The Muses free essay sample

The Romans believed in the ancient Muses, the gods of inspiration and talent, descending upon mortals to guide them in writing, painting, sculpting, fighting, you name it, it was a nifty little muse tapping into the human mind. I understand this proposal. The sudden urges one gets to do something, the path to success is not always a thing of design or intention, it just sort of happens. People find what they are nasty at accidentally, of pure fluke, of pure unwonted desire; it is a burning passion to do something that makes absolutely no sense whatsoever. These are the flings of the night. The callings of the deep the inner beast, the inner intelligence, sprung out of nothing towards the elusive something. The muses should be followed, some say. Others maintain that they are things of evil, twisting obsessions that pull you away from responsibility and true devotion to the just causes of the world. We will write a custom essay sample on The Muses or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Suppose for a moment that they could be both, both benevolent and evil muses, the desires that string us along the various pathways of life. Think then on this, emotions drive us to say illogical things, pheromones detail for us the urges of our body. Physical demands to eat, drink, reproduce, raise our young, love our families all guide us in our choices and desires. These are not muses. Muses take on another form of desire all together. These are the desires that allow man to stand out as an individual, as a successful and â€Å"fulfilled† man. We listen to these muses to acquire glory, prestige, fame, the same road to the high pedestal that all fight along. This path is of the evil design. It is structured to distract us from the real meaning, the real understanding. Understanding, of course, is a different stipulation for all of man, and cannot be found in one’s self by reading or learning. It can be helped along, but never fully realized in full effect, the belief and holdings of one’s personal self. So how do we find the good muses? The healthy muse that encourages us to find self identity, the foundation of individual serenity we all must acquire to develop any kind of security, and acceptance on life in our own unique intelligence. Passion can be a hindrance and a rush towards the uncovering of the individual. It is the undefined urgings we should strive to grow, the secret little fascinations that should be opened and watered in full sunlight. Every facet of a humanity can be studied and written, but only the individual can fully realize the muse of serenity on the within.

A Book report on Celia, A Slave essays

A Book report on Celia, A Slave essays Celia, A Slave by Melton A. McLaurin In the book Celia, A Slave by Melton A. McLaurin, the accounts of one womans life are bound together in a vivid way to relay the circumstances surrounding a female slaves cruel life. The life of this woman named Celia was filled with acts of molestation, rape, murder, and eventual execution. Through the use of court records, correspondences, and newspaper accounts, the author delineated in chronological order the life of Celia: from her purchase by Robert Newsom to her execution on December 21, 1855. When Robert Newsom bought Celia from an unnamed person, the first night that he spent with her he raped Celia. This act was repeated numerously throughout the next five years. It is told to the reader that Celia almost certainly was purchased to replace Newsoms wife who had died months earlier. After years of sexual torment and abuse, Celia killed her master and burned his body to avoid being caught. However, she was caught, tried, and executed for her crime. This of course was not the whole story. Many factors come into play when explaining why Celia murdered Robert Newsom and determining the right course of action for her punishment. The factors influencing Celias behavior can be attributed to the years of rape sustained by Celia. In addition to the emotional instability that encourages Celia to murder Newsom is the ultimatum given by Celias lover, George, to quit the old man (30) or risk losing him as a companion. Also, many people had the opportunity to stand up for Celia and stop the abuse, but for personal reasons, those who knew of the crimes chose to remain quiet. All of these factors have the same thing in common: they each present a person or persons dealing with their own personal dilemmas. In the case of Celia, she could stand up to her master and face physical and emotional punishment and possibly death. It was a choice for h...

Film music Essay Example | Topics and Well Written Essays - 750 words

Film music - Essay Example The sounds of chirping birds, barking dog, a man cutting grass with a lawn mower, water being sprinkled from a hose, a man fixing the roof with a hammer making thudding sound are very clear. The sound of Bogs’ brisk footsteps across the zigzag path, carrying her blue bag marks the start of her busy day. The moment she rings the bell of Helen’s house a buzzing sound coming from inside the house disappears. Helen opens the door and Pegg gives her pitch in a bright cheerful tone. The next scene shows a plumber’s van parked outside the house of a lonely housewife, Joyce. There is music in the background. The song is romantic and it seems odd with the morning time. The plumber complains that she didn’t even have to call him to ‘fix’ the dishwasher; she could have taken care of it herself. The woman talks in a very slow sleazy voice as if to seduce the man who is appearing very professional in his tone and voice. The ring of the doorbell ruins her mood as she exclaims ‘who could that be?’ The music keeps playing. The moment she opens the door the sound birds chirping becomes clear again and Pegg starts pitching her Avon products. Joyce continues in her breathy sleepy voice that she isn’t supposed to be there as she was busy. The tapping of her fingernails on the wooden frame of the door is also very clear as she taps it impatiently waiting for Pegg to leave. And the Joyce’s slamming of door stops the song and the scene changes. The grim music from organ piano is played by a lady in one house and Pegg loses her heart and moves towards her car. In the background two children pass on bicycles singing ‘ding dong the Avon Lady!’ to mock Pegg. She gets in her car but the grim organ music keeps playing. She writes off the names of people on her list with a very loud scratching off pen. The moment she adjusts her mirror and sees the castle in it a very grim sounding piano is played in the background, accompanied by strings

