Organizational culture - 1263 Words

â€Å"Organization culture comprises the deep, basic assumptions and beliefs, as well as the shared values that define organization membership, as well as the member’s habitual ways of making decisions, and presenting themselves, and their organization to those who come in contact with it.† Clegg, Kornberger and Pitsis, 2008 The dictionary definition of a culture is â€Å"the ideas, customs, and social behaviour of a particular group of people or a society†. An organisation is made up of individuals and the culture of an organization defines how things are done in an organisation and what behaviour and actions are considered as acceptable or not acceptable. Hofstede defines culture as the collective programming of the mind that distinguishes†¦show more content†¦Thus the culture of an organisation has an influence and to an extent acts as a driver for everyone who forms a part of an organisation whether it is at an individual level or a group level. This view is supported by Harrison and Stokes when they say that â€Å"Culture impacts most aspects of organizational life, such as how decisions are made, who makes them, how rewards are distributed, who is promoted, how people are treated, how the organization responds to its environment, and so on†(9) In fact, these assumptions, beliefs, norms and values which are shared by the organisation’s members that can significantly affect strategy formulation and implementation. (10) Organisational cultural is in every sense just that, a culture. So not only does it act as an internal binding force which keeps the organisation together and in harmony, but it also defines how an individual should present himself and his organisation when he represents it. For example Price Waterhouse Coopers takes pride in the ever increasing diversity of its workforce and works to instil the idea of flexible but diligent working. This ideology could be considered as values forming part of PWC’s organisational culture. So whenever an employee comes in touch with a client these values will be automatically be reflected inShow MoreRelatedThe Importance Of Culture And Organizational Culture1647 Words   |  7 PagesThe importance of culture in the organization The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader s beliefs and values to organizational members, and especially newRead MoreOrganizational Culture Essay731 Words   |  3 Pages Edgar Schein, a famous theorists dealing with organizational culture, provides the following definition for the term: A pattern of shared basic assumptions that the group learned as it solved its problems that has worked well enough to be considered valid and is passed on to new members as the correct way to perceive, think, and feel in relation to those problems. (organizationalculture101) However, organizational culture is more than sharing assumptions used by a grou p to solve problems;Read MoreOrganizational Culture Essay1236 Words   |  5 PagesOrganizational culture Culture is something that encompasses all of us. It helps us to understand how things are created, acknowledged, developed and managed. In this context, culture helps to define and understand an organisation and how it works and manages. Organizational culture is a shared value system derived over time that guides members as they solve problems, adapts to the external environment, and manage relationship (Schein in Wooten and Crane 2003, Vol. 21(6), p.276). OrganisationalRead More Organizational Culture of Alibaba 1463 Words   |  6 Pagesestablished a strong company organizational culture based on a shared mission, vision and value system as the cornerstone of the company and its subsidiaries. They respect the spirit of entrepreneurship, innovation, and focus on meeting the needs of their customers. According to the founder, Jack Ma (August,2013), Alibaba’s organizational culture can be summarized with four simple words: openness, transparency, sharing, and responsibility.It is thank to the organizational culture, Alibaba has launched aRead MoreOrganisational Culture And Organizational Culture1730 Words   |  7 PagesOrganisational culture refers to ‘the shared beliefs and values guiding the thinkin g and behavioural styles of members’ (Cooke and Rousseau, 1988, in Bratton 2010: 334), indicating that employees who accept the common values of an organisation and put great effort on commitments are likely to build up a strong culture to an organisation. Edgar Schein (2004) proposed three levels of organisational culture. As employees go through changes, they gain experiences from the past, adapt to a new environmentRead MoreOrganizational Culture Essay1812 Words   |  8 PagesOrganizational Culture Organizations have personalities like individuals and like individuals, they have enduring and stable traits that help us predict their attitudes and behaviors. An organization’s culture may be hard to define but it has a major impact on the behavior of individuals in the organization. To understand one’s behavior in an organizational culture it helps to understand the dominant culture in an organization and to figure out how individuals come to learn that culture and howRead MoreThe Term Organizational Culture Essay2100 Words   |  9 PagesIntroduction A look at simply a couple of works that utilization the term organizational culture will uncover huge variety in the meaning of this term and much all the more in the utilization of the term society has no altered or extensively importance even in human sciences, however variety in its utilization is particularly discernible in the writing on hierarchical society. This is mostly identified with solid contrast in the reason and profundity of books and articles. Be that as it may, likewiseRead MoreThe Organizational Culture of Quinlans3389 Words   |  14 PagesThe Organizational Culture of Quinlans Introduction Quinlan has been UK’s foremost retail giant for a long period of time. By end of 1998 there was evidence of a crisis and since then the company has been on a decline. The company has been ignoring market changes and trying to maintain its corporate image and identity. This has caused the customers to drift to more fashionable brands causing huge loss of business to Quinlan. Presently the company is on a restructuringRead MoreDefining Organizational Culture : An Organization2382 Words   |  10 PagesDefining Organizational Culture With numerous meanings given to organizational culture, scholars claim that the field is grounded in the shared assumptions, attitudes, and behaviors accepted and enacted by employees within an organization, which affect its performance and overall welfare (Belias Koustelios, 2014). Another widespread definition of organizational communication often used by organizational scholars states that: â€Å"Organizational culture is the pattern of basic assumptions that a groupRead MoreQuestions On Organizational Culture And Leadership914 Words   |  4 PagesSchein, E (1992). Organizational Culture and Leadership. 2nd ed., San Francisco, CA: Jossey-Bass Edgar Schein outlines those characteristics in better understanding and assessing the culture and climate of an organization. A lot energy and emphasis is focused on the identification and application of an organization’s guiding principles. Schein suggests that our guiding values and principles are important, but it is in the organizations structure, culture, action that describes the true character

