We Have No Class (Middle Class) Essay Example for Free

We Have No Class (Middle Class) Essay In Paul Krugman’s Confronting Inequality, we are told, as citizens of the United States, the damages of high and rising inequality within our country. Krugman describes America as a place of unclear economic progress for the middle class while the share of economic growth in the past 3 decades has gone to the wealthy 1%. Krugman next describes the impact such inequality has on our society and republic. First starting with social inequality, he states â€Å"The fact is the vast income inequality inevitably brings vast social inequality inevitably brings vast social inequality in its train† (589). What Krugman is trying to convey is that as the gap between classes grows, it brings with it greater and greater inequality. Within this social system, the author tells us of how desirable school districts are decreasing in number and are becoming much more expensive to live in, making it so that children with low-income parents get a â€Å"bad start† in their education. Krugman also states that corrupt politics are a direct result of the difference between the 1% and rest of the country. Using that point as fuel he argues for the removal of tax cuts for the wealthy. Krugman shows us that the Urban-Brookings Joint Tax Policy Center estimated that if Bush tax breaks expired in 2010 for those who have an income of over $200,000 then the money gained from taxes could fund a universal healthcare system for the entire nation. Krugman’s main solution was to generally close obvious loopholes within the American system. The next problem, Market Inequality, is also brought to inquisition. Krugman says that a raise in minimum wage as well as a steady union movement would assist the wage inequality. Finally, Krugman discusses how accessible these changes are and how rapidly they can happen. He feels as though the changes can be easily reached, but not likely. Richard Wilkinson, a social researcher, discussed in his 2011 â€Å"TED talk† the correlation seen between social issues and the distance in between economic classes. A logical connection can be made to Krugman’s paper on the same topic; however beyond the obvious similarity of a s imilar topic, they seem to agree that America is in sore shape. With Wilkinson’s emphasis on a lack of social mobility he asks if the most important thing for a child is their father’s income. â€Å"Do rich fathers have rich sons and poor fathers have poor sons, or is there no relationship between the two?

Impact of Corruption on Nigerias Unemployment Rates

Impact of Corruption on Nigerias Unemployment Rates Introduction Unemployment has eaten so deep into the Nigerian society to the extent that the citizens have learnt to live with it, with a view that nothing can be done about it. This attitude of Nigerians towards this menace of unemployment however is a negative approach of dealing with such complex and complicated issue that has had tremendous negative impact on the country, some of which are robbery, kidnapping, rapes, oil bunkering etc. According to the Manpower Board and the Federal Bureau of Statistics, the Nigerian youth population is 80 million and this represents 60% of the entire population (Awogbenele and Iwuamadi, 2001). It further explains that 64 million of them are unemployed, while 1.6 million are under-employed. It is very unfortunate that such ugly report of unemployment could be heard of a country like Nigeria with so much natural and mineral resources. According to the statistical rebasing exercise of 2014, Nigeria has assumed the position of the largest growing economy in Afri ca, with an estimated GDP of 502 billion USD (CIA). Such economy ordinarily would have increased the number of industries and attracted foreign investors to the country, thereby increasing the employment rate in the country, but the presence of corrupt practices in the country have been an impediment to the increasing rate of employment in the country despite its enormous resources. According to Transparency International (TI) corruption perspective index of 20013, Nigeria ranked 144 of 177 countries. The high unemployment rate in Nigeria has been attributed to corruption. In a bid to combat corruption in Nigeria, president Olusegun Obasanjo established the Economic and Financial Crime Commission (EFCC) and the Independent Corrupt Practice Commission (ICPC) in 1999 to act as a watchdog for public officials and check corrupt practices, but these commissions have also been plagued by nepotism and the recruitments of mediocre or candidates that are unqualified in preference to qualified candidates. Other measures towards combating corruption have failed as the process also involves corrupt public officials, more like fighting an evil with the same evil. Corruption in Nigeria has become an issue of global discourse and has attracted comments from several scholars; however, this paper seeks to expose the corrupt practices in the country, in a pursuit for a change in the employment status of the country. In achieving this, this paper draw a nexus between corruption and unemployment, going forward to identify and analyse corrupt practices in the country and h ow it has impacted the unemployment rate in the country, thereafter, proffer solutions to the problems of unemployment in Nigeria by suggesting