War in Deuteronomy

Deuteron chapter twenty should be read as a rhetorical or historical text. Though this topic has been widely discussed for many years, someone has yet to convince everyone that one way of viewing the text Is correct and the other Incorrect. Throughout this research paper we will discuss the text found In Deuteron chapter twenty along with surrounding text viewed through both the rhetorical lens as well as the historical lens. The surrounding text that we will analyze is chapters even and thirteen of Deuteron.Chapter seven discusses the Israelites expectations for separating from the idolatrous nations. Chapter thirteen informs the Israelites what they are supposed to do when enticed to follow false gods by three different accounts of influence. In Deuteron chapter seven, God commands the Israelites to practice complete separation from the Idolatrous nations of the Hitters, Geographies, Amorists, Canniest, Pretzels, Helves, and Jubilees-?all of which reside in the Promised Land they a re preparing to enter.Although these nations are stronger than Israel, God Insists that he will deliver these nations to the Israelites and they will destroy them completely, make no treaty with them, and destroy them. Following In verse four, God stresses that the Israelites are not to intermarry with any of these nations because doing so would allow them to turn the children of Israelite away from Him to serve other god. In result of such an occasion, God's anger would drive him to destroy the Israelites.The Israelites were told to basically attack the idolatry of these nations t the origin by destroying all of their altars and idols because they were the chosen ones to be God's special possession which they were to treasure. In verses nine and ten, it is stated that God is God and will continue being God for all eternity to those who love him. However, to those who do not love God he will destroy. The middle of Deuteron chapter seven, verses 11-15 talks about how God's people are to remember the covenant of love He has made with his people for He will keep the covenant If his people follow these laws.Up to verse sixteen, this scripture states that f His people follow the laws they will be blessed in numerous ways through crops, offspring, livestock, and disease such as what they experienced in Egypt. The closing of chapter seven of Deuteron is used to discuss that the Israelites are not to be intimidated by the strength of the other nations which they are to drive out, but to remember what God had done to Pharaoh in Egypt.God continues to overemphasized that He will deliver all of these nations along with their kings to the Israelites so that they may destroy them and the record of their existence. In the final two verses of his chapter, God instructs the Israelites they are not to covet anything the gods of these nations possess such as the gold and silver and not to bring any of their possessions Into their own household. In Deuteron chapter thirteen God addresses the destiny of those who practice Idolatry or entice others to practice Idolatry.The chapter begins with God stating that If anyone Is to experience an event that would cause them to feel the urge to worship other gods that the words of that sort to refrain from partaking in the suggestion of worshipping other gods because he very situation is a test from the Lord our God to find out if they love him with all their heart and soul-?the prophet who tried to turn them away from the Lord shall be put to death.Starting in chapter six and continuing through chapter eleven God tells his people that even if a family member was to entice them to follow other gods not only were they to be ignored, but they were also to be given no pity nor be spared, or pitied. This relative, or closest friend was to be immediately put to death by the hand of the family member who was being misled. By doing this, the killed enticer was to river as an example so that such an evil thing would not happ en again.Deuteron thirteen closes with a final situation of dealing with the people of a town who are misled into idolatry by wicked man. In this situation, the Israelites are to investigate the situation thoroughly, and if the situation is proven true, they are to kill everyone of that city. The city should become a ruin for the remainder of time and never rebuilt. The possessions of that city were also to be left as ruined and not be found in the hands of His people.This chapter is closed with the statement from God hat he will turn from his fierce anger and have compassion on his people if they do as they are told. Deuteron chapter twenty is a series of directions that concern war in general and the process of which the Israelites were to takeover and destroy particular cities. â€Å"The instructions in this chapter are peculiar to Deuteron. As the people of God, Israel was not a warlike nation; they were rather to abstain from warfare, and as a general rule to cultivate the art s of peace.But they had before them at this time the prospect of a serious and protracted conflict before they could occupy the land which God had assigned to them; and they might in future years have to go to war to maintain their independence and repel aggression. In view of this, instructions are here given regarding the conducting of military service† (Alexander, n. D. ). In verses one through four of this chapter, the Israelites are commanded to refrain from feeling afraid, panicked, or terrified of armies greater than theirs because the God who brought them from Egypt will be with them.Verse four states that the Lord their God will fight for them against their enemies to give them victory. Verses five through nine are accounts in which the officers of the army will ask for anyone who has built a new house and not yet lived in it, anyone who planted a new vineyard and not yet enjoyed it, anyone who pledged to a woman and not yet married her, or anyone who is afraid or fai nthearted to go home. Following this, verses ten through twenty are directions concerning the taking over of the false nations.When the Israelites march to attack a city that is far from them-?not of a nearby nation-?they are to first offer peace. If the city accepts this offer, the people of he town shall be made servants and work for the Israelites. However, if the town is not willing to surrender, the Israelites were to kill every man in the city, and take the women, children, livestock, and everything else in the city as plunder for themselves. On the other hand, when approaching a nation within the Promised Land, the Israelites are to immediately destroy anything that breathes without offering peace to them first.The Israelites are instructed to do so to avoid being taught to follow their detestable ways of worshipping other gods and sinning against the Lord their God. God then commands His people to refrain from destroying any fruit bearing trees in Historical Analysis There a re quite a few accounts in these chapters that lead to the idea that the text in Deuteron chapter twenty should be read historically. When the God of Love is commanding his people to annihilate and slaughter living people, there is obviously going to be controversy.The main controversy seems to lie between groups who cannot agree whether the text in Deuteron chapter twenty should be read historically or rhetorically. A sub category of controversy in chapter twenty, noted as Case 1 & Case 2 by biblical scholar Gordon J. Wham, is the discussion of why the nations within the Promised Land were not offered peace before being destroyed and the nations outside of the Promised Land were offered peace before being destroyed (Wham, n. D. ). In chapter twenty, why would our God tell his people to annihilate and destroy a nation not leaving anything alive that breathes?Aren't humans God's own creation? When these particular verses are read independently God does in fact come across as contradi cting Himself and failing to practice what He preaches. However, when read in context, we are able to see that God is by no means going against the sixth commandment, Mimi shall not murder,† but He is actually sticking to His word Just as He said He would. If we take a look into some of Deuteron chapter twenty's surrounding scripture we come across some eye opening information.For example, in Deuteron 7:9-10 scripture reads, â€Å"Know therefore that the Lord your God is God; he is the faithful God, keeping his covenant of love to a thousand generations of those who love him and keep his commandments. But those ho hate him will repay to their face by destruction; he will not be slow to repay to their face those who hate him. † This verse shows us God's reasoning behind why He wants the Israelites to destroy them. This reference takes away from the sting of the idea that God wants us to kill people, and therefore, allows us to interpret this text as historical.It is also suggested by Reverend C. Clearance, a biblical scholar, that the reasoning why the nations within the Promised Land were not offered peace before being destroyed is because they had already had their day of grace in Genesis 1 5:16 ND that they should be overcome by destruction lest they continue to pollute the land (Clearance, n. D. ). Another example is found in Deuteron 13. Biblical scholars Reverend J. Orr, Reverend D. Davies, and Reverend R. M. Edgar point out that in verse 14, which states, â€Å"then you must inquire, probe and investigate it thoroughly.

The Giver Totalitarian Society

Issues facing parties and the United States after World War II included the Cold War and the Civil Rights Movement. Republicans attracted conservatives and white Southerners from the Democratic coalition with their resistance to New Deal and Great Society liberalism and the Republicans' use of the Southern strategy. African Americans, who traditionally supported the Republican Party, began supporting Democrats following the ascent of the Franklin Roosevelt administration, the New Deal, and the Civil Rights movement.The Democratic Party's main base of support shifted to the Northeast, marking a dramatic reversal of history. Bill Clinton was elected to the presidency in 1992, governing as a New Democrat. The Democratic Party lost control of Congress in the election of 1994 to the Republican Party. Re-elected in 1996, Clinton was the first Democratic President since Franklin Roosevelt to be elected to two terms. Following twelve years of Republican rule, the Democratic Party regained ma jority control of both the House and the Senate in the 2006 elections.Some of the party's key issues in the early 21st century in their last national platform have included the methods of how to combat terrorism, homeland security, expanding access to health care, labor rights, environmentalism, and the preservation of liberal government programs. [10] In the 2010 elections, the Democratic Party lost control of the House, but kept a small majority in the Senate (reduced from the 111th Congress). It also lost its majority in state legislatures and state governorships.The Democratic Party traces its origins to the inspiration of Democratic-Republican Party, founded by Thomas Jefferson, James Madison, and other influential opponents of the Federalists in 1792. That party also inspired the Whigs and modern Republicans. Organizationally, the modern Democratic Party truly arose in the 1830s, with the election of Andrew Jackson. Since the division of the Republican Party in the election of 1912, it has gradually positioned itself to the left of the Republican Party on economic and social issues.Until the period following the passage of the Civil Rights Act of 1964—which was championed by a Democratic president but faced lower Democratic than Republican support in Congress—the Democratic Party was primarily a coalition of two parties divided by region. Southern Democrats were typically given high conservative ratings by the American Conservative Union while northern Democrats were typically given very liberal ratings. Southern Democrats were a core bloc of the bipartisan conservative coalition which lasted through the Reagan-era.The economically activist philosophy of Franklin D. Roosevelt, which has strongly influenced American liberalism, has shaped much of the party's economic agenda since 1932, and served to tie the two regional factions of the party together until the late 1960s. In fact, Roosevelt's New Deal coalition usually controlled the nationa l government until the 1970s. [11] Based on a series of polls conducted in 2010, Gallup found that 31% of Americans identified as Democrats, 29% as Republicans, and 38% as Independents. 12] A similar series of polls conducted in 2011 found the percentage of Democrats to be the same at 31%, while a two percentile-point rise in the number of Independents, to an all-time high of 40%, appeared to stem from an equal drop in the number of those Americans identifying themselves as Republicans from the previous poll, to 27%. [13] A Pew Research Center survey of registered voters released August 2010 stated that 47% identified as Democrats or leaned towards the party; the same poll found that 43% of registered voters identified as Republicans or leaned towards the Republican party. [14]

