Financial Planning (Insurance) Case Study Essay

Allison has recently been promoted by her employer, Best Marketing, and now earns $135,000 p. a. working full time. She has commenced salary sacrificing 30% of this amount into superannuation, and her employer contributes Superannuation Guarantee Contributions of 9% of her remaining cash salary. The fund is a balanced growth retail superannuation fund, MM Superannuation. Her current balance is $160,000 and earns on average 7% p. a. after fees and taxes. She also has $100,000 in term life and TPD insurance cover within her superannuation fund. She drives a 4-year old Land Cruiser that is fully paid for. It has low kilometres and she expects to keep it until she retires. She will then need $30,000 to purchase a new car on top of the trade in she expects to receive from the Land Cruiser. Simon works for Newbold’s Pty Ltd, a company which makes custom furniture. He earns around $45,000 p. a. and intends doing this work for the foreseeable future. He is supplied with a work vehicle and his employer pays his SGC based on his $45,000 salary. Simon has $47,000 in superannuation savings, held within the PP Superannuation Fund. The funds are invested in a balanced/ conservative portfolio with a low allocation to growth assets that earns around 4% p. a. after fees and taxes. They are living on a semi-rural property which is valued at around $750,000, but they currently have a mortgage of $150,000 as a line of credit. They are paying approximately $1,000 per month as interest-only payments. Their other personal expenses are around $40,000 p. a. and they spend an additional $15,000 p. a. on holidays. Aside from private health cover, car, and house and contents insurance, the only personal insurance they have is the coverage provided in Allison’s superannuation fund. They do not have a will or any powers of attorney but they want to ensure they have sufficient money for their grandchildren (now aged 6 and 4 years) to attend university. They estimate they will need to accumulate approximately $120,000 (in today’s dollars) over the next 12 years to pay for this. Allison wants to work for five or six more years and they wish to pay off the remainder of the mortgage over that time. She also wants to increase the amount of money in both her and Simon’s superannuation. When she retires she believes they will need $40,000 (in today’s dollars) for their living expenses in retirement, but Simon intends to continue working part time and estimates he will earn $20,000 p. a. They intend to use Simon’s income to fund any holidays. Aside from their superannuation assets, they have $9,000 in a bank account for emergencies earning 4% p. a. , $15,000 in a term deposit earning 5% p. a. and $12,000 in a cash management account earning 5. 5% p. . They are not happy with the taxation implications of these accounts, as any interest earned on the term deposit and cash management accounts seems to go in tax. You ascertain that they both have balanced risk profiles. Required: You are required to provide written responses to the following scenarios and questions, either in short answer form or using bullet points (or both). The following attachments are included : †¢ Sample Financial Services Guide (Personal Advice) †¢ Sample Fact Finder and Risk Profile Questionnaire †¢ Sample Ongoing Service Options – Establish Relationship with Client You are preparing for an initial interview with Simon and Allison Callahan. a) Give some thought to the sort of things you would cover. Include any legal requirements and other documentation which may be helpful in the interview. For the initial interview with the clients I would cover what Azza financial services stands for, their commitment to the customer and any legal implications, go over the financial services guide (send out with letter before hand) and privacy policy and compliance. I would also make the customers aware that the information they are providing is to be used solely for the purposes of assessing their situation to help them get to a better financial position. I would allow the customers to do most of the talking, recording their responses in a fact finder, and ask the client to complete a risk profile questionnaire to get a feel for what their financial position is at the present, what kind of expectations they have on Azza financial services, how much risk they are willing to take on and if there is anything about their situation that might prevent Azza financial from providing advice to the client. )How might you ask the client to prepare for the first meeting? By sending a confirmation letter indicating how long the interview will likely be, the purpose of the interview and what is the outcome intended, advising the client if there are to be any fees paid, providing the client with a list of documents to bring (eg current insurance policies, sup er statements, current investment schemes, income and expenses, latest tax returns, valuations of assets such as property, bank and credit card statements. ) To establish a relationship with Simon and Allison, what strategies might you use to build rapport during the interview process? †¢ offer food or drink (eg coffee, biscuits, tea, water) †¢ monitor client body language and engage in similar movements to make them feel more comfortable †¢ ask open ended questions to show clients you are interested in the personally and want to hear what they have to say. d)What are the four points you must cover when presenting a Financial Services Guide? Fees and charges = explain what fees might be applicable, including benefits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented †¢ Products = outline the features of the products and services being recommended †¢ Complaints Policies and Procedure s = make sure to completely explain the procedures for handling customer complaints †¢ Relationships = explain any relationships which might influence which products are recommended or provided e)List the type of fees you could charge the clients. What are the benefits of explaining these fees to the Callahans? Types of fees which could be charged to the clients if they choose to implement the prepared plan are: plan fees (often charged regardless if plan is accepted), commissions, entry fees, management fees, account keeping fees. The benefits of explaining these fees to the clients are that there will be no nasty surprises and they will know what they are getting themselves into from the start. It also provides protection for the advisor in the event that the client deems something unreasonable. In other words, there will be no misunderstandings about the possible cost of advice. )Nominate the range of financial products and services you will be providing advice in. Name the benefits of explaining these to your clients. The financial services and products which I could be providing advice on range from simplistic things such as bank deposit accounts to general and life insurance, complex and simple investment schemes, general and specialized superannuation schemes, estate planning issues (although a lot will be directed to a solicitor if I am not qualified to provide advice on that particular area, the same goes with taxation). The benefit of explaining these to the client is that they will be more aware of what it is Azza financial services can help them with, and if they will need to be involving any third parties to complete their requirements (eg accountant or solicitor). It also takes away any misconceptions as to the outcome of the advice provided and puts everyone on the same level expectation wise. The clients also may not have been aware of particular products and services offered which once explained may change their needs and requirements which might have not previously been considered by the client. )Outline the three steps your clients should take if they have a complaint or dispute prior to contacting the ASIC. †¢ Clients should first contact their advisor to make sure that their disatisfaction is not due to a misunderstanding or something which can be ammended to their satisfaction. I would endeavour to solve their complaint within 3 working days. †¢ If the clients are still unhappy , they should lodge a formal complaint with the liscensees internal complaints process and allow appropriate time for this to be acted upon. If the clients are still unsatisfied with the outcome they may then contact the Finance Industry Ombudsman Service (FOS) for complaints involving losses of less than $500,000. FOS first trys to negociate and outcome between the involved parties, if this is not possible the matter is passed for formal assesemnt by a panel. FOS is free to clients and the decisions it makes are law to the liscensee. 2-Identify Client Objectives and Financial Situation a) What techniques or tools could you use to gather further information about your client’s goals, objectives and financial situation? Fact finder †¢ Financial documentation – tax returns, statements, scheme overviews etc †¢ Use of open ended questions †¢ Diagnostic questionnaires †¢ Risk profiling b)Using your case study, complete the attached Fact Finder with as mu ch information as you can. Remember that this document is used to collect current information as well as identify any issues, problems or constraints that may be relevant in developing your advice. See Fact Finder i)From the scenario in your case study, write down one or more specific financial goals for the generic needs provided. Wealth creation for a specific purpose |Start increasing Allison and Simons Super balances ($160K and $47K) | | |Pay for grandchildren’s university in 12 years – estimated needed | | |$120K in today’s dollars | |Wealth protection |Take out Personal insurances to avoid eroding savings if something | | |unforeseen happens – income protection, trauma, evaluation of current | | life and TPD | |Debt reduction |Pay off IO mortgage of $150K in 5 years | |Tax minimization |Save on tax on bank accounts/term deposits | | |Possibly downsize family home and move mortgage to investment property| | |to save on tax | |Superannuation |Start in creasing Allison and Simons Super balances ($160K and $47K) | | |and evaluate suitability of current funds | |Investment Planning |Possibly purchase Investment property to produce another income stream| | |and save on current tax | | |Look into other investment options to diversify current wealth | |Estate Planning |Establish will and power of attorney with solicitor | c)Write down a line of questioning that you would use in the initial interview to increase your understanding and obtain further clarification of the client’s goals and objectives. Use open-ended questions starting with What, How, When, Why and Where. †¢ Apart from what we have already discussed, tell me about any other goals, long or short term that you might have. †¢ What do you plan to do when you retire? †¢ What is your current state of health? Eg do you smoke, are you aware of any issues that could affect your ability to work? †¢ Simon, what sort of duties do you perform at work? (- for insurance purposes we need to ascertain what type of work Simon is doing in order to now which category he fits, A/B/C? ) †¢ What are the contact details of your accountant? (- Financials) †¢ If you have a solicitor, what are their details? power of attorney, will) †¢ What are your plans/goals in relation to the planning of your estate? †¢ Tell me what other possible financial details you could have overlooked in filling out the fact finder? (- no credit cards? No shares or any investments outside of super and regular bank accounts? ) †¢ What level of cash reserve do you feel comfortable keeping liquid for emergencies, and are you expecting to receive a lump sum of money in the future? †¢ What are the premium details of your current life and general insurance policies? †¢ When are you considering downsizing the family home, if at all? d) What action would you take immediately after the first meeting? Immediately after the first interview I would Clearly write down everything which needs to be investigated or researched, in relation to what types of products, tax issues, possible strategies, the sources of information and a timeline for completion. This is so that I can prove I have been compliant with the corporations Acts requirement of investigating the ‘subject matter of the advice’. I would ask the clients to sign an authority accepting the preparation and research of drawing up a financial plan and agreeing to pay any fee which may be incurred as a result of this advice. e) Simon and Allison have a ‘balanced’ risk profile. Complete the sample Risk Profile Questionnaire to reflect this. See risk profile 3- Analyse Client Objectives & Financial Situation Will Simon and Allison’s current financial circumstances and other