Arthur Conan Doyle’s stories Essay

In these stories we have three totally different villains, all with their own motives. Before we actually meet Dr Roylett we hear about him from his step-daughter, Miss Stoner. She describes his violent past and his current behaviour. Then, subsequently, we see his violence for ourselves as he storms in to Holmes’ office and bends the fire poker, threatening Holmes. During the di nouement , when we are told of his crime, we realise how clever and cunning he is, and how he had organised the murders; with the bell pull and ventilator. We can take from this that he was a very cold-hearted man who cared more about money, than his own kin. In â€Å"The Cardboard Box† Jim Browner commits a double murder out of jealousy. Miss Cushing gives a description of him. She says that â€Å"a little drink would send him stark, staring mad†. This makes us think that he could be a dangerous man. When he finds out that his wife is having an affair he threatens to kill her lover if he is ever seen in her company again. When he sees them together he goes mad and carries out his threat, in a spur of the moment, jealous rage. The villain in â€Å"Silver Blaze† is a different kind of criminal. We believe, at first that John Straker, is the victim of a brutal murder. At the end we find out that, in fact, he was attempting to sabotage the horse in his care, so he would win a bet that he had against him. Therefore, the motive in this story is money. John Straker never did win the bet because whilst trying to injure the horse, Silver Blaze put up a struggle and he was struck in the head by the horses hoof. The Sherlock Holmes stories all follow the classic structure of detective stories. The clues are set out throughout the stories so that the reader can try to work out the crime too. Red Herrings are often used, to throw the reader off the scent and make sure we don’t work it out too soon. These stories all have a di nouement, where Holmes explains the crime, and tells how he solved it. These three stories, especially â€Å"The Speckled Band†, have an emphasis on exotic features which would have intrigued the Victorian audience. The British empire in that time took up a large percent of the globe so they would be interested in the lands that their country owns. Things such as Dr Roylett’s â€Å"pets† would have fascinated them because in Victorian times, the majority of people didn’t travel, so they had no contact with exotic things. The reference to gypsies in two of the stories would have had an effect on Victorian readers because in those times, gypsies were believed to cast spells and would frighten the reader. For a Victorian reader justice would have been more important than how it was executed and in these stories, justice is always given. Although, Holmes sometimes takes the law into his own hands and becomes the judge and jury. â€Å"I am no doubt indirectly responsible for [his] death, and I cannot say that it is likely to weigh very heavily upon my conscience. † The world that Holmes lived in is very different to the world we live in now. The methods of detection were very nai ve and weren’t nearly as accurate as the forensic detection we use today. Holmes is an upper class citizen as most detectives may have been in those days whereas the modern detective is either a member of the police force or a professional private detective. The age of the talented amateur has passed. Even though the Sherlock Holmes stories might not be as successful today as they were in Victorian times because of the difference in societies due to time, Sherlock Holmes is still one of the most famous fictional detectives of all time. I believe that this is because his stories set the basis for modern detective novels and films. I also think, that because it was one of the original detective stories it is more compelling. Overall, the likeable characters, intriguing plot, gripping climax and the sense of realism have made the Sherlock Holmes stories very successful, in the past and present. Kathryn Thompson Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Arthur Conan Doyle section.

Executive Summary on Purell

Purell Instant Hand Sanitizer is a portable hand washing solution that cleanses hands without the need for soap and water. India currently has a problem with pollution in its water; we see this as an opportunity to increase our profits while also providing benefits that will help the Indian population achieve one of its strategic goals. Extensive research provides evidence that marketing Purell Instant Hand Sanitizer in could increase our profit margin as a company and allow us to grow our business. With a population over 1. 1 billion and limited competition; this market potentially could give us 5-7% growth each year for the next 7 to 10 years. Being that we are one of the first to enter this market, we will enjoy the benefits of being a pioneer in this industry. With such a huge market, we are hoping to have a 40% to 50% market share before additional competition start focusing on India. The purpose of this report is to recommend marketing Clean Hands, Inc product, Purell Instant Hand Sanitizer, in India. Purell Instant Hand Sanitizer is a portable supplement to routine hand washing. This is helpful because of all the diseases that are found in the waters of India. It is reported that 80 percent of disease that currently affects the people of India, is caused by unsanitary water and the lack of people washing or keeping their hands clean. Purell kills 99. 9percent of most common germs. Therefore, Purell is and effective tool that promotes proper health and prevents the spread of disease. In the documents to follow we are going to discuss the international business plan, which includes our policy commitment statement, our background analysis, our market research summary along with our action steps. Than we are going to go into detail about our marketing plan, which explains our method of entry into the market, as well as issues we might encounter.

An Improvement Over Classical Realism Politics Essay

An Improvement Over Classical Realism Politics Essay The neorealist theory of international relations has dominated world politics in the past century. It depicts an anarchic world where states are compelled to act in a certain manner because they are part of an anarchic international system. Although neorealism provides an appealing exposà © for the study of international relations and perceives itself to be an improvement over classical realism, it raises more questions than the answers it provides as I will show throughout this essay. Classical Realists believe that states are the main actors in international relations and they are power maximizers. As Hans Morgenthau, explains in Politics Among Nations, in a world where anarchy is the abiding principle, states will struggle for power because they are managed by policy makers and such is the nature of men. Other institutions and organizations are considered to play a small role but only within a state centric framework. States define international order as anarchic because there i s no central government to quell men’s search for power and their thirst to dominate others. In this eternal struggle peace is achieved through the balance of power, where states try to prevent one state from dominating all the others.   [ 1 ]    During the Cold War a new variant of Morgenthau’s theory appeared under the name of neorealism. The theoretical approach to international politics proposed by Waltz stresses the importance of structure and draws its arguments by applying an economic perspective to international relations. An approach Waltz claims to be more scientific than the one of Morgenthau and classical realism,which he considers to be â€Å"reductionist†. He argues so because it focuses on the subjective decisions of policy makers, and their search for power, as key in shaping the international system. A perspective that excludes the possibility of a structural analysis where the system is perceived to be independent and therefore plays an act ive role in determining state behaviour.   [ 2 ]    In a world still perceived to be anarchic, Waltz separates the internal circumstances of states from the external ones and claims that the international system is autonomous and acts as a whole. International order is shaped by a global structure, which is created by the interaction of states and then forces them into a certain modus operandi.   [ 3 ]   Whereas in Morgenthau the analysis of world politics focused on his negative view of human nature that compelled statesmen in an eternal search for power   [ 4 ]   , Waltz emphasizes the importance of the system in directing their actions. The introduction of the third image systemic analysis as the most important perspective to look at international politics is defined by three ordering principles: anarchy, the function of units and the distribution of capabilities.   [ 5 ]   Anarchy for neorealists is slightly different than for classical realists. As Shimko notes it, if for Morgenthau anarchy was important but merely circumstantial, for Waltz it is one of the defining elements of the system and acts as a â€Å"causal† force.   [ 6 ]   The concept of anarchy also differs in the sense that classical realists believe states search for power and most neorealists tend to advocate that states fight to survive. The outcome in both cases is an anarchic world but their origin is fundamentally different.

Can be any aspect of Urban Geology (Why geology is relevant in urban Term Paper

Can be any aspect of Urban Geology (Why geology is relevant in urban areas.) - Term Paper Example Geology is the science of study of solid Earth, and in particular, the rock formations to be found underneath a specific piece of land. Geology acquires new importance in urban areas as high-density populations are found in urban areas. Its relevance cannot be dismissed as many of modern-living or urban lifestyle problems can be solved or remedied by knowledge of the urban geology of a city, whether it is near the sea, a body of water like a lake, or a mountain that is also prone to environmental hazards like landslides and flash floods. Another example is the presence of underground water in urban areas where geology is important in building high-rise structures. Vital data and findings derived from geologic studies are very important in construction and engineering, such as where to best locate infrastructure projects like a pier, seaport or airport where there is underlying strength of the geologic materials to support such undertaking, prevent serious damage if there is an earthquake, and in general, make these structures safe so there will be no need to worry about the stability of these structures over the long term. Ignorance of these findings can have serious negative consequences like finding cracks on newly-built buildings. Land is a limited resource and so urban geology is used to determine the selection of the sites to build on. In highly-urbanized areas like the mega-cities of the world today, it is a must for engineers to have a firm grasp of urban geology to build the best structures they can possibly build, like very high structures comprising several floors upwards. The race to build the tallest buildings in the world are based on geology. Building upwards is the solution to limited land (reclaiming parts of the sea is also possible) as horizontal expansion is often not possible in most urban areas. An example is Hong Kong where many

Review of an exibition you have visited OR you book you have read of a Essay

Review of an exibition you have visited OR you book you have read of a design related - Essay Example Disney books features and images from the concept development stage which were never seen before. It is entirely about the encounters of a lady known as Ann in a journey .It is dedicated to the design, art and creation of † Frozen†. She was together with a man called Kristoff. The aim of their journey was to search for her sister Elsa who was believed to have icy powers that used to trap the kingdom of Arendelle in eternal winter. Ann and Kristoff were trying all the means and battled to save the kingdom. The book contains a lot of early graphical art designs such as pictures ( SOLOMON, 2013). The art of this book comes with Elsa’s coronation in the first chapter of the book. The book has different graphic designs and styles. Tones of art are packed well with the book having few character designs. The characters have complex costume designs which actually raise the graphics of the book. The second chapter called the wilderness brings to the reader a scene in the forest. There is a development of an art of different kinds of trees and how snow looks on them. There is again the art of Ann going through the forest to look for Elsa. There is also the graphics brought by the landscape of this scene. In the forest Ann comes across the owner of a certain shop which has a few color graphics ( DICKERMAN, 2011). Chapter three of this book is called â€Å"Ice palace.† It has various graphic designs of architecture and look of the ice palace. It contains beautiful early art graphic designs. After Elsa becomes the â€Å"Snow queen,† she changes her hair style and dress. The snow queen, the design ethos, the color theory and graphics, landscapes and the character designs gives the reader the promise of a well written book. Here a reader finds that the author has used graphics of color in the dress won by Elsa to portray to us her point of transformation ( LUXBACHER, 2006). The final chapter which is named, â€Å"The return to Arendelle, mainly has the art of Arendelle

