HM Analysis: Ansoff Matrix, Five Forces and PEST

HM Analysis: Ansoff Matrix, Five Forces and PEST H and M is a Swedish worldwide company which operates in the fashion sector. Its main competitors are INDITEX, GAR and Arcadian Group. The firm offer fashion cheap quality products on more than 2000 stores placed in 37 countries including Europe, Asia, North America and Middle East. It tries to adapt their products and their business model to the new market to facilitate the entry in a different cultural market country. The company has a strong corporate social responsibility concept and is involved in community and environmental projects; however it has been criticized due to several scandals. Despite of the economic crisis which causes a huge drop in the consumption and therefore in the fashion spending; HM thanks to its policy of low prices is still a quite strong company and has a good financial reputation as its results and ratios show us. The profitability of this company is due to the coast leader strategy that it has followed, focused on the outsourcing of the manufacturing process to countries with low labour costs, which allows HM to sell cheap products and obtain high profits. Also the blame for this business successful is the differentiation strategy that they have developed with the help of celebrities and famous designers lines. Introduction to the company HM (Hennes Mauritz) is an internationally famous company which operates in the fashion industry and besides it also markets cosmetics and accessories. It was founded in Sweden in 1947 by Erling Pearson. In order to know its market share, we must say that in 2009, sales including VAT reached SEK 118,697 millions; furthermore, the number of employees is around 76,000  [1]  . Geographical markets The company has around 2000 stores in 37 countries worldwide, specifically in the European, Asiatic, North American and Middle East market. Germany represents the biggest market with the 25% of HMs total shares, followed by United Kingdom and Sweden. As curiosity we can say that Glasgow has 7 HMs stores. Related to the importance that online selling has nowadays, this service is now available in Sweden, Norway, Denmark, Finland, Netherlands, Germany, Austria and UK.  [2]   Brands and products HM Group includes the brands COS, Monki, Weekday, Cheap Monday and HM home. The firm designs cheap yet chic clothing, offering this to the different segment markets (ladies, men and kids). Mission, values and goals HM describes its mission as Fashion and quality at the best price. In connection to the values, this company is driven by simplicity, continuous, improvement, team spirit, cost-consciousness and entrepreneurship. A sentence that can summarize HM values is the slogan We believe in people. Finally, HM goals are to intensify the sales in the existing stores, as well as, to increase the number of new stores by a net 10% to 15% per year. Expansion and maintaining of financial stability are HMs strategic goals. The growth, which is fully self-financed, will proceed with an emphasis on quality and continued high profitability.  [3]   Corporate Social Responsibility The company guarantees that its products are manufactured under good conditions. According to Karl-Johan Persson (CEO at HM) Being responsible is not only the right thing to do, it makes perfect business sense. (HM 2010) According to the HM 2009 Annual Report, HM acts in many markets as both a buyer and a seller. This requires HM to act responsibly and in a sustainable way with respect to the environment and social responsibility.  [4]   HM is very concerned with the supply chain working conditions, so because of that its very careful choosing the countries for the production and it also imposes a strict Code of Conduct  [5]  to its suppliers. Around sixty auditors works checking that this Code is being respected The company has environmental requirements on suppliers, as a clean production chain, green transport and sustainability policy and vision by sustainable use of resources and healthy products like the organic cotton. According to projects and cooperation, HM has developed community activities, like education and employment of woman and youth, water and innovation of sustainable textile materials. Also the company has collaborated such as UNICEF and WaterAid  [6]  . Furthermore, HM reports activities and progress on its sustainability programmes annually.  [7]   However, HM has starred in several scandals, for instance because they discarded bags of unwanted clothes outside HMS store in New York. These clothes could have been used by needy families in case not to have been intentionally damaged to avoid re-use. Besides, in March 2010, the company was criticized by pro-Palestinian groups for opening its first stores in Israel at the time when the UN Goldstone report highlighted Israels alleged violations of international law. C:Userspelegrià ±Pictureshm protesta palestina.jpg Furthermore, the German edition of the Financial Times newspaper has uncovered an alleged organic cotton fraud by European brands HM, CA, and Tchibo (Treehugger 2010) 2. External Environment To seek the main factors impacting on the industry attractiveness and on the environmental stability for HM Im going to use the study of competitors and the PEST analysis. 2.1 Competitors HMs main competitors in the most important markets are (Hoovers 2010): COMPANY COUNTRY BRANDS INDITEX Spain Zara, Oysho, Massimo Dutti, Pull Bear, Stradivarius, Zara Home and Uterqà ¼e GAP United States GAP, Banana Republic, Budgeteer Old Navy ARCADIA GROUP United Kingdom BHS, Dorothy Perkins, Miss Selfridge, Wallis, Topshop, Evans, Burton and Topman 2.2 Pest Analysis POLITICAL: HM is a Swedish brand so it has to follow the Swedish legislation, but also the laws of each country where it has establishments, for instance, in UK: The Consumer Protection from Unfair Trading Regulations 2008 which implement the Unfair Commercial Practices Directive in the UK. The Enterprise Act 2002 which has wide-ranging implications for businesses and consumers. The Electronic Commerce Regulations 2002 includes the information that the company must share with online customers and regulates advertising. Distance Selling Regulations 2000: these laws are aimed at businesses that sell goods or services to consumers by the internet, mail order, phone or fax. The Competition Act 1998 which forbid certain types of anti-competitive behaviour. Its also remarkable that in 2009 the Swedish corporate tax rate was reduced to 26.3 from its previous level of 28%. Trading agreements: most of the HM business is located in EU countries -such as Germany and the UK- without custom duties. ECONOMIC: Although the GDP dropped because of the crisis, it has increased by the 1.2% in the second quarter 2010.  [8]   Since March the 5th 2009, the official bank rate is placed in 0.5%  [9]  , because of that the investment cost is low. Consumer spending on clothing rose by just 10%  [10]  between 2004 and 2008, well below the 19.2% increase in overall consumer expenditure during this period. Even though 2009 has been characterized by deflation, the inflation rate is again positive (1.14 in September 2010)  [11]  . That is to say the demand is starting to rise. SOCIAL Due to the social and environmental conscience, HM has to adapt its policy and products to the new customer awareness. Fashion is more and more interesting for young people and that is the reason why this consumer group spends a high part of its incomes on clothes. Customers seem to prefer customized garments. These kinds of products are supplied generally by online sellers but can represent a competence. Fast changing fashion styles make the designers to be ready for a reply. HM is operating in Middle East and in Asia, therefore it should take into account the social and cultural differences (religion, language or roles of men and women in the society) TECHNOLOGICAL: Technology to make clothing: more updated machines are necessary to accomplish certain colours and patterns. The development of media technology and the internet will make HM popularity to rise. Online selling, available now in seven markets 3. HM financial performance To know HMs financial situation I am going to make an analysis of the most important financial variables and also to compare them with Zara and Primarks ones. Sales per year UK is HMs fourth largest market, contributing 6.4% of its turnover (Mintel 2010). 