Exposing the Gaps—How Does the United States Compare in Key Determinants of Health?
When the health of a population is measured by various mortality indicators such as life expectancy, infant or child mortality, or the chances of surviving to retirement, surprising trends emerge. Health, as measured by longevity, appears to be declining in substantial segments of the U.S. population, especially for women (United Health Foundation, 2013). These findings receive little attention in most public health efforts or in the mainstream media, at least in the United States.
For this Assignment, you select health indicators used to measure the health of the U.S. population and contrast them to other countries around the world. You compare various determinants of health within different states in the United States as well as across continents.
To prepare for this Assignment, complete the readings and view the media in your Learning Resources. Install the free Gapminder Desktop tool and experiment plotting different health outcomes against various determinants already loaded along the two axes. Using the various health ranking resources provided, select two key health indicators for which the United States ranks lower than other nations.
Note: In grading every required Application Assignment, your Instructor uses an Application Assignment Rubric, located in the Course Information area. Review this rubric prior to completing your assignment.
The Assignment (3–4 pages):
Provide a brief description of the two health indicators you selected, citing specific sources.
Explain how the U.S. ranks on these indicators compared to other nations.
Explain two factors that might influence those rankings and the relative standing of the U.S. compared to the other nations.
Determine which two states rank the best and which two states rank the worst for those indicators.
Describe factors you believe might contribute to those relative rankings among the states.
Share any insights you gained or conclusions you drew as a result of making these comparisons.
Expand on your insights utilizing the Learning Resource
SAMPLE ANSWER
How U.S. Compares in Key Determinants of Health
The two health indicators selected are life expectancy and infant mortality rates. Life expectancy is understood as the expected number of years of life that is remaining at a particular age. Life expectancy is extensively utilized in measuring health even though it only takes into consideration the length of life of people in the country and not their quality of life (Kliff, 2013). Infant mortality rate (IMR) is basically the rate of deaths amongst children who are below the age of 1 year, for each 1,000 live births averaged over 3 years (Castillo, 2013).
IMR = (Number of child deaths in a year / No. of live births in the same year) x 1000.
Relative to other nations, America is ranked 26th in life expectancy. This is illustrated in the table below:
Table 1: Life expectancy in the U.S. compared to other countries (Kliff, 2013)
Rank
Country
Life Expectancy
1
Switzerland
82.8
2
Japan
82.7
3
Italy
82.7
4
Spain
82.4
5
Iceland
82.4
6
France
82.2
10
Norway
81.4
11
Netherlands
81.3
12
New Zealand
81.2
15
United Kingdom
81.1
17
Canada
81.0
18
Germany
80.8
23
Belgium
80.5
24
Slovenia
80.1
25
Denmark
79.9
26
United States
78.7
27
Chile
78.3
28
Czech Republic
78.0
The life expectancy for women in America is 80.7 and 75.6 for men (Castillo, 2013). Although the life expectancy in the United States is increasing, it is doing so a lot more slowly compared to other developed countries. Two factors that may influence the life expectancy rankings are violence and disease. In essence, life expectancy in the U.S is lowest amongst industrialized countries because of violence and disease. The violence is partly because of the widespread possession of guns as well as the practice of storing firearms in unlocked places at home (Castillo, 2013). Besides the impact of gun violence, people in the United States get involved in more accidents involving alcohol and consume the most calories among high-income nations. Moreover, heart disease, diabetes in addition to lung disease are more prevalent in the U.S. than in other developed countries (Castillo, 2013).
Figure 1: Infant Mortality Rates of U.S. compared to other high-income nations (Kliff, 2013)
In America, the infant mortality rate is more than 2 times that of peer nations such as Sweden and Japan (Kliff, 2013). Two factors that may influence those infant mortality rate rankings include poor nutrition of American babies compared to babies from other high-income countries, and inadequate nutrition/under nutrition of American babies compared to babies in other developed nations (Castillo, 2013).
Table 2: the two best and two worst states in the U.S. by infant mortality rates (Statistica, 2013)
Ranking
State
Deaths per 1,000 live births
States that rank the best
1
New Hampshire
4.42
2
Minnesota
4.55
States that rank the worst
49
Alabama
8.49
50
Mississippi
9.86
The above statistic indicates the infant mortality rates of the 2 best and 2 worst states in the United States as of the year 2012. The State of New Hampshire had the best rate which was 4.42 for every 1,000 live births prior to the age of 1 year, followed by Minnesota with 4.55. Alabama and Mississippi had the worst with 8.49 and 9.86 respectively (Statistica, 2013). Factors that may contribute to those relative rankings among the states include poor nutrition as well as under nutrition considering that in terms of child food insecurity rates, the state of Mississippi ranks at the bottom and neighboring Alabama is ranked 44th out of 50 states. Conversely, the top 2 states in terms of child food insecurity rates are New Hampshire and Minnesota (Ochs, 2014).
Table 3: U.S. states by life expectancy (Greenwood, 2014)
Ranking
State
Life Expectancy
The Best States
1
Hawaii
81.3
2
Minnesota
81.1
Worst States
50
West Virginia
75.4
51
Mississippi
75.0
At 81.3 years, the state of Hawaii has the longest life expectancy exceeding the national average by more than 2 years. It is followed by Minnesota with a life expectancy at birth of 81.1. Out of all the U.S. territories, Mississippi ranks with the shortest life expectancy having 75.0 (Greenwood, 2014). The two main factors which essentially contribute to those ranking include diseases such as diabetes, as well as the quality of health care in the state, bearing that the state of Minnesota has more doctors per capita compared to West Virginia or Mississippi. Having more doctors per capita ensures the provision of adequate, and better quality health care for citizens of that state (Ochs, 2014).
In sum, America ranks poorly in terms of infant mortality rates as well as life expectancy compared to other developed countries. Two factors that may influence those infant mortality rate rankings include poor nutrition and inadequate nutrition. The factors that contribute to the life expectancy rankings are violence – gun violence in particular –, and disease particularly heart disease and lung disease. The southern states of West Virginia, Mississippi, and Alabama rank at the bottom in terms of life expectancy while Minnesota and Hawaii are at the top. In infant mortality, New Hampshire and Minnesota are at the top while Alabama and Mississippi are at the bottom.
References
Castillo, M. (2013). Report: U.S. Life Expectancy Lowest among Wealthy Nations due to Disease, Violence. CBSNews.
Greenwood, K. (2014). The 15 U.S. States with the Longest Life Expectancies. Boston, MA: CRC Press.
Value Chain Analysis
Consider the following scenario:
Miguel owns a Mexican restaurant. He has well-established relationships with local suppliers and has fresh produce delivered daily. Carefully trained cooks craft authentic Mexican food in state-of-the-art kitchen using a well-refined and systematic process. They interact seamlessly with fast, friendly wait staff who typically deliver food in fifteen minutes or less to hungry customers. Customers come in large numbers for good food at a good price. Miguel carefully tracks customer preferences to alter menus and offer specials.
Despite being a small business, Miguel has successfully coordinated various internal activities and established external relationships in ways that create value for his customers.
A well-functioning work team carefully assesses the strengths and weaknesses of each team member, assigning activities to leverage their individual strengths. However, team members also carefully coordinate tasks to ensure they combine their individual efforts in effective ways. Effective organizations do the same by carefully selecting a strategy that maximizes the strengths in performing various activities. They exploit relationships between internal activities to create a chain of activities that maximizes the value of their product or service for customers. Companies large and small can derive additional benefit from combining a strong internal value chain with those of external partners to establish a value system.
To prepare, select a company with which you are very familiar or for which you can easily obtain information. You may wish to use the organization you are thinking of proposing for the Sustainable Solutions Paper (SSP), which you will complete throughout the course. This would allow you to repurpose information from the Discussion for a portion of your SSP. If you wish to take advantage of this opportunity, please review the SSP template located in this week’s Learning Resources to ensure the organization you choose for this Discussion also satisfies the SSP requirements. Review this week’s Learning Resources, particularly Exhibit 1 in Porter and Millar’s article “How Information Gives You Competitive Advantage.” You can use this chart to guide your value chain analysis for this post.
Critique discussion #1’ analyses by identifying additional strengths and weaknesses of the analyses and offering suggestions for addressing those weaknesses.
•Offer insight into additional potential linkages among areas of the value chain in your colleagues’ organizations that they may have overlooked, and ask a question to expand their thinking on the subject.
•Offer additional insight into the potential strategic significance of the value chain in your colleagues’ organizations and ask a question to expand their thinking on the subject.
•Answer one of the questions posed by your colleagues in their posts.
Discussion #1
Peter Nanga,
Vimal Shah and his elder brother Tarun, in 1985 saw the potential value in all the goods that could be developed from cotton seeds. They started small by developing oil pressing factory where they extracted oil which they would use to produce edible oils and soap. They contracted farmers to grow the produce, cotton, sunflower and corn whose seeds were their main raw materials. As Senge (2010) explained that real innovation opportunities lies in the creation of new products that break away from the dependency on conventional oil and gas entirely. For Bidco it was to totally shift from relying on cotton for their cotton garments to edible oil manufacturing from crude palm oil. At this point, BIDCO which was previously a garment manufacturing factory shifted and became an edible oil and soap producing factory. This was a complete disruptive shift. They made their bar soap whiter and lighter and moved around the country in a van convincing farmers to stock their products and only pay after selling, Bidco has since moved from oil presses to edible oil refinery and imports its crude palm oil from Malaysia while bleaching earth and other raw material used in refinery are imported from china. They had recently acquired flagship brands from Unilever group both in edible oil and soaps after the latter could no longer be competitive In the market. The company has adopted the Japanese philosophy, Kaizen which is about continuous improvement in all areas. This has addressed the issue of wastages in the production and human resource management, procurement by adopting the best production practices and management.
Harvard Business Essentials described strategy as a deliberate search for a plan of action that will develop a business ‘s competitive advantage and compound it. By applying value chain analysis an organization is able to determine which activities within the chain gives the most value. These value generating activities results into creating competitive advantage for the firm. For the company that I have chosen Bidco, innovation in production, procurement, product differentiation and continuous research and development of new products and development of efficient distribution channels have been identified as value generating activities for the company. These three activities has set Bidco apart from its competitors. Two of its competitors are Kapa Oil Refineries and Pwani Oil Refineries.
