Commercials and Their Effect on Children’s Language Free Essays

Language socialization is the process whereby children are socialized, or taught the norms and expectations of their culture, through the use of language. Language socialization includes both the use of language for socialization and the socialization to use language. Language socialization takes effect through exposure to language use, first from family members and other caretakers and then through further society, such as other children, childcare and media exposure. We will write a custom essay sample on Commercials and Their Effect on Children’s Language or any similar topic only for you Order Now What effect does media exposure, particularly exposure to television commercials, have on language socialization in children? An investigation of literature suggests that television and commercials are likely to have a poor effect on language socialization, leading to inaccurate ideas of the importance of language and the culturally correct use of language. The general effects of television viewing on socialization are well known. According to Coats Feldman (1995) American children spend significant amounts of time watching television – more time, they noted, than talking to adults, playing with siblings or attending school. They examined the effect of television on nonverbal socialization, and found that nonverbal displays of emotion are found at an unnaturally high rate as opposed to the natural environment. This can lead to frequent television viewers expressing a more expressive nonverbal emotional display style, due to incorrect socialization about the appropriateness of nonverbal display. Their study found that elementary school children who frequently watched television had more success at encoding emotions (particularly those frequently displayed on television such as happiness and sadness) than did children who infrequently watched television. They also found that these children used more emotive facial expressions. This is in opposition to cultural norms that require active regulation of facial expression, and may constitute a social disadvantage. DeLoache and Korac (2003) noted that there has been a substantial amount of research indicating that there is a correlation between violent programs and violent behavior. Neuman (1980) performed one of the first studies on the effect of television and listening behavior in children. She noted that the rapid pace of children’s television programming meant that children never had time to integrate the information transmitted by the programs. The changes were so frequent that children did not have the ability to learn to recognize the words presented in other contexts, meaning that language socialization through these television shows and commercials was ineffective and incomplete. Her study focused specifically on the correlation between listening skills and television viewing. She found that children did not routinely suffer a degradation of listening skills at increased levels of television viewing; listening skills, she determined, tend to be linked more to intelligence than to television viewing or artificially shortened attention spans. However, she did note that children who watched a lot of commercials, documentaries and news shows did have a decreased level of listening skills. She posited that this was due to the explicit lack of socialization cues aimed at children within these programs leading to decreased listening skills and attention spans. In short, these programs did not provide enough simulated human interaction to allow for language or cultural socialization, even as a substitute for human interaction. Durkin and Judge (2001) examined the effect of television language socialization on children in the specific context of foreign language speakers. The authors noted that language is a marker of ethnic identity and enculturation; reactions to language could also be a sign of ethnic prejudice. Ethnic minorities are often underrepresented in the media as well as portrayed in an inaccurate manner, perpetuating stereotypes and negative images of the ethnic minority. The authors wanted to investigate this portrayal on the socialization of young children around foreign languages at various ages. They found that three to five year olds routinely learned words from television programs, and that younger children used foreign language as a cue that a program’s content is not aimed at them. The authors performed a study that used videos of a family, speaking both English and an artificial foreign language, in prosocial and antisocial situations in order to gauge the effect of the foreign language on the children’s perception of the situation. The authors did not find that the foreign language routinely affected the children’s perception, although younger viewers did tend to view the foreign language speaking portrayals more negatively (in line with cognitive development theories which indicate that younger children see those who are different from them as a threat). The authors noted that the eight year old group showed a marked bias against the foreign language groups in both the prosocial and antisocial situations; this, too, is accounted for by cognitive development theories, which indicate that a metalinguistic shift occurs around the age of seven or eight. This effect has apparently dissipated by the age of ten. Children of all age groups responded positively to the prosocial groups, and negatively to the antisocial groups, in line with expected socialization. The authors concluded that although foreign language could elicit prejudicial reactions in children, it is not clear that it is the foreign language that causes these reactions. However, this study clearly indicates that television’s negative portrayal of ethnic minorities could impact children’s later attitudes and socialization. Barling and Fullagar (1983) performed a factorial study examining children’s attitudes to commercials, including statements such as â€Å"I learned something new† and â€Å"The advertisement was entertaining.† This study did not show any explicit awareness on the part of the children surveyed of learning or socialization through commercials. Bradbury (2004) stated, â€Å"A great deal of research has been done on this subject and, though varying greatly in its methodology and conclusion, would appear to suggest that it is not until the age of 12 that all children have developed a full understanding of the intention of advertising. In particular it is not until this age that all children fully understand the ‘advocatory’ nature of advertising, that is the way in which advertising communicates only positive messages about a product in order to encourage sales.† This inability to distinguish reality from commercial advertising may further increase the risk of inappropriate socialization through television commercials. Bradbury noted that exposure to commercials at an early age may increase the risk of developing a consumerist mentality that children do not have the capacity to recognize as inappropriate. Are there any potential benefits to children from television viewing? DeLoache and Korac (2003) examined the effectiveness of video learning in very young children.   