Executing Strategies in a Global Environment Essay Example for Free

Executing Strategies in a Global Environment Essay Abstract This paper will analyze Federal Express’s value creation frontier, and determine which of the four building blocks of competitive advantage the company needs in order to continue their above average profitability. It will also explore the main aspect of product differentiations and capacity control of the company to maintain an edge on their rivals. Furthermore, for this assignment I will attempt examine the efficiency of FedEx’s current business model and recommend a new business level strategy that will give Federal Express a competitive advantage over it rivals. In addition, this paper will also examine the manner in which overall, global competition may influence my recommended business strategy and I will suggest a significant way that Federal Express can confront its global competition. Introduction Federal Express began operating in 1973, under the leadership of Fred Smith Jr. Before Federal Express, a major portion for small packaging airfreight flew on commercial passenger flights. Fred Smith believed that these two services should be treated differently, because the commercial passenger and cargo shipper had different needs. The commercial passenger they wanted the convenience of daytime flights. As for the cargo shippers, they preferred night services, which would afford them late afternoon pickups and next day delivery (Hill,2013). Since small-package airfreight only went out based on the commercial flight scheduling, it was hard for cargo shippers to achieve next day delivery. To remedy the shipping issue cargo shippers had Smith aimed to build a system that could achieve next day delivery of small package airfreight (Hill,2013). Today Federal Express has grown from a express delivery company to a global logistic and supply chain management company (Crane, et al., 2003). Over the years Federal Express was able to grow through acquistions and large investmenst in information technoloy. The company was also able to stand out from the rest best on their business model operate independently, compete collectively. Smith segmented his compnay into 6 different  component – FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services, which allowed each component to focus on their own maket segment. By segmenting of each component it provided Federal express the oppurtunity to focus more on customer. Even though Federal Express 6 different components operated seperatley the competed together under FedEx Corporation. Federal Express’s Value Creation Frontier and Their Four Building Blocks of Competitive Advantage Federal Express profitability depends on three factors: The value a customer places on t heir services, the price Federal Express charges for their services, and the cost Federal Express has to incur to produce the services they provide (Hll Jones, 2013). The more favorable these factors are the more value is bestowed on Federal Express’s product. To accurately value, a company’s product management must distinguish the difference between utility and price (Hill Jones, 2013). Utility is the customer’s satisfaction or happiness with using or owning a company’s product or services. Federal Express has stepped up to the plate by making shipping easier and convenient for their customer. Today we can find drop off boxes in front of office buildings and small neighborhood shipping stores. Having drop off boxes offers the customer anytime drop offs and no waiting time. Federal Express has also invested heavily in innovation to add to the customer’s experience (Crane, et al., 2003). The option of wireless technology and the ability to track deliveries and schedule picks on the company’s website provides the customer shipping right at their fingertips. For their global customer Federal Express can offer shipping option to more than two hundred companies. The prices Federal Express set for their services are higher than many of their competitors. Federal Express pricing is considered a premium, which reflects the high quality level of service FedEx provides (Crane, et al., 2003). Based on FedEx stance, their premium pricing is worth it, but they fail to realize their very price sensitive customer who may go with a more cheaper option for certain services (UPS). In this case it make it difficult for Fedex to standout based on branding and the amenties they offer. They may have to think of a different way to differeinate themselves from the competitior. Since Federal Express’s growth and customer, satisfaction comes with a high price tag. Their return on invested capital (ROIC) is very low compared to its biggest competitor UPS. In 2011, FedEx ROIC was 7.41% and UPS was 19.39%  (Hill, 2013). Some say in time the money FedEx spent to build up their company, technology infrastructure, and customer satisfaction may soon pay off. The other positive side is that FedEx spending and acquisition expenses have made it hard for new companies to enter and compete in the packaging industry Along with value creation, a company must excel in the four building block of competitive advantage efficiency, quality, innovation, and customer responsiveness. How well a company performs in these four areas will determine their profitability and competitive advantage over the competitor. These four generic building blocks are a product of a company’s distinctive competencies, which will allow a company to differentiate its product and lower its cost structure (Hill Jones, 2013). In turn, sustain a competitive advantage and better profitability outcomes over their competitor. When determining a company’s efficiency we can look at what it takes (inputs) to produce a product or services (outputs). According to Hill and Jones, the more efficient a company is the fewer inputs it required to produce a particular output. The most common way to measure a company’s efficiency is through employee productivity – the out pout produced per employee (Hill Jones, 2013). When examining FedEx efficiency they were the first packaging company to invest in technology that enabled their employees to access company information wireless 24 hours a day. This wireless feature also allows the employee to collect packaging data, which allows employees to quickly enter packages into the company’s package tracking system, which reduces the possibility of error (Crane, et al., 2003). As for FedEx service, they can be review by its features, performance, durability, reliability, style, and design (Hill Jones, 2013). These features are used by customers to determine the quality level of the services that are offered by FedEx. Based on FedEx’s history, spending to build its infrastructure, and premium pricing FedEx is committed to providing a service of high quality standings. FedEx has also invested heavily in new technologies, which will improve their services, make it more reliable, and valuable to its customers (Amsler, Cullen, Erdmenger, 2010). An example that show FedEx is all about quality is their technology efforts such as tracking deliveries on their website, and offering convenient shipping at the customer’s fingertips. As mentioned before FedEx is all about innovation. They are into creating new services  and processes to make shipping easy and convenient for their customers. One of their major investments is the joint venture with University of Memphis. University of Memphis and FedEx have joined and formed the FedEx Institute of Technology. This investment will ensure that FedEx will not be let in dark when it comes to new technology (Crane, et al., 2003). When it comes to customer satisfaction FedEx tries to identify their customer needs. FedEx heard the customers demanded for a more convenient way of shipping. FedEx has extended drop off times by three hours, offer drop off boxes, and the ability for customer to schedule pickups on FedEx’s website. The only dissatisfaction is the premium pricing set on their services. FedEx fail to adhere to the demands of their cost sensitive customers. These are the customers who only care about inexpensive delivery services. This group of people may use FedEx as a last resort for their shipping needs. Product Differentiation The idea behind product differentiation is creating a product that satisfies the customers’ needs (Hill Jones, 2013). In order for a company to obtain a competitive advantage they must offer a product that better satistfies the customer’s need than its rival. When a company creates a stratergy that involves innovation, execellence, quality, and customer responsiveness they are offering custumers differentiation product. When the a company’s stratergy is about finding ways to increase efficiency and reliablity to reduce cost they are offering the customer low priced product (Hill Jones,2013). In the case of Federal Express their stratergy is not about offering a low priced product, but offering a product that is innovative, meets a high