Free Essays on Yeats Valves

Introduction Yeats Valves and Controls Inc., founded in 1980, went public in 1987, specializing in the manufacturing of specialty valves, heat exchangers, and other engineering work. Since Yeats has a strong reputation of engineering excellence, 40% of the company’s volume and 50% its profits comes from highly-technical defense and aerospace applications funded by the United States government. With this, Yeats has been able to offset the decline of sales due to the foreign-currency crisis of the last past decade, and is very optimistic that this will continue in the future. Since Yeats is lacking a large marketing and distribution network, Bill Yeats, CEO, believes that selling the firm to a larger company would be very beneficial. Also Yeats is afraid of being driven out of the market by the amount of large consolidations in the industry by his competitors. In addition, Bill is now sixty-two years old and is nearing retirement. He would like to see the firm continue to grow while his services are inactive. Because of these factors Bill Yeats took the initiative to contact Tom Eliot, CEO of TSE International Corporation, a well diversified manufacturing company with production know-how, about the possible acquisition of Yeats Valves and Controls. Valuation Models Before Yeats shareholders can set a price for their shares of stock, they must know the value of their firm. The current market value is easy to determine by multiplying the share price by the number of shares outstanding. However, the current share price may not be the true intrinsic value of the firm. One way of determining value is the discounted cash flow method. Future sales are estimated as well as the free cash flows resulting from these sales. If all future cash flows are discounted back to today at an appropriate required rate of return, the summation of these discounted flows would be the intrinsic value of the firm. The discount rate is most of... Free Essays on Yeats Valves Free Essays on Yeats Valves Introduction Yeats Valves and Controls Inc., founded in 1980, went public in 1987, specializing in the manufacturing of specialty valves, heat exchangers, and other engineering work. Since Yeats has a strong reputation of engineering excellence, 40% of the company’s volume and 50% its profits comes from highly-technical defense and aerospace applications funded by the United States government. With this, Yeats has been able to offset the decline of sales due to the foreign-currency crisis of the last past decade, and is very optimistic that this will continue in the future. Since Yeats is lacking a large marketing and distribution network, Bill Yeats, CEO, believes that selling the firm to a larger company would be very beneficial. Also Yeats is afraid of being driven out of the market by the amount of large consolidations in the industry by his competitors. In addition, Bill is now sixty-two years old and is nearing retirement. He would like to see the firm continue to grow while his services are inactive. Because of these factors Bill Yeats took the initiative to contact Tom Eliot, CEO of TSE International Corporation, a well diversified manufacturing company with production know-how, about the possible acquisition of Yeats Valves and Controls. Valuation Models Before Yeats shareholders can set a price for their shares of stock, they must know the value of their firm. The current market value is easy to determine by multiplying the share price by the number of shares outstanding. However, the current share price may not be the true intrinsic value of the firm. One way of determining value is the discounted cash flow method. Future sales are estimated as well as the free cash flows resulting from these sales. If all future cash flows are discounted back to today at an appropriate required rate of return, the summation of these discounted flows would be the intrinsic value of the firm. The discount rate is most of...

And Then There Was None by Agatha Christie essays

And Then There Was None by Agatha Christie essays Have you ever been in a dark, desolate room in complete seclusion from everyone else where you sense a presence nearby, but when you turn around, nobody's there? Have you ever been so afraid that you can't sleep at night? I believe that anyone who is an actual human being can agree with me that, in some way, everyone has felt some kind of fear and excitement due to a scary movie, book, or even reality. After reading this novel by Agatha Christie, And Then There Were None, I can honestly say that there is a book out there that can give me the shivers. Never have I been so afraid of a fictional - based story that I wasn't able to go to sleep that very same night I finished the novel. Not only did the plot of the story keep me on the edge of my seat, but the personalities and the secretiveness of the characters kept me in suspense as well. The novel takes place on Indian Island, a location known for publicity and curiosity, yet nobody knows for sure who owns this piece of land. In the beginning chapters of this book, you become familiar with the ten main characters who are out to spend an eight-day vacation on this secluded island with only a vague invitation with some variety on each one. The descriptions of each character are specified clearly, yet each holds a secret that they wouldn't dare to share with anyone else on the island. When the guests each arrive in their rooms, they find a riddle called "Ten Little Indians" which plays a significant role throughout the book, for this riddle tells the death of ten men on an island (ironic, eh?). By night time, they are all acquainted with each other, until a noise projecting from the wall tells a story about the guests and how they are all charged for a murder they could never be tried for. Now this book might somehow seem like an episode out of a "Clue" mysteryâ₠¬â€œbut did "Clue" ever give you the chills you get on the back of your neck? No, I didn't think so! Suddenly, in the few ...

PKG 381 assignment #1 Example | Topics and Well Written Essays - 250 words

PKG 381 #1 - Assignment Example Crisp vegetables were packed in sacks made of cotton and sisal and these are products which are recyclable (Guerrero 2013). They have longer lifespan and can be used again and again before disposal or recycling. When disposed, they decompose over a short period of time. Filtered water are mostly packed in plastic, these plastics take hundreds of years to break down when disposed and are also expensive to recycle. They pollute the environment widely and expose flora and fauna in danger. Plastics even cause death to animals which humans really depend on. Being difficult to recycle makes man to dispose them any how due to our laziness posing threat to our environment (Guerrero 2013). Pudding containers are also made of plastic though somehow light. Still, they threaten our environment since it’s a loss recycling them. They require good disposal but not dumping them anywhere since they take long to break down. Humans have the greatest part to play in the conservation of the environment. Their action determines our environment’s stability. Good practices should be put in place especially when it comes to products we use. There should be laws to help us manage our environment and avoid laziness (Guerrero 2013). With good practices towards environmental conservation, the organisms we depend on will be able to survive and in long run human life will be

Marketing plan Coursework Example | Topics and Well Written Essays - 500 words - 1

Marketing plan - Coursework Example The service-profit chain is a concept introduced in the Harvard Business Review in 1994. A book describing the concept was published in 1997. According to the description, in the book, the service-profit chain serves to demonstrate the existing relationship between service excellence and a company’s financial growth and performance. According to this concept, profitability and revenue growth come because of customer loyalty. Without customer satisfaction, loyalty does not result. Therefore, organizations strive to ensure that their services exhibit a high-perceived value to the customer in a bid to increase customer satisfaction. It is impossible to achieve high levels of customer satisfaction if the employees do not exhibit high levels of commitment and outstanding competencies (Yee et al., 2009). Therefore, organizations seek to hire individuals with remarkable competencies and empower them through training programs in order to increase their productivity. Empowered employee s are more likely to serve customers in an exemplary manner. The Starbucks Company has relied on the service-profit chain in order to register the evident financial performance. The company invests in human resource development through training programs that empower employee to deliver high-quality customer service. Over the years, the company has applied service innovation in order to ensure that employees serve as a valuable link between the organization and the customers. The company regards employees as partners, a factor that triggers employee satisfaction. The satisfied employees have worked for Starbucks for a long time registering high levels of productivity. Since employees are in a position to deliver service value to customers, the company prides itself with high levels of customer satisfaction (Gold, 2010). Due to the high levels of satisfaction that customers

Qantas Cas Notes Essay Example for Free

Qantas Cas Notes Essay Analyse and interpret data Maintain Qantas/Jetstars combined domestic market share of 65% Match capacity with demand sustaining loads around 80% Grow Jetstar in Asia Increase internet sales Increase customer service standards Enhance complementary portfolio businesses like Freight Reduce losses of Qantas international Transform Qantas International for focusing on right aircraft, right route, network optimisation and margin improvement Grow their frequent flyer program members and partners Market Segmentation and Selection of the Target Market Qantas market segmentation is complex because each segment has distinctive and different needs and expectations, such as the need to make stop-overs, the ability to pay fare levels and expectations in terms of in-flight service and comfort. Qantas mainly uses behavioural segmentation to select its target markets. Buyers are distinguished according to trip purpose e. . business and leisure/non-business travellers. Marketing Strategies Positioning Formulating the Marketing Mix Product Strategies Scheduling features Comfort-based features I ne Qantas Frequent Hyer scneme (H- Intangible benefits Brand name Price Cost plus margin: Qantas determines the cost of production and then adds a margin for profit Market: most fares at Qantas are determined by the market, where demand is matched with supply Competition based: monitoring what other airlines such as Virgin Blue are charging Pricing Strategies Price penetration Full Fares Promotional Fares Loss Leading Promotiono Advertising Sales promotions particularly in periods of subdued demand. When Qantas first launched Jetstar it released 100,000 tickets at $49. Qantas also launches a two-for- one ticket sale, which allowed a second passenger to fly for the cost of taxes and charges. Personal selling Publicity Place/Distribution Distribution to end customers is achieved by Qantas in two ways, direct and indirect. DIRECT via its own retail outlets INDIRECT via sales agents People Because most customers have direct contact with Qantas employees, especially on he ground, the impression they give has a big impact on how Qantas is perceived. Qantas staff must have appropriate personal attributes and training for their Jobs. Qantas spends more that $275 million a year on staff training to ensure a very positive interaction between its customers. Processes Booking flights online Online check in Mobile check in cnecK In KIOSK Physical Evidence Qantas customers are influences by Qantas signage, its website, its terminals, its lounges, etc. E-Marketing uses an electronic medium to perform marketing activities, e. g. website, email. Global Marketing is the use of marketing activities across national boundaries. Qantas uses: Global Branding Standardisation Customisation Implementing, Monitoring and Controlling the Marketing Plan Qantas has a systematic base for continually monitoring, controlling and adjusting its marketing activities using the following tools: Developing a financial forecast of revenue using statistical models, past sales data, executive Judgement and surveys of customer buying intentions. It then estimates costs such as market research costs, promotion costs, product development costs and distribution costs. Comparing actual and planned results using a number of performance criteria.

