Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010, 2009 and 2008 is conducted and evaluated its respective ratios and other financial data.The peer comparison of financial ratios between RHB Bank & Hong Leong Bank is evaluated and analysed to see which bank performs better in 2010. The other key ratios are also calculated in for deep analysis on to see how well these two banks in Malaysia perform in 2010. In addition, its credit risk that includes the risk management and its policy of both banks is then evaluated and compared to see which bank manages its credit risk properly.Fi nally, this report provides an overview of the performance of both RHB Bank and Hong Leong Bank for the financial year ended in 2010 and conclude which bank perform better in terms of various financial ration and management of credit risk. II II Assignment 1 Part A: Bank Performance Question 1: Dupont Model: a. Dopont Model: The DuPont model analysis is a common form of financial statement analysis and this model provides information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the firm as a result of changes in one or more of these actors (Milbourn & Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to determine the strength and weakness of the firm. It is also a very powerful financial tool to assist financial analyst, shareholders, investors and bankers in understanding the profitability of the firm and a tool that evaluate the firm’s financial statements by comparing the relationships within the income statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the return of equity (ROE).The ROE is a strong measure on how well the management of the bank creates value to the shareholders (Pinsent, 2010). It is also a good starting point in the analysis of a bank’s financial condition. ROE is calculated by dividing the net income by total equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net incomeEquity According to Gup et at, (2007), the ROE ratio is equal to the Return of Assets (ROA) ratio times the Leverage multiplier that shows the dollar amount of assets that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net IncomeEquity = Net IncomeTotal Assets x Total AssetsEquity Leverage multiplier shows the extent to which the b ank relies on debt financing. The higher the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= Total AssetsEquity The Return of Assets (ROA) measures the bank profits as a percent of its assets and also measures the ability of the firm to use the real financial resources of the bank to generate revenue. It is commonly used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing net income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into another equation: Net IncomeTotal Assets = RevenueTotal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the following: ROA=Asset Utilisation x Net Profit Margin The net margin ratio shows how much profit the bank makes for every $ 1. 00 it generates from the revenue. Generally, the higher the ratio, the better the net margin. In order to obtain more revenue, most banks will want to reduce the net income to achieve a hig her net margin ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the amount of income the bank generated for every dollar worth of the assets available. This shows the bank’s efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to increase the ROE, banks need to increase their credit risk; this can be done by providing more loans to customers and subsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis: * It is based on accounting numbers, which are basically not reliable. * it does not include the Cost of Capital. * Garbage in, garbage out. Assumptions of the DuPont method: * Accounting numbers are reliable. b. Dopont Model Analysis: i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010): Hong Leong Bank’s data: | 201 0| 2009| 2008| | RM’000| RM’000| RM’000| Revenue| | | | Interest income| 2,592,586| 2,937,002| 3,064,785| Non-interest income| 506,979| 511,537| 501,067| Total| 3,099,565| 3,448,539| 3,565,852| | | | | Operating costs| | | |Interest expense| 1,209,792| 1,579,883| 1,688,293| Non-interest expense| 831,139| 806,030| 786,194| Total| 2,040,931| 2,385,913| 2,474,487| | | | | Net profit| 767,817| 659,678| 838,874| Total assets| 77,730,208| 70,732,513| 69,992,756| Equity| 5,815,063| 5,319,288| 4,923,133| RHB Bank’s Data | 2010| | RM’000| Revenue| | Interest income| 4,530,637| Non-interest income| 722,818| Total| 5,253,455| Operating Cost| | Interest Expense| 1,811,153| Non-interest Expense| 1,302,007| Total| 3,113,160| | | Net profit| 1,294,437| Total assets| 105,179,231| Equity| 8,397,474| Dupont Model of Hong Leong Bank 2010| 2009| 2008| Return On Equity: Net incomeEquity| RM767,817,000RM5,815,063,000= 13. 20%| RM659,678,000RM5,319,288,000= 12. 40%| RM83 8,874,000RM4,923,133,000= 17. 04%| Leverage Multiplier:Total AssetsEquity| RM77,730,208,000RM5,815,063,000=13. 37times| RM70,732,513,000RM5,319,288,000= 13. 30times| RM69,992,756,000RM4,923,133,000= 14. 22times| Return On Assets:Net IncomeTotal Assets| RM767,817,000RM77,730,208,000= 0. 99%| RM659,678,000RM70,732,513,000= 0. 93%| RM838,874,000RM69,992,756,000= 1. 20%| Asset Utilization:RevenueTotal Assets| RM3,099,565,000RM77,730,208,000= 3. 9%| RM3,448,539,000RM70,732,513,000= 4. 88%| RM3,565,852,000RM69,992,756,000= 5. 10%| Net margin:Net incomerevenue| RM767,817,000RM3,099,565,000= 24. 77%| RM659,678,000RM3,448,539,000= 19. 13%| RM838,874,000RM3,565,852,000= 23. 53%| Dupont Model of RHB Bank | 2010| Return On Equity: Net incomeEquity| RM1,294,437,000RM8,397,474,000=15. 41%|Leverage Multiplier:Total AssetsEquity| RM105,179,231,000RM8,397,474,000=12. 53times| Return On Assets:Net IncomeTotal Assets| RM1,294,437,000RM105,179,231,000=1. 23%| Asset Utilization:RevenueTotal Assets| RM5, 253,455,000RM105,179,231,000=4. 9%| Net margin:Net incomerevenue| RM1,294,437,000RM5,253,455,000=24. 64%| c. Analysis and Discussion: Trend comparison of Hong Leong Bank Ratio| 2010| 2009| 2008| Net margin| 24. 77%| 19. 13%| 23. 53%| Asset utilisation| 3. 99%| 4. 88%| 5. 10%| Return on assets| 0. 99%| 0. 93%| 1. 20%| Leverage multiplier| 13. 37times| 13. 30times| 14. 22times| Return on equity| 13. 20%| 12. 40%| 17. 04%| Hong Leong Bank’s net margin is higher in year 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It means that operating costs are relatively lower in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong Bank in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that increased its profitability. Hong Leon g Bank’s asset utilisation is lower in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It decreased constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Bank’s return on assets is lower in year 2010 (0. 99%) compared to the year 2009 (0. 93%) and 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Bank’s leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and increased back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more risk in 2008 compared to year 2010. Hong Leong Bank’s return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and therefore the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio| Hong Leong Bank| RHB Bank| Net margin| 24. 77%| 24. 64%| Asset utilisation| 3. 99%| 4. 99%| Return on assets| 0. 99%| 1. 23%| Leverage multiplier| 13. 37times| 12. 53times| Return on equity| 13. 20%| 15. 41%| Hong Leong Bank’s net margin (24. 77%) is higher than RHB Bank’s (24. 64%). It means that RHB Bank’s operating costs are relatively hig her. RHB Bank’s operating costs are RM3,113,160,000 whereas Hong Leong Bank’s operating costs are RM2,040,931,000.Thus, RHB Bank’s operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Bank’s asset utilisation (4. 99%) is higher than Hong Leong Bank’s (3. 99%). This shows that RHB Bank used most effectively of its assets to generate more revenue than Hong Leong Bank. RHB Bank’s revenue is RM5,253,455,000 which is higher than Hong Leong Bank’s revenue which is RM3,099,565,000. Hong Leong Bank’s return on assets is 0. 99% which is slightly lower than RHB Bank’s return on assets which is 1. 23%.This can be implied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB B ank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Bank’s total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Bank’s leverage multiplier (13. 7times) is higher than RHB Bank’s (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more risk than RHB Bank. Hong Leong Bank’s return on equity is 13. 20% which is lower than RHB Bank’s 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and stay with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the overall financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Bank’s objectives and strategies are different from RHB Bank’s. Question 2: Hong Leong Bank’s data of 2010 Interest earning asset 1:| RM’000| Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held-to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093|Other assets| 2,014,821| Total| 60,213,779| | | Earning assets 2:| | Interest Income Assets:| | Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held -to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093| Other assets| 2,014,821| | | Non-Interest Income Assets:| | Investment in subsidiary companies (Note 31) earning dividend| 714,092| Investment in associated company (Note 31) earning dividend| 946,505| Total| 61,874,376| | |Interest sensitive assets 3:| | Cash and short-term funds| 13,421,408| Deposits and placements with banks and other financial institutions| 7,004,664| Available-for-sale securities| 681,619| Held-to-maturity securities| 1,705,674| Loans, advances and financing| 30,712,038| Total| 53,525,403| | | Interest bearing liabilities 4:| | Deposits from customers| 63,239,050| Deposits and placements of banks and other financial institutions| 3,791,129| Bills and acceptances payable| 285,366| Other liabilities| 3,890,295| Total| 71,205,840| | | Interest sensitive liabilities 5:| | Deposits from customers| 54,798,922|Deposits and placements of banks and other financial institutions| 3,784,376| Bil ls and acceptances payable| 25,453| Total| 58,608,751| | | | | Liquid assets 6:| | Cash and short-term funds| 13,928,247| Deposits and placements with banks and other financial institutions| 7,004,664| Loans, advances and financing (Note 8)| 9,057,329| Available for sales securities| 3859367| Total| 33,849,607| | | Deposits | 7,004,664| Shareholders’ fund = Total equity| 5,815,063| | | Net-write offs 7:| 202,219| NOTES: 1 Interest earning asset are assets that earns interest income. (Note 28 of pg113 of Hong. Leong Bank Annual Report 2010) Earning assets Income earning assets held by a bank typically include interest bearing balances, investment securities and loans. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual Report 2010) 3 Interest sensitive assets are the dollar value of assets that either mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay interest. 5 Interest sensitive liabilities are the dollar value of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, marketable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under agreement to resell, a liquid asset can be easily and quickly converted into cash with minimum loss. 7 Net Write Offs is the amount written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual Report 2010) NOTES: 8 Interest Sensitive Assets RM’000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM’000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 RHB Bank’s data of 2010 Interest Earning asset 1:| RM’000| Loans, advances and financ ing| 71,125,558| Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Earning assets 2:| | Loans, advances and financing| 71,125,558|Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Interest sensitive assets 1:| | Cash and short-term funds| 10,270,874| Securities under resale agreement| 276,398| Deposits and placements with banks and other financial institutions| 777,779| Financial investment available-for-sale | 1107052| Held-to-maturity securities| 3833825| Loans, advances and financing| 52741914| Total| 69,007,842| | | Interest bearing liabilities 4:| | Deposits and placements of banks and other financial institutions| 6,158,453| Deposits from customers| 80,567,577| Subordinated obligations| 3,018,157| Recourse obligation on loans sold to Cagamas Berhad| 818,503| Hybrid Tier I Capital Securities| 605,407| Long term borrowings| 819,362| Others liabilities| 868,165| Total | 92,855,624| Interest sensitive liabilities 2:| | Deposits from customers| 63,270,532| Deposits and placements of banks and other financial institutions| 5558376| Bills and acceptances payable| 2934533|Recourse obligation on loans sold to Cagamas Berhad| 147030| Long term borrowings| 817127| Total| 72,727,598| | | | | Liquid assets 3:| | Cash and short-term funds| 11093561| Securities purchased under resale agreements| 276,407| Deposits and placements with banks and other financial institutions| 782,462| Financial assets held-for-trading| 119,374| Financial investment available-for-sale| 1176035| Financial investment held-to-maturity| 3854749| Loans, advances and financing| 14124170| Other assets| 88835| Derivative assets| 190637| Total| 31,706,230| | | Deposits | 1,539,648|Shareholders’ fund = Total equity| 8,397,474| | | Net-write offs 7:| 1,033,573| NOTES: 1, 2, 3 – Please refer to appendix. | Hong Leong BankRM’000| RHB BankRM’000| Interest earning assets| 60,213,779| 89,357,638| Interest bearing liabilities| 71,205,840| 92,855,624| Earning Assets| 61,874,376| 89,357,638| Interest sensitive assets (RSA)| 53,525,403| 69,007,842| Interest sensitive liabilities (RSL)| 58,608,751| 72,727,598| Liquid assets | 33,849,607| 29,990,240| Shareholders’ fund| 5,815,063| 5,815,063| Net-write offs| 202,219| 1,033,573| Operating Income| 3,099,565| 5,253,455|Operating Expense| 2,040,931| 3113160| Other key indicators for the year ended 2010: Bank efficiency| Hong Leong Bank| RHB Bank| Efficiency ratio:Operating expenses Ope rating income| RM2,040,931,000RM3,099,565,000= 65. 