Business Operations for Goods and Consumer Products -myassignmenthelp

Question: Expound on theBusiness Operations for Goods and Consumer Products. Answer: Presentation: Retail shops are those spots, which includes a technique to offer merchandise and buyer items to the clients to win a benefit by means of their directing sources. Retailers are those individuals who fulfill the requirements of the changed people to acquire a benefit. The word shopping is incorporated with this procedure, which by and large includes purchasing the items. Current business in retail shops includes the proprietor to settle on vital choices with respect to the business about the commercial center and the kinds of items to be served and the format of the shop including the advancements applied. This report talks about the different advances applied in the Oz Supermarket. The applied innovation to be talked about is the PayWave innovation. The report likewise incorporates certain suggestions to help increment the business. Conversation: The Oz Supermarket is another retail shop that is arrangement with the principle outlook of diminishing the issues related with the clients remaining in long lines. The store urges the clients to come inside the market and afterward get the necessary items. After the finish of shopping, the clients are not required to remain in lines to pay for the items. Rather, they are required to wave their card at the checkout point and the bill is naturally deducted from their card. PayWave innovation: The PayWave innovation includes the card of the clients to be floated or tapped at the terminal for exchange. This element hinders the prerequisite of entering the pin in the terminal and encourages cashless society (Lerner, 2013). Numerous retail outlets are receiving this component for money related issues and less lines. This innovation needs the individual to be inside a sweep of 4cm and a similar exchange is impossible twice because of the nearness of a one of a kind exchange number. Business Process: The merchandise that are accessible in the general store incorporate those items that have a place with the gathering of family and fixed. The chain of items included is those, which are durable and are accessible for quite a while. This encourages powerful business and doesn't require the need of steady checking of the items. The store is additionally expected to incorporate the innovation of PayWave. This innovation kills the need of clients remaining in lines for checkout process. During the section of the clients in the store, they are required to wave their card at the passage of the store. This encourages them to enter the store with no issues. The streetcars utilized for shopping are fitted with uncommon Radio Frequency Identification (RFID), which tracks the record of the items that are being placed in them. At whatever point a client places an item in the truck, the item is consequently lined for installment from the card of the client in question. On the off chance that the item is expelled, the line is exhausted from charging. After the way toward shopping, the clients sack the items and leaves with no issue of remaining in the line. The bill to be deducted is consequently produced using the card of the client in question. For the clients without a PayWave innovation affirmed card like the visitors and understudies, they are permitted to make a money store in the store and are given a brief card which will empower looking for them. The shopping procedure is same like different clients. In the wake of shopping, the parity sum is returned or recorded to encourage future exchanges. On the off chance that the money store for the card isn't sufficient to compensate for the buy sum, an alert should ring. The store causes an additional expense for the need for labeling of RFID perusers in every one of the shopping baskets present in the store. This expense is made up from the enthusiasm of the clients who are consistently in a major surge. The store additionally encourages the clients to see the itemized rundown of the items that are accessible in their truck for simple shopping. These represents indicating the amounts of the truck are set deliberately all through the store. The store additionally gets the necessary assets by charging for vehicle leaving. The rates are higher for top hours are a lot of lower for non-top hours. Impaired stopping rates are free. Suggestions: The business is acceptable yet there is nearness of specific elements that may thwart the successful deals made by the grocery store. The clients are the expected deals and more items they purchase, the more deals that will be made. The store needs to make familiarity with utilizing their cards with PayWave innovation as not all individuals have their cards with PayWave innovation (Leavitt, 2012). The individuals who don't have the cards are to be ensured getting one and not depending on money buy each time they shop in the store. This aides in diminishing the base vacation that is being made as a result of them. The nearness of different represents demonstrating the truck substance are to be very much encouraged with the goal that clients feel more straightforwardness in checking their substance. In addition, this can make a line when all the clients in a specific zone will attempt to check their substance simultaneously (Piramuthu, Wochner Grunow, 2014). The requirement for a more up to date innovation is required. The salesman answerable for client relationship is to be very much prepared so powerful connection between the clients and the store is made. A retail location is subject to its clients to make the deals planned for the store (Vivek et al., 2014). If there should arise an occurrence of any issues or misconstruing, the sales rep is to cause them to comprehend with respect to any issues confronted. This thusly encourages better understanding and assists with showing signs of improvement faithfulness from them. End: The PayWave innovation utilized in the Oz Supermarket is a superior activity as this helps the possibility of cashless society to be actualized. The necessity for money and the requirement for remaining in line are restricted by the utilization of this innovation. Along these lines, it is finished up structure the report that the business activity is a generally excellent activity for serving greater quality items to the clients and make more deals. Recommendations for client assistance improvement: There are numerous approaches to improve the nature of client experience apparent. This aides in more deals made, as the center business is reliant on these clients. To expand the client experience, the abilities that are being utilized by the sales rep capable in the store are to be made increasingly proficient (Perdikaki, Kesavan Swaminathan, 2012). The requirement for tolerance and consistency is a fundamental quality in the sales rep. Numerous clients will approach similar inquiries for their fulfillment until they get what they need. The business group should be progressively understanding when managing such sorts of clients. The business group needs to adjust to the adjustments in states of mind in a day. These must not come as a shock and business must not be hampered because of this explanation. The prerequisite for clear correspondence among the sales rep and the clients are a need. The correspondences saw can influence the business as it can thoroughly change the outlook of the client with respect to an item. The clients additionally depend on the information on the salesman as they have a propensity for guiding their questions to the sales rep (Wan, Evers Dresner, 2012). The nearness of viable information is required to answer the inquiries of the clients and make more transformations with respect to any issues related. The genuineness and the learned aptitudes are constantly valued by the clients just as the storekeepers. Proposals to improve business administration/tasks: The client support can likewise be improved by expanding the cooperations with the clients. The nearness of shared belief between the salesman and the clients helps in settling clashes all the more effectively and gives better answer for the clients (Ene Ozkaya, 2014). The need to hear is available in all the clients to coordinate their issue and questions and the sales reps need to hear them to cause the client to feel progressively welcome in the store. Subsequent to tackling the issue or inquiries of the clients, the store needs to determine the status of them to encourage solid relationship with them and guarantee that their unwaveringness lies with the store. By messaging the clients or by welcoming for an overview, the adequacy is constantly guaranteed. The store has to know the steadfastness of its clients (Heizer, 2016). The adjustment in conduct of a reliable client is portrayed by visit visits, less issues in managing a circumstance and additional time spent in the store. T he advancements for getting clients that are progressively faithful are to be remembered for the showcasing part of the store. Powerful studies and messaging for comfort is a viable system for getting more dependability from the clients. The steadfastness of the clients is additionally influenced by a few variables like the tidiness and appeal of the staff, supportive representatives (Mani, Kesavan Swaminathan, 2015). These angles are to be dissected and afterward successful arrangements are to be made in these boundaries to help increment the necessary result. The operational adequacy is a boundary, which consistently requires successful arranging and applying the progressions to build the method of doing the business. The operational productivity is the boundaries that ought to be checked as far as the stores. The various regions for applying the progressions are to be ensured and afterward the progressions are to be applied (Liu Ko, 2012). The geographic area assumes a significant job in the activity of the store. The necessities and inclinations of the clients are to be viewed as first and the items popular are to be considered to meet the prerequisites of the client, which will encourage viable activity. This sort of focused promoting and selling will assist the business with increasing (Vivek, Beatty Morgan, 2012). The region where the activity should be improved must be checked and improvement is to be application

