My Goal in Life Essay Example for Free

My Goal in Life EssayAt the mount up of 8 we change our minds about what we indispensableness to do when we grow up about every week. At the 18 and a few months away from graduating few of us still dont know what we want to do or where we want to go in life. Excluding all of those soon to be last school graduates, I already know what I want to do after high and know where I want to go. Since the age of 10, Ive perpetually dreamt of being a police officer. I cant see myself doing anything other than patrolling the streets and keeping people safe.After graduating high school, Im going to go to college for at to the lowest degree four years. When my four years is done and after I turn twenty-one, Im going to join the police academy. Im going to work rough and do whatever it takes to get in and pass all my tests. My goal is to be the best police office on the force. When the time comes after a couple years of patrolling, I would love to work my way up to be a special agent or maybe even be a member of the SWAT team. I know a lot of people may doubt me and a lot of people may say, A little girl like you cant do a job like that. but I will prove them wrong. I want to be able to say I did it instead of I tried, Failing is not an option, the key is to never give up and push yourself as cold as you can go.

Parks and recreation Essay Example for Free

Parks and recreation EssayChicago is a major medical and dental center supported by high-class hospitals and research service offering to its dwellers. Chicago offers life science and biotech entrepreneurs with a balance of capital, community. The local companies are experienced vanguarding the diagnostics, therapeutics, medical equipment, food and environmental biotechnologies, and research and development link activities (World business Chicago, 2005). Transportation Chicagos boasts a major inland port and the railroad hub of the US, while the OHare International Airport is the worlds busiest airports. The urban center has 1,084,127 number of passenger cars and 55,585 trucks (B plates) and 17,807 Trucks (RV) and Busses with total CTA passenger figure of 450,530,411 as per 2000. There are 3 airports, which handled 1,663,784 metric tons of cargo in 2000. The detail is shown in the table 1. 4 (Chicago Public Library, 2005). Lagos is machine-accessible by rail and road to all t he major cities of Nigeria, while the city main Airport is Murtala Muhammad International Airport situated in city center. Ferries and highways unionise the transportation link for the city, but transport links within Lagos are crowded due to chaotic and unplanned geography of the city.Its volatile population, broken roadstead and reckless drivers, worsens the situation (Simmie, 2001) Table 1. 4 Chicago has total 791 parks, which includes baseball, basketball, bathing beaches, field houses, playgrounds, football, golf courses, driving ranges and gymnasiums with total area of 7,337 acres. There are in addition 5,327 harbor facilities and swimming pools, and zoos. (Chicago Public Library, 2005) In Lagos near the lagoon, Ebute Metta, multitude of wooden homes and shops are built over the frail silt which offer cheap financial backing and food. The people sit in the middle and enjoy meals in the middle of stink, naked kids and beggars.The shops are made by these people to have a li ving, as government doesnt seem to bother rough their miseries. A council of elders resolves the issues inside the slums as government has little concern for these poor people (Smith, 2000). Water, sewerage and sanitation system The Chicago city has elaborate and well-developed water and sewerage, sanitation and recycling system. The city daily water pumpage is 969,225,00 gallons, while the water tunnels and lake covers an area of 63 miles. The city residential waste was about 1. 1 million ton as per 2000, while the total amount of recycling reached about 296,425 tons.The total length of sewers is about 4300 miles with 148000 main holes. Lagos is built on poorly drained marshlands. The city suffers flooding not only in the rainy season, but sewage blockage floods the city slums regularly. Just like other third world cities, Lagos is riddled with garbage and waste disposal littered everywhere. The explosive population has led the boom in construction industry, but without any plann ing as a result the building constructed with cheap material collapse giving hold water to series of accidents frequently. The city is infamous for its traffic jams, as some times a 10 km distance can take up to three hours.Lagos has the reputation of the almost dangerous city in the Africa. As the few bridge connects 3,500 square km of islands, swamp and the mainland, the highways run through mountains of garbage and wastelands with dirt and dust in the air passing through its 200 slums eternally drenched in sewage, garbage and industrial waste (Hall, 2001). The city haphazard planning has given rise to chaotic development, causing shortage of houses, roads, power, water and constant traffic jams. About 90 percent of the Nigerian people have access to electricity with Lagos consume 45 percent of the energy (Octchet, 2005).

White Privilege - White people Essay Example for Free

uncontaminating Privilege White mass EssayA variety of factors within our society prevent fit opportunity. We still live in a racialized society where the color of our p be often determines how we are treated. Many face cloth pack do not recognize, or want to recognize that race still significantly impacts lives. Many dust coat mickle are taught growing up not to think as racial universes, and this lightthorn contrisolelye to many a(prenominal) denying the immunitys that go along with being duster. Historically, the goal for equality and opportunity for everyone has not always existed and this has caused a heavy influence on society to side veritable day. My research focuses on and investigates knowledge and perception on the importance of race, and how denial affects us all. White privilege is a social relation that benefits blank persons over non- fresh persons. A said advantage enjoyed by persons of a socially privileged class based on the color of their sk in. A racial category, which involves atomic number 63an-Americans and the occult norm (IAW. 350) against other racial categories. Its important to understand washcloth privilege and how it affects society.A lack of understanding and recognition of unearned privilege may lead us to lack a desire to create a diverse atmosphere, and ways we can be more aware. White privilege may affect how we interact with each other and how those who do not share such advantages are affected. Some question, if pureness privilege still exists, and if its that liberal of a deal. And, if so, how can we work on reducing these effects? The idea of white privilege is said to divide whites and vitriolics into their own economic categories.While white people are given opportunities and benefits, dark colored skin people may be at a disadvantage to these opportunities and benefits. Many analysis of white privilege interpret whiteness as an intangible economic good ( Black Reconstruction in America W. E. B. Du Bois. ). White privilege is the original piddle of racial discrimination that has existed throughout much of American history. Race has been used to define cultural categories of white and non-white human beings. Whites were delineate as being the superior species and blacks were considered low-level and incapable of advancing themselves.The history of this way of thinking and racism go back hundreds of years and is the foundation of white privilege. Institutions gave preferential treatment to people whose ancestors came from Europe compared to people whose ancestors came from Asia and Africa. The white class was granted political and economic rights that people of color were denied. These past laws and the idea of race is what accept directly contri onlyed to our social inequalities, but do social inequalities currently exist? Many people today lead contest that white privilege does in fact still exist. near often, the person contesting is a white person being accused o f enjoying social privilege simply because they are white. White privilege is a term that universally describes and views all white people as being granted with these advantages, but the majority of white people have to work hard to get to the perspective they desire. These positions arent reserved based on the color of our skin. We arent born with the right for a free ride, and we earn our way up just as any other person has to. This seems to be accurate and may give a quality argument to white privilege.Although, for white people born with great resources it may be hard to see, and may not regain privileged or more powerful than others. Growing up palmy and privileged may just be a way of life that we take for granted, unconsciously knowing we do. Many people are unaware of their preferences for lighter skin (The long Problem of racism Skin tone, Status and Inequality. 238). Those who do enjoy these white privileges, its just normal. However white privilege does vary dependi ng on many factors. This may include sex, age, socioeconomic status and others.White skin may in fact be the favored group in our society. Statistics have shown white men and women hold more power positions than black men and women. We may be unaware that being white matters, but we still participate, intentionally or not. In her testify Seeing and Making Culture, Hooks, describes what it is like growing up poor. She says, Many middle class black folks have no currency because they regularly distribute their earnings among a larger kinship group where folks are poor and destitute (IAW. 433). As I read this essay I noticed the terms black and white were used many times to describe a person.Also, it was as if she was implying most black people are poor and white people portray an economic class privilege image. She does acknowledge white poor people, but seems to focus on being black and poor. She explains what college was like as a young black miss, and says, Students in the dormi tory were quick to take over that anything missing had been taken by the black and Filipina women who worked there (IAW. 433). The essays use up is the way we see and judge poor people, but it makes an attempt to acknowledge disadvantaged poor black people as well. This is an example of the way valet de chambre group other humans, stereotyping by race.As a white person we may feel being viewed as white and privileged people will automatically think we are spoiled jerks. The creation of our system in which race codes superiority over others has been bestowed upon us. Even though its confusing its purposeful American history. We must remind ourselves this system is not based on each individual white persons intentions to continue claiming that white privilege is right ours. Regardless of our personal intent the effects are the same. Our society, throughout history, sees white as normal and all other races as different from normal.Today, white peoples privileges may be something we cannot not get. For example, if I buy a box of band aids that say flesh color, I know it means the color of my white skin. White people have been educated to understand our culture and our race as being the social norm. Social norm is defined as beliefs within a society of appropriate behavioral expectations. An example of behavioral expectations of our white society is a young white boy training a book as the social norm, but a young black boy reading a book is acting white. The white boy seemingly normal but the black boy performing a white persons behavior.Comedian Chris Rock often talks of white privilege, and uses the air in his stand-up routines almost always. At one point he says to an audience of many white people, None of ya would change places with me And Im abstruse Thats how good it is to be white Its not like slavery ended and then everything has been amazing (Chris Rock. About America). Even in an audience about life as a comedian he says, Black people have first- hand knowledge on racism (Chris Rock. Hilarious Interview). Racism is so deeply rooted in our society. Is it even possible for people of any skin color to just look at people as humans?It is assumed, no matter our skin color, we gravitate to people who look like ourselves. This includes personality, religion, morals as well as features. We are naturally attracted and comfortable with people who resemble ourselves. This seems like a normal behavior. It doesnt necessarily mean we dislike other races. Regardless of skin color, people who are white/black/brown, all discriminate against other races and cultures. Most all humans are guilty of making judgments against another before knowing or nurture anything about the person. This applies to people of all groups and of any color for many different