Leadership essence Essay Example | Topics and Well Written Essays - 3000 words

Leadership essence - Essay Example The trait theory postulates that leaders are born rather than made. It emphasizes nature over nurture. Most research on trait theory is coalesced around the qualities of distinguished leaders compared to non-leaders or followers. Trait approach focuses on the type of people that become leaders, and this process provides organizations with information on the qualities to look for when selecting leaders for different positions of leadership (Conger& Riggio, 2012, pp. 12). Style approach focuses on the behavior of leaders rather than personal traits of leaders. Style approach posits that since a leaders behavior can be changed, and; therefore, there is need to train leaders on the right leadership qualities. Stogdill et al worked on leadership style with a focus on consideration and initiating structure and define them two styles as follows: The consideration style is where leaders show concern for their subordinates so as to earn their trust and, as a result, improve response and promote camaraderie (Conger& Riggio, 2012, pp.14). Initiating structure is a style where leaders define closely and clearly their expectations of subordinates in accomplishment of designated schedules. Some researchers have suggested that a combination of both consideration and initiating structure was the best leadership style. Korman in his study observed that the two styles were plagued by inconsistent results. He suggested that the effectiveness of the two types of leadership behavior was situation wise contingent; that is, what worked well in some situations failed in others (Gill 2012, pp. 63). Proponents of the contingency approach emphasize on the situational factors when defining leadership. They tend to specify situational variables that moderate the effectiveness of different leadership approaches. The most prominent exemplar of the contingency approach is Fiedler’s

Nationalism in Africa and Asia as a Mass Movement Essay

Nationalism in Africa and Asia as a Mass Movement - Essay Example The book, After the Tamerlane: the rise and fall of global empires, 1400-200 by John Darwin, is an impressive example of the macro narrative approach to the history of the world that has been (Anderson, 2006, p170). The writer provides a well argued, nuanced yet so clear, and highly informative overview of more than half a millennium of interaction cross-continentally and exchange, which he relates to his main theme-the rise and fall of global empires. Starting with a well-produced survey of the state of various Asian empires circa 1500, the writer sets out to decentre the overwhelmingly European-focused macro-narrative that has dominated thinking and writing about the rise and fall of expansive colonizing polities for centuries (Anderson, 2006, p183). The writer is able to sustain this shift in perspective quite well through the early chapters, which converge in his discussion the factors leading to the ‘great divergence’, which has received a considerable deal of conce ntration on the fraction of the world’s historians in the recent years (Anderson, 2006, p190). ... that consists of well focused and perceptive discussions of the weaknesses and failures of European colonizing enterprises and their persisting dependence on colonized peoples for all manner of imperial endeavors, from trade and war to the governance of conquered territories. Darwin’s attention to the weakness and vulnerability of even empires on the increase or at the climax of their global power considerably enhances his superb discussions of what he uses as key factors that favor some empire-minded societies over others (Anderson, 2006, p178). In the course of the nineteenth century, especially in its latter half, the philological lexicographic revolution and the rise of intra-European nationalist movements, themselves the products, not only of capitalism, but of the elephantiasis of the reigning states, formed increasing culture, therefore, supporting and complex for many dynasts (Anderson, 2006, p180). The legitimacy of most of these dynasties had nothing to do with natio nals. Romanov ruled over the Tatars and Letts, Germans and Armenians, Russians and Finns. Habsburgs were perched high over Magyars and Croats, Slovaks and Italians, Ukrainians and Austro-Germans (Anderson, 2006, p182). Hanoverians presided over Bengalis and Quebecois, as well as Scots and Irish, English and Welsh. On the continent furthermore, members of the same dynastic families often ruled in different, sometimes rivalrous states. What nationality should be assigned to Bourbons ruling in France and Spain, Hohenzollerns in Prussia and Rumania, Wittelsbachs in Bavaria and Greece?  