Sale of Goods Act 1979 Commercial law (uk) Assignment

Sale of Goods Act 1979 Commercial law (uk) - Assignment Example If one were to adopt the narrow semantic position in this discussion, then one could conceivably argue that The Sale of Goods Act 1979 is more suitable as a commercial code. After all it was created specifically to address itself to commercial transactions between parties. In that these transactions almost always pertain to providing a good for a fee, this type of undertaking in an of themselves can be classified as a commercial transaction. The thrust of the Sale of Goods Act and its intent is to provide a net for all transactions; consumer and business. When one views the Act in its totality, it is readily discernable that it is an interchangeable document. Which attempts to address all of the possibilities which might surface during the course of a transaction. It was through the formulation of contracts that man was able to expand the acts of liaise faire and enter into deals. A contract is formed by agreement between two parties to the contract; the parties must choose to enter into a binding agreement; in a ordinary buyer to seller contract this may entail; the seller agrees to provide the buyer an item at a stated price. The seller (may be implied or explicit) then agrees to deliver the item in a reasonable or merchantable (satisfactory) condition to the buyer. The buyer having agreed with the conditions of the purchase agrees to pay the seller his previously stated price upon delivery of the item.... price upon delivery of the item. This is a bilateral contract, wherein each party has taken on an obligation to do something, in return for something. The promise which has been made by each party makes the "verbal" contract (may be formal or informal), binding. If any term or condition in this legally binding contract is breached by either party, the contract can then be voided. 3 As we find in Baldry v. Marshall [1925]; B owned a racing car but his wife refused to ride in it. He approached M, a car dealer, requesting details of Bugatti cars, about which he (B) knew nothing. He asked for a car that would be comfortable and suitable for touring purposes, and the dealer recommended a Bugatti. B agreed to buy a Bugatti; after inspecting the chassis. Once completed, it was obvious that the car was a racing car and not suitable for touring. He returned the car and sued for one thousand pounds that he had already paid under the contract. The court held; that B had relied upon the skill and judgement of M, and that it was in the course of M's business to supply cars. Hence, there had been a breach of the Sale of Goods Act 1979 S 14 (3). When a purchaser relies upon the skill and judgment of a seller and that seller is acting within the course of his business, then the purposes of S 14 (3), goods must be suitable for the purpose made known to the seller if a breach is to be avoided. Even if the goods are of merchantable (satisfactory) quality; other implied terms must be satisfied. S14 (3) precludes the seller from

Mid Term Exam (there are 4 questions) Scholarship Essay

Mid Term Exam (there are 4 questions) - Scholarship Essay Example The sum of these roles covers all aspects of managerial performance though Mintzberg was careful enough to state that they might not describe the process of managing comprehensively. Mintzberg (1973) defines the role as "a set of certain behavioral rules associated with a concrete organization or post" (p.36) and groups the manager's roles into the three large blocks: interpersonal, informational and decisional. Each of these blocks consists of several roles: Figurehead - involves obligation of manager to act as symbolic head performing many routine duties (social or legal). This role is inspirational and activities associated with it are not central to the manager's job. Leader - involves responsibility for motivating of employees and also staffing, training, development and associated duties. This role is especially important during organization of group: it facilitates adequate integration between organizational goals and individual needs of subordinates. Each of these roles is important and may be viewed as the most essential for a manager under a specific set of circumstances. Therefore, ranking them in order of importance is a very difficult task. One possible way to fulfill this task is to use the existing models of managerial work as the basis. Thus, one of the most popular models of management known as POLCA includes planning, organizing, leading, controlling and assessing (Morgan, 1986). This model suggests that Mintzberg's roles may be ranked as follows: Resource allocator (planning), Liaison (organizing), Leader/Figurehead (leading), and Monitor (controlling and assessing). However, when an organization faces inevitable changes other roles such as Disseminator or Disturbance handler may be more important than others. 2. Managers sometimes make poor decisions because of cognitive bias in their decision-making process. Discuss three of the four sources of bias that can adversely affect the ability of managers to make a good decision, and illustrate each of them with a realistic business decision-making situation. Cognitive biases represent a broad group of observer effects that often distort our perception of phenomena related either to external environment or inner world of human being. There are several categories of

