European Debt Crisis Essay Example

European Debt Crisis Essay Example European Debt Crisis Essay European Debt Crisis Essay Roger Williams University [emailprotected] Honors Theses RWU Theses 5-11-2011 The Financial Crisis and the European Network Georges G. Gautherin Roger Williams University, [emailprotected] rwu. edu This Thesis is brought to you for nothing and open access by the RWU Theses at [emailprotected] It has been acknowledged for consideration in Honors Theses by an approved manager of [emailprotected] For more data, if you don't mind contact [emailprotected] edu. Suggested Citation Gautherin, Georges G. , The Financial Crisis and the European Network (2011). Praises Theses. Paper 3. http://docs. rwu. edu/honors_theses/3 The Financial Crisis and the European Network Georges G. Gautherin II Bachelor of Arts International Relations Feinstein College of Arts and Sciences Roger Williams University May 2011 2 Table of Contents Abstract . 4 Lit Review . 5 Introduction Network 5 Economic Interdependence 8 Financial Crisis of 2007-2011 . 12 Analysis 3 The Unifying Factor 13 Greece 14 Ireland 19 Portugal . 2 Spain . 24 The United Kingdom . 26 France . 29 Germany 0 Implications for the Future .. 32 .. 35 3 Abstract The money related emergency between the long stretches of 2007 and 2011 influenced states wherever both inside and in their cooperations with each other. This paper tries to center upon European states and how they had the option to recuperate from the monetary emergency and how organizing between and among the states advanced because of the financial emergency. The investigation for this exposition will use a scope of examination materials to set up substantial definitions for systems administration and monetary relationship so as to take into account a sound investigation of the systems administration between states during the 2007-2011 budgetary emergency. Because of the ongoing timeframe of the point this exposition will draw from both contemporary and more established sources, including news stories, to help in the examination of the financial systems including European states. 4 Lit Review Introduction It is the objective of this paper to comprehend the impacts of the money related emergency inside Europe, and what the future ramifications are for the hubs in the European system through financial reliance. Using key ideas built up in the writing survey, this paper will develop definitions which will frame the reason for the contention that the hubs of the European system, for which the European Union fills in as the inside, are financially interconnected. Should the hubs end up being monetarily interconnected, the money related emergency will be the point whereupon their interconnectedness is tried, coming full circle in a reinforcing of the monetary ties between the hubs or a debilitating, or breaking down, of financial interconnectedness between the hubs of the European system. System The budgetary emergency of 2007-20110 is an occasion that has influenced each state in the worldwide framework. Having spread all through the world it is imperative to comprehend the manners by which states and transnational entertainers are associated and how this reliance influences every individual from the system. The idea of a system is one that has been around for quite a while as on-screen characters have been connecting with each other. It is the establishment for all other hypothetical ideas in worldwide and transnational relations and accordingly it is one that has pulled in a lot of exploration and investigation. In their article Network Analysis for International Relations the writers, Emilie M. Hafner-Burton, Miles Kahler, and Alexander H. Montgomery, set forth a 5 beginning meaning of system which they use for their composition: they guarantee systems are â€Å"a method of association which encourages aggregate ction and participation, practices impact, or fills in as a methods for worldwide governance† (Hafner-Burton, Kahler, Montgomery 560). Besides, systems use hubs, which can be â€Å"individuals or entertainers, for example, associations and states† (562) and it is these hubs that will permit this paper to perceive those included inside the system. They deliver the ir very own solid meaning plan of systems being â€Å"any set or sets of ties between any set or sets of nodes† (Hafner-Burton, Kahler, Montgomery 562). The subsequent definition delivered by Hafner-Burton, Kahler, and Montgomery’s article is one that is both easy to comprehend and extremely precise in its depiction. Consolidating their second definition with their clarification of hubs the peruser is given a definition asserting that systems can incorporate any number of state or non-state entertainers including themselves through ties of any sort or number, including yet not constrained to political, monetary, natural or human rights ties. While Hafner-Burton, Kahler, and Montgomery present systems from a fundamental perspective, portraying them as including any number of on-screen characters, Thomas Risse, in his work Transnational Actors and World Politics, gives his own, all the more explicitly characterized, variant of system which he characterizes as â€Å"forms of association described by intentional, corresponding, and level patterns† (255). From this we can go to a comprehension of how a system is kept up; that it isn't constantly portrayed by willful examples. It is workable for a state to be constrained, without wanting to, to participate in a system or activities with a system because of military, political or monetary activities by an attacker state. The system may likewise stretch out past proportional 6 examples between entertainers. There are circumstances where one on-screen character may act in a way that influences its partners legitimately and different states, with whom it has no immediate ties, in a roundabout way. At the end of the day, the activities of express An impact the activities of state B which influence, thus, the circumstance in state C. In this way state C is influenced by express A despite the fact that the two states are not officially associated with a coalition or other explicit universal system. Intently looking like the definition set out by Hafner-Burton, Kahler, and Montgomery is Keohane and Nye’s depiction of systems, with respect to transnational relations, is the â€Å"contacts, alliances, and cooperations across state limits that are not constrained by the focal international strategy organs of governments† (Nye and Keohane 331). Moreover they note that substances that show up on the global scale that are non-states can become entertainers, suggesting that states too can be on-screen characters; as a reality both state and non-state on-screen characters can participate in these organized associations, as indicated by Nye and Keohane (330). The utilization of Hafner-Burton, Kahler, and Montgomery’s article will permit this paper to manufacture the establishment for its investigation of the monetary association of the European state and non-state on-screen characters in reacting to the money related emergency of 2007-2011, with its straightforward yet broadlyencompassing definition. The definition gave by Thomas Risse, while valuable in its own right, doesn't completely fit with the course this paper tries to take and is hence disposed of for the definition gave by Keohane and Nye. Their definition is very helpful in that it proposes that entertainers take an interest in relations across state limits which ought to be clarified because of the way that non-state on-screen characters could work together exclusively inside the state, satisfying the prerequisite of a tie 7 between two on-screen characters yet with the end goal of this paper a system centering upon the global framework is unquestionably more advantageous