Industrial revoloution Essay

How bad were the living conditions for the poor in the newly industrialised towns and cities of the 1840s In the 1840s, there was a lot of pollution, and there was little regulation of what was put into the river or the air. The houses for 1840s workers were built very poorly. They were usually made by the factory owners at minimum cost. They were made either one brick, or half a brick thick, and only consisted of one room. There were no indoor lavatories, therefore the workers were left with only two ways to go to the toilet. The first way was to walk up the road and use the toilets at either end of the blocks. Once there they would deposit their body waste into the cess pool via a wooden bench. Flies lived on the walls of the cess pool. They were nourished by the molecules of excretion in the air. There toilets would be shared by as many as 160 people, sometimes more. The cess pool would empty itself into the river, but sometimes market gardeners who would go down into the cess pit to use the filth inside as fertiliser for their garden. Occasionally, young children would drop into the cess pit, never to be seen again. The second way of going to the toilet was to simply do it out of a window. The body waste which was left on the streets was called night mud. Sometimes when it rained, the night mud would slip underneath your door and end up in your house. Sometimes the night mud would be placed in your house on purpose by people being malicious. People did not have the type of water supply we have today. They did not have instant running water in their houses, instead they had to collect their water from standpipes in the street. These standpipes had clean water which could be pumped out, as it wasn’t safe to drink from the river, but water only came to a street, via these standpipes, every other day. Yet, there were also water seller who would sell bottles of supposedly, clean water, although no one ever found out where the water came from. People in the 1840’s were afraid to leave their houses for an extended period  of time. The reason for this is that as soon as you leave you house for over a day, it would be used as a toilet. This meant that people who got new jobs in factories would have to clean out there new houses of all of the muck left there by their fellow workers. In the 1840s, living conditions were much worse than nowadays, due to the lack of both appropriate sanitary provisions and constant running water, but people of 1840’s would have found those conditions normal. What we think of as clean would have probably been considered impossible in those days.

The Change of Video From Analog to the Digital

DVD is an exciting new technology because of the following benefits: up to nine hours of studio-quality video and multiple channel surround sound simultaneous multiple language support and interactivity other digital video delivery systems, including direct broadcast satellite, wireless cable and digital cable Digital video changes all aspects of video production. Up to this point video has been recorded and transmitted as analog electrical system. Analog video transmitters and receivers can be built inexpensively but are very expensive to transmit and store. Also, today ¡s strong digital computers cannot process analog signals, so analog information cannot be easily searched, sorted or edited. The change of video from the analog to the digital domain changes everything. Digital video can be stored and distributed more inexpensively than analog, and digital video can be stored on randomly accessible media such as a magnetic disk drive (hard discs), and optical disc media (CDs). When stored on randomly accessible media, video can be used in other applications such as games, education, training, and other applications. Even movies can become interactive, allowing viewers to select their point of view, a plot path and the ending. Digital video also significantly increases transmission efficiency so that communications networks, everything from television systems to telecommunication satellites, are able to carry from six to ten times more channels of video programming than was possible before, thereby offering more consumer choice. The ability to transmit video over the public phone network will also allow video conferencing, accelerating the work at home movement that is changing the way people are employed. DVDs can hold 4.7 to 17 billion bytes of digital data on a 120-mm (4.75 inch) disc. This can mean up to nine hours of studio quality video and multi-channel surround-sound audio, highly interactive multimedia computer programs, 30 hours of CD-quality audio, or anything else that can be represented as digital data. A DVD looks like a CD. It is a silvery platter, 4.75 inches in diameter with a hole in the center. Data is recorded on the disc in a spiral trail of tiny pits, and the discs are read using a laser beam. DVDs hold more information because the pits are smaller and the spiral is tighter and can record data in as many as four layers, two on each side of the disc. Lasers that have a shorter wavelength beam of light are more accurate aiming and focusing mechanisms. These are used to read the DVDs. In fact, the focusing mechanism is the technology that allows data to be recorded in two layers. To read the second layer, the reader focuses the laser deeper into the disc, where the second layer of data is recorded. Not only are two-layer discs possible, but double sided as well. This ability of four layers gives DVD its 17 gigabyte capacity. Since a 135-minute movie fits on a single DVD layer however, single-layer DVDs will be the most common. Philips was founded in 1891 by Gerald Philips in Eindhoven, the Netherlands as a manufacturer of incandescent lamps and other electronics. From its small beginning, Philips has emerged as one of today ¡s global leaders in electronics. As a thirty-nine billion-dollar company, Philips successfully competes in a wide range of markets such as consumer products, lighting, semiconductors, professional products and systems. Philips currently has a workforce of more than 250,000. The company has 243 production facilities scattered throughout twenty-five countries. Philips sells and services its products in 150 countries and their stock is traded in 16 stock exchanges in nine countries. The company presently has seven different product divisions and one hundred businesses in value based competitive analysis. Philips ranked first worldwide in lighting, color picture tubes, shavers, and dictation equipment. They are second in laser optics and monitors. The company is third among consumer electronics and medical imagining equipment. To maintain leadership in global markets through innovation, Philips reinvests 5.3% of its sales into research and development and has research laboratories in six countries. Through its commitment in research, Philips has come up with at least ten thousand inventions in field of optical recording, digital audio coding, digital video coding and mobile telephony. The company is a holder of 60,000 patents and design rights and almost 30,000 trademarks registrations. Philips possesses key patents in optical recording (CD-Audio, CD-ROM, CD-R, CD-RW, DVD-Video, DVD-ROM), digital audio coding (MPEG-2 audio compression) and mobile telephony (GMS and CDMA). Philips Magnavox was formed in 1974 when the two companies decided to join forces. Along with the Philips brand, there are several other name brands including, but not limited to, Marantz and Norelco. Philips Magnavox released the DVD400AT video player on April 30, 1997 at a retail price of $549. The new device allows for richer sound and video quality that was found  ¡V until then  ¡V only in movie theaters. In 1960 Akio Morita began Sony ¡s first major overseas venture in the United States in New York City with a capital investment of $500,000. They employed six people initially but would grow into one of the largest components of Sony ¡s worldwide operations. Currently, Sony Electronics, Inc. in North America has one-third of Sony ¡s corporate assets worldwide. They are the largest geographical operation of the corporation. They rake in some $9.6 billion sales on a given year and roughly $1.3 billion in exports. The North American plants employ a total of 24,000 people whose job range from manufacturing to customer service to research and development and marketing and sales. During the 1995 Consumer Electronics show, Sony debuted the first prototype DVD player in the United States. On January 8, 1997, Sony Electronics released their first DVD player at a retail price of about $1,000  ¡V a big difference from today ¡s $400 price tag. John Briesch, President of Sony Electronics A/V Group said,  ¡Ã‚ §We have designed our first DVD player, model DVP-S7000, as a high-end product to deliver not only reference-standard DVD video quality, but state-of-the-art CD sound as well. ¡ Panasonic introduced its first products into the U.S. market in 1961. The founder of its parent company  ¡V Matsushita Electric Industrial Company Co.  ¡V Konosuke Matsushita believed that  ¡Ã‚ §Matsushita makes people before it makes products. ¡ He basically believed that valuing employees first would lead to better quality products. It seems that his successors have carried out his vision because Panasonic continues to sell high quality products in the U.S. and abroad. The company currently employs 19,500 people in factories, sales companies, service centers and research facilities in the U.S., Puerto Rico, Mexico and Canada. Divx is the latest technology to revolutionize DVD players. Divx movies are synonymous with movie rentals in the sense they can be viewed for a set period of time (48 hours from the time of the initial playing). Unlike traditional movie rentals, Divx doesn ¡t have any late fees tacked on to the price. In addition, there are no late night trips to the video store to return movies. A Divx movie costs an average of $4.50, which includes an initial viewing time of forty-eight hours from the time of pressing the play button. After that time is up, an additional forty-eight hours can be purchased for $3.25. It is done through the internal modem to an 800 number and information is uploaded back to the CD on a very small chip. This can be repeated as often as the user likes. Also, a person may decide a movie on Divx is worth watching over and over. During this case, a Dixv can be converted into a movie that has unlimited playing time and is like a regular DVD movie. Technological and social/cultural shifts: With the advent of the DVD, more and more data can be stored on a single disc. In addition, the DVD is far more interactive than the traditional VHS tape. For example, on a DVD two or more languages can be stored. That couldn ¡t happen on a VHS tape because of limiting recording time. Furthermore, people don ¡t have to leave their house to watch a DVD. With the emergency of e-commerce on the Internet an individual can order a movie off of the web and have it delivered to the front door within days. This takes away from the social interaction with people that occurs in a store setting. People are able to use the DVD to learn another language. Take for instance a DVD that has superstar French-Canadian Celine Dion singing her various songs. One option in the program is to change the lyrics that are displayed on the screen to French. As Celine Dion sings in English, the words matching up to what she is singing are displayed on the bottom of the screen. This is an excellent way to learn another language. There are many different ways that are now being developed to copyright protect the movies, programs and videos etc. that are on the new DVDs. The three most common ways that were found to be used already to protect DVDs are: Regional coding, Content scrambling system and the Copy generation management system (CGMS). When you buy your first DVD drive and install it, you now have to enter the zone in which you live. The world is divided into six sections, with Canada and the United States as zone 1. The DVD disc also has its own codes that allow it to be played in certain parts of the world and not in others. This forces people that buy DVD discs in Zone 1 to also have to utilize discs that are coded for Zone 1. This prohibits movies that are produced in other Zones from being used where they should not be. The code can however be changed on your DVD drive. The code can only be changed a couple of times, thus prohibiting people from changing the code constantly and abusing the protection. It allows the user to change the code a couple of times so that if they move to a different zone they will not be penalized. The second type of encryption is called the Content Scrambling System. (CSS) This is a key-based data encryption that  ¡Ã‚ §sets up a protocol whereby your drive and the disc exchange keys. ¡ The keys are legal, registered mechanism of the Content Scrambling System. Any hardware that is sold or brought into different zones must be registered. When the keys are found to be authentic, then the DVDs can be decrypted. The third type of protection comes from the VCR technology that we are all very familiar with. The Copy Generation Management System is the technology that makes it impossible to copy two videos between two VCRs with a good resolution and brightness. This system works by embedding a signal in a part of the video that is not usually seen by the user. This signal causes the brightness of the video to vary and for the picture to be unreliable. This same technology has been implemented for use with DVDs. Although it seems possible that some people may be able to overcome these copyright traps, the user has to have at least an 8, 10 or 17 GB hard drive.

