Transactional and Transformational Leadership

Harry works in a coal mine laboratory. At the start of each shift, Harry checks the work book which his supervisor completes, where clear instructions are given as to what task is required. Generally each task listed is the same each shift, and every task has a written procedure that must be followed in order to meet Quality Assurance Standards. At the end of each shift, Harry completes his shift report which is generally the same too. Harry has worked here for 25 years under the same supervisor. He knows the work isn’t stimulating but it pays well.The supervisor is always happy with Harry because he completes the tasks that are set, and never deviates from what is expected. Harry’s supervisor is a transactional leader – a rule follower who likes procedures with no deviations and expects nothing more than those written in the work book. Carly is a new employee at the laboratory. At the start of each shift she too checks the work book in hope that maybe something new or contrary to the norm has been written. Most days she will look for something extra to do but is often reprimanded for doing something that the next shift would do.Carly detests the supervisor, wishing the supervisor offered more. Carly dreams of a supervisor who is motivational, encouraging, one who appreciates an employee who goes above and beyond what is required and would appreciate suggested improvements to age old methods. Carly dreams of a transformational leader to provide inspiration, charisma, vision and promote intelligent thinking to an otherwise mundane regulated workplace. So what is transactional and transformational leadership and what can be expected from each style?The transactional leader works with the present cultural work environment within their organisation, following existing rules, procedures, expected outcomes and operating norms (Lindgreen, A et al. 2009). They have an exchange relationship (Erkutlu 2008) with their followers/subordinates/employees, where guidance and motivation is given to ‘their followers in the direction of established goals by clarifying role and task requirements’ (Robbins et al. 2011, p. 342). It can take the form of contingent reward, management by exception (active and passive) and laissez-faire (Xirasagar 2008).Contingent reward refers to an exchange of rewards (whether verbal or tangible) for effort and good performance (Xirasagar 2008). Management by exception (active) is taking corrective action when a follower deviates from established rules and standards (Robbins et al. 2011). Management by exception (passive) is intervention taken by the transactional leader ‘only if standards are not met’ (Robbins et al. 2011, p. 342). A transactional leader of laissez-faire character is one who ‘abdicates responsibility’ and ‘avoids making decisions’ (Robbins et al. 2011, p. 342).As transactional leadership focuses on established norms and protocols, and â₠¬Ëœresults in expected outcomes’ (Erkutlu 2008, p. 711), followers will not extend themselves by going ‘above and beyond the call of duty’ (Robbins et al. 2011, p. 343). In comparison, the transformational leader is ‘capable of having a profound and extraordinary effect on followers’ (Robbins et al. 2011, p. 342) through their charismatic, visionary, inspirational, intellectually stimulating characteristics and their concern for their followers (Erkutlu 2008). They are able to inspire their followers to rise above their own self-interests.Transformational leadership consists of four sub-constructs (individualised consideration, intellectual stimulation, inspirational motivation, idealised influence) which transformational leaders can use to invoke behaviour of followers that exceeds expectations ‘for the sake of the organisation’ (Robbins et al. 2011, p. 343). Individualised consideration is displayed to the follower by ‘giving per sonal attention’ (Robbins et al. 2011, p. 342) to their development needs, support and coaching (Erkutlu 2008). Intellectual stimulation ‘promotes intelligence, rationality and careful problem solving’ (Robbins et al. 2011, p. 342).Transformational leaders are able to demonstrate idealised influence by providing vision and a sense of mission, instilling pride and gaining respect and trust (Robbins et al. 2011) along with inspirational motivation by communicating ‘high expectations’ (Robbins et al. 2011, p. 342). Although a distinction between the two could be categorised as a difference in leadership flexibility, Robbins et al. (2011) maintains that each leadership style does not actually oppose the other; rather transformational leadership builds upon transactional leadership where levels of follower effort and performance exceed that of transactional leadership alone.However each style of leadership has its own individual strengths and weaknesses. Transformational leadership appears to be heralded as the superior leadership style; although transactional leadership does have its strengths. As ‘transactional leadership results in expected outcomes’ (Erkutlu 2008, p. 711), it is effective in organisations where the desired outcome is measured against ‘clear and precise financial measures, such as revenues per customer segment or the dollar volume of cross-selling’ (Lindgreen et al.2009, p. 26).Research conducted by Liu et al. (2011) has found that in occupations of low emotional labour, transactional leadership has made a positive contribution to team innovation. Whilst Wells & Peachey (2011, p. 5) have found that there is a negative relationship ‘between transactional leadership and voluntary organizational turnover intentions’. The application of equity theory’s procedural justice (‘the perceived fairness of the process used to determine the distribution of rewards’ (R obbins et al. 2011, p.191) and distributive justice (‘perceived fairness of the amount and allocation of rewards among individuals’ (Robbins et al. 2011, p. 191) may explain this negative relationship (Wells & Peachey 2011). Conversely, transactional leadership is not without its weaknesses.Subordinates of transactional leaders may feel a lower sense of organisation commitment and job satisfaction or commit sabotage against the organisation (Erkutlu 2008). As transactional leadership relies upon defined outcomes with leaders possibly dealing with deviations from the norm ‘with harsh criticisms’ (Liu et al.2010, p. 284), subordinate performance beyond what the leader has requested should not be expected; nor the discovery of new methods of problem solving as subordinates continue using tried and tested solutions ‘for fear of reproach’ (Liu et al. 2010, p. 284).Innovation amongst employees employed in high emotional labour positions is also likel y to be depressed under a transactional leader (Liu et al. 2010). Transactional leadership doesn’t allow for followers’ self-actualisation needs to be met; therefore followers may not reach their full ‘potential and self-fulfilment’ (Robbins et al.2011, p. 177).Where transactional leadership has clear weaknesses in respect of followers performance, transformational leadership builds upon this and bolsters followers’ willingness to perform above what is required. Transformational leadership can be thought of what transactional leadership is not. Transformational leaders are acutely aware of the organisations present culture but have a definite vision for the future. They enable this vision by changing the fundamental ‘values, goals, and aspirations of followers’ (Lindgreen et al. 2009, p.15) as the followers embrace the leader’s values.The result is that the followers perform their respective duties not because they expect to be r ewarded, but because it is in agreement with their new found values (Lindgreen et al. 2009). By strategically using positive emotions, the leader is able to encourage ‘optimism and positive approaches to group tasks’ (Mitchell & Boyle 2009, p. 463). Followers of transformational leadership experience heightened motivation through their leaders’ inspirational motivation and individualised consideration.Mitchell & Boyle’s (2009, p.462) research states that this ‘increases their cognitive flexibility to accept new ideas and comments from others’. Transformational leadership has proven advantageous where customer relationship development is important, for example formal customer introductions and personal selling (Lindgreen et al. 2009). Research conducted by Camps & Rodriguez (2011) established that employees working under a transformational leader within an organisation that fostered employee learning and skill improvement did not drive the foll ower to seek employment elsewhere because of their increased skill set.‘On the contrary, they see this as a commitment to the employer that has trusted and invested in them’ (Camps & Rodriguez 2011, p. 437). Although flaunted as the preferred leadership style in comparison to transactional leadership, there are weaknesses of transformational leadership. The charismatic elements of transformational leaders are difficult to reproduce if not naturally present in the personality of the leader. Therefore, organisations seeking applicants to lead in a transformational fashion are instantly subjected to a limited pool of suitable applicants (Muijs 2011).Even when the applicant is of strong transformational personality, a poor organisation fit will fail the applicant. So too will organisational structures that impede ‘the extent to which leaders can be truly transformational’ (Muijs 2011, p. 50). Over zealous transformational leaders can also incite passive resista nce from subordinates. In this situation, the subordinates will simply wait for the leader to ‘move on’ (Muijs 2011, p. 51). This type of resistance is prevalent in organisations that have ‘rapid management turnover’ (Muijs 2011, p.51).Transactional and transformational leadership are two contemporary styles of leadership that have their own strengths and weaknesses. Transactional leadership focuses on providing followers clarified tasks requirements in order to achieve desired outcomes, whereas transformational leadership involves the ability of the leader to motivate, inspire, influence and consider their followers in order for the follower to take on the leader’s vision and perform above and beyond what is expected.Transactional leadership is effective in organisations where the desired outcome is definitive however is not conductive in promoting innovation amongst high emotional labour employees or allowing for self-actualisation needs to be met. Transformational leadership is effective in empowering followers and producing results such as employees performing above and beyond what is required. However it can be overbearing for employees who have not embraced transformational leadership exercising passive resistance to such a contemporary style of leadership.

