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O2 Transfer in Human Body

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O2 Transfer in Human Body

Oxygen (O2) is a significant element in the human body that plays a crucial role of sustaining life and enhancing metabolic process in human body. Despite life sustenance, oxygen helps in terminating destructive bacteria that human body does not need and leaves the important bacteria in human life safe. Chemical engineering treats human body as a chemical plant with air acting as both input and output to ensure smooth operation. There are also other input including food and water as well as other output such as feces and urine. In addition, complete circulation of oxygen requires pumping mechanism in the human body that involves two important organs, the heart, and the blood vessels. Chemical engineering treats circularly system as a chemical process that involves the heart as a pump while the blood vessels act as passageways for oxygen. Generally, chemical engineering uses mathematical equation to show a complete oxygen transportation process in the body. Moreover, chemical engineering involves two basic terms including convection and diffusion that helps in calculating oxygen transport in the human body. Convection is more common in the large blood vessels like arteries while diffusion is more likely to occur in the small blood vessels such as capillaries and veins.

The two main mathematical equations involved in determining oxygen transport are the overall flux that describes oxygen flow via pipes and Fick’s law that explains diffusion of fluid along a concentration gradient.

The overall flux

NA,z = YA ( NA,Z + NB,Z ) – DA,T∇c

Convection Diffusion

Fick’s law

JA,z = −DA,z∇c

Describing Oxygen Transport in Human Body

Oxygen moves in the human body in the breathing process through nose and mouth then goes via the lungs and dissolves in the water lining of alveoli. Oxygen then sticks to red blood cells while passing through the alveoli capillaries.

Circulatory System

Circulatory system plays a significant role in transporting various materials in the human body. Circulatory system ensures that nutrients, water and oxygen are transported to the body cells while transporting waste products produced by body cells such as carbon dioxide away from the body. The circulatory system acts as a highway with network throughout the human body and it involves the heart, and the blood vessel. The heart is responsible in pumping blood and maintaining blood flow in the whole of the body system while the blood vessels transport blood away from the heart to other parts of the blood. The whole of the circulatory system transports oxygen from outside the body into the blood stream and carries away waste from the blood cell, carbon dioxide to the outer part of the body.

The Blood Vessels

The blood vessels function as pathways in the human body through which the blood travels. Blood vessels include the arteries, veins, and capillaries that have distinct functions. The arteries carry blood away from the heart while the capillaries link arteries with veins as veins transports the blood back to the heart during blood circulation process. Initially, the heart usually pumps blood through the arteries (dorsal aorta) before arteries supply the blood to smaller arteries in ensuring that everybody cell receives oxygenated blood. Veins however receive blood from the capillaries after the blood has exchanged the two important gases, oxygen, and carbon dioxide and transports the waste rich blood back to the circulatory organs, lungs and the heart. Capillaries play a significant role of linking arteries with veins and further carry oxygenated blood to the other body parts thus enriching the tissues with oxygen. There are also thin capillary walls that provide a surface area for gaseous exchange by letting the red blood cells inside the capillaries to release oxygen to other surrounding tissues as the tissues release their waste products such as carbon dioxide that is absorbed in the red blood cells.

The Blood

The blood is a very significant substance in the human body system and in the circulatory system because it transports oxygen that is helpful in the life of the body tissues and helps in releasing carbon dioxide, which is harmful to the tissues. For a human being to be alive, the human tissues must receive oxygen, which is transported by the blood. Blood also carries very vital elements in the human body that include the red blood cells, water, oxygen, nutrients and waste products that provide life to the body cells. The blood transfers oxygen to the body tissues after taking it from the lungs and aids the tissues by carrying their waste, carbon dioxide from the tissues to the lungs.

The red blood cells continuously run throughout the body by transferring oxygen to the body tissues and carrying carbon dioxide out of the tissues to the lungs. The red blood cells normally take oxygen from the lungs and releasing it by pressing its way through the body with the aid of capillaries. It is normally made up with a chemical known as hemoglobin, which is rich in iron that attracts oxygen to the red blood cells. Usually, as the blood moves through the lungs, oxygen molecules are attracted to the hemoglobin but as the blood goes through the tissues, it releases oxygen to the cells. Finally, after releasing oxygen to the body tissues, the oxygen-less hemoglobin combines with the tissues’ waste such as carbon dioxide and transports them away from the tissues back to the lungs. Nevertheless, plasma, a thick container that carries the red blood cells, usually occupies 55% of the blood capacity and it is composed of nutrients, waste products and the clotting protein.

Diffusivity: DA, B

Diffusion coefficient is a function that relies on the size and atomic component of the diffusing substances and the characteristics of the means. Tiny molecules easily go through biological system such as oxygen because they have higher diffusivity while bigger particles slowly pass through because they have lower diffusivity. Additionally, some medium with heavy or denser tissues experience little diffusion coefficient while less denser medium have higher diffusion coefficient.

Convection and Diffusion

Conviction had been earlier defined as the transfer of bulk material sandwiched between border surface and moving fluid while diffusion is the act of net motion of molecules in the path of lower concentration. Conviction is mainly evident in the larger blood vessels while diffusion mostly takes place in the small blood vessels. Nevertheless, looking at the overall flux equation based on conviction, what is normally considered is the rate at which oxygen flows because of flowing blood hence shown in the direction of the blood flow.

NA,z = CA + VA,z

By considering the conviction, the oxygen concentration within the blood vessels is regarded as constant as the small vessel oxygen moves out of the veins and to other neighboring tissues thus reducing the concentration. It is also worth noting that diffusion is quicker outside the capillary walls that normally have concentration profile. Additionally, convection usually occurs within the vessel whose concentration of dissolved oxygen presumed constant.

NA,z = YA ( NA,Z + NB,Z ) – DA,z∇c

Importantly, normally while the vessels reduces in diameter, convection’s dominance also reduces thus triggering a significant increase in diffusion.

Bio-hybrid Devices

Bio-hybrid devices is an artificial mechanism used in substituting tasks of damaged organs through amalgamation of cells with manmade constituents (polymer) so that they can discharge proteins that are regarded useful for the operation of particular organs. These devices further aid in defending organs from being damaged by the recipient immune system. Moreover, the devices may be explained as what enables the body to interchange and take the implant cells without denunciation from the immune system.

These devices may be helpful in averting various diseases such as diabetes. In the case of diabetes, especially amongst the genetically predisposed individuals, a device called artificial pancreas may remedy numerous challenges involving replacement of insulin that produces tissue in diabetic patients. Moreover, in the case of liver failure, the biohybrid artificial liver (BAL) which is an extracorporeal supportive device may represent a significant therapeutic strategy for people suffering from liver failure. The BAL system is composed of working liver cells that are aided by a synthetic cell culture substance and therefore serves as a link for the patients before a donor organ is provided or the liver is redeveloped.

Biohybrid consist of both intravascular and extravascular where intravascular are inserted within the large blood vessels while the cells are put outside the blood source. In the case of intravascular biohybrid device, oxygen moves from the capillaries to the tissues. On the other hand, there are extravascular biohybrid device that are put on the external part of the vascular section while the cells are condensed in tissue that is encircled with red blood cells. This provides a significant role of stimulating blood vessel growth hence permitting sufficient oxygen mass movement within the device.