85%| RM3,113,160,000RM5,253,455,000= 59. 26%| Cost to assets ratios:Operating expenses Total assets| RM2,040,931,000RM77,730,208,000= 2. 63%| RM3,113,160,000RM105,179,231,000= 2. 96%| Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Bank’s rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more efficient than RHB Bank. Interest differentials| Hong Leong Bank | RHB Bank|Net interest income:Interest earned -Interest expense| RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000| RM4,530,637,000-RM1,811,153,000= RM2,719,484,000| % of interest margin:interest earned – interest expenses Earning assets| RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23%| RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04%| %interest spread(interest earned/interest earning assets) – (interest expense/ interest bearing liabilities)| (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1%| (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12%| Net interest income refers the difference between revenue that is generated from the bank’s assets and expenses associated with paying out its liabilities. In the table above, RHB Bank’s net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after deducting interest paid on deposit from interest earned on assets.Percentage interest margin shows the dollar difference between interests earned and interest expense, as a percentage of earnings assets. Hong Leong Bank’s% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank due to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Bank’s % interest spread is 3. 12% which is higher than Hong Leong Bank’s 2. 23%. Risk management| Hong Leong Bank| RHB Bank|Interest rate riskinterest sensitive assets interest sensitive liabilities| RM53,525,403,000RM58,608,751,000= 0. 91| RM69,007,842,000RM72,727,598,000= 0. 95| Credit risk net write-offs total assets| RM202,219,000RM77,730,208,000= 0. 26%| RM1,033,573,000RM105,179,231,000= 0. 98%| Liquidity risk :liquid assets/total asset liquid assets/deposits| RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83| RM29,990,240,000/RM105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48| Capital risk :shareholders’ funds total assets| RM5,815,063,000RM77,730,208,000= 7. 48%| RM8,397,474,000RM105,179,231,000= 7. 8%| Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the bank’s assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than replacing the low cost deposits with more funds compared to RHB. Credit risk refers to risk of loss of principal due to the borrower’s failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is used to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The capital risk ratio is used to calculate the capital risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a value of 7. 48%. This implies that RHB is well protected against any operating losses incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3: Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing-Housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other term oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual impairment allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing:- specific- generalTotal net loans, advances and financing| RHB Bank (RM’000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)—-71123,9 89| Hong Leong Bank (RM’000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714—(306,807)(471,305)30,938,086|Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its payment obligations to the Bank, which leads to a loss of revenue and the principal amount. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). Based on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is b etter in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, but it’s credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better in managing its credit risk and loan portfolio because most borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk quality. In order for the bank to increase and strengthen the risk management practices, RHB Bank ensures to maintain the credit quality of its loan portfolios, improve cost effectiveness, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the Board of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high-experience personal with high level re view undertaken by the Management Credit Committee under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is similar to RHB Bank whereby credit risk framework that is compliant with Bank Negara Malaysia’s guidelines on ‘‘Best Practices for the Management of Credit Risk†.The Group Risk Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the committees of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, operational risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and fin ancing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are guided by the Group’s Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, issued by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk system for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit application and behavioural scoring system in order to improve the Bank’s ability to control credit losses within predictive ranges and achieve a well balanced portfolio.This is accordance to the Basel II that RHB Bank is also practising whereby every bank requires to hold adequa te capital in order to fulfil the minimum capital adequacy of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required so that most banks will know how much capital they must hold. The Bank’s credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Bank’s risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual but they form a second line defence that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in accordance with the credit standards and the lending policies and directives established and approved by the Bank’s management and Board of Directors. Question 4: Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create m uch value to the shareholders due to low ROE. However, only the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good indicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and current assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic boom and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic activity of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit ana lysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of visiting banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch manager of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was kind enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items calling interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang Branch have 400 to 500 customers daily and they are overcrowded during lunch hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB Bank:Ampang Branch Cheras Branch Part B: Virtual Bank Balance Sheet |   |   | |   |   |   | | Liabilities| |   | | Asset| | 1. Deposit| | |   | 1. Gold and foreign exchange| i. Current deposit | |   | 2. Cash and Liquid Assets| | ii. Fixed deposit| |   | 3. Securities| | iii. Certificates of deposit|   | i. Trading securities | | iv. Other deposits such as call deposits, cash| ii. Investment securities | | management accounts and savings account| iii. Short term discount security| 2. Non-deposit liabilities| |   | iv. Long term bonds or notes| Liabilities due to clearing houses and financial| 4.Loans and advances| | institutions and rank in priority after deposit| i. Overdraft | | i. Repurchase agreements|   | ii. Credit card outstanding| ii. Promissory notes| |   | iii. Housing finance | | iii. Liabilities on bill acceptances|   | iv. Other term loans| | iv. Corporate bonds and other long-term borrowings| v. Lease and hire purchase finance | 3. Due to other banks| |   | 5. Due from other banks| | 4. Trading derivatives| |   | 6. Trading derivatives| | 5. Other financial liabilities at fair value| 7. Other financial assets at fair value| 6. Other borrowings| |   | 8. All other asset| | 7. Bonds, notes, and subordinated debt| 9.Due from customer on acceptance | 8. Other debt issues| |   | | | | 9. All other liabilities| |   | | | | 10. Goodwill and other intangible asset| | | | | | |   | | | | | | |   | | | | | Capital| |   | | | | Capital acts as a buffer against unexpected losses and| | | | protects against insolvency. |   | | | | i. Debt capital : borrowed funds|   | | | | ii. Equity capital : shareholders' fund| | | | NOTES : Asset 1. Changes in this item reflec t transactions of the following kinds: a. the Bank's transactions in foreign exchange and foreign securities (including under repurchase agreements); b. earnings on foreign currency investments; and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Bank's holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading securities : banks plans to sell before maturity ii. Investment securities : banks plan to hold till maturity iii. Short term discount securities : pay face value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the face value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognised at fair value and subsequently measured at amortised cost. Advances: non-der ivative financial assets with fixed payments that are not quoted in an active market i. Overdraft : – borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount| ii. Credit card outstanding: – borrower can purchase on credit| or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be charged | | | | iii.Housing finance : – Mortgage where the collateral is real estate – loan application fees are charged – variable rates(up to 30 years) – fixed rates(3-5 years)| iv. Other term loans : – example such as fully drawn advance – maturity of 5-8 years – a single loan of a specific dollar amount – fixed interest rate – application fees, establishment fees – repayment maybe fully amortised or structured to match the profits Generated by project being finance. | v.Lease and hire purchase finance : – se cured loans where the collateral is an asset – term of loan related to the life of the collateral – fixed interest rate – application fees, establishment fees| | | 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. example: land, buildings 8.Due from customer on acceptance : customer who wants to borrow from the bank may be offered a â€Å"bill facility† and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities: Deposit: 1. Current deposit : – No maturity and no minimum balance – Withdrawals by writing a cheque or through electronic transactions – May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit : – Minimum amount – Specific term eg. 1-5 years – Early withdrawals incur a penalty – Fixed interest rate 3. Certificates of deposit : – Face value at least $100,000 – Maturities between 14-270 days – Fixed interest rate – Originally issued at par but may trade above or below depending on Market yields. At maturity, receives face value plus interest 4. The deposits : a) Call deposit – must give notice of withdrawal, variable interest rate b) cash management accounts – minimum balance requirement, variable interest rate linked to money market yields c) savings account – no minimum balance or notice of withdrawal requirements – variable interest rate Non-Deposit: i. Repurchase agreements : – banks borrow for a short period (5 years) – sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes : – discount securities – bank sells to the market iii. Liabilities on bill acceptance : -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings : example domestic bonds, eurobonds Due to Other Banks: Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives: Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term. | Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example: borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value: Short term and long-term debt issues of the group including commercial paper, notes, term loans, medi um-term notes, mortgage backed securities and other discrete debt issues. All other liabilities: I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, etc) II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such a s unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible asset:Goodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Group’s share of the identifiable net assets at the date of the acquisition. Capital Debt capital : borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital : -shareholders’ fund which represents the remaining interest in assets of a company. -permanent commitment of funds -earns the residual income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report: 2010. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report: 2010. Retrieved September 12, 2011 from http://www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , ;amp; Kolari, J. W. (2007). Commercial Banking. Milton, Qld: John Willey ;amp; Sons Hassan, H. , ;amp; Mohammed, F. (2007). Banks’ risk management: a comparison study of UAE national and foreign banks. The Journal of Risk ;amp; Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report: 2009. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar20091. pdf Milbourn, G. , ;amp; Haight, T. (2005).Providing Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables ;amp; Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http://www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http://www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