The Criminology of Terrorism Essay Example | Topics and Well Written Essays - 250 words

The Criminology of Terrorism - Essay Example A soft target, according to terrorist conscious thinking, is an unarmed person or places, whose activities are predictable and thus easy to control and influence (Edwards, 2015). On the contrary, a hard target is a fully armed person or a heavily guarded place, and thus unpredictable because it is prepared to face any challenge brought along by intruders. Terrorist seems to have abandoned such hard targets, which include military bases, and governmental premises because they seem not to convey their intentions and makes it easy for their enemies to study and master their weapon technology and predict their moves. With soft targets, anyone and everyone is a victim. After a series of bombings and killings in megastructures, military bases, governmental buildings, and other highly rated places, people took refuge in hotels, shopping malls, and other social events. Little did they know that it could soon be an easy target? A good example is the Al-Shaabab, which attacked the Westgate Shopping Mall in Kenya last year and a local University this year, killing more than 200 people (Cruickshank, 2013). The latest issue of an Al Qaeda magazine in the Arabian Peninsula advocates the use of soft targets, because they are easy to attack, cause lot damage, and leave without being noticed (Goldstein, 2007). In their suggestion, they urged Jihadists to randomly shoot people in restaurants in Washington DC. Intensity o security by most governments on terrorist hard targets has forced them to change their strategies so that they can accomplish their mission amidst such difficulties. This has seen hotels, restaurants, shopping malls, social events; churches and mosques become easy targets because their acts happen swiftly. In return, they get the attention, while at the same time causing massive havoc in society.

Executive Summary Essay Example | Topics and Well Written Essays - 500 words - 8

Executive Summary - Essay Example Annual reports are the basis on how stockholders and others view the performance of an organization, influencing their decision to retain the stocks or not. The annual report consists of a financial section and a possible narrative section. The financial section remains accurate, because of the attention paid to it by the auditors. The decision to have a narrative section and what it contains is decided by the organization, which is influenced by their financial position. Graphs in the narrative section play an important part in the comprehension of the narrative section. Yet, the graphic designer through selection of graph type, color, scale, and emphasis, and the like, can manipulate the perception of the reader of the narrative section. The distortion of graphs in narrative section is clearly established through several studies. For example, the Canadian Institute of Chartered Accountants in 1993 reports fifteen different ways in which distortion in graphs can occur. Evaluation of financial graphics and the actual financial data in annual reports confirm the use of such graphic distortion. Results of the literature review demonstrate that there is manipulation in selection and preparation of graphic representation that have implications for accountancy-related issues, international opinions, and the communications intended through the annual reports. However, a key question that remains unanswered is whether company size has any role to play in the manipulation of graphical representation in annual reports (Penrose, 2008). This article presents the problem of the requirement for writing skills in accounting firms. Many of the bright university students choose to work in accounting firms. In this era of globalization, writing skills in accounting firms have gained in importance, raising the questions as to the specific requirements of writing skills in accounting firms, whether these needs

Article analysis Example | Topics and Well Written Essays - 750 words

Analysis - Article Example While Coca Cola is the main product of the company, it produces a range of products that include but are not limited to Appletiser, Beat Soda, Cherry Vanilla, Coca Cola with Lemon, Diet Coke, Raspberry Coke, New Coke, Sprite, and Sarsi. The second of the 4 P’s i.e. the price of Coca Cola is only $2 per bottle that contains 2 liters of the drink that essentially means a dollar a liter. However, the 2-liter bottle is available on sale in certain places for only $.99. Coca Cola can be purchased from a variety of places ranging from petty tuck shops to large utility stores and gas stations, place being the third P of marketing. The fourth P i.e. promotion is the most important factor which Coca Cola uses to gain competitive advantage in the market. Coca Cola is promoted in exciting ways. For instance, if a consumer manages to show a winning cap to a shopkeeper from one of the bottles the consumer has drunk before, he/she is entitled to a new free bottle. Coca Cola also promotes it s product by getting the consumers free in the theme parks during the super bowl. The main product of Coca Cola is the soft-drink that is available in almost all countries around the globe at a very reasonable and affordable price. Coca Cola adopts creative and innovative strategies to promote its products as will be discussed shortly. The product is equally popular among people of all ages except for infants. The competitive advantage of Coca Cola is its innovation and corporate social responsibility. Coca Cola is undeniably the most popular and respectable brand that has gained global recognition since its inception in 1866. The unique marketing strategies of Coca Cola since the time of establishment of this company has left its competitors surprised. There has been a continuous modification in the brand positioning of Coca Cola and its packaging over the decades. Coca Cola has always aligned itself closely with innovation and consumer sophistication. Coca Cola always associates i tself with events of global significance specially sports that are watched all over the world in such creative ways as making songs. Factors commonly used in Coke branding include the feeling of happiness and unity that reflect in the songs and advertisements the company makes. The main themes of events that Coca Cola focuses on and associates with include but are not limited to the connection of people by family, sports, and culture etc. Coca Cola has its huge fan-following on social media websites like Facebook and Twitter where they watch Coke videos and comment. The senior vice president of Coke, Wendy Clark said, â€Å"having all those fans respond to Coke is meaningful because fans are twice as likely to consume and 10 times more likely to purchase than non-fans† (Siddiqui). Coca Cola also takes care of environment which is yet another way to brighten its image in the public eye. In fact, corporate social responsibility is what provides Coca Cola with competitive advant age. This can be assessed from the recent pledge made by Coca Cola to recycle the plastic bottles taken from the Olympics 2012 in London to produce 80 million new bottles of Coke within only a month and a half of the ceremony’s end. This plan is hoped to accommodate about one-fifth of the total waste generated during the Olympics games. In addition to this, Coca Cola has introduced a Coke can that is white in

Governmental Reinvention and Privatization Essay

Governmental Reinvention and Privatization - Essay Example It begins with a description of the publications that most often have been associated with the reinvention movement. The primary purpose of the paper, however, is to review reinvention's assumptions, themes, and purposes. It concludes by presenting critical views of REGO's approach and some assumptions toward human resource reforming. For decades the civil service, also known as the merit system, has been accused of being too narrowly focused on protecting government employees from political or personal favoritism. It also has been criticized for not adequately supporting managerial objectives and organizational missions. These kinds of complaints constitute the motivating force behind reinventing government (REGO), which one notable scholar called the most energetic and robust reform movement in the past half-century (Light, 1994, 63). Human resources constitute the most influential of all factors that bear on the quality of an organization's products and services. If employees are not well trained, focused, and committed, then high quality organizational performance is not likely to materialize. This is the basic reasoning that underpins organizational concern for how human resources are managed. It is a logic that applies to both the private and public sectors. REGO claims that the traditional public sector em ployment principles of fitness and merit can coexist with increased managerial discretion and greater employee independence. It also contends that flexibility and innovation can be combined with a system that demands high levels of accountability and equity. (Thompson and Riccucci, 1998) The reinvention critique extends to most areas of government, in addition to targeting many of its recommendations at the civil service. Reinventing Government Reports Management reform is not new to the federal government. At least one major reform initiative has been undertaken every decade of the twentieth century. As Shafritz et al. (2001) report, they "all began with an assumption that government . . . was broken, fragmented, badly organized, and incapable of performing at a level acceptable to the public" (p. 61). The 1980s and 1990s were times during which an extraordinary amount of government reform activity took place (Peters, 1996, p. vii). One scholar of public sector change says the period reflected the greatest pressure ever placed on the U.S. government to innovate (Light 1994, p. 63). The reform movement is not just a United States phenomenon. The National Academy of Public Administration claims that "government performance and accountability is an issue throughout the world" (1995, p. 61). In announcing the creation of the National Performance Review, President Clinton stated that one of its principal goals was "to change the culture of our national bureaucracy away from complacency and entitlement toward initiative and empowerment" (National Performance Review, 1993, p. 1). This may be as succinct a summary of reinvention as

Book Review of American Grace Essay Example | Topics and Well Written Essays - 750 words

