Counterparty Risk In Sukuk Example For Free - Free Essay Example

Sample details Pages: 21 Words: 6160 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? In sukuk, credit risk means that the probability of an asset or loan becomes unchangeable due to a failure or delays in payment and if the correlation involves in engages by written agreement then the counterparty risk is the probability that the counterparty rebound on the situation of the delegate. Other than that, the outcome can be tough with a fall in the value of a banks assets and credit and counterparty risks essential in Islamic finance. They are one and lone due to the essence of Islamic financial instruments that somehow to be transformed to the basis of the Sukuk asset collective. Don’t waste time! Our writers will create an original "Counterparty Risk In Sukuk Example For Free" essay for you Create order Meanwhile, it has a different in conventional financial institutions and Islamic banks no need to access to the derivative instruments and other credit risk management mechanisms due to Sharia thoughts. Major Sukuk issuances have mostly bear on assets based on Ijarah, Istisna, Salam and Murabaha contracts. Other than that, there is several credit risk considerations joined with these modes of finance. Firstly, Salam contracts are bare to the risk that goods will not be endow on time or will not fulfil to the deal allotment and besides that Istisna contracts entail in performance risk. The client of the bank may fail on the conditions of the contract and the subcontractor may fail to make the vital services. In addition, there is also a coupon payment risk that connected to Sukuk and in case the obligor fault to clear all the payments of the demand coupons on time given. However, the asset reclamation risk might be arising as the underlying assets and might not be amply redeemed wh en the originator has to buy back from the certificate holder. Besides, there are also specific risks connected to the SPV such as the belief of making a payment risk entailed with the SPV where the maker need to repay back the certificate holders through a clearinghouse. Apart from that, the Sukuk coordinate are bared to a liquidity risk. Presently, sukuk coordinate do not have good structured and adequately aqueous derivative market and many of the credentials cultivate to be held until maturity. In addition, the hidden assets of the Sukuk credentials are also refer to a risk of shortfall which is a crucial risk in the case of accoutrements and massive degrees arrangement and yet there is a potentiality to lessen the risks of asset losses by using purvey for assurance to redeem back in the mould of Takaful. Types of Investment Sukuk Description of Investment Sukuk Shariah rulings and requirements Salam certificates These are documents of equal value issued for the sake of mobilizing Salam capital and the items to be delivered on Salam basis are owned by the certificate holders. Issuer: Sells Salam commodity Subscribers are: Buyers of that commodity. Mobilized Funds: The purchase price of the commodity, which the Salam capital. Certificate Holders: Entitled to the Salam commodity and the selling price or the price of selling the on parallel Salam basis if any. Istisnaa certificates These are documents that carry same cost and are addressed with the attempt of mobilising the funds required for producing a certain item and the items to be produced on Istisnaa basis are basically possess by the certificate keeper. Issuer: The manufacturer or supplier. Subscribers are: The buyers of the item to be produced Mobilized Funds: are the cost of the item Certificate Holders: Entitled to the item or the selling price of the manufactured item. Murabahah certificates These are documents of same amounts are addressed for the aim of financing the Murabahah commodity and the authorization holders will become the proprietors right of the Murabahah commodity. Issuer sells: Murabahah commodity Subscribers are: buyers of that commodity Mobilized Funds: the buying cost of the commodity Certificate Holders: Basically stand alone by the Murabahah commodity or the price of selling it. 3.9.3 Shariah Compliance Risk There are a lot of disadvantages of Shariah compliance risk in sukuk. Shariah compliance risk means to the failure of asset cost as prove of the issuers break of its fiduciary responsibilities with honors to obedience with Shariah and there might be a number of such instances of deliberate or acquitted breaches. Besides, the closure clauses or syaria jurist of the Sukuk announcement describe issues that will officially make the Sukuk exploit invalid and annulled due to Sharia non-compliance. For example, if the Sukuk is based on a hybrid of Ijara and Istisna assets, Ijara must always more than Istisna in the pool, otherwise the Sukuk deed will disperse and thus approximately speaking, Sharia compliance risk must be defined as a rate of return inevitable in comparison to the market rates, as a result of complying with the Sharia. Hence, the issue of competitiveness and survival in capital markets as a Sharia complaint the asset class. For example, in the case of occurrence of a Waki l or the  warrantor and the agent need to be unconnected entities to disprove any battle of interest and moral hazards. However, Islamic finance is an economic model imitates the essence of a faith that is a way of life for Muslims. Therefore, the pressure to keep alive the nature of Islamic financing in a Shariah compliant way remains powerful and the Sukuk structures must not only imitate this but also preserve competitiveness. Often it is the case that a fine balance is affect between Shariah conformity and project viability considerations to the degree or extent that jurists and Shariah consultants play a constantly vital impression in the classify of the Sukuk thought. For your information, there are a number of discrepancies regarding the applicability of Islamic financial instruments against the different schools of thought as well as the legal regimes in which the Sukuk are issued such a theoretical ambiguity would pose further operational risks that the Islamic bank might be run post nominal of Shariah jurisdictions. For example, the theoretical applicability of the Murabaha contract varies between different schools of thought and various jurists such as the Organization of the Islamic Conference (OIC) Fiqh Academy concur that the Murabaha contract is binding on only the seller of the contract and not on the buyer but other jurists hold the prospect that both the parties to a contract have an equal obligation to the terms of the contract. However, it is notable that financial engineering has made it possible for Shariah positions to join together. For example, a few years ago, floating rate Ijara was not broadly conceivable to be Shariah compliant as, according to the Shariah principles, the originator can only guarantee rents (returns) on the fixed return underlying assets. As mentioned above, fixed rate Sukuk face serious matters of market risks nowadays and to match the market requirements of Sukuk to be floating rate, the Shariah r equirements of rents must be in the fixed rate and the Ijara Sukuk are based on a Master Ijara Agreement with numerous subordinate Ijara agreements. Besides, in the subordinate Ijara contracts, the rents are revised semi-annually in accordance with the market benchmark. This is to ensure the rent is fixed for 6 months and floating at the same time. Major Ijara Sukuk likes Gutherie, Malaysia, Qatar, Saxony-Anhalt and so on are based on this marriage. Other than that, the investors might still have some matters in interest rate risk to a certain extent and they would be unprotected in the event that the floating rate rises to a level higher than the fixed rate of the underlying assets. Since the originator can only guarantee the fixed return on the underlying asset pools, the issue of floating rate returns still maintain disputatious, particularly in pooled hybrid Sukuk. So, the only major issuer to offer fixed rate distributions is the IDB which continues to face the underlying ra te of return risk. Another example relates to the liquidity facility. Liquidity facility is something likes a letter of credit,  standby bond purchase agreement  or other arrangement used to render liquidity  to purchase  securities or accommodates funds to the agent or its issuer to buy the securities that have been  tendered  to the  issuer  or its agent but which cannot be immediately or directly remarketed  to new investors until such time as they can be remarketed and the provider of the liquidity facility is typically a bank. Besides, stipulations for a liquidity facility to abate lags between payments to investors and returns on the underlying asset pools have been analyzed by the prospectuses of the sukuk. Some liquidity facilities have been formed to permit the trustee to make some advantages to the facility for any liquidity deficit ensuing from default in the Sukuk asset pools and the imbursement of the liq uidity services have been provisional upon surplus funds after the distribution of coupon payments to the Sukuk holders. However, it has been suggested by Shariah scholars that the sole purpose of such a liquidity facility should be to easily out delays between investor payments and returns on the underlying asset pools and the importance of such a liquidity facility can most efficiently be accumulated where the arrangement has floating rate payments because of the fixed rate returns would give the non-existence of interest rate differentials. A third example of the shariah compliance risk is that the functions and the relationships of special purpose vehicles (SPVs) and other third party agents. In the occurrence of a wakil or agent of the guarantor, wakil have to be separate entities to countermand any conflicts of interest and moral hazards. There also had been proposals to appeal to two SPVs in several instances instead of one. In this case, the first SPV would have to manage the financial obligations of purchasing and reselling the underlying Sukuk assets to the second SPV that would be a trust with the purpose of issuing the certificates. However, Shariah considerations prefer a single streamlined SPV that would perform in both functions of financing the transaction of Sukuk assets and servicing the trust certificates for the investors such an SPV should have foregoing experience in financial markets and they also should to remain independent of the originator. In the nutshells, what can I say here is the association of Shariah supervisors with Sukuk issues will guarantee investor confidence? The answer definitely will be yes. However, the convenience with which the Shariah compliance requirements can be married with the conditions of market competitiveness will remain a great challenge for the Sukuk issues. 3.9.4 Operational Risk Operational risk is a  form of  risk that summarizes the risks of a company or firm undertakes  when its try to operate within in their area or industry and operational risk is where the risk that is definitely not inbuilt in budgeting,  systematic or market wide  risk and whereas it is the risk that remaining after  crucial financing and systematic risk and it also includes risks resulting from  breakdowns in internal procedures, people and systems. However, there are several other risks definite to the process of the Sukuks and these risks mirror those continuances in conventional bond markets and are operational in the sense that they are inherent to the structure of the issuances rather than the underlying Islamic principles. Operational risk is divided into six risks which are default risk, coupon payment risk, asset redemption risk, spv specific risk, investor specific risk and lastly risk related to the asset as following: Firstly is the default risk which every prospectus has provisions for the termination of the certificate in the event of a default by the obligor and in case if the obligor fails to pay the rentals on the Ijarah agreements that form the coupon payments, the certificate holder can exercise the right to abolish the agreements of the contact and force the obligor to purchase back all the assets .Furthermore, certificate holder also can exercise the right to take legal action and force the obligor into debt rescheduling proceedings in the event that the obligor fails to compensate the principal amount of the certificate holder . Secondly is the coupon payment risk which the obligor might be fault to make a payment on the required coupons on the due date given and any delayed coupons will be subject to a specified payment amount that will be accumulated with the special purpose vehicles (SPV). However, these accumulated funds are suggested by Shariah councils to be donated