Impact of Money Supply Essays

Impact of Money Supply Essays Impact of Money Supply Essay Impact of Money Supply Essay European Journal of Scientific Research ISSN 1450-216X Vol. 41 No. 2 (2010), pp. 314-322  © EuroJournals Publishing, Inc. 2010 eurojournals. com/ejsr. htm Impact of Money Supply on Current Account: Extent of Pakistan Sulaiman D. Mohammad Department of Economics, Federal Urdu University, Karachi E-mail: [emailprotected] om Abstract The purpose of this research is to find out the empirical association among money supply, current account, exchange rate, and industrial production, for this purpose we have used (Johansen, 1988) co integration technique to analyze the long run relationship and Error Correction model to estimate the short run dynamics by using annual data for the period of 1975 to 2008. The domestic variables support long run relationship and weak relation in short run. Fragile combination of fiscal and monetary policy, finding supports Jcurve theory and expenditures switching affect theory. Keywords: Money supply, Current Account, Co-integration JEL Classification: C5, E5, F4 1. Introduction Economic management, stabilization and adjustment of any developing country are totally concern with the main instruments of an economy, monetary policy and foreign exchange rate. In most of developing economies real exchange rate shows the international competitiveness and high inflation as a result of currency devaluation and expansionary monetary policy. Monetary policy refers to implementations of central bank or monetary authorities that focusing on supply and availability of money regarding to reduce unemployment and control inflation. Keynesian economists argue expansionary monetary policy lead to economic growth, Monetarists explain ideal condition for maintaining inflation and steady growth is constant or slow increase of money supply. There are many types of monetary policies which focus on inflation, exchange rate and money supply. Monetarists believe in money supply targeting policy. In exchange rate targeting policy authorities adopt pegged exchange rate and some time devalue local currency in case of developing countries, exchange rate targeting policies lead to increase black economy. In inflation targeting or price level targeting policies central bank adjust interest rate according to economic condition. Interest rate plays a key role towards maintaining output gap and inflation (John B. Tylor). Some European and Asian countries, as well as Pakistan is also practicing inflation targeting policies. In case of our country both policies inflation targeting and exchange rate targeting polices simultaneously practiced but these policies did not show significant impact. What were the main reasons, economists argued that there is no coordination between fiscal and monetary policies. The statistical facts of money supply for last few decades mentioned in appendix. A wide ranging empirical literature has documented deferred and constant effects of monetary policy shocks on output. Theoretically real interest rate, inflation and the industrial production are the Impact of Money Supply on Current Account: Extent of Pakistan 315 result of money supply, expansionary policy leads to depreciate currency and current account deficit in short run while, contractionary monetary shock leads to current account surplus in short run (Jaewoo Lee). Many economists have examined that fluctuation in the central fund rates are a significant proxy for changes in monetary policy. Central fund rate have significant impact on macroeconomic aggregates but after 1980 it has been seen good measure of monetary policy but its impact on macroeconomic aggregates are not considerable (Nathan S. Balke Kenneth M. Emery). (Michael B. Devereux and Hans Genberg) examined by using open macro economic model in the case of China, expansionary monetary policy leads to increase in the real output and permanent price level for the time being, some countries have been selected like Hong Kong and Philippines. It is found an international imbalance have high significant correlation with China exchange rate appreciation. This study shows the positive domestic effect on international economies. Moreover, results emphasize the rising significance of China for its adjacent economies (Tomasz J. Kozluk Aaron N. Mehrotra ). (Lu Min) analyzed a two sectors in a small open economy. Applying general equilibrium approach of expectation they examined current account sensitivity to monetary policy shocks depend on the elasticity of substitution among investment, consumption and risk aversion and in case of a small open economy, current account efficiently react to technological shocks. In case of France, Italy, UK, the monetary policy shocks impact on balance of trade as a result with Expenditure-switching effect and also found a little support J-curve effect (Soyoung Kim). Money supply can be defined in Pakistan that the financial assets are highly liquid among other variables. M2 money supply variable is usually considered as proxy of money supply in most of the cases and it has a closed substitution of liquid asset as well as show the financial assets have used as medium of exchange ( Mahmood-ul-Hasan Khan Fida Hussain). J-curve theory explains the sensitivity of trade variables import and export due to devaluation or depreciation of currency. t first the depreciation in currency leads to deficit in current account and expansive import, but later on access in international market having ease competing with foreign producers cause reduce cost after some period, consequently the volume of export and price of imports increased cause to reduce the current account deficit. Inverted J-curve shows currency again get back to the appreciation. This research shows that the empirical evidence of money supply on current account variables such as import, export, net factor payment and real interest rate, exchange rate, inflation and industrial production. Impact of money supply on economy is sizzling issue of existing scenario, some fruit full detail of money supply in Pakistan find in appendix of this article. Section 1 provide introduction and literature review section 2 an 3 shows data source methodology section 4 and 5 provide result of study and recommendations. 2. Data Source Model Specification We have used time series data from 1975 to 2008. Data has taken from State bank of Pakistan’s web site, World bank data site (WDI) and International finance statistic (IFS) site. Given variables defined as; R denotes short term real interest rate, M denotes monetary aggregate M2, CPI denotes consumer price index, IP denotes industrial production, XR denotes real exchange rate NFP denotes the net factor payment, EX denotes Export and IM denotes proxy of Import. The model of our study is M= ? 0+ ? 1EX + ? 2IM + ? 3R+ ? 4CPI+ ? 5IP+ ? 6XR+ ? 7NFP+â‚ ¬ 3. Econometrics Methodology In multivariate model case, Johansen co integration technique is used to find association between the variables. This study consists six variables therefore, Engle Granger technique is not applicable because it is used for bivariate model. 16 Sulaiman D. Mohammad Generally, empirically evidences confirm that numbers of the macro variables are nonstationary series with traditional approach of ordinary least square (OLS) give the possibility of spurious regression. The non stationary in the variable can be removed by differencing the time series variable. Further objects the similar on the position that such a method involves failure of potential long run information of the data. In this situation, co integration and Error correction techniques hold long run information has been recommended. Co integration method deals with spurious regression and Error correction reflects short run dynamics and attempts to positive causal association. A series that is stationary are differencing â€Å"d† and denoted as I (d). Augmented Dickey Fuller Test also identified as unit root test are employed for testing the stationary and non stationary of the series. ADF testing the subsequent regression equation: ? Yt Y + t + ? ? 2 ? Yt ? k + ? t = ? + ? t ? 1 Where Yt stands for a time series, ? stands for a first difference, T stands for a linear trend, ? stands for a constant and ? is an error term. The null hypothesis of unit root is 0 = ?. If any variable is known to be non stationary it may be tested for stationarity at first difference. If any variable is found stationary at first difference then bivariate co integration test will be implied to recognize the association between variables. In this study Johansen test (1988) method is employed for co integration because of multivariate model. This co integration technique is employed to find out the number of co integration vector (Kerry Patterson). If any variable is co integrated, it reflects that there must be existence of an error correction in series which represent as: ? M = ? + ? 