...The Nature of Risk Preferences: Evidence from Insurance Choices Levon Barseghyany Francesca Molinari Cornell University Cornell University Ted O’ Donoghue Joshua C. Teitelbaum Cornell University Georgetown University July 21, 2010 Abstract We use data on households’ deductible choices in auto and home insurance to estimate a structural model of risky choice that incorporates "standard" risk aversion (concave utility over …nal wealth), loss aversion, and nonlinear probability weighting. Our estimates indicate that nonlinear probability weighting plays the most important role in explaining the data. More speci…cally, we …nd that standard risk aversion is small, loss aversion is nonexistent, and nonlinear probability weighting is large. When we estimate restricted models, we …nd that nonlinear probability weighting alone can better explain the data than standard risk aversion alone, loss aversion alone, and standard risk aversion and loss aversion combined. Our main …ndings are robust to a variety of modeling assumptions. JEL classi…cations: D01, D03, D12, D81, G22 Keywords: deductible, loss aversion, probability weighting, risk aversion We are grateful to Darcy Steeg Morris for excellent research assistance. For helpful comments, we thank Matthew Rabin as well as seminar and conference participants at Berkeley, UCLA, the Second Annual Behavioral Economics Conference, the Summer 2010 Workshop on Behavioral/Institutional Research and Financial...
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...world and the advent of the information age. Define globalization, describe how it evolved over time, and describe the key drivers of globalization. Explain what an information system is, contrasting its data, technology, people, and organizational components. Describe the dual nature of information systems in the success and failure of modern organizations. Describe how computer ethics impact the use of information systems and discuss the ethical concerns associated with information privacy and intellectual property. CHAPTER OVERVIEW This chapter helps the student understand the role of information systems as organizations move into the digital world, and how they have helped fuel globalization. The student will learn what information systems are, how they have evolved to become a vital part of modern organizations, and why this understanding is necessary to become an effective manager in the digital world. The student will also learn how globalization evolved, and what opportunities globalization presents for organizations. The importance of ethics as it relates to IS is discussed especially as it relates to information privacy, accuracy, property, and accessibility. A number of cases and illustrations are used, for example, Apple products and how they have evolved over time (such as the iPhone, Mac Air, iPod, and iPad). CHAPTER OUTLINE PREVIEW Managing in the Digital World: Apple INFORMATION SYSTEMS TODAY The Rise of the Information Age BRIEF CASE Technology at Starbucks...
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...in which the organization is involved; appraises it’s competitors; and fixes goals to meet all the present and future competitor’s and then reassesses each strategy. SM as a process consists of different phases, which are sequential in nature. These four broad phases could be encapsulated as follows: 1. Strategic Intent 2. Environmental Scanning & Formulation of Strategies 3. Implementation of Strategies 4. Performing Strategic Evaluation and Control. The strategic approach therefore, is an ongoing process. It is continuous and recognizes the need to be open to changing goals on the basis of shifting circumstances within the environment. It is a process that requires monitoring and review mechanisms capable of feeding information to managers continuously. Strategic management or planning are not one-shot approaches, they are ongoing. Types of strategic approaches: Push-codification strategy Pull-personalization strategy 2. Explain the disruptive power of technology with reference to change in economic environment. PARADIGM SHIFT Its ability to break the rules that limit how we conduct our work Needs as well as aspirations are shaped people’s understanding of what is possible Critical to companies looking for competitive advantage 3. What you will study while designing a KM project. The things we will study while designing a km project : 1. What groups are currently undergoing changes in operating routines? What is the...