standard of execellence, high quality, and basing the product on the customer’s need. Federal Express understood the importance of differentiation. Since their strategy is not based on offering a low costing product Federal Express had to focus on information technology. Today customers are interested in monitoring their shipments, estimating arrival times, price and cost of shipments. These elements are important to most businesses and consumers as well as the safety of their delivery (Crane, et al., 2003). To satisfy the needs of their customers and to stand out from their competitor FedEx has  invested heavily in the technology infrastructure, which provides options for customers to track and validate shipments at their personal computer. Federal Express works hard to create a high quality level of service that is difficult for their rival to match (Crane, et al., 2003). Over the years, FedEx has been known as an innovator in the shipping sector, and providing a high level of quality services. Due to FedEx’s higher prices the level of service they provide may become unnoticed. To differentiate their standard of quality from their competitor FedEx lets their customers know that if they are willing to pay more it will be worth it (Crane, et al., 2003). Capacity Control With technology, forecasting, and planning strategies Federal Express is able to handle the fluctuating demand in shipping. With General Information Science (GIS) Federal Express is able to build routes for the driver, guide sorting activities of inbound freight, estimate and record delivery times. This information is stored on a cloud, which is use for future planning and test the durability of a route to accommodate package volume fluctuation (Conger, Dezemplen, Haas, McLeod, 2010). Efficiency of Federal Express’s Current Business Model Federal Express’s current business model is to â€Å"operate independently, compete collectively.† Currently Federal Express is under the leadership of FedEx Corporation. FedEx Corporations provides strategic direction and financial reporting for the following operating companies that compete collectively, but operate separately worldwide: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services (Amsler, Cullen, Erdmenger, 2010). The idea behind â€Å"Operate independently, compete collectively† is that each company will operate independently, compete collectively and manage collaboratively. By operating independently, each of the organizational components (FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services) can focus solely on their market segment. Also by segmenting off each component by its own market segment has provided FedEx the competitive advantage in customer responsiveness and has limited wasted time and resources on problem that are not associated with each market (Amsler,  Cullen, Erdmenger, 2010). The benefit of all the organizational component competing collectively is carrying and competing under a well know name – FedEx, which is one of the most recognized names in the industry (Smith, 2005). Even though â€Å"operate independently, compete collectively† has worked for Federal Express thus far, but keep in mind it only provided FedEx with a competitive edge in specific customer focus. To gain a stronger competitive advantage FedEx should add cost leadership to their business level strategy. Cost leadership is a business model strategy that works towards lowering a company’s cost structure so they can make and sell their products at a lower price than its competitors (Hill Jones, 2013). This has been difficult for FedEx, because of their constant expenditures in their infrastructure (Amsler, Cullen, Erdmenger, 2010). Due to FedEx costly expenditures, they are unable to compete with their biggest rival, UPS in setting prices. Global Competition and the Impact on Suggested Business Strategy Based on the international shipping demand among integrated global corporations and manufactures it will be FedEx’s as well as its competitors best interest to enter into the global shipping industry. Global manufactures are interested in keeping their inventory at a minimum and have just in time delivery option. This way global manufactures can keep cost down, fine-tune their production, and meet delivery deadlines (Hill, 2013) . As for global corporation their shipping need are different. They are in need of fast and a safe way to ship document that are to confidential for internet transmisson or require a real signiture. These global coroporation are seeking for the same shipping services the receive in the U.S for their global operations (Hill, 2013). According to Case 7: â€Å"The Evolution of the Small Package Express Delivery Industry, 1973 -2010† the trend for global shipping need is forcasted to grow approxiamently 18% annually from 1996 to 2016. This means there is a big demand for air cargo operators to build global shipping networks that will allow them to provide shipping services across the globe with in a 48 hour time frame. Through acquistion Federal Express was able to build a global shipping network to meet the demand among intergrated global corporations and manufactures. The acquisition expenses, international start cost, customs regulation cost , labor issue associated with global shipping, and the barries to attaining landing right in many markets prevented FedEx to  include cost leadership in their global busines stratergy. Eventhough FedEx does not have the competitive edge when it come to pricing they are t more visible in the global shipping industry than their competitors. They can offer services and shipping time frames their rivals can not offer. FedEx also has shipping hubs all over the world, which include 600 or so air crafts , which allows them to provide shipping option most of their comepitives can not offer. Based on history this was very difficult for other companies to establish this task. Since very few competitor have the same golobal infrastructure as FedEx global companies relay more FedEx for the international shipping needs (Crane, et al., 2003) Conclusion In conclusion, Federal Express’s competitive advantage is not based on cost, but on its technology infrastructure. Over the years, Federal Express has spent heavily on technology and in acquisitions in order to offer delivery options and services their competitor cannot. The spending was geared towards satisfying the needs of the customer, innovation, offering a quality product and excellence services. The only negative side on spending heavily is that the cost was passed on to the customer, but Federal express stance is that they offer premium services and products. Federal Express can offer their international customers shorter delivery time, because of the major acquisition transactions Federal Express was involved in over the years. As for their domestic business, it may be a little difficult to stand out from their competitor. Currently the competitor (UPS) can offer similar services and convenient shipping options at a lower cost. References Amsler, M., Cullen, J., Erdmenger, J. C. (2010). Strategic Report for FedEx Corporation. Vector Strategy Group. Conger, R., Dezemplen, R., Haas, J., McLeod, J. (2010). Using GIS Strategic Planning and Execution at FedEx Express. Crane, B., Landthorn, B., Miri, B., Relph, J., Sanchez, C., Vernerova, A. (2003). FedEx Corpration: Strategic Management Project. Hill, C. L. (2013). Case 7: The Evolution of the Samll Package Express Delivery Industry, 1973-2010. In C. L. Hill, G. R. Jones, Strategic Management: An Integrated Approach (pp. C83-C96). Independence: Cengage. Hill, C. L., Jones, G. R. (2013). Strategic Management: An Integrated Approach (10th ed.). Independence: Cengage. Smith, F. W. (2005). FedEx. Retrieved from FedEx corporation annual report: http://www.fedex.com/us/investorrelations/financialinfo/2005annualreport/online/msg_chair.html

The withered arm Essay Example for Free