for charita ble purposes. Thirdly is the asset redemption risk where the originator has to purchase back the underlying assets from the certificate holder. Furthermore, the principal amount paid may not be same to the Sukuk issue amount and as a result, there is the risk that the assets may not be fully redeemed. Next, the special purpose vehicle (spv) is generally designated to be a standalone institute that is bankruptcy or black list remote from the originator. However, there may be a view of resolution risk involved with the SPV in that the originator will have to network the payments through a clearinghouse and then the certificate holders will be compensate through the clearinghouse immediately. Another risk is the investor specific risk where the certificate holder is contributed to some of the risks that are applicable to Sukuk structures and these are primarily with respect of liquidity issues. Besides, the Sukuk structures, they are welcoming in dealing with liquidity managem ent issues in Islamic finance where the Islamic finance is revealed to a liquidity risk. Currently, there are related to liquidity risk because mainly its does not exist a good structured and sufficiently liquid secondary market. In addition,as we know the certificates are listed on several local markets but this alone does not signify their liquidity and the Sukuk certificates are medium to long term in maturity and their continued success will definitely depends on their ability to develop into highly liquid means of fund investment with adequate risk management mechanisms. However, as is the currently the case, all of the certificates be liable to remain until last of their maturity. Last but not least, Risk related to asset is the concealed assets of the Sukuk certificates where this risk is are similar to other risks as well and mainly there is the risk of loss of the assets and these are minimal with regards to Ijarah assets of land parcels. However, in case of equipment an d massive scale formation typifying some of the underlying IDB assets the risk of loss may not be so insignificant. Nevertheless, Islamic finance has Shariah compliant provisions for insurance claims in the form of Takaful and these arrangements might have to be utilized to diminish the risks of asset losses and as it is related to the asset risk as well is the need to maintain the structures of the assets. Besides, proper maintenance will certify capable returns to the certificate holder and according to Shariah principles, the SPV will usually be required to bear the responsibilities on ensuring asset structure maintenance. 3.9.5 Institutional Rigidity Sukuk as we know is originate from developing countries and the financial infrastructure in some of these countries such as Bahrain and Malaysia are well developed but generally this infrastructure is delicate in most emerging economies. In our country Malaysia, sukuk are already used by Muslim and also non Muslim. It is not something new in this era. In addition, Sukuk require unique Shariah compliant structures and this creates a state, which can be termed as one of institutional rigidity and which cannot be removed in the short run, habitually it will raised the risks of Sukuks. The features of this state that having the matters are likes: Lack of hedging and financial engineering processes. For your information, hedging is making an investment to lower the risk of opposing price movements or drive in an asset. However, normally a hedge made up of taking an offsetting situation in allied to the security likes a futures contract. Non-existence of interbank money markets. Lack of best practice uniform controlling standards and commands. Weaknesses in litigation and legal framework support, particularly, in the treatment of default Non-uniform accounting, auditing and income and shortfall of recognition systems Non-strong investment assessment, promotion and monitoring infrastructure Ineffective external credit assessment systems Undeveloped state of financial markets Weak inter-segmental support and lost in connections. For example, without life insurance coverage the credit risk of a client is sure to be high. This is one of the important risk factors faced by Islamic banks due to non-existence of comprehensive Islamic insurance coverage. 3.10 Calculation Mechanism Sukuk profit is coming fromÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦.. As Shariah think about money to be a assessment appliance for cost and not stand for an asset in itself but it also need to stand in need of that one may not be accomplished to take income from money by itself. For your information, this self assurance of capital from money is known as Riba, and is obviously not allowed and now we already know that a lot of people misused their powers and keep doing these illegal activities but in sukuk we really take serious of this matter. However, some note that it is the money lending interpretation that is the more relevant for example when interest is applied in an unequal manner that can make or force individuals into debt traps and also a revolution of hardship and this already not special to Shariah as many non Islamic countries have extortion laws. In making a profit in sukuk, there also have the presumption for Islamic financial institutions and securitisations that the selling of claim or receivables without the hidden asset for par is not allowable. However, we need to take noted that some of the extant in Sukuk and somehow some of the Shariah boards arise to approve that as long as receivables are in a small part of the all embracing income flows and their existence is acceptable even though there is some alteration in the meaning of little. For the second point that have been raised by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is that they offensive the trading of receivables or claims as such in both of the Sukuk securitisations was seen to the due date so the physical assets such as land and properties are going to bring about the cash flows and also have been rendered to the investors as well as the payments or receivables due on those assets. If Tamweel or Sorouh PJSC is going alter to impoverish so the legal ownership of the properties and land might basically in with the investors. In addition, Institutions likes AAOIFI and the Islamic Financial Services Boa rd has an important part to caper in working together the different parties in an organised fashion to argue the affair and attain an agreement that will eventually lead to adequate standardisation to achieve the common long term goals of Islamic finance. Besides, in the censured Gulf Sukuk structures, there is naturally a rent or lease management income derived from the asset. However, under the Ijarah rent type affinity so the company obviously will agrees to make a payment on the given time to the Sukuk holders salary for applying of the asset and these will form the periodic fixed income flow that imitate the coupon in a conventional bond. However, in other structures likes Mudarabah and Musharaka, there might be several capitals that flow from the assets that are going to pass through to the Sukuk holders to make a payment for the profit. However, if there is an extra income officially it is taken as an encouragement fee or if there is a deficit, the maker has basically has an obligation to make a payment to the changes of the differences. The third AAOIFI principle come into view that they will stand to this practice and hinders the payments or loans if there is a loss in the expected earnings. Thus, same with the purchase responsibility and what we were talk over below, the investors again will depends on the corporate or bank to pay back their profit but not based on the underlying assets. How do we can calculate the profit rate from Sukuk? Do you think that sukuk will be a model to the conventional bond market? In our analyses, the answer definitely will be yes. Many people keep questioning how a Shariah compliant, non interest aspect the appliance might be recognizing in opposition to London Interbank Offered Rate  (LIBOR). For us, to use an analogy, for example if I have a building and lease it out to renters at a rate based on market forces, market forces might be stand for by a formula which may comprise all the cost of borrowing. Nowadays, we live a life in a worldwide economy where the amount of tale on loan influences even what we pay for our day to day provisions. However, there is therefore did not effect in referencing revenue to LIBOR as long as the asset that is appropriate is a Shariah compliant asset and it has been prove when the enormous most of qualified scholars hold up this observation or view. Another thing that we are forbidden to do is to give or lend money with the purpose to take money in the future at a profit or in the form of interest. Nowadays, most o f them like to lend money with a high interest but in Islamic law that is not the one trade that may advantage civilization as you are going to make a capital out of capital, as follows honestly speaking, the rich become richer and the poor become poorer. In addition here, there constantly has to be an hidden buying and selling behind it in which case you may absolve a blemish up or revenue rate and in Islamic law also advises us that we cannot trade money. Generally, capital is absolutely a medium of exchange and not a goods itself that might be traded. Pricing of Sukuks with Embedded Options How we are going to pricing sukuk with embedded option? Embedded option means a bond can be valued similar to the valuation of selection on equities by implementing binomial trees. In conventional bond issuance the value of the underlying assets will base on the level of interest rates whereas in Islamic contracts interest rates are substituted with the rate of return on the underlying assets. We can analyses the valuation of embedded options using altering scenarios in a tree diagram. Assume that futures one-year rates of return develop are as follows: YEAR 0 1 2 3 8.10 7.50 7.00 7.25 Rates 6.50 6.50 6.00 6.25 5.60 5.10 The represented tree can be utilized to value zero coupon certificates of various maturities. For example, the value of a 1-year zero coupon bonds at time 0 is B (0, 1) = 1/1.065 = 93.89 % of par value The value of a 2-year certificate at time 0 can be determined using the same discount mechanism. The value of a 1-year zero coupons at time 0 can be calculated as: If r= 7.00 1/1.07 = 93.45% of par value If r= 6.00 1/1.06 = 94.34% of par value As a result, an investor who owns a 2-year zero coupons knows that the investment will be worth either 93.45% of par value of 94.34% of par value in one year. If the probabilities of the two scenarios altered for risk are known then the investor can value the two year zero coupon bonds accordingly. Assuming 60 percent for r=7.00 and 40 percent for r=6 we can infer the value of 2-year zero coupon bond to be: B (0, 2) = 1/1.065 x [(0.6) x 93.45 + (0.4) x 94.34] = 88.0807 % of par value The estimate of callable bonds will appeal an adjusted technique as the callable bond is basically a portfolio of a non-callable bond and an American call option written with the non-callable bond as the underlying and a raid the price that is given by the call price. Accordingly, at each bulge of the tree the value of the bond can be given as follows: P = 1 + C at maturity P = max [CP, (1+C)/(1+r) ] one year prior to maturity P = max [{CP, 0.5 x (Pu + Pd) + C} (1 + r)] more than one year to maturity CP = price of the option C = coupon r = rate of return Pu = value of the certificate in one year if return goes up Pd = value of the certificate in one year if return goes down 4.0 Conclusion The overall finding of this research included in this study is clearly understood thorough the conclusion of this report that Sukuk, as mentioned earlier, has become a very important instrument worldwide over the past decade and it has been accepted not only by the Muslim investors but also by the many non-Muslim investors across the world. Its characteristics have allowed it to give a competitive advantage over other influential in the Islamic Capital Market. There are other advantage of Sukuk for the economies and financial markets in terms of discipline and more financial stability. Hence, the purpose of this work research did not extend beyond examining and analyzing issues which are very important to the future development and enhancement of the Sukuk industry. It is expected that Sukuk will encourage many Muslims world-wide to participate in financial markets and hence will be instrumental in expanding these markets, particularly in the evolving countries. In this research we analyzed a number of issues related to the evolution, underlying principles, structures, risks and competitiveness of Sukuk