Effect of the Financial Crisis on House Prices

Effect of the Financial Crisis on House Prices Financial Crises. Analysis of House prises in London  and Almaty and how world financial crises  affected Kazakhstans economy. The subprime market crisis that hit the financial markets in the summer of 2007 caused a series of negative market reactions on a global scale. The tightly entwined nature of world financial markets represents a global loop whereby occurrences in one market have implications in and for others. This factor has been and will continue to be one that triggers international financial incidents, and in some cases they result in what are termed as a crisis. A crisis is defined as â€Å"†¦an unstable or crucial time or state of affairs in which a decisive change is impending; especially :one with the distinct possibility of a highly undesirable outcome†[1]. This describes the financial situation that forms the basis for this study, the subprime mortgage meltdown in the United States that hit the global stage in the Summer of 2007. In equating the ramifications of the preceding, two locales will serve as the focal point of the foregoing. London and Almaty are two examples that offer a distinct contrast in terms of where they sit in the global economic arena. London is located in the financial stable European Union, and is a city that has gone through differing economic turmoil in its long history. Almaty, is located in Kazakhstan, a new country that was borne out of the ashes of the break-up of the Soviet Union, and is seeking its economic identity through creating an infrastructure that is being crafted from the state run Soviet system that left few positives in its passing. The financial services sector is often a little understood arena owing to the complexities of how it operates within the context of international economic activity and the variables of the market economy. The intricate nature of the ties between differing regions, and how they interact upon one another represents a complex set of macro and micro economic aspects within which this crisis developed and impacted every corner of the globe. This study shall look into the manner in which this financial crisis affected the real estate markets in Almaty, Kazakhstan as well as London, England looking to uncover the why of this impact, along with the ramifications. 1.0 Introduction The tightly interlinked nature of the global economy has brought every corner of the globe closer together as a result of the advances in technology. This fact is also of course true for the financial services sector. In the later part of 2006 a financial issues began brewing in the United States as a result of lending activities in the home real estate sector. The underlying problems created from the lending of favourable interest rate loans that were put into motion by the Federal Reserve System in the United States to spur economic growth translated into a later meltdown as a result of defaults. The Secretary of the Treasury, Henry Paulson, Jr., stated that the situation â€Å"†¦ came about because of some bad lending practices[2]. Timing, circumstances, and other factors in the complex web of national economics that are tied to global economics can generate an unpredictable set of occurrences that can mushroom in almost any direction. Such is the situation that befell the subprime mortgage arena as it reeled from a cascading series of events than impacted global markets. So great were the ramifications that the situation still threatens the U.S. economy. Fears of a recession have been forecast as a possible outcome of the downturn this situation contributed to. The discussion of what transpired in the United States is integral to understanding the wave of events that represent the focus of this study. There are those who believe that the foundation for the crisis was laid in good economic principles, and it was the greed of some operators in the U.S. financial sector that abused the directive with what is termed as predatory lending practices[3]. There are others who fault funds and banking systems for helping to fuel the underpinnings that lead to the crisis, and still others who think that such market shake outs are the way in which the international financial sector finds ways to deal with loose bolts within th e system[4]. Alexander et al (2002) tell us that[5]: â€Å"Finding that some loans are more risky than others does not, by itself, imply a market inefficiency. Inefficiency exists only if loans with different risk receive similar interest rates. We document such an inefficiency†. The ramifications of the tightly wound international financial system is that while it provides opportunities to make money, it also magnifies the downsides and loses money. Gains always have their negatives, thus financial mishaps have and will continue to happen. In understanding the subprime financial crisis, a broad number of topic areas will be covered herein to draw a picture of the matter in which financial markets work in this instance. One key aspect of the foregoing is liquidity. McGee[6] tells us â€Å"The essence of a liquidity crisis is a flight from riskier assets to cash†. In understanding the many contributing factors, one has to be mindful that this situation originated in the United States, thus there are other considerations that also factor into the equation. Financial crises situations are nothing new; they are market occurrences that appear on an all too frequent basis. Chi and Gai[7] provide a perspective on this: â€Å"The spate of financial crises in emerging market economies as diverse as Brazil, Korea, Mexico, Russia, and Turkey, during the 1990s has focused attention on the importance of improving the policy framework for the management and prevention of crises. A distinctive feature of these modern crises has been the role of imbalances in the national balance sheet. Maturity, currency, and capital structure mismatches meant that the capital account took centre-stage, with large external financing gaps emerging as a result of unparalleled reversals of capital flows. Foreign investors wanted, and attempted, to withdraw from these countries at the same time, much like a run by depositors on a bank. Once sentiment soured sufficiently so that a critical mass of investors rushed to withdraw their claims, the crises became self-fulfilling as others found it rational to join the herd.