1 ? EX + ? ? IM + ? 3 ? R + ? 4 ? CPI + ? 5 ? IP + ? 6 ? XR + ? 7 ? NFP + ? 8 ? t ?1 + ? Where the error correction term is stationary residual form co integration equation. ECM reflects the ? 8 ? t ? 1 ? coefficient’s significance whether it is to be negative or positive which reflects the short run dynamics of the model. 4. Result Analysis Recent advancement in the field of eco nometrics refers that number of macroeconomics variables series are non-stationary. This influence described such regression is spurious and unpredictable to forecast, if the variables are not found stationary or integrated at different orders. Thus it is essential to verify stationarity of the variables of time series data prior to evaluating the long run association between variables. Table 1: Variables Import Export R CPI IP XR NFP M Significant at 5%level, Lag () Unit root test ADF (Augmented Ducky Fuller) Level with intercept and trend (lag length) 1. 90522(0) 1. 30590 (0) 2. 565322 (0) 3. 212361 (1) 3. 159647 (3) 1. 754631 (1) 2. 32541(3) 1. 95214(3) First Difference with intercept and trend (lag length) 6. 805222(1) 6. 579430 (1) 5. 422587 (0) 4. 646054 (5) 4. 366135 (5) 7. 389702 (0) 4. 23000(1) 5. 32511(1) The table-1 shows the result of unit root test found from using the Augmented Dickey Fuller (ADF) test. This test has been evaluating the stationarity in the variables with trend and intercept. After evaluated the stationarity at level, our result reflects that there is non stationarity in the data series therefore, we test out the stationarity at first difference, and hence our result exhibits that all the variables are stationary at first difference, now ADF equation is employed again with trend and Impact of Money Supply on Current Account: Extent of Pakistan 317 intercept. The brackets values exhibit the lag length of difference variables and all variables are integrated at first order i. e. is I (1). After evaluated the stationarity between the variables, result postulates that the data is integrated at second order and our next step to verify the long run association between variables whether it is exist or not, for this purpose the Johansen co integration test has been used and its findings in table-2 and table-3 as: Table2: Johensen Co integration test (trace value) Alternative Hypothesis r=1 r=2 r=3 r=4 r=5 r=6 Maximum trace statistics 240. 5128* 157. 804* 97. 22221* 57. 29995* 27. 08921 8. 609252 5% critical value 125. 6154 95. 75366 69. 81889 47. 85613 29. 79707 15. 49471 P-Value 0. 0000 0. 0000 0. 0001 0. 0051 0. 0995 0. 4028 Null Hypothesis r=0 r=1 r=2 r=3 r=4 r=5 Table 3: Johensen Co integration test (Eigen value) Alternative Hypothesis rgt;1 rgt;2 rgt;3 rgt;4 rgt;5 rgt;6 Maximum Eigne Value 83. 23238* 60. 05818* 39. 92226* 30. 21074* 18. 479 96 7. 523857 5% critical value 46. 23142 40. 07757 33. 87687 27. 58434 21. 13162 14. 26460 probability 0. 0000 0. 0001 0. 0084 0. 0225 0. 1129 0. 4292 Null Hypothesis r=0 r=1 r=2 r=3 r=4 r=5 Table no. 2 and 3 shows the result of co integration test. The Johansen- Juselius co integration test illustrates that all these seven variables are co integrated of six vector as we saw in the given table2 and table-3, both maximum trace statistics and maximum eignen values reflect r=6 co integration equation. Optimal lag of VAR model is 2-lag by using Shewariz criterion therefore, the result shows six co integration equations in the VAR model postulates the long run association between variables. The subsequent table-4 exhibits the result of Error Correction Model equation as above given. The ECM is used to analysis the spurious correlation in the short run dynamic association among output, financial structure, physical and capital formation, and financial development. The long run dynamics show in the set of regression equations. Technically, Error Correction Technique calculates the pace of adjustment get back to Co-integrated associations. The ECM estimates a force influencing the integrated variables to go back their long-run relation when they deviate from the deviation (Banerjee, et al, 1994). An equation of error correction model as: ? M = ? + ? 1 ? EX + ? 2 ? IM + ? 3 ? R + ? 4 ? CPI + ? 5 ? IP + ? 6 ? XR + ? 7 ? NFP + ? 8 ? t ? 1 + ? Table 4: Variables D(Exp) D(Imp) D(R) D(CPI) D(IP) D(XR) D(NFP) UT(-1) Error Correction Method Result T-Value -2. 2 2. 8 1. 9 2. 1 2. 3 1. 85 -2. 6 -0. 3 P-Value 0. 02 0. 06 0. 08 0. 09 0. 01 0. 08 0. 05 0. 06 318 Sulaiman D. Mohammad The estimated lagged ECM [error correction term], UT(-1) is negative and highly significant. This result supports the co integration between the variables exhibited in table-3. The feedback coefficient is –0. 3, which advocates a normal adjustment process. Almost 30% of the disequilibria of the earlier year’s shock adjust back to the long run equilibrium association in the present year. 5. Conclusion Implication This research evaluated the effects of money supply on current account using a Johnson’s co integration approach for the economy of Pakistan from the period 1975 to 2008. Our model has exhibited a number of important findings which confirm the impact of monetary policy shocks on current account is dependable on expenditure switching effect, and our results also reflect the little evidence of J-curve impact. Our co-integration and ECM findings also support the theoretical analysis. Our main finding is that the monetary policy system has an important influence on the domestic variables (for instance, output and inflation), but has less influence on external variables such as current account and real exchange rates. In policy rules we have examined that the policy rules seem to work best overall therefore, central bank should target the domestic (producer) inflation. The central bank ought to focus to manage the impact of the currency depreciation on import price inflation rather than adjusting interest rates which help to keep stable producer prices. Our finding also suggests applying pegged exchange rate system due to the high valued currencies are not only lead to volatile inflation but also slow down economic growth. References [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] David K. Backus and Patrick J. Kehoe, â€Å"International Evidence on the Historical Properties of Business Cycles†, The American Economic Review, Vol. 82, No. 4(Sep. , 1992), pp. 64-888 Balke, Nathan S. and Kenneth M. Emery (1994), `The Federal Funds Rate as an Indicator of Monetary Policy: Evidence from the 1980s, Economic Review, Federal Reserve Bank of Dallas, First Quarter, pages 1 16. Michael B. Devereux and Hans Genberg, â€Å"Currency appreciation and Current account adjustment†, HKIMR Working Paper No. 17/2006, December 2006 Tomasz J. Kozluk Aa ron N. Mehrotra , â€Å"The impact of Chinese monetary policy shocks on East Asia†, BOFIT Discussion Papers, 5/2008 Giovanni Olivei Silvana Tenreyro, â€Å"Shocks†, The American Economic Review, June 2007, Vol. 97, No. 3: 636-663. Soyoung Kim, â€Å"Effects of monetary policy shocks on the trade balance in small open European countries†, Economics Letters 71 (2001) 197–203 Lu Min, â€Å"Current account dynamics and optimal monetary policy in a small-open economy†,International Journal of Monetary Economics and Finance, Volume 2, Number 2, 1 May 2009 , pp. 166-193(28) Saqib, Najam-us and Aliya H. Khan (1988), â€Å"On an Empirical Definition of Money for Pakistan†, Pakistan Development Review, Vol. 27(4), pp 853-859. Bhuiyan, Rokon and Robert F. Lucas, 2007, â€Å"Real and Nominal Effects of Monetary Policy Shocks†, Canadian Journal of Economics, 40, 2, 679-702. Faust, Jon, and John H. Rogers, 2003, â€Å"Monetary Policy’s Role in Exchange Rate Behavior†, Journal of Monetary Economics 50, 1403-24. Jaewoo Lee, Current account and real exchange rate dynamics in the G7 countries Journal of International Money and Finance Volume 25, Issue 2, March 2006, Pages 257-274 Irfan Lal, Volatility of Monetary Policy in a Developing Economy: In Context of Pakistan, European Journal of Scientific Research Vol. 36 No. 2 (2009), pp. 172-183 Impact of Money Supply on Current Account: Extent of Pakistan [13] [14] [15] [16] [17] [18] [19] 319 Peng, X, M. A Marchant and M. R Reed. 004. Identifying Monetary Impacts on Food Prices in China: A VEC Model Approach. Paper Presented in the American Economics Association Annual Meeting. Denver, Colorado. August 1-4, 2004. Khan, Rana Ejaz Ali and Gill, Abid Rashid (2007): Impact of Supply of Money on Food and General Price Indices: A Case of Pakistan. Published in: IUB Journal of Social Sciences and Humanit ies , Vol. 5, No. 2 (2007): pp. 125-143. Ongan, Tevfik Hakan and Karabulut, Gokhan (2004): A Simple Model Of Currency Crises And Budget Deficits: The Case Of Turkey. Published in: Maliye Arast? rma Konferanslar? , Vol. 46, (2004): pp. 06-225. Columba: Narrow money and transaction technology: new disaggregated evidence. Forthcoming in: Journal of Economics and Business (2009) Abdul Qayyum, Capital Flows and Money Supply: The Degree of Sterilisation in Pakistan, The Pakistan Development Review 4. 42(2003): pp. 975-985 Arango, Sebastian Ishaq Nadiri, M. , 1981. Demand for money in open economies, Journal of Monetary Economics, Elsevier, vol. 7(1), pages 69-83. Mark L. Gertler , Current Account Dynamics and Monetary Policy, International Dimensions of Monetary Policy, pages 199-244 National Bureau of Economic Research, Inc 20 Sulaiman D. Mohammad Appendix Time Deposits M2 as % of Total Deposit GNP (1970-2007) In case of Pakistan the central bank uses these major tools of monetary pol icy: credit to commercial banks, interest rate channels , margin requirement and cash reserve ratios. Impact of Money Supply on Current Account: Extent of Pakistan 321 322 Growth Rates of Monetary Variables (%) Sulaiman D. Mohammad Where gM1: Represent the Growth Rate of Money Supply (M1) gM2: Represent the Growth Rate of Broad Money Supply (M2) gRM: Represent the Growth Rate of Reserve Money.

