Theories of National Culture Essay Example | Topics and Well Written Essays - 2750 words

Theories of National Culture - Essay Example Some of the famous theories of national culture include Hofsdete’s national culture theory, Hamden-Turner and Trompenaars model, and Edward Hall’s theory. It is important here to understand the link between national culture and organisational or corporate culture. Globalisation has reduced boundaries all over the world and this has led to highly diverse organizations. Employees belonging to different cultures and nationalities are working together in pursuit of the same goals. Employees are greatly influenced by their national cultures and their behaviour is an extension of their cultural values. Managers have to handle diversity and create a corporate culture that is flexible enough to accommodate people from different backgrounds. This is the link between organisational culture and national culture.Hofstde’s national culture theory has 5 dimensions and each explains a specific characteristic of national culture (Hofstede, 1983). All the dimensions can help us b etter understand the cultural values and beliefs of people who belong to those cultures. Most of the relevant information required is given by these 5 dimensions. The factors that distinguish national cultures from each other are grouped into 5 clusters. The first dimension of the theory is power distance that explains the distribution of power in a particular culture (Hofstede, 1983). More specifically this dimension is concerned with the degree of equality or inequality that exists in a culture. The second dimension is of individualism that is related to the extent to which individual or collective interests are pursued in a culture. The third dimension is uncertainty avoidance which explains the degree to which ambiguity is tolerated in a culture or a society (1983). The fourth dimension is masculinity which refers to the degree to which traditional masculine roles are accepted in the society. Initially Hofstede came up with four dimensions but later on he added another dimension of long term orientation or Confucianism (Hofstede, 1994). This dimension refers to the long term focus on traditions and values. All these 5 dimensions help us understand a particular culture better as this theory equips us to evaluate a culture on specific dimensions. Hamden-Turner and Trompenaars also gave a model of national cultures that included 7 dimensions (Hamden-Turner &Trompenaars, 2000). Universalism and pluralism is the first dimension that refers to the degree to which law or personal relationships are considered important in a society. The second dimension is individualism vs. communitarianism which is similar to the dimension of individualism of Hofstede’s model. The third dimension is called ‘specific or diffuse’ which explains how responsibilities are assigned in a society. The other dimensions include affectivity vs. Neutrality, inner directed vs. Outer directed, achieved

End User Term Paper Example | Topics and Well Written Essays - 250 words

End User - Term Paper Example The staff looks to the manager for direction in all aspects of the business. The staff is the end user in any new technology or programs implemented in the business. The staff’s understanding of new technology or programs implemented depends heavily on the direction of the manager. The responsibility of a manager exemplified in the final outcome of end user information systems is through implementing a system of successful learning. End User Satisfaction (EUS) is critical to successful information systems implementation (Au, Ngai, Cheng 2008) In several studies there has been a proven decline in performance and quality of work when new information systems are implemented. This is due to end users having to learn a new system yet produce if not more the same amount of work. The time and training for learning a system can become costly. To responsibly put this new system into effect a manager should first consider before purchasing the system what’s the ratio of user cont rol to the controlling of the user. In other words better user control would be more adaptable in the end user learning the system than the system controlling the user. The systems are usually developed by designers who don’t know the specific needs of the user. So user control is very important.

