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The Global Financial Crisis and Its Impacts Essay

Introduction This paper investigates the influence of the global financial crisis (GFC) on world economies, scrutinizing the key financial indicators to do so. In addition, a case of a company is studied to evaluate the impact of GFC on a particular firm, and consider the capability of the firm to survive the crisis. The Impact of the Global Financial Crisis on the Economy Explanation and Definition of Financial Crisis The Global Financial Crisis (GFC) took place during the late 2000s, namely, in 2007-2009, and affected a large number of countries all over the world. GFC was the worst financial crisis since the 1930s, that is, after the infamous Great Depression (Savona, Kirton, and Oldani 4). Furthermore, GFC triggered what is known today as the Great Recession of the late 2000s – early 2010s, a general economic decline which is stated to have been the worst global recession since the times of the Second World War (Savona, Kirton, and Oldani 3). GFC began with the collapse of the housing and stock markets in the United States of America; such a number of subprime mortgages was taken that approximately 9 million owners of houses or apartments in the USA owed their banks more money that the total cost of all their property (Karanikolos et al. 1323). An increasing number of individuals failed to fulfill their financial obligations towards their banks or other mortgage providers; furthermore, the price of real estate went down, and fewer people started taking house loans; on the whole, “the value of mortgage-backed securities plummeted” (Karanikolos et al. 1323). The economic bubble burst, and the crisis affected the mortgage and housing markets. Channels through Which the Financial Crisis Was Transmitted Inside an Economy The financial crisis, apart from having spread to a large number of countries worldwide, also influenced the internal market of the U.S., affecting numerous sectors of the American economy. The mechanism in which it spread consisted of a series of elements. For instance, the fact that debtors defaulted on their obligations meant that other bank customers lost their trust in their banks, causing bank runs – situations in which too many depositors attempt to take back their deposits simultaneously, depleting the financial resources of banks (Shin 103); clearly, the number of new deposits also dropped. Such a situation may often result in the bankruptcy of banks and financial institutions. In turn, to prevent the bankruptcy or financial contagion, the state provided financial support for the banks (a bailout), drawing on the resources of the national government (The Economist n.pag.). The rough situation in the banks prevented the latter from giving loans to clients, transmitting the crisis to other sectors of the economy – those in which the customers would not need to use the money they borrowed from banks to purchase. Overall Effect of GFC on Different Sectors of Economy The fact that the capability of the banks to give loans to their customer drops dramatically means that customers suffer from reduced capability to buy goods and services. The resulting drop in purchases hits many other sectors of the market; companies that are unable to sell their products are forced to decrease the amount of produced goods; this increases the rates of unemployment (Karanikolos et al. 1323-1324), and the dearth of jobs further reduces the ability of the population to buy goods and services – this time, not only in those sectors in which bank loans are usually used, but also in those in which clients use non-borrowed money. (Of course, the lack of sales and drops in production forces firms to buy less as well.) Therefore, the financial crisis affects multiple sectors of the economy inside a single country by reducing the purchasing capabilities of the population (products and services market), decreasing sales and profits of companies, and increasing the rates of unemployment (labor market), further lowering the population’s and companies’ ability to buy. Get your 100% original paper on any topic done in as little as 3 hours Learn More Channels through Which GFC Was Transmitted Globally The main channel through which the financial crisis was spread globally was also the housing and mortgage sectors of the market. In fact, it is stated that “many mortgage-backed securities were sold in Europe” (Karanikolos et al. 1323), which caused the financial crisis to spread to Europe as well. It is noted that numerous banks from Europe also invested large amounts of finances in sub-prime house loans in the United States, which meant that the crisis in the U.S. also had a significant effect on these banks (Business Think n.pag.). The spread of GFC to Asia occurred rapidly, via trade channels. The exports from Asian countries contracted quickly, which led to the inability of companies to sell their products, resulting in unemployment, and, consequently, in