Difference in Leadership Styles with First Born Children

Difference in Leadership Styles with First Born Children These children would want to achieve a lot. They set high standards and they are perfectionists. It is also stated that they focus on achieving the goals in the educational and occupational settings. The transformational leaders are always driven to achieve the goals set. They are also concerned with helping others solve their problems. They are motivated. They have a vision and they try had to achieve it. They encourage others to achieve and fulfil the goals of the organization. The first born children tend to be hard working. They possess authoritarian characteristics. They want to fulfil the expectations of the family. They are responsible. They are set to achieve their goal. They conform to the rules as they need to fulfil the expectations by the parent. Since they act in the same way their parents they tend to inspire others. They have qualities of others as they have grown up with the parents around and tend to pick those up. Hence, based on the above descriptions it was deduce d that the only children and first born tend to have most often the same characteristics. Many researchers have concluded that only-children and first-borns, regardless of gender, appear to be academic achievers as compared to later born children (Coleston, 2008). Thus, the hypothesis that â€Å"There will be no significant difference between Only children and First born on Transformational Leadership style† was formulated. Transactional Leadership Style Transactional leadership style mainly focuses this attention on the role and task and how this is related to the performance. The transactional leadership theory states emphasize on the relationships that are formed between the leader and follower on account of various exchanges (Burns, 1978 cited in Wheatley, 2010). In 1978, according to Hollander he theorised this leadership as to have various dynamic process. These were mainly in relation with the leader and follower and the interpersonal interactions among the two. These leaders were responsible to give clear instructions. They would reciprocate with the follower and respond to them appropriately. This in turn increased the leader’s influence on them (Hollander, 1978 cited in Wheatley, 2010). These leaders rewarded and gave the followers acknowledgement when the expectations or the goals were met. These leaders mainly negotiate and their roles and responsibilities and there is mutual respect and influence. According to Hei fetz in 1994, these leaders influence their followers and they are also under the followers as it is a reciprocal relationship. According to Burns 2003, leaders who are involved in both the simple and complex situations and they try to achieve the organizational goals (Wheatley, 2010). Only children never lack companionships. From an early age they are used to playing alone with their toys and not forming relationships much. Their job satisfaction most often depends on their urge to attain perfection. An only child will find a setting where they can work alone rather than in a team (Leman, 2009 cited in Murphy, 2012). The first born children are well organized. They feel they must be perfect in everything that they do. They stick to authority and they follow the rules (Kalkan, 2008 cited in Murphy 2012). First borns are seen as highly motivated and most often take charge of the things. First born children generally hold the dominant role over the younger siblings in the family (Tucker and Updegraff, 2010 cited in Murphy, 2012). They often fill high positions of authority in their professions. They set high goals for themselves and they generally would do anything to achieve the goals that they have set (Leman, 2009 cited in Murphy, 2012). According to the above literature review it has been seen that only children prefer working on their own rather in a team and also try to seek perfection. The transactional leaders share a relationship with their followers and clearly explain the roles. The first borns try hard to seek perfection. They are very motivated and do anything to achieve their goals. Hence, the hypothesis stating that â€Å"There will be no significant difference between Only children and First born on Transactional Leadership style† was formulated. Laissez faire leadership style These leaders generally cause confusion as they are in leadership positions but they are not working or associated with any kind of responsibility. They are inactive. (Bass, 1990 cited in Hartog et al 1997) reported negative correlations on laissez-faire leadership and this in turn results in the performance, effort and attitudes. This is the most inappropriate way to lead someone. There is not enough motivation given by them. A leadership theory by Kerr and Jermier proposed that subordinate, task, and, organization are the main characteristics. When there is no leader role the subordinates could be empowered to do work and thus this can result in transformational leadership (Hartog et al 1997). Only children are higher on taking initiative and personal aspiration. They are highly motivated. They focus on educational or occupational achievement more often. These children have stronger individual identities (Mellor, 1989 cited in Collins, 2006).The first born children are often seen as powerful and influential (Murphy, 2012). They operate as being responsible for their family members and in return about the productiveness of them. When they feel that the productivity has not been attained they feel that they were not good enough for the job (Hoopes Harper, 1987 Cited in Klas, 2002). According to the above literature review it can be seen how only children are seen are very motivating and focused. The laissez faire leadership style is one where there is no leadership role taken and they are irresponsible. The first born children are seen as powerful and taking initiative to complete a task. Hence, the hypothesis â€Å"There will be no significant difference between Only children and First born on the Laissez faire leadership style† was formulated. 2.2.1 ii Only children and Last Born Only children according to Adler will occupy a unique position as they don’t have another sibling to compete with. The only child generally becomes the focus of attention to the family (Havighurst, 1960; Leman, 1998 Cited in Klas, 2002).They lead their life with dependence and self-centeredness. They gain their family’s attention throughout their childhood. Later on in life there is this awakening where they are no longer the focus of attention anymore. They never had to compete with others. They usually have difficulty interacting with their peers (Hjelli et al., 1992). Only children do not have the habit of sharing their things with others this by default comes across as being selfish (Leman 1988, cited in Klas, 2002). The Last born children are considered the most outgoing and secure one in the family. They are generally the least academic ones (Herra, 2003 cited in Collins, 2006). They are looked as the least capable one when compared to their siblings. They are also looked as having less experience in comparison to the other siblings in the family. These children may become discouraged as they are not able to fulfil the expectations set by their older siblings and hence they are considered as failures. These children possess strengths such as caring, outgoing, thoughtful and empathizing which are certain personal skills that the other siblings tend not to possess (Snow et al, 1981 cited in Collins, 2006). Transformational Leadership Style In Transformational leadership however, the leader fails to understand followers motives and needs. The focus shifts from the need of the leader to the followers needs. By gaining an understanding of their followers needs, the transformational leader can potentially convert followers into leaders (Chandan et al, 2014). Hence, the hypothesis â€Å" Only children will be higher on Transformational Leadership style as compared to Last Born† was formulated. Transactional Leadership Style According to this theory there is an exchange of rewards between the leaders and the followers. Transactional leaders try to motivate their followers through extrinsic rewards. The roots of Transactional leadership theory is grounded in the social learning and social exchange theories, which recognize the equal nature of leadership. Bass and Avolio described contingent reward as that when the leader will give the subordinate once they have achieved goals that were agreed to. Contingent reward is therefore the exchange of rewards for meeting agreed-on objectives. Transactional leaders can also act by relying on active management by exception which occurs when the leader monitors followers to ensure mistakes are not made. In passive management by exception, the leader interferes only when things go wrong (Chandan et al, 2014). Only children are more autonomous when it comes to personal control. Only children prefer being around things than people. This has been seen from an early age where they play with toys rather than mixing with others. When the other person who the only child interacts with does not understand what he/she is trying to say they often get frustrated (Isaacson, 2004 cited in Murphy 2012). Last born generally have a drive for passion in their live. They strive for different type of success most often to a new innovate way something in which they can excel in and not the same field as their siblings. They are attracted by new ideas and innovations. They haven’t had much of the valuable experiences at home instead they are seen more sociable as they have opportunities outside their homes to develop these social skills (Snow et al, 1981 cited in Collins, 2006). According to the above literature review it can be seen that only children prefer working on their own. They do not like when others do not understand them They prefer things over people. The transactional leadership style is where the leader has a reciprocal relationship with the follower. They motivate their followers by giving rewards. Hence, the hypothesis â€Å" Only children will be significantly lower on Transactional Leadership style as compared to Last borns† was formulated Laissez faire Leadership style These leaders allow the group complete freedom in decision making. They never took part in any discussion of any kind. They dint not participate in working towards a goal as well. There were no appraisals also given to their followers. Hence, as it can be seen by the above literature review that the last born children are more sociable and they have innovate ideas which they excel in and especially good social skills. It can be seen since the last born children would be able to express their needs and give the rewards to their followers as compared to the only children. The hypothesis that â€Å" Last born will be higher on Laissez faire leadership style as compared to only born† was formulated. 