The problem solution of rmg Essay Example for Free

The problem solution of rmg Essay Submitted to Institute of Governance Studies BRAC University Dhaka In Partial Fulfillment of the Requirement for the Degree of Master of Arts in Governance and Development (MAGD) Institute of Governance Studies BRAC University, Dhaka, Bangladesh November 2010 Declaration I hereby declare that I am the sole author of this thesis. I authorize the Institute of Governance Studies (IGS) and BRAC University to lend this thesis to other Institutions or individuals for the purpose of scholarly research only. I further authorize the IGS and BRAC University to reproduce this thesis by photocopying or by other means, in total or in part, at the request of other institutions for the purpose of scholarly research. Urmi Tamanna ID-07272026 MAGD Batch-2 IGS, BRAC University i Acknowledgement All praise and gratitude to Allah (The alone we worship, the alone we ask for Help). This is matter of challenge and enjoyment to do a research work in a supportive academic environment like IGS and BRAC University. Firstly, I would like to express my sincere respect to my supervisor Professor Iftekhar Ghani Chowdhury for his valuable guidance and unparallel support which makes me confident to work on this challenging issue. I had full support from my family; my husband, Insha and Taasin, Father, Mother, Sister and Brother. I also got tremendous support from Raihan and my other batch mates (BCS 21st and MAGD). I would thank Netherlands Government and BRAC University to study in the MAGD programme. Finally I show my sincere obligation and respect to the people of Bangladesh and the Ministry of Finance on behalf of Government of Bangladesh to allow me to study in this beautiful place and academic zone. ii Table of Contents Page No. Declaration I Acknowledgement II Table of Contents III-IV Abbreviation V Abstract VI Chapter One- Introduction 1-16 1. 1 Historical Development of Labor Law in Bangladesh 1 1. 2 Present Situation 2 1. 3 Worker’s Rights Situation 3 1. 4 Lack of Union’s Legal Advisory System 3 1. 5 Professional Legal Support is Costly 3 1. 6 New Labor Code 4 1. 7 The Functions of Labor Union 4 1. 8 Labor Union in Bangladesh 5 1. 9 Industrial Relations Act, 2004 6 1. 10 Labor Union Activities in Bangladesh 7 1. 11 Trade Union Activities in RMG Sector 8 1. 12 Labor Union in EPZ Units 10 1. 13 The Situation during Caretaker Government 10 1. 14 ILO Directives 11 1. 15 Rationale of the Study 13 1. 16 Background of the Research 13 1. 17 Objective of this Research Work 14 1. 17 (a) Research Question 14 1. 17 (b) Hypothesis 14 1. 18 Methodology 14 1. 19 Sources of Data 14 1. 20 Analytical Tools Used 15 1. 21 Sample Size and Structure 15 1. 22 Limitations 16 1. 23 Structure of the Study 16 iii Chapter Two- Labor Outburst in RMG Sector of Bangladesh 17-21 2. 1Various incidence of labor unrest 17 2. 2 Small Beginnings of a Mass Revolt 17 2. 3 Containing Riots in the RMG Sector 2. 4 Conclusion 19 20 Chapter Three – Literature Review 22-28 3. 2 Grievance of labor was the centre of the labor unrest 22 3. 3 Agreements with Garment Workers not honored 24 3. 4 Non implementation of minimum wage 25 3. 5 Lack of tolerance of the labor was reason behind that unrest 25 3. 6 Other interest Parties 26 3. 7 Labor legislation and labor unrest 26 3. 8 Unions and workers 27 3. 9 Issue which is not addressed 27 3. 10 Questionnaire 27 3. 11 Conclusion 28 Chapter Four Stakeholders’ perception regarding labor union 29-39 4. 2 Issues that are Addressed in Questionnaire 29 4. 3 Overall Response 29 4. 6 Response of respondents from unaffected garment industries 33 4. 8 Response of respondents from affected garment industries Where Labor was Occurred 4. 9 Conclusion Chapter Five- Findings and Conclusion 36 39 40-43 5. 2 Lesson Learned 43 5. 3 Further Research 43 Reference 44 Appendix One –Questionnaire 45 Appendix Two-– Brief scenario of RMG sector of Bangladesh 46-50 iv ABBREVIATIONS BEA Bangladesh Economic Association BGMEA Bangladesh Garment Manufacturers and Exporters Association BILS Bangladesh Institute of Labor Studies FDI Foreign Direct Investment GDP Gross Domestic Product LU Labour Union MFA Multi-Fibre Arrangement RMG Ready Made Garments EPZ Export Processing Zone v ABSTRACT Readymade Garments (RMG) is the main foreign exchange earning sector of Bangladesh. At the same time this labor intensive sector is very important to address the demands of occupation of a huge population. Reputation of this sector is high which underpins the success of this sector. But in recent times the growth and existence of this sector came under threat when this sector faced severe labor unrest. Due to the labor unrest there has been huge loss of production, and some of the factories were ruined by protesters, several laborers were killed, and lot of labors were injured and arrested. It is said that there were legitimate demand of the laborers which should have been addressed by the owners. But these demands were not addressed which created the grievance of the laborers. In course of time these grievance bolstered the unrest. On the other hand, some laborers were not sincere and honest to their job and responsibilities. These laborers involved themselves in the destruction of their own industries. While most of the researchers addressed the reasons of that unrest, in this research the probable solution of that problem has been addressed by collecting stakeholders’ perceptions through questionnaires. It has been found that to address the grievances and to consider the limitations of the financial capacity of the owners a bridging mechanism, labor union, between laborers and owner is needed. Moreover, it was found that most of the respondents think that labor union can be used as a tool to mitigate the risks of labor unrest in RMG sector of Bangladesh. vi Labor Unrest in Bangladesh RMG Sector: Does Active Labor Union Reduce the Risk of Labor Unrest in RMG Sector? A Dissertation by Urmi Tamanna ID-07272026 MAGD Batch-2 Approved as to Style and Contents By Professor Iftekhar Ghani Chowdhury Supervisor Institute of Governance Studies BRAC University, Dhaka, Bangladesh November 2010 Labor Unrest in Bangladesh RMG Sector: Does active labor union reduce the risk of labor unrest in RMG sector? Chapter-One Introduction Introduction The readymade garments (RMG) sector, the single biggest foreign exchange earner in Bangladesh has come a long way in last two decades. The industry has crossed many hurdles to stay competitive. It has proved many predictions futile and wrong and competes fiercely even after the abolition of quotas under Multi-Fibre Arrangement (MFA) in the North American market and special market entry to European markets. The credit for that achievement goes primarily to the entrepreneurs and the laborers. But the relationship between these two major contributors has come into question and the industry is under severe pressure because of labor unrest. After the labor unrest of 2006 in several RMG units, the sector sustained a loss to the tune of US$60 million, Khan, S. (2007). The fact remains that trade unionism is virtually absent in the garments sector and when responsible labor movement is not given any chance, the consequence is indiscipline and chaos leading to a situation where the mob takes over. So the notion of the absence of labor unionism in the garments in most of the industries as a reason for widespread violence needs more research to reveal the reasons behind and offer possible policy solutions to the crisis. 1. 1 Historical development of Labor Law In Bangladesh In British-India industrialization paved its way during the last part of eighteenth century. Workers condition of work, environment was worst. That time the few labor laws existed in the sub-continent was not enough to protect the rights of the working people. Most of the labour laws we have inherited from British-India and Pakistani period. First labor law came in this subcontinent was Workers Compensation Act, 1923. Workers got their Trade Union rights after a long struggle under Trade Union Act, 1926. At the time of Pakistani period 2 separate laws was there, Trade Union Act ; Industrial Dispute Settlement Act, these 2 laws merge into Industrial Relation Ordinance, 1969. Major labor laws enacted in the year 1965, such as Factories Act, Shops ; Establishment Act, Employment of Labour (SO) Act. Later on, so many amendments made on labor laws. Moreover, separate rules were also enacted for 1 better implementation of the law. Bangladesh government set up a separate Inspection Authority to supervise and monitor the implementation of labor laws. 1. 2 Present situation Our labor laws are presently scattered in different statutes. In other words, labour laws are yet to be codified. The necessity of such codification had been felt by many since long. Besides, the existing labor laws suffer from some inherent flaws and require to be updated to meet the present demand of proper dispensation of justice. Actually we inherited the laws and the legal system of our country from British-India. The British enacted laws to primarily suit their colonial purpose. Now ours is liberated country and its outlook and demand have changed drastically. Therefore either the existing laws should be adequately amended or new laws be enacted, suiting the present demand of the society. Out of 44 statutes of our labor laws 2 are from the nineteenth century and another 13 from the between the beginning of twentieth century and the partition of the sub-continent in 1947. Another 23 statutes were enacted during the Pakistan period (1947-1971), the reset i. e. , six statutes have been enacted since liberation. These scattered laws need to be unified. Keeping this in view in 1992 a National Labour Law Commission was formed. The Commission opted for recommending the enactment of a Labour Code. The successions for a Labour Code, however, seem to have been shelved, at least for the time being. Nevertheless, occasional attempts have been undertaken to revive interest in the proposed Labour Code. The National Trade Union Leaders of the Labour Law Review Committee was reconstituted in August 1998. Earlier the International Labour Organization-ILO office in Bangladesh also submitted its comments on the Draft Labour Code prepared by the Commission. 