Free College Admissions Essays: Describe A Person who has Influenced You :: College Admissions Essays

College Admissions : Describe A Person who has Influenced You Everyone is affected by certain events or individuals that greatly change their life. Many people have influenced me during my life. Three wonderful friends that have had a special effect on me are Robert, Tiffany and Ashley. In the four years that I have known them well, they have been my best friends, and have helped to transform me from a lonely middle school scholar into a happy senior with a decent social life. Popular wisdom has it that, "You judge a man by his friends." Earlier in my life, that would have been difficult, because I had few friends other than my cousins. I concentrated mostly on school and sports, paying little attention to life outside my studies. My high grades made me the target of torment during elementary school, the name calling: nerd, geek, and worse, was so bad that I was ostracized by some of the class, and I shielded myself by further isolation. My Middle School experience was no different. I was still a loner. All the dances passed by, and I found other, solitary ways to occupy myself. I rarely took time to hang out with fellow students during weekends or vacation time. Then came high school, and in Mrs. Krawet's Global Studies I class I sat next to this energetic guy named Robert, who joked about the no-brained teenagers working in 7-11's, made fun of the way our teacher dramatized the pronunciation of the Huang-Ho and Yangtze Rivers, and satirized the teacher's methodology of hand-signals for facts, generalizations, and cause/effect. Finding common ground in our senses of humor, and love of the TV Simpson's, we grew acquainted with each other. Later in the year we teamed up as the defense lawyers in a class mock trial in which Mao Zedong was charged with crimes against the people of China. To Mrs. Krawet's dismay, "legal wrangling" caused the mock trial to last two weeks, even though she had planned for it to take three days, until it was resolved by a split decision, with the jury voting 6 guilty and 6 innocent. More important than the result was the experience of friendship and shared learning. We each had a great deal of fun preparing questions for the witnesses and planning our cross examinations, and after the trial we remained good friends.

Police: Racial Profiling in America

POLICE: RACIAL PROFILING IN AMERICA Naomi D. Hopkins Stevens-Henager College APP 101 9 February 2013 Abstract This paper will discuss the relationship between Fear and how it relates to Racial Profiling in Police Practices. We will also discuss and illustrate real life examples under which Racial Profiling has occurred and how it is scientifically defined. The communication between peace officers and ordinary everyday citizens will also be examined. Police: Racial Profiling in America The issue of Racial Profiling in America by our Police Force is an undeniable truth and tragedy.Steve Holbert and Lisa Rose in their book the color of Guilt & Innocence recount a story of a Caucasian woman who is forced to walk alone with her young daughter down dark unfamiliar San Francisco streets at night in the dark. We’ll call this woman Lisa. She had just exited a train car with her young daughter and was walking down the dark streets unsure of her surroundings when she noticed that a stran ger man, whose features she couldn’t make out, was following her and her daughter.Lisa had heard and seen reports about a young man in his mid-20s that was dark complected and had been robbing tourists. She felt her body tighten as she began breathing rapidly and she had quickened her pace pulling her daughter along without realizing it, until her daughter started pulling her in the opposite direction because she had dropped her candy cane that she had gotten from the cable car employee earlier that evening. After her experience in the city, she began to question whether the irrational fear of monsters conjured up in the mind of a four year old was so different from the â€Å"monsters in the closet† we perceive as adults, the only difference being that the â€Å"monsters† we see as adults have a face and the face is of those who are different or those whose skin color is darker than our own. (Holbert, S; Rose, L 2004). This begs the question, â€Å"Did she fear this man because it was nighttime and she couldn’t see him and was unsure of her surroundings?Or was it because the man following her reminded her of that minority man who had been on the news who was robbing tourists? This brings to mind another quote I found while writing this paper: â€Å"Rather, racial profiling is more about our human response to an instinctual and primitive fear buried deep in each one of us. † (Holbert, S; Rose, L 2004) On the subject of Fear and Racism, I’m led to another quote in the book used primarily for my research on this very subject as it relates to American Law Enforcement practices. When we ponder the concept of fear in the comfort of a classroom, almost all would agree that to fear a person because of skin color, religious affiliation, or appearance is irrational. In the phobic sense, this fear is xenophobia, the fear and/or hatred of foreigners or anything that is foreign. † (Holbert, S; Rose, L 2004). I would even go so far as to say that contempt prior to investigation is in itself, a form or fear and intolerance. How can we judge a situation, let alone a person, accurately without all the facts?Do we assume we are Gods or Goddesses that are worthy to judge our fellow men or women? If so, what makes us so different, or dare I say, â€Å"Superior† to another? I am reminded of my own feelings, when as a small child; I made the decision to say that â€Å"all white people are racist. † This statement in and of itself is in fact, a form or racial profiling. That is, I was judging a certain race of people, in this case, whites and assuming that I had gathered enough information to do so.This brings me to another quote out of my research, â€Å"To understand the complexities of prejudice, racism, and racial profiling, we must first explore the origin of fear and understand how it can dictate the way in which our body responds to outside stimuli long before we become consciously aware of the racial implications. † (Holbert, S; Rose, L 2004). In fact, the word â€Å"fear† comes from the old English word for â€Å"danger. † When we, as human beings, experience fear our brains respond to perceived danger by using three distinct systems.The first is called Primal or Primitive fear system, and is found in most animals and mammals. This system responds first by alerting the body to any danger. This reaction is automatic and triggers our â€Å"fight or flight† response. The second is triggered by the â€Å"fight or flight† response and is the mind’s Rational or logical fear system. â€Å"This system takes over in an effort to assess the potential danger and weighs options for survival or escape. † (Holbert, S; Rose, L 2004). This system effectively plans possibilities we need to consider to escape an immediate or future threat.The third system is called a person’s Consciousness or Awareness, and acts as a mediator bet ween Primal Fear and Rational Thought. This system will strike a balance between the mind’s emotion and reason and will become the ultimate decision maker in the entire process. Now, let’s examine some history on racial profiling that is actually quite interesting. This thought brings me to another quote I pulled out of this book I used to research this topic/ â€Å"Start with a good idea. Test it thoroughly, and use it with care.Put it in the hands of those who don’t have the experience and training to apply it properly. Add a little discrimination and pressure, and turn up the heat for 20 years. What do you get? Racial Profiling. (Holbert, S; Rose, L 2004). â€Å"In a nutshell, this is the story of Howard Teten, a former FBI Chief of research in the late 1950s who many criminologists credit with popularizing the concept of â€Å"criminal profiling. † A man who lived the best of both worlds, Mr. Teten studied psychology at the University of California at Berkeley while working crime scenes in San Leandro, California.Back in the 1950s, cops typically looked for clues at a crime scene to try to tie the crime to a particular suspect. Teten took this concept one step further by looking at the manner in which the criminal committed the crime in order to develop a psychological profile. This profile ultimately helped officers identify a criminal’s personality traits and mental state and led to a classification of potential suspects who could have committed the crime. † (Holbert S; Rose, L 2004). This very method, which is called â€Å"criminal profiling†, has been widely distorted, especially when it comes to the United States â€Å"War on Drugs. For example, it is assumed that if a person, particularly a person belonging to a minority group (that is not white or Caucasian), is seen wearing gold jewelry that is large in size, a â€Å"corn roll† hair style, baggy clothes, and perhaps gold teeth, Law Enforceme nt Officials automatically assume that this individual is a â€Å"drug courier,† or an individual that smuggles drugs or money into or out of the country. It can be said that a person’s appearance, jewelry, and travel habits can be used as a basis for identifying and prosecuting those involved in the â€Å"drug trade. The end result of these discriminatory attitudes is that these â€Å"profiles† do not demonstrate â€Å"good science† or offer sensible approaches to productive Law Enforcement procedures. Now, let’s examine the other side of the coin, as it were as it relates to basic race relations. When we all think of a police officer, we all have this stereotypical view that they are tough, intimidating, and very arrogant. In actuality, police officers have learned their very behavior and personality traits from the general public. Most people, when contacted by a police officer, become irritated, hostile, overbearing, and even belligerent.So, i n turn, officers have learned how to desensitize or become â€Å"numb† to their emotions and feelings. It wouldn’t be a far cry to say that they have learned to behave as â€Å"not human† just so that they can get through their day without having to worry about what they said, was it rude, right or wrong, what the repercussions might be, and so on. So it is accurate to say that the general public ourselves, have contributed to the attitudes and behaviors of our own Police Force in America. What we don’t hear about or realize often times is that when an officer goes on duty, he or she faces any number of different variables.For example, having a gun pulled on them, being attacked, being shot, taken hostage, being kidnapped, and any number of other things that would threaten or endanger their lives either mortally or fatally. I will illustrate an example of what ought to be advertised when hiring police officers: WANTED: LAW ENFORCEMENT OFFICERS: Must be a social worker, mediator, a fighter, a priest. Must be savvy to the criminal element yet have an unblemished criminal background. Candidates should be compassionate yet distant. Intimidating yet gentle. Aggressive yet always in control. Daily risk of death.Low Pay. Must be willing to work all hours of the day and night in hazardous and extreme conditions. The Faint of Heart need not apply. (Holbert, S; Rose, L 2004) WANTED: LAW ENFORCEMENT OFFICERS: Must be a social worker, mediator, a fighter, a priest. Must be savvy to the criminal element yet have an unblemished criminal background. Candidates should be compassionate yet distant. Intimidating yet gentle. Aggressive yet always in control. Daily risk of death. Low Pay. Must be willing to work all hours of the day and night in hazardous and extreme conditions. The Faint of Heart need not apply. Holbert, S; Rose, L 2004) Realizing these facts, we all ought to be a little gentler with the officer next time we are pulled over for speedi ng or contacted about a conflict resolution issue. Police Officers deserve respect, but they also do not have the right to demand respect, and it is the same with the rest of us. That being said, when we think of â€Å"use of force† by police officers, we all know the familiar image conjured up; the Rodney King beating on March 3 1991. In case you’re wondering, the case went to trial and all of the officers involved were NOT convicted. The result was the L.A. Riots of 1992. When we think of this case, we wonder, what could have gone so wrong in our justice system? The answer is not as clear as one might speculate. The â€Å"code of silence† is as much to blame as ignorant and wrong attitudes are to blame. â€Å"The Code of Silence† also known as â€Å"The Blue Wall of Silence† is based on the premise that an officer does not reveal negative information about a fellow police officer. (Holbert, S; Rose, L 2004). I can recall an experience I had in Ca lifornia with an officer who responded to a call about me when I was homeless and sleeping in my vehicle.The officer responded alone, without backup, and contacted myself and two friends of mine. He falsely accused us of smoking weed, arrested my friend for a warrant she had, shined his flashlight deliberately in my face, and pulled his Taser on me when I reacted unfavorably to his â€Å"bullying behavior. † I then had to demand that he call his Watch Commander, or Supervisor out to the field to discuss what happened and what I wanted done about his misconduct. I told the Watch Commander that I wanted an apology, both written and verbal, but to my dismay, he responded and told me, â€Å"I’m sorry ma’am I cannot do that.If I promise to talk to him about this incident, will you refrain from reporting it? † I was appalled to say the least. I later had to go through the channels to report this incident at the Police Department in person, but this is a prime r eal-life example of â€Å"The Code of Silence† in action. How many times has this happened to other citizens, but for whatever reason, they are too afraid or intimidated to report such misconduct. If we as a society wish our Police Force to be more accountable, we must take the action to make sure that happens. Otherwise, we are just birds preaching to a choir with deaf ears.The sad fact is that many Police Departments still retain the right to â€Å"police† themselves on such issues of misconduct and â€Å"use of force† incidents. This is the main reason that the officers involved in the Rodney King beating of 1991 were cleared of guilt. First of all, to even file a complaint against a police officer, citizens must endure a lengthy and time consuming process that involves appearing in person at the police department, then weeding through the trouble and intimidation of even telling a department employee or filling out a report about the alleged incident, and so metimes are refused and intimidated out of that process.Second and most important, even after all that trouble has been endured by the complainant, little or nothing is ever done about the problem other than to refer it to the Internal Affairs Division of the police department and they in themselves have their own policies and procedures which may or may not include final review by the Chief of Police and even then, the issue may not be resolved to the satisfaction of the complainant. In conclusion, I have learned it is sometimes better to ignore arrogant and racist comments by officers unless I have the time to devote to a complaint and investigation process.I’ll end with this quote from Martin Luther King, Jr. â€Å"We will have to repent in this generation not merely for the hateful words and actions of the bad people but for the appalling silence of the good people. † (King Jr. , Martin Luther 1963) References Holbert, S; Rose, L (2004) the color of GUILT & INNOCEN CE RACIAL PROFILING AND POLICE PRACTICES IN AMERICA King Jr. , Martin Luther (1963) â€Å"Letter from Birmingham Jail† April 16, 1963 Retrieved from www. history1900sabout. com/od/martinlutherkingjr/a/mlkquotes. htm

