How Do The Neolithic And Paleolithic Revolutions Differ

Essential Questions: Chapter One Write a response to each of the following questions and / statements. Your responses must be written in complete sentences and should demonstrate an understanding of the course content. 1. How do the Neolithic and Paleolithic Revolutions differ? Ultimately, the Neolithic Revolution advanced society past the basic Paleolithic era, forming a new type of living. The culture introduced in the Neolithic Revolution moved beyond nomadic styles of living and introduced agriculture, which allowed tribes to settle down and form communities. Through the different type of living, new concepts and culture formed: the concept of private property was introduced, which advanced society greatly. 2. What impact does the surplus production of agriculture have on societies? If societies are able to not only create a constant food supply, but also have a surplus of food, it allows them to begin specializing labor onto areas other than farming. The focus may still be on farming however select amounts of people can now specialize on other things like building tools, architecture, science, etc. This creates a tremendous impact because it allows the civilization to advance in areas other than growth. New ideas can make the society more efficient and quickly increase the carrying capacity. 3. What controversy exists over the use of the term civilization? The term civilization has acquired a controversy because of the connotations it has adapted to carry. AShow MoreRelatedPaleolithic vs Neolithic Cc Essay766 Words   |  4 Pages one being the Stone Age. During the Stone Age there were two major subdivisions, the Paleolithic and Neolithic periods. The Paleolithic, which lasted until about 10,000 years ago, had a significant separating factor from the Neolithic, ending in 2000 B.C.E. This factor was the way in which the people in these periods acquired food. The Paleolithic people hunted and gathered their food while the Neolithic people produced their own food by agriculture. These two different styles of obtainingRead MoreEarly Expression Of Religious Art1597 Words   |  7 Pagesfacilitate thorough drying and firing. The firing process most likely resembled that used today in Nigeria, in which the pieces are covered with grass, twigs, and leaves and burned for several hours. China Early forms of art in China are from the Neolithic Yangshao culture, which dates back to the 6th millennium BC. Archeological findings have revealed that the Yangshao made pottery; early ceramics were unpainted and most often cord-marked. The first decorations were fish and human faces, but theseRead MoreThe Birth of Civilization18947 Words   |  76 Pages page 5 HOW DID control over water resources influence early Middle Eastern civilizations? ANCIENT NEAR EASTERN EMPIRES page 14 HOW DID conquest and trade shape early empires in the Near East? EARLY INDIAN CIVILIZATION page 16 WHAT INFLUENCES did the first Indus valley civilization have on later Indian religious and social practices? EARLY CHINESE CIVILIZATION page 23 WHY DID large territorial states arise in ancient China? THE RISE OF CIVILIZATION IN THE AMERICAS page 27 HOW DID agricultureRead MoreThe Evolution Of Human Beings2346 Words   |  10 PagesHuman beings have attributes that differ them from other primates †¢ Ex. Better grip because of thumb, high sexual drive, are able to confide in both plants and animals as their source of energy, facial expressions, etc. †¢ Homo Erectus – Came about 500,000 - 750,000 years ago (less apelike; spread throughout Africa, Asia, and Europe) †¢ Homo sapiens sapiens – Of which we are descended from, came to be 120,000 years ago, in Africa. − Ideas improved in the Paleolithic period †¢ Rituals were held and caveRead MoreArchaeology Notes19985 Words   |  80 Pagesextracted from the fossils. A fossil without its context is almost useless because there is no way of assessing how old it is, what kind of environment it lived in, what other animals it might have lived around it. In order to answer the above issues, geology is applied. It is the study of the earth, which allows us to understand the preservation, age, and environment in which fossils are found. HOW TO BECOME A FOSSIL In reality very few living things become fossils. Not only does a minute fraction of living

Comparison of Guth and Ginsberg model of corporate entrepreneurship

Question: Describe the Compare with .guth and ginsberg model of corporate enterpreneeurship? Answer: Introduction Entrepreneurship is known as a characteristic or process that helps to design, launch and run a new business. An entrepreneur must have the willingness to develop, organize and manage a business startup along with any of its risks to increase its market growth (Fairlie and Holleran 2012). It is the responsibility of an entrepreneur to act as a business leader and innovator of new ideas and business strategies. The Foremost task of an entrepreneur is to explore the market to find out opportunities. According to those opportunities, he develops business plans, hires human resources, acquires financial and nonfinancial resources and provides leadership to the organization to make its market position firm and wealthy (Ogunleye 2012). Risk taking is another supreme responsibility of entrepreneurs as it is highly important for a startup company to exploit all the available options in the market before choosing one. An entrepreneur must have skills and qualities to choose the right option a mong the alternatives. Therefore, it can be said that success and failure of a new venture solely depend on its entrepreneurs as they decide what to do and what not to do (Kuratko 2016). To understand and implement right strategies for a company an entrepreneur must have proper entrepreneurship skills like flexibility, focus, ability to invest for long term goals, self-reflection, and self-reliance, traits like determination, risk taking abilities, eager to learn, passionate towards his business and high level of confidence. However, these were only a few examples of skills and traits an entrepreneur needs to have in him but becoming a successful entrepreneur demands much more than these. Therefore, this report will focus on all possible traits and skills a leader need to transform into a successful entrepreneur. However, according to Baum et al. (2014), there is no foolproof map to entrepreneur greatness, but successful entrepreneurs all have the following skills and traits. Literature Review According to Leutner et al. (2014), passion, drive, self-discipline and flexibility are the most important traits of entrepreneurship. However, according to, Obschonka et al. (2012), it is not possible to point out exact traits to become a successful entrepreneur as some successful entrepreneurs did not have some of the traits defined by (Choi and Lee 2014) but still they did well in their respective organizations. However, there is no doubt that, a successful entrepreneur must have most of these traits if he wants to develop his business and organization is in a successful manner. Figure 1: five-trait model of entrepreneurship (Source: Leutner 2014) Passion Entrepreneurship is not a path for the phlegmatic. If an entrepreneur does not have any passion for whatever he is thinking and doing, then the path is not for them. It is highly possible that a startup company will experience many difficulties, setbacks, and challenges (Omorede 2015). Therefore, it a person does not have passion towards his work, as an entrepreneur, he will not be able to handle the pressure. For example, Raaja Nemani and Aaron Firestein, the founders of BucketFeet Shoe Company faced tremendous challenges when they tried to start their new venture. Even after launching their first bunch of Shoes, they asked their friends and families to buy their products. This shows the passion within them (Omorede 2015). Drive According to Hamilton (2014), passion is a very important trait for an entrepreneur, on the other hand, (Lo et al. 2015) states that drive is more important than passion as plenty of people are passionate about their hobbies, but they are not ready to make a full-time business of them. Drive is a very important trait as for an entrepreneur it is essential to overcome hurdles, get through long hours and failures and keep moving and updating the products and services. For example, Mark Zuckerberg, the founder and present CEO of Facebook, faced numerous challenges, after he and his roommates launched this social site. However, he never backed down and his willingness to become successful allowed him to make Facebook as one the most popular networking sites in the world (Omorede 2015). Self-Discipline An entrepreneur must be a disciplined person and leader. Being the boss of the company does not mean that an entrepreneur will sleep till noon and will take an endless vacation unless he does not want to run his company successfully (Espritu and Sastre 2015). Any new venture will face several challenges and distractions. Being the leader of the company, an entrepreneur must show same discipline, responsibility, dedication and hard work like his employees to achieve the desired goals. Flexibility An entrepreneur not only carries the responsibilities of a leader but also performs different tasks in the initial stages. It is obvious that a new company does not have a huge number of employees who can perform every task under every department. Therefore, an entrepreneur acts like an accountant, marketer, PR representatives, project manager and service agent. According to Yang et al. (2014), an entrepreneur must be willing to dive into all aspects of the business to give it a successful start. However, according to, Todorovic et al. (2015), doing not everything alone is the right thing for an entrepreneur. He also says that an entrepreneur must focus on the goals of marketing, promotion and collect financial and non-financial resources because those are the primary concerns for a startup company. Motivation In some cases, it is seen that people are leaving their well-settled jobs to open their businesses. Those people are believed to be self-motivated people who want to do something on their own. For example, Raaja Nemani, one of the founders of