Literary Devices Essay Example | Topics and Well Written Essays - 250 words

Literary Devices - Essay Example Sir Arthur Conan uses the literary devise of mood to create suspense in the reader, while going through â€Å"the hound of the Baskervilles.† The author develops a ghostly, unnatural, and a supernatural mood right from the onset of the literature. For example, Dr. Mortimer is portrayed as acting in unnatural ways – for example, in his attempt to unveil the mysterious curse. This expresses a mood of ghostly nature to enhance suspense, as it is not human to be luminous (Doyle 11). Doyle (24) says, â€Å"There stood a foul thing, a great black beast, shaped like a hound† The foul thing is included to draw a fearful mood, to enhance the suspense. â€Å"To take on the father of evil himself would be too ambitious†¦you must admit the footprint was material (Doyle 37).† This line seeks to develop a mood of fear, which enhances the suspense to read on. Through the three quotes, a supernatural mood is clearly depicted. For example, he writes of a black beast à ¢â‚¬â€œ shaped like a hound, yet larger than any hound ever seen. Through developing the mood of the story, Holmes is depicted as learning new supernatural experiences, which are used to heighten the suspense developed in the reader. Through the suspense developed in the reader, their interest to keep reading is grasped. This shows how mood is used to breathe more life into the story. Pablo Neruda, in her poem â€Å"Alturas de Macchu Picchu,† presents different counts of imagery, which enhances the creativity of his work. The quote, â€Å"like a sword sheathed in meteors,† shows the imagery of earthly and heavenly objects. Also, this quote, â€Å"I plunged my turbulent and tender hand,† tries to create a picture of the author’s hand. The examples presented show that Neruda uses imagery to instill more creativity into his poems, which captivates his readers into his poetry (Hogan). The literary device of tone, as portrayed in Sarojini Naidus â€Å"the Call to Evening

Shawshank Redemption: Critical Analysis of Subcultures

Shawshank Redemption: Critical Analysis of Subcultures Critical Analysis of The Shawshank Redemption The Shawshank Redemption is a 1994 movie written and directed by Frank Darabont, featuring Tim Robbins and Morgan Freeman. The movie is a classic and is considered as one of the all-time best. The principal theme of the movie remains around the life of a prisoner, Andy, and tells us about the various circumstances and adversities faced by him and how does he manage to go through all this. The movie skillfully integrates the representation of harsh realities of the prison world and remains successful to a large extent in conveying the intended message to the viewer as to how brutal and harsh a prisoner’s life can be. The media generally portrays prison as an unpleasant and frightening place, and â€Å"The Shawshank Redemption† is a prime case that backs the medias proposal about jails. In the film, we get acquainted with the character Andy Dufresne, played by Tim Robbins, a banker who is wrongfully sentenced for killing his wife and her lover. He is indicted and is sentenced to serve two lifelong incarcerations consecutively. While attempting to survive and discover his jail personality, he meets and becomes friends with Ellis Boyd Red Redding ,which is played by Morgan Freeman, a vendor, and Brooks Hatlen, played by James Whitmore, another life prisoner, in addition to other detainees. While trying to establish his place in the jail, he develops a kind of business relation with the guards’ in charge named Captain Bryon Hadley, played by Clancy Brown and Samuel Norton, the jail Warden, among several other staff members at the Shawshank jail. The movie provides an insight into several aspects of the life in a prison. These attributes include jail society; particularly the guard subculture and detainee subculture. Likewise, the film also demonstrates the adjustments to the jail’s environment, as start, prisonization or institutionalization and finally rehabilitation. The film also gives a view of the purposes behind utilization of the jail for discipline and how it works as a system. Guard Subculture There are various types of guards in prison; these include the rule enforcer, hard liner, people’s worker, synthetic officer, and loner (Cesaroni, 2009a). The rule enforcer is a quite inflexible guard who is mainly focused on maintaining the control. These types of guards are not much interested in negotiations with the inmates; rather they are more interested in displaying their power and authority over the prisoners. The people worker type guard is an older, more seasoned guard who relies on their verbal skills and common sense instead of physical force. The ‘Synthetic officer’ is a guard who treats the inmate fairly, and follows the rules closely, depending on the situation. The loner type of guard strictly enforces the regulations and is always on the lookout to prove their skills to other guards. The Warden, Samuel Norton, is portrayed as an individuals’ specialist to start with of the movie. This is accepted in light of the fact that the Warden is indicated to be a change oriented person. The Warden is additionally indicated to be a dedicated Christian; in the scene when he is initially acquainted with the gathering of people, he clarifies I put stock in two things, discipline and the biblical canon. However as the film advances we see that the Warden Samuel Norton is an extraordinary sample of the hard liner monitor, because of different activities. The Warden demonstrates his actual nature to be that of a hardliner guard, when he plots to have Tommy Williams slaughtered so Andy does not have a shot of escaping from jail. Another case for the Warden thought to be a hardliner guard is that he is utilizing the detainees as free work, while taking influences from contending offices. The film Shawshank Redemption traces the head guard, Captain Byron Hadley to be a decent outline of the tenet authority. At the point when Captain Hadley is acquainted with the group of onlookers he is hollering at another prisoner You consume when youre advised to consume, you crap when we say you poop, you piss when we say you piss because of the inquiry When do we consume? This delineates that Hadleys part is to implement the guidelines. Hadley delights in being a horrible and amazing guard who appreciates frightfully beating the detainees. The Captain additionally beats another detainee to death on Andys first night in jail. Inmate Subculture Inmate subculture is described as the norms, beliefs, values, ideologies, symbols, and language specific to a group of inmates in prison (Ishwawan Neugebauer, 2001). We will discuss two models for inmate subculture: the deprivation model and the importation model. The Deprivation model suggests that â€Å"the prisoners suffer and get frustrated due to the absence of liberty, privacy, free access to goods and services, heterosexual relationships, autonomy and security† (Stojkovic, Stan Lovell, 1998). This theory clearly says that inmate subculture is evident through the pains of imprisonment. While the importation model says that the subculture is evident because the prisoners are replicating the outside world. This model includes the prisoner-staff dynamic, 3 types of inmates, various racial groups within the prison population, type of offence, record of recidivism (re-offending), personality differences (prior to imprisonment), power of â€Å"politicians† (top of the inmate social hierarchy), work gangs, work groups, and sexual â€Å"deviation† which would directly affect inmate subculture. Both inmate subculture models comprise of a behavior code, a power hierarchy, an economic system for illicit goods and service distributions and â€Å"argot† rules. Argot rules are a set of terms that inmates use to refer to various roles in the prison subculture .The jail language incorporates terms such as fish, rat, gorilla, center-men, merchant, ball buster, tough, real man, wolf, fag and punk. Fish