Roles of the US Government in the US Economy Essay

How the US Government plays a role in our US Economy Fiscal responsibility is an important part of stability and the government must focus on maintaining the economic stability. As we all know, Government dept can quickly become a burden on the economy and weaken it. Macroeconomic policies change credibility of the government and strengthen political institutions. It is very important that our economy has credibility and stability because it’s vital to us Americans long term investment decisions that allow the US economy to grow. Government provide stability by ensuring to maintain stability of currency, enforce-defend property rights, and provide oversight that assures private citizens that their transaction partners in marketplaces are†¦show more content†¦A weak fiscal position can cause weak government ability to provide security for property rights, and makes it harder to borrow in the face of security crisis’s. Citizens receive value from governmentâ€⠄¢s role in making and enforcing laws that give citizens the opportunity to freely pursue opportunities. The US is a developed economy but don’t mean its government doesn’t need to retake reform measures. Having an orderly governing body allows private citizens to make long term investment decisions about their personal resources. The government involvement is vital because it provides the best opportunity to accomplish its national investment and growth goals through entrepreneurial spirits of all citizens. Government activities have a powerful effect on the US economy in stabilization and growth which is the most important are. The federal government guides the pace of economic activity, attempting to maintain steady growth, high levels of employment, and price stability. They do so by adjusting spending and fiscal policy- tax rates- or managing money supply and controlling use of monetary policy-credits. It slows down or speeds up the economy’s rate of growth , which affects the level of prices and employment. After the Great Depression in the 1930’s, recession (high unemployment) wasShow MoreRelatedThe Government Should Play an Active Role in Managing an Inflationary Economy983 Words   |  4 PagesThe government should play an active role in managing an inflationary economy. I agree that the government should play an active role in managing an inflationary economy. Buck (2011), stated that â€Å"The overwhelming majority of economists around the world believe it is appropriate for the government to take actions to promote economic growth and maintain low unemployment and low inflation.† Parkin (2012: 522) described inflation as â€Å"a persistently rising price level† and price level as â€Å"theRead MoreThe Financial Balancing Act1315 Words   |  5 Pagesprovided in the article. Governments and policy makers must enhance the emerging economic growth prospects in order to adjust financial markets and globalization. The current era of globalization has been characterized with financial imbalances and governments must learn to navigate a financial landscape that is fragile. Without the government intervention, the recent economic imbalances will continue to make uneven shifts in the market policies and mechanisms. When governments attempt to fight globalRead MoreHow Has The Constitution Shaped The Economic System1168 Words   |  5 Pageswas created in 1787, and is the supreme law of this nation. It is the backbone on which laws to follow and how we live today. There are six characteristics of a market economy. Which as follows; Private property, Freedom of enterprise and choice, Motive of self-interest, competition, markets and prices and limited role of government. One of the first economic concepts is â€Å"Freedom of Enterprise and Choice†. Which is stating that Americans can choose how they want to use their own resources to createRead MoreThe Republic Of South Korea1410 Words   |  6 Pageswith a GDP of $1.449 trillion(US) and GDP per capita (ppp) of 25,977(US), averaging an annual growth rate of 2.9%. Over the past four decades the country has shown incredible growth and global integration to become a high-tech industrialized economy. South Korea is the world’s 4th largest car producers being home to Hyundai Motors, the largest ship builder and also has many successful corporations such as Samsung. During the GFC South Korea was one of the Asian economies hardest hit although its protectiveRead MoreThe Federal Government Regulate The Insurance Industry994 Words   |  4 Pagesfederal government’s role is in regulating industries is to protect consumers and the market. There is an ongoing debate on whether the fed eral government should regulate the insurance industry as a result of the bailouts stemming from the Financial Crisis of 2008. Currently, state governments regulate the insurance industry. Proponents of federal regulation reason that states are inefficient in the duty of insurance regulation. Additionally, the federal government has economies of scale and may offerRead MoreThe State Of The Federal Bank Reserve1368 Words   |  6 Pages Growing up as a child, people have been told the economic is dead; none of us should be wasting time to understand it. Most us have been lived poor, which is related to the economic. Most of us know the meaning of the economic. Economic describe us by our social status and human behavior. Most girls would not date guys if he is not making enough to pay his bills or her bills. Money is the root of all evil; we even call it marketing, currency, trade, traffic, and industry. Money was hereRead MoreThe Government Intervention Of International Bus iness Essay1748 Words   |  7 PagesWhen governments amongst nations conduct in international business, it exposes them to increased risks and costs through unfair trade and bribery in order to obtain a competitive advantage or power. Mercantilism explains why the government intervention of international business increases the chances of these risks. Mercantilism is the theory that explains, the government will maintain their economy and trade to promote their own domestic industry at the cost of the other country leading to unfairRead MoreThe Future Of The Us Dollar1278 Words   |  6 PagesThe Future of the US Dollar in the International Market A society based on trade was established as early as 4000 B.C.E. (Hunt 6). However, the end of the Cold War marked the beginning of a new stage, an economy fully supported by globalization (Gilpin 10-12). This new beginning for the economy made the international markets the central focus of the economy. Since the gold standard had crushed, the US dollar became the official exchange standard and also the most used currency in the world. CurrentlyRead MoreBy The 1980S And Into Most Of The 1990S, The Asian Marketplace1713 Words   |  7 Pagesnothing less than a miracle. Business s were booming, and economies in the region enjoyed a GDP growth rate nearing about 10% per year – which was about 4 to 5 times the growth rate of the US economy at the time. This began in the 80 s when foreign investments in most Asian countries began to increase. Stable governments were luring foreign investors, with the promise of high returns, and currencies that were tightly pinned to the US d ollar that began throwing money into the ASEAN-5 (IndonesiaRead MoreThe Beginning Of International Liberalism1035 Words   |  5 Pagesfailed socialist revolutions in Europe and finally the Market crash of 1929 and the impact of the US Great Depression on World Markets. 1939-1973: WWII and the revival of US economy - US the sole healthy economy not influenced by the way yet making profits from the war. Post-WWII world economy guided by US economic principles inscribed in the Breton Wood Agreement - gold standard is pegged to the US dollar. The establishment of the Marshal Plan. The establishment of the World Bank and International

Ethical Issues Regarding Food Labeling Essay - 864 Words

So many consumers have fallen into the lies that zero calorie drinks are a healthy alternative when on a diet. The manufacturers actually market the product to make people believe their product will help them lose weight. What kind of marketing is this? Consumers are purchasing their products under false pretenses and outright deceptive advertising. Instead of using real sugar, the manufacturer uses artificial sweeteners, which are far worse for our bodies. It is necessary to look at these ethical issues pertaining to food labeling from a few different ethical perspectives to understand why the manufacturers deceive their customers. First, we will examine it from the manufacturer’s perspective; the Deontology theory. According to Business Ethics: A Managerial Approach, Deontology maintains there are certain standards of human decency and respect for the worth of others that rule out treating them in certain ways (Wicks, Freeman, Werhane, Martin, 2010, p. 6). The manufacturers justify their actions by meeting their goal in selling their product, in spite of what the effects may have on the consumers who purchase the product. Because actions are viewed as having essentially good and bad qualities, we need to understand where the manufacturer’s styles of thinking come from. The manufacturer’s intent or action is to market their product in order to make a profit. Deontologist view their rights or wrongs based on the action, not the outcome of the action. So,Show MoreRelatedEthics in Food Labeling and Packaging1188 Words   |  5 PagesEthical Food Labeling and Packaging After seeing the ad on television or in the weekly grocer flyer, seeing the actual labeling on a product is what consumers have to make informed choices. What started out to be another form of advertising and last attempt to sell a product, food packaging and labeling has been regulated through the FDA and FDamp;C to require certain information. It was declared to be the policy of the Congress to assist consumers and manufacturers in reaching these goalsRead MoreThe Ethics Of Genetically Modified Organisms1184 Words   |  5 Pagesgenetically modified organisms and the basic ethical concepts and theories necessary for reflecting upon moral beliefs using scholarly resources that underline that if people are aware of genetically modified organism they will tend to disregard GMOs. Entine, Jon. â€Å"2000+ Reasons Why GMOs Are Safe to Eat and Environmentally Sustainable.† Forbes. Forbes, 14 Oct. 2014. Jon Entine perspective on GMOs is that they are just as safe of even safer than conventional organic food. Similarly, Somerville’s article articulatesRead MoreGenetically Modified Organisms ( Gmo ) Essay1737 Words   |  7 PagesEurope and Japan, there is a strong popular opposition to the idea of eating foods made from genetically modified organisms. With respect to this debate, Philip McIntosh states that: Advocates of GMO foods, supported by the majority of scientific studies, argue that the use of GMO crops and animals is broadly safe, offers environmental benefits, lowers food costs, and helps reduce hunger worldwide. Critics of GMO foods counter that these benefits come at too high a social and economic cost, engenderRead MoreUnit 1 Individual Project Mkt640 – a Managerial Approach to Marketing1444 Words   |  6 Pagesbattle of legal and ethical complication. Given are examples of different situation of each topic to demonstrate how each take place when starting a new product or service. The Marketing Scenario Introduction When bringing a new product or service together there are certain aspects to be considered for a successful product or outcome. Those aspects may include target, sector, location, creating an effective marketing plans and advertisement strategies. There are also certain issues and challengesRead MorePolicy Position For Electronic Cigarettes Essay1453 Words   |  6 Pagesadvantages and disadvantages that have contributed to the numerous controversies they have generated. This has contributed to the emergence of the need for policy makers to establish a position for e-cigarettes in a public area. Evolution of the Issue Electronic cigarettes or e-cigarettes are battery-operated devices that are created to provide flavor, nicotine, and other chemicals. The device then converts the various chemicals into aerosol which is inhaled by users (â€Å"Electronic Cigarettes†,Read MoreGenetically Modified Foods: Annotated Bibliography860 Words   |  3 PagesGoldman, Karen A. Labeling of Genetically Modified Foods: Legal and Scientific Issues. Georgetown International Environmental Law Review 12.3 (2000): 717-60. Goldmans essay focuses on the regulations governing genetically modified (GM) foods, and in particular looks at the FDAs standards for GM foods in order to see if the regulations remain relevant and applicable to the current state of GM foods. She concludes by suggesting that for various reasons, the FDAs labeling requirements are notRead MoreThe United States Is Facing An Obesity Epidemic937 Words   |  4 Pagesdifferent companies and brands to include General Mills, Coca Cola, Proctor Gamble, Dr. Pepper, Oscar Meyer, Kraft and Frito Lay. Although each situation is unique, there are overriding questionable ethical issues. There are a number of ethical issues presented in the articles, but a few shared major issues which will be discussed. The United States is facing an obesity epidemic. Obesity rates have more than doubled in adults and children since the 1970’s (National Center for Health StatisticsRead MoreGenetically Modified Organisms and Food Essay951 Words   |  4 Pagestraits that would be useful, creating a new organism. This science of genetic manipulation has been utilized for many different purposes. One important area in which it is controversial is agriculture. Specific issues regarding this technology involve human and environmental safety as well as ethical and conservation concerns. A common example of a GMO plant would be Monsanto’s Roundup ® Ready Corn. One of the methods the Monsanto Company genetically engineers this plant is through soil bacterial and ERead More Genetically Modified Foods Essay1128 Words   |  5 Pagesadvances that are accompanied by confusing new terms. The food and drug administration, commonly known as the F.D.A, is focusing much of their time with food biotechnology. The all-encompassing use of biotechnology when applied to agriculture and food production increases the deeply felt environmental, economic and ethical concern. The liberation of genetically engineered organisms into the environment poses apprehensive questions regarding the serious promising risk to human health. Genetic engineeringRead MoreGenetically Modified Organisms ( Gmos )1692 Words   |  7 PagesSince 1996, there has been an ongoing controversy over genetically modified organisms (GMOs) and whether they are ethical and safe for the sake of human health and the environment. Recently, the controversy has been centralized around whether companies should be required to disclose GMO use on their labelling. Many people feel strongly that it should be up to the consumer to choose whether to buy a product that contains GMOs or to eat only organic options which are defined by the USDA as being produced

Nfl Helmet-to-Helmet Hit Rule Free Essays

Let Them Play the Game Every part of the game of football means very much to me, which is why I have a passion for the game and why I researched this topic. Helmets are one of the most important pieces of safety gear a football player can have. In October 2010, a new rule was signed off to be placed in the National Football League (NFL) rule book for the safety of NFL players. We will write a custom essay sample on Nfl Helmet-to-Helmet Hit Rule or any similar topic only for you Order Now The helmet-to-helmet hit rule is as follow: using any part of the helmet to butt, spear, or ram any part of the opponent’s helmet (Azpiri). A helmet-to-helmet hit is illegal in the NFL now.The punishment for a helmet-to-helmet hit for a NFL player is being fine with a gradual increase the next times they do it and/or suspension depending on the player’s penalty history. I propose for there not to be a helmet-to-helmet hit rule. The NFL should not include the helmet-to-helmet rule, by doing so; the rule will begin by taking one of the most exciting and popular parts out of the game, hard hits. One of the reasons why I believe that is because they have safety gear on such as: helmets, shoulder pads, knee pads, and thigh pads.If they keep adding rules, pretty soon, we will be able to call it flag football without tackling. Football is a violent sport, when players sign contracts with millions of dollars attached to them; they know how violent the game has always been. Not to mention, no one has to play. If a player does not want to take a hard hit, they do not have to. I agree with Rick Cleveland when he says, â€Å"They are ruining the game we love. Football is by nature a violent sport. Nobody says you have to play. Let them play football† (Cleveland).During my research, I found many NFL players that would agree that the helmet-to-helmet rule should not be a rule. For instance, James Harrison, who plays for the Pittsburg Steelers, made a statement after a helmet-to-helmet hit on a Cleveland Brown player during a game, which read â€Å"†¦ I didn’t hit that hard, to be honest with you. When you get a guy on the ground, it’s a perfect tackle† (Harrison). As Harrison said, a tackle is a tackle, no matter where or how hard you hit them. It is to me understanding that each and every NFL football player is taught everyday to play hard and it hard. NFL players know that they are taking a massive risk of getting injured every time they step a foot on a football field, whether it be for a game or just practice. If you have the football in your possession, you should be able to take a hit anywhere on your body, even if it is on your helmet. There is no point in time where a line should be drawn. If a player makes helmet-to-helmet contact unintentionally, he should not be fined as much as if it were intentional. Helmets keep a players head safe during a game. Most NFL players still wear helmets that were made in the nineteen-nineties (Halstead). DeSean Jackson now has an anti-concussion football helmet (Chase). If helmet companies manufactured more anti-concussion helmets, players would be better off and the rule would definitely not need to be in play. Also, according to Halstead, in two thousand-thirteen, players will finally have price breaks from helmet companies to be able to buy newer safe helmets (Halstead). If players buy more anti-concussion helmets, they would not get injured as easy nor would the helmet-to-helmet hit rule need to take place. How to cite Nfl Helmet-to-Helmet Hit Rule, Papers

Consultancy Expertise Advice On Tax Matters †MyAssignmenthelp.com

Question: Discuss about the Consultancy Expertise Advice On Tax Matters. Answer: I hereby wish to first and fore most accord you much appreciation for thy trust and considerations to me for the tax advice. I likewise wish to let you know that all the information that I will share while advising will be in conformity with the Australian Tax Office Regulation as well as any other prevailing regulation of the land applicable in the context. It is of great importance to inform the owner that employees superannuation is a compulsory statutory fund obligation an employer is bound to honour. However it is only compulsory to the 9.5% portion mark set by the marginal individual tax rate law thus anything above that it is subject employee vs employer agreements. I further wish to inform the owners that the idea of increasing the employees superannuation percentage portion to 13% may or may not have tax implications depending with the following factors; Whether the superannuation contribution is done after or before payment of income tax. Whether the contribution made is above the caps set and finally Whether the employee is classified as those earning high income or not as stipulated by ATO The owners should therefore be informed that if he does the addition within the procedural regulation acceptable while the employee has agreed for salary sacrifice and before paying income tax the fund is therefore free from tax subjection. This reduces employees salary for tax purposes and likewise benefits the employer since it is treated as employers contribution that is always eligible for treatment as deductible allowable for tax purposes Braithwaite(2007.Pg. 7). Concessional cap that depends with employees age likewise forms part of consideration such that the owners should ensure that the employees subjecting to addition superannuation percentage fulfils the cap age of between 0-48yearrs, 48-65years and that of 65 and above ,since this is what outlines the income levels. Concerning the private health insurance premiums I wish to inform the owners that as long as the fringe benefit is not discriminative i.e. it cuts across all the employees let him proceed with it because it is less expensive since it forms part of deductible allowable compared to salary or allowance that is subject to PAYG and income tax as well. Let him proceed with the reimbursement and introduction of the premiums but under indiscriminative rule that guides health insurance premiums thus allowable expense deduction and decrease in medical levy since the 2% portion to be subjected on gross income reduces as allowable expense on insurance is introduced Delany(2010. Pg. 12). I therefore strongly advice the owners to proceed with the 3.5% employee superannuation addition since there exist instant benefits on tax avoidance for both the employer and employee upon satisfaction of the ATO rules guiding salary sacrificial and that on accounting for superannuation fund. The owners are likewise informed to proceed with the reimbursement and introduction of health premiums since it forms part of allowable deduction as long as it is across the board i.e. involves all employees. References Braithwaite, V., 2007. Responsive regulation and taxation: Introduction. Law Policy, 29(1), pp.3-10. Delany, T.P., 2012. Fringe benefits tax.

Evolution of Microfinance and Poverty Reduction in Ghana free essay sample

In more than thirty years it has gained a reputation for being one of the most effective instruments in fighting poverty globally. Ghana’s financial sector in the past two decades has undergone a significant transformation especially with the promulgation of PNDC Law 328 of 1993, that allowed the establishment of different types of non-bank financial institutions, including savings and loans companies, finance houses, credit unions, as well as rural and community banks (RCBs). This policy transformation has given rise to a number of microfinance programmes and activities ranging from Government, Donors and NGOs. The microfinance industry in the early 1980s, was dominated by non-governmental organizations (NGOs) and experimented with innovative programmes in an attempt to address what they perceived as the failure of markets and governments to provide financial services to the poor. These organizations were heavily dependent on external grant funding. Generally, global perspective on microfinance is changing with even the meaning of the term â€Å"microfinance† altered. We will write a custom essay sample on Evolution of Microfinance and Poverty Reduction in Ghana or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page According to Consultative Group to Assist the Poor (CGAP) as recently as a few years ago, it meant, â€Å"†¦ a credit methodology that employs effective collateral substitutes to deliver and recover short-term, working capital loans to micro-entrepreneurs†. Today, the term encompasses a broad spectrum of financial services that includes not only microcredit but also savings, insurance, and money transfers. Perspectives on the target group for microfinance have also expanded in recent years to include low-income men, women and poorest of the poor. Another significant change is that microfinance services are no longer considered a niche market activity that should be confined largely to the development community and carried out solely by specialized microfinance institutions. Today, it is believed that if microfinance is to achieve its full potential, it must be fully integrated into a developing country’s financial system with access to vast amounts of human, physical, and financial resources and management know-how. A paradigm shift toward market-based approaches to poverty reduction is also taking place. In the larger business world, a growing number of established companies including some multinational corporations have achieved impressive results in reaching the poor in innovative ways with their products and services. This reaffirms the feasibility of large-scale commercial microfinance and strengthens private sector interest. Hence the acceleration in the creation of commercial microfinance institutions which is demonstration effect of the profitability of the sector, combined with market forces in the newly-liberalized financial markets. . 1? STATEMENT OF THE PROBLEM The main objective of Ghana’s Growth and Poverty Reduction Strategy (GPRS II) is to ensure â€Å"†¦sustainable equitable growth, accelerated poverty reduction and the protection of the vulnerable and excluded within a decentralized, democratic environment†. The main objective is to eliminate widespread poverty and growing income inequality, especially among the productive poor who constitute the m ajority of the working population. This group is however characterized by lack of access to credit. Littlefield and Rosenberg (2004) argue that the poor are generally excluded from the financial services sector of the economy. The liberalization of Ghana’s financial sector in the past two decades has led to the emergence of a number of Micro – finance institutions (MFIs) with the mission of extending micro-credit and other financial related services to the productive poor. The microfinance industry has now been in existence for over two decades serving the poor through the provision of financial and related services. The industry which has been predominantly run by NGO, microfinance institutions is going through an increasingly growing wave of commercialization. In addition, the transformation of many non-governmental organisations (NGOs) into microfinance banks has led to a strong increase in client deposits and refinancing lines extended under market conditions. Moreover, low default rates and an increasing number of sustainable MFIs, showing a positive return to equity; demonstrate that banking with the poor can be a successful business. While in the past MFIs had to rely almost exclusively on socially oriented non-profit donors and international financial institutions, they have recently been able to tap broader sources of fund considering the social and economic benefits and the large unmet demand for microfinance. This has attracted new investors and encouraged substantial commercial involvement in the industry. Microfinance is becoming more commercial as traditional non governmental organizations (NGOs) dedicated to microfinance are transforming into licensed banks and non-bank financial intermediaries in order to access public funds or small savings deposits. While there has been some research on the general impact of Microfinance on poverty, little has been written about the current trends in the Microfinance industry. There is the need to determine the effects of the current trends in the industry on microenterprises. This study examines the nature of the current trends in the industry commercialization of the microfinance industry and it’s impact on their clients who are mostly the poor in the Awutu Senya West District. 1. 2? OBJECTIVES OF THE STUDY The study which is conducted in the Awutu Senya West District in the Central Region has as its main objective to highlight the nature of the current trends as in the commercialization of the industry and examine its effects on the profitability of microenterprises in the district. The study also intends to give a brief history of microfinance and then attempt to forecast the future direction of the industry. 1. 4? SIGNIFICANCE OF THE STUDY Micro and Small enterprises contribute significantly to national economic development hence the need for their sustainability and growth. Microfinance is an effective development tool for poverty reduction for the simple reason that financial services enable poor to take advantage of economic opportunities, to build assets, and to reduce their vulnerability to external shocks that adversely affect their living standards. Financial services cannot function in isolation as a magic bullet to lift people out of poverty, but the close relationship between financial services and poverty reduction provides strong justification for putting financial systems for the poor at the center of development agenda (ADB report 2004). The transformation of the concept of Microfinance has been an ongoing process making it therefore imperative for both the industry players and their clients to be fully aware of the consequence thereof. There is the need to point out what exactly the changes are and the implications to the poor and low-income clients of Microfinance Institutions. Realizing these effects the industry players may streamline their operations in order to remain in balance. 1. 6? METHODOLOGY The research shall employ survey methodology. It shall combine relevant aspects of quantitative, qualitative, and participatory methods within the framework of impact assessment techniques. Microfinance institutions who are the providers of financial services to the poor and the client form the population of the research. Simple random sampling will be used to select two (2) microfinance institutions, while stratified sampling technique shall be employed to select sixty 60 clients of three microfinance institutions namely Express Savings and Loans, EB ACCION and Last Stop Microfinance in the Awutu Senya West District. 1. 7? SCOPE AND LIMITATIONS The scope of the study is on the state of the Microfinance industry as of today, its effects on poverty alleviation through microenterprise activities and the future prospects of the industry. Quiet a number of constraints are envisaged in undertaking this research, prominent among which is time constraints. This does not make it possible to make use the vast amount of materials available. However, it is hoped that a considerable amount of information would be gathered to enable an in-depth study to be undertaken. 1. 8? ORGANISATION OF THE STUDY The study will be presented in four main chapters. Chapter will include and introduction to the study, the objectives of the study, scope of the study, limitation of the study and methodology. Chapter two will entail the literature review which will give a brief historical background of the Microfinance industry in Ghana, Current trends in the Microfinance industry, Factors which accounted for the commercialization of Microfinance. Chapter three will cover the effects of commercialization of Microfinance on microenterprises in the Awutu Senya West District in the Central Region. The chapter four will essentially center on the conclusion and recommendations.

Business improvement tools - Lean and Six Sigma methodologies The WritePass Journal

Business improvement tools - Lean and Six Sigma methodologies Abstract Business improvement tools Lean and Six Sigma methodologies AbstractIntroductionConcepts of Lean and Six SigmaLean Six SigmaDiscussionChallenges of lean Six SigmaConclusionReferencesRelated Abstract Lean and Six Sigma methodologies are stand-alone tools and have been implemented in isolation by many businesses in the past. But there have been recent shift in the paradigm, as more and more businesses are implementing the integrated approach. The aim of this study is to understand the concept of lean and Six Sigma as a combined approach an also to investigate the advantages and the probable challenges in implementing lean Six Sigma in both manufacturing and service industry. Introduction Businesses are always looking out for the ways to improve their bottom line. Business improvement methodology has been constantly developing from the last century (Snee, 2004). While businesses have always ventured for improvement, but improvement as we think about it today, began with the seminal work of Taylor (1911) on scientific management. Among various process improvement methodologies, Six Sigma and lean are considered as the best methodologies widely used by various industries and are currently referred to as state of the art. But, there is a drawback in applying only one of the two methodologies alone, as the continuous improvement may have the deficiency of being slow. In the next section we would discuss the concepts of Six Sigma and lean. Concepts of Lean and Six Sigma The six sigma methodology is founded by Motorola and is a well disciplined and structured approach to enhance process performance and to obtain high levels of quality and low levels of variability. A six sigma process is expected to be statistically 99.99966% free of defects i.e, it aims for reduced defect rate of 3.4 per million opportunity (Brady and Allen, 2006). The Six Sigma approach starts with the identification of the need for an improvement initiative. The lean methodology founded by Toyota help organizations to achieve on time delivery of the right quality and quantity to satisfy customers (Salah et al. 2010). Lean helps in eliminating waste, variation and work imbalance. Waste not only includes unnecessarily long cycle times, or waiting times between value-added activities but also include rework or scrap, which are often the result of excess variability, so there is an apparent connection between Six Sigma and lean. Lean Six Sigma The phrase lean Six Sigma (LSS) is used to describe the integration of lean and Six Sigma philosophies (Sheridan, 2000). Figure 1 shows how lean and Six Sigma can be integrated for process efficiency and effectiveness. According to Bendell (2006), the concept of LSS as an approach to process improvement is yet to fully mature as an area of academic research. Smith (2003) has argued that the majority of the efforts to implement LSS comprehensively in organizations have not been realized to its full potential. Specifically, in case of fusing lean and Six Sigma, the two approaches are often been implemented in isolation (Smith, 2003). This has produced subcultures of lean and Six Sigma in an organization, which can cause a conflict of interest and drainage of resources (Bendell, 2006). Figure 1: Integrating the two improvement approaches (Source: Juran Institute) Arnheiter and Maleyeff (2005) have demonstrated through Figure 2, how each approach can gain when seen as a single framework and a certain balance can be reached when integrated effectively. The figure explains that equilibrium is needed to achieve between the two, moving from the blinkered approach in any one direction. Figure 2 indicates that an organization can run into risk by becoming too lean and therefore rigid in responses to the market and subsequently impacting on value creation. On the other hand, concentrating too much in reducing variation beyond the requirements of the customer would waste unnecessary resources in the pursuit of zero variation. To bring equilibrium, sufficient value should be created from customers’ viewpoint, so that market share is maintained, while at the same time variation should be reduced to an acceptable levels so that cost can be lowered by removing any over-engineering of the process. Figure 2: Competitive advantage of lean, Six Sigma and lean Six Sigma (Source: Arnheiter and Maleyeff, 2005) Six Sigma complements lean philosophies by providing tools and knowledge to deal with specific problems that are identified along the lean journey: â€Å"Lean eliminates ‘noise’ and establishes a standard† (Wheat et al., 2003). Arnheiter and Maleyeff (2005) have taken this discussion further in their work on the integration of lean and Six Sigma, and have outlined the benefits of such a consolidated approach. For example, Processes can be kept on target, effectively reducing waste incurred through faulty processing by incorporating lean with other scientific approaches like control charts for attaining quality. LSS is also widely recognized as leadership developmental tool. According to Welch and Welch (2005) the benefit of this principle lies on the capacity of developing a cadre of great leaders. Kiemele (2005) has suggested critical success factor for the deployment and implementation of LSS in the organization such as leadership alignment, proper selection of people and projects, training, motivation, accountability, information technology, marketing and supply chain management. Snee (2010) has supported the requirement of leadership aspect for implementing LSS by mentioning, â€Å"without the full support and involvement of top management the improvement effort is likely to wither on the vine†. Also George (2002) has signified that in order to influence the LSS learning in an organization,  there is a need of strong curriculum, communication channel, technology exploitation and documentation of best practices. In the following section we would explore the advantages and the probable challenges of implementing LSS through case studies. Case 1: Application of Lean Six Sigma in Manufacturing [Source: Lean and Six Sigma A One-Two Punch, Smith, 2003] The case study is about a manufacturing factory named Heatcraft that makes commercial refrigeration equipment. Though the factory had been following lean principles for a year but still, too many units were coming off the line leaking, creating costly rework loops, warranty claims and customer dissatisfaction. A lean Six Sigma Team led by Doug Bonner, a TMB senior consultant and Six Sigma BB was assigned with the objective of determining and fixing the major causes of leaks. â€Å"Once we knew what to work on, we began to map out the process† said Bonner. The team started its first kaizen event by breaking down the transformation steps successively noting down each time the product changed. Analysis revealed that more than half of the leaks were in the return bend of the coil. The team even found multiple variations in the way the units were made, from how far the coils were from each other and to how much the tubes stuck out before brazing connected them to the return bend. They determined which variations contributed to the leakage after analyzing the process, more specifically the differences between the two lines. Also the team fixed the quality issues of each brazer brazed by the employees, resulting in better quality at the source. The efforts from that first Six Sigma kaizen week yielded a 75% reduction in quality issues and a 40% overall reduction in leak rates by just focusing on one defect. Discussion As in the literature, we have seen that Six Sigma complements Lean principles; here in this case study also, we have found that the organization was rolling out too many faulty units irrespective of the fact that they used lean philosophies. The combination of both the approaches has helped the organization to get rid of the leaks. Using the tools of LSS, the lean Six Sigma team mapped the process, which helped them to reveal that the plant made two types of units with same bend. For investigating the process further the team created cause and effect diagram for the process, listing the five M’s and E. As Bonner said â€Å"All you need is one defect to cause a lot of grief†, so the cause and effect diagram proved helpful in measuring each step carefully and more importantly, the effect on the final product could be examined carefully. Such a detailed scrutiny of the process actually revealed the prime cause of the problem and helped the team to fix it up. By Applying LSS principles, the team standardized brazer quality. This actually ensured the better quality of the source materials used to manufacture the end product. Such a standard has brought a change in culture of the organization as the workers started getting feedback from their co-workers regarding their work after it has been tested in the test tank. Among the ancillary benefits, lean Six Sigma team’s efforts and observations also corrected problems with the header. After carefully watching the mapping process, the team discovered the piece was not being seated properly in the joint. The piece was reduced by  ¼ inch and a standard specification was institutionalized. This improvement reduced the defects to a significant extent and helped in achieving better flow and throughput. LSS principles help in yielding significant amount of process improvement by eliminating minute problems which remain undetected in normal production cycle. For example, we can understand that just focusing on the soldering aspect of the units, the organization has benefited to a substantial extent. Such a process improvement in an organization can be translated into various ways, be it financial benefit or customer satisfaction. The lean component helps in reducing waste from the process, whereas the Six Sigma component reduces the possibility of error. The integrated approach of the two principles helps the organization in attaining increased productivity or in broader way, financial gain as less rework need to be done on an end product. Simultaneously from the customer perspective, the improved quality of product creates a satisfaction among them. Also a decrease in operational cost due to process efficiency and increase in customer satisfaction would provide an opportunity for th e organization to serve more number of customers, hence resulting in revenue gain for the organization. Case 2: Application of Lean Six Sigma in a Service Industry [Source: Lean six sigma in a call centre: a case study, Laureani et al. 2009] This case study is focused on a large corporation in the service sector operating in the vehicle leasing and renting industry. Its European call centre was receiving an average of 1,200,000 calls annually from customers who had an issue with either the level of service received or the billing/invoicing process. Most of the time they failed to solve the problem at the first attempt, hence leading to customer dissatisfaction and unnecessary repetition of work in the Centre. The objective of the project was to increase the first-call resolution ratio. A cross functional project team was created led by black belt consultant with the intention of implementing DMAIC Six Sigma methodology integrated with lean principles in order to increase first-call resolution ratio. The project scope was laid down by the team, identifying which specific areas of the call centre and services they were going to focus on and also a high-level process map was created. The lean principles were used to identify and remove the four different types of wastes such as motion, waiting, over processing and defects that were hindering their first-call resolution ratio. The operational definition of first-time call resolution was developed and it was agreed by the major stakeholders involved in the whole process. The team sliced the measurement data into different dimensions and after analyzing they observed that two types of queries were accounted for 70% of unresolved first-time calls. The team provided tested improvement actions which resulted in reducing the percentage of unresolved calls from 11.82 percent to 8.45 percent. As this result seemed satisfactorily, the improvement actions were rolled out to the whole call centre. There was 3 per cent decrease of unresolved queries after first contact which resulted in 36,000 fewer calls to the call centre on an annual basis. Discussion The LSS methodology has not only helped the organization to reduce the waste by reducing the unnecessary movement of call centre operators who needed to move to perform some routine task such as sending/receiving fax but also helped to define first-time call resolution. This has actually helped to achieve the desired performance as the parameter to measure the success of first-time call resolution was apparent to all employees. Also the lean component of LSS has helped in reducing the waiting time for an operator to access necessary information from other department for catering the need of customers query. Hand in hand, as a part of the process, a consistent measurement system was followed that has assisted in measuring the performance of the process.   In precise, the DMAIC process has helped in developing advanced statistical techniques and to become â€Å"technical† in the approach to problem solving, implementing Six Sigma. On the contrary, the lean approach developed a culture towards continuous improvement and elimination of non value added activities before Six Sigma implementation. Drawing on the principles of LSS, tools and philosophies of both methodologies has enabled them to produce breakthrough innovations such as the quick wins in the improve phase that resulted in profound business improvements. The improvement ideas were pre tested through the pilot group and data were collected from the pilot group to quantify the improvement actions followed by calculation of the sigma value. This strict procedure of deploying improvement actions has ensured the overall quality of the services and helped them to reduce unresolved queries to a significant extent. One of the critical success factors for continuous improvement efforts at an organization is the availability of a common set of problem solving tools (Chapman and Hyland, 1997). This has been effectively achieved through the toolkit that Six Sigma and lean has provided when integrated. A known type of query was solved by the customer service at the first place without any defects. Hence the customer didn’t need to call back, thus the unnecessary works were reduced and customer satisfaction was increased. Challenges of lean Six Sigma Reviewing the above two case studies we have found some problems common two both the case studies. In the first case study of Heatcraft, we have seen some standards were institutionalized, but for fostering a climate for continuous improvement, an organization must train their employees about LSS principles. This training of employees can be time consuming as it would require balance between routine work and the work involved in LSS training and projects. In the second case study of Call Centre, the Black Belt consultant left the organization by handing over the completed control plan to the process owner and there was no commitment of revisit from their end. So, the assurance that improvement actions are still in place and the process has not reverted to the pre-project status was not there. It is not known from both the case studies that, how much each organization spent for training employees about LSS principles and also the cost of implementing LSS solutions in their business as it has been indicated by Senapati (2004) that such training cost and cost of implementing LSS solutions can be expensive. Also, LSS sustainability in the process requires high skill and sufficient resources are required to ensure its sustainability. Conclusion Lean and Six Sigma paradigms can be considered as influential catalysts for change as stand-alone methods but more provokingly, when fused together represents an exceptionally powerful tool. When the cultural aspects of lean are aligned with data driven investigations of Six Sigma, the integrated approach can bring a genuine and sustainable approach to organizational change and process improvement. References Arnheiter, E.D. and Maleyeff, J. (2005), â€Å"The integration of lean management and six sigma†, The TQM Magazine, Vol. 17 No. 1, pp. 5-18. Bendell, T. (2006), â€Å"A review and comparison of six sigma and the lean organisations†, The TQM Magazine, Vol. 18 No. 3, pp. 255-62. Brady, J.E. and Allen, T.T. (2006), â€Å"Six sigma literature: a review and agenda for future research†, Quality and Reliability Engineering International, Vol. 22, pp. 335-67. Chapman, R.L. and Hyland, P.W. (1997), â€Å"Continuous improvement strategies across selected Australian manufacturing sectors†, Benchmarking for Quality Management Technology, Vol. 4 No. 3, pp. 175-88. George, M.L. (2002), â€Å"Lean Six Sigma, Combining Six Sigma Quality with Lean Speed†, McGraw-Hill, New York, NY. Kiemele, M.J. (2005), â€Å"Critical success factors for deploying and implementing lean Six Sigma†, USA Armor School Research Library (March 2006), available at: www.amc.army.mil/amc/pe/documents/sestrng/Kiemele.ppt/ (accessed 4 March 2008). Laureani, A., Antony, J., Douglas, A. (2010) â€Å"Lean six sigma in a call centre: a case study†, International Journal of Productivity and Performance Management, Vol. 59 Iss: 8, pp.757 – 768 Senapati, N.R. (2004), â€Å"Six Sigma: myths and realities†, International Journal of Quality Reliability Management, Vol. 21 No. 6, pp. 683-90. Sheridan, J.H. (2000), â€Å"Lean Sigma’ synergy†, Industry Week, Vol. 249 No. 17, pp. 81-2. Smith, B. (2003), â€Å"Lean and Six Sigma – a one-two punch†, Quality Progress, Vol. 36 No. 4, pp. 37-41. Snee, R.D. (2004), â€Å"Six Sigma: the evolution of 100 years of business improvement methodology†, International Journal of Six Sigma and Competitive Advantage, Vol. 1 No. 1, pp. 4-20. Snee, R.D. (2010), â€Å"Lean Six Sigma   getting better all the time†, International Journal of Lean Six Sigma, Vol. 1 No. 1, pp. 9-29. Salah, S.,  Rahim,  A., Carretero, J.A.,  (2010). â€Å"The integration of Six Sigma and lean management†.  International Journal of Lean Six Sigma,  1(3),  249-274. Taylor, F. (1911), â€Å"The Principles of Scientific Management†, Norton, New York, NY. Welch, J. and Welch, S. (2005), â€Å"Winning†, Harper Business, New York, NY Wheat, B., Mills, C. and Carnell, M. (2003), â€Å"Leaning into Six Sigma: A Parable of the Journey to Six Sigma and a Lean Enterprise†, McGraw-Hill, New York, NY.

Assessment of The Economic Climate in Britain, Pertaining to Starting Essay

Assessment of The Economic Climate in Britain, Pertaining to Starting up a New Business - Essay Example ntinue pumping money in economic condition, the year (2012) closing with triple dip recession alarm with industrial production dropped by 9.8% as compared to 2011 and highest decline in 20 years (Elliot, 2012), results in imposing negative pressure on the business start ups as it seems difficult to reap considerable profits in this economic condition. On the other hand the positive signals such as growth forecast to remain 0.9% in contrast to -0.1% in 2012 and the UK job hiring pick-up (Murray, 2013), encourage the entrepreneurs to establish their own business set up as there are growth chances. Year 2013 gives mixed signals of growth such as reports of further decline in industrial production in 2013 while on the other hand, February 2013 reported permanent job hiring increased for four consecutive months in January 2013’ anticipating growth of almost 0.7% for 2013 (Murray, 2013). The decrease in the industrial production impose risk on the start up of a new venture as it ref lects decrease in the supply of products and hence increase in inflation. On the other hand the growth in the employment rate is beneficial for the start up businesses as it signals more consumption on the part of the individuals. Mixed signals despite consistent efforts traces trend mainly from triple dip recession due to deepened Euro-Zone crises and increased inflation curtailing consumer demand (Elliot, 2012). Ranking of UK on Doing Business chart developed by World Bank has improved from 8th positions in 2012 to 7th position in 2013 (World Bank, 2013; Schwab, 2012). This improvement is based on the factors assessing ease of doing business; therefore, self refers that ease has been increased in order to encourage investors to initiate business and gear up economic activity. Moreover, these... This essay aims to identify the impact of economic risks on the state of business environment of UK. It is being considered in the essay, that doing business in UK carry greater risk than ever. Despite consistent efforts the weak performance of UK economy is still creating greater uncertainty for the people who are interested in starting their own business venture. For instance, negative signals such as UK to borrow much higher in 2012-13 as compared to previous year with almost public sector job cuts reaching 1.2 million and further 2.7 million by 2018 Still, The UK conditions where unemployment has not been as high as expected, austerity plans of government stuck and jobs being created (though in slow pace) are all dampening recovery of economy as well as local demand. Conversely the stimulus is positive from external demand. Increase in the local and external demand results in providing the new start up businesses with better operating environment leading to rise in the overall profits and returns. Therefore, it can be stated the conditions to do business are much better for concerns intend to capitalise on this increasing demand. Ranking of UK on Doing Business chart developed by World Bank has improved from 8 positions in 2012 to 7 position in 2013. This improvement is based on the factors assessing ease of doing business. The ease has been increased in order to encourage investors to initiate business and gear up economic activity. Moreover, these positive factors are also reflecting acceptance in the financial market.