The design of television programs for children, beginning with programs such as Sesame Street, aimed at preschool aged children, and progressing to programs designed for twelve to twenty four month old or younger children, are predicated on the idea that children can and do learn from video imitation. DeLoache and Korac noted that children do learn from these programs, although not as early as they can learn from direct interaction with other humans. Children as young as fourteen months have been observed to show learning behaviors (perceiving and interpreting the action, forming a memory representation of the action and then retrieving the representation at some later time) from behaviors observed on television. However, this is several months later than children have been observed to perform the same learning behavior in response to interaction with people. From this the conclusion can be drawn that children can display learning and socialization behaviors from television, though not as effectively as from person to person interaction. A review of literature regarding language socialization and television, including television commercials, learning programs and other forms of television aimed at children or viewed by children indicates that language socialization is provided by television, but at a lower quality than that provided by personal interaction with peers and adult caregivers. DeLoache and Korac indicated that television can provide learning opportunities for children, though not at as high a quality as personal interaction; children were seen to learn from television at a later age and a lower rate than from other people. Neuman demonstrated that television, particularly television that is not designed to provide socialization for children, could negatively affect listening behavior. Additionally, some forms of children’s programming, which are rapidly paced and change content quickly, lead to inadequate language socialization as children are left unable to recognize new words outside of their original context. Coats and Feldman examined the effect of television on non-verbal socialization in children. They determined that children with high levels of television viewing had an inaccurate view of the frequency and appropriateness of non-verbal emotional expression, which could lead to a social disadvantage in a culture which values control of emotional expression. Barling and Fullagar found that children had no explicit understanding of the purpose or meaning of television advertising, where Bradbury stated that children continued to lack understanding of the purpose of television advertising as late as age twelve. Durkin and Judge determined that negative portrayal of ethnic minorities on television might affect language socialization. Examination of literature indicates that while television viewing may have some limited positive effect on language socialization and learning behaviors, it is unlikely to be a substitute for personal interaction between peers and adult caregivers. Children were shown to have less understanding of appropriate social cues and behaviors, and did not retain as much language information due to inappropriate presentation and inadequate time to process and retain knowledge. Commercials pose a particular problem because they not only use a limited language set, but also portray and enforce an inappropriate consumerist attitude which children are unable to distinguish as not being the cultural norm. Works Cited Barling, Julian Fullagar, Clive. â€Å"Children’s Attitudes to Television Advertisements: A Factorial Perspective.† The Journal of Psychology. 113 (1983):25-30. Bradbury, Paul. â€Å"Television Advertising to Children – To Regulate or Legislate?† Children Society. 14 (2004):73-75. Coats, Eric Feldman, Robert. â€Å"The Role of Television in the Socialization of Non- Verbal Skills.† Basic and Applied Social Psychology 17.3 (1995): 327-341. DeLoache, Judy Korac, Nada. â€Å"Video-based Learning by Very Young Children.† Developmental Science. 6.3(2003):245-246. Durkin, Kevin Judge, Jasmine. â€Å"Effects of language and social behavior on children’s reactions to foreign people on television.† British Journal of Developmental Psychology. 19 (2001):597-612. Neuman, Susan. â€Å"Listening Behavior and Television Viewing.† Journal of Educational Research. 74.1 (1980):15-18. How to cite Commercials and Their Effect on Children’s Language, Essay examples

Market Entry Strategy for a New Product and Start Up Business

Question: Discuss about the Start Up Business and Market Entry Strategy for a New Product in New Zealand. Answer: Introduction The report would be based on market entry strategy for a new product that would be developed in New Zealand and would be exported to San Francisco. The particular product selected for the venture is ready to eat food for employees of the Silicon Valley in San Francisco. The product would be mainly targeted at the Niche segment of the employees who depend on ready to eat products due to unavailability of time due to their strict work schedule. The main aim of the SME that would be discussed here would be to develop unrivalled ready to eat for the targeted sector and undertake an appropriate market entry strategy to enter the much competitive ready to eat food industry in San Francisco. New Product concept The product that would be developed for the purpose of exporting to San Francisco would be ready to eat food for the niche segment of employees working in the Silicon Valley in San Francisco. Reports highlight that the convenience and demand for ready to eat meals have played an important role in encouraging the growth of ready to eat meals in New Zealand. These convenient meals are seen to be very beneficial for time-poor consumers who do not have time for cooking or do not find it convenient to cook a proper meal. Companies like My Food Bag are major competitors in the ready to eat meal industry in New Zealand. The company offers ingredients and recipes in order to cook nutritious and delicious food quickly. However this effort by the company to promote nutrition in the ready to cook meals have been encouraging other companies in the ready to eat food industry to look for more nutritious alternatives like glutten free products etc. Thus the main aim would be the development of read y to eat meals that have nutritious ingredients that have value addition for the consumers. The key trend that is likely to influence the ready to eat food industry in the coming years is health and wellness. Thus the main aim should be the development of ready to eat products that are both delicious as well as do not compromise on the nutritional value. There are several players in the local market in New Zealand who have been developing niche products in this category which are gluten free and nutritionally beneficial as compared to the ready to eat meals which compromised on the health and wellness factor. However major players like Heinz and My food bag could be expected to enter this segment with the growing demand for nutritional ready to eat meals in New Zealand. More over market research in the ready to eat meals in New Zealand also highlights a growing demand for oriental and Asian flavors with changing ethnic demographics and focus on variety in taste. Bundle of benefits for the targeted Niche market The product development that is being focused in this particular paper is ready to eat food for IT and business people who are time- poor consumers and do not have the time to cook a delicious and nutritional meal. The product would be developed in New Zealand and would be exported to San Francisco Silicon valley and would use retort packaging. The existence of ready to eat meals could be seen in San Francisco but the main difference between those available ready to eat food and the one that would be exported from New Zealand would be the fact that these ready to cook food would be developed for the targeted niche market that is the IT and business people and would be completely nutritional products with a focus on gluten-free products (Chung and Enderwick, 2001). More over a focus could be seen on oriental and Asian flavors being developed in different parts of the world thus the SME in concern would be developing ready to eat food with oriental and Asian flavor which also have nutr itional value. The ready to eat products would not only be developed on Asian and oriental flavors but different food items would be available catering to different taste buds. The targeted market here would be the IT and business people in San Francisco Silicon valley and thus would be targeting the niche market in the ready to eat food industry. The main benefits of these products exported to the targeted market would be nutritional benefit which is mostly missing in ready to eat food items owing to the presence of gluten and other preservatives that could