† The preceding situation represents a different financial crisis, however it does provide us with some valuable insights that will guide us through the varied aspects that will be discussed herein. The important part of their statement is the fact that risk represents an underpinning in financial transactions, thus risk is a situation to be minimised. A sense of the complexity of this examination is provided by Langley[8] who states: â€Å"Any attempt to apprehend contemporary world finance encounters not only significant structural changes that cannot easily be captured, but also the predominance of neo-liberal political economy in framing our knowledge of world finance. Alternatives to the neo-liberal mode of knowledge of world finance are a necessary first step towards forestalling the worst eventualities of the current structural transformation. Neo-Liberalism represents a facet of this examination in that[9]: â€Å"The most powerful coalitions between state agents and economic actors are found in liberal political economies. The Soviet Union offered an alternative to capitalism that theoretically emphasized economic justice and material welfare, one that intertwined economic and political power even more closely together than elites are thought to be in liberal capitalist states. Even so, the power of the economic agents of the Soviet state was more structurally constrained than the power of capitalist states and their agents. In a global economy, the underpinning foundation is capital, and the movement of that capital to effect borrowing and lending, along with the financial instruments that accompany such action[10]. Capital movements have cycles that are marked by up turns and down turns based upon the activities within markets and the decision of the cogs (individuals) that run the machinery. The foundation, influence, reasons and reasoning behind those decisions represent paths that lead in differing directions which impact other course of actions that create cycles. This study shall follow these paths as they related to the subprime crisis. 2.0 Background As indicated, the financial crisis under examination originated in the United States, starting as far back as 2002. The ramifications of that event shall be covered in the Literature Review of this examination. In setting up the path of understanding for the journey through the twists and turns of the crisis, a foundational pillar of understanding is necessary in order to see the varied ramifications. Carrada-Bravo[11] advises â€Å"the process of creating value starts with the identification of a market need.† Today’s international financial system is an outgrowth of[12]: â€Å"The collapse of the Bretton Woods system of fixed exchange rates in the early 1970s marked the last major turning point in the evolution of global finance, ushering in the generalised non-system of exchange rate arrangements that survives today. However, at least as important in the development of international financial relations since then has been the enormous growth in the volume of international capital flows. In large part, this growth is attributable to the dismantling of the panoply of exchange controls introduced during the Bretton Woods era to facilitate exchange rate management by central banks under the auspices of the International Monetary Fund.† In understanding the dynamics of the circumstances that comprise the comparison of events in London and Almaty, Makin[13] provides us with an important capsulisation of the underpinnings that will be brought out herein: â€Å"The domestic financial markets of many economies have therefore been increasingly internationalised in the wake of liberalising policy initiatives implemented by governments around the world. Financial market liberalisation in many advanced economies was virtually complete by the late 1980s. With the removal of previously stringent regulations over domestic and international financial transactions, institutional barriers impeding the movement of financial capital between many regions of the world have now largely disappeared. Accompanying the domestic deregulatory changes were tighter prudential arrangements in advanced economies aimed at strengthening the capitalisation of banks and hence the stability of domestic financial systems. Such accompanying arrangements have been lacking in many emerging economies however and this has been a fundamental reason for recurrent financial crises in these economies†¦Ã¢â‚¬  The highly integrated nature of international financial markets as a result of globalisation has integrated national economies to the point that the world is virtually a seamless flow of capital. The foregoing, combined with the international liberalisation of world financial markets that arose out of Bretton Woods facilitated a dramatic increase in financial movements across borders that has been aided by advances in technology that have reduced transaction time, and lowering costs[14]. The increased efficiency of the preceding has helped to increase the pool of funds available for lending activities to all nations. Capital mobility is the underpinning for the preceding as fund availabilities can be quickly correlated. These advances have brought with them inherent problems, one of which is an important facet of the manner in which the subprime crisis impacted Almaty more than it did London. The following provides insight into an area that is an important point of understanding to b e remembered[15].: â€Å"International money market activity of this order and the lightning speed at which funds can now quit countries has also prompted many commentators to question its worth and, in light of heightened vulnerability to foreign investor sentiment, to emphasise its perceived dangers. In particular, strong objections to the ever-increasing trend of financial globalisation have been raised on the grounds that the governments of the economies most affected have ceded their economic sovereignty to international investors.† Thus, the actions of individuals within a market can start a feeding frenzy based upon the promise of available opportunities that seem to be available in the future to entice bankers into lending policies that incur the preceding. This is exactly what occurred in Almaty, as shall be explained in the Analysis. Given the aforementioned complexities involved in a discussion of this crisis. This background is being utilised to inject core issues that will be useful in understanding the circumstances and other areas to be explored. In finance, risk equates into a higher rate of return as fewer opportunities for borrowing are present. This has been a fundamental principle of lending since antiquity. High current account deficits along with rising foreign debt, means more risk, thus interest premiums must be charged. This makes the cost of money higher inside a country and acts as an inhibitor to borrowing. The preceding translates into the creditability of the borrower and the circumstances involved. Desai and Said[16] help us in understanding the relationships involved in international finance in term of how they apply to the countries in which London and Almaty are located in, which impacts the events that occurred: â€Å"Financial crises, from the perspective of territorial order, arise because of a loss of control by sovereign states over financial markets and financial flows. The problem is invariably seen as one of inadequate regulation, the failure of governments either individually, or in concert with others, to exert sufficient control over the international economy. Economic agents have created patterns of activity which have escaped the control of governments. The response to these problems is to find ways of restoring the control of each sovereign state over these activities by increasing regulation. This may involve enforcing existing powers, or creating new institutions, either intergovernmental or national in their scope.