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Soft drink competitors usually have comparable products

Name

Institution

Soft drink competitors usually have comparable products

Introduction

Soft drink competitors usually have comparable products. Customers encompass different discernments relying upon on the quality of the soft drink previously presented. It is essential to compete with general brands. This paper attempts to introduce and market the Fresha soft drink as a brand identity as a new product. It commences with an elegant package design followed by promotions to exemplify exclusive approaches that instigate consumer knowledge by the employment of in-house creative marketers. The marketing of Fresha endeavors in the development of prevailing advert campaigns to bring in and uphold the brand identity. An extensive range of coordinated media hype and advertisements will be utilized in effect and competently in highly imaginative fashions to increase Fresha’s awareness. Marketing of Fresha will be subject to increase positive consumer awareness, resulting in the product’s success and establishing unparalleled growth and proceeds. In the event of accomplishment and thriving of Fresha soft drinks, other product brands will be developed, as well as, launched.

Description of Fresha

As soft drinks are manufactured, consumers develop into being more conscious of their food ingestion. Consumer apprehensions regarding the quantity of sugar or calories, or simulated ingredients and constituents in their drinks continue to mount. Consequently, healthy soft beverages like Fresha made from fruit and vegetable juice will gain as well as benefit more awareness from consumers. Indeed, organic juices recorded the uppermost overall volume sales increase in soft drinks last year because of a healthy reflection to consumers (Jain, 2011). On the contrary, carbonates growth, even though still recording an optimistic growth rate, established symptoms of reducing, seeing that consumers started to shift to healthier alternatives. The overriding idea is to discover the most recent marketing trends and expose sources of potential market development. The marketing of Fresha will be centered in finding unknown opportunities in nearly all existing research data obtainable. The product’s marketing also comprehends competitive hazards with comprehensive market study, as well as, planning a corporate approach through expert qualitative study and escalation projections.

Unmet Customer Need

The promotion is in reaction to a theatrical drop in proceeds as consumers shift as an alternative to tap water. Even though, bottled water exceeding billion liters were consumed globally in the preceding year sales and earnings have reduced by approximately nine per cent over the past twenty four months. There is a requirement and need to address the unmet customer need for organic juices. This will undo the reduction in sales and dismiss some of the depressing promotion bottled organic juices have engrossed over the preceding years (Kapferer, 2008). Bottled organic juices have been blamed for escalating pollution through the plastic bottles. It has also been subjected for being a needless lavishness at a period when numerous individuals all over the globe do not have access to sparkling running water. Promotions have been initiated to try to promote diners in eating places to request tap in place of bottled water. Therefore, juices bottled in recyclable materials would act as a replacement to this pressing issue.

With the pressing issues encompassing tap water globally, organic juices will rise to the occasion in solving the quest and thirst problems. Organic soft drinks in most locales of the planet have encountered extremely extreme competitive surroundings. International businesses and firms have long conquered sales regarding juices and drinks (Tremblay, 2007). In spite of all the hardships, Fresha organic soft drink will productively sustain its principal position in retail volume, as well as, price variation in the market. The drink’s promotion possesses a reflective perception of organic soft drinks, as well as, consumer behavior. In addition, inventive and forceful marketing activities as well will assist the company secure its consumer position.

Target Market Description

It is believed that Fresha organic soft drink is projected more at teenagers and young adults, as opposed to any other age cluster. It will be intended for the male along with female, young adulthood since it is perceived as a refreshing hip-hop beverage. Its promotion will mainly be promoted through media programs, which are predominantly watched by adolescents and young adults rather than the elderly. It will be vended everywhere so that every person can purchase it. The elderly can also consume the drink since it is organic, but the packaging and branding will target the youth to be specific in nature. Its price will be set at a sensible price so that teenagers can pay for it with their recreational jobs as well as their pocket cash. It could also be suitable for the elderly since it tackles their concern for being overweight, sleep as well as their maintenance to their healthy, as well as, balanced existence. The covering of Fresha will be related to mutually girls and boys, illustrating that it will be appealing for both genders. Being organic would steer families to purchase the organic juices since organic beverages are fit for consumption. The development of well built customer devotion will bring in improved profits and sales. It representation in numerous, diverse languages as well as styles will be appealing to all the planet’s civilizations. Target positioning is concerned about the manner a brand or business is located, or perceived in the conscious of the intended group of consumers (Smith, 2007). Developments of perceptual maps will assist in strategizing positioning, as well as, repositioning. A perceptual plot is a drawing which designs different positioning along with repositioning.

Description of Existing Alternatives and Substitutes

The only alternatives or rather substitutes that exist are the carbonated drinks. These have been in the market for extensive periods. Primarily, people have a liking for carbonate drinks since they are refreshing, but they pose to have numerous side effects. A person will not fancy drinking too much carbonated beverages due to the unhealthy consequences that will accumulate over time. The elderly persons will not want to consume so much of these drinks owing to the fact they encompass too many hazards than benefits to them. The Fresha soft drink is better than its counterparts since it is made from organic materials. Its sweetness will be synchronized as well as the sugar will be somewhat moderated to accommodate all the age clusters. There are no presentable alternatives for Fresha since many other products are manufactured and produced through synthetic methods. The bottled water business will be an alternative in some way even though it does not pose as a threat since it lacks the sugary element that the youth like. Fresha’s packaging will be more appealing to the Youth as compared to its alternatives and substitutes.

Marketing plan

The four Ps

This brand new product, is aimed to be presented to consumers of the modern era, who are focused in consuming food that are health and diet balanced, as they intend to thwart ailments such as obesity and diabetes, in their lives. This drink is intended to hit the market and succeed because it is to be sold at a price that customers will affords, and it has been established at a time when consumers are concentrating on their health; thus giving it an edge over the dominant and widely established beverages companies.

Product

In marketing, a product entails anything which can be given to consumers, and assist in satisfying their needs and wants. The Fresha soft drink comprises basic ingredients that can be traced in most similar drinks such as organic water, organic fruits, sugar colorings, phosphoric acid, citric acid and natural flavors among other ingredients (Klopper, 2006). The drink is caffeine free and is aimed to be a health drink, considering that current populations are concerned with living and consuming healthy foods, rather than sugary and tasty drinks, such as those from its main competitors, who will be coca-cola and Pepsi among other soft beverages companies. This Fresha soft drink is an innovation that is aimed to compete, and be accepted in the market, because of its organic nature, which is different from the other competitors’ products.

Price

Price is an integral variable in the marketing mix that is inte4gral in the marketing plan of Fresha. When the suitable price and the precise pricing strategy are determined it becomes paramount to a marketing process. The price of this product will be aimed to attract customers, and it will be founded on the structure of competition. Although other factors such as the cost of production are considered in the pricing of Fresha, the competition from other competitors and issues such as marketing and advertising will determine the pricing of this product. This will also entail that the company can lower its prices, to attract more consumers. Since competition is stiff the company by lowering prices risks incurring losses, but this will enable it achieve a consumer base that is loyal to its product.

Place

Since Fresha is a new product, its location will be located in the US, focusing on the American market, for its main consumers. The company is has not grown enough to compete with the multinationals such as coca cola, but it can compete aggressively with them in the local US market. Since the beverage is a health drink, it can easily find itself to many American’s hearts, as it will appeal to people across generations, who are concerned with consuming healthy foods (Chisholm-Burns, Vaillancourt & Shepherd, 2011). However, the company intends to go international, by merging with other smaller companies, in other nations, to boost its market reach.

Promotion

This will involve personal selling, sales promotion, advertising and publicity and public relations. These are critical for Fresha’s promotional plan. This indicates the level of attention that Fresha will accord each of the mentioned subcategories as well as specify the budget of cash to apply for each (Klopper, 2006). Fresha’s promotion is intended to en sure that the product is accepted in the market, enhance its sales, facilitate its image creation and position the brand in the soft drinks market. This brand will be promoted as a health drinks that add value and diet to its consumers. The company will also embark in advertising the product through the media such as TV ads and social media to enhance its reach among populations. Furthermore, the brand will be promoted by using brand ambassadors who will include famous celebrities both from the music and sports arena with immense influence among the population to facilitate its acceptance in the market.

P.E.S.T. Analysis

Political Influences

The production distribution and application of Fresha product is entailed to different federal laws including the food, drug and cosmetic Act and occupational safety and Health Act among others. Furthermore, the company and its product are subject to the state, local and overseas environmental decrees and regulations. The company has to comply with the established environmental and healthy laws, to prevent any environmental litigation, concerning its products.

Economic Influences

The company is affected by the harvest of the raw materials that it uses to produce the Fresha soft drink, such as orange, vegetables, potatoes and grapefruits among others. Fuel is also critical in the economic influences as the company depended of trucks and other means of transport to transport such raw materials to the manufacturing plant (Mukherjee, & Kachwala, 2009). Therefore, the fuel prices changes and fluctuations also affect the economic aspect of the soft drink. By taking into consideration the economical influences, this will allow Fresha to be prepared for economical turndowns; hence ensuring that it does not register a lot of losses.

Social Cultural Influences

The drink is a non alcoholic beverage, and it always strives to maintain this image, before the public and its consumers. The beverage is subject to people’s changing lifestyles because it has based its advertising and promoting campaigns in a specified form of people with a certain lifestyle (Rajagopal, 2000). Therefore, the company has to pay significant attention to the changing lifestyles. The Fresha drinkers are intensely defined to as those people of all ages who are aiming to consume drinks that are healthy oriented.

Technological Influences

The company is a subject to novel techniques of manufacturing for its soft drink. Therefore, the company has to concentrate on new distribution methods as well as be attentive to the developed competence, so as they will be aware of new products (Rajagopal, 2000). This will ensure that the company attains competitive advantage within the market. Furthermore, with the emerging trends, which are technologically oriented such as most businesses being carried out online, and through social media, Fresha will make certain that it operates within these new technologies, to remain competitive and relevant in the market.

Conclusion

Starting a new business such as selling organic soft drinks in a highly competitive environment would be challenging. Therefore, for an incoming company to be successful in such environment, it should have a strong business plan and strategy that will enable it to penetrate such competitive market and ensure that they continue to grow. This will entail that the company focuses on marketing its brand, and promoting its product to ensure that it increases its sales and gains more consumers. Furthermore, with a certain target audience in mind the company will ensure the company finds it is easier to mingle in the market and promote its products. Fresha has embarked in making a healthy oriented drink its priority, as most people are watching what they consume, to prevent food related diseases. This gives it an advantage in the marketplace to that is full of competitors. Therefore, considering the factors that a new product has to undergo to penetrate in the market, Fresha soft drink is well positioned to be successful in the soft drink industry.

References

Chisholm-Burns, M. A., Vaillancourt, A. M., & Shepherd, M. (2011). Pharmacy Management,

Leadership, Marketing, and Finance. Sudbury, Mass: Jones and Bartlett Publishers.

Jain, S. C. (2011). Handbook of Research in International Marketing: Ed. by Subhash C. Jain

and David Griffin. Cheltenham: Edward Elgar.

Kapferer, J.-N. (2008). The New Strategic Brand Management: Creating and Sustaining Brand

Equity Long Term. London [u.a.: Kogan Page.

Klopper, H. B. (2006). Marketing: Fresh Perspectives. Cape Town: Pearson/Prentice Hall South

Africa.