is a new detainee; in the film all the new detainees are called fish by other prisoners. As the new detainees are wandering in, there is another (more seasoned) detainee who is making motions about reeling-in fish. A center-man is a disagreeable prisoner who tries to opportunist with the jail power. In the film, Andy would be a good example as he helps the guards (and the Warden) with their taxes and deals with their cash. However when gotten some information about it, Andy denies the case. Andy is likewise enjoyed by other prisoners, once they get to know him, subsequently he would not be a complete focus man. A rivulet is an alternate illustration of a center man, however in the movie Brooks is well known, and everybody likes him. A merchant is a prisoner who offers things for sale when given the chance, for this situation Red is an impeccable illustration. Red is the fellow that can get it for you, cigs, liquor, anything inside reason. A wolf is a detainee that takes the male part in sexual experiences. These people are exceptionally forceful and are not of gay person introduction outside of jail. In the movie Bogs Diamond the leader of The Sisters group is a good example of this. Prisonization/Institutionalization To really comprehend jail and how it influences the individual Goffman depicted it as an aggregate establishment. An alternate approach to ponder jail is as a position of habitation and work where a substantial number of like-arranged people, cut off from the more extensive society for an obvious time of time, together lead an encased, formally directed round of life. This is in the feeling of the controlling structure and social association in which the jail capacities. Clemmer expresses that prisonization or regulation is the methodology of socialization of a prisoner into the subculture of the jail. This procedure incorporates researching the jails subculture, for example, values, convictions and practices that test the jail staff. Despite the fact that these guidelines and subcultures are set up to restore the guilty party they may fortify a few sorts of freak conduct too. Some individuals who enter jail wont completely receive the jail subculture. People who get tied up with the jail society have a tendency to have longer sentences, flimsy identities and have a tendency to not have powerless associations with individuals on the outside of jail (Cesaroni, 2009b). The people who oppose jail society have a tendency to have shorter sentences, stable identities and genuinely great associations with individuals in the public eye. In the movie, many characters had long sentences and effectively got tied up with the prisonization impact. A prime illustration of that is the character Brooks. Streams was in the jail for a long time, been sent to Shawshank Prison in 1905. He began to consider himself a paramount man inside the jail dividers since he had been accountable for the library since 1912. However he had no significance outside of the jail, and he couldnt get a library card on the off chance that he needed to. Red said all what needed to be said when dis cussing prisonization and the dividers at Shawshank Prison the dividers are clever, first you loathe them, then you get used to them, then you require them. Streams figured out the hard path while on parole, that following 50 years of being in jail and keeping the jail societies he couldnt live in ordinary society any longer. An alternate explanation behind people to get tied up with the prisonization or systematization influences is because of Sykes hardship model (Cesaroni, 2009b). This model expresses that the anxiety and troubles are brought about by the denying states of the jail itself which at last prompt the detainees adapting to jail society components. Sykes hypotheses on hardship are not far-removed regarding states of the jail. There is an ache in entering jail significantly after a detainee conforms to their new home. They have lost their privileges of freedom and are denied from merchandise, administrations, security and the choice of a hetero relationship. Prisoners are dealt with like kids by being advised when to consume, when to work, when to rest and actually when they can utilize the washroom. The offices are a poor environment on the grounds that there are rats and a high danger of ailments because of crowdedness with different prisoners. In the film, one of the new detainees asks Cap tain Hadley when they will consume to which he reacts that you consume when we say you consume. You poop when we say you poo. You piss when we say you piss. This was one of the bitter experiences for Red in the prison. Rehabilitation Recovery is a project and an objective that the punitive framework uses to help detainees come back to society without the dread of relapse. In the past it was accepted that culprits perpetrated unlawful acts in light of the fact that they were apathetic hence the prisoners required to buckle down with the end goal them should change. It was accepted that a solid hard working attitude was specifically associated with positive social conduct; consequently instructing prisoners to buckle down was seen as an approach to change them. It is currently accepted that genuine work can prompt restoring a prisoner in light of the fact that they learn abilities and create great work propensities that can be utilized as a part of society. This can likewise help the prisoners when petitioning parole. Prisoners who buckle down while in jail are seen more great by the parole board, since the need to re-irritate is diminished. Recovery is a science and it began being seen that route in Canada in 1935. It was viewed as that keeping in mind the end goal to restore detainees expert assistance from therapists, specialists and remedial chiefs was required. This functioned admirably until around 1970, when all the rights and activities gatherings began dissenting with the utilization of mobs, killings and prisoner takings. At this point the individuals were requesting a get extreme mentality towards lawbreakers and their wayward kids. After the common turmoil of the 1970s, restoration was brought go into the contemplations of amendments in new ways, it was felt that a few detainees had a place in the group, far from the masters and not bolted away in a correctional facility. Conclusion Jail has been delineated in numerous diverse movies through the years, each of them including Shawshank Redemption, has indicated to the world that jail is appalling. Shawshank Redemption has demonstrated that jail is a fierce place by showing how distinctive guards carry on and treat the detainees, and also delineating the way the prisoners associate with each other and the courses in which they attempt to make their day by day carries on somewhat more tolerable. The film clarifies how detainees change in accordance with jail life from the launch toward the start of their sentence; to restoring the wrongdoer go into typical society and in addition prisonization or regulation the prisoners experience. The film Shawshank Redemption additionally clarified how jail is utilized for discipline purposes and demonstrated that jail can work as though it were a bit of hardware. The media has constantly portrayed jail to be a negative spot and the film The Shawshank Redemption is a prime sample. While there are a few suppositions and suggestions that can be produced using the film about society and its convictions, two appear to emerge. The main moral ramification of the movie is the way to go that society takes a utilitarian perspective of morals. Under a utilitarian methodology, choices are focused around their outcomes (Johnson, 2012, p. 154) and normal rules dont apply in this situation. There are feelings that while certain activities, all by themselves, can be viewed as untrustworthy, the society is eager to view them all the more positively inside a certain setting. Case in point, there is by all accounts an innate requirement for individuals to feel that equity has been carried out, and certain