as Shariah compliant substitutes to traditional fixed income financial assets. Other than that, the evolution of the sukuk market in our country, Malaysia might be result in extensive and wide-ranging measures which include the creation of an effective issuance manner and it will increasing the price discovery manner and agreement system, enacting a method bear, developing the investor base, advertising liquidity in the secondary market, and protecting the lawful, arrangement and Syariah composition. The foundations for the allowable development of Islamic finance in general and the Islamic bond market in particular are now in place and it is hoped that current incentives and measures under the MIFC initiative as well as other internal and external factors, will encourage local and international financial market players to become MIFC service providers. By doing so, and by making Malaysia as their regional hub, these players might definitely boost their market attain and blow up their buyer satisfaction bases within this region. The observation of our research in sukuk is made on the basis of the following points like firstly, the essential employment and objective of the Sukuk issuance is to outfit way of bargain in the capital and money market sector to all society Muslim investors as well as non Muslims. However, for the Muslim investor they will make them harmony of mind, security reliance are high and focus attention on this thing. However, until mid 2008 the international Sukuk market was driven mainly by corporate issues or qausi-sovereign mostly without implicit government guarantee while sovereign Sukuk were few which had resulted into imbalance and hurdle for issues such as creation of bench mark yield curve. Since then, due to the financial crisis, the international Sukuk issuance trend has shifted towards Sovereign or f ew multilateral agencies issuances mainly due to better quality safe heaven reasons. Furthermore, there has been limited investors appetite for corporate risk. As regard to the issuances of Sukuk at the domestic level, the analysis shows that Malaysia is ahead. However, with consider to the growth in both international and domestic Sukuk issuances, the conclusion reached based on this study is that, until 2007 there has been high growth in both international and domestic Sukuk issuances, but the growth pattern was twist by the credit crunch. Nevertheless, in first half of 2009 the growth trend again showed sign of recovery and the market may have witnessed a stead reversal in Sukuk issuance if it was not hit by few troubled Sukuk issues. Tenor wise international Sukuk is mostly confined to 5 year tenor and there are just a couple of long term Sukuk which again high light the need for having balance between short, medium and long term tenors more for secondary market development purposes. At international level the Ijarah Sukuk is the most broadly used followed by Musharakah. During mid 2008 to mid 2009 the market witnessed the issuance of Sukuk dominated by Ijarah organize where issuance by Government of Indonesia of its retail and sovereign Sukuk are good examples. However, exchangeable or convertible and Hybrid Sukuk structures have also emerged as one of the potential growth drivers due to their innovation possible and also equity market link. Finally, the market situation and AAOIFI Shariah panel finding had affected the Musharakah and Mudarabah Sukuk issuance. However, we are of the view that the evaluation and the development of Sukuk is counted on to carry on which necessitate more and continue effort and improvement in many of its aspects. Admitting the challenges facing Islamic securitizations and bonds, there are likes to be a tough desire to overcome with explanations that will global up these product locality and numerous of chief investment banks and law firms are digging hard to find Shariah-compliant matters. However, to the liable investor appetency in the Gulf region and in the Far East for Halal investment chances and they require of many Islamic financial institutions to securities their hidden financings, we have faith in that overcome might be swiftly advanced that issue these arouse and these markets will establish abundant ground for all contributors. The recent trend shows that the Islamic Capital Market has grown and has drawn increasing interest from among the market players. This has motivate the need for creating appropriate measures in recognizing and measuring transactions relating to the issuance and investment of Islamic bonds to ensure compliance with Shariah Law. Hence, in response towards this need, AAOIFI has issued a new standard, FAS 17 which covers Islamic investments including Sukuk. Based to the standard, Islamic bonds should be categorized into three categories according to investment i ntentions, rather than two categories in accordance to the period of holding as is the practice in the traditional accounting. The classification of Islamic bonds is made to promote public maslahah or interest as underlies in the determination of zakat. Further, the standard states that the recognition for investment in Sukuk and shares shall be made on the acquisition date. In terms of its measurement, Islamic bonds should be measured at historical cost rather than fair market value. The standard also specifies the necessary requirements for Sukuk disclosures. The goal of these termination requirements is to ensure that adequate disclosure is made by the issuer of Sukuk for the purpose of assessing whether or not it complies with Shariah Law. In the effort to position Malaysia as a premier international Islamic financial centre, the Malaysian government has to encourage the private sector to be more effectively. The market for Sukuk authentication continues to grow and an import ant facet of this growth is the increased number of sovereign issuances typified by those issued by Malaysia, Bahrain and Qatar and, interestingly, Saxony-Anhalt in Germany. These certificates are appealing to global investors without having too much bearing on the underlying Islamicity of the certificates. Accordingly, Islamic secondary markets receive a boost because such sovereign issuances and the subsequent attraction of global investments encourage increased corporate confidence in their private issuances. Nevertheless, Ijarah Sukuks continue to hold as the most popular manifestation of Sukuk certificates. This is largely in part to their unambiguous Shariah conformity and familiar leasing formulae. However, leasing contracts on underlying real estate properties cannot single-handedly support the growing diversity of Sukuk investors. With increased global investors there will be a myriad of investment needs and thus other avenues of Sukuk issuances should be implemented to sat isfy these demands. Istisnaa, Mudarabah and Musharakah certificates are established as part of the AAOIFI standard and can be garnered to offer a plethora of Sukuk structures. The recent Sukuk issuance by the Islamic Development Bank serves as an excellent case study in this regard with their Shariah compliant diversity of investments. With the rapid emergence of Sukuk markets, risk management considerations have also come to the vanguard of the industry. Novel financial instruments bring with them original financial risks. An analogous situation represented itself in conventional financial markets in the early 80s with the emergence of interest rate derivatives to hedge against the financial risks of bonds. With the globalization of financial markets and increased convergence of Islamic finance and conventional markets, indirect interest rate effects as well as other financial risks will necessitate the development of Islamic financial risk management techniques. Derivatives are inherently against Shariah considerations because of the uncertainty associated with them that amounts to Gharar. However, we have discussed the possibility of extending the functions of embedded options to fit the needs of Sukuk certificates and Shariah considerations. This facility also provides a debt structure framework that helps to regulate the functions of traditional instruments in turn benefit from the convexity gains of these instrument. Firstly, there are no markets for liquid interest rate derivatives and secondly, interest rates are fluctuations lead to significant gain in credit risk and lower the bonds price. Accordingly to these statement, investors in emerging markets is suffering from the negative effects of volatilities but cannot benefit from the positive side and such benefits have been garnered in conventional emerging markets such as in brazil where the interest rate volatilities is the 90s warranted a protective cushion against these fluctuations in the f orm of putt able and callable bonds these debt structures can be transferred to the sukuk issuances in accordance to outstanding shariah concerns. However, in conventional markets, investors have also garnered the positive effects of swaps between different interest rates, exchange rates and between floating and fixed rates. Again, the feasibility of swaps in Islamic markets has been in contention as they are deemed to contravene Shariah considerations. However, the emergence of Sukuk certificates as mechanisms of liquidity management presents a novel asset-backed securities structure that can set the foundation for supporting risk-management derivative instruments. Our discussion centred on the viability of a swap between floating rate Sukuk (FRS) and fixed rate zero coupon embedded Sukuk (ZCES). Needless to say, the limit is not here. According to the standard, Islamic bonds should be classified into three categories according to investment intentions, rather than two catego ries in accordance to the period of holding as is the practice in the traditional accounting. The classification of Islamic bonds is made to promote public maslahah or interest as underlies in the determination of zakat. Further, the standard states that the recognition for investment in Sukuk and shares shall be made on the acquisition date. In terms of its measurement, Islamic bonds should be measured at historical cost rather than fair market value. The standard also specifies the necessary requirements for Sukuk disclosures. The goal of these disclosure requirements is to ensure that adequate disclosure is made by the issuer of Sukuk for the purpose of assessing whether or not it complies with Shariah Law. In the effort to position Malaysia as a premier international Islamic financial centre, the Malaysian government has to encourage the private sector to be more innovative in developing products and services that are in line with Shariah. It is also imperative that the accou nting practices adopted in the recording and reporting of Islamic bonds fully conforms to Shariah requirements and principles. Islamic scholars must continue to work with the financial professionals so that the knowledge gap between them can be reduced. In the future, empirical research should be carried out to compare the accounting treatment adopted and the reporting practices of organizations issuing Sukuk in Malaysia. It will also be beneficial to investigate the main differences between the practices adapted to account for Sukuk and the conventional bonds under the traditional accounting system. The sukuk market delivers a lot of advantages to both issuers and investors. Issuers can advantage from the bulky rose in liquidity in the Islamic world and also may beat on these new sources of funds. Rising funding from the Islamic bond market in the current environment has been 10 to 20 basis points lower than mainstream bonds. Numbers of multilateral that arise in agencies are is suing sukuks to finance development projects. In addition, both government agencies and the corporate sector have considered the sukuk market as an attractive source of financing. From the investor point of view, there are the benefits of diversification. In a sukuk issue in 2005, 48 per cent of the issuance was subscribed by conventional-based investors. This increased appetite for sukuk reinforced by excess liquidity in the global financial system is part of the reasons sukuks are attractively priced for issuers. The other benefits of investing for sukuk instrument is, firstly sukuk are valued aggressively in channel with conventional bond issues. Secondly, sukuk generally have better risk profile. Next, sukuk are contractible and fill the need for Shariah compatible tradable instruments. Lastly, short term Islamic financial market can benefit from Sukuk. In the nutshell, Sukuks provide an important research agenda for the future. Our research only clearly covers some of the important points. There is more work to be done and these topics can be expanded upon in further studies.

