Elements of Macro-Environment - Free Essay Example

Sample details Pages: 15 Words: 4438 Downloads: 4 Date added: 2017/09/21 Category Advertising Essay Type Argumentative essay Level High school Did you like this example? Macroenvironmental Forces 1. Major external and uncontrollable factors that influence an organizations decision making, and affect its performance and strategies. These factors include the economic, demographics, legal, political, and social conditions, technological changes, and natural forces. Don’t waste time! Our writers will create an original "Elements of Macro-Environment" essay for you Create order 2. Factors that influence a companys or products development but that are outside of the companys control. For example, the macro environment could include competitors, changes in interest rates, changes in cultural tastes, or government regulations. An organizations macroenvironment consists of nonspecific aspects in the organizations surroundings that have the potential to affect the organizations strategies. When compared to a firms task environment, the impact of macroenvironmental variables is less direct and the organization has a more limited impact on these elements of the environment. Macroenvironmental variables include sociocultural, technological, political-legal, economic, and international variables. A firm considers these variables as part of its environmental scanning to better understand the threats and opportunities created by the variables and how strategic plans need to be adjusted so the firm can obtain and retain competitive advantage. The macroenvironment consi sts of forces that originate outside of an organization and generally cannot be altered by actions of the organization. In other words, a firm may be influenced by changes within this element of its environment, but cannot itself influence the environment. The curved lines in Figure 1 indicate the indirect influence of the environment on the organization. SOCIOCULTURAL FACTORS The sociocultural dimensions of the environment consist of customs, lifestyles, and values that characterize the society in which the firm operates. Socio-cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society. Sociocultural factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitudes toward social responsibility are examples of sociocultural variables. POPULATION CHANGES Changes in population demographics have many potential consequences for organizations. As the total population changes, the demand for products and services also changes. For instance, the decline in the birthrate and improvement in health care have contributed to an increase in the average age of the population in the United States. Many firms that traditionally marketed their products toward youth are developing product lines that appeal to an older market. Clothing from Levi Strauss Co. was traditionally popular among young adults. While its popularity in this market has waned, the firm has been able to develop a strong following in the adult market with its Dockers label. Other firms are developing strategies that will allow them to capitalize on the aging population. Firms in the health-care industry and firms providing funeral services are expected to do well given the increasing age of the U. S. population. They are projected as a growth segment of U. S. industry simply becau se of the population demographics. RISING EDUCATIONAL LEVELS Rising educational levels also have an impact on organizations. Higher educational levels allow people to earn higher incomes than would have been possible otherwise. The increase in income has created opportunities to purchase additional goods and services, and to raise the overall standard of living of a large segment of the population. The educational level has also led to increased expectations of workers, and has increased job mobility. Workers are less accepting of undesirable working conditions than were workers a generation ago. Better working conditions, stable employment, and opportunities for training and development are a few of the demands businesses confront more frequently as the result of a more educated workforce. NORMS AND VALUES Norms (standard accepted forms of behavior) and values (attitudes toward right and wrong), differ across time and between geographical areas. Lifestyles differ as well among different ethnic groups. As an example, the application in the United States of Japanese-influenced approaches to management has caused firms to reevaluate the concept of quality. Customers have also come to expect increasing quality in products. Many firms have found it necessary to reexamine production and marketing strategies to respond to changes in consumer expectations. SOCIAL RESPONSIBILITY Social responsibility is the expectation that a business or individual will strive to improve the welfare of society. From a business perspective, this translates into the public expecting businesses to take active steps to make society better by virtue of the business being in existence. Like norms and values, what is considered socially responsible behavior changes over time. In the 1970s affirmative action was a high priority. During the early part of the twenty-first century prominent social issues were environmental quality (most prominently, recycling and waste reduction) and human rights, in addition to general social welfare. More than just philanthropy, social responsibility looks for active participation on the part of corporations to serve their communities. The stakeholder approach to social responsibility demonstrates some of the complexities of incorporating socially responsible issues into a firms strategies. Stakeholders are anyone with a stake in the organizations ex istence. Highly visible stakeholders are stockholders, employees, customers, and the local community. Decisions to be responsible and maximize the return to stockholders may require closing an unprofitable plant. However, employees and members of the local community could view this move as socially irresponsible since the move would not benefit the community. TECHNOLOGICAL FACTORS Technology is another aspect of the environment a firm should consider in developing strategic plans. Changing technology may affect the demand for a firms products and services, its production processes, and raw materials. Technological changes may create new opportunities for the firm, or threaten the survival of a product, firm, or industry. Technological innovation continues to move at an increasingly rapid rate. DEMAND Technology can change the lifestyle and buying patterns of consumers. Recent developments in the field of microcomputers have dramatically expanded the potential customer base and created innumerable opportunities for businesses to engage in business via Internet. Whereas computers were traditionally used only by large organizations to handle data processing needs, personal computers are commonly used by smaller firms and individuals for uses not even imagined fifteen years ago. Similarly, new developments in technology led to a reduction in prices for computers and expanded the potential market. Lower prices allow computers to be marketed to the general public rather than to business, scientific, and professional users—the initial market. Technology may also cause certain products to be removed from the market. Asbestos-related illnesses have severely limited asbestos as a resource used