Essay On Hedging Student Finance Essay - Free Essay Example

Hedge funds have grown and deepen their roots in the recent years. At present trillions of dollars of assets are controlled by hedge funds. what happens in the hedge funds market in a matter of concern for every American. In the period of 1998-2008 the amount of hedge funds has increased dramatically. A firm in Chicago said the funds exploded from $374 billions to almost $2 trillion in a hedge fund research. Flushing with money, hedge funds gained enormous air of mystery and soon became the hottest talk about thing on Wall Street. The financial distress gave rise to the increasing hedging practice. Because the markets have become so uncertain that every investor wants to have a safe net so that he doesnt lose out his money. Most of the studies carried out in hedge funds are based on two dimensions, the companies who hedge and the companies who dont. Not every company uses derivatives and not every company hedges and there are some who dont prefer disclosing the amount of hedging practice in papers available to the public. Of late empirical evidences have in a way supported the usage of currency borrowings to be a hedge management tool. What is Hedging? A hedge is a risk management strategy, an arbitrage situation to minimize the loss from fluctuations in the prices of commodities, currencies or securities. It can be said that hedging is like buying an insurance policy to transfer the risk. Moreover, hedging is like a bet in the gambling sense, where you put another bet in addition to minimize the risk of the unsettled bet. The daily nuance of this practice is to gain a protection against the possible unfavorable outcome. It normally takes into consideration equal and opposite situations in a market, such as cash and future markets as an example. In easier words, you will leave early to catch a train. Here, you are hedging a bet to board the train on time. Financial hedges are undertaken to reduce or eliminate the risk of a transaction already taken or an outstanding transaction to be on a safer side. What are the driving factors of hedging for both financial and non-financial firms? As we know, all the businesses these days have become international businesses. Hence, the fluctuations in currency are unavoidable. It affects the cash flow, profitability and asset /liabilities positions. All the firms are involved in import and export activities. And the major risk here arises is the currency exchange risk. A company might be earning in Dollars but will be paying for the costs in some other currency. These values change every day. They are highly volatile, escalating and declining dramatically. Hedge is normally related to financial firms like, traders, banks, investment institutions who are exposed to currency risk or speculative businesses. Practically, there is no way any business can be completely immune from the above mentioned risks. And as a risk management practice, the firms make provisions and hire professionals to carry out hedging so as to safeguard their investments. At present, the hedging market is a flippantly regulated group of investment vehicles of similar characteristics. Lately, non-financial firms too have started hedging owing to the fluctuations we just talked about. And in addition there are several benefits as mentioned below: Tax benefits Be it a small or a large firm in the countries where the tax structure is just the opposite to the concave tax structure, then these firms can decrease the tax liability by hedging. Smith and Stulz(1985) showed that the volatility is costly for firms with convex effective tax functions. Like in Canada, they have a statutory progressive tax structure for individuals and to limited corporate firms. Lets take an example, if a firm is expecting a loss of $200000 or earn $200000 and tax rate being 30%. Thus, the firm will have to pay $30000 as taxes even though the expected income is zero, without hedging. Here, we have ignored the tax code like the ability to carry forward losses which reduces the tax convexity and provides with a tax incentive to hedge. It has been found in previous studies; the greater the convexity the greater will be the tax benefits. And the tax function is convex when the marginal rate increases. Graham and smith (1999) have said that existing NOLs(net operating lo ss) provide a disincentive to hedge firms expecting a loss but will offer incentive to hedge for profit expecting firms. Boosting debt capacity If we go through the theories of Stulz(1996) , Ross(1947) and Leland(1998) we get to know that by reducing the volatility of income and/or reducing the probability of financial distress, hedging increases debt capacity and which in return also provides to be a tax incentive to hedge. Leland(1998) in his presidential address to American Finance Association had made clear two things as quoted by him the principal gain comes from the fact that lower leverage volatility allows higher leverage with consequently higher tax benefits and a secondary hedging gain comes from lower expected default rates and distress costs, consequential from unused debt capacity. There have been arguments which suggested that tax shield from increased leverage is of more importance than reducing expected distress cost. Financial distress remedy Dolde(1995), Berkman Bradbury(1996), Haushsalter(1998), Gay and Nam(1999), Howton and perfect(1999) and Graham and Rogers(2002) use the debt ratio to measure expected costs of financial distress and found that higher hedging is observed with increasing debt ratios. Volatility will reduce the firm value if the financial