The withered arm Essay The opening of the story, among the milkmaids, is much more innocent in terms of the tension and terror than the plot turns out to be although tension is shown here because of the mystery. This is similar to many of Hardys other novels. Terror is mainly brought out in the end when everyone passes away except Rhoda who may be the most evil character in the plot. In most of Hardys short stories written he uses unexpected twists to create terror and tension. This may link to the sort of life style in those times. Rhoda wants her mysterious unnamed son to observe the new Mrs. Lodge as Farmer Lodge and Rhoda have had a certain relationship. At this point of the short story the reader is bought to ask what type of relationship they had; we gradually learn that they have had a son together. Gertrude Lodge is much prettier than Rhoda, therefore Rhoda wants to know what type of person she is and how she had been bought up. Rhoda does this by sending her son for the second time to inspect her hands to see if they were rough, if so that would mean she would have done some work before. If Gertrude did not work this would mean that she would have been raised from a rich family who employed people like Rhoda to do the work for them. You never told me what sort of hand she had, Tension is created by the fact that she is so inquisitive about Gertrude but she does not go and speak or see her personally. Tension is again also created because Farmer Lodge totally ignores and takes no notice of his own son even when he could see his son was in pain by carrying a heavy load. This shows the fact that he does not want Gertrude to know about the relationship. It may also be because in the time when the short story was written there was a palpable set of classes. If you were seen having a relationship with one of your social subordinates, especially a sexual relationship, you would be made an outcast from the particular social sector and your reputation would be ruined. At the beginning of the short story Gertrude cares for the boy being charitable towards him, she gives the unnamed boy boots and other useful articles. We presume that this is more than Farmer Lodge has ever done for the boy. The irony brings out tension also because the reader is scared that Gertrude might find out that the boy is her husbands son. The eerie setting of the story and where Rhoda lives primarily creates tension at first. The environment is isolated and desolate. We also see this as a similarity to the emerging character of Rhoda. The home she lives in is made with mud, which is usually associated with dirty and poor things. The surface had been washed into channels and depressions, the word depression had a double entendre; firstly being geographical term but secondly as gloominess. This creates a hidden sense of tension. The roof was also hatched; this looked like a bone protruding through the skin. This simile gives the reader a sense of apprehension as they can actually imagine this happen to their own body. The health is also a predominant feature in literature; this is usually associated with evil. The dream is the basis of the short story; tension is created as we are left with many unanswered questions. Firstly we are questioned about the reality of the dream. We are given many implications that it is, Gertrudes arm stared to hurt at the exact time when Rhodas spectral encounter. If this were true the reader would secondly be questioned whether the dream was a coincidence or if witchcraft had played a part. Tension is created by the fact that none of the questions are actually answered in the short story. Progressively we see the relationship between Rhoda and Gertrude become firmer. We see Rhoda give advice over what Gertrude should do over her increasingly withering arm. The reader now observes an immense form of dramatic irony because Gertrude asks Rhoda to go to the Conjuror with her. Rhoda, although hesitant of going with her because of her inconspicuous acts, agrees to Mrs. Lodge. Could you not go with me, to show the way? This also creates tension within the short story as the reader fears that Rhoda might get caught for the suspected misdemeanors she may have adversely done. At Conjurer Trendles home the first reaction that he had was that an enemy had been in Gertrudes life. Rhoda immediately goes away. This make the reader suspect more wrong doings by her and a sense of tension is created. When Rhoda went, Trendle bought out an egg and cracked it into a glass of water and told Gertrude to see what figure she saw. The response was inaudible to the reader so another sense of tension is created. Also when Gertrude came out of the conjurors house, she did not want to speak to Rhoda and said she cares not to speak, of what she saw. This enhances the tension because the reader gets a strong feeling that Rhoda is involved, and the question of her innocence is reduced in the readers mind. Rhoda leaves the farm straight after the incident; this creates even more tension about Rhodas innocence. We do not find out where she actually goes; we just presume she has left because she is guilty and does not want to be convicted of the crimes committed. In the short story we see a defiance of social principle. Gertrude, a rich upper class woman, is starting to mix with lower class people like Rhoda Brook, Trendle and a Hangman. Rhoda Brook is a very poor woman and is employed to do other peoples work, as she is a maid; this shows that she is lower than Gertrude as her husband has employed her. Conjurer Trendle is associated with potions and magic, which in those days is known as witchcraft. You would be placed in the bottom of society if you were slightly interrelated with it. This would be the same if you were to be associated with the hangman. Rhodas son is a key character in the opening of the short story but he is pushed aside in the middle and bought back in a major way creating an unanticipated twist to the text. He is unnamed in the story, which creates a slightly sinister atmosphere. (This is known as connotation). Terror is also shown when she is at Trendles house for the first time. When Trendle does the egg experimentation the reader is not told whom Gertrude thinks she sees. Therefore the reader presumes automatically that it was Rhoda who did it by witchcraft. The main point of terror is shown to the reader when Gertrude does not wish to talk to Rhoda about what he said. This is the main point where the text implies it was her. Gertrude also questions Rhoda about why it was her idea to visit Trendle; this also implies that Gertrude thinks Rhoda is her enemy. The whole incident brings terror to the story as the reader cannot predict what is going to happen next even after Rhoda has left Holmestoke. Gertrude visits Trendle for a second time; this time the main terror before the end is bought out. To heal her arm Gertrude has to touch the neck of a freshly hung person to turn the circulation of blood. At the beginning of the story Gertrude would never think of doing this but her character had changed, her light had been blown out because she is so desperate to get her husband, Farmer Lodge, back. This terror is not expected of her but she actually hopes someone get hanged soon for her own comfort. This is a fefinite change from the kind, giving Gertrude. Also she states that she wants to hang an innocent person increases the terror. O Lord hang some guilty or innocent person soon! The end of the short story has a twist like many of Hardys work. Terror is bought out just the second Gertrude is about to heal her arm. The scream of Rhoda with Farmer Lodge takes Gertrude into a shock turning the blood to far over, putting her in a coma. There is terror in all three angles. Firstly the fact that Gertrude is doing this horrible deed, secondly the fact that Rhodas son is the boy being hanged and thirdly Farmer Lodge is actually there with Rhoda. Gertrude obviously reacts to this because like everyone else except Rhoda she dies at the end of the ordeal. Tension is also created for Rhoda and Farmer Lodge as they may think that Gertrude may have been involved with the execution of their son. Also the fact that Rhoda refers to Satan when she sees Gertrude enhances the tension surrounding the mystery. The main question at the end of the story is who is the main source of evil during these times. The son cannot have been as he has not been allowed to be involved with the matter although he is used as a messenger at the beginning of the short story. Farmer Lodge does not seem to be interested in the matter of the involvement of Rhoda all he seems to care about is the beauty of his wife and his social status. This leaves us with the two main character, Rhoda and Gertrude. It could be either one of them Rhoda at the end admits to being involved with Satan. But this is not shown in form of action in the text so she could have just meant the dream at the start of the short story and said the involvement with Satan in the spur of the moment. This is the meaning of what Satan showed me. This also implies that Satan showed her that Gertrude is evil. Gertrude can also be seen as evil as she was the one who appeared in the dream in the first place. She could be involved with witchcraft because its She is the person who actually got hit down. Also the fact that she mixes with hangmen and Trendle show the fact she is going to the evil side of society. The reader does not know which one is the real source of evil even though Rhoda is the only one to exist this is left in suspense which creates tension. In conclusion tension and terror are seen in all chapters of the story; each one leaves a question unanswered so tension is easily created. The main section of terror and tension was the fact that everyone dies except Rhoda who carries on her life in the milk shed. The short story is ambiguous because nothing is definite and the reader must use their imagination to predict the future in each part of the story. This is the basis of tension and terror throughout the short story.

