The International Monetary Fund Essay - 2551 Words

1. Introduction 1.1 What is the International Monetary Fund (IMF)? â€Å"The International Monetary Fund is an organisation that provides short-term credit to 186 member nations. The International Monetary Fund works to maintain orderly payments arrangements between countries and to promote growth of the world economy without inflation. It supports free trade in goods and services. To stabilize its members’ economies, the IMF provides policy advice and short-term loans when a member nation encounters financial difficulty.† World Book, Inc 1.2 The history of the International Monetary Fund (IMF). The International Monetary Fund was designed during World War II by men whose worldview had been shaped by the Great War and the Great†¦show more content†¦The cumulative effect of history on the institution has been rather more profound and requires a longer and larger perspective. The fixed but adjustable exchange-rate system ended in August 1971 when President Nixon closed the gold window, ending the U.S. commitment to keep the dollar price of gold at $35 per ounce. In 1973 the month of March, major countries agreed that the fixed exchange-rate system would not be restored. Thereafter, currency values would be determined in various ways ranging from freely floating exchange rates at one end to firmly fixed exchange rates at the other. By then, many countries had removed exchange controls on both trade and capital movements. The international economy faced a new challenge; they had to reconcile growth, low inflation and high employment with open trading arrangements and international capital mobility. The oil shocks of the 1970s and the mistaken economic policies in many countries that produced large deficits and inflation increased the difficulty of achieving these goals and objectives. Nothing in the founding mission or the accumulated experience of the IMF prepared it to deal with these evolving challenges. 2. How the IMF help with the financial crises and their problems. 2.1 The Bretton Woods agreement The Bretton Woods framework was necessary to avoid aShow MoreRelatedInternational Monetary Fund1220 Words   |  5 PagesThe IMFs primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with one other. This system is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty. The Fund’s mandate has recently been clarified and updated to cover the full range of macroeconomic and financial sector issues that bear on global stability. TheRead MoreThe International Monetary Fund ( Imf )985 Words   |  4 PagesThe International Monetary Fund (IMF) was one of the many international organizations that emerged after the end of World War II. The primary function of the IMF is to promote the international financial stability and spur monetary cooperation. Many countries see the IMF as a â€Å"lender of last resort† (Thacker, 1999:38), meaning countries borrow money from the Fund for â€Å"short-term balance of payment support† (Steinwand and Stone, 2007:11) in order to avert the collapse of their domestic economies.Read MoreInternational Monetary Fund ( Imf )2266 Words   |  10 PagesAims/Purpose International Monetary Fund (IMF) aims to maintain and defeat and sometimes to restrain the financial crises. (BBC, 2012) Basically it was created to avoid another Great Depression with an economical cooperation. It was founded more than 60 years ago at the end of the II World War. (International Monetary Fund, 2015) Mostly the institution has directed to focus the developing world. Nowadays there are few purposes of the IMF such as monetary stability, exchange rate stability, facilitateRead More International Monetary Fund Essay2125 Words   |  9 PagesInternational Monetary Fund Intro: In July 1944, the United Nations Monetary and Financial Conference met in Bretton Woods, New Hampshire, to find a way to rebuild and stabilize the world economy that had been severely devastated by World War II. One result of the conference was the founding of the International Monetary Fund (IMF) through the signing of its Articles of Agreement by 29 countries. The stated purposes of the IMF were to create international monetary cooperation, toRead MoreInternational Monetary Fund ( Imf )3071 Words   |  13 PagesGLOBAL BUSINESS SUSTAINABILITY INTRODUCTION International Monetary Fund (IMF) is an organization consisting of 188 nations functioning towards global monetary cooperation, ensuring financial stability, minimizing poverty around the world (IMF, 2014). In this report its functions of IMF and its effectiveness have been explained to describe minimizing financial imbalances by the countries. UK has been the main focus in this study. The impact of IMF policies on social and environment in UK and howRead MoreThe International Monetary Fund ( Imf ) Essay2250 Words   |  9 PagesIntroduction: The International Monetary Fund (IMF) is an international organization created in 1945 to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and to reduce poverty around the world. The IMF is governed and accountable to the 189 countries that make up the global membership of the organization. These goals make up the IMFs formal rules, the informal rules allow more access for powerfulRead MoreThe International Monetary Fund ( Imf )1501 Words   |  7 PagesTHE INTERNATIONAL MONETARY FUND (IMF) The IMF was set up during the Second World War in the year 1944. It started operation in 1947 and it has been working with the UNO since. Its headquarters is in Washington D.C in America. IMF provides short term loans to countries having problems of balance of payments. It also provides technical advice to its members and ensures free flow of trade by removing all trade restrictions. It establishes and maintains stable exchange rate between member countriesRead MoreThe World Bank And The International Monetary Fund1505 Words   |  7 PagesEconomics in an International Context Essay Name: Yousef Al Zarafy Module Code: FC006 - Economics in an International Context Module Teacher: Georgina Chapman Assessment Type: Individual Essay Assessment Title: â€Å"Africa needs to be rich - rather than green† claims Matt Ridley. Would this statement also apply to developing economies? Using clear Example, discuss the role and influence of The World Bank and the International Monetary Fund in the developing countries of Europe. Submission DateRead MoreInternational Monetary Fund And The World Bank1679 Words   |  7 PagesIMF - HIPC International Monetary Fund and The World Bank, though has a good purpose of their existence, they have come under lots of criticisms as to how they use the leverage of being in a position of helping poor countries to either recover from economic collapse or give them debt relief and economic boost from loans they give out to them to impose policies and condition that those poor countries has to implement. These loan conditions and policies structured by these international financial powerRead More The International Monetary Fund (IMF) Essay1888 Words   |  8 PagesThe International Monetary Fund (IMF) International Monetary Fund (IMF), international economic organization whose purpose is to promote international monetary cooperation to facilitate the expansion of international trade. The IMF operates as a United Nations specialized agency and is a permanent forum for consideration of issues of international payments, in which member nations are encouraged to maintain an orderly pattern of exchange rates and to avoid restrictive exchange practices.

When Diving Into The Details Of Gravitational Theories

Before diving into the details of gravitational theories with anisotropic scaling, we discuss some important ingredients of the theory and why they are essential. 2.1.1 Higher order terms The non-renormalizability of General Relativity means that it is an effective theory and the Einstein-Hilbert action contains only the terms relevant at low energies. Then one naturally is tempted to add higher order curvature terms to the action thereby making the theory applicable at high energies. This possibility was first explored in 1962 by R. Utiyama and Bryce S. DeWitt [33]. They noticed that the action of quan- tum gravity should contain functionals of higher derivatives of metric tensor besides the Einstein-Hilbert action. But is such a theory renormalizable? This question was answered in affirmitve in 1977 by Kellogg Stelle [34]. He showed that the theory is renomalizable with quadraditic curvature invariants. However due to the presence of higher time derivatives, such a theory has the negative norm state called ghosts which allow the probability to be negative and hence breaks the unitarity. In fact, as back as in 1850, Mikhail Ostrogradsky showed that presence of time d erivatives higher than two will lead to the problem of ghosts [35]. Combining all these ideas, Horava added only the terms containing higher spacial derivatives while keeping the time derivatives to second order. Also the power-counting renormalizability restricts the number of spatial derivatives to six. ThisShow MoreRelatedPhysics in Daily Life13985 Words   |  56 Pagesrequired will be simple and direct. When reference is made to particular situations or apparata which might be unfamiliar to candidates, sufficient details will be given to explain the context. Mathematical content The use of non-programmable electronic calculators with arithmetical (four rules, squares, square root, log) and simple trigonometrical functions (sin, cos, tan, and their inverses in degrees) is recommended. Standard notation and SI units will be used. When one quantity is divided by anotherRead MoreOrganisational Theory230255 Words   |  922 Pages. Organization Theory Challenges and Perspectives John McAuley, Joanne Duberley and Phil Johnson . This book is, to my knowledge, the most comprehensive and reliable guide to organisational theory currently available. What is needed is a text that will give a good idea of the breadth and complexity of this important subject, and this is precisely what McAuley, Duberley and Johnson have provided. They have done some sterling service in bringing together the very diverse strands of work