Book Review of American Grace - Essay Example American grace is an optimistic book that explains how Americans manage their religious diversity. This is the main cause of inequality and social conflicts experienced within America. The authors say that American religion has adopted most of the social justice-oriented change rather than promoting the positive expected changes. Therefore, the book affirms that social contacts and familiarity in America increases religious tolerance instead of theological doctrine. The authors emphasize religious history of Americans even though they draw attention on the last half of the century throughout the entire book (Putnam & Campbell 3) Who are the authors? Robert D. Putnam and David E. Campbell wrote the book American Grace. Putnam is a political scientist and professor of public policy at Harvard University, where he lectures both the â€Å"Graduate and Undergraduate Courses†. He is a member of the National Academy of Science, a previous president of Political Science Association and a fellow of British Academy. David Campbell is a political science professor at the university of Notre Dame. He is also the founding director of Rooney Center for the study of American Democracy. What are the author’s findings about American religion? The authors discovered interesting things about the American religion. They discovered that that religious experience and religiosity are alive in the United States. This is regardless of the fact that millennial generation present barriers to the management and the spread of religious aspects in the state. According to empirical studies, American religion is unique compared to other western nations. The authors believe that the American’s rates of religious belonging, behaving and believing are high (Putnam & Campbell 36). In addition, the authors assert that Americans have a very complicated religious experience, which is seen in their historical tradition, races, gender, personal relations, and generational. Therefore, the authors conclude that the high level of pluralism that exists in America pervades them. The authors also insist that the potential of American pluralism developing into strife is unlikely to happen because of friendship among the believers where the impor tance of religious diversity is seen. After their research, the authors determined that most of the Americans are intimately acquainted with people from other faith. This is true because their research indicated that every American has an average of at least two friends from a differing faith. Putnam and Campbell also discovered that most American Protestants highly value the Buddhists compared to the Muslims. However, the black Protestants value Muslims compared to the Buddhists. This is because most of the black Protestants are acquainted with black Muslims (Putnam & Campbell 76) The authors discovered that the American religious diversity is not as tolerant e as many people tend to think. This is because; most of the American believers are willing to bend their basic doctrines in the name of interfaith amity. For example, most Christians and evangelical Christians believe that it is possible for the non-Christians to go to heaven. This means that they do not believe in the New Te stament chapters, which insists that without Christ, no one will see the kingdom of God. In the book, the authors also discovered that almost half of the white American population diverted from their parent’s religion by turning to other religious tradition or lapsing into religious indifference (Putnam & Campbell 176). A significant proportion of the married people in America married a person who came from different religious tradition. The authors realized the American’s perception of heaven depends on personal experience with their friends or families who come from differing religious background. The authors real

Civil Disobedience - Gandhi Essay Example | Topics and Well Written Essays - 750 words

Civil Disobedience - Gandhi - Essay Example e to easily suppress the incidences of violent uprising, but the civil disobedience movement was launched on a widespread scale and proved to be a tactic that the British were simply unable to defeat through military means. Gandhi has played an unforgettable role in the history of India and is referred to as Bapu, or the Father of the nation, due to his valuable contribution in bringing about a retreat of British forces from India. Gandhi first commenced the civil disobedience in South Africa, when he was practicing as a lawyer. Angered by the discrimination that was heaped upon black South African majority and his Indian brothers by the white minority, Gandhi encouraged these people to refuse to cooperate with practices they were expected to follow that only denigrated them more. He gave up his lucrative legal practice in order to become the leader of the Indian community that was comprised of despised traders and laborers. (www.india-today.com) and devised his policy of civil disobedience or a quiet non violent refusal to comply with unjust practices that were an attack on human dignity. Gandhi later utilized the civil disobedience movement very successfully in his home country of India, in resisting British rule and demanding that they leave India. He initiated the Non cooperation movement in 1921-22. Indians boycotted British goods and chose to use only Indian products. The crowd and masses quite simply refused to obey orders and the British found themselves helpless in dealing with people who openly disobeyed rules but did not resist arrest and did not retort with violence to any draconian British measures to maintain law and order. There was however, a constant demand from the asses for the British to quit India. Two decades after the movement was first commenced, Gandhi was successful in achieving the goal of Swaraj, or complete independence.(www.india-today.com). Falk (2003) has argued that the potential of the civil disobedience movement in bringing

Measuring the success and the implementation of money laundering Dissertation

Measuring the success and the implementation of money laundering counter-measures - Dissertation Example In the early twentieth century, money laundering known as â€Å"dirty money† was seen primarily as a part of drug trafficking (or other criminal acts) where cash was deposited into banks with the express aim of transforming the proceeds from illegal acts into â€Å"clean† cash. In the last few decades, organised crime, which has come into being, is more sophisticated and global in nature, with even greater proceeds gained from the illegal activities. The term money laundering in the modern context, encompasses not only the aspect of ‘dirty money’ but also the act of ‘cleaning,’ or ‘masking,’ the proceeds from various criminal activities to make them seem legal; while at the same time new aspects on money laundering show clear links with global terrorism. Many of the new counter measure initiatives have a greater focus on the financial perspective of crimes and on determining criminal assets, to allow confiscation. There is also an increasing focus on the financial trails, which tend to link the main criminals with particular acts of crime. Such stringent measures have turned many of the countries as unsafe locations for the criminals, to ‘clean’ their money or lead a luxurious life with no apparent source of income. This paper will briefly explore the various aspects of money laundering, while examining in detail of some of the measures currently in use to counter money laundering, globally and locally, and analysing the extent of success in implementing these anti-money laundering measures. 1 Introduction â€Å"There are few other examples in history of mankind that so dramatically illustrate such concerted effort to denounce and discourage a practice which even a few years ago was neither understood not for that matter necessarily considered improper†(B. Rider, 1997, â€Å"Editorial†). 1.1 Background history Money laundering even a few decades back was not clearly understood, far less being considered as an act of criminality. It gained notoriety only during the last two-three decades when we find that the international community brought in various laws and policies as measures to counter the money laundering (van Duyne, 1998). It was during this time that many scholars turned their attention to this issue, leading to a large number of studies on the topic. While there have been many researches on the subject of criminal money laundering, a majority of the studies mainly deal with evaluating the extent of the money that is involved in the entire process, globally, that is, the nature of researches being primarily quantitative in nature. These studies with their quantitative analyses tend to provide an abstract perspective of the issue of money laundering, with no detailed information on the impact that such criminal activities have on the socio-economic and legal aspects of a country, at the national and global levels. These studies, which view only the figu rative extent of money laundering, deliberate primarily on the various processes adopted by the criminal organisations to escape surveillance, thus removing focus from other

Family Guy Connections between Family and Work Movie Review

Family Guy Connections between Family and Work - Movie Review Example The family does not have sufficient economic resources since Peter Griffin is a blue collar worker who survives as a manual laborer while his wife stays at home tutoring piano lessons. The nature of their work shows that they rely or skilled and unskilled jobs for survival and are grouped among the middle class family of the Rhode Island. According to Family Guys show, there is a gendered division of labor since Peter works on the manual works while his wife, Lois works from home as a piano teacher. The animated series shows the adventures of the family as they pursue different job obligation depending on their gender (Family Guy).The house is not clean since the family has odd kids that play different roles to maintain the humor. For instance the youngest kid, Stewie is a sadist that works upon destroying the world while the talking dog spends its whole time sipping Martin. The nature of the daily per takings automatically shows that the house is not in order.The show outlines infan cy, adolescence and mature adulthood life stages of the characters. In this case, Peter Griffin and his wife Lois are outlined as mature adulthood people sice they are raising a family and have established themselves in their different work roles in Rhode Island. Additionally, Stewie is outlined as an infant son who has adopted adult mannerisms and uses stereotypes in his speeches.Also, Meg and Chris are outlined as teenage kids who do not love schooling and are not intelligent respectively.

SWOT Analysis for CH2M Hill Strengths Essay Example for Free

SWOT Analysis for CH2M Hill Strengths Essay CH2M Hill has many strengths within the company; some of which will be identified in this section. CH2M Hill is a well established brand name with lots of successful Government projects and private projects including the Program Management of the Olympic venues for the 2012 London Olympics. The company has a well defined code of ethics, outlined in â€Å"Jim’s Little Yellow Book†, that each employee should follow and an anonymous hotline, The Guideline, to notify the company of observed ethics violations. CH2M Hill is employee owned through an internal common stock market, giving the employees buy-in into policies and procedures (BUS100mottariano, n.d.). The company has a diversified revenue stream utilizing various areas of expertise in several engineering aspects. CH2M Hill offers full-service capabilities in various business components, among three key operating divisions, Water, Energy Facilities; Government, Environment Infrastructure; and International. Business groups served include: Water; Transportation; Operations and Maintenance; Government Facilities and Infrastructure; Nuclear; Environmental; Energy and Chemicals; Power; and Industrial and Advanced Technology. CH2M Hill developed, upholds and brings out its own process for organization projects for clients, called the CH2M HILL Project Delivery System. This system is such a comprehensive proven system that other firms have engaged CH2M Hill for training and a book has been publish by the firm on the process (Free SWOT Analysis, 2013). Weaknesses Along with its strengths, CH2M Hill also has weaknesses that it needs to overcome to maintain its level of success. The company is rather large and occupies many offices around the world making it difficult to enforce the code of ethics it is so known for in the industries it serves. CH2M Hill has difficulty ensuring compliance to regulations while performing work in so many different states and countries, opening it up to fines and lawsuits. The firm has acquired and merged with other companies to increase its diversity and market position but in turn has had troubles ensuring that these new acquisitions conform to regular practices (BUS100mottariano, n.d.). With the joint ventures CH2M Hill has entered into has come the inability to determine the exact effectiveness of that division where  failure will lead to recognized losses. The firm’s high tech nature and complete reliance on computers and systems makes it vulnerable to financial losses and reputation loss if any of their networks or systems were to fail. CH2M Hill has an employment disadvantage as its existing work force continues to get older every year due to a declining incoming work force and its inability to attract or hire younger professional personnel (Wikidot, n.d.). Opportunities The external market and business factors have created opportunities for CH2M Hill. As other countries develop their sustainable energy futures, there is great opportunity to work in these countries in energy development, one of the main business groups of CH2M Hill. During the course of projects CH2M Hill employees work alongside many subcontractors who could be acquired in the future so that the firm could offer whole project delivery. CH2M Hill‘s management is heavily involved in corporate responsibility activities that can increase the public view of the company (BUS100mottariano, n.d.). The cost leadership that CH2M Hill enjoys as its market strategy has positioned it in the market, enabling it to become the most documented name in the business. This provides an opening for attracting new clients to its web of customers (Free SWOT Analysis, 2013). As developing countries or developed countries look to upgrade their deteriorating infrastructures, CH2M Hill who is known for resource and infrastructure management will have a greater potential client pool. CH2M Hill who has succeeded in form their own 100% secured cloud could offer rentable cloud computing networks for small companies. C2HM Hill has vast experience in the asset management business and could offer this skill to others in North America. Although CH2M Hill has much experience in water management, they tend to work in smaller markets with the global water shortage the larger markets, such as China, are becoming more attractive. CH2M Hill could utilize its vast experience and expertise in renewable energy to gain new projects as the global market demand for cleaner energy resources increases. In addition to operational and maintenance aid in this increasing energy segment CH2M Hill could offer facilities management consultation to these plants (Wikidot, n.d.). Threats Threats to CH2M Hill will come from many different sources; we will discuss some of them below. A declining global economy with less money to invest in infrastructure and private projects will affect the amount of jobs to bid on. Even when there are jobs to bid competitors responding to requests for quotes and proposals can under bid and win projects over CH2M Hill (BUS100mottariano, n.d.). When jobs are won the unpredictable economic cycles could result in the failure of clients to pay their fees to CH2M Hill. To win certain jobs CH2M Hill must rely on subcontractors and suppliers opening them up to any issues that company may have. Unstable economic and industry pricing could lead to losses especially in fixed price contracts. Tightening of and ever changing environmental regulations can make it hard for CH2M Hill to keep up with the changes (BUS100mottariano, n.d.). With CH2M Hills many government projects changes in and functions of government spending priorities can affecting future revenues and even contract risk of termination. Being a part of the consumer industry and dealing with the consumption of fast moving consumer goods, CH2M Hill is highly affected by market trends worldwide. CH2M Hill suffers from the same employment that all North American companies face with the shrinking of the qualified labor force. International business and market risks relating to security corruption, weather and governmental policies threaten projects that CH2M Hill tries to win (Wikidot, n.d.). References BUS100mottariano. (n.d.). SWOT analysis. Retrieved from https://sites.google.com/a/email.vccs.edu/bus100mottariano/home/swot-analysis Free SWOT Analysis. (2013). SWOT Analysis on CH2M Hill. Retrieved from http://www.freeswotanalysis.com/construction/596-swot-analysis-on-ch2m-hill.html Wikidot. (n.d.). CH2MHill Business Model. Retrieved from http://civ1299bmreview.wikidot.com/ Wikidot. (n.d.). CIV1299 intermin report. Retrieved from http://interimreport.wikidot.com/#toc4

