Ip Proposal free essay sample

Tech) from Kalyani University, West Bengal. Currently a second year student of the Post Graduate Program, 2004-2006 at IIM Ahmedabad, he did his summer internship with ICICI Prudential LIC Ltd. on market penetration strategy in the high net income segment. †¢ Saugat Tripathy is a Computer Science Engineer from Delhi College of Engineering, and has worked Sapient Corporation for one year as an associate of technology. Currently, a second year student of the Post Graduate Program, 2004-2006 at IIM Ahmedabad, he did his summer internship with Star India Pvt. Limited on the feasibility of a separate channel / channel extension for rural India. Area of Project: †¢ The project deals specifically with Pricing and hence, is under the Marketing Area. Term in which project is credited: †¢ Term 5 Project Guide: †¢ Prof. Arvind Sahay Introduction Pricing is one of the most important variables in the entire marketing mix of any company. But it is rarely given the importance that it deserves. We will write a custom essay sample on Ip Proposal or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Most companies follow cost-plus pricing or competitive pricing techniques to price their products. These methods are not oriented to customer demands or the value that the customer may derive from the product. Hence, more often than not the product is either over-priced or under-priced. Reversing a pricing decision is very difficult to implement. Hence, in case of over-pricing the sales of the new product may fail to take-off and in case of under-pricing the consumer surplus is left on the table. Most of the marketing mix variables are decided based on market research so that the entire process is customer oriented. To do the same for pricing, one needs to know the underlying price sensitivity of the target customer base. There are many ways to do find out the price sensitivity of demand. Some of the most popular ones are 1. Conjoint Analysis 2. Price Metering 3. Dynamic Pricing All of these methods are very costly for most companies as discussed below. Preliminary studies show that conjoint analysis requires two separate surveys. The first one is used to validate the attribute space. The second one is used to find out the preferences of people – i. e. comparison of the attributes. Moreover the sample size required for both the surveys is generally large to get a reliable result. The whole process takes time, money and qualified manpower. Therefore it is very resource intensive. Price metering involves asking people their threshold prices. This is more complex than it sounds because very few people can decide what their threshold prices are. Therefore a large number of responses are required to arrive at aggregate threshold levels that have small deviation. Hence, this method although simple to administer, is not very reliable and is also costly. Dynamic pricing is another method to find out price sensitivity curve. But this involves changing prices over time and space. Therefore it is essential that people being subjected to different prices are not allowed to communicate with each other. This is very difficult to ensure. If people come to know that they have been charged different prices then not only the brand but also the company (in case of a multi-brand company) and the retail store earns a bad reputation. Hence, this is a very risky proposition and also very difficult to convince the retailers. Therefore small and medium sized companies cannot undertake these market research methods. Consequentially their pricing decision is always sub-optimal. Coming up with a generic model to measure price sensitivity is difficult, due to the following reasons – †¢ There is a significant difference in the way the purchase decisions are made for different goods. While purchase decisions for consumer durables take up considerable amount of time, the FMCG products can be considered as low involvement goods. †¢ The various options available for a good and level of differentiation between them also affect sensitivities towards prices. For e. . while buying a commodity, like electricity. Here, neither does one have the option of choosing a vendor, nor the option of not buying it. †¢ While purchasing a customized product, like an IT product for solving a business problem of a company. The price sensitivities here depend of various things like the various relevant features of the product, after sales service, company credibility and the monetary value of the deriv ed benefits from the product (like time saved, number of people who can be replaced, etc) The four product categories We thus divide the products into four categories, and believe that we need to study the measurement of their price sensitivities differently – †¢ FMCG goods †¢ Consumer durables †¢ Commodities †¢ IT solutions and other B2B products This project is intended to develop a cost-effective model for determining price sensitivity of demand for †¢ FMCG good –Toothpaste and †¢ Consumer good – Colour television Objectives †¢ To develop an alternative and cost-effective model to determine price sensitivity of demand for the two categories – toothpaste and colour television. Scope The scope of the project is limited to the premium brands of toothpastes (Colgate, Close-up, Pepsodent, etc) and conventional 21† colour televisions (LG, Sony, Onida, etc) We also intend to look at historical quarterly sales volume and price data for these brands for the last 5 years, in case we get this data. Research Questions †¢ What are the key factors that drive consumer buying decision in the two different product categories and what is the relative importance of price in the consumer buying decision? †¢ What is the price awareness of consumers? How do discounts or some other indirect price changes affect the probability of a buy? Review of Different Methods for Measuring Price Sensitivity Common methods of measuring price sensitivity †¢ Conjoint or Trade-off Analysis A popular experimental technique for measuring sensitivity to price as well as other product attributes, Conjoint analysis disaggregates a product’s price into the values consumer s attach to each attribute and helps in identifying the differentiation value of unique product attributes, design new products with attributes that consumers are willing to pay for and the price that consumers are willing to pay. However, the data required for a conjoint analysis requires an extensive survey conducted by the researcher, wherein the respondent is asked to make choices between pairs of fully described products or between different levels of just two product attributes. This makes the method more costly in terms of resources and time in comparison to simple surveys, despite the fact that it provides much more information †¢ Price Metering Price metering is another technique to determine the effect of the interaction of price and quality on the consumers’ perceptions of value. Robert C. Lewis and Stowe Shoemaker describe in their paper â€Å"Price sensitivity Measurement- A tool for the Hospitality Industry† the usage of the price metering method to gauge price sensitivity in the hotel and restaurant industry. The model as indicated in the paper is based on data obtained from respondents on the following questions: 1. At what price on the scale do you consider the product or service to be cheap? 