Report On Service Quality Of Remington Hotel - 1678 Words

Report on Service Quality of Remington Hotel Introduction The concept of quality holds a central place in the hotel industry where servicing is the main part of the business. Lewis and Booms (1983) commented that service quality is â€Å"a measure of how well the service match with the customer expectations† on a consistent basis. Parasuraman et al (1985, p. 42) stated, â€Å"Quality is an elusive and indistinct construct† Quality is comparison between expectation and performance. Parasuraman et al (1988) introduced Gap model and SERVQUAL for measuring the service quality. Expectancy-disconfirmation theory postulates that customer forms their satisfaction with a service as a result of subjective comparison between their expectation and†¦show more content†¦To wait for 40 minutes in lobby for mere registration and check in was annoying for the customers. The maxim - the first impression is the last impression –holds true. Responsiveness means the willingness and readiness of the employees to provide prompt service, which was not appreciable in the hotel. The other dimensions that need attentions are assurance and empathy, which are related with knowledge, positive attitudes and courtesy of the employees. Humanity is the dimension of service, which is provided to preserve dignity and self –respect of the client (Grzinic 2007, pp. 86-89). The customers trust and confidence in the service will be strengthened with polite and courteous attitudes of the employees. It was a very unwelcoming scene when a desk clerk was in hurry to leave the work without paying attention towards the guests waiting in a long queue. The lack of courtesy creates lack of trust in customers’ mind. Measuring gaps in customers’ expectations and perceptions After finding the expectation data, it was possible for Madeline to measure the existing gaps in expectation and the perception. The gaps were seen as higher in two dimensions: Reliability and Responsiveness. Madeline should deal with improvement is responsiveness first, as it affects the clients immediately and directly after their entrance into the hotel. It was important to avoid scene of disorder, disappointment and tension in the lobby and hotel. The gap between perception andShow MoreRelatedOperations Management23559 Words   |  95 PagesChapter 1-17 Operations Management Roberta Russell Bernard W. Taylor, III Organization of This Text: Part I – Operations Management Intro. to Operations and Supply Chain Management: Quality Management: Statistical Quality Control: Product Design: Service Design: Processes and Technology: Facilities: Human Resources: Project Management: Chapter 1 (Slide 5) Chapter 2 (Slide 67) Chapter 3 (Slide 120) Chapter 4 (Slide 186) Chapter 5 (Slide 231) Chapter 6 (Slide 276) Chapter 7 (Slide 321) ChapterRead MoreResources Capabilities20336 Words   |  82 Pages1980s, it sought to maintain its CSAC05 1/13/07 9:21 Page 128 128 PART II THE TOOLS OF STRATEGY ANALYSIS focus on serving the word processing needs of businesses by expanding into PCs. The venture was a costly failure.5 By contrast, Remington, another leading typewriter manufacturer, moved into products that required similar technical and manufacturing skills: electric shavers and other personal care appliances.6 l Eastman Kodak’s dominance of the world market for photographic productsRead MoreFundamentals of Hrm263904 Words   |  1056 PagesSenior Photo Editor Production Management Cover Design Cover Credit George Hoffman Lise Johnson Sarah Vernon Amy Scholz Laura Finley Dorothy Sinclair Sandra Dumas Susan McLaughlin Kevin Murphy Laura Ierardi Allison Morris Hilary Newman mb editorial services David Levy  ©Michael Eudenbach/Getty Images, Inc. This book was set in 10/12 ITC Legacy Serif Book by Aptaracorp, Inc. and printed and bound by Courier/Kendallville. The cover was printed by Courier/Kendallville. 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In this way, Sunbeam not only catered for the great Australian barbeque tradition, it developed a product that reflected changing consumer lifestylesRead MoreStrategic Marketing Management337596 Words   |  1351 Pagescontrol concepts 17.5 Responsibility accounting 17.6 Approaches to control 17.7 Some behavioural factors 17.8 Summary 18 Management control – 2 18.1 Learning objectives 18.2 Introduction 18.3 Controls 18.4 Taking corrective action 18.5 Management reports 18.6 Summary Bibliography Index Preface In writing the first edition of this book in the early 1990s, we were motivated by a concern to help improve the effectiveness of marketing practice. Twelve years and two editions later, our purposeRead MoreProject Mgmt296381 Words   |  1186 Pagesdevelopment 7.3.2.1 Earned value system (F.4) 7.3.2.4 E.V., performance status report 7.3.2.2 E.V., forecasts 7.3.2.3 EV., to complete index (EAC) 7.3.2.5 Schedule and cost variance Developing a Project Plan 4.2.2 Planning tools 6.2 Sequence activities [1.2] 6.5.1 Bar and milestone charts 6.5.2 Critical path method (.2) 6.5.2.6 Lead and lag activities [6.2.3] F.3 Project duration Chapter 14 Project closure Closure report 4.5.1.4 Organization processes (.5) [4.5.3 4.6.3.2] 4.6.1 AdministrativeRead MoreEssay on Fall of Asclepius95354 Words   |  382 Pagesreached record level around the world. Duncan leaned over in his chair and stared at Thomas computer screen. His eyes wave back and forth reading each line. * * * * * Unknown disease reached record level around the world The amount of reports of people infected with the new unknown disease has reached a new high today. The worldwide ratio of infected to uninfected is 1:1. No cure or treatments have been found for this illness which has been proven to have a fatality rate of one hundred

