Youth Crime Juvenile Delinquency

Theories Explaining Youth Crime

Youth crime equally known as juvenile delinquency is the participation in criminal activities by minors who have not attained the age of majority. Consequently, such behavior remains informed by various factors some of which can be alluded to as the cause of criminal actions (Goldson & Muncie, 2015). Common youth crimes include, for instance, underage drinking and smoking which are primary status offenses, violent crimes for instance robbery with violence and property crimes like burglary or theft. Despite the propensity of such crimes, little is known as to why young people turn to criminal tendencies. Subsequently, numerous theories have been postulated to explain the causes and core reasons as to why young people engage in youth crime. Thus, this essay endeavors to draw contrast and comparison between two such academic theories explaining youth crime; differential and labeling theories of youth crime.

The differential theory of crime notes that the criminal activities among the youth are acquired through social contact. Therefore, criminal mind and behavior are acquired through contact with a society which in turn represents the people (McShane, 2013). Developed by Edwin Sutherland in an attempt to explain the reason as to why youths engage in criminal actions, the emphasis of the theory is that criminal behavior among minors is a learned behavior. Consequently, a person learns to engage in criminal activity by devoting most their time in the company of individuals who have committed crimes, and such individuals believe that the commission of such crimes is acceptable. The young person in such learning environment, therefore, indulges his attitude, motive and drive for such a crime through careful understanding of the crime from an offender.

Labeling theory, on the other hand, notes that youth crime is a social construction, primarily by the ruling class. Postulated by Howard Becker in 1963, the theory is anchored on the tenets that the individuals in charge of the control of the society label young men from powerless class as deviant. Such labeling is however premised on stereotypical assumptions, and the effect is that young people of these social classes consider themselves criminals based on self-fulfilling prophecies (Kroska, Lee & Carr, 2017). Where the young person considers themselves a deviant as postulated by the ruling part of the society, they end up in criminal careers. Consequently, comparison drawn therefore between differential theory and labeling theory is that crime is socially construed and not innate. The different process that minors go through help in developing the criminal behavior, either from learning or from being labeled deviant.

Youth Crime and Sociology

According to differential theory, the learned behavior among the minors who commit a crime is not inherited, and neither is it invented. However, the criminal nature remains informed by the social norms and values that they draw from whom they substantially are in contact with socially (Akers, 2013). As such, no minor is born with the techniques and skills relevant enough to commit a crime.  Labeling theory equally draws on the same line by outlining that the deviant behavior is not inborn but instead created by the act of labeling. As such, every minor is born free of criminal behavior, and deviant behaviors remain non-invented. Eventually, this comparison indicates that the criminal activities amongst the youth are predicated on interactions with society and not personality as at birth.

Subsequently, another comparison between differential theory and labeling theory is the legal connotation that represents their foundation. According to Becker, the construction of the rules informs the creation of deviant behaviors within young men (Sjöström, 2017). However, it is the reaction of the people towards a deviant behavior that sufficiently leads to the final formation of criminal behavior due to social dissent that hampers the self-concept of the young person. Similarly, differential theory notes that law defines crime despite being caused by social interaction with intimate and non-intimate interactions. Therefore, the legal consensus in determining the ground basis of crime remains similar in both theories.

Eassey & Krohn (2017) notes that witnessing of criminal behavior does not inform the development of criminal behavior in young people. However, such actions are acquired through communication as the primary interaction process. Consequently, where a young person communicates with another person who has committed deviant action or is in the process of such commission, then such is likely to result in the formation of criminal behavior. However, the most robust interaction that leads to criminal behavior is the intimate relations between family members.

Third parties and media on the other are less influential in developing such behavior. The same contrasted against labeling theory indicates that criminal behavior is instead a construction of the rules by the those controlling the society (Akers, 2013). According to Howard Becker, for instance, a fight in a low-income community is a measure of deviant behavior or delinquency. However, in a high-income neighboured, the authorities fail to classify the same as delinquency. As such, crime is developed not from the actions of youth but the reactions of others towards the initial action.

In the differential theory of crime, the learning of the criminal behavior must include the acquisition of techniques and skills in performing the criminal activity. Additionally, the minor must also develop the motive and attitude necessary for the crime from the social interaction. (Gray, Durkin, Call, Evans & Melton, 2015). For example, where a young person interacts with a person who has been involved in murder through verbal communication, they are likely to learn the technique and motive employed by such person.

However, the choice to engage in similar youth crime remains predicated on the social norms and values that such a young person appreciates. The norms are equally learned through verbal communication and different actions. In labeling theory, however, not every deviance is labeled criminal except for negative labels. The formulation of the rules of the society determines whether deviant actions are outlawed or not and represent the primary source of criminal behavior.