Cultural Dimensions of Wal-Mart Case Study Example | Topics and Well Written Essays - 750 words

Cultural Dimensions of Wal-Mart - Case Study Example The cultural dimension affects not only the human resources, but the company is also affected by the culture of the country/ region of its operation. There were widespread protests in December 2006 against the game, "Left Behind: Eternal Forces". This game was being marketed by Wal-Mart. The Washington-based Council on American-Islamic Relations urged Wal-Mart to stop retailing this game. Their contention was that this video game propagated religious violence. The group reminded Wal-Mart of its corporate social responsibility to take along people of all culture and faith (UPI Security & Terrorism, 2006). Headquartered in Bentonville, Arkansas Wal-Mart Stores (Wal-Mart) is the largest retail chain in the world. Since it caters to a wide variety of customers, its HR strength too belongs to a wide range of culturally diverse groups and communities. The company operates retail stores in the form of supercenters, discount stores and neighborhood markets. Wal-Mart has its footprints in many big markets like US, UK, Canada, Brazil, Japan, China and Mexico. Besides the physical stores, the company also provides an opportunity to its customers to buy the products online from its website. Since the company's market base is very wide, it is very crucial for the company to take care of the cultural values and emotions of different communities, ethnic groups and societies. For example, now a days the company is actively pursuing its ventures into the Indian market. From the marketing perspective Indian market is said to be a potential market, therefore taking fullest advantage of globalization o f economy and rapid liberalization of Indian economy, most of the big companies/ MNCs are making it a point to see that their venture into Indian market sees light of the day as soon as possible. Wal-Mart too is in talks with a leading Indian business group Bharti Enterprises Ltd. (Bharti) for exploring business opportunities in the Indian retail industry. Indians are supposed to be very much protective about their values and cultures, for example though a vast majority of Indians enjoy non-vegetarian food, but some non-vegetarian items like beef and pork a strict no-no in the public domain, because of religious reasons. These items are not supposed to be advertised in the media, not to be sold publicly. Wal-Mart will have to take care of such sensibilities. In the context of cultural dimension, the 'Wal-Mart effect' is known to have a range of effects signifying the ways in which Wal-Mart carries out its business operations (Fishman, 2006). The Wal-Mart effect in essence is the reshaping of shopping habits, draining out of viability of traditional local shopping areas, downward pressure on the prices, and the success of a large business at the expense of its rivals. The company therefore tries to take into account the local character. Some of the strengths of Wal-Mart are its strong market position in US, a world class supply chain, and a strong portfolio of private label products. Farra (2006), states that while the principles of retailing could be universal but the actual implementation of these principles varies from country to country based on country, culture and context. A study conducted by A T Kearney finds out that from 2002-06,

Earwig Insect Assignment Example | Topics and Well Written Essays - 250 words

Earwig Insect - Assignment Example Earwigs, after hatching, live for an estimated one year. The earwigs begin mating in autumn, and are mostly found together in winter or autumn. During mating, males and females live in soil, debris or crevices. After mating, sperms are capable of being in the female for long duration, months, before fertilization of eggs. Between mid winter and early spring, males leave. Thereafter, females start laying between 20 and 80 pearly white eggs. Parasitic earwigs are viviparous; hence produce live young ones during birth (Fisher, 2005). The reproductive system of the earwig females comprises; lateral oviducts, genital chamber, ovaries and spermatheca. Sperm is stored in the spermatheca, and the egg leaves the female’s body through lateral ducts. The female opening, referred to as gonopore, is located beneath the seventh abdominal section. Ovaries are primitive; hence, polytrophic (Robinson, 2005). Fossil documentation of Dermaptera begins during Late Triassic up to Early Jurassic duration approximately 208 million years ago in Australia and also England. The records illustrate around 70 specimens of Archidermaptera, the extinct suborder. Some modern earwig traits illustrated by neonatologists are not found in earliest fossils; however, the adults possessed five segmented tarsi, adequately developed ovipositors, long segmented cerci, and veined tegmina (Fisher, 2006). The major earwig species are Forficulina. This is divided into nine families comprising 180 genera; for instance Forficula auricularia, commonly referred to as the European Earwig. Species represented in Forficulina are not parasites, have functional wings and are free living. They possess unsegmented cerci that resemble huge forceps-like structures (Robinson,

Data Protection Act 1998 Essay Example for Free

Data Protection Act 1998 Essay The data protection Act 1998 came into force in 2000 and aims to protect an individual’s right to privacy in relation to their personal data. This includes things like the person’s medical information, information about their current employees, their address, pay, bank detail etc. Santander has to make sure the information of their employees is kept secret and no one can access it. Businesses like Santander need information about people to increase the chances of people joining them. They also need information about their customers e. g. their address, their home phone number, their occupation etc. so the information stored by business on database must be: Obtained fairly and lawfully Used for purposes stated during collection Adequate, relevant and not excessive in relation to the intended use Accurate and up to date Not kept for longer than necessary Processed in line with your rights Subject to procedures to prevent unlawful processing, accidental loss, destruction and damage to personal data Protected from transfer to an area outside the European economic area (EEA) unless adequate protection exists for that data in the area. Santander needs to make sure they follow all these laws or they can get prosecuted and their organisation can be closed down by the government for breaking the law. Santander needs to make sure all their employees obey these laws because if they break them then they are breaking the law. In order to make sure the employees working at Santander don’t break the laws, Santander provide them the information about these laws when they join to work for Santander and keep them up-to-date as the laws change. Freedom of information Act 2000: The freedom of information Act 2000 is a really important law. It provides individuals and organisations with the right to request information held by a public authority. This law came into effect in 2005. The public authority must tell the person asking for the information so the organisation or an individual if they (public authority) have the information or not and if they have the information then they must supply the information within 20  working days, in the requested format. Public authorities are