Strategic Analysis (SWOT, Porter and PESTEL) of Goldman Sachs The WritePass Journal

Strategic Analysis (SWOT, Porter and PESTEL) of Goldman Sachs Introduction Strategic Analysis (SWOT, Porter and PESTEL) of Goldman Sachs IntroductionBackgroundPolitical Factors.Economic Factors.Sociocultural Factors.Technological Factors.ReferenceRelated Introduction Background Goldman Sachs is a global investment banking, securities and investments managements   firm that provide financial services to a substantial and diversified client base, includes corporations, financial institutions, governments and high-net worth individuals. Goldman Sachs was founded in 1869 by Marcus Goldman who was a German immigrant to the United State of America (USA). Mr Goldman started his business as a Major issue of short-term loan (Commercial paper) to entrepreneurs in the USA. Goldman Sachs joined the New York Stock Exchange in 1896 and then in 1986 the firm joined London and Tokyo stock exchanges. Goldman Sachs headquarters are located in New York and has offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centres around the world. Goldman Sachs has around 35,700 employees, and the firm generated a total annual revenue of   $39.161 billion in 2010.The firm is   heavily   involved in recruiting top graduates from leading business schools around the world and most of its ex-employers are holding top management jobs in governments around the World. Goldman Sachs Group in a nutshell   INDUSTRY BankingFinancial Services    REVENUE(2010) $39.161 billion FOUNDED 1869 OPERATING INCOME(2010) $12.892 billion FOUNDER Marcus Goldman NET INCOME(2010) $8.354 billion HEADQUARTERS New York City TOTAL ASSETS(2010) $911.000 billion EMPLOYEES(2010) 35,700 TOTAL EQUITY(2010) $74.257 billion Transition of the orientations 1.)   Pre-2007 Sales Orientation Goldman Sachs is a service company which was more focused on Investment Banking activities, the firm had a huge reputation of being a risk taking company and not a customer focused company. The firms senior partner Guy Levy was once credited with a companys philosophy   of being long- term greedy Endlich, L. (1999)which simply meaning that the Goldman Sachs was more interested and focused in making money   over the long term and any trading losses in the short term were never to be worried about. At Goldman Sachs customer were never been put into the centre of the companys strategy, the firm was more focused on sales and profits. Jobber explained that   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A sales-orientated company has little focus on customer needs and wants, and does not try hard to create products or services that are suitable for their customers needs.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Jobber, D. (2007) This sales strategy had put Goldman Sachs into the highlight of the media during 2007, and the firm has been heavily criticised with many financial issues, the major issue being the America’s sub-prime mortgage crisis. Despite the mortgage crisis Goldman Sachs was able to profit from the collapse in subprime mortgage bonds by short-selling subprime mortgage -backed securities. The firm initially avoided large subprime write downs and achieved a net profit due to significant losses on non-prime securitised loans being offset by gains on short mortgage positions.(The telegraph) Its sizeable profits made during the initial subprime mortgage crisis led the New York Time to proclaim that Goldman Sachs is without peer in the world of finance. As the crisis was begun to unravel the firms image and   reputation was badly damaged to the extent that an article in The Telegraph Newspaper quoting   Rolling Stone magazine   compares  Ã‚   Goldman Sachs with nothing else but   a   Vampire squid wrapped around the face of humanity relentlessly jamming its blood funnel into anything that smells like money(The telegra 2.) Current Marketing Orientation Goldman Sachs realized that its sales approach didnt do any good for the company and there is a crucial need to focus into a marketing orientation strategy. As one of the firms partners was quoted in the Telegraph saying that: ‘Only looking back could we see the real risk, the risk of arrogance. We didn’t see it then, but it was there and it was growing. The firm was at the top. We had always been the best   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   – always the top students and the best athletes and the class leaders. And now we were the best firm – in our self-appraisal. But that was the first step towards arrogance.’ (Wilson, H.(2010) The bank that thought it rules the world. The Daily Telegraph London. 19 April, pp 19) According to Jobber, D, (2007) Marketing orientated companies are best described as those which focus on customer needs and do recognize when change is needed. Goldman Sachs is currently trying hard to clean up its image and is more focused into marketing, society and ethical issues. The firm is more involved into helping and giving back to the society that it has once been involved on damaging. The firm has understood the importance of consumer right issues and it has been stressed by Jobber that:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Consumer has the right to expect the product to be safe, for its performance to be as   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   expected and for communication of the product to be truthful and not misleading.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Jobber, D. (2007) Jobbers words above can be linked into the quote from Goldman Sachs website saying that:   Goldman Sachs as a global financial institution has understood the need to protect,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   preserve and promote human right around the world and has accepted that it is    their responsibility to bring positive impact on economic, social and environmental   Ã‚  Ã‚   challenges that are facing society today.( Goldman Sachs web site). Goldman Sachs has 14 clear operating business principles that outlined on the companys website with a slogan saying Progress is everyones business .But it has given more emphasise to its very first business principle as being the value to their client, ’our client interest always comes first, our experience shows that if we serve our clients   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   well, our own success will follow’   {After the diagram the above looked odd, so we can replace the above highlighted part with the one below, } Goldman Sachs has 14 operating business principles listed on their website. We have handpicked few of them which we think will play a very important role in their current marketing orientation. {Feel free to add/edit any principle which you think is more relevant}    Other 13th Goldman Sachs Business principles   are as follow; Our assets are our people, capital and reputation Our goal is to provide superior returns to our shareholders We take great pride in the professional quality of our work We stress creativity and imagination in everything we do we make an unusual effort to identify and recruit the very best person for the job we offer our people th opportunity to move ahead more rapidly than is possible at most other places we stress teamwork in everything we do. The dedication of our people We consider our size an asset that we try hard to preserve We constantly strive to anticipate the rapidly changing needs of our clients and to develop new service to meet those needs We regularly receive confidential information as part of our normal client relationships Our business is highly competitive, and we   aggressively seek to expand our client relationships integrity and honesty are at the heart of our business. {References for these and a better way of presenting them} NEWSPAPER   (Wilson, H.(2010) The bank that thought it rules the world. The Daily Telegraph London. 19 April, pp 19). Arlidge, J.(2009) Im doing Gods work meet Mr Goldman Sachs. The Sunday Times on line. 8 November, Visited on 12 March 2011. BOOKS Jobber D.(2007) Principles and Practice of Marketing. Mc Graw Hill. 5th edition. Endlich, L (1999) Goldman Sachs- The culture of success. Little brown Company. Section 2 – Audit of the Organization Defining Marketing Audit   In words of David Jobber- ‘ The marketing audit is a systematic examination of a business’s marketing environment , objectives, strategies   and activities with a view to identifying key strategic issues, problem areas and opportunities.’ The Aim of Marketing Audit It will provide us with an in depth view of existing marketing practices used by Goldman Sachs. It can be used as a baseline for performance measurements to maximize positive external perception. As the customers’ preferences and requirement keep on changing and so are the marketing trends, it will provide us an interim report card on the company’s performance level. It will highlight the key problem areas like Weaknesses and Threats for Goldman Sachs and can help invent strategies to overcome them by using their strengths and possible opportunities. It will help to assess the importance of macroeconomic factors by analyzing the extent of their impact on Goldman Sachs’s operating scenario. Understanding Marketing Environment for Goldman Sachs at Micro and Macro Levels It is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization’s marketing environment is made up of: Microenvironment ‘It is the immediate environment that affects its capability to operate efficiently in its chosen markets’. Jobbers   Following are the main components of Goldman Sachs Microenvironment The Companies Internal Environment Goldman Sachs is extremely selective when it comes to the resources. It is a well known fact they employ the Best Brains in the Industry and their resources are claimed to be one of the main assets that the Company has, the other 2 being capital and reputation. Suppliers/Vendors Goldman Sachs believes that by broadening its supplier base it will gain access to new ideas, increase competition and receive better value for money. To qualify as a vendor to Goldman Sachs, prospective suppliers are evaluated on several criteria, including: quality products and services excellent customer service   competitive pricing   ability to assist us in meeting our business goals environmental and social impact. realising-potential.org/stakeholder-factbox/suppliers/ Customers Goldman Sachs customers include high-net-worth individuals, Corporations, Financial Institutions, Institutional Investment Consultants, Insurance Companies Multi-Employer/Union Benefit Plans, Not-for-Profit Institutions, Public Pension Funds. Competitors The major direct market competitors for Goldman Sachs include JPMorgan Chase Co, Merrill Lynch Co. and Morgan Stanley whereas; Bank of America Securities LLC, Deutsche Bank AG etc also compete with Goldman Sachs in terms of Investment Banking. The macro-environment Macro-environment It comprises of a number of broader forces that affect not only Goldman Sachs but other microeconomic factors corresponding to the firm. The components are Demographic forces/ Social/Cultural Forces Consideration of demographic changes is a commendable exhibition of business farsightedness by Goldman Sachs. A lot of vigilance and effort has been incorporated to enumerate the consequences of possible changes regarding to the population like the purchasing drifts, spending patterns, inclination towards certain specific classes of financial services. Also, Goldman Sachs strives to leverage what it calls the most underutilized asset for any country –women. â€Å"Womenomics† demonstrates how a country can unleash its economic potential – and increase its long-term growth and prosperity – by employing more women and narrowing the employment gap between men and women. http://www2.goldmansachs.com/ideas/demographic-change/demographic-dynamics-doc.pdf http://www2.goldmansachs.com/ideas/demographic-change/womenomics-2011/index.html Economic Forces These factors would include changes in interest rates, unemployment, inflation overall economic growth and exchange rates. All these factors have a significant impact on the performance of Goldman Sachs. oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm Political Forces Goldman Sachs’s close connection with the US government has been an issue of economists’ concern since the Wall Street Subprime Incidence of 2007. A Lot of