reasons.It is an unconscious act, and a part of our human nature. White privilege is an unwilling and non-owned racism that has been ingrained into our mindset throughout history. Racism come s from both sides. commonwealth of all colors are continuing these behaviors and racism continues to be a modern day battle. Racism is affecting us all. If white privilege is inequality among races it is creating dysfunctional relationships between races. Many black people feel white people have an obligated duty to clean up the racist messes they have created throughout history.People with dark skin have negative feelings toward people with light skin for slavery and civil rights. How is this fair? Most people dislike racism, and this includes white people. Our society has created a practice of stereotyping into categories by skin color. Many white people feel targeted for their white privilege. Are we in denial white privilege still exists, or is it a misunderstanding? It has been said an advantage of white privilege is white people having more wealth that is being passed from generation to generation. We benefit from this financial assistance giving white people a better beginn ing point in life.Although, in my experience, my family and ancestors have worked hard for their money and some of my family living in poverty. I have not benefited from any wealth being passed down to me. Throughout history white people have worked hard and in return they claim the land and wealth. Is white privilege today being confused for cultural differences, or are we taught not to recognize it? Many white Americans have lived under the assumption that if they worked hard, they would be rewarded. Now more white Americans are sharing unemployment lines with those people black and brown (Tim Wise.White Like Me. ). People of color say they worry about being discriminated against for the color of their skin. They feel disadvantaged when seeking housing, employment or simply shopping in stores. They feel they have worked just as hard as white people, but they still dont make it to their level of success. Also saying having light skin is one less worry white people have, and People who are poor and white, still have the benefit of looking white and the advantages that come along with having white skin. White people have even claimed the indistinguishability of who we are as Americans.It seems history continues to echo, making white the default race in America. There are Asian Americans, African Americans, Mexican Americans and Americans, and we automatically assume American is a Caucasian person, without adding something extra to the name. It seems white dominates the American population. A white American is considered to be the model race. It has been consistent that white is the national identity. White people are the majority in most regions. We have stayed confined in a world that doesnt challenge this distribution of power and this allows proceed inequality and injustice in the United States.Shouldnt we understand theres only one race, the human race? As humans we are different. We have different hair color, eye color, personality and skin color. The ac cident of where one is born is just that, an accident (IAW. 669). Is the idea of different races ignorant thinking, I mean we can all reproduce with one another My first day of high drill I was surprised when I stepped out of my flummoxs car and looked round to see the majority of students were black or brown. I have to admit I was a bit intimidated. I was worried I may not fit in. This high school was very multicultural.Still today, when I tell people where I went to high school they may make a racist joke, or say, oh the gangster school. I get irritated, because its a typical stereotype. My experience was ok. I had friends with brown, black and white skin. We all came from different backgrounds, but we were all very close friends, and most of us are still today. Some of my dark skinned friends would joke around and call me white devil or white girl. It was ok and considered normal for the dark skinned kids to make jokes about the white kids, but NOT ok for the white kids to ma ke jokes about brown/black kids.Although, we made friendships work, the white kids never completely fit in to the cliques. We were the white boy or girl of the group. Back when television was dominant, young whites could consume black style and expressive culture (IAW. 514). This describes almost every white boy or girl, and my high school experience. And now today, the racial perceptions and biases we develop in our off-line lives, they conclude, likely creep into our online lives (IAW. 515). So, just like my real-life high school experience, it has continued into our new age technologically advanced generation, where social media is taking over.Myspace and facebook are the new age cliques. And, as in the real world, is racially divided. It is being said more white people are using facebook and darker skinned people are using myspace. Researchers began to ponder how social inequalities impact engagement with the internet (IAW. 506). Social media mirrors our social divides in the re al physical world. People migrate towards others who share the same values and beliefs, and who they are most comfortable interacting with. Social inequalities still matter in the physical world. And as we are learning they also matter in the virtual world (IAW. 507).

The Common Causes Of Business Failure Business Essay

The Common Causes Of Business Failure Business Essay wishing of intentness Experience and Knowledge, Insufficient Start-up Money, Failure to Understand Market and Customers, Poor Employee Management Skills, Wrong Location, Improper Pricing of Product or Service, Failure to Understand and reply to Competition, Incorrect Cash-Flow Estimates (Poor Budgeting), Insufficient duration Devoted to Business, Mis guidance of Assets,(Cash ,Inventory, Receivables, Fixed Assets)Prepargon Sales levyation Make Quarterly Payments, Estimate Income Tax, Make Payments, Analyze equivocal Accounts Receivables, Review Detailed Inventory Schedule, Analyze Prepaid Expenses, Review Schedule of Property and Equipment, Review Accounts Payable/Accrued Expenses, Review Schedule of Insurance Policies. harmonize to PL, analyze Inventory Write-downs, Analyze some other Assets and Other Liabilities, Analyze Current/Long-Term Debt, Prepare IRS Forms W-2 (employee) and Forms 1099 (consultant), Close Financial Books for the Year, Draft Financial Reports (if needed), Draft Tax ReturnsIf they deliver no ideas of these items there was maximum chance of strain ill and need to minimize the agate line and go ahead to victory.Fredland and Morris (1976) says when a owner strike a headache he/she/ telephoner accept the three kinds of risk. which resolve the success to the crease. firstly. risk related with the economy in which product line is located. it referred to economy found risk. Secondly, risk related with the industry in which that bloodline is operating. It referred to industry based. Thirdly, risk related with the business itself which is unique. I t refereed to starchy based risk.According to (Dun and Bardstreet 1997), utter that most of the business are loser because they bear non survey approximately their business and their employees. Only 20 employees make believe 37% chance to surveying four categorys. 9% chance of surveying 10 years and these failed business 10%of them closed involuntarily due to bankruptcy and 90% closed because the business was not successful. Other thing is owner didnt pay how much the employee wants or desired as for their effort.In US over 43000 business failed on 1997 thats total liabilities nearly $20 billion.90% business failure in the US are cause by a lack of general business management skills and imagening. According to Dun Bradstreet statistics7, 88.7% of totally business failures are due to management slides. The following list summarize the 12 leading management mistakes that lead to business failures.1) Going into business for the wrong reasons2) Advice from family an friends3) existence in the wrong come forth that the wrong metre4) Entrepreneur gets worn- unwrap and/or underestimated the time requirements5) Family pressure on time and money commitments6) Pride7) drop of market awareness8) The entrepreneur falls in love with the product/business9) Lack of financial responsibility and awareness10) Lack of a fire up charge11) Too much money12) Optimistic/Realistic/PessimisticIt should be unders besidesd that no magic solutions forget guarantee a business success. However, the following items should assist in the improvement of chances for success.1) Development of a business plan2) Obtaining accurate financial information about the business in a timely manner3) Profile of fool4) Profile of competition5) Go into business for the right reasons6) Dont borrow family money and dont ask the family for advice7) Network with other business owners in similar industries8) Dont forget, someone will always have a lower price than you9) Realize that consumer tastes and preference change10) Become better communicate of the preferences that are available1.2.2 some causes of business failure in the market1. Lack of clear links mingled with the objectives and the organisations key strategicalal priorities, including agreed measures of success.2. Lack of clear senior management and other l evel.3. Lack of heartive engagement with stakeholders.4. Lack of skills and established approach to project management and risk management.5. Too piddling attention to breaking development and implementation into manageable steps.6. Evaluation of proposals driven by initial price rather than long- enclosure value for money (especially securing speech of business benefits).7. Lack of understanding and contact with the supply industry at senior levels in the organisation.8. Lack of effective arranging team integration between clients, the supplier team and the supply chain.1.2.3 Small Business Success storyOne of the success busine.ss story of Oscar Neal Asbury who is the founder and president of Greenfield World Trade. He convoluted in exporting of high quality US product since 1979.he gives the service for the food and equipment over 130 countries to both retail and commercial market.Now a days Asbury is the US economy stragglers he expanding his products. He is a success busine ss man at getting loan during the national credit just nowterfly and witness to the financial strength of his company as well as the strategic importance of being an exporter to over 130 countries. He won the reputable award 2008 small business week National Exporter Year award and E-Star Export and the Export Achievement award from the US Department of commerce.In 1981 he went to Asia for re stand fored several US manufactures throughout the region and In 1987 he found Asbury worldwide which became the largest American Export management company in its atom with 12 distri notwithstandingion facilities around the world. He starts FAB Asia, Inc. In the Philippines which was the exclusive Asian fabricators of commercial kitchens for McDonalds as well as other well cognise American restaurants and chains. In 1999 Mr. Asbury established his current company, Greenfield World trade ,.Inc. He published over 50articals on global trade issues, a column for to The power point News and In ternational Trade Blog for asburysworld.com .Mr. Asbury is similarly an advocate, leader in this field and also the US secretary of commerce, he serves as the chairman of the southeastern Florida district Export Council and is a founding faculty member of Export University. He is also the member of the international policy committee at the US chamber of commerce in Washington DC.This is the successful business story of Asbury in the small business governance who gives his effort for the organization. At that time he used various types of ideas and business strategy with their business competitors.when the business start it need to faced many kinds of internal and external problems. For the success business organization reduce or solving problem which effect the organization . The modern business is very complex. Due to scientific and technological development, changes are taking place very fast in every business field. Following are the basic personal skills or qualities which a good man of affairs must be possessed of1. Ability to Plan A businessman, if he wants to shine in business, must have the ability to plan and organize it.2. Activator He had to activate his workers. If he activates his workers past this is good for business.3. Bold or Courage Courage is a great asset of a businessman. A good businessman should be a gamy and bold person. May be his some angry ends gave him loss in future, so he has to be courageous and be bold.4. Cooperation A good businessman should have to cooperate with his workers. With the help of cooperation with his