distress is sumptuous. Most researches have suggested that the relation between greater expected financial cost give a rise to hedging which presumes that higher debt capacity faces higher financial distress. What hedging/leverage casualty can do is; hedging may increase debt capacity, but higher leverage can boost up the incentive to hedge. In empirical researches it has been found that the relation between costs of financial distress and hedging are positively correlated with the probability of a firm in financial distress will hedge. Due to the huge cost of bankruptcy, in inevitable for firms to hedge themselves against the huge risks they are exposed to which will lead to a lot of financial distress. Normally these risks are closely relevant to the firms fixed commitments and interest expenses. Agency problems When the decision to hedge is contractive, hedging helps in eliminating the agency problem by diminishing both the risk premium and the equilibrium amount of earnings management. Although hedging does not always solve the problem and instead allowing earnings management is preferable but it does help some firms. The main reason behind it being that if they change the structure of earnings management it might lead to inefficiency. So it has both the pros and cons. Although, with an increased hedge option, the principal may achieve efficiency by stringently forbidding the earnings management, since the cost to eliminate dead-weight loss from earnings management can be lowered significantly by hedging. Restricting shareholder and bondholder interest Shareholders bear the entire cost of investment and hence would expect the investments to be nurturing but the returns accrue towards the debt holders as well such as shareholders will be worse off. Bessembinder(1999) has once argued that as hedging reduces the profitability in situations of financial distress it proficiently moves individual future states from default to non default results. Hedging firm may promise to obligations in conditions where it wouldnt have been able to negotiate contracts with regards to lower borrowing costs otherwise. Inconsistency in investments will be unfavourable, to an extent of diminishing marginal returns to investment. In current asymmetries the cost of marginal funds will increase with increase in funds. And if they available funds run short, the need will met by borrowing from outside institutions and which will result into decreased investment. This will have a negative impact on the npv and the firm value as a whole. Here, the hedging techniq ue may come out as a good idea to manage the internal funds,provding a safe net on the fluctuations and the firm does not have to spend on borrowing from external sources and thus improve the firm value and the net present value. Thus, a firm with higher level of debts, will undertake a hedging programme, if their growth value is highly affected by the value of the firm. Improving managers wealth portfolio If the variability of their compensation is related to the volatility of corporate incomes and cash flows having a convex utility of function then, corporate volatility can be costly (stulz(1984). The Within the hedge fund industry it is the skill of the manager (alpha), rather than the performance of a market or asset class (beta), that should principally determine how well they perform. As quoted in a publishing by the National Association of Pension Funds Limited 2009. The infamous 2 and 20 formula of compensation has gained a lot of majority and appreciation in hedge funds currently in operation. It means that a hedge fund manager receives 2% of assets and 20% of profits each year out of the hedge funds operating agreement. In short, if they lose the money, at least a guarantee 2% return with negligible problems will be given. Hence, we can say that a manager earning 1 billion pound may take home 20 million pound by just investing the companys funds in the bank. Its very obvious that with such returns, the client may defect before long and is in the best interest of the fund manager to boost up his returns. Firms facing currency exchange risk As almost all the firms these days are engaged in import and exports. There is not just one currency they are dealing with. They might be producing their product in dollars or yen but the remuneration is in different currencies with different exchange rates which fluctuate every day. In such a scenario, its very difficult to maintain the cash flows and the investments and the accounting of the same. Any company wouldnt like to risk their funds and profits to an uncertain market. So they buy forieng currency derivatives and hedge them. So that they dont lose out their profits. It is practically unavoidable for any international firm to not hedge. There are different risks which come as a package with currency exchange risk. The firm is operating in a different currency country, exporting in a different currency, outsourcing the managerial work to another country. The whole world has become a market but the currency is not universal. The financial firms deal with different currencies. They deal in commercial papers, loans, borrowings, equity, bonds etc. So they are ought to hedge no matter what as a risk management practice. But the firms who in a way have the same need to hedge like these firms also jump into the world of hedge funds. The cost of hedging is no less. But the cost is comparatively less than the risk exposure. Hedging is a necessity of small and medium firms, big companies have a bigger risk appetite. They will be able to raise funds and reinvest and recover their losses which