BucketFeet Shoe Company of Chicago, left his job and joined hands with Aaron Firestein to open their new venture. They were highly motivated and focused about their business. However, it is not necessary that other employees will feel the same motivation because it is just a job for them. Therefore, as an entrepreneur, it is important that he can motivate the employees to perform at their best level (Estay et al. 2013). For start-up businesses, it is obvious that an entrepreneur runs short on financial resources; therefore, he cannot offer rewards like bonus payments and increments to motivate his employees. In this situation, an entrepreneur must communicate with his employees regularly to give them feedback on their performance. An entrepreneu r must not hesitate while appraising an employee in front of other employees by saying thank you for his good performance. In this way, he can motivate the other employees of the organization. However, according to Lewis and SIU (2015), finding out proper traits for an entrepreneur is not easy as above. He states that an entrepreneur must follow the Guth and Ginsberg model of entrepreneurship to become a successful leader in his organization. Figure 2: Guth and Ginsberg model of entrepreneurship (Source: Soriano and Huarng 2013) Unlike the previous entrepreneurship model that includes passion, drive, self-discipline, flexibility and motivation as the five most important traits, Guth and Ginsberg model of entrepreneurship describes a whole new idea of entrepreneurship. According to Guth and Ginsberg model, there cannot be any straightforward and simple model that can describe the traits of an entrepreneur. They divided the entrepreneurship into two sections, The first division of the model describes a new business within existing organization like the one Wal-Mart did in 2001 by joining hands with Stanley Works and selling the hand tools and mechanic tools of the company by opening a new business segment in their existing business structure (Caraway 2015). The second part of the model describes the transformation of an organization through renewal as if the one Volkswagen is planning to transform their technical structure to deal with their Cheating Emission Scandal (Goel 2015). It is obvious that for both of the divisions, different entrepreneurship skills are required. For example, while a company is starting a new business within the existing structure, the leader or entrepreneur of that particular business must focus on new business strategies, structures, processes and core values. He does not need to think about how his employees will do as the employees already understand the existing structure and brand value of the company. Therefore, they will perform with a good level of motivation because they are already familiar with the rewards they will get. That entrepreneur will never have to worry about financial resources, as he will get support from the existing structure of the company. Besides, that entrepreneur will get ample amount of support while promoting the new brand, communicating with stakeholders and distributors and setting a precise goal. On the other hand, while transforming an organization, entrepreneurs will face several challenges. For example, Volkswagen is currently planning to transform their entire technical structure after their "Cheating Emission Scandal." They will have to withdraw near about 800,000 cars from all over the Europe to upgrade their engines to meet the rules and regulations of Environmental Protection Agency (EPA). Dealing with this situation will not be an easy task for the entrepreneurs of the company, as they will have to start from the beginning. Besides, upgrading 800,000 cars with the help of an existing number of employees is not possible. Therefore, entrepreneurs of Volkswagen will have to come up with the strategy to recruit new employees under short-term employment contracts. They will have to work hard to regain the trust of the customers, shareholders and distributors also. It can be said that for the entrepreneurs who are working to transform their organization will have to follow different traits than those entrepreneurs who are simply opening a business section under an existing organization. However, according to Aulet (2013), Guth and Ginsberg's theory is not a foolproof model of entrepreneurship. He states that the model follows a flow chart and, therefore, depicts a sequential relationship between entrepreneurship factor and entrepreneurship. This model also does not suggest how the entrepreneurs of a new company should act to provide a positive start to the business. On the other hand, entrepreneurship model supported by (Baum et al. 2014), describes two additional traits that are not present in the five entrepreneurship model and entrepreneurship model of Guth and Ginsberg. Those traits are a willingness to fail and strong social logistic network. Willingness to fail According to Audretsch (2015), successful entrepreneurs must follow the adage "nothing ventured, nothing gained." Entrepreneurs should not be afraid while taking a reckless decision. They must understand that failure is part of life and without failure; it is possible to understand and find the right paths. An entrepreneur who never fears failure can take best possible decisions in even the worst cases. Strong social logistic network Being an entrepreneur of a startup company is a very tough job to handle as in the initial stages he has to face scarcity of financial and non-financial resources. Having a strong social logistic network can help an entrepreneur to collect support from various places. For example, strong presence in social networks can help an entrepreneur to find out a person or persons who have similar interests or can invest in the company willingly. Raaja Nemani contacted Aron Firestein on Facebook before they opened their new venture BucketFeet. Conclusion The literature review clearly indicates that entrepreneur traits are very important to become a successful leader in an organization. However, it is said that describing and finding an accurate and efficient trait model is not possible as different businesses demand different skills and qualities. For example, skills and qualities of an entrepreneur in a construction business will be different from an entrepreneur who is committed to a service organization. In spite of this difference, researchers have identified five common traits that can help any entrepreneur disregarding their business background. It is true that an entrepreneur must have passion, motivation and self-discipline in him to achieve success in any industry. An entrepreneur must understand that the company highly depends on him. Besides, the employees who have no idea about how to proceed and perform will follow the footsteps of their respective entrepreneurs to guide themselves. Therefore, entrepreneurs must present themselves as an icon by doing exemplary works. Some authors like Guth and Ginsberg focused on different business levels before finding out proper entrepreneurship skills and qualities. First, they provide two sections of business like a new business for an existing company and transformation of the current organization. Then they pointed out entrepreneurship skills related to those different business scenarios. However, that entrepreneurship model is also not a foolproof model, as it does not suggest how an entrepreneur should organize his work style and attitude while starting a new business venture. Therefore, it is seen that each model has some flaws in it and various other authors criticize them. However, none of the models is completely wrong as each of them consist information that can help entrepreneurs in one way or another. Business Description Tesla Motors is an American based Automotive and Energy Storage Company that designs, manufactures and sells electric vehicles, powertrain components and battery products. In the year of 2003, Martin Eberhand and Marc Tarpenning founded the company and provided financial help until Elon Musk took all the responsibilities in his soldier (Liu et al. 2014). The primary idea of the company was to manufacture luxury cars and vehicles that will run on electricity. From past few years, diesel costs are rising in a rapid way. Therefore, the founders of the company felt the urge to manufacture a car that can run on electricity which is easy to afford. Besides, most of the countries in the world are fighting with the increasing level of pollution. Governments of the countries are developing several rules and regulation to prevent pollution caused by cars and vehicles (Moritz et al. 2015). Founders of the Tesla Motors understood this fact and decided to start their company as an electric vehicl e manufacturer organization. Another positive reason that helped the founders was the absence of any competitor in the market. Car and vehicle industry is full of competition where companies like BMW, Mercedes, Audi, Porsche, Aston Martin and Landrover are continuously upgrading and changing their strategies to outnumber each other. With almost no experience, it was very difficult for Tesla Motors to join such a market. Tesla founders noticed that most of these companies were planning to manufacture cars that run on electricity. Therefore, they did not hesitate to launch their first model Tesla Roadster before any other company could. Entrepreneurial characteristic of Tesla Motors In the year of 2003, Elon Musk joined Tesla Motors as its new CEO. It was a time when the company had nothing to offer, employees were confused and the company did not have any financial backup. The entrepreneurship skill of Elon Musk helped the company to acquire a satisfactory market position and to transform itself into a vehicle-manufacturing giant (Kedrosky 2013). The following table is presented to describe the entrepreneurship skills of Elon Musk Entrepreneurship skill of Elon Mask Justification Self Discipline Elon Musk strongly believes that a successful entrepreneur must not have any ego within himself. Therefore, even after selling his PayPal company to eBay for $1.5 billion and joining Tesla Motors in 2003, he kept contact with the other two co-founders of PayPal, Peter Thiel and Max Levchin. Risk taking characteristic