Benefits of the International Reporting Standards

Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc Benefits of the International Reporting Standards Benefits of the International Reporting Standards 2. 0 Literature review 2.1 Introduction Literature abounds in polarising this subject matter the benefits of the international reporting standards. Looking back at the last quarter of the 20th century it will no longer be seen as an evolutionary period global financial market in a bit to introduce a single set of standards that will be generally acceptable in financial reporting. International reporting standards have revolutionized the domestic accounting system to a more capital oriented system (Hope et al, d Archy 2001). Lantto (2007) states that the information provided by the IFRS is more reliable and relevant. Darke and Deske (2006) highlights that the disclosure quality has increased tremendously since the adoption of the IFRS. Furthermore, Ding et al (2006) states that the adoption of the IFRS has made a great impact in bridging the differences in the use of the domestic standards among the countries. In justifying the theories, there are opinions as well as oppositions on the advantages of the international reporting standards. What becomes evident although arguably is that the movement from the domestic standard of reporting to the international standard of reporting is of great benefit to financial reporting to the shareholders, firms ,organizations and also global economy as it will place the whole countries in the same reporting field. This chapter will review this report from the historical background of the international financial reporting standards, the Implementation and enforcement then to the benefits of the adoption of this standard. 2.2 Financial Reporting. In the beginning financial reporting can hardly be called external (Alexander, Britton and Jorissen, 2003: 22) rather it was a way by which the owners were informed on their income and capital. This is because the owners and managers of the company were not separated. Until in the 1800s when they started encountering the agency problems it becomes evident to separate ownership (management) from capital supply. Then external wreporting was introduced in order to provide information outside the borders of a specific country. Hence, financial reporting emanates from internal to external reporting. Financial reporting provides information to the users for making economic decisions (Iqbal 2002). Gilmore and Wilmot (1992) states that reporting has developed over time in a bid to stress the need for investment decision making and also to attract investors into the company. Hegarty (1997) opines that the range and varieties of this reporting regime is as a result of an evolution which shows the uniqueness in the economic, cultural and legal jurisdiction. As a part of the revolutionary process financial reporting has changed over time (Crowther 2000). The change is a result of a need for a good financial reporting system that will communicate real value an d risk to the users of the reports (Damant 2000) .Hence, the quality of a financial report is dependent on the reporting standards. 2.3 Why Standards? According to (Perks 1994,p.137),Accounting standards may be seen as the professions rules, which supplement companies Act requirements that are intended to restrict directors freedom of manovoevre and to ensure that the financial statements are presented on a more comparable, consistent and standard basis. Perks (1994) reporting standards is also important in order to prevent scandals, abuses, financial collapsing in the companies and creative accounting that may jeopardize the profession. Also, Elliot and Elliot (2008) highlight some reasons for standard this includes: Comparability: Financial statements should be able to allow users make predictions on future cash flows and also evaluate managements performance. Credibility: For financial information to disclose information that will give a true and fair view, uniformity is therefore essential. Influence: To be able to stimulate a development of the conceptual framework the process at which the standards are formulated should be able to give a constructive appraisal of the policies proposed for the individual financial reporting. Discipline: A mandatory standard is necessary as it structures a regulation that will be systematic and ongoing thereby enforcing a disciple in the financial markets for all organizations listed in the stock exchange. The usefulness of a reporting standard cannot be overemphasized although there are some arguments on this. Harvey and Keer (1983) argued that information produced using financial standards could be unreliable at times and the standards might be bureaucratic and inflexible. Also, there may be adverse allocative effects . Consequently, there might be consensus-seeking and standard overload . Lets take an illustration of a of two companies; Enron and Ahold to further explain why we need standards. Enron is the seventh largest US based company falling into bankruptcy as a result of an overstated profit of $500 million and the Ahold the third largest US grocer had their earnings overstated for the past two years by $500. 2.3 How National differences affects reporting. Given that the environment differ from country to country, the types of decisions to be taken and information needed in decision making differs from one country to another. Hence, accounting system is environment specific. (Iqbal 2002). Adhikari and Tondkar (1992) reported that financial accounting reporting and disclosure standards and practices do not develop in a vacuum but reflect the particular environment in which they are developed (p. 76). The culture of a country affects its method of accounting and financial reporting. For example, Gary (1988) in his books illustrated one of the ways by which cultural differences affects countries financial reporting; a country with a high uncertainty avoidance and low individualism will tend to be more conservative in their income measurement than in a country with low certainty avoidance and high individualism. Although the measures of cultural attributes may be indistinct and not direct in financial reporting compared with the other factors that affect financial reporting.Also, the nature of accounting regulations in a country is influenced by the general system of law applicable in that country. For example Jaggi and Low (2000), notes that companies in the common laws countries tends to have a high level of disclosures than countries in a codified Roman law system. La Porta et al. (1998) argues that common countries have investors with a strong legal protection than the Roman law countries do. Moreover, the differences in the types of business organization and ownership also affect financial reporting. Elliot and Elliot (2008) further explains this stating that in a country like the UK the business structure indicates a separation of the ownership and the management while in the French business the structure differentiates the ownership from the managers.. According to Nobes and Parker (1 998, p.21):The difference in the providers of finance (creditors/insiders) versus (equity/ outsiders) is the key cause of international differences in financial reporting. Although there is an increasing scale, companies firms had to find extra capital to finance growth. (Alexander, Britton and Jorrisen 2003). Roe (2003), further argues that political differences are the major cause of the differences in corporate structures in the developed western countries. Also the accountancy profession is another determinant of the differences in financial reporting. Nobes and Parker (2006:36) emphasizes that the strength, size, and competence of the accountancy profession in a country affect the type of financial reporting that will be obtained in that country. So with these differences the financial analyst cannot be able to make a headway there is therefore a need for a uniform reporting standards. 2.4 Why the call for international reporting standards Over the years it becomes apparent for an ever increasing worldwide competition. The globalization of the markets and companies increased as a result of the cross-border securities market listings and capital raising.. Thus, there was no cross-border investments, investors therefore prefer to invest in companies whereby there will are more comfortable with their system of accounting . 