2. At what price on the scale do you consider the product or service to be expensive? 3. At what price on the scale do you consider the product or service to be too expensive, so expensive that you would not consider buying it? 4. At what price on the scale do you consider the product or service to be too cheap, so cheap that you would question the quality? The responses to the above questions are statistically collated and analyzed using graphs as shown below: [pic] The paper states that the degree of price sensitivity depends on the relation between the indifference percentage, stress level and the range of acceptable price. While, a combination of low indifference percentage levels, high stress levels and a narrow acceptable price range indicates a sensitive market, a combination of high indifference percentage levels, low stress levels and a broad acceptable price range indicates a less sensitive market. The paper also suggests that the model enables comparison of the current price of a product or service with the acceptable price range. Further, price metering is an easy to use model, which is cheaper in terms of resources and time needed and does not require special knowledge or skill on the part of either the researcher or the respondent. Other Approaches or Methodologies After doing a survey of the literature available on measuring price sensitivity the following methods were seen to be suitable for a quick and less resource intense way of measuring price sensitivity. †¢ Self-Report Method Goldsmith and Newell had done a study to correlate price sensitivity with innovativeness – tendency of some users to try out new products. A 7 item likert scale questionnaire was constructed from a 6 item Likert scale questionnaire for a similar study done by Goldsmith in 1996. The questionnaire is based on the buying behavior of â€Å"innovators†. It questions people on two factors – one which ascertains their level of innovativeness and the other which ascertains their level of price sensitivity. Each of the 7 questions were to be rated on a 5-point response format. The sample selected was not random but reasonably diverse and the size was 457. Only one survey was conducted. Factor Analysis was done and the results were checked for reliability, consistency and construct validity. The data analysis was aimed to prove the hypothesis that innovativeness is positively correlated with low price sensitivity. Another interesting aspect of the study is that it has tried to compare innovativeness among different segments of the population divided on the basis of demographics. For example, it was found that women are more likely to try out newer fashion products than men and also they were less sensitive about price. The implications could be better targeting of individuals based on demographic factors when a new product is introduced and thus better extraction of the consumer surplus. This sort of a simple questionnaire can be used on people to ascertain their level of price sensitivity. An advantage is that the survey can be conducted over mail or internet. †¢ Through Interviews Van Helden had done a study in 1978 to find out price sensitivity in a way that was quicker and cheaper than conjoint analysis. The study was done to find out price sensitivity of demand for electric power. The respondent was asked just 2 questions: a. Would he decrease power consumption if price of power rose? The options were: i. Yes ii. No iii. Yes but he does not intend to. b. If the respondent chose the last response then by how much will the price of electricity will have to rise for him/her to reduce consumption? The options were classified into the following classes: i. 0 to 5% ii. 6-10% iii. 11-20% iv. 21-30% v. 31-50% vi. 51% or more Based on the answer, his price sensitivity is calculated as follows: The actual price increases are also divided into classes. The classes for actual price increase and threshold price increase for consumer to reduce consumption are balanced. Then if a respondent says that he will reduce consumption if price rise is 18% then the decrease in consumption for 5% and 12% (these are the class averages) will be 0, whereas for 18% the decrease in consumption will be 6% (18%-12%) and for 25% it will be 13% (25%-12%). This is based on the assumption that relative decrease in consumption is equal to the difference between actual price increase and threshold price increase. The individual price sensitivity curves are then aggregated to give the aggregate price sensitivity curve. There were around 300 respondents on whom the study was conducted. The study also collects such information as income, number of family members in the household, number of electrical appliances which can be used less if required, etc. The limitation of the study was that it requires people to have a clear idea as to the level of price rise after which they will reduce consumption. Moreover the way the individual sensitivities have been calculated may be challenged. For other products which are not necessities and are not supplied by a single supplier, relative prices of substitutes and competitor’s products need to be taken into account. Another limitation is that fact that people had to be interviewed and it cannot be done through mailers. Methodology: 1. What are the key factors that drive consumer buying decision in the two different product categories and what is the relative importance of price in the consumer buying decision? The key factors and the relative importance of price in the consumer’s buying decision process for the two product categories, viz. , premium toothpaste and conventional 21† colour television need to be determined in order to understand the drivers of price sensitivity in the above product categories. This would probably require a preliminary research and survey, which would be carried out as a representative survey in the city of Ahmedabad. 2. What is the price awareness of consumers? The determination of the level of the price awareness of the consumers of the two product categories would enable us in establishing an idea about the price sensitivity of the consumers as well as help in validating the model to be developed. This may as well be done through a survey of the consumers . 3. How do discounts or some other indirect price changes affect the probability of a buy? Evaluating the effect of discounts, indirect price changes and other offers would help in establishing the level of price sensitivity in the market for the two product categories. Further, this would enable us to determine the relative importance of such price changes on the model to be developed. Proposed Model for Measuring Price Sensitivity: Measuring price sensitivity of FMCG goods Historical data of sales and price variations is a good place to start if one wishes to measure the sensitivities of a product. If one has the data for the last 8 years (say), we can create a simple regression of the form –