The movie ( the station Agent) Review Example | Topics and Well Written Essays - 250 words

The ( the station Agent) - Movie Review Example Rather, it explores the possibility and feasibility of strange equations between newly acquainted humans. For example, when Fin moves to the old building left behind by Henry (upon the latter’s death), he suddenly finds himself forming an intricate network of social interactions. In this newfound social atmosphere there are opportunities for creative exploration as well as for personal bonding. The former is attested by the joy Fin derives through observing and studying trains and the latter is borne by the close personal bonds he develops with Joe and Olivia. The most distinct character of this independent film is the lack of sexual interest in any of these relationships. This is a far cry from conventional Hollywood fare whose plots are woven around sexual/romantic interest of the lead characters. The Station Agent is simultaneously inspiring and thought-provoking. For example, the film shows the transformation of a physically disadvantage person’s attitude toward life and other humans. This way it poses key questions to the viewer as to how they view their own predicaments in life. Fin’s near-death experience on the rail tracks is an imploration to the audience to seize everyday moments and make the maximum out of them. This subtle and implicit dialogue that the director Thomas McCarthy strikes with the viewer makes The Station Agent a truly one-of-its-kind independent

End User Term Paper Example | Topics and Well Written Essays - 250 words

End User - Term Paper Example The staff looks to the manager for direction in all aspects of the business. The staff is the end user in any new technology or programs implemented in the business. The staff’s understanding of new technology or programs implemented depends heavily on the direction of the manager. The responsibility of a manager exemplified in the final outcome of end user information systems is through implementing a system of successful learning. End User Satisfaction (EUS) is critical to successful information systems implementation (Au, Ngai, Cheng 2008) In several studies there has been a proven decline in performance and quality of work when new information systems are implemented. This is due to end users having to learn a new system yet produce if not more the same amount of work. The time and training for learning a system can become costly. To responsibly put this new system into effect a manager should first consider before purchasing the system what’s the ratio of user cont rol to the controlling of the user. In other words better user control would be more adaptable in the end user learning the system than the system controlling the user. The systems are usually developed by designers who don’t know the specific needs of the user. So user control is very important.

France During the Period from 1789-1793 Essay Example for Free

France During the Period from 1789-1793 Essay During the turbulent and unstable years of the French Revolution, there were many changes in the aims and ideologies of the revolutionaries. The Storming of the Bastille on 14 July 1789 sparked off events that caused the upheaval of French society, as the three Estates sought to protect and advance their interests. Many factors influenced the changing of the revolutionaries aims, and perhaps none more so than the abolishment of the constitutional monarchy. From the Declaration of the Rights of Man and the Citizen, it can be assumed that the aims of the revolutionaries in 1789 were for the benefit of the French people of every class, but the desire for exclusive political power had undermined this. With mounting social and economic unrest, the French monarchy was under constant scrutiny in the years prior to the Revolution. The Enlightenment had served to cause a change in perception of the French people, from the nobility to even common artisans. The blind faith in the Aristocracy was waning, and the Third Estate, the majority of the population, had much cause to complain. The Third Estate enjoyed few privileges, and were subject to feudal obligations and heavy direct and indirect taxes (e.g. taille and gabelle) as well as the hated corvee royale. The peasants’s lives were ruled by the seigneurial obligations, the payment of tithes, and the scarcity and expenses of common essentials such as bread heightened the dislike for the monarchy who led extravagant lifestyles. The peasant class sought only to improve their standard of living. The bourgeoisie felt an increasing sense of frustration as opportunities for social and employment advancement were limited. The nobility and clergy occupied the higher social classes, and had the privilege of birth, but the business leaders of the Third Estate could not penetrate those circles. While the general consensus among the bourgeoisie was for a constitutional monarchy, they also desired a more significant say in the running of France. The heavy taxation on the Third Estate was regarded as unfair, and the bourgeoisie desired a system of taxation that was based on equality. With the meeting of the Estates-General, the representatives of the Third Estates aimed to address these issues of the ancien regime that affected them. The Second Estate, the Nobility, in favour of the Estates-General, sought only to further their own interests. In the economic crisis of 1769, King Louis XVI attempted to pass reforms that