Value chain analysis is the process by which activities within the chain are analyzed and value adding activities and those associated with core competencies and capabilities identified in order to focus on them and make them perform better than those of the competitors. Continuous improvement and innovations, efficient distribution channels across the Africa Continent and continuous research and development of new products has created value and competitive advantage for Bidco. Senge (2005) likened value chains to a glue that connects disparate businesses, locally, regionally or globally. In the case of BIDCO, its suppliers are part of that chain. They determine the cost, quality and reliability of the supply. BIDCO’s value chain has potential strategic significance. From the seed suppliers, logistics providers and finally processing the final products and distribution of the same, shareholder value continue to be created as it positively affects the larger value chain.
Question to further discussion:
Since value chain reach beyond the boundaries of individual businesses, in which areas would BIDCO collaborate with other organizations as it implements its sustainability strategy?
Reference
The Harvard Business Essentials: Strategy: create and implement the best strategy for your business HD30.28.H3785 2005.
Senge, P., Smith, B., Kruschwitz, N., Laur, J., & Schley, S. (2010). The Necessary Revolution: Working Together to Create a Sustainable World.
Critique discussion #2’ analyses by identifying additional strengths and weaknesses of the analyses and offering suggestions for addressing those weaknesses.
•Offer insight into additional potential linkages among areas of the value chain in your colleagues’ organizations that they may have overlooked, and ask a question to expand their thinking on the subject.
•Offer additional insight into the potential strategic significance of the value chain in your colleagues’ organizations and ask a question to expand their thinking on the subject.
•Answer one of the questions posed by your colleagues in their posts.
Discussion #2
Value Chain Analysis
According to Covell & Walker (2013), Nike is an athletic apparel and gear company based in the United States. Nike offers athletic shoes, clothes, and other accessories worn during sporting events. The US athletic footwear industry comprises companies that manufacture and sell athletic footwear, apparel, equipment and accessories. Nike has become one of the most recognizable companies in the entire world. Nike has had a monopoly in the athletic gear industry for many years. Putsis (2013) described Nike’s main competitors as Adidas and Under Armor. Nikes major buyers are teenagers who later switched to boots and leather gain strength over its competitor.
The value chain analysis is used to see what organization can do to create an advantage over its competition. According to Porter & Kramer (2011), value chain relates to the activities through which firms develops a competitive advantage and creates shareholder value. Michael Porter introduced a generic value chain model that comprises of a sequence of activities found to be common to a wide range of firms.
The value chain analysis divides a company’s activities into primary and support activities. Primary activities are those that involve creating a product and getting the product to market for purchase. Support activities provide the infrastructure that enables the primary activities to take place. The primary activities include procurement and inbound logistics, operations, outbound logistics, marketing and sales, and service. Support activities include research, technology, systems development, human resource management, and general administration (Magretta, 2012).
According to Lu, Sung, Wang, & Li (2012), the goal of the activities is to offer customers a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. One linkage in the chain can affect any part of the chain. The firm will look at the activities that are most valuable and ones to improve to provide a competitive advantage over its competitors. Nike has a strong customer base and large distribution systems that produce many different products for the customers.
Information technology permeates the value chain. Information technology initially was used for accounting and record keeping purposes. Technology can affect competitive advantage by incrementally changing the activities themselves or by making possible new configurations of the value chain. Information technology has given businesses multiple ways to generate data as it performs its activities over multiple systems (Porter & Kramer (2011).
The value chain technology includes technologies in inbound logistics, operation, outbound logistics, marketing and sales, and service. Value chain activity often affects the cost or performance of one of the other activities. Technology helps in planning and collaboration, thereby improving the overall effectiveness of the process. Technology is used to track orders and delivery coordination, and monitors and coordinates shipment, ensuring delivery of the product to the consumer as scheduled. Technology improves the quality of the information, expedites transfer, and monitors the volume of transactions (Tsai, Raghu, & Shao, 2013).
Nike’s strengths include pride it takes in getting the top athletes to wear and sponsor their products. Famous athletes in basketball, football, soccer, and track wear Nike footwear and clothing. Consumers will remember the product based on the athlete and sport played by the athlete (Hall, 2013).
According to Covell (2013), the majority of Nike’s income comes from selling its product to retailers who in turn sell the product to the consumers. The market that Nike participates is very price sensitive. Many consumers try to find the lowest price when shopping for Nike products. Nike continues to receive negative publicity regarding poor working conditions for workers in their overseas factories. Workers are underage and paid way less than minimum wage. Nike must improve the firms weaknesses to stay ahead of its competition.
Questions:
Nike has dominated the athletic retail business in all categories. How can other companies such Adidas improve to compete with Nike?
Nike achieved a cost advantage by controlling the cost drivers out of its supply chain. What can other firms do to help improve their advantage?
References
Covell, D., & Walker, S. (2013). Managing sport organizations: Responsibility for performance. London, UK: Routledge.
Hall, R. (2013). Brilliant marketing: What the best marketers know, do and say. London, UK: Pearson UK.
!!!!! please answer discussion 1 & 2 Seperately !!!! also list two references for each.
SAMPLE ANSWER
Since value chain reach beyond the boundaries of individual businesses, in which areas would BIDCO collaborate with other organizations as it implements its sustainability strategy?
BIDCO should partner with research market companies such as Nielsen and IRI for research and development of the company. Although the company conducts basic research that benefits numerous customers, the primary goal should focus on applied research. Applied research looks at short-term programs such as successfully building new product lines. This proves to be the strength of these research firms in that this method of research is less costly than the basic research, and less dangerous due to the short-term nature. Moreover, research market companies such as Nielsen provide the needed information from the market and customers, which assist the management to avoid risk and invest in necessary places.
The firm should also have a good partnership with other companies that produce its raw materials, especially in near places to avoid excess production costs. These are inbound logistics that ensure there is a constant supply of raw materials to maintain the production. The company has been importing its crude oil from Malaysia, a situation that reveals there is little of its raw material in Africa. In this manner, the company should partner with some agricultural firms within its locality to produce the raw materials. When this is done, there will be an enormous reduction of production cost.
Lastly, just like other big companies, BIDCO should collaborate with big bodies that host global events. For example, Coca-Cola Company sponsors several events such as Big Brother Africa, world cup, and many others. It is time for the company to collaborate with bodies such as FIFA, WHO to sponsor some of the activities. Hall (2013) says that the only way to penetrate through this tough business competition, one has to locate the prominent customers.
References
Hall, R. (2013). Brilliant marketing: What the best marketers know, do and say. London, UK: Pearson UK.
Petkus, E. (2013). Value-Chain Dynamics of the West Point Foundry, 1817-1911: A Historical Case Analysis in Marketing. Marketing Education Review, 23(3), 275-280
Nike has dominated the athletic retail business in all categories. How can other companies such Adidas improve to compete with Nike?
Other companies such as Adidas should obtain many suppliers in the industry to neutralize the effect of Nike in the market. According to Aaker (2011), very little suppliers in the market make bargaining power non-existent. Rubber, leather, and cotton commodities should be abundant in the market with the brand name of other companies. The firms should also be able to switch between the available suppliers cheaply and quickly hence the suppliers will become dependent on the company for their survival.
The firm should put a lot of emphasis on the 4Ps, which are the product, price, promotion, and place. These are very vital components of dominating the market according to Aaker (2011). For a product, the companies should provide good quality and comfortable shoes and outfits that fit the players through research and development. For the price, Nikes competitors should have a pricing strategy for every group of consumer. The price of the items varies depending on the design and edition of the sports gears. For the place, they should open discount outlet stores in rural areas and retail shops where they are less known. Selling in different places will assist them to handle the different needs of the customers. For the promotion, they should not only cut the discounts but also participate in the sporting activities by rewarding and sponsoring those events.
Just like Nike, other companies should have both management and independent directors. The combination of the directors will benefit the companies in that there will be a presence of managers who are directly and indirectly involved with the company. The indirectly involved managers bring outside experiences that provide another frame of reference. The directly involved board is classified as an oversight board, engaging in active roles with strong regards to the management in point of strategy formulation. They also check market trends based on research work and development (Ahenkora, 2012)
Ahenkora, K. (2012). Qualitative Value Chain Analysis and Strategic Choices. International Journal Of Business Management & Economic Research, 3(1), 429-431
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Long-term financial implications of unequal division in paid and unpaid work between men and women
Order Instructions:
Discuss the long-term financial implications of unequal division in paid and unpaid work between men and women (within and between households) and the extent to which individuals and governments can act to mitigate the implications of these differences in the future.
SAMPLE ANSWER
The Gender Pay Gap
Abstract
The gender pay gap has always being a controversial subject. The inequality between the pay structures between men and women have been traditionally been linked to the historical roles of childbearing and rearing that women have to undertake besides the regular jobs for normal maintenance. The traditional roles women perform both domestically in some places of work are unpaid. These roles have not been quantified in terms of their financial capabilities but their implications have far greater consequences than the male dominated jobs. The responsibilities that women bear are enormous and greatly weigh them down especially in their pursuit of quality education and well paying jobs that are more demanding.
The consequences and implications of the employment and pay imbalance between men and women are catastrophic. The women population will continue to dwindle as majority will sink to poverty as a result of the greater responsibilities of bringing up children while the lowly paid jobs have to be alternated with long periods of absenteeism as a result of pregnancies and childbearing complications. Reduced populations will affect the labor market as scarcity leads to more demand which results in increased costs of acquiring labor services. These will eventually lead to a spiral type of inflation.
Lack of adequate income will also result in ill health, more infant mortality rates and also will largely contribute to women powerlessness. It’s obvious that the inequality in wage compensation affects more women than men and as a result more women are shunning or postponing the extra responsibilities associated with childbirth and marriage. These difficulties have now become a factor in future population growths with countries like Japan and Switzerland experiencing low births that are not consistent with population imbalance. The numbers of old people are growing much faster than they are being replaced by the younger population. (EC, 2009b) Reduced population growths will finally lead to reduced labor force. Labor is a factor of production and its scarcity leads to more expenses for its acquisition. (Millar and Gardiner, 2004)
Inequality in income distribution between paid and unpaid work will lead majority of the workers to shun the unpaid work whether it’s dominated by men or women. All types of jobs have their contribution in the economy. The sudden withdrawal of one sector in the economy will affect the functions of the other sectors as well. (Goode, Callender and Lister, 1998)
The governments can enact legislation that protect women’s right in parental responsibilities and also enforce their rights in gender equality in places of work and compensation structures. The economic empowerment of women and the equality in payment compensation will ultimately lead to more productive society.
