Business Ethics and Corporate Governance in Lic of India

OVERVIEW INSURANCE- AN INTRODUCTION Meaning: Insurance may be described as a social device to ensure protection of economic value of life and other assets. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these, may be insured against at a premium commensurate with the risk involved. Thus, collective bearing of risk is insurance. Insurance = Collective Bearing of Risks| Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. The term â€Å"risk† is used to describe the possibility of adverse results flowing from any occurrence or the accidental happenings, which produce a monetary loss. Insurance is a pool in which a large number of people exposed to a similar risk make contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good. The sharing of risk among large groups of people is the basis of insurance. Related article: Disadvantages of Ethics in Business The losses of an individual are distributed over a group of individuals. Insurance is nothing but a system of spreading the risk of one onto the shoulders of many. While it becomes somewhat impossible for a man to bear by himself 100% loss to his own property or interest arising out of an unforeseen contingency, Insurance is a method or process which distributes the burden of the loss on a number of persons within the group formed for this particular purpose. Definitions: Fundamental Definition In the words of D. S. Hansell, â€Å"Insurance accumulates contributions of all parties participating in the scheme. Contractual Definition In the words of Justice Tindall, â€Å"Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring the risk of paying a large sum upon a given contingency†. Working of Insurance Insurance Industry in India : The origin of life insurance in India can be traced back to 1818 with the establishm ent of the Oriental Life Insurance Company in Calcutta. It was conceived as a means to provide for English Widows. In those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered riskier for coverage. The Bombay Mutual Life Insurance Society that started its business in 1870 was the first company to charge same premium for both Indian and non-Indian lives. In 1912, insurance regulation formally began with the passing of Life Insurance Companies Act and the Provident Fund Act. By 1938, there were 176 insurance companies in India. But a number of frauds during 1920s and 1930s tainted the image of insurance industry in India. In 1938, the first comprehensive legislation regarding insurance was introduced with the passing of Insurance Act of 1938 that provided strict State Control over insurance business. Insurance sector in India grew at a faster pace after independence. In 1956, Government of India brought together 245 Indian and foreign insurers and provident societies under one nationalized monopoly corporation and formed Life Insurance Corporation (LIC) by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore. Before 1956, insurance was private with minimal government intervention. In 1956, life insurance was nationalized and a monopoly was created. In 1972, general insurance was nationalized as well. But, unlike life insurance, a different structure was created for the industry. India had the nineteenth largest insurance market in the world in 2003. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. Insurance in India has gone through two radical transformations. One holding company was formed with four subsidiaries. As a part of the general opening up of the economy after 1992, a Government appointed committee recommended that private companies should be allowed to operate. It took six years to implement the recommendation. Private sector was allowed into insurance business in 2000. However, foreign ownership was restricted. No more than 26% of any company can be foreign-owned. A totally regulation free regime ended in 1912 with the introduction of regulation of life insurance. A comprehensive regulatory scheme came into place in 1938. This was disabled through nationalization in what follows; we examine the insurance industry in India through different regulatory regimes. But, the Insurance Act of 1938 became relevant again in 2000 with deregulation. With a strong hint of sustained growth of the economy in the recent past, the Indian market is likely to grow substantially over the next few decades. The rest of the chapter is organized as follows. First, we study the evolution of insurance business before nationalization. This is important because the denationalized structure brought back to play important legal rules from 1938. Next we analyze the nationalized era separately for life and property casualty business as they were not nationalized simultaneously. Much of post-independence history of insurance in India was the history of nationalized insurance. In the following section, we examine the new legal structure introduced after the industry was denationalized in 2000. In the penultimate section, we examine the current state of play and projected future of the industry. Important Milestones in the Life insurance business in India: * 1870: Bombay Mutual life assurance society is the first Indian owned life insurer. * 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. * 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. * 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India. * 1997: Insurance regulator IRDA set up. 2000: IRDA starts giving licenses to private insurers like Kotak Life Insurance, ICICI Prudential and HDFC Standard Life insurance first private insurers to sell a policy. * 2001: Royal Sundaram Alliance first non life insurer to sell a policy. * 2002: Banks were allowed to sell insurance plans. As Third Party Administrations (TPAs) enter the scene, insurers start setting non-life claims in the cashless mode. * 2004-05: The Government proposed for increasing the foreign equity stake to 49%. * 2007: First Online Insurance portal, set up by an Indian Insurance Broker, Bonsai Insurance Broking Pvt. Ltd. LIFE INSURANCE CORPORATION ACT, 1956 An act to provide for the nationalization of life insurance business in India by transferring all such business to a Corporation established for the purpose and to provide for the regulation and control of the business of the Corporation and for matters connected therewith or incidental thereto. BUSINESS ETHICS Ethics are  moral guidelines  which govern  good behavior. So behaving ethically is  doing what is morally right. Behaving ethically in business is widely regarded as good business practice. To provide you with a couple of quotes: Ethical principles and standards in business: * Define acceptable conduct in business * Should underpin how management make decisions An important distinction to remember is that behaving ethically is not quite the same thing as behaving lawfully: * Ethics  are about what is right and what is wrong * Law  is about what is lawful and what is unlawful You will probably note the link between business ethics and corporate social responsibility (CSR). The two concepts are closely linked: * A socially responsible firm should be an ethical firm * An ethical firm should be socially responsible However there is also a distinction between the two: * CSR is about responsibility to all stakeholders and not just shareholders * Ethics is about  morally correct behavior How do businesses ensure that its directors, managers and employees act ethically? A common approach is to implement a  code of practice. Ethical codes are increasingly popular – particularly with larger businesses and cover areas such as: * Corporate social responsibility * Dealings with customers and supply chain * Environmental policy & actions * Rules for personal and corporate integrity NEED OR IMPORTANCE OF BUSINESS ETHICS These 12 points below discuss the need, importance of business ethics: 1. Stop business malpractices: Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of duplicate and harmful products, hoarding etc. These malpractices are harmful to the consumers. Business ethics help to stop these business malpractices. 2. Improve customers’ confidence: Business ethics are needed to improve the customers’ confidence about the quantity, quality, price, etc of the products. The customers have more trust and confidence in the businessmen who follow ethical rules. 3. Survival of business: Business ethics are mandatory for the survival of the business. The businessmen who do not follow it will have short term success, but they will fail in the long run. This is because they can cheat a consumer only once. After that, the consumer will not buy products from that businessman. He will also tell others not to buy from that businessman. So this will defame his image and provoke a negative publicity. This will result in the failure of the business. Therefore, if the businessmen do not follow ethical rules, he will fail in the market. 4. Safeguarding consumers’ rights: The consumer has many rights such as right to health and safety, right to be informed, right to choose, right to be heard, right to redress, etc. But many businessmen do not respect and protect these rights. Business ethics are must to safeguard these rights of the consumers. 5. Protecting employees and shareholders: Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, etc. It protects them from exploitation through unfair trade practices. . Develops good relations: Business ethics are important to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and services at low prices to the society. It will also result in profits for the businessmen thereby resulting in growth of economy. 7. Creates good image: Business ethics create a good image for the business and businessmen. If the businessmen follow all ethical rules, then they will be fully accepted and not criticized by the society. The society will always support those businessmen who follow this necessary code of conduct. 8. Smooth functioning: If the business follows all the business ethics, then the employees, shareholders, consumers, dealers and suppliers will all be happy. So they will give full cooperation to the business. This will result in the smooth functioning of the business. 9. Consumer movement: Business ethics are gaining importance because of the growth of the consumer movement. Today the consumers are aware of their rights. Now they are more organized and cannot be cheated easily. They take actions against those businessmen who indulge in bad business practices. They boycott poor quality, harmful, high priced and duplicate goods. Therefore, the only way to survive in business is to be honest and fair. 10. Consumer satisfaction: Today, consumer is the king of the market. Any business simply cannot survive without the consumers. Therefore, the main aim or objective is consumer satisfaction. If the consumer is not satisfied, then there will be no sales and thus no profits too. Consumer will be satisfied only if the business follows all the business ethics, and hence are highly needed. 11. Importance of labour: Labour i. e. employees or workers play a very crucial role in the success of a business. Therefore, business must use business ethics while dealing the employees. The business must give them proper wages and salaries and provide them with better working conditions. There must be good relations between employer and employees. The employees must also be given proper welfare facilities. 12. Healthy competition: The business must use business ethics while dealing with the competitors. They must have healthy competition with the competitors. They must not do cut throat competition. Similarly, they must give equal opportunities to small-scale business. They must avoid monopoly. This is because monopoly is harmful for the consumers. CORPORATE GOVERNANCE Good corporate governance contributes to a company’s competitiveness and reputation, Corporate governance  is â€Å"the system by which companies are directed and controlled†. It involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders  and other  stakeholders, and the goals for which the corporation is governed. In contemporary business corporations, the main external stakeholder groups are shareholders, debt holders, trade  creditors, uppliers, customers and communities affected by the corporation's activities. . Internal stakeholders are the  board of directors,  executives, and other employees. Much of the contemporary interest in corporate governance is concerned with mitigation of the conflicts of interests between stakeholders. Ways of mitigating or preventing these conflicts of interests incl ude the processes, customs, policies, laws, and institutions which have impact on the way a company is controlled. An important theme of corporate governance is the nature and extent of  accountability  of people in the  business. IMPORTANCE OF CORPORATE GOVERNANCE The need, significance or importance of corporate governance is listed below: 1. Changing Ownership Structure: In recent years, the ownership structure of companies has changed a lot. Public financial institutions, mutual funds, etc are the single largest shareholder in most of the large companies. So, they have effective control on the management of the companies. They force the companies to use corporate governance. That is, they put pressure on the management to become more efficient, transparent, accountable, etc. They also ask the management to make consumer-friendly policies, to protect all social groups and to protect the environment. So, the changing ownership structure has resulted in corporate governance. 