Sample Essay on Motivation

Sample Essay on MotivationSo, you're about to complete your part in a lecture or discussion that will go into much greater detail about your sample essay on characterization. This is a great task, because the assignment can be somewhat lengthy but nonetheless does not need to be. In fact, you should know that it is the instructor's job to break down the paper into sections so that they can move on quickly from one section to the next. Here are some ideas that you can use to help you prepare for your presentation on this topic.The first thing you should do is to make sure that you've fully accomplished each of the important things on the assignment. Do this by making sure that you have taken a close look at the material before hand and then trying to make sure that the parts of the assignment are in order. If you need to look over your assignment again, you should be able to move on to the next section, but if there are any discrepancies or other issues, this could take up a lot of ti me. You do not want to spend valuable time doing this.The second thing you should do when you're through with your sample essay on characterization is to look over your essay for accuracy. Make sure that the statement of the assignment you've written is accurate. If there are any inconsistencies, or things that are not clear, you will need to explain them or offer more detail. Remember that this is an academic paper and you'll need to be careful when writing this kind of paper. You do not want your students to be confused or have any questions about what you're saying.The third thing that you should do when you're finished with your writing assignment is to make sure that you've addressed all of the important topics on the topic of writing, writing style, good proofreading, and the use of examples. Once you've covered these three important topics, you should be on your way to having an accurate essay that meets the standards that the school will require. The grade will reflect your responsibility for the course as well as the credibility of your college.Your next step is to review the entire assignment to see if there are any areas that need to be improved. If there are, you should write a short paragraph explaining what you've changed or added to it. That is your way of letting your instructor know that you're willing to make changes and improvements. It is also a good idea to discuss how you will carry out the changes so that you don't leave anything out of your presentation.Your final step is to summarize the essay so that you can begin to move on to the next section. You should begin by explaining how the items you've already discussed are connected to each other. Continue by discussing the areas of discussion as well as any new points that you have made.As you can see, these three things are a very important thing to do when you finish writing your essay. You should make sure that you do it all correctly so that your student doesn't get frustrated, and yo u will also be rewarded with a high grade.

Why Credit Companies Target College Students

Introduction This paper discusses why credit card companies should not market to college students .The culture of spending has become an important shaper of societal approach towards money and is now a widespread way of life in colleges.Advertising We will write a custom essay sample on Why Credit Companies Target College Students? specifically for you for only $16.05 $11/page Learn More In a bid to get more customers, the credit card companies target college students, and to do this, they employ assertive marketing techniques in order to attract students. College students have been raised in homes where money acquired through credit is used without inhibitions (Ritzer 1995).Since credit is available easily, students tend to overspend. College students now have easier access to credit than any earlier generations. However, the use of credit cards and the debts that is a consequence of cards have become an increasingly monetary threat to students. Todayâ €™s credit card companies are getting outrageously ridiculous with their marketing ideas and strategies. Many of their strategies are pointed towards people who are more likely to be irresponsible. The one strategy I would like to talk to you about and my opinion about it is credit card companies should not be on campus marketing to college students. Why credit companies target college students One point of view to this is that credit card companies target college students because many of them are young. Younger people are most likely naive and do not spend their money wisely. They would use a credit card for everything and maybe let the balance pile up and only pay the minimum. This would make the interest pile up and when they did pay their bill, most of the payment would be going towards the interest. This would be making the credit card companies more money. Another point of view would be that maybe credit card companies think that if people are smart enough to go to college that maybe they are really smart with their money and are completely in control of their financial status. Maybe the companies view it as a place to pick up some continuous valued customers. I got that point of view when I asked my mother to read what I was writing and that was her point of view! I do see her point of view as a valuable opinion and I enjoyed her criticism of the topic. But let me tell you some of the facts and things that I have learned while studying this argument.