2005 2006 2007 2008 2009 SALES ( £) 400472 448583 527534 524531 565889 CHANGES IN SALES (%) 8,0986533 12,013574 17,600087 -0,569252 7,884758  [12]   In 2008, due to the financial crisis, UK suffered a huge drop in the GDP and in the consumption, for example the household clothing expenditure was 21,60  £ per week and in 2003 it was 27  £.  [13]  At the end of May 2010, sales rose by 15% due to the fact that 10 new stores opened. and at the end of May 2010, sales rose by 15% due to the fact that 10 new stores opened and at the end of May 2010, sales rose by 15% due to the fact that 10 new stores opened 14 In the previous graphic, we can see Primark has a bigger market share and besides it could profit of its low prices in the crisis, gaining ground to its competitors. Zaras turnover is lower than HM. Operating profit It has not followed any trend for the last five years, it has fluctuated depending on the year. 2005 2006 2007 2008 2009 PROFIT ( £) 44260 62013 53041 8767 10576 CHANGES IN PROFIT (%) -2,906658 40,1107094 -14,46793 -83,47128 20,634196  [15]   In the previous table, the most notable thing is the sharp decline that the operating profit had in 2008. The causes are the increase in selling and administrative costs. According to the 2008 Annual Report this is mainly due to an increased cost level relating to reinforcement of the organization in preparation for the long-term investment in store expansion, Internet and catalogue sales and new initiatives. 16 As we can see in this comparative chart, the three companies operating profit has followed a similar tendency with an important drop in 2008. We can also notice that Zaras operating profit in UK moves in negative numbers. Liquidity Analyzing the following table, we can conclude that HM has a healthy financial position, because in general to have a current ratio higher than 1,5 is a good sign, even more if its a fashion retail company. 2005 2006 2007 2008 2009 CURRENT RATIO 1.76 1.77 1.4 2.4 1.83  [17]   The liquidity or acid test ratio shows how liquid the company is relative to short-term liabilities. Stock is excluded as it can take months to turn into cash. As its higher than 1, we can say that the liquid assets exceed the current liabilities. 2005 2006 2007 2008 2009 LIQUIDITY RATIO 0.97 0.96 0.88 1.77 1.22  [18]   It can be said that HM has sufficient money available to meet its short-term commitments. Thanks to the next graphic we can conclude that in liquidity terms Primark can have problems because its current ratio is always under 0,5. 19 Solvency 2005 2006 2007 2008 2009 GEARING RATIO 34.61 81.82 110.09 52.24 51.12  [20]   The gearing ratio measures the proportion of the companys total capital that is borrowed. The higher the gearing ratio is, the bigger the proportion of the companies money that is borrowed and therefore the bigger the risk. In 2007 the ratio obtained was worrying because the loan capital was higher than the capital employed. This was due to the heavy investment that HM was doing in its international expansion and in new initiatives. 21 The chart shows us that Primark has solvency problems so it could have problems if interest rates are going up. On the other hand, Zara is solvent. Investment In this paragraph I have used the ROCE (Return on capital employed) which measures whether or not a company is generating adequate profits in relation to the funds invested in it and is a key indicator of investment performance. 2005 2006 2007 2008 2009 ROCE 63.1 82.06 69.44 7.43 6.16  [22]   In retail lower figures would be experienced, ranging between 5% and 15% and in the last two years, is where HM is placed. We can see that this ratio had a sharp drop in 2008 but before this year this company was extremely profitable. 23 Primark is the best performance in this area and Zara has seriously problems above all caused by the negative numbers in its profits. 4. Competitive strategy 4.1 Porters five forces analysis In this paragraph, Im going to use Porters five forces analysis to determine the intensity of competition and profitability that can be expected in the fashion retail sector. C:Userspelegrià ±Picturesporters-five-forces-model.jpg  [24]   Threat of new entrants UK market is not saturated There are not barriers to entry in distribution due to the low capital required to open a new store. However, in manufacturing there are important barriers to entry due to the scales economies and to the high investment capital required. Fashion products have a high margin. Threat of substitute products For the fashion sector we must talk about replacing brands, not products. There are a lot of fashion retailers in the market which HM is present. Besides, the demand is very variable in this market because of the continuous changes in customers needs and requirements. Relation between quality and price is improving because of the outsourcing of manufacturing in countries with lower labour costs. Bargaining power of buyers One negative aspect is the almost nonexistent loyalty in the cheap fashion segment. Also the switching costs are low. Price is a very important variable for customers. Among the positive aspects its important to say that the volume of purchase is small, that is to say a single buyer is irrelevant for the company. Apart from customers association, they are not very well organized to defend their interests. Bargaining power of suppliers It is not very high because there are a lot of suppliers in countries with low labour costs. That is to say, retailers can impose the demanding conditions because they have more power than suppliers. Rivalry among existing firms in the fashion industry There are a lot of existing local, national and international competitors. The opportunities to growth are not very high because of the maturity of the sector. The price variable is very influential in consumers when considering alternatives. The quick changes in customers requirements do not permit to develop strong scale economies. In this market is very important the good image of the brand worldwide.  [25]   7.2 HM competitive strategies Cost leadership It is a strategy based on scale economies and in the outsourcing of the manufacturing process to countries with low labour costs. In this way the company can offer low prices  [26]  without losing quality and besides being profitable. Thanks to it, the company can self-finance to increase the number of stores and the sales. HM mission is offering quality at the best price. Differentiation strategy This strategy was implementing few years ago. Celebrities and famous designers have created exclusive collections for HM  [27]  . Thanks to these collaborations, the company achieves to differentiate in the fashion retail market. This phenomenon is called masstige  [28]  , and can be defined as an alliance between a prestigious brand and a mass consumer brand. Thanks to it, consumer can buy a branded product at an affordable price. Masstige is formed by two words mass market and prestige Customers perceive that HMs have an added value in comparison with other competitors and they are willing to pay a premium price for them. It the short run the company improves its turnover and in the long term it builds a stronger brand awareness and prestige that it could use to penetrate in difficult markets. 