Project Management applied to House Renovation Assignment

Project Management applied to House Renovation - Assignment Example This method is beneficial and purposeful when the subject is too complex to unravel which demands a web of discussion to correlate theories of engineering, architecture, economics, and performance management of its workers (Shuttleworth, 2008). As a case study, the discussion hopes to generate careful thought and accurate explication that would be helpful in the realization of the project (Shuttleworth, 2008). Limitations The researcher is limited to discuss only about house renovations and the significance of performance management in executing the project plan. The limitations is centered solely about the challenges of an organization in defining, measuring and motivating workers’ performance to make the work cost-efficient and effective (Hartog, Boselie, & Paauwe, 2004) following the organizational strategies in human resource management and of quality control standards (Hartog, et al., 2004). It will therefore consider all models that are considerate of key workers’ roles, functions, communication expertise, skills, perceptions— all of which are subject to managerial capacity and other related causality (Hartog, et al., 2004) of renovation and construction. The researcher is likewise limited by international standard of professional ethics in the conduct of research. Related Literature House renovation is an economic activity because this will involve the use of human and capital resources, thus, considerate on household income that will guarantee the full completion of the project (Plaut, et al., 2010; p. 462). It is also dependent on decisions made by the family—as the latter make some rational choice on engineering design and on renovation model it seeks to effect, as well as, the structure they wish to change. This is... This essay discusses house renovation as an economic activity because this will involve the use of human and capital resources, thus, considerate on household income that will guarantee the full completion of the project. It is also dependent on decisions made by the family—as the latter make some rational choice on engineering design and on renovation model it seeks to effect, as well as, the structure they wish to change. This is therefore inclusive of logistics analysis and the theoretical precepts governing decision-making relating to renovation because persons involved must be sensitized on the present value of property, the variables of demolition and reconstruction, and, the cost of the construction materials that will be utilized in renovation. These variables cover (a) personal and household variables; (b) housing variables, and (c) geographic variables. The first variables are inclusive of data and information of household’s demographic profiles such as the nu mber of residents of a specific home, their gender, status, nationality, and their economic status. The latter is significant to determine the credit quality of the household and in determining their level of accountability when such renovation falls within the market cycle when mortgage is of high interest rate. The second variable cover matters about the value of the house sought to be renovated with it’s anent tax, mortgage rate and its physical condition.

Carbon Footprint Auditing and Management Assignment

Carbon Footprint Auditing and Management - Assignment Example According to the Intergovernmental panel on climate change (IPCC), over the next century the earth will experience an average increase of 3.0 to 11 degrees Fahrenheit. This revelation, alongside other credible projections, call for consolidated efforts in mitigating global warming and climate change, adopting necessary remedial measures, and coping strategies, especially for the poor societies (Mark, 2005:173). A recent estimation by the United Nations Environmental Programme (UNEP) indicates that households account a well over 30% of the carbon emissions in to the atmosphere every single day. It is against this background that putting measures in place to curb carbon emissions at the individual and house hold level is critical to all members of the society. Through the various energy usages in the house, the annual average carbon footprints stand at 5.89 tons of carbon. This is way above the national average of 4.46 tons per household. In simple terms, my operations at the house hav e resulted to the emission of these tones of carbon, into the atmosphere every year. With the recognition that carbon compounds, especially carbon oxides, are leading causes of the green house effect and the resultant global warming, this is an alarming rate of carbon emission, resulting from a single person. 1.2 Diagnostic Base-line Energy usage for the various activities in the house is the greatest carbon footprint source. Although the house uses electricity, which does not directly contribute to carbon emissions, it indirectly contributes to carbon emission. This occurs during the production of electricity at the power plant. The turbines that produce the electric power run on diesel generators, where as the distribution, step up and step down functions, are all depended on carbon producing fossil fuels. Therefore, any use of electric energy in the house contributes to carbon emissions in a significant direct and indirect manner (Charles, 2011: 45). After a careful analysis of t he processes and activities that dominate my carbon footprints, energy usage within the house is the leading activity, with conservation and efficiency measures lagging behind. In everyday, routine operation, revolving around cooking, ironing, electronics, and lighting have a profound effect on the amount of energy that the I spend in the house. Further, routine use of electric powered gadgets like the blower, the lawn mowers, and the washing machine also contribute to the high energy figures at the end of the month. This is made even higher by the heating of the house during the cold seasons, and the use of power to run the cooling systems during the hot weather days (Sarah, 2008: 39). Since all these energy-uses are pertinent, the focus turns to efficiency, conservation and green energy technologies, to contain the energy usages, and reduce carbon footprints. The first step will was to change the lighting system in my house, since all the bulbs in place utilize a lot of energy. Al so,

Corrections Corporation of America Company Essay

Corrections Corporation of America Company - Essay Example Ethical Factors The ethical factors surrounding the current changes in the justice and correction departments in the US regard the moral consequences and the general good of the nation. The early release of incarcerated individuals may have an impact on the recidivism and security of the country at large. Rehabilitation and correctional efficiency of criminals reduces even with an increase of cost in public prison facilities. The effect of the current state policies affects all individuals, from individual citizens to the individuals incarcerated. Company’s Current Strategy The CCA is planning to expand its market to Europe and other countries. In Europe, the market for private prison services in increasing, a change attributed to the changing justice policies in those nations. In the US, the company has remained behind its competitors in expansion, preferring to wait for clarity on the current situation and its expected-persistent duration (Tella and Winig, 2010). The current adoption of cost control policies by states will result in leniency in law and justice, which will further result in increase in crime nationwide. Additionally, CCA suffers economically if its correction facilities do not maintain an acceptable level of incarcerated criminals. ANALYSIS EXTERNAL ANALYSIS The history of private prison industry dates back to 1984, with CCA taking over the management of a prison facility in Tennessee. The company has since grown to become the leader in the industry, commanding nearly 50% of the prison beds under private correctional services (Tella and Winig, 2010). Industry Structure & Trends The private prison services industry offer correctional services to the nation, the main customers being federal and state... The paper tells that the history of private prison industry dates back to 1984, with CCA taking over the management of a prison facility in Tennessee. The company has since grown to become the leader in the industry, commanding nearly 50% of the prison beds under private correctional services. The private prison services industry offer correctional services to the nation, the main customers being federal and state governments in the US. These companies work on a contractual basis, typically three to five years, but most of the contracts incorporate clauses that allow the government to terminate their agreement. The growth of the industry depends on a number of uncontrollable factors, which include sentencing patterns in different jurisdictions, crime rates, and acceptability of prison services privatization. Specialists in the industry argue that business is headed downwards for new comers as more states try to reduce prison overcrowding and expenses. According to the article, almost half of the new inmates were sent to private prison facilities in 2009. The article cites one analyst suggesting that established firms in the industry who have focused on their competencies will continue to grow despite the budget crisis. The policies regulating private prison use varies from state to state, with some states banning the private prison altogether, like New York, Louisiana, and Illinois. Outside the US, privatization of prison services has not been embraced fully. Nonetheless, countries, especially in the European region, are adopting the system, with Australia having a record 17%.

Organisational behaviour Essay Example | Topics and Well Written Essays - 2000 words - 1

Organisational behaviour - Essay Example In this context, it could be expected by OSM to show flexibility and positive thinking when having to support innovation in her department. Instead, the response of OSM to the initiative developed by the Director of Administration (DoA), i.e. the replacement of the College’s existing photocopying machines with new ones of advanced technology, has set the relevant project into severe risk. Indeed, as noted in the case study, the OSM seemed to have doubts for the necessity of the new machines from the beginning, meaning the time point when the DoA announced to the OSM her decision to order these machines. Even if the OSM has not made clear her thoughts in advance, she negatively influenced the members of her team in regard to the new machines. At the same time, the replacement of existing photocopying machines has been made for increasing the performance of the OSD, thus for responding to a critical need of that department. However, the negative attitude of OSM has affected the behaviour of all members of OSD. The resistance to change has been so strong that the new machines failed in meeting the targets set by the DoA. The problems related to the low performance of the new machines seem to be related to the inability of OSM to respond to the psychological contract developed between her and the organization (Mullins 2013). In the context of this contract the OSM would feel as responsible to secure the success of all organizational plans, including the project initiated by the DoA. Having to face the opposition of OSM towards the specific project the DoA could focus on increasing the motivation of OSM, and of the members of OSD, in regard to the particular plan. 2a) The lack of motivation in the OSD could be explained using the Attributions Theory of Kelly. In general, the particular theory refers to the perceptions of individuals in regard to the factors that influence the behaviour, meaning both own

MGMT499 U3IP Research Paper Example | Topics and Well Written Essays - 500 words

MGMT499 U3IP - Research Paper Example 1. Monitoring performance is graded as mediocre level because this is linked with all employees and it cannot be managed by one person properly. Influences of various persons as supervisor in this matter are the cause of complex and trouble for determination of commerce. 2. Setting fair standard is categorized as average level because this procedure is performed by all relevant persons with exactness and accuracy. People can make their life pleasant with this technique because this is cause of better performance in the community. 3. Quality overview is graded high because this is observable in the market and public opinion is favorable in this matter. People can make their businesses successful by realization of quality matters that are essential for business sensation. 4. Measuring performance is categorized as poor because its determination is not easy and simple. Authorized people are not performing their duties accurately as they are unable to measure performances with exactness and success. 5. Average grading is awarded for strategies to improve performance criterion. The major cause of this grading is mentioned as everyone like to make performance level better in the market but implementation of recommendations is not performed by all people. 6. Production decision criterion is graded as mediocre because professionalism demands to all people to present better products in the market. This status is also involved in the sensation of business because this is major cause of attaining customer attraction. 7. Pricing decision criterion is shown with average level because this is managed proper consideration of market status. This is confirmed that those people which have running their business plans with average level are managed with market status that is highly influenced in pricing matters. 8. Average level is assigned for input & output decision criterion because a common running of business is based of