some mechanisms that will help to curb the evil of corruption that is prevalent in Nigeria. Research Question As can be seen from the introduction, the Nigerian situation of high rate of unemployment is unique because ordinarily this should not be the case with Nigeria because of her oil wealth. However, this paper suggests some research questions that if answered adequately will solve the puzzle in our minds and provide a cure to this illness of unemployment in Nigeria. My research questions include: Is there a relationship between corruption and unemployment? How has corruption impacted on the unemployment rate in Nigeria? JUSTIFICATION: It is not a misconception to suggest a high level of employment and an increasing industrial society in a state that is endowed with huge natural and mineral resources. The Nigerian situation is an exception in the sense that despite her abundant resources, the citizens still suffer high rate of unemployment. The increasing rate of unemployment in the country has been attributed to presence of corrupt public officials in the political, economic and social affairs of the nation. The corrupt practices of such corrupt officials which include nepotism, money laundering, mismanagement of public fund, bribery, fraud have increased the unemployment rate in the country. The uniqueness of the Nigerian situation triggered my interest in this paper, with the aim of finding the nexus between corruption and unemployment and thereafter explain how corrupt has impacted (negatively) on the unemployment rate in Nigeria. In answering the above listed research question, I will attempt to analyse the corrupt practices among public officials in Nigeria and evaluate its impact (of these practice) on the unemployment rate in the country. This paper will go a step further to proffer possible mechanism that could curb the menace of corruption, thereby reducing the unemployment rate in the country by adequately utilizing their God’s given resources for the good of the citizens. LITERATURE REVIEW/THEORITICAL FRAMEWORK The variables included in this paper are corruption and unemployment. Corruption is the independent variable that determines the unemployment rate (dependent variable) in the country. Increases in corruption will most likely lead to an increase in the unemployment rate in a country and a decrease in corruption will also mean a decrease in the unemployment rate in the country. However, an increase in the unemployment rate in a country could also cause an increase in corruption because there a high possibility of an unemployed population to indulge more in corrupt practices as a means of livelihood, therefore the dependent variable could also cause the independent variable. I will say however that there is a correlation between both variables because the high rate of unemployment in Nigeria is caused by the increase in corruption in the country. There is also a cofounding variable Z that makes the relationship between both variables spurious because there are states that are corrupt an d yet witness low unemployment rate and there are also states that have reduced rate of corruption and still experience high rate of unemployment. This existence of these states with exceptions shows a spurious relationship between corruption and unemployment. Definition of Concepts The term corruption has been defined conceptually and operationally by different scholars and institutions. Corruption as defined by Transparency International (TI) is â€Å"the misuse of entrusted power for private gains†. Corruption is a menace that occurs not only in developing countries, but also in the first world countries, however, it is prevalent in developing countries of Asia and Africa. Corruption is not limited to a particular political system, but as a regular phenomenon, it exists in all forms of political system. Closely related to the definition of corruption by Transparency International, the World Bank definition of corruption goes thus â€Å"the misuse of public office for private gain†. According to Brooks, corruption is intentional because public officials are aware of their duties, but they neglect it for reasons that are not intended by the state (Brook 1970). Corruption is referred to as â€Å"mother of all crime† and is included in four f orms which include bribery, graft, nepotism and prebendalism (Akinseye 2000). Conclusively, I see corruption as an illegal extra benefit that is sought by public officials at the detriment of public. I call it â€Å"illegal extra benefit† because they not legally entitled to it. Unemployment however, can be described as the condition of persons who are willing and able to work, but are not able to find job. When the supply of labour is more that the demand for labour, this could cause unemployment and joblessness as a result of lack of employment, youths may be forced to indulge in illegal means of livelihood and this may result in unemployment (Echebiri 2005; Onah 2001). The various forms of unemployment include frictional, structural, seasonal and cyclical employment. According to a report by the International Labour Organisation, the global rate of unemployment is increasing steadily and the number of people without job has increased to above 195million, which is 6.3% in the world (ILO 2007). An increasing per cent of this figure are found in the developing