Alternative Investment Fund for Senior Life Insurance Settlements †Business (600 Level Course)

Alternative Investment Fund for Senior Life Insurance Settlements – Business (600 Level Course) Free Online Research Papers Alternative Investment Fund for Senior Life Insurance Settlements Business (600 Level Course) EXECUTIVE SUMMARY Alternative Investments Fund, LLC (â€Å"The Company†) is seeking to secure funding for the purpose of purchasing life insurance policies. The purpose of this document is to provide potentially interested parties with sufficient information to submit non-binding indications of interest to provide such funding commitments, but does not purport to be all-inclusive or contain all of the information that an interested party may require. Interested parties should conduct their own independent analysis. The information contained herein has been provided by the Company, their respective officers, employees, agents or representatives, or derived from publicly available sources. The Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of this document or the information contained herein – and no legal liability is assumed or implied. Any estimates and opinions have been prepared by the Company’s management and involve subjective judgment and analysis. This document shall not constitute or be construed as an offer to sell or a solicitation of an offer to buy any securities of the Company. The Business The Company was founded to originate and finance the purchase of life insurance settlements in the secondary market. A life insurance settlement involves the transfer of ownership and the change of beneficiary of a life insurance policy in exchange for a lump sum cash payment from the purchaser. Life insurance settlements provide individuals who no longer want or need an existing life insurance policy with the opportunity to sell the policy and receive a cash settlement greater than the policy’s cash surrender value (amount insurance company will pay to cash out the policy). In the case of settlements involving term insurance policies, policy owners receive funds that they never expected to receive during their lifetimes. The policy owner may be planning to surrender the policy for any number of reasons including (i) corporate-owned key-man policies may no longer be needed due to the key-man leaving the business or the business being sold, (ii) insurance policies purchased for estate planning objectives are no longer relevant, (iii) the need for life insurance protection no longer exists du e to beneficiaries being taken care of by other investments or are financially independent or simply that there are no living heirs, (iv) continuing premium payments is no longer desirable, (v) cash from the settlement can be used to purchase new, more appropriate coverage (i.e., Second to Die or Long Term Care), and (vi) personal financial reasons. Senior Life Insurance Settlements are distinguishable from Viatical Settlements that were primarily focused on AIDS victims. Many viewed the viatical business negatively because of the perception that unscrupulous parties were preying on very vulnerable individuals. On the other hand, the Senior Life Insurance Settlement market has been viewed very positively. Typically, the policy size with a Senior Settlement is large and the seller of the policy is affluent and represented by a professional financial advisor. For these reasons, it is generally viewed as business that provides a valuable service – the opportunity to access values previously believed to be inaccessible. For the investor, the value proposition is driven by a few factors. First, the seller of the policy wants liquidity from the policy during his or her lifetime. Another motivation to sell is to eliminate the premiums that must be paid to keep the policy in force. In the process of evaluating the purchase of a life insurance policy, the life expectancy of the seller is a key determinant of the return to the investor. For this reason, every seller must have an evaluation of his or her health. Based on the evaluation (medical underwriting), a life expectancy (ex) is established, which determines the price at which the policy is purchased. In cases where the insured survives longer than the projected life span, the rate of return to an investor decreases. On average, these Senior Settlements are priced to produce a yield in excess of 15% per annum. The quality of the medical underwriting is the critical factor in developing appropriate pricing. Even with perfect underwriting, it is critical for an investor to have a sufficient distribution of lives in the investment pool. The pool should also possess a distribution of medical issues, in order to avoid concentration risk. For investors, life insurance settlements are unique. The returns have no correlation to the stock market or interest rates. Returns are purely a function of the factors discussed above. The Market Life insurance settlements began in the United States only in the last decade. They are now emerging as an asset class based on shear volume potential. The total potential size of the life insurance settlement market is estimated to include approximately $108 billion1 of life insurance in force. Most life insurance settlements have life expectancies ranging from 5 to 13 years, although some may be as short as one year. Demand for the Life Insurance Senior Settlements is already strong and can only grow as knowledge of this financial alternative becomes more mainstream. Currently, there are 23 million1 people in the United States age 65 or older who have life insurance policies in force. Nearly 8% of these policies lapse or are surrendered each year. LIMRA estimates that 97% of all term life insurance products sold in the United States will be lapsed before any death benefits are realized. As more individuals begin to learn that their policies have a value in the secondary marketplace that exceeds the cash surrender value (essentially that there is a better alternative to lapsing or surrendering the policy) – demand is certain to grow. Because the Life Insurance Senior Settlements are still relatively new and unknown (industry estimates suggest