the inability of the population to purchase. However, Asia suffered relatively little from financial problems (Heng 269). Different Sectors’ Integration across Countries, and Key Financial Indicators of the Crisis All the sectors of economies were integrated into the problems caused by GFC. The crisis reduced the capability of banks to give loans, significantly decreasing the ability of customers (both private persons and companies) to purchase goods and services. This resulted in a major decrease in production virtually in all the sectors of the economies. For instance, GDP in the U.S. and the E.U. (28 countries) also dropped during GFC, which can be seen from the chart below; the chart demonstrates the percentage of change in quarterly GDP compared to GDP of the same quarter in the previous year (OECD, “Quarterly GDP” n.pag.): Quarterly GDP It can be seen that the first drop in the U.S. GDP compared to the GDP of the same period in the previous year occurred in the third quarter of 2008; the line goes below the zero. This followed some of the first bank bankruptcies of 2008. It is also seen that GDP fell even further during the following periods; it only began growing again in the first quarter of 2010 in the U.S. The data from the E.U. is similar during GFC. Other macroeconomic indicators show similar patterns prior to, during, and after GFC. For instance, the imports (in million U.S. dollars) were as follows (OECD, “Trade in Goods and Services” n.pag.): Trade in Goods and Services. The exports (in million U.S. dollars) were (OECD, “Trade in Goods and Services” n.pag.): Trade in Goods and Services. Thus, all the countries taken as examples experienced decreases in both exports and imports; one of the main reasons for this is that the decreased capability of consumers to buy goods led to drops in imports at home, and, respectively to drops in exports in exporting countries, in which a similar situation led to drops in imports, etc. We will write a custom Essay on The Global Financial Crisis and Its Impacts specifically for you! Get your first paper with 15% OFF Learn More The inflation rates as measured by consumer price index were as follows (OECD, “Inflation (CPI)” n. pag.): Inflation (CPI) All the currencies given as examples experienced high inflation rates during approximately 2007-2008. It might be possible to state that this resulted from the attempts of the governments to bailout banks. The inflation rates started going down at the end of 2008 – beginning of 2009. The total exchange rates (national currency / U.S. dollar) were as follows for GBP and EUR (quarterly data not available) (OECD, “Exchange Rates” n. pag.): Exchange Rates. The exchange rates did not change considerably, probably because the crisis was in effect in all the countries using the currencies the exchange rates for which are shown. Finally, long-term total interest rates per year were as follows (OECD, “Long-Term Interest Rates” n.pag.): Long-Term Interest Rates. Thus, prior to the crisis, the interest rates in the U.S. were going down most of the time, apart from a few rises; they were always lower than at the beginning of 2000. The lower interest rates stimulated taking house loans, leading to the formation of the financial bubble. Also, during a recession, buyers will attempt to preserve money and not borrow or invest it, which is why interest rates did not grow considerably during the crisis. The Global Financial Crisis and the Starbucks Company The Impact of GFC on Starbucks Starbucks Corporation is an American company owning a chain of coffee shops and operating at home and worldwide. As other companies, it was also affected by GFC. It is stated that this company’s products are of high quality, but their cost is higher than of those offered by other coffee companies (Husain, Khan, and Mirza n.pag.). Therefore, clients, who suffered from the crisis, opted for other shops where coffee was cheaper. In 2008, Starbucks had to close approximately 600 shops; in 2009, another 300 shops were closed, and 6,700 workers were subjected to compulsory redundancy (Husain, Khan, and Mirza n.pag.). The incomes of the company plummeted down dramatically; the graph below shows the net incomes of Starbucks for trailing twelve months from the end of the indicated month over the period 2004-2016 (“Starbucks Net Income (TTM)” n.pag.): Not sure if you can write a paper on The Global Financial Crisis and Its Impacts by yourself? We can help you for only $16.05 $11/page Learn More Starbucks Net Income (TTM). It is also possible to assess the company’s return on investment (ROA) during the crisis. As it can be seen, it also indicates that the company suffered a major decrease in its profits (“Starbucks Return on Assets (TTM)” n.pag.): Starbucks Return on Assets (TTM). Key Indicators Explaining the Effect of GFC on Starbucks in the U.S. and Worldwide The effect of GFC on the profits of Starbucks in the U.S. can be explained by using GDP. The rate of GDP growth in the