Alcoholsim

The effects of alcohol vary whether the drinker is male or female, adult or adolescent, and the length of time that the drinker has been drinking. The effects can be long-term or short-term. They can range from something as simple as slurred speech all the way to something as severe as death. Alcohol can be responsible for injuries not only to the drinker but also to the people around them. It can cause cardiovascular problems, eye problems, near. e system damage, and even birth defects.It can also affect your brain, liver, and gastrointestinal system. A persons life is significantly at risk when regularly intoxicated (Livingston). Some of the short-term effects of alcohol are slurred speech, drowsiness, vomiting, diarrhea, upset stomach, headaches, difficulty breathing, distorted vision and hearing, impaired judgment, decreased perception and coordination, unconsciousness, loss of red blood cells, and blackouts. With such severe short-term effects, one might wonder, why keep drinking?For those that do continue to drink, these are the long-term effects: increased on- the-job injuries, loss of productivity, increased family problems, alcohol poisoning, high blood pressure, stroke, heart related disease, liver disease, river damage, permanent brain damage, vitamin deficiency, unintentional injuries to ones self or others, and intentional injuries like firearm injuries, s exual assault, and domestic violence. All of which are things to consider before allowing ones drinking to get out of hand. The long-term effects of alcohol abuse and alcoholism can be very devastating and even life threatening, negativity affecting virtually every organ system (Medicine Net). Many adolescent drinkers have the it wont happen to me attitude. Teens drink and party and ignore the health risks. Many teens may know the health asks involved with becoming an alcoholic and what long-term drinking can do to a person. What they dont realize is that for those who are continuously drinking, even though they cant tell at the the moment but their drinking can cause major health problems for them as they enter adulthood.What many teens need to consider, but often ignore is that the most serious effects of teens drinking is that it all leads to adult dependence (Effects of Teenage Drinking). Not only does teen drinking lead to adult dependence but when an individual is a long-term drinker they kill many of their brain cells and the rain can be forever changed. Although alcoholism can cause many serious health issues, for women there area added health risks. It can cause premature menopause, it has been linked to an increase of breast cancer and increase calcium loss in menopausal women.As if those health risks arent scary enough, for women alcoholism can increase their chance of heart disease, memory loss, and reproductive issues. Women who drink while pregnant can also pass the alcohol to their fetus, causing Fetal Alcohol Syndrome. These children grow up with facial abnormalities, growth retardation and brain damage that inhibits their ability to live normal lives (Effects of Alcoholism on Families). However, men who abuse drinking can experience testicular atrophy, impotence, and reduced reproductive functions.Besides the effects that alcoholism is having on their health, most drinkers dont realize that their drinking problem is affecting those around them as well. Drinking affects relationships with spouses, children, and friends. Children that grow up with a parent who is an alcoholic experience low self-esteem, guilty feelings, despair, loneliness, fear of abandonment, depression, and Geiger than normal levels Of stress and anxiety. These children tend to have a harder time making relationship with friends or teachers and tend to be more withdrawn. They may believe that their parents drinking is their fault and frequently cry, have nightmares, and wet their beds. Once they get older, children may not easily make friends. They may hoard things, develop phobias, or exhibit perfectionist traits (Effects of Alcoholism on Families). It is also said that children of alcoholics are less likely to attend college. As children get older they continue to have low self-esteem and often make poor hoicks. Marriage is another common relationship that is affected by drinking.Divorce rates increase when one or both spouses drink. In relationships where only one spouse drinks, the non-drinking spouse will become the caregiver, which often leads to feelings of resentment of the drinking spouse. Many marriages that involve alcoholics suffer from poor or lack of communication, reduced intimacy, abuse, and lack of finances. Many alcoholics will hide money from their spouse and use it for their addiction. Alcohol abuse can be associated with negativity and hostility which usually dads to some sort of abuse in the relationship. The more frequently men are intoxicated, the more likely they are to be verbally and physically violent toward their spouses. 40 t 60% of battered women report that their husbands were heavy or problem drinkers (Alcoholism and Marriage). Alcohol abuse not only affects the drinkers relationships, but it also can have major effects on their way of life. Many times it is the way alcoholism effects relationships that most greatly causes an affect to their way Of life, but it also can affect the drinkers work fife.With increase in on-the-job injuries and loss in productivity, the drinkers work life tends to diminish. When work isnt getting done or getting done right most employers see it as time to find somebody better fitting for the job. When this happens it can cause financial stress on families, especially when the drinker starts using bill money to supply their addiction. The marital stress that is brought from lack of communication and unpaid bills usually leads to other marital problems. As these problems increase, marriages often end in divorce.Living with an alcoholic is never easy, coping with secrets and lies and being manipulated for that next drink. If the bottle turns out to be their one true love, often, the only option is to leave them and salvage your life. (Living with an Alcoholic). Divorce greatly affects the drinkers way of life; they no longer have their family to come home to. The following excerpt is a testimony from a man named Jeff Gauged and how alcoholism affected his life. He writes, l am an alcoholic. Have been clean and sober for several years now. My drinking was out of control for more than half my life.My wife took on the role of head of household and all the stress of that plus dealing with an alcoholic husband and father. I was in the military for several years but was asked to leave after being caught drunk on duty. Afterwards, I had several jobs that only lasted for a short period of time; usually would quit before they asked me to leave. Everyday my wife. Michele, would leave for work knowing would probably be drunk when she returned. On one occasion, the police were called because I had hit her and would not calm down. Am not proud of this, but it happened and it is a part f my life.I had gotten so bad that I would have seizures from alcohol withdrawal when I would have to stop drinking. When my family went to my brothers wedding in another state, I had to make sure would start the trip off in my own selfish way. When I started to come down off the booze I had guzzled before we left, I had a seizure and we had to stop so I could be admitted to the hospital (Alcoholic Husband). This man was lucky enough to have a spouse that stood by him and helped him find his way to recovery. Alcoholics are two times more likely to be divorced than those who dont rink.

Crude oil prices Research Paper Example | Topics and Well Written Essays - 750 words

Crude oil prices - Research Paper Example Crude futures declined in the recent past on concerns global oversupply is hurriedly  filling oil stocks. Total petroleum output in the year 2015 is expected to go up to 9.35 million barrels every day, slightly more than the 9.3 million barrels daily forecast in the previous period, the Energy Information Administration (EIA) said last week in its monthly short-term energy outlook. Independently, oil stocks went up more than anticipated marking the several consecutive week of a higher overall than at any other time for the last 80 years and more. The American commercial crude oil stocks rose by appoxialely4.5 million barrels from the previous week, the EIA said Wednesday. Another reason weighing on oil price is the OPEC. The U.S. oil output could be adversely affected in the years due to low oil prices offered by the OPEC countries. In addition, the lower global oil prices may have affected the marginal barrel output from other sources, such as shale, OPEC said.  The OPEC body controls a significant percentage of the world’s fuel production. As such, any decision they make directly affect the market prices of the commodity. In this case, the petroleum trading block may take actions targeting their competitors. Such actions may include flooding the market with the commodity leading to market forces coming into play and hence price decline. America has been in the frontline in the war against terrorism. As such, the country has formulated various policies aimed at reducing terrorism. Such policies have been affected towards Iran and Tehran for their alleged involvement in nuclear weapon manufacturing. In this case, the two countries are prohibited from placing their products in major global markets. However, USA and the two countries have signed several deals that have seen the reintroduction of petroleum product from two nations. In this case, the total global supplies increase prompting the market forces to push the prices

Summarize Taylor article Example | Topics and Well Written Essays - 250 words

Summarize Taylor - Article Example of preserving some form of status quo that management is comfortable that it divests an efficient worker of his potential to produce more than what is expected of him. These attitudes become a problem since it cultivates a culture where the labor force stagnate instead of grow. Scientific management is a solution offered by Taylor where it seeks to cultivate a new form of mentality where there is a new manner of setting an equilibrium that integrates the worth of the working man with the aid of efficiency that technology can provide. He offers four principles which starts with the assimilation of new set of ideals that have worked in the past to formulate a better set of understanding that will yield improved results. The next puts focus on establishing skilled managers who will guide in the new way of administrating the principle of scientific management. Perhaps the most important of these principles is the third which is the bringing together of science and man to a common goal. The final principle is what differentiates it from all other which is the division of work which gives direct correlation to the significance of technology in improving output while keeping the working man assured of his worth in the production process

Cybersecurity Best Practices Assignment Example | Topics and Well Written Essays - 2500 words

Cybersecurity Best Practices - Assignment Example The safety of one’s computer, network or personal information need to be protected by viruses, identity thieves, malware and any other form of threat. The steps to be taken to protect the above and safeguard personal systems shall be addressed in relation to two case studies analysed herein. Upon receiving a new computer for the home environment, it is necessary to ensure this system is as secure as possible. Both the computer and the home network need to be protected from viruses, hackers and malware. The home network should be guarded from external threats because it is used to perform sensitive transactions such as online banking services, online shopping among others that may require one to share private information. It is this information that hackers seek access to, in order to attempt to steal a person’s identity and use their credit card information or bank details, for example, to access the victim’s finances. In addition to numerous security tools and programs that one can install into their computer and use to keep the system secure, it is advisable to take an interest in hacking methods, so that one knows when their system is under threat. It is due to this type of negligence that many victims fail to prepare themselves properly in case of an attack. This lack of preparedness has also seen efforts to recover from cyber-attacks rendered ineffective. Such information can be found online in trusted websites, with training on the latest hacking methods and scams being identified and addressed. It is therefore important for individuals to take up some time and learn about hacking and methods of countering the same. In order to secure this type of network, the following steps should be undertaken. The setting up of a home network has the advantage that an individual can have access to the internet from any point within the premises either

Cjus 340 DB3 Essay Example | Topics and Well Written Essays - 250 words

Cjus 340 DB3 - Essay Example Contrary to that environmental criminologists concentrate on the place and the time of crime. They also use map as a tool to find out crime patterns in respective locations (Brantingham & Brantingham 49). Apart from the mentioned factors, the family environment plays pivotal role in upbringing of a child. If environmental problems exist in the family then the child is most likely to fall prey to the criminal activities. The root cause of a crime as per the researches conducted by the researchers is poverty, poor educational system and the family structure. Communication gap within the family and poor relationship amongst the family members inculcates bad behavior in children (Brantingham & Brantingham 53). It is observed that a family which is financially weak and has more children than required contributes towards criminal activities. Abusing and neglecting a child is another factor to promote antisocial activities. Physiological and Sociological surveys indicate that 50 percent children are at a risk of criminal activities for being neglected, abused and deprived from their due rights. Hence, juvenile delinquencies are on the rise in United States of America (Eysenck

