Public Administration and Civil Service Reform UNDP Cambodia. Case Essay

Public Administration and Civil Service Reform UNDP Cambodia. Case Study - Essay Example Most public managers profess to an attraction to good managerial performance as well as good government performance. However, if their actual conduct is examined, it will become clear that there are two opposing and distinct perspectives on public reform administration reform. Crusading and free-spirited managers are always searching for better methods, promising designs, new ideas, and innovations. They embrace, and believe in novelty. They assess what others are doing elsewhere and identify what they can adapt or copy, and are ready to take risks just to improve performance. They are so eager for change that they often fall victim to the gimmicks and fads that are often witnessed in public management without reason or rhyme. On the other hand, reactionary managers exhibit too much caution and rarely show willingness to attempt anything new. This paper will discuss the factors that hinder or facilitate public administration reform by comparing two programmes of public service reform and looking at the lessons learned from those programmes in terms of the obstacles and opportunities involved in public administration reform. Key words Public administration reform, public management, public service.... to as the National Program for Administrative Reform (NPAR), which would be the foundation upon which the whole public administration reform program would be built. UNDP Cambodia decided to directly support the NPAR, and offered help to the Council of Administrative Reform (CAR) which was aimed at: a) Strengthening the capability of the council’s secretariat in order to improve the effectiveness of national consensus building, strategic planning, donor co-ordination, policy development, and how the NPAR is managed strategically. b) Facilitating the enforcement of priority reform programs and sub-programs, and also the creation of implementation plans. c) Supporting the creation and organization of a Priority Mission Group (PMG) plan so as to improve the efficiency in public service delivery in vital areas of government administration, and also to accelerate reforms. UNDP’s assistance in public administrative reform targets not only decentralized reform enforcement, but also wholesome strategic reform organization. It identified the need to integrate both aspects more fluidly, and also learned some important lessons in the process of supporting Cambodia in its quest to improve public service. Overall, although this project was originally meant to reflect UNDP’s expertise in public administrative reforms, other donors were unwilling to cooperate (Heeks 2002, pg. 25). In addition to this, poor coordination in comparison with other reform areas resulted in weak connections to other activities, disorganized activities, and a loss of focus. Lessons Learned Strategic constituency development is vital to acquire support for and run complex systems modification processes The public administration reform program’s original design failed to recognize the CAR as the

