Measure for Measure Essay

What evidence is in that location in the summercater to support both views? What interests and engages you in the play? There are many an(prenominal) aspects of the play that engage and interest the listening, two main aspects being harlequinade and trickery. There are many characters in the play which contribute to the comedy and trickery which is abundant in the play in particular Lucio is a character who is often seen as comical due to his lack of parapet in his speech and his ignorance of other characters.He is often associated with bawdy temper but is in any case associated with noblemen which brings his character into debate. The main rise of trickery which engages the sense of hearing is the bed trick which is cunningly devised by the Duke, which a create brings his and too Isabellas character into debate. Lucio is one of the main sources of comedy in tone for Measure, his humour and almost careless speech engages the reference which allow for end point in the sense of hearing liking his character.His speech on occasions appears to sustain no restraint which is evident from his conversation with the two gentlemen when he proudly proclaims I have purchased as many diseases under her roof as come to. Lucios tone suggests the he is proud of this achievement which in turn results in the audience being humoured by Lucio. However Lucios proclamation also gives the audience reason for concern as it shows that there is a worry in Vienna with widespread disease.This relates to the outskirts in capital of the United Kingdom in Shakespeares era as there were a mountainous number of brothels which resulted in widespread disease. Lucio also humours the audience when he slanders the Duke in the presence of Friar Lodowick who is ironically the Duke. Lucio describes the Duke as being A actually superficial, ignorant, unweighing fellow. There is dramatic irony throughout act 3 scene two as the audience know that Friar Lodowick is then the Duke, th erefore will be constantly humoured as Lucio unknowingly slanders the Duke without a care.Lucios use of ignorant to describe the Duke is very ironic as Lucio himself is ignorant to the fact the Friar Lodowick is the Duke. As of yet Lucio is painted as being a bawdy character solely to humour the audience with his ridiculous imagery some say a sea maiden spawned him. However he is often associated with noblemen such as Claudio One interchange good friend. Lucio, a word with you. Therefore Lucio can be seen as representing both noble and the low culture societies, therefore the audience will have to judge Lucio and decide.I find Lucio interesting as he is presented as a random and spontaneous character, he also confesses that he will never change his attitude I am a kind of burr, I shall stick. Lucios character appears to contradict puritan ideas and I believe Shakespeare uses Lucio as a tool to get his nub across. Using Lucio is a great example Shakespeare is stating that we need variety in life in order to function Why, twas a eclipsement to command captain and all the rest from their functions. Shakespeare is saying everyone has a role in life which yet God can change this again puts accent mark on the variety of people.This idea relates to the theme of equilibrium, in this diverse ordering there will be equilibrium between people. The main source of trickery in the play is the bed trick which has been cunningly mean and devised by the Duke we shall advise this wronged maid to stead up your appointment, go in your place. Thus exposing Angelo as a result, the trickery will also give insight to the Duke being deceptive. However the reader will query Isabellas actions as she appears to be a keen accomplice in the trick The image of it gives me nitty-gritty already.This painted image of Isabella conflicts with that the audience has been accustomed to, Isabella is often seen as excessively pious as she sort of wishes a more strict restraint on the siste rhood. The audience will therefore gain a different perspective of Isabella as well as being sceptical on her position in the sisterhood, she appears to show no insight to the effect(s) this trick will have on Angelo and Mariana as well as her own reputation instead she seems to flat agree with the decision without hesitation.The audience will believe Isabella is thinking only about herself, as she wants to exposes and humiliate Angelo for his earlier refused proposal to Isabella. The use of content already shows that Isabella appears to be excited and eager about this proposal, the tone also appears to be joyful again emphasising her eagerness. To summarise, comedy and trickery are both key aspects of the play which engage the audience into debate.The audience will gain insight of the characters and will be able to judge the characters on a number of occasions by considering the arguments for and against the decisions these characters make. The play on a undivided I found very in teresting and engaging, as a problem play many of the decisions made by the characters can be argued for and against, hence the audiences judgements on these characters will be diverse as everyone will behold characters decisions in a different manner.

Life and Debt in the University Essay

Incurring debts dapple studying is never a pleasant fancy. However, todays increase tuition and school fees, coupled with rising costs of living, confirm do indebtedness inevitable for many savants. Although there are disciples who get firmly indebted from living frivolous lifestyles, around of the students I know unremarkably had valid reasons of being compelled to avail of loans much(prenominal) as sickness and pecuniary difficulties in their families.Pursuing higher education besides meant independence for most students, and while whatsoever continued receiving monetary life from their families, there are also those who chose to be completely on their own. Having to live independently and support myself, I usually had to take protrude a tuition loan during enrollment since I could not afford to pay school fees outright. Unfortunately, a debt is not something you enjoy havingor worse, accumulatingand it can pick out a marvellous effect on ones well-being. Unless a student wants to blow over his or her university life worrying about increasing debts, he or she must learn to manage his or her finances early on.            Indeed, it bets that debts devote become a normal part of being a student. Whether a student likes it or not, soaring school fees and skyrocketing costs of living have made debts an inevitable reality. I figure most of us have even become comfortable with the thought that we can take out loans from numerous sources like the university loan board, the bank, or even from personal contacts when it becomes necessary, such as when poor students like us die hard out of silver for the rent and opposite personal needs.Getting into debt under such situations is understandable, further I do know some students who get cash-strapped from living beyond their means and are unnecessarily pushed into debt by their foolishness. Thus, a student should think first about the ways in which he or she leave behind pay for her future debts before he or she starts having grand outlay plans for that newly-acquired student credit card.            On the other hand, students should know that getting into debt is the palmy part. Getting out of it would be the difficult part and would certainly jibe to the stress of ones university life. It is not as if the experience of a student who is neck-deep in debt would be different from the experience of other people in similar situations. Financial worries, in my opinion, may seem to be easy to solve but they can significantly inconvenience a student from his or her academic responsibilities. I remember, for instance, being overburdened by thinking so much about how I was breathing out to pay hit the tuition loan last semester that I a good deal forgot my goal of getting good grades.Consequently, worrying about debts can also affect the psychosocial well-being of a student, sometimes even leading to major(ip) issues such as depression. Debts can compound other problems that a student may be experiencing, such as alienation from more light classmates and friends.There were times that I felt so bitter with my financial situation that I thought of dropping out from my studies and taking up a full-time job instead. Fortunately I had the support of support friends who were either in similar situations or had gone through the akin things before and we collectively held on to the belief and determination that we will someways get over our problems.Thus, it was from these often painful and bitter experiences that I wise to(p) the plain and simple truth about debts and in the process of seek to maintain my sanity developed several coping mechanisms to manage debts. For instance, some of us tend to overlook the fact that debts do come with an superfluous interest on top of the principal and wait until the dreaded assembly letter or notice comes instead of trying t o settle debt obligations as early as possible.Paying off debts even in smooth increments saves us a lot of money in the long run since we avoid incurring more penalties. In the same manner, a student should avoid getting into more debts by spending according to a planned budget and within his or her allowance or income limit. A part-time employment can also be helpful in these times as a source of extra income for paying off ones debts. In the end, there are times when getting into debt is inevitable, especially for students, but it can be an important learning experience in managing ones finances.

Samsung Distribution Channel

Samsung foodstuffing dodging in china Nowadays, chinawares communication industry is developing rapidly, and China has kick the bucket the biggest unsettled think market each over the knowledge domain. There are many worldwide renowned nomadic call off manufactures and topical anaesthetic producers in this market and these companies are competing pugnaciously in Chinas runny echo industry. It is cognise that, in 1999, when the municipal liquid send for sets entered the fluid earpiece market, some people had expected that the domestic wandering mobilize brands would survive in this market.However, with the passage of clipping, the local brands made great development and their total market plowshare surpassed that of the international mobile phone giants including Nokia and Motorola. In 2001, the market share of domestic mobile phone was 15% in 2002, the rate was more(prenominal) than 30% and in 2003, the market share rose to more than 50%, which was a hist orical breakthrough for the domestic brands. However, since 2004, the condition of China-made mobile phones has become negative.As the competition in this market gets fiercer, foreign mobile phone manufactures are consistently developing new brands and improving their distribution channels, and the domestic brands have lost the once-owned channel advantages. Because of some problems of domestic mobile phone industry, the market share rate has dropped dramatically, and most of the domestic mobile phone companies have suffered great losses. What was worse, some domestic mobile phone enterprises such as PANDA, EASTCOM, and SHOUXIN were so badly defeated that they were out of the Chinese mobile phone market.In this market with fierce competition, Samsunga Korean mobile phone brand has developed quickly in recent historic period and continuously won the prototypical place in market share. As one of the worlds top three major mobile phone manufacturers and the Korea phone leader, Samsu ng mobile phones harvest-tide opinion is fashion-leading technology. Its brand development strategy is to create the best products in the world. Samsung has created many number ones, such as the worlds first-year mobile phone that has a rotating screenSGH-V200, the worlds first MP3 phone, the worlds first TV phone, watch phone and the worlds first CDMA/GSM dual-mode mobile phone.Samsung mobile phone is taking the high-end product strategy, which is different from Nokia and Motorola. In the high-end electronics market, Samsung is unendingly the first to launch a concoction of superior products and it always makes high profits by virtue of time advantage. In China in the year 2008, Samsung introduced 20 models of mobile phones, of which the appearance, the feed and the grapheme are material bodyed with advanced concepts, innovative technologies and world-class standard.Samsung mobile phones are always popular in China and the other countries all over the world. The success of the Samsung mobile phone enterprise in China lies in its unique industry background and professional strengths, and the company similarly benefits from research and development and the selling strategies which are compatible with the environment. Marketing strategy is the marketing logic whereby the company hopes to achieve its marketing objectives, which includes special strategies for cigaret markets, positioning, the marketing mix and marketing expenditure levels.Once the overall hawkish marketing strategy is set, the company is ready to begin planning the inside information of the Marketing coalesce, one of the major concepts in modern marketing. The Marketing Mix consists of many variables that the company should do to increase its product demand. These variables are know as the 4Ps product, price, promotion and place (distribution). The reasonable Marketing Mix could table service the company to establish strong positioning in the target markets. establish on the unders tanding of the importance of 4Ps Marketing Mix and its impact on Chinas mobile phone industry, this paper is divided into five dollar bill chapters.Chapter one is the introduction. It briefly introduces the research background and its academic and practical implications. Chapter ii is the thorough analysis of current domestic mobile phone market. after(prenominal) the introduction to Chinas mobile phone development history, this chapter primarily analyzes the internal and external environment of Chinas mobile phone industry by virtue of the SWOT Analysis Method. Though the analysis, it is cognize that domestic mobile phones have some advantages, such as the constitute advantage, localization advantage and fast market reaction advantage.The weaknesses of the domestic mobile phones are that the core technologies are weak, mobile phone qualities are non guaranteed, there is serious product homogenization and most of the domestic mobile phone enterprises are on a small scale. It i s certain that the local mobile phone industry has many opportunities for its development, which include the sound sparing conditions, the support from the government, the coming of 3G era and the coming of phone replacement rush. However, domestic mobile phone companies do face some threats, such as the threats from copycat mobile phones and the international mobile phones fierce competition.Chapter three is the introduction to Samsung mobile phone and the analysis of its successful marketing strategies in China. In this chapter, it is known that Samsungs successful marketing strategies could in the main be expressed by the variables in its Marketing Mix. In product, Samsung is always focusing on producing high quality products to build strong brand image and enhance the brand value, offering perfect after barter services to own good reputation, incoming continuous product existence to maintain brand image and brand vitality and supplying classifiable and fashionable designs t o maintain brand differences.In price, Samsung has effectively assessed the value and the quality of its digital electronic products, the importance of the products unique, stylish design and knows that the consumers are willing to pay high price for such products, and and then it adopted the skim pricing strategy. In channel strategies, Samsung has always insisted on national agents, and it has prudently selected the national agents to do its distribution. In terms of the promotion strategies, Samsung always focuses on unifying advertising agencies and launching a series of effective advertising campaigns.Two of its excellent promotion strategies are launching a variety of sports sponsorship, focusing on Olympic TOP chopine and making use of entertainment activities to enhance fashion marketing, which proved to be qui te effective. Chapter four concluded some implications to the local mobile phone industry. It is suggested that, in terms of the product, the domestic manufactures should master and develop core technologies, improve the product line and produce more high-end products. Besides, the mobi

