Investment in Bitcoins Essaypilot

Bitcoin Investments: A New Bubble or a New Gold Mine Background Investment has been a key driver of all world economies. Investors make decisions on what to invest in based on how viable investment avenue appeal to them. Investment in the digitalized cryptocurrency has been a key agenda for most investors. Bitcoin is a cryptocurrency form means which uses cartography as its security feature (Whelan, 2013). The term bitcoin was first been introduced by Satoshi Nakamoto in January 2009 and was used as a peer to peer means of payment. The network of payment was not however adopted by many people and has only come to catch the attention of most investors almost ten years down the line. The form is organic in nature and is not controlled by any central monetary body is not subject to manipulation by governments (Whelan, 2013). However, it does face some challenges in its operations. In this research, I will be using governmental and financial publications to try to answer if bitcoins are a good investment and worth the time or if this is just a bubble and its about to burst. The term Bitcoin has first been introduced by Satoshi Nakamoto in January 2009 Problem Statement Investments in the use of Bitcoins is very efficient and safe due to the mechanisms used to support the system. The use of the system is also very swift and leads to more yields than other investment mechanisms used. The system has also been known to be useful in communication and in the transfer of information since it enhances anonymity (Coindesk, 2015). The crypto-currency form should, therefore, be enhanced by its operating to make it more applicable and available to all range of investors. Many people have made tremendous amounts of money from the use of the bitcoins. Complains from the usage of the system have emerged but have been very minimal compared to the success stories and evidence put forward by the cryptocurrency operators (Coindesk, 2015). The system has at some point been hacked and criminals gained access to the digital wallets hence leading to loss of money. The operating system of the bitcoins should, therefore, be optimized in terms of volatilit y and for security reasons so that it can wholly be adopted for investment purposes. Purpose of the Study This study will use governmental and financial publications as well as mathematical derivations to determine if bitcoins are a good investment and worth the time or if this is just a bubble and its about to burst. The main aim of the study will be the investment viability of the bitcoins in relation to another form of money systems. Research Questions I. Is investment by use of bitcoins secure? II. Is the trade in bitcoins overregulated? III. Is the trade in bitcoins a mere speculation or a viable form of investment? IV. How do interest rates affect the market return on bitcoins? Study Hypotheses I. Investments in the use of Bitcoins is the most secure form since bitcoin address is generated at the end of every transaction II. Investors are more comfortable when trading in Bitcoins since external bodies such as governments, financial intermediaries have no control over bitcoins accounts hence investors activities are not affected. III. The only most prominent factor that affects the usage of bitcoins is their volatility and hence trading in Bitcoins is real and not mere speculation. IV. Interest rates are the major driver of the Bitcoin market return. Methodology for the Study The study will adopt different models that will aid in the investigation of the viability of the bitcoin market. The models will use mathematical derivations to assess the relationships between the bitcoins, gold and the dollar (Hammoudeh Yuan, 2008). The first model will be the Garch model which will make use of different variables to determine mean and the variance of the bitcoin in relation to the federal funds rate ( Fedt-1), the United States $-Euro exchange rate ($-Eurot-1), the British pound- US$ rates (US$-GBPt-1), the financial times stock exchange (FTSE) index, the gold futures rate (GFt-1), Gold cash rate (GCt-1) and the bitcoin prices rate (P) (Hammoudeh Yuan, 2008). Meanchange in lnPt =ОІ0+ОІ1 lnpricet-1+ОІ2 lnpricet-2 + ОІ3 Fed t-1+ОІ4 $-Euro t-1 +ОІ5 $-Euro +ОІ6FTSE t-1+ ОІ7 GF+ОІ t-1 +ОІ8GC t-1+О µtMedianПÃ'“2t =exp(О »0+О »1FedtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »2 $-EurotÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »3$-GBPtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »4FTSEtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »5GFtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »6GCtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1)+О ±ÃÅ¾Ã‚ µ2tÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІПÃ'“2tÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1 The other model will be Garch( Exponential) model The model attempts to investigate the effect on the returns of bitcoins by the leverage effect (good or bad news) by the use of variance and mean (Hammoudeh Yuan, 2008). MeanChange in lnprice t =ОІ0 +ОІ1 lnpricetÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ2 FedtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ3 $-EurotÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ4 $-GBPtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ5 FTSEtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ6 GoldFut uretÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+ОІ7 GoldCashtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О µtMedianLn(ПÃ'“2t) = О »0+О »1FedtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »2 $- EurotÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »3 $-GBPtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »4FTSEtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »5GFtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О »6GCtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1+О ±(О µtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1/ПÃ'“tÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1)+ОÃ'â€"(|О µtÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1/ПÃ'“tÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1|Ð ²Ã¢â€š ¬Ã¢â‚¬â„¢ Ð ²Ã¢â€š ¬Ã'â„¢2/П)+ОÃ'‘ln(ПÃ'“2tÐ ²Ã¢â€š ¬Ã¢â‚¬â„¢1) From the variance equation, there seems to be a low rate of convergence to a long run equilibrium. There is evidence of clustering of the volatility as well a higher rate of persistence due to volatility like that of gold. Therefore, the demand for bitcoins highly affects their returns and also less affected by the temporal shocks caused by changes in prices showing more similarity of bitcoins to currency. Interest rates are thereby the major factors that affect returns of an investment using bitcoins (Tully Lucey, 2007). The volatility is seen to be positive with all the variables but with the exchange rate between the dollar and the Euro. From the Garch (Exponential model), the leverage effect has no asymmetry on the return of the bitcoins and to the returns and hence one can use bitcoins to hedge market risks. From the foregoing, bitcoins then acts like more of a currency (Tully Lucey, 2007). Literature Review[bookmark: _GoBack]Tully Lucey (2007) states that the variance of the bitcoins is usually externally determined and not by internal factors like gold prices since it is mostly affected by forces of the market and also due to its high intrinsic values. The risk inherent in the management of bitcoins highly depends on the previous volatility levels of the bitcoin and the dollar (Coindesk, 2015). Gold was much more affected by the demand for jewelry since its its a metal and not an industrial item hence influenced by shocks that are shortlived (Hammoudeh Yuan, 2008)Tully Lucey (2007), states that bitcoins could be useful in hedging against the dollar. References Coindesk(2015). Bitcoinpriceindex URL:http://www.coindesk.com/price/bitcoin-price-index/Accessed May 2015. Hammoudeh,S.,Yuan,Y.,2008.Metalvolatilityinpresenceofoilandinterestrateshocks.EnergyEc on.30,606â€Å"620. Tully,E.,Lucey,B.,2007.ApowerGARCHexaminationofthegoldmarket.Res.Int.Bus.Financ.21( 2),316â€Å"325. Whelan,K.(2013) Howis bitcoin different from the dollar?Forbes.URL:http://www.forbes.com/sites/karlwhelan/2013/11/19/how-is-bitcoin-different-from-the-dollar

Baseball - Revenue Sharing - Free Essay Example

One of the most interesting things regarding my research of the MLB is the system that they use to pay the teams of the league called revenue sharing. Revenue sharing is when all of the 30 teams in the league give in 31% of their total local revenue, which is then divided and equally dispersed to each team (Revenue Sharing). Teams acquire the majority of their revenue locally through things such as television contracts, concessions, ticket sales, partnerships/sponsorships, and team merchandise. This system is in place to improve competitive balance; it rearranges the money made in the MLB from profitable teams to less wealthy teams in hopes to improve their capability of appealing to the better and more expensive players (Fontinelle). In simple terms, the New York Yankees, the richest team in the league, gives in more money than they recoup and the Tampa Bay Rays, poorest team in the league, receives more money than they put in (Business). Before my research, I was unaware that there was a specific system in the MLB to prevent dominant teams in the league from having an unfair advantage over the less successful clubs; I used to think that all teams received the same amount of compensation. This is sociologically interesting because it gives underprivileged teams the opportunity to compete with affluent teams. The idea behind revenue sharing is for a manager to take the money they have received and invest it in the goal to rebuild their roster, overall improving their team as a whole. Baseballs collective bargaining agreement states each club shall use its revenue-sharing receipts in an effort to improve its performance on the field and prohibits use of that money to service debt related to franchise acquisition and service to debt not related to improving on-field performance (The Associated Press). Although the principles of revenue sharing are established to combat structural inequality, there have been instances where smaller market teams abuse the money they are given for the reasons listed in the quote above. In fact, recently, the Miami Marlins, Oakland Athletics, Pittsburgh Pirates, and Tampa Bay Rays have been suspected of inappropriately using spending their revenue sharing payments (The Associated Press). The idea of the conflict theory presents itself in this situation since the society of the MLB is in eternal conflict as teams compete for limited resources. Even though big name teams such as the Cubs and Yankees pay in millions of dollars for revenue sharing, they try to retain their wealth and power preventing smaller teams from moving up in the system.

