Technology ethis in the classroom Essay Example | Topics and Well Written Essays - 750 words

Technology ethis in the classroom - Essay Example When computers are properly utilized, they can be good tools for education, as well as an investment. Everyday, schools, as well as teachers and students, are reliant on computers in the performance of everyday activities. Teachers can use them in recording student grades, as well as the reception and sending of mail. The individual can use them to create, store, and manage critical information. Therefore, they must be protected from loss, misuse, and damage. For instance, school districts are expected to ensure that a student’s information regarding learning problems, grades, attendance rates, and personal data is protected from loss and maintains confidentiality (Barcalow et al 1). While the use of the internet has significantly revolutionized communication, as well as provided new educational tools for student learning, it has also come with risks and raised ethical issues for all students in different grades (Sandler 1). This has also made for various opportunities for ill egal and inappropriate behavior, as well as behaviors that are deemed unsafe for the students. More K-12 educators, progressively, have come to appreciate the urge and importance of utilizing the internet for instructions, as well as teaching and familiarizing the students with knowledge and critical thinking skills required for production of responsible citizens in and out of school. Some school districts have successfully completed the incorporation of internet safety and security lessons into their curricular, in preparing students from every grade for responsible and ethical behavior when operating online. I would proceed to implement security through teaching students to raise questions on the reliability and authenticity of websites that they access (Sandler 1). The learners need to be provided, as well as permitted to utilize specific websites for research purposes. Additionally, the students need to be provided by a protocol set for which they are required to follow if somet hing that they find appropriate appears on the computer screen. Most of the cover news on issues that have to do with internet safety and security issues are mainly focused on the young learners and, for this reason, it is vital to begin education efforts aimed at this (Conway 1). I would encourage the implementation of web usage education immediately the learners begin using computer technology. Learners and students in the first two grades need to be taught to on application and use of passwords and why this needs to be kept secret. I would also create copyrights with students using agreements in the classroom, as well as parents signing acceptable policies for use that regulate the use of technology in school. The usage of the web would incorporate acceptable policies of use that need to be the first line of defense in order to avert unlawful and insecure use of technology resources in the school (Conway 1). The technology policy must be reliable with in comparison with policies used for other resources that relate to the school, replicating the school’s goals and mission. Three ethical practices would be implemented in the classroom. For one, it would be essential to solicit parent involvement. Not only the learners and tutors will be targeted by internet safety and security education (Vance 1). It is important for school districts to hold, at schools, internet safety rights for both students

Case Study Portfolio Grangewood Paper Limited Essay

Case Study Portfolio Grangewood Paper Limited - Essay Example In each instance both criminal and civil liability can be founded. In addition, Grangewood is accountable to the Environment Agency. This paper will critically evaluate each of these duties and their respective consequences. In order to understand how poor waste management constitutes a breach of both statutory and common law duties it is necessary to define waste and the health risks associated with waste. The Department for Environment, Food and Rural Affairs divides waste into commercial, industrial and municipal waste.1 Municipal waste is typically waste disposed of by households, schools and small businesses. Commercial and industrial waste is collected from the business and manufacturing sectors respectively. Otherwise, there are no residual differences between municipal, industrial and commercial waste. To this end waste is â€Å"an inevitable by-product of our use of natural resources.†2 Waste is any waste materials generated and collected by local authorities or their agents.3 Council Directive 75/442/EEC also known as the Waste Framework Directive refers to waste as any material that is intended to be discarded or ought to be discarded.5 For all intents and purposes, was is construed within the parameters of the Council Directive.6 In general poor waste management practices can lead to loose debris and pollutants which poses a health risk on site and in the general vicinity.7 These pollutants attract insects and become breeding grounds for germs.8 Solid waste degrades and generally pollutes the area. Similarly liquid wastes becomes stagnant and likewise emits offensive odors and attracts insects such as mosquitoes and other germ and disease carrying insects9. Liquid waste is particularly problematic for Grangewood since its dye is left out so that it is exposed to rain and liquidizes into an unnatural state. Simply put, the Waste Management/The Duty of Care/A

Natural Resources And The Politics Of Middle East Essay Example for Free

Natural Resources And The Politics Of Middle East Essay Oil production in the Middle East has not only been a subject of geology or exploiting the lowest-cost field. Where exploration is performed and what fields are developed has been influenced as much by political as by economic factors. Until the late 1960s oil production and exports from the region significantly reflected the major western oil companies’ need to cope with the demands of the different governments in the Middle East, all of whom wanted to see more oil produced in their territories in order that they could get more revenue. The oil companies were as well concerned with the political stability of the regimes in the oil-exporting countries, the dependability of supply, the likelihood of the nationalisation of oil company facilities, demands over royalty levels and pressures to make use of and train local nationals. In view of the fact that then, what gets produced where and exported has depended on political and economic muscle within OPEC which efficiently determines country quotas. Iran was the first country in the Middle East in which oil was exploited with test production starting in 1903 and a key discovery in 1908. Under Reza Shah the country was politically stable, and the oil concession agreement which was signed with D’Arcy in 1901 on very positive terms was to run until 1994. The Anglo-Persian Oil Company, which afterwards turns into British Petroleum, was founded in 1909. Oil was not discovered in Iraq until 1927, however by that time Persian production was well established, plus a slow growth of demand, reflecting the fragile state of the international economy at the time, intended Iraqi oil exploitation was restricted in these early years. (Mohamed Rabie, 1992). Which oil fields were developed as well reflected rivalries in Middle Eastern interests between the major western powers. Britain, through the Anglo-Iranian Oil Company, had a virtual monopoly of exploration in Iran, consequently the United States had little choice however to look to Saudi Arabia on the other side of the Gulf, the one area that had not come under European imperial influences. In the 1930s the oil fields of the eastern province were opened up, plus the Arabian American Oil Company (ARAMCO) was formed by a consortium of leading United States oil companies. It was ARAMCO that developed the Ghawar and Safaniya fields in the Dhahran area which were to prove to be the largest and most dynamic in the entire world. ARAMCO carries on to account for most Saudi Arabian oil production and exports, although it was nationalised in the 1970s and the role of the American associate companies is now restricted to specialist support and marketing. There was huge resistance to attempts to take over the oil concessions awarded to western multinational oil companies. Conflicts between the oil companies and host-country governments over revenues date back to the 1920s and 1930s when oil started to be exploited in noteworthy quantities, however it was the Iranian government which was the first to demand control of production. After Dr Musaddiq consolidated his power as prime minister in 1952 he set up the National Iran Oil Company, a state-owned entity, to take over Iran’s oil from the Anglo-Iranian Oil Company. This aggravated a two-year boycott of purchases of Iranian oil by the major western oil companies. Purchases were merely started again when Musaddiq was overthrown and terms were agreed which were satisfactory from the viewpoint of the oil companies. (John Page, 1999). In the meantime the Anglo-Iranian Oil Company had changed its name to British Petroleum. It was to focus on developing the oil fields of the Emirates on the Arab side of the Gulf, where the rulers were much more co-operative. It was this new orientation and the co-operation with Shell, the Anglo-Dutch company, which were to consequence in the major developments in Kuwait, Qatar and Abu Dhabi, and ultimately Oman. The increasing importance of the Arab Emirates as oil suppliers was not so much a reflection of the quality of their oil or relative cost factors, to a certain extent what mattered was the political environment and the security of oil supplies. Iran, and subsequently Iraq, had their exploration and production curtailed on account of their political intransigence. The beneficiaries were the Arabian Peninsula states that had their oil fields developed and exploited to a greater extent than might otherwise have been the case on the basis of geological decisions alone. (Nora Bensahel, Daniel L. Byman, 2003).