Leadership Development SMART Goal Setting Essay

The intent of this assignment is to develop a voguish-formatted terminal on a selected sea captain leading topic applicable to your current practice setting or future lead breeding addresss. This goal is about your leadership development needs, not those of the organization. The Institute of euphonys reference initiative has set five core healthassist profession competencies that serve as a frame race for identification of the leadership goal.Course OutcomesCompletion of this assignment enables the disciple to put together the following course outcomes. CO 1 Apply leadership concepts, skills, and decision making in the provision of high quality treat c be, healthc ar team up forethought, and the oversight and accountability for c be delivery in a variety of settings. (PO 2) CO 4 Apply concepts of leadership and team coordination to promote the masterment of safe and quality outcomes of cargon for diverse populations. (PO 4) CO 5 Apply improvement methods, based on e ntropy from the outcomes of care processes, to design and test changes to continuously improve the quality and safety of healthcare. (PO 8) CO 8 Apply concepts of quality and safety using structure, process, and outcome measures to expose clinical questions as the beginning process of changing current practice. (PO 8) cod DatesThis assignment consists of the completion of the leaders suppuration overbold closing desktop paper. Submit assignment to the Dropbox by Sunday, 1159 p.m. MT, by the prohibit of Week4. PointsThis assignment is worth two hundred points.Directions1. Review the Institute of Medicines (IOM) core healthcare competencies. subscribe angiotensin-converting enzyme of these competencies that you would like to work on for developing a chichi goal. The five core competencies are listed below.Managing Patient-Centered CareWorking in inter disciplinal and/or inter skipper teamsEmploying test-based practiceApplying quality improvement techniques andUtilizing infor matics.2. adduce ONE KSA (Knowledge, Skills, and Attri simplyes) link up to the item core cogency you chose above. Examples of KSAs (Knowledge, Skills and Attributes) for your Leadership Development Goal Setting include conflict resolution, graceful influential,leading change,communication about the patient,communication organization-wide,team building conversations,organisational skills,using evidence to guide your practice,initiating QI/PI endeavors,using data to service of process with decision making,staff education,problem solving,human resource management issues,delegation,decision making,budgeting and finance, andcomputer skills.Others are possibleIf you have questions, please data link your instructor.3. Create ONE leadership development goal that is in the knowing goal format. You practiced this in the Week 3 Discussion, and received expensive feedback from your instructor and peers. Please consider this as you work on this assignment. S Specific (Who is involved in the goal, what is the goal, where exit it take place?) M Measurable (How are you going to achieve the goal?) Be particular proposition with measureable outcomes. A Attainable (What resources and/or experts are available to assist you with attaining your goal?) R Realistic (Is this goal something that is realistic all toldy obtainable in professional practice?) T Time stick out (What specific dates or weeks exit you accomplish each task of your goal achievement?)Example non in spite format I will learn how to be a manager. This goal is lofty, not measurable, and unattainable in the time allotted, in all likelihood not realistic, and not time strangulate. Example in wise do I will learn the disciplinary process of an employee who has excessive absences, by locating the organizations attendance policy and meeting with the social unit manager, reviewing peer-reviewed articles and plausible websites to obtain information on the disciplinary process by Week 4 (or sp ecified date). Note This particular example relates to warmheartedness Competency Managing Patient-Centered Care.This example is a talented goal that is Specific, Measurable, Attainable, Realistic, and Time-bound.S-SpecificWho- Your name, or IWhat- Learn the disciplinary process of employees who have excessive absences Where- Your organizationM-MeasurableHow through with(predicate) locating the organizations attendance policyA-AttainableResources and/or full Meeting with the unit manager, reviewing peer-reviewed articles, and credible websitesR-RealisticRealistically obtainable Access to the organization, policies, and unit managerT-Time boundSpecific dates By Week 4 (or specific date)4. Go to the Chamberlain library and search the databases to locate profound articles link to your wise goal. Also, search for credible websites to gain insight into how to accomplish your goal. 5. Construct a pattern of sue to reach your Leadership SMART goal that includes identifying the att ributes  inevitable in order to achieve your goal. Be specific by creating a timeline of when you plan on doing each action explain how, when, and where you plan to go through with an expert and identify specific resources you will use to help you achieve your goal. a. Example Plan of Action for above menti id exampleSeek thanksgiving to review the organizations policies and schedule a meeting/ consultation with the unit manager by _____ (fill in date). Review the policies on disciplinary action by _____ (fill in date). Review the American Nurses Association website and peer-reviewed articles in the American Journal of Nursing and Journal of Advanced Nursing by _____ (fill in date). Evaluate the findings from the above resources by _____ (fill in date).6. Write a intellectual paper that follows APA arrange guidelines. Organize your content logically and enunciate your thoughts clearly. Use appropriate headers to separate sections of your paper. Check for any grammar or rec ite errors before submission. 7. Submit your completed NR447 Leadership Development SMART Goal paper, which should be approximately six paginates (excluding title page and references) to the Week 4 Leadership SMART Goal Setting Paper Dropbox by Sunday, 1159 p.m. MT at the end of Week 4.Grading Criteria Leadership Development Smart Goal SettingCategoryPoints%Description remove ONE of the IOM core competencies to develop a SMART goal 105%Selects the specific IOM core ability upon which SMART goal is based. Name ONE KSA (Knowledge, Skills and Attributes) related to the ONE specific core competency 157%Names ONE KSA based on a specific IOM core competency noted above and describes how the KSA relates to the specific IOM core competency previously selected. Develop wholeness specific leadership SMART goal.5528%Develops a professional leadership (SMART) goal, formatted correctly containing specific, measurable, attainable, realistic, and time bound attributes. KSA is related to the cor e competency selected. Locate scholarly articles and credible websites relevant to your SMART goal. 2010%Locates scholarly articles and credible websites related to SMART goal/KSA. Summarizes articles and websites in body of paper. Construct a plan of action for SMART goal.8040%Constructs a plan of action for SMART goal, identifying the attributes undeniable in order to achieve the goal creates a timeline, explains how the plan will unfold, and how specific resources (articles and websites) will be utilized in feat to achieve goal. Plan is apparent in body of paper. Clarity of paper2010% subject area is organized, logical, and with correct grammar, punctuation, pieceing, and sentence structure are correct. APA formatting is apparent. References are appropriately cited within the paper reference page includes all citations neat title page and introduction are pose and evidence of crook and grammar check is obvious.Grading Rubric for Leadership Development SMART Goal Setting A ssignment CriteriaOutstanding or Highest aim of cognitive operationAVery Good or High direct of PerformanceBCompetent or Satisfactory Level of PerformanceCPoor, Failing, or Unsatisfactory Level of PerformanceFChoose ONE of the IOM core competencies to develop a SMART goal 10 pointsChooses only one IOM core competency upon which SMART goal is based. 910 pointsChooses an IOM core competency but it is the best fit for the SMART goal. 8 pointsChooses a competency but it is not an IOM core competency.7 pointsFails to choose any competency.06 pointsName ONE KSA (Knowledge, Skills and Attributes) related to the elect IOM core competency. 15 pointsNames ONE KSA based on the chosen IOM core competency AND describes in detail how the KSA relates to the competency. 1415 pointsNames ONE KSA based on the chosen competency but describes in commonplace terms how the KSA relates to the competency. 1213 pointsNames ONE KSA based on the chosen competency but does not describe, or only vaguely des cribes, how the KSA relates to the competency.1011 pointsDoes not name a KSA.09 pointsDevelop one specific leadershipSMART goal.55 pointsDevelops a leadership goal that is formatted correctly containing specific, measurable, attainable, realistic, and time bound attributes AND it is related to the chosen competency and KSA. 5155 pointsDevelops a leadership goal that is formatted correctly except for one component that does not meet the SMART goal criteria, i.e., not specific, measurable, attainable, realistic, or time bound. The goal is related to the chosen competency and the KSA.4650 pointsDevelops a leadership goal that is somewhat formatted correctly, but twain or three components do not meet the criteria for a SMART goal, The goal is NOT related to the chosen competency OR KSA.4245 pointsDoes not follow SMART goal formatting. The goal is not related to the chosen competency and/or KSA. 041 pointsLocate scholarly articles and credible websites relevant to your SMART goal. 20 po intsLocates at least two scholarly articles and two credible websites related to the SMART Goal and KSA chosen. Summarizes all of them thoroughly.1820 pointsLocates one scholarly article and two credible websites. OR, locates one credible website and two scholarly articles. Summaries all of them generally.1617 pointsLocates only one scholarly article and only one credible website. Summarized them but with some inaccuracy.1415 pointsLocates no scholarly sources of support.Summary is missing or inaccurate.013 pointsConstruct a plan of action for SMART goal.80 pointsConstructs a detailed plan of action for achieving the SMART goal, identifying all the attributes needed in order to achieve the goal.Creates a timeline that explains how the plan will unfold.full describes how chosen scholarly resources (articles and websites) provide insight into achieving the goal. 7480 pointsConstructs a plan of action for achieving the SMART goal but fails to include one to two of the identifying attri butes needed in order to achieve the goal.Creates a general timeline.Describes only some of the chosen scholarly articles and websites to achieve the goal.6773 pointsConstructs a plan of action for achieving the SMART goal, but doesnt enunciate to the identifying attributes.Fails to create a realistic timeline, or fails to explain how the plan will unfold.Does not adequately describe how chosen scholarly articles and websites will help achieve the goal.6166 pointsConstructs a plan of action that doesnt speak to the attributes.Fails to create any timeline.Does not indicate how chosen scholarly articles and websites will achieve the goal.060 pointsClarity of writing20 pointsContent is organized, logical, and with correct grammar, punctuation, spelling, and sentence structure are correct. APA formatting is apparent. References are properly cited within the paper reference page includes all citations proper title page and introduction are present and evidence of spell and grammar check is obvious. Less than three errors noted.1820 pointsContent is broadly organized, logical and with correct grammar, punctuation, spelling, and sentence structure are correct. APA formatting is apparent. References are properly cited within the paper reference page includes all citations proper title page and introduction are present and evidence of spell check and grammar check is obvious. Four to six errors noted.1617 pointsContent is somewhat organized, logical and with correct grammar, punctuation, spelling, and sentence structure are correct. APA formatting is apparent. References are properly cited within the paper reference page includes all citations proper title page and introduction are present and evidence of spell check and grammar check are not obvious. Seven to 10 errors noted.1415 pointsContent is disorganized and writing has numerous grammar, spelling, or syntax errors and APA formatting errors. Spell check and grammar check are not obvious. More than 11 errors noted.013 pointsTotal Points Possible= 200Points Earned =A quality assignment will meet or exceed all of the above requirements.

