I Dont Believe Money Can Buy Happiness

Happiness is very essential in each and everyone’s life as it makes life enjoyable and motivates someone to move on. There are many factors that contribute to an individual’s happiness, for instance, satisfaction in one’s family life, work, love relationships and even good academic performance.Advertising We will write a custom essay sample on I Don’t Believe Money Can Buy Happiness specifically for you for only $16.05 $11/page Learn More Money is also a contributing factor but only when combined with other aspects like mentioned above. This paper gives an insight on why I don’t believe that money can buy happiness. I don’t believe that money can buy happiness since some aspects that leads to happiness for example respect, power love and a feeling of appreciation and belonging cannot be bought but rather attained naturally. The more one earns, the more the needs that are to be satisfied and so money is essential to a certain level after which it becomes a problem and make people less approachable and more egocentric affecting their social life negatively hence hindering happiness in their lives. Money also impairs people ability to enjoy life and the many things they have acquired through their wealth despite being in a better position to purchase items of choice because life’s little pleasures are overlooked. Money helps us to have a comfortable life as we can be able to cater for our needs but it surely cannot buy us happiness. This is because happiness in our lives is brought about by the little pleasures that life holds for us for example the joy attained through socialization with others, satisfaction in work and family life among others and not in the big pleasures attached to wealth and money. Materialistic people are generally unhappy as they tend to ignore the little things that bring about happiness in life in search of bigger things with the hope of being happier which doe s not come to pass. According to Luscombe (2010), money contributes happiness when it is acquired to a certain amount ($ 75,000) in a year after which no greater happiness is attached to the money. He argues that the lower an individual’s income falls below $75,000 per year, the unhappier he or she may be but at the same time, earning more than this does not guarantee any much happiness. This shows that as much as money is essential in acquisition and satisfaction of our needs, it does not guarantee our happiness by its own and other aspects of life have to be incorporated to attain happiness.Advertising Looking for essay on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Happiness can be viewed as the way one feels at a particular moment for example either emotionally well or not. It can also be viewed as the inner satisfaction an individual feels about his or her life in general in regard to what is happening. Money seems to make life appear to be working out well but it actually does not contribute to a person’s emotional well being that leads to total happiness. Lower income does not in itself lead to sadness but make people stressed up by the problems that face them. For instance those with family problems like those who are sick, separated or divorced are not happy irrespective of the amount of income they earn hence money just help improve living conditions and brings a person to a life he or she thinks is better but do not necessarily lead to happiness. There is more to happiness than money and there are people who are without money but are happier than those with lots of money depending on the circumstances that face them and the conditions in which they live. People who delight in their work for example those who are involved in more social work and lot of human contact seem to achieve much higher levels of happiness as compared to those whose work involves dealing with machines and l ess human interaction since there is a good feeling that comes along with sharing of experiences, ideas and opinions with others. For example hairdressers, doctors, nurses, teachers and social workers tend to be happier due to the strong social relations they develop in their work between their colleagues and also with their clients. This shows that although income matters, our attitude towards life is essential plus the consideration of other factors that may lead to our happiness like love, respect and recognition. The key issue towards attainment of happiness is the ability to have just enough money to cater for the basic needs for instance food, clothing, shelter and health and some little more for emergency and concentrating on how you spend your time and not what you can acquire. One should work on his or her strengths, purpose, the people and things that make life worth living and not on the items perceived to bring happiness but in reality do not. This is because happiness i s an attitude and making enough to facilitate basic needs and a little surplus creates some peace of mind hence happiness and lack of it causes pain and stress as one tries to make ends meet.Advertising We will write a custom essay sample on I Don’t Believe Money Can Buy Happiness specifically for you for only $16.05 $11/page Learn More Reference Luscombe, B. (2010). Do We Need $75,000 a Year to Be Happy? Retrieved from http://content.time.com/time/magazine/article/0,9171,2019628,00.html This essay on I Don’t Believe Money Can Buy Happiness was written and submitted by user Elle Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

7 Content Calendar Examples From Awesome Brands to Inspire Yours