Works Cited

Dorian, AI; 2009. The development of bio-articial organs. Medical Research Reviews 2009; 28(2):187-252-296

Jean Krudener, “circulatory system,” in Hillendale Health, web:02/25/2012 <http://hes.ucfsd.org/gclaypo/circulatorysys.html>

Lucy P , Hugye D, Vazeou P, Gentile T, Danne K,2010. Maintenance of narmoglycmia by biohybrid device. Science 2010; 254:1786-1784

Provost P ,2010, Application of CN79 hydrogel in Bioyhybrid encapsulation: mathematical model.

Transplant Proc 2010; 27:274493-3895

Wadi (Valley) Hanifa History and Geographic

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Wadi (Valley) Hanifa History and Geographic

Introduction

This paper posits to investigate the history and current state of the Wadi Hanifah, also referred to as the Hanifah Valley. The Wadi Hanifa is the most important and longest Wadi (valley) in the vicinity of Riyadh. In the arid region of Najd located in central Saudi Arabia, it is an exceptional natural geographical feature. The Wadi is a natural water drainage route which is fed by numerous offshoots for an area of approximately 4,000 km². It flows to the south-east from the north-west, passing via the western boundaries of Riyadh in its central part. From this central point, the Wadi includes an uninterrupted watercourse due to the every day release of 650,000 cubic meters of raw as well as treated water (Al-Homaidan 25). This uninterrupted water flow has produced a unique phenomenon of all-year around green areas in a scorched environment. Until recent times, sections of Wadi Hanifah, particularly those neighboring Riyadh, had been utilized in a destructive and environmentally disparaging manner. Sections of the Wadi were exploited as dumping grounds for garbage, while other sections were mined for stone or harvesting of sand (Zawahri 4).

As a result, substantial portions of the Wadi have been disfigured and polluted while other sections of its landscape have been extensively altered. The natural water flow in several locations has been blocked, thus producing stagnant pools as well as marshy environments.

Wetlands in the south of the Wadi are principally well-liked for recreational purposes such as fishing, picnics, and swimming. As a result of the wanton degradation of the Wadi, the Higher Commission for the Development of Arriyadh, also referred to as the Arriyadh Development Authority (ADA), carried out comprehensive studies of Wadi Hanifah. The rationale of the study was to develop a strategy for the rehabilitation of the wadi (Vidal 6).

CONTEXTUAL INFORMATION

Climatic Conditions. Rainfall in this area is quite limited and averages at approximately 85mm annually. Over 50% of that amount comes about in March and April. The temperatures in the Riyadh region range from 6.4°C on average in January to 42.9°C on average in July.

The Historical Background. The Wadi Hanifah is of significant historical value. It derives its name from the people of Bani Hanifah, who inhabited the Wadi at some point in the 5th century AD. The wadi is a substantial productive strip that in the past served as an agricultural hub, supporting human settlements in its vicinity. The Wadi Hanifa It also holds a big number of heritage sites that include human settlements, defensive towers and walls, as well as dams. Several of the historical structures in the Wadi are built of sun-dried mud bricks, although locally mined stone is also extensively utilized. Among the most significant heritage sites found in the Wadi is Al Dir’iyyah, the native land of Al Sa’ud, the Saudi Arabian royal family (Wilhite 59).

Site and Surroundings. The Wadi Hanifah extends for approximately 120 km in length. It has a depth that varies from 10 to 100 meters and its breadth varies from 100 meters to 1 km at its widest fringes. It offers a natural drainage route for over 4,000 m² of open area found along its span. A series of approximately forty smaller offshoots, referred to as sha’ibs, drain their water into the Wadi Hanifah and these tributaries can be approximately 25 km long. These tributaries include, Wabir,

Al Ubaytah, Safar, Al ‘Ammariyyah, Al Mahdiyya, Laban, Al Awsat, Laha, and Nammar. The tributaries located at the eastern side include Batha’, and Al Aysan. In cross-section the deepest part of the Wadi is located in the centre. This is where the watercourse is positioned. This is surrounded on both sides by a level area typified by deposits of clay soil as a result of flooding in the Wadi and able to sustain several agricultural as well as grazing activities. The level areas are broader in the middle and northern parts than in the southern parts (Kassas 125).

State of the Wadi Before and After Contamination. The Wadi Hanifah is segmented into five zones by its development strategy plan. The five zones are based on disparities in the ecosystem and levels of latest exploitation and resultant environmental degradation. The two least developed sections of the Wadi are located at the north of Riyadh. These sections comprise of several traditional settlements as well as farmlands. The traditional city of Al Dir’iyyah is found in this area (Philby 62). These zones are generally well utilized and have not been degraded as other sections parts of the Wadi. The most prevalent forms of degradation in the Wadi result from mining, dumping, as well as pollution. In these two zones primarily hold private farms which are not subjected to the contaminated water that drains into the Wadi further south. Their comparative distance from Riyadh also plays a considerable function in this regard (Danhof 62).

The third zone crosses through the western sections of Riyadh. The urban part of the Wadi expands from the Al ‘Ilb dam in the north to the region of Al Masani’ in the south. This is the most degraded section of the Wadi due to the numerous environmentally disparaging activities that occur in this region. Quarrying and dumping are the most prevalent in this region as a result of the establishment of a variety of light manufacturing projects (Philby 65). The prevalence of a variety of unrestrained construction activities, as well as the discharge of contaminated water into the Wadi also contributes immensely to the environmental degradation of the Wadi.

The fourth and fifth zones expand southwards from the region of Al Masani’. Although less contaminated than the third zone, this fourth zone however, suffers from the release of contaminated water, which results from numerous activities, including the tannery. The fifth zone expands from Al Ha’ir dam, which has a holding capacity of two million cubic meters, to the end of the Wadi. This zone is also referred to as the ‘Lakes Area’. This part of the Wadi receives an uninterrupted release of water. Since the building of the Al Manfuha treatment station, the primary water treatment plant in Riyadh, approximately two-thirds of the released water in the Wadi has been treated to tertiary degrees. Water that is untreated water also finds its way into the Wadi. Nevertheless, by the time the water reaches the fifth zone, it is comparatively well filtered and a substantial amount of its organic dissipate has been removed by means of natural oxygenation processes. The reed beds that grow along the waterway supply physical filtering and hence oxygenate the water (Murray 109).

On the other hand, in the fourth and fifth zones, there are issues of water stagnation as well as the resultant creation of swampy conditions. The region ends in a sequence of substantial interlinked lakes. A diversity of paved and unpaved infrastructure crisscrosses the Wadi. A number of the roads are used as throughways linking areas alongside the two parts of the Wadi. The comparatively high level of traffic in the Wadi has resulted in problems that relate to air pollution. A variety of vehicle lubricants are poorly disposed of, particularly in the central section of the Wadi. The Wadi has incredible prospects as a recreational space for Riyadh people. In effect, the southern sections of the Wadi are quite popular with picnics. Regrettably, no services are offered for the people who go out for picnics in the Wadi. There is also the absence of regulation regarding issues like cleanliness and hygiene and sections of the Wadi, particularly in the south, demonstrate the impact of heavy littering from persons who utilize the Wadi for picnics (Homer 62).

