The Reasons To Enter Vietnam Economics Essay

The Reasons To Enter Vietnam Economics Essay 1.0 Introduction Vietnam located at the eastern part of the Indochinese Peninsula and the center of South East Asia and a tropical country of the northern hemisphere. The government is runs by the Communist Party of Vietnam. In 1995, the population size in Vietnam reached 74million, ranking second in South East Asia, seventh in Asia-Pacific Region and twelfth the world over. The population size was then increased to 95 million people in the year 2010. Vietnam count as a poor country if refer to its own country GDP per person. After Dot Moi came, the national economy has improved at a high rate thus it improved the living standards and national income of local people as well. The country is one of the fastest growing economies in global which had shown a consistent growth rate in the recent years. While according to World Economic Outlook of the International Monetary Fund in 2011, the GDP of Vietnam was increased per capita and develops from lower- income country to middle-income country (Richard Rou sseau, 2011). Coca-Cola entered Vietnams market at 2004 and produced its own vitamin-packed energy drink along with some familiar brands such as Joy, Fanta, Sprite, and others for the local consumers. Besides, Coca-Cola builds three production plants in Hanoi, Da Nang, and Ho Chi Minh City. Reasons to Enter Vietnam At 2004, Coca-Cola made its first move out from Africa, they decided enters to the Asias markets which include Vietnam. These acquisitions were in line with the Groups growth strategy to expand into emerging markets, in order to underpin the organizations position as an Emerging Markets Specialist (Coca-Cola Sabco History, 2009). The first move of Coca-Cola into Vietnam is based on the new emerge and rapid growth of economy in Vietnam. As the rapid population growth and improvement of economy in Vietnam, Coca-Cola took the opportunity to enter their market. Vietnams economy was growing at between 4% 8% after recovery from the Asian Financial Crisis of 1997.The enhancing of living and educational standards of Vietnamese help in providing employment opportunities to them. The entry of the firm in Vietnamese market able in enhance the economic development and create some job opportunities for the local people. As the soda consumption has reduced in the U.S., Coca-Cola is one of the soft drink industries that increasingly looking to expand their business in countries where there consist of higher national income rate and huge population (Bloomberg Business week New, 2012). This news had shown the reason that Vietnam still able to encourage more investment from Coca-Cola in Vietnam. Moreover, Vietnam relies on the petroleum industry for its local energy consumption and for export; it will cause the economy of Vietnam more stable and attracted many foreign companies direct invest in Vietnam. This had attracted Coca-cola to enter Vietnam markets at 2004. Moreover, the payment for employees in Vietnam is quite low, therefore, it attract foreign companies moving into Vietnam instead of traditional market such as China, India, and Thailand. These all reasons push Coca-Cola chooses Vietnam and made it first move into it to operate its plants there. 2.0 Analysis Gains of entering into a foreign country Political Stability Entering into a foreign country such as Vietnam consists of gains and shortcomings. One of the advantages to enter Vietnam is its political stability. According to Mr. Philippe Delalande in 2010, he mentioned that political stability is one of the factors that have helped Vietnam pursue its economic development policy. Others view from George E. Kobrossy in 2013, General Director of Zamil Steel Vietnam (ZSV) also mention the advantages which help in attracting foreign investors to the country is Vietnams political stability, administrative reform and its efforts in upgrading infrastructure facilities. Coca-Cola faced problems to enter some countries few decades ago due to the politic issues that happened in the country. Standage (n.d) said that Coca-Cola did not exist in the former Soviet Union (Russian) because they worry that the revenue would go transfer to communist government coffers. While Webster (n.d) mention that Coca-Cola not enter French society because Coca-Cola was a mar k of capitalism and a difference between capitalism and communism during Cold War.US brand like Coca-Cola found itself pester in politics, or singled out for criticism although they are not trying to get involved in politics, said Webster. Thus, for the obvious reason, Coca-Cola reentered Vietnams market because of the political stability after Doi Moi (reformation) policy as they feel more assurance in expanding their business in a stable politic country. Foreign Direct Investment One of the gains of Coca-Cola is that Vietnamese government provides many investment incentives for foreign investors, the corporate income tax is low compared to other countries in South East Asia (standard rate is 28% and preferential rates from 10% to 20%). The Foreign Investment Agency reports that by 15 December 2011 Vietnam had attract more than 13,667 foreign investment projects, with a total capital of around RM612 billion (Foreign Investment Agency, 2011). Foreign-invested companies including Coca-Cola accounted for around 27% of the countrys exports, 35% of the countrys total industrial productivity, constituted 13% of GDP, and contributed around 25% of total tax incomes (Vietnam Investment Review, 2001). Thus, there are about US$300 million was announced to invest in Vietnam by Coca-Cola for further capture growing opportunities in one of the most developing consumer markets (Staff, 2012). Under commitments made by Vietnam as part of its agreement to the World Trade Organi zation, Vietnam offered foreign enterprise which included Coca-Cola the general right to import products and sell them to licensed distributors. The process to obtain an investment certificate for foreign-owned company is much easier now. Low labor cost Vietnam is gaining competitive advantage for labor-intensive production industry on the basis of low salary level (Meyer, 2005). In the research on labor costs, Japan labor cost in one month is $1,810, continue by $1,144 in Singapore, $82 in Indonesia, and then Vietnam rank the second lowest place which is US$49 a month and follow by the highest is Cambodia with $47.36 (EuroCham, 2010). Coca-Cola who has chosen to set-up regional offices in Vietnam help Vietnam proven the extensive labor pool is competitive in the market (GLC, 2007). According to the information collected, we found that Coca-Cola Vietnam invest in Vietnam to help boost the local business sales and created 500 new jobs locally in Vietnam while the total labor force that gain this benefit is 99 percent of local Vietnamese (Staff, 2012). This high percentage use of labor force proves that Coca-Cola Vietnam is afforded to hire more local employees due to their low labor cost or low wages. Low production Cost Coca-Cola entering Vietnam because one of the gains is they can exempted from import duties to build fixed assets, such as bottling machinery, means of transport, and production materials that are not produced locally. Additional exemptions are available for raw materials, parts and materials imported for production of goods for export. Coca-Colas revenue in central Vietnam had witnessed a double digit growth over the past few years; three bottling plants of the company produce more than 608 million liters per year in Vietnam (Nordic Industry Development, 2012). Therefore, Coca-Cola beverages Vietnam invested over $3 million into its second Danang-based purified bottle water production chain, with a capacity of up to 6,000 of 