How Entertainment Television Shapes Social Values and Beliefs

Television entertainment has become one of the most popular sources of entertainment in world over the last five decades because of the ever increasing size of television audience across the world. Researchers have found out that the young people and women form the majority of the audience and in the process making the most probable candidates to be affected either positively or negatively by television entertainment (Bushnell 67).Advertising We will write a custom essay sample on How Entertainment Television Shapes Social Values and Beliefs specifically for you for only $16.05 $11/page Learn More Television episodes and series highlight and portray different societal values and beliefs that can either be positive or negative. These values and beliefs propagated by television have a great potential of shaping the value and belief system of the society because the young people who are the majority television viewers form the present and the future society . It is therefore important for television channels to air programs that can promote positive values and beliefs in the society. This paper will discuss how the themes highlighted in the Sex and the City television series and how the series contributes in shaping social values and beliefs. The television genre of a television program helps the audience to try and understand the cultural and historical conditions under which the program was produced and its subsequent consumption (Bushnell 118). It is therefore very important in television entertainment because of its ability to meet the expectations of the audience. The generic form of a television program or series how attractive the program becomes to the audience. Most television programs and series like Sex and City have a programming format and genre that is hybridized. Sex and the City is credited for mixing generic styles and feminine identities as a way of understanding gendered politics (Bushnell 118). Sex and the City can be regarded as a post-feminist joke narrative with a format that highlights the current ideological struggle. This series reflects a romantic comedy genre that focuses on the life of single girls in the city. The series transforms the past generic codes with generic elements that entirely represent feminism, gender identities. All the themes represented in the series represent gendered cultural performances in a woman’s fantasies. The sex and the City series combines different generic forms such as romantic comedy, s9tcom comedy together with fairytale narratives to highlight the uneasy relationship of a heroine, the pursuit of a perfect body and the fairy-tale romance with a happy ending.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More The narrative structure of Sex and the City is very unique in the sense that it highlights the complex issues commonly faced by single women in the societ y (Douglass 56). The central theme in each episode is brought out by a single character and this helps the characters a great deal in identifying themselves with the audience. The series has got a voiceover narration coupled with a well developed spectatorship which helps in highlighting how women relate with technology as well as constructing multiple meanings. Carrie Bradshaw, who is the main character in the series, is often used to pose the central theme of each episode. She poses the main theme in form of a question and this often forms the basis of her topic in her Weekly newspaper column. This series has over 11 million viewers across the world and is among the first programs to present sexually explicit discussions and scenes (Douglas 56). The four characters in the Sex and the City series are presented as single women who are independent with each having one of them having a success career. Despite being single, their relationships are highlighted in different states such a s marriage, divorce, cohabiting and committed relationships (Bushnell 95). This show has a clear format and structure that highlights single lifestyle and multiple personality. Sex and the City emphasizes on sexual objectification of women which appeal to women viewers in multiple ways. The four women characters in the Sex and the City have successful careers that make them receive a lot of admiration from women viewers (Bushnell 81). Apart from enjoying success in the irrespective careers, these characters have relationship troubles that many women can identify with. The varied use of different locations in New York City brings a sense of realism to the series. The use of the voice is a very important feature in this series because it gives the show a feminine identity. Sex and the City highlight post feminist attributes as it explores the political issues of race and activism. The show also highlights how women relate with technology, men and fashion (Bushnell 83). The voiceover n arration depicts internal struggles with no definite solutions to the dilemma. The main characters namely Miranda Hobbes, Carrie Bradshaw, Charlotte York and Samantha Jones have got unique perspectives about life a thing that helps in conveying multiple meanings. These characters have different perspectives on sex and in the basis forming four different stereotypes on sex. The show uses irony, humor and complex relationships in order to present multiple meanings (Bushnell 83).Advertising We will write a custom essay sample on How Entertainment Television Shapes Social Values and Beliefs specifically for you for only $16.05 $11/page Learn More The central question of each episode in the Sex and the City series is often based on the problematic nature of power, sexuality and gender. Each character deals with the issue of gender ambiguity in a different way. In the episode titled â€Å"Boy, Girl, Boy Girl† in season three highlights the gender issue s with the major question being whether the opposed sex has become obsolete (Bushnell 98). The variety of storylines presented in this series depicts quite a number of social themes that different groups of people in the society can relate to. The themes are depicted in a more direct manner and do not require any form of interpretation (Bushnell 24). The theme of sexual immorality is one of the highly depicted themed in this series. The four characters explicitly represent women as sex object and in process portray unsafe sex as being glamorous without paying any attention to the negative effects associated with it such as sexually transmitted diseases and unplanned pregnancy. This show has increased the likelihood of teenage pregnancies because the scenes presented in the show tend to influence the young people giving them the urge to practice what they watch in the show (Bushnell 103). Some of the characters practice lesbianism which is still a contentious issue in the society. Ga y relationships are depicted in many episodes and this has the potential of changing the perspective of viewers about gay relationships and encourages some of them to start practicing lesbianism and homosexuality. Feminism is one of the most popular cultures in recent times and is profoundly depicted in the Sex and the city show (Bushnell 103). The feminist voice in the Sex and the City has a great influence on the behavior and life of women viewers. The Sex and the City series depict first-wave feminism. Miranda and Charlotte are drunkards who openly portray the hatred they have for their children. The series celebrates women and their struggle to live liberated lives. The four female characters put their friendships as the first priority and honestly engage in honest discussions about sex with each giving their independent views (Bushnell 156). Their conversations are female centered and are full of humor with many people labeling the show as a feminist television show. Sex and th e City downplay the issue of marriage and motherhood. The characters appear not to be very enthusiastic on facing the challenges in the institution of marriage and motherhood. The show does not seem to support the people with intentions of getting married and becoming mothers.Advertising Looking for essay on art and design? Let's see if we can help you! Get your first paper with 15% OFF Learn More The Sex and the City series celebrate wealth and portray the experiences and ideas of women in a particular class in the society. The different conversations on gender highlight the emphasis on gender issues on the show. The show clearly depicts the changing women roles in the society (Bushnell 156). The characters have varies conversations concerning men and women. Traditional gender roles are completely broken by the characters in this series. Miranda is an established lawyer who is able to take care of her self without having to depend on men. She becomes a shareholder in a law firm and even goes ahead to by her own apartment (Turkle 109). The men in the show are only meant to satisfy the sexual desires of men. The series represents the fact that the society is no longer dominated by women but women are slowly starting to find their place (Turkle 109). The Sex and the City series tend to be sexist and racist in the fact that it tackles issues related to white women. The women are also involved in a power struggle with men and are eager stamp their authority in relationships and places of work. The feminist movement in the sex and the city tends to promote gender equality and in the process give more power to women. The female characters in the show are empowered and completely refuse to be under the authority of men (Gurley-Brown 98). The setting of the sex and the city is New York City and this plays a major role in depict the way of life in the city. New York is one of the largest cities in the world and represents all the elements of city life in a perfect manner. The series is captured in different scenes within the city and highlights the liberal nature of a city woman. The city is depicted as the epicenter of all economic and social movements (Turkle 78). The city represents civilization but at the same is portrayed as center of moral degradation. The four women characters put on expensive shoes and clothing to highlight how the modern woman is financ ially independent and can afford expensive things just like men. The show has actually transformed many women in both positive and negative ways. Women are now able to share their experiences honestly and in the process their friendships have experienced significant improvement. The show has removed the timidity in some women and has given then the courage to confront the challenges facing women in the society (Turkle 78). The other positive thing about the Sex and the city series is the fact that women can now celebrate ageing. An example of this is when Samantha admits that she is forty five years old and proud of it. The series is however very racist by the fact that it emphasizes on being thin, white and beautiful as a recipe for becoming successful as a woman. The characters in the series represent extremes and therefore make it easy for women with different preferences to associate with them. The series has a large influence on many women on various issues concerning and is th erefore a very perfect example on how television entertainment affect social values and beliefs (Gurley-Brown 34). In conclusion, it is important to note that television entertainment will continue to shape social values and beliefs of the current and future generations. Sex and the City is a television series that enjoys a large following around the world especially from women and young people. The characters in the series depict various themes that affect the society such as immorality, feminism, gender, power, city life and women empowerment. The show portrays both positive and negative influences to women and the society in general and therefore one can not afford to downplay the effect it has on the general values and beliefs in the society. Television entertainment therefore has the ability to make or break a society depending on the type of information passed to the audience. Works Cited Bushnell, Candace. Sex and the City, New York: Warner Books, 1996. Print. Douglas, Susan. Where the Girls Are. New York: Three Rivers Press, 1994. Print. Gurley-Brown, Helen. Sex and the Single Girl. New York: Bernard Geis Associates, 1962. Print. Turkle, Sherry. Life on the Screen. New York: Touchstone, 1995. Print. This essay on How Entertainment Television Shapes Social Values and Beliefs was written and submitted by user Augustus C. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