2. Importance of Social Responsibility: Today, social responsibility is given a lot of importance. The Board of Directors has to protect the rights of the customers, employees, shareholders, suppliers, local communities, etc. This is possible only if they use corporate governance. 3. Growing Number of Scams: In recent years, many scams, frauds and corrupt practices have taken place. Misuse and misappropriation of public money are happening everyday in India and worldwide. It is happening in the stock market, banks, financial institutions, companies and government offices. In order to avoid these scams and financial irregularities, many companies have started corporate governance. 4. Indifference on the part of Shareholders: In general, shareholders are inactive in the management of their companies. They only attend the Annual general meeting. Postal ballot is still absent in India. Proxies are not allowed to speak in the meetings. Shareholders associations are not strong. Therefore, directors misuse their power for their own benefits. So, there is a need for corporate governance to protect all the stakeholders of the company. 5. Globalization: Today most big companies are selling their goods in the global market. So, they have to attract foreign investor and foreign customers. They also have to follow foreign rules and regulations. All this requires corporate governance. Without Corporate governance, it is impossible to enter, survive and succeed the global market. 6. Takeovers and Mergers: Today, there are many takeovers and mergers in the business world. Corporate governance is required to protect the interest of all the parties during takeovers and mergers. 7. SEBI: SEBI has made corporate governance compulsory for certain companies. This is done to protect the interest of the investors and other stakeholders. PROFILE OF THE ORGANISATION LIFE INSURANCE CORPORATION OF INDIA Life Insurance Corporation of India  (LIC) is the largest  insurance group  and  investment company  in India. It’s a state-owned where  Government of India has 100% stake. LIC also funds close to 24. 6% of the Indian Government's expenses. It has assets estimated of  13. 25 trillion (US$264. 4 billion). It was founded in 1956 with the merger  of 243 insurance companies and provident societies. Headquartered in  Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 113 divisional offices located in different parts  of India, around 3500 servicing offices including 204 8 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of  India and has a network of 13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31. 3. 011) for soliciting life insurance business from the public. The slogan of LIC is â€Å"Yogakshemam Vahamyaham† which translates from Sanskrit to â€Å"Your welfare is our responsibility†. The slogan is derived from the Ancient Hindu text, the  Bhagavad Gita's 9th Chapter, 22nd verse. The literal translation from Sanskrit to English is â€Å"I carry what you require†. The slogan can be seen in the logo and is written in Devanagiri script below the hands holding the lamp. | Type | State-owned| Industry| Financial services| Founded| 1 September 1956| Headquarters| Mumbai,  India| Key people| D. K. Mehrotra, (Chairman)| Products| Life  and  insurance, investment,  mutual fund| Total assets| 13. 25 trillion (US$264. 34 billion)(2010)| Owner(s)| Government of India| Employees| 115,966 (2010)| Subsidiaries| LIC Housing Finance LIC Cards Services LIC Nomura Mutual Fund| Website| www. licindia. in| OBJECTIVES OF LIC OF INDIA * Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. * Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors a s well as the community as a whole, keeping in view national priorities and obligations of attractive return. * Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective capacities. * Meet the various life insurance needs of the community that would arise in the changing social and economic environment. * Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. * Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. BOARD OF DIRECTORS Shri D. K. Mehrotra,  (CHAIRMAN, LIC ) Shri T. S. Vijayan,  (Managing Director, LIC ) Shri Thomas Mathew T. (Managing Director, LIC ) Shri Sushobhan Sarker  (Managing Director, LIC ) Shri R. Gopalan,  (Secretary, Department of Economic Affairs,   Ministry of Finance, Govt. of India. ) Shri  D. K. Mittal,  (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India. ) Shri  A. K. Roy,  (Chairman cum Managing Director, GIC. ) Shri M. V. Tanksale,  (Chairman & Managing Director, Central Bank of India ) Lt. General Arvind Mahajan (Retd. ) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K. S. Sampath Shri Amardeep Singh Cheema ORGANISATION STRUCTURE OPERATIONS AWARDS WON BY LIC OF INDIA IN 2011-12 | Readers Digest â€Å"Trusted Brand† in the platinum category. | | Superbrands| | Asian Leadership Award| | LIC has been ranked :† Number One Trusted Service Brand† in the EconomicTimes Brand Equity Survey| | Rated as the â€Å"Most Preferred Life Insurance Company of the year† at the CNBC| | Dainik Bhaskar Group| | Bombay Chamber Of Commerce| | ABCI| | Star News- Customer Centric Brand Award| PROBLEMS OF LIC OF INDIA – The existing insurer, LIC and GIC, have created a large group of dissatisfied  customers due to the poor quality of service. Hence there will be shift of large number of customers from LIC and GIC to the private insurers. – LIC may face problem of surrender of a large number of policies, as new insurers will woo them by offer of innovative products at lower prices. – The corporate clients under group schemes and salary  savings schemes may shift their loyalty from LIC to the private insurers. – There is a likelihood of exit of young dynamic managers from LIC to the private insurer, as they will get higher package of remuneration. – LIC has overstaffing and with the introduction of full computerization, a large number of the employees will be surplus. However they cannot be retrenched. Hence the operating costs of LIC  will not be reduced. This will be a  disadvantage in  the competitive market, as the new insurers will operate with lean office and high technology to reduce the operating costs. – GIC and its four subsidiary companies are going to face more challenges, because their management expenses are very high due to surplus staff. They can't reduce their number due to service rules. – Management of claims will  put strain on the financial resources, GIC and its subsidiaries since it is not up the mark. LIC has more than to 60 products and GIC has more than 180 products in their kitty, which are outdated in the present context as they are not suitable to the changing needs of the customers. Not only that they are not competent enough to complete with the new products offered by foreign companies in the market. – Reaching the consumer expectations on par with foreign companies such as better yield and much  improved quality of  service particularly in the  area of settlement of  claims, issue of new  policies, transfer of the policies and revival of policies in the liberalized market is very difficult to LIC and GIC. Intense competition from new insurers in  winning the consumers by multi-distribution channels, which will  include agents, brokers, corporate intermediaries, bank branches, affinity groups and direct marketing through telesales and interest. – The market very soon will be flooded by a large number of products by fairly large number of insurers operating in the Indian market. Even with limited range of products offered by LIC and GIC, the consumers are confused in the market. Their confusion will further increase in  the face for large number of products in the  market. The  existing level of awareness of the consumers for insurance products is very low. It is so because only 62% of the Indian population is literate and less than 10% educated. Even the educated consumers are ignorant about the various products of the insurance. – The insurers will have to face  an acute problem of the redressal of the consumers, grievances for deficiency in products and services. – Increasing awareness will  bring number of legal cases filled  by the consumers against insurers is likely  to increase substantially in future. Major challenges in canalizing the growth of insurance sector are product innovation, distribution network, investment management, customer  service  and education. SWOT ANALYSIS OF LIC OF INDIA STRENGTHS: * India’s top insurance company and best among Public sector company. * Provide better infrastructure than any other Public company. * Brand Image * Govt Guarantee * Claims settlement * Pan India presence * La rge product portfolio WEAKNESSES: * Average waiting time for the customer is 15 to 20 minutes. * No separate customer care unit * Lethargic Staff * Mediocre Top Bosses Large scale Corruption in Main Office * Ultra-Slow decision making process * Internal problems between Top Management and lower cadre Employees OPPORTUNITIES: * Setup a marketing cell at the local branch. * Ensure that policies are diversified across several customer segments * Pension Market * Health Insurance * Large Real Estate portfolio THREATS: * Growth of private players has led to shifting emphasis from public sector companies. * Internal discord * New players * Red-tapism COMPETITION INFORMATION Main Competitors of LIC * SBI Life Insurance Company * ICICI Prudential Life Insurance Company Birla Sun Life Insurance Company * HDFC Standard Life Insurance Company * Reliance Life Insurance Company COMPARISON 1. Policies and Premium 2. Claims Paid 3. Profit of the year 2011-2012 4. Life Fund Policies and Premium Cla ims Paid Profit of the Year 2010-11 Research Methodology Research is the process of systematic and in depth study to search for a particular subject topic or area of investigation backed by the Collection, Compilation, Analysis or Interpretation of data. It is more systematic study or activity directed towards discovery and the development of organized body of knowledge. Success of Research depends upon the scientific methods used. There are various methods for Collecting the data. But it is not advisable and even possible to used all the methods. Every researcher must know the purpose of his study. For doing research one must set questions accordingly one has to find out and the answers through his own investigation. This Study is conducted to analyze the business ethics and corporate governance in Life Insurance Corporation of India. The data are basically segregated into two parts: a) Primary Data b) Secondary Data. a) Primary Data :- Primary Data is collected during the course of doing experiments in an experimental research. There are several methods for collecting primary data. b) Secondary Data:- Secondary  data, is data collected by someone other than the user. Secondary data are data which are collected by someone in past that includes previous year annual report, magazines, project report etc. For my project report, I  had used secondary data under which I  used annual reports which includes  balance sheets, P;L a/c, and other general information. Limitation of the Project Report Followings are the limitations of the project work taken by me: ? One of the limitations of this project study is of the time limitation. It is somehow difficult to fully know any big organization like LIC of India in this limited time  period. ? Senior managers and others officers in LIC of India are also very busy. They do not have enough time for solving our queries in details. Objective of the study The objectives have been classified by me in this project form personal to professional but here I am not disclosing my personal