Tesco Utilising the Marketing Mix Essay Example for Free

Tesco Utilising the Marketing Mix Essay Tesco is one of the world’s international retailers and is recognised as the market leader in the UK supermarket sector. Tesco state that their core purpose is ‘to create value for customers to earn their life time loyalty’ Evaluate how Tesco and other supermarkets utilise the marketing mix to compete in the market place. Tesco is the leading retailer with a market share in 2010 of 29.7% (Wright, 2012), a reason they have proven to be such a successful business is because of their well thought through slogan ‘every little helps’ which is simultaneously used to shape their core values, the slogan is now embedded throughout every aspect of the organisation. Tesco along with many other business use the marketing mix model, otherwise known as the 7 P’s to set effective business strategies in order to provide a good quality of service to their customers. To compare the broadness of the way the marketing mix works for different businesses another leading supermarket chain should be chosen. Asda in 2010 had a market share of 16.9% (Wright, 2012) also applies the marketing mix in considering any values or goals. Consequently their slogan is ‘Asda, always cutting prices’ Asda’s slogan is used similarly to Tesco’s as a means of shaping the business. This ethos is used in order to sell their brand effectively to get a higher amount of Revenue. In a highly competitive market, Tesco and Asda need to make sure the marketing mix model is considered effectively to ensure the business is strong enough to survive in the supermarket sector, meaning all core values must be relevant and work effectively for these profit orientated businesses allowing them to reinvest and develop their brands. Price is a section of the marketing mix, when considering prices if a product is priced too low or too high, it could mean a loss of sales for an organisation. Tesco attempt to meet the consumers in the middle by having lower prices that still give them a reasonable amount of profit. One of their aims is ‘continually increase value for money’ they did this by completing a basket scheme where they then implemented individual prices per product line to insure no major price difference between them and Asda  (Anonymous, 2000). However the problem Tesco are facing is that 80% of consumers fell into the squeezed middle bracket (Wood, 2011), consequently Tesco is having to cut the price of essentials and enforce a psychological pricing strategy to attract customers who are now below the middle class category to ensure they keep their revenues high. Compared to Asda’s more laid back approach where their policy is to have ‘permanently low price through a rollback scheme’ research shows that their prices are on average 5-10% cheaper than the market average (Anonymous, 2000), after looking over Asda’s pricing methods it seems the favoured pricing strategy is the Economy pricing (Anonymous, 2003) where all costs are kept low to insure cheaper products and to make sure a mass market of consumers can afford various products due to the lower prices. Product is a key part of the marketing mix, it involves the brand itself and the service a business is providing to gain a large amount of capital and attract customer loyalty. Tesco’s have expanded into many different markets with their range of products from petrol to food and clothes. It’s become clear to Tesco now that it’s value or basic range has become considerably popular and Tesco’s Value brand is now one of the biggest grocery brands in the UK, even bigger than large popular businesses such as Coca-Cola and Walkers (Anonymous, 2008). This break through has allowed Tesco to focus on other aspects of it’s product portfolio leading them to introduce over 2,000 new and improved food products after looking over customers reviews about product quality being increasingly important to them (Tesco PLC, 2011) as well as looking closer at it’s newer ventures, like Tesco bank and the Tesco’s in Korea. However, when considering all the ranges of products Asda’s would find it difficult to compete with all their products as they are mainly focused on cheaper products which shows as around half their products sales are own label products (Walmart, 2010) Asda mainly focuses on their own brand products as they are the higher sellers and so they ensure there’s a continuous flow of new product innovation so that they are ahead of the consumers needs (Walmart, 2010). Place in the marketing mix looks at where the product/service is sold whether it’s on the internet, a small corner shop or a massive shop. A new place for the supermarket sector to sell at is the internet, because more and more consumers are working longer  hours to get money it is simply much easier for them to do an online shop rather than having to go to the shop, which is shown well in Tesco’s new advert. Tesco’s have made the internet shopping experience their own as they are currently the fastest growing online retailer in volume terms in the clothing, footwear and accessories market (Tesco PLC, 2011) as well as a 15% growth in the online business (Tesco PLC, 2012) proving that when they invested in the internet shopping experience they have helped ‘to create a value for customers to earn their life time loyalty. As well as this, they understand the local market of stores where some local stores have lower prices on a limited range of goods (Anonymous, 2000) building up customer relations to create higher quality services and increase