Airbnb Marketing Strategy Essay

INTRODUCTION Airbnb, founded during the economic downturn of 2008, is one of many innovative businesses operating within the growing shared economy. Airbnb offers an alternative to the traditional hotel business and allows property owners, termed â€Å"hosts,† to advertise and rent their extra space, be it a spare room, apartment or treehouse. â€Å"Guests† search through the Airbnb website, read reviews and connect with hosts to find less conventional and, often more, affordable lodging. Key to Airbnb’s business success is establishing a framework of trust on which both hosts and guests can rely, a system Airbnb has developed through a strong marketing strategy and through specific practices that support host and guest throughout the rental process. Building this framework of trust in the system is a focus not just for Airbnb, but is also typical of a company operating in the new sharing economy. WHAT IS THE SHARING ECONOMY? The sharing economy is a new economic opportunity for customers to access goods whenever they are required at that moment – with access trumping ownership. For example, if a person only uses a car once a month, they could rent a car from a sharing economy company like ZipCar instead of paying a monthly car payment for a car they barely use. Following the economic recession, many Americans have become less wasteful in using their economic resources. In addition, more Americans are expressing an interest in being more socially conscious of green initiatives and other social responsibilities (Neilson). These trends have resulted in a new focus on shared resources. Beyond just the economic benefits, goodwill and community building are important drivers of the sharing economy. Today, people who feel the burden of the current economic period may prefer to rent or sell to their peers instead of giving their business to major corporations. Furthermore, the Consumer-to-Consumer (C2C) business model is allowing many individuals to exploit their own resources to gain additional income without the high startup costs and long-term commitment for business sustainability. Although the idea of sharing is an old idea, the ability for sharing to generate profit is relatively new. The sharing economy is greatly influenced by online commerce and social media. Online commerce has made it easier for  peers to share their goods and services with one another using trusted financing services through websites such as PayPal. Social media has helped spread the economic and personal benefits of the sharing economy and has served as the fundamental marketing tool for the growth of countless collaborative consumption companies. Companies functioning primarily in the sharing economy consistently urge their users to share their experiences via Facebook, Twitter and other social networks. These social platforms have become so integrated in w eb transactions that once a customer has confirmed or paid, they are prompted to immediately post their money-saving or moneymaking success directly to their social media page of choice. Also referred to as collaborative consumption, the social economy follows the idea that people will first use what they have, borrow, swap, make and thrift items before they actually buy something brand new (Anderson). The marketers of these sharing economy companies primarily target a few segments but are constantly expanding. Urban areas and members of the X and Y Generations are key demographics for the sharing economy. Demographically, the majority of sharing economy companies will target Generation Y due to their concern for environmental and social issues that influence their decision to save and reuse resources (Kotler, Philip, and Kevin Lane Keller, Chapter 8). Statistics show that the newest generation of adults buys fewer houses and fewer cars than its predecessors (Ciccone). Furthermore, Generation Y is attracted to unconventional practices such as the sharing economy and is highly social, able to spread the word. Generation X is more likely to be those who are renting out their goods and services. As Generation X has more responsibilities, they enjoy the extra income that helps them finance their obligations, such as children and paying a mortgage. People are collaborating informally in their communities out of both necessity and as a lifestyle choice. A sharing economy company should concentrate on branding, networking and experience to ensure its success (Olson). Branding is key because sharing economy companies want consumers to have confidence in their brand. The sharing economy is at an advantage, being relatively new with a market that is interconnected through online commerce and social media. Outside of spreading the work, a sense of community is built within the network. Finally, a sharing economy company has to concentrate on customer experience. Customers are looking for ease of  use and product value. When these desires are met, consumers will return to use the service as well as recommend it to others. One very successful example of a company with the sharing economy employing these factors is Airbnb, who in less than a decade has built a major competitor to the centuries old hotel industry. WHAT IS AIRBNB? Brian Chesky and Joe Gebbia founded Airbnb in San Francisco, when they began renting out airbeds in their apartment to people attending a local conference to generate additional income in 2008. The early business model for Airbedandbreakfast.com, later renamed Airbnb, focused on large conferences such as the Democratic and Republican Conventions, which created bustling business in the 2008 election year. In 2009 the founders, now including Gebbia’s former roommate and tech wiz Nathan Blecharczyk, received $600,000 in seed funding from Sequoia Capital. In that same year, acknowledging that renting to complete strangers made many people uncomfortable, Chesky and Gebbia flew to New York City, home to many of their users, to meet with hosts in person and survey for potential improvements. This was an unusual strategy for an internet company but it later proved to be profitable. Over the next two years, Airbnb made several key strategic changes that gave it direction and force in the marketplace. Of particular note was the establishment of Airbnb’s broker’s payment model and the decision to bring in professionals to photograph host homes. By the end of 2011, Airbnb had gone international and reached critical mass (Geron). Forbes estimates that Airbnb likely lost money in 2012 in favor of accelerating growth, a hit the company could withstand due to the influx of capital from various Silicon Valley venture capital firms (Geron). Their market penetration is comparatively strong, according to Tech Crunch, with Airbnb’s booking expected to have surpassed that of Hilton in 2012 (Empson), and hosts renting to an estimated 2.5 million people according to the Economist (â€Å"All eyes on the sharing economy†). The Wall Street Journal valued Airbnb at $2.5 billion in October 2012, and Privco projected their revenues for that year to be at $180 million (Melby). In exchange for customer support, website maintenance and various insurance and security features, Airbnb employs a broker-style payment model, taking a portion of  the rental price between 6% and 12% from the guest, depending on the property price, and a 3% service fee from the host (Geron). Airbnb has come into its own financially, while still maintaining an identity that, though not especially anti-corporate, is certainly fresh, young and innovative. From the company logo, with its big, curly lettering and informal design, to its emphasis on direct interaction with potential users, Airbnb has built its brand for the generation inspired by innovation. The motto â€Å"travel like a human† emphasizes the difference between the traditional, impersonal, corporate travel experience and the opportunity Airbnb presents to users to build their personal networks with hosts in far off places, at a lower cost. As is perhaps to be expected with an internet company, Airbnb relies heavily on social media to create and perpetuate its brand identity. A key aspect of the company brand is the travel experience. They post a â€Å"traveler of the week† on their Facebook, Twitter and Google Plus pages, and recently concluded a photo contest using Instagram, with Airbnb travel credits as the prize. While the choice of prize may be a bit opportunistic, the interactive concept to use the mainstream photo-sharing app, and the reward both fit well with the Airbnb brand and kept the focus on travel rather than profit motive. Naturally, travelers’ blog posts that mention Airbnb, whether they focus on the company or simply mention it in p assing, are often promoted through â€Å"re-tweets† and posts on the Airbnb blog. The experience of travel is only one facet of a company identity that is as carefully well-rounded and appealing as its users. Airbnb also emphasizes its interest in the popular local movement with its â€Å"Living Local† shows, a part of its â€Å"AirTV† series. Each online episode features a tour of a unique Airbnb host property, and interviews with the generally personable host or hosts. Beyond that, Airbnb is aware of the appeal of its unique and tech-centric business model to engineering and tech nerds. The company provides content catering directly to this audience through its specific engineering blog – nerds.Airbnb.com – and its Tech Talk YouTube series, where young tech enthusiasts present on innovative new technologies and how they can and are being harnessed to build businesses (YouTube). These videos, generally around an hour in length, provide an in-depth review of current technological and business innovations. Airbnb also uses social media to associate itself with other organizations, not unlike cross branding, which  establishes Airbnb as culturally present and economically innovative while also eliminating the costs of a major advertising campaign. Their Facebook page, for example, lists SXSW, TED, Virgin America, Lonely Planet and Business Punk as organizations that Airbnb â€Å"Likes.† Each of these associations strengthens their brand – Virgin America connects them to another untraditional travel company and to Virgin’s maverick CEO, Richard Branson, whose appeal to young professionals has made him by far the most followed â€Å"Influencer† on professional social media site LinkedIn (â€Å"LinkedIn Today: Top minds, big ideas†). Similarly, their public association with SXSW reveals a cultural affinity in line with that of their clientele, and functions in tandem with the demand for lodging during the festival, to which Airbnb has dedicated a specific section of their site. Through these efforts, the company has branded itself as young, innovative and culturally and technically savvy—all traits that exist outside of its travel-focused revenue stream, but which are inherently appealing to the clientele, both hosts and guests, on which Airbnb relies. AIRBNB FOR GUESTS Airbnb’s business model focuses on consumer-to-consumer (C2C) transactions based on trust. Its model is similar to the popular C2C marketplace of eBay where buyers and sellers engage in transactions that are each evaluated by individuals for their level of risk on the basis of detailed profiles, history, product, price and other resources. However for Airbnb, the relative level of investment for guests and hosts is significantly higher on a per transaction basis. Travelers are risking their vacation experience, safety and in most cases, a relatively higher dollar value than a single product purchase. Hosts are offering their homes, their personal privacy and their own safety, as well as their living experience for the time that their place is secured by a guest. With these personal investments in mind, the success of Airbnb’s ability to instill confidence, trust and safety throughout their network was critical to the success of the company. Airbnb’s roadmap to build safety and security for their renters includes a private messaging system that allows users to learn about each other prior to booking while holding private information to be disclosed at a later time. Another system is Airbnb’s â€Å"verified ID† badge where users will  register their social networks such as LinkedIn, Facebook, Airbnb reviews and official documentation from their photo ID and/or passport. With the verification of all of these resources matching up, those users will receive a â€Å"Verified ID† badge with their account information demonstrating to other users that their identification has been vetted. In April of 2013, Airbnb began randomly selecting users to complete this profile and expect to have this expanded worldwide for all Airbnb members in the near future. Over the last two years, Airbnb has made efforts to increase their resources to expand security and sustain the trust in the marketplace by doubling the size of their customer support staff with 24Ãâ€"7 support, creating a dedicated Trust & Safety department and designing tools to verify user profiles and facilitating richer communications between guests and hosts prior to booking. With these basic features, the usability, consistency and accessibility to hosts and the Airbnb support team continue to be critical characteristics to Airbnb’s service roadmap. Although, when travelers are â€Å"shopping† they also have the responsibility of maximizing their use of these tools and take care in evaluating their own transaction risk by perusing host profiles, reviews, social networks and even connecting with their host on a regular basis. AIRBNB FOR HOSTS Hosts are just as much Airbnb’s customers as guests so while they must inspire guests to stay in an individual’s residence, Airbnb must simultaneously inspire trust and confidence in the Airbnb model for hosts. Airbnb’s actions and interactions with hosts and potential hosts are meant to project an image of control, confidence and community for the host, with a particular focus on doing so administratively, financially and socially. To simplify and centralize the hosting process, Airbnb manages all the administrative functions of becoming a host, which provides a support system and protection for the host and his or her property. Rather than having hosts build a new website for their rental, the site is already created (in multiple languages and currencies) and all he or she must do to get started is create a profile. Airbnb has a free customer service team to help first-time hosts understand the process. While Airbnb makes it clear on their website that understa nding tax and legal status for hosts is the  responsibility of the host, Airbnb provides reference documents and answers to common questions on their website. Although Airbnb maintains the site architecture, hosts are in complete control over the rental price, amenities and house rules. Airbnb in some cases will even offer free professional photography for host properties. A secure online payment system is built into the website to guarantee complete, on-time payment directly to the host (â€Å"Why Host†). Hosts are essentially allowing a stranger into their home (or boat, treehouse, etc.) so a sense of control is key for their confidence in this model. To do so, Airbnb creates systems to offer protection to hosts’ persons and property. Hosts have total control over who rents their listing. A potential guest puts in a reservation request through the online system and then the host has 24 hours to accept or decline the request. During this time the host and potential guest can communicate through the website communications system and reference the aforementioned â€Å"verified ID† system. However, the rental address is not given out until the owner accepts the guest and hosts also have access to the 24-hour customer service hotline (â€Å"Trust†). Since most hosts are renting primary residences or rooms, protecting against potential damage is much more important than if this was a hotel or business. While normal renters’ or homeowners’ insurance is the responsibility of the host, in 2011 Airbnb launched its â€Å"Host Guarantee† property protection program. In May 2012, it took insurance underwritten by Lloyd’s of London to extend the Host Guarantee to up to $1 million in property damages. This covers guest damages beyond the scope of â€Å"reasonable wear and tear† in 23 countries. No additional cost or actions are required for the host to have this protection (â€Å"Guarantee†). The financial incentive is a key reason people become hosts. In a survey of members of Airbnb in San Francisco in November 2012, over 90% of hosts rented their primary residences to visitors and spent almost half the income they made on living expenses (Lawler). To encourage more people to become hosts and to support existing hosts, Airbnb also focuses on facilitating the financial aspects of renting. Firstly, it is free to create a listing using Airbnb. For online payments, the guest submits payment and once the reservation is accepted Airbnb processes and collects the payment in full. Airbnb holds the payment until 24 hours after check-in (and after the guest-host walk through). This helps uphold host cancellation policies and provides a neutral third-party  for financial exchange. The Airbnb website also facilitates cleaning fees which are held until the property is vacated. The secure payment of fees and usage is a key way Airbnb builds confidence for hosts in addition to the social and cultural aspects of hosting. While the first reason most hosts decide to rent their space is financial, another reason is a desire to meet new people, show off their city and be part of the shared economy. Airbnb allows hosts to rent out primary and secondary residences, but 50% of hosts rent private rooms in their residence while they are there (â€Å"Life†). On the Airbnb site, there are numerous forums and guides for people to learn about becoming a host, exchange ideas and form a deeper community within the sharing economy. The social community built in Airbnb, plus the financial and administrative support systems, encourage new and repeat hosts to open their homes and lives up to the world because they trust in the brand and system created by Airbnb. NEXT STEPS Airbnb’s success did not come without the expected growing pains of any startup company, and especially one commanding a dominant market share in the new sharing economy. While its impact on the tourist trade, individual income, revenue to small businesses and economic stimulation are remarkable, the personal price some individuals have had to pay using Airbnb’s service is important not to overlook. From city-issued sanctions to individuals violating lease regulations, to vandalism of personal property and identity theft, the safety, benefits, opportunity costs, and sustainability of Airbnb’s service has been questioned in the media. To alleviate some of these concerns and remain a viable business, Airbnb should examine these obstacles in an effort to institute awareness through its community. They can continue to find ways to provide a more comprehensive and scrutinized ID verification process for all of their users to minimize the existence of bad apples. The level of care that hosts place on evaluating their individual transaction risk and understanding of regulations specific to their city has a direct impact on their safety and success as an Airbnb host. Through consumer forums, hosts, guests, and potential consumers and guests can communicate on a network to learn from their peers. Airbnb should also consider expanding the countries covered and the items covered under the  Ã¢â‚¬Å"Host Guarantee† to increase host protections locally and internationally. Moving forward, Airbnb has to be conscious of the popular pitfalls fellow sharing economy companies have faced. In a Campbell Mithun study, consumers were concerned with the following, in descending order: What I lend could get lost or stolen, I might not trust others in the network, my privacy might be compromised, sharing is not worth the effort, and the goods or services might be of poor quality (Olson). As described above, Airbnb has taken necessary measures to help defe nd the safety and privacy of its host and guests. However, as the sharing economy evolves, this could get more difficult and new safety concerns can arise that Airbnb will need to resolve quickly. Collaborative consumption represents a major economic, social and cultural shift as it moves out of infancy and toward acceptance. These companies need to find the balance between the potential of the sharing economy and the standing regulation of the government. The current brick and mortar companies that are participating in highly-regulated industries like hotels or rental cars now have to compete with services that do not go through the same rigorous levels of inspection or qualifications to ensure public safety (Lawler). Sharing economy companies could make a solid argument for self-regulation. Airbnb should take care that they currently have the proper management to ensure there are no nefarious parties in their business dealings and that their brand is strong enough to self-regulate (Lawler). For a well-rounded approach, shared economy companies should look towards or at least be aware of how the government may impose regulations to see how they might help or hinder Airbnbâ₠¬â„¢s progress. There will come a time when companies like Airbnb will need to defend their unconventional and minimally regulated services, and should now put into place a team that can defend them. Lobbying municipal and state governments in high usage areas is a more traditional but still relevant area for Airbnb to protect its business model and by extension its users. The greatest advantage that collaborative consumption has when defending their stance to the economy is that they exist to help people in their communities to meet their goals (Metcalf, Warburg). These companies need to leverage their community-based benefits as a way to gain support and appeal to those wanting greater government intervention. Preparation and understanding of user needs, government regulations and economic trends will bridge the nascent shared  economy into a strong, sustainable economic force. Therefore, if Airbnb continues to focus on building a brand that consumers can trust in and created mechanisms to support hosts and guests then it can be a durable, profitable company for years to come. WORKS CITED Airbnb. YouTube. Web. 27 June 2013. https://www.youtube.com/user/Airbnb Anderson, Lauren. â€Å"Collaborative Consumption Directory – Visualized.† Collaborative Consumption. Collaborative Consumption, 30 May 2013. Web. 01 July 2013. http://www.collaborativeconsumption.com/2013/05/30/collaborative-consumption-directory-visualized. Ciccone, Alicia. â€Å"The Sharing Economy.† The Huffington Post. TheHuffingtonPost.com, 05 Sept. 2012. Web. 01 July 2013. http://www.huffingtonpost.com/2012/09/05/the-sharing-economy_n_1857201.html Empson, Rip. â€Å"CEO Brian Chesky Says Airbnb Will Be Filling More Room Nights Than All Hilton Hotels By The End Of 2012.† TechCrunch., 12 Dec. 2012. Web. 29 June 2013. http://techcrunch.com/2012/12/12/cloudera-ceo-mike-olson-by-december-31st-airbnb-will-be-filling-more-room-nights-than-hilton-hotels/ Geron, Tomio.†Airbnb and the Unstoppable Rise of the Share Economy.† Forbes, 11 Feb. 2013. Forbes. â€Å"Guarantee.† Airbnb. Web 30 June 2013. https://www.Airbnb.com/guarantee Lawler, Ryan. â€Å"Airbnb: Our Guests Stay Longer and Spend More Than Hotel Guests, Contributing $56M to the San Francisco Economy.† Tech Crunch. 9 November 2012. 30 June 2013. http://techcrunch.com/2012/11/09/airbnb-research-data-dump/ Lawler, Ryan. â€Å"Balancing Innovation And Regulation In The Sharing Economy.†TechCrunch. Crunchbase, 9 Dec. 2012. Web. 01 July 2013. http://techcrunch.com/2012/12/09/balancing-innovation-and-regulation-in-the-sharing-economy. â€Å"Life† Airbnb. Web 30 June 2013. https://www.Airbnb.com/life â€Å"LinkedIn Today: Top Minds, Big Ideas.† LinkedIn.com. Web. 29 June 2013. http://www.linkedin.com/today/influencers?trk=tod3-top-nav-filter Kotler, Philip, and Kevin Lane Keller. â€Å"Chapter 8 Identifying Market Segments and Targets.† Marketing Management. Upper Saddle River, NJ: Prentice Hall, 2012. Melby, Caleb. â€Å"Who Will Get Rich from Sky High Airbnb Valuation?† Forbes. Forbes Magazine, 19 Oct. 2012. Web. 27 June 2013. http://www.forbes.com/sites/calebmelby/2012/10/19/peter-thiel-may-invest-150-million-in-airbnb-at-2-5-billion-valuation/ Metcalf, Gabriel, and Jennifer Warburg. â€Å"A Policy Agenda for the Sharing Economy.†SPUR.com. The Urbanist, Oct. 2012. Web. 02 July 2013. http://www.spur.org/publications/library/article/policy-agenda-sharing-economy. Olson, Kristine. â€Å"Campbell Mithun.† Campbell Mithun. 8 Feb. 2013. Web. 01 July 2013. http://www.campbell-mithun.com/678_national-study-quantifies-reality-of-the-sharing-economy-movement. Temple, James. â€Å"Google Places Draws Complaints from Yelp, Others.† SFGate. San Francisco Chronicle, 29 June 3011. Web. 27 June 2013. http://www.sfgate.com/business/article/Google-Places-draws-complaints-from-Yelp-others-2352896.php â€Å"The Globally, Socially Conscious Consumers.† The Global, Socially Conscious Consumer. Nielson, 27 Mar. 2012. Web. 01 July 2013.