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison Chapter 1: Introduction 1.1- Introduction This chapter discusses the aims and objectives of the project. A detailed background of the study, research rationale and theoretical framework has also been discussed in this chapter. At the end of this chapter, the report structure of this thesis is mentioned. Research Title Islamic Bank of Britain vs. Dubai Islamic Bank (A Comparative Study) 1.2- Background of Study Islamic banking is very different as opposed to conventional banking, as it works on the principles of Islam and Sharia which entails avoiding interest and gives more preference to invest in a business and in sharing of profit and loss. There are several Islamic banks all over the world and all of them operate on the Sharia principles, however some progress to profit and some decline to loss and a prime example of this is the Islamic Bank of Britain. The Islamic bank of Britain was founded in 2004 by a group of Middle East investors. This was the first Islamic Bank in the United Kingdom. The formation of this bank was based on the simple foundation of Sharia conduct with typical products and services, however the bank underperformed, more so than anticipated. Losses were evident from the initiation of its business in the United Kingdom. Moreover, according to Financial times and its 2008 income statement, a loss of was highlighting, displaying major cause for concern. On the other hand, the Dubai Islamic Bank which was founded in UAE by Arabic investors and also adheres to Sharia principles has reported quarterly profit of US$ 122.5 million. This then raises the questions as to why Islamic Bank of Britain has been unable to attract the customers and what are the main factors causing losses for the bank every year. 1.3- Research Aim The aim of conducting this research is to discover the factors and causes troubling Islamic banking in United Kingdom as one of the major Islamic bank has accumulated losses for a considerable period of time, although its entrepreneurs are from the Gulf where Islamic banking has been growing and prospering. Moreover the rules of Sharia apply whether the Islamic Bank is in the UK or in UAE. After uncovering the underlying causes of the Islamic bankings plight in the United Kingdom recommendations will be drawn up to rectify the situation and highlight how improvements can be made. Circumstances will further be examined in form of comparisons between the United Kingdom and the UAE Islamic banks. 1.4- Research Objectives The objectives of this research are as follows: To investigate the performance of Islamic banks in UK and UAE To explore the reasons that affect the performance of Islamic Banks To study the investment portfolio of Islamic Banks in UK and UAE To analyse the impact of risks on the performance of Islamic Banks in UK and UAE 1.5- Research Rationale Islamic banking is a relatively new topic in the financial sector and especially in UK where the first Islamic bank started its business only in 2004. Though Islamic banks are quite successful across the globe, the first Islamic bank established in UK has not been able to gain significant success in the past 5 years. There is currently insufficient research conducted in regards to the performance of Islamic banks in the UK. This fact compels one to investigate this issue in order to gain some strong knowledge about the topic. 1.6- Theoretical Framework This research was designed in a structured format. Initially, a detailed study of literature was conducted. The purpose of this literature review was to gain an insight in regards to Islamic banking functioning across the globe. After reviewing the relevant literature, assessments were made as to how different Islamic banks improve their performance by designing their investment policies and how different type of risks can affect the performance of Islamic banks. This assisted in the analysis of both Dubai Islamic Bank and Islamic Bank of Britain, which further assisted in arriving at a conclusion to determine the reasons of poor performance of Islamic Bank of Britain. 1.7- Structure of Thesis Chapter 2 provides a review from literature which has been distributed into three sections. The first section describes the origin of banking and the main purpose of starting the banking. Second section explains about Islamic banking and its main functions. Chapter 3 discusses the current business operations of both the banks. I have given a detailed description of where both the banks invest their assets and how do they manage the risks. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. Chapter 4 highlights the methodology used in this thesis. A detailed description of the research methods used in thesis has been given in this chapter. All the sources of data used in this thesis have been explained in details and at the end of this chapter; I have given a detailed description of different accounting ratios used in this thesis. In this chapter, I have given a detailed description about the research methods used in this thesis. Chapter 5 comprises of different financial calculations. I have calculated various financial ratios for both the banks in order to do a side by side comparison to find out the reasons of poor performance of Islamic Bank of Britain. Chapter 6 includes a side by side comparison of the financial ratios of both the banks calculated in chapter 5. In addition to this, regression analysis has been given between certain risk ratios and profitability ratios to find out the impact of risk levels on returns. The possible reasons of poor performance of Islamic Bank of Britain in line with literature review and results in chapter 3 have also been discussed in this chapter. Chapter 7 discusses the conclusion of this thesis. All the research questions have been answered in an appropriate manner in line with the literature review and the results discussed in chapter 3, 5 6. At the end of this chapter, I have discussed any limitations of this research work. Chapter 2: Literature Review 2.1- Introduction This chapter provides a review from literature. It has been distributed into three sections. The first section describes about origin of banking and the main purpose of starting the banking. The second section explains Islamic banking and its main functions. Lastly the third section explains the origin of Islamic banking in Dubai and United Kingdom. 2.2- History of Banking The origins of banking are believed to have started after coinage, in the area between river Tigris and river Euphrates. People could keep their belongings safely in royal palaces and holy places. Within same period, some laws were developed and these laws are considered to be one of the earliest forms of laws (Glyn, 2002). 2.3- Banking Business A business that provides financial services to different customers and businesses is called as banking. A detailed definition of banking business can be a financial institution that accepts, collects, transfers, pays, safeguards or lends money for its customers (Sobczak, 1997, pp 6). 2.4- Islamic Banking A financial institution that operates under the principles of Islamic Shariah and it does not accept or pay out any interest (riba) is called an Islamic bank (Sadeque, 1980). Islamic banking is based on the idea of sharing profit and losses. Both the investor and the bank share any profits and losses as agreed at the time of opening the account (Venardos, 2006, pp 1). 2.5- History of Islamic Banking A few decades ago, conventional banks and other financial organisations were not providing the customers with any Shariah compliant services. This led to the necessity of starting such a financial institution that could provide the Muslim clients with the Shariah compliant services. The original Islamic bank initiated business in 1963. During the later years of 1970s, the Association of Islamic banks was established. Initially, Islamic banks were only operating in Islamic countries. In 1980, the first Islamic bank was open in a non-Islamic country and it further expanded into additional European and American countries. Within this short span of time, Islamic banks have progressed very well all over the world (Venardos, 2005, pp 65). 2.6- Services offered by Islamic Banks Islamic banks offer a range of services to their customers. A detailed description of these services is explained below. 2.5.1- Deposit Accounts Islamic banks offer three types of deposit accounts: current, savings and investment accounts. The customers are assured that they can withdraw their money on demand if agreed by both parties at the time of opening the account. In Islamic banking, demand deposits are places in a contract called Wadiah (trust). Islamic banks guarantee their customers to return their principal sum on demand. The banks cannot use this principal sum unless authorised by the customers. As the banks do not use this amount for their investments they do not pay back any profits on such accounts. Some banks offer some returns in the form of Hibah (gift). Islamic banks are using some innovative techniques for offering different products and most of the demand deposit accounts are structured within the contract of Mudharabah (Saeed, 1996, pp 101). 2.5.2- Current Accounts Current or demand deposit accounts are the same as those of conventional banks. Islamic banks guarantee the principal amount on demand (Hassan and Lewis, 2007, pp 131). 2.5.3- Saving Accounts Saving accounts are different from conventional banks in Islamic banking. In some Islamic banks, the depositors authorise the banks to use their deposited money, however they are guaranteed that they will be returned the full amount back from the bank. No profit is guaranteed in this sort of accounts. The banks usually use these deposits for short term projects (Al-Omar and Abdel-Haq, 1996, pp 51). 2.5.4- Investment Accounts Islamic banks accept the investment deposits for a fixed or unlimited time period. The investors agree at the time of opening the account to share any profit and loss at an agreed proportion. The banks do not guarantee to return the principal amount. Usually, the investment deposits have an expected maturity and expected rate of returns. Such investments are places under Mudharabah contract in which both the depositor and the bank agree at a ratio to share any profits or losses. This type of investment is totally different from conventional banks as there is no risk of losing any thing in those investments (Iqbal and Llewellyn, 2002, pp 198). 