ASX Listed Company Qantas Airline Limited

ASX Listed Company Qantas Airline Limited Introduction Background information During the period ranging from mid 1990s to 1999, the global aviation industry experienced a rapid growth arising from increase in demand for air travel. In addition, there was an increase in Gross Domestic Product  ­ (GDP) in most countries.As a result, the industry grew with a margin of 4% to 6% annually.Advertising We will write a custom assessment sample on ASX Listed Company: Qantas Airline Limited specifically for you for only $16.05 $11/page Learn More However, this trend was reversed at the beginning of the 21st century as a result of changes in the international business environment. The airline industry is characterized by a high degree of volatility. As a result, changes in the international business environment have a significant effect in the operation of all firms in this industry. One of the firms that operate with in the airline industry is Qantas Airline Limited. The airline operates within the Australia n airline industry. Since its establishment in 1920, the airline has managed to establish a portfolio of businesses which include Qantas Holiday, Qantas Frequent Flyer Program, Qantas Freight, Qantas Catering, Qantas, Engineering, and Qantas Defense services within the industry. The firm serves diverse customer categories that include corporate customers, the government, leisure travelers, wholesalers and travel agents. Some of the contemporary issues facing the firm relate to the recent economic downturn, increase in fuel prices and threat of terrorism. These issues have affected the performance of Qantas Airline in the Australian Stock Exchange. In an effort to understand how these issues have affected the firm, the researcher sought to conduct an in-depth analysis of the issues. Analysis of the contemporary issues Financial crisis In its operation, Qantas Airline faces numerous financial risks which have a potential of creating a problem in the firm’s future cash flows. Th e financial risks emanate from changes in the global economic environment. For example, the recent global economic recession that originated from failure of the US financial institution affected the operation of the firm in a number of ways. For example, there was a reduction in demand for air travel amongst customer in different categories.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More During this period, consumers sought alternative means of transport both in the local and international market. Considering the fact that consumers are price sensitive, one of the sectors which pose intense competition to the firm is the low cost airline. According to Gross and Schroder (2007, p.12), low cost carriers are offering less expensive mode of air travel. As a result, most consumers are considering the low cost carriers as the most cost effective mode of air travel. Low cost carrie rs have a higher cost advantage compared to full service carriers which averages 51% as illustrated by figure 1 in the appendix (Cento, 2009, p.21). The increased adoption of this business model within the airline industry is posing a threat in the survival of traditional airlines such as Qantas Airlines. The low cost carriers operate within the same route as Qantas thus leading into a significant reduction in the firm’s sales revenue hence its profit. During its 2009 financial year, the airline’s profit amounted to 181 million. This is a lesser amount compared to its profit during the 2008 financial year which amounted to $ 1,408 million. This indicates a rapid reduction in its profitability. Reduction in the sales revenue culminated into the firm experiencing a significant decline in the firm’s cash flow. According to Loudon (p.297), the global airline industry is characterized by high fixed, high capital investment and intense price competition. Therefore a r eduction in the firm’s cash flow may affect the firm’s working capital. As a result, the firm would not be able to meet its operation cost. In an effort to survive in such economic environment, the firm may decide to source debt finance from financial institutions.Advertising We will write a custom assessment sample on ASX Listed Company: Qantas Airline Limited specifically for you for only $16.05 $11/page Learn More However, some financial institutions are not willing to advance debt finance to airlines due to the volatile nature of the industry. In such a situation, financial institutions increase the cost of borrowing as a risk mitigation measure. In addition to interest rate exposure, the airline firms also face currency exposure which arises from fluctuation in the exchange rate. This is due to the fact that its expenses and revenues are denominated in different currencies. Increase in fuel price The profitability of the airline industry is dependent on changes in fuel prices (Vedder, 2008, p. 18). This is due to the fact that jet fuel forms a key component in the operating cost of airlines. Currently, Qantas Airline is facing a risk of fuel crisis as a result of changes in the geopolitical environment in the Middle East countries which are a producer of fossil fuel. The unrest in the Middle East countries is leading into a shortage in fossil fuel hence affecting the price. According to Loudon (p.299), changes in fuel prices have a direct effect in the cash flow of airlines. In the short term, the airlines revenue may be marginally affected. However, the long term effects may be adverse since the cost will be passed on to the customers. By the end of March, the management of Qantas announced an increase in its ticket prices in its domestic market. For example, travelling within Australia increased with $ 10 while the cost of travelling to New Zealand was increased with a margin of 8%.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The management team cited the skyrocketing price of jet fuel as the major cause. During its 2nd quarter in 2011, the firm estimates its jet fuel cost to be US $ 2 billion. In an effort to survive in this dynamic environment, the Qantas Airline had decided to reduce its size of management team and its domestic and international capacity. Threat of terrorism According to Seidenstat and Splane (2009, p.250), the global airline industry is also faced by a risk of increased terrorism. Most terrorism groups around the world are targeting airline companies to undertake their attacks as illustrated by the September 11, 2001 attack in the US. Terrorism adversely affects airline sales revenue. This arises from the fact that the customers’ preference for air travel is significantly reduced. Solution Despite the changes in the international business environment, it is vital for firms to develop a high competitive advantage. This will enable them to survive in the long term as going conce rn entities. According to Hoskisson, Hitt and Ireland (2008, p.108), there are various ways through which a firm can develop competitive advantage. However, the firm has to ensure that its products or services are unique from those of its competitors and that they cannot be easily imitated. Adoption of the Low Cost Carrier Model Considering the changes in the global airline industry, it is important for Qantas to develop strategies to safeguard against incurring decline in its cash flow. For example as a result of the global economic crisis, the airlines management team should consider integrating the low cost carrier business model. This will enable the firm to operate cost effectively. The resultant effect is that the airline will be able to adjust its pricing strategy so as to deal with the prevailing price wars. Adjusting the price will contribute towards the firm increasing its sales revenues and hence its profitability since a large number of customers will be attracted to the airline (Wu, 2009, p. 23). Increase in profitability will enable the firm meet its high fixed costs and other operating costs. Alternative source of Jet fuel Considering the effect of rise in jet fuel prices on the firm’s operation, it is paramount Qantas Airlines to undertake a comprehensive cost-benefit analysis with regard to utilizing alternative fuel. A research conducted by NASA in US revealed that utilizing alternative is cost effective (National Research Council, 2006, p. 104). The firm’s management team should consider utilizing alternative jet fuel rather than over depending on petroleum based fuel. Some of the alternative fuels which should be considered include gasified fuels derived from coal and natural gas fuel. According to a research conducted by NASA on the effectiveness of these fuels, it was revealed that these fuels have the necessary energy required to fly a commercial flight. One of the alternative jet fuels which the firm should incorporate is biofuel. The firm can venture into production of biofuel using different agricultural crops such as soya and jatropha. Other alternative fuels which the firm should consider utilizing include methanol, ethanol, and hydrogen (Bassam, 2010, p. 16). By utilizing these alternative fuels, the firm will be able to caution itself against increase in the petroleum based jet fuel which is highly volatile to changes in the political environment. By integrating alternative fuel, the firm will be able to operate in a social responsible manner. This arises from the fact that firm will be able minimize emission of carbon dioxide which is a major cause of climate change (Hackey Neufville, 1999, p.243). Safety measures Airline companies have a responsibility to ensure that their customers are safe. Considering the rise in the rate of insecurity within the industry, Qantas, airline should consider enhancing the security of the passengers. One of the ways through which the firm can enhance its secur ity is by integrating a technology that screens all the passengers to ensure that there are no threats in the course of the flight. In addition, the airline should ensure that people within its facilities are not threatened by terrorism. For example, firm should employ sufficient and professional security personnel. Conclusion The analysis illustrates indicates that the Qantas Airline is faced with a number of challenges emanating from the macroeconomic business environment. The major contemporary issues that the firm is facing includes changes in the global economic crisis, rise in the price of jet fuel and threat of terrorism. These business changes in the macroeconomic business environment within the airline industry are beyond control of firms in this industry. However, management teams of firms within the Australian airline industry such as Qantas can develop strategies aimed at countering changes in the international business environment. Recommendations In order to survive in the volatile airline industry, it is vital for Qantas Airline to consider the following recommendations. The management team should consider integrating the low cost carrier model. This will enable Qantas to appeal to a large number of potential customers since it will be able to price its flight more fairly. The airline should also consider utilizing alternative fuels such as hydrogen and biofuel. This will improve the firms’ commitment towards environmental conservation by limiting the amount of emissions. Reference List Bassam, N., 2010. Handbook of bioenergy crops: a complete reference to species,  development and application. London: Earthscan. Cento, A., 2009. The airline industry: challenges in the 21st century. Heidelberg, Germany: Physica-Verlag. Gross, S. Schroder, A., 2007. Handbook of low cost airlines: strategies, business  processes and market environment. Berlin: Enrich Schmidt Verlag. Hackey, J. Neufville, R., 1999. Lifecycle model of alternative fuel vehicles: emissions, energy and cost trade-offs. Transportation Research Part A: Policy and Practice. Vol. 35, issue 3, pp. 243-266. Massachusetts: Massachusetts Institute of Technology. Hoskisson, R., Hitt, M. Ireland, D., 2008. Competing fro advantage. Mason, OH: Thompson. National Research Council. 2006. Decadal survey of aeronautics: foundation for the  future. Washington, D.C: National Academies Press. Loudon, G., 2004. Financial risk exposure in the airline industry: evidence from Australia and New Zealand. Australian Journal of Management. Vol. 29, issue2. Sydney:The Australian Graduate School of Management. Seidenstat, P. Splane, F., 2009. Protecting airline passengers in the age of terrorism. Santa, Barbara: Praeger Security International. Vedder, H., 2008. Strategic alliances in the aviation industry an analysis of past and  current developments. Munchen: Grin-Verl. Wu, C., 2009. Airline operation and delay management; insights from airline economics,  networks an d strategic schedule. Farnham: Ashgate. Appendix Figure 1: Comparison of Low Cost Carrier with Full Service Carriers. Cost reduction Cost per seat Full Service Carriers 100% Low cost carrier High aircraft utilization -2 82 Higher seating density -16 84 Lower cabin crew cost -3 79 Outsourcing maintenance -2 75 Use cheaper secondary airport -4 73 Minimal station cost -7 66 Fewer passenger services -5 61 No agents/GDS commissions -6 55 Reservation cost -3 52 Fewer costs -3 49% The chart illustrates that low cost carriers have a cost advantage of 51%.

Wal-Mart Essay Example | Topics and Well Written Essays - 500 words

Wal-Mart - Essay Example The website is very well organized in terms of links and images. The left hand side of the e-store has a list of categories of consumer items for sale. The check-out function of the website is very easy to use. Wal-Mart can be benefit a lot from a more aggressive e-commerce strategy. The global market for online sales is huge. In 2010 e-commerce sales were $153 billion (Plunkett Research, 2011). Wal-Mart should look to increase its market share of this multi-billion dollar marketplace. The beauty of e-commerce is that it has the potential to reach a hundred percent of the global population of 6.9 billion. Wal-Mart has to look for ways to increase the traffic of its website. Simple solutions such as offering a discount coupon with every Wal-Mart receipt redeemable at its online stores can help increase the revenue of the store. The firm should advertize the site in TV commercials, radio, and in the press. An untapped market that could help the company increase its ecommerce sales is c ellular video advertizing. The assistance of G4 networks is enabling people to use the internet more through smart phones such s the I-phone.

