Income elasticity of demand Essay Example for Free

Income elasticity of bring EssayWorld trade for straw is greater than for all other(a) crops combined and is cultivated in 128 counties. A farming company specializing in wheat and barley production (Silo Pty Ltd), one of many an(prenominal) producers in the international market, is greatly affected by storms in the U.S and South America. These storms have reduced the global wheat yield by 50 per cent. pale yellow continues to be the most important food grain resource as it is used in a cock-a-hoop majority of foods around the world. Its production leads other crops such as rice, lemon tree and potatoes.Despite wheats great importance in the food industry, it would still be regarded as being equipment casualty elastic and have a positive income elasticity, as in that location are many competitive suppliers around the world, which could possibly lead to fluctuations in hurts and prevent large shortages. Price elasticity of demand arises due to the responsiveness of the q uantity demanded of a good to change its price, when all other influences on buyers plans stay the same. Income elasticity of demand is the responsiveness of demand due to a change in income. Factors that generally affect the supplying of goods or services include, the price of factors of production, the prices of related goods produced, expected early prices, the number of suppliers, technology and the state of nature.Demand is also effected by such factors as, the prices of related goods, expected future prices, income, expected future income and credit, population and preferences. If ever there were a shortage of wheat due to bad weather or storms, such that has happened to Silo Pty Ltd, other crops such as barley or maize could be used as an alternative resource, thus the supply would decrease and eventually the demand would decrease slightly as well as there are alternative resources at possibly cheaper prices. This would result in wheat being considered as a normal good in western purchase order as for which demand increases as income increases.Graph 1 shows the situation before the storms hit and the effects after the storms. The demand curve is D and the original supply curve is labelled S0. After the storms hit, the supply curve shifted left to S1. This represents the supply decreasing, further increasing the price. Graph 2 shows the effects of the expected future price rise. Demand increases, shifting from D0 to D1, supply decreases shifting the supply curve from S1 to S2.

The North Face Essay Example for Free

The atomic number 7 military position EssayThe majority of the attach tos carrefours ar sold in premium sporting goods retailers, and specialty pack, mountaineering, and skiing retailers. The northwestern count provides gear for professional and connoisseur athletes and enthusiasts using high-quality, technical outerwear. This company similarly sponsors major events to maintain and even increase its public profile. In 2010, The northern seem sponsored the Ski Challenge, the Ultra tip du Mont Blanc in France and the Lava redo Ultra Trail in the Italian Dolomite Mountains (Kennedy, 2012).The marriage boldness has very stiff competition from well known companies such as Columbia sportswear, and Patagonia. However they boast fascinating state of the art technology to distance themselves from their competitors. Despite The pairing exhibit filing for bankruptcy in the late(a) 90s, pro forgathers keep up move up by 37 percent the past year. This is mostly because of the popularity of the stake in Asia and its sponsorship for the Winter X-Games. It has earned a reputation as the ultimate, authentic outdoor(prenominal) denounce. Their catchword Never Stop Exploring, has become popular amongst all athletes and outdoor enthusiasts.This outdoor app bel powerhouse has a very massive and loyal fan base, and the admit for outdoor apparel is on the mug up. In northwards America, surgical procedure outdoor apparel has bristlen 19% from 2004 to 2010. This trend is supposed to continue for at least(prenominal) another five long time. As The North Face has been creating products with slap-up quality and endurance, they plan to steering toward a dark-greener supply chain and operations. Partnering with the gloomful sign sustainability criterion for textile production, pass on help separate The North Face from their main market competitors Columbia Sportswear, and Patagonia.By looking at pecuniary records, The North Face surpasses its secon d largest competitor, Columbia Sportswear, proving that it is the best in the labor. The North Face is named after the coldest most unforgiving side of a mountain, and has helped explorers reach unbelievable heights in the Himalayas. This remarkably powerful corporation is going to continue to design and provide the best for all outdoor enthusiasts, remaining on top for years to come. The North Face was chosen due to its involvement in both the sport and recreation fields. Their mission statement is Never Stop Exploring.Their vision statement as a business is Our passion is beyond setting records and achieving fame. For us, its all about changing lives, not just our lives, but in addition, the lives of those people who inspire us to acquire for extraordinary dreams (Over 40 Years of Innovation and Exploration, 2012). For more than 40 years, The North Face has been distributing an extensive line of cognitive operation apparel, equipment, and footwear. The companys purpose is to draw the boundaries of innovation so their customers can push the boundaries of exploration (Over 40 Years of Innovation and Exploration, 2012).The North Face is extremely proud to be the first selection of equipment and apparel for the worlds most all over climbers, explorers, and winter sport enthusiasts. In 1966, Douglas Tompkins and Kenneth Klopp pieceed The North Face in San Francisco North Beach neighborhood. They chose this name of their equipment retail store because the north face of a mountain in the northern hemisphere is generally the most difficult face to climb (Our Story, 2011). By 1968, The North Face was designing and manufacturing its own type of technical mountaineering apparel and equipment.By the end of the 1980s The North Face became the only supplier in the United States to offer a comprehensive collection of high-performance outerwear, skiwear, sleeping bags, packs and tents (Our Story, 2011). The North Face brand was created to give customers exactly what they need and they are concentrating on creating environmental friendly and high sustainability products. They wanted to give the customers huge satisfaction and build trust between them and the brand. By using products, which support better performance and comfort at different locations and climatic conditions, creates a unyielding-term relationship with the customers.In the past innovative product design and consistent development and institution of new products have always been North Faces greatest strengths. In 1975 North Face introduced a measuring in the outdoor equipment industry with its geodesic dome tent. This design became the standard for lightweight, high-performance tents use in high-altitude and polar expeditions (Our Story, 2011). The geodesic dome also became very popular for general backpacking and camping as well. The same year North Face also introduced another original, sleeping bags incorporating shingled construction of synthetic insulation.Like the dome t ent, these sleeping bags have become the industry standard (Our Story, 2011). An extreme skiwear line was later introduced which involved a complete line of severe cold weather clothing. By the late 1980s North Face were the only manufacturer and distributor in the United States of a comprehensive line of premium-grade, high-performance equipment and apparel used in mountaineering, skiing, and backpacking (The North Face Inc, 2009). Currently, Geoffrey D. Lurie leads The North Face team as Chief Executive Officer, and Director (Company Overview of The North Face, Inc. 2011).The North Face is owned by VF Corporation, who is lead by the team of Eric C. Wiseman and Robert K. Shearer (About VF Management Team, 2012). The VF Corporation is a leader in branded lifestyle apparel including jeans wear, outdoor products, image apparel, sportswear and modern-day apparel brands. The principal products and services offered by The North Face are men, women, and children outdoor apparel for hikin g, cold weather climates, running, rock climbing, and camping. They offer equipment such as tents, sleeping bags, back packs, and kits for rock climbing, and camping.They offer services such as events throughout the year that give their customers opportunities to wonder the outdoors while also get to know the brand. Today, The North Face offers a wide variety of products like outdoor equipment such as thermal tents, and climbing tools. They are very noteworthy on college campuses these days with their outer wear ranging from their jackets to winter hats and gloves. These products meet customers needs and wants by providing quality winter and hiking gear.The North Face touches customers emotionally by full-blooded their technological needs. Every product they make is made with the thought that each consumer is an explorer and they require a product with high quality, comfort and something they would value for the longterm (Our Story, 2011). They value their customers and stick to their company value of using high quality fabric, testing their products endlessly, and constant improvement (Our Story, 2011). The demand for The North Face products pull up stakes definitely increase in the future.Global demand for performance outdoor apparel worn by individuals taking part in sports pursuits is outpacing other sectors of the check active sportswear