be harmful for daily consumption. More over the focus on development of oriental and Asian tastes would be a welcome change in the ready to food industry in San Francisco. The exporting of the ready to eat food products would be done with the help of retort packaging which are durable pouches for ready to eat meals. All ready to eat food products are sold in pouches and barrier bags which are double laminated layers and protect from spill, puncture and contamination. But the new product developed would be exported to the niche market in retort packaging which is a unique stand up pouch which are mainly used for meals like pasta, rice, soups etc. since many products would be having gravy retort packaging would be best suited for the product delivery (Doherty, 2007). More over the products would be targeting the niche business and IT employees and thus would have to provide food grade material for packaging and retort packaging is also well known for increasing the shelf- life of the product. Since the products would be exported to another country it would be important to use packaging which would increase shelf- life of the products. Retort packaging has become an important alternative to traditional canning methods and would be suitable for export purpose of ready to eat food products from New Zealand to San Francisco (Buckley and Casson, 1998). The targeted market segment would thus have multiple benefits from these newly developed ready to eat meals. Firstly time-constraint customers would be able to consume them without having to worry about nutritional factor and secondly they would have access to different flavors from around the world in ready to eat meals which is quite difficult to find in this segment (Anderson, 1997). Analysis your key competition in the target market and present their brief profiles The key competition in the targeted market could be tough with the presence of ready to eat meals in San Francisco. Wise company is a reputable name in the ready to eat and cook meals in the targeted market and with their online shopping option they could be the main competitors for the SME developing and exporting ready to eat meals from New Zealand. The company also has a special gluten-free food storage section which specializes in gluten free products in general. However the pricing is somewhat lower than the expected pricing of gluten free products to be exported to San Francisco Silicon Valley for Business and IT people (Goodnow and Hansz, 1972). Another competitor in the packaged food segment in the targeted country would be ADF food which mainly engages in exporting ready to eat food in different parts of the world. The company operates in 55 countries and deals in canned foods, chutneys, pickles, frozen food and ready to eat food. The company specializes in distributing orga nic Mexican food across the main stream US market. Thus could be seen as a major competitor in the ready to eat food industry. The company also has manufacturing units in different parts of the world like India and other regions which has brought down manufacturing costs. The company does not only cater to the niche market rather with their different brands like Aeroplane, Truly Indian, Ashoka, Soul, PJs, Camel etc they cater to different market segment from economic segment to the Niche Segment. PEST Analysis of US The PEST analysis would help in identifying the external market factors that could influence the expected ready to eat food business from New Zealand to San Francisco. The PEST analysis would help in highlighting the political, economic, social and technological factors that could influence the export business of ready to eat food in US. Political factors- The effective rule of law and the strong democratic set-up in US makes it an attractive business destination for the ready to eat food segment. The political condition of US could be said to be stable for export business. However the rules and regulations are strict and hence while targeting the niche market the quality of products would have to be maintained to keep on exporting ready to eat food in the country (Omar et al. 2009). Economic- US is the largest economy in the world and the services and manufacturing industries are the main source of its economic strength. With the 2008 recession there were growth in unemployment rates and an adverse impact on the economy of the country but the third quarter of 2014 witnessed economic growth with increases spending power of companies and both consumers. Hence the economic condition of US could be seen an important factor which could positively influence the exporting business. More over the ready to eat food could be said to be targeted towards the niche segment of business and IT people and the high spending power of the targeted segment suggests that the products would be instant hit with them (Burns, 2010). Social factors- Us has an increasing aging population which could be both negative and positive for the ready to eat segment. The ageing population would find it feasible to have ready to eat food but would focus on more nutritional option and hence these products would be suitable for them as they would be prepared keeping in mind health benefits. The products would be gluten free thus would be suitable for consumption of all age group. However the main targeted segment is the niche market of IT professionals and Business people. The products would be developed focused on several tastes like Asian, English, and Oriental etc and thus would cater to every taste bud. The growing time constraints of people are also encouraging them to look for easier alternatives and this is also applicable for food where more and more professionals prefer ready to eat food. But a healthier option is also preferred thus the export business of ready to eat food to the niche market would be much positivel y influenced by the social factors prevailing in US. Technological factors- innovation and technology could be said to be the corner stone of US economy and technological developments have helped the economy to grow. In such a scenario people would always prefer innovation in everything as well as food. They would require innovation in ready to eat food too and the export of gluten free Nutritional food would thus be welcomed in US. Persons of niche targeted buyers The persons of the niche targeted buyers would be the IT professionals and Business people of the Silicon Valley in San Francisco. These segments have been targeted for the new product which would be developed in New Zealand and exported to San Francisco since the products developed would be done for the niche market. The nutritional factors involved in ready to eat food segment would require the SME in New Zealand to develop gluten free products and products that have nutritional value for the targeted segment. Thus the pricing for development and packaging would be higher as retort packaging would be used for keeping the food fresh with a longer shelf-life. The targeted segments are the IT professionals and business people in Silicon Valley in San Francisco since these professionals have higher spending power and owing to their time constraints they majorly depend on ready to eat food. However with higher spending power they also look for more healthy alternatives as most of the re ady to cook food is developed with gluten as the main element and thus compromising on nutritional factors (Kolvereid and Isaksen, 2008). Thus the products developed on basis of health and wellness would attract the targeted segment. More over the availability of different flavors from around the world would make these products more popular with the targeted segment that have the money to spend on different flavors but not the time to cook. Targeting IT Business people who are busy The product is mainly targeted at the business and IT segment. These sectors are extremely stressful and prefer ready to eat food as compared to cooking food. The growth of the fast food industry in the US has been mainly because of such factors. However, the fast food industry