Twitter Case Analysis

To the average technologically advanced American, Twitter is one of the most visited social media sites. From a popularity contest standpoint, Twitter would be amongst the top winners; however, when evaluating Twitter from a business analytical aspect it might not be a lucrative business venture. The attractive attribute to Twitter Inc. is the fact the sites does not make any of its users pay. Twitter is designed to allow users to voice multiple thoughts, ideas, or share different information amongst the site’s visitor.Unlike Facebook, Twitters does not have multi-million dollar corporations using the site on a regular basis to market more potential users. Therefore, with a low revenue base and poor strategic development implementation plan it’s going to be hard for Twitter Inc. to grow into a lucrative corporate investment. From a consultant standpoint, many business analyses would characterize Twitter Inc. as a â€Å"dog†. A dog is considered to be a manâ€℠¢s best friend, however form a business outlook it could be the indication that a business is in their final stages of existence.When a product is evaluated as being a dog most business experts would describe the company as have a low or staggered growth rate and yielding no profits. Twitter has documented that it does not have enough money many times to meet the site’s operation cost. Many experts believe that Twitter needs to expand the company in order to see some financial gain. The only problem with expanding the company is most investors need some form of a positive indicator that they are going to get their money back along with interest. From an explicit view, why should money be invested in Twitter? Read also Twitter Case StudyNearly every expert has come to the same conclusion that a social media site is a risky investment. Primarily, this investment is risky because consumer taste change, and social media sites has a previous trend of not being in existence more than five to seven years. Twitter consumer base is narrow, and the differentiation of the market sector would just add the list of difficulties the company is currently trying to solve. Twitter has been segmented since the creation of the company; they tend to have a consumer base in the age group of 13 to 35 years of age. The age group of 13 to 35 tend to spend the most money, owever this consumer base taste tend to be very inconsistent. Twitter is experiencing a maturity phase. In the maturity phase, there is little growth and the profit margin has reached its highest peak. If present circumstances are any forecast of the future, Twitter Inc. is in the early portion of the declining stage. In the declining stage ther e is no growth and the company spread sheet starts to show the company in operating in the red or negative. My recommendation for Twitter is quite simple. Twitter Inc. needs to restructure their company and marketing scheme.They need to market the site for corporations to think it is worth the investment to advertise. Twitter need to find sponsors to give financial support to a new site design, better advertisement, and also creating partnerships. Twitter Inc. needs to reposition itself to look more like a corporate media site and not a site for teens to release trash gossip. In the segmentation of the market, Twitter should segment the market for mature users and teens. In the segmentation they may have one side that focus on corporate sponsors and the other side should focus on alternative financial support.Additionally, it would be interesting to experiment with the merging of Twitter, Facebook, and Instagram. All of these social media sites would cover the different segmentation of the market, which would give them the advantages of reaching from the youngest to oldest of users. These social media sites would allow users to upload thoughts, ideas, statements, and pictures to a single site. From a financial standpoint, there would be a large revenue base because of advertisement and sponsors trying to penetrate this lucrative market.Contrastingly, the only set back is the division of power and how would the profits be allocated in the new company corporate structure. Twitter has the fundamental basis of being an enjoyable, yet profitable company to own. However, Twitter needs to start making decisions that promotes growth and look to attract corporations to advertise on their site. Its time for Twitter to move on the matrix from a â€Å"dog† to a â€Å"cash cow†, and they will find there balance sheets doing more than breaking even. The segmentation and differentiation of markets will also help them find various area of potential success.

Modern Art and Postmodern Art Thesis Example | Topics and Well Written Essays - 2750 words

Modern Art and Postmodern Art - Thesis Example The paper "Modern Art and Postmodern Art" presents different styles of the modern and postmodern era. The following paper will outline post modernism and modernism in art through an argument that claims post modernism art captures styles from past periods and mixes them in a way which ignores their original use and redefines their use. In relation to visual arts, a work of art refers to physical two dimensional or three dimensional objects that are professionally established to fulfill a primarily aesthetic function. An artist’s â€Å"body of work† may also be considered as a work of art. The term is very popular in art galleries, museums, cultural heritage curators by the interested community. Objects that document conceptual art works but are not necessarily accepted by artistic conventions may also be classified as art objects. Visual arts can be referred to as art practices that make works that are naturally graphic. This may include ceramics, drawings, painting, sc ulptures, printmaking, design, crafts, as well as modern visual arts, such as photography, film making and architecture. Included within visual arts are the applied arts, such as interior design, graphic design, fashion design and industrial design, as well as decorative art. There exists a growing tendency of some regions of the world to increase the privilege of painting and sculpture. In the Western and East Asian culture, painting has been seen as portraying, to a very high degree, the imagination of an artist. According to the Chinese, scholar painting was the most highly valued style of portraying art. What makes an art work influential? The following paper will provide an analysis of various works of art and how they have developed over time to serve their purpose. Every generation is outlined by imagery. Possibly, the nineties was the grime association for the present generation. For the eighties, the iconic figure of Madonna led the generation from its grim point. For every century, there is an incidence that describes a generation and for each occasion, there is a picture that catches the moment. Such artworks noticed by the generations that have experienced hardships make artworks inspiring and influential. No individual ought to be immune from disapproval. As a result, works of art are not even the countless masters of art world, they are human beings. Artists have to treat their artworks as they look at acclaimed workings of prodigy made by artistes far skilled than we are. Connections between the various

Same-Sex Marriage Essay Example | Topics and Well Written Essays - 750 words

Same-Sex Marriage - Essay Example There is no logical or scientific basis for a constitutional amendment to forever constrain the definition of marriage by preempting state power in the area. As a preliminary matter, there exists some persuasive evidence in support of alleged biological causes of sexual orientation, some less persuasive evidence for various environmental or psychosocial causes of sexual orientation, and some unsubstantiated data suggesting the existence of a" gay gene" designated the Xq28 area of the X chromosome for males. That the evidence is not precise does not negate the fact that, as noted by Crooks & Baur, sexual orientation runs more frequently in certain families, that prenatal hormone levels affect certain features of fetal masculinazation and feminization, and that sexual orientation is often formed prior to school. It would be more accurate to suggest that we only understand sexual orientation partially rather than to state that we understand it perfectly as a voluntary choice. The former qualification is supported by the empirical data whereas the latter absolutism is simply false. In the final analysis, the data is at best speculative; none theless, public policy makers, including George W. Bush, ought to assess such divergent findings holistically in order to find out which conclusion is more probable. Public figures must acknowledge in this context that people are, to some extant, born with a certain sexual orientation; that these sexual orientations may differ in degree or change throughout the life span does not diminish the significance of the underlying predispositions. It is more probable than not that predispositions exist, that sexual orientation is not a question of pure choice, and that public policy should treat people as they are rather than how some people wish or imagine them to be. If this were not enough, the public policy debate is also complicated by the fact that public opinion also varies among and between people with different sexual orientations. As noted most prominently in separate studies conducted by Kinsey and the National Health and Social Life Survey, categorizing an individual's sexual orientation precisely is nearly impossible (Crooks & Baur, 2005). Sexual exclusivity, for both males and females, is comparatively rare; furthermore, even a bisexual orientation is characterized more by degrees than by a firm commitment to the orientation. The evidence simply does not establish any firm basis for treating homosexuals or bisexuals as a distinct type of people; absent such a legitimate or verifiable distinction, there is no overwhelming logical basis for classifying people as exclusively homosexual, bisexual, or heterosexual. Arguments, therefore, which deny the need for same-sex marriages by pointing out that only a small percentage of the populatio n will be affected are oversimplifying the truer demographic realities. When one accounts for the four different types of bisexuality, in addition to narrower notions of exclusive homosexuality, the number of people affected or excluded from the marital institution increases substantially. The fact is that somewhere

Japans Expansionism in Asia Research Paper Example | Topics and Well Written Essays - 2500 words

Japans Expansionism in Asia - Research Paper Example Poring over Japan’s adversarial history in the late 19th and first half of the 20th century it is easily discernible that the sole incentive for the nation’s aggressive expansionism policy was its unquenchable thirst for natural resources. Japan’s seemingly interminable drive to conquer Asian colonies was clearly spurred by its three nationalistic campaigns namely, modernization, industrialization and an imperialistic militarism, which required an infinite source of natural resources to succeed. Late in the 19th century, Japan which was undergoing rapid industrialization and modernization realized that it needed to simulate Western nations to achieve significant success in its developing mainland1. The nation required a blend of two key drivers of Western economies to surge its economic aspirations; technology and capitalism. However, for Japan with its limited natural resources, capitalism dictated colonialism in order to furnish its needs for raw materials2. The country was further influenced into an imperialistic stance by its relatively hostile neighborhood featuring Russia and China and its inherent vulnerability considering its location3. The nation thus had no choice but to adopt an antagonistic policy for its neighbors. This policy dictated that the nation had to establish a palpable military to establish itself as one of the powers in Asia if not the sole power. The Japanese military evolved at a rapid pace just like its industries and added its materials’ demands to the already choked Japanese natural resource needs.

Euthanasia should be illegal Research Paper Example | Topics and Well Written Essays - 1500 words

Euthanasia should be illegal - Research Paper Example On the other hand, voluntary euthanasia is one which includes the consent of the patient while involuntary euthanasia does not include the consent of the patients because they are not in a position to make any credible decision (Kon 459). Lastly, involuntary euthanasia occurs when a person requests not to be killed only to end up being killed. This paper will give reasons why it’s immoral for the physicians to assist in suicide. According to the constitution of United States, every citizen has the right to live. The constitution also states clearly that there is no one who has the right to take the life of the other. As a result, it’s illegal and unethical for any person to decide if the other person will live or not. With the increasing stress levels in the world, making such a move to be legal will lead to increased cases of euthanasia (Pereira 1075). Many physicians will be faced with many cases of voluntary euthanasia. It’s immoral for any physicians to help either in voluntary and involuntary euthanasia. Research indicates that when patients are in very intense pain, they are likely to take actions that are regrettable. As a result, voluntary euthanasia is an unethical way of giving a person who is not of sound mind an opportunity to make a critical decision about his existence. Allowing physician assisted suicide will increase cases of negligence in our hospitals. Currently, the number of negligence cases in the health facilities has increased tremendously. As a result, when physicians are given the ability to terminate the lives of patients suffering from painful and terminal diseases, they will not put any effort to prolong the lives of these people. Instead, they will just be administering lethal drugs to such patients in order to end their lives. Therefore, they will get an escape route, an aspect that will reduce their levels

Discussion Board Criminal Justice Essay Example | Topics and Well Written Essays - 750 words