U.S. started going down in the first quarter of 2008, and became negative in the third quarter of 2008 (in comparison to the respective period of the previous year; see the graph above). It is easy to see that the net income of Starbucks also began declining in 2008; the graph provided above depicts the net income worldwide, including the net income gained in the U.S., which is the larger part of the total net income of the company. It was explained above that the clients of the company had to purchase their coffee in cheaper shops. The inflation rate in the U.S. can also explain the decrease in Starbucks’ profits; the expenses of the business grew, but it was unable to considerably increase the price of its products (coffee) due to the lack of buyers. However, the decrease in the net income in foreign countries can be associated with such an indicator as international trade flow. Due to low international trade flow, incomes of a business may go down especially in the situation when it relies on export or imported goods, whereas Starbucks had to import coffee to most countries in which it was operating. Critical Evaluation of the Steps Taken by Starbucks to Avoid or Address the Effects of GFC Starbucks took a number of steps to overcome GFC. For instance, the enterprise made a significant effort aimed at improving the operational aspect of the business; also, the structure of the organization was improved, leading to a decrease of $580,000,000 in the cost of the company (Starbucks Corporation 3). However, the main changes were related to enhancing the client’s experience in company’s shops (Starbucks Corporation 3). The business focused on making its stores more attractive to the customers; in particular, clients were asked to provide their opinions about the company, and recommendations for improving customers’ experience (Husain, Khan, and Mirza n.pag.). Even though the profits of the company dropped significantly during GFC, the graphs above show that Starbucks managed to achieve pre-crisis levels of (nominal) net income as of March 31, 2010, and then continue to grow further. Therefore, that the enterprise adopted an efficacious strategy to deal with the consequences of the crisis: apart from taking reactive measures to recover from GFC, it also made some proactive moves to improve the quality of the offered service, which allowed the business to survive the crisis and continue to develop. Data Sources Defining the Data Sources The data on key financial indicators was gathered from the website of OECD (the Organization for Economic Co-operation and Development). Simultaneously, the data about Starbucks was taken from such financial websites as, as well as from the official annual 2009 fiscal year report prepared by the company. Converting Nominal Data into Real Data Using CPI The consumer price index (CPI) can be used to account for the inflation when comparing financial data pertaining to different periods. However, this is required only for data which does not take the inflation into account. To find the current price of a good expressed in base-year dollars, it is needed to multiply the current year price by the base-year CPI and then divide it by the current year CPI: Current item price in base year dollars = current year price * (base year CPI / current year CPI). Evaluating the Effect of the Financial Shock on the Relevant Economic Indicators As was already stressed, GDP in the U.S. continuously grew prior to the crisis; during the crisis, it experienced negative growth; after the crisis, the growth became positive again (see the graph above). In the E.U. the negative growth of GDP was greater than that in the U.S. The inflation rates were high during the crisis, much higher than before it, but after the crisis, a rather significant deflation followed briefly. See the graph of CPI above. The international trade flow (both exports and imports) decreased during 2008-2009, but returned to and even exceeded the pre-crisis levels in 2010-2011 in most countries (OECD, “Trade in Goods and Services” n.pag.). Evaluation Theories Explaining the Causes of Financial Crises According to Detzer and Herr, there are three main types of relevant theories explaining financial crises: neoclassical, Keynesian, and those which only focus on the isolated elaboration of financial crises, such as behavioral finance (1-3). Neoclassical approach The financial sphere is differentiated from the “real” sphere; it is stated that the two can sometimes progress independently of one another. Once the equilibrium between the spheres is broken, the economy does not tend towards it, and it can only be restored by the intervention of bodies such as the central bank. The capitalist economy, however, develops as a series of non-ordered expansions and contractions, which always leads to instability and increases the gap between the financial and the “real” sphere, eventually triggering a crisis (Detzer and Herr 3). Keynesian theories (without the “real-monetary” dichotomy) In