Outback Steakhouse Case Essay Example for Free

Outback Steakhouse Case Essay Outback has clearly defined strategic goals that give a clear sense of where the company is headed in the future. The company intends to drive its future growth though a four pronged strategy. First, they want to continue to expand in the U.S. with an additional 300-350 Outback concept restaurants. They also plan to develop a second system of franchise restaurants called Carabbas. After that, the founders may develop additional themed restaurants, and branch out into international franchising. To achieve these goals, several operational goals have been defined. The owners will continue to focus on the development of Outback, because â€Å"there is still a lot of work left to do there.† Also, expanding Outback to greater levels will provide a strong foundation for the Carabbas venture. As Joe Coffer said, â€Å"I see [Outback] as the McDonald’s of the future, except a step up.† The operational strategy right now is to continue expanding Outback operations, and continuing to build their reputation as the premier mid-level steakhouse. There are many standing plans outlined in the text, but two of note deal with the promotional strategy and staff training. All job candidates for the restaurant staff are required to pass an aptitude test that assesses basic skills such as making change. Also, every candidate is interviewed by two people, and undergoes psychological profiling. With regards to promotion, Outback does local advertising on billboards and TV, but most of their promotion is done through community involvement. Actions speak louder than words, and the founders know that – their community involvement helps â€Å"build friends and an image of great food at a great price.† A single use plan was put into effect when the company needed additional venture capital to fund Outback’s early stages. They planned to offer a portion of the company for public sale. A project schedule was developed, outlining exactly what was needed for the plan to be a success. They needed to raise at least 1.5 million to finance the purchase of equipment for the next year. They wanted to sell enough stock, priced at about 20% of the highest restaurant stock, to finance about 18 months of operation. Their well-defined project schedule paid off, and by 1994, sixty-eight million dollars were raised. 1. The Outback Steakhouse uses various types of controls that ensure high quality, efficiency, and customer satisfaction. One feedforward control has been the development of the Outback kitchen. Bob Basham designed the kitchen for peak efficiency, occupying 45% of the area of the restaurant. Bob decided that by overdesigning the kitchen and underdesigning the dining area, the restaurant is better able to operate during times of peak demand, while maintaining a high level of quality. Controls are also used while the restaurant is in operation. The ratio of servers to customers at Outback is much lower than at the typical restaurant, and this is the key to Outback’s outstanding customer service. Outback employees typically only handle three tables at a time, so customers are served more quickly, and don’t feel rushed when ordering. Feedback controls are used when a new restaurant is opened and new employees are hired. The restaurant staff has four practice nights when charity events are held or the local media are entertained, before the restaurant is actually opened to the public. This gives the new employees some experience, but also provides a basis for discussion afterwards. By discussing the events of the practice nights, areas requiring improvement can be identified before the restaurant is open to the public. In a way, this is both a feedback and a feedforward control. External controls are not used extensively at Outback because of the relati vely informal organizational structure. Of course, company policy and procedures would be outlined during the orientation process, but there is not always a manager or supervisor watching you. The closest thing to external control outlined in the case would be Tim Gannon’s meeting and training sessions – upper management ensuring that the front-liners are behaving in a way that is consistent with the Outback philosophy. Internal controls are emphasized at Outback, through self-directed learning and personal growth. Trudy Cooper calls it the â€Å"learn-teach-learn approach.† As Chris Suiilvan explains, â€Å"Outback gives people a lot of opportunity to make some mistakes, learn, and go on.† 2. Both positional and personal power are utilized at Outback. The attention that Outback employees get during the hiring and training process would fall under legitimate power. The people that are training the new employees are experienced, knowledgeable workers the new employees are clearly their subordinates. However, aptitude testing and one-on-one training would make them feel important. Such attention can be strenuous and intimidating, but in the long-run this attention would send the message that the company cares and wants you to excel. Referent power is one of the most beneficial types of power to have in an organization, but is also one of the most difficult to create. At the ten meetings per year that Tim Gannon holds with staff members, referent power is utilized because Tim sounds like a cool guy. Employees work hard for him because he earns their respect and people want him to like them. Also, experience power would be present because of Tim’s extensive management knowledge and experience. People respect him because of the years he has invested in Outback. On the positional power side, reward power is used almost exclusively. Outback has provided ownership opportunities at three levels: at the individual restaurant level, through joint venture and franchise opportunities, and though the employee stock option plan. The first two opportunities require an initial investment, but the return is excellent. The stock option plan, I think, is an excellent idea, because it benefits everyone, and rewards loyalty and hard work. You are rewarded in proportion to what you have contributed to the success of the venture.