A+ Assignment Example | Topics and Well Written Essays - 500 words - 1

A+ - Assignment Example Perceived obsolescence is a concept which means that something has seemingly gone out of style but it has not yet. In other words, basically recycling should be planned obsolescence, because as we become a garbageless society the recycling system will be perceived obsolescence and recognized as such within society, without a doubt. These are real concepts. Recycling only comparmentalizes garbage. We have increasing amounts of recyclable garbage to compartmentalize and reuse, threfore we must realize that when we â€Å"throw away,† there is no away, per se. The garbage is either being added to the amount of recyclable garbage in circulation or is added to the landfills. 4. Since we â€Å"cannot run a linear system on a finite planet indefinitely,† what is the solution if we are to become a sustainable society? Another way to say this is you can’t have unlimited economic growth with limited resources. If we become a sustainable society, we will be far less wasteful as a society. Once our resources become scarce, we are going to have difficulty finding new revenue sources. The problem is, we can no longer depend on foreign oil to help our livelihood. The economy will not recover if we consistently fail to use our resources wisely. So, in effect, we must galvanize as a nation in order to use them with caution and very sparingly. In order to accomplish this we must reign in our spending and not make waste and increase revenue. We need to ensure that the economic system is sustainable environmentally, if that makes sense. Our policies should reflect ecological realities. The biological systems on which we depend should be supported by policies. If they are not, we will have future problems for sure. The political action groups (PACs) that lobby Congress must â€Å"go green† and become environmentally conscious and savvy and â€Å"in the know† about what we are doing to our environment.

Control Mechanisms of Wal-Mart Case Study Example | Topics and Well Written Essays - 750 words

Control Mechanisms of Wal-Mart - Case Study Example This made the role of middle men in supply chain activities, as an employee in Wal-mart. After that Wal-mart brought a far larger group of potential consumers within reach of the small commercial centers. This resulted in the control mechanism of building the efficient warehouses necessary for discount operations as part of transactional strategic investments. This can be termed as the control mechanism of buying products from producers directly as the warehousing involves storing the goods economically. (Nelson Lichtenstein, 2005) The control mechanisms that implement the aspects mentioned in part A can be divided into price, integration, contract and trust developed with communication. These involve internal audit, external audit, market control and financial control. The internal audit of the Wal-mart involves asset protection. The auditors concentrate on making inventory process efficient in and over the USA. The loss due to shrink, theft and any types of losses or damages are calculated and communicated to the store management to minimize the problems. There are 11 locations of internal audit in USA. (http://walmart.feedroom.com/fr_story=FEEDROOM119269&rf=rss) The external audit of Wal-mart is responsible for consolidated annual financial statements and so the external auditor. This financial reporting will be according to legally accepted accounting standards. The observation process involves the closed door meetings of the management with external auditors. The external auditors have reasonable independence on preparing the financial statements to make company's transactions transparent. The financial statements prepared by external auditors will be presented to shareholders. (Hector M, 2002) The market control mechanisms of Wal-mart involve the cost cuts and global supply chain. It controls the market by opening large scale supermarkets that sell at low cost and by partnering with local retailers. It establishes its presence in the large retail markets by opening stores that sell the products less than the prevailing prices. It concentrates on increasing profit and sales by decreasing the purchasing costs and profit percentage. In every location the gigantic stores of Wal-mart are a success. (http://i.walmart.com/maint/) The financial control of Wal-mart involves reducing organizational debt and in course of time making the organization debt free. This is possible by maintaining enough cash flows for short term debts and partnering with local partners to establish new stores in new locations that minimize the credit taken from financial organizations. (http://i.walmart.com/maint/) Part C The above mentioned execution of control mechanisms shows effect on planning, organizing, controlling and leading of Wal-mart in its activities. These activities are concentrated in enhancing the exploration of supply chain management by using information systems. This resulted in application of information systems to support supply chain management in order to strengthen the control mechanisms. In the course of implementation only the information systems are being reengineered but not the business processes. This means the business processes dictate the information systems to be used. The business processes are planned keeping in view satisfaction of end user and the relationship of retailer with supplier. By focusing on developing adaptive networks the customer

Issue(s) with Obamacare Essay Example | Topics and Well Written Essays - 500 words

Issue(s) with Obamacare - Essay Example The purpose of the article is to analyse several sources in relation to the main topic and determine how reliable the Obama care is. Contrary to the Act’s main goal, sources indicate that Obama care is doing the opposite because there is an increase in emergency room visits by low-income individuals. The article is in fact stated in that it does not provide indirect information. For instance, the article maintains that since the signing of the Act into law there has been a shortage in physicians and an increase in crowding, which reflects a negative progress. The article tries to prove that Obama care is not meeting the objectives for which it was made. This is being done by indicating and analysing the problems that Obama care has brought in the country with regard to deteriorating health care. Additionally, since the article states, â€Å"Obama care has a new problem† it tries to prove that although the Act had encountered problems in the past, the condition is not im proving (Zadrozny). The overall American population is the audience. The audience might be influenced by the content in that it might refrain from using and trusting Obama care. The author has adequate expertise in both political and business field, as the arguments provided are reliable and does not confuse the reader on the main issue. The sponsoring website for the article is the Daily Beast Company. The company’s reputation is good. This is because the company’s website provides reliable information. Although the article does not have a bibliography list provided, it has incorporated in-text links that point to other reliable websites such as governmental websites that help in cementing the overall argument. To show that the information is trustworthy, the author has ensured that secondary links are provided for further reading and confirmation of the argument’s authenticity. With regard to grammar, the