Leadership and its impact on motivation and performance Essay Example

Administration and its effect on inspiration and execution Essay Presentation There is no perfect meaning of administration. 221 clarifications were given by Bass (2008): he featured the way that any single definition would do not have certain highlights (Van Wart, 2013). In this paper we think about the accompanying translations. The principal definition expresses that initiative is relational impact that is utilized for guiding others so as to accomplish certain objectives (Guetzkow, 1961). Henceforth, adequacy of a pioneer can be estimated by the degree of his supporters execution and inspiration to work. Authority can frequently be mistaken for the executives and organization: owever, it is apparent that only one out of every odd head (chief) is a pioneer and the other way around. Administration is about force, I. e. enthusiasm of the adherents to follow, while organization and the board about power vested in a people position. Likewise, the board just as organization is considered in this paper as support movement, though initiative for the most part manages change. Pioneers are individuals who shape the objectives, inspirations, and activities of others. Much of the time they start change to arrive at existing and new objectives Overseeing is keeping up productively and adequately current authoritative courses of action. While overseeing admirably regularly displays authority abilities, the general capacity is toward upkeep instead of progress (Bush, 2008). To summarize, direction on change and casual force are unmistakable highlights of initiative the creators of the paper base their further investigation on. Hypothetical ideas Nowadays there are a few hypotheses and models delivered by a great deal of studies, which dissect authority from various sides, for example, individual characteristics and initiative styles. We will compose a custom article test on Leadership and its effect on inspiration and execution explicitly for you for just $16.38 $13.9/page Request now We will compose a custom paper test on Leadership and its effect on inspiration and execution explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom exposition test on Leadership and its effect on inspiration and execution explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer The major hypothetical ideas can be summed up into 3 gatherings: attribute based models, situational/possibility models and practical administration models. Attribute based models The characteristic based hypothesis suggests that an individual must be a pioneer on the off chance that the individual in question is brought into the world with an uncommon blessing, I. e. extraordinary attributes or qualities without which a pioneer would not have the option to perform administrative capacities viably. The subject was exceptionally famous in the principal half of the twentieth century. The scientists attempted to discover relationship between's natural attributes and authority models, yet the outcomes were conflicting and indistinct. Mann in 1959 focused his investigation on seven character attributes: knowledge, alteration, extraversion, predominance, manliness, conservatism, and ensitivity (Zaccaro et al, 1991). Anyway the investigation made by Mann was not effective on the grounds that he found that no quality had a middle connection higher than . 25 with initiative rules (Zaccaro et al, 1991). The more productive research was made by Digman in 1990, who found a constructive connection among's character and authority. Digman assessed the pioneer by the accompanying character parameters: neuroticism, extraversion, receptiveness to experience, pleasantness, and honesty (Colbert et al, 2012). Anyway this examination despite everything didn't respond to certain inquiries concerning the connection among authority and character. Conduct models This models center around the manner in which pioneers carry on with subordinates. Contrasted with the past model, the accentuation was moved from the pioneers character to initiative itself. The model was explained by Blake and Mouton (1964) in The administrative lattice, and was planned for improving relational viability and advancement of authority abilities (Alvares et al. , 1976). The model suggests that a pioneers achievement is commonly founded on the worry for creation and the worry for individuals: the mix of the two highlights is the ideal system for authority achievement, hich makes subordinates increasingly inspired with their undertakings; feel critical to the organization; unmistakably comprehend the objectives; accomplish the elevated level of execution. (Alvares et al. 1976) Situational/possibility models as opposed to quality based model, situational/possibility approaches assume that there is no perfect initiative style and that the best style relies upon the circumstance, representatives mentalities, states of work, and so on. Authority style may and ought to conform to changes in the circumstance and just that way it would be successful. As it were, pi oneer must be adaptable. This model envelops the accompanying pproaches to authority. Three styles model Kurt Lewin (1890-1897) is advised to be the main clinician of his age (Burnes et al. 2013). Lewin presented the supposed field hypothesis, which expresses that people conduct relies upon the earth, field. He found that three styles win in administration conduct: equitable, dictator and free enterprise style. Dictator style is tied in with giving explicit errands and giving representatives direct guidelines about how and when they should function, all choices are made by the pioneer himself. Equitable style suggests that a pioneer coordinates the rocess less, fairly taking an interest in it, helping subordinates to take care of the issue and propelling them. Free enterprise authority is viewed as the most incapable. The quintessence of this style is that a pioneer neither takes part in cooperation, nor energizes workers. Supporters are allowed to pick their own arrangements and techniques, which should build their inventiveness. The aftereffects of his investigations show that law based gathering performs best, invigorating innovativeness from the individuals and decidedly influencing efficiency. Be that as it may, the gathering with tyrant style is a piece metal beneficial, however less innovative and, what is significant, less subordinates are happy with their Job. With respect to free enterprise gathering, it isn't powerful: essentially no inventiveness, horrible showing and little fulfillment are watched. Summing up Kurt Lewins discoveries we may manufacture a table (App. 1) of three styles and its consequences for inspiration and execution 00b fulfillment is incorporated, however it is out of our investigation scope). Anyway Kurts hypothesis was scrutinized for too slender way to deal with initiative styles that overlook different shades among dictator and law based conduct. Initiative continuum model That is the reason Tannenbaum and Schmidt offered their Leadership continuum model. The creators focused on the issue of joining majority rule and legitimate style exploiting the two methodologies. (Tannenbaum et al. , 1973) Tannenbaum and Schmidt presented the purported continuum of styles, where styles have various varieties from tyrant to just, and can be utilized by an individual in various circumstances (App. 2). A significant benchmark is hovered with red shading: from here to the privilege an administrator settles on choices simply in the wake of talking with the workers. The creators additionally referenced that separated from picking a suitable eadership style it is critical that your representatives comprehend the principles of the game, I. e. the style youVe picked. Claiming to tune in to representatives feeling while in reality settling on choices on your own not just crown jewels the connections between a business and their laborers however diminishes execution and inspiration. Fiedlers possibility model Fiedlers possibility model (1964) presumes that exhibition of gatherings is dependent upon the collaboration of initiative styles and the idealness of the circumstance for the pioneer. Mitchell et al. , 1970) Fiedler recommends that pioneers can be ivided into two classifications task-situated and human-arranged. Viability of the two classifications of initiative relies upon the assignment structure and the pioneers position power. For instance, task-arranged pioneers are increasingly successful in either simple or troublesome (unstructured) cir cumstances. Human-arranged pioneers perform best in medium trouble circumstances. Way objective hypothesis The hypothesis was explained by Georgopoulos et al. (1957) and House. The model gives specific consideration to the subordinates desires. House, 1971) It expresses that administration is capable of defining clear objectives, explaining ways for accomplishing oals, actualizing reward frameworks dependent on accomplishing better (Mulki et al. , 2009). House contrived 4 authority styles relying upon the sort of work, adherents qualities and their desires: order, steady, participative and accomplishment situated. 