US Global Financial Crisis: Timeline of Causes and Effects

US Global Financial Crisis: Timeline of Causes and Effects Introduction: The global financial crisis of 2008-2009 began in July 2007 when a loss of confidence by investors in the value of securitized mortgages in the United States resulted in a liquidity crisis that prompted a substantial injection of capital into financial markets by the United States Federal Reserve, Bank of England and the European Central Bank. In September 2008, the crisis deepened, as stock markets worldwide crashed and entered a period of high volatility, and a considerable number of banks, mortgage lenders and insurance companies failed in the following weeks. Scope The crisis in real estate, banking and credit in the United States had a global reach, affecting a wide range of financial and economic activities and institutions, including the: Overall tightening of credit with financial institutions making both corporate and consumer credit harder to get; Financial markets (stock exchanges and derivative markets) that experienced steep declines; Liquidity problems in equity funds and hedge funds; Devaluation of the assets underpinning insurance contracts and pension funds leading to concerns about the ability of these instruments to meet future obligations: Increased public debt public finance due to the provision of public funds to the financial services industry and other affected industries, and the Devaluation of some currencies (Icelandic crown, some Eastern Europe and Latin America currencies) and increased currency volatility, Background In the years leading up to the crisis, high consumption and low savings rates in the U.S. contributed to significant amounts of foreign money flowing into the U.S. from fast-growing economies in Asia and oil-producing countries. This inflow of funds combined with low U.S. interest rates from 2002-2004 resulted in easy credit conditions, which fueled both housing and credit bubbles. Loans of various types (e.g., mortgage, credit card, and auto) were easy to obtain and consumers assumed an unprecedented debt load. As part of the housing and credit booms, the amount of financial agreements called mortgage-backed securities (MBS), which derive their value from mortgage payments and housing prices, greatly increased. Such financial innovation enabled institutions and investors around the world to invest in the U.S. housing market. As housing prices declined, major global financial institutions that had borrowed and invested heavily in subprime MBS reported significant losses. Defaults and losses on other loan types also increased significantly as the crisis expanded from the housing market to other parts of the economy. Total losses are estimated in the trillions of U.S. dollars globally. While the housing and credit bubbles built, a series of factors caused the financial system to become increasingly fragile. Policymakers did not recognize the increasingly important role played by financial institutions such as investment banks and hedge funds, also known as the shadow banking system. Some experts believe these institutions had become as important as commercial (depository) banks in providing credit to the U.S. economy, but they were not subject to the same regulations. These institutions as well as certain regulated banks had also assumed significant debt burdens while providing the loans described above and did not have a financial cushion sufficient to absorb large loan defaults or MBS losses. These losses impacted the ability of financial institutions to lend, slowing economic activity. Concerns regarding the stability of key financial institutions drove central banks to take action to provide funds to encourage lending and to restore faith in the commercial pape r markets, which are integral to funding business operations. Governments also bailed out key financial institutions, assuming significant additional financial commitments. Cause Of The Financial Crisis Various causes have been proposed for the crisis, with experts placing different weights upon particular issues. The proximate cause of the crisis was the turn of the housing cycle in the United States and the associated rise in delinquencies on subprime mortgages, which imposed substantial losses on many financial institutions and shook investor confidence in credit markets. However, although the subprime debacle triggered the crisis, the developments in the U.S. mortgage market were only one aspect of a much larger and more encompassing credit boom whose impact transcended the mortgage market to affect many other forms of credit. Aspects of this broader credit boom included widespread declines in underwriting standards, breakdowns in lending oversight by investors and rating agencies, increased reliance on complex and opaque credit instruments that proved fragile under stress, and unusually low compensation for risk-taking. The abrupt end of the credit boom has had widespread finan cial and economic ramifications. Financial institutions have seen their capital depleted by losses and write downs and their balance sheets clogged by complex credit products and other illiquid assets of uncertain value. Rising credit risks and intense risk aversion have pushed credit spreads to unprecedented levels, and markets for securitized assets, except for mortgage securities with government guarantees, have shut down. Heightened systemic risks, falling asset values, and tightening credit have in turn taken a heavy toll on business and consumer confidence and precipitated a sharp slowing in global economic activity. The damage, in terms of lost output, lost jobs, and lost wealth, is already substantial. Beginning with failures caused by misapplication of risk controls for bad debts, collateralization of debt insurance and fraud, large financial institutions in the United States and Europe faced a credit crisis and a slowdown in economic activity. The crisis rapidly developed and spread into a global economic shock, resulting in a number of European bank failures, declines in various stock indexes, and large reductions in the market value of equities and commodities. Moreover, the de-leveraging of financial institutions further accelerated the liquidity crisis and caused a decrease in international trade. World political leaders, national ministers of finance and central bank directors coordinated their efforts to reduce fears, but the crisis continued. At the end of October a currency crisis developed, with investors transferring vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc, leading many emergent economies to seek aid from the Inter national Monetary Fund. Ultimately, looking for a cause of the current financial crisis, it is critical to remember that organizations failed to do a number of things: Truly adopt an enterprise risk management culture. Embrace and demonstrate appropriate enterprise risk management behaviors, or attributes. Develop and reward internal risk management competencies, and Use enterprise risk management to inform management decision-making in both taking and avoiding risks. Enterprise risk management to be effective must fundamentally change the way organizations think about risk. When enterprise risk management becomes part of the DNA of a companys culture, the warning signs of a market gone astray cannot go unseen so easily. When every employee is part of a larger risk management process, companies can be much more resilient in the face of risks. It is an important lesson to learn now, before the cycle renews itself and businesses find themselves