Deviant Behavior Emergence Essay Example for Free

Deviant Behavior Emergence Essay Deviancy has been defined as the actual shift from a standard-norm conforming behavior towards a direct behavior alteration that is not accepted by society or viewed as unacceptable by the minor cultures. People who engage in defying acts are seen as having low self-control. They engage in many conventional behaviors, but due to low self-control, they are predisposed to committing deviancy if opportunities arise. This explanation explains all types of deviant behavior (Hunter Dantzker, 2005 p. 53). Deviant behaviors are deemed to arise out of environmental etiologies that stimulates the intrinsic character of an individual, which in the end, results to behavioral deviation. Such scenario is evident in specific events in life that most of the time due to adaptation and societal strain implicated in these deviating individuals (Holmes, Maahs Vito, 2007 p. 67). Discussion Adaptation is one of man’s greatest capacity and need in order to survive the ever-changing structure of the society. Such change causes strains through events or environmental stressors that facilitate as an alarm for adaptation to begin, which, consequently, cause deviancies (Hunter Dantzker, 2005 p. 153; Holmes, Maahs Vito, 2007 p. 77). Such causation is better explained by the theoretical angles of strain theory, which connotes the contribution of societal strain and pressure. The socio-cultural domain of every individual recognizes the absolute need to adapt to strains in order to progress to success or conditions of fulfillment (Siegel Senna, 2004 p. 14). Strain theory talks about the causation of crimes not directly because of strain but due to failure in tolerating these kinds of stimuli. They are both result of negative impregnation of environmental pressures that in the end leads the client vulnerable to breakdown (Holmes, Maahs Vito, 2007 p. 67-68). The theory suggests that a person performs acts of deviancy not because of attachments or relationships but rather because of the pressuring strain. In criminological perspective, the crime rates, according to this theory, justify the increased criminal persona in places wherein financial depression or extreme difficulties are present (Siegel Senna, 2004 p. 314). The last resort of the individuals is nothing but to commit crimes. In an example given, a person is ready to kill just to get the material possession that the person wants to acquire (Holmes, Maahs Vito, 2007 p. 67). In all cases, the behavior emerges from a sequence of structural conduciveness, structural strain, generalized beliefs, precipitating factors, mobilization for action, and the breakdown of social control. Structural strain is loosely defined as ambiguities, deprivations, conflicts, and discrepancies in social structure. If in case strain does provoke collective behavior (e. g. panic, crazes and fads) in the context of other determinants, deviant behaviors result, which involves a short-circuiting of levels of social action that gives it a crude, excessive, eccentric, or impatient quality (Snow, Soule and Kriesi, 2004 p. 50). Structural strain theory traces the origins of deviance to the tensions caused by the gap between cultural goals and the means people have to achieve these goals. In society, culture establishes goals for people; social structures provide, or fail to provide, the means for people to achieve those goals. If the means to achieve goals are out of balance, deviant behavior is the result (Andersen and Taylor, 2006 p. 174) In the United States, most people place a high value on the culturally valued goal of economic success and social mobility. Americans tend to believe that anyone can achieve success-that is, they believe that all people, regardless of the circumstances into which they are born, can achieve affluence and stature (Ferrante and Wallace, p. 37). In the case wherein, a depressed community is surrounding a person, significantly full of drug addicts and negative and influencers, a person still strives to obtain moral life in spite of community pressures and sociological influence. Let us say that this person has been given a good working opportunity as well as good family relationships, the person might still withstand the implicating strain imposed by the negative environment and progress to success (Kendall, 2006 p. 213). The driving force utilized by the individual is the positive reinforcement obtained from the home environment and/or the natural desire of the individual to succeed. It is very much justified by the state of mind involved and utilized by the individual, which provides the driving force and enables adaptation to stress (Holmes, Maahs Vito, 2007 p. 67; Kendall, 2006 p. 213). However, if the positive reinforcements break down and add up to strain, which consequently causes failure to succeed and adapt on the goals imposed, deviancy arise due to structural strain manifested in collective behaviors. Conclusion Every society presents every individual with varying stress, which involves internal and external stressors. Such conditions facilitate stress and act as the primary strain, which implicates the need for adaptation towards the implicating societal pressures. The study concludes that deviant behavioral patterns arise if such adaptive goals are not meant due to structural strain, which is evident among American society.

The Great Patriotic War, Cold War, WWII Alliances Essay Example for Free

The Great Patriotic War, Cold War, WWII Alliances Essay The Great Patriotic War: The great Patriotic War is a term used in Russia or previous parts of the Soviet Union when referring to a part of the Second World War. It had originally been used first under the French invasion led by Napoleon and when referring to the First World War, before it again was used. The name represented fighting for your homeland. The Great Patriotic War (GPW) were during the German Occupation of the USSR, which lasted from 22nd of June1941, until 9th of May 1945. The Soviet term only refers to the war between USSR and Nazi Germany and its European allies on the east front were Germany had approximately 200 divisions. It does not refer to the war on the Western fronts, the war in Japan, The Soviets attacks on Finland and Poland, The 1940 invasion of the Baltic states or the 1941 invasion of Iran. The occupation of Russia or  «Operation Barbarossa » is the biggest military operation ever completed, both in manpower and in casualties. It had been one of the main goals for Hitler since the start of the Nazi Party in the beginning of the 1920s. In 1932 Hitler and Stalin signed a nonaggression pact, but Hitler only saw this as a good tactical maneuver. During the Germans time in Soviet they wanted to put a stop to communism and at the same time get rid of everyone that were a threat toward German power in Eastern Europe. Soviet refused to collapse, even though the Nazis had expected a rapid fall. Germany kept trying to push over Soviet so it would collapse, but Soviet knew how to use the surrounding to their advantage. Breakdown of wartime alliance: By the end of the Second World War, there were three main victors, Britain, The United States and the Soviet Union. At the start of the Second World War, this, Big Three, had one united goal; to bring down Germany, as it was threatening both the Capitalist West and Communist East. However, even though all three leaders; Churchill, Roosevelt and Stalin were allies in their goal, it does not mean that their relationship was a happy one, but they had to work together to defeat the Nazi Germany regime. After Germany was defeated, The Big Three met up on several occasions to deal with the aftermath of the war. At this time, their true motives came to be shown. Even during the war, there was already underlying tensions between the East and West countries, but they were forced to cooperate. As soon as their mutual enemy was defeated, tensions rose. The East and West had two completely different ideologies, which would present itself as a issue. The West supported Capitalism, based on free elections and the freedom of speech. In contrast, the East supported Communism. This comprised of a dictatorship, led by Joseph Stalin, lack of freedom of speech and essentially the government controlling peoples lives. There were mistrusts which ranged back to the 1918, that contribute to the breakdown of the Alliance. The West had felt that their values, freedom and Capitalism were being threatened by Russia. Stalin believed that is Communism was to be successful, and then a worldwide revolution would have to take place, meaning the collapse of Capitalism. Cold War: After World War II, Joseph Stalin saw the world as divided into two camps: imperialist and capitalist regimes on the one hand, and the Communist and progressive world on the other. In 1947, President Harry Truman also spoke of two diametrically opposed systems: one free, and the other bent on subjugating other nations. After Stalins death, Nikita Khrushchev stated in 1956 that imperialism and capitalism could coexist without war because the Communist system had become stronger. In October 62 the Cold War came the closest to being a hot war. USSR put up land based missiles in Cuba, because the US had many times tried to stop the communistic revolution there. They were close enough to hit the US and are known as the Cuban missile crisis or the October crisis. This were their first treat of mutual destruction. Also the coup de etat in Czechoslovakia in 68 and the Soviet satellite states were a treat towards the US. The Cold War were all the time driven by the Arms Race between the two super powers. They fighted over who could make powerful weapon and have the biggest military the fastest. The US took the first lead when they developed the atom bomb. After keeping on it for over a decade the two states agreed upon a settlement stating how big military forces they each were maximum allowed to have. Also Chine were added into this agreement as they also became Communistic after the Second World War. There were two hot wars during the Cold War. The war in Korea and the war in Vietnam. They both had a few similarities; both a country were the state had been split in two. The Northern parts were communistic and the south were non-communistic. In both wars the north part of the state tried to invade the south to make them communistic with the help from Soviet and China. The US helped both south part of the states defend themselves, in Korea the defense were sucsessful and they are today two seperate states, wile as in Vietnam its still today one communistic nation.