2.7- Financing modes in Islamic Banking Different banks use different modes to acquire assets and finance different projects. These modes can be distributed into three different areas namely investment, trade and lending services. 2.6.1- Investment Finance Khan (2009) says that Islamic banks can do investment financing in three different ways. First type of investment financing is called as Musharaka. In this type of investment financing, the bank can join another organisation or entity to open a joint venture. Both the parties participate in this venture in different roles. Both the parties agree on a set ratio of sharing any loss or profit before making such a venture. This type of venture is an independent entity and the bank can withdraw from this venture after an initial period. Second type of investment financing is called as Mudarabha in which the bank finances the projects and the clients provide with their expertise, labour and management. Both the parties i.e. bank and the clients share the profit but in case of any losses, its only the bank that will bear the losses. In third type of investment financing, the banks finance on the basis of an expected rate of return. If the profits are more than the expected rate of return, t he bank shares it with the clients but if the returns are lower than the expected rate, the bank will accept the lower rates. In case of any losses, the bank will share it (Khan, 2009). 2.6.2- Trade Finance Khan (2009) says that Islamic banks can do trade financing in different ways. The most common type of trade financing is called as Mark-up in which the bank buys an item for its client and the client agrees to pay back the bank the price and the agreed profit at later stage. In second type of trade financing, the bank buys an item for the client and then leases it to client for an agreed time period. At the end of the lease, the client pays the balance amount to the bank and becomes the owner of the item. Another type of trade financing is called as hire-purchase in which, the bank buys an item for its client and then hires it to the client for an agreed time period. At the end of this time period, the client becomes the owner automatically. Another type of trade finance in Islamic banking is called as sell-and-buy-back in which a client sells his property to the bank for an agreed time period at a condition that the client will buy back the property at an agreed rate. 2.6.3- Trade Finance Khan (2009) says that Islamic banks have different types of lending services including loans, no-cost-loans and overdrafts. Islamic banks offer the loans by charging the service charge. The bank does not charge any interest but they apply service charges to cover their expenses. Some Islamic banks offer the loans to needy people at no costs. Some Islamic banks also offer the overdraft services to the customers subject to some limits. The banks charge a certain amount if the customers request higher overdraft limits. 2.6.4- Miscellaneous Services Islamic banks offer additional services such as collecting the bills on behalf of different organisations, money transfers, trading foreign currency etc. Some banks charge a commission amount if their own money is not involved in such transactions. 2.8- Risks in Islamic Banking Khan (2003, pp 130-131) says that Islamic banking faces certain risks like conventional banking. The nature of these risks varies with the structure of the bank. As discussed earlier, Islamic banks usually operate under two different kinds of models. First type of model is known as the two tier Mudarabah model. This type of model operates under the principle of sharing both the profits and losses. The latter model is known as the single tier Mudarabah model. In this type of model, both the parties share the profit just on the liabilities side. Lewis and Hassan (2007, pp 144) say that Islamic banks have to follow certain rules based on Islamic Shariah. Both the authors believe that in this kind of situation, the nature of risk changes for Islamic banks and only a careful management of these risks can result in the better performance of the bank. Islamic banks face following risks: Operational Risks Credit Risks Liquidity Risks Withdrawal Risks Legal Risks 2.7.1- Operational Risks El-Hawary (2005, pp 21) says that this type of risk is caused when the people working for the bank fail to perform their duties appropriately or the systems used by the bank staff fail. Most of the time, this risk is caused due to the employees of the bank or any frauds. El-Hawary (2005, pp 21,22) has quoted the example of Dubai Islamic bank when the bank suffered huge losses due to an incompetent person during the later years of 1990s. Iqbal et al (1998) considers that the Islamic banks face more operational risk than conventional banks as a minor problem in computer systems can cost them too much. 2.7.2- Credit Risk Sundrarajan and Errico (2002, pp 5) believe that Islamic banks administer the profit loss accounts differently from conventional banks. Islamic banks determine the profit and loss ratios of different projects before the start of any agreement. On the basis of this expectation, Islamic banks set a share ratio that sometimes can cause them losses. In addition to this, Islamic banks carry on auditing the financial projects. In such situations, it becomes very difficult for the banks to standardise their financial products. Cihak and Hesse (2008, pp 5) believe that in PLS (Profit and loss sharing) accounts, the banks suffer losses as well if the profits are lower or the project ends in a loss. They believe that this is due to the reduced level of assets in the balance sheet. Sundrarajan and Errico (2002, pp 5) believe that in Mudarabah accounts, the banks can only share the profits but if the business ends up in loss, it becomes very difficult for the bank to recover the loans back due t o some legal complications as the Mudarabah accounts do not allow the Islamic banks to interfere in the business. On the other hand, in the case of Musharaka account, Islamic banks can monitor the financed projects and it reduces the risk levels significantly. 2.7.3- Legal Risk Haiwad (2008) says that Islamic banks have different kind of legal documents. He considers that due to compulsion of Islamic accounts to be Shariah compliant, the banks need to prepare a complex set of legal documents. In addition to this, the banks need to consider the local laws of the country as well before making any legal documents. Sometimes, it is very complicated to develop the legal documents that comply with both the Shariah law and the local law of the country. It ultimately increases the legal risk levels in the Islamic banks. 2.7.4- Liquidity Risk Aburime (2009) says that Islamic banks face the liquidity risk when the banks fail to sell their fixed assets at the desired rates. The banks usually develop the need to sell their fixed assets to meet their liabilities. This risk is increased due to the fact that Islamic banks do not accept any loans on interest so the Islamic banks are unable to come out of this situation by taking loans from other banks. Aburime (2009) considers that this risk is dependent on the economy of the country. The destabilisation of economy increases liquidity risk. 2.7.5- Withdrawal Risk Aburime (2009) says that sometimes, Islamic banks do not provide the customers with handsome amount of profits and it can lead to the customers withdrawing their money from the bank. In such situations, withdrawal risk is increased significantly. Aburime (2009) believes that this risk is more in Islamic banks as compared to the conventional banks. 2.9- Do Risk Levels affect Performance? Mencia (2009) says that a business can produce more money if there is greater risk at the start of the business provided the risks are managed appropriately. Kunt et al. (2009) says that those banks that generate income without any interests are at greater risks and can give better returns as compared to those that generate interest money. Haque and Mirakhor (2006) say that in Islamic banks, customers are at greater risk to lose their money and the banks are at lesser risk as Islamic banks do not guarantee any return at the time of account opening and in few accounts both profit and loss are shared. This fact can deter customers, leading them to invest their money in those banks where they do not have any risk to lose their money. Shim et al. (2000, pp 176, 177) has suggested that the extent of financing the business through debts is a useful indicator of risk levels in the business. They believe that if a business is financed more through debts, it is at higher risk. Helfert (2001, pp 128) has also same beliefs as that of Shim et al. (2000, pp 176, 177). He considers that financing the business through debts increases risks but at the same time it increases the probability of better returns as well. Falkenstein (2009) conducted research to explore the effects of risk levels on the returns of different businesses. His research results showed that the businesses that used more debts to finance their assets were at higher risk as compared to those that did not finance their assets through debts. The businesses that were at higher risk and that managed their risks appropriately produced better returns than those that were at lower risks. 