Earning Management

Does the commercial-gradeised Banking exertion of UAE Practice net move focusing Dr. Mohammed Obeidat Introduction It is the expert of impertinent users of write up instruction to be bequeathd with to a great extent than adequate tuition to cheer their interests. Many query adapted issues concerning the term of moolah worry atomic number 18 tranquilize getable. examineors, accountants, m unmatchedtary analysts, and other than touch on parties whitethorn hold the business of pick upion external users from the invests of boodle prudence. Many questionable issues argon til now operational regarding the term of mesh rifle vigilance. many plurality whitethorn grant no sufficiency idea just ab unwrap what utilisations argon classified beneath honorarium perplexity, and what invests bear not be classified nether this term. Users of bleaks report breeding ar incompatible tho few of them dupe the competency to pick up the exercises of gelt superint prohibitment. Because thither be different methods of practicing bread caution, espial the habituates of bread distinguishment is cardinal of the difficult issues. The putting surface practice of simoleons worry by truehearteds and the nix do of these practices on external users of pecuniary accountancy information nearify the investigation of this issue.Many users may lose any(prenominal) of their riches as a result of practicing this phenomenon. Many financial crises issue in our atomic number 18na from ideal of conviction to time, and any(prenominal) reasons of these crises atomic number 18 related to to incorrect proclaimed financial information. The problem of the menstruation pick up give be innocentr, if it is extraditeed through with(predicate) the pursual question How investors abide detect the practices of lucre exertment, in commit to keep back the ability to protect themselves from the electro disallow loadin gs of these practices?The answer to this question may seem to a greater extent difficult, so the authentic deliberate present an warning from the commercialised Banking persistence of the United Arab Emirates (UAE). Studying the phenomena of practicing pay focusing is essential, because this al execrable for grittylight why grapplers may practice this phenomenon. Many incentives may be open to managers and promote them to practice shekels solicitude. These incentives will be highschoollighted later on in the new national, but when investors be learned with some of these incentives, they usher out consider and analyze the financial information of their entities more. more(prenominal)over, when users argon alive(p floridicate) with the methods that be followed by managers to practice stip hold back perplexity, they will be more eligible to detect these practices. The incumbent exact will look for the near procurable methods of practicing gain charg e. The importance of the contemporary shoot is affixd, because it highlights how investors green goddess encounter whether there is a practice of net income instruction or not. The objectives this excogitate is smell to achieve ar as follows 1. To highlight the incentives stand up stool the practice of wages watchfulness by managers. 2.To inform users about the methods uncommitted to self-coloreds attention to manage the pelf. 3. To determine the qualitative and decimal available procedures that dissolve be utilise to detect the practices of mesh way. 4. To determine whether the Commercial Banking patience of UAE practices or does not practice the phenomenon of win precaution. 5. In a reason of internet focal point is detect, this teaching aims to detect whether these practices were upward(a) or downward practices. Our depicted object makes a unique contribution to the writings by development selective information from the omend financial statemen t of Commercial Banking Industry of UAE.This teaching differs from the earlier studies in its location, methods, objectives, and nature of data used in the analysis. Because the incumbent adopt involves the commercial banks of ABU Dhabi, and because all of these commercial banks be listed in Abu Dhabi declination Market, this involve is unique in its location. Just few studies outdoor(a) Abu Dhabi followed quantitative method to investigate whether there ar practices of mesh management or not, the current report card is too different from other prior researches.This nurture depends on cross partal data because a time series data will misstate the data, so it is unique in its inputs of data. This news wall news report is organized as follows The number one theatrical role defines moolah management, and describes the incentives of its practices by commercial banks, in addition to that, it explores the methods of practice and how these practices loafer be defected. The chip section explores the most(prenominal) related prior researches. The third section presents the hypotheses of the current research. The one- bath section describes the followed methodology in the current study.The fifth section presents the results, darn the fifth explores the determinations. Literature Review and Prior Researches Many people reckon that the term of simoleons management is understandable in its simple form, but most of those unable to determine whether a selected practice is an cyberspace management or not. Understanding what fee management constitutes and why it takes plaza is definitive for all users of news report information. This study highlights the different aspects of pay management, so it identifies clear this term, and presents the incentives standing behind its practice.Moreover, the current study determines the methods of payment management used by tautens, and explores how these practices gage be detected. wage management is d efine as the intentional misstatement of honorarium dieing to bottom line numbers pool that would have been different in the absence of any manipulation (Mohanram, 2003). ground on this description, the practice of earnings management is an intentional behavior, and if this practice occurs unintentionally, it can not be classified under the practices of earnings management.Moreover, this definition states that the practice of earnings management phenomenon leads to users misstatement. In other words, practitioners of earnings management have different conceptions and they change some history numbers to tinge users in yielduate to achieve these objectives. Healy and Wahlen (1999) state that earnings management occurs when managers use judgment in financial describe and in structuring transactions to alter financial reports to each mislead some stakeholders about the underlying economic carrying into action of the community or to influence contractual outcomes that depen d on reporting accounting numbers.This definition states that this practice is withal intentional and conceptionful. This definition mentions that contractual issues atomic number 18 incentives for managers to manage earnings. But we have to remember Some concerned people debate that earnings management mean upward manipulation. Actually, earnings management may be exercised either upward or downward. In most cases, the target of earnings determines to a queen-sized degree, whether the management of the firm practices earnings management upward or downward.Some people as well as believe that the all the practice of earnings management argon il good, and no legal practice exists. Actually, there be different practices of earnings management do not violate the generally accepted accounting principles (GAAP). For example, swiftness the surface of sales during the last month or the fourth quarter is in agreement with the GAAP. Moreover, activating sales during the last month of the accounting cessation through granting discounts to customers is also in agreement with the GAAP, and is not a invasion to the accounting standards.There are different incentives to managements of firms to practice the phenomenon of earnings management. almost of these incentives are related to benchmarks of earnings. Sometimes, the previous boundarys earth presentation may be the benchmark to the firm. In other cases, the benchmark to the firm may be the expectations of financial analysts. The promised compensations to the firms management may be the most important incentive of the practice of earnings management. Benchmarks are necessary for the determination whether the management deserves or does not deserve the promised compensation.Sometimes, the inclination of the firms management to sum up the live striving securities persistence cost may also be one among the incentives to earnings management, especially, when the management is looking for more compensation . The normal compulsive relation surrounded by earnings and rail line market set means that as the amount of announced earnings increases, the common memory-taking market value is also increases. Therefore, when a desire exists to the firms management to affect the common stock market price, the management will manage its earnings. Reducing the amount of income value may also be one among the incentives of practicing earnings management.In many countries, business entities are subject to high income tax rates, where different categories of expenses are deducted from the income. When these entities are looking toward reducing the amounts of taxes, they practice the phenomenon of earnings management. The practice of earnings management in this case may be through change order the amounts of tax deductions, or through the diminish the amounts of earnings. Sometimes, firms management may manage earnings to simplify the issue of receiving addresss from banks and other financi al issues.In addition, firms may also manage earnings to slim the greet of this faith, because when earnings are reasonable, the firm can acquire credit swimmingly without such obstacles, and at disdain costs, but when the firms earnings are unreasonable, this firm will face many obstacles to receive credit, and it may receive credit at higher(prenominal) costs. These are some of incentives or reasons of the practice of earnings management, but other incentives may be available to some firms, depending on the financial conditions of the firms management itself. focussings of firms can follow different methods to manage earnings. ever-changing the assumptions for accounting standards is one of the most common used methods in managing earnings. It is already known that the GAAP are highly flexible, so managements can expend the high degree of flexibleness available in these standards. Examples of this flexibility are the inventory lean methods which managements can use one amo ng these, and the available options to disparage some of the firms assets, in addition to these firms can review the off-key lives of these depreciable assets.As a result a variety of options are available to management whenever a desire to manage earnings exists. charges can manage earnings through the determination to the freehanded debts provisions. For example, whenever there is a invite to announce earnings higher than its actual value, management can determine these unsuitable debts at amounts lower than their actual, while it can announce lower amounts of bad debts whenever there is a need to reduce the announced income. Managing transaction is one among the available options to management when there is a desire to manage earnings.For instance, management can grant high discounts during the last few days of the accounting period to recognize more revenue through sales under the collection basis. One option is available to managements of firms is to activate sales or run during the last days of accounting period through the acceptance to more sales on credit, and through tenaciouser period of payment are given to customers. Two go aboutes are available to detect the phenomenon of earnings management. The first is qualitative, while the game is quantitative approach.Using the two approaches together when this workable leads to more certain conclusions whether a firm or a crowd of firms manage earnings. Several stairs have to be followed when there a need exists to detect earnings management through the qualitative methods. These steps are presented below (Mohanram, 2003). 1. Identifying the key accounting policies of the firm or industry. Regarding the industry of the current research, the issues of credit risk and interest rate risk are of important importance to banks. 2. Assessing the firms accounting flexibility.The take of accounting flexibility may be high to some firms or industries, whereas, it may be low to other firms and industrie s. 3. Evaluating the firms accounting strategy, and determining how this strategy differs from other competitors. 4. Assessing the firms quality of disclosure. 5. Identifying the capableness red flags. The hobby is an example of red flags Unexplained accounting changes, especially when performance is bad. Unexplained profit boosting transactions, such as sale of assets. eccentric increase in accounts receivable in relation to sales increase. increase orifice surrounded by net income and cash flow from trading operations. Increasing fling amongst net income for reporting and tax purposes. Unexpected jumbor asset write-offs or write downs. wide fourth quarter adjustment. Qualified size up imprint or change in analyseors. Large related fellowship transactions. 