the customer loyalty. Asda has also advanced onto the online shopping hype and has found that in 2009 the home shopping growth was around 40% (Walmart, 2010) Asda understand that this is a growing trend and so have invested into developing new channels and finding innovative ways of reaching customers whether they are at home on the move o r in store (Walmart, 2010), one of the new creations for Asda is an app store which shows they are modernising with the times. Promotion is a vital way in advertising a company, product or service as a means of branding, as well as offering money off deals to make consumers feel like their saving money. A way Tesco’s has managed to keep customer loyalty as well as creating lots of promotional deals is the Tesco club card, which was launched in 1995 (Tesco PLC, 2011). The clubcard allows a customer to collect points for money vouchers which consumers can then spend in store or online. This method allows consumers to get money back from their purchases therefore convincing them to revisit the store to get a return on their spending, this helps with improved customer loyalty as well as high brand awareness. Asda take a different approach and chose not to create promotional deals, but instead highlight their cheaper products this is the Asda rollback scheme. Asda is Britain’s lowest cost to operate supermarket (Walmart, 2010) and so their promotion is the brand and the fact that Asda have a permanently low prices policy, which means consumers feel they would save more money allowing them to have more disposable income and spend more money on extravagant products in Asda if they wish. People are an essential part of the marketing mix, as it relates to the consumers, labour, suppliers, and stakeholders anyone who helps the business stay afloat. Tesco  invest in their staff skills to insure a high quality service, as well as being dedicated to providing a diverse career opportunity for all their staff worldwide (Tesco PLC, 2011), this would provide employees with greater job satisfaction and the opportunity of being promoted. As well as internal affairs, Tesco also thinks about the people externally of the business, as there is increased demand for locally produced food, therefore Tesco now supports the local economy to assist in s ustaining the community and so has increased the local buys from  £850 million in 2009 to  £1 billion in 2010 (Tesco PLC, 2012) to ensure local suppliers are support after the shake of the financial crisis. This is also better for the consumers as imports are more expensive so product costs can be cut. Asda has an ‘everyone matters’ approach demonstrating that colleagues are a vital resource, to ensure the staff are content Asda has flexible working practices and world class reward packages which since it was launched in 1999 has given out  £129 million in bonuses. Asda also likes to help the community so a lot of the suppliers are local, consequently products are cheaper and they have less environmental impact reducing their carbon footprint (Walmart, 2010). Process relates to delivery and the responses to any complaints, for example customer services. Tesco wanted to get customer feedback so introduced ‘every comment helps’ the feedback was based on customer service and product range the got over 20,000 positive responses which reflects on the business well. Tesco has since train around 80,000 staff as a means support them to give helpful advice, be friendl y and efficient. Also keeping up with technology and providing the self service system which currently accounts for around 10,000 transactions per week, this makes queue times shorter as well as being a quick and easy option to make shopping a more pleasurable experience (Tesco PLC, 2011). Asda has provided 1,100 vans, from 160 vans and one dedicated home shopping center that provides coverage for 97% of the UK, therefore a large consumer base is met with only a few people not being able to be delivered to providing a very efficient service (Walmart, 2010). Physical evidence considers the atmosphere of the business and the effect the business has on consumers whether it’s good or bad. Tesco puts staff through training to provide consumers with the best possible service, because of the high levels of engagement customers are able to enjoy the benefits of Tesco’s having confident and experienced staff on hand to help at any given  moment (Tesco PLC, 2011). This provides the Tesco shopping experience with a more relaxed experience for consumers who can be comfortable to ask employees for help. An ex-employee for Asda said how it was a ‘fun and vibrant culture to work in, and how there were regular meetings at the start of shifts to keep all staff updated. How he was lucky enough to be accepted in the stepping stone scheme which trains up employee to promote them up levels in the business,’ (Tasda123, 2007) after analysing the employee review you can really feel how positive the experience is working at Asda, and a positive employee attitude would rub off on a customer meaning they will have a good experience too. As long as the feelings of the employees of businesses are positive then the shopping experience can be enjoyable rather than a chore. After looking over two of the largest supermarket retail you can see how well thought about the individual parts of the business is, every part has been considered. It may be that for some businesses one or multiple sections of the mix has more relevance to their main aims, for example if Tesco wants ‘to create value for customers to