in heat-sensitive products such as hair dryers. Further, a number of chemicals that have b een commonly used by farmers to control insects or plants are prohibited from use or require licensure as a consequence of those chemicals appearing in the food chain. PRODUCTION PROCESSES Technology also changes production processes. The introduction of products based on new technology often requires new production techniques. New production technology may alter production processes. Robotics represents one of the most visible challenges to existing production methods. Robots may be used in positions considered hazardous for people or that require repetitive, detailed activities. The consequences for other jobs currently occupied by people are not clear. When production was first automated, although some workers were displaced, new jobs were created to produce and maintain the automated equipment. The impact of robotics on jobs is in large part a function of the uses made of the technology and the willingness of workers to learn to use new technology. In some industries, use of robots during the early 2000s increased production and efficiency but resulted in significant numbers of job losses. However, technological innovation can also result in increased job growth. F or example, Ford Motor Companys $375-million technology update to its Norfolk assembly plant to build its 2004 F-150 resulted in the ability to build more models on its assembly line and consequently created about 270 new jobs, an 11 percent increase. EVALUATING TECHNOLOGICAL CHANGES There is little doubt that technology represents both potential threats and potential opportunities for established products. Products with relatively complex or new technology are often introduced while the technology is being refined, making it hard for firms to assess their market potential. When ballpoint pens were first introduced, they leaked, skipped, and left large blotches of ink on the writing surface. Fountain pen manufacturers believed that the new technology was not a threat to existing products and did not attempt to produce ball-point pens until substantial market share had been lost. Another technology, the electric razor, has yet to totally replace the blade for shaving purposes. Perhaps the difference is that the manufacturers of blades have innovated by adding new features to retain customers. Manufacturers of fountain pens did not attempt to innovate until the ballpoint pen was well established. It is quite difficult to predict the impact of a new technology on an existing product. Still, the need to monitor the environment for new technological developments is obvious. Attention must also be given to developments in industries that are not direct competitors, since new technology developed in one industry may impact companies and organizations in others. POLITICAL AND LEGAL FACTORS The political-legal dimension of the general environment also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time. ATTITUDES TOWARD BUSINESS A pro-business attitude on the part of government enables firms to enter into arrangements that would not be allowed under a more anti-business philosophy. The numerous joint ventures between U. S. nd Japanese automobile manufacturers could have been termed anticompetitive by a less pro-business administration. The release of many acres of government land for business use (logging, mining) angered many environmentalists who had been able to restrict business use of the land under previous administrations. Changes in sentiments toward smoking and its related health risks have altered the publics attitude toward the tobacco industry. These changes have been reflected in many organizations by limiting smoking to designated areas or completely prohibiting it at work. The transformation in attitude has also caused firms within the tobacco industry to modify marketing strategies, encouraging many to seek expansion opportunities abroad. LEGISLATION The legal environment facing organizations is becoming more complex and affecting businesses more directly. It has become increasingly difficult for businesses to take action without encountering a law, regulation, or legal problem. A very brief listing of significant laws that affect business would include legislation in the areas of consumerism, employee relations, the environment, and competitive practices. Many of the laws also have an associated regulatory agency. Powerful U. S. regulatory agencies include the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), and the Securities and Exchange Commission (SEC). Estimates of the cost of compliance vary widely, but could well exceed $100 billion annually. Many of these costs are passed to consumers. However, costs of legal expenses and settlements may not be incurred for years and are not likely to be paid by consumers of the product or owners of the company when the violation occurred. Still, potential legal action often results in higher prices for consumers and a more conservative attitude by business executives. LEVELS OF GOVERNMENT INFLUENCE We generally speak about the government as referring to the federal government. It is the federal government that passes and enforces legislation concerning the entire country. Actions by the federal government affect a large number of firms and are consistent across state boundaries. Environmental analysis, however, should not overlook actions by both state and local governments. Regulations concerning many business practices differ between states. Tax rates vary widely. Laws regarding unionization (e. g. , right-to-work states) and treatment of homosexual workers differ between states. Local governments have the potential to affect business practices significantly. Some local governments may be willing to provide incentives to attract business to the area. Some may build industrial parks, service roads, and provide low-interest bonds to encourage a desirable business to move into the community. Regulatory measures such as building codes and zoning requirements differ significantly between communities. Infrastructure such as electric and sewer services, educational facilities, and sewage treatment capabilities may not be able to accommodate the increased demand associated with certain industries, making that locale unsuitable for establishing some businesses. ECONOMIC FACTORS Economic factors refer to the character and direction of the economic system within which the firm operates. Economic factors include the balance of payments, the state of the business cycle, the distribution of income within the population, and governmental monetary and fiscal policies. The impact of economic factors may also differ between industries. BALANCE OF PAYMENTS. The balance of payments of a country refers to the net difference in value of goods bought and sold by citizens of the country. To decrease the dollar value of goods imported into a country, it is common practice to construct barriers to entry for particular classes of products. Such practices reduce competition for firms whose products are protected by the trade barriers. Mexico has limited the number of automobiles that can be imported. The purpose of this practice is to stimulate the domestic automobile market and to allow it to become large enough to create economies of scale and to create jobs for Mexican wor kers. A side effect of the import restriction, however, has been an increase in the price