2.2.1 iii First Born and Last Born First Born generally behave in a more mature way as they have interacted with adults mostly. They are hence expected to assume responsibilities. They resent having to serve as the models for their younger siblings. They also have to take care and look after their younger siblings. They generally conform to the wishes of the group they belong to. They generally give in to the wishes and are suggestible as they have always conformed to their parent’s wishes most often. They have been overprotected and hence there could be a lack of aggressive behaviour. The generally develop leadership abilities and this happens as since they were small they had to assume responsibilities at the house. They are often seen as bossy to others. They are usually really high achievers and sometimes even overachievers and this is due to the parental expectations that make them perform as they need the parent’s approval for almost everything. They feel replaced by the other sibling and therefore try and achieve a lot of things to gain the approval of their parents. They are unhappy and this stems as they feel really insecure after the other younger sibling has come into their lives (Hurlock, 1981).First born and last born generally occupy different positions in their family. First born constantly keep rankly themselves in relationship to the other people present around them. They generally tend to be more conscientious, intellectual, and socially dominant than later born. On the other hand, later born children are more agreeable, socially gregarious, and non-conforming. First born were always used to the attention given by their parents until the sibling was born, this led to feeling of dethronement and they became more dominant. Later born on the other hand were more agreeable and less conscientious as compared to First born (Sulloway, 2001 cited in Roach, 2006). Last born tend to be wilful. They are spoilt by the family and pampered. There wasn’t much discipline given to them and the parents were not that strict. They had greater feelings of security as there was no displacement for them. They are protected by their parents when the older sibling verbal or physically attack them. This is why they are more dependent and in turn they are irresponsible. They generally underachieve as they do not have much parental demands. They have extremely good social relationships outside the house. They tend to be popular but not good leaders due to their lack of responsibilities. They tend to be happy due to the attention they have received (Hurlock, 1981). Transformational Leadership style They are those people that encourage and motivate the followers to achieve the goals. A transformational leader mostly needs to make decisions quickly. They take each opportunity that is presented to them. These leaders are very persistent. They have a vision and are passionate about it. They possess values such as conviction and a good character. These leaders are caring and they respect other individuals. These leaders are competent as well. These leaders tend to see that their vision is achieved in the organization. They see that there is a change brought about in their subordinates. They are innovative. They tend to integrate the creative insight and intuition within themselves. These leaders focus on the other aspects looking towards the future and not just the current situation they are faced with (Bhargava, 2003). According to the above literature review it can be seen that the first born are more responsible as they have grown up with adults. The last born tend not to take up responsibility and they tend not to be good leaders. This helped in concluded and formulating the hypothesis that â€Å" First born will be higher on Transformational Leadership style as compared to Last born†. Transactional Leadership style Transactional leadership style mainly focuses this attention on the role and task and how this is related to the performance. The transactional leadership theory states emphasize on the relationships that are formed between the leader and follower on account of various exchanges (Burns, 1978 cited in Wheatley, 2010). In 1978, according to Hollander he theorised this leadership as to have various dynamic processes. These were mainly in relation with the leader and follower and the interpersonal interactions among the two. These leaders were responsible to give clear instructions. They would reciprocate with the follower and respond to them appropriately. This in turn increased the leader’s influence on them (Hollander, 1978 cited in Wheatley, 2010). These leaders rewarded and gave the followers acknowledgement when the expectations or the goals were met. These leaders mainly negotiate and their roles and responsibilities and there is mutual respect and influence. According to H eifetz in 1994, these leaders influence their followers and they are also under the followers as it is a reciprocal relationship. According to Burns 2003, leaders who are involved in both the simple and complex situations and they try to achieve the organizational goals (Wheatley, 2010). Last borns are considered as saviours of their family as they give more emphasize to the accomplishments and achievements of their older siblings and this gives them a sense of position of esteem and significance (Stewart et al, 2001). They tend to lack in maturity as they have been pampered by their mothers more often. Since they are given more attention by their mother their extraverted ego is being fed and this is a reason they are considered to be more creative (Nakao et al, 2000 cited in Collins, 2006). According to the transactional approach there exists and active relationship among the leader and follower where they are seen to influence one and another. The leader generally gives rewards to the follower and tries not to use authoritative measures (Wheatley, 2010). Younger siblings are described as being co-operative and outgoing. Investigations have also confirmed that middle born and last born are socially adept as compared to the older siblings (Coleston, 2008). According to the above literature review it was seen that the last born are seen more co-operative as compared to the older sibling who is more authoritative. Hence, the hypothesis that â€Å" Last born will be higher on Transactional Leadership style than First born† was formulated. Laissez Faire Leadership style The laissez faire leadership style is extremely the opposite of the other two leadership styles that are active. This is mostly linked to negative outcomes where there is low motivation seen by the leaders (Wheatley, 2010). There is an absence of any kind of Transaction (Wheatley, 2010).They are very passive leaders (Yammarino Bass, 1990; Yammarino, Spangler Bass, 1993, in Hartog et al 1997). These leaders generally avoid the decision making of the team. They also avoid supervising and taking up this responsibility. First-born when compared to last born children and middle children found that they are more socially adept than the rest. It was seen that the first born and only children had similar traits. They tended to be more self-confident, conscientious, responsible and less empathetic. The younger siblings were seen as rebellious and risk takers (Coleston, 2008). The first born children help to mentor their younger siblings. They tend to be good caretakers. The parents give more attention to the first born as compared to the last born. The last born generally don’t take up responsibilities as the older sibling most often does that for them ( Kluger, 2011 cited in Murphy, 2012) According to the above literature review it can be first born will be more confident and responsible as compared to the last born. The will take up initiative and not rebel as compared to the last born. The laissez faire leadership is one where there is no supervising or responsibility taken. Hence, the hypothesis â€Å" Last born will be higher on Laissez faire leadership style as compared to first born† was formulated. 2.3. Summary The given chapter included a detailed literature on the variables that are studied. The hypotheses that were formulated were based on the reviewed literature and were hence inferred.