exploitative practices may be adequate in attaining that end. This can be seen throughout the movie. Boggs, the pioneer of the Sisters, is beaten until he is deadened for harming Dufresn. Dufresn escapes from jail and takes $370,000 of sick gotten, laundered cash the whole tim e. Both of these may be viewed as untrustworthy all by themselves, yet the gathering of people is eager to hail both in light of a legitimate concern for equity being served. We see this same utilitarian view in the utilization of force in the film. The Warden and the guards misuse their energy to varying degrees and the group of onlookers is intended to grimace and look askance. Then again, when Dufresn misuses his budgetary capacities in an illicit action and escape or Red takes part in carrying things into the jail, the crowd praises. In a vacuum, the majority of the demonstrations are dishonest. Notwithstanding, the activities of Dufresn and Red appear to serve, in the eyes if the group of onlookers, to offset a percentage of the ill-uses of force and development the reason for equity. Therefore, they are taken a gander at as being moral in as much as they helped meet the moral standard of equity in spite of being dishonest themselves. The second ramification is the force of moral administration. This can be seen in the response of the two fundamental gatherings, the administering force of the Warden and the guards and Dufresns gathering, to their particular pioneers. On account of the guards, we see the impact that the administration of the Warden and Hadley has over them. As was said prior, the guards are roused to act in pitiless ways towards the detainees when around the Warden and Hadley, yet we see more moral and altruistic collaborations when the guards are distant from everyone else with the detainees. Indeed Hadley changes once the spell of the Wardens initiative is broken, sobbing on and on when he is captured. Hence, one sees the length and force of the shadow that the Warden throws. Rather than the guards, one sees the positive impact that Dufresn has on Red and other detainees in their gathering. When he arrives, they are useful and sober minded, surrendered to the way things are. Notwithstanding, Dufresn demonstrates to them that moral conduct and rightness can even now exist. This starts with their initially meeting, when he requests the name of a detainee who was beaten to death. This appears immaterial to the others however serves as an image of Dufresn bringing the morals of the outside world with him into the jail. Notwithstanding all that happens amid his stay, he never loses those morals. He never loses trust. Furthermore, all the while, he raises the moral level and level of trust for all parts of the gathering. Both men lead their particular gatherings through their activities and choice making. Ones activities lead in an unscrupulous way and the other in a more moral one. Through this, it is apparent exactly how persuasive the moral choices of a pioneer and the shadow or light they cast can be (Johnson, 2012). In this way, against the setting of the microcosmic subculture of Shawshank Prison, one sees the essentialness of equity and reasonable utilization of force to American culture. The saying Power adulterates and total force ruins completely, (Johnson, 2012, p. 11) turns into a reality inside the jail dividers and the characters are left to comprehend it. Eventually and incidentally, it is the apparently exploitative deeds of Dufresn and Red (who breaks his parole to go to Mexico) that restore the parity of equity and power that the crowd is looking for and, in doing along these lines, uncover the paramount part that these moral standards play in the public eye. References Analysis Of The Shawshank Redemption Philosophy Essay. Retrieved from http://www.ukessays.com/essays/philosophy/analysis-of-the-shawshank-redemption-philosophy-essay.php Ethics. In The Free Dictionary by Farlex. Retrieved from http://www.thefreedictionary.com/ethics Glotzer, L., Lester, D.. Marvin, N. (Producers) and Darabont, F. (Director). (1994). The Shawshank  Redemption [Motion Picture]. United States: Castle Rock Entertainment. Johnson, C.E. (2012). Meeting the Ethical Challenges of Leadership: Casting Light or Shadow, fourth  edition. Thousand Oaks, California: Sage Publications Ltd. Justice. In The Free Dictionary by Farlex. Retrieved from http://www.thefreedictionary.com/ethics

Narrative of the Life of Frederick Douglass Essay -- American History

Narrative of the Life of Frederick Douglass In learning about the history of America from the colonization to the reconstruction I decided to read The Narrative Life of Frederick Douglass. Frederick was one of the very few literate slaves. He was an incredibly important character in American and African-American history. Though he was blessed with intelligence most slaves were not, he still lived the same kind of life of the typical slave. Fredrick Douglas was born in Maryland; he does not know the date of his birth, as did most slaves. He never really had a chance to know his mother, only having seen her four or five times. Fredrick taught himself how to read and write despite it being against his slave-owners wishes. He could not let his knowledge be known to anyone except for other slaves. Fredrick saw his knowledge of words both as a blessing and a curse. White men were given supreme power over their black slaves and it corrupted their character. Most African Americans of the early to mid-nineteenth century experienced slavery on plantations similar to the experiences described by Frederick Douglass; the majority of slaves lived on units owned by planters who had twenty or more slaves. The planters and the white masters of these agrarian communities sought to ensure their personal safety and the profitability of their enterprises by using all the tactics-physical and psychological-at their command to make slaves obedient. Even Christianity was manipulated in a way that masters communicated to their slaves that God had commanded them to obey their masters. People like Frederick Douglass who preached abolition of slavery, only had to nurture the already existing spirit within slaves to strive for freedom. Only a tiny fraction of all slaves ever took part in organized acts of violent resistance against white power. Most realized as Frederick Douglass did that the odds against a successful revolt were very high, and bitter experience had shown them that the usual outcome was death to the rebels. Consequently, they devised safer ways to resist white dominance. For Frederick Douglass, it was clear that his way of fighting the power was to become educated so that he may better understand his situation. However, he described that knowing that: "wit†¦[was] the pathway from slavery to freedom." (Pg. 20) "†¦Reading†¦ enabled me to utter my thoughts, and... ...obey his master-to do as he is told to do." (Pg. 57) He was referring to the wrongfulness of his wife's attempt to educate Frederick Douglass. This was the view held by most whites toward African Americans. Consequently, other adjectives such as: lazy, irresponsible, childlike, and simple-minded were used by whites to describe the African American character. This portrayal stole the African American sense of independence and created the false image of black childlike dependence on their white masters. That combined with the fact that most African Americans were born into slavery disallowed them any experience of freedom or of Africa by which they may make comparisons to their situation of total bondage. The slave owners struggle to control the slave brought out an evil in them that cannot be brought out by any things. The slaves’ struggle for freedom and the suppression by their masters broke their spirit, which is a large part of human character. America would not have grown to be so great in such a short time without slavery, because of the economic value of it. But, it would not have been such a violent society then or such a violent society now if slavery had never existed.