would remove some of the Nobility’s tax exemptions. The Nobility revolted, which contributed to the king calling a meeting of the Estates-General. Therefore we can deduce that the motives of the Nobility in 1789 were solely to preserve their privileges. The Declaration of the Rights of Man was drawn up, and in it was the general principles that reflected the liberal and enlightened thinking of the French population in 1789. The Declaration righted many of the complaints from all three Estates. The Night of 4 August 1789, saw the ending of class privileges. The manorial system in which peasants were tied to their landlords through obligations and fees were gone, as was the corvee and all tithing to the church. The nobility and the clergy gave up their exemptions from taxation. Various factors explain the radical shift in the revolutionaries aims. One significant issue was the popular support of sans-cullotes to the Jacobin Club. The sans-cullotes had an increasing influence on the course of the Revolution, and often achieved their goals by violent means. Jacobin leaders like Robespierre endorsed their extreme measures in the summer of 1792 to overthrow the Girondins, an opposition to the Jacobins. The King was also partly responsible for the failings of the Monarchy, and the rise of the Republic. His decisions to use his veto against legislation that seemed to threaten the interests of the Nobility and Clergy, portrayed him as a biased ruler. He was also found to have had secret dealings with the Revolutions enemies. When the Royal Family attempted to flee from Paris to Austrian territory in June 1790, they were captured in Varennes. The effect was catastrophic for the monarchy. Brought back in humiliation to Paris, it finally proved that the King could not be trusted. For the first time, the aims of the revolutionaries shifted to the establishment of a democratic republic, and the abolition of the constitutional monarchy. The Jacobin Club, a radical political force now led by Maximilien Robespierre, was at the head of the calls for a republic. Petitions by the radicals and the sans-culottes were sent demanding the King be put on trial for treason. The King had not been embracing of the Revolution, and his actions to counter it led to his execution on 21 January 1793. In conclusion, the aims of the French revolutionaries had gone through a series of radical changes from 1789 to 1793. From the Storming of the Bastille to the Declaration of the Rights of Man, the motives for the Revolution were generally moderate: to improve the standard of living, and promote equality and fairness. However, this was marred by the three Estate’s only looking only after their own interests, and the power struggle between revolutionary leaders. From the end of 1789, the motives of the leading revolutionaries grew increasingly radical and repressive, and in the ensuing Terror thousands would yet lose their lives in the name of the Revolution after 1793.

Mcdonalds Risk And Risk Management

Mcdonalds Risk And Risk Management Introduction to risk management The only thing we know about future is that we do not know what is going to happen. This is related to definition of risk in general. Miles Wilson (1998) define risk as being an exposure or a probability of occurrence of a loss. Risk can also be viewed as having a positive effect. PMBOK (2004) defines risk as an uncertain event or condition that, if it occurs, has a positive or negative effect on business objectives. Risks have a huge influence on the success or failure of business. However, risks cannot be avoided, but they can be managed. They must be managed by applying effort to their reduction or elimination. Not all risks need to be eliminated. They are sometimes sufficient to reduce the projects exposure to a level that is acceptable to the project. Risk management costs time and effort, but the impacts can be significant. Without risk management, the chances of danger of failure will be high. Effective strategic risk management can minimise of weaknesses within organisations causing damage. However, effective strategic risk management tools became harder to implement as business operations grow, become more complex, and operate in multiple locations. Risk management is increasingly recognised as being concerned with both positive and negative aspects of risk. Potentially, there are the opportunities for benefit or threats to success as a result of risk. Risk in financial climate arises through countless transactions of an economic nature, including sales and purchases, investments and loans, and various other business activities. Therefore, risk management can provide a solution to making individual and company less in danger. Identifying strategy for risks as soon as possible is particularly important. There are common approaches to risk which take alternative action when risks exposure, removal as insure risk, measure opportunities to risk may occur and make plan to control and acceptation of risk. According to Mills (2001), the systematic approach makes the risks clear, formally describing them and making them easier to manage. In other words, systematic risk management is a management tool, which requires practical experience and training in the use of the techniques. Appropriate responses to risk must be prepared to all the risks that would significantly affect the strategy or returns of the company if they were to occur. Background of McDonald According to McDonald (2010), McDonald