The provision of basic services and access to financial assistance in terms of welfare and job creation for women should be a priority for the government. The paid maternity allowance should be also encouraged by allowing companies that have more female employees tax incentives to encourage the employment of more women. The role of women in many households should also be factored during divorce proceedings and the wealth acquired by both parties should also be naturally split as such roles are necessities in life.
Individual men can also participate positively in creating a fair and free society where all people are equal despite of gender or pay differences. Individuals can assist the government in implementing the financial and social changes that may be required to balance between the compensation structures between men and women.
References
Goode, J., Callender, C. and Lister, R. (1998) Purse or Wallet? Gender Inequalities and Income Distribution within Families on Benefits. London: Policy Studies Institute cited in
For each source listed, you will begin with a summary of the information you found in that specific source. The summary section gives your reader an overview of the important information from that source. Remember that you are focusing on a source’s method and results, not paraphrasing the article’s argument or evidence.
The questions below can help you produce an appropriate, scholarly summary:
What is the topic of the source?
What actions did the author perform within the study and why?
What were the methods of the author?
What was the theoretical basis for the study?
What were the conclusions of the study?
Remember, a summary should be similar to an abstract of a source and written in past tense (e.g. “The authors found that…” or “The studies showed…”), but it should not be the source’s abstract. Each summary should be written in your own words
SAMPLE ANSWER
Forster, M., Grigsby, T. J., Unger, J. B., &Sussman, S. (2015). Associations between gun violence exposure, gang associations, and youth aggression: Implications for prevention and intervention programs. Journal of criminology, 2015.
Summary
Forster, Grigsby, Unger and Sussman (2015) conducted a study that investigated the link between gang association, exposure to neighborhood violence and social self control to incidences of aggression at school. The study collected data from minority youths from three Southeast Los Angeles schools. In the literature review, the authors show that aggression is a serious problem in schools. According to Forster et al (2015), over 600,000 teenagers reported assault related injuries annually, in addition, between 20 and 40 percent of school going students had experienced a bullying incident at school. The literature review also revealed that between 700,000 and 1,000,000 teenagers were members of gangs. Past studies have shown that exposure and association to gangs, affiliation with delinquent peers, and family processes are indicators of violence perpetration and victimization. To investigate the link between the variables, the study sampled 77 female and 87 male 7th and 8th graders in three South Los Angeles middle schools. Questionnaires were used to collect data on substance abuse, demographics, social self-control, and family and peer gang association, neighborhood violence and self-reported aggression. The study reported that teenagers with high levels of social self-control were less likely to be involved in past week aggressive episodes. Students with friends who were members of gangs reported 91 per cent higher incidents of aggressive episodes. For girls, aggression was 46 per cent higher if the family was affiliated to gangs. Exposure and fear of gun violence also increased the incidence of aggressive episodes by 26 per cent. According to the study, students were most likely to be involved in aggressive incidents if they were male, had friends associated with gangs, and had low levels of social self-control.
Critique
Forster, Grigsby, Unger and Sussman (2015) is useful study as it explores an area of research where there exist little empirical evidence to link the variables. It is worthwhile to note that the research provides an insightful background on the teenage and school violence. The author then seeks to investigate the factors that lead to high rates of aggression among teenagers and school going students. Unfortunately, the research only sampled 164 students which is a small sample to facilitate the generalization of the results of the study to the general population. In addition, the study was conducted in only three schools in the South Los Angeles area where gang violence and gun crime is common (Forster et al, 2015). It is obvious that teenage aggression in other areas may be driven by other factors apart from association with gangs and exposure to gun violence. However, the results than link social self-control to lower levels of self-reported aggression can be generalizable to other student populations. Using self-reported measures is also a major weakness of the study as the students may fail to report honestly on most of the data collected. Observation would have been a better option for collecting the data on past week aggression as opposed to self-reported measures of aggression. Using observation, the researcher would have been able to see and record incidents of aggression rather than hear about them from the participants. The study rightly concludes that school based interventions can be used to disrupt the development of aggressive behavior. School based programs can help indeed help in the development of social self-control which has an inverse relationship with the development of aggressive behavior.
Application
Forster et al (2015) is a very useful study in research on teenage violence, and associated the associated study areas. The study provides valuable statistics on the state of teenage violence indicating that more than 600,000 school age children report aggression related injuries every year. The study helps to illustrate that teenage violence is a serious problem affecting many school going children and it is an area that warrants further research. Most importantly, the research identifies some of the factors that are predictors of teenage violence perpetration or victimization. The study reveals that association with gangs and gang members is a contributing factor to aggressiveness among teenagers. Other impacts of gang association such as the tendency to use substances and other truant behaviors can also be investigated in future studies in the area. The study also reports an inverse relationship between social self-control and incidents of teenage aggression. Further studies also need to be conducted to establish whether self-control can decrease aggression among teenagers who associate with gangs, and have been exposed to gun violence. The study also indicates that self-reported measures of aggression were limitations of the study, and thus another method of data collection like observation can be used for future studies. The study design also provides a research model that can be expanded for future research in the area of teenage truancy and violence. The research sample for future research on the topic can be expanded to more schools from more heterogeneous school districts to ensure the results can be generalized. Therefore, Forster (2015) is an important research article that provides preliminary evidence linking association with gangs, social self control, and family association with gangs with teenage violence perpetuation. Most importantly, the study establishes several directions for future research in the area
References
Forster, M., Grigsby, T. J., Unger, J. B., & Sussman, S. (2015). Associations between gun violence exposure, gang associations, and youth aggression: Implications for prevention and intervention programs. Journal of criminology, 2015.
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Scenario – You recently instituted a “No Smoking” policy in the facility. All employees were notified of the policy change. It was not well-received. As you walk down aisle B in the warehouse, you see a cloud of smoke and then see Chris running to aisle A. You need to talk to Chris.
Describe the real issue, and explain what the most difficult element of this step is for you.
Describe your goal.
Explain what temptation you are most likely to face and how you will resist it.
Explain basic performance concepts, such as how you will get permission, what issues you would consider when choosing the best time to deliver the feedback, and how you will select the place for the conversation.
Write your negative feedback narrative following the ABC model.
Conclude your paper with your insights about the process and your comfort level with it.
SAMPLE ANSWER
Presenting Negative Feedback
The real issue involved in the scenario is lack of co-operation from the employees in relation to the aspect of adhering to the no-smoking policy. Employees in the organization seem not to embrace the policy and are inclined towards breaking it. Taking this issue into consideration, the most difficult aspect of this case is confronting Chris with the issue of smoking as there is no substantial proof that can link him to the cloud that emanated from warehouse. Thus, the problem lies in presenting the negative feedback to Chris without hurting his feelings or making feel disregarded. In relation to this, my goal is to deliver advice Chris against the habit of smoking within the organization without hurting him or making him feel disregarded. Besides, I aim at ensuring that the employ receives my advice and respond to it in an effective way. I want to ensure that the employee comprehends the significance of not smoking within the organization alongside the negative effects that such a habit has on the organization. In addition, I also aim at ensuring that the employee does not become defensive during the confrontational process.
In solving Chris’ problem, I will employ the ABC framework or model. This framework offers a three-step procedure for presenting and receiving feedback. One of the temptations that I can face during the process of confronting Chris is the feeling of wanting to rebuke or criticize him for his action. Moreover, the feeling of fear can also develop inside, as I do not want to annoy the employ. When leaders are faced with a situation in which their juniors seem to ignore the outlined rules and regulations, the aspect of anger is often inevitable (Lu et al, 2011). However, efficient and effective management of anger is a significant aspect that leaders should embrace when confronting their employees over issues. In relation to this, I will ensure that I remain composed and calm when confronting Chris to enable me to accomplish my objective. Listening and providing feedback effective are significant skills for leaders who are focused on improving the performance of firms through effective employee corporation.
Researchers have focused on illustrating why individuals who are providing and receiving feedback often view this process with fear or apprehension (Lu et al, 2011). Lack of adequate training on the part of leaders is always linked to element of fear during the confrontation of employees. Managers who allow fear to develop in them when confronting workers usually wind up proving undesired or unintended responses such as defensive and anger. Using the ABC model will enable address the issue involving Chris in an effective manner.
The first step of the ABC framework will involve the action stage. Here, I will focus on collecting information on the issue surrounding Chris case. For instance, I will conduct a thorough investigation to be sure that Chris was the one involved in smoking in the warehouse. One of the methods that I will employ in achieving this goal is confronting Chris’ close associates or friends, and inquire about the issue from them. While doing this, I will be keen not to leak any information concerning my encounter with Chris at the aisles. Besides, I will also ensure that any information that might link Chris to smoking in the warehouse is kept private. Collection of adequate data on this information is vital in ensuring that I focus on a specific issue when confronting Chris (Van-Dijik & Kluger, 2011). As such, Chris will not perceive my confrontation as an attack to him. Being that Chris was running to aisle A, does not offer a full proof that he was the one smoking in the warehouse. Therefore, collecting adequate information concerning this issue is significant in ensuring that I confront him with adequate evidence linking him to the mistake. The availability of data will play a vital role at this stage as it helps in depersonalizing the opening exchange, which is significant in reducing any dissonant reaction (Van-Dijik & Kluger, 2011). Furthermore, the availability of data will help me in making a confident and accurate statement. Here, my main aim will be to provide a picture of characters that are actionable. As such, this approach will enable Chris view what I am discussing to him and develop the feeling that he can do something about it. At this stage, I will have to deliver the message to Chris. However, I will ensure that this message is delivered after the normal working hours to avoid interrupting Chris from his work. Moreover, this time be suitable for to deliver the message to Chris as delivering the message in-between the working hour can impact negative on Chris’s performance. I will also ensure that this message is delivered to Chris at a quiet and confidential place to avoid interruption or embarrassment that he might face from other employees. As such, I will have to call him in my office.
In the second stage of the ABC model, I will focus on the significance of addressing the issue of smoking in the organization. Here, I will focus on informing Chris about the impact of his behavior on the organization and other employees. This stage will be vital in ensuring that valid reason why the habit of smoking in the organization is not required is provided. As such, this step will ensure that Chris takes accountability and ownership of the feedback or his action. Besides, this stage will help in the establishment of a credible and valid purpose for giving the feedback to Chris. At this stage, the use of abstract statements such as “people often…” and “everyone thinks…” will be avoided as they serve to block any opportunity to engage the employee in discussion concerning the specific effect of his action (Lu et al, 2011). This undertaking will help in ensuring that Chris acknowledges the negative effects of his action and avoid treating the confrontation in a negative way. In addition, this step can help in revealing the reasons why workers are uncomfortable with the no-smoking rule as it will involve a discussion between the two of us.