How the Puritans Differed from the Pilgrims

How the Puritans Differed from the Pilgrims The Puritans and the Pilgrims were two significant immigrant groups who moved from England to America in the 1600s. Both groups existed in England at a time when the country underwent a break with Catholicism. Following this break with the Catholic Church, The Church of England was established and every Englishman was required to acknowledge its authority.Advertising We will write a custom essay sample on How the Puritans Differed from the Pilgrims specifically for you for only $16.05 $11/page Learn More This new state of affairs led a group of religious people to seek immigration to the New World so that they could exercise their religious freedoms. Thus in the early 1600s, the Pilgrims and the Puritans headed left England for America out of religious considerations. This paper will highlight the major differences between the Puritans and the Pilgrims. The most significant difference between the two groups is that while the Pilgrims desired a separation of church and state, the Puritans only wanted to purify the Church of England from within. The pilgrims did not want to belong to the Church of England and they took to holding meetings in barns and homes. These separatists formed their own religious rules and traditions (Velm 83). Because of this, the King of England persecuted the Separatists. These pilgrims therefore moved to America, which was viewed as a place where they could have the freedom to worship the way they wanted. The Puritans on the other hand viewed did not seek a separation from the English establishment and only wanted to carry out reforms to remove corruption from the church. The Puritans emigrated to the New World since they were persecuted in their attempts to instigate reforms in the Church of England.  The two groups also differed in their perception of God. The Puritans deemed religion as a guideline for everyday living and God was regarded as a strict supernatural being who ruled over all. The Puritans laid great emphasis on spirituality and members of this group had great biblical knowledge (Conforti 190). Owing to their concern for Christian purity, the Puritans were strict in their way of life. Conversely, the Pilgrims had a more accommodating perception of God who was viewed as a benevolent and lenient ruler who could forgive easily. The pilgrims had a more liberal approach to worship and religion and little emphasize was made on spirituality. The Pilgrims way of life was more tolerant and it did not have many restrictions.  The other difference between the two groups is that while the Pilgrims emphasized on individual righteousness before God, the Puritans were committed to corporate righteousness. The Pilgrims were in favor of a strong separation between the church and state and for this reason; they were regarded radical rebels (Velm 83).Advertising Looking for essay on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More To this group, each person was accountable for his or her own actions to God and corporate righteousness was unbiblical. The Puritans on the other hand supported corporate worship and deemed the state as integral to the perpetration of religion. The Puritans were of the opinion that the role of the government was to enforce Gods laws. The Puritans and the Pilgrims played a major role in the development of the American colonies. This paper set out to articulate the difference between the two groups. To this end, it has documented that the major difference was that the Pilgrims were Separatists while Puritans wanted to purify the Church of England. In spite of their differences, the two groups move to the New World where they were able to practice the religious freedoms they did not enjoy in England. Conforti, Joseph. Imagining New England: Explorations of Regional Identity from the Pilgrims to the Mid-Twentieth Century. Carolina: University of North Carolina Press, 2001. Print. Vel m, Greg. Wiley AP U.S. History. NY: John Wiley Sons, 2012. Print.

E-Business report Assignment Example | Topics and Well Written Essays - 2000 words

E-Business report - Assignment Example According to the Entertainment and Leisure Software Publishers Association (ELSPA), "the UK gaming industry recorded a trade close to 200m in 2005 and is on a continuous inclination". These facts are favorable to the success of GameODrome. Being nave, GameODrome has to compete with several competitors and prove to the consumer that striking a deal with them is easier and more accessible. The advent of Internet has drastically changed lifestyles. E-Marketing is the latest revolution in Internet which allows buying goods while sitting at the luxury of one's home. Many companies now provide their sales and services through internet. One should know and understand various frameworks of E-marketing and their role in promoting a company. E-Marketing consists of several theoretical models, which provide a company with the tools to support the essential elements of marketing, namely price, promotion, product and place. The important models are: Merchant Model: This model is typically used by traders, resellers, wholesaler and retailers of goods and services. It includes 24x7 ordering and one to one custom marketing (embellix, 2000). This would be the most efficient solution for GameODrome, as its main form. It provides catalogues which make it easy for the consumer to choose a product. Auction Model: This model emulates the traditional 'bidding' model. It implements the bidding mechanisms by presenting goods and their value online. For GameODrome, this model would not be an immediate prospective. However once GameODrome establishes itself in the online industry, it can use this model to make 'year-end sales' and allow flagship firms to auction their goods. Manufacturer Model: It is used by the manufacturers directly to communicate to the consumers about their goods and services. Affiliate Model: In this model a company becomes an 'affiliate' of another company to advertise itself or its products and needs to pay certain amount for using it. This model can work well as a secondary model for GameODrome. Advertising Model: In this model, a company uses another website to advertise with the use of banners. Subscription Model: This model is generally used by Online Libraries and Scientific Organizations, where certain amount has to be paid as subscription charges to view or download any content offered (commissionjunction.com, nd). Logistics Model: In this model a company manages the logistical activities of another company. It is useful to organizations that have a strong foothold and already generated sufficient revenue. E-Business Implementation The implementation of the

Social work Essay Example | Topics and Well Written Essays - 500 words - 1

Social work - Essay Example This gives the indication that even if the objective for equal educational opportunity to everyone is greatly supported by the values held sociologists, there is need to indulge in professional commitment as well as record accomplishment. It is therefore important to face these challenges by way of equipping educational social workers with basic knowledge on African American experiences as well as equipping urban schools which are considered to have massive enrolments of black students. It is very important to ensure improvement in policy making and leadership toward educational reforms especially in urban schools. Research indicates that policymaking in regard to educational reform is a variable missing especially when focusing on school social work discussion. This therefore creates the need for school social work to take responsibility so as to initiate various contracts based on major policy decisions. Social workers need to largely participate in public policy forum related to education reform. School choices play a major role in educational reforms with main focus on schools in urban cities. Therefore, development of various school choice issues is perceived to change the function and structure of existing urban school. School choices can be through school vouchers that are considered to be an issue of equality in education whereby a state or federal educational funding is directly issued to those families that are underprivileged and would like to enroll in private schools. Educational social workers can engage in organizing various community forums to bring both school personnel and organizers together to discuss key reforms needed in the education system. Also, research plays an important role in policymaking educational reforms with main focus on black culture in the educational system. Through research, many researchers have identified critical issues within the African American