Labeling theory provides for two types of deviance; primary and secondary. Primary deviance is emotive reactions to the behavior in question while secondary deviance denotes extreme case of social dissent as a reaction towards the behavior. The difference between the two is that in primary deviance the self-concept is minimally affected while in secondary deviance, the young faces ostracization from the social settings. The resultant effect of secondary deviant is that the young person, therefore, seeks such social recognition from groups that condone such behavior (Cullen & Jonson, 2014).

An example is drawn from acts of criminal prosecution. Criminal prosecution usually causes stigmatization due to the negative label according to its association. The effect of such labeling is in the action of equating the past of an individual to current deviant to the point of creating a belief that the person is a criminal. Therefore, the stigma that young people face represents one means which informs their involvement in the crime. In contrast, no stigmatization in differential theory causes criminal behavior. Such is occasional on substantial social interactions that are informed by criminal behavior.

Another critical contrast between differential theory and labeling theory is the consequence of the primary action. The primary action in differential theory is social interaction while for labeling theory is negative labeling (Akers, 2013). The consequence of social interactions does not necessarily lead to criminal behavior as the youth still has to weigh such an option based on social norms and values learned. Despite the acquisition of knowledge, technique, and skill for the commission of the crime, the same is restrained by social controls. However, negative labeling primarily leads to the development of criminal behavior, especially in secondary deviance. Tentatively, due to societal segregation, the push for the search of an accommodating group causes the young person to only associate with persons tolerant of such deviant behavior.

Further, the aim of labeling theory is concentration on the reaction towards a deviant behavior committed by a young person. As such, there is unintended bias by academicians in the formulation of deviance as a source of criminal behavior among the youth. The concentration of differential theory, however, is twofold (Goldson & Muncie, 2015). First, the criminal behavior must be informed by social interactions of intimate relations although this must not always be the case. Secondly, criminal behavior only stems where the influence of communication is supported by lack of social norms and values for the offending young man. As such, there must be either a positive or negative social inclination for a crime to either result after the acquisition of knowledge, skills, motive, and technique to commit the crime in question.

Youth Crime
Youth Crime

Tentatively, the differential theory provides that where the person in the association is the primary actor in the commission of a crime and believes that such a crime is acceptable, then the criminal behavior is likely to result (Cullen & Jonson, 2014). Nevertheless, for such criminal behavior to arise, then the benefits of the commission of such a crime should outweigh retraction from such conduct. The variation of interactions and learning occasionally differ although the propensity to developing criminal behavior is based on consistency towards exposure. The same does not apply in labeling theory where the propensity of labeling affects the individual only where it is negative to the point of inflicting fulfillment of self-prophecy. Additionally, deviance only creates criminal behavior where it is secondary, and there is social dissent towards the action of the individual. Conclusively, criminal behavior according to labeling theory is not learned but placed upon a youth due to societal reactions.

The differential theory further contends that the learning of criminal behavior is similar to all other learning mechanisms employed in different spheres. However, the downside of such an argument is the motive for the uptake of such process (Muncie, 2014). Thus, according to the theory, all other learning mechanisms must be motivated for individuals to engage in such learning process. Consequently, criminal behavior needs motive before the young person gets into the process despite contentions that it is spontaneous. However, such notions are dismissed with the consideration that learning is innate despite the motive. In contrast to labeling theory, no learning is required while at the same time, the categorization is deliberate rather than spontaneous and lack of motivation

Crime actions represent the expression of specific needs that an individual either desires or desperately need. However, not all crimes are based on needs and want, and at the same time individuals can aspire and achieve needs without resorting to criminal behavior. Such notion represents a primary tenet of the differential theory (Kroska, Lee & Carr, 2017). For instance, in a scenario where two young people desire money and gold and one resort to crime to satisfy such need while the other opts for legitimate means. Thus, the mere need for gold does not inform the reason as to why the other engaged in crime and the other didn’t. The answer in the scenario above is predicated on social norms and values that the two different young people hold and exposure to criminal activity. Consequently, crime results due to the pre-exposure to criminal behavior and subsequent ignorance of the societal norms and values.

On the other hand, Labeling requires negative secondary deviance and social dissent towards the behavior for development of criminal behavior. An illustration stems where authorities treat similar behaviors in different social settings differently. Where for instance a particular kind of deviance is tolerated when unknown to the public although the society takes part in it secretly, such deviance when uncovered results in the development of criminal behavior (Akers, 2013). Such kind of deviance, for example, is taking of illegal drug substances. Although it is usually secretly undertaken, occasional public recognition of such deviance results in being branded criminal and subjection to public shame. It is such reactions that result in the development of criminal behavior in young people. The same becomes extreme where social dissent forces the particular young man to resort to groups that accept the kind of deviance that represent their common relationship.