approximately 90% of financial planners and an even larger percentage of consumers are not yet aware of the availability of life insurance settlements), it is fair to assume that this market is poised to experience phenomenal growth over the next several years. Recently, the option to sell an unwanted life insurance policy, for a broad variety of financial planning reasons in addition to financial need, has dramatically increased the number of people considering this option. As a result, capital resources available to acquire those policies have been overwhelmed, creating a large backlog of policies in the market. Marketing The potential for a Senior Settlement occurs when the health of an insured has deteriorated to the point that the expected value of the future death benefit, which can be realized under a life insurance policy, significantly exceeds the expected value of the future anticipated premium payments. Historically, most policyholders did not realize that their life insurance policies represented â€Å"hidden assets† which could be used to better achieve their living goals. Transactions generally occur, when the life insurance policy owner works with an insurance agent, financial planner, or other financial advisor (â€Å"settlement broker†) who makes the owner aware that there are options available other than lapsing or surrendering an unneeded life insurance policy. These settlement brokers find the buyers for the life insurance policy and secure the settlement. It is estimated that of the 192,000 life insurance agents and approximately 34,000 certified financial planners in the United States today, only ten percent have working knowledge of Senior Settlements. Therefore, as the population ages and knowledge of Senior Settlements spreads, the potential exists for substantial future growth. Senior Settlements are a new and rapidly growing asset class. While Investment Bankers have viewed Senior Settlements as ideal for candidates for securitizations, the recent genesis of this asset class, taken together with the esoteric nature of the risks associated with projected cash flows and the inherit complexities of any securitization, have made the securitization of Senior Settlements mostly a theoretical exercise. As a result, capital allocations to this market have tended to be lumpy at best. The Company intends to source Senior Life Insurance Settlements in the secondary market from Life Insurance Settlements Companies, which have existing relationships with managing general agents and life insurance agents/brokers active in this market. Management Although the Company will use third parties to perform many functions associated with the evaluation and purchase of the life insurance policies, it will provide oversight of many functions including the following: Insurance Policy Underwriting Medical Underwriting Purchasing Policies Tracking/Servicing Purchased Policies The management team of the Company has substantial expertise in life insurance, actuarial pricing, accounting, taxation, capital markets, and life insurance settlements. Investment Returns A sample of 500 Insured lives was used to determine the expected rates of return for investors, and the volatility of the returns. The Insured lives modeled ranged in ages from 65 to 89, with an average age of 75. The net face amount of policies to be purchased was $453.1 million, and the assumed purchase price was $115.9 million. Under the â€Å"base case† or â€Å"assumed case†, the return to investors was determined to be 19.0%. This anticipated rate of return is consistent with current pricing in the Senior Settlement market. In the assumed case scenario, an investor would recover 100% of the amount invested in 7.46 years. The average ex for the group of Insureds, at the time of the assumed purchase, was 8.428 years. The most significant issue with Senior Settlements is not the return of principal, but instead the duration over which returns will be earned. Therefore, the expected rates of return were calculated using variations in the assumed mortality of the pool of insured lives. Projected cash flows were calculated assuming future premium payments, death benefits and expenses, using mortality rates that vary from the assumed case. Assuming that the actual mortality in all years is 10% less than the expected, the rate of return would decrease to 17.66%, compared to 19.0% in the assumed case. Conversely, if mortality is 10% higher than the assumed case, the rate of return will increase to 20.28%. Extreme cases were also tested. Assuming actual mortality is 33% lower than pricing results in the rate of return decreasing to 14.37%, while the break point is 21.01 years. Assuming mortality is 33% higher than anticipated results in a return of 23.11% and a breakeven period of 5.72 years. The rates of return under these assumptions are reflected in the table below: The extreme mortality variation used a 33% lower mortality rate than assumed and represents two standard deviations in a sample comprised of 500 lives. The probability of the actual mortality rate being less than 33% is therefore approximately 2.5%. Conversely, the probability that mortality would ever exceed 33% above the expected would also equal 2.5%. Industry Regulation As with any insurance transaction, some state Departments of Insurance regulate life insurance settlements. The National Association of Insurance Commissioners (NAIC) adopted model regulation in 1993 when the industry focus was limited to individuals with catastrophic or life threatening illnesses. The Model developed contract, license requirements, and other consumer protections to protect these specific policy sellers. This Model was adopted by only about half the states. As the business has evolved and expanded well beyond the scope of the early regulations, the NAIC and the individual states have modified and expanded statutes and regulations to include a broader definition of the policy seller provide protections to investors in the transactions and formalize the regulatory filing and reporting requirements. Regulatory activity by the NAIC and the states, especially those states that took no action on the original Model, is