The Hayward Fault of California

The Effect of Social Networking on Businesses Today - Free Essay Example

Sample details Pages: 4 Words: 1305 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Argumentative essay Did you like this example? The Effect of Social Networking on Businesses today! The general purpose for businesses using social networks is for communication, sponsorship, consumer research, community building, and for marketing. Each one helps a business grow in a huge way. These social sites are able to get the business publicity and get the word out about whom they are and what they do. Also the social media sites help build awareness of the business and is seen by billions (depending on site). Businesses are able to use advertising on social media to introduce new products or ideas of their business. Social media is also a way that all people are able to communicate 24/7 and share ideas and collaborate. Plus some of the people who see it could become customers, employees, partners, or suppliers for the business. Through media businesses are able to find out the likes and dislikes of customers and the businesses are able to communicate with the customers and get feedback. Eventual ly after getting potential clients building up a community of people who follow your business, you will see these people will start to recommend others to your business publically. Now in everyday social media businesses use advertisements and online surveys on popular medias to get you to check out the website of their business. There are many social websites used by businesses for getting noticed. One common website is Instagram. Instagram is used by sharing photos, and videos to people on that social media. Facebook is another popular common media one Facebook customers are able to like a businessà ¢Ã¢â€š ¬Ã¢â€ž ¢s page and share it as a recommendation to their online friends. Twitter a common site is used to connect with people and can be used to tweet about the business and some of the products they are selling. Another social media that is common that businesses use is YouTube. YouTube is used by uploading videos of any length and ità ¢Ã¢â€š ¬Ã¢â€ž ¢s up for the whole w orld to see. This is a great way to promote a business. Snapchat is another social media that can be used to connect with followers of the business. The business can take photos of new ideas or upcoming products or just use the media to get feedback from the customers by taking photos and posting them on their story. Pinterest another media site is used to share new discoveringà ¢Ã¢â€š ¬Ã¢â€ž ¢s or to post pictures or videos of a new interest. Linkedin is a common social media site, but it is only used to share your business profile and experience. Flickr, a common social media site that businesses can share photos and videos about their business. Pinterest is another common social media site that businesses can use. On Pinterest businesses can show visuals of items or ides and pin them to a new or existing board. This can help businesses show what they really do and provide for customers. The social media sit Vine is also a site that businesses can use. Vine is where people upload entertaining videos. A business can create funny videos involving there products or just videos that are trying to get the word out about the business. The site meet up is another common website that a business could use to meet up and connect with other people, customers or other businesses and give input. The website Tumbler is a website that a business could use. On the website a business can design, arrange and dedicate a whole page to supporting the business. The business could share video, photos, or just status updates about their latest work or products. The social site Tagged is a site where a business can search other profiles and share virtual gifts and play games. This site would be great for businesses to interact with there customers. The benefits to businesses that use social media sits are very rewarding and helpful to the business. One benefit of using social media for a business is spreading awareness and making it known. When using social media, a lot of peopl e see what you post or updated your status to and what pages or businesses youà ¢Ã¢â€š ¬Ã¢â€ž ¢ve liked.so that means people will see the images of products and will learn about what your business is. If they like it they could like the page and share it with all there friends. Then you have a lot more people who are seeing your business and learning what it is about. Another benefit of using social media for a business is constant interaction with customer. Finding out about the likes dislikes of the customers is very essential for your business. The customers are the reason for your businesses growth, so it is essential that you learn to work the business around the customers. Otherwise if the customers donà ¢Ã¢â€š ¬Ã¢â€ž ¢t like the way the business is operating and the business does not have communication with the customers, then the business will lose clients. Also a benefit from social media is customer loyalty. If customers see that the business is taking the time to actua lly hear the thoughts and ideas or complaints of them and take them into consideration. The customer becomes loyal and the business benefits by that in many ways as of the customer is willing to recommend and share encouraging words a both the business. Another example of benefits for social media is marketing expenses is more efficient. For example if you were to spend on dollar on a specific ad on a website you could gain just one result. But if you were to spend two dollars, then you could get 3 results, and that is because youà ¢Ã¢â€š ¬Ã¢â€ž ¢ve earned media. With social media a business can benefit by getting ahead of its competitors. The business can strategize ways to build their business above the competition. Three businesses that use social media sites are Target, Rue 21 and Home depot. The business Target uses the social media site Facebook. On Facebook Target shares new products and introduces new ideas to the public. Target uses the media to expand its audience or c ustomers and tries to get t name out there and known. The business Rue 21 uses the social media site Facebook. On Facebook Rue 21 posts photos of new products and shares deals that are going on in a certain time period. They also use the media to connect to their customers and keep them updated. Also they use Facebook to market their products widely throughout Facebook. The business Home depot uses Facebook to give updates on products and deals that are coming up on them. Home depot uses media to market and communicate with their customers. Also they use the social media to stay on top of their competitors and see how they can do better as a competing business. Arnold, Tyler. The Purpose of Social Media for Business. 