Domestic and Cross-Border Merger and Acquisition Factor

Domestic and Cross-Border Merger and Acquisition Factor Determinants Of Domestic And Cross-Border Merger And Acquisition Activities In Banking Sector Abstract Global announced mergers and acquisitions (MAs) in banking sector rose to a new high record in 2007. Although now MA activity has been hit notably because of the global financial crisis, it will have different performance in the time of post-crisis. Both China and UK will be the most active MA areas in the future, especially in the financial service industry. To secure the success in future MA wave, identifying the right potential targets is crucial. The purpose of the study is to identify the determinants of banks domestic and cross-border acquisitions in China and UK over the two specific periods which are before global financial crisis (2005-2007) and during crisis (2008-August 2009). This study will help bank managers to identify the right targets for future acquisitions and also help policy makers to understand which factors can increase the likelihood of bank acquisitions. Three aspects are examined by employing Logit analysis for the likelihood of domestic bank acquisitions which include banks characteristics, market features and regulatory factors. Additional geographic factors will also be considered into cross-border bank acquisitions by using the same model. The result of this study reveals the determinants of likelihood of being acquired for UK and Chinese banking industry respectively. It also shows the difference of determinants between domestic and cross-border acquisitions, and between the two specific time periods as well for two banking industries respectively. Detailed analysis is also provided for comparing the difference of determinants between China and UK, these two significantly different banking markets. Introduction ABN AMRO, which created as of result of the 1991 merger between Amsterdam Rotterdam (AMRO) and ABN whose history dated back to 1824 and was one of the largest banks in Europe, was acquired by RFS Holdings B.V., a company jointly owned by RBS, Fortis N.V. and Banco Santander S.A. for a consequent amount of 71 billion Euros in October 2007 (Financial Times, 2007). This was the biggest banking takeover in history and together with other deals made global mergers and acquisitions (MAs) rose to a new high of US $ 4.8 trillion in 2007 (Francis and Hasan, 2008). However, the following global credit crunch has created a new international financing and banking network where MAs may be mainly involved as a survival solution for many entities. This study will examine the determinants of banks domestic and cross-border acquisitions both in UK and China, the most active and representative country in developed financial market and emerging market respectively. Therefore, this chapter will give the overview of UK and Chinese banking industry, then focus on MA activities, and illustrate objectives and the value of this study. Background Global Banking Industry Overview The global banking industry experienced strong growth before the end of 2007. Assets of the largest 1,000 banks in the world grew 16.3% during 2007 to a record $74.2 trillion (Figure 1). This growth rate is 5.4% higher than the previous year. Worldwide assets of banking industry The Banker database) EU banks held the largest share, 53% in 2006/2007, up from 43% in 1999/2000. And among this, the share of UK banks is always on the top of other EU countries. US banks share in term of assets remained relatively stable at the level around 14%. The left shares are from other Asian and European countries (IFSL, 2008a). However, the global credit crunch which originated in the US sub-prime market impacted the whole financial system world widely. And it came close to collapse in the autumn of 2008, following the failure of Lehman Brothers and the ‘breaking the buck of a large US money market mutual fund (MMMF). The subsequent panic was then across global financial markets especially the western world. Although in recent months, market conditions have picked up which improves the outlook for banking systems, there has been a dramatic shift based on market capitalization in global banking industries (Bank of England, 2009). In 2007, the average level of world top 20 financial institutions market capitalization was peaked around $125bn, and banks from US and UK dominated the main financial market. However, in 2009, the market capitalization decreased by more than 50% for all financial institutions, and the top three largest ones are all Chinese banks. HSBS, which based on emerging markets at heart , is UKs sole representative in the list (Figure 2) (Financial Times, 2009a). Banking industry in both UK and China experienced great change through the global financial crisis. Financial Times UK Banking Industry The UK banking industry is a vital and essential part of the UK economy. It has experienced a deep level of restructure since the 1980s which includes regulatory change and banking system reform etc. Four major changes are associated with this restructure: increasing level of competition, both in market and out-of-market; deregulation; increased diversification and acquisitions (Drake, 2001). In 2007, UK banking industry reached a new high record for its assets and contribution percentage to UK economy comparing to other sectors. Assets of UK banking sector reached  £6,964bn at the end of 2007, up 11% on 2007. And there were 331 banks authorized to conduct business in UK. The 254 foreign banks physically located in the UK which is more than in any other country (IFSL, 2008a). Banking industry accounted for 7.6% of UK GDP in 2007, increased from 5.7% in 1997 (IFSL, 2008b). However, the following global financial crisis impacted the UK banking industry materially. During 2008, the return on the major UK banks total assets turned negative and the impact of this on return on equity was amplified by banks high level of gearing (Figure 3). Meanwhile, the mark-to-market losses of major UK banks book assets roughly doubled between October 2008 and January 2009, exceeding fresh capital raising over that period which partly reflected increase in expected losses (Figure 4) (Bank of England, 2009). But in recent months, market conditions have been improved, and it can be expected that UK banking industry which experienced restructuring and changed policies on bank regulations during the crisis will seek substantial domestic and cross-border business opportunities afterwards to strength its position in global financial market which gives great potential for MA activities (Economics Outlook, 2009). Bank Of England, Bloomberg) Chinese Banking Industry Chinas economy has been growing about 8% per year in real terms over the last decade. Even during the financial crisis, the Chinese economy continued to grow in a steady way (Peoples Bank of China, 2008). This rapid growth may be largely linked to the globalization of trade, but China has yet to ‘globalize its banking sector. The Chinese banking industry was dominated by four large state-owned banks with about 80% of industry assets, and very few foreign banks before WTO entry in December 2001. After 2001, the existing regulations and laws such as the Central Bank Law and Commercial Bank Law were revised to be aligned with the WTO agreement. There will be more liberalization of interest rates, more fair treatment of tax rates, less restrictions on ownership of takeovers and MAs, and great freedom of operational and geographical scope in the Chinese banking industry (Berger et al., 2009). In 2003, China Banking Regulatory Commission (CBRC) updated guidelines to encourage foreign share purchases. Foreigners then can own up to 25% of any domestic bank, with the ownership from any one investor allowed between 5% and 20%. This led to a historical high