Causes of Chronic Migraines

Causes of Chronic Migraines Headache is pain in any part of the head that can occur suddenly or gradually and produce a varying amount of pain; in fact, it is the most common form of pain in the United States (U.S. Department of Health and Human Services, 2014). Headache is often divided into two categories, primary and secondary (U.S. Department of Health and Human Services, 2014). A primary headache is one that is due to the headache itself, it is not caused by another problem (U.S. Department of Health and Human Services, 2014). The three types of primary headache include tension headaches, cluster headaches, and migraine headaches (U.S. Department of Health and Human Services, 2014). Secondary headaches, on the other hand, are headaches that are caused by something else (U.S. Department of Health and Human Services, 2014). Examples of secondary headaches include headaches from an illness, headaches from a medication, sinus headaches, cervicogenic headaches (which are headaches related to an underlying neck condition, like degenerative disc disease), and headache due to a brain tumor or aneurysm (U.S. Department of Health and Human Services, 2014). Migraine headaches are one of the most common forms of headache (Davanzo, Bua, Paloni, Facchina, 2014). Migraines are considered a neurological condition (Schwedt, 2014; Silberstein, 2014). They often manifest as recurrent attacks of throbbing, frequently unilateral headaches with associated features, including: nausea, vomiting, photophobia, and phonophobia (Pietrobon Moskowitz, 2012; Schwedt, 2014). Migraines can be further subdivided into episodic or chronic (Schwedt, 2014). Episodic migraine sufferers have less than 15 headache days a month, whereas chronic sufferers have at least 15 headache days a month for at least three months, and at least eight headaches that have symptoms consistent with a full-blown migraine attack (Ferrari, 2013; Schwedt, 2014). Chronic migraine is a common disorder; it impacts people during their most productive years of life, has tremendous costs to the individual and society, and is associated with a variety of comorbid disorders (Schwedt, 2014). Chronic migraine typically develop through a process called migraine transformation, which is a slow increase in the frequency of headaches, usually over a period of months to years (Schwedt, 2014). Chronic migraine is diagnosed based on the patient’s symptoms by excluding other causes of headache (Schwedt, 2014). A general physical and neurological exam should be performed on each patient and attention should be paid to the patient’s neck, shoulders, temporal artery pulses, and tempromandibular joint; if any abnormalities are found on the neurological exam, a secondary headache should be suspected and the patient should undergo further evaluation (Schwedt, 2014). Many risk factors are associated with a higher likelihood of transformation from episo dic to chronic migraine and include obesity, excessive caffeine intake, low socioeconomic status, and major life changes like marriage or divorce, to name a few (Schwedt, 2014). Common conditions comorbid with chronic migraine include other neurological disorders, gastrointestinal problems, and cerebrovascular disease (Pietrobon Moskowitz, 2012; Schwedt, 2014). Compared to people with episodic migraines, patients with chronic migraine are twice as likely to have certain psychiatric disorders, including anxiety, depression, and bipolar disorder (Schwedt, 2014). The pathophysiology of chronic migraine is complicated and not fully understood (Schwedt, 2014). It was once believed that migraines were simply a swelling of the blood vessels in the brain (Pietrobon Moskowitz, 2012). More recent experiments have shown that swelling of the meninges and/or extracranial arteries is neither necessary nor sufficient to cause migraine pain (Pietrobon Moskowitz, 2012). While such swelling is certainly often found during migraines, migraines are no longer assumed to be exclusively a disorder of blood vessels; rather, there are data to suggest that chronic migraine is associated with progressive brain changes, both in brain structure and brain function (Ferrari, 2013; Pietrobon Moskowitz, 2012). Atypical modulation of pain is suspected to play a role in the transformation from episodic to chronic migraine by reducing the inhibition of pain in the regions of the descending pain modulatory pathway in the brain (Schwedt, 2014). Neuroimaging studies of patie nts with chronic migraine have shown both atypical structures of pain processing and atypical pain processing in the brain (Schwedt, 2014). Regions of the brain that participate in sensory discrimination, affect, and the cognitive appraisal of pain are also atypical in migraine sufferers (Schwedt, 2014; Silberstein, 2014). Many studies have found correlations among the extent of these abnormalities and the frequency and severity of migraine headaches, suggesting that these abnormalities could be precursor to the transformation from episodic to chronic migraine (Schwedt, 2014), but more research is necessary to determine the exact role and mechanism of these abnormalities. The trigemininovasular system is currently considered one of the major players in the role of chornic migraine (Pietrobon Moskowitz, 2012; Schwedt, 2014). The trigeminal nerve is the fifth cranial nerve in the body and is the main sensory nerve in the head (Fix Brueckner, 2009). Some researchers believe that the musculature around the trigeminal nerve branches become irritated, which leads to the swelling and pain caused by migraine headaches (Kurlander, Punjabi, Liu, Sattar, Guyuon, 2013). Presently it is speculated that a sensitization of the trigeminal system that innervates cranial tissues, specifically the meninges (which often swell during migraine attacks) leads to a lower threshold for activation (Pietrobon Moskowitz, 2012; Schwedt, 2014). A lower threshold for activation means the system becomes activated more easily, which leads to more migraine attacks, and more migraine attacks therefore increase the likelihood of a chronic migraine diagnosis (Pietrobon Moskowitz, 20 12; Schwedt, 2014). Another line of research that is currently being investigated is cortical hyperexcitability (Schwedt, 2014). The human nervous system is composed of billions of synapses and neurons functioning as part of a large, highly specializes system (Fix Brueckner, 2009). All aspects of behavior are informed by the nervous system, and it can rudimentarily be broken down into excitatory and inhibitory components that facilitate the communication among different neurotransmitters in the brain to determine the level of inhibition of excitation of each response (Fix Brueckner, 2009). Excitation in the brain is mainly associated with the neurotransmitter glutamate (Fix Brueckner, 2009). Recent transcranial magnetic stimulation studies on patients with chronic migraine have shown cortical hyperexcitability, particularly in the occipital cortex of the brain. The occipital cortex is associated with vision, and this makes sense to researchers as visual auras are often associated with migraine attack s (Fix Brueckner, 2009; Schwedt, 2014). A neurotransmitter of interest, particularly with the beginning phase of a migraine attack, is dopamine (Charles, 2012). Some research has shown that dopamine receptor agonists administered to patients produce some of the same symptoms that are experienced by migraine sufferers at the beginning of an attack (Charles, 2012). Conversely, dopamine receptor antagonists administered to patients can reverse those symptoms and have even been suggested to have the ability to prevent the onset of additional migraine attacks (Charles, 2012). While the exact role of dopamine in chronic migraine is unknown, it is certainly an interesting line of future study. Treatments for chronic migraine range from trigger identification and avoidance to risk-factor modification, and include both pharmacological and nonpharmacological components (Schwedt, 2014). A discussion of each type of treatment and the variety of treatments within is beyond the scope of this review, however, some of the most common pharmacological treatments will be highlighted. Pharmacological treatment for migraines can be divided into two categories: abortive drugs, which stop a headache after onset, and prophylactic drugs, which are taken on a regular basis to prevent the onset of a migraine (Davanzo et al., 2014). Those who suffer from chronic migraine are often on a prophylactic regimen, due to the intensity and severity of the headaches (Davanzo et al., 2014). While many drugs are used for chronic migraine prophylaxis, it is important to note that many are prescribed off label; in fact, the only drug approved by the Food and Drug Administration for the treatment of chronic migraine is onabotulinumtoxinA (Schwedt, 2014). OnabotulinumtoxinA, more commonly known as Botox, has been popularized as a series of small injections in the face that reduce the appearance of crow’s feet and frown lines (Oliver, MacDonald, Rajwani, 2006). However, the injections are also used to treat chronic migraine (Schwedt, 2014). Botox is part of a class of medications called neurotoxins (Fix Brueckner, 2009). It has no direct effect on the central nervous system because it cannot penetrate the blood brain barrier, however, it can have some important indirect effects on the central nervous system (Fix Brueckner, 2009; Oliver, MacDonald, Rajwani, 2006). When