workers he can run his business well.5. Courtesy Courtesy is to business what oil is to machinery. It costs nothing but wins a reputation. So businessman has to win the heart of everyone with his polite manners.6. Decision Making A good businessman should be a good and quick decision plantr. Quick decision of a businessman is an important asset of businessman. And businessman has to know that his quick decisio n will give him benefit or not.7. determine A good businessman should have to care about the take of the business. If he doesnt care about the discipline then nobody (who concern to his business) obeys the discipline and business cant go well.8. Evaluator A businessman has to check himself that how he is working. This thing can make the business good in progress.9. prevision A good businessman must have the quality of foresight. He must keep in touch with the business world. He should move about and see what is going on for he has to estimate new wants and new inventions for creating fresh demands.10. Honesty A businessman should be honest in traffic with others. Honesty of a businessman helps him in his business.11. Hardworking A businessman must be hard working. Without have working no business can be successful. If the owner is not hard working then other workers of the business cant be hardworking.12. Initiation The business world is moving at a very fast speed. A businessma n should have the ability to take initiative by producing new things and new methods of marketing the products and services.13. Knowledge A good businessman should have intimacy of his business. It should be supplemented by the knowledge of trade, finance, marketing, income tax, etc.14. Leadership Leaders are not made, they are born but the businessman has to get some qualities of a leader. With the help of leadership a businessman can control his business and workers.15. Negotiator If a businessman is a good negotiator, then he can run his business well, because without good communication he cant impress his consumer.16. Personality A businessman should have a graceful personality because it can impress his customers. If his personality is not good or not graceful then his business cant go well.1.3 Significance of studyWhy is the business planning is important and why it will be done in concert with a strategy? What benefits will occur by this study?For the success of any organiz ation, planning should be the most important to achieve the goal. Without the planning organization never achieve the target of goal and objectives of organization by view of macro perspective business is done in a global market. Because of the growing new technology and the Internet. Time and distance continue to become less and less relevant. In a view of micro, the level of any individual company or organization strategic planning provides a company purpose and direction.It is importance to owners of organization and high level managers who make plans and policies to achieving goals. The main benefit of this planning is make no mistake in business running when the planning is making 1st find out the weakness of organization and try to removed this weakness which get the success and the goal of organization.1.4 Research Questions and/or Hypotheses and/or Null HypothesesThe objectives of any good business search should be how to better promote the business in an economically sound manner and to increase the businesses net profit, exposure, and ensure its continuity.Another characteristic of good business explore is judging local problems of the environs in which makeup is going to operate. If the business is manufacturing a particularized product, look at the market size and options on how to produce the product. characteristic of good business research objectives is tractableness .To identify about the policies and strategy of other competitors of the market. what they are doing?1.5 Analytical ProcedureAnalytical procedure helps to find out the target objectives. It refers to the procedure of apply the uninflected statistical tools and entropy. There are not any specific tools that can be used to find out the desired outcome. For the study it will be used the SWOT synopsis System has been used. A brief description of the SWOT1.5.1 Internal analysis of the organizationThe SWOT analyse is made by observing and describing ( it is a soft analyse ) the characteristics of our business and of the market where it is found. The SWOT analysis allows to detect the strength of our company and the threats of the environment.S -Strength describes the resources and the skills that our company has acquired. What is the difference from the company? What can we improve ?W -Weakness describes the factors in which we have unfavourable position with regard to the competence. In order to make the internal analysis.In order to make the internal analysis , has to be considered the analysis of resources, of activities and risks. outdoor(a) analysis of the organizationO -Opportunities they describe the possible markets, business niches that can be seen by everyone, but if they are not recognized on time that would mean the loss of the competitive emolument.T -Threats The describe the factors that cab put in danger the excerption of the organization , if they are recognised on time they can dodge or they can become opportunities.In order to make the internal analysis we have to take into account the analysis of the environment, of the interested groups, the legislation, and the demographic and political aspects.Once we have described the threats, the opportunities, the strengths and the weakness of the company, we can construct the SWOT matrix. hyaloplasm let us visualise and summarised the present situation of the company.Chapter-2LITERATURE REVIEW2.1 INTRODUCTIONThe main objectives of this chapter is to review the previous and existing literature which is close to the research topic and objectives. In this chapter we get the clear vision about the business organization and the short description about the strategies planning ,policies, knowledge management, business environment, causes , movement and the symptoms of the business failure and how to alignment . The research will be predictably analysis under incompatible views which relevant different methods of business portent. This study business failure helps to sust ain long term run in market, save form competitors and how to manage the internal and external environmental problems of business organization for the success of business organization.2.2 Overview of business organizationAccording to recent statistics from the UKsMinistry of Justice, almost 12,000 companies filed for insolvency in 2007 in England and Wales.This number is forecast to increase significantly (to around 13,500 companies) in 2008 (Financial Times, 2 January 2008) as the financial crisis hits businesses in the wider economy. Smaller companies are managely to suffer most because of a slowing economy and the increasing costs of borrowing in a deteriorating business environment.Business organization refers to that economic activity which is need on regular basis to earning profit motive through the production and sale of goods and service. In other word business means to remain busy in any activity like buying and selling production or dispersal goods or service.Shrestha k.N.( 2010 pp.4-5) says that business organization which are formed for earning profit. they are mainly concerned with producing goods and service of value to the society .companies ,partnership, sole trading and joint declination are organised along this lines with a profit motive to survive against competition , future expansion and development.Taylor , F.W. (1856-19150 ) says a business organization usually in the manufacturing field, which provides students with education and training to degree standard.(David A.staat business management.1991,1999,2004 Routledge is an imprint of the Taylor and Francis group.)Much of todays economic and business thinking is based on the ideas of the scientific movements towards the end of the nineteenth coke one of the main underlying assumptions was that the economy and the business environment form a closed system in a state of dynamic equilibrium. By Beinhocker, (1997) . Ans gains (1993) states the model of environmental turbulence which sho ws the extreme reason of discontinuous unpredictably changing environment. The main objective of purposed organizations lack of complete information or different organization interpret the same information in different way? And business is the lifeblood of capitalist society. At once time or another we have all consider going into business. Everyday millions of people in the US buy goods from business one pay tax. Which invest on another business. The tax generated by these business help support a government infrastructure that is unrivalled in the modern world by Bevans(1961)2.3 Business dodgingMc. kiernan (1997) identify four strands to strategy theory and the knowledge based approach to strategy is sometimes subsumed into core competence or resource based strategy. We believed, however that knowledge -based strategy has its own distinctive characteristic at the same time as providing a fundamental underpinning for all the other theories of strategic Management . strategic learn ing is concerned with the process by which leaders, managers and organization learn about themselves. Their business and environment. Strategic learning is vital to development of the strategic knowledge upon which best performance is based by Nokaka(1991)and other germs Chandler (1962) state that the strategy is determination of the basic long term and objectives of an enterprise and the adoption of course of action and all the allocation of resources necessary for carrying out of these goal .Porter (1996) state that positioning-once the heart of strategy is rejected as too static for todays dynamic market and changing technological.2.3.1 Strategy FormationAccording to Teeca. et al (1995) says that the fundamental questions in the field of strategic management is how firm achieve and sustain competitive advantage. By the development a dynamic capabilities approach, the four questions helps define the field of strategic management its boundaries as they exist today, it concerns an d how it can makes contribution to the praxis of management the questions areHow the firm make out?Why are firms different?What is the function of or value added by the headquarters unit in a multi -business firm?What determines the success or failure of the firm in international or national competition?2.3.2 Business EnvironmentThe business firm is a micro-economic- unit which firm operates. Bye environment the reference is the set of external factor on forces which operation of the business firm. The business firm individually doesnt have much influence on the environment.Types of business EnvironmentEconomic Environmental businessNon Economic Environmental businessEconomic Environmental businessEconomic Environmental business activities involve innovation of inputs into outputs , supply of these market place and exchange of the products with the buyer for money, Business organization objet dart performing these economic activities are constrained by the availability of resou rce ,land ,labour, capital raw materials and finance. Which related internal factors of business environment by Pailwar (2010) and another author states about non economical environmental business or External Environment. Reddy (2004) states that the environment is so complex and dynamic that it is difficult to describe and analysis because it is the external factor which automatically effect to the organization from outside the business organization such asPolitical environmentSocial environmentDemographic environmentTechnological environmentNatural environment andHistorical environment make-up Changing organizational characteristicOrganization success when they operate in states of stability and harmony to adopt intentionally to the environment. Lowendahl (2005) concludes the the increasing complexity is transforming the field of strategic management form a search for general solution to an understanding and acceptance that different solution can working equally well. In behave modern situation the nation of garnd (formal) theory model or frame work that applies to all organizations in a population collapses, as the characteristics of the organization by definition will be local, unique and temporary.2.4 Knowledge managementThis is the idea for how knowledge is manage like including knowledge management strategy and implementation by the definition of Webester (1992) Relationship management and marketing reflect these changing in management and strategy. These definitions embrace a verity of partners, not just customer and the term relationship can mean a variety of things depending on how it applied. It can be taken to mean only type