Effect of Wishing Good Luck on Performance

Effect of Wishing Good Luck on Performance Running head: WHY DOES WISH WORK Does the wish work because of a specific superstitious belief or because the wish is a positive sentiment? Suellen, Hei Lon Kong Abstract The present research examined whether the wish worked because of a specific superstitious belief or because the wish was a positive sentiment. Individuals (N=241) were being put into three different conditions: Good luck with prize draw, Good luck with task and No wish after being informed that they would be entered into a lucky draw. It was hypothesized that wishing participants â€Å"good luck† with the word puzzle will give better performance at the puzzle than nothing. We predicted that their belief in luck (specific superstitious belief) for the prize draw should not affect word puzzle performance. However, if the phrase â€Å"good luck† generates a better mood, a higher level of self-esteem or other factor in the individual, it should be effective. The results indicated that there was no significant difference in the word puzzle score between the three conditions. This research showed that wish did not affect the participants’ performance in the word puzzle test. Introduction Walking under ladders, opening umbrellas indoors and breaking mirrors are all actions that are believed to bring unfortunate; it seems people are just as superstitious when it comes to bringing about good luck too. People also create their own superstitions and rituals in the belief it will change their fortunes. Nearly 6 millions of people in UK admit to being superstitious. Why do people believe in things that cannot be explained and what leads to superstitious behavior? Most conceivable reason is that it is individuals fear of the unknown that drives them to believe in superstitions. External locus of control from own cultural beliefs is another potential explanation to superstitious behaviors. Media also plays an important role in reinforcing superstitious beliefs such as horror movies, it is a powerful source that makes superstition exist in the world, e.g. ghost, supernatural experiences. Superstitious is often defined as excessively credulous belief in and reverence for the supernatural. It can also be defined as, irrational beliefs, especially with regard to the unknown according to the Collins English Dictionary. Professor of the Public Understanding of Psychology at the University of Hertfordshire, Richard Wiseman, once said People can create luck and good fortune by changing their outlook on life, focusing on grabbing opportunities and creating positive expectations. He also believe that some people actually want to be unlucky because it helps them to avoid taking responsibility for their own failings, actions that turn out to be harmful, immoral, or stupid. Superstitious behaviour can also be caused by intuitive thinking that is gained through past experiences. In support to this, researchers had carried out research on pigeons, superstitious actions that are by chance co-occur with the expected outcome, and subjects continue to appear to do so through conditioning process. This shows that stimulus has reinforcing value and can set up superstitious behaviour. (Skinner, 1948) There are negative and positive consequences in superstition. In the traditionally unlucky ghost month (July) in Taiwan, the evidence points to reduced fatalities by drowning. (Yang et. al 2008) It seems that being superstitious can sometimes be a positive thing as some superstitious beliefs prevents fatal accidents like the research I mentioned above (Yang et al 2008). Kevin Abbott, a biologist at Carleton University in Ottawa said, â€Å"From an evolutionary perspective, superstitions seem maladaptive, It plays an important role in human evolution which affects human behaviour. On the other hand, superstitious has its own negative consequences too. In situations over which people have no control (lotteries), superstitious behaviours are a waste of time. However, when some level of control does exist —such as car accidents — the consequences may be more negative than this. There is some evidence for increased car accident rates on Friday 13th relative to other Fridays, though it is argumentative. (Scanlon et al., 1993; N ¨ayh ¨a, 2002; Radun Summala, 2004) It is believed that it is the distraction caused by anxiety as the presumed mechanism. The goal of this research is to test whether wishing participants â€Å"good luck† with the word puzzle will give better performance at the puzzle than nothing. The method of research for this study will be a distribution of a word puzzle generated by the experimenter to the Warwick Undergraduates and their families and friends. The question is whether wishing them â€Å"good luck† with the prize draw will affect their puzzle performance. Gender and age data will also be collected. Looking at the data examined and studied so far are the following proposed predictions: If there is a specific superstitious belief in invoked, it should not be effective: Their belief in luck for the prize draw should not affect puzzle performance. If, however, the phrase â€Å"good luck† affects a more general mood, self-esteem or other factor in the individual, it should be effective. Method Participants For this research, 241 participants took part which included Psychology Undergraduates from University of Warwick and their families and friends( Undergraduates from other departments in Warwick) from 17 through 45 (M= 19.49, SD= 3.15). The participants consisted of 110 females and 131 males. They were not volunteers or getting paid. The department of Psychology in Warwick decided there would be a  £50 Amazon Voucher lucky draw for all participants after they had completed the word puzzle (only for Warwick students outside of Psychology). Designs The independent variable in this research was the condition participants were put in Good luck with prize draw, Good luck with task and No wish. The dependant variable was the number of words they got from the word puzzle. It was an independent Measures ANOVA (Between Subjects ANOVA) with three groups and one condition. Materials An informed consent sheet with Word Puzzle which consisted letters such as: U E P C I I L O S U R T attached at the back. Procedure The study began by gaining the participants consent which they signed and put down their email address and personal information such as age, sex on the consent form. Participants were informed that once they had completed the experiment, they would be entered into a random prize draw with other participants for a  £50 Amazon voucher. As the offer only opened to Warwick student outside of Psychology, the department would use their contact address to check that whether they were eligible and to contact them if they won. In this experiment, participants were allocated to three different conditions: 1: Good luck with prize draw, 2: Good luck with task and 3: No wish. In the first condition, experimenter would wish them good luck on the prize draw before they began to complete task. In the second condition, experiment would wish them good luck on the task and in the third condition, the experimenter would say nothing and let them begin. They were required to complete the word puzzle, to create as many English words as they could from the set of letters: U E P C I I L O S U R T. They were only allowed to use a letter twice if it appeared twice in the list that was in the case: I; they were asked to complete the task within two minutes. Following completion of the task, experimenter would note condition (e.g. 1, 2, 3). The experiment were completely anonymous, instead of names, we used numbers to identify the participants. All data would remain strictly confidential. Participants were then debriefed at the end and were told that they had the right to withdraw any consent given, and to require that their own data such as the score they got from the task, their email, be destroyed. Results The mean and standard deviation of the scores for condition â€Å"Good luck with prize draw† was (M=14.1, SD=7.6), Condition â€Å"Good luck with task† was (M=15.2, SD=8.1) and Condition â€Å"No wish† was (M=14, SD=6.5). There was no significant difference between the three wish groups as determined by one-way ANOVA in the ability of getting higher score in the word puzzle. (F (2,238) =0.682, p > .05). A Tukey post-hoc test revealed that the score gained from the participants have no significant difference in the condition â€Å"Good luck with prize draw (14.1  ± 7.6, p = 0.616) and the condition â€Å"No wish† (14.0  ± 6.5, p = 0.536) course compared to the condition â€Å"Good luck with task† (15.2  ± 8.1). There was no statistically significant differences between the condition â€Å"Good luck with prize draw† and the condition â€Å"No wish† (p = .990). Discussion Our hypothesis was that wishing participants â€Å"good luck† with the word puzzle will give better performance at the puzzle than nothing. The data obtained did not support our hypothesis as there was no significant difference in the score from the three conditions. In this study, we used the one-way analysis of variance (ANOVA) to determine whether there are any significant differences between the means of three independent variables (the three conditions). Although the one-way ANOVA could not tell us which specific groups were significantly different from each other, it tells us that at least two groups were different. Age differences was an issue in this research, the fact that the participants’ age ranged 17-45. As we grow older, we would know more words than we did when we were younger. Age of the respondents seemed to better explain some ethical differences among respondents in some situations. This is in line with earlier research that found that people tend to be more ethical as they grow older (Weber and Green, 1991;Terpstra et al., 1993). It is not appropriate to use participants that have a large range in age. Our findings can be generalised to the whole populations as there is no significant difference in the score in the three conditions. In this research, we would say that the wish does not affect the puzzle performance because of a superstitious belief as proved by the results. In the future research on this topic, researchers should use participants that have similar age to make it an ethical test and that wish does not work of a specific superstitious belief or because the wish is a positive sentiment. References BBC. (2010). Superstitions: Friday 13th unlucky for you? . Available: http://www.bbc.co.uk/worldservice/learningenglish/newsenglish/britain/superstitions.shtml. Last accessed 9th Feb 2014. Berrill,A. (2012). Isnt it all pants? One in six superstitious Brits refuse to walk under ladders, while over 800,000 admit to having lucky underwear. Available: http://www.dailymail.co.uk/femail/article-2230328/Britons-superstitions-Walking-ladders-breaking-mirrors-opening-umbrellas-indoors.html. Last accessed 9th Feb 2014. Landrum, R. Eric. (2008). Undergraduate writing in psychology : learning to tell the scientific story. Washington, D.C. : American Psychological Association. p.57-p160. Mills, C. (2011). Superstitions Have Evolutionary Basis. Available: http://www.livescience.com/14504-superstitions-evolutionary-basis-lucky-charms.html. Last accessed 10th Feb 2014. Sidani,Y., Zbib,I., Rawwas,M.,Moussawer, T. (2009). Gender, age, and ethical sensitivity. Gender, age, and ethical sensitivity: the case of Lebanese workers. 24 (1), 211-227 Tavris, C., Aronson, E. (2008). Mistakes were made (but not by me) : why we justify foolish beliefs, bad decisions, and hurtful act. Orlando, Fla.: Harcourt. p1-57.

internet government control :: essays research papers

In the 21st century we live in an economy, relatively unhindered by the government, a policy called â€Å"lassier faire† which allows the market to run without the government’s control. Although there is a certain invisible hand that the government posses to ensure that monopolies, or any of the harmful businesses are being operated to ensure safety for the average citizen. â€Å"Napster† founded by Shawn Flanning is a web site which can be joined on any home computer with access to the internet, where there after can trade and download virtually any song that person desires. For this simple reason this website is under attack from lawsuits coming from the music industry.   Ã‚  Ã‚  Ã‚  Ã‚  Musicians are at the head of the charge aimed against Napster for the exploitation of their music. A panel of U.S circuit of appeals that are a panel of judges ruled that Napster is in a violation of copyright infringements. It is a way to receive music without actually purchasing it and some many companies feel for the loss of revenues Napster should pay royalties or seize to exist. The RIAA, which represents many record companies, filed a federal lawsuit against Napster just months after the song trading website began in 1999. The lawsuit claims that Napster could rob the music industry of billions of dollars in lost profits.   Ã‚  Ã‚  Ã‚  Ã‚  In defense against the courts, and angry musicians founder Shawn Flanning has stated â€Å" any decision the courts decide to enforce will be heavily matched with appeals to keep Napster going† according to the NY times. Also quoted saying â€Å"Napster works because people who love music share and participate, people said it wouldn’t survive Page 2 when there was only 700,000 users, and again when there was 17,000,000 members, now today we have more than 50 million members, and we’ll find a way to multiply and stay around†.   Ã‚  Ã‚  Ã‚  Ã‚  The court found that Napster had infringed upon copyright holders’ rights to control the reproduction and distribution of their music, also stating that the recording industry would likely prevail. Having the preliminary injunction smack on Napster last July only to overturned being found to be â€Å"overbroad† and must be redrawn.