1) Directive style (if there should arise an occurrence of unstructured, yet intriguing assignments and unpracticed supporters) clear clarification and direction on what representatives ought to do. ) Supportive style (when assignments are straightforward, bunch union is poor, however laborers are experienced) pioneer ought to improve the working environment and bolster th e laborers. ) Participative style (unstructured and complex undertakings, experienced specialists) pioneer ought to counsel supporters and tune in to their suppositions. 4) Achievement-arranged style (Unstructured, complex assignments, experienced laborers, who think they need capacity to achieve task) pioneer ought to rouse and empower supporters. Situational model The writers of the situational model (Hersey, Blanchard, 1969) assume that one ought to pick initiative style simply after he/she surveyed the representatives status to play out a particular assignment and adjust authority styles to evolving condition. (Steward et al. 1991) Situational Leadership Theory centers around two angles: (1) ability and (2) certainty and duty. These two might be high or low (App. 3), and pioneer should make accentuation on either assignment or relationship perspective relying upon the circumstance. Four edge model The last model in th

Finals Week at MIT

Finals Week at MIT Its finals week! That dreaded time of year when people hide away in their rooms and in the libraries and delve into deep bouts of sadness.  The cats are taking the hit from it the most weve spent a lot of time using them for therapy and squishing them or putting them in funny places to make us feel better. However, there are some nice things about finals week.  My hall has a lot of really awesome traditions, and the seniors started a new tradition this year. They made a senior gift for the underclassmen! They spent hours and hours and days making us a Tetazoo card game, and they gave us each a card with our name and super powers on it. My card gives me special Medlink powers, and my quote is Let me go get my camera! Every semester on the Sunday before finals week, my hall also has another tradition called Cookies and Pooh.  We make cookies, serve milk, and read Winnie the Pooh. However, this year, we read Little Prince. So it became, Cookies and Little Prince.  Some people insisted on reading their parts in French when it was their turn to read from the book as we passed it around. They say it sounds better in French but I didnt understand a word of it. I guess it sounded pretty? Another tradition is Finals Pasta! Each night of finals week starting on Sunday, a resident who doesnt have a final the next day makes a pasta dish (or another form of food that we still call pasta, like chili) for the whole hall. Kate R. 14 has been making us food the past couple days, and it has been wonderful. Yesterday she made chili, and tonight, we had Jambalaya! Im going to make veggie lasagna on Wednesday. We also have a finals board, which is the white board in our lounge where people put their name, room number, and the time they have to be up in the morning. Usually there is also a really important question on the board for residents to fill out (Favorite Tetazoo resident? Where did you hide the bodies? What is your favorite food?). The first person who wakes up (which is usually someone who was up the whole night) has the duty to wake up the next person who needs to be up, who then wakes up the next person who has to be up, and so on! And unless the person physically comes to the lounge to cross off their name, we keep knocking on their door. Nobody sleeps through finals here on Tetazoo (well hunt you down!). Also, a really awesome thing that is done in all the dorms across campus is finals breakfast.  Each day, our wonderful GRTs and the fantastic baby Marie make us a really yummy breakfast with a different theme. Today we made breakfast burritos, and there are always little Juicy Juice boxes! I love Juicy Juice! I always claim that Juicy Juice is what gets me through finals in the end. Juicy Juice is very important. I love Juicy Juice. Additionally, Medlinks hand out finals breakfast every day in the Z center, which is the location of most finals.  We give out bagels and bananas, and it really helps those people who want a snack during their final or who didnt get a chance to catch finals breakfast at home.  This way, we can ensure that people are eating at least once a day. MIT is really supportive during finals time. This is one of the most stressful times of the year, but were getting through it. Together :)

The Journal Of The Elaine Race Riots - 980 Words

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Current Sne in Kenya - 2665 Words

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Recent Changes in Monetary Policy in Pakistan Free Essays

{text:bookmark} {text:toc-mark-start} PAKISTAN ECONOMIC POLICY {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} DATED: *15TH* DECEMBER 2009 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted To: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Sir Ashraf Janjua {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Submitted By: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Nimra Anjum {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Rakana Payam {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} text:bookmark} {text:toc-mark-start} *Sheema H*asanat {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} ACKNOWLEDGEMENT {text:toc-mark-end} We would like to give our special thanks to our Pakistan Economic Policy teacher, Mr. Ashraf Janjua for giving us this opportunity to work and have an insight of the our country’s economy, also to let us interpret our learning in a real situation. We thank him for the assist ance through out this project. We will write a custom essay sample on Recent Changes in Monetary Policy in Pakistan or any similar topic only for you Order Now Table of Contents MONETARY POLICY Monetary policy is the regulation of volume of money supply, by the central bank in order to achieve relative price stability. If the economy is heating up then the Central bank can increase the bank rate or the reserve requirement. Whereas when there is recession, then the bank rate is reduced. Instruments for the Regulation of Money Supply Open market operations. Cash Reserve requirement Statutory Liquidity Ratio Credit Ceiling Open market operations: It is the buying and selling of government securities. If the M. S is high then the securities are sold so that people buy it and money goes to the SBP and if the M. S is low then you buy securities in this way Money supply increases. Cash Reserve Requirement: It is a requirement in which all the commercial bank have to keep a percentage of cash with the SBP. Currently, it is around 7%. Statutory Liquidity Ratio: It is a requirement in which each bank has to maintain a certain reserve requirement to strengthen their liquidity position. Credit Ceiling: It is the fixation of the upper limit; quotas are assigned to different banks. Components of Money text:bookmark} {text:toc-mark-start} Mo is the resource money and comprises of: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Currency in circulation {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Bank’s Reserve with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Other deposits with the SBP {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Cash in the tills of the Bank {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M1= Currency in circulation + Demand deposits with scheduled banks + other deposits with SBP. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} M2=M1 + time deposits with the scheduled banks. Technically, M2 is called Monetary Assets M1 is called Money Supply. {text:toc-mark-end} How is Money Created? {text:bookmark} {text:toc-mark-start} There are three sources of creating money: {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Net Credit creation by the central Bank (SBP): Credit extended during a period minus recoveries. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1 and 2 are called net Bank credit. Credit is always on the Asset side of Banks. When this credit is used by issuing cheques end up with bank (either the same bank/or any other bank). These cheques are deposits, and are on the liability side of the banks. These deposits/liabilities become money/monetary Assets, and are equal to the credit created by the Banking System. {text:toc-mark-end} How Much Money can be Created? {text:bookmark} {text:toc-mark-start} The share of currency in circulation in Mo and, {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Level of cash in tills and commercial banks reserves with SBP as a % of Mo. text:toc-mark-end} {text:bookmark} {text:toc-mark-start} The higher the value of either of these amounts with respect to M2, the lower the Money Multiplier. {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} 1/c + r (1-c) {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} C= the ratio b/w CIC + other deposits with SBP and M2 {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} R= Cash assets of Scheduled banks: Ca sh in tills of commercial banks + reserves with SBP. {text:toc-mark-end} DOES MONETARY POLICY PLAY EFFECTIVE ROLE IN CONTROLLING INFLATION IN PAKISTAN? Introduction text:bookmark} {text:toc-mark-start} Inflation is politically costly for the government (Haque and {text:toc-mark-end} Salient Features of the Monetary Policy {draw:frame} {draw:frame} {draw:frame} Instruments of Monetary Policy {text:bookmark} {text:toc-mark-start} Cash Reserve Requirement {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} {draw:frame} {text:toc-mark-end} {text:bookmark} {text:toc-mark-start} Discount Rate {text:toc-mark-end} {draw:frame} INFLATION TREND IN PAKISTAN (2004-2009) According to the State Bank of Pakistan, the core inflation in the year (2005) was 8. per cent which has almost doubled since the last year (2004) in which the inflation rate was 3. 8 per cent. During this year the non-governmental borrowing increased by 30 per cent. The two main reasons for high inflation during this peri od were because of excessive government borrowings and the price of wheat. According to the State Bank of Pakistan, government estimated that the inflation rate in the next year would range between 7. 7 and 8. 3 per cent. During the year (2006) there was a decrease in the total inflation of the country (general and food) from 9. 3 to 7. 9 per cent and 12. 5 per cent to 6. per cent respectively. The government took several major steps to bring the inflation down during this year as well by tightening the monetary policy and augmenting the supply of essential commodities through liberalization of import regime. As a result the general inflation declined from 9. 3 per cent (2004-05) to 7. 9 per cent (2005-06) the non-governmental borrowing in the year 2006 became 23 per cent. During 2007 the core inflation reduced from 7. 5 per cent to 5. 9 per cent, due to tight monetary policy. According to the SBP the food inflation increased from 6. 9 per cent (2006) to 10. per cent (2007) because of supply side constraints in which the prices of some key food staples (including wheat, rice, vegetable, ghee etc,) were increased. Where as comparatively the non-food prices grew at a slower pace since last year and the general Inflation (CPI) declined from 7. 9 per cent to 7. 8 per cent. The inflationary trend in the food prices during the year (2008) increased to 17. 6 per cent as compared to the last year in which the food inflation was 10. 3 per cent, affecting people living standards of low and fixed income groups. The non-food inflation had the same increasing trend as in the year (2007), which was 6. per cent and during the year (2008) was 7. 9 per cent. Although the core inflation was reduced to 5. 9 per cent but during this year it went back to 8. 4 per cent because of the global increase in some commodity, higher utility tariff and by local supply and demand driven prices. Inflation during (2008) indicates that the prices of a few commodities (18) essential food items registered sharp increase particularly during the second half of the fiscal year (2008). Other significant contributors to (2008) upward inflationary trend included house rent, which is the index that measures the cost of construction in Pakistan, racing to 11. per cent by April (2008). The current fiscal year commenced with ease in headlines compared to the same month of previous fiscal year. The consumer price inflation annually was 11. 2 per cent during July (2009) as against 24. 3 per cent in July (2008) and 13. 1 per cent in the previous month. A major increase in the core inflation was witnessed in July (2009) of 17. 6 per cent as compared to July (2008) 8. 4 per cent. The food inflation increased by 6. 1 per cent during this fiscal year. The main reason for this high inflation was due to low export growth relative to import, high oil prices and inadequate foreign apital inflow. Conclusively, one can say that inflation adversely affects the overall economic growth, the financi al sector development and exploit the vulnerable poor segments of the population. Inflation also decreases the real income and induces uncertainty. Considering such undesirable impacts of inflation on the economy, there’s a consensus among the world leading central banks that the price stability is going to be the prime objective of monetary policy and the central banks are committed to lower the inflation in the economy. Hence the State bank of Pakistan should adopt inflation as their main focus of monetary policy, by targeting inflation explicitly or implicitly as and when required. EFFECTIVENESS OF MONETARY POLICY STATEMENT IN PAKISTAN Economic policies aim to increase the welfare of the general public and monetary policy supports this broad objective by focusing its efforts to promote price stability. Embedded in this objective is the belief that persistent inflation would compromise the long term economic prospects of the country. The objective of monetary policy in Pakistan, as laid down in the SBP Act of 1956, is to achieve the targets of inflation and growth set annually by the government. In pursuit of this mandate, SBP formulates the country’s monetary policy that is consistent with these announced targets. In my remarks today, I plan to provide perspective on: First, why central banks focus on price stability? Second, how the monetary policy transmission mechanisms work? Third, what are the principal features of Pakistan’s monetary policy framework? Fourth, selected thoughts on effectiveness of Pakistan’s monetary policy framework Finally, what measures are needed to improve the effectiveness of the monetary policy framework in Pakistan? These questions have been a subject of much debate lately, as monetary tightening – an inevitable policy response for regaining macroeconomic stability – has aroused anxiety but better public understanding of this question will help them to appreciate central bank’s monetary policy stance. Why Focus on Price Stability? Monetary Policy Transmission Mechanism The monetary transmission mechanism refers to a process through which monetary policy decisions affect the level of economic activity in the economy and the inflation rate. Understanding the transmission mechanism of monetary policy is crucial for appropriate design and efficient conduct of monetary policy. As monetary policy actions affect policy variables with a considerable lag and with high degree of variability and uncertainty, it is important to predict the possible impact and extent of monetary policy actions on the real variables. Thus, by its very nature, monetary policy tends to be forward-looking. It is also important to know which transmission channels are more effective in terms of transmitting changes in monetary policy actions to ultimate policy goals. Since various financial sector developments particularly regarding introduction of new financial products, technological changes, institutional strengthening, and expectations about future policy, etc can potentially change economic effects of the monetary policy measures, there is a need to regularly update, empirically test and reinterpret monetary policy transmission channels. The impact of monetary policy is perceived to transmit in to the real economic activity through five channels. †¢ The first channel and most widely studied and understood channel of monetary policy transmission relies on the link between changes in the short-term nominal interest rate (induced by changes in the policy rate) and the long-term real interest rate that ultimately affect components of aggregate demand such as consumption and investment in an economy. As such, it is the changes in the long-term real interest rates that have its impact on aggregate consumption, business investment and other components of aggregate demand. †¢ The second channel, known as the credit channel, involves changes in monetary policy that not only affects the ability of firms to borrow money (by affecting their net worth) but also affects the ability of banks to lend money. The strength of this channel depends on the degree to which the central bank has allowed banks to extend loans and the dependence of borrowers on bank loans. These factors are clearly influenced by the structure of the financial system and its regulation. †¢ The third channel of monetary policy transmission focuses on asset prices (other than the interest rate) such as the market value of securities (bonds and equities) and prices of real estate. A policy-induced change in the nominal interest rate affects the price of bonds and stocks that may change the market value of firms relative to the replacement cost of capital, affecting investment. Moreover, a change in the prices of securities entails a change in wealth which can affect the consumption of households. Fourth, a policy-induced change in the domestic interest rate also affects the exchange rate that in turn affects the foreign financial flows, net exports and thus aggregate demand. The strength of the exchange rate channel depends on the responsiveness of the exchange rate to monetary shocks, the degree of openness of the economy, sensitivity of foreign