the national, state or local government agency. The freedom of information Act 2000 does have exemptions to it for example if the cost of a request for information exceeds an appropriate limit, the public authority may decide whether a greater public interest is being served by denying the request or supplying the information. This law effect Santander because it can be used Santander to find important information about people, different trends etc. to increase the chances of peop le joining them. For example Santander can demand information about the statistics about people from public authority in order to help them sell their products. This law doesn’t affect the employees of Santander to much. This law doesn’t cause any conflict within the organisation so Santander doesn’t have to address it to much. Freedom of information Act 2000 can help Santander to persuade people to sell their items or what items to sell because they can get information about different trends or other statistics from the public authority which can show them what majority of people are like and what product they buy etc. For example the statistics about people who get life insurance after the age of 50 can help Santander sell life insurances because they will know what age group buy the most life insurance so they can target that age group and try to persuade them to join Santander. This is an important law which Santander can benefit from in order to progress faster as a company and make more profit. It doesn’t affect the customers or employees to much although in a way it does affect the employees, if Santander make more profit then they expected then they might give their employees higher bonuses. Computer Misuse Act 2000: This is a really important law because it prevents a lot of important things. The computer misuse act 1990 is a law in the UK that legislates against certain activities using computer for example hacking into other people’s account/system or misusing software’s to gain protected files. This means if someone tries to take another person’s personal file or hacks into their computer then they are breaking the law and can be prosecuted and jailed. The computer misuse Act is split into 3 different sections and these are: Unauthorised access to computer material. Unauthorised access to computer systems with intent to commit another offence. Unauthorised modification of computer material.  This is one of the most important laws for Santander to keep in mind because Santander has a lot of employees and this law applies to all of them. None of the employees can use another person’s information for their benefit or even look at it without a reason. If they do then they are breaking the law and will be sacked and reported to the police. In order to deterrent employees from looking at peoples information for their benefit, Santander sack anyone caught of committing this crime. It is really easy for people to commit frauds if they have other people’s personal information so this is another reason Santander has to make sure they handle people information carefully and they don’t send people’s personal information to other agencies and companies. If they do send their customer’s information to third parties without the customer’s permission then the customers can sue Santander. Santander has to make sure none of their employees commit any crime especially in regards to this law because it can lead to frauds being committed against their customer. Santander needs to make sure they take serious actions against anyone who breaks this law in order to deterrent people from doing it. This law protects the customers of Santander as well as the employees so it’s important. Health and Safety (display Screen equipment) Regulations 1992: This law is really important because it includes everyone associated with doing work on computers or other display screen equipment in Santander. Santander has a lot of people working on computers so this rule covers a lot of employees of Santander. This rule applies to employees who are a user of displace screen equipment, their work station have to be assessed with regard to the health and safety of the user. â€Å"The minimum requirements of the work station (i.e. display equipment, keyboard, software, accessories, disc drive, telephone, modem, printer, document holder, work chair, work surface or desk, etc. when provided are laid down in the Schedule. The scheduling of the work of a user shall be such that the work on the display screen equipment is periodically interrupted by breaks or changes of activity. Before a person is employed as a user that person has a right to have an appropriate eye and eyesight test carried out by a competent person. Such tests shall be available to users at regular intervals. Where normal corrective appliances cannot be  used when the operator is experiencing visual difficulties which reasonably may be considered to be caused by work on display screen equipment, the employer shall ensure special corrective appliances are provided.iâ€Å" When Santander recruits someone for a role which has the use of computers, they (Santander) should give them training regarding the appropriate health and safety to make sure they are safe whilst they do their job. In this rules a few things are covered such as: Equipment. Environment the person has to work. User/computer interface. Santander has to provide training for people who aren’t sure about how to operate stuff that includes display screens such as computer. This can be a expensive process for Santander because training sessions are expensive. On the other hand Santander can recruit people who are familiar with these regulation and rules in order to cut the costs of training them although it will be harder to find people like these because most of them have jobs. The more trained and experience Santander’s employees are, the faster the organisation will progress and the more profit they will make this is because if people know what they need to do then they will do it faster than people who struggle to do their role and need time to adjust or find the role hard. These laws mostly apply to employees in Santander so it is quite important for Santander to keep this law in mind and obey it. They need to make sure their employees are given proper health and safety guidance before they start and in addition Santander should regularly make their employees go to optician to get their eye sight checked. Santander have training sessions for people who aren’t familiar with these health and safety rules in order to make sure they don’t harm themselves while working.

Ethan Frome Readers Response :: Essays Papers

Ethan Frome Readers Response I thought the novel Ethan Frome by Edith Wharton was one of the best books that I have ever read. When I started reading the book I thought that it would be about the accident that Ethan experienced instead of the incidents behind it. The novel is also well written, Edith Wharton did a fine job writing a book that I never wanted to put down. I felt as though the story was being told to me and that I actually knew Ethan and Mattie. As well I enjoyed the way that Edith Wharton used a lot of adjectives to make the scenes and story come alive, for example in the end of the story during the sledding scene I actually felt as though I was on the sled with Ethan and Mattie. Only two things in the novel bothered me, the fact that in the beginning of the novel I thought that I would find out what happened to Ethan in more detail and I also wanted Mattie and Ethan to run off together. In the opening of the novel, I thought that I would learn more about the accident and when I finished the novel I thought that I was â€Å"left hanging† when Edith Wharton really did not tell you what happened after she made it seem as thought that is what the novel is about. I also wanted Mattie and Ethan to live happily ever after, maybe it was the female in me but I think that they should have run off together instead of being sensible. In the end of the novel, I was really surprised to find out that Ethan is still married to Zeena, I thought that Zeena might leave Ethan and then Ethan and Mattie could get married. I did notice some of the symbolism that Edith Wharton uses in her novel for example, that there is striking symbolism in the imagery that the author uses, primarily that of winter which depicts coldness, detachment, bleakness and seclusion. I also think that Edith Wharton chose winter as a theme in this novel because it symbolizes emotional and physical isolation, and death that surrounds Ethan. Similarly, the name of the town, Starkfield, is symbolic of Ethan's boring life. Just as Ethan’s house was once new and beautiful it is now worn by many harsh winters in Starkfield, as was Ethan after the accident.