concerns meet their objectives without your assistance? a) Why/why not? No, Simon and Allison’s current financial set up is not adequate to allow them to meet their goals and objectives. This is because they are note contributing enough in their superannuation to achieve their desired balances, they do not have any estate plans in place, their current bank accounts are leaving them paying excess tax, they are not sure how to structure their expenses in order to reach a comfortable position upon retirement in 5 years time, and their personal insurance are grossly insufficient to keep them in their current lifestyle and meet expenses should something happen to one of them. ) List the assumptions you made. †¢ Allison and Simon do not have current solicitor whom they have talked about creating a will or power of attorney with †¢ Allison and Simon are of average intelligence and have not had much to do with Financial planning services in the past. †¢ Allison and Simon do not know much about investment schemes, Superannuation regulations, Life insurance or Taxation †¢ Allison and Simon have used an Accountant in the past to prepare their yearly tax returns †¢ The average expected rate of return is 6% †¢ Expected CPI is 3% and current tax rates have been used. c) Reference information sources that you have relied on in forming your view. RG146 training Australia DFS course material and scenario †¢ Australian Taxation Office website (www. ato. gov. au) †¢ Financial Planning association website (www. fpa. asn. au) †¢ Westpac and BT Financial group case studies (internal) 4 – Develop Appropriate Strategies & Solutions a) Describe two research processes you can use to gather information about products and services you recommend to your clients. †¢ Independent research houses (eg Standard and Poors and Morning Star) †¢ Internet sear ches eg ASX, AFPA, ATO etc †¢ Product disclosures, rankings, past performance of companies, Financial review newspaper etc Refer to your case study, Fact Finder and Risk Profile Develop a strategy for each of the following points for Simon and Allison. Describe each of your strategies in terms of key characteristics, advantages and disadvantages. b) Please address Allison’s insurance requirements. Your response should include a brief description of each type of cover and actual amounts recommended. Include calculations and explanations of amounts. †¢ Term Life: – term life insurance provides a bulk payment to the beneificiaries of a person upon their death, or in some cases when disgnosed with a terminal illness the person insured can also received the payment. – offered to people from 16-75 and can renewed until age 99. Can be paid via stepped premiums (where premium increases with age, you pay more in the long run) or level premiums (same amount througout policy, 30% cheaper than stepped in long run, and indexed to CPI) – Advantages of having life insurance are that it gives the insured peace of mind knowing that they are n ot leaving their loved ones in poor financial positions upon their death and ensures they are looked after – Disadvatanges are that there are a few exclusions to the policy such as suicide within first 13 months, War, pre-existing conditions, aids, and terminal illness/disease where it is a direct result from an action which was self-inflicited. – Currenlty Allison has $100,000 worth of life and TPD insurance within her superannuation. In regards to life insurance this is unfortunately inadequate as the estimated living costs for Allison and Simon are $67,000 per anum. In order for Simon to continue meeting these expenses (whilst still working) if allison were to becomed deceased, the insured amount would need to be close to $475,000. This is because if invested at an average fixed deposit rate of 6% it would provide an income stream of $28,500 per anum to Simon. [(475000/100) x 6 = 28,500] – this along with his current net salary of $38490 come to a per anum income strem of $66,990 to meet expenses. An additional $270K should also be added to cover their existing mortgage debt and to have money left over in order to pay for the grandchildrens university education, bringing the total life benefit to $745,000. †¢ Income protection: – A fortnightly or monthly payment paid to the insured in the event that they suffer and injury or illness which leaves them unable to work – Maximum of 75% of income can be insured and person must be employed at least 25 hours per week. Waiting periods of 14-720 dys apply and benefits periods can be 1-65 years (longer the beenfit period the higher the premium) – 2 types of policies are agreed value (specified value to be paid regardless of difference bet ween insureds current and former incomes) indemnity (benefit based on insured income at time of claim. – Advantages are that the insurance provides peace of mind knowing that if the insured was to suffer from an injury or illness and are unable to generate an income that the benfit will be paid as if it were their regular income, giving them peace of mind that they could stay on top of all their financial commitments and goals whilst healing. Disadvantges are that as income protection is linked to employment, those who are unemployed or even those with occupations which are considered too risky are not able to obtain income proteciton insurance. Also, as the benefit is only 75% of income, the insured will be 25% worse off and will need to make sure this will not affect any financial commitments or goals they may have. – Allison currently does not have income protection insurance in place which could end diasterously as she earns 75% of the couples gross income. [(180,0 00/100) x 75 = 135,000)]. Allison should take out an income protection policy with a $101,250 benefit (135,000-25%) which would then provide both her and Simon peace of mind knowing that if anything was to happen they could continue paying their expenses †¢ Total and Permanent Disability: TPD insurance provides a lump sum payment to the insured after a qualifying period (usually six months) when certain criteria is met. – Criteria can be inability to perform own occupation, any occupation, home duties or all duties; these are based on the type of work the insured is in (rated AAA-E) – Immediate qualification for TPD payout if insured looses sight or a limb – Advantages of having TPD is that if the insured suffers a debiltating injury that sees them unable to return to work that they can still meet their expenses – Disadvantages are that it is not available to everyone; a new policy cannot be taken out after 60 and policies already in place automatica lly cease when insured reaches 65. Also unless rated category E, the standard level of cover criteria is ‘any occupation’, meaning that the insured may be able to perform in a role significantly less stimulating, challenging and financilally rewarding which would make them ineglibly to receive a payout even if they suffer a total and permanent diability. – As Allison and Simons expenses are $67,00 p/a and Allisons income protection benefit is $101,250, whilst Allisons still working a stand alone TPD policy would be beneficial for having a lump sum to pay off the exisiting mortgage debt of $150K, have enough money to pay for the grandchildrens university ($120K) and possible medical expenses (another $150K) – totalling a $420K TPD. Another amount for Living expenses should also be considered for the 6 years until retirement ($67,000 x 6 years = $402,000). This brings the total recommended TPD benefit to $822K which could also be bundled as a rider on Allisons life insurance to avoid overinsurrance. †¢ Trauma: – Trauma insurance provides the insured with a bulk payment when they suffer from an illness specified in the policy – Can be bundled with life insurance and a payout will decrease the life policy by the same amount – Available to people aged 16-55, or trauma for children aged 1-12 years ( waiting periods and age limit criteria apply) – Advantages are that as trauma insurance is not related to employment, people with uninsurable occuppations can still generally take out trauma insurance. Also the insurance provides peace of mind knowing that if the isured was to suffer from a specified illness and are unable to generate an income that the sum paid will cover their expenses and ease the financial pressure – Disadvanages are that there are exclusions such as death within 3 to 30 days of trauma event, trauma caused by an ntentional self inflicted injury or attempted suicide and acts of war. – In order to avoid overinsurance Allison should take out around $250K trauma insurance to cover $150K exisiting mortage debt and any medical expenses associated with the event. Allisons Income protection will also most likely be able to contribute towards the benefit amount should a defined event occur. c)Does Simon require personal insurance? If so, what types and how much? Please include reasons and calculations Simon could take out the following polices to provide stability and peace of mind for Allison in the event something should happen to him. †¢ Term Life, Trauma, TPD: As Allisons income (or insurance benefit if something were to happen to her simultaneously) alone can support the couples expenses of $67,000, I would recommend a combined life insurance, TPD and Trauma policy, of $690K for Simon [(salary of $45,000 x 6 years = $27,000) + $150K mortgage debt + $150K possible medical espenses + $120K grandchildrens education = $690,000), so that the mortgage can be paid out, the grandchildrens education can be paid for, any medical expenses which might be incurred can be paid, and a replacement income stream for simon is created leaving allison debt free if something were to happen to Simon. †¢ Income protection: It is my view that Income protection is not necessary for simon as allisons income is more than adequate to support the couple with money left over, however if they did not want to draw on this, an income protection policy could be put in place for 75% of his income. [$45,000 x 75% = $33750 ($33750 / 12 = $2812. 5]. this w ould mean Simons monthly benefit woul be $2812. 5 (75% of his monthly income). D) What is the most efficient way for Simon to contribute to superannuation and why? How much should Simon contribute? As Simon is on the lower end of the income tax scale, it is beneficial for him to make non-concessional contributions into his superannuation as he is eligible for government co-contributions for every $1 he puts in up to $1000. As Allison is on a higher MRT than Simon, if she were to salary sacrifice a larger portion of her income into both their superannuation accounts (shes currently Sacrificing $40,000 into her own, however this could be brought up to $70,000 and then she could sacrifice another $20,000 per anum into Simons in line with their goals of increasing their super balances) they would be paying less tax (as Allison in on the highest MRT and super contributions are at 15%) and they can use Simons income (on lower MRT) to put towards their expenses, thus Simon should not contribute too from his salary above the SG of 9% and non-concessional contributions past $1000 (as his super will be paid in by Allison to achieve the above stated tax advantages). Simon should also switch his investment strategy to a balanced mix as it is too conservative to his risk profile at the present. e)Is Allison contributing sufficient funds to superannuation at this time to meet their retirement objectives? Please explain. To meet their objectives of having $40,000 per anum to live off in retirement, Allison is not contributing enough to her superannuation at this point in time. Allowing for the effects of compounding interest, after 5 years Allison’s superannuation balance would have accumulated to $224,400 (at 7%). In order to provide an income stream of $40,000 Allison will need to bring her balance up to $580,000 by the time she retires in 5 years. This means Allison will need to make up the difference ($580,000 – $224,400 = $355,600) in the next five years. Allison will need to contribute another $30,000 p/a [($355,600/5 = $71,120) – her current Salary Sacrifice of $40,500 = $30,000] to her superannuation to achieve this balance and their retirement objectives. Allisons current total superannuation contributions per anum are $40,500 in salary sacrifice (30% of salary of $135,000) along with a Superannuation guarantee of 9% of her remaining salary ($135,000 – $40,500 = $94,500, $94,500 x 9% = $8505) bringing her total contribution to $49,005. f) Are their additional benefits available to Simon or Allison as a result of your strategies above? By Allison salary sacrificing more of her income she is saving astronomical amounts on tax as the contributions tax is only 15% as opposed to her MRT. As stated previously, Simon will also be