5. Strategic directions of development I am going to use Ansoffs matrix to analyze the main strategic directions followed by the company through the product and market: C:Userspelegrià ±PicturesAnsoff-Matrix.gif  [29]   Market penetration: This strategy is used to increase existing products sales in the current market. This can be achieved gaining competitors customers and encouraging them to acquire more companys products. HMs key for market penetration is offering fashionable clothing with cheaper prices than other competitors like Zara  [30]  . Doyle (2002) argues that the foundation of a successful brand is quality. The company is very concerned about that, therefore it has comprehensive quality control methods which guarantee customer satisfaction. Thanks to the strong advertising campaigns the company has increased its popularity worldwide helped by the globalization of fashion trends and lifestyles. Market development: Lynch (2003) says it involves targeting new segments of a market, identifying new uses for the companys products or entering new international markets. HM internationalization strategy is based on entering one market at a time. Although the standardization of HMs products, the company introduces slight variations to be adapted to the new market culture. According to the new market segments, the company has launched COS (Collection of Style) with more expensive and smarter clothes than the HMs common one. Product development It can be defined that offering really new and innovative products to the current customers. HM develop this strategy, for example, through strategic alliances with famous designers and fashion icons like Karl Lagerfeld, Madonna or Roberto Cavalli which improve HMs prestige worldwide. Furthermore, the company concerns about research and development, for instance, it introduced environmental friendly materials like organic cotton in its 2008 Spring Collection and then along its entire range of products. Also it is important to underline here that HM has created perfumes, cosmetics and beauty products. Besides as I have said in the introduction HM has a home line available on the internt. C:Userspelegrià ±Pictureskarl.bmp . Diversification: This strategy is the riskiest because it means to develop new products and entering new markets. HM has been focusing in fashion items like clothes, jeweler, shoes, bags or accessories so it has not developed very much this strategy. Only they have performed a diversification strategy, specifically household items through HM Home.  [31]   The company has also developed curious products such as the stuff pack for the computer game The Sims 2 called Fashion Stuff Pack in June 2007 in collaboration with Maxis game developers. 2 6. Methods of development In this section, I am going to analyse the methods of development used by HM in the recent years, and besides the benefits and challenges that each one involve. Lynch (2003) said that HM has followed a forward vertical integration strategy as method of growth. This means that the company develops activities oriented to customers, the final product and the distribution network (retailing) more than related with suppliers (backward integration). Thanks to this strategy, the company can collect information about sales and customers needs to reply quickly to changes in the fashion market. HM and Zara are known as fast-fashion retailers. This has permitted them to expand successfully in Europe, Asia and America. However, they have a different internationalization strategy, because HM tends to adapt its products and strategy o the new market while Zara reproduces the original successful business model in all the markets. Zara prices vary depending on the country while HM has the same price in all the markets in which it is present HM is a strong financially company which seeks to maintain a good profitability in its growth strategy. We can say that the growth is substantive but also controlled. The growth goals are to increase the number of stores by 10-15% per year, as well as increasing sales in existing stores. In the last five years, the company has had a great growth in number of stores, turnovers and earnings per share. Focusing on HMs geographical expansion, its first store abroad was opened in Norway in 1964. Then it continued with the expansion in UK, Denmark, Switzerland and Germany. In the 1990s, it opened stores in Finland, France, Belgium, Austria, Portugal, Spain and the Netherlands. The first store in US was opened in New York in March 2000. The first store in Asia was in Dubai in 2006, and thanks to a franchising strategy. After this, it entered to East Asia by opening stores in Hong Kong and Shangai  [32]  in 2007. Japan in 2008, Russia in 2009 and Corea in 2010 were the following countries to enter. The two first Israeli stores opened in 2010 and as I said in the introduction there were pro-Palestine group protests. It is planned to open new stores in Croatia and Singapore for 2011. HM main method of entry is an organic growth by opening is own stores in the new market. But we can see also that since 2006 the company has followed a franchising strategy in Middle East to open 3 stores in Dubai in agreement with M.H. Alshaya, a company from Kuwait specialized in holding franchises with international retail brands. In this paragraph I am going to use the SPACE matrix (Strategic Position Action Evaluation matrix) which is a management tool used to analyze a company and to determine what type of strategy it should undertake. Rowe et al. (1989) developed this model based on four important variables: The stability/ turbulence of the environment Industry attractiveness The competitive advantage The companys financial strength Throughout this report I have analyzed these variables, therefore it can be argued that HM is a strong financially company, as the sales, profits and financial ratios show. To determine the industry attractiveness it is useful the Porters five forces seen in the section 4. Following with the environmental stability we can use the PEST analysis done in the section 2 and for the competitive advantage it has to be taken into account the strategic directions and the methods of development. After having analyzed all these points and drawing the SPACE matrix, it can be concluded that HM should follow an aggressive strategy. HM has a strong competitive position in the market (a known brand worldwide) and a quite good financial position to support this strategy. It needs to use its internal strengths to develop a market penetration and a market development strategy. In fact it is the strategy that HM has been followed in the last years, as the expansion to Asia and Middle East show (market development strategy) and opening more and more stores in the existing markets such as Europe (market penetration). As recommendations, it can be suggested that the company entered South American market by performing a market development strategy. HM has not arrived yet to this market and it would be very interesting due to there are a lot of customers in this market interesting in buying fashion cheap clothes and the company could adapt quickly to the South American market culture, gaining ground to its competitors within a market full of opportunities to growth. On the other hand as a market penetration strategy it can be suggested to follow with the opening of new stores in the current market, increase the size of the existing stores and try to manage present products and services more effectively.