Cultural Diversity

Race defines me as Mexican, German, and Irish. My religion defines me as Catholic. My country of birth defines me as American. However, I believe these terms describing me, merely list historical facts and statistics. The fact remains; I belong to these various groups by birth, not choice. I believe I am fortunate that my family instilled the understanding of diversity as far back as I can remember. Each of the people who raised me contributed to my value set in different ways. In addition, and most important, my personal experiences helped me to discover and appreciate diversity. I hail from Santa Ana, California where Hispanics make up 76. 1% of the city’s population, according to the U. S. Census Bureau (2009). In addition, my Mexican American grandparents primarily raised me. The neighborhood I where I lived consisted of fellow Hispanics and distant relatives. The Hispanic influence shaped my strong family values and racial identification. My grandparents truly believe that regardless of circumstance, family is first and above all else. The fact they raised me and still enjoy my company today is a testament to this teaching. Growing up with my grandparents meant, in addition to lifelong allegiance to family, a strong religious set of values. I was sent to Catholic school along with my cousins, taken to mass every Sunday, and prayed the rosary in hopes of keeping me safe from sin. I do appreciate the cost relating to my education; however, I am afraid it only served to strengthen my current beliefs. Specifically, that religious intolerance is unacceptable. Religious beliefs are individual. No religion is correct or incorrect. My grandparents grew up and survived an era of intolerance and prejudice. In spite of their experiences, they instilled in me values of tolerance and acceptance. My father, former â€Å"hippy,† is also responsible for my belief that, a person’s place of birth or color of skin is of no consequence. In my opinion, this teaching is the most valuable and relevant today. My second husband and I am an interracial couple. We share the same values, beliefs, and morals. The only differences we have relate to color and religious background. Thankfully, I was taught to value the person, all else is irrelevant. Through my husband, I learned that familial tradition influences religious and social beliefs. After several debates, I recognized that I was not as open-minded and tolerant as I believed. He helped me to accept myself given both, the negative and positive experiences in my life. Through him, I learned that to accept others, I had to accept myself. For me, this realization was monumental. Whereas I hold close the family values and acceptance taught to me, I realize that my diversity is due to my personal perspective. My grandparents could never teach to me the understanding of addiction. However, my father, through his own addiction taught me sympathy for those suffering from their own conflicts. I wore my father’s addiction as if the addiction were my own until I realized my siblings wore the same shame. I never understood loss of faith until I met a colleague who lost hers. Her experience helped me to understand how people are broken to the point of non-belief. I first married a person most resembling myself in terms of race and religion. However, I learned quickly that these commonalities do equal a match made in heaven. I went to school with people who came from wealth while I suffered poverty. Through these classmates, I learned that money does not magically equal happiness. My experiences do not necessarily relate to a specific culture, but do relate to understanding. I cannot make determinations upon anyone until I have experienced his or her same set of circumstances. I make no distinction between people based on religion, race, nationality, or sexual preference. I believe that each person has a purpose, even those who disturb me. By that, I mean, each person serves to strengthen beliefs or change our minds. Each experience with someone different is an opportunity to learn a new perspective. In my family, we married into various races, befriend people of various beliefs and religions, and enjoy the company of others regardless of association. Cultural diversity, in my opinion, is a two- word phrase describing understanding. I believe that I am not a product of pluralism, for I do not believe that cultural or ethnic values bind us (Kottak & Kozaitis, 2003). Assimilation does not fit my values or beliefs, because I do not believe that a single culture describes my upbringing. I believe that, based on my statistics, I am multicultural. However, based on my beliefs, experiences, and perspectives, I am simply diverse. References U.S. Census Bureau. (2009). State & County QuickFacts. Retrieved October 1, 2009, from http://quickfacts.census.gov/qfd/states/06/0669000.html Kottak, C.P., & Kozaitis, K.A. (2003). On Being Different: Diversity and Multiculturalism in the North American Mainstream (2nd ed.). New York: The McGraw-Hill Companies Cultural Diversity Race defines me as Mexican, German, and Irish. My religion defines me as Catholic. My country of birth defines me as American. However, I believe these terms describing me, merely list historical facts and statistics. The fact remains; I belong to these various groups by birth, not choice. I believe I am fortunate that my family instilled the understanding of diversity as far back as I can remember. Each of the people who raised me contributed to my value set in different ways. In addition, and most important, my personal experiences helped me to discover and appreciate diversity. I hail from Santa Ana, California where Hispanics make up 76. 1% of the city’s population, according to the U. S. Census Bureau (2009). In addition, my Mexican American grandparents primarily raised me. The neighborhood I where I lived consisted of fellow Hispanics and distant relatives. The Hispanic influence shaped my strong family values and racial identification. My grandparents truly believe that regardless of circumstance, family is first and above all else. The fact they raised me and still enjoy my company today is a testament to this teaching. Growing up with my grandparents meant, in addition to lifelong allegiance to family, a strong religious set of values. I was sent to Catholic school along with my cousins, taken to mass every Sunday, and prayed the rosary in hopes of keeping me safe from sin. I do appreciate the cost relating to my education; however, I am afraid it only served to strengthen my current beliefs. Specifically, that religious intolerance is unacceptable. Religious beliefs are individual. No religion is correct or incorrect. My grandparents grew up and survived an era of intolerance and prejudice. In spite of their experiences, they instilled in me values of tolerance and acceptance. My father, former â€Å"hippy,† is also responsible for my belief that, a person’s place of birth or color of skin is of no consequence. In my opinion, this teaching is the most valuable and relevant today. My second husband and I am an interracial couple. We share the same values, beliefs, and morals. The only differences we have relate to color and religious background. Thankfully, I was taught to value the person, all else is irrelevant. Through my husband, I learned that familial tradition influences religious and social beliefs. After several debates, I recognized that I was not as open-minded and tolerant as I believed. He helped me to accept myself given both, the negative and positive experiences in my life. Through him, I learned that to accept others, I had to accept myself. For me, this realization was monumental. Whereas I hold close the family values and acceptance taught to me, I realize that my diversity is due to my personal perspective. My grandparents could never teach to me the understanding of addiction. However, my father, through his own addiction taught me sympathy for those suffering from their own conflicts. I wore my father’s addiction as if the addiction were my own until I realized my siblings wore the same shame. I never understood loss of faith until I met a colleague who lost hers. Her experience helped me to understand how people are broken to the point of non-belief. I first married a person most resembling myself in terms of race and religion. However, I learned quickly that these commonalities do equal a match made in heaven. I went to school with people who came from wealth while I suffered poverty. Through these classmates, I learned that money does not magically equal happiness. My experiences do not necessarily relate to a specific culture, but do relate to understanding. I cannot make determinations upon anyone until I have experienced his or her same set of circumstances. I make no distinction between people based on religion, race, nationality, or sexual preference. I believe that each person has a purpose, even those who disturb me. By that, I mean, each person serves to strengthen beliefs or change our minds. Each experience with someone different is an opportunity to learn a new perspective. In my family, we married into various races, befriend people of various beliefs and religions, and enjoy the company of others regardless of association. Cultural diversity, in my opinion, is a two- word phrase describing understanding. I believe that I am not a product of pluralism, for I do not believe that cultural or ethnic values bind us (Kottak & Kozaitis, 2003). Assimilation does not fit my values or beliefs, because I do not believe that a single culture describes my upbringing. I believe that, based on my statistics, I am multicultural. However, based on my beliefs, experiences, and perspectives, I am simply diverse. References U.S. Census Bureau. (2009). State & County QuickFacts. Retrieved October 1, 2009, from