Elon Musk was successfully handling his companies like PayPal and X.com when he decided to sell PayPal and join Tesla Motors. Undoubtedly, it can be considered as one of the riskiest decisions of all time. Elon received $165 million from selling PayPal to eBay for $1.5. He invested every penny of that into Tesla Motors. After doing that, he was cash-broke and he had to take personal loans from friends. However, his risk paid off successfully as Tesla has become one of the most popular car manufacturing companies that are suppressing competitors like BMW, Audi and Mercedes. Table 1: Entrepreneurship skills of Elon Musk (Source: Kedrosky 2013) Business Opportunity The idea of the electronic car development is a unique business idea which will be able to provide a high level of profitability to the organization. To understand the opportunity for the business idea in the present UK market, the macro environment analysis of the company with the specific product has to be considered. Macro-Environment analysis (PEST): Political and Legal factors Present UK government is encouraging the development of electronic vehicles, which is very good for the company. Supporting the electronic vehicle development by the government was initiated in the year of 2011. An amount of almost 200 million will be granted between the time-period of 2015 2020 for the development of electronic cars. This grant will help the company to launch the new products without facing any budget issue (Trop and Cardwell 2014). The present UK government is also helping to develop the infrastructure for using the cars by the users. They are supporting the local authorities and common people to start the use of the electronic cars and helping them to install the domestic charge points for the cars. The users of the electronic cars will be free from giving the congestion and parking charges in the government sectors. Economic and Environmental Factors Both of the economic and environmental factors of the business of electronic cars are associated with the energy sources of the vehicles (Abdulsater 2014). Besides, the high increasing price of the present energy sources is also hampering the global environment. Global warming is a big issue which can be reduced by the use of the electronic vehicles. Initially, Tesla Model Roadster had a price of $100,000. At that time, the economy of the UK was going down; therefore, customers could not gamble on a car which is new and out of the world. Sociological factors Present customers are more concerned about the environmental development which is increasing the demand for the electronic vehicles (Martin 2014). The governmental initiatives and the present situation of the world are forcing the consumers towards the electronic cars. Technological factors The technology today has been updated to a higher level which is influencing the development of electronic cars. There are some issues in this area such as lack of public charging points, overheating of the battery and extended time required for charging (Anderman 2014). Both of the company and the government are trying to overcome these issues with the help of their RD activities. Industry analysis (Porters five forces) Figure 3: Porters five forces model (Source: Author) Industry rivalry There is no such high level of competition (Martin 2014). Threat of substitutions The electronic car is a new product and at this time, the company has nothing to worry about the substitutable product. Bargaining power of the customers The product is unique which will be the cause of less bargaining power of the customers. Bargaining power of the suppliers A lot of suppliers are available to supply the electronic equipment which is the cause of high bargaining power of the suppliers. Barriers to entry There is no such legal or competitive issue to enter the market (Rimmer 2014). Market analysis The electronic cars have a high demand in the present UK market. At present, there are no such big competitors in the area of the electronic cars (Martin 2014). The company has a big opportunity to face a high growth with the business of the electronic cars. Marketing Plan of Tesla Motors The marketing plan of Tesla Motors can be described using the 4Ps of marketing mix model. 4Ps of Marketing Mix The marketing mix is a general phrase used to describe the different kind of choices an organization has to make in the entire process of bringing a product of or service to market. 4Ps model is the best-known model of the marketing mix. Four elements of this model are product, price, place and promotion. Figure 4: 4Ps of Marketing Mix model (Source: Mangram 2012) Product Tesla is an electric vehicle manufacturing company that also builds and sells powertrains and batteries to third party companies. However, their primary products are luxury cars and vehicles. The reason for choosing this option as a business product is very simple. Tesla founders noticed that there were no other companies, who were selling eco-friendly electric vehicles (Park et al. 2014). Therefore, they did not hesitate to launch their first electric vehicle Model Roadster. Price There are several pricing strategies available in the market. One of those strategies is to launch the initial product at a high price to create a high brand image for the product. Tesla followed the same rule as they launched their first vehicle Model roaster at a price of $101,500 (Moritz et al. 2015). However, their strategy backfired as a car that expensive could give only 20m/hour to the customers. Recently, Tesla changed their way of thinking by configuring their car Model-S capable of giving 60m/hour. Besides, the authority of Tesla is also planning to release their new Model-X at a lower price because they want to enter the lower part of the market also. Place From the first day, Tesla planned to make their presence in the global market, rather than focusing on local markets. Therefore, according to their product, they selected places where diesel prices are high or places where the government is strict about environmental and pollution laws (Trop and Cardwell 2014). They also targeted markets like China and UK where the economy is wealthy, and customers can buy cars at that high price. Promotion Tesla had major issues while selling their cards in different states. Some states like New Jersey, Massachusetts, Michigan and West Virginia, do not allow any Tesla stores or showrooms. Therefore, the authority of Tesla applied a great idea to promote their brand in those states by opening Tesla Galleries in those states (Mangram 2012). They used their galleries to educate the local people about the brand and the cars of Tesla Motors. The gallery also helps the local people to understand the importance of electric vehicle and how it can help to keep the environment safe. Projected sales Figure 5: Projected sales of Tesla Vehicles (Source: Rimmer 2014) Operations and Human Resources plan It is very important to select a proper strategy for the business before launching the product in the target market. The different types of roles and responsibilities and the HRM strategy for the new business are discussed in the section below: Operational Strategy Ownership The ownership of the new business will be the shareholders of the Tesla Motors. Location of the business The business will be conducted in the present UK market. Equipment These include the electric vehicles, power trains, superchargers. The battery of Tesla is different from the batteries of regular cars, but it is a trade secret between Tesla and Panasonic (Kwan 2015). Materials The main body of the Model S uses small structural force fields which are made of woven composite materials from duranium and tritanium allows. Human Resource Management Strategy Responsibilities of the management team The management is responsible for the proper recruitment and management of the human resources of the business. They have the high level of responsibility to hire the right people for the right job and providing them the required facilities for performing better in the workplaces (Liu et al. 2014). Most important three responsibilities of the management team are recruitment, job designing, monitoring and motivating the employees. Recruitment strategy Two major sections of the new business are the development and the marketing of the electronic cars. Different types of qualities are required for these two segments of the business. The recruiters of the company should follow a proper structure for the recruitment process through which they can be able to verify all the required qualities of the applicants (Kwan 2015). After selecting the applicants initially, they have to test the ability of the applicants in the practical field. This can be done by considering their past experiences or by taking some practical tests. Motivational Strategy The first step of the motivational strategy is to give proper training to each of the new employees. Training helps the employees to understand the job responsibilities and opportunities for the future growth. These facts help the employees to get the high level of job satisfaction and motivation at the time performing in the workplaces. To motivate the employees the management should provide all the basic facilities besides the salary (Liu et al. 2014). At the time high level of success in the selling of the cars, the company should provide rewards to the employees for motivating them. They should give incentives for performing better in both of the development and marketing section of the company. Finance plan The estimated structure of Starting funds is laid below: Start-Up funding Start-Up Expenditure $ 50,500 Start-Up Assets to Fund $ 20, 000 Total $ 70,500 Tesla Motors aims to assume business operations with $ 70,500 as Start-Up funding. Later the firm plans to accumulate funds by virtue of other investments. The balance sheet of the firm is outlined below: Assets Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Cash and short-term investments $50,000 $22,542 ($2,583) ($13,295) ($37,504) ($61,107) Accounts receivable 35,000 35,000 35,000 35,000 35,000 35,000 Total inventory 16,000 16,000 16,000 16,000 16,000 16,000 Prepaid expenses 0 0 0 0 0 0 Deferred income tax 0 0 0 0 0 0 Other current assets 