Nell :: essays research papers

Nell 1) The loss of Nell's twin sister had a dramatic effect on her. Nell and May were raised in a secluded environment with no outside contact. As a result, May and Nell became very close emotionally and were an integral part in each others lives. When May died, Nell lost part of her life as well which resulted in vivid memory replay. A good example of this is when Nell was turning around in circles by herself but, in her mind, she was turning around in circles with her missing half. At the end of the movie, the evidence of the importance of May in Nell's life was still evident as Nell played will Jerry's daughter on the rocks that May and her once played on. The movie did portray what is generally believed about twins. The loss of one had a dramatic effect on the other. They had their own twin speech and their own games. At the end of 20 plus years, Nell still felt the loss of her twin sister.   Ã‚  Ã‚  Ã‚  Ã‚  2) The expert psychologist in the movie believed that Nell was mentally retarded and had made a small amount of intellectual development as a result of being raised in seclusion. Fortunately, they were wrong. The speech that Nell gave in the courtroom proved that she had developed intellectually. While the language that she used was different, Nell still gave a good list of very abstract ideas that someone who is mentally retarded could not possibly comprehend. Nell understood why she was different saying that she was raised in a small world and knew small things unlike the large things found in the city of Charlotte, N.C. This proved that Nell was very capable of living by herself and taking care of herself.   Ã‚  Ã‚  Ã‚  Ã‚  3) The experts, in the beginning of the movie, said that Nell was not capable of making the correct judgments to make in the world by herself. They did not believe that Nell had the wisdom to make the correct choices in life situations. It seemed evident to me that Nell already possessed more than enough wisdom to make it on her own. After all, she basically took care of her crippled mother all by herself.   Ã‚  Ã‚  Ã‚  Ã‚  4) Nell is not mentally retarded. Nell was raised in seclusion with her twin sister and a crippled mother. The things that Nell learned were obtained socially from a woman that had loss the use of part of her body. The body language that Nell had learned were obviously learned from observing her mother. For an outside viewer Nell must have looked like she was mentally

Immigration is a new identity in Brick Lane by Monica Ali Essay

Monica Ali’s Brick Lane and Amulya Malladi’s Serving Crazy with Curry both portray the rising identity changes that occur with the first and second generation immigrants. Both novels reveal that when it comes to immigration, due to a difference in their surroundings and exposure to different cultures the second generation experiences a different setting which contributes to their developing identity. However, their developing identities becomes a contrast to the identities of the elder generation; thus creating a â€Å"culture clash†. â€Å"Culture Clash† is the act when one or more cultures are incorporated into one environment and as a result, traditions are challenged causing a disruption. First generation characters share the traits of being indignant of changing cultural values during immigration while the second generation are keen on conforming and leave their roots in exchange for freedom of being accepted into society. Through the characters and u se of language, both Monica Ali’s Brick Lane and Amulya Malladi’s Serving Crazy with Curry demonstrates how immigration creates a difference in identity that exists between the first and second generation. Coming to a completely different country, not knowing anyone at all, the first generation characters tend to be indignant. In both these novels the first generation immigrants express bitterness when adapting to different surrounding. Saroj Venturi from Serving Crazy with Curry, expresses her resentment towards the new culture, when she says â€Å"It was coming here, to this white pit that changed things between Avi and her. If they stayed in India, if only he’d wanted to stay, they would’ve been happy† (Malladi, 15). By comparing her new place of residence to a hole, Saroj feels trapped or exiled within this alien land, proving to be the motive for her resentment. Saroj displays her regret when she wishes to have stayed in India by saying that she would have been happier there thus providing a reason for her refusal to find happiness in her new environment. Similarly in Monica Ali’s novel Brick Lane, Chanu Ahmed was asked for permission by his wife, Nazee n, to attend English lessons and here he demonstrate the characteristic of resentment: Your going to be a mother†¦Will that not keep you busy enough?  And you can’t take a baby to college. Babies have to be fed; they have to have their bottoms cleaned. It’s not so simple as that. Just to go to college, like that. (Ali, 57) In this passage, Chanu rejects his wife’s idea of attending English classes and uses the excuse of his wife’s pregnancy and awaiting motherhood as a way of discouraging her. On top of that he also asks questions upon questions which may suggest bitterness towards her idea of going to school and attempting to fit in with society. Not only does Chanu discourage conform into society, he also discourages his daughters from becoming too westernized because he wanted to keep their Bengali culture rooted within themselves. Both Saroj from Serving Crazy with Curry and Chanu from Brick Lane being first generation immigrants demonstrate a common trait of resentment. Growing up in a place that is nothing like your place of origin, second generation immigrants convey acceptance while being raised in a different environment than their parents. The second generation immigrants identify themselves according to where they were born instead of their place of origin. Both Devi from Serving Crazy with Curry and Shahana Ahmed from Brick Lane, were both raised in a western environment and identify themselves as either â€Å"American† or â€Å"British†. Shahana presents her determination to fit into society when she states that â€Å"She wanted to have her lip pierced. This was latest thing. Last week she wanted to get a tattoo.