Qualitative research Essay Example for Free

Qualitative research Essay Abstract This paper is the first of a series of three articles relating to a case study conducted at Fairfield University to assess aspects of the rapid introduction of Information Technology at the institution. This article deals with the nature of the problem faced by Fairfield University, the characteristics of the case methodology, and lays the foundation for the selection of this research technique for the current study. The paper begins with an Introduction section to familiarize the reader with the case organization. The following section on Case Methodology explores the history, and some of the applications of the technique. The section ends with specific research protocols for researchers. Introduction Fairfield University is a private liberal arts institution of about 3,000 full time undergraduate students and about 1,000 graduate school students. The undergraduate students are distributed through the College of Arts and Sciences, the School of Business, and the School of Nursing. The graduate students are in the Graduate School of Education, the School of Business, and the School of Nursing. There are also part time students in the School of Continuing Education and the BEI School of Engineering. As with many other private institutions of higher education, Fairfield University faces many challenges. These challenges come from the declining population of college age students and the growing cost of running the institution. The literature will support the preceding statement (Crossland, 1980), but provide little comfort to the institution. One of the areas of greatest concern to college managers is the continuing cost of information technology. With the constant need to increase staff salaries, it is like salaries, inadvisable to reduce the outlay on information technology. Interviews that were conducted by this researcher with the deans and managers indicated that some of the peer institutions of Fairfield University are in fact doing as much if not more in this area. Hence any interruption in the effort to maintain technological currency would result in a competitive disadvantage for the institution. Therein lies the administrative financial challenge. The expense on information technology must be maintained at a time of declining revenues (Nicklin, 1992). The field of information technology at a university is very broad and could encompass many technologies hitherto not considered within its purview. However, there has been a relentless and indeed accelerating pace of convergence of the technologies in telecommunications, library services, and video services. The current study is concerned only with the aspects of information technology as it relates to academic computing and will focus on instructional and research computing. The goals of this study include an examination of the (a) managerial and (b) economic aspects of the rapid acquisition of information technology. The objectives deriving from those goals are: An assessment of the categories of computer use in higher education. An evaluation of the managerial issues of computing, including the centralization/decentralization of computing, client/server computing and the aspects of the Internet and the World Wide Web (WWW) Establish a basis for understanding the current and future economic aspects of information technology acquisition. The research questions arising from the above objectives were as follows: Objective 1 above is addressed by the question: What patterns of acquisition emerge from the current computing environment and the perceived needs for computing? Objective 2 is addressed by the question: What characteristics of the categories of computing use contribute to the patterns of acquisition? The five categories developed by King and Kraemer (1985) and adapted for use by Levy (1988) in his study at the University of Arizona, are used in this study, to examine the computing use at Fairfield University. Objective 3 is addressed by the question: What managerial issues arise from the rapid acquisition of information technology and how important have those technologies become to the organization? Objective 4 is addressed by the question: How will the institution balance the need for technological changes with the need to continue the accomplishment of routine tasks?. Samuel Levy (1988) conducted a study of instructional and research computing at the University of Arizona. This study replicates and extends the Levy (1988) study, and was conducted at Fairfield University. The current study extends the Levy (1988) study in its examination of aspects of the Internet, the World Wide Web, and Client/Server computing. Levy (1988) established the use of the case study as appropriate for the research project, and this researcher also used the literature to confirm the use of case methodology in the study at Fairfield University. The history and development of case methodology is reviewed, in support of the current case study at Fairfield University. There have been periods of intense use followed by periods of disuse of this technique, as documented by Hamel, Dufour, and Fortin (1993) as well as others. The relevance of that history to this study is important in that it establishes the known advantages and disadvantages of the methodology. The particular technique of a single-case study is reviewed, since that is the specific implementation of a case study at Fairfield University and was also used by Levy (1988). Case Study Methodology The history of case study research is marked by periods of intense use and periods of disuse. The earliest use of this form of research can be traced to Europe, predominantly to France. The methodology in the United States was most closely associated with The University of Chicago Department of Sociology. From the early 1900s until 1935, The Chicago School was preeminent in the field and the source of a great deal of the literature. There was a wealth of material in Chicago, since it was a period of immigration to the United States and various aspects of immigration of different national groups to the city were studied and reported on (Hamel et al. , 1993). Issues of poverty, unemployment, and other conditions deriving from immigration were ideally suited to the case study methodology. Zonabend (1992) stated that case study is done by giving special attention to completeness in observation, reconstruction, and analysis of the cases under study. Case study is done in a way that incorporates the views of the actors in the case under study. The field of sociology is associated most strongly with case study research, and during the period leading up to 1935, several problems were raised by researchers in other fields. This coincided with a movement within sociology, to make it more scientific. This meant providing some quantitative measurements to the research design and analysis. Since The Chicago School was most identified with this methodology, there were serious attacks on their primacy. This resulted in the denigration of case study as a methodology. In 1935, there was a public dispute between Columbia University professors, who were championing the scientific method, and The Chicago School and its supporters. The outcome was a victory for Columbia University and the consequent decline in the use of case study as a research methodology. Hamel (Hamel et al. , 1993) was careful to reject the criticisms of case study as poorly founded, made in the midst of methodological conflict. He asserted that the drawbacks of case study were not being attacked, rather the immaturity of sociology as a discipline was being displayed. As the use of quantitative methods advanced, the decline of the case study hastened. However, in the 1960s, researchers were becoming concerned about the limitations of quantitative methods. Hence there was a renewed interest in case study. Strauss and Glaser (1967) developed the concept of grounded theory. This along with some well regarded studies accelerated the renewed use of the methodology. A frequent criticism of case study methodology is that its dependence on a single case renders it incapable of providing a generalizing conclusion. Yin (1993) presented Giddens view that considered case methodology microscopic because it lacked a sufficient number of cases. Hamel (Hamel et al. , 1993) and Yin (1984, 1989a, 1989b, 1993, 1994) forcefully argued that the relative size of the sample whether 2, 10, or 100 cases are used, does not transform a multiple case into a macroscopic study. The goal of the study should establish the parameters, and then should be applied to all research. In this way, even a single case could be considered acceptable, provided it met the established objective. The literature provides some insight into the acceptance of an experimental prototype to perceive the singularity of the object of study. This ensures the transformation from the local to the global for explanation. Hamel (Hamel et al. , 1993) characterized such singularity as a concentration of the global in the local. Yin (1989a) stated that general applicability results from the set of methodological qualities of the case, and the rigor with which the case is constructed. He detailed the procedures that would satisfy the required methodological rigor. Case study can be seen to satisfy the three tenets of the qualitative method: describing, understanding, and explaining. The literature contains numerous examples of applications of the case study methodology. The earliest and most natural examples are to be found in the fields of Law and Medicine, where cases make up the large body of the student work. However, there are some areas that have used case study techniques extensively, particularly in government and in evaluative situations. The government studies were carried out to determine whether particular programs were efficient or if the goals of a particular program were being met. The evaluative applications were carried out to assess the effectiveness of educational initiatives. In both types of investigations, merely quantitative techniques tended to obscure some of the important information that the researchers needed to uncover. The body of literature in case study research is primitive and limited (Yin, 1994), in comparison to that of experimental or quasi-experimental research. The requirements and inflexibility of the latter forms of research make case studies the only viable alternative in some instances. It is a fact that case studies do not need to have a minimum number of cases, or to randomly select cases. The researcher is called upon to work with the situation that presents itself in each case. Case studies can be single or multiple-case designs, where a multiple design must follow a replication rather than sampling logic. When no other cases are available for replication, the researcher is limited to single-case designs. Yin (1994) pointed out that generalization of results, from either single or multiple designs, is made to theory and not to populations. Multiple cases strengthen the results by replicating the pattern-matching, thus increasing confidence in the robustness of the theory. Applications of case study methodology have been carried out in High-Risk Youth Programs (Yin, 1993) by several researchers. The effects of community-based prevention programs have been widely investigated using case methodology. Where the high risk youth studies assumed a single case evaluation, these studies have typically used a collection of cases as a multiple-case study. This has been true in the various substance abuse prevention programs that are community-based (Holder, 1987; Sabol, 1990; Yin, 1993). Numerous such studies sponsored by the U. S. General Accounting Office are distributed in the literature between Evans (1976) and Gopelrud (1990). These studies have gone beyond the quantitative statistical results and explained the conditions through the perspective of the actors. Thus case study evaluations can cover both process and outcomes, because they can include both quantitative and qualitative data. There are several examples of the use of case methodology in the literature. Yin (1993) listed several examples along with the appropriate research design in each case. There were suggestions for a general approach to designing case studies, and also recommendations for exploratory, explanatory, and descriptive case studies. Each of those three approaches can be either single or multiple-case studies, where multiple-case studies are replicatory, not sampled cases. There were also specific examples in education, and management information systems. Education has embraced the case method for instructional use. Some of the applications are reviewed in this paper. In exploratory case studies, fieldwork, and data collection may be undertaken prior to definition of the research questions and hypotheses. This type of study has been considered as a prelude to some social research. However, the framework of the study must be created ahead of time. Pilot projects are very useful in determining the final protocols that will be used. Survey questions may be dropped or added based on the outcome of the pilot study. Selecting cases is a difficult process, but the literature provides guidance in this area (Yin, 1989a). Stake (1995) recommended that the selection offers the opportunity to maximize what can be learned, knowing that time is limited. Hence the cases that are selected should be easy and willing subjects. A good instrumental case does not have to defend its typicality. Explanatory cases are suitable for doing causal studies. In very complex and multivariate cases, the analysis can make use of pattern-matching techniques. Yin and Moore (1988) conducted a study to examine the reason why some research findings get into practical use. They used a funded research project as the unit of analysis, where the topic was constant but the project varied. The utilization outcomes were explained by three rival theories: a knowledge-driven theory, a problem-solving theory, and a social-interaction theory. Knowledge-driven theory means that ideas and discoveries from basic research eventually become commercial products. Problem-solving theory follows the same path, but originates not with a researcher, but with an external source identifying a problem. The social-interaction theory claims that researchers and users belong to overlapping professional networks and are in frequent communication. Descriptive cases require that the investigator begin with a descriptive theory, or face the possibility that problems will occur during the project. Pyecha (1988) used this methodology to study special education, using a pattern-matching procedure. Several states were studied and the data about each states activities were compared to another, with idealized theoretic patterns. Thus what is implied in this type of study is the formation of hypotheses of cause-effect relationships. Hence the descriptive theory must cover the depth and scope of the case under study. The selection of cases and the unit of analysis is developed in the same manner as the other types of case studies. Case studies have been increasingly used in education. While law and medical schools have been using the technique for an extended period, the technique is being applied in a variety of instructional situations. Schools of business have been most aggressive in the implementation of case based learning, or active learning (Boisjoly DeMichiell, 1994). Harvard University has been a leader in this area, and cases developed by the faculty have been published for use by other institutions. The School of Business at Fairfield University has revised the curriculum so that in place of the individual longitudinal courses in the areas of Management, Marketing, Operations, Finance, and Information Systems, students take one course. That course is designed around cases that encompass those disciplines, but are presented in an integrated manner. The students are therefore made aware of the interrelatedness of the various disciplines and begin to think in terms