private inflows and n et exports to exchange rate variations, and the net worth of firms and thus their borrowing capacity if they have taken exposure to foreign currency. Moreover, exchange rate changes lead to changes in the domestic price of imported consumption goods and imported production inputs affecting inflation directly. †¢ Since expectations influence the inflation dynamics, there is a fifth channel that is based on the economic agents’ expectations of the future prospects of the economy and likely stance of the monetary policy. According to this ‘expectations channel’, most economic variables are determined in a forward-looking manner and are affected by the expected onetary policy actions. Thus, a consistent, credible, and transparent monetary policy can potentially affect the likely path of the economy by simply affecting expectations. Monetary Policy Framework in Pakistan Considering the economic and financial market structure in Pakistan, SBP has for sometime pursued a monetary targeting regime with broad money supply (M2) as a nominal anchor to achieve the objective of controlling inflation without any prejudic e to growth. The process of monetary policy formulation usually begins at the start of the fiscal year when SBP sets a target of M2 growth in line with government’s targets of inflation and growth (usually in the month of May) and an estimation of money demand in the economy. The basic idea is to keep the money supply close to its estimated demand level, as both a significant excess and a shortfall may lead to considerable deviations in actual outcomes of inflation and real GDP growth from their respective targets. Underlying this framework are two strong assumptions: first, there is a strong and reliable relationship between the goal variable (inflation or real GDP) and M2; and second, the SBP can control growth in M2. While containing the M2 growth close to its target level is the key consideration in the current monetary framework, the composition of the money supply does matter and at times requires policy actions even if these actions lead to a deviation in monetary growth from its target level. To understand this point, it is necessary to know the major components of money supply and their relative importance. Net foreign Assets (NFA) and Net Domestic Assets (NDA) of the banking system are the two major components of money supply. The NFA is the excess of foreign exchange inflows over outflows to the banking system, or in other terms it is a reflection of underlying trends in the country’s external Balance of Payment (BoP) position. It is estimated by the projected values of all major external transactions such trade, workers’ remittances; debt servicing, foreign investment, and debt flows etc. The NDA of the banking system, which primarily consists of credit to the government and the private sector, reflects changes in the fiscal and the real sectors of the economy, If is estimated as a residual of M2 and the NFA. Further break-up of NDA is estimated on the basis of projected credit needs of the government and the private sector. NOW coming to the importance of these components of the money supply, depletion in NFA is generally considered as an unhealthy development. Sharp NFA depletion reflects worsening BOP position and a pressure on exchange rate. In such a case, a higher NDA growth, though helps in expanding M2 to reach ifs target level, may further deteriorate external accounts, sharper depreciation of local currency, and higher depletion of country’s foreign exchange reserves. Although since FY07, only the indicative M2 growth target is being announced, SBP also takes into consideration the causative factors for monetary expansion while pursing this target. Considering the changes in monetary aggregates and other economic variables, the changes in monetary policy are signaled through adjustments in the policy discount rate (3-day repo rate). Further, the changes in the policy rate are complemented by appropriate liquidity management mainly through Open Market Operations (OMOs) and if required changes in the Cash Reserve Requirement (CRR) and Statutory Liquid Reserve requirement (SLR) are also made. † Significance of various channels that transmit the monetary policy shocks in Pakistan to the real economy has been analyzed by few economists. Ahmad et al. (2005) found that credit channel is the most ‘important conduit for transmitting monetary policy actions to the real economic activity. Evidence confirms transmission through the active asset price channel and exchange rate channel. According to this study, monetary policy shocks impact real output after a lag of 7 to 11 months. Tasneem and Waheed (2006), on the other hand, investigated whether different sectors of the economy respond differently to monetary shocks. The presence of sector wise differences in the monetary transmission mechanism has profound implications for macroeconomic management as the central bank then has to weigh the varying consequences of its actions on different sectors. Investigating the transmission of changes in interest rate to seven sub sectors of the economy, the authors found evidence supporting sector-specific variation in the real effects of monetary policy. They found that the interest rate shock on manufacturing, wholesale and retail trade, and finance and insurance sectors transmit after a lag of 6 to 12 months. On the other hand, monetary policy shocks have negligible impact on agriculture, mining and quarrying, construction and ownership of dwelling sectors. Generally, historical evidence does reflect that Pakistan has been a high inflation and high interest economy given its inherent structural weaknesses. The role and effectiveness of monetary policy appears more visible in the 2000s when financial sector reforms started bearing fruits in terms of a more market based money and foreign exchange markets. Entering the 21sf century, the loose monetary policy stance in the face of low inflation, low growth and low twin deficits, along with structural measures to open up the economy and alleviate some first round constraints, triggered the economy on a long-term growth trajectory of above 7 percent. Monetary policy stance was however altered as the inflationary pressures started to build up in 2005. At the end of the fiscal year, the economy, which had been showing sustained steady growth since FY01, registered a historically high level of growth (9 percent), average inflation rose sharply (9. percent) and the external current account balance turned into deficit (-1. 4 percent of GDP) Coinciding with these developments, the fiscal module started to show signs of stress as the fiscal balance was converted into a deficit and the stock of external debt and liabilities, which had been declining since FY00 after the Paris Club rescheduling, began increasing. These indicators largely capture t he high and growing aggregate demand in the economy on account of sustained increase in peoples’ income. With the emerging domestic and global price pressures, SBP tightened its monetary policy after a prolonged gap of a few years. The efforts to rein-in inflation, however, proved less effective due to a rebound in international commodity prices and a rise in domestic food prices later on. The rise in the international commodity prices, particularly oil, exacerbated the fight against inflation. The international oil prices (Arabian Light) rose from US$27. 1 at end 2004 to US$50. 9 at end 2006, whereas international food prices rose by 24, 24 and 21 percent during 2004, 2005 and 2006 respectively. Realizing the complications of monetary management and adverse global and domestic economic developments, the implementation of SBP monetary policy during FY06 varied significantly from the preceding fiscal years. In addition to the rise in the policy rate, the central bank focused on the short-end of the yield curve, draining excess liquidity from the interbank money market and pushing up short-tenor rates. Consequently, not only did the overnight rates remain close to the discount rate through most of the year, the volatility in these rates also declined. These tight monetary conditions along with the Government’s administrative measures to control food inflation helped in scaling down average inflation from 9. 3 percent in FY05 to 7. 9 percent in FY06, within the 8. 0 percent annual target. This was certainly an encouraging development, particularly as if was achieved without affecting economic growth as the real GDP growth remained strong at 6. 6 percent in FY06. Further Strengthening of Tight Monetary Policy For FY07, the government set an inflation target of 6. 5 percent. To achieve this, a further moderation in aggregate demand during FY07 was required as the core inflation witnessed a relatively smaller decline in FY06, indicating that demand-side inflationary pressures were strong. In this perspective, SBP further tightened its monetary policy in July 2006 raising the CRR and SLR for the scheduled banks; and its policy rate by 50 basis points (bps) to 9. 5 percent. Moreover, proactive liquidity management helped in transmitting the monetary tightening signals to key interest rates in the economy. For instance, the Karachi Inter Bank Offer Rate (KIBOR) of 6 months tenor increased from 9. 6 percent in June 2006 to 10. 02 percent at end-June 2007 and the banks’ weighted average lending and deposits rates (on outstanding amount) increased by 0. 93 percentage points and 1. 