also accounts for obesity and diabetes and therefore a healthier option is needed. The business conceptualized here has been to provide fresh healthy ready to eat food. Retort packaging technology would be used which would ensure the food value is retained and the food is fresh. Further, this process would also save space and thus exporting will be convenient. Canning process takes a lot of space and hence export costs would be high but in retort packaging the costs would be lower. Investigate the nature and structure of the global capital market for start-up/venture capital Start-up businesses need funds and these funds are mostly in form of venture capital or bank loans. It is quite difficult for a start-up to secure a bank loan because bank loans are mostly against securities. However, venture capitalists provide funds based on the lucrative business idea. Venture capitalists not only seek a percentage of return on the their investment but also claim equities in the company. The Silicon valley has been extremely successful mainly because of the availability of venture funds. The crowd funding concept has also been extremely popular in the US. After, the 2008 recession there has been a depletion in the global capital market and this is a major challenge for start-up businesses. The crisis in Europe too has been a major cause of concern for the global capital market. For this organisation there can be two options, either to secure venture funds from the domestic country or to look for international funds. The capital market has been highly fragmented an d local capital markets can be small and therefore looking into the global capital market can be effective (Carter et al. 1996). However, there are few considerations that have been illustrated in the figure below Capital markets and Venture capital availability in New Zealand The capital market in New Zealand has been stable and the effects of recession did not deplete the market. There are several venture funds that are available in New Zealand. The New Zealand private equity and Venture Capital Association Inc (NZVCA) is one of the organisations which aims at providing the worlds best platform for private investors. The organisation has been proactive in developing angel funds, seed funds and venture funds. The New Zealand Venture Investment Fund (NZVIF) is also another organisation which has been into private equities. There are several other organisations and angel investors who promote entrepreneurship in New Zealand and therefore it can be stated that the business would be capable of generating the funds that it needs for this start-up Two market entry strategies There are different market entry strategies available for the SME who would be developing ready to eat food for the niche market in San Francisco. The best entry strategy for the beginning would be exporting and joint ventures. But since it is an SME export strategy would be the best market entry strategy for the company for targeting the niche market in the ready to eat food in San Francisco Silicon Valley. Exporting is the most well established form of operating in a foreign market. The foreign market in San Francisco could be targeted with this market entry strategy. Direct manufacturing would not be required but significant investment would be required for marketing strategies. Analyse and selection one of the above strategy and provide justification in terms of your status as a SME Thus the market entry strategy that would be used for entering the ready to eat food market of San Francisco would be exporting where products would be exported to San Francisco to a central importing division that would be selling the products in the targeted market of the country. The main advantages of this market entry strategy is that it is less risky as the manufacturing would be home based. More over this strategy would help the SME to identify the overseas market before they invest in a Brick and mortar store for direct selling. It also reduces the potential risk factors while operating in an overseas market. However a major disadvantage could the fact that in the initial stages the company would have to be at the mercy of the overseas agent and would have a lack of control. However ready to eat products that are nutritional and gluten free are lesser in ready to eat food industry in San Francisco and hence these new products exported from New Zealand would be able to attract customers with their nutritional benefits as well as varied range of flavors. References Andersen, O. (1997). Internationalization and market entry mode: A review of theories and conceptual frameworks.MIR:Management International Review, 27-42. Birley, S., Westhead, P. (1994). A taxonomy of business start-up reasons and their impact on firm growth and size.Journal of business venturing,9(1), 7-31. Buckley, P. J., Casson, M. C. (1998). Analyzing foreign market entry strategies: Extending the internalization approach.Journal of international business studies,29(3), 539-561. Burns, P. (2010).Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave Macmillan. Carter, N. M., Gartner, W. B., Reynolds, P. D. (1996). Exploring start-up event sequences.Journal of business venturing,11(3), 151-166. Chung, H. F., Enderwick, P. (2001). An investigation of market entry strategy selection: Exporting vs foreign direct investment modesa home-host country scenario.Asia Pacific Journal of Management,18(4), 443-460. Doherty, A. M. (2007). The internationalization of retailing: Factors influencing the choice of franchising as a market entry strategy.International Journal of Service Industry Management,18(2), 184-205. Goodnow, J. D., Hansz, J. E. (1972). Environmental determinants of overseas market entry strategies.Journal of International Business Studies, 33-50. Kolvereid, L., Isaksen, E. (2006). New business start-up and subsequent entry into self-employment.Journal of Business Venturing,21(6), 866-885. Omar, M., Williams Jr, R. L., Lingelbach, D. (2009). Global brand market-entry strategy to manage corporate reputation.Journal of Product Brand Management,18(3), 177-187.

African Diaspora essays

African Diaspora essays After the Civil War and the emancipation proclamation by Lincoln the slaves of America were free. This was a huge step in making our country truly free to all people. The reconstruction of the south did not however work out smoothly for the freed slaves. There were many roadblocks along the way such as the Black Codes, the Plessy vs. Ferguson case and the terror of the Ku Klux Klan. The 14th amendment gave the freed slaves citizenship and some voting rights. From the reconstruction the 14th amendment the black Codes and the Plessy vs. Ferguson case all had significance on the status of African Americans from reconstruction to 1900. The radical republicans method of reconstruction called for an amendment that would do three things. Extend citizenship for all people. Punish the southern representation in the house if they didnt allow black voting, and not allowing and former confederates to hold office. These three things made up the 14th amendment. Also in the radical republican recon struction plan was the idea of station military in the south. This was very effective in giving the blacks their rights. Unfortunally when the military left the rights of the blacks went with them. The white supremacists treated the south as 2nd class people and were not given opportunities to get any jobs but manual labor. Also the KKK was formed to scare away blacks from voting and keep them in their so-called place, the plantation. The 14th amendment was a good thought, but it did not work out how the radical republicans had hoped going into the 1900s After Lincoln was shot in December of 1965, vice president Andrew Johnson took over office. He was a southern man and was not interested in blacks having the same rights as white people. Infact he encouraged southern states to intact laws limiting the blacks freedom. These laws were called black codes. They ranged in harshness through out the states but in all...