Significance of Integrated Marketing-Free-Samples for Students

Question: Write a Report on Integrated Marketing Communications. Answer: Introduction Marketing communication is the process in which company adopts different communication tools and techniques to spread information from one place to another place. In contemporary scenario, all the business entities are focusing on diverse methodologies(Armstrong, Kotler, Harker, Brennan, 2015). Hence, it can be said that marketing communication is a complex procedure that aids the business entity to communicate a message with the customers regarding the availability of products and services. The present research study has been made on Woolworths which operates business as a retail entity in Australia. Further, in the study discussion has been included regarding the importance of marketing communication in IMC. Along with this, theoretical communication model is also discussed which helps the business entity in managing suitable communication among business and customers. Along with this, the researcher has the also discussed several strategies that can enhance communication capability of Woolworths. Lastly, in the study, recommendations are being stated to meet contemporary needs of the customers. Findings And Discussion Theoretical communication model Communication strategy holds huge value in transferring information from one person to another; hence to specify the attributes, theoretical a model is being stated which is being proposed by Belch et al. in the year 2014. The theory states that use of modern tools and techniques are increasing at a faster rate which also aids in sharing and communicating information(Belch Belch, 2014). The Internet is considered as the primary source that aids that the business entities to grab the attention of a larger number of customers towards existing products and services. Several external agencies are working in this domain wherein they play a crucial role in formulating effective strategies for the business in the area of communication. Along with this, use of external tools is also amending to transfer information to different customers at a time. This also showcases the importance of elements of promotional mix(Blakeman, 2014). Strategies such as direct marketing, personal selling, sales promotions and development of public relations aids the organizations to sustain in competitive market for longer span. Proper sharing of information helps the business entity to acquire greater market share and alongside it also contributes in meeting defined aim and objectives. Advertising is essential in attracting larger number of customers and it is also useful in generating awareness among customers regarding the availability of products and services. At the same time, it also includes the importance of direct marketing which immediately changes the purchase decision of customers(Belch G. E., Belch, Kerr, Powell, 2014). According to positive perception, purchase of product takes place. Moreover, sales promotion is yet another technique that is used to promote the products and also to encourage the customers to buy the product. Company also provides discounts and schemes to the customers so that to amend the ratio of sales and also to enhance the profitability ratio. In emerging market, organizations are focusing on building effective relations with the customers for the purpose of becoming highly customer oriented. Thus, considering the same, companies are emphasizing on developing strong public relations to satisfy the customers and also to retain them for longer time period. This not only facilitates repeat purchase, but also it leads to create competitive edge over the rivalries. Therefore, summing up it is evident that communication strategy of every business entity is different; however the tools are quite similar to use(Blakeman, 2014). Communication strategy states that advertising and promotional mediums are useful in terms of sharing information among customers in the best possible manner. Prior communicating information among the customers, it is essential for the business entity to show greater consideration towards the use of marketing channel. This will aid in communicating the message abruptly among the customers. At the same time, it can also work in enhancing customer base. To operate the business successfully in the market place, it is crucial for the organization to define communication objectives(Luxton, Reid, Mavondo, 2015). This can also aid in adopting suitable standards to attain organizational goals. In addition to this, the budget is vital to be developed so that resource allocation process can be managed in an optimum manner. Integrated marketing communication shows a link between promotional strategies and elements of the marketing mix; hence appropriate strategies should be utilized in the form of advertising the products and services(Thorson Moore, 2013). Hence, this can also enhance the performance of the business entity in external competitive m arket place. Analysis And Evaluation Importance of understanding communication in IMC Communication plays most important role in the organization as it is direct influences the purchase behavior of the target market and in turn, allows business to accomplish desired goals and objectives(Carroll, 2015). Further, it is one of the ultimate purposes of every company to communicate business information with its target market in an efficient manner with the motive to strengthen customer base. In short, without communication, the concept of Integrated Marketing Communication is of no use, and it directly acts as the challenge in accomplishing the desired objectives. It allows in building the positive perception of the firm in the mind of the target market and serves as the development tool(Schlinke Crain, 2013). Further, it is a well-known fact that every consumer may not perceive products of the enterprise positively and due to this reason, it is mandatory for the business to build the positive image with the help of effective communication strategy. The primary mode of communication takes into consideration advertising, social media, print media, etc. through which it becomes easy to share information with the customers(Ewing Ramaseshan, 2015). Selection of appropriate communication method through the selection of right channel allows the company in gaining the competitive edge, and in turn, all the challenges present in the external environment can be tackled quickly. In short, communication is considered as the key to success that enhances business performance in the market. In case if any organization does not focus on communication with its target market then customers will not be aware of the products and services offered in the market(Flors, 2014). In the modern era, the concept of social media as a communication tool has gained popularity where large numbers of businesses have adopted this tool so that customer base can be enhanced and along with this the most crucial information linked with products, services can be shared. Considering the case of Woolworths Ltd where organization believes the concept of Integrated marketing communication as most important. Further, business has employed a large number of strategies for sharing information linked with products with its valued customers. The central communication platform is the physical stores of the company which directly acts as the primary source of attraction. All sort of convenience and comfort are provided to the customers so that they are brand loyal towards the products. Moreover, direct marketing and customer email strategy concept have been undertaken through which proper communication with the target market takes place(Nirjar, Acharya, Ojha, 2014). Apart from this, social media channels are also conducted where products are promoted through the assistance of sales promotion strategies such as offering discount and another form of offers on the products. It allows in attracting a large number of customers and in turn sales revenue of the comp any increases through this(Saenko, Akhmetov, Mamatelashvili, Pismennaya, 2016). The market where Woolworths Ltd operates is highly challenging where significant challenges such as competition, political barriers, etc. have adversely affected the operations of the company. Therefore, this is the main reason for undertaking effective communication strategy for building the relationship with the customers and rendering high-quality products to the target market(Manser Payne, Peltier, Barger, 2017). Woolworth Limited approach to IMC The selected business enterprise is making use of various integrated marketing communication channels and tools. For example, it has adopted advertisement as a tool for carrying out marketing and promotion of its products and services. In simpler term, the advertisement can be described as a paid formed of non-personal communication. Woolworth Limited advertises its products and services on newspaper, television and online mediums. Furthermore, Woolworth limited is also considered as the top spenders in Australia in terms spending resources in the advertisement(Patti, Hartley, van Dessel, Baack, 2017). The rationale behind using advertisement as an integrated marketing communication tool is that it helps in communicating, interacting with people in the market and at the same time it results in enhancing the brand image and brand equity of Woolworth Limited. The retailer is