countries of Asia and Africa. According to Todaro, the increasing rate of unemployment is geared by the transfer of movement and economic activities from rural to urban areas (Todaro 1992). The unemplo yed is defined by the International Labour Organisation as the amount of a population who are economically active and are without job, but are willing and are seeking jobs including those that have voluntarily dropped their work and those that have lost their jobs. (World Bank 1998:63). Unemployment in Nigeria however can be divided into two: those that have lost their jobs and those that have not ever been employed. In this paper, I subscribe to the Huntington theory of modernisation that focuses on the process of change and the reaction of states to such changes. This however forms my theoretical base for the purpose of explaining the problem of corruption of which unemployment is a product. The modernisation theory also implies a transformational process from a traditional society to a modern society through the introduction of modern practices. According to Adefulu, modernisation theory is one of the theories of corruption. He argued that political stability, inequality and corruption were breaded by the political and economic process of state modernization (Adefulu, 2007). The transformation from traditional states to modern societies left some loop holes for corrupt practices. This has further increased the unemployment rate in Nigeria. In the society before modernisation, public officials were not as corrupt as in our contemporary days. Companies like the African Timber and Plywood, Sapele , Nigeria, the Delta Steel Company, Delta state, Nigeria and several other big industries and companies in Nigeria that employed thousands of Nigerians were functional and active until this modernisation process started, where Nigeria started modernisation practices as opposed to the previous state system where top leaders and rulers owe allegiance to the traditional institution. The consequence of corrupt practices in public offices in the traditional institution was death and the fear of this consequences reduced corruption to the barest minimum. Public officials then were accountable and responsible in their operations and the society experienced a very low rate of unemployment because of the reduced rate of corruption. The transfer to a modern state system has increased the corruption rate, thereby increasing the rate of unemployment in the country. HYPOTHESES. Given the above mentioned theoretical framework, my hypothesis in this work is. There is a correlation between corruption and unemployment. Corruption has impacted negatively on the unemployment rate in Nigeria. DATA AND METHODOLOGY My research data (collection of information) will include both primary and secondary sources. Primary Sources: Data that will be collected from primary source will include personal interview. Secondary Sources: Secondary sources for my research will include Transparency International Corruption Index (TI), CIA World Fact book, World Bank data etc. these sources have provided adequate, accurate and reliable information that have been of help to researchers, hence I consider them worthy of reference. Academic journals and articles will also be consulted in the course of my work. This paper will rely on observational study and will involve a small-n design by focusing on just Nigeria as my case study because the paper seeks to examine not only a relationship between corruption and unemployment, but also to identify how corruption has been able to cause a high rate of unemployment in Nigeria and possible solutions to this problem of unemployment in the country. REFERENCES Akinseye George, Y: Legal System, Corruption and Governance in Nigeria, Lagos. (2000) Adefulu A. Razaa: Neo Patrimonialism the modern Africans state and corruptions syndrome. (2007) Awogbenle, A.C. Iwuamadi, K.C: Youth Unemployment: Entrepreneurship Development Programme as an Intervention Mechanism. . (2010) Central Intelligence Agency: The World Fact Book (2014) Echebiri, R.N: Characteristics and Determinants of Urban Youth Unemployment in Umuahia, Nigeria: (2005) International Labor Organization: Youth: Pathway to Decent Work (2005). Todaro, M: England: Longman Group, U.K. Limited; Economics for a Developing World, (1992) Transparency International Corruption Perspective Index (2013) World Bank: World Development Indicators. Washington, D.C. (1998)

Materialism in The Great Gatsby Essay -- Great Gatsby Essays

Materialism may be defined as attention to or emphasis on material objects, needs or considerations, with a disinterest in or rejection of spiritual values. The acquisition of material wealth is often equated with happiness in this country. This is true today, and it was true during the 1920's, the setting of F. Scott Fitzgerald's The Great Gatsby. That the majority of Americans believe that wealth and happiness are the same is a result of our market economy that encourages consumption and conditions us to think that we need material possessions to be happy. According to Andrew Bard Schmookler, "Wealth and human fulfillment have become equated in the predominant ideology of liberal society, even though the great spiritual teachers of humanity have all taught otherwise." (17)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   What happened to Gatsby's generation? The 20's were an age of a consumption ethic that was needed to provide markets for the new commodities that streamed from the production lines (Cowley, 53). The same problem exists today ... our materialistic attitudes are a result of the free market economy in this country. Consumers are taught that they need to have all these things that the businesses are trying to sell.