Lesson Before Dying essays

Lesson Before Dying essays A Lesson Before Dying written by Earnest Gaines is a novel about good and evil. A quote that relates to the novel is, In literature, evil often triumphs but never conquers. This quote is saying that even though there maybe evil present in everything, but it will never win the final battle and overcome all. In the novel there are many examples of this. Miss Emma and Grant are fighting the evil of the word hog that has been placed upon Jefferson. Along with Grant becoming friends with a white man and Jefferson overcoming the evil myth of prejudice in the society, these are all examples of how evil can be present, but never win in the end. Miss Emma is a passionate woman. She is very intelligent and she knows how to stop evil from conquering. In the novel, Miss Emma fought the evil of the word hog spoken by Jefferson lawyer. This one single word hog was the evil that kept a whole community of black people in fear and shame. Miss Emmas got the one man, Mr. Grant Wiggins, to help her overthrow the evil that has been placed on Jefferson and the community. Even though the evil word hog has been placed on the head of Jefferson, Grant and Miss Emma were able to manage to remove that evil from the community with both of their ideas and helpful items, such as food, a radio, and a pad and paper. All of these items helped Jefferson escape the evil and escape from the reality from being in prison to stop the evil once and for all. In the novel, there is a lot of hidden prejudice. This is the evil that everyone thought would win in the end, but they were wrong. Grant, a black man, was the target for racism for long periods of time. He was never offered drinks, called by the wrong name, and always treated badly by the white people. Until he met Paul, a young white prison guard. Throughout the novel, Paul and Gr ...

Money & Banking Assignment Example | Topics and Well Written Essays - 500 words

Money & Banking - Assignment Example al interest rates do not stimulate consumers and lowering the interest rates to 0% do not translate to reduced commercial bank lending rates (Krugman 1). In this case, the demand for money remains perfectly elastic as monetary policies by the central bank fail to arrest the situation. In this situation, reducing the inflation rate too close to 0 % leads to deflation (Krugman 1). Even if the central bank maintains the nominal interest rates are zero, the eminent deflation will raise the real interest rates to significant levels. Increasing money supply in this case derives no economic effect since interest rates cannot fall further. Indeed, in a â€Å"Money Trap† situation monetary injections into the economy by the central bank do not reduce the interest rates depicting the ineffectiveness of monetary policies. A â€Å"Money Trap† situation relates to a condition where any monetary policy to reduce the interest rates during economic recession is futile and creates a recurring crisis that involves consumers, commercial banks, and the central bank. The â€Å"Money Trap† situation manifests in Europe where efforts to rescue the euro from the economic crush led to looming deflation and reduced economic growth (Krugman 1). Central banks regulate money supply by buying or selling government bonds. The buying of government bonds by the central bank reduces short-term interest rates and enhances money supply by enabling commercial banks to access additional capital that increases lending and liquidity. Quantitative easing refers to unconventional monetary policies initiated by the central bank to buy government bonds and other relevant securities with the intention of lowering interest rates and enhancing money supply in the economy (BBC 1). Quantitative easing does not entail printing more money and is only applicable when short-term interest rates are at or approaching 0 %. The US Federal Reserve initiated a $4.5tn bond-buying Programme in December 2008 to drive the

Cell phone should use it on class room Essay Example | Topics and Well Written Essays - 500 words

Cell phone should use it on class room - Essay Example Students prefer carrying their handheld cell phones in order to surf information faster as well as keep themselves updated with what is being taught in class. These pocket sized devices help students keep connected to each other as well as reduce the burden on paper because information is so readily available that students find it easier to learn and grow personally by having knowledge right on their fingertips. Teachers can mail children about their problems and home work and keep in touch with them in a better manner as well. Cell phones also have various applications which help students make notes as well as keep reminders about school and college events and happenings and thus make the entire process less tiring both mentally and physically on the child. Thus, students prefer to use their cell phones during class hours and it can actually be a boon for them. Almost every class room around the world has a no cell phone policy – and much rightly so. Cell phones have become the biggest distraction, especially in a student’s life because of the capacity of applications and tools that they contain. Students find it tough to work on essays with pen and paper and have become obsessed with copying and pasting information for their work from the internet. Thus, it is leading to retarding their learning and growth process. Not only this, but cell phones keep beeping all the time and distracting young minds from learning what is important. Since almost every student is connected to the other, an array of text messages and calls never leave them, even inside the classroom. Thus, there should be some hours a day where a student does not communicate via his cell phone, but pays attention to what is being taught. Most children take to playing games and spending their time on social networking websites with cell phones within the classroom, wasting precious learning time.

The Varying Roles Of General Contractors Construction Essay

The Varying Roles Of General Contractors Construction Essay Many changes happen to a project during its life-cycle, the most significant of which is a change in the contractual relationship between the parties involved which is the objective of this dissertation to identify a feasible contractual solution to how a general contractor is able to act as both a main contractor and turnkey contractor within a single project. Keywords: collaboration, contract, general contractor, novation, private consortium, public authority, rights and responsibilities Introduction In a construction project there are several parties involved in the completion of the project. These parties can be from the public sector, the private sector or the third sector. The key parties are the owner/client, the architect/engineer and the general contractor. Between these parties there are business agreements in the form of contracts to complete the work in the project, such as: design, engineering, construction, management and maintenance. A construction project is ready for execution after the client/owner (hereafter called client) has completed the prerequisites such as decision on the scope of the project, acquires the funds, the land (site) and necessary approvals from the relevant authorities for the land use and the projects purpose. Upon meeting the criteria for establishing a project, the client will approach architects to submit designs for its selection, or provide a design and full construction specifications There are many ways in which the project could be executed. One way is when the client creates the project under a new company and establishes the various departments such as design, development, building and operations within that company and can execute the project with full control. Alternatively, dependent on many things such as the clients status (i.e. individual, company, consortium, government authority, funding agency, not-for-profit organization, international or regional development banks, etc.,), funding, site, etc., the project could be executed by the client using any of the construction works projects methods which will be later elaborated on in this document. Generally works contracts are awarded in two ways, as a turnkey contract where the client awards the entire project to a turnkey contractor or under a main contract where a general contractor gets to construct the significant portion of the facility (and the design and technical and services are sub-contracted by the client). Problem Statement During the project many