of wider problems and solutions. Later courses add the international dimension to the overall picture. Case studies have been used to develop critical thinking (Alvarez, et al. , 1990). There are also interactive language courses (Carney, 1995), courses designed to broaden the students horizons (Brearley, 1990), and even for technical courses (Greenwald, 1991), and philosophical ones (Garvin, 1991). This investigation is a case study of the aspects of Information Technology that are related to client/server computing, the Internet, and the World Wide Web, at Fairfield University. Thus this paper examines issues that will expand the readers knowledge of case study methodology as it relates to the design and execution of such a study. Yin (1994) recommended the use of case-study protocol as part of a carefully designed research project that would include the following sections: Overview of the project (project objectives and case study issues) Field procedures (credentials and access to sites) Questions (specific questions that the investigator must keep in mind during data collection) Guide for the report (outline, format for the narrative) (Yin, 1994, p.64) The quintessential characteristic of case studies is that they strive towards a holistic understanding of cultural systems of action (Feagin, Orum, Sjoberg, 1990). Cultural systems of action refer to sets of interrelated activities engaged in by the actors in a social situation. The case studies must always have boundaries (Stake, 1995). Case study research is not sampling research, which is a fact asserted by all the major researchers in the field, including Yin, Stake, Feagin and others. However, selecting cases must be done so as to maximize what can be learned, in the period of time available for the study. The unit of analysis is a critical factor in the case study. It is typically a system of action rather than an individual or group of individuals. Case studies tend to be selective, focusing on one or two issues that are fundamental to understanding the system being examined. Case studies are multi-perspectival analyses. This means that the researcher considers not just the voice and perspective of the actors, but also of the relevant groups of actors and the interaction between them. This one aspect is a salient point in the characteristic that case studies possess. They give a voice to the powerless and voiceless. When sociological studies present many studies of the homeless and powerless, they do so from the viewpoint of the elite (Feagin, Orum, Sjoberg, 1991). Case study is known as a triangulated research strategy. Snow and Anderson (cited in Feagin, Orum, Sjoberg, 1991) asserted that triangulation can occur with data, investigators, theories, and even methodologies. Stake (1995) stated that the protocols that are used to ensure accuracy and alternative explanations are called triangulation. The need for triangulation arises from the ethical need to confirm the validity of the processes. In case studies, this could be done by using multiple sources of data (Yin, 1984). The problem in case studies is to establish meaning rather than location. Designing Case Studies Yin (1994) identified five components of research design that are important for case studies: A studys questions Its propositions, if any Its unit(s) of analysis The logic linking the data to the propositions The criteria for interpreting the findings (Yin, 1994, p. 20). The studys questions are most likely to be how and why questions, and their definition is the first task of the researcher. The studys propositions sometimes derive from the how and why questions, and are helpful in focusing the studys goals. Not all studies need to have propositions. An exploratory study, rather than having propositions, would have a stated purpose or criteria on which the success will be judged. The unit of analysis defines what the case is. This could be groups, organizations or countries, but it is the primary unit of analysis. Linking the data to propositions and the criteria for interpreting the findings are the least developed aspects in case studies (Yin, 1994). Campbell (1975) described pattern-matching as a useful technique for linking data to the propositions. Campbell (1975) asserted that pattern-matching is a situation where several pieces of information from the same case may be related to some theoretical proposition. His study showed, through pattern-matching, that the observed drop in the level of traffic fatalities in Connecticut was not related to the lowering of the speed limit. His study also illustrated some of the difficulties in establishing the criteria for interpreting the findings. Construct validity is especially problematic in case study research. It has been a source of criticism because of potential investigator subjectivity. Yin (1994) proposed three remedies to counteract this: using multiple sources of evidence, establishing a chain of evidence, and having a draft case study report reviewed by key informants. Internal validity is a concern only in causal (explanatory) cases. This is usually a problem of inferences in case studies, and can be dealt with using pattern-matching, which has been described above. External validity deals with knowing whether the results are generalizable beyond the immediate case. Some of the criticism against case studies in this area relate to single-case studies. However, that criticism is directed at the statistical and not the analytical generalization that is the basis of case studies. Reliability is achieved in many ways in a case study. One of the most important methods is the development of the case study protocol. Case studies can be either single or multiple-case designs. Single cases are used to confirm or challenge a theory, or to represent a unique or extreme case (Yin, 1994). Single-case studies are also ideal for revelatory cases where an observer may have access to a phenomenon that was previously inaccessible. Single-case designs require careful investigation to avoid misrepresentation and to maximize the investigators access to the evidence. These studies can be holistic or embedded, the latter occurring when the same case study involves more than one unit of analysis. Multiple-case studies follow a replication logic. This is not to be confused with sampling logic where a selection is made out of a population, for inclusion in the study. This type of sample selection is improper in a case study. Each individual case study consists of a whole study, in which facts are gathered from various sources and conclusions drawn on those facts. Yin (1994) asserted that a case study investigator must be able to operate as a senior investigator during the course of data collection. There should be a period of training which begins with the examination of the definition of the problem and the development of the case study design. If there is only a single investigator, this might not be necessary. The training would cover aspects that the investigator needs to know, such as: the reason for the study, the type of evidence being sought, and what variations might be expected. This could take the form of discussion rather than formal lectures. A case study protocol contains more than the survey instrument, it should also contain procedures and general rules that should be followed in using the instrument. It is to be created prior to the data collection phase. It is essential in a multiple-case study, and desirable in a single-case study. Yin (1994) presented the protocol as a major component in asserting the reliability of the case study research. A typical protocol should have the following sections: An overview of the case study project (objectives, issues, topics being investigated) Field procedures (credentials and access to sites, sources of information) Case study questions (specific questions that the investigator must keep in mind during data collection) A guide for case study report (outline, format for the narrative) (Yin, 1994, p. 64). The overview should communicate to the reader the general topic of inquiry and the purpose of the case study. The field procedures mostly involve data collection issues and must be properly designed. The investigator does not control the data collection environment (Yin, 1994) as in other research strategies; hence the procedures become all the more important. During interviews, which by nature are open ended, the subjects schedule must dictate the activity (Stake, 1995). Gaining access to the subject organization, having sufficient resources while in the field, clearly scheduling data collection activities, and providing for unanticipated events, must all be planned for. Case study questions are posed to the investigator, and must serve to remind that person of the data to be collected and its possible sources. The guide for the case study report is often neglected, but case studies do not have the uniform outline, as do other research reports. It is essential to plan this report as the case develops, to avoid problems at the end. Stake (1995), and Yin (1994) identified at least six sources of evidence in case studies. The following is not an ordered list, but reflects the research of both Yin (1994) and Stake (1995): Documents Archival records Interviews Direct observation Participant-observation Physical artifacts Documents could be letters, memoranda, agendas, administrative documents, newspaper articles, or any document that is germane to the investigation. In the interest of triangulation of evidence, the documents serve to corroborate the evidence from other sources. Documents are also useful for making inferences about events. Documents can lead to false leads, in the hands of inexperienced researchers, which has been a criticism of case study research. Documents are communications between parties in the study, the researcher being a vicarious observer; keeping this in mind will help the investigator avoid being misled by such documents. Archival documents can be service records, organizational records, lists of names, survey data, and other such records. The investigator has to be careful in evaluating the accuracy of the records before using them. Even if the records are quantitative, they might still not be accurate. Interviews are one of the most important sources of case study information. There are several forms of interviews that are possible: Open-ended, Focused, and Structured or survey. In an open-ended interview, key respondents are asked to comment about certain events. They may propose solutions or provide insight into events. They may also corroborate evidence obtained from other sources. The researcher must avoid becoming dependent on a single informant, and seek the same data from other sources to verify its authenticity. The focused interview is used in a situation where the respondent is interviewed for a short period of time, usually answering set questions. This technique is often used to confirm data collected from another source. The structured interview is similar to a survey, and is used to gather data in cases such as neighborhood studies. The questions are detailed and developed in advance, much as they are in a survey. Direct observation occurs when a field visit is conducted during the case study. It could be as simple as casual data collection activities, or formal protocols to measure and record behaviors. This technique is useful for providing additional information about the topic being studied. The reliability is enhanced when more than one observer is involved in the task. Glesne and Peshkin (1992) recommended that researchers should be as unobtrusive as the wallpaper. Participant-observation makes the researcher into an active participant in the events being studied. This often occurs in studies of neighborhoods or groups. The technique provides some unusual opportunities for collecting data, but could face some major problems as well. The researcher could well alter the course of events as part of the group, which may not be helpful to the study. Physical artifacts can be tools, instruments, or some other physical evidence that may be collected during the study as part of a field visit. The perspective of the researcher can be broadened as a result of the discovery. It is important to keep in mind that not all sources are relevant for all case studies (Yin, 1994). The investigator should be capable of dealing with all of them, should it be necessary, but each case will present different opportunities for data collection. There are some conditions that arise when a case researcher must start data collection before the study questions have been defined and finalized (Yin, 1994). This is likely to be successful only with an experienced investigator. Another important point to review is the benefit of using rival hypotheses and theories as a means of adding quality control to the case study. This improves the perception of the fairness and serious thinking of the researcher. Analyzing Case Study Evidence This aspect of the case study methodology is the least developed and hence the most difficult. As a result, some researchers have suggested that if the study were made conducive to statistical analysis, the process would be easier and more acceptable. This quantitative approach would be appealing to some of the critics of the case study methodology. However not all case studies lend themselves to this type of analysis. Miles and Huberman (1984) suggested analytic techniques such as rearranging the arrays, placing the evidence in a matrix of categories, creating flowcharts or data displays, tabulating the frequency of different events, using means, variances and cross tabulations to examine the relationships between variables, and other such techniques to facilitate analysis. There must first be an analytic strategy, that will lead to conclusions. Yin (1994) presented two strategies for general use: One is to rely on theoretical propositions of the study, and then to analyze the evidence based on those propositions. The other technique is to develop a case description, which would be a framework for organizing the case study. Lynd conducted a widely cited Middletown study in 1929, and used a formal chapter construct to guide the development of the analysis. In other situations, the original objective of the case study may help to identify some causal links that could be analyzed. Pattern-matching is another major mode of analysis. This type of logic compares an empirical pattern with a predicted one. Internal validity is enhanced when the patterns coincide. If the case study is an explanatory one, the patterns may be related to the dependent or independent variables. If it is a descriptive study, the predicted pattern must be defined prior to data collection. Yin (1994) recommended using rival explanations as pattern-matching when there are independent variables involved. This requires the development of rival theoretical propositions, but the overall concern remains the degree to which a pattern matches the predicted one. Yin (1994) encouraged researchers to make every effort to produce an analysis of the highest quality. In order to accomplish this, he presented four principles that should attract the researchers attention: Show that the analysis relied on all the relevant evidence Include all major rival interpretations in the analysis Address the most significant aspect of the case study Use the researchers prior, expert knowledge to further the analysis Stake (1995) recommended categorical aggregation as another means of analysis and also suggested developing protocols for this phase of the case study to enhance the quality of the research. He also presented ideas on pattern-matching along the lines that Yin (1994) presented. Runkel (1990) used aggregated measures to obtain relative frequencies in a multiple-case study. Stake (1995) favored coding the data and identifying the issues more clearly at the analysis stage. Eisner and Peshkin (1990) placed a high priority on direct interpretation of events, and lower on interpretation of measurement data, which is another viable alternative to be considered.