500ml bottles per hour due to the low production cost they gain in Vietnam (Nordic Industry Development, 2012). Variety Product Lines that meet Vietnameses Beverages Need Coca-Cola enters Vietnam as they met the demand for hydration, nutrition and energizing refreshment of their customer in Vietnam. Coca-Cola has variety brand of products in Vietnam such as Coca-cola, Coca-cola Light, Fanta, Joy, Minute Maid, Dasani, Real Leaf, Samurai, Schweppes and Sprite. Joy is bottled water drink that pure and has the largest share of 32% compare other brand that company produce. Coca-Cola has the second largest share of 23% continue by Sprite with the percentage of 18% and Fanta which has 17%. Other brands like Samurai obtain 5% from the market share while Minute Maid and Schweppes each occupied 2.5% (Soft drink-Vietnam, 2010). They offer high quality product that meet the need of their target market. For example, Samurai is targeted on the underserved market which is the Vietnamese male adults who need an energy boost, as most of them have heavy workloads. This vitamin-packed energy drink is fortified with six essential B vitamins and has an exciting and refres hing taste with a carbonated, sweet flavor that appeals to the Vietnamese palate and popular among the target group. (Coca Cola Sabco, 2009) Shortcomings of entering into a foreign country Unable to generate wholly-owned subsidiary business One of the shortcomings of Coca-Cola in Vietnam is that foreign-based companies are generally not able to have wholly-owned subsidiary without production in the country. Therefore, importers would normally cooperate with local partners. (Nguyen Meyer, 2004). This had caused Coca-Cola lost a great opportunity in generating more profits. Coca-Cola started-up their bottling plants through joining venture with local Vietnamese partner using the name of Coca-Cola Vietnam. (DDDN, 2013) With the holding only 60 percents of the venture, Coca Cola has limited control over the resources, information and financial leverage to expand their business model and caused this business to be unprofitable. (à lvarez, 2003) According to Ho Chi Minh City Department of Taxation, Coca-Colas cumulative losses are US$180.6 million, even bigger than its equity of US$141.6 million and Coca Cola was doubted that having transfer pricing. (TuoiTreNews, 2012). Limited Control There a major part of Vietnamese business still owned and controlled by the government and local authorities although there is dramatically growth of private business in Vietnam in recent years (Embassy, 2005). State ownership is still dominant, and issues like informal business practices or land leasing still cause headaches to foreign investors. From the information we analyze, we believe that Coca-Cola also face more difficulties in accessing bank financing, land, and other critical resources that private and smaller enterprises faced the same problems (Tenev, 2003). Coca-Cola as a foreign investors enter Vietnam this Communist country need follow their culture and unfortunately control as well as restricted their business operation in order to continue survive in Vietnam. We believe that Coca-Cola need to have personal relationships in order to sustain their business under Vietnams control because there are some enterprises also follow the same culture with Coca-Cola. There are 4 0 percent of the enterprises believed they had to have personal relationships to receive allocated and transferred lands if regarding to the land use procedures (Vietna.net Bridge, 2012). Drinking Water Problems The last shortcoming of entering Vietnam is about drinking water problems. Drinking water is a key element for healthy life and it is a cornerstone for sustainable community. Most of the consumers of beverages who are concern of the water resource and it will directly affect their purchase decision. (Dickson, 2005)Thus for this obvious reason, Coca cola acknowledged that clean water is critical to operate in sustainable community like Vietnam. In many part of Vietnam, clear water is still a dream. However, Coca-Cola wasted 2.43 liters of water just to produce 1 liter of beverage on average. (Kenan Institute Asia , 2010) Thus, it has given a big impact toward the environment. Our business can only be as healthy as the local communities where we operate; access to clean water is one of the most important barometers of a communitys health. by Muhtar Kent, Chairman and CEO, the Coca-Cola Company. Coca Cola also understand that the issue of water wastage for the production not only affect s the ecology and environment but it affects the corporate image of their company as well. 3.0 Recommendations In past decades, Coca-Cola adopted joint venture with the local partners to penetrate into the Vietnamese market. However, many partners had quit the venture as they unable to bear with the consecutive  loss made. These losses are basically caused by the unnecessary spending and poor cash flow in the business. Thus, in order overcome the problem, jointing venture with local partner such as Chuong Duong Beverage Co. is not sufficient to expand their business efficiently, Coca-Cola should joint venture with other foreign firms who are large enough to support them in term of financial and management as well as serve the demand of the market. For instance, the PepsiCo. has jointed venture with Japanese beverage and wellness company Suntory Holdings Ltd. in Vietnam in order to sustain long term growth in Vietnamese market. As Suntory has a consolidated business foundation in South-East Asian markets, PespiCo is boosting its current market position in order to compete with their competit ors. (RTT , 2012) Beside, In order to generate more revenue, Coca-Cola should follow the footsteps of FedEx to consider in application for wholly-owned subsidiary. FedEx is expected to be the firm that having 100 percents of subsidiary in Vietnam. This could help them to have long-term commitment in Vietnamese market as they able to take advantage in this growing market. (Linh, 2012) In order to solve the limited control problems, Coca-Cola can establish a harmonious relationship with the local authorities since it easier to solve bureaucratic problems if and when they occur especially in Communist country. Relations with local and central authorities can be developed as cooperative relationships, and networking and building personal relationships is recommended to expand their business in Vietnam. Coca-Cola Company should build a close relationship with government so that they will provide more subsidies and privileges to Coca-Cola including the decreasing cost in power usage and cheaper raw materials. Gifts to the appropriate persons and doing more charity to the poverty residents may enhance the atmosphere and smooth the business process given that sending presents is part of traditional Vietnamese culture. Coca-Cola spent over 5milions to 2.1 billion populations in Pacific for the effort of managing the clean water resources with the Community Water Partnership (CWP) program .For example, in Vietnam, Coca-Cola enhances their corporate image and improving the water quality through the Plain of Reeds Wetland Restoration Project and Clean Water for Communities (Phase II), more than 10,000 Vietnam residents able to access to the clear water through. (Staff, 2012) However, these programs dont really have a significant improvement to clean water issue. Thus, in order to achieve efficiency and effectiveness for the business and production operation, Coca-Cola needs to have advance water recovery system besides their CWP program. Water resources always is the global challenges for the beverages company especially operate in country like Vietnam who facing serious issue of clean water. Indeed, Coca-Cola claimed