changes could happen to the client-contractor relationship, the client and/or the contractor could be bought out by a competitor or investor, merged with another entity or liquidated and become insolvent. For the purpose of this dissertation, let us consider that the change has happened to the client and therefore the contractual relationship that existed with the previous owner and the general contractor is altered. For business reasons the new owner decides to change the relationship with the general contractor, and the general contractor is agreeable to that change to also act as a turnkey contractor for the project. Research Questions What kind of project will allow the general contractor to change its role? How can a general contractor act as both a main contractor and a turnkey contractor within a single project? Delimitation This study is written from a practical perspective, not legal, perspective, and focuses on the relationship between the client and general contractor in a building construction project to identify the parameters within which the general contractor is able to be both a main contractor and a turnkey contractor within a single project. Research Method The research for this study was conducted through qualitative and analytical methods from primary and secondary sources such as: interviews, published articles, reports, documents and books, internet websites, and public domain materials from internet websites (electronic books, archived documents etc.). Definitions Agreement (Also: Contract) A legal document that binds two or more parties to specific and implied obligations. Client-architect contract A written form of contract between architect and client for professional architectural services. Client-contractor contract Contract between owner and contractor for a construction project. Consortium A group of private sector entities who have joined together to bid for a project. Design-Build (DB) A procurement or project delivery arrangement whereby a single entity is entrusted with both design and construction of a project. Design-Bid-Build (DBB) Traditional contracting method in which design and construction phases of a construction project are bid and performed by two independent contractors under two distinct contracts. Design-Build-Finance-Operate (DBFO) Design, Build, Finance and Operate. A contract whereby one company undertakes a contract to perform these things for the length of the concession. General contractor A business entity that provides independent contractor services to owners directly or with the use of subcontractors. Main contractor A company that agrees to furnish labour, materials, equipment and associated services to perform the work as specified for a specified price. Private sector The domain where projects are funded with capital other than from taxes. Public sector The government domain where projects are funded with monies that comes in whole or in part from taxes. Special purpose vehicle (SPV) The project company established by the sponsors which has as its sole purpose the delivery of a project. Subcontract A written form of agreement between the turnkey or main contractor and another contractor or supplier for the satisfactory performance of services or delivery or material as set forth in the plans and specifications for a specific project. Turnkey contractor An individual, company, firm, partnership, corporation, association or other legal entity that is permitted by law to provide the necessary design and construction services, including engineering, architecture, construction contracting, and contract administration. 1.0 Contracts Prior to analysing which form of project will allow the general contractor to change its role and how is the general contractor allowed to change roles within a single project, it is necessary to outline what each individual contractual role and responsibilities are within a project. Such identification allows for a more accurate analysis to answer the research questions presented in the problem statement section of this study. 1.1 What is a Turnkey Contract? A turnkey contract is a business agreement between the client and a general contractor, where the general contractor (now turnkey contractor) is responsible for the design, engineering, construction and management of the project. The construction industry refers to the turnkey contractor as a single point of responsibility, a phrase that reflects the turnkey contractors role and contractual obligations. Note: The client can award the turnkey contract to either an architect or a general contractor, however this dissertation continues on the premise that a general contractor is awarded the turnkey contract. The turnkey contract is a product of the Design-Build (DB) project delivery system i.e. it is a method by which the client controls the project from start to finish. The turnkey contractor may subcontract an architect to perform the design work and trade contractors to perform specific works in the turnkey contract. A turnkey contract can also be used in a Design-Build-Operate (DBO) project delivery strategy. While the turnkey contractor is responsible for providing design, engineering, construction and management services, it is also obligated to operate the facility once it is fully constructed and equipped for purpose. The purpose of DBO is to provide the client with the opportunity to let a turnkey contractor in a multidisciplinary contract: to design, build and operate as opposed to individual agreements to govern the different facets of a project (Sunna, 2009). In a DB project the client has a direct relationship with the general contractor, and the general contractor has a direct relationship with the architect as shown in Figure 1. In the DBO project, the client has a direct relationship with the general contractor, where the turnkey contract (see Figure 1) will include stipulations for operating the facility once completed. Figure An example of a DB project delivery system 1.2 What is a Main Contract? The main contract is a contract awarded by the client to a general contractor to execute the main construction works in the project. The client initially awards the chosen architect to prepare drawings, specifications, and other design elements for the project. After the architects submission is received the client then puts to tender the construction works for the project. This could be broken into several tenders, one of which is the main construction work. The general contractor who wins this bid is awarded the main contract. The general contractor (now main contractor) may subcontract one or more trade contractors to carry out specific works in the main contract. The main contract is a result of the Design-Bid-Build (DBB) project delivery system, a method through which the client controls the project. DBB consists of three parties: the client, the design party and the construction party. The client is responsible for providing the project site, all the necessary clearances from the relevant authorities and funding for the architect and contractors to complete the project. The budget is an important part of the project as it allows the architect to design a building that meets the clients requirements and it determines the scope of the project. The design party includes the architect, specification writers (consultants), engineers (structural, electrical, mechanical), interior designers, quantity surveyors and other participants the architect considers necessary for completing the project. The clients involvement in the project is to monitor and evaluate progress and perform quality assurance that the turnkey contractor is moving according to schedule and within budget. The turnkey contractor in turn liaises with the client and subcontractors on a regular basis to perform its quality, quantity, time and budget control. The construction party consists of the main contractor who is responsible for providing the workforce, material, equipment, machinery and professional expertise to complete the project in accordance with the design and plan documents which are provided by the architects. In a DBB project the client has a direct relationship with the architect and the main contractor (where the architect and contractor have an indirect relationship) shown in Figure 2. Figure An example of a DBB project delivery system 2.0 Private Finance Initiative This section focuses on the Private Finance Initiative (PFI) in an effort to answer the research question: What kind of project will allow the general contractor to change its role? The research on project delivery systems and procurement methods show that the PFI involves both the public sector and the private sector working in collaboration to develop a project. 