St. Anselm of Canterbury Essay -- essays research papers

In the following I intend to prove that the ontological argument is in and of itself, insufficient in proving that God exists. There are a few problems with the argument that I will be discussing in detail in an attempt to illustrate exactly why ‘The Ontological Argument’ is unsatisfactory. The Definition of ‘Greater’ St. Anselm of Canterbury defined God as â€Å"that-than-which-a-greater-cannot-be-thought† (Bailey, 2002). The problem with this definition is that the term ‘greater’ is surely up for interpretation. The term ‘greater’ requires a comparison between itself and one or more things, which could pose a problem for Anselm’s argument; however Professor Thorp states that the only difference between these two things is that one exists in the mind, while the other exists in the mind and in reality. If we understand that a God that exists in the mind and in reality is greater than one that merely exists in the mind then we must understand that God exists. We need to examine this, however, much more closely to discover the problem with this statement; and I will do so using an example given to us by Professor Thorp. During the discussion of the Ontological argument, the professor asked us whether we would prefer ‘a real beer’ on a hot day, or ‘an imaginary beer’. The real one is preferable and it is greater than the imaginary one. But what type of beer was each person in the class imagining? There are multiple brands of beer available and it is quite possible that many people throughout the room were picturing a different beer. Which real beer was greater? This is not a question that I can answer because it lies in a matter of preference. We experience a similar problem when we think of ‘a real God’, and ‘an imaginary God’. Perhaps I perceive God in a specific way, and to me, he is a being â€Å"that-than-which-none-greater-can-be-thought† (Bailey, 2002). This proves that my perception of God exists for me, but what of everyone else’s perceptions of God? We must recognize a problem with this, in that everyone may perceive a ‘greater’ God in a very different way. We know that there are different perceptions of the ‘greater’ God because we have evidence of it in the various religions and the contrasting views of their God. With this in mind, all Anselm is able to prove with his argument is that every person’s individual perception of God does exist, but no on... ...comprehend or imagine Him. Because of this, God cannot be ‘thought’, he can merely be defined as infinite. Since we cannot comprehend God in our thought, he no longer exists in our minds as an entity, but merely as a definition. Thus, since he no longer exists in our minds, there is no obligation to understand that he must exist in reality; an implication made in Anselm’s argument.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Anselm’s Ontological argument is insufficient in proving that God exists. For the reasons above and further objections from various philosophers, I do not believe that Anselm can argue the existence of God with his current premises as they stand. I must say that despite my objections to Anselm’s Ontological argument, I respect his work done, and the tremendous thought process that must have occurred to conjure up such a case as was presented. It is definitely much easier to prove a mortal wrong than it is to prove the existence of something so great and so unknown. Anselm’s Ontological argument while intriguing does have some problems in my opinion that take away from its validity; but needless to say it is in and of itself quite astounding.

Deconstruction in J.M. Coetzee’s Disgrace

Being a post-colonial text, J. M. Coetzee’s Disgrace is a multi-layered narrative of deconstruction- from the language, the characters and their values, the setting and the context. Deconstruction is a strategy employed by J. M. Coetzee to present and critique the effects of colonialism within the South African post-apartheid context. After the removal of the apartheid system that has hounded South Africa for the longest time, one would expect a complete turnabout in values, beliefs and practice amongst the people and the community-both rural and urban.Coetzee subverts this expectation by depicting a post-apartheid life and existence that is still, in the metaphorical sense, imprisoned and clinging to the misery and antiquity of the colonial past. David Lurie, the lead character and the narrator in the literary text is a man who has drunk and gobbled many of life’s bitter disappointments- from his unfulfilled teaching days in a university turned technical college to his demotion as a caretaker of terminally ill animals in his daughter’s farm.Coetzee deconstructs David’s character by portraying him as a man still shackled from his own vices and values as well as from the old world that boxed and created him instead of a free, happy man in a post-apartheid environ(ment). On another level, David’s character undergoes deconstruction by being depicted as a Caucasian South African male in a time and place (post-apartheid) where the whites do hold as much power as they once used to. In terms of language, Coetzee’s prose is anti-realist. Truth and meaning in his narrative are not laid bare explicitly; it is covered and laced with undertones, symbols and irony.The novel also deconstructs â€Å"the romantic pastoral prototype of the farm novel tradition through its portrayal of a lonely and desolate farm, and through the narrator Magda, a lonely spinster suffocated by an environment of intellectual and spiritual drought† ( Subverting the pastoral: the transcendence of space and place in J. M. Coetzee's Disgrace 2006). Coetzee transforms the farm which often conjures up an image of one that is idyllic and laidback into a setting that is marred with unhappiness and disillusionment.

Ethnic Foodways or Ethnic Globalization Essay

Globalization has indeed been a global osmosis of culture that includes dress habits, language and food habits. The melting pot that is often used as an analogy for globalization best describes what happens when several different cultures meet. Each adds its own flavor to local culture and what results is an amalgam that includes elements from all contributing cultures. Globalization results in the movement of factors of production through capital transfers and labor migration. Migration gives rise to a transfer of cultural elements. What has been seen in the recent past is the fast paced globalization through the multi national firm. In the cultural context, this global mix has been seen in the migration of culture through large clothing chains, retail supermarkets and food products. Phillips (2006) talks of how the increase in labor mobility has helped cuisine and food transfer across borders. In the nineteenth century itself, the movement of indentured labor for work in plantations in the West Indies and the Pacific enabled the movement of food habits from Asia to North America. Even earlier it was African cuisine that had gained a foothold in the US. The multinational food chain now ensures that similar food is available in each of its outlets across the world. MacDonald’s USP is indeed that the Big Mac would taste the same in each of its 25000 locations across the world. However, with this standardization is also the need to cater to local markets and take advantage of the local raw material to satisfy local tastes. Sometimes large multinational food chains have to localize to be able to gain larger market shares and that is the reason. In other cases, local tradition dictates nutrients that restaurants may choose and may avoid. Hence the MacDonald outlet in the Middle East does not serve ham while it avoids beef in India. Therefore one can see that globalization results in a two way exchange of cultures by way of food habits and tastes.

The Yellow Turban Rebellion in China

The Yellow Turban Rebellion in China The people of Han China reeled under a crushing tax load, famine, and floods, while at court, a group of corrupt eunuchs wielded power over the decadent and hapless Emperor Ling.  Chinas government demanded ever more taxes from the peasantry to fund fortifications along the Silk Road, and also to build sections of the Great Wall of China in order to fend off nomads from the Central Asian steppes. As natural and barbarian disasters plagued the land, the followers of a Taoist sect led by Zhang Jue decided that the Han Dynasty had lost the Mandate of Heaven.  The only cure for Chinas ills was a rebellion and the establishment of a new imperial dynasty.  The rebels wore yellow scarves wrapped around their heads - and the Yellow Turban Rebellion was born. The Origins of the Yellow Turban Rebellion Zhang Jue was a healer and some said a magician.  He spread his messianic religious ideas through his patients; many of them were poor farmers who received free treatments from the charismatic doctor. Zhang used magical amulets, chanting, and other practices derived from Taoism in his cures. He preached that in the year 184 CE, a new historical era would begin known as the Great Peace. By the time the rebellion broke out in 184, Zhang Jues sect had 360,000 armed followers, mostly from the peasantry but also including some local officials and scholars.   Before Zhang could set his plan into motion, however, one of his disciples went to the Han capital at Luoyang and revealed the plot to overthrow the government. Everyone in the city identified as a Yellow Turban sympathizer was executed, more than 1,000 of Zhangs followers, and court officials marched out to arrest Zhang Jue and his two brothers. Hearing the news, Zhang ordered his followers to start the uprising immediately. An Eventful Uprising Yellow Turban factions in eight different provinces rose up and attacked government offices and garrisons. Government officials ran for their lives; the rebels destroyed towns and seized armories.  The imperial army was too small and incompetent to deal with the wide-spread threat posed by the Yellow Turban Rebellion, so local warlords in the provinces built their own armies to put down the rebels.  At some point during the ninth month of the year 184, Zhang Jue died while leading the defenders of the besieged city of Guangzhong.  He likely died of disease; his two younger brothers died in battle with the imperial army later that year. Despite the early deaths of their top leaders, smaller groups of the Yellow Turbans continued to fight for another twenty years, whether motivated by religious fervor or simple banditry. The most important consequence of this on-going popular rebellion was that it exposed the weakness of the central government and led to the growth of warlordism in different provinces around China.  The rise of warlords would contribute to the coming civil war, the dissolution of the Han Empire, and the beginning of the Three Kingdoms period.   In fact, General Cao Cao, who went on to found the Wei Dynasty, and Sun Jian, whose military success paved the way for his son to found the Wu Dynasty, both gained their first military experience fighting against the Yellow Turbans. In a sense, then the Yellow Turban Rebellion spawned two of the three kingdoms.  The Yellow Turbans also allied themselves with another group of major players in the downfall of the Han Dynasty - the Xiongnu. Finally, the Yellow Turban rebels have served as role models for Chinese anti-government movements through the ages, including the Boxer Rebels of 1899-1900 and the modern-day Falun Gong movement.