Decline of Indian Southwest Essay -- Native Americans History Papers

Decline of Indian Southwest Lord Acton said, â€Å"The most certain test by which we judge whether a country is really free is the amount of security enjoyed by its minorities.† In the late 1800’s the security of the minorities in the southwest was in serious jeopardy. For the Apache’s the security was promised but rarely upheld by the American government. The minimal security the Navajo enjoyed vanished by 1846. Men like Kit Carson desired but often failed to maintain the peace and security for these Indian tribes. Kit Carson’s actions and the actions of others began the deterioration of the Indian culture in the southwest. The decline of the Indian southwest was caused by the idea of Manifest Destiny, which led to Indian confinement to reservations and the decline of Native American society. The idea of Manifest Destiny led the Americans to war with Mexico. In 1846, America gained control of what is now the Southwest. With this acquisition, America inherited years of Navajo-Mexican warfare. The Mexicans became American citizens; the Natives, being Indians, did not. Therefore, Indians were punished for attacks on Mexicans but not vice-versa (Brown 14). General Stephen Watts Kearney put it this way, addressing the Mexicans: 'The Apaches and the Navajos come down and carry off your sheep and your women whenever they please. My government will correct all this. They will keep off the Indians, protect you in persons and property " (L. Bailey 2). American officials, in an attempt to halt conflict between the Indians and the new settlers, prevent expensive wars, and open up lands to white settlers, created reservations for the Indians, crowding the Indians into areas and constricting them from finding or growing food. Wi... ...hwest might still thrive today. Bibliography Bailey, Lynn. The Long Walk. Pasedena: Socio-Technical Books, 1970. Brown, Dee. Bury My Heart At Wounded Knee. Chicago: Holt, Rinehart and Winston, 1970. Debo, Angie. Geronimo The Man, His Time, His Place. University of Oklahoma Press, 1976. Hurtado, Albert L, ed. Major Problems in American Indian History. Lexington, Massachusetts, D.C. Heath and Company, 1994. Quaife, Milo Milton. Kit Carson’s Autobiography. University of Nebraska Press, 1935. Simmons, Mark S. â€Å"Kit and the Indiansâ€Å" University Press of Colorado, 1996. Treaty of Guadalupe Hildago, 1868. Utley, Robert M. The Indian Frontier of the American West 1846-1890. Albuquerque: University of New Mexico Press, 1984. White, David. It’s Your Misfortune and None of My Own: A New History of the American West. University of Oklahoma Press, 1991. Decline of Indian Southwest Essay -- Native Americans History Papers Decline of Indian Southwest Lord Acton said, â€Å"The most certain test by which we judge whether a country is really free is the amount of security enjoyed by its minorities.† In the late 1800’s the security of the minorities in the southwest was in serious jeopardy. For the Apache’s the security was promised but rarely upheld by the American government. The minimal security the Navajo enjoyed vanished by 1846. Men like Kit Carson desired but often failed to maintain the peace and security for these Indian tribes. Kit Carson’s actions and the actions of others began the deterioration of the Indian culture in the southwest. The decline of the Indian southwest was caused by the idea of Manifest Destiny, which led to Indian confinement to reservations and the decline of Native American society. The idea of Manifest Destiny led the Americans to war with Mexico. In 1846, America gained control of what is now the Southwest. With this acquisition, America inherited years of Navajo-Mexican warfare. The Mexicans became American citizens; the Natives, being Indians, did not. Therefore, Indians were punished for attacks on Mexicans but not vice-versa (Brown 14). General Stephen Watts Kearney put it this way, addressing the Mexicans: 'The Apaches and the Navajos come down and carry off your sheep and your women whenever they please. My government will correct all this. They will keep off the Indians, protect you in persons and property " (L. Bailey 2). American officials, in an attempt to halt conflict between the Indians and the new settlers, prevent expensive wars, and open up lands to white settlers, created reservations for the Indians, crowding the Indians into areas and constricting them from finding or growing food. Wi... ...hwest might still thrive today. Bibliography Bailey, Lynn. The Long Walk. Pasedena: Socio-Technical Books, 1970. Brown, Dee. Bury My Heart At Wounded Knee. Chicago: Holt, Rinehart and Winston, 1970. Debo, Angie. Geronimo The Man, His Time, His Place. University of Oklahoma Press, 1976. Hurtado, Albert L, ed. Major Problems in American Indian History. Lexington, Massachusetts, D.C. Heath and Company, 1994. Quaife, Milo Milton. Kit Carson’s Autobiography. University of Nebraska Press, 1935. Simmons, Mark S. â€Å"Kit and the Indiansâ€Å" University Press of Colorado, 1996. Treaty of Guadalupe Hildago, 1868. Utley, Robert M. The Indian Frontier of the American West 1846-1890. Albuquerque: University of New Mexico Press, 1984. White, David. It’s Your Misfortune and None of My Own: A New History of the American West. University of Oklahoma Press, 1991.

Aristotle: His Messages of Virtue and Moderation in Politics :: essays papers

Aristotle: His Messages of Virtue and Moderation in Politics Aristotle (b. 384 - d. 322 BC), was a Greek philosopher, logician, and scientist. Along with his teacher Plato, Aristotle is generally regarded as one of the most influential ancient thinkers in a number of philosophical fields, including political theory. Aristotle was born in Stagira in northern Greece, and his father was a court physician to the king of Macedon. As a young man he studied in Plato's Academy in Athens. After Plato's death he left Athens to conduct philosophical and biological research in Asia Minor and Lesbos, and he was then invited by King Philip II of Macedon to tutor his young son, Alexander the Great. Soon after Alexander succeeded his father, consolidated the conquest of the Greek city-states, and launched the invasion of the Persian Empire. It was in this environment that Aristotle's' views and ideas of politics developed. As Alexander's teacher, Aristotle had a close tie to the political powers of Athens. Because of this tie Aristotle wrote Politics as a guide to rulers as to how to govern a country. In Politics Aristotle lays out his ideal form of Government. It contains thought provoking discussions on the role of human nature in politics, the relation of the individual to the state, the place of morality in politics, the theory of political justice, the rule of law, the analysis and evaluation of constitutions, the relevance of ideals to practical politics, the causes and cures of political change and revolution, and the importance of a morally educated citizenry. He stressed that the ideal citizen and ruler must possess certain virtues, such as wisdom, temperance and courage. And the work as a whole echoes Aristotle's dominant theme of moderation. Politics is an excellent historical source because of the close tie Aristotle had to the everyday business of government in Athens. It reflects the idealized values of the people and the influence of Aristotle's teacher Plato. The importance of wisdom and justice also directly parallel the classical Greek ideology. Aristotle believed that nature formed politics and the need for city-states (government) formed out of nature. Aristotle lays the foundations for his political theory in Politics by arguing that the city-state and political rule are "natural." The argument begins with a historical account of the development of the city-state out of simpler communities. Aristotle: His Messages of Virtue and Moderation in Politics :: essays papers Aristotle: His Messages of Virtue and Moderation in Politics Aristotle (b. 384 - d. 322 BC), was a Greek philosopher, logician, and scientist. Along with his teacher Plato, Aristotle is generally regarded as one of the most influential ancient thinkers in a number of philosophical fields, including political theory. Aristotle was born in Stagira in northern Greece, and his father was a court physician to the king of Macedon. As a young man he studied in Plato's Academy in Athens. After Plato's death he left Athens to conduct philosophical and biological research in Asia Minor and Lesbos, and he was then invited by King Philip II of Macedon to tutor his young son, Alexander the Great. Soon after Alexander succeeded his father, consolidated the conquest of the Greek city-states, and launched the invasion of the Persian Empire. It was in this environment that Aristotle's' views and ideas of politics developed. As Alexander's teacher, Aristotle had a close tie to the political powers of Athens. Because of this tie Aristotle wrote Politics as a guide to rulers as to how to govern a country. In Politics Aristotle lays out his ideal form of Government. It contains thought provoking discussions on the role of human nature in politics, the relation of the individual to the state, the place of morality in politics, the theory of political justice, the rule of law, the analysis and evaluation of constitutions, the relevance of ideals to practical politics, the causes and cures of political change and revolution, and the importance of a morally educated citizenry. He stressed that the ideal citizen and ruler must possess certain virtues, such as wisdom, temperance and courage. And the work as a whole echoes Aristotle's dominant theme of moderation. Politics is an excellent historical source because of the close tie Aristotle had to the everyday business of government in Athens. It reflects the idealized values of the people and the influence of Aristotle's teacher Plato. The importance of wisdom and justice also directly parallel the classical Greek ideology. Aristotle believed that nature formed politics and the need for city-states (government) formed out of nature. Aristotle lays the foundations for his political theory in Politics by arguing that the city-state and political rule are "natural." The argument begins with a historical account of the development of the city-state out of simpler communities.