facing the next cycle of business failures, lapses in risk management and shortcomings in governance. The cycle does not have to repeat itself as it always has in the past. Enterprise risk management is an important key to preventing it. Enterprise risk management, when designed and implemented comprehensively and systemically, can change future outcomes. When it is practiced fully, enterprise risk management does not just help protect businesses from setbacks, it enables better overall business performance. Effects Of The Financial Crisis Economic Effects And Projections Global Aspects A number of commentators have suggested that if the liquidity crisis continues, there could be an extended recession or worse. The continuing development of the crisis prompted fears of a global economic collapse. The financial crisis is likely to yield the biggest banking shakeout since the savings-and-loan meltdown. The United Kingdom had started systemic injection, and the worlds central banks were now cutting interest rates. Regulatory Proposals And Long-Term Solutions A variety of regulatory changes have been proposed by economists, politicians, journalists, and business leaders to minimize the impact of the current crisis and prevent recurrence. However, as of April 2009, many of the proposed solutions have not yet been implemented. These include: Ben Bernanke: Establish resolution procedures for closing troubled financial institutions in the shadow banking system, such as investment banks and hedge funds. Joseph Stiglitz: Restrict the leverage that financial institutions can assume. Require executive compensation to be more related to long-term performance. Re-instate the separation of commercial (depository) and investment banking established by the Glass-Steagall Act in 1933 and repealed in 1999 by the Gramm-Leach-Bliley Act. Simon Johnson: Break-up institutions that are too big to fail to limit systemic risk. Paul Krugman: Regulate institutions that act like banks similarly to banks. Alan Greenspan: Banks should have a stronger capital cushion, with graduated regulatory capital requirements (i.e., capital ratios that increase with bank size), to discourage them from becoming too big and to offset their competitive advantage. Warren Buffett: Require minimum down payments for home mortgages of at least 10% and income verification. Eric Dinallo: Ensure any financial institution has the necessary capital to support its financial commitments. Regulate credit derivatives and ensure they are traded on well-capitalized exchanges to limit counterparty risk. Raghuram Rajan: Require financial institutions to maintain sufficient contingent capital (i.e., pay insurance premiums to the government during boom periods, in exchange for payments during a downturn.) A. Michael Spence and Gordon Brown: Establish an early-warning system to help detect systemic risk. Niall Ferguson and Jeffrey Sachs: Impose haircuts on bondholders and counterparties prior to using taxpayer money in bailouts. Nouriel Roubini: Nationalize insolvent banks. Reduce mortgage balances to assist homeowners, giving the lender a share in any future home appreciation. Timeline Of Events Predecessors Mar-2000 Dot-com bubble peak Jan-2001 First Cut in Fed Funds rate for this cycle (from 6.5% to 6.00%) Stock market downturn of 2002 Jun-2003 Lowest Fed Funds rate for this cycle (1%) Late 2003 Lowest 3mo T-bill rate for this cycle (0.88%) 2003-2004 Prolonged period of low Fed Funds and positively sloped yield curve Jun-2004 First increase in Fed Funds rate for this cycle (from 1% to 1.25%) 2003-2005 Period of maximum inflation of the United States housing bubble 2004-2006 Slow rise in Fed Funds rate with positively sloped but narrowing yield curve Feb-2005 Greenspan calls long-term interest rate behavior a â€Å"conundrum† Jun-2006 Fed Funds reach peak for this cycle of 5.25% Oct-2006 Yield curve is flat Events Of 2007 March, 2007 Yield curve maximum inversion for this cycle August, 2007: Liquidity crisis emerges September, 2007: Northern Rock seeks and receives a liquidity support facility from the Bank of England October, 2007: Record high U.S. stock market October 9, 2007 Dow Jones Industrial Average (DJIA) 14,164 Events Of 2008 January, 2008: Stock Market Volatility February, 2008: Nationalisation of Northern Rock March, 2008: Collapse of Bear Stearns June 27, 2008: Bear Market of 2008 declared July 1, 2008: Bank of America buys Countrywide Financial July, 2008: Oil prices peak at $147 per barrel as money flees housing and stock assets toward commodities September, 2008: Emergency Economic Stabilization Act of 2008 September, 2008: Troubled Assets Relief Program September, 2008: Bankruptcy of Lehman Brothers September, 2008: Federal takeover of Fannie Mae and Freddie Mac September, 2008: American International Group#Federal Reserve bailout September, 2008: Merrill Lynch sold to Bank of America Corporation September, 2008: Morgan Stanley and Goldman Sachs confirmed that they would become traditional bank holding companies September, 2008: partial nationalization of Fortis holding October, 2008: Large losses in financial markets world wide throughout September and October October, 2008: Passage of EESA of 2008 October, 2008: Icelands major banks nationalized November, 2008: China creates a stimulus plan November, 2008: Dow Jones Industrial Average (DJIA) touches recent low point of 7,507 points December, 2008: The Australian Government injects economic stimulus package to avoid the country going into recession, December, 2008 December, 2008: Madoff Ponzi scheme scandal erupts December, 2008: Belgium government resigns as a result of Fortis nationalization Events Of 2009 January 2009: Blue Monday Crash 2009 January 2009: U.S. President Barack Obama proposes federal spending bill approaching $1 trillion in value in an attempt to remedy financial crisis January 2009: Lawmakers propose massive bailout of failing U.S. banks January 2009: the U.S. House of Representatives passes the aforementioned spending bill. January 2009: Government of Iceland collapses. February 2009: Canadas Parliament passes an early budget with a $40 billion stimulus package. February 2009: JPMorgan Chase and Citigroup formally announce a temporary moratorium on residential foreclosures. The moratoriums will remain in effect until March 6 for JPMorgan and March 12 for Citigroup. February 2009: U.S. President Barack Obama signs the $787 billion American Recovery and Reinvestment Act of 2009 into law. February 2009: The Australian Government seeks to enact another economic stimulus package. February 2009: 2009 Eastern European financial crisis arises. February 2009: The Bank of Antigua is taken over by the Eastern Caribbean Central Bank after Sir Allen Stanford is accused by U.S. financial authorities of involvement in an $8bn ( £5.6bn) investment fraud. Peru, Venezuela, and Ecuador, had earlier suspended operations at banks owned by the group. February 23, 2009: The Dow Jones Industrial Average and the SP 500 indexes stumbled to lows not seen since 1997. February 27, 2009: The SP index closes at a level not seen since December 1996, and also closes the two month period beginning January 1 with the worst two month opening to a year in its history with a loss in value of 18.62% March 2, 2009: The SP index finishes the first trading day of March with a drop of 4.7%, the worst opening to a March in NYSE history. March 6, 2009: The UK Government takes a controlling interest in Lloyds Banking Group by insuring their debt. March 8, 2009: United States bear market of 2007-2009 declared March 18, 