Automobile Industry Essay Example for Free

Automobile Industry Essay †¢Key drivers of the automobile sector are economic conditions, governments and regulations, consumer demands and interests, globalization and technological innovations †¢Generally, if the economic conditions are constant and good, people will seems willing to buy vehicles more than ever in all around world. In contrast, if economic conditions are bad, sales graphs will reverse and companies start to lose money. Firms should decide right production numbers in every condition and this capacity exactly depends on economic circumstances. †¢People are more conscious about what they except from a car and firms must satisfy these needs to survive in this sector. Even luxury automotive brands start to produce low fuel consumptions engines, otherwise they will collapse rapidly. †¢As usual, globalization is one of the crucial key drivers of automobile industry like every sector. After the globalization, brands start to do partnerships with each other to enter the different markets and they develop new technological innovations more cheap and useful all around the world. †¢In addition to these factors, governments’ regulations are one of the major determinants of global auto industry. The country’s’ legislation about emissions, environment and recycling are the key factors of brands investments. In European Union, the mutual regulations order that emission rate is lower than other regions and as a result of that firms should produce accordingly to these legislations. The Automobile Market †¢The automobile industry has become important after the globalization because people want to travel with more comfortably, safely and rapidly with their cars. Concordantly, while automobile sector is developing in every part of it, the global transportation sector benefit from positively. For instance; Rolls-Royce is producing both plane and car motors and Volvo is producing car and sea boats engines too. So, firms help to enlarge and develop in every transportation tools, not only cars. †¢The automobile industry consists of fuel, tire, and insurance firms. Also, mostly the luxurious brands are working with ranking fashion companies such as; Gucci(Fiat) and Hermes(Bugatti) and sound system companies like as; Bang Olufsen (Audi, Mercedes, BMW, Aston Martin) and Naim (Bentley). †¢On the other hand, after the globalization, automobile brands start to work together in some regions all around the world. They invest more money on RD departments and sharing their knowledge to improve all transportation vehicles. †¢Germany, United States, Japan and Korean producers are the bestsellers all around the world. These countries mostly take control all over the world. Such as: Volkswagen is one of the biggest companies in automobile sector and it has got several brands such as; Audi, Lamborghini, Bentley, Bugatti and Seat. Company produces car for every segment. †¢In addition, especially for the last decade, market start to tend to produce more clean motors which do not harm to the environment. Also, they try to produce completely using electricity engines for all vehicles and using solar panels. As a result of that, the concept of climate change cause occurs a new market in automobile sector. Key Country Markets †¢In this chapter of report, I will mention about Japan, United States, Germany and Korean automotive producers because Toyota and Honda from Japan are the best and most well-known brands, Volkswagen from Germany is the head of locomotive in this industry for all parts of it, GM and Ford are the biggest companies from United states and Hyundai, which is becoming more powerful in everyday from Korea. †¢Volkswagen is the second best seller in 2012 after the GM and they are in front of Toyota. Generally, German cars are best vehicles that showed by automobile specialists from all over the word in every segment. Volkswagen, (if we look at the Exhibit 1) has got several different brands like; Lamborghini, Bentley, Audi, Bugatti, Skoda and Seat. They have product range from low-consumption cars to the luxury vehicles, as a result of that they are producing well- quality vehicles. †¢Toyota and Honda are the most favorable brands from Japan against to American and German manufacturers. Toyota Corolla is the world’s best seller mass production model and Toyota has got successful models as like Corolla too. In addition, Honda is one of the biggest and accomplished gasoline engine producers. Also, these two Japan brands are investing their money on hybrid and electric motor more than ever other brands. †¢GM is best seller brand in 2011, they sold approximately ten million cars and they have got various vehicle models. GM has got various brands such as; Chevrolet, Opel, Vauxhall, GMC, Buick and Cadillac. Also Ford is the one of the biggest key driver of the market. †¢Hyundai is one of the most developing auto brands for last decade. They start to produce well engines, comfortable and good looking cars. On the other hand, Hyundai is one of the biggest partnerships of Kia (%49. 2) which is the second biggest brand from Korea. †¢As we can see clearly, these 6 brands from 4 country of the world are the leaders of this sector. Also, they own various brands in their group and they are using this superiority against to the other brands. Sector Trends †¢Brands should produce low-consumption engines and obey emission and governments’ regulations to survive. †¢Nearly all automotive producers are using same technology on their vehicles; they need to work on these researches together to be more beneficial for humanity. For instance; Mercedes-Benz and BMW are sharing RD departments studies with each other and both of them working together to develop new technologies. †¢People are expecting more useful cars from producers like, they want both athletic and reliable vehicles, as a result of that firms has got new opportunities to create new model segments based on these requirements. †¢Transportation vehicles are developing in every day and automobiles is one of the crucial parts of this situation. Firms are increasing their sales number in every year and they need to satisfy their customers’ requirements in a perfect way. †¢Climate change is one of the determinants of this sector, so firms should pay attention to this issue seriously, they need to obey governments’ regulations and produce new technologies which will be not harmful for nature. †¢Hybrid and electric engines will be the most popular trends in this sector next decades; people would prefer clean engines and low-priced energy, so sector must be improved itself rapidly. Key Success Factor. †¢In this sector there are several success factor which is decided by people and worlds’ requirements; †¢Firms must produce more secure cars because, if we compare transportation systems, motorway is the most dangerous one and, the number of accidents’ proofs it. Brands should work together on security services. For instance; Volvo which is one of the securest brand on the world, claims that after 2020, any people will die in a traffic accident that drive a Volvo. †¢Engines success based on the fuel-efficiency, not harmful for the environment and being long-life. These conditions should be priority for brands RD departments. †¢Practicality needs to be developing parallel with previous items. People do not want to send various tools in the future; they will only buy contently vehicles. The Future Outlook and Expectations of Automobile Sector †¢People will need cars in the future more than now, producers’ need to satisfy this demand with new technology engines, they should create alternative energy resources which will be not harmful for the environment and firms need to develop safety features to prevent traffic accidents. †¢In the future people need transportation systems because of the longer distances, in every transportation way need to develop it. †¢Brands need to improve driverless vehicles because market will tend in that way. INTRODUCTION AND OVERVIEW The Automotive Industry Overview The automotive industry is one of the crucial sectors for humanity and it has been developing from industrial revolution to now. After the first engine was discovered in 1885 by Karl Benz, engineers found various inventions to make easier of people life. Industry had developed too much nowadays, engineers work on different technological tools and they need to show pay attention many different regulations in today’s world. At the beginning, the most important part was the engine but now automotive industry involves a wide range of business lines such as; manufacture, design, development, marketing and selling motor vehicles, motorcycles. Last year, there were approximately one billion cars which are registered on the world and this number is increasing sharply year by year. Parallel with that, consumes gasoline and diesel fuel multiply with every new car addict to the traffic. On the other hand, this sector employees thousands of people and creates new opportunities to undeveloped countries. In addition to these information’s about automobile sector, we should absolutely mention about the economy of which it creates and process. Currently, mostly the all automotive brands are owned by developed countries and they made their substructure investments all around the world, especially undeveloped countries. After the globalization, firms decide to set-up their factories at low skilled labor force countries. However, this decision affects both sides positively, producer’s limits cost and undeveloped countries’ economies start to develop. According to the OICA (The International Organization of Motor Vehicle Manufacturers that, â€Å"If vehicle manufacturing was a country it would be sixth largest economy in the world. † in 2007. This shows that the contribution of automobile industry to the undeveloped countries’ economies. Also, the industries turnover 2 trillion dollars and if we comparing of this turnover of GDP with other economies in the world, proof that it can compete economic power of Italy, France or the UK. India is one of the greatest examples of the success at their economic improvement. Tata Motors, which Indian automobile brand owned Jaguar and Land Rover last year and they developed it perfectly in 2 years. After these 2 years, Jaguar and Land Rover increased their profitability nearly in half and when we think about these two brands are luxury brands, these numbers are spectacular. On the other hand, firms expanding nearly 85 billion dollars on Research Development departments. These budgets shaped by customer’s demand, so this sector is one of the innovative ones and it still produce new technologies. However, automobile sector has got unfavorable situations like; economic crises. If we make a research about when firms sales numbers decreased or companies made loss we will realize that on that era, world or the some regions is in economic crises. For instance; last biggest economic crises in 2008, when we look at the production number, it will decrease nearly %12. 