George Washington Crossing the Delaware Essay

The painting, George Washington Crossing the Delaware is an interesting and well done portrait of one of the most important events in American history. The painting depicts the American revolutionary forces as they cross the Delaware River on their way to fight an important battle against the British army. There are several important and interesting details of the painting that indicate important historical details and also serve to enhance the look of the painting. The most interesting thing is the attention to detail itself. The artist obviously took a great deal of time to research the history itself and get the event correct down to every single thing he could find. This is evidenced by the ice in the river and also the decorations on the uniforms. In addition to that, light plays a very important role in the painting. Sunlight is breaking into the picture in the background of the painting and it shines directly on George Washington. This is important because it puts the focus of the painting on George Washington and also because it adds some depth to the painting. The painting takes great care to show the absolute struggle that the Patriots had to go through just to get to the battle. Paddling those full boats would not have been easy under normal conditions, but it was especially difficult under the cold, icy conditions that were present. The painter shows that almost every person on the boat had to work as hard as they possibly could in order to make the boat go. This is important in both a historical sense and in the context of creating an interesting painting.

Martin Luther King Jr. and the Civil Rights Movement

Since the late 1600’s, African Americans have been fighting for equality. In 1865, during the presidency of Andrew Jackson, laws were imposed to segregate severely against blacks. During this time public schools were segregated, prohibiting their right to vote, and forbid them to sit on juries. At this point, African Americans became embittered and wanted to make a change in the way they were being treated. Heroes such as Rosa Parks, Jackie Robinson and Martin Luther King were role models who strived for true freedom for African Americans.Martin Luther King, imparticular, was well known for his peaceful protesting and inspirational speeches. King’s work throughout the 1960’s led to great improvements of equality among the blacks and whites. Martin Luther King Jr. was born on January 15, 1929 in Atlanta, Georgia. He was raised by both parents, which were both reverends. King’s house that he lived with his parents in was named after his grandfather being nam ed the Williams House. King’s family called him Michael because his father’s name was also Martin.Martin’s name was originally just Martin King Jr.  until his father added Luther after Martin Luther, a Protestant leader in Germany. Being raised with three children in the household, King was the second child of his family. His older sister, Willie Christine King, and his younger brother, Alfred Daniel Williams King, all lived in the same household as him. The parents of Martin gave him a happy upbringing and tried to give him everything they possibly could. During his early childhood he always played the piano, which he taught himself how to do. King’s grandfather and father also provided him with spiritual teachings throughout his young life.The immediate family of Martin was a financially secure middle-class family. Therefore he received a better education than most young children of his race. Although King was raised with excellent morals, he encounte red several racial discriminations as a child. One day he and his older sister went to buy him school shoes. As they entered, they were ushered to the back of the store to an exit because there was a policy stating, â€Å"no blacks are allowed. † This racial encounter was one of the many events that drove King into becoming an activist for equal rights between whites and blacks.  (King, Martin Luther Jr. )After attending college and becoming involved with the Christian society King decided that it was time to make a change. After many years King was able to achieve his lifetime goal, which was to abolish segregation. His changes in society were a long winding road that gave him troubles, but in the end he realized that it was all worth it. Civil Rights have been violated way before Martin Luther King became a well-known face in the fight for equality. Since the Civil War there has been a struggle for African Americans and whites to be treated the same.In the 1950s, there ha ve been more movements for the same rights. In 1954, Brown v. Board of Education, helped create the 14th amendment, which gave everyone equal protection under the law. This helped desegregate schools and merged African Americans and whites into the same school. Rosa Parks sparked the Montgomery Bus Boycott because she refused to give up her seat to a white man in 1955. Other peaceful protests and acts helped in the fight for equality. Martin Luther King also started protesting and fighting for African Americans freedom in the late 1950s.Martin Luther King Jr. was the leader of the peaceful Civil Rights Movement in the 1960’s. Martin Luther King Jr. made his I Have a Dream Speech on August 28th, 1963 in order to end racism in the United States. This speech was an eye opener and turn around for the United States. This famous speech was presented to over 250,000 Americans. The Great March on Washington was presented in front of the Lincoln Memorial for jobs and freedom. The purp ose of the speech was to achieve racial justice and equality for everyone especially African Americans.The goal was to terminate racial segregation and allow the unemployed black African Americans to get employed. It was the speech that changed America. This was the first time that the blacks and whites worked together and fought for something they wanted to change. It unified the blacks and whites. This empowering speech by Martin Luther King Jr. made everyone equal and allowed the unemployed black African Americans to have an opportunity to be employed. King’s speech focused on both â€Å"the American dream† and religious themes.He spoke about a country where his children â€Å"will not be judged by the color of their skin but by the content of their character. † (King, Martin Luther) Martin Luther King had a huge impact on the 1960s. He was able to get the country, and the world, to notice discrimination of African Americans was having through his organizatio n of peaceful protests and marches. His marches and peaceful protests were often recorded and put on TV or radio so the world could see what he was accomplishing. King’s march on Washington helped influence congress in passing a bill that John F. Kennedy created.His impacted was greatly influenced in the South, where whites were still not letting African Americans vote, even though they were free. King had a very influential way in government affairs that were dealt with segregation and equality. The struggles that were overcome in the 1960s couldn’t have been helped, with out the impact that Martin Luther King had. King's speech remains one of the most famous speeches in American history. Martin Luther King had a vision where race was not an issue and everyone was equal. In today’s society, blacks and whites are equal. Blacks and Whites use the same water fountain and attend the same schools.When King gave the I Have a Dream speech, the meaning of the speech ex tended throughout time and it made people think of what is â€Å"right†. It is became more than just skin color but helped us understand not to discriminate against people. We can clearly see the positive impact that King has had on this nation. He has helped change this nation for the better, and it is because of his sacrifice that equality is as accepted and taught as it is today. Although King was arrested multiple times for â€Å"demonstrating without a permit†, he still insisted on making the speeches that changed the world today.After he proclaimed his I have a dream speech he then decided that he wanted to change the way poor people were treated and the employment issues. In 1968, King announced that the Poor People's Campaign will culminate in a March on Washington demanding a $12 billion Economic Bill of Rights guaranteeing employment to the ones able, incomes to those unable to work, and an end to housing discrimination. On March 28, 1968, MLK delivered his I ’ve been to the Mountaintop speech. This was another very moving speech. King told the world about what he envisioned the results of the Civil Rights struggle to be.

Why Do Youths Join Gangs?

Teenagers often struggle to define themselves and their place in the world. They may choose to associate with a certain group because its members share similar beliefs, attitudes or interests. However, teens also look to others to fulfill their basic needs for such things as companionship, understanding and emotional support. When these needs are not met sufficiently or at all by the teens family, they become susceptible to joining gangs. A gang is a group of individuals who share common traits. They are often identified by the clothes or colors that they wear and have a name. Gangs are composed of leaders and followers.They typically have their own methods of communication such as language, symbols, signs or handshakes. Joining a gang requires potential members to go through an initiation of some sort. Initiations into gangs often include the endurance of physical harm or engaging in some form of illegal or dangerous behavior, failure to give proper gang hand signals could lead to a beating. There are many reasons why kids join gangs, but like most youth activities, whether criminal or otherwise, most kids join gangs for companionship and love, social, economic, and cultural forces push many adolescents in the direction of gangs too.Most commonly, teens become gang members to fill their need to belong. Oftentimes, such teens have dysfunctional families or are loners. Gangs are looked to for protection, loyalty and a sense of identity. Members consider themselves part of a family and view their gang as a source of pride. Gangs may fulfill the need for acceptance and recognition as well. However, members are required to do such things as steal from local stores, corrupt buildings with graffiti and engage in other crimes. The drug trade is harsh and dangerous.Lower rung drug dealers do not drive BMW's, wear gold jewelry, or get rich quick. They work around the clock, six or seven days a week, for low wages, often enforced by the threat of violence. Gang murders a re committed to increase profits, to control renegade members, and to protect existing territories and markets. The more cunning and brutal the gang, the better its chances of success. One misconception about joining a gang is the thought of getting rich. Some young people think gang members are rich, drive expensive cars, and don’t have to work. However, very few gang members get rich.Most of their money goes in one hand and out the other to support flash and style rather than for living. Drug dealing is actually hard and dangerous work. Dealers are always on the job. Many use pagers so if someone wants to buy drugs they can get in touch with them at any time of the day or night. They are always on guard, watching for police or rival gangs. They are constantly in danger of being killed. The odds of surviving are not in their favor. Prevention efforts can deter teens from joining gangs. The focus of such efforts is on an individuals sense of identity and belonging.The allure of gangs tends to be most persuasive among outsiders with low self-esteem and poor impulse control. Integrating teens into groups based on common interests provides a positive environment for self-development to occur. Teens should be encouraged to go to community centers and after-school activities which allow them to associate with other teens. Efforts to strengthen family relationships are also helpful, since teens tend to look outside their families when needs for such things as acceptance, belonging, recognition, protection and loyalty are not met at home.