2009: The Federal Reserve announced that it will purchase $1.15 trillion in U.S. assets ($750 billion in mortgage backed securities, $300 billion in Treasuries, $100 billion in Agencies) in a bid to prop up liquidity and lending to spur economic growth. The markets initially rallied on the news, however concerns began to grow regarding long term devaluation of the U.S. dollar and subsequent inflation. March 23, 2009: In the United States, the FDIC, the Federal Reserve, and the Treasury Department jointly announce the Public-Private Investment Program to leverage $75-$100 billion of TARP funds with private capital to purchase $500 billion of Legacy Assets (a.k.a. toxic assets). June 3, 2009: The Australian Government announces that the Australian economy did not show negative growth for two consecutive quarters, and thus has not officially entered recession. Literature Review The financial crisis motivates the below literatures to express their views from different angles, the below section highlights the main points for each: 1. Josà © De Gregorio: Inflation targeting and financial crises ; Governor of the Central Bank of Chile, Colombia, Bogota, 28 May 2009. Financial stability must be preserved with an adequate regulatory system. Agencies must analyze the strength of institutions, while central banks must evaluate the systems overall stability. Regulators and central banks must closely cooperate and work in the effort of maintaining the integrity of the financial system. Regulating specific institutions is not enough, because interconnections exist that could derive in a systemic crisis. The current crisis proves that the regulatory scope must encompass every agent with a systemic importance. So a proper macro-prudential regulatory system is needed. A first set of instruments has to do with capital adequacy. However, this is not enough, and it is no trivial to judge the soundness of the financial system by its capital and leverage levels. Higher levels of capital will certainly have to be required in the future, particularly as banks gradually assume higher levels of risk. Central banks must strengthen and perfect the models with which they carry out their stress tests. They should take into account the interconnections within the financial system and detect vulnerabilities opportunely. It is important to allow securitization, but establishing incentives for both credit screening and monitoring of payments to remain at the banks and that the process of transferring credit risk away from individual institutions balance sheets does not escape the authoritys eye. The current crisis should not become a hindrance to financial development, but a sign of alert in favor of prudence and rigor when assessing the innovations. 2. George Provopoulos: Reflections on the economic and financial crisis; Athens, 18 May 2009. The key priority among policy makers is to bring back economic growth and help bring about prosperity for everyone. The policy response should also be of a dual nature, one part of which involves a short-run response and the second part of which involves a medium-term response. In the short run, whatever is feasible should be done to support economic recovery. In the medium term, is the preparation to pursue a credible exit strategy from the extraordinary policy interventions while developing an effective framework for financial supervision. The short-term, response will help pave the way to recovery. The second, medium-term, response will help ensure that organizations do not experience a similar crisis in the future. 3. Rakesh Mohan: Global financial crisis causes, impact, policy responses and lessons , London, 23 April 2009. The ongoing global financial crisis can be largely attributed to extended periods of excessively loose monetary policy over the period 2002-04. Very low interest rates during this period encouraged an aggressive search for yield and a substantial compression of risk-premia globally. Abundant liquidity in the advanced economies generated by the loose monetary policy found its way in the form of large capital flows to the emerging market economies. All these factors boosted asset and commodity prices, including oil, across the spectrum providing a boost to consumption and investment. The ongoing deleveraging in the advanced economies and the plunging consumer and business confidence has led to recession in the major advanced economies. 4. Jean-Claude Trichet: The global dimension of the crisis: Japan, Tokyo, 18 April 2009. The current crisis has shown that there is a need for more rigorous regulation of the global financial system. Such regulation needs to meet two fundamental requirements. First, it needs to prevent the excessive risk taking that we have been observing in financial markets over the past years and that led to the creation of asset price bubbles and large imbalances in the global economy. At the same time, it needs to create an environment that is conducive to sustainable growth for economies in the long run. The international community has swiftly reacted to the need for greater coordination of policies and regulation of international financial markets National governments have in addition undertaken an unprecedented concerted fiscal expansion to stimulate demand and foster confidence in economies. Governments have also decided on a broad set of measures to support the banking sector and strengthen the stability of the international financial system. These measures include the injection of new capital, guarantees on bank debt and deposits, as well as large-scale schemes that aim at coping with the issue of impaired assets. 5. Ben S Bernanke: Four questions about the financial crisis Atlanta, Georgia, 14 April 2009. The current crisis has been one of the most difficult financial and economic episodes in modern history. There are tentative signs that the sharp decline in economic activity may be slowing. A leveling out of economic activity is the first step toward recovery. 6. Philipp Hildebrand: Developments in the current financial crisis, Berne, 2 April 2009. The financial market turbulence, which began some 20 months ago, has grown into the largest and most complex crisis since the 1930s. The real world economy is now feeling the full force of this financial crisis; its a very difficult period, although there are a few signs that the global economy could possibly be close to the cyclical trough. However, the route to recovery is unlikely to be straightforward, and the downside risks to growth remain considerable. Lucas Papademos: How to deal with the global financial crisis and promote the economys recovery and sustained growth, Brussels, 26 March 2009. The severity and duration of the current economic and financial crisis is partly a consequence of the reduced confidence in the prospects of the economy and the soundness of the financial system. The recovery of the economy also hinges on the restoration of consumer and business confidence that can contribute to the revival of spending and investment, and the return to normality in financial markets and the banking system. The rebuilding of trust will depend on ability to appropriately combine the policy actions needed to address the immediate challenges with the necessary reforms for establishing an economic, financial and institutional environment that is conducive to sustainable long-term growth. 