Marketing Outrageously Essay

The author discusses how in the early 1980s the Portland Trail Blazers tried to move their radio broadcasting of games â€Å"in-house. † While doing this they sought out a fast food chain to sell its radio commercials to. McDonald’s, Burger King and Wendy’s all declined so they decided to go for a more local chain? Burgerville. The partner ship turned to be quite profitable for both as the â€Å"Blazer Meal† was a big hit for Burgerville and it allowed them to build more stores. The Trail Blazers made $900,000 with the business adventure. He goes on to talk about how AOL used an outrageous marketing strategy of sending out 250 million AOL computer disks into homes across America with a free month trial of the online service. The disks were given away everywhere and at all kinds of places. This shot them into the number one slot without CompuServe and Prodigy being able to realize it. He noted that before they took such a risk they tested their product in a smaller group of people before taking it to the extreme level they did. When he was in New Jersey with the Nets he tried the fast food sponsorship market again but with White Castle after being told McDonald’s would never associate themselves with the Nets. A few years past by and McDonald’s came calling about getting the same deal that White Castle had and the author told them they would have to wait and be the option if White Castle chose not to renew the promotion. The same also worked when he took the idea with him to Sacramento working as a consultant for the Kings. He just told the regional advisor in Sacramento to call the one in New Jersey and ask him about the promotion working. Chapter 7: Horse of Opportunity Ground rule #7: When a rare big opportunity comes along and you can’t test it, fly without a net. The author talks about the big risk that GardenBurger took. They decided to air just one thirty second commercial during the Seinfeld finale. The â€Å"Big Bang† sent out waves to the vegetarian population and led to GardenBurger increasing monthly sales by 411 percent along with many other increases in a 3 month span. The idea that was considered to be foolish paid off for the upstart company. Chapter 8: New as a Way of Life Ground rule #8: Take and experiment and make it part of your life. Do it again. The author brings up how the reading of the book Veeck as in Wreck by Bill Veeck is always a refreshing tool for his marketing ideas. He recalls one time when he re-read the book that he liked Veeck’s idea of the midget that he used to take an at bat during a baseball game. He decided to incorporate that into his basketball team the Buffalo Braves, but he chose to make the player a bit taller. Spoelstra went after the tallest man in the world who was nine feet three inches tall. The head coach at the time; Cotton Fitzsimmions loved the idea and was on board but would later find out that the man they were looking for had died. It was still a good way to be thinking in a way that others would not be. He talks about regular conversations with Kunitake Ando who is the president of Sony. Ando regularly talks about inventing new products even if they only last for a short time. From there the author goes on to talk about inventing new ways to market a product: A. It doesn’t take too much time B. It can work even better than the old ideas C. It is possible; there are always new ways you haven’t thought of yet He then gives other examples from movies and other industries that they use for their different ideas to expand to other areas of the market in outrageous ways that some companies would not consider using to market their movie or product.

African American Of The United States Essay -- African American, America

Some schools don’t accept black children and white child often bullied black children, so black children can’t get a equal treatment in school. In Unite States, some jobs not allow the black and only white, so black don’t have enough opportunities to work, and black often unemployment. Black often live a messy place, because white don’t want to rent the house to black ect. Review of American history, the United States since 1870, by the 15th amendment ( black won the right to vote ), up to now the black enter the presidential race for the first time and got elected and re-elected. ( democratic candidate black Obama became the first black President of the United States ), So American Negro suffrage cyclone have lit the African-American people unprecedented political enthusiasm. As we all know, the United States is an immigrant country, once was regarded as is the world 's ethnic melting pot. In nearly 30 years since the U.S. immigration policy unceasing change, the immigrant population has increased dramatically. The whites accounted for 72% of the U.S. population, blacks (13%), Hispanics (11%), Asia and the Pacific African people accounted for 4%. Changes in population structure, it is bound to the political, economic, and social and cultural impact, the impact in the new century, especially the new immigrants and the United States is traditionally the differences such as language, culture and the complexion that analysts have thinking: the United States will continue to be national melting pot? Or will become a "mosaic"? Although for this issue... ... middle of paper ... ... the university of Denver. In January 1989, has just turned 34, rice served as special assistant to President George w. bush 's national security affairs, started a career. As Russia expert in the bush administration, the rice was the top black women in the United States government. The presidential election in 2000, Condoleezza rice, as the republican candidate for President George w. bush 's chief foreign policy adviser, to advise the bush. Bush was elected President appointed rice President for national security affairs assistant. She has always been the President 's right-hand man. In January 2005, served as secretary of state, she is following the Clinton administration 's Madeleine Albright second female secretary of state in American history. The focus now is black senator Obama 's glorious struggle. In 1996, was elected Illinois senator, Obama and three-term.