English Longman

My selection is Situation 3 from Page 226. â€Å"Fallen Through The Cracks† Everybody has seen at least one in their lifetime, we all know it. Some of us feel sorry for them, some of us just wish they would get up and do something with their lives. Unfortunately for them, there are far more people that prefer the second option. We would much rather turn the other cheek and pretend we had never seen anything at all. No one ever really thinks of how much they may be hurting someone by just simply walking by.Anyone in their right mind would like to sit on their pedestal and argue that that is wrong and we should help these people get back on their feet. I have yet to see a person do more than drop a couple quarters into the lap of one of these people. I also have a hard time finding any sort of advertisement for helping this country’s less fortunate individuals. As we all know, Americans need to be reminded of what we should be doing, or it will not get done. Yesterday, I was on my way home when I spotted a homeless man sitting next to a building.I parked my vehicle and went over to him. He seemed rather confused about what I was doing, and his first thought must have been that I was there to stare and make fun of him. After being told to go away, I simply said I was there to help. The debate went back and forth for a while until I finally was able to sway his opinion and get him to come with me. I offered for him to come live with me while he finds a job. I told him I would provide food, clothing, transportation to interviews, and toiletry items so he could keep himself looking presentable. We had an accord.On the opposite end of the spectrum, I see literally thousands of people walk by and either act like the person blends in with the background on which they lie, scoff, or say terrible things. Assuming I was in this situation, after a while I might think I am just as worthless as they are saying I am. Also, being so few places to go to seek shelte r or help in improving one self, makes it hard to rise above the current position. Although, some people do deserve the position they are in, many do not, and everyone deserves another chance. No person should have to spend their life n the streets with nothing to call their own when so many people have so much. Locally, a change can be made rather easily, I think. A simple lack of communication seems to be the problem, as far as I can tell. Nobody gets reminded of the issue, therefore, they do not have a drive to do anything about it. Everyone feels they are â€Å"too busy† to make any significant difference. Unless you are working two jobs, going to school full time, and have a family of seven at home, you’re probably not too busy. Five minutes makes a world of difference, and who knows what can be accomplished by simply helping a hand in need?