market, according to a new report from just-style, with growth set to soar by 22% over the next six years(Smith, 2011). In North America, performance outdoor apparel has grown 19% from 2004 to 2010. This trend is supposed to continue for at least another five years. europium is suppose to have a predicted 18% increase within the next 5 years (Smith, 2011).Outdoor apparel will be very undefeated in the developed world, but in third world countries they will hardly grow at all. In the past, outdoor retail products were seen more as a luxury rather than a necessity. Lucky for The North Face, the economy hasnt really encroachmented the company as a whole compared to the industry in general. The North Face is classified as a premium brand, thus targeting high educated individuals. New stores have continued to open, and plans to grow and expand are emphasized each day.Just like any organization, The North Face has high objectives in regards to their products and services. ane objective is to improve the brand value perception from 65% to 85% by the end of the year (2010 Sustainability Report, 2010). Based on a survey that was conducted, 65% of the respondents think that they are acquire a great value out of The North Face Products for the amount they pay. Whereas another survey shows that the brand is not too affordable. Another objective for The North Face is to increase customer loyalty from 68% to 85% by the end of 2012 (Over 40 Years of Innovation and Exploration, 2012).Based on the brand research, they found out that only 74% of The North Face customers are more likely to buy its products a increment. Finally, The North Face plans to expand the product offering of the company from 4 to 6 activities. Their newest targets include runners and bikers. After conducting a survey with their customers, The North Face found that the top activity that respondents participate in, other than hiking, are biking and running. Therefore, The North Face wants to include more gear to accommodate this new market of runners and bikers.In narrate to reach its goals, The North Face plans on taking step in order to meet its objectives. To achieve its goals, The North Face plans on creating inexpugnable awareness campaigns that emphasize the product technology and value of the products in order to decrease the perception of having prices way too high for a said product (2010 Sustainability Report, 2010). In order to increase customer loyalty The North Face Plans on develop more community outreach programs to engage customers. A simple solution is in place for the running and biking ma rket, just simply begin developing products for that target market.The use of advertisements will help The North Face keep in touch with the customers and constantly remind them of products positive values (Over 40 Years of Innovation and Exploration, 2012). Maintaining long-term relationships with happy and satisfied customers will encourage them to continue buying the products. The technology used to make The North Face products is blue sign approved fabric. The blue sign standard guarantees that along the entire production chain products only contain components and pass through processes that are harmless to people and the environment (The Board Room Eco Apparel Environmental Standard, 2012).By supporting the blue sign standard, The North Face can focus not only on creating high performing, quality products but also on assuming greater responsibility for our consumers and the environment by minimizing the ecological impact of their supply chains (Product Responsibility, 2010). In addition to working with their primary suppliers, The North Face works hard to influence additional supply chain collaborators to partner with the blue sign system in 2010. Viewing the macro-environment surrounding The North Face is very interesting. Many factors influence the production of products, sales, and innovation.Social trends include brand popularity as well as possible body image and health issues. Everyone wants to fit in with the new styles, therefore with The North Face on the rise sales will increase and become popular among customers. Since The North Face promotes healthy living, healthy lifestyles among consumers will become a huge trend with trying to stay in shape and avoiding obesity. Politically and economically, healthcare bills could determine if people would venture out and do adventurous activities with risk involved. Higher taxes and unemployment rates will pose a huge threat to The North Face due to its high prices.Currently, natural trends that are bei ng used include the use of blue sign fabric technology explained earlier and finding innovative ways to recycle and reuse resources for future products. Technological trends that are being used include partnering with the most innovative leading materials engineers. With this partnership, The North Face creates the technically advanced fabrics needed to develop clothing and equipment that meet their high standards (Our Research, Design Development Process, 2011). One great example is the partnership with W. L.Gore, who helped design PacLite, the most compressible, lightest weight GORE-TEX shell fabric available (Our Research, Design Development Process, 2011). As The North Face has been creating products with great quality and endurance, they plan to focus toward a greener supply chain and operations. At least 65 percent of the fabric it uses to conform to the blue sign sustainability standard for textile production by 2015 (Guevarra, 2011). After two years of working with major s uppliers to apply blue sign guidelines, 27 percent of the fabric used in The North Face products meets the standard (Guevarra, 2011).The further upstream we go, the more impact we have on easing the environmental impacts, Adam Mott, corporate sustainability manager for The North Face (Guevarra, 2011). With that being said, the greatest benefits result by improving the sourcing and manufacturing of prime materials that are used in its products. The North face customers are usually wiz middle-middle or upper-middle class people, whose main occupation is teaching or having part time summer jobs. They are college or professional customers between 25 to 45 years old (Demographics of The North Face, 2012).Their income ranges between $40,000 to $60,000 dollars. They are consistent users with heavy frequency of purchase and conduct searches on the Internet (Demographics of The North Face, 2012). Surveys and studies show The North Face customers are interested in running in marathons and al so environmentally aware. They enjoy being independent and typically purchase high performance products (Demographics of The North Face, 2012). The company targets prospect customers who are trying to explore new locations for outdoor activities like running.The customers are generally people who are trying to fit in the new environment or society. The North Face has very stiff competition from three major well known companies such as Patagonia, Columbia Sportswear, and Nike. Patagonia and Columbia Sportswear are in the same category of outdoor lifestyle brands, and Nike on the other hand targets a much large variety of customers. Patagonias mission statement states Build the best product, do no unnecessary harm, use business to inspire and implement solutions to the environmental crisis (Our creator For Being, 2012).Founded by the mountaineer Yvon Chouinard, Patagonia, like The North Face, is a company that is deeply committed to preserving the earth and creating sustainable prod ucts. In 1972, Yvon Chouinard developed the idea of going green mountain climbing after finding out that the climbing gear his company manufactured damaged cliffs (Beginnings and Blacksmithery, 2012). Chouinard later developed aluminum chocks to replace the trade name climbing gear. The Columbia Sportswear Company is positioned directly against The North Face and Patagonia.While The North Face and Patagonia target the extreme outdoor adventurers, Columbia Sportswear appeals more to the casual outdoor enthusiast. They believe that the outdoors isnt all about remote expeditions or climbing the worlds highest mountains. Anyone can enjoy the outdoors (Columbias History, 2012). They are definitely aiming to sell to a much larger crowd of customers compared to Patagonia and The North Face. Columbia Sportswear is sold in over 100 countries worldwide. They use state of the art technology known as Omni technology, which focuses primarily on comfort focuses on comfort (Omni-Technology, 2012) .Core technologies serve the avocation functions thermal comfort, water repellent, lightweight, advanced traction, sun protection, advanced evaporation, advanced cooling, waterproof and breathable (Omni technology, 2012). Nike is the worlds leading supplier of athletic shoes and apparel. Each product line they offer is branded such as, Nike Golf, Nike Pro, Air Jordan, etc. Nikes selling and branding strategy is a key component to their huge success. Nikes logo, The Swoosh, is one of the most recognizable logos in the entire world.They target the mainstream athletic crowd with their apparel, commercials and sponsorships. Competitively, all four companies have incredibly strong cultures and each has their own sets of strengths and weaknesses. Out of these sport and recreation apparel powerhouses, Patagonia, is the most serious threat to The North Face. However The North Face has some whimsical features that gives it an advantage over Patagonia and the rest of its competition. The N orth Face is a very trendy brand, and very popular with college students.It is available in thousands of retails stores for easy access, creating more of a mass market appeal. trendy brand of the two, hugely popular among college students and widely available nationwide in thousands of retail locations. Thus, The North Face has more mass-market appeal. On the other hand, Patagonia only has a handful of retail locations in areas that arent as populated. This happens to be part of their marketing strategy. The North Faces marketing strategy is to focus on the athlete and their performance in The North Face gear.Patagonia focuses more on the clothing it sells, not the model. They place an emphasis on the fabric technology that they use in their marketing and only display their clothing on their website and catalogs. This is an area where both of these companies could improve on. North Face as a whole company is financially healthy. This is located through the financial ratios provided by the annual report of V. F. Corporation for the year 2012. The North Face is a subsidiary to the VF Corporation and is represented as the stock symbol VFC on the New York Stock Exchange.In order to determine The North Faces health, profitability ratios and its subcomponents were analyzed. Profitability ratios show the businesss ability to generate revenue as compared to its expenses and other relevant costs incurred during a specific menstruation of time (Profitability Ratios, 2012). These ratios include profit gross profit, return on assets, detonator structure, and return on investment. The North Faces financial ratio for profit mete is 47. 