Continuation of media influence on adolescents Dissertation

Continuation of media influence on adolescents - Dissertation Example Although, both men and women read, viewed and heard various media content, women are maximally influenced by the content both in the physical sense as well as in the mental sense. That is, while men are merely excited, women strive to be just as flawless and perfect as projected in mass media by following lifestyle practices, which sometimes could border on negativity. (Sengupta and Dahl 2008). When one looks historically, when other electronic forms had not yet made an appearance, print magazines was the major media influence occupying the mind space of both men and women. However, as mentioned above, although males read the magazines, they were not maximally influenced by them to incorporate as part of their lifestyle, this was not the case with the females. In those times, women are mainly viewed (and the adolescent girls were prepared) as housewives or homemakers, whose primary duty is to take care of their husbands, children and the household. (Sengupta and Dahl 2008).So, the me dia content in mid part of the 20th century featured information as well as tips mainly regarding this lifestyle of women. Although, some magazines also featured content and tips on other extra-curricular activities that can be carried out by the women, it was only in minority. The basic point is, all forms of media content mainly reflect or write or broadcast what is happening in the real society about real people or specifically about real women at that particular time. Thus, mass media now or earlier reflected or featured women centric issues that was/is prevalent. However, certain issues are not time-bound and are visible now also. Quite importantly, apart from reflecting what is in the society, this media content will also influence the society. That is, like a chain reaction, the media content gets created from the society, and when the society starts to continuously read a ‘specific’ type of content, they will or if correctly said, majority of them will get influ enced, thereby creating norms or stereotypes. This will change the lifestyle of many. As more adolescent boys and especially girls read, view or hear the media content, they will/have started viewing them as the eye-opener for many of their lifestyle choices as well as panacea for all their problems. When they do this, they will avoid or even ignore any tips from their parents For the past few decades, sexuality has been used in the mass media as the main form of gaining the attention of its viewers particularly the target segment of adolescents or youths, often showing models in a physical appearance, which negatively influences the adolescents. These contents in the mass media often use the subject of sexuality to promote the product or other features by correlating the two. Sizable content in the mass media show women as a symbol of beauty and sexuality, impacting men and women in different ways. (Sengupta and Dahl 2008). So, this literature review focusing on the trends and the influencing role of the mass media, will first discuss about the 1950s and 1960s mass media mediums particularly magazines and its impact or influence on the lives of the female, comparing it with the magazines of today. As part of the comparison, the review will also focus on how these mass media content took the ‘informational adviser’ tag, and gave a lot of tips to the adolescents, who sometimes preferred these media content over their parents. Media’

The global warming Essay Example | Topics and Well Written Essays - 250 words

The global warming - Essay Example ds, carbon monoxide, heavy metals, ozone, radon, and industrial smog (sulfurous and nitrous compounds mixed with water vapor and soot) (Global, 2003). Many of these pollutants are released into the atmosphere from areas of heavy industry and high traffic areas. Air pollution existed long before this, though, in the form of volcanic activity, fires, and dust-storms. This natural sort of pollution was generally able to be removed or assimilated by the functions of the biosphere. During these times, the earth was in a system that basically had minimal impact from humans. New chemicals and excess pollution since the industrial revolution, however, have taxed the threshold level of the biosphere. Acid deposition, global warming, and stratospheric ozone depletion represent unsustainable impacts on the environment. Many atmospheric scientists agree that air pollution from human sources has significantly altered the entire biosphere. Working globally in concerned international communities is seen to be key to solving the problem and reducing greenhouse gas emissions. But steps must be taken to reduce the threat of global climate change at the individual, local, state, and national, as well as the international, level. Steps could be as complicated as urban design and waste management research, or as simple as planting a tree. Many cities have voluntarily taken the initiative to improve the environment by implementing greenhouse gas reduction strategies. These strategies can help communities save money as they lower the risks to human health caused by glo bal warming. As too carbon dioxide enters the atmosphere from traditional energy sources, and as the media pays a lot of attention, more and more people have been exploring energy alternatives in the form of wind and solar energy, as well as exploring more environmentally friendly options in their choice of building materials. Global warming has been a concern of science for more than a century, perhaps

Experience about film or video related art field Essay

Experience about film or video related art field - Essay Example On Saturday and Sunday, the timing for visit to DIA starts at 10am in the morning and continues till 5 pm in the evening. On Wednesday and Thursday, one can visit DIA between 10 am and 4 pm. Friday happens to be the longest day in which the visit to DIA can be made. On Friday, visitors can make a trip to DIA from 10am till 10 pm. I also visited the Museum on Friday so that I would have maximum time inside it. DIA’s collection of art is very vast. It has compiled art work from all over the world. This makes it extremely diverse in its collection. Number of artworks presently contained in DIA exceeds 60000 which came from different parts of the world. Among all forms of art, the two that I liked the most were the classic work and the cutting edge work. The perceptions of the visitors about art are enriched through a visit to the Museum. DIA has developed partnership with quite a lot of hotels in its vicinity so that the visitors can be fully facilitated in every way and the visi t can be made as enjoyable as possible. There are superb gadgets and accessories in the Museum Shop at DIA. Visitors can see few extremely nice and unique accessories in this shop, many of which are not easy to find elsewhere in the world. I found a wonderful clock in the Museum Shop at DIA, and could not help purchasing it. It cost me $90. Unfortunately I did not have membership with the Shop.

Managing Strategically in The Public services Essay

Managing Strategically in The Public services - Essay Example This research will begin with the statement that the traditional model of administration was criticized earlier for its inward focus and short-term perspective. Both of these shortcomings have altered with the advent of public management, and the public sector now shows more concern with longer-term strategy than ever before. The strategic perspective considers the organization in its external environment; it aims to specify clear goals and objectives; it attempts to move away from routine management tasks to consider, in a systematic way, longer-term considerations of the very future of the organization. The strategy addresses ‘a crucial concern; positioning the organization to face an increasingly uncertain future. The traditional model missed out on the longer-term perspective and, by being preoccupied with process, often forgot there was a larger purpose, an overall goal, for any public organization. Using strategic concepts in the public sector is one way to address these shortcomings. Applications of strategy in the private sector are obvious enough, with considerable advantages resulting from looking a the long term and the external environment, rather than always considering more immediate internal problems. Normal management processes may be adequate for ordinary operations but it is also necessary, from time to time too, reassess the fundamental reason why the organizations exist, what it is trying to do and where it is going.... Strategic planning in the public sector is a phenomenon of gthe early 1980s, significantly later than its development in the private sector. Strategic management was also adopted but again followed the private sector with a gap of some years (Hughes 136) However strategic planning and strategic management are private sector concepts and it cannot be taken for granted that the ideas will work in the public sector. There are more problems and constraints compared to the private sector . Nutt and Backoff argue that strategic managers in the public sector 'should be wary of using private sector approaches that assume clear goals, profit or economic purposes, unlimited authority to act, secret development, limited responsibility for actions, and oversight through market mechanisms that signal financial results' and in public organisations 'many of these assumptions are not valid' in Hughes p136 Bozeman and Straussman argue that there are three major features of a strategic approach: defining goals and objectives, developingan action plan that meditates between the organisatin and the environment and designing effective methods of implementation'. (1990 in Hughes 137) The Bryson model (1988) is a strategic planning model derived from the private sector, but with some variations to allow for the public sector context: initiating and agreeing on a strategic planning process identifying organisations mandates clarifying organisation mission and values assessing the external environment (opportunities and threats) Assessing the internal environment (strengths and weaknesses) Identifying the strategic issues facing an organisation Formulating strategies to manage the issues; and Establishing an effective organisation visionf or the future In Hughes 138 The next

Organizational Change High School Essay Example | Topics and Well Written Essays - 2500 words

Organizational Change High School - Essay Example Kurt Lewin's theory of the change analysis is a widely accepted and analyzed model. Lewin was a social scientist and a change agent and his theories were better recognized due to their practicality of applying to change occurring in organizations. Before organizational change was taken seriously and processes put in place to manage it, change was accepted as something that just occurred and people just battled it out. It was not embraced with enthusiasm and considered as a part of the growth of an organization. Lewin Introduced a three-stage model of change: unfreeze, change, and refreeze. Lewin's Forcefield Analysis defines an organizational environment in need of change as a state of imbalance between driving forces (legislation, economic imperatives, and competitive pressures) and restraining forces (traditional practices, organizational culture, job insecurity). To achieve change, three steps are required: (1) the driving and restraining forces that hold the organization in a state of equilibrium must be unfrozen; (2) an imbalance must be introduced that enables change to take place, preferably achieved by reducing the restraints; and (3) the new elements must be refrozen. Unfreezing is the phase during which an organization is prepared for a change. This phase also will include disconfirmation of expectations, creation of guilt or anxiety and the provision of psychological safety that converts anxiety into motivation to change. Changing is the phase where a planned change actually takes place and moving into a new position is often through identifying a new model or mentor, scanning the environment for new relevant information. Refreezing is the phase at which change is stabilized and the organization is consolidated for the new mode of operation. This model still implies that change is sporadic. Mostly the situation is stable. Every now and then there arises a need for planned change. One does not wait until change is forced upon the organization. One needs to anticipate, strategically plan and implement and be ready to face the change when it does occur. One of the most important consequences is that change is a collective responsibility of the organization. Participation by all the parties involved, which includes, the employees, clients and management, are necessary to achieve successful organization change implementation. The three most commonly recommended strategies are self-explanatory: top down; bottom up; and a combination of these. Restraining forces Changes can be due to a variety of factors. Depending on the internal and external factors, change can be made in the area of tasks, people, culture, technology and structure. Increasing competition, Mergers and Acquisitions, changing legislations and advancing technology can precipitate change. Changing technology is often the harbinger of change. Typically, change of any kind