2.10- Effective Risk Management in Islamic Banks Management of different types of risks is very different from conventional banks and due to some restrictions of Shariah laws it is very difficult to manage these risks. Effective credit risk management is a very complex procedure in Islamic banks as there is no permission of paying or receiving any interest. In addition to this, Sharias law does not allow to penalise the clients and this facility in Islamic banks is misused by some clients. In such situations, there are long delays in paying back the principal amount and it reduces the assets of the bank. Most of the Islamic banks use collaterals and take pledges from their clients. The best way to avoid the misuse of the facilities provides by Islamic banks, the banks can take more collateral before the start of different contracts. In addition to this, if the banks take personal guarantees before sanctioning the loans, it can help in reducing credit risk as well (Hawray et al., 2004). Shariah law forbids dealing harshly with those people that are in bad financial crisis. This facility can be misused by the clients. This issue costs the Islamic banks and it should be taken seriously. A comprehensive system to credit score each client before offering them the loan can make a huge difference. Furthermore, the banks should ask the clients to sign on possible enforcement as within Islamic law a person can be enforced if he has signed before the start of the contract. In addition to this, Islamic banks working in United Kingdom can think about legal actions against those that were unable to pay back the loans (Wilson, 2007). The nature of legal risks is very different in Islamic banks as compared to conventional banks as Islamic banks have to fulfil the requirements of both Shariah laws and local laws of the country they operate in. This makes the Islamic banking operations very complicated and legal risks are increased. The best way to come out of such situations is to make sure that prior to writing the contracts, requirements of local legislations are fulfilled as well. This can aid the banks in developing good knowledge about the possible ways of enforcement if a client fails to repay his loan. In Sharia law it is allowed to enforce those clients that file false claims. Bearing this fact in mind, Islamic banks should consider including this in the contracts. This will help the Islamic banks to reduce legal, liquidity and withdrawal risk as people will not attempt to misuse the lenient system (Djojosugito, 2008). 2.11- Diversification in Islamic Banks The banks that provide diverse financial services or spreading different risks into different geographic areas are likely to achieve improved diversification. In the case of Islamic banks, geographical diversification helps in breaking the banks concentration in limited areas and the bank usually gets good borrowers. (Greuning and Iqbal, 2008, p 264). Islamic banks mostly deal in the real estate business and most of these banks start their business from their regions and carry on working in that region. The real estate business has suffered huge losses in the past few years due to the effects of recession and interest rate variations across the globe. Due to this fact the investments in real estate have not proved very fruitful for such organisations. In order to gain good profits, Islamic banks need to diversify into different sectors and geographic areas as it will diversify the investments and the risks can be spread across different areas where the banks can get good borrowers and good investment opportunities (Islamic Investment Banking, 2009). There are different sectors that can prove beneficial for Islamic banks. The most important sector for diversification in Islamic banks is Insurance (Takaful). This sector is highly under developed even in big Islamic countries such as Malaysia where this sector is not developed much. Concentrating on this sector can prove very beneficial for Islamic banks (Thomas, KPMG.COM). Expansion of Islamic banks across different countries can prove to be very beneficial for them. Currently, Islamic banks are working in a lot of countries but their business size is very small. If these banks diversify into different zones of the world, it is inevitable to attain benefits. Furthermore, Islamic banks can consider to make strategic alliances with those conventional banks that wish to start Islamic banking as it will not only increase the size of Islamic banks but will help in obtaining a diverse work force as well. Finally, Islamic banks can get diverse competent staff that can help in improving different systems and it will ultimately result in reduced operational risks (Iqbal et al., 1998). Making of strategic alliances with other banks that wish to start Islamic banking will also help in reducing the liquidity risk. Making strategic alliances will help Islamic banks to increase their assets and the current assets level of Islamic banks will increase. This will help the Islamic banks to pay current liabilities and liquidity will be improved. Furthermore, strategic alliances will increase peoples trust in Islamic banks and the level of investments will be increased that will ultimately increase current assets and better liquidity of the banks (Iqbal et al., 1998). Chapter 3: Business Cases 3.1- Introduction This chapter will provide an overview of the current business operations of both the banks. Detailed descriptions of where both the banks invest their assets and how they manage the risks will follow. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. 3.2- Islamic Bank of Britain Islamic Bank of Britain started its business in UK in September 2004. This bank is the first Islamic Bank that started its business in UK. The bank is approved by FSA (Financial Services Authority). 3.2.1- Shareholders The bank has 10 major shareholders holding different levels of share in the bank. The biggest shareholder of the bank is Al Amal Investment and Trading that holds 52% of the total shares of the bank. IIB European Investment Company is the second major shareholder of the bank and it holds 10% shares of the bank. BNP Paribas Bahrain holds 8% of the shares; Mr. Al Rajhi holds 7% of the shares. The remaining 23% shares are owned by 6 other shareholders. 3.2.2- Investments The bank comprises of a board of directors and it is their responsibility to decide upon the investments. Most of the time, the bank invests its money in buying different properties, costly metals, different currencies etc. The bank mostly concentrates in buying the properties in United Kingdom. The board of directors decides all these matters in such a way that can be beneficial for its investors. 3.2.3- Services offered by the Bank The bank offers three main types of services to its clients Personal Business Premier 3.2.3-1. Personal Services In personal services, the bank offers current accounts, saving accounts and home purchase plans to its customers. In addition to this, the bank also offers personal finance to its customers. 3.2.3-2. Business Services In business services, the bank offers its clients business current, business savings, business finance, charity accounts and commercial property finance. 3.2.3-3. Premier Services The bank offers this service to those clients that are highly paid (at least  £100,000 per annum) and to those who can deposit more than  £75,000 in their account with a view to purchasing property in the UK that is worth more than  £250,000. 3.2.4- Risk Management in the Bank Islamic Bank of Britain manages its risks in a systematic way. Board of directors has the responsibility of managing the risks with the help of some committees assisting them. They have some written policies to manage the risks that are reviewed on a regular basis by an audit committee that is responsible to measure the risk levels and start the risk management after a certain risk threshold. The bank faces credit risk, liquidity risk, market risk and operational risk. A brief description of risk management is given below. 3.2.4-1. Credit Risk Management The bank has a systematic approach to manage the credit risk. To manage this risk certain producures are put into place such as the following: The bank makes credit policies The bank sets credit limits after assessing the profile of each borrower Credit risk assessment before start of agreement Collaterals for a few loans but in most accounts the bank does not ask for any collateral 3.2.4-2. Liquidity Risk Management The treasury department of Islamic Bank of Britain is responsible to manage liquidity risk. The bank uses following steps to manage liquidity risk; The treasury department maintains a portfolio of short term assets that can be liquefied. Comparison of liquid assets with asset maturity against any customer deposits Submission of any mismatches in liquid assets and asset maturity to financial services authority on quarterly basis 3.2.4-3. Market Risk Management The bank has a systematic approach to manage the market risk. To manage risks, the following procedures are adhered to: Profit rates for few accounts are agreed at the time of agreement start. Maturity profiles are constantly reviewed. Rates are agreed on a monthly basis for consumer finance transactions. Long term home purchase plans and commercial property finance are benchmarked against market measure. Process is assessed every six months. Profit rates on Mudaraba account are reviewed every month. 3.2.4-4. Operational Risk Management The bank has a systematic approach to manage the market risk. The board of directors of the bank is responsible to manage the operational risks. There are some risk committees that manage this risk under the guideline of the board of directors. The purpose of operational risk management is to implement such a system that can support the process efficiency and meeting the customer needs. To manage this risk the following procedure is respected: The bank aims to manage this risk by cutting down the costs on certain things. Getting reports from risk committees over regular periods of time 3.3- Dubai Islamic Bank Dubai Islamic Bank was formed in 1975 and is considered to be the first fully-fledged Islamic Bank in the world. The bank uses the latest innovative technology in its day-to-day operations. The bank is considered to be the undisputed leader in the field of Islamic banking and sets its examples for new starters in Islamic banking. A lot of Islamic banks in the world including Arab countries follow Dubai Islamic Bank to start and run their day-to-day operations (http://www.alislami.ae/en/index.htm). 3.3.1- Shareholders The Government of Dubai is the major shareholder of the bank and other shares are held by additional stakeholders in Dubai. 3.3.2- Investments The bank invests its money all over the world and is open to any businesses that require financing through the bank. The bank invests in properties, c

