Update

Updates

By Kristine Kathryn Rush. Excerpt

Interviewing people. Getting in the way of her updates. She felt a tug – a pull she hadn’t felt in a long time. The calls frightened her, and she liked Holly, but for ten years Marisa had lived for the shows. They had to continue as well.

She left the booth without saying anything. The double doors closed behind her. Kamal was still at the reception desk, looking flustered. A policeman, short and a bit stout, stood at the top of the stairs.

Marisa ignored him and ran down the steps. Sure enough, three officers were in the newsroom, and no one was working.

“I’m sorry,” she said, “but we have a newscast to put on”.

One of the officers turned around. He was slender, with dark eyes and a sharp chin. He held his cap under his arm, revealing tousled black hair. “You must be Marisa Turner.”

“Yes,” she said. “Look, I’m as worried about this as anyone, but -”

“I understand you took the first call.”

“Yes, but -”

“When was this?”

Updates. Photo by Elena

She straightened. She wouldn’t get sidelined. “I’ll answer questions in a moment. But I need to keep order here, too. You told lackburn to proceed as if nothing were happening. The only way we can do that is to put on a newscast in –” she glanced at the clock” – forty minutes.

“I apprreciate your problem, Ms. Turner, but -”

“No. I don’t think you do. Just give me a moment, and then I’ll talk to you.” She gave instructions in rapid fire, afraid that this officer would interrupt her, that the police would shut them down entirely. Joseph was to go over copy if she were gone; Naomi would double-check the studio; Rob would talk to Douglas at City Hall. Everyone else should continue their jobs, make sure the updates were finished and no stories were repeated. “And for godsakes, make sure Kamal knows the mayor is due at five past the hour.”

They all nodded, even one of the officers, which made her realize just how strident her voice had become. She turned to the officer who had spoken to her.

“All right,” she said, “Now I’ll answer questions, but in the office, not here.”

He raised an eyebrow, but followed her. The office wasn’t really as office at all but a number of desks placed at random in the concrete basement along with boxes of old aircheck tapes and file cabinets used as room dividers. The are was dark, the only illumination coming from the stair lights and the thin light from the newsroom.

She hit a switch, and the fluorescents fluttered on. The place looked almost normal. There was never any daylight here. In the winter she entered the station in the dark and emerged in the dark, as if she were living in a night that would never ever end.

Published in September 2000, Alfred Hitchcock’s Mystery magazine

High Park: Discovery Walks

Toronto High Park

Welcome to one of Toronto’s largest and best known parks. High Park contains 399 acres of rolling hills, creeks, woodlands, ravines and one of the City’s largest ponds, Grenadier Pond.

High Park exists today as a result of the foresight and generosity of the original owner of the park’s central portion, John Howard, a former City Surveyor and Architect and his wife, Jemima. In 1873, Howard deeded the land to the City of Toronto, “to be forever held as a public park for the free use and enjoyment of the people of Toronto”. Their house, Colborne Lodge, now a public museum still stands in the south end of the park.

Two loonies in High Park. Photo: Elena

The Oak Woodland Communities of High Park

High Park contains approximately 110 acres of remnant oak woodland communities which were one segment on the sand plains of the Great Lakes. Today less than 0,01 percent of these oak woodland remain in southern Ontario. The large Black Oak trees (Quercus velutina) and many other plants, wildflowers, birds and insects dependent on these communities for their habitat are registered to be provincially rare by the Ministry of Natural Resources. Black Oak, found on dry woody sites throughout the southern United States, is at the northern limit of its natural distribution in High Park. Extensive development of the Great Lakes region has all but eliminated these rare and endangered oak woodland communities.

Western Ravines and Beaches: Follow scenic footpaths and a beach boardwalk. Experience natural ponds and marshes, oak woodlands and lakeshore parks.

Community involvement

The involvement of park users and residents living near the High Park has been an important part of the protection and management of High Park. The City of Toronto created the High Park Citizens Advisory Council (HPCAC) in 1993. This group of interested citizens volunteers their time to help make High Park a better place for all. The purpose of the group is to provide Toronto Parks and Recreation Division with an ongoing source of advice and assistance in all matters concerning High Park.

Volunteers from this committee are involved in a number of activities including the restoration of native park vegetation, educational programs on park ecosystems for children, park nature walks, public safety and transportation. Everyone is invited to obtain more information about such activities or to become involved, for this visit their web site at highpark.org.

One of Metropolitan Toronto`s most significant natural areas, High Park is noteworthy for its regionally rare vegetation and associated wildlife.

Keep in Mind

A little courtesy can go a long way. Each year, over one million people visit High Park. Consider the comfort of others when you use the park and tread softly in the natural areas. Exploring the ravine slopes by foot or mountain bicycle destroys plants and their roots, which hold soil in place, and leaves the slopes prone to collapse from rainfall. In order to preserve these fragile and irreplaceable environments, pleas follow these simple rules so that their unique beauty may be enjoyed by generations to come:

• Please stay on the main trails (especially in the ravine areas)
• Cycle only on the paved roadways
• Removal of any material in prohibited (wood, leaves, flowers, acorns, seeds, fungi, etc.)
• Keep your dog on a leash (except in designated off-leash areas)
• Put your litter in bins or take it with you.