eligible for the government co-contributions with his non-concessional contributions. Allison’s income protection policy (and Simons if taken out) are also tax deductible. Simon is also eligible for the low income tax offset of $804 from a maximum of $1350 for income earners of under $30,000. For Simon his amount is worked out with the following calculations: 1. [$1350 – ($45,000 taxable income -$30,000 threshold) x 4% = 546] and then 2. $1350 – 546 = $804) g)What is your recommendation regarding an investment for the grandchildren’s university education? What are the benefits of this investment? For the grandchildren’s education I would recommend investing in a balanced education savings plan (they would need to contribute $7000 p/a (at approx 7%, and with the effects of compounding interest) to reach their goal of $120,000 in 12 years) as the amount invested in taxed at a flat internal company rate of 30% however after 10 years the amounts can be withdrawn for non education purposes tax free, and as the investment is to be over 12 years Allison and Simon could take advantage of this. If it was to be withdrawn earlier, they are still in a good position as the money would be invested with a bit more risk than that of an everyday savings account and the taxation benefits still outweigh other methods, especially with the low income offset which is still said to be increasing. h) Are their bank/cash investments (total $36,000) meeting their requirements? Why/why not? What do you recommend? No, currently these investments are not meeting Allison and Simons requirements as they are held in both names and are therefore subject to Allison’s higher MRT. If Allison and Simon decided to use the advantages provided by income splitting (that is, transferring term deposits and interest bearing accounts into Simons name) then they would save on tax as Simon has a lower MRT. Allison and Simon could also think of putting this money in their Superannuation to capitalize on the 15% contributions tax or putting it into the mortgage as then they are paying less interest, however this would depend on whether or not they would be needing to keep this money liquid for everyday use and emergencies. i) How would you address their goals of paying out their home loan and purchasing the new car upon retirement? In order to pay out their home loan in 5 years time, Allison and Simon would eed to put around $40,000 P/A towards due to interest payable. After Allison’s extra salary sacrificing for both their Super accounts, the couple have around $45,000 surplus disposable income per anum. $40,000 can be used to make these extra payments on the home loan and the other $5000 can be put into a high interest savings account for the 5 years (which if invested at the average deposit rate of 6% will leave them with $29576. 10 after 5 years with the effects of compounding interest) which will leave them with enough money to purchase the new car. j) Are their estate planning preparations adequate? Why/why not? Currently Allison and Simon have no estate plan, therefore it being inadequate. I would recommend to Allison and Simon to contact their solicitor to discuss a will/power of attorney using their information we have uncovered through analyzing their financial situation here today. k)What alternative strategies did you consider? Why did you reject them? Insurance – providing insurances for Simon as well; This would be over insuring and wasting money for Allison and Simon as Simons income in relatively small in comparison to Allison’s, and she is able to cover all costs if something we to happen to Simon. Superannuation – Simon contributing more to his superannuation; the tax benefits of Allison’s salary sacrifice through decreasing her MRT far outweigh that of Simons and it was therefore better to prioritise with Allison’s SS and utilize Simon’s income for expenses. Investments – For the grandchildren’s university education, possibly investing in something more risky (eg shares) or less risky (eg Term deposits) however the tax advantages and return on the educations savings plan in comparison would leave them in a better position. 5 – Present Strategies and Negotiate Solutions Prior to Presentation a)Describe what preparations you would undertake to present your strategies in step 4 to Simon and Allison. After thorough research enabling me to form my recommendations, I would prepare a Statement of Advice with my findings, make sure to gather all product disclosure statements which are relevant, and information to back up my advice. I would also make sure there was a financial services guide within the information I would be taking to the interview. I would then call the clients to arrange a time which suits. b) What back-up information or documentation might you need? I might need to back up the performance of particular products/services I recommend (this could be provided in the form of company reports, asx reports, PDS, articles, academic studies etc) also easy to follow breakdowns of any calculations made so the client can see exactly how the strategy will benfit them. FSG and Privacy policy to assure the client of the companies principles and policies in the event of a dispute. During the Presentation c) Describe the disclosure principles and presentation requirements you must adhere to for the following documents: ? Statement of Advice The statement of advice must have â€Å"statement of advice† written across the front of it, it must be in non complex wording (â€Å"clear, concise and effective manner†), must have a â€Å"generic description of the range of financial products or strategies considered and investigated†¦Ã¢â‚¬ . The customer must receive a copy, along with PDS and FSG and must have signed and had the SOA presented to them BEFORE any implementation of strategies can be put in place. A disclaimer is also usually placed at the bottom of the SOA to protect the financial planner and affiliated companies against the working of case law – althogh this is not required by the corporations act. ? Product Disclosure Statement – The PDS needs to accompany the SOA so the clients have all the information in relation to possible products they are signing up to. Other things which need to be in the PDS include: Fees and charges = explain what fees might be applicable, including ben efits and commissions that could be received by 3rd parties/referrers or product providers as a result of the plan being implemented ? Products = outline the features of the products and services being recommended ? Complaints Policies and Procedures = make sure to completely explain the procedures for handling customer complaints ? Relationships = explain any relationships which might influence which products are recommended or provided d)List 2 objections or concerns your client might raise. How would you address these in order to gain agreement? 1. How do I know that what you recommend will work out for me in the long run? – We have based these recommendations on previous performance of these products and services, all of which you have sighted with your eyes. We cannot 100% guarantee that these potential outcomes listed will occur, however financial planning is what we specialise in and we make it our duty to look after your financial health. If we notice that the course which we have mapped out for you is not heading in the direction we have anticipated, you will be the first to know, and we will review your situation in order to alter your plan to best fit your needs, provided you would like us to provide you with this ongoing service. 2. This plan fee seems overly expensive – why do I have to pay it? – It takes a considerable amount of time, research, investigation and preparation for us to put together a plan that is tailored entirely according to your personal needs. There are no generics or assumptions made with what we are presenting you and the savings and earnings you will make as a result of our guidance will far outweigh the cost of this information. 6 – Implement Agreed Plan Simon and Allison have agreed to your plan. a) What transactional documents/authorities need to be signed by Simon and Allison? †¢ Authority to proceed / SOA and disclaimer †¢ Application forms along with PDS attached †¢ A cheque to be written to accompany application form b) Complete an Implementation Plan, in order, that details your planned actions now that Callahan’s have decided to proceed with your recommendations in step 4, providing an indication of when each must be completed. A – Adviser C – Client | No. Action |Who |When | | |Sign Authority to Proceed |C |Now | | |Provide 3rd parties with adequate notification of actions needed to be taken eg solicitor, accountant |A |ASAP | | |Complete application forms ready for c lient to sign |A |ASAP | | |Present application forms to client with PDS attached to be signed. |A + C |When ready | | |Photocopy, keep one and give other with PDS to client. | | | |Obtain Cheque from Client and attach to application form to be sent to dealer group |A |With step 4 | | |Welcome letter from dealer is issued |A /Dealer |- | | |Secure client file established (maintained for 7 years) |A |- | | |Confirm with clients that they have received welcome letter and they have heard from any 3rd parties. |A |- | | |Speak to clients about Review Service |A |When everything| | | | |is settled | 7 – Provide ongoing service You now have to address the issue of providing ongoing advice to Allison and Simon. )What environmental (economic, market, regulatory) changes, or changes to their personal or financial situation would cause a review of their plan? †¢ Interest rate changed may affect tax advantages, investment earnings †¢ New regulatory changes may grandfather or c ompletely remove current strategies in place †¢ Market booms and busts may cause portfolio mix to be outdated / underperforming †¢ Clients may have suffered a loss, or injury causing them to claim and or need to reassess the financial commitments they can keep up with †¢ Clients may have come into a considerable amount of money unexpectedly allowing for more room to move in current strategy (e. g. inheritance, lotto) Change of advisor may bring upon new light on their situation, may have a better strategy in mind. b)Describe 2 activities you regularly undertake to keep up-to-date with current legal, ethical and regulatory requirements of the finance sector. †¢ Read financial review/finance news, current company legal updates †¢ Read the AFPA reports issued and newsletter from BT financial and liaise with current financial planners c)What level of ongoing service would you propose for these clients? ( â€Å"No service† ( â€Å"Portfolio valuation† ( â€Å"Portfolio review† ( â€Å"Financial Plan review† ( â€Å"Other† – Describe d)Describe the option recommended for your client, and why you have recommended this option. Describe the level of service you will provide and the associated fees. I would recommend an annual portfolio review for Allison and Simon to ensure that they are on track to achieving their goals. This would involve checking balances and fund mixes to ensure adequate returns have been made and that products are performing as anticipated. I would prepare a letter to send out based on my finding advising whether or not a change could benefit them. As the strategies recommended for Allison and Simone are fairly basic a separate fee would not be necessary as this service would be considered to be paid for under the trail commissions. Sample Fact Finder & Risk Questionnaire 1. PERSONAL DETAILS |CLIENT 1 |CLIENT 2 | |Title: |Mrs |Mr | |Given Name: |Allison |Simon | |Preferred Name: |Allison |Simon | |Surname: |Callahan |Callahan | |Date of Birth: |1956 |1958 | |Marital Status: |M |M | | | | | Home Address: |Address: Lot 3 Wattle Road | | | | | |Suburb/Town: Hurstbridge | | |State: VIC Pos tcode: | |Home Telephone No. | | |Preferred Contact No. | | | | | | | | CHILD / DEPENDENT DETAILS Name: |Megan | | | | |Relationship: |Daughter | | | | |Date of Birth: |1981 | | | | |Current Age: |29 | | | | |Financially Dependent: |NO | | | | HEALTH DETAILS Do you Smoke: |Yes / No |Yes / No | |State of Health: |Poor / Good / Excellent |Poor / Good / Excellent | |Are you aware of any health issues that may| | | |impact your ability to earn an income? | | | |(please provide details) | | | |Notes: | 2. EMPLOYMENT DETAILS |CLIENT 1 |CLIENT 2 | |Employment Status: |( Unemployed |( Unemployed | | |( Full Time Employed |( Full Time Employed | | |( Self Employed |( Self Employed | | |( Part-time |( Part-time | | |( Retired |( Retired | | |( Other |( Other | |Employer Name: |Best Marketing |Newbolds Pty Ltd | |Position Title: |Marketing |Employee | |Primary Duties: |Marketing |Custom Furniture | |Work Address: | | | |Current Work Phone No. : | | | |Employment Security: |Secure – just promoted |Secure – intention to stay long term | |Are you Contemplating leaving your employer? |In 5-6 years |Not in the foreseeable future | |Do you foresee any substantial change in |Planned retirement in 5-6 years, possible |In 5-6 years will reduce hours to part time | |your income in the next 2-5 years? reduction in take home pay in the lead up to|– income will be approx $20K p/a | | |this | | |Notes: | | | OTHER ADVISER DETAILS Accountant |Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes ( No Solicitor Name: | | |Company: | | |Contact Detail: | | Do we have authority to contact? ( Yes( No ESTATE PLANNING DETAILS | |CLIENT 1 |CLIENT 2 | |Do you have a current Will? |No |No | |Date of Will / Last Reviewed: | | | |Power of attorney |No |No | |Type / Name of Attorney? | | |Do you have Funeral Plans? |No |No | |Do you have any specific intentions |Intention to pay for grandchildren’s |Intention to pay for grandchildrenâ€℠¢s | |regarding your estate distribution? |university in the approx 12 years (approx |university in the approx 12 years (approx | | |$120K in today’s dollars) |$120K in today’s dollars) | 3. FUTURE NEEDS OBJECTIVE AND GOALS |E. g. Current income needs, retirement income needs, diversification, tax minimisation, capital growth, investment security, wealth creation, | |eliminate mortgage etc | |Reasons for seeking financial advice | |Gain assistance with making the transition to retirement and planning the next five years | | | | | |Short Term (1 to 3 years) | |Save on tax on bank accounts/term deposits through possibly restructure | |Start increasing Allison and Simons Super balances ($160K and $47K) | |Look into other investment options to diversify current wealth | |Medium Term (4 to 7 years) | |Pay off IO mortgage of $150K in 5 years | |Buy new car (through trade in 9 year old land cruiser) worth $30K In 5 years | |Have a $40K (today’s dollars) p/a retirement income stream in 5 years | |Long Term (7 year plus) | |Pay for grandchildren’s university in 12 years – estimated needed $120K in | |today’s dollars | | | | | RETIREMENT PLANNING Retirement Details |CLIENT 1 |CLIENT 2 | |Plan ned Retirement Age: |59/60 |undetermined | |Retirement Income required: |$40K (today’s dollar) |$40K (today’s dollar) | |After retirement, do you intend to work |NO |Expected Income= | |again either on a full-time or part-time | |$20K | |basis? |Till age: undetermined | |What capital expenses will you have in |$ |$ | |retirement? (Please state expense and | | | |value) | | | |Would you like some assets left to your |$ |$ | |estate? Please detail) | | | |Notes: | | | | | 4. FINANCIAL DETAILS PERSONAL BALANCE SHEET Lifestyle Assets | |Owner |Date Acquired |Value |Associated Debt | |Principal Residence: |Allison and Simon | |$750,000 |$150,000 | Contents: | | | | | |Motor Vehicle/s : |Allison |2006 |Land Cruiser |No debt | |Caravan / Boat / Trailer: | | | | | |Investment Property: | | | | | |Other: | | | | | | | | | | | | | | | | | | | | | | | |Total | | | | | Investment Assets Investment | | | | | | | | | | | INCOME DETAILS | |CLIENT 1 |CLIENT 2 | |Income: |$135,000 |$45 ,000 | |Investment Income: |$1770 p/a interest (bank accounts) |$1770 p/a interest (bank accounts) | |Centrelink Income: | | |Pension/Annuity Income | | | |Other Income: | | | | Less Income Tax |$38554 |$7580 | | Less Medicare Levy |$2050 |$700 | |Total Net Income |$94426 |$38490 | |Combined Net Income |$132,916 | EXPENSE DETAILS |COMBINED | | |Food: | | | |Entertainment: |$15,000 | | |Transport/Vehicle: | | | |Council Rates: | | | |Amenities: | | | |Rent: | | | |Mortgage Repayments: |$12,000 | | |Other |$40,000 | | |Total |$67,000 | | SURPLUS DISPOSABLE INCOME | |COMBINED | | |Annual: |$65,916 | | |Monthly: |$5,493 | | PLANNED MAJOR EXPENSES |Nature of Expense |Approx. Expense Amount |Expected Date | |Grandchildren’s university |$120,000 in today’s dollars |12 years | |Purchase new car |$30,000 |5/6 years | | | | | | | | | |What cash reserve do you require for | | | |emergencies or unforeseen expenses? | | | |Are you expecting a future lump sum or | | | |inheritance? | | | |If so, how much? | | |Notes | | | 5. SUPERANNUATION & INSURANCE SUPERANNUATION |Company |Policy No. |Employer/ Personal | |Are any of the above policies preserved? | |No | |Has a tax deduction been claimed for part/all? |Yes |No | |Are there any exit fees applicable? |Yes |No | LEAVE PAYMENTS Type |Expected Receipt Date |Anticipated Amount | |Annual: | | | |Long Service: | | | |Other: | | | |Have you recently received a redundancy package? |Yes |No | |If you have recently received a redundancy package, please provide notice of payments. | GENERAL INSURANCE Insurance Description |Policy Number |Owner |Date Commenced |Sum Insured |Premium Payable | |Term Life and TPD |Allison |$100,000 | | | | | | | | | | | | | | | | | | | | | | | | | |Notes: | | | 6. INVESTOR RISK PROFILE Your attitude to risk is probably the most important factor to consider before investing. To achieve higher returns, you will have to be prepared to accept a higher risk of capital loss. This is because the funds and assets that offer high returns are generally more volatile than those producing lower returns. It is what we call ‘risk/return trade off’. We will recommend investment strategies to match your investments to your risk profile. Investing across the various investment sectors according to your risk profile is called diversification. For example, instead of investing only in property, or only in shares, you might invest a proportion in both, or even include cash or fixed interest to create a balanced portfolio. You are a balanced investor who wants a diversified portfolio to work towards medium to long-term financial goals. You require an investment strategy that will cope with the effects of tax and inflation. Calculated risks will be accepted to help you achieve good returns. 17 – 23 Moderately Conservative – A Low Risk Taker You are a moderately conservative investor seeking better than basic returns, but risk must be low. Typically an older investor seeking to protect wealth that you have accumulated, you may be prepared to consider less aggressive growth investments. 9 – 16 Conservative – A Very Low Risk Taker You are a conservative investor. Risk must be very low and you are prepared to accept lower returns to protect capital. The negative effects of tax and inflation will not concern you, provided your initial investment is protected. 7. CLIENT STATEMENT / AUTHORISATION |I/We herby declare that the information set out in this form is true and correct to the best of my/our knowledge. | |I/We are not aware of any other information and have not disclosed to the person to whom this form is given any other information | |which would be relevant to the making of a recommendation by a Mentor Financial Planning Representative. | |I/We give permission for this information to be used for the preparation of my/our financial plan and I/we understand that the | |investment recommendations will be based solely on the information supplied in this form. | | |I/We also acknowledge that: | |( |I/we have received, read and understood the Financial Services Guide before any advisory services were provided; | |( |I/we permit this document to be passed in confidence to any member of Mentor Financial Planning Pty Ltd; | |( |Lim ited Information Provided | | |I/We have provided limited financial information. I/We have limited the product(s) or objective(s) that can be advised on | | |to: | | |If you are seeking limited advice of a particular nature you must make this known at the time of the interview and you | | |should recognise that the recommendations will only relate to that limited advice being sought and may not be appropriate | | |considering your overall situation and objectives. | |( |Tax File Number Permission | | |I/We give permission for my/our tax file number(s) as provided, to be held only by Mentor Financial Planning and be | | |forwarded to financial institutions as requested or as necessary. |( |Engagement Application | | |I/We request that Mentor Financial Planning investigate research and provide suitable options to the financial objectives | | |outlined in this questionnaire. | | | | | |I/We understand that the preparation fee of $500 is payable for the work to be undertaken. This fee may be credited | | |against my establishment fee should I/We proceed to implement any of the recommendations provided by Mentor Financial | | |Planning. | | |Client 1 | |Client 2 | | | | | |Signature: | | | | | | | | | |Date: | | | | |8. Adviser’s Declaration | I declare that: a) the information contained in the Fact Finder is an accurate and complete record of the information obtained from the client(s); b) The client(s) was provided with a copy of the Financial Services Guides before any advisory services were provided. |Adviser’s Signature | |Date | | | |Additional Important Information for the Client(s) | |If incomplete or limited financial information has been provided: | | | |I, as your Adviser, will not be able to undertake a full needs analysis of your individual investment objectives, financial situation | |and particular needs; | |There is a possibility that any recommendation given to you may not be fully appropriate to your individual objectives and needs, | |especially those which I, as the Adviser, do not know; and | |You as the client must carefully ssess the appropriateness of the recommendations to your own individual investment objectives, | |financial situation and particular needs before acting on them. | To Whom It May Concern Please accept this letter as my/our authority to provide any information requested and documentation if required to Azza Financial Planning (or their representative). Please accept a photocopy or facsimile of this letter, as the original will remain on file at the offices of Mentor Financial Planning. Correspondence should be sent to Level 2, 349 Collins Street Melbourne VIC 3000 This authority should remain in force until withdrawn in writing by me/us. Thankyou. |Allison Callahan | | | |Client 1 Name | |Signature | | | |Simon Callahan | | | | | |Signature | | |Client 2 Name | | | | | | | | | |Client 1 D. O. B. | |Client 2 D. O. B. | | | |___/___/___ | |___/___/___ | | | | | |Lot 3, wattle road, Hurstbridge, VIC | |Address | | | | | On Going Service Options 1. The â€Å"No serviceâ €  option This generally relates to a one off investment placement based on the agreed investment strategy in the financial plan. In choosing this option, no ongoing service or review of the financial plan and the investment portfolio is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 2. The â€Å"Portfolio valuation† option This service provides reports on the value of your investment portfolio only. The fee charged will depend on the frequency of the reports. In choosing this option, no ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 3. The â€Å"Portfolio review† option This service provides reports on the value of your investment portfolio. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $N/A but this may be higher depending on the complexity of the review. This service includes: An annual/half yearly/quarterly review of your existing investment portfolio and its performance looking at further investment opportunities, if appropriate establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio In choosing this option, o ongoing service or review of the financial plan is provided to the client unless specifically requested by the client or upon the recommendation of the planner. 4. The â€Å"Financial Plan review† option This service provides for an annual/half yearly/quarterly review of the overall financial plan strategy and the investment portfolio recommend ed. Each review will be presented in the manner of a written report and recommendations. The fee to be charged will depend on the frequency of the reviews and will be agreed at the time. The minimum fee is $__500________, but this may be higher depending on the complexity of the review. This service includes: roviding reports on the value of your investment portfolio; an annual/half yearly/quarterly review (including comments) of your existing investment portfolio and its performance; looking at further investment opportunities, if appropriate; establishing if there have been any changes in legislation, the economic environment and state of the financial markets that may impact on your recommended investment portfolio and the overall financial plan strategy; establish if there have been any changes to your personal circumstances or financial goals and objectives; ascertain if the overall financial plan and the investment portfolio is continuing to meet your financial goals and objec tives (including an insurance review); and making any new recommendations (if necessary).