employees of Goldman Sachs were appointed by the US Government at powerful posts of Treasury and Federal Reserve Players. Macro-environment (cont.) Technological Forces The technology infrastructure for Goldman Sachs is indeed sound having in view its impact on the cost and the quality of the services offered to the clients. ‘Our technology footprint is primarily driven by business growth and regulatory obligations’. Goldman Sachs is bound to use the latest technology like computers with fast microprocessors to meet the computational requirements and to provide internet based services to their clients. However, compliance of maintaining standard technology footprints is one of the major responsibilities that cannot be over ruled. http://www2.goldmansachs.com/citizenship/environment/env-progress-2009.pdf Natural Forces Global Warming, Climate Changes, renewable energy issues, carbon footprint and attention to clean energy are some of the natural forces that require attention from the environmental point of view. Goldman Sachs’ Environmental Policy Framework embodies their commitment to finding effective, market-based solutions to address climate change, ecosystem degradation and other critical environmental issues, and to creating new business opportunities that benefit the environment. The above diagram shows the carbon emissions from Goldman Sachs hub offices, central offices and data centers. The firm has tried to maintain its carbon emissions in the central and hub offices. The data centers show an increased carbon emission every year, the same is accounted for elevated computational requirements and internet services for the clients. http://www2.goldmansachs.com/citizenship/environment/env-progress-2009.pdf SWOT ANALYSIS GOLDMAN SACHS   ‘A critical set of steps in a planning exercise is to perform internal assessments (including an analysis of performance against previous plan) and external assessments (including an analysis of the operating environment) that result in the identification of strengths, weaknesses, opportunities.’ www.unisa.edu.au/pas/qap/planning/glossary.asp SWOT MATRIX FOR GOLDMAN SACHS   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Environmental Factors Own/Internal Factors External Opportunities   International Expansion- Emerging Markets- Cross Selling Opportunities Industry Consolidation Reduced Competition- rivals bankruptcy    External Threats Credit Market Crisis- High attrition Rates- Mortgage Issues Increase in Interest Rates Government Intervention Own Strengths -Global Market Leader, Brand Establishment-International Reach-Best Brains resource infrastructure -Innovative Work Culture -Government Support SO Strategies-International Expansion in emerging markets.-Using Government Support for Industry Consolidation SE Strategies Risk/Crisis Management Measures using the resource intellect-Security Planning against Subprime Mortgage. Own Weaknesses Concentrated in Few Key Products-High Attrition Rates-Blotted Public Image (Subprime Mortgage Fraud) Low perception of Social Responsibility OW Strategies  -Diversification of the products-Education, social investments, community involvement TW Strategies  -Increased job security for resources-Using Government support to survive the Subprime Mortgage Crisis. Strengths Global Market Leader Brand Name Being in a leading position and the brand value that it has earned in the market have brought many benefits to Goldman Sachs. Higher margins, because it charges premium prices for goods since customers perceive a higher standard of quality from companies with strong brands. -Ability to raise debt at lower cost. -Because of its established Brand Image, Goldman Sachs has a more stable business than its competitors and is more likely to acquire other businesses as opportunities. International Reach The international reach of Goldman Sachs has a big advantage over rivals especially when its clients conduct a lot of business in different countries. For instance, majority of business travellers need to access their money in another country. They prefer a bank/investment firm that has branches in that country, rather than working with a third party, which will increase they fees and lower their productivity.   Global access of Goldman Sachs means that a consumer from one country can feel comfortable banking at any of its branch across the world. Non global companies cant match these advantages; therefore, Goldman Sachs has strong advantages over rivals. Best Brains and strong resource infrastructure According to Warren Buffett, ‘Goldman has the best brains in the business.’ This statement implies that they have a better risk management, quicker and more effective action on the opportunities received and a strong market position. The recent most evidence is that even ‘Subprime Mortgage Meltdown’ case with the SEC and the new financial regulation reform has failed to dent these assets. In addition to having the best people, Goldman Sachs has a clear, well distributed corporate structure. Divisions Finance Global Compliance Global Investment Research Human Capital Management Internal Audit Investment Banking Investment Management Legal Merchant Banking/Private Equity Operations Securities Services Technology Advisory Services Insurance Strategy Global Portfolio Solutions Customized Beta Strategies Innovative Culture Goldman Sachs strives to maintain an innovative culture which effects production of new and inventive products. An innovative culture has helped in boosting Goldman Sachs’ brand value, because consumers start associating its brand name with the latest products. These products, besides providing the brand boost, have helped Goldman Sachs to stay competitive in the ever expanding markets. Possessing the best quality product in one segment directly helps Goldman Sachs to gain a better market share in that segment. Weaknesses Concentrated in Few Key Products/key clients The fact that Goldman Sachs lacks diversification is considerably risky, because if one or more of its main products collapses, then the business could face serious issues or maybe even bankruptcy. Also, loss of one client who is using multiple services of Goldman Sachs would eventually lead to loss of a considerable amount of business to it. Low perception of Social Responsibility/ Blotted Public Image As per the ranking released by Fortune, Goldman Sachs stands 7th in the Social Responsibility which depicts the fact that it undermines social cause to a large extent when compared to other aspects of business like People Management and Financial Soundness where it ranks 1st and second respectively. http://money.cnn.com/magazines/fortune/mostadmired/2011/snapshots/10777.html The Subprime Mortgage Incidence/ SEC lawsuit against Goldman Sachs April 16, 2010, the SEC filed a lawsuit against Goldman Sachs for selling an asset to banks whose returns depended on a group of home mortgages being repaid by home loan borrowers. The alleged fraud foundation laid in the fact that Goldman Sachs did not inform the banks that those specific subprime mortgages were recommended by another Goldman Sachs customer. And that same customer planned to bet against the same mortgages ever being paid by the home loan borrowers. The public stance for this fraud was -Hosting a poker game for your friends knowing the dealer was bringing stacked cards and not at least informing your friends of the dealer’s intention. Opportunities International Expansion Strong international presence and expansion should increase growth and profits. Expansion over abroad brings synergies to a company, because they would have a larger customer base. Expansion leads to more financial stability, because while one country may suffer economically, other countries may not have the same issues. Additionally, expansion could help a company discover synergies in marketing expenses and new ideas through experimentation that may work well in one market. Emerging Markets Demand from emerging markets is helping growth and margins. Emerging markets create new opportunities to expand products from the developed world. Paper products, computer services and other industries will all benefit as emerging countries increase demand for industrial and agricultural products. Cross Selling Opportunities Goldman Sachs has many related business lines; they have the opportunity to cross sell to consumers who arrive for one specific need, but leave with many different products and services. Cross selling is particularly lucrative, because it will allow Goldman Sachs to earn extra money from consumers without having to specifically target them with advertising or other promotional material. Explanation Consolidating Industry Goldman Sachs provides advice on a diverse range of strategic transactions, including mergers, sell-side and buy-side advisories, leveraged buy-outs, joint ventures, strategic alliances, anti-raid and raid defenses, fairness opinions and spin-offs, split-offs, divestitures and other restructurings. Goldman Sachs has been offering its merger advisory services since 1997. Some of its major instances are listed below -: Altria,  on its spin-off of  Philip Morris International  ($113bn), 2008 Pfizer, on its acquisition of Wyeth  ($64bn), 2009 Schering-Plough, on its sale to  Merck Co.  ($46bn), 2009 http://www2.goldmansachs.com/services/advising/mergers-and-acquisitions/products-and-expertise.html Reduced Competition after Wall Street Collapse Reduced competition from an economic slowdown and competitor bankruptcies should increase the profit margins of all firm who avoid bankruptcy. Less competition means higher prices and more money for remaining competitors. Include any journal reference for this incidence Threats Credit Market Crisis ‘Goldman Sachs had slumped into the red and its effort to defy the credit crunch had been futile. It revealed a fourth-quarter loss of $2.12bn ( £1.38bn) today. It still achieved a $2.32bn profit for the full year to November, but this was sharply lower than last years $11.6bn.’ guardian.co.uk/business/2008/dec/16/goldman-sachs-loss The credit market crisis increases the cost of borrowing for financial firms. This increasing cost lowers margins and decreases the free cash flow to shareholders. As free cash flow rises, so does the value of the firm. If costs are high, then loan growth slows down and further weakens cash flow for the business. http://www2.goldmansachs.com/ideas/global-economic-outlook/perspectives-on-market-conditions.pdf Risk of High Attrition Rates High attrition rates can be a problem, especially if Goldman Sachs’ best talent is leaving for other opportunities. Employee attrition means a company must go through the expense of hiring new employees, training those employees, and finding the right niche for them in an organization. When these employees move to other firms, they take their knowledge and expertise with them. Mortgage Issues Though Goldman Sachs managed to escape the Subprime Mortgage Crisis,   still the potential threat of losses on outstanding mortgage obligations could force bankruptcy and a government takeover. This means that the existing equity investments in the Goldman Sachs will stand worthless. Mortgage loans are not worth what was paid for them, but their value remains uncertain in the market. Apart from increasing uncertainty risk for the company, they also increase the discount rate applied to future cash flow. Thus the net value of the stock is reduced. Sharp Rise in Interest Rates A sharp rise in interest rates (most likely to stop inflation) seriously damages the profit margins of businesses like Goldman Sachs that rely on raising money to finance their expenses. A rise in rates would most likely hurt the financial sector, which profits from borrowing money at low rates and lending it out at higher rates. PEST ANALYSIS PEST analysis stands for ‘Political, Economic, Social, and Technological analysis’ and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is a part of the external analysis when conducting a strategic analysis or doing market research, and gives an overview of the different macro environmental factors that a company has to take into consideration Political Factors. The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. US Government and Goldman Sachs – 1-  Ã‚  Ã‚  Ã‚  Ã‚   There can be no doubt that Goldman owes its uncanny success as much to its political connections as to its financial acumen. As long as that remains the case, Goldman will doubtless remain on top, to the perplexity of those who fail to grasp the significance of the Goldman Sachs-D.C. pipeline. Only by restoring the wall of separation between Wall Street and Washington, forcing investment firms like Goldman Sachs to stand or fall on their own merits, can America’s financial sector shake off the taint of political cronyism that men like Sidney Weinberg were happy to encourage. thenewamerican.com/index.php/economy/sectors-mainmenu-46/4025-the-government-and-goldman-sachs 2-  Ã‚  Ã‚  Ã‚  Ã‚   As the New York Times explained last October, the presence of Goldman Sachs alumni in virtually all of the top government financial posts is so great that their team is dubbed Government Sachs. The New York Times pointed out that Goldman alums include: Former treasury secretary Hank Paulson Paulsons bailout chief Neel Kashkari Interim Treasury investment officer Reuben Jeffrey Key Treasury players Dan Jester, Steve Shafran, Edward C. Forst, and Robert K. Steel Key New York Federal Reserve players Stephen Friedman (head of the New York Fed board of governors, who sat on Goldmans board and owned a substantial stake in Goldman while he was making official decisions) Head of the New York Feds unit that buys and sells government securities William C. Dudley and E. Gerald Corrigan (charged with convening a group to analyze risk on Wall Street) http://georgewashington2.blogspot.com/2009/04/does-goldman-sachs-rule-world.html Economic Factors. For a firm like Goldman Sachs which focuses on international marketing, the marketers need to consider the state of a trading economy both in the short and long-terms. 