objectives which have been achieved by me while doing the project. Only professional objectives which are being covered by me in this project are as following- * To know about the business ethics and corporate governance of the organization. * To know the contribution of the organization to the society. * To know about the reliability of the organization. Scope of the Study So I am working on the project Business Ethics and Corporate Governance in LIC of India with the scope that I will get to know: * What ethics has the organization adopted? * What is organization doing for the welfare of the society? How reliable is the organization? Vision and Mission of LIC of India Mission â€Å"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development. † Vision â€Å"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. † Core Values of LIC of Ind ia * Caring and Courtesy * Initiative and Innovation * Integrity and Transparency * Quality and Returns * Participation and Relationship Trustworthiness and Reliability Ethics followed by LIC of India * Provide insurance cover and financial security to every insurable person. * Conduct all aspects of business keeping in view its interest and national priorities. * Provide them prompt, efficient and courteous service. * Act as trustees of their funds and invest the fund to their best advantage. * Conduct business with utmost economy and on sound business principles. Social advantages to LIC of India †¢ Providing organizational guidelines for business integrity in turbulent times. Helping employees deal with ethical issues they face daily on the job. †¢ Building solid company teamwork and productivity. †¢ Creating an insurance policy – to help ensure that company policies and procedures are legal. †¢ Avoiding criminal â€Å"acts of omission† which can lower potential fines. †¢ Reinforcing the values associated with quality management, strategic planning, and diversity management. †¢ Promoting a strong public image. Corporate Governance in LIC of India Adherence to good Corporate Governance is an integral part of the philosophy of LIC’s business conduct. The driving forces behind institutionalizing the practices of good Corporate Governance are various proactive measures, initiatives and guidance by the Government, LIC Board and its Sub Committees along with LIC’s Human Resources and Agents. Our practice of operational transparency, information sharing, accountability and ensuring dialogue with all the stakeholders in addition to formulation of value-based policies and practices at all levels made us to imbibe good Corporate Governance. This has enabled us to enhance our Brand Equity, strengthen stake of shareholders and maintain a healthy environment within the organization. This has led to a committed organizational focus on the customer service which in turn has contributed to a good growth in business. CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. Sponsorship of CSR by LIC of India 2009-12 I. Group Schemes and Social Security Claims under various Social Security Schemes: 1, 02,950 claims amounting to Rs. 287. 4 crore paid under Social Security Schemes. a) Scholarships of Rs. 102. 53 crore was disbursed to 13, 78,744 students as a free add on benefit to the children of the members of Janashree Bima Yojana under Shiksha Sahayog Yojana during the year 2010-11. b) Scholarship for total amount of Rs. 81. 85 crore was distributed to 8, 40,568 students as a free add on benefit to the children of members of AABY Shiks ha Sahayog Yojana during the year 2010-11. Social Security Cover: Total 2. 57 crore lives have been given insurance cover under various Social Security Scheme during 2010-11. Aam Admi Bima Yojana Aam Admi Bima Yojana was launched on 2nd Oct. 2007 and a total of 47, 01,814 lives under 17 states were insured during the year bringing the total lives covered under the scheme since inception to 1,77,47,480. II. Investment in Social Sector The total investments of the Corporation amounted to Rs. 12, 66, 539. 04 crore as at 31st March, 2011. The Corporation subscribed an amount of Rs. 65, 521. 83 crore (face value) and Rs. 40, 254. 38 crore (face value) to the Securities of the Government of India and the new loan issues of the various State Governments respectively during 2010-2011. SOCIAL RESPONSIBILITIES: It has been the constant endeavour of the Corporation to provide security to as many people as possible and to channelise the savings mobilised for the welfare of the people at large. To meet this end, the Corporation has been promoting Social Welfare through investments in Infrastructure and Social Sector which includes: * Projects/Schemes for generation and transmission of Power, * Housing Sector, * Water Supply and Sewerage Projects/Schemes, * Development of Roads, Bridges ; Road Transport. The total Investment in these sectors during 2010-11 was Rs. 5,235. 94 crore. The investments by way of Central, State and Other Government Guaranteed Marketable securities, Loans, Debentures ; Equity investments in Infrastructure and Social Sector amounts to Rs. 7,49,150 crore. III. LIC Golden Jubilee Foundation Under ‘Corporate Social Responsibility’, and to commemorate the Golden Jubilee of LIC in the year 2006, ‘LIC Golden Jubilee Foundationâ€⠄¢ Trust was formed with the objective of promoting education, health, relief of poverty or distress and advancement of other objects of general public utility. As on 31. 3. 011 LIC has provided a Corpus of Rs. 90 crore to this Foundation and the interest earned is utilized for funding various projects for charitable purposes. As on date, LIC Golden Jubilee Foundation has supported 165 projects to the extent of Rs. 15. 66 crore. Under this Trust a scholarship scheme is also formulated by name LIC Golden Jubilee Scholarship Scheme of the Trust to give scholarships at the rate of Rs. 10000/- per annum to meritorious students belonging to economically weaker sections of society to enable them to pursue higher education at graduation level. Scholarships were given to 802, 881 and 967 students during the years 2008-2009, 2009-2010 and 2010-11 respectively. ANALYSIS 1. Market Share 2. Goodwill Value Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a  monopoly  of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7% of India's  GDP  in 2006. The Corporation, which started its business with around 300 offices, 5. 7 million policies and a  corpus  of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. for a US $,  has grown to 25000 servicing around 350 million policies and a  corpus  of over  8 trillion (US$145. 6 billion). The Economic Times Brand Equity Survey 2010 rated LIC as the No. 4 Service Brand of the Country [6]. Though in the year 2010 is ranked at 4, the organization is consistently among the top rated service company of the India [7]. RANK-COMPANY 1-VODAFONE, 2-airtel, 3-SBI (STAT E BANK OF INDIA), 4-LIC (LIFE INSURANCE CORPORATION). From the year 2006, LIC is continuously winning the Readers' Digest Trusted brand award [8]. According to The Brand Trust Report [9] 2011, LIC is the 8th most trusted brand of India. . Growth Visibility of LIC of India FINDINGS After doing this project I found out that- * LIC of India conduct all aspects of the business keeping in view the interests of the community and the national priorities. * Provide insurance cover and financial security to every insurable segment including the socially and economically weaker sections of the society. * LIC of India provides their customers with prompt, efficient and courteous service. * It acts as trustees to their customer’s funds and invests them to their best advantage. * It builds and maintains enduring relationship with the customers. It also keeps the customers informed about their products and services. * It also promote a sense of participation among the workforce and make th em partners in progress. * It also works towards their job satisfaction and sense of pride. * It provide and environment and opportunities for growth to enable them to realize their full potential. * It also take steps to develop professional skills of the workforce to enable them to handle their assignments more effectively. * LIC is not only the largest but the most popular life insurance company in India.   LIC has gained the consumer trust and credibility over the time that is essential to sustain in the insurance business. RECOMMENDATIONS Though, LIC of India is a very reliable and ethical company. But still there are some points which should be taken care of in future to prevent any kind of risks to the organization: * More Corporate Social Responsibility initiatives should be taken in near future in order to increase its reliability among the society. * Integrity connotes strength and stability. It means taking the high road by practicing the highest ethical standards. Demonstrating integrity shows completeness and soundness in the organization. * Blaming others, claiming victimhood, or passing the buck may solve short-term crises, but refusal to take responsibility erodes respect and cohesion in an organization. Ethical people take responsibility for their actions. * Quality should be more than making the best product, but should extend to every aspect of your work. A person who recognizes quality and strives for it daily has a profound sense of self-respect, pride in accomplishment, and attentiveness that affects everything. From organization’s memos to the presentations, everything it touch should communicate professionalism and quality. * Trust is hard to earn and even harder to get back after you've lost it. Everyone who comes in contact with the organization must have trust and confidence in how you do business. * Managers and executives should uphold the ethical standards for the entire organization. A leader is out front providing an example that others will follow. * Good ethics should be most noticeable at the top. Every employee must be accountable to the same rules. Corporate values or ethics initiative must be â€Å"sold† and â€Å"marketed† aggressively throughout the organization. Every forum and medium should be used to spread the good message. Of course, it will only be credible if the organization is practicing what it preaches. * The ethics fervor should extend to the next generation of employees. The longer it lasts, the more ingrained the principles will become. CO NCLUSION Business ethics present pertinent solutions to the concerns and dilemmas faced by global organizations. Ethical leadership is essential for the long-term survival and success of any organization. In the era of globalization, business ethics considerably influence shareholders, employees, customers, suppliers, competitors, government and civil society. Organizations should focus on the ethical issues faced by them in various functional areas like marketing, finance, human resources, production, ICT etc. The commendable work done by global corporations in inculcating and practicing business ethics underscores the importance of value based leadership in international business scenario. Corporate governance is of paramount importance to a company and is almost as important as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud and the civil and criminal liability of the company. It also enhances a company’s image in the public eye as a self-policing company that is responsible and worthy of shareholder and debt holder capital. It dictates the shared philosophy, practices and culture of an organization and its employees. A corporation without a system of corporate governance is often regarded as a body without a soul or conscience. Corporate governance keeps a company honest and out of trouble. If this shared philosophy breaks down, then corners will be cut, products will be defective and management will grow complacent and corrupt. The end result is a fall that will occur when gravity – in the form of audited financial reports, criminal investigations and federal probes – finally catches up, bankrupting the company overnight. Dishonest and unethical dealings can cause shareholders to flee out of fear, distrust and disgust. BIBLIOGRAPHY * http://www. usinessdictionary. com/article/618/why-is-corporate-governance-important/ * http://www. licindia. in/ * http://www. businessreviewindia. in/top_ten/top-10-business/insurance-top-10 * http://www. licindia. in/GJF_aboutus. htm * http://www. licindia. in/Annual_Report_2011. pdf * http://www. irda. gov. in/ * https://www. google. co. in/ * http://en. wikipedia. org/wiki/Corporate_social_responsibility * http://www. mallenbaker. net/csr/definition. php * h ttp://en. wikipedia. org/wiki/Life_Insurance_Corporation_of_India