and a decrease in the quality of automobiles available to the public. Another potential consequence of import restrictions is the possibility of reciprocal import restrictions. Partially in retaliation to import restriction on Japanese televisions and automobiles by the United States, the Japanese have limited imports of agricultural goods from the United States. Lowering trade restrictions as a means of stimulating the economy of a country may meet with mixed results. The North American Free Trade Agreement (NAFTA) has opened the borders between the United States, Canada, and Mexico for the movement of many manufacturers. Government officials in the United States argue the results have been positive, but many local communities that have lost manufacturing plants question the wisdom of the agreement. As discussed in an article by Susan Schmidt in World Trade magazine, issues that stemmed from r egulatory agencies and national security measures were barriers to free trade during the early part of the twenty-first century, demonstrating that NAFTA alone could not clear the path for companies and countries to take advantage of free trade benefits. BUSINESS CYCLE. The business cycle is another economic factor that may influence the operation of a firm. Purchases of many durable goods (appliances, furniture, and automobiles) can be postponed during periods of recession and depression, as can purchases of new equipment and plant expansions. Economic downturns result in lower profits, reductions in hiring, increased borrowing, and decreased productivity for firms adversely affected by the recession. Positive consequences of recessions may include reductions in waste, more realistic perceptions of working conditions, exit of marginally efficient firms, and a more efficient system. Some organizations may benefit from an economic downturn. Postponed purchases may result in the need to service existing products. An owner electing to keep a used automobile rather than buying a new one may need to have it repaired, thus creating an increased demand for automobile mechanics and replacement parts. Limited job opportunities during downturns also encourage individuals unable to get satisfactory jobs to consider going to college or joining the armed services. INCOME DISTRIBUTION. The distribution of income may differ between economic systems. Two countries with the same mean (per capita) income levels may have dramatically different distributions of income. The majority of persons in the United States are considered middle income, with only a relatively small number of persons having exceptionally high or low incomes. Many developing countries have citizens who are either extremely wealthy or extremely poor. Only a few persons would qualify as middle class. Therefore, although both countries had the same mean income, opportunities to market products to the middle clas s would be greater in the United States. TRANSFER PAYMENTS. Transfer payments (e. g. , welfare, social security) within the United States change the distribution of income. Transfer payments provide money to individuals in the lower income brackets and enable them to purchase goods and services they otherwise could not afford. Such a redistribution of income may not be the practice in other economic systems. Thus, large numbers of people in need of basic goods and services do not assure that those people will be able to purchase such goods and services. MONETARY AND FISCAL POLICIES. Monetary and fiscal policies utilized by the federal government also influence business operations. Monetary policies are controlled by the Federal Reserve System and affect the size of the money supply and interest rates. Fiscal policies represent purchases made by the federal government. For example, allocation of funds to defense means expenditures for weapons and hardware. If appropriations had gone to the Health and Human Services and Education Departments instead, much of the money would have constituted transfer payments. The primary beneficiaries of such a fiscal policy would be firms in the basic food and shelter businesses. No matter how government expenditures are reallocated, the result is lost sales and cut budgets for some companies, and additional opportunities for others. Though unpopular in the United States, another aspect of government fiscal policy is deficit spending, which may allow government expenditures to rise, but can also influence interest rates, exchange rates, and other economic trends. INTERNATIONAL FACTORS A final component of the general environment is actions of other countries or groups of countries that affect the organization. Governments may act to reserve a portion of their industries for domestic firms, or may subsidize particular types of businesses to make them more competitive in the international market. Some countries may have a culture or undergo a change in leadership that limits the ability of firms to participate in the countrys economy. As with the other elements of the macroenvironment, such actions are not directed at any single company, but at many firms. ECONOMIC ASSOCIATIONS. One of the most recent joint efforts by governments to influence business practices was NAFTA. The agreement between the United States, Canada, and Mexico was intended to facilitate free trade between the three countries. The result has been a decrease in trade barriers between them, making it easier to transport resources and outputs across national boundaries. The move has been beneficial to many businesses, and probably to the economies of all three countries. In most economic associations, preference is also given to products from member countries at the expense of products from nonmembers. Probably the best-known joint effort by multiple countries to influence business practices is the Organization of Petroleum Exporting Countr ies (OPEC). The formation of OPEC, an oil cartel including most major suppliers of oil and gas, led to a drastic increase in fuel prices. Rising fuel prices had a significant effect on the demand for automobiles worldwide. The increases in oil prices also contributed to inflation all over the world. OPECs early success encouraged countries producing other basic products (coffee beans, sugar, bananas) to attempt to control the prices of their products. A more recent example of an economic association serving multiple countries was the International Coffee Organization (ICO). The United States rejoined the ICO 2004 in hopes of fostering sustainability and competition across countries and the industry. The United States works with the Honduras, Mexico, and Nicaragua, among others, as part of this organization. INTERGOVERNMENTAL RELATIONS. Changing relationships between the United States and other countries may alter the ability of firms to enter foreign markets. The United States estab lishment of trade relations with China in the 1970s created opportunities for many firms to begin marketing their products in China. The rise of Ayatollah Ruhollah Khomeini to power in Iran altered the lives of many Iranian citizens. Wine, vodka, music, and other forms of entertainment were prohibited. Black markets provided certain restricted items. Other products, such as wine, began to be produced at home. Anti-American sentiments throughout the country showed the hostility of many citizens. Non-American firms thus had an opportunity to capitalize on the anti-American sentiments and to provide goods