Kathryn Marie Dudley in The End of the Line–lost jobs, New Lives in Postindustrial America depicts in graphic details the sense of tragedy when a worker loses a job, and the devastation that comes when a factory employing thousands of workers closes down. “When the closing of a local machine tool factory forced my grand father into early retirement, I saw in his loneliness why the loss of an industrial job can be so devastating”(Dudley.xi). Kenosha autoworkers have undergone a similar tragedy, when Chrysler stopped building cars in Kenosha. Kenosha witnessed a dramatic transformation from early 1900 onwards, and claimed 7.2 percent of domestic car market, especially after American Car Corporation (AMC) came into existence. During 1960, Kenosha became the largest hub of employment in Wisconsin with almost 15,000 labor force constituting 40 percent of the city’s labor force. The working class transformed into blue collar workers. They had aspirations, hopes and dreams. They believed in work ethic of success. They believed in American dream. However, since their displacement and closure of factory their world came to an end. At the macro level, the American society was also changing structurally. Dudley writes, “A growing ethnography of plant closings show us that displaced workers often develop biting critiques of American industry in the aftermath of a shutdown. Yet virtually no attention has been paid to the other side of these cultural conversations: the side that does not mourn the loss of old line-manufacturing and is, in fact glad to see it go” (p.xxiv).

A Aneesh in Virtual Migration: The Programming of Globalization “contrasts the account of embodied migration with the fast growing but little researched virtual migration that doesn’t require workers to move in physical space”(A.Aneesh.1) This is in fact migration without the hassles of body shopping, visa requirements, alien status and every thing else that goes in the discourse on migration. However, the impact of this phenomenon on society and economy need to be investigated, because today we are in the age of programming that defines current mode of capital-labor relationship. Speaking of the concerns of labor unions and other anti-globalists Aneesh writes, “… the concerns are minor revolts against continuous of the social to the economic. Job displacements, endless demands for retraining, perceived job insecurity, and the demand for continuous flexibility by a growing “flexible” economic system have escalated disruptions in the social realm” (p.16).

David Harvey has explored the neo-realist agenda that originated in the eighties when Volcker, Reagan, Thatcher and Deng Xiaoping revived the minority arguments and turned them majoritarian. (p.2). A deeper examination reveals the perspective that defined neo-realism agenda. It was in fact the global capitalism hegemony that was lurking in the background, even as a number of factors catapulted the agenda to the mainstream. “The restructuring of state-forms and of international relations after the Second World War was designed to prevent a return to the catastrophic conditions that had so threatened the capitalist order in the great slump of 1930s. It was also supposed to prevent the re-emergence of inter-state geopolitical rivalries that has led to the war. To ensure domestic peace and tranquility, some sort of class compromise between capital and labour had to be constructed” (p.9-10). This idea is best expressed in an influential text written by eminent social scientists Robert Dahl and Charles Lindblom in 1953 who argued in favor of a right blend of state, market and democratic institutions to guarantee peace, inclusion, well being and stability as according to him both capitalism and communism had failed in their raw form. (p.10)

The neo-realism impact appears neo-capitalism in its latest avatar, only more rigorous than ever before. New forms of labor and the labor markets have been discovered via new technologies that makes physical migration redundant. Cross border trade restrictions and other restrictions too have been made redundant with global trade regime in force. The north and south divide is today even more acute as the world has become unipolar regime after the breakdown of Soviet Union. The USA has mandated a policing role for itself to let the icons of capitalism prosper unhindered.

The capital has accumulated in fewer hands since the 1980s. “Almost certainly, with the Bush administration’s tax reform now taking effect, the concentration of income and wealth in the upper echelons of society is continuing apace because the estate tax (a tax on wealth) is being phased out and taxation on income from investments and capital gains is being diminished, while taxation on wages and salaries is maintained” (p.16-17) We find the same pattern of concentration of wealth and capital in fewer hands. The top one per cent of income earners in Britain has doubled their income from 6.5 percent to 13 percent since 1982. A small and powerful oligarchy arose in Russia after neo-liberal shock therapy was administered to it in 1990s. In China too extraordinary wealth and income disparity has occurred since its liberalization. People like Carlos Slim in Mexico discovered themselves in the fortune list of wealthiest overnight.(p.17)

The new form of global capitalism has culturally and morally displaced as well as impacted hundreds of thousands of workers across the globe, whether it is Kenosha automobile industry or the Silicon Valley. Displacement causes permanent dislocation from place and emotional ties with friends and neighborhood that can only be expressed through wry humor of Kenosha workers. The class concept that defined work sphere has vanished over night. The virtual immigrants, skilled and educated that have taken up routine and repetitive jobs have yet to face the overwhelming challenges of their job structure. It is in fact a new form of mechanization that is taking its toll. The call center industry has perhaps the highest rate of employee turn over. Suicides among these workers are frequent.

The workers in neo-liberal phase of capitalism are torn between a unique ambivalence resulting from uprooted loyalties. The tensions created by global capitalism between national interest and market interest, and between community stability and individual freedom can best be resolved only in the psychological shelters of religious icon. They could also fight out their ennui and alienation through philanthropy, flexible citizenship or any other means that strengthens their self worth.

Conclusion: Capitalism has since beginning depended for its existence on labor. Migrants and slaves came in large number to work in plantations. The process has continued since then. Functionalists celebrated the rise of blue collar workers in 1950s but the process was mediated by joblessness, cultural loss and uprootment. With changes in society and newer forms of technology the structure of work has changed but the capitalist paradigm based on neo-liberal approaches to society and economy remains rooted in profit ideology enabled by a global apparatus and refined modes of production. Transnational trade and capital regime has led to transnational workers, virtual workers and workers with flexible citizenship even as the relations of production has brought about greater disparity, and greater alienation  without the class consciousness.

James Baldwin’s novel Sonny’s Blues illustrates the life of the narrator and the relationship he has with his drug addict brother.  The juxtaposition of these two characters is an interesting debate on life and being black.  The following paper will illustrate these two characters and the life situations they have to cope with growing up and living.

The story is told by the narrator who has a fascination with his heroin-addicted brother and his ability to play jazz on the piano.  The narrator takes the reader through his working day as a teacher in an inner city.  The narrator eventually comes into contact with his brother through a third party, his brother’s friend.  It is at this point in the story that the narrator reads a letter written to him by his brother while he was in prison.  The distance at this point in the novel that exists between the two lives of these brothers is what Baldwin wished to illustrate (Tackach 2007).  One brother is locked up in prison while the other one is a teacher.  This moment will play an important role when the narrator sees his brother play the piano later in the story, and how living isn’t necessary a life found on the straight edge of being a teacher, but rather is found with finding one’s passion; or rather, for ‘Sonny’ in playing jazz.

The motif of music has an important role in the novel.  The music in the story, the jazz is a transforming element that allows the narrator’s brother Sonny to become a king, to become a part of something majestically that he loves so much he owns it and by all rights is a king.  This role as king also has an important juxtaposition in the novel as the narrator takes the reader back to growing up together as children in Harlem with their mother (Shannon 1998).

It is at this point in the novel that Baldwin allows a sense of race to play a part in the novel; The narrator tells, through the story of the mother, how the father’s brother was run over by whites with their car and killed.  Here the readers gain a sense of the race issues which abound in all of Baldwin’s works.

The checkered past of Sonny becomes quickly apparent to the reader as is seen through the narrator’s eyes.  Sonny skips school to play jazz and eventually that becomes his calling card; being a piano player at local clubs. Sonny confesses to his brother that his heroin addiction is directly related to his jazz playing.  Sonny admits that in this outside world, the world where there is no jazz, where his uncle was run over by a car filled with white men, that there was too much rage, too much ‘coldness’ for him to do anything about it except to take heroin,

It’s terrible sometimes, inside . . . that’s what’s the trouble. Youwalk these streets, black and funky and cold, and there’s really not a living ass to talk to, and there’s nothing shaking, and there’s no way of getting it out — that storm inside. You can’t talk it and you can’t make love with it, and when you finally try to get with it and play it, you realize nobody’s listening. So you’ve got to listen. You got to find a way to listen. . . . Sometimes you’ll do anything to play, even cut your mother’s throat.

The main difference between the two brothers is seen in this naked emotion and how the narrator cannot begin to fathom its complexities or all of its sources or even how to deal with, so he just blocks it out.  In blocking it out however he cannot enter into the frenzy of the jazz world, and by extension he cannot truly cope with how his uncle was killed because jazz is about expressing violence and thereby jazz becomes a type of cure for the world around the two brothers.

Baldwin’s story is a tale of race issues and involved in that theme Baldwin’s story becomes an issue of how jazz is a healing element.  In the outside world, that is, the world outside of jazz, Sonny is nothing more than a jailbird and heroin addict, but inside the club, playing the piano, he is a king, and he has everyone’s attention in a positive way.  For the narrator however, he doesn’t exist in the club as anything else except Sonny’s brother, while outside the kingdom he is a teacher, even that doesn’t come with much attention.  Either brother is drastically different and its jazz and its acceptance that separates them.

Works Cited

Baldwin, James.  Sonny’s Blues.  Online.  18 February 2008.

http://www.wright.edu/~alex.macleod/winter06/blues.pdf.

Tackach, James.  The Biblical Foundation of Baldwin’s ‘Sonny’s

Blues’”.  Renascence: Essays on Values in Literature, Vol.   59, 2007.

Shannon, Janet Harrison.  Family and Community Secrets: Secrecy

In the Works of James Baldwin.  The Western Journal of  Black Studies, Vol. 22, 1998.

Zora Neale Hurston

“Theirs Eyes Were Watching God” by Zora Neale Hurston is a classic novel which was originally published in 1937, during the time of depression in America. This book is the best known work by the author, which is placed in Southern Florida in 20th century. It is one of the most controversial novels of the time. It has left its mark on the African-American literature as well as women’s literature. The references made to the African -American culture which is intertwined with deep inner search for horizon by young girl Janie Mae Crawford, “blossoming under the pear tree” in West Florida, is spectacular. This journey is the essence of the novel, in which cultural factors are beautifully integrated with conservative Christian faith, folk tradition and feminism. The dream and the romanticism of the young girl is captured with sensitivity and challenge. The title itself is on the surface very spiritual in expression, with insight and depth. Here the eyes are the true reflection of the soul, and the search for God is the search for the true self, in which the human spirit is merged. Janie, is young but has higher aspiration for finding true love, which she does find with God’s grace. She struggles for it , suffers for it and survives through the turmoil in her life before she truly finds and holds on to it. This is true love story which has drama, poetry and music all encompassed in her blissful experience under the “blossoming pear tree” where she finds her moment of inspiration.