School Health Plan Free Essays

string(64) " doctors at these places, but again, preventative care is rare\." School health programs are becoming more and more popular as health concerns grow. Students need to be aware at younger ages of the concerns that face our society, and the ways that they can combat these concerns through good health knowledge. Several school districts have implemented comprehensive health curriculums and programs, and many states have standards regarding health education. We will write a custom essay sample on School Health Plan or any similar topic only for you Order Now The following articles detail different health programs and concerns. In Michigan, there exists state content standards in the area of health education. The Michigan curriculum calls for health education to occur at least 50 hours per year from pre-kindergarten through twelfth grade, with a curriculum that is developmentally appropriate at every level and builds on skills and knowledge each year. Further, it calls for school staff to collaborate on healthy behaviors with the school health teacher, so that health can be a priority within the school. The article suggests that classroom teachers, gym teachers, cafeteria workers, classroom teachers, and other professionals work together to help students with healthy behaviors and knowledge (Michigan Board). There is a general concern that although students’ unhealthy behaviors are fewer than they previously were, there are still too many students who are engaging in these unhealthy behaviors. The target behaviors the program is looking at are healthy eating, physical activity, social/communication, sexual behavior, alcohol and drugs. The program aims to teach students specific knowledge about how certain behaviors can be harmful, and how they can make healthier choices. It also aims to teach them general health principles and how to apply these in social, school, and family relationships (Michigan Board). This curriculum is to be taught by qualified health instructors. A qualified teacher will have a certification in health education or family and consumer science, in addition to a teaching license, and/or will have undergone another type of training program. The teacher will not act alone, but will collaborate with other teachers in the building in order to incorporate healthy choices into all aspects of the school day. The article is careful to say that this collaboration must not take the place of health classes, but must be in addition to them (Michigan Board). The article’s research shows that students who are involved in effective health classes show fewer risk behaviors and more pro-social behaviors. They are also more on-task in the school environment and less likely to be distracted by health problems (Michigan Board). Two professors of health education wrote an example lesson plan for integrating health into the math curriculum. Students can study the number of fruit and vegetable servings needed in a day, and can practice adding and subtracting the number of servings needed depending on how many have been eaten so far. They can also look at what constitutes a serving, and some basic nutritional information about different fruits and vegetables. This lesson neatly involves both math and nutrition, and ends with students being able to taste fruits and vegetables that they have brought in from home. Lessons like this can be created to integrate health into any subject area (James and Adams). Different student groups have different needs, and educators have different concerns for them. For example, students with special needs may have certain dental concerns that typical students don’t have. Students with disabilities may experience drooling, teeth grinding, problems swallowing, or have to take a lot of sugary medication. There are several other oral issues that may affect them as well, depending on the disability. What’s more, these students may not have the comprehension, or physical skills to engage in typical oral hygiene, and their caretakers may not see it as a priority. For that reason, health teachers need to emphasize the role that oral hygiene plays for these students, and encourage either them or their caregivers to help them maintain good oral health, as appropriate. Health teachers can also help these students to obtain proper dental care and, if necessary, orthodontic care (Perlman and Miller). The authors outline a program that can be implemented for each student to encourage good oral hygiene. Students should be given reinforcers when they complete the target behaviors, i. e. brushing, flossing, etc. This plan can be implemented in a variety of ways to encourage good oral health (Perlman and Miller). Other states have different issues with health care. Texas, for example, has been having problems paying for teachers’ health plans. They have recently begun offering teachers an additional $1000 that can be used for additional health care coverage, or whatever else they want. This is only one measure that is necessary to help the people make good health decisions. Having enough money to pay for health costs will enable people to have more options (Keller). Texas is not the only state that is having problems, however. Many school districts are having issues in negotiations over health care, including districts in Ohio, Wisconsin, Rhode Island, and New Jersey. Money is tight in all of these districts, and teachers in some cases are going on strike to protect their rights to health care and appropriate salaries. Funding is a serious issue in the area of health care right now (Ponessa). Another major concern in the area of health is that teenagers don’t have enough access to health care, especially preventative services. A recent article details the problems. Students whose families do not have health insurance cannot afford to see regular doctors. Even though who do see regular doctors are at a possible disadvantage, because the doctors are not trained to handle actual preventative care, such as weight loss counseling, cholesterol reduction counseling, sexual health screenings (including for STDs and more routine Pap smears for women), quitting smoking, and HIV awareness. Doctors address these issues in less than 5% of cases in which students go to the doctor for preventative care purposes (Santelli et al). Additionally, teenagers do have access to certain specialized clinics, like public health clinics, Planned Parenthood, etc. Even teens without insurance can go see doctors at these places, but again, preventative care is rare. You read "School Health Plan" in category "Papers" Also, many of these clinics are set up for adults, and may not be friendly to the teens who enter them. Instead, more health care options need to be available to teenagers so that they can take advantage of preventative care and make healthy decisions with their doctors. Teens see doctors as a reliable source of information, and they trust doctors, so it is obvious that doctors need to be involved in this situation (Santelli et al). Ideally, the authors think, schools should provide health services, because: â€Å"School health programs provide health services, health education, a healthy school environment, social and psychological services, physical education programs, school nutrition program, health promotion for teachers and staff, and integrated efforts with parents and the community† (Santelli et al). That is, schools can provide a totally comprehensive program, which reaches out to all aspects of a student’s life. School-based programs can increase access to health services for students who need them most, including poor and minority students. There is not yet any consensus on how and why schools should provide these services, but the opportunities and benefits are obvious. In addition to reaching certain populations of students, schools also feature a captive environment for students. This means that the delivery of services is easier, since students are already there, and spend several hours in school everyday. For students who may live several miles from the nearest public clinic, school-based services are much more convenient, and much more likely to draw students in (Santelli et al). The study then looks at which health programs are effective, and why. Schools and managed care operations will not want to provide services if they are not cost effective, so the study of benefits is important. One finding is that traditional hearing and vision screening is not particularly beneficial, as these conditions are not considered a threat to the school population. However, newer research shows that when schools attempt to vaccinate students, they are able to get up to 75% to participate. Along these lines, should a contagious disease (like measles) break out among students, schools can quickly identify the source, and vaccinate and/or treat students to stop the spread. Additionally, there is some evidence that STD screenings and pregnancy-prevention education has reduced the spread of STDs and the number of teen pregnancies. The authors recommend that local public health concerns be taken into account when schools are choosing what services to provide (Santelli et al). Schools and managed care organizations continue to be concerned with cost. Because no true studies on cost effectiveness are available, researchers have had to look at how well programs have done in changing behaviors. Also, health expenditures for major issues, like hospitalizations related to chronic conditions or STDs, pregnancy, etc. ay mean that organizations cannot stretch funding to provide appropriate preventative care, even after acknowledging that doing so may reduce these costs. So, further research on cost effectiveness and ways to treat adolescents is needed (Santelli et al). Examples of communities where health programs have been put in place successfully are possibly a mong the most encouraging stories available. A community in Michigan had low attendance rates and test scores, and high dropout, teen crime, teen pregnancy, and suspension rates. Their goal was to turn the school community around. To do so, they consulted community members, and ultimately settled on a plan that reflected Maslow’s hierarchy of needs. They offered better school lunches, more physical education, more health education, counseling services, health screenings and partnerships with local doctors, free daycare for teen parents, and preschool programs for three and four year olds. Over a five year period, the school saw a significant rise in attendance and graduation, and a significant drop in crime rates, dropout rates, and more. Test scores rose as well, because students were feeling better and were better cared for within the school. This community shows that by focusing on the students’ real needs instead of test scores, they were able to improve the quality of their programs and their positive effect on students’ lives (Cooper). The final article looks at how to create a health plan within a school, specifically relating to individual student needs. Many students have chronic health concerns, such as epilepsy or diabetes. In treating student health concerns, schools must be aware of any existing medical conditions their students have, and be prepared to treat them as needed. This includes administering any necessary medication, as well as knowing any specialized emergency procedures (EP). II. School Health Plan In developing a health plan for my own school building, I am looking to all of this research to see what is appropriate. First of all, it is obvious that the school needs a health program, because these show a significant benefit to students at all levels and in all areas of their lives – social, academic, health-wise, etc. When proposing this plan to school employees, the board of education, and the community, I will refer to these studies to show the need for such a plan. First, all students within the school need to have health education on a continuing basis. That is, health education should ideally be offered for about ninety minutes per week (three thirty-minute sessions) throughout the school year. In secondary schools, where schedules are more limited, health education should be offered everyday for one semester per year. Health classes will begin in kindergarten and carry through twelfth grade. Topics are to include current nutritional guidelines, selecting and preparing healthy meals, the role of physical education in health, anti-smoking, anti-drugs, frank information about teen sex and its consequences (to include HIV, all other STDs, pregnancy, and also social/emotional concerns), alcohol consumption, pro-social behavior, eating disorders, and any other community concerns. No students should be excused from these classes unless parents insist on religious grounds. Additionally, all students should attend physical education everyday from kindergarten through twelfth grade. Younger students need only twenty minutes; older students (middle school and high school) should have thirty minutes. Physical education must cover not only the basic sports, but also alternative fitness activities, like weight lifting, swimming (if there is access to a pool), walking, cardio equipment, etc. Physical education should take into account each student’s needs whenever possible (i. e. if a student is already physically fit, more opportunities can be given; if a student is overweight, starting slow should be allowed). Physical education teachers should coordinate with coaches of intramural teams, and encourage all students to participate. Some of these teams should be non-competing. The school should also offer health and counseling services. All students should be screened for any diseases that are spreading within the community (STDs, meningitis, pertussis, etc. as necessary) and immunized if appropriate. Students should also be offered the opportunity to see the school nurse (one should be in every building; ideally, one per every 400 students) if they are ill or have other health concerns. Preventative care should be emphasized and available, especially for athletes. Counseling should be available for any students with concerns about eating disorders, suicide, depression, relationship difficulties, abuse, unwanted pregnancy, or any other reason. Students should be encouraged to seek help if they need it, and if other students report that someone needs help, counselors should follow up with that student within the week. Anonymous reporting should be available for students who are concerned about others. Special programs for students who are seeking to quit smoking, alcohol or drugs, or who are pregnant should be provided. If possible, free daycare should be provided to keep teen parents in schools. Finally, any and all students who have health concerns or preexisting conditions should be able to get whatever help they need, whether it’s a permanent bathroom or nurse pass, or scheduled times during the day to take medication. All school personnel involved with the child (classroom teacher, nurse, special teachers, etc. ) should be aware of the student’s health concerns, including emergency procedures and allergies. With this plan in place, students should have their needs met in all different ways, and this will increase their focus in the classroom setting. How to cite School Health Plan, Papers