is not the case with small firms. Hedging has other benefits too like they make the financial statements and more detailed and revealing to the investors and stakeholders which might improve the firms value in the market. Any investor would prefer a company who is making provisions for future uncertainties and not just presuming things to go their way when it comes to exchange rate. If a firm is ready to face their risks by taking prior precautions then it can concentrate on its main aim of profit earning and growth. In 1999, Mian studied the annual reports of 3002 companies in 1992 and found that 771 companies did some risk hedging in the course in that year. And out of these 543 firms disclosed their hedging activities in the financial statements and 228 mentioned the use of hedging as a risk management strategy but didnt disclose the details about the extent of hedging. Larger firms were hedging more as compared to smaller firms, because it was relevantly less costlier due to the economies of scale. In 1996, Tufano made several interesting observations: Almost 85% of the industries hedged gold price risk between 1990-1993. UK firms have a better incentive than the US counterparts ? US firms basically hedge currency exchange risk and commodity risk more than any other risk. George soros rose to fame and fortune when the British pound was going through a rough phase. Hedge fund managers are now looking for ways to earn out of the financial distress in the European countries. it is unlikely in Europe, because the way Europe works is incremental crisis, incremental recovery, London-based Robert Marquardt, founder of funds of hedge funds Signet said. The Euro went down to 3.3% percent against the US dollar this year. Brynjolfsson and several other US money managers trying to expect a gain from European crisis say that expect a lot of winners out of Europes misery. Seeing the rise in the global transactions secondary transactions which was expected reach an aggregated value between 25 euro billion to 30 euro billion, was true. As compared to 20 million euros in 2010 and 25 euros in 2011 it seems Europe will continue to host the bulk of secondary transactions. The pro minent Uk and French markets have continued to fuelled in by the Banks and Insurance companies, whereas public pension funds represent the largest category of sellers in US, says Nicolas Lanel, managin director and head of European secondary market advisory at UBS. Marleen Groen, CEO and founder of Greenpark Capital, agreed: Many pension funds are also waiting for further clarity on the implications of the occupational pension funds directive upon their private equity holding. She adds that funds fear renewed recessions in some European countries. The dominance of the EU in the management of speculative funds is seen to be irresistible. although the dominance will have to be put into a viewpoint: British represent $212 bn compared with a total of $1000 bn for funds locared in the US making the London hedge fund market no more than a Trojan horse for the US hedge funds.

The Electoral Collegers Structure - Free Essay Example

Sample details Pages: 4 Words: 1107 Downloads: 4 Date added: 2019/05/23 Category Politics Essay Level High school Tags: Electoral College Essay Did you like this example? The Electoral College is a medium established by the founding fathers between the United States Congress and the people in order to agree on a new president. It replaced direct ballots in order to prevent a tyrant. The process involves five hundred thirty eight electors, which consist of two senators for each state and one person for each member in the House of Representatives. Don’t waste time! Our writers will create an original "The Electoral Collegers Structure" essay for you Create order Together, these people decide the next American president by majority vote. This essay will examine the Electoral Collegers structure as well as itrs rationale and impact on the government and its citizens throughout the development of the nation. The foundations of the Electoral College lie within the idea of preventing tyranny a concept that America has strived to keep out of the government, as seen through its history with Britain. Another concern of the founding fathers is that the citizens wouldnt be involved or informed enough to make the appropriate decision. Although only qualified citizens are allowed to vote, the average American does not have the same experience as a senator or representative of the House would have. For these reasons, the Founding Fathers made the executive decision to give the States the authority to appoint educated and experienced electors to vote on behalf of citizens that share their views. The concept of an Electoral College was opposed by an anonymous source in Federalist Paper No. 72, and was famously argued for by Alexander Hamilton in the Federalist Paper No. 68. The founding fathers were afraid, not only of tyranny, but of the extremes of democracy. James Madison was worried about what he coined factions, which are populations of people with common interests which might potentially harm others, or even the nation. As a solution, Madison proposed a republic and integrated representation within the government. The function of the Electoral College is to preserve the essence of the American citizens, while ensuring that a president is chosen by men most capable of analyzing the qualities adapted to the station, and acting under circumstances favorable to deliberation, and to a judicious combination of all the reasons and inducements which were proper to govern their choice. (Miller) Although this