â€Å" In times of crisis, increased financial regulation is imposed either internally by the sovereign state, or externally by lending controls that make the cost of money more expressive, and thereby limits its use. This represents what Desai and Said[17] tell us is â€Å"cosmopolitan order† in global finance that:  ·Ã¢â‚¬ ¦ emphasises not state sovereignty but either market sovereignty or the sovereignty of capital accumulation. There are many different variants of the cosmopolitan conception of world order including neo-liberal, Marxist and Austrian strands but what all of them share is the assumption that the state and politics are subordinate to the way in which the economy is organised, whether this is the spontaneous market order of Hayek or the system of production relations of Marx. These structures determine how the society as a whole evolves and they supply its ordering principles. This means that states have to operate within fairly tight constraints, imposed by the way in which markets and accumulation work. They do not have much discretion in determining their responses. The growth of a global system of production and exchange, from the very first, tended to run ahead of states and national jurisdictions. It ended up undermining and circumscribing them. It has not destroyed them, but it has created powers, resources, networks and institutions which go far beyond them and which it is impossible for states to control without destroying the conditions for economic growth and prosperity and with them the fiscal basis for their own existence. World order is cosmopolitan rather than national in this sense. It is based not on states and intergovernmental co-operation, but on the logic of markets and capital accumulation.† The preceding is another important central aspect that is a part of this study, in that it applies to Almaty, and how the subprime meltdown ripple effect was handled to bring about a correction in Kazakhstan. 3.0 Methodology The approach to this study utilised a number of techniques to approach the examination of how the United States subprime mortgage crisis impacted Almaty and London. The complexity of the situation entailed looking at economic, statistical, historical, pre and post market factors, and other elements to equate the forces acting upon various markets in order to glean a picture of the what transpired. The following will set forth the various techniques used. 3.1 Research Philosophy and Approach Qualitative and quantitative research was used in this study as the combination of these two approaches led to a more comprehensive understanding of the forces acting upon the situation. The foregoing aided in equating key aspects of the study as represented by occurrences that transpired in the market, along with historical components. Secondary research that entailed books, journals, magazines and the Internet were used as the study entailed gathering past data and contemporary information in order to compile a picture of the situation and aspects associated with this investigation. As the range of the examination took in a broad array of financial, market components, it must be understood that in researching data it might have been possible that some information was either overlooked and or not available. The volumes of data on the study also rendered the possibility that some more important sources of information where not found that could have potential altered the findings, ana lysis, conclusions and or recommendations reached. In order to guard against such possibilities a number of differing sources were reviewed in order to form a more balanced assessment of the information. 3.2 Research Strategy One of the research methods utilised in this study represented what is termed as a cross-sectional study. The foregoing represents a method entailing observation of a number of items during the same point of time[18]. The preceding was utilised as opposed to a longitudinal study as the later represents observations occurring over a long period of time[19]. In conducting this study utilising the cross-section method, the foregoing entailed explorative, as well as descriptive and explanatory facets as it delved into the nuances of the industry, seeking to describe the contextual factors, along with the explanation of strategies, and tactics. The vast views of approach, and thought contained in understanding this study takes in a broad range of secondary research as this method provides exposure to a balanced view that is not skewed by what can occur in primary research. Secondary research allows us to be in touch with many different points of view, however, it can not always be relied upon as the researcher may have sourced the wrong materials in making the analysis, and or missed certain key points that were either not available, or unknown at the time the study was conducted. Secondary research represents the gathering of information from books, journals, articles, other research sources, and case examples. Secondary research represents a means to collect information regarding techniques and procedures, as well as strategies, rationales and the reasons behind courses of action, and or circumstances. Within this study, the literature search represented the main sources of information. It, the literature search, consisted of an examination of existing material, searching for information pertinent to the project. The means via which to approach the study of a project can take on many forms. Inductive and deductive research represent two techniques that can be brought together to understand the views of differing approaches to the area under examination[20]. The combining of research methodologies has been advised as a means to improve the quality of an examination, and it is possible to bring these different approaches to bear on one study, whereby there are advantages in so doing. Table 1– Comparison of Inductive and Deductive Research[21] Saunders’ (2006, p. 121) advises that the path of deductive research often is faster in terms of completion, as the data collection is usually based on what he terms as â€Å"†¦ one take†. Inductive research however, states Saunders (2006, p. 121) â€Å"†¦ can be much more protracted †¦Ã¢â‚¬  in that frequently the ideas are â€Å"†¦ based on a much longer period of data collection and analysis † all of which has to emerge gradually. 