Mukherjee, P. N., & Kachwala, T. T. (2009). Operations Management and Productivity

Techniques. New Delhi: PHI Learning.

Rajagopal,. (2000). Marketing: Concepts and Cases. New Delhi: New Age International

Publishers.

Smith, A. F. (2007). The Oxford Companion to American Food and Drink. New York: Oxford

University Press.

Tremblay, V. J. (2007). Industry and Firm Studies. Armonk, NY [u.a.: Sharpe.

Credit Unions and Insurance Companies

Comparison

1. Credit Unions and Insurance Companies

Structures and Functions

Credit unions and insurance companies have financial structures that render autonomy to the management of their own affairs, usually under clear legislative regulation. Special insurance companies known as mutuals operate in a version similar to a credit union which shows how similar the two financial institutions might be. Credit unions Due to the nature of their operation and type, management units and version are different between the two entities. Credit unions are managed by a regulatory board and committees while insurance companies are managed by managerial offices and a board of directors.

While credit unions are regulated by cooperatives regulations, insurance companies are regulated by incorporated entities regulations. By seeking financial assistance from a credit union, individual entities become owners of the financial institution which is not the case with insurance companies which are not owned through seeking insurance cover or any other financial assistance. Interest rates at credit unions are very attractive since they aim at initiating development among members. On the other hand, insurance companies charge high interests since they are profit oriented.

Both institutions are established to offer financial security in a certain way to their clients. In a similar end result, both the credit unions and insurance companies offer a clear savings channel that is not as clear in many other financial institutions. The operation of both of these financial institutions seems to be providing a secure means to invest since the risks involved are considerably shielded from several risk types. In contrast, on one hand, credit unions ought to spur development among the members through offering of cheap financial services. On the other hand, financial services offered by insurance companies are geared towards maximization of profits thorough delivery of a range of policies and other financial services.2. Open-end mutual funds, closed-end mutual funds, and exchange traded funds

Salient Characteristics and Features

Management is vested in the hands of a board of directors in all of the above mentioned financial institutions, with the sole responsibility of protecting the shareholders. In distinguishing open end mutual funds from the rest, it is clear that the fund operates on a self liquidating manner, in that it is always willing and able to purchase and sell investors’ shares any day of operation. On the contrary, closed end mutual funds are not bound by the provision of liquidity, a factor attributed to have caused a serious performance slump at the helm of Crush of 1929 (Haslem 2009, p19). Open end mutual funds allow redemption of the shares by the fund. On the contrary, exchange traded fund is a mutual fund portfolio through which an acceptance to trade the shares in a securities exchange program exists. In a similar way, exchange traded funds as well as closed end mutual funds therefore enable the fund investors to exchange and trade the shares among themselves.

According to Haslem (2009) the regulation of the open end funds is a very challenging order to match for several institutions since one of them is the provision of performance disclosure. Such disclosures are expected to solve the collapse risk observed during the Crush of 1929 and increase investor confidence. As a result, investors prefer open end mutual funds to closed end mutual funds to this day due to the disclosure protection. Open end mutual funds are also one of the most diversified investment mutuals due to a wide asset and securities coverage. For this reason, there more investment avenues in an open end mutual fund than several other funds. Investors that deal in exchange traded funds are more likely to use the features of the fund that allows them to hedge a certain financial position. This is due to the diversified nature of the fund such that its shares can be shorted to cover certain investment considerations.

3. Common stocks, preferred stocks, bonds, and convertible bonds Salient Characteristics and Features

Common stocks present a bundle of rights to a holding investor which include dividends, liquidity rights, consideration rights upon fundamental transactions, voting and owning assets proportion upon liquidation. Preferred stocks have all of common stocks rights and an additional advantage of preferential treatment during the effecting of the rights. For instance, dividend payments are preferentially made in consideration of the rights possessed by preferential stocks holders. Extra rights include inspection and information, blocking rights and pro rata participation rights during sales among several other special rights. Bonds holders are creditors to an institution that has offered to issue bonds as a financing mode. This is a difference from stock holders who are actually partial owners of the issuing corporation.

Alternatively, the bond relationship is a temporal arrangement that automatically expires at the end of the stipulated contractual period. The returns obtained from the bond investment are known in advance and tend to be fixed unlike that of stocks which considerably varies with the actual performance of the corporation. Convertible bonds are special type of bonds which present the owner with a rare opportunity to transform them into shares. As such, the bundle of rights possessed by shareholders becomes effective upon the conversion. It can be said to possess both debt and equity characteristics that bonds and stocks separately possess.

While stocks are translated as units of ownership of the corporation, bonds are a measure of debt that the corporation owes to holders who effectively become creditors. In the application of the general interpretation of the rights of these two groups of investors, there is a feature of corporate liability on one while the other does not possess the feature. In this sense, the stockholder is more of the owner who should take care of liabilities such as those claimed by the bondholder who is a creditor. It therefore means that these two types of investors are on the exact opposite sides of the ownership rights. A hybrid sense of corporate rights emerges from the merging of the rights of both a creditor and a shareholder. This is the rare investment opportunity presented by convertible bonds.

4. NASDAQ market, NYSE, and the stock market of the nation that was the focus of your group project

Strengths and weaknesses

NASDAQ market posses on of the most unique strength that modern securities markets can have, the electronic foundation. In a world whose operation is almost synonymous with incessant innovation particularly fueled by the information technology regime, it positions itself as a rare type of a market. Electronic security trading has a lot of insights to borrow from NASDAQ market, having been able to amass the largest market volume that is unmatched by any other market. On a market capitalization yardstick, NASDAQ is only second to the world largest stock market which demonstrates how powerful of a stock market that it is.

Similarly, the NYSE is a leading world stock and securities market second to none in its volume and market capitalization. Its electronic base got a milestone boost when it merged with Euronext, a leading electronic stock market in 2007. Perhaps, one of its strengths is hidden in the fact that it incorporates a huge electronic operation line with the ordinary stock market operation. Coincidentally, both systems of stock markets are in New York, home to the world business coordination center. The American system of stock trading is central to many world operations. New York City is home to numerous world related institutions and world economic watch derives its vibrancy from the city.

Among the most potent financial weaknesses that NASDAQ and NYSE posses include limited operating margin, low return on equity and a vey high reliance on the US security market (GlobalData, 2010). From these common weaknesses, the scenario is also made worse by the fact that both markets rely on the US dollar as the debt reference currency, which exposes their scope to the performance of the dollar. The US stock market is vulnerable to various risks such as the Wall Street risk analysis which is usually blamed for the recent economic slump.

References

GlobalData (2010) “NYSE Euronext (NYX- Financial and Strategic SWOT Analysis,” Retrieved from: HYPERLINK “https://www.researchandmarkets.com/reportinfo.asp?report_id=1495220&t=t&cat_id” https://www.researchandmarkets.com/reportinfo.asp?report_id=1495220&t=t&cat_id=

Haslem, J. A. (2009) Mutual funds: portfolio structures, analysis, management and stewardship. Hoboken, NJ: John Wiley and Sons

Kalamazoo Institute of Arts Tour

Name

Institution

Course

Professor

Date of Submission

Kalamazoo Institute of Arts Tour

The trip to Kalamazoo Institute of Arts was one of a kind that will remain memorable, considering that it was my first time to be at the fantastic place. The visit significantly changed my perspective toward the artwork as it was to a further more extent to what was in my mind. The quality and variety were astonishing as well as the historical context that the artwork portrayed and the information passed to the world. Kalamazoo Institute of Arts is a fantastic place to be that gives a new experience as well as beautiful art that attract person’s site and significantly stimulates the willingness to know more about the traditional cultural ways.

There at Kalamazoo Institute of Arts, the first artwork that caught my attention was egg tempera on linen mounted on board that contained a man looking at the sunshine leaning on bricks. “Looking at the Sunshine” by John Stockton De Martelly is a lithograph artwork that was created in 1938. John Stockton De Martelly was a famous lithographer born in Philadelphia in the year 1903 and studied at the Pennsylvania Academy of Fine Arts as well as in the Royal College of Art in London w, here he gained his skills in the artwork. John De Martelly offered back his skills to the society through his career as a teacher at the Kansas City Art Institute where he taught printmaking. The same students he taught in Kansas City studied printing art from the famous Thomas Hart Benton at the same institute.

Securing the same career with Hart Benton made the two close friend and Stockton De Martelly get influenced by his colleague’s regionalist style. Stockton De Martelly was promoted to be the head of the painting department after the act of institution’s Governor of boards firing Hart Benton who was the former holder of the position. However, Stockton De Martelly was not pleased by the board of governors’ action leading to his quit from the institution and later secured a job as a printmaking tutor at the Michigan State University (Berardi et al. page 7). During his early 1950s, Stockton De Martelly has adopted abstractionist life after abandoning the regionalistic subject that he had learned from Hart Benton. Stockton De Martelly produced lots of lithographs that are influential, and they were enormously being marketed through the Associated American Artists Galleries based in New York.

In “Looking at the Sunshine” Stockton De Martelly make use of contrast to portray the difference between the man’s body uncovered a body, the light blue clothing, and bright shoes. He had merely painted the image using appropriate contrast that makes it attracting and decorative. Stockton De Martelly significantly applies a variety of primary and secondary colors to paint the picture in dull ways to signify the advancement of industry during the era when the work was done as well as satisfying the cultural perspective. The building at the front side has been painted by use of analogous color to make it distinct from other objects, and its traditional shape postulates the decade when the painting was done. Stockton De Martelly significantly use opposite colors on the sky enhancing the subject’s focalization (Weed et al. page 23).

Initially, the reaction towards the canvas was conventional thinking that it was apparent to come across people’s painting around their homesteads and such. However, the perspective changed after a clear understanding of the historical context portrayed by the Stockton De Martelly’s art regarding the traditional customs and cultural beliefs. It was surprising to realize the advancement in the modern way of living compared to the conventional techniques regarding clothing as well as the building structures. From the class work, I would distinguish the Stockton De Martelly’s work with “Mona Lisa” by Leonardo da Vinci. Both of these canvas to a profound extent signifies traditional customs as well as the historical context of the affected communities. Considering the use primary and secondary colors makes the subjects parts distinct and decorative.

“Dog on a Balcony, Paris”

The other artwork of interest that attracted my attention while at Kalamazoo Institute of Arts was the canvas of “Dog on a Balcony, Paris” by Joseph Stella ca. 1929. The image is part of Joseph Stella’s collection work who was an American painter born in 1877 in Muro Lucano, Italy and later died in 1946 in Queens, NY. In his life, Joseph Stella was popularly known as an Italian Futurism, Early American Modernism as well as Precisionism. After his completion of studies in New York, Joseph Stella abandoned his intentions to be a doctor in the profession and shifted to the artwork. During his schooling, he had undertaken a course on antiques at the Art Students League which gave him an inspiration for transferring to the New York School of Art. In 1905, later after completion of his studies, he worked as a magazine illustrator who was mainly based on realist drawing. Stella’s representations of New York’s cityscapes and built-up architecture made him turn out to be a major figure in the Precisionist movement. He is best known for his artwork depicting Coney Island and the Brooklyn Bridge among other urban scenes (Artwork et al. page 12). “Dog on a Balcony, Paris” significantly the precisionist perspective with decorative scrollwork on the balcony railing and on further distances a focus that enables the viewer to have an intrusion of the natural world which is represented by the artist in the form of a dog.