level of cross-border MA activities in Chinese banking industry later on (CBRC, 2005). At the end of 2007, total assets of banking institutions increased by 19.6 8% to RMB 52.6 trillion than 2006. And the reform and opening up of Chinese banking industry continued to advance, the assets share of large state-owned commercial banks decreased from around 80% in 2001 into 53.25% while others includes foreign banks increased into 15.98% (Figure 5). This indicated that Chinese banking industry encouraged foreign investors more than before which gave big potential for further cross-border MAs in China. Peoples Bank Of China) Even in 2008s special context, Chinese banking industry followed the reform strategy and promoted the reform and opening up policy of banking industry, and its total bank assets amounted to RMB 62.4 trillion, 18.7% higher than in 2007 while most banks in western world decreased their bank assets by more than 50%. The Chinese banking industry took the financial crisis as an opportunity for further reforms, development and finally achieving globalization in banking sector (CBRC, 2009). This growth trend also provides great potential for both domestic and cross-border MAs in China which can help strength the market position and substantial development for Chinese banks. The Merger And Acquisition Market There are two primary mechanisms by which ownership and control of a public corporation can change: merger and acquisition. In both cases, the acquiring entity must purchase the stock or existing assets of the target either for cash or for something equivalent value (such as shares in the acquiring or newly merged corporation). Mergers and acquisitions (MAs) are part of what is often referred to as ‘the market for corporate control (Berk and DeMarzo, 2007). The global merger and acquisition market is highly active, averaging more than $1 trillion per year in transaction value. Global announced mergers and acquisitions (MAs) rose to a new high of US $4.8 trillion in 2007, up 23% from US $3.9 trillion in 2006. Since the increasingly fierce competitions in banking sector during this time, banks conducted large-scaled MA within and across the border in aim to expand operation and enhance competitiveness. In 2007, MAs in banking increased 32.5% from US $543 billion in 2006, was again the most active sector for MAs (Francis and Hasan, 2008). But MA activities correlate with bull markets and are often greater during economic expansions than during contractions. During the past year when global banking industry was suffered by the credit crunch which originated in the US sub-prime market, MA activities were hit notably in financial service sector. The worldwide MA volume decreased significantly during the end of 2007 and the beginning of 2008. But, against all the negative factors, the trend of selective MA still exists as ‘acquirers take advantage of the lower market valuations to strengthen their business with synergistic deals and ‘the ongoing strength of emerging market (Financial Times, 2009b). From August 2008 by monthly comparison, the MA volume increased again increased gradually and kept vibrating. On average, the announced deal number is around 3,000 and total rank value is about $160,000 million per month (Figure 6). Thomson ONE Banker Database) MA Activities In UK Banking Industry Banking industry is the most active sector in MA market. And UK, despite of US, is more involved in MA process than any other EU country in financial service industry (Ahammad and Glaister, 2008). During 1999 to 2007, the number of UK incorporated banks which include commercial banks, investment banks, foreign owned banks and banks operated by retail companies declined from 200 to 157 mostly due to the severely competition and MAs in its banking industry (IFSL, 2008). Also, the rapid economic expansions during this period drive peaks in both domestic and cross-border MA activities in UK banking industry (Harford, 2008). At the end of 2007, the total announced MA deals in UK financial industry was 1,806, which represented as 38.3% of all MA deals announced in this year. And among 1806 ones, UK banking industry contributed significant amount of deal values comparing to other financial sectors. However, the following global financial crisis hit the UK banking industry significantly. Although the number of MA activity is less during economic contractions than expansions, it still has its market due to various business strategies. There were 79 MA deals totally in UK banking industry for 2008, and the number for 2009 as so far is 35. According to Economics Outlook, the post-crisis restructuring, recapitalization and seeking for re-strengthening business positions in UK banking industry will provide substantial opportunities for MA activities both domestically and internationally. This will produce an urgent demand for identifying right potential merger and acquisition targets which gives great practical value for this study. MA Activities In Chinese Banking Industry While the economic market get more international and worldwide, to be globalization has become an irreversible trend for all nations in the world, especially for developing countries (Bonin and Hasan, 2005). Although Chinese banking industry has achieved sustainable development during these years even in the global financial crisis, its still far away from globalization. Entry to WTO in 2001 and new policy for foreign investment in Chinese banking industry in 2003 brought momentums for encouraging Chinese banks to participate in global competitions. To strength their own positions in global financial market, most Chinese banks took actions of within or cross border MA activities which led by Industrial and Commercial Bank of China (ICBC) acquiring 20% share of South Africas Standard bank for $5.6 billion, the largest MA deal in Chinese banking industry in 2007 (Munroe, 2008). Further opening up in Chinese banking industry also attract strategic foreign investors invest in Chinese domestic banks through MAs. At the end of 2007, foreign financial institutions invested in 25 domestic banks totally through partially acquisition (Peoples Bank of China, 2008). With the rapid development and increased opening-up of Chinese banking sector, banks MA activities will be increasingly active. According to Peoples Bank of China, effort will be made to vigorously support qualified commercial banks to conduct MA and create favourable policy environment based on international experiences to encourage cross-border MAs in China. Moreover, the ongoing strength of Chinese economic will help to fund or attract domestic and overseas acquisitions in China (Wilson, 2008). It can be expected that China will be the most active MA area in the emerging market in future. To sum up, both UK and Chinese banking industry have the great potential for future MA activities. To secure the successful performance in the present and future MA waves in order to obtain sustainable business growth, identifying the right potential acquisition targets is crucial (Rossi and Volpin, 2004). However, investigating the relationship between bank and the features of market where banks are within and the likelihood of being a right potential acquisition targets in banking industry is relatively under-researched(Pasiouras et al., 2007). And it will be interesting to investigate and compare the determinants of potential MA targets between UK and Chinas banking industries which have significant differences in characteristics, and also for two special periods which are before and during the global financial crisis. Research Objectives And Value The purpose of this study is to identify the determinants of banks domestic and cross-border acquisitions in China and UK, and detailed analysis will also be provided for the difference of determinants between China and UK, the two