Lastly, I will focus on establishing the actual remedy for addressing the issue of smoking. In this stage, I will aim at identifying the resources, action plans, and needs that are required in ensuring that workers stop the habit of smoking within the organization (Van-Dijik & Kluger, 2011). This step helps in ensuring that I focus on all workers as opposed to the single worker who was involved in breaking the no-smoking rule. This stage also helps in avoiding time wastage in blame game. As a result, this time can be employed in finding effective solutions to the lack of corporation on the part of workers.
In conclusion, the application of the ABC framework in solving Chris’ case will help in ensuring that the issue of smoking within the organization is handled effectively without any resistance from employees. Furthermore, the application of this framework in solving the issue of smoking in the organization will help in the realization of efficient corporation from workers
References
Lu, K et al. (2011). Examination of a Perceived Cost Model of Employees’ Negative Feedback Seeking Behavior. Journal of Psychology, 145(6), 573-594.
Locate the proper Emergency Support Function Annexes from the National Response Framework Resource Center for this Session Long Project. The areas of interest are:
•Fire
•Search and Rescue (SAR)
•Public Safety
Also, refer to previous readings and required websites.
During a natural or man-made disaster, fires happen, people go missing, and people may commit criminal acts or become threats to public safety. One only has to remember the Hurricane Katrina episode. Your Emergency Response Plan includes your local fire and police departments. Memoranda of Understanding have been drafted so their functions are clearly delineated. Search and rescue falls under your fire
Scenario: A major blizzard dumped 2.5 feet of snow, leaving your town in disarray. Such a storm is rare in your town. As Incident Commander, you have spearheaded a successful two-day coordination of essential services that include alternate use of transportation (e.g., procurement of five snowmobiles for police) and the establishment of alternate communications. However, 75% of major highways and secondary roads need to be plowed, but there are only five town plows available. The majority of citizens need to have access to supermarkets and hospitals. List what you will do first. Then discuss your plan of attack. Reference specific pages in the National Response Framework.
SAMPLE ANSWER
Search and Rescue Mission
From the previous reading, search and rescue known as SAR is the search for provision of aid or assistance to individuals who are in imminent danger or distress. However, this rescue programme is aimed at assisting various people whose lives may be in danger in various parts, location, and times from every corner of the country. Therefore, the general field of search and rescue may include many specialties, characteristically determined by the specific type of terrain of the search conducted. They include ground search and rescue, mountain rescue, urban search and rescue in towns and cities, combat search and rescue, which happens in the battle fields, and air-sea rescue that takes place in water.
A case where there is fire outbreak in the city and a large blizzard has blocked the major roads leading to the city would involve the entire search and rescue plans. That is, urban search and rescue, ground search and rescue, and air search and rescue. The first point of rescue mission is the communication that serves to create awareness to the public. Krolik (2013) says that the first point is prevention and then curing. The safety of the public becomes a matter of concern and the people who are out of the vicinity who may intentionally or unintentionally come to the scene are prevented. In this case, the mobile services are applied. Rescue teams such as the Red Cross society can provide food and medical services so the people to avoid further movement that can would increase the number casualties. Underwood (2010) posits that containing people in a safe place is the first step of rescue. Then the ground search and rescue is applied by using plows to tilt the land providing opening for fire personnel. However, following the few numbers of plows, a rescue plan is revised and the air search and rescue plan is applied to work together with the ground search and rescue.
The ground search and rescue missions that take place in urban areas should not be bemused with urban SAR; in this case, there is extraction of materials and people from affected buildings and other entrapments. The team can also employ sniffing dogs in cases where the plows have opened necessary routes. As opening the routes by the few plows might take long, the rescue team employs air search and rescue where helicopters are used to save lives and ferry the fire brigade team to the site. The helicopters are usually non-amphibious equipped with hoists.
As the air and ground search and rescue work to stop the disaster, the team also applies urban search and rescue to work in the city. The city is much completed and all the multi-disciplinary forces are needed. This includes personnel from medical services, police, and fire departments. The urban search and rescue team have rescue knowledge on broken natural gas lines and live wires that are known to spread the effects of fire (Underwood, 2010). The personnel from the medical services attend to those who are seriously injured. Rescue communities such as World Food Organization and government services ensure the individuals at risk of movement are attended to by providing them with food and shelter. Finally, after the rescue mission, the area is marked out of bounce and the specialists given the go forward for investigation so that the primary cause is realized to avoid such predicaments in future
References
Krolik, M. (2013), Exploring A Rights-Based Approach To Disaster Management. Australian journal of emergency management, The , 28(4)44
Underwood, S. (2010) Improving Disaster Management. Communication Of The ACM, 53(2), 18-20
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Describe how you’d feel if you had to take a psychological test or an honesty test either as an employee or as a precondition for employment. Under what conditions, if any, would you take such a test?
Every human being has personal privacy that he or she would not like exposed to any other party (Muchinsky, 2012). The questions asked during honesty test or a psychological test tends to infringe on private information of an individual. Take for example a question like “Are you strongly attracted to members of the same sex?” This is a very private information that I feel should not be disclosed to any other person. After all, it is none of his business to know whether I am or not. I would obviously feel beleaguered but then because it is a precondition for employment, I would assume my feelings and take the test to answer the question for the sake of the job.
How useful or informative do you think such tests are? Is their use of a reasonable business policy? Assuming that tests like those described are valid and reliable, are they fair? Explain.
Honesty tests are very informative to the employer. There are some questions that would lead the employer to automatically detect whether his prospective employee is honest or dishonest with his answers. In a question like, “Do you always tell the truth?” the answer should be automatically “NO” because anybody who has attained the employment age has lied at any one given point in his lifetime. Should the respondent say yes, then the employer would be informed that he is likely to be a dishonest employee.
There is a business policy that states that personal privacy should remain confidential and they should only reveal them if they feel free to do so. In an honesty test, the employees or the prospective employees are compelled to answer questions regarding themselves, which under normal circumstances they would not reveal to anyone, not even their confidant, but because it is a matter of survival, employment for that matter, they are forced to take the tests and answer the questions as they come. This, therefore, implies that there is no use of a reasonable business policy.
The honesty tests described above are actually not fair. Even if they are valid and reliable, they are more of nagging to the employees and any other person would not want to take the tests if they had an alternative.
Do you think tests like these invade privacy and, if so, is this invasion justified? Explain why or why not.
Tests of this kind actually invade privacy and the invasion is justified. Inasmuch as the privacy of the prospective employees is invaded, the invasion is necessary because it is not only important but also safe for the employee to know the real character of the individual he is employing. It has been in the public domain that some employees end up with some characters that would sabotage the organization and send it crumbling. Such characters like theft can be detected in a person through the tests and therefore the tests are justified.
What ideals, obligations, and effects must be considered in using psychological tests as pre- employment screens? In your view, which is the most important consideration?
Previously, it was the person taking the honesty tests that felt nervous, riddled with angst or tensed (Shultz & Schultz, 2010). To this day, the employers administering the tests to the employers or the job seekers would also find themselves suffering from anxiety or feeling tensed too. This is because there have recently developed a number of obligations, ideals and effects that have to be considered when administering psychological tests (Shultz & Schultz, 2010). The legal hurdles and threats to employment testing have been quite significant. The employer have to consider whether or not he is infringing the employees’ or the applicant’s’ civil rights (Shultz & Schultz, 2010). He also has to take into consideration the psychological effect that the person undertaking the test would have after the completion of the test.
The most important consideration in this case is the consideration whether civil rights are being violated. It is a universal human rights requirement that everybody’s civil right is to be protected and from violation and anybody who violates it should be subjected to legal justice. The employer should try as much as possible to respect the civil rights of the employees or the job seekers as much as possible.
If you were an employer, would you require either employees or job applicants to pass an honesty exam? Explain the moral principles that support your position.
I would require job applicants to or my employees to pass an honesty test. Any other employer would want to have honest employees to be certain that their organizations are safe from vandalism by dishonest workers (Fancher & Rutherford, 2012). As an employer, I would not expect anything less either. Even if not all the questions would enable the employer to identify honest workers, most of them will and, therefore, if they are passed, then the employer would be sure to have a very honest team that would deliver to the organization through honest means, thereby assuring the success of that organization.
References
Fancher, R. and Rutherford, A., (2012). Pioneers of psychology. New York, NY: W.W. Norton & Company, Inc.
Muchinsky, P., (2012). Psychology applied to work. North Carolina: Hypergraphic Press.
Shultz, J. and Schultz, D., (2010). Psychology and work today. New York: Prentice Hall.
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Constitutional impediments and Commonwealth-State rivalry prevent Australia having effective national, corporate regulation
Is this statement an accurate description of the situation in Australia today? Discuss, in the light of recent reforms to the regulatory scheme and problems which may arise in the future.
Guidelines
The word limit is 2400 words. If the assignment exceeds the word limit by 100 words or less, there will be no penalty. If the assignment exceeds the word limit by more than 100 words, there will be a penalty of half a mark deducted for each extra 50 words or part thereof. Footnotes will not comprise part of the word count nor will a bibliography. If the assignment word count is well below 2400 words (2100 words or less) there will be penalty.
NB: Late assignments will be penalised as follows:
• Up to 3 days late 5% of the maximum possible mark awarded for the assignment
• From 4–7 days late 10% of the maximum possible mark awarded for the assignment
• From 8–14 days late 25% of the maximum possible mark awarded for the assignment
• More than 14 days late Not marked
Refer to the Rules concerning all assignments for the circumstances when these penalties may be waived. Remember that the extension to the submission deadline is exception rather than the rule and it can be granted only in exceptional circumstances.
The assignment may cover all unit objectives, though content will vary with the topic selected. In addition to matters developed in more detail below the marker will examine whether you have:
1. identified and clearly stated the relevant issues;
2. applied relevant legal principles to the resolution of these issues;
3. critically analysed deficiencies in the law and recommended appropriate changes to the law;
4. integrated and evaluated relevant knowledge from both the material covered in this unit and your own independent research;
5. developed and sustained a concise and convincing legal argument through to a logical conclusion;
6. correctly referenced and acknowledged sources;
7. fluent, clear, concise writing, not containing poor expression, grammar or spelling; and
8. answered the specific question asked.
It is most important that your assignment address the issues raised in your chosen topic. Think about the topic and make sure you understand what the topic is about before you proceed.