of cooperation, form a create by mental act supply relationship to strategies evidence. And another author Donaldson (1998)said the managing various relationship types may place emphasis on managerial style and associated organizational culture. And organization using implementation methods in dealing with one supplier might find it a challenge to change to relationship approach. identifying customer needs and requirementsanticipating future trends and observe environmental forces satisfying customers existing and future requirements through managing the product or service packing, optimising value for money pricing and maximizing availability and delivery while promoting and selling benefits in the most effective way.profit, ensuring that the company will be able to provide this process in the future.2.4.1 Causes, Process and RemediesThe failure process of the firm can be compared with the evolution of a disease in a human beings. In the same way failure itself is comparable to death. The causes of failure are often associated with management adequacy. These causes lead to occurrence of symptoms which are observable from the deterioration of financial ration.From the statement given by Luoma and Laitinen (1991) we can infer that a) failure is not a sudden even, it takes some time (evolution of the di sease) for a company to become bankruptcy b) financial ratios are only symptoms of failure and c) failure process is triggered off by something causes.Unfortunately , very few authors Altman(1971) Vernimmen(1978) Dambolena and Knoury (1980) Koenig (1985) or Markidakis (1991) are in reality interested in bankruptcy. Even if the list of causes may be different across studies, we can distinguish two main causes of failure. Endogenous and exogenous factors. The main causes within organization is managerial incompetence this is the case in France and Belgium but also in US where 90% of bankruptcy can be impute to this factor Dambolena and Khoury (1980) add that bad management appears through lack of responsibilities to change in technology. Insufficient consideration for cost factor poor knowledge of financial matters.What exogenous factors concern, Altman (1971) mentions that the change in the nations failure rate is negatively associated with the change in overall economic activities Guilhot (2000) mention that there is a systematic correlation between failure and economic crises stock market performance, and supply condition. Thats why author Altman (1971) include in their macroeconomic factor. The influence of macroeconomic factor on bankruptcy seems particularly important. The numbers of bankruptcy in 2000is decreasing in Belgium to the relatively good and stable economic situation. But Vernimmen (1997) state again that the failure of one firms customer was the main causes of firms bankruptcy in France. This statement introduced bankruptcy prediction is very important topic because failure of a particular company could have unfortunate impact on ither entities.2.4.2 The symptoms of FailureWe already point out that the most of the authors rely on symptoms of the diseased in order to predict failure or bankruptcy. These symptoms can be qualitative or quantitative.(financial ratios) variables. Altman (1968) states that the excluding applications on too typical sector like banking or insurance. Where more and more ratios were used. Its strictly impossible to give here all ratios.We noticed that the most frequently used financial ratios are CA/CL, WC/TA, EBIT/TA and NI/TA. It was necessary to included non-financial and more qualitative information in the model Altman and Loris (1976) and Vernimmen (1978) Dimitras et. Al (1995) Greco et al. (1998) really including as qualitative information bankruptcy predication model. In this section they analysis as qualitative information managers works experiences. Firms market niche-position special competitive advantage of firm or market flexibility. Cormier et al.(1994) include other qualitative indicators like investment in a new sector, change in the depreciation method or change in ownership.Few authors Abdel-Khalik and El-Sheshi (1980) used trend data in the form of the average change over several years in different ratio. It seems that trends variable have a greater ability to draw out informat ion from balance sheet data and more able to famine creating accounting.Mader (1975) Mensah (1984) Khalos(1985) or Taffer(1985) proved the contrary. The size of the firm seems also have an impact on the financial disease of the firm of the firm. Bryant (1971) and Laitinen (1992) or Jo and Han (1997) shows the incorporate the size represented, like total assets , sales and the numbers of employees.2.5 Strategic AlignmentHR and Business leader must think of strategy and its role in the border HR. Programmes and practice in a holistic way answering these questions as they determine the policies and practice that will be their basis of their business culture.What do we do?How should we do it?What all skills do we need to be successful?What skills do we need survive for future?It means the link between all of the activities that are conduct as part of human resources management and the human resources policy. This links explain the direct application of every single human resource polic y, practice and political program support the business.Brocke and Rosemann (2010) conclude that the business process management requires an alignment with the organizational strategy. Only such tight alignment ensure relevance business process management and a valuable contribution to the corporate long term priorities. Alignment doesnt have to be a unidirectional in the typical superstar that a BPM strategys oriented towards the corporate strategy.Source Handbook on process management by J. Vom Brocke and M. Rosemaan (2010) Delivering Business strategy through process managementIt should be recognized that two phases will naturally build off one another in a never ending cycle from year to year. It formulates enhanced by and planned capabilities from the previous round.CHAPTER 3RESEARCH- METHODOLOGY3.1 IntroductionThis chapter deals with the research design, justification for the selected study unit, nature and source of data, data stashion method, data processing and SWOT anal ysis The word methodology is defined as a system which comprises the principles, practices and procedures which are applied to a specific branch of knowledge. methodology refers to the way in which information is found or the way something is done. Methodology includes the methods, techniques and procedures which are used to collect and analyse information.3.2 Research DesignA research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It is the plan structure and strategy on investigations conceived for obtaining answers to research questions and to control variances. To achieve the objective of this study, descriptive and analytical research designs have been used. To evaluate operating performance and the present condition of market, the SWOT analysis is taken as a secondary data analysis tool for this study.3.3 Source of DataThis study is conducted primarily on the basis of secondary data. The data relating to the theoretical based on the business organizations such as impact of internal and external business environment which effect directly to organization . In this cases, the primary data is not taken for the accuracy of analysis. Because it is not possible and also difficult to collect primary data. supplemental data and information are collected from existing research, journals, news, books and websites.3.4 Appropriate Research MethodFor this subject we can choose any method like the Description, explanation, qualitative and quantitative is the methods to collection and analysis of data.3.4.1 Description Method to describe a behaviour or type of subject not to look for any specific relationships, nor to correlate 2 or more variables. It can acquire a lot of information through description. It can be used as an verificatory test of a theory or model some behaviours/situations cannot be studied any other way to general categories of descriptive designs surveys observational studies.3.4.2 explanatory Method Explanatory research focuses on why questions. For example, it is one thing to describe the crime rate in a country, to examine trends over time or to compare the rates in different countries. It is quite a different thing to develop explanations about why the crime rate is as high as it is, why some types of crime are increasing or why the rate is higher in some countries than in others.3.4.3 qualitative Method The design of qualitative research is probably the most flexible of the various experimental techniques, encompassing a variety of accepted methods and structures. From an individual case study to an extensive survey, this type of study still needs to be carefully constructed and designed, but there is no standardized structure.3.4.4 valued method Quantitative research is all about quantifying the relationships between variables. Variables are the things you measure on your subjects, which can be humans, animals, or cells. Variables can represent subject characteristics (e.g. weight, height, sex), the things are really interested in variables representing the timing of measurements and nature of any treatments subjects receive. To quantify the relationships between these variables, we use values of effect statistics such as the correlation coefficient, the difference between means of something in two groups, or the relative frequency of something in two groups.3.4.5 Types of data collectioni) Primary Data this is the data which is collected by the first research person. In this method the data collect himself using methods such as interviews and questionnaires. The key point here is that the data he/she collect is unique to him and his/her research and, until he/she publish, no one else has access to it. There are many methods of collecting primary data and the main methods include Questionnaires, interviews, focus group interviews, observation, case-studies, diaries ,critic al incidents

Microfinance Institutions in Mediterranean Countries

Microfinance Institutions in Mediterranean CountriesThis paper examines empirically the relation in the midst of disposal mechanisms and the per random variableance of Euro-Mediterranean microfinance institutions (MFIs) in terms of outreach and sustainability. Specifically, we put that surgical procedure-based compensation of managers is not associated with demote slaying of MFIs. The results disclose tradeoffs amid MFIs outreach and sustainability depending on larger tabular arrays size, and on high proportion of unaffiliated directors. Moreover, the study assigns that the to a greater extent women on that point be on a come on the reveal the action, and reveals that external establishment mechanisms help MFIs to achieve better monetary capital punishment. This study excessively allows us to distinguish other factors leading to a better sustainability such as Regulation, the use of individual lending methodology. However, the MFIs quick as NGOs seem to be more than consistent with their social direction than with their financial performance.1. IntroductionMicrofinance is the provision of financial and non financial services to the poor who argon excluded from financial/credit markets because they be considered unbankable. Indeed, microfinance institutions has evolved primarily as a consequence of the efforts individuals and assistance agencies committed to the idea of ensuring that the poor people has access to some form of credit. The majority of MFIs claims having a dual mission of reaching poor borrowers (outreach), and being financially sustainable (sustainability).While the social goals of reaching the poorest and poverty alleviation argon valid, financial sustainability has emerged as one of the core commission and governing body issues. The narrowing resources base for donor funds to support the increasing demand for grants and soft loans implies that MFIs go forth eventually have to support themselves (Ledgerwood, 2000). H owever, their sustainability entrust focus on validation social structures within the industry. Indeed, as M Labie (2000) observes, in the last decade somatic plaque principles have imposed themselves as the basic rules for any well Run Company to follow. The trend has however transcended from traditional business companies but is now office staff of the orbiculateization process often seen as a tool for standardizing the controlling vision for any major organization in the world. The drive towards Governance has been propelled by a chip of factors particularly the collapses of some of the major players in the Industry, the influx of private Equity and fall in donor funding.Governance is about achieving merged goals. The fundamental purpose of MFIs is to contribute to a country development. This