Small and medium enterprises

Small and medium enterprises Abstract: Chapter 1: Introduction: Small and medium enterprises have different definitions in different countries. In India, it is known as the Micro, Small and Medium Enterprises (MSMEs) which is defined in terms of investment required. The MSMEs include all the enterprises in which the total investment does not exceed more than Rs. 50 million. The European Commission defines SMEs on the basis of the work force employed, total turnover of the business and the balance sheet total. In the US, the criteria for recognition is based on the work force employed. Small and medium sized enterprises (SMEs) are one of the principal driving forces in economic development. This sector has been recognised as growth engine around the globe. A healthy and vibrant SME sector contributes in a high and sustainable economic growth. They encourage private ownership and entrepreneurial skills, they are flexible and can adapt quickly to changing market demand and supply situations. They provide employment opportunities to the masses, help diversify economic activity and make a significant contribution to exports thereby increasing foreign trade. Many economies have acknowledged the need for growth and development of SMEs for industrial restructuring and have formulated national SME policies, programmes and enterprise development policies. Enterprise helps boost productivity, increased competition and innovation, thereby creating employment and prosperity, and revitalizing the communities. SMEs contribution to the foreign trade has been ever increasing. During the last decade, there has been a considerable increase in the foreign trade arising from the products of these SMEs. The open trade policy has been a great success. The policy makers in developing countries like India, Sri Lanka, Pakistan, and many other South Asian countries have been continuously reviewing their policies to help the functioning of these SME units. Finance is a subject of major concern to the SMEs. The financial institutions like banks and other money lending firms have come forward with plans of funding these units at very competitive rates. Subsequently, there has been an increase in the lending by such financial institutions to the SMEs. This has increased the efficiency of the SMEs to a great extent. Chapter 2: SMEs: An Overview Contribution of SMEs: SMEs are the backbone or the key drivers of the industrial economy. They can also be described as the engines of growth of the industrial sector. Although they are individually small, collectively they play a multiplayer role in the development of an economy. They have a multiplayer impact in developed as well as developing economies. The main USP of SMEs is low cost production i.e. the ability to manufacture low volumes profitably, meet niche requirements, capitalize on local skills and resources, provide outsourcing opportunities and most importantly create jobs. The below mentioned table indicates the contribution of SMEs across diverse economies. (Table-1) Table 1: Contribution of SMEs across diverse economies The sector has been consolidating over the years. What is new is the articulation and recognition of this process and its pump priming role. Therefore national SME policies, programmes and enterprise development policies have been formulated to support smooth working of SMEs and to overcome major obstacles such as lack of legislation, promotion and infrastructure. This can be done in the form of promotion programmes, positive discrimination hand holding and advocacy. Policy initiatives seek to highlight basic SME skills in low cost production. SMEs have an impressive presence in service industry ranging from the simple and traditional organisations to the most modern and hi-tech ones. SMEs contribute not only in terms of quantitative factors such as output, employment, income, investment or exports but also in terms of qualitative factors viz the synergies they promote with large industry, their contribution towards balanced regional growth, their contribution in nurturing entrepreneurial spirit, innovation and in providing a nationwide pool of skilled and trained manpower. While the comparative advantage of SMEs are well acknowledged, SMEs also have their share of pros and cons which prevent them from realising their full potential. They have to face some problems such as lack of proper guidance in the initial stages, lack of funds in the times of crisis, lack of proper marketing strategies, stiff competition from big players, lack of access to latest technology, no proper infrastructure etc. Therefore, although new SMEs are emerging very rapidly worldwide, the number of SMEs closing down every year is also very high. Also because of the twin forces of globalization and free trade policy of WTO, there is a serious threat to the SMEs sector. It will have to reorient and reinvent itself to overcome these challenges. This can be done by restructuring the small scale organisations, and if nothing works, they have to be closed down. Closures are undesirable but sometimes they are advisable from the resource allocation point of view. Thus the high rate of entries and exits reflect the dynamic nature of this sector and also explains why it is seen as an industrial incubator. As mentioned earlier, SMEs play a very important role in the development of an economy, especially from the employment point of view. They are very effective for the generation of employment for both skilled as well as unskilled workers. Therefore labour extensive countries should opt for SMEs. Even the underdeveloped or developing countries which are capital intensive and labour extensive, SMEs can be a great help. There has been increasing growth of SMEs worldwide in the recent past. The government of the developed and developing economies have been formulating policies which promote smooth working of the SMEs. SMEs have contributed significantly in the developed as well as developing countries. In the European Economic Area (EEA) and Switzerland there are more than 16 million enterprises; of which less than 1% comprise large companies while the rest are SMEs. Two thirds of the job opportunities are provided by SMEs in this region and the remaining one third of the job opportunities are by large companies. SMEs are considered the backbone of Asia Pacific region as they account for 90% of enterprises. They provide around 32% 48% of employment and their contribution to Gross Domestic Product is around 60% 80% in individual Asia Pacific economies. Even in the United States, SMEs contribute greatly. It contributed at around 43% of the net employment opportunities from 1990 1994.SMEs are considered the engine of economic growth in both developed and developing countries not only because of low cost production but also because of low unit cost of persons employed as compared to large scale enterprises. Thus they provide a significant share of overall employment. Also SMEs assist in local and regional development by regional dispersion of economic activities, thus helps achieving fair and equitable distribution of wealth. SMEs not only contribute towards the GDP but also towards the export revenues. Although SMEs are at a disadvantage in terms of finance, technology, human resource development and networking; SMEs involved in foreign trade are very dynamic. This may be due to its low-cost labour intensive nature of its products; and since these units generally use indigenous raw-materials; they have a positive effect on the trade balance. For example, SMEs in OECD member states produce about 26% of OECD countries exports, and about 35% of Asian exports. Also SMEs increase flexibility in the provision of services and the manufacture of a variety of consumer goods and competitiveness of the market place and thereby curb monopoly of large enterprises. All this leads to fostering of self-help and entrepreneurial culture by bringing together skills and capital through various lending and skill enhancement schemes. Thus SMEs not only enables an economy to maintain a reasonable growth rate but also imparts resilience to withstand economic upheavals. Chapter 3: Indias SME scenario: The Indian Small and Medium enterprises sector formally known as the Small Scale Industries (SSI) has had a notable importance since the period of Mahatma Gandhi. SSIs were set up in the rural parts of India with a view to inculcate the habit of self reliance amongst the people. Later on, after independence, the SSI units were an important source of income to the people of India. Indian policy makers had noticed the importance of this self reliant industry and had always been striving hard for their progress. After achieving independence in 1947, India drafted and adopted the Industrial Policy of 1948 which meant that the government would act as both an entrepreneur and also as a governing body. With the beginning of the planning of a free India in 1951, the role of SMEs has been earmarked specially. In its industrial policy, the government started announcing special schemes for the growth of the SMEs in India. It was in 1956, during the Second Five Year Plan that the government announced the Second Industrial Policy, clearly stating the importance of the SME sector. This gave an impetus to the development of SMEs in a manner that made it possible for them to achieve the objectives of: Ø High contribution to domestic production. Ø Significant export earnings. Ø Low investment requirements. Ø Operational flexibility. Ø Low intensive imports. Ø Capacity to develop appropriate indigenous technology. Ø Import substitution. Ø Technology-oriented industries. Ø Competitiveness in domestic and export markets Today, small and medium enterprises (SMEs) are the ladder of progress for a nations economy, especially in case of developing countries. They contribute handsomely to the exports, the industrial base, the Gross Domestic Product (GDP) and the Gross National Product (GNP) of the nation. Small and medium enterprises help provide employment and various facilities to the society. In 2006, the Government of India passed an Act known as the Micro, Small and Medium Enterprises Act (MSMEDA), 2006 to define SME sector of India. This Act defines micro, small and medium enterprises in India on the basis type of sector namely manufacturing and the service sector. In case of manufacturing