was the original intention in creating the Electoral College, today, this process is a formality at most due to the loyalties of most electors and those bound to vote according to the popular vote, decided by the people. President Trump, a modern day f igure, says that the Electoral College is different and that he prefers the popular vote because itrs much easier to win the popular vote. Purpose A concern in utilizing the process of the Electoral College is the fear of losing the essence of the popular vote. This has happened four times throughout American history, and most recently in the Election of 2000 when Al Gore lost despite having 48.4% of the popular vote, opposed to 47.9% for George W. Bush. Statistics show that this was about a 500,00 vote margin. There was also a struggle over the count in Florida that reached the Supreme Court. Ultimately, Bush was declared the winner with 271 votes through the Electoral College one more than the minimum to declare a majority vote. The Electoral College process begins with the people, who vote for presidential electors by popular vote. These electors are then sent by each state to the United States capital to directly vote for the presidential candidates themselves on the first Monday after the second Wednesday of December. In general, the winner of the each staters popular vote receives all of the votes in the Electoral College and each state is assigned two Senate seats in addition to its reserved seats in the House of Representatives. Due to the popularity and distribution of support required to become elected as president, the Electoral College does contribute to the unity of the country.Some believe that this distribution should carry more weight than just the popular vote due to saturation in any one state or area. The process also enhances the interests of minorities and special interest groups in the government since it allows them to make an impact on decisions being made. Minorities have more potential to impact they state they reside in, in comparison with the entire country. This in turn protects these groups and creates a leverage effect, forcing the presidency to give more consideration to these populations due to their impact. Aside from that, the Electoral College supports the political stability of the United States through its preservation of a two-part system, and thus defending a federal system of government and representation for the people. Despite the advantages, the fault in the Electoral College arose from its foundation, which demonstrated a distrust in the people, and is therefore essentially against the democracy. Because of this lack of trust, even qualified American citizens are kept from having a direct say in their nationrs leader, and will potentially lead to a president that the majority doesnt support. Aside from this issue, presidential candidates have always been encouraged to concentrate their campaigns and keep their time and resources saturated in a handful of battleground states. Generally, all of these states are more heavily populated states where neither party has an overwhelming advantage. This means that some mega-states, such as California, Texas, and New York, are largely neglected due to their predetermined support for a certain party. States such as Florida, Pennsylvania, and Ohio are typically more exposed to running candidates and their surrogates compared to the rest of the country combine d. Due to political insight, smaller states that have electoral votes in the single digits are often left off campaign itineraries altogether, despite the fact that each citizenrs vote is supposed to have the same worth. Some candidates feel as if these states barely have any impact and are a waste of time and resources. The Presidential Election of 1860 is a good representation of the difference between the Electoral College and the popular vote. During this election, John C. Breckinridge was the candidate representing the Southern Democratic party and Stephen A. Douglas was the Democratic representative. With votes concerning just these two, the popular vote favored Douglas with 1,380,202 votes against Breckinridge, who only had 847,953. Despite public opinion, Breckinridge ultimately had the upper hand because of his domination through the Electoral College. Breckinridge received 72 electoral votes, which trumps over the 12 electoral votes Douglas received. Aside from that, Abraham Lincoln was able to win against both of them, due to the controversy and split opinions on the topic of slavery. The Electoral College was split into those that supported slavery and those that didnt and Lincoln ultimately acquired more votes than both of the Democratic candidates.

Psychological Analysis Of Michael Henchard s The Mayor...

A psychological analysis of Michael Henchard, the protagonist of Thomas Hardy’s novel, The Mayor of Casterbridge, determines that Henchard suffers from numerous forms of distress. This analysis allows me to agree with Jeff’s statement that Henchard is the most psychologically complex character in the novel. The character’s complexity is discerned through his unstable judgments, beliefs and actions which will be considered and dissected in this essay. Henchard’s ambiguity makes it difficult to place him in one specific category of psychological distress. In this essay, I shall examine Michael Henchard’s character to argue that he fits the description of having Borderline Personality Disorder. Jeff stated in class that Henchard’s consideration and loyalty to his vow increases the reader’s respect for him. Although there may be some truth to Jeff’s statement, I would suggest that the recognition of Henchard as someone who suffers from uncontrollable distress has more of an impact on the reader’s attitude towards him. In order to analyze Henchard’s character, I must first qualify my statements by saying that there is no single disorder that encapsulates Henchard’s distress. Also, it is not a given that a person suffering from a particular disorder will have all the symptoms. With that being said, the assertion of this essay is that Henchard suffers from Borderline Personality Disorder. Henchard meets the diagnostic criteria for this disorder because the traits he displays are