expected to accelerate as the industry grows. Principals Steven W. Fickes, F.S.A., M.A.A.A Steven is an actuary and has been involved in the insurance industry his entire career. Early in his career, he joined Tillinghast, the largest actuarial consulting firm, where he focused on reinsurance, mergers and acquisitions and taxation. He ultimately was made a Principal and headed the firm’s International Reinsurance and Life and Health Insurance Practices. He later formed his own actuarial practice specializing in innovative, highly structured reinsurance transactions and mergers and acquisitions. His involvement as a consultant on mergers and acquisitions led him to become a partner in a leveraged buyout firm that was involved in the acquisition of 15 insurance companies, with an aggregate value in excess of $1 billion. Steve has also been involved in several successful start-ups including the formation of a life insurance settlements firm. During 1995, he formed a $100 million private equity fund, which ultimately completed two major acquisitions. Prior to starting his own firm, Raedel in 2001, Steve was a partner at Deloitte Touche, where he led the firm’s international actuarial practice. During his tenure at Deloitte he worked with the American Cancer Society in developing a lending program for terminally ill cancer patients collateralized by their life insurance policies. Since resigning from Deloitte Touche, Steve has developed an extremely sophisticated insurance information database that has as its subscribers some the largest insurance companies in the US, major investment banks and mutual funds. At the same time, he has pursued various other entrepreneurial opportunities in the insurance sector. Ransom Jones, C.P.A. Ransom has over 30 years of experience working in the insurance industry with major multi-national companies in various areas including accounting and income tax consulting, asset/liability management, product development, asset securitization, mergers and acquisitions, financing, general management, consulting for troubled insurance companies and developing strategic direction. He has worked at American International Group, Citicorp, Goldman, Sachs Co., and was a partner at KPMG Peat Marwick. He has served as chief financial officer at two publicly traded companies and was president of a group of property and casualty insurance companies. For two years, Ransom worked with a start-up senior settlements company in developing its business plan and identifying financing opportunities. During his career, Mr. Jones has been very active in insurance industry affairs. For three years, he served on the NAIC’s Working Group on Emerging Issues which promulgates insurance regulatory accounting standards. He has served on various other NAIC committees. For three years, he was on the Board of Directors of the National Association of Life Companies Over many years, he has been a frequent speaker and author of articles related to the insurance industry. Research Papers on Alternative Investment Fund for Senior Life Insurance Settlements - Business (600 Level Course)Lifes What IfsMoral and Ethical Issues in Hiring New EmployeesTwilight of the UAWAppeasement Policy Towards the Outbreak of World War 2Incorporating Risk and Uncertainty Factor in CapitalOpen Architechture a white paperAnalysis of Ebay Expanding into AsiaPETSTEL analysis of IndiaBook Review on The Autobiography of Malcolm XRiordan Manufacturing Production Plan

Adding Commas to a Paragraph

Adding Commas to a Paragraph This exercise offers practice in applying the rules for using commas effectively. Before attempting the exercise, you may find it helpful to review this article on comma usage. In the following paragraph, insert commas wherever you think they belong. (Try reading the paragraph aloud: at least in some cases, you should be able to hear where commas are needed.) When you are done, compare your work with the correctly punctuated version of the paragraph on page two. The Least Successful Car In 1957 Ford produced the car of the decadethe Edsel. Half of the models sold proved to be spectacularly defective. If lucky the proud owner of an Edsel could enjoy any or all of the following features: doors that wouldnt close hoods and trunks that wouldnt open batteries that went dead horns that stuck hubcaps that dropped off paint that peeled transmissions that seized up brakes that failed and push buttons that couldnt be pushed even with three people trying. In a stroke of marketing genius the Edsel one of the largest and most lavish cars ever built coincided with the rising public interest in economy cars. As Time magazine reported It was a classic case of the wrong car for the wrong market at the wrong time. Never popular to begin with the Edsel quickly became a national joke. One business writer at the time likened the cars sales graph to an extremely dangerous ski slope. He added that so far as he knew there was only one case of an Edsel ever being stolen. When you are done, compare your work with the correctly punctuated version of the paragraph below The Least Successful Car (Paragraph With Commas Restored) In 1957[,]  Ford produced the car of the decadethe Edsel. Half of the models sold proved to be spectacularly defective. If lucky[,]  the proud owner of an Edsel could enjoy any or all of the following features: doors that wouldnt close[,]  hoods and trunks that wouldnt open[,]  batteries that went dead[,]  horns that stuck[,]  hubcaps that dropped off[,]  paint that peeled[,]  transmissions that seized up[,]  brakes that failed[,]  and push buttons that couldnt be pushed even with three people trying. In a stroke of marketing genius[,]  the Edsel[,]  one of the largest and most lavish cars ever built[,]  coincided with the rising public interest in economy cars. As  Time  magazine reported[,]  It was a classic case of the wrong car for the wrong market at the wrong time. Never popular to begin with[,]  the Edsel quickly became a national joke. One business writer at the time likened the cars sales graph to an extremely dangerous ski slope. He added t hat so far as he knew there was only one case of an Edsel ever being stolen.