The Wadi Hanifah Development Project. The wide-ranging development plan consisted of five interlinked components. The first was environmental classification. This constituent aimed at establishing the ecological characteristics of the diverse zones of the Wadi. It provided mechanisms that would ascertain the Wadi’s ecological sustainability, and create a structure for positive and sustainable interface between the Wadi and the Riyadh city (United Nations Development Program 20). The second component emphasized issues that relate to management of water-demand. The release of water into the Wadi is projected to increase from the present 650,000 m³per day to 2,000,000 m³ per day in the next two decades. This component of the project aims to address the problem of the rising amount of contaminated water being released into Wadi Hanifa. This is from diverse sources such as the slaughterhouse and the tannery. The management of water-demand would offer answers to the problems of swampy conditions. Additionally this component focuses on implementation of natural oxygenation processes for the water that passes through the Wadi (Haddadin 4).

The third constituent of the plan included putting in place efficient land-use plans. The objective was to end improper and contaminating land utilization such as mining, dumping as well as industrial activities that discharged contaminated water into the Wadi. This component also dealt with the severe and chronic problem of private encroachment on public land in the Wadi (Amery 3). The project would allow recreational, agricultural, touristic and residential utilization, as long as these do not cause environmental degradation. In addition, significant sections of the Wadi would be confirmed secluded historical or natural zones (Wenche 90).

The fourth constituent of the plan concentrated on rehabilitating the Wadi and rehabilitating its previous ecological balance. This included execution of physical works like clearing sections that were subjected to dumping as well as filling up open quarries. This constituent would also put into operation the redesigning of the infrastructure in the Wadi in order to eradicate air pollution from automobiles and minimize several other harmful environmental impacts (Wolf 51).

The fifth component of the project dealt with the issue of regulating development in the Wadi. This included implementing a monitoring program that would follow up on the environmental effects of the activities that occur in the Wadi. It would also monitor the water quality in the Wadi. This component of the project offers a check and balance system for the different other components in the project (Al-Nuaim 5).

CONCLUSION

The Wadi provides several opportunities. It offers a spectacular and substantial green area that comprises of several heritage sites. It has prospects of offering high-quality and reachable recreational, cultural, touristic as well as environmentally preserved regions that may serve the population of Riyadh and tourists from other places. If sustainable development policies are implemented, the resultant arrangement would significantly improve the Riyadh’s quality of life. The Wadi has the ability to sustain income generating activities that would relate to recreation and tourism. This would provide numerous employment opportunities for the population. It would also sustain considerable agricultural activities, which would provide income streams and food. It is noteworthy that there is a need to shield the Wadi agricultural regions from urban sprawl.

Works Cited

Al-Homaidan, S. Water Chemistry & Algal Vegetation in Saudi Arabian Reservoirs. IA: Iowa University Press, 2009. Print.

Al-Nuaim, M. Profile of the Contemporary Development of Riyadh. Royal Embassy of Saudi Arabia. 2 (2010): 5. Print.

Amery, H. Water Conflicts in the Middle East: Looming Threats. The Geographical Journal. 45 (2010).3. Print.

Danhof, C. Revolutionizing Agriculture: The Agricultural Press. N.Y: Columbia Press, 2004. Print.

Haddadin, F. Water & the Peace Process. Geographical Journals. 168 (2009):4. Print.

Homer, T. Environment, Scarcity, & Violence. Princeton: Princeton UP, 2009. Print.

Kassas, M. Ecology & Desertification Management: Geographic Perspectives. 29 (2009): 125. Print.

Murray, R. Rivers of Fire: The clash over Water in the Middle East. Lanham: Rowman & Littlefield. 2010. Print.

Philby, W. Southern Najd. Geographical Journals. 45 (2010): 62–65. Print.

United Nations Development Program. Human Development Reports 2009: Poverty, Power & the Global Water Crisis. N.Y: Palgrave, 2009. Print.

Vidal, P. What the Arab World Does When Its Water Dries Out: The Observer.23 (2011): 6. Print.

Wenche, E. Casual Trails to Conflict. Boulder: Westview Press, 2010. Print.

Wilhite, S. Understanding Drought Phenomenon. Lanham: Rowman & Littlefield. 2010. Print.

Wolf, A. Conflict & Cooperation in Global Waterways. Water Policies. 1 (2010): 51. Print.

Zawahri, M. Stabilizing Riyadh’s Water Supply: Third World Quarterly. 45(2010): 4. Print.

Types of Central Tendency and Variance

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Institution

Types of Central Tendency and Variance

Mean

Mean would refer to the average summation of the dataset. Then later divided by the number of variables listed.

Grade 1 Grade 2

Mean 74.5714 77.2857

The mean for grade 1 is (74.57) and grade 2 (77.28). Grading for 2 is higher.

Mode

Mode would refer to the value that is occurring several times in a given dataset.

For instance, test 2 has 5.5 hrs being repeated, test 1 has 8.5 hrs appearing twice.

Median

The median is the middle score in a set of given numbers.

Grade 1 Grade 2

Median 86.0000 77.0000

Variance

Variance would be the average in terms of variability. This by obtaining the mean and then squaring the differences and later making them positive. Afterwards the sum squares id divided by the values of the dataset.

Grade 1 Grade 2

Variance 555.286 267.571

References

Kothari, C. R., & Garg, G. (2014). Research Methodology: Methods and Techniques. New Delhi:

New Age International Publishers.

Kothari, C. R. (2014). Research Methodology: Methods and Techniques (3rd ed.). New Delhi:

New Age International (P) Limited.

Lululemon Marketing Analysis

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Lululemon Marketing Analysis

Introduction

Lululemon athletic a is an athletic wear store selling high quality performance wear mainly meant for women and was founded in 1998 by Dennis Chip Wilson in Vancouver, British Columbia. The primary focus is women leading healthy lifestyle and are determined to achieve it in a more comfortable but fashionable manner. Lululemon currently operates 45 stores in Canada and 70 in the US selling innovative and technical apparel products that provides performance, fit and comfort (Tucker Web). The company boasts of her ability to incorporate fashion and style in their products, which has ensured her strong brand recognition and high number of sales. The company’s concentration in Canada is much better especially brand awareness than in the US despite the fact that it has more stores in US than Canada.

Current Market

According to Tucker, Lululemon identifies itself with a high quality as well as exclusive yoga and sporting apparel strictly meant for female (Web). It operates in numerous stores across North America, Australia and New Zealand where it offers women’s wear for yoga, dance, running and other sport events. Most of the company’s customers are high-income women that are insulated to prices and the downturn of the economy as was evident in 2008 when the sales grew despite economic challenges. It has more stores in U.S compared with Canada that contributed to the $452.9 million revenue and gross of $ 223. Lululemon intends to make her US brand as better as the Canadian one because US has more stores than in Canada. The company is putting a lot of effort boost her brand awareness in the US market (Tucker Web). The organization has successfully returned to the community that gives it support such as hosting free yoga events around town. The company focuses on high quality products, which attracts higher prices for her upper income women target. Lululemon ensures prestigious and exclusive products that act as fashion forward and shows a healthy, well off lifestyle. The expensive high-end workout apparel has seen it standing even amid recession in 2008 due to the current market perception of the brand.

