Does wod strategy have a definite meaning in business parlance Essay

Does wod strategy have a definite meaning in business parlance - Essay Example With such rethinking, new ways are devised to counter the threats. Alternatively, some new opportunities may emerge in the environment which had not been there in the past. In order to take advantage of these opportunities the company reassesses the approaches it had been following and changes its courses of action. These courses of action are what we may call strategies undoubtedly strategy is one of the most significant concept to emerge in the subject of management. It has emerged as a critical input to organizational success and has come in handy as a tool to deal with the uncertainties that organizations face. It has helped to reduce ambiguity and provide a solid foundation as a theory of conduct business- a convenient way to structure the many variables that operate in the organizational context and to understand their interrelationship. When we think of long-term direction of an organization we immediately think of strategy. Matching of the resources and activities of an organ ization to the environment in which it operates is the basic requirement for strategy. This may be called as the search for strategic fit. Strategic fit is developing strategy by identifying opportunities in the business environment and adopting resources and competences so as to take advantage of these (Porter, 1980). ... Strategies exist at a number of levels in an organization. It is possible to distinguish at least three different levels of organizational strategy. Corporate level strategy (Andrews, 1987) is concerned with the overall purpose and scope of an organizational and how value will be added to different parts of (business units) the organizations. This could include issues of geographical coverage, diversity of products/services or business units and how resources are to be allocated between the different parts of the organization. The second level can be thought of in terms of business unit strategy (Hall, 1978) which is about how to complete successfully in particular markets. The concerns are therefore about how advantage over competitors can be achieved; what new opportunities can be identified or created in market; which product or services should be developed in which markets; and the extent to which these meet customer needs in such a way to achieve the objectives of the organizati on-perhaps long term profitability or market share growth. So where as corporate strategy involves decisions about the organization as a whole, strategic decision here need to be related to a strategic business unit (SBU). A strategic business unit is any part of a business organization which is treated separately for strategic management purpose. In public sector organizations a corresponding definition of a SBU might be a part of the organization or service for which there is a distinct client group. But confusion can often arise because an SBU may not be fixed in terms of an organizational structure. It may not be a separate structural part of an organization. The third level of strategy is at the operating end

Globalization Essay Example | Topics and Well Written Essays - 1500 words - 16

Globalization - Essay Example It is all about the monumental structural alteration occurring in the procedures of production and distribution in the global economy. This requires the existence and development of an information and communications infrastructure that is advanced and based on a proper communication system as well as better methods of dissemination of information. Globalization has brought about a shift in the traditional balance of power between nations in the global arena in that it has broken many barriers that restricted the movement and reach of people through networking and has given more power to distinct entities to influence both markets and the nation-states thus producing a super-empowered individual (Gilbert 173). Beyond all numbers, globalization has at least three impacts to all countries that embrace it in that it leads to fast economic growth, reduction in poverty and increasing more job opportunities. It pulls the countries out from their detachment into the competitive world that leads towards new collaborations and unity thus greatly reducing the distance and isolation that exists in the world into a global village making life extremely easier and comfortable. One of the most crucial advantages of globalization is that it has led to the generation of very many employment opportunities to the unemployed as well as income generation to the people in the host country as the migration of people has become easier thus leading to even better jobs opportunities. Similarly, globalization has expanded the capabilities of people to increase their ability to lead long and healthy lives, that has enabled them to cultivate and make good use of their talents thus affording them lives of dignity and self-actualization. This is done by increasing the stock physical capital, new technologies, changing institutions, altering incentives among others (Marmolejo 103). The formation of employment and opportunities to acquire

Earl Warren vs. William Rehnquist

Earl Warren vs. William Rehnquist Abstract This paper will discuss that, the outlook of the Chief Justice becomes the belief center for the Court; with each new Chief Justice appointed, the outlook of the Court also changes. Two major developments that the Court has gone through over a span of several years, were the periods when the Supreme Court was headed by Warren who became a liberal while on the bench and Rehnquist that remained ultra conservative; both were considered Republican yet had completely different views on how decisions should be made. This paper will compare and contrast their approaches to criminal procedure while on the U.S. Supreme Court, their significant decisions and their effects on the balance between social order and maintenance and individual liberties, and the effects of the Supreme Court’s decisions on law enforcement in the United States. Finally, the paper will discuss the Supreme Court’s approach to balancing civil liberties against public order maintenance. Earl Warren vs. William Rehnquist Introduction In the beginning of the 1950s, America had become a nation obsessed with freedom and social change. At approximately the same time, the Warren Court mirrored these developments. The following court, run by Burger built and upheld the developments that had already started. Warren and Burger’s Courts believed in a new idea, that the Constitution was in fact a breathing and living document, meant to adapt to the times. A new court surfaced, the Court of Rehnquist. This court deferred to the idea that the original Constitution was not only relevant when it was drafted, but that it remained so in the 20th and 21st centuries. The Warren Court During Earl Warren’s sixteen years as chief justice (1953-1969), the Supreme Court had profound impact on politics and government in America. The Warren Court was an extraordinarily activist, innovative tribunal that wrought far-reaching change in the meaning of the Constitution. Among its major decisions, the Warren Court out-lawed authorized racial segregation within public schools, required the equal apportionment of state legislatures and the House of Representatives, set strict national standards to protect the rights of criminal defendants, and ruled that prayers and Bible reading in the public schools were unconstitutional. And it handed down other dramatic decisions that won it both high praise and sharp criticism and engulfed it in great controversy. Riding the crest of the tidal wave of social change that swept through America in the 1950s and 1960s, the Court became a natural target of those who felt it was moving too fast and too far. The political reaction to its bold decisions was symbolized by automobile bumper stickers and roadside billboards that read â€Å"Impeach Earl Warren.† Before he retired as chief justice in 1969, Warren was asked to name the most important decisions of the Warren Court. He singled out those dealings with reappointment, school desegregation, and the right to counsel. Each of these cases symbolized one of three broad fields in which the Warren Court brought about far-reaching changes in America: the political process itself, civil rights, and the rights of the accused. In its reapportionment decisions, the Warren Court required that each citizen’s vote count as much as another’s. If the quality of a democracy can be gauged, certainly the individual’s vote is a basic unit of measurement. Until the reapportionment revolution of the Warren Court, voters were often powerless to correct basic distortions in the system of representation itself. The Warren Court’s Brown decision has not eliminated racial segregation in American schools or American society. But by striking down the officially enforced dual school system in the South, the Court implied that â€Å"all racial discrimination sponsored, supported, or encouraged by government is unconstitutional.† Thus the decision foreshadowed a social upheaval. The civil rights movement, the civil rights legislation of the 1960s, and the continuing controversy over the busing of public school children all followed in the Supreme Court’s wake. By the 1980s, the goal of integration appeared to be less important to many African Americans than freedom, dignity, and a full share of the economic opportunities of American society. Nevertheless, the Brown decision remains a judicial milestone; by its action at a time when much of white America was complacent and satisfied with the existing social order, the Supreme Court provided moral as well as political leadership. It reminded the nation that the Constitution applies to all Americans. The third broad area of decision by the Warren Court, the protection of the rights of criminal defendants, was yet another milestone for the Warren Court. In a series of controversial decisions, including Miranda, Escobedo, Gideon, and Mapp, the Court, bit by bit, threw the mantle of the Bill of Rights around persons accused by state authorities of crimes. In so doing, the Court collided directly with the electorate’s rising fear of crime; it was accused of coddling criminals and handcuffing the police. The Warren Court moved aggressively in several other areas as well, banning prayers in the public schools, curbing the anti-Communist legislation of the 1950s, and easing the laws dealing with obscenity. All this activity provided ample ammunition to the Warren Court’s conservative critics: The Court, they charged, had tinkered with legislative apportionment, forced school integration, overprotected the rights of criminals, banished prayer from the classroom, tolerated Communists, and encouraged pornography. Moreover, as many of the Court’s critics frequently pointed out, it decided many important cases by a one-vote margin. The Rehnquist Court After Warren Burger retired in 1986, President Reagan elevated William Rehnquist to chief justice and appointed Antonin Scalia, another conservative, to the Supreme Court. Even though Rehnquist was not as conservative as Burger, his associates were all supportive and pleased, even his Democratic opposites. His nomination was received with honest excitement on the part of not just his friends on the Court but also others who he had only had minimum contact with. The appointment of Anthony Kennedy in 1987, and President Bush’s appointments of Justices David Souter in 1990 and Clarence Thomas in 1991, meant that for a time, eight of the nine members of the Court had been appointed by Republican presidents. In the space of a relatively few years, the members and political philosophy of one of the three branches of the federal government had changed measurably. When William Rehnquist was sworn in as chief justice of the United States in September 1986, many political observers expected that his appointment would usher in an era of conservative decisions by the highest court. One location that various researchers expected to view substantial alterations in was the limiting of power of the federal government and increasing the power of the federal government and increasing the power of state governments. In time the Court did become more conservative, but that was not the case initially. During the Rehnquist Court’s first term, the liberals won all but two of the major cases and the conservatives prevailed only in the area of criminal law. A moderate-liberal coalition, led by Justice William J. Brennan, Jr. decided cases on affirmative action, teaching creationism in the public schools, protection for pregnant workers, and political asylum for illegal aliens. Moreover, the Court, by a vote of 8-0, threw out the Reverend Jerry Falwellà ¢â‚¬â„¢s suit against Hustler magazine. In so doing, the Court declined to curb criticism of public figures. But by 1988 the Rehnquist Court shifted in a more conservative direction, giving public school officials the right to censor school newspapers and plays, for example. However, many of Rehnquist’s wins directed toward the federalist objective of limiting Congress’s authority over the states had minimal practical impact. And after the appointment of Justice Anthony Kennedy, the Court in several decisions made it more difficult for workers to sue employers for discrimination. The Court’s action alarmed liberals and led to speculation that a conservative majority had finally emerged. In May 1988, in another decision that some analysts seemed to believe reflected a more conservative trend, the Court ruled 6-2 that police may, without a warrant, search through trash that people leave outside their homes to be collected. Rehnquist voted with the bulk of the Justices in City of Boerne v. Flores and later referred to the decision as a model for requiring Congress to give way to the Court in regards to the interpretation of the Equal Protection Clause and including the Fourteenth Amendment, in several cases. Boerne stated that any statute that Congress used to enforce the guarantees of the Amendment had to demonstrate both proportionality and a congruence between the injury that was deterred or fixed and the means adopted to this end. Rehnquist’s Court proportionality and congruence theory took the place of the ratchet theory that had controversially been advanced in Katzenbach v. Morgan. Due to the ratchet theory, Congress was able to ratchet up civil rights beyond the Court’s recognition, but Congress would be unable to ratchet down the rights the courts already recognized. The Rehnquist Court’s congruence and proportionally theory made it less difficult to revive older models th at prevented Congress from over extending itself in enforcing equal protection of the laws. But, as always, the decisions varied; the Court in 1990 struck down the federal law that sought to ban flag-burning. And in 1991, it invalidated New York’s â€Å"Son of Sam† law, which had barred criminals from earning money from books about their crimes; the Court said the state law violated the First Amendment’s provisions of free press and free speech. In 1999, Rehnquist was the second Justice to oversee a presidential impeachment trial, against President Clinton. Rehnquist, in 2000, delivered a consenting decision in Bush v. Gore, the case that ended the election controversy in Florida. He agreed with four justices in the case that the Equal Protection Clause did not allow a standard less manual recount of votes as was ordered by the Florida Supreme Court. Conclusion In conclusion, the Rehnquist Court moved more cautiously in the 1970s and thereafter and narrowed the sweep of some of the Warren Court’s decisions, particularly in the areas of criminal justice and pornography. The Supreme Court might do so even more dramatically in the future. The doctrines of equality, freedom, and respect for human dignity laid down in the numerous decisions of the Warren Court cannot be warped back to their original dimensions. Generations hence it may well appear that what is supposedly the most conservative of American political institutions, the Supreme Court, was the institution that did the most to help the nation adjust to the needs and demands of a free society. As this paper demonstrates, the decisions of the Supreme Court are often unpredictable, and the Court’s direction is not always easily categorized. Although by the year 2000 the Court’s conservative bloc was often a dominant force, it did not always prevail. References Herrman, J. (2009). Theres a Fine LineAdolescent Dating Violence and Prevention. Pediatric Nursing, 164-170.

Conclusion of Midterm :: essays research papers

Error Analysis   Ã‚  Ã‚  Ã‚  Ã‚  In such a big lab, so many errors can occur and even one little one can ruin everything. One could have missed a procedure or done a procedure incorrectly. Another could have been using the incorrect amount of liquid or sludge. Someone could have lost a test-tube or labeled it wrong causing the results to be mixed. Using too much water in the solubility tests or not getting all measurements almost exactly accurate could be two sources of error. One big mistake could be creating a vacuum in the fractional Distillation part of the lab. One careless mistake could have been doing the calculations incorrectly. Conclusion   Ã‚  Ã‚  Ã‚  Ã‚  The sludge lab is a long and complicated lab. So much can go wrong so easily. So we had to be very careful when doing this lab. It was basically a recap of all our previous labs done this year. First we used the Fractional Distillation. Then we used the Solubility lab and the density labs. Only new part was identifying the metal, but that wasn't very hard. So it was good that we reviewed our lab reports. This way we knew what procedures to take and what mistakes not to make. So it seems like we did everything right because the results make sense.   Ã‚  Ã‚  Ã‚  Ã‚  To get and identify Fraction I, we had to do a lot. First we filtered the sludge. Then we took 25cm3 of the sludge and separated it into three parts. So we took the first fraction and experimented on it. We purified it and determined its boiling point, density and solubility. We also had to see if it had an odor and whether it was flammable or not. After doing all this we realized that this Fraction was Isopropanol Alcohol. We came to this conclusion by looking at our data for the solubility, density, odor, boiling point, and flammability.   Ã‚  Ã‚  Ã‚  Ã‚  To get and identify Fraction III, we had to continue from Fraction I. After getting the first fraction we had to change tubes and et 2 more fractions. We threw away the 2nd because it was just a leftover mix. We took the third fraction and experimented on it. We purified it and determined its boiling point, density and solubility. We also had to see if it had an odor and whether it was flammable or not. After doing all this we realized that this Fraction was Water. We came to this conclusion by looking at our data for the solubility, density, odor, boiling point, and flammability.   Ã‚  Ã‚  Ã‚  Ã‚  Determining the soluble solid was hard and a rigorous procedure.

Applying Ethics in the Armed Forces

In Rob Reiner’s 1992 film, â€Å"A Few Good Men†, two ethical approaches to life are illustrated most profoundly in four main characters.   Protagonist Lieutenant Daniel Kaffee, played by Tom Cruise, is in direct moral contrast to the antagonist of the film, Colonel Nathan Jessep, played by Jack Nicholson.   Kaffee effectively illustrates the importance of using the ethical framework of the common good approach while Jessep shows the flaws inherent in the virtue approach.The approach taken by Kaffee ensures that society is seamless in morality and that the Marines are not a group that is outside of either the law or common morality.   Jessep, however, shows that virtues or ideals that commanders demand of subordinates in the military can contradict the virtues of the common person and the common good.The remaining important two characters are the conflicted and court-martialed Lance Corporal Harold W. Dawson and Private Lowden Downey.   These are Marines that re sted their trust in their commander and must later learn to trust their attorney Kaffee and the integrity of military law.Dawson and Downey first come to the attention of Lieutenant Kaffee when the two are accused of causing the death of Private William Santiago.   It was later discovered that the two were either directly or indirectly encouraged to initiate a â€Å"Code Red’, which is a form of Marine self-policing, where weaker member were scared via different methods to become stronger, better Marines.The men have allegedly stuffed a rag into the mouth of Private Santiago, resulting in his death.   It becomes clear that the men will not speak of the crime in question, due to the honor code of Marines.It later becomes clear, as well, that Gitmo is viewed as a very different place with very different values.   When the Marine Commander Jessep is accused of his role of creating such an immoral climate that results in a man’s death, he states that he has â€Å"a greater responsibility than [you] can possibly fathom†.Learning that the military culture may have a separate moral culture surrounded with different ethical mores, the question becomes are Dawson and Downey are morally blameworthy?Since Colonel Jessep appears to utilize the virtue approach while simultaneously instilling an atmosphere of silence and brotherhood in his Marines at Gitmo, a small island apart from the rest of the world, to not follow his instructions would be unthinkable.   To Jessep, his Marines are men above reproach and question and given the task of protecting their fellow soldiers in a place that is always in danger of outside harm.   The virtue approach that he instills in men like Dawson and Downey are to the effect that â€Å"a person who has developed virtues will be naturally disposed to act in ways consistent with moral principles† (Velasquez, et al, 1996).These virtues and principles were the cornerstone of the survival of the two men in question, they believed that there was no possible to way to refute or refuse any orders given by their virtuous commander.   The virtues practiced and preached by Jessep were courage, strength, silence, and submission.Above all else these men learned, also, that they must always submit to their superiors in all they were asked to do.   For this reason, these men are not entirely blameworthy, as if they would have refused direct orders, they would have lost their virtue and in essence the very fabric of their lives.   The moral questions of virtue and common good become the fabric of the court hearing.Lieutenant Kaffee concerns himself with the ethical issue of the common good approach to ethics and instills the positive points of virtue theory by displaying compassion, fairness, and integrity.   The Common Good approach essentially deals with an idea that individual good is equated and ensured with public good and that individual, honorable traits should be shared as a comm unity in a healthy fashion.In this way, goodness, is not good if it is not shared.   It can be said, then, that in order to recognize good to share it, we must also be able to recognize bad or â€Å"evil†, in order to know how to counter it in a world of free will.â€Å"Appeals to the common good urge us to view ourselves as members of the same community, reflecting on broad questions concerning the kind of society we want to become and how we are to achieve that society† (Velasquez, et al, 1996).In this way Kaffee shows that Gitmo is a part of the larger world and that justice should be served to ensure that the military and the rest of the world can achieve fairness.   Jessep is shown as culpable in his actions and Kaffee assures Dawson that a person does not need to have a patch on his or her arm to have honor.This phrase means so much to the Marine, who was simply following orders in a misguided mission.   Had he not been subjected to the immorality of his co mmander, he would have been a good soldier.   But, he cannot return to his duties and must then show honor in his daily life, hopefully Kaffee has illustrated this honor and the uselessness of rank, faulty reasoning, and a simple patch on one’s arm that does not assume morality.In closing, â€Å"A Few Good Men† in an excellent film to analyze in context of morals and ethical approaches.   The two illustrated approaches of virtue and the common good can be seen as a recurring theme throughout the work.   The actors all display their ideas and ideals of morality and a code of honor.The misguided and displaced ethical approaches and results are magnified to display their potential risks while the important and useful ethical approaches are displayed in memorable fashion with justice being more than a part of a court proceeding, it becomes a part of a new honor code for all affected.ReferencesSchickel, Richard.   (December 14th, 1992).   â€Å"Close-Order Moral Drill†.  Ã‚   Time.  Ã‚  Ã‚   70.Velasquez, M., Andre, C., Shanks, T, Meyer, S. J. & Meyer M.   (Winter, 1996).  Ã‚  Ã‚   â€Å"Thinking Ethically:   A Framework for Moral Decision Making† in Issues in Ethics.   2-5.

The Reporting of Human Resource Accounting

CHAPTER ONE INTRODUCTION 1. 1 BACKGROUND OF THE STUDY Indeed, accountancy profession is a profession that encompasses other profession and that is why accounting has usually been thought of as highly technical field that can only be understood by the professionals (chartered accountants). Also, it has often been called ‘the language of business. Even, people in the business world owners, managers, banks, stockbrokers, investors, human resource managers, lawyers, to mention a few all uses accounting terms and concepts to describe their resources and the activity of every business they engage in whether large or small. While, according to the dictionary of management by Daniel Hartzell ‘Human Resource Accounting’ is defined as a concept that views the employees of an organization as capital assets like plant and equipment. It is important to say here that human resources accounting involves measuring the costs incurred by business organizations and other entities to recruit, train, develop and maintain their human capital. It also involves measuring the economic value of people to organization. These people consist of suppliers, customers and the society as a whole. It is not an overstatement to say that we are living in an era of accounting and as such human resources accounting must not be seen as an ordinary concept in the field of accounting but as a current trend that has come to stay. However, in this study, focus shall be placed on human resources accounting and how it will be reported in the financial statement, which also mean the capitalization of human resources as an asset which can be amortized. Although, the worth of human resources may be fairly difficult to quantify, hence there is no reason to value them at zero or not to record them in the financial statement as an asset. If the change in the value of money are accounted for, depreciation and maintenance of plants and machinery are also accounted for different adjustments are made in material, machinery and other asset therefore, inclusion in the financial statement, human aspect which form about seventy-five percent or more of the total asset that makes up the production in the organizations are only accounted for in terms of salary and wages. Leaving such information out of financial statement presents only twenty-five or less percentage of the cost of production. Based on this, such financial statement does not provide total information for decision making. 1. 2 STATEMENT OF* THE* PROBLEM While the concept ‘human resources accounting’ is intuitively attractive, the significant problems it poses will not be swept under the carpet. For the purpose of this research the following problems are areas we to proffer solution to: The possible ways of measuring the monetary worth of an individual in an organization. The treatment of human resources as an asset to be amortized overtime in the financial statement. How to estimate the effect of managerial action to employee moral, productivity and turnover. To furnish a more complete and realistic picture of the organization financial strength and the total contribution to the economy in general. {text:list-item} The aim of this study is to evaluate human resources accounting and treatment in financial statement. It is pertinent to note that objectives are identifies into two divisions; the general or broad objectives and the specific objectives. Bearing in mind the problem this study hope to provide a solution to, the general objective is to achieve a creation of idea to be employed by a further researcher for the formulation of any technique, for the monetary value of human resources and the specific objectives is the preparation of a more complete financial statement given the monetary value. {text:list-item} Employees as individual are not usually accounted for rather the value of their output is accounted for and the rate of their pay in the nature of salaries and wages are accounted for. This study intend to classify employees as asset and give value to them accordingly and create ideas to aid the formulation of measure for treating them in the financial statement. {text:list-item} The limitations to the study include: INFRASTRUCTURAL FACILITIES: There is limited library and computer facilities which have gross effect on this research work. LIMITED FUND: The situations of the economy constitute problems to students as relating to raising funds. LIMITED TIME: Due to the nature of the school calendar, there is little or no time to carry out adequate research on the study being done. text:list-item} The followings are the research question to be considered: How can monetary values of employee’s service be established? Can this monetary value aid management in internal control? What are the possible effects of the monetary worth of employee’s services to the profitability of an organization? What impact would training and development of employees have on th e performance of an organization? {text:list-item} The hypotheses to be tested are stated below: H0: Most income statements are incomplete without adequate consideration and inclusion of the human resources element in the financial statement. H1: Most income statements are complete without adequate consideration and inclusion of the human resources in the financial statement. H0: There is need for capitalization and amortization of human resources like other fixed asset in the financial statement. {text:list-item} FINANCIAL STATEMENT: This are the accounting reports in respect of the economic activities of an enterprise, prepared periodically and usually at the end of every financial year. These statements form an integral part of the company’s annual report and accounts while their components are specified in both CAMA and the Statement of Accounting (SAS) No. . CAPITAL ASSETS: Assets including investments not held for sale, conversion or consumption in the normal course of business. Capital assets are certain types of assets that qualify for special treatment when gains and losses result from transactions involving the assets. AMORTIZATION: It is the writing off of assets, the lives of which are determined not by deterioration or obsolescence, but the expiry of the tenure of ownership. It is distinguished from depreciation in that there is generally no deterioration in the performance of the asset during its life. Amortization is for intangible asset. CAPITALIZATION: The term â€Å"capitalization† is derived from the word â€Å"capital†. Capitalization is the process of determining long term capital requirements of a business and obtaining capital for it from various sources of fund. HUMAN CAPITAL: That part of an organisation capital represented by the ability, experience and skill of its work force. It refers to the knowledge, education, training, skills and experience of a firm’s worker that have economic value to the organisation. {text:list-item} Access Bank Plc. was incorporated in 1989 as a private limited liability company with ownership residing with Nigerians and institutional investors. The Bank was subsequently listed on the Nigerian Stock Exchange in 1998. Access Bank Plc. is a full service corporate – commercial bank operating through a network of over branches and service outlets located in all major centres and cities across Nigeria, Gambia and Sierra Leone. Access Bank is recognized as Nigeria’s fastest growing bank in the fastest growing sector of the fastest growing African economy. Access Bank had consistently grown at a triple digit across key performance indicators since 2002; an unparallel performance in Nigeria and indeed in Africa. As a result, from a low ranking position in the Nigerian banking industry in 2002, the bank had risen significantly to rank amongst Nigeria’s top 10 banking groups. Access Bank had painstakingly built a formidable brand over the years in its continued drive towards becoming one of Nigeria’s leading financial institutions with the appointment of its current management team in 2002. Access Bank has successfully implemented a two-pronged growth strategy of both organic and inorganic growth with the objective of emerging as one of the top three banks in Nigeria within the next five years (2007-2012). THE POST CONSOLIDATION Access Bank Plc. was one of the first to successfully comply with the Central Bank of Nigeria’s banking consolidation policy through the acquisition of two Nigerian banks: Capital Bank International Plc. (formerly Commercial Bank Credit Lyonnaise Ltd) and Marina International Bank Ltd (formerly Allied Irish Bank). The three banks’ people, processes, systems and technology were fully integrated in a record time of 60 days. The Access Bank Plc. integration approach is now the model for integration in the banking industry. After the management and staff of the Bank, the Netherlands Development Finance Company (FMO) of the Netherlands is amongst a number of significant institutional investors in Access Bank Plc. stock, having invested US$15million in the bank by way of direct equity in 2005. This depicts the degree of confidence international investors have in the bank, its corporate governance and management strategies. The bank in 2007 conducted a phenomenally successful local and international public placements of common stock which has seen its shareholders’ funds grow by 560% to approximately N160billion. CHAPTER TWO LITERATURE REVIEW {text:list-item} The term ‘human resources accounting has been conceptualized to involve measuring the costs incurred by business organization and other entities to recruit, train, develop and maintain their human capital. But an overview of this research study shows that if researcher must discuss or research on human resources accounting, certain related terms such as human resources planning, human resources forecasting, human resources auditing, and human evaluation must be defined. {text:list-item} This involves having to employ the right number and the right kind of skill that result in the long run maximization of individual and organizational benefits. It also gives consideration to skill auditing within organization but additionally requires that human resources goals give attention to labour market condition in the environment of the organization. Human resources planning are the process of determining personnel requirements and the means of meeting those requirements in order to carry out the integrated plans of an organization. Human resources activities are important to individual, organization and national arenas in order to bring about the optimal utilization of human resources. Human resources planning involve projecting and forecasting the present personnel functions into the future. {text:list-item} This focuses on institutional adaptations resulting from external pressures and changes. This human resource forecasting is important because of various external pressure that affect resources forecast includes: Amount of production. Technological change. Supply and demand condition. {text:list-item} Auditing is an intensive, analytical and comparative process. Human resources auditing has to do with investigation into job analysis, recruiting, testing, interviewing, training, promotion and transfer personnel appraisal, labour relations, employee benefits and service, wages and salaries, administrative and personnel research. Computerized personnel system today uses human resources skill inventories. This inventory require a lot of data, which include personnel factors, education and training experiences, skill job experience and other additional information. It is obvious that it is an overstatement to say that the reporting of HRA information in external annual reports brings with it the question of its audit. Costs incurred in human resource are readily subject to verification by the auditor and thus present no new problems. Cost expirations on the other hand, if based on the theoretically sound assessment of future benefits remaining for the organization, present some problems for the auditor because human resource and behavior are highly complex. But, conventional accounting also uses estimates, assumptions, in many areas such as depreciation related to the future which could be as unpredictable and less accurate. The verification of value-based data for human resource in annual reports had represented a different and more substantial problem for the auditors. However, there had been found a growing interest in value-based human resource accounting at some time in the future could not be ignored. Flamholtz suggested that: â€Å"Human resource accounting will have an impact upon corporate financial reporting. In the future, corporations would have to report on their investments in human assets. At first this information will be reported in the chairman’s letter of corporate annual reports. The purpose will be to show management’s attention to building human assets. Some companies may choose to include this information in a statement of intangibles, and some will include it in proforma financial statements. Ultimately, however, it will be included in conventional statements as a generally accepted accounting practice† {text:list-item} Theoretically, human resources accounting had been explained from different analysis made by different authors. Conner (1991) in his theory titled â€Å"the resource theory† considered human resources in a more explicit way. This theory considered that the competitive position of a firm depends on its specific and not duplicated assets. The most specific (and not duplicated) asset that an enterprise has is its personnel. It takes advantage of their interdependent knowledge that would explain why some firms are more productive than others. With the same technology, a solid human resource team makes all the difference (Archel, 1995). Another interested theory is that of the two principles of â€Å"human resource cost† and â€Å"expenses recognition principle† Theoretically, the two principles of ‘human resources cost’ and ‘expenses recognition principle’ have been used to explain the treatment of human resource accounting in the financial statement. Accountants are known with human resource cost principle of treating human resource in the financial statement. They claimed to have accounted for human resource cost for a long time before the phrase ‘human resource accounting’ come into light. Generally, they have followed the practice of changing human resource cost, associated with production (e. g. direct labour) to inventories manufactures and changed all other human resource cost(wages and salaries) to operating expenses in the period incurred. This principle of accounting for human resource provides little insight into the recording of human resource cost but it does not show or identify human resource as an asset in the balance sheet. Strictly speaking, for the purpose of this research the accepted theory had been deeply rooted in different models of accounting for human resources as explained by Jawhar Lal (2003). {text:list-item} These two under-listed method of accounting for human resources will be critically examined and explained broadly for the purpose of this work. Human Resource Cost Accounting (HRCA), i. e. , cost-based human resource accounting. Human Resource, Value Accounting (HRVA), i. e. , value-based human resource accounting. {text:list-item} HRCA may be defined as the measurement and reporting of the costs incurred to acquire, develop and replace human resources. Generally speaking, (i) historical costs and (ii) replacement costs are recognized in human resource cost accounting model. Historical Cost (Acquisition Cost) of Human Resources This model known as the historic cost model focuses upon the amount of expense incurred during the defined period on formal training and orientation, familiarization and on-the-job training, and formal development and experience. This is the amount of the additional development and experience. This is the amount of the additional investment in the acquisition and development of human resources. Acquisition cost involve costs of recruiting, selecting and hiring people to meet an organisation’s present and future human resource needs. These costs refer to the sacrifices that must be incurred to ‘acquire’ a new employee. Development costs refers to the sacrifice (costs) that must be incurred to train a person either to provide the level of performance normally from an individual in a given position or to enhance the individual’s technical, administrative, or interpersonal skills. Development costs include these components: Orientation, off-the-job training, and on-the-job training. These three components generally include costs such as salaries, tuition, materials, travel and consulting fees. Orientation costs are costs associated with formal orientation of employees. The orientation makes employees familiar with personnel policies, company products, facilities and so on. Orientation costs are generally a mixture of salaries and materials. The salaries are for both trainer and trainee. Materials may include brochures describing firm policies, history, etc. Off-the-job training costs are incurred in formal training not directly connected with actual job performance. Formal training programmes may be advance technical training, or management development programmes. Off-the-job training costs may include salaries, tuition, meals, travel, facilities costs, consulting fees, and materials. Salaries include the cost of trainers as well as trainees. On-the-job training costs are incurred in training an individual on the job itself rather than in formal training programmes. On-the-job training is used not only for production workers but also for professionals such as accountants, engineers, and management trainees. The cost associated with on-the-job training include labour and materials costs. Accounting for Historical Costs Historical costs of human resources are treated in the same way as expenditure on fixed assets such as buildings, plant and machinery. Upon capitalization, the amount of investment in human resources will appear as assets on an enterprise’s balance sheet, and be written off over the expected employment life of the particular group of human resources employed in the enterprise. This allotting process involves recording of investments in human resources through a capitalization process; recording of routine (periodic) expectations of such capitalized items using a suitable mortization procedure; recording of losses on account of special expirations which may result from obsolescence of investments in certain skills or knowledge capabilities or the turnover of personnel; and dynamics and conditions of human resources in terms of investments therein. The determination of a suitable amortization procedure to recognize expirations in human resource is difficult and highly involved. Human resource investments are of a highly varied nature with different periods of long term benefits. Further, uncertainties of conditions of employees, and even mortality add to the complication of deciding upon appropriate amortization practice. Ideally, expiration of human resource investments should be determined by association with those periods during which the benefits of the investments are experienced by the entity. As example, cost of recruiting should be amortized over a period of time which is the best estimate of the remaining time that the individual will remain actively in the employment of the company. Training costs should be amortized over a period which is the best estimate of the time during which the benefits for such training will be enjoyed by the firm. Special training to develop a skill which will be utilized for a short time period should be amortized rapidly. General executive training on the other hand, may be amortized over the estimated remaining tenure of the recipient with the company. Amortization time periods should never extend beyond the date of the recipient’s tenure with the organization. TABLE 2. 1 ABC COMPANY LTD. BALANCE SHEET AS AT 31ST DECEMBER, 2003 FINANCED BY: TABLE 2. 2 ABC COMPANY LTD INCOME STATEMENT FOR THE YEAR ENDED 31ST DECEMBER, 2008. In summary, while cost-based HRA system, are rather severely restricted in the range of their usefulness, within that range, they can be quite worthwhile. Furthermore, the applicability of existing accounting techniques and the familiarity of managers with these techniques suggest that such an approach can save as a logical starting point. Replacement Costs of Human Resources. Replacement costs as used here refers to the estimated costs that would have to be incurred by an enterprise in order to replace its existing human resources with others of similar ability and experience. The determination of replacement cost involves estimates and these estimates are concerned with the present rather than with the future. Flamhottz has developed a concept (model) for calculation of ‘positional replacement cost’ which he defines as the sacrifice that would have to be incurred today to replace a person occupying a specified position with a substitute capable of rendering equivalent services in the given position. There are three basic elements of positional replacement costs; acquisition costs, development cost and separation costs. Acquisition and development costs still remain as discussed under historical cost of accounting for human resources. Separation costs are or incurred as a result of an employee leaving a position or job in an organization. It includes three basic components: separation compensation costs, differential pre-separation performance cost, and vacant position cost. These costs are generally capitalized and amortized, but should be expensed when the employee ceases to be employed. Separation compensation cost is the cost of severance pay, of any personnel. It may range from very little or no cost to a person’s salary for one year, and perhaps more. Differential pre-separation performance cost is the cost of lost productivity prior to the separation of an individual from an organization. There is a tendency for performance to decrease prior to separation. In many cases, differential pre-separation performance costs may be difficult to measure for specified individuals but may be measurable from historical performance records by personnel classifications. Vacant position costs may be incurred during a period when a search is made for replacement in other positions, holders of the latter may perform less effectively when the former is vacant. This difference in performance or less performance can be termed a cost of vacant position. Evaluation In a sense, replacement costs can be viewed as representing a bridge between historical cost approaches and economic value approach. The justification for considering replacement cost as a form of economic value is the proposition that the value to an organization of an individual’s services is reflected by the amount by the amount that the organization would have to pay to replace their services. Furthermore, replacement costs are present-oriented rather than future-oriented. Thus, it is not necessary to make estimates about the future in order to determine human resources values in terms of replacement costs. There are several difficulties associated with the use of replacement costs for human resource accounting. Replacement costs are often irrelevant since management may be either unwilling or unable to replace a particular individual with another person of similar abilities. {text:list-item} Jawhar Lal (2003) explained in his study that human resource value accounting is an attempt to measure the value of human resources on the basis of benefits accruing to an organization. The amounts of such benefits are derived from the value differentials attributable to investment in human resources. Many authors have developed models for calculating (estimating) the value of human resources of an organization. These models have some similarities, but they do vary somewhat in both concept and in choice of surrogates. For this research work to proffer solution to the question of how human resources of an organization can be valued. Some models have been used thus; Hermanson’s model Hermanson discussed two possible valuation methods, both of which are based on economic concepts of value: (a) The Unpurchased Goodwill method, and (b) the Adjusted Present Value Method. Unpurchased Goodwill Method: Hermanson had suggested that the value of human resources of an organization may be assessed by capitalizing earning in excess of normal earnings for the industry or group of companies of which the firm is a part. This approach is historical cost-based and thus of limited use as a predictor. Also, if it is based on projected earnings rates it could be no better. This approach implicitly assumes a zero value for all human resources in competitive situations since a positive value of human resources requires above average earnings. Adjusted Present Value Method: This method requires four steps in order to arrive at the value of the human assets. Estimate annual wage and salary payments for five years into the future. Calculate the present value of estimated wage and salary payments by applying a discount factor equal to the normal rate of return in the economy. Calculate an average efficiency ratio based on the previous five years performance. This ratio is found by dividing the actual earnings of the firm by normal earnings for each year and averaging the result. (In making this calculation, the latter years receive more weight than the earlier years). Multiply the present value of the future wage and salary payments by the average efficiently ratio. The resulting figure represents the estimated present value of the human resources. This method also is related to Hermanson’s unpurchased goodwill model and shares the same limitations. In addition, it may be criticized on the ground that future compensation is as much as measure of the liability of the firm employing the individual as it is an asset. The concept, therefore may relate to the human capital represented in individuals employed by the firm. Both of Hermanson’s models were suggested as possibilities for external reporting and management uses. Giles and Robinson’s Model Giles and Robinson suggested that the valuation of human assets should be made in term analogous to the valuation of a business on a going concern basis. The price earning ratio, which relates market capitalization to the latest reported earning figure is their point of departure. Based on a sample of companies with similar characteristics, an average P/E multiple is computed and then adjusted to arrive at the multiple applicable to the firm by providing for (deducting from the average multiplier) the factors that are not related to human assets. The multiple is further adjusted as needed, for application to different job categories. Gross remuneration of employees and all additional expenditures related to investments in human resources are capitalized by using the appropriate multipliers. The technique provides the basic data necessary for periodic human asset, balance sheets and income statements and human asset profiles and projections of the firm. The multiplier represents a number of year’s capitalization of the annual human resource figure. The total human asset value in a firm is either equal to or less than the amount of ‘goodwill’ (the going concern value less net non-human assets). Due allowance is made for other goodwill elements, such as product loyalty, patented processes and the value of long term contracts. The net change in human assets value in a period is computed as the difference between capitalized amounts which enhance the value and capitalized provisions for dimension or amortization of value. Lev and Schwartz’s model This model determines present value of future earnings of a person in an organization. The model developed by Lev and Schwartz to estimate human capital value of a person (y years old) is: EVr*=t=rTPr? t+1)i=rtIi1+rt-r Where: EVr*= the human capital value of a person ‘r’ years old. I(i)= the person’s annual earning until retirement and this series is represented graphically by the earnings profile. r= a discount rate specific to the person. T= retirement age. Pr(t)= Conditional probability of a person of age ‘r’ dying in year ‘t’. I*t=fI? (t), t=r,.. ,T This model provides a reasona ble measure of human capital which could be used for aggregation in macro statistics and in assessing the dynamics and mobility of such capital. While the authors indicate that capital values determined by use of this model will provide financial statement uses with valuable information about changes in an organization’s labour force, the model’s use for practical decisions of managers of organizations or of potential investors in organization is obscure or even non-existent. Organ’s Model Organ attempted to measure in monetary terms the net present values of some of the human resources of a certified public accounting firm. A human resource value model was utilized in the research which is exhibited in table 2. Table 2. 3 Major Determinants of human Resource value Model Source: Pekin Organ, â€Å"Application of a Human Resource Value Model: A field Study†, Accounting, Organisation and Society, Vol. 1 No. 2-3, 1976, p. 198. According to Organ, there are seven major determinants of the values of human resources. Monetary value benefits potential. The individual performance index. Efficiency index. S tandard work index. Maintenance costs (salaries or wages) Start-up costs (recruiting, initial training). Training and development costs. Probability of continued employment. Probability of survival. Organ believes that has model generates data that are amiable for use in an on-going manner like a performance evaluation system or a human resource value accounting system. Organ’s model has two major limitations which are, one, the ‘total’ value of the individual is not considered, and two, the model is limited for use in professional service organizations. Jaggi and Lau’s Model In human resource valuation, there is a problem of forecasting the expected promotion chances and tenure of employees on an individual basis. To overcome this problem, Jaggi and Lau refer to ‘group’ as homogenous group of employees who may not be necessarily working in the same department. They claim that on a group basis it is possible to know the percentage of people (in a particular group or department) likely to get promotions or to leave the organization before death or retirement in future years. This model assumes that the pattern of employees’ movement generally remains constant over time. Therefore, predictions based on historical data for one period can be used for future periods also. The authors assert that with some intuitive justification, the model is likely to provide greater accuracy and reliability. Morse’s Model According to Morse in his study â€Å"A Note on the Relationship between Human Assets and Human Capital†, (1973), the following equation was implicating attributed to Flamholtz: A=i=1NrTIi(t)1+rt-r+rTX(t)1+rt-rdt Equation 1 Where A= human assets value to a formal organization; N= Number of individuals currently employed by the organizations; R= current time; T= highest time at which an individual currently employed leaves the organization; Ii(t)= net value of the services rendered by individual ‘i’ at time ‘t’ to the organization, Ii(t)=Gi(t)-Ei(t). Gi(t)= gross value of services rendered by individual ‘i’ at time ‘t’ to the organization. Ei(t)= all direct and indirect compensations given to individual ‘i’ at time ‘t’ by the organization. X(t)= value of services of all individuals presently employed working together in excess of value of their individual ervices at time ‘t’ and r= time value of money. Morse then converts the Lev and Schwartz equation, which determines an individual’s human capital value under certainty to: C=i=1NrTEi(t)1+rt-rdt Equation 2 Which according to Morse, is the total â€Å"human capital employed in an organization† as it exists at time ‘r’. Now, by expand equation 1 and re-arranging it, the writ e says: Equation 3 says that the present value (PV) of human assets equals Total Present value (TPV) of human resources less present value of payment to the employeed. Flamholtz Model Flamholtz in 1971 proposed a normative human resources valuation model which would trace the movement of an employee through organizational positions or service state where the employee â€Å"†¦ is expected to render in specific quantity of service to the organization during a specified time period. The probability of the individual occupying this service state is needed so that expected service from the individual can be derived using: ES=i=1NSiP(Si) Equation 4 Where: Si= services that are required from the individual in a service state; and PSi= probability that the individual will occupy the particular service state. The service than an individual renders determines his or her value to the organization and Flamholtz stated that the monetary equivalent of this services can be represented in two ways. The first way is to determine the quantity and price of the services and use their product as the monetary equivalent, and the second expected services are discounted so that their present value can be determined. Also, in 1972, Flamholtz offers a model for calculating an individual’s value to an organization using the present value of the set of future services the employee is expected to remain in the organization. This model is conceptually sound from a benefit point of view and would have left little room for improvement. During this same year, Flamholtz proposed ‘expected realizable value’ as a form of economic valuation of the human resources. His model postulates that an individual is not valuable to an organization in the abstract. An individual is valuable to an organization in relation to the personal attributes and the characteristics of the organization. On a conceptual and theoretical level, Flamholtz has tried to identify the key variables that determine an individual’s value to an organization and the inter-relationships of such variables; he recognizes that these determinants may land themselves to monetary or non-monetary indicators. The model developed by Flamholtz is shown in table 2. 4 below. TABLE 2. 4 Revised Model of the determinants of an Individual’s value to a formal organization Source: Eric Flamholtz, â€Å"Human Resource Accounting: A Review of Theory and Research,† unpublished paper presented to the Organization Behaviour Division at the 32nd Annual Meeting of the Academy of management, Minneapolis, Minn. , August 15, 1972, p. 10. Flamholtz suggested appropriately that this â€Å"model is suggested as a first step toward the development of a theory†. It is conceptual theoretical and perhaps only impressionist. One of the most difficult aspects of calculating realizable value is the estimation of the value of a person’s expected services. Flamholtz had proposed that it might be desirable to use a substitute measure of surrogate, for this purpose. Examples of possible surrogate measures include compensation, replacement cost and performance indexes. In an experiment designed to test the appropriateness of using these measures. Flamholtz found that all three may be relevant for this purpose. He suggested that the choice of the ‘best’ measure in a specific situation will depend on the intended use of the data. To summarize, according to Flamholtz, the measurement of human resource value of an individual to an organization requires the following: Estimate the total time period during which the individual can be expected to render services to the organization. Identify the various service states (i. e. position) that the individual may occupy during the time he is with the organization. Measure the value derived by the organization if the individual occupies the various service states for the specified time periods. Estimate the probability that the individual will, in fact, occupy each state at the specified future time. Akintoye’s Model Akintoye in 2006 proposed the ‘Net Benefit Model’ to human resources accounting in service organization as an expectation of the earlier conventioned models of Morse (1973), Lev and Schwartz (1971, 1972) and Flamholtz (1971, 1972). In this type of an organization, the estimate of benefit generation is a relatively simple exercise. Each employee has a stipulated and readily ascertainable billing rate and amount of time (measured in billable hours) over his or her estimated useful life with the organization. That may be other types of organizations that give themselves to parallel measurement like doctors and lawyers. The Net Benefit Model as proposed by Akintoye is hereby stated in it most general form below, thereafter the suggested constructs are explained and illustrated in details. Cij=j=1nk=tE-t1(1+r)c? Bqj Equation 1 Where *Figure 1: Adjusted Net Value of Human Resource for the *Organization The equation 1 above tells us that the total adjusted net present human resources benefit of a services organization is equal to the summation, discounted certainty-equivalent net benefits of the employees in the organization as shown in the above figure. The major thrust of this work is to conceptualise the determinations of certainty-equivalent net benefit streams generated by each individual, after all, the individual are determined, the total human resources benefit for the organization can be resolved by relatively simple procedures of discounting aggregation (Equation 1 and figure 1 refer). {draw:frame} Figure 2: Major Determinants of Certainty Equivalent Net Benefits {draw:frame} Empirically, analysis made by Walker (1995) with the aid of diagram showed that Human Resources Accounting in services organization seeks to make managers more of the importance of people as valuable resources and to hold managers more accountable for these resources. It is also an excellent way to assess management performance in this use of human resources. In this way it is expected to encourage better planning for human resources and better decisions wherever they involve people. Lastly, Human Resources Accounting in service organization is an excellent way to encourage managers to take a long-run outlook towards the value of people, rather than a short-run, quick-profit outlook that ignores human resources. Figure 3 Source: James W. Walker (1995), Grolier Library Adams (1965) stated that an individual who is involved in an exchange relationship, such as exchanging services for pay in a gainful employment situation, will perceive his or her inputs in more than monetary terms. The perceived input include effort, education, experience, skill, seniority and job status. Inputs are considered relevant only if they are perceived as inputs by individual contributor. On the other side of the exchange relationship is what the individual perceives he or she is deriving from the job-outputs. These are categorized in terms of their recognition and relevance and include salary, prerequisite, prestige and personal fulfillment. The individual will make comparisons of his or her output-input ratio with the situations of others whom he or she considers equal, in an all round sense. The purpose of this comparison is for the individual to determine whether the ratio of his or her output to input is fair. In making this comparison, the individual has in mind another specific individual whom Adam calls the individual’s ‘referent’. When the normative expectation of the individual in this comparison is violated to that of his or her output-input ratio as perceived is not equal to that of his or her referent (peer), then a feeling of in equity may result. Note that in this definition of inequity, the absolute level of outputs and inputs for the individual and his or her referent is irrelevant. What determines the equity of this output-input comparison is the individual’s perception of what he or she is giving and receiving as well as what he or she perceives the referent is giving and receiving. The relationship may occur when the individual and his or her referent are in a direct exchange relationship with a third party. {draw:frame} Symbolically, inequity exists when: Where: Oi=Output of the individual. Similarly, the individual will perceive a condition of equity when: The relationship of â€Å"equity theory† to the individual’s perceived rewards and peer’s perceived reward is that when the balance of ratio of these indices is disturbed, this will affect the individual’s internal satisfaction. Also it should be clear from Adam’s model that a feeling of inequity may exist when the individual perceives his or her ratio of output as greater or less than his or her referent’s ratio. This indicates that the model is realistic and not unidirectional. CHAPTER THREE RESEARCH METHODOLOGY 3. 0 INTRODUCTION This chapter covers the method used in the collection and generation of data in carrying out this study. It deals with the basic methods, sources of data and procedures used in gathering and analyzing of data and the problem s encountered in collecting the information required for the research. 3. 1 RESEARCH DESIGN Research design means the structuring of investigation aimed at identifying variables and their relationship to one another. It is used for the purpose of obtaining data to enable researcher test hypothesis and answer research questions. In an attempt to properly carryout this research, the researcher has obtained materials from both primary and secondary data. PRIMARY DATA: Primary data is information obtained for particular purpose/problems under consideration. According to Anyanwu (1994), it is first hand â€Å"tailor made† information be it personal, by a phone and by use of questionnaire administration. This research work employed the use of closed ended questionnaires administration as its sources of primary data in order to get the business opinion on the numerous questions to be asked. SECONDARY DATA: Is information assembled for some other purpose which the researcher finds relevance to his own research and incorporates these into his own work. Sources of secondary data used in this research includes articles in journal, textbooks, post written project work, newspaper articles, Access bank Annual Financial Report. 3. 2 RESEARCH POPULATION/POPULATION SIZE . 3 SAMPLING PROCEDURES However, due to some constraints like money, time, human and material resources and other facilities; the use of the entire research population is not only difficult but not feasible. Hence, there is need for the use of a subset of the entire population. Based on this fact, the use of judgemental/non-probability sampling is employed in choosing the sample size. Sampling according to Anyanwu (1994) is a pr ocess of selecting a proportion of the population for the purpose of generalizing the result from he sample about the population itself, the target population and any other population having the same characteristics. The researcher has some element of control because in non random sampling process, the researcher selects his sample on the basis of his own knowledge of the population its elements and the nature of the researcher aim. 3. 4 SAMPLE PLAN The study employed the use of primary data through questionnaire sampled among the employees of Access Bank Plc. , service industries and professionals. A total of fifty questionnaires were administered and these questionnaires were distributed to the selected sample size. At the end, 40 completed questionnaires were personally retrieved. Thereafter, the completed questionnaire were tested for validity 3. 5 DATA ANALYSIS Based on the nature of the study, analysis has been limited to the use of Chi-Square (? 2). Data analysis contains the statistical calculations performed with the raw data collected to provide answer to the questions initiated in the research. Chi-Square (? 2) is defined as the â€Å"sum of the ratio of difference between the square of observed and expected frequencies† (Hoel Paul, 2005). It is a measure of significances and is important in hypothesis testing especially in the type of research where only people who are among the managerial staff of the institution are required to fill the questionnaires to compute the Chi-Square, we find the difference between the sum of square of the observed and expected frequencies and divide whatever is gotten by the expected frequencies. Mathematically, the Chi-Square can be expressed thus, is given as: ? 2=O-E2E O is the observed frequency. E is the expected frequency. ? is the symbol of summation If the value of the observed value is greater than the expected value, the Chi-Square will largely indicate a poor experimental agreement, if the observed value and the expected value perfectly agree with one another; the value of the Chi-Square will be zero. Indicating an excellent or perfect experimental agreement, however, the value of the Chi-Square can never be zero Taylor (1977). The degree of freedom (df) is another important feature of the Chi-Square distribution. Its computational formula is given as: df=(r-1)(c-1) The decision rule is that if the computed value of Chi-Square is greater than tabulated critical value (? ). The null hypothesis is rejected as the state of significant. If the test is less than the critical value, the null hypothesis is retained (Murray 1977). A Chi-Square test is always a one tailed test. The level of the significance is 0. 05 or 5% which will be given in the Chi-Square table. 3. 6 RESTATEMENT OF RESEARCH QUESTIONS Most income statements are inc omplete without adequate consideration and inclusion of human resources element in the financial statement. The following are the research questions: How can the monetary value of employee service be established? Can these monetary values aid the management in internal control problem? What are the possible effects of the monetary worth of employee service to the profitability of an organization? What impact would the development of employee have on the general performance of an organization? 3. 7 RESTATEMENT OF RESEARCH HYPOTHESES Hypotheses set to be tested are stated below: H0: There is need for capitalization and amortization of human resources like fixed assets in financial statement. H1: There is no need for capitalization and amortization of human resources like fixed assets in financial statement. . 8 LIMITATION OF THE STUDY Factors limiting the scope of the study are as follows: TIME: The research is expected to merge school activities as a student with gathering data for this study. Also, the staffers of Access Bank Plc have to combine their daily work with attending to the researcher using their leisure time. DISCLOSURE OF HUMAN RESOURCE ACCOUNTING INFORMATION: Company had not made any serious attempt to provide HRA information in their published annual reports and is an area which is not yet fully developed. Further to attach quantitative values to them. The report is limited to use of questionnaire to gathered relevant data. Inspite of these limitations, this investigation will yield beneficial results and the limitations of this study will not have any significant effect on the research result. CHAPTER FOUR PRESENTATION AND ANALYSIS OF DATA {text:list-item} This chapter presents and analysis the data collected from Access Bank, First Bank Plc and United Africa Company (UAC). This is done on other to find out the possibly of human resource accounting. Through this analysis, the hypothesis set forth is either validated or nullified. The hypothesis states that most income statement are incomplete without adequate consideration and inclusion of monetary value of human resource element in the financial statement, and there is need for capitalization and amortization of human resources like other fixed asset in the financial statements. The findings present in this research are based on the response on the model of data selection supporting or negating the hypothesis. SUMMAR Y OF THE QUESTIONNAIRE DISTRIBUTED AND RESPONES COLLECTED The table shows that out of 30 questionnaire representing 42. % of the total distribution which were administered to Access Bank 27 or 38. 6% were returned, leaving a shortfall of 4. 3%. 20 questionnaire representing 28. 6% of the total distribution were administered to First Bank, of this questionnaire 19 representing 27. 1% were returned leaving a shortfall of 1. 4% while 20 questionnaires representing total distribution were administered to UAC, 18 representing 25. 7% were returned but 2 which is 2. 9% of the questionnaire were not returned. It should be noted that all returned questionnaire were used in this research based on the responses to the question. The researcher decides to select questions closely related to the hypothesis for the testing of the hypothesis. {text:list-item} Earlier in this research, it has been show that different schools of thought exist in respect of human resources accounting. In order to ascertain possibility of human accounting the analysis of all the questions will have to be used {draw:frame} TABLE 4. 2: DISTRIBUTION OF RESPONDENTS BY EDUCATIONAL QUALIFICATION {draw:frame} TABLE 4. 3*: DISTRIBUTION OF RESPONDENTS BY *HOW LONG THEY HAVE BEEN IN THE ORGANIZATION {draw:frame} TABLE 4. *: DISTRIBUTION OF RESPONDENTS BY *MARITAL STATUS {draw:frame} TABLE 4. 5*: DISTRIBUTION OF RESPONDENTS BY *COMPANY THEY WORK {draw:frame} TABLE 4. 6*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"HAVE YOU HEARD ABOUT HUMAN RESOURCES ACCOUNTING? † {draw:frame} From the above, 64 respondents answered the question. 85. 9% have heard about human resource accounting, while 14. 1% said they have not heard about human resources. TABLE 4. 7*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK THAT THE SKILL OF EMPLOYEE CAN BE MEASURED IN MONETARY TERMS? † {draw:frame} Out of the 55 respondents who have agreed that they have heard about human resources accounting, 56 agreed to the fact that the employee skill can be measured in monetary terms, while 8 respondents said the skill cannot be measured in monetary terms. TABLE 4. 8*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK THIS SKILL *IS *TRUELY REFLECTED IN THE FINANCIAL STATEMENT OF AN ORGANIZATION? † {draw:frame} 48 out of the 64 respondents says that the skill is not truely reflected in the financial statement, while 16 said the skill is truely reflected in the financial statement. TABLE 4. *: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"ARE YOU SATISFIED WITH THE PRESENT METHOD WHEREBY HUMAN RESOURCES IS REFLECTED IN FORM OF SALARIES AND WAGES ONLY? † {draw:frame} In the above question 47 respondents replied that they were not satisfied with the present method whereby human resources is shown in form of wages and salaries. 17 respondents believed that it were to shown in form of wages and salaries *TABLE 4. *10*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU FEEL THAT HUMAN RESOURCES SHOULD BE CAPITALIZED AND AMORTIZED LIKE OTHER FIXED ASSETS? † {draw:frame} Out of the 64 respondents, 53 believe that human resources should be capitalized and amortized with other financial assets, while 11 respondents said human resources should not amortized and capitalized. TABLE 4. 11*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK MONETARY WORTH OF AN EMPLOYEE SKILL OR SERVICES CAN AFFECT THE PROFITABILITY OF AN ORGANIZATION? † {draw:frame} 58 i. e. 90. 6% were of the opinion that the monetary worth of an employee can affect the profitability of organization, while 9. 4% were of the view that such cannot affect the protability of the organization. TABLE 4. 12*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK THIS MONETARY VALUES OF HUMAN RESOURCES CAN THUS BE JUSTIFIED LIKE ANY OTHER ITEMS IN THE INCOME STATEMENT? † {draw:g} 54 respondents states that the monetary values of human resources can be justified like other items in the income statement, i. e. they can be treated and adjusted in the financial statement, while 10 respondents says otherwise. TABLE 4. 12*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK THAT HUMAN RESOURCES ACCOUNTING IS POSSIBLE? † {draw:frame} 82. % of the respondents felt that human resources accounting because in production we cannot do without human factor, while 17. 2% feel that human resources accounting is totally impossible. TABLE 4. 13*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK INCOME STATEMENT IS COMPLETED WITHOUT THE CAPITALIZATION ND AMORTIZATION OF HUMAN RESOURCES? † {draw:frame} 51 respondents believe that inco me statement is not completed without the capitalization and amortization of human resources, while 13 respondents believe that there is no need for the capitalization and amortization of human resources. TABLE 4. 14*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO YOU THINK INCOME STATEMENT IS COMPLETE WITHOUT ADEQUATE CONSIDERATION OF HUMAN RESOURCES? † {draw:frame} 55 respondents maintain and believe that human resource elements are not well handled in the financial statement which the make the income statement incomplete, while 9 respondents feels that the income statement is complete without the consideration of human resources. TABLE 4. 15*: DISTRIBUTION OF THE RESPONSE ON THE QUESTION â€Å"DO YOU BELIEVE THAT HUMAN RESOURCES ACCOUNTING WILL HAVE IMPACT UPON CORPORATE FINANCIAL REPORTING IN THE FUTURE? † {draw:frame} 7. 8% of the respondents believe that human resources will have no impact upon corporate financial reporting in the future. 92. 2% felt that human resources accounting will have great impact upon corporate financial reporting in the future. TABLE 4. 16*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"ARE HUMAN RESOURCES (PEOPLE) THE MOST IMPORTANT ASSET OF AN ORGANIZATION? † {draw:frame} TABLE 4. 7*: DISTRIBUTION OF *THE RESPONSE ON THE QUESTION â€Å"DO HRA INFORMATION PLAY ANY ROLE IN MAKING INVESTMENT DECISION BY INVESTORS AND OTHER USERS? † {draw:frame} 58 out of the 64 respondents felt that human resources accounting will play an important role in making investment decision by investors. 6 respondents believe that human resources accounting cannot affect investors’ decision in making in investment decision. {text:list-item} Question 5 and 10 give response to the null hypothesis which is to be tested. CHI-SQUARE TEST {draw:frame} {draw:frame} CHI-SQUARE TEST {draw:frame} {draw:frame}

How To Write a Business and Personal Letter in Spanish

How To Write a Business and Personal Letter in Spanish Whether youre writing a letter to a Spanish-speaking friend or preparing a formal business letter, the greetings and salutations in this lesson can help give your letters credibility. Greetings to Use in Writing a Letter In English, it is common to begin both personal letters and business correspondence with Dear ___. In Spanish, however, there is more variation depending on how formal you want to be. In personal correspondence, the equivalent of dear is querido or querida (the past participle of querer), depending on the sex of the person. Querido is used for a male recipient, querida for a female; plural forms queridos and queridas can also be used. In Spanish, it is the rule to follow the greeting with a colon rather than the comma used in English. Use of a comma is seen as an Anglicism. Querido Roberto: (Dear Roberto,)Querida Ana: (Dear Ana,)Queridos Juan y Lisa: (Dear Juan and Lisa,) Note that in Spanish the masculine form, queridos, is used if the recipients include people of both sexes. However, querido is too casual for business correspondence, especially when you arent a friend of the recipient. Use estimado or estimada instead. The word literally means esteemed, but it is understood the same way as dear would be in English: Estimado Sr. Rodrà ­guez: (Dear Mr. Rodrà ­guez,)Estimada Sra. Cruz: (Dear Mrs./Ms. Cruz,)Estimada Srta. Gonzlez: (Dear Miss Gonzlez,) Spanish doesnt have a true equivalent of the English courtesy title Ms. (and in Spanish, the distinction between seà ±ora and seà ±orita, traditionally translated as Mrs. and Miss, respectively, can be one of age rather than marital status). It normally is fine to use the courtesy title of Sra. (the abbreviation for seà ±ora) if you dont know whether a female recipient of the letter is married. Good advice is to  use Sra. unless you know the woman prefers Srta. If you dont know the name of the person youre writing to, you can use the following formats: Muy seà ±or mà ­o: (Dear sir,)Estimado seà ±or: (Dear sir,)Muy seà ±ora mà ­a: (Dear madam,)Estimada seà ±ora: (Dear madam,)Muy seà ±ores mà ­os: (Dear sirs, dear sirs/madams,)Estimados seà ±ores: (Dear sirs, dear sirs/madams,) The Spanish equivalent of to whom it may concern is a quien corresponda (literally, to the one responsible). Closings to Use in Writing a Letter In English, it is common to end a letter with Sincerely. Again, Spanish offers a greater variety. Although the following closings for personal letters may sound overly affectionate to English speakers, they are quite commonly used: Un abrazo (literally, a hug)Un fuerte abrazo (literally, a strong hug)Carià ±osos saludos (roughly, kind regards)Afectuosamente (affectionately) The following are common with close friends or family members, although there are many others that can be used: Besos y abrazos (literally, kisses and hugs)Besos (literally, kisses)Con todo mi carià ±o (with all my caring)Con todo mi afecto (with all my affection) In business correspondence, the most common ending, used in much the same way as sincerely in English, is atentamente. That can also be expanded to le saluda atentamente or les saluda atentamente, depending on whether youre writing to one or more persons, respectively. A more casual ending that can be used in business letters is Cordialmente. Longer salutations include saludos cordiales and se despide cordialmente. Although this language may sound flowery to English speakers, it is not unusual in Spanish. If you are expecting a response from a business correspondent, you can close with esperando su respuesta. As is common in English, the salutation is typically followed by a comma. If youre adding a postscript (posdata in Spanish), you can use P.D. as the equivalent of P.S. Sample Personal Letter Querida Angelina: ¡Mil gracias por el regalo! Es totalmente perfecto.  ¡Fue una gran sorpresa!Eres una buena amiga. Espero que nos veamos pronto.Muchos abrazos,Julia Translation: Dear Angelina,Thanks a lot for the gift! Its totally perfect. It was quite a surprise!Youre a great friend. I hope we see each other soon.Lots of hugs,Julia Sample Business Letter Estimado Sr. Fernndez:Gracias por la propuesta que usted y sus colegas me presentaron. Creo que es posible que los productos de su compaà ±Ãƒ ­a sean à ºtiles para minimizar nuestros costos de produccià ³n. Vamos a estudiar la propuesta meticulosamente.Espero poder darle una respuesta en un plazo de dos semanas.Atentamente,Catarina Là ³pez Translation Dear Mr. Fernndez,Thank you for the proposal that you and your colleagues presented to me. I believe it is possible that your companys products could be useful for reducing our production costs. We are going to study the proposal thoroughly.I hope I can give you a response within two weeks.Sincerely,Catarina Là ³pez