Relationship between Accounting Information and Market Risk

Relationship between Accounting Information and Market Risk Financial theory describes risk assessment as one of the most important part in an investment decision making process.  However, for a risk to be known, it is important for investors to interpret information flowing on the market. This study aims to examine the association between accounting information and the market risk over time. It also evaluates how far the beta value and accounting variables can be useful for investors in Mauritius. Beta estimates are calculated using Capital asset pricing model and accounting risk variables are derived from theoretical foundations and prior empirical findings. The relationship between the financial ratios and the level of systematic risk is obtained by regressing the variation in the beta against changes in the accounting variable. The empirical evidence shows that beta is valid on the Stock Exchange of Mauritius (SEM). However, the power of beta is relatively low in capturing the systematic risk. This finding is in line with Campbell (1995) who obtained similar observation for emerging equity market and with Bundoo (2000) who noted same result. Finally the result shows that a strong association exist between accounting variables and market risk and it also observed that this relationship is consistent over time. Accounting variables like growth rate, debt ratio, asset size, liquidity, profit margin and accounting beta are able to capture market risk where beta generally provides a high explanatory power of systematic risk. The findings contradict the some of the association between the market risk measures and accounting risk measure obtained Beaver et al (1979).   1  Introduction The growth experienced in the Stock Exchange of Mauritius (SEM) during the years 1989 to 2007 was with no precedence. Stock prices of quoted companies on the SEM boomed, causing a high influx of capital which caused the market to rise to its peak with a net market capitalisation of MUR 173 billion in the end of the financial year 2007. Local investors who had investments in fixed deposits from local commercial banks shifted some of their investments to the SEM, with view of higher return. But Stock prices started to fall soon after the end of the month of February 2008 and within a year the SEMDEX reached a position which was a low as the values experienced in September 2006. While this fall was largely attributed to the morose international situation, as a result of the international financial crisis; there is also the question whether the SEM effectively capture risk which is inherent by companies quoted and how far investors in Mauritius used the publish financial information to evaluate and predict the level of risk in the operating environment. Financial markets serve a key purpose in an economy by allocating productive resources among various areas so as to enable an efficient resource allocation, across different firms, investors assess the security and market expected prospects and risks and form a portfolio of investments based on their assessment. Security analysis usually involves an evaluation of the financial position and performance obtained from the financial statements published periodically by companies. In an efficient financial market the share prices is expected change to the fair value of the firm as new information flows into the market. Financial theory describes risk assessment as one of the most important part in an investment decision making process. The return of a stock is often considered to be narrowly related with the risk which the investor is taking while holding that stock. This makes the generally accepted principle that the higher is the risk in investing in an asset, the higher should be the asset’s expected return. This implies that there is a positive correlation between risk and expected return in holding a stock. 1.1  Problem Statement The analysis of stocks return is intricately linked with the analysis of risk. Empirical studies carried by Graham et al (2001) has shown that the Capital Asset Pricing Model (CAPM), (an asset pricing tool which uses risk as a basis to calculate assets return) is used, by more than seventy five percent of the chief financial officers, as primary tools in the portfolio selection process. However some authors in the capital markets literature (Campbell (1995) and Chan et al (1991)) have argued that in the case of emerging stock exchanges the CAPM is inapplicable and beta is not significant. However, for a risk to be known, it is important for investors to interpret information flowing to the market. Fama (1963) described three generic forms of market efficiency based on the market reaction to inflow of information. Markets which react to all past information are said to be in its weak form, those markets which react to all past and publicly available information are referred to as semi-strong efficient markets and those which react to all past, public and private information are considered as strongly efficient markets. A study made by Bundoo (2008) showed that Stock Exchange of Mauritius (SEM) has the characteristics of a market in its weak form. This implies that the SEM effectively responds to past information. Yet there is absence of empirical research which evaluates whether market return and risk are effectively pictured through accounting ratios. 1.2  Aims and objectives This paper aims at analysing the share prices in the SEM and key accounting ratios to evaluate the financial position, performance of a sample of companies quoted across various economic sectors of the SEM with the view of answering the above question. It also seeks to test whether investors can trust beta in their decision-making process on the SEM. The paper also aims at: understanding the relationship between the financial ratios, market return and risk; estimating the level of systematic for different business segment where financial market information is not available; and to guide investment in measuring the systematic in private and non listed companies in Mauritius. 1.3  Organisation of this paper The paper is organised as follows: Chapter 2 provides a summary of literatures concerning risk measures, accounting tools and market-based models to measure the performance and risk; It also surveys the empirical researches on the SEM  and similar markets; Chapter 3 develops the models which are to be used in the analysis of the relationship between systematic risk and accounting ratios; It also outline the methodology and sample data which is used in the analysis; Chapter 4 presents the key findings from the study and Chapter 5 concludes the paper. 2  Literature review Risk and return of a firm are the two most important factors in the development of financial strategy for both individual investors and firms. Risk is inherently multi-dimensional and as such it has multiple characteristics which may be classified as financial and non financial. These characteristics make up the risk profile of a security, which is generally observed as changing with time and at different levels of a market. These changes in turn, impact on the return of the investors either by creating value or destroying the initial value before the investment.   Modern financial theories have proposed different models which are founded on sound theoretical analysis which can be used to estimate the different degree of riskiness of a particular security. These risk measures are then used in valuation models to estimate the return which an investor, with a defined risk attitude, can expect from an investment. As described in chapter 1, above, the applicability of such financial theories remain untested in many emerging markets. This chapter reviews the financial models which are commonly used by practitioners for estimating of the risk of stocks and stock market and their corresponding returns. It also summarises the main financial ratios which are used to analyse the financial risk, financial performance and the value of the firm. Finally a summary of the accounting tools and market-based models to measure return is also presented. 2.1  Risk It has always been difficult for practitioners to reach a consensus on the definition of risk. Moles (2004), nevertheless, provides a simple definition which is taken in this paper as basis for risk measurement. He defines risk as â€Å"the chance (or probability) of a deviation from an anticipated outcome†. With this definition it is implied that risk is made up of at least these 3 elements: 1.  probability: which means that risk can be quantified and expressed as a parameter, number of value; 2.  deviation from anticipated outcome: which is extent to which the actual result may deviate from that which is expected; 3.  anticipated outcome: this means that it is the consequence of the actual results deviating from the expected results that leads to risk. Newbold et al (2003) states that probability can be measured using past data by considering the proportion of times that an event occurred. For the case of an investor the anticipated event would be the financial return which he or she can expect by holding an asset. The measurement of the deviation from the anticipated return is normally done using the standard deviation of returns generated by an asset with regard to the expected return. 2.1.1  Systematic and unsystematic risks The deviation from the anticipated return is caused by is explained by 2 levels of risk: systematic risk and unsystematic risk.  