Enjoy the park, but be aware of your surroundings, especially after dark. Keep the park safe for yourself and others. Let the authorities know about any suspicious activity. Dial 911 for emergency assistance or call the Toronto Police at 416-808-2222. Contact Toronto Parks at 416-392-1111 or 416-392-7251.

High Park Sakura in Spring. Enjoy your walk and come back soon. Photo: Elena

Public Transit

By Subway the closest stations are High Park at High Park Avenue and Bloor Street West, and Keele at Parkside Drive and Bloor Street West on the Bloor-Danforth Line.

By Streetcar: Route 506 Carlton streetcars enter the park at the junction of Parkside Drive and Howard Park Avenue (24 hours a day).

Route 501 Queen streetcars, south of the park along the Queensway at Parkside Drive, Colborne Drive and Ellis Avenue (24 hours a day).

High Park: Discovery Walks

Western Ravines and Beaches

Follow scenic footpaths and a beach boardwalk. Experience natural ponds and marshes, oak woodlands and lakeshore parks.

One of Metropolitan Toronto’s most significant and natural areas, High Park is noteworthy for the regionally rare vegetation and associated wildlife.

The park contains Toronto’s largest pond and approximately 110 acres of remnant oak woodland communities, once common on the Great Lakes sand plains. Its well drained acid sand supports prairies and savannah vegetation, characteristic of 4,000 years ago, when the area was warmer and drier.

The Beach. The High Park contains Toronto’s largest pond. Photo: Elena

The City of Toronto has established many parks facilities over the past years, including Hillside Gardens, a swimming pool, tennis courts, field houses and an outdoor ice rink.

For more information on area history, inquire at the Runnymede Branch of the Toronto Public Library. For more information on parks and parks programs please call 416-192-1111.

Cherry in blossom. Cherry in the park. Photo: Elena

High Park: West Ravine Nature Trails

On the West Ravine Nature Trails of the High Park you will see examples of remnant oak woodland communities on the upland slopes and locally significant wetland communities within and surrounding Grenadier Pond.

These plant communities offer the opportunity to view many rare species of plants and wildflowers including Black Oak, Wild Lupine, Cup-plant and Sweet Flag. They also provide habitat for wildlife including birds, animals, fish and insects.

There is no provision for lighting on the nature trails. These trails are intended for daytime use only. The High Park administration recommends that you enjoy secluded areas in the company of friends.

There are different levels of difficulty: from Asphalt Path (easy, level terrain) to Woodchip Path (moderately slopped terrain) and Footpath (not maintained).

Grenadier Pond. Photo: Megan Jorgensen (Elena)

Please help the High Park maintain its unique natural resources by observing the following guidelines:

Grenadier Pond. Photo by Elena

• Stay on the designated trails; these trails are covered with wood chips
• Leave plants and wildlife for others to enjoy
• Do not ride bicycles through the nature trails
• Put litter in the bins provided.

Sakura in blossom in High Park. Photo: Elena

Please help the High Park maintain its unique natural resources by observing the following guidelines: Stay on the designated trails; these trails are covered with wood chips. Leave plants and wildlife for others to enjoy. Do not ride bicycles through the nature trails. Put litter in the bins provided.

Succeeding in E-Business

Succeeding in E-Business

Economics is certainly a dynamic social science. Industry, and the way people do business, keeps changing with the times. For example, only in the last thousands of years, most societies in the world transitioned from a barter economy to one based on money. Money became a medium of exchange, and a repository of value, when centuries ago the first bankers would give notes in exchange of gold they kept. Today, private and central banking are the standard in most countries.

Clearly, another major development in economic history has been the Industrial Revolution, with the invention of electricity and machinery. One may argue that the Internet, together with its online transactions, social media and entirely new elements such as the “bitcoin”, has transformed commerce once again on an international scale.

So who succeeds in business?

Successful entrepreneurs share many qualities with each other. For example, they say the spirit of entrepreneurship is hardy, that such individuals usually react to challenges by trying harder rather than by giving up. When the going gets though – the though get going, as the saying goes…

Fear of failure has stopped many a potential successful businessman, or businesswoman, from pursuing their dreams and realizing their full potential. However, as another saying has it, if you try – then you already have a better chance of succeeding than the person who shies away from difficulties, or even opportunities.

At the end of the day, fear is an emotion. Fear is largely considered a negative emotion and is regulated by the amygdala (a brain structure). Fear is different from anxiety in that anxiety means fearing something unconfirmed, while fear implies a real threat. Still, it remains the result of neurons releasing neurotransmitters into synapses…

Michel love (lettering in the sky). Everyone can succeed in business. Photo by Elena

Financial Econometric Theory

Financial Econometric Theory

Ideally mathematical or statistical models could predict the behavior of economic and financial phenomena such as market fluctuations. For example, option prices can be calculated using fast Fourier Transform (FFT). Some of the most commonly encountered theoretical concepts in econometric research are outlined below.

Random Walk, ARCH & GARCH. The Random Walk Hypothesis refers to the stochastic (random, non-deterministic) behavior of stock, where no point can be predicted. The scenario is changed with the autoregressive conditional heteroskedasticity (ARCH) model, and its generalized substitute, GARCH. Both concepts account for volatility.

White’s test of heteroskedasticity elucidates the position of residual variance of a variable in a regression model; if the position is constant it is called homoscedasticity. The GARCH model can be used once homoscedasticity is ruled out.