The Juice

chapter seven measuring domestic output and national income CHAPTER OVERVIEW News headlines frequently report the status of the nation’s economic conditions, but to many citizens the information is confusing or incomprehensible. This chapter acquaints students with the basic language of macroeconomics and national income accounting. GDP is defined and explained. Then, the differences between the expenditure and income approaches to determining GDP are discussed and analyzed in terms of their component parts. The income and expenditure approaches are developed gradually from the basic expenditure-income identity, through tables and figures.The importance of investment is given considerable emphasis, including the nature of investment, the distinction between gross and net investment, the role of inventory changes, and the impact of net investment on economic growth. On the income side, nonincome charges—depreciation and indirect business taxes—are covered in detai l because these usually give students the most trouble. Other measures of economic activity are defined and discussed, with special emphasis on using price indexes. The purpose and procedure of deflating and inflating nominal GDP are carefully explained and illustrated.Finally, the shortcomings of current GDP measurement techniques are examined. Global comparisons are made with respect to size of national GDP and size of the underground economy. The Last Word looks at the sources of data for the GDP accounts. INSTRUCTIONAL OBJECTIVES After completing this chapter, students should be able to 1. State the purposes of national income accounting. 2. List the components of GDP in the output (expenditures) approach and in the income approach. 3. Compute GDP using either the expenditure or income approach when given national income data. 4. Differentiate between gross and net investment. . Explain why changes in inventories are investments. 6. Discuss the relationship between net investmen t and economic growth. 7. Compute NDP, NI, PI, and DI when given relevant data. 8. Describe the system represented by the circular flow in this chapter when given a copy of the diagram. 9. Calculate a GDP price index using simple hypothetical data. 10. Find real GDP by adjusting nominal GDP with use of a price index. 11. List seven shortcomings of GDP as an index of social welfare. 12. Explain what is meant by the underground economy and state its approximate size in the U.S. and how that compares to other nations. 13. Give an estimate of actual 2002 (or later) U. S. GDP in trillions of dollars and be able to rank the U. S. relative to a few other countries. 14. Define and identify terms and concepts listed at the end of the chapter. LECTURE NOTES I. Assessing the Economy’s Performance A. National income accounting measures the economy’s performance by measuring the flows of income and expenditures over a period of time. B. National income accounts serve a purpose for the economy similar to income statements for business firms.C. Consistent definition of terms and measurement techniques allows us to use the national accounts in comparing conditions over time and across countries. D. The national income accounts provide a basis for appropriate public policies to improve economic performance. II. Gross Domestic Product A. GDP is the monetary measure of the total market value of all final goods and services produced within a country in one year. 1. Money valuation allows the summing of apples and oranges; money acts as the common denominator. (See Table 7. 1. ) 2.GDP includes only final products and services; it avoids double or multiple counting by eliminating any intermediate goods used in production of these final goods or services. (Table 7. 2 illustrates how including sales of intermediate goods would overstate GDP. ) 3. GDP is the value of what has been produced in the economy over the year, not what was actually sold. B. GDP Excludes Nonprodu ction Transactions 1. GDP is designed to measure what is produced or created over the current time period. Existing assets or property that was sold or transferred, including used items, are not counted. . Purely financial transactions are excluded. a. Public transfer payments, like social security or cash welfare benefits. b. Private transfer payments, like student allowances or alimony payments. c. The sale of stocks and bonds represent a transfer of existing assets. (However, the brokers’ fees are included for services rendered. ) 3. Secondhand sales are excluded; they do not represent current output. (However, any value added between purchase and resale is included, e. g. , used car dealers. ) C. Two Ways to Look at GDP: Spending and Income. 1.What is spent on a product is income to those who helped to produce and sell it. 2. This is an important identity and the foundation of the national accounting process. D. Expenditures Approach (See Figure 7. 1 and Table 7. 3. ) 1. GDP is divided into the categories of buyers in the market; household consumers, businesses, government, and foreign buyers. 2. Personal Consumption Expenditures—(C)—includes durable goods (goods lasting 3 years or more), nondurable goods, and services. 3. Gross Private Domestic Investment—(Ig) a. All final purchases of machinery, equipment, and tools by businesses. . All construction (including residential). c. Changes in business inventory. i. If total output exceeds current sales, inventories build up. ii. If businesses are able to sell more than they currently produce, this entry will be a negative number. d. Net Private Domestic Investment—(In). i. Each year as current output is being produced, existing capital equipment is wearing out and buildings are deteriorating; this is called depreciation or consumption of fixed capital. ii. Gross Investment minus depreciation (consumption of fixed capital) is called net investment. iii.If more new structures and capital equipment are produced in a given year than are used up, the productive capacity of the economy will expand. (Figure 7. 2) iv. When gross investment and depreciation are equal, a nation’s productive capacity is static. v. When gross investment is less than depreciation, an economy’s production capacity declines. vi. CONSIDER THIS †¦ Stock Answers about Flows 4. Government Purchases (of consumption goods and capital goods) – (G) a. Includes spending by all levels of government (federal, state, and local). b.Includes all direct purchases of resources (labor in particular). c. This entry excludes transfer payments since these outlays do not reflect current production. 5. Net Exports— (Xn) a. All spending on final goods produced in the U. S. must be included in GDP, whether the purchase is made here or abroad. b. Often goods purchased and measured in the U. S. are produced elsewhere (Imports). c. Therefore, net exports, (Xn) is the difference : (exports minus imports) and can be either a positive or negative number depending on which is the larger amount. 6. Summary: GDP = C + Ig + G + Xn E.Income Approach to GDP (See Table 7. 3): Demonstrates how the expenditures on final products are allocated to resource suppliers. 1. Compensation of employees includes wages, salaries, fringe benefits, salary and supplements, and payments made on behalf of workers like social security and other health and pension plans. 2. Rents: payments for supplying property resources (adjusted for depreciation it is net rent). 3. Interest: payments from private business to suppliers of money capital. 4. Proprietors’ income: income of incorporated businesses, sole proprietorships, partnerships, and cooperatives. . Corporate profits: After corporate income taxes are paid to government, dividends are distributed to the shareholders, and the remainder is left as undistributed corporate profits. 6. The sum of the above entries equals national in come: all income earned by American-supplied resources, whether here or abroad. 7. Adjustments required to balance both sides of the account: a. Indirect business taxes: general sales taxes, excise taxes, business property taxes, license fees and customs duties (the seller treats these taxes as a cost of production). . Depreciation/Consumption of Fixed Capital: The firm also regards the decline of its capital stock as a cost of production. The depreciation allowance is set aside to replace the machinery and equipment used up. In addition to the depreciation of private capital, public capital (government buildings, port facilities, etc. ), must be included in this entry. c. Net foreign factor income: National income measures the income of Americans both here and abroad. GDP measures the output of the geographical U. S. regardless of the nationality of the contributors.To make this final adjustment, the income of foreign nationals must be added and American income earned abroad must b e subtracted. Sometimes this entry is a negative number. (Without this adjustment you have GNP. ) III. Other National Accounts (see Table 7. 4) A. Net domestic product (NDP) is equal to GDP minus depreciation allowance (consumption of fixed capital). B. National income (NI) is income earned by American-owned resources here or abroad. Adjust NDP by subtracting indirect business taxes and adding net American income earned abroad. Note: This may be a negative number if foreigners earned more in U. S. than American resources earned abroad. ) C. Personal income (PI) is income received by households. To calculate, take NI minus payroll taxes (social security contributions), minus corporate profits taxes, minus undistributed corporate profits, and add transfer payments. D. Disposable income (DI) is personal income less personal taxes. IV. Circular Flow Revisited (see Figure 7. 3) A. Compare to the simpler model presented in earlier chapters. Now both government and foreign trade sectors ar e added.B. Note that the inside covers of the text contain a useful historical summary of national income accounts and related statistics. V. Nominal versus Real GDP A. Nominal GDP is the market value of all final goods and services produced in a year. 1. GDP is a (P x Q) figure including every item produced in the economy. Money is the common denominator that allows us to sum the total output. 2. To measure changes in the quantity of output, we need a yardstick that stays the same size. To make comparisons of length, a yard must remain 36 inches.To make comparisons of real output, a dollar must keep the same purchasing power. 3. Nominal GDP is calculated using the current prices prevailing when the output was produced, but real GDP is a figure that has been adjusted for price level changes. B. The adjustment process in a one-good economy (Table 7. 5). Valid comparisons cannot be made with nominal GDP alone, since both prices and quantities are subject to change. Some method to sepa rate the two effects must be devised. 1. One method is to first determine a price index, (see Equation 1) and then adjust the nominal GDP figures by dividing y the price index (in hundredths) (see Equation 2). 2. An alternative method is to gather separate data on the quantity of physical output and determine what it would sell for in the base year. The result is Real GDP. The price index is implied in the ratio: Nominal GDP/Real GDP. Multiply by 100 to put it in standard index form (see Equation 3). C. Real World Considerations and Data 1. The actual GDP price index in the U. S. is called the chain-type annual-weights price index, and is more complex than can be illustrated here. 2.Once nominal GDP and the GDP price index are established, the relationship between them and real GDP is clear (see Table 7. 7). 3. The base year price index is always 100, since Nominal GDP and Real GDP use the same prices. Because the long-term trend has been for prices to rise, adjusting Nominal GDP to Real GDP involves inflating the lower prices before the base year and deflating the higher prices after the base year. 4. Real GDP values allow more direct comparison of physical output from one year to the next, because a â€Å"constant dollar† measuring device has been used. The purchasing power of the dollar has been standardized at the base-year level. ) VI. Shortcomings of GDP A. GDP doesn’t measure some very useful output because it is unpaid (homemakers’ services, parental child care, volunteer efforts, home improvement projects). B. GDP doesn’t measure improvements in product quality or make allowances for increased leisure time. C. GDP doesn’t measure improved living conditions as a result of more leisure. D. GDP makes no value adjustments for changes in the composition of output or the distribution of income. . Nominal GDP simply adds the dollar value of what is produced; it makes no difference if the product is a semiautomatic rifle or a jar of baby food. 2. Per capita GDP may give some hint as to the relative standard of living in the economy; but GDP figures do not provide information about how the income is distributed. E. The Underground Economy 1. Illegal activities are not counted in GDP (estimated to be around 8% of U. S. GDP). 2. Legal economic activity may also be part of the â€Å"underground,† usually in an effort to avoid taxation. F.GDP and the environment 1. The harmful effects of pollution are not deducted from GDP (oil spills, increased incidence of cancer, destruction of habitat for wildlife, the loss of a clear unobstructed view). 2. GDP does include payments made for cleaning up oil spills and the cost of health care for cancer victims. G. Noneconomic Sources of well-being like courtesy, crime reduction, etc. , are not covered in GDP. VII. LAST WORD: Feeding the GDP Accounts A. GDP is compiled by the Bureau of Economic Analysis (BEA) in the U. S. Commerce Department.Where does it get its data? Explanation follows. B. Consumption data comes from 1. Census Bureau’s â€Å"Retain Trade Survey† from a sample of 22,000 firms. 2. Census Bureau’s â€Å"Survey of Manufacturers,† which gets information on consumer goods shipments from 50,000 firms. 3. Census Bureau’s â€Å"Service Survey† of 30,000 service businesses. 4. Industry trade sources like auto and aircraft sales. C. Investment data comes from 1. All the consumption sources listed above. 2. Census construction surveys. D. Government purchase data is obtained from 1. U. S.Office of Personnel Management, which collects data on wages and benefits. 2. Census construction surveys of public projects. 3. Census Bureau’s â€Å"Survey of Government Finance. † E. Net export information comes from 1. U. S. Customs Service data on exports and imports. 