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...INTEGRATED ANALYSIS HOW INVESTORS ARE ADDRESSING ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS IN FUNDAMENTAL EQUITY VALUATION FEBRUARY 2013 Co-funded by the PREPARATION OF THIS DOCUMENT In September 2011 the PRI Initiative convened a working group of signatories to investigate how equity investors and analysts are integrating environmental, social and governance (ESG) analysis into their fair value calculations. The members of the ESG Integration Working Group are: Neil Brown Alliance Trust Investments - Working Group Chair Bruce Kahn Deutsche Bank Climate Change Advisors Andre Bertolotti Quotient Investors Masahiro Kato Mitsubishi UFJ Trust and Banking Corporation – observer Paul Bugala Calvert Investments Tony Campos FTSE Group Erica Lasdon Calvert Investments Cécile Churet RobecoSAM Barb MacDonald British Columbia Investment Management Corporation Leanne Clements London Pension Funds Authority Mary Jane McQuillen ClearBridge Investments Jennifer Coulson British Columbia Investment Management Corporation Christie Stephenson NEI Investments Lisa Domagala Solaris Investment Management Ralf Frank DVFA (Society of Investment Professionals in Germany) Dr. Hendrik Garz Sustainalytics (previously employed by West LB) Bryan Thomson British Columbia Investment Management Corporation Mike Tyrrell SRI-Connect Stéphane Voisin Cheuvreux Niamh Whooley Société Générale Robert Hauser Zürcher Kantonalbank (ZKB) Between...
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...Technology, Information Technology included, have changed our lives in so many ways. It changed how we recorded our thoughts into written words, how we communicate with one another, how we shop, bank, how we keep our memories, most aspect of our lives. It significantly changed the manufacture industry and touched almost every single industry. The first computer was invented in 1939 by Hewlett-Packard in a garage in Palo Alto, California. It was mostly used in military/government and universities/science lab. It took 40+ years for the first personal computer to be created by IBM (1981). The first personal computer (PC) ran on a 4.77 Mhz Intel 8088 microprocessor [1]. After that computer world has advanced leap and bound, hardware as well as software. Some of the laptops today run on a 4.0 Ghz (almost 1000 times more powerful). According to US census, in 2012, 80% of all house hold had a computer at home in the US [2]. Technology changed the way we recorded our written words. For hundreds (if not thousands) of years, we used pen and pencil to write on paper. We later used type writer to type on paper, then type into computer. Now, with the help of some software, we don’t even have to type. We can “speak” or “talk” for computer (or other devices like smart phone, tablet, etc) to “type” for us. Thanks to technology, we now have “text-to-speech”, “talk-to-type”, and “talk-to-text”. As technology changes, businesses had to change to survive the IT impact...
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...INTEGRATED ANALYSIS HOW INVESTORS ARE ADDRESSING ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS IN FUNDAMENTAL EQUITY VALUATION FEBRUARY 2013 Co-funded by the PREPARATION OF THIS DOCUMENT In September 2011 the PRI Initiative convened a working group of signatories to investigate how equity investors and analysts are integrating environmental, social and governance (ESG) analysis into their fair value calculations. The members of the ESG Integration Working Group are: Neil Brown Alliance Trust Investments - Working Group Chair Bruce Kahn Deutsche Bank Climate Change Advisors Andre Bertolotti Quotient Investors Masahiro Kato Mitsubishi UFJ Trust and Banking Corporation – observer Paul Bugala Calvert Investments Tony Campos FTSE Group Erica Lasdon Calvert Investments Cécile Churet RobecoSAM Barb MacDonald British Columbia Investment Management Corporation Leanne Clements London Pension Funds Authority Mary Jane McQuillen ClearBridge Investments Jennifer Coulson British Columbia Investment Management Corporation Christie Stephenson NEI Investments Lisa Domagala Solaris Investment Management Ralf Frank DVFA (Society of Investment Professionals in Germany) Dr. Hendrik Garz Sustainalytics (previously employed by West LB) Bryan Thomson British Columbia Investment Management Corporation Mike Tyrrell SRI-Connect Stéphane Voisin Cheuvreux Niamh Whooley Société Générale Robert Hauser Zürcher Kantonalbank (ZKB) Between...