10 Nov. 2013. Web. lt;https://www.gosimplysocial.com/blog/why-its-important-for-your-business-to-be-social/gt;. Collins, Ian. 5 Common Uses for Social Networking and the Effect on Your Target Audience. iBlogussion RSS/i. Web. 29 Sept. 2014. 12 Astounding Reason s Why Your Small Business Should Use Social Media Marketing. iSocial Media Beast/i. 21 Apr. 2014. Web. 29 Sept. 2014. Thompson, Derek. The Most Popular Social Network for Young People? Texting. iThe Atlantic/i. Atlantic Media Company, 19 June 2014. Web. 29 Sept. 2014. Top 15 Most Popular Social Networking Sites | September 2014. iTop 15 Most Popular Social Networking Sites | September 2014/i. 1 Sept. 2014. Web. 29 Sept. 2014. Top 10 Benefits of Using Social Media to Grow Your Business | Engaged! iEngaged/i. Josh Media Marketing. Web. 29 Sept. 2014. Cisnero, Kristina. 10 Benefits of Social Media for Business. iHootsuite Social Media Management 10 Benefits of Social Media for Business Every Skeptic Should Know Comments/i. 1 July 2014. Web. 29 Sept. 2014. Don’t waste time! Our writers will create an original "The Effect of Social Networking on Businesses Today" essay for you Create order

Microeconomics Research Paper - 1617 Words

Nicholas Benyola Professor Mansourian Econ 201- 25 17 May 2012 Microeconomics Research Paper Minimum Wage In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving†¦show more content†¦This is a true statement, but opposition says that this only drives up the standard of living and inflation rate in the world. Inflation is defined as the overall general upward price movement of goods and services in an economy. Although some people who earn the minimum wage are teenagers, almost two-thirds are adults. The average min imum wage worker brings home about half of his familys earnings. Increasing the minimum wage will help these workers to make up for lost ground due to inflation and it will help make work pay. Though inflation is one of the main problems in our economy and even though inflation and minimum wage are directly related, increasing minimum wage will give opportunity for a lot of lower class families to make enough to afford important things, such as insurance. If someone takes a trip to the doctor, with no insurance, they will most likely have to pay around eight- hundred dollars out of pocket. This would take anyone at least three months on minimum wage with two incomes to pay off these medical bills. Barak Obama’s plan to institute a health care plan for everyone will relieve a huge burden on people and also allow them to stay above the poverty line. Heidi Shierholz, an economist at the Economic Policy Institute says, â€Å"Jacking the federal minimum wage from $7.25 to $8.25 w ould give a raise to 10 million workers, including many currently earning their stateShow MoreRelatedEco 201 Final Project (Selected Topic Is Ford Motor Company)988 Words   |  4 PagesBuy: http://hwcampus.com/shop/eco-201-final-project/ ECO 201 Final Project Guidelines and Rubric Overview The final project for this course is the creation of a research paper. Every day, millions of economic choices are made by people—from what brand of soap to buy to how many employees to hire for a factory. Microeconomics provides us with the tools, models, and concepts to better understand individual choices in the marketplace and how resource allocation is determined at the micro levelRead MoreEssay on Harley Davidson-Microeconomics1299 Words   |  6 PagesWeek 11 Course Paper – Harley Davidson-Microeconomics Jason Norris Rasmussen College Author Note This research is being submitted on September 13, 2012 for Mr. Rick D. Pretzsch G204/ECO2023 Section 01 Microeconomics course at Rasmussen College by Jason Norris Week 11 Course Paper - Final Submission Prepare a 3-4 page essay that summarizes how microeconomics affects your chosen company. Use your previous course paper assignments to assist you with this essay. Remember to use suggestionsRead MoreThe Effects Of Minimum Wage From A Microeconomic Perspective1640 Words   |  7 Pages The Effects of Minimum Wage from a Microeconomic Perspective Nathaniel Fishburne Embry-Riddle Aeronautical University Introduction The first minimum wage law was implemented in New Zealand and Australia in the late 1900s. In 1940s, George J. Stigler founded the first standard model of minimum wage. The model predicts that the if â€Å"minimum wage system is set above equilibrium wage level, it would create unemployment because some previously employed workers will lose their jobs whileRead MoreThe Effect Of Macroeconomic Shifts On The Ridge Tool Company Essay982 Words   |  4 Pagesthe most impact are consumer wealth, resource costs and expectations. First the variables will be defined, then they will be analyzed using a historic perspective against ridge tool’s financial statements, and finally, we will be comparing to prior research to note any similarities to micro economic impacts. Macroeconomic variables have a large impact on a company’s performance and on our outlook as citizens. Before looking at past shifts, let us examine the variables and their impact on the economyRead MoreSwot Analy sis : Keurig Green Mountain Essay935 Words   |  4 PagesIntroduction The latest Hoover’s market research and analysis indicate the coffee and tea are forecast to grow at an annual compounded rate of three percent. Keurig Green Mountain is the third largest manufacturer and distributor of coffee and coffee related products behind both Starbucks and Nestle. A survey conducted by the National Coffee Association confirms thirteen percent of people drink a single cup brewed coffee and accounts for $4.3 billion in sales (Oatman, 2014). To capture furtherRead MoreEcon Tutorial812 Words   |  4 PagesUNIVERSITY OF TECHNOLOGY, JAMAICA SCHOOL OF BUSINESS ADMINSTRATION ECO 1001: INTRODUCTION TO MICROECONOMICS TUTORIAL #1 1. Which of the following is the best definition of economics? a) The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. b) The study of how consumers spend their income. c) The study of how business firms decide what inputs to hire and what outputs to produce. d) TheRead MoreEconomic Theory1225 Words   |  5 PagesAmerican University Author Note This paper was prepared for ECN 150, Introduction to Microeconomics, Module 2 Homework Assignment taught by Nikki