Workplace Problems

A: Britani Franklin, Kellie Johnson, Jennifer Vendura, & Rob Vendura PSY/435 August 7,2013 Carla Kuhiman I/O Psychology and Workplace Problems Many individuals struggle with feeling overworked on the job. Unbalanced workloads lead to several negative aspects that can hurt an organization’s ability to function as a cohesive unit. In this analysis, Team A will relate Kellie’s issue of feeling overworked. Team A will then choose a research method that will best solve the issue, while applying more specific methods to gain the clearest picture possible of the problem at hand.Finally, Team A will relate the ethical considerations that must be iincluded in providing an applicable solution. Work Related Problem: Unbalanced Workload- Kellie Speaks Working in one of the largest school districts in Colorado, one would think the communications department would be at the top of the priority list when it comes to the number of people they would have to keep those gears moving. Being a five-year veteran of the establishment, I have seen people come and go. I am what you call the utility player.I spend my day trying to figure out what everyone else needs to be happy. My technical job title is ‘Community Relations Coordinator. ’ I spend 40 to 50 hours a week supporting the public information officer and the community relations officer- setting their meetings, filling their calendars, and reminding them of what they need to do and where they need to be. I need to make them look good. A great deal of my job consists of answering the phone for them and the Superintendent of Schools.These phone calls usually are upset parent's that want to talk about why little Johnny didn’t get into the special art class they requested or, ‘did you realize there is 3 inches of snow on the ground and why didn’t we cancel school today? ’ I also have two videographers that I have to send out to shoots at locations tthroughout our 900 mile distric t. We have over 84 schools. The Superintendent runs the district like a Fortune 500 company. This can have its positives and negatives. I understand that having over 6,000 employees could compel an individual to run things like this- but ometimes it can also make it very impersonal. I am the only support staff these people have. I do, however, get a 3o minute lunch that I usually take at my desk. This is usually a delicious frozen entree or leftovers of some sort that I bring from home. Even when I skip lunch I still cannot find enough time in the day to finish my tasks, which mearns they get pushed back to the next day. This can be very frustrating as the tasks pile up. By the end of the week, sometimes I have more than I started with and I end up taking work home.For these reasons, my case is relevant to the study of I/O psychology; unbalanced workloads are not limited to my job and solutions to this will be welcomed by individuals in every employment sector. Analyzing the Issue: Research Method(s) If Team A was composed of Industrial/Organizational psychologists, we would begin our analysis of Kellie’s workplace problem with a research question. Research questions can be general or specific, but to ascertain a better understanding of the problem a specific question is of greater benefit (Spector, 2012).To this end, our research question would likely be ‘What is causing employees to feel overburdened by an unbalanced workload? ’ In this way, Team A has defined the objective of the study and identified the specific problem at issue (Spector, 2012). Our next step is to decide what research method is most appropriate in addressing the issue. Although a thoroughly balanced study generally includes qualitative and quantitative research methods- with quantitative methods used to garner empirical support for qualitative findings- Team A will opt to employ only qualitative methods at this point (Mahoney ; Goertz, 2006).We must also take into acco unt that the issue will be perceived differently by employees, supervisors, and ourselves as the psychologists researching the issue (Stagner, 1982). Our research question has a high degree of subjeactivity; what is considered too much work by one employee can be considered entirely manageable by another. For these reasons, Team A will use more than one method of qualitative research with the goal of reaching a realistic and applicable solution. Qualitative methods involve several mearns of studying organizational issues.Among these are observational studies, case studies, interviews (Spector, 2012). Team A will begin by conducting structured oral interviews of employees and supervisors. In this way, we will begin to paint a broad picture of the issue with the goal of identifying different employee perspectives to be reconciled through other research methods in the future (Rojon, McDowell, ; Saunders, 2011). Conducted face to face with staff members, Team A will pose specific questi ons in the interviews.Likely questions include: What is your hourly wage or salary? How many hours per week do you work? What are your specific tasks and duties? Do you have support staff? Does your company have an employee break/lunch ppolicy and if so, is it enforced? Do you have one supervisor, or do you report to several? Do you feel you have adequate technological resources and/or support? How well do you get along with your fellow employees? How many, if any, tasks are left incomplete each day? Why are those tasks left unfinished?Although the above list of questions is hardly exhaustive, Team A will get an idea of the varying perspectives bound to be held by different employees in this manner. Following the collection of interviews, Team A will attempt to interpret the results through content analysis (an evaluation of the details and implications of the aanswers received) and thematic analysis in which recurring themes among responses will be identified (â€Å"Siop. org†, 2013). Because Team A wants to get the clearest picture of the issue possible, observational research methods will also be used.Team A will rely on the participant observation method whereby we will become members of the workplace group by conforming to the collective culture of the cohort. In this way, sharper insight will be gained into the cohort’s methods, group and individual motivation, behavior, and emotions (Mahoney ; Goertz, 2006). This method has inherent problems Team A will try to avoid. For example, observer bias can come into play; events are often interpreted through the lens of an individual’s unique experiences and are not always objective in relation to solving problems.Team A is also aware of the problem of reaactivity- a phenomenon by which an observer inadvertently influences the environment he or she is observing (â€Å"Ucdavis. edu†, n. d. ). Team A hopes that by utilizing structured oral interviews and participant observation enough d ata will be gathered in relation to the problem of an unbalanced workload. The data gathered will then be subjected to more quantitative methods to garner empirical support for our findings (Mahoney ; Goertz, 2006). Tthroughout the process, Team A will remain cognizant of the ethical considerations to be taken into ccount. Ethical Considerations When considering the problem of unbalanced workloads in the workplace, Team A came across some ethical considerations. According