3.4 Research Questions In order to equate the answer or answers to the query entailing how the financial crisis impacted the real estate sectors in London and Almaty, the research questions entailed looking into an understanding of how economies work on a national as well as international level, along with financial market operation on a national and international level. 4.0 Literature Review Allen[22] in his book â€Å"Financial Crisis and Recession in the Global Economy† tells us of the fact that the â€Å"†¦rapid expansion and globalisation of financial markets shadows most other recent developments in international economics†. The foregoing is a critical component in the understanding of the recent U.S. sub prime mortgage crisis and its impact on global markets. Allen[23] advises that during the past twenty years, the international financial sector has changed and advanced in dramatic fashion, earmarked by the introduction and success of an entirely new currency, and change in the underpinnings of financial cohesiveness that impacts the countries of the European Union as well as the rest of the world. The Euro is the singular most noteworthy development in the rapid expansion of international finance that is marked by a host of important occurrences. He explains that new financial instrument such as derivatives, offshore banking, offshore financial markets, along with numerous other developments are at work in a global financial system that binds itself closer and closer by degrees each day Allen[24]. In his book, Allen[25] explains that the advances in information technology has directly impacted the growth and interlinkages in international finance as he states: â€Å"A financial transaction can loosely be defined as any business arrangement where money changes hands but the only other thing that changes hands is documentation. Both money and documentation are moved by information technologies; therefore financial market activity is enhanced by advances in those technologies. Expanding use and performance of electronic and regular mail service, telephones, computers, fax machines, image processing devices, communication satellites, fibre optics, the World Wide Web and so on creates better opportunities in finance† In illustrating the foregoing, Allen[26] explains that in the early 1980s financial transactions were communicated across telephone lines, via facsimile machines, and satellite transmissions that were â€Å"†¦collectively owned and operated by national governments through Intelsat in proportion to national use†. In his book, Allen[27] advises that developments in the speed of transmission of the facsimile machine during the 1980s corresponded to increases in international financial transactions. In the early 1980s a single page transmission took six minutes, by the end of the 1980s that time frame was down to three seconds. Increased speed in transmission times helped to facilitate international financial transactions, thus bringing global financial instructions closer together in terms of their ability to conduct business in a more timely manner. In today’s world, international financial transactions take place over T1 networks employing packet-switching networks that can communicate with any bank, anywhere almost in real time, as volumes of data and documents can be transmitted in seconds[28]. The significance of the advance of technology is further explained by Allen, as he stated[29]: â€Å"Changes in communications have always affected the structure of finance, but these developments of the last few decades are responsible for the truly global nature of todays financial markets. As participants use these new technologies and networks, linkages are formed between various national and international sub-economy financial markets. New international opportunities have occurred for centuries, but only recently has interdependence become so pervasive to merit the word global† The rapid developments of information technology and its impact on global monetary movements brought capitalist economies closer together and rendered the opposing state planned economy as a dinosaur, thus, along with a long list of other important development, helped to lead to the collapse of communism as an alternative economic system[30]. The developments in information sharing systems, transmission, interbank transactions, international currency and stock trading underpins what is termed as the global economy that transcends the century’s old manifestation of borders. DeMartino[31] helps us to better understand the preceding by explaining: â€Å"†¦emerging today is not just the latest experiment in economic organization, it is, indeed, the highest possible form of economy. Global neoliberalism, the extension of market-based economic integration across all local, regional and national borders, will provide humankind with the optimal means to achieve prosperity from now until eternity. With the perfection of the global capitalist market economy—and the consequent eradication of communism socialism and all forms of state planning—economic history as the contest among alternative forms of economic systems †¦ come(s) to an end.† DeMartino’s[32] statement concerning neoliberalism represents an important concept within the context of this examination, thus it shall be explored briefly, to add illumination as to its meaning. Martinez and Garcia[33] help us to understand the foregoing by stating: â€Å"Neo-liberalism is a set of economic policies that have become widespread during the last 25 years or so. Although the word is rarely heard in the United States, you can clearly see the effects of neo-liberalism here as the rich grow richer and the poor grow poorer. Around the world, neo-liberalism has been imposed by powerful financial institutions like the International Monetary Fund (IMF), the World Bank and the Inter- American Development Bank.the capitalist crisis over the last 25 years, with its shrinking profit rates, inspired the corporate elite to revive economic liberalism. Thats what makes it neo or new.