these theories, the named dichotomy is not postulated; instead, a model of a monetary production economy, inside which the crises develop, is offered. Minsky’s theory, for instance, is based on two assumptions: that a) there are different financing regimes in a capitalist economy, and under some of these regimes, the economy is stable, but under others, it is not; b) when an economy is prospering, it might move from a stable to an unstable regime. Thus, financial instability originates in the basic characteristics of capitalist systems (Detzer and Herr 14-15). Behavioral finance This theory tries to elaborate the economic steps taken by people by utilizing knowledge obtained from behavioral and cognitive studies. It is stated that emotions and feelings of individuals have an impact on the market; cognitive mistakes and biases of persons or groups prevent markets from being efficient. In efficient markets, agents are supposed to employ all the data about values of assets which can be obtained; however, in the real markets, agents assess the value of companies using the assumptions about their future cash flows. All in all, miscalculations may lead to such phenomena as financial bubbles, which may burst; a bursting bubble is a way in which a financial crisis may start (Detzer and Herr 21-25). Possible Resolutions for a Firm and their Justification According to the listed theories, crises are results of either the inherent traits of capitalist economies or the cognitive mistakes or biases of individuals. A single firm cannot change these factors. However, if behavioral and cognitive studies are taken into account, it is possible to offer certain recommendations for recovery. A company needs to take into account not only financial aspects of the crisis and attempt to recover from losses but also try to grow by implementing new steps in the market. In fact, it is stated that such an approach allowed Starbucks to survive the crisis and flourish after it (Husain, Khan, and Mirza n.pag.). This approach is also supported by studies. For instance, Mihai-Yiannaki and Savvides state that implementing creativity in business to gain new customers may be crucial for an enterprise attempting to overcome the fallout of a financial crisis (188). From research, it also follows that a flexible approach to employees may allow for increasing their efficiency, thus saving resources for the company and allowing for a higher quality of service (Ayudhya, Prouska, and Lewis 2-3). Conclusion Therefore, GFC occurred due to the burst of a financial bubble resulting from the excessive quantity of subprime mortgages in the U.S., and spread rapidly to other sectors of the American economy, as well as around the whole world. The economic indicators such as GDP or international trade flow confirmed that the crisis was global. Starbucks, a large American coffee company, was able to survive and to become stronger during the crisis because it was focused not only on crisis prevention but also on further development. It is recommended to the company not to stop the attempts to serve the customers well; in fact, it might be advised to introduce creativity techniques among employees and to adopt a flexible approach towards them in order to increase their efficiency at work. Works Cited Ayudhya, Uracha Chatrakul Na, Rea Prouska, and Suzan Lewis. “Work-life balance can benefit business during financial crisis and austerity.” Human Resource Management International Digest 23.5: 25-28. Print. Business Think. Contagion Effect: How Financial Crises Spread Across Borders. 2015. Web. Detzer, Daniel, and Hansjörg Herr. Theories of Financial Crises – An Overview. 2014. Web. Heng, Swee Keat. The Global Financial Crisis: Impact on Asia and Policy Challenges Ahead. n.d. Web. Husain, Shezray, Feroz Khan, and Waqas Mirza. Brewing Innovation. 2014. Web. Karanikolos, Marina, Philipa Mladovsky, Jonathan Cylus, Sarah Thomson, Sanjay Basu, David Stuckler, Johan P. Mackenbach, and Martin McKee. “Financial Crisis, Austerity, and Health in Europe.” The Lancet 381.9874 (2013): 1323-1331. Print. Mihai-Yiannaki, Simona, and Savvas Savvides. “Creativity in business schools – post financial crisis implications.” International Journal of Organizational Analysis 20.2 (2012): 187-202. Print. OECD. Exchange Rates. 2016. Web. OECD. Inflation (CPI). 2016. Web. OECD. Long-Term Interest Rates. 2016. Web. OECD. Quarterly GDP (indicator). 2016. Web. OECD. Trade in Goods and Services. 2016. Web. Savona, Paolo, John J. Kirton, and Chiara Oldani. Global Financial Crisis: Global Impact and Solutions. Burlington, VT: Ashgate Publishing Company, 2011. Print. Shin, Hyun Song. “Reflections on Northern Rock: The Bank Run that Heralded the Global Financial Crisis.” The Journal of Economic Perspectives 23.1 (2009): 101-119. Print. Starbucks Corporation. Fiscal 2009 Annual Report. 2009. Web. Starbucks Net Income (TTM). 2016. Web. Starbucks Return on Assets (TTM). 2016. Web. The Economist. Crash Course. 2013. Web.