Effects of a College Education

A college education has numerous impacts on an individual other than just a better education. Individuals who have attended college and graduated tend to be more successful in life than those who didn't. There have been studies through the years that provide evidence showing that a college education can be very beneficial to a person and have major impacts on their lives. The most comprehensive review to date on the question of the impact of college is found in Ernest Pascarella and Patrick Terenzini's book, How College Affects Students.They used over twenty-six thousand practical studies completed over a period of 50 years in order to what aspects of a person's life is affected during college. They concluded that an individual's cognitive skills and intellectual growth; changes of identity, self-concept, and self-esteem; changes in relating to others and the people around them, attitudes and values, moral development, career choice and development, economic benefits, and quality of life after college are all affected while the student attends college.The details concerning cognitive skills and intellectual growth suggest that â€Å"students make statistically significant gains during the college years on a number of dimensions of general cognitive capabilities and skills† (p. 155), including the ability to deal with conceptual complexity, formal abstract reasoning, critical thinking, the use of evidence and reason to address ill-structured problems, and both written and oral communication. Most of these benefits seem to occur during the first two years of college.Research on the net effects, or changes that can be accredited to the college experience itself, rather than other potential influences, of these outcomes suggests that college has a â€Å"net positive influence on diverse measures of critical thinking† (p. 156), reflective judgment, and intellectual flexibility, above the maturity level of individuals who didn't attend college. Perhaps â€Å"college is the one [experience] that most typically provides an overall environment where the potential for intellectual growth is maximized† (p. 156).Although the may not be dramatic, changes concerning identity, self-concept, and self-esteem during the college years consistently support a significant positive effect, are evident. The evidence tends to support generally linear gains in academic and social self-concepts, as well as â€Å"students' beliefs about themselves in such areas as their popularity in general and with the opposite sex, their leadership abilities, their social self-confidence, and their understanding of others† (p. 203). In addition, they gain in self-esteem.With the caveat that much of the research on the net effects of college on these particular outcomes is too often confounded by age and normal maturation, and absent controls for family background or other relevant characteristics, Pascarella and Terenzini concluded that â€Å"post-sec ondary educational attainment appears to be related positively to changes in students' ratings of themselves relative to their peers† (p. 204), in terms of both academic self-concept and social self-concept. Such effects, however, appear to be small, mostly indirect, and interrelated with other characteristics.As far as changes in relating to others and the world around them, Pascarella and Terenzini concluded that, â€Å"students' relational systems change during the college years,† including increases in â€Å"students' freedom from the influences of others, †¦ in non-authoritarian thinking and tolerance for other people and their views, in intellectual orientation to problem solving and their own world view in general, in the maturity of their interpersonal relations, in their personal adjustment skills and general sense of psychological well-being, and in their more globally measured levels of maturity and personal development† (p. 57). It is believed th at â€Å"the early college years may be somewhat more influential than the later ones† in their effect on these outcomes. The authors also state that â€Å"the weight of evidence therefore fairly clearly supports popular beliefs about the effects of college in helping to reduce students' authoritarianism, dogmatism, and (perhaps) ethnocentrism and in increasing their intellectual orientation, personal psychological adjustment, and sense of psychological well-being† (p. 259).One of the more ample topics concerning research on the impact of college over the decades has focused on charting changes in the values and attitudes of students in five general areas: (1) cultural, aesthetic, and intellectual; (2) educational and occupational; (3) social and political; (4) religious; and (5) sex and gender roles. Pascarella and Terenzini found that the evidence for change during the college years is both plentiful and consistent, in that â€Å"colleges, as their founders and supp orters might hope, appear to have a generally liberating influence on students' attitudes and values.Without exception, the nature and direction of the observed changes involve greater breadth, expansion, inclusiveness, complexity, and appreciation for the new and different. In all cases, the movement is toward greater individual freedom: artistic and cultural, intellectual, political, social, racial, educational, occupational, personal, and behavioral† (p. 326).The research on the net effects of college support a consistent but modest influence â€Å"above and beyond the characteristics students bring with them to college,† as well as independent of â€Å"changes that have occurred in the larger society† (p. 326) Long considered an important goal of American higher education, the character education and moral development of students has only recently gained the systematic attention of researchers.Evidence to date suggests that â€Å"college is linked with stati stically significant increases in the use of principled reasoning to judge moral issues,† and that the college experience itself has a unique positive net influence on such development and may be accentuated differentially, from one institution to another, through the student peer context. Furthermore, the key to within-college effects in fostering moral reasoning may â€Å"lie in providing a range of intellectual, cultural, and social experiences from which a range of different students might potentially benefit† (p. 66), such as certain curricular or course interventions.Conditional effects in that regard are, in particular, more positive for those of high levels of cognitive development. Nevertheless, any influence in that direction seems to be long-term and consistent, and may even be linked ultimately to â€Å"a range of principled behaviors, including resisting cheating, social activism, keeping contractual promises, and helping those in need† (p. 367). Ind ividuals may change their career paths or interests while attending college. It is clear that students frequently change their career plans during college,† and that they â€Å"become significantly more mature, knowledgeable, and focused during college in thinking about planning for a career† (pp. 487–488).In terms of net influence, one of the â€Å"most pronounced and unequivocal effects of college on career is its impact on the type of job one obtains† (p. 488), offering an advantage through occupational status and influence. Whether by socialization or certification a college education offers access to better positioned, and potentially more satisfactory, mployment. Study of the economic benefits has also attracted the attention of post-secondary education researchers, especially since this factor â€Å"probably underlies the motivation of many students who choose to attend college rather than enter the work force immediately after high school graduati on† (p. 500). In terms of net effects, it appears that a bachelor's degree â€Å"provides somewhere between a twenty and forty percent advantage in earnings over a high school diploma† and an estimate of financial return on such an investment is â€Å"somewhere between 9. and 10. 9 percent† (p. 529).As I've said before, a college education has numerous impacts on an individual other than just a better education. Ernest Pascarella and Patrick Terenzini, while not the first to do so, are two people who have studied research to find the impact of a college education. Their research actually has evidence to support the argument that a college education is a valuable thing.