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In a report from trueCredit.com students graduate from collage while being indebted to credit companies for significant amounts This report further indicates that ten percent of undergraduates graduate with thousand of dollars as loans. After finishing your studies it’s a night mare for you to start thinking of paying debt to credit cards companies. It†™s more than enough for a twenty year old to think of how he will pay school loans, utilities and rent if he used them and how he will support himself in life. There will be bills to be paid every month and other additional debt, for example, car loan. That is already a lot of concerns that must handled by a young student. Prior to going to college, a student should employ some fundamental principles to avoid falling into the debt trap. These are some interesting facts I learned from an author named Latoya Irby. She was also interested in this argument. I learned a lot from her. Students who are in college are the main target of credit companies. This is so because of several rationales: They expect the credit accrued from the cards will be cleared by the student’s parents. Students face many years of clearing the debt. Companies go even further to give credit to students who have no security. For illustration, a student can have access to credit without any security being required. This proves that they are out for blood so to speak. They prey upon young people and try to get them hooked and sucked into the system. I think it is sad that this is allowed to go on, especially in a place where we go to better ourselves. Of all places a school is not a place that these types of things should be happening. Attitude of college students toward credit card usage The change of outlook towards money has become an essential means for the broadening of the college student’s consumer habits. Findings intimate that the resultant attitudes towards money: â€Å"power, prestige, distrust, and anxiety† (Yamauchi and Templer 1982) are linked to purchases that are compulsive, whereby the use of credit cards averages these correlations. Studies entailing a wide range of adult consumers revealed that approximately 1%-6% fall under the category of buyers that are compulsive. When Faber and O’Guinn’s (1992) â€Å"clinical screener for compulsi ve buying† is used to examine the respondents, 6% of questioned college students are deemed to use money for purchases out of compulsion. As a result, the indicators point to the need for an enhanced comprehension of the attitude towards making purchases of college students. Some factors, that include: psychological and socio-economic influences are the main contributors of the attitudes towards the use of credit cards. When buying trends of college students are analyzed, a sentimental attitude towards credit and gender were the main affecters of the students’ decision to use (or not use) credit for purchases.Advertising We will write a custom essay sample on Why Credit Companies Target College Students? specifically for you for only $16.05 $11/page Learn More This sentimental attitude towards credit affected how clothes, entertainment, gasoline, travel and food (that is not home made) were bought. Females made more purchases of clothes, wh ile males made more purchases of electronics and entertainment related goods. Females were found to have made purchases that followed the principles of economics more than males. Conclusion According to a press release statement of the American Consumer Federation, when the credit card debt and study loans of a student are added, the total is approximately $20,000. Consequently the debts of the student that has attended college may exceed those of the populace that has not attended collage which means that students who use credit cards will be burdened with severe financial concerns later on in life. This paper has discussed how credit accrued by students while still in college has significant consequences on their future monetary health. This paper concludes that credit companies should not market to college students, so as not induce students to undertake debts unnecessarily which would lead to a long-term financial burden. References Faber and O’Guinn. 1992. â€Å"A Clini cal Screener for Compulsive Buying†. Journal of Consumer Research, 19:459–469. Ritzer, G. 1995. Expressing America: A Critique of the Global Credit Card Society, Thousand Oaks , CA : Pine Forge Press. Yamauchi, K. and D. Templer 1982. â€Å"The Development of a Money Attitudes Scale†. Journal of Personality Asses This essay on Why Credit Companies Target College Students? was written and submitted by user AlexWilder to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

How to Know If Teaching Is the Right Profession for You

