The Riskless Asset Rate Algorithm Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1679 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? It is known that the analysts use the treasury bills, notes or bonds rates, to define the riskless asset and its rate of return for modeling the capital market by the Capital Asset Pricing Model (CAPM), portfolio selection and performance analysis, using the Modern Portfolio Theory (MPT). Due to the fact that these securities do not have a continuous market in Romania and it cannot be followed day by day the evolution of their interest rate, I considered as a possible measure for the riskless security rate (a pure interest rate as Sharpe named it) the free risk interest of the Romanian financial market [William Sharpe (1970)]. By definition, the free risk asset is a financial security, consequently for a more accurate measure, I believe that the representative market for the financial market is the inter-banking market. Don’t waste time! Our writers will create an original "The Riskless Asset Rate Algorithm Finance Essay" essay for you Create order I defined several financial securities with equal rate of interest with BUBOR, for the borrowing free risk rate, and BUBID for the lending free risk rate, respectively the Romanian inter-banking market rates for lending or borrowing on a period starting with a day to a year. The daily values of these gathered interests in the Analyze Period (AP) (02.07.2001 -08.07.2003 respectively 2 years, each of 245 transaction days) determined the daily average value and the risk associated with every financial security, measured through variance of return. The free risk security rate of return for lending and respectively borrowing is situated in the risk-return space, on the vertical axe, in the points where the capital market line (CML) represented by two regression lines using the daily average rates of BUBOR and BUBID interests, intersects it. In order to point out the fact that the values are valid on the market, in this paper I compared, in the risk-return coordinates, free risk s ecurities thus determined, with currency securities EURO and DOLAR, and also with BET-C synthetic capital asset. I applied in several studies this method for calculating the free risk rate determined in the Romanian inter-banking market and all the results where accurate, providing dates confirmed by the subsequent market trend. . The riskless asset rate algorithm In order to measure the rikless security interest rate, or the pure interest, I will use the daily dates collected from the Romanian inter-banking market in the AP period and I will define financial synthetic assets, which will be the benchmark within the algorithm. To make the comparison of these rates with the similar rates on the secondary capital market, I will rely on capital market specifically analyze tools, expected return measured by the average rate of return and the risk measured by the variance or by the standard deviation of return. The financial securities which I will define will have the equal rate of return with the BUBID and BUBOR interest rates. The riskless financial security rate was determined throughout financial securities with equal return with the following rates: BUBOR TN, BUBOR 1W, BUBOR 1M, BUBOR 3M, BUBOR 6M, BUBOR 9M, BUBOR 12M and respectively BUBID TN, BUBID1W, BUBID 1M, BUBID 3M, BUBID 6M, BUBID 9M, BUBID 12M. In other words, I used the Roman ian inter-banking market rates for lending or borrowing on a period starting with a day to a year. These rates will represent the benchmark for the rikless rate. At the same time, we consider that the market provides a continuous possibility to lend and borrow, and BUBID ON and BUBOR ON are the representatives rates in the market. The inter-banking market is the representative market for the entire monetary market and includes the risk less security. In the same time, Sharpe defines the riskless asset as a financial security. The investors which will hold positive amounts will lend. Others will hold negative amounts; they will borrow. The total value of riskless securities issued by the borrowers will equal the total value purchased by the lenders. For the daily rates calculation BUBORt or BUBIDt, in the analyze period (AP) accordingly with the stock exchange transaction days, I used the following formula: _Ec. 1ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"1 where: is the a nnual rate of return on a day by day basis. Next, we define as a measure of the financial securities risk in the inter-banking market, the standard deviation of return of those assets. The same measure was used by Tobin. [Tobin (1967)]. In table 1-1 we can observe that these assets have a different value from zero risk. In order to determine the riskless asset average rate of return, we will go to make the next judgment. Free risk rate is actually the rate of return of a financial security which has, by definition, a zero risk. But for placing it in the risk-return coordinates, this security must have a zero standard deviation and the rate of return situated on CML (considering that the market is in equilibrium) similarly with the financial assets described previously (BUBOR and BUBID) . We also know that BUBID rate defines a passive interest rate, paid by a bank for the attracted deposits, but from the financial investor point of view, BUBID can be considered as the lending rate of return. The average BUBID rates will determine the riskless lending rate (RFRd). The average BUBOR rates can be calculated using the daily BUBOR rates, which are active interest rates, received by a bank for a granted credit, or for a financial investor BUBOR is the borrowing rate of return. The average BUBOR rates will determine the riskless borrowing