than one working just inside one state. The idea of ‘networks,’ as used by this paper, is one that joins components from Keohane and Nye and from the article by Hafner-Burton, Kahler, and Montgomery; permitting this paper to characterize arranges as â€Å"any set or sets of ties between any set or sets of nodes† (Hafner-Burton, Kahler, Montgomery 562), with hubs being states as well as non-state on-screen characters as depicted in their article, â€Å"interacting across state boundaries† (Nye and Keohane 330). With this meaning of systems the paper can move forward and keep assembling its establishment. Financial Interdependence Though the idea of systems set out above can be utilized in any case in which there are communications across state limits by different hubs this paper tries to find the impacts of the money related emergency upon the financial reliance between and among the hubs of the European system, how they had the option to emerge from the downturn and what the future may hold for the nodes’ monetary association. Consequently this paper should now address the impacts of monetary reliance on the European system. For the writing explored monetary association has fluctuating degrees of significance. On account of Keohane and Nye, they characterize reliance as basically â€Å"mutual reliance, alluding to circumstances described by equal impacts among nations or among entertainers in various countries† (Keohane and Nye 8). It very well may be suggested from this that a meaning of financial association includes shared reliance monetarily meaning the trading of money, exchange, supplies, and even laborers among states and non-state entertainers. Keohane and 8 Nye however will in general concentration upon financial association as of auxiliary significance to political relationship. Keohane and Nye use financial reliance in Power and Interdependence to help in the clarification of global system change which happens as governments â€Å"permit monetary association to grow† because of household pressure for â€Å"greater monetary welfare† (Keohane and Nye 40). This system change is accordingly used to portray the eventual outcomes of political relationship and cooperation as political and military moves are made in competes for power post-war periods see an emotional development in state economies and

HUMANITY AND NATURE: THE PERIOD OF THE INDUSTRIAL REVOLUTION Essay

Humankind AND NATURE: THE PERIOD OF THE INDUSTRIAL REVOLUTION People and their response and reaction to world occasions has changed and developed since the beginning. The timeframe of the Industrial Revolution was no special case. Humansâ' reactions to the results of the Industrial Revolution precisely portrayed mankind and the phase of its development at that specific point ever. Humankind took a stand in opposition to the shameful acts they experienced because of the Industrial Revolution. In the end, social hypotheses developed, that obviously portrayed the intensity of the individuals to lead the world toward the path they wanted. The Industrial Revolution was additionally a period of advancement concerning the relationship of humankind with nature. Humankind demonstrated that it not, at this point expected to rely upon nature for its endurance. Prior to the primary Industrial Revolution, Englands economy depended on its house industry. The bungalow business comprised of laborers buying crude materials from vendors and utilizing these materials to create merchandise at their own home. The issue with this framework was that profitability was very low, which made costs higher. This caused an expansion in the productsã ­ costs, so merchandise got select to affluent residents. By the 1750ã ­s the Industrial Revolution had started. The Industrial Revolution was legitimately identified with the ascent of the production line system.(1) The motivating force to put resources into processing plants originated from the way that they were very effective, so there was an incredible potential for expanded benefit. Men, ladies, and youngsters were utilized to keep the machines running and the plant framework was set up to give the best proficiency of material and work, at the in case costly cost.(2) Factories gave the oppo... ...ch Engels, The Communist Manifesto in Perry M. Rogers Third Version, Aspects of Western Civilization: Problesm and Sources ever (Upper Seat River, NJ: Prentice Hall, 1997), 149. 16. Pope Leo XIII, Rerum Novarum (1891) in Perry M. Rogers Third Edition, Aspects of Western Civilization: Probles and Sources ever (Upper Saddle River, NJ: Prentice Hall, 1997), 158. Extra Source - Reeve, Robin. The Industrial Revolution 1750 - 1850. London: University of London Press LTD, 1971. This book is an incredible hotspot for the investigation of people and nature during the time of the Industrial Revolution. In this book the social effect of the Industrial Revolution is drawn nearer through an examination of the work power in 1851 and afterward leads into an appraisal of family life and expectations for everyday comforts during this questionable period. Humankind AND NATURE: THE PERIOD OF THE INDUSTRIAL REVOLUTION Essay Humankind AND NATURE: THE PERIOD OF THE INDUSTRIAL REVOLUTION People and their response and reaction to world occasions has changed and advanced from the beginning of time. The timeframe of the Industrial Revolution was no exemption. Humansâ' reactions to the results of the Industrial Revolution precisely portrayed mankind and the phase of its advancement at that specific point ever. Humankind stood up against the shameful acts they experienced because of the Industrial Revolution. In the long run, social speculations developed, that unmistakably portrayed the intensity of the individuals to lead the world toward the path they wanted. The Industrial Revolution was additionally a period of development concerning the relationship of humankind with nature. Mankind demonstrated that it not, at this point expected to rely upon nature for its endurance. Prior to the primary Industrial Revolution, Englands economy depended on its house industry. The bungalow business comprised of laborers buying crude materials from vendors and utilizing these materials to create merchandise at their own home. The issue with this framework was that efficiency was incredibly low, which made costs higher. This caused an expansion in the productsã ­ costs, so merchandise got selective to rich residents. By the 1750ã ­s the Industrial Revolution had started. The Industrial Revolution was straightforwardly identified with the ascent of the plant system.(1) The motivation to put resources into manufacturing plants originated from the way that they were amazingly proficient, so there was an extraordinary potential for expanded benefit. Men, ladies, and youngsters were utilized to keep the machines running and the manufacturing plant framework was set up to give the best proficiency of material and work, at the in case costly cost.(2) Factories gave the oppo... ...ch Engels, The Communist Manifesto in Perry M. Rogers Third Version, Aspects of Western Civilization: Problesm and Sources ever (Upper Seat River, NJ: Prentice Hall, 1997), 149. 16. Pope Leo XIII, Rerum Novarum (1891) in Perry M. Rogers Third Edition, Aspects of Western Civilization: Probles and Sources ever (Upper Saddle River, NJ: Prentice Hall, 1997), 158. Extra Source - Reeve, Robin. The Industrial Revolution 1750 - 1850. London: University of London Press LTD, 1971. This book is an incredible hotspot for the investigation of people and nature during the time of the Industrial Revolution. In this book the social effect of the Industrial Revolution is drawn nearer through an examination of the work power in 1851 and afterward leads into an appraisal of family life and expectations for everyday comforts during this disputable period.