Lastly, a contrast can also be drawn from the impact of the primary factor in the commission of the crime. The differential theory contends that the impact of learning from known criminals who have accepted criminal behavior may or may not result in the commission of a crime (Goldson & Muncie, 2015). Labeling theory on the other hand points that the deviance if secondary and negative and therefore results in social dissent, then criminal behavior automatically arises due to identity problems. Thus, the probability of development of criminal behavior between the two theories varies among the young people.

In conclusion, it remains apparent that the two academic theories endeavor to create rationale and motive for the rampant statistics involving youth crime. The differential theory alludes the criminal activity within the youth population to the social interactions that they undergo. Such social interactions are either from intimate relations that is family members and relatives or from non-intimate relations including strangers.

Where the young person is exposed to interactions through communication from persons with criminal experience and such persons accepted the crime, then the young person is likely to develop criminal behavior. Nevertheless, for such behavior to ensue, then the young person’s adherence to norms and values within the society remains compromised. In labeling theory, criminal behavior arises among young people where deviant behavior is associated with social dissent, and such reactions create the segregation of the young person from the social recognition they require. Resort to groups that appreciate such deviant behavior automatically results in the development of criminal behavior. Conclusively, both theories provide that criminal behavior among the youth be socially construed and not innate or inherited.

References

Akers, R. L. (2013). Criminology theories: Introduction and evaluation of youth crime. Routledge.

Cullen, F. T., & Jonson, C. L. (2014). Labeling theory and correctional rehabilitation: Beyond unanticipated consequences. Labeling theory: Empirical tests, 63-88.

Eassey, J. M., & Krohn, M. D. (2017). Differential Association, Differential Social Organization, and White‐Collar Crime: Sutherland Defines the Field. The Handbook of the History and Philosophy of Criminology, 156.

Goldson, B., & Muncie, J. (Eds.). (2015). Youth crime and justice. Sage.

Gray, A. C., Durkin, K. F., Call, J. T., Evans, H. J., & Melton, W. (2015). Differential association and marijuana use in a juvenile drug court sample. Applied Psychology in Criminal Justice11(1), 2015.

Kroska, A., Lee, J. D., & Carr, N. T. (2017). Juvenile Delinquency, Criminal Sentiments, and Self-Sentiments: Exploring a Modified Labeling Theory Proposition. In Advances in Group Processes (pp. 21-47). Emerald Publishing Limited.

McShane, M. (Ed.). (2013). An Introduction to Criminology Theory. Routledge.

Muncie, J. (2014). Youth Crime. Sage.

Sjöström, S. (2017). Labeling theory. Routledge International Handbook of Critical Mental Health.

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Social Isolation Independence Learning

Comparing and contrasting Social Isolation, Social Independence and Social Interdependence in terms of potential influences on learning outcomes for individuals and groups

International students experience social isolation for a diversity of reasons like discrimination, or commonly being in circumstances where they feel as their thoughts and judgments are not assessed. Social isolation may possibly lead to incredibly serious mental as well as physical health threats (Mark & Campbell, 2011).  In campuses, social isolation emotion has been scrutinized in numerous studies and is determined to happen on the recital of individuals at dissimilar level. Additionally, the emotion of social isolation in universities begins at the insensible level and subsequently marked different ways among students. Both social isolation and social independence are linked with improved mortality, although it is unsure whether their upshots are independent or whether isolation represents the expressive course through which social isolation prejudice health.

It’s no furtive that international students who are socially isolated to be susceptible to be at superior threat of health issues, from temper disorders as depression toward stress-related chronic circumstances such as heart disease (Baker, & Clark, 2010). During tutoring, social interdependence ought to be ordered in the midst of international students’ learning objectives. International students may possibly engage in a course of endorsing each other’s accomplishment while, all at once, be internalizing principles associated to civic liability and contributing toward the common good.

Even if social isolation is most ordinary within the elderly, international students may also be influenced by both social independence and social interdependence. Abridged social contact, being alone, isolation and independence are connected with condensed quality of existence. Interdependence refers to how group of people assess their level as well as superiority of social contact.

Social isolation may possibly be more precisely measured than social independence through the number of communal contacts that international students have. Social interdependence might be distinguished from social dependence, self-determination, and helplessness (Agarwal & Nagar, 2011).  Social dependence exists as soon as the goal attainment of student A is exaggerated by student B’s actions, although the reverse is not accurate.  Conversely, Social independence subsists once the goal accomplishment of student A is unaltered by student B’s actions.  Social helplessness exists once neither the individual nor others may possibly influence goal accomplishment. Interests might not be absolutely linked with social isolation and a huge deal relies on the personality of the independence made (Coleman, 2011).