Skedastic function is of interest to mesoeconomists. Mesoeconomics is a new and debated arrival, reserved for items that fail to be easily categorized as pertaining to macro- or microeconomics.

Black Sholes Model. The item would be impossible to explain without mentioning the continuous hedging argument, Girsanov’s Theorem pricing kernel, one-factor Cox-Ingersoll-Ross (CIR) model interest rates, and others, which would fall outside desired conciseness limits. The Black Sholes formula is illustrious. A corresponding option calculator, similar to a mortgage calculator, is easily found online.

It's nice to take a nap after many hours spent in learning the financial economeetric theory. Photo by Elena

Levy Processes. Geometric Brownian motion is a Levy process that was initially intended as a stock price model (Engle, 2001). Levy processes are computational tools to determine price dynamics. Raible (1998) shows exponential Levy process modeling stock price. In the Levy term structure model, term structure refers to the relationship between a bond’s maturity date and the interest rate.

Method-of-Moment. Generalized Methods-of-Moment (GMM) is a reliable method-of-moment based parameters estimation procedure. Maximum Likelihood Estimation (MLE), Quasi-Maximum Likelihood Estimator (QMLE), Efficient Methods-of-Moment (EMM) in addition to Bayesian and adaptive, are all estimation procedures.

CAPM. The Capital-Asset Pricing Model (CAPM) appears eminently in the accounting and financial industries. The CAPM abbreviation is sometimes confused with the Certified Associate in Project Management (also CAPM) certification.

MCMC. Markov Chain Monte Carlo (MCMC) simulation; Markov process. Andrey Markov was a Russian mathematician in the late 1800s – early 1900s. The Monte Carlo method was named after the celebrated Monte Carlo casino. The integration method and study are used to calculate continuous time asset pricing models, to cite an illustration.

Clifford-Hammersley or Hammersley-Clifford theorem, has nearly stole the show as far as financial estimations and predictions go. Authors with reflective names derived the theorem based on the positivity condition. The use is widespread: graphical, spatial models, MCMC, point processes, spatial statistics such as quantitative geography and topographical analysis.

Distributions and methods can be paparametric, semiparametric as well as nonparametric, characteristic criteria apply. Hong & Nekipelov (2010) derive the semiparametric efficiency bound under the monotonicity assumption. The article is rendered available by the open access journal Quantitative Economics and The Econometric Society.

Lastly, seriation plays an important role in statistical analysis. In finance, financial time series often come in handy in elucidating behavior of the stock market over several decades.

References:

    Engle, R. (2001). Financial econometrics – A new discipline with new methods. Journal of Econometrics, 100 (1): 53-56.

    Geweke, J. & Zhou, G. (1996). Measuring the pricing error of the arbitrage pricing theory. The Review of Financial Studies, 9 (2): 557-587.

    Hong, H. & Nekipelov, D. (2010). Semiparametric efficiency in nonleanar LATE models. Quantitative Economics, 1: 279-304.

    Raible, S. (1998). Levy processes in finance: Theory, numerics, and empirical facts. PhD Thesis. Mathematics Faculty, Freiburg University, Freiburg.

Brokerage

Brokerage

The word brokerage usually refers to a brokerage firm or a broker, a person who acts as an intermediary between buyer and seller. Theoretically, a matchmaker in marriage arrangements is also a middleman, just as a real estate agent or the traditional stock market broker. Online brokerage has gained in prominence over the years. Broker services embody the principle-agent relationship and customarily entail a commission.

The principle-agent relationship refers to the fact that the principle and agent fail to necessarily share the same interests. In the corporate world, the problem may arise if a given manager or even CEO (Chief Executive Officer) acts in a way that fails to benefit the owners (shareholders). In real estate, the dilemma would arise if a realtor wants to sell a property fast and thus at a lower price, while the proprietor is interested in a higher selling price despite the time that it may take.

In Quebec, some of the main real estate agencies are Remax, Royal LePage, La Capitale and Groupe Immobilier Londono. Condominiums, houses and other properties can also be sold by the owner him or herself, using Proprio Direct. The commission charged ranges from approximately 4 to 7% depending on the agent. Although some commercial properties can be found in regular MLS listings (sponsored by the Canadian Real Estate Association), Quebec Commerce specializes in buying and selling of businesses in the province.

Chen & Hitt (2002) examined the switching costs and ability to retain customers associated with diverse online brokerage firms. The importance of the inquiry is underscored with the importance that customer retention has in the contemporary, highly competitive business world. The authors found that firms differed considerably, but that service quality and product variety helped businesses retain clients and create brand loyalty in their study.

It's hard to find a good broker. Photo : Elena

Benjamin et al. (2005) covered 1,700 observations to establish the liaison linking Internet usage to residential brokerage. The analysts discovered that with greater Internet use, both gross and net profits were larger, while net margin was smaller. In their sample, online presence was also positively associated with consumer affiliation.

Womack (1996) wonders whether brokerage analysts’ recommendations in fact serve a positive, constructive function. He concludes that security analysts are exceptionally good at timing the market and picking stock. However, there appears to be a post-event discrepancy between pre-recommendation and actual values in pricing.