Saturn Corporation Case Study Research Paper Example | Topics and Well Written Essays - 4500 words

Saturn Corporation Case Study - Research Paper Example ugh Saturn Corporation employs a number of robust and innovative processes in the outbound transportation systems, yet, there may be several challenges faced by the company with respect to the choice of the outbound transportation methods. Cost control is a main objective of any business. Saturn Corporation faces the issue of cost control in choosing the outbound transportation provider. Ideally, low cost modes of transportation are chosen by Saturn Corporation because the costs associated with the transportation segment have huge impacts on the total purchase prices of the company which may be carried forward to the customers in the form of destination charges. The damage rate of the goods in the different modes of outbound transportation is another major factor for consideration in this company. Prevention of damage is considered to be of more importance that the rectification of damages in the automotive industry. The level of training imparted to the employees in the outbound tra nsportation service providers is a critical factor. The handling, loading and unloading of the goods are phases in which maximum damages to the products occur. As such, the training level and skills of the employees of the transportation service providers should be considered so as to minimize the rate of damage in the products. Shipment tracking facilities, equipment utilization and capacity of the outbound service providers are other critical factors that should be considered by Saturn Corporation while choosing the appropriate outbound logistics service provider. The capacity of the transportation service providers is also significant to increase the inventory turnover rate of Saturn Corporation. An increase in the inventory turnover rates is an important objective for any automaker. This can be achieved through the employment of dealers with multiple loading capabilities. A suitable combination of the available outbound transportation services is to be considered to improve the

Corporate social responsibility in Asia Essay Example | Topics and Well Written Essays - 2500 words

Corporate social responsibility in Asia - Essay Example By initiating education, environment and health care programs, the government has established an avenue that firms are now adopting. For example, in 2009 the Chinese government launched an expansive tree planting program and in response Chinese based firms established tree planting as part of their CSR initiatives. Another notable aspect that makes China maintain a strong business to business relationship is the support among various organizations that operate in China. For example, based on its effort to support small enterprises and conserve the environment, Wokai benefits from the support of Cathay Pacific Airways and Morrison & Foerster that provides financial and legal support respectively (Chen and Dean, 2007). One of the major challenges that faced China is the earlier cases of violation of human rights that created a negative image of the country business atmosphere. Major cases that created a negative image for the government was the use of prison labor in order to produce p rofitable products in the international market. In the area culture, Alan (2003) argues that the government has been noted to violate human rights by persecution of individuals who engaged in activities that threatened the control of the government. However, in its effort to create investors confidence, the Chinese government has engaged in dialogue with foreign countries on the matters of human rights. For example, in the past 5 years, the government has invited delegations from Britain, France, Australia and France to access the human right situation. The major country that has led in the ending of human rights violation in China is US. In their studies on the impact of human rights on business investors in china,... One of the major aspects that make Japan a country with business opportunities is the extensive use of CSR in the Japanese corporate management. As compared to Europe and the US where firms aims at attaining short-term returns for their shareholders, Japanese companies place high value to all the stakeholders including the customers, employees, shareholders and members of the community (Waldenberger, 2007). In this regard, majority of companies in Japan have established departments that deal with corporate social responsibilities. Yamaha Company, a Japanese based firm is one of the key companies that have initiated a strong CSR department. Through this department, the company initiated Yamaha Forest reforestation program in 2010. During the first phase of the program that took place in Sukabumi Regency, Yamaha Motor Company in collaboration with Yamaha Corporation planted approximately 115,110 trees. Other organizations that are engaged in the environmental conservation in Japan incl ude Japan International Cooperation Agency (JICA) and University of Kuningan among others.

Abraham, the Greatest of Israel's Patriarchs Essay

Abraham, the Greatest of Israel's Patriarchs - Essay Example This has been the life that Abraham went through and has been considered for centuries, as the greatest among the patriarchs. Considered the â€Å"Father of faith† by the New Testament heroes, Abram, whose name was later changed to Abraham as a part of God’s covenant with him, did not just represent a life that received the promises of his God, but also, showed how he may have struggled to develop the faith that he is now known for. Abraham’s weaknesses as shown in the narration of his life in the book of Genesis are almost minimized by the completion of his faith as he obeyed God. However, what probably brought more fame and appreciation to this patriarch not only among the Jews but among other nations as well, is not just his moments of achievements but also his first steps when he was asked to leave his hometown and obey the God who has not been introduced to him in his place. Ur, the homeland of Terah, Abraham’s father (Genesis 11:31), is a place where polytheism is practiced and so it could be safely considered that Abraham was raised in such beliefs (Vos). However, when he heard the voice of God, without a doubt, he took his first step to the place God promised for him without even knowing where it is located or what lifestyle and economic status they might have there. The call of Abraham could be considered something great because with all the weaknesses Abraham showed afterwards, God still raised him to become the ancestor of Israel. He was not a perfect choice if one would look at the standards of a perfect God, yet, his weaknesses were overlooked and his strengths were rather magnified and nurture in the process. Faith and obedience were the basic ingredients Abraham possessed, and these qualities were needed for the task God had in store for the person He wanted to have a covenant with, and the great patriarch showed these through his obedience without question. However, the same faith that he had was still to be put to te st in the many circumstances he had to undergo within twenty-five years before he will finally get the point of God’s covenant with him. When he was seventy-five years old, Abraham was called from Haran to Canaan and although at that age, he and his wife, who was ten years younger, did not yet have a child; God promised Abraham to make him into a great nation and he believed Him (Genesis 12). It was only faith that would make an old man with a wife who was on the post-menopausal stage, believe God to make Abraham’s descendants numerous as the stars or countless as the sand. Abraham was the first among the patriarchs with whom God covenanted with and his descendants always referred to him whenever they claim the promises of God, reminding Him of his covenant with Abraham. For the creator of all things in heaven and on earth to make a covenant with His creation, there must be something great in the human being to have attracted the eyes of God and Abraham had such qualit ies. Although Abraham was not perfect in all his ways rather, he was a picture of great faith when God speaks to him about His covenant but, in times of trials, he showed little faith. For instance, during a time of famine that he and his wife had to go to Egypt for some time so that they will not perish because of all the hardships the famine brought, he feared for his life and asked for Sarah’s protection. He knew that his wife was very beautiful and that the Egyptians can kill him for her sake. He then asks his wife to tell the Egyptians that she is his sister so that he would be treated well instead. Sure enough, he was given many gifts because of Sarah, however, God inflicted serious diseases on Pharaoh and his household so they

Power within the United States congress Essay Example | Topics and Well Written Essays - 500 words

Power within the United States congress - Essay Example In contrast to popular belief, the Congress and presidents have always been at loggerheads. This is because on numerous occasions the Senate, House of Representatives are controlled by different parties. Over the years, the Democrats have had a considerable advantage over the Republic with regards to this control. The above section clearly shows there are serious issues relating to the balance of power between the Congress and the Office of the President. There should be a clear definition of duties to minimize conflicts between the president and the congress (Denhardt et al., 2013). Secondly, they should meet on a regular basis to ensure that they are on the same page with regards to public policy as well legislation. Thirdly, there should be effective communication between the two parties to minimize conflict. Finally, the parties should work towards achieving the greatest benefits for the citizens. The above mentioned strategies can be employed to solve the issues relating to the balance of power (Heady, 2001). To start with, the clear definition of duties means that each of the parties will perform the tasks that they are required to with minimal conflict. Secondly, the regular meetings ensure that the two parties compare their duties and activities on a regular basis. Thirdly, effective communication ensures that any issues are dealt with on a timely basis (Schickler, 2001). Finally, when both parties work for the greatest benefit of the people there will be fewer conflicts since both work towards achieving similar goals. This entails the composition of the congress based on the political party membership. In the 113th parliament, between 2013 and 2015, there were a total of 100 members in the senate. Fifty four members are from the Democratic Party, Forty five members are from the Republic party and one member is from another party that is classified as others

Business Law Essay Example | Topics and Well Written Essays - 1000 words - 10

Business Law - Essay Example 10 of the said Act. Should her act of carrying an umbrella be construed illegal carriage of weapon? Must umbrella be considered part of the weapon defined in the Sec. 10 of Celebrations Control Act of 2007? Following the four (4) step process, this paper intends to discuss common law rules of statutory interpretation in order to establish whether or not Thalia has really breached Sec. 10 of Celebration Control Act of 2007. With the use of the four (4) step process, this paper shall also discuss review of administrative action by the court to establish whether or not the Constable acted ultra vires when he confiscated Thalia’s umbrella. Step 1. The identified area of the law is statutory interpretation. It is important to establish the common law rules of statutory interpretation to come up with a sound bases for the decision whether Thalia is guilty of the offense. Step 2. The Principles of the Law must be discussed in order to see its relevance to the case. Sec. 10 of Celebration Control Act 2007 is relevant and is consistent with many laws that ensure the safety of the general public from any harm especially during mass actions and protests where Thalia happened to be around. It is consistent with the Umbrellas (Prohibition) Act 1985 which is an Act to prevent a common cause of eye and face injuries which states: It is indeed dangerous to carry weapons that would endanger the safety of the public so much so during celebrations such this when a lot of people might be affected. Sec. 10 of Celebration Act 2007 is based on the principle that the lives of the people in public places must be protected and be ensured from harm. The right to safety and life is enshrined in the Universal Declaration of Human Rights and in the Constitution. Article 13 Sec 16 States: â€Å"Every one has the right to protection against bodily harm.† The United Nations (2007) has also documented cases of killings because authorities failed

Analyze the in Office Ancillary Services Exception to the Stark Act as Research Paper

Analyze the in Office Ancillary Services Exception to the Stark Act as it relates to block leases - Research Paper Example he medical practitioner is financially associated with the care services; and d) the medical practitioner implements referrals to a care provider for purposes of furnishing the DHS. Physicians and health practices depend on the in-office ancillary services and related medical practice exceptions to the Stark law to permit DHS referrals within the parameters of the practice. Of these, Washlick (2008) noted that the in-office ancillary services exception is most commonly applied because it enables physicians providing various services to: a) make referrals for select DHS within the confines of medical practice; b) inform those DHS to provide the necessary patient care; c) apply Medicare and Medicaid cover to defray the costs resulting from the services; and d) retain and channel the revenues collected from rendering the services within the practice for settling practice expenditure and physician remuneration. These exclusions are therefore of great value to the rendering of patient services and other internal activities. As Micklos and Sevell (2004) noted, the in-office ancillary services exception (IOASE) is arguably the most significant allowance given under the outlaw of self-referrals of select health services by medical practitioners. In the recent past, however, renewed attempts to revisit referral rules have threatened the effectiveness of physician practice. For instance, the federal budget for the 2014-2015 financial year contains a number of measures which are intended to enhance a greater level of proper remuneration for the proper rendering of health care under the Medicare platform. The budget is responsive to various recommendations by the Government Accountability Office (GAO) and MedPac that self-referral of simpler services culminates in a higher volume of care when they are integrated with payments for the service fees (Clark, Johnstone, Lynch, & Cardenas, 2004). The Budget seeks to limit the IOASE by permitting only practitioners who meet given