http://quickfacts.census.gov/qfd/states/06/0669000.html Kottak, C.P., & Kozaitis, K.A. (2003). On Being Different: Diversity and Multiculturalism in the North American Mainstream (2nd ed.). New York: The McGraw-Hill Companies Cultural Diversity Understanding and Celebrating Cultural Diversity in America ` Many people mistakenly use phrases such as â€Å"American culture,† â€Å"white culture,† or Western culture,† as if such large, common, and homogenous cultures exist in the United States today. These people fail to acknowledge the presence of (1)cultural diversity, or the presence of multiple cultures and cultural differences within a society. In reality, many different cultural groups comprise the United States.The United States of America thrives on (2)diversity. A synthesis of the world’s plentiful and varied (3) races, religions, and cultures, America is a home to all, such that no one group can call itself more â€Å"American† than another. The fusion of cultures here is so unique and so exceptional that citizens can be just as proud of their original (4)cultural heritage as they are to be an American. However, many people remain opposed to the idea of cultural diversity, or multicul turalism.Cultural diversity is important because our country, our workplaces and our schools includes persons of various ethnic groups and interests. We can learn from one another, but first we must have a level of understanding about one another. What is cultural diversity? (5)Diversity is nothing more than a difference from the majority. Cultural diversity helps people to dispel negative stereotypes about one another. In any culture there is a majority and many (6)minorities. (7)Culture is a set of norms that set standards for a (8)society of what is acceptable behavior.Cultural diversity was characteristic of this continent prior to the coming of European colonists and African slaves. Throughout history, humans have expressed an interest in cultural diversity. People have recognized differences in values, (9)norms, beliefs and practices everywhere. Cultural diversity allows for a better understanding of other cultures and ideas. Whenever different groups have come into contact wi th one another, people have compared and contrasted their respective cultural (10)traditions.Societies often differentiated themselves from one another based on these variant cultural patterns. The many separate societies that emerged around the globe differed markedly from each other, and many of these differences persist to this day. As well as the more obvious cultural differences that exist between people, such as language, dress and traditions, there are also significant variations in the way they interact with their environment. Cultural diversity can be seen as analogous to (11)biodiversity.Writings on the diversity of cultures have often been based on (12)ethnocentric attitudes. (13)Ethnocentrism is the practice of judging another society by the values and standards of one’s own society. It appears that ethnocentrism is a universal phenomenon. In America, many of us have a peculiar habit of assuming that those who differ from our norms are wrong. We tend to view the w orld from a rather (14)myopic view leading to those outside this country calling us â€Å"ugly Americans†.As humans learn the basic values, (23)beliefs and norms of their own society, they tend to think of their own group and culture as preferable, ranking other cultures as less desirable. In fact, members of a society become so committed to particular cultural traditions that they cannot conceive of any other way of life. Unlike (15)assimilation, where everyone’s differences are lost in a giant melting pot, (16) multiculturalism advocates the idea that maintaining our different cultural identities can enrich us and our communities.Multiculturalism does not promote ethnocentrism or seek to elevate one (24)cultural identity above another. Instead, it celebrates diversity by allowing us to value our individual (17) heritages and beliefs, while respecting those of others. To combat the problem of ethnocentrism, (25)sociologists embrace the concept of (18)cultural relativi sm. Cultural relativism is the view that (26)cultural traditions must be understood within the context of a particular society’s responses to problems and opportunities.Cultural relativism is a method or procedure for explaining and interpreting other people’s cultures. Because cultural traditions represent unique adaptations and symbolic symbols for different societies, these traditions must be understood by sociologists as objectively as possible. Cultural relativism offers sociologists a means of investigating other societies without imposing ethnocentric assumptions. Cultural diversity makes our country richer by making it a more interesting place in which to live.Just think how boring a meal would be without Chinese, Mexican, Japanese, Italian, German, French or Indian food. Cultural diversity also makes our country stronger and better able to compete in the new (19)global economy. People from diverse cultures bring language skills, new ways of thinking, and creat ive solutions to difficult problems and negotiating skills. In the past, ethnographers in the United States used to refer to our country as a (20)melting pot where new (21) immigrants would eventually be fully integrated into the American culture.This has obviously not happened so modern researchers have begun to talk about America as a garden salad where different cultural diversity mixes with the European American culture to form a meal where all of the various ingredients are still readily identifiable. As we build our cultural awareness, we also build bridges to trust, respect, and understanding across cultures and within a multicultural world. Every culture and race has made a substantial contribution to American history. Respect for each others’ (27)cultural values and belief systems is an intrinsic part of cultural diversity.Look around and you will see that our society is very diverse. Diversity enriches our lives. People may fear diversity simply because they are acc ustomed to the way things used to be and change makes them uncomfortable. They often view other cultural traditions as strange, alien, inferior, crazy or immoral. But the bottom line is that when we fully recognize that America is great because of the contributions of the many, then we as a people will be even more united in our common goals, and even more proud to be American citizens.Without its rich mixture of religions, races, and cultures, America would not be the nation that it is today. Founded upon the basis of equality and freedom for all, America acts as a stage where intensely different cultures not only coexist peacefully, but also thrive symbiotically and create a nation. Cultural diversity makes the United States a much more interesting place in which to live for all of its (22)inhabitants. If we all thought alike, looked alike and acted alike, imagine how boring and dull the world would be. Each culture provides its own special and irreplaceable contribution to our un derstanding of America today.No one likes being ignored. People long to be celebrated, not tolerated. They always have and they always will. References Naylor, Larry L. (1997). Cultural Diversity in the United States. Westpoint, CT: Bergin and Garvey. Page 1-10. http://www. diversity-books. com. html Macionis, J. J. (2009). Society: The basics. (12th ed. ). Boston, Ma: Pearson Education Inc. Scupin, Raymond and DeCorse, Christopher. (2012). Anthropology: A Global Perspective. (7th Edition). Boston, Ma: Pearson Education, Inc. Pages 218-220. Cultural Diversity Understanding and Celebrating Cultural Diversity in America ` Many people mistakenly use phrases such as â€Å"American culture,† â€Å"white culture,† or Western culture,† as if such large, common, and homogenous cultures exist in the United States today. These people fail to acknowledge the presence of (1)cultural diversity, or the presence of multiple cultures and cultural differences within a society. In reality, many different cultural groups comprise the United States.The United States of America thrives on (2)diversity. A synthesis of the world’s plentiful and varied (3) races, religions, and cultures, America is a home to all, such that no one group can call itself more â€Å"American† than another. The fusion of cultures here is so unique and so exceptional that citizens can be just as proud of their original (4)cultural heritage as they are to be an American. However, many people remain opposed to the idea of cultural diversity, or multicul turalism.Cultural diversity is important because our country, our workplaces and our schools includes persons of various ethnic groups and interests. We can learn from one another, but first we must have a level of understanding about one another. What is cultural diversity? (5)Diversity is nothing more than a difference from the majority. Cultural diversity helps people to dispel negative stereotypes about one another. In any culture there is a majority and many (6)minorities. (7)Culture is a set of norms that set standards for a (8)society of what is acceptable behavior.Cultural diversity was characteristic of this continent prior to the coming of European colonists and African slaves. Throughout history, humans have expressed an interest in cultural diversity. People have recognized differences in values, (9)norms, beliefs and practices everywhere. Cultural diversity allows for a better understanding of other cultures and ideas. Whenever different groups have come into contact wi th one another, people have compared and contrasted their respective cultural (10)traditions.Societies often differentiated themselves from one another based on these variant cultural patterns. The many separate societies that emerged around the globe