involves reaching out to more clients especially the poor (Helms, 2006 Johnson et al., 2006). Not least but now emergence in importance especially among donors is the requirement that MFIs achieve financial sustainability.Microfinance practitioners assert that good governance is the key to a successful MFI (Campion, 1998 Rock, Otero Saltzman, 1998 Labie, 2001 CGAP, 2006 Helms, 2006 UN, 2006). In spite of these observations, only few studies have focuse on governance and the examination of the linkage of sundry(a) governance mechanisms and performance (McGuire, 1999). It seems relevant to examine closely the role of discordant governance mechanisms since MFIs managers control signifi stomacht resources. Except the study of Hartarska (2005), and those of Mersland, Roy and Strm, Reidar ystein (2007), and Cull et al., (2007), no more study attempt to shed light on the link amidst governance and performance especially in the Euro-Mediterranean countries although it is a very ready zone with a microfinance industry quite diverse (NGO, NBFI, Bank) where actors should simultaneously pursue the intimately effective way of realizing their social objective while achieving superior levels of profitability.While exploiting recently conducted survey by the authors in order to study the efficiency of MFIs in Mediterranean countries, the annual financial reports of the microfinance institutions and other relevant development cool from Microfinance Information Exchange (MIX), this paper aim to investigate the link between governance and Euro-Mediterranean MFIs performance in terms of outreach and sustainability since governance guides an institution in fulfilling its corporate mission and protects the institutions assets over time. As Rock, R, Otero, M Saltzman, S (1998) notes it is a key in guiding management in strategic issues and in carrying out the agreed upon strategic plans. The empirical homunculus explores the joint and individual effect of management compensation, jump on diversity, and external governance mechanisms on both MFI sustainability, and the depth and breath of outreach while controlling for individual characteristics a nd, as well as country specific factors. The results show that performance-based compensation does not improve performance. MFIs with larger visiting cards seem to do better. More independent boards atomic number 18 more effective however. gameboard diversity (Higher proportion of women) seems to meliorate outreach. External governance mechanisms especially auditing and regulation improve the financial sustainability.The remainder of this paper is organized as follows. Section 2 deals with the research context. Section 3 briefly reviews the few related studies. Section 4 presents the conceptual framework as well as working conjecture. Section 5 looks at info description and methodology. Section 6 discusses the empirical findings, and Section 7 draws conclusions emanating from the findings.2. Microfinance in MediterraneanExperience throughout the world has proven that microfinance help the poor to subjoin income, built their business, and secure their future by reducing their vulnerability to external shocks. Furthermore, microfinance is often a powerful tool for empowering the poor especially women, to take burster of their economic well-being and those of their families.The Euro-Mediterranean region consists of 21 countries. The microfinance industry in this zone is young with high growth potential. Currently, it is estimated that there are over sixty microfinance institutions (MFIs NGOs), and a potential of numerous other producing credit to poor microentrepreneurs (Ben Soltane, 2008). The majority of these programs are south of the Mediterranean (Egypt, Jordan, Lebanon, Morocco, heaven, Tunisia, and Syria). Programs also exist in Spain, France, Italy, Kosovo, Albania, Bosnia, and Croatia (Figure 1).MoroccoAMSSF, FMBC, KARAMA, AL AMANA, ZAKOURATurkeyMAYABosniaBossel, EKI,MI-Bospo, MIKRA, Women For WomenPalestineFATEN, UNRWAItalyFRD, 10 TalentiFond S.M.SoccorsoFond S.G.MoscatiTunisiaENDA, BTSSpainCODESPA, WWB SpainEgyptESED, Lead launchation, DBACD , Al TadamunFranceCSDLAlbaniaPSHM, USCACroatiaDEMOSLebanonAl Majmoua, Ameen, CHF-AMJordanMFW, AMC, JMCC,DEFKosovoP4, Meshtekna,Grameen TrustFigure11 MFIs delivering microcredit in the Mediterranean.Euro-Mediterranean MFIs aim to provide financial services to low income house defys, even the super poor in a participatory and non-paternalistic development approach to the great interest of the donor community, policy makers, development researcher and practitioners. check to the so-called win-win proposal of marriage MFIs should admit the socials goals, such as poverty alleviation and reaching poor households (outreach) with operational and financial self-sufficiency (sustainability) based on access to international financial markets independently from international development agencies. Therefore, MFIs should simultaneously pursue the most effective way of realizing their social objective while achieving superior levels of profitability.The regions top MFIs are openly committed to best practice microfinance. In terms of depth of outreach, the sector has generally moved towards serving more and more of the poor clients. According to the FEMIP and Sanabel study, the Mediterranean represents a potential market for the microfinance with nearly 40 million customers, whereas currently only 9 million people profit from the financial assistance of the companies operate in this sector. The number of borrowers increased of more than 43 % per annum between 2004 and 2006, against 20% on a worldwide scale, an indication that the sector as a unhurt is reaching more of the marginalized in the society. The regions top MFIs have proven also to have excellent leadership abilities, impressive outreach and growth, as well as a commitment to best practice microfinance. Furthermore, it is estimated that around 85% of the regions active clients are served by sustainable MFIs.3. Literature reviewGovernance in microfinance has been recognized to be an principal(prenominal) issue. However, the biggest problem to microfinance practitioners has been balancing the dual mission of outreach and sustainability. The changing of microfinance environment has shown a move towards sustainability ultimately leading to governance issues as donors funds shrink and equity inflows increase in the microfinance sector. Microfinance institutions have therefore embraced boards and adopted principles of corporate governance to keep in line their survival.Investigating the link between good governance and the performance of MFIs in terms of outreach and sustainability is crucial since governance guides an institution in fulfilling its corporate mission and protects the institution assets over the time. However, there is a express mail academic studies transaction with this subject, partly due to the lack of data.While using three surveys of rated and unrated east European MFIs from three random samples in the period 1998 to 2002, Hartarska (2005), investigates the relation betw een governance mechanisms and financial performance. monetary performance and outreach constitute dependant variable dimensions and governance mechanisms include board characteristics, managerial compensation, and external governance mechanisms such as rating, financial statements audited, and supervision. The author finds that performance-based compensation of managers is not associated with better performing MFIs lower wages suggested for mission-driven organization worsen outreach. She identify also that a more independent board has better ROA, but a board with employee directors gives lower financial performance and lower outreach. Finally, the author folds that external governance mechanism seems to have a limited role in the study region.In a recent study, Mersland, Roy and Strm, Reidar ystein (2007), use a self constructed global data set on MFIs spanning 57 countries collected from third-partly rating agencies. The authors study the effect of board characteristics, ownersh ip type, competition and regulation on the MFIs outreach to poor clients and its financial performance. They found that split roles of chief operating officer Chairman, a pistillate CEO, and competition are important explanation. Moreover, the authors found that larger board size decrease the average loan size, while individual guaranteed loan increase it. Finally, they conclude that there is no difference between nonprofits organizations and shareholder firms in financial performance and outreach.A third study conducted by Cull et al., (2007) looking at MFIs financial performance and outreach as well, with a focus on lending methodology2, controlling for capital and labour cost as well as institutional features. While using data from 124 rated MFIs, the authors found that MFIs that focus on providing loans to individuals perform better in terms of profitability. Yet, the fraction of poor borrowers and female borrowers in the loan portfolio of these MFIs is lower than for MFIs that focus on lending to groups. The study suggests also that individual-based MFIs, especially if they grow larger, focus increasingly on wealthier clients, a phenomenon termed as mission drift. This mission drift does not occur as strongly for the group-based MFIs. However, no governance variables, such as board characteristics or ownership type are taken into consideration.The limited academic investigation into the link between governance mechanisms and performance of MFIs in terms of outreach and sustainability, and the fact that other governance mechanisms such as the proportion of women in the board remain unexplored justify the importance of a similar study in the Euro-Mediterranean zone, characterized by a very active and quite diverse microfinance industry, that complete formers studies.4. Conceptual framework and working hypothesisWhile focusing on the microfinance field, the governance can be defined as the process of guiding an institution to achieve its objectives while p rotecting its assets. It refer to the mechanisms though which donors, equity, investors, and other providers of funds ensure themselves that their funds will be used according to the mean purposes (Hatarska, 2005). The presence of these control mechanisms is crucial either to align the interests of managers and providers of funds since they may have diverting preferences and objectives, or to monitor the performance of managers to envision that they use their delegated power to generate the highest possible returns for the providers of funds. This notion comes from the chest perspective. It found its origins in the work of M. C. Jensen and W. H. Meckling, 1976 who assimilate the firm to a node of contracts. The explanatory model of the structures of financing and shareholding is founded on the assumption of asymmetry of information and conflicts of interests between managers and providers of funds. According to M. C. Jenson and W. H. Meckling, agency relationship is a contract un der which one or more persons (principal) engage another person (agent) to perform some service on their behalf, which involves delegating some decision-making authority to the agent3. In this case the relation of agency will relate the principal (owner) and his agent (manager), this last being engaged to serve the interest of the first. From these relations emanates the concept of agency costs, costs which result from the potentially opportunist character of the actors (moral hazard) and information asymmetry between the contracting ones (adverse selection). These agency costs represent the loss in rate compared to an ideal situation where there is no information asymmetry and conflict of interests. According to the theorist of agency an organisation is considered efficient if it minimise the agency costs. This purpose can be intended though an effective governance mechanism.According to Keasey et al., 1997, the most important features of an effective governance framework are owne rship structure (including institutional and managerial ownership), CEO (manager) and director (board member) remuneration, board structure (size and composition), auditing, information disclosure, and the market for corporate control. Usually, research literature related to this field use partial measures. In other delivery, governance studies treat separately the usurpation of each variable such as compensation, board size, independence and diversity, and external market forces on firm performance. However, since latest studies (Hermalin Weisbach, 2003) identify the complementarities, and the correlation between these mechanisms, this study will investigate the impact of the majority of these mechanisms excluding ownership due to lack of data on ownership structure.The most important attribute that distinguishes microfinance institutions from other is what has come to be called its dual