7 compare to the previous year. These numbers are same with the other economic crises and automobile sector affect from them firstly. Key Country Markets United States. Todays’ world America is the one of the world’s biggest automotive producer with two brand; GM and Ford. GM has got various sub-brands in itself from different segments. These two brands sell their cars all over the world and both of them are most knowable automobile producers. However, in 2008, worlds’ biggest economic crises occurred GM was nearly bankrupt in an unbelievable way. This means, world would lost one of the old and essential brands, thousands of people would lost their job and American economy got hurt again after the Lehman Brothers. Hopefully; government decided to help GM and they saved the firm quickly. Japan Toyota is the most valuable automobile producer in the world; its net value is 131 billion dollars. Also one of the models, Corolla is the best seller model one the world and it has been sold nearly forty million from 1966 to 2012. In addition to the Toyota, Honda is another successful Japan auto brand too. They have got accomplished sales numbers and firm is producing one of the best gasoline engines. According to the consumers, Toyota could be the best competitor against to the German auto makers. Firm is producing in same quality with Germans but they are selling them cheaper than German brands. This is Toyotas’ major successful strategy also, company uses Japans’ engineering and technology which is the worlds’ best ones. They produced worlds’ first hybrid car and investing a huge part of their money on electric, clean and cheap motors. Germany The locomotive of the industry is Volkswagen right now and it will not change for two or three decades. Only the Volkswagens’ value is 76. 3 billion dollars and company has got several brands like; Audi (28. 5 billion$), Porsche (15.3billion$), Lamborghini, Bentley, Bugatti, Seat and Skoda. This German brand is producing most usable models with low-consumption engines, low prices and the safety of German engineering. Volkswagen is shaping the trends of the industry and other brands are following it right now. Firm has got different models from every consumer group and they make it an opportunity to be successful in the future. Korean Asia’s’ economy is the world’s fastest growing economy in nowadays. They are growing better than Europe and United States, as a result of those brands of this region are developing too. Hyundai is only the one of them; they are creating new models, developing current models and enter new markets. The firm move considerably forward when we compare a decade ago, their substructure and technological systems improver very well, also; they are producing more reliable and comfortable vehicles. This Korean brand will be one of the serious auto brands in the future if they are going in that way. Economic Impact of Automobile Sector The automotive industry has a big impact on every economy, it consist nearly every economy in the world. Every country in the world has got a part from this sector and thousands of people work in this industry. It is really crucial for transportation sector because, firms are using or developing same motors on different transportation vehicles. On the other hand, auto sector has got great impact on countries economy. If a country has got a factory or some service area about this sector, it will include a huge part of country’s’ economy. For instance; America worked really hard to save GM from the 2008 economic crises, they spend too much money because, if GM bankrupted, America’s economy will affect in deeply (if we look at Exhibit 3). Also, Ford decide to sale Aston Martin and Volvo at this era, these two brand had not good sales number and they will be harmful for the company if they do not sale them. Automobile brands have a great impact on country’s economy just like banks, executives should be careful about this issue seriously because it can be affect from economic crises easily so, they need to take a decision in long-term. Market Segmentation The automobile industry has a got long operation process; it has various segments in it. Firstly, R D department research what people need or what they want from a vehicle. After that, this part start to make prototypes or create stereotypes which engineers and designers can build on these examples. Designers work on cars aerodynamic, shape and how it looks. In addition, engineers work on substructure parts of the car such as; lights, engine, transmission and safety systems. While they are producing this prototype, they do various tests on car and finally they can send it to the dealers. Dealers, order number of cars and they prepare launches to introduce cars to the customers. After the sale of car, the service department starts to interest with car. They call them to the services periodically and customers can visit them anytime they have a problem with their car. Consequently, this industry has got major segment such as; R D department, designing and crating new technologies, before sale and bring together with market and customers. Finally, service department take care about our cars problem. Five Force Analyses Threats of New Entrants The automobile sector is could be most risky market on the world because you need to much money to invest on it, heritage is really important for customers and this sector is the first sector that affected from economic crises. Otherwise, without any new technology or price policy you will not survive much long and if someone decides to build up an automobile company, he/she will definitely work with local government. On the other hand, if someone wants to get this sector, he/she has got a change with new technological features. For instance; Fisker and Tesla are the new entrants at this sector and they invest their money on clean, hybrid and electrical engines. They also try to design good-looking car with solar panels and other recyclable energies. Bargaining Power of Suppliers In this case bargaining power of suppliers is not really strong. It is not powerful as healthcare sector or another sector because if people do not want to buy a private car, they can choose other transportation ways or the can choose nothing. However, in healthcare sector people absolutely need doctors, hospitals or medicine to survive but it is not same for this sector. In addition, globalization affect make peoples’ life easier and humans are used to it and buying a private car became a priority after purchasing a house. Generally, if a person owns a house, he/she will buy a car with how much money he/she got. This is the strongest part of the sector; unfortunately it has got negatives parts too. Bargaining Power of Buyers These sectors’ trends and demand is shaped by customer’s preferences, so the bargaining power of buyers is really strong. If humans do not like a model, they will not buy it and producers stop to produce it but if they like it producer need to produce it as much as it can to be successful. Right now, the demand on this sector is low-consumption engines and be not harmful to the environment so producers start to produce models and engines in this way, otherwise they cannot be able to sell a car. Availability of Substitutes In automobile industry, the availability of substitutes is not actually but there is only one way to change it is create new substructure concepts in the sector. For instance; Tesla and Fisker do that in a perfect way, they only focus on hybrid and electric engines and people recognize them with these concepts at everywhere. You cannot change industry but you can be able to change its direction. Intensity of Existing Rivalry There are many brands on the market, even in one country own more than one automobile brand, as a result of that the intensity of existing rivalry is really high. As I mentioned before that, there are five leader brands in the market but other big or small brands are successful as like them too. The most important think is the design of the automobile but now it has got no meaning because firms are usually work with same designers and models are not changing too much even in different brands. However, the most competitive concept is price policy according to the government’s tax payments systems. Key Success Factors for Automobile Sector There are different types of key success factor for automobile sector are based on the region, substructure features, purchase power. Producers need to show pay attention to these factors because it will determinate their sales numbers and profitability. The most important factor knows the region very well. I mean dealers and head quarter of the brand should be aware of the consumers’ requirements. Also they need to sale cars which are not be against to the governments’ legislations. For instance; European Union has got sharp and certain laws about carbon dioxide emission, so dealers need to focus on engines which are consuming few. However, United States not sign Kyoto Protocol, so they do not have any legislation for emissions right now, dealers can focus on high mass engines. In addition to the region, substructure features are crucial for auto makers because people always want to buy a car which has got advanced features even they will never use them. However, conscious consumer will demand low-consumption engines and brands need to produce engines according to that demand. In other words, firms need to decide their target audience perfectly and producing substructure features with these conditions. Lastly, the third factor is purchase power. In my opinion, this factor is the most crucial determinant in this sector because every brand starts to produce in same quality vehicles. However they need to know country’s economies and sale their models in that way (if we look at Exhibit 4). For instance; America one of the highest purchase power countries in the world and they really like to own cool, luxurious and spectacular cars, they can buy two three or even more than these number cars. In contrast, European nations have got the same purchase power but they want to buy one or two cars and they are looking to being useful, low consumption and quality vehicles. The Future of Automobile Sector In the future, transportation systems will be developing in all around the world because people want to move from A to B faster, comfortably, safely and cheaply. Producers need to know these requirements and produce car with these features. Firstly, brands need to focus on low-consumption cars, I mean hybrid and electric engines because they are cheaper than current technology and governments provide laws for this situation. Secondly, they need to produce safety cars than now because people will demand on secure system in the future. On the other hand, they need to produce usable cars such as Audis’ All Road, they have been developed for all road conditions and you can use them only in one car. Consequently, people will never forget or reject driving a car but producers need to answer climate, people and governments requirements. If someone produce a car with low price and costs with cover a long distance in a comfortably they will become the most successful brand in the world.