Eminent Domain When Can the Government Take the Property of a Citizen Without His Consent?

Melanie Carter Political Science 2212 State & Local Government W01 Spring 2013 Eminent Domain When Can the Government Take the Property of a Citizen Without His Consent? One of the more controversial Government actions is its ability to exercise the power of eminent domain to take control of property that belongs to an individual or private entity against their will. â€Å"Eminent domain, broadly understood, is the power of the state to seize private property without the owner's consent† (WordNet).This paper will examine the elements of eminent domain and what protections are in place for citizens that may be effected by it, identify types of transactions that are typically involved and accepted in eminent domain cases and discuss what the citizens should expect to receive as compensation even though they have lost the property due to some of the broad definitions of the elements. Any time the government is taking the property of an individual, without his consent, it is a con troversial matter.Many politicians and citizens agree that it was necessary to establish a method of acquiring property for the needs of the common good of the community even when there is a lone hold out property owner. It has been held that the power of eminent domain can only be exercised after meeting the protection standards established under the Fifth Amendment of The United States Constitution. We have been conditioned through the media that the Fifth Amendment protects us against self-incrimination â€Å"I plead the fifth†.Self-Incrimination is an important aspect but most people don’t realize that the Fifth Amendment has a â€Å"taking clause† designed to protect the property owners. â€Å"No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor sh all any person be subject for he same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use without just compensation (United States Constitution Fifth Amendment). The Amendment initially only applied at a federal level until passage of the Fourteenth Amendment in which due process and equal protection were made applicable to the states.Taken at face value, the Fifth Amendment taking clause can be broken down into four basic elements: Nor shall (1) private property be (2) taken for (3) public use without (4) just compensation The first is private property, it is self-explanatory and the definition is fairly narrow today although its prior applications were more expansive for example one of the biggest issues with emancipation of slaves was the one time belief that they were seen as pr operty and not as individuals and this status protected the property owner.It was this view that brought about the Emancipation Proclamation and passage of the Thirteenth Amendment. Private property is defined as: Private property N-land or belongings owned by a person or group and kept for their exclusive use (Dictionary. com) The next element is the taking of the property. The property my be taken from the owner without their consent in order to make an improvement of some sort that will have a beneficial result for the community.It’s important also to note that property owner is not only in jeopardy of losing their property to the government but that it may lose to a private developer for the purpose of an improvement that might add value to the city for example in the form of taxes. In the case of eminent domain the property is taken without the consent of the owner of the property. If the owner were to consent or agree to a payment then it is simply a transaction and emi nent domain is no longer applicable.The third element is the requirement that the property is taken for public use and because of the definition applied for public use it is the most controversial. While the party who is surrendering his property under eminent domain will almost always be upset or offended, the remainder of the citizens will typically may not take issue with the process as long as they see the benefit for themselves and their communities. Improved infrastructure such as road building, bridge building, water shed protection and education are examples of these takings that are agreeable with most of the people.The broad definition of â€Å"Public Use† in Eminent domain cases as applied today: Public use n. the only purpose for which private property can be taken (condemned) by the government under its power of eminent domain. Public use includes: schools, streets, highways, hospitals, government buildings, parks, water reservoirs, flood control, slum clearance and redevelopment, public housing, public theaters and stadiums, safety facilities, harbors, bridges, railroads, airports, terminals, prisons, jails, public utilities, canals, and numerous other purposes designated as beneficial to the public (Hill & Hill).This broad definition was reviewed and established primarily based on two US Supreme Court cases. The first is a 1954 decision in the case of Berman v. Parker (Law. Cornell. Edu) and it was found that public use has a much more broad reach than simply building a roadway. In Berman, the case dealt with the District of Columbia Re-Development Act of 1945 and found it to be constitutional for the administrative agency to take the appellant’s building from him. The appellant owned property and used it for commercial purposes, to use urban slang, he was a â€Å"slum lord† and the agency wanted to re-develop the area.The Supreme Court agreed that it was reasonable to â€Å"eliminate and prevent slum and substandard housin g conditions—even though such property may be sold or leased to other private interests subject to conditions designed to accomplish these purposes† (Law. Cornell. Edu). After upholding the Re-Development Act, the definition of â€Å"public use† was expanded to cover the aforementioned â€Å"beneficial to the public†. Essentially the Supreme Court said that the requirements of the Fifth Amendment are fulfilled when the owner of the property receives his just compensation for the taken property.Berman remained the standard for 50 years, but it was not the final say of the US Supreme Court when it comes to defining â€Å"Public Use†. The next case would further expand on the public portion of the definition in 2004 with the case of Kelo v. The City of New London. In this case, the Supreme Court expanded on the earlier Berman decision. The City of New London had established a development plan that â€Å"projected to create in excess of 1,000 jobs, whi ch would increase tax and other revenues and would also revitalize an economically distressed city including its downtown and waterfront areas†Ã‚  (Minier, 2005).After buying most of the property necessary for the development there were a few â€Å"hold out† landowners who refused to sell their property. The city wanted to use the power of eminent domain to take possession of the properties that belonged the holdout owners. The Supreme Court set precedent when it found for the City of New London and refused to overturn the ruling of the Supreme Court of Connecticut allowing for property to be transferred to a private owner for the use of economic development, which would benefit the community and therefore could be defined as public use.This broadened the public use definition and has created a lot of controversy because it allows a for-profit, private entity to become the new owner of the taken property as long as it can be shown that the public will benefit. The use o f eminent domain for this purpose will often result in public outcry and protest because the citizens don’t agree with the encroachment by private entities much less the government. As an example, what if Ford Motor Company approached the City of Kennesaw about building a new manufacturing plant for its popular F-150 pick-up line.They are planning on creating 2,500 new jobs with the factory as well as relocating another 250 current employees to the area. Ford has acquired all the necessary parcels of land except for one house on one and a half acres that the owner refused to sell despite offers from the company to pay for the property and relocate the owner. The new plant would increase the tax base for the city and would bring people into the area into new homes (creating more business with construction) or into currently vacant homes.Under the broadened definition of â€Å"public use† the property could be taken by the city as long as just compensation is paid to the owner, and the city could then sell the property to Ford Motor Company to complete the project. The Final element of eminent domain is â€Å"just compensation for the property which has been taken† (Smith, Greenblatt & Mariani, 2011). The receipt by the property owner of this â€Å"just compensation† is what closes out the requirements under the Fifth Amendment of the Constitution.While the Berman ruling was significant towards defining public use, the Supreme Court felt it was important to speak of just compensation in its findings on the case. Just compensation is very subjective because usually the â€Å"hold out† property owner has established a value for his property that is not agreeable to the purchaser of the property; or in some cases the property has a â€Å"greater than cash† value to the property owner who is just determined not to sell it or have it taken away from him.Initially the government will initiate the process of acquiring the prope rty that they need to complete their project just as if they are attempting to purchase it as an independent buyer would. If there is a meeting of the minds and an agreement is reached the purchase is a simple procedure. The challenge comes in when the current owner and the government do not come to an agreement; it is at this point that the process of eminent domain will begin with the formal filing of a lawsuit by the government to take the property.It is also important to note each state has it’s own laws in regards to eminent domain; for example, in one state the government may be required to pay any legal fees assessed in the case. As discussed earlier, if the parties were to come to terms on a purchase then eminent domain would not be applicable. The owner has the right to just compensation which is compensation for property taken under eminent domain that places a property owner in the same position as before the property is taken see also eminent domain.NOTE: Just com pensation is usually the fair market value of the property taken. Since the definition of public use has been broadened it the significance of just compensation increases because it is the greater judicial measure of having met the requirements of the Fifth Amendment. Further, â€Å"The owner of property is entitled to be put in as good a position pecunuarily as if his property had not been taken†. Fair Market Value as applied within just compensation is also subjective and controversial.FMV (Fair Market Value) will consider current improvements to the property but it does not take into account sentimental value, historical significance, or future increase in value of the property. When addressing the just compensation issue the government usually has the advantage because if they have already decided to exercise the Power of Eminent domain then negotiations have usually ended and with the public use issue settled the property owner can only take the issue to court and hope f or a favorable decision and award through arbitration or the court process.While just compensation covers the property at fair market value it does not cover attorney’s fees related to the disputed acquisition of the property. The challenge here is that the family that has been displaced may find little satisfaction in being justly compensated (in the eyes of the government) for having their lives in an upheaval; their lives may be wrapped up in the community in which they have been rooted and eminent domain could cause an unjust hardship outside of the monetary issue. This is one of the examples that make eminent domain one of the most unpopular acts.The Power of Eminent domain plays an important role in our communities. Although the Fifth Amendment was designed to afford protection to the property owners that protection has been diluted through a series of court rulings that have broadened definitions and allow Eminent domain to work in the governments favor. Essentially th e government will prevail if it meets the four elements of the Fifth Amendment’s takings clause nor shall (1) private property be (2) taken for (3) public use without (4) just compensation.When deciding the next course of action the property owner should be aware these elements and also should consider the worthiness of the challenge. Currently the Atlanta Falcons, a private sports franchise, are looking for a new stadium that will be built and operated in a joint venture with the City of Atlanta through a government appointed agency, The Georgia World Congress Center Authority and just compensation will play heavily in the activities of property acquisition.There are two churches in the way of the proposed new stadium site, one of which wants to improve its standing and position and the other has age and historical significance. Friendship Baptist Church has historical significance in that it was started by slaves more than 150 years ago and is the â€Å"oldest black Baptis t church in the city of Atlanta† and many important events/institutions began at this church including the fact that Spelman College was founded in the basement of the church and Morehouse College held classes there (Proctor, 2013).At this point, Lloyd Hawk who is the Chair of the Board of Trustees for the church says that they want the significance of the church to continue to be at the forefront and they want some of the significance of the church, such as the Bell Tower, to remain but they are waiting to see what kind of offer they are going to be made. The other church, Mount Vernon Baptist, has conceded that they would sell and have stated that they want to do what is best for both the community and the church.There will be other property owners who choose to hold out trying to get the â€Å"best deal†. This matter will be a good, relevant case study in eminent domain because it will involve all aspects of the disputed issues including public money, public use, inc reased economic impact, and private corporate involvement. The bottom line is that in the case of eminent domain there is no clear winner and there may be a clear loser. In some cases it may be a good thing for all parties involved; perhaps the property owner has no ties to the property and is ready to get out.Taking payment for the property may be a way that they can walk away cleanly. But, the government, in my eyes will never be the loser because they will always get what they want. The homeowner may not want to surrender the property for any amount of money based on sentiment or any number of other reasons and being forced out of their gamily home is stressful. Or, the homeowner may feel that the financial (just compensation) falls short of their expectations or they may simply be greedy and want too much.In either scenario the homeowner is clearly the loser if they lose their home under circumstance that they feel are less than ideal if the power of eminent domain prevails. Bib liography Hill, G. , & Hill, K. (n. d. ). Retrieved from http://legal-dictionary. thefreedictionary. com/public use Minier, D. (2005). Kelo v. city of new london. Retrieved from http://www. casebriefs. com/blog/law/property/property-law-keyed-to-dukeminier/eminent-domain-and-the-problem-of-regulatory-takings/kelo-v-city-of-new-london/ Miriam Webster. N. p. : n. p. , n. d.Http://dictionary. findlaw. com/definition/just-compensation. html. Web. 04 Apr. 2013. . (n. d. ). Retrieved from http://www. law. cornell. edu/supct/html/historics/USSC_CR_0348_0026_ZS. html private property. (n. d. ). WordNet ® 3. 0. Retrieved April 16, 2013, from Dictionary. com website:  http://dictionary. reference. com/browse/private property private property. (n. d. ). Collins English Dictionary – Complete & Unabridged 10th Edition. Retrieved April 16, 2013, from Dictionary. com website:http://dictionary. reference. com/browse/private propertyProctor, A. (2013, March 22). Historic atlanta church si ts on proposed site of new falcons stadium. Fox 5 News. Retrieved from Historic Atlanta church sits on proposed site of new Falcons stadium SCEG. (n. d. ). Retrieved from http://www. columbia. edu/cu/cssn/expansion/ Smenkowski, B. P. (n. d. ). Retrieved from http://www. britannica. com/EBchecked/topic/206470/Fifth-Amendment/296512/Takings In text (Smenkowski) Smith, K. B. , Greenblatt, A. , & Mariani, M. (2011). Governing states and localities. (3 ed. , p. 439). Washington, D. C. : Cq Staff Directories.

Should the primary objective of management be to increase the wealth of shareholders and owners