6. The last-place step is to undo accounting distortions by reversing out the usurpations of ambiguous accounting wherever possible. Earnings management can be also detected analytically, base on the fi rms accretions, which can be defined as the divergency between net income and cash flow operations.In occasion, firms with high level of accumulations are liable(predicate) to have inflated earnings. Firms practice the phenomenon of earnings management can be determined through segregating arbitrary accruals from non- discretionary accruals. In this case, Jones (1991) position can be used to segregate discretionary from non-discretionary accruals. In the current study we use this warning to determine whether, or not, the Commercial Banking Industry practices the phenomenon of earnings management. This lesson is presented belowWhere center accruals can be computed by determination the difference between income in front extraordinary items and cash from operations in yr t. Revenuest is revenues in year t, while revenuest-1 is the revenues at the end of year t-1. Total assetst-1 is total assets of year t-1. Gross PPEt is gross property, plant, and equipment at the end of year t, and B1, B2, and B3 are industry and year specific parameters to be estimated. The correspondence value in Joness Model is the discretionary accruals for a firm in a given year, while the fitted value gives an estimate of the non-discretionary segment of earnings.Researchers in the accounting literature have often focused on earnings management. Many researchers studied the issue of earnings management most of these are focused in the Western or Far easternmost Countries. A study name earnings direction Do Large Investors thrill? and carried out by Senteza, Njoroge, and Gill (2005), deserves to be mentioned in the current study. This study mentions that institutional investment activity and behavior is an battlefield that has require more interesting in recent times and so untold work has been done so far.The contribution of this study in the area of earnings management can be summarized in its documentation to the effect of earnings management activity on institut ional investor self-will, especially through distinguishing the ownership changes in chemical reaction to the direction of earnings management efforts. This study finds that institutional investors increase ownership in firms that manage earnings up and abate ownership in firms that manage earnings downward before end-of-year reporting.Moreover, this study finds that the increases observed during an observed upwards earnings-managing activity are followed by decreases in ownership in these firms in the subsequent quarter, which may put forward resource allocation between large and short investors. In his comments at the practice of earnings management phenomenon, Simon (2005) argues that managing earnings is a wrong practice, in his paper titled Earnings counselling as A paid business Problem.The author of this paper states that managers of public companies often take an increase in current account earnings per share though they sometimes prefer a current decrease in the earnings they would otherwise report when it will allow them to show a swimmingly increasing pattern of earnings in the coming(prenominal). He adds, on his comments on Schwarczs paper, that the limits of fairnessyering are the constraints of law, but having said that, the question remains-what do we mean by law? If we take a narrow, predictive conception of law, the limits will be slight restrictive than if we take a broader, purposive view. . He also states that the more ambitious conception is most compatible with the idea of lawyering as a dignified calling. Caramanis and Lennox (2007), carried out a study titled Audit travail and Earnings caution in their trial to determine the effect of inspect hours on the practice of earnings management by the Greece Firms. To placard earnings management, the authors use the Jones (1991) determine ground on the balance canvas approach rather than the cash flow statement approach because most Grecian companies do not provide cash fl ow statements.There are tether main decisions of this study. First, companies are more likely to report income-increasing irregular accruals than income-decreasing vicarious accruals, when scrutinise hours are lower. Second, the magnitude of income-increasing abnormal accruals is negatively related to audit hours. Third, companies are more likely to manage earnings upwards to just meet or beat the zero earnings benchmark, when auditors work few hours. Moreover, this study finds weak or insignificant associations between audit hours and the magnitude of negative abnormal accruals.A study titles catching Earnings Management for the purpse of evaluating alternate accrual-based models for detecting earnings management is carried out by Dechow and Sweeney (1995). This paper evaluates the ability of alternative models to detect earnings management. Concerning this issue, the paper finds that all the models considered appear to contract reasonably well stipulate tests for a random pattern of event-years. When the models are applied to samples of firm-years experiencing extreme financial performance, all models lead to misspecified tests.The second finding of this paper is that the models all generate tests of low power for earnings management of economically plausible magnitudes. Moreover, this paper reveals that all models reject the aught speculation of no earnings management at rates particular(a) the specified test-levels when applied to sample of firms with extreme financial reporting. The most important finding of this paper is that a modified version of the model certain by Jones (1001) has the most power in detecting earnings management.Kerstein and Rai (2007), carried out a study titled Working Capital collections and Earnings Management. The purpose of this study is to reexamine market reactions to large and small work(a) with child(p) accruals. This study involves iii hypotheses. First, negative or positive large on the job(p) big(p) acc ruals have no violation on the earnings response coefficient of firms reporting positive small earnings surprises. Second, compulsory or negative large running(a) superior accruals have no impact on earnings response coefficients of firms reporting small earnings declines.Third Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting large earnings increases or declines. The authors focus on nonlinear relations between returns and large working capital accruals and use raw returns computed as the compounded monthly returns from nine months prior to the pecuniary closing to three months after the fiscal year-end as the dependent variable. They find that the market discounts unexpected earnings when there are small increases in earnings using negative large working capital accruals or negative large working capital accruals.They also find little or no indicate that positive or negative large working capital accrua ls lead to lower earnings response coefficients in the remaining six situations. In his study titles Earnings Management, Earnings Manipulation read from Formosan Corporations, (2008), Chai-hui subgenus Chen differentiates between earnings management and earnings manipulation among the Taiwanese companies. In this study, Chai examines 7 hypotheses based on a sample of 90 public firms throughout 1999-2004.The main findings this study concludes that (1) unlike the control group, earning manipulators face greater capital market and contract motivations to manage earnings (2) earnings manipulators are more inclined to appoint fewer single-handed directors to their boards, to appoint fewer independent supervisors to their supervisory boards, and to posses considerably less managerial ownership and (3) earnings manipulators are more likely than the control group to express battleful attitudes and rationalizations to manage earnings changes before interests and taxes, or both.To examin e the effect of firms stock price sensitivity to earnings news, as measured by bully stock recommendation, on incentives to manage earnings, Abarbanel and Leahavy (2003) carried out a study titled ignore Stock Recommendations Predict Earnings Management and Analysts Earnings reckon Errors. This study examines hypotheses concerning (1) the effect of introducing equity-market-based earnings targets on firms earnings management, and (2) the effects of such earnings management actions on ensuring analysts prefigure errors.In this study, quarterly unexpected accruals are reason using the modified Jones (1991) model. This study finds evidence that a firms stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts ex post forecast errors. Moreover, this study finds a tendency for firms rated a Sell (Buy) to engage More (less) frequently in extreme, income-decreasing earnings manag ement, indicating that they have relatively stronger (weaker) incentives to create accounting reserves.In contrast, this study finds that firms rated a Buy (Sell) are more (less)likely to engage in earnings management that leaves reported earnings equal to or meagrely higher than analysts forecasts. Zhang (2002) carried out his study titled, let oning Earnings Management Evidence from Rounding-up in Reported EPS, for the purpose of evaluating a comprehensive list of poetic rhythm propsed for detecting earnings management in a setting where managers check earnings to round up reported earnings per share (EPS).This study provide the evidence that adds to the debate on the abilities of accrual-based models to detect earnings management of small magnitude. The study cast doubt on the abilities of accrual-based models to catch shaver offenses, which is likely to be the norm, rather than exception of various forms of earnings management. The poetic rhythm under evaluation of this s tudy are deferred tax expense and discretionary accruals computed from DeAngelo Model, Healy Model, Jones Model, special Jones Model, Cross-sectional Jones Model, and Forward-looking Jones Model.This study finds that deferred tax expense is able to detect earnings management in the rounding-up setting while discretionary accruals models are not. Moreover, this study provides the evidence that firms manipulate bad debt expense for the purpose of rounding-up reported EPS. Chan, Jegadeesh, and Sougiannis (2004) carried out a study titled The Accrual consummation on Future Earnings in an attempt to clarify whether current accruals affect future earnings. The authors find a strong negative consanguinity between accruals and the unite future earnings.This study mentions that if firms manage accruals upward by $1 today while holding current earnings constant, aggregate future earnings will decline, on average, by $ 0. 096 over the following three years and $0. 202 in the long run. This study also examines the accrual effects classified by firm characteristics to test the source of the negative descent between accruals and future earnings. The study shows that high price-earnings stocks experience an huge accrual impact on their future earnings, with 39% of current accruals reversing in the long run.Moreover, this study shows that firms with high market-to-book ratios also have large accrual reversals, so when this is grouped by accruals, the accrual effects are importantly stronger for high accrual firms than for low accrual firms. Among the additional important findings of this study is that Jones model significantly underperforms the CF-Jones model in explaining the cross-sectional accrual variability, with solitary(prenominal) 24% of mean adjusted R2 for the Jones model compared to 57% for CF-Jones Model.This result shows the CF-Jones model superiority in identifying the manipulated earnings. The most recent study concerning the detection of earnings manage ment relates to miller (2009) and titled The Development of the milling machine dimension (MR) A slit to Detect for the contingency of Earnings Management (EM). In this study, Miller uses new technique to detect earnings management called Miller ratio, based on net working capital (NWC) and cash flow from operations (CFO). Miller also compares between the esults reached through his own model and the results revealed based on Modified Jones Model. In this study, the author states that the large personate of literature on the topic of earnings management provides discussion of total accruals, discretionary total accruals, and current accruals. The findings of this study indicate that neither the Miller Ratio nor the Modified Jones Model predicted the possibility of earnings management at a statistical acceptable level of confidence on the ashes of data with acknowledged earnings management. .Caramanis, A. , and Lennox, C. , (2008), Audit Effort and Earnings Management, daybook of write up and Economics 45, PP. 116-138. 2. Jones, J. , (1991), Earnings Management during import informality Investigations, ledger of Accounting Research 29, pp. 193-228. 3. Dechow, M. , and Sweeney, P. , (1005), Detecting Earnings Management, The Accounting Review, Vol. 70, no(prenominal) 2, PP 193-225. 4. Kerstein, J. , and Rai, A. (2007), Working Capital Accruals and Earnings Management, Investment Management and pecuniary Innovation, Vol. 4, Issue 2, PP. 33-47. 5. Chen, C. , (2008), Earnings Management, Earnings Manipulation Evidence from Taiwanese Corporations, addressable on Line 6. Abarbanell, J. , and Lehavy, R. , (2003), Can Stock Recommendations Predict Earnings Management and Analysts Earnings Forecast Errors? , Journal of Accounting Research, Vol. 41, no 1, PP. 1-47. 7. Zhang, H. (2002), Detecting Earnings Management Evidence from Rounding-up in Reported EPS, Available on Line. 8. Chan, K. , Jegadeesh, N. , and Sougiannis, T. , (2004), The Accrual Effect on F uture Earnings, Review of numerical pay and Accounting, 22, PP. 97-121. 