Debt in Australia, Monetary Policy Essay Example for Free

Debt in Australia, Monetary Policy Essay Introduction It is imperative that the Australian households’ debt have noticeably risen over the past two decades, and is currently rated high according to international standards. The sharp increase in housing debt has been the reason for the rise in the household debt. Increased availability of housing finance, strong demand for debt from investors, and lower interest rates are the main drivers of the rising housing debt. The households’ net worth and servicing ratios will be discussed in this paper as the impacts on the higher household debt levels. The impacts of the instability in global capital markets will be discussed in this paper in relation to the housing finance market in Australia. Lastly, the implications of the rising household debt will be discussed in relation to the financial stability and monetary policy. Trends in household debt It is important to note that Australian households had a fairly stable ratio of debt to disposable income at approximately 45% during the 1980s. However, rapid rise in the ratio of debt to disposable income was recorded since 1990, with it reaching optimum of 157% in December 2007. The bulk of the increase was accounted for by the housing debt, that is, over the period, the ratio of the housing debt to disposable income rose to 134% from 31%. It was also recorded over the same period, a rise in the ratio of personal debt to disposable income to 22% from 13%. A sharp rise in the ratio of debts to assets was recorded at 17% in December 2007, from 8% in December 1989 (Wilkins Wooden, 2009). A sharp rise in household indebtedness in a number of advanced economies has been witnessed over the last two decades. It is however, noted that the increase in household debt in Australia is pronounced. The Australia’s ratio in household debt to income was recorded as the highest in December 2007 despite Australia recording as one of the countries with the household debt lowest ratio to disposable income among advanced economies in the late 1980s. It is also imperative to point out that among advanced economies; Australia rose from the bottom position to the middle number in terms of the ratio of household debt to assets over the same period (Berry Dalton, 2009). Housing finance market Focus on the housing finance market is emphasized in this paper because the housing debt in households’ total debt is dominant. An average of 15% in the annual growth in housing debt was recorded since 1990. In the periods, 1988-1989, 1994, and 2002-2004 strong growth in housing debt was recorded. This strong growth in the growth in housing debt was faster than the growth in the disposable income of households over the same period that stood at an average of 6% only (Berry Dalton, 2009). Significant growth in house prices accompanied the sharp increase in the housing debt. Over the period 1987 and 1988, the house prices doubled, however, during the first half of the 1990s the house prices drifted slowly higher, with the house prices doubling more between 1997 and late 2003. Continuous increase in aggregate house prices was recorded since late 2003; however, the trend varies markedly across the country, for instance, house prices in Perth increased strongly, while the house prices in Sydney decreased over time. The boom in resources supports the varied trends in house prices across the country (Berry Dalton, 2009). A number of factors accounts to the rising house debt in Australia over the past years, with lower interest rates accounting for high borrowing by the households whenever they take their housing loan out. This trend has been responsible for the rise in the average size of new loans, which results into the rise in the average size of outstanding loans over time. The availability of housing finance has resulted into the rise in the capacity of households to borrow finances (Wilkins Wooden, 2009). Financial health of households It is noted that the historic sharp increase in the Australia’s disposable income in December 2007 was accounted by the strong rise in the housing debt in Australia over the past fifteen years. It was however, pointed out that only a few households had difficulties in repaying their debt obligations, despite the historic sharp increase in the housing debt in December 2007 (Berry Dalton, 2009). Impact of the turbulence in global capital market It is significant to note that the housing finance market in Australia has suffered greatly as a result of the global capital markets’ turbulence. This is because half of the total funding for financial institutions in Australia is accounted for by the deposits. The foreign and domestic capital markets the balance in the Australian financial institutions. There has been significant rise in the mortgage rates, and significant change in the markets shares from lenders, due to this, there is limited restriction to the overall supply of housing finance (Berry Dalton, 2009). Significant reduction in some forms of capital market funding as well as significant rise in the most of the forms of capital market funding have resulted from the turbulence in the financial market. It is however, noted that the impact of the financial market turbulence have been felt in a number of securitization markets. Securitization markets over the past decade or so, have established itself into as a significant source of funding for housing loans in Australia. In mid 2007 for example, outstanding securitization housing finance loans had accounted for 23% (Wilkins Wooden, 2009). This was a significant rise from the mid 1990s 5% housing finance loans that were securitized. A number of loans from mortgage originators were being securitized. Institutions like credit union, regional banks, and building societies had adopted securitization of their loans since it was a cost effective way of wholesale funding (Wilkins Wooden, 2009). The onset of the global financial turbulence in July 2007, led to significant close of the securitization market. There were significant rise prime residential mortgage-backed securities (RMBS) to 75 basis points in December 2007 from approximately 15 basis points in mid-2007. It is imperative to point out that Australia’s Residential Mortgage-Backed Securities (RMBS) accounted for the issuance of a number of Australian Asset-backed Securities (ABS) that extends on AAA-rated senior tranches (Berry Dalton, 2009). There was significant spread in the subordinated AAA-rated tranches that increased to approximately 110 basis points from approximately 20 basis points. It is significant to point out that despite the sharp increase in the spreads, investors in Australia has never encountered losses on rated Australian RMBS, coupled with the housing market in Australia remaining healthy. The investors have become more concerned with the product itself, as discounts are attached to all the sales of securitized products. The selling of residential mortgage-backed securities (RMBS) by several structured investment vehicles (SIVs) has also created excess supply in the secondary market (Berry Dalton, 2009). Implications for financial stability and monetary policy It significant to point out the access to credit by the household sector has greatly increased courtesy of financial innovation and deregulation. The households in Australia have become more comfortable to take loans owing to the ongoing strong performance of the economy (Berry Dalton, 2009). Â  The balance sheets of households have remained in good health despite the significant rise in the household debt; this has resulted into significant rise in asset-value capable of offsetting the rise in debt. It is also significant to note that macroeconomic conditions in the economy are also favorable. References Berry, M., Dalton, T. (2009). Mortgage default in Australia nature, causes and social and economic impacts. Melbourne: AHURI. Wilkins, R., Wooden, M. (2009). Household Debt In Australia: The Looming Crisis That Isnt. Australian Economic Review , 42(3), 358-366.