Should the primary objective of management be to increase the wealth of shareholders and owners Introduction Management has become a very important aspect that assists businesses in strategizing on growth and improving performance. Business oriented organizations are often made up of different groups of people who contribute to the general outcomes of the business. The entrepreneurs and shareholders are among the people who form the business organization. These two groups hold substantive amount of financial assets of the business. Are these the main shareholders of the organization? This is one of the main questions in the minds of managers. This issue complicates the exercise of management. However, management is a wide concept especially when applied to business firms.Advertising We will write a custom essay sample on Should the primary objective of management be to increase the wealth of shareholders and owners? specifically for you for only $16.05 $11/page Learn More There are different aspects of management that concentrate on various functions w ithin the firm. For instance, there is finance management that centers on finances of the organization. Shareholders and business owners often concentrate on this function (Geoffrey, 1994). Shareholders of the organization are often interested in the financial worth of a firm. This is because this is what assures them of getting tangible returns out of the investments they make in the firm (Beurden and Go ¨ssling, 2008). Therefore, the essence of management in the firm is not only to increase the wealth of shareholders and business owners. Management is a large function that concentrates on the wellbeing of the entire business. The stakeholders include: Shareholders, employees, the real business owners and the general corporate environment that benefit from the business outcomes. An ethical model of doing business is discussed in this paper. This helps in explaining the essence of sustainable business practices that form the core of management in a business firm. Management, as an organizational exercise, concentrates on the sustainability of the business. Therefore, the increase of the wealth of the shareholders is just one of the many factors of sustainability in the organization. Shareholders always remain interested in the general financial outcomes of the organization. This is because they gain significantly when the firm makes a lot of wealth (Geoffrey, 1994). However, there are many parameters to whether firms are accumulating more wealth or not. This leads to a different aspect of management in the organization. The accumulation of wealth is often an end product of the entire management exercise within the firm (Cosans, 2009).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Overview of the role of the business – wealth maximization and corporate social responsibility in management For a long time in history, it has been argued by experts and scholars of business management, that the main purpose of establishing business firms is making profits. This is a rational argument because no one can invest in a business venture without the motive of making money or wealth that comes in terms of profits. It is also assumed that when a business firm is making profits, the firm is most likely to benefit the society through increased employment. Nevertheless, it should be noted that business firms operate within the environment and should respect and contribute to the wellbeing of the environment (Chapman III and Whitmore, 1974). Business owners and other shareholders should not concentrate on the accumulation of wealth alone. They should also focus on the environment that helps the business in making the wealth. There are inconclusive debates regarding the extent to which management of firms has to embrace social responsibility. This is in respect to businesses that they manage. It is argued that social responsibility is critical to businesses because it paints a good picture of the business. In turn, this helps the firms to attract customers hence, fetching more profits (Hite and Vetsuypens, 1989). According to Chapman III and Whitmore (1974), there is a lot of interest in researching about the profit motives of businesses visvis the management through the aspect of embracing corporate social responsibility. It is evident that businesses are managed to maximize on profits. However, profits cannot be generated for a long time if all business practices are not structured in a way to cater for the needs of the environment in which they operate. Therefore, maximizing wealth for any business cannot be easily separated from the aspect of corporate social responsibility (Smith, 2003). However, it is argued that, due to the prevailing competition in the business environment, modern firms respond by concentrating on activities that directly increase the wealth of business. There is an inconclusive debate on whether this works well for the sustainability of profits in these organizations.Advertising We will write a custom essay sample on Should the primary objective of management be to increase the wealth of shareholders and owners? specifically for you for only $16.05 $11/page Learn More Firms that operate on a large-scale struggle to define ownership and control in the pursuit of organizational objectives. These objectives often center on the creation and sharing of the wealth of the organization. The shareholders and business owners are often characterized by a common aspect. In most cases, they are interested in making as much wealth as possible from the business. Unfortunately, this often puts them at loggerheads. This happens at times when they fail to concur on how to share the profits or business wealth. To make significant gains from business, the business owners will mostly pursue objectives that are considered to be inconsistent with the motives of the share holders. The shareholders’ main objective is geared towards maximization of wealth (Chapman III and Whitmore, 1974). Manager and shareholder conflicts have remained elusive. This has led to firms engaging in contracts and market control mechanisms that aim to reduce conflicts. This aims at reducing what is referred to as managerial opportunism, on the part of the business owners. Notably, wealth maximization remains to be a critical issue in the management of business firms. Shareholders always monitor the operational functions of the organization. Therefore, they can always be updated on the amount of wealth being accumulated by the business (Hadani, Goranova and Khan, 2011). This affects the direction of management within firms. The whole exercise of management is highly watered down due to loss of objectivity in management. Management should not be subjective, and needs to be objective in its operations. The management should concentrate on wholesome aspects that are likel y to make the internal and external environment of a firm favorable. Wealth maximization should be regarded as one of the strategic issues in the management exercise, as opposed to the main issue in the organization (Wilcke, 2004).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More There are several theories that attempt to explain the essence and main purpose of business firms. Most of the theories focus on corporate governance, executive compensation policies and practices, and the social and economic performance of firms. One of these theories is the shareholder theory, which is derived from economics. This theory centers on the purpose of firms. Most firms aim at creating wealth for firm owners while ignoring the interaction of the firm with many other areas. The other areas include the role of the firm in enhancing societal development by engaging in societal roles (Ghoshal, 2005). There is also another stakeholder theory that pays attention to both the creation of wealth in firms and maximization on the role of the firm in discharging its roles within the society. This theory is an extension of the first theory because it considers the management of firms as an elaborate exercise that focuses on the entire business environment. Therefore, this is the mos t preferred theory in modern management because it considers other functions like corporate social responsibility. These other aspects are regarded to be equally important for the success of the organization. This theory contrasts with the argument presented by Friedman, which the major aim of creating firms is to make money and not enhancing the moral or social development of the society. Moral and social developments are activities that should be enhanced by the government and other not-for profit agencies (Husted and Salazar, 2006). Friedman argued that the engagement in moral and social issues by firms leads to the diversion of resources. In turn, this minimizes the wealth maximization motive of firms. However, businesses exist in the society, and it is obvious that the society has an impact on the performance of firms. The management of firms cannot be secluded from the society. This is because business firms exist and are supported by the same society where they exist. Therefo re, the management should consider the aspect of societal development as they strive to establish the right channels of maximizing wealth or profits (Pfarrer, 2010). Bejou (2010) has noted that the corporate social responsibility is important in improving the management practice in organizations. This is because it adds a human touch to the profit objectives of firms. Good management practices are not only evaluated basing on the wealth accumulated by the firm, but also on adherence to ethical standards, respecting the law and maintaining good corporate citizenship. However, the standardization of the corporate social activities for companies remains a problem. This is because the standards are not set based on empirical findings and explanations. Companies may act as if they actively engage in corporate social responsibility. On the contrary, there are some companies that attach very little value to these activities. Business challenges and the role of shareholders Enhanced corpora te accountability is advocated in the turbulent business environment characterized by major difficulties like financial crises. This undoubtedly calls for responsibility on all people who make up business organizations. Firm shareholders have acquired considerable say in business firms to help in enhancing accountability. This is achieved through enlisting and overseeing the corporate affairs of business firms. Management visions of firms are crafted to go beyond the aspirations of shareholders in business firms. In fact, the management exercises embrace inclusive and sustainable strategies by engaging shareholders and stakeholders in making and abiding by the sustainable decisions. Leading firms in private and public sectors within the United States and the United Kingdom are embracing this practice. Firms in the private and public sectors are enlightened on this shift within the management paradigm (Shaw, 2009). Shaw (2009) noted that stakeholders are not only increasingly recogni zed in terms of the financial goals of goals of organizations, but also as part of the corporate plan crafters and implementers for firms. Corporate governance rules and