Follis. Part I After reading the two articles in Modules 1 and 2 related to Economic Theory (first,â€Å"How Did Economists Get It So Wrong† and second, â€Å"History of Economics Playground†), reconstruct what happened from 2006 through 2012 as it relates to microeconomic theory. Was there too much focus on the macro climateRead MoreEconomics : The Financing Of Health Care1379 Words   |  6 Pagesevolving on a major substantial evolution from its organization, management structure, and payment structure. The economic component of healthcare is equally important to better understanding the order to structure stature and is very successful. In this paper will be discussed the evolution of economics and the healthcare system and the healthcare funding timeline of structure. History and Evolution In 1865 the Freedmen’s Bureau started the first construction of healthcare reform. The government constructedRead MoreThe Effects Of Minimum Wage From A Microeconomic Perspective1670 Words   |  7 Pages The Effects Of Minimum Wage From A Microeconomic Perspective Nathaniel Fishburne Embry-Riddle Aeronautical University Introduction The first minimum wage law was implemented in New Zealand and Australia in the late 1900s. In 1940s, George J. Stigler founded the first standard model of minimum wage. The model predicts that the minimum wage system. It set above equilibrium wage level, would create unemployment because some previously employed labors lose their jobs while some find itRead MoreMeasuring Price Sensitivity And The Macroeconomic Environment Essay1625 Words   |  7 Pagesstudies detailing the relationships and microeconomic factors between price sensitivity and the macroeconomic environment. This report explored each category listed below, as businesses, in particular, XYZ Company, must use microeconomic principles to make and validate decisions based on the following factors: price elasticity, consumer choices, production and costs, supply and demand, aggregate supply and aggregate demand, and macroeconomic measurements. Microeconomic principles aligned with macroeconomics

The Foreign Policy Behavior Of United States - 1615 Words

Many international events in the world are an outcome of decisions made by individuals. This has led to a series of discussions amongst scholars, who wonder to what extent can state leaders formulate policies that reflect national interests? In a state setting the burden to formulate policies aren’t only limited to the President, but also to different individuals who may pursue their own goals. This is evident in Kenya, whereby analysts claim that the 2011 intervention in Somalia wasn’t only influenced by the then President Kibaki, but also his Minister for Defense Yusuf Haji who wanted to advance the interest of Ogaden tribe in Somalia’s Jubbaland. Scholars claim that individual policymakers have distinct differences that range from their background to personality perceptions, which in turn can affect the nature of their policies. However, other scholars differ claiming that there’s no wide distinction, because state and individual decision makers as they are all rational actors exemplifying their national interests. This is revealed in the foreign policy behavior of U.S. – Kenya relations, whereby change of regimes doesn’t necessarily reflect a change of interest. 1.1. PRESIDENT MWAI KIBAKI President Mwai Kibaki, the leader of the NARC government was sworn in as President in 2002, taking over from his successor Daniel Moi. His presidential win marked a great achievement, especially because his newly formed NARC party defeated KANU with more than 30% in bothShow MoreRelatedNorth Korea Is A Rogue State Essay1544 Words   |  7 Pages North Korea is a rogue state. A nation whose actions and behavior could set off a deadly regional conflict. A conflict which could involve the use of nuclear warheads, cause massive loss of life. Since the end of the Korean War tensions have run high between North Korea and the surrounding countries. The biggest cause for concern for the U.S. and South Korea is North Korea’s continual test of nuclear weapons paired with its aggressive behavior towards its regional neighbors. North Korea’s irrationalRead MoreEssay about Iran Engagement Policy Option1643 Words   |  7 Pagesrelationships with the United States. The focus of this paper is an analysis on an Iranian engagement policy option outlined in the CSIS Report â€Å"The Gulf Kaleidoscope: Reflections on the Iranian Challenge†. The international relations theory of liberalism is applied using the tenets of economic interdependence and democratic transparency. For three decades, exchanges between the United States and Iranian diplomats have been tactical, not strategic. There are various policy options that can beRead MoreForeign Policy : An Overview Of Major Trends Essay1242 Words   |  5 Pages Foreign policy is a policy that is pursued by nation in its dealings with other nations that is designed to achieve national objectives. Therefore, the general objectives are to guide activities and develop a relationship of one nation through the interaction with another nation. Moreover, this development of foreign policy is somehow influence by international considerations as the policies or the behavior of other foreign governments and the peoples through negotiation, other measurement shortRead MoreThe End Of The Second World War Essay1743 Words   |  7 Pagesthe use of multilateralism, diplomacy and peaceful methods in solving conflicts. Its traditional values in foreign policy are neutrality and mediation. The country has also been in strumental in peacekeeping missions and committed to multilateral organizations (Potter, 1996). However, since the establishment of the Harper regime, there has been a considerable change in the country’s foreign policy. These changes include a more active participation in the war against terror, its alignment with the westernRead MoreThe Political Tensions Between North Korea And South Korea Essay1473 Words   |  6 PagesSouth Korea. There is persistent opposition in this region of Asia, mainly due to the clash of political systems and religious ideologies that officially began 66 years ago. The Korean War lasted from 1950 to 1953, and it ended when the United Nations and United States met with North Korean representatives to sign the armistice agreement. This ended the 37-month long war (Wright). However, the divide between the North and the South have still been greater than ever. The research question I will be addressingRead MoreCold War and U1205 Words   |  5 Page sS. Truman was