The Origins of Sociology

FK8R 34 Sociology A: Introduction to Sociology Alisha Walsh In the mid 1800’s, French author Auguste Comte came up with the term â€Å"sociology†. Although previous philosophers, historians and political thinkers had studied and tried to make sense of their societies, this was when it began to develop as a distinctive science. Comte grew up in a time of great social and political upheaval. As the world rapidly changed, he and others began to study the societies they lived in.He sought to create a science of society that could explain the laws of the social world just as science explained the functioning of the physical world. (Giddens 2006:11) Throughout the eighteenth and nineteenth century political revolutions occurring throughout Europe, the Enlightenment and the Industrial Revolution all lead to previously unseen changes in many societies. The French Revolution of 1789 meant that monarchs of Europe came under severe scrutiny. Subjects began to question their  "divine right† to rule.Ideas of individuals’ rights and their say in how society was run emerged. Political parties and social reform quickly followed. Great scientific discoveries formed a perspective of looking to science and reason to answer questions about the natural and social world. People were turning away from the church, religion and superstition for these answers. The Industrial Revolution 1780-1800 had a profound effect on Britain and laterally Europe. Almost all aspects of life were changed as people became part of the factory system.People moved from rural areas and agricultural jobs to towns where social life was more impersonal and anonymous. They began to work by a clock instead of the rhythms of the season. Traditional values and roles were dropped as new ones evolved. To study Sociology, one must have what C. Wright Mills called a â€Å"sociological imagination†. Sociological thinking and imagination requires us to remove ourselves from our eve ryday lives and experience, and look at them differently. Only then can we realise that individual experience can actually reflect larger issues.He emphasised the difference between â€Å"personal troubles of millue† and â€Å"public issues of social structure†(Mills 2000 :5) This means that the sociological imagination allows us to see that public issues such as war, marriage, the economy, urbanisation etc, can affect the individual as well as personal circumstance and experiences. â€Å"The sociological imagination enables us to grasp history and biography and the relations between the two. That is its task and its promise. †(Mills 2000:2) He stated that sociologists must ask three crucial questions: What is the structure of this particular society?Where does this society stand in human history? What varieties of men and women prevail in this society and in the coming period? (Mills 200:3) He believed that as individuals these questions would help us make sens e of our own place and experience in the society we live in and identify its structures and characteristics. He also stated that â€Å"they are the questions inevitably raised by any mind possessing the sociological imagination. For that imagination is the capacity to shift form one perspective to another†.The sociological imagination allows us to be analytical and critical of the world and to look at the bigger picture. There are many sociological theories which attempt to explain how society works. They provide a framework for explaining social behaviour. They find the relation between individuals, groups and society. These theories can be put into two broad categories, macro theories and micro theories. Macro theories such as Functionalism and Marxism look to explaining behaviour through the notion of social structures and look at society holistically.Macro theories tend to use quantitive research when a social theory or model is being explored. Data has to be measurable a nd proccessed mathematically (surveys) to provide unbiased results that can be measured, compared and related to large parts of society (Amit B. Marvasti 2004:7). Micro theories such as social action and symbolic interaction look at individual behaviour and how small scale interactions shape society. Micro theories use qualitive research methods, concentrating on smaller groups but providing more detailed analysis and descriptions of human experience.The experiment can be based around a theory and results are recorded as detailed, narrative descriptions as opposed to numerical codes found in quantitive research (Amit B. Mavasti 2004:10) Functionalism analyses how social structures explain behaviour. Interdependent parts of society have to function together to create a whole system. Biological or mechanical analogies are often used. Functionalism emphasises integration, harmony, stability and continuity. It is a positive perspective that views even tragedies or inequality as serving a function in society. McClelland2001:1) It looks at society as a whole and is good at explaining the persistence of social phenomena (anomie). Marxism also focuses on social structures but is a conflict theory. Society is made up of infrastructure and superstructure. This structure is based on the inequality of distribution of production and causes conflict. It recognises different power interests in groups and is good at explaining conflict and change ( SparkNotes Editors 2006). Social Action theory emphasises the intentional behaviour of individuals as the cause of social structure.Individuals shape society as a result of intentional individual or group interaction. It concentrates on the meaning of social behaviour and its interpretation by others and is good at explaining small scale interactions. According to Anthony Giddens , good sociology must examine both social structures and social interactions. It is how a fuller understanding of social life is achieved (Giddens2005:25) . Socialization, Social order and Social Stratification are three key concepts in sociology that try to explain the relationship between the individual and society.Social order is the way in which societies’ basic requirements are met to exist, how peace and order is maintained. It is obtained formally through laws and through the use of social norms, roles and values. It involves a set of linked structures, institutions and practices that can maintain and enforce conformity and social order (Dr Almog 1998). Functionalist theory views individuals as contributing to social order by happily playing out their occupied roles within social institutions. These roles are guided by the norms and values we learn through socialization and are necessary for society to function (Dr Almog 1998).Marxist theory claims that social order is forced on the individual, norms and values are used by institutions that want to maintain capitalism. They are a way to control the working class (Giddens 2006: 301-302). Social Action theory sees social order as a product of social interactions, symbolic meanings and how they are interpreted by others. The individual is a social actor who will interpret and process social stimuli and makes choices accordingly. Socialization is a lifelong learning process and plays a crucial part in forming our identities. It is the process by which individuals learn the culture of their society† (Haralambos & Holborn 2008:3). The important stage of socialization occurs during infancy. The child learns many basic behaviour patterns of its society by responding to the approval or disapproval of their parents and also by copying their example. In western societies, the educational system, religion, the mass media, the occupational group and peer groups are also important in the socialisation process ( Haralambos & Holbor2008:3).Functionalist theory believes that socialisation reinforces the social structure and maintains society. That it is functional and beneficial to social order. It transfers culture, norms and values to new generations and integrates individuals into society. It is the social glue that holds society together and helps create a sense of harmony and cooperation (Kent McClelland 2001). Marxism sees socialization as one of the most effective tools of the Bourgeoisie.It legitimises existing social inequalities and prepares the individual for a class related role they will fill indefinitely (SparkNotes Editors 2006). Social Action theory believes socialization is relevant in relation to symbols and their interpretation, the development of social identity and the small scale interactions that shape it. Socialisation helps maintain social order (Cardiff University 2010). Social Stratification is the ranking and ordering of individuals within a society. It is a structured hierarchy which leads to divisions and higher status, wealth and privilege for some groups.Social class is the stratification system f ound in modern industrial societies like the UK, but it can also occur due to other attributes such as gender, age, religious education or military rank (Giddens 2006:295) Members of a particular strata will share a similar lifestyle and common identity which will to some extent distinguish them from members of other social strata (H & H 2008:19) A functionalist perspective of social stratification is that it is based on meritocracy and is therefore an inevitable part of all societies.Talcott Parsons believed that social stratifications are a basic expression of shared values which are an essential part of a functioning society. Social stratification is functional because it integrates various groups in society (H& H2008:21) Marxism regards stratification as a divisive structure rather than an integrated one. It is seen as a mechanism for the ruling class to exploit the subject class, rather than a means of furthering collective goals (H & H 2008:27). Various institution s such as legal and political systems are used to dominate the subject class resulting in conflict (H & H 2008:28).Social action theory focuses on how a persons’ social standing affects their everyday interactions. According to Max Webber, social stratification not only involves class but also status and party (social status and political power) (Giddens 2006:302-303). Social action theory studies the processes behind stereotypes, mixed interactions and labelling. Its notes how stratification is a way to put people in groups and questions how much power individuals in these groups have to realise their goals (Cardiff University 2010) ReferencesHaralambos & Holborn (2008) Sociology Themes and Perspectives , 7th Edition, London, Harper Collins Anthony Giddens (2006) Sociology, 5th Edition, Cambridge, Polity Press Amit B. Mavasti (2004) Qualititive Research in Sociology, London, Sage Publications Ltd C. Wright Mills (2000) The Sociological Imagination, 40th Edition, New York , Oxford University Press Inc World Wide Web Page Kent McClelland, Grinnel College 2001 Functionalism (Online) Available: web. grinnel. edu/courses/soc/s00/soc111-01/IntroTheories/Functionalism. tml SparkNotes Editors 2006 Sparknote on Sociology Major Figures (Online) Available: http://www. sparknotes. com/sociology/major-figures/ (Acceseed 31 October 2012) Dr Oz Almog, Electronic Journal of Sociology 1998 The Problem of Social Type: A Review (Online) Available:www. sociology. org/content/vol003. 004/almog. html (Accessed 31 October 2012) Angus Bancroft and Sionead Rogers, Cardiff University 2010 Max Weber-Natural Science, Social Science and Value Relevance (Online) http://www. cf. ac. uk/socsi/undergraduate/introsoc/weber6. html

Men costume Speech or Presentation Example | Topics and Well Written Essays - 500 words

Men costume - Speech or Presentation Example The men in those times preferred a starched white shirt along with a white waist length linen. The dress shirts used in formal occasions did not have stitched buttons but rather had holes through which the studs could be passed to close the shirt. The collar was attached to shirt and the cufflinks were used to close the cuffs. A bow tie and a hat was used to finish the complete formal outfit in those times. In a less formal occasion a tuxedo would be used by the gentlemen in those times which always had a black tie to go with it. For a business trip the gentlemen in those times used a different type of apparel which consisted of a jacket a trouser and a vest of any colour. These business men preferred a slipknot tie known as ascot rather than a bowtie. The jackets that these people used were longer and roomier and the trousers which they used had cuffs and buttons. Young men going to the college preferred styles of those celebrities who were seen on the screens. The young generation preferred to settle with golfing knickers which were famous in those days along with a loose trouser. The sweaters these young men preferred were V shaped and they usually wore it over dress shirts. In the middle of the 1920s it was also seen that the young men preferred wearing baggy trousers which reached over to their knickers. Along with the trousers they wore jackets which had a front pocket.

Is biomedical model out of date Essay Example | Topics and Well Written Essays - 1500 words

Is biomedical model out of date - Essay Example It is based on 'the notion of the body as a machine, of disease as the consequence of breakdown of the machine, and of the doctor's task as repair of the machine.' (George Engel 1977). This approach has a serious shortcoming because by focusing on smaller parts of the body we lose the sight of patient as a human being. Also by considering health as proper functioning of organs, we are unable to deal with the phenomenon of healing as it is not only based on physical factors but on psychological factors of the human body. The concept of health and the concept of life are closely related. Around the globe, people follow different cultures and lifestyles. They are adapted to the different environment and slight change in the environment may lead to change in their health. Patterns of mortality and morbidity have changed shifting from a predominance of acute infectious diseases to a predominance of chronic and lifestyle-induced illness (US. Department of Health, Education and Welfare 1979 ). So here the ecological dimension is also considered while considering the concept of health. This contradicts the biomedical model.In the biomedical model, health is defined as the absence of disease. The World Health Organization defines health as ‘a dynamic state of complete physical, mental, spiritual and social well-being and not merely the absence of disease or infirmity’. This clearly shows that the biomedical model fails to address the social and psychological issues and thus can be considered to be outdated.