Consumer Behavior of Kotak Mahindra Bank Essay Example for Free

Consumer Behavior of Kotak Mahindra Bank Essay On â€Å"Identifying, analyzing and understanding the consumer behaviour pertaining to Kotak Mahindra Bank Ltd. Products exclusively at Raipur (C. G)† For Raipur Branch Submitted for the partial fulfillment of the requirement for the award of the degree of Masters of Business Administration. (MBA) PREFACE Quite frequently these days’ people talk of research, both in academic institution and outside, several studies are undertaken and accomplished every year, but in most cases very little attention is paid to an important dimension related to research i. e. its practical importance. It may be noted in the context of planning and development that the significance of research lays in its quality and not in quantity. As far as this project report is concerned, the report consists of four chapters along with bibliography and Appendix, well arranged in coherent manner. Chapter one is an introduction, presenting up an over view of the Chapter two contains of Research methodology which includes all the necessary aspects. Chapter three contains data analysis and interpretation and chapter four contains of Main findings, Conclusion, limitations and suggestions. So, through this research work I tried to explain about my study of   along with the customer’s feedback or their responses, through which we come to know about the strength and weaknesses of the bank. I shall amply reward, if this project report proves helpful in the development of knowledge of the reader as well as from companies point of view. I am also thankful to all staff members of Kotak Mahindra Bank Ltd. And all the customers of Kotak Mahindra Bank ltd for providing me relevant information and data which are very much necessary for the completion of this project report. I take this opportunity to express my heartiest thanks obligation to Dr. Prachi Singh (Lecturer), Disha Institute of Management and Technology Raipur (C. G), who has rendered me invaluable instructions and guidance for preparing the project report. Finally I am highly grateful to all faculty members who helped me as well as the persons who have shared their valuable time and helped me directly or indirectly in the preparation of this project. Executive Summary This basic concept of my project â€Å"Identifying, analyzing and understanding the consumer behavior of KOTAK MAHINDRA BANK LTD. Products exclusively in Raipur† was based on survey as a well as study of their whole banking areas. Through this survey I have to give the actual data to KMBL that what are the responses or feedback of their existing customers regarding the KMBL after attached with this Bank. Therefore I have prepared two different Questionnaires. First for the existing customers of KMBL and the other one is for Non-Existing customers or new customers. Through the feedback of the existing customers of the KMBL, I’ll get to know that what are the companies strength and what are their weaknesses, so that they will work on those areas. Where as through non existing customers I’ll get to know about the requirements of other persons operating from different banks i. e. , what they need which they are not getting from their existing banks. Basically the topic of this project is taken by myself only. But when I discussed this topic with my project guide Mr. Sudeep Banerjee (Branch Sales manager) KMBL, he told me that this topic is very much important as far as KMBL is concerned. Because as it is only around 1 year has been passed that Kotak Mahindra Bank Ltd has been launched in Raipur city. So being a 1st summer trainee of KMBL Raipur branch, it was a great opportunity for me to take up this topic as a challenge. Because the result of this project or survey will be very much beneficial for me as well as companies point of view, so that they will get to know about their strength and weaknesses and they will know that how much of market they have captured in this period of 1 year, What people think about this Bank? I started my summer training or project on 11th June 2007. To know this fact and data I went to the existing customers of Kotak Mahindra Bank ltd. As well as to non-existing customers. I collected all the data from existing and non-existing customers of Kotak Mahindra bank ltd. Through questionnaires in Raipur city. I have prepared these questionnaires with the help of my project guide by keeping into the mind that these questionnaires are very much beneficial from company’s point of view because the result of this survey will help the bank to know their strengths and weakness and according to that they will take corrective actions on those areas. While I was studying about the bank I found that within a period of 1 year Kotak Mahindra Bank Ltd has captured that Raipur market quite nicely. And while I was analyzing the data that I had collected through questionnaires I found that the products and service that Kotak Mahindra Bank ltd is the major part because of which customers are attracting towards this bank. Because the service and products Kotak is providing is quite unique from other banks apart from this the major weak point or the lacking point that Kotak Mahindra bank has to consider is the promotional activity of Kotak Mahindra Bank is very poor. Many persons are there who don’t know about this bank. Another thing is that minimum a/c balance in this bank is quite high i;e. AQB (average quarterly balance). Apart from my project I did business for the Bank. I used to go out to the market for selling products of the bank and I really sold their products. Due to this I grab great experience to communicate with different types of customers, which was really good experience and will help me in my future course of life. The major part of my training is I went t o siltara at NECO and Corporate Ispat alloys ltd. This was the greatest experience of my life to see big plants and machineries along with which I talk to the HR person and officers there. Regarding the salary accounts of their employees. During my summer training I was called by my project guide to give presentations on the Bank products in front of all the employees after studying the products and services. And after the presentations they used to ask questions to me. And I really appreciated by my staff members and coulleges. During the collection of the data I found some difficulties like the customers had no time to give time or they were too busy with their works and in most cases they were not available at their places. I generally went into the market in hard sunlight and manier times its rains. I took some action to solve these problems like I took data through telephone, observation. There is one thing that I have found that the peoples working at Kotak Mahindra Bank ltd are very much helpful in all areas. Every time they come to me and told me that they are available at anytime for me for anything, which really boost me and motivates me towards my goal and objectives. The culture of Kotak mahindra bank ltd. is very much friendly and cool to work there.

Impact of the Technological Revolution

Impact of the Technological Revolution 1 INTRODUCTION The role of technological revolution has touched every aspect of peoples lives from shopping to banking. The changes have great impact on services quality and banking activities has enabled the banks to compete in the world markets (Siam 1999-2004, 2006). The banking industry worldwide is witnessing a growing technology driven self-service by way of electronic banking (e-banking) through interacting with customers as a way of increasing productivity. The use of Information Communication Technology (ICT) helps the banks in making strategic decisions by enabling better alignment of business to build better relationship with customers. ICT has enabled banks to provide the following services: Automated Teller Machines (ATM) that have been installed at convenient places for customers to access their accounts anytime. Electronic Data Interchange (EDI) that allows different organisations to exchange transactional, financial and business information between their computer systems. Plastic Cards designed to pay for goods and services without necessarily using cash and also to withdraw cash from ATMs located worldwide. Electronic Clearing Service (ECS) is a facility that allows fund transfer from one bank to another electronically. It can be used for bulk or repetitive transfers either by institutions for dividend distribution, salary, etc. and pension, or by individuals for regular payments to utility, loan repayment, etc. Internet Banking as a channel of Electronic Banking (E-banking) allows the customer to do transactions through the banks web page in a flexible mode, i.e. at anytime and anywhere. The flexibility of E-banking is a major benefit to customers because they are able to access the banking services at the comfort of their homes or offices and no more queuing at banks. For the banking sector, E-banking is a big investment on capital and resource though the initial acquisition of relevant infrastructure, standardisation and security are expensive, especially for small banks in developing countries, but not a big problem for big banks in developed countries. These also have to follow the standard legislative and regulatory issues set within a country to protect customers rights, especially the concerning data protection. 1.1 Background of Study The role of internet has become unavoidable to business and society. Businesses and governments worldwide are always working on how to better utilise the internet in order to increase their penetration into the global market (Khan, Mahapatra Sreekumar (2009). Banking sector has seen the use of Information Technology (IT) a better way of reducing the traditional way of investing and moving along the modern technological changes in order to meet up with the global market. The growing changes in technology bring economical and social consequences on our daily life and these changes brought about the Internet. The Internet provides services like, World Wide Web (WWW), Automated Teller Machines (ATM), Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which are the core business services of E-banking. The banking sector has embarked on internet banking systems to enable their customers to access their accounts globally and in a flexible mode through their websites. Thi s move to internet banking has seen banks reducing long queues as some customers can serve themselves either through the ATMs or through the website, depending on the type of service they want to perform. Though the banking has embarked on internet banking systems, it has not totally abolished the traditional banking activities. This is to allow those customers who need face to face help to still come to banks to get help on whatever activities or services they need either because they do not trust the web or because they are unable to do not know the technology used and fear to make mistakes. Internet is used world wide for different things, some good and some malicious. This then brings in the issue of trust on the part of both the web site owners and users. Some users still prefer to go and queue in the banks because either they do not trust the web services or are unfamiliar with the systems and therefore feel uncomfortable to use e-banking. Trust should be built in order to encourage more customers to use the web site for their banking service needs. Trust can be categorised into tangible and intangible trust. Tangible trust is an implied trust that can be addressed by the use of digital certificates and SSL protocols and service level granularity. On the other hand intangible trust is something that can be formed or reinforced and is subjective, emotional and has a rational component. Trust can build or destroy the organisations reputation. 1.2 Motivation of Study There has been considerable work carried out in the field of e-banking/e-commerce trust (Smith French 2005); (Khalil 2007), however, there was a gap in their knowledge of cultural gap, especially in developing countries like Botswana. The motivation on this research is as follows: The need to show the importance of localisation of e-banking site as e-banking is a new phenomenon in Botswana. To make further studies on cultures of two ethnic groups within the same country as there have been very little research on this area. This is not the case with developed countries as the studies show that there has been localisation of e-banking to suit their target markets (Singer, Baradwaj and Avery 2007). 1.3 Aim The main aim of this research is to examine how the Tswana and Kalanga ethnic groups of Botswana culturally perceive trust on a B2C e-banking website and to design an e-banking website for each ethnic group. 1.4 Objectives The following objectives will be achieved through this study: A research will be carried out on how cultural background influences the trust and use of e-banking services. To relate the findings of the research in the design process of a web sites that suits the culture for Tswana and Kalanga ethnic groups. 1.5 Research Questions The research study aims to test the following key questions: What is the impact of culture on the contents of e-banking site? How does culture affect online trust in e-banking? Is it necessary to consider culture, trust and usability in designing e-banking website? How does Tswana and Kalanga cultural differences affect e-banking? 1.6 Methodology The research employs both primary and secondary data. Primary data will be collected through a structured survey which will be an online. The online survey will be through email where a link will be sent to the respondents in Botswana and UK. This method is chosen because it is flexible in that the respondents answer the questionnaires at their own free time and in a flexible mode of their computers. The other important thing is that it is cheaper to administer and responses are received more quickly and also that if there are any errors in the questionnaire it is easier to correct the errors. 2 E-SERVICES AND CULTURE WHAT IS THE RELATIONSHIP 2.1 E-Commerce and E-Banking The development of Information Technology and the advent of internet have enabled traditional business activities to change into Electronic Commerce (E-commerce). E-commerce is a process that allows businesses and customers (B2C) to exchange goods and services electronically anytime anywhere, and it includes banking, stocks and bonds, retail shopping, movie rentals, etc. E-Commerce has opened a global market where businesses can reach their respective customers quickly and cost effectively (Li et al 2009). For trading to be successful in this virtual world, trust must be considered vital not forgetting culture. E-commerce includes inter-organisational marketing process in which the following relationships are observed: B2B (business to business), B2C (business to consumer), and C2C (consumer to consumer). E-banking sometimes called electronic banking or internet banking is a system that allows people to conduct transactions and manage their accounts without necessarily going to the brick and mortar banks. For customers using internet banking to access their account, they need to have personal accounts at the respective banks websites. For e-banking to be effective, banks should invest on IT infrastructure like Hardware, Software, Networking which include connection to the internet. Automated Teller Machines (ATM) and personal computers have reduced the cost in favour of banks on paper work and labour force since customers use self services offered by banks. However, it should be noted that there are still some people who would want to be served by bank officials either because he/she does not know how to operate the banks system, does not trust it or want face-to-face interaction with bank officials. 2.1.1 Benefits of E-Banking Electronic banking or online banking is the most popular means of e-commerce for millions people worldwide. Most banking products and services are now offered over the Internet. Banks have invested in robust information technology practices and secure-transaction technologies that have made electronic banking trustworthy. This has also created some benefits on e-banking as follows: Convenience and flexibility as the customer is able to pay bills, shop and transfer money from anywhere at any time suitable to the customer as long as the customer has access to a personal computer and internet connectivity. There is no strictness of business hours as the services are available 24 hours every day unlike in the traditional brick and mortar where a customer has to observe working hours. Customers are able to manage their customers as they are able to access their accounts and therefore can cross check their accounts anytime. To the customer the only cost associated with e-banking is the cost of the time spent online which is usually charged by the internet provider. There is also time and money saving as customers do not have to travel distances to their respective banks unless on crucial issues. 2.1.2 Limitations of E-Banking As well as electronic banking have advantages there are some limitations too. Below are some limitations on electronic banking. Some bank websites have too much information that confuses the customers and the customer may feel it is a waste of time as he/she does not get the information that he/she wants and may never bother to visit the website again. The financial needs of the customer may not be quickly be predicted and therefore will take some time to be solved, which is an inconvenience to the customer. Hacking and identity theft are on the rise this calls for a certain amount of trust placed on the banks by electronic banking customers. The system should be able to stand against hacking. There is no Face-to-face interaction in electronic banking and some customers still need this type of service that are observed in a traditional bank to quickly solve or answer customers queries. In case of internet failure the customer is unable to withdraw money from his/her account and unable to even use the ATMs or credit/debit cards. Some banks charge for ATM usage by non-customers, therefore if a customer stays where there is not ATM for his/her bank, then he/she will be charged to using the facility of another bank. 2.1.3 Security and Trust Security issues are a major concern for everybody using internet whether for banking purposes or not. There is an increase of security risks in the banking sector as their systems are exposed to risky environments. Confidentiality, integrity, privacy and availability are the core areas of security that banks and financial institutions must address (Jide Awe 2006). This calls for banks and financial services authority to plan ahead in monitoring and managing the security threats. The security threats are classified in three categories; breaches with serious threats (e.g. fraud), breaches caused by casual hackers (e.g. web sites defacement or services denial (e.g. causes of web sites to crash) and flaws in systems design (e.g. genuine users able to see or use another users accounts). These threats cause serious financial, legal and reputational implications to the banks affected. Banks and financial institutions need to put in place security measures to respond to these threats. The security measures need constant update in order for them to cope with the ever increasing and advanced threats. The banks should also have sufficient staff who have security expertise in order to keep on checking and updating the banks systems. These threats bring in customers lack of trust on the electronic banking that is why some customers prefer to queue at banks to get services that they would have otherwise done through the internet. Trust should be built in order to encourage more customers to use the web site for their banking service needs. McKnight, Cummings and Chervany (1998) define trust as an individuals beliefs about the extent to which a target is likely to behave in a way that is benevolent, competent, honest, or predictable in a situation. Trust can be categorised into tangible and intangible trust. Tangible trust is an implied trust that can be addressed by the use of digital certificates and SSL protocols and service level granularity. On the other hand intangible trust is something that can be formed or reinforced and is subjective, emotional and has a rational component. Trust can build or destroy the organisations reputation. Trust is very important and should be the critical area for each bank to consider because if customers do not trust a bank then the bank will be out of business. Trust on e-banking is crucial because it can make the banks to lose money and popularity if hackers are able to access customers accounts. It can be ensured by putting stringent measures on the banks systems and including in its website the symbols/signs and text that will make the customer aware of the security of the website. Some researchers believe that in electronic cyber consumer trust is more important than in traditional transactions (Kim, Ferrin and Rao 2007). There are signs and symbols that are used in the website that indicate to the customer that the site is trustworthy. These trustworthy signs may be explicit and some implicit (French, Liu Springett 2007). 2.1.4 Cultural Models The world is comprised of people with different cultural backgrounds which justifies their behavioural variation. This variation usually shows the different cultures and values of these people. Culture is something that identifies and differentiates one person from another and it is something that is not inherited or from genes but it is learned. The environment in which a person grows usually determines the persons culture because he/she learns the language, the norms and values of the people with which he/she lives. Hofstede (1991) defines culture as the collection of human mind that distinguish the members of one human group or category of people from those of others. The manifestation of cultural differences is formed through a combination of four characteristics: symbols, heroes, rituals, and values. Rituals are sacred things that must be carried out within a cultural environment. Values are cultural things that are mentally stored as one grows up within the cultural environment. Symbols are things like language, pictures/objects and gestures that depicts meaning understood within the same cultural group. Heroes are people respected and considered to be role models within a cultural environment, however, this changes as the child graduate into adulthood. Cultural differences across the world vary according to ethnic groups and also across geographic boundaries. 2.1.5 Hofstedes Cultural Dimensions Hofstede (1984, 1991) identified the following five cultural dimensions which could be used to compare and measure cultural differences. 2.1.5.1 Power Distance Index Power is not distributed equally among the society. This is indicated by some people having more power than others, eg. some people are born kings, chiefs already having that status even at the very early age as toddlers. These people will be respected from that very early age even in way they are addressed. However, the power distance can be measured differently depending on the difference in society. There are those that are termed as large power distance culture where the subordinates do as told and the superior gives instructions and is the only one who decides what is good for the society or organisation. On the other hand there are those that are termed low power distance where there is consultation between the superior and the subordinates. In this category the superior respects the subordinates and entrust them with important assignments believing that they will be successfully completed. 2.1.5.2 Individualism versus Collectivism In individualism can be classified as nuclear family where each individual act independently, making his/her own choices and decisions. As a member of the nuclear family, the individual has to take care of himself/herself and his/her immediate families. On the other hand collectivism can be classified as patrilineal or matrilineal where people, after being integrated into the society at birth, are looked after by extended families. 2.1.5.3 Masculine versus Femininity Division of roles depend on gender, Men must provide for their families and female must take care of the children and the whole family. The assertiveness of men creates dominance over female on economic life within the family irrespective of whether it is an extended or nuclear family. However, in developed countries there are some variations on gender role pattern that enable females to enrol in courses that were initially designed for men and therefore do jobs that were done by men. In some underdeveloped or developing countries where the gender role pattern still exists, women are barred from doing jobs that are considered to be designed for men and women are also barred from enrolling on courses that are designed for men. This gender role pattern is still strictly followed in some underdeveloped countries where men are said to be head of families and thus gives the men all authority over everything that goes on in the family. Woman in such families do not have any say, they are t old what to do, how and when by their husbands and they are not supposed to question the instructions from men. 2.1.5.4 Uncertainty Avoidance Index (UAI) Most people fear uncertain situations because they cannot predict what might happen in the near future. To minimise this, organisations or societies engage strict laws and rules, safety and security measures, and religious and cultural beliefs to protect their organisations or societies. However, avoidance of uncertainty varies according to cultural differences. In high power distance culture, the boss is the only one to make decisions and the subordinates must strictly follow the bosss instructions. Subordinates expect the supervisors to tell them what to do because they regard each other as unequal. In organisations, this is also indicated by the wide salary gap whereas in societies it is indicated by the prestige given to superiors (e.g. chiefs) by their subordinates (e.g. tribes). In low power distance culture there is respect by supervisors over their subordinates. The supervisors entrust subordinates with important assignments trusting that the work will be done efficiently and if there is something wrong the supervisor will not put the blame on the subordinates, but rather takes it upon himself. The society believes people are equal irrespective of their education, religion or wealth. There is more democracy as subordinates views are sought and taken into consideration when making decisions. 2.1.5.5 Long-Term Orientation versus Short-Term Orientation The long-term orientation versus short-term orientation is a model which came a after Hofstede was convinced by Michael Bond who called this dimension the Confucian dynamism. Values of long-term orientation are more oriented towards future e.g. perseverance and thrift while on the short-term the values are more oriented towards past and present and therefore more static e.g. respect for tradition and reciprocation of greetings, favours and gifts, personal steadiness and stability. 2.1.6 Trompenaars, Hall and Other Cultural Models There are several cultural models most of which overlap into Hofstedes models (Kluckhohn; Trompenaars 2000). Trompenaars developed the below models: 2.1.6.1 Universalism versus Particularism This can be viewed as authority versus consultation. In authority the one who has authority gives instructions and makes decision without the involvement of others whereas in consultation other peoples views are taken into consideration when making decisions. 2.1.6.2 Individualism versus Communicationism Where there is balance between individuals and groups needs. 2.1.6.3 Specific versus Diffuse Relationships Here the business is done on an abstract relationship (contract) or on good personal relationship in order to bring in liking and trust. 2.1.6.4 Neutral versus Affective Communication Styles In this dimension people hide and hold on to their emotions or they show them up in which case they expect some emotional response. 2.1.6.5 Time Orientation Monochromic culture focuses more on performing the task promptly meeting the original plan and prefers to do one task at a time. Polychronic culture tends to e multi-tasking, doing different things at the same time, and emphasis is more on relationship than on tasks. 2.1.7 Halls Cultural Models Hall (1976, 1983) developed the three cultural dimensions in which he describe how people behave. Following are his Cultural Models: 2.1.7.1 Context High Context People are helped by many contextual elements to understand the rules and it is a problem for those who do not understand unwritten rules. Low Context More explanation on rules is done as things are not taken for granted and therefore there is less chance of misunderstanding. 2.1.7.2 Time Monochronic Time is where one thing is done at a time and the concern is achieving the task on schedule. Polychronic Time is where several things are done at the same time (multi-tasking) and here the concern is on relationship and not schedule. 2.1.7.3 Space High Territorial Some people have greater concern for ownership and try to mark their territorial boundaries whether at home, parking space and even in shared offices. Low Territorial People here are not much concerned with ownership of space and for them it less important Hofstede, Trompenaars and Hall did extensive research that enabled them to conduct rankings on countries cultural differences. Hofstede conducted his research on 50 countries whilst Trompenaars conducted his on between 19 and 52 countries though with fewer rankings. Although it does not clearly show whether Hall did any rankings but he did a comparison of cultural dimensions among the French, Americans and Germans. 2.1.8 Tswana Culture Households in the Tswana polities usually take the form of three residential sites: one household in the village, one at agricultural holdings outside the village but not very far from the village (where ploughing takes place) and the last a cattlepost (with kraals for keeping livestock owned by the family). †¢ Power Distance: Tswana tribes greatly respect their elders which is shown especially when the younger ones greet the elders. In Botswana greetings are used to judge somebodys behaviour and greetings are conducted in a certain manner. When greeting an elder, a younger has to stop a bit to show respect and if the younger person is a male wearing a hat, he has to take it off to show respect to the elder. A man also has to take off his hat when getting inside the house as a custom unless the man is a widower. Each Tswana tribe or ethnic group has a Chief (Kgosi) who is helped by paternal uncles and Headmen. The paternal uncles are by virtue of close relationship to the Chief advisors as they are considered to have the royal blood. Kgosis traditional court is called Kgotla, and it is the main customary court within the village where disputes or misunderstandings that could not be solved by Headmen are solved. The Chiefs Kgotla also acts as the Traditional Court of Appeal within th e village, where people who are not satisfied with the Headmens rulings can appeal. Chieftainship is inherited, so for a person to be a chief he/she has to be born from the royal family and not somebody chosen. Most of the Tswana people are Christians as Christianity was brought in Botswana as early as 1845 by a Scotsman named Dr. David Livingstone. The first Christian to be baptized by Dr Livingstone was Chief Sechele of the Bakwena and this was a good sign towards improvement in peoples way of living. For a chief to be a Christian it was easier to convince other chiefs and the people to become Christians. Christianity also contributed a lot to Tswana culture as it reduced the bureaucratic principles where only one person would make decisions for the whole family or tribe and nowadays consultation is the norm. †¢ Individualism versus Collectivism: Collectivism is the norm with the Tswana Culture where somebody has to take care of his/her family and also the extended family like uncles, grandparents, aunts, nephews and nieces. In the olden days class differentiation was very low and mostly invisible because traditionally those who had more cattle would help those who had none by distributing the cattle to those households for management. This helped the families because they would use the cattle to plough with and user their milk to feed their own family. This management of cattle also resulted in people being paid by one cow every six months or every year depending on the agreement between the owner of the cattle and the person taking care of the cattle. However, some people do not want to take the responsibilities of extended families and that is why there are organisations like SOS and other orphanage organisations to take care of orphans and also the government is giving out food r ations on monthly basis to orphans, elderly people and families considered to be very poor. †¢ Masculinity versus femininity: In the traditional Tswana setup masculinity is the norm, roles are distinguished according to gender, and this is clearly visible in traditional ceremonies where men are the only ones to sit on chairs and women sit on mats and also that in meetings men are to speak first and women are to confirm what the men have said. Men were considered heads of the families and therefore their decisions were final and unquestionable. But since the Beijing Declaration and Platform for Action at the Fourth World Conference on Women in 1995 (United Nations World-Wide Web page 1995) and the government of Botswanas emphasis on equality, some jobs/tasks which were considered to be for males only are now considered unisex. At present there are some women chiefs in some Tswana tribes which traditionally the chieftainship was considered to be for men, even if the chief would die only having daughters that meant chieftainship would be given to one of the partenal uncle s or his elder son. By this the chiefs family would have lost the chieftainship inheritance. †¢ Uncertainty avoidance: Tswana ethnic group used to believe in ancestors and most of them liked to consult traditional healers for different illnesses and protection against evil spirits. Since the introduction of Christian religion through Dr David Livingstone in 1843, most people no longer believe in traditional healing. The staple food for Tswana is sorghum or corn meal porridge which is made thinner for breakfast and thicker for lunch and supper eaten with some relish which may be chicken, meat from goat, sheep or cattle (sometimes pounded), caterpillar known as phane and various wild game and vegetables. But these cultures of food have now shifted a bit but are more common in ceremonial occasions like weddings and funerals and also westernised foods are prepared like coleslaw, pumpkin, squash, rice, etc. †¢ Long-term versus Short: Tswana culture used to allow children to go to school only to learn how to read and write. Most female teenagers were taken out of school to go and be married to elderly men as an arranged marriage between the parents without the agreement of the female teenager, but now people find their own partners and marry when they feel they are ready and not pushed. 2.1.9 Kalanga Culture Kalanga tribe is found in the north eastern part of Botswana and some in Zimbabwe, only separated by the border. The Kalanga tribe in Botswana, who are still withholding their culture, are mostly found in different villages within the north east side of Botswana. The Kalanga Language was taught in primary schools until 1972, six years after Botswana gained its independence from the British, and now the Kalanga tribe believe that since the discontinued teaching of Kalanga Language in primary schools their culture has been jeopardised. The staple food for Kalanga is sorghum or corn meal porridge which is always made thick and taken with relish. The relish is comprised of meat (sometimes pounded), caterpillar known as phane and various wild game and vegetables. But these cultures of food have now shifted a bit but are more common in ceremonial occasions like weddings and funerals and also westernised foods are prepared like coleslaw, pumpkin, rice, squash etc. Power Distance: The Kalanga, like the Tswana, have chiefs who look after the tribe. Their ancestral belief is very high even if they still do practise Christianity. This is shown in their annual Dombosaha ceremonies and also in their prayers for rain. Their prayers are conducted at the hill call Domboshaba, where they believe their ancestral god Ngwale is. The word Domboshaba means Red Hill Dombo means hill and shaba means red. Bakalaka treat Domboshaba like the Islam treat Mecca, this means Domboshaba is a holly place for Bakalaka. They believe the ancestors are always watching over the living and if the ancestors become upset they are able to send sickness to the living as a sign of displeasure. According to the Kalanga tribe the spirits displeasure is revealed through illnesses, droughts and other calamities and can be appeased only through worship to Ngwale. Individualism versus Collectivism: The Kalanga tribes are still strictly using collectivism as they look after each other or their extended families. Individualism is avoided as their belief is no man is an island. They emphasise on community care which shows collectivism dimension. Uncertainty avoidance: The Kalanga tribes believe in worshipping their ancestral god called Ngwale and they also believe in pleasing Ngwale to avoid punishment. Their belief is that Ngwale is always looking at them and if he is not happy with them, he will punish them by bringing incurable diseases, droughts and other disasters. Due to these beliefs the Kalanga tribe do not want to anger Ngwale in order to avoid the situations of calamities. They also believe in consulting Ngwale go guide them or help them solve some problems for which they have no control of like when there is not enough rain durin Impact of the Technological Revolution Impact of the Technological Revolution 1 INTRODUCTION The role of technological revolution has touched every aspect of peoples lives from shopping to banking. The changes have great impact on services quality and banking activities has enabled the banks to compete in the world markets (Siam 1999-2004, 2006). The banking industry worldwide is witnessing a growing technology driven self-service by way of electronic banking (e-banking) through interacting with customers as a way of increasing productivity. The use of Information Communication Technology (ICT) helps the banks in making strategic decisions by enabling better alignment of business to build better relationship with customers. ICT has enabled banks to provide the following services: Automated Teller Machines (ATM) that have been installed at convenient places for customers to access their accounts anytime. Electronic Data Interchange (EDI) that allows different organisations to exchange transactional, financial and business information between their computer systems. Plastic Cards designed to pay for goods and services without necessarily using cash and also to withdraw cash from ATMs located worldwide. Electronic Clearing Service (ECS) is a facility that allows fund transfer from one bank to another electronically. It can be used for bulk or repetitive transfers either by institutions for dividend distribution, salary, etc. and pension, or by individuals for regular payments to utility, loan repayment, etc. Internet Banking as a channel of Electronic Banking (E-banking) allows the customer to do transactions through the banks web page in a flexible mode, i.e. at anytime and anywhere. The flexibility of E-banking is a major benefit to customers because they are able to access the banking services at the comfort of their homes or offices and no more queuing at banks. For the banking sector, E-banking is a big investment on capital and resource though the initial acquisition of relevant infrastructure, standardisation and security are expensive, especially for small banks in developing countries, but not a big problem for big banks in developed countries. These also have to follow the standard legislative and regulatory issues set within a country to protect customers rights, especially the concerning data protection. 1.1 Background of Study The role of internet has become unavoidable to business and society. Businesses and governments worldwide are always working on how to better utilise the internet in order to increase their penetration into the global market (Khan, Mahapatra Sreekumar (2009). Banking sector has seen the use of Information Technology (IT) a better way of reducing the traditional way of investing and moving along the modern technological changes in order to meet up with the global market. The growing changes in technology bring economical and social consequences on our daily life and these changes brought about the Internet. The Internet provides services like, World Wide Web (WWW), Automated Teller Machines (ATM), Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which are the core business services of E-banking. The banking sector has embarked on internet banking systems to enable their customers to access their accounts globally and in a flexible mode through their websites. Thi s move to internet banking has seen banks reducing long queues as some customers can serve themselves either through the ATMs or through the website, depending on the type of service they want to perform. Though the banking has embarked on internet banking systems, it has not totally abolished the traditional banking activities. This is to allow those customers who need face to face help to still come to banks to get help on whatever activities or services they need either because they do not trust the web or because they are unable to do not know the technology used and fear to make mistakes. Internet is used world wide for different things, some good and some malicious. This then brings in the issue of trust on the part of both the web site owners and users. Some users still prefer to go and queue in the banks because either they do not trust the web services or are unfamiliar with the systems and therefore feel uncomfortable to use e-banking. Trust should be built in order to encourage more customers to use the web site for their banking service needs. Trust can be categorised into tangible and intangible trust. Tangible trust is an implied trust that can be addressed by the use of digital certificates and SSL protocols and service level granularity. On the other hand intangible trust is something that can be formed or reinforced and is subjective, emotional and has a rational component. Trust can build or destroy the organisations reputation. 1.2 Motivation of Study There has been considerable work carried out in the field of e-banking/e-commerce trust (Smith French 2005); (Khalil 2007), however, there was a gap in their knowledge of cultural gap, especially in developing countries like Botswana. The motivation on this research is as follows: The need to show the importance of localisation of e-banking site as e-banking is a new phenomenon in Botswana. To make further studies on cultures of two ethnic groups within the same country as there have been very little research on this area. This is not the case with developed countries as the studies show that there has been localisation of e-banking to suit their target markets (Singer, Baradwaj and Avery 2007). 1.3 Aim The main aim of this research is to examine how the Tswana and Kalanga ethnic groups of Botswana culturally perceive trust on a B2C e-banking website and to design an e-banking website for each ethnic group. 1.4 Objectives The following objectives will be achieved through this study: A research will be carried out on how cultural background influences the trust and use of e-banking services. To relate the findings of the research in the design process of a web sites that suits the culture for Tswana and Kalanga ethnic groups. 1.5 Research Questions The research study aims to test the following key questions: What is the impact of culture on the contents of e-banking site? How does culture affect online trust in e-banking? Is it necessary to consider culture, trust and usability in designing e-banking website? How does Tswana and Kalanga cultural differences affect e-banking? 1.6 Methodology The research employs both primary and secondary data. Primary data will be collected through a structured survey which will be an online. The online survey will be through email where a link will be sent to the respondents in Botswana and UK. This method is chosen because it is flexible in that the respondents answer the questionnaires at their own free time and in a flexible mode of their computers. The other important thing is that it is cheaper to administer and responses are received more quickly and also that if there are any errors in the questionnaire it is easier to correct the errors. 2 E-SERVICES AND CULTURE WHAT IS THE RELATIONSHIP 2.1 E-Commerce and E-Banking The development of Information Technology and the advent of internet have enabled traditional business activities to change into Electronic Commerce (E-commerce). E-commerce is a process that allows businesses and customers (B2C) to exchange goods and services electronically anytime anywhere, and it includes banking, stocks and bonds, retail shopping, movie rentals, etc. E-Commerce has opened a global market where businesses can reach their respective customers quickly and cost effectively (Li et al 2009). For trading to be successful in this virtual world, trust must be considered vital not forgetting culture. E-commerce includes inter-organisational marketing process in which the following relationships are observed: B2B (business to business), B2C (business to consumer), and C2C (consumer to consumer). E-banking sometimes called electronic banking or internet banking is a system that allows people to conduct transactions and manage their accounts without necessarily going to the brick and mortar banks. For customers using internet banking to access their account, they need to have personal accounts at the respective banks websites. For e-banking to be effective, banks should invest on IT infrastructure like Hardware, Software, Networking which include connection to the internet. Automated Teller Machines (ATM) and personal computers have reduced the cost in favour of banks on paper work and labour force since customers use self services offered by banks. However, it should be noted that there are still some people who would want to be served by bank officials either because he/she does not know how to operate the banks system, does not trust it or want face-to-face interaction with bank officials. 2.1.1 Benefits of E-Banking Electronic banking or online banking is the most popular means of e-commerce for millions people worldwide. Most banking products and services are now offered over the Internet. Banks have invested in robust information technology practices and secure-transaction technologies that have made electronic banking trustworthy. This has also created some benefits on e-banking as follows: Convenience and flexibility as the customer is able to pay bills, shop and transfer money from anywhere at any time suitable to the customer as long as the customer has access to a personal computer and internet connectivity. There is no strictness of business hours as the services are available 24 hours every day unlike in the traditional brick and mortar where a customer has to observe working hours. Customers are able to manage their customers as they are able to access their accounts and therefore can cross check their accounts anytime. To the customer the only cost associated with e-banking is the cost of the time spent online which is usually charged by the internet provider. There is also time and money saving as customers do not have to travel distances to their respective banks unless on crucial issues. 2.1.2 Limitations of E-Banking As well as electronic banking have advantages there are some limitations too. Below are some limitations on electronic banking. Some bank websites have too much information that confuses the customers and the customer may feel it is a waste of time as he/she does not get the information that he/she wants and may never bother to visit the website again. The financial needs of the customer may not be quickly be predicted and therefore will take some time to be solved, which is an inconvenience to the customer. Hacking and identity theft are on the rise this calls for a certain amount of trust placed on the banks by electronic banking customers. The system should be able to stand against hacking. There is no Face-to-face interaction in electronic banking and some customers still need this type of service that are observed in a traditional bank to quickly solve or answer customers queries. In case of internet failure the customer is unable to withdraw money from his/her account and unable to even use the ATMs or credit/debit cards. Some banks charge for ATM usage by non-customers, therefore if a customer stays where there is not ATM for his/her bank, then he/she will be charged to using the facility of another bank. 2.1.3 Security and Trust Security issues are a major concern for everybody using internet whether for banking purposes or not. There is an increase of security risks in the banking sector as their systems are exposed to risky environments. Confidentiality, integrity, privacy and availability are the core areas of security that banks and financial institutions must address (Jide Awe 2006). This calls for banks and financial services authority to plan ahead in monitoring and managing the security threats. The security threats are classified in three categories; breaches with serious threats (e.g. fraud), breaches caused by casual hackers (e.g. web sites defacement or services denial (e.g. causes of web sites to crash) and flaws in systems design (e.g. genuine users able to see or use another users accounts). These threats cause serious financial, legal and reputational implications to the banks affected. Banks and financial institutions need to put in place security measures to respond to these threats. The security measures need constant update in order for them to cope with the ever increasing and advanced threats. The banks should also have sufficient staff who have security expertise in order to keep on checking and updating the banks systems. These threats bring in customers lack of trust on the electronic banking that is why some customers prefer to queue at banks to get services that they would have otherwise done through the internet. Trust should be built in order to encourage more customers to use the web site for their banking service needs. McKnight, Cummings and Chervany (1998) define trust as an individuals beliefs about the extent to which a target is likely to behave in a way that is benevolent, competent, honest, or predictable in a situation. Trust can be categorised into tangible and intangible trust. Tangible trust is an implied trust that can be addressed by the use of digital certificates and SSL protocols and service level granularity. On the other hand intangible trust is something that can be formed or reinforced and is subjective, emotional and has a rational component. Trust can build or destroy the organisations reputation. Trust is very important and should be the critical area for each bank to consider because if customers do not trust a bank then the bank will be out of business. Trust on e-banking is crucial because it can make the banks to lose money and popularity if hackers are able to access customers accounts. It can be ensured by putting stringent measures on the banks systems and including in its website the symbols/signs and text that will make the customer aware of the security of the website. Some researchers believe that in electronic cyber consumer trust is more important than in traditional transactions (Kim, Ferrin and Rao 2007). There are signs and symbols that are used in the website that indicate to the customer that the site is trustworthy. These trustworthy signs may be explicit and some implicit (French, Liu Springett 2007). 2.1.4 Cultural Models The world is comprised of people with different cultural backgrounds which justifies their behavioural variation. This variation usually shows the different cultures and values of these people. Culture is something that identifies and differentiates one person from another and it is something that is not inherited or from genes but it is learned. The environment in which a person grows usually determines the persons culture because he/she learns the language, the norms and values of the people with which he/she lives. Hofstede (1991) defines culture as the collection of human mind that distinguish the members of one human group or category of people from those of others. The manifestation of cultural differences is formed through a combination of four characteristics: symbols, heroes, rituals, and values. Rituals are sacred things that must be carried out within a cultural environment. Values are cultural things that are mentally stored as one grows up within the cultural environment. Symbols are things like language, pictures/objects and gestures that depicts meaning understood within the same cultural group. Heroes are people respected and considered to be role models within a cultural environment, however, this changes as the child graduate into adulthood. Cultural differences across the world vary according to ethnic groups and also across geographic boundaries. 2.1.5 Hofstedes Cultural Dimensions Hofstede (1984, 1991) identified the following five cultural dimensions which could be used to compare and measure cultural differences. 2.1.5.1 Power Distance Index Power is not distributed equally among the society. This is indicated by some people having more power than others, eg. some people are born kings, chiefs already having that status even at the very early age as toddlers. These people will be respected from that very early age even in way they are addressed. However, the power distance can be measured differently depending on the difference in society. There are those that are termed as large power distance culture where the subordinates do as told and the superior gives instructions and is the only one who decides what is good for the society or organisation. On the other hand there are those that are termed low power distance where there is consultation between the superior and the subordinates. In this category the superior respects the subordinates and entrust them with important assignments believing that they will be successfully completed. 2.1.5.2 Individualism versus Collectivism In individualism can be classified as nuclear family where each individual act independently, making his/her own choices and decisions. As a member of the nuclear family, the individual has to take care of himself/herself and his/her immediate families. On the other hand collectivism can be classified as patrilineal or matrilineal where people, after being integrated into the society at birth, are looked after by extended families. 2.1.5.3 Masculine versus Femininity Division of roles depend on gender, Men must provide for their families and female must take care of the children and the whole family. The assertiveness of men creates dominance over female on economic life within the family irrespective of whether it is an extended or nuclear family. However, in developed countries there are some variations on gender role pattern that enable females to enrol in courses that were initially designed for men and therefore do jobs that were done by men. In some underdeveloped or developing countries where the gender role pattern still exists, women are barred from doing jobs that are considered to be designed for men and women are also barred from enrolling on courses that are designed for men. This gender role pattern is still strictly followed in some underdeveloped countries where men are said to be head of families and thus gives the men all authority over everything that goes on in the family. Woman in such families do not have any say, they are t old what to do, how and when by their husbands and they are not supposed to question the instructions from men. 2.1.5.4 Uncertainty Avoidance Index (UAI) Most people fear uncertain situations because they cannot predict what might happen in the near future. To minimise this, organisations or societies engage strict laws and rules, safety and security measures, and religious and cultural beliefs to protect their organisations or societies. However, avoidance of uncertainty varies according to cultural differences. In high power distance culture, the boss is the only one to make decisions and the subordinates must strictly follow the bosss instructions. Subordinates expect the supervisors to tell them what to do because they regard each other as unequal. In organisations, this is also indicated by the wide salary gap whereas in societies it is indicated by the prestige given to superiors (e.g. chiefs) by their subordinates (e.g. tribes). In low power distance culture there is respect by supervisors over their subordinates. The supervisors entrust subordinates with important assignments trusting that the work will be done efficiently and if there is something wrong the supervisor will not put the blame on the subordinates, but rather takes it upon himself. The society believes people are equal irrespective of their education, religion or wealth. There is more democracy as subordinates views are sought and taken into consideration when making decisions. 2.1.5.5 Long-Term Orientation versus Short-Term Orientation The long-term orientation versus short-term orientation is a model which came a after Hofstede was convinced by Michael Bond who called this dimension the Confucian dynamism. Values of long-term orientation are more oriented towards future e.g. perseverance and thrift while on the short-term the values are more oriented towards past and present and therefore more static e.g. respect for tradition and reciprocation of greetings, favours and gifts, personal steadiness and stability. 2.1.6 Trompenaars, Hall and Other Cultural Models There are several cultural models most of which overlap into Hofstedes models (Kluckhohn; Trompenaars 2000). Trompenaars developed the below models: 2.1.6.1 Universalism versus Particularism This can be viewed as authority versus consultation. In authority the one who has authority gives instructions and makes decision without the involvement of others whereas in consultation other peoples views are taken into consideration when making decisions. 2.1.6.2 Individualism versus Communicationism Where there is balance between individuals and groups needs. 2.1.6.3 Specific versus Diffuse Relationships Here the business is done on an abstract relationship (contract) or on good personal relationship in order to bring in liking and trust. 2.1.6.4 Neutral versus Affective Communication Styles In this dimension people hide and hold on to their emotions or they show them up in which case they expect some emotional response. 2.1.6.5 Time Orientation Monochromic culture focuses more on performing the task promptly meeting the original plan and prefers to do one task at a time. Polychronic culture tends to e multi-tasking, doing different things at the same time, and emphasis is more on relationship than on tasks. 2.1.7 Halls Cultural Models Hall (1976, 1983) developed the three cultural dimensions in which he describe how people behave. Following are his Cultural Models: 2.1.7.1 Context High Context People are helped by many contextual elements to understand the rules and it is a problem for those who do not understand unwritten rules. Low Context More explanation on rules is done as things are not taken for granted and therefore there is less chance of misunderstanding. 2.1.7.2 Time Monochronic Time is where one thing is done at a time and the concern is achieving the task on schedule. Polychronic Time is where several things are done at the same time (multi-tasking) and here the concern is on relationship and not schedule. 2.1.7.3 Space High Territorial Some people have greater concern for ownership and try to mark their territorial boundaries whether at home, parking space and even in shared offices. Low Territorial People here are not much concerned with ownership of space and for them it less important Hofstede, Trompenaars and Hall did extensive research that enabled them to conduct rankings on countries cultural differences. Hofstede conducted his research on 50 countries whilst Trompenaars conducted his on between 19 and 52 countries though with fewer rankings. Although it does not clearly show whether Hall did any rankings but he did a comparison of cultural dimensions among the French, Americans and Germans. 2.1.8 Tswana Culture Households in the Tswana polities usually take the form of three residential sites: one household in the village, one at agricultural holdings outside the village but not very far from the village (where ploughing takes place) and the last a cattlepost (with kraals for keeping livestock owned by the family). †¢ Power Distance: Tswana tribes greatly respect their elders which is shown especially when the younger ones greet the elders. In Botswana greetings are used to judge somebodys behaviour and greetings are conducted in a certain manner. When greeting an elder, a younger has to stop a bit to show respect and if the younger person is a male wearing a hat, he has to take it off to show respect to the elder. A man also has to take off his hat when getting inside the house as a custom unless the man is a widower. Each Tswana tribe or ethnic group has a Chief (Kgosi) who is helped by paternal uncles and Headmen. The paternal uncles are by virtue of close relationship to the Chief advisors as they are considered to have the royal blood. Kgosis traditional court is called Kgotla, and it is the main customary court within the village where disputes or misunderstandings that could not be solved by Headmen are solved. The Chiefs Kgotla also acts as the Traditional Court of Appeal within th e village, where people who are not satisfied with the Headmens rulings can appeal. Chieftainship is inherited, so for a person to be a chief he/she has to be born from the royal family and not somebody chosen. Most of the Tswana people are Christians as Christianity was brought in Botswana as early as 1845 by a Scotsman named Dr. David Livingstone. The first Christian to be baptized by Dr Livingstone was Chief Sechele of the Bakwena and this was a good sign towards improvement in peoples way of living. For a chief to be a Christian it was easier to convince other chiefs and the people to become Christians. Christianity also contributed a lot to Tswana culture as it reduced the bureaucratic principles where only one person would make decisions for the whole family or tribe and nowadays consultation is the norm. †¢ Individualism versus Collectivism: Collectivism is the norm with the Tswana Culture where somebody has to take care of his/her family and also the extended family like uncles, grandparents, aunts, nephews and nieces. In the olden days class differentiation was very low and mostly invisible because traditionally those who had more cattle would help those who had none by distributing the cattle to those households for management. This helped the families because they would use the cattle to plough with and user their milk to feed their own family. This management of cattle also resulted in people being paid by one cow every six months or every year depending on the agreement between the owner of the cattle and the person taking care of the cattle. However, some people do not want to take the responsibilities of extended families and that is why there are organisations like SOS and other orphanage organisations to take care of orphans and also the government is giving out food r ations on monthly basis to orphans, elderly people and families considered to be very poor. †¢ Masculinity versus femininity: In the traditional Tswana setup masculinity is the norm, roles are distinguished according to gender, and this is clearly visible in traditional ceremonies where men are the only ones to sit on chairs and women sit on mats and also that in meetings men are to speak first and women are to confirm what the men have said. Men were considered heads of the families and therefore their decisions were final and unquestionable. But since the Beijing Declaration and Platform for Action at the Fourth World Conference on Women in 1995 (United Nations World-Wide Web page 1995) and the government of Botswanas emphasis on equality, some jobs/tasks which were considered to be for males only are now considered unisex. At present there are some women chiefs in some Tswana tribes which traditionally the chieftainship was considered to be for men, even if the chief would die only having daughters that meant chieftainship would be given to one of the partenal uncle s or his elder son. By this the chiefs family would have lost the chieftainship inheritance. †¢ Uncertainty avoidance: Tswana ethnic group used to believe in ancestors and most of them liked to consult traditional healers for different illnesses and protection against evil spirits. Since the introduction of Christian religion through Dr David Livingstone in 1843, most people no longer believe in traditional healing. The staple food for Tswana is sorghum or corn meal porridge which is made thinner for breakfast and thicker for lunch and supper eaten with some relish which may be chicken, meat from goat, sheep or cattle (sometimes pounded), caterpillar known as phane and various wild game and vegetables. But these cultures of food have now shifted a bit but are more common in ceremonial occasions like weddings and funerals and also westernised foods are prepared like coleslaw, pumpkin, squash, rice, etc. †¢ Long-term versus Short: Tswana culture used to allow children to go to school only to learn how to read and write. Most female teenagers were taken out of school to go and be married to elderly men as an arranged marriage between the parents without the agreement of the female teenager, but now people find their own partners and marry when they feel they are ready and not pushed. 2.1.9 Kalanga Culture Kalanga tribe is found in the north eastern part of Botswana and some in Zimbabwe, only separated by the border. The Kalanga tribe in Botswana, who are still withholding their culture, are mostly found in different villages within the north east side of Botswana. The Kalanga Language was taught in primary schools until 1972, six years after Botswana gained its independence from the British, and now the Kalanga tribe believe that since the discontinued teaching of Kalanga Language in primary schools their culture has been jeopardised. The staple food for Kalanga is sorghum or corn meal porridge which is always made thick and taken with relish. The relish is comprised of meat (sometimes pounded), caterpillar known as phane and various wild game and vegetables. But these cultures of food have now shifted a bit but are more common in ceremonial occasions like weddings and funerals and also westernised foods are prepared like coleslaw, pumpkin, rice, squash etc. Power Distance: The Kalanga, like the Tswana, have chiefs who look after the tribe. Their ancestral belief is very high even if they still do practise Christianity. This is shown in their annual Dombosaha ceremonies and also in their prayers for rain. Their prayers are conducted at the hill call Domboshaba, where they believe their ancestral god Ngwale is. The word Domboshaba means Red Hill Dombo means hill and shaba means red. Bakalaka treat Domboshaba like the Islam treat Mecca, this means Domboshaba is a holly place for Bakalaka. They believe the ancestors are always watching over the living and if the ancestors become upset they are able to send sickness to the living as a sign of displeasure. According to the Kalanga tribe the spirits displeasure is revealed through illnesses, droughts and other calamities and can be appeased only through worship to Ngwale. Individualism versus Collectivism: The Kalanga tribes are still strictly using collectivism as they look after each other or their extended families. Individualism is avoided as their belief is no man is an island. They emphasise on community care which shows collectivism dimension. Uncertainty avoidance: The Kalanga tribes believe in worshipping their ancestral god called Ngwale and they also believe in pleasing Ngwale to avoid punishment. Their belief is that Ngwale is always looking at them and if he is not happy with them, he will punish them by bringing incurable diseases, droughts and other disasters. Due to these beliefs the Kalanga tribe do not want to anger Ngwale in order to avoid the situations of calamities. They also believe in consulting Ngwale go guide them or help them solve some problems for which they have no control of like when there is not enough rain durin