Finally, in a review article by Yavas (1996), brokerage literature is decorticated and future research suggested. For example, Walrasian auctioneer (perfect competition where traders can sell and buy any quantity at market price) is essential to achieve efficient market allocation. However, the author explains that the argument rests on the perfect information premise, which apparently rarely holds in the housing and other markets.

References:

    Benjamin, J. D., Chinloy, P., Jud, G. D. & Winkler, D. T. (2005). Technology and real estate brokerage firm financial performance. Journal of Real Estate Research, 27 (4): 409-426.

    Chen, P-Y. (S) & Hitt, L. M. (2002). Measuring switching costs and determinats of customer retention in Internet-Enabled Businesses: A study of the online brokerage industry. Information Systems Research, 13 (3): 255-274.

    Womack, K. L. (1996). Do brokerage analysts’ recommendations have investment value? The Journal of Finance, 51 (1): 137-167.

    Yavas, A. (1994). Economics of brokerage: An overview. Journal of Real Estate Literature, 2 (2): 169-195.

Behavioral Finance

Behavioral Finance

Financial theory usually rests on the assumption that individuals are rational, however this fails to always be the case in real life. The preceding statement is the realm of behavioral finance, a field that studies how irrationality influences the financial world, outlined in a paper by Barberis & Thaler (2003).

The main tenet of the limits of arbitrage assertion is that in real life markets, there are both rational and irrational players. Therefore, irrationality influences outcomes, such as prices, despite what traditional financial models have postulated.

The traditional efficient markets hypothesis (EMH) states that prices will reflect the true value of products, behavioral finance counters that even if some shares are under- or overpriced, investors who notice it may be unable to correct the situation as would be expected under the EMH. The situation is complicated further by the fact that most investors have professionals manage their money for them.

Furthermore, the role of psychology becomes evident as soon as one understands the impact that people’s preconceptions have in matters related to financial economics. The following concepts recurrently cloud people’s judgments: wishful thinking, overconfidence and representativeness. Representativeness can be seen in the situation proposed by Kahneman & Tversky (1974). The author of the present text has simplified and altered their setting, but tried to keep the basic idea intact. Given the description below, please choose Kesha’s likely occupation:

Kesha is artistic, majored in fine arts, and strongly believes in the end of the world in 2012 caused by the mysterious planet X or Nibiru (imagine the year is 2111). What does Kesha do for a living?

a.    fortune teller

b.    grocery store cashier

Psychology is defined as the scientific study of the mind and behavior. Image : © Megan Jorgensen (Elena)

Many respondents will choose ‘a’ despite the fact that statistically speaking, ‘b’ is much more likely to hold, since very few persons hold jobs as fortune tellers as opposed to grocery store cashiers. Such a failure to weigh probabilities is called the sample size neglect, but may also be explained by a hasty jump to conclusions.

An even more rudimentary mistake is the gambler’s fallacy, the irrational belief that a randomly determined streak of losses must be followed by a win. From probability theory, one knows that a fair coin tossed five times with the same result of tails each time, still has the same 50% chance of exhibiting tails.

Other cognitive biases are anchoring and belief perseverance. People tend to seek familiarity, and when in doubt, find an anchor, staying close to, or within a comfortable range of, some predetermined or fortuitous value or number. Belief perseverance simply means that the human mind often clings to its beliefs in spite of contradictory evidence.

References:

    Barberis, N. & Thaler, R. (2003). Chapter 18: A survey of behavioral finance. Handbook of the Economics of Finance, 1(2): 1053-1128.

    Kahneman, D. & Tversky, A. (1974).  Judgment under uncertainty: Heuristics and biases. Science, 185 (September): 1124-1131.

Marketing

Marketing

The purpose of the present business essay is to discuss fundamentals of marketing. As mentioned in previous posts, a future accountant must take several courses in order to complete all the requirements for a Bachelor of Commerce (BComm) or Bachelor of Business Administration (BBA) program. Introductory courses cover related subjects, such as finance, accounting, statistics and marketing, to name a few.

Introduction to Marketing covers fundamental concepts such as the marketing mix (price, product, place and promotion) and advertising basics. However, marketing is not only about sales and advertisement, and includes many other areas.

Isolement. Win lose situations may be zero-sum games. Image: Megan Jorgensen (Elena)

Thus, to remain competitive, a firm must offer customers a product they value. Still, pricing a product depends on the nature of the offering. For instance, a luxury item, such as a Prada bag or a pair of Fendi shoes, may be priced well above available quality bags and shoes, but the designer premium is reflected in the prestige, status or fashion statement conveyed by the brand. Also, professional marketers emphasize that it is impossible to generate consumer needs, only to shape wants. After all, an individual may simply prefer less flashy (and much less expensive!) items, regardless of fashion trends.

Product life-cycle is also covered among the basics of Marketing 101. To illustrate, a product at maturity must add value in order to remain competitive, although what is perceived as valuable to the customer may differ from what the marketer sees as desirable features. Therefore, at least from a marketer’s perspective, beauty truly is in the eye of the beholder… Thus, the aim of the present paper was to discuss marketing at an introductory level.

Instead of naming the fields where they are used, it would be more intriguing to try to name a discipline without theories. The feat is impossible since a discipline is by definition full of them; an ideology is a collection of related theories. But what about the real world, where can the aforementioned be applied?

Individual fields such as marketing have their own managerial framework. Gummesson (2002) discusses marketing managerial theory.