1.) Implications of Inflation in US and UK -The investors belief in US is that unprecedented fiscal and monetary stimulus can lead to US Dollar depreciation and higher inflation. In the United Kingdom, the investors fear that the bank of England’s reluctance to raise the interest rates might act as a catalyst for inflation. Inflation is the greatest concern when we talk about investments like pension funds and related endowments. Current Goldman Sachs strategy for these countries- Inflation Linked bonds Inflation linked bonds, also termed as ‘linkers’ are high quality securities issues mostly by governments that provide income and total return which adjusts itself to keep up with the inflation rates. Inflation-linked bonds, such as US Treasury Inflation-Protected Securities (TIPS) and UK inflation-linked Gilts, can help hedge this risk because their principal is adjusted to reflect changes in inflation. Following is an illustration of how inflation linked bonds will provide the return, taking principal amount of 100 million Dollars. http://www2.goldmansachs.com/gsam/docs/instgeneral/general_materials/primer/reference_guide_to_inflation-linked_bonds.pdf Implications for unemployment   The impact of unemployment on the performance of Goldman Sachs can be understood with a simple example that if any firm is running at its full capacity, there is more pricing power for business. If there are no unemployed workers, Goldman Sachs will have to pay more to hire a worker away from someone else, often called ‘Poaching’. So far, Goldman Sachs has been quite accurate in its predictions regarding the unemployment scenario. Below are the illustrations. http://www2.goldmansachs.com/gsam/docs/fundsgeneral/general_education/economic_and_market_perspectives/wp_economic_outlook.pdf 2.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Long-term prospects for the economy Gross Domestic Product (GDP) per capita    The Goldman Sachs Commerce Department timely reviews the current economic environment, tailwinds that could support the recovery and potential risks for the economy. Then it provides a summary of our projections for the economy in the coming year. Sociocultural Factors. The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: Investing in a clean energy future Each of our businesses has an important role to play in furthering market-based solutions to meet the environmental and societal challenges we face. To encourage the responsible flow of capital, have a positive impact on the communities where our clients and we do business, and drive attractive returns for our shareholders, we look for opportunities to invest in and finance transactions that have social and environmental benefits. We take the same disciplined approach to these investments and market opportunities as we do with our traditional investments and markets: all must meet the interests of our clients and generate long-term value for our shareholders. The guidance provided by our Framework helps us to evaluate market opportunities across our business activities and areas. Since the inception of the Framework in November 2005, we have invested nearly $3 billion in clean energy, providing critical funding that these emerging industries need to ramp up and achieve the economies of scale that will help them become cost-competitive. In 2009, we: Significantly expanded our investments in solar energy with the acquisition of Sunray Energy, Inc., through our subsidiary Cogentrix Energy. Sunray owns and operates Solar Energy Generation Systems I and II (SEGS I II), the first two utility scale solar trough plants in the world, which have a capacity of approximately 43 megawatts and deliver electricity to Southern California Edison. We are in the process of implementing a capital investment program to retrofit and upgrade the delivery capability that will enhance the efficiency and reliability of Sunray’s solar installations. Signed a power purchase agreement to construct and operate a wind project in Puerto Rico. The power plant will have a capacity of 50 megawatts. Continued to develop run-of-river hydroelectric projects. As a result of the ongoing developments, we recently completed our first run-of-river hydroelectric generating plant that has 23 megawatt capacity. Three additional run-of-river hydroelectricity projects are under development totaling 165 megawatts. Continued to actively pursue solar development projects in the southwest U.S., which have enabled us to put into an advanced stage of development 120 megawatts of solar energy as of mid‑2010. Increased our investments in solar photovoltaic cell manufacturers Suniva and SpectraWatt, building on our initial investments in 2008. Became a founding member of the Green Exchangeâ„ ¢ venture, which trades environmental futures, options and swap contracts for markets focused on solutions to climate, renewable energy and other environmental challenges. This new exchange offers effective and innovative financial tools to consumers, industrials, project developers, investors and others who wish to participate in these developing markets. This builds on earlier investments that aim to build market infrastructure for environmental commodities, such as APX and Markit. Technological Factors. Technology is vital for competitive advantage, and is a major driver of globalization. Managing technology footprint Goldman Sachs takes a multifaceted approach to sustainability with our technology, a significant component of their operations. Our technology footprint is primarily driven by business growth (the need for more computation) and regulatory obligations. In response, we have adopted three principles that help us make commercially sound decisions while minimizing our environmental impact. 1. Influence vendors to provide products and approaches that reduce or maintain levels of energy consumption and/or increase utilization, including: Lower energy-demand computer chips. V irtualization software for increased utilization. We also encourage companies to invest in virtualization to foster market competition and increased functionality. Denser, high-performance disks. More efficient network switches and increased use of PoE (Power over Ethernet) technology. 2. Influence engineered solutions that maximize resource efficiency: Encourage hardware manufacturers to reduce system-wide energy use. Encourage more energy-efficient hardware designs, such as variable speed fans and power systems that distribute resilience at appropriate levels. Work with established and start-up vendors to develop functionality to support the management of technology capacity across compute farms, extending the capability of our global server footprint. Increase the use of employee-owned remote-access technology (handheld, home office or laptop) for corporate purposes through investment in Software as a Service, desktop virtualization and enterprise security. Make significant investments in our virtual desktop infrastructure to:  » Reduce power and cooling needs.  » Reduce the need for dedicated remote access servers, workstations and laptops for Business Continuity Planning.  » Increase trading floor seating density to reduce the overall number of floors and associated power costs. 3. Drive internal behavior to incorporate sustainability firm wide by: Defining a system architecture that significantly increases utilization. Designing a Holistic Data Center that minimizes energy requirements at any given level of business function. Reducing server purchases and related energy consumption by using the contingency of our server farms to offset ad hoc demand, managing their capacity to maximize utilization and applying an upgrade-in-place philosophy. Including space and energy consumption in the managed costs of our servers. Implementing a structured server reuse program, instead of automatically discarding old servers and upgrading to new ones COGENTRIX-   generating power more efficiently Cogentrix is a Goldman Sachs subsidiary and a US-based independent power producer. As of 2009 year-end, Cogentrix had minority interests in 13 power plants and full ownership in four plants. The portfolio consists of a balanced mix of power facilities, including highly efficient gas-fired combined-cycle, rapid-start peaking, solar thermal and more efficient coal-fired power plants. Together these plants have a total generation capacity of approximately 3,350 megawatts. http://www2.goldmansachs.com/citizenship/environment/env-progress-2009.pdf Analysis of the Marketing Mix Marketing’s purpose is ‘the achievement of corporate goals through meeting and exceeding customer needs and expectations better than the competition’ (Jobber, 2007).   Goldman Sachs is classified as a company whose services are directed at intangible assets (Lovelock, 1983). The service industry augments the marketing mix, the tool used in achieving customer satisfaction and competitive advantage, above the traditional 4p’s of Product, Price, Place and Promotion with People, Physical Experience and Process.   An effective marketing mix should be well blended; matching customer needs with corporate resources and create a competitive advantage.   We will identify, describe and evaluate Goldman Sachs’ effectiveness in key areas as they relate to our own internal and external audit. Spotts and Weinberger (2008) identified that corporations with high brand evaluations are more susceptible to publicity, both positive and negative.   This publicity has a direct effect on the Corporate Brand Opinion and the Corporate Reputation.   Fortune (2011) magazine lists Goldman Sachs in the top 50 most admired companies.   Therefore, the negative publicity Goldman Sachs received in the wake of the global financial crisis should cause some concern for the effect on its corporate reputation.   Being referred to as a ‘vampire squid wrapped around the face of humanity’ is not a sign of positive brand opinion. Analysis of the Marketing Mix (cont.) Goldman Sachs long standing company and brand history allow it weather the effects of the crisis well.   However, they have not ignored the potential problems of continued bad publicity and have launched a new set of marketing efforts in response.   On Fortune’s list, Goldman Sachs was top two in their industry in all categories (innovation, people, global strategy, etc.) except for social responsibility, where they ranked seventh out of ten.   Their new marketing efforts specifically target this deficiency and encompass key pieces of the marketing mix, while meeting corporate goals. Product Goldman Sachs has changed its product offering to include more socially responsible initiatives.   They have expanded their core competency of business advising to include environmental markets and their core competency of asset management to include emerging markets.   