relatively different banking sectors. Moreover, it will compare the difference between two time periods which are before global financial crisis (2005-2007) and on crisis (2008- August 2009). Three aspects will be examined for the likelihood of domestic bank MAs which included banks characteristics, market characteristics and management incentives. Another two aspects which are geographic factors and regulatory barriers will be also considered in cross-border bank MAs. Same Logit analysis model will be employed to analyze the domestic and cross-border MAs for the purpose that the comparisons have the same base. This study has the value for bank managers in China and UK to identify the most suitable targets or to check if their own bank has developed a profile that similar to typical target. And also, its meaningful for policy makers to understand which factors would increase the possibility for bank acquisitions (Scott, 2007). The study has the originality in three aspects. First, it combines all the important factors that will influence the likelihood of acquisitions in banking industry and distinguishes the domestic and cross-border acquisitions according to the gaps in the literatures. Second, this study investigates and compares two important banking sectors (China and UK) which havent done by any researchers before. Last but not the least, this research focus on bank acquisitions over a most recent time period, from 2005 to August 2009, which is the period includes prior global financial crisis when MAs rose to a new high record and on-crisis period. This differs from the prior studies that focused on earlier time periods and will reflect the new trend for MAs. According to Hagendorff et al. (2008), the more recent MAs may be qualitatively different from those in earlier periods which suggests that studies focusing on more recent MAs may provide more relevance to likely future takeovers. Literarure Review The relationship between the bank and features of the market where banks are within and the probability that a bank will be a potential target remains an open question (Cyree et al., 2000; Wheelock and Wilson, 2000). Few studies in the literature have examined the major features of banks which are acquired by other organizations (Hannan and Rhoades, 1987; Moore, 1996; Hadlock et al., 1999; Wheelock and Wilson, 2000, 2004) are focused on the US market, while Pasiouras et al.(2006), Shen and Lin (2007) and Hernando et al.(2009) have studied the Greece, Asia and EU banking industry respectively. Gaps In Previous Studies Hanna and Rhoades (1987) examined the likelihood of an acquisition based on the banks performance using a sample which was consisted 1046 acquired and non-acquired banks in Texas between 1970 and 1982. The results showed that market concentration and high capital asset ratios have negative relationship with the probability of banks acquisition. Moore (1996) also investigated the characteristics of US banks acquired between 1993 and 1996 using multinomial logit analysis. However, both studies mainly focused on financial characteristics of banks, but ignoring the external factors such as regulations. Based on these, some other studies focused on the search of the best predictive variables included bank characteristics, market features and regulatory factors (Bartley and Boardman, 1997; walter, 1998; Cudd and Duggal, 2000). Hadlock et al. (1999) researched a sample of 84 acquired and non-acquired US banks during 1982 and 1992 by employing both univariate and multivariate methods to identify the determinants of acquisitions. However, the variables they analyzed mainly focused on the management incentives. In more recent studies for US banking sector, Wheelock and Wilson (2000, 2004) used proportional hazard models and a two-part hurdle model by collecting massive amount of available data and employing relatively comprehensive variables included financial, market and regulatory factors to investigate the determinants of likelihood of banks acquisitions. They found that regulatory approval process and market concentration are negatively related to the likelihood of MA activities, while management incentives, location, banks size, and capital strength are positively related. However, they didnt identify the difference of determinants between domestic and cross-border acquisitions. More recently, Pasiouras et al.(2006) investigated the Greece banking industry to analyze the determinants of bank acquisitions, but they ignored the management incentives and corporate governance factors due to lack of data available. In a later study, Parisouras and Gaganis (2007) also investigated the financial characteristics of bank acquisitions covering the 5 principal EU banking sectors (France, Germany, Italy, Spain and UK). However, they didnt distinguish domestic from cross-border takeovers in their studies. Shen and Lin (2007) studied the determinants of financial institutions which engaged in cross-border MA activity before and after the 1997 Asia financial crisis. They found that regulation barrier and market opportunities have less impact on the takeovers after crisis while geographic factors are important determinants both prior to and post Asian crisis. Hernando et al. (2009) analyzed the determinants of bank acquisitions both within and across 25 members of the European Union during the period 1997 to 2004. Their results suggested that determinants of domestic and cross-border takeovers appear to be different in several aspects such as market concentration and profitability of banks performance. However, they examined all the variables according to the experiential model which generated from the US banking sector. The model can be argued if it is applicable to the EU banking industry. Other studies about the determinants of bank acquisitions mainly focused on the search of the most effective empirical method for the development of the prediction models (Cheh et al., 1999; Doumpos et al., 2004; Espahbodi, 2003). This study is based on previous research, and will cover the above identified gaps which include examining domestic and cross-border MAs respectively by using the same Logit analysis model, studying the two typical and representative banking markets in UK and China, and analyzing all the various factors typically found to be the most likely determinants of bank MA activities in the literature. And these factors will be detailed in the following section related to previous studies. Possible Determinants Of Banking MAs In Literature Bank Characteristics Seven factors of bank features are mainly analyzed in the literature which are related to the likelihood of being acquired. Bank Performance The main motive underlying acquisitions is the target bank is underperforming. The inefficient management hypothesis (Manne, 1965) argues that if management cant maximize the shareholders wealth by using the resource it has, then the firm is more likely to be acquired so the inefficient management will be replaced. Then there will be the space for the acquirer to improve the performance and efficiency of target and increase total profitability. Therefore, indicators of bank performance should contain explanatory power on the likelihood of being required. But the empirical results are mixed. Hannan and Rhoades (1987) found no evidence to support this hypothesis while Moore (1996), Focarelli et al. (1999), Wheelock and Wilson (2000), Pasiouras et al. (2006) and Hannan at el.