Study Guide Assignment Example | Topics and Well Written Essays - 500 words

Study Guide - Assignment Example However, when people from a different country relocate to that society, they find it extremely difficult to adapt to the new culture and such individuals confront many issues that may entail personality conflicts. The author, through her essay, has been able to demonstrate the problems she has encountered in becoming American and it clearly depicts how immigrants feel in an alien land. The society prescribes a high standard on outward appearances, especially in the context of females. Thus, they are forced to harbor certain notions on how a woman should look. The concept of beauty also changes as a person moves from one society to the other. In her essay, Alvarez illustrates this eloquently when she shows the sisters watching the Beauty Pageant. They actively discuss about different contestant, opining who should win and who should not. During all these, they feel themselves intimidated by the notion that they may not ever be able to win the Miss America Pageant because they are not â€Å"American.† Through the description of the inner feelings of the sisters, Alvarez provides her audience a subtle hint that the sisters do not feel â€Å"belonging† to the American culture. Their alienation becomes evident when they think that they will have to change their appearance to â€Å"English, iron and tweeze them out, straighten them, mold them into Made-in -the-USA beauty† (Alvarez Page). Jim Barnes’ poem, â€Å"Return to La Plata, Missouri,† evokes a sense of nostalgia, where the poet recalls the memories of his town, saying goodbye to it. Like many of his other poems this is also focused on the description of a place. The city, like many others around the world, has all the evils, hidden beneath its red sheath that slowly turns brown. At the first reading, a reader may not clearly understand many of the imagery and how the writer connects these to the evils that hide within the dark recesses of cities. However, a close reading makes it clear that

International Management Essay Example | Topics and Well Written Essays - 1750 words - 4

International Management - Essay Example Hence, global ethics are expected to continue to be a very crucial concern for almost all MNCs. Woods claims that roughly 60,000 MNCs are doing business all over the world at present but that most of them are operating in developing countries (Cullen & Parboteeah 126). MNCs have access to massive human, capital, and economic resources, and this access endows influence and authority that restricts the capacity of the governments of developing countries to control these multinationals. In certain instances, these governments are not eager to control because they are taking into consideration the value of foreign investment for their countries (Cullen & Parboteeah 126-7). MNCs are thus being investigated for their capacity to carry out ethical practices when confronted with this kind of power. Besides the possibility of being condemned for unethical practices and sustaining damage in reputation and loss of public support, new studies confirm that doing business in an ethical way has numerous advantages for multinationals. An evaluation of different studies by researchers reveals that responsible and ethical multinationals have greater advantages in numerous parts, including predicted future financial outcome; stock market returns; stock market value; firm market value; and overall financial performance. Ethical MNCs hence experience more favorable financial outcomes (Kaptein 982). Corporate social responsibility (CSR) is a concept that is largely related to corporate/organizational ethics. CSR is defined by Trudel and Cotte (2009) as â€Å"a decision by the company’s management to consider the impact their decisions will have on their customers, employees, suppliers and communities, as well as their shareholders† (as cited in Babetti 4). Cedillo-Torres and colleagues (2012) argued that CSR involves several interrelated aspects rooted in societal, ethical, legal, and

