, it would be a criminal offence most likely of imprisonment. In the light of what you have read, do you consider that a period of up to 28 days detention without charge of those suspected of terrorism is reconcilable with Article 5, ECHR and with the ECtHRs jurisprudence on extended detention periods in such cases? In light of what I have read, 28 days is too much to keep a person in pre-trial detention on charges of suspected terrorism. The 2006 Terrorism act , I doubt would have considered beforehand putting a person away for 28 days what would the damage be to the mental health, personal and family relationships and employment of the person detained for periods as long as this. Putting people under long detention periods by the police may amount to a confess at the end, but might it is also well known that detention rules such as these can produce false confessions which, in their turn, can lead to miscarriages of justice. Steven Greer outlined this prime principle with his example of the evidence gathered on Northern Ireland indicated that most confessions in such processes are, in fact, made in the first 48 hours. But that was pre 9/11 however now the risks are much bigger several days would seem the best option. In contrast with Article5 (2), a person shall be informed promptly of the rea sons for the arrest and any charge against them and that they shall be brought promptly before a judge (Art.5 (3)). The 28-day pre-charge detention period would, therefore, appear to constitute a violation of human rights. In a more logic instances, factors should be considered and outlined on whether this person should be detained for longer, for example if the person is a potential threat to community and has previous charges of providence false statements or evidence. In any trial before on suspected terrorism it should be what characteristics does the current terrorist threat have, which would be able to extended power of pre-charge detention? The Government originally advocated a 90-day period on the grounds that much more time is required, is too extreme. This in most instances should violate the rights of an individual person. 28 days is still to be considered under the Convention test let alone 90 days or 42. In comparison other western democracy i.e. the USA, it is quite astonishing that the United Kingdoms 28-day has the longest pre-charge detention period. Under U.S. Federal law, the maximum period of pre-charge detention is 48 hours. This limit comes from the Fourth Amendment to the US Constitution. Overall, detaining people for 28 days without charge inevitably leads to injustice, and undermines our ability to fight terrorism. It also affects the British tradition of liberty and justice. Libertys Director, Shami Chakrabarti, has consistently argued against extended periods of detention in suspected terrorism cases and is critical of reliance on the states Article 15 power to derogate (enabling it to suspend the protection of the ECHR): It simply seems to me that a state of public emergency of indefinite length is as dangerous as the unending war on terror which allows the murderer to call himself a soldier. A limitless state of emergency is a contradiction in terms. It is no longer a temporary departure from the proper and normal order of society for as short a period as possible in order to re-establish means of existence, government and law. It is instead a new state of being. A state of constitutional poverty without the ethical framework that we most need in times of greatest difficulty. (last page of her article, Terrorism and the Rule of Law). Is she right? Libertys Director, Shami Chakrabarti, has regularly argued against extended periods of detention (imprisonment) in suspected terrorism cases and is critical of (confidence) reliance on the states Article 15 power to derogate (take away) (enabling it to suspend the protection of the ECHR): It simply seems to me that a state of public emergency of indefinite (unfixed) length is as dangerous as the (endless) unending war on terror which allows the murderer to call himself a soldier. A limitless (unlimited) state of emergency is a contradiction (conflict) in terms. It is no longer a temporary departure (retreat) from the proper and normal order of society for as short a period as possible in order to re-establish (re-build) means of existence, government and law. It is instead a new state of being. A state of constitutional poverty (shortage) without the ethical (moral) framework (structure/background) that we most need in times of greatest difficulty. (last page of her article, Terroris m and the Rule of Law). Is she right? Prior to shami chakrabati principle on how an unlimited period of public emergency is the same as an endless war on terror. Being able to derogate our rights on detention and on other rights, retreats us from the proper normal society we are living in today. Laws such as these will never be able to allow us return to normal but instead lead us into a state of a constituinoal poverty without the moral structure. Governments at a time like this would instead of focusing on how to prevent any terrorisim from happeneing, split our society up based on our views rather than our actions. As lod hoff man stated the real to the life of the nation comes not from terrorisim, but from laws such as these. An example can be the new-anti terror control orders surely the are likely to breach Article 6. Not surprising as to some quite significant interference with liberty without charge or trial. Another prime example being the government trying to extend the pre trial detention to ninety days. Sur ely under Article 5, demands prompts information on reasons of your arrest and any charges against you. And this is only for terror supects. Picture how ninety days in prison and being released without charge, not only would he be disgusted with the britsh laws but other people would stay clear of the police when it comes to co-operating with some useful inside information on the latest terrorist activity. Even so what with chakarbati giving some in sight on the rule of law , in todays news there are various news articles on how britian has been torturing our own british suspects in camps such as guantamano bay and Pakistan. The British have paid whatever costs to use all means possible to access any information relating to terrorists activity.