Carbon, Phosphorus, and Nitrogen Cycles Essay Example | Topics and Well Written Essays - 1000 words

Carbon, Phosphorus, and Nitrogen Cycles - Essay Example When the animals and plants die and they decompose, carbon atoms are returned back to the atmosphere, and the cycle starts again. Humans have the ability to negatively impact the carbon cycle. The most common method of doing this is by burning any type of fossil fuel, including oil, coal, and natural gas. When fossil fuels are burned, CO2 is produced and released into the atmosphere. While breathing CO2 is a normal part of the carbon cycle, when humans create more CO2 than oxygen-producing plants cannot keep up with, the cycle is thrown off (Wigley, 2000). In a similar sense, humans are also impacting the carbon cycle by cutting down plants, trees, and whole forests, further ridding ourselves of one of the aspects of the carbon cycle, as well as a vital component of oxygen production. The phosphorus cycle is a biogeochemical cycle that takes place as phosphorus moves through the lithosphere, hydrosphere, and biosphere. Phosphorus is found in rocks and begins as phosphate ions. When i t rains, the phosphate ions are removed from the rocks and are distributed into the soil and water. From there, plants absorb the phosphorus compounds from the soil, then animals take up the phosphorus atoms when they eat the plants. These phosphorus atoms are also found in water, where plants can absorb the water or animals can take a drink. When phosphorus is in the water, it gradually accumulates over time into insoluble deposits (Cole, 1999), which will be released back onto land as rocks, prompting the cycle to go again. Humans can impact the phosphorus cycle by creating too much phosphorus in the environment. When humans use fertilizers or pesticides, which are heavy in phosphorus atoms, they move the phosphorus around and it becomes excess runoff. As runoff, the phosphorus can end up in large bodies of water, which can lead to eutrophication, killing animals and plants that rely on that body of water. Also, sewage treatment facilities that use lakes and rivers as dumping grou nds create phosphate pollution that can grow algae and cyanobacteria, which destroys the oxygen in the water and reduces species diversity. The nitrogen cycle is the process in which nitrogen makes its way through nature. Nitrogen is an essential element for life; humans do not use the nitrogen, but it is still vital for our bodies. When plants and animals die, they decompose and add nitrogen into the soil. Bacteria within the soil converts the nitrogen into a form of nitrogen that plants are able to use to help themselves grow (Bothe, 2007). Animals and people eat the plants, obtaining their source of nitrogen. The animals and plants decompose and return nitrogen back into the soil. The cycle then repeats itself. Humans can impact the nitrogen cycle by producing too much nitrogen. They are capable of doing this through the pollution emitted by vehicles and chemical plants, doubling the amount of annual transfer of nitrogen into biologically-available forms (Howarth, 2006), as well as by force-feeding plants nitrogen through nitrogen-containing fertilizers. Humans can also impact the nitrogen cycle by depleting the amount of nitrogen that is made accessible. This can be done by the dumping of sewage and other types of organic matter into bodies of water, which damages oxygen levels, thus damaging nitrogen supplies. References Bothe, H. (2007). Biology of the nitrogen cycle.

Comparative Study of the Banks in Nepal

Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005) Comparative Study of the Banks in Nepal Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005)

Restaurant Management Essay example -- GCSE Business Marketing Coursew

Restaurant Management My interview is with a manager of a restaurant, the restaurant can have as many as 75 customers, and staff of 14. The restaurant served your everyday American food. The person whom I interviewed started as an assistant manager at the young age of 27. He has been a manager for the restaurant for the past 7 years. I considered him a Functional Manager because of the definition in the book, i.e. He supervises the work of employees whom engages in different specialties, such as waiters/waitress, kitchen help, accounting, and quality control. But in the same realm he is considered a General Manager because he oversees the operations, helps in solving problems, spotting problems before they occur and insuring the safety of all employees and customers. He decided to become a manager because he felt that he could motivate people, and help them realize their potential. He decided to become a restaurant manager because he enjoyed being around food and that type of fast pace environment. When interviewing this person it became very evident that he is an effective manger because he possesses many key managerial skills. He is technically efficient because, he had the ability to prepare a budget, lay out a production schedule i.e. food preparations, menu for the day's events, and was able to use a computer. He definitely had to have Interpersonal Skill in order to work effectively as a team member. He stated the best approach for managing this type of business was the behavioral approach because you had to understand the psychological makeup of many different types of people, you have to manage all different type of people within your staff and the public. He feels that cultural diversity in this type of business is a must because you have to respect each and every person that may come into your establishment. Cultural diversity is very important when it comes to hiring people who may have to be off from work on a special day because of religious reasons that is not normally celebrated by all. He gives an example of the time when he literally stumble over two guest of the restaurant who were conducting evening prayer in an isolated corner of the restaurant. They were praying on rugs. As soon as he saw the prayer rugs he realize that they were conducted evening prayer. An additional example is when an employee would b... ...g possibilities is the aspect of the business called the "demanding public"? The guests that come through the lobby of any restaurant demand a highly trained staff and a superior product no matter what extenuating circumstances exist "back in the kitchen". Orchestrating each and every element of the restaurant management so that it appears as if it is an effortless, smooth operation is a commanding, daily challenge. I personally could not be a manger for any fast pace business that required a lot of my attention and/or overseeing every aspect of the operation. I would come unglued. There are too many different personality that you have to deal with. The job itself is demanding on your body and mind. While in the Navy I worked as an x-ray technician in the ER This was very fast pace and demanding for me, I was able to do my job, but when I was being pushed to do something I felt as if I was coming apart at times. My demeanor would change, and the patient and the people that I was working with could feel it. This was effecting the patients and the staff, so after 15 years of being a x-ray technician, I decided that this was something that I could not do for the rest of my life.