MGT 402 SEU Capital Search to Finance an Innovative New Product Case Study

MGT 402 SEU Capital Search to Finance an Innovative New Product Case Study.

Case study is “How can a small company find capital to finance an innovative new product?”
Textbook: (Scarborough, N.M. & Cornwall, J. (2012). Effective small business management: An Entrepreneurial approach (10th ed.). Upper Saddle River, NJ: Prentice Hall. 
* Based on your understanding of the case and concepts, answer the following question in 250-350 words each. 
Assignment Questions:
1. Experts say that entrepreneurs who need between $100,000 and $3 million often face the greatest obstacles when raising capital for their businesses. Why? (250 – 350 words) 
2. How should Kevin Semcken raise the $1.5 million in capital that Able Planet needs? Be sure to consider sources of both debt and equity financing. (250 – 350 words) 
 3. Write a short memo to Kevin Semcken explaining what he should do before he approaches potential lenders and investors to maximize his chances of getting the capital that Able Planet needs. ( 250-350 )
References requird 
MGT 402 SEU Capital Search to Finance an Innovative New Product Case Study

Overview of John Teeling Talk on Running Your Own Business

assignment writer Overview of John Teeling Talk on Running Your Own Business. 1.1 The Man Dr John Teeling holds degrees in economics and business from UCD and is known as a ‘serial entrepreneur’, having established several companies in the oil, gas and resource sectors. He is best known as the founder of Cooley Distillery which he started in the late 80’s, and subsequently sold to Jim Beam for over £70 million in 2011. He is the founder and chairman of several listed companies including Connemara Mining, Petrel Resources, Minco, African Gold, Persian Gold, West African Diamonds and Botswana. He has the set up more listed companies than any other Irishman, he prefers London listings over Dublin, because it is cheaper to list there. He has had more than one career over his lifetime: an academic, an explorer and whiskey distiller. 1.2 The Talk He spoke at length about what it takes to run your own business. His theory is that it takes vision, resources (human, financial and technical), the ability to handle uncertainty (sleepless nights too) and the energy, determination and persistence to keep going. His view is that there is no shortage of skilled people and in his experience, he has never struggled to find the right person to fulfil a role, you have to look for them. Financial resources predominantly come four sources: friends, family, fools and free money from the state. Technological resources can be bought, leased or developed in house by employing people with the required skills. He prefers the term uncertainty to risk – risk can be measured. In dealing with uncertainty you will have a lot of sleepless nights. Energy and persistence are key to getting your business off the ground and encouraging others to join you and stay with you in during the tough times. He spoke about length about setting up the Cooley Distillery and his absorption with the dream. How many times the dream almost ended over eleven years it took for the distillery to make a profit. A couple of remark he made struck a chord with me, “friends and fools continued to invest” and “the people of Cooley worked like dogs” and he credits them with much of the success of the business. This got me thinking about how men like John Teeling persist in the face of adversity for over a decade. I have chosen to reflect on the John Teeling talk because it was clear he was a persistent man, especially when setting up the distillery. Passion appears easy for an entrepreneur (it’s their vision), but how do they keep that spark alive and persist with their vision as the company grows and use it to motivate others like investors and employees. This is linked to my PDP and future career plans in that as a management consultant the ability to demonstrate persistence, in addition to having the ability to understand the entrepreneurial mindset as I suspect that many of my future clients will be entrepreneurs. Mr Teeling, made it clear that energy and persistence are key to getting your business off the ground and encouraging others to join you and stay with you during the tough times. He spoke about length about the numerous times the dream almost ended over eleven years it took for the distillery to make a profit. Wu et al., (2007) define entrepreneurial persistence as the ability to maintain the motivation to continue acting under challenging conditions. Many people view the ability to start your own business as