Interviewing Technique for Substance Abuse-Disorder Patients

Question: Discuss about theInterviewing Technique for Substance for Abuse-Disorder Patients. Answer: Introduction Substance abuse remains one of the main concerns of health care institutions. It involves overindulgence in drugs and/or other substances, which eventually leads to very bad effects on the health of an individual. There are however, psychological intervention techniques used by health institutions such as counseling centers and these include among others, motivational interviewing, and cognitive-behavioral therapy. This research focuses on motivational interviewing and CBT, fielding their benefits and their individual advantages when used in the treatment of Substance Use Disorders (SUDs). These aspects will include information sourced from different peer reviewed journals and presented in a form of a discussion. Motivational Interviewing Motivational interviewing refers to a psychological treatment approach, which is both client-centered and semi-directive and mainly focuses on ensuring that an individuals motivation to change improves and/or strengthens. This technique is used in the treatment of individuals suffering from substance abuse disorder involves the provision of both support and empathy to SUD patients (Knopf, 2015). It includes reflective listening aimed at helping people to work through their individual ambivalence concerning changing their behavior, boosting their motivation and the extent of their commitment to change. The practice is usually brief and involves between 1-4 meetings each of which may take 1 hour long (Storr, 2011). The choice of the venue lies between the two involved parties and may include outpatient clinics, correctional facilities, among others. MI among SUD-clients uses four major principles. These according to Kuhlmann Bischof (2012) include expression of empathy to patients, de velopment of discrepancy, the development of self-efficacy and the lastly, the rolling with resistance principle. Examples of Motivational Interviewing Use of open ended questions-Questions such as What are your dreams?/What is your idea?/who has help you? enables the interviewer to understand the patient in terms of how they could be improving due to the therapies offered. Probing for more information helps the interviewer to understand other factors that might be holding back the patient to the abuse of drugs. The use of Affirmations: These include mentally supporting the patient by accurately describing their strengths to them. This enables the patient to feel appreciated and thus continue following the counselors directions in overcoming drug abuse practices. Reflections-The counselor needs to help the patient to reflect and listen to themselves. This involves the use of repeating and/or rephrasing what the patient says, paraphrasing their speech and feeling empathy for them regarding their emotions. Summarizing the storyline of a patient including challenges, solutions, strengths and emotions, motivates them and gives them a wider picture of who they are likely to become once over with the disorder. Benefits of MI in SUDs Treatment The first benefit of MI is that the technique is quick and only requires 2 to 4 sessions to achieve results. The fact that it can be administered faster makes MI one of the most inexpensive therapeutic techniques for treating SUDs (Kuhlmann Bischof, 2012). Secondly, motivational interviewing has been proven very effective in influencing SUD-patients to change from their high-risk behavior. Having developed self-efficacy, individuals opt to avoid this behavior step by step and eventually quit the abuse of substances. Further, motivational interviewing is said to increase the probability that an individual will be committed to seeking addiction treatment (Storr, 2011). It predicts the possibility of continued such for assistance and eventual success in getting rid of risky behaviors. Disadvantages of MI One of the disadvantages of motivational interviewing is that it does not have a definitive process that will ensure that SUD-patients who have committed to change will keep on doing so forever (Johnson, 2013). Therefore, there is need for follow-up activities apart from recommending participation in support groups. Secondly, motivational interviewing has no specific clinical tools to follow and therefore counselors must accurately use their instincts to handle patients. Unlike in clinical approaches, MI counselors need to use friendly but well-thought out means to handle each particular case of SUD-patients (Kuhlmann Bischof, 2012). This is because every patient has a unique concern and personality. Further, since there is need for cognitive clarity and patient participation, MI cannot be used in case where a patient has suffered physically based mental disorder. This is because these individual have less control on their responses and therefore cannot effectively participate in th e interview. Cognitive-Behavioral Therapies in SUD Treatment CBT refers to a talking therapy that enables an individual to handle their own problems through changing their thinking and their behavior. The technique is based on the assumption that an individuals physical sensations, actions, and feelings are all interconnected (Hersh et al, 2013). CBT is also based on the concept that negative thinking traps SUD-patients thinking. It thus helps break down a clients problems positively into smaller parts and shows them the procedure to change from negative thinking. It involves 1or 2 sessions per week held between the SUD-client and the CBT counselor. It might take between 5 and 20 sessions each lasting between 30 to 60 minutes, to complete the process (Veliz McCabe, 2014). From the interviews, the therapist finds out how to help the patient change from using substances and indulging in risky behaviors among other negative thoughts. The therapist then encourages the client to practice positive behavior and thinking while following up this trend in the subsequent meetings. Examples of CBT in SUD Treatment One example of CBT in cognitive intervention includes a situation where a woman with low self-esteem due to SUDs finds the help of a therapist who identifies their cognitive distortions and makes her more positive in life. Another example of CBT through behavioral intervention includes a situation where SUD clients together with the therapist identify the high-risk factors that make the client vulnerable to using drugs (Veliz McCabe, 2014). As a result, the therapist may help the client replace and reduce the high risk factors such as influential friends, making them less vulnerable to SUDs. Benefits of CBT in SUD-Treatment One of the major benefits of CBT is that it enables both the client and the therapist to work with togetherness to recognize harmful patterns of thinking and to find the alternative ways of thinking (Hersh et al, 2013). This therapeutic relationship enables SUD-patients to change from high risk behaviors due to positive thinking. Secondly, CBT can be administered to both individuals and/or to groups. Therefore, this approach can be less costly and convenient especially in areas where there is, a high number of substance users such as slums (Veliz McCabe, 2014). Another benefit of CBT is that it enables clients to come up with their own strategies to cope with and manage stressful and difficult situations after addiction treatment. Further, it has been established that CBT, helps clients to explore their own destructive behavior among other beliefs, which bring about ill behavior. As a result, they are able to find alternative healthy thoughts that enable them live a meaningful life. Disadvantages of CBT The first disadvantage of CBT interviews is that it is unsuitable for clients suffering from complex mental problems and learning difficulty (Burrow-Sanchez Wrona, 2012). This is because the process involves structured sessions to determine how to help patients live with positive thinking. Secondly, CBT mainly focuses on solving an individuals current behavioral problems and relies on their capacity to make changes in their thoughts, actions, and feelings. This means that it does not address the wider problems from families and society, which might be significantly affecting SUD-patients health and wellness (Hersh et al, 2013). Further, CBT requires regular attendance of sessions and in case one has other commitments such as a job, it is likely that they will be inconvenienced and more probably, may need a longer period to realize behavior change. Research Limitations Obtaining information from different peer-reviewed journals was hectic and time consuming. Since this research needed well-founded information regarding interviewing techniques, the researcher had to spend a lot of time comparing information from different secondary sources in order to settle on the issues presented above. Access to online journals regarding the topic was limited. Since research instructions emphasized on the need to use peer reviewed journals that were published not more than 5 years ago, it was difficult sourcing for such journals online. This is because most of them required online purchasing and yet they had the latest information concerning the topic. Conclusion In conclusion, therefore, interviewing techniques are very crucial tools in the management of substance abuse disorders. This research presents the benefits of using two of these techniques, motivational interviewing and CBT. It also presents the disadvantages of the two techniques when used to treat substance abuse disorders among clients. Further, the researcher has presented the limitations that prevailed while carrying out the study including time-consumption and limited access to resources. The research is based on the information obtained from various peer-reviewed journals that focused on the same topic of study. References Burrow-Sanchez, J. Wrona, M. (2012). Comparing culturally accommodated versus standard group CBT for Latino adolescents with substance use disorders: A pilot study. Cultural Diversity And Ethnic Minority Psychology, 18(4), 373-383. https://dx.doi.org/10.1037/a0029439 Hersh, J., Curry, J., Becker, S. (2013). The Influence of Comorbid Depression and Conduct Disorder on MET/CBT Treatment Outcome for Adolescent Substance Use Disorders. International Journal Of Cognitive Therapy, 6(4), 325-341. https://dx.doi.org/10.1521/ijct.2013.6.4.325 Johnson, R. (2013). Motivational Interviewing with Adolescents and Young Adults. Motivational Interviewing: Training, Research, Implementation, Practice, 1(2), 20. https://dx.doi.org/10.5195/mitrip.2013.34 Knopf, A. (2015). To reduce teen substance use, create resilience and treat MI. Alcoholism Drug Abuse Weekly, 27(47), 5-6. https://dx.doi.org/10.1002/adaw.30416 Kuhlmann, T. Bischof, G. (2012). Motivational Interviewing. Suchttherapie, 13(03), 107-107. https://dx.doi.org/10.1055/s-0032-1321916 Schumacher, J. (2013). Motivational Interviewing Step By Step. Motivational Interviewing: Training, Research, Implementation, Practice, 1(2), 24. https://dx.doi.org/10.5195/mitrip.2013.37 Storr, E. (2011). Motivational interviewing: a positive approach. Innovait, 4(9), 533-538. https://dx.doi.org/10.1093/innovait/inr045 Veliz, P. McCabe, S. (2014). Examining Potential Substance Use Disorders Among Former Interscholastic Athletes. Substance Abuse, 36(4), 400-406. https://dx.doi.org/10.1080/08897077.2014.988324