† The concept of neoliberalism comes into play in terms of the ramifications of the recent U.S. subprime crisis. The following, represent market undercurrents that help to explain the underlying as well as overt facets involved that were linked factors that impacted the economy of Kazakhstan, along with the banking and financial market fallout from the subprime crisis. Per Martinez and Garcia[34] neoliberalim’s key points represent: Rule of the Market: This aspect of neoliberalism represents the freeing of private enterprise from bonds that are imposed by the state, irrespective of the impact such causes in terms of social change. The preceding entails developing internal mechanisms and policies that foster an increased openness to international investment as well as trade. In addition, price controls are removed, along with freedom of capital movement, services and goods. Deregulation: This aspect calls for the reduction of state regulation of all areas that would have an impact on reducing profits. Privatisation State owned enterprises are divested, representing banking institutions, utilities, hospitals, important industries, education system and allied areas. Unfortunately, in most instances privatisation has had the effect of putting a concentration of wealth in a few hands when systems are dismantled, as has been the case in Kazakhstan as well as other former Soviet bloc states, resulting in higher prices for goods and services. Elimination of the Concept of the Public Good or Community This represents replacement of the foregoing with what is termed as individual responsibility. This is exampled by pressuring the poorer segments of society to find their own solutions for lack of health care, employment and education, and then finding fault when they do not solve these and or similar problems Martinez and Garcia[35] further explain neoliberalim, by advising that it represents a policy reform that has been imposed by the World Bank and other g

Book

Oliver Stone used a Logical appeal making the reader to think about the case by his/ her mind and trying to convince the reader and to clarify that whatever Inside the person will motivate he/she in either ways good or evil; â€Å"It is likely that, whether they had seen Natural Born Killers or The Green Berets or a Tom and Jerry cartoon the night before their first crime, Ben and Sarah would have behaved In exactly the way they did†.Stone logically argued back with a valid point. All teenagers around Hanna 2 the world have seen the movie and they weren't affected by It like Ben and Sarah ere; the problem seems to be in Ben and Sarah, not the movie. â€Å"1 500 hours of mostly violent TV programming might have slightly more effect on these two youngsters than two hours of Natural born killers? â€Å".Ben and Sarah could have never been affected by a two hours movie and motivated them to attempt a crime; as millions of people saw the movie and they never heard about somebody who attempted a crime from just watching a violent movie, as Natural born killers was not and won't be the last violent movie. The whole problem comes from the inner of Ben's and Sarah's, both of them had a bad life where the family was not there nor taking are of them or watching out their teenage children.We can tell that both of Sarah and Ben came out from a separated and different families where the love bond was not there; but they did share similarities in their personalities as both of them were drinking, doing drugs and as they don't have any source of Income eventually they will need money to continue living; That's what actually motivated them to attempt the crimes they did, not the movie. When a person is good and have pure thoughts his/her actions will be good and useful for others too, if that person is not, probably his/her actions will hurt others.And that is actually what happened with Ben and Sarah, both of them turned to be bad and do evil actions from what they sa w In their lives not from what the movie they saw. 1 OFF Using logical appeal was not enough to Oliver Stone clarifying and defending himself against Gresham, therefore he used ethical appeal; as Stone build up his argument talking about Gresham himself â€Å"A lawyer in search of a client could see in this an indictment of the entertainment industry and not of the teenage killers and those who reared them†.Oliver Stone trying to tell us that a lawyer who is Just looking for none and does not care about lives and the safety of people is not a person to trust; how can you trust a person who doesn't care about people lives and about how those teenagers had been raised up are not a responsible people. As we should care about this generation who's coming up to this world and help them to be better people for our country not to use them Just to get clients and make some money, Oliver here is trying to defend himself by blaming Gresham and everybody who's supporting those youngster s as it's not logical that.What can control a person ? A movie or the person himself !? How can Gresham blame a movie for attempting two murders ? Ben and Sarah are eighteen and nineteen years old, they are mature enough to control their actions and it's really a childish thing to blame a movie for motivating them to attempt two murder crimes one each. What gives a man a value than any others organism is the MIND which we can use to control our actions.Hanna 4 â€Å"If Dan White, the killer of San Francisco supervisor Harvey Milk and Mayor George Nosecone, could claim that Twenties made me do it† Oliver is continuing using ethical appeals by saying that a person can not do whatever he wants then blame it to other people or things and say that it was not his/her fault as somebody else or something motivated him/her to do a crime.Watching a movie is not the big thing that can motivate you, and if it's what about those people who are losing their families in the wars, and we nev er heard about any of them turned to be a murder, even us and our friends we all watch horror movies and play violent video games and it never turned us to violent people who can go and kill the others or even Jump into somebody else car and steal it, it is Just because there is no need to do that. But Ben and Sarah had their reasons to attempt the crimes but that is not an excuse to do a crime even when you have reasons.Artists should never be blamed for societal violence; in most cases, they are merely holding a mirror up to the reality that already exists or providing catharsis for emotions we are already suppressing. Violence is there and it does exist in the movies and we can not deny that but one who's watching is the one who decides what to do and how his/her actions will look like. One should use his/her mind before going for an action and then regret it later.