The teaching tactic of outcomes-based health education is mostly anchored in both social isolation and social independence. For this reason it might be very hard for social isolation to detriment from Outcomes-based health education as of their incapability to form associations or work mutually with others within groups. Within the light of this impediment, the aspire of the explore was to resolve the association linking social isolation and intellectual accomplishment at major health level as well as to determine which aspects relate toward social isolation ordinarily (Coleman, 2011). The variance within academic accomplishment may possibly be explained through social isolation making it a vital changeable once academic accomplishment is envisaged at major health level.

Communally isolated individuals are extra expected to experience unhelpful health outcomes like failing to seek out treatment for state of affairs before they turn out to be life-threatening (Gillies, Ashman & Terwel, 2008). Additionally, international student with energetic social networks are extra expected to come across friends, or associates who persuade them to visit the doctor so as to acquire a determined cough checked out, while an isolated individual might allow the cough to advancement until they practice serious complexity breathing. Isolated individuals are expected to hunt for or get behavior for drug compulsion problems that they may be not capable to be familiar with on their own. Grown-up adults are particularly prone toward social isolation as their relatives and friends die.

Despite the fact that loneliness is frequently fleeting, accurate social isolation and social interdependence habitually lasts for years and seems to be a chronic stipulation which affects all features of a person’s life and can have severe outcomes for health and safety. Socially isolated students have no solitary to twist to in individual crisis, no one to divulge in for the duration of a predicament, and no one alongside whom to assess their individual behavior aligned with or from whom to discover etiquette or socially satisfactory behavior (West, Tjosvold, & Smith, 2005). Both social isolation and Social interdependence may possibly be problematical at any age even though it has dissimilar effects for dissimilar age cohorts (social isolation for young people might have dissimilar outcomes than social interdependence for mature people, even if both age cohorts might experience it).

Social independence and social Interdependence may help international students acquire or build up a worldwide intellectual ethos: local or local issues are referred to broader formation, courses and events throughout comparative, major and minor advances and methods. Individuals exercise critical consciousness coping with social issues, appealing explicit debates, and learn to distinguish the scalar insinuations of facts claims (Thanh, 2014). Additionally, international students are capable to plan, execute and review a high quality innovative academic or practical research in a comprehensive, meticulous and reliable manner, of superiority to value periodical in peer-reviewed article. Individuals display comprehensive understanding and serious assessment of the dynamics of authority relationships in preferred locations, in a background of strengthened urbanization and worldwide interconnectedness.

Social independence enable variables linked to social connections within individual, number and occurrence of connections, variety of network ties, and variety of network ties to be assed. A number of inquiries facilitate international students to recognize their discernment of their individual academic success, and identify their associations with other members they recognized as “knowing” in their course (DeZure, 2000). Both social independence and social Interdependence may also help international students learn to link through theory and/or carry out their academic movement to health issues with extraordinary spotlight on ethical issues as well as critical commitment.

Social Isolation Independence

Social interdependence characteristically results within opposition relations that occur as individuals deject and barricade other individuals’ efforts to accomplish. On the other hand, social independence takes place as students persuade and assist each other’s efforts so as to accomplish the group’s objectives (Johnson, 2009). International students spotlight both on raising their individual success and avoid anybody else from being extra successful than they are. No relations exist as soon as individuals work separately without any interface or exchange with each other. Moreover, individuals spotlight only on raising their personal success and disregard as inappropriate the efforts of others.

To turn out to be a fully residential adult one must actualize numerous health developmental facets, one being the societal facet (Thanh, 2014). If international students social health development is hindered, it might not simply result in social isolation, although can also manipulate other health developmental facets. In view of the fact that social isolation hampers individual’s psychological health, international students who either outline poor associations or have complexity in outlining sound associations with their parents, friends or teachers, will unavoidably suffer developmental self-possession whereas others advancement towards adulthood in general.

In fact there is extremely little information on the connection linking social isolation and social independence achievement, particularly for the period of the primary school years once group work is exploited in the learning state of affairs (Healy, 2008). An extra inclusive approach, taking into consideration the causal aspects of social isolation, the results of social isolation on health accomplishment and the processes of interference might be extremely useful.

References

Johnson,  D.W, (2009) An educational psychology success story: Social interdependent theory and cooperative learning. Educationally researcher, pp 365- 379

Mark, M. M., Donaldson, S. I., & Campbell, B. (2011). Social psychology and evaluation. New York: Guilford Press.

Agarwal, R., & Nagar, N. (2011). Cooperative learning. Delhi: Kalpaz Publications.