7-member review committee has been formed by the government to re-asses the proposed Draft Labour Code. However, after the emergence of the new state of Bangladesh, no such initiative has ever been taken by any of the successive governments and the issue has always been given back seat by them. Surprisingly, the new recommended Labour Code, 1994 of the National Labour Law Commission is still awaiting governments approval and subsequent enactment. Without a complete Labour Code, to end the violation of workers rights will remain a far cry. 2 1. 3 Workers rights situation Workers rights are highly violated in the country. Mass people are not aware of the rights of working people. Even the policy makers are not that much concerned. Civil society shows negligence towards the rights of the workers. The Constitution of the country guarantees rights to organize but unfortunately there are so many restrictions to form and join Trade Union in several types of industries and areas i. e. Govt. Employees, Export Processing Zones (EPZ), Rural Electrification Board, and all types of security and confidential staffs, Security Printing Press, employees of education/research institutions, hospitals and clinics, NGOs, Army, Police etc. To meet the end of these violation and deprivation awareness should be raised among the workers themselves. Labor Union activists should be given more knowledge and power to build their capacity in collective bargaining and motivational activity. 1. 4 Lack of unions legal advisory system Due to multiplicity, in house union system, political tailing and lack of one single National Trade Centre, trade unions becoming weak day by day. Membership dues collection for union and rate of dues are very small size. Due to financial inability members are not getting so many services from the union. One of important service they required is to get legal advice at the time of facing grievance handling, preparing court cases, protection of their rights etc. At present union has no such legal advisory system. Bangladesh Institute of Labour Studies (BILS) can provide such services by establishing a small legal cell. 1. 5 Professional legal support is costly Legal advice and legal support is always a costly service not only in Bangladesh but almost anywhere in the world. Workers income rate are very poor, their social security scheme are also weak. Working class are always facing serious problem when they get some problem on their job. Workers jobs are always on risk. The employers have so much power to terminate 3 the job of workers. To face the legal court cases professional lawyers services they need but their services are very costly. Workers have no ability to pay for that. 1. 6 New Labor Code The country’s constitution guaranteed all the fundamental rights of the citizen and every body are equal in the eye of law, irrespective of color, sex, class, profession and religion. Bangladesh is a member of ILO since 1972 and obtained membership of the UN in 1974. Though it has ratified 7 out of 8 core ILO Conventions the employers are use to ignoring the law. Most of the ratified ILO conventions are not fully implemented. The present labour law of the country should be updated; a complete labour code should be passed. A step was taken in this regard in 1994 and a labor code was proposed. Trade Union federations of the country made their recommendations and suggestions to make the code a complete document for protecting workers rights, but the government is still to pass the code. [BILS 2005] 1. 7 The functions of Labor Union A trade union or labor union is an organization of workers who band together to achieve common goals in key areas such as wages, hours, and working conditions, forming a cartel of labor. The trade union, through its leadership, bargains with the employer on behalf of union members (rank and file members) and negotiates labor contracts with employers. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. These organizations may comprise individual workers, professionals, past workers, or the unemployed. The most common, but by no means only, purpose of these organizations is maintaining or improving the conditions of their employment Over the last three hundred years, many trade unions have developed into a number of forms, influenced by differing political and economic regimes. The immediate objectives and activities of trade unions vary and include: 4 †¢ Provision of benefits to members: Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership. †¢ Collective bargaining: Where trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions. †¢ Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals. †¢ Political activity: Trade unions may promote legislation favorable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office. (wikipedia) 1. 8 Labor Union in Bangladesh The Industrial Relations Ordinance, 1969 [Ordinance XXIII of 1969] [13th November, 1969] This ordinance is about formation of trade unions, the regulation of relations between employers and workmen and the avoidance and settlement of any differences or disputes arising between them or matters connected therewith. Certain related sections are depicted below. Sec 2(v): â€Å" Collective bargaining agent † in relation to an establishment or industry, means the trade union of workmen which, under section 22, is the agent of the workmen in the establishment or, as the case may be, industry, in the matter of collective bargaining; Sec 2(xiii): â€Å" Industrial Dispute† means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non employment or the terms of employment or the conditions of work of any person; 5 Sec 2(xxiv): â€Å"Settlement† means a settlement arrived at in the course of conciliation proceeding, and includes an agreement between an employer and his workmen arrived at otherwise than in the course of any conciliation proceeding, where such agreement is in writing, has been signed by the parties thereto in such manner as may be prescribed and a copy thereto in such manner as may be prescribed and a copy thereof has been sent to the Government, the Conciliator and such other person as may be prescribed; Sec 2(xxvi): â€Å"Trade Union† means any combination of workmen or employers formed primarily for the purpose of regulating the relations between workmen and employers, or for imposing restrictive conditions on the conduct or any trade or business and includes a federation of two or more trade unions; Sec 3: Trade unions and freedom of association. Subject to the provisions contained in this Ordinancea) Workers, without distinction whatsoever, shall have the right to establish and, subject only to the Rules of the organization concerned, to join associations of their own choosing without previous authorization; b) Employers, without distinct whatsoever, shall have the right to establish and, subject only to the Rules of the organization concerned, to join associations of their own choosing without previous authorization; c) Trade unions and employers’ associations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organize their administration and activities and to formulate their programmes; d) Workers’ and employers’ organizations shall have the right to establish and join federations and confederations and any such organization, federation or confederation shall have the right to affiliate with international organizations and confederations of workers’ and employers’ organization; [Khan, 2006 p. p155-162] 1. 9 Industrial Relations Act, 2004 [Act no. 23 of 2004] [4th September, 2004] This Act made provisions for recognizing the right of the workers to form association, regulation of relations and settlement of differences or disputes arising between employers 6 and workers in Export Processing Zones and for matters connected therewith. Certain related sections are depicted below. Sec 5: Workers representation and welfare committee. – (1) After commencement of this Act, the Executive Chairman or any officer authorized by him in that behalf, shall require the employer and the workers in an industrial unit in a zone to constitute, in prescribed manner, a Workers Representation and Welfare Committee, hereinafter referred to as the committee. Sec 11: Duration and cessation of committee. – (1) A committee constituted in a Zone shall be in existence till October 31, 2006 Sec 13: Formation of Workers Association. (1) With expiry of October 31, 2006 and beginning of November 1, 2006, the workers in an industrial unit situated within the territorial limits of a Zone shall have the right to form association to engage in industrial relations subject to the provisions made by or under this Act. [Khan, 2006 p. p497-506] 1. 10 Labor union activities in Bangladesh The trade unions are very strong in Bangladesh, although only 3. 5 percent of the workforce is unionized, but most of the unions are limited to the public sector or state-controlled enterprises. According to the International Confederation of Free Trade Unions (ICFTU), there are a total of 23 national trade union centers in Bangladesh and approximately 5,450 trade unions. The largest of these are the Bangladesh Jatio Sramik League (BJSL); the Bangladesh Jatiyatabadi Sramik Dal (BJSD); the Jatiya Sramik Party (JSP); the Bangladesh Free Trade Union Congress (BFTUC); and the Jatio Sramik League (JSL). These bodies are organized together in the ICFTU Bangladesh Council. About 1. 