9%. This was determined by taking the net income, dividing it by the corporations revenue, then multiplying the quotient by one hundred.The return on assets is 9. 5% which is determined by taking the companys net income and dividing it by their total assets. The capital structure of the North Face is 24. 3%. To calculate the capital stru cture, you must(prenominal) take their long term debt, and divide it by shareholders equity plus their long term debt. Calculating the return on investment, you must take the gain from interest subtract it by the cost of investment, then divide by the cost of investment. The North Faces return on investment is 14%. The menses accounts payable is $868,870,000, current ratio is 1. 91%, the working capital is 1. 2B, and their long term debt is 1. 83B (VF Corporation, 2012).The North Face company is healthy because their working capital is only 300 million less than their long term debt and they have a positive $868,870,000. 00 accounts payable balance. Financial records were not available for Patagonia, The North Faces top competitor. Columbia Sportswear, The North Faces second largest competitor, financial ratios were looked at instead. Columbia Sportswear as a company is also financially healthy. This is determined through the financial ratios provided by the annual report of COLM for the year 2012.Specifically we focused on the profitability ratios and its subtopics to determine the health of the company. Their financial ratio for the profit margin is 46%, ratio for return on assets is 7. 5, capital structure -5%, return on investment is 9. 6%, accounts payable is $148,700,000, and their current ratio is 3. 9% (Columbia Sportswear Company COLM, 2012). The North Face exceeds Columbia in all four categories. The North Faces profit margin is 47. 9% compared to Columbias 46%. In return of assets, The North Face comes out on top with 9. 50% opposed to Columbias 7. 5%. The North Faces capital spending is at 24. 0%, way above Columbias -0. 05%. In the fourth and final exam category, return on investment, The North Face closes it out with a 14% to Columbias 9. 60%.These ratios are so different because The North Face is more successful and sells more inventory than Columbia. They also get a much larger market draw. The North Faces product and clothing line is compon ent the company meet its objectives. This is because they are very successful and have nearly a 50% profit margin. In conclusion, The North Face, part of the Vanity middling Corporation, was founded in 1966 later opening its first retail store in 1968.The company, located in San Leandro, California, brings the most technically advanced products in the market to accomplished mountaineers, climbers, skiers and explorers. The majority of the companys products are sold in premium sporting goods retailers, and specialty backpacking, mountaineering, and skiing retailers. The North Face provides gear for professional and amateur athletes and enthusiasts using high-quality, technical outerwear. Their slogan Never Stop Exploring, has become popular amongst all athletes and outdoor enthusiasts.This outdoor apparel powerhouse has a very large and loyal fan base, and the demand for outdoor apparel is on the rise. As stated earlier, in North America, performance outdoor apparel has grown 19% fr om 2004 to 2010. This trend is supposed to continue for at least another five years. As The North Face has been creating products with great quality and endurance, they plan to focus toward a greener supply chain and operations. Partnering with the blue sign sustainability standard for textile production, will help separate The North Face from their main market competitors Columbia Sportswear, and Patagonia.By looking at financial records, The North Face surpasses its second largest competitor, Columbia Sportswear, proving that it is the best in the industry. The North Face is named after the coldest most unforgiving side of a mountain, and has helped explorers reach unbelievable heights in the Himalayas. This remarkably powerful corporation is going to continue to design and provide the best for all outdoor enthusiasts, remaining on top for years to come.

Mind soul Essay Example for Free

Mind soul Essay1. How atomic number 18 Platos and Descartes views of the soul/ self similar? both(prenominal) Plato and Descartes believe that the soul/self is best (or only) to think and learn separate from the body and its faculties. According to Plato, the soul reasons best without bodily senses. Plato claims that sight, hearing, pain, and pleasure are a distraction to the soul in its search for reality, and that true knowledge can only be achieved with pure thought alone. The body confuses the soul and prevents it from acquiring fair play and wisdom whenever it is associated with it. Descartes very similarly believes that the body and its faculties, namely imagination and again the senses, are distinguished from the self as modes from a thing. According to Descartes, the essence of the self consists entirely on being a thinking thing. The body can perceive pain and pleasure, but nothing beyond that, it is up to the intellect to precede its own inquiry into things exte rnal to us. Thus, much like Plato, Descartes claims that it is this thinking essence, and not the body, and though alone, and not perception, that is the key to true knowledge.2. How are Humes and Nietzsches views of the self similar, and how are they incompatible? Both Hume and Nietzsche believe that the self is a summation of ones actions and perceptions. According to Hume, the self is a collection of perceptions in perpetual flux and movement. There is no informality or identity in the self, but only an infinite system of perceptions in an infinite variety of postures and situations. These perceptions are then linked by the dealings of cause and effect, which mutu every last(predicate)y influence, modify, alter, create, and destroy each other.Nietzsche similarly believes that the self is merely a relation of human desires to each other. According to Nietzsche, desires and pleasures or human drives are the commander. This human drive controls everything else, and the strong est drive is a tyrant, even reason and conscience bow down. Both philosophers ultimately agree that there is no pure forms or simplicity of the self, but that it is rather driven by actions and perceptions, as well as desires and pleasures.Humes main idea of the self is that there is no self that is shelter over time, rather the self is merely a series of transient feelings, sensations, and impressions of oneself at any given moment. That is, there is no unified self that ties all perceptions together. Nietzsches main idea of the self is distinguishable as it reaches a little into the very motivation for the self and life. Nietzsche argues that the self is composed of drives, but unlike Hume, goes march on to say that these drives almost vie with each other to be the ultimate purpose of existence and the master of all other drives. Nietzsche calls this the depart to power and illustrates the hitch accordingly ever living body within which individuals treat each other as equals does to another body what the individuals within refrain from doing to each other. The will to power is to grow, spread, seize, and become predominant it not only drives the self but also the reality of the cosmos. 3. How is Platos view of the valet de chambres creation similar to the ordinary spiritual view, and how is it different?Similar to the ordinary religious view of the creation of the orbit, Plato believes that the universe was created by a maker or a god, who not only made the world to be as excellent and supreme as nature would allow it, but who also endowed it with soul and intelligence. Platos views also coincide with the ordinary religious view when he claims that the universe is physical and changing, that god is good and fair, and that there is order rather than disorder.Plato however differs from the ordinary religious view of the creation of the world when he claims that there is a second type of universe other than the physical eternal universe, that never ch anges. According to Plato, god uses this eternal model of the universe and the forms (of beauty, good, etc. ) as a template to create the existing world. The universe resembles an ideal living thing of which all other ideal living things are a part of the ideal living thing comprehends in itself all other intelligible ideal living things.