also making use of communication tools such as social media to promote its different services and products. In last few years, social media has emerged as one of the biggest and most potential platforms for businesses regarding marketing products and services. The use of social media channels is carried out with a purpose to interact with customers and seek inputs from clients about the process of new product development(Percy, 2014). Other than this, the use of social media as a marketing communication tool support Woolworths limited in improving customer service and maintain a strong brand image in the marketplace. The increasing users of social media have helped Woolworths limited in finding out new customers and enhance the figure of sales and profitability. The marketing and promotion of product/services offered by Woolworths limited are carried out on social media platforms such as Instagram, Facebook, and Twitter. Social media is very cost effective regarding marketing communication tool, and therefore, it is contributing a lot to the overall success of the Australian retailer(Parente Strausbaugh-Hutchinson, 2014). Another form of internet marketing communication tool which has been used by the selected business enterprise is email. The brand has maintained an excellent strategy of emailing its customers at regular intervals. These emails help Woolworths limited to pass information to customers about new products, services, modification in existing products and arrival of new offers. Thus, emails play a crucial role in increasing the demand for the companys products and services among people in the market. Sometimes, the business also makes use of integrated marketing communication channels such as direct marketing to increase the existing figures of its sales and profitability. It can be stated that Woolworths limited approach towards IMC is quite efficient and it has supported the brand in accomplishing its short and long term business objectives(Provost, 2014). Communication tools such as direct marketing have helped Woolworths limited in finding out new customers and enhance its existing market share. The use of direct marketing has provided the organization with an opportunity to develop a list of new and potential prospects who can become future customers of the brand. Apart from this, the use of direct marketing has resulted in increasing the rate of up sell or repeat purchase(Royle Laing, 2014). It has supported the selected company in retaining its old customers in the best possible manner. On the contrary of this, it can be expressed that the best thing about Woolworth's limited approach to IMC is that it has developed the effective system of monitoring and the company carries out changes in its IMC strategy at regular intervals. Recommendation It can be recommended that Woolworths limited should focus on identifying its target audience before formulating marketing communication mix. The rationale behind this is that selection of target audience will support the retailer in the selection of appropriate and more practical tools and techniques of communication. Along with this, selection of target audience is also essential in defining factors such as what to communicate and when to communicate. It is suggested that the business enterprise should emphasize more on formulating the objectives and aim of communication. The reason behind this is that goals and aim will provide a clear cut direction to a company regarding where it should place its efforts and resources linked with communication. It can also be recommended that Woolworths limited should uncover its unique selling propositions and should display the same through marketing communication tools. It can be expressed that the use of unique selling proposition will support the organization in differentiating itself from the other players operating in the retail industry of Australia. In addition to this, it will give the clear reason to customers in terms of why they should prefer and purchase products offered by Woolworths limited. At the time of selecting and implementing the tools of marketing communication, it is required by Woolworths limited to ensure that the way in which messages are delivered to target audience remains consistent. It can be expressed that consistency in messaging will support in the development of Woolworths limited as a strong brand in the marketplace. From the overall analysis, it has been found that Woolworths Ltd more relies on advertising and another form of promotional tools. So it is recommended to an enterprise to focus on sales promotion strategies where offering discount on the continuous basis can allow in enhancing sales volume and can act as the main tool for the customer attraction. Therefore, sales promotion strategies must be integrated into the marketing plan. The overall survey must be carried out in the market with the motive to know whether the present communication strategies of a company are capable enough in sharing information linked with the products or not. Through this, it is possible to modify the current advertising modes. Time to time new information must be updated on the social media platform such as facebook where the different type of events can be organized through which customer involvement is possible. Highlighting the main advantages associated with purchasing the products of a company can surely be beneficial for the organization and in turn can act as the major source of competitive advantage. The concept of microblogging must be undertaken by the business through which short sentences that can be framed from a promotional point of view where short videos can be shared with the target market that can influence the purchase behavior of the target market. Conclusion From the above study, it can be inferred that integrated marketing communication provides businesses with a potential platform to interact with customers and identify their changing demand. In addition to this, the tools linked with IMC have supported Woolworths limited in creating awareness about its products and services in the market. The tools have also contributed a lot in creating demand among people in the marketplace. Integrated marketing communication is important because it helps business to gain the competitive advantage over the other market players operating in the industry. It can be inferred that the approach of Woolworths limited towards IMC is competent enough to accomplish its long term goals and objectives. References Armstrong, G., Kotler, P., Harker, M., Brennan, R. (2015). Marketing: an introduction. London: Pearson Education. Belch, E. G., Belch, A. M. (2014, February 10). Advertising and promotion: An integrated marketing communication perspective. Retrieved August 25, 2017, from Advertising and promotion: https://hfs1.duytan.edu.vn/upload/ebooks/5183.pdf Belch, G. E., Belch, M. A., Kerr, G. F., Powell, I. (2014). Advertising: An integrated marketing communication perspective. New York: McGraw-Hill Education. Blakeman, R. (2014). Integrated marketing communication: creative strategy from idea to implementation. Maryland: Rowman Littlefield. Carroll, C. E. (2015). The handbook of communication and corporate reputation . New Jersey: John Wiley Sons. Ewing, M. T., Ramaseshan, B. (2015). Integrated marketing communications: Conflicts of interest, politics and performance. Switzerland: Springer, Cham. Flors, L. (2014). From 360 communication to integrated marketing communication. In How to Measure Digital Marketing. London: Palgrave Macmillan UK. Luxton, S., Reid, M., Mavondo, F. (2015). Integrated marketing communication capability and brand performance. Journal of Advertising , 37-46. Manser Payne, E., Peltier, J., Barger, V. A. (2017). Omni-channel marketing, integrated marketing communications, and consumer engagement: a research agenda. Journal of Research in Interactive Marketing . Nirjar, A., Acharya, M., Ojha, D. (2014). Integrated Marketing Communication in Government Programmes: A Look at Rural Development Programmes in India. Metamorphosis , 1-15. Parente, D., Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: A guide to marketing communication plans. Massachusetts: Cengage Learning. Patti, C. H., Hartley, S. W., van Dessel, M. M., Baack, D. W. (2017). Improving integrated marketing communications practices: a comparison of objectives and results. Journal of Marketing communications , 351-370. Percy, L. (2014). Strategic integrated marketing communications. Abingdon: Routledge. Provost, P. (2014, May 5). 7 Steps to Develop an Effective Marketing Communications Strategy. Retrieved August 25, 2017, from 6P marketing: https://www.6pmarketing.com/articles/branding-science/72-marketing-strategy/359-7-steps-to-develop-an-effective-marketing-communications-strategy Royle, J., Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer Model for the communication industries. International Journal of Information Management , 65-73. Saenko, N. R., Akhmetov, I. V., Mamatelashvili, O. V., Pismennaya, E. E. (2016). Research in action integrated marketing communications as the elements of information and virtualization market relations. International review of management and marketing . Schlinke, J., Crain, S. (2013). Social media from an integrated marketing and compliance perspective. Journal of Financial Service Professionals . Thorson, E., Moore, J. (2013). Integrated communication: Synergy of persuasive voices. Abingdon: Psychology Press