Southwest Airline: on-Boarding Approach

On-Boarding Approach Southwest Airline There are a few companies out there that truly understand the importance of On-boarding. Southwest airline has taken an approach that resonates with all employees new and old. Their understanding of human culture and how people absorb information is vital to their process. Human beings are emotional creatures, thus learning from this they have produced an effective on-boarding procedure. Stimulating a positive emotion has been the Idea behind a successful organization in a fleeting industry.Southwest has established an outlook that helps the employees feel comfortable and proud of their job. â€Å"New employees must feel that they belong and are important to the organization. The supervisor, HR unit, and coworkers should be prepared for a new employee’s arrival† (Mathis & Jackson, 2010). This can only benefit the company’s goals. Southwest wants to instill these emotions during their orientation; Feeling welcomed, comfortabl e, proud, excited, inspired, and confident. (Lee) Everything matters to the employers at Southwest.Grounding these emotions into the workers has produced success in their industry. Southwest has a three year retention rate at 73% and 5 around 55%(n. d. ). Southwest topped the charts in 2010 for one of the best companies to work for. A flight attendant said, â€Å"The Company was founded on the principle that in order to succeed you need to treat your co-workers as well as your customers. †(Smith) The orientation process is pretty basic which it includes a tour of the facilities, diversity training, guest speakers, and team building exercises. This is all accomplished in one day.Southwest has applied the foundations of a successful industry through positive emotions. I personally can’t see any better way than treating others the way you would want to be treated. This comes from Matthew 7:12, â€Å"So whatever you wish that others would do to you, do also to them, for t his is the Law and the Prophets†(ESV). Citation: Lee, D. (n. d. ). Retrieved from http://www. humannatureatwork. com/articles/onboarding/onboarding-that-welcomes-and-inspires. htm Mathis, R. L. , & Jackson, J. H. (2010). Human resource management. (13 ed. ). Mason:

The Millennium Dome †a Report - Free Essay Example

Sample details Pages: 8 Words: 2538 Downloads: 7 Date added: 2017/06/26 Category Marketing Essay Level High school Did you like this example? The Millennium Dome – a Report Introduction This Report traces the history of the London Millennium from its origins as a signature statement with which England proposed to enter the 21st century, through the controversies that dogged its construction, financing, opening and operations during the year 2000, to its re-birth as the O2 entertainment complex in 2007. The central conclusion that is supported by the Report is that less than three years into its 1997 renaissance as a London entertainment destination, the controversy and the apparent mismanagement of numerous aspects of the Millennium Domes operations have been successfully cast aside. The negative public image that was the subject of numerous media and academic commentaries concerning the Dome operations have been overcome by the generally positive reviews enjoyed by the O2 venue. Don’t waste time! Our writers will create an original "The Millennium Dome – a Report" essay for you Create order The Report is constructed upon the following framework. The initial portion of the Report reviews the history of the Millennium Dome project and the significant controversies that were generated at every stage of its existence through the conclusion on the millennial celebrations in 2000. The ‘rebranding of the Dome as the O2 entertainment complex is also considered and discussed. In this context an unscientific but topical poll result that suggests a significantly favourable public opinion of the O2 facility is also evaluated. A sampling of nine perspectives taken from various published sources concerning the Millennium Dome / O2 complex is provided in the Report. The sources referenced are intended as a representative sample as opposed to an exhaustive listing of the available commentaries; the published academic opinions concerning the controversies encountered by the Dome operators prior to the opening of the facility alone exceed twenty in number. The literature surv ey is used to provide a critical assessment of the costs, benefits and risks attendant to the Dome project. This Report concludes with the observation that a difficult birth and troubled adolescence have given way to a mature London facility that will be an economically viable and culturally desirable venue for the future. The Origins and Birth of the Millennium Dome The Millennium Dome project enjoys the distinction of having been conceived under a Conservative government and raised to its full extent by New Labour. It is submitted that no matter what political perspective is taken on the entire process, there was at all times a genuine political will to make a unique British statement about the country and its attitude towards the approaching millennium (McGuigan, 2004; Myddleton, 2006). The Dome is located on the edge of the Prime Meridian. The architecture is both imposing and unique; often described as ‘iconic in appearance, the Dome has a 80,000 m2 glass fibre surface coated with polytetrafluoroethylene (Teflon) that renders it one of the few man-made structures that is sufficiently large that it may be observed from space (Sinclair, 1999; Roche, 2000; Myddleton, 74-90) A chief difficulty that plagued the Dome concept and project from the outset was the failure of the government generally to solicit grounded, objective, and prope rly developed costing estimates for the project construction. These errors were compounded when the focus switched from how the building would look upon completion to the actual day to day operation of the facility during the millennial year, and what would happen to the structure once the millennium had passed (Sinclair, 10; Myddleton, 74; Nutt, 2002). The original construction cost projections for the entire Dome were pegged at approximately  £300 million. By the time the Dome officially opened on December 31, 1999, the construction and facility costs had risen to over  £600 million. A lightening rod