an aspiration goal that can yield favourable rewards. This decision is full of uncertainties (Burke and Miller, 1999), and entrepreneurs must be willing to assume personal, social, and psychological risks (Lumpkin and Dess, 1996). In addition, entrepreneurs need to be persistent when they encounter difficulties and uncertainties (Hatch, 2000). Holland (2011) says that the decision to start a business is typically, but not always, made under conditions that are favourable to new venture creation. Whilst, persistence is a decision that must be made repeatedly over time. Persistence can stem from the original commitment to start the business and individuals can feel a sense of obligation to maintain this commitment in the face of adversity. Entrepreneurs as a group tend to want to be their own bosses, this can enable them to achieve more. This is supported by McClelland (1961) who describes the entrepreneur as an individual primarily motivated by a tremendous need for achievement and strong urge to build. Persistence is something that is innate within individuals. Alderfer’s, (1969) ERG theory can be used to explain this innate characteristic within entrepreneurs. His theory is that, needs and values are individualistic, and our innate human needs and ultimate desire to meet these needs is what drives our behaviour. Entrepreneurial persistence is of the utmost importance, this is supported by Timmons and Spinelli (2009) who say that tenacious entrepreneurs have a greater chance of success. Persistence can result in positive or negative outcomes. Resilient entrepreneurs have the ability to adapt and emerge from an adversarial situation strengthened and more resourceful (Holland and Shepherd, 2013). On the other hand, entrepreneurs who maintain their commitment to a failing course of action end up investing in wasteful projects (DeTienne et al., 2008). Persistence may result in entrepreneurial success, it can be costly to the individual and/or the economy as the resources allocated to unsuccessful ventures could have been more efficiently used elsewhere (McGrath, 1999). Inevitably, all entrepreneurs will encounter problems like losing a big customer or contract. Key members of staff will leave the company or regulations will change, adding to business complexity. Success depends upon them being able to persist through difficult times. Nothing can take the place of persistence and it is difficult to succeed without it. “Energy and persistence conquer all things.” – Benjamin Franklin The management consultant’s role provides considerable job variety. Pauwels Consulting, a Belgian consulting firm employing in excess of 300 management consultants, includes persistence as one of the eight characteristics of great consultants. They say that best consultants don’t give up, accept friction, unforeseen circumstances, and negative feedback. They use them as learning experiences, analyse them to ensure they don’t happen again and move on (Pauwels Consulting, 2014). Management consultants must demonstrate charismatic/transformational leadership behaviour through persistence with business goals. Kanungo (1988) believed that goals set by managers for employees can promote personal efficacy among employees, and this can lead to persistence in meeting those objectives. Persistence is frequently mentioned as one of the most important personality traits in successful people. It is rare for success to come without a great deal of effort. Often the only difference between those who succeed and those who don’t is the ability to keep going. Highly persistent people are described as determined, conscientious, and ambitious. Their ability to persevere and work hard means they are often overachievers in academic and professional roles. They also have a propensity to be perfectionists, and need to be the best at whatever they do (Fleet and Hewitt, 2002; cited in Battersby, 2004). People who are highly persistent are more likely to have anxiety disorders. High persistence increases both positive and negative emotions in most people, however, high persistence reduces negative emotions and increases positive emotions if a person is easy-going (Cloninger et al., 2012). I consider myself to be persistent and have demonstrated high levels of persistence, particularly over the last number of years. I have set myself clear goals and used them to motivate and drive myself. The achievement of these goals has at times become the sole focus of my life and I have devoted vast amounts of time and energy in attaining my goals. I am also very disciplined and I’m also aware that the results of my current efforts may not be seen for a