Discussion Board Criminal Justice - Essay Example Law officers are known to lie under some pretext during an investigation to elicit information. The psychology of the criminals, the mandate of the Supreme Court, and the totality of the circumstance surrounding a case allows an officer to use psychic methods to bring forth revelations to solve cases. Officers in the process of interrogation can play this card if only to get valuable information from hardcore criminals. Rarely will any criminal openly declare his guilt in an interrogation unless he believes that the odds against him beating the case are overwhelming. Officers find themselves staring at an uncompromising, non-committal criminal in most cases. "If you can't beat them, join them" is a familiar phrase that most of us know. This is precisely what these officers in uniform do. Lie to a criminal, utilizing deception as a tool, to make it appear that there is evidence against the criminal to prove his involvement. This has a telling effect on the criminal. "A confession which is the product of an essentially free and unconstrained choice by its maker may be used as evidence to establish the guilt of the defendant in court. FSM v. Jonathan, 2 FSM Interim. 189,194 (Kos. 1986) Although questioning of witnesses and suspects is a necessary tool for the effective enforcement of criminal law, courts have recognized that there is an unbroken line from physical brutality to more subtle police use of deception, intimidation and manipulation, and that vigilance is required. FSM v. Jonathan, 2 FSM Interim. 189,195 (Kos. 1986) When a defendant has expressed a wish to meet with counsel before further questioning, questioning must cease at once. Any attempt by police officers to ignore or override the defendant's wish, or to dissuade him from exercising his right, violates 12 F.S.M.C. 218. FSM v. Edward, 3 FSM Interim. 224, 235 (Pon. 1987) Now consider these: Where a police officer promised to reduce charges if the defendant cooperated but there was no other showing of police intimidation or manipulation and the defendant had recognized that his guilt was apparent, the confession was not induced by the promises but instead was a voluntary response to the futility of carrying the deceit further. FSM v. Jonathan, 2 FSM Interim. 189,198 (Kos. 1986) In determining whether a defendant's statement to police is "voluntary," consistent with the due process requirements of the Constitution, courts should consider the totality of the surrounding circumstances. Courts review the actual circumstances surrounding confession and attempt to assess the psychological impact on the accused of those circum stances. FSM v. Edward, 3 FSM Interim. 224, 238 (Pon. 1987)" (Criminal Law and Procedure-Interrogation and Confession, zdigest.4.pdf referred on

Music in the 1950 the artist Nat king Cole Essay

Music in the 1950 the artist Nat king Cole - Essay Example Beginning with the talent as a jazz pianist, Nat King Cole realized the early signs of increasing determination and love towards music at age four when his mother taught him how to play the organ. Eventually, this motivation enhanced his initial jazz performances which further led him to consider interests on rhythms both gospel and classical in nature. With this extent of capability and admiration, he had all the more developed a prominent edge as a jazz-labeled artist, performing in a range of jamming sessions at clubs and events as in the Jazz at the Philharmonic concerts, then creating a rather exhilarating impact on other big bands of the black culture through his personal concept of the jazz trio during the 1930s. As popularized by the trio composed of Nat himself as the pianist leading the combo, guitarist Oscar Moore, and double bassist Wesley Prince, this groundbreaking setup with piano, guitar, and bass greatly persuaded Cole’s moderate contemporaries and musicians o f the modern times to align their attitude in music with his fashion. Evidently, Nat King Cole’s innovation with jazz in this manner may be recognized to bear striking semblances with the styles of blues pianists Ray Charles and Charles Brown, as well as in the compositions of Art Tatum, Oscar Peterson, and Ahmad Jamal among those in major labels. In the short-lived melodic history of his making, Nat King Cole had been able to keep himself dynamic, moving from place to place as he played piano over jazz bars, on Broadway domains that made him accomplish pieces for Eubie Blake’s musical ‘Shuffle Along’ in particular, and in the other venues that witnessed his way with music, giving him followers out of the regular audience and certain artists alike. It did not take a great deal of perseverance to establish his ample influence given the frequency of his band’s live performances and the number of recorded radio transcriptions and locations where the ty pe of jazz rendered by Nat King Cole served a major stimulation for the public prone to romantic mood. On shifting to do vocals, however, he became obliged to go by the standards of the mainstream which at first received unfavorable remarks from both his fans and jazz critics yet this move flourished Cole’s singing career and in 1943, ‘Straighten Up and Fly Right’ with a gospel theme turned out to be his first vocal hit. After obtaining a sustainable market for this folk-based song, Nat King Cole was later inspired to attempt crossing grounds with rock and roll, a simultaneously ensuing demand at the time, which truly was a huge transformation from the origins his true identity was attached. By maintaining a pop-oriented status, Nat consequently sought the need to replace his traditional jazz trio setup by a new approach, often with string accompaniment. Thus, when some of the songs notched at the pop chart like ‘Those Lazy-Hazy-Crazy Days of Summer’ at number six, the inevitable direction to popularity built in him an icon that most people looked up to during the early stage of rock and roll. Of the songs that captivated rare appreciation of the public, it is specially notable to pay tribute to Cole’s authentic and outstandingly beautiful rendition of the classic ‘Mona Lisa’ which ranked first for over two months in the 1950’

Educational relevance of Vygotsky's theory Essay

Educational relevance of Vygotsky's theory - Essay Example The main idea in Vygotskys theory is his principle that biological and cultural development does not take place in isolation. Vygotsky held that development is a procedure that has to be examined, instead of a product to be attained (Social Development Theory, No date). This theory acknowledged that individuals learn through social interactions and their culture. They gain knowledge through dialogues in which individuals socially interact and communicate with others to discover the cultural values of the society. Vygotsky also believed that human activities take place in cultural settings and cannot be understood separately from these settings (Woolfolk, 2004). The second belief in Vygotsky’s perspective is that all superior mental functions begin in social activity, that is, the real formation of relations among humans. Development entails mental processes initially on the social level, among individuals, and after that on the individual basis, within the child. Thus, through these social interactions, an individual moves in the direction of more individualized thought process. The co-constructed progression consists of individuals interacting through common activities, typically to resolve a problem. When the child gets assistance through this process, he or she may be able to use enhanced strategies in the future, should a similar difficulty occur. The co-constructed dialogues directs to internalization, which then results in independent though process (Social Development Theory, No date). The development of language is considered to be the chief aspect of Vygotskys sociocultural theory. The language of a certain group of people signifies their cultural beliefs and value system. This suggests that children learn language in a similar fashion as learning of cognitive skills. Vygotsky affirms that individuals might have fabricated prejudices, regulations, and restrictions about language that limit the amount of possibilities