Leadership Skills of Paul of Tarsus

Leadership Skills of Paul of Tarsus Carmel Gittens In the light of Romans, 1 Corinthians and Galatians, what sources of authority does Paul draw on to reinforce his case and what can be learned from the apostle in this respect for contemporary church leadership? Following his conversion on the road to Damascus, where Paul of Tarsus, one time persecutor of the followers of Jesus met with the risen Lord, he became the greatest defender of the newly forming Christian faith. His zeal and fervour once so attuned to ridding the world of this perceived threat to Judaism now turned to promoting the same. However, such was his dramatic and life changing meeting with Jesus, that Paul not only devoted his life to growing and nurturing early Christian churches, and spreading the gospel across the Mediterranean and beyond, but was willing to endure persecution and indeed martyrdom himself in the pursuit of his divine mission. It is widely held that Paul was uniquely equipped for this mission as he had many of the qualities needed for such an enormous task. In this essay, I will look at Pauls journey from persecutor to proselyte, a journey that took him many thousands of miles and one that required him to assert his message with conviction and authority. Paul would have to defend his teachings and the gospel he proclaimed in many varied and often difficult situations. To do this he used a variety of sources, for example, when Paul defends his apostolic status or challenges lax moral behaviour or advocates his gospel message he draws on his conversion experience, the Hebrew Scriptures, his finely honed and excellent rhetorical skill, and subsequent force of argument, to strengthen his case. Finally, I will look at how his leadership skills and methods may give us an insight into contemporary church leadership today. Let us first look at Pauls apostolic authority. There is no doubt that Paul claimed to be an apostle, and he certainly exercised authority, but when he did would he have claimed this to be as an apostle? He would not particularly have claimed that his authority came from his appointment as an apostle, but there are times when in defending his status he does assert his apostolic position. In the first two chapters of Galatians and in the letters to Corinth Paul hotly defends the position of being an apostle. In Galatians, some had argued that because he was not one of the original apostles appointed by Jesus he is somehow inferior to them, but more importantly as inferior to Peter. Of course, this is at the heart of the debate over apostleship. Pauls response to this was furious, he was furious with the old teachers who questioned his authority and tried to tie up the Christians with the old laws. But he was even more furious with the Christians for succumbing to their intimidation. Paul begins his letter with a strong and clear account of how his commission is not by vote of man, but God given. He continues to state how once James, Peter and John have recognised this they shake hands with him and Barnabus and assign them to a ministry with the non-Jews, while they continue with the Jews. He is stating here also that even as he rebukes Peter for certain practices that he thinks are out of line, Peter recognises his authority and equality with himself. In 1 Corinthians 9.1; 15.8-11 Paul asserts his right to be included as an apostle. He had after all seen the risen Christ, and the mission work he was doing with the Corinthians attested to his position (1 Cor.9.1-2) Am I not free? Am I not an apostle? Have I not seen Jesus our Lord? Are you not the result of my work in the Lord?2 Even though I may not be an apostle to others, surely I am to you! For you are the seal of my apostleship in the Lord. But this claim is not one that Paul constantly refers to. He actually only claims to be an apostle in Romans, 1 and 2 Corinthians and Galatians. In both Corinth and Galatia some denied that he was an apostle so it is here in his letters to them that he launches his defence. But in Romans he speaks from the outset as being an apostle perhaps because having never personally visited these churches he wants them to be clear from the outset that the gospel he proclaims is on the same standing and has the same authority behind it as that proclaimed by Peter and the twelve. He does not however have to defend his position as much in Rome as he does in Corinth and Galatia. But rather he gently reminds in Rom 11.13: 13 I am talking to you Gentiles. In as much as I am the apostle to the Gentiles, I take pride in my ministry. It is clear from this that Paul only therefore claims his apostleship when this has been called into question by others, and not on the basis that he needs this authority in order to be a witness to the gospel. Pauls self-professed authority comes from God himself via Jesus the Son. Paul claims this has come from his road to Damascus vision of Christ, and as such he believes that he speaks authoritatively as one the Lord trusts. For example, when speaking to the Corinthians on the subject of marriage (1 Cor 7.25) 25 Now about virgins: I have no command from the Lord, but I give a judgment as one who by the Lords mercy is trustworthy. Although he does at times directly speak of the Lords teachings; as when instructing about the proper way for the Lords supper to be celebrated (1Cor 9.14), 23 For I received from the Lord what I also passed on to you: The Lord Jesus, on the night he was betrayed, took bread, he does not regularly use the words of Jesus but claims that his authority comes directly from the Lord e.g.,for building up not tearing down (13.10). Scuhz1 argues that Authority is the interpretation of power and for Paul that power would be the gospel He claims that the thing that makes Paul so authoritative is his ability to interpret the gospel. This act of interpretation unlocks the source of power in the gospel and thereby makes that power accessible to those who respond in trust and obedience to it. Pauls ability to be a vessel of this power to people is what establishes his apostolic authority. Because the gospel