8 million of the countrys workers belong to unions, out of a total workforce of approximately 58 million. The unions tend to have strong links to major political parties or are controlled by political figures, and they often lead political action and strikes in the country. Strikes are extremely common in Bangladesh and can paralyze business activities for weeks. The private sector is less unionized and trade unions are practically banned from the Export Processing Zones (EPZ) until 2008, as the EPZ is exempted from certain labor laws. In case of industrial dispute the problems are supposed to be solved through the Labor Tribunal. 7 Unlike many Middle Eastern countries, women in Bangladesh enjoy considerable freedom and are generally involved in education and labor, although the employment and literacy rates among them generally are lower than among men. Recent surges in the garment industry brought new employment opportunities for women, as around 95 percent of people employed in this sector are women. However, in the rural areas the women very often are disadvantaged and among the poorer members of the communities. Currently, more than 37 percent of the labor force is women. However, unionization among women, and hence the protection of their rights, is generally lower than among men. [National Economies Encyclopedia] 1. 11 Trade union activities in RMG sector Trade Union movement in garments sector is very weak. Even it is weaker than the other sectors. There are 8 country wide registered trade union federations. There are 9 federations registered as division based. Another 5 registered federations are combined with Jute, Textile and leather Sector. Apart from these, there are 6 unregistered federations in this sector. There are 3 alliances in the garment sector. These are: 1. Bangladesh Garments Workers Unity Council. 2. Bangladesh Garments Workers and Employees Unity Council. 3. B. N. C. C. (Bangladesh Coordinating Committee, affiliated with (ITGLWF). Main reason of the weakness of trade union movement of garment sector in Bangladesh are: 1. Disunity and division of organizations. 2. Unlimited and long working hours. 3. Absence of Job security. 4. Migration from factory to factory. 5. Absence of weekly holiday and other holidays. 6. Majority of women. 7. State policy. 8. Elite class ownership. 9. Low wage. 10. Unemployment of the country. Though there were 16 unions representing garment workers in January 2006, according to the Democratic Workers Party the level of unionization among workers was very low. Where unions were involved, they act more like extortionists, taking money from management to keep the employees in line while at the same time collecting dues from their members, with whom they had virtually no contact. Most of the unions had direct or indirect links with local and foreign NGOs, and receiving lucrative grants seems to be their main goal. [July 14th, 2006 by Libcom] Most of the trade unions appeared to be tools of one or other of the political parties, strikes being used more as vehicles for pursuing political goals against rival parties than improving 8 workers conditions. The Nation Garment Workers Federation apparently is an exception to this, being a more grass-roots organization, closer to an expression of workers selforganization emerging from their own struggles. It would be too easy and simplistic to apply critiques of modern western business unions to such an organisation. 11 years ago the NGWF was an organisation with 3 workers paid a basic garment workers wage operating out of a shed in a workers slum. Working in conditions more similar for workers in Europe a century or two ago, basic organization for defence and improvement of working conditions is a matter, sometimes, of whether one starves or not. With rapid large-scale proletarianisation of rural workers in many parts of Asia (China, India etc) struggles for unionization are likely to follow. Though organising trade unions were banned by employers in the EPZs, this has changed, as one of the concessions won by the revolt. This is anyway a convenient concession for the owners; a Bill was introduced into the US Senate which, if passed, would ban all imports produced in sweatshops. This is a form of US trade protectionism and corporate image management expressed as concern for workers conditions. The Bill would penalise Bangladesh, Jordan etc and Americas big rival China in, for example, the garment industry, by attempting to undercut their present advantage of cheaper labour costs. the Greater Los Angeles area has surpassed the New York area as the center of the North American garment industry. Home to more than 1,000 manufacturers who employ an estimated 90,000 workers, most of them immigrant, the garment and related industries account for as much as 10 percent of Los Angeles economy, according to Sweatshop Slaves. Nearly one in five local employees today work in the garment industry, making it Los Angeles leading manufacturing sector. (Review of Sweatshop Slaves: Asian Americans in the Garment Industry, Various, 2006. ) As well as the dire conditions of employment, the low level of unionism is one likely reason for the ferocity of the workers response. When it erupts, unmediated class war is generally conducted more brutally on both sides. The Bangladesh state finally realised this when it brought in union officials to mediate and negotiate an end to the rebellion. In the long term, union representation is usually granted by the bosses as a necessary safety valve mechanism and tool of management for the stability of the production process. [Libcom 2006] 9 1. 12 Labor Union in EPZ units Labor union was banned from EPZ units until 2008. For the first time in the country, 69 industrial units in Dhaka and Chittagong export processing zones (EPZ) have introduced workers’ associations on the basis of referendums by workers. At the same time, workers of 22 industrial units have voted for not having any trade union body for themselves for yet another year. The referendums on having workers’ associations were held from January to the middle of this month. There are 124 more â€Å"eligible† industrial units in these two EPZs which will have to hold their referendums by 2010 as per a decision of Bangladesh Export Processing Zones Authority (BEPZA) on the basis of a 2004 act on allowing trade union activities. Although referendums are supposed to be held without any external influence and spontaneously by the workers, BEPZA is putting pressure on the industry owners to hold them as soon as possible. American labour group that has been pushing hard for implementing trade union rights at the EPZs has mounted pressure on the government to have the associations as soon as possible. The factories at the EPZs on an average pay 40 percent more than the factories outside the EPZs. Yet during last year’s unrest, some of the best paying factories in the EPZs came under attack by their own workers. Owners of these factories and law enforcement agencies have said this unrest was prompted by outsiders for their petty gains. Although the referendums are supposed to be held without any external influence and spontaneously by the workers, the Bepza is putting pressure on the industry owners to hold the referendums as soon as possible. The president of Bangladesh Readymade Garments Labour Federation, said, â€Å"Lack of proper monitoring by the government, lack of sincerity of the owners and ignorance of workers of most factories are not complying with the law. †[bangladeshnews. com. bd, 23 March 2008] 1. 13 The situation during caretaker government Garments are Bangladesh’s main export, and have been a major contributor to the country’s economic growth in recent years. The industry has also been important in creating jobs for women. â€Å"International companies that source garments in Bangladesh should insist that the Bangladeshi government end harassment of labor rights activists,† said Adams. â€Å"They should make it clear that labor organizing and activism is part of the deal when operating in the 10 world economic system and that they will not accept it if activists are jailed, intimidated or harassed by the authorities. † Bangladesh has been under a state of emergency since January 11, 2007. The emergency rules have placed serious limits on civil and political rights, and have severely diluted constitutional protections of individual rights. In a letter to the government dated August 1, 2007, Human Rights Watch called for the lifting of the state of emergency. Emergency Power Rules of January 25, 2007 prohibits processions, meetings, assemblies and trade union activities. â€Å"The interim government is abusing its emergency powers to target individuals who are trying to protect workers’ rights in Bangladesh’s most important export industry,† said Brad Adams, Asia director at Human Rights Watch on the backdrop of the arrest of Mehedi Hasan of the Worker Rights Consortium (WRC) on January 24, 2008. He was arrested and detained by National Security Intelligence in Dhaka. His arrest is believed to be directly linked to the labor rights monitoring that he carried out for WRC, a nongovernmental organization that investigates labor practices at apparel factories, largely on behalf of US colleges and universities. Hasan is being held for violating Articles 3 and 4(1) of the Emergency Power Rules of January 25, 2007. In recent days, the authorities have invoked Emergency Power Rules and have filed criminal cases against dozens of trade union members, including leaders of the Bangladesh Independent Garment Workers’ Union Federation. Many other labor rights activists have complained to Human Rights Watch about being threatened and being under constant surveillance. According to police sources, a number of international organizations and their staff members are currently being monitored for allegedly engineering or inciting subversive activities within the garment industry. 1. 14 ILO Directives The International Labour Organisation rapped Bangladesh for its continuing failure to provide full trade union freedoms in the country and for permitting serious violations of ILO Conventions both in law and in practice. In particular, it deplored the obstacles to the establishment of unions in Export Processing Zones and the arrest and harassment of union leaders and activists in the garment sector. 11 And the ILO’s Committee on the Application of Standards singled out Bangladesh for special attention expressing concern over the escalation of industrial violence stressing that freedom of association could only be exercised in a climate that was free from violence, pressure or threats of any kind against trade union leaders and members. The Committee demanded that the Bangladesh Government take measures for the amendment of the Labour Act and the EPZ Workers Associations and Industrial Relations Act so as to bring them into full conformity with the provisions of ILO Convention 87 which Bangladesh has ratified and is duty-bound to observe. The ILO called upon the Bangladesh Government to ensure that all workers were fully guaranteed the protection of the Convention and demanded that the nece