Music And Its Influence On Music - 1590 Words

Introduction: Music is a very telling form of expression. Whether it is the lyrics themselves, the tone in which they’re said or the rhythm of the music, there are many methods in which music expresses the artist’s opinion to his audience. The introduction of new methods of expression in music by tinkering with old methods are how new musical ideas are discovered. In the past, Miles Davis’ explorations into jazz fusion and modal jazz music pushed the envelope. Now, Kanye West’s explorations through samples, orchestration and rhythms shape the direction of music. For both Miles Davis and Kanye West, the fields of music (Jazz and Hip-Hop) in which they have had most of their influence are considered to be predominantly dominated with†¦show more content†¦It accomplishes this through providing first hand quotes from Miles himself as well as quotes from other jazz musicians around Miles, thus also establishing its creditbility. Perhaps the most useful source of evidence comes from the quote French jazz pianist Renà © Urtreger: Miles was proud and touched by the fact that in France, jazz was considered to be very important music. For in this quote we get a context about just how important jazz is to Parisian culture. This can speak to our claim that Miles, along with other black music artists, fit into the role of entertainment to the French. It is only in contexts where the French/ whites decide where black can gain economic success and recognition. In this instance, it was in the case of Jazz where the French deemed important and where Miles crossed over into perfectly. This source also provided some background as to the decreased popularity of Jazz music in American culture during the same time period with historical information. Yet despite all the economic success and fame obtained in Paris, Miles’s opinion on Paris seemed to be a negative one as evident in his soundtrack for the film noir Ascenseur pour l Echafaud (Lift to the Scaffold), evidence introduced in the article but will be discussed later in another source. https://www.youtube.com/watch?v=1OKQdp6iGUk (Primary Source) The primary source of a video of one of Miles Davis’ soundtracks provides a unique twist on the music that MilesShow MoreRelatedMusic Influences On The Music1508 Words   |  7 PagesIntroduction Nowadays listening to music is a widespread phenomenon all over the world. People tend to listen to it on a daily basis wherever they are: in a public transport, gym, shop and etc. As well as bringing the relaxation effect, music can help to concentrate better while studying or working or even bring an inspiration. Moreover, according to scientists, our brain tends to react on our favourite music in the same way as it would react on some delicious food or a psychoactive drugRead MoreMusic And Its Influence On Music Essay854 Words   |  4 Pagesquestion? Music, the idea of using sounds for thoughts. Cultivated music can be defined in many different ways, although it is defines as being music that comes from another country, it is also defined as music that is consciously well put together. The word culture is almost visible. However, the term â€Å"cultivated† brings a deep contrast to that of â€Å"vernacular†. Vernacular can be defined as music of the present place. It will be safe to say that cultivated music carries over into Vernacular music. CultivatedRead MorePopular Music And Its Influence On Music1293 Words   |  6 PagesLastly, I would like to address how popular music controls us to favor popular music. Rather than allowing us to listen to different types of music, such as country music or punk music, popular music conforms us to only listen to the music that is only composed by well-known artists. Popular music restricts us from listening to other songs that are not popular, thus determining what popular music is. First off, what makes popular music popular? The reason to bring this question up is to remind allRead MoreThe Influence of Music1881 Words   |  8 PagesIntroduction to Music GEN1621 Major Writing Assignment The Influence of Music Almaty, 2011 Music gives a soul to the universe, wings to the mind, flight to the imagination, and life to everything. (Plato, 428-348 BC ) Music is inseparable part of our everyday life; we can face it in every corner of our town, on TV commercial, films, radio etc. Music can be understood everywhere, even if you cannot speak the language of other countries, but you move, dance, sing and enjoy the music while listeningRead MoreJazz Music And Its Influence On The Music3105 Words   |  13 Pages Jazz music as we know it today has evolved since the early twentieth century. Its’ evolution is due to the influence of many different players who have added their own styles, interpretations and techniques. Two masters of Jazz who have been a big influence on the music are cornet and trumpet player, Louis Armstrong, and piano player, band leader and arranger, Duke Ellington. Each came from different socio-economic and geographical backgrounds, but both became masters of their trade, reached worldwideRead MoreRap Music And Its Influence On Music903 Words   |  4 Pagesworld that is music there are many genres of music that fall under different categories. One of the more popular genres of music is Rap. Rap music evolved overtime and become more relevant as the years go on, accordingly the culture and other parts of rap changed as well. There a various differences between what rap music is now and what it had been in the past, and it all comes with the changes of the world. Some of the bigger changes in music is the culture that comes with the music, the lyricsRead MoreThe Influence of Classical Music on Modern Music1064 Words   |  4 PagesHow does the classical music influence the modern music? Classical music influence the modern music by styles`s creation, composing and rhythm ,also many artists use elements of classical music in their work, and some choose to quote or replicate it directly. For example,Walter Murphy’s disco hit â€Å"A Fifth of Beethoven† samples Beethoven’s Symphony No.5. The following picture shows The first 5 section is actually quoted from the Beethoven`s sample. It gained a great reaction. There is anotherRead MoreMusic Literacy And Its Influence On Music1208 Words   |  5 Pagesnatural talent are big factors in music performing, it is suggested that a major skill needed for a developing music performer is the ability to sight-read (Paul), which is an important factor in acquiring and expanding music literacy (Gromko). However, music literacy is a compositional ability that requires many different abilities (Gromko, Lehmann and Ericson). In relation to studies on English literacy acquisition techniques, little research has been conducted on music literacy. In what research hasRead MoreMusic s Influence On Music1420 Words   |  6 PagesMusic has changed the way people have looked at others, have acted, and how they see the world today. The beginning of music started when someone discovered that banning on something made a sound. Music became a hideout for people when they needed a place to send their mind. Musicians are the biggest part of the music and making it the way it is. Certain musicians changed the way people started to look at music in the 60s. The 60s were a time for standing up for what the country believed it, a timeRead MoreReligious Music And Its Influence On The Music Industry1388 Words   |  6 Pageslisten to secular music or be entertained by television shows? Music has always been a source of entertainment from the days of ole until today. Music is either spiritual or secular. Secular music c an be defined as music that does not have a biblical message; it instigates promiscuity, violence or any other possible harmful acts. Some say listening to secular music is harmless because it doesn’t influence your spirituality. The music you listen to should glorify God. Music in its original state

Play Report Our Lady of 121st Street Free Essays

Immediate Responses: -Easy read -Incredibly funny -Characters are so unlike one another -The relationships all linked together somehow -Very disappointed by the way they found Sister Rose -Loved the simple flow of the dialogue -Had to re-read several things in order to keep the sequence straight due to the jumping around of the scenes and time. Basic Conflict: The basic conflict of the play is the unsettling fact that somebody has stolen the corpse of their beloved nun Sister Rose. Major Events: -Somebody stole Sister Rose’s corpse Balthazar tells Vic a story about a man who didn’t care that his son had died -Rooftop goes to confession with Father Lux for the first time in 30 years. We will write a custom essay sample on Play Report: Our Lady of 121st Street or any similar topic only for you Order Now -Inez is Rooftop’s ex wife -Gail’s and Flip’s relationship is established. Gail is an actor. -Flip denies his relationship with Gail in front of Inez -The interrogation of Norca by Balthazar -Edwin’s and Pinky’s relationship is established -Edwin sends Pinky out for Yodels at 10:30 in the morning -Marcia’s asthma attack. Edwin takes care of her. Marcia tries hooking up with Edwin. -Norca and Inez speak in the bar for the first time since Norca slept with Rooftop, Inez’s ex husband. Balthazar takes Rooftop out of his confession. * Pinky kisses Father Lux * Pinky returns from getting yodels over 12 hours later. * He admits to Edwin that he spent time with Norca * Marcia expresses her concerns that Edwin will turn into her alcoholic grandfather * Marcia wants to marry Edwin who doesn’t want to leave Pinky alone. * Flip kisses Gail in public * Balthazar confesses that he was the guy who decided to watch a game on television over go ing to his son’s death sight. Major Theme: The major theme/lesson of the play is to always put somebody else before you. If you do than you will learn more about yourself in long run. Environment: The environment of our scene is a bar and grill on 121st street at 2 a. m. in the morning. Sitting in the bar I can see the smoke from the kitchen as it passes the lights on the ceiling. I can smell the fantastic aroma of fried food being cooked out back. I can taste the cold, salty, and seasoned French fries as I bite into them off of Marcia’s plate. I can hear the faint jazz music from the jukebox in the corner behind me. I can feel the cool air conditioning coming from the vents as I stand under them when I get warm. Character My character is Edwin Velasquez. Edwin is a super for a building on 121st street and has a great relationship with some of his tenants. Edwin dresses incredibly mainstream and boring. He hasn’t shaved in 3 months, so his scruff is quite visible and doesn’t waste time doing his hair. Edwin loves to eat Yodels with whole milk, and smoke. Edwin’s not the smartest 32 year old and he had to re-do 2nd grade 3 times. He is a very happy person who has taken on a huge burden that causes him to be on edge almost all of the time. Some people may see this as a bad attitude, but it’s simply a result of always worrying. Edwin has to take care of his little Brother, Pinky, by himself due to the fact that their parents are dead. Pinky is mentally challenged, and it just so happens that it’s Edwin’s fault which really weighs down on his shoulder’s 24/7. He threw a brick through a window after being yelled at by his parents for calling Pinky a retard, and the brick hit Pinky on the head causing permanent damage. Edwin’s most important relationship is the one with his brother Pinky. Their parents passed away several years ago. Social Services insisted on taking Pinky into custody, but Edwin would not let that happen, so he took full responsibility for Pinky. He feels that he owes it to his parents to be the best possible parental figure he can be for Pinky. Edwin’s overall need or desire throughout his life is to be certain Pinky is happy and safe at all times. Edwin does extremely well trying to protect Pinky and know exactly where he is at all times, but Pinky makes it incredibly difficult to do so. In our scene he does not achieve it because Pinky was out for over 12 hours and did not tell Edwin where he was going to be which worried Edwin to death, but it was truly out of his hands. How to cite Play Report: Our Lady of 121st Street, Essay examples