has both an initial and ongoing task to accomplish in the community, Pauls authority extends past the initial acceptance of the gospel and well into the intricacies of the communities everyday forms, patterns and practices. His right to speak to the communities he founded arises out of the foundational power which they both have experienced, the gospel that he both mirrors in his life experience and which he preaches. The restraint on apostolic authority has its anchor in the nature and meaning of that same gospel. Power through weakness. No egotistical or authoritarian style for Paul. His authority and leadership are informed, shaped and regulated by the paradoxical content of the gospel he preaches. see I Cor 1:18ff Bibliography Dunn, James D G (ed), The Cambridge Companion to St Paul (Cambridge: CUP, 2003), especially the essays in Part 3. Furnish, Victor Paul, Theology and Ethics in Paul (Nashville: Abingdon, 1968). Longenecker, Richard (ed), The Road from Damascus: The Impact of Pauls Conversion on His Life, Thought, and Ministry (Grand Rapids, Michigan: Eerdmans, 1997). Malherbe, Abraham J, Paul and the Popular Philosophers (Minneapolis: Fortress, 2006). Sampley, J Paul, Walking between the Times: Pauls Moral Reasoning (Minneapolis: Fortress, 1991). Kim, Sayoon, Paul and the New Perspective: Second Thoughts on the Origin of Pauls Gospel (Grand Rapids: Eerdmans, 2002). 1Schà ¼tz, John Howard, Paul and the Anatomy of Apostolic Authority (Cambridge: CUP, 1975).

Digital Media And Print Media: Dying Out

Digital Media And Print Media: Dying Out With reference to the presentation of Fenna Statz on the 14th of December, in which we spoke about the problem that due to digital media, print media no longer will exist in the near future. I hereby want to talk about the problem, to offer a conclusion and a solution. The problem is that print media is dying. Since the first facts of electronic media and print media has always felt an undue threat. First was the radio and then to the television. Now the internet is apparently up against the vast and widely spread print media. Or print media is dying, is a question that a lot of marketers ask themselves from time to time. Whether they believe in the power of the printed word or choose to put all their advertising dollars into digital media. This report is to provide you more detailed information about the problem that print media is dying and if it will exist in the near future. Everyone knows already what digital media is, but most of the people have no idea what it is and how it can help you out when it comes to marketing. It is very important that you get up to speed so you can use this to benefit your business. In fact digital media refers to any type of electronic media out there. Today media has accessed in many ways, including with hand held devices like mobile phones, laptops, desktops, mp3 players, and more. The digital media will take over the world. You can read everything on the internet and everybody has their own network, like social media. Social networking sites are the websites using which you can make new friends and find out your old friends. Not only making and finding friends you can also find many other services available in networking sites. Usually all the networking sites work in a similar way. The difference is just of rules and regulations. Usually people who join these sites have some common reasons like finding old friends, makin g new friends, dating, religion, etcetera. There are many forms of social media, the most common are: Twitter, Facebook and MySpace. Facebook is the largest social networking site for people connecting with friends and others. More than 500 million people are active users on Facebook, 50% of the active users log on to Facebook in any given day. The average user has 130 friends and people spend over 700 billion minutes per month on Facebook. MySpace is the same platform as Facebook, and is commonly referred to as a place for friends. Twitter has 190 million accounts. Almost 91 percent of the Dutch youth is active in the social media. This includes the Dutch youth to the top of the European Union. Only Polish people make more use of social media almost 94 percent. The use of social media decreases with age. In the age group 25 to 55 years, the proportion of those active in social networks in the Netherlands and 54 percent of the age of 55 to 75 years just over 30 percent. Print media advertising is exactly what it says, it is advertising in a print media arena. The two most forms of print media advertising are newspapers and magazines. Print media also includes many other advertising like: Posters on buses, trains, toilet rooms, subways and a lot of other thing. Also outdoor billboards, ads in phone books, flyers, etcetera. The proportion of Dutch says that someone in their household has subscribed to a newspaper, decrease from 62 percent in 1997 to 50 percent in 2008. This decrease may be related to the emergence of a number of free newspapers. I think that in the future the people will read the news on the internet. News breaks are much faster online than in any other medium, except for live television. From all that facts of above it can be concludes that now it is very clear where the trend is headed, so no doubt, print media in its traditional form will decline. But I do not think that it will cease to exist in 10 years. Printed media will be less, but there will always be a need for a printed copy by the people. With print media you can share it and you can move it. So keep that fact in your mind if you develop a media strategy. Studies have shown that print advertising has a lower ROI and that should bring down the cost of advertising soon. Think of it is a non expensive channel to advertise. While we are used to accessing news in real time from the web, print media will still have a role in providing content where timing is not an issue. And the transition to a digital world will not be accomplished within 10 years. I think that will take over more than 100 years. The government could not forbid the newspapers because it will be always a need by many people.