differed markedly from each other, and many of these differences persist to this day. As well as the more obvious cultural differences that exist between people, such as language, dress and traditions, there are also significant variations in the way they interact with their environment. Cultural diversity can be seen as analogous to (11)biodiversity.Writings on the diversity of cultures have often been based on (12)ethnocentric attitudes. (13)Ethnocentrism is the practice of judging another society by the values and standards of one’s own society. It appears that ethnocentrism is a universal phenomenon. In America, many of us have a peculiar habit of assuming that those who differ from our norms are wrong. We tend to view the w orld from a rather (14)myopic view leading to those outside this country calling us â€Å"ugly Americans†.As humans learn the basic values, (23)beliefs and norms of their own society, they tend to think of their own group and culture as preferable, ranking other cultures as less desirable. In fact, members of a society become so committed to particular cultural traditions that they cannot conceive of any other way of life. Unlike (15)assimilation, where everyone’s differences are lost in a giant melting pot, (16) multiculturalism advocates the idea that maintaining our different cultural identities can enrich us and our communities.Multiculturalism does not promote ethnocentrism or seek to elevate one (24)cultural identity above another. Instead, it celebrates diversity by allowing us to value our individual (17) heritages and beliefs, while respecting those of others. To combat the problem of ethnocentrism, (25)sociologists embrace the concept of (18)cultural relativi sm. Cultural relativism is the view that (26)cultural traditions must be understood within the context of a particular society’s responses to problems and opportunities.Cultural relativism is a method or procedure for explaining and interpreting other people’s cultures. Because cultural traditions represent unique adaptations and symbolic symbols for different societies, these traditions must be understood by sociologists as objectively as possible. Cultural relativism offers sociologists a means of investigating other societies without imposing ethnocentric assumptions. Cultural diversity makes our country richer by making it a more interesting place in which to live.Just think how boring a meal would be without Chinese, Mexican, Japanese, Italian, German, French or Indian food. Cultural diversity also makes our country stronger and better able to compete in the new (19)global economy. People from diverse cultures bring language skills, new ways of thinking, and creat ive solutions to difficult problems and negotiating skills. In the past, ethnographers in the United States used to refer to our country as a (20)melting pot where new (21) immigrants would eventually be fully integrated into the American culture.This has obviously not happened so modern researchers have begun to talk about America as a garden salad where different cultural diversity mixes with the European American culture to form a meal where all of the various ingredients are still readily identifiable. As we build our cultural awareness, we also build bridges to trust, respect, and understanding across cultures and within a multicultural world. Every culture and race has made a substantial contribution to American history. Respect for each others’ (27)cultural values and belief systems is an intrinsic part of cultural diversity.Look around and you will see that our society is very diverse. Diversity enriches our lives. People may fear diversity simply because they are acc ustomed to the way things used to be and change makes them uncomfortable. They often view other cultural traditions as strange, alien, inferior, crazy or immoral. But the bottom line is that when we fully recognize that America is great because of the contributions of the many, then we as a people will be even more united in our common goals, and even more proud to be American citizens.Without its rich mixture of religions, races, and cultures, America would not be the nation that it is today. Founded upon the basis of equality and freedom for all, America acts as a stage where intensely different cultures not only coexist peacefully, but also thrive symbiotically and create a nation. Cultural diversity makes the United States a much more interesting place in which to live for all of its (22)inhabitants. If we all thought alike, looked alike and acted alike, imagine how boring and dull the world would be. Each culture provides its own special and irreplaceable contribution to our un derstanding of America today.No one likes being ignored. People long to be celebrated, not tolerated. They always have and they always will. References Naylor, Larry L. (1997). Cultural Diversity in the United States. Westpoint, CT: Bergin and Garvey. Page 1-10. http://www. diversity-books. com. html Macionis, J. J. (2009). Society: The basics. (12th ed. ). Boston, Ma: Pearson Education Inc. Scupin, Raymond and DeCorse, Christopher. (2012). Anthropology: A Global Perspective. (7th Edition). Boston, Ma: Pearson Education, Inc. Pages 218-220.

Evaluation of pest analysis of the general motors company - Free Essay Example

Sample details Pages: 8 Words: 2257 Downloads: 4 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? Business, according to dictionary, refers to something being concerned with the sale and purchase of, or with trade and commerce. Over time, after centuries of research, the perspectives and the very fabric have changed, giving a new dimension to this phenomenon called business. The prime objective of this article is to deduce the business environment and also comprehend its gravity on management students and the entire business enterprise. To understand this better, PESTEL also known as PEST analysis will be applied on the GENERAL MOTORS COMPANY, it will help analyze the various factors which constitute a business environment and the strategic decisions taken in the last half decade. Subsequently, conclusions and recommendations will be accomplished. INTRODUCTION There are innumerable factors that exemplify an organization and all these factors affect the decisions and the strategies which the organization chooses to make. The factors might be external such as competitors, customers, suppliers and may have a direct effect on the functioning of a company. These directly effecting factors are referred to as Micro environment. In the same way the factors might be external and can affect the functioning of the company indirectly such as social, technological, political, legal and environmental. These aspects are termed as Macro environment (Palmer and Hartley, 2006). The primary objective of any organization is to manifest profitable and successful artifice which is only possible if the organization is enlightened about the weaknesses and can make maximum out of an opportunity when it strikes. To apprehend the business environment of a company, PESTEL analysis can be utilized to evaluate political, environmental, economic, social, technological and legal factors. PESTEL analysis helps evaluate the macro-environment better and subsequently produce fruitful strategies. Another important method of analysis is the SWOT which examines the e xternal aspects as threats or opportunities and the internal factors as strengths or weaknesses. These methods altogether constitute and help derive the most efficient strategy to achieve the desired goal. A deep analysis will be conducted on the GENERAL MOTOR COMPANY. A definite conclusion is subsequently deduced presenting the possible reasons which have led the company serious deficiencies in the past five years, the company being one of the oldest and unarguably top most automobile manufacturers all over the world, and the possible decisions taken by the company heads which led to such catastrophic outcomes. ORGANISATION DESCRIPTION AND BACKGROUNG Founded on September 16, 1908 famously known as GM, General Motors Company is a group from the United States of America, with its head branch located in Detroit Michigan. The company is massive, with its establishment in 34 countries and employees numbering about 244,500 from all around the world, including sales and services in about 140 countries. According to the statistics in 2008, GM has ranked as the largest automaker in the U.S and the second largest in the world. The General motor Group owns a series of world class car manufacturers which makes GM group indisputably the worlds biggest automobile entity. The General Motors Company is headed by Edward Whitacre.Jr. as the Chairman of the Board of Directors and the Chief Executive Officer. With automobile brands such as Buick, Cadillac, Chevrolet, GMC, Daewoo, Holden, Jiefang, Opel, Vauxhall and Wuling under its hood, it is a daunting task to manage this business, which is spread in almost every continent. In recent times the company has faced humongous challenges, which has made the company choose new business strategies and reform itself. (www.gm.com, 2010) GENERAL MOTORS COMPANY BUSINESS ENVIRONMENT Acquiring business in a single country has its own challenges, regardless of the nature of business, being constantly under the microscope and c onstantly maneuvering itself according to the trends and the demands of the consumers is directly proportional to profit the company makes. Moreover if the company is multinational, the risks, challenges and the opportunities multiply. In the year 2007, the constant hike in oil prices had a deep impact on the automotive industry; the impact was not only by the changing retail habits of the consumers but also by the pricing pressure from the raw material. Moreover, the industry also faced constantly increasing external pressure from the public