Ashtead

Introduction Background Information Ashtead group provides rental solutions in various situations such as facilities management, nonresidential construction markets, disaster relief, traffic management and major event management. It provides equipment such as lifts, powers, generates, moves, digs, pumps, and directs for rental purposes.Advertising We will write a custom essay sample on Ashtead specifically for you for only $16.05 $11/page Learn More It was founded in 1947 as Ashtead Plant Hire Equipment Limited. The Group trades in the London Stock Exchange under the ticker symbol AHT (Ashtead Group PLC. 2012a; Ashtead Group Plc. 2012c) Markets Division The company operates in the United States of America and the United Kingdom. In the US, it operates under the brand name Sunbelt Rentals and A-plant in the UK. Sunbelt has over 372 outlets across various cities in the US while A-plant has over 110 outlets in the major cities of the UK. In the US, the Grou p has engaged about 6,822 employees while in the UK, it has employed about 1,916 employees. The operating revenue for Sunbelt as at 31st October 2012 amounted to 1,041 million while for A-plant amounted 199 million. Based on the comparisons above, it is evident that the operations of Ashtead Group in the US are greater than the operations in the United Kingdom. Market share of Ashtead Group is greater in the US than the UK. In the US, it is the second largest in the equipment rental business while in the UK it is the third largest (Ashtead Group Plc. 2012b; Ashtead Group Plc. 2012d, Ashtead Group Plc. 2012f). Issues Facing the Management The key issue facing management is how to manage the leverage level of the group so as to attract new investors (Smith Smith 2003). The company aims to seek new funding that can help in expanding the business but the company cannot receive either equity or debt because of the high leverage (Ashtead Group Plc. 2012g).Advertising Looking for ess ay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Commercial Financial Environment Ashtead’s Business Environment Ashtead Group operates in construction equipment rental business industry both in the US and the UK. Since it operates in various locations and deals in a wide range equipment, the Group faces a complex business environment. The location of the businesses offers the Group a diverse legal and political environment for operation (Berkshire Hathaway Company 2013). It is necessary to analyze both the internal and external environments of the Group so as to ascertain the strengths, weaknesses, opportunities, and threats that the entity faces (Skinner Kim 2010). Ashtead Group has a strong brand both in the US and UK. This enables it to be on top of the competition. The strong brand name has been built for over six decades. Another strength of the company is that it has a wide range of products and services to offer. Diversification is a source of financial strength for the company because if one product does not perform as expected in the market, revenue from other products will cushion the company finances (Shim Joel 2008). Thirdly, the group has extensive and well built distribution network both in the US and the UK. It enables the Group’s products and services to penetrate the markets easily. Also, the Group engages qualified personnel to run businesses. This ensures quality work in all areas of operation (Sirman, Hitt, Ireland 2003). Further, the Group makes use of latest technology in the market. Finally, the Group has good business relations with the host countries. It complies with all the regulatory framework. This creates a conducive environment for its operations (Siddidui 2005). A major weakness for the company is that the markets are concentrated in the US and the UK only. Any major changes in the two markets are likely to impact heavily on the financial performance of the Group.Advertising We will write a custom essay sample on Ashtead specifically for you for only $16.05 $11/page Learn More The company has a number of opportunities to venture into. To start with, the global recession that hit the global economy made the Group to stop most of its expansion programs (Steven 2007). Therefore, the Group has a number of investments to make (Rachels 2009). Secondly, the company should consider investing in regions outside the US and the UK. This offers the Group opportunity to expand its global presence and increase revenues (Samuels, Wilkes, Brayshaw 2005). The company faces a number of threats. First, the constantly changing regulations impacts on the operations of the business (Power, Walsh, O’ Meara 2007). For instance, the US came up with a law which requires a change from the use of off road diesel engine to full compliance with the Tier 4 carbon emission regulation (Ashtead Group plc. 2012e, Ashtead Gr oup Plc. 2012h; Ashtead Group Plc. 2012i). This change is capital extensive and would impact heavily on the finances of the company. Further, the environmental, health and safety regulation are quite expensive to comply with. Stiff competition is another threat that the company faces (Shapiro 2005). It is one of the top equipment rental companies both in the US and UK. The company faces competition from other large companies such as United Rentals, RSC Equipment Rental, Hertz Equipment Rental Corp, and Home Depot Rentals. Ashtead Competitive Position The key driver for the construction rental business is the construction of non-residential and heavy constructions (The American Rental Association 2012a; The American Rental Association 2012b).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The construction equipment rental business does well in the US more than the UK. In the US there are over 12, 200 construction rental businesses. The US industry has experienced tremendous growth in the recent past. The growth is characterized by increasing fleet utilization rates. Large companies have increased their fleet sizes. In addition, there is significant acquisitions and mergers geared towards increasing the market size (Penton Business Media 2012a). As at 2011, the four large companies these are, United Rentals, RSC, Sunbelt, and Hertz Rental Equipment (The Financial Times Limited 2011) accounted for 22% (equivalent to $27 billion) of the market share for the construction rental equipment industry in the US. The remaining 78% is shared among the other small companies. It shows the existence of stiff competition among the top four large companies. The table below shows the top companies in the US their market share. Source – (Penton Business Media 2012b) Constructio n rental equipment industry is not booming in the UK as compared to the US market. In the UK the company Ashtead faces competition from companies such as Hewden, Hawk, Speedy. The top ten companies account for about 53% of the plant hire industry. Speedy takes 15% of the market share. Based on the gross book value, Speedy Hire is the largest followed by HSS Hire Service, A-Plant Tool Hire, GAP Group, and Jewson Tool Hire (Executive Hire News 2007). The market share of the companies has greatly changed over the years. The tables below show the market share in 2012. US market Company Market share 1 United Rentals 70% 2 Sunbelt 14% 3 Hertz Equipment Rental Co 6% 4 Top 4-10 US 4% 5 Others 6% UK market Company Market share 1 Speedy 61% 2 A-plant 11% 3 HSS 6% 4 VP 6% 5 Hewden 5% 6 Lavendon 4% 7 GAP 4% 8 Others 3% Source of data – Ashtead Group Plc. 2012j; Ashtead Group Plc. 2012k Potential for Future Growth and Major Market Risks With the s hift to rental business in the US, the market is likely to grow to a greater extent in the near future. Further, the global financial crisis caused a number of firms to shut down due to their inability to make sales that can cover the fixed cost of operation (Choi 2003). Also, the rapid change in technology and regulations is quite expensive for small firms comply with (Bragg 2006). Therefore, they are forced to shut down. The industry is capital intensive and only stable firms like Ashtead Group can survive the market dynamics. This creates a big opportunity for growth. Despite the availability of opportunities, the Group faces a number of market risks that cast doubt on its ability to tap the opportunities. First, is the economic conditions. Down swings slow down the rates of growth of the Group (Brealey Myers 2009). Secondly, competition from local established firms reduces the market share and revenues for the Group. Thirdly, since the industry is capital intensive, obtaining f inancing is a challenge. For instance, debt financing is limited to a fixed number of years. One source of financing cannot be adequate for the nature of the business (Brigham Joel 2009). Fourthly, rapid changes in technology are a major threat to the continuity of the business because the business relies on technology. Investing in the latest technology is a risk to the Group. Also, attracting and retaining highly qualified personnel is a key risk for the company (Bull 2007). Finally, compliance with health, safety, environmental, and other regulations is a major hindrance to the future success of the Group (Campbell 2005). These regulations change from time to time. Analysis of Performance Over Past Five Years The financial statement as they are providing the users with a narrow insight into the financial strength and weaknesses of the company (Dubrin 2008). Therefore, it is of essence to carry out an in depth financial analysis of the performance of the Group. The analysis makes use of the income statement, statement of financial position and the cash flow statement. The financial analysis is carried out from a debt provider and a shareholder point of view (Dayananda, Irons, Harrison, Herbohn Rowland 2002). The shareholders if mostly concerned with the profitability and returns of his investment while a debt provider is mostly concerned with the leverage of the Group. Ratios analysis and graphs will be used to carry out financial analysis of the group for a five year period (Erricos Cristian 2007). Profitability and financial gearing ratios will be computed for the company. The table below shows the profitability of the company. Profitability ratios 2007 2008 2009 2010 2011 Net profit margin 0.88% 7.41% 5.60% 0.25% 0.09% Return on assets 0.49% 4.65% 3.38% 0.12% 0.06% Return on equity 1.99% 17.62% 11.98% 0.42% 0.19% The profitability ratios for the company are low. The net profit margin range from 0.09% to 7.41%. Return on assets range from 0. 06% to 4.65% and return on equity range from 0.19% to 17.62%. The Group experienced an increase in profitability from 2007 to 2008 thereafter financial performance declined sharply. The profitability of the Group is on a downward trend since 2008. This might not attract a potential investor. The graph below shows the trend of profitability from 2007 to 2011. Leverage Ratios Gearing ratios looks at the capital structure of the company (Eugene Michael 2009). It focuses on the amount of capital financed by debt in relation to the amount financed by equity (Collier 2009). It also focuses on how well the company’s profits cover interest expense. This ratio is of essence to a potential debt provider sine it shows them how levered a company is and the ability of the company to meet the interest expense as they fall due (David 2003). The table below shows the gearing ratios for the company of the five year period. Leverage ratios 2007 2008 2009 2010 2011 Total debt to equity r atio 3.02193093 2.786282 2.538783 2.38297 2.320523 Interest coverage ratio 0.71448763 2.466578 1.011834 1.078431 0.979818 In the above table, the total debt to equity ratio is greater than one for the five years. This implies that the proportion of debt financed by debt is greater than the proportion financed by equity. This shows that the company is highly levered and not desirable for a potential investor. Equity financing takes a small proportion of the capital structure. A low debt to equity ratio is desirable. Further, interest coverage ratio ranges from 0.7144 to 2.467. These ratios are low and they indicate that the company has difficulties in paying the finance cost. For instance in 2007 and 2011, the company’s operating income could not pay the cost of interest. Therefore, leverage of the company is very high. It might be very risky for a potential debt provider to out in mode debt in the company. The graph below displays the trend of gearing ratios for the five year period. From the above review, it is evident that the company relies more on debt financing than equity financing. Total debt exceeds the total equity. The company uses debt from the bank and finance lease. The situation is not desirable since it increases the finance cost and reduces amount attributed to shareholders. The company’s financial position is not desirable for potential debt provider and a shareholder. Three Year Forecast for Operating Profits The Group focuses on maintaining an organic growth of returns in excess of 20%. The growth is achievable due to the fact that there is a potential for growth in the US market because the infrastructure in the US is quite dilapidated and there is need to replace or repair. Besides, the target markets are recovering from the period of recession. Therefore, there is a possibility of achieving the growth of 20%. Also, in 2011 and 2012, the company has recorded growth in performance which is likely to continue for a few mo re years. It is evident that the company experiencing a phase of growth in operation. The forecasts for operating income is based on the assumption that the operating income grows at 10% annually in the first year, 15% in the second year and 20% in the third year. This rates portrays an organic growth. The company will achieve the20% growth in the third year. The table below shows the forecasts for the next three years. It also shows the current operating profit for the group. 2012 2013 2014 2015 Revenue Rental revenue 1005.9 1106.49 1272.464 1526.956 Sale of new equipment Merchandize and equipment 44.7 49.17 56.5455 67.8546 Sale of used rentals 84 92.4 106.26 127.512 1134.6 1248.06 1435.269 1722.323 Operating cost Staff cost 334 367.4 422.51 507.012 Used rental equipment sold 74.6 82.06 94.369 113.2428 Other operating costs 344.9 379.39 436.2985 523.5582 753.5 828.85 953.1775 1143.813 EBITDA 381.1 419.21 482.0915 578.5098 Depreciation 199 .8 219.78 252.747 303.2964 Amortization 3.1 3.41 3.9215 4.7058 584 642.4 738.76 886.512 Operating profit 169.5 186.45 214.4175 257.301 Based on the forecast above, the company will make an operating profit of  £186.5 million in 2013,  £214.42 million in 2014 and  £257.30 million in 2015. Forecasts are conservative and they take into account risks arising from the exchange rate fluctuations. Besides, considering that the economy just recovered from the recession, it is most certain that it will experience recovery thereafter a boom. This also applies to companies. Therefore, the forecasts are based on a 90% confidence that the Group will earn the forecasted annual operating profits or even more but not less. The graph below shows the trend of forecasted operating profit for the next three years. Future Cash Flow and Funding Needs Funding is required to achieve the growth in operating profit forecasted above. The funding should be adequate so as to meet the working ca pital and capital expenditure needs (Mark 2002). From the income statement of the group, it is evident that the a great proportion of revenue originates from rental income. Therefore, it is important that the company incurs adequate amount of money on fleet planning. This is with regard to size, number and fleet utilization. The graph below shows the cash flow and funding for the past five years. 2007 2008 2009 2010 2011 2012 Revenue  £millions 896 1,048 1,073 837 949 1,135 Cashflow  £millions -376 -1 246 190 19 -35 Fleet age in months 31 31 35 44 44 37 Fleet size  £million 1,434 1,528 1,763 1,689 1,632 1,880 EBITDA margin (%) 35 35 33 30 30 34 Return on investment (%) 14 12 10 5 7 12 Based on the market conditions, the management is optimistic about improvements in performance and a strong market. The revenue might grow up to 50%. However, this depends on the growth of the fleet and improvement in yield. The management also intends to reduce leverage status of the group up to twice the value of EBITDA. The Group also intends to reduce fleet age to between 34 and 38 years. Fleet size is likely to increase up to about 25% and EBITDA is also likely to exceed the previous peak up to 35%. Finally, the return on investment is likely to increase in the coming years. The expected performance can be used to forecast future cash flow and funding needs for the next three years. The table below shows the forecasts for the next three years. 