An interesting alternative to the know what, know how and know why is presented. The Vedic variant divides knowledge into the methodology, researcher and result. The author also recounts personally experiencing the inaccuracy of marketing college and university material in depicting the non-scholastic world, and even casts doubt on the peer-review shortcomings of certain publications.

Nepotism and in-group favouritism have been encountered. General marketing theory appears to be stagnating. A strong network of connections for marketing professionals in the U.S. started expanding in the 1970, with the establishment of several associations, and has grown since. The development is very important if one recalls the significance that personal contacts have for sales, and even advertising. Traditionally, the US has been a marketing pioneer. An interesting point raised in the paper is the uncomfortable truth that sometimes scientists with better getting along skills get published over someone with higher quality material. Another problem with the academic methodology is that if all references are within the last decade, then old forgotten truths risk becoming the new bewildering discoveries.

An office. Illustration by Elena

The marketing mix, the 4Ps, consists of place, promotion (also called distribution), price and product. As you may recall, markets are influenced by a plethora of conditions of their surrounding: the legal, political, commercial, social and environmental. Indeed, today’s companies are very involved in environment protection and global long-lived welfare (the socio-environmental ethical perspective).

A basic concept is relationship marketing, which has as its goal to capture client lifelong value, the reason why younger generations are often the target audiences (as can be seen in this video of a Chrysler commercial with artist Eminem). The postulate is also explanatory for why ads running with the Super Bowl are likely to differ from those scheduled for Sunday afternoon Tele-Toons.

Another clever marketing strategy is reimbursements and reward points, such as the Air Miles, Guess and Optimum (Pharmaprix) client cards. What most shoppers forget is that on some occasions, the benefit must be claimed before a certain date or the accumulated gets automatically erased.

Some other marketing basics say that the target audience must not only be an interested, but a profitable clientele. Also, the immovability of needs; and thus, the necessity to concentrate on shaping them into wants, and brand loyalty.

As always in business, moral dilemmas can arise as in the case of TV show Skins. The US version is an adoption of the U.K. Skins, a highly controversial, accused of illicit pornography, show revolving around the lives (sex, drugs and rock ‘n’ roll) of teenagers. Condom companies have jumped at the opportunity, but the show and ads are now being pulled off.

Social reception is important; offensive content is restricted. An advertisement that was banned (in Europe?) featured a child throwing an inexcusable tantrum at the grocery store, while a tall young man stands embarrassed and confused. Then, a line across the screen reads something about the foresight of using preservatives.

Global warming and environmental crises have been a threatening yet popular topic of discussion for decades. The ozone layer perforation started taking place in the 1970s. The Kyoto Protocol and quotas on pollution production have been put in place in many industrialized nations. Catastrophe movies, such as 2012, have show-casted the disastrous consequences of a cataclysm as vigorous as complete meting of the ice caps. Corporations have now become ecologically aware, and so has marketing. Marketing professionals now pay attention to fabricating marketing campaigns respectful of, and sometimes in a crusade for, the ecology.

Reference:

• Gummesson, E. (2002). Practical value of adequate marketing management theory. European Journal of Marketing, 36 (3): 325-349.

Musical Commerce

Musical Commerce

People are strange when you’re a stranger – Jim Morison for the Doors, lyrics

Commercialization of musical talents has revealed that success depends on a large audience. Alleyne (2009) feels that due to globalization some art ends up selling out. Although the notice has been discussed before, it may be a slight exaggeration. Many have mean things to say about pop artists and how they trade their souls for money and so on and so forth. Musicians deplore dilution likewise; Rihanna has commented on how generic some of her contemporaries’ tunes sounded. Mass marketing demands some changes (that can be very profitable). A fascinating 80% of market share belongs to the four major music corporations: Universal Music, EMI, Sony Music International and Warner Music Group.

Stephens (2007) provides insight into the digital music industry of the Atlanta region. The author defines digital music simply as “music that has been digitally constructed” (Ibid. p. 13), the recording software used are Compact Disk and MP3. Other channels are ringtones, online radio, and synthesizers. Ringtones seem to be gradually replacing traditional CDs. However, the exact figure seems hard to pinpoint in the literature. Sources’ estimations are that ringtone sales for 2005 amounted to $600 000 in the US, while analysts forecast 800,000 Euros in European sales for 2007. But, predictions about 2010 went as far up as 11 billion by 2010, while CD and DVD sales represent close to 5 billion in the US and 20 billion globally.

Music of the square. Photo by Elena

In addition to aiding individualism and social cohesiveness, music also generates profits. At least since the 1900s a certain commercialisation of music went on, although not unheard of since even troubadours made somewhat of a living playing instruments a thousand years ago. As elsewhere in oligopolistic business, a few large companies have divided the market among themselves. The digital music industry differs from the traditional one along the value chain. The value chain is a managerial accounting concept and refers to the path travelled by a product from its invention and design through ordering, production, packaging, sale and customer aftercare. Because of the informational nature of the product advertising and distribution expenses are lower for digital music than for non-digital music. Production costs are similarly reduced. Atlanta’s digital art form is explicated in terms of the Porter Diamond framework, which encompasses competitive strategies, customer needs, resources and support system. Electric guitar sounds were excluded from the digital sample of analysis (Ibid).