used to treat chronic migraine, Botox is injected into different muscles in the face to block the nerve signals to those muscles (Fix Brueckner, 2009; Oliver, MacDonald, Rajwani, 2006). Specifically, Botox has been shown to inhibit sensitizations of central trigeminal nerves, which was previously discussed regarding the pathophysiology of chronic migraine (Ol iver, MacDonald, Rajwani, 2006). Triptans are another common class of drugs used for chronic migraine prophylaxis (Davanzo et al., 2014). Triptans are serotonin receptor agonists, meaning they bind to serotonin and increase the response of serotonin at the site of action (Davanzo et al., 2014; Fix Brueckner, 2009). Triptans have a vasoconstriction action on blood vessels, meaning they shrink the size of blood vessels, which is helpful in reducing the pain of migraines some of which can be attributed to swollen blood vessels in the brain (Davanzo et al., 2014). However, the desired effect of vasoconstriction is not limited to just the brain and also constricts other blood vessels, including those in the heart (Davanzo et al., 2014). As a result, patients with any coronary disease should use care when taking triptans (Davanzo et al., 2014). The most commonly prescribed triptan medication is Sumatriptan and is available in multiple forms including pills, injections, and intranasal spray (Davanzo et al., 2014). The inj ections and intranasal spray reach the brain more quickly and are therefore faster acting than the pill which must first get absorbed into the blood stream to take effect (Davanzo et al., 2014). Beta blockers, originally used for the treatment of hypertension and angina, are also often used for migraine prophylaxis (Davanzo et al., 2014). The beta part of beta blockers refers to receptors on blood vessels that are called beta receptors (Fix Brueckner, 2009). Therefore, beta blockers prevent the interaction of certain chemicals with this receptor (Fix Brueckner, 2009). The most commonly prescribed beta blocker for chronic migraine is Propranolol (Davanzo et al., 2014). Propranolol is likely successful in preventing migraine headaches by blocking beta adrenergic receptors, which inhibits swelling of arteries. Additionally, Propranolol may also exhibit its effect by preventing the platelets (the sticky elements of the blood) from sticking together and releasing substances that caused the blood vessels to constrict and dilate. A concern with pharmacological treatment of chronic migraine is the development of medication overuse headaches. These occur when a migraine sufferer uses migraine drugs too frequently, and develops a secondary headache as a result of the medication use (Schwedt, 2014). The treatment includes a drug withdrawal phase, during which time the patient would have to stop taking medication for his migraine or take a medication with different mechanism of action to allow the overused drug to leave his system (Schwedt, 2014). This response is paradoxical because sufferers of chronic migraine often rely on pharmacological treatments to alleviate their pain, but if they take too much they will actually end up exacerbating their pain. About half of chronic migraine sufferers are treated for medication overuse headaches at some point (Schwedt, 2014). A brief overview of the criteria for diagnosis, hypothesized pathophysiology, and pharmacology for the treatment of chronic migraine has been discussed. While there is still much to learn about the pathophysiology of chronic migraine, recent research has increased the understanding and opened up new areas of research to bring scientists closer to a more comprehensive understanding. While many data indicate that chronic migraine is a debilitating condition with great intensity and duration of headaches, and often lead to lost productivity and high costs on society (Schwedt, 2014), there are prophylactic and abortive drugs that can greatly ameliorate the problems caused by migraines. With attention to and modification of risk factors, often in addition to appropriate adherence to these medications, migraine sufferers can live normal, productive lives.

Reasons Behind Lehman Brothers Bankruptcy

Reasons Behind Lehman Brothers Bankruptcy Undoubtedly, the complexity and unpredictability of the external environment-market forces/stakeholders influenced the way and manner Lehmans CEO, Mr Richard Fuld behaved. He involved himself and his organization into unethical practices due to so many expectations on them. The market competition was getting very fierce, so he had to bend the rules in order to keep his organization profitable. Market complacency, weak financial regulations, lack of transparency and poor internal financial control policy led to the demise of Lehman Brothers. Mr Fuld adopted the omnipotent view of management but told the U.S House of Representatives Committee on Oversight and Government Reform that the collapse of his firm was totally out of his control-i.e. symbolic approach. This indicated a weak moral culture/development at the preconditional level. His ethical inclination indicated a utilitarian approach which involves decision making based on favorable anticipated outcomes. Clearly, the fall of Lehman Brothers was a preventable man-made disaster. He enshrined a very poor risk management culture in the organization by offering highly leveraged Mortgage Backed Securities. Even if Mr. Fuld felt the economic tides were beyond his control as he proclaims, he should have at least sold the company early enough the way Merrill Lynchs CEO smartly did. But his ego as well as poor management insight took a better part of him. Lehman never engaged in real Corporate Social Responsibility, rather what they did was philanthropy with ulterior motives in mind. They never issued a CSR report of any kind depicting lack of transparency and accountability. There is no denying the hard and bitter truth that we are experiencing a global financial recession with many a nation counting their losses. We are in fact going through possibly the worst global credit crisis since the Great Depression. Given that the world is flatter and with advancing technology, global financial markets are now integrated thus making an otherwise national financial market a global phenomenon. By a simple click of a button, billions of dollars can seamlessly traverse national boundaries at the speed of light. Sadly, this global financial meltdown originated in USA due to the widespread subprime mortgage defaults, economic recession is affecting all the major players of world economy. By September 2008, the credit crunch, which started around 2006, had alarmingly ballooned into Wall Streets biggest crisis since the Great Depression as hundreds of billions in mortgage-related investments went sour; mighty investment banks that once ruled high finance firmament crashed. In the midst of this conundrum, accusing fingers are been pointed at different quarters; some blame the regulatory authorities over complacency and blind-faith, while some blame the private and investment banks over greed, poor corporate governance/practises and investment decisions. The worst hit directly were the insurance companies, investment banks, Hedge Fund operators, Large Mortgage Lenders such as Lehman Brothers, Merrill Lynch, Bear Stearns, Fannie Mae, and Freddie Mac etc. The United States government has been battling to starve off what has surely snowballed into a global economic recession by acquiring national mortgage giants: Fannie Mae, Freddie Mac, AIG as well as midwiving Bear Stearns Cos Incs sale to JPMorgan Chase. Bank of America took over Merrill Lynch. While these bailouts were going-on, a blind eye was turned on the struggling fourth largest investment giant- Lehman Brothers. Consequently, the Lehman brothers filed for bankruptcy on September 15, 2008 as a result of the Fed refusing to bailout them out or at least backstop their toxic assets. 1.1 CASE ISSUES The case issues discussed are: The Internal and External Environment We shall evaluate how these environments interacted with Lehman Brothers. Managerial Ethics Reactions are bound to be elicited as organizations continue to interact with their environments. Hence we shall attempt to assess how Lehman Brothers behaved and reacted in accordance with ethical theories and standards. Corporate Social Responsibility Lehman Brothers Social Responsibilities as well as their attendant consequences shall be evaluated. PART A 2.0 THE INTERNAL AND EXTERNAL ENVIRONMENT OF LEHMAN BROTHERS 2.1 The External Environment: Organizations do not operate in a vacuum because they derive their ultimate existence from the environment. Environmental factors whether specific or broad-based, influences an organizations strategy for survival and profitability. Lehmans external environment consists of its stakeholders such as Mortgage financiers, Hedge Funds, Pension Funds, Government Regulators, Commercial Banks, Investors, Credit Rating Agencies, employees, Home Owners, Small and Large companies, etc. See figure below for a schematic diagram of Lehmans overall environment. Figure 1 GLOBAL ECONOMICS DEMOGRAPHICS POLITICAL/ LEGAL TECHNOLOGICAL SOCIOCULTURAL Suppliers Pressure Groups LEHMAN BROTHERS Customers Competitors How uncertain and complex is Lehman Brothers environment? Below is the Uncertainty matrix used to evaluate how the external environment affected Lehman Brothers. Figure 2 ENVIRONMENTAL UNCERTAINTY MATRIX Source: Robbins, Bergman, Coulter, Management 4e, 2006, Pearson