Chile, mi pais de acogida! Essays - Latin American Culture

Chile, mi pais de acogida! Essays - Latin American Culture Chile, mi pais de acogida! Soy una estudiante francesa que vive en Caen, una pequena ciudad del norte de Francia. Este semestre, estudio en Vina del mar, en Chile. Entonces voy a hablar de las diferencias entre Francia y Chile. En Vina del mar, los precios son aproximadamente los mismos que los de las pequenas ciudades de Francia. Entonces, en Paris es mas caro pero en las otras ciudades como Caen, los precios son los mismos. Creo que hay algunos restaurantes aqui que son mas caros que en Francia. Pero, pienso que es porque somos en una ciudad turistica. En otras partes de Chile, creo que los precios son mas bajitos. Las estaciones son inversas a diferencia de aquellos en el hemisferio norte. Entonces, en Francia, es el fin del invierno cuando aqui es el fin del verano. Es por eso que, por el momento, es muy agradable saber que los franceses tienen frio mientras que estoy tomando el sol. Ademas, hay mas ayuda mutua en Chile. En la calle, si no encuentro mi camino, se que puedo preguntar a otras personas y que van a ayudarme. Una vez, he visto a un hombre que tenia dificultades para cruzar el paso subterraneo peatonal. Una persona le ayudaba sin problema. Pienso que en Francia las personas son un poco mas egoistas. En Chile, las personas son mas abiertas y generosas. Aqui, hay pequenas profesiones que no hay en Francia. Por ejemplo, hay personas que pueden limpiar tu coche, personas que hacen pequenos espectaculos delante de los semaforos o en los supermercados, personas que ponen tus productos en bolsas de plastico. En Francia no existe este tipo de trabajo. Pienso que esta bien para las personas que son necesitadas. La comida de aqui es diferente del de Francia. Las frutas y hortalizas son muy buenas en Chile. Tambien me gustan las chorrillanas y las empanadas. Pero, en general, la comida me parece mucho mas grasosa que en Francia. En Francia la cocina es mas fina. Para concluir, me gusta mucho estudiar en el extranjero. Es interesante ver las diferentes culturas de los paises y aprender los idiomas. El proximo ano, viajare en un pais anglofono para practicar mi ingles tambien. En mi futuro, me encantaria descubrir muchos paises y culturas. Me gustaria mucho!

9 Huge Mistakes Youre Making When Negotiating Salary

9 Huge Mistakes Youre Making When Negotiating Salary You might think landing a job is most of the battle. But don’t forget, over the course of negotiations- and indeed your whole career- there are a few mistakes you can make that will stick you with a low salary, and sometimes for a lot longer than you might expect. So when you’re negotiating a new offer, remember not to fall victim to any of the following mistakes, and make sure you set yourself up to earn as much as you are worth!1. Not NegotiatingPerhaps the worst negotiation mistake you can make is not to negotiate at all. Don’t just accept whatever offer you receive. You’ll be settling for less- even than they would expect to end up paying you. This can have immediate and long-term impact on your finances. Figure out your work before you get an offer. Then negotiate. It’s standard practice and will be expected of you, no matter whether or not you hate the process.2. Not Providing a RangeTake your total salary, plus perks, from three years ago, ve rsus your total salary today, plus perks, and you have a range! Then visit a site like Glassdoor or Payscale to figure out what other professionals in your desired position are making. If you have the experience and skill set to justify being compensated at their level, then you can extend your range a little higher than your current compensation. But be prepared to show why you deserve this.3. Winging ItYou will not be in a strong position to negotiate salary if you’ve half-assed your resume and the interview process. Make sure there’s a solid paper trail documenting your strengths and talents, showing how competitive a candidate you are, and also make sure you’ve made a solid and impressive first impression. This will net you a higher first offer, and also give you more leeway to negotiate even higher. Remember: the negotiation process is more about your value being rewarded than it is about your need or greed.4. Negotiating Too SoonThe moment you get the offe r is not the time to counter. Get all the details about your compensation- including non-salary benefits, PTO, etc. Then sit on it for a while. Thank them, politely ask for a day or two to review the details, and then get back to them with a respectful, reasonable counter.5. Revealing Your Bottom LineDon’t give hirers the upper hand by letting them know the number you would take to accept the job and end negotiations. They may very well offer you just that- and then where would you be? It would be impossible for you to negotiate up from there.6. Not Doing Your HomeworkYou can’t make claims about industry standards or your value in the market if you haven’t done thorough research. Don’t get caught out saying something that won’t smell right to professionals in your industry. In other words: don’t fake anything. Be prepared to back all things up with hard fact- including your own skill and experience.7. Flubbing the CounterYou get to the negot iation phase- either over email, phone, or in person- and you thank them for their generous offer, then make your counter, ending with a number or range that would be more acceptable to you. STOP THERE. Don’t keep blabbing on. Leave the ball in their court, then take it from there depending on what you get for a response. Remember not to ask for wildly too much- that can get you laughed right out of the running. And don’t forget you can also negotiate non-salaried perks. Don’t leave the table until you feel really excited and honored to accept the job- or so certain that you couldn’t make it work that you have to decline (knowing, of course, that you’ve made a good faith effort to get what you deserve).8. Taking Things PersonallyNegotiations are business. Not personal. Don’t get offended if they don’t go exactly as you wanted. Or if you get push-back on your requests. Remember, this is business. You need to behave that way. Keep it pr ofessional and keep your ego and your bruised feelings out of the room.9. Not Getting Your Final Offer in WritingYou get the offer you wanted. Great! But it’s not real, or binding in any way, unless you get it in writing. If an employer balks at your request to have this formalized, then that might be a big red flag that you should try your luck at some other, better-behaved company.And remember, developing a strategy to answering the desired salary question is a big step towards determining how much money you will be paid, so make sure to go over answering that question in detail, in addition to everything mentioned in this article.