Implementation of Students Feedback in Higher Learning Institutions, Term Paper

Implementation of Students' Feedback in Higher Learning Institutions, Term Paper Implementation of Students' Feedback in Higher Learning Institutions, Benefits and Challenges of Feedback â€" Term Paper Example > The paper “ Implementation of Students’ Feedback in Higher Learning Institutions, Benefits and Challenges of Feedback”   is a meaningful example of a   term paper on education. Many institutions of higher learning have adopted feedback processes to improve the quality of education and other important services they offer to their students. Research findings have shown that feedback systems contribute positive ideas to institutions and they open up opportunities for engagement between all stakeholders in a higher learning environment. However, some institutions still do not know the appropriate tools they can use to enhance their feedback systems. This discourages effective student engagement and participation in important activities that improve academically as well as other forms of performance in a higher learning institution. All stakeholders need to come up with appropriate techniques to ensure feedback systems attain the intended outcomes. University Students’ FeedbackFeedback is an important concept in higher learning because it helps university students engage with their tutors and fellow students on different topics they are studying. Students can use various tools to keep in touch with their tutors to gain more knowledge on different topics they are interested in learning. This exposes them to various problem-solving approaches that improve their analytical skills. An important issue to consider is that time limits and the inability to access tutors may make this learning approach difficult to implement. In some instances, students may not understand the importance of feedback in learning and this is likely to result in poor usage of this approach for learning purposes. This paper will examine the efficacy of using student feedback in learning and the benefits and challenges that are associated with its application in higher education. 2.0 BackgroundVarious educational experts have insisted that feedback brings about a lot of benefits to students in different learning environments. Student engagement is one of the most effective ways in which a student can attain his expectations in a particular learning environment. Feedback allows students to develop their skills because they are able to engage with their lecturers to understand their weaknesses and strengths (Kuh, 2009). Through feedback, students are able to learn important educational activities that are crucial to their development and this levels the playing field in higher learning. Additionally, students are able to collect and share resources through collaborations that have mutual benefits for all participants. This is important in helping educational institutions attain their goals in an effective way. For student engagement and feedback to gain the desired results, all participants need to be willing to invest their time and resources in activities t hat are potentially beneficial to their development. Graham et al. (2007) insist that virtual learning environments are becoming important features of higher learning. Distance learning offers opportunities for learners and their tutors to use various technological tools at their disposal to engage and share ideas that help them increase their knowledge in different courses they are learning. Many universities have incorporated technological concepts in their learning and teaching formats which encourage students to give feedback at their own convenience. Therefore, virtual learning environments encourage students to participate more in class discussions compared to traditional learning environments. Some students can express themselves better in a virtual learning environment because there are fewer interaction barriers compared to other learning formats. The ease in communication makes it possible for all participants to choose a suitable time to interact and exchange ideas to increase their knowledge on relevant topics related to their courses.

Molecular And Extinction Of Fear Memories Of The Brain...

C. APPROACH: Based on our preliminary data on lncRNA changes in specific regions of the brain associated with contextual fear, we hypothesize that specific lncRNAs mediate consolidation and extinction of fear memories. To test this hypothesis, the Puthanveettil and Stackman laboratories will bring together their strong expertise in genomics, bioinformatics, noncoding RNAs, genetics, behavioral models, non-coding RNAs, bioinformatics and functional, in vivo manipulations of novel molecular players. We will employ a research strategy that starts with an unbiased, genome-wide analysis of lncRNAs and funnel down to key players, at which point mechanisms of action will be identified. First, unbiased expression analysis of lncRNAs will be carried out with contextual fear conditioning following extinction of contextual fear memory. Second, we will then carry out in vivo manipulation of specific lncRNAs in specific regions of the brain to determine necessity of the expression of specific lnc RNAs in consolidation and extinction of fear memory. We anticipate that our studies will establish the functional importance of candidate lncRNAs in consolidation and extinction and provide novel insights into the novel molecular regulators and mechanisms underlying development of PTSDs. All of the genomics, bioinformatics and rodent behavior analyses will be carried out locally, at Scripps Florida and FAU, with confocal imaging experiments being performed across the street at the Max PlanckShow MoreRelatedStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesMaking 188 Summary and Implications for Managers 190 S A S A S A L L L Self-Assessment Library What Are My Gender Role Perceptions? 166 glOBalization! Chinese Time, North American Time 171 Myth or Science? Creative Decision Making Is a Right-Brain Activity 181 Self-Assessment Library Am I A Deliberate Decision Maker? 183 An Ethical Choice Whose Ethical Standards to Follow? 185 Self-Assessment Library How Creative Am I? 190 Point/Counterpoint Checklists Lead to Better Decisions 191 CONTENTS Read MoreDeveloping Management Skills404131 Words   |  1617 Pageswould do well to recall Will Rogers’ pithy observation: â€Å"Common sense ain t common.† In addition, the research reported in the Introduction suggests that, in many cases, managers’ â€Å"common sense† isn’t â€Å"good sense.† The premise of this book and associated course is that the key to effective management practice is practicing what effective managers—those with â€Å"good sense†Ã¢â‚¬â€do consistently. Reason #2: It is consistent with proven principles of effective teaching and learning. A seasoned university

Project management within organizations is important - Free Essay Example

Sample details Pages: 20 Words: 6109 Downloads: 1 Date added: 2017/06/26 Category Statistics Essay Did you like this example? ABSTRACT Which way to go? This is a question that organizations will ask themselves in a certain time, because organizations are faced with challenges of strategic direction. Some organizations are instigated by challenging opportunities, other organizations want to overcome significant threats. The business strategy can move an organization from where it is now, to where it needs to be in the future. Johnson et al (2009) states that the strategy of an organization is often likely to be complex, uncertain and mostly it affects operational decisions and requires an integrated approach. But the most typically and crucial components of strategy are change and innovation. Project management is essential for managing and reducing the inherent risk associated with change and innovation. Thats why many projects are the result of strategic decisions of organizations, because projects manage changes on an effectively and efficiently way. Changing organizations need projects for making change and for obtaining its business strategy and -objectives. Don’t waste time! Our writers will create an original "Project management within organizations is important" essay for you Create order Nowadays sustainability is a very hot (strategic) item for organizations. Organizations are integrating ideas of sustainability in their marketing, corporate communications, business strategy and in their actions. Centraal Boekhuis, a (leading) logistics service provider in stocking, storage, distribution and transportation of books, has also formulated a covering policy on sustainability for the strategy period 2009-2011 (Board of directors Centraal Boekhuis (2009)). Sustainability for Centraal Boekhuis means commitment to corporate environmental performances as well as sustainable performances on social and economic aspects. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to make project management sustainable, in order to make other projects contribute to the policy on sustainability too? In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Then the main research question will be answered: how will the business strategy influence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? The hypothesis is that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability. The actual research will be executed through a web survey among several organizations as well as a case study of Centraal Boekhuis, which contains in-depth interviews with about 10 representatives project employees from Centraal Boekhuis. The research will also contain the study of qualitative data, for exampl e the study of documentation and reports that are in stock within the company about strategy, project management and sustainability. 1. INTRODUCTION BACKGROUND 1.1 Introduction To understand project management within organizations it is important to understand projects. The Prince2 Foundation (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits. But why is there a need for projects within organizations? Organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Maylor (2005) stresses that Project management is essential for managing and reducing the inherent risks associated with change and innovation. Changing organizations need projects for making change. Recently Johnson et al. (2009) gives an interesting definition on business strategy. The definition describes that strategy contains the direction and scope of an organization over the long term, for achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations. Aforementioned definition displays that the fundamental principle of making changes of organizations can be the result of aiming towards targets that contributes to the fulfilment of the business strategy. In practice this means that organisational changes and the application of project management for realising those changes can thus be the result of the long term direction and scope of an organization. Simply said; project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. As mentioned above the management of projects within organization is among other things related to its business strategy, but how will the business strategy influences the selection and the execution of project management within organizations and how can project management thus contributes to the realization of the business strategy? For example, The board of directors of Centraal Boekhuis (2009) has formulated a covering policy on sustainability for the strategy period 2009-2011. Several projects on behalf of sustainability will be conducted as well as projects will be conducted on behalf of other strategic targets. But is it possible to realize more strategic focus, by linking all projects to the business strategy of an organization? This leads to the main research question of the thesis: how will the business strategy influence the selection and execution of project management within organizations, and how will this in consequence lead to sustainable project management? Another interesting question will be: if project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, will projects contribute to the realization of the business strategies as well as it subsequently will contributes to sustainability? 1.2 The organization; Centraal Boekhuis Centraal Boekhuis is a (leading) logistics service provider in stocking, storage, distribution and transportation of books. More than 500 publishers and over 1500 booksellers use the service facilities for distribution, transportation, information and administration. For publishers is Centraal Boekhuis the entry into the Dutch and Flemish (book) markets. For booksellers in the Netherlands and Flanders, Centraal Boekhuis is the provider of the assortment of Dutch-language books, general as well as educational or scientific books, and a selected range of foreign-language books (staff directory guide Centraal Boekhuis, 2007). Besides taking care of stocking, storage, distribution and transportation of books, Centraal Boekhuis also offers administrative or financial services. For publishers the company organizes complete stock and sales recording, invoicing and debt collection. Booksellers as well benefit from a broad range of information technology services. The majority of Centraal Boekhuis services are integrated in a single automated system (CB Online), so customers have access to the operational and management information they need, focused on their companys business processes. Upon request, Centraal Boekhuis will also arrange the storage, distribution and transport of office supplies, stationary and greeting cards. All logistic activities and processes are linked with the transport centres delivery network. The centres range of services includes processing special offers and returned goods, (temporary) storage, order picking and carrying out special mailing campaigns with value-added logistics. The Transport Centre of Centraal Boekhuis organizes transport from and to countries outside the Benelux. In England is a consolidation point bounded, where shipments from 1600 English publishers intended for Dutch bookshops are collected and forwarded to the Netherlands. This enables Centraal Boekhuis to offer customers attractive services. Shipments from Germany and America are transported along similar lines. History For over 135 years Centraal Boekhuis have been the logistic partner in the Dutch book trade. In 1871 the Vereeniging ter Bevordering van de Belangen des Boekhandels (VBBB) in Amsterdam lay the foundations for Het bestelhuis van de Nederlandsche Boekhandel, presently called Centraal Boekhuis. Publishers send their boxes with books to that warehouse of books, where the boxes were distributed across the Netherlands. Many years later, in 1926, the VBBB decided to found Centraal Boekhuis in Amsterdam. Well-established publishers were obliged to store their books in the central depot of Centraal Boekhuis in Amsterdam. From now on the book stores and publishers could order their books with Centraal Boekhuis from one central point in the Netherlands. In 1973, because lack of space, Centraal Boekhuis grounded their company in Culemborg, where the company nowadays is still grounded. In that same year is Het Bestelhuis and Centraal Boekhuis merged into one company: Centraal Boekhuis B.V (Intranet Centraal Boekhuis, 2008). Organization The daily management of Centraal Boekhuis is directed by the Senior Management Team (SMT). The lead direction of the 5 Senior Managers is directed by a Chief Executive Officer, namely Hans Willem Cortenraad. They have weekly meetings to discuss the company policy and how this policy is best directed to the line managers. Centraal Boekhuis in figures (2009) Full time employees: 579 Publishers: 500 Booksellers: 1500 Available Dutch titles: 80,000 Number of copies delivered per year: 60,000,000 Number of delivery addresses per day: 2500 Number of packages transported per year: 4,500,000 Number of pallets transported per year: 300,000 2. PROBLEM STATEMENT RESEARCH QUESTION According to Project Management Institute and Morris (2006) oorganizations often want efficiency, good financial results and success and they want it fast. It is for that matter that organizations generally focus on short-term results, such as immediate realizable financial goals. However, Centraal Boekhuis for example expects also from its employees to achieve results that corresponds to the overall long term objectives of the business strategy. This contradiction pointed me in the direction to ask myself if it is possible to operate more efficiently if the portfolio of projects is continuously linked to the business strategy of Centraal Boekhuis. My hypothesis subsequently is that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the business strategy. Nevertheless, the solution isnt that easy. For instance, organizations are nowadays more often integrating ideas of sustainability in business strategies. It is for that matter unavoidable that there will be projects related to sustainable strategy, namely environmental or social projects. However, will projects on behalf of other strategic objectives also be sustainable? Thats why I assume that when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of strategies as well as it subsequently will contributes to sustainability. [2] The main question and hypothesis will be clarified for a reasonable interpretation of the research construction and approach. In this research the relation between project management and the pursuing of the realization of business strategies will be looked at. Foresaid leads to the following research question: what is the impact of the business strategy on the selection and execution of project management within organizations, and will this possible influence in consequence lead to sustainable project management? The hypothesis is: when project management is constructed and selected in accordance with the business strategy, and more specifically linked with sustainable business strategy, projects will positively contribute to the realization of the business strategies as well as it will positively contributes to sustainability; the result subsequently is that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy. Why is it so important to link the project management of an organization to its business strategies, in order to make projects sustainable? As stated by Johnson et al (2009) it is ultimately the fulfilling of the business strategy to aim on the fulfilling of the expectations of the stakeholders. If an organization have stated sustainability within their business strategies, stakeholders are involved in monitoring if the strategy is achieved the objectives and if there is corrective action needed. This is called strategic control and it will keep an organization in track with its achievements on behalf of its strategy (and also sustainable strategy). According to foresaid it is plausible that it is important to state sustainability in the business strategy, for making sure that projects will meet the objectives and goals of sustainable strategy. 