1 percentage points, respectively, during FY07. In retrospect, it appears evident that monetary tightening in FY07 did not put any adverse impact on economic growth, as not only was the real GDP growth target of 7. 0 percent for FY07 was met, the growth was quite broad based. At the same time, the impact of the monetary tightening was most evident in the continued deceleration in core inflation during FY07. One measure of core inflation, the non-food non-energy CPI, continued its downtrend from YoY high of 7. 8 percent in October 2005, to 6. 3 percent at end-FY06, and to 5. 1 percent by the end of FY07. However, much of the gains from the tight monetary policy on overall CPI inflation were offset by the unexpected rise in food inflation. On the downside, however, broad money supply (M2) grew by 19. 3 percent during FY07, exceeding the annual target by 5. percentage points. Slippages in money supply growth largely stemmed from an expansion in NFA due to the higher than expected foreign exchange inflows. Equally stressful was the impact of Government borrowings from the central bank during the course of the year. The pressure from the fiscal account was due to mismatch in its external budgetary inflows and expenditures. With the privatization inflows and th e receipts from a sovereign debt offering at end-FY07, the Government managed to end the year with retirement of central bank borrowings, on the margin. By end-FYO7, SBP holdings of government papers were still around Rs 452 billion, despite a net retirement of Rs 56. 0 billion during the year. Another major aberration in FY07 emanated from the high level of SBP refinancing extended, for both working capital and long-term investment, to exporters. Aside from monetary management complexities, these schemes have been distorting the incentive structure in the economy. FY08 and Beginning of FY09: More Challenging FY08 was an exceptionally difficult year. The domestic macroeconomic and political vulnerabilities coupled with a very challenging global environment caused slippages in macroeconomic targets by a wide margin. After a relatively long period of macroeconomic stability and prosperity, the global economy faced multifarious challenges: (i) hit by the sub prime mortgage crisis in U. S in 2007, the international financial markets had been in turmoil, the impact of which was felt across markets and continents; (ii) rising global commodity prices, with crude oil and food staples prices skyrocketing; and (iii) a gradual slide in the U. S dollar against major currencies. Combination of these events induced a degree of recessionary tendencies and inflationary pressures across developed and developing countries. Policy-makers were gripped with the dual challenge of slowdown in growth and unprecedented rising inflationary pressures. Central bankers faced a demanding task of weighing the trade-off between growth and price stability. With the exception of few developed countries, most central banks showed a strong bias towards addressing the risk of inflation and responded with tightening of monetary policies. On the domestic front, the external current account deficit and fiscal deficit widened considerably to unsustainable level (8. 4 and 7. 4 percent of GDP). The subsidy payments worth Rs 407 billion by Government, which account for almost half of the fiscal deficit, shielded domestic consumers from high international POL and commodity prices and distorted the natural demand adjustment mechanism. While the government passed on price increase to consumers, the rising international oil and other importable prices continued to take a toll on the economy. Rising demand has cost the country dearly in terms of foreign exchange spent on importing large volumes of these commodities. Rising fiscal deficit and lower than required financing flows resulted in exceptional recourse of the Government to the highly inflationary central bank borrowing for financing deficit. At the same time the surge in imports persisted. As a result, inflation accelerated and its expectations strengthened due to pass through of international oil prices to the domestic market, increases in the electricity tariff and the general sales tax, and rising exchange rate depreciation. These developments resulted in a further rise in headline as well as core inflation (20 percent weighted trimmed measure) to 25 percent and 21. 7 percent respectively in October 2008. Considering the size of macroeconomic imbalances and the emerging inflationary pressures, SBP remained committed to achieve price stability over the medium term and thus had to launch steeper monetary tightening to tame the demand pressures and restore macroeconomic stability in FY09. SBP thus increased the policy rate from 13. 5 to 15%. What Needs to be Done to Improve the Effectiveness of Monetary Policy? Apart from taking policy measures to address the emerging challenges, SBP also introduced structural changes in the process of monetary policy formulation and conduct to make the monetary policy formulation and implementation more transparent, efficient, and effective. Specifically, during the last couple of years, SBP focused on †¢ Institutionalizing the process of policy formulation and conduct †¢ Stepping up movement towards a more market based credit allocation mechanism Developing its analytical and operational capacity †¢ Improving its capabilities to assess future developments to act proactively and †¢ Improving upon the communication of policy stance to the general public. However, the following areas need attention and are keys or effective monetary management. 1. Effectiveness of monetary and fiscal co-ordination would be helpful. Section 9A and 9B of the SBP Act (amended in 1994) art iculates the institutional mechanism for economic policy making and co-ordination and defines the ground rules for both the process and the policy making. However, the track record of the Monetary and Fiscal Policies Co-ordination Board (MFPCB), established in February 1994 that requires quarterly meetings of the SBP and the government, has been less than satisfactory. Furthermore, the sequencing of economy-wide projections is done in isolation of the budget and monetary policy making process, and the budget making process has not respected the monetary compulsions. With rising spending and stagnating revenues, the budget assumes at the start of the year certain recourse to the central bank rather than treat it as mere ways and means advances. . For effective analysis of developments and policy making, timely and quality information is extremely important. However, due to weaknesses in the data collection and reporting mechanism of the various agencies of the country, information is not available with desired frequency and timeliness. Also there are concerns over the quality of data. Unlike many developed and developing countries, data on quarterly GDP, employment and wages, etc is not available in case of Pakistan. Moreover, the data on key macroeconomic variables (such as government expenditure and revenue, output of large-scale manufacturing, crop estimates, etc) is usually available with substantial lags. This constrains an in-depth analysis of the current economic situation and evolving trends, and hinders the ability of the SBP to develop a forward-looking policy stance. 3. Unlike many countries, both developed and developing, there is no prescribed limit on government borrowing from SBP defined in the SBP Act or the Fiscal Responsibility and Debt Limitation (FRDL) Act 2005. Besides being highly inflationary, government borrowing from SBP also complicates liquidity management. Borrowing from the central bank injects liquidity in the system through increased currency in circulation and deposits of the government with the banks. In both cases, the impact of tight monetary stance is diluted as this automatic creation of money increases money supply without any prior notice. Moreover, access to potentially unlimited borrowings from the SBP provides little incentives to the government to put the fiscal accounts in order. Therefore, the foremost task to improve the effectiveness of monetary policy is to prohibit the practice of government borrowings from the SBP. In this regard, appropriate provisions are required to cease or limit government recourse to central bank financing through amendments in the SBP Act and the FRDL Act 2005. 4. Another issue is to make a clear distinction between exchange rate management and monetary management. Currently, there is a general perception that the State Bank is bound to keep the exchange rate at some predefined level and any movement away from this level is then considered as an inefficiency of the SBP. There is a need to understand that for an open economy, it is impossible to pursue an independent monetary and exchange rate policy as well as allowing capital to move freely across the border. Since the SBP endeavors to achieve price stability through achieving monetary targets by changes in the policy rate, it is not possible to maintain exchange rates at some level with free capital mobility. This can only be achieved by putting complete restrictions on capital movements, which is not possible. SBP’s responsibility is to ensure an environment where foreign exchange flows are driven by economic fundamental and are not misguided by rent seeking speculation. 