to Industrial and Organization Psychology, there are six ethical codes an I/O psychologist must consider when researching an issue (Spector, 2012). These are competence, integrity, professional and scientific responsibility, respect for others and dignity, concern for others’ welfare, and social responsibility. Competence describes the work an I/O psychologist has the ability to perform.Integrity describes that an I/O psychologist is fair and honest when he or she deals with others. Professional and scientif ic responsibility describes an I/O psychologist’s ability to maintain professional behavior. Respect for rights and dignity describes that an I/O psychologist respects the confidentiality of other’s privacy. Concern for others’ welfare describes an I/O psychologist’s attempt in helping others through professionalism. Social responsibility describes that an I/O psychologist uses his or her professionalism to benefit society (Spector, 2012).In studying these principals, Team A decided that the ethical considerations most important in this research case are competence, professional and scientific responsibility, and concern for others’ welfare. Competence in this research case is the most important ethical consideration. To begin, Team A has to make sure that they are all willing and able to carry out this study. In being competent, one shows that he or she is able and ready to carry out tasks necessary to complete and carry out the goal- which is in this case how to remedy an unbalanced workload in Kellie’s workplace.The second consideration, professional and scientific responsibility, is important because in researching this case it may be easy to gain biased opinions of views. It may be hard to remain unbiased and consider how the people being overworked can benefit from figuring out how to give the people being underworked more tasks. Team A could easily gain a biased opinion of those not carrying their weight and slant the research unfairly. In remaining professional, all parties will be heard and spoken for, and professionalism can help to make sure that happens.The last element, concern for others’ welfare, is the best way to describe how Team A can come to a conclusion in this case study. The main goal is to make life easier for those in the workplace. Team A believes that helping those who do not carry their weight mearns to show them the value of hard work and how they can continue this lesson in life to better themselves. That is what this last ethical consideration entails. Team A, as professionals, commits to the ethical consideration of using their professionalism to help and better others.In this case study, the end goal is to help and improve others by taking some pressure off those who have been given heavy loads of work and giving more work to those individuals deemed underutilized. In conclusion, Kellie is hardly alone in feeling overworked on the job. Although Kellie’s story is a common one, solutions need to be found. In this analysis, Team A related in detail the ways in which Kellie feels overburdened at her place of employment. Team A then went on to choose qualitative research methods, including structured oral interviews and participant observation, to further analyze the issue.Finally, Team A highlighted specific ethical considerations- competence, professional and scientific responsibility, and concern for others’ welfare- to take into account while c onducting research on the issue. References Mahoney, J. , ; Goertz, G. (2006). A tale of two cultures: Contrasting quantitative and qualitative research. Political Analysis, 14, 227-249. Rojon, C. , McDowell, A. , ; Saunders, M. N. (2011). On the experience of conducting a systematic review in industrial, work, and organizational psychology: Yes, it is worthwhile.

Nike Essay

1.What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? Answer: The cost of capital refers to the maximum rate of return a firm must earn on its investment so that the market value of company’s equity shares will not drop. This is a consonance with the overall firm’s objective of wealth maximization. WACC is a calculation of a firm’s cost of capital in which each category of capital is proportionately weighted. All capital sources – common stock, preferred stock, bonds and any other long-term debt – are included in a WACC calculation. All else equal, the WACC of a firm increases as the beta and rate of return on equity increases, as an increase in WACC notes a decrease in valuation and a higher risk. The WACC of a firm is a very important both to the stock market for stock valuation purposes and to the company’s management for capital budgeting purposes. In an analysis of a potential investment by the company, investment projects that have an expected return that is greater than the company’s WACC will generate additional free cash flow and will create positive net present value for stock owners. Thus, since the WACC is the minimum rate of return required by capital providers, the managers in the company should invest in the projects which generate returns in excess of WACC. We do not agree with Joanna Cohen’s calculation regarding the WACC from 3 aspects: 1) When Joanna Cohen computed the weights or proportions of debt and equity, she used the book value rather than the market value. The book values are historical data, not current ones; on the contrary, the market recalculates the values of each type of capital on a continuous basis, therefore, market values are more appropriate. 2) The cost of debt should not be calculated by â€Å"taking total interest expense for the year 2001 and dividing it by the company’s average debt balance. These historical data would not reflect Nike’s current or future cost of debt. 3) She mistakenly used the average Beta from year 1996 to 2001. The average Beta could not represent the future systemic risk, and we should find the most recent Beta as Beta estimate in this situation. 2.If you do not agree with Cohen’s analysis, calculate your own WACC for Nike and be prepared to justify your assumptions. Answer: 1)Weights of equity and debt: Market value of equity = Current share price x Current shares outstanding = $42.09 x 271.5m = $11,427.44m Due to the lack information of market value of debt, we could use the book value for calculation: Market value of debt = Current portion of long-term debt + Notes payable + Long-term debt = $5.4m + $855.3m + $435.9m = $1,296.6m We = $11,427.44m/($11,427.44m +$1,296.6m) = 89.81% Wd = $1,296.6m/($11,427.44m +$1,296.6m) = 10.19% 2)Cost of Debt: We can calculate the current yield to maturity of the Nike’s bond to represent Nike’s current cost of debt. Po=$95.6 N=20Ãâ€"2=40 PAR=$100 PMT=$100Ãâ€"6.75%/2=3.375 By using financial calculator: r=3.58%(semiannual) So Rd=3.58% x 2 = 7.16% 3)Cost of Equity: Use 20-year T-bond rate to represent risk-free rate, as the rate of return of a T-bond with 20 years maturity is the longest rate which is available right now. So Rf=5.74% Use a geometric mean of market risk premium 5.9% as Market Risk Premium As we mentioned in Q1, the most recent beta will most relevant in this respect, so we will use B=0.69 Re=Rf+B(Market Risk Premium) =0.0574 + 0.69Ãâ€"0.059 = 9.81% 4)WACC: Use tax rate = US statutory tax rate + state tax = 35% + 3% = 38% WACC=Wd x Rd x (1-T) + We x Re = 10.19% x 7.16% x (1- 38%) + 89.81% x 9.81% = 9.26% 3.Calculate the costs of equity using CAPM, and the dividend discount model. What are the advantages and disadvantages of each model? Answer: 1)Cost of Equity using CAPM: Market Risk Free Rate (Rf)= 5.74% (20-year yield on US Treasuries) Beta (B) = .69 (most recent beta used as most relevant beta to calculate Nike’s valuation) Market Risk Premium = 5.9% (Geometric Mean used as Historic Equity Risk Premium) Cost of Equity using CAPM = Re = Rf + B(Market Risk Premium) Re = 9.81% = 5.74% + .69(5.9%) Advantages: -CAPM includes systematic risk by incorporating Beta in the Cost of Equity formula. Using the stock’s Beta to calculate equity will provide a return rate based on how risky the stock is perceived by investors. The higher the risk, the higher the Beta will be and will result in a higher required rate of return on the investment. Systematic risk can’t be diversified away, while unsystematic risk can be diversified away by maintaining a diversified portfolio. -CAPM proves to be a better model than others such as the Dividend Discount Model, because the valuation behind CAPM is based on risk and rates of return while the Dividend Discount Model relies heavily on dividends and a growth rate. Disadvantages: -When using CAPM, it can be difficult determining the estimate of Beta. Different investments may involve different risks and the Beta used in calculating CAPM should reflect the appropriate amount of risk relating to the specific investment. -The risk free rates used in calculating CAPM are continually changing as with the values of the investments in the market which make up the market risk premium. The constant changes in the market can have negative impacts on the valuation of CAPM. -Another disadvantage in using the CAPM in investment appraisal is that investment appraisal is premised on a long-term time horizon, whereas CAPM assumes a single-period time horizon, i.e. a holding period of one year. While CAPM variables can be assumed constant in successive future periods, market reality often shows that this is not the case. 2)Cost of Equity using the Dividend Discount Model: Growth (g) = 5.5% Dividend (D0) = $.48 Share Price (P0) = $42.09 Cost of Equity using Dividend Discount Model = Re = (D0 x (1+g)/P0) +g Re = 6.7% = (.48 x (1+5.5%)/42.09+5.5% Advantages: -Using the Dividend Discount Model is very easy to calculate because the formula is not complicated. There are no real technical or difficult calculations involved with using this method. -The inputs that are used in the calculations of this model are market information and can be easily obtained. -The Dividend discount model attempts to put a valuation on shares, based on forecasts of the sums to be paid out to investors. This should, in theory, provide a very solid basis to determine the share’s true value in present terms. Disadvantages: -The Dividend Discount Model relies heavily on the growth rate to calculate the rate of return. If growth slows or becomes temporarily negative, it can result in calculations which may not truly represent future expected returns. -This model is calculated using dividends and can’t be used in instances where a company is not paying dividends. This is also a disadvantage for any investment without a reasonably constant growing dividend stream. -The Dividend Discount Model is very sensitive to minor changes in input figures. If the growth rate changes by 1 % the cost of equity will also change by that rate. -The Dividend Discount Model does not explicitly consider the risks which the company faces. 4.What should Kimi Ford recommend regarding an investment in Nike? Answer: In order for Kimi Ford to make a decision regarding an investment in Nike, she must compare an accurately calculated WACC to the sensitivity of equity  value to discount rate chart shown in Exhibit #2. The sensitivity chart in Exhibit #2 states that at a discount rate of 11.17%, Nike’s current share price is fairly valued at $42.09. If a discount rate were to be calculated below 11.17% then the Nike shares would be under-valued in the current market, but if their discount rate were higher than the 11.17% Nike share price would be considered over-valued when compared to the current share price. When we calculated Nike’s discount rate, we determined that their appropriate WACC should be 9.26%. Since this WACC of 9.26% is below 11.17%, we believe that Nike’s shares are currently under-valued in the market. We believe that Nike’s equity value based on the WACC of 9.26% should fall somewhere between $55.68 and $61.25. Kiki Ford should recommend adding Nike sh ares to the NorthPoint Large-Cap Fund based on our analysis. 03/03/2011 CASE OVERVIEW Kimi Ford is a portfolio manager at a large mutual-fund management firm called, NorthPoint Group. Ford is considering the addition of Nike Inc. to the Large-Cap Fund at NorthPoint Group. Nike’s share price has notably declined since the beginning of the year. Her decision whether or not to add Nike to the portfolio should be made by looking at the 2001 fiscal year end 10-K report. In 1997 Nike’s revenues plateaued around $9 billion while net income had fallen from around $800 million to $580 million. Also, from 1997-2000 Nike’s market share in U.S. athletic shoes fell from 48% to 42%. Supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue in recent years. At the June 28, 2001 analyst meeting Nike planned to add both top-line growth and operating performance. One goal was to develop more mispriced ($70-$90) athletic shoes and the other to push its apparel line. At this meeting a target long-term revenue growth rate between 8%-10% was given and an earnings-growth target above 15%. After reviewing all the analysts’ reports about the June 28th meeting Ford  still did not have a clear picture of how to value Nike. Ford then performed her own sensitivity analysis which revealed Nike was undervalued at discount rates below 11.17%. WHAT IS THE WACC? A firm derives its assets by either raising debt or equity or both. There are costs associated with raising capital and WACC is an average figure used to indicate the cost of financing a company’s asset base. More formally, the weighted average cost of capital (WACC) is the rate that a company is expected to pay to debt holders and shareholders to finance its assets. Companies raise money from a number of sources so the WACC is the minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital. WACC is calculated taking into account the relative weights of each component of the capital structure which means it is the proportional average of each category of capital inside a firm. This rate, also called the discount rate, is used in evaluating whether a project is feasible or not in the net present value (NPV) analysis, or in assessing the value of an asset. WACC = [Wdebt * Kdebt * (1-t)] + [Wequity * Kequity] + [Wpreferred * Kpreferred] K = component cost of capital W = weight of each component as percent of total capital t = marginal corporate tax rate WHY IS IT IMPORTANT TO ESTIMATE A FIRM’S COST OF CAPITAL? The cost of capital is an important issue from the perspective of management while taking a financial decision. We can list some basic issues related to the importance of WACC and its interpretation by firms: * The importance of the WACC is in its relation to