Violence in Television Creates Aggression in Children

We all love action packed, horrifying, fighting type of movies like Drive, The Dark Knight, Kindergarten Cop, Star Wars or Who Framed Roger Rabbit. These movies don’t seem very harmful to us and may seem more funny then violent, but how children perceive these films is very different from how an adult may perceive it. How do children view these movies? And how do they absorb the information in front of them?. Violence in the media creates aggression in everyone but it has a major impact on children. Parenting and environmental factors also have in effect.Society and media has made us believe that violence is acceptable in films but when it happens in real life, many don’t seem accepting. People don’t seem to realize in order to suppress violence in life you have to begin with not displaying violence as if it was socially acceptable. Many factors play into childhood aggression; family, environment or mass media. Many parents sit their children in front of a televi sion for hours just to keep them occupied, but they are not aware of the damage they are doing to their kids.Movies like Who Framed Roger Rabbit may seem like a harmless movie to us but it portrays violence with guns, arguing and even distorted information of how to handle stressful situations. Movies or cartoons like this, show children you have to resort to violence to resolve certain situations. Other cartoons like Bugs Bunny, who cross dress and flirt to bring his hunter into a trap, are highly inappropriate. Young children are very manipulative and tend to reenact or repeat things they see or hear.It may be adorable when your kid is kicking and fighting around like Batman but in their mind they see fighting and aggression as a resolution. As they get older aggression and violence seems like a normal part of life and acceptable. They become desensitized with the more violence they are exposed to and usually want to watch something with more action and violence, hence become more and more absorbed in to aggression. (Huesmann & Miller,1994;) This aggression seems to stand out more on which family class they stand in.Children in lower class families tend to watch more TV, and have lower IQ’s because they are not interacting with others, reading, or using any kind of thought process. Many factors play into why children of lower class families watch more television (Huesmann, 1998). In these days many families find themselves working and not spending as much time at home, leaving the child to watch a lot of television, and if they are not around, there’s no assuring what the child is watching. Lower class families tend to be more stressed and that sometimes reflects on the children; creating anxiety and aggression (Tremblay,2000).Not having money to enjoy other activities, also causes more children to be inactive, and living in dangerous neighborhoods cause them to stay inside more. Television is America’s favorite pass time and people beli eve watching television is a good way to pass time or bond with each other but it does the opposite. There is no interaction with family members or peers and most adults don’t want to sit around watching kid shows, so children watch what their parents want to watch and usually it is inappropriate.Telling your child to cover their eyes or ears during a scene really doesn’t improve much. Some families neglect their children, give them harsh punishments or sometimes don’t discipline them at all and that also plays a role. Many studies have shown, the more a child is exposed to violence, the more often a child will respond with aggression or violence (Andison, F. S. 1977). Andison from the American Psychological Association, also discovered continue exposure to violence can lead to antisocialism, violence, drugs and criminality.Aggressive children prefer violence on television, prefer violent character and see it as part of life more than less aggressive children. S ome children won’t show signs of aggression until they are older. Consistently watching violent or inappropriate programs can affect anybody at any age or gender. Extensive researched from the American Psychological Association, also revealed aggressive behavior is more in males who tend to watch more television ( Huesmann, L. R. , Eron, L. D. , Berkowitz, L. , & Chaffee, S. (1991). Males are also raised more aggressively.Many parents believe they have to be hard on boys to make them tougher, but in actuality that can damage a child or create anger or hatred. Many children who grow up with constant aggression or violence usually don’t turn out to be the American dream person. Creators seem to forget their audience is young children and they side track to create more ratings instead of keeping it appropriate for children of a certain age. Not every person would agree violent television or inappropriate programs are the causes of aggression in children.Taking into consid eration how the child was raised, and the environment they grow up in, can have a large effect on many children. Not all television is bad, but the problem these days is that parents don’t monitor what their children watch. There are many reasons television can be a good thing for a child. If parents gave healthy viewing habits, less viewing time and watched what was on the screen for their kids, television can be very educational. Learning shows like blues clues give children thinking practice by causing them to solve riddles and find clues.Channels like the discovery channel can help children discover about the world around them and in turn learning and using thought. Television has been a revolutionary change for the last few generations. It has changed our way of life for the better and for the worse. I personally believe that before television families were closer, and violence wasn’t as popular on shows, and people were healthier, because there were more activiti es to enjoy, then just sitting at home doing nothing. These days the violence and uneducated shows on television has sadly affected even our younger viewer.Children don’t need to know about depression, hell or anger like the cartoon, Billy and Mandy display. Cartoons like this show children, it’s acceptable to be furious and angry and act aggressively to your siblings. If parents really began to care about their children, they would monitor and lower their television time. No child should have to sit 5 hours or longer in front of a television with no supervision, when they could be interacting and learning with family and peers. Violence in television also has to be decreased in adult watching as well. It has become such a large part in our society.Children shouldn’t have to grow up thinking fighting, cursing, and aggressive behavior towards others is acceptable, and it’s up to the parents to make a change. Sources * Longitudinal Relations Between Childre n’s Exposure to TV Violence and Their Aggressive and Violent Behavior in Young Adulthood: 1977–1992 Psychology Copyright 2003 by the American Psychological Association, Inc. 2003, Vol. 39, No. 2, 201–221 * Kidshealth. rg; How TV effects your child by   Steven Dowshen, MD http://kidshealth. org/parent/positive/family/tv_affects_child. html * Is Television Advertising Good for Children? Areas of Concern and Policy Implications Vol 20 No 1 (2001) http://www. sfu. ca/media-lab/archive/2007/426/Resources/Readings/readings%20kidcult/canadianadpolicy. pdf * Desensitization of children to television violence. Cline, Victor B. ;Croft, Roger G. ;Courrier, Steven Journal of Personality and Social Psychology, Vol 27(3), Sep 1973, 360-365