Report on the Loss of Market Share-Free-Samples for Students

Question: Write a Report on the Loss of Market share. Answer: Introduction Nokia is a telecommunication company which was established in the year 1865 but it was acquired by Microsoft in the year 2014. But again the company was sold off to the supply chain of Apple, Foxconn in exchange of $350 million. In the din and bustle of buying and selling, the Nokia Company had reportedly lost 766 million Euro in the year 2016. The cause of the loss has been described by the company as the fall in network sales and the shooting of costs from acquirement and incorporation of Alcatel- Lucent. In the years 1998- 2011, the company was leading in the making of mobile phones but gradually suffered losses owing to the booming industry of smart phones. Apart from the introduction of smart phones, the rise of competitors such as Apple and Android has been accountable for the loss of Nokia ("Our history | Nokia", 2017). With their severe loss in the market the company planned to cut 1700 jobs all over the world in 2009 in order to gradually respond to the introduction of new devices and technologies. This reduction in jobs continued till 2012 as Apple and Android became a major obstacle in the path of Nokia. The reason behind this was that Nokia was more of a hardware company than a software company. They were more focused on the physical components of their product rather than paying attention in the technological aspects. The biggest mistake on their part was to underestimate the significance of software which includes different applications of the mobile phone. In contrary to its competitor Apple, the hardware engineers of Nokia had always dominated the software engineers which resulted in the company to lag behind in technical aspects. Not only that, the company had also failed to understand the importance of transition to smart phones. It can be analyzed that a market survey would have helped t he company to measure the pulse of the target group and launch their products as per the demand of the market (Ciesielska, 2017). Another major fault of the Nokia Company was that they were overconfident of their own brand and products. They had a misconception that even if their entry in the smart phone market is delayed, it will not hamper their sale. They were not successful in recognizing the contemporary brands of the same sector which were not flexible as before. Even after many days of the launch of Apple iPhone, Nokia still did not stop insisting the people that they can win over the competitive advantage with their unique design which failed miserably. It can be contradicted that the adoption of Windows technology had been a mistake on the part of the Nokia company while it can also be said that their own operating system was also outdated and needed modification. In the period of superior technology, Nokia failed to answer the call of innovation which affected their sale and reputation. The deadly combination of overconfidence and underestimating posed a fatal outcome on the company. The most valuable brand in the world became the worst sufferer because of major mistakes on their part (Laamanen, Lamberg Vaara, 2016). Fig: Global market share of Nokia from 2007 (1st quarter)- 2013 (2nd quarter) Source: (Jia Yin, Y, 2015) Consumer Behavior Cultural factors With the diversification of a country, there are several factors which have an effect on the consumer behavior. The cultural factors that have played a part in the loss of Nokia are the increasing use of smart phones and different applications. Although Nokia was a pioneer in the smart phone market but still they could not maintain the leadership position in the market. They could not bring much innovation in their product until 2011 with the introduction of Windows phone. With the introduction of iPhone the whole concept of smart phone was changed which had a big impact on the consumers buying behavior. Moreover, the decision of the company to adopt Windows Phone instead of the trending Android technology could not attract the customers (Vuori Huy, 2016). Social factors Consumer behavior is dependent on the reference and recommendation by a closed group of family or friends. With the increasing use of smart phone applications which are typical of Apple and Android, Nokia could not grab the market with their Windows phone technology and thus lost their potential future market. Moreover, people nowadays are only targeting a specific brand as a result of that Nokia market was threatened in the USA by a generation of customers. This is because people are adopting android and IOS technology more than that of Windows. In fact Nokia was in an advantageous position than Samsung because it did not have to start from the ground position as they already had a established market of smart phone (Alibage, 2017, pg 9- 51). Personal factors The factors such as age, income, lifestyle and occupation of the consumers had an impact on the buying decision of the customers which failed to target required customers of the company. Apple iPhones were stylish and trendy which could meet the high standard of living and thus more appealing to the customers. With the increase in the income of the individuals it has become necessary for them to meet the high standard and Apple is considered as a style statement (Aspara et al., 2013, pg 2-25). Psychological factors Beliefs, perception and attitude vary from one customer to the other. It was a mistake on the part of the Nokia Company that they could not measure these three aspects of their target group. According to Maslows need theory, the level of motivation also influences the purchasing behavior of the consumers. Nokia did not pay attention towards the indulgence of the consumers as compared to their competitors. The learning process of the consumers is dependent on the skills, intention and knowledge which are evolved through constant practice. With the knowledge that is gained about the particular brand, they take the decision of buying the product. The Nokia Company should have measured the psychology of the customers before adopting the technology of Windows Phone. They failed to understand the perception of the consumers towards the Nokia brand and did not make any effort to increase brand awareness. Neither did they work towards the technological advancement of the products (Doz Wilso n, 2017). Government regulatory and economic policies The Nokia products are subject to government regulations which have a direct effect on the business. The Federal Communications Commission maintains a regulatory environment for mobile device and the network services to enhance growth of the particular sector. The government has criticized Nokia for their job cuts in different countries as a result of their loss in the market. They were blamed for not keeping the promise of making a technological hub by keeping research and development jobs. This was responsible for putting a halt to the companys production of new phones. In response to the government blame Microsoft mentioned that they will continue to launch Windows 10 and Lumia smart phones but they were not sure of the new windows phones ((Laamanen, Lamberg Vaara, 2016). Nokia was not so much of a poor company that it would fail so terribly. Even the government had said that they will not intervene by buying the market share of a weak mobile company. Nokia was once the global leader in the mobile phone sector but with the advent of its competitors the company has become no better than a drowning ship. The company had no other option than to shut down as a part of their cost- cutting plan. Previously Nokia was responsible for a major amount of share in the countrys economy and played a role in exporting more than a quarter (Akinsanmi, Ekundayo Okorie, 2013). But with the sinking of the companys fortune, the countrys economy has also been suffering. Moreover, other less popular companies which did not have much effect on the economy of the country got help from the government in order to avoid the trap of Europes financial dilemma ((Laamanen, Lamberg Vaara, 2016, pg 16- 27). Environmental factors The environmental factors that can be taken into consideration are Nokia was technically substandard to Apple, the company was content with their services and they could not foresee the introduction of iPhone. Also they could not keep up with the contemporary innovations which made them fall behind Apple, Samsung and other smart phone companies. They could not understand that their slow response to the adaptation of new technology will lead to such a disastrous loss. Similar to other electronic companies, Nokia also faced the constraints of safe and economic disposal of the used products in an environmentally sustainable manner. There is a chance that in the coming years the company could face the penalty from the laws of electronic manufacturers for disposal of the used devices specifically the use of lithium batteries (Wang, Hedman Tuunainen, 2016). Another environmental factor that affected Nokia Company is the price hike of raw materials and components such as lithium for batteries. Also the rising demand for lithium to be used for other purposes such as in electric cars restricted the supply by increasing the price. Climate change is a major environmental factor which posed a long term threat in the form of global warming. As a result of that there has been disruption in the trans- oceanic shipping which affected the supply chain of Nokia. The modifications in the environmental laws for reducing the emission of greenhouse gases have increased the production costs in the countries and thus affected the cost of Nokia ((Doz Wilson, 2017). The internal environmental factors of the company include management style, organizational culture and climate. A complicated and competent environment of Nokia threatened its existence in the market. There are some external environmental factors such as the practices which are against the laws and norms and the companies involving in such practices can have a negative impact. Nokia was late in taking measures to reduce the energy consumption by the company and ensure that all their materials are sourced ethically. Also they could not keep up with the innovation of the market as compared to the competitors and fell drastically when came to the sale of the products. They stumbled at various stages such as they were unable shift the spending of research and development into such products that had high demand in the market (Akinsanmi, Ekundayo Okorie, 2013, pg 459- 474). Nokias response The CEO of the company had responded by mentioning that although he was happy with the figures but still the problem of headwinds made him worried about the upcoming fall in networks. He stated that they are expecting the network sales to perform as per the market trend. Moreover, he showed confidence in the operation margin of 8-10 percent in the coming year. The company has also signed patent license with Apple with the aim of expanding their business in the near future (Aspara et al., 2013, pg 2-25). This much response was not sufficient on the part of the company. One of the main reasons behind their failure was that they could not measure the need of the potential market and again they failed to respond properly against the justification of their loss. They had launched a new product in 2002 against which Apple competed with new products (Laamanen, Lamberg Vaara, 2016, pg 16- 27). At that point, Nokia failed to respond to the technological advancement and developed applications. Although they had launched a few products but could not make anything unique that could appeal to the customers. It was wrong on their part to respond to the call of Windows in 2011 when they were already on the verge of declining. They should not have trusted Windows at that crucial point when it was new in the sector to regain their lost position in the market. Nokia lagged behind its competitors because they were unable to create the enthusiastic spirit among the customers with their new products as there was nothing unique in the products and thus flopped in the market. It is a fact that the customers will only revert to the companys response when they will get something as per their demand. The company failed to respond to the complaints of the customers in terms of their low voice quality, not so stylish heavy sets and not user friendly (Wang, Hedman Tuunainen, 2016). Recommendation It can be recommended for the company that they should be more technologically savvy in order to cope up with the market trend. The company has enough experience in the mobile phone industry which will be used effectively for regaining their value and share in the market. They need to get hold of the opportunities of newly expanding market and shift their focus on smart phone business. It can be suggested for the company that they should make sleek designed and stylish sets which will attract the customers and think of innovation in the form of tablets and notebooks. Fig: Yearly profit and turnover of Nokia Source: (Wang, Hedman Tuunainen, 2016) Nokia has been hit by decline in the main network sector where it was threatened by Apple and Samsung. Even though the company was the first in the market to introduce mobile handset still they could not maintain their position as a pioneer. The reasons behind their loss have been mentioned in the course of this assignment and it could be recommended that should be extremely innovative for hitting the market. They should bring about sensible designing in their phones along with technologically advanced software which could beat Apple and Android. They should work on their overconfidence and be attentive towards the customer demand to make products for meeting their needs. Fig: Apple hardware quality revenues vs. Samsung mobile Source: (Vuori Huy, 2016) Fig: Comparison between Apple and Nokia Source: (Ciesielska, 2017) Conclusion Therefore it can be concluded from the assignment based on Nokias loss that the key to their success lies in their own hands. They could have used better branding strategies in order to beat the competitors. When Apple and Android were booming in the mobile industry with their extraordinary design and high tech applications, Nokia was lagging behind with its Windows technology and old set of phones. They have underestimated the trend in shifting to the smart phone technology and thought that they will be able to capture the market later on. Their pride was the main factor behind their ruin and they lost their market. The not- so- friendly mobile phones could not appeal to the customers in front of the stylish iPhones. Also, the technologically advanced applications of Samsungs android were no match to the backdated technology used in the Nokia phones. There were other factors too which played a role in the loss of Nokia such as environmental factors, social factors, psychological factors, cultural factors and personal factors. The government also did not support the company to regain their market share. Moreover, Nokia failed to respond to the market call when it was needed. References Akinsanmi, O., Ekundayo, K. R., Okorie, P. U. (2013). Reliability Assessment of an Electronic System: A Case Study of Nokia N1650 Mobile Phone Charger in Zaria, Nigeria. InAdvanced Materials Research(Vol. 824, pp. 170-177). Trans Tech Publications. Alibage, A. (2017). Nokias Smartphones: What Happened, and What Possibly Happens? A Review of Nokias Strategic Management of Technology Prior to 2014, and an Analysis of the Current and Future Situations. Aspara, J., Lamberg, J. A., Laukia, A., Tikkanen, H. (2013). Corporate business model transformation and inter-organizational cognition: The case of Nokia.Long Range Planning,46(6), 459-474. Ciesielska, M. (2017). NOKIA ON THE SLOPE: THE FAILURE OF A HYBRID OPEN/CLOSED SOURCE MODEL.The International Journal of Entrepreneurship and Innovation. Doz, Y., Wilson, K. (2017).Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones. Oxford University Press. Jia, J., Yin, Y. (2015). Analysis of Nokias Decline from Marketing Perspective. Laamanen, T., Lamberg, J. A., Vaara, E. (2016). Explanations of success and failure in management learning: What can we learn from Nokias rise and fall?.Academy of Management Learning Education,15(1), 2-25. Our history | Nokia. (2017).Nokia. Retrieved 26 November 2017, from https://www.nokia.com/en_int/about-us/who-we-are/our-history Vuori, T. O., Huy, Q. N. (2016). Distributed attention and shared emotions in the innovation process: How Nokia lost the smartphone battle.Administrative Science Quarterly,61(1), 9-51. Wang, J., Hedman, J., Tuunainen, V. K. (2016). Path creation, path dependence and breaking away from the path: re-examining the case of Nokia.Journal of theoretical and applied electronic commerce research,11(2), 16-27.

Home Depots Organizational Culture free essay sample

In my opinion, Nardelli’s programs were failed in changing operation of Home Depot to a more effective one. There are two reasons that Nardelli was not more successful. First, most employees did not want to an outsider to â€Å"GE-ize their company and culture. † Employees in Home Depot did not trust their new manager, which led absent support when Nardelli carried out the new process. The second reason was also the more important reason. Nardelli used the concept learned from industrial businesses to conduct the customer businesses. Since Nardelli wanted to conduct Home Depot in his own approach, he failed to recognize the importance of front-line staff, which leaded his fail in conducting the retailing business. The thing he should have done was improve the circulation of information between the different stores or within different level. Only in this way, he could solve the problem that Home Depot faced at that time—too large to be profitable. We will write a custom essay sample on Home Depots Organizational Culture or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The worst thing he should not have done was to get rid of many old employees and replaced the full timers with part-time staff.This decline in the quality of customer service and customer satisfaction strongly hurt the customer orientated business. 2. Nardelli provided a three-part strategy including improving Home Depot’s profit, and expanding the business and market. Crow focused on the other three priorities which would revive employees’ sense of ownership, foster their product knowledge, and boost their morale. The greatest difference was that Nardelli’s initiatives programs were concentrated on increasing profit and expansion, while Tim Crow’s programs were concentrated on increasing employees.Nardelli’s action decreased employees’ satisfaction and loyalty, which ruined Home Depot’s strong customer service culture. Tim Crow’s programs increased employees’ loyalty and revived Home Depot’s organizational culture. 3. Strong culture reflects the values of the organization’s founders. Home Depot’s founders: Bernard Marcus and Arthur Black, as entrepreneurs, emphasized on commitment to customers, colleagues, and company. These conducted the original culture of Home Depot.Sometimes, the organizational culture could cause conflict when top management changed. When Nardelli toke over Home Depot, clash of two distinct cultural approaches occurred. Organizational culture that is consisted of shared beliefs, values, and assumptions existed in the organization would lead the behavior of employees and the direction of organization. Home Depot’s original culture let employees to establish strong relationship with customers, but after Nardelli’s conduction, this relationship as well as employees’ and loyalty were harmed.Since the culture would affect employees’ performance and organization’s achievement, it should be built to fit the characteristics of the business and altered with great care. Coordination, conflict resolution, and financial success were the assets of maintaining culture. However Nardelli failed to achieve these goals. Tim Crow, on the other hand, focused on restoring the initial culture by implementing more employee award programs that would positively impact employee loyalty and performance.

Controlling Employee Healthcare Benefit Cost at Quality Auto Parts Essays

Controlling Employee Healthcare Benefit Cost at Quality Auto Parts Essays Controlling Employee Healthcare Benefit Cost at Quality Auto Parts Paper Controlling Employee Healthcare Benefit Cost at Quality Auto Parts Paper Abstract Healthcare policies are part of employees’ benefits in almost all companies, organizations, or establishments. One example is the industry of quality auto parts. At 13% of GDP, and is continuously increasing, healthcare cost is affecting many companies. The amount allotted for the employees healthcare policies quite alarming to the profit of companies. So many employers now are looking for ways to control the amount expended to employee healthcare benefits. Controlling Employee Healthcare Benefit Cost at Quality Auto Parts Problem Healthcare expenses are rising and now rival the labor cost and becomes employers’ top business financial concern. The industry of quality auto parts like the one manages by DeCarlo is one example of the many companies experiencing this problem of high cost of healthcare benefits for their employees. Profit of the company is greatly affected as well as the pricing of their products .and services. These made DeCarlo and the management searched for ways to minimize the company’s expenses, specifically the one allotted for the healthcare benefits. They look for effective means to solve these out-of-control healthcare costs. Present study shows that premium for employer-sponsored health coverage is rising at a rate of 7% to 8% a year according to a survey conducted recently. If these problems will not be solved and left unchecked it will endanger many companies. Causes of the Problem Probable causes of this growing problem are identified: due to federal legislation, increasing utilization of health services, skyrocketing malpractice rates, large catastrophic-illness claims, increase use of mental health and substance abuse services, increased used of medical service, high-technology medicines, cost shifting from government programs (Medicare and Medicaid) to private insurance, high physician fees, the AIDS crisis, the demographics of employees in the auto industry (higher percentage of older employees, and recent premium price increases. Actions Taken A meeting with healthcare providers, insurers, and employers are important to address the problem and discuss possible solutions to answer the problem. The company should learn to balance and track their expenses. A more comprehensive plan should be under careful study. Conclusion and Recommendations Healthcare benefits are in fact necessary and good for employees. But if it will continue to increase; company funds and resources will be of trouble and will be affected as well. There are various solutions available which can help the organization. Companies can control their benefit expenses by understanding their health insurance costs and their employee’s health priorities more accurately. Promoting health and wellness will keep the employees more physically fit. Managing relationship with the healthcare provider is also important because both groups can help one another in achieving their specific goals. Instituting wellness programs and adopting consumer driven healthcare are some of the ways to aid this dilemma. Conducting orientation of proper health maintenance is also applicable. A healthy, clean workplace must also be observed so sickness could be prevented. Employees must also apply proper healthcare practices to their homes and families so that they will not get sick, too. Companies and their employees as well as the healthcare providers must be willing to find solutions to this problem before they become worst, thus affecting the financial status of companies and the employees. Reference â€Å"Research Reports: Guide to Healthcare Cost Control: Employer Strategies, Tactics, Benchmarks.† (2005). ioma: Business Intelligence at Work. Retrieved July 24, 2008, from ioma.com/issues/downloads/pdfs_noreg/HCCostsGuide08_TOC.pdf

Final Business Plan Project Essay Example | Topics and Well Written Essays - 2000 words

Final Business Plan Project - Essay Example It’s marketing strategy will focus on provision of a website for easy communication and a high tech system that provides support for gaining the necessary intelligence for security purposes. It will also involve the development of a security research center in which major threats will be studied and results employed in the improvement of services provided by the company. The company aims at starting with a total of 160 guards with 20 clients each absorbing 8 guards. These will have 4 on entry points of the premises and 4 patrolling within to increase efficiency of the services. Through these, better services are guaranteed in the guarding sector. The private investigations will be conducted by a team of 6 employees qualified in the field with the consultancy services a reserve of one of the partners Mr. Luther Graves that has experience in security related fields. Occasionally will Mr. Don provide consultancy services especially if there comes a client in need of aid in security IT systems. The company SecureIT deals with the provision of security guards to different business premises with the aim of boosting security in the wake of terrorist threats. It offers security guards, private investigations and consultancy services in relation to security and aiding different corporations handle their security needs effectively. The company is a startup made up of a partnership between two partners that hold experience in the field of security with one Mr. Don Lawson having experience in security IT systems and the other Mr. Luther Graves holding experience in the policing field having worked with a security firm for over twenty years. SecureIt aims at providing quality security guards and consulting services with a demonstrated alertness, responsiveness, due diligence in approaching work or any threats and investigative needs, accurate judgment and a culture of quality in service delivery. SecureIt aims at standing at the global

Innovation and Change Research Paper Example | Topics and Well Written Essays - 4000 words

Innovation and Change - Research Paper Example Change is often taking place in an organization based on the innovations in product, process or strategy. Radical and incremental innovations are usually taking place in the organizational world. Both radical and incremental innovations have the ability to cause huge changes in the organizational world. This paper analyses the importance of innovations and changes in the corporate world. Introduction According to Bordia, et al (2005), â€Å"Innovation is the ability to define and develop new products and services and deliver them to market. It is the fundamental source of value creation in companies and an important enabler of competitive advantage†(Bordia, et al, 2005, p.1). On the other hand Anjani, & Dhanapal (2011) defined organizational Change as a multifaceted process which is much more complex than human behavior. In their opinion, individuals are prone to organizational changes and have a normal inclination to react in the same way towards the type of organizational ch anges (Anjani, & Dhanapal, 2011, p.103). In any case it is a fact that change is inevitable in business or organizational world since science and technology are advancing rapidly. Traditional business principles have given way for innovative business strategies as competition is growing day by day in the business sectors. In fact the whole concept of business has been changed from domestic circles to international circles as a result of globalization and liberalization. It is impossible for a prominent organization to think about doing business only in the domestic circles and survive in the market. As the market is getting increasingly globalized, competition from external players is growing day by day. Changes in business strategies become inevitable under the above context. Innovation triggers many changes in organizations. Many of the traditional business principles have given way for modern business strategies as a result of the innovations in the organizational world. Structur al, functional, managerial, cultural and strategic changes are taking place in modern organizations because of the rapid growth of innovation taking place in and around the organizations. Findings According to Susman et al., (2006) Innovation usually takes place based on products, processes and markets (e.g., new ways to serve customers (Susman et al., 2006, p.16). many people have the illusion that innovation means the development of new products alone. In fact the development of new processes and new business strategies are examples of innovation. Innovations based on products The story of Apple Company is the most relevant example to learn more about how well innovative products change the fortunes of a sick organization. In the 80’s and 90’s Apple struggled to survive in the market because of the heavy competition from arch rival Microsoft. However, during at the beginning of 2000, Apple bounced back from the verge of destruction with the help of its innovative â⠂¬Å"I† series products such as ipod, iphones, ipad, imac, itouch, itunes etc. All these products provided new experiences to the consumers all over the world and many people started to visualize Apple as the most important technological company in the world. Pfizer is another company which used innovative products for the sustainment of their growth. For example, Viagra is a revolutionary product introduced by Pfizer to cater the needs of sexually impotent people. Pfizer

Case study 3 Essay Example | Topics and Well Written Essays - 750 words - 1

Case study 3 - Essay Example Medicaid incentive program is administered on a voluntary basis by both the state and territories (Hsiao & Hing, 2012). Eligible professionals have a chance of participating for a period of six years, until 2021, and it is not a must for participation years to be consecutive. Medicaid incentive program is suitable for UMUC Family Clinic for improvement of patient care as outlined in the meaningful use stage 1. The deadline for eligible professionals to start their participation is 2016; the clinic needs to concentrate on attaining the core and menu objectives and clinical quality measures (CQMs) requirements in order to receive incentives payments, of up to $63,750 under medical EHR incentive program for a period of six years (Hsiao & Hing, 2012). The program allows eligible professionals to receive incentive payments as a result of having successfully adopted, implemented or upgraded certified technology of EHR during the first year of participation as well as demonstrating meaningful use (Marcotte et al, 2012). In case the clinic will not be able to satisfy meaningful use, its profession practice will have to incur expenses of up to $21,250.00 in 2015. Medication process at the clinic will be entered using CPOE. The technology has proved successful in keeping record of medication details of over 30% patients. The clinic will rely on medicaid incentive to increase the number of medical entry of patients using CPOE. The clinic will rely on using certified HER technology to submit all permissible prescriptions recommended by eligible professions. The program will enable the clinic to improve on quality and safety as well as efficiency while attending to patients. Aggregate of numerator and denominator as well as exclusions will be provided to either CMS or the state by attestation electronically. The reported information reveals clinical quality measures being undertaken by the clinic. The report is necessary for the state

Causes of the Animal Welfare Movement

Causes of the Animal Welfare Movement Animal Welfare The meaning of animal welfare is stemmed out of the meaning how animals are dealing with the places and the circumstances which they are placed in. An animal which is in a state of prosperity stays healthy and in a good shape. The way to keep the animals health is through feeding it, keeping it in a good shape and health and stays in safety from any dangerous circumstances, it also indulges not making the animal suffer from any dissatisfying moods like agony, unsafely and   stress.   A good animal care and prosperity requires also an attentive health care and seasonal veterinary visits, well-built shelter , supervision, feeding and humane caring and humane butchery. The term animal welfare refers to the overall state of the animal, the health care that the animal gets that is indulged by many other terms  Ã‚   like animal healthcare, animal marriage, and well-presented treatment. Certifying animal satisfaction is a responsibility that is thrown over the arms of humans that indulges the attention to all the surroundings of animal satisfaction that indulges proper well-made shelter for the animal, organization, feeding and treatment against all diseases. It also demands an liable attention, humane conduct and even when it comes to the aspect of humane euthanasia. There are many points of views that perceives animal prosperity that are prejudiced by the persons morals and familiarities. There are also many meanings of measuring the animal prosperity level that indulges its well-being, efficiency, its manners and its responses. In this essay we will deal with why people support animal welfare campaigns, and the reasons that lead to creating animal welfare organization. Most people ensure animal rights and animal prosperity to save the animals from the worst treatment they are faced with and most of the people who ensure those rights to stress on the freedoms of the animals which are firstly, the freedom from malnutrition and dehydration by supporting the animals and their owners by the water and food they need to keep their animals in full body shape and potency, secondly the freedom from distress by enhancing them with the suitable shelter circumstances that is represented in the housing and comfortable sleeping area. There are also many freedoms that is enhanced by the supporters of the animal prosperity campaign that is determined in curing the animal from aching, wound, or sickness by quick analysis and healing, there must be a space also for the animals to   show there behaviors without being whipped and these places are places with the same herd and with instruments that helps in the treatment of the animal in a special place. There must be a type of freedom for animals that preserves them from threatenings and a well treatment that prevents from the deteriorating mental health. Moreover, most of the Americans have certain believes that animals have the same rights as human beings as mostly the third of the American population have certain beliefs that animals should be treated equally as human beings. Those who   have this belief reached 32% of the adult sample which were suggested to poll that counted as 1,024 person and the other 25% perceived that   the animals should be kept away from the bad treatment and maltreatment. On the other hand mostly 62% of the Americans voted that the animals need some guard and that they can be used also to serve humans another three percent perceived that they should be protected but not like humans as they are just animals. Most of the Americans were worried about the destiny of the animals which are used in the Circus as the reported that they were mistreated and also they feel worried as the animals also the animals used in sports and research and sports were mistreated also.    These organizations were built to show that the animals requires equal or similar treatment as humans get it and it requires attention as thee is the most significant difference we are dealing with about animal prosperity as most of the humans reveal the question that is animals should live a prosperous normal life and most of the people answer yes they should treated on the same level as human beings are treated as the followers of animal prosperity and animal rights perceives that they have a quality and importance that overcomes there usage for humans as the animal prosperity level is no just an idea it is a global movement that stands against the normal perspective of humans that perceives any   animal as they are used for humans help and satisfaction. These were also created to stop against the cruel treatment against the animals that started to be   a licensed movement in the beginning of the nineteenth century in England it also stood against the usage of animals in laboratory research specially in the years before using medicines and drugs , this movement was very apparent in England and began to appear in America in the late 1890s and the most apparent thing they attacked was the usage of animals in scientific researches. These organizations are also very important as they stress on the concept of occupation of the animals because in the third world countries the animals are mistreated and are used as trucks, cars, and transporting machines. People misuse them as they are our servants and they are here to serve us only. Yet, this is not true as they are living organisms like us and have the same rights like us but instead they are used to cultivate the fields, transfer the products to the markets, and work as an ambulance to transfer sick or injured people to hospitals. These organizations also guarantees the legality of the concept of Animal Welfare as many laws has been published to protect animals from being mistreated, thus anyone who breaks these laws will be punished and imprisoned and his guilt will be the mistreatment of the animal. England has published many laws to protect animals from being mistreated and acting harshly against them, these laws has been published since the beginning of the twentieth century so that they can guarantee the prosperity and welfare of animals not only in Britain but in the whole world. There are many laws that has been published to assurance the welfare of the farm animals. The other concept that these organizations has been found to is increasing the morality of human beings towards the animals. These organizations let the people know that they have a heavy duty to protect all animals not   only the animals that are viewed as our pets but also any animal who is viewed to be mistreated in America for example the person can call the police if he viewed a person treating the animals brutally and this person would be arrested immediately as our duty as human beings not to increase the sufferings of the animals but to help them live in a prosperous way. Yet, a lot of people will not agree to that especially in the animals shelter or the dog training center that demands brutal force in order to train dogs. The more strong animal welfare organizations that will reflect to the economy strongly and it will benefit the country and the animals in a marvelous way because it will increase the stocks of this country and there will be a lot of advertisement to this country as these countries serve the animal rights and leads to the animal prosperity well. In conclude, the animal prosperity movement still needs development and that made many other parties appear like the animal rights movement these parties were not known until the late 1950s.   The competition in this field is as apparent as they are divided to research the animal prosperity of the laboratory animals or the farm animals or the Circus animals. References: Anonymous. (1998). Animal Rights Movement. Retrieved from sonoma: http://www.sonoma.edu/users/w/wallsd/pdf/Animal-Rights-Movement.pdf Association, A. V. (2017). Animal welfare: What is it? Retrieved from avma: https://www.avma.org/KB/Resources/Reference/AnimalWelfare/Pages/what-is-animal-welfare.aspx PETA. (2017). Why animal rights? Retrieved from peta: http://www.peta.org/about-peta/why-peta/why-animal-rights/ reserved, D. A. (2009). The importance of animal welfare. Retrieved from dailyojo: http://dailyojo.com/articles/the-importance-of-animal-welfare.html Strand, P. (2014, 10 06). What is animal welfare and why is it important? Retrieved from Animal Rights vs Animal Welfare. Strand, P. (2014, 10 06). What is animal welfare and why is it important? Retrieved from naiaonline: http://www.naiaonline.org/articles/article/what-is-animal-welfare-and-why-is-it-important#sthash.nGylfnIb.dpbs Yuhas, A. (2016, 11 11). A third of Americans believe animals deserve same rights as people, poll finds. Retrieved from theguardian: https://www.theguardian.com/world/2015/may/19/americans-animals-human-rights-poll