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...drive home? People would say its because they had a hard day at work so they need a drink, but one drink leads to two, three and more .Before long, there several drinks in and time to go home. Do they get home in one piece? “Statistics” say 88% of drink drivers will get home in one piece and not cause an accident; however the 12% that don’t have a accident . It may only be to a wall our road sign, you could also lose your licence: therefore you may need your licence for your job. It also could be a member of the family. Is drink driving as bad as we claim it to be? YES. There’s no excuse for it. Drink driving cause serious injury or death. Each year numerous lives are lost due to irrational driving. The disregard for safe driving has been a predicament to Cheshire for years. For years police have relied heavily on speed cameras, breath testing and heavy fines as a deterrent against unlawful drivers. Over the years fatality rates have increased Cheshire police have composed a series of safe driving campaigns. : Cheshire Constabulary report every year that eleven people die each year as a result of drunk driving. : Young men in the 20s are four times more likely to be involved in drink driving accidents than other age group. : On average three thousand people are killed or seriously injured each year as a result of drink driving. We all have choices that we make everyday. Going out for tea our on your way home could be a families worst nightmare. We all...
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...SEGMENT “Lyft is all about taking cars off the road via ridesharing. This is NOT merely a cool new use of technology to efficiently onboard and route more cars, cabs, town cars and limos. Lyft wants to use technology to get everyone who currently owns a car to join a trusted information network to share rides.” – Scott Weis, 2013 Lyft current specific segments are: • Socially conscious • Environment friendly • Tech-savvy millennials • Busy city professionals • Population active at night o College towns o Large cities • Cost conscious Lyfts’ general segments are: Criteria Segment Geographic region Across all United States Density Urban, Suburban, Rural Demographic age All ages Family size All sizes Gender All genders Income All income ranges Occupation All occupations Education All educational backgrounds Race All races Generation All generations Nationality All nationalities Social class All classes Psychographic lifestyle Social-orientation Environment conscious Technology savvy Cost-conscious Benefits Social interaction Community sense Safety Convenience Environment improvement User status All; Nonuser, ex-user, potential user, first-time users, regular users Usage rate Light to medium users Loyalty status Medium Readiness stage Unawares and aware customers Attitude toward product Enthusiastic and indifferent TARGET Lyft was created to be a service for folks who want to take advantage of the empty seats in other people’s...
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...Recruitment and Selection Strategies Recommendations Chasity Hopkins HRM 531 May 28, 2015 David Van Gorder Recruitment and Selection Strategies Recommendations Recruiting for employees and deciding whom to select can be a tedious task but is often the most important. Without employees, the organization will not meet the organizational goals. Bradley Stonefield, the owner of Landslide Limousine, has an organizational goal to establish a limousine company. The plan is to have a net revenue of $50,000 the first year of operation with a -5% annual revenue growth. Bradley is looking to select 25 employees in the initial start of the business; of the 25 employees, Bradley believes there is going to be a 10% turnover rate. Atwood and Allen Consulting recommends Bradley look at the following areas: forecasted demographic changes, an analysis of projected workforce needs - for the next five years based on organizational goals as well as demographic changes. Also, look at workforce diversity objectives, organizational branding, methods for recruiting candidates, methods for screening candidates, interview methods, testing procedures, interview process considerations and methods for selecting candidates. Forecasted Demographic Changes Landslide Limousine should consider the different demographic changes in their area. Bradley should look into the forecasted demographic changes for Austin, Texas. First, he should consider the types of demographic changes that can affect...
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... 3 2. Code of Ethics 4 3. Information Security and Framework 5 4. Privacy of Personal Data 6 1....
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...Executive Summary This report was produced for British Airways for the purpose of providing strong competitive edge in Airline industries. BA is a leader in airline operators in UK which face a lot of competition in the last decade. This report will analysis, identify and evaluate strategic choices that BA could pursue both internal and external environment forces. Some of the strategic will includes the strategy gap of BA. Through this strategic, we have recommended that BA should focus on their communication, planning, forecasting and strategy formulation to restore their competitive advantage within the industry. Table of contents Table of contents 1.1 Report objectives 1.2 Company overview 1.3 Strategy gap 1.4 Current strategies 2.0 External Analysis 2.1 PESTEL Analysis 2.2 Porters’ five forces 3.0 Internal Analysis 3.1 Resource based view 3.2 Value Chain 4.0 Key strategic Issues 5.0 Strategy formulation 6.0 Conclusions 7.0 Recommendations 1.1 Report Objectives The main objective of this report is to recommendation a good strategy for BA. This report will consist of sections which includes the followings: To found out the current strategic position of BA, Analysing the internal and external environment forces of BA, recommend strategic options using the internal and external analysis, evaluate strategic choices that BA could pursue and discuss the implementation. 1.2 Company Overview ...