2.5 Background of the International Reporting Standards. Financial reporting standards for international applicability became prevalent in the 1970s. International Accounting Standards committee (IASC) was set up in the 1973 in order to standardize the reporting differences in international investment communities. The establishment of the International Accounting Standard committee is seen as a response to the call by the accounting profession for a greater co-ordination of accounting rules among the various nations of the world (Kraayenhof 1960).The need was expressed in the international congresses of Accountants held in September, 1972 in Sydney. Chetkovich (1979, p.13) emphasizes that at each of these congresses, there was a demand for a better communications and closer cooperation among accountants on a worldwide basis; and also for greater harmonization of accounting standards. This statement led to the establishment of the IASC on June 29, 1973. The objectives of IASC are: to formulate and publish in the public interest, international standards; also to promote their acceptance and observance world-wide, and to work generally for the improvement and harmonisation of regulations, accounting standards and procedures relating to the presentation of financial statements. (IASC, 1983, Preface to Statements of International Accounting Standards, p.1). This is the first step towards the achievement of a globally recognised standard .The members of the IASC accept that adopting of international accounting standards (IAS) will improve the quality of financial statements (IASC ,1995). How far did this go or were there criticisms to this standard? IASC helped in solving the problem of uniformity although the purpose of it enactment was far from being realised. One of the weaknesses is that the standard issued by IASC has many objectives thereby making it difficult to achieve the purpose of consistency in recognition, measurement and presentation of transactions (IASB section 4). The standard is also too broad and allowed the use of several alternative accounting treatments. Atiken and Wise (1984) emphasizes that the IASC gives more attention to the multinational companies and investors in the multinational businesses more than it emphasizes on the harmonization of all spheres of the organization globally. Therefore emphasizing that IAS C was set up for the harmonization of accounting on a worldwide basis in order to improve the financial reporting and decision-making capability of multinational businesses, and investors in multinational businesses.(p.176). The second criticism to the use of IASC is that of the mandate. The statement starts with the phrase to formulate and publish in the public interest international standards†¦. (IASC). Hence they act in the interest of the public by a way of enforcing the rules which may not be favourable to the public. This absence of democratic legitimacy has been the major reason by which the IASC standards have not been enforced. Besides , this the structure and the membership composition of the IASC lacked the requirements needed for a global standard setting organization which includes the independence of its members, technical expertise and the decision making bodies representatives. McKinnon and Janelle (1983, p.33) argued that IASC has only succeeded in codifying generally accepted practice, in serving as a neutral source of standards ,and in influencing groups with the enforcement powers. Consequently, the IASC was restructured from the year 1998 to 2000 to International Accounting Standards Board (IASB). IASB is an independent London-based standard accounting body privately funded. The first IFRS was issued in the year 2003 with a membership of 19 countries but it has tremendously grown to 70 countries now with the EU mandating that all listed companies should use the IFRS in their financial reporting effective from the year 2005 (EC,2002). IASB has two member bodies the standard setting board and the member board of trustees .The IASB establishment is allied to that of the international federation of Accountants worldwide (IFAC).. The International Accounting Standards Board is committed to developing, in the public interest, a single set of high quality, global accounting standards that require transparent and comparable information in general purpose financial statements in addition, the IASB co-operates with the national accounting standard-setters to achieve con vergence in accounting standards around the world. (IASB, 2002, p.1). IASB has taken corrective measures in removing the accounting alternatives thereby ensuring that firms give a report that will reflect a true position and economic performance of the firm. IASB also aims at promoting global consistency in application and enforcement. It has also met the requirement that the business which operates in multiple bodies have a uniform financial statement which will be understandable in the countries whereby they operate. 2.6 International Accounting Standard Board (IASB) versus FASB? Norwalk agreement in the year 2002 by the Financial accounting Standard Board (FASB) and the International Accounting Standards Board was signed by both bodies after the need for a high quality, consistent and a comparable information which will be applicable to both domestic and the cross border financial reporting was recognized. Jacob and Madu (2009, p.3) the cited that both FASB and the IASB has pledged to use their best efforts in making their existing financial reporting standards fully compatible as is practicable and to coordinate their future work programmes to ensure that once achieved compatibility is maintained. This was also confirmed in their meeting in October 2005 of the two bodies reaffirming their commitments to converge US GAAP to IFRS. In a Concept Release, the SEC(2000) notes, Establishing and maintaining high quality accounting standards are critical to the US approach to regulation of capital markets, which depends on providing high quality information to facilitate informed investment decisions. (Jacob and Madu 2009).SEC released a proposal on July 13 2007, which states that US should recognize financial statements prepared using the IFRS from the foreign private issuers without reconciling them back to GAAP [2].furthermore, SEC informs all the investors that IFRS is the only set of standards with a high quality accounting standards that is more informative, useful for preparing financial reports compared with the US GAAP. This recent move to IFRS suggest that ,IFRS is the only standard that is of high quality and globally recognized and also has a potential to improve comparability of the financial statements despite of the country whereby they are domiciled. Despite all these efforts to converge to IFRS some academic literature still opines this stating that there are still material differences between the IFRS and the US GAAP. More so, the information contained in reconciliation is evident in the investment decisions made by the US investors. for example ,Culter and Neidemeyer (2009) argues that the major challenge why US did not want to adopt the IFRS is that there are differences in regulation and the manner at which these rules are been interpreted. IFRS is principal based regulatory system; which means that the rules are already set. On the other hand US GAAP is ruled based, whereby a detailed guidelines and principles is already laid out. Delliot (2007) emphasized that the principle based rules focuses more on the objective not relying more on the detailed rules. Deming (2005,p.4) gives a conclusive report pointing out that IFRS has more of a common law approach, than the US GAAP which is more of a civil law approach Furthermore, in the number of standards, IFRS has forty nine sta ndards while and nineteen interpretations and this consist of an approximate of two hundred pages (Delliot 2009) while the US GAAP has twenty thousand page (Mitra 2009).Other notable differences are seen in the financial reporting using the US GAAP and the IFRS. This will be comprehensively reviewed in the subsequent chapter. 