Federal programs Essay Example for Free

Federal programs Essay Throughout the twentieth century, Congress has established a great number of federal programs administered by agencies within the Executive Branch. Through this process of a wide-ranging allocation of authority to the executive Branch, Congress has assisted in creating a massive Federal Bureaucracy. The relationship of Congress to the Executive Branch today must therefore be seen in terms of its relation to this Bureaucracy, as well as its relation to the Presidency. In order to gain some control over the operations of the various agencies which had been established within the Executive Branch, in 1946 congress began to develop a sequence of configurations and procedures designed to manage the Administration. This process was also known as congressional oversight. There are several methods through which congressional misunderstanding operations take place: the committee process, congressional administrative offices, casework, as well as a number of administrative practices. Where the congressional oversight functions take place, there are three types of committees: authorizations committees, appropriations committees, and governmental operations committees. The first type of committee is the functional committee which initially establishes or authorizes the program or agency. In the case of a military program, this would be the Armed Services Committees in both chambers. ‘In the case of an urban program, this would be the Banking, Finance and Urban Affairs Committee in the House and the Banking, Housing and Urban Affairs Committee in the Senate. Similarly, each program area within the Federal Bureaucracy is related to at least one specific substantive standing committee in each chamber of Congress. ’ (Issa, 2011) In attempting to follow the oversight activities through these authorization committees, a number of complications are often encountered. One of these is the result from the fact that a particular governmental agency may fall within the authority of several different practical committees or subcommittees. As a result, the agency may play ‘one committee or subcommittee against the other in order to achieve those results in Congress which tend to benefit the agency the most. (Office of The Law Revision Counsel, 2012) Another problem is that a committee which establishes a program is often too involved with the outcome of its own efforts to be willing to investigate adequately the operations of the program it has initiated. One of the most substantial places where an amount of oversight activity takes place is in the appropriations process. The budget for an agency must be approved anew each year. ’ One might assume that this yearly appropriations process would lead to a careful annual inspection of the budgets of all the various governmental agencies. (Issa, 2011) This is not the case. The federal budget is so great and compound that it is impossible to consider carefully the budget of each agency and program on a year-to-year basis. What happens instead is that budgets are often routinely approved from year to year with general reviews only occurring sporadically. In addition, many agencies develop quite close relationships with the subcommittees of the Appropriations Committees which spe cifically deal with their agency. These agencies are therefore often able to abstract some special favors from these particular appropriations subcommittees. The Senate Committee on Governmental Affairs and the House Committee on Governmental Reform were initially established to manage congressional concern over governmental processes. Thus, many see these committees as an ideal place for maintaining congressional observation over the activities of the vast Bureaucracy located within the Executive Branch. However, because of jurisdictional differences and because of the hesitancy of most representatives and senators to provide for satisfactory independent oversight activities, the efforts of these governmental operations committees have been quite restricted. The three administrative offices within Congress are used to some extent in the congressional oversight process. The General Accounting Office, The GAO has the accountability, not simply for performing accounting audits, but also for judging how various programs are being managed. In other words, the GAO often performs the task of program assessment. The GAO plays a significant role in congressional oversight. The Congressional Research Service, while preparing reports and studies to assist members of Congress, the CRS sometimes includes some information on the activities and routines of various governmental agencies. This is another important source of oversight information for members of Congress. The Congressional Budget Office gathers information on the budgets of the various governmental agencies and to report on new budgetary requirements and propositions that are made through the Executive Branchs Office of Management and Budget. Budgetary information is an extremely important source of data upon which the various congressional committees can judge the effectiveness of specific governmental programs. Granting, the information gathered by the CBO may seem to permit for substantial congressional oversight, the fact is that it is the agencies that often use this informational link for their own purposes in pursuing their requests for additional funding directly to the congressional committee, instead of directing all their communications through the OMB. This short circuits the use of the OMB as one of the Presidents management tools. Efficiency, from an overall standpoint, we can see that these three congressional offices. The General Accounting Office, the Congressional Research Services, and the Congressional Budget Office combined with the staffs of individual congresspersons and senators and the staffs of congressional committees are able to supply our national legislators with vast amounts of information and evaluations of governmental activities. ‘In fact, the United States Congress has available to it one of the most extensive research staffs of any national legislature in the world. ’ (Issa, 2011) Nevertheless, the availability of information and study alone is not sufficient for effective congressional oversight. The desire to follow through on this available information is another necessary ingredient and it is this ingredient which is often lacking. Many times congressional oversight is limited by the worries of various congressional committees and subcommittees over their particular jurisdictions and in a substantial number of instances, the burdens of organized special interests also interfere with the ability or wishes of members of Congress to significantly oversee governmental operations. Aside from these problems, there are also the boundaries of time. Congresspersons are loaded with extremely dense schedules. They have a large number of often conflicting responsibilities to perform. Representatives and senators must therefore place priorities on the use of their time. Often oversight activities lose in this shamble of priorities to legislative activities, to the creation of new programs to deal with current problems, and to casework concerns. Representatives and senators, themselves, do not usually become directly involved in much casework or fundamental services. It is their staff that deals with these matters. However, representatives and senators are usually informed by their staffs of many of these problems, and it is through these specific interactions that these legislators often get the most intense impression as to the effectiveness of many governmental programs. Casework thus provides an important source of direct, specific information which proves very useful in congressional oversight activities. Congress has also passed some major reforms and reconnoitered a number of major legislative techniques, many of which have had the effect of enlightening congressional oversight. Sunshine Laws. During the 1970s, Congress attempted to open up many facets of governmental operations to the general public. This was done through the Freedom of Information Act and the Government in Sunshine Act. By making information more broadly available to the public, these acts also increase the amount of information available to Congress. The Congressional Veto. Very often Congress passes rather broad pieces of legislation. It is then up to specific agencies to fill in the details of these laws, both with regard to the building of governmental agencies and the processes which they follow. One might note for example that while Congress passes general tax laws, the details of the regulations regarding the payment of federal taxes is to be found not in the tax law itself but rather in the Internal Revenue Code which is developed by the Internal Revenue Service, which is an executive agency. The problem that were presented by the executive agencies developing a great many regulations or codes is that the only way Congress is able to affect these details is through the passage of new legislative acts. As we have seen, this is often a burdensome and prolonged process. In order to avoid this, Congress now writes into some authorization bills requirements for a congressional veto. According to this procedure, when an agency disseminates rules filling in the details of congressional legislation, Congress automatically has the power within a specific time period to veto some of these rules and to demand that the agency fill in the details in a different way. The important thing is that Congress can do this without having to go through the process of passing a new law. Although this procedure is rarely used, it does offer the prospective for a far greater legislative control over the procedures by which the Bureaucracy operates. Sunset Legislation. In starting governmental programs or agencies, Congress usually sets no time limit on the functioning of the program or agency. Since the 1970s, a practice developed by which Congress authorizes the existence of a program or agency for only a inadequate amount of time. In other words, Congress specifies a date by which the agency or program will conclude to function. In order for the agency to continue its operations after that time, a new bill must be passed allowing its continued existence for another specified period of time. This practice is obviously intended to avert the continued existence of agencies or programs which no longer meet a legitimate need or which fail to meet a legitimate need effectively. A dissimilarity on sunset legislation is the procedure of annual authorization. According to this procedure, the continued existence of governmental agency must be approved on a year-to-year basis. While this practice obviously creates tremendous difficulties in the ability of such an agency to engage in long-term planning, it does suggestively increase the potential effectiveness of congressional control. ‘Zero Based Budgeting (ZBB). Zero Based Budgeting is a technique through which administrators must carefully justify their entire agencies budgets. Zero based budgeting requires a continual top-to-bottom assessment of all agencies programs designed to insure their cost effectiveness. ’ (Issa, 2011) We can see that many structures and techniques have been developed to allow Congress to be more effective in its oversight activities. However, jurisdictional disputes and pressures from various well organized special interests continue to prevent these new techniques and sources of information from being used effectively. In many occurrences, the actual nature and effect of government policy depends less on the actions of our elected officials than it does on the activities of non-elected bureaucrats who often remain totally immune from the pressures of the general publicalthough not necessarily from those of well-organized special interests. One of the major political issues determining our national future is the question of how well our government is able to represent effectively the needs and desires of the American people. As we have noted, the role of Congress as a representative of the people was one of the most important functions of this first branch of government envisioned by the Founders when they drafted the Constitution. However, the many new needs which our national government has had to meet in this century have placed this role of representation under great stress.

Presence Of Evil Shows God Doesnt Exist

Presence Of Evil Shows God Doesnt Exist Evil can be defined as anything that is painful, malicious or disastrous. There is much evil in the world, which can be split into either natural or moral evil. Natural evil refers to suffering caused by natural disasters whereas moral evil refers to suffering which has been caused by human selfishness.  [1]  I believe that the existence of these evils in the world disproves the existence of God. These evils would not exist if there was a perfectly good, all loving, omnipotent, omniscient God as He would want to prevent all evils and would be able to do so. In this essay I am going to look at the logical problem of evil, looking at the arguments put forward by Epicurus, Hume and Aquinas. I will also look at the evidential problem of evil, in particular the arguments put forward by William L. Rowe and Paul Draper which support the claim that the existence of evil disproves the existence of God. I will also look at Augustines and Irenaues theodicies against these arguments. Then fi nally I will look at problems with these theodicies and why I believe the existence of evil as well as the existence of God is incompatible. The logical problem of evil put forward by Epicurus states that evil could not exist if god was all loving and omnipotent. Thus, because there is evil in the world God cannot exist. He argues that an all loving god would not tolerate the suffering of his creatures therefore he would have created a world in which this suffering does not exist in the first place, or would step in to prevent it.  [2]  Similarly if god was omnipotent he would have been able to create a universe without evil and suffering to begin with. Therefore, the existence of evil in the world supports the claim that either God does not exist, or that he is either not omnipotent or not all loving. Humes similarly argued that the existence of evil in the world meant that God would need to be either not omnipotent or not all-loving. As it is not possible for God to be either of these things Humes concluded that God does not exist. Aquinas saw evil as the absence of good, or failure to achieve potential. In his book Summa Theologica, Aquinas states that the name of god means that He is infinite goodness. If, therefore God existed, there would be no evil discoverable; but there is evil in the world. Therefore God does not exist.  [3]  This argument is similar to that of Epicurus and Humes, stating that the existence of evil in the world contradicts the idea of an all loving, omniscient, omnipotent god. Thus again supporting my claim that the existence of God is incompatible with the existence of evil in the world. There is also the evidential problem of evil which contends known facts about evil as evidence against the existence of God.  [4]  William L. Rowe argued that there exist instances of intense suffering which an omnipotent, omniscient being could have prevented without thereby losing some greater good or permitting some evil equally bad or worse.  [5]  He then goes on to argue that such a God would want to prevent such suffering and would be able to do so and concludes that because this kind of suffering exists then God cannot. The existence of gratuitous evil in the world can similarly be used to disprove the existence of God according to Paul Draper. Evil which is without apparent reason or justification would not exist if God existed as He would not allow it. Therefore because there are cases where gratuitous evil can be said to exist God does not exist. Theodicies have been put forward in an attempt to justify the existence of God alongside the presence of evil in the world. Augustine argued that Gods creation was faultless and perfect and that evil came from within the world.  [6]  As an explanation for the existence of evil in the world Augustine blamed the fall of man from the Garden of Eden (Genesis 3). Disobeying God in the Garden of Eden is seen by Augustine as a moral evil leading to the evil within the world. The cause of this is free will and the allowance of man to have control over their actions and freedom of choice, including the ability to choose evil instead of good. Thus Augustine argues that God is still all loving, omniscient and omnipotent therefore he allows us to have free will and it is our fault we choose to do moral evil. To take away our free will would be unloving as it would take away our ability to choose good and to love God. Natural evil, on the other hand, can be seen as a consequence of the dishar mony of nature brought about by the fall.  [7]   The presence of evil does not necessarily disprove the existence of God according to Irenaeus. In his theodicy, Irenaeus attempts to justify the existence of evil as a sign of Gods goodness. He claims that evil and suffering in the world are useful as a means of knowledge, vital for character-building and provide a predictable environment. It is claimed by Irenaeus that without the presence of evil these attributes would be unobtainable. Therefore an all loving, omniscient, omnipotent God has allowed for evil to exist as a means for humans to learn and ultimately reach perfection. Although providing a possible explanation of the existence of evil in a world created by an all loving, omniscient and omnipotent God, Augustines theodicy does have some problems. Firstly, the theory of natural selection could be seen to contradict the idea that the Garden of Eden existed in blissful ignorance as it relies upon the selfishness of creatures as vital to their survival.  [8]  Also, God must still be responsible for the evil that has come from within the world as he created it. An omniscient God would have been able to foresee the evil which would come about and have been able to prevent it. Augustine also claimed that we are all being punished for Eves actions in the Garden of Eden which contradicts the bible itself should the childrens teeth be set on edge because the Fathers have eaten sour grapes? (Jeremiah 31:27-34). The existence of hell also shows that God must have foreseen the need for punishment therefore showing that God cannot be all loving and that mank ind cannot be held fully responsible for the fall of man. Similarly, there are problems with Irenaeuss theodicy. The main issue with this theodicy is whether suffering and evil is really necessary in order to achieve the desired goals. Surely an all loving, omnipotent, omniscient God would be able to devise a way in which humans could learn and develop without the need for evil and suffering. It is also not in the nature of an all loving God to allow certain people to starve to death in order to provide the knowledge to others to feed them. I therefore do not believe that these theodocies provide a conclusive defence for the existence of evil alongside the existence of god in the world. In conclusion, throughout this essay I have attempted to prove why the existence of evil within the world shows us that God does not exist. By looking at the arguments of famous philosophers I have found evidence to support this claim. I have also looked at theodicies which disprove my argument and found possible errors with these arguments. I believe that the existence of an all loving, omniscient, omnipotent God is simply incompatible with the existence of evil. In order for evil to exist God cannot be all of these things, if God is not all of these things then he simply isnt God. Therefore God cannot exist. Although the existence of God and evil may not necessarily be logically and evidentially compatible, I believe that God is necessary for many people across the world to understand why evil and suffering occurs and to have someone to blame. Thus regardless of what evidence is available I dont think it would ever be completely possible to disprove the existence of God in its enti rety as believers would still come up with situations in which an all loving, omniscient, omnipotent God would allow for the existence of evil. Word Count: 1483