(2007) found that less efficient and profitable banks are more likely to be acquired. Loan Activities However, while underperforming banks may provide greater opportunities for further improvement of profitability, they are also more risky, especially if the source of the underperformance is a high level of loans (Hernando et al, 2009). Hannan and Rhoades (1987) demonstrated that a high level of loans would indicate the aggressive business strategy of target bank and a penetrated and strong established client networking which will make it more attractive as a target while a bank with a low level of loans due to its conservative management may also be attractive to the acquirers since acquirers can use more aggressive way to increase returns of the target. And they found loan activity was negatively related to acquisition likelihood but not ‘statistically significant. But Moore (1996) found a negative and significant relationship for both in-market and out-of-market acquisitions. Moreover, the results of Wheelock and Wilsons studies (2000, 2004) were mixed. They found it depende d on the specification of the estimated model, in some cases it was negatively related but in others, it was positively related with not always statistically significance. Liquidity As stated by Pasiouras et al. (2007), liquidity is an additional factor that can affect the attractiveness of banks as targets since ‘the process of managing assets and cash flow to maintain the ability to meet current liabilities as they come due is an important decision for managers. This argument is supported by Wheelock and Wilson (2000) in their study. But it is also possible that some banks be acquired because they have liquidity issues and turn to help to acquirers. In the study of Pasiouras et al.(2007), it found no significant correlation between liquidity and likelihood of being acquired. Capital Strength Another important bank characteristic for likelihood of being acquired is the capital strength while there are different hypotheses associated with this (Hernando et al, 2009). Several hypotheses predict a positive relationship between banks capitalization and the likelihood of involving into acquisitions. One is that if high capitalization indicates inefficiency of a bank to diversify its assets, then better diversified acquirers will be attracted by such banks. Another one is that if acquirers face regulatory pressure of capital requirement, they may seek highly capitalized targets. Finally, banks with high capital ratios may be operated further below their potential profit due to less pressure to managers. While on the other hand, some hypotheses predict a negative relationship. One of them is an acquisition by a well capitalized acquirer might be stimulated by the supervisor if the target has low level of capitalization. And Hanna and Prilloff (2007) also argue that ‘acquir ers prefer low capitalized targets because it enables them to maximize the magnitude of post-acquisition performance gains relative to the cost of achieving those gains. The empirical results for this are mixed as well. Akhigbe et al. (2004) found a positive relationship between capitalization and the likelihood of being a target in study of publicly traded banks in the U.S. While most studies found the relationship is negatively related (Hanna and Pilloff, 2007; Lanine and Vander, 2007; and Pasiouras et al., 2007). Size Banks size is another characteristic which may influence the likelihood of being acquired. Smaller banks may be more attractive to the acquirers since its easy to finance and even integrate after the acquisition. However, if the acquirer is seeking economies of scale or market power through acquisition, especially for the cross-border acquisitions, size may have a positive influence on the likelihood of being acquired. Hannan and Rhaodes (1987) and Moore (1996) have not found a significant relationship between bank size and the probability of being a target while Wheelock and Wilson (2000), Focarelli and Pozzolo (2001) and Hannan and Pilloff (2007) find that larger banks are more likely to be acquired when they estimate their model using full samples. Lanine and Vander (2007) and Pasiouras et al. (2007) also have positive results in their studies. But Hanna and Pilloff (2007) also point out that for the acquisitions by smaller banks, larger banks are less likely to be acquired due to the difficulty of post-acquisition integration. Market Share Market share is an additional variable for the reasons of MA activities. Bodie et al. (2008) argues that market share is one of the most important factors which impact the acquirers decision in domestic and cross-border acquisitions in banking industry. It is similar to the variable of banks size, but provides a relative standard to evaluate the target comparing with others in the same industry. In the banking industry, a bank with small share is likely to be acquired since only banks with substantial market share can compete effectively and the assets of banks with smaller shares will be more valuable after being acquired by the large bank. But regulatory concerns about anti-monopoly for banks with large market share will give the negative effect on the likelihood of being acquired and high market share. The empirical results for this factor are mixed as well. Moore (1996) and Pasiouras et al. (2007) found that it is significantly and negatively related with the probability of acqui sition in in-market MAs while Hanna and Rhoades (1987) found it has positive impact on the acquisition probability. Future Growth Finally, prospects of banks future growth can affect the acquirers MA decision as well. Banks which experience high growth may be more attractive to the acquirers as potential gains raised from the expanding markets after acquisition can be expected more than before. Consistent with this hypothesis, Hannan and Rhoades (1987) and Cheng et al. (1989) find that the likelihood of acquisition is positively related to the potential growth rate of the assets of the target banks in their studies of U.S. banks in 1980s. However, Moore (1996) argues that slower growing banks may attract a buyer who is looking to increase the targets growth rate through efficient management. Together with Moore (1996), Pasiouras et al. (2007) find a negative relationship between banks growth rate and the acquisition probability. But Hanna and Pilloff (2007) and Lanine and Vander (2007) do not include this variable into their studies. Market Features Three main independent factors are discussed in literature about market characteristics which may influence the acquisition probability of a particular bank. First one is market concentration. Through the impact on bank competition, the degree of bank market concentration potentially affects the likelihood of acquisitions. Increased concentration may increase the attractiveness of the target banks in that market. But buyers that would want to increase the concentration further may face the pressure from anti-monopoly authorities (Hernando et al, 2009). Hanna and Rhoades (1987) found there is a negative relationship between market concentration and the takeover probability for out-of-market acquisitions while it is significantly positive for in-market acquisitions. Moore (1996) found no statistically significant relationship between them for in-market takeovers but a positive sign for out-of-market ones. Hannan and Pilloff (2007) also fail to find any statistically significant evidence that market concentration is a determinant of takeover targets. However, Pasiouras et al. (2007) stated a significantly negative coefficient on the five lar ge banks concentration ratio in their sample of European takeovers. Harford (2008) argues that there is a correlation between industry profitability and MA activities within this industry. MA deals are often greater in more profitable industries than those less profitable ones. According to Thomson ONE Banker database, there are less MA deals in UK banking industry in 2008 than ones in 2007 when the whole banking industry was experienced the global financial crisis. This also gives the evidence that the level of industrial profitability has the positive relationship with the likelihood of acquisitions. However, Ali-Yrkko (2002) points out that in the beginning of 1990s, the entire banking was restructured due to the extremely deep bank crisis with large bankrupts. Low profitability may be one of the main reasons which lead to higher level of acquisitions in banking in