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   It's true that this desire for things is what drives our economy. The free market has given us great blessings, but it has in some ways also put us on the wrong path -- the path to a selfish, unhappy society. Michael Lerner, who worked as a psychotherapist to middle-income Americans notes that    "The problem is that the deprivation of meaning is a social problem, rooted in part in the dynamics of the competitive marketplace, in part in the materialism and selfishness that receive social sanction.... ...sterlin, Richard A. "Does Economic Growth Improve the Human Lot?". Nations and Households in Economic Growth:   Essays in Honor of Moses Abramovitz. Eds. Paul A. David and Melvin W. Reder. New York: Academic Press, Inc. 1974 (89-125) Fitzgerald, F. Scott. The Great Gatsby. New York: Charles Scribner's Sons, 1925. Kasser, Tim, and Richard M. Ryan. "A Dark Side of the American Dream: Correlates of Financial Success as a Central Life Aspiration. " Journal of Personality and Social Psychology 65.2 (1993): 410-13. Lerner, Michael. "Gurus of Cynicism vs. the Politics of Meaning." Houston Chronicle 24 June 1993, 2 star ed.: B11. Montagu, Ashley. Touching.   2nd ed. New York: Harper & Row, 1978. Schmookler, Andrew Bard. "The Insatiable Society: Materialistic Values and Human Needs." The Futurist July 1991: 17-23. J:ofsengclarklcarolyns.doc   

Danforth?s Witch Hunt, Is It J Essay -- essays research papers

Danforth’s Witch Hunt, Is it Justified? (An Essay on the Crucible) I write in response to your column regarding Judge Danforth’s actions during the witch trials in Salem. Surprisingly, you praised Judge Danforth for his â€Å"impartiality and tact† during this tragic set of trials. You could not be farther from the truth. Judge Danforth abused his judicial power, throughout the trials, to the fullest of his abilities. His abuses range from berating and coercing witness into saying what he wants them go, to blatantly ignoring testimony that refuted the accusers. He presides over his courtroom as if he has divine right. Judges are supposed to find truth, not invent it. When Mary Warren confessed to Danforth that she, along with the other accusers were sporting, he refused to believe her. To think. that he would obviously ignore her is just beyond my comprehension. he did this simply to save face. To listen to Mary and admit the court system had been wrong was not a choice. Because of this and many other miscalculations on Danforth’s part numerous people lost their lives.   Ã‚  Ã‚  Ã‚  Ã‚  In addition to this, Judge Danforth has chose, very biasedly, what to admit as evidence. He used that power whenever he sought fit. When Giles Corey lacks the evidence to prove that Thomas Putnam hath prompted his daughter to falsely cry witchery on George Jacobs, Danforth dismisses the claim. Why you say? The lack of tangible evidence, yet when the young harlots claimed that invisibl...

Essay --

1. There is a very homoerotic/masculine feel from the opening scene of Rambo III. We are introduced to a ripped and glistening character that looks like he has been bathing in baby oil/tanning oil for the past 48 hours. There is nothing that seems to hurt Rambo as he takes every blow delivered to him in the opening scene. He is also willing to kill countless amounts of Russians in order to save the American general. The game that Rambo learns to play? It is only a physical game played with goat carcass. Rambo is made out to be un-stoppable and even God-like. When Trautman reveals that Rambo is coming to resue him, Zaysen asks Trautman who he thinks Rambo is†¦God? Trautman replies, â€Å"No, God would have mercy†¦he won’t.† Rambo would rather die than not fight for what he believes in. Even at the end, when all seems lost, he refuses to go down without a fight. His determination to fight is the greatest testament to his masculine identity. The Afghanis respec t this and in this sense, Rambo almost becomes a martyr to them. By the end, it almost seems like they aren’t fighting for themselves, but for Rambo! In relation to Jeffords, the â€Å"hard-body† physique is clearly present with Stallone’s character as are the narratives of heroism, toughness, strength, etc†¦ in the film which helps to clearly demonstrate the mastery over foreign enemies. 2. Orientalism is the way that the Middle East is depicted by its’ friendly acquaintances over in the West. In other terms, it is a â€Å"racist discourse which constructs the orient for Western aggrandizement.† The way that the Afghans are depicted in the film alongside Rambo makes the audience sympathize with them. The little boy also looks up to Rambo. He looks up to him a masculine father-figure. Using th... ...ew what we know now. If only they knew about how 9/11 and the actions the Bush administration took because of it. Furthermore, I wouldn't be surprised if the same question asked of Rambo â€Å"Where’s the honor here?† is asked today by Afghans/Pakistanis wondering where the â€Å"honor† is in unmanned drones? It was hard to figure out who to root for in the film†¦especially with historical bias†¦because the Taliban and entire nation of Afghanistan are made out to be heroes in the film. Back then, it may have been acceptable to insinuate that anyone fighting Russia was practically Christ. They are even referred to as â€Å"freedom fighters† in the film (President Reagan would use this term as well). Today though, we have to watch this film while knowing about the death and destruction caused by terrorists on September 11. Back then, our present â€Å"enemies† were our former â€Å"comrades.†