Change Management Methods of an Organisation

Question: Discuss about the case study Change Management for Methods of an Organisation. Answer: Introduction As opined by Hayes (2014), Change Management is the approach to transitioning the process and methods of an organisation to gain more profit in future. The change in the use of business process, budget allocation, resources and modes of operations of a company is required to achieve the goals and objectives (Cameron and Green 2015). In this study, the various theories of change management will be discussed to analyze the relevance of those theories in the recent time of working environment. The theories of Lewin, Prosci Adkar, Kotter and Balanced Scorecard will be discussed in this study comparing with the management procedures of the organizations ING and QUANTAS. The study will examine the processes of these theories whether the ideas are relevant in present day working setting or not. Impact of Various Change Models in Todays Working Environment There are various Change models developed by different scholars that can be implemented in the organizations to gain the organizational change for the betterment of the company. The globalization and constant innovation of technology is forcing the organizations to implement changes in their organizational structure and business processes. Therefore, the four theories of change management are explained in the following to analyze the application in present time. Lewin Theory Kurt Lewin has presented the Three Phase Model of change management in 1940 but it is still relevant in the 21st century too. The concept of Lewins three-phase model theory is focusing on the procedure of the change implementation in an organisation. The model is consists of three steps such as, Unfreeze, Transition and Freeze. According to Bartunek and Woodman (2015), the organizations need to implement the change management policies to improve the company image or to tackle the increasing competition. It is an example of a straightforward change management system. According to the model the three steps has to be followed by an organisation to attain the change in the working environment. The three steps are, Unfreeze The first step of this model is concentrating on the external and internal forces that are continuously restraining the change to be implemented. If the company members are not agreed with the management that the change is required then the company will not be able to implement the change. Therefore, as per the model the company management have to determine the needs to change in the business procedure. Then they have to convince the employees to understand the need of changing the business policies with reducing the provocative events. It was seen in the ING bank to implement the change in their bank. Most of the staff and management was not following the rules and regulations of the company after informing them for numerous times about the merging policies of their with the PostBank, then the management have to understand the need for bringing change in the organizational system to resist this situation (Hornstein 2015). Transition The transition is the step where the change is actually implemented in the organisation. According to Lewins theory, when the organizations unfreeze the other provocations within the company and can about implementing the changes, then transition can be possible. By using this step, QUANTAS should communicate with the employees to know the interest of and feedback of them about it. After understanding these, the management can take the action plan for bringing the change in the organization. This is only can be possible with empowering action by involving the people in the process. Freeze As opined by Frankland et al. (2013), the change can be implemented only when the management will reach the last step of this Three Phase Model. The third step is referring to the real action is taken place to bring the change actually. This can be activated with introducing new systems of rewarding the employees and by celebrating the success of the company. These activities will motivate the employees to work with more dedication. This will help the management to reinforce the new rules and regulations for the benefit of the ING and QUANTAS. Figure 1: Lewins Change Management Model (Source: Worley and Mohrman 2014) Prosci ADKAR Theory According to the Change Management Model of Prosci, every organizational change can be executed by changing individuals perspective towards change. It is mainly used to understand the queries how, why and when to implement the changes. As opined by Shah (2014), it is the truth that the when people think about changing something, they expect others to accept the changes first. However, if they change individuals thinking regarding implementing the change then the change will be introduced in a fast manner. The theory is based on the five basic steps that have to abide by every individual to accept the change management. According to Prosci, these five steps are called as the building blocks of successful change in an organisation. These five steps are Awareness, Desire, Knowledge, Ability and Reinforcement (Parker et al. 2013). As per his theory, if the people in an organisation can follow these five steps for their individual change, then the organisation should be able to implement the change in their company. The five steps are Awareness Awareness refers to the process of understanding the need for the change in the organisation. If every employee in the organization feels the need for implementing the changes in the company to develop the condition of the business, then the management is forced to think about introducing new things there. As stated by the Adkar in his Change Management Model, individual awareness is very essential for the employees to take the initiative to implement the change in the ING and QUANTAS. The management has implemented the changes in the bank at the time of merging with the Postbank. Desire The second step of the model is the desire to support the change for the organizational betterment. Although the management of an organization tries to implement new ideas in their company, still the company should not acquire the changes if not every employee of that company is interested in it. The organizations like ING and QUANTAS use this element to introduce the changes in the internal rules and regulations. Knowledge The third step of this model is referring the knowledge about the change that can be implemented in any organisation. Knowledge refers to the skills and behavior that is required to bring the change in the company to increase the overall profit of the organization. Ability According to Booth (2015), ability is the skill that is very essential to understand the capacity of the employees within an organization. If the employees are not able to understand the changes then they cannot able to implement these in their work life. Reinforcement Change cannot be successful if it is only implemented in an ING and QUANTAS to betterment of any organisation. However, the change has to be reinforced to sustain the change there. Figure 1: Prosci ADKAR Change Management Model (Source: Shepherd et al. 2014) Kotter Theory Another scholar Kotter has presented the change management theory that is relevant still in the working environment. Therefore, the organizations are still using this model as their way to implementing the change and it is working in a good way to introduce change in their organisation. As opined by Hornstein (2015), the change management model of Kotter is referring to the eight steps to get success. Every business needs to implement the new innovative technologies for improvement and aims to remain in the top in business in the market. Therefore, this model is very relevant even nowadays to bring change in an ING and QUANTAS (Shepherd et al. 2014). Kotters change management model consists of eight steps that are needed to lead the change in an organisation where the company should implement a change with the help of executing these steps (Burke 2013). It helps the organisation to identify the elements of changes that is required to bring success for the company. The steps are Create sense of urgency The first step of this model refers the creation of the people in an organisation to create the sense of urgency for implementing the changes. According to Kotters model, if the whole unit of an organisation is not interested to accept the changes, then the company successfully implements the changes for betterment. Build Guiding Coalition The people have to convince the related people before implementing the change in an organisation. This process can help the organizations to identify the leader in the ING and QUANTAS who can set a change coalition to identify the change in the company. Create a Vision for Change Every company should set a value and goal for the organisation to create the change strategy for attain the high profitability. If the company cannot give any clear vision to their employees then they cannot able to explain the idea to their employees. However, setting a vision will help them to make people understand about the change vision. Communicates the Vision The fourth step of this model is referring to communicating the vision with the employees to make them understand about the requirement of change management in the organisation. Communication is very important to attain the vision through implementing change. Enable Action by Removing Barriers The organizations that want to implement the changes then will face various problem regarding implementing it. Therefore, the companies have to reduce the obstacles first to bring the changes. Create Short-term Wins Change management is a continuous process to implement a new idea within an organization. Therefore, this step is helping the management to set small targets and then work on that to get achievement. It will make the company employees interested to accept the change. Build on the Change Sometimes the organizational heads make an early decision to celebrate the changes in their business, but they failed to understand the ultimate effect of the change. Therefore, the company should not hurry to conclude anything. Anchor the Changes in corporate Culture The Company should utilize the change procedure as their continuous process to enforce the system in their organization. Therefore, the model is suggesting that the organizations can use the changes in their day-to-day corporate culture. The Kotters model has implemented by ING to change their organizational vision and objectives. This has enabled them to implement the changes in the business strategies. Likewise, the organization QUANTAS also has used the model. Figure 1: Kotters Change Management Model (Source: Mishra 2013) Balanced Scorecard (Kaplan and Nortons) This is a strategic planning and management system to measure the performance of an organisation presented by Kaplan and Nortons. The name of the theory is as the Balanced Scorecard. According to Gibbons and Kaplan (2015), this system has four perspectives with which the organization management can check the performance. All the perspectives are measuring the objectives, targets and initiatives of the company to reach the vision with implementing the change. The four perspectives are Financial Approach The financial approach of this model is successfully encouraging the look towards the shareholders. It helps the he organizational heads to understand that in what process they will appear before the shareholders. It is measured by the cash flow, operating income etc. Internal Business Process These perspectives enables to identify and measures the internal business procedures that will be implemented through the change management. This will help the management team to analyze the perfect business processes to satisfy the shareholders as well as the customers. Cycle time, yield, unit cost etc can be changed. Learning and Growth This approach helps to achieve the vision of an organization. It can be achieved through implementing new generation of products, to develop market competition and life cycle of products. Customer - This helps to measure the customers aspects toward the organizational changes are mainly measured by this perspective. This helps the organization to understand the customer. This was not applicable in the organizations ING and QUANTAS. Figure 1: Balance Scorecard Change Management Model (Source: Gibbons, R. and Kaplan 2015) The discussions of the various change management models are explained in contrast with the companies ING and QUANTAS. The ING bank has implemented the Lewins theory to bring the change in the company at the time of merging with the PostBank. They have also utilized the Prosci ADKAR model to implement the changes in the individual employee. In addition, the Quantas has used the Kotters change management model to include the changes in the organization for betterment. Conclusion The study has explained the four theories of Change Management to analyse their importance in the present time. The change is the only constant thing in the business platform and this is required to develop any organisations business processes. Therefore, the study has discussed the processes of four change management systems that are very relevant in present day business situations too. It has found that in the organization like ING and QUANTAS, the change management models have been used to bring change in the organisation and the companies had reached a good position in the business market. Reference List Bartunek, J.M. and Woodman, R.W., 2015. Beyond Lewin: toward a temporal approximation of organization development and change. Black, S., Washington, M. and Rasheed, H., 2014. Business Model Innovation and the Balanced Scorecard. Booth, S.A., 2015.Crisis management strategy: Competition and change in modern enterprises. Routledge. Burke, W.W., 2013.Organization change: Theory and practice. Sage Publications. Cameron, E. and Green, M., 2015.Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers. Frankland, R., Mitchell, C.M., Ferguson, J.D., Sziklai, A.T., Verma, A.K., Popowski, J.E. and Sturgeon, D.H., Applications In Internet Time, Llc, 2013.Integrated change management unit. U.S. Patent 8,484,111. Gibbons, R. and Kaplan, R.S., 2015. Formal Measures in Informal Management: Can a Balanced Scorecard Change a Culture?. Hayes, J., 2014.The theory and practice of change management. Palgrave Macmillan. Hornstein, H.A., 2015. The integration of project management and organizational change management is now a necessity.International Journal of Project Management,33(2), pp.291-298. Mishra, S., 2013, September. Relevance of Kotters Model for Change in Successfully Implementing Lean. InIFIP International Conference on Advances in Production Management Systems(pp. 540-547). Springer Berlin Heidelberg. Parker, D., Verlinden, A., Nussey, R., Ford, M. and Pathak, R.D., 2013. Critical evaluation of project-based performance management: change intervention integration.International Journal of Productivity and Performance Management,62(4), pp.407-419. Shah, M.H., 2014. An Application of ADKAR Change Model for the Change Management Competencies of School Heads in Pakistan.Journal of Managerial Sciences,8(1). Shepherd, M.L., Harris, M.L., Chung, H. and Himes, E.M., 2014. Using the Awareness, Desire, Knowledge, Ability, Reinforcement Model to build a shared governance culture.Journal of Nursing Education and Practice,4(6), p.90. White, K.M., 2016. Change theory and models: Framework for translation.Translation of Evidence into Nursing and Health Care. Worley, C.G. and Mohrman, S.A., 2014. Is change management obsolete?.Organizational Dynamics,43(3), pp.214-224. Create sense of urgency