The sum of these two main categories of risk is the total risk to which an investor is exposed to. Systematic risk is associated with overall movements in the general market or economy and therefore is often referred to as the market risk. The market risk is the component of the total risk that cannot be eliminated through portfolio diversification. Unsystematic risk which is a component of the portfolio risk that can be eliminated by increasing the portfolio size, the reason being that risks that are specific to an individual security such as business or financial risk can be eliminated by constructing a well-diversified portfolio. 2.2  The Capital asset pricing model Markowitz (1952) constructed a mean-variance model to observe the trade-off between risks and return. The model mathematically proved that return can be maximised, while minimising the overall risk, by holding a diversified portfolio. The idea was based on the concept that securities that are inversely correlated or having coefficients which are less than one. Such negative or low correlation coefficient results in a low covariance between securities in the portfolio. The low covariance implies a comparatively low level risk. However, Sing et al, (2001) observed that the model ignore the general risk-averse attitude of most investors. The Capital Asset Pricing Model (CAPM), developed by Sharpe (1964), is based on the framework set out by Markowitz (1952) which considers that investors invest their money in a portfolio of assets. The CAPM states that the return which a risk averse can expect from investing in a risky asset is a risk premium over the risk free rate. The formula 1 below states the formula which can be used to calculate the expected return. E(Ri)  = Rf +  i  (  E(Rm)   Rf  )  (2.1) where: E(Ri)  Ã‚  expected rate return of stock I; i  Ã‚  relative risk of share I; E(Rm)  Ã‚  expected rate return of the market portfolio; and Rf   risk-free interest rate. Sharpe (1964) and Lintner (1965) explained that the correct measure of risk of an asset is its beta factor, a standardised measure of the systematic risk and that the risk premium per unit of riskiness is the same across all assets. CAPM has been developed by considering some assumptions such as normal distribution of assets return, perfect divisibility of assets and return, the existence of a risk free rate, perfect market conditions, inter alia, which might not exist in the real world. Despite the fact that most of the above assumptions are neither valid nor fulfilled, the CAPM has become an important tool in finance. It is widely used by finance practitioners for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. The ÃŽ ² factor in the equation 2.1 measures the volatility of the specific asset with regard to the volatility in the market, that is, the market risk. Mathematically it is expressed as in equation 2, below: (2.2) where: systematic_riskasset = covariance of the asset and that of the market market_risk is the volatility in the market portfolio, it is measured by the standard deviation of prices of the market portfolio. 2.2.1  Empirical review of Capital asset pricing model The empirical studies undertaken by Jensen et al. (1972) found supportive evidence for CAPM. The authors found that the actual return, for a sample of companies quoted on the New York Stock Exchange (NYSE), were consistent with the predictions of the CAPM.  They noted that the relationship between the average return and beta was very close to a linear one and that portfolios with high betas had high average returns. The same result was confirmed by Black et al. (1972), who studied of all the stocks on the NYSE over the period 1931-1965. Black et al. (1972) formed portfolios of stocks and analysed the abnormal return with regard to the beta factor, and found a linear relationship between the average excess portfolio return and the beta. Black et al (1972) observed that the beta factor measured the responsiveness of the share return to changes in the returns of the market. Stocks with high positive betas had stock price which rose faster than the market. This implies that high beta stocks bear a higher degree of risk compared to stocks which have their beta factor as negative. Stock with negative beta behave negatively to changes in the market, as such, in a bearish market, it is more attractive to invest in these stocks as it helps to preserve the value of the investor. Fama et al. (1973) also observed a larger intercept than the risk-free rate when analyzing the return against risk. They confirmed that there is a linear relationship between the average return and the beta, even over longer period. They further investigated whether the squared value of the beta and the volatility of assets returns explained the residual variation in the average returns across asset and found that, in addition to portfolio risk, there are other variables that affect expected return. 2.2.2  Critics against Capital asset pricing model There has been also several criticism of the applicability of the CAPM in many markets. Empirical research undertaken by Basu (1977) proposed other factors which have to be considered instead of relying wholly on a single variable, beta. According to Basu (1977) the price earnings ratio has a great influence in market return. Banz (1981) challenged the model by indicating that firm size have a considerable impact on the average returns of a particular stock and thus firm size could better explain the volatility than the market beta. The author observed that the average return of small firms were higher than the average returns on stocks of large firms. Chan et al (1991) made a further observation, on the Japanese market, that stocks with high ratios of book value of common equity have significantly higher returns than stocks with low book to market equity. In this respect, book to market equity started to be regarded as being an important variable that could produce dispersion in average returns. Fama and French (1992) came up with the conclusion that a more realistic approach of the risk in the market is the multi-index models. Their study concluded the findings of Basu(1977), Stattman (1980), Banz (1981) and Chan et al (1991) who argued that size of the firm and the books to market equity ratio are far superior in explaining asset returns. In contrast with CAPM which can be considered as a single factor model, Ross (1976) proposed a multifactor arbitrage pricing theory (APT).  Groenewold et al (1997) examined the validity of the model for Australian data and compared the performance of the empirical version of the APT and the CAPM. They concluded that APT outperforms the CAPM in terms of within-sample explanatory power. The APT, however, is a generic model and does not specify any factor which has to be considered in analysing return with regard to risk. 2.2.3  The ongoing debate on the applicability of Capital asset pricing model Nevertheless, there is no consensus in favour of CAPM due to the disparities in the empirical findings and the debate continues. In general, the studies challenge the data used by Fama et al (1993). Kothari et al (1995) argue that the findings of Fama et al (1993) depend essentially on how the statistical findings are interpreted. Amihudm et al (1992) and Black (1993) supported the idea that the data are too noisy to invalidate the CAPM and showed that when a more efficient statistical model is used, the relationship between average return and beta is positive and significant. The author further suggested the findings in respect of size effect could be simply in a sample period effect and that it may not be noted in another period. Similarly, Berk (1995) questioned the findings of Chan and Chen (1991). The author emphasised that stock prices (and market value of the equity (MVE)) depend on the expected future cash flows which is used by investor to estimate the risk and the required rate of return. Therefore, if two companies have a higher discount rate and consequently its price and MVE will be lower. In this sense, MVE captures the information about the company’s risk, since any change in investors’ perceptions of risk is immediately reflected in the stock prices. Furthermore, when the expected return of a firm is defined as the expected cash flow divided by its MVE, the relationship between MVE and return is clearly negative for companies with equivalent cash flows. Berk concludes that for companies of similar cash flows, the higher the risk of the cash flow, the higher the discount rate investors apply to it, which causes price to decrease and expected return to increase. This concept has contradicted the findings of Chan and al (1991), which attribute higher returns to smaller companies. Owing to its intuitive appeal, the CAPM has become an important tool in finance for assessment of cost of capital, portfolio performance, portfolio diversification, valuing investments and choosing portfolio strategy among others. However, there is no consensus in the literature as to what a suitable measure of risk is, and consequently, as to what is a suitable measure for evaluating risk-adjusted performance (Galagedera, 2007). As such, the debate for robust asset pricing models continues. Other studies (Ball and Brown (1969) and Beaver, et al (1970)) have focussed on accounting variable to convey information about the market risk. 2.3  Accounting variables as a measure of systematic risk Research in accounting variable as a measure of risk has increased considerably since the last forty years with a number of published papers by Beaver et al (1970), Lev et al (1974) , Bernard (1989), Ohlson (1995), and Kothari (2001). Beta measures the relative risk whereby risk itself is determined by some combination of firm characteristics, market conditions, and the sensitivity of the firm stock to market conditions. As such, understanding the relationship between the accounting variable and the systematic risk can provide an alternative basis to a market based estimation and prediction which will in turn guide the accounting policy