MTEF Reform in Bangladesh Analysis

MTEF Reform in Bangladesh Analysis Chapter 1: Introduction 1.1 Background This dissertation studies the MTEF (Medium Term Expenditure Framework) reform in Bangladesh. The MTEF was introduced in 4 ministries including Ministry of Education from 2005-06, named as MTBF (Medium Term Budgetary Framework). In the following year it included Ministry of Primary and Mass Education and Ministry of Health and Family Welfare. All other ministries will be brought under this framework in near future. The focus of this study is to explore the effect of introducing the MTEF in education and health budgets, explain the difference between the MTEF and traditional budgetary system in the formulation and execution of budget, analyze the effectiveness and efficiency of budgetary spending due to adopting the MTEF in the education and health sectors considering the three outcomes (maintaining fiscal discipline, promoting allocative Efficiency and enhancing operational efficiency) of public expenditure management (PEM) and finally to comment on whether improvements were achieved or not due to adopting the MTEF. This chapter outlines the relevancy of the study, the research questions to be answered in the subsequent chapters, methodology and analytical framework, limitations of the study and finally the presentation structure. 1.2 Rationale of the Study The main objective of formulating a budget under the MTEF is to link the budgetary allocations with governments policies, priorities. This is for ensuring efficient utilisation of limited public resources, which will enhance pro-poor growth and poverty reduction. One of the ‘policy priority triangles set out in countrys Poverty Reduction Strategy Paper (PRSP, 2005) is human development. So, Education and health sectors have been attached to top priority on investment by the Government. 1 According to MTBF (2005-06, p-01), ‘The Medium Term Budgetary Framework (MTBF) is a new budgeting approach generally known as the Medium Term Expenditure Framework (MTEF). Here, no basic difference between MTEF and MTBF has been stated. So, the term ‘MTEF will be used ubiquitously in this dissertation except quoting the references where relevant. These two sectors account for almost 20% of the total government expenditure each year in Bangladesh. The MTEF has been implemented in these two sectors since 2006 and many of the government policy objectives are linked with them. It is necessary to review the performance of the MTEF so that the output could be infused into ongoing works and corrective actions can be taken to planned activities accordingly. Thus, it seeks to investigate the impact of the MTEF on budgetary system of these two sectors. 1.3 Research Questions For this paper, the research questions are: 1. To what extent MTEF led to changesa in the formulation and execution of education and health budgets? 2. Has MTEF improved the effectivenessb and efficiencyc of budgetary expenditure on education and health? a. Mainly three types of changes- institutional, process (procedure) and technical (technological). b. Effectiveness is about how far does the activity (here MTEF) achieve its objective- and the objective itself is greater allocative efficiency. c. Efficiency here means at what cost was that result achieved, i.e. how many additional resources were used up in adopting MTEF (Here it means operational efficiency). 1.4 Broad Methodological Approach The analysis is purely desk- based. Secondary information sourced from review of literatures on the MTEF of different countries and other related articles of OECD, IMF, World Bank. UNICEF, PEFA, ADB, UNDP comprising as assessment and analysis of available documents on the MTEF and related processes. To answer the research questions data of national budget from 2001t o 2010, documents on the MTEF from 2006 to 2010, monthly fiscal report from 2004 to 2008- Finance Division, Ministry of Finance (MoF), Bangladesh Economic Review 2003-2008, IRBD by CPD (Centre for Policy Dialogue) from 2004- 2010, Public Expenditure Review on health- 2007, Bangladesh Bureau of Statistics, Sector wise budgets from Ministry of Education, Ministry of Primary and Mass Education, Ministry of Health and Family Welfare are used. Data from national budgets, BER, MTBF and PER played the key role to answer the research questions. Information was collected from interviewing few relevant staff of the MoF and consulti ng published documents and databases available in the Internet. The analysis is both qualitative and quantitative depending on the availability of the relevant data. 1.4.1 Analytical Framework 1) To answer the first question regarding changes due to adopting MTEF in Bangladesh, three elements will be analyzed institutional change, procedural change and technical change and this analysis will try to differentiate the qualitative changes took place due to adopting MTEF over the traditional budgeting system in relation to those three elements. 2) The MTEF budgets of education and health will be assessed taking into account the three basic elements of PEM (Public Expenditure Management) maintaining fiscal discipline, promoting allocative efficiency and enhancing operational efficiency (Schick, A, 1998) to get the answer of the second question concerning improvement in effectiveness and efficiency of budgetary spending after MTEF. Fiscal discipline, allocative efficiency and operational efficiency are interdependent (DFID, 2001). Allen Schick (1998, p. 2) argued that the lack of fiscal discipline leads to improper resource allocation and operates inefficiency. So, fiscal discipline promotes allocative and operational efficiency. MTEF sought to strengthen those three outcomes. Therefore, the effectiveness and efficiency of budgetary spending is improved when those three basic elements are achieved. The following criteria/ principles will be analysed to reveal the experiences of attaining those three basic elements Source: The above criteria in the table are generated on the basis of the literature of Schick, A (1998), World Bank (1998), DFID guidelines (2001) 1.4.1.1 Criteria setting The aim is to find out some criteria that influences the three objectives of PEM as well as matches with the ‘MTEF objectives of Bangladesh (discussed in chapter- 3..) so that the impact of the MTEF can be assessed. The analytical framework is adapted and it is mainly based on the literature of ‘Schick, A (1998), A Contemporary Approach to Public Expenditure Management, ‘World Bank (1998), Public Expenditure Management Handbook, DFID guidelines (2001) and some other empirical evidences (discussed in chapter- 2). Some other relevant criteria are not examined mainly due to data non- availability of appropriate data. For example, improvement in accountability and transparency relates to operational efficiency is not analysed due to data limitation and relevant information unavailability. A simple cross- section data is presented in tabular form where it is relevant in addressing the research questions. 1.6 Limitations The MTEF is now at its earlier stage in Bangladesh and no formal review or comprehensive assessment has been made on this new budgetary process. Sufficient information is not available and current and reliable data are also unobtainable. So, there is much reliance on government budgetary documents that cannot always be testified by evidences from other sources. 1.7 Presentation Structure Chapter 2 provides literature review on theoretical concept of MTEF, budgetary reforms followed both in developed and developing countries and assessments of the impact of the MTEF in those countries using the analytical framework specified for answering question two. Chapter 3 illustrates MTEF reform in Bangladesh and analysis of the traditional budgetary process and MTEF in view of the changes took place due to adopting MTEF to get the answer of question 1. Chapter 4 focuses on the assessment of impact of MTEF on education budget to get the answer to question-2 Chapter 5 focuses on the assessment of impact of MTEF on health budget to get the answer to question-2 Chapter 6 presents the conclusion where all the research questions are summarized. Chapter 2: Literature Review This chapter aims to explore various criteria/ principles that will be used to judge the performance of the MTEF in line with the three basic indicators of the public expenditure management (PEM). With this end in view, it provides literature review on theoretical concept of the MTEF, the theoretical explanation regarding the relationship between the MTEF and the public expenditure management (PEM). It also examines the empirical studies on the MTEF of different countries to reveal the different criteria/ conditions that were set to assess the role of the MTEF in promoting the efficiency and effectiveness of public expenditure. Finally it brings together some criteria that will be used to develop the analytical framework to assess the impact of the MTEF on education and health budget (the title of the dissertation) in Bangladesh. 2.1 The Theoretical Background 2.1.1 Concept of the MTEF The MTEF (Medium Term Expenditure Framework) is defined as an approach ‘designed specially to link planning, which has a medium term outlook, with the annual budget, and, as a consequence, to link budgetary expenditure more systematically with socially desired outcomes, (ADB, 2002, p-1). On the whole, MTEF integrated policy, planning and budgeting and allows expenditure to be ‘driven by policy priorities and disciplined by budget realities (World Bank, 1998). So, MTEF is a multiyear rolling expenditure under which a realistic projection of revenue receipts and expenditure is prepared over a three to five year period and spending priorities are set with reference to the Governments policy objectives and thus it provides a clear foundation for the annual budget. Under the MTEF, over a three year period, first year estimate is considered as budget, two outer years estimates as indicative figures. In the following year, the MTEF rolls forward and a new forward estimate for an other year is added. After necessary adjustment, the second year forward estimate is considered as budget as it becomes first year for the next MTEF. Figure 2.1: Rolling Principle of the MTEF (Source: ODI, 2002, p- 5) In many countries, the MTEF is implemented at two key levels, at the central government level which is referred to as the ‘top- down approach and at the spending agencies level, referred to as the ‘bottom- up approach (World Bank, 1998, p-40). In the ‘top- down approach, Ministry of Finance identified the ‘resource envelops (which is referred to as the indicative expenditure ceiling) and allocate those to the line ministries in view of their relative need. In the ‘bottom- up approach, line ministries or sectoral agencies formulates and estimates the actual and projected costs of the spending programmes within the spending limit for the medium term by examining the sectoral objectives and activities (Houerou and Taliercio, 2002, p-2). Table 2.1 Seven Stages of the MTEF Source: Adapted;[PEM Handbook (World Bank, 1998a: 47-51) cited in N.Oyugi. L, (2008, p-3, 4) and Houerou and Taliercio, (2002, p-3)] Annexure- 2 2.2 A General Overview of the Empirical Literature Many developed countries like UK, Australia, New Zealand, Austria, Sweden, Germany, USA are practising multi- year budgeting. The MTEF of UK maintains a firm consistency in controlling public expenditure having ‘focused on outcomes and efficient service delivery (HM Treasury, 2007). World Bank, DFID and other Aid agencies influenced many developing and transitional countries to initiate series of reforms (Wyane, 2005). The MTEF is introduced in more than 25 countries in Asia, Africa (e.g., Benin, Cameroon, Burkina Faso, Ghana, Malawi, Rwanda, South Africa, Tanzania, Uganda, Namibia, Kenya, Zambia) Latin America and Eastern Europe. In Asia, MTEF has already been introduced in Nepal, Pakistan and Bangladesh. Almost all the developing countries have 3 years MTEFs except Mozambique (6 years) and South Africa (4 years) (Houerou and Taliercio, 2002). Most of the countries integrated development and non- development expenditure in the MTEF except Guinea and Rwanda (only recurrent budget). In Kenya, Tanzania, South Africa, Uganda, civil society representatives participate in Sector Expenditure Frameworks (SEFs) preparing process (Houerou and Taliercio, 2002). Suriyaarachchi (2004) argued that Nepal has improved in development budget formulation and execution after intro ducing MTEF in Fiscal Year 2002-03. Assessments on the MTEF in many African countries are carried out considering the organizational change and procedural change rather than assessing the progress achieved through implementing the MTEF (Bird, A, 2003; Holmes and Evans, 2003; Jennes. G, 2003; Carlier. K, 2003; Short. J, 2003) 2.3 The MTEF and the public expenditure management (PEM) ADB (2001) suggested that ‘Public expenditure management (PEM) is the latest approach that emphasizes on achieving the desired policy outcomes through public sector budgeting. PEM considered expenditure as an instrument to produce optimal output whereas conventional budgetary process sets focus on spending as an input. PEM emphasizes on three main outcomes in budgetary system. The objectives of PEM are to maintain fiscal discipline, to promote allocative efficiency and to enhance operational efficiency (World Bank, 1998a cited in DFID, 2001, p-8). Allen Schick (1998, p-2) describes three basic elements of PEM as follows: 1. Aggregate fiscal discipline , which usually means that the public spending limit should not exceed the total revenue (spending in accordance with the affordability) and should be ‘sustainable over the medium-term and beyond (ibid, p-2). 2. Allocative efficiency , which refers to the condition that public spending, should be prudent. ‘Expenditure should be based on government priorities and it should be directed to the most beneficial programmes and activities that ultimately increase the effectiveness of the budgetary spending. It means that the allocation is better targeted shifting from ‘lesser to higher priorities and from less to more effective programs (ibid-2). 3. Operational efficiency means getting the best value of public money. Quality of the public services should be reasonable and it should be given at the lowest possible cost (ADB, 2001, p-1). According to Fjeldstad et al. (2004 p.2) cited in N.Oyugi. L, (2008, p- 2), The objectives of MTEF are : to maintain ‘aggregate fiscal discipline to promote ‘resource allocation to strategic priorities (allocative efficiency) to enhance ‘efficient and effective use of resources (operational efficiency) It suggests that there is a close connection between MTEF and PEM objectives. 2.3.1The MTEF and improvement in effectiveness and efficiency of budgetary expenditure ADB suggested that ‘the MTEF is one mechanism through which a PEM system can be operationalzed (2001- issue- 2, p-4). So, the improvement in effectiveness and efficiency of budgetary expenditure depends on to what extent the MTEF is sought to strengthen the PEM objectives. Fiscal discipline, allocative efficiency and operational efficiency are ‘interdependent (DFID, 2001). Allen Schick (1998, p. 2) argued that the lack of fiscal discipline leads to improper resource allocation and operational inefficiency. So, fiscal discipline can promote both allocative and operational efficiency. Fiscal discipline is maintained when implementation of budget ensures that actual expenditure does not exceed the spending limit and even when the increase in spending (% as a share of GDP) is consistent with the increase in revenue each year (Schick, A, 1998, p. 12, 67). So, two criteria- conformity with the spending limit and consistency in the trend of sectoral expenditure influence fiscal discipline. Allocative efficiency means the ability of the government to distribute resources considering the effectiveness of public programmes in accordance with its strategic objectives or policy planning. It is the capacity to reallocate resources from old to new priorities and from less to more effective programmes. Delegation of major allocative responsibility to sectoral ministries also promotes allocative efficiency (ibid, p. 17, 90). So, four criteria- change in sectoral allocation, strategic resource allocationlinked to policy planning, spending in priority areas/ programmes anddevolution of allocative responsibilities to line ministries influence allocative efficiency. MTEF offers greater predictability of fund since it establishes ‘baseline budgets for the upcoming years (while one year budget cannot) and thus improves operational efficiency (ADB, 2001- issue- 2, p-4). World Bank (1998) argues that predictability of funds (assurance to spending agencies as to when and where the resources will be available) is one of the major factors that influence operational efficiency (p- 28). Operational efficiency put emphasis on output and outcomes rather than input (Schick, A, 1998, p. 21). So, two criteria- greater predictability of public funds and progress in achieving output targets influence operational efficiency. 