Social Class and Inequality

Social Class and Inequality Introduction There are several attitudes that the middle class and the rich have towards the poor. These attitudes stem from the belief that the world is a just place and people get what they deserve. If one works hard enough and perseveres he or she will be rich. However, the poor person is in that state because of poor decisions such as immorality, crime and alcoholism, lack of ambition and perseverance.Advertising We will write a custom essay sample on Social Class and Inequality specifically for you for only $16.05 $11/page Learn More These negative attitudes have caused the middle class and the rich to distance themselves from the poor. The stereotyping of the poor is the genesis of class discrimination. The poor have been excluded as the rest of the nation goes on with their lives. In this paper, I analyze three articles on social class and inequality to find out whether the authors’ views agree with mine on the negative attitudes towards the po or by the middle class and the rich and the way they have distanced themselves from the poor. The war against the poor Herbert Hans, in his article the war against the poor instead of programs to end poverty is arguing that government officials are not addressing poverty but instead making life difficult for the poor. Welfare expenses have always been small however the budget is becoming more and more restrictive. The poor are being accused of enjoying welfare instead of looking for a job and making sure they remain childless throughout their adolescence. The middle class and the rich feel they are working so hard and the poor are not. These poor people are lumped together with the criminals and accused of making the streets unsafe. The poor have become an excuse or scapegoat for the problems in society. Instead of admitting the decline in morality, the poor are accused of being the only ones with unmarried lovers. Once they get their life in order then they can receive welfare. The y are being forced to live up to moral expectations that the working class and the rich speak but do not practice (Hans, 2007, pg 506). Clearly class bigotry needs to be addressed. The poor have moral failings that are highly noticeable than the middle class but it does not mean it is at a higher proportion. The rich and middle class have access to counseling facilities to tell them their moral failings is as a result of prior abuse or disease.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More The poor do not want to marry the fathers of their babies as they are jobless. There is actually scarcity of work; it is not true that the poor do not want to work. The government should address poverty through actively engaging in job creation initiatives and ensuring the actual crime of the poor does not fall below a certain percentage. Critique The author’s views on class discrimination agree with my views. He concurs that judging the poor harshly for their moral failings and the ability to secure a job is wrong. The middle class and the rich also have moral failings and the middle class has also been experiencing unemployment as jobs are scarce. Crime and mental illnesses should be viewed as some of the effects of poverty. It is not that the poor and mostly the Blacks have higher criminal tendencies. The middle class and the rich to stop discriminating against the poor and having someone to blame. The author has also highlighted other concerns that I agree with. Hans says that the government, politicians and public are making life tougher for the poor. I agree with Hans that the focus should be on creation of jobs for the poor. If the country does not stop attacking the poor, the morale, quality of life and economic competitiveness will only go down. Middle of the class The article Middle of the class published in the Economists is an argumentative piece of writin g that questions the sustainability of the American Dream. America has always been defined as a country where anyone can become rich or wealthy if they just work hard. Shows like American Idol prove this. The country has had presidents from humble backgrounds like Benjamin Franklin who was the 15th child of a candle maker. However the equality of opportunity in America for all its citizens is rapidly diminishing. The author gives the statistical figures on how the rich have become richer while the poor have become even poorer widening the income gap even more. Secondly social mobility has gone down. A lower and lower percentage of people are able to change the social class they are in through increase in earnings over a period of ten years.Advertising We will write a custom essay sample on Social Class and Inequality specifically for you for only $16.05 $11/page Learn More There have also been changes in the economy with a shift towards technical skills req uiring workers who have a university degree. This has caused a high increase of the income gap between college and high school graduates. It has become hard to climb the corporate ladder or change jobs if one does not have a university degree. The author suggests that the American society is becoming an educational stratified society in other words a meritocracy. The rise in university education is also providing a hurdle for middle class families to attend elite universities. The representation of the rich in these elite universities has increased more than the representation of the poor. The mean income of the families that