Career And Interest Self Assessment Results - 935 Words

Self Assessment I. Career and Interest Self-assessment Results This self-assessment test was something that narrowed down possible interest and helped the participants open their mind to new careers. In-fact when I finished my test I was able to view the different careers that feel in my interest category. Taking a survey and calculating the different likes each field had accumulated determined my test outcome. After gathering the likes that had accumulated I was able to determine which inventory category was strongest. My top inventory was conventional which states, I am one who likes to follow set rules and procedures, and prefers detail and clear lines of authority (Self-Assessment, n.d.). My second strongest inventory category was Social, which states, I like work activities that promote learning and development (Self-Assessment, n.d.). Not only did I learn what my strongest inventory was I also had the ability to learn which jobs fell under those categories. Out of each category within the level 5-education requirement, I had one job that s tood out over the others; category one conventional had Math Professor. This job is something that would be interesting, but I am not sure if I would want this job as a career. The social category had one job that also caught my eye, health educator. After all the research and looking at each one of the categories and the possible job opportunities I have come to the realization that the test are estimates. I personally do not thinkShow MoreRelatedCareer And Interest Self Assessment Results952 Words   |  4 PagesI. Career and Interest Self-assessment Results This self-assessment test was something that narrowed down possible interest and helped the participants open their mind to new careers. In-fact when I finished my test I was able to view the different careers that feel in my interest category. Taking a survey and calculating the different likes each field had accumulated determined my test outcome. 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Kylinn Boyer #4. Octa 242 Productive Aging . Instructor

Kylinn Boyer #4 OCTA 242 Productive Aging Instructor: Witsken 2 March 2017 Smoking Cessation and Elder Wellness General Overview of Topic As we age, it affects overall functioning and our organ systems. By smoking cigarettes, elders can increase their risk for getting a life threatening disease or progressing one they may already have. It is important for elders to stop smoking cigarettes and focus on their overall health. Elders can achieve smoking cessation by receiving occupational therapy services promote healthy habits, recognize triggers, and balance daily occupations properly. According to The American Heart Association, older adults were smoking cigarettes long before there was any extensive research on the effects of†¦show more content†¦Older adults tend to have more surgeries. Therefore, quitting smoking prior to surgery would be beneficial because smokers have a more difficult time recovering. Overall, individuals who smoke cigarettes are 2 to 3 times more likely to develop cataracts, which is the number one cause of blindness in the United States and world wide. For older women, after menopause the bones become weak. Smoking in addition to having weaker or less dense will progress and worsen the process. Therefore, it is easier to break weak and brittle bones, making an increased risk for hip fractures. For older men, intimacy may be affected by smoking (Polito, J. R., 2015). There are approximately 4,000-7,000 chemicals in cigarette smoke. Chemicals included are: nicotine, tar, carbon monoxide, formaldehyde, ammonia, hydrogen cyanide, arsenic, acetone, benzene, butane, Cadmium and DDT. The chemicals previously listed are typically found within nail polish remover, hair dye, rat poison, rubber cement, active ingredients in battery acid, embalming fluid, and materials for paving roads. Forty-three of the chemicals within a cigarette are known cancer-causing compounds, and over 400 other toxins. In addition, depending on the type of cigarette that is smoked, the effects could be even more harmful to one’s body by containing more additives and chemicals than others (Kleinman, L., M.D., D. M., M.P.H., 2016). Promoting Wellness in Elders â€Å"Cigarette smoke damages the cells lining the

Top Source Countries of Tourists †Free Samples to Students