Manage group living Essay

Introduction (What you are going to cover in this document) I am going to cover group living for adults. There are various groups living for adults and each have a positive and negative impact. Group living can be beneficial for adults who are unsafe to live on their own and for individuals who are lonely. I will focus on residential care for group living. When individuals reach the stage where either they or their families have to decide it will be of their best interests to be moved into residential care, there are many factors that influence this. Age Mental capacity to make decisions Safety factors/risks Financial Living in a group can pose problems as individuals are brought together, individuals may not always get on with one another due to their views, morals, background and general preferences. The difficulties is pleasing everyone and ensuring they all live amicably together. The benefits in group living is having companionship/friendship and plenty of activities that they can attend with individuals they know and live with, still enabling them to have their own space and privacy if they so wish. Various group living: Residential care Elderly care complexes Hostels Supported living Residential enables 24 hour care Elderly complexes ensures they have a warden and activities if they so wish to join in, care provisions if they so wish Hostels are temporary living Supported living offers more choice and freedom, activities, meal provisions and warden input, where if needed they can have homecare provisions. Whichever an individual or their families choose they all have to promote a happy/safe environment for individuals, ensuring they meet standards set out for residential or group living provisions. Every group living environment/care home has to meet standards set out by the government, these are monitored by CQC, GSCC and local authorities to ensure standards are met. Within group living the environment has to be safe, clean and ensure individuals wellbeing, while Promoting their independence and uphold their rights to human necessities. It is important that standards identify the requirements associated with leading and managing group living provision; it includes developing the physical environment, daily living activities and group activities in such a way that they support the achievement of positive outcomes for individuals. By respecting each individual and their individuality, making a setting that enables individuals choice, freedom and to be able to express themselves. Comfort and warmth, meal choices and variation, respecting cultures and backgrounds and focusing on their wellbeing, health and happiness. Fitness for purpose: The regulatory powers provided by the CSA are designed to ensure that care home managers, staff and premises are ‘fit for their purpose’. In applying the standards, regulators will look for evidence that a home whether providing a long-term placement, short-term rehabilitation, nursing care or specialist service is successful in achieving its stated aims and objectives. Comprehensiveness: Life in a care home/group living is made up of a range of services and Facilities which may be of greater or lesser importance to different individuals. In applying the standards, regulators ensure the service package offered by the care home contributes to the overall personal and health care needs and preferences of individuals and how the home works with others services / professionals to ensure the individual’s inclusion in the community. Meeting assessed needs: In applying the right standards, inspectors will look for Evidence that the care home meets needs of individuals and that Individuals’ changing needs continue to be met. The assessment and service user plan carried out in the care home should be based on the care management. Individual care plans that meets and specifies their needs. Good residential care poses a variety of challenges, and requires high levels of expertise and creative ability from managers, staff and external supports. They need to be committed to enabling residents to take as much responsibility as possible for the planning and management of their own care. Managers should adopt a planned approach to meeting the needs and promoting the potential of individual residents, within a regime and culture for the unit, and groups within it, which provides the right balance of security, stimulation and scope for independence. ( Et al CQC website residential care) Quality services: The Government’s modernising agenda, including the new regulatory framework, aims to ensure greater assurance of quality services rather than having to live with second best. In applying the standards, regulators will seek evidence of a commitment to continuous improvement, quality services, support, accommodation and facilities which assure a good quality of life for individuals It is important individual have rights to their own choices that include risks. The risks they take need to be evaluated to ensure the decision does not outweigh the risk to individual or others. The difficulty within group living is what may be safe for one individual may not be for another, for instance one individual may be safe to come and go as they please whereas another may need supervision to go outdoors. This can pose a problem if fully independent individual leaves access door open or invite an unsafe party to go outdoors with them. There are risks associated with everyday living but ensuring everyone’s safety can be a challenge. Ensuring equipment, living quarters, and environment is kept safe and secure while promoting independence and choice. If a risk cannot be eliminated I would look at ways to reduce the risk, this way the individual is still in control but has measures in place to ensure their safety and the safety of  others. Addressing risks with individuals and fully informing them why something is classed as a risk enables them to make an informed decision as to if they want to continue to take the risk, dependant on the severity. Working with individual and listening to how they deem or see something works, but if they are adamant and the risk out weights the benefits then measure have to be put in place. The physical environment can promote wellbeing by having a nice homely atmosphere, allowing each individual to contribute to this. The lighting, warmth, setting, fixtures and fittings as well as what activities everyone enjoys and encouraging all parties to participate. By having a safe but nice environment it promotes wellbeing, by allowing and including individual to say what they like and dislike promotes inclusion. Encouraging them to participate in various activities gives stimulation and helps build friendships within group living. It is also important that the staff have good training and engage with individuals, that they remain friendly and impartial. Choice is one of the main factors whether this be meals, settings, activities getting the right balance and promoting their independence and involvement. All this contribute to their wellbeing and happiness. If the environment was a cold, damp, dark, with no opportunities for activities, there was no freedom of choice and made individual have set meals, toileting times and took their rights and independence away, I cannot imagine any individual would be happy and their wellbeing would decline. Maintaining and the upkeep of furnishings and decorations are important, the cost of this can be substantial, with the right budgeting and setting aside of finances will help maintain this, that way the upkeep can be maintained