5,000 5,000 5,000 5,000 5,000 5,000 Total current assets $106,000 $78,542 $53,417 $42,705 $18,496 ($5,107) Buildings $105,000 $105,000 $105,000 $105,000 $105,000 $105,000 Land 100,600 100,600 100,600 100,600 100,600 100,600 Capital improvements 0 0 0 0 0 0 Machinery and equipment 82,000 82,000 82,000 82,000 82,000 82,000 Less: Accumulated depreciation exp 0 4,000 42,148 81,044 120,688 161,080 Net property/equipment $287,600 $283,600 $245,452 $206,556 $166,912 $126,520 Goodwill $0 $0 $0 $0 $0 $0 Deferred income tax 1,200 1,200 1,200 1,200 1,200 1,200 Long-term investments 0 0 0 0 0 0 Deposits 0 0 0 0 0 0 Other long-term assets 0 0 0 0 0 0 Total assets $394,800 $363,342 $300,069 $250,461 $186,608 $122,613 Liabilities Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Accounts payable $4,500 $4,500 $3,000 $3,000 $1,500 $1,500 Accrued expenses 0 0 0 0 0 0 Notes payable/short-term debt 0 0 0 0 0 0 Capital leases 0 0 0 0 0 0 Other current liabilities 150 150 150 150 150 150 Total current liabilities $4,650 $4,650 $3,150 $3,150 $1,650 $1,650 Long-term debt from loan payment calculator $80,000 $65,522 $50,320 $34,358 $17,598 $0 Other long-term debt $34,500 $33,000 $36,000 $42,000 $46,000 $49,000 Total debt $119,150 $103,172 $89,470 $79,508 $65,248 $50,650 Other liabilities 0 0 0 0 0 0 Total liabilities $84,650 $70,172 $53,470 $37,508 $19,248 $1,650 Equity Initial balance Year 1 Year 2 Year 3 Year 4 Year 5 Owner's equity (common) $56,000 $56,000 $56,000 $56,000 $56,000 $56,000 Paid-in capital 200,500 200,500 200,500 200,500 200,500 200,500 Preferred equity 0 0 0 0 0 0 Retained earnings 0 (15,480) (65,051) (103,697) (153,290) (202,687) Total equity $256,500 $241,020 $191,449 $152,803 $103,210 $53,813 Total liabilities and equity $341,150 $311,192 $244,919 $190,311 $122,458 $55,463 Here, the balance sheet clearly outlines a fair image of the financial movements and how the firm functioned during the year. General Assumptions: Sales growth will bea minimum of12% annually, the prospects of margins is excellent, profits at approximately 20% - 25%, cash flow adequate. Marketing will remain below 7% of sales. The company will invest residual profits into financial markets or real estate. Future cash investments will use NPV projections to achieve maximum return with limited risk. The two decade record of positive growth for specialty automobile industry will continue at a healthy rate. The Automobile Association is of the view that the market is far from saturation and will not reach maturity until at least 2019. Despite recession other global economic issues, automobile industry has shown strong growth every year for the past two decades. Automobile industry will continue to be considered an affordable luxury. 16% minimum sales growth rate over the next three years as Tesla Motors assumes more popularity. The P/L or Profit and Loss of Tesla Motors is discussed below: Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Gross revenue $112,400 $115,772 $121,561 $129,462 $138,524 Cost of goods sold 52,490 53,802 55,685 58,470 62,855 Gross margin $59,910 $61,970 $65,875 $70,992 $75,670 Other revenue [source] $0 $0 $10,000 $0 $0 Interest income $1,200 $0 $0 $0 $0 Total revenue $61,110 $61,970 $75,875 $70,992 $75,670 Operating expenses Sales and marketing $10,000 $10,250 $10,609 $11,139 $11,975 Payroll and payroll taxes 25,000 $25,625 $26,522 $27,848 $29,937 Depreciation 4,000 38,335 38,709 39,270 40,205 Insurance 9,000 $9,225 $9,548 $10,025 $10,777 Maintenance, repair, and overhaul 12,300 12,608 12,731 12,915 13,223 Utilities 7,500 $7,688 $7,957 $8,354 $8,981 Property taxes 8,000 $8,200 $8,487 $8,911 $9,580 Administrative fees 16,000 $16,400 $16,974 $17,823 $19,159 Other 5,000 $5,125 $5,304 $5,570 $5,987 Total operating expenses $96,800 $133,455 $136,840 $141,855 $149,823 Operating income ($35,690) ($71,485) ($60,965) ($70,863) ($74,154) Interest expense on long-term debt 3,590 2,866 2,106 1,308 470 Operating income before other items ($39,280) ($74,351) ($63,070) ($72,171) ($74,623) Loss (gain) on sale of assets 0 0 1,000 0 0 Other unusual expenses (income) 0 0 0 0 0 Earnings before taxes ($39,280) ($74,351) ($62,070) ($72,171) ($74,623) Taxes on income 30% 0 0 0 0 0 Net income (loss) ($39,280) ($74,351) ($62,070) ($72,171) ($74,623) The P/L as explained above, of Tesla cuts a positive picture as far as finance is concerned. To begin with the operations the firm will incur expenses. But with time, the firm will consolidate and strengthen its finances. In complaint with taxes and other compliances the firm has performed well. The cash flow of Tesla is laid as below: Year 1 Year 2 Year 3 Year 4 Year 5 Total Operating activities Net income ($39,280) ($74,351) ($62,070) ($72,171) ($74,623) ($322,495) Depreciation 4,000 38,335 38,709 39,270 40,205 160,519 Accounts receivable 0 0 0 0 0 0 Inventories 0 0 0 0 0 0 Accounts payable 0 (1,500) 0 (1,500) 0 (3,000) Amortization 0 0 0 0 0 0 Other liabilities 0 0 0 0 0 0 Other operating cash flow items 0 0 0 0 0 0 Total operating activities ($35,280) ($37,516) ($23,361) ($34,401) ($34,418) ($164,976) Investing activities Capital expenditures $0 $0 $0 $0 $0 $0 Acquisition of business 0 0 0 0 0 0 Sale of fixed assets $0 $0 ($1,000) $0 $0 (1,000) Other investing cash flow items 0 0 0 0 0 0 Total investing activities $0 $0 ($1,000) $0 $0 ($1,000) Financing activities Long-term debt/financing ($15,978) ($12,202) ($9,962) ($12,760) ($14,598) ($65,500) Preferred stock 0 0 0 0 0 0 Total cash dividends paid 0 0 0 0 0 0 Common stock 0 0 0 0 0 0 Other financing cash flow items 0 0 0 0 0 0 Total financing activities ($15,978) ($12,202) ($9,962) ($12,760) ($14,598) ($65,500) Cumulative cash flow ($51,258) ($49,718) ($34,323) ($47,161) ($49,016) ($231,476) Beginning cash balance $50,000 ($1,258) ($50,975) ($85,299) ($132,459) Ending cash balance ($1,258) ($50,975) ($85,299) ($132,459) ($181,476) In fine, the cash flow of Tesla Motors provides us with a detailed analysis of financing activities. It also portrays the cash balance or the cash in hand at the beginning of operations. Further the above table indicates about the length of investing activities as well as long term finance. Going forward the company will only accumulate further funding from other sources as mentioned above and strengthen the overall financial health of the organization, by and large. References: Abdulsater, A., Balasubramanian, A., Wang, B., Madani, F., Mansour, M. and Talla, R., 2014. Technology Road Map for Tesla Motors Sedan EV. InPlanning and Roadmapping Technological Innovations(pp. 215-238). Springer International Publishing. Audretsch, D.B., Heger, D. and Veith, T., 2015. Infrastructure and entrepreneurship.Small Business Economics,44(2), pp.219-230. Aulet, B., 2013.Disciplined entrepreneurship: 24 steps to a successful startup. John Wiley Sons. Baum, J.R., Frese, M. and Baron, R.A., 2014.The psychology of entrepreneurship. Psychology Press. Caraway, B., 2015. 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Personality and Entrepreneurship.Personality and Entrepreneurship (May 19, 2014). Hardman, S., Shiu, E. and Steinberger-Wilckens, R., 2015. Changing the fate of Fuel Cell Vehicles: Can lessons be learnt from Tesla Motors?.International Journal of Hydrogen Energy,40(4), pp.1625-1638. Kuratko, D., 2016.Entrepreneurship: Theory, process, and practice. Cengage Learning. Kwan, N., 2016."Tesla Motors Quality Engineering Application and Implementation" by Nick Kwan. [online] Digitalcommons.calpoly.edu. Available at: https://digitalcommons.calpoly.edu/imesp/162/ [Accessed 23 Feb. 2016]. Leutner, F., Ahmetoglu, G., Akhtar, R. and Chamorro-Premuzic, T., 2014. The relationship between the entrepreneurial personality and the Big Five personality traits.Personality and individual differences,63, pp.58-63. Lewis, L.F. and SIU, W.S., 2015. Corporate Entrepreneurship and Ethical Decision-Making of Marketing Managers. InProceedings of the 1997 World Marketing Congress(pp. 646-655). Springer International Publishing. Liu, Y.E., Kang, Y., Wu, H., Chen, C. and Hon, E., 2014. Tesla Motors Inc. Case Synopsis. Lo, M.C., Hsu, Y.C. and Drozda, M., 2015, December. Entrepreneur's priority traits on creative and innovative behavior in technology era-case of innovative new start-up businesses. InIndustrial Engineering and Engineering Management (IEEM), 2015 IEEE International Conference on(pp. 455-459). IEEE. Mangram, M.E., 2012. The globalization of Tesla Motors: a strategic marketing plan analysis.Journal of Strategic Marketing,20(4), pp.289-312. Martin, C., 2014. Driving change in the battery industry.Nature nanotechnology,9(5), pp.327-328. Nasdaq.com,2016.TSLA Balance Sheet. [online] Available at: https://www.nasdaq.com/symbol/tsla/financials?query=balance-sheet [Accessed 23 Feb. 2016]. Obschonka, M., Silbereisen, R.K. and Schmitt Rodermund, E., 2012. Explaining entrepreneurial behavior: Dispositional personality traits, growth of personal entrepreneurial resources, and business idea generation.The Career Development Quarterly,60(2), pp.178-190. Ogunleye, A.J., 2012. Self esteem and achievement motivation: Behavioral traits for entrepreneurship, business and economic growth and development.Research Journal in Organizational Psychology and Educational Studies (RJOPES),1(3), p.145. Omorede, A., Thorgren, S. and Wincent, J., 2015. Entrepreneurship psychology: a review.International Entrepreneurship and Management Journal,11(4), pp.743-768. Rimmer, M., 2014. Tesla Motors: Intellectual Property, Open Innovation, and the Carbon Crisis.The Australian National University College of Law, Canberra. Smart, A., 2012.Petty capitalists and globalization: flexibility, entrepreneurship, and economic development. SUNY Press. Soriano, D.R. and Huarng, K.H., 2013. Innovation and entrepreneurship in knowledge industries.Journal of Business Research,66(10), pp.1964-1969. Todorovic, Z.W., Todorovic, D. and Ma, J., 2015. Corporate Entrepreneurship and Entrepreneurial Orientation in Corporate Environment: A Discussion.Academy of Entrepreneurship Journal,21(1), p.82. Trop, J. and Cardwell, D., 2014. Tesla Plans $5 Billion Battery Factory for Mass-Market Electric Car.NY Times. Yang, D., Eesley, C.E., Tian, X. and Roberts, E.B., 2014. Institutional Flexibility and Entrepreneurship.Available at SSRN 1884493.