2. BEA surveys on service exports and imports. ANSWERS TO END-OF-CHAPTER QUESTIONS 7-1In what ways are national income stati stics useful? National income accounting does for the economy as a whole what private accounting does for businesses. Firms measure income and expenditures to assess their economic health.The national income accounting system measures the level of production in the economy at some particular time and helps explain the significance at that level. By comparing national accounts over a number of years, we can track the long-run course of the economy. Information supplied by national accounts provide a basis for designing and applying public policies to improve the performance of the economy. Without national accounts, economic policy would be guesswork. National income accounting allows us to assess the health of an economy and formulate policies to maintain and improve that health. -2Explain why an economy’s output is also its income? Everything that is produced is sold, even if the â€Å"selling,† in the case of inventory, is to the producing firm itself. Since the same amount of money paid out by the buyers of the economy’s output is received by the sellers as income (looking only at a private-sector economy at this point), â€Å"an economy’s output is also its income. † 3. (Key Question) Why do national income accountants include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold?Why don’t they include the value of used furniture bought and sold? The dollar value of final goods includes the dollar value of intermediate goods. If intermediate goods were counted, then multiple counting would occur. The value of steel (an intermediate good) used in autos is included in the price of the auto (a final product). This value is not included in GDP because such sales and purchases simply transfer the ownership of existing assets; such sales and purchases are not themselves (economic) investment and thus should not be counted as production of final goods and services.Used furniture was produced in some previous year; it was counted as GDP then. Its resale does not measure new production. 7-4What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two measures of investment spending would be appropriate? Explain. Gross private domestic investment less depreciation is net private domestic investment. Depreciation is the value of all the physical capital—machines, quipment, buildings—used up in producing the year’s output. Since net domestic product is gross domestic product less depreciation, in determining net domestic product through the expenditures approach it would be appropriate to use the net investment measure that excludes depreciation, that is, net private domestic investment. 7-5Why are changes in inventories included as part of investment spending? Suppose inve ntories declined by $1 billion during 2003. How would this affect the size of gross private domestic investment and gross domestic product in 2003? Explain.Anything produced by business that has not been sold during the accounting period is something in which business has invested—even if the â€Å"investment† is involuntary, as often is the case with inventories. But all inventories in the hands of business are expected eventually to be used by business—for instance, a pile of bricks for extending a factory building—or to be sold—for instance, a can of beans on the supermarket shelf. In the hands of business both the bricks and the beans are equally assets to the business, something in which the business has invested.If inventories declined by $1 billion in 2003, $1 billion would be subtracted from both gross private domestic investment and gross domestic product. A decline in inventories indicates that goods produced in a previous year have been used up in this year’s production. If $1 billion is not subtracted as stated, then $1 billion of goods produced in a previous year would be counted as having been produced in 2003, leading to an overstatement of 2003’s production. 7-6Use the concepts of gross and net investment to distinguish between an economy that has a rising stock of capital and one that has a falling stock of capital. In 1933 net private domestic investment was minus $6 billion. This means in that particular year the economy produced no capital goods at all. † Do you agree? Why or why not? Explain: â€Å"Though net investment can be positive, negative, or zero, it is quite impossible for gross investment to be less than zero. † When gross investment exceeds depreciation, net investment is positive and production capacity expands; the economy ends the year with more physical capital than it started with.When gross investment equals depreciation, net investment is zero and production ca pacity is said to be static; the economy ends the year with the same amount of physical capital. When depreciation exceeds gross investment, net investment is negative and production capacity declines; the economy ends the year with less physical capital. The first statement in wrong. Just because net investment was a minus $6 billion in 1933 does not mean the economy produced no new capital goods in that year. It simply means depreciation exceeded gross investment by $6 billion.So the economy ended the year with $6 billion less capital. The second statement is correct. If only one $20 spade is bought by a construction firm in the entire economy in a year and no other physical capital is bought, then gross investment is $20—a positive amount. This is true even if net investment is highly negative because depreciation is well above $20. If not even this $20 spade has been bought, then gross investment would have been zero. But gross investment can never be less than zero. 7-7D efine net exports.Explain how the United States’ exports and imports each affect domestic production. Suppose foreigners spend $7 billion on American exports in a given year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of America’s net exports? Explain how net exports might be a negative amount. Net exports are a country’s exports of goods and services less its imports of goods and services. The United States’ exports are as much a part of the nation’s production as are the expenditures of its own consumers on goods and services made in the United States.Therefore, the United States’ exports must be counted as part of GDP. On the other hand, imports, being produced in foreign countries, are part of those countries’ GDPs. When Americans buy imports, these expenditures must be subtracted from the United States’ GDP, for these expenditures are not made on the United States’ prod uction. If American exports are $7 billion and imports are $5 billion, then American net exports are +$2 billion. If the figures are reversed, so that Americans export $5 billion and import $7 billion, then net exports are -$2 billion—a negative amount.For this to come about, Americans must either decrease their holdings of foreign currencies by $2 billion, or borrow $2 billion from foreigners—or do a bit of both. (Another option is to sell back to foreigners some of the previous American investments abroad. ) 7-8(Key Question) Below is a list of domestic output and national income figures for a given year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditure and income methods. The results you obtain with the different methods should be the same. | | |Personal consumption expenditures |$245 | |Net foreign factor income earned |4 | |Transfer payments |12 | |Rents |14 | |Consumption of fixed capital (depreciation) |27 | |Social security contributions |20 | |Interest |13 | |Proprietors’ income |33 | |Net exports |11 | |Dividends |16 | |Compensation of employees |223 | |Indirect business taxes |18 | |Undistributed corporate profits |21 | |Personal taxes |26 | |Corporate income taxes |19 | |Corporate profits |56 | |Government purchases |72 | |Net private domestic investment 33 | |Personal saving |20 | | | | a. Using the above data, determine GDP by both the expenditure and the income approaches. Then determine NDP. b. Now determine NI: first, by making the required additions and subtractions from GDP; and second, by adding up the types of income that make up NI. c. Adjust NI (from part b) as required to obtain PI. d. Adjust PI (from part c) as required to obtain DI. (a)GDP = $388, NDP = $361 (b)NI = $339 (c)PI = $291 (d)DI = $265 7-9Using the following national income accounting data, compute (a) GDP, (b) NDP, (c) NI. All figures are in billions. | | | Compensation of employees |$194. 2 | |U. S. exports of goods and services |17. 8 | |Consumption of fixed capital (depreciation) |11. 8 | |Government purchases |59. 4 | |Indirect business taxes |14. | |Net private domestic investment |52. 1 | |Transfer payments |13. 9 | |U. S. imports of goods and services |16. 5 | |Personal taxes |40. 5 | |Net foreign factor income earned in U. S. |2. 2 | |Personal consumption expenditures |219. | | | | |(a) Personal consumption expenditures (C) |$219. 1 | | Government purchases (G) |59. 4 | | Gross private domestic investment (Ig) |63. 9 | | (52. 1 + 11. 8) | | | Net exports (Xn) (17. 8 – 16. 5) | 1. 3 | | Gross domestic product (GDP) |$343. | | | | |(b) Consumption of fixed capital | -11. 8 | | Net domestic product (NDP) |$331. 9 | | | | |(c) Net foreign factor income earned in U. S. |-2. 2 | | Indirect business taxes | -14. 4 | | National income (NI) |$315. 3 | -10Why do national income accountants compare the market value of the total outputs in various years rather than actual physical volumes of production? What problem is posed by any comparison over time of the market values of various total outputs? How is this problem resolved? If it is impossible to summarize oranges and apples as one statistic, as the saying goes, it is surely even more impossible to add oranges and, say, computers. If the production of oranges increases by 100 percent and that of computers by 10 percent, it does not make any sense to add the 100 percent to the 10 percent, then divide by 2 to get the average and say total production has increased by 55 percent.Since oranges and computers have different values, the quantities of each commodity are multiplied by their values or prices. Adding together all the results of the price times quantity figures leads to the aggregate figure showing the total value of all the final goods and services produced in the economy. Thus, to return to oranges and computers, if the value of orange prod uction increases by 100 percent from $100 million to $200 million, while that of computers increases 10 percent from $2 billion to $2. 2 billion, we can see that total production has increased from $2. 1 billion (= $100 million + $2 billion) to $2. 4 billion (= $200 million + $2. 2 billion).This is an increase of 14. 29 percent [= ($2. 4 billion – $2. 1 billion)/$2. 1 billion)]—and not the 55 percent incorrectly derived earlier. Comparing market values over time has the disadvantage that prices change. If the market value in year 2 is 10 percent greater than in year 1, we cannot say the economy’s production has increased 10 percent. It depends on what has been happening to prices; on whether the economy has been experiencing inflation or deflation. To resolve this problem, statisticians deflate (in the case of inflation) or inflate (in the case of deflation) the value figures for the total output so that only â€Å"real† changes in production are recorded .To do this, each item is assigned a â€Å"weight† corresponding to its relative importance in the economy. Housing, for example, is given a high weight because of its importance in the average budget. A book of matches would be given a very low weight. Thus, the price of housing increasing by 5 percent has a much greater effect on the price index used to compare prices from one year to the next, than would the price of a book of matches increasing by 100 percent. 7-11(Key Question) Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 1996 the price per bucket of chicken was $16 and that 22,000 buckets were purchased.Determine the GDP price index for 1984, using 1996 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 1996? Use the two methods listed in Table 7-6 to determine real GDP for 198 4 and 1996. X/100 = $10/$16 = . 625 or 62. 5 when put in percentage or index form (. 625 x 100) [pic] or 60%(Easily calculated [pic]) Method 1:1996 = (22,000 x $16) ? 1. 0 = $352,000 1984 = (7,000 x $10) ? .625 = $112,000 Method 2:1996 = 22,000 x $16 = $352,000 1984 = 7,000 x $16 = $112,000 12. (Key Question) The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP.Indicate in each calculation whether you are inflating or deflating the nominal GDP data. | | | | | | |Nominal GDP, |Price index |Real GDP, | |Year |Billions |(1996 = 100) |Billions | | | | | | | | | | | |1960 |$527. 4 | |22. 9 | |$ ______ | |1968 |911. 5 | |26. 29 | |$ ______ | |1978 |2295. 9 | |48. 22 | |$ ______ | |1988 |4742. 5 | |80. 22 | |$ ______ | |1998 |8790. 2 | |103. 22 | |$ ______ | | | | | | Values for real GDP, top to bottom of the column: $2,376. 7 (inflating); $3,467. (inflating); $4,761. 3 (inflating); $5,911. 9 (inflating); $8,516 (deflating). 7 -13Which of the following are actually included in this year’s GDP? Explain your answer in each case. a. Interest on an AT&T bond. b. Social security payments received by a retired factory worker. c. The services of a family member in painting the family home. d. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. f. The monthly allowance a college student receives from home. g. Rent received on a two-bedroom apartment. h. The money received by Josh when he resells his current-year-model Honda automobile to Kim. i.Interest received on corporate bonds. j. A 2-hour decrease in the length of the workweek. k. The purchase of an AT&T corporate bond. l. A $2 billion increase in business inventories. m. The purchase of 100 shares of GM common stock. n. The purchase of an insurance policy. (a)Included. Income received by the bondholder for the services derived by the corporation for the loan of money. (b)Excluded. A transfer payment from taxpayers for which no service is rendered (in this year). (c)Excluded. Not a market transaction. If any payment is made, it will be within the family. (d)Included. Payment for a final service. You cannot pass on a tooth extraction! (e)Excluded.Secondhand sales are not counted; the textbook is counted only when sold for the first time. (f)Excluded. A private transfer payment; simply a transfer of income from one private individual to another for which no transaction in the market occurs. (g)Included. Payment for the final service of housing. (h)Excluded. The production of the car had already been counted at the time of the initial sale. (i)Included. The income received by the bondholders is paid by the corporations for the current use of the â€Å"money capital† (the loan). (j)Excluded. The effect of the decline will be counted, but the change in the workweek itself is not the production of a final good or service or a payment for work done. (k) Excluded.A noninv estment transaction; it is merely the transfer of ownership of financial assets. (If AT&T uses the money from the sale of a new bond to carry out an investment in real physical assets that will be counted. ) (l)Included. The increase in inventories could only occur as a result of increased production. (m)Excluded. Merely the transfer of ownership of existing financial assets. (n)Included. Insurance is a final service. If bought by a household, it will be shown as consumption; if bought by a business, as investment—as a cost added to its real investment in physical capital. 7-14(Last Word) What government agency compiles the U. S. NIPA tables? In what U. S. epartment is it located? Of the several specific sources of information, name one source for each of the four components of GDP: consumption, investment, government purchases, and net exports. The Bureau of Economic Analysis (BEA) in the Department of Commerce compiles GDP statistics. The Census Bureau provides survey data for consumption, investment, and government purchases. Consumption figures also come from industry trade sources as does some investment data. The U. S. Office of Personnel Management also provides data on government spending on services. Net export figures come from the U. S. Customs Service and BEA surveys on service exports and imports.

HW Assignment Example | Topics and Well Written Essays - 250 words - 3

HW - Assignment Example Customer identification programs are also usually protected as a way of maintaining ethics on the net. Companies are also keen to release any of the important information regarded as business security and such information are normally protected with passwords and cookies which prevent hackers from obtaining them (Mason pg 7). 3. Due to rapid development in technology companies are forced to change swiftly with the changes. Virtual Private Network is useful in extending private network across to the public which helps in sharing of data across public and private networks. Through proxy servers most companies have adopted the use of Wide Area Network as a means of faster communication. 4. Intrusion Detection Systems have failed in the sense that they fail to raise alarms in case of a hacking procedure begins. IDS cannot work better since they only depend on either signature matching or abnormality to detect an attack. However, this is not normally done faster due to the single lines that the system uses and therefore might take a longer time before detection of any attack. Hackers have monitored the use of obfuscation, fragmentation, encryption, and overloading as a means of exploiting IDS. 5. IPsec is not used everywhere since it needs to be invisible to the users. Most of the time if IPsec is under use it is usually invisible to the writer of the web browser as well as the web server. This is usually done by the web administrator. Moreover it requires a lot of set up to function well since it performs better at system level and not the application

Creativity and Innovation Essay Example | Topics and Well Written Essays - 3000 words

Creativity and Innovation - Essay Example In my case, it is the latter that made me realise my creative potential, and helped me to plan my career as an Interior Designer Event Manager in future. Over the years, a number of theorists through case studies, research methods and experiments, have attempted to understand the innovation and creativity amongst individuals, in a better way. All these efforts have significantly contributed in broadening the comprehension of the subject, in spite of the disagreement in between the theorists along with their hypotheses that still remain to be substantiated fully. But, it has been unanimously agreed that there are no definite rules concerned with the sources of creativity. According to Teresa Amabile, the Head of the Entrepreneurial Management Unit at Harvard Business School and also a doctorate in Psychology has stated that creativity is actually a confluence of Creative Thinking, Knowledge and Motivation. Creative Thinking relates to the problem approaching mechanism of the people, which is dependent on the working and the thinking style of the individuals. Knowledge refers to the relevant understanding that an individual brings in o rder to bear a creative effort. Teresa Amabile stresses on the fact that motivation is an accepted key to creative production, and most of the important motivators are passionate and are interested in the work. Knowledge has been described as the relevant information that an individual brings in order to bear a particular problem. According to Howard Gardner, there are two types of knowledge that are required for creativity, namely, long term focus and in depth experience. Creativity rests on the particular ability to combine previous disparate elements in new ways that implies the need for much broader focus along with varies interests. Key aspects of Creative Thinking, as suggested by Amabile, comprise of the following: Combining knowledge from the previously disparate fields Comfort in disagreeing with the others and trying to find out solutions that depart from status quo The specific ability to step away from a particular effort and return later with some fresh perspective The ability to persevere in dry spells and difficult problems Motivation, on the other hand, comprises of intrinsic interest, childlike curiosity and perseverance that border obsession, collectively set the individuals, who in turn, change the culture apart from rest of mankind. It has been noticed that much of the work of Amabile focuses on the role of intrinsic motivation and finding out the ways in which the intrinsic motivation can be improved both in the workplace as well as in the classroom. (Karlyn Adams, September 2005, A) The revised view of Amabile acknowledges the fact that probably two types of extrinsic motivation exist namely, non-synergistic motivation and synergistic motivation. Non-synergistic motivation refers to the controlled motivations and synergistic motivations refer to the enabling and informational motivations; synergistic extrinsic motivators actually enhance and support intrinsic motivation, while non-synergistic motivators hinder the inherent or the intrinsic motivation. In relation to this, Amabile stresses that in educational contexts, the reward for schoolwork should always be viewed in the light of their impact on the creativity. This intrinsic motivational theory is well reflected in the lives of great creators, like that of Picasso, Einstein and Gandhi. All these great personalities

None Essay Example | Topics and Well Written Essays - 500 words - 28

None - Essay Example Furthermore, they respect the ancestors as a sign of adhering to the religion. Paganism is practiced in the modern day world. Some even carry out practices of paganism without realizing. In fact, many practices of paganism have been incorporated in the modern religions. Most religions practice festivals which revolve throughout the year. Pagans celebrate festival according to calendar. This has been adopted by religions such as Christianity. Paganism has the characteristic of using physical objects to represent their gods. This ritual has been adopted by Christians to represent certain aspects of worship. For instance, Catholics use images of Jesus on the cross I their worship. This is not different from paganism. It amounts to worshipping of what one can see (Davy 87). Though there are sacred explanations to these rituals, the fact remain that physical objects are used to make images of God. This is a case whereby the Christians practice paganism but they are not ware. I prefer that they stop using the images. There has been the battle of whether to approve or ban the use of tattoo. Tattoo is a common activity among the youth whereby they draw images on their bodies. Many parents have differed with their children on the matter regarding it an ill activity. Some people have been advocating that the laws should reflect parental rights. This would enable the parents to make decision on whether to allow their children to use tattoos. Many states have laws that make the practice illegal to minors if it is done without parental approval. To be exact, at least 45 states in America have laws that illegalize the use of tattoos among minors (PBS, 1). According to the laws, the people who perform the tattoo are considered as the violators. The law is appropriate. The state gives parents an opportunity to exercise control over their children. Children should make such life decisions with the consent of parents. Children should not be allowed to make

Black Muslim movement Research Paper Example | Topics and Well Written Essays - 2500 words

Black Muslim movement - Research Paper Example Elijah Muhammad ensured that the Black Nationalist and self-governance (the group called Nation of Islam) ideals were able to reach the poor black people and those in prison. Through his leadership the organization drastically grew from 8,000 members and accumulated over 100,000 members in the 1950s and 1960s especially after the involvement of its spokesperson or minister Malcolm X 2. However, as time went on there was friction and disagreements between Muhammad and Malcolm that resulted in Malcolm being suspended in 1963 and subsequently being assassinated in 1965 most likely by Muhammad followers3. Muhammad finally died in 1975, and ultimately his son Wallace D. Muhammad (Later changed to Warith Deen Mohammed) assumed the leadership and his teachings did not insinuate much violence to black Muslims like his father. Wallace pushed for the organization to adhere to the teachings of international Islamic community that was more inclined to the Sunni Islamic norms while he also change d the group to World Community of al-Islam with its ground in the West, and later it became American Muslim Mission then to American Society of Muslims. In 1977, some members split from this group through the guidance of Louis Farrakhan since they felt that they needed more radical changes. They called themselves the Nation of Islam and they focused on reliving the teachings or footsteps of Elijah Muhammad. The Nation of Islam began accommodating traditional Islamic norms in the 1990s while Farrakhan and Mohammed publicly claimed that they had ended their long rivalry in the year 20004. Background/History of Black Islam Movement The Black Muslim Movement or what is popularly called Nation of Islam (NOI) came into being in Detroit, Michigan through the leadership of Wallace Fard Muhammad in the year 1930. The Black Muslim followers refereed to Fard as the â€Å"Mullah Fard,† â€Å"the Prophet,† he was also known as â€Å"The Great Mahdi† and even â€Å"The Savio r.† His teachings to the black were that they were part of an early and long forgotten tribe called Shabazz. He cited that all white people were â€Å"devils† and therefore, a war would ensue among all races in the world and these â€Å"white devils† will ultimately be destroyed. In 1934, Fard vanished mysterious (possibly murdered by rivals) and in that instant one of his devoted followers Elijah Poole became the leader while he changed his name to Elijah Mohammed. An uprising occurred in the Temple at Detroit and therefore, Elijah had to move to Chicago where he attracted many black followers as they wished to be part of the rebellion against white power5. Elijah had been sentenced to five years (1942-1946) in jail since he agreed with Hitler and Nazi ideas while motivating blacks to refrain from joining the American army. During his time in prison, Mohammed realized that black convicts were especially the best people to support the anti-white and anti-Jewish s entiments in favor of black Muslims. Mohammad embarked spreading a message that encouraged Nazi support and black movement ideologies which converted many blacks to the group by the time he left the prison system. In 1947, a black drug dealer, robber, and rapist called Malcolm Little heard about the Black Muslims group during his time in Michigan state penitentiary. Malcolm Little stopped smoking, gambling and refrained from eating pork in a bid to adhere to the Muslim

Guillermo Furniture Store Analysis Essay Example | Topics and Well Written Essays - 1750 words

Guillermo Furniture Store Analysis - Essay Example By use of the weighted average cost of capital (WACC), multiple valuation methods in minimizing the risks and calculation of Net Present Value (NPV) of future cash flows including sensitivity analysis, the company can find a solution to the impending problem. Weighted Average Cost of Capital The weighted average cost of capital (WACC) refers to the rate of return that the company or business anticipates acquiring on its optimal risk ventures in order to offer a considerable anticipated return to all its shareholders. It is applied in valuing new assets that possess similar risks as the existing assets and that hold a similar debt ratio. WACC is a relevant rate of discount specifically for projects that are similar to the current business operations (Brown, & Reilly, 2006). To determine WACC, one must first understand that a majority of firms use different forms of financing. Some of the financing techniques include use of bonds, ordinary shares, preferred shares and other form of sec urities. The securities have unique types of risks and thus owners seek to get various rates of return. Under such conditions, the firm’s cost of capital might not be equal to the anticipated return on common shares. It is dependent on the anticipated return from the entire portfolio of securities that the firm has given out. Besides, taxes are also included given the point that interest payments executed by the firm are expenses which are tax deductible. In this perspective Guillermo’s cost of capital will be established as the weighted average of post-tax interest cost of debt financing and the equity cost. This is to say that the anticipated rate of return on the company’s ordinary stock. The weights are the portions of debt and equity in the company’s capital structure.  Ã‚  Ã‚  The weighted average cost of capital is utilized to assess optimal risk on the capital ventures on projects. This is means that the risk on the projects coincides with the r isks the company faces on the current operations and assets.   The average cost of capital is found by; WACC = Kd (1-T) Wd + Ke* We (Emery, Finnerty & Stowe, 2007). From the financial statements given the cost of debt before tax is 7.5%, the tax rate stands at 42%, the weight of debt in the capital structure in 2010 is 84.3% while that of 2011 is 82.4%, and the weight of equity in the capital structure is 15.7 in 2010 and 17.5 in 2011 while the cost of equity is 11.34% The above figures were derived as follows; Weight of debt: Information from assets, Liabilities & Equity Information  Ã‚  Ã‚   Wd 2010 = Total liability/ Total Equity=$1,130,963/ [$211,111+$1,130,963] = 84.3% Wd 2011 =Total liability /Total Equity=$1,109,358/ [$235,805+$1,109,358] = 82.4% Cost of equity is derived from the following steps: Risk free rate used is 4.36% while the market rate of return according to S & P rating is 13.08 %. It should be noted that the security’s contribution to the risk of a po rtfolio that is diversified is dependent on the market risk. However, some securities might not be affected by the ups and downs in the market. The sensitivity of securities to market movement is known as beta. Securities with a beta more than 1 are specifically sensitive to the market movement (Emery, Finnerty

MBTI personal reflection paper Assignment Example | Topics and Well Written Essays - 1000 words

MBTI personal reflection paper - Assignment Example It enables an individual evaluate the effects of personality on leadership styles within the organization. From the results obtained from the MBTI, I learned that self- assessment can foster a person to identify his leadership behavior. The ESTJs has strengths and weaknesses, which are commonly important to concentrate on before taking any position. From the assignment results, ESTJs have strengths that include honest, loyal, friendly, and direct. Individuals with ESTJ personality traits are conservatively based on their perceptions, and they are contented with expressing their views. Besides, individuals with such traits are also direct in the fact that they like concentrating on real things and providing immediate solutions to the problems. They are commonly dedicated to their work, and they ensure that any tasks are not abandoned and are completed as they remain the right thing to perform. They are strong-willed in the fact that they stick to their own beliefs and defend their ideas relentlessly, and their principles are proven clearly. To justify the strengths of ESTJs, I can use my personal experience. I realized that I am hard working, direct and honest, a project organizer, make tough decisions and presentin g constructive criticism, and meet deadlines and goals. In relation to my hard working personality trait, I ensure that I bring all people together in the community especially during the celebration of cherished local events and in defense of traditional values that can hold families and communities together. During my high school education, I also liked being direct and honest while talking with friends and other people. Even though people with ESTJ personality type are comfortable with the organization structure, they also try to inflict changes that might affect the firm. They also impose tough opinions and ideas to other people working within the

Communication Process Essay Example for Free

Communication Process Essay 1. Briefly describe the misunderstanding, including the setting and the people involved. At my recent job that I was working a situation came about, I was helping my director file some bills with personal information. Well she did not make it clear that each bill went into a certain folder, which made my job a lot difficult and ending up me having to do the whole process over again, when I had to do another project that my other Director had told me to finish up within that day. 2. Complete the following table with information from your described misunderstanding. |Question |Answer | |Who was the sender? |My Director | |Who was the receiver? |Myself | |What was the message? |File these documents | |What channel was used to send the message? |Sound and light waves | |What was the misunderstanding? |How to file the documents | |How could you have avoided the misunderstanding? |It could have been avoided if my director would have told me the correct | | |way to file them instead of me trying to figure out how to file the | | |documents. 3. The perception model in Ch. 2 of Communicating in the Workplace shows that prior knowledge and experiences combine with your psychological state to shape your subjective reality. What was your perception going into the situation? How did your perception of the misunderstanding affect the communication process? My perception of the situation was that there really was not correct way into filing the documents, all she wanted was for them to be filed. It affected the misunderstanding and how the communication process went through my mind was that she should have told me how to correctly do it the proper way, instead of just telling me to finish filing. I just thought that she wanted them out of the way and into the filing cabinet. 4. After reflecting on your misunderstanding and analyzing it with what you have learned this week, what did you learn about the communication process? I have learned that there are a lot of ways in communicating and that when someone tells another person to do something, then that person is listening and taking in information differently, to ask questions when told to do something if you do not understand what that person is wanting from you. The reason why I say this is because not every person is going to be the same, as it stated in the example of the model in Ch. 2 of Communicating in the Workplace, A hog could be a pig but really the person was referring to a motorcycle. For another instance when someone is telling another person to do something, that person receives the message but might take it another way because of how that person encodes the information, that is why it is important to respond back to the person and making a clear understanding of what that person is wanting. I would not want to risk someone else’s life it I did not understand the information correctly because that will affect my job on the line as well. Reference Cheesebro, T., O’Connor, L., Rios, F. (2010). Communicating in the workplace. Upper Saddle River, NJ: Prentice Hall.