and the finances will be readily available. Part of this reflects in the amount it will cost for individuals to live there. Another way is to hold charity/fundraising days. I believe you can have cut backs but still maintain quality assurance without delivering low quality surroundings. Part of this is looking after the environment, if the environment is of good  quality to begin with individuals are more likely to maintain this and respect it as their home. Not allowing items that need repairing to get to the stage where they are in repairable or unsafe. Ensuring electrical items and gas servicing is maintained, this is a legal requirement within group living environments. Ensuring the environment is kept clean, safe and hygienic maintains it’s daily living requirements and reduces the risk of cross contamination. There has to be adequate space for each individual and the correct amount of staff ratio. When making decisions regarding the environment it is important that the individuals who live there are included, they may want some of their own belongings, like a chair of dressing table. All of these things are important to them as without been given the choice they will feel as though it is not their home. Each individual will have different taste, likes and dislikes, although this may prove difficult to please each one, if each one has some input they will feel included and are more likely to come together as a group to decide on what everyone wants. This should include decisions down to cost, what furniture, fitments; decorations they feel are the most important and make their environment safe, the safety aspect needs to be looked at the same as comfort. Chairs that support individuals and offer the right height, wash ability etc. Beds, dining room furniture, decor, plants, pictures, easy access between chairs. Ensuring the environment offers stimulation and relaxation. Daily activities are an important part of group living and these also need to be agreed upon. Trips, bingo, sing-along’s, flower arranging, exercise classes, outdoor activities, gardening, vegetable plots and planting. By offering choice and ensuring daily activity times are adhered to,  implementing an activities co-ordinator and ensuring staff encourage participation and inclusion of individuals and staff. It is nice for individuals when family members attend and this should be encouraged when possible. The best times for activities tend to be afternoons and early evening times. By offering activities throughout the day enables all individuals to include themselves at some point or another. Legislation states that individuals must have choice and ensure the activities are appropriate for age, genders, and cultures. The outcomes from these have to be achievable, ensuring individuals do not feel belittled or restrained. Individuals must have the opportunity to exercise their choice in relation to: leisure and social activities and cultural interests; food, meals and mealtimes; routines of daily living; personal and social relationships; Religious observance. The outcome must find the lifestyle experienced in the home matches their expectations and preferences, and satisfies their social, cultural, religious and recreational interests and needs. interests are to be recorded in care plans and that they were given opportunities for stimulation through leisure and recreational activities in and outside the home which suit their needs, preferences and capacities; particular consideration should be given to people with dementia and other cognitive impairments, those with visual, hearing or dual sensory impairments, those with physical disabilities or learning disabilities. When supporting others in the implementation of daily activities it is important they treat individuals with dignity and respect. That they encourage inclusion and allow individuals to do as much as possible for themselves. They also need to respect individuals who do not want to be included in group activities and mealtimes. Some individuals may prefer to  eat in privacy, by respecting their rights, choices and preferences. Some individuals may need more support than other, for instance if playing bingo they may not be able to mark the numbers off or see the card properly. Supporting these individuals is important for their wellbeing and to enable them to participate. Ensuring staffing levels are adequate so that workers are able to encourage and assist active participation without causing undue stress to staff members or residents. Each individual has the freedom of choice, this should be respected. An individual may not want to join in a certain activity but no others, for instance exercise or stimulation classes, All of these need to be specified in the care plan for each individual. By getting feedback and involving everyone in the decision process I can implement activities for everyone. Certain activities may need to involve numerous risk assessments to reduce risks but still allowing the individual to safely participate. Systems put in place will ensure all questions relating to each individual are clear and precise and cover all aspects of their needs, preferences and choices. No assumptions should be made and neither should anyone be forced to participate in anything they do not want to. Reviewing daily activities is important as individuals may become bored and activities become stagnant, less stimulating over time and frequency. When individuals participate a log should be made of how they participated and what level of participation was involved, these go into the care plans and activity log sheets. A quiz for instance may be easier for some but hard for others, by ensuring all levels are catered for by dividing classes or varying quiz questions for different groups. Reviews are made weekly when activities are organised for the week ahead, circumstances may arise that require a daily review. If new individuals become home members or the dynamics change. Positive group livings are established by ensuring individuals are supported to remain independent, given choices. By ensuring staff remain happy and supported in supporting individuals. Listening to individual’s preferences, choices and needs and maintaining a calm, warm and welcoming environment.  The decoration, cleanliness and staff all play a huge part in ensuring a positive atmosphere/establishment. Group living can promote positive outcomes for individuals due to the fact they are with other likeminded individuals, socialising each day, stimulating and building new relationships. They can be monitored more closely compared to living alone in the community. Friends and groups encourage each other and they have access to constant support. By living in an environment that is focuses on quality care whilst encouraging individuals to remain independent. Through group activities individuals are less likely to see a goal as a hurdle, it is more enjoyable as a group and tends to forget they are actually working towards a goal or find it easier as a group, having support encouragement from others. If an individual has mental health issues and tends to become depressed and withdrawn, we are able to work towards a positive outcome within a group living environment by supporting them to socialise, less likely to become withdrawn, there is more support available for them. If an individual tends to have frequent falls due to the fact they neglect to use a walking aid, through group living the risk could be reduced by the constant reminder/prompting to use a walking aid and monitoring of their wellbeing and current health conditions. Group living can have a positive impact on individuals if the right conditions and support is readily available. Each individual is encouraged and supported to maintain relationships by activities, group talks and staff members interacting with