Assignment 3 A Problem Exists Essay

Assignment 3 A Problem Exists Essay Assignment 3 A Problem Exists Essay A Problem Exists: Without Childhood Vaccinations Should Children Be Banned From Public Schools English 215 Childhood Vaccinations Any child who has not had their vaccinations should be banned from starting public school. Beginning school should just not be an option. Other families that have their children vaccinated should not have to worry about their children and the possibilities of them catching and/or carrying germs and diseases home, putting their siblings and families in jeopardy. Immunizations are required for a reason and that is to prevent childhood diseases. Many parents are against vaccinations for various reasons. The reasons range from the pharmaceutical companies benefiting from the vaccine more than the children, vaccines being underestimated and overestimating the adverse reactions to the diseases, religious reasons, and faulting autism because of the vaccines. I understand their concern for their child but they should also be concerned with other children and their families. The first formal vaccine developed for the prevention of disease was used by Edward Jenner for smallpox. Jenner first became aware of the protective effects of cowpox from the story of a local dairymaid who had been exposed to the disease. After years of study and observation, he became convinced of the story's validity. In 1796, he immunized an eight-year-old boy with material from a cowpox lesion. No ill effects were seen. Further immunizations supported the theory that cowpox protected against smallpox. Jenner called this material variolae vaccinae. Richard Dunning, a Plymouth physician, in an 1800 analysis of the procedure, was the first to use the term "vaccination." Since the first use of the vaccination by Jenner was for the smallpox, immunization techniques have developed for the protection against most infectious diseases and illnesses. With the nineteenth century improvements in public health measures, combined with the passage of laws for compulsory vaccination, resulted in a steady decrease in the number of smallpox cases in the United States an d most countries of Europe. Even as late as 1930, however, approximately 49,000 cases were reported in the United States. In the 1950's, large numbers of cases were still being reported in areas of Africa and Asia. At that time, the World Health Organization (WHO) of the United Nations decided on a plan for the elimination of smallpox based on the fact that humans served as the sole reservoir for the smallpox virus. In 1978 the World Health Organization (WHO) declared that the world was free of smallpox. However, the principle of immunization in prevention did not originate with Edward Jenner, the English physician credited with development of the smallpox vaccine in the 1790's. A practice called variolation was well known in China and parts of the Middle East for centuries prior to Jenner. Variolation consisted of the inhalation of dried crust prepared from the pocks obtained from individuals suffering from mild cases of smallpox. A variation involved removing small amounts of flu id from an active smallpox pustule and scratching the liquid into the skin of children. Lady Mary Wortley Montagu, wife of the British ambassador to the Ottoman Empire, introduced the practice of variolation into Great Britain during the early eighteenth century. Use of variolation was empirical: The practice was often successful. The possibility remained, however, that immunization might actually introduce the disease (Magill's Medical Guide, 2008). Community immunity is an important concept in immunization science and policy. Unimmunized persons are protected- indirectly- against some infectious diseases by being surrounded by immunized persons. This is known as community (or â€Å"herd†) immunity. (W.B. Saunders Company, 2004). Unvaccinated children are not only at greater risk of catching vaccine-preventable diseases but they can affect

Civil Rights Diary Essays - James Meredith, Free Essays, Term Papers

Civil Rights Diary Essays - James Meredith, Free Essays, Term Papers Civil Rights Diary Victoria Mullally HIS/145 September 14, 2015 Jennifer Moore Civil Rights Diary Sweet Ole Miss The University of Mississippi is home of the Rebels and the white man. Here at Ole Miss we gain a quality education among students who we have things in common with. I cant believe all the hostility about segregation and desegregation. I sure am glad we dont have to worry here at the university. It is peaceful and a great institution of higher education. I dont know how I would handle all that fighting and hostility if an African American wanted to join our campus. Rumor Has It I just heard that an African American student has tried to apply to become a student here at the University of Mississippi. I guess I spoke too soon when I thought it was going to be another peaceful year here at Ole Miss. I wish I knew more about who it was trying to get in. I feel like if they try too hard people here are going to push back with a vengeance. No one seems happy about this student trying to get in. I guess I plan to stay out of the violence. I dont care much for people getting angry about something we have no control over (it just seems silly). James Meredith Come to find out the guy who applied was James Meredith. He was in school before, but I guess he is some kind of civil rights activist so he wants to attend school here. I heard he even obtained a court order from Supreme Court Justice Hugo Black enjoining the university to admit him (Moss & Thomas, 2013, "Let Freedom Ring"). After I found out the governor stepped in and still told the university not to admit him! This is going to turn violent real quick. People here at the university are in an up roar and experiencing a whirlwind of emotions. I dont know if I should panic, riot, or just stick to my studies. I really would prefer if this situation wouldnt escalate. The way it seems to be going, though, I might have no choice in the matter. Wouldnt You Know It You know I figured something fishy was going on here. I remember learning about the Brown V. Board of Education case and how it effectively was supposed to end segregation in the public school system. I had heard many African Americans were getting into white colleges all over. As luck would have it I found out James Meredith according to History.com Staff (2010), applied repeatedly to Ole Miss without success (para. 3) in the two years he attended college at Jackson State College. According to National Portrait Gallery (2012), The university rejected his application twice, and it would take a year and a half and the force of the United States Supreme Court for Meredith to be admitted. (para. 6). Thats why he had a court order to be allowed to attend; he was already fighting the system long before we heard about it. I cant believe how hard he is trying to prove he is worthy of an education here. I mean I dont know him personally but he must be very passionate to work so hard to achie ve something that could potentially hurt him. People still dont know what is going to happen when he steps foot on campus for the first time. I sure hope he gets the chance to sign up for classes, he deserves it after the effort he has put in. Violence Ensued Only naturally would it have to end in violence. When James Meredith tried to show up on campus he had federal government protection! This did not make very many people on campus happy. There was a huge mob out there to meet them. I wasnt getting involved; I know how violent situations can escalate. Boy did I ever make the right choice. Two people ended up shot! This is crazy, how can people be so judgmental. All James wants is to attend classes. After those deaths and so many injuries the government sent in marshals and troops to clean up the mess. Ive never seen so many troops in one place at one time. Alls Well According to University of Mississippi (n.d.), The

Napoleons Methods of Domination Essay Example | Topics and Well Written Essays - 500 words

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Landmarks in Music Essay Example | Topics and Well Written Essays - 1000 words

Landmarks in Music - Essay Example Music is an expressive type of art form, which can be used to express our emotions, talents and our imagination. Music has evolved over time to its current modern day renditions, but if we are to select the most important pieces, to place in a time capsule, then I would have to select music from the baroque and classical periods. Music from Baroque and Classic periods forms a basis in a critical part of our history when we began to view music in a different light. During these periods, music became more of an art form, than just passive entertainment. Here are the 6 most important songs from the both periods and why they qualify to be put in the time capsule. Baroque music was composed with the intention of arousing the emotions of listeners. This era of music lasted for 150 years, between the years 1600-1750 (Schulenbert, 2001). This stage of musical development saw the emergence of non-religious vocal music, orchestral music and operas. Composers from this period, often faced many financial challenges, and most of them could only earn a living from music if they were under the patronage of a religious institution or a political figure. This patronage would then dictate the content of their compositions, but none the less composers were still able to come up with very memorable and time honored compositions. Baroque period compositions can be broken down into two distinct groups: vocal (opera, oratorio and cantata) and instrumental (sonata, concerto and suite). My pick for the most influential songs from the baroque period are: The Four Seasons: Spring url: http://www.rhapsody.com/artist/sofia-chamber-orchestra/album/antonio-vivaldi-the- four-seasons By: Antonio Vivaldi Four Seasons, as a whole, is often considered the boldest or bravest of program music from the Baroque era. Each concerto is comprised of three distinct movements; one middle movement in a slow tempo and too fast outer movements. Antonio Vivaldi wrote the sonnets, to denote the movements of the four