The Debate over Same Sex Marriage Essay -- Politics Political Essays

The Debate over Same Sex Marriage Legislation is deeply entrenched in language and the continual process of interpretation. Laws are created as a response to cultural and societal needs, wants and norms and are restructured and interpreted as these desires and standards change over time. The importance of the words chosen and the syntax used in order to translate society's standards into legislation are amplified over time because they are continuously deconstructed, examined, and analyzed. As these laws are applied to and challenged by society, policymakers must examine them and then change them through discourse and dialogue. As current sentiments towards marriage are changing and shifting, policymakers must begin to examine our nation's legislation that dictates how marriage works in our country. They must attempt to create a policy that is ethical and constitutional which at the same time accurately represents the majority's opinions. The issue of same-sex marriage became relevant in the recent election due to the actions of courts and local officials in both California and Massachusetts. President Bush proposed an Amendment that would limit marriage rights to only heterosexual couples in all states. Many government officials felt that this was unnecessary due to the success of the 1996 Defense of Marriage Act, which John Kerry, who would come to run against George W. Bush in 2004, spoke out against. The Act passed through both the House and Senate with resounding majorities. Because of the media attention of the same-sex marriage debate in this election year, constituents of both parties have examined the arguments that both Bush and Kerry have made for and against legislation which limits marriage rights. By examini... ... human element of the marriage debate, liberals like John Kerry can appeal to the section of the American population which is concerned with the preservation and expansion of a citizen's rights but the conservative approach of playing into the weaknesses and fears of conservative heterosexual faction of American population, they can offer a scapegoat. Many people believe this issue was brought into the spotlight in order to distract people from the deplorable condition of Bush's war in Iraq. It provided the conservative base an enemy against whom it could rally. It provided a cohesion to conservatives everywhere that was lost due to the state of the war. By examining the ways in which each candidate structured there argument considering same-sex marriage legislation, one can gain insight into the interplay between the two parties on a national and a personal level.

Radio Stations and the Public Good :: essays papers

Radio Stations and the Public Good For my final project on public interest I chose to view the public inspection files of the local radio station. I have been working at radio stations all of my life and had never seen or heard of a public inspection file until this class. In order to prepare the station for my arrival I called in advance to make an appointment. The receptionist answered the phone and I told her that I needed to see the files, this created a great deal of suspicion and I was directed to Dave Andrews the Vice President of Regent Broadcasting. Right away I knew that it was not a regular request due to the manor of which he explained the rules, it was as if he was reading them of an F.C.C handout. â€Å" Any member of the public can view the files between Monday and Friday during normal business hours†, he recited. I made an appointment, and I was very interested in viewing something that deserved the attention of the Vice President. I had no idea that this visit would be so rewarding and life changing. I arrived at the local radio station in time for my appointment. The receptionist asked to see identification, I gave my driver’s license which she photo copied. I felt as if I was in a secret area of the Government where I needed clearance to view the top-secret files. After my information was taken I met Mary-Jo Beach the General Manager who would assist me in viewing the public inspection files. I was disappointed when I first saw the standard gray file cabinet, because in my head I pictured a mission impossible type setting with gadgets and locks. Mary-Jo sat with me in her office as I viewed the files. She was very suspicious at first and very interested in my objective. Before I was actually able to review the public inspection file, Mary-Jo asked me what exactly I wanted to see and why I was interested in their station. I explained that I was a student and as our final project we had to visit a station, view the files and then report our experience and determine if they were broadcasting in the public interest. Mary-Jo’s whole manner changed, she seemed to be relieved. After I had explained the main reason she helped me work through the files and was very helpful in answering my questions.