2.3.2 Evidence from Cross-country Studies This is to explore what criteria/ characteristics are set out by different countries to assess the impact of MTEF with respect to three levels of PEM outcomes. However, most of the studies are found to use one or more of the following criteria. Reducing fiscal deficit Since the adoption of the MTEF, Malawi reduced its fiscal deficit from 15% of GDP to 5% in the 1998/ 1999 budgetary- year and a further reduction to 4% in 1999/ 2000. So, it achieved some progress in reducing fiscal deficit (Anipe et al., 1999, p. 15). Adequate information availability In Cambodia, the MTEF was introduced in two ministries (education and health) and while preparing the sectoral expenditure for 2003-2005, health ministry had inadequate information regarding user fees and other payments, which in turn prevented from making a realistic estimation (Dom et al., 2003, p. 30). Above two criteria are concerned with aggregate fiscal discipline. Strategic resource allocation linked to policy, planning In case of Ghana, the MTEF was adopted in 1999; the resources were allocated in line with government development policy documents, e.g. ‘Ghana Vision 2020 (Anipa et al., 1999, p-21). The MTEF in Uganda achieved a considerable success in integrating the PEAP (‘Poverty Eradication Action Plan) within the Budgetary process and expenditure planning is carried out considering PEAP at the central and local government levels (Bird A, 2003). Change in sectoral allocation In Uganda, actual spending increased from 19.8% of total expenditure to 26.9% in 1998/99 (Bevan and Palomba, 2000, p. 18). In Benin, budgetary allocations had increased significantly to the ‘priority sector since 1998. Recurrent budget for education was 27.4% of the total expenditure in 1998 and it increased to 39.5% in 2001 and capital budget was 4.5% of the total expenditure in 1998 and that increased enormously to 40.7%. Allocations towards the health budget have increased from 1.4 percent of GDP in 1998 to 2.3 percent of GDP in 2001 (Carlier K, 2003, p. 23-24). Greater responsibility to line ministries The MTEF in Ghana promoted allocative efficiency as line ministries enjoying ‘greater responsibility for allocating resources to priority activities which ensures effective and efficient use of limited resources (Anipa et al., 1999, p- 7). Improvement in budgetary classification The MTEF in Malawi promotes allocative efficiency as it improved in budgetary classification by adopting activity- based budgeting that reviews the on- going programmes and creates sub- programmes to specify the activities (ibid, p. 12-25). From the above analysis it is evident that three criteria- strategic resource allocation linked to policy planning, change in sectoral allocation, improvement in budgetary classification are relevant to allocative efficiency and greater responsibility to line ministries is concerned with both allocative and operational efficiency (discussed in section 2.1.3). Fund predictability In Malawi, the allocation for health sector was 20.7% of the total development budget for the 1996/1997 fiscal year, but the actual release was only 3.6% of the development expenditure (Oxford Policy Management, 2000, p. 4). Reducing the deviation between budget and actual spending In case of Tanzania, from 1995 to 1998, the average BDI (Budget Deviation Index) was equal to 33% before introducing the MTEF and after the MTEF since 1999, it was reduced to 25% (Houerou and Taliercio, 2002, p. 21). Improvement in accountability and transparency In Namibia, MTEF has improved transparency as the framework explains inputs required for all programmes and expected outcomes. It also increased accountability because public has the access to the information regarding government priorities set in the medium term framework (N Oyugi L, 2008, p-12). The above two criteria are relevant to operational efficiency as discussed earlier. 2.4 Findings The country assessments of the MTEF indicate that all types of criteria/ conditions were not used by any single country to assess the impact of the MTEF. From the above analysis, the following key criteria/ principles can be brought together which appear to be important to examine the MTEF outcomes at three levels- fiscal discipline, allocative and operational efficiency. In the next chapter, the changes due to adopting the MTEF in the education and health budget will be examined. Asian development bank institute, 2005 http://www.adbi.org/files/2005.09.05.cpp.budget.classification.pdf Chapter 3: Changes due to the MTEF in Bangladesh This chapter addresses the first research question of Chapter- 1 which refers to the changes took place because of the MTEF introduced in the education and health budget. For this, it focuses on the budgetary reforms in Bangladesh. Experiences with the introduction of the MTEF are discussed and finally the changes due to adopting the MTEF (the traditional versus the MTEF) have been analysed. 3.1 Why the MTEF in Bangladesh Before the MTEF, budgets were prepared by making arbitrary incremental changes to the preceding years allocation. No strategic planning was present in budgetary process, non- development and development budgets were prepared separately and emphasis was laid on input rather than output (BCAS-2006/09, p. 53). Therefore, to enhance the credibility of the budget, to face the strategies set out in the PRSP with the macroeconomic framework and to ‘create a more disciplined, dynamic, efficient and modern public financial management system (MTBF-05/06, p. i), the MTEF was introduced. 3.2 Budgetary reforms and the MTEF in Bangladesh Bangladesh is a densely populated developing country which has a less public spending as a share of GDP (Socio- economic indicators are shown in Appendix- 1 ). For the effective and efficient use of scant resources, important reforms have been carried out in public financial management since 1990s. According to World Bank, ‘Bangladesh re-emerged as a democracy, successfully restarted reforms on critical fronts while ensuring sound macroeconomic and fiscal management (BCAS, 2006/09, p-9). A committee on Reforms in budgeting and Expenditure Control (CORBEC) was formed in March 1990 and this committee identified a number of problems including budgeting procedure, budget classification, budget presentation, separate non- development (recurrent) and development (investment) budgets preparation, emphasis laid on the inputs rather than outputs, etc. It was also difficult to identify the flow of funds as non- development and development budgets used separate classification systems and that was not computerized. To implement the recommendation of CORBEC, RIBEC (Reform in Budgeting and Expenditure Control) was formed with the financial suppo rt from the DFID (Department for International Development). A detailed operational unit wise and economic code wise classification chart was prepared and published, financial rules and reporting systems were upgraded and large number of Government officials were trained through the RIBEC from Ph MTEF Reform in Bangladesh Analysis MTEF Reform in Bangladesh Analysis Chapter 1: Introduction 1.1 Background This dissertation studies the MTEF (Medium Term Expenditure Framework) reform in Bangladesh. The MTEF was introduced in 4 ministries including Ministry of Education from 2005-06, named as MTBF (Medium Term Budgetary Framework). In the following year it included Ministry of Primary and Mass Education and Ministry of Health and Family Welfare. All other ministries will be brought under this framework in near future. The focus of this study is to explore the effect of introducing the MTEF in education and health budgets, explain the difference between the MTEF and traditional budgetary system in the formulation and execution of budget, analyze the effectiveness and efficiency of budgetary spending due to adopting the MTEF in the education and health sectors considering the three outcomes (maintaining fiscal discipline, promoting allocative Efficiency and enhancing operational efficiency) of public expenditure management (PEM) and finally to comment on whether improvements were achieved or not due to adopting the MTEF. This chapter outlines the relevancy of the study, the research questions to be answered in the subsequent chapters, methodology and analytical framework, limitations of the study and finally the presentation structure. 1.2 Rationale of the Study The main objective of formulating a budget under the MTEF is to link the budgetary allocations with governments policies, priorities. This is for ensuring efficient utilisation of limited public resources, which will enhance pro-poor growth and poverty reduction. One of the ‘policy priority triangles set out in countrys Poverty Reduction Strategy Paper (PRSP, 2005) is human development. So, Education and health sectors have been attached to top priority on investment by the Government. 1 According to MTBF (2005-06, p-01), ‘The Medium Term Budgetary Framework (MTBF) is a new budgeting approach generally known as the Medium Term Expenditure Framework (MTEF). Here, no basic difference between MTEF and MTBF has been stated. So, the term ‘MTEF will be used ubiquitously in this dissertation except quoting the references where relevant. These two sectors account for almost 20% of the total government expenditure each year in Bangladesh. The MTEF has been implemented in these two sectors since 2006 and many of the government policy objectives are linked with them. It is necessary to review the performance of the MTEF so that the output could be infused into ongoing works and corrective actions can be taken to planned activities accordingly. Thus, it seeks to investigate the impact of the MTEF on budgetary system of these two sectors. 1.3 Research Questions For this paper, the research questions are: 1. To what extent MTEF led to changesa in the formulation and execution of education and health budgets? 2. Has MTEF improved the effectivenessb and efficiencyc of budgetary expenditure on education and health? a. Mainly three types of changes- institutional, process (procedure) and technical (technological). b. Effectiveness is about how far does the activity (here MTEF) achieve its objective- and the objective itself is greater allocative efficiency. c. Efficiency here means at what cost was that result achieved, i.e. how many additional resources were used up in adopting MTEF (Here it means operational efficiency). 1.4 Broad Methodological Approach The analysis is purely desk- based. Secondary information sourced from review of literatures on the MTEF of different countries and other related articles of OECD, IMF, World Bank. UNICEF, PEFA, ADB, UNDP comprising as assessment and analysis of available documents on the MTEF and related processes. To answer the research questions data of national budget from 2001t o 2010, documents on the MTEF from 2006 to 2010, monthly fiscal report from 2004 to 2008- Finance Division, Ministry of Finance (MoF), Bangladesh Economic Review 2003-2008, IRBD by CPD (Centre for Policy Dialogue) from 2004- 2010, Public Expenditure Review on health- 2007, Bangladesh Bureau of Statistics, Sector wise budgets from Ministry of Education, Ministry of Primary and Mass Education, Ministry of Health and Family Welfare are used. Data from national budgets, BER, MTBF and PER played the key role to answer the research questions. Information was collected from interviewing few relevant staff of the MoF and consulti ng published documents and databases available in the Internet. The analysis is both qualitative and quantitative depending on the availability of the relevant data. 1.4.1 Analytical Framework 1) To answer the first question regarding changes due to adopting MTEF in Bangladesh, three elements will be analyzed institutional change, procedural change and technical change and this analysis will try to differentiate the qualitative changes took place due to adopting MTEF over the traditional budgeting system in relation to those three elements. 2) The MTEF budgets of education and health will be assessed taking into account the three basic elements of PEM (Public Expenditure Management) maintaining fiscal discipline, promoting allocative efficiency and enhancing operational efficiency (Schick, A, 1998) to get the answer of the second question concerning improvement in effectiveness and efficiency of budgetary spending after MTEF. Fiscal discipline, allocative efficiency and operational efficiency are interdependent (DFID, 2001). Allen Schick (1998, p. 2) argued that the lack of fiscal discipline leads to improper resource allocation and operates inefficiency. So, fiscal discipline promotes allocative and operational efficiency. MTEF sought to strengthen those three outcomes. Therefore, the effectiveness and efficiency of budgetary spending is improved when those three basic elements are achieved. The following criteria/ principles will be analysed to reveal the experiences of attaining those three basic elements Source: The above criteria in the table are generated on the basis of the literature of Schick, A (1998), World Bank (1998), DFID guidelines (2001) 1.4.1.1 Criteria setting The aim is to find out some criteria that influences the three objectives of PEM as well as matches with the ‘MTEF objectives of Bangladesh (discussed in chapter- 3..) so that the impact of the MTEF can be assessed. The analytical framework is adapted and it is mainly based on the literature of ‘Schick, A (1998), A Contemporary Approach to Public Expenditure Management, ‘World Bank (1998), Public Expenditure Management Handbook, DFID guidelines (2001) and some other empirical evidences (discussed in chapter- 2). Some other relevant criteria are not examined mainly due to data non- availability of appropriate data. For example, improvement in accountability and transparency relates to operational efficiency is not analysed due to data limitation and relevant information unavailability. A simple cross- section data is presented in tabular form where it is relevant in addressing the research questions. 1.6 Limitations The MTEF is now at its earlier stage in Bangladesh and no formal review or comprehensive assessment has been made on this new budgetary process. Sufficient information is not available and current and reliable data are also unobtainable. So, there is much reliance on government budgetary documents that cannot always be testified by evidences from other sources. 