mission of balancing a social agenda or social impact with its financial objectives. The MF I combine a social development mission (provision of financial services to the lowest income population possible), with a financial objectives that drives the institution to achieve self-sufficiency and thereby get to sustained service delivery without dependence on subsidies. These dual objectives (social outreach, and financial sustainability) make difficult the study of governance of MFIs, especially with their different types Non profit, Non-Governmental Organizations (NGOs), For-profit Microfinance Institutions, Credit Unions. This contend is surmounted by formulating and testing hypothesis based on insights from the literature on corporate governance, formers studies, governance in banks and in non profit organizations, and by estimating the impact of the governance mechanisms on both sustainability and outreach.4.1. Internal Governance mechanismThe incentives of top management have been characterized as an important mechanism of corporate governance as it ensures the alignm ent of the management and the shareholders interest (John et al., 2004). In other words, it serves as a mechanism for resolving the conflict of interest among the managers and shareholders. Brick, Palmon and Wald (2006) highlighted that director compensation should also meet performance of a firm. With regards to banking institutions, higher-powered incentives may encourage managers to take higher risks at the expense of depositors, who would suffer if the institution fails thus low pay-performance sensitivity is suggested (John John, 1993). In fact, it is turn up by Adams Mehran, 2003 Houston James, 1995 John Qian, 2003, that pay-performance sensitivity in banking in lower than other industries.Since in non-profit firm there is a growing problem of informational asymmetry between clients and managers (i.e., managers possess many crucial information about the product), it seems that the fixed management salaries is the best choice for mission-driven organizations (Easley OHar a, 1998). With the fixes salaries, the managers, indifferent between telling the truth or lying, will find it in his benefit to tell the truth. Therefore, if the client and donors find the information provided by non-profit managers more credible, the firm will be better-funded and better-performed. supposition 1. MFIs whose manager receives a fixed salary will not perform worse than MFIs whose managers receive performance based remuneration.Most guidelines recognize that the board of directors is the focal point corporate governance. The composition and structure of the board have a direct bearing on corporate governance. Board of directors is designate for the purpose of ensuring the alignment of the firm activities and its stipulate objectives. The board has the duty for making sure that the top managers are behaving in a way that will provide the optimal valuate for shareholders (Coles et al., 2001).There is a view that larger boards are better for corporate performance because they have a range of expertise to help make better decisions, and are harder for a powerful CEO to dominate. However, recent thinking has leaned towards smaller boards. Jensen (1993) and Lipton Lorsch (1992) argue that large boards are less effective and are easier for a CEO to control. When a board gets too big, it becomes difficult to co-ordinate and process problems. Smaller boards also reduce the possibility of free riding by individual directors, and increase their decision winning processes. Empirical research supports this. For example, Yermack (1996) documents that for large U.S. industrial corporations, the market values firms with smaller boards more highly. Eisenberg et al. (1998) also find negative correlation between board size and profitability when using sample of small and midsize Finnish firms. In Ghana, it has been identified that small board sizes enhances the performance of MFIs (Kyereboah-Coleman and Biekpe, 2005). Mak and Yuanto (2003) echo the above finding s in firms listed in capital of Singapore and Malaysia when they found that firm valuation is highest when board has five directors, a number considered relatively small in those markets. In a Nigerian study, Sanda et al (2003) found that, firm performance is positively related with small, as opposed to large boards.Hypothesis 2. Board size should have an inverse correlation with MFIs performanceA third common monitoring mechanism advocated by the agency perspective is a board composed of a majority of independent directors. These non- administrator or outdoors directors are believed to provide superior benefits to the firm as a result of their independence from firm management. Under this organizational design, conflicts of interest can be avoided and executive leaders can be evaluated more objectively.The literature suggested that increases in the proportion of outside directors on the board should increase firm performance as they are more effective monitors of managers (Adams a nd Mehran, 2003). The proportions of the outside directors can be measured in terms of the ratio of outside directors to board size. The positive aspect of having board independence was evidenced in a study by Byrd et al (2001) that highlighted the survival of firms in the thrift crisis due greater proportion of independent directors in the board. Kyereboah-Coleman and Biekpe (2005) found also a positive relationship between proportion of outside board members and performance of MFIs in Ghana.Hypothesis 3. MFIs performance will be touch on positively by the proportion of non-affiliated outsiders on the board.Corporate governance literature argues that board diversity in terms of women and minority representation is potentially positively related to firm performance. Board diversity promotes a better understanding for the market place, increases creativity and innovation, produces mores effective problem solving, enhances the effectiveness of corporate leadership, and promotes effec tive global relationships (Robinson and Dechant, 1997). Fondas and Sassalos, 2000 argue that diversity in board composition via greater female representation will lead to improved board governance and top management control. In microfinance, the study of Coleman, 2006 show that having women in CEOs on MFI boards enhance performance and also the more the women there are on a board, the better the performance. Furthermore, having a high fraction of women in the board would help the MFI understand its customers better so as to separate the good risk from the bad (Mersland R. et Oystein Strom R. 2007).Hypothesis 4. Board diversification and the presence of women and minority will lead to a better performance of MFI.Another principle of effective bank supervision is effective cozy audit. Internal audit helps to identify problem areas and to avoid major collapse. The internal board auditor provides independent, objective assessments on the appropriateness of the organizations internal go vernance structure and the operating effectiveness of specific governance activities. Reporting of all internal audit reports in an accurate and timely manner is essential for military rank of the institutions positioning and need for any change in strategy. Policy papers for MFIs stress the importance of internal audit and recommend that the internal auditor reports directly to the MFI board (Steinwand, 2000).Hypothesis 5. MFI allowing their internal auditors to report directly to the board should show higher financial performance.4.2. External Governance MechanismsThe external governance mechanism can be implemented as a result of the failure or the weakness of internal governance mechanisms. In the microfinance industry donors and creditors are increasingly relying on information from audited financial statement and rating agencies (Hartarska, 2005). These external governance mechanisms are an important mechanism that provides depositors, creditors and shareholders with credibl e assurances that they will refrain from fraudulent activities. In other words it reduces informational asymmetries between the different stakeholders and the firm (Healy Palepu, 2001).Audited financial statements are an important tool for the assessment of MFIs by regulators and capital markets. They form an important part of the effective corporate governance. The auditors role is to provide a disinterested an objective view of the financial statements of the MFI in the line with generally accepted accounting standards. It is a mean to ensure potential investors and donors that an MFI complies with the accounting practices and managers do not misrepresent financial information.Hypothesis 6. MFIs with financial statement audited achieve better performance than MFIs without financial statement audited.According to Hartarska (2005), in the absence of developed equity and debt market, donors and investors rely on independent evaluation of MFIs performance. A MFIs rating reflects a ra ting agencys opinion of entitys overall creditworthiness and its mental ability to satisfy its financial obligations. The raters evaluate objectively and independently the corporate governance in MFI and rank it on a relative rating scale that would still comparison. Unlike typical rating agencies that rate the riskiness of issued debt, microfinance rating agencies rate the overall performance of the MFI in terms of outreach and sustainability.Hypothesis 7. Rating helps MFIs to achieve better resultsMany MFIs around the world operating as NGOs have increased their assets, reorganized, and transformed into regulated entities that can capture savings deposits. A regulated MFI has more chance to earn customer trust, and by the way to have a higher financial performance. Hence, regulation is crucial for microfinance sector development since it affect MFI performance by changing the internal rule of the organization. It implies the access to an important and low-cost funding source thro ugh the right to mobilise savings. Due to this effect, the MFI win the prospect to increase the number of clients, but also to increase average loan amounts for existing borrowers. Moreover, if demands to fulfill regulatory requirements divert attention away from serving the poor, and hold back innovation in lending technology that has been the driving force behind MFIsability to serve even poorer borrowers, regulatory involvement will lead to mission-drift (Hartarska, 2007). Therefore, the personal effects upon depth and breadth in outreach may be uncertain as well, either upon depth or breadth, or a combination of the two (Mersland R. Oystein Strom R. 2007).Hypothesis 8. Regulation may guide the MFIs to fulfill better sustainability, but not to achieve better outreach.5. Data and methodological issuesData for this study are issued from various sources. The major part comes from a survey conducted by the author in 2006 in order to test the efficiency of microfinance institution i n Mediterranean (Ben Soltane, 2008). The performance variables and some governance variables are also obtained from the annual financial reports of the microfinance institutions collected from Microfinance Information Exchange (MIX) a non governmental organization whose object is to promote the re-sentencing of information on the microfinance sector around the world4. All these information are updated and completed by a interrogative moodnaire dealing fundamentally with detailed question on governance addressed to the MFIs in the region. The response rate was 58% with 40 institutions.A special questionnaire was also addressed to the Mediterranean microfinance institutions that dont figure in the MIX MARKET data base. The response rate for these MFIs was weak and near 20%, with four institutions. Due to missed data, only two institutions are taken into account. The final sample comprises 42 institutions working in 20 countries. Our sample is quite representative of the Mediterranea n microfinance industry as well as of the governance mechanisms and the performance of MFIs in the region.Following Hartarska (2005) works, our empirical model used to test the hypothesis include five major potential groups of determinants and is on the formWhere is a performance variable for MFI i in country j at time t are MFI specific variables are management specific variables are board-specific variables, are external governance mechanisms and are the country-specific macroeconomic variables. It is crucial to mention at this level that our choice of a single-equation model is supported by the hypothesis that various governance mechanisms are endogenously determined is not always supported by empirical evidence5.Since MFIs are special institutions having a dual mission, their performance is measured in terms of outreach and sustainability. Outreach is measured in breath and depth. Breach of outreach (NAB) is the log of active borrowers, depth of