Question: Discuss about the Top Source Countries of Tourists. Answer: Introduction Kuala Lumpur was established in 1880 to replace the state capital, Selangor so that residents and businesses could be safe from calamities such as floods and diseases following the occurrence of such events in a mining center. Kuala Lumpur was curved out from the Selangor State, however, in 1974, Kuala Lumpur got separated completely and given to Malaysia. Kuala Lumpur has a rich culture based on the national heritage(DBKL, 2018). This kind of tourism fascinates travelers who are interested in this kind of tourism. Kuala Lumpur is also famous for its traditional and modern cures using herbs. The country also takes pride in having some of the best doctors and medical facilities in the world encouraging people from other parts of the world to visit Malaysia for medication. Kuala Lumpur has many places designated for shopping purposes with items such as artifacts, Malaysian clothing, and fashion all portraying Malaysia diversity and culture. Malaysia has experienced a boom in the hotel industry over the past few decades, with more and more global companies staking claims, in particular, Kuala Lumpur(Smarter travel, 2016). The Accor hotel dominates the industry and has brands in multiple price ranges with Pullman and Ibis included. The InterContinental represents the IHG group while Sheraton and Marriott also have a presence in Malaysia. A one-star hotel provides a room without air conditioning, and people share a bathroom. Two stars have air conditioning and Wi-Fi, but still, chances of sharing a bathroom are high. Three stars, on the other hand, have a TV, a phone, and other special amenities. The four-star hotel, on the other hand, is spacious enough with more amenities and services. Five-star hotels, on the other hand, are exceptional as they have 24-hour room service, unique facilities such as spa and perks that include limo services. The range here is overwhelming as one can choose from the old colonial hotels to boutique mansions in places such as George Town and Melaka(Smarter travel, 2016). There are also shophouses which are ancient buildings that have storefronts on the ground floor and family quarters upstairs. People that are more independent or like spending a lot of time in one place are favored by a vacation rental. TripAdvisor and VRBO have listings that range from the basic rooms to condos and beach villas(Smarter travel, 2016). iBilik a Malaysian listing agent has a database of apartments and rentals on short-term. The terms guesthouse and homestay are used interchangeably in Malaysia, so it is important that a tourist be specific in what is needed(Smarter travel, 2016). The Malaysian culture entails living in longhouses that can accommodate the entire village. Such structures are found in rural areas of Borneo specifically near rivers. Malaysia has accommodations that are affordable to the common man and such facilities range from dorms to hostels that are accredited by the Hosteling International a Malaysian agent(Smarter travel, 2016). Some hostels are located in some of the Malaysian national parks. The tourism sector in Malaysia has been ranked as the 6th largest contributor to the nations GDP and contributes a sum of RM 150 billion which is approximately about14.9% of the Gross Domestic Product as per 2014(The Star, 2017).As per the data that was released by Tourism Malaysia, the government had targeted close to 31.8 million tourists who were expected to generate revenue amounting to RM 118 billion(The Star, 2017). Tourism is considered as one of the key economic areas that will help the government achieve the vision of transitioning, Malaysia to become a high-income country by 2020.By 2020, Malaysia has projected to attract more than 36 million tourists and the expected revenues from tourism have been projected at RM168 billion(The Star, 2017). The MasterCard Global Cities Index published some of the most visited cities in the world, and Kuala Lumpur was ranked as the eighth in the list(Malaysia, 2017). This was great news for Malaysia as the country has worked to promote tourism numbers over the years. Kuala Lumpur received approximately 12.1 million international tourists in 2017. There were signs of recovery of the tourism industry in Malaysia in 2016 as the projected figures indicated that more tourist arrivals in Malaysia following a slowdown in 2014 and 2015.In 2016, the number of arrivals recorded was 25.7 million compared to 2015 indicating a 4% increase in growth of arrivals. Malaysia has been badly affected by publicity by the disappearance of Malaysian Airline Flight 370, and it was reported that there were 239 people on board. Singapore and Indonesia were the top two sources of tourists visiting Malaysia in 2016 recording 13 million and 3million respectively(Misachi, 2017). The ASEAN region has been attributed as the most significant contributor of the Malaysian tourism recording 76% of the total arrivals. Thailand recorded the highest growth from 1.3 million to 1.7 million arrivals in 2016 and represented an uptrend of 32.5% increase(Misachi, 2017). Other nations such as Brunei followed with 22.7 growth, Indonesia and Singapore recording 9.4% and 2.6% growth respectively(Misachi, 2017). On the other hand, the number of tourists that came from countries such as France, Vietnam, and India decreased. The boom experience in the tourism sector in Malaysia can be linked to the cheap air flights and availability of many flights as a result of the expansion of low-cost carriers in Malaysia. Malaysia is preferred as a tourist destination since the country has hundreds of tourist attractions and destinations all distributed across the country. The important attractions involve historical structural buildings such as Stadhuys and the Malacca Christ Church(Tourist Destination, 2017). Other famous destinations include museums, beaches, numerous national parks, towers, and resorts. Malaysia is also famous for being a shopping destination with many services to offer to the different kind of shoppers. Medical tourism is also popular in Malaysia as per the Malaysian healthcare travel agency; it was reported that there were more than 640,000 foreign patients in Malaysia. Kuala