Janie is born in a time when black women did not enjoy great privileges. This is a love story of a girl which is deeply rooted in the traditions which are followed by the folk culture in African-American society. The reality of the women’s life in black society was steeped in mythological traditions and observances. Janie, being raised by her grandmother was subjected to compromises regarding her life in the name of tradition; still she nurtures her dreams and finds an opportunity for escape from social prison -marriage to which she was subjected. She manages to get her voice heard after long struggle. And finally through her narration of her life’s story to Pheoby, her best friend she is wisely making her courageous journey for horizon known to the people of Eatonville, which she truly considers her home.

Janie’s quest for identity is the central theme of the novel in which her struggle with the society, dominant male position and inner search for deepest desires and feelings of sexuality is very well woven in the fabric of  20th century America. The division between the blacks and the whites still was very predominant on the social and political scene. The character of Janie Crawford has evolved through three marriages and finally she has settled on her own terms after the role of companionship has been dissolved in her solitary search of selfhood. Her journey for self is slow and gradual, moving towards her horizon of love and inner peace. She has the courage to strive for it, fight for it and struggle to get it. She identifies the true love of her soul and takes on the journey looking into the eyes for God. Her quest for identity leads her on the path which is a journey in which she finds real love, experiences genuine joys and sorrows, participates fully in them and finally comes home to herself in peace.

Her association with nature is her initial harmony with the reality in its pristine form. And, nothing less than real fulfils her quest. Her first mentor is nature, through which she learns her first lessons of sexuality observing the ‘bee on the blossom”, and hence she begins her journey. But before she could reach her horizon several relationships and social pressures overcast her life with compromise and commitment. She has to struggle through social relationships to embrace her real self. She does it beautifully with conviction and determination.

Her two marriages open the door to her greatest education on life. In her first marriage with Killicks she is used as an object of production almost diminished to the status of the mule-hard work and lack of love makes her question her identity and existence strongly. She knows in her heart she cannot live like this, she needs freedom and love to nurture her soul. She gathers courage to run away. This was her first step towards freedom and identity. Her marriage with Joe Starks lasted long for twenty years on mere physical and material needs. She is still not satisfied and never stops to dream and hope for something more which her heart searches around. After Joe’s death “her real journey begins, in search of partner of her choice with qualities not wealth, power or fame. Tea Cake is the person who pleases her inner desire for companionship. Tea Cake engages her completely in heart, mind and soul. He is the first man who allows her to be who she is. She blossoms in his company.

Her marriage with Tea Cake is the end journey for her in fulfilling her quest for love which is beautifully captured in these words “[Tea Cake] looked like the love thoughts of women. He could be a bee to a blossom - a pear tree blossom in the spring. He seemed to be crushing scent out of the world with his footsteps. Crushing aromatic herbs with every step he took. Spices hung about him. He was a glance from God.” (Hurston Chapter 11, pg. 101)

Here she experiences sublime love, but she gets this reward of true love with her courage and determination. Tea Cake is younger than her, he holds no position, and her success in love comes from struggle. She strives hard to change her destiny. She identifies in Tea Cake her intimate partner and does not bother to look into any other factors related to his life. She enjoys her extreme moments of joy and sorrow with him. He makes her feel complete and whole and she clings to this feeling which is ephemeral. And the climax is hit when she has to kill the man she loves and is charged with his murder. She faces the jury, in which black men do not support her but white women come forward for her rescue. She wins, she grows and she matures in the process. She looks for trust and faith and she gets that from unexpected sources. This is her moment of peace and final meeting at the horizon. She glows with inner confidence and light in her eyes because she has found her identity and reached her horizon. “Here was peace. She pulled in her horizon like a great fish-net. Pulled it from around the waist of the world and draped it over her shoulder. So much of life in its meshes! She called in her soul to come and see.” (Hurston Chapter 20, pg. 184)

This is powerful and inspiring narrative, which has mesmerizing impact on the minds of the reader. This is the story of fight of solitary woman through social structure, family pressure, male domination, racial discrimination and legal system. It is a tribute to a black woman, who, though constricted by the times, still demanded to be heard. She has a voice, which is timeless and true, she has found her source of blossom.

A Critical Analysis of “A First Amendment Junkie”

Introduction

Susan Jacoby wrote her controversial essay “A First Amendment Junkie” in 1978. Although she was a female journalist with a good reputation, the publication of this essay made her to be better known in women’s society as a “First Amendment junkie” particularly for her candid views relating to the censorship of pornography. In this essay, she held out her firm belief that it was wrong to impose any kind of censorship against pornography as it violated the right to freedom of speech and press guaranteed under the First Amendment. Little wonder that such a radical view ruffled many a feather of feminist activists in particular who found it hard to accept the fact that one of their kind was expressly advocating the right of pornography to exist at all.

In this paper, an attempt has been made to analyze the assertions of the essayist and hold it to scrutiny in light of contrarian views and to present argumentative conclusions on this controversial topic of great concern to society at large.

Summary

Jacoby’s essay unfolds, in her own words, as an “absolute interpretation” (Jacoby) of the First Amendment in relation to the rights concerning a wide range of expression modes in general and pornography in particular. She effectively argues that it is possible on the one hand to frown upon pornography and at the same time to defend the right to freedom of expression that is guaranteed by the First Amendment. She shows how one needs to take a holistic and healthy view of the whole issue without taking rigid stances as either anti- or pro-First Amendment.

This essay presents a bold defense of her unique stance and image as a “First Amendment junkie” and what it means for her in the society of her times.  Her unswerving conviction that the First Amendment must be upheld at all costs without regard to the content of expression found little appeal with the feminist groups. This in effect implied that expression of even prurient and vulgar stuff (read “pornography”) would pass muster even if it might be offensive to certain groups of audience.

It is not surprising to note that Jacoby admitted to having been ostracized and berated by “many women [she] likes and respects” (Jacoby) for her bold views in this controversial essay.    The essayist herself finds pornography offensive, nonetheless she stoutly opposes the averment that it embodies a mode of expression that is particularly vile, dangerous and as such to be forbidden. Jacoby thinks that such an averment is grounded in “the implicit conviction that [pornography] poses a greater threat to women than similarly repulsive exercises of free speech pose to other offended groups.” (Jacoby).

Writing Techniques

Susan Jacoby has a lucid style of putting her bold views across with candor and conviction. She minces no words in castigating the contestants of the First Amendment. She handles a difficult and controversial topic with the ease of a martial art expert, but for the fact that her only weapon is her incisive ideas and her armor unswerving honesty. By the very title– apparently degrading to herself–”A First Amendment Junkie”, Jacoby draws upon the curiosity of the readers and eggs them on to engage in this tricky but substantial social debate on pornography and the freedom of expression.

Critical Analysis

The essay contains her pithy and engaging criticism of the feminists who cried foul of her apparently outrageous defense of the right to expression without excluding pornography per se. It reveals our predilections and prejudices in the matter of interpreting legislation insofar as it pertains to the touchy topic of pornography. Jacoby argues how subjective value propositions and personal preferences lie at the root of an antagonistic approach to categorizing what needs safeguarding or otherwise in the matter of free expression. It sets a precedent to draw the lines between what a group of people in society like or dislike. This in turn leads to a flawed framework of judgmental appreciation to determine what is permissible or otherwise, purely depending upon its finding favor with the biased group. Such a process, Jacoby argues, detracts from what in truth art or creativity stand for, and even creates barriers to their own existence or continuity.

I tend to agree with Jacoby’s observation that the right to free speech and expression must not be fettered on the plea that certain forms of expression such as in pornography appear to be vulgar or offensive to certain groups of people. The essayist thinks that opposition to the First Amendment takes its sustenance from the subscribers’ failure or incompetence to handle hard issues with courage and maturity. She does have a strong argument for keeping moral policing at bay. Perhaps the solution to preventing the pernicious effects of disseminating such offensive materials to impressionable minds lies elsewhere, and not in the quick-fix remedy of proscribing.

Conclusion

Susan Jacoby does not condone or deny that pornography per se can be vulgar, insulting and offensive. At the same time she cannot subscribe to the view that certain forms of free expression such as pornography can be more pernicious or oppressive than others–racial, ethnic, or anti-Semitic writings or expressions, for instance. Although her averments appear to be anti-society at first sight, a deeper reading of her essay will show that if the right to free expression of pornography is shackled under the law, then the American society must be prepared to shut out many other such ideas and their expression as well. Susan rightly concluded that when we are faced with a hard situation in the context of the First Amendment, the temptation to “censor” is quite irresistible, but a better course lies in putting our “faith in the possibilities of democratic persuasion.” (Jacoby, 2005). The bottom-line of her argument is that the fundamental structure and intent of the First Amendment must not get diluted simply by virtue of the objections or personal preferences of some sections of society. This is not to preclude the possibility of eliminating lacunas that may exist in the legislation itself.

Works Cited

Jacoby, Susan. “First Amendment Junkie.” Critical Thinking. Barnet, Sylvan and Hugo Bedaw.             Boston: Bedford St. Martin, 2005. 41-43.

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On Racist Speech: A Critical Analysis

Introduction

Charles R. Lawrence III, a professor of law at Stanford University, wrote the article “On Racist Speech” against the growing incidence of racial violence, especially in University campuses in the U.S. A college campus has the status of a “home” for the students residing therein, and as such any racist aggression or violence in general and racist speech in particular have the potential to disturb the law, order, and harmony in the social environment, apart from causing injury to the victims of such racial behavior. This paper attempts to analyze the reasons and arguments mooted by Lawrence to demand that racist speech must be regulated, more so in a college campus environment. It also examines how such regulation will impinge upon, or impact, the rights assured under the First Amendment.

Summary

Lawrence begins his article with a focus on the unmistakable message that racial speech “sends a destructive message to minorities that they are inferior and are in turn second class citizens.” (Lawrence). He further feels that the problem of racist speech “has been framed as one in which the liberty of free speech is in conflict with the elimination of racism.” He continues:  “I believe this has placed the bigot on the moral high ground and fanned the rising flames of racism. Above all, I am troubled that we have not listened to the real victims, that we have shown so little understanding of their injury, and that we have abandoned those whose race, gender, or sexual preference continues to make them second-class citizens.” (Lawrence).

The essayist laments that libertarians in civil society who stoutly oppose the plea for clamping down on racist speech have turned away their ears from the cries of the real victims as they do not really understand or appreciate the nature and extent of harm suffered by the victims. Exposing the reality of how championing the cause of free speech for its own sake comes in conflict with efforts to eradicate racism, Lawrence makes an impassioned case for eliciting support from the powers-that-be. A major support that the essayist relies on to drive home his point is the now famously known Brown v. Board of Education case that finally drew curtains on the segregation of students in schools on racial lines. He held this up to show that the government took its awareness of the problem of racism to its next logical step of legal intervention with a view to getting rid of “the system of signs and symbols that signal the inferiority of blacks.” (Lawrence).