More Casino's Means More Gambling Addictions in Florida Research Paper

More Casino's Means More Gambling Addictions in Florida - Research Paper Example According to this advocacy group and other casino opponents, legalizing more resort casinos in Miami and other cities in Florida would not only multiply gambling problems but would also lead to a rise in crime rates in Florida (Randazza, P. 69). The arrival of more casinos and the resultant effects such as crimes and gambling addiction would imply more of taxpayers’ money, about $3 billion in incarceration costs according to the No Casino Advocacy group, would be spent. With the arrival of mega-casinos in Florida, the anti-casino groups feel that Florida laws on gambling need to be changed to reduce the negative impacts of casinos and gambling on the people of Florida. While those supporting the arrival of gambling resorts in Florida tout the casinos’ job-creation potential, the opponents of these casinos emphasize that Florida needs to face the reality of the crimes and other ills that would accompany such initiatives (Vasquez, P. 8). Evidently, the rising numbers of c asinos and resort casinos in Florida have resulted in an increase in the number of gambling problems such as addiction and gambling-related crimes (Randazza, P. 71). This paper thus explores the assertion that the more casinos there are in Florida, the more gambling addiction will be reported. ... In fact, today, Florida is known for sunshine and amazing beaches with hundreds of thousands of international and local visitors making their way to the city’s casinos every day. Besides Miami, the other major towns in Florida in which the number of casinos have noticeably increased in recent times are Tampa, Fort Lauderdale, Daytona Beach, Orlando, and Cape Canaveral. Unfortunately, the Florida casinos are not only famous for their sunshine and sandy beaches; they also offer booming businesses, more so gambling, which has been on the rise as more casinos come up every other day in Florida (The Florida Council of Compulsive Gambling, 2012A, P. 10). In other words, gambling has not only increased in Florida due to the many casinos but the problem of gambling addiction has also become a more serious issue. Gambling Florida has not become a problem to the state government only but parents as well since children have also become addicted to gambling. There are numerous types of ga mbling taking place at the Florida casinos in which people get addicted. These games include the famous table games such as Texas Hold-em poker and blackjack. The other common gambling games in Florida casinos are roulette, cruise ship gambling, land-based gaming, slot machines, and dog-track betting among others (The Florida Council of Compulsive Gambling, 2012b, P. 3). Because of the increasing number of Casinos in Florida and the accompanying gambling problems such as addiction, the Florida Council on Compulsive Gambling has been called to action in recent times, particularly on its help line, which has reported an increase in calls for help. The increase in calls for its help has led the Florida Council on Compulsive Gambling (FCCG) to conclude

Individual report Essay Example | Topics and Well Written Essays - 500 words - 3

Individual report - Essay Example The implication Brain in organization, Gareth Morgan metaphor â€Å"the brain† is very instrumental in highlighting the challenges we faced as an organization. The CEO as manger demonstrated the principal of the brain according Gareth Morgan. The CEO was more of a facilitator, practiced boundary management and more of orchestra1. The metaphor organisms, the organization as machine it visible under the specific goals and objectives. The organization in question has blue prints that specifically form the organizational chart and the team has specific assignments and goals to achieve hence, they are expected to act in a given manner2. The CEO is the coordinator of all the other group members that are assigned duties that rhyme with their experience3. An element of machine is evident in this case as there is the marketing and sales role, finical department and the design department. 1. SimVen virtual organization are an essential learning tool that portray the real business environment. The tool facilitated the CEO with an opportunity to coordinate the group well and make the right decisions that were vital at the right moment and time. SimVen virtual organization creates the different environments that are present in each organization. At one point in the project, the owner of the company was being underpaid. The fact above is evident even in real organizations. 2. The experience of using SimVen virtual organization has been very instrumental in molding the group o the real aspects of an organization. It is clear that when the CEO coordinates well the group in making decisions the results is success. As the brain, SimVen virtual organization tests all the real life aspects of an organization in real life. He should not be the ultimate designer and kill creativity in the organization. 3. Clearly, from SimVen virtual organization, as a group and at individual basis it is clear that the CEO is an important link in any organization. He is expected to be a