rate (RFRi).In conclusion BUBOR and BUBID rates will be used as benchmark for the values RFRd and respectively RFRi. In the MPT, borrowing means the issuance of financial securities, whereas lending means purchasing those securities. Consequently the lender is an investor that purchases the riskfree asset, whereas the borrower is issuing the riskless security. In the lending case, we will consider the free risk asset as a deposit with an equal rate of return with the pure interest rate RFRd, and a zero standard deviation of return. In the issuing case, the free risk security is a borrowing with an estimated rate of return RFRi, and likewise the risk, measured by the standard deviation of return, has a zero value. Holding the riskless financial security, or purchasing it, means a positive proportion in the lender portfolio. Issuing a riskfree financial security represents a negative proportion in the borrower portfolio. Appling the previous described algorithm resulted the following dates presented in table 1-1. Table 1ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"1 Nr. Denomination Average RAP Annual average rate VarAP StDev Annual StDev 1 BUBOR ON 0,1001% 27,77% 0,000006% 0,0245% 0,38% 2 BUBOR TM 0,1001% 27,77% 0,000006% 0,0245% 0,38% 3 BUBOR 1W 0,1020% 28,36% 0,000006% 0,0238% 0,37% 4 BUBOR 1M 0,1028% 28,63% 0,000005% 0,0233% 0,36% 5 BUBOR 3M 0,1034% 28,80% 0,000006% 0,0241% 0,38% 6 BUBOR 6M 0,1039% 28,96% 0,000007% 0,0260% 0,41% 7 BUBOR 9M 0,1046% 29,20% 0,000008% 0,0277% 0,43% 8 BUBOR 12M 0,1053% 29,40% 0,000008% 0,0288% 0,45% RFRi 0,086% 23,44% 0,0000% 0,00% 1 BUBID ON 0,0771% 20,79% 0,000006% 0,0252% 0,40% 2 BUBID TM 0,0791% 21,38% 0,000005% 0,0220% 0,34% 3 BUBID 1W 0,0837% 22,74% 0,000005% 0,0222% 0,35% 4 BUBID 1M 0,0875% 23,90% 0,000005% 0,0225% 0,35% 5 BUBID 3M 0,0874% 23,86% 0,000006% 0,0238% 0,37% 5 BUBID 6M 0,0874% 23,86% 0,000007% 0,0259% 0,41% 7 BUBID 9M 0,0876% 23,94% 0,000007% 0,0267% 0,42% 8 BUBID 12M 0,0879% 24,01% 0,000008% 0,0278% 0,44% RFRd 0,068% 18,12% 0,0000% 0,00% Figure. 1ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"1 For the AP period, I applied all these considerations, and as a consequence, I determined for the lending riskless rate (RFRd) an average daily value 0,068%, and an annual value 18,12%. For the borrowing riskless rate (RFRi) I obtained a value of 0,086% for the daily average rate, and 23,44% for the annual value. The values and the calculation method can be observed in figure 1-1. To determine the RFRd value I constructed a regression line (CML) for the BUBOR daily average rates of return, and for RFRi value a second regression line for the BUBID daily average rates of return. The values of the riskfree rate are presented also in the equations of the two CML lines. _Ec.-1.2 In _Ec-1.2 is written the general equation for CML, where Rp is y from the figure 1.1, RFRi equals 0,086%, =66,21% and x is and similarly for the second line. . BET-C capital asset, and the currency assets EURO and DOLAR In order to realize a comparison of the free risk rate of return with other financial assets rates, I defined, in the same frame of risk-return coordinates, two currency assets: EURO and DOLAR. The rate of return of these two securities was determined by adding the return of the exchange rate evolution and the BUBID ON rate of interest (Ec. 2-1). In other words, we considered that the currency market is liquid, there are no transactions costs, and the financial securities find immediate the investment possibility. In our case, once there where transactions, DOLAR and EURO assets will be lend at a BUBID ON rate. Figure. 2ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"2 The daily rates of return of EURO and DOLAR where calculated as follows: _Ec. 2ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"2 where : is the daily rate ROL/EURO Table 2.1 shows the values for the rates of return and risk obtained for the AP period. Table 2ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"2 Nr. Denominatio n Average RAP Annual Average Rate VarAP StDev Annual StDev 1 EURO 0,16% 48,94% 0,0035% 0,59% 9,20% 2 DOLAR 0,10% 28,61% 0,0011% 0,33% 5,22% Figure. 2ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‹Å"3 Using the same method we defined the average rate of return and the risk of BET-C. For the analyze period AP, its average annual rate of return is 58,76%, and the annual standard deviation is 23,31%. Analyzing figure 3-1 and 1-1 we can conclude that the currency assets have a greater risk than the monetary assets BUBOR and BUBID, but in the same time less then BET-C, the representative for the capital market portfolio. Conclusion The method described above, for determining the riskless rate of return on a emerging capital market as the Romanian market is, provides a rapid and exact measure and can be successfully used in the portfolio analyze and selection and for evaluation of portfolio performance. The free risk rate method generates in the same time the lending riskless rate and the borrowing free risk rate, both used by the CAPM analysts for determining the efficient portfolio. We demonstrated using the risk-return space that the currency assets EURO and DOLAR have a greater return than the riskless asset and the monetary assets BUBOR and BUBID and less than BET-C. But in the same time they have a greater risk than the monetary assets and less than BET-C. That is in fact the case in any functioning capital market: the financial securities are safer, but with less expected return than the capital assets. This algorithm was applied for the capital market analyse I realised for the philosophe doctor deg ree thezis.[Adrian NiÃÆ'†¦Ãƒâ€šÃ‚ £u (2004)]. The results where realistic, and provided a verry good forecast of the Romanian capital market.