2012 2013 2014 2015 Revenue  £millions 1,135 1,248.5 1,373.35 1,510.685 Cash flow  £millions -35 76 106.4 148.96 Fleet age in months 37 38 35 34 Fleet size  £million 1,880 2,068 2,481.6 3,102 EBITDA margin (%) 34 35 37 40 Funding: Debt 1,117.1 1,059.08 1,054.266 967.614 Equity 481.4 481.4 481.4 481.4 Total debt to equity ratio 2.320523 2.2 2.19 2.01 Revenue will grow at 10% in 2013, 15% in 2014 and 20%in 2015. The growth is conservative and achievable due to expansion of the US mark et. Cash flow will also grow over the years. It is based on the assumption that the debt will reduce while equity will remain constant thus reducing the leverage level of the company. This implies interest expense will decline thus improving the cash flow (McDaniel Gitman 2008). Increase in cash flow will also arise from an increase in revenue and operating profit. The fleet age is likely to go down from 38 to 34 months. Also, fleet size is likely to grow in the coming years. It will increase up to  £3,102 in 2015. With the increase in level of operation and revenue, EBITDA will go up to 40% in 2015. Management of the company intends to reduce the leverage level of the company. They expect to reduce the net debt over the years. The funding needs are based on the assumption that debt funding will go down by 5% every year to  £967.61 in 2015. Equity funding will remain constant over the period of the forecast. The funding mix will enable the company to achieve a total debt to equ ity ratio of 2.0 by 2015 from 2.32 in 2012. The budget above shows the funding needs of the company for the next three years. It shows the expected flow of revenue, cash flow needs and funding needs. The budgets take into account the capital expenditure, depreciation, working capital movement, taxation, and dividends (Maher, Stickney, Weil 2011). All these are shown in the net cash flow. The forecast is also based on the assumption that the company will reinvest a substantial amount of net income into the business. It is due to the fact that the current capital mix and performance of the entity may not allow it to obtain external funding easily. This may continue for the next three years thereafter it can seek external source of funding (Mankiw 2011). Therefore, the estimates are based on a 90% level of confidence that the company will achieve and even surpass the estimates in the estimates above. Capital Structure, Funding Analysis and Valuation Analyzing the capital structure of a company is of utmost importance because it determines the rate at which a company grows (Kinney, Skaife William 2007). Further, it also dictates the amount of working capital that is available for the company. The capital structure shows the amount of various ways of funding that the company uses (Kymal 2007). It is of importance to maintain an optimum mix of various sources of funds because the mix have an impact on the profitability, cash flows and amount attributed to shareholders (Longenecker, Petty, Palich, Moore 2009). The capital structure that a company decides to use depends on the market the company operates in, the financial planning through the business cycle, the operational excellence of the group and the the next phase of growth patterns of the company (Lys, Collins, Badertscher 2007). The table below shows the current capital mix of the company for the year 2012. Source of funds Amount Proportion 1 Total debt 875.6 61.22% 2 Total equity 554.7 38.78% T otal 1,430.3 100 The current capital structure of the company comprises of debt and equity financing. The total debt amounts to  £875.6 million. It is equivalent to 61.22%. The company uses lease financing, secured bank debt, and secured bank note. Total equity amounts to  £554.7. It is equivalent to 38.78% of the capital structure. Therefore, it is evident that the debt financing is greater than equity financing. The debt to equity ratio is 2.3. Optimal Level of Debt Determination of optimal level of debt is a vital decision on financing options to use. Optimal level of debt is the level at which the cost of capital is minimized. It is the level beyond which a firm should not borrow. There are various studies that have been conducted to show the optimal debt – equity mix. The most popular theory is the Miller and Modigliani model (Mintz Morris 2011). The model asserts that in the absence of transaction cost, the capital structure of the company has no effect on the v alue of the firm (Moorad, Joannas, Pereira, Pienaar 2003). Therefore, the capital mix a firm uses if of no importance. The theory further asserts that the capital structure of a company is irrelevant. However, various scholars greatly criticized this model (Newage International Publishers 2012). They argue that the Miller- Modigiliani model is based on unrealistic assumptions of absence of taxes, efficient market, absence of agency cost and perfect information (Nicholson 2000). In the contemporary business world, these assumptions are quite unrealistic and do not exist (Nikolai, Bazley, Jones 2011). An example of a scholar with a contrary opinion is the Aswath Damodaran. The scholar is against the irrelevance model. He argues that capital structure has an impact on the value of the firm (Michael Jon 2010). Damodaran argues that the amount of debt in the capital structure of the company affect cash flow thus changing debt changes cash flows to equity because cash flow is attained from assets after repayment of debt and making reinvestment for future growth (Melicher Leach 2009). He further asserts that as debt increases, equity becomes riskier and the cost of equity will definitely increase. The optimal debt ratio depends on a number of factors (McLaney Atrill 2008). These are the tax rate, the pre – tax returns on firm, variation in earnings and default spread (McGraw-Hill Higher Education 2007). Computation of optimal debt will be based on the Damodaran mode thus the amount of debt has an effect on the capital structure of the firm. The Ashtead Group uses a number of key performance indicators to measure performance for a given period. Of most importance are the underlying earnings per share, return on investment, and net debt and leverage at constant exchange rate. The Group aims to maintain a â€Å"conservative balance sheet structure with a target range for net debt to underlying EBITDA of 2 to 3 times† (Ashtead Group Plc. 2012e). The Gr oup also aims to â€Å"sustain significant availability that is, the difference between the amount we are able to borrow under our asset-based facility at any time and the amount drawn through the cycle† (Ashtead Group Plc. 2012e). It is worth noting that the Group operates in an extremely capital intensive sector. The company heavily relies on asset based financing. It is also of utmost significance to evaluate the returns on assets of the company for the past five years. This would help ascertain if the company is using the assets adequately to generate returns. Return on assets 2007 2008 2009 2010 2011 Return on assets 0.49% 4.65% 3.38% 0.12% 0.06% From the ratios calculated, it is worth noting that the return on assets of the company are quite dismal and they have a declining trend since 2008. This trend is attributed to the global financial crisis which resulted to low profitability and a sharp decline in equipment rental business. The table below shows the amou nt debt of the company for the past five years. 2007 2008 2009 2010 2011 Total debt 1,198.8 1,226.8 1,335.4 1,192.2 1,117.1 The table above shows the total amount of debt the Group has both short term long term debt. From the table, it is evident that the amount of debt increased between 2007 and 2009 thereafter it started to decline. The decline is attributed to the management decision to reduce debt to equity ratio to 2 times. The trend of total debt is shown in the graph below. Calculation of of optimal debt for the group will be based on the underlying theoretical models. The weighted average costs of capital approach will be used to calculate the optimal debt. Based on this approach, the cost of debt is determined by a number of factors these are, the rate at which the company can borrow long term today (risk free and a default spread) and the tax rate. The cost of debt is not similar to the interest rate at which a company obtains debt. The cost of debt is computed a s shown below. Cost of debt = (risk free rate + default spread) (1 – t) Risk free rate = 9% Default spread = 0.4 Tax rate = 26% (corporate tax in the UK is 26%) Substitute the values (9% + 0.4)0.26 = 6.956% = 7% The cost of debt is 7%. It is based on the assumption that risk free rate is 9% and the default spread is 0.4%. Determination of the optimal amount of debt majorly depends on the objective the firm. Use of debt is cheap and it reduces the weighted average cost of capital. However, increasing the amount of debt increases the amount of weighted average cost of capital as gearing, financial risk, and beta equity goes up. If the Group’s objective is to maximize shareholders’ wealth, then the company must reduce the amount of debt thus reducing beta equity. Further, the amount of debt is inversely related to its risk. Cost of equity denotes the of return shareholders require for their investment. Equity is a significant component of the capital structure. It is worth noting that the amount debt in the capital structure has an impact on the cost of equity. High amount of debt increases risk of equity thus increasing the risk premium that shareholders will require for their investment. Cost of equity is computed using the formula shown below. Cost of equity = risk free rate + Beta * Risk premium Risk free rate shows the rate of interest that does not have default risk, no reinvestment risk and are in the same currency. Beta measures the market risk in which the group operates in. Beat depends on the type of business, operating leverage and financial leverage. Finally, risk premium shows the premium for the average risk of investment. Cost of equity = 9% + 0.4 * 5.82% = 11.328% = 11.33% The calculations above shows that the cost of equity is 11.33%. The risk premium is relatively high because of the high leverage. Computation of the weighted average cost of capital is shown below. The weighted average cost of the capital = cost of equity * proportion equity the capital structure + cost of debt * proportion debt in the capital structure. Weighted average cost of capital = 11.33% * 38.78% + 7% * 61.22% = 8.68% The calculations above can be summarized as shown in the table below. Source of funds Amount Proportion Cost of capital 1 Total debt 875.6 61.22% 7% 2 Total equity 554.7 38.78% 11.33% Total 1,430.3 WACC 8.68% Even though the market for equipment rental is likely to grow rapidly and equipment rental businesses will require adequate funding so as to tap the growing market especially in the US, there is a need for the Group to maintain a capital mix that will maximize shareholders’ wealth. Debt offers a cheap source of financing though it reduces shareholders’ wealth. The optimal level of debt in the capital structure should be 50% of the total amount of debt. Implications of Optimum Level of Debt in the Capital Structure Currently the proportion of debt in the capital structure is 61.22% . In the event that the proportion of debt is reduced, the risk of debt will go down. Therefore, risk premium used in debt calculation will go down. Summary of calculations is shown below. Cost of equity = risk free rate + Beta * Risk premium Cost of equity = 9% + 0.4 * 3.82% = 10.53% = 10.53% Once the risk premium reduces, the cost of equity also reduces. The calculation for the weighted average cost of capital is shown below. The weighted average cost of the capital = cost of equity * proportion equity the capital structure + cost of debt * proportion debt in the capital structure. Weighted average cost of capital = 10.53% * 50% + 7% * 50% = 8.77% From the calculations, it is evident that reduction of the amount of debt to 50% reduces the cost of equity from 11.33% to 10.53%. Further, the weighted average cost of capital increases slightly from 8.68% to 8.77%. The information is summarized in the table below. Source of funds Amount Proportion Cost of capital 1 Total debt 715 .15 50% 7% 2 Total equity 715.15 50% 10.53% Total 1,430.3 WACC 8.77% Criteria for Evaluating Future Funding Needs Investment decisions require adequate review before injecting funds into the investments because they require massive capital (Arnold, 2008). Further, the decisions are irreversible. Also, there are competing demands for capital therefore, funds should only be channeled to most viable ventures (ACCA 2012; Mankiw 2012). There are a number quantitative criteria that can be used to evaluate investment. The firm’s key goal is to reduce leverage and increase returns. A significant quantitative approach is the net present value approach (Khan Jain 2006). It shows the present value of net benefits that a firm expects. It is a superior method of evaluating project because it uses cash flow for the entire project life. Further, it makes use of time value of money. However, it is complex to compute. A second approach, is the payback period (Holmes Sugden 2008). Th e Group should invest in projects that promises an early return due to the swings in the market. An advantage of this approach is that it offers an investor an opportunity to rank project (Troy 2009). However, the criterion does not make use of cash flow after the payback period (Tutor2u: Variance analysis 2012). Finally, the management can use the internal rate of return to evaluate the project (Vance 2003). The method makes use of cash flow for the entire life of the project (Vandyck 2006). Further, it takes into account the time value of money (Watson Head 2007). However, it is difficult to compute (Weiss 1998). Also, there is no definite way of computing the value of internal rate of return (Willekens Numan 2010). Valuation of Equity Valuation of equity shows the value of a company based on the current assets and its position in the market (Zahra George 2002). The valuation is of significance to potential shareholders and debt providers so as to know how the shares of the com pany performs in the market (Atrill 2009). There are a number of models that can be used to value equity of the company, these are, price earnings ratio, dividend discount model, and dividend growth model. Valuation of equity will be carried out using a price earning ratio. It is a ratio of market value per share and earnings per share (Fahey 1999). Using this valuation model, the value of equity is  £328.8. Appendix one shows the share price of the company from July 2012. From the table, it is evident that the company’s shares has been trading at a price greater than the intrinsic value of the shares. Financial Risk Management Considering the fact that the company operates in two markets, it is exposed to currency and interest risks. If left unmanaged, the risks can impact greatly on the earnings of the company (Fraser 1990). The company does not trade in financial instruments. From a review of the capital structure of the company, it is observable that the company has fix ed and variable rate of debt. â€Å"The group policy requires borrowings to be held at amortized costs thus the carrying value of fixed debt is not affected by changes in the market. There is no exposure to fair value interest rate risk†( Ashtead Group Plc. 2012e; Globusz Publishing 2012). Upon review of the financial statements of the company, it is evident that the pretax profit of the company will change by about  £5.4 million for a percentage change in the interest rate applicable to the variable rate of debt after tax effects, equity changes by  £3.2 million. The interest rates are managed through interest rate swaps (Gibson 2010). Currency exchange risk is restricted to risks arising from the translation. There are no risks arising transaction since the Group does not engage in any foreign transaction (Glen 2007). The Group reports in sterling pounds while most of the assets and liabilities are in US dollars. The Group’s exposure to currency risk is quite lim ited because the most transactions are carried out in local currency (Helfert 2001). Besides, the Group does not hedge on the translation of profits arising from the US market. Further, currency exchange risk on significant non trading transaction are treated in isolation (Have, Have, Stevens, Elst Pol- Coyne 2003). From the review, the group is significantly exposed to interest rate changes. However, the treasury department adequately manages the financial risks adequately. Treasury The treasury department is mandated to â€Å"monitor liquidity, currency, credit and financial risks† (Ashtead Group Plc. 2012e). Further, the department â€Å"manages and monitors the Group’s financial risks and internal and external funding requirements in support of the Groups corporate objectives† (Ashtead Group Plc. 2012e.) The group does not trade in financial instruments. The financial aim of the company is to reduce leverage, increase cash flow, increase revenue and increas e fleet size (Haber 2004). In monitoring liquidity, currency, credit and financial risks, the Treasury department will ensure that the company has adequate liquidity (Heldman 2005). Further, they will aid the management to monitor the capital structure of the Group. Reference List ACCA 2012, Optimum capital, http://www.accaglobal.com/content/dam/acca/global/PDF-students/2012s/sa_junjul09_lynch.pdf. Arnold, G 2008, Corporate financial management, Prentice Hall, Harlow. 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Ashtead Group Plc. 2012j, Annual report account 2007, http://www.ashtead-group.com/doclib/170759-ashteadar2007indexed.pdf. Ashtead Group Plc. 2012k, Annual report account 2006, http://www.ashtead-group.com/doclib/114818-annualreport2006full.pdf. Atrill, P 2009, Financial management for decision makers, Financial Times Prentice Hall, Harlow. Berkshire Hathaway Company 2005, Hyperion delivers improved business forecasting for Ashtead Group plc., http://www.businesswire.com/news/home/20050926005339/en/Hyperion-Delivers-Improved-Busin ess-Forecasting-Ashtead-Group. Bragg, S 2006, Financial analysis: A controller’s guide, John Wiley Sons, Inc., New Jersey. Brealey, D Myers, T 2009, Principles of corporate finance, McGraw Hill, New York. Brigham, F Joel, F 2009, Fundamentals of financial management, South-Western Cengage Learning, USA. Bull, R 2007, Financial ratios: How to use financial ratios to maximize value and success of your businesses, Elsevier, Amsterdam. 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Appendix 1 Date Ashtead Group PLC share prices Volume 06-07-12 262.4 4,403,901 09-07-12 258.3 1,437,408 10-07-12 266.3 1,174,345 11-07-12 255.3 1,318,738 12-07-12 250.8 1,932,608 13-07-12 262.8 876,128 16-07-12 261.9 1,369,786 17-07-12 256.6 1,078,060 18-07-12 264.1 1,389,897 19-07-12 254.1 2,985,573 20-07-12 246 1,900,510 23-07-12 241.3 1,128,749 24-07-12 244.2 840,675 25-07-12 240.5 794,812 26-07-12 248.4 605,534 27-07-12 257.8 1,507,749 30-07-12 260.7 811,266 31-07-12 252.7 988,133 01-08-12 258 983,958 02-08-12 250.3 1,019,967 03-08-12 264.7 1,021,394 06-08-12 265.9 584,213 07-08-12 267.8 484,623 08-08-12 267.6 497,329 09-08-12 271.1 803,741 10-08-12 270.8 775,938 13-08-12 267.3 439,862 14-08-12 267.5 600,608 15-08-12 267 592,737 16-08-12 267.3 763,853 17-08-12 269.6 508,320 20-08-12 267.1 1,031,738 21-08-12 272.3 1,016,764 22-08-12 270.2 767,996 23-08-12 274.3 755,803 24-08-12 278.8 902,811 28-08-12 273.2 1,106,862 29-08-12 278.9 1,017,253 30-08-12 276.3 895,052 31-08-12 283.4 1,502,119 03-09-12 282.5 1,472,800 04-09-12 315.9 4,854,817 05-09-12 320.3 1,991,911 06-09-12 330 1,413,709 07-09-12 331.8 1,561,599 10-09-12 332.7 932,645 11-09-12 330 1,613,440 12-09-12 331 1,027,269 13-09-12 330.6 859,735 14-09-12 334.8 2,093,810 17-09-12 333.3 715,366 18-09-12 325.3 1,127,222 19-09-12 328.3 1,590,227 20-09-12 338.8 1,707,237 21-09-12 340.4 2,030,826 24-09-12 337.4 1,032,880 25-09-12 336 834,339 26-09-12 324.6 1,658,031 27-09-12 322.9 1,309,926 28-09-12 323.8 925,580 01-10-12 334.5 1,098,393 02-10-12 336.1 1,030,495 03-10-12 337.7 462,799 04-10-12 343.7 742,436 05-10-12 345.6 1,205,057 08-10-12 348 494,677 09-10-12 348.1 1,092,083 10-10-12 344.9 1,170,651 11-10-12 349 771,126 12-10-12 342.6 1,580,995 15-10-12 344 1,029,329 16-10-12 345.5 1,088,322 17-10-12 356.4 3,158,260 18-10-12 358.4 994,201 19-10-12 356 637,114 22-10-12 353.5 501,716 23-10-12 351 1,091,777 24-10-12 350.2 966,513 25-10-12 362.5 1,331,843 26-10-12 356.4 1,092,797 29-10-12 358.4 739,747 30-10-12 364.6 605,881 31-10-12 373 2,751,450 01-11-12 378 1,135,827 02-11-12 379.2 760,115 05-11-12 384.3 926,729 06-11-12 388.3 1,296,771 07-11-12 383.3 1,215,757 08-11-12 387.5 1,126,210 09-11-12 382.1 1,230,816 12-11-12 381.2 775,757 13-11-12 380.5 1,008,887 14-11-12 376.8 978,722 15-11-12 373.2 670,821 16-11-12 378.3 1,347,688 19-11-12 384.4 530,838 20-11-12 391.3 921,931 21-11-12 392.7 553,024 22-11-12 389.6 605,005 23-11-12 390 584,838 26-11-12 383.9 1,174,126 27-11-12 380.6 1,257,605 28-11-12 378.3 907,158 29-11-12 378.5 1,009,330 30-11-12 383.2 772,199 03-12-12 385 907,569 04-12-12 384.6 900,935 05-12-12 380.9 823,904 06-12-12 381.5 1,033,195 07-12-12 383.4 1,125,321 10-12-12 390.5 1,319,819 11-12-12 389.7 4,177,799 12-12-12 391 2,355,988 13-12-12 398.5 2,792,820 14-12-12 408.6 1,231,991 17-12-12 412 1,045,460 18-12-12 425.4 1,986,180 19-12-12 436.6 2,725,868 20-12-12 434.8 1,334,356 21-12-12 427 1,707,922 24-12-12 434 185,415 27-12-12 431.3 675,256 28-12-12 424.9 399,439 31-12-12 426.3 535,948 02-01-13 445.2 1,176,864 03-01-13 436.8 939,771 04-01-13 435.7 1,7 49,810 This essay on Ashtead was written and submitted by user Callum Dejesus to help you with your own studies. 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construction project observations essays