the evaluation of projects. For a project to be feasible, not just profitable, it must generate a return higher than the cost of raising debt (Kd) and the cost of raising equity (Ke). WACC is affected not only by Re and Rd, but it also varies with capital structure. Since Rd is usually lower than Re, then the higher the debt level, the lower the WACC. This partly explains why firms usually prefer issuing debt first before they raise more equity. As part of their risk management processes, some companies add a risk factor to the WACC in order to include a risk cushion in their project evaluation. * The cost of capital is also important for the management while taking a decision about capital budgeting. Naturally, the project which gives a higher (satisfactory) return on investment compared to the cost of capital incurred for its financing would be chosen by the management. Cost of capital is the key factor in deciding which project to undertake out of different opportunities. * The cost of capital is significant in designing the firm’s capital structure. It will direct the management about adopting the most appropriate and economical capital structure for the firm which means the management may try to substitute the various methods of finance to minimize the cost of capital so as to increase the market price and the earning per share. * The cost of capital is also an important factor for taking a decision about the soundest method of financing for the company whenever the company requires additional finance. The management may try to catch the source of finance which bears the minimum cost of capital. * The cost of capital can be used to evaluate the financial performance of the top management by comparing actual profitability’s of the projects and the projected overall cost of capital and an appraisal of the actual cost incurred in raising the required funds. DO WE AGREE WITH JOANNA COHEN’S WACC CALCULATION? WHY OR WHY NOT? We do not completely agree with Joanna Cohen’s calculation of WACC. There are  several problems in her calculation; * In Cohen’s calculation, she used the book value for the weights of each capital structure component (debt and equity). Book value of equity should not be used when calculating cost of capital. Instead she should have calculated the market value of equity. Also, she should have discounted the value of long-term debt that appears on the balance sheet to find the market value of debt (even if the book value of debt is accepted as an estimate of market value). * Also, she should have considered the preferred stock while calculating the weights of the components of capital structure (the redeemable preferred stock is relatively small in Nike’s capital structure so it doesn’t affect the weights). * Another problem with her calculation is about the cost of debt. Cohen used a cost of debt which is even lower than treasury yield. In common sense, a company, even it might be a large AAA firm, should be risky than US government. Cost of debt should be calculated by finding the yield to maturity on 20-year Nike Inc. debt with current coupon rate paid semi-annually instead of by taking total interest expense for 2001 and dividing it by the company’s average debt balance. USING SINGLE OR MULTIPLE COSTS OF CAPITAL IS APPROPRIATE FOR NIKE INC.? Even Nike Inc. has multiple business segments such as footwear, apparel, sports equipment and some non-Nike-branded products (which accounts for relatively small fraction of revenues), we assumed Nike Inc. to have a single cost of capital since its multiple business segments are not very different and would experience similar risks and betas. WHICH EQUITY RISK PREMIUM SHOULD BE USED TO DETERMINE THE COST OF CAPITAL? For the cost of capital, the geometric mean is a better alternative to the arithmetic mean. Furthermore, the geometric mean is a more conservative  measure to use compared to the arithmetic mean. The average market risk premium has fluctuated by large amounts in short time periods from 1926-1999. 1926-1929 saw high market risk premiums; however, the 1930s and 1970s saw very low market risk premiums. Therefore, we use the geometric mean since it is a better measurement compared to arithmetic mean when the measured period is longer and contains more fluctuations. VALUE OF EQUITY, VALUE OF DEBT AND WEIGHTINGS OF EACH COMPONENT | Value(in millions $)| Weight| Current Portion of Long term Debt| 5.40| 0.04%| Notes Payable| 855.30| 6.73%| Long-Term Debt| 416.72| 3.28%| Total Debt| 1,277.42| 10.05%| Equity| 11,427.44| 89.95%| Table 1. The weight of debt and equity in total capital of Nike CALCULATION OF THE COST OF EQUITY UNDER DIFFERENT METHODS AND ADVANTAGES AND DISADVANTAGES OF EACH METHOD 1. Capital Asset Pricing Model (CAPM) Under CAPM we can find the cost of equity as; Ke = Rf + Betai * Equity Risk Premium The first issue is to find an appropriate risk-free rate. We think the 20-year yields on treasures would be the one because NIKE is assumed to be operated for such long time, according to the revitalizing strategy proposed by the management and the long-term debt issued. Next is to determine the beta. The historic betas has been generally decreasing, and we assume it is the market condition and management`s purpose that make NIKE to be a defensive company. Furthermore, we find that the competitors such as K-Swiss and Lacrosse also have beta less than one.  So rather than the average, we use the YTD beta into calculation. On the other hand, since the beta has been found to be on average closer to the mean value of 1, which is the beta of an average-systematic-risk security, we calculate the adjusted beta, giving two-third weight to the YTD beta and one-third weight to 1. Regarding the risk premium, we use the geometric mean since it is a better measurement compared to arithmetic mean when the measured period is longer and contains more fluctuations. Combining the above information, we calculate the cost of equity as follows: Using YTD Beta => 5.74% + 0.69*5.9% = 9.81% Using Adjusted Beta => 5.74% + [(2/3)*0.69 + (1/3)*1)]*5.9% = 10.42% Advantages: * It provides an economically grounded and relatively objective procedure * It concentrates on the systematic risk that investors can`t avoid, rather than unsystematic risk that can be avoided through diversification * It is suitable for company that doesn`t pay dividend * It is widely used. Disadvantages: * The assumptions may not be realistic. For example, investors may not be all risk averse and rational that holds efficient portfolio * Investors may concern more than just market risk. 2. Dividend Discount Model (DDM) Under DDM we can find the cost of equity as; Ke = (D1/P0) + g Ke = (0.48*1.055/42.09) + 5.5% = 6.70% Here we assume NIKE will pay dividend at constant growth rate of 5.5% which forecasted by Value Line, so we use the Gordon growth model to derive required rate of return. Advantages: * It is simple and widely used * Can be used to infer implied required rate of return * It is helpful to perform a sensitivity analysis on the inputs Disadvantages: * It is not suitable for company that doesn`t pay consistent dividends or the dividends are not tied to profitability * It is suitable for only matured company 3. Earnings Capitalization Ratio (ECM) Under ECM we can find the cost of equity as; Ke = E1/P0 Ke = 