Greece: Economic and Public Financial Situation

Greece Economic and every twenty-four hours Financial SituationGreece The Economic and Public Financial SituationS. Henry J. Girigori L. DavelaarICUC MBA XISUMMARYGreece is way out through a very tense season related to their economy for a while now. They are facing ultimatums to correct their pecuniary situation, taking measurements if they command to continue being dispel of the European Union.Greeces economy rely majorly on service delivery areas, under which Tourism is one of the biggest income gene judge post (about 73% of the GDP). In 1980, Greece joined the European Union and in 2002 they officially adopted the Euro as a generic pecuniary agreement between the EuroZone. Greece, had contrasting benefits since in that respect merging with the EU. Their input per year account for about 2.35% of the GDP of Greece. Additionally, Greece received on a structural basis an EU funding of 20 billion from 1994 to 1999 and of 24 billion from 2000 to 2013. These funds has been use d to lower the countrys deficit and to further development the country.Greece is shortly progressing slowly in defeating the huge problems they were confronting with this painful recession. Even though this recession was and still is a difficult power point for Greece, we must accredit for the fact that they managed to strike some quantifiable results with the challenges they confronted with the adjustments. As Greece and the different debtor countries such as Spain, Italy, Ireland and Portugal are heading towards default, the whole continent of Europe is in danger.Even though the economy of these countries are relatively abject in comparison with some(prenominal) other members of the euro zone, they form a huge threat due to the huge interconnection of the European financial outline because of the euro.As mentioned before, Euro is the common currency for the entire European Union, and this group known as the Eurozone is affected due to all-encompassing range of currency f luctuations and the Drastic fall in the value of Euro.The countries, forming part of the Eurozone, who agree to stomach Greece of preventing them from getting to default, were leadly and immediate extend toed by the financial crisis in Greece. As per virtually articles describe that the most viable option right now is to non exit the Eurozone and come to a deal in order to come out of the cypher deficit they are in.Without a centralized fiscal kernel countries go away continue to attract deficits, accumulate depths, degrade the value of euro and threaten stableness of Europe.Table of content (Jump to)SUMMARYINTRODUCTIONCHAPTER 1 Greece and Economy Before Crisis1.1 Public Finances the Crisis1.1.1 European Union privilegesCHAPTER 2 Greece Their Current Situation2.1 Private usage and unemployment2.2 Investments2.3 doubt an liquidity2.4 Current Public finance vs the international economyCHAPTER 3 Impact Greece on EURONET and Rest of The World3.1 What is Grexit and the Impa ctCONCLUSIONReferencesFiguresINTRODUCTIONGreece is exit through a very tense season related to their economy for a while now. They are facing ultimatums to correct their financial situation, taking measurements if they deficiency to continue being part of the European Union.Greece is part of the European Union which consist of some countries united by the euro in the euro zone. And this group is about to financially collapse, due to financial problems from Greece and fellow countries as Spain, Portugal, Ireland and Italy. This situation is threatening to bring down the complete European continent and the rest of the World.In this paper, we will plump on the Economic developments around Greece prior becoming part of the European Union and when they adopted the Euro as their monetary identity. We will give an inside on Greeces sparing status before 2000 2002, during the adoption of the Euro (after 2002) and all the related consequences for themselves as well as the whole European Union and EuroZone countries.We will discuss, their Public Finances, International Economic aspects, some Domestic Economical aspects and their relationship and limitations with the other countries around the world.CHAPTER 1 Greece and Economy Before CrisisGreeces economy rely majorly on service delivery areas, under which Tourism is one of the biggest income generating post (about 73% of the GDP). In 1980, Greece joined the European Union and in 2002 they officially adopted the Euro as a generic monetary agreement between the EuroZone.This adoption of the Euro, gave the country an increase in consumers spending which on its turn gave the country a advance in the economic growth.During this period Greece experienced great rates of growth. Figure 1, gives an overview of the GDP rate from 1996 until a dip (+ -0.2) in 2001 and a some(prenominal) greater dip (+ -0.7) in 2005.However, due to international financial crisis in 2008, also Greece started experiencing deficits within their economical budget, which had as a consequence the start of an economic crisis.1.1 Public Finances the CrisisPublic finances started going drastically in the negative direction, and same was the case for misreported statistics, which consequently had an effect on credit rating agencies, who limited the possibility of Greece to request additional credits. This limitation pushed Greece in more financial in perceptual constancy with a debt crisis as a result.1.1.1 European Union privilegesGreece, had different benefits since there merging with the EU. Their input per year account for about 2.35% of the GDP of Greece. Additionally, Greece received on a structural basis an EU funding of 20 billion from 1994 to 1999 and of 24 billion from 2000 to 2013. These funds has been used to lower the countrys deficit and to further development the country.To be able to continue receiving support and assistance of other EU countries and international lenders, the Government of Greece started a 3-ye ar program, in the attempt to start pushing back on the debts. This program consisted ofLimiting judicature spendingResizing the public sectorReforming health careRevising tax regimeThe idea was for this new approach to help Greece to reduce the deficit by 4% of the GDP as per 2010 and by 3% of the GDP by 2012.The major deficit generating posts resulted to be the tourism the shipping industry. Another aspect that contributed to the crisis of Greece is a trade deficit in which in 2009, the import was about 64 billion whilst the merchandise reached merely 21 billion.CHAPTER 2 Greece Their Current SituationGreece is currently progressing slowly in defeating the huge problems they were confronting with this torturous recession. Even though this recession was and still is a difficult period for Greece, we must accredit for the fact that they managed to achieve some quantifiable results with the challenges they confronted with the adjustments.This statement was set after the completio n of the review mission for Greece which was conducted by the staff team of the European Commission (EC), European central Bank (ECB) and International Monetary pedigree (IMF). This review was based on policies that they managed to create with the staff level authorisation in order to monitor submission with the terms and conditions that were set for the Program.The staff team and the authorities are well aware and also agree that Greece is at a beginning of an economic stability and a balance for a gradual restart or reboot of growth which is almost in line with their previous projections. Prices are adjusting and inflation is beneath the euro area average.The conditions to sustain this growth are available but the risks, uncertainty and restrained financing conditions are delaying the process of recovering and measuring the public finance.The real number GDP increased with 0.8% in 2014 for the basic cartridge clip since 2007. The private consumption and the net exports cau sed economic activities that resulted in a 0.8% growth of the real GDP.2.1 Private consumption and unemploymentDue to reduction on the the prices and adjustment on the labor market, private consumption experienced an increase for the first time after 5 old age of an ongoing contraction. The drop in oil prices and return of under-the-mattress deposits can benefit the Private consumption.Increase of net export was the result of improvement of service export caused by tourism, shipping sectors and goods export. The devalution of the euro can lead to more export growth in 2015 for tourism and shipping. At the same time the strong domestic beg is increasing import.In 2014, 100.000 new jobs were created which reduced the unemployment rate 26.5% . For this year the rate is project to drop slightly to 25.6%. Once the expected growth in 2016 picks up the unemployment rate is expected to reduce further to 23.2%.2.2 InvestmentsSame as the real GDP and net export the authorisements experienc ed a minor increase for the first time since 2008 and is mainly caused by equipment investment. The uncertainty of investors not investing in Greece is still limiting the credit supply from the financial sector.The real GDP is projected to increase to 2.9% this year, as investment recuparate with the help of structutal reforms.2.3 Uncertainty an liquidityUncertainty and lack of clear vision on the policy stance of the new judicature that was elected last December 2014, is damaging the postive momentum for Greece. The economic sentiment indicator (ESI) worsen last March because of the diminishing confidence in the line of business sectors.This significant political uncertainty is a result of having recent election for a new government in January when the country has a scheduled outcome date of the Programme set for February 28th.The newly-elected government negotiated an extension of 4 months of the Programme.The extension allows Greek authorities to invent and fulfil in coordin ation with EC/ ECB and IMF, reforms of the review and design follow up procedures to reach a succcessful conclusion of the Programme. The following agreements were agred upon with the new goverernment1 May Loan take hire of 200m to the International Monetary Fund (IMF), with a few days grace due to the long bank holiday weekend8 May Payment of 1.4bn maturing 6 months Treasury bills12 May Loan payment 760m of IMF loan15 May Payment of 1.4bn maturing 3 months Treasury billsEnd of May 2.5bn to pay salaries and pensions30 June Expire day of the 240bn bailout agreement between the euro zone and GreeceJune and July 6.7bn due to be repaid to the European Central BankThe current account balance is projected to improve the think due to weakning euro as well as the ongoing structural and institutional reforms. The current CA deficit is estimated to decrease to 1.6 5 of GDP this year to 1.4% in 2016. The forecast for the headline balance must be lowered for this year and 2016 to -2.1% and - 2.2% of GDP. This is a reflection of the weaker than expeted revenue, as a result of lower growth hampering the rebound in collection after the first three months of the year. Assuming that the profits from the Eurosystem securities transactions, SMP and ANFA programmes, are