The Rational Choice Approach

Whilst people all around the world debate over which political system is the most effective, social scientists are still in debate over which is the best way to analyse politics. Without the correct analysis of political objects how is one supposed to decide which political system or party is the most effective? It is for this reason that the way in which we analyse political objects is so important. There are many different ways to go about analysing politics. One main distinction to be noted is how in America the subject is called political science, whereas many European universities just call it politics.European scholars would suggest that the name political science is flawed in the sense that you cannot conduct certain political experiments. Rational choice theorists would suggest otherwise as I will explain later on in the essay. In a lecture delivered by Professor Mark Franklin at the European University Institute, he stated; â€Å"We cannot take a random sample of people and give them a new political system to see what happens† (Franklin, 2006). Debates such as these go far further than just cross-national. In this essay I intend to give a brief background to the various approaches to studying politics.I will then go on to outline the strengths and weaknesses of the rational choice approach to understanding the political, paying close attention to the definition of self-interest, using various scholars work to form a critique of the rational choice theory. The studying of politics can be dated back to the ‘Platonic era’ of ancient Greece, as early as 420 B. C. However, the departments of politics came much later. Within these departments one of the earliest forms of analysing politics was through the method of institutionalism. This involved the studying of institutions.Institutionalists looked at how institutions were formed, what they did and how they were structured. Rather than looking at philosophical questions, institutionalist s concentrated on normative questions. Institutionalism was criticised for its lack of rigour as it was mainly a descriptive process. Others called it elitist and described it as â€Å"clever people telling others about their own system† (Parvin, 2013). The 1930s saw the American way of thinking revised as a result of the increasing numbers of European scholars entering America.As a result of this, and with the growing criticisms of the conventional approach, analysis took a behavioural standpoint. At the same time of behaviouralism, rational choice theorists were in writing. However, it only flourished in the 1980s. Rational choice theory involves more questioning of peoples decisions and political objectives and was a lot less descriptive. Rational choice theory, first used in the field of economics, suggests individuals are rational and therefore act in their own self-interest. They do this by weighing up the costs and benefits of a situation.It also assumes individuals ar e rational meaning they do not act outside the norm. Another assumption is that individuals make their decisions whilst taking into account what other individuals do, or what they believe the other individuals will do. The first weakness of the rational choice theory I wish to analyse is the assumption that all individuals are self-interested. To tackle this it is important to define being self-interested. It is often defined as one gaining pleasure from an act. However, is an act still self-interested if the person gains pleasure from helping others?If your answer is no, then what if an act pleasures one’s self whilst helping others, but also putting others at a disadvantage. Is this now self-interested again? For example, when a pressure group member of ‘fathers 4 justice’ climbs a building to encourage politicians to allow him to see his child he would be seen as self-interested. On the other hand, he is doing it in order to care for his child and give him the correct up-bringing he needs. In this instance he may not be considered self-interested. On a further note, by climbing up said building police and other services would be called out to resolve the situation.This could lead to a delayed call-out for police to attend another crime scene, putting others at a disadvantage. Does this now make the act self-interested again? From this series example it is evident that there are usually several parties affected by a particular political movement or decision. It is also evident that upon making political decisions people often have multiple incentives which may involve benefiting ones self and benefiting others, making it extremely difficult to give determine if an act is self-interested or not.Furthermore, assuming it was possible to narrow down an act to being self-interested or not, it is  impossible to say every single person is self-interested. This is outlined by the ‘black swan theory’. This theory suggests that no ma tter how many white swans you see, you can never rule out the possibility of there being a black swan. One strength of the rational choice theory is that it offers an explanation as to why there has been a a dramatic decrease in political participation since the middle of the 20th century, as outlined in Colin Hay’s book ‘Why we hate politics’. For example, between 1950 and 2001 electoral turnout in the UK has decreased by 24.2% (Hay, 2008: 49).Decreases in electoral turnout doesn’t stop at the UK, since the middle of the 20th century lots of countries including of the OECD countries, bar two. This decrease in political participation may be as a result of voters weighing up the costs and benefits of voting and then coming to the conclusion the costs outweigh the benefits. People feel as if their vote would count for nothing and that one vote is highly unlikely to change who forms the government. Hay goes on to deliver this point of view in the equation of [Uchosen – Uother] p > Cvoting.In this equation [Uchosen – Uother] p represents the utility the voter receives if the party they vote for goes into power minus the utility received if the other party goes into power. Cvoting represents the cost of voting and the cost is always greater than the benefits to a rational individual (Hay, 2008: 50). This is further examined by Mancur Oslon in his book ‘The logic of Collective Action’. Oslon highlights how individuals do not participate, letting others put in the work and then reaping the rewards of having a strong government (Oslon, 1971).This has also been linked to the power of the minority and how they can choose to opt out of a trade union but still get the benefits, for example; an increasing wage rate. Both theories presented are easy to accept as they suggest strong explanations as to why there has been a decrease in participation. However, on a closer examination to the voting system, it may appear that there are more benefits to be earned from voting. Many people experience a feeling of pleasure from participating as they feel as if they have done a good deed.Which arguably, they have. Moreover, some people may experience a sense of pride as a result of doing something to help their country. Another point to take into account when weighing up the benefits of voting is that some people may genuinely enjoy the process. On the contrary, when weighing the costs it must be noted that the effort and inconvenience of voting isn’t the only cost in certain cases. Some individuals choose not to vote as they believe by voting they are accepting a certain party’s policies, whereas some people do not agree with any party.Others are anarchists who do not believe governments should exist. In this instance the cost would be far greater, providing further support for the rational choice theory. The rational choice theory has also allowed us to predict behaviour through its vigorous m ethodology. In the introduction I briefly mentioned the various views on whether or not politics can be viewed as a science. Although we may not be able to conduct experiments which involve observing people in different political systems, we can put them in situations to observe their decision making and relate it to the political.One experiment involving offering two bank robbers the opportunity to either stay quiet or hand over their accomplice saw individuals being rational. The best outcome was if they both stayed quiet and saw them both have reduced sentences, whilst if one stays quiet and the other hands the accomplice over, the accomplice will be sentenced with the one who handed him over going free. However, if they both handed each other over they would both have an increased sentence. This is part of game theory and is known as the prisoner’s dilemma. Being rational, the prisoners near enough always handed over their partner.Rational choice theorists would suggest t his can be transferred to the political arena by explaining that they would act with this level of self-interest in all situations, including within the political arena. Nonetheless, it is important to note that choosing between imprisonment and who governs are two completely different scenarios. To say that individuals would act the same in both situations with little evidence to show this is somewhat illogical. For example when confronted by a woman asking you for your wallet you may decide to refuse, but when she is holding a gun to your head your answer may change.The game show whereby similar outcomes are offered to two people but instead of prison sentences, the outcome is how much money they receive is evidence of how the answer depends on what is at stake. Within this show there were always different combinations of answers with both self-interested people and people willing to share. From this essay it is clear that there are many weaknesses. However, it should not go un-no ticed that one of the most influential factors that caused the increasing use of the rational choice approach was its vigour. Whilst other approaches offer mere descriptions, rational choice theory goes into deep questioning.Furthermore, the methodology is greater than any other with the use of experiments to allow for more precise, qualitative data to be recorded. On the other hand it could be argued that the use of rational choice approach ignores the study of institutions by focusing solely on the individual. All theories possess strengths and weaknesses. It is also apparent that different approaches may offer more concise measurements in different areas so it is important not to rely on one particular approach, but instead use a variety to allow for a more reliable analysis.Despite the outlined weaknesses, it has had much success in the field of economics. Some may argue that this means we should stick with it as a way of analysing politics. However, I fear that it is not plausi ble to simply transfer a theory from one subject to another, despite both being social sciences. This is due to the nature of politics being focused on equal distribution and fairness (in the vast majority of countries due to the democratic values resulting in a government for all the people).If people were as self-interested as the rational choice approach suggests then there would be a lot more extreme right-wing and left-wing parties present where the rich want to keep all of their money and the poor want as many benefits as possible. Instead we find a middle ground such as the liberal democrats in England. For this reason, it appears that the methodology does not compliment the ontology as no matter what experiments are carried out, none can be related to the political, as the European University Institute outlined. The Rational Choice Approach Whilst people all around the world debate over which political system is the most effective, social scientists are still in debate over which is the best way to analyse politics. Without the correct analysis of political objects how is one supposed to decide which political system or party is the most effective? It is for this reason that the way in which we analyse political objects is so important. There are many different ways to go about analysing politics. One main distinction to be noted is how in America the subject is called political science, whereas many European universities just call it politics.European scholars would suggest that the name political science is flawed in the sense that you cannot conduct certain political experiments. Rational choice theorists would suggest otherwise as I will explain later on in the essay. In a lecture delivered by Professor Mark Franklin at the European University Institute, he stated; â€Å"We cannot take a random sample of people and give them a new political system to see what happens† (Franklin, 2006). Debates such as these go far further than just cross-national. In this essay I intend to give a brief background to the various approaches to studying politics.I will then go on to outline the strengths and weaknesses of the rational choice approach to understanding the political, paying close attention to the definition of self-interest, using various scholars work to form a critique of the rational choice theory. The studying of politics can be dated back to the ‘Platonic era’ of ancient Greece, as early as 420 B. C. However, the departments of politics came much later. Within these departments one of the earliest forms of analysing politics was through the method of institutionalism. This involved the studying of institutions.Institutionalists looked at how institutions were formed, what they did and how they were structured. Rather than looking at philosophical questions, institutionalist s concentrated on normative questions. Institutionalism was criticised for its lack of rigour as it was mainly a descriptive process. Others called it elitist and described it as â€Å"clever people telling others about their own system† (Parvin, 2013). The 1930s saw the American way of thinking revised as a result of the increasing numbers of European scholars entering America.As a result of this, and with the growing criticisms of the conventional approach, analysis took a behavioural standpoint. At the same time of behaviouralism, rational choice theorists were in writing. However, it only flourished in the 1980s. Rational choice theory involves more questioning of peoples decisions and political objectives and was a lot less descriptive. Rational choice theory, first used in the field of economics, suggests individuals are rational and therefore act in their own self-interest. They do this by weighing up the costs and benefits of a situation.It also assumes individuals ar e rational meaning they do not act outside the norm. Another assumption is that individuals make their decisions whilst taking into account what other individuals do, or what they believe the other individuals will do. The first weakness of the rational choice theory I wish to analyse is the assumption that all individuals are self-interested. To tackle this it is important to define being self-interested. It is often defined as one gaining pleasure from an act. However, is an act still self-interested if the person gains pleasure from helping others?If your answer is no, then what if an act pleasures one’s self whilst helping others, but also putting others at a disadvantage. Is this now self-interested again? For example, when a pressure group member of ‘fathers 4 justice’ climbs a building to encourage politicians to allow him to see his child he would be seen as self-interested. On the other hand, he is doing it in order to care for his child and give him the correct up-bringing he needs. In this instance he may not be considered self-interested. On a further note, by climbing up said building police and other services would be called out to resolve the situation.This could lead to a delayed call-out for police to attend another crime scene, putting others at a disadvantage. Does this now make the act self-interested again? From this series example it is evident that there are usually several parties affected by a particular political movement or decision. It is also evident that upon making political decisions people often have multiple incentives which may involve benefiting ones self and benefiting others, making it extremely difficult to give determine if an act is self-interested or not.Furthermore, assuming it was possible to narrow down an act to being self-interested or not, it is  impossible to say every single person is self-interested. This is outlined by the ‘black swan theory’. This theory suggests that no ma tter how many white swans you see, you can never rule out the possibility of there being a black swan. One strength of the rational choice theory is that it offers an explanation as to why there has been a a dramatic decrease in political participation since the middle of the 20th century, as outlined in Colin Hay’s book ‘Why we hate politics’.For example, between 1950 and 2001 electoral turnout in the UK has decreased by 24.2% (Hay, 2008: 49). Decreases in electoral turnout doesn’t stop at the UK, since the middle of the 20th century lots of countries including of the OECD countries, bar two. This decrease in political participation may be as a result of voters weighing up the costs and benefits of voting and then coming to the conclusion the costs outweigh the benefits. People feel as if their vote would count for nothing and that one vote is highly unlikely to change who forms the government. Hay goes on to deliver this point of view in the equation of [Uchosen – Uother] p > Cvoting.In this equation [Uchosen – Uother] p represents the utility the voter receives if the party they vote for goes into power minus the utility received if the other party goes into power. Cvoting represents the cost of voting and the cost is always greater than the benefits to a rational individual (Hay, 2008: 50). This is further examined by Mancur Oslon in his book ‘The logic of Collective Action’. Oslon highlights how individuals do not participate, letting others put in the work and then reaping the rewards of having a strong government (Oslon, 1971).This has also been linked to the power of the minority and how they can choose to opt out of a trade union but still get the benefits, for example; an increasing wage rate. Both theories presented are easy to accept as they suggest strong explanations as to why there has been a decrease in participation. However, on a closer examination to the voting system, it may appear that there are more benefits to be earned from voting. Many people experience a feeling of pleasure from participating as they feel as if they have done a good deed.Which arguably, they have. Moreover, some people may experience a sense of pride as a result of doing something to help their country. Another point to take into account when weighing up the benefits of voting is that some people may genuinely enjoy the process. On the contrary, when weighing the costs it must be noted that the effort and inconvenience of voting isn’t the only cost in certain cases. Some individuals choose not to vote as they believe by voting they are accepting a certain party’s policies, whereas some people do not agree with any party.Others are anarchists who do not believe governments should exist. In this instance the cost would be far greater, providing further support for the rational choice theory. The rational choice theory has also allowed us to predict behaviour through its vigorous m ethodology. In the introduction I briefly mentioned the various views on whether or not politics can be viewed as a science. Although we may not be able to conduct experiments which involve observing people in different political systems, we can put them in situations to observe their decision making and relate it to the political.One experiment involving offering two bank robbers the opportunity to either stay quiet or hand over their accomplice saw individuals being rational. The best outcome was if they both stayed quiet and saw them both have reduced sentences, whilst if one stays quiet and the other hands the accomplice over, the accomplice will be sentenced with the one who handed him over going free. However, if they both handed each other over they would both have an increased sentence. This is part of game theory and is known as the prisoner’s dilemma. Being rational, the prisoners near enough always handed over their partner.Rational choice theorists would suggest t his can be transferred to the political arena by explaining that they would act with this level of self-interest in all situations, including within the political arena. Nonetheless, it is important to note that choosing between imprisonment and who governs are two completely different scenarios. To say that individuals would act the same in both situations with little evidence to show this is somewhat illogical. For example when confronted by a woman asking you for your wallet you may decide to refuse, but when she is holding a gun to your head your answer may change.The game show whereby similar outcomes are offered to two people but instead of prison sentences, the outcome is how much money they receive is evidence of how the answer depends on what is at stake. Within this show there were always different combinations of answers with both self-interested people and people willing to share. From this essay it is clear that there are many weaknesses. However, it should not go un-no ticed that one of the most influential factors that caused the increasing use of the rational choice approach was its vigour. Whilst other approaches offer mere descriptions, rational choice theory goes into deep questioning.Furthermore, the methodology is greater than any other with the use of experiments to allow for more precise, qualitative data to be recorded. On the other hand it could be argued that the use of rational choice approach ignores the study of institutions by focusing solely on the individual. All theories possess strengths and weaknesses. It is also apparent that different approaches may offer more concise measurements in different areas so it is important not to rely on one particular approach, but instead use a variety to allow for a more reliable analysis.Despite the outlined weaknesses, it has had much success in the field of economics. Some may argue that this means we should stick with it as a way of analysing politics. However, I fear that it is not plausi ble to simply transfer a theory from one subject to another, despite both being social sciences. This is due to the nature of politics being focused on equal distribution and fairness (in the vast majority of countries due to the democratic values resulting in a government for all the people).If people were as self-interested as the rational choice approach suggests then there would be a lot more extreme right-wing and left-wing parties present where the rich want to keep all of their money and the poor want as many benefits as possible. Instead we find a middle ground such as the liberal democrats in England. For this reason, it appears that the methodology does not compliment the ontology as no matter what experiments are carried out, none can be related to the political, as the European University Institute outlined.