8. Jean-Claude Trichet: What lessons can be learned from the economic and financial crisis?; Paris, 17 March 2009. The global economy was hit in mid-September 2008 by an unprecedented abrupt loss of confidence. It was perhaps the first time in economic history that a single negative event was able, within a few days, to have a simultaneous and negative effect on all private economic agents in every economy, industrialized and emerging. Public authorities, executive branches, and central banks must do all they can to regain, preserve and foster confidence among households and corporations to pave the way for sustainable prosperity. This calls for actions to be measured. Confidence of households and corporations today depends crucially on their trust in the capacity of authorities to preserve the soundness and sustainability of fiscal positions in the years to come. Confidence of economic agents today depends equally on their trust in the determination of central banks to preserve price stability. It is essential to achieve this balance between the measured audacity of todays non-conventional decisions and the credible determination to ensure a path that is sustainable in the medium and long term. Exaggerated swings without perspective would delay the return of sustainable prosperity, because they would undermine confidence, which is the most precious ingredient in the present circumstances. 9. Lucas Papademos: Tackling the financial crisis policies for stability and recovery ; London, 11 February 2009. To presume better regulation, more effective supervision and longer-term stability-oriented macroeconomic policy would suffice to eliminate the cyclical features of the financial system and the build-up of financial imbalances in the future. Market participants have an important role to play and self-interest in addressing some of the revealed weakness in the financial system, and in strengthening market discipline. What policy-makers can do, and should aim at, is to ensure that the macroeconomic policies and the regulatory framework designated do not exacerbate cyclical fluctuations, and that, when financial imbalances and market excesses emerge and are identified, the appropriate tools to address them in an effective manner should be used. 10. Hervà © Hannoun: Long-term sustainability versus short-term stimulus: is there a trade-off? , Kuala Lumpur, 7 February 2009. There are two stylised types of policy response to the global crisis: stabilization and stimulation. A measured stabilisation policy accepts the fact that the adjustment is inescapable while it endeavours to mitigate the pain and promote an orderly adjustment. In contrast, stimulation policies, pushed to the extreme, seek a stimulus that would be large enough to, so to speak, eliminate the adjustment period a goal that would obviously be illusory. It is a legitimate goal of policy to mitigate the macroeconomic recession and slow the spin of the negative feedback loop. However, expansionary policies that fail to take the crisis of confidence sufficiently into account run the risk of becoming ineffective beyond the very short term. To restore confidence in a sustainable way, policy actions should be embedded in a credible longer-term perspective and pay due attention to their effects on the expectations of economic agents. The crucial actions are to develop consistent medium-term policy frameworks, plan sufficiently in advance for how current policies will be unwound when normal conditions return, and develop a consistent approach to macro financial stability. Together, these measures would ensure that short-term policy actions do not sow the seeds of tomorrows boom and bust episodes. 11. Philipp Hildebrand: The global financial crisis analysis and outlook, Zurich, 5 February 2009. Only a careful investigation of the responsibilities is likely to point to ways in which financial system, and ultimately economy, can be made more resilient once this crisis has been overcome. Financial markets react to incentives, and these incentives were misplaced in the past. It is in power to start lobbying for clearly defined and risk-limiting conditions. 12. Jean-Claude Trichet: Remarks on the financial turmoil Brussels, 8 December 2008. Measures to address the challenges posed by the current conditions in the financial markets. In addition avoiding the reoccurrence of a similar crisis in the future. However, measures taken by public authorities can only go so far. The banking sector needs to also do its part by committing to reactivating the interbank market, resuming their intermediation role and implementing the necessary reforms aimed at strengthening the resilience of the financial system in the long term. 13. Jose Manuel Gonzalez-Paramo: The financial market crisis, uncertainty and policy responses , Madrid, 21 November 2008. Uncertainty translated into a severe under-appreciation of the risks associated with certain classes of financial instruments and institutions. More recently, with the intensification and broadening of the market turmoil, uncertainty has further increased and developed into a pervasive phenomenon affecting a wide range of markets, assets and financial sectors. Systemic uncertainty may potentially undermine the foundations of our financial systems, which are in turn essential for the orderly functioning of economies. 14. Christian Noyer: Some thoughts on the financial crisis Tokyo, 18 November 2008. Economic and financial forces are at play and recent events are the consequences of such forces. Policy makers, have a very critical role to play to try and ensure that such qualitative remain aligned with facts and reality. 15. Lars Nyberg: Challenges following the current crisis Santiago, 6 November 2008. The crisis will most likely redraw the global financial landscape in various ways. And even if the recent measures taken by governments and central banks have improved market conditions somewhat, it is far from certain that the crisis will be over any time soon. What will come out at the other end of the crisis is also still much too early to tell. The financial industry and the responsible authorities have to make certain that the costs of the prevailing financial turbulence are kept as low as possible. 16. Christian Noyer: A review of the financial crisis Paris, 7 October 2008 (updated 15 October 2008). To address all the questions and challenges that this crisis has raised: these include the role of credit ratings agencies, the management of risk, market infrastructures, the scope of financial regulation and the question of remuneration.. Pay structures should not encourage short-termism or, as was the case, excessive risk taking. 17. Lorenzo Bini Smaghi: Some thoughts on the international financial crisis , Milan, 20 October 2008. There are some time-honoured lines of action which relate to the prevention of crises, namely better regulation and supervision, in particular at the international level, and more effective crisis resolution mechanisms. One new point for consideration that has emerged from this crisis relates equally to ethical, social and political aspects. This should be solved both by governments, so that decision-making mechanisms can be adopted which allow the abovementioned problems to be overcome in a crisis, and also by the financial sector itself, which must clearly draw some lessons from recent events. In a market economy, maximizing profits and shareholders interests are a priority for management. They permit the efficient allocation of resources within the economy. However, when a sector such as the financial sector is of systemic importance to the functioning of the economy and is prone to instability, the objective function must be broader. It is a problem of rules, incentives and individual responsibility.