An Analysis of the Social Gradient of Health Essay Example for Free

An Analysis of the Social Gradient of Health Essay â€Å"The demonstration of a social gradient of health predicts that reducing inequality itself has health benefits for all, not simply for the impoverished or deprived minorities within populations. † (Devitt, Hall Tsey 2001) The above quote from Devitt, Hall and Tsey’s paper is a relatively well grounded and well researched statement which draws on contemporary theoretical sociological concepts to support the assertion that reducing inequality is the key to improving health for all. However the assertion that the demonstration of a social gradient of health predicts that a reduction in inequality will lead to health benefits for all is a rather broad statement and requires closer examination. The intention of this essay is to examine the social gradient of health, whose existence has been well established by the Whitehall Studies (Marmot 1991), and, by focusing on those groups at the lower end of the social gradient, determine whether initiatives to address inequalities between social classes will lead to health benefits for those classes at the lower end of the social scale. The effectiveness of past initiatives to address these social and health inequalities will be examined and recommendations made as to how these initiatives might be more effective. The social gradient described by Marmot and others is interrelated with a variety of environmental, sociopolitical and socioeconomic factors which have been identified as key determinants of health. These determinants interact with each other at a very complex level to impact directly and indirectly on the health status of individuals and groups at all levels of society; â€Å"Poor social and economic circumstances affect health throughout life. People further down the social ladder usually run at least twice the risk of serious illness and premature death of those near the top. Between the top and bottom health standards show a continual social gradient. † (Wilkinson Marmot 1998) In Australian society it is readily apparent that the lower social classes are at greater disadvantage than those in the upper echelons of society; this has been discussed at length in several separate papers on the social gradient of health and its effects on disadvantaged Australian groups (Devitt, Hall Tsey 2001, Robinson 2002, Caldwell Caldwell 1995). Within the context of the social gradient of health it can be inferred that Indigenous groups, for example, are particularly susceptible to ill health and poor health outcomes as they suffer inordinately from the negative effects of the key determinants of health. A simple example of this is the inequality in distribution of economic resources: â€Å"Average Indigenous household income is 38% less than that of non-Indigenous households. † (AHREOC 2004). The stress and anxiety caused by insufficient economic resources leads to increased risk of depression, hypertension and heart disease (Brunner 1997 cited in Henry 2001). Higher social status and greater access to economic resources is concomitant with a reduction in stress and anxiety levels, as individuals in these groups have more control over economic pressures which create this stress. This simple comparison proves that the social gradient of health accurately reflects how socioeconomic determinants affect the health of specific social classes at the physiological level. An extension of the research into the social gradient and the determinants of health is the examination of the pathways through which specific social groups experience and respond to these determinants. These ‘psychosocial pathways’ incorporate psychological, behavioural and environmental constraints and are closely linked to the determinants of health; â€Å"Many of the socio-economic determinants of health have their effects through psychosocial pathways. † (Wilkinson 2001 cited in Robinson 2002). These pathways have been demonstrated by Henry (2001) in the conceptual model of resource influences (Appendix A), a model which illustrates the interaction between the constraints mentioned above and their impact on health outcomes. Henry states that a central differentiator between classes is the amount of control an individual feels they have over their environment. Whereas an individual from a lower class group holds a limited sense of control over their well being and consequently adopts a fatalistic approach to health, those in higher classes with a stronger sense of control over their health are more likely to take proactive steps in ensuring their future wellbeing. This means that both individuals will cope differently with the same health problem. This is partly as a result of socioeconomic or environmental determinants relative to their situation, but it is also a result of behavioural/physical constraints and, most importantly, the modes of thought employed in rationalising their situation and actions. In essence these psychosocial pathways occupy an intermediate role between the social determinants of health and class related health behaviours. This suggests that, while the social gradient of health is a good predictor of predisposition to ill health among specific classes, it cannot predict how reducing inequality in itself will affect health outcomes or how a specific social class will respond to these changes. An examination of some initiatives aimed at reducing inequality in the indicators of health outcomes reveals this problem; â€Å"In 1996 only between 5% and 6% of NT Aboriginal adults had any kind of post secondary school qualification compared with 40% of non-Aboriginal Territorians. † (ABS 1998). Within the context of the social gradient of health, education is an important indicator of health outcomes. It is evident from the quote above that there exists huge inequality within the Northern Territory education system; this suggests an increased likelihood of ill health for Aboriginal people in later life. Even though there have been initiatives to address this inequality in one of the indicators of health outcomes (Colman 1997, Lawnham 2001, Colman Colman 2003), they have had only a minimal impact on Indigenous second level education rates (ABS 2003). This is partly due to the inappropriateness of these initiatives (Valadian 1999), but it is also due to the disempowerment and psychosocial malaise (Flick Nelson 1994 cited in Devitt, Hall Tsey 2001) which are a feature of Indigenous interaction and responses to the social determinants of health. Research has also been carried out into how effecting change in the inequalities in other indicators of health might affect health outcomes. Mayer (1997) cited in Henry (2001) examined the effects of doubling the income of low income families and concluded it would produce only modest effects. Henry believes that this points to the strong influence of the psychological domain in influencing health behaviours. This suggests that the key to better health for all lies not just in reducing inequality between the classes but also in changing those elements of the psychological domain which influence health behaviour. Another example of the gap between initiatives to reduce inequality and their impact on those inequalities is evident in an examination of economic constraints experienced by Indigenous Australians on social welfare. Price and McComb (1998) found that those in Indigenous communities would spend 35% of their weekly income on a basket of food, compared to just 23% of weekly income for those living in a capital city for the same basket of food. To combat this inequality it would seem logical to reduce the price of food in Indigenous communities or else increase the amount of money available to those living in remote communities, i. e. a socioeconomic approach. It has already been established that increasing income has only modest effects and in combination with the fact that smoking, gambling and alcohol account for up to 25% of expenditure in remote communities (Robinson 2002), how can it be guaranteed that the extra funds made available through either of the two suggestions above would be employed in achieving a desirable level of health? One possible suggestion is that a socioeconomic approach must be complemented by a psychosocial approach which addresses those abstract modes of thought, cultural norms and habits and health related behavioural intentions which dictate healthful behaviours. â€Å"Culture and culture conflict are factors in Aboriginal health. But instead of the emphasis being placed on Aboriginal failure to assimilate to our norms, it should rather be put on our failure to devise strategies that accommodate to their folkways. † (Tatz 1972 cited in Humphrey Japanangka 1998) Any initiative which hopes to resolve inequality in health must incorporate a sound understanding of the influence of the psychosocial pathways relative to the class level and cultural orientation of that group, otherwise its success will be modest at best. Using Henry’s model of resource influences provides a framework for understanding how addressing these psychosocial pathways can lead to greater uptake of initiatives designed to address these inequalities. An analysis of the National Tobacco Campaign (NTC 1999) reveals how this initiative failed to impact significantly on Indigenous smoking rates. This was a purely educational initiative which aimed to raise awareness of the effects of smoking on health. One of the primary flaws of its design was its failure to even acknowledge those Indigenous groups at the lower end of the social scale; it also failed to communicate the relevance of its message to Indigenous people; â€Å"The only thing is that when it comes to Aboriginal people, they will not relate to Quit television advertisements because they don’t see a black face†¦. I’ve heard the kids say ‘Oh yeah, but that’s only white fellas’. They do. † (NTC 1999) Not only did this initiative fail to connect with Indigenous people, it also failed to influence the elements of the psychological domain which legitimate such high rates of smoking. Within Indigenous culture smoking has become somewhat of a social practice, with the emphasis on sharing and borrowing of cigarettes (Gilchrist 1998). It is ineffectual to put across messages about the ill effects of smoking if the underlying motivation of relating to others is not addressed. In a report conducted on Indigenous smoking (AMA APMA 2000 cited in Ivers 2001), it was suggested that one of the key themes of an initiative aimed at reducing indigenous smoking rates should be that smoking is not a part of Indigenous culture. The ‘Jabby Don’t Smoke’ (Dale 1999) is an example of an initiative whose design attempted to influence accepted social norms. Its focus was primarily on children, thereby acknowledging the importance of socialization and the instillation of cultural norms at an early age. Unfortunately no data is available detailing its impact on smoking rates. As mentioned earlier in this essay, another feature of the psychological domain which has an effect through the psychosocial pathways is the modes of thought employed in rationalising actions and responses to various determinants and constraints. Self efficacy or the amount of perceived control over one’s situation is an important contributor to health status; â€Å"Empowered individuals are more likely to take proactive steps in terms of personal health, whilst disempowered individuals are more likely to take a fatalistic approach† (Henry 2001) Examples of initiatives which have strived to empower Indigenous people in being responsible for their own health include ‘The Lung Story’ (Gill 1999) and various health promotion messages conveyed through song in traditional language ( Castro 2000 cited in Ivers 2001, Nganampa Health Council 2005). By encouraging Indigenous people to address these issues in their own way, the amount of perceived control over their own health is increased thereby facilitating a greater degree of self efficacy. The intention of this essay has not been to deny that the social gradient of health does not exist or that it is not an effective tool in creating understanding of where social and health inequalities lie. Unfortunately programs and initiatives which have been guided by the social gradient of health and have been purely socioeconomic in their approach have failed to have a significant, sustainable effect on health inequalities. In the US, despite socioeconomic initiatives to resolve inequality, the gap between upper and lower class groups has actually widened in recent times (Pamuk et al 1998 cited in Henry 2001). The scale of the intervention required to ensure a sustained impact on health inequalities has been discussed by Henry (2001), he also highlights the need to garner substantial political will in order for these changes to happen and makes the point that those in the upper classes are relatively content with the present status quo. This essay has attempted to demonstrate that in an environment where well grounded, evidence based socioeconomic initiatives are failing to have the desired out comes, it is perhaps time to focus more on altering those strongly held health beliefs which not only dictate responses to social determinants of health but also dictate responses to initiatives designed to address these inequalities; â€Å"Healthful behaviours are due to more than just an inability to pay. A mix of psychological characteristics combines to form distinctive behavioural intentions†. (Henry 2001) In the current environment of insufficient political will and finite resources it would be prudent to use every tool available to ensure initiatives aimed at reducing inequality between the classes will have the maximum amount of benefit. This approach is not a long term solution, but until it is possible to achieve the large scale social remodelling necessary to truly remove social inequality, and consequently health inequality, it is the most viable solution available. REFERENCES. ABS, 2003. ‘Indigenous Education and Training’, Version 1301. 0, A Statistical Overview, Australian Bureau of Statistics, Canberra, viewed 22nd August 2005, http://www. abs. gov. au/Ausstats/[emailprotected] nsf/Lookup/FC7C3062F9C55495CA256CAE000FF0D6 A statistical overview of Aboriginal and Torres Strait Islander peoples in Australia 2004, Australian Human Rights and Equal Opportunities Commission (AHREOC), Sydney, viewed 20th August 2005, http://www. hreoc. gov. au/social_justice/statistics/. Brunner, E. 1997. ‘Stress and the Biology of Inequality’. British Medical Journal. No. 314, pp 1472-1476. Castro, A. 2000. ‘Personal Communication’. No other details available. Caldwell, J. Caldwell, P. 1995. ‘The cultural, social and behavioural component of health improvement: the evidence from health transition studies’, Aboriginal Health: Social and Cultural transitions: Proceedings of a Conference at the Northern Territory University, Darwin 28-30th September. Colman, A. 1997. ‘Anti-racism Course’, Youth Studies Australia, Vol. 16, Issue 3, p. 9, viewed 22nd August 2005, EBSCOhost Database Academic Search Premier, item: AN 12878155. Colman, A. Colman, R. 2003. ‘Education Agreement’, Youth Studies Australia, Vol. 22, Issue 1, p. 9, viewed 22nd August 2005, EBSCOhost Database Academic Search Premier, item: AN 9398334. Dale, G. 1999. ‘Jabby Don’t Smoke, Developing Resources to Address Tobacco Consumption in Remote Aboriginal Communities’, Paper presented to the Eleventh National Health Promotion Conference, Perth. 23-26th May. Devitt, J. , Hall, G. , Tsey, K. 2001. ‘An Introduction to the Social Determinants of Health in Relation to the Northern Territory Indigenous Population’, Occasional Paper. Co-operative Research Centre for Aboriginal and Tropical Health. Darwin. Flick, B. , Nelson, B. 1994. ‘Land and Indigenous Health’, Paper No. 3, Native Titles Research Unit, Australian Institute of Aboriginal and Torres Strait Islander Studies, Canberra. Gilchrist, D. 1998. ‘Smoking Prevalence among Aboriginal Women’, Aboriginal and Islander Health Worker Journal, Vol. 22, No. 4, pp. 4-6. Henry, P. 2001. ‘An Examination of the Pathways through Which Social Class Impacts Health Outcomes’. Academy of Marketing Science Review, vol. 3, pp 1-26. Humphery, K. , Japanangka, M. D. , Marrawal, J. 1998. â€Å"From the Bush to the Store: Diabetes, Everyday Life and the Critique of Health Service in Two Remote Northern Territory Aboriginal Communities. † Diabetes Australia Research Trust and Territory Health Services, Darwin. Ivers, R. 2001. ‘Indigenous Australians and Tobacco; A Literature Review’, Menzies School of Health Research and the Cooperative Research Centre for Aboriginal and Tropical Health, Darwin. pp. 67-80, 93-107. Lawnham, P. 2001. ‘Indigenous Push at UWS’, The Australian, 27th June, 2001. p. 34, viewed 22nd August 2005, EBSCOhost Database Academic Search Premier, item: AN 200106061025662941. Marmot, M. G. , Davey Smith, G. , Stansfield, S. , Patel, C. , North, F. , Head, J. , White, I. , Brunner, E. and Feeney, A. 1991. ‘Health Inequalities among British Civil Servants: the Whitehall II Study’, Lancet, 337, 1387. reading 1. 5. Mayer, S. 2001. What Money Can’t Buy: Family Income and Children’s Life Chances. Harvard University Press, Cambridge, Massachusetts. National Tobacco Campaign. 1999. ‘Australia’s National Tobacco Campaign: Evaluation report Volume 1’. Commonwealth Department of Health and Aged Care, Canberra. Nganampa Health Council. 2005. Nganampa Health Council, Alice Springs. Viewed 23rd August 2005, http://www. nganampahealth. com. au/products. php Pamuk, E. , Makuc, D. , Heck, K. , Reubin, C. , Lochner, K. 1998. ‘Socioeconomic Status and Health Chartbook’. Health, United States. National Centre for Health Statistics, Maryland. Price, R. , McComb, J. 1998. ‘NT and Australian Capital Cities Market Basket Survey 1998’. Food and Nutrition Update, THS, Vol. 6, pp. 4-5. Robinson, G. 2002. ‘Social Determinants of Indigenous Health’, Seminar Series, Menzies School of Health Research. Co-operative Centre for Aboriginal Health. Valadian, M. 1999. ‘Distance Education for Indigenous Minorities in Developing Communities’, Higher Education in Europe, Vol. 24, Issue 2, p. 233, viewed 22nd August 2005, EBSCOhost Database Academic Search Premier, item: AN 6693114. APPENDIX A. CCONCEPTUAL MODEL OF RESOURCE INFLUENCES. [pic] Henry, 2001. .