Marks cannot be awarded for irrelevant material, no matter how good that material is. The assignment should contain:
1. An introduction, clearly setting out the broad direction of the assignment, its objectives, any parameters of the assignment, and perhaps a summary of the arguments;
2. Presentation of argument, review of literature and compilation of evidence relevant to the topic;
3. Conclusion, clearly summarising the arguments or findings;
4. a reference list, setting out all the books, articles and other sources you have referred to in the course of writing the assignment. You need not have necessarily read each reference from start to finish, but you should have at least looked up each reference;
5. Accurate citation of your sources of information. Your written material must be presented in accordance with the most recent Australian Guide to Legal Citation (AGLC) adopted by this School (you can download a copy of the AGLC from ).
Students should note the following:
• Many people are not familiar with the requirements of assignments. Basically they are like any other piece of good writing. They must have a beginning, a middle and an end. They must be organised so that one point leads to another in a logical sequence. Headings and subheadings are usually of assistance to the reader, who should be easily able to ascertain the logic of your arguments. You should look at the articles you read in the course of your research as a model for style and organisation.
• Statements of fact must be supported by referencing in the proper form. Also arguments and ideas you are adopting or disagree with must be properly referenced. This is one of the most important aspects of your assignment, and severe penalties will be imposed if you do not reference. Be aware of the University’s and Law School’s rules on plagiarism. You should avoid over-reliance on only a small number of sources. You are expected to have read widely on the chosen topic.
• You are expected to employ your critical and analytical skills in this assignment. Avoid mere description or regurgitation and do not quote excessively. Generally speaking, no more than 10% of the assignment should be direct quotes or substantive copying of other people’s work. Both your observations and your use of other people’s writing should reflect this critical/analytical dimension. In sum, your intellectual input should be clearly discernible in the assignment.
• You are not marked for your political or social views or opinions, but rather for your ability to present coherent, rational and logical arguments, properly supported by authority.
• You are also marked for your ability to express yourself clearly, logically and succinctly. Poor expression, grammar and spelling will detract from your overall mark.
•Many students do not also realise that the more drafts of the assignment that are written, the better standard the final product will normally be. You should aim to find the time to complete at least two, if not three, drafts prior to handing the assignment in. This will be especially important in ensuring that the word limit is not exceeded.
Marking criteria
Important information: You are advised to consider the following information carefully before starting your assignment.
The assignment will be marked according to the following criteria.
Research (40%) You are expected to demonstrate a comprehensive review of the primary law sources (legislation, case law) as well as an adequate review of secondary sources (for example textbooks, journal articles, case commentary, explanatory memorandum, Law Reform Commission reports). Your research should be used to identify and clearly state the relevant issues and legal principles and support your analysis.
Analysis (50%) You are expected to analyse the information gathered and evaluate the relevant legal principles. You are expected to develop your argument logically through clear analysis and apply relevant legal principles to the resolution of issue(s).
Your analysis should also:
• integrate and evaluate relevant knowledge from the material covered in this unit;
• develop and sustain a concise and convincing legal argument through to a logical conclusion; and
• importantly, answer the specific question asked.
Technical aspects (10%) You are expected to:
• correctly reference and acknowledge sources;
• use fluent, clear, concise writing that contains clear expression, correct grammar, syntax, sentence structure and spelling; and
• Use headings and subheadings (where appropriate), an introduction, conclusion and bibliography or reference section.
Submission of assignments
All students are required to upload an electronic copy of their assignments via Turnitin. DO NOT send a hard copy of your assignment.
Assignments must be uploaded on or before the due date.
Your assignments must be submitted as either Word documents (.doc or .docx) or as text documents (.rtf). Please do not submit PDF files. Please discuss any other file format with your lecturer well before the due date.
You can start by discussing history. I would say it is advisable since the constitutional issues are highlighted by earlier cases. You may also discuss Commonwealth-State rivalry in other areas of law as Tax law but briefly just to make a point or compare with Corporate law related issues
SAMPLE ANSWER
Company Law
Introduction
The commonwealth (Federation) and the States have been engaged in rivalry since the inception f the Australian federation in 1901, which has only got more heated over the past years given that the High Court has continued to award more power to the commonwealth at the expense of the States. The commonwealth has continually used the powers of the Australian High Court in judicial interpretation of the constitution to exercise their constitutional power over the policies of the States. A clear example of such a case was in 1942 when the High Court upheld the decision by the commonwealth to levy taxes through the First Uniform Tax case so that it could finance the war effort become the sole collector of taxes across the whole federation (OBPR, 2008). The High Court cited section 51 (ii) within the constitution that gave powers to the commonwealth to levy taxes (OBPR, 2008). The key issue of contention is that in cases where there is a conflict between the commonwealth and state regulations, the relevant commonwealth laws are considered supreme in such situations. The rivalries between the commonwealth and the states and the impactof the constitution have created an untenable situation in Australia that impedes effective national and corporate regulation. This was true in the past and is still true today although significant steps have been taken to create reform and change within the regulatory system so as to improve the situation. This paper shall focus on the recent reform agenda pioneered by the Council of Australian Governments (CAOG) and its effect on Australia and its corporate regulatory environment.
Fiscal Imbalances between States and the Commonwealth
A common source of rivalry between the Commonwealth and the States in recent years has been regarding how the federal government gives funding to the States through awarding them various grants. Given that the federal government is the sole tax collector in the country, it has to find a way of redistributing the taxes collected back to the States so that they can provide essential services to their people (OECD, 2009). The federal government is required to fund various basic services such as the provision of services to the elderly including their health care, and at the same time, it is supposed to provide basic health services to the rest of the population, but the States governments are required to provide hospital services. This scenario indicates that the responsibilities of the federal government and the State government overlap and the two bodies have been known to commonly use this overlap to blame the other party for any deficiencies in the provision of health services. As this blame game rages on because of the rivalry between the Commonwealth and the States, ordinary Australian continue to suffer due to lack of some basic health services as they are being told that it is the fault of either the State or the federal government (OBPR, 2008). Similar blame game scenarios exist in the provision of other basic services, which lowers the service delivery aspect of both governments.
Harmonization of legal and regulatory requirements
The commonwealth and the State governments also have a lot of rivalry that arises out of the harmonization of the legal and regulatory requirements for businesses in the country that have acted as a significant barrier to the growth of the country’s economy. Research indicates that through harmonization, the country can generate significant GDP growth, growth in real incomes and create more jobs, which will reduce unemployment and raise the living standards of many Australians. The rivalry has acted as a significant barrier to harmonization with both governments wanting to be the superior partner in such partnerships and to get the best of the benefits that accrue from such partnerships instead of thinking about the benefits to ordinary Australians (OBPR, 2008). It has seen Australia continue to offer significant obstacles in terms of regulatory requirements when creating companies and when paying for licenses with many corporations being charged for licenses both at the State and the national level. Without the rivalry one can only imagine how far Australia would actually go in terms of being one of the most friendly nations to investors and businesses in the region and maybe even across the globe. Over time efforts to establish national trade authorities and organizations that mange trade on a national level through harmonization have been met with a lot of resistance by the State governments. This rivalry has resulted in the lack of implementation of most of the harmonization programs in Australia.
National partnership payments
The delivery of services in the states has been affected for a long time by federal-state relationship in the sense that whatever the state governments did was tied to the policies of federal agencies. The NPP programs through which the federal government funded most of the projects of the states was skewed in the favor of the federal government, which had excess control over what the states did with the funding as it usually had attached conditions. The states were extremely limited in the scope of independent choices they could make in terms of how they would spend the money they received from the federal government. However, in order for states to have autonomy in their affairs as envisioned in the constitution, the role of the federal government in deciding the policies of states should be non-existent or minimal at best (‘BEPS and recent developments in Australian corporate tax law,’ 2013). Efforts to create a more independent relationship between the federal governments and the states have faced challenges because of the existing rivalry with most of the proposed changes still not being implemented. A different funding program should be implemented in order to give states more power over the policies they implement by removing the attached conditions that were a part of federal funding. Such a strategy would ensure that states have more control over the delivery of services within their jurisdictions, which will increase innovation within the states and boost competition between states that will benefit all Australians.
Rivalries between heads of governments
Initially the Commonwealth was almost entirely responsible for meeting of heads of governments that discussed the reform agenda in Australia, which gave little room for the states to set their own agenda and fully express their needs and policies in relation to the federal government policies. The heads of agencies in the federal government would arrive at such meetings with their requirements for the state governments clearly outlined with little room for debate, which fueled the rivalry further. However, the COAG has strived to reverse this trend and create a new culture for such meeting between heads of governments by directly involving the heads of governments from the states, the territories and the commonwealth in the planning of such meetings (COAG, 2008). Other avenues for dialogue have also been created in terms of working groups and ministerial councils, which meet much more frequently than in the past where COAG meetings were only convened on an annual basis and were extremely brief (OECD, 2009). These frequent collaborative meetings have served to increase the cooperation between the state and federal governments, which has significantly increased the pace of reforms within the country. The establishment of a Center for the Australian Federation by the states in 2006 is a clear indicator of the increased role of the states in the reform agenda currently being implemented in Australia.
The Impact of Ministerial Councils
During the implementation of recent reform agendas, the role of the ministerial councils has taken center stage given that they are a direct way of ending state and commonwealth rivalry as they are usually made up of ministers from states, the territories and the commonwealth (OBPR, 2008). The impact of ministerial councils cannot be understated as they usually result in the adoption of specific policies by the states that quickly translate into legislations and finally into regulatory practices in the states and territories. The ministerial act as avenues for resolving any issues that arise between governments and the COAG has identified them as a crucial component of the efforts to implement the reform agenda within the states because of the authority of the members of such councils as representatives of their governments. Initially the ministerial councils were too many with some having overlapping roles and there was ineffective communication between the numerous ministerial councils which directly impeded the coordination of their activities and their effectiveness. However, the CAOG embarked on a project of streamlining the effectiveness of the ministerial councils and creating better integration firstly by reducing their number and redefining their scope and providing clear guidelines for their formation (COAG, 2008b). The ministerial councils have been vital in redefining the role of the states in creating their own policies, which has positively impacted the relationship between the states and the commonwealth by increasing the autonomy of the states (OECD, 2009).