formulation and investment decision making (Brimble et al, 2007). The study by Beaver et al (1970)  was the most quoted research in accounting and financial research. The author had improved the perdition of systematic risk by considering the firm specific characteristic and they identified significant association between market risk and firm specific accounting information. The financial statements of firms were mostly used in providing considerable information that could be used to measure the inherent risk. In fact, the Financial Accounting Standards Board (1983) stated that the objective of financial reporting is to provide information that is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. A number of studies investigated how financial information becomes impounded in security prices and affects investment decisions. These accounting data are converted into the financial constructs, such as growth, operating leverage, profitability, liquidity, and efficiency. There is considerable evidence that since the late 1800’s ratio analysis has been widely used in the valuation of published financial data (Connor, 1973). Researchers and investors use mainly financial ratios for risk modelling purposes based on different criteria of comparison which are discussed as follows: Time series analysis: It also known as trend analysis and it is used to compare financial ratios over a period of time. Ratio analysis for one year may not present an accurate picture of the firm (Rao, 1989).  As such, to appraise a firm’s performance, the present ratios need to be compared with the past ratios. Cross-sectional analysis: This method compares ratios of one firm to the ratios of some other selected firms operating in the same industry at the same point in time (Pandey, 1999). Such comparison indicates the comparative financial position and performance of the particular firm. Industry analysis: According to Pandey this type of analysis helps to ascertain the firm’s financial standings and capacity vis-à  -vis other firms in the same industry. A study conducted by Beneda (2006) indicated that commercial lenders often consider the use of industry ratio analysis to be critical with regard to the potential success of the business. The main shortcoming of this analysis is that it is difficult to obtain the average ratio of an industry and if available the average ratio is composed of both strong and weak firms. Financial ratios were used for locating possible takeovers and mostly to predict major events such as corporate failures (Scott, 2004). Other studies reported on an association between accounting ratios and market risk measures, and proposed that certain accounting ratios can be used as proxies in predicting future security (Beaver et al. 1970; Elgers and Murray, 1982). 2.3.1  Usefulness of accounting variables The use accounting as means of estimating the systematic risk will allow the user of the financial statement to assess the investment alternative in terms risk, return and the value of the firms. Ryan (1997) has widely discussed the motive for relating accounting research to measures of market risk: The volatility of market betas over time indicates that the ex post measure of systematic risk is does not provide meaning full information in estimating the future risk. As such, understanding the relationship between accounting variables and systematic risk could indeed be useful in measuring and predicting the actual and upcoming market risk. Market based measures of risk, like the capital asset pricing model, fail to consider most of the firm specific characteristic such as the operational factors and environmental contingencies which influence risk. The accounting risk based information gets closer to the identification these economic fundamentals. Therefore accounting model provides an actual risk determinants rather than just determining the level of risk. Accounting risk model overcome the conventional problem were ex post measure of risk can not be applied due the fact that historical security returns is not available or insufficient like in the case non listed entities and for initial public offering Accounting variable are not affected by the noise found in traditional risk estimates which rely on past trading histories whereby significant variation in one period subsequently affect the overall risk level ; The development of trading strategies and the construction of portfolios with the desired level of risk. 2.3.2  Theoretical and empirical review of the relationship between individual accounting variable and systematic risk. Researchers on the association between systematic risk and accounting ratios were primarily initiated by Beaver (1970). The ratios used by the author were dividend payout, growth rate and leverage ratio, liquidity ratio, variability of earnings and co-variability of earnings. Other studies have further elaborated on these ratios and they also added other accounting based to measure the systematic risk. All these ratios aim at measuring the operating risk, financing risk and growth risk. The theories and empirical finding between these two variables are discussed as follows: Dividend Payout Corporate dividend policy has been the object of lively discussions in finance literature. The debate has revolved around the question of whether companies with generous distribution policies are less risky and whether there exists an optimal payout ratio. Theoretically, it is often asserted that firms with low payout ratios are more risky.  This is because that cost for external finance is relatively high for risky firm than firm with low risk. In this respect, risky firms rely on the utilization of their own reserves to carry out business activities. Dividend payout also affects the systematic risk by the information perceived by variation in the dividend policy. The original idea behind the information content of dividends, was developed by Lintner (1956) who claimed that managers only increased dividends when they believe that the levels of the firm’s earnings have permanently increased. He argued that decrease in dividend may be interpreted as cash flow or liquidity problem. Miller and Modigliani (1961) have argued, on the other hand, that dividend policy is irrelevant to the market value of shares. In a model which disregards taxes, they conclude that the payout policy which the corporation adopts, has no effect on the price of shares. Similarly Watts (1973) and Gonedes (1978) found no evidence that changes in dividend policy contain new information regarding firms future earnings. Gordon (1963) further pointed out that an increase in the proportion of retained profit now means higher cash dividends in the future and therefore conservative dividend policy has no effect on the risk factor. Still, Veikko (1967) explained that the higher the retention rate, the further in the future cash dividends are moved and the greater the uncertainty about their actual amount. Empirical evidence by Edward et al (1998) further showed that a significant negative relationship exists between the dividend pay out ratio and risk element. Growth rate Growth affects the systematic risk in two main ways as identified by Beaver et al (1973).  Firstly, where a firm earns excessive earning opportunities, that is, where the expected rate is higher than the cost of capital. Growth is normally attained by an expansion in the assets size either through the acquisition of new plants or by creating new product line or by takeovers.  The excessive earnings stream derived from these operations is argued to be more uncertain (i.e. volatile) than the normal earnings stream of the firm. In this respect the authors stated that a positive association exists between growth rates and risk. However, Harrigan (1984, 1986) have deepened this analysis and the author has observed different level of association over different industry life cycle characteristics. Harrigan argued that growth strategies, through takeovers and new product development, may be quite risky during an embryonic stage due to the high degree of product, process, and market uncertainty. In contrast, growth strategies may be less risky during times when demand conditions are growing in a stable manner. Finally, growth strategies are expected to become quite risky again as an industry is in transition to maturity because of the cut in the excessive earning streams. The second argument is related to the logic developed about the dividend payout ratio. Additional capital, utilized in the growth of the firm, would reduce the firm earnings in two main ways. If the expansion in asset is financed by the external debt, the firm earning would be eroded through finance cost. Whereas if the growth is financed through the retained earning, a sharp cut in earning attributable to the shareholder is expected. Both methods will ultimately lead to a reduction in dividend payout and thus increase the systematic risk. Asset Size Theoretically, larger firms are less risky than smaller firms. This is because large firms have better access to capital market, management skills and expertise and greater market liquidity. These factors provide opportunities to diversify and to seize new market opportunities to reduce operating risk which will impact on a lower beta than small firms. The studies of Dun et al (1970) reveal that the frequencies of failure are lower for large size firm than firm with low asset capitalization. Horrigan (1966) has shown that the most single important financial statement variable used to predict the bond rating of a firm was total assets. The author observed that if the asset returns are independent, the variance will decrease in direct proportion to the difference in asset size that is, as firm size doubles, the variance of the rate of return will be cut in half. Empirical work by Alexander (1949) observed that as firm size increase, the volatility in the earning streams decrease accordingly.   