Performance Appraisal Of HBL Commerce Essay

Performance Appraisal Of HBL Commerce Essay Performance Appraisal means to evaluate employees present performance and according to the standards given.At HBL performance appraisal is formal interaction between supervisor/ Manager and employees in an organized way. At HBL performance Appraisal conducted annually for all the employees. Appraisal is conducted by line manager and directors are appraised by CEO which further appraised by the chairman of the bank. If we look towards the branches of banks located in different areas, each branch manager evaluate the performance of their employees of their particular branch by keep on connecting with line manager which evaluate employees who conducted these performance evaluation. Line manager forward to regional office where he sends to human resource department where all appraisals are finalized and issued. HBL use KPIs or targets which they give annually to employees as a criteria such as business results, customers and employees) to appraise their employees and measure their employee performance by observation the achieved targets out of 100% which is standard or a benchmark that is quality of work, team work, goal fulfillments, performance, customer services, behavior with colleagues and supervisors/managers and growth. HBL process of performance appraisal system is they define their expectations, and then they measure or evaluate and provide feedback and hence their performance recorded. They judge their employee on achieving the annual targets which have provided them to achieve, even managers evaluate the performance of employee by behavior of employees and punctuality and how productive they are, how knowledgeable employees are or are they satisfying their employees by giving time to them and the way they dress up. HBL has assigned different weight ages out of 100, employee doing more than 100 or achieving target more than the benchmark that is an excellent job employee performing but if employee performing average discussion takes place between manager and its subordinate if employee becomes defensive, manager could easily sort out through his managerial skills. HR is responsible for training of supervisors to improve their appraisal skills. HBL use GRAPHICAL RATING SCALE METHOD or RANKING METHOD for appraising performance of an employee. HBLs Graphic Rating Scale method appraisal form contains three sheets; one is FORM B1, FORM B2, and FORM B3. Form B1: contains information about employees or the criteria through which employee should appraise. Form B2: contains two points through which they evaluate performance, i.e., FACTORS through which they determine if employee is productive or how the job is performing or the employee knows how to use technology he is being assessed and to see how responsive is an employee towards customers and motivated or dedicated to work and even employees are appraised through the factor of their own personality, i.e., how punctual employee is, behavior, personal hygiene. Even another criteria is determined on the B2 Form is the level of achievement s points being 4 the highest or 1 the least in form of grading A the highest which is 4 and D the lowest consider 1. FORM B3: This form contains the supervisor comments or evaluate the overall performance by given the grading(A,B,C,D) and appraise the comments in the form of agree/disagree then after evaluation is finalized in form signatures take by supervisor who conducted and send to the Hr department. HBL even use Ranking method to appraise their employees in which ranks employee from best to worst on the characteristics and skills. It is the most popular method, in which firstly, list all subordinates to be rated and in this method those names are not included which are well enough to rank. In ranking form indicates the employee measures on highest and lowest, then, choose the next highest and the next lowest. HBL also use Forced Distribution Method is also call bell curved. In this method you place given percentages of ratees into different performance categories. By forced distribution method as demonstrated by manager for example that manager must rate its employees under him according to following distribution: 10% low, 20% below average, 40%average, 20% above average, 10%high.. It reflects the normal curve, a small percentage of group is to be placed on (best and worst performers) larger percentages of ratees are placed toward the middle of the performance distribution. It is used for high executive level Vice president and above him in HBL.A separate bell curve is developed according to function/branch category/division and group. http://managementpocketbooks.files.wordpress.com/2011/07/image5.png MBO (Management By Objectives) also used by HBL in which objectives are told to the management and employees what targets they have to achieve. This method is easy to evaluate the performance of employees according to the goals and objectives have been told to them and how much they achieved. HBL use MBO to increase performance. MBO includes tracking and feedback  in the process to reach objectives and also for pay for performance. Steps of MBO: STEP1: Review organizational objectives HBLs objective is to make customer satisfy and to create value for them. STEP2: Set Objectives To earn profit for the organization STEP3: Monitor progress †¢Less complaints †¢Timely service is provided †¢Monthly revenue and cost STEP4: Evaluate performance How efficiently or effectively employee achieve his goals and targets Then his/ her appraised with the goals allocated as benchmark to achieve   STEP5: Give rewards †¢Promotion †¢Special salary increase †¢Cash price Problems HBL goes through while making performance appraisal are the employee participation, feedback-seeking and unclear goals and standards, regency effects. Promotable or UN -promotable appraisal interviews both conducted in HBL. PERFORMANCE MANAGEMENT SYSTEM http://www.da.ks.gov/pmp/images/circle.png Performance management is the process to identify, measure, and develop the performance of the employees in an organization. Basically we are trying to figure out how well employees perform and then to ultimately improve that performance level. When used correctly, performance management is a systematic analysis and measurement of worker performance (including communication of that assessment to the individual) that we use to improve performance over time. Performance management at HBL is a forward looking process for setting goals and regularly checking progress towards achieving those goals. At HBL it is a continual feedback process whereby the observed outputs are measured and compared with the desired goals. Performance management ensures that goals are consistently being met. Performance management at HBL is to evaluate employees to reach their goals and through which company performs better .In HBLs performance management model employees are given opportunities to work on harder projects, paired less-skilled employees with expert employees and employees can direct and make decisions. At HBL growth does not matter but performance does. Tools used by HBL for performance management are: Developmental goal setting Ongoing performance monitoring Ongoing feedback Coaching and support Performance appraisal Rewards, recognition, and compensation At HBL if employee performing good he gets an increment of 10% annually. They monthly evaluate the performance which is effective for the employees to work best. Managers and Supervisors keep on giving their constructive feedback to increase employees performance. HBL performance management system covers all employees under the function sales, operational, finance, Hr, administration. Purpose of Performance Management System To access the performance Basis for reward (Increment Bonus) Basis for promotion Placement Ascertain training and development needs The results of process measured by with the will help in measuring the performance, based on balanced measure approach and to standardize format across the organization, which is the ranking method or graphical rating method, it depends on employee performance on average, below average, low or good. HR performance Management System helps in increasing profit and Reducing Hr turnover.HR measured their satisfaction level through exit interview which can be good, excellent or poor. There is no involvement of stakeholders in ensuring performance management system. PROBLEMS AND RECOMMENDATIONS There are some flaws in the appraisal system of the bank. In appraisal form of the bank the supervisor enjoy great powers. No body can check his evaluation. The Appraise and appraiser does not sit before each other when supervisor evaluates the performance of the employees. An employee does not have the right to appeal against the supervisor on how he had been marked. . RECOMMENDATION The appraisal form should be based according to the Relevance material, Reliability Acceptability. The employees should have right to appeal against the supervisor if he thinks that he is wrongly evaluated.