7 Content Calendar Examples From Awesome Brands to Inspire Yours Content calendars can make or break the successful implementation of your content strategy. Why? Because they help keep your team on track, let them see what’s coming next, and help them avoid the panic of having to write something at the last minute. In this post, we took seven companies across a variety of industries and reconstructed their blog and social media posting schedules  (based on manual research) to create example content calendars. Then, after you’ve seen each example, we’ll show you how to establish your own publishing frequency, and build a content calendar to keep it organized. But First, Who Are We, Anyway?: is an industry-leading marketing calendar software platform. Curious to learn how you can manage your content + social media (and all your other marketing projects), all in one place? Start here. Download Your Content Calendar Template Kit Before you continue reading, download your content calendar template kit. It contains: A social media scheduling calendar  to plan, write and organize all your social media messages. A content calendar template  to organize and plan your content in advance. A printable marketing calendar  for your desk so you can always keep an eye on what’s coming next. A best times to post on social media infographic  to take the guesswork out of when you need to be posting. A how often to post on social media infographic  to know the baseline amount that you should post on your social media pages. A best times to publish blog posts infographic that lets you see the best times to publish your blog posts to gain the most eyeballs.7 Content Calendar Examples From Awesome Brands to Inspire Your OwnWhat Is The Purpose of a Content Calendar? The purpose of having a content calendar is to make sure your content team stays organized and on top of your publishing schedule. Some specific benefits include: Keeping track of deadlines. Giving your whole team visibility on what you’re working on. Making it easier to plan ahead. Let's Look At 7 Content Calendar Examples From These Leading Brands We chose the following companies to reconstruct their publishing schedule. Each one of these organizations had an active blog and a regular social media presence. Red Bull: Red Bull is a publishing company that just happens to sell an energy drink. This makes them interesting because they publish a large amount of high quality content. Reverb.com: An e-commerce business that carries musical instruments and accessories. They create content that makes it easy to see and hear what you’re getting before you buy. Modcloth: An e-commerce vintage clothing brand. They publish a mix of promotional content that helps sell clothes and content that shows their audience how they might look when wearing their product. Disney Parks: An estimated 150 million people visit Disney parks every year. Their content helps those visitors have the best time. BMW: BMW is the most popular car brand  on Instagram. Their messages promote an aspirational lifestyle that people strive to achieve. Whole Foods: Whole Foods curates content that’s valuable to people who want to live a healthier lifestyle. They also share their own recipes. Concordia College:  The marketing department at Concordia uses the story of their current students to attract new prospective students. Each one of these organizations span a variety of industries and company sizes. No matter what your organization does you can see a variety of schedules to inspire your own. Red Bull Red Bull is a massive media powerhouse that just happens to sell an energy drink. As you can see from their content calendar, they publish a lot of stuff whether it’s blogs, social media messages, videos and more. What conclusions can we draw from Red Bull’s content calendar? Post your content where your audience is most active.  Red Bull’s audience of 20 to 30 year old males is most active on Facebook and Instagram. Therefore it makes sense that Red Bull would publish a larger amount of content on these channels. Reuse video content on social media.  Red Bull is known for their incredible video content. Much of that gets shared on Facebook and their other social platforms. You might not be able to shoot the same kind of video, but if you have video content at all, repackage it for social media for maximum mileage. Create content that looks and feel authentically like the non-branded content that your audience seeks out. Red Bull is so successful because it looks like content from a publishing house. They don’t feel like they are being sold too. Takeaway: Organic social media content doesn't always need to sell directly in order to be successful. Take a look at Red Bull's content and social media publishing schedule.Reverb.com Reverb.com is an e-commerce website that sells pretty much any music related instrument you could think of. They know their audience well and have a created a reliable and consistent publishing schedule that’s jam-packed full of content about musicians, new and old instruments and techniques their fans would find interesting. What conclusions can we draw from Reverb’s content calendar? If you’re going to publish a lot of content make sure you do it well.  One of the reasons that Reverb.com is so successful with their content is because of their ability to tailor it to their audience. They publish a lot of information, but all of it is executed well. Establish trust with your audience. By talking to industry experts, popular musicians and more they are able to establish a sense of trust with their audience. People can drop a lot of money on their sites because they can trust what they find. Create content that makes it easy to understand how to use complex products.  