them. When individuals build relationships this is maintained by seating and setting but not to the point that it disinclines others or creates a divide. Creating divides creates problems, therefore this should be discouraged. Creating an open warm caring environment starts with the staff and generally flows towards residents, encouraging individuals to accept and understand other individuals they live with. Having days out, meetings and group talks and activities encourages individuals to build relationships and maintain them, by dealing with problems and issues as and when they arise, fairly and  openly. When conflicts arise they should be dealt with fairly and non-judgemental. Looking at each individual’s aspect of how they view and how they feel, by encouraging resolve and not allowing conflict to cause divides or non resolutions must be adapted. A conflict arose where 2 individuals who had previously been very close friends argued when it came to mealtimes; one was unable to sit by the window due to her dislike of watching people walk past whilst she ate her meal. The other loved sitting by the window, neither of them had explained to each other their reasons. By getting both of them together after speaking to each individual first we were able to come to a resolve and they were more understanding of each other’s needs and choices. By seeing this they both sat where they wanted and built further relationships with other residents. It is important to have working schedules and patterns in group living so that individuals have continuity of care. Assigning workers to groups of individuals and ensuring staffs are not over worked is also imperative to not only their wellbeing but the wellbeing of the residents. There are times when schedules will affect residents such as mealtimes, activity times and times when staffs need to attend team meetings. Fill care plans in and ensure the home is running smoothly. It is at these times that I need to ensure staffing levels are adequate and residents are still tended to. By having a good rota structure, staff that is reliable and choosing the best times that suit not only staff but also the residents. You cannot make individuals go to the toilet at the same time or have meals at set times. Baths and other necessities that individuals need, this would be institutional abuse, therefore maintaining good staff levels and been prepared for unforeseen circumstances are so importa nt, this will contribute to the smooth running of the home and environment. Changes to schedules are made when staff members who possibly do better at certain times of the working day to others. For instance one staff member whose shift patterns are late but they appear to be able to encourage individuals to participate in activities or certain activities. Then they  would be moved. By knowing my staffs strengths and weaknesses I am best able to place them in shifts that are organised around activities, days out or other requirements. Another instance is a certain individual may become accustomed to a certain staff member and prefer them to bath her/him. All of these things need to be taken into account when rota’s/schedules are being prepared. Meal times, activity times and such alike will need more staffing. Evening and bedtimes also require staffing levels to be adequate. If schedules/rota’s are looked at properly and ensuring there is sufficient levels for unforeseen circumstances/having a contingency plan in place helps and if good communication is made with staff then these can easily be resolved. Ensuring staff have a good development plan and supporting staff in training and knowledge is so important. This ensures staffs do not become stagnant in progression/ knowledge. In house training is beneficial so that staff can address current issues with current residents. However sending staff on training courses will also be just as beneficial, but training is a requirement that needs to be maintained. Staff have to be trained in the right areas: NVQs, Moving and handling, POVA, Medication, Health and safety, First Aid amongst others. By supporting staff in training and ensuring there is room for progression within the workforce staff retention and further progression will have a knock on effect for residents, ensuring the best care practises that are up to date. Whilst it is good for care staff to build a relationship with residents it is important they maintain professional boundaries. I support them in doing this by maintain professionalism at all times, I ensure I deal with any concerns appropriately and if needed involve family members of the individual. By explaining to individuals the reason we are supporting them and why relationships need to remain professional between workers and residents is for their best interests so that both staff and residents are able to make the best decisions without emotional attachments. Obviously there will always be a level of attachment but by maintaining a professional  one, individuals are less likely to ask staff for things or to help with needs that are not within their remit or put either party at risk of say abuse, neglect Etc. The last thing anyone wants is a worker or staff member to get attached to the level where either party feels obliged to do something and then keep secrets. This puts both parties at risk and does not give a good example to others. By setting our clear professional boundaries to staff and toward residents helps maintain clarity, I give examples of why it is important to maintain these and the risks should these not be maintained. Supervisions and appraisals all go towards this process and these are regularly maintained for the benefit of staff and business. Residential care is not a cheap option. Because it caters for those with complex disabilities, a high degree of dependency needs for intensive staff support and supervision, or for high levels of professional skill and expertise. It must be properly resourced to be safe and effective; this is not to say that residential care may not be the most economical way of providing proper support for some groups of people with extensive or complex needs. But care on the cheap will generally be bad care, and will often do more harm than good. Residential care requires adequate funding, and a clear framework of quality controls and quality assurance to ensure high standards of service and practice. I have a responsibility to see that the residential service is well-managed and staff at all levels properly equipped through training and development programmes for the task they have to do. A framework of external regulation, registration and independent inspection is essential, including the General Social Care Council, if the public is to have confidence in the standards of care, conduct and practice competence provided. Providing a positive group living environment starts with the management of the home and maintaining this environment, staff training and interaction. By ensuring and training staff to encourage choice, preferences and encourage the residents to remain as independent as possible, ensuring adequate monitoring of staff, supervisions and appraisals remind staff to adhere to care practises. A short summary of what you have written or the conclusions you have come to: I have come to the conclusion it is imperative for the individuals whom live in residential care to remain as independent as possible. That they are involved in the decision process of their care, daily activities and the home environment. The boxes will expand to fit as much as you want to type in them. When you have finished first go back and proof read what you have done, checking for spelling, punctuation and grammar errors. Then read it through with the criteria next to you and show, by putting the criteria number in the end column, where you have covered the criteria.