Computer - Aided Instruction Essay Example for Free

Computer Aided Instruction Essay A self-learning technique, usually offline/online, involving interaction of the student with programmed instructional materials. Computer-assisted instruction (CAI) is an interactive instructional technique whereby a computer is used to present the instructional material and monitor the learning that takes place. CAI uses a combination of text, graphics, sound and video in enhancing the learning process. The computer has many purposes in the classroom, and it can be utilized to help a student in all areas of the curriculum. CAI refers to the use of the computer as a tool to facilitate and improve instruction. CAI programs use tutorials, drill and practice, simulation, and problem solving approaches to present topics, and they test the students understanding. Typical CAI provides 1. text or multimedia content 2. multiple-choice questions 3. problems 4. immediate feedback 5. notes on incorrect responses 6. summarizes students performance 7. exercises for practice 8. Worksheets and tests. Types of Computer Assisted Instruction 1. Drill-and-practice Drill and practice provide opportunities or students to repeatedly practice the skills that have previously been presented and that further practice is necessary for mastery. 2. Tutorial Tutorial activity includes both the presentation of information and its extension into different forms of work, including drill and practice, games and simulation. 3. Games Game software often creates a contest to achieve the highest score and either beat others or beat the computer. 4. Simulation Simulation software can provide an approximation of reality that does not require the expense of real life or its risks. 5. Discovery Discovery approach provides a large database of information specific to a course or content area and challenges the learner to analyze, compare, infer and evaluate based on their explorations of the data. 6. Problem Solving This approach helps children develop specific problem solving skills and strategies. Advantages of CAI †¢ one-to-one interaction †¢ great motivator †¢ freedom to experiment with different options †¢ instantaneous response/immediate feedback to the answers elicited †¢ Self pacing allow students to proceed at their own pace †¢ Helps teacher can devote more time to individual students †¢ Privacy helps the shy and slow learner to learns †¢ Individual attention †¢ learn more and more rapidly †¢ multimedia helps to understand difficult concepts through multi sensory approach †¢ self directed learning – students can decide when, where, and what to learn

Financial Analysis Of Tesco PLC

Financial Analysis Of Tesco PLC Tesco Plc is a leading UK retailer that operates in 13 countries across Asia, Europe and the United States. In order to evaluate Tescos financial positions in the market, vertical, horizontal and ratio analyses will be implemented. In addition, this report will benchmark two main competitors of the company, namely Morrisons and Sainsburys. Finally, in conclusion it will provide some recommendation for future investors and for those who are considering future employment in the company. 1. Review of Tescos financial fundamentals over the last 5 years. In order to examine Tescos performance, vertical analysis of the financial fundamentals for 2006-2010 would be implemented. 1.1 Income statement trends Table 3: % change PL account 2006/07 2007/08 2008/09 2009/10 Sales 8.08% 10.92% 13.95% 5.59% Cost of sales 8.17% 10.83% 13.84% 5.21% Gross profit 14.37% 4.82% 15.29% 10.08% Expenses 8.27% 10.47% 14.48% 5.80% Operating profit 16.14% 5.40% 13.54% 9.09% Finance income -21.05% 107.78% -37.97% 128.45% Finance cost -10.4% 15.7% 91.2% 21.13% Tax 18.95% -12.8% 17.8% 6.6% Retained profits 20.49% 12.16% 0.38% 9.26% Source: Tesco PLC Annual Report and Financial Statements 2007/10 Sales are the main measures for business growth. Tescos revenue has increased by 7.14% per year for the last 5 years. The slowing GDP growth and the deteriorating consumer confidence, which was result of the recent economic downturn, were the main reasons for the recent slowdown in the rate of growth. The absolute level of sales has still increased. of the companys sales levels. Notwithstanding the challenging economic environment, Tesco managed to maintain strong margins due to significant investments in new stores and lower prices, better pay rates and effective cost management. The lowest operating and gross profits figures were registered in 2007/2008 but this was a result of  £89m investment in US and integration cost from market acquisitions in Czech Republic, Poland and Malaysia. The most significant figure in 2009 is the increased amount of finance costs, from  £250m to  £478m or by 91.2% that was result of increased average net debt level slinked to acquisitions and foreign exchange movements, higher coupon rates on commercial paper and unfavourable changes in the non-cash IFRS elements of the interest charge (Tesco PLC Annual Report and Financial Statements 2009). This considerably affected retained profits and a slight increase by 0.38% was registered. Finally, in 2010 there was a significant increase of the finance income by 128.45%, resulting growth in the retained profits by 9.26% due to the consolidation of Tesco Bank. 1.2 Balance sheet trends Table 4: 2006/07 2007/08 2008/09 2009/10 Current assets 16.76% 37.67% 122.94% -16.23% Inventories 31.90% 25.84% 9.84% 2.25% Trade receivables 20.96% 21.50% 37.15% 5.01% Non-current assets 8.51% 17.96% 34.45% 6.77% Current liabilities 9.69% 25.90% 75.78% -11.23% Non-current liabilities 8.62% 31.48% 87.75% 2.06% Shareholders funds/Equity 11.93% 12.59% 9.18% 12.97% Source: Tesco PLC Annual Report and Financial Statements 2007/10 According to the balance sheet in 2007, the increase in stock and debtors outpaced sales that was quite inconvenience, while the fixed assets were satisfactory. The problem with the stock trend was reversed in 2009 and 2010, but the debtors level, and the liabilities along with the fixed assets grew faster than sales in 2009 as a result of the economic downturn and the consumers uncertainty (see table 4). 2. Ratio Analysis of Tesco Financial ratio analysis is one of the most common methods that provides a quick and relatively simple means of assessing the financial health of a business ( Atrill McLaney, 2006, pp168). 2.1 Profitability Ratios Profitability ratios provide an insight to the degree of success in achieving this purpose (Atrill McLaney, 2006, pp169). Table 5: 2006 2007 2008 2009 2010 ROSF 16.69% 17.96% 17.90% 16.57% 15.91% ROCE 12.70% 12.60% 12.70% 12.80% 12.10% Net profit margin 5.78% 6.21% 5.90% 5.88% 6.07% Gross profit margin 7.67% 8.12% 7.67% 7.76% 8.10% Source: Tesco PLC Annual Report and Financial Statements 2007/10 According to table 5 Tescos ROSF ratios vary between 16-18% and ROCE between 12-13%. In 2007 and 2008 the ratios are tend to increase while in 2010 a considerable drop can be noticed. This reduction is result of the companys strategy to continue investment even during the recession that has affected the returns in short term, but at the same time it promises progress in long term aspect (Tesco PLC Annual Report and Financial Statements 2010). Net profit and gross profit margin ratios have been also remarkably consistent over the 5 years period. Despite the recent economic downturn, Tesco managed to maintain its strong positions and due to efficient cost management, price cuts and increased focus on its clubcard loyalty cart, it raised pre-tax profit by 9% in 2010 (http://www.guardian.co.uk). 2.2 Efficiency Ratios Table 6: 2006 2007 2008 2009 2010 Stock turnover period (days) 15 18 20 19 19 Sales revenue to cap.employed (times) 2.62 2.56 2.38 1.93 1.90 UK Sales revenue per employee 170,923 177,084 179,840 196,436 196,120 Profit per employee 10,190 11,292 10,814 13,065 14,303 UK Sales per square foot 1303 1325 1322 1318 1311 Source: Tesco PLC Annual Report and Financial Statements 2007/10 Generally, the efficiency of Tescos performance during the last 5 years is persistent. Stock turnover ratio has been remarkably steady and has varied between 19-20 days over the last 4 years which is evidence for a good control of stock. However, from 2006 to 2010 sales revenue to capital employed ratio decreased significantly from 2.62 to 1.90 (by 27.5%) which was result of the considerable increase in the level of shareholders funds and non-current liabilities (by 173% and 55% respectively). Additionally, the most important ratios measuring business efficiency are sales per employee and profit per employee. Tescos ratios are satisfactory notwithstanding the declines in 2008 that are understandable bearing in mind the challenging economic conditions (see table 6). 