Reverb does a great job explaining what their product does and how to use it. Their product base can get overwhelming and stressful so Reverb makes it easy to understand and find the dream product their audience is in search of. Takeaway: Earn your audience’s trust through the content you create. Take a look at Reverb's content and social media publishing schedule.ModCloth ModCloth is another e-commerce website that sells women’s vintage style clothing. ModCloth caters to a very niche market place as the demand for vintage clothes falls to a unique group of buyers. What conclusions can we draw from ModCloth’s content calendar? Put your audience’s interests first.  Modcloth’s audience is interested in fashion. They aren’t satisfied with what they can find at the mall. By creating content that gives their audience fashion ideas by itself, it’s okay that the copy tells them where to find it. This is an exception where direct selling can work for a retail brand. Start small and grow.  You don’t need to publish 67 blog posts and 123 social media messages right off the bat. ModCloth’s publishing schedule is small but that’s what works for them. You have to walk before you can run and that includes your content creation. Your blog doesn’t have to be your main focus. Blogs are great, but they’re also time-consuming. If your team doesn’t have the resources or the time to publish a ton of blog content, that’s okay. Focus your efforts on creating great content on your social media pages,e-books or landing pages and slowly grow your blog. Takeaway: Organic social media content should not always look and feel like an ad. Take a look at Mod Cloth's content and social media publishing schedule.Disney Parks Disney is a behemoth in the hospitality and service world and needless to say they publish a lot of content. The Disney Parks blog is just one of several blogs, Facebook pages and more that Disney runs. What conclusions can we draw from Disney Park’s content calendar? Create content that creates FOMO. Disney has many massive theme parks that are packed full of attractions and fun family things to do. Their content creates a FOMO or feeling of missing out on all the fun. This move creates a sense of urgency and longing for your audience hopefully promoting them to take action. Show them what they will experience. Create content that shows your audience what they will get or experience when they purchase your products. Instead of letting them guess what will happen, show them instead. Help them have the best time when they do business with you. Disney’s content focuses a lot on the experiences that their customers have. You can do this as well by letting your content show them how working with you creates the best possible experience they’ll ever have. Takeaway: Show your audience how to create an experience when they visit you. Take a look at Disney Park's content and social media publishing schedule.Whole Foods Whole Foods is a natural grocery store that was recently acquired by Amazon. They’re blog integrates the products their selling with fun easy to read content. What conclusions can we draw from Whole Foods content calendar? If you don’t have enough blog content to supplement your social media messages, curate it from other sources.  Whole Foods doesn’t publish a ton of blog content throughout the month so to supplement some of its social media posts it will scrape content from other related blogs, news sources and even their own customers. Try publishing themed content. One thing that Whole Foods does well is post themed content. Whether that be new Halloween recipes or ways to used seasoned fruits and vegetables Whole Foods finds a way to make their content timely and themed. Don’t publish blog content just to fill your content calendar. If you’re experiencing gaps in your content calendar don’t randomly publish blog content trying to fill it in. Your blog content should always be strategically written. Takeaway: Everything that Whole Foods publishes is high-quality content that their audience cares about. They might do well to publish a little more but you don’t have to have a publishing schedule like Red Bull to be successful. BMW BMW is a world-renowned luxury vehicle maker. Their designs are timeless, classic, and out of reach for many pocket books. Their content marketing strategy however, is not. What conclusions can we draw from BMW content calendar? Use your blog to show behind the scenes stuff about your product.  People love seeing what makes a product tick. Use your blog to show them information that they may not get by seeing advertisements or use cases of your product. If you sell an expensive product, use social media to reinforce your brand not make a direct sale. People know who BMW is and how it makes them feel. Their product is out of reach for many of their audience members meaning that a link to a dealership in a post probably isn’t going to result in a sale. If your product has a pretty hefty price tag use your social media to reinforce the luxury idea of your brand. Make people feel like they’re part of the community.  BMW is great at making their audience feel included when they buy their product. They’re not just purchasing a car, they’re also becoming part of a community. Takeaway: If your product is a hard direct sell, create content that caters to your audience’s aspirations. Take a look at BMW's content and social media publishing schedule.Concordia College Concordia College is a small liberal arts college in Moorhead, Minnesota. Like many colleges Concordia keeps and active blog and social media presence to attract prospective students. What conclusions can we draw from Concordia’s content calendar? Reshare your blog content.  