in the ever widening public debate concerning project costs was the use of national lottery revenues to supplement the monies needed to complete the project. The Labour government spent an estimated additional  £175 million to keep the project solvent (Nutt, 3; National Audit, 2004). A particularly trenchant criticism was published by Iain Sinclair just prior to the commen cement of the millennial celebrations in the fall of 1999. Sinclair suggested in a fashion that was subsequently proven to be prescient, that the initial excitement over the Dome and its striking appearance would never justify the amount of public money expended on the project (Sinclair, 1999). Concerns over ticket prices, the quality of the exhibits assembled in the Domes public halls and an opening night ticket fiasco all contributed an image of a facility that was poorly conceived and badly managed. The government based its revenue projections on the Dome for the one year of operations through the millennial celebrations on an estimated 12 million visitors. The actual attendance during 2000 was slightly in excess of 6 million persons; perhaps as few as 4.5 million actually paid a fee approaching the face value of  £25 per person (Nutt, 4). The Dome was largely regarded, both figuratively and in reference to its colour, as a ‘white elephant that symbolised both governme nt mismanagement of a megaproject and a lost opportunity to make a positive difference to the London infrastructure (Myddleton, 80). Two decidedly unglamorous but telling positive public benefits were derived from the Dome construction project. The first was the construction of the North Greenwich Underground station (located on the Jubilee Line). The station represents a permanent addition to Londons Underground network (Roche, 2000). The second is more esoteric but perhaps as important to the study of waste water as the new Tube station was to Londons transportation network. The public authority Thames Water devised its ‘Watercycle project to utilise reclaimed (i.e. waste water) at the site for all non-potable water uses. Thames Water constructed one of the largest ever in-building water recycling schemes in Europe for the Dome, where up to 500 m3 per day of reclaimed water was used to operate toilets and urinals (Hills, Birks McKenzie, 2002, 235). Thames Water made two important determinations in the ‘Watercycle project it could meet 55 percent of the Dome water demand at the Dome with reclaimed water; there was a generally positive response from visitors concerning the use of reclaimed water for non-drinking and bathing uses. The Dome thus made a positive contribution to modern urban planning and water use science (Hills et al, 240) It is plain that money issues and the perception that the Dome was a public works failure continued after the millennium celebrations concluded at the end of 2000. A variety of schemes were proposed for the permanent use of the facility. These included the installation of a full football stadium and supporting commercial uses; a high technology business park and related infrastructure; a hotel and cruise ship port; a large scale casino; an entertainment complex (Myddleton, 81). None was able to generate the critical commercial necessary to move forward until the May 2005 purchase of the site by Anschutz Ente rtainment, who subsequently sold the naming rights to the entire property to telecommunications giant O2. The Anschutz purchase was also controversial. Serious allegations were raised in both the House of Commons and the media that Labour cabinet minister John Prescott had improperly involved himself in the negotiations. The primary suggestion of impropriety centred on Prescotts series of private meetings with the proposed purchaser (who initially sought permission to develop a super-casino), including a trip to the purchasers home in Colorado (Guardian, 2006). Literature review The sample of literature selected in support of this Report is deliberately wide ranging, as an acknowledgement that the problems encountered throughout the history of the Millennium Dome project and its more recent success are not attributable to a single cause or factor. It is submitted that the management of the original Dome project both at the government end and on the ground was flawed. There is an unmistakable sense that both of these stakeholders were caught up in the belief that the buoyant Britain that was riding on the benefits of a relatively robust economy and enhanced international status would embrace the Millennium project and support it unreservedly as a matter of national pride. There were parallels drawn between the national attitudes observed at the time of the 1951 ‘Festival of Britain, an event staged as the country accepted its new post-imperial construction, and the so-called ‘cool Britannia image that was advanced as an appropriate reflection of the new Britain by the government, an image that was said to be furthered by the Dome project (Sinclair, 1999;); McGuigan described the structure and the project as an â€Å"†¦ideological shell for neo-liberalism† (2004, 12) A point that is well made in the academic literature but one that was overlooked in the contemporary criticisms of the project was that visitors generally enjoyed their experiences at the Dome. Hemmington and his colleagues used a large data sampling (880 interviews) to form their conclusion that the Dome visitors surveyed found many positives on which to state their opinions; the commentary stresses again how the Dome management failed to capitalize at the time on the feedback available to them to better publicise the facility (Hemmington et al, 2005, 10). The Myddleton article is particularly insightful in this respect. Myddleton avoids the limitations of political bias and partisan fault finding in his emphasis upon the good intentions t hat inevitably power government mega projects of all kinds. Myddletons review of the Dome project in the larger context of the Channel Tunnel, the British nuclear power programme and the development of the Concorde reveals that mismanagement and poor lines of authority are a far more common cause of mega project failure than any deliberate or willful act on the part of the government promoter of the day (Myddleton, 2006). Nutt, writing from an American perspective, supports this contention. Nutt