3. GOALS OBJECTIVES I will try to find out if a business strategy, specifically a sustainable business strategy, can positive influence the way on how projects will be selected and executed, as I expect it to be. I will test the hypothesis that the overall business strategy will be the input for the project portfolio planning and in turn, project success impacts the goals and objectives of the sustainable business strategy, to see if it is possible to make project management sustainable. If so, this offers an interesting new insight in sustainable project management, which could be the basis for more research. First it is important to study literature to get familiar with the several subjects of this thesis. The several subjects that will be described are project management, business strategy and of course overall sustainability. Next I will try to describe the multifarious relative contexts between the several subjects described in the literature, in order to make my hypotheses plausible. The most important objective of the literature review is to create an elementary basic assumption for further research. Furthermore the research methodologies that I will use are a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports. The case study research methodology will be used to get insights in how Centraal Boekhuis arranges its business strategy, especially how it is arranged towards its project management. Then it is important to look at how the sustainable policy of Centraal Boekhuis affects the daily operations as well as the sustainable policy affect its project management. For comparison and further research I will send a web survey to approximately 100 companies with sustainability stated in their business strategy. Hopefully this will give me insights in how other companies arrange their project management related to its business strategy and maybe they have certain methodologies to make project management sustainable, so I have some interesting data to work with. My research will focus on project management, business strategies, sustainability and sustainable project management in an attempt to find relative contexts to integrate business strategy and projects in order to facilitate development of sustainable project management. Overall I hope that the executed research will create a certain frame work for linking project management to the overall business strategy of an organization, in order to make project management sustainable. 4. LITERATURE REVIEW As mentioned earlier my research will focus on project management, business strategies, sustainability and sustainable project management. Therefore the theoretical background of my research will also be focused on foresaid topics. 4.1 Business Strategy The traditional literature about business strategy is often about the general definitions of business strategy, where organizations focus on where they want to be on the long term (mission and vision) and how this is achieved (goals and objectives) (Alblas Wijsman, 2001) in order to gain competitive advantages. The current literature about strategy describes more that strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations (Johnson et al., 2009). Aforementioned shows that the current literature on business strategies discusses the importance of the characteristic aspects change and configuration (Kloosterboer, 2005). The relative context between business strategy and changes is an important aspect that must be taken into account before I continue my research. According to Bryan Atkin and Adrian Brooks (2009), Change Management is the key towards innovation of organizations. In order to make progress and achieve greater efficiency and better value for money and to be more effective or competitive, organizations have to do things differently and have to make changes. Harvey Maylor (2003) characterizes project management as essential aspect for managing and reducing the inherent risks associated with change and innovation. Therefore changing organizations need projects for making change. 4.2 Project Management The Prince2 Foundation (2005) recognizes that organizations are continuously striving after agility and success by for example introducing new products and services or by improving business processes or activities. Many projects are the result of organizations that wants to manage such changes on an effectively and efficiently way. Furthermore Prince2 (2005) defines a project as a temporary organisation that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined recourses. In practice projects bring recourses, skills, technology and ideas together to achieve business objectives and deliver business benefits. According to the International Project Management Association (2006), professional project management is broken down into the following three competences (see also figure one): Technical competences for project management; behavioral competences of project personnel; and the contextual competences of projects programmes and portfolio. The technical competence covers the techniques of project management, for example the practice of Prince2. The behavioral competence represents the professional behavior of the project personal, like project management skills. The contextual competence is the linkage between the project and organizations involved. The vision on project management by IPMA in the International Competence Baceline presented in October 2006 will be critically looked at for my research. This project management approach will also be studied and discussed during the master program of the Master of Facilities Management and Real Estate. The eye of competence figures the integra tion of the elements of project management as seen trough the eyes of the project manager. So the essence of project management is to support the execution of an organizations strategy to deliver a considered necessary outcome (Clifford and Gray, 2002). The research of recent literature shows us that project management is nowadays recognized as one of the primary business processes (Atkin Brooks, 2009). It is for that matter that organisational changes and the application of project management for realising those changes must be linked to the overall business strategy of an organization, in order to accomplish the business goals and objectives. Simply said; project management can move an organization from where it is now, to where it needs to be in the future to meets its business strategy and -objectives. For this thesis I will mainly focus on the SWOT analysis, because this management and strategy tool is used by Centraal Boekhuis for defining its strategy. The SWOT analysis can be used as a strategy formulation tool. It helps organizations to identify its Strengts, Weaknesses, Opportunities and Threats (SWOT). The Strengths and Weaknesses represent the internal factors that create value or can destroy value. Opportunities and Threats are the external factors that can influence the organization value (Ahaus, 2005). 4.3 Business Strategies vs. Project Management According to Sabin Srivannaboon (2006), previous research on project management and its relation with business strategy mostly links the project management with business strategy through critical project selection, viewing it as part of the alignment process (For example Bard, Balachandra Kaufmann (1988); Cooper, Edgett Kleinschmidt (1998); Englund Graham (1999) etc). Also often displayed in previous research is project portfolio management. This is another concept suggested in the literature to ensure the strategic alignment of project management and business strategy and it is defined as a dynamic decision-making process, which an organization can update and revise its list of active projects (see for literature: Turner Simister (2000); Cooper, Edgett Kleinschmidt (1998) etc.). Current literature shows us more about the research that has been done on the alignment of project management with business strategies of organizations, for example research of Sabin Srivannaboon (2006) , Tony Grundy (2001) Peter Morris Ashley Jamison (2004) etc. 4.4 Sustainability sustainable project management On Wednesday the 4th of November, member of the House of Representatives Esmà © Wiegman talks about faith in Sustainability and vice versa, please note: in church! That sustainability has even penetrated the Christian church sais a lot. We are all confronted with it and action is expected of us. Sustainability is a hot item, that is no surprise. Looking at the quotes mentioned