Joseph Stella significantly makes use of linear perspective that is created by the edges of the metal grids on the balcony to differentiate it with the adjacent building. The complementary color used for painting the sky makes it distinct and as well as being decorative to the canvas. Stella in this artwork makes use of portrait overview that appropriately fits it well. Furthermore, similar colors are used to paint the buildings giving them a clear focus and making them different from other objects such as the metallic grids. The primary color used in decorating the dog makes it distinct and represents the simplicity of nature.

On viewing the Joseph Stella’s “Dog on a Balcony, Paris” artwork, it was surprising as I seen it as an awkward deed to develop an art with such subjects. On further elaboration, I got to understand that it was symbolic of world’s nature where the author uses a dog. The work is interesting as the dog signifies simplicity and appreciation of nature. I would compare Stella’s work with the “American Gothic” by Grant Wood considering that both works are in portrait and the subjects are figured halfway. Also, both the buildings in both the artworks are painted in similar colors enhancing contrast among other themes found in the canvas.

Kalamazoo Institute of Arts is an excellent place to be where one cannot hesitate to have a visit again and again. The interesting artworks by different artists worldwide make the location fantastic and the experience memorable. I was accompanied by fellow students to Kalamazoo Institute of Arts, and they also had an enjoyable experience as they moved from one artwork to another selecting the best to write about. Furthermore, I would like to have a visit to other famous museums discussed in the class to see more as a way of appreciating nature, appreciating the work of the favorite legends and gaining more skills as well as experience in the artwork.

References

Artwork, Studied, and Marcel Duchamp. “THE AMERICAN CENTURY: HOW AMERICAN ART CLAIMED AND DEFINED MODERNITY.”

Berardi, Marianne, and Henry Adams. Under the Influence: The Students of Thomas Hart Benton. Albrecht Art Museum, 1993.

Weed, Stanley E., ed. Art in an Age of Transition: Northern European Prints from the Collection of the Kalamazoo Institute of Arts. Alfred Berkowitz Gallery/Published by the Regents of the University of Michigan-Dearborn, 2017.

Credit Suisse Business Plan

Your Name Credit officer

Credit Suisse Business Plan

One Cabot Square

London, E14 4QJ

United Kingdom

]

ABN: [26 144 592 183]

ACN: [144 592 183]

[Credit Suisse]

Business Plan

Prepared: February 27, 2013

Table of Contents

TOC o “1-3” h z t “Plan 2,2” HYPERLINK l “_Toc302402271” Business Plan Summary PAGEREF _Toc302402271 h 3

HYPERLINK l “_Toc302402272” The Business PAGEREF _Toc302402272 h 3

HYPERLINK l “_Toc302402273” The Market PAGEREF _Toc302402273 h 3

HYPERLINK l “_Toc302402274” The Future PAGEREF _Toc302402274 h 3

HYPERLINK l “_Toc302402275” The Finances PAGEREF _Toc302402275 h 3

HYPERLINK l “_Toc302402276” The Business PAGEREF _Toc302402276 h 4

HYPERLINK l “_Toc302402277” Business details PAGEREF _Toc302402277 h 4

HYPERLINK l “_Toc302402278” Registration details PAGEREF _Toc302402278 h 4

HYPERLINK l “_Toc302402279” Business premises PAGEREF _Toc302402279 h 4

HYPERLINK l “_Toc302402280” Organisation chart PAGEREF _Toc302402280 h 5

HYPERLINK l “_Toc302402287” Management & ownership PAGEREF _Toc302402287 h 5

HYPERLINK l “_Toc302402288” Key personnel PAGEREF _Toc302402288 h 5

HYPERLINK l “_Toc302402289” Products/services PAGEREF _Toc302402289 h 6

HYPERLINK l “_Toc302402290” Innovation PAGEREF _Toc302402290 h 7

HYPERLINK l “_Toc302402291” Insurance PAGEREF _Toc302402291 h 7

HYPERLINK l “_Toc302402292” Risk management PAGEREF _Toc302402292 h 7

HYPERLINK l “_Toc302402293” Legal considerations PAGEREF _Toc302402293 h 7

HYPERLINK l “_Toc302402294” Operations PAGEREF _Toc302402294 h 8

HYPERLINK l “_Toc302402295” Sustainability plan PAGEREF _Toc302402295 h 9

HYPERLINK l “_Toc302402296” The Market PAGEREF _Toc302402296 h 10

HYPERLINK l “_Toc302402297” Market research PAGEREF _Toc302402297 h 10

HYPERLINK l “_Toc302402298” Market targets PAGEREF _Toc302402298 h 10

HYPERLINK l “_Toc302402299” Environmental/industry analysis PAGEREF _Toc302402299 h 10

HYPERLINK l “_Toc302402300” Your customers PAGEREF _Toc302402300 h 10

HYPERLINK l “_Toc302402301” S.W.O.T. analysis PAGEREF _Toc302402301 h 11

HYPERLINK l “_Toc302402302” Your competitors PAGEREF _Toc302402302 h 12

HYPERLINK l “_Toc302402303” Advertising & sales PAGEREF _Toc302402303 h 13

HYPERLINK l “_Toc302402304” The Future PAGEREF _Toc302402304 h 14

HYPERLINK l “_Toc302402305” Vision statement PAGEREF _Toc302402305 h 14

HYPERLINK l “_Toc302402306” Mission statement PAGEREF _Toc302402306 h 14

HYPERLINK l “_Toc302402307” Goals/objectives PAGEREF _Toc302402307 h 14

HYPERLINK l “_Toc302402308” Action plan PAGEREF _Toc302402308 h 14

HYPERLINK l “_Toc302402309” The Finances PAGEREF _Toc302402309 h 15

HYPERLINK l “_Toc302402310” Key objectives & financial review PAGEREF _Toc302402310 h 15

HYPERLINK l “_Toc302402311” Assumptions PAGEREF _Toc302402311 h 15

HYPERLINK l “_Toc302402312” Start-up costs for [YEAR] PAGEREF _Toc302402312 h 16

HYPERLINK l “_Toc302402313” Balance sheet forecast PAGEREF _Toc302402313 h 17

HYPERLINK l “_Toc302402314” Profit and loss forecast PAGEREF _Toc302402314 h 18

HYPERLINK l “_Toc302402315” Expected cash flow PAGEREF _Toc302402315 h 19

HYPERLINK l “_Toc302402316” Break-even analysis PAGEREF _Toc302402316 h 20

HYPERLINK l “_Toc302402317” Supporting documentation PAGEREF _Toc302402317 h 21

Business Plan SummaryThe BusinessBusiness name: Credit Suisse.

Business structure: company.

ABN: 26 144 592 183.

ACN: 144 592 183.

Business location: 2000 NSW

Date established: June, 11,, 2010

Business owner(s): It is a public limited company.

Relevant owner experience: The directors of the company have a long standing reputation in the financial services sector.

Products/services:[The Company is involved in, and the provision of corporate banking and financial products. However, it does not provide retail banking to small scale customers

The MarketTarget market:

The target in this report is the retail customers and small scale business people, Credit Suisse is a big company and it is capable of attracting consumer confidence.

Marketing strategy:

The company will use aggressive marketing strategy when introducing the new product to the market. According to this strategy, the bank will do heavy advertising of the product immediately it launches in the market. This will work by convincing people to use the services, and also because the company has an already established goodwill.

The FutureVision statement:

To become the world’s most admired bank, renowned for our expertise in Private Banking & Wealth Management, including Asset Management, and Investment Banking and most valued for our advice, innovation and execution

Goals/objectives:

Open, respectful workplace that encourages people to work together and with our clients to deliver superior products, services and results and support the success and prosperity of our stakeholders

The FinancesThe company will fund the entire project because it is already a going concern, and it is doing well in the market. The cost of the project is not expected to be enormous because there are no accompanying overheads. The project should result into marginal profits of about 1 million Euros (Credit Suisse, 2012).

The BusinessBusiness detailsProducts/services: The new services of the company will entail the provision of loans and other financial form of credit to small scale entrepreneurs.

Registration detailsBusiness name: Credit Suisse

Trading name(s): Credit Suisse Australia

Date registered: 1896

Location(s) registered: Zurich

Business structure: company.

ABN: 26 144 592 183

ACN: 144 592 183

GST: Yes. The company is registered. It registered in 1st July 2002.

Domain names: Credit Suisse Australia

Licences & permits: Registration licence from Australian Prudential Regulatory Authority.

Business premisesBusiness location: The business is located in 1 Macquarie place, Sydney. However, the company will implement its retail banking proposal in stages, and it will start on the bank which is in New South Wales. This bank is strategically placed, being in the middle of the city. The bank will attract many small scale traders because many people around its locality are retail tradesmen. The retail traffic is good which is also advantageous to the banks new proposal. The bank is already operational, and it has a large building to conduct its operations. Therefore, the bank will dedicate some of its rooms to the retail banking business which is to be introduced.

Buy/lease: The Company bought itself a building. It no longer leases properties from third parties.

Organisation chartOutline your business structure in the chart below.

190500076200Mr Rainer Gut

Honorary Chairman

Mr Rainer Gut

Honorary Chairman

68389534925Mr Urs Rohner

Chairman

Mr Urs Rohner

Chairman

320040034925Peter Brabeck

Vice- Chairman

Peter Brabeck

Vice- Chairman

52705116840Figure SEQ Figure * ARABIC 1: Organisation Chart.

Figure SEQ Figure * ARABIC 1: Organisation Chart.

Management & ownershipNames of owners: The company is a limited liability public company. The major shareholders are Capital Group Companies Inc., Blackrock Inc, Franklin resources, Harris and Associates, Dodge & Cox, Norges Bank, Olayan Group and Qatar Holdings LLC.

Details of management & ownership: The company is a limited liability company which boosts a large number of public shareholders. The shareholders have bestowed the management of the company to a few able managers. The managers are responsible for the day to day running of the company, and they are also responsible to the shareholders.

Experience: The business owners are many as the company is public limited company. However, the managers of the various sectors of the company are experienced persons in the management and running of financial institutions.

Key personnelThere are over 10,000 employees of credit Suisse Company worldwide. All employees are experienced and highly qualified for the various positions they hold.

Job Title Name Expected staff turnover Skills or strengths

Chairman Mr. Urs Romner 5 years He has worked for many years in the finance industry. He has a wide experience in banking, finance and business in general.

C.E.O Mr. Brady Dougan 10 years He has an M.B.A in Finance and an M.A in economics. He has served in many companies as the Chief Executive Office. He has extensive experience in management and finance.

Required staff

[List your required staff in the table below.]

Job Title Quantity Expected staff turnover Skills necessary Date required

Retail Credit manager [1] [2-3 years] Doctoral qualification in Credit management. Practical experience in many financial companies required. June 2013

Credit Officers 5 2-3 years Doctoral qualifications in Credit management. Notable practical experience in credit management June 2013

Tellers 35 2-3 years Degree in credit management from recognised universities. They should also have practical experience in working in banks June 2013

Recruitment options

The company will invite applications from able members of the public to fill the positions of the manager and the credit officers. The advertisements will be in daily newspapers, as well as on the company websites. Some of the tellers will be recruited from outside the bank, while other will be sourced from the various departments which the bank have.