2.3 Liquidity Ratios According to McLaney Atrill liquidity is vital to the survival of a business for there to be sufficient liquid resources available to meet maturing obligations (Atrill McLaney, 2006, pp169). Table 7: 2006 2007 2008 2009 2010 Current ratio 0.52 0.56 0.61 0.75 0.73 Acid test ratio 0.33 0.32 0.37 0.60 0.56 Cash generated from operations to maturing obligations 0.45 0.43 0.40 0.28 0.37 Source: Tesco PLC Annual Report and Financial Statements 2007/10 Tescos liquidity has considerably improved over the 5 years period due to strong cash generations and tight control of capital expenditure. Working capital also increased significantly, by 20%. However, liquidity ratios are still very low, current ratio varying from 0.5 to 0.7 and acid test ratio from 0.3 to 0.5. This seems disastrously when referencing to some textbooks that suggest that current ratio should be around 2 and the acid ratio should be around 1. But according to Atrill McLaney (2006) the current ratio will vary from business to business and a supermarket chain will have a relatively low ratio, as it will hold only fast-moving inventories of finished goods and all of its sales will be made for cash (no credit sales) (trill McLaney, 2006, pp 187). (See table 7) 2.4 Financial Gearing Ratio Gearing ratio is one of the most important indicators regarding the degree of risk associated with a businessà ¢Ã¢â€š ¬Ã‚ ¦it tends to highlight the extent to which the business uses loan finance (Atrill McLaney, 2006, pp169). Table 8: 2006 2007 2008 2009 2010 Gearing ratio 37.23% 36.53% 40.03% 53.86% 51.08% Interest cover ratio 6.26 7.04 6.81 5.64 5.01 Source: Tesco PLC Annual Report and Financial Statements 2007/10 There are no significant changes of Tescos gearing ratio during the last 5 years; it peaked at 53.9% in 2009 due to the significant increase of the long-term liabilities and the shareholders fund resulted of Homever acquisition in South Africa. On the other hand, interest cover ratio decreased significantly from 7 in 2007 to 5 in 2010, but the company still will not have problem to meet its interest (see table 8). 2.5 Investment ratios Investment ratios give an answer to the key question whether shares should be bought, sold or hold. Table 9: 2006 2007 2008 2009 2010 Earnings per share 20.04 22.36 26.95 27.14 29.33 P/E ratio 16.5 19.9 14.6 11.5 13.2 Dividend per share 8.63 9.64 10.9 11.96 13.05 Dividend cover 3.57 4.07 2.69 2.42 2.41 Dividend payout 27.98% 24.59% 37.18% 41.30% 41.44% Dividend yield 2.6% 2.2% 2.7% 3.6% 3.1% cash from operations /number of shares 0.44 0.45 0.52 0.63 0.75 Source: Tesco PLC Annual Report and Financial Statements 2007/10 Tescos earnings per share ratio has increased by around 46% over the last five years, which is a good trend. Dividend per share also registered an excellent growth by 51% for the 5 year period. Dividend cover ratio is another important ratio that determines whether company is attractive for investors. Tescos dividend cover ratio is decreasing significantly over the last 3 years, which is good for investors looking for capital appreciation. However, low dividend cover is unattractive for those seeking income (Fitzgerald, (2002, pp160). Dividend yield is another important investment indicator showing the actual return provided by the company. For 2006-2010 Tescos dividend yield ratio has been quite variable, the lowest rate was 2.2% in 2007 and the highest was 3.6% in 2009. In 2009 the high yield was affected by economic situation and the company was expected to have low profits growth. In contrast, low dividend yields mean that the company is expected to grow its profits quickly (Arno ld, 2004, pp 191) (See table 9). In addition, in 2009 the lowest P/E ratio was registered again because of the expectation for slowdown in profits (Arnold, 2004, pp 187). 3. Benchmark the performance of Tesco Nowadays, retail industry is characterised by very intense competition and in order to obtain clearer picture of Tescos growth, it would be useful to benchmark the company to some of its main competitors, namely Morrisons and Sainsburys, evaluating some fundamental financial indicators. Firstly, it should be taken into consideration the fact Morrisons and Sainsburys operates only at national level and Tesco is operating internationally. Therefore, there would be some significant differences in their indices in comparison to Tesco. Figure 1: Figure 2: Source: Tesco PLC Annual Report and Financial Statements 2010, Morrisons annual report and financial statements 2010 J Sainsbury plc Annual Report and Financial Statements 2010 Figure 1 clearly shows that for 2010, Tesco is the market leader with 63% sales levels compared to the whole three companies revenue. Sainsburys is the second with 22% and Morrisons is the third, registering 16% sales. In terms of profitability good sign is that all the three companies have managed to maintain its position even during the economic recession and continue to increase their profit numbers. However, comparing Morrisons and Sainsburys uncertain fact is that they obtained almost the same levels of profit in 2010, bearing in mind that Sainsburys is much bigger than Morrisons. Thus, Morrisons is found to be more efficient with margin of 5.9%, comparing to Sainsburys ratio of 3.6% (see figure 2). Additionally, while Morrisons and Sainsburys increased their return on capital employed ratio, even slightly, Tesco registered a significant drop in 2010, by 0.7%, result of the consolidation of Tesco Bank. However, from investors point of view, in long term, this is not an inconvenience trend because it will take some time until Tesco Bank start making any profits (see figure 2). Figure 3: Source: Tesco PLC Annual Report and Financial Statements 2010, Morrisons annual report and financial statements 2010 J Sainsbury plc Annual Report and Financial Statements 2010 When it comes to productivity, for 2010, again Tesco is on the top with the highest level of sales per square ft in UK, followed by Sainsburys and Morrisons. In terms of sales per employee, there is not a significant difference between the three retails, although Morrisons is presenting more convenience levels in contrast to Sainsburys (see figure 3). Figure4: Figure 5: Source: Tesco PLC Annual Report and Financial Statements 2010, Morrisons annual report and financial statements 2010 J Sainsbury plc Annual Report and Financial Statements 2010 From all the three companies, in 2010 Tesco registered the highest level of gearing, 51.08%, Sainsburys 38.4% and Morrisons 25.1%, which means Tesco I highly geared. This is not necessary uncertain fact because Tesco is a mature business with strong and reliable cash flows that can allow higher level. In terms of interest cover, Morrisons presents the most convinience positions with ratio of 15.11. Sainsburys and Tescos rates are low (see figure 4 5). Figure 6: Source: Tesco PLC Annual Report and Financial Statements 2010, Morrisons annual report and financial statements 2010 J Sainsbury plc Annual Report and Financial Statements 2010 Finally, Morrisons has the highest earnings per share ratio, 30.36p, but at the same time and the highest dividend cover, which is not very attractive for investors seeking income. Those investors would be more attracted by Sainsburys and Tescos ratio that are quite low, 2.43 and 2.41, respectively (see figure 6). Evaluation Conclusion Based on the analysis above, it could be concluded that Tesco is a growing company that demonstrates very convenience performance over the last 5 Years, increasing revenues and profits. However, in order to take objective investment decision, share prices and dividend trends should be taken into consideration. Over the last 5 years Tesco has increased its market shares. In October 2010, Tesco PLC reported semi annual 2011 earnings of 16.43 per share that is better than the last years result for the same period by 18.20% (markets.ft.com). In comparison to the FTSE 100 Index, for example, it also demonstrates good trends; over the last week Tesco outperformed the FTSE 100 Index (markets.ft.com) (see Table 10). On the other hand, Tescos current share prices (432.00p) do not seem so attractive, comparing to its rivals with lowest prices, Morissons- 269.20p and Sainsburys-376.00p. Additionally, in terms of the dividend yield rates, there is a significant drop from 3.6% in 2009 to 3.1% in 2010. This could be caused by several factors, but at the same time, it could be a warning sign that the prices are raised excessively and they might be overpriced (moneyweek.com). Table 10: Name 1 Week 1 Month 6 Month 1 Year 5 Year Tesco PLC -0.24% +2.48% +8.74% +2.57% +30.59% FTSE 100 Index +1.42% +1.63% +12.91% +10.83% +6.70% Source: Tesco PLC, markets.ft.com Finally, according to the Tescos ratio analysis and the benchmark there are some other uncertainties regarding liquidity and gearing in comparison to Morrisons and Sainsburys, for example. Thus, notwithstanding the satisfying dividend and earnings per share and the strong performance of Tesco, the current share prices do not look very attractive for buying. In this case, Morrisons might be more attractive for future investment noting its successful nationwide expansion, fast growing trend and low share prices. At first glance Tesco seems an attractive place to work as it has significant growth potential and has very strong positions in the market. The companys employment policy is very Overall you have made a good start here. You need to analyse the current share price, dividend yield and P/E ratio for Tesco to see whether it is worth investing. Even if Tesco is a strong performer in a business sense that doesnt mean we should buy its shares. The strength may already be reflected in the share price or, indeed, the shares may be overpriced. You need to look at share price trends and compare with the FTSE 100 or with an index for the food and drug retail sector. Or you could examine TSR and compare that with the competittion. You need to try to get a feel for whether the shares should be bought at the current price. You also havent answered the employment question you need to find some employee related data.