below you can conclude that there is no process in an organization that is not interfered with sustainability items. Managers are more and more beginning to consider the environment as an additional parameter on which they base their decisions. (North, 1997) That is what Klaus North wrote is his environmental business management introduction in 1997. And Carin Labuschagne wrote almost a decade later: Various driving forces originating from society, government employees and business partners are forcing companies to both incorporate sustainable development in their business practices as well as to align all internal operations and practices with the principles thereof. (Labuschagne, 2005). Sustainability, what does that really mean? Norwegian prime minister Gro Harlem Brundtland formulated it as followed; The development that meets the needs of the present without compromising the ability of future generations to meet their own needs. As Labuschagne already said, there is no process in an organization that is not interfered with aspects of sustainability. Project management is just one of these processes that cannot be ignored. That is also made clear in the APM sustainable outlooks, where is mentioned that they are considering a database with project and programme managers who have specialist knowledge, experience and expertise in sustainability issues generally or by specific sectors, locations or types of project. They also plead for the triple bottom line approach in every project. The triple bottom line approach includes environmental, social and economical sustainability (APM, sustainable outlooks). As organizations become more and more focused on environmental responsibilities, project managers cannot stay behind. (Zoyd Reed Luce) Where sustainability is grounded in almost every strategy of every large organization, this automatically is reflected in the projects of an organization. Project manager are forced to focus on sustainability these days, it becomes part of the project. 4.5 Theoretical Framework for aligning projects with strategy There are several articles expanding on the idea that there should be a certain focus on the corporate strategy when managing projects, for example the articles of Tony Grundy (2001) or Morris and Jamison (2004). Milosevic and Srivannaboon (2006) support this vision in their article and wrote an article which describes a theoretical framework for aligning project management with strategy. Milosevic and Srivannaboon have developed an empirically based theoretical framework that explains the impact of business strategy on project management and vice versa and discusses how mechanisms can be used to strengthen that alignment. As discussed earlier, strategy is about the importance of achieving advantage in a changing environment throughout configuration of resources and competences with the aim of fulfilling stakeholders expectations and defending it against competitive forces (Johnson et al., 2009). Milosevic and Srivannaboon have based their theoretical framework on the vision of Porter (1980) about Generic Business Strategies. Michael Porter states that to achieve a sustainable competitive advantage, an organization must chose a certain type of strategy. Porters generic strategies distinguishes three types of strategies, namely cost leadership, differentiation, and cost focus (see figure 3). Competitive advantage can only be achieved by choosing one of these strategies. If an organization chooses to pursue more than one generic strategy, it will perform being badly without competitive advantage and Porter refers to that as being stuck in the middle. Milosevic and Srivannaboon use cost leadership, differentiation, and best cost as the primary focus of their analysis. They also use Shenhars strategic project leadership framework which consist of project elements like project strategy, project organization, project process and tools metrics and culture. Differentiation is about organizations pursuing a differentiation strategy by offering products and services that are unique from competition in order to satisfy the desires of their customers. This differentiation allows the organization to charge a premium price (Porter, 1980). Cost Leadership is about organizations pursuing a cost leadership strategy to gain competitive advantage and increase market share by operate with lower costs than competition, for example tight cost controls e.g. efficient facilities (Porter, 1980). Best cost (also called focus niche) is about organizations creating a sustainable competitive advantage through combining cost leadership and differentiation. This can be realized by offering a unique product or service to a special market segment and seek to offer low cost products within a special market segment (fast time-to-market, superior product quality, etc.). According to Milosevic and Srivannaboon the competitive aspects of the business strategy drive the focus of the project management elements. They see a pattern in project management elements for the differentiation of business strategy. Their research indicates that organizations can align projects with business strategies into three levels, namely the strategic level, the tactical level, and the corrective emergent strategic feedback. The first level of this framework (typified as mediating process at the strategic level) is the first step of the alignment process. At level 1 organization should use their intended strategy and select projects into their portfolio to determine the right projects that would contribute to the organizations strategy. The second level (typified as mediating process at the project level) involves the further planning of project details to ensure that alignment with the project life-cycle phases (Shenhars project classification) is realized. Proper alignment of projects with strategy during the project life cycle can be classified as the planning process and the monitoring process. Managers should develop a project management plan that has a certain focus on the business strategy. The third level (mediating process at the emergent strategic feedback level) is a process which uses stages, or also called stage gates or milestone, for evaluating or reviewing the project status on time, cost, and performance. These project stages are points in the project life cycle where projects transition from one stage to another. These stages provide project teams the opportunity to realign the project to its business strategy. 5. RESEARCH DESIGN 5.1 Research methods Based on the literature of Baarde and Goede (2001), the research on behalf of this thesis is categorized in a preliminary research study, a literature review, a case study research and a web survey. For the execution of the case study research are various data (re)sources used, namely in-depth interviews and the study of business documentation and reports of Centraal Boekhuis. The preliminary research study has given multifarious insights in for example the company of the case study, but also insights about project management and the business strategy of the concerning organization. In the preliminary research study is a critically literature review completed and several managers of the human resource division have been interviewed for creating a basis for this research. The products of the preliminary research study are a defined approach of the case study research, a description of the company and a defined approach of the web-survey. The case study research can be categorized in descriptive- and exploratory research study methods (Sanders et al, 2009). The descriptive study of this case study is defined by the research of qualitative data, for example the study of business documentation and reports that are in stock within the company about project management, its business strategy and sustainability. The exploratory part of the research describes the research methods in depth interviews and a web survey. In order to test how organizations work with project management related to its (sustainable) business strategy, two steps will be carried out. First, on Tuesday March 6, I will send a web survey to approximately 15 companies with sustainability stated in their business strategy. This short questionnaire will offer me data on the way the concerning companies arranges their project management related to the business strategies, to test on how the companies makes their projects sustainable. In order to increase the number of responses and to raise the chances of the answering the questions themselves, I will keep the survey very short, and stress this in the attached e-mail. Second, I will arrange in-depth interviews with about ten representatives of project management employees of the project department of Centraal Boekhuis. In these interviews, I will attempt to learn more about the selection and execution of project management, related to the business strategy and of course elaborate on the questions of the Web Survey.