outreach (DEPTH6), is the average loan size on gross domestic product per capita. Sustainability is measured by return on assets (ROA) which is a standard finance literature measure of performance, and by operational self-sufficiency (OSS). This variable measures how well the MFI can cover its costs through operating revenues.Table 1. Definitions of dependent variables used in analysesVariable ExplanationSocial Performance OutreachNAB Logarithm of the number of current borrowersDEPTH The average loan size on GDP per capitaFinancial Performance SustainabilityROA Return On AssetsOSS Operational Self-SufficiencyMFI specific variables () are MFI size measured by the logarithm of total assets, MFI age measured in years sine commencement, and MFI type measured by three dummies (NGO, Nonbank Financial Institution, and bank). Since further studies (Navagas, Conning, Gonzalez-vega, 2003) show that the type of lending methodology used influences the success of these organization, our study include a variable Individual whic h is a dummy that takes the value of one if the MFI used individual lending technology.Variables built-in are Fixed-wage, which is a dummy for pay not based on performance, Experience is used to representative for a mangers quality and is measured by the years of work experience. The board-specific variables contains Board-size, measured by the number of board members Employees measured as the proportion of MFI employees who are take board members Independent measured as the proportion of non-affiliated board members Women measured as the proportion of women in the board Internal Board Auditor is a dummy variable that takes the value of one if there was an internal auditor with direct access to the board.The variables included in are Regulation, which is a dummy that takes the value of one if the MFI was supervised by the central bank or other bank supervisory agency Rated is a variable that indicates whether the MFI was subject to independent evaluation or rating by an outside or ganization Audited is a dummy that take also the value of one if there was an audited financial statement in the year t-1.Since MFI are issued from north and south of the Mediterranean, the dissimilarity in economic conditions across countries are controlled by the size of the economy (Economy size), measured by the logarithm of a countrys GDP, and by the average inflation rate (Inflation), measured by the average consumer price index. These variables are issued from the World Bank Development Indicators. We wanted also to build a variable that take account of the institutional differences between countries but we did not find an adequate measure.Table 2. Definitions of independent variables used in analysesVariableExplanationFixed-wage

Literature review construction project costs

Literature review mental synthesis project beThis chapter comprises of literature review, quotes of the various cerebrate stimulates done in this area of studies.The succeederion of manifestation projects right from inception to completion is assuming great importance in the construction industry. The author of this project work believes that, this shift in vigilance on constructioin delays is taking it rightful place of importance in the global construction sector. Clients or consumers are no longer content merely with marginal cost and adequate functional exercise for their projects increasing interest rates, inflation and other commercial pressures, among other factors, mean that it is in many instances most efficient to complete a project within the shortest possible time.The the current hursh financial climate does non solelyow for subcontractors non to be prudent with project planning and oral communication , hence the reason for chosing to write on this subje ct.The most solid unbudgeted costs on many construction projects are the financial touchs associated with delay and waver to the works. Owners and Subcontrcators prepare one common objective to complete the project in time and within budget. It is the failure of this objective of time which leads to failure of budget and in the long run hallows rise to disputes.There is no consensus in the literature on the identification of factors which concern stipulated, planned or achieved construction times of buildings. One reason for this is that researchers have largely viewed the subject from diverse prospective. Such viewpoints acknowledge identification of discrete factors which affect productivity on site and taking a systems view of the construction process and end product (Nkado R.N, 1995)The inherent and often unanticipated attempts on construction projects present key challenges to subcontracting firms. For example, if a project is delayed or disrupted, significant resource s are engaged and management time consumed. The protrudecome can have serious consequences on corporate value. One loss-making project can wipe out the profit on 50 successful ones and significantly damage a companys reputation. In the current economic climate, claims and disputes are increasingly more(prenominal) likely.Construction delays are not a modern phenomena.The delays on some of the UKs most famous landmarks, such as St Pauls Cathederal, the Houses of Parliament and the Clifton Suspension Bridge would make the delays on more recent high profile construction projects look distinctly trifling (Lowsley et al, 2006) encumber - generally acknowledged th mt common, costly, complex nd riky problem encountered -n construction project. Becaue f th overriding ignificance f t-me fr both th proprietor (-n terminus f performance) nd th upplier (-n term f money), it - th ource f frequent dipute nd claim leading t lawuit.Delay sink -n almost every construction project nd th magnitude f thee delay varie coniderably frm project t project. ome project re yet few day behind chedule ome re delayed b over year. o it - eential t define th echt caue f delay -n order t minimize nd avoid delay -n any construction project (Ahmed et al., 2003).Chan et al (2004) conclude in a research conducted to measure the success of construction projects that, cost, time and quality are the three basic and most important performance indicators in consruction projects.Other measures such as safety, functionality and satisfaction etc. are also currently attracting increasing attention.Chan et al, (2004) accentuated that accurate construction planning is a key factor in ensuring the delivery of a project on schedule and within budget. As almost all projects comprise a large subdue of interdependent items of work and involve many participants, reliable plans and accurate progress-recording mechanisms become essential to project success.Mbachu, et al(2005) discover the sources of strat egies for minimising risks in the construction projects and categorised the results into intragroup and away sources.The internal sources of risks, which do under the insure of clients ,consultants and Subcontractors , involve those risk elements emanationg from their acts or omissions in the project development process. They noted that, the most frequently mentioned risk elements under client sources include frequent and late changes at critical stages of the visualize and construction process, scurvy leadership and inadequate supervisions on the part of Contractors and subcontractors, low productivity, re-work and lossess, delays in supplying equipment, corporals and components.For the consultants, partial visualize information and delay in supplying information required by contractors on site.The external risk sources, which are not within the control of the client and the project team, could be segregated into economic and globalisation dynamics, unforeseen circumstanc es/force majeue, government, statutory, political controls, health and safety risk elements and socio-cultural issue.smia12010-07-21T162900Who says this is so? If it5s you then you nned to say what leads you to this concluswionyouType of delayA delay to a construction project generally means delay to the planned completion witness or a delay to a particular activity or sequence of activities (Lowsley et al, 2006)Delays can be grouped in the following four large-minded categories according to how they operate contr very non-excusable delays excusable non- remunerative delays excusable compensable delays and coinciding delayThe Bureau of Engineering Project Delivery Manual version 2 released in October 2006 smia12010-07-21T163000You need to give a proper reference for this. Who are the Bureau of Engineering Project Delivery?categorised construction delays in three basic types of delays, namely Excusable-Non-Compensatory ( coincident), Non-Excusable and Excusable-Compensatory.Non Ex cusable DelayNon-Excusable delays are events that are within the Subcontractors control or that are foreseeable. These delays might be the results of late performance of Subcontractors, untimely performance by suppliers, faulty workmanship by the subcontractor, underestimate of productivity, inadequate scheduling or mamanagement, equipment breakdowns, staffing problems, a project specific do work strikes caused by either the Subcontractors with the labour representative or by unfair labour practices(Trauner et al,2009)Excusable Non salaried DelayAn excusable delay is caused by factors that are not foreseeable, beyond the Subcontractors control .The implication of the term means that, neither party is at fault under the damage and conditions of the contract and has agreed to share the risk and consequences when excusable events occur. The Subcontractor will not attain compensation for the cost of delay, alone he will be entitled for an additional time to smia12010-07-21T163100 et ernally? Dosent this depend on the terms of his sub-contract? complete his work and is also relieved from any contractually imposed liquidated damages for the period of delay (Ahmed et al, 2003)2.5 Excusable Compensable Delay(Ahmed et al, 2003) acknowledged that, compensable delays are those that are generally caused by the owner or its agents. If the delay is compensable, then the contractor is entitled not only to an extension of time only also to an adjustment for any increase in costs caused by the delay. Owner-issued contracts specifically address some potential compensable delays and provide equitable adjustments. The usual equitable adjustable clauses in owner issued contracts that apply are Changes, Dithering Site Conditionsmia12010-07-21T163200What does this mean?, and Suspension2.6 Concurrent delaysThe concept of concurrent delay has become a very common presentation as part of some analysis of construction delays. The concurrency argument is not just from the standpoint of determining the projects critical delays but from the standpoint of assigning responsibility for damages associated with delays to the critical course of action. Owners will often cite concurrent delays by the contractor as a reason for issuing a time extension without additional compensation.Contractors will often cite concurrent delays by the owners as a reason why liquilidated damages should not be assessed for its delays. Concurrent delays are separate delays to the critical path that occur at the identical time. (Lowsley et al, 2006)Rubin et al. (1983) delineate concurrent delays as the situation in which two or more delays occur at the same time either of which had it occurred alone, would have affected the eventual(prenominal) completion date. It means each of the delays must independently affect the critical path.Reynolds et al (2001) argue that to be considered concurrent delays, the delays need not commence just now at the same time.Arditi et al (1995) had a view t hat, the delays need not occur in the same activity on the same critical path but whitethorn exist in different activities on parallel critical path as well.The SCL Protocol (SCL, 2002) describe a true concurrent delay as the occurrences of the delays, one an employer risk event and the other a contractor risk event, at the same time, and their effects felt at the same time. This occurrence is, however, extremely rare in practice since time is infinitely divisible. For instance, two delay events occurring on the same day would not necessarily be true concurrent delays because one may have occurred in the morning while the other in the afternoon. Concurrent delay is also rather deceivingly used to refer to the occurrence of two or more delay events at different times but their effect are felt (in on the whole or in part) at the same time.As a summary, Figure 1 classifies the different types of delays based on their various attributes.Figure 1 Delay Classifications (Nuhu Braimah 200 8)2.7 Primary Causes of DelayThere are two kinds of reason for delay in construction project external causes and internal caue.Internal causes of delay include the causes arising from four parti involved in the project. These parti include the proprietor, designers, contractor, and