that the technology that they developed not only can reduce operational water needs but it also improves water use efficiency by up to 35percents. (The Coca Cola company, 2012). However, we believe that this technology can be improved by learning from competitors innovation such as PepsiCo. With the helping of Siemens Industry Automation Division PepsiCo has installed an integrated reuse solution at Santiagos snack plantation. It helps the manufacturing facility in increasing its wastewater treatment capacity by 20percents and it is a beneficial technology that incorporating environmental. Besides, the system will reduce 70 percents of fresh water consumption. (Warrendale, 2012) Nonetheless, as we all know these two giant beverage companies were competed aggressively in the industry over a century. Additional, one of the competitive advantages of these companies to retain their uniqueness is their innovation and technology. Therefore, if these two companies could alliance themselves in term of sharing their technology among themselves to solve the water wastage issue it could bring a better water quality to Vietnamese as well as enhances their production especially the bottling process. Since they have the same interest, they can cooperate under the Strategic alliance basis. Strategic alliances are agreements between companies that remain independent and are often in competition. (R.J., 1999). Many alliances are designed in order to seek for improvement in volume, divide fixed costs of production and distribution. A very good example Coca-Cola can refer is the alliance of Nestlà ¨ and Haagen-Dazs. We believe we can grow better together than separately said a Diageo spokesperson. Nestlà ¨ would contribute its frozen dessert technology, while Haagen Dazs would contribute to distribution through the network of points of sale with its name. (E, 1999). The alliance of these two companies for production and marketing has allowed Nestlà ¨ sought to build critical mass in the ice cream sector and a way to reduce costs by operating its plants in California and Maryland at full capacity. (Pellicelli, 2003) Besides, further improvement in competitive advantages can be done through improving Coca-Colas variety product lines. As we know few of the Coca-Cola product lines like Samurai, Coke Light, and Joy win a competitive advantage in Vietnams market. If compare to Coca-Cola biggest competitor markets strategy, PepsiCo had entered the food market and earn over $13 million to their business. Besides, PepsiCo also engaged in snack food which brand under Frito-Lay to gain more markets share. Thus, we suggest that Coca-Cola Company also can increase their market share by extends their product brand in snack as what PepsiCo done. Coca-Cola Company can invest in a new snack brand to attract more consumers in the Vietnam food market. This strategy can be effectively and efficiently implement because snack food is commonly consumed by Vietnamese families but Vietnamese will consume snack food that import from United State due to its lower price (What We Eat to Help Us Grow, 2010). Coca-Cola Compa ny can produce healthy snack food with lower price to attract Vietnamese who focus in health such as Frito Lay which their tasting chips are low fat and ingredient all are natural which contain no artificial colors, flavors or preservatives (Pepsico, 2012). 4.0 Conclusion Coca-cola as a global leader in beverages industry offer hundreds of brand over the world had entered Vietnam market by offer quality product that can be trust and fulfill the need of Vietnamese. Coca-Cola Company help people lead to an active and healthy lifestyle by provide the information of the beverages. Coca-Cola Company announcement an investment plan of invest $300 million in Vietnam over the next three years to build new infrastructure, create jobs, develop strong partnerships and build its brands in the country.   In the research, we found that enter to Vietnam market have it advantages and disadvantages. After we analyze, we realize that the gains of Coca-Cola is more than shortcomings after enter Vietnam. In order to overcome the shortcomings, Coca-Cola needs to adopt immediate solution and effective strategies in order to strengthen their market position in Vietnam.

Helping Victims of Domestic Abuse Essay

Domestic abuse has grown to be one of society’s most shameful scourges. Its victims who more often that not comprise of women, endure public humiliation meted out by their spouse, extreme jealousy, control over who they see and talk to, spousal financial control, sexual assault, emotional and mental manipulation and in most cases, physical violence. There are many ways by which domestic abuse is perpetrated by abusive spouses but very few of its victims are willing to admit to it or are even aware that they are indeed being abused. When nineteen-year old Vickii Coffey married her childhood sweetheart at age 19, she thought her wedding day was just the first day of the life of her dreams. Little did she know that the following eight years of her married life would be spent in and out of hospitals as a victim of domestic violence. After 8 years of enduring such abuse and fearing for her and her son’s safety, Vickii finally filed for divorce. Today, 13 years after her nightmarish marriage, Vikki is happily married and works as the executive director of Greenhouse, Chicago’s oldest and largest shelter for battered women and their children. (Barber) â€Å"†The question I get all the time is, ‘Why would a woman stay there and take something like that? What’s her problem? ‘† says Coffey who now counsels women on their options to violence. † (Barber) Medical Sociologist Dr. Jacquelyne Johnson Jackson from Duke University Medical Center in Durham, N. C. , believes that many women, who stay and endure spousal abuse, have been â€Å"conditioned† to know their place as women often subservient to their fathers and other male members of the family(Barber). Some women however, stay because they do not know they are actually being abused. A newspaper article that appeared in Glasgow, Scotland’s Sunday Mail in January 23, 2005, details the experience of Julie Black, a 47-year old woman from Dumfries who nearly lost her life after being badly battered by her husband, David Hill for three hours (â€Å"It All Started with† 34). Hospital staff who tended to her counted up to 56 injuries on her body including a fractured skull and badly beaten eyes that puffed up so she could hardly see. Of her experience, Julie is quoted as saying: ‘He had to almost kill me before I realised I didn’t deserve to be treated that way. ‘I’m a fairly strong person. I’ve never thought of myself as a victim. But domestic violence creeps up on you so gradually you hardly notice†¦ ‘My friends and family were horrified. I was so ashamed of what was happening, I’d kept the abuse secret. Perhaps if I’d confided in someone, they could have talked sense into me and I’d have got out sooner. ‘ (â€Å"It All Started with† 34) It is normal for concerned friends to want to help people they suspect of being victims of abuse. While one’s first instinct would be to call the police or crisis agencies, sometimes the only thing they need to do is to just listen and be a friend. Here are a few guidelines (â€Å"How to help†) in how people should talking to a friend whom they suspect of being abused by her spouse: In preparing for the talk, concerned friends or family members must set aside some time to talk with her. They must make sure to pick a quiet place where the victim feels safe and comfortable. It is important to keep in mind that discussing such a serious and personal issue as abuse may not be easy at first. As the victim begins to talk, it is important that she feels her friend’s concern, as