Allopatric Speciation and Habitat Adaptation Lab Report

Allopatric Speciation and Habitat Adaptation Purpose The purpose of this study is to determine if allopatric speciation i.e. divergence of species occurs because of geographic isolation Introduction Allopatric speciation is the result of geographical isolation of species due to physical barriers and each separated population adopting specific physical features to suit their new habitat. A good example is the Caribbean Anolis lizards that have varied limb size and shape depending on whether they live on the ground or on trees. (Ref. Losos Laboratory, Department of Organismic and Evolutionary Biology, Harvard University). However there are also cases where two physically isolated populations have not changed morphologically but do not interbreed. Snapping shrimps on either side of the Isthmus that links the North and South American continents are physically similar but the opposite sexes attack, rather than mate when artificially paired. Ref. Nancy Knowlton, Smithsonian Tropical Research Institute, Panama Hypothesis/Predicted Outcome It is hypothesized that physical or geographical isolation does not result in allopatric speciation or the creation of distinct species, based on the study by Futuyama and Mayer. Methods Our experiment was on observing and comparing the diversity in African Buffalo species present in different parts of the African continent. Results/Outcome Results showed that their skin colour, body mass (weight) and size has changed to suit their habitat as given in this Table. S.No. Species Geography Phenotype Character 1. Cape buffalo (Syncerus caffer caffer) South and East Africa Well built with Black skin Weight ~900 kg 2. Forest buffalo (S. c. nanus) Central and West Africa Red skin, ~4 feet height, weight ~270 kg 3. Sudanese buffalo (S. c. brachyceros) West Africa Dark colour, weight ~600 kg 4. Nile buffalo (S.c. aequinoctialis) Central Africa Lighter than Cape buffallo, smaller Discussion/Analysis Based on this study, we can conclude that geographical isolation results in speciation accompanied with change in phenotype to match the local requirement. Therefore, our original hypothesis that â€Å"physical or geographical isolation does not result in allopatric speciation† has been proved to be incorrect. References: 1. .Douglas J. Futuyma and Gregory C. Mayer Non-Allopatric Speciation in Animals Systematic Zoology Vol. 29, No. 3 (Sep., 1980), pp. 254-271 URL: http://www.jstor.org/stable/2412661 2. Losos Laboratory, Department of Organismic and Evolutionary Biology, Harvard University. 3. Nancy Knowlton, Smithsonian Tropical Research Institute, Panama http://www.teachersdomain.org/resource/tdc02.sci.life.evo.allopatric/

Letter Assignment Example | Topics and Well Written Essays - 750 words

Letter - Assignment Example Am writing this letter to represent four million advanced practice registered (APRN) nurses who have shown enormous support of the bill. APRN is a body that is committed to ensuring accessibility of high quality and affordable health services to people of all ages. Additionally, APRN ensures that people who are past the retirement age gets access to information which is critical for their healthy survival in that age-group. Therefore, with utmost faith we seek to encourage the Illinois Senate Committee on Health and the entire Legislature to assist in increasing the patients access to health services by reviewing and modernizing the laws that regulate the practice of APRN and the services they offer to the general public (CNS, 2009).. To provide a brief explanation of an APRN nurse; they are individuals who have completed an accredited graduate-level education level and successfully passed the national certification examination. Similarly, they have obtained intensive clinical knowledge and skills that enables them to be qualified to practice a direct care to the patients. They work with the other competent registered nurses to provide and display a greater depth and breadth of professionalism in this field. Lastly, APRN nurses are educationally fit to access, diagnose and provide a post diagnostic care which includes prescription of both pharmacologic and non-pharmacologic interventions. They have a sufficient and wider depth clinical experience. Of great interest is the fact that Illinois state policymakers have identified the vital relationship between the APRNs and consumers access to health care and have found it necessary to expand that access. Notably, in the year 2002, the legislature passed SB 1234, which removed the requirement of post-graduation of APRNs to obtain authority to offer prescriptions to patients (CNS, 2009).. Due to this registration, APRNs can now provide a detailed medication to their patients since the six month supervision was

The roles and influences of the various actors and groups involved in Essay

The roles and influences of the various actors and groups involved in policy-making - Essay Example Thus, tourism, for any State, creates job opportunities, bringing in money, while forming a cost-effective measure to revive ‘run-down communities’ (ibid). A sustainable and well-managed tourism sector is environmentally advantageous for the country, subsequently assisting in elevating the quality of lives for the local inhabitants. Thus it is imperative that public policies on an economic sector as important as tourism be carefully framed, keeping in mind various aspects like economic development of the chosen location, sustainability of the entire project, amongst many others. Policies, in both public and private sectors, provide a framework for making decisions, and help to connect the process of strategy planning with actual implementation (Wheelen and Hunger, 1990). Tourism policy is can be viewed as "a set of regulations, rules, guidelines, directives, and development objectives and strategies† (Goeldner, Ritchie & McIntosh 2000, 445). In tourism policymaking , the focus would involve around creating guidelines for the development of sustainable tourism along with a plan for future measures and developmental route (Jenkins 2000). The Tourism industry in any country includes other business sectors like hospitality services, museums, heritage sites, various events, and transportation, thus making it imperative that besides the governmental authorities, various actors and groups form other business sectors remain involved or taken under consideration while framing policies for tourism. This essay will examine the various actors and groups that remain involved in tourism policymaking, the levels of influence of the various groups involved in tourism policy-making and how this has changed over time, and evaluate the linkages and/or partnerships that exist between groups involved in tourism policy-making especially in the context of UK tourism policymaking. Discussion A brief analysis of tourism industry in UK: UK tourism primarily is domestic based, and figures (fig 1) show that UK residents make more than â€Å"1bn overnight trips and day visits† annually, which comes to a count of nearly of 17 trips per person residing in UK, subsequently leading to almost ?67bn being circulated within UK economy each year (Tourism-Alliance, Tourism: Britain’s best opportunity for sustainable economic growth and new employment, 2010, 1). Fig 1: Domestic Tourism Expenditure by Destination. Here we find that redistribution of expenditure within UK tourism occurs mainly from urban centres like large cities and towns, and moves towards small villages and communities that live near the sea. (Source: Tourism-Alliance, Tourism: Britain’s best opportunity for sustainable economic growth and new employment, 2010, 1). In the arena of international tourism, UK is a popular destination, with large number of foreign visitors coming in each year. These overseas tourists act as a booster for the UK economy (as shown in fig 2), a s they bring in annual revenue worth almost ?19bn (which is worth more than the revenues earned from North Sea oil). Of the revenue generated the foreign tourists, nearly â€Å"?3.5bn goes straight to the Exchequer through Air Passenger Duty and VAT to help fund health, education and other public services†

I do not know by Elia Abu Madi Essay Example | Topics and Well Written Essays - 250 words

I do not know by Elia Abu Madi - Essay Example Common knowledge dictates that the more educated a person becomes, the more effectively they can discern reality and determine which approach, worldview, or decision might be the best. However, as Elia Abu Madi illustrates within his poem, and ultimate level of uncertainty surrounds each and every aspect of life. Whether or not an individual is born to fulfill a specific destiny, whether or not there is any legitimate purpose to life, whether or not love, hate, fear, or even uncertainty helped to constrain and define the purpose of being is duly represented within this particular point. In such a manner, the reader can come to the understanding of the fact that even though Elia Abu Madi was well-traveled, well-educated, and exposed to a litany of different cultures and societies, an understanding of a purpose and meaning for life continued to evade him. Madi, Elia  A. "I do not know by Elia Abu Madi."  PoemHunter.Com - Thousands of poems and poets. Poetry Search Engine. N.p., n.d. Web. 6  Nov.  2013.

Emotional Brain Systems are critical for understanding the many facets Essay

Emotional Brain Systems are critical for understanding the many facets of emotional experience.Discuss with reference to the historical development of affective neuroscience - Essay Example Although feeling these emotions are normal part of being human, it is inevitable for some people to experience emotional disorders. In the absence of fully analyzing the normal brain function, it can very difficult to determine the main factors that trigger the sudden emotional changes. The study of affective neuroscience is very much focused on analyzing the relationship between the normal brain functioning with the human emotions and mood swings. Over the past 30 years, a lot of research studies were conducted to explore the significance of the brain system with different types of emotions including how the emotion is being processed in the brain despite the individual cognitive, motor behaviour, motivation, and language development (Dalgleish, 2004). The main purpose of this study is to examine the importance of studying the emotional brain systems as a way to enable us to understand the many facets of emotional experiences that we encounter each day. Upon going through the main discussion, a literature review will be gathered to enable the researcher compare and contrast the different historical point-of-view of other people with regards to the development behind the study of affective neuroscience. Emotional brain is basically â€Å"a part of the human brain that generates emotions† (Young, 2005). Upon examining whether or not the brain produces emotions in response to unconscious and conscious perceptions, LeDoux explained in his book entitled â€Å"Emotional Brain† that a test was conducted in animals revealed that the amygdale which is a small part of the limbic system is responsible in producing neuronal responses in case a frightening stimuli is present (Hendrix, 1997). Basically, there are two ways wherein sensory input can be processed by the brain as proposed by LeDoux. These are classified as the following: (1) high road; and (2) low road (Hendrix, 1997). The ‘high road’ transfers the nerve impulse straight from the ears

Philip Johnson's Glass House Research Paper Example | Topics and Well Written Essays - 1250 words