uses the now infamous Tony Blair pronouncement that the Dome would represent a â€Å"triumph of confidence over cynicism, boldness over blandness† to counterpoint his argument that a series of blunders as opposed to intentional acts doomed the Dome to insolvency (Nutt, 4,5). Cost Benefit analysis and future uses On a strict expenditure basis limited to the site and facilities themselves it is submitted that the Millennium Dome project is difficult to rationalise. The financial experts retained to oversee the liquidation of the project assets noted that it is extremely unusual for a public sector company to be the subject of a winding-up. A lottery grant of  £628 million was used to finance the project; little was realised from the sale of exhibits or supporting aspects of the project (National Audit, 2). Given that the Dome was ultimately sold to a private commercial entity, the argument is there to be made that the public benefit of a one year exhibition to which significant admission fees were charged is not worth the cost. The Underground is an entirely separate expenditure. The controversy and public energy expended in delving into the reasons why the Dome project failed to live up to expectations are the further hidden costs that are never recovered. However, one may also quantif y the benefits of the Dome project over the longer term. It is noteworthy that in addition to the technical / infrastructural benefits noted above, contemporary opinion of the renewed O2 entertainment facility appears to be in line with the visitor experiences measured during the Millennium celebrations. An informal survey of this public opinion is attached at Appendix One of this Report. Ten university undergraduates are not a representative sampling of the public; the fact that none of these persons was likely a taxpayer during the periods of greatest financial controversy concerning the Dome is an important factor. The poll does confirm that the O2 facilities are well regarded (Appendix One). The results noted at Appendix One are confirmed in a contemporary market study (Marketing Week, 2007). It is also observed that the concert acts booked into the O2 arena have tended to be mainstream names that have a resonance with the public. The Appendix One poll gave the venue high mar ks for the quality of the entertainers attracted to the arena; as with the financial controversies during its formative period, the poll respondents would not have followed acts such as Stevie Wonder or Elton John during the prime years of their careers. The facility will also be used to host the basketball and gymnastics competitions in the 2012 Olympic Games. The public monies expended in the Dome construction and maintenance will be recouped to a modest degree through this converted temporary use. Conclusion It may be that an important ultimate legacy of the Millennium Dome and its O2 successor has been to cement the Greenwich area as a primary London entertainment district as the next decade approaches. The public monies spent on the Dome cannot be rationalised very readily into a balance sheet analysis. The ultimate worth of the entire project will be measured by how well the government handles future mega projects, and whether the recurring lessons of accountability and the need for rigorous data supported projections are learned. Bibliography Guardian (Leader) ‘A Hollow man and an Empty Tent The Guardian (July 7, 2006) [online] At: https://www.guardian.co.uk/commentisfree/2006/jul/07/politics.labourAccessed August 25, 2009 Hemmington, N., Bowen, D., Wickens, E. and Paraskevas, A. Satisfying the basics: reflections from a consumer perspective of attractions management at the Millennium Dome, London International Journal of Tourism Research, 2005, 10 Hills, S, R Birks and B McKenzie ‘The Millennium Dome Watercycle experiment: to evaluate water efficiency and customer perception at a recycling scheme for 6 million visitors Water Science Technology, 2002: 46(6-7):233-40 Marketing Week ‘Pros and Cons of the O2 entertainment complex, 2007 [online] At: https://www.accessmylibrary.com/article-1G1-165797956/analysis-pros-and-cons.htmlAccessed August 25, 2009 McGuigan, James Rethinking Cultural Policy New York: McGraw-Hill, 2004 Myddleton, D. R. They Meant Well: Government Project Disasters Instit ute of Economic Affairs Monographs, Hobart Paper No. 160, 2006 [Online] At: https://ssrn.com/abstract=1021302Accessed August 25, 2009 National Audit Office ‘Winding-up the New Millennium Experience Company Limited, 2004 [online] At: https://www.nao.org.uk/whats_new/0102/0102749.aspxAccessed August 26, 2009 Nutt, Paul C. Why Decisions Fail Chicago: Berrett-Koehler Publishers, 2002 Roche, Maurice Mega events and modernity: Olympics and the Expos of growth in global culture London: Routledge, 2000 Sinclair, Iain Sorry Meniscus – Excursions to the Millennium Dome London: Profile Books, 1999 Appendix One An informal study of 10 London undergraduate university students concerning their impressions of the London O2 entertainment complex and arena (formerly the Millennium Dome). The study was conducted August 25, 2009. All respondents were contacted on-line by way of the ‘Facebook social media network. All respondents were between the ages of 18 and 25 years of age. Six respondents were female; four were male. All respondents had personally visited the O2 site since its renaming and launch as an entertainment venue in 2007. Each respondent was asked to place a value of between 1 and 5 (with 1 as the lowest rating and 5 the highest) for each of the following questions concerning their personal opinion sought on each element of the O2 complex. The average score for each question is shown in bold below: 1. How do you rate the ease of transportation access to O2 4.5 2. How do you rate site in terms of ease of movement / accessibility 4.5 3. How do you rate the entertainm ent and the amenities offered at the site (apart from the concerts at the O2 arena) 4.0 4. How do you rate the quality of the concerts and other shows that have been offered to date at the O2 arena 4.25 5. What is your overall impression of the O2 complex 4.2 6. Does the O2 complex add value to London 4.0 The above results are not tendered as scientifically rigorous; the poll as conducted was intended to supplement the analysis set out in the body of the paper.