Abc Apparel Case

ABC Apparel Case | | | | |Questions | | | | | | | |1 |What are the respective amounts and percentages of Materials, Labor, Overhead and Other in total COGS for ABC? | |* Illustrate on an Excel pie chart showing amounts and percentages for each slice. | | | | |[pic] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |2 |What percentage of total COGS is represented by what Mr. Price called â€Å"full package† (purchased finished goods)? | | | | | |â€Å"Finished Garments† represent $647 Million. This assumes the purchased finished goods are supplied freight and duty paid; otherwise, applicable freight and duty| | |costs would have to be added.Note that not all freight and duty can be added to this category, since freight and duty must also support the owned supply chain | | |operations. | | |$647 / $2528 = 25. 6% | | | | |3 |Where do you see the largest opportunities for cost reduction? List your Top 3, with strategies to pursue each one. | | |* Explain your selections. | | |Purchas e price or cost of supply (TCO) reductions in purchased finished goods. At 38% of COGS, these represent the largest single opportunity for cost | | |management / reduction. | |Material price reductions (30% of COGS) through supply chain procurement practices. | | |Other Costs. Freight and Duty represent almost 10% of COGS, which is probably ripe for improvement. Evaluate reducing carriers from 4-5 to fewer. | | |Labor – At 20%, Labor is a substantial percentage of cost but has probably already given up the â€Å"low hanging cost fruit† in the relocation to offshore | | |geography, and would probably be difficult to further reduce. | | | | |4 |Which functional areas would you prioritize in your cost reduction efforts? Why? | | | | |Following the same priorities in Question 3: | | |Purchase price or cost of supply (TCO) reductions in purchased finished goods. Apply supply chain procurement practices such as negotiated price reductions, | | |reverse auctions, global sour cing, target costing, centralizing procurement, spend analysis or supplier rationalization. | | |Material price reductions. Apply supply chain procurement practices such as negotiated price reductions, reverse auctions, global sourcing, target costing, | | |centralizing procurement, spend analysis or supplier rationalization. | | |Other Costs Reduction.Freight and Duty represent almost 10% of COGS, which is probably ripe for improvement. | | |Labor Cost Reduction. At 20%, Labor is a substantial percentage of cost but has probably already given up the â€Å"low hanging cost fruit† in the relocation to | | |offshore geography, and would probably be difficult to further reduce. | | | | |5 |Which internal manufacturing processes would you prioritize for improvement? Why? | | |Evaluate moving the textile manufacturing processes (yarn through Fabric Finishing) from US to offshore, preferably close to the cutting operations.If the key | | |materials could be sourced in-region, this would eliminate the cost, risk and lead time of shipping these products from the US to Central America / Caribbean, | | |reducing the high freight costs. | | |Evaluate Supplier Relationship Management programs with Asia garment suppliers. Objective would be to fully identify and reduce â€Å"hidden† costs of supply from | | |this region through collaborative problem-solving and joint incentives (â€Å"gainsharing†) for improved performance. | | |Pursue lead time reductions and reduced lead time variability through improved logistics practices. Seek use of technologies to identify logistics wait times | | |and unplanned delays.Consider use of a 3PL to become accountable for coordinating all Western Hemisphere logistics, negotiating with the major carriers to | | |reduce costs, pre-clearing all shipments through customs, etc. | | | | |6 |What is the ratio of internal manufacturing cost to purchased garment cost? | | | | | |Ratio, internal to external costs | | |275% | | | | | Internal $1,881 | | |External | | |$647 | | | | | | | | | | | | | |7 |Assuming a SG&A rate of 24% and a gross margin of 35%, what annual revenue would you estimate for ABC? Show your calculations. | | | | | |[pic] | | | | |8 |What is ABC's net profit margin, in dollars and percent? | | | | |11% | | |$428 | | | | | | | | | | | | | |9 |What is ABC's â€Å"profit leverage effect† of reducing purchased item costs? How much additional revenue would be required to equal a 5% reduction in purchased | | |prices paid? | [pic] | | | | | | | | | | | | | †¢ 5% of 1404 = $70 Million. So, reducing purchased costs by 5% reduces COGS and increases profit by $70M. †¢ To yield an equivalent increase through sales, sales must increase by ($70/. 35) = $200 Million (6%).