Lumpur is a historical and cultural city thriving as the capital city of Malaysia. Kuala Lumpur is listed as the top tourist destinations in Malaysia(The Tourist, 2018). Kuala Lumpur has several attractions that it should showcase for instance, the city has some of the highest buildings in the world such as the Petronas Twin Towers. Kuala Lumpur also has scenic and unique natural sites such as The Lake Gardens that is worth viewing. Conclusion Kuala Lumpur offers many tourist attractions and destinations worth visiting. The accommodation facilities are numerous and depend on an individuals pocket. The political stability of the country has boosted the tourism industry. References DBKL, 2018. Tourism. [Online] Available at: https://www.dbkl.gov.my/pskl2020/english/tourism/index.htm [Accessed 30 March 2018]. Malaysia, 2017. Kuala Lumpur No.8 Most Visited City In The World 2017. [Online] Available at: https://blog.malaysia-asia.my/2017/09/kuala-lumpur-no8-most-visited-city-in.html [Accessed 30 March 2018]. Misachi, J., 2017. Top Source Countries Of Tourists to Malaysia. [Online] Available at: https://www.worldatlas.com/articles/top-source-countries-of-tourists-to-malaysia.html [Accessed 30 March 2018]. Smarter travel, 2016. Where to Stay in Malaysia: Lodging Tips. [Online] Available at: https://www.smartertravel.com/2017/06/19/stay-malaysia-lodging-tips/ [Accessed 30 March June]. The Star, 2017. Tourism sector to remain third largest contributor to economy. [Online] Available at: https://www.thestar.com.my/business/business-news/2017/09/26/tourism-sector-to-remain-third-largest-contributor-to-economy/ [Accessed 30 March 2018]. The Tourist, 2018. 25 Best Things to Do in Kuala Lumpur. [Online] Available at: https://www.thecrazytourist.com/top-25-things-to-do-in-kuala-lumpur/ [Accessed 30 March 2018]. Tourist Destination, 2017. Kuala Lumpur, Malaysia. [Online] Available at: https://www.tourist-destinations.com/2011/12/kuala-lumpur-malaysia.html [Accessed 30 March 2018].

Labour Turnover and Business Sustainability

Question: Describe about the Labour Turnover and Business Sustainability? Answer: Sustainable plan for the business Sustainable plan for the business is quite important, as it helps the management in achieving the set target or objectives. High labour turnover is one of the concerns for the company. The management need to take corrective steps through which the labour turnover can be reduced. In order to retain the staffs, it is essential for retaining the employees. For this, the staffs needs to be motivated and encouraged to be performed at the workplace. There are different factors that causes high labour turnover, which can affect the production plan for the company. Thus, the management need to adopt and implement effective strategy that would help in minimising the turnover. Sustainable plans prepared by the management are usually on the long term basis and for this, it is essential to analyse the available resources in the right manner. Labour force forms an important part in executing the tasks that has been determined by the management. The challenge that exists at the workplace related t o the labour force is handled differently by various companies. In order to handle the issue in the right manner, it is essential to analyse the severity of the issue and draft the best policy through which the challenges can be overpowered (Colakoglu, 2009). Labour turnover and business sustainability High percentage of workforce turnover has a significant impact on the sustainable growth plan of the company. Smaller and controllable percentage of turnover is considered to be part of the business, and usually doesnt have a major impact on the business performance. Increase in the percentage of turnover increases the costs of operations. Management of the company has to incur expenses for recruiting and training new staffs for carrying out the operational activities at the workplace. Higher percentage of turnover of workforce impacts the sustainable plan and increases the challenges that are involved with the operational activities. As a part of the sustainable plan, the company work towards retaining the staffs and improve the production activities. The reason for the increase for the workforce turnover has to be analysed. This would help the management to draft effective policies through which the changes for retaining the staffs. Some of the reasons that causes high turnover is increase in the expectations of the staffs, better pay and work security. Constant turnover affects the performance of the company and delays the execution of the projects, which is important for the business. The time and efforts that needs to be spent for training the staffs is quite expensive. Thus, effective strategies need to be taken for retaining the staffs to carry the operational activities. Plans are implemented to achieve the objectives that have been drafted by the company. Thus, it is necessary to introduce strategies that would encourage the staffs to perform better (Dewettinck, and Buyens, 2006). PROCESS MAP 1 Evaluation of 4 evidences based on the professional business advisors The professional advisor framework has been defined and implemented for the successful performance of the company. In this case, the strategies need to be implemented for achieving the objectives of the company. Professional advisor frameworks can be used for the below mentioned factors Implementing changes in the production activities. Analyse the production process and monitor the stages. Staff performance evaluation Ethical analysis for the management (Dewettinck, and Buyens, 2006) The strategies are