Dividend Payments Impact On Shareholders Wealth Finance Essay

Dividend Payments Impact On Shareholders Wealth Finance Essay Dividend  is a form of payment made to shareholders by an organization; Its a profit which is paid out to the company shareholders. When a profit is earned by the company, the profits are used again to invest for a better growth of the company for its future, or it can also be paid to the company shareholders in the form of dividends. Dividends are also paid to the shareholders in the form of cash or shares. The company must have sufficient funds in order to pay dividends to its shareholders. Dividends are generally paid out by a company only when the company make good profit and its been paid form its earnings. Dividend policy is of great interest n todays financial industries when the joint stock companies came into existences. Dividends can also be defined as a distribution of companys earnings which is decided by the board of directors to a class of its shareholders, dividend is also quoted as a percentage of the current market price. It is also known as dividend per share (DPS). Dividend can also be in a form of cash, stock or property. The level of dividends also depends on the companys dividend policy. Many large companies have a progressive dividend policy. They are usually paid after half year and full year financial results, even though some companies pay quarterly. There are various types of dividends which are as follows: Cash Dividend à ¢Ã¢â€š ¬Ã‚ ¢ Regular Cash Dividend, Special Cash Dividend, Stock Dividend Stock Repurchase Cash dividend: When a company pays dividend in the form of cash is known as cash dividend, cash dividends are generally paid four times a years to its shareholders. Such as Regular cash dividends and special cash dividends. THEORIES OF DIVIDEND POLICY: DIVIDEND RELEVANCE THEORY DIVIDEND IRRELEVANCE THEORY DIVIDEND RELEVANCE THEORY: This was a theory proposed by  Myron J. Gordon(1959)  and  John Linter(1956). Therefore, Dividend  relevance theory  suggests that investors are taking a risk generally  and would rather have  dividends today rather than share appreciation and dividends tomorrow. Myron J Gordon(1959) and John Lintner (1956) have also suggested that in the early sixties, investors see current dividends as less risky than future dividends and capital gains Dividend relevance theory also states that dividend policy effects the  share price of a company. Therefore, an optimal dividend policy should be determined which will ensure the better wealth of the shareholders. However some market participants state that there is some connection between share price and the dividend policy of a company. DIVIDEND IRRELEVACE THEORY: According to Modigliani and Miller (1961) the dividend policy is irrelevant to the share price of the company. The value of the firm is determined by the earning capacity of a company and not by its dividend decision. Modigliani and Miller (1961) pointed out that the investors who are rational may make the choice but maximise their utility, which are indifferent to receiving capital gains or dividend on their shares. The assumption of this theory states that: There are no transaction cost on the buying and selling of the shares Investors are having sufficient knowledge about the company Taxes are ignored Same interest rate would be available to investors According to the above assumption, the company which has good prospective with a positive NPV will have a good share price in the market. Dividend payment has impact on shareholders wealth: Arguments for and against of a cash dividend payout that would have an impact on the Market value of a company: Arguments in favour of the impact: Signalling effect: If a company pays dividend to its shareholders regularly, it conveys a message to its investors showing the current growth of the company and its future prospectus. Since company pays dividends regularly to its investors, they do not have any agency problem. Clientele Effect: There are two types of shareholders in the industry. One group who are accepting regular income as dividends for eg: Pensioners. The other group are the ones who are not expecting dividends, because they are interested in the future growth of the company by increasing the capital gain. Arguments against the impact: Tax effect: When shareholders receive income from dividends they have to pay tax which will affect their earnings. If the company pay high dividends to the investors, it would affect the earnings of the company. This would also reduce the cash flow of the company if it wants to make investments. Earnings: The market capitalization of the company depends upon the earning per share of the company and not on the dividend policy of the management. Investment: If the company pays all its earnings to the shareholders as dividend, they would not have sufficient reserves for future projects. Therefore the growth of the company is an important decision than the decision of the dividend. Liquidity: A company would not have any liquid cash left if it pays all earnings and profits to its investors. So liquidity is the main factor in a company as it would affect the business. Arguments for and against, whether a cash dividend is paid or not is irrelevant in the context of shareholder wealth maximization Arguments favoring the impact: The Net profit value (NPV) of a company plays a major role when dividends are given to its shareholders. Dividends would not necessarily be paid to its shareholders as destroying shareholders wealth in the real world is replaced with new set of shares. Retained earnings: If the company pays all the income to its shareholders as dividend, then the company would not have sufficient retain earnings to make investment in the profitable projects. If the company needs any funds for the future, it would borrow from sources like equity or debt markets which will increase the cost of the capital because the cost of external funds are comparatively higher than the cost of internal funds. Arguments Against the impact: Information content: If the company does not pay dividend regularly to its investors, shows a sign of negative signal to the capital market and hence the share price would also decrease in the market and would also affect the growth of the company. One of the major problems is the agency cost between the shareholder and the management. The shareholders generally expect a good growth of the company which would in turn give good dividend to the investors. But, the aim of the management is to grow the company in order to maximize the wealth and the power which may not be of interest to the shareholders. Arguments for and against weather dividend payments should be avoided, as they would lead to a decrease in shareholder wealth. Arguments favoring the impact of shareholders wealth: If the company does not pay dividends to its shareholders, the funds can be utilized for the future growth of the company. There would also be a dual benefit both to the company and the shareholder, where the shareholders may not need to pay an tax on dividend and for the company, they do not need to pay any transaction