Messaging in 2.0 World

IntroductionIt has become apparent that all sectors of the economy are depending on the technology development for the organizational growth and for their general economic growth. Jennewein (2005) has argued that in the business sector of the current century, the requirements are different from the past century. This is because in the 20th century, the business enterprises depended on physical aspects such as land and machines for business success.This has however changed and the 21st century businesses are depending on intangible assets such as knowledge and know how of its employees, as well as intellectual property rights. This has forced companies if they are to succeed in any business endeavor to create and update new technological competencies and replace all obsolete technologies and products within the organization.Technology has also improved the mode of providing education system to both the learners and the teachers, especially in the library use. The use of technology in libraries has a backdated history as in early eighties as has been argued by Grosch (1995), that,the decade of the eighties would bring systems technology and new electronic forms of access to smaller library through the microcomputer. A more global view of automated library systems would emerge. Communications and linking of users to library systems remotely with gateways to arrays of locally available databases were becoming a brighter possibility. Finally library automation and application of the computer to bibliographic activities would become a natural phenomena since parent organization also were evolving to a more global information systems strategy, (pp.49).Messaging in a 2.0 worldLearning and teaching is supposed to be fun and enjoyed to the student and the teacher. There are different ways that education can be made easy and enjoyable. One of the ways is by undertaking technologically changes that can make the learning and teaching process to be easy.   Technology makes availability and use of learning materials easily accessed and to go with the current economic requirements.Technology changes have been continuously making the learning and teaching process easier for the student and the tutor. Materials can be easily accessed and shared among the different users of such materials. For instance, the new web 2.0 sites slideshare enables people to share presentations on slideshows.It is also possible to use the system to â€Å"upload PowerPoint, open office, keynote or PDF presentation, tag them into your blog or website, browse others’ presentations and comment on individual slides†, (Stephens 2007 pg 61). This has increased knowledge sharing as one can be able to know immediately what others feel about the work they’ve done, and where there is need of improvement.These kinds of changes in technology have made information not to be seen as a container of value but the knowledge alongside the changes. Knowledge, like all the oth er sectors keeps on changing and people have to keep pace with the changing technology so as to ensure they are not left behind in development or, in competitive advantage in businesses.Twitter messaging is a means of the current technology being used widely. To understand how twitter functions, think of it â€Å"like a personal IM account that can be shared with everyone. Once you have a twitter account set up, you can send short IM, SMS or web-based messages to twitter†, (King, 2007).Therefore, twitter can be defined as a system that allows users to update messages containing up to a maximum of 140 characters to the twitter website via SMS, Instant Messaging or e-mails. The updates will be displayed to the profile pages of the user and instantly delivered to the other end user who has signed up to receive them.Uses of messaging 2.0 world in libraries.The web 2.0 technology is becoming more useful in the library use. It is widely used especially in communicating in conferenc es, keeping up with the development in the filed and promoting library services.Ruby on rail technology is one of the of the twitter technology that can be used to keep track of the library employees. According to Williams (2006), â€Å"Ruby on rails is an open source web development framework that allows you to rapidly develop data-driven applications using ruby programming language†. An application in this context refers to web applications such as Basecamp and flickr. Ruby rails programming can be used in many computer applications including Basecamp, blogging platforms (e.g. Mephisto) and twitter.Twitter is the most interesting of the Ruby Rails as it enables one to keep track of the colleagues whenever they are by the use of SMS text messaging, Instant Messaging or the web by posting updates (Williams, 2006). To use the twitter to track a person, the cell phone is set to use the twitter and an SMS is send to the twitter short code, containing the updates, the message wil l be automatically posted to the twitter site. With this, it will be possible to spread the contacts cell phones so as to see what those in the contact phone are doing.  This kind of technology is being used in libraries to trace down the employees of the library in an organization. It will be possible to know if the employees are at their workstations or not, and the exact work they are doing. There are many new methods of communication that comes up on a daily basis in the organization due to technological changes. It is therefore important that the organization chooses the method that is more suitable and appropriate to the organization.In library organizations messaging technology allows the employees to set up twitter accounts and share their information. The workers can be able to locate coworkers Instant Messaging name. It can also help employees to know exactly the working hours of their colleagues and thus be able to relay any information or seek any urgent information at that particular time. While working with this system, it is possible that the patron might also stumble on the employee’s information while browsing and thus send reference question to the employee’s site.Another means that the SMS can be used in libraries is through referencing. The first SMS referencing mode was started at the South Eastern Louisiana University by Mr. Hill in 2005, (LibranInBlack. Net, 2005).The reference uses the Altarama referencing system. The system operates between 8 am – 9 pm, as this is the period that the librarians are around to answer questions from the clients. The SMS/text messaging referencing systems of the South Eastern Louisiana University is limited to 160 characters. The SMS that is send to the librarian reaches the end as an e-mail and then when the librarian answers the email, it gets to the other end user as an SMS. Because the librarian is only required to use short answers, it will not create problems related to typing especially to those who have a poor typing speed. This will ensure that the replies are not delayed because of the typing problem.The Altarama referencing system has got unique text messaging numbers set bundles of text messages. For the email on the librarian side, the system allows the products to run seamlessly with MS outlook. The Library number is always the sender, hence the email message will stand out in the inbox of the recipient.   