1.7 Presentation Structure Chapter 2 provides literature review on theoretical concept of MTEF, budgetary reforms followed both in developed and developing countries and assessments of the impact of the MTEF in those countries using the analytical framework specified for answering question two. Chapter 3 illustrates MTEF reform in Bangladesh and analysis of the traditional budgetary process and MTEF in view of the changes took place due to adopting MTEF to get the answer of question 1. Chapter 4 focuses on the assessment of impact of MTEF on education budget to get the answer to question-2 Chapter 5 focuses on the assessment of impact of MTEF on health budget to get the answer to question-2 Chapter 6 presents the conclusion where all the research questions are summarized. Chapter 2: Literature Review This chapter aims to explore various criteria/ principles that will be used to judge the performance of the MTEF in line with the three basic indicators of the public expenditure management (PEM). With this end in view, it provides literature review on theoretical concept of the MTEF, the theoretical explanation regarding the relationship between the MTEF and the public expenditure management (PEM). It also examines the empirical studies on the MTEF of different countries to reveal the different criteria/ conditions that were set to assess the role of the MTEF in promoting the efficiency and effectiveness of public expenditure. Finally it brings together some criteria that will be used to develop the analytical framework to assess the impact of the MTEF on education and health budget (the title of the dissertation) in Bangladesh. 2.1 The Theoretical Background 2.1.1 Concept of the MTEF The MTEF (Medium Term Expenditure Framework) is defined as an approach ‘designed specially to link planning, which has a medium term outlook, with the annual budget, and, as a consequence, to link budgetary expenditure more systematically with socially desired outcomes, (ADB, 2002, p-1). On the whole, MTEF integrated policy, planning and budgeting and allows expenditure to be ‘driven by policy priorities and disciplined by budget realities (World Bank, 1998). So, MTEF is a multiyear rolling expenditure under which a realistic projection of revenue receipts and expenditure is prepared over a three to five year period and spending priorities are set with reference to the Governments policy objectives and thus it provides a clear foundation for the annual budget. Under the MTEF, over a three year period, first year estimate is considered as budget, two outer years estimates as indicative figures. In the following year, the MTEF rolls forward and a new forward estimate for an other year is added. After necessary adjustment, the second year forward estimate is considered as budget as it becomes first year for the next MTEF. Figure 2.1: Rolling Principle of the MTEF (Source: ODI, 2002, p- 5) In many countries, the MTEF is implemented at two key levels, at the central government level which is referred to as the ‘top- down approach and at the spending agencies level, referred to as the ‘bottom- up approach (World Bank, 1998, p-40). In the ‘top- down approach, Ministry of Finance identified the ‘resource envelops (which is referred to as the indicative expenditure ceiling) and allocate those to the line ministries in view of their relative need. In the ‘bottom- up approach, line ministries or sectoral agencies formulates and estimates the actual and projected costs of the spending programmes within the spending limit for the medium term by examining the sectoral objectives and activities (Houerou and Taliercio, 2002, p-2). Table 2.1 Seven Stages of the MTEF Source: Adapted;[PEM Handbook (World Bank, 1998a: 47-51) cited in N.Oyugi. L, (2008, p-3, 4) and Houerou and Taliercio, (2002, p-3)] Annexure- 2 2.2 A General Overview of the Empirical Literature Many developed countries like UK, Australia, New Zealand, Austria, Sweden, Germany, USA are practising multi- year budgeting. The MTEF of UK maintains a firm consistency in controlling public expenditure having ‘focused on outcomes and efficient service delivery (HM Treasury, 2007). World Bank, DFID and other Aid agencies influenced many developing and transitional countries to initiate series of reforms (Wyane, 2005). The MTEF is introduced in more than 25 countries in Asia, Africa (e.g., Benin, Cameroon, Burkina Faso, Ghana, Malawi, Rwanda, South Africa, Tanzania, Uganda, Namibia, Kenya, Zambia) Latin America and Eastern Europe. In Asia, MTEF has already been introduced in Nepal, Pakistan and Bangladesh. Almost all the developing countries have 3 years MTEFs except Mozambique (6 years) and South Africa (4 years) (Houerou and Taliercio, 2002). Most of the countries integrated development and non- development expenditure in the MTEF except Guinea and Rwanda (only recurrent budget). In Kenya, Tanzania, South Africa, Uganda, civil society representatives participate in Sector Expenditure Frameworks (SEFs) preparing process (Houerou and Taliercio, 2002). Suriyaarachchi (2004) argued that Nepal has improved in development budget formulation and execution after intro ducing MTEF in Fiscal Year 2002-03. Assessments on the MTEF in many African countries are carried out considering the organizational change and procedural change rather than assessing the progress achieved through implementing the MTEF (Bird, A, 2003; Holmes and Evans, 2003; Jennes. G, 2003; Carlier. K, 2003; Short. J, 2003) 2.3 The MTEF and the public expenditure management (PEM) ADB (2001) suggested that ‘Public expenditure management (PEM) is the latest approach that emphasizes on achieving the desired policy outcomes through public sector budgeting. PEM considered expenditure as an instrument to produce optimal output whereas conventional budgetary process sets focus on spending as an input. PEM emphasizes on three main outcomes in budgetary system. The objectives of PEM are to maintain fiscal discipline, to promote allocative efficiency and to enhance operational efficiency (World Bank, 1998a cited in DFID, 2001, p-8). Allen Schick (1998, p-2) describes three basic elements of PEM as follows: 1. Aggregate fiscal discipline , which usually means that the public spending limit should not exceed the total revenue (spending in accordance with the affordability) and should be ‘sustainable over the medium-term and beyond (ibid, p-2). 2. Allocative efficiency , which refers to the condition that public spending, should be prudent. ‘Expenditure should be based on government priorities and it should be directed to the most beneficial programmes and activities that ultimately increase the effectiveness of the budgetary spending. It means that the allocation is better targeted shifting from ‘lesser to higher priorities and from less to more effective programs (ibid-2). 3. Operational efficiency means getting the best value of public money. Quality of the public services should be reasonable and it should be given at the lowest possible cost (ADB, 2001, p-1). According to Fjeldstad et al. (2004 p.2) cited in N.Oyugi. L, (2008, p- 2), The objectives of MTEF are : to maintain ‘aggregate fiscal discipline to promote ‘resource allocation to strategic priorities (allocative efficiency) to enhance ‘efficient and effective use of resources (operational efficiency) It suggests that there is a close connection between MTEF and PEM objectives. 2.3.1The MTEF and improvement in effectiveness and efficiency of budgetary expenditure ADB suggested that ‘the MTEF is one mechanism through which a PEM system can be operationalzed (2001- issue- 2, p-4). So, the improvement in effectiveness and efficiency of budgetary expenditure depends on to what extent the MTEF is sought to strengthen the PEM objectives. Fiscal discipline, allocative efficiency and operational efficiency are ‘interdependent (DFID, 2001). Allen Schick (1998, p. 2) argued that the lack of fiscal discipline leads to improper resource allocation and operational inefficiency. So, fiscal discipline can promote both allocative and operational efficiency. Fiscal discipline is maintained when implementation of budget ensures that actual expenditure does not exceed the spending limit and even when the increase in spending (% as a share of GDP) is consistent with the increase in revenue each year (Schick, A, 1998, p. 12, 67). So, two criteria- conformity with the spending limit and consistency in the trend of sectoral expenditure influence fiscal discipline. Allocative efficiency means the ability of the government to distribute resources considering the effectiveness of public programmes in accordance with its strategic objectives or policy planning. It is the capacity to reallocate resources from old to new priorities and from less to more effective programmes. Delegation of major allocative responsibility to sectoral ministries also promotes allocative efficiency (ibid, p. 17, 90). So, four criteria- change in sectoral allocation, strategic resource allocationlinked to policy planning, spending in priority areas/ programmes anddevolution of allocative responsibilities to line ministries influence allocative efficiency. MTEF offers greater predictability of fund since it establishes ‘baseline budgets for the upcoming years (while one year budget cannot) and thus improves operational efficiency (ADB, 2001- issue- 2, p-4). World Bank (1998) argues that predictability of funds (assurance to spending agencies as to when and where the resources will be available) is one of the major factors that influence operational efficiency (p- 28). Operational efficiency put emphasis on output and outcomes rather than input (Schick, A, 1998, p. 21). So, two criteria- greater predictability of public funds and progress in achieving output targets influence operational efficiency. 2.3.2 Evidence from Cross-country Studies This is to explore what criteria/ characteristics are set out by different countries to assess the impact of MTEF with respect to three levels of PEM outcomes. However, most of the studies are found to use one or more of the following criteria. Reducing fiscal deficit Since the adoption of the MTEF, Malawi reduced its fiscal deficit from 15% of GDP to 5% in the 1998/ 1999 budgetary- year and a further reduction to 4% in 1999/ 2000. So, it achieved some progress in reducing fiscal deficit (Anipe et al., 1999, p. 15). Adequate information availability In Cambodia, the MTEF was introduced in two ministries (education and health) and while preparing the sectoral expenditure for 2003-2005, health ministry had inadequate information regarding user fees and other payments, which in turn prevented from making a realistic estimation (Dom et al., 2003, p. 30). Above two criteria are concerned with aggregate fiscal discipline. Strategic resource allocation linked to policy, planning In case of Ghana, the MTEF was adopted in 1999; the resources were allocated in line with government development policy documents, e.g. ‘Ghana Vision 2020 (Anipa et al., 1999, p-21). The MTEF in Uganda achieved a considerable success in integrating the PEAP (‘Poverty Eradication Action Plan) within the Budgetary process and expenditure planning is carried out considering PEAP at the central and local government levels (Bird A, 2003). Change in sectoral allocation In Uganda, actual spending increased from 19.8% of total expenditure to 26.9% in 1998/99 (Bevan and Palomba, 2000, p. 18). In Benin, budgetary allocations had increased significantly to the ‘priority sector since 1998. Recurrent budget for education was 27.4% of the total expenditure in 1998 and it increased to 39.5% in 2001 and capital budget was 4.5% of the total expenditure in 1998 and that increased enormously to 40.7%. Allocations towards the health budget have increased from 1.4 percent of GDP in 1998 to 2.3 percent of GDP in 2001 (Carlier K, 2003, p. 23-24). Greater responsibility to line ministries The MTEF in Ghana promoted allocative efficiency as line ministries enjoying ‘greater responsibility for allocating resources to priority activities which ensures effective and efficient use of limited resources (Anipa et al., 1999, p- 7). Improvement in budgetary classification The MTEF in Malawi promotes allocative efficiency as it improved in budgetary classification by adopting activity- based budgeting that reviews the on- going programmes and creates sub- programmes to specify the activities (ibid, p. 12-25). From the above analysis it is evident that three criteria- strategic resource allocation linked to policy planning, change in sectoral allocation, improvement in budgetary classification are relevant to allocative efficiency and greater responsibility to line ministries is concerned with both allocative and operational efficiency (discussed in section 2.1.3). Fund predictability In Malawi, the allocation for health sector was 20.7% of the total development budget for the 1996/1997 fiscal year, but the actual release was only 3.6% of the development expenditure (Oxford Policy Management, 2000, p. 4). Reducing the deviation between budget and actual spending In case of Tanzania, from 1995 to 1998, the average BDI (Budget Deviation Index) was equal to 33% before introducing the MTEF and after the MTEF since 1999, it was reduced to 25% (Houerou and Taliercio, 2002, p. 21). Improvement in accountability and transparency In Namibia, MTEF has improved transparency as the framework explains inputs required for all programmes and expected outcomes. It also increased accountability because public has the access to the information regarding government priorities set in the medium term framework (N Oyugi L, 2008, p-12). The above two criteria are relevant to operational efficiency as discussed earlier. 2.4 Findings The country assessments of the MTEF indicate that all types of criteria/ conditions were not used by any single country to assess the impact of the MTEF. From the above analysis, the following key criteria/ principles can be brought together which appear to be important to examine the MTEF outcomes at three levels- fiscal discipline, allocative and operational efficiency. In the next chapter, the changes due to adopting the MTEF in the education and health budget will be examined. Asian development bank institute, 2005 http://www.adbi.org/files/2005.09.05.cpp.budget.classification.pdf Chapter 3: Changes due to the MTEF in Bangladesh This chapter addresses the first research question of Chapter- 1 which refers to the changes took place because of the MTEF introduced in the education and health budget. For this, it focuses on the budgetary reforms in Bangladesh. Experiences with the introduction of the MTEF are discussed and finally the changes due to adopting the MTEF (the traditional versus the MTEF) have been analysed. 3.1 Why the MTEF in Bangladesh Before the MTEF, budgets were prepared by making arbitrary incremental changes to the preceding years allocation. No strategic planning was present in budgetary process, non- development and development budgets were prepared separately and emphasis was laid on input rather than output (BCAS-2006/09, p. 53). Therefore, to enhance the credibility of the budget, to face the strategies set out in the PRSP with the macroeconomic framework and to ‘create a more disciplined, dynamic, efficient and modern public financial management system (MTBF-05/06, p. i), the MTEF was introduced. 3.2 Budgetary reforms and the MTEF in Bangladesh Bangladesh is a densely populated developing country which has a less public spending as a share of GDP (Socio- economic indicators are shown in Appendix- 1 ). For the effective and efficient use of scant resources, important reforms have been carried out in public financial management since 1990s. According to World Bank, ‘Bangladesh re-emerged as a democracy, successfully restarted reforms on critical fronts while ensuring sound macroeconomic and fiscal management (BCAS, 2006/09, p-9). A committee on Reforms in budgeting and Expenditure Control (CORBEC) was formed in March 1990 and this committee identified a number of problems including budgeting procedure, budget classification, budget presentation, separate non- development (recurrent) and development (investment) budgets preparation, emphasis laid on the inputs rather than outputs, etc. It was also difficult to identify the flow of funds as non- development and development budgets used separate classification systems and that was not computerized. To implement the recommendation of CORBEC, RIBEC (Reform in Budgeting and Expenditure Control) was formed with the financial suppo rt from the DFID (Department for International Development). A detailed operational unit wise and economic code wise classification chart was prepared and published, financial rules and reporting systems were upgraded and large number of Government officials were trained through the RIBEC from Ph