Encyclopedia of the sciences of learning: 1. (2012). New York: Springer.

Coleman, P. T. (2011). Conflict, interdependence, and justice: The intellectual legacy of Morton Deutsch. New York, N.Y: Springer.

Gillies, R. M., Ashman, A. F., & Terwel, J. (2008). The teacher’s role in implementing cooperative learning in the classroom. New York: Springer.

West, M. A., Tjosvold, D., & Smith, K. G. (2005). The essentials of teamworking: International perspectives. Chichester, England: Wiley.

Thanh, P. T. H. (2014). Implementing Cross-Culture Pedagogies: Cooperative Learning at Confucian Heritage Cultures. (Implementing cross-culture pedagogies.) Singapore: Springer.

Healy, L. M. (2008). International social work: Professional action in an interdependent world. Oxford: Oxford University Press.

DeZure, D. (2000). Learning from change: Landmarks in teaching and learning in higher education from Change magazine, 1969-1999. Sterling, Va. [u.a.: Stylus Publ.

Information Resources Management Association. (2014). Computational linguistics: Concepts, methodologies, tools, and applications.

Baker, T, & Clark, J. (2010) Cooperative learning- a double-edge sword: A cooperative learning model for use with diverse student groups. Intercultural education, 21(3), pp 257-268

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Servitization Operations Management

Implications of Servitization in Operations Management

The concept of servitization in operations management has become more pronounced in the last one decade. The term sensitization is defined as where the manufacturer offers services that are in line with the traditional products offerings. The service industry is growing globally and dominating the world’s economies and much of the strategic thinking of business. Businesses have in the recent bundled together products and services with the aim of increasing value of their companies. This paper aims to increase the understanding of the concept of servitization in operations management. The paper is based on a systematic review of journals of servitization in manufacturing. Through critical literature review, the paper seeks to understand the extent of servitization across the global, the motivation behind servitization in operations management and the implication of servitization in operations management.

Literature Review

Servitization is happening across all the industry and all the countries across the globe. According to Vandermerwe and Rada (1998), it is the forces of globalization, fierce competitive pressure and forces of deregulation that have pushed both firms in the services industry and the manufacturing sector to dramatic move into services. Manufacturing firms have been offering services but not to the extent they are offering today. The manufacturers have specialized more in providing the services that are in line with the products they produce and have set up special units and companies to provide specialized services.

The process of servitization of business occurs in a multi-stage process;

Stage 1: Goods or Services

Initially, companies and firms were either providing goods or offering services. The firms either fit in one of the two companies, with little or no overlap. This was viewed as generating a low level of profits and hence limited revenue to sustain the company in the current competitive market environment. As a result, there was a need for a more advanced source of income which could assist in generating a better income for the day-to-day running of business activities. This led to the next stage in the process of servitization which is more advanced as discussed below.

Stage 2: Goods and Services

With the development of technology and converging trends, it becomes clear that companies needed both goods and services. Therefore, the firms started offering services that were in line with their products. For example, the computer companies demonstrated the inseparable ability of goods and services once and for all.

This stage enabled companies to secure a better profit than the initial stage of dealing with either a good or a service. Apart from the profitability and high generation through producing goods and services at the same time, this stage gave firms and companies superiority over the small firms dealing only with one line of product. Furthermore, it led to strong customer sovereignty and loyalty which increased firm profits and revenue to enable them to cope with the existing tough competition in the global market. Firms saw that this was not enough and they sought to a more advanced stage which could incorporate more commodities.

Stage 3: Goods, services, Support, knowledge, and self-service

The firms have now developed to an advanced stage. This is where the firms consisting of focused bundles that are customers oriented and composed of goods, services, support, self-service, and knowledge. By engaging in this type of business practice, it enabled the firms to acquire more capital goods for producing final products for customers spread across the globe.

The performance was seen as being high together with quality; profitability increased revenue at the same rate. These coupled with government subsidy and provision of incentives contributed to the robust growth in the firm’s sizes and hence development. The bundles are in some cases high standardized and in other cases customized.

Servitization Operations Management
Servitization Operations Management

Implications of servitization in operations management

Servitization among the manufactures and other firms across the world has been as a result of increased competitive pressure, forces of globalization as well as the development of technology. Therefore, the manufacturers move to providing services that are in line with their traditional products to increase their competitiveness in the market. The motivation for servitization can be discussed in particular forms of service offerings. In this respect, there is customer based motivation aim at improving the quality of the services that are offered to customers, product-related services which are aimed at providing support services to the products, competitive motivation which is aimed at improving the functioning of the products as well as services aimed at supporting clients. Other motivations include economic motivations which are aimed at increasing the revenues of the firm (Raddats et al., 2016).