cost. There is also an argument to change the dividend policy from low to high payouts. Policy Formulation: In a company there is an administrative cost that is involved with the dividend policy which would in turn reduce the earnings of the company. Cost of capital: When a dividend payment is reduced, the external financing plays an important role in reducing the cost of capital of the firm. Due to this reduction of cost of capital, the value of the firm has increased because there is an relationship between cost of capital and the value of the firm. Arguments against the impact of shareholders wealth: If a company avoids dividend payment to its investors, shareholders would withdraw their investment that they have invested in the company and thus this would also have an negative impact on the shareholders wealth. Signalling effect: When a dividend payment is avoided there is an signalling effect which effects the growth of the company and will also have an impact on the share price and effect the shareholders wealth. FACTORS AFFECTING THE DIVIDEND POLICY OF A COMPANY: Stability of earnings: Companies which have regular income formulate regular dividend policy than those companies having an uneven flow of income. This can be easily know by the earnings of the company. Liquidity of Cash: The main factor in the dividend decision of a company depends on the cash flow. The higher the funds the company earns is better for the company in order to pay high dividends to the investors. In order to pay dividends the company needs funds and therefore the availability of cash will be the main factor of the dividend policy. Extent of shareholders: A company makes decision against the shareholders for the suspension of the dividend to its investors. On the other hand, a company having lots of shareholders are distributed forming high and low income group. This would also have difficulties in securing the assets, because of higher dividend. Taxation Policy: If a company pays high tax, not the earnings of the company would be affected but also the dividend would be decreased. Tax on dividends is waived by the government only up to a certain limit. This would in turn effect the capital growth of the company. Reduction in tax dividends reduces the value of all the tax payers. The capital gain tax is also likely to be below the shareholders tax rate. Shareholders may also prefer gapital gains to dividends. Directors resolve the conflict between the conflict of interest between the shareholders of a company. Past dividend rates: When the company pays dividend to its shareholders, it has to review the rate of dividend paid to the shareholders in the previous years, The dividend rate should be should be equal or more to the past dividend rate. Ability to Borrow: Only large firms and well established firms can borrow funds from the capital market and other external sources. These companies should have a good payout ratio. And smaller firms who are not well established rely on internal sources, and they would also have to build good reserves by reducing the payout ratio. Legal constraints: There were some constraints in the payment of dividends make by the UK government in the year 1960. There was some control in the payment of dividend. As a government measure, to overcome the anti inflation, but later in 1979, they removed these restrictions so the company must know the legal rules and the government policies before forming the dividend policy. Policy of Control: This is another main factor for the dividends. The control of the company is determined by the ordinary shares of the company. If the company wants to make investment they need funds. These funds should be obtained from equity capital, If they raise the equity capital, the new shareholders will invest in the company so the directors of the company have full control where they would not want to add any new shareholders to the company, and would announce a low dividend rate to its existing shareholders. The directors do not want to add new shareholders because they would not have any control and diversion on the policies of the management. Time for Payment of Dividend: Payment of dividends are planned in such a manner that there is no cash flow at the time of issuing dividends, as during the peak time of the company would require funds for urgent finances. Regularity and stability in Dividend Payment:   Companies maintain dividend equalization fund in order to pay regular dividends to its investors and also have a constant rate of dividends to most of its investors. Investment opportunity: While the board of directors make dividend policy decisions, they should consider if there is any profitable project or not. If there is a project in which they have to invest, then they have to announce a lower dividend to its shareholders. Opportunity to collect funds: The management should think about if there is any source to collect the required funds if needed at a cheaper cost, if not they should not announce more dividends to the shareholders. Growth: A growth of a company is one of the major factor and plays an important role when dividends are issued to its shareholders. Growth can be measured in sales, market share and the profit of a company. Conclusion: Dividend policy is concerned with level of dividends for the shareholders of a company. Thus from the above mentioned two theories, we can conclude the following: As per the opinion of Director A, dividend should be provided to the shareholders for the following reasons: Signalling effect: This conveys a message to its investors showing the current growth of the company and its future prospectus. Clientele Effect: If a company pays higher cash dividend to the shareholders, it gives more sign of chances about its future to its investors and the increase in dividends may lead directly to an increase in the companys share price in the market. As per the opinion of Director B, Dividend payment is irrelevant to shareholder maximization wealth for the following reasons. If the company pays all the income to its shareholders as dividend, then the company would not have sufficient retain earnings. If the company needs any funds for the future, it would borrow from sources like equity or debt markets which will increase the cost of the capital As per the opinion of the Director C, dividend payments should be avoided due to the following reasons. If the company does not pay dividends to its shareholders, the funds can be utilized for the future growth of the company. There would also be a dual benefit both to the company and the shareholder, where the shareholders may not need to pay an tax on dividend and for the company, they do not need to pay any transaction cost. Thus we conclude based on the managements views of a company on dividend payments and the effect on firm value. Because the dividend policy is a natural consequence of dividend theory being applied, the conclusions to this are categorised under the dividend policies, such as the managed dividend policy, and also there is a consequence of the relevant dividend theory and the residual dividend policy, a consequence of the irrelevant dividend theory.