Improved mechanisms for regulatory management
A crucial component of the rivalry between state and federal governments is the rising costs of compliance across various jurisdictions in Australia because of non-uniform regulatory schemes that lead to double taxation on businesses, thus hindering business competition. Although the federal government is the sole tax collector, businesses are taxed and regulated under the individual constitutions of each state or territory, which greatly increases their compliance costs across jurisdictions (OECD, 2009). In order to improve the regulatory management mechanisms, the CAOG got the three levels of government to agree to several guidelines that would govern the regulatory environment (COAG, 2008b). The agreement included the establishment of gate keeping or controls as a crucial component of the decision making process, use cost-benefit analysis as a method of improving the quality of decisions made by analyzing the impact of such decisions. The agreement also involved the establishment of better analysis of the cost of compliance resulting from new regulations on individuals, businesses and the community, while at the same time increasing the scope of the impact analysis performed for new regulations (‘BEPS and recent developments in Australian corporate tax law,’ 2013). These mechanisms are supposed to apply to all three levels of government and the ministerial councils as they create regulations within the recommended regulatory framework in order to eliminate all forms of rivalry between states, territories and the federal government.
Applying best practice principles in regulation
In order to create and implement equal regulatory requirements the three levels of governments agreed to abide by some principles that would ensure the equality of regulations across Australia based on principles of equality and fairness. Some of the guiding principles under this agreement brokered by the CAOG include establishing a credible case for action before attempting to create legislation to solve a particular problem, considering several feasible options before making a decision on the best option to adopt for the problem, and adopting only those options that have the greatest overall positive impact on the society (COAG, 2008). The three levels of government also agreed not to restrict competition unless it could be proven that the benefits of such a move on the community would be greater than the costs and that this was the only way such benefits could be attained. The governments should also guide those affected by certain regulations on how best to comply with the regulations so that the expected policy outcomes might be achieved, while at the same time the governments should keep regulations up to date and relevant over time. In case there are issues that are raised by several jurisdictions after a particular regulation is being considered for implementation, the ministerial councils should halt its processes and commission a review of the decision making process (OECD, 2009). If the review team finds faults with the process, the council has the option of using the findings and recommendations when making their final decision, but if they ignore the recommendations, the heads of government may take up the issue.
Working Arrangements that Facilitate National Reform
As coordination between the commonwealth and states increased significantly after the December 2007 elections the COAG created a set of guidelines that would guide the creating of appropriate working conditions for the Australian workforce under the renewed cooperation between the two governments. Some key areas of focus included health and ageing, business regulation and competition, and productivity agenda including training and education. Working groups were constituted by the CAOG to create proposals for the implementation of these strategies, which were headed by a minister of the commonwealth with their output being in form of proposals, and delivery objectives (COAG, 2008). Heads of treasuries complemented the working group as an independent unit chaired by the Commonwealth Head of Treasury where they worked out formulas for implementing the proposed financial plans (OECD, 2009). The major strengths of the working groups include the fact that they have a clear agenda, they have high ranking political leaders, they have adequate funding and well established secretariats, and are composed of high level commonwealth and state officials with relevant experience in setting policies. However, states have raised issues with the significant role played by the commonwealth as the leader, but they also appreciate that the commonwealth is leading the reform agenda.
Conclusion
In conclusion, the analysis of the issues at the core of the rivalry between the commonwealth and state governments and the reform agenda implemented by the CAOG indicate that the reform agenda has tries to resolve most of the issues that impede the establishment of a national corporate regulatory environment. I would like to point out that if the reform agenda is implemented fully by successful governments, they can prevent any future rivalries by preempting them and establishing structure to quickly resolve such rivalries in the future. I would also like to issue a cautionary word to the corporations that are relying on the reform agenda to rollout programs or expand operations across the country or even internationally that the pace of reforms is unpredictable. Reforms may be fast tracked by one government only for them to drastically slow down during successive administrations, which means that all corporations should plan for such eventualities in future. The rivalries between the three levels of government are not new to Australia, what would be new is if the current generation of leaders was able to completely resolve the rivalries and constitutional impediments to create a favorable corporate regulatory environment. The reform agenda discussed here holds the key to the desired corporate regulatory future, but Australian leaders must be willing to implement it fully to reap the maximum benefits for their efforts.
Reference List
‘BEPS and recent developments in Australian corporate tax law,’ 2013, International Tax Review, 24, 10, p. 15, Business Source Complete, EBSCOhost, viewed 21 August 2014.
Assessment : Coursework
Please read the following case study and answer the questions at the end. Each
question has equal value.
Case Study
Lego: Learning From Mistakes
The Lego brand is known around the world as a leader in the toy market. It promotes learning through playing with colourful bricks that can be connected and disconnected to form a wide variety of objects such as robots and cars. The company was founded in 1932 by a Danish carpenter and despite interest from global giants in the toy world such as Mattel, has remained in private ownership.
The company has seen its profits rise and fall over the years. Its first loss was in 1998 as it faced stiff competition from the growth in the computer and electronic games market and difficult trading times followed with a massive loss of US$240 million being posted in 2004.
They had entered into an alliance with Disney to produce Hogwarts Castle Lego sets and sold over one million in line with the success of the first two Harry Potter films making them profitable again. But the dangers of being too reliant on this arrangement were evident when no more Harry Potter films were released after 2002 and sales fell once more.
Further brand extension strategies were tried but failed owing to a poor understanding of what kids wanted from Lego. There was a move away from the core brand into diversified products such as clothes and video games when in reality what the market wanted was for Lego to stick to their unique original product range. An additional threat was the high levels of competition from similar lower cost products.
Resisting takeover moves, the family fought hard to keep the company as a privately owned business appointing an ex McKinsey consultant Jorgen Vig Knudstorp as their new CEO. He quickly implemented a series of measures designed to save the business. Around 50% of the workforce was dismissed, factories were closed in Europe and manufacturing relocated to Eastern Europe and Mexico.
Knudstorp was keen to foster a culture of openness and team building by focusing on open communication between management and staff who had been largely unaware of how the business was run. He also realised that their future depended on returning to their core brand values and winning back loyal customers. By 2006 the company
was gaining sales and had started to be profitable again.
Much of this success was the decision to limit diversification, but the company also needed to listen to customers about what they wanted from the Lego range .Based on their previous success with Disney related products they developed more Harry
Potter and Star Wars toys . The Lego Star Wars video game became a best seller.
Reflecting on the problems that Lego had faced it appeared that management at the time gave designers a completely free hand allowing creativity to rule over good business practice. The components became too complicated for many children and a
vast increase in the number of parts resulted in higher costs of production.
The solution was to listen to their target customer and design products that they wanted, restrict design activity and make all departments work together bringing a balance of ideas and controls.
Lego is not the cheapest product in the market but they have the advantage of being the one that is recognised for quality and creativity. This will allow them to retain a position of competitive advantage.
Questions
1 You are required to assess and critically evaluate the branding strategy that Lego pursued when trying to re-establish itself in the global market after the
problems it experienced.
2 Select a preferred strategic option for Lego and develop an international marketing strategy.
(Adapted from ‘ Lego playing with its strengths’ with kind permission from Cengage Learning)
References: The Economist, 28th October 2006. J. Greene.’ How Lego revived its brand’,
Bloomberg Businessweek,23rd July 2010
Assessment
Assessment Instructions
This coursework will be in REPORT format and is worth 40% of the overall mark. The Harvard referencing style must be used. This is an individual piece of work
• All material such as company information, websites, books, newspaper articles, journals, theory and models MUST be referenced within the report as well as a full reference section at the end of the report.
• Use Appendices where possible to keep to the required word count ( 2500 )
• Please note the marking criteria and weight this accordingly within your assignment.
• Late submissions will be capped at P1 unless extenuating circumstances have been approved.
Marking Criteria
The following framework is a guide to the marks available for the assignment:
Report structure and presentation 15%
Critical evaluation of original branding strategy 35%
Recommended strategy with justified options 35%
References/bibliography 15%
Total 100%
SAMPLE ANSWER
Lego Case Study
#1
Each and every organization or business needs to establish its brand if it wishes to grow and acquire new consumers. There exist different types of branding strategies that firms can employ in attaining growth and acquiring new buyers. Some of these strategies have been noted to more effective than others in different market settings. Thus, firms are required to enter into their respective industries with well-established markets strategies for them to realize or witness success (Rubera, 2013). It is vital to note that the form of marketing strategy employed by a firm depends on the marketing needs of that firm. Prior to its establishment in the market, Lego focused on various branding strategies. However, the major branding strategy that this firm pursued to re-establish itself in the international market was the unique brand strategies. Unique branding strategy focuses on the establishment of a brand with unique characteristics around every service or product available. In some situations, this approach happens to be beneficial to organizations that provide various product lines or products. Furthermore, this strategy enables a product to maintain a positive reputation even when one of the brands performs poorly in the market.
Using the unique branding strategy as in the case of Lego is associated with several benefits. Taking into consideration the fact that this strategy focuses on the unique features of a brand around given product, the failure of one product cannot lead to the failure of the entire products offered by the company. When firms focus on specific products, the failure that arises from such products cannot be associated with other products (Robertson, 2013). This benefit stems from the fact that distinct advantages of every commodity can be attributed directly to specific brands. Focusing on the unique quality of a brand is significant in ensuring that companies invest adequate resources in the establishment of such brands. Focusing on the unique features of a product enables a company to improve in such features, which is vital in ensuring that organizations develop goods that have a competitive advantage over those that are produced by other firms as in the case of Lego. This company’s focus on the unique aspects of its brands helped it develop a product that meets the needs of the buyers. The focus on the unique brand strategy enabled the company to research on the needs of consumers followed by incorporating such needs in the products that it was developing. As a result, Lego managed to develop commodities that had a competitive advantage in terms of creativity and quality. This success was evident in the development of the Lego Star Wars, a video game that managed to become the best seller. It is evident that the use of other strategies such as diversification does not provide organizations with a suitable platform on which the interests of buyers can be taken into consideration. For instance, the company was unable to address the needs of consumers when it shifted to the production of diversified goods such as video games and clothes. On the contrary, the company’s move was wrong as customers were interested in the firm’s unique range of products.
Unique brand approach is significant in ensuring that the company provides value as in the case of Lego and its products. This strategy enables the business to establish and communicate a brand message, which has the potential to influence how buyers perceive the company. Knudstorp employed the unique brand approach in returning the company’s core values, which helped the company in winning back its loyal buyers. A firms core values are vital in the realization of its success in the market. Core values of company help in developing a positive reputation of the business among buyers (Robertson, 2013). Furthermore, maintaining the core values of an organization is significant in ensuring that the firm sends a brand message, which is clear to buyers. In many situations, customers often develop their assumptions about the organization based on how they perceive it. Therefore, the aspect of establishing maintaining positive values of the organization as was done by Knudstorp helps buyer develop a positive about the organization. Research has revealed that for businesses to grow in consistent and repeatable patterns, the companies’ buyers, employees and prospects must be in a position to associate these firms positively with things that offer positive values (Rubera, 2013).