analysed, so as to implement the changes that would help in the business development. Labor and strategic management process, would help the company to implement the accurate changes that would help in developing the business. One of the familiar factors for the professional frameworks is associated with the staff performance evaluation. Through this process, the performance of the company is evaluated. The expected changes to retain the staffs can be planned and implemented by the management to increase the production process. The unfamiliar issue is associated with the analysis of the production activities and the evaluating the stages involved with the same. Production process changes and depends upon the challenges that are involved with the production activities. Critical analysis of 4 evidences Sustainable plans for the business is important, as this helps in improving the production activities. The factors associated with the high labour turnover have to be analysed, as this would help the management in drafting the best policy that would motivate the staffs. Laws and rules have been imposed to help the management and the staffs to adopt and implement the best steps through which the changes required for retaining the staffs for the company can be introduced (Sherwood, 2006). Plans for implementing the changes that are associated with improving the production activities Analyse the changes and its impact on the labour market and sustainable plan. Improving the production process Implement plans through which the changes can be introduced. Familiar issue is associated with the strategies adopted for implementing the changes Unfamiliar issues are related to identifying the areas where the changes needs to be implemented for improving the changes. Process Map 2 Summary learning In the case study, the performance of the staffs has been discussed. Performance of the team members have been impacted due to stress and less motivational factors. This has in fact affected the productivity for the company. Despite of taking the corrective steps, the team leader hasnt been able to encourage the staffs. Apart from the performance, the differences between different members of the group have been badly affected. This has impacted the work ability of the staffs or the team members. In order to solve this issue, the team leader needs to analyse the cause of the problem. At the time of analysing the problem, the leader needs to interact with the members and understand the factors that affect their performance. Based on the collected information, corrective steps can be implemented for improving the performance of the company. Better methods for relieving stress level of the staffs have to be sorted out through counselling. Through this method, the leader can interact with the employees or the team members. This would help in analysing the severity of the issue and implement corrective steps to introduce changes. For motivating the staffs, it is essential to improve the work culture. Through this process, the members can be provided with enough resources for improving the performance (Grant, 2008). Literature on sustainable plan The team members of the company can be encouraged to improve upon the performance. Team members can be encouraged to work better by handling the issues that is faced by the team. This would help in increasing the performance (Shalley Ch, Gilson L, and Blum T, 2009). Motivation can be external or an internal factor. In the internal factor the staffs are highly motivated and work towards improving the performance. External factors are associated with the rewards, promotion, and others. Through the model, the management can introduce effective steps that would help the staffs in improving the performance. The work culture needs to be improved as this will help in encouraging the staffs in improving the performance. Factors that could affect the performance of the members needs to be analysed and corrective measures can be introduced by the management. This has to be done after planning the changes that needs to be implemented by the company. The team leader needs to adopt and implement an effective and reliable communication process. Interaction and effective communication is necessary for handling different challenges between the members of the team. Team bonding needs to be increased as this will improve the production process for the company (Kochar, 2008). References Colakoglu S, 2009. Successful pursuit of a boundaryless career: career competencies perspective // Academy of Management Proceedings. P. 1-6. Dewettinck K, and Buyens D, 2006. Linking behavioral control to employee outcomes: testing two explanations using motivation theories // Academy of Management Proceedings. P. 16. Grant A, 2008. Does Intrinsic Motivation Fuel the Prosocial Fire Motivational Synergy in Predicting Persistence, Performance, and Productivity // Journal of Applied Psychology. Vol. 93, Issue 1. P. 4858. Kochar B, 2008. Job Satisfaction Among Academic // ICFAI Journal of Organizational Behavior. Vol. 7. Issue 4. P. 5560 Ros A, 2003. Do ESOPS motivate employees? Worker effort, monitoring and participation in employee-owned stock ownership plans // Advances in the Economic Analysis of Participatory Labor-Managed Firms. Vol. 7. P. 83-103. Shalley Ch, Gilson L, and Blum T, 2009. Interactive effects of growth need strength, work context, and job complexity on selfreported creative performance. // By: Academy of Management Journal. Vol. 52. Issue 3. P. 489505 Sherwood B, 2006. How to win over your employees and motivate them to perform // Metal Finishing. Vol. 104, Issue 3. P. 5253.