Provides the following

A Study Guide, which provides the following: a. An orientation of each chapter, along with an outline of the important topics being addressed. B. Sample problems for the student to complete, with the worked-out solutions. C. Self-test questions (true/false and multiple choice) with answers. D. A tutorial on understanding the internal rate of return. E. An In-depth self-teaching supplement on capital-budgeting techniques. 2. Companion Website online study gulled for the student Includes true/false, multiple hooch, and short answer quizzes for each chapter.From my. Prenatal. Com/shown students can also access the Internet exercises, current events articles with questions, and Excel spreadsheets for the end-of-chapter problems. For the teacher: 1. A Test Item File provides more than 1600 multiple-choice, true/false, and short- answer questions with complete and detailed answers. It is designed for use with the Prentice Hall Custom Test, a computerized package that allows users to custom design, save, and generate classroom exams. 2. Companion Website provides academic support for faculty adopting this text.From the www. Prenatal. Com/shown text website, you can download supplements and lecture aids such as instructor's manuals, lecture notes, Powering presentations, problems and case solutions, and chapter outlines. Register online or call your Prentice Hall sales representative to get the necessary surname and password to access these detail supplements or contact Prentice Hall Sales directly at 3. Powering lecture notes. These Powering graphics provide individual lecture outlines to accompany Foundations of Finance.These lectures are class tested and can be used as is or easily modified to reflect your specific presentation needs. 4. Color transparencies for the primary chapters of the text, including a brief overview of the chapter, some of the exhibits in the text, and example problems that are useful in lectures. 5 Excel spreadsheet solutions to end-of-chapte r problems downloaded from www. Prenatal. Com/shown. For any teacher wanting information about the supplements, please contact the Prentice-Hall field representative for your area. Also, feel free to call any of the authors with any questions you may have.By calceolaria e. An in-depth self-teaching supplement on capital-budgeting techniques. 2. Companion Website online study guide for the student includes true/false, multiple choice, and short answer quizzes for each chapter. From www. Prenatal. Com/shown students can also access the internet exercises, current events articles with the necessary surname and password to access these digital supplements or contact Prentice Hall Sales directly at [email  protected] Com. 3. Powering as is or easily modified to reflect your specific presentation needs.