Discuss the claim that to understand any one citys fortunes fully it Essay

Discuss the claim that to understand any one citys fortunes fully it is necessary to follow the interconnections between cities - Essay Example The images of cities bring forth bustling streets, unending streams of vehicles, people jostling with each other for space and attention, faceless groups of people hurrying either to work or home, crowded markets and unruly by lanes, libraries, hospitals, hotels, museums, traffic, cathedrals and other religious places, skyscrapers and underground and on ground railways and more than anything else, lighting and brightness all over. We also notice that mostly people are lonely in the crowd, lost in their own thoughts and hurrying towards the next goal. Very rarely one could see the heartening sights of people walking companionably together in groups. Cities are not accidental happenings. They are created for a purpose, the result of a long and interesting evolution of the landscape. They must have started as the centres of a certain activity and with additional activities growing around it, they have formed into present cities. Cities do not spring up without reason. There always exist economical, social, geographical or historical reasons for their materialising from nowhere. They are the focussed places of social, cultural and geographical mass. They are the centres of many activities and had been the hubs of certain bustling, continuous activity for a long time, and hence, they have grown into cities. All of us have our own pleasant and unpleasant experiences of the cities. Intensity of urban life differs from place to place, from city to city. Every city differs from another if urban elements and social significance are taken into account. Cities could be awe-inspiring for a villager. A city could be romanticised, revered, mystified, or even feared. Every city has its own individuality. It has even its own skyline from which usually it is recognised. Famous cities have popular skylines, and their recognition is instantaneous. "From this perspective, city life is distinctive because its scale is larger and activities more intense than anywhere else," (p.6). Massey et al are of the opinion that smaller cities like Kuala Lumpur try to rival with bigger cities like New York by having impressive skyscrapers, even though skyscraper like announcements are unnecessary for a city. There are arguments that cities with impressive skyscrapers also have people begging on the streets and slums full of misery. Every city is not a planned city. Most of the cities are grown in a rather uncontrolled way adjusting itself to the geography and the main activity of the city. Some of these cities, though rather cumbersome, are a few of the most attractive cities in the world. City is a hub of activity and hence, centre of many connections and networks. These connections could be of any kind and mode; social, economical, cultural, religious, historical, political, commercial, business-oriented or even connected with tourism or transport. It could be connected with a port where goods are loaded and unloaded and around the activities of the port, a city could have been built. It could be connected with the movements of the army, navy or a business centre, famous for certain trade. It could be housing one of the major businesses and the city might have been built around this particular business. There are thousands and thousands of possibilities. Today, new cities are springing up on the ruins of

Retail Business and Consumer Environment Essay Example | Topics and Well Written Essays - 2750 words

Retail Business and Consumer Environment - Essay Example Success in retailing is the result of sensitive perceptive decisions that require imaginative and innovative techniques. For example, as the American economy continued in its slow down a few years ago, many retailers were afraid to embrace new ideas. Instead of using their creative power to increase their competitive advantage, these retailers either just continued doing things as they always had done them, cut costs without thinking about the impact on customer satisfaction or copied what their competitors were doing† (Dunne 2008). These decisions are complicated by business environment because of low margins, high capital requirements, often or cyclical consumer demands. In recent years, retailers have turned to new information technologies to fight with these challenges. Indeed, the latest generation of a retail application has become and continues to be, a game changer in this industry. Studies show that those retailers deploying advanced technology solutions realize signif icant shareholder returns on average, with the help of technology-driven improvements like enhanced customer loyalty, efficient sales channels, advanced supply chain operations, and agiler merchandising. â€Å"Three fundamental and interrelated changes have occurred in European retail environment: first, the balance of power has shifted along the distribution channels from the manufactures to the retailers, secondly, traditional independent retailers and cooperatives have lost market share to multiple chain organizations, thirdly, markets have become increasingly consolidated and concentrated† (Gilbert 2003). Long-term business success is becoming more complex, for example, new technologies make it possible for companies to compete for customers in multiple sales channels and venues, including those on the phone, and on the web, allowing retailers to gain market share. The retails need the capacity to serve customers anytime and anywhere. Here is the relevance of the study of retail business and the consumer environment. Starting with a brief description of the retail business, going through the political, socio, economic, cultural factors affecting consumption patterns by applying appropriate theories of retail development in needed portions, it further explains the implication of retailing in urban development, and how advanced technologies can help retail industry to gain market share. When one observes the international retail market, for example, in the United States, the retail industry originated from a community shop where people would shop for necessity items. Single general stores were common because of limited population, and the disconnectivity of the people within the city. Later societies advanced with population increase went to big cities, and new technologies enabled to enhance interconnectivity among people, and easy communication between distanced cities gave further opportunities for the formation of specialty stores. In the current scenario, the US retail industry is booming. With this exponential growth of retail business across the nation can in the very near future come into the category of infrastructure industry. Adaptation is an important fact in the retail industry as trends in society, a taste of various products and people’s demand are more. In business to business market, managing customer relations and fulfilling their need is a vital factor. A customer is the main focus.

Creating Your Own Start-up Business Assignment Example | Topics and Well Written Essays - 1000 words

Creating Your Own Start-up Business - Assignment Example In the very beginning the business would be limited to importing homemade ups namely bed covers, curtains, pillow covers, quilts, towels and the like. The market for such goods in the United States is not only large but rather diverse because consumers from all buying strata are present in the market. Moreover the market’s large size means that imported textile products have a low chance of getting stuck up in warehouses because there are not enough right kinds of buyers (Arthur and Sheffrin). Another advantage in starting such a business could be local contacts in the South East Asian region who could supervise the manufacturing and supply efforts. 2. Business Structure Preferably the business would have a centralized buying office in the United States close to a major port which would help in dealing with incoming supplies and custom clearance for imported goods. Moreover the business would possess overseas buying offices in the South East Asian region typically located in I ndia, Bangladesh, Sri Lanka and Pakistan (Haider). Given the restriction of funds initially the business would have only one overseas office in India to supervise the manufacturing and supply efforts. Within the United States the business would have a CEO supervising local distribution along with a small staffing. The overseas offices would have no more than two employees to oversee the entire manufacturing to ensure quality and to report delays in a timely fashion. 3. Relevance of Skill Set and Background Being a business major background would help me to focus on business areas that matter most for example I would prefer to spend money initially on surveys and questionnaires to determine market demand rather than importing blindly. Also my credentials with finance would allow me to keep a close watch over the budget to see if the business might overrun its estimated targets. Such an effort is all the more critical initially because squandering money in the beginning would be easy and would leave the business high and dry. Similarly my background in business studies would allow me to market my products more effectively as I would try to hit target market segments only instead of trying to subdue the entire market. Another major advantage that would allow me to develop this business more effectively is a contact in India who is already involved in shipping textile goods to the United States. My contact in India would be able to help me with his expertise in supervising manufacturing one on one and would also be able to ensure quality at the very first step in the supply chain. 4. Offered Services As mentioned before the business would initially offer homemade up textiles only but later as the business expands it will include garments and apparel as well. For the initial homemade ups market the business would provide a large variety of designs and styles that have been manufactured and packaged outside the United States. When the goods have been imported to the United States they will be distributed throughout the nation by the business using a complete supply chain mechanism that ensures adequate stock levels at all times. Overall the business would be offering a comprehensive supply chain mechanism for textile goods (Joshi). 5. Target Markets In order to start the business the market segments that would be most desirable to deal with are the lower and middle spending tier segments. Though there is rampant competition in either market segment but the

English Essay Example | Topics and Well Written Essays - 750 words - 1

English - Essay Example The rapid rate that our sea levels have been raising at has given many countries the dangers as it could wipe them off the world map that we know today, like the Caribbean. The people of the Caribbean have been trying to fight this problem over many years and scientists say by the year 2100, the Caribbean will no longer be a part of the world map. I think it will be the next atlantes this raising sea levels will also affect and scare many other countries like the Philippines, Indonesia and Bangladesh as they are very close to the sea levels and may also be joining the Caribbean. Also these raising sea levels have been causing tsunamis and other natural disasters due to the changing climate and sea levels. Global warming has many effects; one of these major effects is the Ozone hole which has many effects that have slowly been destroying our planet without our knowing, but thanks to the advanced technology of today, we have been able to notice theses problems and effects but it is too late, this Ozone hole especially affected Antarctica as the ice is melting which increased the sea levels affecting many countries and leading to their destruction. The increase in the climate has lead to the death of many penguins and their existence is linked to the polar bears. We have been destroying their homes and we might be the reason for their extinction, if we keep walking the path that we are walking today. Moreover, the organisms living in Antarctica have also been dying rapidly due to the fast climate change. Not only that but the effects of global warming have increased the rates of diseases especially skin cancer due to the UV rays from the sun as the Ozone hole is widening and as it is the only protection for us from these harmful rays which are bouncing back a large percentage of these rays, however it no longer exists in some areas of the world and is thinning at other areas. Pollution has been increasing over the years, especially the air pollution form cars, fac tories and green houses due to CO2 emissions which has many effects on people especially the new born and the elderly. Asthma has been rapidly increasing among us and we are starting to see it as a normal illness but indeed this is a man-made illness due to the air pollution that we have created which is affecting our children and the people at large. In conclusion, air pollution is raising the sea levels and the hole in our Ozone layer is a problem that we have created. The dying animals and the melting ice in Antarctica are the effects of the problem that we have created as we are killing the big blue inch by inch everyday and we are killing ourself as well. I ask everyone who reads this paper to please stop killing our planet and at least try to reduce the pollution in some