Human Trafficking: Modern-Day Slavery Essays -- Sex Trafficking, 2015

Slavery is a modern, pervasive problem. Human trafficking has been found in every state in America (humantrafficking.org). It seems that most Americans likely live within a comfortable drive of someone who is being exploited through human trafficking. There is a growing trend in human trafficking toward sexual exploitation (Bennetts, 2011). The Information Age has helped to create new opportunities for sex trafficking to flourish. Information drives many modern experiences. A wealth of information, on seemingly any topic, is at the fingertips of any person with Internet access. Society has grown accustomed to real-time solutions, instant gratification, and anonymity. New technologies tempt the depth of human curiosity, sometimes resulting in opaque consumer markets that bear heavy human costs. One such market is that of sex trafficking. I will demonstrate how this issue is not being treated with the appropriate seriousness, how sex trafficking results in egregious violations of human rights and losses of human autonomy. The Internet plays a key role in sex trafficking, and we, behind our computers and in our communities can play vital roles in stemming the tide of sex trafficking. While the American government’s current response to combat sex trafficking has been more robust of late, it is imperative that results follow from these improved efforts. Sex -trafficking, defined by the U.S. Department of State’s Victims of Trafficking and Violence Protection Act of 2000, is, â€Å"the recruitment, harboring, transportation, provision, or obtaining of a person for the purpose of a commercial sex act† (TVPA, 2000). Many sex trafficking victims are transported and concealed in establishments that offer legal sex acts, like strip clubs, pornography production, escort services, and so on. Traffickers buy and run legitimate businesses, like massage parlors, modeling studios, and adult book stores, in order to conceal and harbor victims with the goal of selling them (humantrafficking.org). Sex trafficking is not hidden behind closed doors, but is disguised as a regular business for anyone who is interested. Sex-trafficking victims are diverse: U.S. citizens, foreign nationals, women, men and children all make sex slaves (U.S. Department of State PITF). Victims are trafficked in three ways: within their countries of origin, from country-to-country, and to destinat... ... "Trafficking in Persons: U.S. Policy and Issues for Congress." Trends in Organized Crime 14.2-3 (2011): 267-71. Trafficking in Persons: U.S. Policy and Issues for Congress. Congressional Research Service, 19 Feb. 2013. Web. 12 Oct. 2014. . Stutler, Ana. "The Connections Between Pornography and Sex Trafficking." Covenant Eyes. 7 Sept. 2011. Web. 10 Nov. 2014. pornography-and-sex-trafficking/>. U.S. Department of State. The President’s Interagency Task Force to Monitor and Combat Trafficking in Persons. Rep. Apr. 2014. Web. Oct. 2014. . United States. U.S. National Archives & Records Administration. National Archives and Records Administration. National Archives and Records Administration, n.d. Web. 25 Oct. 2014. . "Victims of Trafficking and Violence Protection Act of 2000." U.S. Department of State. U.S. Department of State, 28 Oct. 2000. Web. 14 Oct. 2014. .

Autonomy, Education, and Societal Legitimacy Essay -- Educational Pape

Autonomy, Education, and Societal Legitimacy I argue that autonomy should be interpreted as an educational concept, dependent on many educative institutions, including but not limited to government. This interpretation will improve the understanding of autonomy in relation to questions about institutional and societal legitimate authority. I aim to make plausible three connected ideas. (1) Respecting individual autonomy, properly understood, is consistent with an interest in institutions in social and political philosophy. Such interest, however, does require a broadening of questions about institutional and societal legitimacy. (2) Individual autonomy can and should be re-conceived as a multi-institutional educational notion. We must appreciate the manifold institutional process. There are diverse questions about legitimacy as institutional and societal authority that generate normative demands binding on the individual. (3) There is some uncertainty about which institutions do or should educate for autonomy. The shift to an e ducational, multi-institutional model of autonomy renders more questionable and probably de-emphasizes the role of blame and punishment as paradigmatically institutionalized expressions of respect for autonomy in educating for autonomy. Nonetheless, such an educational model does not eliminate concern about autonomy, blame and punishment. Rather, it broadens questions about the legitimacy of the normative function of various institutions, and of society as a whole. I This paper is intended to make it plausible to believe three connected propositions. The paper is about the variety of social institutions that educate persons (for good or ill) about normative issues. It is about some connections betw... ...cially p. 57. (12) Interestingly, Joel Feinberg is aware of the possible future decay of the nation-state, and he concedes that this might require some adjustments in our thinking about the analogy between autonomous individuals and autonomous states. Feinberg, however, does not seem to favor or even entertain the idea that if there were fundamental institutional changes, we might do well to modify our reliance on analogies between individual persons and states so far as the theory of autonomy is concerned. See Harm to Self, Oxford University Press, Oxford, 1986, pp. 50-51. Feinberg is here commenting on autonomy as the "sovereign authority to govern oneself". His position seems puzzling for many reasons, especially in its unsupported assertion that even if a sense of world community grows, we ought to continue to model individual autonomy on the nation-state.