transport industry, as the consumers were curtailing private vehicle usage. () The United States of America is one of the worlds largest consumers for light vehicles, passenger cars and light trucks. This segment was dominate by the big three namely the General Motors, Ford Motors and Daimler-Chrysler, which account for about half of total number of cars and trucks in the automotive industry. Holding almost a monopoly in the automobile industry, ironically GM group is going through losses in recent times. PESTEL will be unveiled on the General Motors Company which will consequently give the strategies and the decisions taken. Economic Factors To commence with the economic factors, the whole continent was going through recession in the year 2008 and everybody, right from customers to the raw material suppliers were curtailing there expenses which just made the condition more suffering. This also left a deep impact on the macro-environment which resulted in unemployment. As an automobile industry, besides being a merchandiser, GM group is also a major consumer of various metals, textile, rubber, plastic, vinyl and computer chips. When the business cycle is at the stage of recession known as recovery, it becomes even difficult for the potential customers to keep up with the routine purchasing habits. This means that the customers purchase only the things which are economical and are of absolute importance. The new protocols imposed by the Fiscal Policy Institute (FPI) resulted in a hike on the organization by the government which resulted in the increase of selling prices, thus making the vehicle out of reach of purchase. Inflation as well as deflation marks a straight blow to the cost of products and the services. For instance, if more tax is levied on customers, it implies diminished income which finally results in lower expenditure. All these circumstances directly affect the potential customers to turn away from GM and chose more affordable and economic automotive products. Furthermore, for international markets, the inconsistency in the exchange rate gave others an added advantage. Political Factors Political environment can be inferred as all the aspects of the government which affect the sales and the purchase directly or indirectly, i.e. any one of the aspect affects the functioning of a company positively as well as negatively. The rules of the government have always been against the ignorance of the company towards environmental as well as safety regulations since 1960. The company has been always ignorant towards safety equipments such as seatbelts, airbags, ABS (antilock braking system) and environmental friendly products such as large engines and catalytic converters, with an idea to keep its vehicle notoriously strong, unconventional and pleasurable. But the change in the norms worldwide took a heavy toll on the firm. The world now had new demands and new set of trends which had no place for unsafe and oil gulping engines. Furthermore, the antagonistic image of the president of the United States of America George. W. Bush also led to boycotting of American produced vehicles. This situation intensified with the war between U.S.A and Iraq which resulted in further worsening of the sales figures of General Motor Company throughout the world. But somehow, the new government rules were passed to promote local sales in the country by limiting imports and developing local companies which played a major role in the persistence of GM group through crucial times. Technological Factors As time has progressed, so has technology, which is a dominating factor in the performance of a firm. As a matter of fact, companies should be ready to mould themselves according to the demands of the customers which rapidly changes due to advancements in technology and subsequent transformations in the market. The company not only makes full use of the evolving technology to constantly innovate itself for the cut throat competition by the rivals but also uses it for reaching out to the customers and understanding their needs and comfort better. Technology is also used by the company to reach out to the customers more efficiently through more effective distribution channels. For General Motors Company the technological aspect was analyzed through raw materials. The new improved products made from plastic and fiber glass were not only reliable but at the same time more economical, which is a beneficial step towards both, the merchandiser as well as the consumer. Technology brings in good opportunities I addition to new hurdles too. Another breakthrough where technology benefited the company was with the enrollment of the internet in the systems. Not only could customers place their orders online, but also solve their queries, making the business deals effortless, thanks to the internet. The GM group has found a plan which is long term called as the business-to-business and business-to-customer. There is yet another factor about technology that has resulted in the betterment of GM group; its the perception towards research and development (RD). In recent times companies spend a lot more than earlier times on RD, ensuring total safety, performance and economy to the potential customers. General Motors takes special care about connecting with faithful customers, even after the company has passed its maturity stag e and is now in the reform stage. The company has potential customers who are not volatile and will stick to the brand GM. Social factors Social aspect is also one of the vital contributions for analysis of any firm. The condition is simpler when dealing with a national entity but gets complex when a multinational firm is under consideration, reason being each county has a different perception towards its buying habits depending upon education, requirement and various other features such as urbanization. Social factor has been a boon to GM because the firm is in existence for almost a decade now. It has been a global leader in sales and services for almost seventy years. This is a factor which gives the company its name and status, which is treated with respect and associated with reliability and endurance. Considering the aforementioned positive social factors, the company still had to suffer setbacks due to distinct values and attitude of the consumers and naÃÆ'ĮšÃ‚ ¯ve strategies GM that imposed in some countries. Cutback was the new trend of the customers and GM had to adapt itself to stay in the market. Hence, the bulky and consuming engines had to be replaced with high technology fuel efficient ones such as hybrid. Point out what the challenge/problem was?( this the problem highlighted by the professor) What were its consequences on General Motors? ?( this the problem highlighted by the professor) What did GM do to deal with it in the best possible way? ?( this the problem highlighted by the professor) Conclusion To understand the environment of the General Motors Company in a gist, it is one of the worlds oldest and largest enterprises in automobile business. The firm produces all the big brands of vehicles which are in the dream car list of almost every individual; it enlists Chevrolet, Pontiac, Buick, Cadillac, Hummer, Saab, GMC, Saturn. It shares alliance with Suzuki and Isuzu. GM also shares technologies with the cur rent world leader Toyota and Honda Company. The firm is always known for its exotic cars and setting world standards of driving experience. The vision of GM has always been par comparison and to be a leader in automotive products and associative assistance. Its motto is to provide enthusiasm in customers via endless betterment through reliability, joint effort and innovation of the GM group. For GM to become a world leader in automotive business the firm had to shift on to alternatively fueled automobiles and advanced standard products that makes an impact on international consumers and gives them the assurance that they can associate with quality and innovation. Even though the group is not at its best in recent times globally, one of the greatest advantages is that the company has stayed in the business for almost a century which makes it the worlds most globally experienced group and consequently gives it a cutting edge over the others when expanding globally is considered. Ad ding up to it is the OnStar Satellite Technology installed in vehicles which is helpful in catastrophic conditions like theft. This technology allows the driver of the vehicle to communicate with the OnStar assistance whenever necessary. With so many advantages on its side, GMs average of US $ 701 /vehicle increased to about 108% in the year 2001. Standing tall and dominating over its rivals for a very lengthy period, the rivals have found many loop holes that could e used to take down GM. The main reason for its downfall is the employment structure of GM. The company is still a leader in building revenues but the number of employees are way more than the rivals. One the biggest weakness of GM is investing in the project of hybrid and alternative sources. The company has been doing research for years and blowing up a lot of monetary resources without desirable results. This is the biggest blow which has almost single handedly outcaste GM from the world competition. More over, after liquidation, approximately 67% of the firm is owned by the US treasury department. Hence, they are too dependent on the government which hampers its power to make decisions. Also, the competitors are too strong to focus on just one country. Lastly, considering the topic of poor organization structure again, the association is vertically structured, this being a cause of lack in communication. This directly affects the productivity. . Don’t waste time! Our writers will create an original "Evaluation of pest analysis of the general motors company" essay for you Create order