is the worlds largest chain of quick service restaurants organisation in the world, serving tens of millions of customers daily worldwide. There are more than 30,000 restaurants in 120 countries worldwide. According to McDonalds Corporation Annual Report (2009), revenue has reached a record more than US$20 billion and US$6.8 billion income and 390,000 employees. McDonalds operates according to four values which are quality, service, convenience and value. Part of organisational culture is the quality of the food and service wherever the branch is located. The good reputation of the company and the expectation of an excellent service no matter which branch people eat is a marketing strategy of McDonalds. McDonalds set a standard applicable to all branches worldwide. However the company also gives a way for innovation by allowing the branches to integrate culture into food and service increasing market share. McDonalds tries to operate on a cost leadership basis by offering low priced goods with higher profit margins. Most of the efficient strategies adopted by McDonalds associate with this strategy of low cost. Since McDonalds operates in 120 countries on 6 different continents, they offer different food selections because of different needs in each country, due to religion, diets, and resources of each individual country. This flexibility and knowledge allows McDonalds to achieve global targets and compete with the other competitors. It shows that the company predict customer needs and handled well to risk. The PESTLE analysis of the macro environment According to BADU (2002), many of organisations success or failure, profit or loss, growth or decline depends on how well they respond to macro political, economic, social, technological and regulatory changes which is the external macro environment. Johnson Scholes (2005) support that the external factors can be divided into six categories which political, environment, social, technology, environment and legal. These external factors usually are out of the organisations control and sometimes present themselves as threats. The macro environment analysis is usually the first step of a strategic analysis. It is sometimes referred to as an external analysis or a PESTLE analysis. In other words, it can be analysed with the many different factors in an organisations macro environment by using the PESTEL framework. The purpose of the macro environment analysis is to identify possible opportunities and threats in the industry as a whole that are outside the control of the industry. According to Kotler (1984), the macro environment consists of the larger societal forces that affect micro environment. The micro environment, on the other hand, consists of the forces close to the company that affect its ability to serve its stakeholders. Firstly, the macro economic environment analysis will identify trends such as changes in personal disposable income as rises in living standards or the general level of demand, rises or falls in interest rates, unemployment rates and inflation. According to Luffman Sanderson (1988), the economic environment consists of the current and future state of key economic variables used to describe wealth, purchasing power, savings and consumption, together with government economic policy deployed to affect those variables. For examples, Gross National Product (GNP) or disposable income are key determinants of demand. The distribution of income in society provides opportunities for organisations to separate product or service offerings in terms of levels of disposable income. The rate of inflation and government policy towards it can really affect consumers attitudes to consumption. As a result, company strategy in the economic environment can be not simply threat for organisation, but oppor tunities for improvement that company can do better. Moreover, Tchankova (2002) states that the economic environment usually is hardly influenced by the political environment in a single country, but the globalisation of the market creates a market that is greater than a single market and needs to be considered separately. Although a particular activity of the government can affect the international capital market, the control of the market is impossible for a single government. Examples of sources of risk generated from the economic environment in global are economic recession and depression and current exchange rate. McDonald could suffer in country where the economy of the respective states is hit by inflation and changes in the exchange rates. Secondly, the macro political and legal environment analysis will identify changes in government, or a change in government policy. As a result, legislation will be made such as minimum age discrimination and disability discrimination and minimum wages. Moreover, political decisions can impact on many essential areas for business such as the environmental regulations, the employment laws, trade restrictions and tariffs, political stability for internally and externally and decision making structures. Luffman Sanderson support that Government at both national and local levels can affect companies not only on a day-to-day basis through laws, policies and its authority, but also at a strategic level by creating opportunities and threats. Furthermore, Tchankova states that the political environment is a more complex and important source of risk in an international aspect. The difference in the ruling system raises different