sector, the size of the enterprise is decided on the basis of investment in plant and machinery. In case of service sector enterprise, the size is decided on the basis of investment in equipment required to set up the industry. Table 2: Definition of SME in India. Strategic Importance of Indian SMEs: In Indian economy, the SMEs occupy a place of strategic importance due to its contribution to the overall output, exports and employment. The total number of SMEs has been increasing rapidly. The total number of registered enterprises has been around 3million and has been increasing at an even faster speed. They contribute about 50% of the total industrial output and constitute 42% of total exports. These units produce approximately 8000 units which range from very basic to highly sophisticated products. By providing employment opportunities to nearly 29.4 million people, this sector takes the credit for employment to the largest number of workforce. Chart 1: Growth rate of SSI sector vis-à  -vis Total Industrial Sector. Chart 2: Growth Rate of Employment in the SSI sector. Link: http://www.smebank.org/SME%20Sector.htm#2 Role of Indian SMEs: The role of SMEs in the overall economic growth of the country has been fundamental and has been achieving steady progress over the last couple of years. With a view from the industrial development of India and the overall economic growth, SMEs have to play a vital role since their labour intensiveness helps to generate employment opportunities. In a developing country like India, the SME sector is of utmost importance in order to eradicate poverty and hence to drive sustainable growth. In case of countries where the capital resources are scarce, and an abundant supply of labour, SMEs help in the efficient allocation of resources by implantation of labour intensive production process. Performance of Indian SMEs: In the late 1940s, there were around 80,000 units. Today, the total number of units has increased tremendously and the total number of units is approximately 13 million units in 2006-07. Of the total 13million units, around 55% are in the rural India and the rest in cities and urban regions. Table 3: Number of Small and Medium Enterprises. The contribution of the SSI sector to the GDP was approximately 13% in 2000-01; this has grown to a 15.5% in 2007-08. The performance of the SSI sector in terms of economic parameters such as number of units, production, employment and export during the last decade is indicated in the table below: Table 4: Performance of Small Sector in India The SME has not only been successful in increasing its contribution to the GDP, but it has also outperformed the organized sector to a great extent in terms of production and also in employment creation. Table 5: Share of SME output to Indias GDP Employment: The employment opportunities created by the SMEs is considerable. It is evident from the table below that for every 10 million rupees invested by the SMEs, more than 4 times of employment opportunities are created; more than any other sector in India. It is clearly seen that in the year 2006, for every 10 million rupees invested in SMEs, generated employment opportunities for around 151.4 persons, whereas, the same amount invested in the other sectors would create employment opportunities for around 37.4 persons only. Table 6: Investment to employment ratio Exports: The SME sector is a major contributor to the total exports of India. Of the total exports by India, approximately 50% exports are contributed by this sector. SMEs are responsible for 35% of the total direct exports and 15% are contributed by its allied activities. The indirect exports may be in the form of export orders of other large units or in the form of production of various parts and components for the making of the finished product. The major trading houses, merchant exporters and the export houses play a vital role in the export development. The non traditional products account for more than 95% of the exports. The exports from the SME sector have increased tremendously during the last decade. The growth of the garments, leather, gems and jewellery units in the recent past is the reason for the increase in the exports by the SME sector. The SME sector dominates the sports goods, readymade garments, woollen garments and knitwear, plastic products, processed food and leather products industry. The table below indicates these segments and the corresponding SME contribution. (Table 7) Table 7: % of SSI in total Export SME exports growing in tandem with total exports: SMEs constitute an important segment of Indias industrial production with a contribution to 33% of its exports. During FY03-06, Indias total merchandise exports in US dollar terms witnessed a CAGR growth of 25%, while in the same period SME exports grew at a CAGR of 24%. The remarkable contribution of SMEs in generating employment in the country has been instrumental in addressing issues pertaining to poverty and inequality of income. As per the Third All India Census on Small Scale Industries-2001-02, highly populated states such as Madhya Pradesh, Uttar Pradesh, West Bengal, Maharashtra, Karnataka and Jharkhand together contributed to around 55.4% of the total exporting units in India. In terms of distribution of value of exports from the SME sector, states like Punjab, Haryana, Uttar Pradesh, Tamil Nadu and Maharashtra together contributed 64.75% of total exports. Chart 3: Share of SME export to total exports The composition of export basket of SMEs in India, it has both traditional and non-tradition commodities in nature. There are few commodity groups which are exclusively exported by SMEs such as sports goods, cashew, Lac etc. In the commodity group of engineering goods, SMEs constitute around 40% of the total exports of this commodity group. Similarly, SMEs in basic chemicals pharmaceuticals finished leather and leather products and marine products account for around 44%, 69% and 50% of the export share in their respective commodity groups. In view of the Government of Indias ambitious target of average GDP growth rate of 9% during the 11th Five Year Plan, SMEs have to play a vital role in achieving this target. It is imperative for the government to address the major issues plaguing the sector and take further inclusive growth oriented policy initiatives to boost the sector. This includes measures addressing concerns of credit, fiscal support, cluster-based development, infrastructu re, technology, and marketing among others. As mentioned earlier, SMEs constitute 34% of Indias merchandise exports and in order to increase Indias export share to the global trade, SMEs are expected to enlarge their scope manifold. Problems Faced by Indian SMEs: The SMEs in India have been facing lot of issues that hinder the performance and the survival of this sector. The government has been striving hard to provide with policies that would help the smooth functioning of the SMEs. The main problems that have been faced by the SMEs are: Finance: Micro, Small and Medium Enterprises, especially the micro enterprises have been facing the problem of inadequate access to finance. This is mainly due to the lack of information on financing activities and also due to the traditional business style. In India, there is also a lack of private equity, venture capitalists and business angels entering the MSME sector which would provide easy financing options to businesses which have unique ideas. The availability of finance has been a major problem for the SME sector. The SMEs have not been able to have easy access to the loan offered by the various commercial banks and other financial institutions. This is despite the Reserve Bank of India (RBI) and the Ministry of Finance having laid down instructions to the banks and financial institutions to encourage easy financing options to the SMEs. According to Morris et al., 2001:11; â€Å"there are strong structural underpinnings to the inadequate flow: the organisational structures of banks, and processes within them, have taken them far from task orientation and have created a specific bias against small loan portfolios.† The government has been constantly seeking new ways to make access to loan funds an easy process for the SMEs. The small industries sector has been worst hit by the problem of financing. These units have not been able to understand their financial situation and also they havent been able to maintain transparency in their financials. The banks and financial institutions have been hesitant with regards to providing financing solutions by means of loans to these small units. This is because in the recent past, the loans that have been offered to some of these units have been transformed in to non-performing assets and hence, the banks have been trying to avoid this high level of risk. The banks and other financial institutions have been in fact extending more of their loans to the medium industries sectors in order to comply with the RBI regulation of financing for the ‘priority sector. Infrastructure: After finance, availing good infrastructural facilities has been a topic of concern for the MSME sector. The infrastructural facilities that are available in the rural parts of India differ substantially with those available in the cities and the urban parts of India. There has been growing concern towards the supply of power at affordable rates to these units. In the rural parts where the rates are comparatively lower than the urban parts, the adequate supply of electricity has been an issue. The lack of newer technological knowhow has been growing. There has been a huge difference in the technique used in the towns to those used in the villages. Those in the urban areas have now been able to make use of computers and other computer operated machines whereas in the villages, the traditional methods of production are still being used. The transport facilities have not been developed very well. In spite of so many highways being constructed, there has not been ease of transporting facilities for the SMEs at affordable rates. This hinders the rural and semi-urban markets to access new and larger markets in the other parts of India. Lack of skilled labourer: Lack of skilled labour hampers the productivity of the SME unit. The skilled labour can make better use of resourced and could also be able to handle computers. Skilled labourers can be of