Sylvia Plath Essay -- Biography

Sylvia Plath was a troubled writer to say the least, not only did she endure the loss of her father a young age but she later on â€Å"attempted suicide at her home and was hospitalized, where she underwent psychiatric treatment† for her depression (Dunn). Writing primarily as a poet, she only ever wrote a single novel, The Bell Jar. This fictional autobiography â€Å"[chronicles] the circumstances of her mental collapse and subsequent suicide attempt† but from the viewpoint of the fictional protagonist, Esther Greenwood, who suffers the same loss and challenges as Plath (Allen 890). Due to the novel’s strong resemblance to Plath’s own history it was published under the pseudonym â€Å"Victoria Lucas†. In The Bell Jar, Sylvia Plath expresses the themes of alienation and societal pressure on women in the 1950s through symbolism, an unconventional protagonist, and imagery. Through an overwhelming sense of symbolism, the author demonstrates both the separation and pressures that Esther Greenwood goes through. The reoccurring image of a bell jar haunts Esther throughout her story representing both her mental illness and her alienation from the society surrounding her. As Dunn states â€Å"a glass ‘bell jar’ is used to cover and protect laboratory materials. Significantly, a bell jar also allows objects to remain in view.† Much like a scientific specimen, Esther is readily visible to those around her both observation and study. The jar in this case represents her mental instability, which causes her to be isolated from the rest of society and treated abnormally. Furthermore, â€Å"Plath [uses] the bell jar to indicate the circumference of the world of pain and mental suffering Esther Greenwood, the heroine, lives in† (Evans 105). The heroine herself admit... ...scandal that they did in the tabloids and had only seen it as an immediate means out, a way to escape. Rich in descriptive phrases and words this imagery contributes to the themes. From headlines to cadavers, bell jars to mental illnesses, and a subdued matron to a rebellious young lady, this novel hosts the two overarching themes of alienation and constraints on women in the 1950s. Esther Greenwood separates herself from nearly all of society and simultaneously must overcome the strictures that are set upon her and hinder her from the future she aspires towards. Through extensive imagery, symbolism, and characterization Sylvia Plath delves into how people strive for perfection and acceptance through social standards and additionally how those that do not comply completely with them are alienated from the group of society, either by themselves or by the group.

Food Procurement Essay

Mang Inasal Chicken BBQ is the Philippine’s fastest growing barbeque fast food chain, serving chicken, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City. Currently, there were 445 branches nationwide and with over 10,000 employees system wide. Mang Inasal is doing its share in alleviating the unemployment burden of the country. The presence of every Mang Inasal in a certain area provides not only employment but also opportunities to community members including suppliers of kalamansi, charcoal, banana leaves, vegetables, bamboo sticks, and other ingredients. It also indirectly gives income-generating activities to many. In keeping with the mission to consistently provide its customers a great Pinoy dining experience, Mang Inasal, the Philippines’ fastest growing barbecue fast food chain branches out again, this time in Turbina, Calamba, Laguna adding to its more than 300 branches nationwide. Marco Sison and Nonoy Zuà ±iga graced the opening last Nov. 19. The Brothers Band provided the entertainment and back up. First established in Iloilo City on December 12, 2003 by Edgar â€Å"Injap† Sia serving grilled chicken, pork barbecue and other Filipino favorites, Mang Inasal Turbina in Calamba is a franchise owned by Ikemada Resources, Inc., a holding company, which aims to have ownership of different outlets/branches in the food industry. Ikemada’s choice of Turbina in Calamba as the next site for Mang Inasal is its strategic location which is between the two bus terminals ferrying passengers from Manila to the southern provinces of Quezon, Batangas, Bicol and Mindoro. Turbina is ju st 30-minutes’ drive from Makati. This is also in line with Mang Inasal’s vision to be the preferred quick service restaurant of every Pinoy everywhere. Mang Inasal endeavors to adhere to elements that bear a distinctly Pinoy stamp-grilling with charcoal, rice wrapped in banana leaves, marinade concocted out of local spices and herbs, bamboo sticks for skewers, and the ambience that encourages kinamot (the Ilonggo term in eating with the hands) whenever chicken inasal is served. All these evoke a rush of nostalgia for tradition, culture, and most of all, home. Grilled chicken isn’t the only fare that Mang Inasal offers. They have Sisig, Grilled Pork, Bangus, Chicken Feet, Wings, Pecho, Liver and Baticulon, Fish and Pork Sinigang, Batchoy, Bihon, Pancit Molo, Pinoy Burger, Pinoy Mirienda, Pinoy Panamis, Pinoy Pampagana, and more. Mang Inasal’s Vision is to be the preferred quick service restaurant of every pinoy everywhere. Their mission is to