5. Finally, based on experience particularly gained during the last two months is to differentiate between liquidity management and monetary policy stance. Recently, when the banking system experienced extraordinary stress due to shallow liquidity in the system, rumor mongering heightened the general public anxiety over few banks’ sustainability. Consequently, the SBP had to intervene in the market by injecting ample liquidity through various measures. In some quarters, these changes were deemed as a change in the bank’s tight monetary policy stance. However, this was not the case and the bank had to clearly and repeatedly communicate that the existing stance is being continued. Later on, the bank further tightened its monetary policy. It must be understood that quite often, liquidity management can drive the market interest rates away from the direction desired under the monetary policy stance. However, this has to be temporary and ‘the interest rates are bound to move in the policy stance direction. To resolve this issue, the SBP is studying various options, including the introduction of a â€Å"Standing Deposit Facility† to keep the interbank rate within a corridor. In conclusion, it is imperative that above steps be taken urgently. Over the period, however, this needs to be complemented with much deeper structural reforms to synchronize and reform the medium term planning for the budget and monetary policy formulation process Several studies and technical assistance have provided extensive guidance in this area, but the lack of capacities and short term compulsions have often withheld such reforms. What is important is to recognize that a medium term development strategy, independently worked out, would help minimize one agency interest which has often been a source of co-ordination difficulties. It would also help the budget making process more rule based than the incrementally driven process to satisfy conflicting demands. THE RECENT DEVELOPMENTS IN MONETARY POLICY (2007-2009) The SBP has kept its tight monetary policy stance in the period July 01, 2008-April 20, 2009. The policy rate was adjusted upward in November 2008 to shave-off some aggregate demand from the economy and kept constant in January 2009. However, noticing visible signs of demand compression enabled the SBP to reduce 100 basis points on April 20, 2009. During July 01, 2008-April 18, 2009, money supply (M2) expanded by 1. 6 percent against the target of expansion of 8. 0 percent for the year and last year expansion of 8. 1 percent in the comparable period of last year. The reserve money witnessed contraction of 2. 2 percent in this period as against expansion of 10. 3 percent in the comparable period of last year. Net domestic assets (NDA) have increased by Rs. 307 billion as compared to increase of Rs. 627. 5billion in last year. However, it is showing an increase of 7. 6 percent in stock during this period, whereas, last year the growth in stock was 20. 4 percent in the comparable period. Net foreign assets (NFA) have recorded a contraction of Rs. 263. 9 billion against the contraction of Rs. 356. 4 billion in the comparable of last year [See Table-6]. {draw:frame} Government borrowing for budgetary support has recorded an increase of Rs. 240. 5 billion as compared to Rs. 336. 0 billion in the comparable period of the last year. The government has over performed against freezing the net borrowing from SBP at Rs. 57 billion in 2008-09 and the SBP financing has shown a net increase of Rs. 103. 3 billion and financing from scheduled banks witnessed a net increase of Rs. 137. 2 billion during July 01, 2008-April 18, 2009. Credit to private sector witnessed a net increase of Rs. 55. 4 billion during July 01, 2008-April 18, 2009 as compared to Rs. 359. 7 billion in the comparable period of last year. The stocks st ill went up by 9. 1 percent. SBP undertook aggressive monetary tightening during the period, further increasing the policy rate by 300 bps in two rounds. On a cumulative basis, this means a 550 bps increase during the last 18 months up to March 2009. However, the policy rate was decreased by 100 bps on April 20, 2009. These policy measures were in response to carryover of macroeconomic stresses of the preceding year and increase in real aggregate demand. Monetary tightening has worked in the right direction. Weighted average lending rate have witnessed slight decline from 15. 5 percent in October 2008 to 14. 8 percent in February 2009. Weighted average deposit rate on the other hand has increased from 6. 2 percent in October 2008 to 7. percent in February 2009 which implies narrowing of the spread amidst intensive deposit mobilization efforts on the part of the banks. The weighted average yields on 6 months T-bill has declined by almost 250 basis points to 11. 5 percent in March 2009 as against 14 percent in November and December 2008 [See Fig-2]. {draw:frame} Recent Discount Rate in Pakistan (2007-2009) During 2007-08, the SBP contin ued with tight monetary policy stance, thrice raising the discount rate and increased the Cash Reserve requirement (CRR) and Statutory Liquidity Requirement (SLR). In the light of continued inflationary buildup and increasing pressures in the foreign exchange market, the SBP announced a package of monetary measures on May 21, 2008 that included;(i) an increase of 150 bps in discount rate to 12 percent; (ii) an increase of 100 bps in CRR and SLR to 9 percent and 19 percent, respectively for banking institutions (iii) introduction of a margin requirement for the opening of letter of credit for imports (excluding food and oil) of 35percent, and (iv) establishment of a floor of 5percent on the rate of return on profit and loss sharing and saving accounts. The year 2008-09 is characterized by a reduction in CRR by 2 percent in two equal phases to help the liquidity issues of the banking system. Later on, the SBP announced a 200 bps hike in discount rate to 15 per cent on November 12, 2008 in response to persistent hike in core inflation and current account deficit in a last ditch effort to demand compression. Following a slight reversal in the mounting inflationary and demand pressures, the SBP announced a downward adjustment of policy rate by 100 bps on April 20, 2009. SBP’s tight monetary policy and rationalization of fiscal subsidies and expenditure controls are the key factors that contributed a reasonable progress towards macroeconomic stability. The private consumption grew by 5. 2 percent in real term during 2008-09 which implies that notwithstanding substantial reduction in the fiscal and current account deficits, demand pressures are still confronting monetary management. {draw:frame} How to cite Recent Changes in Monetary Policy in Pakistan, Papers

Good Will Is Good Design By Paul Rand †Myassignmenthelp.Com

Question: How To Good Will Is Good Design By Paul Rand? Answer: Introduction Paul is basically one of the best, popular and famous legends of art and graphic designs. He is known for his tremendous communication and business ideas that were related to art and designing. Back then, Paul argued that good design can be termed as good will. Apparently, he viewed art and designs of either pictures or anything else as personal opinion with emotional connection. Paul viewed the artistic and design activities as simple visual communications that are rare but effective for communication purposes. In his book of Good design, Good will, he insists on the fact that an artist should be aware of the principles that are put in place to guide him/her in their artistic activities. They artists should be able to illustrate their opinions whether in commercial forms or just for leisure. This also means that the artist should be in a position to show the level of their wisdom and be guided as well as controlled by the basic techniques used in artistic and designing practices (Pr eston et al, 2014). In addition to that, Paul though that art and design are symbolized by beauty and simplicity of a picture or symbol that is given by a creative or talented individual. Therefore, the design though should certainly b clear and simple to be able to fulfill Pauls argument. Also in that case, it is very important for individuals participating in the artistic and designing works or jobs are willing to take risks to be able to imagine and vision their idea as being real and tangible (Aakhus et al, 2015). Therefore, with the fact that designs and arts are the clear imagination, view and opinion of an individual, then Pauls good design is good will is clearly relevant and relates to the exact idea. Apparently, they both represent the same arguments and facts that are used to support their arguments. Section One The main ideas from the manifesto is that the artistic and designing work represents the personal ideas and views of an individual. This means that they are never corrupted or edited form and therefore are able to give the best results. This included things like emotion expression, individuals own view of a situation, personal objective or aim of the work art or design to name a few things. In addition to that, the artistic and design work is guided by some set of principles which should be followed by the designers for them to be successful. These principles should be able to protect the individual work and keep it private and protected. Also, some other main ides from the good design good will design is the fact that the art or design work originated entirely from an individuals mind and thought (McAuley et al, 2015). This is in relation to the persons wisdom