principles in organizations are considerate of the interests of shareholders and stakeholders. Wealth maximization does not remain a norm because it used to be in ancient organizations. It is included and considered when organizations are making management decisions. Major management decisions are reached where the interests of business owners and shareholders intersect with the agreed corporate social values of firms. Efforts to encourage sustainability no longer lie with few individuals in the organization. This has been spread to include organizational shareholders. While profit maximization remains important for organizations, shareholders are slowly being discouraged from inclining their minds towards wealth maximization. They are being encouraged to focus on corporate development of the organization as a means through which the wealth of firms is maximized. Shareholding in business firms remains to be one of the emergent orders of investment. As the shareholders are taught to participate in the corporate affairs of the business, the management exercise is improved and made holistic. Financial risks often eliminate related risks within a firm. Financial rewards are considered as the end products of the management practice for shareholders and investors. However, this is not regarded as the leading factor in management (Harper, 2010). When firms focus on maximizing the stocks of shareholders, the firm is focusing on the support of a positive internal environment. The individuals who are mostly featured in this instance are employees working in different sections of the organization. This includes the production, marketing, and administration sections of the organization (Baker and Powell, 2005). This aims at increasing the price of shares on the stock so that the firm can make considerable profits. The profits should be distributed to shareholders and the business owner. However, the profits are no longer shared amongst the shareholders and business owners in whole. Instead, some of the profits are also invested in the society in terms of promoting a supportive environment for business. Without a supportive environment, the stock price of the company cannot rise. In other words, the corporate social responsibility is becoming an important facet of business management as it helps in fetching opportunities to enhance profits for a business organization. Corporate environments are crafted as part of the long-term management objectives of organizations. The long-term earnings are based on how the management sets an environment that is receptive and supportive to the firm. Therefore, all aspects of management should be given priority. This includes human resource management, financial management, corporate governance, marketing management and public relations. Raising the shareholders wealth brings about the positive prospects of organizational growth. However, it is derived from collective, organizational management that focuses on facilitating the entire departments of a firm (Moyer, Mcguigan and Kretlow, 2009). Research has shown that those organizations that focus on maximizing the social welfare in the society where they exist are bound to make significant profits. These firms maximize on participation in corporate social responsibility. The shareholders are derived from the business environment that is cultivated by the management. Many organizational managers have realized the essence of enhancing social welfare as this boosts the number of people who will be interested to invest in the firm. In other words, the way firms manage their operations is a precursor to the attraction of investors or shareholders of the firm. The success of corporate firms cannot be directly attributed to the maximization of shareholder value in the firm. Nonetheles s, this can be attributed to the successful management of the firm. On the other hand, maximizing the wealth or value of shareholding in a firm is still relevant because a firm is likely to lose its capital if the shareholders withdraw (McSweeney, 2008). Nowadays, organizations focus on the stakeholders rather than narrowing down and focusing on the business owners and the direct shareholders. Stakeholders are affected too, and this affects the operations of a firm. They have direct and indirect contribution to the general performance outcomes of a firm. Organizations are highly influenced by the general stakeholders more than the shareholders. Stakeholders include direct and indirect customers. Other stakeholders are the organizational employees, suppliers and distributors of the firm and the local communities. There is also the media, competitors, business partners, financers, and the government. The government comes in as business regulators and policy makers. In fact, organizati ons are defined in terms of stakeholders. A firm is defined as a composition of stakeholders. Therefore, all interests of stakeholders have to be given preference by the management of the firm. Managers are required to run the activities of the firm to benefit the entire firm. The rights of participation in decision making, as well as interests of all stakeholders should be safeguarded by organizational managers. In most instances, the interests of the firm owners and the main shareholders are compromised by the management of firms. This is meant to accommodate the interests of other stakeholders of the organization. An example of such a decision is cutting the prices of products in favor of customers (Fontaine, Haarman and Schmid, 2006). The resolution of conflicts of interest in firms is resolved by the management team. Conflicts often arise in organizations regarding the finances of a firm. Shareholders of organizations consider themselves as the prominent parties of the firm. Ho wever, strategic and financial management functions point to the importance of both the shareholders and other stakeholders of an organization. Firms have to cater for the interest of stakeholders and shareholders. The degree of concentration on the interests of the two groups is what theories of strategic and financial management are yet to agree. However, there seems to be an agreement that stakeholders and shareholders are of high value to firms, and should be regarded as critical by the management (Beurden and Go ¨ssling, 2008). Therefore, each of these groups is given preference when addressing organizational matters that are directly related to each. Firms are administered in the interest of the entire environment, and this includes the owners, shareholders and stakeholders. Therefore, organizational structures are being crafted so as to be accommodative to the interests of the shareholders, stakeholders and business owners. The management structures are not just based on th e interests of organizational shareholders and stakeholders (Vilanova, 2007). The concept of maximizing the shareholder value in the organization has been given a lot of emphasis by modern organizations. However, this is being checked to ensure that it does not derail the entire management function in organizations (The Chartered Institute of Management, 2004). According to Ahlstrom (2010), the profit making motive matters a lot for firms and has to be encouraged. Firms cannot operate without thinking on how they will make significant profits rather or else they risk failing to meet the definition given to business firms. The way firms conduct their activities has led to enormous criticisms. This makes them appear as if they are only interested in maximizing profits for the firm owners and shareholders. Firms that embrace good management practices end up achieving economic and societal goals. Firms have to be innovative by focusing on the broader picture of the business. This helps them meet their financial goals, as well as the social goals. Social goals end up stimulating a good economic environment for a firm. Apart from attaining financial goals, corporate social responsibilities are considered as important components of management (Beurden and Go ¨ssling, 2008). Conclusion From the ancient times, the goals of establishing firms have been entirely revolving around the maximization of wealth or profits. This made organizations to be seen as tools of enhancing profit maximization. However, there is a realization that firms should consider the entire environment in which they exist. Therefore, organizational management has become elaborate and increasingly proactive so as to enhance economic and social outcomes of a business firm. Maximization of wealth for business owners and shareholders are only reflected in the economic outcomes of business management. Otherwise, businesses are managed to achieve financial and social outcomes. Therefore, management cann ot be geared towards the realization of financial or economic goals only. The social aspect is equally important. Reference List Ahlstrom, D 2010, ‘Innovation and Growth: How Business Contributes to Society’ Academy of Management Perspectives, vol. 24, no. 3, pp. 11-24. Baker, HK, and Powell, GN 2005, Understanding financial management: a practical guide, Blackwell, Malden, Mass. [u.a.]. Bejou, D 2011, ‘Compassion as the New Philosophy of Business,’ Journal of Relationship Marketing, vol. 10, pp.1–6. Beurden, P and Go ¨ssling, T 2008, ‘The Worth of Values – A Literature Review on the Relation Between Corporate Social and Financial Performance,’ Journal of Business Ethics, vol. 82, pp. 407–424. Chapman III, FM and Whitmore, GA 1974, ‘Beyond Shareholder Wealth Maximization: Introduction,’ Financial Management, vol. 3, no. 4, pp. 25-34. Cosans, C 2009, ‘Does Milton Friedman Support a Vigorous Business Ethi cs?’ Journal of Business Ethics, vol. 87, pp. 391–399. Fontaine, C, Haarman, A, and Schmid, S 2006, The Stakeholder Theory. Web. Geoffrey, P 1994, ‘Shareholder wealth maximization: business ethics and social,’ Journal of Business Ethics, vol. 13, no. 2, pp. 125-134. Ghoshal, S 2005, ‘Bad management theories are destroying good management practices,’ Academy of Learning Education, vol. 4, pp. 75-91. Hadani, M, Goranova, M, and Khan, R 2011, ‘Institutional investors, shareholder activism, and earnings management,’ Journal of Business Research, vol. 64, pp. 1352–1360. Harper, HV 2010, Enlightened Shareholder Value: Corporate Governance Beyond the Shareholder-Stakeholder Divide,’ Journal of Corporation Law, vol. 36, no. 1, pp. 59-112. Hite, GL and Vetsuypens, MR 1989, ‘Management Buyouts of Divisions and Shareholder Wealth,’ The Journal of Finance, vol. 44, no. 4, pp. 953-970. Husted, BW and Salazar, J 2006 , ‘Taking Friedman Seriously: Maximizing Profits and Social Performance,’ Journal of Management Studies, vol. 43, no. 1, pp. 75-91 McSweeney, B 2008, ‘Maximizing shareholder-value: A panacea for economic growth or a recipe for economic and social disintegration?’ Critical Perspectives on International Business, vol. 4, no. 1, pp. 55 – 74. Moyer, RC, Mcguigan, JR and Kretlow, WJ 2009, Contemporary financial management. South-Western/Cengage Learning, Mason, OH. Pfarrer, MD 2010, What is the Purpose of the Firm?: Shareholder and Stakeholder Theories. Web. Shaw, W 2009, ‘Marxism, Business Ethics, and Corporate Social Responsibility,’ Journal of Business Ethics, vol. 84, pp. 565–576. Smith, NC 2003, ‘Corporate Social Responsibility: Whether or how?’ California Management Review, vol. 45, no. 4, pp. 52-76. The Chartered Institute of Management Accountants 2004, Maximising shareholder Value Achieving clarity in decision-mak ing: Technical Report. CIMA, Great Britain. Vilanova, L 2007, ‘Neither Shareholder nor Stakeholder Management: What Happens When Firms are Run for their Short-term Salient Stakeholder?’ European Management Journal, vol. 25, no. 2, pp. 146–162. Wilcke, RW 2004, ‘An Appropriate Ethical Model for Business and a Critique of Milton Friedmans Thesis,’ The Independent Review, vol. 9, no. 2, pp. 187-209. Should the primary objective of management be to increase the wealth of shareholders and owners Introduction Business administrators and scholars often debate about the goals that managers have to achieve. It is often believed that these professionals should be mostly concerned with the wealth of owners and shareholders.Advertising We will write a custom essay sample on Should the primary objective of management be to increase the wealth of shareholders and owners? specifically for you for only $16.05 $11/page Learn More Such an assumption can seem quite plausible, because every company will cease to exist provided that it does not bring revenues to its investors. However, it also has to create the value for customers, community and employees. Without it, the very sustainability of this organization can be put under threat. Moreover, a manager who thinks only about financial benefits, can compromise his/her ethical principles. This paper is aimed at showing that maximization of profits can be possible only if the management of a company strives to foll ow both ethical and legal rules. Their main goal is to create value for customers, employees, and the society in general. They should not focus only on the needs of owners or stockholders. This is the main thesis that should be discussed. The first section of this paper will analyze theoretical origins of the belief that the primary objective of management is to maximize the wealth of owners. In particular, it is necessary to focus on the works of Milton Friedman and the way in which his ideas could be misinterpreted. Moreover, this section will show that long-term profitability of businesses is impossible without ethics and social responsibility. The second section will identify the benefits of creating value for various stakeholders. Finally, the third section will examine the dangers of thinking only about financial performance and profitability.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Le arn More Profits as a core objective of management The idea that wealth maximization should be the top priority for managers has been discussed in the works of many economists. One of them was Milton Friedman who argued that businesses had to concentrate on their profitability (Friedman as cited in Cosans 2009, p. 391). This argument could be very appealing to many corporate executives because by adopting this approach they could resolve or even dismiss many ethical dilemmas and problems. Moreover, many business administrators assumed that a company could do whatever it deemed necessary provided that these actions did not contradict the law (Cosans 2009, p. 392). Therefore, this business philosophy frees an organization and its managers from many restrictions and obligations that can be related to the rules of ethics. This is why it enjoyed popularity for a long time. Even now many business administrators apply this principle, even though they can speak about corporate socia l responsibility of their companies. Unfortunately, many business administrators and even scholars simplify the ideas of Milton Friedman. In fact, he did not exclude ethics from the functioning of companies. He said that the activities of a profit organization â€Å"should be conforming to the basic rules of society† (Friedman as cited Cosans 2009, p. 393). Overall, he placed emphasis on such issues as compliance with the law, unacceptability of deception, and openness of the company (Friedman as cited Cosans 2009, p. 396). This entity was not allowed to disregard the needs of other stakeholders such as customers or workers. This is why ethics and profit seeking should not be separated from another. Thus, even if managers believe that their main task is to increase the wealth of owners and stockholders, they should not try to achieve this objective at any cost. Business administrators or corporate executives have to reconcile the needs of an organization with legal and ethica l standards; otherwise their work can hardly be viewed as successful.Advertising We will write a custom essay sample on Should the primary objective of management be to increase the wealth of shareholders and owners? specifically for you for only $16.05 $11/page Learn More Thus, those managers pursuing profits at any cost should not suppose that many scholars support this approach. There is no way in which one can reject the restrictions of business ethics. Ethical aspects of businesses continue to attract the attention of many scholars and many of them believe that ethics and responsibility are necessary for successful functioning of markets or even entire economies. For instance, William Shaw (2009) admits that businesses are driven by self-interest, yet, he also points out that by following only economic players can achieve long-term benefits only if they follow a certain set of rules (p. 568). To a great extent, the situation reminds the so-called priso ner’s dilemma in which a player has to sacrifice some of his/her interests in order to succeed (Shaw 2009, p. 567). For instance, car manufacturers have to place much emphasis on the safety of their customers, even though they have to incur extra expenses and even recall many cars. Provided that they choose to neglect this issue, they can simply lose the trust of their clients. In this regard, one can mention the notorious case of Ford Pinto. The management of Ford Corporation chose not to recall the car that had a poorly designed gas tank (Danley 2005, p. 234). When this information was revealed, the reputation of Ford Corporation suffered a severe blow. More importantly, their revenues began to decline. This case illustrates that ethics has to be an inherent part of businesses activities, because without them, no form of cooperation will be possible.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The thing is that business activities are premised on long-term cooperation and the formation or partnerships or alliances (Solomon 1999, p. 18). They can hardly exist provided that partners think only about their self-interests. Apart from that, this example shows that companies are dependent on many stakeholders, for instance, customers. Although, they do not own stocks of a company, they can strongly influence this organization. In this context, the term stakeholder can be defined as every person or organization that can affect a company is affected by it (Fassin 2012, p. 85). This is another reason why profit maximization cannot the sole objective of managers. On the whole, managers should not assume that ethical decisions always run against the self-interest of a company or individual. This is the assumption that only harms many businesses. Profitability and responsibility toward various stakeholders are quite consistent with one another. This is the main issue that business ad ministrators should consider. Such scholars as Bryan Husted and Jose Salazar (2006) argue that modern firms should not be forced to behave in a socially responsible way (p. 75). Under such circumstances, they will act as â€Å"coerced egoists† (Husted Salazar 2006, p. 76). Most likely, the managers of these organizations will only speak about social responsibility without actually practicing it. The main argument of these authors is that the ethical principles should be imbedded into the strategies of an organization. In their belief, the goals of stakeholders and stockholders do not oppose one another. In fact, one should draw a line between them. Managers should remember that it is possible to increase the wealth of stockholders without compromising ethical and legal norms. The following two sections will discuss various rationales for behaving in a socially responsible way. Creation of benefits for stakeholders At this point, it is necessary to demonstrate why managers sh ould pay attention to the needs of various stakeholders. First, even if a person assumes that the task of a business is the maximization of profits, there is still no clear-cut strategy for attaining this goal (Shaw 2009, p. 573). The need to increase revenues does not actually show the path that managers should take. Thus, one still has to evaluate alternative strategies that are available to the company. Some of them can correspond to the standards of corporate social responsibility while other cannot. In his article, David Ahlstrom (2012) points out that the most successful companies have some features in common; in particular, they are willing to create innovative goods or services that benefit customers and society (p. 12). These organizations create employment opportunities in the community and make the lives of people more comfortable. In other words, these companies strive to create value for various stakeholders. They have some of the following characteristics: 1) the empow erment of employees; 2) customer orientation; 3) the adoption of eco-friendly technologies; 4) accountability of corporate executives (Bejou 2011, p. 3). These are the most distinctive traits of these organizations. Among them one can distinguishing such corporations as Apple Inc, Google, ATT and many others. They occupy leading position in their markers. These examples are important because they show that a responsible behavior of a company does not necessarily harm its financial performance. Furthermore, one should take into account that people’s attitude toward businesses have evolved within the last fifty years. According to David Ahlstrom (2012), contemporary societies expect companies to bring benefits to the community (p. 22). These organizations should be accountable to both governmental organizations and community in general (Smith 2003, p. 63). Thus, a company that is driven only by self-interest will find it difficult to achieve success. The idea that revenues are the only goal of a business, could be acceptable thirty or forty years ago. However, it cannot be easily tolerated by people who live at the beginning of the twenty-first century. In the modern world, corporate social responsibility is a norm that an organization should adhere to. This is one of the issues that corporate executives should not overlook if they want to be successful in the workplace. It is hardly permissible to assume that advanced societies will tolerate pure pursuit of profits at the expense of the entire community. Furthermore, it is necessary to point out that for-profit organizations influence and can be influenced by a variety of people or organizations. Among them, one can single out stockholders, customers, governmental organizations, employees, trade unions, environmental organizations and so forth. Admittedly, stockholders occupy the most important place, because they invest capital in a