2.7 Implementation and Enforcement of Financial Reporting Standards The credibility of a standard relies on its smooth implementation by countries that adopts it. Enforcement is a difficult concept to quantify and measure (Nobes and Parker 2006). The enforcement process differs from one country to another. Even at the international level there is still no genuine enforcement process. Moreover, some accounting bodies set standards and leaves enforcement to other bodies while others do both. For example US Securities and Exchange Commission sets laws and enforces it while IASC, Accounting Standards board (ASB) sets and develops standards and do not have the power to enforce these standards For the set rule of IFRS to be achieved an enforcement body has to be set up with powers to enforce the standards (Lamfalussy, 2001; Committee of European Securities Regulators [CESR], 2003a). Nobes and Parker (2008) states that the most determining factor for a successful adoption of this standard as a global standard is in the approach taken by the financial regulating bodies in the countries that adopts it. Giner and Rees (2005), Brown and Tarca (2005 )and Ball(2006 ) affirms that the purpose of IFRS is to provide a high quality financial reporting which can only be achieved with vigorous enforcement by the regulatory bodies (Schipper 2005 and Ball et al. 2003.The enforcement has not been easy certain factor has affected the effective enforcement of the law. Some of them vary from the cost, regulators interest and whether the businesses or accountants really need them. Watts and Zimmerman (1986), opines that the value of regulation is an empirical question, more apprehensive of ho w the regulatory authorities can value the costs and benefits of regulation. For example in the EU countries the structure and the organization that is in charge of the oversight of the requirements in the financial reporting varies among the EU countries. Also some countries do not have institutional oversight of financial reporting (FEE, 2001a, p.10).The EU regulation therefore mandates that the member states are to take appropriate measures in order to ensure compliance with IFRS. (European Commission EC], 2002, n.16). As a result of this the need for a country to produce a multiple financial statements was eliminated. Lafferty (1981) noted that no enforcement mechanism ever existed in reality. Perks (1993), expressed in his opinion that, without a legal backing it is not easy for the reporting standards to be enforced. Enforcing of the accounting standards therefore may require statutory audit, an effective sanctions and monitoring by supervisory bodies and for it to be implemen ted. Thus, there will be continuous reformations and changes in these standards. IFRS AND EU The European Parliamentary on enacted a legislation 0n 14 March 2002 requiring all companies listed in the European stock exchange to publish their financial statements with in accordance with the International financial reporting standards. There is also an endorsement mechanism which ensures that IFRS meets the needs of the EU listed countries. 2.4 International Standardization, Harmonization and Uniformity. The move towards greater harmonization of professional accounting practices has been traced back 1904 and the first accounting congress in St Louis, Missouri (Samuels and Piper, 1985, p.59, Mueller, 1979, p.7). Samuels and Piper (1985 p.59) states that international issues were not important while Mueller (1979 p.7) states that there is a need to pay attention to International harmonization. Combarros (2000), also argues that there is a need for harmonization of the accounting. Harmonization and standardization are used synonymously by some authors (Tay and Parker, 1990). While other researchers has differentiated the two. Tay and Parker (1990, p.73) defined harmonization as a movement away from total diversity of practice and standardisation is seen as a process which involves a movement towards uniformity. Saudagaran (2001:32), futher emphasized that the rationale for harmonization is that it will enhance comparability of financial statements [therefore] making it easier to use acr oss countries While other proponents is of the school of thought that harmonization will is not be practicable or truly probable. Rudhede and Wahlberg (2003) emphasizes that the lack of accounting harmonization will give difficulties to the investors in understanding the accounting principles which varies among the countries. Walton. Moreover, harmonization is a way to put processes in place to be able to reduce the obstacles inherent in international comparability. Hulle (1993, p.73) stated that the objective of harmonization is the comparability of accounts. All the efforts of the EU towards harmonization of these accounting standards have been challenging and slow. 2.4.2 Merits of international harmonization. An argument in favour of international harmonization is, efficiency in trans-border transactions. (Walton, Haller, Raffournier, 1998, p.9). Although lack of uniformity in the reporting procedures and the comparability of the accounting information is another barrier to cross border investments. This comparability of the financial postions across national bodies is seen as one of the most important reason for harmonization (Cummins 1975). This will help to reduce lack of trust and non reliance on the financial statements. With this there will be a flow of international investment in the capital market. Turner (1983 p.58) in his studies affirms that the second advantage of harmonization is to consolidate divergent information when more than one set of report is required to comply with different national laws or practices; further stating that accounting diversity is the major cause why companies spend unnecessarily cost. According to Houston and Reinstein (2001), harmonization of the a ccounting standards will reduce the cost of business, more particularly across national borders, than it will contribute towards greater efficiency of the market regulations. Not only will that harmonization reduce the costs inherent in conducting financial statements analysis and investments in international context. Another advantage of international harmonization of the accounting standards is saving of resources (Muller 1961, Spacek 1971). Further arguments is that international harmonization of the accounting standards can advance capital market efficiency(Ramanna and Sletten 2009) while Ball et al., 2000; Ball Et al 2006 envisaged that if the international market does not go along with the associated capital market institutions can be expensive. Finally, harmonization of the international accounting standards will help in improving management decisions in the multinationals. (Hauworth 1973). 2.4.3 Demerits of international harmonization International harmonization if faced with some criticisms, Some of which are economic while others are political. One of the criticisms is that it cannot carter for a wide range of national circumstances, legal systems, stages of economic development, and cultural differences (Samuel and Piper, 1985, pp 100-109). Atiken and Islam refuted this stating that the nature of the economic transactions and the methods by which they are accounted for does not vary in essence. Walton, Haller, Raffournier, (1998) argued that harmonization distorts social balances that have not been tackled over a long period of time. In the readings of Blake and Hossain (1996) International harmonization of reporting standards especially IASC is less respectful of local particularities; in regards to this context options will be seen as to be bad ,methods are termed either good or bad and costly reconciliations is likely to be imposed. Kenny and Larson (1993) further argued that large professional organizations protect their selfish interest in the standard setting process. Also the absence of a strong professional accounting body is a major obstacle to harmonization of accounting standards. 2.10 Arguments for international reporting. The essence of international reporting standards is to give a universal reporting standard that will be comprehensive and transparent thereby improving investors confidence as well as also creating market integrity. (Hope et al., 2005; dArcy, 2001). In this section we looked at the benefits of international reporting standards to the investors, firms, and also to the global economy. Gordon (2008, p. 3) cited the speech of Levitt (1997) which stating that for international reporting standards to gain acceptance three key objectives must be in place: The standards should include a core set of accounting pronouncements that constitute a comprehensive, generally accepted basis of accounting. The standards must be of high quality – they must result in comparability and transparency and they must provide for full disclosure. The standards must be rigorously interpreted and applied. Financial Reporting quality and transparency under IFRS The question has been if the accounting figures reported under this standard will give of high quality compared to those under domestic standards?. Also will IFRS show transparency in disclosure for an informed decision for investment? Barth et al., (2007) states that this is an extremely intricate question to answer as the application of any given standard has exhibited the effects of the features of the financial reporting system, its standards, as well their interpretation, enforcement and litigation. As these affects the competence of the financial prepares and users. Tarca (2004) said that international accounting standards are one way of improving transparency in financial reporting. Ashbaugh and Pincus (2001) elaborate that since the adoption of IFRS there has been improvement in the forecast accuracy by the analyst. As a result of this analysts cost of information acquisition also reduces. Cuijpers and Buijink (2005) from his sample of firms domiciled in the European Union pr ovide evidence that the analyst following has increased. Also Barth et al (2003) and Barth et al (2007) reveal that higher value relevance for firms is higher since the adoption of the IFRS as compared with the pre adoption period. IFRS therefore reduces the estimation of