How to Know If Teaching Is the Right Profession for You Teaching is one of the most rewarding careers that one can embark on. It is also one of the most stressful as demands and expectations are always changing. It takes a special person to handle everything that is thrown at teachers. Before making a life-changing decision, you need to be sure that teaching is the right profession for you. If the following five reasons ring true, then you are likely headed in the right direction. You Are Passionate About Young People If you are thinking about going into teaching for any other reason than this, you need to find another career. Teaching is difficult. Students can be difficult. Parents can be difficult. If you do not have an absolute passion for the young people that you teach, you will burn out quickly. Having a passion for the young people that you teach is what keeps a terrific teacher going. It is what drives them to spend long hours trying to figure out how to help those students who are struggling â€Å"get it.† That passion is the driving force behind doing your job year after year. If you do not have a total passion for your students, you might last a year or two, but you will not make it to year twenty-five. It is a must have quality for every good teacher. You Want to Make a Difference Teaching can be immensely rewarding, but you shouldn’t expect that reward to come easily. To make a real difference in a student’s life you have to be adept at reading people and figuring out their own unique preferences. Children of all ages can spot a phony quicker than any adult. If you are not there for the right reasons, they will certainly figure it out quickly. Teachers who are real with their students are the ones who make the most difference in their students’ lives because the students buy into what they are doing. Making the students believe that you are there to make a difference is something you have to show them over time. You Are Skilled at Instructing People in a Variety of Ways Students come from such diverse backgrounds that it is difficult to approach any two students in the same way. You have to be willing and able to teach the same concept through many different approaches, or you may not reach all your students. You will unquestionably not be an effective teacher if you only teach one way. A fantastic teacher is an evolving teacher. Teachers who search out better and new methods are the ones who will make it. Being flexible and adaptable are two key characteristics of a good teacher. It allows you to provide instruction in a variety of method that will meet all your students’ needs. You Are a Team Player If you are someone who does not work well with others, teaching is not the career for you. Teaching is all about relationships and not just the relationships with your students. You can be the greatest instructor in the world, and you limit yourself if you cannot effectively communicate with the parents of your students as well as your peers. Your peers can offer you so much information and advice that it is an absolute necessity be a team player who is willing to not only listen to advice but then to try to apply it to your teaching. If you cannot communicate well with parents, then you will not last long. Parents expect to know what is going on in their child’s life. You provide a large chunk of that information for parents of school-age children. A good teacher needs to be able to work with everyone involved in the school community. You Can Handle Stress Factors All teachers cope with stress. It is essential that you be able to handle everything thrown at you. There will be days when you are dealing with personal issues, and you have to overcome those once you walk through your classroom doors. You cannot let a difficult student get to you. You cannot allow a parent to dictate how you handle your class or a particular student. There are so many opportunities for stress within a classroom that an excellent teacher has to be able to handle it, or they will be burned out tremendously quick. If you cannot manage stress extremely well, then education may not be the right profession for you.

Global Operations Management Essay Example | Topics and Well Written Essays - 250 words - 1

Global Operations Management - Essay Example 2) The organization identity must be aligned with the business structure the company chooses to implement. The expansion project can be set up using different managerial structures including centralized, decentralized, and matrix structures. Assuming that the company wants to start small with an emphasis on a specific project my recommendation is for the firm to use a matrix organization structure. â€Å"Matrix organizations are often set up to make organizations more flexible, to break down the old functions or geographic â€Å"silos† and encourage more cooperation across the business† (Global-integration, 2012). 3) There are plenty of legal factors that must be considered when expanding to a foreign country. The firm has to evaluate the environmental laws of the country. Secondly the company must study and carefully analyze the labor laws. A good strategy is to hire a human resource manager from the native country. The tax code of the country must be followed to maintain good relations with the government. A fourth legal consideration is local laws relating to the relationship between a manufacturer and local agents or distributors (Kentuckianabusinessforum, 2012). Kentuckianabusinessforum.com (2012). Legal Considerations in Operating in Foreign Markets. Retrieved February 17, 2012 from

An Assessment of Effectiveness of Dell's Organization Culture and Essay