Financing Health Information Technology in Health Services Research Paper

Financing Health Information Technology in Health Services Organization - Research Paper Example The paper also examines the cost-effectiveness and cost efficiencies together with outcomes of implementing health information technology. According to Clarke (2009), health information technology (HIT) has emerged as a critical aid to the transformation of health care service provision. It serves as an electronic health record, a platform for information sharing and a data warehouse. It is also a clinical decision-making support system and a physician practice management system. It also serves the critical functions of scheduling and billing. Organizations considering implementing a HIT system have to critically consider the possible Return on Investment in the chosen system. Returns vary in timing, value, certainty and in recipient. These returns may be either financial or non-financial like better health outcomes, safety owing to legible records and better quality of life. There are also other returns that accrue to other parties rather than the one making the investment. These include patients who get to avoid hospitalizations, and networking benefits that accrue to other actors in the system. Some of the key HIT system functions include decision support for health care providers, electronic health records, computerized data entry, results management and administrative functions. To determine the Return on Investment, one has to look at the different components of the health information technology system and examine their effects. According to Kolodner, Cohn and Friedman (2008), paper-based information management has very limited capacity given the large volume and complexity of transactions in health care, the need to integrate new scientific approaches and technologies and other aspects of information management. Systems such as the Computerized Physician Order Entry (CPOE) simplify the management of information and seamlessly integrate co-related data for easy information access. The RIO of

Exercise and sport Genetics Essay Example | Topics and Well Written Essays - 500 words

Exercise and sport Genetics - Essay Example lear families provided the earliest data to on the heritability of variations in fitness-related traits (Bouchard, Leon, Rao, Skinner, Wilmore, & Gagnon, 1995). In these studies, 130 two-generation families were monitored for different responses to an aerobic exercise program implemented for twenty weeks. Oxygen uptake, stroke volume, cardiac output, and exercise heart rate response to training were found to be heritable. Genetics was also found to influence other variables such as skeletal muscle strength and performance, muscle adaptation to endurance exercise, explosive power, muscle strength, and their response to training. Segregation analysis showed that mostly single genes are responsible for phenotypic variation in some traits like oxygen uptake at the ventilator threshold (Feitosa, et al., 2002). These findings have resulted in the identification of polymorphisms and genetic loci that contribute to human physical performance. Genome-wide linkage analyses and genetic associations identified cardiorespiratory and skeletal muscle performance genes. Studies using the HERITAGE family cohort (Bouchard et al. 1995) identified linkage peaks associated with genetic variation in maximal oxygen uptake, power output, exercise stroke volume, blood pressure, body fat distribution, glucose and insulin metabolism (MacArthur & North, 2005). Association studies have further identified three candidate genes involved with cardiorespiratory function. The first was CKMM, which encodes for the cytosolic muscle isoform of creatine kinase, is responsible for the rapid regeneration of ATP during intensive muscle contraction. This gene was associated with exercise performance (Rivera, et al., 1997). Second was the angiotensinogen gene, AGT, M235T missense polymorphism, which has positive association with several measures of cardiorespiratory performance (McCole, et al., 2002). Missense polymorphisms in the ADRB2 gene for the ÃŽ ²2 -adrenergic receptor were also found to be associated

Choice & Manipulation PowerPoint Presentation Example | Topics and Well Written Essays - 1000 words

Choice & Manipulation - PowerPoint Presentation Example v. Kelly Ayotte, Attorney General of New Hampshire was an important case that decided on the right of the information providers to sell the data related to the prescribing practices of doctors to pharmaceutical companies (Halbert & Ingulli, 2010). The pharmaceutical companies used this information to streamline their detailing strategies, which were already under shadow owing to some questionable practices. The law under question was based on the reason that the pharmaceutical companies used the prescriber specific data to invade doctor privacy and to promote the sale of branded preparations, which augmented the overall cost of providing health facilities to the people (Halbert & Ingulli, 2010, p. 235). The court subscribed to the Central Hudson line of analysis to gauge the constitutionality of this law. Though, the court agreed with the AG’s premise that the restraining of health costs as envisaged by this law was a valid state interest, it felt that this in no way authentic ally proved that the patented drugs caused more harm as compared to generic salts or in any way interfered with the goal of promoting public health (Halbert & Ingulli, 2010). Besides, the court also concluded that the state could resort to many other institutional measures to counter balance the impact of detailing and did not need to restrain pharmaceutical companies from accessing information that they could use to make their marketing strategies more sophisticated (Halbert & Ingulli, 2010, p. 237). Hornell Brewing Company v. State was another important case that delved on the legality and ethics of advertising. Hornell named one of its products, Crazy Horse, which happened to be the name of an esteemed Native American leader (Halbert & Ingulli, 2010, p. 239). The state banned Hornell from...   Ã‚   The law under question was based on the reason that the pharmaceutical companies used the prescriber specific data to invade doctor privacy and to promote the sale of branded preparations, which augmented the overall cost of providing health facilities to the people (Halbert & Ingulli, 2010, p. 235). The court subscribed to the Central Hudson line of analysis to gauge the constitutionality of this law. Though, the court agreed with the AG’s premise that the restraining of health costs as envisaged by this law was a valid state interest, it felt that this in no way authentically proved that the patented drugs caused more harm as compared to generic salts or in any way interfered with the goal of promoting public health (Halbert & Ingulli, 2010). Besides, the court also concluded that the state could resort to many other institutional measures to counter balance the impact of detailing and did not need to restrain pharmaceutical companies from accessing information that they could use to make their marketing strategies more sophisticated (Halbert & Ingulli, 2010, p. 237).  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚   Hornell Brewing Company v. State was another important case that delved on the legality and ethics of advertising. Hornell named one of its products, Crazy Horse, which happened to be the name of an esteemed Native American leader (Halbert & Ingulli, 2010, p. 239). The state banned Hornell from using this name, holding that it hurt the Native American sentiments and made this community more vulnerable to alcoholism (Halbert & Ingulli, 2010, p. 239).

Theory and Knowledge Development in Nursing Essay

Theory and Knowledge Development in Nursing - Essay Example And the methods used to apply knowledge can be differed according to the convenience and particularity of the situations. Nursing is both a profession and a discipline nursing as field profession is a practice and when we consider it as knowledge it is a discipline. There are a number of theories advocated by scientists. Theories are definitely the backbone of any discipline and nursing is no exception here. Here I would like to make a brief explanation on the components of theory. Theory consists concepts that are inevitable for practice guidance. Nursing theories are formed out of concepts, definitions assumptions with or without the help of other disciplines or derived from different particular instances; and there are a number of inter- relationships made between them for predicting, explaining and prescribing things (Nursing Theories: An Overview). Theories universally contain concepts, prepositions, metaparadigm, philosophies and conceptual models. Concepts are occurred in mind as ideas on a phenomenon. This is an intellectual process through intuition. They indicate and signify ideas observations or experiences. For instance, relief can be an idea in nursing. Concepts can be useful in creating knowledge on phenomena. These concepts also are supported by constructs. Generally concepts are of three kinds; empirical, inferential and abstract. A statement of relationship between two concepts are said to be prepositions. Structural holarchy of contemporary nursing knowledge include components like metaparadigm, conceptual models, theories, and empirical indicators and their level of abstraction differs; and concepts and propositions are the important to explain a theory (Lesson, 2.1) There are several theories of nursing used by the practitioners today; and those theories are grouped into divisions according to the nature and functions of the theory. Nursing theories can be classified from different categories. Depending on its function it can be divided into four namely, descriptic, explanatory, predictive and perspective. Based on generalisability of their principles they are divided into Meta theory and grand theory. Middle range theory and practice theory are the third one based on the principles of the discipline. Looking from the stand point of philosophy, it can be needs theories, interaction theories, outcome theories and humanistic theories. But the important classification is into grand theories and middle range theories. Prominent among the theories today are Orland nursing theory, Newman theory, Parse theory, Peplaun Theory and Watson Theory. There are also theories called borrowed, which are adopted from other disciplines. Grand theories are the most abstract in nature. Grand theories are instrumental in making nursing as a science. Grand theories are built up on concepts and propositions that are less abstract. These theories are difficult to be practiced in daily nursing tasks. On the other hand middle range theory is mor e concrete. Middle range theories are originated from conceptual models directly. So, they are very much useful in current nursing practice. Middle range theories are of high middle level, middle- middle level and low middle level. 2. The meaning of metaparadigm of nursing? A metaparadigm is considered to be the way to describe concepts that concern any profession or domain. This concept was firstly introduced in early 1970’s.

Report on Herbal Medicine Essay Example for Free

Report on Herbal Medicine Essay 1. Herbal medicine is the oldest form of healthcare known to mankind. Herbs had been used by all cultures throughout history, In 2735 B.C., the Chinese emperor Shen Nong wrote an authoritative treatise on herbs that is still in use today. 2. The World Health Organization (WHO) estimates that 4 billion people, 80% of the world population, presently use herbal medicine for some aspect of primary health care. indeed, about 25% of the prescription drugs dispensed in the United States contain at least one active ingredient derived from plant material. 3. Today, research confirms that the herb boosts the immune system by stimulating the production of disease-fighting white blood cells. 4. WHO notes that of 119 plant-derived pharmaceutical medicines, about 74% are used in modern medicine in ways that correlated directly with their traditional uses as plant medicines by native cultures. 5. Herbs take many forms like capsule, tablet, tea, tincture, bath, compress, poultice and ointment. 6. Like any kind of remedies Herbs have advantages and disadvantages you have to ask your Doctor before take any of it, Generally Herbs dont have any serious dangerous on our health thats the reason why millions of people use it around the world. Conclusion Scientific experts and users of the Herbs are divided about its benefits. However, Herbal medicine is considered to be safe. Recommendations 1. Any medicine herbal or otherwise has the potential to have a adverse effects (or side effects). 2. Herbal medicines can also interact with other medicines you are taking. This could result in reduced or enhanced effects of the other medicines, including side effects. If you are consulting your doctor or pharmacist about your health or are about to have surgery or an operation, always tell them about any herbal medicines you are taking. 3. As with all medicines, keep herbal medicines out of the sight and reach of children.