consistently provide their customers a great pinoy dining experience. Objectives of the Study -To determine the purchasing and ordering procedures of Mang Inasal, Petron Turbina. -To identify the receiving procedures of Mang Inasal, Petron Turbina. -To determine the storage procedures of Mang Inasal, Petron Turbina. -To identify the inventory procedures of Mang Inasal, Petron Turbina. -To know the sanitation procedures of Mang Inasal, PetronTurbina. Significance of the Study This study of the food procurement in Mang Inasal Chicken BBQ including The actual food purchasing, receiving, storing, inventory and issuing procedures will serve as a reference to the students researching and studying about food procurement of a food establishment. This will also serve as a guide for other establishments if they are following the right procedures in food procurement. This study will help inform the consumers if this food establishment is safe to eat from. Lastly, the study will help other future researchers if the traditional way of these activities were still practiced today. Methodology Research Locale Mang Inasal chicken BBQ Corporate Office (Head Office) is located 2316 Aurora Boulevard, Tramo St., Pasay City. Mang Inasal is operating at the following areas: Bacolod, Iloilo, Roxas, Laguna, Bicutan, Metro Manila, Davao, Cagayan De Oro, Koronadal, Cavite, Cebu, Boracay, Baguio, Pangasinan, Tuguegarao, La Union, Pampanga, Bulacan, Mindoro, Agusan, Zamboanga, Ozamiz, Iligan, Surigao, General Santos, Pagadian, Batangas, Lucena, Naga City, Davao del Norte, Davao del Sur, Tagaytay, Palawan, Tacloban, Ilocos Sur and Tarlac. Mang Inasal is targeting to open 500 stores by 2012. The researchers focused on Mang Inasal Chicken BBQ located near PETRON (Gasoline Station) in Turbina, Calamba City, Laguna which was opened last November 19, 2011 and the opening was graced by Nonoy Zuà ±iga and Marco Sison. This franchise branch is owned by Ikemada Resources Inc., a holding company. Research Design The descriptive method of research was used for this study. To define the descriptive type of research, Creswell (1994) stated that the descriptive method of research is to gather information about the present existing condition. The emphasis is on describing rather than on judging or interpreting. The aim of descriptive research is to verify formulated hypotheses that refer to the present situation in order to elucidate it. The descriptive approach is quick and practical in terms of the financial aspect. Moreover, this method allows a flexible approach, thus when important new issues and questions arise during the duration of the study, further investigation may be conducted. The researcher opted to integrate the qualitative approach in this study due to its significant advantages. The use of qualitative data gathering method is advantageous as they are more open to changes and refinement of research ideas as the study progresses; this implies that qualitative data gathering tools are highly flexible. Moreover, no manipulation of the research setting is necessary with this method; rather than employ various research controls such as in experimental approaches, the qualitative data gathering methods are only centered on understanding the occurring phenomena in their naturally occurring states. Aside from these advantages, researchers use qualitative data-gathering tools as some previous researchers believe that qualitative data are particularly attractive as they provide rich and well-grounded descriptions and explanations as well as unforeseen findings for new theory construction. One of the notable strengths of the qualitative instruments is that they evoke a more realistic feeling of the research setting which cannot be obtained from statistical analysis and numerical data utilized through quantitative means. These data collection methods allow flexibility in conducting data gathering, research analysis and interpretation of gathered information. In addition, qualitative method allows the presentation of the phenomenon being investigated in a more holistic view. Research Instruments a. Interview An interview can be undertaken to collect data, there are two types of interviews and they include face to face interview and telephone interview, a face to face interview will involve collection of data whereby the respondent and research administrator sit together, a telephone interview on the other hand will involve calling the respondent and answers obtained over the phone, a face to face interview is considered more expensive given that the research administrator may be required to travel and also this process may be time consuming. (Fowler, 2008) Interview are further subdivided into structured and unstructured interview, structured interview involves setting up a set of questions that will be administered while unstructured involve asking the respondent to elaborate on certain issues. (Fowler, 2008) b. Observation Observation is another method of collecting data, this method involves observing participants and recording data, for example collecting data on the number of vehicles that use a certain highway will involve the observation method of collecting data. (Fowler, 2008) c. Analyzing documents This is secondary