President of the United States from 1945-1953. President Truman presidency was marked throughout by important foreign policy initiatives. Central to almost everything Truman undertook in his foreign policy was the desire to prevent the expansion of influence of the Soviet Union. At the end of World War II it was immediately apparent that Russia was trying to draw as many countries as it could into its influence, if not total control. The United States became extremely alarmed as countryRead MoreThe Relationship Between Republicans And Republicans923 Words   |  4 Pagesconflict events, they discovered evidence that Democrats were more controversial than Republicans during the 1949-65 period and that Republicans were more arguable during the 1966 -92 periods. Orthodox opinion holds that republicans have a pugnacious foreign policy to which preferences were compared to democrats but quantitative research on the use of force finds no relationship between the presidents party and his propensity to use force. First, although the Republicans have preferred defense spendingRead MoreThe Changes the Obama Adminsitation Has Made in Foriegn Policy959 Words   |  4 Pagesreceived criticisms due to its post-9/11 foreign policy. Its policy created shifts in alliances and became a polarizing issue both domestically and internationally. The US has had a significant shift since Barack Obama took office, moving away from the foreign policy that was in place under George W. Bush. †¢ Discuss the major changes the Obama administration made to US foreign policy. †¢ Analyze these changes in the context of the international system level, state level, and individual level. ItRead MoreCurrent Events and US Diplomacy on Truman Doctrine957 Words   |  4 PagesTruman Doctrine in March 1947 by President Harry S. Truman was an outline for the basic foreign policy that America would use against Communism and the Soviet Union for nearly four decades. While President Truman assumed office while inexperienced in global affairs, the doctrine demonstrated his firm stewardship on foreign policy. The doctrine, which was eventually adopted as an international relations policy, was introduced in a speech regarding intentions of the country to help Turkey and GreeceRead MoreThe Importance Of Bilingualism And Its Effects On The World1709 Words   |  7 Pagesteammates had feelings just like many other Americans in the United States about knowing other languages. In the United States the rate of people speaking two or more languages, bilingualism (2) and multilingualism (multiple), is the lowest in the world (Grosjean 15). When defining bilingualism, I am referencin g the ability to communicate, whether it is speaking, writing, reading, or understanding, in another language. Out of the entire United States, close to 17 percent speak more than one language but

Project Management and Innovation in Process Industries

Question: Discuss about theProject Management and Innovation in Process Industries. Answer: Introduction Project management approaches and tools play an important role in accomplishment of the projects. It helps to address the dynamic external factors and internal constraints of the project. Hence, it is important for the project team to understand the different approaches of project management and the elements that either complement or integrate each other for better project management and project delivery (Wysocki, 2009). The paper has been developed to present a literature review to analyse strengths and weaknesses of three different project management approaches. Furthermore, the study will present the elements of project management tools to discuss their advantages and disadvantages. Comparative Analysis Through the survey of the previous literature, three of the best project management approaches have been identified as discussed in the following section. Traditional Approaches According to the traditional approach of project management, the goals and scope of the project remains fixed till the completion of the project. The project starts with initiation of the deliverables that leads to project planning and design. The plans and designs are prepared by considering various assumptions (Rose, 2014). After the completion of planning and design, the project control and monitoring phase starts in which the project team keeps a tight watch on the activities of the project to check whether the project is progressed according to the milestones. The project is executed to check the quality of the deliverables. Finally, the project completion reports are prepared to complete the project. Strengths Quick completion of Project: It leads to quick completion of project due to no re-designing and planning (Gray, 2007). The project is controllable and increases the feeling of security. Do not involve changes in plans: Traditional approach does not involve any changes in plan that delivers the project on the planned result (Gray, 2007). Simple Planning: Traditional Approach involves simple planning and designing of projects. It does not consider many uncertainties that make it easier for the project team to carry on with the project. Weaknesses Do not consider uncertainties: The world is uncertain and not predictable. Hence, the approach does not consider any uncertainties which are a major weakness of the approach (Gray, 2007). Chances of failure of project deliverable: The traditional approach does not consider the uncertainties in the real world that may lead to failure of the project. Critical Chain Approach The Critical Chain Approach is used in projects that have certainties of hindering constraints. It is assumed that at least one process will create problem in completion of the project. Hence, a critical path is developed to mitigate those constraints and a separate plan is prepared to overcome the constraints. According to this approach, at first the constraint is predicted, then analysed and at last the constraints are removed (Redway, 2015). Previous data and information are used to minimise the chances of occurrence of such assumed constraints. Hence, it is a scientific approach of project management that involves behavioural study and mathematical calculations to identify the impact of the uncertainties and ways to mitigate them. Strengths Consider uncertainties: It considers uncertainties that increase the effectiveness and efficiency of the project. Better delivery of project: It is used for projects that have chances of uncertainties. Hence, a proper assumption of uncertainties leads to better delivery of the project (Howes, 2011). Weaknesses