Philip Johnson's Glass House - Research Paper Example The Glass House, his most unique, acclaimed and popular creation, constructed in the year 1949, is still considered as an architectural marvel of all times. It can be perceived as the trend setter for architectural constructions in steel and glass. Outdoor and Interior Appearances and Its Relationship with Natural Environment: The Glass House, set on a luxuriant landscape, illustrates style over substance and rather than a habitat it serves the purpose of a lifestyle component, apart from reflecting Johnson’s philosophy of architecture being â€Å"expressive of and compatible with modernity’s machine processes.†5 The exterior of the construction exists in a serene and peaceful ambience of natural elements. It is mostly done in glass and charcoal colored steel with a brick floor that stands about 10 inches from ground level. The lawn is an exquisite green with lush green growth of grass, and the entire structure is again set against the greenery of trees and shrub s. From a distance when one looks at the Glass House, it gives an impression of open space as the transparent glass walls allow an unobstructed view of the other side, the repetition of a lush green abundance. The main focus of the interior is the flow of natural daylight, which the transparent glass structure permits in rich abundance and it sort of blurs its boundaries with the exterior. The interior comprises mainly open spaces, with cabinets made in walnut wood. Brick has been used on in the construction of a cylindrical structure that accommodates a bathroom on one side and a fireplace on the other. The interior of Glass House can further be perceived as the manipulation of the systems of domestic occupation especially in the context of large areas indirect illumination and glazing and Johnson has on several occasions admitted that Ludwig Mies van der Rohe â€Å"served as a prime†¦source† for his design of the Glass House.6 Moreover, Johnson has considered Mies, who had â€Å"employed similar forms† in his design of the Farnsworth House, as a mentor. The influence of Mies also reflect in the furnishings of the interior, the designs of which have apparently emulates his style. As can be evidenced from the above image, the interior is sparsely but elegantly done with a barely minimum furnishing that matches the sleekness of the glasswork. It is also relevant that both the components of the exterior and the interior are selected and placed in such a deft manner as to complement one another and enhance the aesthetic appeal of each. Style and Materials: The construction style of the Glass House is â€Å"so spare in form† that it provides little clue to the â€Å"variety of ideas† or the hard work that has gone behind its conceptualization and execution.7 Its plan necessitated drawing up of 79 â€Å"schemes and variations† that Philip has devised with 27 â€Å"clearly distinguishable approaches†

Company Law Assignment Essay Example | Topics and Well Written Essays - 1500 words

Company Law Assignment - Essay Example Non observance of this provision will attract both fine and imprisonment. (Walton & Henderson 2005:17). Under s 195(2), an interested director of a public company may vote and even present in the board meeting provided if the board passes a resolution before such matter is voted upon The nature and magnitude of the director’s interest in that business are taken into recognition by the board The board resolution should mention that director’s voting for the interested resolution are satisfied that the director’s interest should not bar the director from voting or considering on the business matter. Directors of public company are now accountable by s 191. The Australian Securities and Investment Commission (ASIC) can under s 196 may order that a director with a material personal interest as defined in s 195(1) can present and vote on such interested matters if there is no proper quorum is available and due to urgency of the issue or due to some other compelling re ason, that board can approve the same despite the fact of board’s conflict of interest instead of passing in Annual General Meeting. (Cassidy 2005:244). Since, the company has no constitution, replaceable rule in the Act will be applicable. In The Queen v District Council of Victor Harbour , Ex Parte Costain Australia Ltd [1983] 54 SASR 188 at 190, it was held that when a director’s interest is both material and personal ,such director is prohibited from attending and voting at the board meeting. In the Bell Group Limited (in liq) v Westpac Banking Corporation (2008) 70 ACSR I, it was held that an interest which has the potential to sway the voting by a director would be regarded as material interest. In Grand Enterprises Pty Ltd v Aurium Resources Ltd (2009) 256 ALR I , it was observed that the term â€Å" material â€Å" implied that kind of interest that requires to be of some value or substance instead of just a slight interest. (ASIC 2011:10). It is advisable th at Betty should inform her interest in the business to the all the directors and should desist from attending the board meeting and voting on the resolution in which she is interested as held in Queen v District Council of Victor Harbour except where her participation will be of more advantageous to the company due to her expert knowledge on the subject. Answer to question B (a) (ii) As regards to an interested matter by a director that is being considered by the board, directors who do not have a material personal interest in such transaction will be known as â€Å" non-interested directors.† A non-interested director should, when making a decision to offer financial advantages to a related party; To conduct proper investigation of management and should get proper advise, to the magnitude needed about the interested proposal. He should appraise the information provided to him independently As held in HIH Insurance Ltd and HIH Casualty and General Insurance Ltd , ASIC v Adler and others (2002) 41 ACSR , non-interested director should exercise â€Å" special caution â€Å" with conscientious concern to make sure that required corporate approval are received . For passing a resolution in which a director is interested, there should be adequate quorum of non-interested directors as stipulated in the constitution of the company or Corporation Act. In the absence of any valid quorum of non-int