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison

Islamic Bank of Britain vs. Dubai Islamic Bank Comparison Chapter 1: Introduction 1.1- Introduction This chapter discusses the aims and objectives of the project. A detailed background of the study, research rationale and theoretical framework has also been discussed in this chapter. At the end of this chapter, the report structure of this thesis is mentioned. Research Title Islamic Bank of Britain vs. Dubai Islamic Bank (A Comparative Study) 1.2- Background of Study Islamic banking is very different as opposed to conventional banking, as it works on the principles of Islam and Sharia which entails avoiding interest and gives more preference to invest in a business and in sharing of profit and loss. There are several Islamic banks all over the world and all of them operate on the Sharia principles, however some progress to profit and some decline to loss and a prime example of this is the Islamic Bank of Britain. The Islamic bank of Britain was founded in 2004 by a group of Middle East investors. This was the first Islamic Bank in the United Kingdom. The formation of this bank was based on the simple foundation of Sharia conduct with typical products and services, however the bank underperformed, more so than anticipated. Losses were evident from the initiation of its business in the United Kingdom. Moreover, according to Financial times and its 2008 income statement, a loss of was highlighting, displaying major cause for concern. On the other hand, the Dubai Islamic Bank which was founded in UAE by Arabic investors and also adheres to Sharia principles has reported quarterly profit of US$ 122.5 million. This then raises the questions as to why Islamic Bank of Britain has been unable to attract the customers and what are the main factors causing losses for the bank every year. 1.3- Research Aim The aim of conducting this research is to discover the factors and causes troubling Islamic banking in United Kingdom as one of the major Islamic bank has accumulated losses for a considerable period of time, although its entrepreneurs are from the Gulf where Islamic banking has been growing and prospering. Moreover the rules of Sharia apply whether the Islamic Bank is in the UK or in UAE. After uncovering the underlying causes of the Islamic bankings plight in the United Kingdom recommendations will be drawn up to rectify the situation and highlight how improvements can be made. Circumstances will further be examined in form of comparisons between the United Kingdom and the UAE Islamic banks. 1.4- Research Objectives The objectives of this research are as follows: To investigate the performance of Islamic banks in UK and UAE To explore the reasons that affect the performance of Islamic Banks To study the investment portfolio of Islamic Banks in UK and UAE To analyse the impact of risks on the performance of Islamic Banks in UK and UAE 1.5- Research Rationale Islamic banking is a relatively new topic in the financial sector and especially in UK where the first Islamic bank started its business only in 2004. Though Islamic banks are quite successful across the globe, the first Islamic bank established in UK has not been able to gain significant success in the past 5 years. There is currently insufficient research conducted in regards to the performance of Islamic banks in the UK. This fact compels one to investigate this issue in order to gain some strong knowledge about the topic. 1.6- Theoretical Framework This research was designed in a structured format. Initially, a detailed study of literature was conducted. The purpose of this literature review was to gain an insight in regards to Islamic banking functioning across the globe. After reviewing the relevant literature, assessments were made as to how different Islamic banks improve their performance by designing their investment policies and how different type of risks can affect the performance of Islamic banks. This assisted in the analysis of both Dubai Islamic Bank and Islamic Bank of Britain, which further assisted in arriving at a conclusion to determine the reasons of poor performance of Islamic Bank of Britain. 1.7- Structure of Thesis Chapter 2 provides a review from literature which has been distributed into three sections. The first section describes the origin of banking and the main purpose of starting the banking. Second section explains about Islamic banking and its main functions. Chapter 3 discusses the current business operations of both the banks. I have given a detailed description of where both the banks invest their assets and how do they manage the risks. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. Chapter 4 highlights the methodology used in this thesis. A detailed description of the research methods used in thesis has been given in this chapter. All the sources of data used in this thesis have been explained in details and at the end of this chapter; I have given a detailed description of different accounting ratios used in this thesis. In this chapter, I have given a detailed description about the research methods used in this thesis. Chapter 5 comprises of different financial calculations. I have calculated various financial ratios for both the banks in order to do a side by side comparison to find out the reasons of poor performance of Islamic Bank of Britain. Chapter 6 includes a side by side comparison of the financial ratios of both the banks calculated in chapter 5. In addition to this, regression analysis has been given between certain risk ratios and profitability ratios to find out the impact of risk levels on returns. The possible reasons of poor performance of Islamic Bank of Britain in line with literature review and results in chapter 3 have also been discussed in this chapter. Chapter 7 discusses the conclusion of this thesis. All the research questions have been answered in an appropriate manner in line with the literature review and the results discussed in chapter 3, 5 6. At the end of this chapter, I have discussed any limitations of this research work. Chapter 2: Literature Review 2.1- Introduction This chapter provides a review from literature. It has been distributed into three sections. The first section describes about origin of banking and the main purpose of starting the banking. The second section explains Islamic banking and its main functions. Lastly the third section explains the origin of Islamic banking in Dubai and United Kingdom. 2.2- History of Banking The origins of banking are believed to have started after coinage, in the area between river Tigris and river Euphrates. People could keep their belongings safely in royal palaces and holy places. Within same period, some laws were developed and these laws are considered to be one of the earliest forms of laws (Glyn, 2002). 2.3- Banking Business A business that provides financial services to different customers and businesses is called as banking. A detailed definition of banking business can be a financial institution that accepts, collects, transfers, pays, safeguards or lends money for its customers (Sobczak, 1997, pp 6). 2.4- Islamic Banking A financial institution that operates under the principles of Islamic Shariah and it does not accept or pay out any interest (riba) is called an Islamic bank (Sadeque, 1980). Islamic banking is based on the idea of sharing profit and losses. Both the investor and the bank share any profits and losses as agreed at the time of opening the account (Venardos, 2006, pp 1). 2.5- History of Islamic Banking A few decades ago, conventional banks and other financial organisations were not providing the customers with any Shariah compliant services. This led to the necessity of starting such a financial institution that could provide the Muslim clients with the Shariah compliant services. The original Islamic bank initiated business in 1963. During the later years of 1970s, the Association of Islamic banks was established. Initially, Islamic banks were only operating in Islamic countries. In 1980, the first Islamic bank was open in a non-Islamic country and it further expanded into additional European and American countries. Within this short span of time, Islamic banks have progressed very well all over the world (Venardos, 2005, pp 65). 2.6- Services offered by Islamic Banks Islamic banks offer a range of services to their customers. A detailed description of these services is explained below. 2.5.1- Deposit Accounts Islamic banks offer three types of deposit accounts: current, savings and investment accounts. The customers are assured that they can withdraw their money on demand if agreed by both parties at the time of opening the account. In Islamic banking, demand deposits are places in a contract called Wadiah (trust). Islamic banks guarantee their customers to return their principal sum on demand. The banks cannot use this principal sum unless authorised by the customers. As the banks do not use this amount for their investments they do not pay back any profits on such accounts. Some banks offer some returns in the form of Hibah (gift). Islamic banks are using some innovative techniques for offering different products and most of the demand deposit accounts are structured within the contract of Mudharabah (Saeed, 1996, pp 101). 2.5.2- Current Accounts Current or demand deposit accounts are the same as those of conventional banks. Islamic banks guarantee the principal amount on demand (Hassan and Lewis, 2007, pp 131). 2.5.3- Saving Accounts Saving accounts are different from conventional banks in Islamic banking. In some Islamic banks, the depositors authorise the banks to use their deposited money, however they are guaranteed that they will be returned the full amount back from the bank. No profit is guaranteed in this sort of accounts. The banks usually use these deposits for short term projects (Al-Omar and Abdel-Haq, 1996, pp 51). 2.5.4- Investment Accounts Islamic banks accept the investment deposits for a fixed or unlimited time period. The investors agree at the time of opening the account to share any profit and loss at an agreed proportion. The banks do not guarantee to return the principal amount. Usually, the investment deposits have an expected maturity and expected rate of returns. Such investments are places under Mudharabah contract in which both the depositor and the bank agree at a ratio to share any profits or losses. This type of investment is totally different from conventional banks as there is no risk of losing any thing in those investments (Iqbal and Llewellyn, 2002, pp 198). 2.7- Financing modes in Islamic Banking Different banks use different modes to acquire assets and finance different projects. These modes can be distributed into three different areas namely investment, trade and lending services. 2.6.1- Investment Finance Khan (2009) says that Islamic banks can do investment financing in three different ways. First type of investment financing is called as Musharaka. In this type of investment financing, the bank can join another organisation or entity to open a joint venture. Both the parties participate in this venture in different roles. Both the parties agree on a set ratio of sharing any loss or profit before making such a venture. This type of venture is an independent entity and the bank can withdraw from this venture after an initial period. Second type of investment financing is called as Mudarabha in which the bank finances the projects and the clients provide with their expertise, labour and management. Both the parties i.e. bank and the clients share the profit but in case of any losses, its only the bank that will bear the losses. In third type of investment financing, the banks finance on the basis of an expected rate of return. If the profits are more than the expected rate of return, t he bank shares it with the clients but if the returns are lower than the expected rate, the bank will accept the lower rates. In case of any losses, the bank will share it (Khan, 2009). 2.6.2- Trade Finance Khan (2009) says that Islamic banks can do trade financing in different ways. The most common type of trade financing is called as Mark-up in which the bank buys an item for its client and the client agrees to pay back the bank the price and the agreed profit at later stage. In second type of trade financing, the bank buys an item for the client and then leases it to client for an agreed time period. At the end of the lease, the client pays the balance amount to the bank and becomes the owner of the item. Another type of trade financing is called as hire-purchase in which, the bank buys an item for its client and then hires it to the client for an agreed time period. At the end of this time period, the client becomes the owner automatically. Another type of trade finance in Islamic banking is called as sell-and-buy-back in which a client sells his property to the bank for an agreed time period at a condition that the client will buy back the property at an agreed rate. 2.6.3- Trade Finance Khan (2009) says that Islamic banks have different types of lending services including loans, no-cost-loans and overdrafts. Islamic banks offer the loans by charging the service charge. The bank does not charge any interest but they apply service charges to cover their expenses. Some Islamic banks offer the loans to needy people at no costs. Some Islamic banks also offer the overdraft services to the customers subject to some limits. The banks charge a certain amount if the customers request higher overdraft limits. 2.6.4- Miscellaneous Services Islamic banks offer additional services such as collecting the bills on behalf of different organisations, money transfers, trading foreign currency etc. Some banks charge a commission amount if their own money is not involved in such transactions. 2.8- Risks in Islamic Banking Khan (2003, pp 130-131) says that Islamic banking faces certain risks like conventional banking. The nature of these risks varies with the structure of the bank. As discussed earlier, Islamic banks usually operate under two different kinds of models. First type of model is known as the two tier Mudarabah model. This type of model operates under the principle of sharing both the profits and losses. The latter model is known as the single tier Mudarabah model. In this type of model, both the parties share the profit just on the liabilities side. Lewis and Hassan (2007, pp 144) say that Islamic banks have to follow certain rules based on Islamic Shariah. Both the authors believe that in this kind of situation, the nature of risk changes for Islamic banks and only a careful management of these risks can result in the better performance of the bank. Islamic banks face following risks: Operational Risks Credit Risks Liquidity Risks Withdrawal Risks Legal Risks 2.7.1- Operational Risks El-Hawary (2005, pp 21) says that this type of risk is caused when the people working for the bank fail to perform their duties appropriately or the systems used by the bank staff fail. Most of the time, this risk is caused due to the employees of the bank or any frauds. El-Hawary (2005, pp 21,22) has quoted the example of Dubai Islamic bank when the bank suffered huge losses due to an incompetent person during the later years of 1990s. Iqbal et al (1998) considers that the Islamic banks face more operational risk than conventional banks as a minor problem in computer systems can cost them too much. 2.7.2- Credit Risk Sundrarajan and Errico (2002, pp 5) believe that Islamic banks administer the profit loss accounts differently from conventional banks. Islamic banks determine the profit and loss ratios of different projects before the start of any agreement. On the basis of this expectation, Islamic banks set a share ratio that sometimes can cause them losses. In addition to this, Islamic banks carry on auditing the financial projects. In such situations, it becomes very difficult for the banks to standardise their financial products. Cihak and Hesse (2008, pp 5) believe that in PLS (Profit and loss sharing) accounts, the banks suffer losses as well if the profits are lower or the project ends in a loss. They believe that this is due to the reduced level of assets in the balance sheet. Sundrarajan and Errico (2002, pp 5) believe that in Mudarabah accounts, the banks can only share the profits but if the business ends up in loss, it becomes very difficult for the bank to recover the loans back due t o some legal complications as the Mudarabah accounts do not allow the Islamic banks to interfere in the business. On the other hand, in the case of Musharaka account, Islamic banks can monitor the financed projects and it reduces the risk levels significantly. 