Delay in completion of project: There is a chance of delay in the completion of the project (Howes, 2011). A better planning by considering the prior data and information can be helpful to seek better completion of project. Extreme Project Approach Extreme Project Approach is mainly used to handle dynamic problems like changing demand of the customers. It involves continuous process of planning and re-designing. Hence, there is a need of flexible project management strategy that could be helpful in meeting the dynamic uncertainties during the project (Maylor, 2015). It is important to note that there are certain projects that does not have proper clarity regarding the requirements and needs proper market research. An extreme project approach is primarily used to conduct project with high level of uncertainties. Strengths Consider dynamic uncertainties: It considers dynamic uncertainties that reduce the chances of failure of project. Effective completion of project: It is mainly used for complex projects that need re-planning to seek the desired results. Deliverables are appropriate: The deliverables are according to the desire of the stakeholders that increases the quality of the project (Kerzner, 2011). Weaknesses Re-schedule leads to delay: The continuous re-scheduling and re-planning leads to delay in the completion of the project. Failure of budget: There is a chance of failure of budget because of dynamic uncertainties in the project (Kerzner, 2011). Hence, there is a need of flexible budget to conduct the project. Comparing the above mentioned project management approaches, it can be seen that traditional approach is mainly used for static projects that do not involve much uncertainties (Lefley, 2014). On the other hand, critical chain approach is used for conducting projects that involves critical activities. In the case of extreme project approach, it is only used for dynamic projects that involve changing desire of the stakeholders and high level of uncertainties (Lefley, 2014). Hence, it is important for the project team to understand the level of uncertainties involved in the project while choosing the best and suitable approach of project management. Supportive Elements of Project Management Tools and Systems Through the identification of the three significant project management approaches, some of the supportive elements of project management tools and techniques have been discussed in the following section to create substantial argument. Project Evaluation and Review Techniques (PERT) PERT has been identified as one of the most significant statistical tools that can be precisely utilised in project management (Desmond, 2014). The PERT has been critically designed by the US Navy to analyse project tasks and deliverable. Strengths Compelling managers to set up planning: PERT has offered the project managers to establish the most suitable plan according to the resources and scheduling. Therefore, the project manager has got a firm grip on the project controls to identify each of the most appropriate events attached to the project. Concentrate on crucial project elements: PERT technique has concentrated on the critical elements of the projects that are required to be corrected. The statistical analysis of PERT can evidently identify the elements required to be corrected for efficient project work (Colin Vanhoucke, 2015). Deliver forward-looking control: By developing efficient network system with the subordinates and managers, PERT can deliver forward-looking control to identify the right tactics to be followed. Weaknesses Suitable for long-scheduled project management: Due to the activity-time of the operations in PERT, the technique is perfectly suitable only for the projects that have long schedules. Hence, most of the project managers do not consider the technique during the project reporting. PERT emphasis on time but not cost: Another significant weakness of PERT has been the emphasis on time only. Through the statistical analysis of PERT, project leaders can only identify the time but not the cost of the works (Gelbard, Pliskin, Spiegler, 2012). Therefore, such tool can create massive strategic problems to organisational management. Work Breakdown Structure (WBS) Work Breakdown Structure is one of the crucial project management tools to plan out major tasks and activities in a structural way. Breaking down the crucial tasks attached to the project management, such instrumental tool can help to manage the tasks in an efficient way. Strengths Divide the tasks into smaller units: WBS has allowed breaking down the major tasks of the project management in smaller units so that responsible delegates can perform the activities providing efficient skills and resources (Collyer Warren, 2009). Deliver proper scheduling and resources planning: The sequence and schedule planning can be efficiently defined through WBS. Meanwhile, by improving the resources planning, accurate forecasts based on WBS may save project cost on staffing. Aid budgeting planning: By identifying the project management risks and schedule of delivery, WBS can aid budgeting planning by monitoring the risks associated with the project works. Weaknesses Vague tasks may be attached to the project management: In the meantime, vague tasks have been one of the disadvantages of WBS tool. As the structure of WBS has to be included each significant tasks according to the project planning, sometimes project managers have found it difficult to include the most significant tasks. Hence, some of the less prioritised tasks have to be added that can cost time and investment. WBS may get outdated in quick order: Most importantly, as project scheduling usually alters according to the change request, WBS can get quickly outdated. Hence, updating the WBS can become a challenging task during schedule change. Gantt Chart Gantt chart can be identified as one of the significant project management system tools that deliver a visual representation of scheduled tasks effective for project leaders and project team members. Gantt charts can deliver a firm control on the time management to complete the tasks according to the given limit. Strengths Clarity on tasks and timelines: Gantt chart can clarify the tasks and timelines associated with a project in a visual way so that the team members can identify the tasks. Meanwhile, Gantt chart can replace frequent meetings so that precious time can be saved (Gergert Ponomareva, 2015). Along with that, meaningful Gantt chart can add external motivation to the team members to focus on their ability to