Moreover firm with wide operating activities are required to make more disclosure. For example the Mauritian companies act, 2001, stipulate that firms with Turnover above MUR 30 Million are required to file a complete set of financial statements with the Registrar of Companies. This information may be consulted by the members of the public upon payment of a nominal fee. Thus, more information is available to evaluate risk level. Collins et al (1987) have identified that small and recently incorporated firms have a high probability of financial distress. Accounting beta Research about the association between the market based beta and an accounting beta originated with Ball and Brown (1969). Accounting beta measures the degree of co-variability of firm earnings and the market earnings. Beaver et al (1970) argue that, if beta is being the used as the market determined concept of risk, then the most direct approach would be to compute the beta value on accounting earnings. Bowman (1969) demonstrated that the higher the accounting beta, the higher the systematic risk. Hence a positive relationship is expected between the two variables. Earning Variance The important relationship between earnings and the market beta is their covariability, accounting beta, is shown in the above. However, the empirical research has generally shown earnings variability to be superior to an accounting beta. Beaver et al (1970) found in a model that use accounting variables to forecast market risk that earnings variability was the most significant variable and that accounting beta did not make a statistically significant contribution. The relationship established by Ball and Brown (1969) is therefore theoretical. Empirical results may differ from theory for two main reasons as advanced by Bowman (1969). The assumptions (i.e there are only pure equity firms (no debt) in the market portfolio) of the theory may not be applicable to the universe being tested. Secondly, t

Comparing my Outputs to the Specification :: Computer Science

Comparing my Outputs to the Specification ========================================= The logo My solution to the task allows the users of the system to print off a ready designed promotion package and customise each part of it to include their name and the address of their particular branch of Daisy Chain. The users can alter the logo slightly and can also create a completely new logo from the user guide. They can edit details quickly, for example if a shop moves or a designer is employed, then these details can be added to the business card or letterheaded paper. The system can only use fonts and borders that exist on the software- they can't create original ones. I have managed to produce a suitable logo that meets all the points on the specification. It has been significantly changed since I drew the initial design and I now feel that it is now much better than the original version. Everyone I have asked about it has confirmed this. There are however some points that you can't really say whether the logo has met- you can't tell whether the logo will date or not. If it does then following the user guides could produce a new one. To produce most of the items in the promotional package I used Adobe, which isn't strictly a graphics program, but it has sufficient features to meet all the needs of this project. The Business Card ================= I have produced a business card that meets all the requirements set out in my design specification. It  · Looks professional  · Contains the logo  · Contains the name, address, postcode and website of the company  · Has space for the employees name  · Is striking and very bright, without being garish  · Contains a short statement about what the company does. The card is only one sided and this was something that was said could be improved. This isn't necessary, but could be done quite easily, if the company decided to invest more time and money into it. I have created a user guide that has been successfully tested, so other cards of different styles could be created. There isn't really a need for this however as I feel that the design I have created is successful and doesn't need altering. The card I created is much more interesting than any of the other cards I have looked at, and it meets all the requirements in my design specification. Realistically it may be too expensive to produce but this would depend on how wealthy the company was, and whether it wished to spend a lot of money publicising its image. The Letterhead The letterhead meets all the requirements set by the design Comparing my Outputs to the Specification :: Computer Science Comparing my Outputs to the Specification ========================================= The logo My solution to the task allows the users of the system to print off a ready designed promotion package and customise each part of it to include their name and the address of their particular branch of Daisy Chain. The users can alter the logo slightly and can also create a completely new logo from the user guide. They can edit details quickly, for example if a shop moves or a designer is employed, then these details can be added to the business card or letterheaded paper. The system can only use fonts and borders that exist on the software- they can't create original ones. I have managed to produce a suitable logo that meets all the points on the specification. It has been significantly changed since I drew the initial design and I now feel that it is now much better than the original version. Everyone I have asked about it has confirmed this. There are however some points that you can't really say whether the logo has met- you can't tell whether the logo will date or not. If it does then following the user guides could produce a new one. To produce most of the items in the promotional package I used Adobe, which isn't strictly a graphics program, but it has sufficient features to meet all the needs of this project. The Business Card ================= I have produced a business card that meets all the requirements set out in my design specification. It  · Looks professional  · Contains the logo  · Contains the name, address, postcode and website of the company  · Has space for the employees name  · Is striking and very bright, without being garish  · Contains a short statement about what the company does. The card is only one sided and this was something that was said could be improved. This isn't necessary, but could be done quite easily, if the company decided to invest more time and money into it. I have created a user guide that has been successfully tested, so other cards of different styles could be created. There isn't really a need for this however as I feel that the design I have created is successful and doesn't need altering. The card I created is much more interesting than any of the other cards I have looked at, and it meets all the requirements in my design specification. Realistically it may be too expensive to produce but this would depend on how wealthy the company was, and whether it wished to spend a lot of money publicising its image. The Letterhead The letterhead meets all the requirements set by the design

African-American Street Gangs in Los Angeles :: Gangs Crime Essays

African-American Street Gangs in Los Angeles In Los Angeles and other urban areas in the United States, the formation of street gangs increased at a steady pace through 1996. The Bloods and the Crips, the most well-known gangs of Los Angeles, are predominately African American[1] and they have steadily increased in number since their beginnings in 1969. In addition, there are over 600 active Hispanic gangs in Los Angeles County with a growing Asian gang population numbering approximately 20,000 members. Surprisingly, little has been written about the historical significance of black gangs in Los Angeles (LA). Literature and firsthand interviews with Los Angeles residents seem to point to three significant periods relevant to the development of the contemporary black gangs. The first period, which followed WWII and significant black migrations from the South, is when the first major black clubs formed. After the Watts rebellion of 1965, the second period gave way to the civil rights period of Los Angeles where blacks, including those who where former club members who became politically active for the remainder of the 1960s. By the early 1970s black street gangs began to reemerge. By 1972, the Crips were firmly established and the Bloods were beginning to organize. This period saw the rise of LA’s newest gangs, which continued to grow during the 1970s, and later formed in several other cities throughout the United States by the 1990s. While black gangs do not make up the larges t or most active gang population in Los Angeles today, their influence on street gang culture nationally has been profound. In order to better understand the rise of these groups, I went into the original neighborhoods to document the history which led to these groups. There are 88 incorporated cities and dozens of other unincorporated places in Los Angeles County (LAC). In the process of conducting this research, I visited all of these places in an attempt to not just identify gangs active in Los Angeles, but to determine their territories. Through several weeks of field work and research conducted in 1996, I identified 274 black gangs in 17 cities and four unincorporated areas in LAC. Post WWII to 1965 The first major period of black gangs in Los Angeles began in the late 1940s and ended in 1965. There were black gangs in Los Angeles prior to this period, but they were small in numbers; little is known about the activity of these groups.