construction project observations essays After several months of planning and design, excavation for the new ACES library on the University of Illinois campus began in May 1999. The project is sponsored and will be owned by the Board of Trustees for the University of Illinois. Six separate contractors are working together under one general contractor. The project, which began in May of 1999, is scheduled to be completed by February 2001. Through informal interviews with Charles O. Pickar we learned that the project is 4-5 weeks behind schedule. Pending weather conditions 25 to 35 workers usually present on site. The typical workday can run between 6:30am and depending on deadlines can last until 9-10pm. As of the third week in January 2000, the concrete foundation and the steel framework for the five-story structure, with the exception of the roof, were intact. The appendix of this report contains photographs of observed procedures and site materials. On the morning of January 27, two massive 18-wheel trucks carrying various shapes and sizes of steel beams were unloaded on site. It took almost two hours to unload each truck. A crane approximately 200 ft. high was used to move the steel from the truck onto wooden planks on the ground. The steel was separated by shape, and by using the quite large reaching span of the crane, the workers were able to deliver the beams directly from the truck to their appropriate sides of the site. This operation involved a six-man crew. Two men connected the hooks from the crane onto the steel. Two men guided the steel onto the planks on the ground. Two men took turns operating the crane. This process was very time consuming due to the amount of steel needed to be lifted entirely over the five story structure to the other side of the site, and due to what seemed to be a lack of experience of the rigging crew. It took them a very long time to make the connections on each beam, and check for security. These factors may have influen...