and services formerly provided by U. S. firms. CULTURAL DIFFERENCES. In different countries, sometimes even within a country, there are substantial differences in attitudes, beliefs, motivation, morality, superstition, and perception, as well as other characteristics. Geert Hofstede (b. 1928) developed a model in which worldwide differences in culture are categorized according to five dimensions. These dimensions include: * Power distance—the degree of inequality among people which the population of a country considers normal. * Individualism vs. collectivism—the degree to which people in a country prefer to act as individuals or as members of a group. Masculinity vs. femininity—the degree to which values like assertiveness, performance, success, and competitiveness are used to guide decisions versus values like the quality of life, warm personal relationships, service, and solidarity. * Uncertainty avoidance—the degree to which citizens of a country prefer structured over unstructured situations, rigidity of procedures, or willingness to accept risk and potential failure. * Time orientation—the extent to which decisions are based on long-term orientation versus short-term orientation, past versus present versus future, and punctuality. Hofstede argues that U. S. management theories contain a number of idiosyncrasies that are n ot necessarily shared by managers in other cultures. Approaches to motivation and leadership, for example, differ widely throughout the world. Citizens of Japan tend to put greater importance on collective effort and working as a team member. Individual recognition is not desired. It is viewed as contradictory to being a good team member. Similarly, in other countries, high tax rates may make bonuses and other forms of monetary compensation less attractive and less motivating than in the United States. Hofstede argues that employees and products are more readily transferred between countries sharing similar cultures. The macroenvironment consists of forces that originate outside of an organization and generally cannot be altered by actions of the organization. Dimensions of the macroenvironment consist of sociocultural factors, technological factors, political-legal elements, economic factors, and international elements. A firm needs to study these elements of its environment, as th ey have the potential to affect how the organization should operate to attain and maintain its competitive advantage. Economy * GDP per capita * economic growth * unemployment rate * inflation rate * consumer and investor confidence * inventory levels * currency exchange rates * merchandise trade balance * financial and political health of trading partners * balance of payments * future trends [edit] Government * political climate amount of government activity * political stability and risk * government debt * budget deficit or surplus * corporate and personal tax rates * payroll taxes * import tariffs and quotas * export restrictions * restrictions on international financial flows edit] Legal * minimum wage laws * environmental protection laws * worker safety laws * union laws * copyright and patent laws * anti- monopoly laws * Sunday closing laws * municipal licences * laws that favour business investment [edit] Technology * efficiency of infrastructure, including: roads, ports, airports, rolling stock, hospitals, education, healthcare, communication, etc. * industrial productivity * new manufacturing processes * new products and services of competitors * new products and services of supply chain partners any new technology that could impact the company * cost and accessibility of electrical power [edit] Ecology * ecological concerns that affect the firms production processes * ecological concerns that affect customers buying habits * ecological concerns that affect customers perception of the company or product [edit] Socio-cultural * demographic factors such as: o population size and distribution o age distribution o education levels o income levels o ethnic origins o religious affiliations * attitudes towards: o materialism, capitalism, free enterprise individualism, role of family, role of government, collectivism o role of church and religion o consumerism o environmentalism o importance of work, pride of accomplishment * cultural structures including: o diet and nutrition o housing conditions GLOBAL BUSINESS ENVIRONMENT:- It is very natural that every business industries in the world want to grow rapidly with minimal cost of producing product services. To achieve the quality in the minimum cost is very easy by adopting the latest trends prevailing in the business world, outsourcing the work is one of the heapest mode to save money as well as precious time. World business is consist of large number of big companies as well short medium scale industries and all needs to grow faster, in order to get the quality work done in the low costs they use to have the advantageous services of the offshore development centers. Offshore development centers has become today’s most revenue generating concepts for outsourcing firms of the modern business world as they are providing cheap IT services such as software development and other web related services. Offshore development centers are the source of complete set of ready made quali fied professionals to work as per requirements of the outsourcing firm. Customized services at low cost is one of the property of offshore centers for becoming most popular concept of global business as well as offshore development centers are working for almost all the industries of the business world such as Banking Finance, Retail, Travel, HR and manufacturing etc. Reason for the popularity in the rapid pace is matching approaches of the both the involved entities in the business. Out sourcing firms use to get skilled professionals according to the process of their business and on the other hand development centers use to get good price for the quality work. Well equipped with suitable technology devices and advanced infrastructure in the development centers are one of the strong reason for the attraction of the outsourcing firms. There are multiple facilities provided by the offshore companies to the outsourcing firms such as internet marketing and SEO SEM services as well as variety of supportive IT services. Offshore companies or centers has become popular among well settled outsourcing firms as well those firms who are at initialization phase of their development, provision of the customized IT services for the integration of the new advanced IT concepts in the existing business as well as all the asked IT services for the newly set businesses by the offshore centers. Team of Qualified and talented professionals with compatible abilities with business nature and perfect coordination with changing business environment of the business industries of the world. There are an number of offshore centers are available in the different parts of the world providing the IT services to the outsourcing firms, these firms use these offshore centers according to their best suitable conditions. To fulfill all the requirements of the outsourcing firms, offshore companies have opened their various offices at distinct parts of the world to provide the customized service s to their clients. Both the involved entities are serving each other to achieve the maximum level of profits as well as raising the standards of the global business world.