well as receive assurance that what she is going through is not â€Å"normal. † Victims of spousal abuse often feel that they deserve the abuse their partners do. They need to be re-assured that they are being understood and that the abuse is not their fault. It would be good for friends to let the victim know that they are worried for her and if any, her children’s safety. Victims constantly need to be reminded there are people who love and care for her who are ready to help the minute she asks. It is important that she doesn’t feel judged. Friends should be prepared to listen and simply be the victim’s friend. Let her talk at her own pace and in her own terms. Victims who feel comfortable in their friends’ presence will find it easier for to open up and just let the words flow. Shame and guilt are common among victims of abuse. Friends must be ready to reassure the victim that she is not alone in her situation and there are many people willing to help should she wish to ask for it. Abused women should never feel forced to do things she may not be ready to do as yet such as packing up and leaving her partner. While concerned friends may be tempted to tell the victim what to do, they must respect her space and decisions. If the victim does ask for advice, it is best to help her explore her options rather than give direct feedback. A â€Å"safety plan† she may follow should things get to be too difficult at home is always helpful. Whenever possible, concerned friends and family members are advised to read up on brochures and information regarding crisis centers and women’s support groups so that they may be able to give informed advice to the victim. It will probably be a good idea to offer to look up sources of help on her behalf. She may not want to right now but in the future, it may be good to have an idea of possible agencies that may be able to help her such as women’s crisis centers, psychiatrists or shelters. If after all is said and done and the victim still wishes to go back to her relationship, people must be able to respect her wishes and support her. It can be frustrating at times when after all the talking and crying is done, the victim may still decide to stay in an abusive relationship. It is very important to remember however that one cannot just â€Å"rescue† a friend. There are simply some things that take time and victims may need such time to come to terms with the reality of their situation before being able to concretely decide what to do. Works Cited Barber, Marchel’Le Renise. â€Å"Why Some Men Batter Women (and Why Some Women Take It): Domestic Violence Is America’s Most Common Crime. † Ebony Oct. 1990: 54+. Questia. 22 Oct. 2007 . â€Å"How to Help a Friend Who is Being Abused. † Violence Against Women. National Women’s Health information Center. 4women. gov. 21 Oct. 2007

What the Pros Arent Saying About Apa Essay Example and How This Affects You

What the Pros Aren't Saying About Apa Essay Example and How This Affects You What's Truly Going on with Apa Essay Example Most folks prefer to compose a brief essay writing service. In general, military isn't a science to be forgotten. Gabriel, though you're not required the help of physicians in managing the pronoun they refers to the online bennett and richard a. And rossman. The most frequently encountered paper writing service that the vast majority of our clients require is essay writing. It's possible to assume your audience is made up of men and women who know something about your topic and instructors that are experts in your topic. Ideally, you wish to pick a subject that's specific enough to let you fully research and learn more about the topic, but not so specific that you have a difficult time finding sources of information. Outlines the objective of the introduction. The Benefits of Apa Essay Example The page number in the very first instance is put at the conclusion of the quotation (p. 17). An individual may find presenting the essay title an additional time rather weird, as it's already indicated in the webpage header. By referring to the found example, it's going to be less difficult for you to organize the very first page of the human body in the proper way. The pages of the primary body should incorporate the running head and the number. Definitions of Apa Essay Example Following your introduction, however, there's a very good possibility that youwillwant to use headings for particular sections of your paper. How many you use will be based on the complexity of your paper and the range of chapters. The page header needs to be included in the top margin. Formatting your essay is just a matter of plugging the appropriate information into the ideal locations. The Key to Successful Apa Essay Example Regardless of what essay topic you were given, our essay generator will have the ability to finish your essay easily. Before you start your essay, familiarize yourself with a few of the fundamentals. You are able to hire us for all sorts of essays. This essay will give a discussion of the significance of APA style referencing within psychological literature but also with respect to consistency within academic essays. Your list of references ought to be set on a different sheet of paper at the conclusion of your essay. Well written a mixture of quotations. Begin to the very best essay useful phrases. Apa Essay Example Can Be Fun for Everyone If you must compose a paper in APA, you want to adhere to the directions given in the mentioned manual to create a suitable format and structure. There are several resources on the net which goes into a great deal of detail about APA format. If you neglect to follow appropriate format, they seem syncategorematic. The format can be adapted based on the nature and the topic of a custom made essay. Apa Essay Example - What Is It? In the event the source is written by multiple authors, then you ought to state last names of them all, at least in the very first reference within the essay. References Once research was conducted in the on-line library and your position was stated and supported with scholarly sources, the next thing to do is to create a Refe rences section. Figures ought to be big enough to allow easy reading. The War Against Apa Essay Example Cover Letters hold a prominent part in the expert world. Learning about APA style will be an extremely rewarding experience for you, as you'll be in a position to reply it in all your next writing assignments. The manner that phrase is listed in the prior sentence isn't correct APA style for a Level 2 heading, and that means you will have to edit the heading. Along with ensuring that you cite your sources properly and present information in line with the rules of APA style, there are several things you can do in order to make the writing process just a little bit simpler. Actually, there's nothing bad in it. The understanding of the past is the ideal approach to move in the future. Additionally, there are APA format essay citation rules to comply with, so in the event that you don't wish to get accused of plagiarism, you must always cite resources utilized in your essay. The revisions are completely free! Writing your very first APA format essay can be a bit intimidating at first, but learning a number of the basic rules of APA style can provide help. Furthermore, there's a beneficial resource named Purdue OWL where you're able to discover wonderful examples of unique sections of the papers formatted in APA. Then you might need to make the most of a well-written APA format essay template on your topic which you can order on our site. In some instances the author might be an organization or department, therefore the stating of their name will finish the APA essay format.

Over the last couple of years, the world has become...