In addition, Goldman Sachs has opened a range of services in the United States under the heading ‘Citizenship’.   These services include investment and development for women and small business owners, respectively titled the ’10,000 Women’ and ’10,000 Small Businesses’ initiatives.   The company also no longer offers securitised derivatives in the United States. Environmental Market Services Traditionally, marketing using the environment has been primarily in the manufacturing industries.   Recently, there has been a gradual shift in emphasis of green advertising from business to consumer buyers (Leonidou and Leonidou, 2009 ) placing a higher importance on service firms like Goldman Sachs to respond to the pressures from government and other stakeholders. Goldman Sachs Environmental Markets Group deals with all facets of environment and business.   They invest in clean energy companies, trade in environmental commodities, offer environmental advisement, and insure their own company meets environmental standards. Goldman Sachs also has a set of guidelines they use for every deal or transaction they undertake.   These guidelines are referred to as the ‘Environmental Framework’.   The first line on that section of the website states that ‘a healthy global environment supports the growth of economies and communities’.  Ã‚   We note that economic growth is listed before communal growth. Effective marketing must meet company objectives.   The new products in Environmental Markets align with the corporate slogan ‘Progress is Everyone’s Business’ and meet the corporate objective of wealth building through effective investment.   Our concern is that while these services are designed to increase Goldman Sachs corporate reputation, they do not directly address the true reason for the low scores in social responsibility.   Goldman Sachs complicity in securitising predatory mortgages and subsequent complacency after realising the financial dangers is why the public rates them as an irresponsible company.   We recommend that in addition to the offer of environmental advising services, that Goldman Sachs install new metrics to rate the effectiveness in public opinion of the firm. Asset Management Emerging Markets Goldman Sachs has begun expanding their asset management business into emerging markets such as India and China.   In the United States, giving economic assistance to these nations is a common way of appearing socially responsible.   However, while assisting newly developing countries with investment advising is seen as culturally helpful, Goldman Sachs new services are targeted only at the wealthiest individuals in the country. Product (cont.) Asset management is most easily described as full service investment advice.   Goldman Sachs efforts are primarily focused on reaching out to current advisors in the emerging markets, and training them on Goldman Sachs products and services.   This type of expansion is much different than investing in the regions. In our analysis, we identified wealth management and global presence as strengths for Goldman Sachs already.   Therefore, while these new services are useful for Goldman Sachs to increase profit, they do little to address the weaknesses or threats that the corporation faces.   We recommend that they continue to offer asset management in emerging markets, but do not consider them an effective part of their new marketing strategy.   One of the key definitions of a service firm is that the product is variable.   This variability needs to be carefully controlled when dealing with foreign markets.   We caution Goldman Sachs to be cognisant that investment regulations may be looser in emerging markets and to maintain their focus on being cautious and responsible with customer’s investments. 10,000 Women Goldman Sachs has taken a recent interest in changing their male dominated employee and customer image.   They have increased the number of female Managing Directors by 12% from 2001 to 2009 (Fortune, 2011) and have begun an investment and education initiative in woman owned businesses in the United States and around the globe, referred to as the ’10,000 Women’ programme. 10,000 women is a five year initiative that combines business investing with education.   Goldman Sachs has partnered with 70 academic and non-profit organisations to provide education and funding to women in business.   It reflects an overall corporate commitment to diversity and support of economic growth in underappreciated markets. The 10,000 Women initiative directly addresses the weaknesses we identified of not having a diverse product set.   Though they are reaching a different demographic than usual, they remain in line with the company objectives of investment and progress.   We recommend that Goldman Sachs continue the 10,000 Women programme. 10,000 Small Businesses Growth in the small business sector has a direct positive effect on the overall economy.   Over 60% of all new jobs in the United States are in small businesses (U.S. Economic Census, 2007).   In a similar initiative to the 10,000 Women (both under the ‘Citizenship’ banner), Goldman Sachs is also investing heavily in United States Small businesses. Product (cont.) The 10,000 Small Businesses program includes several dimensions.   It includes investment in local academic institutions for practical business education to the selected owners.   It also includes Goldman Sachs directly providing capital to the approved small businesses to help them grow and develop.   Goldman Sachs will also offer advising to any small businesses that are a part of the initiative in order to help them maximise profitability. 10,000 Small Businesses diversifies Goldman Sachs product offerings as recommended in the SWOT Analysis.   Also, small businesses account for 64% of the layoffs in the current recession (U.S. Economic Census, 2007) so these services directly affect a demographic that was negatively impacted by the credit crisis.   In addition, it also follows the Goldman Sachs corporate objectives.   We recommend they continue with the 10,000 Small Businesses. Goldman Sachs lists the 10,000 Small Businesses and 10,000 Women under the category of ‘Citizenship’.   This category is primarily made up of philanthropic initiatives.   However, neither of these measures is purely philanthropic as there is an expected return on the investment that Goldman Sachs is making.   It is confusing to consumers when a service product is listed with the charitable causes.   We strongly recommend that Goldman Sachs move these two programmes under the title of ‘Services’ moving forward so they are not falsely misinterpreted as charities. Securitised Derivatives One of the largest culprits in the recent financial crisis was securitised derivatives that were financed with sub-prime mortgages (New York Times, 2007).   Goldman Sachs was an active trader in securitised derivatives and as we looked at before, their participation is the main reason for their low image of corporate responsibility.   By no longer offering securitised derivatives in the United States (they are still available in some EU countries, though presumably not financed with sub-prime mortgages) Goldman Sachs is directly changing their service offering to be more socially responsible.   Bloomberg (2010) is concerned that Goldman Sachs is only changing this publicly as a way to clean its image.   We recommend that Goldman Sachs continue to be responsible in their investments and not offer high risk investments in the United States. Summary Goldman Sachs has effectively developed several products that address the weaknesses we identified.   If these services are carried out in a responsible way and conform to our recommendations, they will have a net positive effect on Goldman Sachs overall corporate image.   However, if this new product set is treated merely as a quick image fix, their effectiveness will be lost and the impact could potentially end up more negative than before. Promotion In conjunction with their new service products, Goldman Sachs has also changed the way they approach promotion.   We know that a traditional promotion mix includes advertising, internet/interactive marketing, publicity or public relations, sales promotion, word of mouth promotion, and personal selling.   A successful Integrated Marketing Approach aligns all these communication efforts with corporate goals (Schulz, 2004). New Campaign Prior to 2010, Goldman Sachs relied almost exclusively on word of mouth and personal selling because of the nature of their products.   In September of 2010, they launched a new campaign utilising more traditional mass media.   They launched their first television, magazine, newspaper and online advertisements. According to David Wells, spokesman for Goldman Sachs, the new campaign is ‘expanding our communication to a broader audience in an effort to promote a better understanding of who we are and what we do’. From this, we can infer that their advertising objectives are to create awareness and correct misconceptions. Print, Television, Online The newspaper, magazine and online advertisements are all focused on the new service product in the Environmental Markets.   They feature a field of wind turbines juxtaposed with a man in a hard hat.   The headline is the aforementioned slogan ‘Progress is Everyone’s Business’ and a description of how investments in clean energy lead to job creation.   The message appeals to the feelings and emotions as well as the logical, rational minds of consumers. The television advertisement however, is completely different in tone.   It appeals primarily to the feelings and emotions.   It features artistic, black and white shots of men and women in various outdoor scenes punctuated by a clear ball with a glowing interior.   The voice over mentions concepts like, ‘security’, ‘heart’ and ‘focus’.   The ad concludes with a call to visit the Goldman Sachs website. The Goldman Sachs website functions as part of the promotional mix and is designed to feature further detail on all of their products and services.   When first logging on to the website, the first page says ‘Progress is Everyone’s Business’ and features links to what Goldman calls ‘Stories of Progress’.   These stories are about investments that revitalised urban areas, or helped launch small businesses. Also on the website, a customer can view extended video advertisements describing the ’10,000 small businesses’ initiative, or read a vivid brochure about ’10,000 women’ on their micro sites.   The Environmental Markets micro site gives a full description of all their services as well as links to Case Studies and Environmental Reports on the company for each year. Promotion (cont.) Summary and Recommendations Goldman Sachs developed these new campaigns as part of a revamped promotional mix in an effort to create a better understanding of who they are as a company.   The campaigns are focused around the new products and are designed to increase public and ultimately brand opinion.   We feel that independently, each campaign has strengths.   The print campaign effectively promotes their new product diversity and appeals to consumers in multiple ways.   The television advertisement is striking and designed to stand out amongst the noise.   It also rightfully drives people to the website.   The Goldman Sachs website is informative and entertaining, creates a strong brand image and promotes the new products in an easy to navigate layout. However, successful integrated marketing aligns all three of these.   The print and television advertisements are disparate and unrelated.   The print ad does not support website traffic.   The primary weaknesses that we identified in our SWOT analysis are a lack of product diversity and poor public image.   Goldman Sachs has created the diverse and socially responsible products, and we recommend that their promotional campaign highlight those particular products in an integrated way.   The television, print and website should all highlight the Environmental Markets, ’10,000 women’ and ’10,000 small businesses’.   If they are all aligned and designed in support of each other, it will help inform consumers about these products and create the awareness, correct the misconceptions and ultimately raise the Corporate Brand Opinion of Goldman Sachs. People Because the customer and the service provider must interact for the service to happen, the customer satisfaction is mostly dependent on the service provider (Fisk, 2008).   