Education, Australia Due to the type and nature of business, Lehman Brothers falls within the cell block 4: which connotes a dynamic and unpredictable environment characterised with many components and a high need for knowledge. Hence, Lehman stands the chance of been influenced by the external environment which may reduce the influence of its managerial decisions and interventions. Lehman Brothers broader environment as it affected their activities, behaviour and outcomes are discussed under the following sub-headings using the Political/Legal, Economical, Socio-cultural and Technological changes, PEST analysis: Political/Legal: Lehman Brothers which was formed some 158 years ago was initially involved in assisting large corporate firms such as Sears, Roebuck and F.W. Woolworth, etc raise capital to expand their businesses. During the 1930s, the Lehman Brothers diversified into strictly Securities business when the U. S government forced all financial institutions to choose between commercial banking and Securities. Lehmans portfolio deepened following the repeal of the Glass-Steagall Act in 1999, during the Clinton administration. The act prohibited banks from investing on Wall Street, thus shielding consumers from riskier transactions. Once that protection was abolished, Lehman was able to gamble; and it became among the largest issuers of Mortgage-Backed Securities making its share price to climb from its 1994 price of $5 to $86 in 2007. As a result of Lehmans desperate attempts to compete fiercely with its core rival, Morgan Stanley for market share, it employed several under-arm tactics that exposed it to several bitter brushes with the law amounting to multiple litigations (See appendix 1). This further hurt its corporate image by brewing fear, panic, distrust amongst its stakeholders resulting in it been abandoned during its time of need. Lehman would have been saved just as Fannie Mae, Freddie Mac, Bear Stearns and AIG under the current political climate, but there were outstanding issues involved e.g. the Federal Reserve picked out big holes created by the toxic assets in Lehmans balance sheet coupled with their refusal to come out clean to the public. Instead, Treasury and Federal Reserve bosses, Messrs Henry Paulson and Ben Bernanke respectively, preferred to save others because they felt that allowing these (Fannie Mae, Freddie Mac, Bear Stearns and AIG) to fail would have resulted in a cataclysmic cascade of events that will consume not only in the U. S economy but the Worlds. Moreover, Mr Paulson never believed it was right to use taxpayers money to save Lehman. Whether this was a right decision remains to be seen as the Lehmans bankruptcy has inevitably crippled global financial markets worldwide. Economic: The Macro and Micro-economic environment which Lehman Brothers operated played a vital role in its demise. Indeed, what basically happened to Lehman was typically a simple economic case of supply outstripping demand. After the terrorist attacks of September 11, 2001, the Fed greatly lowered interest rates in other to stimulate economic growth and prevent deep recession. Expectedly, the largest Wall Street firms began reacting to this Federal Reserve policy of extremely low rates at which money was borrowed by purchasing billions of dollars of subprime mortgage loans. These were most likely bought from nonbank mortgage companies, which borrowed money from companies like Lehman in order to make loans and quickly resell them to Wall Street. Bear Stearns and Lehman Brothers almost monopolised this market as other players like Merrill Lynch were late arrivals to the highly leveraged/risky subprime lending and securitizing business. Lehman offered bulk loans to nonbank lenders, also purchasing mortgage products and then turning them into Asset Backed Securities (ABS), and then selling these bonds to end investors basically made up of the insurance companies, Hedge Funds, Pension Funds, Local Governments and foreign banks. The Securities and Exchange Commission escalated the already worsening economic situation in 2004 by encouraging these investment banks through the relaxation of the pre-existing limits on leverage. Expectedly, the leverage ratios of the five largest independent investments banks hit the rooftop (Labaton, 2008). Lehmans greedy internal financial policy did not help matters at all, as it offered potentially dangerous leverage ratios as much as 30:1, asset-to-equity ratio (Table 6, see appendix 2). Given this scenario, any 3% drop in value of assets completely blows out the entire value of equity thus rendering the company bankrupt. Nevertheless, Lehman grew rapidly, playing a dominant role in the securitisation market and the leveraged lending businesses posting quarter after quarter of record earnings from 2004 to 2007. Even after the economy had recovered, the U.S Fed notoriously kept interest rates low which made mortgage payments even cheaper and affordable thus greatly reducing the likelihood of defaults to barest minimum. Therefore, demand for homes began to escalate, sending prices up. In addition, millions of homeowners seized the opportunity of rate drops to refinance their existing mortgages. As the industry became saturated (as virtually everybody now owned a home), coupled with the never-ending competitive rivalry among lenders, the quality of the mortgages went down resulting in the erosion of underwriting standards. For the fear of inflation due to excess liquidity in the markets, Fed started increasing interest rates which eventually made mortgages already owned, worth less than the amount for which they were initially purchased due to higher payments. This sent widespread panic across all stakeholders which to loss of confidence and trust in financial markets leading to mortgage defaults and subsequent foreclosures. With this ugly scenario playing out, coupled with the Lehmans increasing inability of meeting its debt obligations, investors lost confidence in its stocks resulting to bankruptcy with about $613 billion in debt. Socio-cultural: These are factors such as behaviours, beliefs, values, demographic trends as they affect organization. A majority of Lehmans workforce belong to the generation Y. Generation Y are generally lifestyle oriented, tech-savvy, ambitious, impatient, etc. Because they generally flock to where the money is, Lehmans top management continued to do everything in its power to retain its best brains. With the continuous availability of low interest funds, change in consumer taste became the norm. An individual who otherwise wouldnt have been able to afford a house now had access to owning more than one house. This made the public adopt the culture tending towards investment rather than consumerism which affected other real sectors of the economy. This change in consumer taste favoured Lehman initially because of increase in mortgage demands. Soon Lehman had no borrowers for its mortgage products because everybody now had a house; and with the increase in interest rates, foreclosures became appare nt because the real weak financial status of its borrowers became obvious. Technological: Advancement in technology played a very double-edged sword role at Lehman Brothers. It brought about drastic reduction in the cost of creating mortgages. The growth of the internet coupled with easier availability of information about potential borrowers by the simple click of the mouse button, encouraged it to rely more heavily on convenient sources of information, such as credit scores and ratings, rather than on the more labour intensive time tested methods. It also made searching for a new set of borrowers easier and less costly, mortgage offerings using bulk email sending tools. On the other hand, these innovations created what economists call an agency problem. Since the mortgage originator was no longer going to hold the mortgage to maturity, but rather was going to immediately sell it to a securities firm and collect its fees upfront, it did not have a strong inclination to conduct a thorough appraisal of the loan. 2.2 The Internal Environment The internal environment of any organization basically symbolizes its culture, personality, commonly shared values and beliefs (Robbins S., et al, 2006). Companies will react to same circumstances differently due to the differing cultures that distinguish them. Furthermore, an organizations internal strengths and weaknesses as well as opportunities and threat, SWOT can play a vital role in its success or failure. 