Over the last couple of years, the world has become increasingly globalized. After the cold war, all parts of the world were attracted to the process of globalization. The effect of globalization is uneven in different parts of the world and globalization suggests a world full of persistent cultural interaction and exchange, contacts and connection, mixture and movement. Different people view globalization in different ways. Some people feel it has done more good than harm, while others believe it has done more harm than good. This essay will give a deep intuitive understanding of globalization, world systems, and how globalization has affected society, culture, economics, and politics. Globalization can be defined as the international†¦show more content†¦Also, if there was a country that believed that men should go through rites of passage and they became globalized, they will lose that aspect of their culture because in other globalized countries, that is not done. More so, globalization supports neoliberalism which is the privatizing everything that is done by the government which will eventually lead to poverty, making the society regressive so that the rich get richer and the poor poorer, reducing government regulations, and so on. Globalization also brings about inequality because the globalized countries will feel that they are higher in level than other countries which are not globalized leading to an inequality between countries. in addition, globalization leads to the depletion of the natural environment that is because the country is globalized, they would want to build more industries which will make them cut down trees and clear forests thereb y making the country lose its naturality. Various organizations and groups resist globalization which includes; Freecycle, Green party, Race Against the Machine, The Yes Man, and so on. There are also people who resist globalization such as; Michel Foucault, Jello Biafra, Slavoy Zizek, Naomi Klein, Michael Moore, Vandana Shiva, and many more. World systems theory is a macro-scale and multidisciplinary technique of approaching world history and changes in the society that emphasizes that the world-system andShow MoreRelatedOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesLinda Shopes, eds., Oral History and Public Memories Tiffany Ruby Patterson, Zora Neale Hurston and a History of Southern Life Lisa M. Fine, The Story of Reo Joe: Work, Kin, and Community in Autotown, U.S.A. Van Gosse and Richard Moser, eds., The World the Sixties Made: Politics and Culture in Recent America Joanne Meyerowitz, ed., History and September 11th John McMillian and Paul Buhle, eds., The New Left Revisited David M. 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Case studies: SAS Airline Ryanair Master Thesis in Entrepreneurship and Dynamic Business Contexts Spring 2007 Supervisor: Hà ¥kan Bohman Entrepreneurship Master Program Authors:
Gilles Helterlin and Nuno Ramalho
Acknowledgements We would like to express our gratitude to all who have contributed to the realization of this Read MoreInvestment and Economic Moats46074 Words   |  185 Pagesffirs.indd iv 2/1/08 12:55:38 PM T K H LITTLE BOO E THAT BUILDS WEALTH ffirs.indd i 2/1/08 12:55:36 PM Little Book Big Profits Series In the Little Book Big Profits series, the brightest icons in the financial world write on topics that range from tried-and-true investment strategies to tomorrow’s new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today. Books in theRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pagesreader to extend this linking of theory and practice further by analysing the strategic issues of speciï ¬ c organisations in much greater depth – and often providing ‘solutions’ to some of the problems or difï ¬ culties identiï ¬ ed in the case. There are also over 33 classic cases on the Companion Website. These are a selection of cases from recent editions of the book which remain relevant for teaching. The case studies are intended to serve as a basis for class discussion and not as an illustration of either

Why Schools Are Not to Blame for Cyber Bullying Essay

A young boy was once sitting on his computer when he saw an email from one of his peers. He opened the email, and soon enough realized he was being bullied. However, the young boy let the cyber-bullying get out of control. His parents told the school about it, but there was nothing they could do. The boy had to go to a new school where he wouldn’t be bullied. There are many problems like this that get out of hand, so much that the school can do nothing to help. Many people blame the school for not helping, when there is nothing they can do about it. Therefore, schools do not have the responsibility to respond to and protect students from the challenge of cyber-bullying, even if it’s off campus. Schools do not have the responsibility to†¦show more content†¦They said that students must learn themselves that they should not say something online that they wouldnt say in person. For example, if a student calls someone ugly online, they probably wouldnt say that in person. However, the school cannot do anything to stop this because they did it at home.The school systems cannot be held responsible for things that students do at home, and they should therefore, not be responsible to take action against cyber-bullying. Others would say that schools do have the responsibility to prevent bullying when the schools helping to prevent bullying empowers students to face up to their bullies. However, this is not the case.Students would not be empowered to stand up to their bullies if schools took responsibility for the students. Instead of standing up to the bullies themselves, the students would probably try to make the school take care of it. This goes to show that having the school take care of bullying for the students, would not help the students learn how to take care of things on their own. For example, if the students figured out that the school would take care of something for them, they would not want to do things themselves. Most students would probably get lazy. Therefore, schools should not be bound by law to take care of bullying because students would become lazy. Lastly, schools do not have the responsibility to respond to the cyber-bullying of their students is because sometimes, students do not tellShow MoreRelatedHow is Cyber Bullying Done? Essay621 Words   |  3 Pages Think about it? How is Cyber Bullying Done? To find an answer to this question is hard. Cyber bullying is done in many different ways around the world. Cyber bullying can happen anywhere at any time, even in places where you normally feel safe, such as home. Allot of cyber bullying can be done anonymously, you may not be sure who is targeting you. Since cyber bullies cant see your reaction, they will often go much further in their harassment or ridicule then they would face to face with youRead MoreCyber Bullying Must Be Improved And Consistent1267 Words   |  6 Pages Amanda Bridges Ms. Shultz / Mrs. Seymore English 5th Period 28 January 2015 Cyber Bullying Have you ever been cyber bullied? The effects of cyberbullying are greater than many people have come to realize. Cyber bullies have been around for a long time, but technology now gives them a whole new way to get to their victims easier and faster. Cyberbullying is the use of information technology to repeatedly harm or harass other people in a deliberate manner (abouthealth). Cyberbullying happensRead MoreParents Should Not Be Blamed For Bullying1075 Words   |  5 Pages Have you considered why we blame parents for their children being bullied? Parents should not be blamed for something their child did. I’ve researched this topic for awhile. We all should know that bullying is a major issue in today’s society. What’s even worse is the parents are being blamed for this! Though it was the bullies fault, the parents still get in trouble. This argument will prove that parents shouldn’t be BLAMED for bullying someone when it was their child; parents do n’t have twenty-fourRead MoreThe Social Problem Of Peer Pressure1659 Words   |  7 Pagesin Los Angeles, California who are peer pressured into bullying by their peers and conforming to peer pressure that leads to Cyber-bullying and Cyber-crimes. Bullies are misinterpreted as perpetrators; however, they were at some point victims too and created due to lack of social intervention and significantly affected by the victimization by their peers. Cyberbullying: Through the eyes of children and young people, it acknowledges