Automobiles of Tomorrow Essay -- Automobiles

As America moves into the next generation of vehicular travel, we must keep in mind how resources will be used to develop these very things. Will we continue to consume more so than is necessary? Or will our government, in partnership with research and development firms, develop a comprehensive plan to engineer cars that act in stewardship of the environment. As it stands, the Environmental Protection Agency has enacted policies and regulations which move toward just that; reform which targets car companies in an effort to curb their wasteful tactics and implement standards that will ensure consumers pay less at the pump and get more out of their car (Environmental Protection Agency, www.epa.gov/fueleconomy). Nevertheless, we must look at both sides of the argument when analyzing the particulars of such a concept; in so far as, if we choose to reform the way business is done in America, how do we go about doing it to include the need for companies to ensure that their respective pro ducts do more to help the environment than harm it. When analyzing the need to regulate the means in which a company designs and engineers their vehicles, we must first assess governmental efforts in regards to establishing particular fuel consumption norms. Thus, we analyze the Environmental Protection Agency and any methods used to determine fuel efficiency standards that are at a level which ensures companies have a viable opportunity to meet said standards. 2011 witnessed the introduction of the revamped EPA’s labeling system as a means of promoting fuel efficiency standards to customers in car dealerships (Why is Fuel Economy Important, www.fueleconomy.gov). Within the changes came inclusions of detailed information regarding the vehicles’ fuel... ...cuments 1. MasterFILE Premier, EBSCOhost (accessed April 19, 2012) 3) "Why Is Fuel Economy Important?" Fuel Economy. Environmental Protection Agency. Web. 17 Apr. 2012. . 4) United States. Environmental Protection Agency. Fuel Economy. EPA. Environmental Protection Agency. Web. 17 Apr. 2012. . 5) "Consumer Reports: 39 Percent Considering a Hybrid or Plug-in For Their Next Car." Hybrid Cars. Web. 18 Apr. 2012. . 6) "Vehicle Fuel Economy: Reforming Fuel Economy Standards Could Help Reduce Oil Consumption by Cars and Light Trucks, and Other Options Could Complement These Standards: GAO-07-921." GAO Reports (August 3, 2007): 1. MasterFILE Premier, EBSCOhost (accessed April 19, 2012).

Macbeth Essay: Is Macbeth a sympathetic character? Essay

In Shakespeare’s screenplay, tragedies usually arouse feelings of pity and fear. Yet is the gradual breakdown of Macbeth enough for the audience to feel sympathetic for him? Macbeth is taken place in Scotland. It explores themes like power, desires, ambition and gender etc.. In the story, Macbeth is a general that, due to three witches’ prophecies, fell from a hero into the trap of dark desires for power. An interesting point to note is the relationship between man and woman in the story. Unlike classic views, Macbeth is a rather weak man at home and is dominated and influenced by his wife. I think that there are three points that prove Macbeth to be a sympathetic character. To begin with, Macbeth has never been treated fairly since the beginning. Firstly, the prophecies of the witches have never been fully true. They have hidden some of the truth and consequences just to spur Macbeth on. The prophecies is the reason to his thirst for throne and power. Macbeth believes everything the witches said is true as one of the prophecies has already been fulfilled. Because of the partial-lies, Macbeth thinks of himself undefeatable. His moral conscience allows him to doubt if he shall trust them. Second of all, Lady Macbeth is one of the main reason that pushes Macbeth’s mind to murder. As Lady Macbeth craves for power, she entices Macbeth to listen to her through asking him to strive for money and power. She also threatens and mocks Macbeth’s manhood and courage as a â€Å"coward†, telling him to â€Å"screw [his] courage to the sticking place†. During the murders, she even supports and supervises Macbeth in the murders by asking him to â€Å"leave all the rest to [her]†. Hence, Macbeth has so many outside influences, that it is much likely that he will not have continued with his thoughts to kill Duncan without the influence other characters made on him. Moreover, I believe that Macbeth suffers a lot more than what deserves. He may have hurted a lot of innocent people, but the consequences he faces is  much worse. First, he has been haunted by guilt ever since the first murder. He keeps on having hallucinations: the bloody daggers, Banquo’s ghost†¦ These all marks Macbeth’s guilt and remorse that will permanently stain him for the rest of his life. Secondly, he is slowly becoming more and more isolated. He first loses King Duncan, a man that puts in a lot of trust in him, after murdering him with his own hands. He then kills Banquo, his â€Å"friend† and â€Å"companion-in-arms†, because of the threats he poses to him. Near the end, he even loses his wife Lady Macbeth, who died from illness. At this point, Macbeth has already went from an isolated couple with Lady Macbeth to a totally isolated individual. He has nobody to confront with, nobody to talk to, he is all lonely. Third, his murders even cost his own life. The murders of Macduff’s family and Duncan eventually led to the revenge of Macduff and Malcolm. Therefore, we can see that Macbeth already has to face a lot of consequences due to his murders. Finally, Macbeth has always been portrayed as a real hero in the public’s eyes. In the beginning of the plot, it is mentioned that Macbeth fights a lot of wars for King Duncan and has gained the title of the Thane of Cawdor. He fights so tremendously like â€Å"a giant of fury and courage† that â€Å"he made killing almost holy†. His bravery and success is even described as â€Å"supernatural†. Even when he knows that he is finally going to lose, he still says that he â€Å"cannot fly, but bear-like [he] must fight the course.† He feels like a baited bear, chained to be attacked just for pure pleasure of audience, trapped and lonely, yet there is no going back, he has no chance to win this battle or even go back to where he once is. Yet he never once give up and still continue to fight and be courageous in such hard situations. Therefore, we can see that Macbeth is a real hero. Although some might say that although Macbeth is in grief and guilt, he continue to step further and murder more innocents. Even when Lady Macbeth repents, he never stopped to think what went wrong. In my opinion, Macbeth only did what a normal person would do. He only continued with the murders because there is no turning back. As he says, â€Å"I am in blood stepped in so far, †¦ returning were as tedious as go o’er.’ His mistakes has left him no other choices, even if he admit his wrongs, not much can be done. To him,  Ã¢â‚¬Å"another crime, another murder†¦ but did it matter any more?†. He cannot turn back time. What done is done. He have to face the consequences of his faults. In conclusion, Macbeth is a sympathetic character. He has a strong sense of honour and loyalty, even during the murders of Duncan, he is very resistant and faces a lot of guilt afterwards. It was only because of influence from others that turned him to his dark desires. The story would have turned out to be a lot different if Lady Macbeth is a typical woman. Macbeth will not have been motivated by so much without Lady Macbeth. Even so, when he found the witches to be a fraud, he still acts like a hero, faces the fact and fight with Macduff. Macbeth is a character that took in a lot of hits — from depression to conscience and psychological conflicts to loneliness and isolation. Therefore, no matter how much wrong Macbeth did, he already paid back through the consequences that hit him, he is a sympathetic character.