data collection method that involves collecting data from published documents example journals and a book, other sources include online databases which are relatively cheap methods of obtaining data, this method is preferred given that it is less time consuming and also less costly. This method however have a disadvantage given that it may given rise to accuracy problems, data accuracy will depend on the purpose of the data collected and that there may rise problem when data may unavailable and therefore a researcher will be required to use primary sources of data which include interview and questionnaires. (Fowler, 2008) When designing the research data collection methods it is important that the researcher takes into consideration the respondent attitude, data collection methods such as questionnaires should be designed taking into consideration the reaction of the respondents when a certain question is directed to them, also the research questions should be clear and simple and should not be leading questions. The other factor that should be taken into consideration is the cost, when selecting the data collection method one should take into consideration the cost associated with that method and whether there exist ways to reduce such costs, face to face interview sometimes may be costly and time consuming and therefore questionnaires that are relatively cheap may be preferred, also the questionnaires may be more appropriate given that they are less time consuming given that a lot of data can be collected at once, for example a study that involves participants from different regions and the respondent sends the questionnaires to the respondents. (Fowler, 2008) Data Gathering Procedures The researchers used interview and guide questions to gather the needed information. (See Appendix A) Key Informants The researchers interviewed Mr. Jayson Pizarra, the former manager of Mang Inasal – Turbina, and Ms. Mary Ann Papio, the present manager. The researchers have undergone two interviews with each manager. The first interview was done with the former manager, Mr. Pizarra, in January 2012. The second interview was done with the present manager, Ms. Papio last March 12, 2012 at Mang Inasal – Turbina. The researchers wished to speak with their purchasing agent to gather the correct information because food procurement is handled mostly by the purchasing personnel of a food establishment; unfortunately, Mang Inasal doesn’t have purchasing personnel. The managers and assistant managers act as the purchasing personnel and handle the food procurement of their establishment.

Essay on Corporate Social Responsibility for Ikea - 965 Words

According, to the European Commission (2013), Corporate Social Responsibility and competitiveness link in the way that it brings ‘benefits in terms of risk management, cost savings and access to capital’ (European Commission, 2013). However Milton Freidman (1970) defines CSR within his essay in the New York Times as ‘The Social Responsibility of Business Is to Increase Its Profits’. He also states that businesses such as IKEA should ‘make as much money as possible, while conforming to the basic rules of society, both those embodied in the law and those embodied in ethical custom’ (May et al., 2007). It is evidenced that Friedman’s definition has conflicted with (Kotler and Lee, 2005) who delineate CSR as ‘commitment to improve well-being†¦show more content†¦Therefore it reveals that as a substitute for connecting relationships with smaller suppliers, IKEA actively engages and maintains long-term working relationships with their diverse suppliers. It is made clear that IKEA centres its focus on purchasing from outside (Anderson and Larsen, 2009). Assisting suppliers helps motivate them whilst becoming more responsible for ‘people and the environment’ (Inter IKEA Systems B.V, 2012g). CSR can have positive effects upon IKEA (Wang, 2008) in terms of stakeholders needs being satisfied and the public believing in the company due to environmentally friendly treatment. These factors will help IKEA differentiate from Argos and BQ. Blowfield and Murray (2008) mention that the increase in CSR public awareness, has led to businesses understanding that CSR plays a key role in their overall strategy and growth. Consequently, in order to strengthen the supplier working relationship, IKEA has transformed from demanding ‘a certain level of quality, service, price and environmental and social responsibility’ to cultivating these factors (Anderson and Larsen, 2009). The benefit of the transformational change for IKEA is that cost savings are attained and there is appropriate conditions to help produce proficiently. The IKEA Way delineates what supplier’s expectations are of IKEA and vice versa in terms of the environment, child labour and working conditions (Anderson andShow MoreRelatedSustainability and Corporate Social Responsibility at IKEA928 Words   |  4 Pagesinfluenced by the demands of customers and stakeholders. The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. Going green or being eco-friendly is one such demand. IKEA is among the top sustainability leaders in the Scandinavian region. The company is able to confidently respond to questions of responsibility raised by