earn their life time loyalty’ they may primarily look at promotion and process to enable the best service they could supply to their customers. The supermarket sector is competitive and so utilising the marketing mix has helped Tesco and Asda to develop their own individual take on the sector, to form their own unique business strategies from what they may have researched using primary or secondary data. Looking closer at Tesco and Asda, you can see some similarities, but in the end, they are different in order to compete to gain a higher market share and increase market share. The different parts of the mix will show the effectiveness of the business to increase capital, Tesco has a large range of products at varied prices whereas Asda has a more limited amount of products and the prices are cheaper with the idea that customers can afford to buy more of their products and spend more. After looking over how two businesses in the same sector apply the marketing mix you can observe that they compete from the start in order to gain an increased brand awareness, to do this they must look at each part of the mix to discover it’s overall ethos for which Tesco’s is ‘every little helps’ and Asda’s is ‘Asda, always cutting prices’ both are completely different to attract consumers. Currently statistics show that Tesco’s mix is more effective than Asda, this is because they have invested capital in expanding  all parts of the mix to appeal to a mass market. If used efficiently the marketing mix is useful for competing, to show a business what it’s internal and external running’s are like so that they can establish their ethos to market the business effectively to gain a larger holding in the sector it works in, therefore insuring the marketing mix is thought through properly will help in establishing a business. Bibliography * Anonymous (2000) (Journal) Company pricing policies, Competition Commission, p. 80, p87-88. * Anonymous (2003) (Website) Pricing Strategies, [Online], Available: http://marketingteacher.com/lesson-store/lesson-pricing.html [2012]. * Anonymous, T.- (2008) (Website) Things You didnt know, Tesco Report, pp. 120-121, Available: http://www.superbrands.co.il/pdf/TESCO.pdf. * Tasda123 (2007) (Website) Being an ASDA colleague, 14 February, [Online], Available: http://www.dooyoo.co.uk/employment/asda-stores/1046495/. * Tesco PLC (2011) (Report) Tesco Annual Report 2011. * Tesco PLC (2011) (Report) Annual Reports And Financial Statements 2011, p.18 p.37, p.49. * Tesco PLC (2011) (Website) Timeline, Tesco, Available: http://www.superbrands.co.il/pdf/TESCO.pdf. * Tesco PLC (2012) (Website) Growing Retail services, [Online], Available: http://ar2011.tescoplc.com/business-review/growing-retail-services.html [2012]. * Tesco PLC (2012) (Website) Local Sourcing, [Online], Available: http://www.tescoplc.com/corporate-responsibility/our-sourcing-policies/local-sourcing/. * Walmart (2010) -Asda Home Shopping, All About Asda, p. 15. (Report) -Our Digital Business, All About ASDA, p. 15. -Our Food, All About Asda, p. 10. -Our Story. and today, All About Asda, p. 3. -Our Suppliers, All About Asda, p.7. -What We Love About Asda, All About Asda, p. 6. * Wood, Z. (2011) -Tesco declares war on rivals with  £500m price cutting offensive, The Guardian, September. (Journal) * Wright, C. (2012) Tesco market share at its lowest since May 2005, The Grocer. (journal)

Ted Talk Script Technology Repercussions in Youth

Ted Talk Script Technology Repercussions in Youth Is this ipad a piece of technology or this scissor? Now probably you are thinking for sure the ipad is no doubt and scissors are just a tool. But let me tell you, you are actually wrong; both of these materials are categorized as technology. Now let me introduce you to what technology really is, by telling you a brief meaning so, what is Technology? Technology is a material that has various forms which helps a person performs a task on a daily basis. In todays world Technology is necessary in every aspect of live as it has changed and evolved the very world we live in. Technology has impacted youth of the 21st century as well as the adults, who are going through the era of simplicity into robotic evolution. But todays Ted Talk will mainly focus on the effects of technology on mainly youth. But many benefits of technology have been seen as years have passed, for example discoveries in all mechanical industries, efficiency of business work, advancements in medical care and many more. Side effects that is evident when you here technology,ÂÂ   deficiency in child thinking and social skills , privacy is at risk , climate change and the most worrying is the laziness in humans. Technology has never been so improved and developed in the history of humanity since the invention of the first wheel to now the era of virtual reality. I personally believe that technology, being used by anyone is not harmful at all but it does not affect a person until someone misuses it for their own sake or benefit. In todays world the youth run the technology and technology is its main target, the relationship between them is vice versa and none of them can stay without each other, note that I am not talking about a person but rather about a no living thing but now in this era these technological things are given more importance than actual living human beings. This technology indeed causes youth of today to like tech in the form of phones but also it causes harmful effects that stay with the youth throughout their lives. For example, depression and extreme isolation is