References:

    Alleyne, M. (2009). Globalisation and commercialisation of Caribbean music. World Music: Roots and Routes. Studies across Disciplines in the Humanities and Social Sciences 6. Helsinki Collegium for Advanced Studies, 76-101.

    Stephens, A. R. -M. (2007). Atlanta’s digital music industry: Implications for workforce and economic development. Master’s Degree Thesis. School of Public Policy and College of Architecture, Georgia Institute of Technology.

To Be Or Not To Be

To Be Or Not To Be

It was at a party aboard the ITT-MGM orbital station that Al and Frank met the real estate man. The party was floating along in the station’s zero-gravity section, where the women had to wear pants but didn’t need bras. A thousand or so guests drifted around in three dimensions, sucking drinks from plastic globes, making conversation over the piped-in music, standing in midair up, down, or sideways as they pleased.

The real-estate man was a small, owlish-looking youngster of thirty, thirty-five. « Actually, my field is atrophysics, » he told Al and Frank. Both of them looked quite distinguished in iridiscent golf formal suits and stylishly graying temples. Yet Al still managed to appear slightly mussed, while Frank’s suit had creases even on the sleeves.

« Astrophysics, eh? Al said, with a happy-go-lucky grin. « Gee, way back in college I got my Ph.D. In molecular genetics. »

« And mine in social psychology, » Frank added. « But there weren’t any jobs for scientists then. »

« That’s how we became TV producers, » Al said.

Éthere still aren’t any jobs for scientists, » said the astrophysicist/real-estate man. « And I know all about the two of you. I looked you up in the IRS’ Who’ Who. That’s why I inveigled my way into this party. I just had to meet you both. »

A nice dress. Photo by Elena.

Frank shot Al a worried glance.

« You know the Heinlein Drive has opened the stars to humankind, » said the astro-realtor rhetorically.

« This means whole new worlds are available to colonize. It’s the biggest opportunity since the Louisiana Purchase. Dozens of new Earthlike planets, unoccupied, uninhabited, pristine! Ours for the taking! »

« For a few billion dolalrs apiece, »Frank said.

« That’s small potatoes for a whole world! »

Al shook his head, a motion that made his whole weightless body start swaying. « Look, fell… we’re TV producers, not land barons. Our big problem is fiding creative writers. »

The little man clung to Al tenaciously. « But you’d have a whole new world out there! A fresh, clean, unspoiled new world! »

« Wait a minute, » Frank said. « Psychologically, maybe a new world is what we need to develop new writers. »

« Sure, » the astro-realtor agreed.

A gleam lit Al’s eye. « The hell with new writers. How about recreating old writers? »

« Like Schulberg? »

«  Like Shakespeare. »

Business Studies

Business Studies

Many an undergraduate student has completed their studies only to realize that they have acquired a non-marketable degree. For example, stories of graduate students, who have been studying for nearly a decade with nothing much else to show for it than student debts and loans are surprisingly common. Furthermore, some PhDs even run into the problem of being overqualified!

However, not all fields are equally unlikely to land a good job straight out of college. For instance, all other things being equal, a professional degree (such as one in law or medicine) is much more likely to be a lucrative return on investment than one in arts history. Although whether liberal arts degree holders and those majoring in the social sciences have a harder time landing a better job than their less educated counterparts remains highly debated.

Conversely, students majoring in commerce, or business students, are usually looked at as those who gain most of the skills employers look for today. Indeed, with the ubiquitous sales and consumption phenomenon, it is only logical that most job postings on online job boards such as Monster or Workopolis refer to some element of academic background in business, or the equivalent. Obviously, experience is now more often than not a prerequisite in even the most entry-level jobs or unpaid internships.

But what majors can the potential bachelor of commerce (BComm) or bachelor of business administration (BBA) study? Finance, economics, accounting, marketing, international business and organizational behavior (similar in scope to industrial psychology) are popular choices. Certainly, one's mathematical abilities seem likely to determine whether one chooses to major in financial econometrics or business communication and international marketing…

Some elements are impossible, or extremely tedious to count, such as stars in the Universe. In such instances, estimates (approximations) are used. Image: Copyright © Megan Jorgensen (Elena)

Economics

Another exciting major available to commerce and business students is economics. However, care must be taken in choosing this particular program, since economists may encounter less job openings upon graduation than, for instance, accountants or marketers. Still, economists may pursue careers in academia, or perhaps in international organizations such as the IMF (International Monetary Fund).

Thus, economics is a social science dealing with the problematic allocation of limited resources given unlimited human wants. Further, economics branches out into microeconomics and macroeconomics. Related fields include finance and econometrics.

Microeconomics focuses on individual economic behavior and that of the firm, while macroeconomics looks at larger scale economic events, such as countries' economies, or very large corporations. A recent, and fairly unpopular among scholars, new development has been mesoeconomics, a term used to describe concepts which fail to fall under either the microeconomics or macroeconomics umbrellas.

Further, normative economics prescribes what should be done, and may stem from personal opinions or political convictions, whereas factual economics focuses on what actually is. Economics rests on assumptions such as ceteris paribus - Latin for "other things being equal".

One of the better known foundational concepts of this theoretical body of knowledge describes economic equilibrium. Simply put, economic equilibrium is reached by the market when producers (suppliers) and consumers (buyers) "agree" on a price and quantity. Adam Smith continues to be considered the founding father of economics, with several economic theoretical constructs outlined in his book The Wealth of Nations, while Keynesian economics represent an alternative school of thought pioneered by John Maynard Keynes.