great help with means of management and marketing. Product Reservation: For the purpose of good productivity, there has been product reservation which means around 800 products are being reserved to be produced only by the SMEs. The list is being revised on a regular basis but under political influence. The main purpose of product reservation was to create local employment by means of using locally available resources. But due to increased political influence, the main purpose of the reservation has been lost. The SMEs are at times not informed that they produce the reserved product. Role of Government for SME development in India: The Government of India has recognised the role of MSMEs in the overall development of the countrys economic situation. The MSMEs are of utmost importance in terms of employment generation, share to the GDP, share to the industrial output, foreign exchange generation, etc. The Government of India has implemented various policies in conjunction with the state government, the RBI and various NGOs for the betterment of the MSMEs in India. As a stepping stone towards MSME development, the Ministry of Small Scale Industries (SSIs) was combined with the Ministry of Agro and Rural Industries to form the Ministry of Micro, Small and Medium Enterprises (MSMEs). This helped to formulate policies on a national basis bringing all the enterprises whether rural or urban under one cabinet. The main purpose of the Ministry of MSMEs was of drafting policies, programmes, development projects and schemes and also to keep a check on the implementation of these policies. The Government of Indias has launched a landmark initiative by the introduction of the MSEMD Act, on 2nd October, 2006. It is due to the enactment of this Act that there has been an increase in the SME competitive strength. The issues related to the growth of SMEs had been surfaced and thus, the SME had been able to accept challenges and reap the benefits of large scale economies. The co-ordination of policies at both the state and the national level has helped strengthen the role of SMEs not only at the lower but also at the higher level. A recent policy introduction by the Tamil Nadu government to encourage the agro-based industries by means of providing a wide range of incentives, support for infrastructure development, subsidies for investing in industrially backward areas, capital investment and technology development with an aim to sustain a growth rate of over 10% in the food and agro based sector. The Government of India has set up various institutions at both national and state level which are both a governing as well as a support body for the SMEs in India. The Ministry of Micro, Small and Medium Enterprises, Small Scale Industries Board, Small Industries Development Organisation (SIDO), National Small Industries Corporation (NSIC) Limited, The Khadi and Village Industries Commission (KVIC) and Coir Board work in co-ordination with the various institutes and assist the SMEs at both national and state level. Today, the working of the Ministry has lead to the existence of various SME governing bodies which help the smooth functioning of the SMEs. The Industrial Development Bank of India (IDBI), the Small Industries Development Bank of India (SIDBI), National Small Industries Corporation (NSIC), the SME Rating Agency of India (SMERA), etc. all play a convincing part in the development and smooth functioning of the SMEs in India. Policies implemented by the Government: The Government of India has been reviewing its policies for the SMEs. The various organisations set up in coordination with the Ministry of Micro, Small and Medium Enterprises look after the formulation and implementation of the various policies for the SMEs. Finance: The Government of India in co-ordination with the Reserve Bank of India (RBI), the countries apex bank has been striving hard in order to create policies for making available easy financing options to the SMEs. The RBI has been issuing directives for every bank and financial institution to maintain a quota of funds to be made available to the Micro, Small and Medium enterprises. The Government of India has set up special financing institutions that provide easy finance options to the SMEs at very nominal interest rates. The Government has taken many initiatives to make finance readily available to the SMEs: Industrial Development Bank of India: Industrial Development Bank of India (IDBI) was instituted in 1964 as a wholly owned subsidiary of the RBI as the top institution for providing finance to the SME sector. The Government of India in 1975 passed a law for de-linking IDBI from RBI and making it the principal financial institution for (i) co-ordination of the working of institutions engaged in financing, promoting or developing industry; (ii) assisting the development of such institutions; and (iii) Providing credit and other facilities for development of industry and for matters connected therewith. IDBI has brought about a revolution in industrial growth by means of providing finance for medium and long term projects in co-ordination with the national policies. The range of products offered by IDBI has been increasing in every field of industrial need be it manufacturing or services sector. IDBI has been empowered to provide financial assistance to all types of small enterprises. Small Industries Development Bank of India: The Government, in April 1990, established the Small Industries Development Bank of India (SIDBI) as a fully owned subsidiary of the Industrial Development Bank of India in order to promote financing activities for the Small and Medium Enterprises on a nationwide basis. In March 2000, the government amended the SIDBI Act and de-merged it from IDBI. The amendment led to the change in the capital structure, shareholding pattern, business and borrowing provisions. The SIBDI has two subsidiaries namely SIDBI Venture Capital Fund and SIDBI Trustee Company Limited. The Credit Guarantee Fund for the Small Industries and Technology Bureau for Small Enterprises are the two associate organizations that work in co-ordination with SIDBI. Since the foundation of SIDBI, it has been assisting the micro, small and medium sector (MSMEs) providing those with suitable schemes which are tailor made to suit the need of individual organizations. It assists in the setting up of new projects, expansion, diversification, modernization and rehabilitation of existing units. After the de-merger of SIDBI from IDBI, it has introduced several new schemes and products in order to meet the need of both new and existing SME units. It has been maintaining its policies and revising them from time to time keeping them in line with the policy plans of the Government and RBI. Competitiveness: The Government has been striving hard in order to provide a competitive edge to the units in the global environment. In order to increase the productivity of the MSME sector so as to overcome the competition that these units can face in the global markets and also to face the competition from the multi-national companies in the local Indian markets, the Government of India has introduced the National Manufacturing Competitiveness Programme (NMCP) in the year 2005-06. The NMCP programme was implemented to shift the focus of the SMEs from the production to the competitive side of business. There was a need for the SMEs to introduce some structural changes and therefore this programme was introduced. The programme was initiated to increase the competitiveness at the individual firm level and not at industry or sector level. The need of the hour was to address issues such as technology up gradation, cost reduction, in time delivery, total quality management (TQM) and to enhance the customer service. The NMCP worked in co-ordination with the SMEs and helped attain an environment for the accomplishment of these issues. National Commission for Enterprises in the Unorganised Sector: The National Commission for the Enterprise in the Unorganised Sector has been set up to improve the productivity of the unorganised sector. It acts as an advisory board and a supervisory body for the informal sector for generation of large scale employment opportunities on a sustainable basis, particularly in rural areas. Reservation: The policy of product reservation had been started in the year 1967 with the governments objective of attaining socio-economic development by reserving the manufacturing of products solely by the SME sector. The Government introduce this policy with a view to improve the productivity of the SMEs especially in the rural areas which would in turn help to increase employment opportunities and also initiate the people to take up self employing business opportunities. The Government of India had reserved some products to be manufactured only by the SSI sector. In 1984, the list contained as many as 843 products to be manufactured only by the SME sector. But in the recent years, due to the lack of technological up gradation and competitiveness on the part of SMEs, the has been reduced to as low as 21 products. The de- reserving of the products has been progressive for the re introduction of the SMEs in the main stream. Simple Process: The registration of the SMEs was earlier a very painful and lengthy process. This system has now been replaced with the much simpler Entrepreneurs Memorandum (EM). The introduction of the EM has been the most valuable achievements of the MSMED Act, 2006. The Need of Credit as a Lifeline of Business: Finance or credit is of crucial importance for any business to grow and survive. If adequate finance is not available, even the best plans need to be put to halt. In case of MSMEs, credit is needed at every stage be it start up, diversification, technological up gradation, survival and expansion. If finance is not readily available, there is every possibility that the best performing unit can fall sick thus leading to the closing down of the unit. Thus, the need for a focused credit policy for the MSMEs was recognised by the Government of India. Hence, a credit policy with the following terms was laid down: Priority Sector Lending: Providing of credit to the MSME sector has been made compulsory by the government under the Priority Sector Lending Scheme. The priority sector includes agriculture, small enterprises and businesses, retail trade, etc. Under this scheme,