Lee Kum Kee

Mr.. Lee Shih Nan carries on the work of improving production procedure, while Mr.. Lee Shih Tang was responsible for sales and marketing. However, because of the disagreement in business, Lee Shih Nan buying out of Lee Shih Tang with the help of Lee Wanda, the son of Lee Shih Nan. During this period, Lee Gum Eke expanded its operation and develop import and export business to meet the increasing demands of its overseas market. And then, in 1972, Mr.. Lee Wanda was appointed Chairmen of the company.New business policies and expansion strategies were introduced, setting the direction of the company for the future. Mr.. Lee set â€Å"promoting Chinese cuisine worldwide† as the corporate vision and infuses â€Å"Is Lie Xi Rene†, which means considering others' interests, into the company. However, Lee Gum Eke faced a big problem in 1986 for the reason that Lee Wend's brother Lee Went wanted to liquidate his own share. Lee Gum Eke faced a split once again. The conflict esca lated as the time passed by, even resorting to law. Lee Gum Eke was ordered by court to suspend business for half a year.At the same time, The 4th generation of Lee family, Eddy, David, Charlie, Sammy and Elizabeth graduated from abroad and joined Lee Gum Eke in the ass. The scope and scale of Lee Gum Eke has been developed rapidly. In 1 992, Lee Gum Eke collaborated with the First Ministry Medical University and established the Infant Lee Gum Eke Health Products Co. ,Ltd. To promote traditional Chinese herbal health products. In the same time, apart from the mission of â€Å"promoting Chinese cuisine worldwide, Lee Gum Eke purr forward the mission that â€Å"modernizing traditional Chinese herbal health around the world†.Armed with a unique management culture, stringent quality control, superb and innovative products, coupled with the century-long brand reputation, Lee Gum Eke has achieved unanimous recognition and won numerous prestigious awards. . Family asset 2. 1 Value based leadership(culture value, family value), 2. 1. 1 core value From 1972-1992, after the third generation Lie Wanda took charge of the company, Lee Gum Eke substantiates its core value of â€Å"considering others' interests† in every aspect of its business operations. It was built upon the principles of â€Å"pragmatism, integrity and constant entrepreneurship†.Besides its core value and principles, the company also put forward two missions -â€Å"promoting Chinese cuisine worldwide† and â€Å"modernizing traditional Chinese herbal health around the world†. This value reflects the corporate social accessibility . When pursuing the interests of their own, enterprises should also consider others interest, and then benefit the society. It conforms the long-term management goal of company. 2. 1. 2 Family First Lee Gum Eke always put family in the most important position, making business as a part of family.Lie Wanda thought that family harmony is the found ation of prosperity, which reflects the traditional Chinese culture harmonious family can lead to the success of everything. 2. 1. 3 Establish family committee Lee Gum Eke Group established committee on the family, including a total of 6 people. The core members are Lie Wanda, his wife and his five children. Lie Wanda and his five children are held key position in Lee Gum Eke. The family committee is the highest authority overseeing Lee Gum See's operation.The core function of family committee is the study how to governance family, including to resolve family conflicts, construct family system, nurture the next generation and so on. The family committee do not need to discuss the enterprise management problem. A major decision should agreed by 75% Of total number and the general decision should be agreed by 50% As we can see from the graph, the score of value of Lee Gum Eke is higher than the score of most other companies in SEA and Mainland China. To explain this Phenomenon, I will list the following four reasons. . Irritate(means longevity), 2. 2. 1 History and Reputation Established in 1 888, Lee Gum Eke has become a household name as an ethnic Chinese enterprise as well as an international brand and a symbol of quality and trust. With a glorious history of 1 25 years, Lee Gum Eke has become a household name as an ethnic Chinese enterprise of quality and trust. Armed with a unique management culture, stringent quality control, upper and innovative products, and its century-long reputation, Lee Gum Eke has achieved recognition and won numerous prestigious awards. . 2. 2 Activity participate in promotional activities. In recent years, Lee Gum Eke family members frequently take part in the speech and interview activities to promote the company. Apart from that, many experts have published books intending to study on the cause of success in Lee Gum Eke family. Lee Huh Seen, one of the fourth generation member of Lee Gum Eke, published two books, which is Ã¢â‚¬Ë œthe power of considering other first† and † automatic wave model of leadership†.Automatic eave model of leadership is a kind of management mode of south Lee Gum Eke, the subsidiary company of Lee Gum Eke, aiming to continue operating cool, release unlimited potential, attract talent, consists of selection of talent, high letter atmosphere, highly efficient team. Publishing books has a very positive effect to promote the culture of company to public. As we can see from the graph, the score of heritage of Lee Gum Eke is higher explain this Phenomenon, I will list the following three reasons. 