Child Abuse and Neglect :: Violence Against Children

Child abuse is defined by the U.S. Department of Health & Human Services as being, "Any recent act or failure to act on the part of a parent or caretaker which results in death, serious physical or emotional harm, sexual abuse or exploitation"; or "An act or failure to act which presents an imminent risk of serious harm."(Definitions of Child Abuse and Neglect 2015). Child abuse is a growing social problem which results in the death of about two thousand children annually. In just one day five children will die from abuse or neglect. In fact every thirteen seconds another child is abused in the United States. The fact that so many children are being abused and may be killed by this abuse is significant, but it is also important to realize that there are detrimental effects that the abuse may have on a child ten or twelve years later. The abuse that a child sustains may affect people in very different ways, but child abuse has never and will never have a positive effect on a child lat er in life. A child that goes untreated for having been abused has an increased likelihood of arrest for a violent crime than that of the general population by thirty eight percent. Children that have been abused have been found to have a greater chance of delinquency and a life of crime. Victims of child abuse have been proven to be more at-risk than people of the general population for negative personal and social events later in life. Since there are so many negative effects that child abuse has on people later in life, there have to be ways for people to speak about their problems and have other people's advice who have experienced similar abuse in their life. One way in which people may feel comfortable speaking of their past abuse is on-line on the World Wide Web. They can write about their experiences and get feedback from people with similar problems. People tell their personal stories of the abuse that they sustained as children and the negative effects that it has had on their life as adults. Many of the stories speak of ways in which some sort of child abuse, such as sexual abuse, has affected their lives as adults in their relationships with people of the opposite sex. Anyone can get on-line and tell their life story of abuse whether it be sexual, physical, or mental.

The Relation of Thought and Emotion in William Wordsworth’s Surprised b

The Relation of Thought and Emotion in William Wordsworth’s Surprised by Joy    Dr. Branson's comments: This essay was written in response to an explication exercise in a course designed to introduce students to the fundamentals of the English major. It demonstrates not only excellence as an explication, but also as an interdisciplinary application of psychological theory to literary analysis.    In the sonnet "Surprised by Joy," William Wordsworth relates an episode of his struggle to cope with the death of his young daughter. That this elegiac poem, written to express grief, begins with joy is a testament to its emotional complexity. Although the poem's emotions range between exposing extremes, the thoughts of the narrator remain stable. As he relates his experience, he looks back with an unfaltering conviction that nothing but sorrow must result. Cognitive psychology's concept of dissonance provides a useful insight into the relationship of thought and emotion in the sonnet. According to dissonance theory, when thoughts and emotions seem to contradict each other, a state of anxiety, called cognitive dissonance, will result. This anxiety motivates attempts to achieve stability by restoring the unity of thought and emotion~ In accord with the cognitive viewpoint, this sonnet differentiates between two types of emotions: those that are independent of conscious thought and are characterized as transient, instinctive, and arousing, and those that comply to conscious thought and are characterized as permanent, orderly, and tranquil. "Surprised by Joy" is a Miltonic sonnet with the turn occurring roughly in the middle of the first line of the sestet. Wordsworth uses the sonnet form to create tension in the octave and resol... ... The narrator's progression from instinctive to thought-based emotion is the central event in the poem. The psychological struggle that this progression represents concludes in a defeat. The joy and love that initially overtake the narrator can be seen as a sign that he is ready to abjure his grief-ridden thoughts and recognize a lingering spiritual bond with his daughter. He instead rejects these impulses. Thought is the component of our internal environment that we can directly control, and with it we can actualize or suffocate emotions. The narrator uses his thoughts to reject joy and accept sorrow. In this way, he perpetuates his grieving in the face of impending happiness. Work Cited Wordsworth, William. "Surprised by Joy." The Norton Anthology of Poetry. Ed. Margaret Ferguson, Mary Jo Salter, and Jon Stallworthy. 4th ed. New York: Norton, 1996. The Relation of Thought and Emotion in William Wordsworth’s Surprised b The Relation of Thought and Emotion in William Wordsworth’s Surprised by Joy    Dr. Branson's comments: This essay was written in response to an explication exercise in a course designed to introduce students to the fundamentals of the English major. It demonstrates not only excellence as an explication, but also as an interdisciplinary application of psychological theory to literary analysis.    In the sonnet "Surprised by Joy," William Wordsworth relates an episode of his struggle to cope with the death of his young daughter. That this elegiac poem, written to express grief, begins with joy is a testament to its emotional complexity. Although the poem's emotions range between exposing extremes, the thoughts of the narrator remain stable. As he relates his experience, he looks back with an unfaltering conviction that nothing but sorrow must result. Cognitive psychology's concept of dissonance provides a useful insight into the relationship of thought and emotion in the sonnet. According to dissonance theory, when thoughts and emotions seem to contradict each other, a state of anxiety, called cognitive dissonance, will result. This anxiety motivates attempts to achieve stability by restoring the unity of thought and emotion~ In accord with the cognitive viewpoint, this sonnet differentiates between two types of emotions: those that are independent of conscious thought and are characterized as transient, instinctive, and arousing, and those that comply to conscious thought and are characterized as permanent, orderly, and tranquil. "Surprised by Joy" is a Miltonic sonnet with the turn occurring roughly in the middle of the first line of the sestet. Wordsworth uses the sonnet form to create tension in the octave and resol... ... The narrator's progression from instinctive to thought-based emotion is the central event in the poem. The psychological struggle that this progression represents concludes in a defeat. The joy and love that initially overtake the narrator can be seen as a sign that he is ready to abjure his grief-ridden thoughts and recognize a lingering spiritual bond with his daughter. He instead rejects these impulses. Thought is the component of our internal environment that we can directly control, and with it we can actualize or suffocate emotions. The narrator uses his thoughts to reject joy and accept sorrow. In this way, he perpetuates his grieving in the face of impending happiness. Work Cited Wordsworth, William. "Surprised by Joy." The Norton Anthology of Poetry. Ed. Margaret Ferguson, Mary Jo Salter, and Jon Stallworthy. 4th ed. New York: Norton, 1996.

Blakes Portrayal of Creation in Songs of Innocence and Experience Essa

In Jerusalem, Blake famously asserted that 'I will not reason and compare: my business is to create'. This quote highlights the fact that Blake himself was participating in an inventive process. Northrop Frye commented that 'man in his creative acts and perceptions is God, and God is man? ' man's creativity is, for Blake, the manifestation of the divine. The Songs of Innocence and Experience deal with life and the move, in particular, from youth to age. Creation is an extremely important aspect of life [being its beginning], whether the subject is creating or being created. As religion plays an enormous part in all of Blake's poetry, we can expect creation to have some biblical resonance as well. Songs of Innocence and Songs of Experience portray creation ? as they portray most themes ? in entirely different ways. The innocent child in The Lamb automatically answers his own question when he asks ?who made thee It was, of course, God. But the child?s simple reply conceals more ominous symbolism. By linking himself to the lamb and Christ, we are reminded uncomfortably of Christ?s great sacrifice and the slaughter of animals in honour of pagan gods. The simplistic, idealistic version of creation in Innocence veils the darker face of a sub-textually present knowledge involving ritual or religious sacrifice, perhaps the inevitable surrender of innocence in favour of experience. Creation in Experience is much more complex. In contrast to image of the lamb, the tiger is a predator, no longer ?meek? and ?mild? but ?fearful? and ?deadly?. The poem progresses with a series of questions, constantly gathering pace and frequency. The poem reaches a climax at the question ?Did He who made the lamb make thee The narrator cannot reco... ...hat it leads to more questions. Blake was almost certainly making a point about the nature in reality of experience, after we have created and have truly been created as adults, we begin to reach a higher understanding of what it means to exist, including the knowledge of death and contingency. This may make us bitter, but it also enables us to become wise, perhaps even reach a higher kind of innocence, a second childhood, in acceptance of the inevitability of age. So while the mother in Cradle Song sings sorrowfully ?Sleep, sleep, happy sleep,/ While o?er thee thy mother weep? in recognition that her child will one day reach experience, she is also able to see the ?Heavenly face?, which ?Smiles on thee, on me, on all?, regardless of age and experience. For, it seems to suggest, we are all His children, and He bears the same love for His creations as we do for ours.