Atomic Bomb In World War 2 :: essays research papers

Atomic Bomb in World War 2 During World War II the United States government launched a $2 billion project. This project, known as the Manhattan Project, was an effort to produce an atomic bomb. This project was taken on by a group atomic scientists from all over the world. The first atomic bomb was not tested at all. It was dropped on Hiroshima, Japan on August 6, 1945 killing over 80,000 people and almost completely leveling the entire city. It destroyed more than 4 square miles, or 60% of the city. The flash of the blast was so intense it discolored the pavement and left imprints on the ground cast by the shadows of building and people. By studying these shadows scientists pinpointed the exact detonation point of the bomb.   Ã‚  Ã‚  Ã‚  Ã‚   The second atomic bomb was dropped just three days later on Nagasaki, Japan. 1/3 of the city was destroyed and 66,000 people were reported killed or injured. A memorial now marks the spot where the bomb exploded.   Ã‚  Ã‚  Ã‚  Ã‚   During the initial blast the A-bomb released about 85% of its energy as intense heat followed by a supersonic shock wave that is felt as a highly destructive high pressure air blast, which can easily demolish tall buildings, not to mention people. After the initial blast radiation covers the area, causing people, animals, and structures to practically disintegrate. Even years afterwards people were still dying and having health problems related to the radiation they were exposed to long before.  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   There were many people that were strongly opposed to the using of nuclear weapons on Japan. But invading the is land instead of bombing would have taken perhaps 1 million us soldiers lives.   Ã‚  Ã‚  Ã‚  Ã‚   After 1945 the US made thousand of atomic bombs and a wide range of small size nuclear weapons like, land mines, missiles, and grenades. By 1965 the larger countries of the world had also developed atomic weapons.

Ab105 Organizational Behavior Critical Thinking

AB105 Organizational Behavior Critical Thinking The Management of Organizational Justice By Russell Cropanzano, David E. Bowen, and Stephen W. Gilliland Summary of the key issues This paper has addressed the organizational justice from various aspects and provided recommendations to enhance the fairness in the managerial activities. Firstly, it has discussed the importance of justice in workgroup from its long-range benefits, social and ethical considerations. Secondly, the authors analyzed the three components of organizational justice, namely distributive, procedural and interactional justice in details to highlight the differences between the three in business activities. Next, the paper summarized the influences of organizational justice and these include enhanced trust and commitment, improved job performance, more helpful organizational citizenship behavior, as well as greater customer satisfaction and loyalty. Lastly, after identifying the critical significance of organizational justice in building a company’s identity, recommendations on how to enhance the fairness in managerial activities are proposed. The authors had cited examples from several past studies and discussed from five angles which are hiring, performance appraisal, reward systems, conflict management and downsizing. Other Theoretical Perspectives on Organizational Justice This paper has mentioned the equity theory which is one of the earliest theories of justice brought by Aristotle. This theory emphasizes that people should be paid in proportion to their contributions. Nevertheless, equity theory focuses more on the distributive justice. Through careful research, there are other perspectives and positions on this issue. Fairness heuristic theory Fairness heuristic theory is concerned with how people react to outcomes of their authorities, and makes some predictions concerning the relationship between perceived fairness of procedures, perceived fairness of outcomes and acceptance of outcomes. This theory highlighted that employees would make decisions about others’ trustworthiness. It also discussed whether one can avoid exploitation by using available information. Uncertainty management theory Uncertainty management theory assumed that people manage uncertainty by using fairness; for instance, receiving information on the reliability of an authority figure may reduce uncertainty about unjust treatment in the future and alleviate doubt about the outcome of a possible figure. Uncertainty theory has explained why people care about justice and how they form justice judgment. This theory has relevant implications as information on managerial decisions should be provided to gain the trust from the employees to enhance procedural justice. Group engagement theory This model explains why and how procedural justice shapes cooperation in groups, organizations and societies. It has established a link between justice and corporation via its several hypotheses, such as the importance of procedures in shaping one’s social identity within a group, and the impact of this social identity on his attitudes, values and behaviors. Group engagement theory has provided insights in organizational justice as managers should treat people fairly to win their corporation. Evidence Assessment In general, the evidence provided in this paper is reliable and well-established. The key issues of the article such as importance of organizational behavior and recommendations on fairness workplace enhancement are thoroughly – discussed. The authors had researched over a wide pool of studies across a time span of 20 years, ensuring the relevance, accuracy and sufficiency of the data. Nonetheless, there are some minor limitations. First of all, little evidence was demonstrated to support the discussion on prescriptive and subjective justice, with mere definition of the two, which in turn affects the completeness of the analysis on organizational justice management. Secondly, the authors mentioned about the external equity in affecting reward system, but no proof was offered to support the claim on the influence on the disparity of salaries from the external marketplace. Lastly, although this paper has detailed coverage on the improved employee organizational behavior by establishing organizational justice, it only focuses on the procedural justice and this coverage is insufficient in my viewpoint. Other research suggest that all the three types of organizational justice have direct relationships on enhancing citizenship behavior as â€Å"trust appears to be an important mediating variable (Konovsky and Pugh, 1994). Organizational justice enhances employee trust, which in turn stimulates the display of citizenship behavior. † Assumption Analysis Several assumptions are identified in the analysis of this paper. This paper assumes that self – interest motives favor equity and people across different age groups, genders, races and education levels will perceive justice similarly (which might not be necessarily valid). Another underlying assumption in the managerial activities is that decision makers will treat the employees with genuineness while undertaking the recommended measures, because the absence of the sincerity will make the employees feel disrespected and manipulated. The influence of different contexts plays a key role in organizational justice as it will affect one’s justice perceptions. Out of all the variables, gender and culture are the main factors. Studies have shown that male’s major concern in reward allocation was protecting their own interests while females’ interests lie on maintaining the welfare of all group members. Furthermore, in a society with emphasis on collectivism, members emphasized more on particularistic principle of need or social status distribution instead of equity, as compared to societies based on individualism. Conclusions, Implications and Consequences This article has provided a detailed understanding of organizational justice. In conclusion, injustice in an organization will create problems, leading to inefficiency and unproductivity while justice acts will provide excellent business opportunities and maintain respect and trust within organizations. Therefore, it is advisable to put in efforts in improving distributive, procedural and interactional justice simultaneously in managerial activities. Furthermore, managers could also apply different organizational justice measures according to employees’ various justice perceptions which vary with genders and cultures, in order to reap the maximum benefits from exercising organizational justice in a workplace. (Word count: 1019 words)