Facebook IPO Essay

Facebook, a social networking site, has grown at an exponential rate that far surpasses market expectation, so much so that its growth rate is referred to as the â€Å" Facebook phenomenal†. In 2004, Facebook had 1million monthly active users, and in comparison, it had reached 845million monthly active users in 2011. This phenomenal led to one of the biggest initial public offerings (IPO) the market had seen in recent years, with total capital raised to be valued at $16B, given the $38 per share offering price. Facebook was valued at around $96.6B in total. Prior to the IPO, the market perceived the valuation with positive approval signaled by both Facebook’s private market share auctions and analyst’s reviews. However, as it will be examined below, Facebook has been significantly over-valued by the underwriters. In addition, the market changed its opinion of Facebook shortly after the IPO, criticizing the valuation of the company was too high. The differences in market reaction showcase shortfalls in valuation, and it is recommended that analysts and Facebook should have used real option to valuate its market value. Over-valuation There are three main reasons why Facebook is overvalued at $38 per share. Aggressive Assumptions made by underwriters The first reason is the $38 per share price is based on overly aggressive assumptions made on Facebook’s future revenue. Facebook generates its revenue in two ways – display advertisements on its website and retain royalties from third-party developers for using Facebook’s online payment platform. Out of the two streams of revenue, advertisement accounts for about 82% of the total revenue, and royalty payment only accounts for 18%. Lead underwriter Morgan Stanley, has justified its pricing based on the assumptions that Facebook’s revenue will grow moderately considering the increasing popularity of its mobile app. Morgan Stanley estimated Facebook revenue to grow at 28% CAGR from 2013 – 2016, with advertising revenue growing at 31% and payment revenue growing at 17% per year. However, it is arguable that these assumptions are overly aggressive, and they will be extremely hard to realize. Upon examining the future prospect of revenue generated from advertising, it can be said that the estimated 31% growth rate cannot be achieved. First of all, given the online advertising market size, and current Facebook market share, Facebook will not be able to achieve the projected annual growth. In 2011, Facebook’s share of the online advertising market is 27% of the $25B industry. It is projected that the online advertising sector will grow to $45B in 2015, and given Facebook’s current market share, Facebook should be able to generate $12.15B in advertising revenue in 2015. However, this only accounts for 20% CAGR. Second, it is uncertain whether Facebook will be able to continue maintain its 27% market share. Facebook disclosed to the public that its current advertisers do not have long-term advertising commitment with Facebook, and many of its advertisers only spend a small proportion of their marketing budget with Facebook. In addition, many companies have started to question the effectiveness Facebook ads. Facebook differentiates its service by emphasizing the premise that ads are more effective if a friend recommends it on Facebook compares to traditional online advertising. It can be observed that companies, such as GM, are starting to doubt the effectiveness of the so-called social advertising by pulling out their ads on Facebook. This can significantly impact Facebook’s share of online marketing in the future. In addition, Facebook disclosed to the public that it might not be able to retain advertisers if it does not reduce its current ad price. However, considering that Facebook is already pricing its ads lower compares to other websites – Facebook charges $0.58 per click vis-à  -vis the industry norm of $1, it is hard to argue that Facebook will maintain its current revenue level even if it retains 27% of market share as it continues to reduce its ad price. Given the factors mentioned, it can be concluded that the estimated 31% growth rate in advertising revenue is overly aggressive. In addition, Morgan Stanley estimated royalty revenue would grow by 17%; however, by looking at the current royalty revenue, it is unlikely that Facebook will achieve the predicated growth rate. Facebook collects royalty payments from developers that use its payment infrastructure to charge players. Currently, Zynga accounts for a substantial portion of the royalty. Considering the intensified competition that Zynga is facing, and its lack of ability to monetize mobile apps, Zynga will continue to experience sagging growth and will not be able to contribute a substantial amount of royalty to Facebook in the foreseeable future. Thus, it is unlikely that Facebook will achieve 17% growth in its royalty revenue. Lastly, Morgan Stanley made these aggressive assumptions based on the premise that Facebook will be able to monetize its mobile app. However, Facebook has not been able to monetize its mobile app to-date. In addition, with the growing number of users using the mobile app as a substitute for accessing Facebook, Facebook is starting to see a decrease in its revenue, which led to the decrease in its stock prices after the IPO. Overall, the assumptions made by underwriters to justify the $38 per share IPO price are overly aggressive. Estimated fair value of common shares is much lower than $38 Facebook has estimated its Class B common stock to be at $30.89 per share as of Jan 31, 2012, and even if one continues with the aggressive estimation method that Facebook used, one will not reach the $38 per share valuation. Facebook adopted a mix of Discounted Cash Flow Method (â€Å" DCFM†), Guideline Public Company Method (â€Å"GPCM†), and Market Transaction Method (â€Å"MTM†) to determine its business enterprise value and fair value of its private share price prior to the IPO. To achieve the price of $30.89, Facebook assigns a 50% weight to the MTM, where it considers the volume of transaction of its private shares, the timing of these transactions, the pricing of private shares in the secondary market, and whether the investors involved in the transaction have access to Facebook’s financial information. It then assigns 25% weight to GPCM and DCFM each to determine fair value. GPCM uses multiples of financial ratios in comparable companies in the same industry, and DCFM sums up the net present value of future cash flow at a discount rate of 15%. The discount rate is conservative, given the risk free rate is at 2.3%, beta for IT services is at 1.06, and the market risk premium of 7%. The assigned weight of the method is questionable. Facebook assigns a significant weight to MTM due to the large volume of third-party private stock sales. But considering that the volume transaction and pricing of the private shares were driven by the hype of the Facebook IPO and the positive reactions from the market prior to the IPO, it is hard to justify that the MTM valuation represents the true value of Facebook instead of an inflated hyped-up value. It is arguable that Facebook should have assigned less weight to MTM, and more weight to DCFM and GPCM. In addition, it is hard to justify the $7.11 increase of fair market value in a span of 4 months considering that Facebook share only increased by $5.35 in estimated fair market value between 2011 and 2012. The methods discussed above and the historical estimates support the conclusion that Facebook IPO price is over-priced. Comparable Company Valuation The last reason is based on multiples generated by comparable companies, namely Google and Apple, it can be calculated that Facebook valuation is not close to the $96.6B valuation. See Appendix A. Market Reactions The market has perceived the IPO with positive remarks. One analyst even valued Facebook to be at $234B compares to the $96.6B IPO valuation. Most analysts either thought Facebook was valued right on the spot or thought it was undervalued. The hype about the stock was more obvious in the private market. Prior to its IPO, Facebook stocks were trading at a high of $42 compares to its $30 estimated fair market value. In contrast, immediately after the fall, most analysts jumped on the bandwagon of claiming the underwriters have overvalued the company. Some investors even blamed Mark Zuckerberg for failing to signal to the investors that the company has been overvalued. The difference in market reaction showcased three shortfalls in valuation. They are objective valuation method that fails to account for dynamic business environment, asymmetry of information, and low level of corporate governance. First, the valuation method that most analysts used to valuate Facebook is based on some types of discounted cash flow method. Analysts will look at future growth prospective of the company, and discount the estimated profit by a discount rate that would be appropriate to capture risks that are foreseeable given the historical financial record. In addition, the traditional discounted cash flow method depends on obtaining information that would allow one to correctly forecast future earnings and free cash flow, and to assess the strength of company management and future earning abilities. The model ignores that companies could change their business practices to the dynamic business environment that cannot be properly valuated based on historical data. Facebook does not provide adequate information to allow analysts to generate reliable valuations. It has limited record of its profits, its revenue has been highly volatile, and the business environment it operates in changes frequently. One instance that the underwriters may have overlooked is Facebook’s ability to monetize its mobile app as mentioned above. The underwriters may have ignored the importance of substitution of web-accessed Facebook usage by the mobile app accessed usage at the time of the valuation given that this risk was not reflected in historical revenue record. The second challenge relates to valuation is asymmetry of information, which is arguable that it had drove up investor expectation that a â€Å"free lunch† scenario will take place. Morgan Stanley was sued and fined for only disclosing softer revenue and profit forecasts to selective investors prior to the IPO and for failing to disclose the cannibalization of Facebook revenue by the increasing popularity of its mobile app adequately to retail investors through the prospectus. Investors with the additional information were able to make a better-informed decision of whether to purchase Facebook share or not. The asymmetry of information also led to market hype. Investors, without the softer revenue and profit forecasts, interpreted the market price to be much higher than the private trade price prior to the IPO and the IPO price. This drove the private share price to $42 from $34 on the secondary market. Investors thought by buying shares before IPO, they would be able to rip a bigger profit considering that the market price will be higher than $38. Lastly, the asymmetry of information led investors to believe that it will be extremely hard to buy Facebook stocks at IPO price given the mentality that the demand for the shares will not meet the supply despite the fact that  ¾ of Class B shares are locked in to be sold at a later time. The market hype, combined with the surging demand of shares and the lack of investor rationality drove the valuation of the company to be higher than what it really is. The last challenge is the lack of corporate governance. As investors have pointed out, the CEO of the company and the underwriters should have disclosed the information adequately in the prospectus. The lack of corporate governance could be driven by the lack of serious fine for improper disclosure of information. Morgan Stanley was only fined $5M compares to the $68M underwriting fee it gained from the deal. Also, the lack of governance was driven by hubris and greed. The underwriters stand to gain a bigger underwriting fee for a higher IPO price, and the company stands to gain more capital for higher IPO price. In addition, it is also easier for the underwriter to justify its valuation for a company that cannot be properly valuated based on the traditional discounted cash flow method. The combinations of driver lead to lack of corporate governance in this case. Suggested Valuation Method It is suggested that analysts and Facebook should have used real options to valuate the company given the volatility of the business environment Facebook is in, and the ever-changing business practices to meet these volatilities. Real option valuation allows the company to include R&D, brand development, and technology initiatives to be built into its valuation. It is also flexible enough to account for company’s ability to change its business practices in the future. Valuation will change in accordance to the options that management will take to delay, expand, contract, switch uses, outsource or abandon projects. Real options would allow Facebook to valuate its new platforms, new mobile apps, and new technology initiatives to renovate Facebook’s current operations. In addition, real option does capture the benefits of discounted cash flow model by assigning weights to future cash flow given the past company performance in the market. Given the current Facebook operation model, it is commended that real options should be used to valuate the company. Conclusion It is extremely hard to valuate a company properly, especially given a company, such as Facebook, which does not have a long history of stable income nor information that would solidify its future earnings. Market reaction prior to and after the Facebook IPO indicates issues within the current valuation models that companies and analysts are using. It is recommended that companies should start to consider using the real option method to valuate companies with similar business characteristics as Facebook. Bibliography Primary source: Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm. Secondary source: Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424127887324407504578185580869680410.html. Buley, T. (2009). Facing up to facebook’s value. Forbes, Retrieved from http://www.forbes.com/2009/04/06/facebook-advertising-rates-technology-internet-facebook.html. Damodaran. (2012). Betas by sector. Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html. Dunand, E. (2012). Morgan stanley fined $5 million over facebook ipo. Reuters, Retrieved from http://www.cnbc.com/id/100322264. Gustin, S. (2012). Do facebook ads work? . Time Magazine, Retrieved from http://business.time.com/2012/08/07/do-facebook-ads-work/. Joiner, S. (Interviewee), & Ruggeri, C. (Interviewee) (n.d.). Valuation issues in a down market Mergers and Acquisitions series : Part 1. [Audio podcast]. Retrieved from http://www.deloitte.com/view/en_LB/lb/centers/cfo-center/3e9619288f709210VgnVCM200000bb42f00aRCRD.htm?theme=cfo. Latimore, D. (2002). Calculating value during uncertainty: Getting real with â€Å"real options†. Retrieved from http://www-935.ibm.com/services/hk/igs/pdf/g510-3248-calculating-value.pdf. Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/. Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/. Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html. Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html. US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate. ——————————————– [ 1 ]. Facebook. (2012). Registration statement – facebook inc.. (p. 47). Retrieved from http://sec.gov/Archives/edgar/data/1326801/000119312512034517/d287954ds1.htm. [ 2 ]. Ibid. p.1 [ 3 ]. Ibid. p.13 [ 4 ]. Olanoff, D. (2012, 12 17). Morgan stanley fined $5m over facebook research and handling of ipo by massachusetts. Retrieved from http://techcrunch.com/2012/12/17/morgan-stanley-fined-5m-over-facebook-research-by-massachusetts/. [ 5 ]. Ibid. [ 6 ]. Raice, S. (2012). Is facebook worth $100 billion? . Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052702304584404576442950773361780.html. [ 7 ]. Ibid. [ 8 ]. Supra Note 1 at p.13. [ 9 ]. Gustin, S. (2012). Do facebook ads work? . Time Magazine, Retrieved from http://business.time.com/2012/08/07/do-facebook-ads-work/. [ 10 ]. Buley, T. (2009). Facing up to facebook’s value. Forbes, Retrieved from http://www.forbes.com/2009/04/06/facebook-advertising-rates-technology-internet-facebook.html. [ 11 ]. Martin, S. (2012). Zynga shares slide nearly 5%. USA Today, Retrieved from http://www.usatoday.com/story/tech/2012/12/17/zynga-apple-app-store-ios-iphone/1775403/. [ 12 ]. Supra Note 1 at p.14. [ 13 ]. Supra Note 1 at p.76. [ 14 ]. Ibid at p.77. [ 15 ]. Ibid. [ 16 ]. Damodaran. (2012). Betas by sector. Retrieved from http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/Betas.html; US Treasury. (2012). Daily treasury long term rate data. Retrieved from http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=longtermrate. Re = 2.3%+1.06(7%) = 9.72% Facebook does not have any long term debt. [ 17 ]. Supra Note 1 at p.78. [ 18 ]. Ibid at p.77 and 78. The estimated fair value of Facebook’s shares $25.54 on Mar 31, 2011, and $30.89 on Jan 31, 2012. [ 19 ]. Supra Note 6. [ 20 ]. Smith, R. (2012). Hot item: Pre-ipo facebook shares. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424052970203833004577249512827646658.html. [ 21 ]. Joiner, S. (Interviewee), & Ruggeri, C. (Interviewee) (n.d.). Valuation issues in a down market Mergers and Acquisitions series : Part 1. [Audio podcast]. Retrieved from http://www.deloitte.com/view/en_LB/lb/centers/cfo-center/3e9619288f709210VgnVCM200000bb42f00aRCRD.htm?theme=cfo. [ 22 ]. Berthelsen, C. (2012). Massachusetts hits morgan stanley on facebook ipo. Wall Street Journal , Retrieved from http://online.wsj.com/article/SB10001424127887324407504578185580869680410.html. [ 23 ]. Supra Note 20.