† (Ali, 240). The act of getting piercings and tattoo’s are activities that are classified under western culture and when Shahana wishes to get them, it shows that she is eager to get involved and fit in with the society she is from. Getting a tattoo on her body, will represent the permanent residence of w estern culture within her life. Both Malladi and Ali portray the difference between resent and acceptance along with the idea of opposite traits enhancing the thought of conflict between generations. In both novels, Monica Ali and Amulya Malladi portray the fact that first  generation immigrants tend to retain their cultural values while the second generation are willing to exchange their roots for greater freedom. In Serving Crazy with Curry, Saroj Venturi wishes to instil Indian values within her children when she says, â€Å"Why couldn’t she learn to cook like all good Indian girls?† (Malladi, 19). She feels that her children do not know enough about their country of origin, and wishes to incorporate some Indian traditions into her daughters’ western lives so that they do not stray away from their Indian culture. Chanu from Brick Lane, faces a similar situation to Saroj as he also tries to incorporate Bengali culture into his daughters. Chanu uses language to discourage his daughters from becoming too westernized: â€Å"[†¦]that I am going to tie her up and cut her tongue. Tell the Memsahib that when I have skinned her [Shahana] alive she will not be looking so pleased with herself† (Ali, 162). Chanu refers to his daughter as a Memsahib which is a title used in colonial India as a form of respectful address for a prestigious woman. Chanu addresses his daughter, Shahana as a memsahib due to her behaviour such as acting snobbish and stubborn like a prestigious woman; qualities that he finds to be developed as a result of westernization. Chanu uses words such as â€Å"cut† and â€Å"skinned† to threaten his daughter so that she would behave. In contrast to the first generation, the second generation exchanges their cultural values for more freedom. In Serving Crazy with Curry, Devi Venturi gets a taste of her own freedoms in the area of dating: â€Å"And each time she [Saroj] snooped, she expected to find an unsuitable man lying naked in Devi’s bedroom, or worse, naked women† (Malladi, 19). The fact that Devi’s mother has to snoop around to find a naked man or women in Devi’s room shows her limits when it comes to controlling her daugh ters life and dating lifestyle. As well as the word â€Å"naked† represents Devi’s growing freedoms that she later uncover after certain stages she comes across within this western culture. From Brick Lane, Shahana has the newfound freedom of wearing what she wants. Having the freedom of choice in clothing Shahana chose to wear a skirt, which is an article of clothing that exposes the legs. When Shahana walks past a group of boys they turn around â€Å"She looked at them and cocked her head. Nazeen wished that Shahana had her trousers on† (Ali, 217). Choosing an article that exposes body parts strongly goes against the typical Bengali culture which proves that her choice in clothing is affected by the western society  that she lives in. Both authors use characters to inform that the first generation attempts to protect their cultural values while the second generation lets go of it, demonstrating their clashing ways of adjusting to changes due to immigration. Many people make the decision to leave their country of origin and immigrate to a foreign land due to the idea of finding success and living a better life. First generation immigrants have an eagerness to acquire success and the second generation has a lack of commitment. In Brick Lane, Chanu graduated with a degree in English literature and moves to London because he finds it to be the key to success. Chanu’s determination is shown when he says â€Å"Now I have to get the promotion† (Ali,36). The term promotion means to move to a higher, more important position than previously and Chanu’s desire to move onto the next level symbolizes his desire to be successful. Avi Venturi from Serving Crazy with Curry, deals with a similar situation as he learns that the military was not the right path for him when he says â€Å"This is all I am left with. The army gave me this and what else? No medal, no nothing.† (Malladi, 85). Avi feels he must obtain achievement, therefore he travels to San Francisco, when he was offered a job there, which leads him to be where he is now, a successful business man. Avi had the determination to be successful and fulfill his ambitions, unlike the second generation who lack this trait. The beginning of Serving Crazy with curry demonstrates Devi Venturi’s character as a failure: After Devi was laid off (yet again) a week ago, it started to dawn on her that she was not going to be able to change her life. Everything she ever wanted had become elusive and the decision to end her life, she realized, was not only a good decision, but her only option. (Malladi, 1) This quote in particular shows Devi’s lack of determination and commitment in achieving her goals to complete tasks and achieve what they want. In the first sentence, Malladi describes Devi’s failure being quite continuous when she states â€Å"yet again†. When she states that â€Å"she was not going to be able to change her life† (Malladi, 1) this displays Devi’s lack of commitment and  determination in accomplishing her goals because once she fails, she no longer has hope and decides that her fate will never change thus cancelling out any possibilities for improvement. The idea of not improving and changing what she thinks could be her fate leads Devi to think that the only choice she has is to end her life, which shows her lack of enthusiasm and determination to fulfill her ambitions and desires. Both novels portray the effect that immigration has on the identities of first and second generations immigrants. Authors, Monica Ali and Amulya Malladi use language to highlight the contrasting traits of characters and focus on the non-parallel connections between the first and second generation immigrants. When it comes to immigration diversity in the external environment contributes to the complex relationship between the two generations.