Nature and Procreation in Blue Highways Essay -- Blue Highways

Nature and Procreation in Blue Highways In the book of a rustic American journey, Blue Highways, William Least Heat Moon continually characterizes the land he travels with simple, natural references. Least Heat Moon repeatedly gives the nature he discovers on his journey very fertile, prolific qualities. The essays often contains vivid physical descriptions of the environment, particularly its natural beauty. Least Heat Moon ponders human existence and its interference with the environment. The themes of natural beauty and fertility repeatedly surface throughout Least Heat Moon's account of his journey around America. In several descriptions of nature throughout the book, William Least Heat Moon portrays the wilderness he finds with extremely basic, reproductive traits. The themes of procreation and fertility in the natural environment surround him. For example, in his description of a swamp environment, Least Heat Moon writes, In the muck pollywogs were starting to squirm. It was spring here, and juices were getting up in the stalks...water bubbled with the froth of ...

Cleanliness Champions

Hand Decontamination With the outbreak of antibiotic resilient infections, infection control is becoming a major concern for health groups all over the world (WHO, 2011). The risk of infection can be reduced by using three types of hand washing known as social, hygienic and surgical methods (HAI, 2011). Social hand washing is a useful method for removing dirt and transient micro-organisms. Using soap or an alcohol-based gel if hands are not soiled, vigorously clean your hands using the eight stages of hand-washing.This can stop transmission of the transient micro-organisms when in direct contact with patients (NHS, 2009). Alcohol-based hand rubs or gels should not be used alone when infection is present as this alone will not kill the spores for infection such as clostridium difficile. After washing hands must be dried properly as failure to do this can increase the transfer of bacteria (Nottingham University Hospitals, 2011). Hygienic hygiene not only removes transient microorganism s but also reduces resident microorganisms.This is used when preparing to work in a sterile environment, during an outbreak situation or following contact with bodily fluids. Use an antiseptic hand cleanser when washing and vigorously follow the eight steps of hand-washing. After drying properly then apply an alcohol-based hand rub and repeat the eight stages (NHS, 2011). Surgical scrubbing is a longer and more thorough antiseptic wash of both the hands and forearms. Before a surgical procedure this method is designed to remove as many of the micro-organisms as possible.It involves systematic washing and scrubbing of the hands and forearms using the most effective antibacterial cleansing agent available. Sterile gown and glove procedures are performed following the surgical scrub (NHS, 2010). Effective hand washing can break the chain of infection which is known as: the infectious agent, reservoir, portal of exit, mode of transmission, portal of entry and host. If the chain remains intact then infection will develop, therefore, nurses must wash their hands before, during and after ontact with a patient and their environment. This will consequently stop the infection progressing while ensuring micro-organisms do not build up in the environment. Direct and indirect contact transmission involves contact with a contaminated object which may be unwashed hands or gloves that are not changed between patients (HAI, 2011). One of the main principles of good hygiene is the use of personal protective equipment as this forms a skin barrier. It is important to ensure the equipment is intact and decontaminated.The decision to use or wear personal protective equipment must be based on risk assessment associated with the patient care activity or intervention. Personal protective equipment includes: gloves, masks, eyewear, caps, gowns, aprons and other items (HAI, 2011). The Healthcare Associated Infection (HAI) advises that gloves be worn whenever there is a reasonable likeli hood that hands will be in contact with blood or other potentially infectious material, mucous, non-intact skin or when handling contaminated items or surfaces.The safe use and disposal of sharps is essential in protecting each and every individual from contamination and injury. The sharps bin can be used to dispose of medical supplies such as needles and syringes. After the use of needles they must be immediately disposed of in the sharps bin (NHS, 2011). All healthcare workers must be aware of their responsibility in avoiding needle stick injuries (NHS, 2007).