Argumentative on the Existence of God Essay Example | Topics and Well Written Essays - 1250 words

Argumentative on the Existence of God - Essay Example Religions across the world embrace the tradition of worshipping a supreme power, which people know as God. The concept of a supreme power is popularly known as God, and this power is perceived to be omnipotent, omnipresent and omniscient. Different religions worship different deities, attributing different qualities and traits to each. However, the educated elite in Europe subsequently came up with the idea of rationalism, which upheld a view that no such power existed and challenged the concept of God. However, the people who argue against the existence of God has never been able to provide any substantial evidence to disprove it. Thus, it transpires that those who merely refute the existence of God simply wants to stake a claim without actually dwelling on the philosophy of effect of the belief in God on humans. The existence of God has been the first doctrine of the Theo-philanthropists. They considered Bible as the universal philosophy of God and they claimed that the messages in Bible are those of God. Thus, the belief in the existence of God dates back to earlier ages in the history of mankind. People worshipped God in different religious institutions such as churches, mosques, temples and so on. When a study on the emergence of the universe and the whole system of creation arises one must surely be aware of the fact there are a million concepts for which no proof exists about their founder. In philosophy, especially in the natural philosophy, it God is considered as a divine entity. Through the development of science, the belief of God’s existence is challenged but no one can disregard the existence of a supreme power. Discussion: From the early stages of evolution, humans have harbored the faith in a superpower. Primitive humans worshipped natural forces such as water, fire, an d wind. Subsequently, as human civilization evolved, they began to worship God in the name of various religious faiths It becomes relevant here that all religions and the resultant faith in God, intends the good of humans. The belief in God, without doubt, instills confidence in humans and encourages them to follow certain ethical and moral values. Thus, humans gain a certain level of spirituality by believing in God. Basically, the concept of God relies on the premise that God is a benevolent being that guides humans to the path of kindness, love, and compassion. Thus, if faith can bring positive outcomes in humans, such results in them constitute the God. Therefore, it can be construed that the presence of God is evidenced by the good traits in humans. However, with the emergence of science, the existence of God has been challenged and the issue became a controversy. Many characteristics have been attributed to God and it transpires that God is a positive and benevolent power. All the religions in the world have developed through the concept of God. However, some people take the concept of God as a mere thing, but it is a universal truth that there exists a supreme power. The existence of the universe and various mysteries in it rather tend to validate the theory that God exists. There have been philosophers in the ancient periods who were great thinkers also. They believed that there is a supreme power. Philosophers such as John Locke, Nyaya, Plato, Zhuangzi, Descartes, Nagarjuna, Ganges, Thomas Reid, Edmund Burke, and Sextets Empiricus have postulated various theories about God. Of these philosophers, most support the theory of the existence of God. Plato developed the theory of Republic, emphasizes the existence of God. He also argues that God is intangible. â€Å"In Republic, Plato’s point is not to establish an idea of God, but instead to determine what is right, good, just, and true; however, in his journey, Plato has implicitly brought forward a vague, abstract notion of God† (Plato’s Philosophy in Republic Implies a Concept of God p.1).

Legal brief (Kentucky v. King, 563 U.S. ___ (2011) ) Assignment

Legal brief (Kentucky v. King, 563 U.S. ___ (2011) ) - Assignment Example denied the accused’s indication to suppress the evidence; reason being that exigent circumstances (the need to prevent the elimination of evidence) vindicated the warrantless entrance. The respondent reserved his right to appeal the decision by a lower court. The Court of Appeal of Kentucky affirmed the decision of the Circuit court, but the Supreme Court reversed the decision. Procedural History of the case: the King moved to court and filed an appeal to reverse the decision of the Circuit court which was affirmed by the Kentucky court of Appeals, which had come to a finding that the officers had a reasonable basis to investigate the marijuana odor and that they properly carried out the investigation by firstly knocking on the door of the apartment and anticipating a response .The court also held that the exigent circumstances vindicated the warrantless entry since there was no response from the apartment when the officers knocked and one officer heard movement in the apartment which he thought were people trying to destroy evidence. The respondent was sentenced for 11 years imprisonment. The respondent reserved his right to appeal the decision by a lower court. The Court of Appeal of Kentucky affirmed the decision of the Circuit court, but the Supreme Court reversed the decision. Holding and reasoning of the case: The court held the opinion that the police should have foreseen that their action would have impelled the occupants to purge the evidence. The court determined that the exigent circumstances rule did not apply in this case. The exigent circumstances rule usually applies in circumstances when police fail to create the exigency by engaging themselves in the conduct violating the Fourth Amendment. This amendment (fourth amendment) brings about requirements: all searches and seizure ought to be sensible and the scope of the search should be well set out and a warrant may not be issued unless a justifiable cause is established. The presumption