Ontela Picdeck Harvard Case Essay

Ontela designed a revolutionary product which allows wireless subscribers to seamlessly transfer data from the consumer’s wireless phone and send it to an email inbox, PC, or website. This allows consumers to use their wireless device more frequently, which generates more revenue for the industry in mobile phone services. Joe Levy, Ontela’s director of carrier marketing, assisted with PicDeck’s segmentation in determining the appropriate target audience. Below you will find an analysis on PicDeck’s choices regarding customer segmentation and evaluation on their data; supporting that research proves their target audience are primarily middle-aged married women and men. SWOT Analysis Issues Short-term †¢Best way to determine the right target audience †¢Making PicDeck more conceptually-friendly so consumers can better understand it user-friendly functions Long-term †¢How could Ontela balance the needs of the subscribers with the carrier’s goals of decreasing churn and increasing ARPU? †¢What is the next big idea to keep company ahead of the game (please help rephrase) Problem Statement: For future growth, the industry will need to continue being creative and innovative in seeking out added services such as data and wireless Internet use to increase yearly revenue; how can Ontela and their counterparts target the right consumers which will utilize both without compromising ARPU? Case Response: Section A 1. Based on the three customer personas, which customer segment should Ontela target? a.Ontela’s objective was to increase the use of wireless carrier service and increase average revenue per user (ARPU). In order to do this the organization conducted a segmentation research to select the right Personas, which will determine how to allocate their resources and time for consumers who use their cell phones and cameras the most. Based on this criteria Sarah, the parent should be considered as the primary target. It is important to consider that women control or influence the purchase of 80% of all consumer goods, including such items as stock for investments, personal computers, and others (2011, Boone). This will automatically include Regina, the teen into the equation, which will automatically boost both revenue and data usage. According with some cell phones statistics from the Defakto Company: †¢55% of mobile social networks usage that is female. †¢42% more likely working moms are than average cellular users to download content to their cell phones †¢42% of women post photos on Facebook (2010, Vermon) Therefore, for this specific scenario, the target should be a female from age 15 to 45 years old, which are the ages for the generations that have lived through the technological changes. In order to narrow more of the target audience, a psychographic segmentation will be necessary. The organization would need to know the typical values and lifestyle of the women who use cell phones cameras, for this purpose we can use tools as VAL which classify consumer by psychological characteristics. 2. Create a positioning statement for your chosen persona and identify the key themes that should be emphasized in the messaging for the PicDeck service to this segment. a.Positioning statement for PicDeck: For the wireless subscribers who want to transfer picture to their computers, email inbox, and mobile devices, the PicDeck provides the most effective way to download and manage pictures. Unlike the currently complex and limited methods we have today, the PicDeck allows the transfer of pictures to any pre-designated destination without the need to press any extra buttons. 3. What are the risks of using qualitative personas to select target customer segments? a.The customer personas and the goal of the organization should be aligned with one another to ensure the company’s cohesiveness and allow them to determine their target customer. The use of personas is useful in marketing to understand the customer behavior, so the personas should represent attributes of the target audience that we want to reach. In using qualitative personas we are assuming that the people represented have similar expectations and goals, and we are not considering important issues as culture and race; and that’s when it becomes risky for the business. This can cause the company to lose revenue because a product of this caliber is universal and therefore the company has no need lock themselves to a certain type of customer when all types of customers can utilize the product. Section B 4. Which segment(s) would you recommend as a target for PicDeck? Explain the logic behind your choice. a.Using demographic segmentation has been a useful tool in determining which customers to target in promoting their product. According to exhibit 4 in section B the strongest response in the surveys came from middle aged married consumers and/or male wireless subscribers. There is additional statistical research supporting this data from the customer personas; which a middle-age married woman with a teenager has the need for this produce and the purchasing power to attain it. In addition, Exhibit 2 consistently illustrates that the middle age consumer wants a device that is easier to transfer photos to their PCs, email, or social website. By continuing using demographic segmentation they can place more focus on income, education, and occupations within middle aged married consumers and males; which this may address Mr. Levy’s concerns regarding the increasing and/or maintaining ARPUs. 5. Develop a positioning statement for your selected target customer(s) the key benefits of the PicDeck service and how the service is differentiated from alternative that customers might consider. a.For the up-to-date Mom and professional savvy male who is looking for timeless convenience the PicDeck Mobile provides fast and clear pictures of your loved ones or Power Point to your boss. Unlike archaic digital cameras the PicDeck can seamlessly send that memory or great idea before you can say cheese. In conclusion Ontela’s Picdeck was definitely on the right path. Looking at today’s society people are using this product every day. Whether it’s a person taking pictures with their smartphone, and instantly sending it to their Facebook page or a fellow student snapping a shot of the groups contact sheet and sending the document via email to the group members; everyone values the product for its convenience and accessibility. It has now become the â€Å"norm† function of a phone. Therefore, Levy’s positioning strategy to ensure the solvency of his company; in addition, addressing carriers’ goals seems as a success with the continuing growth of this industry.

Make a Simple Weather Barometer

People predicted the weather back in ye good olde days before Doppler radar and GOES satellites using simple instruments. One of the most useful instruments is a barometer, which measures air pressure or barometric pressure. You can make your own barometer using everyday materials and then try to forecast the weather yourself. Barometer Materials glass, jar, or canplastic wrapa strawrubber bandindex card or lined notebook papertapescissors Construct the Barometer Cover the top of your container with plastic wrap. You want to create an airtight seal and a smooth surface.Secure the plastic wrap with a rubber band. The most important part of making the barometer is getting a good seal around the rim of the container.Lay the straw over the top of the wrapped container so that about two-thirds of the straw is over the opening.Secure the straw with a piece of tape.Either tape an index card to the back of the container or else set up your barometer with a sheet of notebook paper behind it.Record the location of the straw on your card or paper.Over time the straw will move up and down in response to changes in air pressure. Watch the movement of the straw and record the new readings. How the Barometer Works High atmospheric pressure pushes on the plastic wrap, causing it to cave in. The plastic and the taped section of straw sink, causing the end of the straw to tilt up. When atmospheric pressure is low, the pressure of the air inside the can is higher. The plastic wrap bulges out, raising the taped end of the straw. The edge of the straw falls until it comes to rest against the rim of the container. Temperature also affects atmospheric pressure so your barometer needs a constant temperature in order to be accurate. Keep it away from a window or other places that experience temperature changes. Predicting the Weather Now that you have a barometer you can use it to help predict the weather. Weather patterns are associated with regions of high and low atmospheric pressure. Rising pressure is associated with dry, cool, and calm weather. Dropping pressure forecasts rain, wind, and storms. Quickly-rising pressure that starts from average or high pressure during fair weather indicates a low-pressure cell is approaching. You can expect the pressure to start to fall as poor weather approaches.Quickly rising pressure (over a few hours or a couple of days) after a period of low pressure means you can expect a short period of good weather.Slowly rising barometric pressure (over a week or so) indicates good weather that will stick around a while.Slowly falling pressure indicates the presence of a nearby low-pressure system. Changes in your weather are unlikely at this time.If the pressure continues to drop slowly you can expect a long period of bad (as opposed to sunny and clear) weather.A sudden drop in pressure (over a few hours) indicates an approaching storm (usually arriving within 5-6 hours). The storm probably involves wind and precipitation, but wont last long.