Training programs

The positions which are advertised are common positions and there should be no problem getting the required manpower for the bank. However, after recruitment, the company will have to conduct training of the selected few on job specific matters as well passing on the culture of the organisation.

Skill retention strategies

The staff will be provided with contract letters which will clearly stipulate the terms of service. The contracts so provided, will aid the employees on what is required of them by the bank. The bank also has a culture in which the current staffs are always encouraged to further their studies whenever the opportunity arises. They are also encouraged to undertake self directed learning whenever the situation allows. The company also organises learning conferences for its employees from time to time, to update the employees on any current changes in the industry.

Products/servicesProduct/Service Description Price

[Product/service name] [Brief product/service description] [Price including GST]

Retail banking This is a service which the bank will give to small scale businessmen and entrepreneurs. The bank has always done corporate banking. Retail Credit facilities The bank will award loans and other financial services to the small scale entrepreneurs and businessmen. This service will also include offering financial advice to the small scale business persons, on how to manage their businesses and accumulate savings. Market position: The services which will be provided by the bank are budget services. The competitors in this kind of service will be small upcoming banks and the bank will have a competitive edge over them because of its size and the established brand name.

Unique selling position: The Company has the competitive edge in the retail banking sector because of its already established brand name. The bank is also huge which various branches around the world. This will instil some sense of confidence to the consumers.

Anticipated demand: The anticipated demand for the product is high.

Pricing strategy: The bank has no particular marketing strategy which it will use in the new service. The bank will adopt the pricing which is usually used in the market by other banks, and modify it to suit the needs of the bank (Credit Suisse, 2013b).

Value to customer: The bank will provide very valuable services to the customers. The services are valuable because they can improve the economic and the living standards of the customers.

Growth potential: The growth is expected to grow at a high rate, and stabilize after 3 or so years.

Innovation

Research & development (R&D)/innovation activities

The sector of the bank dealing with retail credit management will involve the customers in their day to day business activities. It will get positive feedback from the customers and incorporate these feedbacks and suggestions in their future activities.

Intellectual property strategy

The bank name is registered as a trademark. There is also a confidentiality agreement which is signed by the employees when they are signing their contracts of employment letters.

InsuranceWorkers compensation: The Company has existing workers compensation insurance for its existing employees. All the company has to do is to include the employees who are due to be employed in the insurance policy. A workers compensation policy is paramount because it releases the bank of the obligation to pay compensations to employees who are injured in the course of duty, or those whose services are prematurely terminated.

Public liability insurance: The Company also has a public liability insurance, which works like a third party insurance. It absolves the company any liability it may have to the public due to negligence on their staff.

Professional indemnity: The Company has a professional indemnity cover. This is because one of the services offered by the bank to its customers is professional advice. Should this advice causes a loss to any third party, the cover will absolve the company from any liability.

Product liability: The Company has no product liability cover. This is because it only offers services and not goods to the public.

Business assets: The Company’s assets are insured against any unforeseeable event which may occur, such as fire, burglary, and violence. The assets which have been insured include buildings, vehicles and furniture and fittings and computers.

Business revenue: The Company has no business revenue cover.

Risk management[List the potential risks (in order of likelihood) that could impact your business.]

Risk Likelihood Impact Strategy

Interest rate risk Likely Medium Interest rate risk is an inherent risk in any banking and financial institution. The bank can mitigate this risk by obtaining derivatives and other hedging instruments.

Systemic risk Unlikely High This is the risk that failure of other financial institutions will affect the institution. There is no way in which the bank can mitigate this because it is caused by external factors.

Credit risk Highly likely High The bank can mitigate this risk by obtaining an insurance cover which covers its bad and doubtful debts.

Operational risk Likely High The bank is to establish strong internal controls which ensure that the operations of the bank run in accordance to stipulated operational guidelines. The internal controls should also be strong enough so as to detect any frauds which may be committed.

Legal considerations

These legislations have an impact on the way the bank will operate.

Banking Act 1974

Bankruptcy Act 1966

Cheques Act 1986

Financial Management and Accountability Act 1997

Future Fund Act 2006

Securities Industry Act 1980

Trusts Act 1991

OperationsProduction processThere is no production process as such. The bank gets its revenue through lending of money to customers. Revenue comes from the interests it charges (Credit Suisse, 2012b).

Suppliers

There are no suppliers because there are no raw materials required. This is a service industry

Plant & equipment These assets only relate to the banking division which is going to be established by the bank

Equipment Purchase date Purchase price Running cost

50 Computers February, 21 2013 $35,000 –

10 Vehicles February, 21 2013 $100,000 $6000

Furniture and fittings February, 21 2013 $8,000 –

Miscellaneous February, 21 2013 $5,000 –

Inventory

There is no inventory in this company because it is in the service industry.

Inventory item Unit price Quantity in stock Total cost

Technology (Software): The Company does not require any new software, because the ones which have been operational are custom made to perform any task which may need to be performed by the company. The software which the company uses is accounting software, website, and customised banking software. Since the software serves all the branches of the bank, it is not possible to attach a price to each of the software.

Trading hours: The credit department of the bank will open its doors to the public at 8:00am -5:00pm from Monday through to Friday. The bank will also open on Saturday mornings to accommodate those who do their businesses on weekends

Communication channels: The bank has sufficient communication channels for its customers. When the issue to be communicated is critical, the customers can call the banks hotline which is available 24hours a day, 7 days a week. Any other feedback or enquiry can be made on the banks website and drop boxes on the banking lobby. Customers can also write to the bank when the circumstances call for such action.

Payment types accepted: Cash, Credit and Cheques. Bank transfer options will also be considered.

Credit policy: There is no credit policy which has been put in place by the bank. This is because it does not offer its goods on credit.

Warranties & refunds: There are also no warranties and refunds which are involved in the business. This is because the company is in the service industry.

Quality control: The bank has followed the banking prudential guidelines which have been provided by APRA. The bank also welcomes feedback from its customers about service satisfaction, and then act accordingly, adjusting where the situation call.

Memberships & affiliations: Yes. The bank is a member of Australian Bankers Association.

Sustainability planEnvironmental/resource impacts

The company will not have any adverse effects on the environment. However, it has to be wary about waste disposal as well as conservation of natural resources.

Community impact & engagement

The company will not have any adverse effects on the community surrounding the bank.

Risks/constraints

Should there be an impact on the community, it should be noted that this will affect the brand image of the company. Customer loyalty may also be compromised.

Strategies

The company will conduct an environmental audit assessment in order to find out the extent of the impact. The audit assessment will enable the company to device ways in which to tackle the risks.

Action plan

Sustainability milestone Target Target date

Reduce water consumption

20% reduction December, 2013

Increase on natural power use like solar energy 30% increase December, 2013

The MarketMarket research

The statistical research which was undertaken was theoretical in nature, and it entailed the study of trends and performances of various banks in the Australian market.

Market targetsIt is hoped that 1 million retail accounts will be opened by the end of the year.

Environmental/industry analysisThe banking industry in Australia has stabilised over the years. It has been a source of economic growth in the country for a number of years. Most banks in Australia provide specialised services, with 21 banks providing retail banking. However, the 21 banks which provide retail banking are relatively small banks. Large banks prefer doing corporate and international accounts. This leaves a dent in the retail banking sector because the relatively small banks are facing scepticism from customers. The country is also boasting of international and foreign banks which have come to set up in Australia. They provide the much needed FDI for the country (Credit Suisse, 2013).

There is a potential for retail banking for large banks. This is where Credit Suisse bank is planning to take advantage of.

Your customers

Customer demographics

The target customers for this business venture are small scale businessmen who need a bank to bank their money, and to also get financial support. The customers could be young or old, but is predicted that most of the customers will fall between the ages of 28-45 years. These customers are spread all over, and it is difficult to point out a precise place where the bank can get an advantage.

Key customers

Businessmen and small scale entrepreneurs

Customer management

The bank will follow its existing code of conduct for serving customers. The bank will ensure customer retention by being loyal to the customers, and provide high quality services to them. The bank also hopes to take active interest in their customer concerns addressing each of their concern.

S.W.O.T. analysis[List each of your businesses strengths, weaknesses, opportunities or threats in the table below and then outline how you plan to address each of the weaknesses/threats.]

Strengths Weaknesses

Strong and committed workforce- The Company employs only highly qualified and experienced workforce. This is a positive attribute for the company because it will be able to provide quality services to its customers.

Strong internal controls- the company has set up strong internal controls, and this will minimise the incidences of operational risks.

Able management- The Company has a strong management team, which is composed of renowned individuals in the financial services industry.

The company also boasts of strong liquidity and a large capital base- this means that the company is capable of meeting its current obligations as and when they arise without liquidating its assets (Yousigma, 2013). The company has reported a high amount of expenses in their financial statements and these have a negative impact on the profitability of the venture.

Opportunities Threats

The company has branches and outlets in various countries. This has increased its consumer base, and this is likely to contribute to positive marketing of the retail business to be started.

The company has also maintained a good brand image of its existing products. This will aid in the marketing of the new product as well as in customer retention.

The company is also the only big company which is endeavouring to start providing services in small scale retail banking. This will work in its favour because it is likely to gain customer confidence (Yousigma, 2013). There is a looming threat of competition from the upcoming banks. There are over twenty banks which have taken an interest in the retail banking and credit sector.

The financial market is also unpredictable, especially after the financial recession which led to losses for many financial service providers. There is, therefore, lack of certainty on whether the venture will be successful or not.

Your competitorsOn the retail credit provision, the company would rate highly because the other players in the field are smaller banks. The bank can be rated at number 2.

Competitor details

[List at least 5 competitors in the table below.]

Competitor Established date Size Market share (%) Value to customers Strengths Weaknesses

[Competitor name] [When were they established?] [Number of staff and/or turnover] [Estimated percentage of market share] [Unique value to customers. E.g. convenience, quality, price or service?] [What are your competitor’s main strengths?] [What are your competitor’s main weaknesses?]

ANP Limited 1849 — 2% Provides a wide array of services Extensive international presence It has not specialised in any specific investment, and it is too general

Bank of Queensland 1942 — 5% Excellence customer service Heavy local presence The bank has very minimal international presence

Bankwest 1945 — 2% The prices of their services are quite affordable when compared to other banks The bank has specialised in customer friendly services, like the provision of the Bankwest Regular Saver account for individuals. Facing controversies of predatory characters on its competitor’s clients

Suncorp Group 1996 — 3% Provides a wide array of services Highly specialised financial services It is not clear to the customers whether the bank is a financial service provider, or insurance services provider

Lloyds TSB Bank 1995 after a merger of TSB and Lloyds bank —— 3.5% Provides a wide array of services The bank is very stable financially. The company has had a bad reputation of tax avoidance and money laundering.

Advertising & salesAdvertising & promotional strategy

The company will undertake an aggressive advertising strategy through print as well as digital media.

Planned promotion /advertising type Expected business improvement Cost ($) Target date

Give-aways This will help the company by drawing the attention of the prospective customers to the services which are offered $1,500 December, 2013

Print media It will help to convey information regarding the products to the very many people who access the print media. $10,000 December, 2013

Online media It will give the company international recognition, because internet can be accessed all over the world. $1,000 December, 2013

Social Campaign This will promote a one on one interaction between the bank and the prospective customers. Any ambiguity will be cleared during such an event. $ 2,000 December, 2013

Sales & marketing objectives

There is a sales and marketing department in the bank, and this helps the bank in marketing the company products. They have custom made messages and slogans which they use during such an event (Credit Suisse, 2013c).