2. Connection 2. 3. Title in government department Lie Hussein: member of the CAP National Committee;Member of the Standing Committee of the Chinese people's Political Consultative Conference Committee of Loaning Province;Director of the overseas Chinese united friendship conference; Lie Hugging: Vice President Chinese Cuisine Association; Director of Chinese Institute of food s cience and technology; Director of Hong Kong Chinese manufacturers association. These titles are very special political resources for enterprise. 2. 3. 2 Close cooperation with well-known universities and government department.Besides owning a lot of titles for family members, Lee Gum Eke has also collaborated with the First Military Medical University, Hong Kong University of Science &Technology, Distinguish University and other well-known colleges as well as some government departments. This is a very good resource for company's development. 3. Roadblocks 3. 1 Family roadblocks:Possible family conflicts At present, the fourth generation successor has not yet been determined. The four sons of Lee Wanda were hold important positions in the group.Although Lee Gum Eke Group set up a family committee which is a good communication platform between family members, it cannot guarantee that after Lie Wend's death, the fourth generation won't appear the operation, because the separation app eared in the second and third generation. 3. Institutional roadblocks 3. 2. 1 Hinder by government policy Chinese government banned direct selling activities in any form in April, 1998, asking the company that has obtained authorized direct selling power like South Lee Gum Eke stop business.It has caused a great impact on profit in the market of mainland china. 3. 2. 2 More concern on food safety problem There are more and more different kinds of food safety problems appear in China in recent years. Therefore, people especially from mainland china could ay more attention in food safety problem. However, more and more companies in sauce industry received complaints from public, which disclose that there are some unqualified products circulate in market. Those companies include Haitian Group, Lee Gum Eke Group, Wang choosy Group and so on.Therefore, food companies like Lee Gum Eke should invest more money to ensure the quality of product, which will increase the cost of company. 3. Ma rket roadblocks 3. 3. 1 Fierce competition and high operational cost Lee Gum Eke has been facing fierce competition from asses to the beginning of 21st century. With the advent of some famous sauce companies like Haitian Group, the market share of Lee Gum Eke in mainland china is losing constantly. Although the market share of Lee Gum Eke in Hong Kong and America performs good, it will still hinder the development of the enterprise for the low market share in mainland china.With the intense competition, the operational cost is increasing constantly, which is another problem Lee Gum Eke should avoid. 3. 3. 2 Disputation on workers There are some labors dispute the low-level salary. To lower the cost of company and make the product more competitive, Lee Gum Eke did not increase labors salary in these years, making employee have different opinions toward the company. Because Lee Gum see's core market still has a lot of growth opportunities and the firm is pay more attention in innovati on recently, continue to expand their market overseas.Therefore, the market roadblocks is not a big problem. 4. Reactions to roadblocks 4. 1 Reactions to Market roadblocks 4. 1. 1 launched a â€Å"happy index† For the dispute from some labors, Lee Gum Eke launched a â€Å"happy index† to measure the degree of satisfaction of workers. The survey showed that Lee Gum Eke won the honor of best employer in Asian area and Mainland China. . 1. 2 Constant entrepreneurship For the fierce competition and increasing operational cost, Lee Gum Eke put forward the target â€Å"constant entrepreneurship†, which means constantly innovation.Innovate in product packaging, in market, in management method and product producing procedure. It offers over 220 varieties of sauces and condiments in over 1 00 countries and regions across the five continents nowadays after setting the target â€Å"constant entrepreneurship†. Len addition to the Lee Gum Eke Sauce Group, Lee Gum Eke Health Product Group Infinitum (China) Company Limited develops the market of Chinese rebel health products. Not satisfied with the sauce field, Lee Gum Eke expand their business to the health product field, which is also a kind of innovation.Nearly 20 years since the establishment , the South Lee Gum Eke successfully produced nearly 50 kinds of product including infinitum health food. Since the twenty-first Century, Lee Gum Eke showed a strong momentum. 4. 2 Reactions to Family roadblocks 4. 