buy custom The Countrywide Financial Corporation essay

buy custom The Countrywide Financial Corporation essay The Countrywide Financial Corporation was founded in 1969 by Angelo Mozilo and David Loeb. Angelo Mozilo was the founder and chairman of the corporation. He is also thought to be behind the collapse of the company. In 1969, David Loeb founded the Countrywide in New York. Its intention was to create a nationwide lending firm specializing in mortgage loans. The company proceeded to open retail branches in California and by 1980 they had 40 branches in eight states. The company grew in leaps and bounds and saw it attain a loan origination of 2.2 million totaling to $408 million with 661 branches spread in 48 states. In the year 2008, the company was acquired by Bank of America for $4 billion. Its market value rose to $24 billion in 2006, but in 2007 it rapidly fell, when it emerged that the countrywide mortgages that had been during housing boom were overly risky and was faced with the risk of default. The company set pace on reforms that protected lenders from risks related to loan default. It also led to protection of borrowers with low income from exorbitant interest rates. Was the U.S. federal governments in 1932 intervention in the market for home ownership desirable? How did the creation of Fannie Mae in 1938, Ginnie Mae in 1968, and Freddie Mac in 1970 expand homeownership and shape lending practices at banks and other mortgage lending ?rms? Basing on the achievements realized it is clear that the intervention by the U.S government in the market was desirable. The creation of the Federal Home Loan Bank, for example, gave a provision on which lending to financial institutions is short-term prompting the desire for additional funds for home mortgages. The 1934 National Housing Act promoted homeownership. This is because it provided a system of insuring loans that protected default by borrowers. The creation of Fannie Mae facilitated secondary markets for mortgages. This was issued through guidelines of FHA program. This gave an opportunity to lenders who operated privately. This enabled private lenders to come up with a large count of FHA loans. Furthermore, due to the reason that loans could be sold in the secondary market. Another reason is that the borrower did not have to hold the loan until the loan term elapses. It also meant that another new loan could be created every other time the lender sold enormous loan bundles to secondary market inventors. Fannie Mae also bought mortgages that conventionally conformed to mortgages from the lenders. The reconstituting of Fannie Mae to trade publicly as a government sponsored enterprise saw its activities wiped out from the budget of the U.S federal government and moved its government insured portfolio, FHA mortgages, to corporation, which the government kept under total control. This was later known as Ginnie Mae. However, it remained in custody of Fannie Maes balance sheet. Th chartering of Freddie Mac facilitated the pooling of conforming loans, and came up with securities that were backed by mortgages (MBSs). These were sold as pooled shares on loan to the investors. The yield on interest for these security agencies lay between the U.S Treasury and AAA corporate. This obligation reflected low security risk. The MBSs development widened the secondary market for loans meant to be mortgaged. The reason being that the investors could buy portfolio of loan share other than buy intact portfolio loan. The Fannie Mae and Freddie Mac value to capital share in the market was equivalent to the MBSs obligations and debt guarantee of implicit government of the U.S. It is also important to note that, the Federal Charter demanded that they aid the residential mortgages through the secondary markets. It also obligated them to fund families whose incomes were low or moderate. They were also required to consider mortgage funding geographic distribution. This entailed finance on mortgage for geographic sectors that seemed undeserved. Another benefit that comes along with package of MBSs is that its mandate is to appraise the credit history of the borrower, and guidelines to establish the financial capability of the borrower in meeting the obligations of debt. This is important in establishing the probability of the borrower defaulting. This facilitated the growth of market of mortgage. Also the bolstering of loan program by the Veterans Administration led to zero down payment and reduced interest rates on loans. The housing burst of bubble in the year 2007, when the economy of the United Sates started weakening with the decline in demand for housing caused prices on homes to plummet. The appreciation in prices of homes almost coming to an end saw most of their properties go down. The equity position that was negative led to mortgage balance, which in turn led to fair market value of most of properties. The intervention, therefore, was desirable. This is because most of the issues that affected lending were deliberated on. It led to streamlining of mortgage business. It went along way in ensuring that the lenders were protected from risk that may arise. The borrowers too were not left behind as this ensured that no borrower was discriminated against based on race or geographical locations. The rate on interest towards the borrowers was also fully addressed by the enactment. Why did the U.S. Congress enact the Community Reinvestment Act, the Home Mortgage Disclosure Act, the Depository Institution Deregulation and Monetary Control Act, and the Housing and Community Development Act? Was this legislation effective in expanding homeownership? Did the governments promotion of subprime mortgages and high loan-to-value (LTV) subprime mortgages create additional risks for lenders and the holders of mortgage backed securities (MBSs) or collateralized debt obligations (CDOs)? In order to answer why the U.S Congress enacted the Community Reinvestment Act, it is important to note the reason for enactment. Sources indicates that the CRA and HMDA were enacted after the social activists group started pointing to the statistics that showed that FHA and lenders were involved in the systematic discrimination that was of race. This was directed to minority consumers who leaved in low income neighborhood. This practice was termed as redlining. The activist mobilized the Carter administration and Congress of the United States to come up with this enactment to curb this social injustice in lending and housing. The depository Institution Deregulation and monetary control addressed the concern on lenders who showed the sign of low income redlining of neighborhoods from their disclosures. However, the lenders defended this evil by pointing to the risks associated with loans made to low income earners, employment histories that were not stable, inadequate funds to enable them to make a down payment, or high debt to income levels. The acts, therefore, were enacted to address the concern by wiping out caps on interest rate and giving the lenders the opportunity to highly charge, or subprime rates to borrowers of higher risk. The Housing and Community development act of 1981 set goals for lenders borrowers of low income and gave an opportunity to FHA borrowers with credit records that are not perfect to access loans on mortgage with 90 to 95 percent LTVs. In the year 1995, the administration of Clinton increased the LTV subprime loans causing the CRA to increase home ownership for the Americans who in one way or another were not able to acquire mortgage loans through the conventional criteria of underwriting. The subprime mortgage created an additional risk to the lender. The reason being that-: the lender did not need the borrower to demonstrate how capable he is to repay the loan. The lender granted the borrower with low credit score, a high debt to income level, or a small down payment. The increased MBSs appetite on Wall Street, the brokers of mortgage expanded their net sales to entail requirements on documentation that was relaxed and limited or impaired the history on credit. This lending technique ensured that many borrowers accessed the loan. However, this could impact negatively on the lender incase the borrower defaulted in repaying. It is also important to know that the crisis of S L facilitated mortgage business unbundling. The origination of mortgage and servicing of loans led to a split. It led to pushing of most originations of mortgages into secondary markets as debt which is collateralized known as Collateralized Debt Obligations (CDOs). The ability of originators of mortgage to sell mortgages that were newly recorded as MBSs led to an increase of mortgage originators. The less strict nature of lending poses a risk on the side of the lender incase of default by the borrower. Buy custom The Countrywide Financial Corporation essay

How Presidents Have Used Their Power To Pardon

How Presidents Have Used Their Power To Pardon The President derives the power of pardon from Article II, Section 2 of the U.S. Constitution, which gives the president power to grant reprieves and pardons for offenses against the United States, except in cases of impeachment. A reprieve reduces the severity of a punishment, but the person remains guilty. A pardon removes both punishment and guilt, which is why pardons are more likely to be controversial. The process for obtaining a pardons begins with an application to the Department of Justice Office of the Pardon Attorney. The DOJ consults with other lawyers and judges for recommendations; the FBI runs a check on the applicant. After winnowing the applicants, the DOJ provides a list of recommendations to the office of the White House Counsel. Historical Pardons Historically, Presidents used the power to pardon to heal rifts in the national psyche. As President Bush said on 24 December 1982, When earlier wars have ended, Presidents have historically used their power to pardon to put bitterness behind us and look to the future. For example, George Washington pardoned leaders of the Whiskey Rebellion; James Madison pardoned Lafittes pirates after the War of 1812; Andrew Johnson pardoned Confederate soldiers after the Civil War; Harry Truman pardoned those who violated World War II Selective Service laws; and Jimmy Carter pardoned Vietnam War draft dodgers. The modern-day pardon, however, has taken a decidedly more political turn. And it may help its recipient find a job and regain the right to vote. Nixon In modern history, the most controversial pardon is probably the 1974 pardon of former President Richard Nixon, issued by President Gerald Ford. Ford assumed the presidency on 9 August 1974, the day after President Nixon resigned over Watergate, pending impeachment. Ford pardoned Nixon on 8 September 1974. Although Carter made a campaign issue of the Nixon pardon, in retrospect Fords action was brave (it was political suicide) and helped a divided nation begin to heal. Iran-Contra On 24 December 1992, President George Bush pardoned six Reagan administration officials involved in the Iran-Contra Affair: Elliott Abrams, Duane R. Clarridge, Alan Fiers, Clair George, National Security Adviser Robert C. Bud McFarlane and Secretary of Defense Caspar W. Weinberger. He compared their actions to those pardoned by Madison, Johnson, Truman and Carter: In many cases, the offenses pardoned by these Presidents were at least as serious as those I am pardoning today. Independent Counsel Lawrence E. Walsh was appointed in December 1986 to investigate the Iran/Contra affair; subsequently, Walsh brought charges against 14 people. Eleven were convicted; two convictions were overturned on appeal. Two were pardoned before trial, and one case was dismissed when the Bush Administration declined to declassify information necessary for trial.President Bush pardoned six Iran/Contra participants on 24 December 1992. Post-Trial Pardons Elliott Abrams   Pleaded guilty October 7, 1991, to two misdemeanor charges of withholding information from Congress about secret government efforts to support the Nicaraguan contra rebels during a ban on such aid. He was sentenced on November 15, 1991 to two years probation and 100 hours community service. The second President Bush appointed Abrams as Special Assistant to the President and Senior Director on the National Security Council for Near East and North African Affairs. Alan D. Fiers, Jr.   Pleaded guilty July 9, 1991, to two misdemeanor counts of withholding information from Congress about secret efforts to aid the Nicaraguan contras. He was sentenced on January 31, 1992 to one year probation and 100 hours community service. Pardoned. Clair E. George   Indicted September 6, 1991, on 10 counts of perjury, false statements and obstruction in connection with congressional and Grand Jury investigations. Georges trial on nine counts ended in a mistrial on August 26, 1992. Following a second trial on seven counts, George was found guilty December 9, 1992, of two felony charges of false statements and perjury before Congress. His sentencing hearing was February 18, 1993. Pardoned before sentencing occurred. Robert C. McFarlane   Pleaded guilty March 11, 1988, to four misdemeanor counts of withholding information from Congress. He was sentenced on March 3, 1989, to two years probation, $20,000 in fines and 200 hours community service. Pardoned. Pre-trial Pardons Duane R. Clarridge   Indicted November 26, 1991, on seven counts of perjury and false statements about a secret shipment of U.S. HAWK missiles to Iran. The maximum penalty for each count was five years in prison and $250,000 in fines. Trial date set for March 15, 1993. Pardoned. Caspar W. Weinberger   Indicted June 16, 1992, on five counts of obstruction, perjury and false statements in connection with congressional and Independent Counsel investigations of Iran/ contra. On September 29, the obstruction count was dismissed. On October 30, a second indictment was issued, charging one false statement count. The second indictment was dismissed December 11, leaving four counts remaining. The maximum penalty for each count was five years in prison and $250,000 in fines. Trial date set for January 5, 1993, trial date. Pardoned. Dismissal Joseph F. Fernandez   Indicted June 20, 1988 on five counts of conspiracy to defraud the United States, obstructing the inquiry of the Tower Commission and making false statements to government agencies. The case was dismissed in the District of Columbia for venue reasons on the motion of Independent Counsel. A four-count indictment was issued in the Eastern District of Virginia on April 24, 1989. The four-count case was dismissed November 24, 1989, after Attorney General Richard Thornburgh blocked the disclosure of classified information ruled relevant to the defense. The U.S. Court of Appeals for the Fourth Circuit in Richmond, Va., on September 6, 1990 upheld Judge Hiltons rulings under the Classified Information Procedures Act (CIPA). On October 12, 1990, the Attorney General filed a final declaration that he would not disclose the classified information. From the  Walsh Iran/Contra Report. In addition, Bush pardoned Edwin Cox Jr., whose family contributed nearly $200,000 to the Bush familys campaigns and to Republican campaign committees from 1980 to 2000, according to documents obtained by  CNN. Cox pleaded guilty to bank fraud in 1988, served six months in prison and paid $250,000 in fines. In addition, his father (Cox, Sr.) is a Bush Presidential Library trustee who contributed between $100,000 and $250,000 to the Bush Presidential Library. A complete  list of Bushs pardons  (1989-1992) President Clintons Pardons President Clintons most controversial pardon was of billionaire financier Marc Rich. His connection with the political and business elite of both parties demonstrates that the differences among those in power are less distinct than the differences between those in power and those out of power. For  example: After hiring prominent Republican lawyers during the Reagan and Bush administrations- Leonard Garment, former Nixon White House counsel, William Bradford Reynolds, once an official of the Reagan Justice Department, and Lewis Libby, now chief of staff to Vice President Richard Cheney- Rich hired a top Democratic lawyer, Jack Quinn, to give him direct access to Clinton. Quinn, former White House counsel, runs his law practice with Ed Gillespie, a key Bush adviser and former head of the GOP. In addition, Clinton pardoned Susan McDougal (Whitewater), former Housing Secretary Henry Cisneros (lied to FBI investigators about payments to his mistress) and  ex-CIA chief  John Deutch (forced out at the CIA when he contradicted White House claims that U.S. missile strikes on Iraq were effective).Review the  list of Clintons pardons  (1993-2000) President Bushs Pardons As the end of President Bushs term drew near, he had pardoned about half as many people as his prior two-term predecessors, Clinton and Ronald Reagan. Bush has issued pardons for many petty crimes committed decades in the past, ranging from possessing marijuana to moonshining. Just before Thanksgiving 2008,  President Bush pardoned 14 and commuted the sentence  of another two. This brought his pardon total to 171 and commutations total to eight. In one of the most high profile cases of his Administration, that of Scooter Libby, President Bush did not grant a pardon. He did, however, commute Libbys sentence. Another high-profile commuted sentences was that of  hip-hop musician John Forte, who was convicted in 2001 on drug smuggling charges. In Texas. Just  before Christmas, Bush pardoned Isaac Toussie who pleaded guilty in 2001 to using false documents to have mortgages insured by the Department of Housing and Urban Development, and in 2002 to mail fraud, admitting that he had persuaded officials in Suffolk County to overpay for land. Bush rescinded the pardon the next day after press reports revealed that his father, Robert Toussie, recently donated $30,800 to Republicans. Bush let  stand a pardon  issued for Alan Maiss, who had contributed $1,500 to the presidents 2004 re-election campaign; he served one year of probation. In 1995, Maiss failed to report a fellow gaming executives alleged ties to organized crime. Bush had  pardoned 19  and provided clemency for one. See a  list of pardons  and  commutations  granted by President George W. Bush.