The Unwritten History of Cave Paintings Essay -- Art History

Religious stories and scientific theories have tried for thousands of years to accurately date the formation of man. However, in the 1860s, a new art was discovered that changed the view of human creation forever. This new insight was cave painting. Cave painting is a form of prehistoric art that dates back hundreds of thousands of years. Analysts are unable to specify the reasoning behind these paintings of objects on cave walls, but many theories have been formulated to surmise the rational behind the art. Questions arise like, â€Å"why did man find a need to paint the walls of caves† and is this part of the foundation of the origin of human life as we know it? (Beacon) The ecumenical belief is rooted at history, cave paintings are man’s unwritten story of evolution. In the Upper Paleolithic period, from 40000 B.C. to 10000 B.C., paintings were created in over 300 caves across the globe. â€Å"There are two types of cave art: petroglyphs, which are pictures carved in stone and pictographs, which are pictures painted on stone† (Cave Painting). The art is usually found in hidden caves that are difficult to locate. For this reason, scientists have taken great interest in discovering why man wished to go to such extremes to produce the artistry. The graphics include mainly animals, geometric figures, and signs but rarely depict any relevance to humans. The visual communication gives valuable clues to the culture and beliefs of that era. The degree of preciseness of the images, being at such a high level, suggests that the art was not merely decorations that covered the bare surfaces of the caves, but were created for purpose. â€Å"The tonal qualities, and the ingenious use of surfaces in the rock, suggest depth and even a kin... ... However which way you interpret it, it still provides us with one thing: history. It has taught us the lives of our ancestry and the society in which they survived. The evolution from that era to today is astonishing. We see it simply in the development from our society daily. Their ideas combined with that overtime have created a new perspective for us about our own history. And before we can learn the history of other things, we must learn about ourselves first. Even through interpretation, we learned immensely from the simple paintings and carvings on a cave wall. It will continue to teach us generation after generation. But in the end, the controversies shouldn’t arise from the ambiguous paintings. If interpretation is all we have to go by, then that is what we do. And isn’t that what all history is? An interpretation of facts versus opinion.

GCSE English Coursework: The Crucible Essay -- Essay on The Crucible

GCSE English Coursework: The Crucible The Crucible. Arthur Miller, ‘The Crucible’ is a play based upon the events of Salem, Massachusetts in 1692. The story is about a religiously motivated town. The story is about a group of girls’ who are led by Abigail, who blamed witchcraft for their troubles. Being a strict Christian society the people of Salem believed in the girl’s stories. In conclusion this led into 20 people being falsely accused, and hung. The girl’s stories were easy to believe because of many reasons. Salem town was filled in a Puritanism belief. Everything they did was for God; they were doing God’s work. With this they believed that the bible was the ultimate answer to any question. When something went wrong they would automatically look into the bible and the teachings of God and anything it said they would abbey to it. John Proctor is accused of being a witch when he forgets his 10 commandments. He forgets to mention about not committing adultery. Proctor replies to this by saying, â€Å"I think it may be a small fault†, with Hale replying, â€Å"Theology, sir, is a fortress; no crack in a fortress may be accounted small†. Because they lived in a society that was strict and suspicious about everything because they were paranoid with fear. Hale suggests that because has forgot to mention adultery that Proctor doesn’t see it as a problem and will commit adultery. The people of Salem would swiftly blame the devil as when something bad or evil would happen. Towards the beginning of Act One we see this when Betty falls sick and Mrs Putnam says, â€Å"I’d not call it sick; the Devil’s touch is heavier than sick†, this shows us what a strongly religious society Salem was at this time. This makes the ... ...he liked her power. She likes to be in control. The society has a strong pride. With the people of Salem not confessing to the witchcraft. Because they didn’t admit they assumed that they did do the witchcraft, so the girl’s stories were easy to believe even more so. In conclusion the girl’s stories were easy to be believed because the society of Salem was an extremely religious. They were paranoid with fear, which made them venerable to small things: causing superstition. Another reason why the girl’s stories were easy to believe was because people wanted to believe them so they could end old grudges and claim land. People were scared to question the Bible because they would be accused of doing the Devil’s work and then hung. The Religious views about Christianity were taken too literally and as a punishment over 20 people were hung because of it.

Americas Cuban Conundrum

MARKETING 505 Assignment #2: Case 5-1 â€Å"America's Cuban Conundrum† ABSTRACT This paper analyzes the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. It will decide who benefits and who suffers from an embargo of this type and it explains the rationale behind the conclusion. It also presents a resolution to the trade situation between the U. S. and Cuba. Finally given the trade relations it determines what type of economic barriers would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Assignment #2: Case 5-1 â€Å"America's Cuban Conundrum† In 1996, President Bill Clinton signed the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The President’s actions came after Cuban MiGs shot down two U. S. civilian airplanes, killing the four Cuban-American who were on board. † (Green & Keegan, 2011) The Helms-Burton freezes the embargo against trade with and investment with Cu ba. It is a controversial act since it arouses a lot of negative attention on how the U. S. government is manipulating its power to impose its political views on other countries’ economies.The key issue -that prompted the EU to take the Helms-Burton dispute to the WTO -was mainly because they felt that it violated international rules dealing with trade. The EU had a dispute with the U. S. regarding testing agriculture, trade and investments and biotechnology issues which was brought to the attention of the WTO. It felt as if the United States was unlawfully exercising its jurisdiction extraterritorially, in that it was threatening to punish lawful activity such as trade, investment, and tourism carried out by the residents of independent countries. It is no exaggeration to say that U. S. olicy toward Cuba is now rejected and sharply criticized by the rest of the world. Other nations point out, moreover, that while America insists on maintaining its embargo and other pressures against Cuba because of the latter's human rights abuses, the fact is that Washington has close relations with–and extends Most Favored Nation treatment to–the People's Republic of China, Vietnam, Indonesia, and other states that are no more democratic than Cuba and have far worse human rights records, arguing that engagement, trade, and dialogue will do more to bring change in those countries than isolation. (Smith, 1998)It is obvious that the embargo affects a great number of people. To be all fair and neutral it would be necessary to highlight that to a certain extent, both countries are suffering and their benefits are minimal from this embargo. If it was to cease and somehow both countries came to an agreement and decided to put it all in the past and start from fresh, they would both benefit greatly. Production would increase and the producers on both countries would prosper. Cuban resources would be available to the U. S. Market and American producers would imp ort cost effective products that are not available in Cuba.An