If the recipient is using outlook, it is possible to reply directly through email. â€Å"If not, you [the recipient] need to use whatever e-mail program you are using and manually respond (copying and pasting in the ‘to’ field)†, (LibranInBlack. Net, 2005).The South Eastern Louisiana University referencing system tried as much as possible to limit the characters to 160. Responses can be sent in multiple messages but the librarians’ try as much as possible to have only one message. This is because the system gives the m room to do this by automatically abbreviating some words, such as, for -4, too-2.The system also helps to keep the exact time that the transaction took place and the number of the transactions without keeping the actual messages of the transactions that took place. The library systems only accepts text messaging and not images. Therefore, incase a person sends an image message, the library will indicate error message.The synchronous messaging system in the libraries allows real- time communication between individuals. â€Å"Librarians have began employing it to provide ‘chat reference’ services, where patrons can synchronously communicate with librarians much as they would in a face – to – face reference context, (Manness, 2006).Manness argues that Web 2.0 is considered to be consistent with tenet 2.0 as it â€Å"allows for collaboration between the patrons and librarians, it allows a more dynamic experience than the fundamentally static, created-then- consume nature of 1.0 service†.The importance of using this mode of interaction in the successor of the library system has enabled the librarian to adopt the successors of the library web system more quickly and expertly. There have been improvement in the instant messaging that have seen the inclusion of audio and video messaging also becoming increasingly common in the library use.Libraries have started placing â€Å"links to their charts reference service within resources themselves such as at the article level in subscription data bases†, (Manness, 2006). The system has been developed so that the chart reference takes place within the framework of the library system as much as it could have been when dealing with a physical library patron.Library 2.0 has also been designed to offer immediate help to a user whenever it seems that there is a problem in using the library system. This is possible when certain user behaviors are detected in the system. The common behavio r that can indicate the librarian patron that the user needs help in the use of the library service is when a â€Å"user browses through certain materials repeating steps and moving cyclically through a classification scheme or series of resources,† Manness (2006). The use of a synchronous messaging service is useful tool to the patrons in giving the assistance to the library user  Ã‚   whenever in problem of accessing library materials.Librarians have been using the messaging system to promote the service of the library. Library creates several twitter accounts and sends messages to its client’s in various categories informing them of the services offered at the library. Since the message gets to the end use instantly, it becomes an effective tool in carrying out promotional activities compared to the other mode of media communication. Therefore, to be completely in competitive environment like any other business organizations, libraries have got to tactically promo te its services to attract more users of its products. In promotion, libraries have especially benefited through the technology in reaching to their clients in the remote area easily.The new technology of library 2.0 implies that the librarians take the library to where the users are instead of the users going to the library. These sites are also important in that they put the library where the users are, and especially meets the needs of the users who are constantly on the move.There are still increased numbers of libraries world wide adopting the system of the SMS referencing. The Lee Kong Chian Reference Library has adopted the SMS referencing system because of the high penetration of cellular phones in Singapore. The increased number of cellular phones and Internet use has created avenue for increased online chat.â€Å"Trends such as these suggest that SMS could be an ideal way to reach out to a greater pool of potential users of our reference enquiry service†, (Han and S eng, 2007). The use of cellular phone as a tool of obtaining referencing material is advantageous in that it is very portable. This has made it an ideal solution for the Lee Kong Chian Reference Library to use it for posting reference materials for those who have got a tight schedule such that it is not possible for them to visit the library personally to receive any information they need.Apart from the recipient getting immediate information, the users of the web 2.0 world referencing system can be able to maintain their anonymity  Ã‚   while seeking assistance from the libraries. The system is also receiving much advocacy because it can be used or accessed at any time of the day, or within any period, i.e. its operation is 24/7/365ConclusionTechnology in all sectors of the economy enhances service delivery to both service providers and the clients. This technological improvement ensures that the service delivery is offered at the best disposal of both the client and providers.Li braries like any other sectors of the economy have to embrace technological changes and use it positively to increase performance level in the organization. Despite all the obstacles that might be associated with the new technology, in the long run when the system has been fully and nicely implemented it becomes more beneficial to the organization than the sunk costs that might have been brought due to implementing the system.To ensure that the technology receives positive acknowledgement from all stakeholders, Librarians should try to make the system simple and easy to use to both users so as to increase the attitude of the users towards that technology rather than making them shun it away.ReferenceJennewein K. (2005): Intellectual Property Management. The Role Of Technology Brands InThe Appropriation  Ã‚   Of Technological Innovation, Springer, ISBN 3790802808.King D L. (2007). Twitter Explained for Librarians or 10 Ways to Use Twitter, Retrieved on29th Oct 2007 from http://www. davidleeking.com/2007/03/10/twtter-explained-for-librarians-or-10-ways-to-use-twitter/Manness J.M (2006): Library 2.0, Theory: Web 2.0 and its implications for librariesRetrieved on 29th Oct 2007 http://www.webology.org/2006/v3n2/a25.htmlStephens. T. (2007): Trademark 2.0: Defining Your Value in the web 2.0, World Lulu.com,ISBN 061556886.Williams J. (2006). What is Ruby on rails? Retrieved on 29th Oct 2007 fromhttp://www.digital-web.com/articles/ruby_on_rails_for_the_rest_of_us/

Informal situational analysis †kia motors corporation Essay