Aethelflaed, Lady of the Mercians, Saxon Ruler

Aethelflaed, Lady of the Mercians, Saxon Ruler Aethelflaed (Ethelfleda) was the eldest child and daughter of Alfred the Great and sister of Edward the Elder, king of Wessex (ruled 899-924). Her mother was Ealhswith, who was from the ruling family of Mercia. Who She Was   She married Aethelred, lord  (ealdorman) of Mercia,  in 886. They had a daughter, Ælfwynn. Aethelflaeds father Alfred put London in the care of his son-in-law and daughter. She and her husband supported the Church, giving generous grants to local religious communities. Aethelred joined her husband Aethelred and her father in fighting against Danish invaders. How Aethelred Died In 911 Aethelred was killed in battle with the Danes, and Aethelflaed became the political and military ruler of the Mercians. She may have been the de facto ruler for a few years during her husbands illness. After her husbands death, the people of Mercia gave her the title Lady of the Mercians, a feminine version of the title that her husband had held. Her Legacy She built fortresses in western Mercia as a defense against invading and occupying Danes. Aethelflaed took an active role, and led her forces against the Danes at Derby and captured it, and then defeated them at Leicester. Aethelflaed even invaded Wales in retribution for the killing of an English Abbott and his party. She captured the wife of the king and 33 others and held them as a hostage. In 917, Aethelflaed captured Derby and was able to take power in Leicester. The Danes there submitted to her rule. Final Resting Place In 918, the Danes in York offered their allegiance to Aethelflaed as protection against Norwegians in Ireland. Aethelflaed died that year. She was buried at the monastery of St. Peter at Gloucester, one of the monasteries built with funds from her Aethelred and Aethelflaed. Aethelflaed was succeeded by her daughter Aelfwyn, whom Aethelflaed had made a joint ruler with her. Edward, who already controlled Wessex, seized the kingdom of Mercia from Aelfwyn, took her captive, and thus solidified his control over most of England. Aelfwyn is not known to have married and may have gone to a convent. Edwards son, Aethestan, who ruled 924-939, was educated at the court of Aethelred and Aethelflaed. Known for:  defeating the Danes at Leicester and Derby, invading Wales Occupation:  Mercian ruler (912-918) and military leader Dates:  872-879? - June 12, 918 Also known as:  Ethelfleda, Ethelflaed,  Aelfled, Æthelflà ¦d, Aeoelfled Family Father: Alfred the Great (Ælfred), ruled Wessex 871-899.  He was the son of  Ãƒâ€ thelwulf, King of Wessex and his first wife, Osburh (Osburga).  Mother: Ealhswith of the Gaini, daughter of  Ãƒâ€ thelred Mucil  of the Gaini tribe and Eadburh, a Mercian royal.  As was Saxon custom, she was not crowned or titled queen.Brother: Edward the Elder, king of Wessex (ruled 899-924)Sister: Aethelgiva, Abbess of ShaftesburyBrother: Aethelwaerd (three sons with no descendants)Sister:  Aelfthryth, married Baldwin, Count of Flanders (Aelfthryth was the 4th great-grandmother of  Matilda of Flanders, married to William the Conqueror, and thus an ancestor of later British royalty)Husband: Aethelred (Ethelred, Æthelrà ¦d), Earl of MerciaDaughter: Aelfwyn (Aelfwynn, Ælfwynn, Ælfwyn,  Elfwina)