attitudes and policies toward business. For example, foreign investment might be confiscated, or taxation systems might change significantly, which will hurt the investors interests. The political environment can present opportunities as well. McDonald is the international operations which greatly influenced by the government policies such as regulations and new legislations for tax, trade, product safety, health care and labour. Thirdly, the macro technological environment analysis will identify changes in the application of technology. It is related with the application of new inventions and ideas such as the development of the internet or websites as McDonald company business marketing tools. Luffman Sanderson support that the technological environment is compounded of the impact of science and technology in product and process innovation. Technology can improve quality, reduce costs and lead to innovation. These developments can benefit consumers as well as the organisations providing the products and service. Fourthly, the macro social and cultural environment analysis will identify trends in religion, beliefs, behaviours, values and standard such as changes in lifestyles like more women going out to work, changes in tastes and buying patterns. Furthermore, the number of part time workers and attitudes and diverse working environment are also related with changes in society. The speed of change in the social environment may be slow, but its effects are unstoppable. Generally, the companys strategies need time to evaluate the corporate response to social changes. Besides, Tchankova states that the changes in human behaviour and state of social structures are cause of risk. The level of employee and loyalty to the organisation determine to a large extent the success of the organisation. At the same time the changes of culture create opportunities. Lastly, the macro environmental analysis will identify factors such as natural disaster or global warming. For example, volcanic eruption that occur few weeks ago impact on many industries including airline, farming and insurance because of volcanic ash. Also, McDonald recycle standard is result of environment analysis. Oxford University Press (2007) supports that with the weather and climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. Micro environment analysis This environment influences the organisation directly. According to Beamish Ashford (2005), simple approach to this analysis will be to break it down into 5 elements which are business, customers, suppliers, stakeholders and competitors. These are internal factors close to the company that have a direct impact on the organisations and strategic planning. First of all, in terms of customers, organisations should focus on meeting what customer needs and wants and providing benefits for their customers. Success of business depends on how well organisation analysis of their customer. This analysis can be the basis of organisation provides the right product at right price and to the right place at the right time. Otherwise, business strategy will be failed as a result. Customers are a major environmental factor for McDonalds. Nearly 54 billion customers served by McDonald daily basis. McDonalds customers are mostly young generation. Thats way, company always conscious about their choice. For this reason, customers demand, their choice, what they like is impacting McDonalds. In terms of competitors, restaurant industry is extremely competitive. McDonald is one of them and very successful company. They are doing everything in their power to make sure that they attract to their customers. Therefore, competitor such as KFC and Burger King analysing and monitoring is critical if an organisation is to maintain its position within the market. As the competition increase, there are more advantages to the customers. As a result, McDonald is up to date with customer taste and preference. Also, employing the proper staff and keeping these staff motivated is a vital part of the strategic planning process of an organisation. Training and development are essential, particularly in service sector, in order to gain a competitive advantage. McDonald has maintained a huge commitment to their employees and their training, which includes making available to all entitled employees and a consistent management and training programme. In terms of supplier, Beamish Ashford states that supplier relationships are a further critical component to the success of any organisation. It is important to many organisations to ensure consistent supplies in order to meet consistent demand for their product ensuring competitive and quality products for an organisation. Therefore, supplier analysis is essential. As a result, organisation must review some factors such as costs, quality, warranty, financial stability and the relationship suppliers have with competitors. For example, increasing beef prices will have affect on the strategy of McDonald. Prices may be going up as a result. In terms of stakeholders, they are individual or group that can greatly influence the performance of the company. Stakeholders support makes company successful. They have in turn certain expectation from the company. Therefore, to analysed stakeholder expectation is fundamental. According to Beamish Ashford, the role of stakeholders in any organisation seems to have an increasing influence in which organisation can do business. Shareholders are one of typical stakeholders who