risk in market returns. Hence we will say that the quality of the IFRS in financial reporting is therefore inestimable in countries that adopt IFRS than those that use the locally recognised standards. Although we have affirmed that IFRS is associated with a high accounting quality there may be oppositions to this. Firstly, where there is an intrinsic flexibility in the principles based standards; this may present opportunities for firms to manage their earning thereby reducing the accounting quality. Also, in a bit to limit the managerial discretion which relates to the accounting alternatives will also reduce the ability of the firm to report accounting measurements that will give a reflection of what the true po sition and economic performance of the company is. Thus, accounting regime affects the quality of the information thereby affecting the cost of capital. Cost of capital and IFRS Adoption There are various propositions on the whether the adoption of IFRS reduces liquidity and lower cost of capital. Before the adoption of IFRS investors have to spend some time and effort in translating the standards in a way they can to understand. This process wastes efforts time and incurs transaction cost. The cost of capital determines how risky an investment would be. The higher the cost of capital the more risky the investment will be. According to (Coffee 2002), findings on bonding theory there is a lowered cost of capital. Deske (2006) affirms that this associated reduction in information cost is the main benefits by which IFRS is being adopted. There will be a reduced cost since the same standard will be used by all countries not regarding where the countries are domiciled. Aras and Crowther (2008) argued that the reduction in the cost of information in the adoption of IFRS and an assured consequent reduction can only benefit the countries whose legal, cultural, and economic s ystem is the same with the nations which are involved in setting IFRS, hence other countries which are not beneficial to this may incur increased cost compliance. Although, Barth (2007); Marquez-Ramos (2008) emphasized that IFRS reduces information cost of an economy as capital flows and trade becomes globalised. Improved comparability of the accounting reports: The use of IFRS eliminates the lack of comparability of financial statements. Choi et al. 1999, p. 249 states that comparability eliminate the current misunderstandings of the investors on the reliability of foreign financial statements and this removes one of the most main impediments affecting the flow of international investment. It also makes it easier for companies to compare financial results of different reporting entities from different countries. Global recognition Globalization of the business activities has increased creating a need for comparability of financial information between firms of different countries .Most of the companies are going globalized therefore the use of national accounting rules is increasingly impairing effective communication both in internal and external reporting. In a recent study by the international federation of Accountants(IFAC) most accounting leaders all over the world has agreed that adopting IFRS will be vital for economic growth in their countries. It is also significant as it will make it easier to compare human capital needs of companys subsidiaries all over the world since professionals will be more mobile. IFRS improves profit figures: The movement from the domestically recognized standards to the internationally recognized standards has resulted to a tremendous increase in the net profit figures of top most countries financial reports although the balance sheets have deteriorated. It is noted already that IFRS requires a comprehensive reporting than the domestic standards. IFRS has determined the various accounting methods by which profit figures will be derived from and reported by the firms (Aras and Crowther 2008). Impact of IFRS on financial reporting Examining financial statement implications is important because, †¦ the only direct effects †¦ are changed financial statements †¦ (Hung and Subramanyan, 2004, p.4) Pijper (2009), further examines how IFRS has affected the reporting of financing on the balance sheet. In GAAP the put option were disclosed in a footnote as an off balance sheet figure, but with the IFRS the put options which is held by minorities are now treated as a financial liabilities. Prior to the adoption of IFRS most companies were very conservative in their depreciation rates and this was affecting the business profits in that some assets will still be in use and there is no report on the expense incurred against those assets in the income statements but now the IFRS has reduced the distortions b these excessive prudent nature of depreciation rates .From the studies of (Hung and Subramanyan 2004) IFRS emphasized that fair value should be used for balance sheet valuation. Barth et al (2005) from hi s studies discovered that companies that uses IFRS experienc

Themes in Steinbecks Of Mice and Men :: essays research papers

Of Mice and Men Essay Writing In this essay I will be discussing the novel 'Of Mice and Men' and the importance of the American dream which is a main theme in the novel. I will also be mentioning some other themes which are present such as loneliness, racism, ageism, hardship, friendship and broken dreams. The American dream states ?All men are created equal, that they are endowed by their creator with certain unalienable rights that among these are life, liberty and the pursuit of happiness.? America is supposed to be a land built on opportunity. It promised independence, land and a decent living throughout honest work. It also meant in theory that anyone can become successful. It is a great dream for the lucky few that succeed, Throughout this novel the theme of the American dream plays a major role. The characters Lennie and George?s dream is to buy their own ranch together and be their own boss. Throughout the novel the dream is mentioned monotonously by Lennie and George and soon it becomes Candy?s dream, so it is very important throughout the novel because these characters rely on it and it is the only hope which they have left. The dream is very important because it is what some of the characters rely on and what keeps them going, just the thought that one day they may actually achieve this dream and escape the loneliness and disappointment and peril which is their lives. The dream of the ranch keeps George and Lennie going through the tough times and it infects others like Candy and Crooks yet is just a bunch of words repeated over and over again. It starts off being said rhythmically but by the end they?re spoken monotonously. When George finally accepts that dreams don?t come true, the dream becomes a burden to him. ?Tell about that place George?. Fragment (consider revising) ?Go on-tell again George!? This is a bit of a comfort story for Lennie which you tell a child. Themes in Steinbeck's Of Mice and Men :: essays research papers Of Mice and Men Essay Writing In this essay I will be discussing the novel 'Of Mice and Men' and the importance of the American dream which is a main theme in the novel. I will also be mentioning some other themes which are present such as loneliness, racism, ageism, hardship, friendship and broken dreams. The American dream states ?All men are created equal, that they are endowed by their creator with certain unalienable rights that among these are life, liberty and the pursuit of happiness.? America is supposed to be a land built on opportunity. It promised independence, land and a decent living throughout honest work. It also meant in theory that anyone can become successful. It is a great dream for the lucky few that succeed, Throughout this novel the theme of the American dream plays a major role. The characters Lennie and George?s dream is to buy their own ranch together and be their own boss. Throughout the novel the dream is mentioned monotonously by Lennie and George and soon it becomes Candy?s dream, so it is very important throughout the novel because these characters rely on it and it is the only hope which they have left. The dream is very important because it is what some of the characters rely on and what keeps them going, just the thought that one day they may actually achieve this dream and escape the loneliness and disappointment and peril which is their lives. The dream of the ranch keeps George and Lennie going through the tough times and it infects others like Candy and Crooks yet is just a bunch of words repeated over and over again. It starts off being said rhythmically but by the end they?re spoken monotonously. When George finally accepts that dreams don?t come true, the dream becomes a burden to him. ?Tell about that place George?. Fragment (consider revising) ?Go on-tell again George!? This is a bit of a comfort story for Lennie which you tell a child.