Later in his essay, Lawrence takes a strident view that the goal of ending racial oppression and racist speech would remain an empty dream unless and until the regulation of free speech becomes a reality. He argues that under the cover of free speech, racist elements tend to take a moral high ground and go on to add fuel to the fire of this burning issue, thus fanning the “rising flames of racism.” (Lawrence). He thus feels that those who blindly oppose the plea for bridling of free speech in order to halt racial oppression only help in rendering racial animosities grow stronger by the day.

Writing Techniques

Charles Lawrence has a gifted style of narration that is lucid and flowing. He writes cogently with compelling logic and felicity in expression of his ideal. He is at times hard-hitting and honest in his exposition of the realities of life as he sees it, and makes forceful pleas to eradicate the evil of racist speech.

Critical Analysis

The strong plea for regulation of free speech made by Lawrence aims at eliminating racist oppression and racist speech even at the cost of legal restrictions to the rights endowed under the First Amendment. The writer thinks that if society has not been successful in this direction for so long, then it would be futile to imagine that free speech should continue even as the fight against racism goes on. He does not buy the argument that free speech empowers all people, including the victims of racism, to express their views and problems freely. To support his view, he cites the Supreme Court, which ruled that the First Amendment could not be construed as protecting words, which “by their very utterance inflict injury or tend to incite an immediate breach of the peace.” (Lawrence). I am inclined to agree with the views of the author inasmuch as unbridled freedom of speech might rather help in entrenching racist attitudes deeper than in eradicating the evil.

Conclusion

In the final analysis, Lawrence roundly castigated those that opposed regulation of free speech on the facile plea that the good of the society demanded it even if it did cause injury or damage to the victims. He showed how it was inhuman to allow such racist victim groups to continue to “live and work in an environment where at any moment they may be subjected to denigrating verbal harassment and assault.” (Lawrence). He boldly solicited support for the suffering groups of students who had their voices “chilled in a climate of racial harassment.” (Lawrence). Among the many approaches to solving the problem that Lawrence suggested are the need for regulation of free speech especially in college campuses, creating better awareness among those in authority, and empowering the victims of racist speech or aggression.

Works Cited

Lawrence, Charles, R. “The Debates Over Placing Limits on Racist Speech Must Not Ignore the           Damage It Does to Its Victims”. The Chronicle of Higher Education, 1989. 1-4.

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House of Spirits

The movie “The House of Spirits” was directed by the Danish Film maker Bille August, based on the novel of Isabel Allende. The movie features Jeremy Irons as Etebian, Teri Polo as Rosa Del Valle, Meryl Streep as Clara, Rosa’s sister, Winona Rider as Estebian’s daughter, Antonio Banderas as Estebian’s son-in-law and a hotheaded revolutionary, Joaquin Martinez as Estebian’s illegitimate son who comes back for revenge and Glenn Crose as Ferula, Estebian’s sister.

A brief summary:

The story of the movie is essentially a melodrama that encompasses three generations and contains the elements of revenge, violence, love and telekinesis. The Movie’s plot is set up at Chile and begins in the year 1926. A young man called Estebian falls in love with the daughter of bourgeoisie parents, Rosa De Valle. Being poor himself her parents tell him to become rich before marrying their daughter. Estebian’s hard efforts in the gold mines of Argentina gave him the opportunity to fulfill their demand. However Rosa is killed via poison, as predicted by her sister Clara who has some telekinesis power of the occult. Estebian then moves to Trés Marias and spends around 20 years of his life in transforming the house into a flourishing mansion by exploiting the poor laborers. When he returns to city he meets Clara, who, despite taking a vow of silence speaks for the first time telling Estebian “You have come to propose marriage to me”. They came back to Trés Marias and bore a daughter Blanca who married a short-tempered revolutionary, Pedro. Meanwhile Estebian banishes his sister from the house, beats up his wife and rapes a peasant woman while Argentina is on the verge of revolution. The product of this rape was an angry young man who initially convinces his father to send him to a military school and hence returns with a mind full of hatred and revenge to the Trés Marias. (”House of Spirits”, 1994)

Different dimensions

People with an appetite for such an eventful family saga, would definitely find the movie worth watching twice. The novel too is great to read through. The characters did not have any outstanding role to play but the combined effect did have the potential to move the audience. (”Isabel Allende”, 2008) While Antonio Banderas, as the jeune premier had a trivial role that gave him enough scope of proving himself intense. But nothing influential or attention seeking was traced in any of the roles except that of Estebian and Clara. The roles of the two Hispanics - Miss Alonso and Mr. Martinez were rather entertaining although their roles were undemanding. Despite giving a restrained performance, Meryl Streep’s dialogues and presence held some remote appeal. Glenn Close was dressed up quite boldly compared to her role and gave a shine of unconventional background. Clara’s presentations have rightly suited to bear the power of telekinesis. The movie, though was stretched out did have a substantial story line to hold back the audience. If one considers the Danish film maker’s previous pieces of marvels like Pelle the Conqueror and the appreciated The Best Intentions, from a script by Ingmar Bergman, then “House of Spirits” is a show that holds some difference and would lay large impact on the emotional and temperamental mindset as well as provide much to the calculating mind. Some critics also think that a Dane has no business making a movie about South America, but I personally feel it reflects the versatility and impartiality of a filmmaker.

Aside from these, the rape scene that exposed nudity drew criticisms from the worried parents as this famly oriented movie could not be watched comfortably with a family including children. It also revealed some violence that a young mind would not be able to take. Hence the target audience or rather the viable audience of the movie would be limited. Despite all, the set of audience would defnitely cherish watching the film that would offer a splendid dish for the human soul. Some psychological food of solace might be imparted to the audience as the illegitimate son of Estebian, who has raped his mother, comes back for vengeance after being trained in a distant military school by his father at his request. Inspite of his evilry some justification can still be found in his actions.

The exteriors, which were shot in Portugal might not have looked like Chile, but were certainly gorgeous, being photographed by Jorgen Persson, the Swedish cinematographer. Anna Asp, Bergman’s former production designer along with the photographer has made the settings a spectacular thing to watch. Thus apart from the star cast and direction, the setting and photography is also noteworthy.

Conclusion

Jeremy Irons truly brings out the facets of the character of Estebian via his passionate performance adjusting himself completely and suitably to the changing demands of the role throughout the movie. Clara is gifted with telekinetic ability and she reflects her dedication to the power though does not use it too often. The vow of silence taken by her for a long term may somewhat give muteness of the female character a lot of focus not just because of the oddness of the role but also the deeper expressions revealed from beneath that mask of silence. The overall impact of the movie would be long lasting and moving to the human mind and has a large variety to offer on a single plate.

References

1. “House of Spirits”, August, Bille, Maria Conchita Alonso, Antonio Banderas, Sarita Choudhury, Glenn Close, Miriam Colon, 1994, retrieved on February 19 2008 from:  http://www.youtube.com/watch?v=sqlNuX0FVRo
2. “Isabel Allende”, Mostly Fiction, 2008, retrieved on February 19 2008 from: http://www.mostlyfiction.com/latin/allende.htm

A business startup requires a lot of thoughts and strategies. Whether it is in the manufacturing industry or the service industry, every minute detail of the business prospect in terms of its profitability to its competitors must be studied and evaluated to understand the gravity of the venture and the risks involved. Thus, a proper business plan has to be developed and tested against the current market to understand its viability.

A business plan will only help to develop and improve the proposed business. It helps the proposed to understand the business, define what they want from the business, understand customer needs, and how to optimize the proposed business.

The first stage of the business plan is to focus on the basic parameters of the proposed business, like constructing the mission statement, identifying the keys to success, undertake market analysis, and create a break-even analysis to give the proposed a critical head start toward understanding the business.

However, startups are not as simple as it seems, for in the manufacturing industry, one needs to address product development, packaging, retail fittings and signage, office equipment, website development and maintenance, and the initial capital to run the show before actual returns are generated. Unless one has the wherewithal to support these expenses on their own, they will then have to look to banks to avail loans. In the service industry, the level of investment is comparatively lesser, and therefore not much thought needs to go into the financial aspect of the startup capital.

An ideal platform for a startup business would be to develop the plan in stages to meet the proposed business goal. Adding a basic sales and expense forecast will help understand profit and loss, so vital in business (Berry, 2008).

There has been a drastic change in the way logistics operate today. Today, logistics is about economics of scope than economics of scale. What this means is that more and more companies are now concerned about the scope for development rather than volume. Quality is what is foremost on the agenda of logistic operators.

Business is characterized as evolving away from the earlier objective of single exchange transactions towards a long-term buyer-seller relationship of mutual benefit. These strategic relationships generate managed supply chains.

Today, logistics involves the cooperation through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. That’s right! Logistics is about total solution under one roof. This way, companies manage their business with lesser paperwork, less tracking and negotiations, and shared responsibilities. What brought about this transformation? Consumers; that’s right! Consumers today seek greater product variety at high quality level and obviously, reliability. Product availability is mandatory. Thus, the huge containers that used to carry high volumes of consignments have now been cut to size to accommodate quicker and easier handling, thereby accommodating faster and efficient services, plus continuity. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

Globalization and outsourcing has opened new vistas for logistic operators in relatively all areas of operations, be it shipping lines, forwarders, terminal operators, road haulers, or rail operators. The integration of these services under a single umbrella is what corporate managers seek today. Together, this integration provides new value-added services as an integrated package.

Executive Summary

The strategy process is quite intriguing, yet exhilarating. Every company has its share of researchers who respond to the strategy process challenge by identifying certain traits that can either bring moments of exhilaration or disillusion. Disillusion comes from the often grotesque outcome of their effort leading to an outcome that is far from impressive. A lot of empirical research goes into the strategy process; large, often heroic and distinctive, collection of data is required to explore the possibility of linking strategy process and decision-makings, and finally to performance. The potentially revealing and insightful information comes at a cost, a cost that can nip the career perspective of the researcher, if it crashes. However, the outcome, though comprehensive, can be complex, messy, and notoriously fragile.

Nonetheless, a significant part of the research is characterized by controversial normative orientation; strategic change or protecting and extending existing strategies, as Chakravarthy (2003) said. Such outcomes remain highly influential (if successful) until they are outdated, out fashioned, or shown to be hazardous.

In short, a prescription that would guarantee supra-normal profits consistently would de-facto become the strategic management field’s own version of the proverbial money machine (Szulanski et.al, 2006).