require a certain level of return which means it is important for any organisations to focus on making decisions that satisfy and maximise this return. Satisfying shareholder needs may result in a change in strategy employed by an organisation. McDonalds stakeholders are individuals or groups that have an interest in the organisation and how it operates. McDonald take into account the needs and requirements of stakeholders. In addition, microenvironment also provides organisations possible threats in the market place that would reduce their profit or rate at which consumers purchasing their products. One of those threats is that consumers use as a substitute to their products. These threats usually come from competitor organisations. Global company and risk management Brindley (2004) suggest that global competition, technological change and the continuous search for competitive advantage are the primary motives behind organisations turning towards risk management approaches in the international chain industry. Furthermore, the increase in economic activity at the global level encourages business organisations to seek a competitive advantage by accessing new markets and expanding their operations. According to Porter (1990), the term competitive advantage refers to the strategies that allow successful companies to create profits in their sector of economic activity which is main objective and goal of most organisations. Dalgleish Cooper (2005) support that organisations manage their operations on a day-to-day basis and risk management does not naturally add value to this activity. Its application is, however, becoming more focussed with organisations identifying a sense of purpose and making proper use of the assessments. This has resulted in its adoption within the internal control systems of organisations in making informed decisions, improving communication with the board and improving their understanding of the risks and controls within the business. Therefore, risk identification is the first stage in any organisations risk management. It is a base for correct future work of the organisation with regards to developing and implementing new programmes for risk control. According to George (2009), risk management is the process of planning, organising, directing, and controlling resources to achieve given objectives. Brown (2000) recommends that boards or responsible directors should consider the key risks and assess how they have been identified, evaluated and managed, and assess the effectiveness of the system of internal control. As a result, directors should have responsibility for all aspects of control and a duty to establish a strong system of risk management, designed to identify and evaluate potential risks in every aspect of the business operation. Risk management is fundamental process in every organisation, which includes control systems to inform managers that organisation has being exposure to risks, and guarantee that strategic risk management is properly implementing. Financial risk According to Jorion GARP (2009), financial risk includes market risk, credit risk and operational risk. Market risk is the risk of losses due to movement in financial market prices or volatilities. This usually includes liquidity risk which is the risk of losses due to the need to liquidate positions to meet funding requirement. Liquidity risk is not amendable to formal quantification. Credit risk is the risk of losses due to the fact that counterparties may be unwilling or unable to fulfil their contractual obligations. Operational risk is the risk of less resulting from failed or inadequate internal processes, system and people or from external events. Financial risk is that a company will not have sufficient cash flow to meet financial obligations. Wikipedia (2010) supports that financial risk is the additional risk a shareholder bears when a company uses debt in addition to equity financing. Companies that issue more debt instruments would have higher financial risk than companies financed mostly or entirely by equity. Therefore, the financial risk management process must not be involve avoidance of risks, but designed at identifying and managing these risks instead. For example, according to McDonald, McDonalds restaurants worldwide, contribute 7% of global profits, making the UK a very important financial market for McDonalds shareholders. Each individual McDonalds restaurant is structured as an independent business, with restaurant management responsible for its financial performance. McDonalds financial reporting and management accounting ensures the best financial position for the company now and for the future. Market risk According to Monetary Authority of Singapore (2006), market risk refers to the risk to an organisation resulting from movements in market prices, in particular, changes in interest rates, foreign exchange rates, and equity and commodity prices. The market risk strategy should first determine the level of market risk the organisation is prepared to assume. This level should be set with consideration given to, among other factors, the amount of market risk capital set aside by the organisation. The organisation should develop a strategy that balances its business goals with its market risk appetite. Accessing to all current operative cash flows and to all financial transactions is indispensable for complete risk management. In order to determine and control risks, the information from these two