Unique selling position

The bank is keen on the production of customer friendly products and those which address a specific consumer needs.

Sales & distribution channels

Channel type Products/services Percentage of sales (%) Advantages Disadvantages

Direct sales Banking services 100 It gives a direct contact between the customer and the bank. The customer gets encouraged in the process. It is not possible to reach a larger number of people. Selling can only be done to the people who come in contact with the staff.

The FutureVision statementTo become the world’s most admired bank, renowned for our expertise in Private Banking & Wealth Management, including Asset Management, and Investment Banking and most valued for our advice, innovation and execution

Mission statementOpen, respectful workplace that encourages people to work together and with our clients to deliver superior products, services and results and support the success and prosperity of our stakeholders

Goals/objectivesService, Excellence, Teamwork, Commitment, Risk culture and Profitability

Action planPlease note: This table does not include sustainability milestones as they are listed in the sustainability section above.

Milestone Date of expected completion Person responsible

Employment of the required staff June , 2013 Human resource department

Furnishing the Retail Credit department June, 2013 Business Development department

Acquiring of Assets June, 2013 Finance Department

Starting Operations July, 2013 The FinancesKey objectives & financial reviewFinancial objectives

Operational cost reduction

Increasing the company profits

Increase liquidity

Shorten the credit turnover days

Finance required

Around $300,000 is required upfront for the financing of company operations. This amount will be obtained from the bank’s reserves because it has been in operation. Obtaining money from outsides will cost the company in terms of interests.

AssumptionsThe financial tables on the subsequent pages are based on the assumptions listed below:

There is no adverse effect on the financial market.

No systemic risk will be faced by the company

The action plan will be implemented as stated above

The venture will receive a positive reception from the customers.

Start-up costs for [YEAR]

[Double-click the table below to enter your details or attach your own start up costing sheet at the back of this business plan.]

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Balance sheet forecast

[Double-click the table below to enter your details or attach your own Balance sheet forecast at the back of this business plan]

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Profit and loss forecast[Double-click the table below to enter your details or attach your own profit & loss sheet at the back of this business plan]

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Expected cash flow[Double-click the table below to enter your details or attach your own expected cash flow sheet at the back of this business plan]

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Break-even analysis[Double-click the table below to enter your details or attach your own table]

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References

Credit Suisse., 2012. Credit Suisse Global Investment Returns. [Online]. Available at: HYPERLINK “https://www.credit-suisse.com/investment_banking/doc/cs_global_investment_returns_yearbook.pdf” https://www.credit-suisse.com/investment_banking/doc/cs_global_investment_returns_yearbook.pdf [Accessed 7 March 2013]

Credit Suisse., 2013. Brief Presentation. [Online]. Available at: HYPERLINK “https://www.credit-suisse.com/who_we_are/doc/brief_presentation_en.pdf” https://www.credit-suisse.com/who_we_are/doc/brief_presentation_en.pdf [Accessed 7 March 2013]

Credit Suisse., 2013b. Market Focus. [Online]. Available at: HYPERLINK “https://www.credit-suisse.com/investment_banking/doc/market_focus.pdf” https:

Russian cultures and traditions

Name

Due date

Topic: Russian cultures and traditions

Russia is a federal semi- presidential republic that lies on the northern side of the Eurasian continent. It s the largest country in the world, formed by the East Slavs in the 3rd and 8th centuries.  Russian Soviet Federative Socialist Republic became the largest constituent of the Soviet Union.

The perception of home by Russian culture…

Russians view their homes in spiritual aspect; they have the perception and respect for their homes as a spiritual dwelling and are sacred. According to their culture a home should not be built in regions close to cemeteries, where tragic events have occurred or marshy places. They have good or bad places for building their homes hence they just do not build any where they must first follow the spiritual aspect about it. This is evident in some of the decorations and objects in their homes; tables are a symbol of prosperity in the house, should be covered by a white cloth and people should not eat on uncovered table. They consider home as a place to relax and have bonding time with the family.(Singleton, 88)

Effects of Western culture on Russians…

After the post-war period in the Soviet Union isolation of the youth, lead to no infiltration of the western way of living in Russia; consequently western youth culture and their lifestyle rarely infiltrated the soviet nation. Under Khrushchev’s rule though, things began to change the western ways slowly dissolved in the Russian youth. Over the past half century the Russian youth have changed and have little in common as compared to the past. The youth started imitating the western culture which lead gradually to the diminishing of Russian culture. The ‘normals’ (soviets who had not embraced westernization) used their leisure time the soviet way but the ones who had already embraced the western way combined both leisure activities and studying which was not the trend before. The type of music too changed and suggested more of the western way than the soviet way; Russians viewed music as an element of the soul while the west viewed it as an element of the body, leading to a difference in the kind of music produced in the country (Pilkington, 7).

 Russians and religion…

Russia has been a Christian community from the past. Most of the population are of Christian religion. There are two theories to the origin of Christianity in Russia one theory suggests that Russia started as a catholic community another describes them as an Orthodox community. From the time of Peter the great to Alexander there has been conflict between the catholic community and the Orthodox institution, through protest and demonstrations organised by the Orthodox brotherhood. This institution and form of religion has dominated most of Russia and has hindered most of other Christian forms and other religions from establishing themselves (Fagan, 3).

 The influence of Dostoevsky on Russian culture…

He was supportive of the Russian legacy in Europe and always wanted Russia to maintain that aspect. He was very interested in the European literature, and as a child he would dream of himself travelling to countries like Italy and Switzerland. He promoted the importance of Europe to Russia and the other way round and encouraged people to ignore the western culture. He is quoted saying “do you not know how dear this land is to us and the tribes that constitute it?” he was a patriot to Russia even after his years in prison he still sent messages for people to love and take their mother country seriously and proudly. He influenced people to follow and preserve their cultural heritage (Rzhevsky, 131). He found the Russians more noble and above other people in European community. He foresaw a bad end in the west and warned Russia to stay away from the west to prevent it from falling as the rest of the nations did. He supported the knowledge of all cultures though even though he still wanted people to live the Russian way; through knowledge about other European cultures he believed that Russia would be the saviour of Europe. He influenced people to maintain their families and the relationship and customs in the family set up in Russia.

Stereotypes about Russians in media…

After the fall of the Soviet Union as others may still see Russia as a strong nation, western nation, U.S.A does not see it that way. And they have lost interest in the country. But as result they do not have an idea of the political, social and cultural development going on in the country. Some of the stereotypic information being passed on about Russia are; Putin is a former KGB member who is suppressing opposition and accumulating power, that Russian media is not free and is under state control, that Russians live under Putin’s tyranny, brutality and human right violation still are found in Chechnya. That Kremlin supports Hamas and Iran (Barfoot, 67).

This is the history religious and political status and origin of Russia. Russians are people that respect and love their country and still have the hope to keep it their strength and maintain their culture.

Cited work;

Fagan, Geraldine. Believing in Russia – Religious Policy After Communism. Hoboken: Taylor and Francis, 2012. Print.

Pilkington, Harry. Looking West?: cultural globalization and Russian youth cultures. University Park: Pennsylvania State University Press, 2002. Print.

Rzhevsky, Nicholas. An anthology of Russian literature from earliest writings to modern fiction: introduction to a culture. Armonk, N.Y.: M.E. Sharpe, 2005. Print.

Singleton, Amy C.. Noplace like home the literary artist and Russia’s search for cultural identity. Albany, NY: State 

Barfoot, C. C.. Beyond Pug’s tour: national and ethnic stereotyping in theory and literary practice. Amsterdam: Rodopi, 1997. Print

Credit Risk What We Know, What We Dont Know And What We Should Know 1

Credit Risk: What We Know, What We Don’t Know And What We Should Know

What we know

Credit risk has been for a long time been accredited to a number of financial crises in the world most recently the collapse of asset backed commercial paper (ABCP) in 2006 and 2007 which was caused by massive defaults of mortgages which had been issued by various financial institutions in the US with very high rates. This collapse set out a chain of happenings to result in a very serious global financial crisis ever since the Great Depression in the 1930s. This has been one of the major negative impacts of credit risk to organizations. Improper management of credit risk has led to fall of major financial institutions in the world e.g. Lehman Brothers.

In this essay credit risk and Credit Risk Grading (CRG) will be discussed and the importance of CRG to an organization will be spelt out.

CRG is a very crucial activity which organization needs to include in their risk management processes. We all know that no type of risk can be completely eliminated but organizations should continually pursue ways in which they can mitigate its impacts incase the unexpected happens.

Credit Risk

This is the possibility that a counter party or borrower will not meet the agreed upon obligations. More than 50% of the entire risk elements in banks and financial institutions worldwide are Credit risk alone. Managing credit risk in attaining efficient management of financial institutions has increasingly become an important task. Management of credit risk is about identifying, measuring, matching mitigations, monitoring and controlling of the exposures of credit risk (Nickell, et al 1998).

Credit risk mostly does not happen in isolation. For instance, an interest rate rise can be detrimental to the creditworthiness of the issuer of the bond hence increasing the credit risk of the financial institution holding the bonds. On the other hand a fall in the bond value increases the market risk for the financial institution.

What we don’t know

Credit Risk Grading

Credit risk grading (CRG) refers to a pre-specified scale which reflects the credit risk which is underlying for a given level of exposure. Credit risk uses employs the use of alphabet/symbol/number which represents the risks associated with a certain credit exposure. CRG is the appropriate module for establishing a system of credit risk management.

Credit Risk Grading is a crucial element that helps in the process of credit risk management as it helps the various financial institutions in understanding the dimensions of risk that come along when dealing with credit transactions. This task of credit risk grading of lines of business, borrowers and business activities provides a better view of the credit portfolio quality of a financial institution. Credit risk grading systems are important in taking appropriate decisions at both post and pre-sanction stages (Carey, 1998).

Credit grading helps at the pre-sanction stage to sanction authority in deciding on whether to lend or not, the extent of exposure, what the lending price should be, the various facilities, appropriate credit facility and the numerous risk mitigation techniques to put a cap on the level of risk (Lopez, 1999a).

CRG can be beneficial at the post-sanction stage in helping financial institutions decide about the depths of the renewal or review, the frequency of the review, frequency of the grading and several other measures to be taken. CRG should be invoked at the start of lending and it should be updated annually. Grading of credit risk should however be reviewed in instances of adverse events. Portfolio monitoring entails that financial institutions should come up with reports concerning credit risk exposure by risk grade. Enough migration and trend analysis should be done to come up with any credit facility deterioration. Accuracy and consistency of the grading of the credit risk should be periodically examined by a function for instance an independent credit review.

What we should know

Functions of Credit Risk Grading

CRG systems that are well managed promote soundness and safety in financial institutions through enhancing decision making which is informed. Credit risk is measured by grading systems which also differentiates groups and individual credits by the risks they offer. CRG allows management and examiners of financial institutions to observe trends and changes in their levels of risk. CRG further allows the management of financial institutions to efficiently manage risk and optimize their results (Kupiec, 1995).