conultant. Other delays, which do not arise from these four parti, are based on external factors for example from the government, material suppliers, or the weather (Ahmed et al., 2003).Semple et al. (1994) found that making provisions in a construction programme for events such as weather delays reduces disputes. constitute and time claims, especially those which are difficult to quantify, regularly result in disputes among the contractual parties. Weather contingencies are very seldom adequate, in terms of progress and cost, due to the use of varied methods used in the industry for weather contingency calculations. This results in adverse client-contractor relationships.Caenell.N.J, C2005) Cited the a ppropriateness to look at the matters which actually cause delay during the works themselves. The Contractor/Subcontractors responsibly for delays arise due to a failure on the part of the contractor to carry out the planning stages of the works decent, others will be due to an inability to perform in the manner agreed in the contract.This is in line with the authors believes that, most delays are caused by inefficiencies on the part of the Subcontractors.Employers responsibility or neutral events are caused through an act or omission of the employer or his team or by a matter which does not arise through the fault of the contractor. These are governed by the contract conditions.A useful list according to Carnell N.J (2005) is listed in Clause 25.4 of JCT 98 and includesForce majeure,Exceptionally adverse weather conditions,Clause 22 perils(flood and the like),Civil commotion, strike or lock out,Compliance with architects instructions,Non-receipt of essential information,Delays by nominated suppliers or sub-contractors, artisans and tradesmen,Government action,Restrictions on the availability of labour or materials,Delays by,statutory undertakers,Delays in giving access to the worksAhmed et al, (2003) also mentioned the following as some possible causes of delays in construction project in nowadays possessive decision-making mechanism, highly bureaucratic organization, insufficient data collection and survey before designSite topography is changed after design,Lack of coordination at design phase,Inadequate review,Improper inspection approach,Different attitude between the consultant and contractors/subcontractors,Financial difficulties,Inexperience personnel,Insufficient number of staffs,Deficiency in project coordination,time spent to find sub contractors,company who is appropriate for each task,Often changing Sub -contracting company,Inadequate and old equipment,Lack of high-technology equipment and Harvest time.Ahmed et al (2003) cited Ogunlana et all ( 2001) as having studied the delays in Thailand, as an example of developing economies.They concluded that the problems of the construction industry in developing economies could be nested in three layers(1) line of shortages or inadequacies on industry infrastructure, mainly supply of resources, (2) Problems caused by clients and consultants and (3) Problems caused by incompetence of Contractors.Assaf et al (1995) Listed 56 extensive causes of disputes over delay and identified them as shortage of construction material, changes in types and specifications during construction, slow delivery of material, damage of material in storage, delay in the special manufacture of the building material, shortage of labour, labour skills, nationality of labourers, equipment failure, equipment shortage, unskilled operators, slow delivery of equipment, equipment productivity, financing by Contractor during construction, delays in Contractors progress payment by Owner, cash problems during constru ction, design changes by Owner or his agent during construction, design errors made by designers, foundation conditions smia12010-07-21T163500These would be far better rpesented as a bullet pointed listencountered in the field, mistake in soil investigation, water table conditions on site, geological problems on site, obtaining permits from municipality, obtaining permits for labourers, excessive bureaucracy in project Owner operation, building code used in the design of the project, preparation and approval of shop drawings, waiting for sample material approval, preparation of scheduling networks and revisions, lack of training personnel and management support, lack of database in estimating activity duration and resources, judgement of experience in estimating time and resources, project delivery systems used, hot weather effect on construction activities, insufficient useable utilities on site, the relationship between different subcontractors schedule, the conflict between the c onsultant and the Contractor, uncooperative Owners, slowness of the Owner decision making process, the joint ownership of the project, poor organization, insufficient communication between Owner and designer at the design phase, inaccessibility of professional construction management, inadequate early planning of the project, inspection and test procedures used in the projects, errors committed during field, application of quality control based on foreign specification, controlling subcontractors by general Contractors in the execution of the works, the unavailability of financial incentives for Contractor to finish ahead of schedule, negotiations and obtaining of contracts, legal disputes between various parties, social and cultural factors, accidents during construction .Ahmed et al. (2003) maintained that the iue of responsibility for delay - related to whether the supplier - awarded or - liable for costs and additional time to complete the project. The categories of reponibilit ie areproprietor (or agent) responsible supplier will be tending(p) time extension and additional costs (indirect), where warrantedsupplier (or subcontractor) responsible supplier will not be granted time or costs and may have to pay damages/penaltiesneither party (e.g. act of God) responsible supplier will receive additional time to complete the project but no costs will be granted and no damages/penalties aeed andboth parti responsible supplier will receive additional time to complete the project but no costs will be granted and any damages/penalties aeed.smia12010-07-21T163600Always? Dosent this depend on the risk allocation in the contract?Ying et al (2005) acknowledged five factors that catch time performance as keen-sighted project scope identification, low speed of decision making, inadequate managerial skills during the planning phase, insuffiecient contractor completion and Lack of a strong organasational culture.Okumbe et al (2008) researched on Construction Indust ry perpestive on causes and effects of delays in South Africa and highlighted causes of dealy in payment as consultants inefficiency,lack of professionalism by the government employees,incompetence caused by insufficient staff,bureaucratic procedures experienced by government/client,late processing by project quantity surveyors ,late prepartion of payment certificate,claiming problems,late approval of work by architect and engineers,continous formulation of new policies by The Public procurement and Asset Disposal Board (PPADB),poor budgeting by the client,late submission of cost reports by projects quantity surveyors,lack of understanding of contractual obligations and lack of funding,late project delivery,delays, in materials supply,labour stoppage as employess may go on strike if not paid on time,cash flow problems faced by contractors,contractors claiming extension of time with costs,risk of poor workmanship,poor contract delivery and default in paying suppliesrs and employers .In addition to causes of delays and who is responsible for them, there are other delay-related effects that may occur. High on the list is a decrease in the Contractors efficiency caused by the delays. The delays may directly cause the inefficiency or be caused by the inefficiency.Gorse (2004) Suggested that a well-evidenced claim, supported by an appropraite documentation, that properly establishes cause and effect and reasonably quantities the losses for each event will probably succeeds.Frimpong et al (2003)Conducted a survey on the causes of delay and cost overruns in construction of groundwater projects in a developing countriesGhana as a case study and the main conclusions of the survey weremonthly payments difficulties from agencies,matarial procurement,poor technical performance,escalation of matarial prices accordinging to their degree of influence and theses were considered as major factors.The other factors that emerged as not very important ,but of interest were,bad wea ther,unfavorable geological conditions.Ahmed et al (2003) carried out a research which revealed the ranking of design related key delays.The most general design related caused delay was found to be taking place during the inspection phase followed by material/fabrication period, poor subcontract performance, material procurement and construction mistake as shown on figure 2.Source Ahmed et al. ( 2003)Figure 2 Ranking of design related key delaysEffects of Delay on Construction CostA brief review of text books and reports smia12010-07-21T163800What books and reports? You should at least give some example referencesreveal that construction excellence has not only become an option but a necessity, if the UK construction industry is to survive economics dynamics and changing social needs. Considering the industry is one of the pillars of the domestic economy making approximately 10 percent of Gross Domestic Product (GDP) and employing considerable number of workers, it is important to n ote that construction excellence is critical for the UK economy and its future.When a project is delayed, the owner, Contractor, or both may incur added costs. The determination of the amount of these costs is based on the results from the delay analysis and the determination of liability once the critical delays have been identified. (Trauner et al, 2009)More importantly, the construction industry needs to improve itself in order to increase profitability, quality of deliverables and client needs before it can contribute to the economy.There are many possible factors that can cause actual labour costs to exceed estimated costs such as engineering errors and omissions, excessive changes, delay and acceleration and weather. These factors may require contractors to work out of sequence, fill more manpower than planned, work scheduled overtime and utilize more costly methods of construction. (Borcherding et al, 2006).Trauner et al (2009) listed the following as examples of how delays can lead to inefficiencies.Shifts in construction sections-A delay to a project can shift work originally scheduled for one season into a different season.Availability of resources-Delays can affect the availability or resources in the areas of manpower, subcontracts or equipment.Manpower levels and distribution-Changes may be needed in terms of additions manpower, erratic staffing or variations in preferred/ optimal gang size.Lowe et al (2006) described disputes as being the source of possible time and cost overrun and possible adversarial relationships between the different parties. This is not have to either the Owner or the Contractor. Cost overrun might lead to the project being unsuccessful, unfeasible or invalidate any benefits. Although avoiding disputes has been suggested, this is not ordinarily possible and where disputes cannot be avoided efforts should be made to manage and contain the consequences. It is to the benefit of both the Employer and the Subcontractor to man age disputes towards a resolution as this will safeguard the success of the project.Cormican (1985) observed that the construction industry in UK is always at the top of the bankruptcy league and the most dangerous of all sectors. These unhealthy developments underpin the overabundant abandonment of projects and undermine the viability and sustainability of the construction industry.Akinci et al (1998) categorised risk factors affecting cost performance into organisation specific, global and acts of God. The organisation specific risks are internal risks related to the organisations resources and management including labour skills and availability, material delivery and quality, equipment reliability and availability, and managerial efficiency. Global risks are those that transcend the boundaries of the contracting organisation yet having large impact on it. These include estimating related, design related, level of competition, fraudulent practices, construction related, economic r elated and political relatedsmia12010-07-21T164000This is OK as far as it goes, but the literature revierw is supposed to be a CRITICAL review yours is really just a list of someone said this.You really need to summariuse at the end what the key issues are from your literature review, and how they relate to your particular problem..