Impact of the war on terror on Rules of Evidence Essay

Impact of the war on terror on Rules of Evidence - Essay Example However the alteration of the U.S. security system after 9/11 and various fresh national security agendas have produced extensive anxiety over the safeguard of international human rights, democratic standards, and several rights preserved in the U.S. Constitution that outline the civil liberties of the American citizens. Since the United States has not experienced any more attack on U.S. soil, which shows the efficiency of different U.S. counterterrorism efforts. But the 9/11 terrorist attack led the U.S. administration to review several existing laws and strategies and to make fresh ones, mistakes and exceeding the limit associated with these labors added grave erosion of faith in U.S. guiding principles and direction. In foreign countries, exposures of extrajudicial apprehensions and detainee mistreatment have damaged U.S. status and sincerity. Further it hindered counterterrorism collaboration with allies, and endowed with provocative misinformation that helps terrorist radicalization. Internally, policy deviations over security and civil liberties have been recurrent, extensively revealed, and sensitively charged, creating a situation of animosity and doubt that has confronted the people’s faith in the administration, caused division among supporters, and destabilized collaboration among the political branches of government. (Prieto, 2009). Criminal laws of US normally focus on dealing with criminal actions that have already happened, and are less effective in attaining the counterterrorism aim of preventing future attack. Criminal laws face a lot of disputes in tackling the terrorist threat. Even after a person is detained, a number of challenges face a successful criminal trial. Before 9/11, criminal trials relied on involving the defendant to a specific violent act or a plot to perform such an attack. The admissibility of evidence causes an additional challenge. Information that may be suitable in an intelligence framework may fail to suit the

Anonymity in Theories of Crowd Behaviour

Anonymity in Theories of Crowd Behaviour Darrin Paul Explain the place of anonymity in theories of crowd behaviour. Is it always associated with a ‘loss of self’ (Dixon and Manhendran, 2012) Social psychology provides much information with regards to collective behaviour and the interaction of individuals within a crowd. It has been observed that an individual’s behaviour can be influenced and therefore altered when they become part of a large group or crowd. Dixon and Manhendran (2012, p.3) ‘state that anonymity shapes crowd behaviour’; to evaluate the effect of anonymity on collective behaviour, psychological and social processes need to be examined. Dose anonymity render individuals powerless to control their actions, resulting in primitive regressive behaviour as proposed by Le Bon (1895). Or is a loss of self, were crowd participants cease to identify themselves as individuals a factor of anonymity. Other theories such as social identity theory address the issue of identity and how people perceive themselves and others in a crowd, what they conform to and how they express their identity. Does anonymity within crowds inevitably lead to aggressive or antisocial behaviour or does it influence identity salience and group norms as well as strategic factors and power relations (Dixon and Mahendran, 2012)? Early research regarding collective behaviour of groups was proposed by Le Bon, he developed his theory of crowds in the latter years of the nineteenth century. Le Bon was of the opinion, that when people joined large relatively unstructured social groups, they engaged in spontaneous and atypical regressive behaviour. Le Bon proposed that crowds are ruled by a collective mind or ‘group mind’ were individual rationality is lost to a hypnotic state in which group members experience unconscious primitive instincts devoid of reason and culture. Due to an unconscious process known as contagion individuals become influenced by ideas, feelings and emotions generated within the crowd, which spreads rapidly throughout creating a collective mass, leading to a ‘loss of self’. The physical presence of others creates a sense of anonymity were the individual can feel masked, diminishing their sense of responsibility from social and moral norms, thus generating a sense of unaccountable power form their presence within the crowd. Freedman and Perlick (1979) studied the effects of laughter on crowds; they showed that mood and behaviour are likely to spread through the group via contagion (Dixon and Manhendran, 2012). Deindividuation theory proposed by Festinger, Pepitone and Newcomb (1952) is a translation of Le Bon’s theory. They defined clear antecedent variables such as anonymity and group immersion that lead to subjective changes in the individual. Deindividuation is defined as a loss of personal identity or loss of self were crowd members merge and become anonymous, rather than separate distinct individuals. This leads to weak constraints against impulsive behaviour and hence an inability to monitor or regulate the immediate demands of the group. Deindividuation theory differs from Le Bon, in that it challenges the concept of a group mind, it dose not propose that group members lose their mind to the collective mind, instead it’s the loss of self that effects the social context leading to a loss of control. The effect of anonymity releases the individual from internal moral restraints, generating behaviour that is impulsive, irrational and regressive (Dixon and Mahendran, 2012, p.6). Festinger et al found that males in a group, who remembered the least amount of information that was individuating, were more likely to show hostile, aggressive behaviour towards their parents (Dixon and Manhendran, 2012). Zimbardo (1969) further developed deinviduation theory, especially in relation to the association between anonymity and aggression. He believed that crowds provide a cloak of anonymity which diffuses personal responsibility for the consequences of an individuals actions. A loss of individual identity produces a reduced concern for social evaluation. Zimbardo carried out a study to support his theory; he dressed up some of his subjects in overalls and hoods and left the others in their own clothes with large name tags so they could be identified. The results appeared to support his theory, when asked to administer electric shocks in a, learning experiment, participants who had been deindividuated in hoods and overalls, gave shocks for longer periods, suggesting that anonymity had intensified aggression.Recent studies would also support Zimbardo’s findings; Silke (2003) found that statistics of paramilitary attacks in Northern Ireland showed that the severity of attacks increase d with high levels of anonymity when the perpetrators were disguised (Dixon and Mahendran, 2012). However other studies have shown that anonymity does not necessarily lead to acts of aggression or anti-social behaviour. Gergen, Gergen and Barton (1973) observed strangers in mixed gender groups in well or dimly lit rooms. Their observations revealed that participants engaged in acts of physical and emotional intimacy which created feelings of sexual arousal. It would indicate that the social context of a group can produce cues that influence whether anonymity produces negative behaviour. In relation to Gergen et al’s results, Johnson and Downing (1979) replicated Zimbardos 1969 experiment giving half the subjects Ku-Klux-Klan outfits and half a nurses outfit, were each group was either anonymous or not. Results showed that participants in the anonymous nurse condition reduced the amount of shocks given compared to those in the other conditions. Zimbardo also replicated his experiment with Belgian soldiers and found that the anonymous group shocked less, the exact opposite to his previous results. These results would suggest that aggressive, anti-normative behaviour, is not always the outcome and that deindividuation may involve a desire to conform to situational group norms rather than a disregard for social regulation (Dixon and Mahendran, 2012). Diener (1980) observed there was a problem in expressing the relationship between deindividuation and anonymity. He proposed that anonymity does not directly lead to deindividuation and a loss of self, but a loss of self awareness. The ability to remain self focused increases the ability for self regulation and individuation, he believed that the above studies made participants become more self-aware and therefore less likely to engage in aggressive behaviour. As with most theories deindividuation has been open to criticism regarding it’s mostly lab based studies that don’t allow more naturalistic studies to increase ecological validity, taking into consideration the insider viewpoint of participant meaning and purpose. The over emphasis of aggressive anti-normative behaviour ignores the positive normative outcomes of crowds and that social norms from the immediate environment, can be the basis of controlled, meaningful behaviour (Dixon and Mahendran, 2012). Social identity theory adopts the concept of social identification, individuals identify with the social identity of the crowd and conform to normative group behaviour through conformity of shared group norms. The theory states that during crowd membership and other deindividuating settings, ‘the individual does not simply experience a loss of self, but makes the transition from an individual identity to a more collective sense of self’ (Dixon and Mahendran, p. 13). This shift in the sense of self is a key difference when compared to deindividuation theory. Unlike Le Bon’s concept of contagion, individuals through inductive categorisation respond to cues from group representatives that define the beliefs, attitudes and objectives of the group, resulting in behaviour that is regulated by social standards. Individual identification of intergroup relations, also effects to what extent an individual will conform to the emergent, spontaneous and normative cues of the g roup (Dixon and Mahendran, 2012). Reicher (1984) adopted an internal crowd perspective by examining testimonies of the St. Pauls riots which occurred in Bristol in1980 and found that black and white youths identified with one another due to police and social injustices, creating a collective social identity which created an intergroup struggle against authority. In Reicher and Stott’s (2011) study of the 2011 London anti police riots, observed that participants were not seen as anonymous, but part of a community that knew one another. They argue that ‘rioters did not experience a loss of identity or self but rather a shift to a collective shared identity which gave their actions purpose and meaning’ (as cited in Dixon and Mahendran, 2012, p.19). They also point out that violence was not indiscriminate but targeted at police and symbols of authority (Dixon and Mahendran, 2012). Stott (2012) points out in his audio interview that the ability of crowds to express their identity is very important, especially when that ability is suppressed by police. He points out that dialogue and engagement are vital aspects of communication that are essential in creating perceptions of legitimacy in policing. This brings into consideration the influence of power relations on crowd behaviour, Holloway (1012) states that ‘it is a two way dynamic rather than something exercised by the powerful on the powerless’ (p. 47). Social identity theory outlines that manipulation of anonymity affects the power that the in-group has in expressing aspects of group norms that are deemed anti-normative by the out group, in this case the police (Dixon and Mahendran, 2012). There has been a significant amount of research and studies carried out into collective crowd behaviour; resulting in evidence that membership of a crowd alters human behaviour and the psychological state of an individual. Although Le Bon’s work lacks empirical evidence it was hugely influential on crowd behaviour and the role of anonymity in understanding the psychological dynamics of crowds. But as Reicher points out he exaggerates the violent and irrational nature of crowds. Deindividuation theorists can show evidence for loss of self and the relationship between anonymity and increased intensity of aggression, however as Deiner (1980) and Prentice-Dunne and Rogers show, deindividuation does not necessarily lead to a loss of self and anti-normative behaviour. Social identity theory provides evidence of the role of social identity in collective crowd actions that express group norms, but does not see the role of anonymity as a negative aspect of crowd relations. It would app ear that further research is required to develop a more comprehensive theoretical model than can explain the relation between anonymity, and identity in group relations. Word count: 1625 References: Dixon, J., Mahendran, k. (2012). Crowds In Hollway, W., Lucey, H., Phoenix, A., and Lewis, G. (eds). Social Psychology Matters (p.1-22). Milton Keynes: The Open University. Stott, C. (2012). Assessment of the 2011 riots. Milton Keynes: The Open University.