Buyer and Seller Relationship in the retail industry Essay

1. Introduction For many years buyers and sellers in the clothing retail sector have been battling to answer the question as to why it is difficult to build a steady relationship with one another. This can be due to the knowledge gap that there is in a lack of understanding on the issue. We aim to thoroughly associate the concepts of Collaboration, Information Sharing, Joint Relationship Effort, Dedicated Investments, Commitment and Trust, Satisfaction and Performance with the different buyer – seller relationships that exist in the clothing retail sector. Thus the problem being investigated is the unsteady relationship that exists in the clothing retail sector between buyers and sellers. The study will be using a survey consisting of 37 questions that will be issued to buyers in the industry. A sample size of 500 clothing companies will be used in Cape Town, South Africa which was selected to answer the surveys. The research method is quantitative in nature. Thus the study aims to carefully examine how buyers and sellers interact within the supply chain relationship. Some papers have touched on supply chain relationship issues, but have not done the association with these particular concepts our study aims to use. The main objective of our research is to provide buyers and sellers with the necessary information to assist them as to why there are certain imperfections in the relationship. 2. Literature Review Some research has be done on the concepts collaboration, information sharing, joint relationship effort, dedicated investments, commitment and trust, satisfaction and performance, which gave an insight to how these variables develop, change and how they are maintained in the context of buyer-seller relationship. Therefore for the purpose of this study twelve (12) articles written in the context of buyer and seller relationship will be used to define and explain the above mentioned concepts and how it is used throughout our research study. Collaboration Collaboration can be defined as latest development in supply chain management which involves the process of working together with your suppliers, business partners or clientele in achieving a common goal that benefits all parties (McLaren, Head & Yuan, 2002). Ellinger, Daugherty & Keller (2000) observed what exactly links marketing and logistics within a company’s integration, as well as measures of performance that are both objective and subjective in nature. They found and identified collaboration as a variable that impacts a relationship in a progressive way in that it increases sharing information and ideas and leads to partners functioning together. Information sharing McLaren, Head & Yuan (2000) has identified information sharing as the exchange of important company information with your supply chain partner for purposes that would assist each partner in the future. McLaren et al. (2002) discusses how a partnership between the buyer and seller can be beneficial for both parties where information sharing is of key importance. Their findings were that, creating partnerships between buyers and sellers were beneficial for both parties and that the success of information sharing depends on the type and size of the company as well as which mechanism they used for information sharing. Joint relationship effort Joint relationship effort refers to the combined determination and drive that is put into collaboration between buyers and sellers. Monczka, Petersen, Handfield & Ragatz (1998) argued for example that when task organisation is performed between buyers and sellers, the buyer can then form a perceptive trust in their partner’s abilities which will later form a solid trust in their relationship. Dedicated investments Knemeyer, Corsi & Murphy (2003) defined dedicated investments as particular  resources and goods that are transferred to another party that is highly important towards producing services and products. They tried to prove that there are different levels of partnership development in logistics management by research done by previous researchers who have also done research on the existing topic and if there is in fact a difference between these levels. Their findings were that the more trust there is within the relationship, the more partners invest in the relationship which directly increases dedicated investment. Commitment and trust Commitment refers to buyers and sellers engaging themselves and maintaining a working relationship in a way that will benefit both their own organisation and the company they have an association with. Trust refers to the reliance, surety, confidence or ability in a person or thing. In this case, it is having the reliance, surety, confidence or ability in the working relationship of one or more organisations. Mohr and Spekman (1994) was the first to find that trust and commitment are of utmost importance in a buyer – seller relationship, and that these factors lead to the success of the relationship. Satisfaction and Performance Satisfaction can be defined as referred to Mohr & Spekman (1994) as the completion of a task by which the involved party is pleased with the quality and degree of work carried out and it meets the standard set by the partners. Performance on the other hand can be defined as the completion of a task by a degree higher than specifications set out by the individual involved. Mohr & Spekman (1994) argued that the buyer-seller relationship is a partnership which generates satisfaction when performance expectations have been achieved. A study had been conducted and showed that commitment and co-ordination are positively associated with satisfaction and an increase in profits would bring about satisfaction among those parties involved in the supply chain 3. Research Hypotheses The hypotheses are constructed with a purpose of assisting in answering the research question, which is seeks to find The Nature of Buyer-Seller Relationships in the Retail Sector. Based on the review of the relevant literature, our hypotheses are based on some of the important variables that exist in the supply chain relationships. The relationship variables focused on are: commitment and trust, performance, satisfaction, joint relationship effort and collaboration, and will be shown using the relevant hypotheses. These relationships form the basis of the research propositions that will be tested in the duration of this study. H1: Commitment and trust has a positive impact on collaboration. Since committed partners make an effort to achieve the goals of their business relationship, high levels of commitment are most likely to produce a good collaborated relationship. H2: Performance has a positive impact on collaboration. The strength of collaboration in a supply chain relationship depends on the power of the chain performance: short-term (performance within one year), medium-term (performance over one to three years) and long-term (performance over two to five years). H3: Satisfaction has a positive impact on collaboration. The extent to which the buyers and sellers in the supply chain relationship are satisfied, determines the strength of their relationship. Thus, when both parties are satisfied with the collaboration, their relationship will produce good results. H4: Joint relationship effort has a positive impact on collaboration. By engaging in a joint relationship effort that involves sharing resources and capabilities, buyers and sellers can achieve a profitable collaboration that they cannot create alone. 