Whose or Whos 3 Tips for Remembering the Difference

Whose or Who's 3 Tips for Remembering the Difference SAT / ACT Prep Online Guides and Tips Who’s and whose both come from the pronoun who. While both words sound the same, they have very different meanings. These homophones can be tricky for even the most seasoned writers. In this article, we’ll discuss whose vs who’s, explain when to use whose or who’s, and give you tricks for remembering proper usage. Whose vs Who’s: What’s the Difference? To start, let’s define whose and who’s. Whose is a possessive pronoun that you should use when you’re asking or telling whom something belongs to. Who’s is a contraction made up of the words â€Å"who† and â€Å"is† or â€Å"who† and â€Å"has†. The Roots of Whose vs Who’s: Who and Whom The key to using â€Å"whose† vs â€Å"who’s† correctly is to understand the word at the root of each. When you learn the pronoun that forms the basis for â€Å"whose† and â€Å"who’s,† you’ll also develop a better understanding of how each word functions in a sentence. â€Å"Who† is one pronoun at the root of the difference between â€Å"whose† and â€Å"who’s.† â€Å"Who† is used as the subject of a sentence or clause. You’ll use â€Å"who† when asking a question about which person did something or when you’re describing a person. For example: Who put the pizza here? Who owns that dog? Hayley, who owns a cat, often has cat hair all over her clothes. â€Å"Whom† is the other word at the center of the â€Å"whose or who’s† conundrum. "Whom" is an object pronoun. An object pronoun is a word like â€Å"him,† â€Å"her,† or â€Å"them†. An object pronoun is a type of pronoun that’s used as a grammatical object, such as object of a verb or the object of a preposition. For example: Whom does she love? To whom was the teacher talking? With whom was she walking? In these examples, â€Å"whom† is the object, not the subject. Whose or Who’s? Now we know that whose and who’s come from whom and who. But when do you use each version? Who’s "Who’s" is a contraction made up of either â€Å"who+is† or â€Å"who+has†. The apostrophe in â€Å"who’s† stands in for the missing letters of â€Å"who+is† or â€Å"who+has.† You use â€Å"who’s† when you would otherwise be saying â€Å"who is† or â€Å"who has†. For instance, â€Å"Who is going to the party?† can become â€Å"Who’s going to the party?† Here are other examples of when you’d use â€Å"who’s†: Who’s coming to dinner tonight? Who’s got a better idea? Who’s excited for the new Avengers movie? Whose While â€Å"who’s† comes from â€Å"who†, â€Å"whose† is related to â€Å"whom.† Whose is a possessive pronoun that you used in questions where you’re asking about who owns something. For instance, â€Å"Whose puppy is this?† is another way of saying, â€Å"To whom does this puppy belong?† Here are some examples of when you’d use â€Å"whose†: Whose car alarm is going off? Whose house are we going to? Whose shoes are these? Tricks For Remembering Whose vs Who’s It might seem simple to remember the difference between whose or who’s when reading this article, but how will you remember when you’re off on your own? These tricks can help. #1: Say â€Å"Who Is† or â€Å"Who Has† One way to figure out whether you should use â€Å"who’s† or â€Å"whose† is to say â€Å"who is† out loud to yourself as you read or write. If that makes sense in the sentence, you should use who’s. If it doesn’t, you should use whose. #2: Look at What Follows Remember, whose is possessive. That means that whose is normally followed by a noun. If the sentence has a noun immediately after the whose or who’s, you should use whose. If there’s no noun or an article, use who’s. #3: Am I Using a Contraction? â€Å"Who’s† is a contraction while â€Å"whose† is not. All contractions use apostrophes to replace the missing letters formed by joining together words. If the word you’re writing is a contraction, it’s â€Å"who’s.† If the word isn’t a contraction, it’s â€Å"whose.† Whose or Who’s Examples Let’s take a look at some examples of when to use whose or who’s. Correct Usage of â€Å"Whose† in a Sentence Do you know whose car that is? Whose backpack is this? Whose line is it anyway? Correct Usage of â€Å"Who’s† in a Sentence Who’s excited for the holiday season? Do you know who’s going to the game? Who’s got the takeout menu? Key Takeaways: Whose vs. Who's Who’s is a contraction of â€Å"who + is† or â€Å"who + has†. Whose is another way of saying â€Å"belonging to whom†. What's Next? Reading The Great Gatsby for class or even just for fun?Then you'll definitely want to check out our expert guides on the biggest themes in this classic book, from love and relationships to money and materialism. Got questions about Arthur Miller'sThe Crucible? Readour in-depth articles to learn about the most important themes in this playand geta complete rundown of all the characters. For more information on your favorite works of literature, take a look at our collection of high-quality book guides!

External and Internal Factors Affecting McDonalds †Management Theory Paper

External and Internal Factors Affecting McDonalds – Management Theory Paper Free Online Research Papers External and Internal Factors Affecting McDonalds Management Theory Paper The purpose of this paper is to discuss external and internal factors affecting McDonald’s management functions. This will be accomplished by explaining how McDonald’s deals with each of the external and internal factors. There were three factors that were chosen to outline the success of McDonald’s corporation. The first factor is globalization, which is define as closer contact between different parts of the world, with increasing possibilities of personal exchange, mutual understanding and friendship between world citizens. Diversity, the difference among people and cultures, is the second factor discussed in the paper. The final factor is ethics, which can be defined as a set of principles of right conduct. This paper explains how the McDonald Corporations uses the factors to conduct business around the world. In today’s society, corporations and enterprises are expanding their businesses in the global markets. Globalization is necessary for success and survival in the worldwide market; however, global competition is not easy (Bateman Scott, 2004). By the end of the twentieth century, the list of Fortune 500 companies was no longer only United States corporations due to an increase in international companies joining the list (Global Capitalism, 2005). As a leading food service retailer, McDonald’s joins those corporations with restaurants in 119 countries (McDonald’s, 2004). Important strategic decisions are a key factor to their success with consideration for both internal and external factors. When considering the foreign market, companies need to consider there are risks. There must be local marketing to appeal to the local consumers and also to build relationships and trust (Bateman Scott, 2004). Therefore, the strategic planning for marketing has to be effective . McDonald’s caters its menu in other countries to the cultures of the regions. For example, in India, the non-vegetarian menu includes chicken and fish items only (Welcome, n.d.). Beef is not on the menu in India because are considered sacred. Global marketing decisions are no different than those made domestically but the decisions are unique to each country (Sister Sister, 2005). Furthermore, operating on a global scale allows a company’s employees to experience working in different cultural environments. This is a good marketing strategy for recruiting employees. McDonald’s has a global core curriculum for its restaurant management (McDonald’s, 2004). Paula Doherty, a general manager states, â€Å"I’ve had incredible experience in different countries and†¦cultures†¦as a trainee manager – from Poland to Israel to the Philippines and more. Doing the job successfully has given me a real sense of achievement† (mcdonalds.co. uk/?f=y). This business strategy speaks to their commitment to a diverse workforce. McDonald’s commitment to diversity is established on the foundational belief that diversity is not just a moral and ethical issue, but also a business issue (McDonald’s, 2005). Due to the global expanse of McDonald’s business, diversity has become an integral part of the internal company culture. McDonald’s has over 30,000 restaurants around the world, which means franchise owner/operators, employees, and customers represent just about every culture, religion or ethnicity on earth. In addition, McDonald’s promotes the use of local suppliers and based on their policies of diversity, expects and retains suppliers that have a similar diversity culture. Knowing and understanding the local customs and traditions of the communities where McDonald’s has established businesses, integrating people from these communities into the company, and adapting locally to the tastes and cuisines of the community, has made McDonald’s the leader in their in dustry. In the United States alone, McDonald’s has won numerous awards and received national recognition for diversity. According to McDonald’s website, www.mcdonlads.com, awards include; PUSH-Excel Corporate Partner Award, Corporate Achievement and Image Award, Nullities Corporate Award, Corporate Vision Award, and the Circle of Inclusion Award. These awards and recognitions are not the result of a surface attempt to appease the critics. They are the result of McDonald’s embracing and integrating diversity into their company ethos as an asset and an ally. McDonald’s realizes that having diversity as an asset greatly enhances the profitability of the company. Diversity is a direct reflection of a company’s interpersonal relationships. These relationships, if positive, result in a rewarding venture. Conversely, if the relationships are negative, the company’s morale declines and if not addressed, leads to the deterioration of the company. This deterioration directly impacts the company’s income and the community’s acceptance of the business. However, McDonald’s leadership encourages diversity through their policies and programs. McDonald’s proven success with leveraging the advantages of diversity can be attributed to their core value of ethics. McDonald’s success is built on the foundation of personal and professional integrity (www.mcdonalds). From the beginning, McDonald’s has based its reputation on trust and dependability, and their commitment to the community made them a household name. Founder Ray Kroc, believed in giving something back to the community in order to make the world a better place. Throughout the 1970’s, McDonald’s became involved with a lot of charity work. In 1974 established a charity called Ronald McDonald House. The purpose of this program was to provide temporary housing for the families of seriously ill children receiving treatment at nearby hospitals. Since the 70s, more than 10 million families around the world benefited from the comfort provided by Ronald McDonald Houses (www.rhmc). In addition to their community involvement, McDonalds has a long-standing commitment to environmental protection. Restaurants around the world have innovative programs for recycling, resource conservation, and waste reduction. The environmental achievements of this corporation have been recognized by organizations such as the Audubon Society, Conservation International, Keep America Beautiful, the National Recycling Coalition, and the U.S. Environmental Protection Agency (www.mcdonalds). McDonalds is also an equal opportunity employer. As an equal opportunity employer McDonald’s ensures that employees and job applicants are selected, trained, and promoted without discrimination to race, gender, sexual orientation, age or disability. The company promotes their employees based on their relevant skill, talents, and performance. In support of this McDonalds promotes and sustains a working environment, which is free from unlawful discrimination, harassment and bullying. Employees are regarded as members of a team where everyones opinion is valued and respected. The Human Resources department monitors the effectiveness of the discrimination policies at regular intervals and takes corrective action as necessary to ensure that they being complied with (www.mcdonalds). Employees who feel that they have been treated unfairly are encouraged to use the remedies outlined in the Companys handbooks. McDonald’s ethical standards, as well as their strategies for global ization and diversity are instrumental to the overall success of the company. The purpose of this paper was to discuss external and internal factors that have affected McDonald’s. This was achieved by explaining what the factors are where and how McDonald’s dealt with each of the external and internal factors. The factors discussed were globalization, diversity, and ethics. The paper illustrates how globalization is necessary for success and survival of McDonalds in the worldwide market. The paper also shows how diversity integrated people from different communities into the company, and adapted tastes and cuisines of the community. McDonalds showed ethics by being an active leader in the communities. There are many different values to the dollar around the world, many issues that have occurred in many of those regions/websites, and about 119 countries served by McDonald’s that rely on the functions of management to succeed. References Bateman, T.S., Snell, S.A., (2004). Management: The New Competitive Landscape (6th ed). New York, NY: McGraw-Hill Company. McDonald’s, (2005). Retrieved October 9, 2005, from McDonald’s website: mcdonlads.com/corp/values/diversity/supplierdiversity/commitment.html McDonald’s USA corporate responsibility report: 2004. (2004). Retrieved October 9, 2005, from mcdonalds.com/usa/good/report.RowPar.0002.ContentPar.0002.ColumnPar.0001.File.tmp/USA%20Report%20Layout%20(No%20Back%20Cover)%20(12-1-04).pdf Robinson, W. I. (2005). Global capitalism: the new transnationalism and the folly of conventional thinking. Science Society, 69(3), 316. Retrieved October 10, 2005, from ProQuest database. Sustar, B. Sustar. R. (2005). Managing marketing standardization in a global context. Journal of American Academy of Business: Cambridge, 7(1), 302. Retrieved October 10, 2005, from ProQuest database. Welcome to McDonald’s India. Retrieved October 10, 2005, from mcdonaldsindia.com/ourfood/nonveg/index.html www.mcdonalds.com, People, 2005 www.mcdonalds.com, Environment, 2005 www.rmhc.com, Ronald McDonald House Charities, 2005 Research Papers on External and Internal Factors Affecting McDonalds - Management Theory PaperDefinition of Export QuotasMoral and Ethical Issues in Hiring New EmployeesMarketing of Lifeboy Soap A Unilever ProductAnalysis of Ebay Expanding into AsiaPETSTEL analysis of IndiaThe Project Managment Office SystemIncorporating Risk and Uncertainty Factor in CapitalResearch Process Part OneOpen Architechture a white paperAssess the importance of Nationalism 1815-1850 Europe