Use of Credit Risk Grading

The CRG matrix allows the use of standards which are uniform to credits in order to attain a common standardized view in order to easily asses the credit portfolio of a business, unit, line or the financial institution as a whole, or the quality of individual obligor.

Grading of credit risk would be relevant in monitoring and surveillance and assessing the risk profile of a financial institution.

The CRG provides a measurement of risk which is quantitative which gives the level 0f risk of the borrower hence enabling fast decision making.

CRG offers a quantitative framework used for assessing the requirement in provisioning of the portfolio of credits of financial institutions.

The CRG results are relevant for credit selection at individual level, as borrowers and their risk exposure is already rated (Carey, 1998).

In summary

In taking lessons from the sub-prime mortgage lending crisis also commonly known as ‘mortgage meltdown’ or ‘mortgage mess’ that started in the US mortgage market, financial institutions can now understand better the concept of credit risk that existed in the sub-prime borrowing by individuals and lending by financial institutions.

After considering the importance of credit risk grading, it is therefore a noble idea for players in the financial system to develop carefully a model for grading credit risk which is in line with the objective outlined above (Berkowitz, 1999).

References

Altman, E.& Saunders, A., (1997). “Credit Risk Measurement: Developments over the Last Twenty Years,” Journal of Banking and Finance, 21, 1721-1742.

Basle Committee on Banking Supervision, (1999). “Credit Risk Modelling: Current Practices &Applications,” Basle Committee on Banking Supervision, Basle. (http://www.bis.org/press/index.htm)

Berkowitz, J., (1999). “Evaluating the Forecasts of Risk Models,” Manuscript, Trading Risk Analysis Group, Federal Reserve Board of Governors.

Carey, M., (1998). “Credit Risk in Private Debt Portfolios,” Journal of Finance, 53, 1363-1388.

Diebold, F.X., Gunther, T. & Tay, S., (1997). “Evaluating Density Forecasts with Applications to Financial Risk Management,” International Economic Review, 39, 863-883.

Diebold, F.X., Hahn, J. &Tay, A.S., (1998). “Real-Time Multivariate Density Forecast Evaluation and Calibration: Monitoring the Risk of High-Frequency Returns on Foreign Exchange,” Manuscript, Department of Economic, University of Pennsylvania.

Diebold, F.X. and Lopez, J.A., (1996). “Forecast Evaluation and Combination,” in Maddala, G.S. and Rao, C.R., eds., Handbook of Statistics, Volume 14: Statistical Methods in Finance, 241-268.Amsterdam: North-Holland.

Diebold, F.X. and Mariano, R., (1995). “Comparing Predictive Accuracy,” Journal of Business and Economic Statistics, 13, 253-264.

Kupiec, P., (1995). “Techniques for Verifying the Accuracy of Risk Measurement Models,” Journal of Derivatives, 3, 73-84.

Lopez, J.A., (1999a). “Regulatory Evaluation of Value-at-Risk Models,” Journal of Risk, forthcoming.

Lopez, A., (1999b). “Methods for Evaluating Value-at-Risk Estimates,” Federal Reserve Bank of San Francisco Economic Review, forthcoming.

Nickell, P., Perraudin, W. & Varotto, S., (1998). “Ratings- Versus Equity-Based Credit Risk

Modelling: An Empirical Analysis.” Manuscript, Conference on Credit Risk Modelling & Regulatory Implications.

The Chinese Cultural Values in Individual Roles And Responsibilities As Derived From Confucius Philosophy

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Date

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The Chinese Cultural Values in Individual Roles And Responsibilities As Derived From Confucius Philosophy

Individual duties and responsibilities to our families, friends, government and society are beyond our capacity to act as we deem fit. However, the shared interests and beliefs attained through participation and cooperation both at the individual level, and the societal level founds the responsibilities. To live a fulfilling life, according to early Chinese culture, it is essential to understand the shared beliefs and the common interests of people living in that community. These values determine people’s behaviour, which reflects the roles of individuals to society. Early Chinese culture require individuals to accomplish duties and responsibilities to families, friends, government and society at large by aligning their actions with commitment, harmony, honesty, benevolence, and righteousness, these values are derived from the philosophy of Confucius.

Portraying the acts of honesty, wisdom, righteousness and benevolence from how the people advocated the same during the particular times, explains the sources of these values in the Chinese culture. According to (Cua, n.d) the basic virtues are considered important, leading and guiding, cardinal and very compendious. The core societal value is harmony as it brings coordination between humankind and nature and people of the society. Harmony leads to the growth of other values such as honesty, commitment, benevolence and righteousness. Harmony enhances the relationship between the government and the people of the community. Duties and Responsibilities of individuals were based on the societal and government roles or service to friends and family. The Chinese culture provided the foundation of societal roles, especially in families and service to the society, as well as the government in providing services to the community.

Individuals are expected to accomplish their duties and obligations with honesty through trustworthiness, integrity and credibility. (Lau, 66) In one Confucius quotes says, “I do not see how a man can be acceptable who is untrustworthy in his word”. Through this quote, the Chinese culture understood that honesty is a vital value in gaining trust from society. A man has to be honest to be accepted by the community. Most importantly, in obtaining wealth, an individual should consider other individuals to acquire wealth reasonably through their labour and not by committing crimes or cheating. From the master’s words in (Lau 61), “poor yet delighting in the way, wealthy yet observant of the rites”. Lau still stresses on honesty in acquiring wealth through this saying. The Chinese Culture embraced this value among its people to improve the services to family, friends and society. Honesty in work develops acceptance from the community and trust from friends and family.

According to Confucius philosophy, (Lau 59) gives a quote that, “It is rare indeed for a man with cunning words and an ingratiating face to be benevolent”. The quote links honesty to benevolence. An honest individual could easily acquire the value of benevolence to other people of the society. Honesty is a foundation for one to possess different values. Possession of the value of openness creates a good relationship with the people in the society. When one is honest, they are trusted by individuals, which creates kindness and love to other people of the community. The Chinese culture leadership and governance is based on honesty since its citizens believe an honest government. Honesty can also be applied to familial connections in efforts to make it stronger as it creates trust and kindness towards fellow family members.

Individuals should extend the virtue of benevolence to familial ties and blood connections. Using the Confucius philosophy, (Lau 73) through a quote says, “benevolent man is attracted to benevolence because he feels at home in it”. The quote shows the importance of familial ties and the satisfaction brought by the same. Benevolence is valued in the Chinese culture as it states the benefits of the familial relations, by blood, in friendships and the relationship between people in the society. Benevolence has kept the Chinese people together through their cultural values. Confucius philosophy is the source of these values, and it encourages values such as wisdom, loyalty and self-discipline among people in the society hence instilling peaceful coexistence. The peaceful coexistence motivates individual and societal prosperity. It founds the importance of performing one’s roles to the community in the Chinese culture. When an individual develops benevolence within oneself, it drives them towards the same value as it creates the feeling of completeness and peace, which makes it easy for the individual to dwell in that situation.

A quote from Confucius philosophy says, “when a man sets his heart on benevolence, he will be free of evil” (Lau 73). The quote shows that benevolence is a very vital virtue as it brings one too close to heart. It directs an individual to practice honesty and depart from evil activities. Benevolence makes it possible to express love and kindness from the heart hence gives the sense of equality for every individual. Therefore, loving everyone and being kind to them prevents one from planning evil against one another and instead wish for the best for them and even by being part of their happiness and successes. Benevolence creates the togetherness in the Chinese culture hence justifies the service to one another. Equality indeed supports prosperity for every individual, therefore, frees the society from evil. By bringing family and blood relatives close shows love and commitment to one’s specific duties.

Individuals should accomplish their duties with commitment. Just as Lau 66 says in one of Confucius philosophy quotes, “Faced with what is right, to leave it undone shows lack of courage”. This quote means that individuals should commit themselves to do right regardless of the obstacles. Challenges are a part of human life, and it requires courage to overcome them. When people have the interest and are committed to achieving successful lives, they attain prosperity. In Chinese society, when an individual performs their roles regardless of the challenges they face, it defines courage and becomes an example to others. Failure to tackle the issue at hand describes cowardice; hence, the individual cannot earn respect from society. Confucius founded this value and embraced by Chinese culture. It also states that duties accomplished by a committed individual are usually perfect and to the standard required by the society and government, which contributes to the growth of people and society.

Besides courage in commitment, (Lau 66) uses Confucius Quote that,” Commitment bears positive results”. This quote means that with commitment to duties as dictated by the society and government, one is predisposed to succeed. Chinese culture uses its rites to encourage involvement in its individuals. Just as derived from Confucius philosophy, with the laid-out responsibilities and roles of every individual, commitment is essential. It pushes one to ensure they are successful in their work. This value applies to the functions in the families, to friends and those developed by society. To add on, the government also gives responsibilities to individuals in society, and it is only possible to perform them if one is committed to attaining the set objectives and goals. Committed individuals work to the expectation of the society hence bear positive results of growth and an excellent example to other people. Exemplary commitment to doing things is well advocated in ancient Chinese culture.

Justice and correctness should dictate our daily activities and decisions. Righteousness is key to success in ancient Chinese culture. According to (Lau 63) book, a quote from Confucius analects, says, “When your parents are alive, comply with the rites in serving them; when they die, comply with the rites in burying them; comply with the rites in sacrificing to them”. Confucius, through the quote, stresses on compliance to rites to at all times. Conforming to rights depicts righteousness to the culture. In addition, according to (Tsai, 159) righteousness is the inner core of morality that guides an individual in their lives. The Chinese culture, currently complies to the rites during every occasion, either during ceremonious times and also during funerals and sad moments. The quote gives the importance of righteousness as it is the basis of harmonious relationships with friends, society and the family. The citation uses parents as the example hence showing that being righteous to the rites guides on the roles one has to their families and society. Justice and correctness develop the value of righteousness in people, that help in daily activities and decision making, on matters affecting individuals and society.

The Chinese culture holds their rites in high esteem as it guides them in performing their culture and in their responsibilities in society. As (Lau 70) says, “You will be looked upon as obsequious by others if you observe every detail of the rights in serving the lord”. The quote stresses more on righteousness to the culture’s rites and the impact that one receives from complying with the rites. The quote is from Confucius philosophy but is used by the Chinese culture to ensure respect and obedience to the rites of their culture. As one earns respect from other people because of observing rights, they can serve society and their families with ease. Trust is earned through respect. Confucius provides the importance of righteousness to the community hence is adapted to by the Chinese culture. Righteousness is a virtue that cannot be omitted in our daily life as it dictates the choices made in performing the daily activities.

It is essential to understand the shared beliefs and the common interests of people living in a particular place to understand what individual people owe to their friends, families, societies, and governments. Commitment to one’s responsibilities and roles, honesty towards one’s sources of wealth, benevolence towards people of the family and community, as well as righteousness encompassing correctness and justice, are the virtues aligned with one’s obligations and duties as expected by the society and the government. (Confucius-1.com, 2019) article states that the Confucius analects has been the foundation of Chinese education for almost two thousand years. This statement proves that the Chinese culture values were derived from the Confucius Philosophy. It is from the philosophy that the culture was able to set its societal values in performing individual roles and responsibilities to the society, family, friends and the government.