Synergetic Solutions Essays - 1298 Words

Week 4 Individual Assignment: Synergetic Solutions Susana Pena COM 530 Mark Busby Univ. of Phoenix February 5, 2013 * Describe at least three internal and external forces of change for Synergetic Solutions. * * * The external forces of change for Synergetic Solutions include technology, economic shocks, and competition. Technology is the one force that has caused for companies in the technology business to stay innovated and have skills be up to date with the needs of customers. Synergetic Solutions made the attempt to rely on a type of business that would promote slow and steady change and for employees to sustain their skills for a long period of time. Technology is not slow and steady and companies are†¦show more content†¦Prior to competition, Synergetic Solutions did not have a need to compete in its prior market (Robbins amp; Judge, 2011). * * What factors does a leader in this organization need to consider to implement a change strategy successfully? Describe at least two change models the leader might employ. Evaluate the communication necessary to implement change using these models. * * * The factors needing to consider was being able to create the production standards and operational efficiencies that would set high expectations so that changing the work for employees can demonstrate employee growth and the create a purpose that will bring greater rewards and incentives. The other factors are to figure out how the employees will be redesigned and have collaboration toward working together in learning the new skills and have team leaders have more involvement with guiding employees and having them vent out their concerns. * The two change models the leader might employ would be Kotter’s Eight Step Plan and Organizational Development. With the changes that are involved with this company, the leader of the this company is starting with understanding how the culture of technology has changed the business and knowing how products will have longevity in profitability or begin to downfall. For the first step under the eight step plan, the CEO has br ought a compelling reason of needing to change theShow MoreRelatedSynergetic Solutions1403 Words   |  6 Pageschange can be disastrous to an organization. Planned changed is always the best course. Internal and External Forces of Change at Synergetic Solutions Synergetic Solution faces three internal and external forces that may hamper change within the organization. Internal forces of change are: nature of the workforce, technology, and social trends. Synergetic Solutions task; remake the organization from a computer trader to a networking design firm. The first internal force of change is the natureRead MoreSynergetic Solutions Report1180 Words   |  5 PagesSynergetic Solutions Report Communications for Accountants COM/530 Synergetic Solutions Report Synergetic Solutions has grasped the reality that change is inevitable. Implementing change however is not as simple as recognizing the need for change. Synergetic Solutions understands the internal and external factors that have required a change to take place, and desire to improve operations but implementing the change can be difficult when met with resistance. Employees and leaders alike mustRead MoreSummary of Synergetic Solutions Simulation1295 Words   |  6 PagesSummary of Synergetic Solutions Simulation University of Phoenix Com/530 â€Æ' Learning how to run a business is never an exact science. Many variables affect decisions and outcomes both in the short and long term. In the simulation about Synergetic Solutions, an opportunity was presented where one must make a number of significant choices in a short period that would change the face of the company moving forward. Flexibility, foresight, and understanding were each critical elements necessaryRead MoreSynergetic Solutions Report Essay1037 Words   |  5 PagesSynergetic Solutions Report Virginia Grant COM/530 October 3, 2011 Professor Michael Ballif Synergetic Solutions Report This internal report will discuss the upcoming changes within Synergetic Solution, it will cover internal and external forces of change as well as factors that leaders need to consider when implementing change strategies. It will describe change models and the communication necessary to implement changes, following an examination of at least five resistance types . FinallyRead MoreEssay on Organizational Structure Simulation907 Words   |  4 PagesOrganizational Structure Simulation Synergetic Solutions Inc. University of Phoenix COM/530 Communication for Accountants Abstract This paper looks Synergetic Solutions Inc. A simulated organization facing some structure changes and what forces are at play. We look at what factors the Leader of the organization will consider to implement a successful change of strategy. We will describe at least two of the models the leader of the organization might employ. We willRead MoreForces That Drive Change Within An Organization1423 Words   |  6 Pagesforces that drive change in organizations generally and specifically within Synergetic Solutions. First considered are the factors which influence successfully implement change and models to manage organizational change. Considering the communications needed to implement change follows and sources of resistance to change. Next examined are strategies to manage resistance and resistance to change in the Synergetic Solutions context. Finally, presented are strategies to manage resistance. Change ForcesRead MoreOrganization Structure Simulation Essay2257 Words   |  10 Pagesof their organizations. This paper will explore several structures in organization design and organization design choices with emphasis on those that will best suit Synergetic Solutions, the company in the Organization Structure simulation. Company Background Synergetic Solutions is an information technology (IT) solutions company in the business of system integration—assembling and reselling leading computers brands. It has 300 employees most of whom are in the sales and service departmentsRead MoreChange Management1610 Words   |  7 Pagescultural system (Organizational Development Network ODN.com, 2004.) Several internal and external drivers have pushed Synergetic Solutions Inc., (SSI) in a direction to implement organizational