2.2.1 Lehmans Culture Lehmans CEO, Mr Richard Fuld in my opinion is viewed as an omnipotent leader because he single-handedly turned the fortunes of the company around when he assumed office in 1994. He ran the organization like a warfront where he enshrined a very strong culture amongst his subjects. His colleagues even nicknamed him Gorilla because of his imposing stature on the firm as nobody not even outsiders dared challenge his ideas, policies and decisions. This behaviour was not unexpected because Lehman has had a long history of hostilities, in-fighting and coup de tat within its ranks which had cost it its independence in 1984. Since we already know that the internal environment of an organisation is all about its culture, behaviour and reaction as to how it sees the external environment. For the scope of this report, we may not dwell so much on the positive culture of Lehman rather we shall take a critical look at how its culture might have played a role directly or indirectly in its demise using the seven dimensions of culture. Usually, attention to details is very much of required skill financial institutions must possess. But due to the competitive landscape and greed on the part of senior management, ethical details were ignored regarding the type of mortgage loans that were issued. Background checks werent performed to determine the credit worthiness of its mortgage borrowers Innovation and Risk tolerance X High innovation/High risk tolerance culture as evidenced in their highly leveraged mortgage securities offering which came through several complex financial innovative packages Outcome orientation X -Outcomes/result-oriented culture that focuses more on results rather than how they were achieved. This attitude made it lose sight on the illiquidity of the market during the impending crisis because of blind greed Short term performance reward culture throughout the firm not minding if these loans would survive in the long term or not Stability X Very strong/stable culture of lets maintain the status quo which resulted in their inability to adapt to the current financial situations. People orientation X -Poor and ineffective communication culture from top management to the bottom. Senior execs never took feedbacks from employees in the field seriously While senior management compensated themselves with cash bonuses, other employees were issued bonuses mainly in stock options and bonds. Lack of recognition for outstanding performance especially if it came from a lower employee A culture of lack of transparency among the senior executives. They never communicated the true nature of their liquidity to their employees and other stakeholders Aggressiveness X Overly aggressive culture in which they tried to bully, manipulate and outsmart the market but got their fingers burnt. Team orientation X Non collaborative competitions which dampened employee morale. The atmosphere was like that of a collegiate, people formed cliques and cartels. There was teamwork, but competition was basically on a personal level because of rewards that may accrue from individual performance The above listed cultural adoptions by Lehman went a long way in tarnishing their image before its global stakeholders which made it difficult for it to be trusted and rescued when its state of insolvency became apparent. Table 2.0 2.2.2 SWOT Analysis of Lehman Brothers SWOT DESCRIPTION Strengths -Lehman has a robust financial base with liquidity in excess of $42 billion as at Aug., 2008 which is capable of withstanding severe financial stresses (Scott S., Tanya A., 2008). It also has a strong franchise across its core investment banking, trading, and investment management businesses. Cutting-edge IT infrastructure is one of Lehmans strengths which it exploited maximally in the acquisition of customers more efficiently (see PEST analysis). Strong knowledgeable and skilled workforce Strong culture which is one of team-work, collaboration and knowledge sharing as evidenced by the rotation of workers around departments at least every two years Weaknesses -Poor managerial decisions which led to the inability or otherwise outright refusal to see the financial dangers coming. -Poor risk management and internal controls which led to its finances being exposed to risk of been wiped out within days. Strong culture which resulted in sluggish adaptability to the changing financial situations within and without the organization. Opportunities -The U.S Federal Treasury kept interest rates low for prolonged periods which made mortgage acquisition/repayments even cheaper and affordable which increased the patronage that accrued to investment banks, Lehman Brothers inclusive. Securities and Exchange Commission relaxed limits of financial leverage which gifted Lehman with the opportunity to offer more highly leveraged mortgage backed securities to its investors. But these seeming good opportunities turned out to be a curse in disguise. Threats Stiff competition coming from Morgan Stanley, Goldman Sachs, and Merrill Lynch in the hunt for new mortgage clients leading to the drastic reduction in the quality of mortgage instruments issued. More and more leverage was issued in other to remain competitive and remain profitable. The worst threat came from the Federal government backed Fannie Mae and Freddie Mac which had exclusive access to government subsidy (very low interest rate loans) making them issue the lowest rate mortgages thereby dominating the mortgage market. This then forced other players to issue even lower rates in order to stay in business. -Short selling of its stocks by brokers on the floor of the exchange which made the value fall freely thereby escalating investor anxiety resulting in loss of confidence. Negative market sentiments concerning its likely collapse due the earlier collapse of Bear Stearns, bailouts of Freddie Mac and Fannie Mae. Summary of the SWOT Analysis No doubt, Lehman is an indeed very large bank. With its robust financial war chest, experienced/diverse workforce and cutting-edge IT/IS at its disposal, it still went under. Lehman failed to utilize its strengths/opportunities to strategic advantage. Stiff competition, financial regulation laxity as well as poor management made it issue highly leveraged risky Mortgage Backed Securities, MBS which eventually wiped out its liquidity due to massive defaults in mortgage repayments which came as a result of increased interest rates to checkmate rising inflation. PART B 3.0 MANAGERIAL ETHICS These are laid down standards of conducts or moral judgements used in the discharge of business. More importantly, it refers to the rules and principles that define right and wrong conduct. It is the ultimate duty of the manager to effectively communicate and implement ethical issues within an organization. Lehman Brothers adopted the utilitarian view of ethics, in which decisions were made based on outcomes and/or consequences. They concerned themselves with making enough profits to satisfy the greedy yearnings of the top few at the top hierarchy of management not minding if their activities were detrimental to the welfare of others. This was clearly seen in the way mind boggling bonuses was dished out to the CEO, Mr. Fuld and other top management executives. According to Mr. Fulds report to the Federal Committee on Oversight and Government Reform, over $30 million was paid to him as bonuses. He also claimed that during the fruitful years, 2004-2007, an astonishing $16 billion was disbursed as bonuses out of which he alone grossed over $260 million. Below is a table showing a list of variables as they affect Lehmans ability to behave the way it did. Table 3.0 3.1 Factors affecting Lehmans ethical behaviour Factors affecting Managerial Ethics Comments State of moral development (managers) Since the ethical behaviour of managers is the single most vital factor that influences employee decisions (Robbins S., et al, 2006), we shall focus on the state of moral development of Lehmans CEO, Mr Fuld R. He operated at the preconventional level since his actions (selling highly leveraged Mortgage Backed Securities at all cost) were hugely inclined to the rewards and bonuses he and his cronies would get. Personality/Values (ego strength/locus of control) Values which represent personal convictions of what is right and wrong (Robbins S., et al, 2006) go a long way in influencing ethical behaviour. Mr Fuld has a very strong personality (ego strength) always believing that whatever he does is the right thing. Even at the collapse of Lehman, he never accepted responsibility for his actions and/or inactions. When he was alerted about what financial crisis they were in, by an insider, he waved it off. He also believes he has the ultimate power to control both his destiny as well as that of others (internal locus of control) Organizational Culture/Design -For the fact that Mr. Fuld took Lehman from rag to riches, he was seen as a demigod who was above the law. Hence, he was not subject to the organizations code of ethics and conduct. The organizational design/structure adopted a Top-Bottom management style of leadership. It enshrined a strong master-subordinate relationship which stifled information and knowledge sharing as no employee dare alert top management on their wrongly adopted strategies Lehmans culture is such that encouraged risk taking and constant innovation which later proved to be its undoing. The emphasis on individual achievement above group/team achievement encouraged employees as well as management to go extra lengths even if its unethical to perform e.g. the more mortgage clients you get, the more your bonus and recognition which was further boosted by its culture of short-term performance appraisals. Issue Intensity Greatness of harm: Lehman brothers never believed their actions (highly leveraged MBS) would have deleterious effects on its overall stakeholders after all, it believed its investors had being hedged against dangers through the Credit Default Swaps, CDS being issued by American Insurance Group, AIG -Consensus of wrong: Nobody dared oppose Mr. Fulds decisions, the very few that did were summarily sacked. So there was no basis for consensus of wrong here. -Probability of harm: Lehman believed the probability of foreclosures was minimal because of the seemingly prolonged low interests rates which created a lot of liquidity in the economy Immediacy of consequences: Mr. Fuld in his opinion believed that even if theres an eventuality of foreclosures, economic