Ã‚  Therefore an essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of their service is essential if the Goldman Sachs wants to obtain a competitive advantage.   Tierney et al (2003) stated that ‘the best service companies understand that their people are their only products’. Consumers make judgments and deliver perceptions of the service based on the employees they interact with. Employees We identified Goldman Sachs employees as one of their top strengths in our audit.   According to Fortune (2011), Goldman Sachs has an unusually thorough hiring process that may include up to ten interviews.   The recruiting stresses creativity and teamwork.   We also previously noted that Warren Buffet referred to them as the ‘Best Brains’ in the business.   In addition, most of Goldman Sachs’ 14 business principles are focused on the handling and diversity of its people. Goldman Sachs places an emphasis on employing people who will reflect the diversity of the communities and cultures in which it operate. According to Vault/InRoads Guide to Corporate Diversity (2010), they engage in minority outreach programs, providing scholarships for university and business school students, and diversity leadership training for its current employees. At this point, it seems that Goldman Sachs continues to effectively recruit, train and hire.   It’s important that they maintain the ability to employ the best people, but we see no current threat to them losing their hold on the top personnel in the United States financial services industry. As part of the inseparability of service provider and customer, Fisk goes on to say that customers are often a co-producer of the service rendered.   Therefore it is paramount that Goldman Sachs engages the diverse people that their new service products are designed for as those customers are critical to the success. Customers We believe that Goldman Sachs has effectively segmented the consumers most in need of their services and developed investment and education products to suit their needs.   For example, the company initiated a group of women dealing with small businesses with the aim of raising a shared economic growth.   From the ’10,000 women’ micro site: ‘Investing in women is one of the most effective ways to reduce inequality and facilitate inclusive economic growth. Investing in education for women has a significant multiplier effect, leading to more productive workers, healthier and better-educated families, and ultimately to more prosperous communities’.   Ã‚  As long as they continue to reach the right people, they will successfully increase the perception of corporate social responsibility. Place, Process and Physical Evidence The service setting and service process are less important in Goldman Sachs business than product, promotion and people.   Yet it is important to note that the place, process and physical evidence have changed in accordance with the new products. Order Takers Goldman Sachs place used to be unknown to most of their customers.   The service process took place over the phone or email.   At the rare times that a customer needed to meet face to face, they would physically go to a Goldman Sachs branch. As they have launched a new product and promotion effort, Goldman Sachs has also changed the place, process and physical location that they do business.   There is a much larger element of pro-active selling than there was before. Client Engagement As a part of the new initiatives, Goldman Sachs service providers are spending more time engaging clients face to face.   The Environmental Markets campaign requires representatives from Goldman Sachs to visit every business they are considering investing in or advising.   The 10,000 Women has Goldman Sachs employees giving seminars and participating in outreach programs to encourage attendance in the academic pieces of the initiative.   10,000 Small Businesses is similar in the fact that it now requires Goldman Sachs employees to actively seek out small business investments.   In addition, the company’s overall service process has transitioned more to meeting customers as opposed to phone sales. The transition from order taker, to outside sales firm is one that we completely support.   If Goldman Sachs truly wants to engage the consumer and increase its Corporate Brand Image, meeting customers face to face is an important step.   We have already established the advertising goals are to create awareness and correct misconception.   We have also established that in a financial services company, the only product is the people.   Therefore, we strongly recommend that Goldman Sachs continue to meet customers face to face whether through client visits or mass seminars.   Having their people communicate the advertising message is an example of putting the most powerful resource behind their biggest need. Reference Leonidou, C. and Leonidou, L. (2009) Research into environmental marketing/management: a bibliographic analysis. EuropeanJournal of Marketing, 45 (1), pp. 69-103. Spotts, H. and Weinberger, M. (2010) Marketplace footprints: connecting marketing communications and corporate brands.   European Journal of Marketing, 44 (5), pp. 591-609.

Definition and Examples of Syncopy in English

Definition and Examples of Syncopy in English Definition Syncope is a traditional term in linguistics for a contraction within a word through the loss of a vowel sound or letter, as demonstrated, for example, in the casual pronunciation of cam(e)ra, fam(i)ly, fav(o)rite,  mem(o)ry, veg(e)table, and butt(o)ning.Syncope occurs in multisyllabic words:  the dropped vowel (which is unstressed) follows a strongly stressed syllable.The term syncope is sometimes used more broadly to refer to any vowel or consonant  sound thats commonly omitted in the pronunciation of a word. The standard term for this general process is deletion. Syncope is sometimes indicated in writing by an apostrophe. Deleted sounds are said to be syncopated. Adjective: syncopic. See Examples and Observations below. Also see: ApocopeConnected SpeechElisionHaplologyMetaplasmPhonetics and  PhonologyPrinciple of Least EffortProthesis EtymologyFrom the Greek, a cutting off Examples and Observations The term [syncope] is most commonly applied to vowel loss, as in the common British pronunciations of medicine as /medsin/ and of library as /laibri/, but is sometimes extended to consonant loss, as in ever eer and boatswain bosun.(R.L. Trask, A Dictionary of Phonetics and Phonology. Routledge, 1996)Stress ConditionsWhat are the stress conditions on syncope? The vowel that exhibits syncope must be stressless. The vowel can be at the beginning of the word. It can also occur in the middle of a word before a string of one or more stressless syllables. Thus, a word like opera almost always becomes opra, a word like general, genral, a word like chocolate, choclate. In longer words, syncope is possible as well, and more options surface. For example, respiratory can surface as respirtory or respritory.(Michael Hammond, The Phonology of English: A Prosodic Optimality-Theoretic Approach. Oxford University Press, 1999)Syncope as Deletion of Vowels or Consonants- English spelling can be a pai n, but its also a repository of information about the history of pronunciation. Are we being lazy when we say the name of the third day of the working week? Our ancestors might have thought so. Given that it was once Wodens day (named after the Norse god), the d isnt just for decoration, and was pronounced up until relatively recently. Who now says the t in Christmas? It must have been there at one point, as the messiah wasnt actually called Chris. These are examples of syncope.(David Shariatmadari, Eight Pronunciation Errors That Made the English Language What It Is Today. The Guardian [UK], March 11, 2014)- PARLIAMENT is a syncopic word because the I is silent; MAAM is also a syncopic word because the D disappears. The other words of this nature include:ASN: ASSOCIATIONBOSN: BOATSWAINCOS: BECAUSEFOCSLE: FORECASTLESYMBOLOGY: SYMBOLOLOGY The act or process of making such a contraction is known as syncopation.(O. Abootty, The Funny Side of English. Pustak Mahal, 2004)Syncope in PoetrySyncope . . . is what we call either the omission of a consonant (as in neer) or the dropping of an unstressed vowel which is flanked by consonants:Ill fares the land, to hastening ills a prey(Goldsmith, The Deserted Village)In this line hastening, normally trisyllabic, is reduced by syncope to a disyllable, and the line is thus kept within its decasyllabic confines.Poetic contractions like these are found most often in English verse composed from the Restoration to the end of the 18th century. In the poetry of this period the contractions are often indicated typographically by apostrophes: e.g., hastning.(Paul Fussell, Poetic Meter and Poetic Form, rev. ed. Random House, 1979) Pronunciation: SIN-kuh-pee

Self interest rightly understood VS altruism Essay

Self interest rightly understood VS altruism - Essay Example Although everybody has his or her own life, the principle of self-interest rightly understood underlies the concept of mutual interdependency among a democratic American society. Another important point is the admirable conformity of self-interest to human weaknesses. It is easy to learn and retain the traits of altruism and combine personal interests towards a common good that override selfish interests of individuality. An example of the concept of self-interest rightly understood is its self-regarding nature that connects a person’s private life with that of others in the society. The article mentions that it is a remedy to unnecessary individualism and self-centeredness. Self-interest rightly understood encourages collectivism regarding altruism in a way that convinces people that their actions in the society still come back to them and affect their private life. The article cites Montaigne who mentions that virtuousness results in happiness in the society. This confirms that a person’s private interest should be to do well and adhere to the traditional doctrine of interest towards common

Anti-War Movement & Women Liberation Movement Research Paper

Anti-War Movement & Women Liberation Movement - Research Paper Example The fear had arisen due to communist victory in countries neighbouring Vietnam. Moreover, the country considered France weak in stopping the influence of communism in the region. Therefore, the administration viewed that France needed help to overcome the influence of communism from countries such as Japan and USSR (King Web). Moreover, the achievement of Vietnam independence in 1945 was seen as a threat of French existence. Initially, Ho Chi Minh had led the Vietnamese people to gaining independence from French and Japanese occupation (King Web). However, the French was not satisfied but willing to regain the lost colony. However, due to various challenges, the French sought the help of United States. In the speech, King notes,† Even before the French defeat we encouraged them with massive financial and military supplies to continue the war even after they had lost the will† (King Web). On the other hand, the government impression was that Vietnamese people were not prep ared for independence (King Web). As a result, the government was against the establishment of a genuine form of government established out of revolution. The government had been established without the assistance of China but indigenous forces and remnants of communists. The peasants had faith in the new leadership in implementing land reforms. On the other hand, the United States intended to control the administration of Vietnam. In fact, United States had a notion that Ho was not fit to unite the already divisive country. Therefore, United States ensures installation of their man Premier Diem (King Web). Diem became authoritarian, non-reformist, and failed to accept oppositions. Consequently, there were various revolts against the rule. As a result, the troops came in the country to quell the revolt against their chosen person. Moreover, military dictatorship of the United States continued after the toppling of Diem from power. However, in the United States, people were promised that military intervention was furthering the course of democracy and land reforms. Most, the message was delivered in terms of leaflets to the people. Additionally, United States deemed National Liberation Front as communist. As a result, the revolution was viewed as an enemy of the United States. Moreover, United States linked the death of Diem with communist activities in the region. Therefore, military advisors were sent to quell the groups of communism in south as well as the rebel movement. Moreover, the involvement was meant to curtail â€Å"aggression from the north† (King Web). In the 1960s, there was a rise of a new generation of students. Most of the students developed a culture of non-conformist. In fact, they resisted most of the ideal of America. One of the significant forms of resistance was organised in Berkley students against the House Un-American Activities Committee (Kitchell Web). They were against United States oppression of political freedom. There was also establishment of a radical student movement known as SLATE to inform Student on various issues regarding the country. As a result, there was increased interest in politics. Moreover, student participated in off-campus issues such as civil rights, nuclear production, and apartheid. Civil rights inspired student activism and helped students with rigorous objection. This was prominent among student of Morehouse College as opined by King (King Web). Victory in free speech and civil rights encouraged the student