2.32/42.09 = 5.51% Advantage: * Simple Disadvantages: * It assumes the earnings would be the same in the future, which may not be true * It doesn`t take the growth of company into consideration. Cost of Equity| | | CAPM| | | | Risk-free Rate| 5.74%| | Equity Risk Premium| 5.90%| | Year-to-Date Beta| 0.69| | Adjusted Beta| 0.79| | Cost of Equity with YTD Beta| 9.81%| | Cost of Equity with Adjusted Beta| 10.42%| | | | DDM| | | | Current Dividend| 0.48| | Growth Rate| 5.50%| | Current Stock Price| 42.09| | Forecasted Dividend| 0.5064| | Cost of Equity| 6.70%| | | | ECM| | | | Consensus Earnings Estimate| 2.32| | Current Stock Price| 42.09| | Cost of Equity| 5.51%| | | | Build-up Method| | | | Risk-free Rate| 5.74%| | Equity Risk Premium| 5.90%| | Cost of Equity| 11.64%| Table 2. Cost of Equity under different methods WHICH RATE AS RISK FREE RATE IS BEST FOR NOTES PAYABLE AND LONG-TERM DEBT? For long term debt, the 20-year yield on U.S. Treasuries is best as the risk free rate. Considering the long time horizon of Nike, a 20-year bond is property. And also, it is comparable to the current 25-year bond which Nike issued 5 years ago. Although Nike’s current bond is 25 years, we could consider it as a 20-year bond issued this year, and use the current price to calculate the 20-year bond YTM. And for short term debt, because the note payable was a major portion in the debt structure, the 1-year treasuries would be preferred as risk free rate. COST OF DEBT CALCULATION FOR NIKE We could not agree with Cohen’s analysis. Because Cohen used a cost of debt which is even lower than treasury yield. In common sense, a company, even it might be a large AAA firm, should be risky than US government. First, Cohen’s emphasis that last year, the effective cost of debt of Nike was less than treasury yield due to its Japanese Yen notes. However, the rates of debt based on currency change are unstable and non-repeatable. We could reasonable consider that Nike’s last year’s low cost of debt is a kind of arbitrage by chance. Second, to calculate the cost of debt, market value of debt should be used rather than the book value used by Cohen. The market value of debt is compounded by the current portion of long-term debt, notes payable, and long- term debt discounted at Nike’s current coupon. Therefore, we would like to recalculate the cost of debt. Cost of debt was calculated by using the current liquidated 20-year bond of Nike, Inc. with a 6.75% coupon semi-annually. Then we obtain a cost of long term debt before tax as 7.17%, and cost of short term debt before tax as 5.02%. As shown above in Table 1, short term debt took a significant portion in Nike’s debt structure; therefore, we use a weighted cost of debt to combine both long term and short term debt effects as in following equation: Here is the weight of short-term debt, while is the weight of long-term debt. And both cost of short-term and long-term debt are after tax. Cost of Debt| | | Long Term Debt| | | | Coupon Rate| 6.75%| | Time to Maturity| 40| | Current Stock Price| $95.60| | Cost of Debt| 7.17%| | After Tax Cost of Debt| 4.44%| Short Term Debt| | | | 20-year Yield| 5.74%| | 1-year Yield| 3.59%| | Risk Premium| 1.43%| | Tax Rate| 38.00%| | Cost of Debt| 5.02%| | After Tax Cost of Debt| 3.11%| Final Weighted Cost of Debt After Tax| 0.36%| Table 2. Cost of debt WHAT IS OUR WACC CALCULATION FOR NIKE? Under different methods, we would obtain different cost of equity, then, definitely different WACCs which range from 5.31% to 10.83%. However, no matter which method we use, the stock price of Nike is undervalued currently. WACC| | | | Under CAPM with Adjusted Beta| 9.73%| | Under CAPM with YTD Beta| 9.18%| | Under DDM| 6.39%| | Under ECM| 5.31%| | Under Build-up Method| 10.83%| Table 4. Weighted Average Cost of Capital As shown in Table 5, the actual implied discount rate by current price is 11.17%, which is significantly beyond the range of WACCs we calculated and presented in Table 4. Therefore, in our analysis, Nike’s price would be considered as undervalued. Discount Rate| Equity Value| 8.00 %| $ 75.80| 8.50 %| 67.85| 9.00 %| 61.25| 9.50 %| 55.68| 10.00 %| 54.92| 10.50 %| 46.81| 11.00 %| 43.22| 11.17 %| 42.09| 11.50 %| 40.07| 12.00 %| 37.27| Table 5. Sensitivity test on WACCs RECOMMENDATION This graph shows the estimated value provided under different WACCs, and NIKE is currently trading at 42.09 with corresponding 11.17% WACC. So if the calculated WACC is below 11.17%, the estimated value would be higher than the current price and NIKE is undervalued; if the calculated WACC is beyond 11.17%, the estimated value would be lower than the current price and NIKE is overvalued. After adjusting the possible mistakes that Joanna made, the table shows the calculated WACC under each method: Method| WACC| CAPM (Adjusted Beta)| 9.73%| CAPM (YTD Beta)| 9.18%| DDM| 6.39%| ECM| 5.31%| Build-up| 10.83%| We can see none of them is above 11.17%, indicating NIKE is currently undervalued and Ford should add NIKE to the NorthPoint Large-Cap Fund. However, it is important to keep monitoring the revitalizing strategy that the management offered, since the future market condition may have huge impact on this strategy and hence, predicted future economic income. NorthPoint Group is a mutual fund management firm who has the preference on investing in Fortune 500 companies, such as EXXONMobil, GM, McDonald’s 3M and other large-cap. If we look back to a decade ago, the fund had performed extremely well compared to the market in general (we refer S&P500 to represent the market). Kimi Ford was the portfolio manager in NorthPoint Group, who was concerned about whether or not to add Nike, Inc. shares into her fund. Since net income and market share had been fallen from 1997, a new strategy was proclaimed by the Nike management team during the meeting held in June, 2001: First, highly priced products are no longer their only target, now they would develop the midpriced segment so that more customers will be able to afford it. Second, another way to boost the revenue is to focus on its apparel line, which they found out to be profitable. Finally, Nike needs to reduce its costs by exerting more effort on expense control. Company executives were optimistic about the long-term revenue, expecting an 8%~ 10% growths and earnings growth above 15%. Analysts had different opinion about the company prospects; Lehman Brothers suggested a strong buy while UBS and CSFB recommended a hold. Meanwhile, Ford wanted to make her own forecast so she developed a discount cash flow to determine that, at a discount rate of 12%, Nike was overvalued at its current price $42.09 and undervalued if the discount rate was below 11.17%. She asked her assistant, Joanna Cohen, to calculate the company’s cost of capital precisely. On the report, Joanna Cohen used WACC to calculate the cost of capital, where she adopted book values to obtain a proportion of 27% of debt and 73% of equity. For cost of debt, she took total interest expense divided by average debt balance which resulted lower than treasury yields. For cost of equity, she used 20-year Treasury bond as risk-free rate and 5.9% as market premium. Moreover, she divided each division by revenue, deciding to use one overall WACC. At the end, she came to a conclusion that the cost of capital for Nike, Inc was 8.4%.