downturn and/or write downs, it would be for a short while because historically crises does occur every few years and the markets would always heal itself -Proximity to victims: Lehman pushed its mortgage customers far off using its distanced subsidiary, Aurora Loan Services as the issuer of its mortgages. This, it used to distance itself from its customers. By so doing, most people never knew the subprime mortgages were being offered by Lehman in order to maintain a clean public image and avoid responsibility for any untoward adverse effects of its unethical actions -Concentration of effect: Lehman ignored how concentrated the effect of foreclosures that would arise from its subprime mortgage sales would have on the national as well as global economy. They failed to see the broader picture of a likely global economic downturn. That necessitated their continuous unethical/risky financial actions. Conclusion Mr. Fuld of Lehman Brothers acted unethically in most of his decisions From the complex interplay of several factors that affected Lehmans unethical behaviour in the table above, we shall take a closer look at some of the ethical issues faced at Lehman Brothers below with a view to comparing opposing views on their conducts. Table 4.0 Opposing arguments concerning Lehmans managerial ethical decisions. Ethical issues Arguments for Arguments against Sale of risky/highly leveraged Mortgage Backed Securities Small percentage appreciation in value can translate to explosive profits for its balance sheet and investors alike Little decrease in value potentially wipes out the entire credit of the company rendering it insolvent. It is unethical to use investors hard earned monies to venture into greedy and risky ventures under whatsoever guise. Constant financial products reengineering and innovation This creates potential attraction for new customers as well as retaining the existing ones Causes confusion as to the understanding of the potential risks these products- offers portends. Unscrupulous bulking or bundling of mortgages This otherwise smart strategy helps to dilute the toxic effect of under-performing mortgage securities by lumping them with the good ones thereby creating a positive appearance leading to AAA ratings by rating agencies This strategy deceived many investors by underplaying the actual value and safety of their stock holdings leading them to be taking by surprise when their stocks became worthless Generating mortgage demands; packaging them, and then reselling them back to Wall Street and the investing public for large profits when in reality, there werent real buyers for them This was a way to create profits out of nothing This is an unethical attempt to manipulate the natural forces of demand and supply. Hiding behind their phony subsidiary, Aurora Loan Services to propagate falsehood contributed to the housing market bubble burst when it became evident there was no more demand for these mortgages Underwriting loans to questionable lenders e.g. FAMCO, Delta Funding Corp., etc and assisting them in cheating borrowers thereby violating consumer protection laws (Graham R., 2008, see bibliography) NA This led to widespread erosion of global investor and public confidence in the company which further contributed in its bankruptcy. Mr Fulds non-equity incentives were astronomical exceeding the 85th percentile. Furthermore, his bonuses grossly exceeded the normal industry average of bonus= base salary x Two. Mr. Fulds bonuses were five times his base salary (Nell M., 2008, see bibliography) NA This compensation practice doesnt align in favour of shareholder interests PART C 4.0 CORPORATE SOCIAL RESPONSIBILTY This is a broad term which is used to describe an organizations business activities as it affects the well-being of its stakeholders- customers, investors, employees, communities and the environment within which it operates. It is the justifiable ethical standard for which all of an organizations operational activities are measured (Davidson, P. Griffin, R, 2005). Achieving financial success in a manner that honours ethical values and respect people, communities, and the local environment is what defines CSR. An effective CSR program is one that is not mainly based on philanthropy or goodwill but rather on creating productive relationships with stakeholders who represent various social, financial and environmental concerns. Lehman Brothers adopted the hand of management approach to CSR in which it strongly believes in the advancement of its corporate economic interests as well as the protection and enhancement of the quality of life of its stakeholders. The conscience and practise of an organizations management is often a subject of frequent debate globally. Is it compulsory that an organisation must protect and improve the welfare of its specific and remote stakeholders? Well, the scope of this report is not to argue in favour of or against this motion but to analyse where Lehman got it wrong as regards to CSR. Lehman engaged in several philanthropic (socially responsive) activities all over the world where they had their businesses. Lehmans CSR spanned through the economic and legal levels terminating at the ethical level. Lehman used its philanthropy to avoid legal actions both from the government and its stakeholders while making sure its activities stayed within the ambit of the law. It engaged in philanthropy (in a socially responsive way) in my opinion because it did what it did just to create more global awareness (Public Relations for financial gains) (economic CSR) as well as to fulfil the general expectations society members place on corporations (ethical CSR). See Bibliography (URL link) for comprehensive details of their charity works. Corporate Social Responsibility goes beyond just philanthropy. CSR means accountability towards a firms various stakeholders e.g.: shareholders, employees, customers, local and international communities, etc. Unfortunately, Lehman and Bear Stearns produced no CSR report of any s

President Franklin D. Roosevelt’s New Deal Essay -- Franklin D. Roosev

In 1929, The Great Depression seized America. The country wallowed for four years in desperation, until a new leader was elected. Franklin Delano Roosevelt came to the presidency in 1933 focused and with a plan like never before. His so called â€Å"New Deal† was the innovation of policy at the time, and the public responded in turn. The country seemed to be on the steady process to recovery. The twelve years of desperation from 1929 to 1941 changed the face of America today. While kissing away college scholarships and hours at my government-sponsored after-school job, I had a revelation like a concertgoer at the ’69 Woodstock (minus the LSD): these two defining periods of American history were simultaneously changing my life despite the eighty years difference in that moment. As we continue on our own path to what we hope will repair the shards of our shattered American capitalism, I wondered if my faith in President Obama’s plan was justified. The similarities between the 2009 recovery and the New Deal were immense, and I sought my answer throu gh analyzing Franklin D. Roosevelt’s response to an even greater economic plight. Economists still debate the true success of the New Deal and the resounding impact it had on the country. Franklin D. Roosevelt’s New Deal policies eventually succeeded in rebuilding the American economy to functionality and its legacy is still proving effective in today’s modern economic dilemmas. In the 1920’s the United States was on the road to recovery. Having survived World War I and now an established international powerhouse, the U.S. economy was becoming a lion in world economics. The American stock market had risen to new heights, and had become a central force in the American economy. However, like a child with sugar and climbing a tree, this proved to be more of a demon than a blessing. An article published in the New York Times on March 24, 1929 described the credit frenzy of the decade: †¦the number of brokerage accounts had doubled in the past two years [1927-1929]. . . . It is quite true that the people who know the least about the stock market have made the most money out of it in the last few months. Fools who rushed in where wise men feared to tread ran up high gains. (Norris) This article was the doomsday prophecy that soon came true. The stock market suffered through scrapes and scratches in the months th... ...ss, n.d. Web. 9 Dec. 2009. . Grant, James. â€Å"From Bear to Bull.† Wall Street Journal – Eastern Edition 19 Sept. 2009: W1+. Academic Search Premier. EBSCO. Web. 9 Nov. 2009 Lohr, Steve â€Å"Echoes of 1933?.† New York Times Upfront 141.11 (2009): 8. MasterFILE Premier. EBSCO. Web. 9 Nov. 2009 Nicholas, Phil, Jr. "THE AGENCY THAT KEPT GOING: THE LATE NEW DEAL SEC AND SHAREHOLDER DEMOCRACY." Journal of Policy History 16.3 (2004): 212-238. America: History & Life. EBSCO. Web. 17 Nov. 2009. Norris, Floyd. "Looking Back at The Crash of 1929." The New York Times 15 Oct. 1999, web edition ed. Web. 17 Nov. 2009. . Olson, James Stuart. Saving Capitalism: The Reconstruction Finance Corporation and the New Deal, 1933-1940. Princeton, N.J.: Princeton University Press, 1988. Shlaes, Amity "Deal or No Deal? (Cover story)." Time 173.26 (2009): 38-42. Academic Search Premier. EBSCO. Web. 17 Nov. 2009. Zagorin, Adam, and Michael Weisskopf. "Inside the Breakdown At the SEC." Time 173.9 (2009): 34. MasterFILE Premier. EBSCO. Web. 28 Apr. 2010.