company. Any company will simply go bankrupt provided that their needs are not fully met. Their prosperity should be the main priority for management. However, one should not disregard other stakeholders, such as customers or workers. They can affect the public image of an organization, its revenues, and internal performance. Without their commitment the very sustainability of a company can be jeopardized. Those business administrators, who focus only on the wealth of stockholders, can forget that their companies depend on other people, for instance, customers whose attitudes can profoundly impact the sales rates every company. Such corporate executives can actually lead the companies to stagnation. Therefore, managers should determine the way in which certain stakeholders can affect a company. In this way, they can better develop long-term strategies of this business. The main point is that businesses and stakeholders are interdependent entities and they have to find solutions that benefit each side. Additionally, one should note the majority of succe ssful companies are those ones which were able to win the trust of loyalty of the employees who are very influential stakeholders. If these people feel that they are valued by the organization, they will be more likely to be committed to the goals that the management sets (Bejou 2011, p. 4). They will be willing to defend the reputation of a business. More importantly, these people can hardly accept an idea that they are treated only as means for increasing the wealth of shareholders. If they realize that the management does not attach much importance to their needs, they will fewer incentives to work harder. The management will be able to motivate them only with the help of financial rewards or punishments. Moreover, one can even expect them to violate the rules that the management sets. Employees can also be considered as stakeholders and they can shape financial and organizational performance of every company. For instance, they can affect the company’s relations with its clients. Therefore, a good manager will try to find a compromise between the needs of these people and the interests of stockholders. This is one of the main tasks that corporate executives should try to cope with when they will develop long-term strategies of companies. When discussing the need for corporate social responsibility, one should not focus only on ethical considerations. It is also possible to mention economic rationale for adopting this strategy. The study carried out by Pieter van Beurden and Tobias Gà ¶ssling (2009) shows that companies, which adhere to the principles of CSR, usually yield better results (p. 409). These authors identify various forms of corporate social responsibility, namely, philanthropy, accountability to the public, environment protection, and promotion of diversity in the workplace (Beurden Gà ¶ssling 2009, p. 409). These scholars found a positive relationship between the ethical behavior of an organization and its financial performance. Soci ally responsible business activities can positively affect market return, share price appreciation, and stock performance (Beurden Gà ¶ssling 2009, p. 411). Surely, in each case, the degree of positive influence varies, but there is a marked correlation between business ethics and improved performance. Moreover, the researchers single out other benefits of corporate social responsibility (CSR). For instance, Jacqueline Cramer and Fred Bergmans (2003) identify the following advantages that CSR can bring: 1) a good reputation that is earned through ethical business practices; 2) improved energy efficiency that can be achieved through the use of alternative energy technologies; 3) greater commitment of workers; and 4) the trust of customers (p. 50). Some of these benefits can be measured quantitatively, in particular, economic efficiency, in turn, some of the advantages are intangible. Yet, in each case, CSR can give a company competitive advantage over its rivals. Yet, this goal can be attained only if managers strive to reconcile the needs of different stakeholders who do not necessarily have to be owners or shareholders. A good company should be able to identify the ways in which it can influence others; they also have to think about the possible impacts of stakeholders on their performance. This knowledge will help this organization acquire and retain leading positions in the market. The following section will focus on the risks that managers take when they focus only profitability. The drawbacks of disregarding corporate social responsibility Some corporate executives may be reluctant to follow the principles of CSR because possible advantages do not always yield numerical measurement. This is why one should mention that increased emphasis on the revenues can actually harm a company in the long-term. The thing is that such an organization can become unwilling to adopt new business models or technologies. In many cases, corporate executives pay attention on ly to the short-term profitability of their businesses and overlook the needs and values of other stakeholders. Secondly, they can overlook the risks that are associated with the pursuit of profits. Such corporate leaders can overlook the dangers to which their companies can be exposed to (Christopoulos, Mylonakis, Diktapanidis 2011, p. 11). They often forget that in most cases such a strategy only harms a business. For example, one can mention such a company as Lehman Brothers. This management of this corporation was primarily concerned with the increase of short-term profitability (Christopoulos, Mylonakis, Diktapanidis 2011, p. 11). Very little attention was paid to the obligations that Lehman had toward investors and their interests. Yet, they did not to assess the threats to which they were exposed. As a result of this policy, many employees and investors lost their money. One can even argue that the recent financial crisis can largely be explained by unscrupulous policies of many businesses and unwillingness to think about long-term growth of businesses. Thus, managers should remember about the dangers of looking only at financial performance, and disregarding the social performance of a company. As it has been said before, profitability of a company and ethical behavior are usually inseparable from one another. It should be noted that the majority of modern companies are not monopolies. Only such organizations can dictate their terms to the customers and sometimes even to the entire community. Nevertheless, the number of such monopolies was reduced to a minimum. As a rule, contemporary businesses have to face severe competition. They have to differentiate themselves among others only by creating a distinct value for the customers. Provided that this goal is not achieved, a company will become stagnant or simply lose its positions in the market. Those companies that are driven by the pursuit of profits often fail to identify the needs and values of cus tomers. Therefore, it will be difficult for this organization to differentiate its products from those ones manufactured by its competitors. In the future, the revenues of this company may decline. Thus, mere pursuit of revenues can actually be self-defeating because it does not allow a company to create innovative products. Thus, managers should take this possibility into account and minimize such risks. Furthermore, one should not forget that businesses can be affected by governmental organizations. For instance, there are environmental agencies, departments of labor, internal revenue services, trade commissions, and so forth. They are able to impose fines on the company or develop regulations that can restrict the activities of many businesses. These institutions have the capacity to coerce every company. Besides, those businesses that disregard the rules of ethics often have to face many lawsuits. Sometimes, the costs of these lawsuits can be devastating for an organization. Thu s, there is a distinct and economic need to think about the needs of the community, customers, or employees. Loss aversion may not be the most ethical reason for behaving in a socially responsible way, but even in this way one can see that an unethical business is more likely to fail. Managers, who are concerned only with revenues, run the risks of violating the law and losing money. So, one can argue that there are legal reasons for thinking about corporate social responsibility. Conclusion This discussion indicates that profitability of an organization should not be separated from ethical considerations because without them businesses will not be able to achieve sustainable growth. Secondly, even if managers assume that their task is to increase the revenues of owners or stockholders, they should not forget that this goal can be achieved only if they meet the needs of various stakeholders, namely employees, customers, governmental organizations, and the community in general. They are capable of boosting the financial performance of a company, but they also can ruin it. The most rational strategy for a business is to accept the idea that self-interest should be restricted by ethical constraints, especially the necessity to promote the wellbeing of a community. Overall, special attention should be paid to customers, workers, and governmental organizations since they are the most influential stakeholders. The managers have to find a way in which the financial goals of a business can be made consistent with the principles of corporate social responsibility. References Ahlstrom, D 2010, Innovation and Growth: How Business Contributes to Society, Academy Of Management Perspectives, vol. 24 no. 3, pp. 11-24. Bejou, D 2011, Compassion as the New Philosophy of Business, Journal Of Relationship Marketing, vol. 10 no. 1, pp. 1-6 Beurden, P, Gà ¶ssling, T 2008, The Worth of Values – A Literature Review on the Relation Between Corporate Social and Financial Perf ormance, Journal Of Business Ethics, vol. 82 no. 2, pp. 407-424. Christopoulos, A, Mylonakis, J, Diktapanidis, P 2011, Could Lehman Brothers Collapse Be Anticipated? An Examination Using CAMELS Rating System, International Business Research, vol. 4 no. 2, pp. 11-19. Cosans, C 2009, Does Milton Friedman Support a Vigorous Business Ethics?, Journal Of Business Ethics, vol. 87 no. 3, pp. 391-399. Cramer, J Bergmans, F 2003, Learning about Corporate Social Responsibility: The Dutch Experience, IOS Press, New York. Danley, J 2005, Polishing up the Pinto: Legal liability, moral blame, and risk, Business Ethics Quarterly, vol. 15 no. 2, pp. 205-236. Fassin, Y 2012, Stakeholder Management, Reciprocity and Stakeholder Responsibility, Journal Of Business Ethics, vol. 109 no. 1, pp. 83-96. Husted, B, De Jesus Salazar, J 2006, Taking Friedman Seriously: Maximizing Profits and Social Performance, Journal Of Management Studies, vol. 43 no. 1, pp. 75-91. Shaw, W 2009, Marxism, Business Ethics, and Corporate Social Responsibility, Journal Of Business Ethics, vol. 84 no. 4, pp. 565-576. Smith, C 2003, ‘Corporate Social Responsibility: Whether or How?’, California Management Review, vol. 45 no. 4, pp. 52-76. Solomon, R 1999, Game Theory as a Model for business and business ethics, Business Ethics Quarterly, vol. 9 no. 1, pp. 11-29.