Having a unique brand identity helps businesses grow in sustainable ways. As businesses expand, the presence of defined brands enables such organizations to build on their strengths alongside leveraging their unique values easily in the markets in which they operate. Managing the unique brand strategy is easier than managing other approaches such as the multi-branding strategy. This strategy has an added advantage in that it is not affected significantly by the choice of the business model. On the other side, the use of the unique brand strategy has certain disadvantages. When firm employ this strategy in marketing, each product often requires its marketing approach and budget with the absence of synergy between products (Rubera, 2013). As such, successes of products cannot be linked directly to the firm’s brand. Moreover, focusing on the unique features of the brand requires more resources than those required in other strategies such as the corporate brand approach. Establishing a unique brand requires companies to obtain information from other sources such as customers. Gathering information from buyers can be expensive as it involves methods such as survey that may consume time and resources. In addition, this process is complex as it involves working to comprehend the information gathered via objective analysis followed by an effective and consistent communication of the brand message to via channels of marketing and other touch points of consumers.
The economies of scale generated by the unique brand strategy are not more than those generated by multi-branding strategies. This approach focus on single brands, which makes the company earn more revenues from other products than others. However, using approaches such as the multi-branding strategy enables firms to earn revenues from all commodities that are sold under one brand. The unique brand approach does not address the needs of consumers who often have the tendency to shift to different brands (Rubera, 2013). In many markets, there exist consumers who always shift from one brand to another with the aim of exploring the benefits offered by other brands. Using the unique brand approach does not address the requirement of these buyers as it focuses on single brands. The level of internal competition generated by the unique brand approach is not as high as in other approaches such as the multi-branding strategy. As such, managers in companies that use this strategy are usually not subject to immense or stiff competition among themselves. In addition, this strategy does not provide firms with the opportunity of reaping the benefits of other brands. For instance, the success of one brand cannot be associated with another brand. As such, the company needs to invest adequate resources in developing the features of other brands.
#2
An alternative branding strategy that could have been employed by Lego is the blend brand strategy. The blend brand strategy focuses on the incorporation of elements from various branding strategies such as line extension strategy, corporate brand strategy and unique brand strategy. This brand strategy can benefit the company in several ways. Application of elements of the line strategy in this strategy ensures that companies can add new products to the existing ones (Holland, 2013). As such, this strategy could have helped the company manage the products that it had added on its production chain. On the other side, the incorporation of element so the corporate brand strategy within the blend brand strategies ensures that companies can manage to unify their services and products under single gigantic brand. The blend brand strategy is often significant in situations in which firms have well-established reputations. The reputation of a company often takes into consideration all the services and products that are offered by the company (Grebosz, 2013). Taking into consideration the fact that Lego has already established its brand reputations, this strategy can enable the company witness enormous gains in the global market. Therefore, the blend brand approach happens to be the significant alternative brand strategy approach that Lego can employ in witnessing success in the international market.
Marketing happens to be a great concept among organizations that focus on accomplishing success in the market. The aspect of leveraging marketing approach across various markets seems to be extremely beneficial to many firms (Evers et al, 2012). Such an undertaking helps in saving resources, and ensures that a high level of consistency exists between all activities of an organization and in-market branding. However, the question concerning the effectiveness of global marketing is a matter that always presents problems to many organizations or marketers. This topic has been noted to be a frequent conversation among marketers across the globe. As a result, the concept of internationally-led marketing resources can be exposed to skepticism. Marketing departments in big companies often tend to adopt similar mechanisms when developing their global marketing approaches. In some situations central teams are established to oversee territories. In some occasions, such teams are fragmented into local or regional components that focus on their target markets. Marketers should realize that global marketing is effective as it helps in driving economies of scale and synergies, while preserving cultural considerations and local needs. One of the main factors that has been noted to be effective in the establishment of successful global marketing strategies is the incorporation of the element of balance within such approaches. In relation to this, my international marketing strategy will take into consideration five components or elements.
First, this market strategy will focus on the clarification of the products or services that are driven internationally alongside the clarification of services and products that driven locally. An international marketing strategy does not imply the absence of market-specific initiative and plans that are local. In the real sense, such plans and initiatives should be complementary. International marketing serves to establish parameters and framework within which the operations of local marketing can be executed. In relation to this, my international marketing strategy will focus on global or central levels in areas of brand guideline, branding, budgeting and strategic marketing planning among others. In addition, this marketing approach will focus on areas such as social media strategy, social media guidelines, global PR (Public Relations) and large-scale marketing (Hultman, 2011). Other areas that will be managed locally include tactical campaigns, outreach initiatives, PR initiatives and social media channels, local events and partnerships. Markets should have control over the locally-based channels that help in driving their success. One method that will be employed in accomplishing this task is dividing the global market into tiers. In relation to this, a tiered market will help in the identification of territories, which can help in driving high potential gains. Besides, such an undertaking allows top-tier markets to have access to bigger budgets, thereby granting them autonomy. For instance, a company can employ this approach in researching into the behaviors of local users so that the aspect of product development can be addressed. It is vital to note that the local and global areas of ownership can be different from one organization to the other. As such, defining these areas is significant in ensuring that firms avoid inefficiencies and friction.
Second, this international marketing approach will focus on comprehending the needs of the local market and establish a collaborative approach. Studies have shown that global teams should focus on comprehending local markets and develop close associations with local marketing teams for a global framework to be successful (Schilke et al., 2009). In relation to this, the globally defined plans and initiatives employed in this global marketing approach will incorporate a degree of flexibility to address various cultural differences in the market (Kaufmann & Roesch, 2012). Some of the mechanisms that will be employed in accomplishing this goal will be social media competitions, community meet-up and treasure hunt-based campaigns. Moreover, celebrity campaigns will also be used in markets where certain people are considered celebrities.
This global marketing approach will then focus on thorough planning with the aim of managing campaigns. At this stage, several aspects will be taken into consideration. A campaign manager will be appointed to be in charge of coordination and communication around the campaign. The aspect of cross-misunderstanding will be avoided by ensuring that the campaign team members are aware of the accountabilities of the campaign manager (Morgan et al., 2012). Thorough planning will then follow in which the aspects of responsibilities, deadlines and deliverables will be made clear to all persons involved. Consequently, expectations, deliverables and plans will be communicated to all members involved across various channels
Careful tracking and adjustment will then be made. Campaign managers will be required to be disciplined about the tracking of results. One of the aspects that will be taken into consideration at this stage is definition of key goals and metrics at the beginning of campaign at market and global markets (Stachowski, 2012). Besides, buy-in will be obtained from in-market teams followed by the maintenance of a centralized share template for updating market metrics on a daily basis. Lastly, the metrics will be reviewed on a weekly basis by video calls or phone calls followed by the adoption of the necessary actions (Leonidou, 2013). In addition, this stage will provide a suitable platform on which the best practices across the market can be leveraged. During this stage, discussions will be made vibrant and active enabling all local teams to contribute their views, which will be significant in addressing the issue of under-performance.
The sixth element of this global marketing strategy will involves consolidating and sharing of insights. Once the campaigns will be terminated, all the insights gained from them will be consolidated followed by the organization of debrief (Kumar et al., 2013). Here, the team members will be involved in the discussion of issues that worked and those that did not. Furthermore, the team members will be involved in the sharing and reviewing of results. This step will be vital in ensuring that adequate plans are developed for future campaigns.
The last aspect of this global marketing strategy will involve over-communication. Effective communication has been noted to be effective in all situations apart from campaigns. Being an international marketing role, implies that the marketer will be operating with colleagues around the world (Tan, 2013). Most of these individuals will be sitting several miles away. In such situations, marketers can develop a feeling of disconnection from their colleagues. Consequently, the disconnection between the marketer and other colleagues can lead to the disconnection of the plans, activities and strategies that are employed in campaigns. In relation to this, my global marketing strategy will involve the use of open communication channel in nurturing relationships among campaign team members and developing trust. Regular calls will be employed in updating team members on the events of the campaign, latest global plans and changes (Gabrielsson, 2012). Besides, the team members will be updated on the latest advancements in the international markets. Open communication channels will also be employed in the discussion of novel campaign ideas. Creation of a cohesive team in a campaign is vital in ensuring the success of the marketing process.
Reference List
Evers et al., (2012). “Stakeholders and Marketing Capabilities in International New Ventures: Evidence from Ireland, Sweden and Denmark.” Journal of International Marketing, 20(4), pp. 46-71.
Gabrielsson, P., (2012). “Marketing Strategies for Foreign Expansion of Companies Originating in Small and Open Economies: The Consequences of Strategic Fit and Performance,” Journal of International Marketing, 20(2), pp. 25-48.
Grebosz, M., (2013). “International Expansion of Brands by Realization of Co-Branding Strategy,” Journal of Economics and Management, 14(2), pp. 77-87.
Holland, J., (2013). “Aligning A Company’s People Strategy and Brand Strategy,” Journal of Brand Strategy, 3(2), pp. 245-258.
Hultman, M., (2011). “Export Promotion Strategy and Performance: The Role of International Experience,” Journal of International Marketing, 19(4), pp. 17-39.
Kaufmann, L & Roesch, J., (2012). “Constraints to Building and Deploying Market Capabilities By Emerging Market Firms in Advanced Markets,” Journal of International Marketing, 204), pp. 1-24.
Kumar, V et al., (2013). “Established Profitable Customer Loyalty for Multinational Companies in the Emerging Economies: A Conceptual Framework,” Journal of International Marketing, 21(1), pp. 57-80.
Leonidou, C., (2013). “Antecedents and Consequences of Eco-Friendly Export Marketing Strategy: The Moderating Role of Foreign Public Concern and Competitive Intensity,” Journal of International Marketing, 21(3), pp. 22-46.
Morgan, N et al., (2012). “Export Marketing Strategy Implementation, Export Marketing Capabilities and Export Venture Performance,” Journal of Academy Marketing Science, 40(2), pp. 271-289.
Naidoo, V & Wu, T., (2011. “Marketing Strategy Implementation in Higher Education: A Mixed Approach for Model Development and Testing,” Journal of Marketing Management, 27(11/12), pp. 1117-1141.
Robertson, A., (2013). “The Influence of Employer Branding on Productivity-Related Outcomes of An Organization,” Journal of Brand Management, 10(3), pp. 17-32.