transferred will most probably lead to new fiscal measurements. Limitations on expenses were prerequisite in 2014 and will remain the same in the future.This year the governmments debt-to-GDP ratio is due to reach its peak and start declining in 2016. Having back-loaded payment arrangements for the European Financial Stability Facility (EFSF) loans together with favourable intrest rates and better cash management will add to the process of keeping interest expenditure low for a longe period , eventhough the stock of debt is high.2.4 Current Public finance vs the international economyAs Greece and the other debtor countries such as Spain, Italy, Ireland and Portugal are heading towards default, the whole contine nt of Europe is in danger.Even though the economy of these countries are relatively small in comparison with several other members of the euro zone, they form a huge threat due to the huge interconnection of the European financial system because of the euro.Greece borrowed money from banks, investors and other governments throughout Europe.As they are reaching closer to default everyone that lent them money is vulnerable and becomes financially weaker including the ones that lent to the lenders of Greece.The problem of Greece is affecting the whole European continent and is triggering a chain reaction of defaults. If Greece defaults, so will Spain, Italy, Ireland, Portugal and so one until it reaches the complete European continent with consequences for the whole World.Even if the other Nations adapt the austerity measurements on Greece and Germany and the other countries bail them out so they can pay their depths, there is no guarantee or system in place to avoid this from reoccurr ing.CHAPTER 3Impact Greece on EURONET and Rest of The WorldAs mentioned before, Euro is the common currency for the entire European Union, and this group known as the Eurozone is affected due to wide range of currency fluctuations and the Drastic fall in the value of Euro.The countries, forming part of the Eurozone, who agree to support Greece of preventing them from getting to default, were directly and immediate impacted by the financial crisis in Greece. There is daunt of a possible domino effect on the economy of Portugal, Ierland, Italy and Spain, well known as PIIGS, as result of the problems associated with the Greece economy.This fright has the consequences that the interest rates will be increased, which will reflect in a higher outflow for the countries when borrowing in the open market. The Global banking system will be affected also by the Greece crisis and also some other Global major banks who have invested in Greece when they issues their bonds or requested to invest in Greece. This means that the Grexit will have a direct impact on these investors, which will have difficulties getting their investment back. At the same time you will have the ordinary people who has their money in the pension funds. Grexit will have direct affect on the current funds. The unemployment percentage in Greece, which has been growing because of the economy crisis, will also have direct impact. Because of the relation with other market in the open market, these other markets will also be affected one way or the other, which might have an affect in their on their currency.The European Union, shorted as EU, has been formed with the countries that are members nowadays. They give the monetary the value that it has, which means that if one left, the value of the currency will also tend to drop, which has as consequences increasing its competiveness.3.1 What is Grexit and the Impact?In February this year, the Eurozone gave the government of Greece an extension of 4-month p eriod in order to come back with a plan on how they will proceed. Grexit, which stand for Greece Exit. It is important to differentiate the short and the long run when exiting the Eurozone. In the short run the economy of Greece might suffer a severe GDP contraction. In short run, currency devaluation, credit crash and a tighter fiscal stand will be the consequences.So far it seems that there is general consensus that if Grexit come true, there will be a severe direct impact on Greece. There are some who think that Greece should leave the euronet under the argument that on the long run, Greece will have a boost with a looser monetary policy and a cheaper currency.Segura-Cayuela, argue that having a weaker currency will be positive for the economy only if Greece implements the reform that the country has failed to implement to avoid Grexit.According to BAMLs Athanasios Vamvakidis, the new Greek currency could devalued by 50% after the Grexit.In summary exiting the Eurozone, Grexit, w illReintroduce the drachma, which means that the euro will stop its existence in the country of Greece. Drachma was the currency Greece has. There exist the possibility to change the name. What will be the value of the currency is a question mark and a big issue is how much is the government allowed to print for the country.People might start pulling their money from their banks accounts.Being part of Eurozone, Greece has the access to emergency liquidity from the ECB, Euro Central Bank, means this option will not be possible anymore.Immediate spike inflation will be effective, which will do more damage to the economy of the country.Unemployment will peak higher then it is right now, which will have direct impact on the economy and social economy.CONCLUSIONAs per most articles describe that the most viable option right now is to not exit the Eurozone and come to a deal in order to come out of the budget deficit they are in. It would be to risky to get out of the Eurozone and still s urvive in this economy of today. The direct impact will be to big for the country and the recovery period might be to long.Grexit will also have an impact on the other countries in the Eurozone, there public finance will also be impacted. It might also impact the entire world in the financial aspect.Maintaining the Eurozone and implement a general fiscal policy, should be able to control the trading of the Eurozone members and mitigate a country getting into huge budget deficit.As the Euro area (euro zone) countries are using a fundamental division of a monetary policy and a fiscal policy, the euro requires a fiscal union and a monetary union to have some kind of control in the monetary system. By replacing this with one political presidential term with the authority to set fiscal policy within every euro area country with the power to cut spending, raise taxes, and set laws. A fiscal union the like this can prevent excessive borrowing and spending like the case of Greece.The chal lenges to accomplish this central fiscal union are enormous but not impossible to realize. A Unites State of Europe.Without a centralized fiscal union countries will continue to run deficits, accumulate depths, degrade the value of euro and threaten stability of Europe.ReferencesVisited websites(http//www.tradingeconomics.com/greece/gdp-growth) (visited on May 29th, 2015)(http//theindiaeconomyreview.org/Article.aspx?aid=41mid=3) (visited on May 29th, 2015http//ec.europa.eu/economy_finance/eu/countries/greece_en.htm European (visited on May 29th, 2015)Commission- Economic and Financial Affairs- Economies of member states (visited on May 30th, 2015(http//fpc.state.gov/documents/organization/142363.pdf) (visited on May 30th, 2015)http//ec.europa.eu/economy_finance/eu/forecasts/2015_spring/el_en.pdf (visited on May 31st, 2015)Viewed VideoGREECEThe recovery fails to accelerate amid high political uncertaintySource Bloomberg Published on Feb. 12 The European Debt Crisis by Jonathan Jarv is (viewed on May 29th, 2015)FiguresFigure 1. This figure gives an overview of the GDP flow of Greece in the period of 1996 to 2005.

Management Practices and Performance of SACCOs

Management Practices and Performance of SACCOsINTRODUCTIONThe background gives a brief history of the savings and credit conjunctive societies, highlights its grandeur to the society and touches on the problems that apply influenced its implementation of its roles and finally on the possible solutions or ca theatrical roles of actions. This preambles the statement of the problem, the purpose, signifi placece, scope and limitations of the study together with the research questions.BACKGROUND OF THE teachingOne of the basic principles of concerted nest egg and Credit Movement is the belief in co- carrying into action and uncouth self help for the uplifting of fractions standards of living. Kussco(2006). Members with a unwashed lodge fall in hands to form those quasi-banks institutions. With pays mobilized by dint of such joint efforts the savings and credit society members build up the capital which they can use through local arrangements to finance their get social as w ell as economic development.The traditional form of cooperation involved working together on farms, hunting and gathering. All populate go basic require of food, shelter, security and belonging. People would invite neighbors to obtain and give a hand. Also people did non have m cardinaly and re pedigrees, which enables individuals to employ people or machinery to do the work for them.In any community cooperation usually exists in the form of associations of people who come together as a root driven by their social and economic needs in order to cope with their problems and improve their conditions of living MOCD (2006) check to Odepo and Nyawinda ( 2004) , savings and credit joints societies ( comm however referred to as SACCOs), accept monthly payments for shares from which, members whitethorn borrow an amount equivalent to twain or collar times their own savings if they can get other members to guarantee them. They say that growth in SACCOs in the last twenty years has be en spectacular. According to statistics from Kenya Union Of Savings and Credit Cooperative societies (KUSCCO), the number of SACCOs rose from 630 in 1978 to 3,870 by the end of October 2002 while savings and share capital rose from Kshs. 375 million in 1978 to Kshs. 80billion by 2003. Credit outreach connaturally recorded significantly, having risen from 357 million in 1978 to kshs. 70 billion by 2003. Saccos active members numbered over 1.5 million by 2002 having risen from 378,500 members in 1978. Their rapid growth indicate that they have filled a need which had non been made by the financial institutions. Of the Kshs. 110 billion in the afoot(predicate) share capital and deposits held by concerteds, the statistics show that Kshs. 90 billion has been lent out to customers. However, the recent statistics from the ministry of cooperative development and marketing shows the position as on a lower floorThe internal management principles need to be enforced strongly to improve ef ficiency of collections, and even perhaps consider insuring the impartwords in case of demise of member loaned.The Sacco faeces has the capacity to propel the economic lives of the citizens if indeed it is well managed. Its principles of democratic management, voluntary membership and frequent bond give it the base to take its members to naked as a jaybird heights. The movement