Raising Achievement of Ethnic Minority Children Essay Example for Free

Raising Achievement of Ethnic Minority Children Essay This literature review would explore the barriers in raising educational achievements of ethnic minority students. As this is a broad area of concern the literature would examine two main barriers such as social background issues and English as Additional Language (EAL) while briefly looking at other barriers such as†¦ Statistical data collected from the Pupil Level Annual School Census (PLASC) 2002 would be analysed in respect to this group social economic status and its effect on their learning. The literature would outline the significance of raising achievement, particularly ICT teacher’s responsibility. This report would identify some strategies/solutions including pedagogical approaches to raising achievement which would be supported by research. The overall findings would illustrate why ethnic minority children underperform academically than their counterparts in school. INTRODUCTION It is important to recognise that ethnic minority pupils may fall into the category of low class low achievement. (Battle and Lewis 2010 pg35) said â€Å"a person’s education is closed linked to their life chances, income and wellbeing† it’s therefore, fair to say that ethnic minority communities are most likely to underachievement than others because of their socio-economic conditions. Language in education has long been the subject of attention by educationists at all levels. Initially as concerning the problem of teaching English to children for whom it is not a first language, The Swann Report 1985 pg385 Other drawbacks to raising achievement are institutional racism, lack of motivation, lack of suitable challenge, the appropriateness of activities and tasks, a mix-match of expectations, a perceived irrelevance of the activities and tasks. National Education Authority claim to be â€Å"raising achievement to higher levels and closing student achievement gaps are priorities in schools and communities at all economic levels and in urban, rural, and suburban settings†. (http://www.nea. org/home/17413. htm. Accessed 02/11/12) What is Raising Achievement? According to (DfES 0013-2006. Pg. 6) (Excel and enjoy) raising achievement means a â€Å"tailored education for every child and young person, that gives them strength in the basics, stretches their aspirations, and builds their life chances. It will create opportunity for every child, regardless of their background†. Teachers have a committed liability to enable all learners to attain and achieve their full potential, whether they are SEN (Special Education Needs), EAL (English as an Additional Language) or ethnic minority student. What is Ethnic Minority? The ethnic minorities in the UK, 50% are Asian or Asian British (Indian, Pakistani etc. ), 25% are Black or Black British (Black African, Black Caribbean etc. ), 15% are Mixed Race, 5% are Chinese and 5% are of other ethnic backgrounds. (http://www. historylearningsite. co. uk/ethnic_minorities_education. htm. Accessed 02/11/12) Cabinet Office defined it as â€Å"Ethnicity refers to cultural heritage (thus the term ethnic minorities can also be used to include White ‘ethnic’ minority groups in Britain, such as the Irish or people from other European countries). However, the systematic historical and continuing pattern of disadvantage for Black and Asian groups singles them out for special consideration†. (webarchive. gov. uk. Accessed 02/11/12). Barriers to Raising achievement Socio-Economic Backgrounds: Socio class can cause inequality in class which could in turn influence the achievement in children; (C. Stephen pg. 269) Social scientists have recognised the importance of an individual’s family socio economic status (SES) has an influence on the academic achievement of children since the mid-1960s. It could cause low their self-confidence and self-esteem â€Å"ethnic minorities may have special issues related to self-esteem. Because of prejudice, minority members are likely to see a negative image of themselves† ( DeLamater. J Myers. D pg. 88). (http://www. historylearningsite. co. uk/ethnic_minorities_education. htm) â€Å"Ethnic backgrounds that are less successful in education is because they have a higher percentage of pupils from working class backgrounds. Also the lower a childs class position, the lower their income. Bangladeshi, Pakistani and Black pupils are more likely to be raised in low income families. This can affect how well they do in school because lack of funds means lack of school equipment, less favourable working conditions e. g. cold house, no desk etc. This inequity could lead to poor or erratic attendance which was cited as a contributory factor to poor attainment in several schools. Table1 the Pupil Level Annual School Census (PLASC) 2002 illustrates the impact of socio-economic disadvantage by comparing relative GCSE performance for pupils who are eligible for free school meals. This shows that pupils from lower socio-economic groups tend to achieve less good results than those from higher socio-economic groups and that this difference is particularly large for white pupils. (Aiming High Raising the Achievement of Minority Ethnic Pupils) Table2: The pupil level annual school census (PLASC) 2002 characteristics: Proportion achieving 5+ A*-C GCSEs for those entered for GCSEs in Maintained Schools in 2002 Note: these charts are based on data collected as part of the 2002 Pupil Level Annual Schools Census. From 2003, data will be based on an updated set of categories including mixed heritage, Gypsy/Roma and Travellers of Irish heritage which are listed at annex A. (Aiming High Raising the Achievement of Minority Ethnic Pupils) Discrimination on grounds such as race will affect effective learning fundamentally in most cases, which is linked to disparities in school. Some schools are institutionally racist, says Oftseds Director of Inspections, Jim Rose to the annoyance of teachers unions. Mr Rose said Much of that [racism], we think, is to do with unwitting stereotyping of youngsters and the lack of expectation or lowered expectation of teachers as a result of that sometimes (http://news. bbc. co. uk/1/hi/education/294078. stm)†. With the fact that their â€Å"ethnicity influences their class and their class influences their attitude†, there is concern about the aspirations of underprivileged children â€Å"socio-economic barriers may hinder aspiration formation for these children because of lack of mentors, opportunities, and resources and also doubt their ability to attain in learning† (http://www.learningbenefits. net/Publications/ResReps/ResRep27. pdf pg3). The majority of schools are engaged in a wide variety of initiatives to improve provision and raise the attainment of all pupils. However, few schools monitor these activities systematically and rarely do they have a specific ethnic focus. (Raising_the_attainment_of_minority_ethnic_pupils_school_and_LEA_responsespg7). Strategies to raising achievement of Socio-economic barrier: Having realistic expectations of the educational achievement of children of lower socioeconomic groups will make them feel they can achieve their potential. â€Å"Expectations are also shaped by teacher and student perceptions of the reasons for successes and failures. A low ability student, who views failures as lack of ability and successes as luck, will lose his motivation, feeling that there is little he can change to improve his learning†. (Rose Miller 2001) As evidenced earlier pupils from ethnic minority group have low self –esteem therefore, it is crucial for teachers to encourage the child or young person to find their own preferred style and rhythm of learning so they are motivated to pursue their learning process, making them have ownership of their own learning and work. To help raise achievement teachers and leaders should monitor and track achievement, encourage and support the child to maximize their potential be aspirational for them. â€Å"Parents with fewer financial resources tend to hold lower aspirations for their children, and young people from socially disadvantaged backgrounds tend to have lower aspirations than their more advantaged peers (Schoon, 2006). Promoting a culturally friendly environments and establishing classroom ethos of respect with a clear approach to racism and bad behaviour â€Å"modelling and promoting values, attitudes and behaviour supportive of race equality in class would explore and target underachievement to raise attainment†. (excellentandenjoymentlearning pg23). Strategically choosing students to work in groups, peer assessment where they can see others work which could help them shape their own work and attain a better grade. However, teachers need to provide students with a stress free learning environment so they can feel included . (EVIDENCE OF WHY THEY NEED STRESS FREE ENVIRON,ENT) The revised National Curriculum includes a statutory inclusion statement setting out how teachers can ensure the curriculum is accessible to all pupils which would certainly help raise attainment for also ethnic minority students . It states that teachers must follow three principles for inclusion: setting ethnic focus. (Raising_the_attainment_of_minority_ethnic_pupils_school_and_LEA_responsespg7). Strategies to raising achievement of Socio-economic barrier: Having realistic expectations of the educational achievement of children of lower socioeconomic groups will make them feel they can achieve their potential. â€Å"Expectations are also shaped by teacher and student perceptions of the reasons for successes and failures. A low ability student, who views failures as lack of ability and successes as luck, will lose his motivation, feeling that there is little he can change to improve his learning†. (Rose Miller 2001) As evidenced earlier pupils from ethnic minority group have low self –esteem therefore, it is crucial for teachers to encourage the child or young person to find their own preferred style and rhythm of learning so they are motivated to pursue their learning process, making them have ownership of their own learning and work. To help raise achievement teachers and leaders should monitor and track achievement, encourage and support the child to maximize their potential be aspirational for them. â€Å"Parents with fewer financial resources tend to hold lower aspirations for their children, and young people from socially disadvantaged backgrounds tend to have lower aspirations than their more advantaged peers (Schoon, 2006). Promoting a culturally friendly environments and establishing classroom ethos of respect with a clear approach to racism and bad behaviour â€Å"modelling and promoting values, attitudes and behaviour supportive of race equality in class would explore and target underachievement to raise attainment†. (excellentandenjoymentlearning pg23). Strategically choosing students to work in groups, peer assessment where they can see others work which could help them shape their own work and attain