complete the tasks allocated to them. Time Management and Flexibility: By showing the adverse impact of delaying the project work, Gantt chart can foster significant collaboration among the team members. On the other side, in the case of the change request, schedules may have been revised to adjust the changes. Such instrumental facilities have been the strengths of Gantt chart technique. Weaknesses Relying on Work Breakdown Structure: Gantt chart of a project has significantly relied on the WBS that may have been already developed. Sometimes, significant milestones can be seemed to be missing from the WBS. Therefore, the risk of recreating the entire project schedule will be attached if Gantt chart has been constructed (Raz Michael, 2011). Suitable for smaller project management tasks: Gantt charts are perfectly suitable for smaller project works as the milestones of multiple tasks cannot be added in the form of a Gantt chart. Once the length of the tasks, stretch passes the segment of the Gantt chart, the functionality of the tool has been reduced. Discussion Each of the project management tools and techniques has significantly played its part in a project environment. The identified project management approaches have distinct features to evaluate project derivatives. PERT technique has been associated with critical path analysis of a project management (Xie Zhang, 2013). Such efficient project management tool can create significant visual communication among the team members creating interdependent relationships. Apart from that, PERT technique has provided efficient resource planning to mitigate any issues attached to the project tasks. On the other hand, Work Breakdown Structure has accurately figured out project deliverable and tasks to be achieved. By identifying the same, WBS has broken down the tasks into manageable smaller units (Bajgoric, Altinel, Draman, nal, 2012). Along with that, the technique has identified detailed cost estimation according to the time assigned to complete the entire project. Moreover, WBS can contribute to risk identification to reduce the risks to a manageable position. Lastly, Gantt chart has efficiently provided a visual representation of the project tasks following the timelines. Through the identification of potential events in the Work Breakdown Structure, Gantt chart can evolve the contemporary task management system establishing significant completion of tasks (Mller Sderlund, 2015). However, the efficiency of Gantt chart has been limited to smaller projects. The flexibility of scheduling has been considerable for selecting Gantt chart as one of the most instrumental project management techniques in modern project management. However each of the tools and techniques has supported the above- identified approaches to deliver suitable project management outcomes. Conclusion At the end of the discussion, one must develop a significant conclusion on the linkage between the identified project management approaches and the project management tools. Efficient project managers have recognised the size of a project and scheduling arrangement before selecting most sustainable approach for delivering effective outcomes. Therefore, the contemporary project management ideas must be set up based on the most effective project management tools. Herein, both of the identified tools such as PERT, WBS and Gantt chart can deliver significant direction to complete an entire project within the given scheduling and budget. Most of all, Gantt chart can be identified as the most significant tools of the three as the flexibility of scheduling can be included within the project according to suitability. In a given scenario, each of the three project management approaches can be taken into consideration based on the requirement of a project. References Bajgoric, N., Altinel, I., Draman, M., nal, A. (2012). Some aspects of using CASE tools in a Fusionà ¢Ã¢â€š ¬Ã‚ based application development project for production optimization.Industr Mngmnt Data Systems,102(8), 463-471. https://dx.doi.org/10.1108/02635570210445899 Colin, J. Vanhoucke, M. (2015). Developing a framework for statistical process control approaches in project management.International Journal Of Project Management,33(6), 1289-1300. https://dx.doi.org/10.1016/j.ijproman.2015.03.014 Collyer, S. Warren, C. (2009). Project management approaches for dynamic environments.International Journal Of Project Management,27(4), 355-364. https://dx.doi.org/10.1016/j.ijproman.2008.04.004 Desmond, C. (2014). Project management tools.IEEE Engineering Management Review,42(4), 11-12. https://dx.doi.org/10.1109/emr.2014.2364656 Gelbard, R., Pliskin, N., Spiegler, I. (2012). Integrating system analysis and project management tools.International Journal Of Project Management,20(6), 461-468. https://dx.doi.org/10.1016/s0263-7863(01)00044-8 Gergert, D. Ponomareva, T. (2015). Project Stakeholder Engagement: Theoretical Approaches Review.Russian Journal Of Project Management,4(1), 30-38. https://dx.doi.org/10.12737/8013 Gray, R. (2007). Alternative approaches to programme management.International Journal Of Project Management,15(1), 5-9. https://dx.doi.org/10.1016/s0263-7863(96)00014-2 Howes, N. (2011).Modern project management. New York: AMACOM. Kerzner, H. (2011).Project management. New York: John Wiley. Lefley, F. (2014). An assessment of various approaches for evaluating project strategic benefits.Management Decision,42(7), 850-862. https://dx.doi.org/10.1108/00251740410550925 Maylor, H. (2015).Project management. Harlow, England: FT Prentice Hall. Mller, R. Sderlund, J. (2015). Innovative approaches in project management research.International Journal Of Project Management,33(2), 251-253. https://dx.doi.org/10.1016/j.ijproman.2014.10.001 Raz, T. Michael, E. (2011). Use and benefits of tools for project risk management.International Journal Of Project Management,19(1), 9-17. https://dx.doi.org/10.1016/s0263-7863(99)00036-8 Redway, A. (2015). Management ToolsProject Planning Procedures.Industr Mngmnt Data Systems,85(9/10), 7-11. https://dx.doi.org/10.1108/eb057412 Rose, K. (2014). Personal Effectiveness in Project Management: Tools, Tips Strategies to Improve your Decision-making, Motivation, Confidence, Risk-taking, Achievement and Sustainability.Project Management Journal,45(2), e1-e1. https://dx.doi.org/10.1002/pmj.21398 Wysocki, R. (2009).Effective project management. Indianapolis, IN: Wiley Pub. Xie, H. Zhang, A. (2013). Approaches and Processes of the Project Management.AMR,790, 724-727. https://dx.doi.org/10.4028/www.scientific.net/amr.790.724