how bullying has entered a â€Å"digital era† and the need for professionalsRead MoreCyberbullying Is Growing At An Alarming Rate1222 Words   |  5 Pagesdrugs, skip school, recieve poor grades, and have low self esteem. These negative effects of cyberbullying can get much worse; according to a study conducted by Yale University, 7% to 9% of suicides are committed due to some sort of bullying. Since the popularity of social media is increasing, we could expect that percentage to rise. We can no longer ignore cyber bullying because of its negative effects’, like suicide, and we should implement programs to reduce it and protect school age studentsRead MoreCyber Bullying Essay example1112 Words   |  5 Pageshas taken bullying to the extreme. Before advanced technology, children and teenagers were troubled by school bullies. Today, they are targeted by bullies via internet. Most people under go some form of bullying in life. Growing up, I experienced the typical name calling and spiteful comments. I also dealt with minor cases of virtual bullies. These bullies are known as cyber bullies. I find this topic compelling because it’s a matter that has spiraled out of control. â€Å"Cyber bullying is definedRead MorePublic Schools Should Be Able to Regulate Bullying Essay example1356 Words   |  6 Pagesteasing. When one reads these words, the first thing that we might associate it with is bullying. Whether or not we have experienced it ourselves, we have at least heard about it. However, as technology advances, so does the method of bullying. Today in our world that is run by technology, the modern method of bullying is called cyber bullying. The most recent definition of this is, â€Å"†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦This type of bullying allows the perpetrator to hide behind a computer screen or a phone screen and harass theirRead MoreCrt 205 Final Paper1576 Words   |  7 Pagesout one form for each source. |Source 1 Title and Citation: Cyberbullying Has a Broader Impact than Traditional Bullying | |Uhls, Yalda T. Cyberbullying Has a Broader Impact than Traditional Bullying. Cyberbullying. Ed. Louise I. Gerdes. Detroit: | |Greenhaven Press, 2012. At Issue. Rpt. from Is Bullying Going Digital? Cyber Bullying Facts. PsychologyinAction.org. 2010. Gale | |Opposing Viewpoints In Context. Web. 23 May 2012. Read MoreThe Effects Of Cyberbullying On Children And Teens1568 Words   |  7 Pagesbecoming more of an issue, some schools around the world have been enforcing rules to stop cyberbullying. 88% teens who use social media have seen someone be disrespectful to another individual. â€Å"It is no secret that teens are now spending more time than ever on social networking sites and due to this increase many are using it to bully their peers†. According to Sherri Gordon who wrote the article â€Å"Reasons Why Kids Cyberbully Others† here are some reasons why. Some reasons that children cyberbullyRead MoreThe Psychology behind Bullying in Adolescents Essay1176 Words   |  5 PagesBullying by definition is a form of aggressive behavior in which someone intentionally and repeatedly causes another person injury or discomfort. Bullying can take the form of physical contact, words or more subtle actions. [Why] Bullying has grown new outlets over the last decade. With social media outlets and text messaging added to the game, bullying is not just about getting tormented face to face anymore. Cyber bullying can include sending out mean or threatening emails and instant messages

Consumer Behavior †Chapter 1 Free Essays

Consumer behavior chapter 1 – introduction In our ever-increasing global market, attention needs to be paid to the global consumer in order to identify who they are. Marketers and consumer behaviour researchers are constantly attempting to determine the similarities and the differences of the multifaceted global consumer. Some general theory about the sociological and psychological influences on consumer behaviour may be common to all Western cultures, but there are still strong We will write a custom essay sample on Consumer Behavior – Chapter 1 or any similar topic only for you Order Now com/pricing-psychology-consumption/"regional consumption trends. Consumer behaviour as it pertains to the marketplace is concerned with the manner in which consumers purchase and use products and services, and how these goods are incorporated into their lives. Researchers use various techniques to determine the features of consumers. These techniques include categorisation by the use of descriptive characteristics, such as demographics and psychographics. Individual consumers are part of a larger society with common cultural values and beliefs, which can be further segmented into smaller groups, or subcultures. There are regional differences between consumers from different European countries, despite their being part of the larger European community. Marketers use  market segmentation strategies  to adapt their communications to meet the varied needs of a diverse target market. Consumer behaviour is good business! Marketers who understand their customers’ needs and wants do better than their competitors. The essential component is deciding who to target and how. Marketers do this by defining markets and then dividing these markets into smaller chunks, or segments. A segment is based upon the demographic and psychographic aspects of the targeted population. The consumer’s response is the ultimate test of whether or not a marketing strategy will succeed. However, initial consumer testing is not an absolute science. Sometimes a product can fail its initial test marketing and still go on to be highly successful. Sony has responded to market and consumer changes with its latest MP3 player, a rival to the Apple iPod. In attempting to define accurate information about the traits, habits, likes and dislikes of consumers, effective market segmentation separates members of a population into smaller segments of consumers who share unique characteristics that set them apart from the main population. Market segmentation  can be described as ‘slicing up’ the market into bit-sized chunks of information. It is essential that for effective segmentation the following criteria are met: Consumers within the identified segment share similar product needs that will be different to other consumers in other segments. Important differences between the segments can be clearly identified. The segment is large enough to be profitable. Consumers in the segment can be reached with an appropriate marketing mix. The consumers in the segment will respond in the desired way to the marketing mix. Two important segmentation tools are the use of demographics and psychographics to determine unique attributes of the targeted population. Demographic statistics measure the observable aspects of the population. Psychographics are far more subtle. They illustrate the differences in consumers’ personalities and cannot be measured objectively. Demographic variables include: Age Different age groups have different needs and wants. Consumers in similar age groups often share similar values and cultural experiences. Gender The behaviours and tastes of men and women are constantly evolving. It is thought that gender segmentation is an unintended result of marketing strategy. Family structure Marital status and family are important demographic variables that often affect spending priorities. Social class and income People in the same social class often have similar occupations and may share values and interests. Income is a good determinant of buying power and market potential. Race and ethnicity Immigrants from Asia and Africa are the fastest growing ethnic groups in Europe. Increased multiculturalism creates new opportunities for marketers. Geography Cultural differences play an important role in consumption patterns. Within the European context, consumption is common across cultures, but it is also specific between different cultural groups. European segmentation factors include: Consumption traits that are common across different cultures. Consumption traits that are specific to cultural groups. Relationship Marketing: building bonds with consumers The more marketers understand their current and potential consumers, the more effective they will be. This concept has developed into the role of  relationship marketing, in which marketers build long-term relationships between the company and the consumer. Relationship marketing is seen as the big trend for marketers. In conjunction with re lationship marketing, a major growth area has been the need to gather and manage accurate information about customers. This has culminated in the formation of sophisticated  database marketing  that tracks consumer buying habits. However, this ‘big brother is watching you’ concept intimidates some consumers. Database marketing is required to comply with respondent confidentiality restrictions. As global consumers, we are influenced significantly by marketers through a number of mechanisms centred upon building relationships with customers. Advertisements illustrate how we should act and define roles, as well as informing about the use of products. As of 2006, the majority of people will live in urban centres and the number of ‘megacities’ will increase to 26 in 2015. A controversial effect of the sophisticated marketing strategies used to communicate with these large potential markets is the emergence of  global consumer culture, in which people are united by their common devotion to brand-name consumer products, film stars and music celebrities. 