Vector by Robin Cook Essay Example for Free

Vector by Robin Cook Essay The novel Vector is basically about the concept of bioterrorism and the extent by which it can be utilized as a weapon of mass destruction. Allowing such weapon to fall into the wrong hands can be equated with devastation of unknown proportions, especially with the increasing discontent, poverty, limited resources and other problems plaguing the world today. Dr. Jack Stapleton is the Medical Examiner assigned to investigate the death of Jason Papparis, a rug dealer who died because of anthrax powder inhalation. The cause behind Jason’s death was not easily diagnosed, and primarily, it was seen as influenza aggravated by pneumonia. Upon autopsy however, Dr. Stapleton was able to determine that it was not just a simple case of flu and pneumonia, which somehow led to some presumptions that the anthrax virus may have come from the rugs Mr. Papparis sold. Conducting his own private investigation on this case allowed Dr. Stapleton to collect further evidence that the virus did not come from the rugs but from a mysterious source. As the story unfolds, it relates the story of Yuri Davydov, a Russian immigrant to the US. Yuri used to work in a biochemical lab in Russia, and he was quite knowledgeable in creating bio-weapons. The accidental death of his mother and the loss of his brother lured him to try his luck in the land of milk and honey. He married an African-American woman to get his green card, but his alcoholism and inability to rise above his poverty were starting to depress him and making him hate what used to be the country of his dreams. He was able to meet two underground terrorists who created the People’s Aryan Army, Curt Rogers and Steve Henderson, and together, they devised a plan which they called Operation Wolverine. With this plan, they intended to spread a biochemical weapon through the airconditioning system of the Jacob Javits Building by faking a fire incident, and then spraying another batch of the virus in Central Park. Yuri is responsible for the anthrax virus which was sent to Mr. Papparis supposedly as a test of its potency, and was later found to be of good quality. Yuri gets to meet Dr. Stapleton initially during the latter’s investigation of Jason Papparis’ office. Dr. Stapleton and Yuri’s paths meet again as Yuri’s wife, Connie, dies allegedly because of asthma and some respiratory illness. In actuality, Yuri poisoned her with Botulism toxin as part of their plan to secure Operation Wolverine, a finding which Dr. Stapleton eventually came to find out but did not really expect Yuri to have been responsible for. Dr. Stapleton only wanted to forewarn Yuri about the possibility of the poison still being in their house and Yuri is caught red-handed so he locks up Jack and Laurie Montgomery in the basement but he made them his witnesses by telling them everything about the PAA’s plans. This is due to the fact that Yuri senses Curt’s personal bias and he anticipated being just another pawn in their game, and eventually being eliminated. Curt ultimately shoots Yuri in the head, and the original plans proceed but are foiled because Yuri creates a fake mixture which Curt and Steve believe to be the anthrax virus, hence, the city is saved. Meanwhile, as Curt, Steve and their comrades are celebrating while escaping the supposedly successful operation, they excitedly opened the envelope from Yuri which contained the instructions for making the anthrax mixture. The envelope contained the anthrax powder which was sent with a puff into the air inside the vehicle, and was Yuri’s way of getting back at the group which double-crossed him. 1) The importance of Jason Papparis owner of the Corinthian Rug Company with the anthrax virus is that he is the first victim in the story which became the precedent for the interest and deeper investigation by Dr. Jack Stapleton into the concept of biochemicals and bioterrorism. If not for his case, and the natural inquisitiveness of Dr. Stapleton, things would have gone differently, especially since the initial investigation yielded a very common case of influenza and pneumonia. Influenza and pneumonia are two very common illnesses which can be remedied with rest, fluids and sufficient antibiotics. But since Jason Papparis’ case was different specifically because of the swift progression of the illness which took only more or less 24 hours, Dr. Stapleton suspected something fishy going on. It was just fortunate that an autopsy was conducted and the extent of damage and bleeding to the victim’s upper respiratory system was discovered at the outset. The absence of pneumonia on the lungs further confirmed Dr. Stapleton’s original suspicions that this was not just an ordinary case. And then again, later on, when the brain was examined and found to be bleeding as well, Dr. Stapleton was able to arrive at a better diagnosis for the illness which afflicted Mr. Papparis, brought about by anthrax inhalation as related to a similar case which he was fortunate to have handled previously. 2) Curt and Steve thought that Yuri was a loose cannon because his thoughts and ideas were very different from theirs. They found Yuri a mysterious person because someone with his capabilities should not be driving a cab in New York. In addition, Yuri also defended Stalin, a renowned Russian leader who caused the killing of millions, as not being that bad – an idea which Curt and Steve found unacceptable, due to the great number of deaths associated with this leader. Not having any knowledge about Yuri’s bio-weapons background further added to this weird notion, especially since they had to supply Yuri with â€Å"crazy stuff† like dirt from a cattleyard in Oklahoma and fermenters from a microbrewery in New Jersey. Curt and Steve somehow wanted to get some proof that Yuri’s claims were legitimate and that he really knew something about bio-weapons. And then again, when Yuri tried to contact them at the Fire Department, Yuri was regarded as jeopardizing the security of the operation because he was Russian and both Curt and Steve did not want anybody to know about their possible involvement with a foreigner, which could possibly implicate them with terrorist activities and ruin their plans altogether. 3) Yuri’s disillusionment at the extensively-hyped American dream was the deep-seated bias against foreigners which is predominantly shared by the pure white Americans. It was also wrongly perceived by the people in communist Russia, where the situation is not really that bad, since there is lesser social conflict compared to the situation in the US. After all the hardships that Yuri had gone through just to make it to America, his expectations of freedom, riches and a good life were all shattered because in the US, he had to work for 12-14 hours daily just to survive. What’s more, he even had to become a victim to either the criminals in Washington, or the tax collectors in the government. Yuri had already come to a point where he already wanted to give up on his life in the US and go back to Russia, hence his cynicism directed at the Americans, and his resolve to use his knowledge to exact his revenge. On the other hand, Curt and Steve had their own share of negative experiences with the US government having both been part of the military. Curt became the leader of an elite Marine reconnaissance team wherein a recruit died, and upon inquiry, Curt was held responsible for the blame, thereby precluding any further opportunities for advancement in his career. Thus, Curt opted out. Similarly, Steve’s application as part of the Green Beret was lengthy and frustrating but he finally landed the post. However, within the 21-day assessment process, Steve came down with the flu and had to give up his training. Upon returning, Steve was informed that he had to go through the same grueling procedure from the beginning, leading to Steve’s disgust and final decision to give up his military career. Curt and Steve felt that they were shortchanged for their efforts since they merely wanted to serve their country, and yet they were rejected and not given the credence they thought they deserved. 4) Yuri was important to Curt and Steve because Yuri was knowledgeable in bio-weapons, having been a former laboratory technician working in biochemical labs in Russia and Siberia. Yuri is instrumental to creating the weapons that they were planning to use in bringing to fruition their plans of actualizing Operation Wolverine. Yuri worked for two years at the Sverdlovsk pharmaceutical plant, and Yuri knew that it was not really a factory for medicines but a KGB cover for the massive Soviet bio-weapons program. The factory where Yuri worked was called Compound 19, and he was tasked to do cleaning jobs of the inner biocontainment core. This was where Yuri was working when the accident occurred where Yuri unintentionally released anthrax spores into the atmosphere and killed hundreds of people, including his own mother Nadya. Yuri was pointed to as the scapegoat for this disastrous occurrence and Yuri suffered much, but had to be held in military stockade for a while. After that, he was sent to Siberia, and Yuri had the opportunity to work in another biochemical facility called Vector, where he specialized in improving Botulinum toxin and weaponized Anthrax. His brother Yegor was not affected by the anthrax, but he was not allowed to visit Yuri either in the military stockade or in Siberia. Later on, after he graduated, Yegor signed up for the military and became one of the first casualties in Afghanistan. 5) The People’s Aryan Army or PAA is a group which was spearheaded by Curt Rogers. It is a group which is based in New York, and its members are mostly skinheads, who do the dirty work for the group leaders. The group head/s capitalize on the hatred and violent nature of their recruits and were bound by a common denominator of hatred for the Americans. The PAA provided the manpower for the accomplishment of the group’s mission, while Yuri provided the biochemical weapons. Basically, the group’s dedicated mission was to destabilize the government and get back at the system which somehow worked against them and hurt their chances at establishing a better future for themselves. Curt recruited members with the same inclinations and leanings a trait which Yuri also demonstrated hence, they used each other for their mutual benefit and advancement of interests. 6) The first casualty is of course Jason Papparis, the owner of the Corinthian Rug Company who is significant being the novel’s first anthrax victim. He is important because his case triggered interest in bio-weapons and its use in the US. Another casualty is Connie, the wife of Yuri, whose case added color to the otherwise drab and monotonous routine of the medical examiners. Hers was initially called a case of asthma and respiratory illness, but later on was discovered to be a case of poisoning through botulism toxin, another bio-weapon. Nadya, the mother of Yuri, was also a casualty in this novel, when she also became an anthrax victim because of the unintentional spread of the toxin when the factory’s filters were opened, causing the spread of the anthrax spores to the environment. Yegor, Yuri’s brother was also another casualty after having gone to war without his mother, and his brother detained without any visiting rights. His role is significant because he adds to the melodrama in the life of Yuri, after losing his job, his mother, his freedom, and then his brother. Lastly, the policeman who was run down by Curt while they were taking the sprayer truck which Yuri requested is also another casualty in this novel, who is also significant since his appearance on the scene and how he was quickly eliminated illustrates how inhuman the PAA group can be. 7) Operation Wolverine is the PAA’s plan of calling the attention of the world to their cause. This operation was meant to create panic, chaos and death to a large segment of the US population. With the use of the anthrax virus which Yuri was tasked to create in his basement laboratory, the plan was to put the anthrax powder into the airconditioning system of the Jacob Javitz Federal Building which is a government agency, thereby poisoning its occupants as well as its immediate neighborhood. There was also a plan to spray the anthrax powder by means of a sprayer truck at the Central Park so that a greater number of the masses will be affected and not merely the government employees. By resorting to these plans of action, each member would somehow be able to get a dose of his revenge at the negative manner by which the US has maltreated them as individuals. Ideally, this is the scenario which Curt and his group wanted to happen but the circumstances changed especially when Curt decided to shoot Yuri on his forehead which only set off what Yuri had already forethought. 8) Curt and Steve conducted a fake inspection of the Jacob Javits Federal Building because they wanted to check the access points and the manner by which they could carry out the plan they outlined for Operation Wolverine. Curt managed to come up with an alibi based on an violation which happened during the last fire inspection of the same building. Upon seeing that the violation was already corrected, Curt manipulated the situation further so that the building’s electrician would allow them to check the HVAC system, the main control console and the main air induction mechanisms in the building. Everything was shown to them with the building assistant not having a slightest idea that he was already being an accessory to setting up the final stages of a terrorist plot. HVAC stands for Heating, Ventilation and Air-conditioning System and its main purpose is â€Å"to help maintain good indoor air quality through adequate ventilation with filtration and provide thermal comfort† (US Environmental Protection Agency). The HVAC sucks in fresh outdoor air into the building, and also disposes the stale air outside so that a good quality and supply of air circulates throughout the building. Without it, working or staying in a building for a long time will not be possible because of lack of air.