How To Write A Good Definition Essay, with Topics

How To Write A Good Definition Essay, with Topics How to write a definition essay (Writing Guide) How to start How to write a main part How to write conclusion Outline example List of topics There are quite a number of essays that students are supposed to learn in high school and in college. Most of these skills are not just crucial for class work and exams, but rather they are also when it comes to daily activities at the place of work. As such, these are skills that go along the way into helping students tackle career chores with more ease. The definition essays tend to be long and thorough. Though it is not as popular as most of the other essays, it can prove to be a challenge. As such, where given a choice, students are advised to choose those words which have plenty to write about. This is relative to the lengthy nature of the essay and could mean that the student may run out of ideas before they can meet the length threshold. There are those words that have a definite meaning, such as book, tree or even glass among others. However, there are those that have a more abstract meaning depending on the person giving the definition. In an example, a word such as honor, love or honesty will have a personal and an academic meaning. As such, the word choice for a definition essay is crucial, relative to the determination of the amount of content a student can write about the same. The essay is written in the best choice of words for the readers to understand what the writer is trying to explain. It is important that the writ er does not use jargons to explain a word as they are trying to get the audience to understand. As such, simplicity and clarity are the keys when writing a definition essay. As such, the definition essay elicits a debate among the readers and between the readers and the writer, with regard to what the definition of a certain word is. It is important the writer is able to engage the audience in a battle to determine the true meaning of a word from a personal and academic point of view. Structure of a definiton essay Like most of the other essays, the importance of the outline cannot be underestimated. This is relative to the fact that the outline acts as the framework within which all the ideas in the essay are organized. It is also among the baselines which help the writer brainstorm on the ideas to include, check for weak links in the content development, reduce the time it takes to write the essay and refine the ideas outlay for the audience. Below is an example of what the outline of a definition essay will look like. Introduction Attention getter Thesis statement Body Body paragraph one: History and origin of the word Body paragraph two: Dictionary explanation and use of the word Body paragraph three: Personal definition Conclusion Following the definition essay outline guide stipulated above, it is crucial to understand the various aspects which go into making a good definition essay. Each of the sections on the outlines play a crucial role to help the audience engage the mind of the writer and vice versa, in the debatable explanation of what a word will mean to either of the parties. Introduction for a definition essay The introduction of the essay is crucial, as the writer uses it to help the audience connect with the debate and the ideas floated in the essay. The first part of the introduction is the attention getter. This is also referred to as the hook, as it is developed in a manner to get the attention of the readers. There are quite a number of articles that can be found online, among other mediums and thus it is upon the author to make sure they get the attention of the readers for them to engage with the article beyond the topic. The writer has to make sure they have the best start for the paper to keep the readers going further into the text. Even for the teachers, it is important that the student is able to keep them interested, which translates into better grades. Thesis The other part of the definition essay is the thesis statement. Like the attention getter, it is important for the writer to have the ability to develop a thesis statement which draws the readers to wanting to know more about the word. The trick here is to make sure the thesis statement is framed as an argument. In an example, the word patriotism does not mean that citizens have to blindly follow the values of the government, but those the nation was founded on. This creates an element of debate, where the author may argue, the sitting government does not inspire patriotism among the citizens. This is a topic likely to spark a sharp debate and makes sure the audience is eager to get to the bottom of the debate. The thesis statement in this case is clear, which means that the writers should always avoid being vague. At the same time, when writing a definition essay, the writer should ensure the thesis statement is short and precise. It also has to be a complete sentence, not just a ph rase that leaves the audience hanging, while identifying the purpose of the paper. Like an outline, the thesis statement is a guide, but one that defines the structure of the paper more than the outline does. The bottom line is that, other than the thesis statement being interesting, it should also be relevant to the debate developed in the paper. Body paragraphs The body of the definition essay articulates the debate established in the thesis statement an elaborated in the introduction. The first paragraph of the body paragraphs debates the issues regarding the history and origin of the paper. The first paragraph is associated with introducing the word to the audience and helping them to better understand the baseline of the word and what it to be discussed in the paper. The first paragraph also helps to prepare the audience for the debate in the definition essay. The second paragraph of the paper is associated with defining the word according to dictionary meaning. The author may choose to select a number of reputable dictionaries to use, in the definition of the word. The second paragraph is a section that relates to getting the meaning of the word with an academic approach. The third paragraph of the definition essay is associated with the personal definition of the word. How to write conclusion for a  definition essay The last part of the definition essay is the conclusion, where the writer summarizes the main points building the argument and then closing with an attention getter, by referring to the introduction and thesis statement. Finalizing definition essay To make sure the definition essay meets the academic and professional threshold, it is important to proofread the essay. This is to make sure there are no mistakes which could lower the integrity of the essay. When choosing the right word for the perfect essay, there are some elements to consider which include using a word that is abstract and has a complex meaning. It is important that the word is debatable and one which is familiar. The other important aspects include reading up on the dictionary meaning of the word and then researching on the origin of the word. List of topics for a definition essay: Love Success Honor Honesty Patriotism Hate Terrorism Farming Technology Laziness Cheating Marriage Relationship Family Rudeness Respect Sacrifice Boyfriend Wife Husband Girlfriend Home Fashion Beauty Privacy Rights Heroism Courage Fear Poverty Masculinity Feminism

Enterprise and Entrepreneurial Management Essay - 5

Enterprise and Entrepreneurial Management - Essay Example Moovers and Shakers must focus heavily on internal human resources strategy to ensure that service staff members positively and enthusiastically represent the business brand. Their performances coupled with moderate and competitive pricing will help Moovers and Shakers gain market interest and achieve better profitability. Moovers and Shakers 1. Introduction Moovers and Shakers is a small, mobile food service business that will be serving Coventry, the 12th largest city in the UK maintaining a population of 316,900 as of 2011 (Coventry City Council 2012). Coventry maintains a diverse variety of different commercial centres, stadiums for sporting events, and five colleges and universities that will assist in sustaining profit for the business. Moovers and Shakers will consist of three mobile food carts, staffed in different locations within the boundaries of Coventry operating between the hours of 11am and 8pm, except during special events (e.g. sporting, school functions or arts and drama) in order to capture lunch and dinner crowds; especially commercial professional customers. Moovers and Shakers will carry a limited, yet targeted menu consisting of hamburgers, gourmet franks, nachos and cheese, pretzels and accompanying frozen and fountain soft drinks. What makes Moovers and Shakers so extraordinary will be the moderate pricing structure and an emphasis on food serving flair provided by recruited operators (staff) to make the Moovers and Shakers dining a complete and interesting experience. Moovers and Shakers will be established as a sole trader organisation. This structure will provide the owner with more control over the business, ranging from administration to accounting, and this business structure requires much less regulatory restrictions and licensing necessary for a small start-up. The sole trader format also gives the business owner much more control over exit in the event that the business is not achieving expected profitability or in the event of the owner seeking a different business opportunity. This is due to the fact that the sole trader maintains 100 percent liability for the company. Until the business is able to expand, maintaining profit control for a single business owner is necessary to ensure proper wage accumulation without split capital. The key to success for Moovers and Shakers is food quality and variety, however it is the finesse and flamboyance of food preparation by the mobile cart operators that will gain customer interest and build more allegiance to the Moovers and Shakers brand identity. Mobile cart operators will operate the frozen drink machines and accessories much like a high-class bartender, putting on a display for customers during preparation. These expert employees with the skills for food prep panache will perform a variety of tossing and juggling when assembling the customers’ products, giving Moovers and Shakers a rapid reputation for a stylish food experience. As such, the business plan will focus on recruitment and retention needs as employees will be vital to building a positive brand and how to reduce risk of losing qualified, expert employees. The business plan will also rely heavily on advertising in order to compete. The business plan therefore focuses on models of marketing that are known to bring more buyer interest and how Moovers and Shakers intends to apply these lessons to this innovative mobile food business. The