increase in capital from investors would make the economy run and prosper. A resolution to the trade situation between U. S. and Cuba represent the lifting of abolishment of the embargo. Castro’s regime and that of his successor, his brother Raul, have always talked a good anti-embargo but have not made the least effort to walk the talk, since this embargo may constitute the real reason of their continued hold on power since it gives an â€Å"antagonist† to the Cuban people, to the Cuban progress and it gives them an enemy to blame for the failure of Castro’s socialist revolution.In the U. S. there has been a lot of talk as well. President Obama was in favor of lifting of the embargo in 2004, ever since his views and actions changed, however he continued on implementing new policies that are in favor of establishing some type of relationship with the Cuban community. In 2004 President Obama who was th en a senator said: â€Å"I think it’s time for us to end the embargo in Cuba,† the then-Senate candidate said. And I think that we have to end it because if you think about what’s happening internationally our planet is shrinking, and our biggest foreign policy challenge — and it fits directly into the battle on terrorism and it fits into issues of trade and our economy — is how we make sure that other countries, in developing nations, are providing sustenance for their people, human rights for their people, a basic structure of government for their people that it’s stable and secure so that they can be part in a brighter future for the entire planet. And the Cuban embargo has failed to provide the source of raising standards of living and it has squeezed the innocents in Cuba,† Mr. Obama continued, â€Å"and utterly failed in the effort to overthrow Castro, who’s now have been there since I was born. So, it’s time for u s to acknowledge that that particular policy has failed. † (Speigel, 2009) But in 2008 he declared the opposite: â€Å"I will maintain the embargo,† Mr.Obama said in a speech in Miami on May 23, 2008. â€Å"It provides us with the leverage to present the regime with a clear choice: if you take significant steps toward democracy, beginning with the freeing of all political prisoners, we will take steps to begin normalizing relations. That’s the way to bring about real change in Cuba – through strong, smart and principled diplomacy. † (Speigel, 2009) For change to come about, a major event will have to take place.This situation seems like a non-negotiable on both sides where for the past 50 years they have agreed on disagreeing which isn’t the way to change the lives of all those people suffering and all those people that in one way or another are being affected negatively. In the unexpected event that trade relations resume between the U. S. a nd Cuba, some of economic barriers that would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Firms will always be alert to any risk or uncertainty that can bring about the loss of assets or revenue due to unstable legal processes or corruption.Seizure of Assets for example: â€Å"The ultimate threat a government action to dispossess a foreign company or investor. † (Green & Keegan, 2011. ) Nationalization, expropriation are eminent threats in country with a dictatorship such as Raoul Castro and Fidel Castro. There would have to be some specific amendments to the international law which will pretty much guarantee to the firms and investors, any assets invested in the Cuban Market. Firms and Investors would have to take extra steps in order to protect their selves and clearly recognize the levels of juridical power for Cuba and for the U. S. s well as proactively protect against corruption and piracy which could be a primary issue in Cuba, with a strong intellectual property protection strategy. Any and all can be done once the embargo is lifted, but this would be the first step to greater changes and reforms, without it everything is only assumptions. This paper analyzed the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. It decided who benefits and who suffers from an embargo of this type and it explained the rationale behind the conclusion. It also presents a resolution to the trade situation between the U.S. and Cuba. Finally it has determined what type of economic barriers would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Work Cited Green, M. , & Keegan, W. (2011). Global marketing. (6 ed. ). Upper Saddle River, NY: Prentice Hall. Speigel, L. (2009, April 17). Presiden obama-who once supported, but no opposes, lifting the embargo-seeks â€Å"new beginning† with cuba. Retrieved from http://abcnews. go. com/blogs/politics/2009/04/president-ob-19/ Smith, W. (1998). Our dysfunctional cuban embargo.. (Vol. 42).

Strategy and Serendipity: A Billion †Dollar Bonanza management case study

Mini Case 2: Strategy and Serendipity: A Billion – Dollar Bonanza Key Issue / Problem – Serendipity on how two modern drugs were discovered. – Realising a strategy turnout from a serendipity.Analysis – Researcher develop a new drug for the heart disease, as the drug were a cure for MED, the manager in Pfizer strategise this and make a this unintended results to into a blockbuster drug.Alternatives – Smart planning of changing a failure of a research into an alternative of curing another disease.Key decision to make – Although a drug discovered to treat drug disease became a failure, and turn out to solve MED problem, thus a new strategy to utilise it have to be made Capabilities – An unintended strategy, which were to cure the heart disease, turn out as s serendipity of curing a another dysfunction, and able to generate income of $3 billion dollar per year. Decision Criteria– The strategy of the unintended plan turn out to be a huge sum of turnover. Stakeholders – The investors, researchers, patients.Resources – The managers of Pfizer, reseachers, Implementation plan – To always have a alternative for a strategy which is still under testing. Vision / Mission / Objectives – To create a drug to overcome heart disease – To overcome a mistake, and make a seredipity out of it.Assumption – The smart team on how they able to strategise the need to the new drug for the MED and generate cash flow stream out of it. Discussion QuestionQuestion 1Serendipity is random from my point of view. Occurrence of this is not predicted or there might be not any proven statistic of the occurrence figure. Serendipity means a â€Å"happy accident† or â€Å"pleasant surprise†; a fortunate mistake. Specifically, the accident of finding something good or useful while not specifically searching for it.Question 2Strategic initiative is any activity a pursues to explore and develop a new product and process into new markets. In this case, it has been said to be an unrealised strategy for both Viagra and Cialis. The management initiated their new venture into a drug to overcome a heart disease, and it turn to be a cure for ME, where they have the same market, which is the medical drug supply, but for a different purpose. With its huge demand around the globe, these occurrences have become a serendipity for them.Question 3The model that explains Viagra/Cialis story is scenario planning. In this model, the managers envisions different what if scenario. In the analysis stage, they will be able to brainstorm and identify the possible future scenarios to anticipate plausible futures. This is what shows in the case study above, as the turnout from a strategy of marketing a heart disease drug was a failure, they turned it into a alternative for MED cure disease. The serendipity there is because the drug was able to use for MED. IF, the drug was a failure, then they ha ve must have already planned or strategize something to overcome the losses.Question 4No, the story of Viagra/Cialis will not inspire me to design a strategic management process. I will not be hoping for serendipity happens if my strategy fails, and the utilising the failure as an alternative. I will only plan for a strategy which is practical on that moment and prepare for possible future scenario using different simulations. If something happens as this case, then I would use this opportunity to make use of it and cover the loss for my failure, in a simple way saying it to hedge my position.