a better grade. However, teachers need to provide students with a stress free learning environment so they can feel included . (EVIDENCE OF WHY THEY NEED STRESS FREE ENVIRON,ENT) The revised National Curriculum includes a statutory inclusion statement setting out how teachers can ensure the curriculum is accessible to all pupils which would certainly help raise attainment for also ethnic minority students . It states that teachers must follow three principles for inclusion: setting suitable learning challenges; responding to pupils’ diverse learning needs; and overcoming potential barriers to learning and assessment for individuals and groups of pupils. (cabinet office pg14). NALDIC (National Association for Language Development in the Curriculum), states that we should therefore ensure access to and progress through the curriculum or subject content. (using ict for eal pg5) Also very few schools review their curricular and pastoral strategies to ensure that they are sensitive to the ethnic groups in the student population and the wider community. In those instances where schools have done this as a result of concerns about a particular minority ethnic group, positive outcomes have resulted. (Raising_the_attainment_of_minority_ethnic_pupils_school_and_LEA_responsespg7) Schools working effectively with pupils in low attaining groups were not found to adopt specific approaches for particular groups of pupils such as minority ethnic groups, but instead personalised the curriculum, pedagogy and assessment such that pupils in any group could benefit. (Effective Teaching and Learning for Pupils in Low Attaining Group). Self- assessment and appropriate target setting according to individual learning styles would help them to build identities as successful learners. The new Teachers Standards (DfE, 2011) would enable this strategy to work perfectly as teachers have to Adapt teaching to respond to the strengths and needs of all pupils†¦evaluate distinctive teaching approaches to engage and support them. (Standard 5 The QTS Standards: DFES ‘Qualifying to Teach’(2002) In additional, as â€Å"they are much more likely than their peers of a higher socioeconomic environment to have a poor attendance, leave school earlier and with fewer qualifications, and are at far greater risk of being excluded from school. † http://education-landscapes. eu/pdf/learning_barriers. pdf . Teachers recognise strengths and improvements praising their effort would encourage children participation. Using positive words (‘I’ve seen a spark in you) and encourage this group would make them feel motivated, believe in themselves and appreciated to want to attend school (promoting attendance) regardless of any socio-economic worries. Attending â€Å"parents evenings and other less formal school functions can help understand difficulties and help to remove any barriers† http://education-landscapes. eu/pdf/learning_barriers. pdf. This could help build parent teacher relationship and both parties could devise ways to help raise the achievement and eliminate barriers affecting this young person’s learning. ? Respect frustration and encourage a positive approach to setbacks. http://education-landscapes. eu/pdf/learning_barriers. pdf. English as an Additional Language (EAL) barrier on Ethnic Minority: EAL learners will be affected by attitudes towards them, their culture, language, religion, and ethnicity http://www. mkweb. co. uk/emass/documents/Website_EAL_Artwork. pdf. The proportions of pupils with English as an additional language are from ethic minority background groups about five per cent (Black Caribbean pupils) to over 90 per cent (those from Bangladeshi backgrounds). Approximately 9. 3% (over 632,000) of all pupils in schools in England are recorded as having English as an additional language (EAL) according to Statistics of Education 2002(aiminghighraisingachievent pg28). These speech patterns are argued to be consistent with many low income families which are inadequate to meet the demands of the education system. These patterns directly contribute to educational failure as students cannot always understand elaborated speech which teachers use and teachers often misunderstand students who use the restricted speech. As a result there is a breakdown in communication between teachers and pupils. http://www. historylearningsite. co. uk/ethnic_minorities_education. htm. This is a major barrier to achievement as English is not their first language and cannot communicate effectively in lesson, with peers and content of the curriculum it is helpful for the to access prior knowledge so they have a fair understanding before the next lesson â€Å"Language learners need access to the subject curriculum while they are learning English†. EAL students learning is NOT a learning difficulty, learners should not be placed in groups or sets for ‘slow learners’–they need good peer models of subject specific talk and writing. Teacher expectations are powerful determiners of student success. Teachers should reflect high expectations in the ambitious targets set for these children. Bilingual learners need to make more progress each year than their peers in order to catch up (Collier, 1995) –their efforts need to be acknowledged and appreciated, to build their self-image and self-esteem as successful learners. (Making the Difference Teaching and learning strategies in multi-ethnic schools) Solution/Approaches: (Bourne, 1998 and others) Reforming the mainstream to be more language aware is not only good for bilingual learners, but benefits ALL students (Making the Difference Teaching and learning strategies in multi-ethnic schools). Education authorities have recognised the fact that student with EAL will struggle to reach their potential and has incorporate into the new Teachers Standards, saying that â€Å"all teachers and trainee teachers will benefit from an understanding and recognition of EAL as a significant field of teaching and learning. (http://www. naldic. org. uk/eal-teaching-and-learning/outline-guidance/pedagogy.) It is important to recognise that children learning EAL are as able as any other children, and the learning experiences planned for them should be no less cognitively challenging â€Å"High challenge can be maintained through the provision of contextual and linguistic support and raise attainment. (ExcellenceandEnjoyment:learningandteachingintheprimaryyears,Creatingalearningculture:Classroomcommunity,collaborativeandpersonalisedlearning(DfES 0522-2004 G) However, Schools and colleges will need therefore to provide both physical and virtual learning environments that motivate and support the EAL learner’s distinctive needs. Raising achievement of ethnic minorities students with low attainment and EAL by developing appropriate resources across the curriculum; make effective use of displays boards to support their learning and develop their knowledge of the linguistic, cultural backgrounds. (excellentandenjoymentlearning pg32) It is a legal requirement for literacy to be included into lesson; literacy is fundamental to good learning and achievement. It must therefore be a top priority for teachers consider how subject specific vocabulary like writing out keywords on white board, spelling and pronouncing words correctly which would help improve their English language â€Å"grammar should be introduced, modelled, extended and supported through the teaching of subject content to enhance literacy† (ExcellenceandEnjoymentlearningandteachingforbilingualchildrenintheprimaryyears). Organise small groups for computer-based activities that enable early stage learners to work with other first language speakers and to hear good models of English. â€Å"Establishing layered curriculum targets as a context for language development. Speaking and listening: guided sessions for language development. † (Effective Teaching and Learning for Pupils in Low Attaining Group). Using ICT to raise achievement of Ethnic Minority pupils with EAL. ICT has a vital role to play in providing the appropriate resources and technology for both learners and teachers. Using ICT to support EAL students presents challenges for many teachers of how best to make use of these new and emerging technologies to raise the achievement of their EAL students. (Using ICT to support students who have English as an additional language) Using Creative use of ICT in the classroom can promote inclusion and reflect cultural and linguistic diversity. Multimedia Projects provide excellent opportunities for learners to work collaboratively with other first language speakers. Email, local network links, user groups and video conferencing facilities provide opportunity for learners to communicate with proficient speakers of English and also of their first language across the world. Pupils learning EAL require opportunities to draw on additional contextual support to make sense of new information and language. Content learning for pupils learning EAL can be greatly improved through the use of visual support. This can help learners to conceptualise learning tasks that are being presented to them, or in which they are engaged, even when their knowledge of the target language is limited. http://www. naldic. org. uk/eal-teaching-and-learning/outline-guidance/pedagogy OCD/Migraine/ Metal plate in head due to past injury. If *** bumps her head call carer immediately/ unhappy to come SRS/difficult to make friends/suffered bullying/kept away from other students at break times in primary school/attention seeker/ mother died due to violently attacked by father (sees father in prison) / CAMHS/ care placement/ Literacy/maths/low self esteem/limited support from home/ IEP/PEP Pedagogy approach to EAL EAL pedagogy is the set of systematic teaching approaches which have evolved from classroom based practices in conjunction with the development of knowledge through theoretical and research perspectives. These approaches meet the language and learning needs of pupils for whom English is an additional language. They can be used in a wide range of different teaching contexts. http://www. naldic. org. uk/eal-teaching-and-learning/outline-guidance/pedagogy Setting out limited number of objectives criteria describe what the outcomes will look like when they are achieved; and actions linked to the target objectives to identify what has to be achieved by the end of lesson is said to raise success of learners whose second language is English (excellentandenjoymentlearning pg23). Personalisation is the key to tackling the persistent achievement gaps between different social and ethnic groups. It means a tailored education for every child and young person, that gives them strength in the basics, stretches their aspirations and builds their life chances. Higher standards, better schools for all (HMSO 2006)(from-excellentandenjoymentlearning pg14) The development of EAL pedagogy has been influenced by social constructivist theories which emphasise the importance of scaffolding learning, and those which highlight the importance of socio-cultural and emotional factors. Children learning EAL will be affected by attitudes towards them, their culture, language, religion and ethnicity. (excellentandenjoymentlearning pg14) Learning of English should be distinguished into communicative skills and cognitive and academic language proficiency. Children should be paired up in group so they can become conversationally fluent in the new language by communication and collaborating with others and to catch up with monolingual peers in the development of cognitive and academic language. Activating pupils prior knowledge â€Å"Finding out what pupils know about a topic through questioning, supporting self-monitoring and using KWL (Know, Want to find out, Learned) charts, brainstorming in small groups or pairs, discovery tasks, enabling use of first language. †http://www. naldic. org. uk/eal-teaching-and-learning/outline-guidance/pedagogy. Peer and share, questioning strategies using oral feedback is also important to move learners towards the forms of language used in writing (cognitive) and linguistic development. Children learning an additional language are not just learning vocabularies, grammars and pronunciations; it helps them to learn all other language functions such as questioning, analysing, hypothesising that they need for other subjects like mathematics, science, ICT and so on. Planning lesson for a class that has EAL student.