Tips on Writing :: Literature

Tips on Writing There are many different aspects to consider when writing a paper. In order to get the reader's attention, the topic or thesis has to be of interest. Choosing a title appropriate for the essay is also important. Detail and proper structure are also important. These things combine together to make a good essay. The title of an essay is important to the way a reader views the essay. Some titles turn the reader off to the article. In the definition essay we chose, "The Value of Honesty," the title explains that the article is about honesty and that honesty is being valued. Our second essay, "Unlikely Learning," lets the reader know what the essay is about. It talks about the learning a student experiences in unexpected places. "Athenian Adventure" is a good title because the essay is full of the adventures of a day in Athens. The fourth essay we chose was a narrative, "Blue Band Emotional High." This was a good title because it explained the feeling of being chosen as a band member. We think the titles of the essays we chose were good indicators of what the essays were about. Along with capturing the reader's attention, coming up with an appropriate title and adding plenty of detail, a well-written essay has to have the proper structure. Structure consists of an introduction paragraph, several body paragraphs, and a conclusion. Examples of strong structure can be seen in "Blue Band Emotional High." In this essay, the writer uses a strong thesis sentence to build her body paragraphs upon. she writes, "The proudest moment of my life was when I became a member." The following body paragraphs go on to describe the rigorous practice, the suspense of waiting in the trampled field waiting for her name to be called, and then finally hearing it over the megaphone declaring her a member of the band. Without this kind of structure the essay wouldn't even be worth reading. All in all, structure is an extremely important element, if not the most important to good essay writing. A good piece of writing has to keep the audience interested and entertained. If it's hard to keep one's attention on writing, the reader won't fully comprehend it. It would be hard to have every reader interested in one's writing, so one should appeal to a certain audience.

Immorality in The Invisible Man by H.G. Wells :: H.G. Wells, The Invisible Man

     Ã‚  Ã‚  Ã‚  Ã‚   In The Invisible Man, H.G. Wells both demonstrates and criticizes man's tendency to become moral or immoral with the acquirement of power. Like many books of the same era, he uses science as the instrument of retribution for the social crimes that have been committed.      Ã‚  Ã‚  Ã‚  Ã‚   Through invisibility, the Invisible Man gains triumph over science and from this, great power; he can steal, kill, and abuse anybody without fear of being caught, as he describes, "It's useful in getting away, it's useful in approaching. It's particularly useful, therefore, in killing." He also acknowledges the shortcomings of his invisibility, such as making sound and being easily imprisoned once caught, vulnerable qualities which eventually lead to his downfall.      Ã‚  Ã‚  Ã‚  Ã‚   The Invisible Man breaks into many people's homes, stealing money, and leading eventually to physical abuse and killing. When faced with power, such as invisibility, man becomes immoral and is willing to do anything for personal gain and enjoyment. The Invisible Man's nemesis, Kemp, brings up the immorality by saying, "But-! I say! The common conventions of humanity." The Invisible Man just reinforces his arrogance by rebutting with, "Are all very well for common people." He believes there is nothing wrong with doing anything for his own survival since he is superior. He also brings the situation one step further with his reign of terror, which he describes as, "Not wanton killing, but a judicious slaying." He now wants to have complete control over everybody through terror and wants to start "the Epoch of the Invisible Man." This shows his complete thirst for power.      Ã‚  Ã‚  Ã‚  Ã‚   The use of science to give man superpower can likewise be found in Mary Shelley's Frankenstein.   Man should not create the invisible man or the invincible man since they are too powerful and this gives them the role of creator which, according to the society of the day, should only be a god's role.   He shows how science can accomplish great things and also how it can cause great harm.      Ã‚  Ã‚  Ã‚  Ã‚   The harm that the Invisible Man's exploitation of power causes does not go unpunished. Wells demonstrates the social need for a sense of justice, as the Invisible Man is eventually captured and beaten to death for the terror he both created and wanted to create.

Magnet Status

While many nurses are campaigning for staffing ratios, others are putting their hopes in a different kind of â€Å"magnet† – hospitals throughout North America (and one in the United Kingdom) that have received special designation by the American Nurses Association (ANA) through its American Nurses Credentialing Center (ANCC). Some supporters of the â€Å"Magnet hospital† concept view it as a substitute for ratios, others don’t. The term â€Å"Magnet† was coined in the 1980s, when researchers for the American Academy of Nursing (AAN), and ANA affiliate, began analyzing hospitals with a good record of nurse retention. The forty-six facilities studies in the original 1983 report were places where nurses, not surprisingly, said they liked to work. These hospitals had low turnover and vacancy rates, although they were located in areas with a lot of labor market competition for nurses (Gordon, 2005). Hospitals that act as a â€Å"magnet† for excellence creates a work surrounding that distinguish, rewards, and promote proficient nursing. Organization attributes that attract nurses to magnet hospitals support better patient care and outcomes, including a strong presence of nurses in patient care decision making, a high level collegiality between nurses and physicians, and more time for nurses to care for and teach patients, and the encouragement and expectation of critical thinking. Magnet designation is also an effective marketing tool for attracting patients and for recruiting and retaining quality nursing staff. Although the magnet designation provides numerous benefits for a hospital, the road to attaining it is not an easy one. The written application for magnet status must demonstrate how the hospital implements the Scope and Standards for Nursing Administrators and how it incorporates the forces of magnetism within nursing services. It can take two or more years to perform the assessment, compile the documentation, and have the site visit by magnet reviewers (Grossman, 2007). Some tips on making the journey to magnet designation a successful one include the following: –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Get buy-in front from executive management, nurse managers, and nursing staff –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Seek advice from other organizations that have navigated the process –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Organize the effort across all organizational levels and departments –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Establish a timeline to keep team efforts on track and promote team focus –  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Coordinate personality styles and team members’ strengths, teaming â€Å"thinkers† with â€Å"doers† Hospitals meet the magnet standards by having a flatter organizational structure that allows nurses more say in both patient care and how their jobs are designed, making the chief nursing officer part of the executive team, hiring more staff nurses and reducing or eliminating agency and travel nurses, and supporting top nurses in pursuing research and advanced degrees (Porche, 2005). References: Gordon, S. (2005). Nursing Against the Odds: How Health Care Cost Cutting, Media Stereotypes, and Medical Hubris Undermine Nurses and Patient Care. New York: Cornell University Press. Grossman, S. (2007). Mentoring in Nursing: A Dynamic and Collaborative Process. New York: Springer Publishing Comapny. Porche, R. A. (2005). Issues and Strategies for Nurse Leaders: Meeting Hospital Challenges Today. Oakbrook Terrace, IL: Joint Commission Resources.