2.1 What is the Private Finance Initiative? The private finance initiative (PFI) is a way by which public infrastructure projects are funded with private capital. Initiated by the Australian and United Kingdom governments, PFI has been adopted in many countries by corporations, national governments, and international bodies such as the World Bank and the World Trade Organization. In general, under PFI, the government (public sector) is the client and invites the private sector to bid on a project, which includes construction work, services, operation and maintenance. Because these projects require a variety of inputs the government and a single private company or a consortium of companies in the private sector place a bid on the project, and work in collaboration to execute the project. The concept of PFI is to involve the private sector in public sector services or projects, because it has multiple positives it enables governments to provide national infrastructure such as bridges, motorways, power-supply, etc., at an earlier and quicker pace to the public; it provides business opportunities to the private sector; it increases employment; and, it offers better value for money. When a project is awarded, the public and private parties (in this case the government and private companies) create a new private company to manage the project and deposit the required funds in this projects accounts. These funds are used to initiate and implement the project. For a construction project after the building is fully operational, if the private companies made an agreement for the maintenance of the building over a period of for example, 25 years; the government will reimburse the cost of the project (including interest) over time. Alternatively, the government does not pay the private companies their share of the costs but allows the private companies to maintain, operate and manage the facility (bridge, toll road etc.) and recoup their costs and some profit over an agreed number of years. PFI is also known as Design-Build-Finance-Operate/Maintain (DBFO, DBFM or DBFO/M). The private sector designs, finances and constructs a new facility under a long-term lease, and/or operates and maintains the facility during the term of the lease. The private consortium transfers the new facility to the public sector at the end of the lease term. 2.1.1 Contract Process under PFI A government authority signs a contract with a private party (a company or a group of companies) creating a public-private partnership (PPP). The PPP is created for the purpose of providing the PFI contract. A PPP is a legally-binding contract between a public authority and a private consortium for the provision of assets and the delivery of services that allocates responsibilities among the various partners. Before the PPP is established a private company creates a new company in collaboration with other private companies, this is referred to as a Special Purpose Vehicle (SPV). The SPV is made up of private investors, a construction company, a maintenance company and a bank lender/s. SPV contracts with the government creating a PPP, and also with general contractors responsible for constructing and maintaining the building or infrastructure facility. The banks funding PFI projects are repaid by SPV, from payments received from the government over the duration of the PFI contract. The repayments are based on the SPVs ability to meet the requirements specified in the contract. 2.1.2 PFI Project Organisation Structure See Figure 3, the SPV is divided into subgroups: A holding company, private investors/bank lenders and a services or operating company. The primary contract is between the government and the SPV, and the requirements in the specification transmit from the SPV to the holding company, the investors and operating company through secondary contracts, and then filter down to the trade contractors. Figure Example of a PFI project organisation structure What kind of project will allow the general contractor to change its role? A PFI project created through the partnership of the government and the SPV allows for a general contractor to change its role. As shown in Figure 2, the SPV is a part client (from the SPVs perspective) and a turnkey contractor (from the governments perspective). 2.2 How PFI allows a general contractor to change their role Once a PPP contract is signed a new company is formed to finance the project. Referring to Figure 2, the SPV is considered as the client in this project because the government requires additional funding for the service or building project and is allowing the private party (the holding company, the investors and operating company) to partially privatise the project. However, the government is still part owner; from the governments perspective the SPV is both a part owner and a general contractor. Note: In a PFI project a client can also be a general contractor, depending on the project, this is known as owner-builder. In Figure 2 the SPV is both financing and operating the project, depending on how the SPV wants deliver the project, Figure 2 assumes that the general contractor (in the project environment) is a main contractor, therefore the SPV will have a client-contractor relationship. But the government is still a part client to the project therefore the SPV is also considered as the turnkey contractor to the project. 3.0 Novation This section focuses on Novation which is a situation in which a main contractor can be also turnkey contractor. 3.1 What is Novation? The business dictionary defines novation as the substitution of an original party to a contract with a new party, or substitution of an original contract with a new contract. Once the original party is replaced, the original partys obligations are discharged, and the new party is responsible for the replaced partys obligations. Novation can only occur when all the parties involved agree to replacing a party or replacing a contract. For example: novation might occur when one company buys another company where both companies are providing project services to the client, in this case the single company formed by the merger of the two companies will receive the novated contract. By replacing the obligations of the original party the main contractor all the parties involved (client, architect/engineer, and main contractor) in the original contract must agree for the replacing to take place. If the agreement to replace comes into effect, the new party will take over the responsibilities and obligations of the replaced party, i.e. the new general contractor will become a replacement to the original main contractor. According to Michael Rowlinson (2010), if the main contractor is being replaced with a new general contractor the clients role in the project remains unchanged (the client being the contracting party). 3.2 Process of Novation In the early phases of a DBB project, the design work is carried out by an architect selected by the client. The contract between the client and architect specifies the professional services the architect will provide for the projects duration. Part of the contract may include stipulations for the architect to be novated to a general contractor, see figure 4. When the novation occurs, for example; after a general contractor is awarded the main contract before the project is implemented, the client novates the client-architect contract to the main contractor, thereby novating the architects responsibilities and obligations. Generally, the architect is re-hired by the general contractor to complete the design work. The client is only passing the risk and responsibility for design to the general contractor after the tender. In a DB project, the general contractor is completely liable for the design work, including the selection of architects. With novation the client selects the architect and novates them to the general contractor at a later stage. Figure 4 illustrates how novation affects the contractual relationship in a DBB project. The Client (A) contracts with an architect (B) and with a general contractor (C). Later, the client wants to create a single point of responsibility for both design and construction, therefore the client (A) novates the architects rights and responsibilities to the general contractor. Figure Example of before and after effect of novation in a DBB project 4.0 The Case Study A case study is used to illustrate the practice of PFI projects. This case will provide insight to the role of the public and private parties, and how this information is used to find how a general contractor is able to act as both a main and turnkey contractor. 