long time, however, I strongly believe that everything I do today will have a positive impact on the outcome. I come from an entrepreneurial background and was brought up working in the family businesses. I witnessed my parent’s persistence in attempting to keep the businesses going through the hard times and I feel this has been to my benefit. I also agree with Cloninger’s (2012) assessment that highly persistent people are more likely to have anxiety disorders and at times I have allowed my pursuit to be the best affect me in negative ways. Persistence is in my experience very much the double edged sword. I constantly strive to perform to the best of my ability and will persist with a task to achieve excellence. At times, this borders on perfectionism and this breeds anxiety. I also have a very vocal inner critic and at times I let her overtake my thoughts and this leads to further anxiety. As previously mentioned I use goal setting to help me achieve my objectives. I also try to set myself challenging yet realistic goals, however, even small setbacks like not maintaining a pre-planned schedule can cause frustration. Bailey (2008) offers the following to help people reduce perfectionism tendencies: Set realistic goals – require hard work but be unattainable. Allow for mistakes – viewed as learning experiences rather than as failures. Listen to how you talk to yourself – change your self-talk to positive statements, rather than negative. Accept that the pursuit of perfection can cost you – relationships, as well as self-esteem. Limit the time you spend on projects – give yourself a time limit and accept the project at the end of that time so that you can move on. I am a born perfectionist. I like being efficient, and I get pleasure out of knowing I have tried my hardest to get the results, however, this is an aspect of my personality that I will have to learn to manage, particularly in my future career in dealing with colleagues and clients. References Alderfer, C. (1969), “An empirical test of a new theory of human needs”, Organizational Behavior and Human Performance, Vol. 4, pp. 142‐75, Business Source Complete, EBSCOhost, viewed 24 January 2017. Bailey, E. (2008) The pursuit of perfection. Available at: (Accessed: 26 January 2017). Battersby, L 2004, ‘G. L. Flett and P. L. Hewitt (Eds.) (2002) Perfectionism. Theory, Research and Treatment . American Psychological Association: Washington, DC, pp. 433, ISBN 1557988420’, European Eating Disorders Review, 12, 1, p. 68, Academic Search Complete, EBSCOhost, viewed 25 January 2017. Burke, L.A. and Miller, M.K. (1999) ‘Taking the mystery out of intuitive decision making’, The Academy of Management Executive (1993-2005), 13, pp. 91-99. doi: 10.2307/4165589. Cloninger, R.C., Zohar, A.H., Hirschmann, S. and Dahan, D. (2012) ‘The psychological costs and benefits of being highly persistent: Personality profiles distinguish mood disorders from anxiety disorders’, Journal of Affective Disorders, 136(3), pp. 758-766. doi: 10.1016/j.jad.2011.09.046. DeTienne, D.R., Shepherd, D.A. and De Castro, J.O. (2008) ‘The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions for under-performing firms’, Journal of Business Venturing, 23(5), pp. 528-546. doi: 10.1016/j.jbusvent.2007.09.004. Gunther McGrath, R (1999), ‘FALLING FORWARD: REAL OPTIONS REASONING AND ENTREPRENEURIAL FAILURE’, Academy Of Management Review, 24, 1, pp. 13-30, Business Source Complete, EBSCOhost, viewed 25 January 2017. Hatch, J. (2000) ‘WHAT IS THE STUFF OF AN ENTREPRENEUR?’, Ivey Business Journal, 65(2), p. 68. Holland, D,Overview of John Teeling Talk on Running Your Own Business

Suffolk University Financial Payment Industry Research

Suffolk University Financial Payment Industry Research.

Analyze the industry dynamics and provide a detailed description of the competitive
forces inside the industry. Use Porter’s Five Forces model to examine the competitive
 Identify the strategic groups in the industry based on relevant criteria you will choose.  Your aim should be to answer the following two questions in detail: “How attractive is
this industry at the current time; that is, is it possible for incumbent organizations to
sustain competitive advantage in this industry? Given the observed trends, what is your
assessment of industry attractiveness over the longer term (5 to 10 years from now)?” -You should research and read external reports, analysis, news, and other related material
and cite them properly for all the sections of this report. ****This is about the financial payment industry and the companies focused on are Visa and Square Inc.-This should be 3 pages long, double spaced.