‘Anthem for doomed youth’ by Wilfred Owen Essays

‘Anthem for doomed youth’ by Wilfred Owen Essays ‘Anthem for doomed youth’ by Wilfred Owen Paper ‘Anthem for doomed youth’ by Wilfred Owen Paper Essay Topic: Anthem Poetry The poem ‘Anthem for doomed youth’ by Wilfred Owen is based on the massacre during World War 1. It is a Petrarchan sonnet that deals with the horror faced by adolescent soldiers and questions the real motif behind the wars. By questioning the funeral procedures of dead soldiers and contrasting it with the funerals of normal people, Owen expresses his disapproval and anger towards the war. It very effectively brings out the horrific scenes of the wars by using metaphors, alliteration, personification and rhetorical questions, all which bring out the futility of young soldiers dying and the insignificant funeral services carried for them. The title itself is very ambiguous. Usually, an anthem is a commemoration for someone who has passed away, but the juxtaposition with ‘doomed’ shows the ill fate that the ‘youth’ is accustomed to. A negative vibe is created from the very beginning. The use of assonance in ‘doomed youth’ with repeated vowels gives the poem a despairing and disdainful tone. The poem basically focuses on the pointlessness of war due to the immense fatality it causes. The tone is somber and morose. The poet makes use of a variety of techniques such as internal lines. e. g. – the repetition of ‘sh’ in ‘Shall shine’ and of g in ‘glimmers of goodbyes’. Owen very effectively uses sounds to mirror his emotions. The poet uses very descriptive language and enhances it with rhetorical questions and juxtaposition. The rhyme is abab cdcd efgg. Poet uses present tense to show it is a recent and immediate topic. The first stanza is slow paced with the use of a lot of punctuations. The octet focuses on the happenings of the battlefield and the circumstances under which the young soldiers die. It also particularly deals with the sound on the battlefield. The first line of the stanza itself is a rhetorical question, where Owen questions the death of soldiers. The death of the soldiers is metaphorically compared to that of ‘cattle’, which shows that how the cattle is slaughtered in the same way huge numbers of soldiers are made to fight in battles and sacrifice their lives. They are commemorated by the sound of ‘the monstrous anger of the guns’. An inanimate object like a gun is shown to ‘feel anger’ at scenes of the war, and hence shows that if an inanimate object can see the uselessness of war, mankind too, should. With the use of pathetic fallacy, the reader very effectively conveys this message. The use of ‘only’ creates the effect that the sounds are not enough to compensate for the deaths. Further this image is extended by the use of ‘no prayers nor bells’ that emphasizes on what the soldiers do not have. The only prayer said is one of ‘hasty orisons’, which shows religion failing to put an end to this. Owen introduces the idea of how religion in the form of ‘bells’ and ‘prayers’ is like a ‘mockery’ because the deaths are so many and so uncalled for that religion also cant do much to compensate for it. The last line of the octave introduces a new idea about the background that the soldiers come from and shows how deep the sorrow is of the loss. The first stanza has a lot of auditory images that help to visualize the terror and trauma in the battlefield. Words like ‘stuttering rifles rapid rattle’, and ‘monstrous anger of the guns’ helps the reader to visualize the unpleasant and cacophony during the war. The alliteration in ‘ stuttering rifles rapid rattle’ shows the constant firing of bullets and the repetition of ‘r’ shows the frequency of deaths. Also by contrasting such violent sounds with that of ‘choirs’ and ‘prayers’, the poet highlights how the funeral ceremonies for such martyrs is so different to that of a normal dead person. Further the idea of the funeral procedures of dead soldiers being contrasting to that of a traditional one is present throughout the poem. The title itself holds evidence for this. In a traditional ceremony an ‘anthem’ is played in remembrance for the dead soldiers, whereas for soldiers it is ‘all doomed’ and there is a dark future ahead. In a traditional ceremony, church ‘bells’ announce the death, however, in the case of soldiers it is ‘gunfire’. In the octet, the weapons of destruction such as ‘guns’, ‘rifles’, ‘shells’ and contrasts it with religious imagery such as ‘orisons’, ‘bells’ and ‘prayers’. On one hand where there are prayers for the deceased, on the other hand, there is just ‘rifle fire’ where more and more youngsters lose their lives. This brings out the aspect of how menial the lives of the soldiers are. In religious funerals, there are choirs singing sweet songs, while soldiers on the battlefield have to settle for ‘demented choirs of wailing shells (explosives)’. Moreover, the soldiers don’t even have a ‘pall’ to cover their dead body with; they have just the ‘pallor’ that is the pale face of their loved ones. Flowers usually given at funerals as a token of love and sorrow are not present at the deathbed of soldiers, they just sorrowful thoughts of their family for that. Antithesis is used to create a stark contrast between what the soldier’s lives could have turned out if they hadn’t died in war conditions. The sestet focuses on the aftermath of the death of the soldiers and the quiet mourning of the loved ones. The poet once again begins the stanza with a rhetorical question – ‘what candles may be held to speed them all’. ‘Candles’ are usually placed in church as a mark of remembrance for the dead. Here it could imply that there is still hope for change. Instead of having candles to guide them in their afterlife, all the soldiers would have is ‘holy glimmers’, exchange of looks in the soldier’s eyes. One more thing the soldiers’ death ceremony will lack is that of a ‘pall’ to cover their bodies. The ‘pall’ is metaphorically compared to the paleness on the girl’s faces that will be evident in their sulking ‘brows’. The last line of the sestet is very powerful. As dusk marks the end of light, ‘each slow dusk’ will mark the death of the martyrs and the end of their struggle. he night marks respect to the soldiers, whereas ‘drawing down of blinds’ usually takes place in the room with the coffin as a symbol of respect. The long vowel sounds in the last line shows how the memory of the soldiers will remain etched in the memory of the poet for the courageous tasks they have undertaken. Thus it throws light upon how first the soldiers sacrifice their lives for the country, and even after that they don’t get a proper funeral as a token for respect in fact they get to witness more and more of their colleagues dying instead.. Thus the poet targets the uselessness of war in being unfruitful and creates vivid images with the use of auditory and visual images. It very successfully depicts how the youth, the generation of the future has a very dark life ahead if war continues to brutally end their lives. The poem leaves the reader with a sense of shock by exposing the horrific battlefield images and fills us with sympathy for the many who lost their lives.

The Biological Importance of Water Essay

The Biological Importance of Water Essay The Biological Importance of Water Essay The Biological Importance of Water Water is essential to us humans and all other living organisms, without it life on Earth would not exist. Water as a molecule is quite peculiar and it is its unusual properties that give it the ability to sustain life. Water has the molecular formula of H2O, this means that there are two Hydrogen atoms (H) and one oxygen atom (O). The water molecules layout could be described as a Mickey Mouse head; the face being the oxygen molecule and the ears being the hydrogen molecules. Water is a dipolar molecule this means that one end is slightly positively charged (the hydrogen) and the other is slightly negatively charged (the oxygen), because of the dipolar charges water molecules attract each other, and this is called cohesion. Cohesion is when the oxygen atom of one water molecule forms a hydrogen bond with the hydrogen atom of another water molecule (opposite charges attract), cohesion can also occur between other molecules of similar substances. Water molecules on the surface of the water form hydrogen bonds with the surrounding water molecules but not with the molecules in the air, the unequal distribution of bonds enables the water to form a force called surface tension, this causes the water to form a sort of tough ‘skin’. This is important because it keeps the water as a singular body, protecting itself from disruption. It can also be important for insects, such as pond skaters, and other life forms, such as birds, because it enables them to sit on the surface of the water. Water can also form hydrogen bonds with polar substances; this is why water feels ‘wet’. The water molecules actually stick to other molecules with hydrogen bonds, causing a thin layer of water to form on the surface of a material, but because of the cohesion force the water never forms a flat layer. The molecules stick to each other to form circular drops called ‘droplets’. When oil is mixed with water, because of it non-polar properties it does not dissolve, it simply sits on the surface in a droplet, it does this because the oil is cohesive to itself and less dense than water. These bonds are weak and so the water can easily move and break away from the material, this intermolecular bonding is known as adhesion. This ‘sticky’ property enables water to move, unbroken, up the xylem tissue of plants up to the leaves to be used in photosynthesis. Photosynthesis is a process that plants us to turn water and carbon dioxide into glucose and oxygen ( 6H2O + 6CO2 - C6H12O6 + 6O2). This process is essential for the plants to have energy and for the production of oxygen, which is essential for other organisms in allowing them to perform the process of respiration. Water is also essential for other biochemical reactions such as peptide bonding for protein formation, without proteins life would not exist. Proteins perform the majority of functions within a living organism, for example; catalyzing metabolic reactions, responding to stimuli, replicating DNA and transporting molecules from one location to another. Water forms the peptide bonds that hold the amino acids together to form proteins such as enzymes. Enzymes are biological catalysts, they depend on water to reach their substrates and bind to them. There is no enzymatic activity without water. In addition, enzymes depend on sufficient pH interval to work and the pH is a consequence of the delivery of hydrogen cations (H+) and hydroxyl anions (OH-) by acids and bases in water solution. Water is also essential in living organisms because it is a universal solvent, this means that the majority of solutes (polar and ionic substances), are attracted by the waters charges and break down in the water to form a solution. If the substance can dissolve in the water they are known as hydrophilic and non-polar substances that won’t dissolve are known as hydrophobic. Biologically, the solvent properties of water are essential because this means that the water can transport