4.1 Newcastle PFI Project Medical Service Facilities Development A contract was signed between the Newcastle-upon-Tyne Hospitals NHS Trust (public party) and a private consortium led by Equion plc, in May 2005. The contract was signed for a PFI project consisting of developing the Freeman Hospital and Royal Victoria Infirmary (RVI) in Newcastle, United Kingdom (UK). The purpose of this project is to improve the medical services in Newcastle, and transferring all of the hospital services from the Newcastle General Hospital site to the new facilities available in the Freeman Hospital and the RVI sites. The Newcastle-upon-Tyne Hospitals NHS Trust promoted the project, which had a total capital of approximately GBP 300M. The PFI project involved constructing new facilities, renovating and refurbishing the existing facilities. The Freeman Hospital will receive a cancer and renal services centre, and a new multi-storey car park. RVI received an operating theatre, a new accident emergency department, with all the clinical support services required, such as neurosciences, infectious diseases, traumatic orthopaedics, dermatology and critical care. Additionally, childrens services were integrated into a purpose-built facility adjoining the main development, (Newcastle-upon-Tyne Hospitals NHS Trust, 2005). Figure Newcastle PFI project organisation structure See Figure 5, the PFI was established to make the Newcastle-upon-Tyne Hospitals NHS Trust responsible for the clinical care of patients, maintenance of equipment and existing facilities, technologically advancement medical equipment, and managing the multi-storey car park, after the new facilities were fully equipped for their purpose. Healthcare Support (Newcastle) Limited, controlled by Equion plc, (through subcontracts) provided the designing and construction work, non-clinical services and maintenance for a period of 38 years. 5.0 Discussion The research on PFI in section 2.0 of this dissertation explains that the public authority is the client in a PFI project; however the public authority is collaborating with a private consortium for ownership of the project. Through this ownership the public authority is allowing the private consortium to partially privatise the finished facility and/or service once the project is complete. Because the public authority requires the facility and/or service to be available, the private consortium is responsible for providing it. Therefore the private consortium is responsible for the design and construction of the project. The private consortium is made-up of separate entities: a holding company, a construction company, an operation and maintenance company, bank lender/s and private investors. The design and construction works are subcontracted to the construction company. Theoretically, the public authority can novate their rights and responsibilities to the private consortium making them the client, however in PFI the private consortium is responsible for completing the project, and novation would not alter their responsibilities in the projects organisation structure. However, if the public authority novated their rights and responsibilities for the project to the private consortium, the private consortium is able to privatise the project in its entirety. Using the data presented in the previous section, the Newcastle-upon-Tyne Hospitals NHS Trust is the client through PFI and Healthcare Support (Newcastle) Limited is the private consortium. See Figure 5, the relationship between the Trust and Healthcare Support is a PPP contract: they are legally bound to each other for the provision of the facilities and services within the project. The relationship between Healthcare Support and Laing ORourke is a design and construct contract, whereby Laing ORourke is responsible for the design and construction through a subcontract of the PPP. From Laing ORourkes perspective, Healthcare Support is Laing ORourkes client. It is important to consider that Healthcare Support, although collaborating with Trust, is still responsible for outcome of the project i.e. is responsible for the quality of the design, engineering, construction, management and maintenance for the project. These responsibilities are typical of a turnkey contractor. Now Healthcare support is both a client and a turnkey contractor within the project. In further detail, Healthcare Support is a turnkey contractor to the Newcastle-upon-Tyne Hospitals NHS Trust, and a client to Laing ORourke. It is also important to note that Laing ORourke is responsible for the design and construction of the new facilities; however Interserve (Facilities Management) Ltd. is legally obligated to Healthcare Support for the maintenance of both the existing facilities and advanced medical equipment. From a Healthcare Supports perspective Laing ORourke is a turnkey contractor (see Figure 5). If Healthcare Support contracted with an architect and a general contractor separately, the general contractor would be a main contractor. Theoretically, the Trust collaborates with Healthcare support, Healthcare support then contracts with an architect to design the project, after the design is approved general contractors place their bids. Healthcare awards the winning general contractor a main contract. 6.0 Summary In the beginning of the PFI project, the public authority is the client and the holding company is a turnkey contractor. The holding company then subcontracts an architect for the design, once the design is approved; the holding company tenders the construction work. The holding company then subcontracts a general contractor for the construction work, where the general contractor is now the main contractor within the project, shown in Figure 6. Figure Example PFI project If the holding company is bought out by a competitor or investor, merges with another entity, the holding company can novate the architects rights and responsibilities to the main contractor, if all the parties agree to this contractual change. The main contractor is now the turnkey contractor, shown in Figure 7. Figure Follow-up to Figure 6 including novation Alternatively, if the holding company becomes bankrupt during the project, the holding company can novate its rights and responsibilities to the new holding company that substituted the original party. This new holding company can re-organise the contracts (through novation) to make the main contractor a turnkey contractor, responsible for the design, engineering, construction and management services for the rest of the project. 7.0 Conclusion Based on the finding of this study, during the project due to changes in the client or contractor status the client-contractor relationship can evolve and a general contractor can act as both a main contractor and a turnkey contractor within a single project through PFI procurement. However, this can only occur through novation: If the client decides to change the relationship with the general contractor, and the general contractor is agreeable to that change, the client is able to novate the contract. A general contractor is able to initially act as a main contractor; however only through novation can a main contractor become a turnkey contractor, because novation occurs within a single project. Therefore a general contractor is able to act as both a main and turnkey contractor in different phases during the projects duration through a novation of the original contract. 8.0 Putting into Perspective The information presented in this dissertation may be used by private sector clients/owners who may or may not have professional experience in building construction projects, and wish to know alternative options when choosing project delivery systems to implement their project. Prospective owners may choose to use the information in this dissertation when considering stipulations for novation in their agreements with building professionals i.e. architects and general contractors, if they (the owner) wish to have control over the designs that dictate the buildings final appearance, and then transfer the responsibility for any ongoing design work to the general contractor. This dissertation can provide an undergraduate studying a degree relevant to project management and the building industry, with information pertaining to alternative contracting and relationships between individual parties in different phases of building construction projects.