Marketing

A future accountant must take several courses in order to complete all the requirements for a bachelor of commerce (BComm) or bachelor of business administration (BBA) program. Introductory courses cover related subjects, such as finance, accounting, statistics and marketing, to name a few.

Introduction to Marketing covers fundamental concepts such as the marketing mix (price, product, place and promotion) and advertising basics. However, marketing is not only about sales and advertisement, and includes many other areas.

Thus, to remain competitive, a firm must offer customers a product they value. Still, pricing a product depends on the nature of the offering. For instance, a luxury item, such as a Prada bag or a pair of Christian Louboutins, may be priced well above available quality bags and shoes, but the designer premium is reflected in the prestige, status or fashion statement conveyed by the brand. Also, professional marketers emphasize that it is impossible to generate consumer needs, only to shape wants.

After all, an individual may simply prefer less flashy (and much less expensive!) items, regardless of fashion trends.

Product lifecycle is also covered among the basics of Marketing 101. To illustrate, a product at maturity must add value in order to remain competitive, although what is perceived as valuable to the customer may differ from what the marketer sees as desirable features. Therefore, at least from a marketer's perspective, beauty truly is in the eye of the beholder…

Accounting

From a mathematical ability point of view, accounting is somewhat easier than finance. For example, financiers must learn more complicated mathematical formulas than accountants, in general. However, becoming a professional accountant remains far from being a piece of cake… and takes a lot of time in our humble opinion.

In Quebec, Canada, there used to be three designations in the accounting profession: CA, CMA and CGA. Nonetheless, the professional orders are working on simplifying the equation (no pun intended!) to converge on a single certification: CPA.

So you want to be an accountant? What does it take? At least in Quebec, the mostly French speaking part of Canada, becoming an accountant usually requires a combination of completed undergraduate studies and professional experience. A bachelor of business administration (BBA) with an accounting major, plus work experience at a recognized CA firm should fulfill the requirements of the professional order, but one is advised to find out for oneself on the respective regulating bodies' Websites.

There are no secrets to success. It is the result of preparation, hard work, and learning from failure. (Colin Powell) Image : Megan Jorgensen (Elena)

Value Differences and Value Proposition

Value Differences and Value Proposition

In business, if you are a leader you must understand that people you lead probably have strengths and weaknesses in different areas, so do not expect the same performance in all tasks from everyone in your team. Personality type indicators, such as the Myers-Briggs indicator classify people on a spectrum of thinking versus feeling and planning versus intuitive. This serves to highlight that some people are naturally inclined to be organized and enjoy planning, while others prefer to leave things open and be spontaneous. There is no wrong and right way, and different people will fit better into different roles based on their performances and preferences.

In the modern globalized economy, it is also important to be aware of cultural differences. There is evidence that nationalities with distinct culture have different attitude.

In the 1960s and in the 1970s Geert Hofstede carried out a survey on 116,000 IBM employees across forty countries. The study discovered differences in cultural attitudes on a range of areas:

Power distance: The extent to which members of a society consent to power being distributed unequally in organizations, e.g. manager – subordinate relationship.

Collectivism/individualism: The degree to which the society reinforces individual or collective achievement and interpersonal relationship.

Masculinism/Feminism: The division and application of masculine/feminine roles and values within the society, such as concern for others versus aggression.

Uncertainty avoidance: The extent to which a society manages the ambiguity of the future, and if people feel threatened by uncertainty.

Understanding such cultural differences does not mean racially profiling and stereotyping people, but instead appreciating and valuing other approaches.

“We have two ears, and one month so that we can listen twice as much as we speak”. (Epictetus, a Greek philosopher, circa A.D.100). Illustration: Megan Jorgensen (Elena)

Value Proposition

A value proposition is an important and well-used term in business.  A value proposition provides a short summary of the value of doing business with you. Thus to create a value proposition, you should consider the quantifiable benefits that you promise to deliver. This can be worked out by taking the benefits, costs and value that you can deliver (value = benefits/costs).

But do not overestimate the amount of interest you client will have in you. Therefor your pitch should be in the form of a short summary used to quickly and simply define your value proposition. This is known as an elevator pitch, because it should be possible to describe it to a CEO whom you bump into an elevator.

People buy for both rational and irrational reasons. The rational is the most important. It will be based on the business case that you present, while the irrational will be based on how much rapport you have developed with the potential client (frankly speaking, it depends on the answer to a simple question: Did you brighten up his day or make it more miserable?). To appeal to the irrational, it is necessary to be as polite, likable and courteous to the client as possible.

The business world can seem like a giant and faceless bureaucracy. Finding out the name of the right person to talk to, and the getting to talk to them, can be difficult. For example, if you telephone most established companies, the receptionist will tell you they operate under a no-name policy, meaning that unless you know the name of the person you wish to speak to, they will not connect  you to anyone.

Nonetheless, it is very possible to get access to the names, contact details and date you require. For example, in the United States, the titles, names, company names, as well as other information, which sometimes includes the financial details of limited companies, are sold by infogroup data providers and you can find out all the information of millions of executives and companies in order to begin approaching them.