An Assessment of Effectiveness of Dell's Organization Culture and Change - Essay Example Nevertheless, the concept of effectiveness should apply to all stakeholders in an organisation. This ensures harmony in all its operations, which has the end result of high performance. The current study examines the effectiveness exhibited by the dell management, in relation to how it has been able to effectively build an organisation culture, which pushed it up to its success. Background of the study In the past few decades, many organisations have changed their ways of doing business. This has been as a result of high competition. In particular, organisation culture and change has been one of the ways through which organizations have sought to focus on to maintain completive advantage (Harold 2009). In this regard, it is apparent that organisations have to analyse the best management practices through strategic plans that are aligned with organisation’s objectives, mission and vision statements (Hill & Jones 2008). These practices become a culture that an organisation shoul d endorse and cling on in order to achieve its objectives (Dyck and Neubert 2010). However, due to increased and the emergence of new technologies, any organisation that needs to survive in highly competitive market has to embrace such technologies (Marr 2010). This means that organisations should also create a culture of adopting innovations that are in line with their objectives (Daft and Lane 2010). Analysis of output control: a concept of organization culture In order to have a spectrum of what organisation culture and change entails, it is crucial to first understand what organisation culture is. This is an internal environment that establishes a personality for the organisation, which plays a part in influencing the behavior of its members (Flamholtz and Randle 2011). These could be summed up to mean core values and fundamental beliefs or an organisation. Studies have documented that an organisation with a strong culture, members act with shared understandings and commitment t o core values. Key elements of organisational culture involve innovation and risk taking, concern for people, team building and emphasis, and performance orientation (Phaditare 2011). With such deliberations, the focus of this paper will be on the case study on Dell Computers, which according to Bhattacharyya 2010, is argued to have been â€Å"able to achieve excellence by giving due emphasis on creating a positive work culture through pro-active human resource management practices† (18). In this regard, this paper aims at articulating on ways through which Dell’s organisational culture has enabled it achieve excellence. In order to have an efficient organization culture, an organization has to have efficient managers and the overall organizational structure. Dell’s organization structure is believed to forecast suitable performance in relation to its goals. For example, Dell’s reward system is linked to its goals, which help to motivate employees in orde r to improve performance. Nevertheless, Dell has created a culture of directions on each division on how to achieve its goals. Dell’s CEO Michael Dell, is argued to have tried to decentralize the authority to low-level employees. This has been an effective strategy that has facilitated company-customer relationship thus creating a customer service culture. Study objectives 1. To find out Dell’s elements of organ

Creditor and Debtor Relationship in Contract Law

Creditor and Debtor Relationship in Contract Law For an agreement to become binding, the parties must show that they supplied consideration; Currie v. Misa (1875)[1], and such consideration may exist of either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other. In simple terms, it means that each party must do or give something in return, for what is acquired from the other party. Thus, if a party wishes to sue upon an agreement, it must first show that they themselves provided some form of consideration to the other; Tweddle v Atkinson (1861)[2].   Hence, consideration is an integral component for the implementation of contracts. Pollack, provides a simpler explanation; that it is an act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable[3]. And, it is this very definition which Lord Dunedin emb raced in the House of Lords (HOL), in Pneumatic Tyre Co Ltd v Selfridge and Co Ltd (1915)[4], a seminal case on the issue of consideration. Consequently, it begs to reason that a promise to forbear part of your consideration, as final settlement, does not make much sense in light of Mr. Pollacks definition. Yet, Sir Edward Coke, created a common law exception in Pinnels Case (1602)[5] that where a debtor promises to provide, as final settlement of the debt, a lower sum which the creditor accepts, will only be binding, provided that the creditor accrues some extra benefit, for the loss suffered. This case was affirmed by Baron Alderson in Sibree v Tripp (1846)[6], on the basis that only where the debtor is bound to do something more than what he was already bound to do, in the original contract, can his part payment be considered acceptable. These extra elements, ranged from providing the debt at an earlier date, to providing chattel instead of money and lastly, providing the debt at another location[7], then the one prescribed in the original agreement. The rule in Pinnel was later applied by the HOL in Foakes v. Beer (1 884)[8], where the court upheld the claim of the debtor for the remaining balance of the sum owed, despite, the existence of a promise by the debtor to forgo the balance. The court reiterated that a promise to forgo part of a debt owed cannot itself form enough consideration, to withhold the debtor form exercising his strict legal right. This approach was recently adopted in Re Selectmove Ltd (1995)[9], where the COA held that a reiterated promises to do the same, which you are already bound to do, can only amount to valid consideration if the other party was to receive a practical benefit. These cases opened the gates on the issue of the creditor and debtor relationship and how the law of contract gradually eased its restrictions on debtors. Slowly, yet gradually, equity came to the rescue of the debtors, thus, in the process creating exception to the principles founded in Pinnel. But for the time being where a debtor does not provide an added benefit for his part payment, and the creditor accepts the lesser sum; surely common law, as per the decision in Pinnel Foakes; would not bar the creditor from enforcing his strict legal right, post acceptance of the lesser sum. This very question was the focus of the case, Hughes v Metropolitan Railway Co (1877)[10]; where the equitable doctrine of promissory estoppel came into existence; and subsequently revived, some 70 years later, in the Dicta of Lord Denning as a recognized principle of equity; Central London Property Trust Ltd v High Trees House Ltd (1947)[11]. Hughes involved a tenant, who under contractual obligation, was obliged to keep the premises, in his possession in good repair. The landlord, served the tenant a notice 6 months prior to the termination of the lease; but nearing the end of the lease, negotiations took place between the parties and the tenant informed the landlord that they will not carry out the repair, in the meantime. By the end of the lease, the landlord, claiming that the tenant had not carried out to repair the premises, forfeited the lease. The HOL, applying the principles of equity, held that the landlords behavior implied a promise for the tenants to halt repair till the time the negotiation finished. Thus, the HOL, saw that the time of the 6 months notice ran from the date when the negotiations between the parties finished. Lord Cairns explained that the decision stood for the proposition that where parties, bound by contractual obligation, enter negotiations, their strict legal rights would be held in abeya nce[12]; thus, any party reverting to their strict legal rights would be estoppeled from doing so. This equitable principle saw new heights, in the hand of Lord Denning, often criticized for expanding the principle out of its conventional limits; in Central London Property Trust Ltd v High Trees House Ltd (1947)[13]. The claimant, a landlord, leased part of his property to the defendant; however, war broke out, thus, both parties renegotiated the contracts rent, on temporary basis, till the war lasted. However, once the war ended, the claimant, brought an action against the defendant for the balance of the payment; as agreed upon in the original lease and the reversion to the original rent for the future. Lord Denning, allowed the claimants plea that the rent should revert back to as originally negotiated between the parties, as before the war. He found that, although for the time of suspension, i.e. the time of the war; there existed no consideration for the debtor to accepted the reduced sum. But, he said that the debtor would be obliged due to the equitable principle, which sta tes that a promise intended to be binding, intended to be acted on and in fact acted on, is binding so far as its terms properly apply[14]. In fact, what Denning had done was expand the limits which Hughes had set. Hughes only talk about the suspension of rights, but in High Trees, Denning takes this a bit further, relying on equity, that once a debtor accepts part payment and the creditor relies on the promise; this act destroys the debtors right to recover the rest. Nonetheless, Lord Denning distinguished the decision in High Trees with Foakes on the grounds that a plea of estoppel needs to be specially raised, which was never done in Foakes. Irrespectively, in essence the real implication of this decision was that it was in direct contradiction with Foakes, which restricted part payment of a debt as bad consideration; Hughes, which held that estoppel could not be used to variate the terms of the contract, unless there existed some new consideration to support such variation. In reality, Lord Denning was, often criticized for his expansion of the doctrine, although which remains to be the law. Elizabeth Cooke, claims that Lord Dennings notion of promissory estoppel, single handedly, tries to abolish the debtors strict legal right to recover[15]. Secondly, Denning in High Trees, was also disliked for ignoring the rule in Jorden v. Money (1845)[16] which held that grounds for an estoppel can only be assumed for current or preceding facts, not to those facts which relate to some future conduct. Although, the decision of Jorden is subject to many exceptions; the rule in Hughes being one as well; Lord Denning maintained that High Tress could also be views as an exception to Jorden; thereby beckoning equity as to disallow a party to revert on a promise, once the other party relies on that promise. A few years after the decision in High Trees, Coombe v Coombe [1951][17] illuminated that the doctrine can only be used as a defense to a claim, not the other way around, as the basis for a claim; thus limiting its scope, in equity. However, Lord Denning, in Coombe, did reiterate the position he maintained in High Trees and said that a creditor is not allowed to enforce a debt which he has deliberately agreed to waive if the debtor has carried on business or in some other way changed his position in reliance  [18] of the creditors promise. This case illuminated the factor of reliance as a decider in case of promissory estoppel. Consequently, HOL in Tool Metal Manufacturing Co Ltd v Tungsten Electric Co Ltd (1955) acknowledged Dennings estoppel, and encouraged the view that the doctrine could establish rights, without consideration, based on reliance. The issue involved a manufacturer, who under license of a Patent, produced a certain number of goods. During the war, both parties agreed in letting go of their rights to compensation and awaited new negotiation, at the conclusion of the war. Once, the war settled, the patent owners, on breaking down of negotiations, claimed for the compensation which would have been due from the time that the war finished. The HOL held that the assurance to suspend rights was binding during the period of the war and the owners could, on giving reasonable notice to the manufacture, revert to their old legal regime. Thus, the court established that promissory estoppel merely suspends the rights of the debtor; and only, if the creditor can establish that he could not resume his p revious position; then only can, promissory estoppel suspends that right, completely. Thus, Lord Denning MR, in D C Builders v Rees (1965)[19] dismissing the appeal of the defendants stated that it is worth noticing that the principle may be applied not only so as to suspend strict legal rights but also so as to preclude the enforcement of them, thus reinforcing the idea that promissory estoppel may in certain circumstance extinguish rights all together. He added that, consequently, a creditor may only be restricted from enforcing his strict legal right where it would be inequitable for him to insist upon them[20]. Similarly, Lord Denning, expanding the purview of the doctrine, was reported in Alan Co. Ltd V El Nasr Import Co,[21] stating that the only requisite for the establishment of the doctrine was the fact that one was induced in believing that the other party would not revert back to their strict legal rights. Nonetheless, it must be noted that the HOL has still, yet to date, to give their approval on the doctrine of promissory estoppel. However, in a recent case, Collier v P MJ Wright (Holdings) Ltd [2007] [22]; Arden LJ makes a number of points, enforcing the views established by Lord Denning. She said that where a creditor settles in accepting part payment as full sum, and the debtor pay the part payment, in reliance of the creditors promise; the creditor will be estoppeled from reverting to his strict legal right. Howeve r, interestingly, vindicating the Dictas of Lord Denning in High Trees[23], she stated that because reversion by the creditor would be inequitable; such a move on his part would have the effect of extinguishing his right to the remainder of the debt. Although, it seems that part payment of a debt has became an exception to the rule of consideration, it remains to be seen what stance the HOL would take on the matter. Interestingly, Alexander Trukhtanov[24], argues that Ardens approach is flawed, as it portray the idea that the creditor must establish real reliance, before equity helps, by way of promissory estoppel. He claims that the doctrine of promissory estoppel developed as an answer to the harshness of the rule in Foakes, and the application of this equitable doctrine is not the solution; because any modification to these rules, according to him, requires the legislatures intervention. As far, as the Australian legal system is concerned; they aptly adopted promissory estoppel within their legal system; Waltons Stores v Maher[25], to the extent of recognizing detrimental reliance; where the debtors reliance on the creditors promise causes him to suffer a detriment, it obliges as enough evidence to restrict the creditor from enforcing his strict legal rights. It remains to be seen how the UK legislature views and adopts or either reject, this doctrine. Nevertheless, the legislature must remember the importance of such principles, as correctly stated in Crabb V. Arun DC (1976)[26] that equity comes in to mitigate the rigours of strict lawà ¢Ã¢â€š ¬Ã‚ ¦. Practically speaking, the doctrine of promisor estoppel, is no more than a blessing for debtors, entrapped under debt to their creditor. In conclusion, it seems hard to imagine that, what started as an exception in Hughes, by the help of Lord Denning approach, became a whole new exception to the fact of consideration , and its effects on the enforceability of contracts. (2342 Words) Bibliography Books Articles Casebook on Contract Law by Jill Poole, 13th edition Textbook on Contract Law by Jill Poole, 13th edition. The Modern Law of Estoppel by Elizabeth Cooke (2000). Pollock on Contracts, 8th edition. Foakes v Beer: reform of the common law at the expense of equity By Alexander Trukhtanov, (2008) 124 LQR 364, 366-367. Cases Alan Co. Ltd V El Nasr Import Co. (1972) 2 QB 18 Central London Property Trust v High Trees House Ltd [1947] KB 130 Collier v P MJ Wright (Holdings) Ltd [2007] EWCA Civ 1329 Coombe v Coombe [1951] 2 KB 215 Crabb V. Arun DC (1976) 1 Ch 179 Currie v Misa (1875) LR 10 Ex 153 D C Builders v Rees (1965) 2 QB 617 Foakes v Beer [1884] UKHL 1 Hughes v Metropolitan Railway Co (1877) 2 App Cas 439. Jorden v. Money (1845) 5 H.L.C 185 Pinnels Case (1602) 5 Co Rep 117a Pneumatic Tyre Co Ltd v Selfridge and Co Ltd [1915] AC 847 Selectmove Ltd, Re [1993] EWCA Civ 8 Sibree v Tripp (1846) 15 M W 23 Tweddle v Atkinson (1861) 1 B S 393 Vanbergen v St Edmund Properties [1933] 2 KB 223. Waltons Stores (Interstate) Ltd v Maher [1988] HCA 7 High Court of Australia [1] Currie v Misa (1875) LR 10 Ex 153 [2] Tweddle v Atkinson (1861) 1 B S 393 [3] Pollock on Contracts, 8th ed., p. 175. [4] Pneumatic Tyre Co Ltd v Selfridge and Co Ltd [1915] AC 847 [5] Pinnels Case (1602) 5 Co Rep 117a [6] Sibree v Tripp (1846) 15 M W 23 [7] Vanbergen v St Edmund Properties [1933] 2 KB 223. [8] Foakes v Beer [1884] UKHL 1 [9] Selectmove Ltd, Re [1993] EWCA Civ 8 [10] Hughes v Metropolitan Railway Co (1877) 2 App Cas 439. [11] Central London Property Trust v High Trees House Ltd [1947] KB 130. [12] Ibid at 10 [13] Ibid at 11 [14] Ibid [15] The Modern Law of Estoppel by Elizabeth Cooke (2000) [16] Jorden v. Money (1845) 5 H.L.C 185 [17] Coombe v Coombe [1951] 2 KB 215 [18] Ibid [19] D C Builders v Rees (1965) 2 QB 617 [20] Ibid [21] Alan Co. Ltd V El Nasr Import Co. (1972) 2 QB 18 [22] Collier v P MJ Wright (Holdings) Ltd [2007] EWCA Civ 1329 [23] Ibid Para. 42 [24] Alexander Trukhtanov, Foakes v Beer: reform of the common law at the expense of equity (2008) 124 LQR 364, 366-367 [25] Waltons Stores (Interstate) Ltd v Maher [1988] HCA 7 High Court of Australia [26] Crabb V. Arun DC (1976) 1 Ch 179

Baumol’s “Sales Maximisation Hypothesis?” Essay

To what extent does empirical evidence on corporate objectives support the predictions of Baumol’s â€Å"Sales Maximisation Hypothesis?† In Neo-Classical Economic theory of a firm, the owners of a firm are involved in the day to day running of the firm, and therefore their main desire is profit maximisation. In reality firms are most likely run by managers and not by the owners. Because of this there is a lack of goal congruence between the two. Baumol (1959) suggests that manager controlled firms are more likely to have sales revenue maximisation as their main goals rather than profit maximisation favoured by shareholders. He shows that there are several explanations for the managerial emphasis on sales maximisation rather than maximising profits: sources of debt closely monitor sales of firms and are more willing to finance firms with growing or large sales figures; lay- off necessitated by fall in sales leads to industrial unrest and unfavourable investment climate; and with decreased sales (and consequently decreased market power) the firm enjoys lesser powers to adopt effective competitive tactics. As well as managers’ power and prestige and even salaries are more closely correlated with sales as to profits. Judged in this perspective, sales maximisation can be said to be the independent objective in managerial decision making, where ownership and management are clearly separated. This review of evidence will examine the advantages and limitations of Baumols theory on sales-maximisation. The majority of empirical evidence shows that there little correlation between the remuneration of top managers and the profit performance of their companys, instead sale revenue is seen as the major contributor to the salaries of managers. McGuire et al. (1962) tried to test Baumols contention that managers salaries are much more closely related to scale of operations of the firm than with profitability. They devised simple correlation coefficients between executive income and sales revenue and profits over the seven-year period 1953-9 for 45 of the largest 100 industrial corporations in the US. Their research showed that the correlation between salaries and sales was much greater than with profits. They recognise that there are serious limitations with using simple correlation analysis and the fact that correlation does not necessarily imply causation. Due to this the resear ch they done cannot be proved to be conclusive. D. R. Roberts found that executive earnings are correlated closely with the size of sales and not the level of profits. He used a cross section of 77 american firms for the period 1948-50. This evidence supports Baumols claim that managers have strong reason to pursue expansion of sales rather than increase profits. Conyon and Gregg (1994) produced a study of 177 firms between 1985 and 1990, it showed that pay of the top executives in large companies in the UK was most strongly related to relative sales growth (i.e. relative to competitors). They also found that it was only weakly related to a long term performance measure (total shareholder returns) and not at all to current accounting profit. Furthermore, growth in sales resulting from takeovers was more highly rewarded than internal growth. This evidence supports baumols presumption that sales maximisation is better related than profit, to executive rewards and corporate performance. Profitability and executive pay appear to be largely unrelated, suggesting that other managerial objectives might be given priority e.g. sales revenue. However total remuneration packages for top executives may be linked to profitabilit y, helping to align the interests of managers’ more closely to the interests of shareholders. Shipley (1981), in a major study concluded that only 15.9% of 728 UK firms questioned are true profit maximisers. The majority of the firms answered that the aim of their firms is for satisfactory profits. Hornby (1994) conducted a study off 77 Scottish companies and found that only 25% of the respondents are profit maximisers according to the ‘Shipley test’. And again the majority of the firms preferred satisfactory profits to profit maximisation. Although the study tells us little about sales maximisation, Shipley found that it was ranked fourth among principle pricing objectives, and nearly half the firms included sales revenue as at least part of their set of objectives. Larger companies were the ones that cited sales revenue as their principal goal. Since larger companies have a greater separation between ownership and management control, this lends support to Baumols theory. Marby and Siders (1966/7) computed correlation coefficients between sales and profits over 12 years, 1952-63, for 120 large American organisations. Zero or negative correlations between profits and sales would support Baumols hypothesis. The findings showed positive significant correlations between sales revenues and profits. This does not necessarily contradict Baumols hypothesis as sales and profits are positively correlated in Baumols model up to the point of maximising profits. Even when they concentrated on ‘reliable’ data from 25 companies which they thought had been operating at scales of output beyond the levels corresponding to maximum profit. Correlations between profits and sales were still mostly positive. This evidence is interpreted as refuting the sales-maximisation hypothesis. These studies argue the case for and against Baumols theory of sales-maximisation. Although there have been many studies conducted to test Baumols hypothesis, the empirical evidence is not conclusive in favour for or against the sales-maximisation hypothesis. Many argue that Baumols theory has many flaws, such persons are M H Peston and J R Wildsmith. Behavioural theory opposes the idea of a firm seeking to maximise any objective. Management are more likely to hold a set of minimum targets to hold the various stakeholder groups in balance. In practice, profit maximisation in the long term is a major goal for firms, but sales revenue is an important short term goal, though even here a profit target may still be part of the goal set. A widely used technique in the management of larger firms, portfolio planning, would seem to support the behaviourist view that no single objective will usefully help predict firm behaviour in a given market. In Neo-Classical Economic theory of a firm it suggests, the owners of a firm are involved in the day to day running of the firm, and therefore their main desire is profit maximisation. Managers are supposed to maximise shareholders wealth by investment means such as CAPM, NPV and ARR. This is the traditional means for the modern day manager to increase shareholder wealth. Agency theory explains that shareholders and managers have a relationship which is crucial to the modern firm. Managers run the company on behalf shareholder and shareholders will reward them with high salary. However this is not always the case as human nature dictates that self-interest, wealth, and power will come into the equation. Managers may start building empire, maximise sales and take on long term and complicated projects which only they understand and this will make it difficult for shareholders to sack them. This is typical of most western economies and former chief executive officer of News international James Murdoch argues in Mctaggart lecture 2007, the only reliable perpetual guarantor of independence is profits signalling that maximising profits is the only compass to measure success. This is reflective of the neoclassical economic theory and this essay will examine the advantages and limitations of sales maximisation. . argument for the theory of sales maximisation but there is serious limitations and that is the behavioural difference between long run profit maximisation and sales maximisation that there are no conclusive econometric tests as the difference is very subtle. Therefore there has to be more future research into testing what the key differences are between sales and profits. Also there has to be one to one interviews into the psychology of Managers in the firms that they running as some argue for profits whilst some argue for sales e.g. James Murdoch speech. The use of postal questionnaires for use in studies can bring evidence that is not In summary that is conducted for Baumols hypothesis empirical evidence is not conclusive in favour for and against the sales maximisation hypothesis.