High Altitude Training :: Running Athletes Essays

High Altitude Training For the first mile of my daily run the cows are with me. They seem out of place along this road that winds through mountain pines, but in Arizona cows are everywhere, even at 7,000 feet. They watch incredulously with soft eyes as I run by. They stand as still as statues and only their heads move, slowly and almost imperceptibly, like the heads in paintings of long-dead relatives that gaze right at you, no matter where you stand in the room. I can’t tell if they approve of all this running activity; they are silent. No matter how far I decide to run each day, running that first mile is the hardest. I feel the same niggling pain under my ribs each time, and wonder how overnight I forgot how to run. Each day I tell myself that I must be going about this running thing all wrong. My shoes are old and probably not the right sort of shoes at all. I’m wearing cotton socks. I expect at any moment a van, driven by a member of the International Federation of Runners, will pull up beside me. A fleet of sleek runners wearing custom made running shoes and synthetic socks will pile out of the back of the van and issue a citation. Or they will grab me and drive off with a screech of tires, taking me to an interrogation room where they will seat me under a bare bulb and ask, â€Å"Just who do you think your are?† I look around uneasily. No vans. No running police. I guess I will have to keep running. I smirk at the cows, glad that I’m faster than someone. I came upon running by accident, when I was digging through a pile of magazines at my local used bookstore. I pulled out a copy of a running magazine that had a picture of a beautiful woman on it, a woman with a blond ponytail. She looked happy and carefree. I wanted to be her. My friend Ellyn looked over my shoulder and said casually, â€Å"Oh, Suzy Favor.

Epic of Beowulf Essay - A True Literary Epic -- Epic Beowulf essays

Beowulf : A True Literary Epic       The Adventures of Beowulf, a rousing Old English poem of man and monster, and perhaps the earliest European vernacular epic, is rightfully considered an epic for it possesses those features which characterize epic poetry.    For example, in epic poetry the central character has heroic or superhuman qualities. In The Adventures of Beowulf, the main character, a Geat warrior named Beowulf, possesses such qualities: â€Å"He was the strongest of men alive in that day, mighty and noble.†Ã‚   Upon spotting Beowulf approaching, the sea-guard of the Danes says, â€Å"Never have I seen a greater man on earth†¦Ã¢â‚¬ Ã‚   King Hrothgar of the Danes says of Beowulf, â€Å"Seafarers who took gifts to the Geats say that he has the strength of 30 men in his hand grip.† Beowulf chooses to fight Grendel by himself and without shield or weapons; previously the hero slew 9 sea monsters with his sword. And he is fully willing to sacrifice his very life for this: â€Å"†¦ I alone will fulfill the wish of your people †¦ or die in the foe’s grasp.† Beowulf consciously chooses to act in a superhuman manner: â€Å"I shall perform the deeds of a hero or I have passed my last day in t his mead hall.† Even Grendel recognizes the hero’s superior strength: â€Å"The criminal knew he had not met in this middle-earth another with such a grip.† Other warriors when thinking of Beowulf â€Å"would quickly compose a skillful tale in words.† Hrothgar refers to Beowulf as â€Å"the best of warriors.†Ã‚   The Danish queen Wealhtheow compliments after Grendel’s defeat, â€Å"You have earned forever the praise of men from near and far.† Hrothgar expounds on good warriors: â€Å"This is the best-born man – my friend Beowulf †¦ the best of warriors.† When the dragon burns the mead hall of the... ...eat among his kin,† â€Å"war-death,† â€Å"held the gift-seat,† â€Å"a feast to ravens,† â€Å"old and wise,† â€Å"fell down battle-pale,† â€Å"battle-sweat,† â€Å"war-chief,† â€Å"drew his battle-knife,† â€Å"on his death-bed,† â€Å"death held him fast,† â€Å"feared evil days,† etc.    The Adventures of Beowulf is a poem of such stature that it manifests many common characteristics of epic poetry; therefore, it can rightfully be classified as an epic poem in its own right.    BIBLIOGRAPHY    Clark, George. Beowulf. Boston: Twayne Publishers, 1990.    Fry, Donald K. â€Å"Introduction: The Artistry of Beowulf.† In TheBeowulf Poet, edited byDonald K. fry. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1968.    Robinson, Fred C. â€Å"Apposed Word Meanings and Religious Perspectives.† In Beowulf – Modern Critical Interpretations, edited by Harold Bloom. New York: Chelsea House Publishers, 1987.