sources needs to be brought to together. Currency exchange rate risk for McDonald According to Mathur Loy (1984), in a world of increased uncertainty about the future value of exchange rates and increased visibility of foreign exchange gains and losses, it is not surprising that global companies have become more concerned about minimising foreign exchange risks. Exchange rate risk may strongly affect firms profitability and it can be hedged. Once a company becomes involved in international trade, it consequently becomes subject to foreign exchange risk exposure. In other words, because of the increased globalisation, exchange rate has become an important source of risk for an organisation operating in international environment. McDonald is international franchise fast food restaurant. Lashley Morrison (2000) support that franchising business format has become an established global enterprise trend within the service sector. They indicate further that franchising has become a mature industry in the USA and well established in the UK. According to Edwards (2006), the reasons why company is going for international are build more brand and shareholder value, add revenue sources and growth markets, reduce dependence on home market and leverage existing corporate technology, supply chains, know-how and intellectual property. However, certainly, some risks are exposure for those reasons. Exchange rate risk is one of them which unavoidable for global company. According to FinancialCAD Corporation (2009), in 1967, McDonalds opened its first foreign country franchise in Canada. Today, more than 65% of total revenue is derived internationally, as more and more restaurants are opened in countries outside the United States, with increasing McDonalds foreign exchange and interest rate risks. McDonald is challenged with managing these risks as hedging the interest rate and foreign exchange risks for operations based in foreign countries is complex. As a result, McDonalds warned their investors of the potential changes in currency exchange rates to impact company profits, but that the company has tried to reduce these risks. FinancialCAD Corporation continously states that the McDonald financial markets group is responsible for hedging the balance sheet and income statement against foreign exchange and interest rate risks, while funding the growth of global operations. They often fund assets locally, but in many markets this is challenging. The assets are funded by more than $8 billion in debt, with over 50% of the debt denominated in a foreign currency. According to Abor (2005), foreign exchange risk is the risk that an entity will be required to pay more or less than expected as a result of fluctuations in the exchange rate between its currency and the foreign currency in which payment must be made. Foreign exchange risk is commonly defined as the additional variability experienced by a multinational corporation in its worldwide consolidated earnings that results from unexpected currency fluctuations. It is generally understood that this considerable earnings variability can be eliminated partially or fully at a cost, the cost of foreign exchange risk. Companies are exposed to foreign exchange risk if the results of their projects depend on future exchange rates and if exchange rate changes cannot be fully anticipated. According to Madura (2003), companies are generally exposed to three types of foreign exchange risk which are transaction (commitment) exposure, economic (operational, competitive or cash flow) exposure and translation (accounting) exposure. Transaction risk occurs where the value of existing obligations are worsened by movements in foreign exchange rates. Economic risk relates to adverse impact on equity or income for both domestic and foreign operations because of sharp, unexpected change in exchange rate. Translation risk is also related to assets or income derived from offshore enterprise. Foreign exchange risk can be managed in various ways. There are techniques used for hedging against risk. According to Prindl (1976), hedging can be defined as all actions taken to change the exposed positions of a company in one currency or in multiple currencies. Clark, Levasseur, Rousseau (1993) argue that hedging refers to the technique of making offsetting commitments in order to minimise the impact of unfavourable potential outcomes. The risk managers choice of the different types of hedging techniques may be influenced by costs, taxes, effects on accounting conventions and regulation. Foreign exchange risk is mainly managed by adjusting prices to reflect changes in import prices resulting from currency fluctuation and also by buying and saving foreign currency in advance. The main problems firms face are the frequent appreciation of foreign currencies against the local currency and the difficulty in retaining local customers because of the high prices of imported inputs which tend to affect the prices of final products sold locally. Investing in a foreign stock market is equivalent to investing in two assets: foreign stocks and foreign currency. Therefore, the return-risk outcome of a foreign investment can be separated into contributions from the local market factors and the currency factor. The currency impact on the return outcome can be positive or negative, and can be a substantial part of the total return. According to Fatemi (2000), the objectives of risk management include minimise foreign exchange losses, reduce the