1.1       Objective

This paper proposes to illustrate the advantage that introduction of information technology has in leveraging the competitive advantage in the courier industry. The business is set to operate from Minneapolis, and with so many courier companies operating around the city, it becomes imperative for the startup courier business to introduce MIS to enhance and beat competition. Minneapolis-Saint Paul area has many courier companies of repute. Names of OnTrac Courier Services, LLC, General Delivery Service Incorporated, Blazing Saddles INC, Edina Couriers LLC, DHL Express, Dash Delivery Service, On Time Delivery Service, and Quicksilver Express Courier to name a few, are well established names in the courier business, and any startup courier business will have to either match them in service or beat them with technology to make any mark here. It is with this objective in mind that the startup courier company that is proposed will incorporate the best of technology to leverage competition (Citysearch, 2008).

1.2       Mission

The courier industry is highly competitive, and consumers have become far more knowledgeable, and this makes the industry far more complex to run. Unless customer service is enhanced, there is every chance of the business losing important clientele and depleted database. To enhance service and keep abreast competition, the new Courier business will introduce the best of technology to enhance performance through tracking and execution. Since a lot of important documents and consignments are routed to destinations to save time, courier companies need to offer fast, reliable and foolproof service to them. This is what the introduction of new technology will offer, and sought for the new startup company

1.3       Keys to Success

As a startup, the first priority would be to vision the future to create a successful business strategy. The vision is something that is proposed of an industry that it must create, shape and transform over time. For this, the business leaders need to seek input from the enterprise, customers, employees and business partners. Earlier, many business houses defined their products and strategies to attract customers, but this has now changed. Today, concentration is on what values they have created for customers. Therefore business must address customer needs and demands rather than using their product or service and enforcing it on the customer. Greater competition, globalization and faster imitation have caused many products or services to become commoditized. Customers are far more knowledgeable and demanding than earlier days. They have access to more information through new channels such as the Internet. They are more knowledgeable and discerning than ever before and demand exceptional value. Customer relationships have come to the fore.

Peter Drucker (2001) once wrote that there was only one valid definition of a business purpose, and that was to create a customer. What the business thinks it produces is not of importance, it is what the customer thinks he is buying, what he considers as value, that determines the present and future of the business[1].

Similarly, Adrian Slywotzky (1996) in Value Migration[2] said that a business strategy in never complete without addressing its customers, define and differentiate its services, define the tasks it will perform, configure its resources, and creates utility for the customers.

IT related programs to improve and increase customer services are mandatory as well.

2.0       Company Summary

As a startup courier company in the Minneapolis area, the company has great business potential, as the twin cities of Minneapolis-Saint Paul metropolitan area is home to many industries and business. The new company will incorporate some of the latest IT solutions to beat competition. It will put in place a strong supply chain management that will provide real-time visibility and control over changes occurring in the supply chain industry. The technological development is such that, the supply chain industry today has the availability of solutions for Supply Chain Planning (SCP), Supplier Relationship Management (SRM), Enterprise Resource Planning (ERP), and Business Intelligence (BI). This is what will help the new startup company develop its business and beat competition (Oracle Corporation, 2005).

3.0       Product Description

Logistics refers to the systematic management of various activities required to move a product or from the production/manufacture plant to the customer. It encompasses more than just movement of goods; it involves timing, cost, location, availability, and support systems. With globalization, competition at regional and international level has become even more intense, and cost and availability are prime concern for the end-user. Most companies therefore are forced to rethink their logistic operations to maintain stability on all fronts.

While we saw that in the 1980s and 1990s companies tried to out beat competition through improved production and reduced costs (cheap labor being one), technological advancement negated this advantage and forced companies to look for alternatives. Time is a constraint in today’s business world. Time spent on execution of orders has led to legal entanglement and business loss. This is the biggest worry in the world of supply-chain management. There is a growing demand for time-based logistics management, where customers are increasingly sophisticated and value time as money. To ensure quick and efficient streamlined flow of goods from the producer/supplier to the customer, companies now track factors that cause delay and try to eliminate them (Kent N. Gourdin, p.9, 2001).

Efficiency and durability are trade mark of a successful logistic operation. Using state-of-the-art network modeling tools to determine how well the distribution network serves the customers, logistics should include, inbound to outbound facilities, inventory, and service, employing all modes of transport (air, sea, rail, and road). Another important aspect of logistics is to analyze variables, such as inventory cost, time-in-transit, and service by product, industry, and location (Dynamic Logistics, 2007).[3]

The Internet, e-tailing and electronic commerce play an important role in logistics and their importance can be traced to dramatic changes in the corporate world of supply chain management. Together, they have gained importance in bringing gains and sustaining competitive advantage. Of the technology options, Logistics Execution Systems (LES) plays a vital role in the order fulfillment and product delivery.

Companies need to meet challenges, and to do this successfully, they spend time and money developing solutions in-house that will enable them to accurately identify, track, manage and report on material flow as well as efficiently allocate resources to related tasks throughout the pipeline. In order to achieve this, companies need to focus on:

Centralized distribution centers

Channel-specific distribution center design

Repackaging, labeling and pricing at the distribution point

A move to more conventional or hybrid warehousing with on-line, real-time computer-based warehouse management systems

Compliance as well as supplier labeling and price marking

Increased use of standard bar code for product, packaging and ship container identification to facilitate warehouse management, shipment tracking and POS transaction monitoring

Supplier’s retail store level inventory (VMI).

Trading partner communication

Growing use of decision support, modeling and simulation tools

Employee empowerment through tools to increase operational efficiency and productivity

In warehousing operations, an increasing number of companies have grown cautious about investments in large scale, opting instead for more flexible, fully conventional approaches or hybrids that combine mechanized and conventional alternatives (Hill, p.2-3, 2003).

Initially, LES were introduced to permit real-time material tracking and resource management in conventional warehouses, using bar codes for material tracking, a broader array of radio data terminals for industrial applications, and a dramatically improved computer performance at lower cost and a variety of software tools to relational data base management.

Warehouse Management Systems had clearly come of age. Industry leaders began to see results as revenue grew at better than 20% annually and initiated programs to add functionality in the areas of labor (LMS) and transportation (TMS) management. LES (logistics execution systems) emerged as the new acronym for systems that managed material and data flow in the supply chain (Hill, p.4, 2003).

There are three basic forms of outsourcing with regard to supply chain management. These are other methods used to improve production, quality and inventory. They are:

1          The outsourcing of the production of components. Global Corporate develop long-term relationships with a number of suppliers on the basis of mutual trust.

2.         Value-Added Logistics (VAL). VAL implies that production and distribution of a supply chain integrates into one.

3.         The outsourcing of transportation, warehousing and distribution. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses.

Though the above methods have been successfully used and managed by a few corporate, outsourcing of transport, warehouse and distribution should be the ideal situation to minimize capital investment and ensure more professionalism.

4.0       Market Segmentation

A supply chain involves the movement of raw materials from a supplier to the production house, which is then processed to form the final product, before being sent to the customer (who placed the order) through a distribution system. As mentioned earlier, with the advent of computers and software to run them, it has become easy to track the movement of shipments from the origin to their final destination. Any organization that is in the service, maintenance and production sector rely on quick supply and replacement of spares and parts for their business success. Though the functions are more or less the same, supply chains vary depending on the size of the organization and the type of business they are in. Customer satisfaction is paramount. In a highly competitive world of computer hardware manufacture, satisfying a customer is utmost paramount for success. Scheduled deliveries, dispatch of spares and add-ons on time are paramount to the success of that business. Should a customer find his/her business affected due to non-availability of spares, or delayed replacement of machinery parts in their workshop, they will not only cancel their order, but would in all likelihood change the supplier for delayed shipment.

Almost all industries use couriers these days to stay competitive and because of this, all courier companies, must be able to provide foolproof and reliable service to stay in front. Be it the computer manufacturers or their suppliers, heavy or light machinery manufactures or suppliers, office equipment manufacturers and suppliers, service units and so on, they depend on time-bound services to beat competition.

5.    Competitive Edge

Transportation eats into profits considerably. As in the case of location, transportation costs can be minimized by having the distribution centers close to customer’s access. The same can be said in terms of production and spares as well. Air transport is quick, but at the same time expensive, in comparison to shipping by boat or rail. Yet using sea or rail often means maintaining higher levels of inventory in-house to meet quick demands by the customer (Rockford Consulting, 1999).

Some 30% of the cost of a product is encompassed by transportation; therefore it is imperative to use the correct transport mode.

There has been a drastic change in the way seaports operate today. The era gone by Fordism ‘Economies of scale’ has been replaced by ‘Economies of scope’. This post-Fordism change has seen a revolution in logistic movement. Subsequently, the port authorities who were hitherto the ‘bosses’, found themselves at the receiving end. Today, logistics talks of organizations cooperating through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. Consumers today seek greater product variety at high quality and reliability. Availability is mandatory. Thus, huge containers are now cut to size to accommodate faster and efficient services. In order to attain such professionalism, global corporate houses have become centers of corporate structures, centered on the principles of co-operation and partnership; outsourcing of logistics functions.

The outsourcing of transportation, warehousing and distribution is an appropriate way to cut transportation costs. Third-party Transportation, warehousing and distribution activities are fast growing outsourcing businesses. Globalization and outsourcing has opened new vistas for shipping lines, forwarders, terminal operators, road haulers, rail operators and barge operators. Together they provide new value-added services as an integrated package. Improvements in terminal and landside operations are required to lower the cost on door-to-door servicing and savings at sea, one reason why shipping companies are expanding their scope to include terminal operations and hinterland transportation. Customer service is most important for any business. In order to achieve this, easy product reach is necessary. This can be provided using multi-level mode of transport to reach the customer’s destination (Christopher M, 1992).

Strategy process can be defined as the identification or uncovering of connections between the social, cognitive and political processes by which strategies can be formulated to make firms perform (Szulanski et.al, 2006).

Wireless technology, such as @Par combines with ERP and WMS systems. This technology enables clients for pick-up, put away, receive, deliver, dispatch, cycle count, and cart management functions, the lifeline of the supply chain business. It is built on a robust platform that integrates through XML. It has advanced features like instant messaging, speech recognition; RFID tags, and uses a wireless LAN to transmit data in real time.

IristaWare system prioritizes, directs and confirms activities based upon the real-time conditions and constraints of space, equipment, and inventory. This software enables companies to automate their inbound order processes, inventory control, and outbound distribution activities using RF, barcode, and auto-ID technology. From advanced ship notice (ASN) processing to lot and serial number maintenance, iristaWarehouse tracks and controls the movement of both raw materials and finished goods through the distribution network. Advanced functionality including yard and dock management, value added processing, cross-dock fulfillment, and wave planning provide the tools to increase throughput while reducing operating costs (irista.com).