have enrolled their children in Harvard is $150,000(The Economist, 2007, pg 528). During the period 2001-2004, States found themselves facing a budget squeeze. They responded by increasing the fees of state colleges where the middle class take their children to learn. This proves that the American system is enforcing more income inequalities through educational differences. The rich children are more likely to get a degree than a child from the bottom quarter income level. There is also a worrying trend in the society that further aggravates class and educational stratification. The chances of an individual getting access to a good education, a good job and good prospects in life is determined by the family the person is born into. College graduates tend to marry college graduates. Therefore in the graduates home the returns of the degree is double and their children benefit even more with opportunities to attend better schools. There is therefore great trouble in being poor. If in the American society to be socially mobile you must have a great education, a job and married with children then the rich start off with higher advantages. There needs to be policy changes where the method by which schools are financed is changed and giving more federal help to poorer colleges. This will only happen when the American politicians and the public recognize there is a problem.Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Critique The author, like Hans concurs with my argument that the poor are being judged too harshly in society. The reason the poor are not able to support themselves is not that they are lazy or lack ambition. Rather there is a limitation on the equality of opportunity when it comes to the middle class and the poor in the corporate world. The country is being affected by globalization and technology changes; therefore the requirement of a degree is becoming mandatory. If what it takes to succeed in the American corporate society is the attainment of a degree then the government should ensure that children from all social backgrounds have access to this type of education. Making education costs high does not help the poor and middle class at all. It only goes to aggravate the existent inequalities between the rich and the poor. As the author has given statistics, in the last few years the rich have been becoming richer and the poor becoming poorer. The government needs to step in and address the situation. When Shelter Feels Like a Prison The two articles narrated on the stereotypes held by society towards the poor while the article in the Economist discusses the widening gap between the rich and the poor. Both papers focus on the poor. The third article written by Charmion Brown tells of the author’s experiences growing up in a homeless shelter. The real life story further reinforces my argument on the distancing of the poor by society. In light of her first hand experiences in the place she feels she can only compare it a prison. First of all, the place is cramped with four bunk beds fitted in each tiny room (Browne, 2007, pg 531). There is absolutely no privacy. One has to take care of their things or they will be stolen. There is a queue for food for the homeless. The author learnt that if you do not make the line two hours before the kitchen is open, one would miss food. There are no curtains in the bathrooms yet the facility is being shared by more than one hundred people. The author felt like the place was a prison. Critique The author’s experiences in the shelter confirm my views on the abandonment of the poor and homeless in the shelters. The author narrates how the social workers are rare and have no time for them. It is a prison. The government and public needs to stop abandoning the shelters. The living conditions needs to be improved. In my argument I had put forward the assumptions society has concerning the poor people. They are not successful because they are lazy. The author cautions society and informs them that there were people from broken homes in the shelter due to drug abuse, AIDS and early pregnancy and not because they are lazy. The poor also lack knowledge on how to improve their lives. Conclusion The three articles have gone further to reinforce my argument on the existence of negative attitudes and stereotypes for the poor in society. Hans goes further to explain that it is because the poor have b ecome a scapegoat to make other members in the society better. In my argument I had put forward the way society views the world in black and white. The hardworking succeed the poor are the lazy ones. The article in the economist supports my argument and goes ahead to tell society that actually there is a limitation on equality of opportunity in the country. One may desire a job but he cannot get that job. In my argument I also said that the society distances itself from the poor. The article, When Shelter feels like a Prison clearly shows the abandonment of the poor by society. Browne, Charmion. â€Å"When Shelter Feels Like a Prison† Writing in the Disciplines: A Reader for Writers. Ed. Mary Kennedy. 6th Ed. New Jersey: Prentice Hall. 2007. Print. Hans, Herbert. â€Å"The war against the poor instead of programs to end poverty† Writing in the Disciplines: A Reader for Writers. Ed. Mary Kennedy. 6th Ed. New Jersey: Prentice Hall. 2007. Print. The Economist. â€Å"The Middle Class† Writing in the Disciplines: A Reader for Writers. Ed. Mary Kennedy. 6th Ed. New Jersey: Prentice Hall. 2007. Print.