An informal situational analysis is being conducted on KIA Motors Corporation to analyse critically the internal and external environment as it concerns KIA so as to determine its capabilities, customers, positioning and competitors within its business environment. It would also involve the marketing and business strategy of the organization, how they align to achieve profitability and/or market orientation, we would be able to discover after this analysis if KIA’s focus is on profitability or market orientation. Are they a market-oriented organisation? This exercise can be achieved by exploiting the SWOT analysis, PESTEL or the 3Cs analysis and this analysis would concurrently use 2 of them. KIA Motors Corporation was founded in 1944 to engage in the manufacturing and sales of automobiles starting from bicycles to passenger vehicles, commercial vehicles, military vehicles and recreational vehicles while also investing in new technologies in the development and manufacture of eco-friendly cars. Kia Motors remains a driving force in Korea’s automotive industry with an expanding product line sold through a network of 4000 dealers, 20 sales subsidiaries, 141 distributors scattered across about 170 countries around the world. Its major brands are the Cerato, Soul, Rio, Picanto, Sorento etc. Kia’s management vision coined as – Innovation for Humanity tells a lot about its commitment to market orientation. 1. To grow the Kia brand to a world class level and become a leader in the global automobile industry. 2. To pursue â€Å"Customer Happiness† by providing the best technology and the highest levels of quality and service. 3. To work hard at growing out of conventional modes of thinking by being creative and spontaneous innovating 4. To achieve its long term vision by striving to satisfy the customer through technological innovation that respects people and nature. KIA Motors’ goal and mission statement is â€Å"to become a tier-one automotive brand by 2016 with a mission to become one of the most desirable brands in the automotive industry by providing a different type of driving experience that will enhance people’s lives and enrich them every day.† According to several researchers of marketing strategy, an organization that is highly market oriented and aiming at achieving above normal market performance and providing superior value to customers to achieve a competitive advantage is bound to make profit, however, profit ought not be the major focus above market orientation. Kia is able to inculcate the culture of market orientation which according to Kohli and Jarwoski (1990) â€Å"is the organization wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments and organisationwide responsiveness to it† into the organization. Kia gathers intelligence on its present and future customers through using data as regards their family life, work, holidays, interests etc from reputable marketing surveys, it also gathers information on current and future weaknesses and strengths of its competitors and ensure all these information are properly disseminated to all departments of the organization inorder to each to position itself appropriately to achieve customer satisfaction and maintain competitive edge. There is a strong coordination between key departments ranging from marketing, branding& communications, finance to design departments. Therefore, there is a positive relationship between market orientation and profitability. The organization also as a matter of policy allocates up to 5% of its profits to Research & Development so as to continue to deliver sustainable superior value to its present and future customers even in the long run. SWOT Analysiss STREGHTS 1. Its marketing strategy that is focused on customer needs and desires. 2. Pricing 3. Style and Vibrant designs that provide appeal to the younger generation. 4. Increasing network of distributors and dealers worldwide. 5. Lower cost of production 6. Manufacture of hybrid electric vehicles (eco-friendly) and highly fuel efficient products that can match other international brands. WEAKNESSES 1. They need to improve on operational efficiency to meet both quantitative and qualitative standards 2. Inability to appeal to a broader audience 3. Quality 4. Low global awareness level OPPORTUNITIES 1. A shift in consumer preference for eco-friendly vehicles due to skyrocketing oil prices and increased pollution resulting in the depletion of the ozone layer. 2. Partnership with Hyundai in a single production line and plant will result in economies of scale for the KIA brand and allow it to continually focus on designs and marketing for new products. THREATS 1. Competition is becoming stiffer 2. Direct exposure to sharp changes in the price of raw materials or OEMs not manufactured by KIA could have a positive or negative impact on bottom lines and prices that hitherto used to be a selling point. 3. Vulnerability to natural disasters similar to that which affected Toyota in Japan. 3 Cs Analysis Company The marketing strategy of KIA as already mentioned above is directed towards meeting the needs and desires of its target customers. Marketing mix Product – Kia introduces a new model after about 18months of the last model launch which usually comes with an improvement with respect to interior and exterior specification which is meant to compete with other brands entering the market. The stages of the product life cycle being introduction stage, growth stage, maturity stage and decline stage. Therefore at introduction stage, sales are just beginning to gain momentum, awareness and education of customers on the product is just being done and the customer is beginning to take purchasing decisions. At this stage, Kia engages in aggressive and catchy adverts and mono fairs across countries to persuade potential customers to buy. And it can be said that Kia brand has an average life cycle of 3 years after which the customer is ready for a change of car. At the growth stage when Kia car owners have clocked 3 years on their former purchase, a lot of them are willing to buy the new model that has newer options and sales continue to climb at this stage, but at maturity, sales peak, and begin to decline which is when sales and profits are likely to decrease. Therefore, the organization upon studying the pattern of sales on the large variety of brands they have, adopt a production mix that emphasizes manufacture of higher selling products than products that have lower sales. Pricing – The company adopts different pricing for their products at different stages of their product life cycle by placing higher value on vehicles at introduction stage and depending on market response adjust the prices accordingly, however in order to penetrate the market as quickly as possible and deeply before competitors, it adopts the penetration pricing strategy. Also for each brand of car model, prices differ to allow consumers to decide at best suits their lifestyle and needs, for example, the Rio has 3 variants and with different prices from which a customer can choose from. However, the price of Kia vehicles ranges from $8,000 to $36,800 with the Picanto being the lowest of the range and the Sorento tops the range of products. Place – Kia is headquartered in Korea but has networks and is well represented across the world through 4000 dealers, 20 subsidiaries and 141 