Suffolk University Financial Payment Industry Research

Views on Industrialization of A.Carnegie and H.George Essay

Views on Industrialization of A.Carnegie and H.George Essay. Industrialization in the United States has brought about a significant change in the lives of individuals and the public. The separation between classes became even more obvious and there have been numerous individuals who proposed reasons for this outcome. Andrew Carnegie and Henry George were both very influential in America but had opposing views regarding industrialization and wealth. Andrew Carnegie was born in Scotland and moved to the United States with his parents in 1948. In 1850, he started working at the Telegraph and this became the key point in his later success. The work enabled him to make connections with influential businessmen and get to know the industry (Edge 25). From the earliest days at work he has proven to be extremely hard working and skillful. He would be able to differentiate different sounds of the telegraph which gave him the ability to work faster and more efficiently. He has also shown to have great organizational skills. His imagination filled him with ideas that proved to be very useful later in life. His first business act was in 1855, when he invested 500 dollars into “Adams Express”. This was made possible by his employer Edgar Thompson who was a great supporter of Andrew Carnegie (Edge 58). It was clearly the first step towards business life and generally, this can be seen as a stepping stone for any individual. At this young age, a person does not have great opportunities to become a large business man and there is no way of stealing or getting money in any other illegal way. What made this possible were his hard work, determination and connections. It could be said that he happened to be in the right place at the right time. He could not have planned to get involved with the telegraph, just as he had no way of knowing that this would greatly help him in life, and that he would make friends with Edgar Thomas who had such an influence on his later development in business. While his capital was growing through the investment, he has been continuing work and proving to be a very able worker. This gave way to his movement through to the higher positions and was the result of his success. During the Civil War he had many opportunities to get involved with the business in steel and again, his connections have proven to be very useful. But he was not only involved in business, he was also a wise man and very much interested in sciences and education in general. His early involvement in the business life of influential people allowed him to get to know the ways of the industry and trade and this was his strong point. When he became the owner of the steel industry, his capital was growing very quickly. But even though he was very wealthy, the money did not corrupt him and did not ruin his good-hearted nature. His major belief was that wealth was evil if it was idolized and used for personal goals. His motto was to use the money made to better society and help others develop their own skills and abilities. There were very many donations that he has made, as well as supported many libraries, universities and social benefit institutions. His life is an example of how people should behave if they are given the opportunity to do well. The fact that he was smart, hard-working and determined was given to him by nature. He developed his skills and this was his great characteristic. But also, he was lucky and the environment that he was in helped him prosper. He was not greedy and had no problem giving away the money to those who needed it. His life started in poverty but he was given the chance to turn it around. Henry George was born in the United States and was also a very successful and skilful individual. His family was poor and often had to struggle. He dropped out of school at age fourteen and when he was fifteen, he went to sea on a boat called “Hindoo”. After 14 months of sailing he came back to California and started working for a typesetter. His was an apprentice and would not receive too great of a salary. He got married and had four children and unfortunately, his family also had to deal with poverty. In 1865, he started working for a newspaper. At first he was a printer but later, he got involved in writing and eventually became an editor (George 45). He continued working in the newspaper and this was the changing time in his life. It is interesting to see that both Andrew Carnegie and Henry George found their calling and talents through direct involvement in their work. Henry George found himself in writing and public speaking and this was exactly what helped himself and his family to get out of poverty. He became very influential after his book “Progress and Poverty” came out (George 316). All his thoughts were directed towards socialism and the division between classes. His major points were that those with power and land ownership created even more wealth for themselves while the working class had to struggle with poor work conditions, minimal wage and inability to progress in life. His point that land ownership is unfair is very valid because how can something that was not created by humans become owned by them? The fact that someone has come to a certain place and proclaimed that the surrounding area and land belong to them, should not mean that they own it. Everyone deserves to have an equal amount of territory to use for their development and work. Henry George was a great advocate for labor safety because many people lost their lives due to extremely bad conditions at their workplace. His works as a writer and him being a proponent of human rights have become a large part of the movement for better workplace safety and poverty cessation. He considered all wealthy people above the law, believing that they have gained their riches by corruption and illegal activities (George 450). It is true that many wealthy individuals in the past and present have broken the law to either start out their business or continue its advancement. But clearly, Andrew Carnegie is an example that relates to those who have used legitimate ways to rich success. Both Henry George and Andrew Carnegie had a great influence on society. It is obvious that people must use their skills to better the world around them and help those with fewer opportunities and ability to have a better life. It is very important to not become the victim of extreme beliefs and find a balance between good and bad. Works Cited George, Henry. Life of Henry George. New York, United States: Cosimo, Inc., 2006. Print. Edge, Laura. Andrew Carnegie. Minneapolis, United States: Twenty-First Century Books, 2004. Print. Views on Industrialization of A.Carnegie and H.George Essay