Should Homosexuals Be Allowed Adopt - 1512 Words

Teirra Thomas Professor Parks ENG 101, Documented Research Paper 18 November 2014 Should Homosexuals be allowed to Adopt Did you know that Florida absolutely bans homosexuals to adopt children? Over a million people in the United States disagree on same sex marriage. If they disagree with same sex marriage what about when homosexuals want to adopt children. In my opinion it is great that homosexuals want to adopt children, because it is not about who they are being raised by. It is all about if the children are being raised with two parents that love and care about them. If someone does not allow a child to be adopted by an homosexual couple it is discrimination. I think everyone should have a family that they care, love, and will cherish for the rest of their lives. In May of 2012, Obama stated that ‘he believes same-sex couples in all 50 states should be allowed to marry under the equal protection clause of the Constitution (Lavender).’ The federal government have expand some federal benefits in states that legalized same sex marriage. If same sex couples can get married then they shoul d be able to adopt, and conceive children just like any regular couples. Homosexuals can be good parents just like heterosexual couples can. Homosexuals can give their children love and take care of them like a regular marriage heterosexual couple. I believe that same sex couples should have equal rights to adopt just as a heterosexual couples. In 2012, approximately 110,000 childrenShow MoreRelatedEssay on Why should Homosexuals be allowed to Adopt.2042 Words   |  9 PagesSeveral people are opposed to the idea of homosexuals adopting. Nonetheless, homosexuals have an abundance of privileges as many other couples do. Sexual orientation doesn’t have any relevance on your entitlement to adoption. Families are usually the central source of socialization. When we define the word family, a numerous of people would include a mother, father, and at best two children, possibly one child. Truly speaking of a nuclear family, but realistically families take different appearancesRead MoreEssay on Should Homosexual Couples Be Allowed to Adopt Children?702 Words   |  3 PagesOne of the issues that are argued everywhere in the United States of America the most today is whether gay or lesbian couples should be allowed to adopt children. People have different opinions on this kind of issue because some may think, for instance, that child who is raised by gay parents will turn out gay, and so on. However, people forget about childrens happiness although they believe that children will be happier with straight and normal people. Who said so? Why do peopleRead MoreGay Couples Adopting1042 Words   |  5 PagesHomosexuals must be allowed to adopt children just like any other couple who want to do the same thing. A child needs love, respect and a home in which they can assure themselves that there will be someone there to care for them. As in the example, there is no need for a dad and a mom who will always be arguing about the shared custody. Just because their parents are homosexuals does not mean that the child will grow up to be the same. Everyone is different and will grow up to be what they want toRead MoreGay Parenting Essay939 Words   |  4 Pagesmore people with each passing moment. Although homosexual marriage is not allowed in some states, the anatomy of the person, whether male or female, hardly allows them to reproduce without sperm or ovaries. Since gays are not capable of reproducing, then adoption is their next option or sperm donors. The big controversy is wh ether or not homosexuals should be allowed to adopt children or whether the â€Å"step-parent,† which is actually the co-partner, can adopt the birth mother’s child. Adoption is anotherRead MoreGay Adoption Should Be Legal1355 Words   |  6 Pagesfamilies in need to adopt a child in need of a loving family. Many people have had a great ending with adoptions. The families who have adopted have left and created many loving families out there, but now that same sex-couples want to adopt children adoption has becomes very brutal. Same sex-couples are having trouble to get their marriage right now states are banning adoption rights. Although gay adoption could negatively impact the child s life, gay adoption should be allowed and enforced in everyRead MoreShould Homosexuals Have The Same Rights?1106 Words   |  5 PagesShould homosexuals have the same rights as heterosexuals? Regardless of same sex marriage being legal in America, homosexuals have fewer rights than hete rosexuals. All people deserve to obtain the same rights and respect regardless of who they choose to love. People are getting disrespected and mistreated all over America, because of which sex they choose to marry. Whether or not one agrees with a person’s sexual orientation or not, it does not give them a right to disrespect and mistreat them. Read MoreGays Should Have A Positive Impact On A Child s Life1441 Words   |  6 Pagesevolving for Homosexuals and their rights. Every child in foster care, and adoption agencies deserve to have a family regardless of the parents Sexual orientation. The United States is considered a liberal country if that is so, then homosexuals should have the right to adopt a child in the United States. Homosexuals adopting will have a positive impact on a child s life. The child will finally have a stable home and family to grow up in. The article mentions how children adopted by homosexuals are mentallyRead MoreShould Same-Sex Couples Be Allowed to Adopt? Essays838 Words   |  4 PagesHomosexual people have faced many trials and tribulations in pursuit of living a normal and happy life. There are many controversial events and topics that are barriers blocking complete happiness. Although those barriers are in place, the people in the LGBT subculture seem to making the best of every