Servitization works through some ways to increase the competitiveness of the firms. Some of these ways include setting barriers to possible competitors. Servitization creates barriers for customers to be wooed by competitors. If the customers are in a position to get all their need from the firm, that is both goods and support services, then they are more likely to be glued to the company and remain loyal to the firm. The main idea is to block potential competitors by making the entry into the market too expensive or complex.

Servitization also creates barriers to their customers. The customer who is used to getting all the services from any particular firm will be less likely to leave the firm for a competitor. Offering services to customers together with the products makes it unnecessary for them to look for other firms. Servitization also creates dependency on the side of the customers. Through servitization, the customers will depend so much on the products of the firm, and therefore the firm can keep the customers.

Spring and Araujo (2013) discuss the role of servitization in product differentiation. For this case, firms take the advantage of servitization by offering product-services combinations that are unique to any other firms’ products. Servitization increases the complexity of the firm’s products and services and therefore hard for the competitors to match the design of the products and the services. This makes the firm’s products face little competition in the market, and therefore the income from sales is kept at optimum point hence maximum profits made. Building customer loyalty in the market comes as a result of barriers to entry by other potential competitors since servitization offsets this through product-service combination which makes it different from products of other firms.

Servitization and Profitability

Visnjic and Van look (2012) argues that the relationship between servitization and profitability is complex. The approach that is adopted by any particular firm is the determinant of the level of profitability of servitization. Profitability is related primarily to the level of service culture, that is, to the firm qualities and that of the employees since they participate directly in the company’s activities. The provider’s employees must be autonomous, competent and able to communicate well with customers and be able to gather useful information for the firm. The customer interface is very important. These aids in the high levels of sales and hence boosting the profitability level. Therefore, service culture becomes a key element in the performance of every firm.

Services are globally more profitable. The main reason behind this is the fact that services have a lower price sensitivity. As a whole, results confirm the assumption that the operational service system must be adapted to the service strategy to attain expected financial benefits (Baines et al., 2017). While managers of manufacturing firms are skeptical, that service could generate potential revenue and real value.

It has been observed that in industries with a high-installed product base (e.g., aerospace, automotive industries), higher revenue potential often exists as service revenues can be one or two orders of magnitude greater than new product sales (Meely, 2008). Moreover, as services seem to be a steadier source of revenue (Smith, Maull and Ng, 2014), increasing service revenues can serve as compensation for declining revenues in equipment sales, and because services are more resistant to economic cycles, they can support steadier cash flows in periods of economic crisis. Furthermore, service offerings tend to be less sensitive to price competition and tend to promote customer loyalty.

Motivation for Servitization

Demand-based/customer demand motivation

Due to high demand for certain services in the local/global markets by the customers, the company may be forced to venture into servitization process and offer the service in high demand. This motive is strongly held by the fact that there is a ready market for the service to accompany to initial products produced by the firm. The final result is the high-profit yield accompanied by high level of income generation (Vinsnjic and Van look, 2012).

Development purposes

A firm is said to be developed when it produces a wide range of products to be sold in the market. Since every company aspires to increase its profitability and the desire for continued growth, it thus starts servitization due to the high and first service revenues (Vinsnjic and Van look, 2012). Therefore, the firm will experience growth with the product- service provision and hence developing at either constant or increasing rate depending on the technology and labor applied.

Conclusion

Servitization has become an emerging issue in the global business for the past one decade due to the benefits accruing from its practice. From the above description in evolution section, it is a fact that companies advanced progressively from a lower stage of producing single, that’s dealing with a line of product to a better stage of adopting two line products of producing goods and service provision and then finally to the final advanced and technical stage of incorporating goods, services, support, knowledge, and self-service. Furthermore, we looked at the implications of servitization in operations management and finally the critical motivations for practicing servitization as discussed in the above context.

Bibliography

Baines, T., Baines, T., Ziaee Bigdeli, A., Ziaee Bigdeli, A., Bustinza, O.F., Bustinza, O.F., Shi, V.G., Shi, V.G., Baldwin, J., Baldwin, J. and Ridgway, K., 2017. Servitization: revisiting the state-of-the-art and research priorities. International Journal of Operations & Production Management, 37(2), pp.256-278.

Neely, A., 2008. Exploring the financial consequences of the servitization of manufacturing Operations Management Research, 1(2), pp.103-118.

Raddatz, C., Baines, T., Burton, J., Story, V.M. and Zolkiewski, J., 2016. Motivations for servitization: the impact of product complexity. International Journal of Operations & Production Management, 36(5), pp.572-591.

Spring, M., and Araujo, L., 2013. Beyond the service factory: Service innovation in manufacturing supply networks. Industrial marketing management, 42(1), pp.59-70.