Target Market

Lululemon’s target market is 18-34 fit, health conscious and fashion forward, high-income females who are the company’s vital customers. The active young thinking woman who are appearance conscious, physically fit and well educated. Lululemon targets mostly the upper and middle class females residing in North America with the niche marketing strategy by pursuing a narrowly defined market segment. The niche market strategy has greatly contributed to the success of the company thus making it remain a primary market target. In the recent past, the company has been striving to gain reach the male workout market for some time (Tucker Web).

New male clothing brand with very high quality is another target market that the company looks forward to dominate. The males targeted are educated and physically active and appearance conscious aged between 16 and 45 living in North America. It is also targeting the pre-teen girls who may not be identified with the more mature females as well as more for more value proposition within all brands of the company. The target customer for Lululemon is very complex, active as well as health and is aimed at carrying out product expansion and matching the lifecycle and social status of those women.

Current Marketing Strategy

Acording to Ellis, Lululemon’s goal is to implement brand extension and reposition brand awareness that may result into 10% total growth as well 5% female growth within the next one year (Web). The strategy also involves holding a challenge in five Canadian cities and general 10% increase until 2025. The company has laid down various marketing strategies that may boost her sales and cover wider market. There are special marketing displays proposed by the management that helps in displaying products in stores for customers to distinguish between the products. Marketing displays however would however not apply to maternity clothing as while the Baby Belly Tank will be mixed with other active wear and loungewear products. The company uses strong pricing power as well as the strategy of getting product right and keeping it scarce.

According Ellis, Lululemon’s marketing strategy includes cupcakes, camp out, dances and running clubs, which are summed up as grassroots marketing that is very inexpensive (Web). The company is planning to enter new markets Hong Kong and UK with ambassadors who greatly support them. The ambassadors integrate with the local community as a way of expanding their market share. Additionally, the company encourages the utilization of social media as a means of interacting with the public.

According to Tucker, Lululemon has been building on brand recognition by letting the franchisee to take part of the cost (Web). The company also uses social media such as Facebook, twitter, YouTube to reach their market by posting pictures with short, catchy tag lines. The company further uses video demonstrations to launch new products as well as multifaceted social media campaign to educate the users on the usability of the product (Ellis Web). Moreover, Lululemon realizes the diversity of culture in different countries making her marketing messages vary between Canada, Asia and Australia. Generally, the grassroots marketing adopted by the company is deeply based on the customers’ desires since the company believes in being pulled into the market instead of being pushed (Malka Web).

Industry

Lululemon operates in a very profitable niche in the wider sportswear by offering services to customers that are more affluent and play a major role in her sustainability. The company United States sporting apparel provides the largest sportswear market representing almost 41% of the global sales then closely followed by the European Union market with about 38%.The company’s yoga wear has established itself as a prominent brand in the female sportswear market prompting them to charge maximum price for the products (Malka Web). Lululemon boasts as one of the most productive retailers in the sportswear market with several other opportunities of growth in various categories such as its recent expansion of merchandise for both men and youth.

However, it faces stiff competition from Gap Inc.’s Athleta brand as well as other businesses operating on yoga apparel. Moreover, it does not own patents in technology, fabric or even procedures they use in manufacturing hence exposing risk to their products. Competitors may decide to duplicate their products and technologies and just make away with it. The primary competitors of Lululemon are small businesses operating individual yoga wear stores as well as retailers situated in gyms and fitness places. This makes it harder to compete the company because of her many resources and popularity it enjoys amongst the yoga enthusiasts (Malka Web).

However, on a higher scale, the company faces stiff competition from the sport industry giants including Nike and Adidas that are incredibly larger than Lululemon. Nike and Adidas make huge sales and enjoy a wider presence both online and in their very own numerous stores (Ho Web). The company further faces risk of losing customers who may substitute their products with lower priced apparel because the Lululemon’s products are very expensive and only meant to serve the rich. It is also worth noting that the market that the company concentrates much on, North America does not have a larger capacity of expanding due to the company’s brand premium niche positioning.

Sporting apparel in US generated about $9.2 billion in 2009 although it went down the following year because of the economic downturn by almost 5%. It is apparent that yoga industry is really increasing in size as Americans spend more than $5.7 billion in it and the same growth is experienced in sport apparel, workout gear and leisure activities. It is incredible to see Lululemon outperforming competition and is considered as one of the top performing apparel industry stock due to their suppliers who are the main stakeholders (Ho Web).

Product Review

Lululemon offers several products including jackets, hoodies, pants, shorts for sexes and bras, underwear and tank tops that are meant for women. According to Ekachakra, pants are provided either in regular or tall lengths and that they are pre-shrunk to make sure there is an initially quality fit (Web). Their products are believed to flatter women/s derriere that really appeals to women of all classes. Additionally, Lululemon boasts of its cutting edge and high quality fabrics that are integral in delivering maximum operation and body fit. It has greatly collaborated with some other leading suppliers that have aided it in developing trademarked fabrics that removes moisture from the body (Ekachakra Web).

According to Ekachakra, the uniqueness of the fabrics further facilitates drying process and protect against wind and rain (Web). The fabrics also have matte finish that enables it to be thicker compared to spandex hence assisting in avoiding unappealing shine. Additionally, the Lululemon products are flat seams, tear-out labels and thumbholes on their sleeves and pockets that are very helpful in keeping things such as audio players. Lululemon experiences expansion and growth aimed at offering products that are more appealing for men and youths. It also offers some fitness related accessories such as water bottle, yoga mats and DVDs that are characterized with the company’s high quality nature.

Works Cited

Ekachakra. Yoga Product Review: Lululemon Athletica – Worth the High Price? Yoga for Flowers 30 Aug. 2006. Web. 22 Nov. 2013. http://yogaisforlovers.wordpress.com/2006/08/30/yoga-product-review-lululemon-athletica-worth-the-high-price/

Ellis, Debra. Lululemon: Corporate Misstep or Targeted Marketing? Socialmediatoday 16 Nov. 2013. Web. 22 Nov. 2013. http://socialmediatoday.com/debraellis/1924476/lululemon-corporate-misstep-or-targeted-marketin

Ho, Solarina. Analysis-Lululemon seen Growing in Lucrative Niche Market. Reuters 2 Nov. 2010. Web. 22 Nov. 2013. http://www.reuters.com/article/2010/11/02/idUSN0116446120101102

Malka, Dean. Strategic Review of Lululemon Athletica SlideShare Inc 2 Jan. 2013. Web. 22 Nov. 2013. http://www.slideshare.net/deanmalka/strategic-review-of-lululemon-athletica

Tucker, Erika. Why is Lululemon so Successful? Global News 6 Dec. 2012. Web. 22 Nov. 2013. http://globalnews.ca/news/316659/why-is-lululemon-so-successful/

This tale type is a combination of different tales that include magic, monster tales, unnatural cruelty, captives and fugitiv

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Tale type

This tale type is a combination of different tales that include magic, monster tales, unnatural cruelty, captives and fugitives. It covers magically empowered rebels who attempt to overthrow a failed administration. Unnatural cruelty in the tail symbolizes results of bad governance while captives and fugitives which are also important elements in the tale represent consequences of war. This fairy tale tackles some of the societal and political problems as well as norms and expectations of good leadership. The War of Salvation is a fairy tale pointing out some of the consequences of failed administrations.