Business Environment Essay Example | Topics and Well Written Essays - 1250 words - 1

Business Environment - Essay Example The UK has a rising level of its output being exported across borders and overseas and it is an open economy (Holden et al, 1995, p.44). It is at present number eight as the largest exporter in the world for goods and number two in being the largest exporter for services. It also has highest ratio of outward as well as inward investment to the GDP among any of the leading economies in the terms of capital flow. Inevitably the pattern as well as the balance of trade of goods and services changes over the time, this is reflection of movement in the relative prices of different traded goods as well as the shifts in the comparative advantage in various global markets. Other factors that affect the trade pattern are decisions of foreign investment of the UK as well as overseas companies and economic development and growth of countries, regions etc. Major part of UK’s trade of goods and services is carried with the countries that are part of European Union. Since UK became a part of EEC in January, 1973 there has been long term shift in its trade with the European Union. The trade growth has been pushed by single market; this has led to trade diversion and the trade creation effects (Aylott, 2007, p.4) Trade of UK with the countries in North American region has declined, although the U.S still is the largest single market for exported UK goods after EU (Great Britain Department for Business, Innovation and Skills, 2011) , comprising of 15% of the total exports of UK. Over the previous 15 years trade with the countries that are oil exporters has declined in its relative importance. In the year 1979 percentage of UK’s exports which went to these countries was 10%, which is now only a small percentage of a little over 3%. Apart from the exports the imports from this oil exporting countries has also fallen. Another important change in UK’s pattern regarding trade in geographical sense is its rising share of trade with the fast growing and emerging ec onomies in Asian region. These include Malaysia, China, South Korea, Thailand, Singapore and Taiwan. The rate of growth in Indian economy is also probable to help boosting exports to sub-continent in future years; this provides businesses in the UK to grab export opportunities in this region. Analyse the impact of global factors on UK business organisations International trade is crucial for the UK, like any other country. If the UK did not participate in international trade, it would not be able to acquire many different materials that are needed to produce products that are used every day, especially concerning food industry. Cold climate in UK makes it rely on other countries with hotter climate to import fruits like mangoes and bananas which don’t grow domestically, similarly the countries with hot climate rely on countries like UK for vegetables like potatoes to import (in UK’s case, export). If international trade did not exist people in UK and everywhere else ac ross the globe will have very limited choices, and business will not have enough markets to expand. There are various global factors that would affect the business

Applied Strategic Management Speech or Presentation

Applied Strategic Management - Speech or Presentation Example It is alleged that the main problem was complacency in the area of management and absurd demands from the UAW, for instance, the Jobs Bank paid workers around 95% of their previous wages until the organization found them a job and the management was reluctant to solve the problems (Ingrassia 87). It is alleged that one thing that the General Motors did right was to lead Detroit in establishing a joint venture with the Japanese companies that helped Ford and Chrysler to equally engage into partnerships. Consequently, they were able to see first hand how the Japanese worked to ensure a competitive advantage. During this period, they learned that the Japanese registered higher profits because they kept their inventories lean, did not keep the store weeks’ worth of parts at great costs unlike the Detroit, and practiced just in time delivery to ensure timely supply of the materials. Moreover, unlike Detroit, the Japanese motivated their workers by rewarding them. Consequently, this gave them a competitive edge (Ingrassia 78-79). Despite what the three big companies learnt from the Japanese, they failed miserably during the recession period that saw competition heighten. Between 1979 and 1982, Chrysler and Ford lost around $ 5billion, while the General Motors lost $763 million. Consequently, other people were affected, like in the case of the employees whereby, around 250,000 of them got fired (Ingrassia 80) It is argued that people panic when gas prices go up to an extent of vowing to drive less and to purchase vehicles with better mileage. However, when the gas prices go down, the people go back to their old behavior as well as the actions that had initially created a market for big trucks and SUV’S. For instance in the 1980s, when the gas prices started to drop, Americans started buying the big cars just like before (Ingrassia 85). It is claimed that organizations end up selling their jets during unstable economic times and even buy better models onc e the risks are over. Additionally, the unions end up giving wage benefits and hikes only to realize that the management has heightened their bonuses and the retirement figures (Ingrassia 88-92). Consequently, this creates conflicts and long term hatred; hence, destroying all efforts to have a collaborative partnership that is required to have an effective and a successful organization. Various reasons have been linked to the challenges that faced the ‘big three’. For instance, after the US engaged in the Persian Gulf War, the economic recession heightened as the sale of cars dropped. During this period, General Motors lost around $2 billion. Instead of correcting the situation, the company ended up coming up with rigorous management strategies such as layoffs followed by plant closings. Subsequently, the company went into bankruptcy following the poor management by the CEO, Stempel. As a result of poor management and lack of rational changes, GM, Chrysler, and Ford con tinued to record more losses. The companies tried to reorganize, diversify and form joint ventures with no success. The Japanese companies such as Toyota, Nissan, and Honda, on the other hand, continued to expand and register higher profits than that of Detroit as they launched new brands such as Acura and Lexus