Wilfred Owen War Poet Essay Example for Free

Wilfred Owen War Poet Essay The first Word War which took place mostly in Europe from 1914 to 1918 left millions dead and shaped the modern world. After World War I poets started to write about their experiences. Most of these poets had been soldiers who wrote the poetry to reflect the horror of their experiences in an immediate and realistic way. Trench warfare in particular and the chaos of war in general were the source of the poems indignation and disgust. The high death rate and the horrific conditions suffered by those fighting in the trenches meant that the concept of ‘heroic sacrifice’ in service to one’s country became meaningless. Patriotic poetry was therefore replaced with poems that were to symbolize the futility of war, protesting against the waste of life and forcing its readers to engage emotionally with reality. Within this essay I will look at the effects the war had on soldiers who fought in the trenches and how they dealt with the unimaginable numbers of deaths they encountered daily. I will explore the way they were able to cope with the grief and loss and how attitudes towards death and mourning changed as a result of the war. Throughout this piece I will focus on one particular soldier, Wilfred Owen, and the poetry he wrote about the loss of lives and the effect that his writing had on the mourning and memories of those left behind. In writings on World War 1, the enactment of grief is often overshadowed by the drama of battle, as in the wider conflict where loss is born; grief leaves no one unaffected by its devastation. Writing, whether in the form of poetry or letters, allowed the soldiers to share their anguish as a way of coming to terms with their harrowing loss and sense of guilt as survivors. Before the war there was a system of both public and private grieving and mourning. Mourners wore black and the period of mourning was dependent upon the relationship to the deceased. Funerals could be elaborate affairs depending on social class and many of these conventions were shaped by religious and Christian beliefs which enforced a public respectability in the grieving process. After the war broke out however, death in combat demanded that soldiers and their relatives express their grief in a new way. Without the remnants of a body, or the ritual of a funeral, their descriptions through their writings were more than just words. The details of death which soldiers conveyed, offered an emotional comfort to families, but at the same time their words would also scar those families for life. Surrounded by unimaginable numbers of their comrades who had died prematurely, soldiers fumbled to find a voice to convey the meaning of such circumstances. Letter writing for many became a way they could attempt to control the chaos which surrounded them, but a few soldiers began to make sense of it all through poetry. Some critics believed Wilfred Owen to be the most individual and best of the war poets. He forged a new kind of elegy upon the anvil of modern industrialised warfare. The best of Owens poems were to be written between the summer of 1917 and autumn 1918 after meeting another poet, Siegfried Sassoon, at Craiglockhart Hospital. Owens poetry after his experiences in the trenches moved his poems towards a powerful realism where the observations are disturbing, for him the war was a tragedy and beneath the surface disgust, lays a pity and compassion that raised his poetry above simple propaganda. Some of his poems from the war help us to rethink the elegiac triad of; mourning poet, mourning reader, and mourned victim, suggesting that even in war elegies; both poet and reader may partly create the victimisation they mourn. He brought a profound but sceptical understanding of the resources available to the mourning poet in the sonnets ‘Anthem for Doomed Youth’ and ‘Futility’; he resisted the traditional conventions of an elegy. ‘Anthem’ is a collective elegy for the nameless many and ‘Futility’ an elegy for a single man. Critics often treat the elegy as a therapeutic device: working through grief, creating an aesthetic substitution for loss, the elegist masters or at least manages pain. Many of Owens elegies do not fit this therapeutic model. Their task, it seems, is to maintain a certain amount of suffering, not to effect a cure; they produce not a yield of pleasure but an aggravation of pain. Some of Owens critics accuse him of consolatory mourning in ‘Anthem for Doomed Youth’ suggesting that Owen participates in the religious ideology of compensatory exchange, urging us to accept memory as a substitute for human lives. The enormity of the loss of lives precludes any of the traditional rituals of consolation mourning; all that remains is the suffering of unfocused grief down an endless recession of time, and ‘each slow dusk a drawing down of blinds’. ‘Anthem for Doomed Youth’ was written whilst Owen was in Craiglockhart with the encouragement of Sassoon. It is in sonnet form and is an elegy where he relates to the youth, these were very young men whose lives were most definitely doomed. Owen immediately engages readers with the use of questions as though interrogating them. He asks a question in the first line of each stanza, following with his answers for the remainder of the stanza. His first question ‘What passing-bells for these who die as cattle? ’ (1) suggests he feels the tribute made to dead soldiers is insufficient. Are they merely cattle being sent to slaughter whose lives of little importance? His second question, ‘What candles may be held to speed them all? ’ (9), shows his belief that people do not understand the nature of these deaths as he looks at how the community responds to their loss through ritual. Where we might expect the religious lexis to offer hope in a time of despair, he sees it as a mockery of the sacrifices being made. For Owen, it is not the outward show of public rituals, ‘the candles’ and ‘flowers’ that is meaningful, but inner reflection. The first part of the poem contains words made to sound like the war and weapons, ‘guns’, ‘rifles’, ‘shells’ which are ironically linked to religious imagery – ‘bells’, ‘orisons’, ‘prayers’ and ‘choirs’. In line 8 things switch from the fighting to Britain’s ‘sad shires’ where loved ones mourn, changing the tone to rueful contemplation from bitter passion. ‘And bugles calling for them from sad shires’(8) the Bugler’s ‘last post’ was traditionally interpreted as a strain of farewell at a serviceman’s funeral, whereas here Owen hears it as an unanswerable call to return to the alliterated ‘sad shires’. Owen being from Shropshire, thought of the typical Englishman as a ‘Shropshire Lad’ and the traditional, united country life where each individual was know as part of the community, his loss would be grieved by all. Owen carefully sets the chaos of the trenches against the subdued atmosphere of church. Phrases like ‘passing-bells’ (1) and ‘holy-glimmers’ (11) and ‘voice of mourning’ (6) symbolise the sanctity of life – and death – whilst suggesting also the inadequacy, the futility, even meaninglessness of organised religion against the cataclysm of war. Once again in lines 9 – 14 religious images and illusions are dominant. The ‘candles’ in the ‘hands of boys’ and the ‘pallor of girls’ brows shall be their pall’ suggesting that these things are meaningless, you just need to look into their eyes and the pale faces of the women left behind to learn the truth about war, their silent minds stand as the most fitting tribute to the sacrifices made. Owens poem begins to envisage the chaos of war as an unending condition of modern existence with every individual bearing somewhere its scars. The constant reference to religious imagery seems symbolic, representations of the spiritual, which he sees as a ‘mockery’(5), just as in his eyes, ‘candles’, ‘flowers’ and the ‘drawing down of blinds’(14) are no more gestures in a public mourning which bears no resemblance to individual experience. This moving image of closure brings the sonnet to a quiet close. The ‘drawing-down of blinds’(14) is linked to the English tradition of closing curtains or drawing down blinds in a house of mourning. As ‘Anthem for Doomed Youth’ ends with the sun at dusk, the end of a day and a representation of the end of many lives, ‘Futility’ begins with the sun at dawn, the beginning of the day yet still the end of a life. Shortly after writing the poem ‘Futility’, Owen categorised his poems, placing this one under the heading of grief. Although Owen appeared to know the dead soldier written about, the anonymity allows it to be universal; it could be describing any soldier as he ponders nature’s power to create life, setting it against the futility of extinction. It takes the form of a short elegiac lyric where he uses the sun as a metaphorical framework. ‘Move him into the sun’(1), the poem begins with an instruction which seems a gentle command especially as many of the words throughout the first stanza reinforce this softness of emotion, ‘gently’(2), ‘whispering’ (3) and ‘kind’ (7). The sun is personified ‘gently its touch’(2), ‘whispering’ just as he uses personification in ‘Anthem for Doomed Youth’ to give a powerful images to demonstrate the lives that are ruined through war. Once again in this poem, along with ‘Anthem for Doomed Youth’, he refers to how young the soldiers were that died, ‘fields half sown’(3), a metaphor for lives not fully lived yet, they had not had time to experience life before they died at war. War for Owen was senseless, for so many men to lose their lives, especially at a young age, made him question the purpose of our existence. He was convinced that many of the people, who remained in England and hadn’t experienced the warfare, didn’t understand how the soldiers were suffering and therefore couldn’t express true sympathy. He felt by writing ‘Futility’ he would be able to portray the worthlessness of war, the uselessness of human life and arouse pity and grief in those who read it. (Mahmud 2008) The dead soldier in ‘Futility’ is not given a name perhaps to represent every soldier who was killed in the war. C. W. Gillam (1965) states that ‘the sight of the dead soldier makes the writer wonder why creation ever happened if it was to end only in such futility’. The persona wonders if we were created for this, and if this is the case, then our existence seems meaningless. Consequently, the experience of loss is universalised, the reader imagines this soldier to be a potential close relative or any human who is caught up in a chaotic world. The ‘O’ indicates the bitterness of this discovery, the poem produced an initial emotion of hope, but ends with the feeling of hopelessness. The contrast between the peacefulness of the first stanza against the grief and anger of the second makes this a poem that conveys its message of the meaningless of life and a protest against the wisdom of creating people only to have them die in such horrific circumstances. The First World War had a drastic effect on the poetry of many poets of the twentieth century. Poets like Siegfried Sassoon and Wilfred Owen, as well as many others gave us their firsthand experience of war and described the fatal effects whether physical or mental upon those who participated and those left behind. Many of the poets suffered from psychological problems during and after the war due to shell shock and the horrible mutilation they witnessed on the battlefield. Some of the poetry can help us understand the sense of grief and anger at the pointlessness of war and the anger at the sheer numbers of soldiers sent to battle to be massacred like ‘cattle’. Early on the morning of 4th November 1918 Wilfred Owen was killed by enemy fire. When the telegram arrived to inform his parents of his death the local church bells could be heard, ironically linking him to his own poetry ‘passing-bells for these who die’ even though the bells were in celebration of the Armistice. Owens’s poetry is not for everyone as it combines graphic descriptions of war and the reality for those involved on the front line. He is generally acknowledged as being both the most successful, and best, poet of wars reality. The reason why may be found in the preface to his poetry, of which a drafted fragment was found after Owens death: Yet these elegies are not to this generation, this is in no sense consolatory. They may be to the next. All a poet can do today is to warn. That is why the true Poets must be truthful.