[3] The project department of Centraal Boekhuis contains several layers of management and operations levels. Therefore I will interview numerous project managers as well as project members to make the outcome more reliable and suitable to analyze. The following employees of the project department will be interviewed: Egbert Guis (Sr. manager Project Management) Peter Coenen (Project manager) Jaco Wobma (Project Manager) Karel ter Burg (Facility Manager, participant in many projects) The final names and the exact number of interviews is of course dependant on the willingness of the companies to cooperate. The advantage of using the Web Survey is that I am not completely dependent on the in-depth interviews, as these might be difficult to arrange. Moreover, it provides me with data on the way other companies arrange their project management related to the business strategy, whereas the in-depth interviews will only offer me the views of a couple of representatives. Nevertheless, the in-depth interviews are a very important part of my research. In these interviews, I have the possibility to keep on asking, to get deep into the matter. Only in these interviews, the representatives can really explain how Centraal Boekhuis executes project management related to its business strategy and the relationship of sustainable strategy within project management. [4] 5.2 Analysis plan validation Besides relevant literature, the actual research will be based on a Web Survey and in-depth interviews. I will analyze the answers in the Web Survey on the basis of descriptive statistics. For each variable, I will present a frequency distribution. The results of the web survey will be compared with the current situation of Centraal Boekhuis, so it is possible to create applicable contributions and results for Centraal Boekhuis. Hopefully it is also possible, in accordance with the collected data, to create a certain frame work for linking project management to the overall business strategy, in order to make project management sustainable. The answers of the in-depth interviews will be analyzed as well. In this analysis, I will of course be looking for the answer to my research question: how will the business strategy on sustainability influence the selection and execution of project management within organizations? With face-to-face interviews, it is hard to predict what you will be analyzing exactly. However, by asking to the point questions, the interviews will be focused on the organization and its project management, which will certainly lead to answers which are relevant to my research whatever the exact answers are. 5.3 Constraints limitations The analysis plan for my statement on project management and its relation with the business strategy and sustainable business strategy is not entirely clear yet, because I do not know what kind of data I will have to work with. I will elaborate on my literature study, and I will analyze some interesting statements issued by respected managers, or other interesting statements relevant to the research. If available, I will analyze relevant data presented by organizations on sustainable policy and strategy gathered throughout the in depth interviews and the web survey. In the months June and July in depth interviews and web surveys will take place. I also will use any data related to project management, business strategy and sustainability in stock within Centraal Boekhuis, et cetera. If this data does not become available, I will look for other ways to make my statement plausible. I will analyze the results of research that has been done by others, in which the several subjects of my thesis will be attended to the matter. Moreover, I will also use research of others, such as the one on project management issued by Ashley Jamieson (2005). This paper reports on research that addressed the way how corporate strategy is developed and implemented via the management of portfolios, programs, and projects. It does so by detailing the key findings from four case studies, together with data from a survey of PMI members. The research of Sabin Srivannaboon (2006) on Linking and aligning project management with business strategies, where the research addresses three aspects of strategic management literature; A two way influence between project management and business strategy (the nature of project management/business strategy alignment). A process used for achieving the project management/business strategy alignment, and The degree to which a project is aligned with a business strategy (an alignment score). Ambidexter, a project management bureau in the Netherlands, has done research on strategy realization through using project management. They have constructed a so-called Strategy Realization Model (SRM). The research on behalf of the constructed model can also be interesting to look at. In the Master of Science program of the study Facility Management and Real Estate, the students have to make a paper describing a case study on how a selected organization applies concepts of sustainability in their projects and project management. Several of these case studies can be useful to study on behalf of my research. Which papers I will use is not entirely clear yet, because the papers arent finished when I write this proposal. 6. CONTRIBUTION VALUE It is essential that this research has a certain value for Centraal Boekhuis as well as it must have a certain contribution to the specialists fields of sustainable project management and Facility Management. Nevertheless the relevance of this research is not only interesting for Centraal Boekhuis. This research project is about project management, about business strategies, about sustainable project management. This research can be of importance for the future development of the project management profession and for the discussion to make project management sustainable, so can be seen as ultimately societal. But it can also be relevant beyond project management. It offers insights in the possible way on how business strategies can efficiently be executed throughout project management. This project can be the start of more research into unexplored fields. The relevance of this research on the field of Facility Management is limited. However, it is the responsibility of the Facility Management department to organize the companys sustainability. 7. REFERENCES Aaron J. Shenhar, Dragan Milosevic, Dov Dvir, Hans Thamhain, Linking Project Management to Business Strategy, Published by PMI Ashley Jamieson (2005), Moving from corporate strategy to project strategy, Publication: Project Management Journal, Date: Thursday, December 1 2005 Atkin, B. Brooks, A. (2009), Total Facilities Management, Published by Wiley Blackwell, (third edition) pp. 54-64 Baarda, dr. D.B., Goede, de dr. M.P.M., (2001), Basisboek Methoden en Technieken, Handleiding voor het opzetten en uitvoeren van onderzoek, Groningen: Wolters Noordhoff; p. 357, 360, 364 Barrett, P. Baldry, D. (2003), Facilities Management, towards best practices. Published by Blackwell publishing (second edition) pp. 221-225 Board of directors Centraal Boekhuis. (2009), Policy plan; Samen van goed naar geweldig, pp. 16-30 Centraal Boekhuis; https://cbnet.centraal.boekhuis.nl/default1.htm, Personeelsgids Centraal Boekhuis (consulted on oktober 2009) Centraal Boekhuis; https://cbnet.centraal.boekhuis.nl/default1.htm, Geschiedenis van het bedrijf (consulted on October 2009) Centraal Boekhuis; https://www.centraalboekhuis.nl/, Organizational structure (consulted on October 2009) Cramer, Jacqueline (2002), Ondernemen met hoofd en hart: duurzaam ondernemen: praktijkervaringen, Uitgeverij Van Gorcum Derek H T Walker (2004), A Balanced Scorecard approach to project management leadership, Publication: Project Management Journal, Date: Wednesday, December 1 2004 Dragan Z Milosevic Sabin Srivannaboon, A two-way influence between business strategy and project, management References and further reading may be available for this article. To view references and further reading you must purchase this article.Publication: Department of Engineering and Technology Management, Date: 22 May 2006. Dragan Z Milosevic, A theoretical framework for aligning project management with business strategies, Publication: Project Management Journal, Date: Tuesday, August 1 2006 International Project Management Association (2006), IPMA Competence Baseline version 3, pp. 9-16 Johnson, G. Scholes, K. and Whittington, R. (2009), Fundamentals of strategy, Published by Pearson Education Limited, (first edition) pp. 02-20, 276-281 Kloosterboer, P. (2005), Voor de verandering, over leidinggeven aan organisatieveranderingen, first edition, Published by Academic Service (Den Haag), 129 pages Kolk, Ans (2003), Het eind van maatschappelijk verantwoord ondernemen, of het begin?, Amsterdam University Press Labuschagne, Carin. (2005), Sustainable project life cycle management. Development of social criteria for decision making. University of Pretoria etd. Maas. G. and Pleunis. J.W. (2006) Facility Management, Strategie en bedrijfsvoering van de facilitaire organisatie, published by Kluwer (second edition), pp. 65-67 Maylor, H. (2005). Project Management, Published by Pearson Education Limited, (third edition) North, Klaus (1997), Environmental business management: an introduction, Editie: 2 204 pages. Office of Government Commerce, (2005), Managing successful project using Prince2, Published by TSO, (fourth edition) pp. 7-9 Peter Morris Ashley Jamison,Translating Corporate Strategy Info Project Strategy: Realizing Corporate Strategy Through Project Management, Publication: PM Network, Date: Saturday, October 1 2005 PricewaterhouseCoopers (2007), Transpirantiebenchmark 2007, maatschappelijke verslaglegging, ministerie van Economische Zaken, December 2007 Prince2 Foundation Office of Government Commerce. (2005). Managing successful project using Prince2 Saunders, M. Lewis, P. and Thornhill, A. (2009), Research Methods for business students, Published by Pearson Education, (fifth edition) pp. 10, 140, 145-147 Silvius, G. (2009), Its business but not as we know it, Utrecht University of Applied Sciences, published by Tuijtel, pp. 41-60 Tony Grundy (2001), Strategy Implementation Through Project Management, Published by Hawksmere Twynstra Gudde (2000) https://www.twynstragudde.nl/kennisbank (accessed on November 2009)