Export Strategy Belgian Chocolate Factory

Table of contents Introduction 1? Presentation of the company 1. 1? History 1. 2? Philosophy 1. 3? Organization 1. 4? The company’s activities 1. 5? Activities concerned by the exportation 2? Macro economic analysis 2. 1? LE PEST C analysis 3? Export strategy 3. 1? The reasons of the company’s international opening 3. 2? The current exporting strategy 4? Export abilities 4. 1? The export diagnosis 4. 1. 1? The production tool 4. 1. 2? The finance 4. 1. 3? The products 4. 2? Analysis of the German market 4. 2. 1? The Four C framework 4. 2. 2? Satisfyer 5? Dolfin’s SWOT analysis 5. 1. 1? Explanations of Swot 6? Recommendations 6. 1? Competition on the German market 6. 2? Distribution problems 7? Conclusion 8? Bibliography 1? 2? 2? 2? 2? 3? 3? 5? 5? 7? 7? 8? 10? 10? 10? 10? 10? 11? 11? 13? 14? 14? 17? 17? 18? 19? 20? Introduction In this report, we have chosen to analyze Dolfin, a Belgian company that has been producing fullflavoured chocolate bars since 1989. We will be analysing the exports of Dolfin, which nowadays is exporting to 22 countries around the world. The purpose of this report is to make an export audit in order to check if the company meets the necessary requirements. The main objective of this report is to build a SWOT analysis regarding the export of the company in order to propose development strategies linked to it. In order to do so, we have divided our work into 5 parts: first an analysis of the company, secondly we will focus on the international environment of Dolfin. After that we will move on to its export strategy before developing its export abilities. Finally, we will analyse Dolfin’s management of international operations in order to conclude with recommendations. The country we have chosen to explore is Germany, firstly because it is one of the biggest consumers of chocolate in the world1, and secondly because recently Dolfin has faced some issues in order to export to this country. Besides, Germany is Dolfin’s main exporting country. PONTILLON, J. ,( coordinateur),Cacao et chocolat : production, utilisation, caracteristiques, Paris , Editions TEC et DOC, 1998, p25. 1 ? 1 1 Presentation of the company 1. 1 History Two Belgian brothers – Michael and Jean-Francois Poncelet – who decided to follow in their father’s footsteps, created Dolfin in 1989. Both of them grew up with a fascination for the process of making chocolate. 2 â€Å"Always bearing in mind this craftsman's approach, forcing the tool to meet the demands of quality, rather than the other way around, the sales have been rising steadily, amounting to 220 tonnes in the year 2000. The top-of-the-range bars and Neapolitan chocolate squares are now on offer in prestigious emporiums such as Selfridges in London, La Grande Epicerie in Paris, the KDW in Berlin and the Sony Plaza in Tokyo†. 3 1. 2 Philosophy4 For the master chocolate makers of Dolfin, chocolate is a passion. They dare to create the most unexpected combinations, to invent the subtlest harmonies, searching as a team for the finest ingredients selected from the best that nature offers. Their chocolate coverings are made of exclusive recipes, constant in quality and taste. Dolfin also offers a wide range of chocolate, from 32% cocoa in milk chocolate to 88% in the bitterest. Containing less sugar, less fat and more cocoa than traditional recipes, Dolfin’s products concentrate the nutritional and therapeutic qualities of chocolate. Simple and authentic, chocolate is stored naturally for a long time (one year without any preserving agent). 1. Organization Dolfin is a Belgian private limited company with a turnover of 3. 000. 000 â‚ ¬ and a net profit of 429. 237 â‚ ¬ in 20085. WORLD WIDE CHOCOLATE, Dolfin chocolates and chocolate bars, URL address: http://www. worldwidechocolate. com/shop_dolfin. html (viewed 16th November 2009). 3 Dolfin – Dark chocolate, URL address: http ://www. finedarkchocolate. com/Chocolate/Dolfin/index. asp (viewed 16th November 2009). 4 DOLFIN, Philosophie, URL address: http://dolfin. be/index. php? lang=En=philosophie (viewed the 16th November 2009).? 5 NATIONAL BANK OF BELGIUM, Comptes annuels en euro, 2008, 18p. , URL address : http://banquenationale. e/pub/ (viewed the 20th November 2009) 2 ? 2 Organization chart: General chocolates Company Holding Dolfin S. A. 5 Shareholders JJ. de Gruben Administration Finance Marketing R Production Purchase Quality Sales department 1 person 1 person 2 persons 12-15 pers. 1. 4 The company’s activities The main activities of the company are: – Gourmet squares with personalised packaging: The original activity of Dolfin is to make chocolate bars for companies with a personalised packaging in order to be used as gifts or as advertisement. Nowadays, even though this activity has decreased, it still represents 25% of the turnover. As a small company, Dolfin is more flexible and can offer tailor made products. – The Dolfin chocolate range offers chocolate bars of 30 and 70 grams, Gourmet squares, chocolate flakes and dark chocolate petals with flowers, Jacqmotte coffee chocolate bars. – Tohi brand: this new Dolfin’s brand created in September 2008, is organic certified (controlled by Certisys) and fair trade (controlled by Max Havelaar). 1. 5 Activities concerned by the exportation ? 3 – Dolfin chocolate bars are exported in more than 22 countries, often in specialised  « delicatessen  ». It is considered as fine chocolate, and it is sold in the most luxurious and prestigious place in trendsetter’s cities such as Paris (Lafayette), London, New York, Berlin†¦ – The Tohi brand is only exported in health food shops to make sure people trust the brand before selling it in other shops. ? 4 2 Macro economic analysis 2. 1 LE PEST C analysis In order to understand clearly the environment in which our organisation works, it’s important to make a â€Å"LE PEST C Analysis†. This one ensures Dolfin to adapt its strategy to each specific market taking account of the external environment. Legal aspects: There are 3 specific laws and norms: The HACCP norms in Belgium (â€Å"Hazard Analyses Critical Control Points†) regulate the quality of food industry products by preventing, managing and controlling the production chain6. The ISO 22000 â€Å"specifies requirements for a food safety management system where an organization in the food chain needs to demonstrate its ability to control food safety hazards in order to ensure that food is safe at the time of human consumption. †7 This norm is applicable to all organizations, regardless of the size, which are involved in any aspect of the food chain and want to implement systems that consistently provide safe products. European Directive: The labelling and the presentation of chocolate and cocoa products are regulated by the E. C (directive 2003/13/EC and 2000/36/EC). On a global view, pre-packed foodstuffs (to be delivered to the final consumers) must comply with compulsory standards on labelling and advertising. On the packaging must appear: – the name under which product is sold – a list of ingredients – the potential allergens – the durability date – the conditions for keeping – the place of origin FOULON L. , Hygiene et technologie de chocolaterie, Bruxelles, CERIA, syllabus, 2009-2010, p. International Organization for Standardization, URL address: http://www. iso. org/iso/catalogue_detail? csnumber=35466 (viewed the 02nd of November 2009). 8 Idem 7 6 ? 5 Each of these indications must be written in an easily understood language (official language of the country of marketing), especially for the chocolate or cocoa derivatives, we should also mention if there is a use of vegetable fats9. Ecological With the growing concern about the environment, Dolfin has to take into account various environmental pressures. For several years now, it decided to cut its greenhouse gasses emissions and has become the first neutral carbon chocolate factory in Belgium. Moreover, a lot of specific materials are now forbidden and companies have to adapt. Due to that, Dolfin has made contracts with some firms specialized in ecological packaging. Political The political stability and the good relationship between Belgium and Germany are crucial. Economical: Globally, Germans are scared of the inflation level10. The sector is dependent on cocoa which is quoted on the stock exchange market and very sensitive to speculation. Moreover, it’s a seasonal product and there is a slack period from March to June. Sociocultural: Here is a growing concern for several years with healthy food and obesity which can lead to a change in food habits and the need of specific products (less sugar, more cocoa). Technological For all new projects, Dolfin has to think about environmental pressures. Competitivity: The competition in the sector is tough. Dolfin is a mid-upscale product and have to compete with multinational companies and other upscale product. Furthermore, in this sector, the competition is all the more intensive as products can be easily imitated. After launched a new one, competitors can copy the recipe without difficulty. ?EUROPA, Etiquetage, presentation et publicite des denrees alimentaires, URL address : http://europa. eu/legislation_summaries/consumers/product_labelling_and_packaging/l21090_fr. htm, (viewed 1st November) 10 GERMAN CULTURE, Germany in the World Economy, URL address : http://www. germanculture. com. ua/library/facts/bl_germany_world_economy. htm (viewed on the 15th of November).? 9 ? 6 3 Export strategy 3. The reasons of the company’s international opening Dolfin didn’t really aspire to export in the beginning but it came out as a good solution. On the one hand, the brand (Dolfin and Tohi) can keep their own shops in Belgium in order to boost the sales and to improve the brand awareness among potential new customers. On the other hand, Dolfin can export its products on the international market, which appeared to be the best solution because Belgian chocolate has a worldwide good reputation abroad. The three main countries where Dolfin is exporting are: Germany, France and the United States of America. As explained before we have decided to focus on the German market. To understand the situation we will first have a look at the evolution and how they penetrated the market in 2001. In 2001, at the Ism fair (one of the most important fairs for chocolate makers) in Germany, German importers showed interest to import the company’s products. We could say that Dolfin did not really have a strategy ready for that. They decided to export in order to satisfy this demand. They started with 2 distributors: Feinkost (confectionery) and Suesswaren (delicatessen). They had exclusive contracts with these 2 distributors. By 2005, according to Nathalie Trachte, one of the administrators of Dolfin, the interest for quality food in Germany is increasing. This means they prefer to pay more for high quality chocolate bars than eating a huge quantity of bulk chocolate. By that time, Dolfin realised they had no commercial strategy in Germany and that they had very few market shares. In 2006, the turnover of the German exportations dropped off by 15%. The reasons are first, because both distributors became competitors; secondly, it was due to the increasing number of new chocolate products on the German market. 1 In 2008, despite the crisis, the price of raw materials and the cultural fear for inflation in Germany, the exportations remained at a certain level. Moreover specialised shops decided to focus on bestsellers like Dolfin. However, the turnover kept on decreasing. In 2009, because of the very long summer, the season started a bit later. 11 Belcolade Conference, Salon de Paris 2009 (14th – 18th October 2009) ? 7 Belgian export to Germany (code SH18-cacao)12 : (M â‚ ¬) Chocolate and Cocoa Total export 2002 202,87 2003 199,60 2004 217,878 2005 240,18 2006 249,03 2007 278,49 2008 281,42 9. 402,07 31. 067,38 34. 037,69 35. 271,04 38. 451,03 38. 727,10 42. 605,73 This graph demonstrates an evolution in the Belgian exports of chocolate and cacao towards Germany between 2002 and 2008. This represents an increase of about 38% in 6 years. This means that Dolfin is acting in a growing market and that there are still opportunities to seize. 3. 2 The current exporting strategy Dolfin started to rethink the way it was exporting to Germany. In 2007, they decided to use the 5 P’s theory: – Product: launching new products and combining new flavours. Price: the price is higher than other standard chocolates as they sell quality products. However, it is not as expensive as premium chocolate. They didn’t want to change the price as they consider it as a fair one for a mid-upscale product. As we are talking about a niche product, changing the price wouldn’t be a suitable action to take. Communication by mail with Mrs Stas Marie, Service Evaluation et Strategie, Agence Wallonne a l'Exportation et aux Investissements Etrangers, 3/11/09 ? 12 ? 8 – Place: Dolfin started to look for suitable places for their products in order to create a luxury, exclusive image. They decided to work with only one of the 2 distributors. – Promotion: Dolfin decided to advertise, to promote, to organize tastings in shops, releasing more press articles, etc†¦ – People: the question was: â€Å"are they working with the right people and do they know them enough? † As a response they increased the number of visits to distributors. In a nutshell, Dolfin is using direct exports selling its products straight to distributors. ? 9 4 Export abilities 4. 1 The export diagnosis 4. 1. 1 The production tool The production capacity Dolfin exports today 85% of its total production out of the Belgian territory. However, it’s only using half of its production capacity. The production adaptability Each exporting market has its own demand specificities and likings, that’s why Dolfin pays special attention to analyze the product and make sure it will be suitable for most of the export markets. 4. 1. 2 The finance Dolfin gets its money mainly from the shareholders. They get subsidies from AWEX for the set up of the website, transport for fairs, stands, catalogues, etc. Dolfin doesn’t invest a lot in investigation. They actually wait for potential customers to come to them. 4. 1. 3 The products The Bio-physical characteristic Chocolate has 6 main enemies: humidity, temperature shocks, too high temperature, light, insects and smells†¦ The transport should also prevent strong smells to reach the chocolate because the cocoa butter is very sensitive to the smells. Chocolate is a perishable commodity with an average life time going from 12 to 18 months (depending on the flavours). Therefore, it is essential to assure, on the one hand, a quick transportation and, and on the other hand, good transport conditions to hamper the chocolate to become white if the temperature is not suitable. The regulatory criterion Chocolate being an alimentary product, several norms and regulations are in use worldwide. As seen before, in Belgium we have the HACCP norms and companies also apply the ISO 22000 along with the European directives. ? 10 4. 2 Analysis of the German market 4. 2. 1 The Four C framework From the mid nineties to the late nineties, Germany was considered as a â€Å"mass market† as well as a very compressed â€Å"price market†. Indeed the Germans were known to be big consumers of milk chocolate buying low quality chocolate. However, in the late nineties, beginning of 2000, interest for quality increased and Germany became a connoisseur market. That is when Dolfin entered the German market. â€Å"Marketing is a system for identifying and satisfying customer needs and wants†¦profitably  »13. In order to do so, businesses have got to be customer oriented, which means they have to think in their point of view. In fact, the four P framework we analyzed previously will be now converted into C’s: Product = Customer Solution †¢ Quality products are of great interest as well as organic certified products as it is a growing trend. †¢ Design and packaging of Dolfin’s products are attractive to target audience and they are original. For the packaging, they respect the European directives concerning languages that must appear on the label. Indeed, in the case of Germany, customers can read the ingredients and other type of information in German, but also in French, English and Dutch. Doing this, Dolfin can use the same packaging for Belgium or other countries where these languages are spoken. †¢ 59% are loyal to their brand14. Price = Customer Value †¢ Does price matter? For some, absolutely: Germans are the most price-conscious chocolate buyers (35%)15. But Dolfin suits its prices to the audience it targets, so there is no change TLATLI F. , Behaviors of the actors of the market, Bruxelles, ICHEC, slides 2009-2010. BARRY CALLEBAUT, Survey, 2008, URL address : http://www. barrycallebaut. com/56? group=,year=,lang=en,keyword=,page=1,release =4072,read=en (viewed 15th November) 15 idem 14 13 ? 11 needed regarding this. Furthermore, according to Nathalie Trachte: the costs related to the chocolate production don’t enable them to lower their price. 