21 Established family committee and constitution enterprise management problem. A major decision should agreed by 75% of Apart from establishing family committee, Lee Gum Eke also developed he family constitution. All family members must follow the family constitution, otherwise will not be able to get its due share. 4. 2. Caring for the Community Lee Kurd Eke deliver consciousness Of caring for the community, because to measure the success of a enterprise, the most important factor is how many contributions the enterprise make to the society. For example, the founder Wang Young-aching of company Formosa Plastic Group, contributes a lot to society, by establishing the charitable foundation Change Gung Memorial Hospital and the charitable trust Change Gung. All of his son and all the hillier were deeply moved by their father, leading them work together continue to be of value to their family company.After setting the target of caring for the community, Lee Gum Eke has obtained great achievement in following part. Caring for the Community: In 2008 and 2009, the senior management and employees of Lee Gum Eke participated in the â€Å"Charity Walk to Support Look Chi Association,† the â€Å"Lifeline Express Hong Kong Foundation – Charity Run/ Walk 2009† and various activities to raise money for victims of the Is Chuan earthquake. Caring for the Employees: Lee Gum Eke promotes a â€Å"3-balance† corporate hilltop's – family, health and work; and provides free nutritious lunch and a shuttle for employees.Caring for the Environment: Lee Gum Eke implemented environmental management facilities within its plants – an integrated oil and grease removal process to the sewage treatment system; reduction of plastic usage in packaging; and deploying circulating hot water system to generate energy. 4. 3 Reactions to institutional roadblocks: In line with the spirit of â€Å"Is Lie Xi Rene which means considering others interest, Lee Gum Eke resolutely bought out of the First Military MedicalSeniority and let the First Military Medical University continue to provide scientific research for the South Lee Gum Eke without participate in any management and investment. At the same time, the South Lee Gum Eke provided a sum of money to the First Military Medical University from sales in proportion. The problem has been well settled with guidance of â€Å"Is Lie Xi Rene†. For the complaints from public, Lee Gum Eke attaches great importance to quality of product. From 2004, Lee Gum Eke has taken a series of reform measures to improve product quality and improve customer satisfaction.Lee Gum Eke conduct questionnaire survey every half a year, set up R & D center and invest huge funds to establish integrated supply chain. These strategies have ensured product quality and have improved the competitiveness Of enterprises. The results show that 2004-2007 years customer complaint rate remains below 0. 006%. 5. Recommendations for other family enterprise 5. 1 Consciously penetrate the enterprise culture to brand shaping 5. 2 Cultivate the spirit of forever the entrepreneurial and continuous improvement 5. Implement people-oriented management culture 5. 4 Starting from basic and Striving to consolidate the basis of a hundred ears enterprise Family sustainability score 6. Conclusion â€Å"Lee Gum Eke† is not just an isolated brand, but a true to life, ups and downs of the family business 100 years of str uggle history. Let's not easy for any business concern to survive and remain strong for over a century. It is even more inconceivable for Lee Gum Eke, which began as a humble family operation, to grow into the renowned family enterprise that it is over a period Of 125 years.By studying Lee Gum Eke, I have learned a lot for the enterprise's core value â€Å"considering others interest first' , the target â€Å"constant entrepreneurship† and customer focused approach in developing business. By introducing family business map, we naturally come to the conclusion that Lee Gum Eke will continue put the family ownership and family management strategy in the foreseeable future. 6. 1 family ownership Concentrated ownership enables the controlling owner to effectively control the firm and to be held responsible for his decisions (Lucian, 1965; Jensen and Neckline, 1976).However, diffused ownership has benefits too. Selling ownership shares to investors facilitates financing and firm growth (Demesne, 1967). As we can see from the chart. The company Lee Gum Eke has a very high score of family value. Therefore, concentrated ownership can enable family members make their decision effectively. 6. 2 family management In principle, firm decision rights should be given to the person who maximizes the productivity of firm assets (Grossman and Hart, 1986; Jensen and Neckline, 1992).Founding family members have specialized abilities to preserve and share these intangibles because of life-long interactions and family governance mechanisms that are not available to non-family members. We call these specialized intangibles family assets. From the chart we can see that the roadblock of Lee Gum Eke is lower than most of companies located in SEA and Mainland China. Therefore, choosing family management can maximize the profit of company because of the intangible family assets can show to others.