Kellogg Book Essay

This book is intended to be a resource for members of the Kellogg School of Management Class of 2005 as they look for summer internships in the consulting industry (as well as for general management internships) for the summer of 2004. The book will also be useful to current first-year students during the fall of 2004 as they look for full-time postKellogg consulting jobs, as well as to the yet-to-be-admitted Kellogg Class of 2006 in their summer and full-time job searches. While we hope this document results in more Kellogg students reaching their employment goals, we are also confident that using this resource to prepare for case interviews will reduce the stress associated with the interviewing process. Additionally, students will find this document to be a useful reference for Kellogg’s core strategy course, MGMT 431, regardless of whether or not they plan to interview for consulting jobs. This introduction will provide an overview of the different sections of the book, recommend how it is to be used, and offer general thoughts of how this fits book in to the bigger picture. To this last point, the book is not intended to be the only resource that Kellogg students will need during the recruiting process for consulting. Rather, it is meant to be a central body of work that provides a complete and thorough introduction to the process, offers its reader a road map of the basic toolkit needed to succeed in these interviews, and also points him or her to other resources that may be helpful. Background on this book and acknowledgements can be found in Appendix A. 2004 Kellogg Consulting Club Case Book 2 Sections This book is divided into six sections, plus five appendices. Section I is this introduction, whose goals are stated above. Section II provides an overview of the case interviewing process and offers general advice on how to perform magnificently during the interviews. (It is adapted primarily from the Fleischmann, Fong, and Marciano article that is alluded to in Appendix A, and has been reorganized into seven sub-sections. ) Section III provides ten sample cases. The first seven of these are meant to be solved in a 30-to-45 minute interview; the first six contain slides. The last three cases are shorter and attempt to emulate the 10-to-15 minute case nterviews that are used by some consulting firms. After all of the practice cases, Section IV discusses fit interviewing, which is a typically smaller, but no less important, part of the overall process. Again, this section is adapted primarily from the earlier work of Fleischmann et. al. Section V provides one-page overviews of each of the eleven consulting firms that are currently planning to in terview Kellogg first-years for jobs during the summer of 2004. Of special interest in this section are the interview formats used by various companies. Students who are interviewing should use this information to customize their case practice and preparation, based on the formats used by the companies that are most of interest to them. Finally, Section VI provides some concluding thoughts and attempts to synthesize the key â€Å"take-away† points of the book. How To Use The Book We would like to conclude this introduction by orienting the reader as to how we envision this book being used. We have mentioned previously that it is not designed to be the only available or necessary resource on the subject. Students who attempt to use it in this way are doing themselves a disservice. Instead, it should be used in tandem with the many other 2004 Kellogg Consulting Club Case Book 3 resources that are available, such as case books from other business schools, Kellogg Career Management Center (CMC) counselors, students at Kellogg who have worked in consulting or are planning to, company representatives and literature, and the rest of the list of resources that is summarized in Appendix B. As for this book, sections I, II, IV, and VI are written to be read straight through (not necessarily in only one sitting). Section III provides practice cases that should be used or studied one at a time. Section V provides thumbnail data on companies that are interviewing at Kellogg, and is meant to be a quick reference for students who are interviewing in those firms. Particular attention should be placed on the various interview formats used by each different company. To maximize results, candidates should study cases that most closely mimic the ones that are given by the firms that they are planning to interview with and/or most want to work for. It is our hope that the combination of this book and of other available resources will maximize the effectiveness of Kellogg students during the winter quarter 2004 interviewing process. If anyone has any questions about the book or the process, they should feel free to directly contact me, either of the Associate Editors, Prof. Marciano, the Kellogg CMC, or any of the 2003-2004 Kellogg Consulting Club co-chairs1. We are all here to help Kellogg first-years get as many summer consulting job offers as possible. Best of luck in the process! Edwin Van Dusen Editor, 2004 Kellogg Consulting Club Case Book Evanston, Illinois December, 2003 1 The co-chairs are Leo Castro, Ami Fadia, Hanna Norfleet, Jason Greenwald, Brian Oxley, and Ojas Wadikvar, all from the Kellogg Class of 2004. 2004 Kellogg Consulting Club Case Book 4 II. How to Ace Case Interviews2 Overview of Section This section provides a complete and comprehensive overview of the case interview process and is probably the single most important section in the book, along with Section III on practice cases. It offers advice on how to best navigate the process, and is divided into seven sub-sections to make the material easier to understand and digest: 1. Sub-section one provides an overview of the case interviewing process. 2. Sub-section two discusses the use of frameworks, and the need to strike a balance between a structured approach and the pitfalls of an overly regimented analysis. 3. Sub-section three walks through a step-by-step illustration of a case interview and is in turn sub-divided into five parts. 4. Sub-section four reviews several common case situations and how to handle them. These include public math, how to get unstuck, and the infamous estimate questions. 5. Sub-section five reviews seven common types of cases that are frequently found in case interviews. 6. Sub-section six goes through some overall tips on how to handle the process. Please do not be put off by the â€Å"laundry list† format of this section, for it contains some important nuggets of advice and wisdom. 7. Finally, sub-section seven provides some concluding thoughts about the process. 2 As mentioned in the Introduction, the text in this section has been primarily adapted from the 2001 Fleischmann, Fong, and Marciano article, although some of the content and wording are new. They, and we, would like to give special thanks to Jason Moss and Chris Riley (both members of the Kellogg Class of 2001) for their invaluable contributions to the initial document, from which this section is primarily adapted. 2004 Kellogg Consulting Club Case Book 5 We have endeavored to distill the most important aspects of the case interview process into this section while keeping it to a manageable length. Obviously, since entire books have been written on this subject, it was not possible for us to include every detail or every opinion on the matter. Students should probably begin by reading this section to get the major points, and then can consult some of the additional resources listed in Appendix B if they feel that they still need to get more depth and detail. Sub-Section One of Seven – Overview of Case Interviews This section will describe the format and structure of case interviews, discuss the various types of cases that one may encounter, and provide practical tips and advice on enhancing one’s chances for success. Fit interviews will be discussed in Section IV later in this book. The consulting interview process may be unlike any series of interviews that a person has been through before Kellogg. While each consulting firm has its own distinct style and method of interviewing, virtually all screen candidates using a combination of â€Å"fit† and â€Å"case† interviews. Understanding and being prepared for both of these types of interviews improves one’s chances of obtaining a position in the field and also reduces the angst associated with the process. The framework is simply a tool to help you structure your response, so do not get too hung up here and waste valuable time that you could be using to advance the discussion. Your initial framework should be a broad sketch, not a detailed blueprint, of how you intend to go about solving the case problem. The details of your analysis should evolve interactively with the interviewer as you progress through the interview. Based on the framework you have developed, you should be able to identify several possible paths towards addressing the case issue. For example, consider a case about Firm X whose profits declined last year. Firm X’s reduced profits could be due to sagging revenues, rising costs, or both. Given that your interview time is limited, it is important to prioritize the issues you will investigate in the case. Investigate the most likely solution to the problem first, followed by the second most likely, and so on. The initial information that you have been given 2004 Kellogg Consulting Club Case Book 14 may steer you towards a particular path. Take cues (subtle or overt) from your interviewer about which paths hold the most merit. For example, if you were told that Firm X recently altered its product mix, you might want to start by examining the prices of its various products. Based on the information you have received, and the framework you have developed, you should formulate an initial hypothesis about the case problem you are evaluating. In the parlance of case interviews, a hypothesis is what you believe to be the central issue of the case, or the solution to it. With regard to Firm X, your initial hypothesis could be that the root cause of its declining profits is that it is selling relatively more low price/low margin products than it had in the past. You may not be given enough information at the onset of a case to develop a reasonable hypothesis from the start. If that happens, progress through your framework, elicit information from the interviewer, and develop a hypothesis as soon as you can. If your initial hypothesis turns out to be wrong, which is often the case, try another one. It is not an automatic â€Å"ding† to not guess the answer correctly on the first try. But it is a likely