Domestic Violence Course Assignment Free Essays

Questions: Answer the following questions. Name three consequences for women victimized by male partner violence. ? Describe the following three theories: traumatic bonding, Stockholm syndrome, ND attachment. We will write a custom essay sample on Domestic Violence Course Assignment or any similar topic only for you Order Now How do these theories explain a victim’s entrapment in the relationship? Why can’t battered women count on the criminal Justice system to protect them from an abusive male partner? Chapter 9 Review – Abusive Heterosexual Partners: Primarily Men Discuss at least three different types of definitions of partner violence. Discuss blame. Evaluate how it affects battered women and partner violent men. Discuss what is known about female partner abuse offenders. Compare and contrast differences with male offenders. Assignment – Due: Wednesday, April 4, 2012 Discuss the meaning and importance of practice, policy and prevention issues. Evaluate agency services versus individual counseling services. What problems do agencies appear to have? Discuss cultural competence and why is it needed in practice, policy and prevention. Discuss the controversy over treatment of male abusers. What is your opinion? Assignment – Due: Wednesday, April 1 1, 2012 Chapter 4 Review – Child Physical Abuse Should corporal punishment be outlawed? Is it effective? Why or why not? List five general categories of the effects of CPA on children. Describe a prototypical adult who abuses children. Assignment #5 – Due: Wednesday, April 25, 2012 Chapter 12 Review – Abuse of Elderly and Disabled Persons How does elder abuse compare with abuse of younger adults? What is elder self- neglect? What sorts of individuals are most likely to abuse elders? What are some of the forms of abusing disabled persons that appear to be unique? What elder abuse problems and responses to abuse occur in nursing homes? How to cite Domestic Violence Course Assignment, Papers

Tacit collusion Essay Example

Tacit collusion Essay In any oligopoly structure there is a conflict between individual incentives and joint incentives. In Bertrand competition, for example, each firms individual incentive is to capture the whole market by setting lower price than its rivals. That leads to pricing at marginal cost and zero profits earned by all the firms. This equilibrium is not desirable by any of the firms their joint incentive is to earn positive profits by fixing price at some other, higher than marginal cost level. Because of this Prisoners Dilemma nature of any oligopoly structure, in equilibrium firms earn lower total profits than they could if they acted as a single monopolist. By behaving as a monopoly they could maximise total profits. It is therefore natural for the firms to establish agreements between them to enforce alternative solution such that all firms are better off than in equilibrium (Luis and Cabral (2000), p127). This type of behaviour is referred to as collusion. Collusion is an agreement among a group of firms designed to limit competition among the participants. If all firms follow the agreement, buyers will face higher prices, giving the firms profits above the normal competitive level. From the welfare point of view collusion is not desirable. The optimal outcome that maximises total welfare is for the firms to price at marginal cost. Collusion allows companies to deviate from pricing at marginal cost and to transfer some consumer surplus into producer surplus. As a side effect dead weight loss occurs that reduces total surplus. In fact, this is the main consideration of regulators and policymakers against collusion in whole and price fixing in particular (Luis and Cabral (2000), p144). We will write a custom essay sample on Tacit collusion specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Tacit collusion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Tacit collusion specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In this work we shall consider different forms of collusion, which can be implemented by firms in practice. Each of the forms of collusion considered in this work can set the objective to control any aspect of production: buying or selling price, quantity supplied, advertisement expenditure, level of quality, each firms territory or the level of competition with the firms that are out of the agreement. Starting with the strongest, the most powerful and most stable ones, each form will be discussed in connection with legal remedies restricting its use. Particularly, an assumption will be tested that more powerful and stable forms of collusion are more difficult to enforce and use in practice because of greater antitrust restrictions. Forms of collusion There are three main forms that collusion between firms can take: cartels, secret agreements, and tacit collusion. Each type will be discussed here one by one. Cartels Oxford dictionary provides the following definition of a cartel: a national or international association of independent enterprises formed to create a monopoly in a given industry1 There are many varieties of cartels. Full cartel is behaving very much like monopoly, controlling all aspects price, output, investment, product mix and profits. Less complete cartel, often called the marketing cartel controls all its members sales and revenues (Shepherd (1979), p307). The most well known example of cartel is the Organisation of Petroleum Exporting Countries (OPEC). It is an international organisation consisting mainly of oil-rich Middle East Arab countries2. It has a significant power in determining the world oil prices by controlling its members joint oil production. It first achieved success in 1973 by raising the world oil price from $3 to $11, and then to about $30 in 1979. The Diamond Cartel, DeBeers, is another well-known example. It has a significant power of control over world diamond industry. Now more than 80% of the worlds diamonds are processed through DeBeerss Central Selling Organization. In 1981, it flooded the diamond market to punish one of its members for defecting from the cartel and managed to reduce the price form $3 to $1.80 3 Among all types of collusion cartel is the strongest and most stable one. It is the most powerful in terms of determining the price or any other aspect a cartel controls. For this reason cartels are largely illegal (in Europe by Article 85 of the Treaty of Rome; by Sherman Act in the United States). So, if firms want to communicate directly, they may do so secretly. Secret agreements Secret agreements are illegal also, but these agreements are less obvious than cartels. It takes a great deal of effort to detect if a price change, for example is a result of agreement between companies or it is just due to the demand change. Secret agreements are easier to implement than to form a cartel. For this reason, firms have an incentive to make secret agreements to fix the price that would maximise their joint profits or to control any other aspect like quantity, advertisement etc. One recent example of secret agreements is a case of credit card firms colluding to compete against debit card rivals. Visa and MasterCard actively discouraged the use of rival debit cards to push the use of their own more expensive versions, raising costs for merchants and customers (see Appendix 1). If this anticompetitive behaviour is proved, firms will be heavily penalised. Another recent example of illegal secret agreement is commission fees fixing by two well-known auction houses. A fine of à ¯Ã‚ ¿Ã‚ ½20.4 million has been imposed by The European Commission on the auction house Sothebys for colluding with its rival Christies. The EU case against the auction houses follows action in the United States where Sothebys was sentenced to pay $45 million. Christies escaped both EU and US fines because it provided evidence to European and American investigators that enabled them to prove the existence of the agreement.4 Secret agreements are very risky in the sense that once the existence of such agreements is detected and proved, it may result in fines or jail time. In real world, a lot of firms seeking to collude do not want to bear such a risk. Therefore, they have to find some other ways to communicate with each other.