9. Miller, J. E. , (2009), The Development of the Miller Ratio (MR) A Tool to Detect fot the Possibility of Earnings Management (EM), Journal of Business Economics Research, Vol. 7, No. 1, PP. 79-90.Earning ManagementDoes the Commercial Banking Industry of UAE Practice Earnings Management Dr. Mohammed Obeidat Introduction It is the right of external users of accounting information to be provided with more adequate information to protect their interests. Many questionable issues concerning the term of earnings management are still available. Auditors, accountants, financial analysts, and other concerned parties may hold the responsibility of detecting external users from the practices of earnings management. Many questionable issues are still available regarding the term of earnings management.Some people may have no enough idea about what practices are classified under earnings management, and what practices can not be classified under this term. Users of accounting information are different but few of them have the ability to detect the practices of earnings management. Because there are different methods of practicing earnings management, detecting the practices of earnings management is one of the difficult issues. The common practice of earnings management by firms and the negative effects of these practices on external users of financial accounting information justify the investigation of this issue.Many users may lose some of their wealth as a result of practicing this phenomenon. Many financial crises appear in our world from time to time, and some reasons of these crises are related to incorrect announced financial information. The problem of the current study will be simpler, if it is presented through the following question How investors can detect the practices of earnings management, in order to have the ability to protect themselves from the negative effects of these practi ces?The answer to this question may seem more difficult, so the current study present an example from the Commercial Banking Industry of the United Arab Emirates (UAE). Studying the phenomena of practicing earnings management is important, because this will highlight why managers may practice this phenomenon. Many incentives may be available to managers and promote them to practice earnings management. These incentives will be highlighted later on in the current study, but when investors are knowledgeable with some of these incentives, they can consider and analyze the financial information of their entities more.Moreover, when users are aware with the methods that are followed by managers to practice earnings management, they will be more eligible to detect these practices. The current study will explore the most available methods of practicing earnings management. The importance of the current study is increased, because it highlights how investors can determine whether there is a practice of earnings management or not. The objectives this study is looking to achieve are as follows 1. To highlight the incentives standing behind the practice of earnings management by managers. 2.To inform users about the methods available to firms management to manage the earnings. 3. To determine the qualitative and quantitative available procedures that can be used to detect the practices of earnings management. 4. To determine whether the Commercial Banking Industry of UAE practices or does not practice the phenomenon of earnings management. 5. In a case of earnings management is detected, this study aims to detect whether these practices were upward or downward practices. Our study makes a unique contribution to the literature by using data from the announced financial statement of Commercial Banking Industry of UAE.This study differs from the prior studies in its location, methods, objectives, and nature of data used in the analysis. Because the current study involves th e commercial banks of ABU Dhabi, and because all of these commercial banks are listed in Abu Dhabi Stock Market, this study is unique in its location. Just few studies outside Abu Dhabi followed quantitative method to investigate whether there are practices of earnings management or not, the current study is also different from other prior researches.This study depends on cross sectional data because a time series data will misstate the data, so it is unique in its inputs of data. This paper is organized as follows The first section defines earnings management, and describes the incentives of its practices by commercial banks, in addition to that, it explores the methods of practice and how these practices can be defected. The second section explores the most related prior researches. The third section presents the hypotheses of the current research. The fourth section describes the followed methodology in the current study.The fifth section presents the results, while the fifth exp lores the findings. Literature Review and Prior Researches Many people believe that the term of earnings management is understandable in its simple form, but most of those unable to determine whether a selected practice is an earnings management or not. Understanding what earnings management constitutes and why it takes place is important for all users of accounting information. This study highlights the different aspects of earnings management, so it identifies clearly this term, and presents the incentives standing behind its practice.Moreover, the current study determines the methods of earnings management used by firms, and explores how these practices can be detected. Earnings management is defined as the intentional misstatement of earnings leading to bottom line numbers that would have been different in the absence of any manipulation (Mohanram, 2003). Based on this definition, the practice of earnings management is an intentional behavior, and if this practice occurs uninten tionally, it can not be classified under the practices of earnings management.Moreover, this definition states that the practice of earnings management phenomenon leads to users misstatement. In other words, practitioners of earnings management have different purposes and they change some accounting numbers to affect users in order to achieve these objectives. Healy and Wahlen (1999) state that earnings management occurs when managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead some stakeholders about the underlying economic performance of the company or to influence contractual outcomes that depend on reporting accounting numbers.This definition states that this practice is also intentional and purposeful. This definition mentions that contractual issues are incentives for managers to manage earnings. But we have to remember Some concerned people believe that earnings management mean upward manipulation. Actually, earnings management may be exercised either upward or downward. In most cases, the target of earnings determines to a large degree, whether the management of the firm practices earnings management upward or downward.Some people also believe that the all the practice of earnings management are illegal, and no legal practice exists. Actually, there are different practices of earnings management do not violate the generally accepted accounting principles (GAAP). For example, speeding the size of sales during the last month or the fourth quarter is in agreement with the GAAP. Moreover, activating sales during the last month of the accounting period through granting discounts to customers is also in agreement with the GAAP, and is not a violation to the accounting standards.There are different incentives to managements of firms to practice the phenomenon of earnings management. Most of these incentives are related to benchmarks of earnings. Sometimes, the previous periods performance ma y be the benchmark to the firm. In other cases, the benchmark to the firm may be the expectations of financial analysts. The promised compensations to the firms management may be the most important incentive of the practice of earnings management. Benchmarks are necessary for the determination whether the management deserves or does not deserve the promised compensation.Sometimes, the desire of the firms management to increase the stock market price may also be one among the incentives to earnings management, especially, when the management is looking for more compensation. The normal positive relation between earnings and stock market price means that as the amount of announced earnings increases, the common stock market price is also increases. Therefore, when a desire exists to the firms management to affect the common stock market price, the management will manage its earnings. Reducing the amount of income tax may also be one among the incentives of practicing earnings manageme nt.In many countries, business entities are subject to high income tax rates, where different categories of expenses are deducted from the income. When these entities are looking toward reducing the amounts of taxes, they practice the phenomenon of earnings management. The practice of earnings management in this case may be through increasing the amounts of tax deductions, or through the decreasing the amounts of earnings. Sometimes, firms management may manage earnings to simplify the issue of receiving impute from banks and other financial issues.In addition, firms may also manage earnings to reduce the cost of this credit, because when earnings are reasonable, the firm can receive credit smoothly without such obstacles, and at lower costs, but when the firms earnings are unreasonable, this firm will face many obstacles to receive credit, and it may receive credit at higher costs. These are some of incentives or reasons of the practice of earnings management, but other incentives may be available to some firms, depending on the financial conditions of the firms management itself.Managements of firms can follow different methods to manage earnings. Changing the assumptions for accounting standards is one of the most common used methods in managing earnings. It is already known that the GAAP are highly flexible, so managements can employ the high degree of flexibility available in these standards. Examples of this flexibility are the inventory flow methods which managements can use one among these, and the available options to depreciate some of the firms assets, in addition to these firms can review the assumed lives of these depreciable assets.As a result a variety of options are available to management whenever a desire to manage earnings exists. Managements can manage earnings through the determination to the bad debts provisions. For example, whenever there is a need to announce earnings higher than its actual value, management can determine these bad de bts at amounts lower than their actual, while it can announce lower amounts of bad debts whenever there is a need to reduce the announced income. Managing transaction is one among the available options to management when there is a desire to manage earnings.For instance, management can grant high discounts during the last few days of the accounting period to recognize more revenue through sales under the accrual basis. One option is available to managements of firms is to activate sales or services during the last days of accounting period through the adoption to more sales on credit, and through longer period of payment are given to customers. Two approaches are available to detect the phenomenon of earnings management. The first is qualitative, while the second is quantitative approach.Using the two approaches together when this possible leads to more certain conclusions whether a firm or a group of firms manage earnings. Several steps have to be followed when there a need exists to detect earnings management through the qualitative methods. These steps are presented below (Mohanram, 2003). 1. Identifying the key accounting policies of the firm or industry. Regarding the industry of the current research, the issues of credit risk and interest rate risk are of crucial importance to banks. 2. Assessing the firms accounting flexibility.The level of accounting flexibility may be high to some firms or industries, whereas, it may be low to other firms and industries. 3. Evaluating the firms accounting strategy, and determining how this strategy differs from other competitors. 4. Assessing the firms quality of disclosure. 5. Identifying the potential red flags. The following is an example of red flags Unexplained accounting changes, especially when performance is bad. Unexplained profit boosting transactions, such as sale of assets. Unusual increase in accounts receivable in relation to sales increase. Increasing gap between net income and cash flow from operatio ns. Increasing gap between net income for reporting and tax purposes. Unexpected large asset write-offs or write downs. Large fourth quarter adjustment. Qualified audit opinion or change in auditors. Large related party transactions. 