situation. Fighting for their rights and changing laws to protect them are paving the way for a brighter future. In hopes of being normal, many same-sex couples want to have a family and for some theRead MoreShould Same Sex Couples Be Allowed to Adopt?954 Words   |  4 Pages2/8/13 Should Same-Sex Couples Be Allowed To Adopt? As time progresses societies view on certain subjects has become more lenient. One thing that still can cause an uproar seems to be what women decide to do with their children once they become pregnant, whether it be abortion or adoption. Even more controversial on the latter subject seems to be who can and cannot adopt children who are being put up for adoption. This leads to the topic of the argument, should same sex couples be allowed to adoptRead MoreEssay on Same-Sex Parenting1442 Words   |  6 PagesParenting Since the early 1900s, homosexual people have become increasingly popular and greatly resisted. People that are homosexual face barriers placed upon them by the political system and society. Due to these challenges, homosexuals fought to have the same marital and parental rights as heterosexual people. Same-sex adoption is not prohibited in most states in the United States of America and many places worldwide. Family is not determined solely on blood relations and should be legalized in all parts

Auditor Fees and Auditor Independence

Question: Discuss about the Auditor Fees and Auditor Independence. Answer: Introduction The organizations surviving in the economic structure of different countries requires to analyze their business process from time to time in order to maintain a clean and just management and production function. Auditing is one of the major tools for evaluating and inspecting the quality and process system to comply with the needs of the organization. Auditing can be applicable to an entire firm or can be to a specific department or production step. This study is undertaken to find out the various potential threats to the independence of the auditors according to the various situations given in the study and to find out the remedies to these threats to safeguard the auditors interest (Leung et al.2015). The following conditions determine the various potential threats to the following cases: The auditor works for Green Pastures Ltd for a very long time and has a good knowledge about the client. From this situation, it is understood that the independent threat similar to this situation is the familiarity and complacency threat. The auditor has been working with these organizations for a very long time and thus there exists a familiarity between the organization and the audit firm. This familiarity withers away the sense of doubt and hesitation, which should exist within the auditor in order to find out the weaknesses of the firm (Koch, Weber and Wstemann 2012). Auditor in this case develops a sense of overconfidence about their knowledge about the firm. The long-term relationship among the two parties creates a satisfaction among the auditors and thus leads to underestimation of all the caution signs within the firm. It is advisable to bring in fresh and new auditor into the firm, which will be helpful for a better and efficient scrutiny. Still familiarity has the positiv e effects as it creates a better understanding about the clients which creates a better working (Blay and Geiger2013). The second situation refers to a person named Samuel Rose who is a part of an audit team, which audits the Saturn Ltd. After a few weeks of working with the client, he was offered a job by the above-mentioned organization. Samuel Rose was interested in the offer, as he had to join right after the completion of the present audit. This situation complies with the threat of management and employment. The auditor is different from the audit firm and this difference should be maintained. The threat becomes more complex when the present auditor of the firm is offered a job to perform a management role of the firm. In this situation, the Samuel Rose, the present auditor of the firm is employed to work for the organization. This creates a concern because the other member working in the audit team will be unwilling to criticize their former colleague. The second concern is that Samuel Rose being an ex employee of the audit team will have a good knowledge about their audit process and thus wil l be aware of their strengths and weaknesses. Samuel Rose will thus take advantage of this situation and try to give an advantage to the client. The third situation is about a major client named as Fresh Juices Ltd who wants the audit firm to act as a consultant to evaluate the entitys quality control about their product. The problem the audit team uses up the directors feel is that the staffs time by asking irrelevant questions. The independent threat related to this situation is the Economic bonding associated with Fresh Juices Ltd and the audit team. The income of the auditors depends on their clients as they earn a living by working for them. Thus the auditors always tries to keep their clients happy to maintain a healthy relation between them. The auditors also perform non- audit services like in this case surveying the staffs of the firm to compute the quality control of the firm. The auditors try and perform their task as mentioned to them to increase their income. This economic bond can act a threat to the independence of the auditors because these non-audit services performed by the auditors to earn lucrative incomes diminish their class of work in the audit services. The non- audit services performed by the auditors reduce the efficiency of their audit works (DeFond and Zhang 2014). The fourth situation refers to a client named Excelsior Ltd. The financial director Susan James retired and Steve Price who is also a long time friend of the audit manager Geoff Holmes replaced him. Geoff Holmes was also the best man in Steves wedding. The