2.7.3- Legal Risk Haiwad (2008) says that Islamic banks have different kind of legal documents. He considers that due to compulsion of Islamic accounts to be Shariah compliant, the banks need to prepare a complex set of legal documents. In addition to this, the banks need to consider the local laws of the country as well before making any legal documents. Sometimes, it is very complicated to develop the legal documents that comply with both the Shariah law and the local law of the country. It ultimately increases the legal risk levels in the Islamic banks. 2.7.4- Liquidity Risk Aburime (2009) says that Islamic banks face the liquidity risk when the banks fail to sell their fixed assets at the desired rates. The banks usually develop the need to sell their fixed assets to meet their liabilities. This risk is increased due to the fact that Islamic banks do not accept any loans on interest so the Islamic banks are unable to come out of this situation by taking loans from other banks. Aburime (2009) considers that this risk is dependent on the economy of the country. The destabilisation of economy increases liquidity risk. 2.7.5- Withdrawal Risk Aburime (2009) says that sometimes, Islamic banks do not provide the customers with handsome amount of profits and it can lead to the customers withdrawing their money from the bank. In such situations, withdrawal risk is increased significantly. Aburime (2009) believes that this risk is more in Islamic banks as compared to the conventional banks. 2.9- Do Risk Levels affect Performance? Mencia (2009) says that a business can produce more money if there is greater risk at the start of the business provided the risks are managed appropriately. Kunt et al. (2009) says that those banks that generate income without any interests are at greater risks and can give better returns as compared to those that generate interest money. Haque and Mirakhor (2006) say that in Islamic banks, customers are at greater risk to lose their money and the banks are at lesser risk as Islamic banks do not guarantee any return at the time of account opening and in few accounts both profit and loss are shared. This fact can deter customers, leading them to invest their money in those banks where they do not have any risk to lose their money. Shim et al. (2000, pp 176, 177) has suggested that the extent of financing the business through debts is a useful indicator of risk levels in the business. They believe that if a business is financed more through debts, it is at higher risk. Helfert (2001, pp 128) has also same beliefs as that of Shim et al. (2000, pp 176, 177). He considers that financing the business through debts increases risks but at the same time it increases the probability of better returns as well. Falkenstein (2009) conducted research to explore the effects of risk levels on the returns of different businesses. His research results showed that the businesses that used more debts to finance their assets were at higher risk as compared to those that did not finance their assets through debts. The businesses that were at higher risk and that managed their risks appropriately produced better returns than those that were at lower risks. 2.10- Effective Risk Management in Islamic Banks Management of different types of risks is very different from conventional banks and due to some restrictions of Shariah laws it is very difficult to manage these risks. Effective credit risk management is a very complex procedure in Islamic banks as there is no permission of paying or receiving any interest. In addition to this, Sharias law does not allow to penalise the clients and this facility in Islamic banks is misused by some clients. In such situations, there are long delays in paying back the principal amount and it reduces the assets of the bank. Most of the Islamic banks use collaterals and take pledges from their clients. The best way to avoid the misuse of the facilities provides by Islamic banks, the banks can take more collateral before the start of different contracts. In addition to this, if the banks take personal guarantees before sanctioning the loans, it can help in reducing credit risk as well (Hawray et al., 2004). Shariah law forbids dealing harshly with those people that are in bad financial crisis. This facility can be misused by the clients. This issue costs the Islamic banks and it should be taken seriously. A comprehensive system to credit score each client before offering them the loan can make a huge difference. Furthermore, the banks should ask the clients to sign on possible enforcement as within Islamic law a person can be enforced if he has signed before the start of the contract. In addition to this, Islamic banks working in United Kingdom can think about legal actions against those that were unable to pay back the loans (Wilson, 2007). The nature of legal risks is very different in Islamic banks as compared to conventional banks as Islamic banks have to fulfil the requirements of both Shariah laws and local laws of the country they operate in. This makes the Islamic banking operations very complicated and legal risks are increased. The best way to come out of such situations is to make sure that prior to writing the contracts, requirements of local legislations are fulfilled as well. This can aid the banks in developing good knowledge about the possible ways of enforcement if a client fails to repay his loan. In Sharia law it is allowed to enforce those clients that file false claims. Bearing this fact in mind, Islamic banks should consider including this in the contracts. This will help the Islamic banks to reduce legal, liquidity and withdrawal risk as people will not attempt to misuse the lenient system (Djojosugito, 2008). 2.11- Diversification in Islamic Banks The banks that provide diverse financial services or spreading different risks into different geographic areas are likely to achieve improved diversification. In the case of Islamic banks, geographical diversification helps in breaking the banks concentration in limited areas and the bank usually gets good borrowers. (Greuning and Iqbal, 2008, p 264). Islamic banks mostly deal in the real estate business and most of these banks start their business from their regions and carry on working in that region. The real estate business has suffered huge losses in the past few years due to the effects of recession and interest rate variations across the globe. Due to this fact the investments in real estate have not proved very fruitful for such organisations. In order to gain good profits, Islamic banks need to diversify into different sectors and geographic areas as it will diversify the investments and the risks can be spread across different areas where the banks can get good borrowers and good investment opportunities (Islamic Investment Banking, 2009). There are different sectors that can prove beneficial for Islamic banks. The most important sector for diversification in Islamic banks is Insurance (Takaful). This sector is highly under developed even in big Islamic countries such as Malaysia where this sector is not developed much. Concentrating on this sector can prove very beneficial for Islamic banks (Thomas, KPMG.COM). Expansion of Islamic banks across different countries can prove to be very beneficial for them. Currently, Islamic banks are working in a lot of countries but their business size is very small. If these banks diversify into different zones of the world, it is inevitable to attain benefits. Furthermore, Islamic banks can consider to make strategic alliances with those conventional banks that wish to start Islamic banking as it will not only increase the size of Islamic banks but will help in obtaining a diverse work force as well. Finally, Islamic banks can get diverse competent staff that can help in improving different systems and it will ultimately result in reduced operational risks (Iqbal et al., 1998). Making of strategic alliances with other banks that wish to start Islamic banking will also help in reducing the liquidity risk. Making strategic alliances will help Islamic banks to increase their assets and the current assets level of Islamic banks will increase. This will help the Islamic banks to pay current liabilities and liquidity will be improved. Furthermore, strategic alliances will increase peoples trust in Islamic banks and the level of investments will be increased that will ultimately increase current assets and better liquidity of the banks (Iqbal et al., 1998). Chapter 3: Business Cases 3.1- Introduction This chapter will provide an overview of the current business operations of both the banks. Detailed descriptions of where both the banks invest their assets and how they manage the risks will follow. The purpose of this chapter is to find out how different investment and risk management techniques help the Islamic banks to give better performance. 3.2- Islamic Bank of Britain Islamic Bank of Britain started its business in UK in September 2004. This bank is the first Islamic Bank that started its business in UK. The bank is approved by FSA (Financial Services Authority). 3.2.1- Shareholders The bank has 10 major shareholders holding different levels of share in the bank. The biggest shareholder of the bank is Al Amal Investment and Trading that holds 52% of the total shares of the bank. IIB European Investment Company is the second major shareholder of the bank and it holds 10% shares of the bank. BNP Paribas Bahrain holds 8% of the shares; Mr. Al Rajhi holds 7% of the shares. The remaining 23% shares are owned by 6 other shareholders. 3.2.2- Investments The bank comprises of a board of directors and it is their responsibility to decide upon the investments. Most of the time, the bank invests its money in buying different properties, costly metals, different currencies etc. The bank mostly concentrates in buying the properties in United Kingdom. The board of directors decides all these matters in such a way that can be beneficial for its investors. 3.2.3- Services offered by the Bank The bank offers three main types of services to its clients Personal Business Premier 3.2.3-1. Personal Services In personal services, the bank offers current accounts, saving accounts and home purchase plans to its customers. In addition to this, the bank also offers personal finance to its customers. 3.2.3-2. Business Services In business services, the bank offers its clients business current, business savings, business finance, charity accounts and commercial property finance. 3.2.3-3. Premier Services The bank offers this service to those clients that are highly paid (at least  £100,000 per annum) and to those who can deposit more than  £75,000 in their account with a view to purchasing property in the UK that is worth more than  £250,000. 3.2.4- Risk Management in the Bank Islamic Bank of Britain manages its risks in a systematic way. Board of directors has the responsibility of managing the risks with the help of some committees assisting them. They have some written policies to manage the risks that are reviewed on a regular basis by an audit committee that is responsible to measure the risk levels and start the risk management after a certain risk threshold. The bank faces credit risk, liquidity risk, market risk and operational risk. A brief description of risk management is given below. 3.2.4-1. Credit Risk Management The bank has a systematic approach to manage the credit risk. To manage this risk certain producures are put into place such as the following: The bank makes credit policies The bank sets credit limits after assessing the profile of each borrower Credit risk assessment before start of agreement Collaterals for a few loans but in most accounts the bank does not ask for any collateral 3.2.4-2. Liquidity Risk Management The treasury department of Islamic Bank of Britain is responsible to manage liquidity risk. The bank uses following steps to manage liquidity risk; The treasury department maintains a portfolio of short term assets that can be liquefied. Comparison of liquid assets with asset maturity against any customer deposits Submission of any mismatches in liquid assets and asset maturity to financial services authority on quarterly basis 3.2.4-3. Market Risk Management The bank has a systematic approach to manage the market risk. To manage risks, the following procedures are adhered to: Profit rates for few accounts are agreed at the time of agreement start. Maturity profiles are constantly reviewed. Rates are agreed on a monthly basis for consumer finance transactions. Long term home purchase plans and commercial property finance are benchmarked against market measure. Process is assessed every six months. Profit rates on Mudaraba account are reviewed every month. 3.2.4-4. Operational Risk Management The bank has a systematic approach to manage the market risk. The board of directors of the bank is responsible to manage the operational risks. There are some risk committees that manage this risk under the guideline of the board of directors. The purpose of operational risk management is to implement such a system that can support the process efficiency and meeting the customer needs. To manage this risk the following procedure is respected: The bank aims to manage this risk by cutting down the costs on certain things. Getting reports from risk committees over regular periods of time 3.3- Dubai Islamic Bank Dubai Islamic Bank was formed in 1975 and is considered to be the first fully-fledged Islamic Bank in the world. The bank uses the latest innovative technology in its day-to-day operations. The bank is considered to be the undisputed leader in the field of Islamic banking and sets its examples for new starters in Islamic banking. A lot of Islamic banks in the world including Arab countries follow Dubai Islamic Bank to start and run their day-to-day operations (http://www.alislami.ae/en/index.htm). 3.3.1- Shareholders The Government of Dubai is the major shareholder of the bank and other shares are held by additional stakeholders in Dubai. 3.3.2- Investments The bank invests its money all over the world and is open to any businesses that require financing through the bank. The bank invests in properties, c