Billy Budd - Convictions Shaken Essay -- essays research papers

In Herman Melville’s Billy Budd, Sailor, readers are introduced to the conflict of good and evil between Billy Budd and Claggart. However, there is another conflict, which, in ways is more significant than the epic clash of good and evil. Vere’s struggle between duty and conscience is more significant because it occurs in the mind. Whereas Billy Budd was clearly the noble sacrificed hero and Claggart was the vindictive villain, duty is just as noble as conscience and conscience is just as noble as duty. Melville sets up this conflict by placing a man with the intuition and innocence of a child, in the hands of a captain amidst war. In a description of Captain Vere it can be anticipated that Vere, who values peace and common good, would be in conflict with his job, which requires him to be a militaristic authoritarian. Captain Vere learns important lessons when innocent hands bring about destruction of life. Vere was moved by his beckoning duty as captain, to convince t he drumhead court to convict Billy Budd. However, the paternal emotions towards Billy Budd and his rational thinking did invoke indecision. Captain Vere realizes, when he has to act, he does not have the strength of conviction he had thought. Vere’s character is written to be a medium between Billy Budd and Claggart. Vere, like Claggart, has experience that makes him a salted sailor. However, like Billy Budd, Vere has been able to hold on to his natural intelligence. Along with his intelligence, Vere has an innocent quality to him: he believes when a crisis between duty and conscience calls, he will be able to hold fast to duty as called for on the seas during war. Captain Vere learns that in the face of conflict between duty and conscience, he does not have the strength of conviction he thought he had. Captain Vere learns that to balance conscience and duty is a very hard task even for a man as conscious of his actions as he is. Captain Vere, despite having paternal feelings towards Billy Budd, soon realizes the decision facing him. After Claggart’s last breathe, â€Å" ‘Fated boy,’ breathed Captain Vere in tone so low as to be almost a whisper, ‘what have you done!’ † (350). Vere’s paternal feelings can be seen when he says â€Å"Fated boy†. The fact Captain Vere whispers this implies the emotions he is feeling. He realizes the severity of Billy’s actions and reproaches him as a father would a child... ...d conscience. The manifestation of complete opposites in the characters of Billy Budd and Claggart give readers a very clear sense of the enemy, and which character to emulate. However, Billy Budd and Claggart are very exaggerated views of balancing opposite interests. Melville, more subtly, uses the murder of Claggart by Billy Budd, to show the readers the balance needing to be achieved within Captain Vere. His struggle between duty and conscience are representative of different interests. These different interests might not be clearly right and wrong. Duty is just as noble as emotion and vice versa. Despite what people think of themselves, it is very hard to strike that balance in which both interests can be achieved. Vere’s actions when wavering between emotion and duty reflect how actions counteract one another. One minute Vere was calm and the next he was passionately exclaiming. The human condition is always shifting, always looking for that balance of interests. Peo ple believe strongly in many things, but when the strong beliefs are pitted against one another balance must be found. As Vere learned, in the face of conflict between two rights, he finds his convictions shaken. Billy Budd - Convictions Shaken Essay -- essays research papers In Herman Melville’s Billy Budd, Sailor, readers are introduced to the conflict of good and evil between Billy Budd and Claggart. However, there is another conflict, which, in ways is more significant than the epic clash of good and evil. Vere’s struggle between duty and conscience is more significant because it occurs in the mind. Whereas Billy Budd was clearly the noble sacrificed hero and Claggart was the vindictive villain, duty is just as noble as conscience and conscience is just as noble as duty. Melville sets up this conflict by placing a man with the intuition and innocence of a child, in the hands of a captain amidst war. In a description of Captain Vere it can be anticipated that Vere, who values peace and common good, would be in conflict with his job, which requires him to be a militaristic authoritarian. Captain Vere learns important lessons when innocent hands bring about destruction of life. Vere was moved by his beckoning duty as captain, to convince t he drumhead court to convict Billy Budd. However, the paternal emotions towards Billy Budd and his rational thinking did invoke indecision. Captain Vere realizes, when he has to act, he does not have the strength of conviction he had thought. Vere’s character is written to be a medium between Billy Budd and Claggart. Vere, like Claggart, has experience that makes him a salted sailor. However, like Billy Budd, Vere has been able to hold on to his natural intelligence. Along with his intelligence, Vere has an innocent quality to him: he believes when a crisis between duty and conscience calls, he will be able to hold fast to duty as called for on the seas during war. Captain Vere learns that in the face of conflict between duty and conscience, he does not have the strength of conviction he thought he had. Captain Vere learns that to balance conscience and duty is a very hard task even for a man as conscious of his actions as he is. Captain Vere, despite having paternal feelings towards Billy Budd, soon realizes the decision facing him. After Claggart’s last breathe, â€Å" ‘Fated boy,’ breathed Captain Vere in tone so low as to be almost a whisper, ‘what have you done!’ † (350). Vere’s paternal feelings can be seen when he says â€Å"Fated boy†. The fact Captain Vere whispers this implies the emotions he is feeling. He realizes the severity of Billy’s actions and reproaches him as a father would a child... ...d conscience. The manifestation of complete opposites in the characters of Billy Budd and Claggart give readers a very clear sense of the enemy, and which character to emulate. However, Billy Budd and Claggart are very exaggerated views of balancing opposite interests. Melville, more subtly, uses the murder of Claggart by Billy Budd, to show the readers the balance needing to be achieved within Captain Vere. His struggle between duty and conscience are representative of different interests. These different interests might not be clearly right and wrong. Duty is just as noble as emotion and vice versa. Despite what people think of themselves, it is very hard to strike that balance in which both interests can be achieved. Vere’s actions when wavering between emotion and duty reflect how actions counteract one another. One minute Vere was calm and the next he was passionately exclaiming. The human condition is always shifting, always looking for that balance of interests. Peo ple believe strongly in many things, but when the strong beliefs are pitted against one another balance must be found. As Vere learned, in the face of conflict between two rights, he finds his convictions shaken.

Coffee Bean

Currently, the price of coffee in the market is very high, but farmers receive less money than what they do. Furthermore, when world coffee prices rise, the price that customers pay in the shops usually goes up too. Yet, when world coffee prices fall, the price in the shops doesn't come down. According to www. newint. org, coffee is a multi-million dollar industry, but the profits don't go to the farmers who actually work so hard to grow the coffee beans, and carry all the risks of failing crops or falling prices. Most of the profits go to the shippers, roasters and retailers.For example, while a cup of coffee costs $4-5, farmers get only 10% of that cost. To sum up, this is unfair with farmers who should receive more money for their coffee products. Besides the price of coffee beans is low, speculators also make the price pressure with the farmers’ productions. For example, after harvesting the coffee beans, farmers immediately have to sell their products to collect the capit al and prepare for next season. That is the reason why farmers don’t have good price. In order to get price stability, Fair Trade has emerged to help farmers with their products.According to www. fairtrade. net, Fair Trade coffee producers are small family farms organized in cooperatives or associations which the farmers own and govern democratically. So, after joining Fair Trade, the price of coffee beans will be stable when farmers have harvested it. To sum up, farmers are not only more money but also depend on price. However, there are lower quality coffee beans which are sold at a price equal to the price of good quality coffee through fair trade. If farmers joined in Fair Trade, all their products which are good or bad also sold the same price that is not fair.According to www. ssireview. org, Fair Trade-certified coffee is growing in consumer familiarity and sales, but strict certification requirements are resulting in uneven economic advantages for coffee growers and l ower quality coffee for consumers. Farmers are selling a different thing than they are producing. For instance, 1 bag of good quality coffee is sold at higher price than 1 bag of lower quality coffee in the market. If farmers joined in Fair Trade, those two bags would sell the same price. To sum up, farmers should not receive more money with their lower products.Besides, to be able to earn more money, while the price of coffee beans in the market isn’t high, farmers need to have more products which sell to raise their income. That reason why the government should support about the capital and lower interest rates those farmers can produce more productions. In addition, the government should invest for research new varieties with higher yields. For instance, the government will lend to farmers to buy materials, after the harvest, farmers would pay back for the government. All in all, if there are more yields and productions, farmers would earn more money without lower price.