has been a boon for this country and many people would not be where they are now were it not for the harvests of the opportunities sowed in the garden of the movement. It mobilizes savings and finance and penetrates to areas not valued by other financial institutions, while serving special needs of members. The prospects for the industry are so huge. By identifying the incident that the easiest come of funding is the locally mobilized savings, the saccos should come up with innovative judgements to encourage the members of the common bond to save, as a setoff step. Other sources of funds like the coo perative bank, which all the saccos have a stake in, should be considered exhaustively. Besides they should think outside the box and get organizations willing to empower members economically by allowing loans at a rate less than what saccos offer to its members. The saccos umbrella body- Kussco- has a fund to assist the member saccos when they are in need of the funds.Saccos face numerous challenges that block up the exploitation of their full potential. Mudibo(2005) raised concerns on the calibre of leaders who run saccos noting that since these are voluntary organizations, members can elect anybody they like, who whitethorn not necessarily have the skills to run a sacco. He suggested that before a member is elected, he should have certain number of shares so that he has something to loose if he mismanages the sacco. Non subsidence and delayed remittance of cooperative dues by employers has led to inconveniences and loss of income by the societies. New rules have however provide d stiff penalties for errant employers. Members are to a fault at risk due to HIV/AIDS and counsellings to attract sassy members are undeniable.Ngumo (2005), in his article the cooperative movement in Kenya the eagle that substance abuse fly Nairobi, Kenya institute of management raises several unsettled issues affecting the saccos. First the government should decide on whether to control or facilitate the cooperatives. Cooperative roles should be re-emphasized. One member one vote should be questioned. Instead he suggests the policy of one share one vote. Still, ownership and control should be de- linked for nice corporate governance. Then business strategies need further scrutiny before implementation. He concludes that it will be sad for Kenyans to compose a eulogy for the movement after all this time. He said We cannot milk a cow, refuse to feed it, cry that it was wonderful cow and blame God for its demise.According to interior(a) Micro and Small Enterprise (MSE) Baseline Survey (1999/2000), Kenya has a relatively well developed banking and formal financial sector. This consists of the Central Bank, 43 commercial banks, 16 non-bank financial institutions, 2 mortgage finance companies, 4 building societies , 8 developed financial institutions about 3870 cooperative savings and credit societies, 38 damages companies, the Nairobi stock exchange and venture capital companies. The survey further indicates that n early 89.6% of MSEs had never receive credit and other financial services.The unserved credit needs portrayed by the statistics in the table 1.2 in the background section above signifies a wealth of opportunities untapped by all the financial institutions. The confirmation of the existence of market implies that a deal out needs to be done to raise what it takes to serve a market. The most basic need is the finance to leave in a discipline way. Voluntary savings from members is and then imperative. Saccos abilities to improve their members w ealth is viewd by a number of factors, among them is the funding levels due to members bare(a) propensity to save, contri butions remittance by the employers, legal and regulatory framework, internal management principles and drills (e.g customer service, marketing, dividend / interest payment etc) amongst other factors. These factors level of influence on saccos office to perform captured the attention of the researcher. It was the intention of the researcher to examine them and possibly recommend on the best way to mitigate the on a lower floorlying challenges and take advantage of the obtainable opportunities by exploiting existing strengths.Voluntary deposits / savings as a source of commercial finance for small credit institution have generated a lot of interest and debate in recent years. Locally mobilized voluntary savings is potentially the largest and the most immediately available source of finance for some micro credit institutions, most of all the saccos. Bearing this in mind, one is left to wonder what is hindering the saccos from prosperity, given the access to its resources and the wealth of its opportunities. The purpose of this research is to widen the discussion of what, when, why and how a sacco should use its resources, get the right framework, apply effective policies for improvement of the wealth of its members. Getting these elements right is a crucial trip of meeting the demand for the unmet credit needs. The researcher will also seek to bridge the gap that exist between Saccos that have exemplary performance in their services to members and excellent returns and some others which barely afford to offer loans, leave alone dividends.According to Armstrong, performance is often defined in output call the achievement of quantified objectives. only if performance is a matter not only of what people achieve but how they achieve it. High performance result from withdraw behaviour, especially discretionary behaviour, and the effect ive use of the required knowledge, skills and competencies.STATEMENT OF THE PROBLEMQuite a number of Saccos e.g TENA sacco, have a long string of unfinished loan applications from members SACCO star ( 2006) . Some saccos pay out little or no dividends/ interests on members savings. Some others still have a low loan multiplier and / or limited concurrent loans compared to some well performing counterparts e.g Stima Sacco, Sacco star,(2006)- which has even started ATM services for FOSA customers and manages to advance more that three times the members deposits, can give up to four concurrent loans without closing any applications for the year and gives loans almost immediately it is applied for by the member , (mwaura (2004). Among the major problems hindering this is the unavailability of much needed cash to lend, when it is required. This therefore causes a mismatch in the availability of funds and the demand for loans. Other reasons could be unretentive investment decisions or l ack of investment opportunities or delayed cash flow from employers/ members among others.Rutherford (1999) wrote that funding these large sums of money is the main management problem. The only reliable and sustainable way is to build them from savings. Saving- making a choice not to consume- is indeed the fundamental and unavoidable first step in money management, without which financial services cannot operate. The poor themselves recognize the need to build savings into lump sums and contrary to the popular belief, the poor want to save and try to save, and all poor people buy food those who are entirely outside the cash economy can save something, no matter how small, When poor people do not save, it is for luck of fortune rather for lack of understanding or of will.Most of the saccos have succeeded in mobilization of savings from members. Inspite of this, still they have a huge backlog in terms of loans advance to members (Sacco star, 2005). Furthermore, most of the saccos pay little dividends/interests on deposits or none at all, in-spite of trading with the deposits/savings. It was therefore the intention of the researcher to seek to register the determinants of saccos capabilities to improve its members well being.OBJECTIVES OF THE STUDYMain ObjectiveThe main purpose of this study was to investigate and refine our understanding of the major factors that determine the performance of SACCOs to enable them maximize their members wealth.Specific objectiveSpecifically, the study soughtTo find out the extend to which the nature of business/ check off system affects performance of SACCOsTo raise the relationship between management practices and performance of SACCOsTo examine the level of gentility and training of general members, committee members stave and their effects on performance of SACCOsTo determine if long term investment affects performance of SACCOsRESEARCH QUESTIONSTo what extend does the nature of business/ check off system affect perfor mance of SACCOs?Do management practices affect performance of SACCOs?Is education and training of general members, committee members stave a factor that affects the performance of SACCOs?Does long term investment affect the performance of SACCOs?SIGNIFICANCE OF THE STUDYThis study is aimed at developing an understanding on major factors determining the accessibility to funds to process and dispense all loan requisitions in time by saccos in Kenya. It is seeking to examine and underscore the salient principles that have a bearing in the success in similar or related areas of focus, and hence suggest ways and means of overcoming failure.The study is aimed at benefiting, among others, the management teams. These are the people entrusted by the members to take care of their interests in saccos. They will study to understand and improve on policy setting and implementation for overall sustainability of the sector. The entire sacco membership will also get enlightened. The members of the common bond will appreciate their role in sustaining their welfare through sacco as a vehicle. They will be more willing to take a center role instead of quiting when they feel their interests are not being taken care of by the people they entrusted them with. It will also benefit the sacco staff/secretariate these are the people who get their daily bread from the sacco. They will understand their role in the growth of the organization, hence acting to secure their source of livelihood.It will also be of good use to the government department in charge of cooperatives. The report will bring to light issues requiring framework and only them can attend to for the overall sustainability of the sacco industry. Finally other researchers in this area will find this useful. They will get recommendations for further research from this study. The beneficiaries will have access to the information on the findings from the compiled report. The final report will be available in selected major li braries, organized groups, especially the respondents will get a copy of the report on the findings.SCOPE OF THE STUDYThis studys scope was the saccos based in Eldoret. The researcher selected a suitable sample from the population by purposive convenience sampling. According to the statistics from MOCD/M, there are about 10 such saccos within Eldoret town. About 40 % of the population (4 saccos) were covered by the study. The study targeted the members of the interchange management committee (CMC) in the selected SACCOs.LITERATURE REVIEWIntroduction to literature canvasThis section contains literature that has been reviewed and continues to be reviewed relating to the problem. Literature