Monitoring and analyzing daily demand signals creates an accurate forecast in inventory and transportation. Real-Time Forecasting (RTF) helps reduce forecast errors substantially leading to reduced and expedited shipments and transportation costs.

In can also be noted that how today’s standards-based modeling, monitoring, connectivity, and process integration tools that comprise IBM’s Process Integration suite are allowing companies to implement process automation components with greater speed and agility than ever before.(Noel, Supply Chain Management).

Decisions pertaining to supply chain management cover long-term and short-term goals. Strategic decisions come under the jurisdiction of corporate policies, while operational decisions deal with day-to-day activities and problems within the organization. Therefore, an organization normally structures their supply chain on a long-term basis, while at the same time, focus on the day-to-day activities. In order to succeed, corporate heads need to assess the market demands, customer service, transport considerations, and pricing constraints to structure the supply chain effectively. These factors are inconsistent, and thus have to be monitored regularly to avoid harm.

Structuring a supply chain also requires an understanding of the demand patterns, service level requirements, distance considerations, and cost estimation, among others. These factors too are highly volatile, and can affect deliveries and supplies. Thus, this is an additional parameter that needs constant monitoring.

6.      Sales Strategy

Innovation is the secret behind success and failure. By treading known strategies or ideas, one can never achieve the kind of success envisaged by them. It takes more than just hard work to beat competition. Innovation makes all the difference. Considering the various technological advantages available today to offer efficient, safer and fast services, the new startup courier company can with limited resources be able to outsource a major part of its services and still end up with a sizable business volume that hurts competition.

Transportation eats up a major chunk of a producer’s profit, and if a solution is provided to ease the tension and at the same time, reduce their overheads, it will become an instant success. This is what is required by the startup courier company to concentrate on.

7.0       Management Summary

With the introduction of new technology to support operations, tracking and routing of consignments will be easy and clients will be able to get prompt delivery schedules and confirmations, enabling them to plan their strategies to minimize costs. In today’s world of globalization, the movement of spares and important machines are routed through couriers because of their worth. Couriers engage in land, air and sea transport to complete of shipments based on their value and size. By tie-ups, the company will be able to minimize their operational costs, but enjoy handsome returns from their association with partners. This will enhance profits and help the startup courier company to beat competition. The new technology will decrease manpower and operational overheads, while at the same time, streamlining deliveries.

8.0       Financial Plan

The Financial plan must draw on the following to derive the profit and loss statement and the revenue generated by the courier business for the first year of operations.

Company Name:

Income Statement for the year ending _____________ [Month]

Revenue:

Revenue: Services
Total Revenue Generated: Services

Revenue: Miscellaneous
Bank Interest
Total Revenue: Miscellaneous

Revenue: Expenses

Direct Costs:
Materials
Equipment Rentals
Salary (Owner)
Wages
Maintenance
Miscellaneous
Total Direct Costs

General And Administration
Accounting and Legal Fees
Advertising and Promotion
Bad Debts
Bank Charges
Depreciation and Amortization
Insurance
Interest
Office Rent
Telephone
Utilities
Credit Card Commissions
Credit Card Charges
Total General And Administration

Total Expenses

Net Income before Income Taxes

Income Taxes

Net Income

CASH FLOW PROJECTIONS

(Add a row of monthly headings to cover one year period)

Cash Revenues
Revenue from Service Charges
Cash Disbursements
Cash Payments to Franchisee Partners
Management Draws
Salaries and Wages
Promotion Expense Paid
Professional Fees Paid
Rent/Mortgage Payments
Insurance Paid
Telecommunications Payments
Utilities Payments
Total Cash Disbursements

Reconciliation of Cash Flow
Opening Cash Balance
Closing Cash Balance:           Total ash Revenues - Total Cash Disbursements
(Susan Ward, About.com).

9.0       Profit and Loss

10.0     Conclusion

While starting a courier company may be simple, there is more to a company that sustains itself in the face of competition and those that fizzle out without a fight. A lot of study and planning is required to undertake a project that has numerous competitors fighting over the spoils. This report just about summarizes the basic needs to understand the market requirement and what are the parameters to be addressed to launch a competitive courier company in Minneapolis area. With a huge industrial and business base, Minneapolis offers good opportunities to well-established and unique service providers. The basic necessity of any service-oriented company is to address the needs of the customer, for, the customer is king.  Innovation and the use of technology such as MIS and RTF (Real-Time Forecasting) and Wireless technology, such as @Par combined with ERP and WMS systems help courier companies to track and record the movement of consignments. With globalization, courier business has gone overboard and more and more practices are being incorporated to beat competition. Logistics is an area of wide acceptance, as machinery and equipment find their way across borders to ease production and quality costs. This has made many courier companies to expand their business into multi-mode logistic operations with partnerships to ease huge capital investments.

The new startup courier company that is sought to be made up looks at including logistics in a big way to beat existing business in the Minneapolis area.

11.0  Bibliography

Berry T, Bplans: A Simpler Plan for Startups, http://articles.bplans.com/index.php/business-articles/writing-a-business-plan/a-simpler-plan-for-start-ups/

Szulanski G, Porac J, and Doz Y, Strategy Process: Introduction to the Volume, The Challenge of Strategy Process Research, 2006, http://www.rotman.utoronto.ca/~baum/v22_intro.pdf

iristaWare, http://www.irista.com

Jasmine Noel, BPM and SOA: Better Together, IBM-sponsored white paper by analyst, a founding member of Ptak, Noel & Associates, http://all-free-info.com/supply-chain-management

Christopher M., 1992, Logistics and supply chain management: Strategies for reducing costs and improving services (London: Pitman Publishing).

Citysearch, 2008,  http://twincities.citysearch.com/yellowpages/directory/Twin_Cities_MN/20/532/page1.html

Rockford Consulting Group Ltd, RCG University, Supply Chain Management, 1999, http://rockfordconsulting.com/scm.htm

Oracle Corporation, Measuring Supply Chain Excellence, March 2005 AMR Research report “How Best to Measure Your Supply Chain Today, http://www.oracle.com/newsletters/updates/2005-10-21/supply-chain-management/measure-supply-chain-effectiveness.html

Kent N. Gourdin, 2001, Global Logistics Management: A Competitive Advantage for the New Millennium, Blackwell Publishing, Google Book Search

John M. Hill, 2003, White Paper, Logistics Execution Systems Perspective, Supply Chain Forum, www.idii.com/wp/ESYNC_LES_Perspective.pdf

Dynamic Logistics, Services, 2000-2010, www.dynamiclogistics.com

Susan Ward, About.com, Small Business: Writing the Business Plan, http://sbinfocanada.about.com/cs/businessplans/a/bizplanfinanc_4.htm

[2] Adrian J. Slywotzky, 1996, Value Migration, Howard Business School Press, Boston, p.4

[3] Dynamic Logistics, Services, www.dynamiclogistics.com

Introduction

In today’s competitive world many businesses have been struggling to stay afloat let alone compete.  One example of which is Motorola Incorporated.  Galvin Manufacturing Corporation, the maiden name of Motorola, began its operation in the late 1920s as a family owned electronics manufacturing business.  Through the years, as Paul Gavin, the founder and owner, experienced success in his business endeavor, he coined the term “Motorola”; thus, changing his company name from Galvin Manufacturing Corporation to Motorola Incorporated.  From then on, Motorola has been a household name when it comes to radio-related products such as the world’s very first walkie-talkie.

Starting with such products, Motorola went to defense electronics, cellular infrastructure and mobile phone manufacturing.  It created products both for private and government consumers such as mobile phones, laptops, computer processors and radio communication devices.  For several decades now, Motorola has been at the top of its game.  Being the main supplier of microprocessors for Commodore Amiga, Apple Macintosh and Power Macintosh personal computers, plus having a wide array of communication products which includes satellite systems, digital cable boxes and modems, business couldn’t get even better.

It seems that good times indeed, never last long.  This paper aims to analyze and identify the flaws and loopholes of the company by understanding its strength and weaknesses based on a comparative study of the market and its competitors.  The question of whether or not should Motorola Incorporated let go of its mobile phone manufacturing department will hopefully be intelligently answered at the end of this paper.

Body

At the dawn of information technology, Motorola manufactured its Motorola RAZR Line, a thin clam shell mobile phone with camera.  This phone has been regarded as a status symbol, as it was an exclusively fashionable phone only the rich can afford.  Over a hundred and ten million units of it sold, Motorola ranked second, next to Nokia, in the 2005 market study.

In man’s pursuit of science, and the stunning success of the mobile phone retail industry, many entrepreneurs joined in the game.  Nokia, Samsung, LG, Sony Ericson and even the Voda phone from Japan is already out in the market.  China has even manufactured its “own version” of these phones.  Apparently, in the early years, Motorola Incorporated didn’t mind the other players, thinking that 1) the market is too big and 2) Motorola was the first in the industry and its RAZR line was a big hit.

In the Chicago Tribune’s February 1, 2008 issue, Motorola was so overwhelmed with the RAZRs hit image that it has forgotten to move on.  It became stuck to just one idea, one design, one purpose.  Instead of introducing a new product that can be a potential hit, it remained to be the same (Benderoff 2008).

Motorola has a lot of strengths that could have easily combated the present competitive market.  First, they possess a strong engineering know-how.  Second, they were the first one’s who truly made a “wave” with its RAZR line and third, they already captured the market having sold more than 110 million of this RAZRs.  However, nothing exists without an opposite, so, along with its strengths, the company also has its weaknesses, all of which is just because of their attitude. The company was so relaxed that it failed to notice or even anticipate challenges.  Motorola Incorporated had clung to the olden days which made them lose their focus.

In the May 9, 2007 issue of Business Week, Motorola Incorporated was caught up “in the grip of a major earnings stall” as Samsung dominated the global market with its innovative phone features and amazing designs (Ihlwan 2007).  Now this spells trouble for Motorola as all its units are in the market, there is no certainty that its manufacturing costs and other operating expenses will be met.  Not even a break-even figure was foreseen.

It was not only Samsung who took the mobile phone industry by storm, but also Nokia as its sales sky rocketed in the last quarter of 2007 (Ewing 2008).  While Nokia was experiencing an all-time high in revenues, Motorola’s appointed chief executive officer, Dan Brown, was facing the lowest plunge in sales for the fourth quarter, further adding that this will still continue (Crockett 2008).

Motorola Incorporated’s opportunities lies in their technology present technology.  They have been suppliers for many companies in terms of electronic devices which means that they already have a wide channel of markets at their hands.  Apple Macintosh is in itself a very big prospect for Motorola’s mobile phone department.  The company also had the opportunity when the market raved about the RAZR line; but then again, they failed to give importance to what they already have by losing focus.