Calculate MD5 Hashing for a File or String Using Delphi

Calculate MD5 Hashing for a File or String Using Delphi The MD5 Message-Digest Algorithm is a cryptographic hash function. MD5 is commonly used to check the integrity of files, like to make sure that a file has been unaltered. One example of this is when downloading a program online. If the software distributor gives out the MD5 hash of the file, you can produce the hash using Delphi and then compare the two values to make sure theyre the same. If theyre different, it means the file you downloaded is not the one you requested from the website, and therefore may be malicious. An MD5 hash value is 128-bits long but is typically read in its 32 digit hexadecimal  value. Finding the MD5 Hash Using Delphi Using Delphi, you can easily create a function to calculate the MD5 hash for any given file. All you need is included in the two units IdHashMessageDigest and idHash,  both of which are a part of  Indy. Heres the source code: uses IdHashMessageDigest, idHash; //returns MD5 has for a file function MD5(const fileName : string) : string; var   Ã‚  idmd5 : TIdHashMessageDigest5;   Ã‚  fs : TFileStream;   Ã‚  hash : T4x4LongWordRecord; begin   Ã‚  idmd5 : TIdHashMessageDigest5.Create;   Ã‚  fs : TFileStream.Create(fileName, fmOpenRead OR fmShareDenyWrite) ;   Ã‚  try   Ã‚  Ã‚  Ã‚  result : idmd5.AsHex(idmd5.HashValue(fs)) ;   Ã‚  finally   Ã‚  Ã‚  Ã‚  fs.Free;   Ã‚  Ã‚  Ã‚  idmd5.Free;   Ã‚  end; end; Other Ways to Generate the MD5 Checksum Apart from using Delphi are other ways you can find the MD5 checksum of a file. One method is to use Microsoft File Checksum Integrity Verifier. Its a free program that can be used only on the Windows OS. MD5 Hash Generator is a website that does something similar, but instead of producing the MD5 checksum of a file, it does so from any string of letters, symbols, or numbers that you put in the input box.

Multicultaralism Essay Example | Topics and Well Written Essays - 1250 words

Multicultaralism - Essay Example The various literary works analyzed in the later sections of this essay discusses the socio-political concept of multiculturalism as described by Samuel Selvon in The Lonely Londoners, and Hanif Kureishi in The Rainbow Sign and The Beautiful Launderette. This substantiates the fact that individuals from multicultural backgrounds, including the author himself, desperately crave for secure roots that secures them a place, a notion or a cultural identity of their own. The author’s narratives which take him back to a country of his origin is an attempt to forge a relationship with a land although alien to him secures him a root of his cultural origins thus giving him a sense of belonging and identity which is somehow lost in the multicultural milieu of his migrant country. The book ‘The Lonely Londoners’ by Sam Selvon, is based on the lives and journey of colored immigrants who migrated to the British Isles from West Indies in search of wealth and prosperity. It goes on to describe how the various characters in the story were exposed to racist remarks and discriminatory behavior at the hands of the locals. The story is told in creolized English to give an immigrant flavor to it. The apparent references to the color of these migrants who belong to a host of countries including Jamaica, Nigeria, and Trinidad suggest the discrimination of people belonging alien origins whereby the ‘blacks’ were often paid lower wages on account of their color – an obvious form of racial discrimination.... a relationship with a land although alien to him, secures him a root of his cultural origins thus giving him a sense of belonging and identity which is somehow lost in the multicultural milieu of his migrant country. The Lonely Londoners The book 'The Lonely Londoners' by Sam Selvon, is based on the lives and journey of colored immigrants who migrated to British Isles from West Indies in search of wealth and prosperity. It goes on to describe how the various characters in the story were exposed to racist remarks and discriminatory behavior at the hands of the locals. The story is told in creolised English to give an immigrant flavor to it. The apparent references to the color of these migrants who belong to a host of countries including Jamaica, Nigeria and Trinidad suggest the discrimination of people belonging alien origins whereby the 'blacks' were often paid lower wages on account of their color - an obvious form of racial discrimination. This issue is addressed by one of the characters Gallahad who has been looking for employment in the land and voices his beliefs: "Why the hell you can't be blue, or red or green, if you can't be white' You know is you that cause a lot of misery in the world. Is not me, you know, is you! I ain't do anything to infuriate the people and them, is you! Look at you, you so black and innocent, and this time you causing misery all over the world (Elizabeth, 2002, Pp.156)" The Rainbow Sign In the essay, The Rainbow Sign, the author Hanif Kureishi, describes the pain of a migrant and his view of the world which is blurred, confused and hybrid, and, rarely pure and complete. It describes the loss of being detached from one's roots and the feeling of being tucked away in an alien land but at the same time describing the joys of living