In general commitment, honesty, benevolence, and righteousness are the basis for peaceful coexistence and fulfilment of obligations to families, friends, government and the society in the Chinese culture and derived from the Confucius Philosophy.

List of References

Confucius-1.com. (2019). Analects of Confucius. [online] Available at: http://www.confucius-1.com/analects/ [Accessed 21 Nov. 2019].

Cua, A. (n.d.). Confucian philosophy, Chinese. Routledge Encyclopedia of Philosophy.

Lau, D.C. Confucius: The Analects (New York: Penguin, 1979).

Tsai, D. (2005). The bioethical principles and Confucius’ moral philosophy. Journal of Medical Ethics, 31(3), pp.159

Credit default swap

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Credit default swap

Credit default swap is a financial agreement whereby a seller of the CDS agrees to compensate the buyer in a situation where he defaults to repay a loan or other types of credit. The buyer makes several payment to the supplier after which he receives a payoff in the event that the payment is defaulted. In a default situation, the CDS buyer is compensation and the seller retains possession of the loan defaulted. There are situations whereby anyone is allowed to buy CDS including buyers who do not have an insured interest in the credit advance. Such CDS are known as Naked CDS.

CDS may act as credit insurance in that a bond holder may hedge against its risk of default. Investors may also buy or trade off protection if even if they may not be in possession of debt of entity in reference. The naked CDS enables dealers to guess on the credit worthiness of entity being referenced. Naked CDS constitutes the larger number of CDS in the market. CDS can also be utilized in the capital structure of a business. The reference entity is usually a government or a corporation. It should be noted that the reference person is not included in the contract. In a situation where the reference obligor defaults, the seller compensates the purchaser based on the worth of the bond in exchange for actual and tangible delivery of the bond. Settlement may be done through cash or through auction.

Credit Default Swaps were discovered in the early 1990s following trades that were conducted by bankers trust in early 1991. Later in 1994, JP Morgan Bank introduced the modern CDS. JP Morgan had extended a loan to Exxon, The bank then faced damages charges of more than the money it had extended. As a result the bank sold its credit to EBRD. The bank did this in order to improve its balance sheet. Increase in default risk increased which made regulators to have concern about and the risk was viewed as the cause of Saving & Loan crisis. They found the use of CDS to reduce default risk more appealing. In 2000, CDS became independent and was deregulated where the regulatory bodies held that CDS could not be categorized as either futures or securities.

Initially, banks formed the major players in CDS market. This was because CDS was basically used to hedge against risks of banks’ lending activities. This gave banks an opportunity to liberalize capital that was under heavy regulation. The banks eventually lost the high market share they held with credit default swaps as other asset managers noted opportunities in them. By 2002, investors dominated CDS market as speculators, unlike banks which were hedgers. The market for credit non-payment exchanges expanded greatly in from 2000 to 2007. But in 2008, it was hit by portfolio compression and the market dramatically dropped.

In 2009, there were changes that were done to oversee on the way CDS operated. This resulted into concerns of the safety of the financial instrument. The concerns followed the events of 2008 that led to decrease of CDS’ market by 38%. The European and the United States regulators are working to bring stability to derivative markets. The major changes are in two dimensions. The first one is introducing central clearing houses. The clearing houses serve as the main party existing between the buyer and the seller. This would reduce the difficulties that exist between the buyer and the seller in undertaking transactions using the instrument. The other one is the international standardization of contracts involving CDS. This would reduce legal disputes that involve determination of payout. Analysts and strategists argued that the two major changes would boost the market for CDS and enhance the environment at which transactions are conducted.

There are various criticisms about credit default swaps. The critics argue that the market of CDS has been left to expand extensively without proper regulation. They also argued that the contracts are negotiated privately hence the market lacks transparency. They also argue that the CDS market contributed largely to the 2008 financial crisis. In contrast, proponents of CDS argue that reduction of confidence causes confusion in the cause and effect and that spreads reflects that a particular user is in dire financial troubles.

Critics have also held that CDS contributed to breakdown in negotiations during reorganization of General Motors in 2009. They argued that bondholders would benefit event where the company would be declared bankrupt. They argued that the creditors of the company were pushing the company to be declared bankrupt. They add that it would be difficult to determine the writers and the buyers since transactions of the contract lacked transparency. They argued that the absence of transparency contributed to the buyers and protection writers being omitted from the negotiations. This means that credit swap risks is a financial risk that can be used to hedge against risk as well as increasing portfolio in which investors speculate in financial markets.

The Chinese Cultural Values in Individual Roles And Responsibilities As Derived From Confucius Philosophy (2)

Name

Date

Instructors Name

Course Number

The Chinese Cultural Values in Individual Roles And Responsibilities As Derived From Confucius Philosophy

Individual duties and responsibilities to our families, friends, government and society are beyond our capacity to act as we deem fit. However, the shared interests and beliefs attained through participation and cooperation both at the individual level, and the societal level founds the responsibilities. To live a fulfilling life, according to early Chinese culture, it is essential to understand the shared beliefs and the common interests of people living in that community. These values determine people’s behaviour, which reflects the roles of individuals to society. Early Chinese culture require individuals to accomplish duties and responsibilities to families, friends, government and society at large by aligning their actions with commitment, harmony, honesty, benevolence, and righteousness, these values are derived from the philosophy of Confucius.

Portraying the acts of honesty, wisdom, righteousness and benevolence from how the people advocated the same during the particular times, explains the sources of these values in the Chinese culture. The core societal value is harmony as it brings coordination between humankind and nature and people of the society. Harmony leads to the growth of other values such as honesty, commitment, benevolence and righteousness. Harmony enhances the relationship between the government and the people of the community. Duties and Responsibilities of individuals were based on the societal and government roles or service to friends and family. The Chinese culture provided the foundation of societal roles, especially in families and service to the society, as well as the government in providing services to the community.

Individuals are expected to accomplish their duties and obligations with honesty through trustworthiness, integrity and credibility. (Analects, 66) In one Confucius quotes says, “I do not see how a man can be acceptable who is untrustworthy in his word”. Through this quote, the Chinese culture understood that honesty is a vital value in gaining trust from society. A man has to be honest to be accepted by the community. Most importantly, in obtaining wealth, an individual should consider other individuals to acquire wealth reasonably through their labour and not by committing crimes or cheating. From the master’s words in (Analects, 61), “poor yet delighting in the way, wealthy yet observant of the rites”. Lau still stresses on honesty in acquiring wealth through this saying. The Chinese Culture embraced this value among its people to improve the services to family, friends and society. Honesty in work develops acceptance from the community and trust from friends and family.

According to Confucius philosophy in (TTCh, 58), Zhiming says,” honesty help the government achieve their duties serenely”. This means that honesty is essential in running the government and individual duties to the government. When the government is not suspicious, the people in the society believe in it as they are able to explain the governments activities and works. The individuals in the Chinese culture trust their government because of the virtue of honesty, which creates the foundation of its activities. As individuals give their honest opinions and suggestions on the state of government, it easily develops strategies to serve the people and accomplish duties efficiently. A credible government attracts trustworthiness of the society, which in turn creates honest individuals. Honesty value was derived from the Confucius philosophy and adapted by the Chinese culture. Honesty also applies to familial connections in efforts to make it stronger.

Individuals should extend the virtue of benevolence to familial ties and blood connections. Using the Confucius philosophy, (Analects, 73) through a quote says, “benevolent man is attracted to benevolence because he feels at home in it”. The quote shows the importance of familial ties and the satisfaction brought by the same. Benevolence is valued in the Chinese culture as it states the benefits of the familial relations, by blood, in friendships and the relationship between people in the society. Benevolence has kept the Chinese people together through their cultural values. Confucius philosophy is the source of these values, and it encourages values such as wisdom, loyalty and self-discipline among people in the society hence instilling peaceful coexistence. The peaceful coexistence motivates individual and societal prosperity. It founds the importance of performing one’s roles to the community in the Chinese culture. When an individual develops benevolence within oneself, it drives them towards the same value as it creates the feeling of completeness and peace, which makes it easy for the individual to dwell in that situation.

A quote from Confucius philosophy says, “when a man sets his heart on benevolence, he will be free of evil” (Analects, 73). The quote shows that benevolence is a very vital virtue as it brings one too close to heart. It directs an individual to practice honesty and depart from evil activities. Benevolence makes it possible to express love and kindness from the heart hence gives the sense of equality for every individual. Therefore, loving everyone and being kind to them prevents one from planning evil against one another and instead wish for the best for them and even by being part of their happiness and successes. Benevolence creates the togetherness in the Chinese culture hence justifies the service to one another. Equality indeed supports prosperity for every individual, therefore, frees the society from evil. By bringing family and blood relatives close shows love and commitment to one’s specific duties.

Individuals should accomplish their duties with commitment. Just as (Analects, 66) says in one of Confucius philosophy quotes, “Faced with what is right, to leave it undone shows lack of courage”. This quote means that individuals should commit themselves to do right regardless of the obstacles. Challenges are a part of human life, and it requires courage to overcome them. When people have the interest and are committed to achieving successful lives, they attain prosperity. In Chinese society, when an individual performs their roles regardless of the challenges they face, it defines courage and becomes an example to others. Failure to tackle the issue at hand describes cowardice; hence, the individual cannot earn respect from society. Confucius founded this value and embraced by Chinese culture. It also states that duties accomplished by a committed individual are usually perfect and to the standard required by the society and government, which contributes to the growth of people and society.

Besides courage in commitment, (Analects, 66) uses Confucius Quote that,” Commitment bears positive results”. This quote means that with commitment to duties as dictated by the society and government, one is predisposed to succeed. Chinese culture uses its rites to encourage involvement in its individuals. Just as derived from Confucius philosophy, with the laid-out responsibilities and roles of every individual, commitment is essential. It pushes one to ensure they are successful in their work. This value applies to the functions in the families, to friends and those developed by society. To add on, the government also gives responsibilities to individuals in society, and it is only possible to perform them if one is committed to attaining the set objectives and goals. Committed individuals work to the expectation of the society hence bear positive results of growth and an excellent example to other people. Commitment to doing things righteously is well advocated in the ancient Chinese culture.

Justice and correctness should dictate our daily activities and decisions, righteousness is key to success in ancient Chinese culture. (Strange writing, 100) says, “There are not only individual benefits but also collective and social benefits”. Yang meant that one should do what is right and avoid harming others since through the Confucius theory, Justice not only seeks to benefit an individual, but also the society at large. On the other hand, correctness is the basis for justice. As individuals are corrected whenever they go wrong, they do the same by showing concern to other people’s issues hence supporting and creating an advantage to the social lives of individuals. The Chinese society believes that everyone is responsible for the growth or failure of the country. This value is supported by encouraging individuals to seek what benefits themselves and also the society. Justice and correctness develop the value of righteousness in people, that help in daily activities and decision making, on matters affecting individuals and the society.

(Strange writing, 103) in a Confucius philosophy quote says, “Give me your head and your sword and I will avenge you” This showed that no matter the command from the top, it is always your duty to abide by it and do the right thing. Correctness instilled in people’s minds, directs them to know the right and wrong. Therefore, as command comes from the top, an individual should first evaluate if it is right to abide by it or not. Also, in an anthropology of poetry and criticism by women writers of china, a poem on the heartfelt feeling of separation expresses the failure of paying respect to dead parents (APC, 31). The Chinese performs the rites of last respect to date, which shows that the Confucius philosophy is the source of righteousness value embraced by the Chinese culture. Righteousness is a virtue that cannot be omitted in our daily life as it dictates the choices made in performing the daily activities.