Motorola Incorporated has indeed been experiencing the most difficult challenge ever as it is bombarded by decrease in revenues, increase in operating costs, plus the fact that a number of competitors have been pulling the company downwards.  Samsung, Nokia, LG, Siemens, Sony Ericson are only a few of the many competitors who are out in the market today.

The market trend of the 21st century is not only focused on people who are earning.  Several studies have shown that consumers can come from different backgrounds having different ages.  This means that consumers’ age range now is wider than before.  The younger, hip crowd are also valuable consumers.  Both Samsung and Nokia appealed to this type of consumer. While Motorola remained to the older age groups, Samsung and Nokia gambled by making something that is new.  Something that is innovative, which means, something unconventional.  Who would have thought to make a pink mobile phone, or an ipod and a phone in one.

Every year, these new players in the market are continually doing market research and studies to always get in tuned with the existing market trend.  They also almost never stop thinking of new designs and features that they could incorporate in the mobile phone as they continually launch new mobile phone models, with a new name, not just sticking to the same “RAZR” for ages.  These companies knew until when they can use a particular phone model name, like the Nokia N70 series for example.

These companies stretched the imagination of the consumers, by introducing new lines of products - models, sizes, features - that are out of the ordinary, they extended the limits of the mobile phone as a mere calling device.  They explored the possibilities with their imagination, which sadly, Motorola Incorporated lacked; or if they didn’t, failed to initialize it at the most crucial time.  Having already lost one hundred and eighty-one million dollars during the first quarter of 2007, Motorola has a long way to go to be able to recover, and this includes selling more of its phones (Ihlwan 2007).  In the last quarter of the same year, Motorola continued to experience problems with its mobile phone division with a downward plunge of 1.2 billion in losses (Bartash 2008).  With such a great figure, it seems that the company has no choice but to close down and let go of its mobile phone manufacturing division.

Although news reports said that there is a long turnaround, what’s important is the chance of getting back.  Another opportunity to engage and win back everything, okay at least half if not everything, of what the company had lost (or will still be losing).  Motorola just needs to understand the value of how customers choose to buy a product.  The reasons can be numerous, from fashion to necessity to status symbol.  Consumers buy these products, like mobile phones not so much of the price but of what they value most.  If they are the type who are always on the go and likes to have access to emails 24 hours, then, the company must also be able to come up with a phone that does such thing.  It is about meeting customers’ needs.  Answering customers demands can mean a fashion trend or statement.  It’s like clothes, after the winter fashion, spring fashion follows. The success and the failure of the company lies on its ability to meet both wants and needs of the customers.  Moreover, it must also be able to provide options, as this is also important.  It gives the messages that you are catering for all, and not only for a few.  Production, manufacturing and shipment costs may also take a toll for every company.  Of course, you will not sacrifice quality for quantity and revenue right?  On this matter, the company may design strategies on how to market a certain model of phone.  For instance, make it a seasonal product launch.  In this way, the company needs not to manufacture a lot.  They can manufacture a limited number and then after it has fully accepted by the market, the company may reintroduce the same model again.  The appeal won’t be lost in this manner, because you create an illusion of “scarcity of the product” which translates to “exclusivity”.

Conclusion

True, their strength lies on the fact that they have already captured the market with the RAZR line of phones, and being the first to have a product with an exclusive fashionable appeal, they could have easily created a “new wave” of phones. Instead of making the mobile phone a necessity, Motorola Incorporated could have easily created a demand on it, making mobile phones a want, rather than a necessity.

It could also seem that with the huge amount of losses the company has incurred over the years, there is no other way to climb back up than to let go of the department.  Although it might be difficult, and it would surely entail more investments, Motorola can still get back on track.  It is not impossible to reclaim the stature one once had.  That is if you just set your mind to it.

My final though on the matter is that, Motorola still has a big fighting chance.  The market already knows the company.  Even if its mobile phones are not the current hit in the market, it has already proven that it can “stir” the market on its direction.  Motorola Incorporated still rings a bell, which means people still knows what it was, is and they are definitely looking forward to what it will become.

Motorola Incorporated only needs a little innovation, a trick of their own, which I believe is not

difficulty to create.  Motorola still has a future.

Bibliography

Benderoff E. (2008). “Motorola’s Wayward Path.  Exploiting the RAZRs appeal instead of

introducing another breakout hit led to a dead end.  Chicago Tribune online. February 1, 2008. February 12, 2008

<http://www.chicagotribune.com/business/chi-fri_motophonefeb01,0,7375890.story>

Wong W. (2008). “Lack of Style Points Behind Motorola’s Fall from Fashion.” Chicago Tribune

online. February 3, 2008. February 12, 2008

<http://www.chicagotribune.com/business/chi-sun_moto_0203feb03,0,3171039.story>

Ihlwan M. (2007). “Samsung Set to Pounce on Stalled Rival.” Business Week Corporate

Strategy. May 9, 2007. February 12, 2008

<http://www.businessweek.com/print/globalbiz/content/may2007/gb20070509_368061.htm>

Ewing J. (2008). “Nokia Rockets Past Rivals.” Business Week Europe. January 24, 2008.

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Bartash J. (2008). “Motorola Profit Sinks on Mobile Woes Shares Plunge to Five-year Low;

CEO Sees Long Turnaround.” Market Watch online. January 23, 2008. February 12, 2008. < http://www.marketwatch.com/news/story/motorolas-quarterly-profit-declines-84/story.aspx?guid=%7BCC01CF82%2DC434%2D4C1E%2D97B5%2DFBEF11D78E44%7D&siteid=yhoof>

FLOUR AS A SOURCE OF NUTRITION??

Flour is an essential element of our daily life food products. Flour is a powder made from grinding wheat. Even though white flour is plentiful and cheaper, white flour is a poor choice for the human body because nutritional experts and medical data prove it. Flour has many kinds, and people all across the world consume floor in different forms, whether it is bread, cake, pasta, pastries, pizza or even in the form on Nan in eastern countries such as India. The availability and pricing of floor have always been major political and economic issues throughout the world as people consider flour as one of their basic requirements. Most flour in the U.S. is grown in the great plains of southern states. The most commonly used is red winter wheat. The process used by manufacturers today is roller milled. This process crushes the grain, which destroys the protein and vitamins. In the middle Ages refined flour was used by nobility, thus white flour began to be associated with wealth and status. White flour became available to the middle class Americans in 1870’s which lead to too many digestive disorders (dyspeptics). The history of flour is very old, and flour has been utilized by mankind since prehistoric times. Wheat goes through five stringent cleaning processes and is separated by grades. “Flour intended for baking bread is made from hard flour (containing 11-18% protein) it has more gluten allowing it to rise. Soft flour (containing 8-11% protein) is used for baking cakes and pastry”. Before wheat goes through the milling process to become flour, it goes through a cleaning and conditioning process to remove foreign material, poor quality grains, and or any infested kernels. The process is done with a verity of machines that uses air currents, magnets and screens to remove contaminants and the wheat from the chaff. Kernel size, friability, dimension, and density under impact are all qualities that can be exploited to effect separation.

Once upon a time many Americans believed food manufacturers of the country were keen to provide the consumers with nutrient enriched food, and it was at their best interest. However, this all changed with the increasing number of criticism that started to arise from all corners including media sources. Various documentaries began reporting on food manufacturer’s production practices and nutritional flaws in the manufacturing processes. Majority of the population in United States consumes wheat in the forms of bread. The bread itself goes through a manufacturing process, where the bread is bleached in chemicals resulting in loss of essential nutrients. “Two very important parts of wheat “Bran” and “Germ” are also removed during the manufacturing process which results in loss of almost every single bit of Vitamin E, and consumers end up getting poor quality protein and fattening starch”. Recent studies conducted by the “National Institute of health” shows that when companies claim to have refined the flour, most of the basic nutrition in flour is lost. To be precise 50% of all calcium, 70% of phosphorus, 80% iron, 98% magnesium, 75% manganese, 50% potassium, and 65% of copper is destroyed. If that is not bad enough, about 80% thiamin, 60% of riboflavin, 75% of niacin, 50% of pantothenic acid, and about 50% of Pyridoxine is also lost. There are four nutrients that are added back later in the refining process, however the consumer loses fifteen essential elements. Even thought white flour is plentiful and cheaper, white flour is a poor choice for the human body because the lack of nutrients is harmful for human health.

White flour is nothing but starch; it has great baking qualities and has almost no nutritional qualities. As we know by now, that the refining process eliminates many essential nutrients from the white flour and adds some unwanted forms of protein and starch so that they can label something under the nutrients section of their packaging. Nature produces the food in a very organized manner from its first bud to the final ready to eat form. Since thousands of years, the mankind has been eating non-refined flour which was more nutritious as compared to today’s refined flour. “There are some nutrients present in unrefined flour which are very helpful in tackling chronic diseases such as Cancer”. [Andrew W. Saul, Fire Your Doctor- How to be independently Healthy, Pp 35, ISBN 1591201381]

Wheat flour on the other hand is more nutritious than white flour. The whole wheat flour uses bran, germ, and endosperm however the white flour uses the endosperm only. In the preparation of wheat flour none of the nutrients are lost and therefore it can be considered as a better form of flour. One cup of Wheat flour includes “400 calories, 85 grams of carbohydrates, 16 grams of protein, 120 grams of weight, 2 grams fat, and 0.3 grams of saturated fats”. Whole wheat can be considered as very good source Calcium, Iron, fiber and other minerals like selenium. [Nutrition Fact and analysis, Retrieved on February 9, 2008 from website: http://www.nutritiondata.com/facts-C00001-01c21Ue.html]

The refined flour is not only less in nutrients but health disorders are among its other disadvantage. Simple sugar and refined carbohydrates require very less metabolism and therefore enter the blood stream very quickly. This causes the body to react in a different manner. First of all the Pancreas, the organ that regulates the amount of insulin released in the body is not able to deal with the heavy amount of sugar intake. Therefore, it releases more insulin into the body. This insulin includes sugar and starches. Secondly, “the result of all this chemical “warfare” is a dramatic drop in blood sugar (usually within the hour), and a resulting feeling of lethargy, mental confusion, weakness, and false feelings of “hunger”. [U.S department of Health]Sugar increases weight, which causes chronic diseases. If two groups are fed the same amount of calories in a day, group one takes its calories in sugar and refined products, and the other group takes its calories in fruits, vegetables and nuts we see that the group which consumes more amount of sugar and refined products gains more weight as compared to the second group. A breads level of sodium is a prime culprit in high blood pressure. Breads range from 90-300 mg per slice. However, since size and calories per slice vary so much, an easily gauged upper limit is two milligrams of sodium per calorie.