Transport Operations (Shipping) Essay Example | Topics and Well Written Essays - 2000 words - 1

Transport Operations (Shipping) - Essay Example At the same time, intermodal transport refers to a system of transport where by more than one mode of transport is used to move the same loading unit in an integrated way. This paper will critically analyse how short sea shipping may influence multimodal and intermodal transport planning. Multimodal transport contains a chain of process and steps such as multiple storage and handling stages which require a thorough control. Hence, this mode of transport will not be effective if various phases of the transport are not controlled properly. As Devia (2008) points out, the main difficulty associated with the carriage of goods is that there is no international regime in force regarding various modes of transport. As a result of this lack of uniformity in regulation, the determination of the law depends on a specific transport process when different modes of transport are deployed. As Sturley (2007) reminds, there may arise some problems in the transport of goods between countries located at different continent if the goods in transit are damaged. In such cases, it is very difficult to identify the places or stages where the damages occurred so that the liability of the carrier varies in relation to the court where he is sued. The absence of a unified law for the multimoda l transport of goods caused the emergence of some regional, sub regional and national regulations, which in turn caused great difficulties for the international transport of goods. Similarly, intermodal transport systems face different types of threats from terrorists. From different experiences, it has been observed that railroad freight is extremely vulnerable to terrorist attacks. In addition, issues associated with modular service offerings, transport chain coordination, and network technologies impinge on the scope of intermodal transport systems. In short, it is necessary to establish well planned multimodal and intermodal

English Essay Example | Topics and Well Written Essays - 750 words - 1

English - Essay Example The rapid rate that our sea levels have been raising at has given many countries the dangers as it could wipe them off the world map that we know today, like the Caribbean. The people of the Caribbean have been trying to fight this problem over many years and scientists say by the year 2100, the Caribbean will no longer be a part of the world map. I think it will be the next atlantes this raising sea levels will also affect and scare many other countries like the Philippines, Indonesia and Bangladesh as they are very close to the sea levels and may also be joining the Caribbean. Also these raising sea levels have been causing tsunamis and other natural disasters due to the changing climate and sea levels. Global warming has many effects; one of these major effects is the Ozone hole which has many effects that have slowly been destroying our planet without our knowing, but thanks to the advanced technology of today, we have been able to notice theses problems and effects but it is too late, this Ozone hole especially affected Antarctica as the ice is melting which increased the sea levels affecting many countries and leading to their destruction. The increase in the climate has lead to the death of many penguins and their existence is linked to the polar bears. We have been destroying their homes and we might be the reason for their extinction, if we keep walking the path that we are walking today. Moreover, the organisms living in Antarctica have also been dying rapidly due to the fast climate change. Not only that but the effects of global warming have increased the rates of diseases especially skin cancer due to the UV rays from the sun as the Ozone hole is widening and as it is the only protection for us from these harmful rays which are bouncing back a large percentage of these rays, however it no longer exists in some areas of the world and is thinning at other areas. Pollution has been increasing over the years, especially the air pollution form cars, fac tories and green houses due to CO2 emissions which has many effects on people especially the new born and the elderly. Asthma has been rapidly increasing among us and we are starting to see it as a normal illness but indeed this is a man-made illness due to the air pollution that we have created which is affecting our children and the people at large. In conclusion, air pollution is raising the sea levels and the hole in our Ozone layer is a problem that we have created. The dying animals and the melting ice in Antarctica are the effects of the problem that we have created as we are killing the big blue inch by inch everyday and we are killing ourself as well. I ask everyone who reads this paper to please stop killing our planet and at least try to reduce the pollution in some

Differing views of salvation Essay Example | Topics and Well Written Essays - 1000 words

Differing views of salvation - Essay Example The emphasis on soteriology in Revelation has mainly to do with perseverance. Christ is introduced as the one who died and was raised again. Christ is also the Lamb slain who calls the thirsty to drink of the water of life. This is shown in His anticipated second coming when He is expected to judge the world. As in (Revelation 1:7.). John’s book of revelation is unique because of its apocalyptic nature. In his book, he fosters a sense of crisis, proclamations and impending traumas, which reveals a sense of world-ending catastrophes, which are unimaginable. However, his visions are just to clarify the importance of the churches for God’s purposes in the world and push them to ensure the fulfillment of the purposes. The vision of a slain lamb (Revelation 5) standing victorious underscores that the congregations are supposed to walk faithfully with the one with the definitive triumph. Their suffering can only be saved by the one sitting on the throne because He has power t hat creates, sustains and also brings fulfillment. John talks about the beast, and their allies that conquer with retributive violence, force, deception and domination. It seems like an overwhelming situation that nobody can stand against, but those who follow the lamb wherever He goes come out conquerors (Revelation 14:4). These worship visions also remind believers that despite overwhelming plagues, they can overcome them because the God of Jesus remains the true God and the one worthy of their trust.