Parental Awareness of Educational Play

Parental Awareness of Educational Play Introduction This study will be looking at how parents of children in a foundation stage setting understand and value play based activities to aid their childs learning and to consider their views on play as an integral part of the Early Years Foundation Stage (EYFS). Many policies have been introduced in the last few years concerning the education of young children. Through the implementation of policies which concentrate on supporting families, alongside initiatives like Surestart; childrens welfare and education have been united as well as support being offered for parents, families and the community. The idea of the family is now seen as an important part of early years education and parents should be encouraged and valued as they are important to the well being of their children and their educational benefits. Aubrey (2000) suggests that early education does not happen in a void and notably, we must remember that development begins with the family and reminds us that parents are a childs first educator. The EYFS tries to include all that is needed to ensure a child thrives in a EYFS setting, including children learn through play and parents work in partnership with settings. Although the EYFS is not without its critics. This study will seek to establish the extent of parental awareness of the educational value of play in the EYFS classroom. I have been employed in the early years sector for over fourteen years and have helped with the transition from nursery to primary school for many children, including three children of my own. During this time, I have experienced many parents whom are very happy for their child to be involved in a play based curriculum whilst in nursery education, but become concerned and surprised that children when entering school do not participate in a more structured and traditional curriculum and that the EYFS is continued into school. The next chapter will review the literature in the area of early years education, and will begin by considering some of the many definitions of play. Literature review This literature review, will discuss the many definitions of play. Major learning theories with reference to play, will be considered and how they have influenced education of today. It will also look at how policy has changed and developed, what has defined the Early Years Foundation Stage (EYFS) and discuss whether parents are aware of the benefits of a play based curriculum or not. What is play? An early definition of play comes from Isaacs (1999) who viewed play as the work of children. Montessori (2005) believed that children preferred to work whilst playing. Her teaching focused on children developing basic skills, skills could include button and fastening equipment to promote independence in dressing. Though Montessori did not promote learning through play, she did value individual effort as well as working as part of a group. (Lindon, 2001). Lindon (2001) believes play is a range of activities which are undertaken for their own enjoyment, satisfaction and interest. Play is not essential for survival although these activities support psychological wellbeing, learning physical skills and intellectual stimulation. Whereas Moyles (1989) comments on how play is valuable as an excellent learning tool, he also notes the difficulties in finding a definite, precise and conclusive definition of play. He continues by saying there is a need for a different terminology to be used, as the idea of play can be interpreted as something trivial, instead of being seen as play being serious and important to learning. Wood and Attfield (2005) agree by suggesting play cannot easily be defined or grouped as it is always dependant on circumstance and context, which can vary greatly. It has become apparent that although there is no clear definition of play, play is considered to be important by researchers in the field, although Peacocke (1987) argues that the lack of definition causes parents to be suspicious of play as a true learning activity. Child development and play Roussou as far back as 1700 challenged the idea that children were naturally sinful with the opposing idea that children were naturally innocent (Oates et al, date) Roussou as cited in Wood and Attfield (2005) used his knowledge to think practically on how children should be raised and determined that children from birth to twelve, should have their natural innocence appreciated and should be free, to run, jump and play all day. Ideas through the years have often challenged the current thinking of the time and childhood and play has developed and changed because of differing new ideas, to how we define it today. Child development ideas continue to be discussed and challenged with innovative and profound ideas having a large impact on how childhood has been conceptualized and children treated in society. Whilst others asked what do children know Piaget as cited in Garhart Mooney, (2000) suggests that Piagets work was about how children arrived on what they know? Piaget claimed that children construct their own comprehension by giving meaning to their surroundings and the people they meet. Piaget (1967) noted how all children of the same age appeared to think in similar ways, and how they would also make similar mistakes. From the observations Piaget noted the changes in the childrens thinking; this led him to believe that the child was an isolated individual, who adapts to the environment they are in (Smith et el, 1998). Gerhard Mooney, (2000) suggests Piagets theory has created the most comprehensive over view of young children and how they think, although practitioners of today can see some of Piagets theories are not as purposeful as once thought, the basic ideas of his theory still helps practitioners to plan a focused and challenging curriculum for young children. Lindon (2001) continues by suggesting that it is through Piagets beliefs that children create their own understanding of the world, which led him to highlight that adults should create environments which children can discover and learn by themselves. Cadwell (2003) suggests an example of this is the preschools of northern Italy, Reggio Emilia which are strongly influenced by the theories of Piaget. Vygotsky as cited in Garhart Mooney (2000) agreed with Piaget that childrens knowledge was created from personal experiences; although Vygotsky suggests that personal and social experiences can not be separated and that children learn from each other every day, their language develops and they grasp new ideas as they speak to each other, listen to each other and play together. Daniels (1996) proposes that Vygotsky saw play as an important activity to aid learning and development. Vygotsky as cited in Garhart Mooney (2000) suggests play combines time and opportunity for activities in social interaction, language and the use of symbols. He believed that this would empower the childs own interests and operate problem creating and problem solving. As cited in Brock et el (2008) Vygotsky believed these were the tools needed to work within the childs zone of proximal development and that when children are learning, they learn best when what they are learning is just outside their grasp. Th is means that practitioners should know what the child is capable of and what they are capable of understanding. The childs development should then be aided by adult guidance and teamwork with peers. Bruner (1977) continued to develop the ideas and theories of Vygotsky. He believed that children had an in built desire to learn. Bruner, like Vygotsky suggested that it is the work of the practitioner to know where the childs development is at and how they can carry forward the childs development to the next stage, he called this scaffolding. Broadhead (2006) suggests that Vygotsky and Bruners view is that the child and adult will work together, and through this they will develop new schemas. This idea has become increasingly popular, and its relevance to todays education. Development and play Froebel as cited in Macvanel (2009) believed that childhood was a stage in its own right and children were not mini adults. He felt children should learn through play, experience life first hand, self choose activities and use natural motivation. Froebel felt that play was a spiritual activity which reflected deep inner processes and change (Wood and Attfield, 2005). Montessori (2005) believed in an environment which is planned and learning activities supported training. She disregarded fantasy play stating it as insignificant and demeaning to the child, although she provided a child sized setting in which children could learn and rehearse life skills without the adult intervening. Montessori placed less emphasis on free play and fantasy play than Froebel (Montessori and Gutek, 2004). Where Montessori disregarded fantasy play, Isaacs (1995) saw the value of play especially spontaneous, imaginative and manipulative play. She saw that play could be used as a way to gratify frustrated n eeds, work through inner discord and gather understanding of the world in which children live and the relationships they have with people. Play was central to Isaacs curriculum and invited the children to adapt problem solving techniques and develop number, mark making and reading skills (Palmer, Cooper and Bresler, 2001). Current research carried out by Play England entitled Play for a change, revealed that playing had effects on areas of the brain controlling emotion, motivation and reward. The researchers continued by suggesting that play helps children to develop a range of responses to differing situations, experiences and relationships. To conclude it states playing aids children in developing flexibility and the ability to adapt to changing situations (Quarell et el, 2008). Leong (2009) agrees by saying the research into the links between play and cognitive and social skills is apparent and that play is the first stepping stone to children learning more complex ideas as they get older. This research raises new questions for those who view play as a trivial, simple, frivolous, unimportant, and purposeless behaviour and challenges them to recognize play for the important factor it is and the effect it has on childrens learning (Christie, 2001). Smith (2000) categorised play into five areas. He believed that children were active players, learners, social and emotional beings and autonomous players, and their play fitted into each of these areas. Lindon (2001) disagrees saying that researchers must be aware that although they desire areas of play to be clearly defined into categories, that these clear categories can restrict the view of play and when children play normally, they move between areas of play and adult defined areas of development with ease. A child, who is active in play, should not always be seen as just the child engrossed in physically active play (Lindon, 2001). Fisher (1996) agrees and points out that a child engaged in an intellectual activity is just as active as the child pedalling a bicycle. Eden (2008) says that children engrossed in play with others, learn how to work together and live together, that play is a valuable resource to promote equality and cultural awareness in young children. Smith (2000) agrees by saying that children establish healthy relationships with their peers and through play children have to learn to accept others. Bruce (2001) acknowledges that it is this enjoyment of all types of play that aids the children in play. Children reflect on what they have learnt, reproduce their experiences and through this cycle of everyday learning the children consolidate their experiences. Curriculum and play Since the 1944 Education Act, primary teachers and staff were given considerable freedom to teach what they believed to be educationally relevant to the children within their care (Cox and Sanders, 1994). Change was bought about after the Education Reform Act (1988), namely with the introduction of the National Curriculum (Cox, 1996). The national curriculum was introduced in September 1989 and is a framework used by all maintained schools to ensure that teaching and learning is well structured, balanced and sound (directgov, 2010). After the implementation of the national curriculum, it was soon thought that the children under five would also benefit from a curriculum. The Rumbold report (1990) was influential in developing recommendations for provision for these young children. Play and talk were recommended as key approaches. The first attempt to define a curriculum was called desirable outcomes for childrens learning (1996) and included six areas of learning. (Wood and Attfield, 2005). Play in the Early Years Foundation Stage (EYFS) The EYFS was implemented in 2007 and brings together the Curriculum Guidance for the Foundation Stage and Birth to Three Matters. The Effective provision of pre school education (EPPE) project, informed part of the EYFS and among other things showed that the experiences provided for young children in the Foundation Stage and early years settings have a strong impact on childrens learning and social development (DCFS, 2008). All schools and early years settings caring for children under five years have to implement the EYFS programme and the programme ends at the end of the academic year the child turns five (Pugh and Duffy, 2010). The EYFS sets out legal requirements and direction to help practitioners in settings meet the varied developmental and learning needs of all children under five years (Bruce, 2008). The EYFS proposes that flexible plans are used by practitioners to adapt ideas and that carers use observations to link play situations to learning outcomes. The main premise of the EYFS is that play is the central aspect and can support each of the six areas of learning (Canning and Read, 2010). For example, Pimentel (2007) suggests that to develop problem solving reasoning and numeracy in young children, practitioners should be providing mathematical opportunities through play based, open ended and challenging activities like imaginative play, songs and stories. Current research from Bergen (2002) agrees concluding there is a relationship between problem solving and pretend play and that social play has a great influence on problem solving of all kinds. Worthington and Caruthers (2010) continue by suggesting that parents should been shown how children explore mathematical meaning through play, to fully understand the concept. Riley (2003) suggests that play opportunities offer chil dren the chance to acquire knowledge and understanding of the world in which they live and that play has the potential to be the major approach to childrens learning. The EYFS, promotes parents as partners as it recognises that young children whose parents are involved in their early learning make notably better progress (Evangelou, 2004). The child and the family is now recognised as a whole, each able to benefit the other. Initiatives such as Sure Start believe in educating parents in order to educate the child. (Kurtz, 2003). Although Wiltshire (2002) argues that the whole idea of the foundation stage is confusing to parents as they do not know anything about its aims and outcomes. Petrie and Hollaway, (2006) suggest some parents may not be aware of the opportunities for learning that are embedded in a play-oriented curriculum, whilst Brotherson (2009) reminds us that at times, parents have concerns that their child is just playing and not learning what they need to learn and parents must be made aware that play is learning for children. Elkind (2007) continues by saying that parents are concerned their child is at a disadvantage if they are no t constantly engaged in high level learning and educational games, and is of the opinion that parents need to be alerted and reassured of the