4. Research Methodology An exploratory-descriptive study was conducted to write this research report. The context selected for this study focused on the clothing retail sector. The unit of analysis in this study was the nature of buyer and seller relationship in the clothing retail sector. We focused on the buyer’s perceptions of the relationship as we were unable to collect data from both buyer and seller. Even though having data collected from both parties would have been more beneficial, time and finances were a constraint and had to be taken into consideration; therefore it resulted in focusing on one side of the relationship. Internet searches of various clothing companies were compiled. Each company was contacted by telephone so that we would be able to speak directly to a clothing buyer. They were notified beforehand as to the purpose of this study and that their participation would be fundamental in completing this research report. The clothing buyer had the choice as to receiving the questionnaire via email or an interview. Most questionnaires were sent via email as buyers had other commitments as well and preferred this form of communication. A sum of 500 questionnaires was sent to various companies within the clothing retail sector, of which, only 106 (response rate of 21%) responses were received that was used for analysis. This response rate was lower than we had anticipated but we had to work with the data provided and continue the process as it was a busy period for most buyers at that time. The surveys were coded and then uploaded on a spreadsheet as it was simpler to analyse the data and descriptive statistics had been implemented to construct the necessary graphs that would conclude the findings. The following chart was designed to illustrate the response rate of the survey. Figure 1: Percentage of Responses Coded 5. Data analysis and Findings In this section of the report there will be a detailed discussion on the data collected in the survey as well as a representation of the findings. There will be a detailed analysis of the hypothesis tested and also an explanation of how the findings were derived. To complete the report 500 surveys were distributed to companies across South Africa. Only 106 of the companies responded but there were a number of biases. With regards to the nature of the relationship with supplier 5 respondents didn’t answer, under the sections joint relationship effort, dedicated investments and commitment and  trust there was 1 respondent who didn’t answer the questions. Under the satisfaction section 7 answers were left blank and 2 of the questions were answered with incorrectly. Under the performance section 8 answers were left blank. The following table was designed to displaying the mean, median, mode and range. Below is the table 1 showing all the data. MEAN MEDIAN MODE RANGE 1. NO. YEARS AT COMPANY 8.738095 7 5 38 2. NO. YEARS IN CURRENT POSITION 6.629482 4 1 37 3. NO. YEARS WITH SUPPLIER 12.016 10 10 60 Table 1: Mean, median, mode, range, standard deviation The first row in the table 1 above illustrates the number of years the respondent has been with the company. This information shows that the average amount of years a respondent has been with the company is 8.738095 years, the middle frequent response was 7 years, the most frequent response was 5 years and the difference between the respondent who has been with the company the least amount of years and most amount of years is 38 years. Since the respondents have a number of years with the company it means that they are familiar with the company’s way of business, how they deal with suppliers, who all the suppliers are and also the type of relationship they have with the suppliers. The second row illustrates the number of years the respondents have been in the company. It shows that the average amount of years a respondent has been with the company is 6.629482 years, the middle frequent response was 4 years, the most frequent response was 1 year and the difference between the respondent who has been with the company the least amount of years and most amount of years is 37 years. The high number of years that some of the respondents have been in their current positions gives an indication the information given is reliable and that it will aid in answering the question at hand. The third row depicts the number of years the company has spent with the supplier. It shows that the average amount of years a respondent has been with the company is 12.016 years, the middle frequent response was 10 years, the most frequent response was 10 years and the difference between the respondent who has been with the company the least amount of years and most amount of years is 60 years. The high number of years with same supplier shows that the information collected depicts a mature relationship between the buyer and the seller. Seeing that the relationship is matured the main focus of both the buyer and the seller would then be to continue to build on the relationship so that they can be in business for even more years to come. The following chart illustrates the position of the respondents which in turn goes with the number of years the respondents have been in their current position. It shows that 5% are CEO’s, 1% COO’s, 7% directors, 10% sales manager’s or supervisors, 12% other employee’s and 48% buyer’s. The fact that such a high number of the respondents are buyers displays that the questions answered are quite accurate since they have a good understanding of the relationship with the supplier. The buyer’s best understand the relationship with the supplier and since the study at hand is looking at the collaboration of buyers and sellers, the information gathered will have a great impact in answering the given hypothesis. Figure 2: Current position Commitment and Trust Figure 3: Degree of respondents to questions about commitment and trust Description The above data represents responses pertaining to questions about commitment and trust amongst buyers and their suppliers in supply chain relationships in the clothing sector. The graph illustrates whether the buyers agree or disagree to the extent of commitment they have with their suppliers. The x-axis of the graph represents the scales between strongly disagree and strongly agree. Meanwhile, the y-axis of the graph represents the response scores of the buyers. Analysis When assessing the data, it is evident that seven hundred and forty one (741) responses were obtained in the commitment and trust section of the questionnaire. Taking a closer look at the responses, it is evident that 4% of the respondents strongly disagree that commitment and trust have a positive impact on collaboration. Meanwhile, 6% of the respondents have a neutral opinion, and 90% of the respondents strongly agree to the questions. The low 4% might have been supported by the fact that their companies are in business on a short-term basis. Thus, they do not foresee the business relationship continuing for a long time, very little investment has been injected to their relationship, thus commitment is very low. The slowly rising 6% response rate could have been due to the fact that buyers are not certain where their loyalties lie with that certain supplier. Another factor could be because they are still in early business with the supplier, so the supplier’s commitment and trust to the buyer’s company have not reached maximum levels yet. The very high response rate of 90% can be influenced by various factors. The supplier is genuinely concerned that the buyer’s company succeeds; buyers expect the business relationship to continue for a long time; the buyers are committed to their supplier; effort and investment have been made to build their relationship; they expect the relationships to strengthen over time, etc. These factors prove that these buyers support the hypotheses stated, that commitment and trust have a positive impact on collaboration. Therefore, this data proves Mohr and Spekman (1994) correct when they found that trust and commitment are of utmost importance in a buyer – seller relationship, and that these factors lead to the success of the relationship. Performance Figure 4: Degree of respondents to questions about performance Description The graph depicts the responses of clothing buyers to four questions relating to performance being a factor of a successful collaboration among buyer and seller relationships. The horizontal axis(x – axis) illustrates the Likert scale from 1 – 7 which ranges from strongly disagree to strongly agree. The vertical axis(y – axis) depicts the score, which is the cumulative responses received from the clothing buyers. The above graphical representation shows the movements of responses to a set of questions aimed at performance and just by glancing at the graph; one can already notice that most respondents (about 74%) strongly agree that performance has a positive impact on collaboration. Analysis When assessing the data it can be seen that four hundred sixteen (416) responses were received that answered this section of the questionnaire. However on a scale of 1 – 3, 12% respondents strongly disagreed with the notion of performance enhances collaboration, 14%(scale 4) were neutral and 74 %( scale 5 – 7) strongly agreed on most of the questions that had been asked. The reasons that may have led to a 12% response rate could be that the buyers never had one focal supplier or were not in a long business relationship to determine if the relationship affected the business’s overall