How the Three Types of Conjunctions Connect Ideas

How the Three Types of Conjunctions Connect Ideas How the Three Types of Conjunctions Connect Ideas How the Three Types of Conjunctions Connect Ideas By Mark Nichol This post defines and discusses the three types of conjunctions (words or phrases that serve as a bridge linking two words, phrases, clauses, or sentences): coordinating, correlative, and subordinating conjunctions. Coordinating Conjunctions Coordinating conjunctions, also called coordinators, join words, clauses, or sentences of equal importance. The most common coordinating conjunctions, frequently listed in the following order to reflect the use of the mnemonic FANBOYS, include for, and, nor, but, or, yet, and so. Others are neither, only, and â€Å"no more,† as well as several British English conjunctive phrases that combine one of the six conjunctions besides nor with that one (such as â€Å"and nor†). Examples of the ten listed conjunctions in use, accompanied by a description of their functions, follow: I walked, for I was in need of exercise. (rationale) I walked, and I ran. (addition) I neither walked nor ran. (alternative without contrast) I walked, but I ran, too. (contrast or exception) I (either) walked, or I ran. (alternative with contrast) I walked, yet I ran, too. (contrast or exception) I walked slowly, so I ran to catch up. (consequence) I don’t walk; neither do I run. (addition) I don’t walk; no more do I run. (addition) I would walk, only I run. (contrast) Note that the distinction between nor and or, which are generally accompanied, respectively, by neither and either (although the latter is parenthesized in the pertinent example because it is optional), is that with neither/nor, the choices do not affect each other, whereas with either/or, one choice cancels the other out. But and yet are virtually interchangeable, while the three addition conjunctions, and, neither, and â€Å"no more,† are listed in order of formality, with â€Å"no more† generally restricted to ritualistic or poetic usage. Only is used in the sense of â€Å"That [one idea] would be true if this [another idea] were not.† Correlative Conjunctions Correlative conjunctions include, among others, the following word or phrase pairs, which function to compare two pairs of words or phrases in a sentence that have equal weight; each is followed by an example: as much/as: Vacations like that can be a pain as much as they are a pleasure. as/as: This party is as dull as I expected it to be. both/and: Both the car and the truck are new. either/or: Either go now, or wait until later. just as/so: Just as you enjoy going to the theater, I like watching movies. neither/nor: Neither my father or my mother was born here. no sooner/than: No sooner had she read the letter than he arrived. not/but: It is not me but her who is to blame. not only/but also: I am not only tired but also angry. rather/than: I would rather play tennis than golf today. the/the: The more you read about it, the greater a problem it seems to be. whether/orv We couldn’t tell whether the baby is a boy or a girl. Some sentences incorporating correlative conjunctions are easier to construct than others. Those involving either/or and neither/nor, and â€Å"not only†/â€Å"but also,† are often erroneously composed because the first word or phrase is incorrectly situated in the syntax of the sentence. Note, for example, that in the following sentence, the placement of â€Å"either be able to† suggests that â€Å"carry on† will have a counterpoint later in the sentence: â€Å"Smith should either be able to carry on investing via his equity plan or by using the tax shelter within the new savings account.† However, the counterpoints, separated by or, the second of the two correlative conjunctions, are â€Å"his equity plan† and â€Å"using the tax shelter,† so either should immediately precede the first of the two choices, just as or immediately precedes the second choice: â€Å"Smith should be able to carry on investing either via his equity plan or by using the tax shelter within the new savings account.† Likewise, in â€Å"People did not only see him as a great athlete but also as a great man,† the suggestion is that people did two things in relation to the subject, including seeing him and something else. However, the intended meaning is that they saw him in two contexts, so â€Å"not only,† like â€Å"but also,† applies to saw and should therefore follow it, while â€Å"not only† immediately precedes â€Å"as a great athlete,† just as â€Å"but also† immediately precedes â€Å"as a great man†: â€Å"People saw him not only as a great athlete but also as a great man.† Subordinating Conjunctions Subordinating conjunctions, which join independent clauses and dependent clauses, or introduce adverbial clauses, include, among others, the following words and phrases: after although as â€Å"as far as† as if â€Å"as long as† â€Å"as soon as† â€Å"as though† because before â€Å"even if† â€Å"even though† â€Å"every time† if â€Å"in order that† once â€Å"provided that† â€Å"rather than† since so â€Å"so that† than though unless until when whenever where whereas wherever while why An adverbial clause is the beginning of a sentence such as â€Å"After searching the desk, I checked the file cabinet.† The same sentence can be inverted so that the subordinating conjunction links the independent clause â€Å"I checked the file cabinet† and the dependent clause â€Å"searching the desk.† Filling a similar role are conjunctions technically known as complementizers, such as that and whether, which turn a clause into a sentence’s subject or object. Examples include that in â€Å"John said that she was going to be here† (although that as a complementizer is generally optional) and whether in â€Å"I don’t know whether I can attend.† (Here, as in many but not all usages, if is interchangeable with whether.) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Grammar category, check our popular posts, or choose a related post below:100 Whimsical WordsProbable vs. Possible15 Names and Descriptions of Effects

Space Analysis Essay Example | Topics and Well Written Essays - 1750 words

Space Analysis - Essay Example Here, most of the people are unknown to each other and they are related on the basis of their category (Minton, 2012). The case study here is based on Sulzer-Areal in Winterthur, Switzerland. The main focus of the study is to understand how the free area meant for iron and steel factory complex has been converted into public space (King, 2011). The old industrial area of Sulzer-Areal (Fig 1) is located in the center of Winterthur, Switzerland. In the year 1834, it was first built by the Sulzer brothers and the area is spread over twenty hectares till Zurich road and railway. The industrial area reflects the golden days of mechanical engineering in Switzerland. In 1980, a law was passed to expel the heavy industries out of the main city area of Winterthur and from then on, lots of suggestion has been proposed for Sulzer-Areal. The place was much into a state of transition from 1990 and in 1992, the idea of complete demolition of the area was rejected. The owner of the space, Sulzer Immobilien AG group, proposed a very high budget and international project called the ‘Megalou’ for the complete restructuring of Sulzer-Areal (King, 2011). But due to recession, the entire project lost its luster and was left with no tenants and investors. The situation demanded a rethinking, as the operation of the space was not possible because of the huge investment required. So, it was decided to make some superficial changes in the existing buildings and convert it into a public space that will help to rebuild the area in the future. The industrial buildings were slowly transformed into districts. Now the area is a mix of educational institutes, residential complexes, workplaces and leisure. Thus, the area now has a whole new and exciting charm as a public space (King, 2011). The entire study of the Sulzer-Areal case study has been done by keeping in focus certain points that will help the reader understand how the entire