Making sense of strategy Essays

Making sense of strategy Essays Making sense of strategy Essay Making sense of strategy Essay 8301 A Making Sense of Strategy I An Analysis of the Impact of the Internet on Competition in the Banking Industry, using Porters Five Forces Model [Student Name] [Student ID] [Submission Date] words: 2500 Table of Contents Question 1: Examine how the emergence of the internet is likely to affect the competitive landscape of the banking industry. a. Evolution of Internet its Effects on Banking Industry: In todays modern era, nobody can deny the immense growth of technology and power of computerization. Modern computerized revolution has penetrated into every sector in the form of internet. The emergence of internet has greatly helped the banking industry to setup a domain of its clients and mark their geographic locations. This computerized system of banking simply refers to E-banking that is a broad term that takes place on the online system. There is no need to go personally to the bank; it only demands an online system to make the financial transactions. It can also be called as online banking, phone banking or a personal computer banking, etc. The power of online banking and e-business solutions has greatly helped the customers to make instant transactions online. With these latest wired facilities, banks can easily carry out their account operations, or the e-business plans, the online banking system now provides full convenience to its customers to check the status of their accounts and to make transactions at its fastest pace. Electronic banking has become a platform to meet the demands of the changing and growing consumer as well as develop a new base of customers. It is not only the fastest mean of transaction but also provides more efficient ways to handle your bank account. It has provided many Job opportunities by enlarging the commercial market. There is a substantial increase in the altering standard of living and know how scientific the efficiency of the people decided that the Internet and online banking channel is that were hardest smack and used confidently. Lets discuss about the benefits of todays online banking system and its various client oriented approaches. The most basic elements of an online banking system are Customers Account Management, Provision of Fast Solutions, and Value- Added Services and Support. One of the biggest advantages of online banking is the efficient account management and its operations. Be it an online purchase request, or a simple balance enquiry, be it a cash transfer process or an e-business investment, the power of online banking operations has made it much easier than before. Now, the customers are not required to go and visit bank themselves. With online banking facility, they can easily operate their accounts, make transactions and can have their bank statement checked instantly. Moreover, corporate banks can easily provide fast services to their customers by using their online banking system. Another advantage of online banking is the reduction of business cost. An online system provides a central data repository and a network of computers attached with the main server. This helps to reduce the operational costs of a bank for maintaining more branches at different locations. Internet is the most powerful source to capture a wider audience simultaneously. With this facility, it has become much easier to setup a network of online banking system. Internet banking does not restrict the banking system within a country but allows offering their services globally without involving any extra cost. Internet has made it easier to target specific market online. It directly allows bank to focus more and to provide full product information, services or any other information necessary to be known by the customer. This feature gives advantage to the bank to get the hold of most profitable customers and to keep up the long term relation with them. Online banking approach provides flexibility to remain connected with your valuable customers 24 hours and keep them updated about their desired information on a regular basis. This helps to enhance the image and reputation of the bank. Provision of fast value added services helps to acquire ustomer attention more promisingly, with added customer loyalty and trust. A lot of new innovative technologies and advance services are rapidly becoming a part of online banking system. This will provide a competitive edge to bankers by attracting more customers with powerful client oriented packages and consumer driven initiates. Internet as a strong means of communication has greatly helped to boost the online banking process and making it a future demand of todays banking industry. Question 2: be able to compete in this environment dominated by internet and online banking. . Fundamental Requirements to Establish a Hi-tech Banking Industry: With the huge growth of banking business and emerging need of internet banking, there must be a wide availability of resources and capabilities that a bank should possess to compete in a fast paced environment. Lets talk about these resources and capabilities that make a bank successful in todays modern computerised world. 1 . Online Banking: The first and foremost necessity of todays computerized banking industry is to have an online banking system. With the power of internet, online banking is the only system which provides easy solution to customers problem. Now your problems can be addressed instantly on the net, through your banking network. Different banks are providing different packages and services to capture more market share and customers loyalty. These includes special banking offers like car loan facility, house loan, study loan, business loan, credit card facility, visa card for shopping purposes, and much more. With each value added service, different banks offer different packages and discounts to their customers, to make their online banking system better and most desirable as compared to their competitors. . Mobile Banking A new state-of-the-art facility in computerised banking industry is the mobile banking. With this innovative technology, customers can now operate and check the status of their account online, by using their mobile internet. Majority banks have been providing an alert message facility to its customers. You can easily subscribe to any online value added service by sending a text message on your bank servi ce number, or online help number. Either it be a request for your account balance to be received weekly or monthly basis on your mobile via sms alert facility, or it is request o get your transaction details as an instant message from your bank. The mobile banking is a highly beneficial facility for businessmen and entrepreneurs. 3. Competent Staff Another emerging need of internet and computerised banking is the availability of competent and talented staff. Having educated and smart people on board can greatly help to contribute positively in companys growth and development. Moreover, it is required that the staff must have the prior knowledge of online internet marketing and e-business strategies to effectively carry out the banking operations. Experienced staff and trained people would be able to handle technical and non-technical, both problems easily, and would be in a much better position to meet customer needs to their full satisfaction. Another added benefit is the establishment of healthy learning environment, where senior and trained personnel can help to train new staff on the latest online tools and banking software, and could also get benefited from fresh ideas of the newcomers. . Secure Network One of the most important concerns of online internet banking is its system security and safety. The account information is the most confidential data of a customer that eeds to be privately secured. It is highly important that the bank must have a firewall protection and other security protocols and measure to keep data safety and integrity. Cybercri me and hacking are at its peak. There is a need to protect system from these online threats, malwares, computer viruses and other bugs that can lead security techniques and softwares to protect clients data. This high end protection enables the bank to carry out its operations smoothly and helps to maintain the required trust level with its customers. 5. Prior Planning Action Banking business is progressing rapidly with todays market needs and customers ecessities. Market is the survival of the fittest. Without proper business action plans and strategic marketing policies and procedures, a bank cannot compete in recent electronic banking environment. A banker must do a proper market survey and study of its operational environment before starting its banking business. This helps to determine its main stakeholders, competitors, and current services provided. Moreover, it would be helpful to make a healthy business structured plan and improved programmes, offering better policies and procedures, as compared to other competitors of the banking industry. Question 3: The authors argue that certain theories and concepts used to key for competitive advantage in the traditional business environments are no longer important in this new era of internet dominant environment. Explain. Contemporary Theories and Internet Dominant Environment The modern approach of online baking and internet e-business has changed the banking procedures and operations drastically. A lot of new effective marketing strategies have emerged to address and solve customers problems and to provide better services. However, we should not forget about the indigenous and ontemporary marketing theories and philosophical models that makes the foundation of todays banking business. These models are the pillar stones of banking system. The old theories of competitive advantage demonstrate the basic working principles of banking business and its consumer driven approaches. One such competitive advantage theory is the Porters Five Forces Model. This framework is based on five forces that can influence the banking industrial structure. This model helps you to understand about the strength of your current competitive position and makes an important part of your planning toolkit. Porters models highlights about the Competitive Rivalry i. e. the number and capability of your competitors. If you have many competitors in the market, and they offer attractive products and services, then you will most likely have little power in the situation, because suppliers and buyers will go elsewhere if they dont get a good deal from you. Secondly, the Supplier Power i. e. how easy it is for suppliers to drive up prices. This depends on the number of suppliers, the uniqueness of their product or service, their strengths and selling capabilities. The third force is the Buyer Power i. e. the customers who inally consume the product or the firms who distribute the industrys product to the final consumers. Potential customers can bargain to cut down the prices being charged by the firms and can demand better quality and service of product. Then we have the Threat of Substitution i. e. the ability of your competitors to find a different way of doing what you do, by introducing substitute products having ability of satisfying customer needs effectively. Porters last and fifth force is Threat of New protection for your key technologies, then new competitors can quickly enter your market and weaken your position. If you have strong and durable barriers to entry, then you can preserve a favorable position and take fair advantage of it. Porters five forces model and generic strategies are easily applicable and greatly important for all the banking business scenarios. These basic strategies are the basis for all new and advanced theories and strategies. All banking business must consider and incorporate these theories, while designing and planning their marketing strategies, policies and programmes. Question 4: Select a bank in your home country and answer the following: a. Using Porters Five Forces model, discuss its competitive environment, b. How the internet impacts it competitive position and c. How it has continued to preserve its competitive position. a. Porters Five Forces Model Lets take the example of Central National Bank of America and discuss its operations based on the Porters Five Forces Model: Rivalry among Existing Competitors Business rivalry leads to a healthy market competition among existing firms as well as new entrants. If there are lot of competitors in the market, each competing for the same products and services, then there are strong chances of price fluctuation, innovation of new products and services, better advertising methods and campaigns nd provision of quality products. Business rivalry greatly effects the marketing operations and setups of business firms. Each firm tries to adopt effective methods and techniques to capture greater market and community share. Some may reduce their product price to attract more customers, while others try to introduce more innovative and substitute products. Some firms pay special focus on their advertising methods and campaigns to get a larger customer share, as well as making improvements in their products and services. For example, in Central National Bank, the competition among different banks is very high. The Central National Bank of America has to face strong rivalry from its competitors. To cope with it, the bank has adopted several policies including provision of improved quality of services, well planned advertising campaigns, and customer focused initiatives, to gain higher market share. Threat of New Entrants New entrants always bring a healthy competition in the market with their new innovative products and get a share in the market easily. Banking industry in Central National Bank is also on the rise. It is growing at a very good pace. Due to tough competition and emergence of new entrants in the market, Central National Bank of America, is forced to lower its margins in order to attract the customers. Threat of Substitute Products Services Nowadays, consumers are paying attention towards a better quality and affordable price product. This leads to competition among different firms to introduce high quality, superior products, but within the buying range of their customers. These substitute products and services are the basis to differentiate and makes a firm achieve better position in the market from its competitors. The banking industry is also adopting several cross-cutting techniques and policies to fulfil customer needs nd make them happy with their operations. The Central National Bank of America is also striving from the past many years to win customers heart by establishing a strong banking setup and better implementation policies. Several new banking services including online banking, mobile banking, and e-business investment plans have been introduced by standard chartered bank, to provide maximum flexibility and state-of-the-art facilities to its customers. Buyers Bargaining Power A buyer bargaining power is another strong influential factor that greatly affects the business. If the prices are higher, then the company would be in a weaker position, aking its clients inclined towards other competitors products and services. However, keeping a reasonable and affordable price lowers the chances of a buyer to bargain for products at their desired price. This in return helps to strengthen the position of the company in the market. Americas banking industry offer fixed charges and prices for almost all the services. This helps to establish reasonable price criteria where consumers dont have to decide between different competitors products. For example, the bank account opening charges and minimal opening balance requirement for all the banks in America is nearly the same. This helps the lients to open an account in any bank of their desire, as it would not make any wide ranging difference to switch between two banks. Suppliers Bargaining Power Suppliers bargaining power hold special importance to influence the market. If suppliers are providing high quality products which can meet clients need to its fullest, then they are in a better position to bargain a higher price for that product. Making services and products up to the mark and maintaining a suitable quality standard helps the suppliers to get a larger share and incentive out of their spent cost. Moreover, customers also prefer to buy a quality product. If other suppliers bargaining powers are lower, then the customers demand to get high quality, good featured product also rises. In Central National Bank of America, the suppliers of bank include the customer deposits, mortgage-backed securities, mortgages and loans, and loans from other financial institutions. The availability of several banks in the market makes the suppliers bargaining power high. a. Impact of internet on competitive position Power of internet in the banking sector has contributed greatly to promote and spread its operations worldwide. The facilities like online banking, mobile banking, ith quality internet banking services. Standard chartered bank is a multinational bank that also adds to the competitive edge. Moreover there have been so many unique services linked with standard chartered online banking that are provided by the bank. These all factors have helped the bank in setting the competitive advantage. c. Managing competitive position Standard chartered bank KSA, strong adherence to its policies and customer-oriented approach has helped to establish its reputation and image in the market, so far. It is considered as a leading bank in Saudi Arabia banking industry. This is also due to its onstant revision and upgrading of the online services and programmes to meet customer needs. Bank manages its competitive position by adding new services to its service line and by maintaining the standard of its services. Customers can get maximum benefit from standard chartered bank for its new initiatives and better revised policies. References Gefen, D. and Straub, D. (2000). The relative importance of perceived ease of use in IS adoption: A study of E-commerce adoption. Journal of the Association for Information Systems, 1, pp. 1-28. Gerrard, P. and Cunningham, J. B. (2003). The diffusion of Internet anking among Singapore consumers, International Journal of Bank Marketing, 21 (1), pp. 6-28 Kalakota, R. and Whinston, A. B. (1997). Electronic commerce A managers guide. Massachusetts: Addison-Wesley Longman. Porter, M. E. (1979) How Competitive Forces Shape Strategy, Harvard Business Review Simpson, J. (2002), The Impact of the Internet in Banking: Observations and Evidence from Developed and Emerging Markets. Telematics and Informatics, 19(4), pp. 31 5-330. Thornton, J. and White, L. (2001) Customer orientations and usage of financial distribution channels, Journal of Services Marketing, 15(3), pp. 168-185.