performance. Furthermore, the 74% response rate may have led to buyers agreeing with H2: performance has a positive impact on collaboration, as their relationship with the seller may have contributed to the increased performance of the overall relationship and company. Other factors contributing to the 74% response rate might have been that the relationship, reduced cycle times, improved order processing accuracy as well as punctual delivery of goods, this in turn increased the accuracy of forecasts that may have been conducted. According to Ellinger, Daugherty &Keller (2000) performance may be conceptualized as the extent to which the firm’s goals are achieved, and as illustrated in the above graph the percentage of respondents that strongly agreed already indicates that performance aids in positive collaboration which in turn would allow firms goals to be met effectively. Joint Relationship Effort Figure 5: Degree of Respondents to questions about joint relationship effort Description The above bar graph describes the number of respondents (clothing buyers) that disagree or agree that joint relationship plays an important factor in the buyer and seller relationship in the clothing sector. Respondents had to choose between a scale of 1 till 7 by which 1 stipulates strongly disagree and 7 refers to strongly agree. Thereafter the data was grouped together according to the number of individuals that did choose between the scales of  1 till 7. Respondents were asked three questions relating to joint relationship effort. These were as follows , whether the firm and supplier has: 1) joint teams 2) conduct joint planning to anticipate and resolve operational problems and whether they make 3) joint decisions about improving overall cost efficiency. When looking at the results, one can see that 49 respondents had a neutral view regarding joint relationship and 74 of the respondents strongly agrees that joint relationship plays an important role in the buyer and seller rel ationship. Analysis When assessing the data it can be seen that 307 responses were received that answered this section of the questionnaire. However on a scale of 1-3, 25% respondents strongly disagreed with the notion of joint relationship that enhances collaboration, 16% (scale 4) were neutral and 62% (scale 5-7) strongly agrees on most of the questions that had been asked. The reason that has led to a 25% response rate can be due to buyers and suppliers does not have joint teams and thus do not plan together as a team. Therefore they do not know the benefits of having joint teams. Therefore this data show case a broad view regarding joint relationship effort as being an important variable as the graph has an upward trend. Furthermore, the response rate of 62% may have led to buyers agreeing with H4: joint relationship effort has a positive impact on collaboration, as their effort and commitment in creating joint teams and planning together might have improved collaboration between buyer and supplier. Satisfaction Figure 6: Responses to Satisfaction in the Clothing Industry Description The above graph describes the number of respondents (clothing buyers) that disagree or agree that satisfaction plays an important factor in the buyer and supplier relationship in the clothing sector. Respondents had to choose  between a scale of 1 till 7 by which 1 stipulates strongly disagree and 7 refers to strongly agree. Thereafter the data was grouped together according to the number of individuals that did choose between the scales of 1 till 7. Respondents were asked eight (8) questions relating to satisfaction. The questions were as followed: whether the buyer was satisfied with the relationship in terms of 1) coordination of activities 2) participation in decision making, 3) level of commitment 4) level of information sharing 5) management of activities 6) profitability 7) market share and 8) sales growth. When looking at the results, one can see that 153 respondents had a neutral view regarding satisfaction and 448 of the respondents strongly agrees that satisfaction plays an important role in the buyer and supplier relationship. Analysis When assessing the data it can be seen that 1508 responses were received that answered this section of the questionnaire. However on a scale of 1-3, 6% respondents strongly disagreed with the notion of satisfaction enhances collaboration, 10% (scale 4) were neutral and 84% (scale 5-7) strongly agrees on most of the questions that had been asked. The reason that led to a 6% response rate can be due to buyers and suppliers having a young business relationship and thus not reaching satisfaction levels as yet. When looking at the data, the response rate of 84% may have led buyers agreeing with H3: satisfaction has a positive impact on collaboration. This can be due to respondents identifying market share and sales growth as being two of the most important factors being satisfied by the supplier. This relates to a study done by Mohr & Spekman (1994) as they identified the completion of a task by which the involved party is pleased with the quality and degree of work carried out and it meets the standard set by the partners, market share and sales growth being the standard set by the buyer. 6. Conclusion As mentioned above the problem being researched was the knowledge gap between buyers and sellers perspective of the nature of the supply chain relationship. The research study conducted on the nature of buyer-seller  relationship in the clothing industry was a lengthy procedure that involved plentiful of consultations and analysis of the data obtained. However, we have concluded that our data findings have committed to the hypotheses mentioned in the research report. As previously mentioned time and finances were major constraints for the duration of the study hence the weak response rate of 21%. Some of the other constraints were the buyers having their own responsibilities because of the short time frame given in which to complete the survey. In addition, 50% of the buyers were reluctant to answer some of the questions as they contained confidential company information. Furthermore, the report only focused on the buyers’ perspective of the relationship. The sellers’ perspective was not taken into account therefore a future study using this report in combination with conducting a survey of the sellers’ point of view can lead to a better understanding of the buyer – seller relationship. Bibliography Cannon, J.P. Doney, P.M. 1997. An Examination of the Nature of Trust in Buyer-SellerRelationships.Journal of Marketing, April, pp.35-51. Dahlstorm, R. McNeilly, K.M. Speh, T.W. 1996. Buyer – Seller Relationships in theProcurement of Logistical Services.Journal of the Academy of MarketingScience, 24(2), pp.110–124. Disney, S., Holweg, M., Holmstrom, J. &Smaros, J. (year unkown). Supply chaincollaboration: Making sense of the strategy continuum. Ellinger, A., Daugherty, P., Keller, S., 2000. The Relationship BetweenMarketing/LogisticsInterdepartmental Integration And Performance In U.S.Manufacturing Firms: AnEmpirical Study. Journal Of Business Logistics, 21(1),pp.1-22. Handfield, R., Monczka, R., Petersen, K., &Ragatz, G., 1998. Success Factors inStrategic Supplier Alliances: The Buying Company Perspective. DecisionSciences, 29(3) pp.553-577. James, A.E. et al., 2004. An Assessment Of Supplier – Customer Relationships. JournalOf Business Logistic, 25(1), pp.25–62. Kauser, S. & Shaw, V. 2004.The influence of behavioural and organisationalcharacteristics on the success of international strategic alliances.InternationalMarketing Review.21(1): 17-52. Knemeyer, A. M., Corsi, T. M. & Murphy, P. R. 2003. Logistics outsourcing relationships:Customer perspectives. Journal of Business  Logistics.24 (1), pp.77-109. McLaren, T., Head, M. & Yuan, Y. 2002. Supply chain collaboration alternatives:Understanding the expected costs and benefits. Internet Research: Electro nicNetworking Applications and Policy. 12 (4), pp.348-364. Moberg, C. R. &Speh, T. W. 2003.Evaluating the relationship between questionablebusiness practices and the strength of supply chain relationships.Journal ofBusiness Logistics.24 (10), pp.1-19. Mohr, J. &Spekman, R. 1994. Characteristics of partnership success: Partnershipattributes, communication behaviour and conflict resolution techniques. StrategicManagementJournal.15 (1): 135-152. Simatupang, T.., Sridharan, R. 2002. The Supply Chain: A Scheme for InformationSharing and Incentive Alignment. The International Journal of LogisticsManagement.1, pp.1-32.