seasons (Schulenbert, 2001). It is also has a great influence in the era as early concertos did not have a standard form, but the success of Vivaldi’s â€Å"Four Seasons† led other composers to mimic his style over time, which led a standard form used to play concertos. Of the four movements, winter is the most technically complicated and also more accurate in depicting nature like imitations of nature, the very inspiration of the sound. It is also very solid even if you break it down into several parts. Each part is creates its own dissonance that may be adapted and reinterpreted as a separate sound. Messiah: The Overture url: http://www.rh apsody.com/artist/george-frideric-handel/album/handels-messiah by: Handel This oratorio was originally intended as a thought provoking work for eastern and lent, but due to its popularity, later became a common part of Christmas festivities that has lasted over many generations. George Frederic Handel, a German born composer, was gifted in playing music from an early age. Handel’s â€Å"Messiah† employs a unique technique dubbed text painting. This technique tries to mimic the lines of the text, to the musical notes (Schulenbert, 2001). â€Å"Messiah† is broken down into three parts, which follows the meaning of the text while still maintaining its opera-like qualities. Handel’s â€Å"Messiah† helped to popularize the oratorio; a musical form that highlighted the performance of solo artists. The Overtures one of only two movements that is purely instrumental. By Handel’s time, the overture was a common, if not standard opening, of an opera a nd was actually meant to welcome the king in an opera. Handel, however, made this one considerably darker by playing it in E minor. It helped assist in the desperate need of the world for a Messiah. Six Suites for Unaccompanied Cello: Suite No. 1 url: http://www.rhapsody.com/search?query=Six+Suites+of+Unaccompanied+Cello by: Johann Sebastian Bach These suites were based on a set of instrumental compositions, which were similar

A Definition of Corporate Social Responsibility

A Definition of Corporate Social Responsibility Nowadays, the association of the words social and responsibility has become increasingly frequent. But in business world, there is another variant of these terms that prevail and it is the term Corporate Social responsibility (CSR). According to Archie Carroll (2008 p.19): though the roots of the concepts that we know today as CSR have been a long and wide-ranging history, it is mostly a product of the twentieth century, especially from the early 1950s up to the present time. Despite the fact that the concept of CSR has been present for such a long time, researchers still do not share a common definition or set of core principles (Andre Crane et al. 2008 p.4). This also brought about other questions on the interpretation of terms as being socially responsible and also is a firm capable of being responsible towards society. According to Wood (1991, cited in Moir, 1991, p.2), the basic idea of corporate social responsibility is that business and society are interwoven rather than distinct entities. Businesses are often assumed to have profit maximization for sole aim and ignore its responsibilities towards society. Milton Friedman (1970) said that the only one responsibility of business towards society is the maximization of profits to the shareholders within the legal framework and the ethical custom of the country. However supporters of CSR can also be found, Dave Packard (Co-founder of Hewlett Packard Company in 1939, cited in Harvard Business Review, 2002, p.54) claims that the assumption that people make of companies only making money is wrong. He also adds that: a group of people get together and exist as an institution that is called a company so that they are able to accomplish something collectively that they could not accomplish separately and simultaneously they make a contribution to society (Dave Packard, 1939). Votaw (cited in Garigga and Mele, 2004, p.51) wrote that corporate social responsibility means something, but not always the same thing to everybody. The diverging opinions can be categorized in two main points of view; one is that CSR is yet another means to maximize profit and the other is that CSR is here to help companies help society as a whole. CSR has been described in a number of various ways. Below are given different definitions of CSR: Corporate Social Responsibility is a commitment to improve community well-being through discretionary business practices and corporate resources. (Philip Kotler and Nancy Lee, Corporate Social Responsibility, Wiley, 2007) The social responsibility of business encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time. (Archie B. Carroll, 1979) Shell: We all need to assess the impact our business makes on society and ensure that we balance the economic, environmental and social aspects of everything we do (Moody-Stuart, 1999). The diagram below gives a visual description of what constitute CSR: Source: www6.miami.edu/ethics/pdf_files/csr_guide.pdf According to Lance Moir (2001), the area defined by advocates of CSR increasingly covers a wide range of issues such as plant closures, employee relations, human rights, corporate ethics, community relations and the environment. Aspects of CSR Drivers of CSR Drivers, in this context, refer to the reasons behind the choice of a firm to adopt a more socially acceptable behaviour. These reasons can be classified as being internal and external to the firm. Internal drivers: Internal drivers are the pressures that originate from the internal environment of the firm. Examples of components that can constitute the internal environment of a firm are, employees, suppliers, competitors, top management, etc. Flatter organisations have considerably changed the approach towards how business was once done. Nowadays, employees put pressure on how the organization conducts business using certain societal values (M.G.V. Dongen, 2006 p.9). They are more attracted by the non-material aspects of the organisation that employs them. Besides, employees seeking a more socially responsible firm, managers now have the task to reconcile the profit-making need of the company with the responsibility towards society. But as Haigh and Jones (2006) mentioned, for business managers, business is first. ODwyer (2003, cited in Haigh and Jones, 2006, p.2) said that social considerations come second and providing only that such considerations would not open an exploitable weakness. Haig h (2006) adds that the paradigm that managers face simply prevents overall improvements consistent with social welfare. The capacity to integrate CSR policies in the core activities of the firm can also act as a driver. According to Porter and van der Linde (2000, cited in Haigh and Jones, 2006, p.2), CSR is competitive driver that requires appropriate resources. Integrating CSR in a companys activities can be a tedious process. The diagram below shows how CSR can be incorporated at different levels of the company. Source: MVO Platform, (2002, illustrated in M.G.V. Dongen, 2006 p.10), Different intensities of CSR CSR can also be undertaken in a set of separate activities geared towards improving social welfare. This can take the form of sponsoring of sports activities or engaging in charitable activities. Another view to consider internal drivers to CSR is to consider them to be national drivers. The table below gives a number of different national CSR drivers and a brief description of each of them. Source: Visser, W. (2008) CSR Drivers: The Forces Shaping Corporate Sustainability and Responsibility, CSR Inspiration Series, No. 3. External drivers: External drives refer to the external pressures that compel a firm to engage in CSR. The external environment of a firm can include market structure, customers, government, economic situations, competitors, etc. Businesses no longer evolve in a static environment, threats are no longer limited to local competitors and the market is now a global one. Similarly, adopting the culture of foreign firms has become a must and CSR is one of the main concerns of all firms in this century. Castells (2000, as cited in M.G.V. Dongen, 2006 p.7) says that globalization increases the importance of social networks of a company on a worldwide basis. Moreover, consumers are more concerned by the fact that whether the firm, to which they are loyal, is contributing to societys welfare. As Castells (2000, as cited in M.G.V. Dongen, 2006 p.7) mentions, a lot of information is obtained more rapidly by consumers and it is easier to keep in touch with the various activities undertaken by any firm. The govern ment also contributes in making company conscious of their duties towards society. According to the European Union and MVO Platform (2002, as cited in M.G.V. Dongen, 2006 p.7), Governments are now engaging in the role of stimulating companies to be social responsible, not pressuring them. In M.G.V. Dongens 2006 paper: In search of the link between corporate social responsibility and legitimacy she enumerated a number of external factors that encouraged firm to adopt the concept of CSR. A few of these points are: Transparency. A very important aspect for a company to be socially responsible is transparency. This can be included in the profit-factor but is more and more considered as a prerequisite for a company to be socially responsible. Due to new information sources, e.g. the internet, and the shift in the control mechanisms for organizations from purely governmental to include the organizations stakeholders, this revolution has an enormous impact on the visibility of an organizations business practices.(M.G.V. Dongen, 2006 p.8) Time. A shift can be recognized from purely focusing on short-term profits towards more long-term objectives, which is necessary because societal and environmental issues are mostly long-term issues. Therefore this shift in time-thinking is essential for CSR to be successful. (M.G.V. Dongen, 2006 p.8) Here also, external factors are often associated with international drivers. The table below describes some of them: Source: Visser, W. (2008) CSR Drivers: The Forces Shaping Corporate Sustainability and Responsibility, CSR Inspiration Series, No. 3. In order to link both national and international drivers the diagram below visually establishes a link between both of them. Source: Visser, W. (2008) CSR Drivers: The Forces Shaping Corporate Sustainability and Responsibility, CSR Inspiration Series, No. 3. 