Rubera, G., (2013). “Technology Versus Design Innovation’s Effects on Sales and Tobin’s Q: The Moderating Role of Branding Strategy,” Journal of Product Innovation Management, 30(3), pp. 448-464.
Schilke, O et al., (2009). “When Does International Marketing Standardization Matter to Firm Performance?” Journal of International Marketing, 17(4), pp. 24-46.
Stachowski, A., (2012). “The Niche Marketing Strategy in Internationally-Oriented Small and Medium Enterprises: A Literature Review and Lessons for New Zealand,” Small Enterprise Research, 19(2), pp. 96-112.
New UK car sales in September hit their highest monthly total for five and a half years as the latest 63-plate attracted buyers. The Society for Motor Manufacturers and Traders (SMMT) said 403,136 new cars were registered in the UK, a rise of 12.1% on the same month in .
The SMMT said the growth also reflected the fact buyers were returning to the market after a period of holding off. Buyers typically tend to replace new cars after three years, but because of economic conditions in recent years may have left that longer. It is three years since the ending of the vehicle scrappage scheme, which gave people incentives to trade in their old cars. Cars bought under that scheme would now be around three years old.
Another factor boosting sales was the type of financing deals available, which can lump together payments with servicing and even vehicle excise duty. Richard Lowe, an analyst at Barclays, said: “Attractive finance packages are offering consumers more clarity on running costs, which even with a more promising economic outlook is an important factor for those on a budget.”
Ford’s Fiesta remains the UK’s top selling car, with 20,600 sold in September. Vauxhall’s Corsa was in second place with 14,500 vehicles sold. Car sales have now risen for 19 months in a row. The SMMT’s chief executive, Mike Hawes, said: “The UK market is reflecting growing economic confidence. Robust private demand has played a major role in this growth, with customers attracted by exciting, increasingly fuel-efficient new models which offer savings in the cost of ownership.” But he added
that the UK car market was likely to remain strong.
“As we head into the quieter months, I suspect we’ll see sales hold firm, keeping the UK market zooming ahead of our European counterparts,”. The UK car market is the second biggest in Europe after Germany. So far this year, UK buyers have bought 1.79 million new cars, compared with Germany’s 2.22 million. The gap between the two has shrunk 6% since this time last year.
Meanwhile, a package of measures aimed at bringing down motoring costs, including insurance premiums, has been announced by the government. It was reported that there are plans to pilot fuel price comparison signs on major roads and freeze the cost of the MoT test. The statutory maximum price of the MoT test for a car will be pegged at £54.85 until 2015.
The inflated cost of fuel on major roads is among the most common complaints among drivers. In some areas petrol and diesel can cost 10p per litre more at motorway service stations. The government wants to install a series of price comparison signs which will show the cost of fuel at all petrol stations along any given route.
Ministers are also promising to save motorists money by tackling what they call the compensation culture.
Section A Questions
In total there are 50 marks available for this question. The marks for each question are given at the end. It is important to answer as fully as possible. Marks will
also be awarded for clarity and for the use of correctly labelled diagrams where appropriate.
1. Using appropriate diagrams, explain why car sales in Britain have increased in recent times. (8 marks)
2. Describe how the vehicle scrappage scheme influenced the market equilibrium for older cars. Justify and explain your answer using appropriate diagrams where necessary. (10 marks)
3. What factors are likely to influence the price elasticity of Ford’s Fiesta car? (12 marks)
4. Outline the package of measures mentioned in the article designed to bring down costs and stimulate demand. (8 marks)
5. Explain the likely effect upon price competition of installing fuel price comparison signs on major roads. Make reference to the market structure of petrol stations within your answer. (12 marks)
Section B
According to a policymaker at the Bank of England, interest rates are on course to rise next spring and could be raised sooner if there are signs that falling
unemployment is causing inflationary pressure. Martin Weale, an external member of the Monetary Policy Committee (MPC) said the Bank could raise rates before next May’s General Election.
Mark Carney, Governor of the Bank of England, has however stressed that the MPC is in no rush to raise interest rates and that any increases would be gradual. The Bank ended the direct link between the rate of unemployment and interest rates when it targeted other measures such as wage growth and business investment instead.
The Bank is betting on an increase in productivity as involuntary part-time workers take on more hours, keeping inflation close to the Bank’s 2% target. It predicts spare capacity in the economy will be absorbed gradually, paving the way for stronger wage growth.
Some surveys suggest that firms are already running close to capacity. This means increased demand will put pressure on input costs, including wages. Workers will then use higher incomes to buy more goods and services, further pushing up prices and wages.
MrWeale said average earnings could rise more quickly than expected in the coming months. ‘We certainly expect wage growth to pick up during the course of this year.
If it picks up by more than we expect and there isn’t an offsetting improvement in productivity then the case for an earlier rate rise will certainly be there,’ he
said.
Fathom Consulting, an economic consultancy firm run by former Bank of England economists, has warned of the risk of a “wage price spiral” in Britain although this view is not shared by all. Some economists such as Dame DeAnne Julius, have said that Britain’s competitive, flexible and open economy mean this risk is low.
The Bank of England believes that the UK is running between 1% and 1.5% below its potential and any increase in employment would have little effect on inflation.
David Miles, another external MPC member, also reminded borrowers this week that they should start thinking about the impact of a rate rise on their personal finances.
“It is important that there is a clear recognition by borrowers and lenders that interest rates will not remain at this level for many years to come,” he said. “They need to think very carefully about what’s going to happen when the cost of that mortgage moves up.”
Mr Weale, who has been described as a monetary policy “hawk”, joined Spencer Dale and former MPC member Andrew Sentance in voting for a small rate rise in 2011 to tackle high inflation.
Section B Questions
In total there are 50 marks available for this question. The marks for each question are given at the end. It is important to answer as fully as possible. Marks will
also be awarded for clarity and for the use of correctly labelled diagrams where appropriate.
1. According to the article, the Bank of England is expecting the UK rate of interest to increase next year. Explain why this is likely to happen. (8 marks)
2. Using appropriate diagrams, outline the likely impact of an increase in interest rates upon the economy. (10 marks)
3. Explain what is meant by the term ‘wage-price spiral?(8 marks)
4. Why would inflation be low in a ‘competitive, flexible and open economy’? (12 marks)
5. Suppose that you are working as an economist at the Bank of England. Outline the policies you would recommend to the UK government to overcome the economic problems outlined in the article?(12 marks)
(I just need short answers for each question and do diagrams if required) PLEASE
SAMPLE ANSWER
Introduction
The increase of 12.5% in average monthly motor vehicle sales in the last five years UK is largely attributed to the hard economic times that kept the UK consumers from the car market. The good financing deals available and also the optimistic economic prospects in the UK looked promising. The economy of a country improves only when the disposable income of its citizens also improves. The average household in an economy accounts for almost thirty per cent of the total aggregate demand for all goods and services in an economy. The relationship between disposable income and consumer spending is positive. The consumption function gradient in these cases is positive and it’s known as the marginal propensity to consume. As the citizen’s income increases so does their consumer demand which results in more purchases of vehicles in these case. In these case the marginal propensity to consume has increased has resulted in more consumption of vehicles at each level. This is in accordance to Keynesian theory. The other factors like the stoppage of the scrappage scheme and the good finance deals are just but incentives to boost spending in order to increase the circulation of funds in the economy.
The Consumption and Saving Function
Consumer spending/saving Income/saving C= a+ cYd
S = -a +s Yd
a
-a Disposable income (Yd)
In the short run, there will be an outward shift in aggregate demand for older vehicles as the demand for older vehicles will increase due to the scrappage scheme incentive but in the long run the aggregate demand for older vehicles will shift inwards as people begin to feel the effects of the promising economy and the good finance deals and discard the old vehicles while their prices will also drop to P2
Price P AS1
P1
P2 AD1
Y2 Y1 AD2 Real National Income
The price elasticity of ford will be influenced by the removal of the scrappage scheme, the UK citizen’s preference for exported products and the price of the vehicle. Its fuel efficiencies and durability will also affect its elasticities.
The subsidy granted by the UK government under the scrappage scheme is intended to stimulate the demand for new vehicles together with the affordable financial deals that have been provided by the government. The insurance premiums, freezing the costs of Mot tests and the affordable fuel sign projects are the measures taken by the government to bring down motoring costs and stimulate demand.
The eventual results of reduced fuel price signs would be that the Petrol stations that charge higher prices will lose their clients and in the long-run the prices of fuel will come down due to the natural laws of demand and supply. The demand for the affordable fuel will increase and the rest of the fuel stations will also reduce their prices.
Part B
In the long run, due to the increase spending by the UK citizens, the aggregate demand increases and the economy grows towards full employment of all the factors of production. Most firms will increase their prices in order to increase profits margins while the shortages of input factors will increase the firm’s costs of production. Inflationary gap will occur and the UK government will increase the interest rates to control the inflationary gap. (Blanchard, 2011)
P2
P1 AD2
AD1
National Output
The Interest rates would make goods and services more expensive and curb consumer demand from AD2 to AD1 hence the suppliers would also because of reduced price from P2 to P1 and they will supply less goods leading to reduced expenditure. (Sullivan, 2003)
Wage price spiral occurs whenever the price raises leads to even higher wage demands by workers as they try to live and maintain their real and normal standards of living. The higher wages that are above the gains in the productivity of labor results in an increase in per unit cost of labor. In order for firms to maintain their normal profits they also increase their prices. The processes end in a cycle over again and the inflation ends up being out of control.
The inflation would be low in the UK as a result of government interventions to maintain it that way. For example, between the years 1997 and 1998, the Bank of England increased the interest rates from an average of 6% to 7.5% these reduced the smaller inflationary gap’s trend that had started getting out of control.
The policies that I would recommend would be the ones to control inflation as the excess demand for motor vehicles and other services increase due to improved economy, inflation would certainly occur in the long run. I would recommend the use of monetary policies such as the use of interest rates to reduce the level of the actual aggregate demand. Higher interest rates would reduce the aggregate demand in the following ways; a). They will discourage borrowing in house-holds and also by companies. b) Increase the general rate of saving as the opportunity cost to save has also increased and finally the general increment in mortgage interest rates of payments will also reduce the disposable effective real income of the homeowners which will reduce their ability to incur extra expenses or spend. Fiscal policies such as higher taxes and other policies like wage control and supply side policies will assist the government to control the economic problems in the UK.
References
Sullivan, S. S. (2003). Economics: Principles in action. Upper Saddle River, New Jersey