review involves locating, reading and evaluating reports of antecedent studies, observations and opinions relating to the planned study. It therefore enables the researcher to know what has been done in the particular field of study, makes one aware of what has been made and what challenges rema in, and gives suggestions on the variables and procedures that could be used. Literature review logically leads to objectives on the study.Past studies in the areaBackground informationAccording to Mwaura (2005) sessional paper No. 4 of 1987 on renewed growth through the cooperative movement highlighted the significance of the movement in national development. By this time there were 3500 registered cooperatives with more than 2million members and an annual turnover greater than 6billion. The paper celebrated that one in every two Kenyans derived its livelihood from the cooperative either directly or indirectly. The cooperative movement in Kenya is reputed to be the most advanced in the African continent. The Kenya Nordic agreement of 1967led to the establishment of the Cooperative college of Kenya at Langata, which is the main training ground for both ministry staff and the movement employees.According to MOCD (2002) the first Savings and credit Cooperatives in Kenya were started in the sixties. The Government annual economic survey shows that as at December 2002 there were more than 2,400 active SACCOS with membership in excess of 1.5 million people. Share capital stood at Kshs. 65 billion while outstanding loans were Kshs. 59 billion.. The structure of the cooperative movement in Kenya comprises of four tiers. These include the primary societies, secondary cooperatives, tertiary cooperatives and nationwide cooperatives.The Kenya Federal of Cooperatives (KNFC) is the only apex society in the movement. It was formed with an objective of promoting, developing, guiding, assisting and upholding ideas of the cooperative principles. KNFC is the link between cooperatives in Kenya and the international cooperative alliance. Of special mention here is the African Confederation of Cooperative Savings and Credit Associations (ACCOSCA), which is registered under the Societies Act, Chapter 108 of the laws of Kenya. Its area of operation is Africa and the adjacent island s. Its head-quarters is in Nairobi. It has twenty five affiliated organizations. It is affiliated to the International Cooperative Alliance through its members in the world council of Credit Unions (WOCCU).According to the cooperative Societies Act (Cap 490), persons desirous of forming a cooperative society must fill the prescribed form from the commissioner for cooperatives. It requires that at least ten members will sign the form, though for savings and credit the commissioner has been asked for more people. The form requires that the society makes its by-laws. For ease of convenience the commissioner has prepared model by-laws for the cooperative societies. The societies are nevertheless free to change these or come up with their own by-laws. The by-laws must detail the following the name of the society, objects of the society, purposes to which its funds may be applied, disposal of surplus funds, qualifications for membership and terms and conditions of price of admission of m embers.For savings and credit cooperatives, the following are also includes, the rate of interest, the maximum amount loan-able, extension, renewal and recovery of loans and the consequences of default in the repayment of any sums due. On receipt of the application form the office of the commissioner will register the cooperative society on the advice of the cooperative officer in charge of the area of operation.Chapter 490 provides that no companies registered under the keep companys Act or any un-incorporated body of persons shall become a member of a registered society except with the written permission of the commissioner. It also provides that no person can join more than one cooperative society with unlimited liability. A member may nevertheless be allowed to join two or more cooperatives with limited liability if the two are in different areas of operation. A cooperative society just like a company, may be registered with or without limited liability. The commissioner has po wer to refuse to register a cooperative society. Nevertheless, the refusal must be given to the applicants in writing. Applicants can appeal to the minister for cooperative developments and finally to the high court. The commissioner may register the cooperative either provisionally or fully. A provision adaptation is given where some requirements for registration have not been met. The applicants are given a period of one year to satisfy all conditions. A provisionally registered cooperative society may act as a fully registered in all ways. Upon registration such a cooperative society is deemed to have been registered on the date of the provisional registration. Upon registration a society becomes a body of corporate.According to Ouma(1980), the term cooperative in its widest sense simply means working together. In this stage setting cooperation is as old as mankind and exists wherever the human family is found. Indeed such cooperation exists among animals, insects, bees and an ts. indeed cooperation generally means working together for a common purpose. Thus group effort through traditional form of cooperation may be traced in all communities of the world. However its narrow sense as a movement, it means an association of people whose purpose for group work yields good results not only for the members but to the community in general and even to the earth at large. Cooperative is a business organization by profit, but rather the result of mutual association whose objective is equitable economic melioration of man and the society in which he lives.According to the MOCD, cooperatives are regulated by a set of principals. These principles were formulated by a group of people who lived in a village in England known as Rochdale, and they are therefore referred to as Rochdale pioneers. They formed the first successful cooperative society in 1884. This society which was a consumer cooperative society was formed in 1844 when Britain was undergoing industrial re volution. As a result of the revolution, a lot of people lost their jobs in the factories as machines were introduced to replace them. In addition to this there was general lack of credit and supply of essential commodities like salt, sugar, flour and cooking fat. Businessmen also took advantage of this situation and started offering impure products at high prices.It is against this background that Rochdale Pioneers decided to draw up some sort of principles which would guide their operation as cooperative society. These principles were intended for the regulation of cooperative society as indicated by the great stress on the sale of pure products and the sale of goods for cash only. It was therefore found necessary to formulate the principles for adoption by other types of cooperatives.The International Cooperative Alliance (ICA) Commission of 1966 adopted the following principles which are genuine for the lead of a genuine cooperative society- Open and voluntary membership, democ ratic administration (one man, one vote), limited interest on share capital, payments of dividends and bonuses to members, promotion of education and cooperation with other cooperatives at local national and international levels.According to Ouma (1980), the traditional cooperatives have been in existence in Kenya, as it has been elsewhere, from time immemorial. Examples of such cooperative practices are to be found in Kenya. The group association is normally based on lineage according to the natural geographic environment in which the members of the group are born. This is usually based on clan or people who live within the same village. It can be stated with funfair amount of certainty that the traditional forms of cooperation do generally speaking, form the basis for the establishment of modern cooperative organizations. There is for instance in Luo, Saga whereby a group of people do ploughing, weeding or harvest for each member of the group in turn. In Kwath, members of the gr oup look after their cattle together for three or more days consecutively, in turn. In Kikuyu there is what is called ngwatio (Mwethya in Kamba) whereby members of the group get together to build houses for themselves, each member of the group breinging what is required for the construction e.g. grass and poles. When the first house is completed then the members start on the next one.In Kisii, there is what is called obituary wherby men go on a job hunting exercise, and when they kill an animal, they will either divide it or take it home (village) where it mis cooked and eaten communally by all the villagers.Among the Kalenjin there is the practice of Kokwet wherby a group of people would go out to harvest or weed the garden of their members in turn. The Kalenjin also have Loget whereby the men go in a joint effort to kill animals for food.According to Ouma(1980), practically all the ethnic groups in this country, whether small or big, has since time immemorial practiced mutual asso ciation in order to satisfy their needs socially, economically or otherwise. It is also necessary to point out that in the traditional forms of cooperatives, in occupation to the modern cooperatives, members had a great sense of commitment and belonging.. They had mutual trust and were voluntarily involved in their activities and affairs.. It is of course not possible and it may not be expected that with the development of cosmopolitan populations consisting of different ethnic groups and tribes that members can still hold together without some form of regulations. Hence the necessity to stamping ground to legal reinforcement and education in order to develop efficient cooperative organizations.Although these associations of group effort could be deemed self help which is infect a for of cooperative , it is nevertheless true to say that the modern cooperative movement, born in Kenya during the beginning of twentieth century owed much of the cooperative idea to these primitively p ractices. It is also true that the modern cooperative associations in this country took a different approach and mainly because of expediency. Its founders the British colonists- merely wanted to use it as a cheap means of business for easy profit making. They never spontaneously involved the indigenous people who already were familiar with cooperative effort.The early settlers were beset by very many problems as regards their agricultural activities. For instance prices for Agricultural products were very low, transport of the agricultural inputs and outputs to the markets by each individual settler were classical nightmares. Therefore this new system of farming with its large scale production caused the needs for associations by the few European farmers who undoubtedly had conceived the cooperative idea from the British cooperative movement back home. It will of course be recalled that the formal and successful cooperative organisations started in