consumers, employees, and investors regarding eco-friendly productsRead MoreThe Importance Of Corporate Social Responsibility And Ikea1695 Words   |  7 PagesThe Importance of Corporate Social Responsibility to IKEA This essay is about the importance of Corporate Social Responsibility (CSR) to IKEA. Corporate Social Responsibility is a broad subject comprising of many definitions. It can be defined as, ‘the social responsibility of a business that encompasses the economic, legal, ethical and discretionary expectations that society has of the organization at a given point in time’ (Carroll, 1979). Expectations of society have been the key driver forRead MoreCorporate Social and Environmental Responsibility -- a Short Report on Ikea B.V2346 Words   |  10 PagesCorporate Social and Environmental Responsibility A Short Report on IKEA B.V Written By: Syed Rehan Rizvi February 16, 2010 IKEA’s Social and Environmental Initiatives Introduction IKEA is one of the largest European home furnishing retailers established in 1943. It has more than 300 stores in 37 countries with a business turnover of approx. 22,7 billion Euros in 2009 and an approximate direct workforce of 127,800 employees all over the world. IKEA’s retail concept is based on sellingRead MoreIKEA Global Sourcing Challenge: Indian Rugs and Child Labor1176 Words   |  5 PagesProposal Case: IKEA Global Sourcing Challenge: Indian Rugs and Child Labor Summary In this case, it is known that IKEA s procurement model is the mode of global sourcing. IKEA products are shipped to the 26 distribution centres from the trade area after procurement, and then delivered to the shopping malls in the world. IKEA s procurement philosophy and assessment of suppliers mainly include four aspects: continuous price improvement; strict supplier performance and service levels;Read MoreIkea Sustainability Responsibility Strategy Of Ikea1103 Words   |  5 Pages3.2 IKEA Governance IKEA sustainability responsibility strategy consist of performance indicators and targets to be achieved by 2020. These responsibilities and values consist of innovation, enthusiasm and company togetherness which aims to meet the future consumer demands with increasing prices of raw materials whilst maintaining the IKEA affordable prices The three main focus of IKEA strategic responsibility is: †¢ Inspiring customers to have a sustainable living life †¢ Striving to have long-termRead MoreCase Study : Supply Chain Business Operations1549 Words   |  7 PagesBusiness Operations - IKEA Members: 1.Williams, Lisa 300-810-065 Date submitted: August 16th 2015 â€Æ' IKEAS Corporate Social Responsibility Strategy IKEA’s social responsibility and sustainability is continuing to grow and progress according to Chief Sustainability Officer, Steve Howard. IKEA wants their business to have a positive impact on the world so they have implemented a strategy called the People Planet Positive strategy which focuses on 3 areas (IKEA Group, 2014). The firstRead MoreIkea’s Global Sourcing Challenge: Indian Rugs and Child Labor1548 Words   |  7 PagesOtis West Tuesday, November 6, 2012 IKEA is the world’s largest furniture store that offers well-designed, functional home furnishing products at low prices. The store offers home furnishings to meet the needs of everyone. The company vision is to create a better everyday life for the many people. Ikea is able to back their vision with their products and prices. In additional to Ikea offering great products, the company also believes in taking responsibility for people and the environment as aRead MoreThe Key Ingredients Between A Successful Company And A Non Successful One1650 Words   |  7 Pagesthey are in. Ikea, a global furniture company, has created a strong marketing strategy along with a strong marketing planning process that has help their brand a lot. They have really strong brand recognition, loyal customers, and are increasingly growing. Their marketing efforts have truly help set them apart from their competitors. In other to have a great marketing strategy, they developed their marketing mix, which is constituted into the following: a) Product – Creates value Ikea offers a wideRead MoreOutline Of A Business On Ikea1094 Words   |  5 Pages IKEA Aimee Valdes Palm Beach State College Chapter 1: Research Proposal and Introduction Introduction Corporate name, founding date, founding leaders. IKEA, one of the most successful retailers in the world, was established by Ingvar Kamprad, in 1943, in Sweden (Hill, Jones Schilling, 2015). Essential events and critical incidents. In 1948, after adding furniture to IKEA’s product line Kamprad published the first catalog which is distributed free to this day (Hill et.alRead MoreIKEA Case Study Pirsoi Teodora C11572 Words   |  7 PagesIKEA – CASE STUDY Is IKEA’s success sustainable? 1. List IKEA’s external and internal challenges. Looking at IKEA’s challenges, which do you think pose the greatest threats? Why? How would you address the challenges? External challenges Opening new stores to drive future growth Finding new sources of supply to support more store openings Find suppliers to be a strategic fit with its highly efficient operations Given the issue of deforestation and the link to global warming, IKEA would need to