â€Å"ding† to give up or to lose sight of the main issue, which is to eventually solve the client’s problem. Some firms are more or less receptive to hearing an interviewee, very early on, state a hypothesis for analysis. The key lesson here is to know the firms that you are interviewing with. If you are interviewing with a firm that conducts its cases/engagements with an â€Å"Answer First† approach, then you should probably state a hypothesis early and then relate findings to it as the case progresses: â€Å"this supports my initial hypothesis†¦Ã¢â‚¬  or â€Å"that seems to refute my initial belief, my revised working hypothesis is now†¦Ã¢â‚¬ . Other firms may conduct their work by doing much more detailed data collection before forming a hypothesis. In this case, strive to form a hypothesis, but hold back on stating it until you have collected more data: â€Å"OK, I think I now have enough information to form a hypothesis – based on facts A, B and C, it looks like X might 2004 Kellogg Consulting Club Case Book 15 be happening. Here’s how I would evaluate whether X is truly going on†¦Ã¢â‚¬  With these firms, you may look like you’re jumping to conclusions if your hypothesis isn’t fact-based. Ask members of the firm about their firm’s preference prior to your interview (that’s what all those cocktail receptions are for). Step Three of Five – Articulation After you have developed your analytical framework, prioritized potential solution paths, and formulated your initial hypothesis, the next step is to articulate them to the interviewer. In the case of Firm X, it might go something like this: â€Å"Given that Firm X has experienced a decline in profitability, I am going to begin my evaluation by investigating the various elements that make up profit, namely revenues and costs (framework). Since you mentioned that Firm X has seen its product mix change over the past year, I will begin by analyzing the firm’s revenues, focusing first on pricing (prioritization). It could be that a decline in Firm X’s average price is causing its profits to suffer (hypothesis). If that turns out not to be the case, then I will look at changes in the company’s cost structure. † It is critical in case interviews to demonstrate a structured, logical, and thorough thought process. If you do not verbalize your thought process to the interviewer, (s)he will not be able to evaluate your performance. In addition to talking through your thought process, you may find it beneficial to sketch out your analysis framework on your note pad. Writing down your framework will help you to organize your thoughts, and to regain focus if you get stuck or your analysis becomes very complicated. Just as importantly, an illustrated framework shows the interviewer that you are thinking in a structured manner, and makes it easier for him or her to guide you. Many successful consulting interviewees extol the importance of â€Å"paper management† in case interviews. Interviewers often encourage candidates to take notes, and some even keep 2004 Kellogg Consulting Club Case Book 16 those notes to help remember the path that the interviewee took during his or her case. Whether or not this happens to you, your notepad is an excellent communications medium during your interview. Consultants are generally graphical thinkers – even if they didn’t start this way, they now communicate in slides, charts, and graphs. Speak their language – sketch out your thoughts on your paper, write large, and show the interviewer what you are doing. It is not uncommon for an interviewer to look under an interviewee’s shoulder onto his or her notepad, and comment on it and/or ask questions about its contents. For example, â€Å"I see from your notes that you have come up with five reasons why Firm A should acquire Firm B, and the first one is distribution synergies. What do you mean by that? † Draw out your framework so that the interviewer can see where you’re going, and steer you accordingly. Many interviewees divide their paper into three sections. In the first section, they note facts about the situation (both those given in the initial situation explanation as well as facts uncovered through questions). In section two, analysis is performed, and in section three key findings/conclusions are noted (this section is especially helpful when the candidate is asked to â€Å"sum up† at the close of the case). Note: this does not have to all occur on the same page – feel free to use multiple sheets of paper; the clearer your actions are to the interviewer, the better. Be as graphical and as structured as possible whenever you seek to convey concepts like organizational structure or whenever you do quantitative analysis. Quantitative analysis, in particular, should be laid out in rows and columns â€Å"Excel-style† (ideally with the equation noted above the columns) so that interviewers can follow your calculations. Doing fancy math in your head is great, but it’s more important to illustrate to the interviewer how you are coming to your numbers than to wow them with calculation speed. Your arithmetic may be correct, but your equation may be missing a critical variable. Drawing out your thoughts helps the interviewer 2004 Kellogg Consulting Club Case Book 17 identify this and correct your course. This is far preferable to leaving the interviewer wondering why your number does not match the number that is given in the case solutions. To err is human, but to do so in a way that leaves the interviewer wondering about whether the problem was with your arithmetic or your thought process is likely to prove fatal. Step Four of Five – Analysis: Ask Questions, Gather Information, and Test Hypotheses Having articulated your framework and initial hypothesis, you are ready to move into the analysis phase, which should be the bulk of the interview. In the analysis phase, you should ask questions, synthesize the information provided, and draw conclusions based on the facts. By asking questions and bringing to light new information, you will be able to determine whether your initial hypothesis was valid or invalid. If the data proves your hypothesis to be invalid, systematically follow your framework and progress to the issue with the next highest priority. In addition, based on new information you receive, develop a new hypothesis as soon as possible. For example: â€Å"Based on what I’ve learned so far, it appears as though Firm X’s product mix and revenues are not the most important cause of its declining profitability. So now I’ll move on to investigate the firm’s costs (transition to next branch of the framework). You mentioned that Firm X recently signed a new agreement with its unions, so I’ll start by examining its labor costs. It could be that an unfavorable union contract has inflated the firm’s labor expenses and negatively impacted its profits (new hypothesis). † Asking questions, collecting information, and developing and testing hypotheses is an iterative process, and constitutes a good case interview. As you receive answers to your inquiries, you should be able to hone in on the solution to the problem, and the interviewer may point you in the right direction. Even if all of your hypotheses are ultimately proved invalid, if 2004 Kellogg Consulting Club Case Book 18 you have solicited relevant facts and drawn conclusions in a structured, logical manner, you will have done well. Do not forget that it is important to verbalize your thought process throughout the entire interview. Avoid long periods of silence — the interviewer is attempting to evaluate how you think, and mute introspection precludes this. When doing calculations, tell the interviewer everything that you’re doing. This maximizes the interviewer’s ability to coach you and illustrates your thought process. It takes practice to be able to do this with aplomb, but it is a skill well worth developing. Asking questions is a fundamental part of the process, but remember to do so within the context of your framework, as opposed to firing off questions in no particular order. As you work through the case, it is a good idea to verbally summarize where you are, what you have learned, what the information means in diagnosing the problem, and where you are headed next. Summarizing can also be a useful technique to buy yourself time to think if you become stuck. Take caution not to summarize too frequently, however, because it takes away from the time that you should be using to analyze the case issue. Step Five of Five – Summary and Recommendation When you feel you have covered all the bases in your analysis, or when you have run out of time, end by summarizing the situation and providing a recommendation. If at all possible, always end your interviews with a succinct recommendation. Try not to recap the path of analysis that you have just performed. Instead, draw on key facts to give a clear answer to the central question of the case. For example, â€Å"I do not recommend that the firm enter the market, given that the industry in question is characterized by low barriers to entry, intense rivalry, and significant supplier power† (all of which you discovered through your analysis). 2004 Kellogg Consulting Club Case Book 19 You might also add next steps or additional considerations, as appropriate, to make your analysis more balanced and thorough. For example, â€Å"Based on the discussion that we had today, I would not recommend at this point that the firm enter the market. However, I would also want to know more about the regulatory trends in the market, and about the industry’s distribution channel mix, before making a final decision in a real situation. † Remember, cases are usually complex. If you imply to the interviewer that you have completely addressed the issue in 30 to 45 minutes, you may be perceived as short-sighted or arrogant. It’s much better to state what you’ve found and can reasonably infer, and then identify the areas that you’d like to further penetrate (if given more time) and the assumptions that you’ve made that you think your conclusions are most sensitive to. An important point to keep in mind is that even if you are dead wrong, if you have approached the problem in a logical, structured, and thorough manner, you have done well. You will likely encounter the â€Å"elevator test† at the end of some of your interviews. It typically goes something like this, â€Å"We’re out of time. Sum this up in 30 seconds so I can tell the client our major findings. The purpose of this exercise is to see whether you can identify the most important elements of the case, distill complex issues into concise, easily understandable terms, and maintain your poise when thrust into a stressful situation.