Law Of Diminishing Marginal Utility Economics Essay

Law Of Diminishing Marginal Utility Economics Essay Managerial Economics is the intergration of bridges the gap between economic theory with business practice so as to facilitate decision making Comment outline the nature and scope of Managerial Economics in light of this statement. Spencer and Siegelman have defined Managerial Economics as the integration of economic theory with business practice for the purpose of facilitating decision-making and forward planning by management. The above definitions suggest that Managerial economics is the discipline, which deals with the application of economic theory to business management. Managerial Economics thus lies on the margin between economics and business management and serves as the bridge between the two disciplines. The following Figure 1.1 shows the relationship between economics, business management and managerial economics. pg-2 NATURE OF MANAGERIAL ECONOMICS There are certain chief characteristics of managerial economics, which can help to understand the nature of the subject matter and help in a clear understanding of the following terms: Managerial economics is micro-economic in character. This is because the unit of study is a firm and its problems. Managerial economics does not deal with the entire economy as a unit of study. Managerial economics largely uses that body of economic concepts and principles, which is known as Theory of the Firm or Economics of the Firm. Managerial economics is concrete and realistic. It avoids difficult abstract issues of economic theory. But it also involves complications ignored in economic theory in order to face the overall situation in which decisions are made. Economic theory ignores the variety of backgrounds and training found in individual firms. Managerial economics belongs to normative economics rather than positive economics. Normative economy is the branch of economics in which judgments about the desirability of various policies are made. Positive economics describes how the economy behaves and predicts how it might change. In other words, managerial economics is prescriptive rather than descriptive. It remains confined to descriptive hypothesis. Managerial economics also simplifies the relations among different variables without judging what is desirable or undesirable. For instance, the law of demand states that as price increases, demand goes down or vice-versa but this statement does not imply if the result is desirable or not. Managerial economics, however, is concerned with what decisions ought to be made and hence involves value judgments. This further has two aspects: first, it tells what aims and objectives a firm should pursue; and secondly, how best to achieve these aims in particular situations. Macroeconomics is also useful to managerial economics since it provides an intelligent understanding of the business environment. This understanding enables a business executive to adjust with the external forces that are beyond the managements control but which play a crucial role in the well being of the firm. SCOPE OF MANAGERIAL ECONOMICS As regards the scope of managerial economics, there is no general uniform pattern. However, the following aspects may be said to be inclusive under managerial economics: Demand analysis and forecasting. Cost and production analysis. Pricing decisions, policies and practices. Profit management. Capital management. Demand Analysis and Forecasting A business firm is an economic Organisation, which transforms productive resources into goods that are to be sold in a market. A major part of managerial decision-making depends on accurate estimates of demand. This is because before production schedules can be prepared and resources are employed, a forecast of future sales is essential. This forecast can also guide the management in maintaining or strengthening the market position and enlarging profits. The demand analysis helps to identify the various factors influencing demand for a firms product and thus provides guidelines to manipulate demand. Demand analysis and forecasting, thus, is essential for business planning and occupies a strategic place in managerial economics. It comprises of discovering the forces determining sales and their measurementDemand determinants Demand distinctions Demand forecasting. Cost and Production Analysis A study of economic costs, combined with the data drawn from the firms accounting records, can yield significant cost estimates. These estimates are useful for management decisions. The factors causing variations in costs must be recognised and thereby should be used for taking management decisions. This facilitates the management to arrive at cost estimates, which are significant for planning purposes. An element of cost uncertainty exists in this because all the factors determining costs are not always known or controllable. Therefore, it is essential to discover economic costs and measure them for effective profit planning, cost control and sound pricing practices. Production analysis is narrower in scope than cost analysis. The chief topics covered under cost and production analysis are: Cost concepts and classifications Cost-output relationships Economics of scale Production functions Cost control. Pricing Decisions, Policies and Practices Pricing is a very important area of managerial economics. In fact price is the origin of the revenue of a firm. As such the success of a usiness firm largely depends on the accuracy of price decisions of that firm. The important aspects dealt under area, are as follows: Price determination in various market forms Pricing methods Differential pricing product-line pricing and price forecasting. Profit Management Business firms are generally organised with the purpose of making profits. In the long run, profits provide the chief measure of success. In this connection, an important point worth considering is the element of uncertainty existing about profits. This uncertainty occurs because of variations in costs and revenues. These are caused by factors such as internal and external. If knowledge about the future were perfect, profit analysis would have been a very easy task. However, in a world of uncertainty, expectations are not always realised. Thus profit planning and measurement make up the difficult area of managerial economics. The important aspects covered under this area are: Nature and measurement of profit. Profit policies and techniques of profit planning. Capital Management Among the various types and classes of business problems, the most complex and troublesome for the business manager are those relating to the firms capital investments. Capital management implies planning and control and capital expenditure. In this procedure, relatively large sums are involved and the problems are so complex that their disposal not only requires considerable time and labour but also top-level decisions. The main elements dealt with cost management are: Cost of capital Rate of return and selection of projects. The various aspects outlined above represent the major uncertainties, which a business firm has to consider viz., demand uncertainty, cost uncertainty, price uncertainty, profit uncertainty and capital uncertainty. We can, therefore, conclude that managerial economics is mainly concerned with applying economic principles and concepts to adjust with the various uncertainties faced by a business firm. Managerial Economics serves as a link between traditional economics and the decision making sciences for business decision making. The best way to get acquainted with managerial economics and decision making is to come face to face with real world decision problems. Managerial economics is used by firms to improve their profitability. It is the economics applied to problems of choices and allocation of scarce resources by the firms. It refers to the application of economic theory and the tools of analysis of decision science to examine how an organisation can achieve its objective most efficiently. Ques No 2. Discuss the role of Managerial Economist in a Business Organization. A managerial economist helps the management by using his analytical skills and highly developed techniques in solving complex issues of successful decision-making and future advanced planning. The  role of managerial economist  can be summarized as follows: He studies the economic patterns at macro-level and analysis its significance to the specific firm he is working in. He has to consistently examine the probabilities of transforming an ever-changing economic environment into profitable business avenues. He assists the business planning process of a firm. He also carries cost-benefit analysis. He assists the management in the decisions pertaining to internal functioning of a firm such as changes in price, investment plans, type of goods /services to be produced, inputs to be used, techniques of production to be employed, expansion/ contraction of firm, allocation of capital, location of new plants, quantity of output to be produced, replacement of plant equipment, sales forecasting, inventory forecasting, etc. In addition, a managerial economist has to analyze changes in macro- economic indicators such as national income, population, business cycles, and their possible effect on the firms functioning. He is also involved in advising the management on public relations, foreign exchange, and trade. He guides the firm on the likely impact of changes in monetary and fiscal policy on the firms functioning. He also makes an economic analysis of the firms in competition. He has to collect economic data and examine all crucial information about the environment in which the firm operates. The most significant function of a managerial economist is to conduct a detailed research on industrial market. In order to perform all these roles, a managerial economist has to conduct an elaborate statistical analysis. He must be vigilant and must have ability to cope up with the pressures. He also provides management with economic information such as tax rates, competitors price and product, etc. They give their valuable advice to government authorities as well. At times, a managerial economist has to prepare speeches for top management. Ques No 3. Critically explain the role of the concept of Time value of Money in Mangerial decisions? The time value concept of money assumes importance because of the fact that future is always associated with uncertainty. A rupee in hand today is valued higher than the one rupee that is expecting to be recovered tomorrow. The following are points that come in support of the fact that the concept of time value of money is quite relevant in any area of decision making : (a) The purchasing power of money over period of tinw goes down in real times. That means, though numerically the same, the purchasing power of one rupee today is considered to be high economically than its value as on a future date. (b) Individuals prefer present consumption to future consuiilption. This is because of the risk a n d uncertainty associated with future. (c) There is always related costs in any investinent. These costs tend to bring down future value of money. The concept of time value of money figures in rnany day-to-day decisions. For example. in the vital decision making areas in the management like the effective rate of interest on a business loan. The mortgage payment in real estate transaction and evaluation of true Return on investment etc. the time value of money plays an important role. Wherever use Of money is involved and its inflow and outflow patterns are spread over a time horizon, this concept very useful. For example consider the following: * A banker must establish the term of loan * A finance manager is who considers various alternatives sources of funds in terms of cost. * A portfolio manager is one who evaluates various securities Ques No 4 Compare the Cardinal Ordinal Approaches to Consumer Behaviour. Which of these enables us to bifurcate the price effect and how? Cardinal Approach refers that you can calculate or Measure the utility (degree of satisfaction) Numerically, while According to ordinal approach you can not measure the utility numerically.   Cardinal Approach follow the Law of Diminishing Marginal Utility while Ordinal Approach follow the Indifference Curve. Cardinal Approach Emphasis on units while ordinal approach is based on rank. When discussing cardinal vs. ordinal, it is helpful to look at what the words mean. The distinguishing factor here is between cardinal and ordinal numbers. Cardinal numbers are 1, 2, 3; ordinal numbers, 1st, 2nd, 3rd. Some crucial differences follow from that. Whereas mathematical operations can be performed on cardinal numbers, they cannot be performed on ordinal numbers. Now, when talking about cardinal utility, it is an attempt to measure the utility of various alternatives. When talking about ordinal utility, it is the ranking of alternatives. Cardinal utility is, however, an erroneous concept. It is impossible to measure utility. People can only say I prefer A to B, but cannot meaningfully say I prefer A 2.5 times more than B or something to that effect. Furthermore, comparisons of utility between different individuals are impossible and meaningless, as well as between the same individual at different points in time (as individuals can and do change their preferences that is, ordinal value-scale rankings). Because value is subjective, we cannot measure it and cannot compare between two different people, or even between the same person at different times. To clarify, ordinal utility culminates in value-scales: 1st: A   2nd: B   3rd: C whereas cardinal utility is the erroneous attempt at measurement: 10utils A   7utils B   3utils C Ques No 5. Managerial Economics is inter- disciplinary in natureComment/ Explain the relationship of ME with other disciplines. Managerial economics is essentially applied economics in the field of  business management. à ¢Ã¢â€š ¬Ã‚ ¢It is the economics of business. à ¢Ã¢â€š ¬Ã‚ ¢It pertains to all economics aspects of  managerial decisions making. à ¢Ã¢â€š ¬Ã‚ ¢It is the integration of economic principles with business management practices. à ¢Ã¢â€š ¬Ã‚ ¢Managerial economics rests on the edifice of  economics. à ¢Ã¢â€š ¬Ã‚ ¢A fundamental knowledge of economics and economic theory is needed for a  meaningful analysis of business situation Managerial economics is linked with various other fields of study like- Microeconomic Theory: As stated in the introduction, the roots of managerial economics spring from micro-economic theory. Price theory, demand concepts and theories of market structure are few elements of micro economics used by managerial economists. It has an applied bias as it applies economic theories in order to solve real world problems of enterprises. Macroeconomic Theory: This field has little relevance for managerial economics but at least one part of it is incorporated in managerial economics i.e. national income forecasting. The latter could be an important aid to business condition analysis, which in turn could be a valuable input for forecasting the demand for specific product groups. Operations Research: This field is used in managerial economics to find out the best of all possibilities. Linear programming is a great aid in decision making in business and industry as it can help in solving problems like determination of facilities on machine scheduling, distribution of commodities and optimum product mix etc. Theory of Decision Making: Decision theory has been developed to deal with problems of choice or decision making under uncertainty, where the applicability of figures required for the utility calculus are not available. Economic theory is based on assumptions of a single goal whereas decision theory breaks new grounds by recognizing multiplicity of goals and persuasiveness of uncertainty in the real world of management. Statistics: Statistics helps in empirical testing of theory. With its help, better decisions relating to demand and cost functions, production, sales or distribution are taken. Managerial economics is heavily dependent on statistical methods. Management Theory and Accounting: Maximisation of profit has been regarded as a central concept in the theory of the firm in microeconomics. Ques No 6. Discuss the properties of Indifference Curves. Discuss their role in consumers decision making process? Indifference Curves Each point in the  diagram  stands for a basket of meat and ghee (cooking oil) A, B, C, D are all baskets among which a certain consumer is indifferent. All give equal utility. These points and all others on a smooth curve connecting them constitute an indifference set. An indifference curve is a graphical representation of an indifferent set. Indifference Curve Properties Following are the indifference curve properties: 1. If two commodities are perfect substitute the indifference curve is a straight line. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%201.jpg When two commodities are not substitutable then the shape is represented by two vertical and horizontal lines. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%202.jpg In more typical cases, in which the two commodities can be substituted for each other but are not perfect substitutes, the indifference curve will be curved as http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%203.jpg 4. The more easily the two commodities can be substituted for each other the nearer will the curve approach straight line. 5. Indifference curves normally slope downward, the upward sloping portion of curve shown here s impossible. Basket A has more goods than basket B and therefore it could not be on the same indifference curve.   The indifference curves have normally negative slops sloping downward. http://www.studylecturenotes.com/images/stories/Indifference%20Curve%20Properties%20Fig%204.jpg 6. The absolute value of the slope of an indifference curve at any point represents the ratio of the marginal utility of the good and on the horizontal axis to the marginal utility of the good on the vertical axis. The rate at which one good can be substituted for the other without gain or loss in satisfaction is called marginal rate of substitution. 7. Indifference curves are convex, that is, their slope decrease as one moves down and to the right along them. The implies that the ratio of the marginal utility of meat to the marginal utility of the ghee (cooking oil) also known as marginal ratio of substitution of meat for ghee (cooking oil) diminishes as one moves down and to the right along the curve. 8. Indifference curves can be drawn through the point that represents the basket of goods whatsoever. Ques No 7. Discuss the concept of Production Possibility Curve? What is the reason behind its shape? Do you think there are exceptions to it? Production Possibility curves The production possibility curves is a hypothetical representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other. The curve is used to describe a societys choice between two different goods.  Figure 1, shows the two goods as consumption and investment.  Investment goods are goods that are involved in the production of further consumption goods.  They include physical capital such as machines, buildings, roads etc. and human investments such as education and training. The sums of all investments make up the capital stock of a society. To show the point where all resources were used to produce consumption goods, one should move straight up the vertical axes to the curve.  To show the point were all resources were used to produce investment goods, one should move straight on the horizontal axes to the curve.  Both points are extreme and unrealistic.  Both points A and B represented m ore realistic combinations, with point A showing more consumption and less investment, while point B shows more investment and less consumption. http://krypton.mnsu.edu/~renner/image001.JPG The production possibility curve of figure 1., shows the trade off in production between investments and consumption goods. Any two categories of different goods could be chosen. What they are is arbitrary. The curve is used to show during a specific  period, what could be produced of the combination of the two goods, if all resources are fully employed, while technology and institutions do not change.  Given those conditions, societies output potential is realized anywhere on the curve (which is called the production possibility curves frontier). Unemployed resources (labor, capital, physical resources) of any kind would result in an inefficient production level,  and would be shown as a point to the left, or inside the curve. By definition all point to the right or outside of the production possibility curve (frontier) are impossible, given the limits of resources and technology. Opportunity Cost This hypothetical curve shows how much of consumption must be given up to increase investments (the movement from A to B).  This demonstrates the important economic concept of  Opportunity Cost, which is the cost of anything (such as an investment in a new road), in terms of what has to be given up.  This is the general concept of cost in economics. For the individual, these costs could be financial, but they could include a individuals time and other intangibles. For society the production possibility curve shows opportunity cost only on the curve itself.  If society found itself inside the curve, for instance, during a recession (where all resources are not being utilized), then a movement out to the production possibility curve has no real opportunity cost. The unemployed resources are just being utilized (unemployed labor going back to work). Opportunity cost is different than accounting cost, and unfortunately is not so easily calculated. Opportunity cost has a subjective element.  For instance, to determine the opportunity cost of a new highway, includes the obvious cost of materials, of labor, of land, (these are the easily determined accounting cost), but there are also intangible cost, such as the cost to the community of the disruption involved with new construction, and the change in the communities effected by the highway. Also there may be costs connected to increase pollution (with health effects), increased noise, and an increase in general unattractiveness.  These cost are real, but are difficult to both measure and evaluate. Putting a dollar value on these cost adds a subjective element to the evaluation. As a result sometimes they are ignored.   Ques No 8. Graphically explain the Law of Diminishing Marginal utility. Discuss its applicability in the intergrated Global Economy Law of Diminishing Marginal Utility The Law of Diminishing Marginal Utility states that as the consumer consume more and more units of a commodity the marginal utility of the commodity falls. The law of diminishing marginal utility is a psychological law arrived at by introspection and by empirical evidence. The example of this law is when a consumer drinks water on a hot afternoon; the first glass of water gives him more satisfaction as compared to the second (as the thirst has decreased after consuming one glass of water). The second glass of water gives more satisfaction as compared to the third and so on. The Law of Diminishing Marginal Utility, which states that as the consumer consume more and more units of a commodity the marginal utility of the commodity falls. If MUx â‚ ¬Ã‚ ¾ MUy Px Py it means that good x is giving more satisfaction to the consumer as compared to good y. Therefore the consumer would gain satisfaction by consuming more of good x and less of good y. As he consumes more of good x, MUx will fall which would lead to fall in MUx/ Px. Similarly MUy will rise as he consumes less of good y. This would increase MUy/ Py. This process will continue till we reach the equilibrium point where MUx = MUy = MU of the last rupee spent on each good Px Py Similarly if MUx Px Py The consumer would increase the consumption of good y and reduce the consumption of good x till he reaches the equilibrium point where MUx = MUy = MU of the last rupee spent on each good Px Py EXAMPLE OF DIMINISHING MARGINAL UTILITY :-   This law can be explained by the following example. Suppose in the month of June a person start drinking water. First glass of water has a great utility for him. If he takes the second glass of water, the utility will be less than the first. If he drinks the third glass , the utility of third will be less than the second, and so on. The utility goes on diminishing with the consumption of every next unit and it drops down to zero. If the consumer is forced further, the utility will become negative. This law can also be explained by the following table : https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEioOWPSmPrmOiJ1JqzkeNzotXGFwx1vOGutvqUng52IbEz_kIrGDPAeOLKlQ_Y56U-SQAPBfud9ZvXz7QoVKyZdHQxeYMoc1YyDYfJ2C1N8zl434nnZU-yOj14NP01GpQQDy1ZrCoGK2sI/s320/schedule+of+diminshing+marginal+utility.JPG EXPLANATION :-  The above table show that first glass of water gives units of utility to the thirsty man. When he takes second the marginal utility drops down to 8. When he consumes the 6th glass the marginal utility drops down to zero and by the use of 7th it becomes negative. https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjR7U9M7cGARgcNqfg8FZqkvPoXSdiFNplwJjADwFiK-UZtwGtU9AHH9sDe30_tthUd5vI1q6jgSf8Cf4Di_2FohQq_KpRZF6D3AtqHh9Y6zebBOtJiCUMl4tORMjQIEgHm-KzAJXG86GY/s320/diagram+of+diminishing+marginal+utility.JPG EXPLANATION :-  Along OX we measure the units of commodity consumed along OY utility derived from them. The utility of the first glass of water is represented by the first rectangle and second glass by the second rectangle and so on. FF curve is the diminishing utility curve. ASSUMPTIONS OF DIMINISHING MARGINAL UTILITY 1. NATURE OF THE COMMODITY :-  There should be no change in the nature of the commodity. For example, If first mango taken is not better, while the second is better, then the utility will not decrease and the utility of second will be greater than first. 2. REASONABLE UNITS :-  It is assumed that the units of a commodity which are used should be suitable and reasonable if the units are too small then this law will not operate. 3. CONTINUOUS USE :-  It is also assumed that the units of the commodity should be used continuously. If there is interval between the consumption the same two units then the law will not be applicable. 4. NO CHANGE IN INCOME :-  It is also assumed that the income of the consumer should not change, otherwise the law may not operate. 5. NO CHANGE IN FASHION AND CUSTOMS :-  If there is a sudden change in fashion or customs of a consumer, the law may not operate. 6. RARE COLLECTIONS :-  If there are two diamonds in the world the possession of the second diamond will push up the marginal utility. 7. NO CHANGE IN THE STOCK OF OTHER PEOPLE :-  Sometimes an increase in the stock of a commodity increases the marginal utility. For example the number of telephone increase in the city, but the utility of our telephone increases. 8. STATE OF MIND SHOULD NOT CHANGE :-  If a consumer has been told that  mango  is a tonic for his health, then marginal utility will increase instead of falling. EXCEPTIONS OR LIMITATIONS 1. DESIRE OF MONEY :-  This law is not applicable in case of money with an increase in wealth man wants to get more and more. 2. DESIRE OF KNOWLEDGE :-  Some experts say that man wants to get more and more knowledge so the law can not be applied in this case. 3. USE OF LIQUOR :-  With the additional use of liquor like wine marginal utility also goes on increasing. 4. PERSONAL HOBBY :-  In case of hobby also this law can not operate. For example , as the collection of tickets increases, its utility also increases. 5. FASHION :-  Utility also depends upon fashion. If the fashion of any commodity changes, its utility drops down to zero. On the other hand if fashion exists then utility increases. Ques No 9. Describe how Marginalism, Opportunity cost Incremental concept aid Decision Making. The marginalist explanation is as follows: The total utility or satisfaction of water exceeds that of diamonds. We would all rather do without diamonds than without water. But almost all of us would prefer to win a prize of a diamond rather than an additional bucket of water. To make this last choice, we ask ourselves not whether diamonds or water give more satisfaction in total, but whether one more diamond gives greater additional satisfaction than one more bucket of water. For this marginal utility question, our answer will depend on how much of each we already have. Though the first units of water we consume every month are of enormous value to us, the last units are not. The utility of additional (or marginal) units continues to decrease as we consume more and more. Economists believe that sensible choice requires comparing marginal utilities and marginal costs. They also think that people apply the marginalism concept regularly, even if subconsciously, in their private decisions. In southern states, for example, a much lower fraction of people buy snow shovels than in northern states. The reason is that although snow shovels cost about the same from state to state, the marginal benefit of a snow shovel is much higher in northern states. But in discussions of public-policy issues, where most of the benefits and costs do not accrue to the individual making the policy decision (e.g., subsidies for  health care), the appeal of total utility and intrinsic worth as the basis for decision can mask the insights of marginalism. Even good answers to certain grand questions give little guidance for rational public policy choices. For example, what is more important, health or recreation? If forced to choose, everyone would find health more important than recreation. But marginalism suggests that our real concern  should be with proportion, not rank. Finding health in total to be more important than recreation in total does not imply that all diving boards should be removed from swimming pools just because a few people die in diving accidents. We need to compare the number of lives saved from fewer diving accidents, that is, the marginal benefit of getting rid of diving boards, with the pleasure given up by getting rid of diving boards, that is, the marginal cost of getting rid of