It is essential to understand the shared beliefs and the common interests of people living in a particular place to understand what individual people owe to their friends, families, societies, and governments. Commitment to one’s responsibilities and roles, honesty towards one’s sources of wealth, benevolence towards people of the family and community, as well as righteousness encompassing correctness and justice, are the virtues aligned with one’s obligations and duties as expected by the society and the government. The Chinese culture has these values, which derived from the Confucius Philosophy. It is from the philosophy that the culture was able to set its societal values in performing individual roles and responsibilities to the society, family, friends and the government.

In general commitment, honesty, benevolence, and righteousness are the basis for peaceful coexistence and fulfilment of obligations to families, friends, government and the society in the Chinese culture and derived from the Confucius Philosophy.

List of References

1. Chang, Saussy. Women writers of Traditional China: An Anthology of Poetry and Criticism. (Stanford University Press, California)

2. Lau, D.C. Confucius: The Analects (New York: Penguin, 1979).

3. Strange Writing : Yang, Xianyi Poetry and prose of the Han, Wei, and Six Dynasties (Beijing: panda Book, 1986).

4. Zhiming, Yuan. Tao Te Ching Original Text and A Modern Interpretation. (Bloomington, United States, 2010).

Obesity in America

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Obesity in America

Obesity is an increasingly awkward public health concern amongst all ages especially those who are morbidly obese. The condition has indiscriminately cut across racial, ethical, sex, age and socioeconomic groups and although detecting it is easy, it is very hard to treat. Obesity is a sophisticated challenge that scientists are struggling to understand and there are various causes regarded as responsible including genetics, combinations of hormonal, metabolic, and behavioral aspects (Bassett et al. 24-28). It is quite challenging doctors to understand why an individual accumulates excess fat in the body and reasons behind the sharp rise of the condition in the industrialized world. Obesity epidemic is of a great concern in the United States because of the serious health challenges it is associated with and is believed to be caused by several things including scientific reasons, environmental factors, and psychological issues.

Although obesity may not pose as a serious disease compared to other contagious diseases such as flu and irreversible such as AIDs or even deadly ones like cancer, there are higher probability of heart-related diseases, depression, diabetes, and premature aging of the body associated with it. Obesity may start at a tender age as evident in many parts of America because many children are overweight. However, the children’s family who do not encourage them to be active and do enough exercise as well as living healthy life may contribute the problem (Preston and Andrew 2137-2143). Some of the reasons that make U.S one of the obese countries in the world are obvious including increase utilization of fast food, technology use, high stress level, and other social and behavioral factors.

According to Bassett et al., increase and expansion of fast-food restaurant in America that serve more than 50 million Americans per day largely causes obesity amongst US population (24-28). Some of the fast food companies include McDonald, Jack in the Box and Wendy that provides cheaper fast food that greatly attracts many Americans. Most people prefer quick, easy, and cheap meals that turn out unhealthy (Ali 93-97). A good number of American populations tend to eat substantial fast food and soft drinks such as French fries, pizza, cheeseburgers and Coca cola that are amongst the top metabolism inhibitors in the current society.

Consuming fast food is triggered by many factors including heavy advertising attached to it and minimization of health concerns attributed to the food by the companies (Bassett et al., 24-28). Fast food manufacturers spend heavily in advertising their products thus occupying various forms of advertising media, an aspect that makes larger population to be aware of them. Americans are lured to consumption of junk food that has replaced the desire for organic food hence decreasing metabolism. It is therefore clear that Americans’ poor eating habits has negatively influenced their weights and the quantity of fat in their bodies because the fast food industry has slowly become one of the Americans cultures (Vos et al. 1587-94).

Stress is another factor contributing to weight gain in America because several Americans are worried of finances, family, health, and issues about home that causes stress and eventually overweight (Hojjat Web). There are many things to do that Americans do not take their time to relax and eliminate stress. Increase in stress largely contributes to overweight that eventually lead to obesity. Moreover, the nature of work people do in America contributes to overweight especially jobs that see people relaxing and burning less fat. Most Americans also either do not do exercises because they are too lazy to do exercise or are occupied by other things they deem significant (Preston and Andrew 2137-2143). Many Americans sit in front the televisions while youths and teens love playing high-tech and exciting video games. Activities most people engage in involve little movement, an aspect that proves very risky to human body.

Preston and Andrew explain that society’s contribution to obesity is evident and therefore being obese is not just a personal problem because it is ripened into a huge social challenge (2137-2143). The age of modern living and technology has seen growing cases of obesity thus making it a fully grown social problem and a much talked about issue in the current era. There is notion of modernization of current living that although benefits the society to a certain level, it directs us to the pit of obesity. There are issues such as genetically modified food and junk foods that have been contributed by the changing lifestyle that raises percentage of obese cases. Vos et al. explain that families play integral role in the society and because obesity is an outcome of addictive eating, lack of physical exercise, stress and lack of awareness of medical and social problems, families can always control the rise of obesity cases (1587-94).

American society does not seem to promote habits that prevent obesity such as healthy eating and introduction of exercise habits. According to Centers for Disease Control and Prevention, obesity epidemic sees 35.7% of adults and 16.9% of children between ages 2 and 19 (Web). Childhood obesity accounts for almost 18% of deaths amongst American population of years between 40 and 85 caused by obesity related diseases. Families can take charge and engage in practices that may reduce the cases causing obesity. For instance, they may keep gardens and grow organic food that may provide the best solution because most people will shun fast food (Hojjat Web). Families may further introduce other practices such as introducing exercise amongst their children and other family members thus reducing activities such as playing video games and watching TV that tend to reduce metabolism rates. It is therefore apparent that families have all the responsibilities of either contributing or reducing the many obese cases.

Obesity, in American perspective is a great threat to the society because it contributes to death and other obesity related diseases. Most people are trying hard to adopt lifestyle and strategies to combat obesity. Centers for Disease Control and Prevention categorizes some of the obesity related conditions as heart disease, stroke type 2 diabetes and some kinds of cancer that are very deadly in human life (Web). Estimated medical cost of obesity in the United States is very high and in 2008, CDC puts the cost at $ 147 billion. There is also perception that obesity affects some groups more than others where non-Hispanic blacks have the highest age adjusted rates of obesity at 49.5%, Mexican-Americans 40.4%, all Hispanics 39.1% and Non-Hispanic whites are the least in the obesity affection by groups at 34.3%. Moreover, obesity cases depend on socioeconomic status of individuals where the high earning individuals are found to be more likely to be obese compared to their low income counterparts although higher income women are less likely to be obese than low income women (Heshmat 77-85). Centers for Disease Control and Prevention further explain that there is no relationship existing between obesity and education amongst men as in the case of women (Web).

CDC asserts that obesity prevalence varies across different regions in America especially states and that there is no state with less than 20% prevalence (Web). It is well known amongst Americans that obesity is a multifaceted health concern involving both biological, behavioral, and environmental sources and energy imbalance acts as the primary cause of obesity challenge (Masters et al. 1895-901). However, many Americans do not seem to take the issue seriously. Although a few people have changed their food choices and eating habits, some are too reluctant to change. Many people do not also meet the recommended levels of moderate exercise and many more do not engage in leisure time activity. It is therefore worth noting that consumers and the entire American population play an insignificant role in reducing obesity cases. Overall energy expenditure has been reduced and most Americans feel that riding in a car is much better than walking to work. Behavior change poses a great challenge to most people who do not find it easy to change their diet and engage in exercise. Looking at the whole issue of obesity cases in America, the consumers are the greatest victim because of failure to change from their old habits and activities causing obesity to more healthy habits.

Consumers’ choices about food and lifestyle are core in addressing weight gain issues on individual level. According to Ali, consumer decisions are influenced by cultural, psychological, taste, quality, price, and convenience making it difficult for them to avoid the causes of obesity (93-97). Consumer attitude tends to differ to what they understand to be the right thing. Consumers are reluctant and are not ready to avoid behaviors encouraging healthy eating because they are confused about conflicting messages concerning fat, carbohydrates, protein and calories as well as general and reliable nutrition information that may make them responsible in their dietary decisions.

Hojjat believes that there is also food industry to be blamed in the higher rise of obesity cases because they tend to concentrate more on financial incentives than the plight of consumers (Web). Ali explains that most companies and food chains such as McDonald are only sensitive to consumer tastes and expectations instead of giving clear, consistent, and honest product claims that may help consumers make responsible decisions (93-97). Nutrition education and awareness amongst the public to meet individual nutritional needs and enhance consumer responsibility when it comes to consumption should be conducted.

It is undeniable that obesity is a great problem in America and it has greatly reduced the quality of life and the state of health. American popularity needs to be taught about the risk of fast food and other behaviors that tend to decrease metabolism. Food industry needs to be concerned with health challenges facing consumers and commit themselves to food products and improved old organic foods to supply various healthy alternatives (Bassett et al. 24-280. Food industries should encourage sale of food products that satisfies consumers’ variety of dietary needs and lifestyles after teaming up with government, academia, and health communities to fight obesity.

Several Americans have made attempts of fighting obesity battle in vain because of their desire and increased consumption of junk food and failure to achieve fitness goals (Heshmat 185-192). Most of the challenges that obese victims ought to deal with are very unfortunate and therefore adopting good behaviors and good life may be more fulfilling. Obesity is indeed an epidemic of great concern in the United States because of the serious health challenges it is associated with and is believed to be caused by several things including scientific reasons, environmental factors, and psychological issues.

Works Cited

Ali, Naheed. The Obesity Reality: A Comprehensive Approach to a Growing Problem. Lanham, Md: Rowman & Littlefield Publishers, 2012. Print.

Bassett et al. “Active Transportation and Obesity in Europe, North America, and Australia.” Institute of Transportation Engineers. ITE Journal 81.8 (2011): 24-8. ProQuest. Web. 16 Mar. 2014.

Centers for Disease Control and Prevention. Overweight and Obesity. USA.gov, 2012. Web. 17 Mar. 2014. http://www.cdc.gov/obesity/data/adult.html

Heshmat, Shahram. Eating Behavior and Obesity: Behavioral Economics Strategies for Health Professionals. New York: Springer Pub. Co, 2011. Print.

Hojjat, Tahereh Alavi. “THE ECONOMIC ANALYSIS OF OBESITY”.ProQuest. Web. 16 Mar. 2014.

Masters, Ryan et al. “The Impact of Obesity on US Mortality Levels: The Importance of Age and Cohort Factors in Population Estimates.” American Journal of Public Health 103.10 (2013): 1895-901. ProQuest. Web. 16 Mar. 2014.

Preston, Samuel H., PhD., and Andrew Stokes A.M. “Contribution of Obesity to International Differences in Life Expectancy.” American Journal of Public Health 101.11 (2011): 2137-43. ProQuest. Web. 16 Mar. 2014.

Vos, Rimke C., et al. “The Effect of Family-Based Multidisciplinary Cognitive Behavioral Treatment on Health-Related Quality of Life in Childhood Obesity.” Quality of Life Research 21.9 (2012): 1587-94. ProQuest. Web. 16 Mar. 2014.