The War of Salvation

Long, long ago there was a fiery battle in Ubagdu that led to assassination of King Despot and his family. Children and women were the main casualties. Foreign countries withdrew their citizens as a way of protecting them against the war. Several bodies lay on the roads but there was no time of viewing or burying the bodies. There was foul smell of blood and rotten bodies all over the town. The all city was indeed scary and the sound of gunfire and obscene site of dark smoke of burning buildings and vehicles was widespread. The sky and the horizon were obscured with thick dark smoke. Indeed it was an unimaginable and pathetic scene that no one could have hoped for.

It all started with ethnic violence from the northern part of the town. Banda rebels from the Bandar ethnic group vowed to overthrow King Despot after a long reign of dictatorship. The Banda vowed to fight the King and his ethnic community (the Grand) for derailing the progress of their land. The battling ethnic groups forced their male children and fully grown up men to engage in battle without considering their ability in war. The Bandar felt that they were being mistreated by the Grand. Government positions were not equally distributed as per the country’s law. Most positions in the government were occupied by the Grand ethnic group where the King belonged. King Despot concentrated in developing his community by building infrastructures and other useful resources in the Grand’s region leaving other regions underdeveloped.

Banda rebels were very powerful because they were backed by the great magician from the Southern sides called Ibagni. Ibagni was a huge giant who had supernatural powers especially when it comes to war and was also an anti-government. He would predict the end of the war before it begins and advice whoever wants to go for a battle. Ibagni also used his powers to advise rebels on the best way to attack the Grand ethnic group. He understood the terrain of the land and also some of the weaknesses of both the government and the Grand community when it comes to war. The giant advised the rebels on the strategic positions where the rebels could attack the King and his community.

Increase in intensity of the war especially after assassination of the king prompted many nations to withdraw their citizens from the country for fear of their lives. America sent for rescue team which included well-trained soldiers with superior weapons led by lieutenant Smoke who had vast experience in rescue missions and various battle fields. The soldiers planned to enter the country through a very thick forest being that it was the best path that they could use to enter the violent town .The forest was also free from violent and therefore offered a good place of setting their temporary base.

On their way to town American soldiers led by Smoke found a magically designed shrine within the forest. There were many injured people and refugees hanging around the shrine as well as an American woman with the help of few people administering first aid services to the war victims. The woman was a great physician called Softier. Softier served very many victims and provided food and shelter for several refugees. Soldiers’ mission was to start with rescuing Softier and the couple that owned the shrine. Some soldiers remained behind to protect Softier and her group as they also assisted the victims and the refugees in many ways.

The most interesting thing was that Softier refused to go to America because she felt that people would perhaps die and be distressed because they had no one to attend to them. She wanted to go back to America only when the war ended. She only requested the American government and other international communities to provide food and other necessities to the war victims. She did not care about the ethnic group or origin of her patients. She claimed that everyone belonged to God and that all people were equal before God despite their social status in the society. Softier was so much interested in the refugees’ wellbeing that she said that it would be better to fly some seriously injured victims to America so that they could receive serious medical attention.

Smoke agreed to carry with them all the seriously injured patients as a way of pleasing Softier. However, the American troops were really irritated with the act as much as they had agreed to it. Just before flying, refugees were let to relax at night by the soldiers. Softier took the relaxation time to offer medication to the patients whose health seemed deteriorating. The army put all their efforts in protecting their people and the refugees from being attacked by the Banda rebels who were trying to pursue them. The Banda rebels thought that Americans had come to help King’s men in the war. Interestingly, some of the Banda people were part of the refugees but the giant magician advised the rebels that Americans were a great threat to their success in the war. The rebels confronted the refugees camp carrying some bleeding bodies but Smoke and his people fired at them. A good number of rebels were killed. Attempts by Softier to convince Smoke not to kill the rebels did not succeed. It was actually difficult to ascertain the intention of the rebels.

The soldiers quickly moved with the refugees to where their choppers and war crafts were. Upon reaching, they turned against the refugees and ordered them to remain behind as they prepared to depart. Lieutenant Smoke ordered Softier to enter the war craft at a gun point and she desolately obeyed without even uttering a word. Just before the soldiers took off, a rebel soldier shot dead some of the refugees. This prompted Smoke to order his pilots to stop taking off. Smoke and his team fiercely responded to the attacks of the rebels. Most of the Banda soldiers were killed after a violent attack then Smoke ordered that refugees be taken to a nearby country where they could feel safe.

The fact that rebels were trailing and attacking American armies highly annoyed Smoke. One of the refugees named Peter revealed that giant Igbani was responsible for the American and refugees miseries. Smoke and his men declared war on Igbani and went to mountain where Igbani was leaving. The American soldiers got the giant who despite trying to use his magic to kill the soldiers, was shot at the forehead and died instantly. Death of Igbani was a big blow to the Banda rebels. Smoke further ambushed the rebels at night and killed most of them. The Banda numbers decreased and this really weakened their effort.

Banda rebels eventually surrendered and Peter became a King after he was chosen by the refugees and the King’s soldiers in conjunction with the few remaining rebels. Peter was considered a neutral leader because he neither came from Bandar nor the Grand ethnic groups which were the majority groups. He was regarded as the best ruler compared to King Despot. He fired all the Despot’s cabinet and came up with a new cabinet. He balanced his cabinet in a very good way by making appointments from at least every ethnic group. Peter further ensured reconciliation of the two major ethnic groups through dialogue.

The Case of Wafer Express Inc.

Name

Course

Course Instructor

Date

The Case of Wafer Express Inc.Lee Questin has lots of management challenges including time management and coordination of his subordinates. He is not able to manage his staffs and motivate them to work hard. It also seems that Lee does not understand most of the operations going on in the company. Moreover, Lee seems strains in his work because he cannot remember even Lazarus’ fifth year anniversary with the company. Lee is not sure about his abilities and responsibilities in management. There are also incomplete instructions and set of rules for manufacturing products which causes delays in operations and also raises the costs of production. Production engineers should come up with standardized way of building different products to reduce the delays and costs of operations (Buller & Randall 2-8).

In addition, the company is also faced by test failures which are regarded as serious problems and this may make customers be delayed. Product engineers should try to be as competent as possible to reduce various causes of test errors and other test related activities which consume most of their time. Part of improvements that need to be taken care of are proper documentation. Stopping interruptions especially while the product engineers are in the meeting with Lee may not be the solution to the problem because it would also mean that there would be delays during the meeting. Lee should just ensure that his engineers come up with effective layout on how to build different products. Lee should also come up with solid agenda in his meetings to ensure that important issues are raised at a particular time limit. Considering that time is an important thing for the company particularly the product engineers, he should therefore fix a particular duration for the meetings. Some of the agendas of the meeting should not involve problem affecting a single product engineer but general challenge facing all of them (Buller & Randall 2-8).

Moreover, Lee should also encourage product engineers to interact amongst themselves via various channels such as verbal or communication through mobile phones in case there is any problem in their work. There should be no time to discuss about wide company views in Lee’s meeting because these discussions may waste a lot of time. Lee should ensure that every issue raised in the meeting or amongst engineers that concerns the entire product engineering department is addressed and proper solution be found. Lee’s department does also not coordinate very well with the application engineers. Indeed there is a serious communication breakdown between application engineers and product engineers that even leads to customer dissatisfaction (Buller & Randall 2-8).

Furthermore, Lee should ensure that there is cooperation and good relationship amongst the two departments to minimize the issues arising due to communication breakdown. There is also a shaky relationship between manufacturing department and product department which derails the functions of the company. Relationship between Lee and his boss too does not seem promising. Sam is not giving Lee enough support to smoothen operations in the product engineering department. For instance he is not providing the under-staffed product department with more personnel to make work easier. Moreover Sam cannot give or mediate between Lee and Reese as a way of creating peace and motivating the workers. As much as Lee may try to be a good leader who intends to ensure that his department works well and achieves the best results as possible, he does not have good support to succeed in his duty and objectives (Buller & Randall 2-8).

OB Perspective

There is an increasing pervasiveness in job dissatisfaction and disengagement due to paradoxical organizational behaviors which has resulted into negative consequences for employers and employees. Management of job and work output is largely contributed by degree of job satisfaction and attitude towards work. Various issues concerning organization performance are never costly because they only need proper and timely implementation of actions. There are few issues that should not be taken for granted as far as performance and social co-existence within the organization is concerned. Various concepts such as motivation, leadership and communication are very vital in initiating success of a business. Employees have become very distrustful and unhappy while performing their duties thus causing organizational failures and customer dissatisfaction. This essay analyses some of the organizational behavior concepts that are necessary in Wafer Express Company (Wagner & Hollenbeck 213-225).

Effective communication skills entail good listening, non-verbal communication, team culture, consistency, clarity, and preciseness. Careful listening makes the communicator feel respected and appreciated whereas on the other hand careful listening reduces misunderstanding. A good listener shows interest to the information communicated, do not interrupt inappropriately, and is not judgmental. Lee could have listened to his juniors grievances and address them appropriately. He could have let them communicate only important information affecting them in the weekly meetings but not regarding company’s general information (Chaturvedi & Chaturvedi 27-40). However it is important to note that Lee exercises his communication skills to arrange for weekly meetings which are very essential. Sam and Reese are also not good in communication especially when it comes to providing feedback to information enquired. Whenever Lee raises issues regarding manufacturing engineering, Reese do not want to give a listening hear.

Communication greatly affects the daily operations of organizations and therefore, should be used effectively and efficiently. Better communication promotes employee morale and eventually boosts organization’s performance. Communication in Wafer Express is indeed very poor and therefore the management should ensure that effective communication is exercised for improved cooperation amongst employees. Every engineering department should have clear communication on what should be done from their leaders in order to avoid obstacles in operations. Top down communication right from the Vice president Sam Porter to the engineers via their leaders should be practiced (Chaturvedi & Chaturvedi 27-40).

Quality attention should be paid and the right effective method of communication be applied by considering cost, quantity, quality and the audience. Sam, just like Lee should effectively organize for forums where he can address employees’ grievances and understand weaknesses that may arise under his leadership. He should also be able to communicate target required for the departments to attain. Lee should also clearly communicate to his juniors about the mission and objectives of their particular departments. Communication breakdown must be avoided by using the most appropriate methods of communication where applicable. Skills and elements of communication are very vital in communication (Chaturvedi & Chaturvedi 27-40).

Team culture is another behavior concept that requires respect and team spirit among members. Members of a team should work towards a common goal with clear rules, regulations, and empowerment. Roles of every member of the team should be clear and respected by other members. Lee should ensure that all the team members work on their areas assigned properly as a way of boosting team’s performance. On the other hand, Sam Porter who is the overall head of application engineering and product engineering should arrange for a meeting that encourages team spirit amongst and within the departments. Consistency is another important aspect of communication where a leader practices honesty and open communication that allows subordinates space for discussion (Chaturvedi & Chaturvedi 27-40).

Finally, while communicating, clarity and preciseness should be encouraged. Whoever is communicating must be straight to the point and conclusive. Rules that all the engineers and other workers in the company should adhere to must be set by the seniors. Participation and engagement of everyone in decision making is very crucial in retaining and attraction of great people in a department (Wagner & Hollenbeck 213-225). If Sam could be able to mobilize all his juniors and encourage them to work hard towards achieving a common goal then there could be amazing results. Business itself is a team that requires highly motivated team spirit to catapult it to success. Inspiring employees is one thing that Howard believes in as it motivates them to share the company’s common goal (Banutu-Gomez & Rohrer 54-60).

Lee should allow for hands off approach where he encourages his juniors to work without interfering with them. He ought to encourage the team members to function independently and work out their problems by themselves. However he should avail himself for advice or assistance and offer little control over team members leaving them to tackle in their roles. Although this leadership style is recommended to a highly motivated and skilled team with an excellence of work performance, it usually leave the team struggling with little direction and motivation. It is vital to note this kind of style cannot be used on Wafer Express employees because they are not motivated (Banutu-Gomez & Rohrer 54-60).

Generally, there are skills or traits that an effective leader is required to have as explained by various theories both old and contemporary theories. Some of the main traits that appear in leaders are ambition, zeal, intelligence, self-directive, and self-confidence. At times, physical characteristics, capability, and persona may be important aspects used to summarize what a leader is. There are six distinct characters that popular effective leaders have such as honesty and integrity. In addition, drive, motivation, cognitive ability, and business knowledge are also other characteristics of leaders. These traits would definitely distinguish whether a manager will be an effective leader or not. Leaders are incredibly ambitious persons who are never afraid of taking inventiveness as well as people whom apart from willingness to lead, are especially ready to take charge (Gareth & Gill 35-45).

Furthermore, leaders usually have technical expertise in their businesses and are straightforward people who fulfill their promises. In Wafer Express, Lee does not fulfill his promise of doing documentation of the works of product engineering as he had promised Sam. This shows an element of distrust in his leadership. Leaders are individuals who do not fear taking risks and are very assertive and influential that admits mistakes and promotes trust and commitment to a vision (Wagner & Hollenbeck 213-225). Lee is not able to let his juniors committed to their duty because there are several mistakes done by his people as complained by manufacturing department. Leaders are emotionally stable, intelligent, discerning, and theoretically skilled who are able to show analytical ability, good ruling, and the capability to think strategically. Lee is unable to think strategically about challenges affecting his department especially after several foul cry from the manufacturing engineering department (Gareth & Gill 35-45).

The organization’s background and the values and associated behaviors of whoever is being led are in fact imperative while considering the leaders skills. Managers are usually needed to use these skills, which may be improved in training courses such as guidelines for decision-making, problem solving methods as well as appropriate use of power and influence. Leaders should be able to build trust to enable smooth and effective running of an organization. Lee has failed to use his power and influence to address the challenges facing his juniors. His department is constantly blamed by manufacturing engineering but he does not seem to have problem solving and effective decision making skills to stop these (Wagner & Hollenbeck 213-225).

Effectual leadership earns and keep others trust, have personal integrity, inspires trust among their followers, and ensures steadiness with what they promise their hanger-on. Nice leaders define and set a sense of mission by setting goals, priorities, and standards and ensuring the communication and implementation of the objectives set for smooth running of the organization (Gareth & Gill 35-45). However, Lee does not seem to set clear and achievable targets for his juniors since there are several issues arising in his department. Moreover, good and successful leaders acknowledge leadership as a responsibility rather than a rank by surrounding themselves with sharp and proficient people and do not blame others in case of failures. Lee is supposed to take responsibility in his department and set goals for his juniors. He should ensure that he addresses all the problems facing product engineering to reduce the blame and test failures (Gareth & Gill 35-45).

Lee need to engage in participative management style by involving subordinates in decision-making process through consulting group members. This is significant in promoting engineers ownership for the decisions. Nevertheless Lee should not be overtaken by his juniors’ participation by losing sight of the fact that he bears all the crucial responsibility of leadership (Wagner & Hollenbeck 213-225). A good leader supports participation and delegation intelligently and values group discussion and contribution from team members by maximizing their strong points in order to obtain best performance from the group. Although participative managers motivates and empowers the subordinates, there may be assumption that he is unsure of himself and that all issues are solved in the group discussions (Gareth & Gill 35-45).

Additionally, leaders may use motivation to reach goals by either positive or negative approach. Positive approach includes use of praise, recognition and rewards while in negative style comprises of punishment, penalties, potential job loss, threats, suspension and remands (Wagner & Hollenbeck 213-225). Task and employee orientation is the manager’s approach on the best way to get work done by using better methods, controlling the work surrounding, assigning work, and monitoring performance. Attitudes and behaviors of workers significantly affect the management and operations of firms regardless of the management style used.

Interview Response

Julie responded to the first question by admitting that she has had several occasions where her subordinates are just too reluctant to meet the deadline set. In many occasions there may be delays of supply of solar to her company’s customers due to failure to manufacture the products on time. She would talk to her team to work overtime and even over the weekend just to ensure the customer is satisfied and the company does not loss her customers. Because of additional incentives, most employees would always turn up.

On the other hand, James has also had numerous instances but the one he says that remains important to him was when he advised his subordinates to exercise positive attitude and corporate amongst themselves. There was division amongst the subordinates as the male ones felt that James favored two female employees compared to them. Male employees refused to understand until they were transferred to other retail shops because their performance went down. Additionally, Terry stopped two months allowance for her employees due to poor performance of the business. Employees threatened to sue her and four of them resigned.

Both the people I interviewed admitted that dealing with human being is not an easy task and that it requires high degree of caution. However Terry feels that as a boss she must use all the authority under her to ensure that the business does not fail.

Regarding challenges faced within the teams they work with, they all acknowledged that there have been many instances they disagreed with their groups. Julie recalled frequent cases where she has to push her team to work on solar panels and meet deadlines. She thought male employees did not like her perhaps because of her sex or her low profile attitude. Nevertheless, James and Terry who admitted challenges with their respective teams did not think that they were personally hated.

Interestingly, all the interviewees confessed that working as a group is a good thing. Though James thought that team or group politics may greatly affect teamwork and therefore individuality may be preferable. He further added that a focused individual is better than a million members of a discouraged and politicized team. Also, Terry shared almost similar thought that as much as she loves teamwork, at times a single individual may really bring it down. Three of them said that they normally talk to all of them in weekly meetings to clear air on any important issues raised. Julie carefully tries to listen to challenges affecting them and she admits that there have been marvelous results of late.

Julie feels that she is a transformational leader who has achieved great success with her team. She postulates that the team believes in her and she too believes in her team from the way she interacts with them. On the other hand, Terry feels that being that she is a quick decision maker and loves her team to work efficiently; she must be an autocratic leader. However, she admits that she has faced few challenges with her employees regarding this. They feel that she is pushing them to work. Interestingly, she says that success of her retail shop is attributed to her leadership style. Furthermore, James thinks that because his team do routine work, he does not like interfering with them. He says his leadership style must be Laissez-Faire and that the style has really improved performance of his team.

Indeed every leader is faced by numerous challenges in their teams but what makes a difference is the type of a leader or manager someone is. Dealing with subordinates is not an easy task unless they feel motivated. Both the interview and the Wafer Company case have revealed a lot about challenges facing leaders. The case and the interviews are very similar in numerous instances. Leadership indeed is all about motivating the employees and showing them visionary direction to follow.

Works Cited

Banutu-Gomez, Michael, and Rohrer, William. “Teams in Organization.” The Business Review, Cambridge 18.1 (2011): 54-60. ProQuest. Web. 9 Aug. 2013.

Buller, Paul F, and Randall S. Schuler. Managing Organizations and People: Cases in Management, Organizational Behavior and Human Resource Management. Mason (Ohio: South-Western, 2006. Print.

Chaturvedi, and Mukesh Chaturvedi. Business Communication: Concepts, Cases and Applications. Delhi: Dorling Kindersley, 2011. Print.

Gareth, Edwards and Gill, Roger. “Transformational Leadership Across Hierarchical Levels in UK Manufacturing Organizations.” Leadership & Organization Development Journal 33.1 (2012): 25-50. ProQuest. Web. 9 Aug. 2013.

Wagner, John A, and Hollenbeck, John. Organizational Behavior: Securing Competitive Advantage. New York, NY [u.a.: Routledge, 2010. Print. (Wagner & Hollenbeck 213-225)

Appendix

Questions Raised

Is there job experience in which you had to talk and tell people what you felt and what is right for the company? How was their reaction

Is there any situation where you felt that you should be more cautious while handling company operations especially while dealing with subordinates?

Have you ever had a challenge while dealing with a team in which you are the leader and team members do not like you?

People either love working as a group or an individual. Which one do you prefer? How do you make your style effective?

What is your leadership style? What have you achieved with your leadership style?

Interviewees

Name: Julie Gircys

Phone number: 416 712 1488

Email: juliegircys@sympatico.com

Companies of interviewees: Mondial Energy and Beach Solar

Number of People Managed by Interviewee: 10

Venue of the Interview: Office

Name: Peter James

Phone number: 760 9871234

Email: Peterjames@starbuck.com

Company of interviewee: Starbuck

Number of People Managed by Interviewee: 5

Venue of the Interview: Restaurant

Name: Lucy Terry

Phone Number: 760 988 5432

Email: Terril@gmail.comCompany of Interviewee: A small retail shop

Number of People Managed: 8

Venue of the Interview: Within the retail shop

Time and Miro, An image showing a strong use of motion

Name

Course

Course Instructor

Date

Time and MiroAn image showing a strong use of motion

Tittle: People in a boat

Artist: Robert Blackburn

Medium: Drawing

Timeless image

Tittle: Shinto/Buddhist votive Plaque with image of Jizo (Ksitigarbha Bodhisattva0 Attached to a Circular Mirror

Artist:

Medium: Plaque

An image that uses circular (cyclical or non-linear) time

Tittle: astral Snake

Artist: Anselm Kiefer

Medium: Painting

(The Metropolitan Museum of Art Web).Miro has actually achieved his intended goal since there are several incidences of repetition, rhythm and action that tie the work together. He has managed to control my eyes by making them move along various paths shapes and colors. He has related various elements together such as color that makes the eyes move around the whole paint without concentrating on a particular point. The intensity of the color used is almost uniform throughout the whole work. There are also large spaces between lines which are really creating harmony. There are fewer figures and few lines on the artwork that depict statutory movement and harmony on the image.

Works Cited

The Metropolitan Museum of Art, 2013. Web. 11 September, 2013. <http://www.metmuseum.org/search-results?ft=Printmaking>.

Variation in Asset Prices and Macroeconomic Performance

Name

Course

Course instructor

Date

Variation in Asset Prices and Macroeconomic Performance

It is worth noting that disproportionate credit expansion, uncontrolled liquidity to financial institutions as well as lessening of lending principles may result into financial imbalances due to over investment and asset price fluctuation. Asset price growth may be triggered by conducive monetary stability that may prompt investors to take risk or because of low inflation and a sound inflationary policy of the central banks (Case, Quigley & Shiller 2-5). It is undeniable that variation in asset prices may lead to either financial stability or financial distress.

If economic boom is characterized with unstable developments in credit market especially when the asset prices rises, then there is probable risk that the asset prices may exceed economic expectations thus turning out to be costly to the real economy. Increase in asset prices may lead to an increase in household wealth, boost collateral for mortgages and in turn decrease the need for precautionary saving the rising asset prices may have a huge impact on consumption and enhance the businesses expenditure due to available financing (Case, Quigley & Shiller 2-5). However, high asset prices may contribute to the financial build up as well as real imbalances, which is very risky for macroeconomic stability making it important to monitor the assets.

Classical theory of asset prices equals the present value of the stream of income, which individuals expect the asset to pay. According to Case, Quigley & Shiller melodramatic surge in stock values in the latest past has prompted introduction of new policies (2-6). Inflation of the prices of stock enhanced pressure on consumption spending of households. Housing wealth has a significant effect on both the individuals and financial institutions thus relating to the fact that changes in national wealth is linked with changes in national consumption. Looking at the savings hypothesis, the consumers extrapolate wealth over the anticipated wealth as the marginal propensity to consume remains small though slightly higher than the real interest rate.

Several factors may affect consumption based on the form of wealth such as the increases of measured wealth, which is deemed temporal, and uncertain. Moreover, the household may hold appreciated assets pending death after being empowered by the bequest motive or even view the accumulation of certain form of wealth as an end in and of itself. It is also likely that an individual may not be able to ascertain the amount of wealth they possess or perhaps segregate numerous forms of wealth into different mental accounts by setting some wealth for current and future use.

A bubble would always take place when the price of an asset rises due to individual expectations thus raising their demand. It is until the prices continue to rise beyond people’s expectation thus prompting doubt regarding future increases that the demand falls and people rush to dispose of their holdings. For instance, the average price of houses in the U.S experienced an increase of 71% from 2002 to mid-2006 making a number of people to buy second homes for fear of future rise in prices that will lead to higher profits (Case, Quigley & Shiller 2-5). Loans and mortgages were powered the housing demand and prices but later the bubble collapsed when house prices fell to 33%. It is significant to note that the stock prices are largely affected by bubbles that affected the companies’ earnings. The decline in the house prices saw decline stock price during the bubbles because the crisis reduced the financial firm’s expected earnings and further increased the risk premiums.

He argues that the balance sheet recession is linked with an initial AD shock, which included the housing bubble burst in Japan in 1992, and the one happened in U.S in 2007. Koo claims that the housing bubble prompted an eventual decline in house prices which turns out to cause private sector deleveraging since both the private and corporate begin to save and none is neither borrowing nor spending (YouTube). . Koo feels that the government intervention could offer sustainable growth path yet the liquidity resulted into cumulative deficit between 1190 and 2005 hence sounding as a self-defeating negative spiral of ineffective government stimuli (YouTube). Although Koo’s proposal helped Japanese GDP to plummet, it is a failed approach because it turned the financial institutions to be risk-averse making financial markets to perform poorly.

Works Cited

Case, Karl, Quigley, John and Shiller, Robert. Comparing Wealth Effects:

The Stock Market versus the Housing Market. National Bureau of Economic Research, 2001. Web. 20 Nov. 2013.

Koo, Richard. “Balance sheet recession (INET, 2013)” ari100teles video clip. YouTube. YouTube, 18 Jul. 2013. Web. 11 Nov. 2013.

Part 1 Case Study

Name

Course

Institution

Part 1: Case Study

Identify

Potential problems in the manufacturing process

Both the small, medium and large engines would be skewed to having poor performances as listed.

There are also mechanisms that have led to compact, large, mid-size, small, sporty and vans. Passengers are observed to have issues with the vehicles owing to how they have been made.

There are also various vehicles having issues when it comes to the MPG.

The fuel tank is also observed to be having issues with the developments. This is in relation to large, medium and small tanks.

Investigate these high and low measurements

Manufacturer Origin Model Type Passengers Price

Honda non-US Civic Small 4 12.1

Geo non-US Metro Small 4 8.4

Suzuki non-US Swift Small 4 8.6

The price of Honda more so, the small one is affordable.

Highest 10% and the lowest 10% of these measurement

Q1 1.2175

Q4 2.285

Better ways to select the outlier values

When the interquartile range is given a multiplier effect of 1.5. Then we are able to ascertain the outlier values that are present.

Subtraction of 1.5 interquartile range from the 1st quarter would result in less values deemed as outliers. Hence, the numbers would be sorted from high to low. This can be visualized through a box plot.

Fences can be used to introduce interquartile ranges.

Statistical procedures can be used to come up with the skewed values.

Reasoning and answers for distributions that are normal or skewed

Their ought to be outliers in a system of which would result in the framework having a normal curve. The values cannot be the same at any given point. Thus, proving that they are correct and have a statistical element.

Part 2: Box Plot

Population size: 92

Median: 17.6

Minimum: 7.4

Maximum: 47.9

First quartile: 12.125

Third quartile: 23.15

Interquartile Range: 11.025

Outliers: 47.9 40.1

Weight data from the Cars data set located in the Group Project assignment

Values for the 5-number summary

Upper and lower fences

Discuss the shape of the data outliers in your comments.

References