situation suggests that these two people are very closely connected and thus the threat associated with this situation is Social Bonding. There exists a long term friendship between the audit manager and the financial director of the organization. Thus the objectivity from the auditors side decreases. The biasness is grounded on the psychology theory and takes place due to close relationships and their interests cannot be separated from each other. The audit manager will be biased and his work of audit will not give out the original result. The last case concerned about My Super Ltd whose taxation work is rejected and has been referred to the Superannuation Complaints Tribunal and MSL. The threat concerned with this case is Litigation, which refers to the disputes between the taxation treatment of material amount, which led to the creation of a legal action where the organization has been asked to show its treatment to the concerned government body. The rejection of the taxation sheet will create a dispute between the auditors and the clients which can also be taken as far as the court (Porter, Simon and Hatherly 2014). The safeguards associated with the above threats are as follows: The application of a mandatory rotation policy about changing the auditor of a firm after a certain time span will eliminate the familiarity and complacency from the audit services. The appointment of a new auditor will give an efficient evaluation of the performance of the organization without any malpractice. The second threat can be eliminated by implementing the remedy to modify the selection process for the appointment of the management employees and the auditors, which makes them more liable to the shareholders and the management. The shareholders need to be given more power within the organization to directly appoint new employees and external auditors (Dhaliwal et al. 2015). The third situation can be controlled by limiting the non-audit services by the audit firms. A proper law needs to be passed to stop the non-audit services of the organization and thus increasing the efficiency of the audit services from the auditors providing a proper and just evaluation of the business process. The fourth situation can be stopped is by introducing the mechanism of better disclosure where the investors and the shareholders should be provided with proper knowledge about the people appointed and their economic dependence. The investors need to know the relation between the management and the auditors and their effects (DeFond and Zhang 2014). The process of market forces can reduce the last situation where there exists a lot of external auditors in the market and thus any client has the power to appoint any other auditor if there exists a dispute between the client and the auditors which can lead to any litigation. This situation can eliminate any discrepancy from the auditors side and they would work harder to exhibit higher audit standards (Koch, Weber and Wstemann 2012). Situation Threat Justification Safeguard Assessment of audit independence Audit practices for Green Pastures Ltd working for a long time and having a long term relationship Familiarity and Complacency The auditor has been working for the firm for a very long time and so has a good knowledge about the audit process and the business process Mandatory rotation rules The audit independence can be maintained by appointing new auditor into the firm which will provide a new outlook towards the weaknesses of the firm and will properly scrutinize the working process to make the organization more efficient. Samuel Rose an auditor auditing for Saturn Ltd has been offered job by Saturn Ltd Management and employment Samuel Rose has been working as an auditor and examining the process of Saturn Ltd, which led to the Saturn Ltd appointing him to the firm as he has good knowledge about the audit process. Modifying the Selection Process If the selection process is modified by giving some power to the shareholders to appoint their new employees and external auditors will lead to creation of just audit process and will increase efficiency Fresh Juice Ltd to review its quality control of its product has asked to evaluate the quality control process. The economic bond Fresh Juice Ltd to review its quality control has asked the audit team to evaluate this process and thus asking them to perform a non-audit service for the organization Limitation on the non-audit services. If the non-audit services of the organization are eliminated he performance of the auditors will be much more better for the audit services creating independence to the auditors. Steve Price was appointed as the new finance director after the retirement of Susan James. Mr. Price is also friend of the audit manager of the firm. Taxation sheet of material amount rejected by the tribunal Social Bond Litigation Having a close friendship between the auditor and finance director will create a sense of biasness among proceedings of the business and the work output will not be according the original proceedings of the business. A mistake in the tax sheet has led to its rejection in the Taxation office and thus has created a dispute between the auditors and the clients. Better Disclosure Market Forces The disclosure about the employment process of the organization will demonstrate a true working sense without any biasness in the business The availability of many external auditors in the market will create a competition for the auditors and thus increasing their standard of work and creating auditor independence. Table 1: Independence of Auditors (Source: Eilifsen et al. 2013) Conclusion The above study determines the various conditions, which arises in the normal economic market during the audit process and defines the various potential threats which affect the auditor independence and also the remedies which can be implemented to eliminate these threats and create