The Story of Nat Turners Rebellion

The Story of Nat Turners Rebellion Nat Turner’s Rebellion was an intensely violent episode which broke out in August 1831 when slaves in southeastern Virginia rose up against white residents of the area. During a two-day rampage, more than 50 whites were killed, mostly by being stabbed or hacked to death. The leader of the slave uprising, Nat Turner, was an unusually charismatic character. Though born a slave, he had learned to read. And he was reputed to possess knowledge of scientific subjects. He was also said to experience religious visions, and would preach religion to his fellow slaves. While Nat Turner was able to draw followers to his cause, and organize them to commit murder, his ultimate purpose remains elusive. It was widely assumed that Turner and his followers, numbering about 60 slaves from local farms, intended to flee into a swampy area and essentially live outside society. Yet they didnt seem to make any serious effort to leave the area.   It is possible Turner believed he could invade the local county seat, seize weapons, and make a stand. But the odds of surviving a counterattack from armed citizens, local militia, and even federal troops, would have been remote. Many of the participants in the rebellion, including Turner, were captured and hanged. The bloody uprising against the established order failed. Yet Nat Turner’s Rebellion lived on in popular memory. The slave insurrection in Virginia in 1831 left a long and bitter legacy. The violence unleashed was so shocking that severe measures were put in place to make it more difficult for slaves to learn to read and to travel beyond their homes. And the slave uprising led by Turner would influence attitudes about slavery for decades. Anti-slavery activists, including William Lloyd Garrison and others in the abolitionist movement, saw the actions of Turner and his band as a heroic effort to break the chains of slavery. Pro-slavery Americans, startled and deeply alarmed by the sudden outbreak of violence, began to accuse the small but vocal abolitionist movement of actively motivating slaves to revolt. For years, any action taken by the abolitionist movement, such as the pamphlet campaign of 1835, would be interpreted as an attempt to inspire those in bondage to follow the example of Nat Turner. Life of Nat Turner Nat Turner was born a slave on October 2, 1800, in Southampton County, in southeastern Virginia. As a child he exhibited unusual intelligence, quickly learning to read. He later claimed he could not recall learning to read; he just set about to do it and essentially acquired reading skills spontaneously. Growing up, Turner became obsessed with reading the Bible, and became a self-taught preacher in a slave community. He also claimed to experience religious visions. As a young man, Turner escaped from an overseer and fled into the woods. He remained at large for a month, but then voluntarily returned. He related the experience in his confession, which was published following his execution: About this time I was placed under an overseer, from whom I  ran away - and after remaining in the woods thirty days, I returned, to the astonishment of the negroes on the plantation, who thought I had made my escape to some other part of the country, as my father had done before.But the reason of my return was, that the Spirit appeared to me and said I had my wishes directed to the things of this world, and not to the kingdom of Heaven, and that I should return to the service of my earthly master - For he who knoweth his Masters will,  and doeth it not, shall be beaten with many stripes, and thus, have I chastened you. And the negroes found fault, and  murmured against me, saying that if they had my sense they would not serve any master in the world.And about this time I had a vision - and I saw white spirits and black spirits engaged in battle, and the sun was darkened - the thunder rolled in the Heavens, and blood flowed in streams - and I heard a voice saying, Such is y our luck, such you are called to see, and let it come rough or smooth, you must surely bear it.I now withdrew myself as much as my situation would permit, from the intercourse of my fellow servants, for the avowed purpose of serving the Spirit more fullyand it appeared to me, and reminded me of the things it had already shown me, and that it would then reveal to me the knowledge of the elements, the revolution of the planets, the operation of tides, and changes of the seasons.After this revelation in the year 1825, and the knowledge of the elements being made known to me, I sought more than ever to obtain true holiness before the great day of judgment should appear, and then I began to receive the true knowledge of faith. Turner also related that he began to receive other visions. One day, working in the fields, he saw drops of blood on ears of corn. Another day he claimed to have seem images of men, written in blood, on leaves of trees. He interpreted the signs to mean a great day of judgment was at hand. In early 1831 a solar eclipse was interpreted by Turner as a sign that he should act. With his experience of  preaching to other slaves, and he was able to organize a small band to follow him.   The Rebellion In Virginia On a Sunday afternoon, August 21, 1831, a group of four slaves gathered in the woods for a barbecue. As they cooked a pig, Turner joined them, and the group apparently formulated the final plan to attack nearby white landowners that night. In the early morning hours of August 22, 1831, the group attacked the family of the man who owned Turner. By stealthily entering the house, Turner and his men surprised the family in their beds, killing them by slashing them to death with knives and axes. After leaving the familys house, Turners accomplices realized they had left a baby sleeping in a crib. They returned to the house and killed the infant. The brutality and efficiency of the killings would be repeated throughout the day. And as more slaves joined Turner and the original band, the violence quickly escalated. In various small groups, slaves armed with knives and axes would ride up to a house, surprising the residents, and quickly murder them. Within about 48 hours more than 50 white residents of Southampton County were murdered. Word of the outrages spread quickly. At least one local farmer armed his slaves, and they helped fight off a band of Turners disciples. And at least one poor white family, who owned no slaves, were spared by Turner, who told his men to ride past their house and leave them alone. As the groups of rebels struck farmsteads they tended to collect more weapons. Within a day the improvised slave army had obtained firearms and gunpowder. It has been assumed that Turner and his followers may  have intended to march on the county seat of Jerusalem, Virginia, and seize weapons stored there. But a group of armed white citizens managed to find and attack a group of Turners followers before that could happen. A number of rebellious slaves were killed and wounded in that attack, and the rest scattered into the countryside. Nat Turner managed to escape and evade detection for a month. But he was eventually chased down and surrendered. He was imprisoned, put on trial, and hanged. Impact of Nat Turners Rebellion The insurrection in Virginia was reported in a Virginia newspaper, the Richmond Enquirer, on August 26, 1831. The initial reports said local families had been killed, and considerable military force might be required to subdue the disturbers. The article in the Richmond Enquirer mentioned that militia companies were riding to Southampton County, delivering supplies of arms and ammunition. The newspaper, in the same week as the rebellion had occurred, was calling out for vengeance: But that these wretches will rue the day on which they broke loose upon the neighboring population is most certain. A terrible retribution will fall upon their heads. Dearly will they pay for their madness and misdeeds. In the following weeks, newspapers along the East Coast carried news of what was generally termed an insurrection. Even in an era before the penny press and the telegraph, when news still traveled by letter on ship or horseback, accounts from Virginia were published widely. After Turner was captured and jailed, he provided a confession in a series of interviews. A book of his confession was published, and it remains the primary account of his life and deeds during the uprising. As fascinating as Nat Turners confession is, it should probably be considered with some skepticism. It was published, of course, by a white man who was not sympathetic to Turner or to the cause of the enslaved. So its presentation of Turner as perhaps delusional may have been an effort to portray his cause as utterly misguided. Legacy of Nat Turner The abolitionist movement often invoked Nat Turner as a heroic figure who rose up to fight against oppression. Harriet Beecher Stowe, the author of Uncle Toms Cabin, included a portion of Turners confession in the appendix of one of her novels. In 1861, the abolitionist author Thomas Wentworth Higginson, wrote an account of Nat Turners Rebellion for the Atlantic Monthly. His account placed the story in historical context just as the Civil War was beginning. Higginson was not merely an author, but had been an associate of John Brown, to the extent that he was identified as one of the Secret Six who helped finance Browns 1859 raid on a federal armory. John Browns ultimate goal when he launched his raid on Harpers Ferry was to inspire a slave rebellion and succeed where Nat Turners Rebellion, and an earlier slave rebellion planned by Denmark Vesey, had failed.