16 †¢ Regarding the payments, they act different towards European and non-European customers. Indeed, customers inside Europe like Germany have to pay the first 5 orders in advance. After this period they’ll get 30 days credit for each order. If the customer doesn’t pay after those 30 days, Dolfin won’t accept any order from them. Outside Europe, another policy is applied in order to hedge risks. They won’t deliver products, unless they have received the counter-part and this for every order. †¢ Nathalie Trachte also pointed out the fact that prices or payments negotiations are difficult and long but once they are achieved, they do not discuss them again. Place = Convenience †¢ In Germany, Dolfin sells its products through different channels. The company is represented in small specialized shops but also in high class supermarkets. Their geographical coverage is very large. Indeed, you can find Dolfin’s Chocolates almost everywhere but only in luxurious places. This is very important for the image of the brand. In Germany you find them next to competitors such as Domori, Valrhona, etc. †¢ Concerning the transport of the goods, they use the Incoterms Ex Works, which means that â€Å"the seller, in this case Dolfin, puts the goods at the disposal of the buyer in his accommodations†17. As seen previously, the transport has to take into account the bio-physical characteristics of chocolate. Futhermore, we will analyze the reason of this choice in the SWOT analysis. Promotion + PEOPLE = communication †¢ They especially emphasize on this concept. Indeed, satisfied customer is the best advertising. In terms of P’s, promotion and especially people are of great importance since they allow Dolfin to establish a good dialogue between both their suppliers and customers. As analyzed previously, due to the crisis the company had to review its strategy and in order to do so, they focused their attention on communication. This permits Dolfin to be closer to their distributors and hence their customers. Personal interview with Nathalie Trachte, Administrator and Marketing responsible, Dolfin, Bruxelles, Belgium, 27th October 2009.? 17 HEINEN M-L. , Managing International Operations, Bruxelles, ICHEC, slides 2009-2010, p. 39. 16 ? 12 4. 2. 2 Satisfyer Dolfin has to know how to develop its customers’ satisfaction. They are looking for global satisfaction to have total happiness. Because it is not only at the point of sales, but most of all while consuming the product that the customer becomes satisfied, Dolfin is concentrating its efforts on the intangible elements, the most important part of satisfaction. Indeed, for them, launching new quality products with original recipes is important but not only: they also have to invent other elements around that product in order to differentiate it from the competition with the aim to bring customer’s satisfaction. Within this concept of intangible elements, we distinguish the basic ones and the dynamic ones. As regards Dolfin’s basic intangible, quality is of great importance. That’s why, they stress on good services and constant quality to deliver what they promised to the customer. To ensure that, Dolfin’s production methods conform to the strictest and most up-to-date standards of quality and cleanliness. One of the priorities of Dolfin is not only to make sure ingredients come from considered and concerned sources, but also to stay up-to-date in respect to the environment. In fact, Dolfin became the first CO2-neutral Belgian chocolate maker. Related to that quality, Dolfin is trying to create continuity. Indeed, focused on the future, they have to make sure the customer will remain loyal to them. To do so, they are also trying to launch and deliver their new creations on time as well on the market as to the customers. This can only work if Dolfin can trust its customers, but also it has to have good relationships inside and outside the company. Inside the company, everybody knows each other as they are only 15. Outside the company, they are working with suppliers and distributors they have known for a long time. For the dynamic intangible, we can say that it is a prestige product for which the customer knows he will spend more money than for a standard chocolate, but in exchange, he gets a good feeling eating it. ? 13 5 Dolfin’s SWOT analysis Strengths Weaknesses – Organic and Fair-trade Brand : Max Havelaar & – Organic:? ifferent production schedules â€Å"Organic farming† certified – Packaging : language, experience, resistance and traceability – Respect of sanitary rules: A. F. S. C. A – No allergens contained (targets wider audience) – Small company: faster decision making – Present in trendsetter cities – No intermediaries (closer to customer) – Tastings, workshops, exhibitions in shops – Production capacity not fully used – Not in charge of the transport (Ex Works) – CO2 neutral ? more controls (Max Havelaar) – Low financial backup – Not in charge of the transport (Ex Works) Opportunities – Few competition for Belgian organic chocolate – Growing demand for fine dark chocolate in Germany18 – Good reputation of Belgian chocolate19 Threats – Cocoa is quoted on the stock exchange – Profit linked to cash flow management – Competitive market – Copying of packaging and recipes – Seasonal product – World wide economical crisis 5. 1. 1 Explanations of SWOT Since some of the elements were not seen before or could be misunderstood, we would like to add more information. STIGSET M. , German Chocolate Market Is `Saturated,' Association Head Says, URL address : http://www. loomberg. com/apps/news? pid=20601100=aosOXeX9FzD4=germany (viewed 17th November 2009) 19 MERCIER, J. , la tentation du chocolat, Belgique, Editions Racines, 2007, p82-101. 18 ? 14 Strength: – Their packaging is the same for Belgium as for Germany because it is written in 4 languages. Besides, the experience in packaging is due to their first activity in the chocolate business, in which they were making private label range products with Dolfin chocolate in it. They are very conscientious regarding traceability. Therefore, every packaging has a batch on it. Within their new export strategy, they focus on the promotional aspect. Indeed, Dolfin organises tastings, workshops †¦ to attract the customer in an original way. – The production capacity not being fully used, the company could increase the production without spending too much money on new machinery. Consequently, the company could raise its production capacity very quickly and respond faster than competitors to an order. – In most cases, Dolfin doesn’t organize the transport. They use the Incoterms Ex Works. This allows them to focus on their production and not on transport issues. Besides, their customers (importers) are used to transport and know better how to do it. Nevertheless, Dolfin sometimes recommends a transport company to its customers. – In 2008, Dolfin took the initiative to reduce its emissions of CO2 by 15%. Moreover, they took part in a project in Rajasthan to offset their remaining CO2 emissions20. That way, Dolfin became the first CO2 neutral company of Belgium. Weaknesses: – Having an organic and fair-trade brand does include some disadvantages. Firstly, the production schedule will have to be modified in order to prevent contamination between both conventional and organic production. Secondly, Max Havelaar (fair trade) and Certisys21 (organic) check the production to make sure it is worth its organic and fair-trade certification. – The disadvantage of an Ex Works system is that customers may want a full service. However, Dolfin sometimes makes exceptions for some customers. Opportunities: – There is a growing demand for higher-quality dark chocolate in Germany22. Germans are becoming connoisseur and prefer quality. DOLFIN, Environnement, URL address: http://dolfin. be/index. php? lang=En=philosophie (viewed the 20th November 2009).. 1 CERTISYS, Organic Guarantee – Certisys, URL address: http://www. tohi. be/En/home. php? lang=En (viewed the 16th of November). 22 STIGSET M. , op. cit. , p. 12 20 ? 15 Threats: – The cocoa is quoted on the stock exchange in Pounds per ton. This means this raw material is very sensitive to speculations. Furthermore, the production of cocoa depends on the weather, the climate previsions (droughts, floods, p lants diseases†¦) but also the political situation in the producing countries. 23 In addition to that, other raw materials are also quoted (milk powder, sugar†¦ ). As regards the profit of the company, it is inked to the purchase of raw materials because the cocoa price is very volatile. Unfortunately, a price increase cannot fully be rejected on the client, and the company has to bear the burden of this problematic situation. – A good cash flow management is of great importance. It is capital to get paid from customers before paying suppliers. Therefore, Dolfin has to manage well its purchases and sales cycles: they need to have a positive net working capital. – In the chocolate sector, we observe a lot of copying of both the packaging and recipes. Indeed, during fairs for example, it is common to spy on the competition. Therefore, industrial companies copy the ideas of smaller chocolate makers. – Recently, because of the crisis, the bankruptcy of a big customer has consequences on the financial situation of Dolfin. 23 PONTILLON J. , op. cit. , p. 1.? ? 16 6 Recommendations In order to propose recommendations, it is of interest to analyze the history of the current export strategy of Dolfin. We have seen that in 2001 Dolfin started to export to Germany on the demand of two German importers. In fact, Dolfin didn’t plan to export at that time and they didn’t develop any export strategy in order to do so. They just did it, and, until 2007, business went good – sales and turnover increased every year. But in 2007 things went on differently. Dolfin started to loose market shares, and business didn’t go on better in 2008. Starting from that point, we are going to build our recommendations. By interviewing Nathalie Trachte, administrator and manager of the marketing department of Dolfin, we tried to find out the reasons of the current situation. Out of the discussion appeared two essential facts: the competition on the German market has strongly increased and Dolfin is facing distribution problems. . 1 Competition on the German market As developed previously in the cross-cultural analysis, we have to think and act in terms of customer solution and not the other way around. Recent surveys of Barry-Callebaut24 reveal some figures about the German chocolate consumers. Here are some interesting conclusions: – 60% prefers milk chocolate – only 37% consumes dark choc olate (less than all other Europeans) – German consumers are especially keen on change: 25% of German chocolate lovers surveyed regularly try different types and flavours. Among a trend towards premium chocolate, original, organic and fair trade chocolates are becoming increasingly popular. To be able to offer customer solutions to the German consumers, we would recommend: – to increase the amount of milk chocolate products it offers. For example, currently, only 5 out of the 17 flavours of the chocolate bars of 70 grams are made with milk chocolate. – to develop the marketing around Tohi. Indeed, as fair trade and organic food become more popular on the German market, we shall respond to this demand. This should be done through smart advertising. As we noticed before, Germans are sensitive to good quality products and keen to change 24 BARRY CALLEBAUT, op. cit. , p. 11 ? 17 as mentioned above. Therefore, it is of great importance to increase the customer’s awareness regarding the combination of quality – organic- and fair trade, with a particular stress on the quality of Tohi’s product. With these 2 recommendations we hope to respond to the problem concerning the increase in competition. 6. 2 Distribution problems To address the second problem relating to the distribution, we shall focus on ommunication: – We believe that frequent meetings between distributors and Dolfin’s employees would improve the established dialogue. Indeed, by doing this, they can share the knowledge concerning Dolfin range of products, and also the philosophy and strategy of the company. This would be particularly interesting when new creations are launched. This enables Dolfin to have a more coherent strategy and to achieve cohesion between Dolfin, distributors and customers. This way, the message the company is sending will be understood the right way. This might take time and money to be implemented, but it is worth a try. Let’s now focus on possible openings: First, hotel-catering trade (Horeca) is an attractive sector. In Belgium, the company has a partnership with â€Å"le pain quotidien†. We believe it would be interesting to seek for similar cooperation in Germany. Secondly, since chocolate sales are high during specific events such as Christmas, birthdays, Saint Valentine days, mothers/fathers’ days, etc†¦ They should develop new/original ideas in order to respond to this demand. That’s why we came up with the idea that a package including flowers and chocolate could satisfy the specific demand during those special days. However, it is important to point out that it would be a difficult business to develop since laws and norms concerning foodstuffs are very strict. Finally, as the e-business is spreading all around the world, we thought Dolfin should develop a new strategy regarding this. On the one hand, it would enable the company to reach new customers and on the other hand, it allows being closer to their already loyal distributors/customers. Nevertheless, this implies hiring new employees who can manage properly both businesses and the creation of a new department. In addition to that, it is difficult, through the web, to be close to their clients and to establish a good communication. ? 18 7 Conclusion We have reached the end of our analysis and it is now time for us to conclude the work. Firstly, we want to thank Nathalie Trachte for her devotion and vital information. By doing this paper we’ve learned to think in terms of international market and export. We’ve encountered 2 main problems during this assignment: the distribution and the competition on the German market. In order to tackle these, we have relied on the SWOT-analysis which we have built up, in order to develop recommendations. We do hope these will be suitable for Dolfin. For each of the 2 problems, we have tried to find possible solutions. In addition to that, we have also intended to be more creative, considering other possible market openings. Nevertheless, we have to bear in mind the fact that we are not professionals with an experienced background and we may have forgotten to take some aspects into account for the analysis. Furthermore, to make a relevant export audit, more time and more information, especially regarding the German market, would be required. ? 19 8 Bibliography 8. 1 Books †¢ FOULON L. Hygiene et technologie de chocolaterie, Bruxelles, CERIA, syllabus, 2009-2010, 35p. †¢ MERCIER, J. , la tentation du chocolat, Belgique, Editions Racines, 2007, 240p. †¢ PONTILLON, J. , Cacao et chocolat: production, utilisation, caracteristiques, Paris, Editions TEC et DOC, 1998, 638p. 8. 2 Websites †¢ BARRY CALLEBAUT, Survey, 2008, URL address : http://www. barrycallebaut. com/56? g roup=,year=,lang=en,keyword=,page=1,release=4072,read=en (viewed 15th November) †¢ CERTISYS, Organic Guarantee – Certisys, URL address: http://www. tohi. be/En/home. php? lang=En (viewed the 16th of November). Dolfin – Dark chocolate, URL address: http://www. finedarkchocolate. com/Chocolate/Dolfin/index. asp (viewed 16th November 2009). †¢ DOLFIN, Philosophie, URL address: http://dolfin. be/index. php? lang=En=philosophie (viewed the 16th November 2009). †¢ EUROPA, Etiquetage, presentation et publicite des denrees alimentaires, URL address : http://europa. eu/legislation_summaries/consumers/product_labelling_and_packag ing/l210 90_fr. htm, (viewed 1st November) †¢ GERMAN CULTURE, Germany in the World Economy, URL address: http://www. germanculture. com. ua/library/facts/bl_germany_world_economy. htm (viewed on the 15th of November). International Organization for Standardization, URL address: http://www. iso. org/iso/catalogue_detail? csnumber=3546 6 (viewed the 02nd of November 2009). ? 20 †¢ NATIONAL BANK OF BELGIUM, Comptes annuels en euro, 2008, 18p. , URL address : http://banquenationale. be/pub/ (viewed the 20th November 2009) †¢ STIGSET M. , German Chocolate Market Is `Saturated,' Association Head Says, URL address : http://www. bloomberg. com/apps/news? pid=20601100&sid=aosOXeX9FzD4&refer=german y (viewed 17th November 2009) †¢ WORLD WIDE CHOCOLATE, Dolfin chocolates and chocolate bars, URL address: http://www. worldwidechocolate. om/shop_dolfin. html (viewed 16th November 2009) 8. 3 Interview †¢ Personal interview with Nathalie Trachte, Administrator and Marketing responsible, Dolfin, Bruxelles, Belgium, 27th October 2009. 8. 4 Others †¢ Belcolade Conference, Salon de Paris 2009 (14th – 18th October 2009) †¢ Communication by mail with Mrs Stas Marie, Service Evaluation et Strategie, Agence Wallonne a l'Exportation et aux Investissements Etrangers, 3/11/09 †¢ HEINEN M-L. , Mana ging International Operations, Bruxelles, ICHEC, slides 2009-2010, p. 39 †¢ TLATLI F. , Behaviors of the actors of the market, Bruxelles, ICHEC, slides 2009-2010 ?