and creativity that gives birth to very simple, clear and beautiful results. Therefore, at most times, the art and design wo rks are meant to attract people especially when it comes to commercial purposes. The main ideas on this manifesto did not necessarily suggest new ways or methods or work practices but rather backed up every art and design work. This is by insisting that such work is a persons personal view, idea and wisdom. They are used by designers and artists to express emotions or own views on certain live aspects. However, they are also used for commercial purposes where by in this case they should be guided by protection principles should be implemented. Therefore, no the main ides in this manifesto are clearly in relation to the previous ones as well as the current art and design ideas and views. The publication at that time was pretty important for every artists and designer. The book good design, good will by Paul became a changing aspect of most artists and designers simply because it offered great deal of ideas, knowledge and information to be learnt. Apparently, in those days, the 19th Centuries, the technology had not really developed to the extent of learning and viewing art and design work as meaningful work. Paul took much effort to insist and prove that art work is worth everything in almost everybodys life. This is simply because it indicates real life imaginations, views and opinions of the individual doing it. Therefore, it should also become a simple way for everybody to express their own views on different matters of life. In that case, Pauls book became an inspirational aspect for most people. These included even the people who did not know whether they were talented or not. However, the fact that art can be learnt, then the artists at that time really increas ed in numbers. The visual communication was improved by a very long shot and creativity for art and design work grew as well (Thomas et al, 2013). In addition to that, many peoples creativity levels also improved especially in other different life sectors like the commercial and economic aspects. Section Two My chosen designer is Paul Rand who is a very popular and well-known artist and designer of various things at his time. Basically, he is known by most designers and artists as a legend simply because he left a lot of knowledge, wisdom, art and design evidence to prove that good design is good will. Just as earlier mentioned, Paul believed that art and design work are entirely a persons own imagination. However, it is an imagination, it has the ability to give the best results in the end, i.e. beautiful, clear and simple. Additionally, he says that good art come from an individuals heart, which means that it mostly represents a persons deeper though and imaginations like emotions. Therefore, it becomes really necessary for the person to express these things in terms of art or designs. Some of the changes that Paul came up with in the course of his practice included the fact that: he insisted on becoming more modernized even when other artist assumed the act, made sure that previous artists or designers he knew gave him positive influences only, his art and design work was supposed to have a viable and relevant origin to name a few things. Furthermore, Paul insisted on the fact that he should always be guided by principles which helped him come up with a good design and art work at the end of it all. All of the above aspects and changes were able to help an artists or designer to be one of the best, effective and efficient of his time (Norouzi et al, 2015). He was able to express his thoughts and ideas in terms of art which he basically thought was the best way to display an idea. The thing that made Pauls practice significant is the fact that at that time, many people did not really know what art or design work was. Also, they were both not being taken as meaningful jobs and therefore were thought of as just side jobs. Additionally, not so many artists and designers that existed in those years and therefore, was probably considered as the job of idlers. However, by trying to express his ideas and thoughts, Paul was able to distribute knowledge to many other people who certainly later became interested in art and design work. To add to that, Pauls practice became relevant during those years because of his popularity from different other practices which were also related to art and design work. The practice became useful to most people because at that time, a large number wanted to increase their knowledge, earn income as well as improve their living standards. Section Three Pauls book and practice are entirely and deeply related to the manifesto which is good design good will not only because he is the author and writer of the book but he was also living the manifesto. This means that in his art and design practices, Paul implemented the ideals and principles of good design good will manifesto. Therefore, in that case, the following are some of the ways in which Paul demonstrated the manifestos ideas: His first and foremost priorities are the fact that art and design works ideals, beauty and utility are mutually generative. With this in mind, he made sure that his art and design work represented all the three aspects. This was the same idea brought out by the manifesto which gives both similar ideas. Also, all his art work originated from his own ideas and thoughts. After a lot of practice and experience in the field, Pauls creativity increased and improved every single time because of the exposure he got in the field. However, later he came to realize that art should not only be original, but an artist can alo imitate a fellow artist and come up with something similar but completely different. This is completely different from what was brought out in the manifesto. Paul came up with very unique, simple and beautiful art and design work in the course of his practice which were a clear evidence of his wisdom and integrity. His art work shows that it is entirely a personal thought, creative and own view. They also indicated the originality of his work from the structure in which they presented in. Paul Rand changes a little during his art and design work practice. Just like I mentioned earlier, he tried his best to improve his work for the better and therefore had to go beyond the manifestos ideas. This means that he was able to break up from the principles and other things that were related to the manifesto and find his own way to improve his practice. Therefore, an artist would come up with ways like (Burgers, 2016): ensuring better art designs, modernize his art and design features and appearances, he tried his best to come up with his original art and design work or rather conduct effective imitation from other artists works to name a few things, made sure that his work was educational and not just commercial among other things and this is exactly what Paul did. The manifesto is somehow vague on how the art and design work should really appear but at the same time it is very influential and educative. For instance, it indicates how the works beauty, utility and ideality are all mutually generative. This means that beauty itself cannot be achieved without achieving the other two aspects. This is one factor that helped Paul in his art work (Melles et al, 2013). He was able to work towards that fact which later made him effective and most importantly one of the best in the field. Additionally, the manifesto says that art work should be a persons own creativity and idea. However, Paul argues that besides that kind of originality, one can also imitate the works of fellow artists work but not copy it directly. They should regenerate it and make it their own personal idea in their ow way which is the idea that he himself followed in most cases. Conclusion From the essay, it Is clear that art and design seem to be two different things but really are same. Art and design work is basically a persons own creativity that they should protect and guard strictly. However, different artists have different ways of practicing their art and design works which is pretty good. From the manifesto, art and design work are generally guided by certain principles that help them be attractive, beautiful, ideal and have utility. Additionally, art is not only an expression of though and opinions, but is also for education and commercial purposes for various artists and designers. For instance, as for the case of Paul Rand, a very famous and popular art and design legend, art work is basically different things for different people. However, the things that are common in all of art work is the fact that it is a persons own idea, creativity and opinion expression. Nevertheless, as for Paul art is a form of visual communication and commercial aspects. He argue s that art and design are a personal expression of a persons will from the heart; basically, good will. However, for him it is also an education instruments. Even with such arguments, Paul Rand believes that art and design work are both mainly for commercial purposes and therefore are meant to improve a persons living standards in different ways. However, generally, different things can be used for different reasons. Therefore, also when it comes to art and design, different artists and designers are simply guided by their own objectives whenever they do art or design work. References Cameron, A. 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