Importance Of Vision And Mission Business Essay

Importance Of Vision And Mission Business Essay Organizational culture is an essential aspect to a company that can influence the strategy of the organization. Organizational culture can define as one organization share their own traditions, values, policies and attitudes during their daily operation (Luthoms 2002 ) Organizational culture is a basement of company strategy. Company can achieve their business goal very easily if they put organizational culture into their business vision and mission; make sure the culture can match with company strategy, in this way company culture can push their business keep going.. Each of organization has their unique culture which the company can benefit from it. The culture can give a large effect to employees, even the companys customers. As long as staffs know about the culture of company, they know the core business of the organizational hence the strategies they make will surround the organizational culture and that will not deviate their organizational goal. On the other hand, a clear and strong organizational culture cans attract customers attention that will let them know the business goal of company and they feel the organization is formal and official(Robbins.PJudge.A 2010).Strategy can be defined as Match Companys internal resource with opportunity to create an external factor (David.R. 2007) Sometimes companies have to choose one of strategy form many of them. Before they do that, do strategy analysis is necessary, strategy can be changed, but organizational culture can not be replaced. Let see some detail regarding how organizational culture influence company strategy with relevant example. Importance of vision and mission Most of successful companies are match their organizational culture with business visions. They try to create a positive relationship between organizational culture and organizational performance to ensure employees can work effectively and customers can fully understand what the organization is about. Business vision and mission should answer two basic questions:what do we want to become? and what do we want to do in long-term?(Huczynski.A Bunchan.A 2007) that is looks like a guideline to encourage employees moving forward ,a good vision can affect bother side, internal and external there is also a goal in their mind which can encourage staffs work in a positive way. Business vision and mission can make organization become stable. Organization should make their business vision and mission with organizational culture clear enough, not only for motivate employees, but for their business partners and customers as well. There are two examples show how vision and mission support company to do business. 1. Durex Company A good example is Durex Company. When we mention the brand Durex the first item comes out is condom and most of people will feel embarrassed. Employees can not advertise their products easily if they feel like that and their business can not become successful. However, the organizational culture they create can balance this negative effect. The culture is Successful; Social responsible and Lively (SSL) which means Durex Company will do a successful business, to fulfill social responsibility and make the life become great. The wonderful part is Social responsible. On the employees side, the organizational culture try to tell them the company you work for is not a simple manufactory to produce condoms, the brand Durex can represent a social healthcare organization. They put the social responsible into their business mission and vision; besides produce their products another companys mission which is more significant, to publicize health sexual behavior to their customer, especially you ng generation and teach them how to prevent the disease by use condoms .Employees who work for Durex is not just a seller or producer, they are people who provide knowledge of health as well. Such as, what is healthy sexual behavior and how important to prevent HIV in our life In this way employees will feel proud and confident during the daily operation. Because Durex Company has a positive organization culture and they can match it very well with their business vision and mission most of countries government are support them when Durex extend their market and do marketing research that why the brand can become famous and has a good reputation all over the world. Durex is a healthcare company and fulfills society responsible, not just a producer and they are one of successful international company in the world, their product has been proved by World Health Organization (WHO) that all benefit form they have a clear vision and mission and transfer an obscure topic become acceptable. 2. Dell Company It is not enough only ask employees understand the business mission and vision; actually organizational culture can support the company from side, employees side and customer side. Make sure employees understand is the first step, as long as employees know about the organizational culture, they can explain to their customers very easily and the decision they make will around the core business of company that is good for company to advertise themselves. (Clegg Kornberger 2006).For instance employees who work in Dell Company can demonstrate their organizational culture to public very well. As we know Dell Company is one of famous computer organization that has been included in the 500 largest companies in the world. The brand, DELL is quite welcome because of they have a good business mission and vision which is Listen, Learn and Deliver, means listen feedback from their customer, keep learning new technique to improve quality of products and deliver their service to customer. Actually , Dells organizational culture is more likely a customer service strategy to build a long-term relationship with customers. And win customer loyally Base on the Dell Companys culture, after customer purchase computers from internet or book by telephone, they will deliver the goods to their home, and we know none of company like did that for their customer, expect Dell. When employees deliver products to customers home, they can performance their organizational culture to them, such as help customer to check is that what the customer need in the box? After that, help customer to check the computer is working or not. If everything is correct, ask customer to sign on the feedback form. Finally, employees will announce to customer if they need technique support they can call customer service number in Dell Company and they will come to you within 3 working days. Because of employees are fully understand the organizational culture and they can show it to customer by good service quality that why the brand Dell can get customer loyalty. Dell Company use employees as media to transfer their organizational culture to public and customers are truly believe they can do a good job. We can see a concrete example which is customer will pay the full price first on internet when they buy Dell computer, after that customer will wait about 5 working days for deliver product to their home. Customers are willing to pay first, and wait company come back to them; this kind of customer behavior which can explain their customer service strategy is successful, because of Dell follows their business mission and vision. Until now, there is no customer complain regarding deliver product delay. Personality, Durex Company and Dell Company are very good example to match organizational culture with business vision and mission and bring a positive effect to internal and external. Strong and weak organizational culture Create a strong organizational equal to build a stable basement for company. Employees have the same option about core business of organization and a strong organizational culture will affect members behavior. (Hellriegel 2009 )It is looks like behavior control, make sure staffs performance on the same level..Strong organizational can reduce employee turnover rate as well that can create a kind of internal organizational climate which can attract employees work for company(Schein.H 2010) that can support company carry out recruitment strategy. The  recruitment strategy  is a complete mix of the recruitment processes, targets and approach to hire the best talents employees for the job market and control turnover rate.  Organization can save cost and time if they have a low turnover rate. Employees leave organization for many different reasons that why company have to use culture to unite them as a team. However Strong organizational culture is not means management level use inte rnal culture to force their members that is not the purpose. The correct way is that make sure employees understand the organizational culture, each of them can transfer the culture to their own understanding. Company need to use organizational culture to persuade members, not force (Hellriegel 2009 ) After staffs understand it, they will follow by themselves. As long as employees can find their expectation in the company they will stay here for a long time. On the other hand, week organizational culture means the internal culture is not clear or lack of explanations and staff control, employees will lose business goal and guideline, in this way, perhaps members will leave the organization that should be improved if company wants to reduce turnover rate. After employee leave, they have to spend more money to organize an interview to hire new employees to replace employees who just leave. Otherwise, company need to provide formal training selection for new staffs and the most signifi cant point is new employees need some time to know about the new working environment and they can not cooperate with their colleague that will make the daily operation become ineffective. The following paragraph will demonstrate a relevant example to support how important to build a strong organizational culture to control turnover rate. Resort world sentosa Singapore Resort world sentosa(RWS) Singapore is a good example to explain how strong organizational culture to help company become successful. RWS is a large resort which provides service and entertainment and there is more than 2000 staffs work for them. It is hard to do a successful business if RWS does not have a strong organizational culture. Let image, they have such a large group of employees, if organizational culture is not strong enough that will lead to employees are not loyal to the organization, turnover will increase and employees performance will float up and down. First of all, let see what the culture of RWS is. They call is as RWS fun which means Responsible, Warm, Supersize and Fun. The organizational culture try to encourage employees become a responsible person in the daily life, when staffs deliver service to guests, try to let customer feel warm and welcome, and remember to supersize their guests, let them feel something different or special. Lastly, create fun to your c olleagues and customers; let everyone enjoy themselves in Resort world sentosa, no matter your staffs or guests. Actually, the culture, RWS fun gives employees what they expect, everyday staff come to Resort World not only for work, create fun as well. The organization culture make Resort World become a large family and all of members have been united by a same belief. The company prints the organizational culture behind the staff card that can make sure each of members can remember it. RWS fun creates a positive working attitude to each of employees that will persuade staffs stay here. The organizational culture plays a good role in recruitment strategy, as a large company, they can not only focus on hire staffs from outside, get current employees loyalty is equally important. Let us image, Resort World has 2000 employees, the organization will lack of cooperation if employees are keeping resign and the whole organization will become unstable and their business can not moving forwa rd. Organizational culture and strategy in action Organizational culture affects strategy development in many ways, company have to base on their companys culture to plan a long-term or short-term strategy. On the other hand, a good organizational culture has to support companys future plan as well. Company need to connect internal culture with strategy Organizational culture and strategy they have a supportive relationship. Organizational culture is the key of company make a strategy Company carry out a strategy have to show to public their particular internal culture, which means use their own method to achieve their organizational goal. The strategy is a kind of reaction of organizational culture. Before a strategy takes action that should be realities, make sure that can be accepted by customers or business partners and manage the cost, increase revenue as well. On the other hand, management level need to forecast barriers between company and their goal, provide some idea to prevent it. The following paragraph will shows how the organizational culture of KFC to influence their strategy in action Kentucky Fried Chicken (KFC) Let use KFC as a example to explain how organizational culture influence strategy in action.KFC is one of successful fast-food restaurant and famous all over the world. Normally, KFC only provide fries chicken with chips to customers, however what they did in China really help them to occupy market in this country. Nowadays, KFC try to do some innovation about their food. They offer congee, rice and some Chinese traditional food to match with the local culture and you can not find this kind of food in KFC where local in the other countries. KFC is first restaurant to do this kind of innovation they take the opportunity to attract customer to come. Otherwise, KFC also deliver mock chicken and vegetarian burger in India and Canada, there are some people are vegetarian, because of religion, this kind of food innovation can be accepted very easily. After the innovation, KFC become more competitive. As we know, a strong competitor of KFC is McDonalds which deliver fast-food as well, both of them are international brand, however, the action about food innovation is base on the KFCs organizational culture which is Positive encouraging Restaurant manager first and Work to excellent. In fact, it is not difficult to find out the food innovation is kind of positive encourage which make KFC become more competitive than McDonald in the market. Because of the one of organizational culture in KFC is encourage employees do a positive change, hence the strategy they did in China and India is quite creative. Employees transfers their organizational culture becomes a real strategy action and that is very successful, the new innovation is not cost too much, but bring in good revenue for KFC and their market become stable. On the other hand, because the innovation is successful that encourage KFC keep doing the food innovation, every quarter customer can find out new thing on their menu, most of them are very good food combination, customers are like them so much. The example can d emonstrate that organizational culture how organizational culture bring a positive effect to strategy in action Conclusion Every organization should build an organizational culture before business start, base on the culture to show their own feature and when the top management level wan to plan their future strategy for the company, the strategy they make have to match with organizational culture and direct go to the companys mission and vision.. Create a positive relationship between organizational culture and organizational performance to ensure employees can work effectively. Weak organizational culture is lack of control, sometimes that will confuse staffs as well, hence as a successful organization, internal culture should be clear and strong enough to unit all the employees in the organization, make sure members can explain the culture by their own understanding.( Alvesson.M 2002)On the other hand organizational culture need to be demonstrate to customer, let them know what the company is and what kind of business they running. On the other hand, strong organizational culture can decrease turnover rate and win employees loyalty which help company carry out recruitment strategy, low turnover rate can make the daily operation become effective that can prevent employees performance float up and down. Decision or strategy they make should follow the companys culture as well. Indentify the merit and demerit form internal and external; recognize the business stage of company, is that time to grow or defend. Organizational culture need to give a positive influence to strategy in action. The strategies they choose have to support company increase revenue and control cost. Internal culture and strategy have to match each other ,and when company carry out the strategy make sure the that can be accepted by local government politics.( Michael A. Hitt   R. Duane Ireland 2008)The organizational culture is the basement of organization, all the strategy has to around the culture. In this way, the organizational goal can be achieved in a successful way.