Health care market

Health care is a complex of different kinds of services, supplies and cares which can be related to health of a person. It also includes therapeutic, diagnostic, preventive, maintenance (palliative care), as well as counseling. It also includes dispensing of prescribed medicines and their sale. (Glossary of Common Terms p.1)Classical concept of market, which supposes presence of the customer and the seller, who possess definite values and are ready to enter into mutually beneficial exchange, allows to examine sphere of health care as health care market of medical services (The health care marketplace p.1), which can be divided into three sub-markets, which are mutually connected.â€Å"Throughout the health sector – from service delivery, consulting, financing and pharmaceuticals to biotech and genetics – the business of health care has become increasingly complex† (Health sector management p.1) [Table 1]1. The governmental health care market.Governmental sector i s not very big. Medical service here is examined as social good, from using of which have advantages all citizens. Economical relations between government and medical institutions are characterized as relations in favor of the third party: medical institution is a manufacturer of medical services, and the government is the buyer, whereas population of country uses those services (in case the citizens are insured, they can use medical service).In relation to this fact, the government cannot completely estimate quality and quantity of services, which are needed by the buyer.Population, as real consumer, cannot influence the level of payment for services and medical establishments, because demand for services from his side is not solvent.The government also â€Å"pays for about half the health care purchased in this country, through the national health insurance for the poor and elderly known as Medicaid and Medicare.† (Sheldon Richman, p.1)2. Insurance marketSellers of medical services in the insurance market are medical institutions, and the buyers are citizens which have formal insurance. But receiving services doesn’t accompanied by exchange of values between medical institutions and citizens who have insurance, – receiving of medical help is guaranteed in correspondence with contract of insurance, concluded between insurer and consumer.Taking into account these circumstances, receiver of medical service is a person, who has insurance, but he isn’t a payer for the seller- for medical institution, and he doesn’t have market value, because he doesn’t pay for service himself. The direct payer – the insurer – is not a participant of market relations, because he doesn’t participate in processes of exchange at the health care market.Besides division of commodity and money flows, health insurance market actually has no competitors in prices, because actually the process of payment and conditions of servi ces provided is executed within the limits of territorial program by firmly established rates.Another point that there is no competitors is that the patient from the first time of entering medical establishment chooses this medical institution and is limited in receiving medical services within the limits of that definite program of that definite medical institution, because he has a list of medical establishments, which provide service accordingly to his insurance.We cannot not to notice one important advantage: health care insurance market differs from that of health market, which demands payment for medical services, because the person, who has insurance of such definite medical establishment doesn’t need any additional money to pay for medical service, in case the disease or accident is indicated in his insurance.Another point is that in the future, in case the patient is fully satisfied with service provided, he can become a constant patient, which uses additional servic es of that definite medical institution, which are not included in his insurance.In such a way health care insurance market makes a good job for medical institutions, because in accordance with statistics, expenses for attracting of new consumer are five times more of those, which you spent for preserving the consumer you already have and who is already using your medical service.Among the largest health insurance programs in USA is Medicare program   (Medicare Program, p.1)3. The health care market of payable services.The patients here are the consumers and they are ready and are able to pay for medical first-rate service, and doctors or medical institutions are the sellers, and their interests are connected with reimbursement of expenses and getting profit. Because of constant increase of competition at this market, they create conditions for constant improving of service quality, search of new products and technologies as well as strict single-out of ineffective strategies and participants of the market.Level of proposition depends on ability of medical institution to react flexibly on the constantly increasing demand: in order to increase or to decrease quantity of necessary services. Unfortunately, such flexibility is not always possible, because nowadays this niche of health care market occupy medical institutions, which have different forms of property, different subordination and channels of financing, so even in market conditions volume of proposed services not always depends on their actual manufacturer.But exactly on manufacturer depends choice of that combination of directed parameters, which are called complex of marketing (service or complex of services, price, providing a service to the consumer, way of proposition and promotion of service, personnel of medical establishment, etc), manipulating with which organization tries to satisfy demands of patients in the best way and to turn income into real increase of service quality.