The background and role of inventory in accounting

The background and role of inventory in accounting Introduction International accounting standard No.2 (IAS2) Inventory gives the rules which should be followed during the recording and presentation of inventory. Inventory refers to goods which are held by a firm for sale, are in the production process or are materials which will be consumed in the production process or in giving out of services. This standard does not apply to financial instruments and it gives out a guideline on how to measure an asset which is categorized as an inventory, which concept constitute of the cost and at what time an expense occurs and the information that should be disclosed while preparing the financial statements (International Accounting Standards Board, 2008, p.977). History In the year 1974 during the draft of standard, the name was changed to inventories from valuation and presentation of Inventories in the Context of the Historical Cost System the first draft was affected on 1st of January in the year 1995 and this was 21 years after the first draft exposure. On 18th of December 2003, the standard was revised and took effect as from the strart of January 2005. In the year 2003, there was a revised IAS 2 whereby different cost formulas for inventories were incorporated into the standard. These were superseded from SIC 1 on consistency. On December 1997, SIC 1 was issued and was effective as from 1st January 1999. sic 1 required that that the same cost formula was to be used for inventories with the same characteristics under IAS 2.21 AND IAS 2.23. in that case, different methods may be used where inventory items were different from other groups (International Accounting Standards Board, 2008, p.978). SIC stands for Standing International Committee (SIC), and it was renamed to International Financial Reporting Issues Committee (IFRIC). some of the issues in SIC were not added in IFRICs Agenda. This are as follows: IAS 2 Cash Discounts The question was whether cash discounts received should be subtracted from the cost of goods purchased. A decision was made in august of the year t 2002 that they should not be added. The reason given by IFRIC was that paragraph 8 of IAS 2 provided enough guidance and thus it was not necessary to publish on the interpretation on the issue. IAS 2 Consumption of inventories by service organizations The problem was on how to treat net realizable value when the inventory is consumed as part of the service rendered. A decision was made in the march of 2004 that it should not be added. It was noted that it existed for commercial bodies. It was thus concluded that the matter involved the recoverability of an asset which did not have a direct cash flow. IAS 2 Discounts and rebates In this part, three questions were considered, first, should the discount received for prompt payment of invoice be reduced from the cost of the inventories or seen as financing income? Second, should all other rebates be reduced from the cost of inventories or treat some of them as revenue or reduction in promotional expenses, lastly, if volume rebates should be given a recognition only when threshold volumes are achieved. The decision arrived at on November 2004 was not to add. Objective of IAS 2 IAS 2 has the objective of of prescribing how inventories should be treated in accounting. It provides a guideline on how to look for the cost of inventories and how to recognize an expense including any depreciation to net realizable value. It provides the formulas that should be used to assign costs to inventories. The conclusion is that, inventories should be measured at the lower between net realizable value and cost (Nikolai, Bazley, And Jones, 2009, p.80). Net realizable value refers to the estimated selling price in the course of normal business less the costs estimate for completing and the estimated costs required to finish the selling activity. The cost of inventory on the other hand shall comprise of all the costs of purchase, conversion in addition to other costs which are incurred in making the conditions to be in their present condition and into their present location. The standards require that the first in first out method is used in assigning the cost of inventories or the weighted average method. The same cost formula should be used by a firm for all similar stock and stock that has the same use to the firm. Where the inventories might have different use or are of different nature, different cost formulas can be used (Nikolai, Bazley, And Jones, 2009, p.80). Where inventory is sold, the expenses incurred during the sale of the inventory shall be seen as an expense in that period when the expense occurred. Amount realized from any reversal of a write-down in inventories coming up from a rise in net realizable value shall be treated as a reduction in amount of inventories recognized as an expense in the time or period when that reversal took place. Rationale The rationale for IAS 2 is to ensure that accounting for inventories is done in a manner which leads to the representation of the true value of the available inventory. It ensures that frequent research is done on how to present inventory in the financial statements. Measurement, presentation and disclosure details There are several items which need to be disclosed in the financial statements concerning inventory. One of the items that need to be disclosed includes the accounting policies that were adopted while giving value to the inventories. This includes the formula used to value the stock. In other words, the financial report should state whether first-in, first-out method was used or weighted average method was used. Secondly, the reports should show the total carrying amount for the inventories and they should be put into a classification which the entity feels fit. Thirdly, the carrying amount for the inventories that may be accounted for basing on their reasonable value minus the sale costs should also be clearly shown by the financial statement. The fourth thing that should be disclosed is the level of inventories recognized as an expense in that certain period. Following this, the level of inventory write-downs which might have been seen as an expense in the financial period should be shown. After this, the level of reversals for the previous value write-downs which may have been achieved as a reduction in the amount of the expense on account of the periods inventories. The activities which led to reversal should also be listed and finally, the carrying amount of inventories used as security for debt payment should also be shown (Barry and Eva, 2008, p.27). Comparison with US GAAP (inventory) As mentioned, IAS is an initioal for International Accounting Standards and it represents a set of accounting standards which are set by the international Accounting standards committee (IASC) which is in London, England. IASC has several bodies with the main one being the international Accounting Standards Board (IASB). IASB is responsible for setting standards for IASC. On the other hand, GAAP is an acronomy for Generally Accepted Accounting Principles. IASC is not responsible for setting GAAP and it thus does not have any legal authority over it. IASC can be thus be seen as an influential body which makes accounting rules. Many people listen to what IASB and IASC say on accounting matters (Barry, Nach, and Bragg, 2009, p.1337). When an accounting rule is set by IASB, several countries consider the rule and adopt it into its accounting system. The rules thus will eventually influence of what each country adopts as its GAAP. To understand what GAAP is better, we can say that it is a set of rules which accountants follow in their countries as each country has its own GAAP. There are however not much differences in GAAP between countries although their interpretations may vary between different countries. In the United States, there is the Financial Accounting Standards Board (FASB), and this make up the rules which eventually become GAAP for the country. Example from annual reports An example of an annual report which shows the usage of IAS 2 inventory is shown in the appendix. The report shows the consolidated financial statements for Prestige Brands Holdings, Inc. which is a distributor and marketer of brand name through the counter drug, personal and household products which are sold through Canada, U.S. and other international markets. Discussion In the consolidated financial statements for the mentioned company, the first requirement for the IAS 2 has been met whereby the accounting policy that was used has been mentioned The reports states that the inventories have been stated at the lower of between the fair value and cost. The report has gone further to mention that the first-in, first-out method was used in valuing the inventory. The reports have explained that the company provides allowance for the goods which are slow moving and inventory which has become obsolete through the reduction of inventory for fall in value due to the obsolescence of products, damage and any other issues which might be affecting the marketability, equal to the difference that might exists between the cost of the inventory and its market value. Another thing that the report discloses is the factors which have been utilized in the determination of estimated market value and they include; current sales data and historical return rates, the estimates for demand in future, the competitive pricing pressures, introduction of new production, expiration dates of products and obsolescence of components and packaging.