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...conflicts are often seen as larger social issues, they may play out every day on the team level in the workplace in ways that may affect productivity and may lead to frustration, conflict and poor morale. For example, Boomers may believe gen Xers are too impatient and unwilling to try out the tried-and-tested strategies, while gen Xers may view boomers as always trying to say the right thing to the right person and being inflexible to change. Traditionalists may view baby boomers as self-absorbed and prone to sharing too much information, and baby boomers may view traditionalists as authoritative and rigid. And, gen Xers may consider millennial too spoiled and self-absorbed, while millennial may view gen Xers as too cynical and negative. 2. Background: A generation is defined as an identifiable group that shares birth years, age location, and significant life events at critical developmental stages, divided by five-seven years into the first wave, core group, and last wave (Kupperschmidt, 2000). A generational group, often referred to as a cohort, includes those who share historical or social life experiences, the effects of which are relatively stable over the course of their lives. These life experiences tend to distinguish one generation from another (Jurkiewicz & Brown, 1998). A cohort develops a personality that influences a person's feelings toward authority and organizations, what they desire from work, and how they plan to satisfy those desires (Kupperschmidt,...
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...system does not depend on its environment, but focuses on running things efficiently. Open systems [Exhibit 1.2] must interact with the environment to survive, and managers realize they must pay close attention to what is going on with their customers, suppliers, and competitors. A system, in general, is a set of interrelated elements that acquires inputs from the environment, transforms them, and discharges outputs to the external environment. Subsystems perform functions such as production, boundary spanning, maintenance, adaptation, and management. Organizational Configuration Henry Mintzberg says that every organization has five interrelated parts [Exhibit 1.3A]: technical core of people who do the basic work of the organization; technical support creates innovations in the technical core with employees such as engineers and researchers; administrative support is responsible...
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...1(d).Value Chain Analysis: A Way to profit improvement & cost Reduction Learning Objective 1. how to identify the value added activity 2. how to rectify the non –value added activity 3. application in profit planning & cost reduction INTRODUCTION Competitive advantage for a company means not just matching or surpassing their competitors, discovering what the customers want and then profitably satisfying, and even exceeding their expectations. As barriers to inter-regional and international trade are diminishing and as access to goods and services are growing, customers can locate after identification and «the best of what they want, at an acceptable price, wherever it is in the world. Under growing competition and, hence, rising customer expectations, a company's penalty for complacency becomes even greater. A strategic tool to measure the importance of the customer's perceived value is value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of activities and value-creating processes in the market place, value chain analysis becomes essential for assessing competitive advantage. Value analysis or value engineering is one of the most widely used cost reduction techniques. It can be defined as a technique that yields value improvement. It investigates into the economic attributes of value. It attempts to reduce cost through ...
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...Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING TITLE Value Chain Analysis for Assessing Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA). IMA appreciates the support of The Society of Management Accountants of Canada (SMAC) in helping create this SMA and extends appreciation to Joseph G. San Miguel, of the Naval Postgraduate School, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645-1760 www.imanet.org Special thanks are due to Randoif Holst, SMAC Manager, Management Accounting Guidelines, for his continuing project supervision and to the members of the focus group (including MAC members Dennis Daly and Thomas Huff) for contributing to the improvement of the final document. Copyright © 1996 Institute of Management Accountants All rights reserved Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING Value Chain Analysis for Assessing Competitive Advantage TABLE OF CONTENTS I. II. III. IV. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Value Chain Defined . . . . . . . . . . . . .1 Competitive Advantage and Customer Value . . . . . . . . . . . . . . . . . . .2 V. The Role of the Management Accountant...
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