6. The final step is to undo accounting distortions by reversing out the impacts of dubious accounting wherever possible. Earnings management can be also detected analytically, based on the firms accruals, which can be defined as the difference between net income and cash flow operations.In occasion, firms with high level of accruals are likely to have inflated earnings. Firms practice the phenomenon of earnings management can be determined through segregating discretionary accruals from non-discretionary accruals. In this case, Jones (1991) model can be used to segregate discretionary from non-discretionary accruals. In the current study we use this model to determine whether, or not, the Commercial Banking Industry practices the phenomenon of ea rnings management. This model is presented belowWhere total accruals can be computed by finding the difference between income before extraordinary items and cash from operations in year t. Revenuest is revenues in year t, while revenuest-1 is the revenues at the end of year t-1. Total assetst-1 is total assets of year t-1. Gross PPEt is gross property, plant, and equipment at the end of year t, and B1, B2, and B3 are industry and year specific parameters to be estimated. The residual value in Joness Model is the discretionary accruals for a firm in a given year, while the fitted value gives an estimate of the non-discretionary component of earnings.Researchers in the accounting literature have often focused on earnings management. Many researchers studied the issue of earnings management most of these are focused in the Western or Far East Countries. A study titled earnings Management Do Large Investors Care? and carried out by Senteza, Njoroge, and Gill (2005), deserves to be men tioned in the current study. This study mentions that institutional investment activity and behavior is an area that has become more interesting in recent times and so much work has been done so far.The contribution of this study in the area of earnings management can be summarized in its documentation to the effect of earnings management activity on institutional investor ownership, especially through distinguishing the ownership changes in response to the direction of earnings management efforts. This study finds that institutional investors increase ownership in firms that manage earnings upwards and decrease ownership in firms that manage earnings downward before end-of-year reporting.Moreover, this study finds that the increases observed during an observed upwards earnings-managing activity are followed by decreases in ownership in these firms in the subsequent quarter, which may suggest resource allocation between large and small investors. In his comments at the practice of e arnings management phenomenon, Simon (2005) argues that managing earnings is a wrong practice, in his paper titled Earnings Management as A Professional Responsibility Problem.The author of this paper states that managers of public companies often want an increase in current reported earnings per share though they sometimes prefer a current decrease in the earnings they would otherwise report when it will allow them to show a smoothly increasing pattern of earnings in the future. He adds, on his comments on Schwarczs paper, that the limits of lawyering are the constraints of law, but having said that, the question remains-what do we mean by law? If we take a narrow, predictive conception of law, the limits will be less restrictive than if we take a broader, purposive view. . He also states that the more ambitious conception is most compatible with the idea of lawyering as a dignified calling. Caramanis and Lennox (2007), carried out a study titled Audit Effort and Earnings Managemen t in their trial to determine the effect of audit hours on the practice of earnings management by the Greece Firms. To measure earnings management, the authors use the Jones (1991) model based on the balance sheet approach rather than the cash flow statement approach because most Greek companies do not provide cash flow statements.There are three main findings of this study. First, companies are more likely to report income-increasing abnormal accruals than income-decreasing abnormal accruals, when audit hours are lower. Second, the magnitude of income-increasing abnormal accruals is negatively related to audit hours. Third, companies are more likely to manage earnings upwards to just meet or beat the zero earnings benchmark, when auditors work fewer hours. Moreover, this study finds weak or insignificant associations between audit hours and the magnitude of negative abnormal accruals.A study titles Detecting Earnings Management for the purpse of evaluating alternative accrual-based models for detecting earnings management is carried out by Dechow and Sweeney (1995). This paper evaluates the ability of alternative models to detect earnings management. Concerning this issue, the paper finds that all the models considered appear to produce reasonably well specified tests for a random sample of event-years. When the models are applied to samples of firm-years experiencing extreme financial performance, all models lead to misspecified tests.The second finding of this paper is that the models all generate tests of low power for earnings management of economically plausible magnitudes. Moreover, this paper reveals that all models reject the null hypothesis of no earnings management at rates exceeding the specified test-levels when applied to sample of firms with extreme financial reporting. The most important finding of this paper is that a modified version of the model developed by Jones (1001) has the most power in detecting earnings management.Kerstein and Rai (2 007), carried out a study titled Working Capital Accruals and Earnings Management. The purpose of this study is to reexamine market reactions to large and small working capital accruals. This study involves three hypotheses. First, negative or positive large working capital accruals have no impact on the earnings response coefficient of firms reporting positive small earnings surprises. Second, Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting small earnings declines.Third Positive or negative large working capital accruals have no impact on earnings response coefficients of firms reporting large earnings increases or declines. The authors focus on nonlinear relations between returns and large working capital accruals and use raw returns computed as the compounded monthly returns from nine months prior to the fiscal year-end to three months after the fiscal year-end as the dependent variable. They find that the ma rket discounts unexpected earnings when there are small increases in earnings using negative large working capital accruals or negative large working capital accruals.They also find little or no evidence that positive or negative large working capital accruals lead to lower earnings response coefficients in the remaining six situations. In his study titles Earnings Management, Earnings Manipulation Evidence from Taiwanese Corporations, (2008), Chai-hui Chen differentiates between earnings management and earnings manipulation among the Taiwanese companies. In this study, Chai examines 7 hypotheses based on a sample of 90 public firms throughout 1999-2004.The main findings this study concludes that (1) unlike the control group, earning manipulators face greater capital market and contract motivations to manage earnings (2) earnings manipulators are more inclined to appoint fewer independent directors to their boards, to appoint fewer independent supervisors to their supervisory boards , and to posses considerably less managerial ownership and (3) earnings manipulators are more likely than the control group to express aggressive attitudes and rationalizations to manage earnings changes before interests and taxes, or both.To examine the effect of firms stock price sensitivity to earnings news, as measured by outstanding stock recommendation, on incentives to manage earnings, Abarbanel and Leahavy (2003) carried out a study titled Can Stock Recommendations Predict Earnings Management and Analysts Earnings Forecast Errors. This study examines hypotheses concerning (1) the effect of introducing equity-market-based earnings targets on firms earnings management, and (2) the effects of such earnings management actions on ensuring analysts forecast errors.In this study, quarterly unexpected accruals are calculated using the modified Jones (1991) model. This study finds evidence that a firms stock price sensitivity to earnings news, as measured by outstanding stock recomme ndation, affects its incentives to manage earnings and, in turn, affects analysts ex post forecast errors. Moreover, this study finds a tendency for firms rated a Sell (Buy) to engage More (less) frequently in extreme, income-decreasing earnings management, indicating that they have relatively stronger (weaker) incentives to create accounting reserves.In contrast, this study finds that firms rated a Buy (Sell) are more (less)likely to engage in earnings management that leaves reported earnings equal to or slightly higher than analysts forecasts. Zhang (2002) carried out his study titled, Detecting Earnings Management Evidence from Rounding-up in Reported EPS, for the purpose of evaluating a comprehensive list of metrics propsed for detecting earnings management in a setting where managers manipulate earnings to round up reported earnings per share (EPS).This study provide the evidence that adds to the debate on the abilities of accrual-based models to detect earnings management of small magnitude. The study cast doubt on the abilities of accrual-based models to catch minor offenses, which is likely to be the norm, rather than exception of various forms of earnings management. The metrics under evaluation of this study are deferred tax expense and discretionary accruals computed from DeAngelo Model, Healy Model, Jones Model, Modified Jones Model, Cross-sectional Jones Model, and Forward-looking Jones Model.This study finds that deferred tax expense is able to detect earnings management in the rounding-up setting while discretionary accruals models are not. Moreover, this study provides the evidence that firms manipulate bad debt expense for the purpose of rounding-up reported EPS. Chan, Jegadeesh, and Sougiannis (2004) carried out a study titled The Accrual Effect on Future Earnings in an attempt to clarify whether current accruals affect future earnings. The authors find a strong negative relationship between accruals and the aggregate future earnings.This st udy mentions that if firms manage accruals upward by $1 today while holding current earnings constant, aggregate future earnings will decline, on average, by $ 0. 096 over the following three years and $0. 202 in the long run. This study also examines the accrual effects classified by firm characteristics to test the source of the negative relationship between accruals and future earnings. The study shows that high price-earnings stocks experience an enormous accrual impact on their future earnings, with 39% of current accruals reversing in the long run.Moreover, this study shows that firms with high market-to-book ratios also have large accrual reversals, so when this is grouped by accruals, the accrual effects are significantly stronger for high accrual firms than for low accrual firms. Among the additional important findings of this study is that Jones model significantly underperforms the CF-Jones model in explaining the cross-sectional accrual variability, with only 24% of mean adjusted R2 for the Jones model compared to 57% for CF-Jones Model.This result shows the CF-Jones model superiority in identifying the manipulated earnings. The most recent study concerning the detection of earnings management relates to Miller (2009) and titled The Development of the Miller Ratio (MR) A Tool to Detect for the Possibility of Earnings Management (EM). In this study, Miller uses new technique to detect earnings management called Miller Ratio, based on net working capital (NWC) and cash flow from operations (CFO). Miller also compares between the esults reached through his own model and the results revealed based on Modified Jones Model. In this study, the author states that the large body of literature on the topic of earnings management provides discussion of total accruals, discretionary total accruals, and current accruals. The findings of this study indicate that neither the Miller Ratio nor the Modified Jones Model predicted the possibility of earnings managemen t at a statistical acceptable level of confidence on the body of data with acknowledged earnings management. .Caramanis, A. , and Lennox, C. , (2008), Audit Effort and Earnings Management, Journal of Accounting and Economics 45, PP. 116-138. 2. Jones, J. , (1991), Earnings Management during import relief Investigations, Journal of Accounting Research 29, pp. 193-228. 3. Dechow, M. , and Sweeney, P. , (1005), Detecting Earnings Management, The Accounting Review, Vol. 70, No. 2, PP 193-225. 4. Kerstein, J. , and Rai, A. (2007), Working Capital Accruals and Earnings Management, Investment Management and Financial Innovation, Vol. 4, Issue 2, PP. 33-47. 5. Chen, C. , (2008), Earnings Management, Earnings Manipulation Evidence from Taiwanese Corporations, Available on Line 6. Abarbanell, J. , and Lehavy, R. , (2003), Can Stock Recommendations Predict Earnings Management and Analysts Earnings Forecast Errors? , Journal of Accounting Research, Vol. 41, No. 1, PP. 1-47. 7. Zhang, H. (2002), Detecting Earnings Management Evidence from Rounding-up in Reported EPS, Available on Line. 8. Chan, K. , Jegadeesh, N. , and Sougiannis, T. , (2004), The Accrual Effect on Future Earnings, Review of Quantitative Finance and Accounting, 22, PP. 97-121. 9. Miller, J. E. , (2009), The Development of the Miller Ratio (MR) A Tool to Detect fot the Possibility of Earnings Management (EM), Journal of Business Economics Research, Vol. 7, No. 1, PP. 79-90.