General Cable Company (GCC) SWOT Analysis

General Cable Company (GCC) SWOT Analysis Overview This section of the paper analyzed the strengths, weaknesses, opportunities, and threats faced by General Cable. The strengths, weaknesses, opportunities, and threats are identified and evaluated to determine the ways to capitalize, improve, or avoid these factors to strengthen General Cable as a company. Each of the categories is explained in details to see how it will impact the business or give it a competitive advantage. Below is the SWOT diagram. Strengths Geographically diversified  (may also pose as a weakness) Wide product breadth Lean efficient operation Weaknesses 1. Geographically diversified Political instability Volatile foreign currency exchange 2. Excessive debt dependency 3. Over dependence on one key supplier Opportunities Expansion into emerging markets Strong growth Government support of alternative energy Demand for greater communication bandwidth and global connectivity Threats Volatile commodity market Stringent regulations Litigations Strengths Geographically Diversified GCC operates in three geographical segments namely North America, Europe and North Africa, and the Rest of World (ROW). The biggest markets and contributors of income are the United States and Spain markets. With the focus of long term growth however, it is predicted that there will be increasing population and wealth emerge from the developing countries so GCC has been focusing on diversifying geographically.1 The recession in the United States and slow market in Spain proved that diversifying geographically has been an excellent move. Earlier this year, GCC acquired a major stake of Phoenix Power Cables, a cable manufacturer in Durban, South Africa as one of the moves to further diversify its market and increase its business and presence in Sub-Saharan Africa. 2 GCC is also increasing its presence in its Rest of World (ROW) market by strategic acquisition of local companies and/or building manufacturing plant. This wide international presence allows GCC to have several sources of revenue and globalize GCC as a brand in different parts of the world. It also allows GCC to not depend on a certain geographic markets and helps reduce business risks considerably by spreading its revenue sources. With a successful track record of overseas acquisition, combined with their technical know-how and expertise in the business, GCC is poised to leverage itself as a major global player amidst the ever changing business world. Even though geographic diversification is considered as a strength for GCC, this can also posed a weakness for the company. Detailed discussion of this is presented in the next section. Wide Product Breadth GCC has the broadest product offering in the industry. It offers wide variety of copper, aluminum and fiber optic wire and cable products which are sold to different markets and industries. These products are used not only in the cable industry but in other industries as well, such as, communication, construction, transportation, and oil and gas companies. The wire and cable industry is highly competitive and by providing a wide variety of products is a competitive strength for GCC. This diversified product offering helps reducing the impact of market volatility in one particular product segment and provides economic stability. Lean Efficient Operation GCC is a one of the leaders in the wire and cable industry and it strives very hard to be as lean and as productive as possible to give it a competitive edge. As an ongoing effort to reduce waste and costs, GCC spends considerable time and resources to educate its employees on how to reduce waste and cost and provide them with Lean Six Sigma manufacturing cost containment training. Talk about from the financial paper. Operating income and gross profit were up in 2008 and GCC attributed some of these achievements to improved efficiency as a result of continued Lean manufacturing initiatives. With a leaner and more efficient operation than the industry, GCC possesses a competitive edge. It allows them to profit more from the operation with its lower cost structure or sell the products at a lower price than the competitors but still making the same amount of profit. Weaknesses Geographically Diversified As mentioned earlier in the section, geographic diversification is a competitive strength for GCC. However, it is also a weakness for GCC. Geographically diversified means GCC operates in various parts of the world and exposed to different government rules and regulation, political instability in each country, as well as volatile foreign currency. GCC has a significant investment in Thailand and is therefore subject to the political instability there. In late 2006, Thailands elected government was overthrown which created a lot of unrest and instability in the nation. This inevitably posed as a problem for GCC to smoothly operate in Thailand and may negatively impact the financial health of Thailands operation. Volatile foreign exchange rates can pose as an advantage or disadvantage. Favorable year-over-year foreign currency translation is a benefit while unfavorable translation means a loss that GCC has to bear and report in the financial statement. For example, Venezuelan government recently decided to devalue its currency for non-essential goods from 4.30 Bolivars to each US Dollar to 2.15 which means that $40-$45 million USD will need to be written off from the balance sheet.3 All of these factors may have negative impact on General Cables financial numbers as it influences sales, growth and net profit. Unfavorable foreign currency and political instability are some of the factors associated with having a global presence. GCC has to find ways to overcome these weaknesses by constantly monitoring current and prospective rules and regulations in each country and assess the likelihood and impact of them on GCC. Foreign exchange futures can also be used to lessen the impact of volatile foreign exchange rates. Excessive Debt Dependency As mentioned in the earlier portion of the paper, GCC is highly leveraged by debt and this may potentially have an adverse effect on GCCs financial position. Talk about paper. GCC competitive edge may be limited as it may be harder for GCC to obtain further financing due to the significant amount of debt it possesses. Net income may also be adversely affected when business is bad and cash flow is limited and there is a significant amount of debt repayments to be made. Over Dependence On One Key Supplier More than 90% of General Cable 2008 copper rod purchase was supplied by one key supplier. This posed as a high risk for General Cable if this key supplier fails or for any reason, fail to supply GCC with adequate material. GCC did not have any long term purchase agreements with this key supplier and it is extremely hard to find another key supplier that can supply raw materials in such a short notice. Any unanticipated problems and interruptions with this supplier could have a material adverse effect on GCC. Be it natural catastrophes such as hurricanes and earthquakes or the suppliers own financial and company problem, all of this will have a negative impact on GCCs operation and financial performance. To shield itself from this weakness, GCC has to identify new prospective supplier. GCC needs a supplier who is reliable, reputable, and has the ability to supply massive amount of raw material at the right time and price. However it seems that GCC is reluctant to do so, based on the statement in the 2008 annual report that identifying and accessing alternative suppliers may increase their costs. The likelihood that this key supplier will be problematic should be minimal considering that GCC has outweighed the benefits and cost of identifying new supplier. Opportunities Expansion Into The Emerging Markets As there are massive growth and wealth coming from the emerging markets, GCC has been trying to expand further into these emerging markets and leverage their 150 years of technical expertise and One Company approach. China and India are one the largest emerging markets right now and GCC has considerable investment and presence in both of these countries. Its expansion strategies include acquisition and building manufacturing facilities. GCC recently acquired a local specialty cable manufacturer as it plans to reach out to the Chinese automotive and industrial markets.4In 2007, GCC started its expansion in India by entering a joint venture with a local firm to leverage itself in the construction cables industry for the Indian market.5 GCC is vigorously expanding worldwide by leveraging opportunities in the emerging markets from building new world cup stadium in south Africa for the world cup to reaching into the local markets in China and India. These projects, along with the recent acquisition and expansion in other emerging markets, further GCCs strategy to expand globally into economies that are building their energy infrastructure. This creates an opportunity for the company to increase its sales and brand presence by providing energy and electrical infrastructure cables in these emerging markets. The opportunity in the emerging markets will also help strengthen GCC as a company as it presents more revenue sources and also helps reduce business risks considerably by spreading its revenue sources. Strong Growth Government Support In Alternative Energy With the ever increasing desire for energy independence and environmental concern, alternative energy such as wind, solar and hydroelectric power is poised to grow rapidly. General Cable is one of the leading cable companies that support alternative energy by creating products that provide solutions in the alternative energy sectors. In 2008, more than $400 million of industrial and energy cable is sold to the terrestrial wind farm market globally and this number will continue to climb in the future.1 Alternative energy such as biofuels, biomass, geothermal, hydroelectric, solar, and wind provided 11.37% of domestic U.S. energy production in June 2009. This is a gain from the half of 2007 where alternative energy represents only 9.89% of the domestic energy production.6 The government support in the alternative energy movement is also an excellent opportunities for GCC. The economic stimulus package passed by congress supports renewable alternative energy and this will enhance investments and thus increase demands for GCC products. Both strong growth and government support for alternative energy allows GCC to capitalize on this opportunity to further enhance its market position and financial performance. Demand For Greater Communication Bandwidth And Global Connectivity As the demand for bandwidth increases to support the increasing need for global connectivity and communication, the demand for GCC products will inevitably surge. An article from ‘IT News Africa states that the demand for international connectivity has been much higher than anticipated, which proves there is a definite need for all the international cables global high-speed.7 Internet users will also increase as the emerging markets become more wealthy and require faster connection. This increase in demand is an opportunity that GCC has to capitalize on. Successfully capitalizing on this opportunity will have a positive impact for GCCs financial performance and reputation. GCC has taken considerable steps to take advantage of this increase in demand. It invested in multi-billion dollar of submarine optic communications markets, the medium for faster global connectivity. It is also in a stage to acquire a patent for a newly introduced product which will be used in networking cable technology spectrum. Threats Volatile Commodity Market GCC transforms basic raw materials such as copper, aluminum, petrochemicals and steel into highly engineered wire and cable products. Raw materials account for approximately 75% of the conversion cost which means that fluctuation in raw materials prices may adversely affect GCC cost of sales and in turn, its competitive pricing. The price of copper and aluminum, in recent months, has been extremely volatile. Another issue with the commodity market is that big increase in the prices will substantially decrease demand for wire and cable products and ultimately, will have a negative impact on GCC financial performance. GCC has been involved in numerous commodity hedging programs to shield itself from volatile copper and other raw material prices. However, due to the nature of the financial hedging, it is still no guarantee that they will always be able to protect themselves from the volatility. Stringent Regulations Operating in the wire and cable industry as well as having worldwide operation exposed GCC to numerous complex rules and regulations. The regulations range from import and export rules, individual government policies on the industry, environmental laws, to electronic or telecommunication rules. All of these factors are threats that may materially impact GCCs growth strategy, performance, and reputation. It is noted, however, that GCC is doing its best to ensure that the employees, subsidiaries, contractors, and agents comply with the rules and regulations. Litigations By the end of 2008, GCC and its subsidiaries have been involved in 34,730 lawsuits, 1,275 out of the lawsuits are pending non-maritime asbestos cases.1 These litigation claims are worth millions of dollars combine. If GCC is found guilty in any of the lawsuits and subjected to hefty monetary fines and payments, it will materially impact GCC operation and financial performance. However, GCC has been fighting these lawsuits for the past 20 years and therefore have the experience in defending itself against these lawsuits. In the past 20 years, GCC has had no cases proceed to verdict from those lawsuits and in many cases, was dismissed as a defendant. However, there is no guarantee in the foreseeable future that GCC will always have the upper hand in the lawsuits. Therefore the litigations faced by GCC is considered as a considerable threat. Conclusion GCCs global presence and lean operation put it at a competitive advantage in the industry. It allows GCC to have a wide spread of income source and avoid that economy cyclicality when one country is in recession. As it was discussed in previous section, however, global presence is also a weakness for GCC. Exposure to political instability and fluctuations in the foreign exchange market may have adverse effect on GCCs operation and financial performance. Wide product breadth is also another strength in that it helps reducing the impact of market volatility in one particular product segment and provides economic stability. In order to remain competitive in the industry, GCC has to not only maintain its strengths that give it a competitive advantage, but it also needs to capitalize on the opportunities available to the firm. The strong support and growth for alternative energy as well as increasing demand for greater bandwidth and connectivity are some of the opportunities that GCC has already capitalized on and will continue to do so. However, the rising raw material prices and volatility in the commodity market could pressurize the companys profit margins, thus posing a threat to the firm. Litigations that GCC is involved in is also a threat to the firms operation and financial performance if and when it is found guilty. It is crucial for GCC to continually analyze and assess its SWOT factors to see how it is going to impact the company. Doing so allows GCC to capitalize on its strengths and opportunities as well as take appropriate measure to decrease the likelihood of the threats and weakness from occurring. Annual report. http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzMxNTkwfENoaWxkSUQ9MzEzNzYyfFR5cGU9MQ==t=1 http://cincinnati.bizjournals.com/cincinnati/stories/2010/01/18/daily10.html?ana=yfcpc http://investor.generalcable.com/phoenix.zhtml?c=81254p=irol-newsArticleID=1374797highlight= http://www.generalcable.com.cn/ http://www.nema.org/media/ind/20070419b.cfm http://www.southernstudies.org/2009/09/power-politics-growth-in-renewable-energy-outpaces-nuclear-fossil-fuels.html http://www.itnewsafrica.com/?p=3921