distributors with further expansion still ongoing. Dealers could make or mar the brand, and therefore, Kia ensures there is uniformity in the outlook of dealerships across the world, while ensuring standards are strictly adhered to. In trying to ensure customer service are not compromised, it is necessary for them to generate feedback from customers across the world concerning their Kia experience at all dealerships and also recognize those known to uphold the Kia standards. Promotion and Branding – Kia, in the last 10 years has spared no costs creating awareness of their products to the consuming public. Using not only the traditional approach of promotion and advertisement but also the use of social media and electronic digital marketing. The use of social media allows it to constantly connect with younger generations and enable it to receive and give feedback as efficiently as possible. At the introduction stage of a product is when large amounts of funds are invested in promoting to make consumers aware of the new product and its benefits. The company’s websites are also well developed to promote and advertise their products. They also get involved in endorsements and sponsorships of major events, sport teams, athletes, charity events etc. that they believe would sell the KIA brand. Kia has introduced a number of novel ideas into the automotive world market and have allowed the brand to be built since it was launched to the United States market in 1992 and to the rest of the world riding on the slogan â€Å"Power to surprise†. Its major emphasis on Design has also allowed it to carve a niche for itself in the market and the evolution of the brand. Therefore, they safely assume brand recognition has been achieved while not resting on its oars to gain market share by continuing to establish the best customer relationships. The branding strategy being deployed by Kia so far can be termed to be successful allowing it notch the 87th position on the 2012 Interbrand’s Best Global Brands survey far behind its benchmark competitors, Toyota at No 10 and Honda at No 21. Customer KIA’s marketing strategy is formulated in such a way as to address to 2 significant issues which the organization revolves round. Which customers do we want to serve? How do we intend to create value for the customers we want to serve? To answer the 1st question, KIA embarked on a process of market segmentation through market intelligence across 4 variables namely – geographic, demographic, psychographic and behavioural. Diagram 1 – Market Segmentation The 2nd question in formulating its marketing strategy is market differentiation and positioning which is being done through its major focus on its core strength which is cutting edge design and style. In 2006, Peter Schreyer, an award winning designer came on-board as Kia’s Chief Design Officer thereby completely turning around the entire product design line since 2009 to date and making KIA a world renowned automotive brand. Kia Motors UK is differentiating the product within the market by selling with a 7 year warranty that can be passed on to whoever the vehicle is transferred to, this is a novel and one of its kind in Europe. In Nigeria, Kia workshop is open Mondays through Sunday to cater to working class people that are unable to bring in their cars for service during workdays. Therefore, the KIA’s customer is the average middle and upper middle class with an average age of 40, upwardly mobile, male and female looking for the best value for money and located in all parts of the world. Competitors Kia’s major competitors are Hyundai, Toyota, Ford, Chevrolet, Vauxhall. Toyota continues to lead the pack due to its high resale value that cannot yet be matched by Kia and also its reputation for safety. The selling point being adopted by this company to achieve competitive advantage is a better price offering, i.e better price for better styled product. However, the Kia brand is not yet known in major global cities and it is a known fact that they are lacking in global awareness for which the organization is already positioning itself to address. Inspite of being presently owned by Hyundai, Kia is still being seen as competition. Since the recession, Kia has stealthily grown its market share coupled with the Tokyo disaster which stalled Toyota production for a period, this allowed for a high growth rate for the brand in the last 5 years, but with the recent pick up of Toyota, Kia is likely to have a tough time in maintaining this growth rate which stood at 27% in 2010 against industry averages of 12%. Therefore, they continue to invest in capital expenditure, building of new plants, re-inforcement of the design centers to be able to churn out designs that would continue to project a dynamic and youthful brand, aggressively market and expand its presence across the world. CONCLUSION The business and marketing strategies of Kia are well aligned as analyzed above which is responsible for the success they have continued to achieve over the years as reflected in the gradual brand acceptance globally. Kia is customer and market oriented, it does not pay lip service to its goals and mission of ensuring it delivers excellent customer service and also getting to the top 3 automotive organization even though it may seem as an unachievable task, it still continues to position itself to bridge the gap. It is recommended amongst others that Kia improves on quality of its products, availability of OEM parts and spare parts, access to after sales service and all other factors that make the brand more attractive and also increase on its resale value which is presently nothing to write home about presently. It should also from time to time gather information on which cars are receiving more acceptance and ensure they are produced in quantities that would meet customer needs. As we speak, the Sportage is doing very well but supply remains low to meet up with demand. Kia also adopts the use of market share as a measure of brand equity measure which according to Aaker(1996) to be deceptive especially since Kia prices are lower relative to market prices, therefore it is also advisable to measure the relative market price at which the brand is being sold compared to industry market price. REFERENCES 1. Aaker, D. A., (1996) ‘Measuring Brand Equity Across Products and Markets’, California Management Review, 38 (3) pp.102-120 2. Interbrand, (2013) Best Global Brands 2012: The Top 100 Brands, Available at: http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012-Brand- View.aspx, (accessed: 14/10/13) 3. Kia Motors Corporation- Company Profile, Information, Business Description, History, Background Information on Kia Motors Corporation [online] Available at: http://www.referenceforbusiness.com/history2/74/Kia-Motors-Corporation.html [Accessed 14 October 2013] 4. Kohli, A. J. & B. J. Jaworski, (1990) ‘Market Orientation: The Construct, Research Propositions, and Managerial Implications’, Journal of Marketing, 54 (2) pp.1-18 5. Yu R.(2011), â€Å"Focused, feisty Kia bears down on its competitors† (online) Available at http://usatoday30.usatoday.com/MONEY/usaedition/2011-06-28-Kia_CV_U.html, (accessed 16 October 2013) View as multi-pages