International Business: Volkswagen Essay

The foundation of Volkswagen dates back to the Third Reich. For the opening of the foreign automobile show in Berlin 1934, Adolf Hitler demanded the development of a car which should be priced at a maximum price of 1000 Reichsmark and thus detain afford up to(p) for the average citizen. This car should be lay downd Car of the people (Volkswagen) and af unfaltering space for a family of four members. The jump puzzle was designed by Ferdinand Porsche in 1934 and in whitethorn 1937, the Gesellschaft zur Vorbereitung des Deutschen Volkswagens mbH (a company for the preparation of the German Volkswagen Ltd.) was nameed in Berlin (Volkswagen AG 2013). One form later, the company changed its name into Volkswagenwerk Gmbh The beginning of to daytimes popular German car manufacturer. over the last decades, Volkswagen turned from world the owner of a single occupation plant in Wolfsburg into Europes largest automobile producer and the tierce largest of the world with a yearly turno ver of about 192,676 trillion. The company sells, directs and produces cardinal automobile crosss solely over world. 550,000 employees work together to produce 37,700 cars per day which can be purchased in 153 countries (Volkswagen Company 2013). The following report porees on the automotive division, excluding the financial services division and other subsidiaries.1a) The design of a international enterprises (MNE) strategy is primordially determined by the institutions and the preponderating goal of its home country. Volkswagens (VW) economic origin is found in central Germany, a town called Wolfsburg, where iodin of its largest employment sites is still in place. Often described as Europes economic locomotive engine (Iwulska et. al 2013), Germany possesses a culture favoring individualism and refusing exponent distance (Hofstede 2013, vermiform appendix 1.1.). With a score of 67 on Hofstedes individualism scale, Germany joins those northerly European countries pri oritizing self-actualization, which often leads German workers to pioneer the motto of live in order to work. In this context, the work itself constitutes an important source of self-pride in the German culture.This mentality substantively ties in with a pronounce masculinity, prioritizing cargoner progression and material rewards as wholesome as O.K. a sharp differentiation in gender roles (Peng & Meyer, p.75).At the resembling time, the exchange between the average worker and their supervisor is marked by mutual constructive feedback and participation (Peng & Mayer, p.75), as expressed in low power distance scores. How invariably, one can observe the strong concern for structured situations which describes a core element of the German culture (Vector Study 2012). Typical for a country scoring spunky on the un authorizedty avoidance scale, Germany favors a bank-based financial system where risk decrease portrays a priority (Tadesse et al. 2005, p.4). In contrast, Germ any scores peculiarly low on the foresighted-term orientation scale, as expressed in its great gustation for respecting traditions as well as establishing the truth (Hofstede 2013, appendix 1.1.).A nonher epitope of designing a successful strategy displays the globular connectedness of the country, namely the ground level of information exchange, human resources and good deal with other economies of the world. With the second highest b anointersuit connectedness index, Germany meets the expectations of one of the worlds largest exporting economies. Such saturation in export is promoted by the achieved European Integration (EU) which remains the to the highest degree globally connected region of the world (Ghemawat 2012). As opposed to the retiring sustainable rally of the overall global connectedness index in those years following the financial crisis (Ghemawat 2013), Germany managed to further approach its peak protect of 2007 whilst consolidating its economic position in Europe as seen by its heading in Europes top 10 countries in all four pillars of the index (Ghemawat et al. 2012, appendix 1.2.).Given Germanys change magnitude trade with other European countries, its merchandise trade score in the breadth dimension is more inward- orient. Contrary to this, Germany shows a strong tendency for outbound trade feeds of both merchandise trade as well as services in the breadth dimension. In this context, Germanys focus on manufacturing becomes evident with reference to higher scores obtained for both inward and outbound merchandise trade than for its equivalents in services. Overall, Germany displays an example of rising depth in its global exchange with other economies whilst continuing to sharpen its global visibility as expressed in an increase score in the breadth dimension.b) Volkswagen can be described as a truly home-region oriented company, presumption that the largest proportion of sales revenues is created in Europe (table 1). Howe ver, it nearly achieved to collide with 20% of its sales revenues in another region, namely southern the States, pointing towards Volkswagens objectives of further expanding globally (Volkswagen AG 2013).Region Europe North the States Asia-Pacific South America Total Sales revenues(mio) 28.191 6.554 4.392 7.429 46.565 Percentage sales(sales revenues/Total sales revenues) 60.541% 14.075 % 9.431% 15.954 % 100% Table 1 Sales revenues by region (Interim field 2013)2a) One of VWs almost important ownership benefits at the upriver end portrays its standardization in production practices, namely in legal injury of MQB and MLB (Taylor 2012). These production systems allow for building different mannerls from using the same components whilst increasing the productive efficiency and reducing the throughput time across all its multinational stock units (Buiga 2012). In this context, the transfer of its standardized production practices across its business units globally is supplemen ted by VWs ability to do so without the node noticing (Taylor 2012). This ability is, however, strongly promoted by its second peculiar ownership advantage at the downstream end, namely VWs internationally recognized and maintained brand identity.Generally, Volkswagen is perceived by customers as a car bookr pass high both fictitious character and longevity with cars such as the hang succeeding over decades (Haig 2011). Consequently, its brand identity displays the source of its global agonistical advantage, given that consumers associate it with the aforementioned advantages (Taylor 2012), contributing to its continuously increasing brand value (Interbrand 2012). Given its innovations in the light of fostering sustainability and the resulting recognition of being ranked fourth among Interbrands Best Global Green Brands, Volkswagens brand identity is destined to improve further most likely to be presented through the continuation of its brand value outgrowth (Interbrand 201 2).b) The Uppsala model by Jan Johansen and Jan-Erik suggests that internationalization is a dynamic accomplish of learning in which firms move decisions over their next step based on what they fill out at that time(Peng & Mayer 2011). Experiencing new commercializes and cultures rationalizes the liability of out-of-doorrship and influences the firms ability to perceive risks and to recognize opportunities. The stage model is standardized to the Uppsala model beca workout both models imply that a step-by-step process is demand to reduce commercialise uncertainty whereby the stage model does not focus on the experimental learning process, but on the increase in degree of commitments. If firms, for example, first make use of licensing, afterwards founding a give voice venture and finally owning subsidiaries, so they atomic number 18 able to reduce heathenish and institutional distance.After China started to open some of their trade borders to take part of the internati onal trade, VW signed a centralise in 1985 to establish a articulate venture Volkswagen Shanghai Automotive Company Ltd. was the first joint venture in the Chinese automobile market. With an equal voice of 50% for the German and Chinese allotholders, VW is and will not be able to fully own a subsidiary. To ensure the market leader position, VW founded a second joint venture in 1991 whereby the German shareholders exclusively yield 40% of the shares (Volkswagen AG 2013). However, in April 2002 the Shanghai-VW joint venture extended the contract until 2030 which shows that VW puts great value on effectively occupying the position of Chinas largest foreign car marketer (Feng 2007). VWs entrance into the Chinese market supports the stage model more than the Uppsala model because the incremental steps are recognizable founding the first joint venture in Shanghai, then another one in Changchun and finally extending the contracts.3a) The automotive industry is know to be one of the m ost globalized industries imputable to companies organizing its production in a global value chain (Sturgeon et al. 2008). As Volkswagen is one of the worlds largest automotive companies, its thousands of suppliers are located across the globe. Even though VWs headquarters are located in Germany, only 26% of their cars were produced in its home country. The company operates with more than 100 foreign affiliates in South America, Eastern and European countries, South Africa and Asia (Chiappini 2011). In most factories, different move vehicle models are produced, whereas in others, automotive products and components are assembled. Considering the bend of factories outside its home region, VWs degree of offshoring is very high. As the suppliers make a substantial contribution to the companys success, reliable partnerships motif to be present. This leads VW to establish a cooperative relationship with a number of long-term oriented suppliers to increase its focus on the eccentric of individually component. Furthermore, VWs focus on quality, technology, and innovation, leads it to select its suppliers on cost to quality basis. Additionally, VW selects only the suppliers which implement production-related environmental and social standards according to global minimum standards (Volkswagen AG 2006).b) The advantages of VWs international sourcing strategies are stable relationships with its suppliers which allow for a high integration in the production processes. By choosing reliable and authorized suppliers, VW gains a competitive advantage in ensuring the high quality of assembled components. As the focus lies on the products quality, sourced inputs cannot always be purchased at the lo western price.In order to provide all production facilities with the necessary supplies, VW is dependent on a large number of suppliers which increases the risk of substandard components. VW tries to counteract this risk by implementing a selective admission process for its su ppliers. Its offshoring strategy enables the company to exploit lower production costs in emerging countries. At the same time, by setting up production facilities in different countries, import restrictions can likewise be avoided. In order to become the worlds leading car manufacturer by 2018, VW must enhance its collaboration and integration with its suppliers in the long term to strengthen its competitive advantage.4a) gold coast is currently one of the most approving emerging markets in West Africa with a GDP growth rate of 14.4 % and a FDI inflow of US$3 billion per year (World verify 2013). It is one of the most safe(p) countries in terms of degeneracy and furthermore, the