2 Virtual consumption and the power of crowds There is little doubt that the digital revolution is one of the most significant influences on consumer behaviour, and the impact of the Web will continue to expand as more and more people around the world log on. It is not all bout businesses selling to customers (B2C e-commerce). The cyberspace explosion has caused a revolution in consumer-to-consumer activity (C2C e-commerce): welcome to the new world of  virtual brand communities. A close cousin of the global consumer is the  Euro-consumer. Much research and marketing effort is focused upon determining the characteristics of this consumer. Findings indicate links between social class, culture and income, with consumers who expressed more positive attitudes towards cultural change being more likely to consume luxury goods, despite their demographics and social class. 2 Marketing Ethics There is a constant battle between achievement of organisational profit goals and the necessity to conduct business honestly and ethically. 1 Prescribing Ethical Standards of Conduct Organisations often devise codes of conduct for their employees, and marketing associations provide guidelines for conduct, such as the following: Disclosure of the substantial risks associated with a product or service. Identification of added features that will increase the cost. Avoidance of false or misleading advertising. Rejection of high-pressure selling. Prohibition of selling or fund-raising under the guise of market research. Socially Responsible Behaviour Some marketers continue to violate the bond of trust with the consumer with the use of ‘bait-and-switch’ tactics and misleading claims. A critical barometer of ethical behaviour is the action taken by companies to rectify a problem with their advertising or products. Benetton discontinued their controversial advertisements that f eatured the depiction of an AIDS victim and which were deemed to be exploitative by consumers. Much criticism has been leveled at marketing techniques that influence consumers to purchase products that are not essential. Philosophers view this conundrum from the perspective of individuals exercising their free will and free action in coming to decisions. However, this clinical approach supports the argument so long as only informative advertising is used in the marketing communication. Any other type of advertising – such as ones with imagery and underlying motives – cannot be so clinically rationalized. The raging debate that marketing techniques manipulate customers continues. We explore this issue from three perspectives. 3 Do Marketers Create Artificial Needs? Some conservative traditionalists believe that advertising can lead to the moral decay of societies by the pursuit of hedonistic pleasure, while some liberals believe that the misleading promises of material pleasure function to buy off people who would otherwise be revolutionaries working to change the system. Through advertising, then, the system creates demands that only its products can satisfy. Numerous responses to this criticism abound, including the argument that needs are a basic biological motive and that a want represents one way that society has taught us that the need can be satisfied. The primary objective of advertising is to create awareness of needs, rather than to create the needs themselves. Needs are thus something that we are socialized to have. Marketers must be cognisant of the fact that they contribute heavily to the socializing influence of individuals in modern society and, thus, influence needs. Some commentators believe that purchasing decisions are manipulated by marketers using their understanding of psychology and the social sciences. They claim that marketers devise advertising techniques that manipulate a majority of individuals. A sense of social responsibility should underpin all advertising. There is little doubt that advertising creates and changes patterns of consumer behaviour. The central issue is whether the audience is discerning enough to see through the marketing hype and still make a deliberative judgement. Have a look at the  PBS Frontline website on ‘The Persuaders’, which explores the world of modern marketers and advertisers, and discusses the methods they use to decipher who we are and what we want. As powerful an influence as advertising is, in the majority of cases advertisers still do not know enough about their target audience to effectively manipulate them. This fact is supported by the high degree of product failures (40-80 per cent) that occur. 4 Interdisciplinary Influences on the Study of Consumer Behaviour Consumer behaviour is a multidisciplinary field that integrates a vast array of disciplines, from psychophysiology to sociology and anthropology. Each discipline views the subject from their own perspective, which results in a rich sociological interpretation of a fascinating and dynamic topic. The figure below illustrates the integrated and interconnected approach to consumer behaviour from both a macro and micro perspective. The macro perspective represents the social focus and the micro perspective represents the individual focus. [pic] pyramid of comsumer behavior Consumer research has adopted two popular forms of research paradigms, or sets of beliefs: Positivism Believes that human reason is supreme and that objective truth is only revealed by science. Structured and ordered. Stresses functionality. Celebrates technology. Regards the world as an ordered, rational place with a clearly defined past, present and future. Emphasizes material well-being, and is based predominantly on the homogenous views of a predominantly Western and male culture. Interpretivism Believes the social and cultural world in which we live is complex. Dislikes too much emphasis on science and technology. Emphasizes the importance of symbolic and subjective experiences. Believes individuals construct meanings based on unique, shared cultural experiences, therefore there are no right or wrong references. Consumption is interpreted as a set of diverse experiences. Many consumer behaviour experts believe that the existing predominant positivistic paradigm of consumer behaviour is undergoing a paradigm shift, due to challenge from the competing paradigm of interpretivism. How to cite Consumer Behavior – Chapter 1, Papers

Does a dividend policy matter free essay sample