An important tip: Always try to target the most senior executives. It may seem natural to assume that you should not bother the senior executives of a company with the products or services you’d like to offer, as they are, after all, extremely busy, and you should instead approach lowly administrators. However, it is far more effective to target them. Go in at the level of the GEO, Managing Director, and work your way down from there. At best, you penetrate at the most important level of the organisation. Mostly, you will be passed on to deal with someone else. In this case, the person you are passed on to is much more likely to give you his attention because you have been referred to them by their boss. At worst, the boss will not pay you any attention and you’ll be able to go back to the lower level.

By ElBa

People are mainly interested in themselves. With a few exceptions. I’m one of them (Quotes from Megan Jorgensen). Image: © Megan Jorgensen (Elena)

The East River Greenway - Part III

The East River Greenway - Part III

The Greenway enters Stuyvesant Cove Park, a 1.9-acre public park that runs from 23rd Street to 18th Street, east of Avenue C. It is located to the south of Waterside Plaza and to the north of the East River Park, connecting to the Captain Patrick J. Brown Walk on the south end.

The Captain Patrick J. Brown Walk is a brick-paved walkway that connects Stuyvesant Cove Park on the north to East River Park to the south. Designed for use by pedestrians and cyclists, it runs approximately between 15th and 18th streets, and Avenues C and D, and was named in 2002 after Captain Patrick J. Brown, a firefighter who died in the September 11 attacks, and who lived in nearby Stuyvesant Town.

All the pictures have been taken by Elena.

East River Park Amphitheater

Amphitheater on the Greenway.

East River promenade and viaduc.

Manhattan bridge as seen from far distance.

City services, such as the Department of Sanitation, use the waterfront for equipment.

During Michael Bloomberg's tenure as mayor, he spearheaded the PlaNYC 2030 initiative, which highlights projects and plans to transform the city by the year 2030.

An important focus is put on the waterfront, including the East River waterfront.

Bloomberg also stressed the importance of ferry transport, as an alternative to existing land transport options.

Manhattan as seen from the Greenway.

Stuyvesant Cove Park, wildlife Habitat #50805.

Sportsground.

Stuyvesant Park Ecology: Ecology is the study of living organisms and their relationships to one another and their environment. Plants are an essential part of life on Earth. They provide oxygen, food, and habitat for most animals. People use plants for many things, including medicine and clothing. Plants need soil for nutrients and anchoring.

Skycrapers as seen from the East River Greenway.

Queens as seen from the path.

Stuyvesant butterfly station.

Credit and Problems Related

Credit

Credit is a system whereby a person who can not pay gets another person who can not pay to guarantee that he can pay. (Charles Dickens).

Accounting is a vast field, with the two main subdivisions being managerial or management accounting, and financial accounting. Many people believe that accountants have an easier time to find a job than persons in other professions. Regardless of the field one seeks employment in, it is important to draft a good CV, have it reviewed by someone else and then write a final copy. If one wanted to simplify accounting to one equation, it would be: A = E + L, where A stands for assets, E for shareholders’ equity and L for liabilities. Liabilities are money that one owes, or outstanding debt and loans. One example of a liability is a mortgage. While the real estate market has been greatly affected by the sub-prime mortgage crisis, buying houses, condominiums and other residential properties remains an attractive alternative to renting, for those who can afford it.

Having good credit may open many doors. Image: Megan Jorgensen (Elena)

So how does it work? Homes and condos can be purchased directly from the owner, but people usually go through a real estate agent. Real estate agents must usually be licensed in order to practice in most jurisdictions. Aside from following courses to obtain their license, real estate agents must also comply with the regulations of the particular association overseeing activities of real estate professionals. Similarly, a mortgage may be obtained directly from a bank or other financial institution, or through the intermediary of a mortgage broker (some believe it may result in lower interest rates). Usually, there is a down payment, a percentage of the total cost of the property, and the rest is covered by a mortgage, a loan from the bank. As a general rule, banks will only lend money to those with steady jobs, adequate income given the funds to be borrowed, and a good credit history.

Nonetheless, having good credit may result in borrowing too much. For example, someone with an excellent credit rating may be offered credit limits well beyond what they initially planned to spend, maxing out their credit cards or overdraft accounts, and ending up with large debts. Then, unpaid debt could lead to financial woes, such as bad credit and problems with collector agencies. Indeed, anecdotes abound about people who had good jobs and stable, high income, and being in good standing with credit rating agencies, were offered much higher credit limits than they had for which they were pre-approved. Then, once they accepted the credit they ended up spending much more than they initially planned or even that was customary to them. So caution is warranted dealing with credit cards, credit lines and other debt obligations or liabilities.

Organizations exist to help people manage their debts. Image: Megan Jorgensen (Elena)

Alternatively, very small commercial loans are gaining popularity in the developing world, allowing entrepreneurs to start small businesses. The practice is known as microfinance. Clearly, capital and investment are an integral part of most businesses, since a good idea and luck alone are seldom enough without financing, investing and a sustainable cash flow. Interestingly enough, a popular TV show is based on this premise. In the The Dragons’ Den potential successful entrepreneurs compete with others to gain the financial and brand recognition support from already very successful entrepreneurs, who have a proven track record and the financial resources to bring to fruition the ideas which are presented to them. The series showcases participants describing their business ideas to the entrepreneurs, who are referred to as dragons, and the ideas are then rejected or accepted, in the latter case a business plan is proposed.