3.2 Theories of CSR Many authors have tried to grasp an accurate idea of what is CSR by devising models in order to better understand the various factors involved and their impact. One of the first approaches to tackle CSR by means of a model was made in 1971 by the Committee for Economic Development (CED). It made use of three concentric circles. The definition of the three circles was given in the Social Responsibilities of Business Corporation (1971) as follows: The inner circle includes, the clear-cut basic responsibilities for the efficient execution of the economic function products, jobs and economic growth The intermediate circle encompasses responsibility to exercise this economic function with a precise awareness of changing social values and priorities: for example with respect to environmental conservation, hiring and relations with employees, and more rigorous expectation of customers for information, fair treatment and protection from injury The outer circle outlines newly emerging and still amorphous responsibilities that business should assume to become more broadly involved in actively improving the social environment After this theory others were developed, but throughout time only a few of them prevailed. The first theory that must be considered is the pyramid of CSR developed by Carroll. The pyramid of corporate social responsibility According to Carroll, the four main components or categories that constitute the CSR pyramid are: Economic Responsibilities, Legal Responsibilities, Ethical Responsibilities and Philanthropic or Discretionary Responsibilities. The two tables below give a description of these four terms. Source: Archie B. Carroll (1991), The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders, Business Horizons Source: Archie B. Carroll (1991), The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders, Business Horizons The theory of the pyramid relies on the fact the various components are stacked on each other, the economic responsibility being the base and the philanthropic responsibility being at the top. The logic behind the pyramid relies in the fact that firms are expected to aim for profit maximization but it must also cater for the other responsibilities in the pyramid, which is comply with the law, comply with rules of society and finally act as a good corporate citizen. The diagram below is a representation of Archie B. Carroll pyramid of Corporate Social Responsibility. The Stakeholder theory Moir (2001) refers to the stakeholder theory as being used used as a basis to analyse those groups to whom the firm should be responsible. For Carroll (1991, cited as cited in M.G.V. Dongen, 2006 p.13), stakeholder concept personifies the social actors that organizations should consider with their CSR orientation. Stakeholders generally refer to the actors who are directly or sometimes indirectly affected by the actions of a company. Freedman defines a stakeholder as any group or individual who can affect or is affected by the achievement of the organizations objectives (Freeman, 1984:46). Stakeholders can be classified in two main categories; primary and secondary stakeholders. Clarkson (1995: 106, cited in L. Moir, 2001, p.8) gives the description of a primary stakeholder as one without whose continuing participation the corporation cannot survive as a going concern with the primary group including shareholders and investors, employees, customers and suppliers, together with what is defined as the public stakeholder group: the governments and communities that provide infrastructures and markets, whose laws and regulations must be obeyed, and to whom taxes and obligations may be due (Clarkson, 1995, p.106). Moir (2001, p.8) defines the secondary groups are defined as Those who influence or affect, or are influenced or affected by the corporation, but they are not engaged in transactions with the corporation and are not essential for its survival Source: Monique G. van Dongen (2006), In search of the link between corporate social responsibility and legitimacy The stakeholder theory focuses on a practical approach that explains an organizations need to address the various responsibilities (Dongen 2006, p. 13). The stakeholder theory relies on determining the most important stakeholder for the company and its responsibilities towards that stakeholder. In order to determine how the choice should be made, Carroll (1991) established two main criteria which are; power and legitimacy. Following Carrolls logic, in 1997, Michel et al develop a more detailed approach which includes a new dimension named urgency. The model develop was the the stakeholder salience model Power: the ability of those who possess power, to bring about the outcome that they desire (Mitchell et al., 1997). Legitimacy: the assumption that the actions of an entity are desirable, proper, or appropriate within some socially constructed systems of norms, values, beliefs, and definitions (Suchman, 1995). Urgency: exists when two conditions are met: 1) when it is time-sensitive, and 2) when it is important or critical to the stakeholder (Mitchell et al., 1997). The salience model helps to divide stakeholders in different groups and each of these groups is classified on the basis of having one or more the above characteristics. Mitchell (1997) defined the salience model as the degree to which managers gave importance to stakeholders claims. From this point of view, groups such as latent and expectant stakeholders were created and these groups were further subdivided on the basis of the number of characteristics they possessed. Moir stated that firms would pay most attention to those legitimate stakeholder groups who have power and urgency (Moir, 2001, p.9). Following this logic, an example could be the reputation of a company will have a great importance when it interacts directly with the public. In relation with CSR, Patten (1992 as cited in L Moir, 2006 p.9) gave the following example concerning the possible fluctuations in the level of urgency: environmental groups and issues became more urgent to oil firms following the Exxon Valdez oil spill. To sum up, stakeholder theory can help companies to point out stakeholders that can be sensible to CSR issues and generate a profit in these circumstances. 3.2.1 Mapping of CSR theories In addition to the above models, numerous other theories have been developed, but none of them gave an accurate framework which exactly defined what CSR was. Each and every writer who tried to build up a CSR theory ended up giving a personal opinion, hence creating confusion. Carroll (1994, p.14) described the situation as An eclectic field with loose boundaries, multiple memberships, and differing training/perspectives; broadly rather than focused, multidisciplinary; wide breadth; brings in a wider range of literature; and interdisciplinary. In addition to the above mentioned theories, Frederick (1987, 1998) tried to classify CSR in four main categories namely CSR1, CSR2, CSR3 and CSR4. Other attempts to define theories can take the form of the concept of corporate citizenship by Altman (1998), Issues Management by Wartick and Rude (1986) and Wood (1991) and Brummer (1991) classification of four CSR theories based on six criteria. In order to harmonize all these different models Elisabet Garriga and Domenec Mele (2004) grouped all the actual theories under four main headings namely; instrumental, political, integrative and ethical theories. Theories were placed in a group on the basis of their similitude, for example instrumental theories grouped models that were based on the assumption that organization are here only to make profits. The table below gives a brief summary of each group and the different theories composing them. Source: Elisabet Garriga and Domenec Mele (2004), Corporate Social Responsibility Theories: Mapping the Territory, p.62-63 3.3 Advantages and Disadvantages of engaging in CSR CSR is often view as a companys intention to do good for society, but there can also be times when behind the socially responsible mask the intentions are not the ones expected. In can be quite contradictory but although CSR is assumed to be good, it can have drawbacks. Advantages and disadvantages arising from CSR are as diverse as the domain in which the practices are applied, for analysis purposes standard or most common pros and cons will be considered. First pros or advantages of CSR will be considered. According to Bhattacharya et al. (2008), the first advantage of CSR is that in helps in the recruitment and selection process and more specifically within the competitive graduate student market. Kytle et al. (2005) continue by adding that CSR helps in risk management. Building a genuine culture of doing the right thing within a corporation can offset the risks of losing reputation because of any scandal or environmental accident (Kytle et al, 2005, p.10). Another benefit atributed to CSR is brand differenciation. Paluszek (2005) says that CSR can play a role in building customer loyalty based on distinctive ethical values. CSR can help in building customer loyalty by helping them feel that the company with which they are involved care for them. It must also be added that CSR has a significant impact on customers as well. According to Berger et al. (1995, cited in Maignan and Ferrell, 2004) consumers show more fervent support to companies committed to cause-related marketing, practices that help the environment, or business ethics. Furthermore, the studies conducted by Lichtenstein et al., (2004) proved that CSR helped to develop an emotional attachment with the company and hence it helped in boosting the percentage of sales. Sen et al., (2006) continued by saying that those conscious of actual corporate social activities had more positive responses to, and stronger identification with, the organisation, increased demand for trade and investment intent and demand to get a job with this type of organisation than those unaware of any