Swot Analysis and Weaknesses Essay Example for Free

Swot Analysis and Weaknesses Essay SWOT Analysis is an effective way of identifying your Strengths and Weaknesses, and of examining the Opportunities and Threats you face. How to use tool: To carry out a SWOT Analysis, write down answers to the following questions. Where appropriate, use similar questions: Strengths: * What advantages do you have? * What do you do well? * What relevant resources do you have access to? * What do other people see as your strengths? Consider this from your own point of view and from the point of view of the people you deal with. Dont be modest. Be realistic. If you are having any difficulty with this, try writing down a list of your characteristics. Some of these will hopefully be strengths! In looking at your strengths, think about them in relation to your competitors for example, if all your competitors provide high quality products, then a high quality production process is not strength in the market, it is a necessity. Weaknesses: * What could you improve? * What do you do badly? * What should you avoid? Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you do not see? Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon as possible. Opportunities: * Where are the good opportunities facing you? * What are the interesting trends you are aware of? Useful opportunities can come from such things as: * Changes in technology and markets on both a broad and narrow scale * Changes in government policy related to your field * Changes in social patterns, population profiles, lifestyle changes, etc. * Local Events A useful approach to looking at opportunities is to look at your strengths and ask yourself whether these open up any opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities by eliminating them. Threats: * What obstacles do you face? * What is your competition doing? * Are the required specifications for your job, products or services changing? * Is changing technology threatening your position? * Do you have bad debt or cash-flow problems? * Could any of your weaknesses seriously threaten your business? Carrying out this analysis will often be illuminating both in terms of pointing out what needs to be done, and in putting problems into perspective. You can also apply SWOT analysis to your competitors. This may produce some interesting insights! Example: A start-up small consultancy business might carry out the following SWOT analysis: Strengths: * We are able to respond very quickly as we have no red tape, no need for higher management approval, etc. * We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers * Our lead consultant has strong reputation within the market * We can change direction quickly if we find that our marketing is not working * We have little overhead, so can offer good value to customers Weaknesses: * Our company has no market presence or reputation * We have a small staff with a shallow skills base in many areas * We are vulnerable to vital staff being sick, leaving, etc. * Our cash flow will be unreliable in the early stages Opportunities: * Our business sector is expanding, with many future opportunities for success * Our local council wants to encourage local businesses with work where possible * Our competitors may be slow to adopt new technologies Threats: * Will developments in technology change this market beyond our ability to adapt? * A small change in focus of a large competitor might wipe out any market position we achieve The consultancy might therefore decide to specialize in rapid response, good value services to local businesses. Marketing would be in selected local publications, to get the greatest possible market presence for a set advertising budget. The consultancy should keep up-to-date with changes in technology where possible. Key points: SWOT analysis is a framework for analyzing your strengths and weaknesses, and the opportunities and threats you face. Â  This will help you to focus on your strengths, minimize weaknesses, and take the greatest possible advantage of opportunities available. SWOT analysis becomes a USELESS exercise if it is not extended TOWS where * the strengths are used to capitalize on opportunities and to counter threats, * the weaknesses are minimized using opportunities and both weaknesses and threats are avioided Carrying out a personal SWOT Analysis is an important step in finding life and career direction. Case Study-SWOT Analysis Wal-Mart Strengths * Wal-Mart is a powerful retail brand. It has a reputation for value for money, convenience and a wide range of products all in one store. * Wal-Mart has grown substantially over recent years, and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA). * The company has a core competence involving its use of information technology to support its international logistics system. For example, it can see how individual products are performing country-wide, store-by-store at a glance. IT also supports Wal-Marts efficient procurement. * A focused strategy is in place for human resource management and development. People are key to Wal-Marts business and it invests time and money in training people, and retaining a developing them. Weaknesses * Wal-Mart is the Worlds largest grocery retailer and control of its empire, despite its IT advantages, could leave it weak in some areas due to the huge span of control. * Since Wal-Mart sell products across many sectors (such as clothing, food, or stationary), it may not have the flexibility of some of its more focused competitors. * The company is global, but has has a presence in relatively few countries Worldwide. Opportunities * To take over, merge with, or form strategic alliances with other global retailers, focusing on specific markets such as Europe or the Greater China Region. * The stores are currently only trade in a relatively small number of countries. Therefore there are tremendous opportunities for future business in expanding consumer markets, such as China and India. * New locations and store types offer Wal-Mart opportunities to exploit market development. They diversified from large super centers, to local and mall-based sites. * Opportunities exist for Wal-Mart to continue with its current strategy of large, super centers. Threats * Being number one means that you are the target of competition, locally and globally. * Being a global retailer means that you are exposed to political problems in the countries that you operate in. * The cost of producing many consumer products tends to have fallen because of lower manufacturing costs. Manufacturing cost has fallen due to outsourcing to low-cost regions of the World. This has lead to price competition, resulting in price deflation in some ranges. Intense price competition is a threat. Wal-Mart Stores, Inc. is the worlds largest retailer, with $256.3 billion in sales in the fiscal year ending Jan. 31, 2004. The company employs 1.6 million associates worldwide through more than 3,600 facilities in the United States and more than 1,570 units . . . Case Study-SWOT Analysis Starbucks Strengths * Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year. * It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. * Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a respected employer that values its workforce. * The organization has strong ethical values and an ethical mission statement as follows, Starbucks is committed to a role of environmental leadership in all facets of our business. Weaknesses * Starbucks has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their innovation may falter over time. * The organization has a strong presence in the United States of America with more than three quarters of their cafes located in the home market. It is often argued that they need to look for a portfolio of countries, in order to spread business risk. * The organization is dependant on a main competitive advantage, the retail of coffee. This could make them slow to diversify into other sectors should the need arise. Opportunities * Starbucks are very good at taking advantage of opportunities. * In 2004 the company created a CD-burning service in their Santa Monica (California USA) cafe with Hewlett Packard, where customers create their own music CD. * New products and services that can be retailed in their cafes, such as Fair Trade products. * The company has the opportunity to expand its global operations. New markets for coffee such as India and the Pacific Rim nations are beginning to emerge. * Co-branding with other manufacturers of food and drink, and brand franchising to manufacturers of other goods and services both have potential. Threats * Who knows if the market for coffee will grow and stay in favor with customers, or whether another type of beverage or leisure activity will replace coffee in the future? * Starbucks are exposed to rises in the cost of coffee and dairy products. * Since its conception in Pine Place Park, Seattle in 1971, Starbucks success has lead to the market entry of many competitors and copy cat brands that pose potential threats. Starbucks mission statement is Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. Understanding TOWS Matrix Why use the tool? TOWS Analysis is an effective way of combining a) internal strengths with external opportunities and threats, and b) internal weaknesses with external opportunities and threats to develop a strategy. How to use tool: To carry out a TOWS Analysis, consider the following combinations: Strengths/Opportunities: Consider all strengths one by one listed in the SWOT Analysis with each opportunity to determine how each internal strength can help you capitalize on each external opportunity. Strength/Threats: Consider all strengths one by one listed in the SWOT Analysis with each threat to determine how each internal strength can help you avoid every external threat. Weaknesses/Opportunities: Consider all weaknesses one by one listed in the SWOT Analysis with each opportunity to determine how each internal weakness can be eliminated by using each external opportunity. Weaknesses/Threats: Consider all weaknesses one by one listed in the SWOT Analysis with each threat to determine both can be avoided. Case Study- Application of the TOWS Matrix to Volkswagen Volkswagen (VW) was chosen because it demonstrates how a successful company experienced great difficulties in the early 1970s, but then developed a strategy that resulted in an excellent market position in the late 1970s. The TOWS Matrix shown in Figure 1 will focus on the crucial period from late 1973 to early 1975. The external threats and opportunities pertain mostly to the situation VW faced in the United States, but a similar situation prevailed in Europe at that time. Weaknesses and Threats (WT) A company with great weaknesses often has to resort to a survival strategy. VW could have seriously considered the option of a joint operation with Chrysler or American Motors. Another alternative would have been to withdraw from the American market altogether. Although in difficulties VW did not have to resort to a survival strategy because the company still had much strength. Consequently, a more appropriate strategy was to attempt to overcome the weaknesses and develop them into strengths. In other words, the direction was toward the strength-opportunity position (SO) in the matrix shown as Figure 1. Specifically, the strategy was to reduce the competitive threat by developing a more flexible new product line that would accommodate the needs and desires of the car-buying public. Weaknesses and Opportunities (WO) The growing affluence of customers has resulted in trading up to more luxurious cars. Yet, VW had essentially followed a one-model policy which presented a problem when the design of the Beetle became obsolete A new model line had to be introduced to reach a wider spectrum of buyers. In order to minimize the additional costs of a multi product line, the building block principle was employed in the design of the new cars. This allowed using the same parts for different models that ranged from the relatively low-priced Rabbit to the higher priced Audi line. Another weakness at VW was the rising costs in Germany. For example, in 1973 wages and salaries rose 19 per cent over the previous year. Similarly, increased fuel costs made the shipping of cars to the United States more costly. This situation favored setting up an assembly plant in the United States. However, this also created some problems for VW because it had no experience in dealing with American organized labor. To overcome this weakness, VWs tactic was to recruit managers from Detroit who were capable of establishing good union relations. Strengths and Threats (ST) One of the greatest threats to VW was the continuing appreciation of the Deutsche Mark against the dollar. For example, from October 1972 to November 1973 the mark appreciated 35 percent. This meant higher prices for the buyer. The result, of course, was a less competitive posture. Japanese and American automakers obtained an increasingly larger share of the small-car market. To reduce the threats of competition and the effects of the unfavorable exchange rate, VW was forced to build an assembly plant in the United States. Another strategy for meeting competitive pressures was to build on VWs strengths by developing a car based on advanced-design technology. The result of this effort was the Rabbit, a model with features later adopted by many other car manufacturers. The oil crisis in 1973-1974 not only caused a fuel shortage, but also price rises, a trend that has continued. To meet this threat, VW used its technological capabilities not only to improve its engines (through the use of fuel injection, for examples), but also to develop the very fuel-efficient Diesel engine. This tactic, which was congruent with its general strategy, helped improve the firm’s market position. Strengths and Opportunities (SO) In general, successful firms build on their strengths to take advantage of opportunities. VW is no exception. Throughout this discussion VWs strengths in research, development, engineering, and its experience m production technology became evident. These strengths, under the leadership of Rudolf Leiding, enabled the company to develop a product line that met market demands for an economical car (the Rabbit, successor to the Beetle), as well as the tastes for more luxurious cars with many available options (Scirocco and the Audi line). Eventually the same companys strengths enabled VW to plan and build the assembly facility in New Stanton, Pennsylvania. Thus, YW could benefit from substantial concessions granted by the state government to attract VW which, in turn, provided many employment opportunities. In another tactical move, VW manufactured and sold small engines to Chrysler and American Motors. These companies urgently needed small engines for installation in their own cars and revenues from these sales improved the financial position of VW.

Effect of the Financial Crash on Islamic Banks in the UK

Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud Effect of the Financial Crash on Islamic Banks in the UK Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud