The Benefits of Microcredit to Bangladesh Essay Example for Free

The Benefits of Microcredit to Bangladesh Essay Bangladesh, with a population of more than 140 million, is one of the most densely populated countries in the world. Almost half of the total population is still living below the poverty line earning less than $1 a day. The various dimensions of the country’s poverty are manifested in terms of inequality in income distribution (in favor of urban areas), wage differentials between the formal and informal sectors, dramatic increases in the cost of living, unemployment and internal migration. However, progress on a range of social indicators in Bangladesh over the last fifteen years has been striking in certain areas, and these have been endorsed largely to the mix of public and private service provision, including the pioneering approach of microfinance institutions (MFIs). The government of Bangladesh faces an enormous challenge in reducing its poverty. However, the government cannot act alone as it cannot command all the resources and personnel to maintain progress in poverty alleviation. The MFIs have taken a key role in poverty improvement efforts and have been providing credit to these poor people who lack savings and capital but want jobs in the farm and non-farm sectors. The banking sector in Bangladesh is dominated by the four state- owned commercial banks, but in addition there are five government owned specialized banks, 30 domestic private banks, and 12 foreign banks. A few of these banks do lend extensively to rural areas most don’t even look at the rural areas of the country for lending money. But the poor people do not get access to formal financial institutions due to the lack of physical collateral. Unlike other countries, Bangladesh does not a have a proper substructure of small banks operating at a local level, and thus a strong structure NGO microfinance sector had been developed in Bangladesh. These MFIs have been able to reach the poor with collateral-free loans at affordable costs and can thus help the poor become self-employed. The micro-finance sector in Bangladesh is one of the worlds largest. Bangladeshi MFIs are best known for their groundbreaking, large-scale provision of microfinance services, principally tiny collateral-free loans to poor women. Microcredit programs in Bangladesh are implemented by NGOs, Grameen Bank, state-owned commercial banks, private commercial banks, and specialized programs of some ministries of Bangladesh government. In the microfinance sector total loan outstanding is around TK 200 billion and savings TK140 billion that have been rendering among 30 poor people which help them to be self-employed that accelerates overall economic development process of the country. Through the financial services of microcredit, these poor people are engaging themselves in various income-generating activities and around 30 million poor people are directly benefited from microcredit programs. Credit services of this sector can be categorized into six broad groups: 1. General microcredit for small-scale self employment based activities, 2. Microenterprise loans, 3. Loans for ultra poor, 4. Agricultural loans, 5. Seasonal loans, and 6. Loans for disaster management. Loan amounts up to BDT 30,000 are generally considered as microcredit; loans above this amount are considered as microenterprise loans. The Microcredit Regulatory Authority (MRA), established by the government in August 2006, received applications from more than 5000 private institutions (NGO-MFIs). But, around 1000 applications of them were found to be very small organizations that had fewer than 1000 borrowers or less than the USD 58,000 in outstanding loans that is generally considered as the minimum initial operating portfolio of a single branched MFI to be sustainable. However, till June 2010 the MRA had approved licenses in favor of 552 NGOs and 2910 have been rejected due to not meeting licensing criteria, such as non-existence of operations at field, inappropriate registration as an NGO, inadequate financial information, and so on. Size and growth: According to the size of institutions in terms of the number of borrowers served, MRA categorizes MFIs into five major types: very large, large, medium, small and very small. There are only two very large MFIs, viz., BRAC ASA, each serving over four million borrowers. Table-2 shows year-wise number and percentage of the total number of institutions under these five categories for the last four years. Currently there are only 21 medium, 16 large and 2 very large MFIs operating in Bangladesh, together they constitute only 8 percent of the total. 92 percent NGO-MFIs are still either small or very small covering not more than 17 percent share of the market in terms of outreach and operations. Challenges: Despite certain success in reaching the poorer groups of households, it has been estimated that certain groups of extreme poor households do not take part in microcredit program. Geographical coverage of microcredit operation varies, with coverage thinnest in the poorer, more remote and less populous districts of the country’s north and southwest. Considering the geographical coverage of the MFIs in Bangladesh, more than 80 percent of the MF-NGOs have less than 5 branch offices and about half of them do not have any branch office at all. In recent years, there have been some efforts in reaching these households by offering more flexible repayment schedules with a smaller loan sizes. Several studies also show that 15-30 percent of microcredit members are from ‘non-target’ groups as also measured by householder’s land size. The success of microcredit programs depends on the following challenges: 1. Enhancing the Resources versus Reaching the Poor Client 2. Smaller versus Larger loan sizes 3. Increase in client-base versus Sustainability of MFIs Achievements: Women empowerment: Women are given equal access to the Grameen schemes as a result; they have raised their status, lessened their dependency on their husbands and improved their homes and nutritional standards of their children. 90% of women who used begging as a means of survival now have roof over their heads and can support themselves. Group Savings: Group Savings have proven successful as group lending. Group savings have reached 698 million taka (US $ 23 Million approx), out of which 570 million taka 9US 419 million) are saved by women. The bank requires its borrowers to save. Each borrower saves one taka (2-5 cents) each week. As of today Grameen bank has collected so much money that they can collectively buy the largest enterprise in the country. The poorest of the poor in the country are entering the coterie of the elites. Shift in the occupational pattern: There has been a shift in the occupational graph from agricultural waged labor considered socially inferior to self- employed petty trader. Micro-credit has succeeded in graduating the poor from poverty level to a self sustained position. Builds Trust among Poor: Grameen has put trust back into the picture. The working of the Grameen is largely through trust. It believes in the enormous potential of each and every human being given enabling environment, even the poorest of the poor can peel off doubts and start exploring their abilities to find a life with full human dignity. Spurs social change: Micro credit had done what billions of dollars worth of AWACS (Air Borne Warnings and Control System) and Patriot missiles cannot, for decades the west has tried to defeat fanatical extremists militarily, this has been bloody, costly and highly unsuccessful, but quietly every day, the attraction of the militant Islam is being blunted at the ballot box and in the people’s hearts and minds, than to the economic development of the poor. Micro credit helps solve a host of intractable, long-term social ills related to poverty. In Bangladesh the use of contraception is one of the first behaviors to change. In fact formation of groups of women to meet regularly helps in discussing new ideas and sharing information, this serves as a potent factor in bringing about broad based social change, otherwise women are isolated. In Bangladesh micro-credit has led to an increase in participation of people in the mainstream economic and political process of society, and overall human development . Very low default rate: The default rate is astonishingly low compared to what Bangladesh commercial banks suffer. It is about 2% as compared to about 70% for agricultural loans and 90% for industrial loans. Yunus Says† The difference lies in the psychology of the borrowers. The rich can evade the consequences of non- payment, the poor cannot. They value loan sharks so much; that they are only too grateful for once aims a lifetime opportunity to improve them†. Micro credit has graduated the rural poor from the informal capital market controlled by the moneylender and local elite to institutionalized banking. Positive impact on the families: Independent studies show that micro credit has a host of positive impacts on the families that receive it. A recent world bank study by Shahid Khondkar (2003) show that micro-credit programs operating in Bangladesh over a long period of time have produced a greater impact on extreme poverty than on moderate poverty.† The results of this study indicate that micro credit not only affects the welfare of participants and non-participants, but also the aggregate welfare at the village level. In fact even in disaster situations and post conflict areas, it has helped rebuild economic activities and livelihoods. Hence acting as the coping mechanisms of the poor. This was successfully demonstrated during the floods in Bangladesh in 1998 Problems and constraints: 1. How to expand the outreach of micro credit. 2. Lack of funds. 3. Lack of initiative in creating financing institutions. 4. Absence of legal framework for creating micro credit institutions. 5. Lack of conceptual clarity 6. Absence of regulatory framework United Nations response: United Nations: General Assembly Resolution 52/194. The report of the Secretary-General on the International Year for the Eradication of Poverty (1996) and the First United Nations Decade for the Eradication of Poverty (1997-2006), recognizes that people living in poverty are innately capable of working their way out of poverty with dignity, and they demonstrate creative potential to improve their situation when an enabling environment and the right opportunities exist. Noting that in many countries of the world, micro credit programmes, by providing access to small loans to people living in poverty, have succeeded in generating productive self-employment. Freeing the people from the bondage of poverty leading to their increasing participation in the mainstream economic and political processes of the society. The UN recognizes that micro credit programmers, in addition to their role in the eradication of poverty, have also been a contributing factor to the social and human development. Conclusion: Strengthening local government is one of the most desired institutional changes needed for poverty reduction. Decentralization and participation are the buzzwords. SHARE and ASA and GBUP in India, Nirdhan and SBP in Nepal, KASHF in Pakistan-All these are the leading replicas of Grameen Bank of Bangladesh. The question to be asked is why is it that the success rate of these institutions is not the same as that of its model i.e. the Grameen Bank? This needs to be looked into. The need of the hour is greater awareness and consciousness among the populace of the third world about the feasibility and the importance of the use of micro credit in their respective countries. GRAMEEN BANK†¦ The system of this bank is based on the idea that the poor have skills that are under-utilized. A group-based credit approach is applied which utilizes the peer pressure within the group to ensure the borrowers follow through and use caution in conducting their financial affairs with strict discipline, ensuring repayment eventually and allowing the borrowers to develop good credit standing. The bank also accepts deposits, provides other services, and runs several development-oriented businesses including fabric, telephone and energy companies. Another distinctive feature of the banks credit program is that the overwhelming majority (98%) of its borrowers are women. Grameen Bank continued to expand its outreach in Bangladesh in 2009 to bring new areas and new members within its operational fold. During the year, the bank opened 23 new branches bringing the total number of branches to 2,562 that dot the length and breadth of rural Bangladesh. Bank’s network40 Zonal, 268 Area and 2,562 branch level officesnow encompasses 83,458 or over 99% of the country’s nearly 84,000 villages located in 479 upazilas or sub-districts in all 64 districts of Bangladesh. A fresh batch of 300,413 people joined the Grameen family in 2009, swelling the aggregate number to a staggering 7.97 million members.

Indian Luxury Consumer Essay Example for Free

Indian Luxury Consumer Essay The Indian Luxury Consumer: Rapidly maturing and looking for more Any study of the luxury market needs to conclusively address core questions around the luxury customer Who, What and Where. To fully understand answers to these questions, we interviewed existing and prospective customers across various locations, income and age groups. We also interviewed industry leaders across all luxury categories on the Indian consumer and the changes that they have observed over the last few years. In this section, we shall provide answers to three basic questions: 1. What constitutes luxury in India? 2. Who is the luxury consumer? What has changed in the last 2-3 years? 3. How is the behavior of the luxury consumer changing? 4. What are their specific tastes and preferences? 5. Where do they make their purchase? Luxury in India – more aspirational luxury than ultimate luxury Industry leaders across categories believe that luxury is not only determined by price. Exclusivity is a far more important parameter for a product or service to be called luxury. As such customization, uniqueness, and even understatement is important. Design, use of exquisite materials, presentation and personalized service all contribute to luxury. Consumers also talk about exclusivity, uniqueness and appeal to personal taste. This is not as yet corroborated by increased sales of â€Å"ultimate and subtle† luxury products. The majority of the market is still far away from this definition and brand/logo/badge value drive luxury purchases very clearly. Size, flashiness, clearly visible logos, well known brand are the key considerations in the purchase. That said, traditional attributes such as high quality, heritage, longevity, the â€Å"stories† associated with brands are beginning to emerge as drivers of purchase. Bulk of the Indian market is still dominated by the more accessible and aspirational luxury products. Status – announcing your arrival into the elite segment of the society – is the biggest motivation still. The mindset is still that of an â€Å"aspirer† not that of a â€Å"connoisseur†. The Indian luxury consumer new insights The Indian luxury consumer has been studied a few times now. Various segments have been identiofied by earlier studies. The old money/new money/gold cuffs/.. (Luxury Brands) and Industrialist/Corporate/Professional/ (Economic Times – A. T. Kearney India Luxury Review 2007). The focus of our consumer research was to find out how the consumer has evolved in the last 3-4 years. The accepted wisdom is that industrialists and traditionally wealthy families is the largest segment, senior corporate executives are a smaller but emerging segment and young professionals are entering the market. Our research has shown that by and large the consumer segments that constitute the bulk of the market have not changed significantly, although finer sub-segments are now more apparent: Medium size enterprise owners: This is the largest segment in terms of number these are typically the medium enterprise owners – industrialists and traders who run businesses with revenues upwards of 50 cr. The source of their spending is the surpluses generated by the business. Many of these have grown as the economy grew rapidly in the last twenty years. Their wealth is their passport to the elite segment of the society and conspicuous consumption is their way of announcing it to the society. The children who tend to be second or third generation are the bigger spenders, having been educated abroad and hence familiar with brands and the luxury way of living. They are now educating and enticing their more conservative elder generation into spending. Interviews also reveal that those who generate cash need to necessarily spend it and luxury goods are a good avenue for spending. These are very frequent luxury consumers and consume the entire gamut of products and services and some assets like cars and real estate. These consumers shop around for deals and bargains, including international travel. Traditionally wealthy families / large industrialists: This group comprises two sub-segments – the first is the traditionally wealthy families – who have been consuming luxury for several decades and go for the finer things in life. The largest business houses in the country and historically wealthy Marwari, Gujarati, Parsi, Punjabi families epitomize this class. The other sub segment comprises the promoters of some very large businesses which have come up in the last two decades and have created disproportionate wealth very quickly. Builders, miners, diamond merchants, stock brokers, new age enterprise owners fall in this category. Many of them have migrated to the highest ladder of luxury consumption very quickly by acquiring yachts, jets, houses and really expensive cars. Corporate executives: Senior executives of corporate India who are paid in excess of Rs. 1 crore and bankers who earn big bonuses epitomize this category. These executives are well traveled and are aware of brands. Most of these are in their mid-late forties and represent some of the brightest minds in the country. Many of them though have come from middle class backgrounds and hence have a conservative approach on conspicuous spending. While they can well afford to spend, their propensity to spend is low. A gradual change is being seen as they see more and more of their compatriots spend. These consumers spend on some luxury products such as watches, accessories, select apparel, fine dining, international and domestic travel and high end cars. They also tend to shop on their frequent international trips to get the best deals. Self employed professionals: These comprise of professionals such as lawyers, doctors and architects: A small but niche segment, comprising the top stars in their profession, who have made it big. While many of these come from middle class backgrounds, they use their new found wealth to live a good life. They shop for the entire range of products and services although are found less often at the absolute top end of the ladder. Young professionals: Working in service industries – these earn the least compared to the others, but since they don’t have family responsibilities, the disposable part of the income is high. They are in tune with the latest fashion trends, travel abroad once in a while and believe in spending on what they fancy. They tend to consume entry level products and are infrequent consumers. Other segments: Expatriates: Expatriates in the country are growing and they are staying for longer periods: These are on expatriate packages and are accustomed to luxury consumption in other parts of the world. However most of these fly back very frequently and stack up on their luxury products need on these trips. Luxury services and assets (mostly cars) are influenced in a small way by this segment. The segment is definitely driving the increasing awareness and need for luxury products Politicians and bureaucrats: Interviews reveal that politicians and bureaucrats are a large segment for all luxury products, but have a much more pronounced preference for jewellery, watches, cars and real estate. Contrary to the popular perception that is generated by the flashy lifestyles of film and television actors, they are not large spenders by themselves and collectively it is still not a large segment. Luxury consumption of film and TV stars is paid for by the producers. They alsoi shop abroad a lot. Many celebrities belong to rich business families and owe their luxury consumption to their family wealth or get a lot of luxury products as gifts. Citywise sub-segments: There are sub-segments in each city that drive most of the purchases: * Mumbai stock brokers, diamond merchants/exporters * Delhi – industrialists, traditionally wealthy, politicians, bureaucrats * Chennai – traditionally rich, industrialists * Bangalore – builders, IT top brass * Kolkata – traditionally wealthy Marwari businessmen, traders Age profile. The average consumer is still young – between 30-45. This is in line with the overall demographics and is expected to stay that way for some time. It is thus a young luxury market in contrast with some of the mature markets like Europe and the USA where the average consumer is much older (need some data here). Consumer Behavior We found that while the average Indian luxury customer values High Quality, Exclusivity and Social Appeal as key drivers of luxury purchase, they are also very Price Conscious and often straddled with a â€Å"middle-class mindset†. Corporate Professionals in particular tend to be more price sensitive than the Traditionally Wealthy and Business Owners. This is also due to the fact that the average â€Å"fashion consciousness† of Indian consumers is still quite low – most consumers prefer â€Å"well known† brands and make luxury purchases for â€Å"brand value† and not â€Å"fashion value†. The table below summarises the typical behavior patterns of the consumers in each of the segments | Medium Size Enterprise Owners| Traditionally Wealthy Families Large Industrialists| Corporate Executives| Self Employed Professionals| Young Professionals| Average Age| | | | | |. Awareness| Low| High| High| Medium| High| Fashion consciousness ( apparel and accessories)| Low| High| Low| Low| High| Price Consciousness| High| Low| High| Very High| Very High| Badge Consciousness| High| Medium-Low| High| High| Very High| Propensity to buy overseas| High| High| High| High| High| Greater awareness rapidly increasing and the entry of brands, development of malls and magazines has helped. Compared to three-four years ago, the number of people who can correctly pronounce Chanel and Gucci correctly has increased dramatically, although there is still a long way to go. What is interesting to note is that the Indian luxury customer is maturing rapidly and brand awareness has increased significantly over the past 3-5 years. Brands are beginning to see loyal customers who have their preferred set of brands. Among brands, the pedigree of a brand is very important. There is a heritage value with luxury brands – customer typically put more value on brands that have been around for many years. When it came to Indian brands, there is clearly a mixed perception. While most customers were willing to purchase luxury services from Indian players, the luxury products market still has a long way to go. Specifically in services, Indian service quality is considered to be at par with the best in the world. Within products, the categories that customer preferred have a high class value attached to it. Hence very select categories like jewellery and Indian designer apparel products are considered ‘luxury’. Fashion consciousness – changing very fast, dressing for a look increasing in the metros – still a long way to go – in the words of one of the luxury fashion CEOs Indians are â€Å"sartorially challenged†. The younger members of the rich families and the young professionals are leading are leading the pack. Badge consciousness – continuing, no doubt. A logo is probably the most important thing about a product. It is easier to sell a pair of sunglasses or a polo shirt where the logo is clearly visible than a shirt where it is not so obvious. Price consciousness – here to stay. The entire industry acknowledges this and both the principals and the Indian parties strive hard to match prices to make it price neutral for the Indian consumer who would not mind taking a flight to Singapore or Dubai or ask someone to get it, if the difference is more than 3-5%. The economics is simple – its costs 15-20,000 for a return trip (economy of course! ) to Dubai or Singapore. On a product costing upwards of Rs. 200,000, this is less than 10% of the product price. That puts a limit on the amount of premium that anyone will be willing to pay for products that can be easily purchased overseas and carried back. The grey market will willingly carry products for a fraction of the cost of a return trip. The only exception is cars – where it is not possible to bring it in – either legitimately or smuggled. Propensity to buy overseas – reducing but still very significant. One interesting observation is that Indian luxury customers are not averse to buying from India, just that they feel there are better avenues abroad. One of the key challenges is to provide luxury shopping destinations that offer a variety of brands under one roof. While most of them purchased from boutiques in New York or Malls in Dubai, in India there are not many avenues for luxury purchase. While most consumers also make luxury purchases in India, shopping abroad is still by far the preferred option. Consumers have certain perceptions about luxury shopping in India, that have held them back making large scale and frequent purchases in the local market. Interviews with industry leaders reveals that the consumer wants the same package here – merchandise (range, freshness), convenience (location), price and experience (ambience, service) – with an extra expectation of service, given that this is India, where labor is cheap. The development of the Indian duty free has meant that Indians have an option of buying duty free products in India when they arrive rather than carting it all the way from popular shopping destinations overseas. Consumers still believe that the widest, most recent range is not available here and that prices are more expensive here, though at least two of these clearly are myths that need to be broken. In fashion, collections are designed for the whole world once, no one creates separate collections for India and old collections are not available. Width of range is a trade-off that has to be made depending on the depth of the market, so that is a possibility. Converting the overseas market is a big challenge for retailers. Propensity to buy from the grey market – by all accounts, this is reducing in established brands. Concerted efforts by players to bring in the latest merchandise, efforts by brands to supply products at lower prices to India and Indian retailers willing to work on thin margins has meant that the consumer now gets a good bargain. New brands which consumers want and are not available find their way through this channel. Driver of Luxury consumption: Number of HNIs, HNI Wealth or Household Income? It is generally accepted that luxury market size is positively correlated to household income (GDP/capita), the number of high networth individuals and/or their wealth. Discussions on luxury are never complete without a reference to these parameters. A correlation between the size of the luxury market, the GDP/capita, number of HNIs and HNI wealth over the years 2004-2009 shows that in terms of importance the number of high networth individuals is the most important driver, followed closely by GDP/capita and HNI wealth. Interviews with leading luxury brands in India points to the fact that family wealth is a very strong determinant of spending than household income. Consumer interviews with traditionally wealthy families indicates a very interesting pattern – they are habitual consumers of luxury and less price conscious. Some of the segments mentioned above would fall in the HNI category. However luxury consumption in India is not limited to only the HNIs. The masstige phenomenon can be observed very clearly in India. Luxury products in India are appealing to, and purchased by, middle-class consumers that do not fit the typical profile of an elite consumer segment. For these shoppers, luxury represents status and prestige, a place in society that they fit into as a result of their purchase of high-end products. This phenomenon is observed even in the large mature markets such as UK, where a large number of individual consumers buy very small volumes. Luxury goods companies develop products that re-enforce the â€Å"masstige† and drive volumes. As such it is very important to look at the other indicator of the market – the GDP/capita. In India given the fact that wealth is being created due to the rapid growth, growing household incomes are converting the middle class into emerging luxury consumers. As such there is a large segment (below the 1 cr income category) where while the wealth might be low, it is the incomes that are driving the consumption. Measured in PPP terms, 25 -100 lakhs in India is equal to $ XX-YY,000 of income in the US or EUR AA-BB,000 in Europe, which is definitely a luxury consumer. The above two factors combine to make the consumer spectrum in India very broad. Our research shows that sporadic/ infrequent luxury consumption for products and services begins when annual household income goes upwards of Rs. 20 lakhs, becomes frequent when annual household income crosses the Rs. 1 crore mark and becomes habitual when the wealth crosses the HNI milestone ($1 mn in liquid assets). For luxury assets, the markers are understandably much higher and even within assets, the ladder become quite steep as one goes higher. For example, consumer for private jets would be the top 200-400 richest families in the country – the billionaires, super rich families (the HNIs) – anywhere around 200-400 families – such as the private jets, yachts and the largest houses – earning anywhere upwards of 50 cr per annum or with family wealth in excess of 100 cr. The spectrum thus begins at rupee millionaires and goes all the way to real billionaires. While the small traditionally super wealthy families who know what absolute or real exclusive luxury means, and can be called connoisseurs, bulk of the incremental wealth generation in India has been the the handiwork of new age businessmen/industrialists who were not so wealthy a couple of generations ago. As the â€Å"new money† matures, one can expect that the tastes and preferences will also evolve. | | Rupee Millionaires| Near Millionaires| Real Millionaires| Category| Household Income| 10-25 lakhs| 25 lakhs – 1 cr| 1-5 cr| 5 cr+| | Networth/Wealth| | | | |. Estimated number of households| 2,373,000| 1,292,000| 141,000| Typical Occupations| Service Industry professionals| Corporate Executives, Self Employed Professionals| Medium Enterprise OwnersTraditionally wealthyCompany CEOs, top bankers| Large IndustrialistsTraditionally wealthy| Luxury products| Low ticket value items such as leather accessories ties, cuff-links,Wines and spirits, personal care| Watches, some apparel, accessories| All| All| Luxury Services| Spas, Infrequent fine dining| Travel, frequent fine dining, hotels, spas| All| Luxury Assets| | | Cars, YachtsReal estate, Paintings| Private jets|. Geographical distribution of consumers Luxury consumption in the country has so far been concentrated in Delhi and Mumbai with Bangalore being a distant third. Brands have been thinking of expanding their footprint beyond these cities and have been wondering about where their next store should be opened. We now believe that the distribution of the rupee millionaires is a good indicator of the luxury consumer distribution in the country. We also believe that for luxury consumption to take off a minimum critical mass is needed in a city. While Delhi and Mumbai continue to be the mainstay markets for luxury consumption, there are several other cities with a large base of potential luxury consumers. A look at the figure below suggests that while Mumbai, Delhi and Bangalore are the top three cities, other cities also have significant potential for luxury consumption. Show a chart between the number of families (X-axis) and the growth 2006-2009 (Y-axis) and number of such households as the bubble size. Use the data below. Year| 2006-07| 2009-10| | Income Category| Annual income Rs. 10,00,000/-| CAGR| Top 20 Cities ranked on the basis of Annual Market Size| Number of Households| Number of Households| | Delhi| 132,258 | 348,000| 38%| Mumbai| 98,164 | 347,000| 52%| Bangalore| 101,550 | 126,000| 7%| Thane| 69,658 | 137,000| 25%| Pune| 57,130 | 106,000| 23%| Chennai| 28,025 | 109,000| 57%| Ahmadabad| 45,224 | 91,000| 26%| Hyderabad| 26,670 | 69,000| 37%| Surat| 34,457 | 60,000| 20%| Coimbatore| 18,076 | 37,000| 27%| Salt Lake (Urban Areas in North 24 Parganas district)| 14,373 | 65,000| 65%| Kolkata| 15,790 | 94,000| 81%| Thiruvallur| 17,837 | 22,000| 7%| Lucknow| 20,654 | 29,000| 12%|. Jaipur| 27,011 | 21,000| -8%| Vadodara| 22,911 | 53,000| 32%| Nagpur| 23,637 | 46,000| 25%| Kancheepuram| 13,920 | 24,000| 20%| | 767,345 | 1,784,000 | 32%| Source: Indicus Analytics| | | | Extrapolating the growth rates seen in these cities, over the next 3 years implies that several new cities will become potential centres of luxury consumption. Kolkata, Chennai, Hyderabad, Pune, Vadodara are high potential destinations to watch out for. A quick comparison with China shows that there are atleast 20 cities/towns where luxury brands are present. Comparison between luxury stores in India and China. | LV| Burberry| Chanel| Hugo Boss| Beijing| 3| 2| 2| 9| Shanghai| 3| 2| 5| 5| Other Tier I| 6| 6| 0| 8| Tier II| 12| 10| 1| 22| Others| 11| 13| 0| 43| | LV| Burberry| Chanel| Hugo Boss| Mumbai| 2| 1| -| 1| Delhi| 2| 1| 1| 1| Bangalore| 1| 1| -| 1| Others| -| 1| -| -| We believe in the next 5-7 years, atleast 5-7 new towns will get added on the luxury map of India. We also believe that the potential in Delhi and Mumbai has not been fully exploited and that there exist a few more micro markets within these cities that need to be tapped. Pockets of wealth and good infrastructure could be the next big destinations. In Mumbai, South Mumbai, Central Mumbai, Bandra/Juhu, Powai and Thane are micro markets which are far enough from each other, have concentration of wealthy families and decent infrastructure. In Delhi, similar micro markets could be South Delhi, Gurgaon, Saket, †¦.. In summary, while the Indian luxury market is evolving, so is the luxury customer. Understanding the nuances of the customer is extremely critical to succeed in this dynamic industry.

Human resources practices influence customer satisfaction

Human resources practices influence customer satisfaction The focus of this research is on examining the process through which human resource practices influences customer satisfaction in banking sector of Pakistan. Drawing on literature from strategic human resource management, organizational behavior, and marketing, a model of HRP-CS is proposed with employee commitment as its central plank. It is argued that such commitment is influenced by organizational human resource practices and in turn it influences employee behavior towards organizational customers which is then translated into customer satisfaction. Despite heavily documented performance link between human resource practices and organizational, the term HR practices has rarely been adequately defined in the literature. In fact researchers have tested for link between HR practices and firm performance with different HR practices as input and different performance outcomes as output. Boselie and his colleagues have very rightly noted that, Still no consensus has emerged on what employee management activities should be in a comprehensive HRM checklist, since no widely accepted theoretical rationale exists for selecting practices as definitively essential to HRM. Selection of HR practices for this dissertation is based on the review of relevant studies. Liao and Chuang noted that involvement, training and performance incentives are among the most relevant for employee performance in service settings. Similarly, Boselie and his colleagues have identified training, performance based rewards and performance appraisal as the top three researched human resource practices. They argue that this might be because these practices reflect the main objectives of most conceptualisations of a strategic HRM programme. Result oriented appraisals, employment security, and profit sharing have also been reported to be strongly related to organizational performance . In the light of the above discussion, I selected human resource practices that adequately cover the areas identified by the strategic HR researchers as being important in improving organizational performance. The practices include internal career opportunities, training, result oriented appraisals, employment security, participation, and compensation. All these practices are supposed to enhance organizational human capital which will then serve as a competitive advantage for the firm. Nevertheless, a group of researchers including Jackson and Schuler , Ferris and his colleagues and Uhl- Bien et al called for more focus on social context of the relationships within the organization. These researchers argue that employee interaction within organization comprises social capital, and no firm can effectively achieve its goals until it actively utilizes its social capital along with its human capital. The central proposition of social capital theory is that network of relationships constitute valuable resource for the conduct of social affairs. As supervisor-employee interaction is among the most frequent experiences in organizational life, the importance of this relationship in social capital formation is very much understandable. Additionally, as supervisors are viewed as agents of organization, who are responsible for directing and facilitating employees job responsibilities, their attitude and behavior is viewed as indicative of organizational orientation towards their employees . Although, supervisor support or supervisor behavior may not qualify itself as firms HR practice, I have added it to the list of HR practices in my dissertation due to its importance in eliciting employee responses towards organization and its customers. Thus the list of HR practices which will be the subject of study in this dissertation are as following: Supervisor support (SS) Internal career opportunities (ICO) Training (Trg) Result-oriented appraisal (ROA) Employment security (ES) Participation in Decision Making (Part) Compensation (Comp) 3.2 Human Resource Management Practices and Customer Satisfaction: In one of the early studies on relationship between employees perception of organizational practices and customers perception of service quality, Schneider, Parkington, and Buxton noted that both are significantly correlated. They conducted a study of twenty three bank branches of a full service bank and observed a strong correlation (r = 0.67) between employees perception of branch service and customers perception of quality of service at the branch. Although, this study did not measure the role of organizational human resource practices on customers perception of service quality or customer satisfaction, it laid down the foundation for studying the role of employee attitudes and behavior in connection with customer satisfaction. In order to yield better perceptions of service quality from customers, the study emphasized to focus attention on the role of boundary personnel in retail service organizations like the branch banks . Rogg, Schmidt, Shull, and Schmitt conducted a study of 351 franchise dealerships of an automobile company to examine the impact of human resource practices on customer satisfaction. They found that HR practices effects customer satisfaction through its influence on organizational climate. This is to say that they tested for a mediating role of climate in HR-CS relationship. Their data analysis supported the hypothesis that human resource practices are significantly related to customer satisfaction, though most of the correlations were less than 0.20. While this study adds to our belief that firms human resource practices are related to its customers satisfaction, it is not without its problems. First, the data on HR practices and climate variables were collected using single instrument, thus increasing the chance of same source bias. Secondly, the data on, human resource practices and climate, variables were collected from single respondent in the organization. While the data of huma n resource practices were factual, the data on climate were attitudinal and is highly prone to single rater error. Both these problems (same source bias and single rater error) have been taken care of in this study. In another study of 137 BDG (Branch Director Group) of a full service bank, Gelade and Ivery documented that BDGs HRM practices are positively associated with customer satisfaction. They analyzed the relationship between HRM indicators (staffing level, overtime, and professional development) and organizational performance indicators (sales against targets, customer satisfaction, staff retention, and clerical accuracy) and found that almost all the three HRM indicators are positively associated with organizational performance indicators including customer satisfaction and that such association is moderated by organizational climate. Whereas most of the studies which examined the relationship between human resource practices and customer satisfaction were conducted on organizational or DMU level of analysis , Liao and Chaung investigated the factors influencing customer satisfaction using a multi-level conceptual framework. There data comprised responses of 257 employees, 44 managers, and 1993 customers from 25 franchised restaurants. The human resource practices data were collected from restaurant manager while employee performance and customer satisfaction data were based on self-reports of employees and customers respectively. The data gathered thus gathered from employees and customers were aggregated to restaurant level to analyze the HR practices customer outcome relationship at unit level. The results of the study showed that of the human resource practices only employee involvement was significantly related to the service performance, while other two HR practices (service training, and performance incent ives) did not have any significant relationship with employee performance. The study did not examine the direct effect of human resource practices on customer satisfaction; however the relationship between restaurant-level service performance and customer satisfaction was found significant. Although, this study provided a better understanding of how employees actions and perceptions influences organizational context, still it did not explicitly examines the role of employees perception of human resource practices in eliciting customer perception of service quality and customer satisfaction. While most of studies conducted on human resource management customer satisfaction relationship have focused on organizational climate as mediating variable between the two, Nishii, et al is the first one to examines the role of employees perceptions, attitudes and behaviors as the central plank of such relationship. There sample included 95 stores each with approximately 18 departments. Data was collected from 4208 employees from 362 departments across these 95 stores. Nishii and her colleagues in a multilevel analysis investigated the role of employee perceptions of why organization adopted certain human resource policies (HR attribution) in shaping their work attitudes and behaviors and the relationship between such attitudes/behaviors and customer satisfaction. The data regarding employee HR attributions, commitment and satisfaction were collected from employees at individual level, while data regarding employee behavior and customer satisfaction were collected from store manage rs and customers respectively at store-level. The individual level data were than aggregated to store level in order to analyze the relationship at store level unit of analysis. The results of this study revealed that employees attributions of human resource practices (HR attributions) are positively related to employee attitudes. They further found that unit-level attitudes were positively related to two aspects of employee behavior, measured in terms of OCB (organizational citizenship behavior). One dimension of OCB (OCB-helping) was found significantly associated with customer satisfaction. The most important finding of the study was, that the same set of HR practices may not even exhibit similar effects within a single organization. The implication is that it is not just the HR practices themselves but rather also employees perceptions of those HR practices that are important for achieving desired organizational outcomes. [italics added] . In fact focus on employee (or member) perception is not a new phenomenon in organizational studies. Almost thirty years ago Schneider, et al based on Heider , Miller, Galanter, and Pribram and Bowers noted that, Member perceptions of organizational practices and procedures are the critical data in understanding organizational behavior. No behavior in, or of, organizations occurs in the absence of perceptions. To conceptualize an organization requires a consideration of human behavior, and human behavior does not exist without perception. Similarly, drawing on Endler and Magnusson and Drazin, Glynn, and Kazanjian Bowen and Ostroff argued that individual behavior potential are not based on . . . actual situation per se, rather, the situation individuals see based on their perceptions, à ¢Ã¢â€š ¬Ã‚ ¦. Finally, Nishii and her colleagues emphasized the need for focusing more future SHRM research on the way that HR practices are enacted in organizations, as revealed in human perception à ¢Ã¢â€š ¬Ã‚ ¦. Though the study undertaken by Nishi and her colleagues is among the first to empirically test the role of employees perception of HR practices in influencing customer satisfaction, it did not actually measured the employees perception of HR practices per se, rather, it took a different approach and examined the employees perception of why particular HR practices exists and the effect of this why on customer satisfaction. Thus, the important and frequently sought after question regarding the role of employees perception of human resource practices in influencing their attitude, behavior and customer satisfaction is still unanswered in the existing literature. Based on past literature, which demonstrates a positive link between organizational HR practices and customer satisfaction, and to answer a very important, but still unanswered, question in strategic human resource management literature, I hypothesized the relationship between employees perception of HR practices and customer satisfaction as follows: H1: There will be a positive relationship between perceptions of Supervisor Support (SS) Internal Career Opportunities (ICO) Organizational Training (Trg) Human Result Oriented Appraisal (ROA) Resource Employment Security (ES) Practices (HRP) Participation in Decision Making (Part), and Compensation and customer satisfaction such that the customers interacting with employees who more positively perceive HR practices will be more satisfied and vice-versa. 3.3 Research Model: The Process through which HR Practices Influences Customer Satisfaction: As earlier noted in the introduction, the primary aim of this research is to investigate the process/path through which human resource practices influence customer satisfaction, as this is the dynamics of such process which is of immense importance to the owners and managers of the organizations. It is only through the clear and proper understanding of mediating mechanisms between HR practices and customer satisfaction that managers can avoid engaging in conflicting, and at time counter-productive, HR policies. The proposed model indicating the mediating process between perceptions of human resource practices and customer satisfaction is shown in figure 3-1. HR Practices Employee Perceptions Employee Outcome Organizational Outcome Internal Career Opportunities Result Oriented Appraisal Participation in Decision Making Employment Security Supervisor Support Training Compensation Perceived Organizational Support Customer Satisfaction Affective Commitment Customer Oriented Behavior Theoretical Framework Research Model Figure 3-1: Research Model The Influence of HR Practices on Employee Commitment and Customer Satisfaction An examination of the figure 3-1 depicts the relationship of various variables in the model. It is proposed that for human resource practices to influence customer satisfaction they are to be first perceived by the organizational employees in favorable or unfavorable manner. The cumulative employee perception about HR practices is then translated into perceived organizational support (POS), a concept which indicates the organizational commitment towards employee wellbeing. It is further proposed that this POS is reciprocated by the employees in the form of their commitment to organization, which then forms the basis for customer-oriented behavior on their part. The final part of the model deals with the boundary spanning role of the employees and hypothesizes that employee behavior influences the customers perception of service quality in organizations which ultimately leads to customer satisfaction with the organization. In what follows each of the relationships proposed in the model is examined in greater detail in the light of relevant literature. Research hypotheses based on such relationships are formulated within each section. 3.4 Human Resource Practices and Perceived Organizational Support: Perceived organizational support is defined as employees perceptions about the degree to which the organization cares about their well-being and values their contribution . Studies have shown that human resource practices signaling investments in employees are positively related to perceived organizational support . Organization support theory argues that employees assign humanlike characteristics to organizations. This tendency to personify organizations is encouraged by the organizational norms, practices and policies that prescribe employee role behaviors . This personification leads employees to believe that treatment met to them by their organizations is its indication of favor or disfavor to them . The treatment met to employees signal organizations readiness to reward increased work performance and to meet its employees needs for approval and recognition. As the organization treat its employees through the implementation of various human resource practices, I argue that the de velopment of employees global belief regarding the extent to which organizations value its members contribution and care about their wellbeing (perceived organizational support) is the reciprocation of such HR practices. Further, Eisenberger and his colleagues noted that perceived organizational support depends on attribution processes and is based on employees judgments, among other things, of organizational sincerity. Similarly, Whitener , while identifying the possible causes of different employee outcomes towards same HR practice, stressed upon the future researchers to . . . measure employees perceptions of the characteristics of human resource practices as an intervening variable between managers descriptions of human resource practices and employees perceptions of support. . In fact more and more researchers today are realizing the important role of employees perceptions in HR practices employee outcomes relationship. In a very recent publication Nishii et al have argued tha t, . . . in order for HR practices to exert their desired effect on employee attitudes and behaviors, they first have to be perceived and interpreted subjectively by employees . . . . Thus I refine my earlier argument regarding the relationship between HR practices and POS by accommodating the role of employees perception in HR-POS relationship; I hypothesize that it is employees perceptions of organizational human resource practices, instead of practices themselves, which leads to development of employees POS. The following sub-sections will review the literature about the relationship between the hypothesized HR practices and POS in detail. 3.4.1 Supervisor Support: Levinson observed that supervisory actions are often viewed as more indicative of organizations intent than solely based on supervisors personal motive. This is in part due to the fact that employees consider organizations to be responsible for legal, moral, and financial actions of its agents actions. Because supervisors act as organizational agents, the employees receipt of favorable treatment from a supervisor should contribute to POS. Additionally employees believe that managers forward their evaluation of subordinates to upper management which considerably influences managements treatment of their employees, thus perceptions of supervisor support should contribute to development of POS . Reciprocity norm dictates that perceived supervisor support should increase employees felt obligation towards supervisor and organization . H2a: There will be a positive relationship between employees perception of supervisor support (SS) and his/her perceived organizational support (POS). 3.4.2 Internal Career Opportunities: The opportunities to grow internally within the organization signals a strong positive message to employees that they are being cared and their work being valued . Such a policy also inculcates a sense of justice and fairness in the employees who feel that their stay and attachment with the organization for longer tenures is valued and rewarded . Thus the perception of availability of internal career opportunities will be linked to employees perception of organizational support. H2b: There will be positive relationship between employees perception of internal career opportunities (ICO) and his/her level of POS. 3.4.3 Training Training may be viewed as a form of capital investment in humans whether such an investment is made by firm or individual . A number of authors including Huselid and MacDuffie have counted organizational training as one of the important high-performance human resource (HR) practices. Employees, just like other human beings, have a desire to enhance their capabilities and learn new skills to improve their survivability in the environment. Training provides opportunities for both, enhancement of existing capabilities and learning of new skills. Thus provision of adequate training facilities by the organization to its employees signals its commitment to them. By providing career development opportunities, the organization conveys its willingness and dedication to the personal growth of its employees. The provision of training opportunities is indicative of the importance which the organization attaches to the contributions of its employees and is a token of its recognition for such contributions . In Pakistan most of the times such trainings and other career development opportunities go beyond any formal union contract and is thus viewed by the employees as out-of-will treatment by the organization. Such discretionary treatment on part of the organization is viewed by its employees as indicative of organizational support for them . Previous studies have found evidence that career development opportunities are positively related to perceptions of organizational support and that training predicts POS . Similarly, a significant relationship between career development opportunities and POS is also been reported by Meyer and Smith . Based on the review of past research, I hypothesize that an employees level of POS will be positively related to his/her belief of the training and career development opportunities provided by the organization. H2c: Employees perceptions about training opportunities (Trg) will be positively related to the level of his/her POS. 3.4.4 Result-Oriented Appraisal: Previous researches has documented a positive relationship between result-oriented appraisal and firm performance . These authors reported a correlation of r = .13 at p H2d: Employees perception of result oriented appraisal (ROA) will be positively related to their perceptions of organizational support (POS). 3.4.5 Employment Security: Delery and Doty in their research on banking sector of US have found a positive relationship between employment security and firm performance. The positive relationship was attributed to increased employee commitment and motivation due to secure jobs in banks. Similarly Fey, Bjorkman, and Pavlovskaya argued that provision of long term job security to employees signal organizational commitment to them. Pfeffer asserts that norm of reciprocity bounds employees to reciprocate such commitment in the form to their support to the organization and its goals. On the other hand organizational commitment of employees working for an employer who treats its employees as unimportant or dispensable tends to be low. Further, in times of economic turbulence when people are finding it increasingly difficult to find jobs, long term job security by the organization to the employees enhance their perceptions of organizational support. In light of the existing theoretical and empirical rationale I predic t about the relationship between employment security and perceived organizational support (POS) as following: H2e: There will be a positive relationship between employees perception of employment security (ES) and his/her perceived organizational support (POS). 3.4.6 Participation in Decision Making: Studies have concluded that organizations will yield better results if they gave their employees participation or voice in decision making activities . Providing opportunities to the employees to participate in decision making should indicate that their contribution is being valued by the organization . Researchers, have previously suggested that having say in decision making and voice in formulating organizational policy should be tested as a precursor of perceived organizational support . Whitener argued the fact that it is not only the existence of participation practice which is enough to elicit positive response from the the employees rather it is the perception regarding the existence and usefulness of such participatory mechanism which enhances employees perception of organizational support. Thus, the following relationship between participation and perceived organizational support is predicted: H2f: Employees perception of participation in organizational decision making (Part) will be positively related to his/her perceptions of organizational support (POS). 3.4.7 Compensation Organizational Support Theory argues that organizational rewards signals the nature of employee concern by the organization. Thus, favorable rewards signal that employee contributions are being valued by organization . More specifically this theory holds that favorable organizational rewards are conceived as organizations recognition and appreciation of employees work, and therefore, a major source of POS development . Organizational rewards may take the form of different variables when it comes to measuring its relationship with POS. In literature variables such as pay itself , distributive justice , procedural justice and general organizational rewards are researched for their relationship with POS. A common theme which emerges out of these studies is that POS is positively influenced by organizational rewards. Perceived organizational support is found to be positively related to employee pay satisfaction in a study conducted by Shore and Tetrick . Another study, which tested the relationship between employees perception about procedural justice and their perception of organizational support, found that both are positively related . Similarly, Wayne et al. noted a positive association between perceptions of procedural justice and POS. One can easily note from the above studies that though different indicators have been used to capture the concept of organizational rewards and then test their relationship with perceived organizational support, these researches converge in their conclusion about positive link between reward and development of POS. As the focus of this dissertation on measuring the influence of organizational human resource practices on employee commitment and customer satisfaction, the issues of relationship between rewards like distributive and procedural justice is somewhat out of scope for this study. Of particular importance to this study is the role of compensation as organizational reward, and the role it plays in development of POS. Willis noted that compensation is the most critical issue when it comes to attracting and keeping talent. Compensation is the cornerstone of the majority employment contracts. As Parker and Wright noted that basic reason for such centrality to the issue of compensation is the assumption that money influences behavior. In 1999 a study conducted by Bassi and Van Buren revealed that firms using high-performance work practices provide compensation based on group-performance and company profit sharing to enhance the employees feeling of organizational support. Especially, profit-sharing mechanism is a clear sign that organization does not only recognize and value its employees efforts in its profit but is ready to share it with them. This line of thinking clearly indicates a positive possibility of relationship between employees compensation and their perceptions of organizational support. Thus based on review of existing literature and logic which dictates a relationship between compensation and POS, I hypothesize as under: H2g: Employees perceptions of compensation (Comp) will be positively related to the level of his/her POS. 3.5 Perceived Organizational Support (POS) and Organizational Commitment (OC) During the last two decades the concept of organizational commitment (OC) remained a major focus of research in organizational studies. One of the reasons for such focus is the assumed relationship between organizational commitment and performance . In the following lines I will first explain the concept of commitment and will then explain the logic of proposing relationship between POS and OC. The term commitment has been widely used in research and is being variedly used to explain the antecedents, consequences and process of being committed to organization . This variety of definitions of commitment led Meyer and Allen to note that OC may be a multidimensional concept that has the potential to be interpreted in variety of ways. Nevertheless, the major definitions of OC appear to be affective or attitudinal , normative , behavioral and calculative . However, as Allen and Grisaffe noted, most researchers would agree that organizational commitment refers to a psychological state that characterizes an employees relationship with the organization for which he or she works and that has implications for whether or not the employee will choose to remain with the organization. Researchers differ in their opinion about why or how commitment occurs. Meyer and Allen conceptualizes that commitment develops as a result of experiences of satisfying employees needs motivational and/or compatible with their values . They further argued that desired commitment profile of employees may be developed by managing the employee work experience. Some researchers have described commitment as a strong belief in and acceptance of the organizations goals and values, a willingness to exert considerable effort on behalf of the organization, and a definite desire to maintain organizational membership . This definition highlights the role which commitment plays in enhancing individual performance such that more committed employees are supposed to be exerting more effort in achievement of organizational goals. Another important way of conceptualizing commitment is through individuals attitude towards employer organization. Researchers have noted that virtually all the research conducted on organizational commitment, per se, has used the attitudinal conceptualization. The following description of attitudinal commitment is forwarded by Mowday et al. : Attitudinal commitment focuses on the process by which people come to think about their relationship with the organization. In many ways it can be thought of as a mind set in which individuals consider the extent to which their own values and goals are congruent with those of the organization. Such a description suggests that strongly committed individuals will put in more work required for attainment of desired organizational outcomes as such outcomes are consistent with their personal values and goals. Meyer and Allen noted that organizational commitment is a mind set or psychological state (i.e., feelings and/or beliefs concerning the employees relationship with an organization) They conceptualized commitment through a three component framework. The three components are affective commitment, continuance commitment and normative commitment and has been described by Allen and Meyer as under: . . . employees with strong affective commitment remain with the organization because they

Progeria Essay -- miscellaneous

Progeria Progeria is one of the least known genetic disorders. There are two types of Progeria, the only difference being the age group that it affects. The Hutchinson-Gilford Progeria Syndrome is commonly called Childhood Progeria. The second type of Progeria is Werner’s Syndrome, which is the adult form of Progeria. What basically happens in this disorder is that age is accelerated seven times faster than that of a normal person. For example, for Hutchinson-Gilford Progeria Syndrome, a child could look like he is fifty when he is actually five years old. A twenty year old with Werner’s Syndrome could look similar to a sixty or seventy year old person. There is, even now, not much information known about this genetic disorder because of the scarcity of people with this disorder, not to mention the short life period that they have. The gene for Hutchinson-Gilford Progeria Syndrome was discovered quite recently on April 16, 2003. Researchers confirmed that the gene, HGPS, is not an inherited disorder because neither parent carries or express the mutation. The mutations to the gene LMNA, which encodes for the Lamin-A protein, causes Progeria. The Lamin-A protein is what provides the framework that holds the nucleus together. Researchers believe that an unstable nucleus caused by a faulty Lamin-A protein brings about Progeria. This gene is located in chromosome 1, but the exact locus has not been announced yet. Researchers say that Progeria is point autosomal point mutation. This misspelling among 25,000 base pairs causes the shortage of the protein made by Lamin-A. This is also a dominant mutation because it is expressed equally in girls and boys. As in other dominant gene mutations, there is a â€Å"paternal age effect†, meaning that the mother is, on the average, four or five years younger than the fathe r at the time of conception. The symptoms of a child with the HGPS gene are very noticeable. Although they appear normal at birth, their age begins to accelerate by they time they are 18 to 24 months old. Bones soften and become more fragile, and the even the skin takes the appearance of the very old because it becomes thinner. If the bones break, they usually do not heal properly. Children with Progeria often have a crinkled and beaklike nose, and fat under the skin is nonexistent to them. The muscles becoming flaccid, hips being dislocated, and joints... ...es, Venezuela, and Vietnam. What has also been noticed of those with Progeria, is that the progeriacs are born with abnormally short telomeres, which are caps of the chromosomes. By they time they turn five, these are as long as a very elderly person. Telomeres reach a certain point of division before they began shortening, making the person old. Currently, there are no cures for this genetic disorder. Dr. Francis Collin who is the head of the National Human genome Research Institute said that the â€Å"the next step is to find a drug that corrects the mutated LMNA gene, and it may be possible to correct the gene itself,† as stated by the Washington Post. Furthermore, mutation in a yeast protein that is similar to the human WRN protein called SGS1 causes the yeast to have a shorter lifespan than the yeast cells that are devoid of the mutation. Another fact that was noted was that nucleolus was enlarged and fragmented in the cells with SGS1, which are typical signs of aging in yeast. Yeast could be a helpful model for human aging because it may give the means to be knowledgeable about more about Werner’s Syndrome, Hutchinson-Gilford Progeria Syndrome, and other related diseases.

Is Love A Key Element When Choosing A Marriage Partner? Essay -- essay

A famous quote by John Lennon saying that â€Å"love is the answer and only you know that for sure† was not entirely truthful the fact not realised was that, for the many people in today’s contemporary â€Å"dating† grouping, truly knowing what the answer actually is in regards to dating is often easier said than done. Therefore, the answer certainly is not love. According to the Merriam-Webster Dictionary (1974), love is defined as a â€Å"strong affection, a warm attachment, attraction based on sexual desire, cherish, to feel passion, devotion or tenderness for ~, caress and to take pleasure in ~ â€Å" (p.417). In the modern-day world where the preferences and choices of human mate selection has become a topic of broad exploration, it is highly questionable as to whether or not â€Å"love† is the principal influence that leads an individual’s decision of choosing a life-long partner. The choosing of a marriage partner today seems to be a crucial aspect of life decisions that makes all other choices in one’s life seem to be more or less trivial when comparing accordingly. When you come to a decision as to who you want to marry, share the rest of your life with and become one with, you are changing every aspect of your once single and independent life. For the reason that life changes so significantly when a marriage partner has been chosen, there are countless factors that have an effect on the choices that individuals make. Firstly, Botwin et al. (1997) insist that â€Å"personality plays a critical role in mate selection and marital happiness† (p.128) but many other attributes such as the many dating processes, the many problems that often occur in relationships, and individual preferences all highly motivate, aspire and aim to encourage people in today’s society toward finding their preferred marriage partner. Society often questions the difficulty involved for an average person to simply decide â€Å"who† they desire to marry. What's more is the reality that many people also criticize the individuals who have no idea who they want to marry. Research by Doosje et al. (1999) shows that â€Å"both men and women value most in their partner that she/he is kind and considerate, socially exciting, creative and intellectually stimulating† (p.46) which goes to prove that couples want their marriages to work and do not even consider them to eventually fail. Buying a car or buying a house is a diff... ...enges that young adults face in today’s society but even more importantly, it is the largest challenge that the future of the family life will be facing for years to come. Bibliography Botwin, D., Buss, D., & Shackelford, T. (1997). Personality and Mate Preferences: Five Factors in Mate Selection and Marital Satisfaction. Journal of Personality, 65(1), 107-136. Doosje, B., Rojahn, K., & Fisher, A. (1999). Partner Preferences as a Function of Gender, Age, Political Orientation and Level of Education. Sex Roles, 40 (1/2), 45-163. Nock, S. (1995). Spouse Preferences of Never-Married, Divorced, and Cohabitating Americans. Journal of Divorce and Remarriage, 22(3/4), 91-108. Simpson, J., & Gangestad, S. (1992). Sociosexuality and Romantic Partner Choice. Journal of Personality, 60(1), 31-51. Townsend, J., and Levy, G. (1990). Effects of Potential Partners’ Physical Attractiveness and Socioeconomic Status on Sexuality and Partner Selection. Archives of Sexual Behaviour, 19(2), 149-163. The Merriam-Webster Dictionary. New York: Pocket Books New York, 1974. New International Version Youth Walk Devotional Bible. Michigan: Zondervan Publishing House, 1992.

Key Events in the Civil Rights Movement Essay -- Civil Rights Equality

The Civil Rights Movement started with The Montgomery Bus Boycott. The Boycott officially started on December 1, 1955. Rosa Parks was an Educated women and she attended the laboratory school at Alabama State College. Even with that kind of education she decided to become a seamstress because of the fact that she could not find a job to suit her skills. Rosa Parks was arrested December 1955. Rosa Parks Entered a bus with three other blacks and sat on the fifth row. The fifth row was the first row the black could occupy. After a few stops later the rows in front of them where filled with whites. According to the law at the time blacks and whites could not occupy the same row. There had been one white man left with out a seat. The bus driver had told the four to move so the white man had a place to sit. The other three that was with Rosa Parks had moved. Rosa Parks however did not. She refused and was arrested. E.D. Nixon post bond for Rosa Parks. He told her that with her permission they could break segregation from buses with her case. Jo Ann Robinson made flyers and distributed them with her students. The flyers urged people to stay off the buses on Monday the day Rosa Parks case was due. Martin Luther King, Jr. a minister thought that if they could 60 percent of the blacks to stay off the buses the boycott would be a success. Martin Luther King Jr. thought he saw a miracle when he saw bus after bus pass his house with no blacks in them. That night they had called a meeting him and other ministers and blacks of the community which they called there self (MIA) Montgomery Improvement Association. They elected King the president of the group. They had a decision to make whether or not to continue with boycott or not. Then E.D. Nixon rose to speak: ?What's the matter with you people? Here you have been living off the sweat of these washerwomen all these years and you have never done anything for them. Now you have a chance to pay them back, and you're too damn scared to stand on your feet and be counted! The time has come when you men is going to have to learn to be grown men or scared boys.? The MIA had then decided to let the people vote on whether or not to let the boycott continue or not. They held a mass meeting and it was obvious to see that they decided to continue with the boycott. When the boycott began no one had expected for it to ... ...a return to Montgomery, where the civil rights movement had started ten years earlier with the Montgomery Bus Boycott. A few months later, blacks had reason to rejoice again. It was truly a day for celebration. On August 6, 1965, President Johnson signed the Voting Rights Act into law. By 1969, 61% of voting-age blacks in America were registered to vote, compared to 23% in 1964. The Selma to Montgomery march clearly showed both how far American blacks had come and how far they still had to go. Ten years ago blacks could barley do anything and now they are equally treated how they are suppose to be. During the movement mainly great people died. The sacrifices they made help make America what it is today. The movement was from 1955-1965, those years where some of the hardest years for America. We overcome our differences and now everyone is equal. This report was based on The Civil Rights Movement. Websites http://www.mecca.org/~crights/cyber.html http://www.cr.nps.gov/nr/travel/civilrights/ http://www.infoplease.com/spot/civilrightstimeline1.html Books Voices of Freedom: An Oral History of the Civil Rights Movement The Origins of the Civil Rights Movement

Desegregation Debate

The challenge of desegregating schools was brought upon in 1954 by five separate court cases, ultimately joined together and called Brown v. The Board of Education. Though each case was different, they all revolved around the main argument that segregation itself violated the â€Å"equal protection under the laws† guaranteed by the Fourteenth Amendment, and had detrimental psychological effects on Negroes. Segregation was almost always initiated by whites, and initiated on the basis that blacks were inferior and undesirable. A sense of inferiority affects the motivation of a child to learn. When blacks allowed themselves to accept their status at the separate school, the effect on their personalities was perpetually worse than any problem they might encounter in an integrated school. This element became a prominent part of the legal case against segregation (Stephan 9). The biggest argument against desegregation was the perception that blacks were not as intelligent as whites. Since the Fourteenth Amendment did not guarantee the right to a quality education, if a school chose not to accept them, there was nothing that could be done legally. Long after the â€Å"separate but equal† doctrine became law, it was clear that blacks were indeed separate, but they were not equal. Segregation still had a firm hold in the areas of public education, public transportation, hotels and restaurants, hospitals, housing and departments of the United States Government (Stephan 7). An example was the case of McLaurin v. Oklahoma Board of Regents of Higher Education in 1950. George McLaurin was admitted on a segregated basis to the graduate school of the University of Oklahoma as a result of a federal district court order. He was required to sit in an anteroom outside of his classes and was given separate tables at the library and cafeteria (Stephan 11). The expenditure disparity between white and black children was enormous in some areas of the country. In the South, the average expenditure for white children was $44. 00, but was only $13. 00 for black children. In Georgia, the figures were $35. 00 versus $6. 00 and in Mississippi, $45. 00 versus $5. 00. Considering the national average per pupil expenditure was $99. 0, it was clear that the school system was separate and unequal and blacks were not receiving their fair share (Stephan 8). There was also the cost of integrating schools to legal specifications. To minimize transportation costs and to accommodate distinctions between the suburbs and the inner city, the people who were supposed to pay those costs were those who lived near the ghetto inside the inner city limits. Even though the cost was no more than segregation had imposed on middle-class black people, the whites argued that they now had to pay more money in taxes to solve a problem that wasn't their fault. Black children were more likely to attend an inner city school and they felt that in return for their taxes they would receive an increase in crime and a lower standard of education (Stephan 175). Another major argument regarding desegregation was the fact that there was de jure (by law) segregation in the south and de facto (by geography) segregation in the north, with the differentiating factor being â€Å"purpose or intent to segregate. † (Stephan 91) Every standing court order related to school desegregation was based on the discoveries of de jure segregation, either in the north or south. In each case, the courts found that local school districts and occasionally state educational agencies as well, had systematically carried out policies leading to or reinforcing segregation (Stephan 122). One of the disadvantages of desegregation, however, was the way it destroyed the ethnicity of blacks. While they were segregated, it was easy for them to maintain their African-American background. Once they became part of an integrated school system, they were forced to conform to white society's views on dress code, religion and behavior. The busing issue was considered to be â€Å"an educational disaster. † Whereas previously, black children had been bused long distances to segregated schools, now they were busing white children to integrated schools. It didn't help the minority children and it hurt the middle-class children, creating conflicts where they weren't any before. The white middle-class families who felt violated by having blacks being bused into their schools and neighborhoods fostered hostilities. When rioting broke out, it became so serious that the police and National Guard were called in to protect the black students. In addition, it increased educational costs with the addition of new buses and the salaries of the drivers, and jeopardized the health and safety of children (Stephan 123). According to the government, the purpose of desegregation was to integrate the population with the expectation that racially, economically and socially disadvantaged children would benefit and therefore enhance their abilities of obtaining the knowledge needed to acquire higher status and better jobs. With all of the factors contributing to the problems of desegregation, it is obvious that the blacks were caught in a no-win situation. They were already considered to be mentally inferior to whites due to the white perception of them during the times of slavery. Now they were attempting to increase their intelligence level, but their inferiority was causing them to be excluded from the same education that whites were receiving. Once they were finally granted rights into the schools, the stress they were experiencing caused even more psychological problems and learning disabilities. During this time, it was forgotten that the major function of schools was and always will be to educate, and that should never be based on race, religion or color.