Concordia shares one blog post  multiple times on one social media channel. This can help ensure that as many people see your content as possible. Let current customers tell your story. Concordia uses their content to show potential student see what it would look like if they were to attend the college. Word of mouth is more powerful than what you could say about yourself as a brand. Once you’ve publish your content respond to what people have to say. Your content publishing schedule is not complete once it’s live. You need to be able to continue that conversation about your content with your audience. Find out what they think and take the time to show them that you care about what they have to say. Takeaway: Reinforce the idea that your organization creates a community. Take a look at Concordia College's content and social media publishing schedule.How Can You Build Your Own Calendar Like a Leading Brand? You’ve seen seven  different examples. The next step in your process is to create a content publishing schedule and a social media promotion schedule. So how do you do that? Step One: Figure Out Content Types and Publishing Schedule The very first step in developing your content calendar is deciding what types content you’re going to be publishing. Some common options are: Blog Posts E-Books Landing pages Podcasts Videos Social media posts Email newsletters There’s no limit to the types of content that your team can publish but remember to start small and grow into more types later down the road. Once you’ve decided what types of content you’re going to publish, you need to decide how often you’re going publish each type of content. For example it could look something like: Publish two blog posts a week. Publish one podcast a week. Publish one e-book each quarter. The publishing schedule that your company decides on can grow or shrink depending on For every content piece you publish you should include the following information in your content calendar: The date it publishes. The topic it covers. The content format you’ll create. In your content calendar template it would look something like this:

Ways of Preventing Juvenile Crimes Essay Example | Topics and Well Written Essays - 1000 words

Ways of Preventing Juvenile Crimes - Essay Example Some of these programs have led to considerable decrease in crime rates while others have had no effect. This paper will deal with two juvenile crime prevention programs. Juvenile crimes Programs The Gang Reduction Program One of the programs that the Office of Juvenile Justice and Delinquency Prevention (OJJDP) enacted to aid in the prevention of juvenile crime is the Gang Reduction Program (Benekos & Merlo, 2006). The aim of this program is to deal with the gang activities that take place in a given region. This program entails different interventions on addressing individual, family, and society issues that lead to crime and gang activities. The program involves centralized, national, and local resources to aid in the deterrence, intervention, and containment of juvenile crimes (Greenwood, 2006). The objective of the Gang Reduction Program is to address the issues of juvenile criminals, the family, school, peers and the community. The reason for this is because these are the avenu es that either offer support to the occurrence or prevention of criminal activities (Greenwood, 2006). For instance peer groups have a very high influence on the character of an individual. In terms of family, one might come from a family where all the family members are criminals hence this makes it harder for him or her to quit the vice. The social status of the family might also be a contributing factor. As a result of poverty, the juveniles may opt to involve themselves in criminal activities in order to meet their daily needs (Siegel & Welsh, 2011). The role of the community in promotion of juvenile crimes is in the cases in which there is poor organization to an extent that the youths can easily access the drugs and firearms. In order to deal with the juvenile criminal issues, the Gang Reduction Program has set up prevention, intervention and control activities. Prevention actions mainly deal with the families, and the juveniles who are at risk of getting involved (Greenwood, 2006). For instance, in case of the youth who are ideal, the preventive measure is to ensure that they are involved in activities that will keep them busy, like attending school. Intervention activities entail management actions like outreach to sustain the youths who are involved in criminal activities with an aim of offering a better option to gang connections (Siegel & Welsh, 2011). The aim of these activities is to enable the youth change their conduct. Control activities entail police patrols, informing the society, offering support to the law execution intelligence distribution, setting up multi- organizational law enforcement and trying gang influencers, employing more instructors in affected schools to ensure all the youths are monitored while at school, and increasing regional watch teams that are associated with the Program. Thus by doing so, there will be prevention in juvenile crimes (Benekos & Merlo, 2006). The Juvenile Accountability Block Grant Program (JABGP) Another program which the OJJDP set up is the Juvenile Accountability Block Grant Program (JABGP). This Program provides financial support to the state administration for programs supporting the accountability of youth offenders in juvenile justice systems (Benekos & Merlo, 2006). The funds are mainly allocated in supporting the rationale of the Juvenile Accountability Block Grant Program. The areas that receive support from the JABGP are; juvenile drug and gun track; facilitating school protection, provision of education on regulated approval for criminals; education curriculum for prevention and control of offenses; execution of early recognition, management, and establishment and maintenance of

Administering the Death Penalty to Child Molestors Term Paper

Administering the Death Penalty to Child Molestors - Term Paper Example In a vast majority of cases, child molesters execute these behaviors knowing that they are unlawful but they cannot resist their intrinsic desire to indulge in such acts. There is also a category of offenders who do not consider such acts unlawful particularly when the child enjoys this kind of behavior. Summing up, child molestation is the execution of sexual offence against any child that is below the age of consent for sex. Child molestation is a crime that does not happen quite infrequently. â€Å"According to the U. S. Department of Justice Bureau of Justice Statistics, on any given day there are approximately 234,000 sex offenders who were convicted of rape or sexual assault and are in the custody or control of correction agencies† (â€Å"Sex Offender Statistics†). The U. S. Department of Justice Bureau of Justice Statistics records that as many as 4300 child molesters have been released from imprisonment in 15 states across the US in just one year, and out of these who have been released, about 3.3 per cent have been rearrested within just three years after the release for having caused another sex offense to a new child (â€Å"Sex Offender Statistics†). This percentage excludes the freed child molesters who did commit the crime after getting released once and did not get caught or imprisoned for the second offence. From these statistics, the ineffectiveness of the current state of punishment for the offence of child molestation is quite evident. This imparts the need for a radical change in the policy of punishment for the child molesters. The current policy that provides the child molesters with an opportunity to be released from punishment after some time is totally unacceptable because harming a child is a heinous crime for which t he offender must not be provided with any opportunity of rehabilitation. A vast majority of the child offenders are habitual criminals and there is little surety, if any, that they would not

Prison recidivism Research Paper Example | Topics and Well Written Essays - 1250 words

Prison recidivism - Research Paper Example or excitement, wanting to get more than what one presently possess (greed), desire to impose oneself on others (lust) and to apply violent behavior due to anger, disgust, and other strong emotions (rage). The problem arises when people entertain the proliferation of these human urges beyond the laws and rules set by society. In study conducted by Burton and Marshall significantly explained pathways to criminal behavior by citing the research of Moffitt who distinguished and categorized two types of antisocial people: the life-course-persistent individuals who have been identified to be susceptible to persistently manifest in continuous engagement of deviant behavior; and the adolescence-limited, as the term implies, are only involved in criminal behavior in a temporal state, usually during the development stage of adolescence when other skills and behavioral facets are still an ongoing process of growth (Moffitt 674; cited in Burton and Marshall 47). Citing additional researches, Bur ton and Marshall stated that â€Å"entering the criminal justice at an early age generally leads to an increase in future offending† (Burton and Marshall 47). At this point, the research would determine factors that increase the chance of individuals to engage in criminal activities. Factors for Prison Recidivism The results of diverse studies on crime have paved to way for researches to indicate that there are common factors that have been found to increase the tendencies for individuals to engage in antisocial and deviant behavior. Burton and Marshall have enumerated the risk factors, defined as â€Å"factors that increase the risk occurrence of events, such as the onset, frequency, persistence, or duration of offending† (Farrington, Industrial, family and peer factors in the development of... It has been explicitly stated that people who have previously exhibited and manifested criminal behavior have greater tendencies and susceptibilities for relapse, especially for those who fall under the identified profile: those who have committed or have potentials to commit theft and drug offenses;younger individuals; male; and foreigners trying to support and sustain their living in another country. From the given prisoner profile, the identification of factors that increase the propensities for ex-convicts to relapse and engage in future criminal activities require closer evaluation of these resource difficulties and address them to prevent recidivism. By identifying the root causes for criminal behavior, at the onset, community organizations tasked with providing social welfare programs should focus on enhancing support from the family and strengthening family relationships. The identified familial problems should be detected and social workers for spouses and children of prison ers must be oriented to strengthen their bonds through counseling, offering interventions and holistic support; as well as determining ways and means to provide educational and employment support, as required. The research studies cited by Burton and Marshall validated the argument that criminal offenders who entered the criminal justice system at an early age have greater tendencies to relapse (Farrington; Moffitt; McGuire as cited in Burton and Marshall 47).

Problems With Profit Maximization Strategy Finance Essay

Problems With Profit Maximization Strategy Finance Essay Shareholder Value is a financial term which is the final measure to see whether the company is successful in enriching its shareholders or not. We have tried to find the difference between shareholder and the owner wealth and have concluded that shareholder wealth is the supreme point of contention for any organization as in the long term it will benefit both owner and shareholder. Hence, both of them will be content. We first look at why shareholder value maximization should be the primary goal of any organization. Then, we look why there is divergence of the organization with the objective of shareholder wealth maximization. Then, we looked at various agency problems that come due to this divergence. Then, we gave strategies on how managers can increase shareholder wealth. At the end, we concluded with the new concept of stakeholder wealth maximization and explained its utility. Who owns any organization which is listed in share market, obviously, the Shareholders. These are those individuals who have bought stocks of the company which shows their ownership of the company. Even if business is a person firm, he is the shareholder. If the Business is big, the board of directors are made up of people who own the right by owning the majority of shares. Since, the shareholder own the company, they are entitled to maximum value generation from the money they have invested (Ahlstrom 2010, pp 11-24). In old times, the traditional approach of companies was to maximize the owners profit, but there were multiple limitations like:- Any firm has multiple targets other than maximizing shareholder wealth. These can be like achieving higher market share, huge sales growth, more stable market position. The traditional approach didnt consider all of these issues. Shareholder Wealth Maximization has multiple things to be looked into like Short term, Medium term and Long term Shareholder Wealth Maximization Shareholder Wealth Maximization over a period of time. The traditional approach lost out to these points. Social Responsibility needs to become the most important aim of any organization. Big Organizations need to give back society in lieu of the resources that they take from them. These big organizations need to devote something out of the profits that they earn. The traditional approach didnt take in account this (Smith 2003, pp 52-76). Modern approach puts more emphasis on Shareholder Wealth Maximization rather than owner profit maximization. This includes increasing the Earnings per share of every shareholder so that their net worth is maximized. Wealth increase is equal to what gross present worth in needed for raising profits in the future. This value needs to be discounted as per the time frame to found out the annualized rate of return for the shareholder. In Shareholder Wealth Maximization, it places priority before any other objective for the organization. Any action which has positive effective on Shareholder Wealth Maximization needs to be given priority. In any capitalistic society, the goal of business should be Shareholder Wealth Maximization as mostly the ownership of goods and services is by individuals, since, they own all the means so that they can make money. Shareholder Wealth Maximization at the end leads to rise in value of the shares which at end maximizes wealth of the shareholder (Ahlstrom 2010, pp 11-24). . Maximizing Shareholder Wealth as the Primary Goal Any financial decision to become effective needs better understanding of organizational goals. Shareholder Wealth Maximization should guide the decision making of the firm which needs to be represented in the common stock price. Profit maximization shouldnt overshadow Shareholder Wealth Maximization as many a times decisions taken to maximize profits of the owner has a short term view and in the long term erodes the value of shareholder wealth. Warren Buffet, who has been the advocate of Shareholder wealth, says that long term economic goal of any organization should be increasing the average annual gain of the intrinsic business value in their firm for their shareholders. Economic progress isnt shown by size of firm but by per share progress (Smith 2003, pp 52-76). Shareholder Wealth Maximization goal should be about management of firm seeking to increase the present value of their future of their shareholder but not increasing the profits of promoters. This return to shareholder needs to be given in the form of periodic dividends as well as if any shareholder decided to sell of the stock. As long as the dividend stream or the value stream is flowing, it increases the value of shareholder. Also, the higher the risk for future wealth growth, it reduce the faith of shareholders on the company. Stock prices always show what is the timing and risk associated with the future benefits which can be reaped by the shareholders. Shareholder wealth is defined as per the total number of shares times the value of per share at which it trades in the stock exchange the company is listed (Van Beurden Gossling 2008, pp 407-424). The advantages of using Shareholder Wealth Maximization as an objective are:- This considers the time period as well as the risk in investing in the firm. Managers must take in account this while making decisions like expenditure so that in contributed to increase shareholder wealth. Shareholder Wealth Maximization can be tested with every decision which is made by organization so that consistency in decisions can be maintained. If the decision increase shareholder wealth it is a good decision, otherwise it isnt, hence it shouldnt be taken. Shareholder Wealth Maximization is impersonal by nature. Shareholder is free to take their funds out and sell the shares and invest anywhere. If the shareholders risk preference isnt according to the decisions made by the firm, the shareholder will sell the sticks owned by him and invest in the organization which has best profile as per his investment needs (Bejou 2011, pp 1-6). For all of these reasons, Shareholder Wealth Maximization should be the primary goal to be achieved by any firm. But, the issues like social responsibilities managerial objectives, agency problems can create departure from pure Shareholder Wealth Maximization behavior shown by managers as well as promoters and more considerate in profit maximization. Nonetheless, Shareholder Wealth Maximization objective gives a standard on which every managerial decision can be judged and screened on (Ahlstrom 2010, pp 11-24). . Divergent Objectives The goal of shareholder wealth maximization is about how financial decisions should be made in an organization. But, not all management decisions need to be made by this. Using the index of managerial performance, we can measure the managerial success in achieving the shareholder wealth maximization objective. They should try and work to maximize Economic Value addition which is the difference between profit after tax and the cost of capital employed to generate that profit. Multiple corporations like Coca Cola, AT T, and General Electric use this concept of Economic Value added (Husted de Jesus Salazar 2006, pp 76-91). It has been seen that all those firms which dont give attention to stockholder interests and are more indulged in promoter profit maximization perform poorly in long term. There is always a divergence in shareholder wealth maximization goal and the other objectives which are undertaken by management. The main reason for this divergence is shareholders are real owner but control is with promoters in all corporations. This separation of ownership and control allows manager to pursue self-promoting goals which are not in line with shareholder wealth maximization. They are consistent to maintain the control of the company. Instead of pursuing the goal of shareholder wealth maximization, managers just work for satisfying or look for acceptable levels of shareholder wealth increase, while working for their interest improvement (Shaw 2009, pp 565-576). The maximization of personal welfare of managers can lead to long run job security of themselves. The focus on long term survival of managers limits the risk taken by firm as unfavorable outcomes can lead to disastrous outcomes for the firm. Similarly, the need for job security is one reason why management doesnt allow any merger offers given by other companies. The Golden Parachute approach is usually in the interests of managers more than the shareholders wealth. Now days, multiple companies give top management stock options which ensures their ownership in the company. Pan-American gives retirement option in common stocks which ensures that they think on the options to increase the share price. This helps in alignment of interests of managers with those of shareholders (Bejou 2011, pp 1-6). Agency Problems The presence of different objectives of owners and managers is one kind of agency relationship problem. Agency relationships happen when one individual hires other individual so that he can perform duties on behalf of his. They delegate the decision making to the agent. These kinds of agency relationships exist between stockholders and managers and those of stockholders and creditors. When we talk about agency relationship between stockholders and managers, the inefficiency rises as each party works in a way to maximize its interests and utility. The management thinking for looking for long term survival rather than thinking about shareholder wealth maximization. Other example is about using company airplanes, limousines and offices without having any ownership in the firm. This shirking by managers is an issue. Enron Corp lost $1 billion of investments in 2001. In 1991, Enron permitted their CFO to purchase assets and minimize the risk of Enron. The CFO made million personally. This conflict of interests made way for Enron filing for bankruptcy in Chapter 11 (Smith 2003, pp 52-76). In Enron Case, the agency issue was poorly handled which led to shareholders feel the brunt of this mismatch. Agency costs include 1) Expenditures made for minimizing the incentives for management which management took for removing decisions in contrast of shareholder interest, Such as giving management compensation in from of stock option of the firm. 2) Expenditure to oversee management action like audits both external and internal. 3) Protection of organization from managerial dishonesty. 4) Opportunity cost of lost chances due to complex structure of organization (Husted de Jesus Salazar 2006, pp 76-91). Managerial motivation act in the stockholder interest when they have stock in form of compensation, the threat of losing their job and threat of being taken over by any other organization. Agency problems and related costs can be decreases if financial markets are efficient enough. Also, it can be done with the use of complex contracts in financial terms. Agency problems lead to costs which reduce the value of firm on market place (Bejou 2011, pp 1-6). The Other agency conflict is between shareholder and creditors starts from the relation between owners and creditors. Creditors always stake a fixed claim on companys resources in lieu of long term debts, bank loans, commercial agreements and other instruments. The returns given to creditors are fixed while those to shareholders are variable due to stock price. Owners can try to make risky investment decisions, but creditors need to be paid back in full but investments need to be made as early as possible. Creditors to protect their money ask for other protective covers from company line bond indentures, limitation on dividend payments, types of Investments Company can make, poison pills and new debt application. This all can reduce the potential market value of the firm (Ahlstrom 2010, pp 11-24). Problems with Profit Maximization strategy If Managers of any firm want to work in the direction of shareholder wealth maximization, they should look beyond their conventional thinking of owner profit maximization. Profit maximization model isnt useful for decision making due to multiple reasons like 1) The standard macroeconomic model for any firm is static. Profit maximization cant compare short term and long term profits. Profit decisions should be reflected on time basis. And should have a long term impact on the firm 2) Profit is defined in accounting terms between costs and revenue, but it doesnt define any priority on multiple things like maximization of absolute profit, rate of profit as well as earnings per share. 3) The last problem is profit maximization of owners gives no way for managers to seek the risk assessment option. Tw projects giving same profits can have different risk profile (Cosans 2009, pp. 391-399) Conclusion The complete concentration on shareholder wealth maximization has been under criticism since the dot com burst. A shareholder value increase talks about benefit of the owners only but doesnt talk about the social issues like employment, environment and ethics. Any management decision can maximize shareholder value but can lower welfare of other stakeholders listed above. A Company while making decisions for maximizing shareholder value can also prove detrimental to interests of its customers as multiple decision regarding product lines can have effect. Also, shareholder wealth maximization strategy needs to have a long term view not a short term one. The intrinsic value of any business is brought up by the combination of financial might, societal contribution, employee satisfaction and shareholder interests maximization. This is said to be stakeholder value maximization. However, this concept is very hard to implement as every decision cant be useful to all stakeholder. They need to be prioritized and weighted upon before implementing nay managerial decision

Management Concepts Essay

Case for critical thinking: A flood of decisions 1. What information sources (or potential information sources) could have been used to assist with the decision-making process for Wivenhoe Dam in this case? Potential information sources that could have been used to assist with the decision-making process for Wivenhoe Dam -SEQWater -Sought advice from Water Grid Manager -Water Commission -DERM (Department of Environmental Resource Management) Managerial decision-making Problem avoiders Problem solvers Problem seekers Approaches to decision making Classical decision model Behavioral decision model Judgmental decision model 2. With references to decision-making theory covered in the chapter, describe the type of managerial decision-making evident in this case, and the conditions under which decisions were made. Managerial Decision Making *Problem avoidably *Problem solvers *Problem seekers Decision conditions: *Certain environment *Risk environment *Uncertain environment 3. Evaluate the decisions made in the case in relation to the classical, behavioural and judgmental heuristics approaches to decision-making that are outlined in the chapter. Which model do you believe best describes the situation and subsequent decision-making process in this case? Justify your answer? Approaches to decision making ^Classical decision model ^Behavioral decision model ^Judgmental decision model Case decision *Classical decision model Problem: it was the flood that damage Brisbane and Ipswich Possible alternative: Not releasing flood waters. Consequently threatened stability of dam Optimizing decision: Release of flood waters being aware of potential damage. SWOT Analysis: Strengths: *New technology *They set priorities *Manage time Weakness: Lack of communication Misunderstanding Misconduct Problem solving Crisis Opportunities: *Professional engineer *Employment Threats: Natural disaster (climate change) Damage roads and homes. Conclusion People should make wise decision to save the lifes of the others.