Explain what meant by the term Ricardian Equivalence. Does it meant Essay

Explain what meant by the term Ricardian Equivalence. Does it meant that public debit does not matter Discuss - Essay Example It suggests that debt management systems that a government uses cannot affect the total demand in an economy. As a result, the public will continuously save its excess monetary incentives to cater for the future increase in tax obligation. The theory has been instrumental in several nations including US in the management of economic complications such as inflation. It provides basic incentives and guidelines that enable investors in various economies to embrace the applications. However, it has been exposed to criticism from various scholars and individuals who question credibility. The stakeholders state that the theory is full of suppositions and assumptions but lack factual guidelines. They affirm that it cannot provide factual solutions to the current economic dynamics. The meaning of  Ricardian Equivalence, discussion on public debit and its relevance to economist Ricardian equivalence theory holds that consumers in various economic set ups are continuously internalizing their government budget constraints. Economically, the theory has real budget constraints and functions that represent expenditure in various fiscal or economic periods as determined by a government. Normally, the constraints are given in two periods (period1 and 2). They give a credible procedure of how government expenditure is arrived at and how key functions that include interest rate and value of holdings affect expenditure rates. g1 + b1 = (1+r) b0 + t1 and g2 + b2 = (1+r) b1 + t2. As indicated g1 and g2 are key denotations of government spending in both periods while t1 and t2 denote real tax revenue that a government is able to collect within the periods. Consequently, b0, b1 and b2 represent the value of the real asset holdings that a government has at the end of the periods. As usual r represent the real interest rate between the fiscal periods or period one and two respectively. These constrains gives a clear understanding on how government expenditure and allocation of resour ces is done. It also facilitates the understanding of the contribution of each element in calculating government expenditure. This empowers them to evade the effects of any tax changes that may obstruct their spending competence. Tax variations do not affect demand levels because consumers make adequate preparations to counter the effects of tax increases. The theory suggests that it is no longer an economic issue if an administration finances its costs with debt or tax raise (Ghosh & Ghosh 2008 p. 279). This is recommendable according to the theory because the sources of finance cannot affect the level of demand for various securities and other commodities in a fiscal system. This explains why public debt remains a key source of debt finance. It ensures that consumers are cushioned from the effects of economic hostilities. Indeed, the theory emphasizes the imperativeness of debt financing and increase in taxation in ensuring the achievement of balanced economy. Its development enab led economists to manage the balance of recompense deficit effectively. This is essential in ensuring that a country operates within its limits and strengthens its internal resource enlistment sectors. It also ensures that consumers and investors continuously study how budget is run, and make capital reserve for future tax increases (Ghosh & Ghosh 20

Starbucks Coffee Company - An Analysis Assignment

Starbucks Coffee Company - An Analysis - Assignment Example No Heading Page No 1 Retail Sales Mix by Products Type for Company –Operated Stores 3 2 Coffee & Snacks Shops – Industry at a Glance – 2011 4 3 Total Net Revenues of Starbucks 5 4 Ranking of Porter’s Five Forces 7 5 Outlet Numbers of Selected Specialty coffee stores 9 4 Number of Coffee Outlets - UK 10 6 Comparable Stores Sales Growth 15 1.0 Introduction: Starbuck is the leader in roaster, retailer and marketer of specialty coffee in the international level functioning in sixty nations around the world. Through company operated stores, Starbucks buy and roast first-rate coffee beans which it would market with handcrafted tea, coffee and other hot drinks, roasted beans, coffee accessories and a number of food items to its customers around the world. Starbuck main goal is that its coffee should be grown under the top standards of quality employing just buying practices. (Bussing-Burks: 1). Retail Sales Mix by Products Type for Company –Operated Stores : Starbucks established its first store on March 29, 1971 in Seattle. The major turning point in Starbucks operations started after Howard Schultz joined as director of Starbucks retail marketing and operations in 1982 as Starbucks started to offer coffee to espresso bars and fine restaurants. In 1984, Howard convinced the founders of Starbucks to apply the Italian coffeehouse concept in Seattle and in 1984, the ever first Starbucks Caffe Latte was offered. In 1987, Starbucks was acquired by II Giornale and the name was changed to Starbucks Corporation (Gilbert: 1). In 2000, Howard Schultz was promoted as chairman of the company. In 2008, Howard Schultz returned as the chief executive officer from the position of chairman and Coffee Equipment Company was acquired. In 2011, it acquired evolution fresh and in 2012, it acquired La Boulange. As of 30th September 2012, Starbucks has 9405 company –operated stores and 8661 licensed stores around the world. (â€Å"Starbucks Timeline 2012†). 1.1 â€Å"Segment Analysis â€Å" â€Å"Current Market Position† Coffee & Snacks Shops – Industry at a Glance – 2011 â€Å"USD in Billions† Revenue 26.5 Industry Annual Growth 2006 to 2011 2% â€Å"Annual Growth 2011 to 2016† 4.1% Industry Profit 1.6 Industry Wages 6.1 As per IBIS World Industry Report 2011 (Coffee & Snacks Shops), Starbuck is occupying 32.6% of share in the industry. (Fellner 2008:17). As per Starbucks annual report, Starbuck serves about 33% of total QSR (Quick Service Restaurant), which includes both convenience store coffee shop and coffee shop despite cutthroat competition in QSR, Starbuck is able to hold its share in the industry. Further in the global market, every one cup of coffee out of 100 cups of coffee served is being served by the Starbucks. 1.2 â€Å"Current Strategies† Recovering from recession, Starbucks has attained the highest annual income of $11.7 bn in the year 2011. During 2011, Blonde Roast, was introduced in its products, it entered into the juice segment by acquiring Evolution Fresh. Starbucks is now able to serve about 60 million