Essay --

Madeline Hearons Introduction to Philosophy Dr. Butterfield 9 March 2014 The Problem of Evil â€Å"The problem of evil† has been a controversial topic for not only philosophers, but also people of different faiths all over the world. The problem of evil poses the questions that if there is a higher power, a perfect God, how can that higher power allow such evils to occur in this world? How could this perfect God create such evils in the world? How could he allow such suffering? As these questions have been asked, many philosophers have different thoughts and opinions on what kind of higher power really exists, and how evil can come from such a perfect and loving God. The example I have chosen poses the question of whether or not a perfect higher power really does exist. If a perfect God has created this world, why would he include evil? After researching different philosophers and their different views on the problem of evil, Gottfried Leibniz stuck out to me. I found comparing our views very interesting. The problem of evil proves contradiction in religious philosophy, that a perfect God may or may not exist (Pecornio, 1). If a perfect God exists, why would he put evil into our world and promote suffering? Some philosophers have argued that this suffering is consequence for our own sins. If you willingly choose a path of evil, then evil will present itself onto you. An example of this would be that if you know smoking is bad and can cause lung cancer, and you still choose to smoke, you â€Å"deserve† the evil consequence of getting lung cancer (Beebe, 1). The problem of evil pinpoints two types of evil: moral evil and natural evil. Moral evil is a type of evil that is caused by mankind itself, such as murder, abuse, and sexual... ...t mean that a God does not exist, but one that all knows, all-powerful, and all present does not exist. The Logical Problem of Evil explains this, going against Leibniz and his beliefs, but supports my example. I believe that Leibniz argument in persuasive and have some very valid points. In conclusion to the problem of evil, I think that your beliefs will lead you to follow a certain view on this topic. I also believe that you do not have to choose one certain side, that this topic is not black and white. The problem of evil can really make you think about the troubles of the world, and what the reason and cause for suffering is. Who do you believe is responsible? Is it a higher power, or your own actions that make these things happen? Religious views may lead you to believe one idea, but your logical sense may lead you to believe something completely different.

How Will Climate Change Impact Caribbean Business Environmental Sciences Essay

The part is faced with many challenges, chances, menaces and hazards as a consequence of clime alteration ( United Nations Environment Programme, 2008 ) . Developing states must therefore address the impact of clime alteration of which they are highly vulnerable though they contribute less than 1 % of entire green house gas emanations compared to the surplus of 50 % contributed by the universe ‘s industrial powers ( Trotz, n.d. ) . However, it is imperative that they become cognizant of the impact of clime alteration on Caribbean concern, trade and the environment, and supply solutions as to the manner frontward. The Caribbean signifiers portion of the Small Island Developing States that are considered vulnerable to the socio-economic and environmental features that creates sustainable development challenges ( United Nation Environment Programme, 2008 ) . These challenges are critical in understanding the kineticss in the manner they function within their assorted economic systems and the ensuing consequence of clime alteration. These include the dependance of the productive sectors on their narrow handiness of natural resources such as agribusiness, fishing and forestry which can finally take to limited economic variegation possibilities ( United Nations Environment Programme, 2008 ) . This in inself can make economic systems with limited potency to exhibit a competitory advantage on an international degree. Other challenges include the high dependance on imports and the islands susceptibleness to extreme conditions conditions. Climate alteration does bring forth both positive and negative effects. Island states must therefore happen ways to capitalise on the chances while cut downing hazards. Conducting concern locally, regionally and internationally is of import for economic growing and development and as such, climate alteration can impact concern operations significantly. For illustration, the Caribbean is extremely dependent on touristry as one of its cardinal subscribers to the gross domestic merchandise ( Reid, 2010 ) . Coral reefs are an intregal attractive force to tourers sing the Caribbean particularly on the islands of Jamaica and St. Lucia, among others ( Reid, 2010 ) . However, coral bleaching due to lifting temperature consequences in the decease of corals which will finally take away from a merchandise of value within the sector ( Reid, 2010 ) . Similarly, agribusiness is of import for many cariibean islands non merely for export, but as a beginning of nutrient for many communities. Hurrican es and other natural catastrophes can hold damaging effects on islands such as Grenada and Dominica which export Myristica fragranss and bananas ( Reid, 2010 ) . Harmonizing to the United Nations Framework Convention on Climate Change ( n.d. ) , a shortening of the turning season of sugar cane in Guyana due to climate alteration will cut down outputs by 29.8 % and cut down productiveness in St. Vincent by 20 % . Other negative effects include emphasis on concerns and authoritiess due to the insurgency of diseases and pestilences and a rise in regulative force per unit areas ( United Nations Environment Programme, 2008 ) . Climate alteration can supply important benefits for the concern sector and unfastened concerns throughout the Caribbean to the potency of staying competitory globally while increasing the possibility of cut downing long-term costs. This decrease in costs can be achieved through the ability of concerns to follow energy effiecient processes ( ECLAC, 2010 ) . Additionally, with consumers going more environmentally knowing and friendly, the acceptance of greener patterns will better the manner in which stakeholders view take parting concerns giving them an border over non-practicing concerns ( United Nations Environment Programme, 2008 ) . Businesss may besides profit from revenue enhancement interruptions and/or fiscal inducements such as the deforestation partnership where Norway is paying Guyana to maintain its nursery gas emmission down ( Edwards, 2010 ) . In add-on to concern, clime alteration will impact trade within the part particularly due to function that touristry and agribusiness drama in the growing and development of the economic systems. Additions in temperature will ensue in lower output and as such, export possibilities will decrease ( Reid, 2010 ) . Additionally, diminution in fish stocks can hold important effects. For illustration, decrease in the Yellow Fin Tuna, which is chiefly used for export will adversely impact economic output therefore negatively impacting