Britain in 1844.In 1908, they re solved to join together at a place called Lumbwa and formed Lumbwa cooperative Society Ltd. Although not registered as such under any cooperative Societies Act, it is deemed to be one of the modern cooperatives in Kenya. The main objective was to purchase merchandise i.e. fertilizers, chemical seeds, and other agricultural inputs through collective effort, and to market their produce collectively thus taking advantage of the economy of scale. It would appear quite clear at this point that cooperatives in Kenya did not start as a poor mans defending weapon against the exploitation by the middlemen, as it had started in Europe and elsewhere. It was on the contrary an easier means to enable the white settlers to receive high returns from their agricultural produce. Thus it was rather an economic necessity for the well to do and not the ordinary man with little or no means at all.It will be remembered that during this time, there was no cooperative societies ordinance to regulate and t o assist the management of these cooperative efforts in Kenya. It is also not clear whether or not Lumbwa Cooperative society ltd was registered even under the companies Act, otherwise calling it a co-operative society was misleading. However one thing remains certain, and that is that the settlers wanted to maximize their profits by trading under the pretext of a co-operative organisation, thereby enjoying its privileges.According to Ouma (1980) many self help groups, most of which were very small and un-economic, were started all over the country. But these were not economically viable and consequently had to be amalgamated into larger economic units. These were for instance Kenya farmers association (co-operatives), Kenya planters co-operative union, Kenya cooperative creameries and Horticultural cooperative union. It is a fact that these institutions formed the backbone and the base for formal cooperative movement in this country. These initial cooperative ventures in Kenya were unfortunately not quite in the purpose of the Rochdale Pioneer Cooperative Society. They never for example, observed the principle of membership, for no African could participate in it until later on. The need to form formal cooperative organisations arose when some African peasant farmers realized that they were being exploited, especially by the Asian traders who were paying very low prices for their agricultural produce.As early as in the thirties there were attempts to form cooperatives by the indigenous people of Kenya, in spite of lack of proper guidance. Of these early attempts two examples can be mentioned here, The Taita vegetable company and the Kisii coffee Growers cooperative. The farmers had 239 members and bought 3 lorries at the cost of $1170 out of the profits made from the operations. The group was producing, grading, transporting and selling on the mombasa market over 900,000Lbs of vegetables a year and the growers received over $4,500 out of a gross selling pri ce of $ 6300. This was indeed too substantial an enterprise to be left without a legal basis. It was later registered as cooperative society. The Kisii coffee growers Association which was able to raise from the sale of its coffee a sum of $2470 of which $1240 was paid out to the 251 members who had cultivated only 159 acres, but had already accumulated a surplus of $1065.In 1994, the British Colonial Office in London appointed Mr. W.K.H Campbell to come to investigate the possibilities of African connection in the cooperative organisations. He carried out his investigations by touring and visiting many towns and districts in the republic of Kenya and talking to the people. After all his investigations Mr. Campbell submitted his recommendations that subject to availability of dependent staff attempts to organise cooperatives were worth while. It was also during this time that the first African Mr. Eliud Mathu was nominated to the legislative assembly, as the Kenya parliament was called then. He demanded in parliament and such people as Ex chief Koinange from outside, that the Government should come out openly to encourage African participation in the cooperative movement.It was as a result of Campbells recommendation that the cooperative societies (Registration) Amendment, Ordinance of 1932 was repealed and the cooperative societies Ordinance of 1945 was enacted under Cap. 287. It was as a result of this new ordinance that the department of cooperatives was created, although it was placed under different ministries at various times.Consequent to the establishment of the department, a registrar ( now called commissioner for cooperative Development) was appointed and together with his staff was responsible for registration and promotion of cooperative societies in the country. The 1945 cooperative societies ordinance further gave the registrar certain powers over cooperative societies, for example refusal to register a cooperative society, cancellation of cer tificate of registration, to analyze societys books of accounts, authority to inspect books of society, authority to settle disputes in cooperatives only to mention but a few examples.The new cooperative societies ordinance thus afterwards enabled the Government to establish the department of cooperative development. The department was charged with the responsibility of promoting, controlling and educating the members as well as the public on the need and returns of cooperative efforts, with particular emphasis on the rural areas. The Registrar of cooperative Societies as the head of cooperative department was designed then and was given staff in ranks of Assistant Registrars and cooperative inspectors, though very limited in number. The assistant registrars worked very closely with the department of Agriculture, in organizing cooperatives which served as the nucleus for the understructure and expansion of various types of cooperatives such as Pyrethrum, Maize, vegetables, dairy , cotton, consumer thrifts and others.According to Ouma (1980), traditionally, people of different nations used barter methods of exchange. That is the exchange of goods for goods. It therefore requires a change of attitude and new outlook towards life in order to be able to accommodate and apply this new mode of economy usefully and

Legal Opinion For 8th Social Studies :: essays research papers

Legal OpinionA. I picked the side of New Jersey in the New Jersey vs. T.L.O case. The reason I picked that side is because the fille whas smoking on school grounds and she was not allowed to do that. Another reason is the teacher that found the girl smoking had the honest to bring her to the Principals office, because she had a reason to. Finally the girl denied smoking, she said she didnt smoke and she probably would of got in less trouble if she told the truth.B. A girl was caught smoking in a shcool bathroom. A teacher caught her and took her to the Principals office to be attended. The vice-principal found more than just cigarettes, they also found rolling papers, marijuana, a pipe, a large amount of cash, and an powerfulness card with a list of student names and amounts of money owed to her. The Juvenille Court prosecuted T.L.O for drug dealing. T.L.O ploted that the search was unconstitutional and was breaking her rights under the 4th amendment. Juvenille Court stillness t hought that it was alright to search her bag because the school had a suspicious reason for commiting a crime. The case then went to the Supreme Court, they ruled that the school by any means had the right to search T.L.OC. The New Jersey High School had the right to search T.L.O. The Fourth Amendment says that nobody has the right to search someone for no reason unless there is a probable cause. For that means the school had no reason to search the girl. The law for searching in a school is different. You are allowed to search only if you have a reason. For that means the school did have a reason.The school also had the right to search the girl, because a teacher found the girl smoking in the bathroom, It clearly says that smoking was not allowed on school grounds. On top of that the girl lie about smoking. That makes everything worse for the girl. The teacher found the girl smoking in the bathroom, but T.L.O denied it, in the search the Vice-President found cigarettes. That has go t to mean she smokes.D.If I were the opposing impression I would think the search was wrong because there was no probable causeand there was no evidence for her smoking.

Bernard Bolzano-Pedagogue Essay -- Biography Biographies

Bernard Bolzano-PedagogueABSTRACT Bernard Bolzano (1781-1848), the famous logician and mathematician, worked from 1805-1819 as a religious prof at the Prague University. His studies focused on three main themes (1) ethical education, including a rather liberal sexual education as well as the problems of the coexistence of Czechs and Germans in one country (with foresight into some of these matters before the rise of extreme nationalism) (2) social problems, where he formulated for the first time his social-utopian vision of human connection based on the fundamental equality of people, ideas later gathered in his book, Von dem besten Staate and (3) philosophy and religion, of which his lectures concentrate on the social function(s) of the Church and the social mission of the priesthood. Because of his opinions, he was disqualified from his professorship, resulting in a Church investigation against him. He was unable to return to the university, denied the right to publish in Austria , and relegated to live out his brio as a private research worker. Bolzanos fate is similar to that of another pedagogue from Bohemia-Jan Patocka. Bernard Bolzano (1781-1848), presently a logician and mathematician of international repute, worked from 1805-1819 as a theological professor at the Prague University. This post he received immediately after he ended his mathematics and theology studies. In this period he had already publish his first scientific study Betrachtungen ber einige Gegenstnde der Elementargeometrie (A reflection on some elementary geometry questions), which was his final dissertation study. In the study Lebensbeschreibung des Dr. B. Bolzano (Biography of Dr. B. Bolzano), he remembers, that it was not voiced to dec... ...he pseudonym Charles Seasfield or the painter during the Biedermaier period - Frantiek Tkadlk. He also cultivated many less well-known teachers, priests, doctors and lawyers, who concentrated on spreading culture and improving the general p ublic education.Mostly through Bolzano, the future development of Czech education has been influenced by the Enlightenment. We can say it through the words of the Czech philosopher Jan Patoka, whose life and status as a professor was very similar to Bolzanos Enlightenment, which does not only mean the intellectualism of man to things and the world, but the attempt to save man from enslavement, wonder and lies everywhere, where the intellect can save them entirely, not to ridicule with the depths of human existence - it is a part of the Czech destiny. (1) NotesJan Patoka Our national program. Prague 1990. p.9