a proper auditing practice. Reference List Blay, A.D. and Geiger, M.A., 2013. Auditor fees and auditor independence: Evidence from going concern reporting decisions.Contemporary Accounting Research,30(2), pp.579-606. Carson, E., Fargher, N.L., Geiger, M.A., Lennox, C.S., Raghunandan, K. and Willekens, M., 2012. Audit reporting for going-concern uncertainty: A research synthesis.Auditing: A Journal of Practice Theory,32(sp1), pp.353-384. Church, B.K., Jenkins, J.G., McCracken, S.A., Roush, P.B. and Stanley, J.D., 2014. Auditor independence in fact: Research, regulatory, and practice implications drawn from experimental and archival research.Accounting Horizons,29(1), pp.217-238. DeFond, M. and Zhang, J., 2014. A review of archival auditing research.Journal of Accounting and Economics,58(2), pp.275-326. Dhaliwal, D.S., Lamoreaux, P.T., Lennox, C.S. and Mauler, L.M., 2015. Management Influence on Auditor Selection and Subsequent Impairments of Auditor Independence during the Post SOX Period.Contemporary Accounting Research,32(2), pp.575-607. Dogui, K., Boiral, O. and Heras Saizarbitoria, I., 2014. Audit fees and auditor independence: The case of ISO 14001 certification.International Journal of Auditing,18(1), pp.14-26. Eilifsen, A., Messier, W.F., Glover, S.M. and Prawitt, D.F., 2013.Auditing and assurance services. McGraw-Hill. Koch, C., Weber, M. and Wstemann, J., 2012. Can auditors be independent? experimental evidence on the effects of client type.European Accounting Review,21(4), pp.797-823. Leung, P; Coram, P; Cooper, B; Richardson, P; Modern Auditing Assurance Services 2015; 6th Ed; Wiley Porter, B., Simon, J. and Hatherly, D., 2014.Principles of external auditing. John Wiley Sons.

Melancholy And Hamlet Essays - English-language Films,

Melancholy And Hamlet Melancholy and Hamlet In the play Hamlet, written by William Shakespeare, Hamlet is greatly affected in his thoughts and his actions by his ever changing state of melancholy. Melancholia is a medical term categorized by extreme depression, apathy, and withdrawal. Hamlet gives in to this illness and throughout the play he shows several characteristics of it. Hamlet being so self-centered steers him away from performing the vigorous duties he has been chosen to do by the ghost of his father and also himself. Hamlet develops a wariness of family and companions that keeps him from incriminating himself and destroying his plans for revenge. In the end, it is Hamlet's perseverance and determination that keeps him focused on his plan and gives him a relentlessness with which he pursues his goal. The conduct of Hamlet causes him to become the exact definition of melancholy, as defined by the medical field over the years. The time in which Shakespeare lived and wrote this play was a time where the medical profession was just beginning. The people depended on ancient theories and practices that are no longer used in the medical field today. It was believed that black bile was a fluid found in the body. Any person with an excess amount of blood or fluids was believed to be in the state of melancholy. Hamlet was viewed as being composed of too much black bile which placed him as melancholic. Skepticism, a stubborn outlook and attitude about life, self absorption, and excessive gloomy response to recent events are all symptoms of melancholy. All of these symptoms apply to Hamlet during the course of the play. It is the fulfillment of these symptoms that proves Hamlet is in fact melancholic. Hamlet's constant thoughts and feelings about himself come from his state of melancholy. His continuos introspection as to how he is thinking, behaving, and feeling at any given time keep him from acting swiftly on the commands given to him by the ghost of his father. During all this time Hamlet still shows occasional signs of intelligence as he should. Hamlet is after all, an educated man. He refuses to perform his given duty without first questioning each area of the task at hand. He ponders the consequences of the task then he questions his very own position on the issue. Because of this, his ?thinking too precisely on th' event? (IV, iv, 41) has taken so long that he misses the opportunity to complete his responsibility. Hamlet is led to even more contemplation before he is able to move on to the secondary plan of action resulting from the failure of the first. You can see that Hamlet is able to recognize his pattern of behavior when he says, ?I do not know why yet I live to say ?This thing's to do:' sith I have cause and will and strength and means to do ?t? (IV, iv, 43-6). By seeing the source of his inability to act, Hamlet is now capable of correcting it. Now Hamlet gives in to his passions rather than debating them, which in turn brings more positive actions than lengthy excuses for his failure to act. Hamlet's melancholy is also displayed by his overwhelming emotion for any mood he is currently in. Biggest of all is the death of his father, after which he sinks into a great depression that traps his mind and spirit for the rest of the play. It is more complicated than a simple state of mourning. Hamlet has become obsessive about preserving the memory and integrity of the former king. Hamlet is the last person in the kingdom to continue mourning for his father, and shows his sadness by dressing only in ?nighted color? (I, ii, 68). While his mother sees his choice of clothing as showing his complete emotion, Hamlet tells her that it ?does not denote me truly? (I, ii, 83). His real emotions are much stronger than the simple decision of what to wear. The players come to put on a play and Hamlet focuses all of his time and energy on the performance. He wants to achieve his goal of catching ?the conscience of the king? (II, ii, 548). Hamlet has once again forgotten everything he was concerned with and is now only interested in one small part of his life. Hamlet's behavior shows that he is wrapped up in the mood