change. To begin with there has been a stagnation of the systems integration market, industry standards for system building, selling and reselling and system networking solutions have made significant process improvements, and finally productivity and absenteeism are declining (Organizational StructureRead MoreChange Management Essay example1644 Words   |  7 Pagescultural system (Organizational Development Network ODN.com, 2004.) Several internal and external drivers have pushed Synergetic Solutions Inc., (SSI) in a direction to implement organizational change. To begin with there has been a stagnation of the systems integration market, industry standards for system building, selling and reselling and system networking solutions have made significant process improvements, and finally productivity and absenteeism are declining (Organizational StructureRead MoreReflection on Team Work1443 Words   |  6 Pagesgreat frustration. The word â€Å"conflict† is always related to anger, disunity and standstill. Being that as it may, when conflict exists, it generally indicates members’ commitment to the team goal, because they are trying to come up with the best solutions. So conflicts can in turn promote challenges, heighten individual regards to the issues, and increase individual efforts (Laura 2005). Being a coordinator, I took up the responsibility for turning the conflicts into beneficial eff ects. Looking back

The Vietnam War Free Essays

The Vietnam War Free Essays War is always a controversial topic whenever it is discussed in a political setting, or even a private conversation between friends. No War has ever been a more controversial than the Vietnam War. The Vietnam War was the longest War the nation has ever engaged in. We will write a custom essay sample on The Vietnam War or any similar topic only for you Order Now The United States entered the war in 1961 and pulled out in 1975. Although the death toll did not reach as high as the civil war, or either World War One, or World War two. The Nation still lost over fifty thousand soldiers in the deadly conflict. After World War two the French returned to controlling Indochina, but democracy in all areas of Indochina were not welcomed. Ho Chi Minh tried to downplay the tension to Washington, and show his respect for democracy, but a resistance was formed against the French. The French army and their American advisors seriously underestimated the Vietnamese Independence League and thought a victory would be easy. In 1953, President Eisenhower sent military aid to the French along with military advisors to Vietnam to prevent a Communist victory. However, a year later in 1954, around 10,000 French soldiers surrenders after a crucial battle at Dein Bein Phu at which around 8000 Viet Minh and 1500 French soldiers died. After this crucial loss the French decided to pull out completely after eight long and bitter years of fighting. The Americans at this point, had already invested billions of dollars in aid to the French and decide to enter and to step up their presence in Vietnam heavily. The U. S. main objective upon entering the war was to stop the spread of communism and to put a halt to the â€Å"domino† theory. In 1961, Soviet premier Nikita Khrushchev called the Vietnam War a ‘wars of national liberation’ and greatly supported communist in North Vietnam under Ho Chi Minh. Heavy volumes of U. S. roops began to arrive in South Vietnam in 1961, as well as economic aid. The Americans showed their support to the President Ngo Dinh Nheim and joined forces against the North Vietnamese and Viet Cong. By 1961, The United States were heavily involved with the war both in military and in economic support. John F. Kennedy became president and virtually inherited this new war. Kennedy s aw the Vietnam War as another by product of the Cold War. Kennedy became excited about using his military, and his â€Å"flexible response â€Å"military strategy. The Army began a new training program in counter insurgency called Special Forces. Like a kid with a new toy, Kennedy was eager to use his new elite, unconventional small armed tactical soldiers named the Green Berets in the jungles of Vietnam. â€Å"Despite American aid, the corrupt and repressive Diem regime installed by Eisenhower in 1954 was losing ground†. (Henretta, 830) The North Vietnamese had formed a revolutionary movement called the â€Å"National Liberation Front†. (Henretta, 830) The National Liberation Front (NLF) had their own specialized guerilla warfare soldiers known as the Vietcong, and they were fighting in their backyard. Once again, the Americans had not fully realized what they were up against. We had not learned the lesson from the French, and even with more troops on the ground and Special Forces Green Berets in the fight, the North Vietnamese were collecting one small victory after another. This was an unconventional type of warfare that America was not prepared for in more ways than one. When talking about guerilla warfare this is one rule that must be followed to have a successful guerilla campaign. When a smaller force is going up against a larger force, and are outnumbered and out gunned they must follow this rule to have any sort of real success. Guerilla warfare is primarily composed of shoot and move, hide and seek tactics. These tactics will work very well if you have support from the surrounding civilian populous. â€Å"The NLF’s guerilla forces-the Vietcong –found a receptive audience among peasants alienated by Diem’s strategic hamlet program, which uprooted whole villages and moved them to barbed -wire compounds . â€Å"(Henretta, 830) To further separate the natives from the American interest and Diem, militant Buddhist monks began protest in dramatic fashion. These protest included self- immolation and were captured on film by American television crews. Eventually Diem was overthrown and assassinated; this was not something that was anticipated by Kennedy. By this time, the United States had around 16,000 ‘advisors’ from helicopter crews to Green Berets. President Kennedy was at a point of putting full responsibility on South Vietnam for winning their own war and completely pulling out all U. S. aid. In a CBS interview â€Å"Kennedy had remarked that it was up to the South Vietnamese whether there would be won or lost. †(Henretta, 830) History will never know if Kennedy really would have pulled out of Vietnam like he hinted he had plans of doing so. On November 22, 1963 President Kennedy was shot and killed in Dallas Texas. Kennedy’s closest advisors argue that is exactly what he was planning on doing , but we will never know, and to some that argument downplays the stakes of what the Vietnam was really about and what it represented. â€Å"The United States was now engaged in a Global War against communism. Giving up in Vietnam would weaken America’s credibility. And under the prevailing domino theory, other pro-American states would topple after Vietnam’s loss. (Henretta, 830) Just as Kennedy inherited the Vietnam War from Eisenhower, Lyndon B Johnson had now inherited it from Kennedy. Although Kennedy may have been planning a full removal of U. S. troops and economic aid. However, it was almost a completly different war than what Kennedy first inherited. Johnson knew by this point that preventing the fall of South Vietnam would take a large scale military force that had not been committed to South Vietnam . This was not an option for Johnson who was a firm believer in global containment. In fact, this was his position upon taking office. I am not going to lose Vietnam; I am not going to be the president who saw Southeast Asia goes the way China went. ’(Henretta, 835) Johnson was a bit of a sneaky fellow; he kept his foreign affairs out of the limelight, and had a tendency to do the complete opposite of what he said he would do when dealing with the Vietnam War. He did not think the American populous would have the stomach, or the will to do what he ultimately thought was necessary. In 1964, Johnson ran on the pledge that there would be no escalation, and that â€Å"no American boys fighting Vietnams fight. (Henretta, 835) Well Johnson being a slick talker, said one thing and did another. In the summer of 1964, Johnson got reports that North Vietnamese torpedo boats had fired on the U. S. destroyer the Maddox. â€Å"In the first attack, on August 2, the damage inflicted was limited to a single bullet hole; a second, on August 4, later proved to be misread radar sightings. The specifics of the ‘attacks’ really did not matter; this is all Johnson needed to sensationalize. A classic strategy used through the military in U. S. military. Whether or not this was a necessary man ever to encourage U. S. involvement in Vietnam a debatable. None the less, Johnson’s request to â€Å"take all necessary measures to repel any armed attack against the forces of the United States and to prevent further aggression† was popularly voted in by Congress. The Gulf of Tonkin resolution gave President Johnson the authority to conduct operations in Vietnam as he saw fit. In 1964 Johnson had successfully put the elections behind him. Now he could really get to work on the American takeover in Vietnam. The escalation took on two forms in 1965 and really got rolling. The first form of escalation was the deployment of American troops. The Second form was the increased bombing of North Vietnam. In early 1965, U. S. Marines were patrolling the shores of Da Nang, their main objective was to protect an American air base there, but they would soon find themselves in fire fights with the enemy. â€Å"By 1966, more than 380,000 U. S. soldiers were stationed in Vietnam; by 1967, 485,000; and by 1968, 536,000. †(Henretta, 837) The request of more and more troops in Vietnam by General William Westmoreland, commander of the U. S. orces in Vietnam, was a fear that President Kennedy had right before he had died. His comparison of requesting more troops was compared to having another drink of alcohol. â€Å"The effect wears off then you have to take another. †(Henretta, 837) Other than mass amounts of troops being deployed in Vietnam, another type of escalation was in full swing. Operation rolling thunder was a bombing campaign against North Vietn am. The Hoi Chi Minth trail was an elaborate series of trails, bridges and shelters that stretched from North Vietnam, to Cambodia, all the way over to Laos in South Vietnam. This trail was a specific bombing target in operation rolling thunder. â€Å"800 tons a day for three and a half years. † (Henretta, 837) By 1968, a million tons had fallen on the North Vietnamese! Around twice that was dropped in the south trying to drive out the Vietcong fighters. Americans did not have a true sense of the enemy they were fighting. They thought that this incredible amount of firepower that was dropped on them would break there will. The American strategist also thought that a combination of severe bombing campaigns, mixed with the vast amount of U. S. troops on the ground would ultimately break the will of the Vietnamese and lead to surrender. This would prove to be the exact opposite at the war goes on. The Vietcong prove to be more resilient and adapt to American tactics. The Vietcong began moving their munitions underground and began constructing a network of tunnels. Operation rolling thunder herded the Vietcong’s will to fight as a result. The No rth Vietnamese proved that they were willing to loose everything to win this war. The Americans did not have the dame convictions in this particular conflict. This is a classic rule of warfare that the Americans arrogantly ignored because they thought they had significant fire power and numbers. This would take a toll on the average ‘grunt’ on day to day operations. The massive bombing campaigns took a horrific toll on the Vietnamese countryside. After on particular harsh and unusual engagement with the North Vietnamese a commanding officer was quoted as saying â€Å"it became necessary to destroy the town in order to save it. ’(Henretta, 837) This was the logic at the time for fighting guerilla warfare. This was not a conscript ‘grunt’s’ opinion, this was the report of a commanding officer. The bombing campaigns were thought to do more than just remove strategic targets. They were also used to reduce resources to the Vietcong, as well as reduce the amount of available jungle for them to hide in. Chemicals were also used to destroy vegetation. One Chemical known as ‘Agent Orange’ was released to kill vegetation. This chemical was later found to be highly toxic to not just plant life, but to humans as well. Many Vietnam veterans have had serious complications as a result of contact with ‘Agent Orange’. American policy makers and strategist, as well as Johnson’s advisors were left scratching their heads as the North Vietnamese proved them a worthy adversary. We could just not find a way to win the war. Or could we not find an easy way to win the war? Some argued that a reform in Saigon was necessary to turn the tide of the war. Others argued that America had not fully committed to winning this war with a full scale invasion of North Korea, and possibly a war with China. In my humble opinion, that is exactly what we needed to do if we were over there fighting and dying in the first place. Otherwise just pack the boys up and send them home. Johnson was ultimately hoping that we would win the war of attrition and hope that American firepower would be the ultimate deciding factor. Johnson was very confident in the beginning years of the Vietnam War. Steady consensus polls showed full American support of the Cold War and the escalation of Vietnam in 1965, and in 1966. However, these numbers began to shift, as the war raged on. American had become weary of seeing nightly news broadcast of American soldiers being killed and seriously wounded. Journalists began to write about a â€Å"credibility gap† and were accusing the Johnson Administration of shielding a lot of the truths of the war. The Johnson administration also began to take a lot of heat from the sheer cost of the war by American taxpayers. â€Å"The Vietnam war cost the taxpayers $27 billion dollars in 1967, pushing the national deficit from $9. 8 billion to $23 billion. †(Henretta, 839) This access of military spending pushed inflation upward. This would end up plaguing the U. S. economy well throughout the seventies. Out of this economic frustration antiwar demonstrations were on the up rise. At the core of the anti-war voice was a long standing pacifist group known as SANE. SANE, was one of the major protestors of nuclear testing done in the atmosphere in the 1950’s. They gained momentum and were joined by many sets of people. Student groups, clergy, and civil rights activist had all joined the anti-war movement. The movement spread like wildfire and they had grown by enough numbers to put on mass anti-war protest bringing out as many as 30,000 protestors at a time. â€Å"Although they were a diverse lot, participants in these rallies shared skepticism about U. S. policy in Vietnam. They charged variously that intervention was antithetical to American ideals; that an independent, anti-communist South Vietnam was unattainable; and that no American objective justified the suffering that was being inflicted on the Vietnamese people. †(Henretta, 839) The war raged on and so did the protest. President Johnson through a dice and gambled that the Vietnam War would be a relatively quick victory by the second escalation. There was no such victory to be had been won. Ultimately the unrest of the American people forced the U. S. to withdraw its troops from Vietnam. How to cite The Vietnam War, Papers

Diversity Resistance in Organizations

Question: Discuss about the Diversity Resistance in Organizations. Answer: Introduction: The underlining term workplace diversity implies the variety of differences among the people associated with the business organization. Within the entire process of business people belonging to different cultural attitude are intimately associated for providing effective service. This particular study has focused to discuss on how the diversity management has a major impact in building organizational reputation and recognition. The primary purpose of workplace diversity is to bring together the people of various ethnic backgrounds, religions and age groups. At the very initial stage most of the business organizations belonging to Australia intended to hire employees from the regional market. Currently the scenario has been changed. As per the current scenario it has been observed that business experts are willing to appoint employees as per their level of competency rather than their cultural and ethnic backgrounds. However, this particular study has focused to provide an in-depth overview on how business organizations after implementing diversity management at the workplace have reached the peak of success. Why has diversity given so much attention lately? Barak (2016) opined that most of the business organizations of Australia intended to follow a proper hierarchical structure in order to recruit an individual employees for a better position. The persons who had been recruited for the higher position should have the experience of several years. Otherwise, the employees are not allowed to hold the position of senior employees. However, as per the current business trend skills and competencies get enough values rather than seniority. Employees despite belonging to young age group can hold the position of a senior manager due to in-depth academic background as well as sufficient experience (Ciocirlan and Pettersson 2012). After the implementation of diversity management at the workplace people of different age group are getting opportunities for being associated within the business organization. The level of skill and competency has become the matter of major concern for business experts rather than their seniority level. On the other hand, Garnero, Kampelmann and Rycx (2014) stated that business organizations initially have spread their wings in the regional market. Therefore, diversity management was not necessary to be implemented at this specific time. The human resource managers intended to recruit those employees who belong to regional places. After the business expansion the organizational experts had to change their internal strategies and policies for gaining international fame and recognition. For an example, Woolworth has started their journey in the market of Australia. At that particular time human resource managers of Woolworths had only recruited regional employees. As per the current business scenario, Woolworths has already expanded their entire process of business by launching their products and services in multinational countries. While prevailing their business beyond going the regional market, Woolworths had to recruit people of different cultural attitudes and religious backgroun ds (Harvey and Allard 2015). In order to run a business process skill and competency is highly important for surviving at the workplace. Therefore, the human resource managers have focused to prioritise on the skills and efficiency of the employees rather than their cultural attitudes. Hendricks and Cope (2013) stated that in order to make an effective business promotion about products and services most of the business organizations should stay away from any kind of products as well as services. Target customers can be considered as one of the most effective factors due to which organization can achieve the peak of success. Customers are from different cultural backgrounds (Hughes and Stephens 2012). Therefore, customers tend to show their interest in purchasing products and services only when the organization would be able to service diversified products. Therefore, employees at the workplace need to maintain diversity based on which the organization can produce diversified products and services. For an example, The Iconic is one of the most recognizable retail organizations especially famous fashionable clothes. The product designers are very much skilful to design diversified products that can be accepted by the customers of various cultural and psychological ba ckgrounds (Klarsfeld et al. 2014). Therefore, workplace diversity is one of the most effective reasons due to which The Iconic is flexible to provide different kinds of fashionable clothes to the customers from multinational countries. Legas and Sims (2012) stated that workplace diversity is not possessed with some of its major drawbacks as well. The employees while interacting with the people of different cultural attitudes and backgrounds face numerous obstacles such as communication barrier, psychological barrier, and cultural as well as religious barrier and so on. Language is one of the most significant issue due to which employees fail to make a proper interaction with each other. Due to the linguistic barrier employee especially in the customer service department fails to exchange necessary information. Ultimately, the existing staffs fail to maintain a balance between product supply and demand (Munjuri and Maina 2013). However, language barrier is very much important in deciding the level of performance of the employees. On the other hand, psychological barrier is another major factor that hinders a business organization to maintain their service effectively. Due to the psychological barriers business manag ers are unable to make appropriate business strategy by maintaining participative leadership style at the workplace. As a result, the business experts have to face innumerable barriers to draw the attention of customers (Okoro and Washington 2012). Therefore, psychological barriers can play a significant role for maintaining the entire business process. From those specific perspectives, diversity in workplace becomes a major hindrance for running the business in international market. Podsiadlowski et al. (2013) has firmly opposed the point of view of previous scholars. As per the opinion of this specific author it has been observed that the mission of implementing diversity management at the workplace is vast and wide. Implementation of diversity at the workplace is the only way with the help of which the business experts can make market strategy and policy in a collective way. On the other hand, human resource managers become flexible to focus on skill and competency level of the employee rather than showing their attitudes towards religious as well as cultural biasness. What are the workforce diversity challenges and opportunities confronting new managers in the 21st century? In order to expand the entire business in the international market the business managers have to face innumerable challenges for being accustomed with the diversity cultures at the workplace. The challenges are as follows: Effective communication is highly important for providing effective service to the customers. Due to the lack of communication the customers have to wait for a long time for receiving a proper service. Therefore, communication is highly important for maintaining a business process systematically. It has been observed that business experts while dealing with the persons of several backgrounds and attitudes have to face communication problem (Rice 2015). As a result, the managers fail to share appropriate business strategy and policy at the workplace. Employees belong to different geographical backgrounds. Therefore, linguistic barrier is the matter of major obstacle to communicate with the employees properly. In order to overcome this kind of major communication issues, the managers of popular business organizations have decided to provide an effective training and development session to enhance the skill of communication. Training and development session helps the employees to overco me their linguistic barriers. Challenges in psychology and cultures: Psychological and cultural barrier has become one of the major factors due to which business managers face obstacle to run business organizations in the international market. For an example, The Iconic being an organization of fashionable clothes fails to draw the attention of those people who belong to orthodox backgrounds. On the other hand, while making the business decision regarding the product designs and market strategy the managers have collected different opinions from various employees (Saxena 2014). As a result, the business managers had to face major problems to take a proper decision. In order to overcome this kind of situation, company likes to apply some major strategies and policies to satisfy needs and demands of every single employee equally. The business managers generally decide to arrange a group discussion session where employees from several departments have to be present there. Every individual employee has the equal right to share opinion (Thomas 2012). Therefore, the session of group discussion employees of various departments get priority and response in sharing their views regarding business goal. Therefore, business managers get the scope to make a collective decision regarding business strategy and policy. In this kind of situation, employees do not show their level of dissatisfaction as they have been treated with equal respect and dignity. Religious