Economics of Computers :: essays papers

Economics of Computers Introduction and Background The computer service industry can be broken down into several categories ranging from reseller to consultant. Entrà © Computers / Executive Business Machines Inc. (EBM) was a sales and service organization for typewriters at its inception in 1972. However, as the corporate market shifted its needs from typewriters to word processors to personal computers, so did EBM change its product line to meet that demand. Now they are trying to compete in a very competitive low margin industry. They are a small single location company with annual gross revenues of twenty million (USD). However, as the profit margin and price of their product continually drop at a rate of forty percent annually, it becomes more difficult to show increasing gross revenues. They will need to find a place in the market, a niche, to survive and effectively compete with larger internationally known corporations as well as small local companies that are very much like their own. Indust ry Structure, Competitors The market is extremely competitive price-searchers market; product is often sold below manufacture's cost just to maintain market share and brand loyalty. It is a competitive price-searcher market because of the low barriers to entry and no regulations in price. Firms in this market are faced with a downward-sloping demand curve. The sellers range from international organizations, which retain over twenty thousand employees, to very small local shops with as few as two workers. The low-end of the market could be considered a Natural Monopoly because the average costs of production are continually decreasing as a result of higher production, improved technology and increased competition. However, there is a high end of market that would be deemed an Oligopoly, because it consists of a small number of sellers due to a very high barrier to entry. Typically the differentiated products are custom-built solutions that can only be provided by companies of the siz e and stature of a big six consulting firm or an internationally know organization such as Oracle or SAS. There are very high barriers to entry to compete in this market since the clients to this product are looking for large-scale international support. In order to implement a sophisticated differentiated product like Oracle financials or SAP, a company needs to retain an enormous overpaid staff of software engineers to develop, support, and implement such solutions. Very few companies are capable of retaining and / or attracting the staff necessary to provide such solutions.

Jean-Paul Sartres Extentialism & Taoism and the Movie Fight Club Essay

Man had to believe in something. That something was an ordering principle. And this was essential; it appeared, because the scientific temperament appeared not to assure man but to trigger him to drift even more aimlessly. Mankind needed a new book of lessons and a teacher as well. Humanity required it. What had occurred to produce such a yearning? Where was Reason? Where was God? With all the gods dead and buried, with nobody to believe in, the existentialists turned to humanity itself to unearth new values. While they acknowledged the nihilistic tendencies of bourgeois civilization, they were not themselves nihilists. They preserved a faith in humanity; a faith that guided them to the belief that only man could comprehend and resolve the tribulations of mankind. Existentialism sketched on a number of earlier ideas and one of its lasting strengths was that it survived to take in nearly two centuries of European thought into one composition. It was a perennial philosophy. It was th e fundamental Nietzcsheanism. As Sartre once wrote, "existentialism is an attempt to draw all the consequences from a consistent atheist position."(Sartre, 1962) According to Sartre, it had been Dostoevsky who had created that if God did not exist, and then anything would be allowed. This, in a nutshell, is the starting point, not the consequence or objective, of existentialism. If one really comprehends the sense of modern godless man's plight, one is at first condensed to nausea and despair. All of the human kind must go through that awful sense of depression that escort’s ones’ insight into the human condition and ourselves. Man is alone because he cannot be in contact with others. He finds himself in a world in which he is completely alien to othe... ...re consistent. And if person can be neither correct nor incorrect, how will he be able to be admired or held responsible, and how can he be accountable? References Bell, Ross Grayson: Chuck Palahniuk. Fight Club novel. Edward Norton Yale Interview on Fight Club. May 14, 2003 www.chuckpalahniuk.net official website Jean-Paul Sartre. Being and Nothingness (L'Être et le nà ©ant, 1943) Translated and quoted by Maurice Natanson A Critique of Jean-Paul Sartre's Ontology (1951) Sartre Jean-Paul  Existentialism is a Humanism (L’Existentialisme est un humanisme, Lecture given in 1946 Source: Existentialism from Dostoyevsky to Sartre, ed. Walter Kaufman, Meridian Publishing Company, 1989 http://members.aol.com/scissorside/jean.htm Boobbyer, Philip: Identity: Post Modernism Global Express UK. 1996-2003 http://globalexpress.initiativesofchange.org/issue6/inout.html

The Crysanthemums Essays -- Literary Analysis, John Steinbeck

John Steinbeck uses his unique literary style to write the short story â€Å"The Chrysanthemums,† where he brings his readers to a society of inequality amongst the genders. â€Å"The Chrysanthemums† depicts the challenges of Elisa Allen, a thirty five-year-old woman who is expected to be a traditional housewife. Her ongoing transformation throughout the story portrays the life of a woman trying to gain meaning in her dull life during the 1930’s. John Steinbeck's, â€Å"The Chrysanthemums,† shows the true feelings of the protagonist, Elisa Allen, through the use of femininity, self-awareness, and weakness. Elisa’s character undergoes a complete transformation of femininity, due to her conversation with the tinker. The story initially describes Elisa’s appearance using words associated with manliness, as Steinbeck states, her face is â€Å"strong, eager, and handsome,† and her figure is â€Å"blocked and heavy† (228). Furthermore, she wears a man's hat, heavy leather gloves, and a big apron that hides her printed dress (228). As a result, she is depicted as a woman with greater masculine qualities than feminine qualities. However, as soon as she encounters the tinker and notices his interest in Chrysanthemums, â€Å"the irritation melted from Elisa’s face† (232), and eventually reveals her womanly side. After the tinker left, she â€Å"scrubbed herself with a little block of pumice, legs and thighs, loins and chest and arms, until her skin was scratched and red† (236). She then bathes and puts on a dress to make herself look mor e feminine (237). For the first time, Elisa feels valued and special by the tinker. As a result, she puts more effort into beautifying herself than the house or garden. Therefore, one can see that although Elisa is i... ...ouse wives, and mothers who are fragile and insignificant. Instead, she is to remain in a â€Å"closed pot† (228), just as she is expected to do. As a result, she cries at the truth that she will always be reminded, that she is a â€Å"weak† and â€Å"useless† woman, which only increases her frustrations and dissatisfactions about her marriage (238). In conclusion, Steinbeck’s â€Å"The Chrysanthemums† illustrates the life of Elisa Allen, who struggles with womanhood, self-recognition, and impotence. Although, she is described as a modern house wife of the 1930's, it is clear, that she is far from the average traditional spouse. Rather, she yearns to be represented in the masculine world. However, through Elisa’s tribulations and limitations, she has unfortunately lessoned her stature. Therefore, one should learn to make the best use of our present rights of equality.