“Sugar consumption has risen 1,500 percent in the last 200 years.  Today, the average American consumes 150 pounds of sugar a year compared to the 12 pounds consumed in the early 1800s”. According to the U.S. Department of Agriculture, that is equal to 52 teaspoonfuls of added sugars per person per day. The U.S government is putting greater emphasis on the diets and dietary patterns now, it is time we educate our selves about the intake of certain foods and their side effects. Today is the time we realize how certain foods add to the miseries of a nation and find alternatives for it. When we consider white flour responsible for the weight gain we can also get alternatives such as Wheat flour and Rice Flour as alternatives. Complete wheat flour is more nutritious than white flour as mention earlier in this paper. The rice flour on the other hand is already used in great quantities in countries like India, Pakistan, Bangladesh, China, and other Middle Eastern countries.  These alternatives are high in nutrients and do have qualities to be the perfect substitute for white flour. White flour can be substituted with many other kinds of flours such as wheat flour, rice flour and so on. Wheat flour can be considered as best alternative for white flour because it is not much different is taste, yet it provides the consumer with all the essential nutrients required by a human body. Grinding wheat flour at home can also be a good option incase of unavailability [Marye Audet, Grind Whole Wheat Flour at home, and Retrieved on February 9, 2008 from website: http://hubpages.com/hub/Grind-flour]

It can be concluded that refined flour is not a very healthy food component and it may lead to obesity, cardiac diseases and many other chronic diseases as well. It is time we take responsibility to change the future. It usually takes up to 200 generations to adapt a certain change in the dietary patterns and right now our generation is not ready for this kind of change. Technology can be a blessing and can cause serious hazards as well; in this case the refining of flours is not only playing with our lives but also playing with the nature. The next time flour is purchased for the family pay close attention to the ingredients in it. Doing so will improve your health and that of those you love. We must take responsibility for our own health. If we don’t, who will? If this attitude is adapted by majority of people living all over the globe, we can and we will change the way things are done for the betterment of humanity.

REFERENCES

• http://www.answers.com/topic/whole-wheat-flour-1

• Nutrition Fact and analysis, Retrieved on February 9, 2008 from the website listed: http://www.nutritiondata.com/facts-C00001-01c21Ue.html

• Marye Audet, Grind Whole Wheat flour at home, Hub Pages website : http://hubpages.com/hub/Grind-flour

• Fire your doctor- how to be independently healthy?, Andrew D. Saul, Published 2005,Basic Health Publication Inc, ISBN 1591201381

BIBLIOGRAPHY:

• Fire your doctor- how to be independently healthy?, Andrew D. Saul, Published 2005,Basic Health Publication Inc, ISBN 1591201381

Intermediate Accounting

The bond’s price can be determined by discounting the contractual cash flows of the bond coupon at the stated interest rate, (Revsine, Collins, “Financial Reporting and Analysis 3rd Edition”, 2004). The selling price of the bond can be calculated from the interest rate and the principal amount that it is offering to the investors. If it wants to offer a premium for its bond then it will increase the selling price slightly higher than its face value since the investors are willing to accept the bonds interest rate at a lower value than what was written in its contract. If the investors on the other hand are not satisfied with the interest rate of the bond’s contract and the company is desperate to sell its bonds, then it can choose to sell its bonds at a discount in order to increase the effective interest rate of the bond that the investors are receiving.

On the debit side of the balance statement, the bond’s discounted value should show up in the Cash item. The bonds discount would also show up in the debit side and finally the total value of the bond which is the value printed in the coupon will show up in the credit side of the balance statement under the name of Bonds payable.

The item related to the issuance of the bond that would show up as part of the income statement for year 2008 is the interest that the bond is paying semi annually. This will show up as an interest earned in the income statement. There is also the Accrued interest payable that would show up on the credit side of the balance sheet statement. There is also the bond discount that would show up in the credit side of the balance statement.

The bond discount amortization using the effective interest amortization is going to be increasing as time progresses because the formula for computing it is dependent on the ever increasing bond net carrying amount at the start of each succeeding years. First of all, the bond net carrying amount at the start of the year is already computed as the basis for the rest of the computation, (Revsine, Collins, “Financial Reporting and Analysis 3rd Edition”, 2004). This value is multiplied by the interest rate and then subtracted by the face value of the bond printed on the coupons when it was first sold to the public. Then the bond discount balance is determined at the end of the year by subtracting the value at the end of the year with the previously determined bond discount amortized. You can check the accuracy of the figures when you try to add the values for the bond net carrying amount at the start of the year in its discounted value and then you add that to the bond discount amortized that was pre-calculated already as described here. The resulting amount should total the bond value that is printed in its coupon. So, basically, the resulting figure will be increasing since the bond net carrying amount is also ever increasing at the start of each year.

If the company is to retire the bonds later at 2009, then the company should simply put in the amount in cash and also the gain on the debt extinguishment. However, since the debt has been called in before its maturity, there might be instances where the extinguishment has created an accounting gain or loss depending on the current market interest rates. If the interest rates rise then the market price of the debt falls and if the interest rates fall, the market price of the debt rises and this is what creates the gains and losses for the company, (Revsine, Collins, “Financial Reporting and Analysis 3rd Edition”, 2004). Previously, the gains and losses are recorded in the extraordinary items but because of recent developments, the gains and losses are now subject to the rules of why they should be treated as extraordinary items to be listed in the income statement.

Bibliography:

Principles of Accounting, (2007)

http://www.principles-of-accounting.com/g.php?C=4801969&D=898970&domain=principles-of-accounting.com&K=principles+of+accounting&V=5168&K=principles+of+accounting

Revsine, Collins, “Financial Reporting and Analysis 3^rd Edition”, (2004)

In probability theory and statistics, correlation, (often measured as a correlation coefficient) , indicates the strength and direction of a linear relationship between two variables. In correlation research we do not (or at least try not to) influence any variables but only measure them and look for relations (correlations) between some set of variables, such as blood pressure and cholesterol level.

In the scientific method, an experiment is a set of observations performed in the context of solving a particular problem or question, to retain or falsify a hypothesis or research concerning phenomena. The experiment is a cornerstone in the empirical approach to acquiring deeper knowledge about the physical world. Experimental research is also called randomized controlled research or randomized controlled trials. In experimental research, we manipulate some variables and then measure the effects of this manipulation on other variables; for example, a researcher might artificially increase blood pressure and then record cholesterol level. Data analysis in experimental research also comes down to calculating “correlations” between variables, specifically, those manipulated and those affected by the manipulation. However, experimental data may potentially provide qualitatively better information: Only experimental data can conclusively demonstrate causal relations between variables. For example, if we found that whenever we change variable A then variable B changes, then we can conclude that “A influences B.” Data from correlation research can only be “interpreted” in causal terms based on some theories that we have, but correlation data cannot conclusively prove causality. Source: http://www.statsoft.com/textbook/stathome.html

A correlation or correlational coefficient is used to represent the relationship between two variables and  is often abbreviated with the letter ‘r.’  A correlational coefficient typically ranges between -1.0 and +1.0 and provides two important pieces of information regarding the relationship: Intensity and Direction. ‘r’ scores range from -1 to +1

r= -1, perfect negative relation
example of a negative r:  drinking in college and GPA

r= 0, no relation
example of a near zero r:   hair length and GPA

r= +1, perfect positive relation
example of a positive r: GPA and scores on SAT

This in not done by behavioural surveys but based on physical experiments. Whereas, correlation research is performed in behavioural issues for which every thing cannot be measured in exact figures.

Suitability of correlation method:

The correlation is suitable when researchers want to know a way to measure how associated or related two variables are. The researcher looks at things that already exist and determines if and in what way those things are related to each other. Things may be related positively or negatively. The purpose of doing correlations is to allow us to make a prediction about one variable based on what we know about another variable.   Correlation is not causation. It doesn’t define cause and effect of the relation between two variables. Such type of research are used in education, employment etc.

For example, there is a correlation between income and education. We find that people with higher income have more years of education. (You can also phrase it that people with more years of education have higher income.) When we know there is a correlation between two variables, we can make a prediction. If we know a group’s income, we can predict their years

Suitability of experimental method:

The experiment is appropriate as the method to use to demonstrate a cause and effect relationship between two variables. When researchers want to know about the cause of a behaviour or mental process, they should do an experiment. In an experiment, the researcher manipulates or changes the environment in a controlled way, then measures the effect of that manipulation.

For example, it is through experiments that we know that drinking alcohol causes slower reaction times. The experimenter can give a set amount of alcohol to a group of participants, and then measure their reaction times. If their time slows down after drinking the alcohol, we know the alcohol caused that effect.

Accuracy, Validity and significance of correlation method:

As mentioned before, the correlation coefficient (r) represents the linear relationship between two variables. If the correlation coefficient is squared, then the resulting value (r2, the coefficient of determination) will represent the proportion of common variation in the two variables (i.e., the “strength” or “magnitude” of the relationship). In order to evaluate the correlation between variables, it is important to know this “magnitude” or “strength” as well as the significance of the correlation.

Significance of Correlations. The significance level calculated for each correlation is a primary source of information about the reliability of the correlation. As explained before (see Elementary Concepts), the significance of a correlation coefficient of a particular magnitude will change depending on the size of the sample from which it was computed. The test of significance is based on the assumption that the distribution of the residual values (i.e., the deviations from the regression line) for the dependent variable y follows the normal distribution, and that the variability of the residual values is the same for all values of the independent variable x. However, Monte Carlo studies suggest that meeting those assumptions closely is not absolutely crucial if your sample size is not very small and when the departure from normality is not very large. It is impossible to formulate precise recommendations based on those Monte- Carlo results, but many researchers follow a rule of thumb that if your sample size is 50 or more then serious biases are unlikely, and if your sample size is over 100 then you should not be concerned at all with the normality assumptions. There are, however, much more common and serious threats to the validity of information that a correlation coefficient can provide; they are briefly discussed in the following paragraphs

Outliers are atypical (by definition), infrequent observations. Because of the way in which the regression line is determined (especially the fact that it is based on minimizing not the sum of simple distances but the sum of squares of distances of data points from the line), outliers have a profound influence on the slope of the regression line and consequently on the value of the correlation coefficient. A single outlier is capable of considerably changing the slope of the regression line and, consequently, the value of the correlation, as demonstrated in the following example. Note, that as shown on that illustration, just one outlier can be entirely responsible for a high value of the correlation that otherwise (without the outlier) would be close to zero. Needless to say, one should never base important conclusions on the value of the correlation coefficient alone (i.e., examining the respective scatterplot is always recommended).

Note that if the sample size is relatively small, then including or excluding specific data points that are not as clearly “outliers” as the one shown in the previous example may have a profound influence on the regression line (and the correlation coefficient). This is illustrated in the following example where we call the points being excluded “outliers;” one may argue, however, that they are not outliers but rather extreme values.

Typically, we believe that outliers represent a random error that we would like to be able to control. Unfortunately, there is no widely accepted method to remove outliers automatically (however, see the next paragraph), thus what we are left with is to identify any outliers by examining a scatterplot of each important correlation. Needless to say, outliers may not only artificially increase the value of a correlation coefficient, but they can also decrease the value of a “legitimate” correlation.

See also Confidence Ellipse.

Quantitative Approach to Outliers. Some researchers use quantitative methods to exclude outliers. For example, they exclude observations that are outside the range of ±2 standard deviations (or even ±1.5 sd’s) around the group or design cell mean. In some areas of research, such “cleaning” of the data is absolutely necessary. For example, in cognitive psychology research on reaction times, even if almost all scores in an experiment are in the range of 300-700 milliseconds, just a few “distracted reactions” of 10-15 seconds will completely change the overall picture. Unfortunately, defining an outlier is subjective (as it should be), and the decisions concerning how to identify them must be made on an individual basis (taking into account specific experimental paradigms and/or “accepted practice” and general research experience in the respective area). It should also be noted that in some rare cases, the relative frequency of outliers across a number of groups or cells of a design can be subjected to analysis and provide interpretable results. For example, outliers could be indicative of the occurrence of a phenomenon that is qualitatively different than the typical pattern observed or expected in the sample, thus the relative frequency of outliers could provide evidence of a relative frequency of departure from the process or phenomenon that is typical for the majority of cases in a group. See also Confidence Ellipse.

Correlations in Non-homogeneous Groups. A lack of homogeneity in the sample from which a correlation was calculated can be another factor that biases the value of the correlation. Imagine a case where a correlation coefficient is calculated from data points which came from two different experimental groups but this fact is ignored when the correlation is calculated. Let us assume that the experimental manipulation in one of the groups increased the values of both correlated variables and thus the data from each group form a distinctive “cloud” in the scatterplot (as shown in the graph below).

In such cases, a high correlation may result that is entirely due to the arrangement of the two groups, but which does not represent the “true” relation between the two variables, which may practically be equal to 0 (as could be seen if we looked at each group separately, see the following graph).

If you suspect the influence of such a phenomenon on your correlations and know how to identify such “subsets” of data, try to run the correlations separately in each subset of observations. If you do not know how to identify the hypothetical subsets, try to examine the data with some exploratory multivariate techniques (e.g., Cluster Analysis).

Nonlinear Relations between Variables. Another potential source of problems with the linear (Pearson r) correlation is the shape of the relation. As mentioned before, Pearson r measures a relation between two variables only to the extent to which it is linear; deviations from linearity will increase the total sum of squared distances from the regression line even if they represent a “true” and very close relationship between two variables. The possibility of such non-linear relationships is another reason why examining scatterplots is a necessary step in evaluating every correlation. For example, the following graph demonstrates an extremely strong correlation between the two variables which is not well described by the linear function.

Measuring Nonlinear Relations. What do you do if a correlation is strong but clearly nonlinear (as concluded from examining scatterplots)? Unfortunately, there is no simple answer to this question, because there is no easy-to-use equivalent of Pearson r that is capable of handling nonlinear relations. If the curve is monotonous (continuously decreasing or increasing) you could try to transform one or both of the variables to remove the curvilinearity and then recalculate the correlation. For example, a typical transformation used in such cases is the logarithmic function which will “squeeze” together the values at one end of the range. Another option available if the relation is monotonous is to try a nonparametric correlation (e.g., Spearman R, see Nonparametrics and Distribution Fitting) which is sensitive only to the ordinal arrangement of values, thus, by definition, it ignores monotonous curvilinearity. However, nonparametric correlations are generally less sensitive and sometimes this method will not produce any gains. Unfortunately, the two most precise methods are not easy to use and require a good deal of “experimentation” with the data. Therefore you could:

Try to identify the specific function that best describes the curve. After a function has been found, you can test its “goodness-of-fit” to your data.

Alternatively, you could experiment with dividing one of the variables into a number of segments (e.g., 4 or 5) of an equal width, treat this new variable as a grouping variable and run an analysis of variance on the data.

Exploratory Examination of Correlation Matrices. A common first step of many data analyses that involve more than a very few variables is to run a correlation matrix of all variables and then examine it for expected (and unexpected) significant relations. When this is done, you need to be aware of the general nature of statistical significance (see Elementary Concepts); specifically, if you run many tests (in this case, many correlations), then significant results will be found “surprisingly often” due to pure chance. For example, by definition, a coefficient significant at the .05 level will occur by chance once in every 20 coefficients. There is no “automatic” way to weed out the “true” correlations. Thus, you should treat all results that were not predicted or planned with particular caution and look for their consistency with other results; ultimately, though, the most conclusive (although costly) control for such a randomness factor is to replicate the study. This issue is general and it pertains to all analyses that involve “multiple comparisons and statistical significance.” This problem is also briefly discussed in the context of post-hoc comparisons of means and the Breakdowns option.

Casewise vs. Pairwise Deletion of Missing Data. The default way of deleting missing data while calculating a correlation matrix is to exclude all cases that have missing data in at least one of the selected variables; that is, by casewise deletion of missing data. Only this way will you get a “true” correlation matrix, where all correlations are obtained from the same set of observations. However, if missing data are randomly distributed across cases, you could easily end up with no “valid” cases in the data set, because each of them will have at least one missing data in some variable. The most common solution used in such instances is to use so-called pairwise deletion of missing data in correlation matrices, where a correlation between each pair of variables is calculated from all cases that have valid data on those two variables. In many instances there is nothing wrong with that method, especially when the total percentage of missing data is low, say 10%, and they are relatively randomly distributed between cases and variables. However, it may sometimes lead to serious problems.

For example, a systematic bias may result from a “hidden” systematic distribution of missing data, causing different correlation coefficients in the same correlation matrix to be based on different subsets of subjects. In addition to the possibly biased conclusions that you could derive from such “pairwise calculated” correlation matrices, real problems may occur when you subject such matrices to another analysis (e.g., multiple regression, factor analysis, or cluster analysis) that expects a “true correlation matrix,” with a certain level of consistency and “transitivity” between different coefficients. Thus, if you are using the pairwise method of deleting the missing data, be sure to examine the distribution of missing data across the cells of the matrix for possible systematic “patterns.”

How to Identify Biases Caused by the Bias due to Pairwise Deletion of Missing Data. If the pairwise deletion of missing data does not introduce any systematic bias to the correlation matrix, then all those pairwise descriptive statistics for one variable should be very similar. However, if they differ, then there are good reasons to suspect a bias. For example, if the mean (or standard deviation) of the values of variable A that were taken into account in calculating its correlation with variable B is much lower than the mean (or standard deviation) of those values of variable A that were used in calculating its correlation with variable C, then we would have good reason to suspect that those two correlations (A-B and A-C) are based on different subsets of data, and thus, that there is a bias in the correlation matrix caused by a non-random distribution of missing data.

Pairwise Deletion of Missing Data vs. Mean Substitution. Another common method to avoid loosing data due to casewise deletion is the so-called mean substitution of missing data (replacing all missing data in a variable by the mean of that variable). Mean substitution offers some advantages and some disadvantages as compared to pairwise deletion. Its main advantage is that it produces “internally consistent” sets of results (”true” correlation matrices). The main disadvantages are:

Mean substitution artificially decreases the variation of scores, and this decrease in individual variables is proportional to the number of missing data (i.e., the more missing data, the more “perfectly average scores” will be artificially added to the data set).

Because it substitutes missing data with artificially created “average” data points, mean substitution may considerably change the values of correlations.

Spurious Correlations. Although you cannot prove causal relations based on correlation coefficients (see Elementary Concepts), you can still identify so-called spurious correlations; that is, correlations that are due mostly to the influences of “other” variables. For example, there is a correlation between the total amount of losses in a fire and the number of firemen that were putting out the fire; however, what this correlation does not indicate is that if you call fewer firemen then you would lower the losses. There is a third variable (the initial size of the fire) that influences both the amount of losses and the number of firemen. If you “control” for this variable (e.g., consider only fires of a fixed size), then the correlation will either disappear or perhaps even change its sign. The main problem with spurious correlations is that we typically do not know what the “hidden” agent is. However, in cases when we know where to look, we can use partial correlations that control for (partial out) the influence of specified variables.

Are correlation coefficients “additive?” No, they are not. For example, an average of correlation coefficients in a number of samples does not represent an “average correlation” in all those samples. Because the value of the correlation coefficient is not a linear function of the magnitude of the relation between the variables, correlation coefficients cannot simply be averaged. In cases when you need to average correlations, they first have to be converted into additive measures. For example, before averaging, you can square them to obtain coefficients of determination which are additive (as explained before in this section), or convert them into so-called Fisher z values, which are also additive.

How to Determine Whether Two Correlation Coefficients are Significant. A test is available that will evaluate the significance of differences between two correlation coefficients in two samples. The outcome of this test depends not only on the size of the raw difference between the two coefficients but also on the size of the samples and on the size of the coefficients themselves. Consistent with the previously discussed principle, the larger the sample size, the smaller the effect that can be proven significant in that sample. In general, due to the fact that the reliability of the correlation coefficient increases with its absolute value, relatively small differences between large correlation coefficients can be significant. For example, a difference of .10 between two correlations may not be significant if the two coefficients are .15 and .25, although in the same sample, the same difference of .10 can be highly significant if the two coefficients are .80 and .90.

Positive correlation

In a positive correlation, as the values of one of the variables increase, the values of the second variable also increase. Likewise, as the value of one of the variables decreases, the value of the other variable also decreases. The example above of income and education is a positive correlation. People with higher incomes also tend to have more years of education. People with fewer years of education tend to have lower income.

Advantage

1. An advantage of the correlation method is that we can make predictions about things when we know about correlations. If two variables are correlated, we can predict one based on the other. For example, we know that SAT scores and college achievement are positively correlated. So when college admission officials want to predict who is likely to succeed at their schools, they will choose students with high SAT scores.

We know that years of education and years of jail time are negatively correlated. Prison officials can predict that people who have spent more years in jail will need remedial education, not college classes.

Disadvantage

1. The problem that most students have with the correlation method is remembering that correlation does not measure cause. Take a minute and chant to yourself: Correlation is not Causation! Correlation is not Causation! I always have my in-class students chant this, yet some still forget this very crucial principle.

We know that education and income are positively correlated. We do not know if one caused the other. It might be that having more education causes a person to earn a higher income. It might be that having a higher income allows a person to go to school more. It might also be some third variable.

A correlation tells us that the two variables are related, but we cannot say anything about whether one caused the other. This method does not allow us to come to any conclusions about cause and effect.