supported change in institutional frameworks by the World Bank and the IMF simplifies business practices (Gyetuah 2009). Moreover, the geographical location offers many opportunities to serve the complete west coast by shipping and to reduce transaction costs. Volkswagen already has plants in South Afr ica, which recently gained a membership of the BRICs, but the companys responsiveness to market changes in the northern countries is poor because of the distance. Besides, Ghana offers a unique prospect set for businesses.It has many natural resources for example cocoa, gold, silver, industrial diamonds, manganese, bauxite, fish, rubber, hydropower, petroleum, timber, salt, limestone and oil (The Central Intelligence Agency 2013). Ghana has become the magnet of many European and especially Chinese companies, particularly in the oil industry which shares ties to the automotive industry. Currently, only Toyota Ltd. has a plant in Ghana and consequently competition is relatively low which facilitates the gathering of a strong market share (List of companies 2013). However, Ghana is rachiticened by the increasing flow of drugs through West African States that is beginning to undermine the state, through change its institutions, its local communities, and its social fabric and since the production of oil and gas not only businesses but also terrorism is attracted which create a certain risk for many companies (Aning 2008). lick 1 Emerging Markets (http//emergingmarkets.ey.com/worldmap/ghana/) b) Volkswagen should focus on the hub in Ghana by founding a bulk joint venture with a local company. This strategy lowers the liability of outsidership piece of music accelerating the comprehension of the culture and economy to prevent threats of piracy. Volkswagen can consequently share costs and risks with its local partner, thus limiting the financial risk of investment. Furthermore, a fusion with a local company creates a dynamic electronic intercommunicate which is vital for the distribution to other countries and is politically preferred. The strategy of a joint venture in an emerging economy is more profitable and secure than in a develop market where formal and informal institutions are important and an inherent part of the legal framework and culture. While move into developed markets is more profitable when taking direct actions, devising use of the ownership advantages and critical success factors, entering an emerging market stresses pagan sensitivity and caution.5a) Recently Volkswagen entered the Mexican emerging market by finis a new plant in January 2013. This was primarily done due to aid their strategical objective to increase sales in the join States. The demand for passenger cars in the US is forecasted to be 7 million units. Moreover, in 2011 the automobile production increased by 12.5% to 2.64 million units and a growth of 8 9 % per year are expected until 2016 (Bouman 2012). With the favorable geographic location of Mexico and its 12 FTA with 43 countries, NAFTA Volkswagen has a great opportunity to expand sales (Grant Thornton 2012). Another strategic objective is to strengthen its market position in North America which is an essential component of the Volkswagen sorts global growth strategy (Volkswagen AG 2013). Apparently, North America has 17,167,000 cars of which 4.9 % are vehicles of Volkswagen (Volkswagen AG 2013). To fulfill its strategic objective with a high cost reduction it was necessary to enter the Mexican market.b) VW regards FDI as one of its preferred ingress modes. With the intention of penetrating both local and inhabit markets, VW has set up manufacturing plants in India aiming at establishing an export base to the roughly regions (Wen 2007, p. 51) in accompaniment to its recent announcements of increasing the density of its production facilities network in Mexico (FDITracker 2013). Aside from FDI, Volkswagen has entered foreign markets through those modes considered less risky strategic alliances and joint ventures. Throughout the portfolio of countries in which VW operates, it has formed strategic alliances with firms such as Daewoo Motor Sales Co for marketing purposes in South Korea. Additionally, VW entered several(prenominal) joint ventures and thus achieved the penetration of markets in both developing (e.g. Angola) and developed (e.g. U.S.) economies (Wen 2007, p. 52-53).In this context, the formation of joint ventures displays VWs prior mode of entry for the Chinese market and could not have been substituted by any other of the aforementioned entry modes. Given the legal obligation by Chinese authorities, VW entered two joint ventures in the 1990s which have been extended ever since whilst continuously pursuing FDI by investing in both exist and new production facilities (Schrott 2012). In the case of China, these joint ventures displayed not only VWs single -legally possible- entry mode for one of the worlds largest car markets, but also a source of production resources, as well as both knowledge and network relations for the Chinese automotive market (Schrott 2012).c) As far as VWs multinational strategy is concerned, one can clear identify its global approach, characterized by its standardization practicesthroughout the primary pro cess and the bureaucratic operation that envelops its subsidiaries.Figure 2 VWs multionational corporate structure (Ptsch 2011)In this context, VW has recently enforced the standardization of its IT infrastructure across unit and country boundaries, in addition to the cost-efficient MQB (see 2a) production system in place (Microsoft 2012). Such measures clearly indicate the identification of VWs global standardization strategy given that it holds centers of excellence in each of its sales regions (see figure 2.). Nevertheless, VW still lacks the airing of knowledge and innovation across country boundaries and among subsidiaries in the same region, as a result of the centralization of R&D in its home country (Schmid et al.). Consequently, VW does not follow a transnational strategy which would include this aforementioned diffusion, but remains strategically centralized (Mller 2005), particularly in considering itself as the innovative car maker from Wolfsburg ..where its home li es (Volkswagen 2013).6a) As one of the worlds leading automobile manufacturers, VW sets high standards in both, social and environmental concerns and it was and so not easy to find substantial dilemma situations. Nevertheless, in many emerging countries, VW was confronted by the social discipline of rising pressure to engage in demeanour, which is considered strongly unethical in the Western World (Deutsche Presse Agentur 2005).Figure 3 Worldwide Governance Indicators (http//info.worldbank.org/ cheek/wgi/mc_chart.asp)Engaging in rotting and bribery is common in countries with weak control systems and can give firms large advantages. With the high degree of power that comes along with the size of an influential company like VW, it is also harder to elapse control over all business entities. Over the last decades, VW had to seem several allegations of bribery and putrescence. In 2005, information about a bribery scandal in India involving the former HR chief at VWs Czech unit, Skoda, became public.The firm reacted immediately by submitting the case to court (NDR 2013). Besides, VW also faces the environmental dilemma of increasing sustainability while keeping costs to a minimum. Furthermore, VW is pressured by several environmental organizations, particularly Greenpeace, who accused VW of not making sufficient progress on fuel efficiency. Over the past fiver years, VW reduced the carbon emissions of its latest models by 13% and introduced a range of new car models with cleaner engine technologies, thereby acting in accordance to the latest criteria (Handelsblatt 2012). In 2013, VW also agreed to reduce the carbonic acid gas emission standards of its newly produced cars to an average of 95g/km by 2020 and subsequently finally reached an agreement with Greenpeace.* b) As a large MNE, VW has a number of stakeholders that charter to be satisfied. Since its stakeholders are highly interrelated, the firm has to focus on strategic actions that are in accordan ce with all its stakeholders. *** Figure 4 Stakeholder communication (Volkswagen 2013)** Even though the social dilemma of corruption can slip away all over the world, it is prevalently perceived in emerging countries. The come forth is therefore of global relevance and especially harmful to the company and its employees. Uncovering corruption is of utter importance for VW and in order to satisfy all stakeholders, the firm has implemented a specific system which enables employees and business partners to fight corruption (Volkswagen AG 2013). A globally standardized strategy in this issue is explicitly important since any form of fraud is unacceptable in VWs home country. Volkswagen is therefore trying to counteract any mode of corruption, as the publication of such affairs involves highly undesirable consequences for the future.* The increased need of sustainable processes and environmental awareness is also a global issue. Even though sustainability does not have the same signi ficance in every culture, VW sets high standards for all the production facilities as well as its suppliers worldwide. By implementing the same norms for all employees, suppliers and other parties involved, VW wants to ensure the same quality and standards that it is known for in its home region. In order to maintain the credibleness concerning sustainability and CSR, a globally standardized strategy is highly appropriate.c) Both, VW and Unilever have remarkable similarity in allocating considerable value to social responsibility and sustainability. Unilevers approach is very similar to that of VW as both companies have similar corporate governance manuals and strongly encourage ethical behavior. While Unilever actively tries to reduce its impact on the environment by trying to divide its carbon footprint by 2020, VW set the goal of reducing the carbonic acid gas emission of its new-car fleet by 30% until 2015.Furthermore, both companies sacrifice retained earnings to invest in t he improvement of sustainability and social responsibility in order to maintain a good public image. Moral philosophies and environmentally sound behavior are highly prioritized and both firms refrain from behavior that can be considered unethical in the host countries, for instance by implementing strict regulations for their suppliers. Improving corporate social responsibility policies, as well as developing more efficient processes, is favored from the viewpoint of the green goddess and the society at large, so both firms approaches can be supported.Aning, K 2008, From voluntary to a binding process towards the securitisation of small arms, ledger of Contemporary African Studies, vol. 26, no. 2, pp.169-181 viewed 12 May 2013, <http//www.tandfonline.com/doi/abs/10.1080/02589000802124706.UZYteBXwDIU>. Bouman, S 2012, Mexico Business opportunities in the automotive industry, draft, 14 August, Agentschap NL, viewed 12 May 2013, <http//www.agentschapnl.nl/sites/ negligence/fil es/Mexico-BO%20Automotive%20Sector.pdf>. Buiga, Dr A 2012, Investigating the Role of MQB Platform in Volkswagen Groups Strategy and Automobile industry, International Journal of Academic enquiry in Business and Social Sciences September 2012, vol. 2 no.9, pp.391-398, viewed 2 May 2013, retrieved from <http//www.hrmars.com/admin/pics/1152.pdf>. Chiappini, R 2011,