Smith, L., Maull, R., and CL Ng, I., 2014. Servitization and operations management: a service dominant-logic approach. International Journal of Operations & Production Management, 34(2), pp.242-269.

Vandermerwe, S. and Rada, J., 1988. Servitization of business: adding value by adding services. European management journal, 6(4), pp.314-324.

Visnjic, I. and Van Looy, B., 2012. Servitization: Disentangling the impact of service business model innovation on the performance of manufacturing firms.

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Climatic Alteration United States Economy

An Exploration on How Climatic Alteration Has Affected the Economy of the United States

The impact of climatic alteration varies considerably across the US due to the size of the nation, economies, different topographies, and ecosystems. The implications of the climatic alteration will likely put immense strains on public financial plans more especially the cost of maintaining road and rail networks and increasing replacements. Depending on the climatic alteration, economic losses translate into lost tax revenues, and federal officials have raised taxes in the United States to help sustain safety and sufficient provision of goods and services.

One of the most noteworthy impacts of climatic alterations in the US may be related to water supply (Inslee, 2016). The continued economic, as well as population growth, has exacerbated existing and future stresses placed on supplies. Substantially, the nature of climatic alterations all over the nation make the net effects of worldwide warming on the agricultural sectors doubtful. Financial impacts on the agricultural sector vary by region particularly areas where precipitation levels are likely to remain stable. Ideally, warmer temperatures result in augmented threats of severe drought by increasing the pace of evaporation.

This dissertation explores how climatic alteration has affected the economy of the United States and the impacts caused include water scarcity, wildfires, energy, and infrastructure stress, flooding, and Hurricane intensity. Moreover, the rise in sea levels, temperatures, the occurrence of extreme precipitation conditions alternated with periods of elongated droughts will also be the centerpiece of discussions in this context.

The study presents projections of climatic effects on the US, by means of information obtained from existing data and modeling exercises that fall into one of the two quantification designs. Policy makers are pursuing clarifications to help in avoiding the worst implications of climatic alteration while transitioning the country to a green energy compliance system. On the other hand, the U.S global change study program lately released a wide-ranging report describing some of the major impacts of climatic alteration.

Climatic Alteration Economics
Climatic Alteration Economics

Dissertation Objectives

  • To identify the economic effects of climatic alteration that occurs all over the country
  • To classify the economic impacts and how they are strewn across regions and within the economic landscape and society
  • To determine the adverse climatic alterations and the most affected sectors that supply crucial goods and services to society
  • To determine how Climatic alteration impacts will place vast strains on public sector budgets and how their occurrence dictates EPA’s priorities and financial situations.

Dissertation Contents

1 – Introduction
Background information on the Study
Problem statement of the study
Purpose of the Study
Dissertation objectives
Study questions and statement of hypothesis
Statement of hypothesis
Significance of the Study
Limitation of the study

2 – Review of the Literature
Introduction to literature review
Review of the principles and concepts
Climatic theories
Anthropogenic worldwide warming theory (AGW)
The Bio-thermostat theory
Cloud formation and Albedo theory
Human-related forcing besides greenhouse gases
Planetary oscillation theory
Solar Variability
Economic theories
Adam Smith and the invisible hand of capitalists
Karl Marx and the exploitation theory
The Keynesian concept of government intervention in the economy
Review of the empirical literature
Summary of the literature and the emerging issues

3 – Study Methodology
Introduction to study design and methodology
Areas of study
Study design
Targeted climatic zones
Targeted economic zones
sample areas of concern and sampling mechanisms
Data collection methods
Data collection procedure
Framework for data analysis and presentation

4 – General Overview
Scope of the results
Data analysis criteria
Findings/results
Statewide Findings
Overall economic findings
Alternative representation of data

5 – Results Interpretation, Recommendations and Conclusions
Interpretations of the results
Recommendations
Conclusions

References

View This Dissertation Here: Economics Dissertation Climatic Alteration

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Investment Appraisal Techniques

Investment Appraisal Techniques

Investment appraisal is normally undertaken by a company before committing to any form of high-level capital spending. The appraisal has two main features including the assessment of the level of returns expected that could be earned from the investment made and an estimate of the future benefits and costs in the span of the project (Ross et al. 2010). In this regard, long-term forecasting is important for estimates of future benefits and costs especially in the purchase of the non-current asset. There are several techniques for investment appraisal, but the two most basic include the payback and return on capital employed (ROCE).