volatility of cash flows, protect earnings fluctuations, increase profitability and ensure survival of the firm. Conclusion and Recommendation Risk taking is essential for any organisation in the global environment. Therefore, organisations need to understand the nature of the risks they meet and prepare to manage them appropriately. Evaluating significance by estimating potential damage and possibility of events is often not an exact science, and sometimes based on best guesses. However, monitoring and managing significant exposures of risk is vital in globalisation of today business strategy as many factors in our environment are changing with extreme speed. McDonald is one of the biggest and most successful international franchise companies in the world. The research indicates that the way of how company manage risk is outstanding compared to other global companies. Burger King has just imitated what McDonald has done for risk management. Excellent risk management might be the best reason that McDonald has become successful business in the field. In other word, it is hard to find unmanaged area to be in risk in organisation. As a result, well prepared risk management of company and flexibility for changing environment are bringing to organisation benefits. However, there are some unanticipated other risks still may occur. For example, McDonalds size of business could be obstacle of effective hedging. International service organisation such as McDonald must consider the opportunity cost of international expansion. Being more flexible and international expansion might be a benefit to get wider market customers. On the other hand, this might cause of taking risks. It therefore certainly requires a thorough analysis of the factors such as the details on key current economic environment for the country, the main competitors, demand characteristics and trends, contribution of the project to shareholder value, the level of risk and potential difficulty for the organisation. Moreover, the company need to consider that competitors are not just other fast food chain restaurant. It means that company should put lots of effort for analysing other companies. For example, variety of more relevant menu can be developed. Furthermore, the research indicates that the company should be well aware of importance that steady rise of profitability and share price. Therefore, company manage for financial strength by reducing capital spending and using the money remaining after capital expenditures to pay debt and return cash to shareholders. The research also shows that changes in exchange rates generally impact the outcomes negatively. That is why it needs to be managed properly. Therefore, global organisation management must consider commitments for innovation and flexibility to enhance positive risk management effects.

Censorship and Information Privacy Policies in Eastern Asia and the Uni

Censorship and Information Privacy Policies in Eastern Asia and the United States of America Introduction Fifteen or twenty years ago, no one would have been able to predict the magnitude of the impact that the evolution of computer internetworking technologies has had on the world. The advancement of computers and networking technologies, as well as the constant flow of new innovations has forever changed the way the human race communicates. People across the globe have been given a medium through which they can express their ideas and beliefs freely†¦for the most part. Many cultures span this great planet of ours, each with different cultural, spiritual and governmental beliefs. Some of these cultures share common beliefs, but as far as censorship and information privacy are concerned, there are some notable differences. Here in the United States, Internet communication is a way of life. Instant messaging, e-commerce, and World Wide Web surfing are staples in many American’s lives. Citizens are allowed to post web pages containing various types of material with minim al fear of governmental interference. On the contrary, East Asian countries such as China and Singapore are subject to far more intense scrutiny. While it would be easy to judge these sorts of censorship and privacy invasion policies as being immoral, there is definitely more to these policies than meets the eye. Censorship and Information Policies in the USA The United States has been a breeding ground for many of the major developments in the realm of internetworking. With the releases of these technologies come practical applications for them in the consumer world. Once computer networks became affordable for the general public, the World Wid... ...he beauty of the study of philosophy and ethics allows there to be different points of view; this case is no different. References Aneki.com (Facts taken from CIA World Factbook) http://www.aneki.com/facts/Singapore.html Ang, Peng Hwa. Nadarajan, Berlinda. June 1996. Censorship of the Internet: A Singapore Perspective. http://0-portal.acm.org.sculib.scu.edu/ft_gateway.cfm?id=228520&type=pdf&coll=portal&dl=ACM&CFID=20568552&CFTOKEN=95543504 Tan, Zixiang (Alex). Foster, William. Goodman, Seymour. China's State-coordinated Internet Infrastructure http://0-portal.acm.org.sculib.scu.edu/ft_gateway.cfm?id=303861&type=pdf&coll=portal&dl=ACM&CFID=20568552&CFTOKEN=95543504 Wiese, Kelly. April 27, 2004. USA Today Missouri tracks scofflaws via pizza-delivery databases. http://www.usatoday.com/tech/news/internetprivacy/2004-04-27-pizza-no-privacy_x.htm