learning benefits of unscheduled imaginative play situations which will help develop their academic and social abilities. Since the EYFS has been implemented, there has been some who have criticised the initiative. There are fears that a single framework will result in a checklist style curriculum, with practitioners being overwhelmed with the framework (Thompson, 2006). Whitebread and Whitebread (2008) agree by continuing that although concerns over the expanse of the curriculum are minimal, there are serious concerns that in some areas the capabilities of the children are under estimated. Brock et el suggests that practitioners must be fully aware of the breadth and depth of play and a play based curriculum to be able to implement the EYFS effectively and with worthwhile outcomes. Key points As far back as 1929 Isaac defined play as childrens work, now over eighty years later the EYFS is based upon children learning through play. The EYFS principles are based on research and theory of the early years pioneers of education, although it is argued that parents are critical and confused by it. Policy and early years initiatives are encouraging parents to become involved in their childs care, but it is unlikely they will become involved and embrace the EYFS if they do not understand the ideas and concepts which it is built around. I am interested to see if parents understand the benefits of play, or like Peacocke (1978) suggests parents do not see the benefits of play and like Whitebread (2002) states they are confused by the foundation stage. Research Aims To find out what knowledge parents have of the Early Years Foundation stage. To gather information on what parents understand are the benefits of play as a learning tool in the foundation stage classroom. To gain insight into what parents views are of a play based curriculum compared with a more traditional curriculum. Methodology This chapter will look at how the research for this study has been approached, how I have designed the research and how it will help to answer the question Do parents of school age children value play as a learning tool to support the Early Years Foundation Stage? I will look at which methods of research have been chosen and why, highlighting the benefits and problems surrounding the chosen methods. Validity and reliability of the research will be discussed as well as discussing ethical issues which may arise whilst carrying out the study. Method and Approach This piece of research is focused upon parental views and awareness of the educational value of play, it will use qualitative methods during which personal opinions will be sought. As the parents views are paramount within the research the methodology used will be an interpretive approach. Robert Holmes (2005) suggests that qualitative researchers believe that the social world is created by the shared understanding of situations. Cresswell (2003) continues by saying that qualitative methods bring peoples personal views into the study. Peat (2002) suggests that the strengths of qualitative research include being able to gather information on the views of the participant and this in turn can help us gain insight and ideas. However, Silverman (2005) suggests that there can be limitations to qualitative research such as a hypothesis cannot be tested and that more ethical issues relating to qualitative studies can be noted as participants are giving personal viewpoints and opinions. Validity Hughes (2001) suggests that interpretive research is valid as long as it is true and notes the genuine voice of the participant. This is demonstrated through the research as the parents are active people whose understandings and actions are paramount and the intricacy and diversity of these opinions are respected. Robert- Holmes (2005) suggests that multiple understanding of the research is all equally important and the range of interpretations gives the research validity. Although Robson (2002) suggests validy is rarely recognised within a single study, but is built up over time during various research. Silverman (2005) suggests that validity can be affected in qualitative research, if the researcher uses second hand knowledge rather than first hand research. I feel that I must make note of this and be assure that I remain aware of as I feel it would be easy to allow my own thoughts, views and opinions affect the research. Robson (2002) continues by suggesting further concerns with validity can arise with concern to whether the sample of people within the study is representative of the population and this must be questioned. To acknowledge this I am aware that the sample of people I am using for my research are not representative of the population as a whole but is rather focused on a small group of parents within a small community, although these parents come from differing social backgrounds. As Bell (1999) points out researchers are dependent on the amity and availability of subjects, and it can be difficult to achieve a true random sample. Focus group My research will be focusing on the parents of a class of thirty children who have all started at primary school in September 2009. The primary school is set on the edge of the Cotswolds and is the only school in a small town. The children are from mainly white British heritage and the school admits pupils from a wide variety of social backgrounds (Ofsted, 2007). Prior knowledge of the class suggests that majority of the children have attended at least one of three pre school settings in the town including two private day nurseries and a charitable preschool. I decided to research this subject after a discussion with a small group of parents who were concerned that there children were still just playing now they were at school rather than participating in the more traditional curriculum, that they were expecting. This made me realise that some parents still did not view play as a significant learning tool to support the EYFS. I also began to question what parents really felt about pl ay as a learning tool, their views of the benefits or criticisms of a play based curriculum and if they even realised that there children would be taught within the EYFS when they began at primary school. Method To find out the views and knowledge that the parents have of both the EYFS and how they view play, I will be using questionnaires and interviews. I have decided to use questionnaires as they are ideal if you are trying to gather a large amount of primary information from a group of people, as suggested by Green (2000). A pilot questionnaire has been designed and given out to a selection of people who are similar to the people I will be giving my final questionnaire to. Once I have collected the draft questionnaires from my pilot group, I will be able to draw up my final questionnaire using any criticisms and suggestions that my pilot group give me. Green (2000) suggests that piloting your research questionnaire allows for the researcher to get rid of any uncertainty or vagueness that your questionnaire raises. The questions I am asking within my questionnaire are a mixture of differing sorts including open ended and closed questions. Green (2000) suggests that a combination of question types should be used when designing questionnaires, whilst Hucker (2001) reminds us that we should ensure that questions are relevant, using straight forward language avoiding assumptions and using a mixture of question types and avoiding leading questions. I feel that since I will have sent a first draft questionnaire to a pilot group of people, that the finished questionnaire I am sending to the parents will have hopefully been changed and rethought if needed, with questions altered or added and that they will meet all the suggestions of Hucker (2001) and Green (2000). Permission will be gained from the head teacher of the school. If the head teacher is happy with the questionnaire content and the proposed methodology for the research, the questionnaire will be issued to all thirty families within the EYFS classroom. Ethical considerations and confidentiality Aubrey (2000) reminds us that researchers have a duty to ensure that their research will do no harm to their participants and that participants will be treated with respect and their answers treated with anonymity and confidentially. The ethics of this research include ensuring the anonymity of all the participants and to present the information they share with me in a true light and to ensure the information remains confidential. Hucker (2001) reminds us that people who are involved in research have a fundamental right to know how the information collected about them will be used. To ensure that all parents know what my research is about I will enclosed a covering letter with my questionnaire outlining my intentions and the aims of the research, my details in case they wish to contact me to discuss anything regarding the research, alongside a brief paragraph outlining who I am and why I am carrying out this research. I will state within this letter that all questionnaires will be ke pt confidential and at no point will anyone be able to identify parents answers. Arrangements will be made to return all questionnaires in a sealed envelope to the class teacher and then passed onto myself. At no point will I know who has returned their questionnaire and who has not. I will suggest to the parents that the questionnaires are returned to the teacher in a sealed envelope, so that they will also not be able to view the answers given by the parents. Hucker (2001) suggests that it is an important idea to ensure triangulation in the research to show similarities across the range of methods used and to support validity and reliability in the research. Questionnaires are my first research tool and as another method to ensure triangulation, I will ask on my questionnaires if any parent would like to meet with me and participate in an interview. By using more than one method of research, I can hopefully show a fully rounded view of the research topic and as suggested by Robert-Holmes (2005) the different evidence produced can be combined and compared to provide a triangulated analysis. To prepare for the interview with any parent who would like to take part, I have decided to do an unstructured interview rather a structured interview and have decided on a list of questions to prompt me to ensure the interview flows and to aid me in doing this. I have chosen to complete unstructured interviews as Robert-Holmes (2005) suggests that structured interviews are very similar to questionnaires where as unstructured interviews shifts the focus away from the researcher and towards the issues and the true feelings of the participant. Bell (1999) suggests that during questionnaire the responses given by participants have to be taken at face value, where as during an interview rich material can be gathered, he likens this to putting flesh on the bones of any possible questionnaire responses. Robert-Holmes (2005) suggests it is an interviewers job to courteously listen to the responses made and to remain non judgemental at all times, this will be easier to do in a relaxed atmosp here. The prompts I will use will be open ended questions, similar to some of the questions asked within my questionnaire but in a much loser context with the aim to allow me more in-depth information on my research topic and parents views on play as a learning tool and gain an insight into their knowledge of the EYFS. An open ended question is a question in which the respondent is requested to provide their own opinion or ideas (Babbie, 2009). The responses my participant gives will be recorded by me in note form, but if I feel that I am missing out on significant information or not giving the participant my full attention, I may use a Dictaphone. This will be discussed with the participant and if they are not comfortable with this I will remain with note taking only. I will need to address the fact that the participants anonymity will have been compromised when doing the interview as I will obviously know whom they are, but I am aware I must ensure that they realise I will remain a confidant at all times and when quoting them or discussing there interview within this study, I will use a codename for each participant. Participants will also be made aware that they are free to withdraw from the study at any time. Hucker (2001) reminds us that there are many advantages of interviews including that they allow researchers to gain more in-depth information from the participants, but that disadvantages of interviews can be that the researcher can affect the research and that the interviewer can often influence the participants answers. Green (2000) agrees suggesting that interviewers should be aware that asking leading questions can be problematic and personal bias can make the research one sided rather than purposeful. Conclusion To summarise this piece of research seeks personal opinions, therefore will be a qualitative study. Aspects of validity, reliability and ethical issues have been discussed and will be maintained throughout. Questionnaires and Semi-structured interviews will be used to collect data from a sample population of parents with children in a EYFS classroom. Though this is a small study, responses will be interesting with regard to parental views towards views on play as a learning tool and the EYFS. Now that the method of data collection has been established, it is now possible to commence with the data collection. N.B After discussions with the Head teacher of the primary school regarding the content of the questionnaires, she has asked that I include two further questions in my questionnaire, the first being Where parents received their information of the EYFS and If parents would like further information on the EYFS and how they would like to receive this information The head teacher felt on a personal level for the school, that she would be able to use all the research to show how effectively the school is working in partnership with parents and where if at all they need to extend the parents knowledge of the EYFS. If the research shows that the school needed to support the parents further how they needed to improve and how parents would like to receive information was also important to her. I have agreed to this as I feel it could benefit all the parents, the children and the school. Hucker (2001) reminds us that carrying out research helps us analyse how we might do something better or mo re effectively, and the head teacher of the school wanted to be able to do this from my research. Data Collection and Analysis This chapter will discuss the data, how it was collected, analysed and interpreted. It will initially discuss the data collection process, any problems which I experienced and the successes I had. Specific themes will be identified and acknowledged alongside a brief description on the analysis of the data and how this data links to current literature. Once the main themes have been acknowledged, they will be examined and discussed in greater detail, which will lead towards the conclusion of the data and the summarisation of the main themes. Data collection Permission was granted by the head teacher of a primary school for me to carry out this research within the school, she agreed as the results would be beneficial to parents, children and staff. A letter of introduction was then distributed to the foundation stage class parents alongside a questionnaire. The letter outlined the research, and the parents were asked if they would complete the questionnaire and additionally participate in an interview. In total, thirty parents were invited to participate in the study. Problems with data collection On sending out the questionnaires, the initial response was low and after the first week only five parents had returned their questionnaire