ROCE follows the same principle with the accounting rate of returns as they both relate the investment and the accounting profits (Lumby & Jones 2001). It is computed by getting the percentage of average pre-tax annual profits to the initial capital costs. The method has the advantages of simplicity, especially in the computation. This is because it gives a percentage that indicates the rate of return expected from an investment that is familiar to the management. Also, the technique can be easily linked to other accounting measures (Lumby& Jones 2001). However, the method has disadvantages in that it cannot account for project life, the timing of cash flows and mostly varies depending on policies of accounting employed. Additionally, the method ignores working capital and fails to measure the absolute gain attained while it still lack definitive signal for investment (Watson & Head 2010).

Examples

The ROCE technique is quite popular in the assessment of the business performance after the investments are completed (Haka 2006). This technique is widely used as a measure of the business performance as well as to measure the performance of the management (Lumby & Jones 2001). It is most commonly used in the privately owned businesses as it depicts an increase of wealth for the owner. Also, it can be applied in the expression of the financial goals of a business (Watson & Head 2010). Both independent and mutually exclusive projects can employ the ROCE technique. For example, if a project needs an investment of $800,000 and earns cash inflows of 100, 200, 400, 400, 300,300, 200 and 150 in terms of thousand dollars in a span of seven years.

In addition the assets will be sold at $100,000 at the end of the seven years. The ROCE for this project will be 18.75%. The decision rule as to accept the project or not is determined by looking at the expected ROCE and the hurdle rate from the management. If the expected ROCE is more than the target rate, then the project is accepted (Haka 2006).  The popularity of this techniques has however been declining most probably due to the inflation rates that have led to higher interests rates making the decision-making process difficult. In this case, the method is best suited for short-term business approaches (Haka 2006).

Investment Appraisal Techniques
Investment Appraisal Techniques

Payback period, by definition, is the rough estimate of the time taken to recoup the investments made in a project (Lefley 1996). This technique has two variants: discounted and simple payback periods. The periods are calculated by computing the quotient of initial investment divided by annual cash flow (Lefley 1996). This investment appraisal method has the advantages of simplicity and can use the cash flows and not the accounting profits. This is because the profits in the company cannot be sent and are subjective (Watson & Head 2010). Also, cash is used as the dividends have to be paid. For instance, an expenditure of $2million to get cash inflows of $500,000 per year for some seven years can be assessed using payback. The estimated period will be 4 years and the cumulative cash flow would change over the years. The decision rule in using payback is that the objects that pay up to the specified target payback should be accepted (Wambach 2000). Also, the fastest paying option is always considered.

Also, payback has proven to be very useful in some conditions such as in the improvement of the investment conditions and adaptation to the rapidly changing technology (Lefley 1996). Additionally, the technique maximizes the liquidity, increases company growth while still minimizing the risk.

Comparison of the Two Methods

Despite the numerous advantages, the payback method also has some limitations (Wambach 2000). It does not take into consideration the returns that occur after the period and also disregards the cash flow timings although this can be done by the discounted payback period. In the same regard, it does not provide a definitive investment signal making the method subjective (Lefley 1996). Lastly, the payback method does not take into account the profitability of the project.

The best of the methods in this case would be the payback. This is especially because of the cash flows involved in the projects. The method puts into consideration the time as well as the value for money. Payback is also invaluable especially in the world of unlimited resources and the information provided is understandable (Lefley 1996). ROCE and payback period are both classical techniques in investment appraisal (Wambach 2000). Industries are divided among the two methods although it is possible to utilize both although the non-finance managers prefer to use ROCE (Ross et al. 2010). In this regard, two decisions could be made. For instance, a project could be accepted if the ROCE is below 13% and it can payback within four years (Watson & Head 2010).

Conclusion

The forecasts are important for any business before embankment of any project. Although the investment appraisal may but produce accurate results, it would be important to use as many techniques to avoid losses. Spending on too much on current assets is unrealistic, and the forecasts need to be very careful in order for the best possible value to be gotten. Although several methods for the investment appraisal exist, the return on capital employed and payback remains the most popular one especially with the managers with low skills on finances.

References

Lefley, F 1996, ‘The payback method of investment appraisal: a review and synthesis’, International Journal of Production Economics, 44(3), 207-224.

Wambach, A 2000, ‘Payback criterion, hurdle rates and the gain of waiting’, International Review of Financial Analysis, 9(3), 247-258.

Lumby, S, & Jones, C 2001, Fundamentals of investment appraisal, Cengage Learning Business Press.

Haka, S F 2006,‘A review of the literature on capital budgeting and investment appraisal: past, present, and future musings’ ,Handbooks of Management Accounting Research, 2, 697-728.

Ross, S, Hillier, D, Westerfield, R, Jaffe, J, & Jordan, B2010,‘Corporate Finance’, Second Edition.

Watson, D, & Head, A 2010,Corporate finance: principles and practice, Pearson Education.

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