barriers are the most effective problem due to which business mnagers fail to maintain an effective international organizational balance. With the dynamic progress of civilization, the customers expectations and behaviours are also changing with time. Therefore, business organizations have to render unique features in their products and services. It has been observed that due to the religious barriers organizations fail to render variety in their products and services. Wood et al. (2016) opined that employees belong to different religious backgrounds believe on different psychologies and attitudes. Therefore, employees may become a major hindrance in rendering the diversity in products. In order to overcome this kind of religious issues, the business organizations have decided to implement some major strategies and policies (Thomas 2012). The business experts have decided to provide an effective training to the employees for enhancing their knowledge and skills. With the help of this particular training and development process, the employees tend to evaluate their minds. As a result, organizations automatically, focus to render diversified products and service to grab the attention of customers from various geographical corners. Without focusing on product diversity, the business organizations can never expand their entire business process in the global market Challenges in business decision making: Business decision making is highly important to implement appropriate strategy and policy. In order to reach the peak of business success most of the business managers intend to implement an effective market strategy so that products can be promoted in various geographical areas. The role of employees in making an effective and appropriate decision for a business organization is highly important. In most of the cases, it has been observed that business experts fail to take proper decision due to the psychological barriers happening among the employees (Thomas 2012). People at the workplace like to express their various opinions before implementing a particular market strategy. In this kind of situation, business managers have to face difficulties to take an appropriate decision. In order to overcome this kind of challenges, most of the business managers like to follow autocratic form of leadership style. In this particular form of leadership style, employees get least opportunities t o share their own opinion. As a result, business managers like to impose their own decision on the employees. As a result, people do not have the scope to express their point of views. However, Barak (2016) stated that autocratic form of leadership style de-motivates the employees towards providing good services for meeting the business target. Therefore, most of the prestigious business organizations intend to follow democratic leadership style to encourage the employees towards reaching business goal. Conclusion: The entire study has focused to deal on how diversity within the organization is highly important for rendering the success of an organization in the domain of global market. At the very initial stage, business organization did not focus on maintaining workplace diversity. Belong to the 21st century most of the business organizations have preferred to implement diversity management at their workplace for being flexible in international market. Therefore, in the late centuries business organizations such as Woolworths, the Iconic have decided to follow workplace diversity to draw the attention of global customers. The study has critically analysed whether diversity at workplace is beneficial for the business organization or not. Various challenges faced by the new managers in implementing workforce diversity have been discussed in this particular study. Reference List: Barak, M.E.M., 2016.Managing diversity: Toward a globally inclusive workplace. Sage Publications. Ciocirlan, C. and Pettersson, C., 2012. Does workforce diversity matter in the fight against climate change? An analysis of Fortune 500 companies.Corporate Social Responsibility and Environmental Management,19(1), pp.47-62. Garnero, A., Kampelmann, S. and Rycx, F., 2014. The heterogeneous effects of workforce diversity on productivity, wages, and profits.Industrial Relations: A Journal of Economy and Society,53(3), pp.430-477. Harvey, C.P. and Allard, M., 2015.Understanding and managing diversity. Pearson. Hendricks, J.M. and Cope, V.C., 2013. Generational diversity: what nurse managers need to know.Journal of advanced nursing,69(3), pp.717-725. Hughes, C. and Stephens, D., 2012. Leveraging workforce diversity through a career development paradigm shift.Handbook of research on workforce diversity in a global society: Technologies and concepts, pp.262-272. Klarsfeld, A., Booysen, L.A., Ng, E., Roper, I. and Tatli, A. eds., 2014.9.78 E+ 12: Country Perspectives on Diversity and Equal Treatment. Edward Elgar Publishing. Legas, M. and Sims, C.H., 2012. Leveraging generational diversity in todays workplace.Online Journal for Workforce Education and Development,5(3), p.1. Munjuri, M.G. and Maina, R.M., 2013. Workforce Diversity Management and Employee Performance in the banking sector in Kenya.DBA Africa Management Review,3(1). Okoro, E.A. and Washington, M.C., 2012. Workforce diversity and organizational communication: Analysis of human capital performance and productivity.Journal of Diversity Management (Online),7(1), p.57. Podsiadlowski, A., Grschke, D., Kogler, M., Springer, C. and Van Der Zee, K., 2013. Managing a culturally diverse workforce: Diversity perspectives in organizations.International Journal of Intercultural Relations,37(2), pp.159-175. Rice, M.F., 2015.Diversity and public administration. ME Sharpe. Saxena, A., 2014. Workforce diversity: a key to improve productivity.Procedia Economics and Finance,11, pp.76-85. Thomas, K.M. ed., 2012.Diversity resistance in organizations. Psychology Press. Trenerry, B., Franklin, H. and Paradies, Y., 2012. Preventing race-based discrimination and supporting cultural diversity in the workplace: an evidence review: full report. Wood, J.M., Zeffane, R.M., Fromholtz, M., Wiesner, R., Morrison, R., Factor, A., McKeown, T., Schermerhorn, J.R., Hunt, J.G. and Osborn, R.N., 2016.Organisational behaviour: Core concepts and applications. John Wiley Sons Australia, Ltd.