Safe guarding adults Essay Example for Free

Safe guarding adults Essay Abuse is the violation of an individuals human and civil rights by any other person or persons. The harm may be physical, psychological or emotional or may be directed at exploiting the vulnerability of the victim in a more subtle way. There are many different types of abuse such as physical, sexual, emotional, neglect, exploitation, discriminatory, institutional, bullying, self-harm and domestic abuse. Institutional abuse is the maltreatment of a person (often children or older adults) from a system of power. This can range from acts similar to home-based child abuse, such as neglect, physical and sexual abuse, and hunger, to the effects of assistance programs working below acceptable service standards, or relying on harsh or unfair ways to modify behavior. Institutional abuse can typically occur in a care home, nursing home, acute hospital or in-patient setting and can be any of the following discriminatory abuse financial abuse neglect physical abuse psychological and emotional abuse sexual abuse verbal abuse1 Exploitation is the fact or action of treating someone unfairly in order to benefit from their work. The main type of exploitation in health and social care is financial exploitation. Financial abuse can take many forms. For instance, title to the older persons home or other assets is transferred to the abuser and then sold. Funds from checking, savings, and investment accounts are withdrawn without authorization. Wills are changed through intimidation. Loans are taken out and the funds given to the abuser. Checks are signed over to the abuser, who cashes them. Even outright theft of property may occur.2 It’s also about abuse of power, where carers use their role with vulnerable adults for their own gain. Eg.Sexual gain, financial gain Residential Care: A suspicious care giver might misuse an elder’s personal checks, credit cards, or accounts, forge the elders signature or steal cash, income checks, or household goods. This can occur in the residential care home because the PWUS is vulnerable to trusting their health care practitioner as they seem reliable.3 Domestic violence and abuse Any incident or pattern of incidents of controlling or threatening behavior, violence or abuse. The abuse can be: psychological physical sexual financial emotional Signs and symptoms Here are some signs to watch for: †¢Bruises or injuries that look like they came from choking, punching, or being thrown down. Black eyes, red or purple marks at the neck, and sprained wrists are common injuries in violent relationships. †¢Attempting to hide bruises with makeup or clothing †¢ Making excuses like tripping or being accident-prone or clumsy. Often the seriousness of the injury does not match up with the explanation. Example 2 A nurse comes to visit a couple in domiciliary care, after couple of visits nurse notices bruising on the women when doing personal care and notices she is more withdrawn then usual and becomes defensive when the nurse asks about the bruising. Also the husband has to stay in the room when his wife’s personal care takes place and only a woman is allowed to care for his wife, else he gets aggressive towards the women Discriminatory Abuse Examples of discriminatory abuse Discriminatory abuse is mistreatment on the grounds of a person having a  particular characteristic such as a differing; ethnicity; gender; age; disability; sexuality; health status; religion. Denying one individual or group the same rights as another individual or group.4 For example, someone could be assaulted due to the colour of their skin. 1 A carer looking after a person in domiciliary care, and not respecting their privacy due to them being a certain gender or race. For example, the carer going through draws/taking belongings due to a presumption about their ethnicity. Signs and Symptom Discriminatory abuse can include:   unequal treatment due to race, gender, religion, age, sexuality or disability verbal abuse, inappropriate language, slurs, harassment and deliberate exclusion denial of basic human and civil rights e.g. allowing people to follow their own spiritual or cultural beliefs or choice about their own sexuality Indicators of discriminatory abuse may include: lack of choice lack of privacy and dignity lack of personal belongings use of punishment withholding food and drink Physical Abuse Physical abuse is defined as the use of physical force that may result in bodily injury, physical pain, or impairment. Physical abuse may include hitting, beating, pushing, shoving, shaking, slapping, kicking, pinching, and burning. Also, inappropriate use of drugs and physical restraints, force-feeding, and physical punishment of any kind also are examples of physical abuse. Signs and symptoms bruises, black eyes, welts, lacerations, and rope marks bone fractures, broken bones, and skull fractures open wounds, cuts, punctures, untreated injuries in various stages of healing sprains, dislocations, and internal injuries/bleeding broken eyeglasses/frames, physical signs of being subjected to punishment, and signs of being restrained Sexual Abuse Sexual abuse is defined as sexual contact of any kind with a person. Sexual contact with any person incapable of giving consent is also considered sexual abuse. It includes unwanted touching, all types of sexual assault or battery, such as rape, sodomy, coerced nudity, and sexually explicit photographing.5 Signs and symptoms bruises around the breasts or genital area; unexplained venereal disease or genital infections; unexplained vaginal or anal bleeding; torn, stained, or bloody underclothing; and An elders report of being sexually assaulted or raped. Emotional or Psychological Abuse Emotional or psychological abuse is defined as the infliction of pain or distress through verbal or nonverbal acts. Emotional/psychological abuse includes verbal assaults, insults, threats, intimidation, humiliation, and harassment. In addition, treating an older person like an infant; isolating an elderly person from his/her family, friends, or regular activities; giving an older person the silent treatment; and enforced social isolation are examples of emotional/psychological abuse. Signs and symptoms being emotionally upset or agitated; being extremely withdrawn and non-communicative or non-responsive; Neglect Neglect is defined as the refusal or failure to fulfil any part of a persons obligations or duties. Neglect may also include failure of a person who has fiduciary responsibilities to provide care for a vulnerable adult. For example an elder (e.g., pay for necessary home care services) or the failure on the part of an in-home service provider to provide necessary care. For example, failure to provide an elderly person with such life necessities as food, water, clothing, shelter, personal hygiene, medicine, comfort, personal safety, and other essentials included in an implied or agreed-upon responsibility to an elder. Signs and symptoms dehydration, malnutrition, untreated bed sores, and poor personal hygiene; unattended or untreated health problems;  hazardous or unsafe living condition/arrangements (e.g., improper wiring, no heat, or no running water); unsanitary and unclean living conditions (e.g. dirt, fleas, lice on person, soiled bedding, urine smell, inadequate clothing); and An elders report of being mistreated. Bullying To bully someone is where an individual uses their superior strength to intimidate or influence someone to do something that they want them to do. E.g. Bully a person with a mental illness to move or eat something if they do not want to.6 Signs and symptoms Depending on the extent of the bullying, the signs and symptoms can be a range of physical and emotional ones. These can include The victim becoming withdrawn and quiet Repeated injuries which can’t be explained such as bruises, burns or cuts The victim showing signs of losing focus and becoming unable to concentrate Signs of compulsive behaviour An example of bullying in an old peoples home for dementia and Alzheimer’s: http://www.bbc.co.uk/news/uk-wales-south-east-wales-12125575 Self-Harm Self-harm is an indicator of abuse. As a carer you should pick up on self-harm and put the appropriate/care in place to deal with issues. Legal responsibility safeguard-‘duty of care’ Deliberate injury to oneself, typically as a manifestation of a psychological or psychiatric disorder Signs and symptoms Unexplained cuts, bruises, burns etc. usually on wrists, arms, thighs and chest Keeping fully covered all the time, even in hot weather Depressed nature: low mood, tearfulness, lack of motivation and interest in anything Withdrawing from others P2: Detailed descriptions of the indicators of abuse and self-harm: Disclosure This is where the PWUS voluntarily tells you or through discussion or  counselling says that they have been abused. This is an obvious indicator because it is coming directly from the person who has been abused. After the PWUS has told this information to a carer it would then be their duty to pass it on and for an investigation to take place. As a carer you have legal responsibility to report this. The incident should be further investigated because the PWUS may have a mental disability and may not understand what abuse is, therefore they may say they have been abused when in fact they haven’t. For example a person with dementia might think they are being abused but really they may just be confused. On the other hand someone may reveal they have been abused but may not reveal the full extent of the abuse. An example of where disclosure may occur is in domiciliary care where self-harm is taking place in the PWUS own home. When the carer comes to the PWUS home they may reveal to them that they are self-harming. Changes in behaviour This can include many different things such as confusion, trouble with sleeping, loss of confidence and expressions of anger/frustration. Changes in behaviour can easily go unnoticed because in care settings the staff are usually quite busy catering for everyone’s needs whilst trying to follow up procedures. This means staff may not notice such a change in PWUS behaviour. Some changes may be more obvious than others, for example, if there is a person who is usually quite loud, bubbly, chatty or out-going and then they become quiet, reserved, start isolation themselves and submissive then this is quite an obvious change in behaviour. An example of changes in behaviour may be in a care home where one PWUS starts to avoid a certain carer and shows fear when they are around, this may be due to this carer being abusive in the past. Difficulties with finance This may be easier to notice as it would be quite easy to notice if someone had taken a lump sum of money from an account however it may be hard to link it with abuse straight away. Especially if a person has given someone their trust with their finances, you may not want to believe they are abusing that trust. The indicator may be more obvious if it is a sudden change from having plenty of money to struggling with finances. This is likely to be noticed by someone who is around the PWUS when they spend their money or  someone who deals with their finances. An example for this indicator may be where a PWUS is being taken out for the day through community care and they are unable to afford their lunch even though they had plenty of money to last a couple of weeks only days before. They may go to get the money from their purse and then have nothing in there. It may also be hard to detect whether someone is being abused financially as if it’s an elderly person with dementia they may have just misplaced their money or forgotten where they have put someone. However if this happens on a regular occurrence then it might have to be put into investigation. Stress which triggers health problems This may be harder to link to abuse as stress can come from many different experiences and events in person’s life which can happen at any stage. Mental health problems may be depression, anxiety, dementia etc. In this situation if mental health problems are spotted there should be an investigation to make sure the real cause of this is found. This may be likely to occur in an elderly people’s home where abuse leads to stress which then makes a PWUS dementia worse. A person with dementia is already likely to be stressed as they forget things (even things like forgetting where they are) and they get confused so it would be important to look deeper into stress in case there is any unknown or undiscovered cause to the stress. Unexplained injuries Bruises and scars are signs of abuse. These are the more obvious indicators as they are visible. A PWUS might try to hide these signs because they feel embarrassed or they might feel it’s their fault. The abuser might blame them and say that it’s their fault and make the PWUS feel shameful. For example in a care home a carer might be abusing an elderly with dementia by grabbing theirs wrists and pulling them around or hurting them and then saying to the PWUS that it’s their fault. They might say ‘no one will believe them if you tell because you’re crazy, you have dementia. They won’t believe you; you make me do this to you’. So as you can see this would be enough to make a PWUS feel too scared to talk of their physical abuse and they may feel too embarrassed or like no one will believe them. So unexplained injuries could be a sign of abuse so if you see this it’s important to look into what  caused the injury. Poor Hygiene Poor hygiene can be a sign of abuse as it could be a sign of neglect. Hygiene could be they’re own personal hygiene like not looking and smelling clean. Or it could be their environment for example if it’s someone who is living at home but has a carer come to look after them or help them. A sign of neglect could be the house is not clean, or their duvet smells dirty and their clothes to. However it may also be where a PWUS has more difficult needs and the practitioner leaves them out to avoid catering to their difficult needs. Physical indicators: -scars -hygiene -malnourishment -cancers -heart disease -panic attacks -mouth ulcers Behavioural indicators: -not trusting other people -low mood -low self-esteem -becoming passive or complaint -poor attendance at school or to social activities -attention seeking -mood swings -withdrawn -aggressive behaviour towards others -not expressing wishes or choices -difficulty sleeping -social isolation Both: -Difficulty to pay bills -depression -break down in relationships -unemployment -poverty P3: Explanations of factors that may lead to abusive situations Vulnerable adults may include: Learning disabilities: They don’t fully understand how to look after themselves and people may get frustrated because they do not understand certain things. They may have a lack of social awareness that they are being abused or treated unfairly e.g. Down syndrome goes to cinema and pays and isn’t aware of how much change they should get. Physical disabilities: They physically can’t do some things for themselves, can’t fight back when being abused. They are reliant on others for personal care, if care isn’t provided they can become neglected which may lead to infection, dehydration, malnourishment etc. Dementia: Unable to remember things which means people can take advantage of them. Memory confusion may mean the PWUS doesn’t realise they are being abused, this may tend to be financial abuse because they ae unable to keep track of their money so won’t notice if any goes missing. Mental health needs: They are unaware of what is normal and what isn’t therefore they may think abuse is normal and they shouldn’t tell anyone about it. Due to mental distress there may be confusion or lack of understanding over the abuse taking place. Aphasia: This is similar to dementia and the memory problem may cause confusion and someone may take advantage of this. A sensory impairment: For example blind/deaf. Blind people can’t see you taking money (can’t see abuse taking place). Deaf people can’t hear verbal abuse taking place. Ill health: (cancer, diabetes) People with ill health need personal care, and they may not know how to get the help that they need. They might be open to poor quality services as desperation means they will try anything. Someone may take advantage of this desperation by charging lots of money for something that won’t work. (Practitioners making false claims) Older people: Tend to require or be reliant for person al care and managing finances therefore someone may take advantage of managing their finances by taking money for themselves. They also may be forgetful so may not notice the abuse taking place. Environments where abuse may take place: day care centres; community care; day care; independent living residential care; hospitals; home; health services, e.g. GP surgeries, dental surgeries, physiotherapy Contexts of abuse: Adults who feel shame or fear of reporting; this may affect anyone as they may be scared of any repercussions that may happen as a result of reporting abuse. Discriminatory practice; this may affect anyone because everyone could be a victim of being discriminated against. This would occur if the person has a protected characteristic of which they are being discriminated against. People who are dependent on others for personal care, for example physical disabilities. This may lead to abuse as the PWUS may be rough handled and/or neglected. Adults who do not have the social awareness that abuse has taken place: this may include PWUS with dementia or a learning difficulty. Financial abuse may be likely to take place as the PWUS will be unaware that their money is missing. Communication difficulties; this could affect a PWUS who is an aphasiac, has a sensory impairment or has autism. They may not be able to fight back or stick up for themselves. They also may not understand the abuse as well as struggle to report it. Social isolation; this is likely to occur with older people in their own homes or people with a mental illness because they may live alone and not go out and see friends meaning they are going without any social contact. People with a mental illness may socially isolate themselves on purpose because they do not want to be around other people. Bullying within care services; this could also affect anyone and it is where a carer may exert their power over a PWUS to show that they are above the PWUS. It may also happen between PWUS where verbal or physical abuse is taking place. Invasion of privacy; this could  also affect any of the groups and may be where a PWUS is not given privacy to get undressed or go to the bathroom etc. Relationships involving power; any of the groups Lack of mental capacity to consent to sexual relationships: This may include people with learning difficulties and mental illness and because they can’t consent this is where sexual abuse may take place and the health or care professional may take advantage of this. Examples of people who may abuse: Health or care professionals, those working in health or care environments, other people using services, partners, carers, relatives, friends, strangers and volunteers. Reasons why these people may abuse: The abuse may be due to a historical cycle of abuse where ‘the abused becomes the abuser’. Being abused in the past may lead someone to think that it is okay to abuse others. People with depression/anger management issues may use their power over others to abuse. Those with anger management may be unable to control their actions in a fit of rage. Reduced mental capacity maybe due to learning difficulty or mental illness may mean they do not understand that what they are doing is abusive. They may feel as though what they are doing is not wrong as they do not know the boundaries of what is right and wrong. Poor safeguarding procedures may mean practitioners may not fully understand their role in protecting PWUS’. This means the abuse may be accidental because they are not following certain procedures correctly. Cultural differences/first language not being English may lead to frustration and misunderstanding between a practitioner and PWUS. Poor role model in a senior member of staff may mean that any new members of staff think its common practice and that it’s okay for them to abuse the PWUS. First hand experiences of violence may lead to imitation of behaviour. Poor care from the health care professionals may be due to long hours, bringing in personal issues to work and taking it out on service users. Also being in a low paid job and being short staffed can all be contributing factors to poor care. Short staffing may mean that there is not enough time to care for all the PWUS properly. M1: Short term effects of abuse Physical abuse/exploitation Physical abuse can have many effects (short-term and long-term) on a PWUS and these can be physical, intellectual, emotional and social; Physical health and wellbeing is the positive functioning of body systems and the absence of illness or disease. It is getting the right amount of nutrients, activity and rest needed to function. The potential short term effects of physical abuse on physical health and wellbeing include dehydration and malnourishment from not getting enough food and water. Also injuries such as bruising, cuts, finger print marks, whiplash, friction burns. There may also be long term effects for these injuries, for example if a PWUS gets a cut during personal care and this is not dealt with then it could get infected which could, in severe cases, lead to something like blood poisoning. Long term effects of head injuries may include something such as epilepsy which is very serious and could affect the PWUS in many different aspects of their life, for example they woul dn’t be able to watch films with flashing lights or go places like carnival or fair which usually have flashing flights which could prevent them spending special days out with their families. The potential short term effects of sexual exploitation may be injuries caused to the genital area as well as STI’s being passed on during sexual abuse which may take place in community care. PWUS with learning difficulties may be sexually abused as they would not understand what is happening and/or if it is abuse or if it is normal .This is because they don’t always know the difference between right and wrong and if the abuser is telling them its okay and normal they might not think any different as the abuser is meant to be the person caring for them. Financial exploitation could lead to the PWUS having to go without food and basic necessities as they are short of money therefore they may become malnourished. Financial abuse may take place in care from home where the carer has a responsibility to deal with their money and finances and they slowly and sneakily transfer money into their own account or they may take cash which is lying around and then make out the PWUS is just forgetting where they have put it and take advantage. This could go easily unnoticed as there would only be one carer and its in the comfort of the elderly PWUS home so not as many people would be there to become suspicious or realise. Intellectual health and wellbeing involves positive learning experiences which lead to skills and language being developed throughout life. Getting support to be able to learn and being mentally stimulated and challenged. The short term effects of physical abuse may include a head injury caused by the PWUS being shaken which may cause problems with cognitive processes and may cause the PWUS to become confused as well as have trouble with memory. If abusive practice is extensive enough that standard activity to stimulate intellect cannot be done by the PWUS because they may be unable to concentrate. This may lead to a fall in attendance at school/work. The short term effects of exploitation may include a PWUS being unable to focus on certain tasks due to thinking about being sexually taken advantage of. Also with financial exploitation the PWUS may have money worries due to their money being taken from them without their permission, this may then lead to them not taking part in activities that could stimulate the brain. If a PWUS is having money taken from them in their home during domiciliary care then they may feel very confused. Also a PWUS may be exploited by not being able to be involved in certain activities as a result of the carer leaving them out, maybe because their needs are more difficult than some of the other PWUS. This may lead to them not being intellectually stimulated and stumping their development in different skills and language. Emotional health and wellbeing includes being able to express yourself and if emotional support is required, being able to find and use this support. It is also being happy and secure in yourself as well as being in good mental health. Many emotions can arise when physical abuse and exploitation takes place and they tend to be very negative and can have negative effects on the person. Feelings of fear of the abuser are likely to occur, as a result of physical abuse. They may fear they may be abused again. If the abuse took home in a care home they may feel to scared to ever go into a care home again through the fear of being abused again. If it was sexual abuse they may feel upset and embarrassed/humiliated about the abuse. The abuser may also make the person feel as though the abuse is their fault therefore they may feel guilty and start to get a low mood which is the beginning of depression. The person being abused may become angry about the abuse as  well as becoming anxious abo ut it happening again. This could also lead to panic attacks. Exploitation such as a PWUS being treated unfairly by being left out/not interacted with as much as other PWUS may lead to them becoming upset and lower their self-confidence. They may start to make less of an effort and become withdrawn as they will feel excluded. Financial exploitation can lead to confusion as to where money is going and upset over not having enough money for certain things. Also if the PWUS becomes aware of the financial exploitation they may feel very taken advantage of and maybe helpless that they can’t do anything about it. They may feel no one will believe them or they may feel to scared to report it as they may fear abuse afterwards. Or they may feel maybe they are just being confused because that’s whats the carer has told them so they believe it. Social health and wellbeing is where a person has a social network of friends and family and is able to keep and form meaningful relationships. Also going out with these friends and families and enjoying yourself by taking part in different activities. Short term effects of physical abuse and exploitation on social health and wellbeing may include becoming withdrawn and not wanting to see friends and family. A PWUS, for example in a residential home, may stop wanting to participate in the activities provided and may stop interacting with other residents. The person may stop interacting with others as well as stop making choices for themselves and allowing others to make their choices for them. This will make them loose their independency which could result in them later being taken advantage of. Also the PWUS may begin to imitate unacceptable behaviour as they have poor role models around them. Exploitation could lead to a PWUS not wanting to interact with others if they have been left out in the past or have been taken advantage of. This could lead to social isolation as they would push people away and may lose social contacts. Strengths of spotting signs and symptoms early The indicators or warning signs of abuse are clues that something is happening in the life of the person that should be looked into. Some indicators are obvious signs of abuse. Other indicators are subtle, requiring careful observation. In some situations abuse may not be occurring  at all. It is important to think about the person and any health or behavioural issues they have. Some people may get injured more easily due to health reasons or aging. For example, some medications and some health problems like hemophilia (where the blood clots slowly) can cause easy bruising. Some people may engage in self-injurious behaviours that cause injuries that look like abuse. Even if you discover that a person has a health or behavioural issue that might be the cause of the injury, it is still important to investigate to rule out abuse as the cause. It is important to put aside any biases that you might have that care providers would not abuse a person with a disability that they support.