initiative. In addition to the above advantages, others were published in the Investment News (2007) and they are listed below; Proactive enforcement of stricter quality and environmental controls reduces the risk of negative events (e.g. recalling defective products or fines for excessive polluting). Commitment to CSR increases the ability to attract and retain employees. Benefits include reduced turnover, recruitment and training costs. CSR practices enable corporations to be compliant on ethical issues and attract investors who enforce ethical filters One of the main disadvantages of CSR arises from the misuse of the initial concept behind it. Businesses are here to maximise profits and CSR is in direct conflict with this goal. As Malloy (2003) described corporations exist to provide products and/or services that produce profits for their shareholders. Another disadvantage attributed to CSR, is too use it as a marketing tool to promote the companys image. CSR can help companies to be more profitable. This can be proved by the action taken by British petroleum after the discovery of the global warming phenomenon and the promise to have a world beyond petroleum. Here also the investment News 2007 came with a list of arguments against CSR: Expenditure on CSR dilutes the funds available for shareholders. Corporate Management is not equipped to address social or environmental problems. Expenditure on CSR imposes additional costs which consequently reduce competitiveness Expenditure on CSR can only be made during periods of high profitability 4.0 Customer satisfaction According to marketing literature, higher customer satisfaction improves financial performance by increasing the loyalty of existing customers, reducing price elasticities, lowering marketing costs through positive word-of-mouth advertising, reducing transaction costs, and enhancing firm reputation (e.g., Anderson, Fornell, and Lehmann (1994), Fornell (1992), and Reichheld and Sasser (1990)). Many believe that customer satisfaction is the key to a business success. The advantages to the fact of obtaining satisfaction from customers are various but before considering all of them in details, a definition of the term must be given. Customer satisfactions definition varies in accordance to the domain in which it is used. For instance it will have a different meaning whether it is used in marketing literature or in other sectors. A definition of customer satisfaction from a service management point of view is that customer satisfaction refers to how the perception of the customer affects the value received in a transaction or relationship where value can be defined as the perceived service quality compared to price and customer incurred acquisition costs (cited in Blanchard and Galloway, 1994; Heskett et al., 1990) in comparison to the expected value to be generated from transactions or relationships with competitors (Zeithaml et al., 1990). From the marketing point of view customer satisfaction will be defined as a vital part of the strategy of an organization (Fornell et al. 2006) and a key driver of increased profits on the long-run and boosting market value (Gruca and Rego 2005). Link between CSR and Customer satisfaction A number of studies link customers directly to CSR initiatives. In order to undertake a proper analysis, at least three major dimensions can be considered. The first being Scotts (1987 cited in Luo and Bhattacharya, 2006 p.3) institutional theory and the second stakeholder theory (Maignan, Ferrell, and Ferrell 2005) suggest that a companys actions appeal to the multidimensionality of the consumer as not only an economic being but also a member of a family, community, and country (Handelman and Arnold 1999). Basing themselves on these three approaches Daub and Ergenzinger (2005) developed the term generalized customer. It can be defined as people who are not only customers who care about the consumption experience but also actual or potential members of various stakeholder groups that companies need to consider (Daub and Ergenzinger, 2005; Luo and Bhattacharya, 2006, p.3). Generalized customers derive more satisfaction from the transaction which involves a firm which is socially respo nsible. The second dimension rely on the aspect that establishing the link between the two components is the fact that being highly active in the CSR domain creates a favorable context that positively boosts consumers evaluations of and it gives a favorable image of the firm (Brown and Dacin 1997; Gà ¼rhan- Canli and Batra 2004; Sen and Bhattacharya 2001). Handleman and Arnold (1999) noted that consumers used the concept of positive word to mouth about firms that were committed to actions that were associated with institutional norms (1999, cited in Maignan and Ferrell, 2004). Studies by Berger and Kanetkar (1995), Barone et al. (2000) and Creyer and Ross (1997) resulted in the fact that consumers are willing to actively support companies committed to cause-related marketing, environmentally-friendly practices, or ethics (cited in Maignan and Ferrell, 2004). CSR initiatives constitute a key element of corporate identity that can induce customers to identify with the company. Indeed, Lichten stein, Drumwright, and Bridgette (2004, p. 17) note that a way that CSR initiatives create benefits for companies appears to be by increasing consumers identification with the corporation à ¢Ã¢â€š ¬Ã‚ ¦ [and] support for the company. Not surprisingly, identified customers are more likely to be satisfied with a firms offerings (e.g., Bhattacharya, Rao, and Glynn 1995; Bhattacharya and Sen 2003). The third dimension examines the antecedents of customer satisfaction (Luo and Bhattacharya, 2006, p.3). One example of a key antecedent can be perceived value and that has been empirically shown to promote customer satisfaction (Fornell et al. 1996; Mithas, Krishnan, and Fornell 2005b; Luo and Bhattacharya, 2006). In the actual case, all else being equal, customers likely derive better perceived value and, consequently, higher satisfaction from a product that is made by a socially responsible company (Luo and Bhattacharya, 2006, p.4).Another antecedents that is known to impact on customer satisfaction is the knowledge of the customer himself. Jayachandran et al (2005) added that improving customer knowledge represents another antecedent that has been found to enhance customer satisfaction. Although the three dimensions above establish a link between CSR and customer Satisfaction it does not indicate whether it is a positive or a negative one. Mac Donald and Rundle-Thiele (2008) pointed out that researchers have studied the impact of CSR on a number of factors, including word of mouth, attitudes, intentions, emotional attachment, shopping in-store, loyalty and brand identification, a limited number of studies have taken into consideration the relationship between satisfaction and CSR (Mac Donald and Rundle-Thiele, 2008, p.174). The only study that directly linked CSR to customer satisfaction was that carried out by Luo and Bhattacharya (2006). They studied Fortune 500 companies, to find that a direct relation between CSR and customer satisfaction existed. Their study identified that satisfaction as a link which formed a relationship between CSR and firm market value (Mac Donald and Rundle-Thiele, 2008, p.174). The diagram below depicts the relationship between customer satisfaction, market share and CSR as studied by Luo and Bhattacharya. Source: Xueming Luo C.B. Bhattacharya, 2006, Corporate Social Responsibility, Customer Satisfaction, and Market Value Despite the direct linking, researchers found cases where CSR was found to have a negative impact on customer satisfaction. Bhattacharya and Luo (2006, cited in Mac Donald and Rundle-Thiele, 2008, p.174) found that, firms which tend to lag in the innovative process, CSR actually reduced the level of customer satisfaction and, through a reduced amount of satisfaction; it adversely affected the market value. In some cases, it may be found that it is more appropriate to use customer oriented initiatives to increase satisfaction than CSR initiatives. CSR initiatives in this case could lead to wastage of precious resources which could have been used in a better way. CSR initiatives against Customer-oriented initiatives Pomering and Dolnicar (2006, cited in Mac Donald and Rundle-Thiele, 2008, p.174) studied that a banks CSR initiatives indicated that customers tend to be more responsive to customer-oriented initiatives, rather than those that had a social orientation. In this study, eight CSR initiatives were proposed such as dedicating one per cent of profit to community programs and launching an indigenous scholarship program. The success of these initiatives did not match the level of satisfaction obtained from customer-oriented initiatives. Pomering and Dolnicar (2006) concluded that consumers consideration for personal well-being may outweigh their consideration of broader social impacts. 4.2.1 CSR initiatives and Customer satisfaction In 2004, Bhattacharya and Sen (2004, cited in Mac Donald and Rundle-Thiele, 2008, p.175) proposed six dimensions to CSR. They are listed below, as published by KLD Research: employee diversity Supporting employees product impact on the environment overseas operations Supporting society 4.2.2 Customer oriented initiatives and customer satisfaction On the other hand, customer-oriented initiatives for the banking sector were also classified. Chakrabarty (2006) observed that customer oriented actions for the banking sector was not the same as for other sectors. Chakrabartys (2006, cited in Mac Donald and Rundle-Thiele, 2008, p.175) research resulted into four factors that determined the total level of customer satisfaction amongst a sample of more than 12,000 UK retail banking customers. They are listed in order of importance as follows: in-branch satisfaction economic satisfaction remote satisfaction ATM satisfaction Later in 2007, Manrai and Manrai (2007, in Mac Donald and Rundle-Thiele, 2008, p.175) came up with another set of four factors. In order of importance, they are: Problems attributed to the personnel Concerns of a financial aspect Concerns about the in-branch environment Convenience-related considerations