Commercialization of Agriculture Essay

Introduction The British rule had pronounced and profound economic impact on India. The various economic policies followed by the British led to the rapid transformation of India’s economy into a colonial economy whose nature and structure were determined by needs of the British economy. One important aspect of British economic policy was commercialization of agriculture. Commercialization of agriculture which can be defined as a process where peasants start producing primarily for sale in distant markets, rather than to meet their own need for food or to sell in local markets, (Roy, 2007) has taken place at different times in response to different stimuli. In the Indian context though a number of commercial crops such as cotton, tobacco and sugarcane were grown fairly extensively even before the advent of British rule (Habib, 1982), since land revenue had to be paid mostly in cash and the prices of these crops were much higher at that time relative to the prices of foodgrains, however, commercialization of agriculture at that time corresponded only to the requirements of traditional â€â€"revenue economy‘ in which the main form of revenue payable happened to be an indistinguishable mix of tax, tribute and rent (Raj, 1985). No doubt the need to pay revenue in cash was the initial compelling force for the marketing of agricultural produce, the large surpluses so extracted from agriculture, without a flow of goods and services in the reverse direction in exchange, was basically an impediment to further commercialization (Raj, 1985). Thus, commercialization of agriculture in pre-British period existed only in its embryonic form. In true sense, therefore, agriculture of India got a commercial orientation during the British rule. Industrialization in Europe and Commercialization of Agriculture in India The commercialization of Indian Agriculture took place not to feed the industries of India because India was far behind in industrial development as compared to Britain, France, Belgium and many other European countries of eighteenth century. The commercialization of Indian Agriculture was done primarily to feed the British industries that it was taken up and achieved only in cases-of those agricultural products which were either needed by the  British industries or could fetch cash commercial gain to the British in the European or American market. For example, several efforts were made to increase the production of cotton in India to provide raw and good quality cotton to the cotton-textile industries of Britain which were growing fast after the Industrial Revolution in Britain. Therefore, cotton growing area increase in India and its production increased manifold with gradual lapse of time. Indigo and more than that, tea and coffee plantation were encouraged in India because these could get commercial market abroad. It was beneficial to the British planters, traders and manufacturers, who were provided with opportunity to make huge profits by getting the commercialized agricultural products at, throw away prices. The commercialization of Indian agriculture also partly benefited Indian traders and money lenders who made huge fortunes by working as middlemen for the British. This regard they acted as conduits delivering the products from peasants to the British company from where it was taken abroad. Though markets and trade in agricultural goods existed in quite organized forms and on a large scale in the pre-British period but the market expansion in the British period marked a qualitative and quantitative break. According to Tirthankar Roy, there were three main qualitative changes. â€â€"First, before the British rule, product markets were constrained and subject to imperfections, given multiplicity of weights and measures, backward and risky transportation systems, and extensive use of barter. British rule and the railways weakened these constraints. By doing so, it enabled closer integration of global, regional and local markets. Second, from the time of industrial revolution, a new international specialization began to emerge as a result of trade. India specialized, in agricultural exports. Third, in turn, changes in the product market induced changes in land, labor, and credit markets‘ (Roy, 2007). The American Civil War also indirectly encouraged commercialization of agriculture in India: the British cotton demand was diverted to India. The demand of cotton was maintained even after the civil war ceased because of the rise of cotton textile industries in India. The commercialization of India agriculture was initiated in India by the British through their direct and indirect policies and activities. Firstly, the new land tenure system introduced in form of permanent settlement and Ryotwari Settlement had made agricultural land a freely exchangeable commodity. The Permanent settlement by giving ownership right to the zamindars created a class of wealthy landlords; they could make use of this ownership right by sale or purchase of land. Secondly, the agriculture which had been way of life rather than a business enterprise now began to be practiced for sale in national and international market. Thirdly, the political unity established by the British and the resulted in rise of the unified national market. Fourthly, the spread of money economy replaced the barter and agricultural goods became market items and the replacement of custom and tradition by competition and contract. Finally, the British policy of one way free trade also acted as sufficient encouraging factor for commercialization as the manufactured items in textile, jute etc. could find free entry in Indian markets, where as the manufactured goods did not have similar free access to European markets. Impact of Commercialization on Indian Agriculture It is interesting to note that though there is little controversy with regard to the role of British in initiating and promoting the forces which led to the commercialization of Indian agriculture, however, the nature of commercialization and its impact on the Indian peasantry had been very controversial issue, both during and after the British rule. To the nationalists, it was not out of the free will of the cultivators– commercialization of agriculture was forced and artificial (Dutt, 1906). This was so because the high pitch of revenue demand in cash compelled the cultivators to sell large portion of the produce of their fields keeping an insufficient stock for their own consumption. On the other hand the colonial bureaucracy argued that it was the market force rather than the pressure of land revenue that was drawing the farmers into the business of production for the market. The commercial crops were more profitable and this economic incentive led them to produce for sale and export, thus making it possible for them to increase per capita income. Furthermore, the imperialist historiography and the colonial bureaucracy viewed commercialization of  agriculture, the expansion of trade in agricultural products and the rising agricultural prices as an indication of the â€â€"growing prosperity of the peasantry.‘ (Satyanarayana, 2005). On the other hand anti-imperialist historiography (both nationalist and radical Marxist) emphasizing the negative impact of commercialization of agriculture and the integration implied that agricultural production in India was to be determined by imperial preferences and needs (Bhatia, 1967). Moreover, other historians following the neo-classical economic theory or with anti-imperialistic orientations (Marxists and non Marxists) have extended their support to either of the two. The commercialization of agriculture was a forced and artificial process for the majority of Indian peasants. It was introduced under coercion of the British and not out of the incentive of peasantry at large. The peasantry went for cultivation of commercial crops under duress. Most importantly the life of the Indian peasant was tied to the highly fluctuating national and international market. He was no longer a deciding factor in agricultural practices. Further, by making agricultural land a tradable commodity, the peasant lost his security feeling. High land revenue demand forced him to take loan from the money lender at high interest rates. Failure to pay debt in time meant loss of land to the money lender at high interest rates. It led to land alienation and increase in the number of agricultural laborers whose conditions especially in plantation industry was pathetic. He had to pay the land revenue due to the British government in time. Moreover, he had to grow commercial crop on a specified tract of his land under the oppression of planters. Also, Indian money lenders advanced Cash advances to the farmers to cultivate the commercial crops and if the peasants failed to pay him back in time, the land of peasants came under ownership of moneylenders. The poor peasant was forced to sell his produce just after harvest at whatever prices he could get. This placed him at the money of the grain merchant, who was in a position to dictate terms and who purchased his produced at much less than the market price. It also resulted in reduced area under cultivation of food crops. The net result of this change was that Indian failed to produce even that much food  crops which could provide even two square meals a day to its population. The misery was further enhanced became the population of India was increasing every year, fragmentation of land was taking place because of the increasing pressure on land and modern techniques of agricultural production were not introduced in India. While the upper class and British industries benefited-from it, the Indian peasants’ life was tied to remote international market. It affected adversely the poor people of India; it became difficult for them to get even sufficient food. This becomes ample from the fact that ill 1880 India had a surplus of foodstuffs to the extent of five million tons and by 1945 it had a deficit of 10 million tons. George Byn records that from 1893-94 to 1945-46, the production of commercial crops increased by 85 percent and that of food crops fell by 7 percent. This had a devastating effect on the rural economy and often took the shape of famines. Bhatia believes that the earlier famines were localized, and it was only after 1860, during the British rule, that famine came to signify general shortage of foodgrains in the country. There were approximately 25 major famines spread through states such as Tamil Nadu in the south, and Bihar and Bengal in the east during the latter half of the 19th century. Great Depression and Indian Agriculture A global economic depression broke out in 1929. However, the causes were more diverse and multi-pronged, with the decrease in costs and economic deflation of the post-war period being one of the main reasons. This deflation was caused by excessive manufacturing activities during the First World War. As a result, huge stocks of goods were piled up without being used. Wartime expenditure had reduced the countries of Europe to a state of heavy debt (Manikumra, 2003). With the outbreak of the Second World War, India was required to provide the resources for financing the war expenditures, which amounted to nearly 38 billion rupees from 194146. Government attached excessive importance in maintaining war related production, as a result of which a comprehensive system of supplying food to the urban areas at controlled prices was put in place. The rural poor were not viewed as being essential to the war effort and so the main burden of war financing was  passed on to them. With the Great Depression, agricultural prices worldwide started falling earlier than industrial prices. As a result, the manufacturing-agriculture terms of trade turned sharply against agriculture. A substantial redistribution took place from the mass of rural producers to urban classes. Thus the combination of the long term trend of decline in per head production of foodgrains, a rise in per head production of exportable and the effects of deteriorating terms of trade created a set of pre-famine conditions in the sense that any substantial shock to the economic system under these circumstances was almost certain to precipitate famine in the absence of countervailing intervention. Taxes were jacked up and deficit financing by printing money was resorted to and money supply is estimated to have raised five folds in the four years from 1940.As a result there was a war boom and profit inflation. Rice price started an upward spiral from the last quarter of 1941, doubled within a year a nd quadrupled within eighteen months. Also, the colonial government from the beginning strongly pushed exportable production by forcible cultivation of poppy in the early 19th century and export of opium to China, culminating in the infamous opium wars and indigo mutiny. With time overt force became less necessary as the pressure of revenue demand transmitted down to the peasant cultivators as the pressure of rental demand and in the case of landlords paying the revenue; compelled peasants to grow more commercial crops to sell and to commercialize food production itself. Famine: Indian Agriculture strained by commercialization and Great Depression The fall in prices had been higher in India compared to the rest of the world, the price of commodities manufactured in India rose dramatically compared to imports from the United  Kingdom or some other country in the world. The Great Depression had a terrible impact on the Indian farmer. While there was a steady, uninhibited increase in land rent, the value of the agricultural produce had come down  to alarming levels. Therefore, having incurred heavy losses, the farmer was compelled to sell off gold and silver ornaments in his possession in order to pay the land rent and other taxes. Farmers who were cultivating food crops had earlier moved over to cash crop cultivation in large numbers to meet the demands of the mills in the United Kingdom. Now, they were crippled as they were unable to sell their products in India due to the high prices; nor could they export the commodities to the United Kingdom which had recently adopted a protective policy prohibiting imports from India. An ex ante excess of investment over savings was converted to equality through forced savings extracted via food price inflation from the rural population. The consumption of food was then estimated at one and a half pound per individual and in 1945 it was 1 pound. Nearly thirty percent of the Indian population was estimated to be suffering from chronic malnutrition and under nutrition. Thus, the commercialization of agriculture in India by the British was also one of the important causes of the impoverishment of the Indian people. This resulted in a combination of famines and epidemics claiming around 2.7 to 3.1 million lives. The most cited example is that of ―Bengal Faminesâ€â€". Romesh Chunder Dutt argued as early as 1900, and present-day scholars such as Amartya Sen agree, that some historic famines were a product of both uneven rainfall and British economic and administrative policies, which since 1857 had led to the seizure and conversion of local farmland to foreign-owned plantations, restrictions on internal trade, heavy taxation of Indian citizens to support British. The Great Famine of 1876–78, in which 6.1 million to 10.3 million people died and the Indian famine of 1899–1900, in which 1.25 to 10 million people died were the most destructive famines. The Bengal Famine resulted in approximately 3 million  deaths. Generally the estimates are between 1.5 and 4 million, considering death due to starvation, malnutrition and disease, out of Bengal’s 60.3 million populations. Half of the victims would have died from disease after food became available in December 1943. Generally it is thought that there was serious decrease in food production during that time which is coupled with continuing export of grain. However according to Amartya Sen, there was no significant decrease in food production in 1943 (in fact food production  was higher compared to 1941). The highest mortality was not in previously very poor groups, but among artisans and small traders whose income vanished when people spent all they had on food and did not employ cobblers, carpenters, etc. The famine also caused major economic and social disruption, ruining millions of families. Conclusion Since colonial times, opinions would seem to have been divided between â€â€"optimists‘, for whom commercialization marked progress and a growing prosperity for all; â€â€"pessimists‘, for whom it marked regress into deepening class stratification and mass pauperization; and â€â€"skeptics‘ who held that it made very little difference and that its impact was largely absorbed by pre-existing structures of wealth accumulation and power on the land. However, capitalization in the 21 st century is said to create similar impact as colonial times, the only difference being that the later one was forced through oppressive policies, whereas the former would be market driven. The farmer in his choice of crops attached greater importance to market demand and price than o other factors. Capitalism has mixed impacts on Indian agriculture. While it brings about liberalization and globalization that leads to trans-border availability of agricultural products all over the world, it breaks the economic self-sufficiency in India leading to greater dependency on  market forces. Export of food products is one of the major reasons for inflation in India, it reduces the availability of agricultural products in India, increasing the demand and thus escalating the prices. Trade and liberalization has also made Indian agriculture vulnerable to global crisis. However, it provides for a national economy and also brought about regional specialization of crops on an efficient basis. Hence, it is essential to learn from the lessons in the past and formulate policies to mitigate the negative impacts on Indian agriculture while being globally connected and liberalized. References Atchi Reddy, M., The Commercialization of Agriculture in Nellore District: Effects on Wages, Employment and Tenancy. † in Essays on the Commercialization of Indian Agriculture, editors et. al. K.N.Raj, 163-83. Delhi: Oxford University Press, 1985. Avineri, Shlomo editor. Karl Marx on Colonialism and Modernization. Garden City: 1969. Barber, William. British Economic Thought and India 1600-1858: A Study in the History of Development Economics. Oxford: Oxford University Press, 1975. Bardhan, Pranab K. Land, Labor, and Rural Poverty: Essays in Development Economics. Delhi: Oxford University Press, 1984. Bhatia, B.M. Famines in India, 1860-1965. New York (1967) Beaud, Michel. A History of Capitalism, 1500-1980. New York: Monthly Review Press, 1983. Bernanke, B.S. Essays on the Great Depression. Princeton University Press, Princeton, 2000 Bharadwaj, Krishna. â€Å"A View on Commercialisation in Indian Agriculture and the Development of Capitalism.† The Journal of Peasant Studies 12, no. 4 (1985): 7-25. Chaudhuri, Binay Bhushan. â€Å"The Process of Agricultural Commercialisation in Eastern India During British Rule:A Reconsideration of the Nations of ‘Forced Commercialisation’ and ‘Dependent Peasantry’.† In Meanings in Agriculture: Essays in South Asian History and Economics, Editor Peter Robb, 71-91. New Delhi: Oxford University Press, 1996. Dutt, R. C. Economic History of India in the Victorian Age, 1837-1901. London (1906). Greenough, Paul R. Prosperity and Misery in Modern Bengal: The Famine of 1943-1944. New York: Oxford University Press, 1982. Habib, Irfan (ed.), The Cambridge Economic History of India, Vol. 1, c.1200-c.1757 New Delhi: Orient Longman (1982). Ludden, David. â€Å"Agrarian Commercialism in Eighteenth Century South India: Evidence From the 1823 Tirunelveli Census.† Indian Economic and Social History Review 25, no. 4 (1988): 493-520. ———. â€Å"The Terms of Ryotwari Praxis: Changing Property Relations Among Mirasidars in the Tinnevelly District.† In Studies in South India: An Anthology of Recent Research and Critical Scholarship, Editor Pauline Kolenda, pp.151-70. Madras: New Era Publications and the American Institute of Indian Studies, 1985. Ludden, David (editor). Agricultural Production and Indian History. Delhi: Oxford University Press, 1994. Manikumar, K. A. A Colonial Economy in the Great Depression, Madras (1929–1937). Orient Blackswan. (2003). ISBN 978-81-250-2456-9. Mishra, Satish Chandra. â€Å"Commercialisation, Peasant Differentiation and Merchant Capital in Late Nineteenth Century Bombay and Punjab.† Journal of Peasant Studies 10, no. 1 (1982). Mokyr, Joel editor. The British Industrial Revolution: An Economic Perspective. Boulder: Westview Press, 1993. Naoroji, Dadabhai. Poverty and British Rule in India. 1901. http://www.historydiscussion.net/british-india/expansion-and-commercialization-ofagriculture-during-the-british-rule-in-india/640 (accessed on September 4th, 2014) Raj, K.N. Neeladari Bhattacharya, Sumit Guha, and Shakti Padhi (ed.), Essays on Commercialization of Agriculture in India. Delhi: Oxford University Press, (1985), p. viii. Rajasekhar, D. â€Å"Commercialization of Agriculture and Changes in Distribution of Land Ownership in Kurnool District of Andhra 9C.1900-1950).† The South Indian Economy: Agrarian Change, Industrial Structure, and State Policy, C1914-1947, 78-119. Delhi: Oxford University Press, 1991. Ray, Rajat Kanta. â€Å"The Bazaar: Changing Structural Characteristics in the Indigenous Section of the Indian Economy Before and After the Great Depression.† The Indian Economic and Social History Review 25, no. (3) (1988): pp. 263-318. Robb, Peter. â€Å"Peasant’ Choices? Indian Agriculture and the Limits of Commercialization in Nineteenth-Century Bihar.† The Economic History Review XLV, no. 1 (1992). Roy, Tirthankar. The Economic History of India, 1857-1947. New Delhi: Oxford University Press, second edition (2007), p. 124. Satyananarayana A., Expansion of Commodity Production and Agrarian Market. New Delhi: Oxford University Press, second edition (2005), p. 182. Satyasai, K. J. S., and K. U. Viswanathan. â€Å"Commercialisation and Diversification of Indian Agriculture.† Economic and Political Weekly 31, no. 45-46 (1996): 3027-28. Sen, Amartya K. Poverty and Famines: An Essay in Entitlement and Deprivation. New York: Oxford University Press, 1981. Shiva, Vandana. Ecology and the Politics of Survival: Conflicts Over Natural Resources in India. Newbury Park, CA: Sage Publications, 1991. Tilly, Louise A. â€Å"Food Entitlement, Famine, and Conflict.† In Hunger and History: The Impact of Changing Food Productionand Consumption Patterns on Society, Editors Robert I. Rotberg and Theodore K. Rabb, 135-52. Cambridge: Cambridge University Press, 1983. Wakimura, Kohei. The Indian Economy and Disasters during the Late Nineteenth Century: Problems of Interpretation of Colonial Economy. http://srch.slav.hokudai.ac.jp/rp/publications/no10/10-06_Wakimura.pdf (accessed on September 6th, 2014) Washbrook, David. â€Å"The Commercialization of Agriculture in Colonial India: Production, Subsistence and Reproduction in the ‘Dry South’, C. 1870-1930.† Modern Asian Studies 28, no. 1 (1994): 129-64.

July at the Multiplex

DATE:June 12, 2012 TO:Mr. Plex, Owner, Royal 16 Theater FROM: Team 8 RE:Analysis of Liability for Fraud Based off of your request, we have completed an analysis concerning Royal 16 Theater’s liability for fraud assumed by the customer, Tommy. Please contact us if any additional information is needed. July at the Multiplex Executive Summary What are the standards of selling a service or product so the customer will not get furious? If we tried out best but they are still unsatisfied, what kind of response should we give? In this case â€Å"July at the Multiplex†, the plaintiff, Tommy, was not satisfied with the service that was provided with Royal 16 Theater. He demanded the money that he paid be returned. The theater owner, Mr. Plex refused to do so. Therefore, Tommy was outraged and filed a lawsuit against him. Mr. Plex has two choices to make. The first is to negotiate settlement money or defend the lawsuit. As a group, we will give our best knowledge of business law, statistics, and ethics to help Mr. Plex choose the ideal decision. First of all we will compare the fraud and misrepresentation of business law. Furthermore, we conducted tests on Hypothetical test and a Confidence Interval calculation. Lastly, under the ethics theory of cost-benefit analysis, justice vs. fairness and rights, we decided on the best action that Mr. Plex is supposed to take. July at the Multiplex Purpose: This report is intended to analyze the liability for fraud, the results of the statistical conclusions conducted by the movie theater, and the ethical issues involved with screening commercials before the scheduled movie. I. Analysis for Liability of Fraud The analysis for liability of fraud will explain in detail the offer, acceptance, and possible misrepresentation involved in the contract between Tommy and the Royal 16 Theater. The analysis will also cover the  Cao and Cao v. Nguyen and Pham  case and draw conclusions based on the prima facie case. Assuming that a contract exists between Tommy and Royal 16 Theater this examination of the facts will help determine whether Royal 16 Theater is liable at all for fraud. The offer made to Tommy by the Royal 16 Theater complex was a unilateral contract. That means that only one of the parties involved made a promise and they made that promise for an action. When Tommy bought his ticket for â€Å"The Governator† movie, this solidified the unilateral contract between him and the Royal 16 Theater complex. Tommy took the action of buying the movie ticket at the front kiosk and in exchange for that action the Royal 16 Theater complex promised him the opportunity to go inside, find a seat in the theatre, and watch the movie he paid for. Since all of the requirements were met in the contract this made the contact between Tommy and Royal 16 Theater valid. Read also  Case 302 July in Multiplex Valid contracts are contracts in which all of the legal requirements are met making the contract binding to both parties. The contract between Tommy and Royal 16 Theater is a valid contract because it was legal and both parties met the requirements to make that contract binding. Tommy fulfilled his part of the contract buy purchasing a ticket for the movie â€Å"The Governator† and the movie theater performed their part of the contract by screening the movie. Tommy knowingly knew about the contract he was entering into when he gave the Royal 16 Theater his acceptance. The duty of acceptance falls upon both parties seeking to enter into the contract. In a unilateral contract the party seeking to perform an action for a promise must accept the offer made by the offeror by the terms and in the method requested by the offeror. In this case Tommy was the offeree and the Royal 16 Theater was the offeror. Tommy accepted the offer made by Royal 16 Theater and did so in the method requested; making both the offer and acceptance valid for all terms and purposes in this contract. There are certain limitations on the recovery of damages imposed upon the contract that both Royal 16 Theater and Tommy entered into. The duty to mitigate damages falls onto Tommy, the plaintiff, in this specific case. The duty to mitigate damages is the responsibility of the plaintiff because the plaintiff injured by the breach of the contract cannot recover for losses that could have been easily avoided. In this case Tommy fulfilled his duty to mitigate damages and was not trying to recover for any damages that he could have easily avoided. Instead Tommy wants to file a lawsuit based on misrepresentation. A misrepresentation is a statement made that is not unified with the truth. There are two categories that misrepresentation can fall under: either innocent or fraudulent. When a misrepresentation is innocent it was made not intentionally to deceive the other party. A fraudulent misrepresentation is made with the intent to deceive with knowledge that it is false. Tommy wants to pursue legal action against Royal 16 Theater on the basis that they conducted fraudulent misrepresentation. Prima Facie Case The prima facie case that relates to this case between Tommy and Royal 16 Theater is  Cao and Cao v. Nguyen and Pham. In  Cao and Cao v. Nguyen and Pham  the plaintiffs file a lawsuit against the defendant for fraudulent misrepresentation. They said that when they were attempting to buy a property the defendants claimed that the property was in fact a duplex and that multiple families could live there. The city building and safety department revealed that the property was not a duplex and could not become a duplex due to building and safety issues. The plaintiffs then filed a lawsuit against the defendants for fraudulent misrepresentation. The first trial court dismissed the charges and found that the buyers did not prove the elements of fraudulent misrepresentation. When the plaintiffs appealed the results the second court reversed the decision of the first court and decided that the plaintiffs did prove fraudulent misrepresentation. The property sold by the defendants caused reasonable reliance upon the plaintiffs and there were damages because of the reliance. The property was sold to them on the idea that the property was indeed a duplex when the defendants had prior knowledge that it in fact was not a duplex. The defendants knew that the plaintiff would rely on the representations and conducted business anyway. This case relates perfectly to the situation going on between Tommy and Royal 16 Theater because both cases involve the plaintiffs trying to recover for fraudulent misrepresentation. In our opinion, Royal 16 Theater does have some liability for fraudulent misrepresentation when they tell their customers the movie is supposed to start at 1:00 pm, but they play twenty minutes of previews before. A simple solution to this issue could be resolved by printing disclaimers on the tickets sold to a customer that warns them about the commercials before they enter into the theater. That way when customers come to accept the offer from the theater they are bound by the method of acceptance and they agree to the commercials playing before the movie starts. The simple disclaimer will go a long way and will ensure that there will be no more plaintiffs like Tommy pursuing legal action against the theater again (Mallor, 2009). II. Statistical Analysis According to the commission of Royal 16 Theater, they need to decide which courses of actions are more advisable, considering negotiating a settlement of any lawsuit or defending vigorously. The survey is the key to which course of action will be taken. If the result shows that the percentage of people resenting the ads is 10%, the consortium should consider negotiating the settlement. However, if the percentage is less than 10%, Royal 16 Theater should vigorously defend. We have performed a survey which asked 100 random patrons whether they resent the ads. The result came out to be 6 out of 100 resented the ads. This information itself is not enough. We have to conduct several more tests to have a more solid idea of whom and how many resented the ads. First of all, we have to begin with a Hypothesis test, which means that we conduct a test to understand whether 10% of moviegoers resent the ads or less than 10% of moviegoers resent the ads. Our Ho(null hypothesis) should be p = 10% and our Ha(alternative action/hypothesis) should be p < 10%. In this case, the sample proportion would be 6100 = . 06. The calculation is going to be done using a confidence level of 95%. The confidence interval formula for this analysis is p=p  ±z ? p(1-p)n where p is the sample proportion, z is the level confidence from the 95% confidence level and n would be the sample number. = . 06, z = 1. 96, n = 100. If we plug in the numbers into the formula then we will get p  ±E (E is Error = z ? p(1-p)n). E would be . 04655. Therefore, p= . 06 ± . 04655 = 0. 1066, . 01345. Thus, the confidence interval for this analysis would be . 01345 and 0. 1066 which are 1. 345% and 10. 66% if written in percentage form. This says that this result is not accurate and the actual result may vary between this interval. In this case, since our null hypothesis which is 10% lies between the confidence interval, then the null hypothesis is not to be rejected at the moment. We have to perform further research and calculation. By this result alone, we suggest that Mr. Plex should consider the settlement agreement. Type I and II error Before we start with the consortium, here are the definitions of each error according to the textbook â€Å"Statistic for Business and Economics†: * A type I error is an error if we reject the correct null hypothesis * A type II error is an error if we fail to reject the false null hypothesis. Therefore, the Type I and Type II errors are wrong judgments in the testing of null and alternative hypotheses. With the null hypothesis Ho and the alternative Hypothesis Ha, only one of them is true. The result of hypothesis testing must accept Ho when it is true and reject Ho when Ha is true. If the result of Ho is true, but we reject it then we will make a type I error. On the other hand if Ha is true, but we fail to reject it then we make a type II error. As stated before, the Ho(Null Hypothesis) is when p = 10% and the Ha(Alternative action/Hypothesis) is when p < 10%. To illustrate more, A type I error would happen if 10% of moviegoers resent the ads, and they reject it. It would be a careless decision if they decide not to consider the settlement money, even though they understand that their null hypothesis lies between the Confidence interval. Going deeper with error, a type II error would happen if less than 10% of moviegoers resent the ads, and they fail to reject it. It would be a waste of money if they agree with the settlement when in fact, they do not need to and should defend the lawsuit. Hypothetical Statistical Analysis This time, we have a survey of 300 patrons. The result states that 18 out of 300 resent the ads and this 6% is inadequate for finding the answer. Once again we have to conduct a hypothesis test and confident interval calculation. Just like before, the null hypothesis for this would still be p = 10% and the alternative action would still be p < 10%. If 300 patrons are to be randomly selected instead of 100 patrons, and in the end 18 out of 300 patrons agree with Tommy to resent the ads, then the sample proportion would be 18300 = . 06. The calculation is going to be similar as above. This time it is still going to be calculated using a confidence level of 95%. The confidence interval formula for this analysis is p=p  ±z ? p(1-p)n where p is the sample proportion, z is the level confidence from the 95% confidence level and n would be the sample number. p = . 06, z = 1. 96, n = 300. Then if we plug in the numbers into the formula we will get p  ±E (E is Error = z ? p(1-p)n). E would be . 02687. Therefore, p= . 06 ± . 02687 = 0. 08687, . 03313. Thus, the confidence interval for this analysis would be . 03313 and 0. 08687 which are 3. 3313% and 8. 87% if written in percentage form. This time, the null hypothesis does not lie between the confidence interval. Thus, the null hypothesis has to be rejected and the alternative action accepted. Therefore, we suggest that it would be better not to do the settlement and instead defend the lawsuit. Additional Information There are many other factors which we are not aware of that might affect the survey. The most common one is how the survey is taken. In statistics, there are a few types of conducting surveys and each would lead to different outcome. There are Simple Random Sample, Stratified Random Sample, Cluster Sample, Systematic Sample, etc. Beside these types, the time and place of the survey is also a huge factor. To illustrate, there are more teens in a certain area and more elders in a certain are. What teens think and what elders think are two different things. Thus, the place is also a factor. Furthermore, the time is also a significant factor. Surveys taken on weekdays night and weekend afternoon would result in a different outcome. To conclude, we believe that the survey might not be very accurate survey. III. Ethical Analysis The ethical issues that may be involved in showing twenty minutes of commercials before the screening of the movie can be described under three main categories: the cost-benefit analysis, fairness, and the theory under which we believe Royal 16 Theater should act under. Cost-Benefit Analysis Schmidt (2012) believes cost-benefit analysis is when â€Å"both positive and negative consequences of a proposed action are going to be summarized and then weighed against each other† (â€Å"Cost benefit†, para. 1). Using this analysis will help to understand which is the best route for the Royal 16 Theater to take between their costs and benefits. Costs The â€Å"negatives† or cost of Royal 16 Theater showing twenty minutes of commercials before the movie is customers can of course become upset such as Tommy had. If there are more moviegoers that hear of Tommy’s lawsuit, many could follow in his footsteps because they believe in his position on the matter. Another cost the Royal 16 Theater will have due to commercials is they will need to keep their advertisers and stakeholders pleased. According to investopia. om (2012) stakeholders are â€Å"investors, employees, customers, and supplier that have an interest in an enterprise or project† (â€Å"Definition†, para. 1). It will always cost the theater something to keep each stakeholder happy. By showing commercials, the investors will get their money’s worth for finding advertisers to invest their time with Roya l 16 Theater. Employees will not have any benefits from commercials. Tommy has already showed the discontent a moviegoer may have towards commercials. Finally, suppliers can be content with commercials because customers can see their product and need to buy it during or after the movie. However, all this shows a large cost of trying to keep all of these stakeholders pleased. Keeping one stakeholder happy can make another unhappy. Benefits One benefit of showing twenty minute commercials is gaining revenue from commercials. When a customer sees a commercial with yummy chocolate bars or dancing popcorn they are going to be more enticed to go run and get some snacks before the movie starts. The Royal 16 Theater gains much revenue from moviegoers who gain this feeling during commercials. Another benefit from showing commercials is actually towards Royal 16 Theater’s customers. By showing commercials, a moviegoer can show up late and not miss the movie. This is usually what customers will do if they do not care for the commercials or just decide on a last-minute movie trip. Now we can decide on the cost vs. benefit choice for the Royal 16 Theater. Cost-Benefit Analysis Conclusion After seeing both costs and benefits Royal 16 Theater should deal with the cost entailed with dealing with stakeholders and Tommy. We believe this due to the fact that the Royal 16 Theater has too much invested with their stakeholders to stop it all just for one lawsuit. By taking the cost choice Royal 16 Theater will keep its reputation with customers and keep a relationship with the stakeholders. Having the benefits of customer satisfaction would be great; however losing the stakeholders is too much of a risk for the theatre to take. We have discussed the cost-benefit analysis, now we can understand if moviegoers are being treated fairly. Customers Treated Fairly In this ethical issue it is pondered if the customers are truly being treated fairly. This is a yes or no issue. It can be argued that the customers are being treated unfairly because they are not seeing a true representation of an advertisement or time for a movie. However, it can be argued that moviegoers are being treated equally because the Royal 16 Theater does not have an actual contract stating that a movie will start at this time no matter what happens. Neither party has an agreement saying any compensation will be given if the contract does not follow through. Also, movies have always been similar to this routine of commercials and many customers understand that. However, based on ethics the moviegoers are not being treated fairly. It is mainly due to the fact that the Royal Theater states a time slot for a movie to start, not when commercials for the movie will start. It is just good business practice to keep moviegoers happy by not deceiving them. According to Michael Hackworth (1999), â€Å"ethical leadership actually saves money; consider it the role of quality in business† (â€Å"Only the Ehical†, para. 1). We have just discussed if the moviegoers are being treated fairly, now we will discuss the ethical theory which the Royal 16 Theater should act under. Ethical Theory The ethical theory Royal 16 Theater should act under is the stakeholder/utilitarian theory. We believe this theory is the best because it lends itself to the golden rule of â€Å"the greatest good to the greatest number†. We believe this is the best course of action for the Royal 16 Theater because the theater has to act out of its own interest to keep its stakeholders content with performance. Ethically, this decision makes the most sense because by going on with Tommy’s lawsuit it will make the problem go away quicker. By fixing this issue with Tommy, the Royal Theater will make their stakeholders pleased and keep pursing revenue with their other fellow loyal customers. Conclusion In conclusion, we believe Mr. Plex should fight the case against Tommy with the consortium. We consider our evidence of the analysis of liability for fraud, statistical analysis, and ethical analysis enough to show Mr. Plex he will be successful in the case. Reference List Anderson, Sweeney, and Williams T. â€Å"Chapter Nine- Hypothesis Tests†, Statistics for Business and Economics. 10th ed. Thomas South-Western, 2009. Cao and Cao v.Nguyen and Pham, 258 Nev. 1027; 607 N. W. 2d 528; 2000 Neb. LEXIS56 Hackworth, M. (1999). Only the Ethical Survive. 10. Retrieved Jun 8, 2012 from http://www. scu. edu/ethics/publications/iie/v10n2/ethical-surv. html Mallor. (2009). Business law: The ethical, global, and e-commerce environment. (14th ed. ). United States: McGraw-Hill/Irwin. Schmidt, M. (2012). Cost Benefit Analysis (CBA). Retrieved June 9, 2012 from http://www. solutionmatrix. com/cost-benefit-analysis. html Stakholder. (2012). Retrieved June 8, 2012 from http://www. investopedia. com/terms/s/stakeholder. asp#axzz1xLL3G6UG