trade. Last, clime alteration willl consequence in developing states holding to run into specific criterions as it relates to labelling and production procedures which may be a hinderance due to the deficiency of technological capablenesss, accomplishments or expertness. However, this can make an chance for Caribbean concerns to use the export markets by going more competitory due to the acceptance of greener patterns. For illustration, Grenada benefitted from the export of organic cocoa which is certified under the USDA-NOP and EEC2092/91 ( Grenada Chocolate Company, n.d. ) . Similarly, Jamaica is able to profit from the export of the Jamaican Moutain Coffee to international markets ( Coffee Industries Ltd, n.d. ) . The effects of clime alteration on the environment are of great concern as animate being and works biodiversity, agribusiness and human population ( among others ) are affected. There is besides the possibility of H2O deficits and taint, and the remotion of Rhizophora mangles and coral reefs all ensuing in the human population being at hazard. Harmonizing to United Nations Environmental Programme ( 2008 ) , about 70 % of the islands population lives along the seashore doing them susceptible to decease from tsunamis, hurricanes and storm rushs. These natural jeopardies along with internal anthropogenetic jeopardies such as deforestation can badly cut down the resiliency of cardinal ecosystems over a period of clip ( Reid, 2010 ) . Haiti experienced four lay waste toing hurricane in 2008, go forthing the island with over US $ 5 million in amendss which accounted for 5 % of its GDP ( Caribbean Policy Development Center, 2008 ) . Climate alteration besides increases the potency for the i nvasion of non-native, invasive species therefore interrupting the balance within ecosystems. In turn toing the issues related to climate alteration, it is necessary that the Caribbean take a conjunct action. As such, it is critical that version be made to the manner companies conduct their concern, trade and interact with the environment. Adaptation involves sentisizing the population of the effects of climare alteration and shifting resources in order to extenuate its effects ( United Nations Environmental Programme, 2008 ) . For illustration, , in Playa Rosario in Havana, communities have been reallocated 5km inland to avoid the impact from coastal erodings ( United Nations Environmental Programme, 2008 ) . Additionally, the funding of undertakings geared towards version encourages more concern to take part. One such programme was executed in the 1990 ‘s where the Caribbean Adaptation to Climate Change ( CPACC ) was granted US $ 5.6 million to finance four regional and five pilot undertakings through the World Bank, Organization of American States ( OAS ) and CARICOM ( United Nations Environmental Programme, 2008 ) . Other actions include building edifices with proper chilling systems, promote the preservation of natural resources including H2O installations, and inducements for companies in conformity with regulative patterns regulating clime alteration ( United Nations Environmental Programme, 2008 ) . The impact of clime alteration on concern, trade and the environment is serious. Although climate alteration may supply some positives particularly for establishments with the capacity to accommodate, the magnitude of the negatives can non be overstated. There is an pressing demand for action to be taken by persons, communities, concerns and authoritiess within the part. It is imperative that we are able to make a sustainable hereafter for our state ‘s kids and as such, the part need non merely adapt to climate alteration but besides do all possible to extenuate its effects.

Where Women Lead The Show †Renoir’s Acrobats At The Cirque Fernando, 1879

Pierre-Auguste Renoir’s Acrobats At The Cirque Fernando, 1879 shows two young girls, most probably between twelve and fifteen years of age, taking turns to perform their act at the circus. One of the young girls is carrying balls around her chest while the other is communicating with the audience as part of her act. The girl who is communicating with the audience has a questioning, innocent expression on her face. The one who is carrying balls is possibly waiting for her turn to perform. She, too, is innocent and fresh in appearance as the other. However, she seems to be dwelling on her new experiences of semi-adulthood. Perhaps she is musing on the boys in her life – the young men who admire her very much. The audience depicted in the painting, behind the bodies of the two young girls, appears to consist of men alone after all. The men appear like judges, in their black coats, giving them the semblance of uniformed officers. Only one of the men has his face visible through the painting, and the face is hard enough for the girls to display their innocence in all its glory with the assumption that the counterpart of a harsh and doubtful attitude must be softness. Although the girl carrying the balls has her back turned toward the hard faced man, she knows that she too would have to perform. The expressions of the male and the females in Renoir’s Acrobats At The Cirque Fernando, 1879 are rather similar to the expressions of the two sexes depicted in many of the artist’s works of the time. The woman is seen as the adored and innocent object that performs, even though the man is hard faced, perhaps weary of the work that he performs to fend for his family day after day. The woman is the amuser, the muse, and the object of entertainment to fend for. After all, she is beautiful. The only beautiful facet of the man is that he is strong – in Renoir’s paintings, at least. What is more, the man is always staring at the woman in Renoir’s works. He fondles her whenever he has the chance. The woman remains faithful to him – this is depicted through the innocence on her face. If she becomes unfaithful she knows that the hard faced man would discontinue supporting her. The French word for ‘thank you’ is merci, which, if used in English, perfectly describes the attitude of the woman in late nineteenth century Paris. Although Paris was one of the first places in the west where women were generally believed to have been liberated, Renoir’s painting reveals that the women were definitely not liberated through promiscuity or debauchery. Rather, the urban Parisian women in the late nineteenth century seem to have been given permission by their men to be out and about, entertaining them, while remaining faithful to their innocence as well as their marital vows. As the facial expression of the young girl carrying the balls in Renoir’s Acrobats At The Cirque Fernando, 1879 reveals – women understood their position in Parisian society even as they were aware that men and women are equally dependent on each other. Perhaps they also knew that men could turn violent against the woman – the epitome of mercy – and that their partners may very well become harsh and cruel if they were not obeyed according to divine laws that are believed to demand that they become subservient unto men. Although these beliefs continue to be nurtured in many parts of the world, Renoir’s Acrobats At The Cirque Fernando, 1879 is a reminder that divine laws may have been misconstrued as well!