That report is a detailed review of dividend policy and whether or not could affect the market value of the company. When companies make profits, managers have to decide either to reinvest those profits for the good of company or either they could pay out the owners (shareholders) of the firm in dividends. Once they decide to pay dividends they may possibly establish a permanent dividend policy, which is the set of guidelines a company uses in order to decide how much of its profits it will pay out to shareholders in dividends and that decision depends on the preferences of existing and new investors and the situation of the company now and in the future (Garrison, 1999). There are various limitations that may affect firm’s decision and must consider when paying dividends to shareholders such as Legal Limitations where added net realised profits is the only way to pay dividends, Liquidity where managers has to consider the effect that future dividend payments may have on liquidity, Interest Payment obligations where if the gearing (level of debt) is high then the available funds for dividends should be reduced and Investment Opportunities where a company could invest in attractive projects rather than to pay more dividends (Watson and Head, 2007). There are two theories related to dividend, the Irrelevance Theory suggested that dividend policy it is not relevant to security valuation and the Relevance Theory, suggested that it is relevant and affect the value (Bar-Yosef and Kolodny, 1976). Below will see those theories. IRRELEVANCE THEORY Modigliani Miller (1961) through the Irrelevance Theory stated that share value depends on corporate earnings, which reflect the investment policy of the company, depends only on investment decisions and it is independent of the level of dividend paid. First of all that theory assume that capital markets are perfect, there are no transactions costs associated with converting shares into cash by selling them and firms can issue shares without incurring flotation or transactions costs to raise equity, whenever needed (Damodaran [Internet source]). Another assumption that Modigliani Miller made is that there are no taxes at either a corporate or personal level associated with dividend and informations are freely available to all investors. Continuing with the assumptions Modigliani Miller stated that In a perfect capital market there are no conflicts of interests between managers and security holders, which is known as the Agency Problem. Shareholders, actually, own a company but managers are the ones who make the business run and decide. The agency problem arise because manager’s interests are different from shareholder’s interests and that is for the reason that managers may prefer to invest in unprofitable projects for their own benefit and that may incur some costs in order to manage the manager’s behaviour (Ming and Ming, 2013). Modigliani and Miller argues that rational investors, in other words those who prefer their wealth maximization, do not care whether they receive dividends on their shares or investing retained earnings in new opportunities, they have identical borrowing and lending rates and were apathetic to the timing of dividends. Furthermore shareholders can simply sell some of their shares for cash, if dividend are too small. According to Modigliani and Miller a company’s choice of dividend policy is a choice of financing strategy and the investment decision is separate from the dividend decision (Watson And Heat, 2007). They also argued that investors calculate the value of companies based on their future earnings capitalized value and is not affected by the dividends that a company pay and neither how dividend policies are set from company. RELEVANCE THEORY On the other hand we have the Relevance Theory of Lintner (1956) and Gordon (1959), who argued that dividends are preferred to capital gains due to their certainty, which means that an investor prefer to receive a certain dividend payment now rather than leaving the equivalent amount in an uncertain investment. If a company pays low dividends may face a fall in share price and that is because investors exchange their shares with shares of a different company with higher dividend policy. Under that theory we have Asymmetry of Information, which means that dividend decisions may contain new information for shareholders and that is because managers have more informations about the health of the company than investors. Asymmetry of information arises when capital markets are not perfect and depend on the direction of the dividend change and the difference between the actual dividend and the expected dividend by the market. Lintner Gordon argues that shareholders are not homogeneous, they have different needs and preferences and the majority of them need a fixed income preferring dividends to capital gains which depends on their personal tax circumstances. A company’s share price is affected downward form the disappointment of its shareholders if there is a significant change in its dividend policy. Lintner and Gordon use a mathematical model, knows as the Dividend Growth Model, to predict the value of ordinary shares through an increasing stream of cash flows. Dividend growth model is the equation:Po=(Do(1+g))/(r-g)=D1/(r-g), where: Po is the current market price of the share, D1 is the dividend at time t1, g the expected future growth rate of dividend, r the required rate of shareholders and Do the current dividend. The model shows the relationship between the payout ratio, the rate of return, market price of the share and the cost of capital (Answers, 2013). Both theories are established and argued by famous economists and we cannot challenge them, but under a real market conditions we cannot use the Irrelevance theory and that is because some of the assumptions made by Miller and Modigliani are not realistic. Transaction costs are not zero hence there is a price for investors who try to sell their shares and neither informations are freely available to all investors. Taxes does exists in the real world and issuing securities does incur costs. Moreover the assumption that investors have free informations available for them is unrealistic such as they have to spend time and money in order to have those informations (Watson and Head, 2007). For the reason that Irrelevance Theory’s assumptions are realistic under a perfect market only, the Relevance Theory is more useful in real world since a firm’s valuation is affected from the distribution of cash to investors (Ming J Ming X, 2013). POLICIES Using the more realistic theory there are some policies that should be used based on two factors: the company’s operation industry and second the nature of the company and its characteristics. As will see below those policies have advantages and disadvantages. Those Policies are: The Fixed percentage payout ratio policy, The Zero dividend policy and The Constant or steadily increasing dividend Fixed Percentage Pay-out Ratio is the policy where the ‘company pays out a fixed percentage of annual profits as dividends’ (Watson and Heat, 2007). In that case, firms can create reserves for the years that earnings are fewer than usual or when they have losses. Is better for companies with stable earnings over years (SlideShare, 2012). The main advantage is that a company who choose that policy can easily control and send clear signals to its shareholders, related to the level of company’s performance. The disadvantage is from the company’s point again and is that it limits the available funds for reinvestment (Watson and Heat, 2007). In Zero Dividend Policy ‘a company could decide to pay no dividend at all’ (Watson and Heat, 2007). That policy is more acceptable for new companies or for firms which need those profits for research new possibilities in the company. However is unacceptable to the most shareholders and that is because the majority of investors are rely on dividend payments as an income and that is the disadvantage of that policy. On the other hand the advantages are that is by not paying dividends, the administration costs will be eliminated making the operation easier and most important all the profits of the company could be reinvested making the company more attractive for new investors (Watson and Heat, 2007). In Constant or Steadily Increasing Dividend Policy, a company may choose to pay dividend in a constant or steadily increasing ratio. In that case investors prefer a yearly steady growth of dividends and avoid to invest in companies with fluctuating dividend (Lee, 2009). That policy counter to the zero dividend policy is more acceptable from the majority of investors and the reason is that they expect that payments will continued for ever. That except of the advantage may cause one disadvantage, the problem that shareholders expect dividends that company may be unable to afford. Another disadvantage is the fact that companies who adopt that policy do not have the ability to invest in projects that may be profitable (Watson and Heat, 2007) CONCLUSION Concluding this report we can say in sure that companies is likely to prefer the theory of Lintner and Gordon, the Relevance Theory, which argues that dividend policy does matter in real world and in the structure of the real market. Then, according to the policies stated above, should be able to choose which dividend policy is better for them. We hope that the contents of this report are useful and will help you to find the best for the company. We are waiting for your chief’s accountant comments and we are ready to help out you on any further matters which may arise on these or any other finance issues.