Rotational Dynamics Experiment

Rotational Dynamics Experiment

Fuzzy Logic Control Implementation On Pic Microcontroller

Fuzzy Logic Control Implementation On Pic Microcontroller Conventional PID controllers were used as a control strategy for various industrial processes from many years due to their simplicity in operation. They used mathematical models to control the plant for different process control applications. Fuzzy logic based control systems were introduced by Lotfi Zadeh to optimize the process control parameters in better way. In this paper, we have implemented a DC motor control strategy with the help of PID controller.Then we will optimize it with the help of fuzzy logic controller. The fuzzy logic control strategy shows the improvement in various control parameters like maximum overshoot, settling time for the DC motor control as compared with PID control strategy. This shows the superiority of fuzzy logic controller over proportional integral derivative controller. I. INTRODUCTION PID (proportional integral derivative) control is one of the earlier control strategies. Its early implementation was in pneumatic devices, followed by vacuum and solid state analog electronics, before arriving at todays digital implementation of microprocessors. It has a simple control structure which was understood by plant operators and which they found relatively easy to tune. Since many control systems using PID control have proved satisfactory, it still has a wide range of applications in industrial control. PID control has been an active research topic for many years. Since many process plants controlled by PID controllers have similar dynamics it has been found possible to set satisfactory controller parameters from less plant information than a complete mathematical model. Fuzzy logic is a method of rule-based decision making used for expert systems and process control that emulates the rule-of-thumb thought process used by human beings. Due to these properties, fuzzy logic can be used to control a process that a human can control manually with expertise gained from experience. The linguistic control rules that a human expert can describe in an intuitive and general manner can be directly translated to a rule base for a fuzzy logic controller. In this paper DC motor is first tuned using fuzzy logic controller and then we will be using fuzzy logic controller to improve the various process parameters follow. II. PROPORTIONAL INTEGRAL DERIVATIVE CONTROLLER The PID controller is the most common form of feedback. It was an essential element of early governors and it became the standard tool when process control emerged in the 1940s. In process control, more than 95% of the control loops are of PID type, most loops are actually PI control. PID controllers are today found in all areas where control is used. The controllers come in many different forms. There are standalone systems in boxes for one or a few loops, which are manufactured by the hundred thousands yearly. PID control is an important ingredient of a distributed control system. The controllers are also embedded in many special purpose control systems. PID control is often combined with logic, sequential functions, selectors, and simple function blocks to build the complicated automation systems used for energy production, transportation, and manufacturing. Many sophisticated control strategies, such as model predictive control, are also organized hierarchically. PID control is u sed at the lowest level; the multivariable controller gives the setpoints to the controllers at the lower level. It is an important component in every control engineers tool box. PID controllers have survived many changes in technology, from mechanics and pneumatics to microprocessors via electronic tubes, transistors, integrated circuits. The microprocessor has had a dramatic influence on the PID controller. Practically all PID controllers made today are based on microprocessors. This has given opportunities to provide additional features like automatic tuning, gain scheduling, and continuous adaptation. Controllers are designed to eliminate the need for continuous operator attention. Cruise control in a car and a house thermostat are common examples of how controllers are used to automatically adjust some variable to hold the measurement (or process variable) at the set-point. The set-point is where you would like the measurement to be. Error is defined as the difference between set-point and measurement. error = set-point measurement The variable being adjusted is called the manipulated variable which usually is equal to the output of the controller. The output of PID controllers will change in response to a change in measurement or set-point. Manufacturers of PID controllers use different names to identify the three modes. These equations show the relationships: P (Proportional) = 100/gain I (Integral) = 1/reset (units of time) D (Derivative) = rate = pre-act (units of time) Depending on the manufacturer, integral or reset action is set in either time/repeat or repeat/time. One is just the reciprocal of the other. Note that manufacturers are not consistent and often use reset in units of time/repeat or integral in units of repeats/time. Derivative and rate are the same. Choosing the proper values for P, I, and D is known as PID Tuning. A feedback control system measures the output variable and sends the control signal to the controller. The controller compares the value of the output signal with a reference value and gives the control signal to the final control element. The equation of ideal PID controller is $$ C(s) = K_{p} + frac {K_{i}} {s} + K_{d}s = frac{K_{d}s^2 + K_{p}s + K_{i}} {s} $$ III. FUZZY LOGIC CONTROLLER Fuzzy logic is a method of rule-based decision making used for expert systems and process control that emulates the rule-of-thumb thought process used by human beings. The basis of fuzzy logic is fuzzy set theory which was developed by Lotfi Zadeh in the 1960s. Fuzzy set theory differs from traditional Boolean (or two-valued) set theory in that partial membership in a set is allowed. Traditional Boolean set theory is two-valued in the sense that a member belongs to a set or does not and is represented by 1 or 0, respectively. Fuzzy set theory allows for partial membership, or a degree of membership, which might be any value along the continuum of 0 to 1. A linguistic term can be defined quantitatively by a type of fuzzy set known as a membership function. The membership function specifically defines degrees of membership based on a property such as temperature or pressure. With membership functions defined for controller or expert system inputs and outputs, the formulation of a rule base of IF-THEN type conditional rules is done. Such a rule base and the corresponding membership functions are employed to analyze controller inputs and determine controller outputs by the process of fuzzy logic inference. By defining such a fuzzy controller, process control can be implemented quickly and easily. Many such systems are difficult or impossible to model mathematically, which is required for the design of most traditional control algorithms. In addition, many processes that might or might not be modeled mathematically are too complex or nonlinear to be controlled with traditional strategies. However, if a control strategy can be described qualitatively by an expert, fuzzy logic can be used to define a controller that emulates the heuristic rule-of-thumb strategies of the expert. Therefore, fuzzy logic can be used to control a process that a human can control manually with expertise gained from experience. The linguistic control rules that a human expert can describe in an intuitive and general manner can be directly translated to a rule base for a fuzzy logic controller. IV. PROBLEM FORMULATION A DC motor is taken as a case study and the control is achieved using conventional PID controller and intelligent fuzzy logic based controller. The comparison of both the controller performance is analyzed.After analyzing,implement it on microcontrollers. V. DC MOTOR CONTROL USING FUZZY LOGIC CONTROLLER In classical control techniques PID controller was used as a standard control structure. Due to nonlinearities in the process the performance of the industrial machinery is greatly distorted and the efficiency is reduced. The new technique which uses fuzzy and PID controllers is considered as the extension of the conventional technique, because it preserves the linear structure of PID controller. These controllers are designed using the basic principle of fuzzy logic control to obtain a new controller that possesses analytical formulas similar to digital PID controllers. Fuzzy PID controllers have variable control gains in their linear structure. These variable gains are nonlinear function of the errors and changing rates of error signals. These variable gains help in improving the overall performance due to their characteristics features like self-tuned mechanism which can adapt to rapid changes of the errors and rate of change of error caused by time delay effects, nonlinearities and uncertainties of the process. VII. CONCLUSION In this paper a DC motor is controlled using fuzzy logic and PID controller. A mathematical model to control the DC motor is developed and the motor is controlled using conventional PID controller. The simulation results so obtained show that the PID controller gives high overshoot and settling time. Hence, fuzzy logic controller design was proposed and implemented using the principles of artificial intelligence. The fuzzy logic control will be implemented and the response will be compared with conventional PID controller. The fuzzy logic control shows a better control of motor parameters as compared with the conventional PID controller VII. ACKNOWLEDGMENT It gives us immense pleasure to express our gratitude to each individual associated directly or indirectly with the successful completion of the report. We would like to express our thanks towards our project Guide Prof. Dr. R.B.Ghongade for his invaluable cooperation and guidance that he gave us throughout our project. We would also like to thank our Head of Department, Prof.P.D.Khandekar for inspiring us and providing us all the lab facilities with the internet, which made the project work very convenient. VIII. REFERENCES [1] Erdal Kayacan and Okyay kaynak, An Adaptive Grey Fuzzy PID Controller With Variable Prediction Horizon, SCISISIS2006 @ Tokyo, Japan (September 20-24, 2006); 760-765 [2] B.G. Hu, G.K.I Mann and R.G Gosine, New methodology for analytical and optimal design of fuzzy PID controllers, IEEE Transaction of fuzzy systems, vol. 7, no. 5, pp. 521-539, 1999 [3] Awang N.I. Wardana, PID-Fuzzy Controller for Grate Cooler in Cement Plant, IEEE transaction of fuzzy system, no.7, vol. 32, 2005, 1345-1351. [4] Han-Xiong Li,Lei Zhang, Kai-Yuan Cai, And Guanrong Chen, An Improved Robust Fuzzy-PID Controller With Optimal Fuzzy Reasoning, IEEE Transactions On Systems, Man, And Cybernetics Part B: Cybernetics, Vol. 35, No. 6, December 2005; 1283-1292 [5] Isin Erenoglu, Ibrahim Eksin, Engin Yesil and Mujde Guzelkaya, An intelligent hybrid fuzzy PID controller, in Proceedings of 20th European Conference on Modeling and Simulation, 2006. [6] [6] Leehter Yao and Chin-Chin Lin, Design of Gain Scheduled Fuzzy PID Controller, World Academy of Science, Engineering and Technology 1 2005, 152-156