Finance and Accounting Research Paper Example | Topics and Well Written Essays - 1250 words

Finance and Accounting - Research Paper Example It is without doubt that table salt had developed into a well-rounded and mature enterprise but Sea Shore Salt had grown gradually over the years however, on the peril of its competitors that were not well known in the business. The company had developed a legacy with its brand name that was ideally known and recognized in the area giving the company a competitive advantage despite it being very difficult to pronounce the name quickly (Sages & Grable 57). Bernice reported to work on January 2, 2006 and everything was seen to be going smoothly until Mr. Brinepool sent her a memo on the company’s cost of capital, giving her the task of explain to all the other managers the company’s weighted average cost of capital. Bernice had not expected such a task so soon and hence, she stayed at the office late that night to prepare for any questions that may be shot at her during the meeting that was scheduled to be held the following day. Bernice at first analyzed and summarized t he company’s recent balance sheet to and later on wrote down some points she had discovered: (Sages & Grable 58). The bank where the company had taken a loan charged an interest that was similar to the existing market rate bearing in mind that the long- term debt had previously been issued not so long ago. This meant that the book as well as the market values of the debt could not have a great difference in margin. The company had issued stock about 35 years ago at the time when the interest rates were significantly lower than they are now. The stock were expected to rise by a large margin over the years and eventually become very lucrative in future though this did not happen. The current stock which was initially preferred was now trading at only $70 per share contrary to what the management expected the share price to stand at by this time. Common stock was expected to trade at $40 per share by this time. Earnings for the subsequent year were projected to be at about $4 an d the dividends shareholders were going to receive at the end of the fiscal year was probably expected to be around $2 per share. Sea Shore Salt had a tradition of using 50% of her earnings to pay dividends to its shareholders and the rest would be retained by the company for future expansion and growth. Fig 12. 2 Mr. Brinepool’s cost of capital memo Sea Shore Salt Company Spring Vacation Beach, Florida CONFIDENTIAL MEMORANDUM DATE: January 15, 2006 TO: S.S.S. Management FROM: Joe- Bob Brinepool, president SUBJECT: Cost of capital This memo gives and insight and understanding about the company’s long- term policy concerning rates to be considered in terms of making decisions involving capital investment. Recently, many people have started to raise questions and there has been an air of confusion with regards to this disturbing matter. Sea Shore Salt analyses investment by discounted a cash flow that is discounted. The problem in discount rate is the weighted average co st of capital experienced by the company after tax. The weighted average cost of capital is the combination of the amount of returns that investor expect a company to generate at the end of each fiscal year. These investors include persons or institutions such as banks, bond holders or even stock investors; this is on top of the already present stock owners. Sea Salt financings are summarized in the following table Amount (in millions) percent of total rate of return Bank loan 120 20% 8% Bond issue 80 13.3

Stone Henge Research Paper Example | Topics and Well Written Essays - 1000 words

Stone Henge - Research Paper Example The only identified comparable sites of similar epoch (Flagstones and Stonehenge in Dorset) are just a quarter of Avebury size. The ditch alone was 21m (69ft) wide and 11m (36ft) deep, with its key fill carbon dated to around 3400 - 2625BC (Castleden 34). A later date in the current period is more likely though excavation of its bank has validated that it has been expanded, presumably by use of materials excavated from its ditch. The fill on the foot of the final ditch may therefore post-date any other in a former, shallower ditch that does not exist any more. Since there lacks written account from the era of the Avebury Stonehenge construction, nobody knows for sure. Neolithic people resided here as evidenced by some artifacts found inside the sites and in burial barrows. They do appear to line up with spiritual events that are readily recognized. However, the why question remains a clandestine. This has sparked many legends about their origin and purpose dealing with the entirety f rom King Arthur to the Devil. So far none of the mysticism has any historical reliability. The circles predate them all, except perhaps of course the Devil (Sugden 1)! Aubrey Burl estimates a sequence of construction starting with the South and North erected around 2800BC, followed by the Outer Circle and the henge around 200 years later, the 2 avenues added around 2400BC. A timber circle of 2 concentric rings, acknowledged through archaeological geophysics conceivably stood in the northeast part of the outer circle, though this waits excavation testing (John and Atkinson 9). A ploughed barrow can also be seen from the air in north-western quadrant. The henge had 4 entrances, 2 opposing ones on north by north-west and south by south-east line, and 2 on an east by - and west by south-west line. ‘In spite of being a man-made construction, it was featured in the 2005 TV program Seven Natural Wonders as among the wonders of West Country for the reason that it consists of natural c onstituents. The henge is a World Heritage Site and a Scheduled Ancient Monument’ (unesco.com). Excavation at Avebury Stone Henge has been quite limited. Sir Henry Meux placed a trench over the bank in 1894, which consequently gave the first suggestion that this earthwork was constructed in two stages. The site got surveyed and excavated spasmodically about 1908 to 1923 by a team of workers under the command of Harold St. George Gray. Gray Harold was able to establish that the Avebury constructors had dug down 11m (36ft) into the natural chalk during excavating the henge ditch, creating an outer bank 9m (30ft) high around the entire perimeter of the henge as well as using red deer horn as their main digging tool (LLC 46). Harold Gray recorded the ditch’s base as being flat and 4m (13ft) wide although some late archaeologists have grilled his use of untrained labor to excavate the ditch, suggesting that its form might have been different. Harold Gray found few artifacts in the ditch filled but did recover dispersed human bones, jawbones being principally well represented. At about a depth of 2m (7ft), Gray encountered a complete woman’s skeleton 1.5m (5ft) tall who had been possibly buried there (LLC 51). Alexander Keiller, an archaeologist re-erected majority of the

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/AVvXsEj7WWOhCiXzYBkMf-C_y8H735F_keCJtCjRqgV2pxn0gT5jqB_3DpB6TgoH2DM41PIU22T2shNlhCkhV3Spmf9344mdKxfr9UJR3MDkr12DYtqssGxElOgUkCBwc56imn5bd0qbmgFdH_o/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/AVvXsEgfhMYcLEQwpm7INDvSnXkOSk_lpxrrM8-a0aMIgwOkyrW_Ckq_kwBnMiKBM898N82D6z0gNxJ4v_T-887FMEXaXMnG483BYrHsvLtFFf6Te0wH8lhxOpiyW8N0xkIEC0CfyUE2lUlE1Vw/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