evident in most of todays youth, this happens due to the lack of contact with people in their real lives other than virtual friends on Facebook. This happens often in institutions like social gatherings and when there is a pause or silence or you might feel awkward , in order to cope with it taking out your phone and using it without a purpose make us youth feel better than talking to a person right in front. Isolation then leads to Depression which then shows us that we lack human contact which includes physical exercise. Not exercising and staying home all day also adds obesity within you. This moreover relates to the reason why this happens and so its because youth utilizing their time in video games, taking to friends online and mostly watching YouTube videos most of the ir day rather than studying or using their time effectively in other things which I think is known as studying. Face to face interaction between people has been reduced, resulting absence of social skills, which are needed in our daily lives. Through the media, for likely Hollywood movies we have seen how children get bullied in school by kids are more tougher than them but this still exists but bullying has taken another form in todays time , instead kids get bullied more likely through social media now. This is just simple as a kid posting a picture on instagram and then waiting for instant likes but less that he know instead of likes he gets bombarded my comments my his friends that how ugly he or she looks. This internal depression and pain within a kids mind affects them mentally which remains with them during their life span, just like a pavement, a part of like taking away apart life. Kids who get involved in the act of bullying other kids , this happens since these bullies are more like to say things online on Facebook or twitter or other social media applications rather in person , face to face but they do not have guts bully in real life. Eventually, increase in cyber-bullying leads to teen suicides and parents get hurt and eventually wanting to know the reason why this happened. But now we all know reasons behind this? Dont we? I can just not stop talking about the negative effects of technology as they are reoccurring in my mind while I am trying to pursue you to lessen down the amount of time you send on technology. Now I am going to tell you some information that you might not really pay attention while your parents are telling you! I will take my parents as an example and display it to you guys and assume that all parents tell this to their kids. So what Parents say is basically, dont use headphones while sleeping or overusing and listening to music a lot during the day at constant pace but guess what? It causes loss of hearing over time. Just like the previous outcome looking at a phone or any display can affect people and mostly likely children to have vision loss resulting optical glasses much earlier in life. For example, I am assuming you have a younger sibling who wears glasses and he plays games on the ipad right in front of his eyes as close as he could be to the screen. But your parents are shouting at him, telling him stop playing it to close to your eyes, as your sibling is ruining his precious eyes or this might be you too. While you would like to have much longer conversations with Siri then real friends and people, it shows how much you love your phone and you have created this person in your life that displays family to you. Force yourself to have a relaxing electronic free day where you appreciate the surroundings near your which will help calm all your stress down from these worldly things. The article in Psychology Today says that, the use of technology can alter the actual wiring of the brain. More than a third of children under the age of two use mobile media. That number only increases as children age, with 95% of teens 12-17 spending time online. The article, explains this as video games form the brain in a way that leads to a diminishing memory and distraction. Children who use search engine to find information might be good at finding it but not at remembering. Also children who use too much of technology may not use their imagination to deeply analyze the information or material. Another study on two groups of sixth graders found that kids who had no access to electronic devices for five days were better at picking up on emotions and nonverbal cues of photos of faces than the group that used their devices during that time. Also this relates to how, Pediatricians say that severe obesity is increasing among young people which clearly reflects the type of foods kids eat also as we use more technology, we exercise little. Now, let me give you an advice, go for a vacation, do not take your phone despite all those important pictures you have to upload then actually enjoying the real sensation of the actual place. Creating an absolute balance in your life will help you appreciate the people around you as well as the technology you use but rather becoming a senseless zombie that you often kill in the games. Lastly, I am not saying that you by using technology are a bad person, but what I am trying to convey is that technology is now getting advance day by day, you being dependent on it could ruin your live in a way that you would not even imagine. By advance technology I mean, how you see in movies that the artificial intelligent robots designed by humans, attack humans and then take over the world by causing a terrifying robotic apocalypse. So consider this question, What if you were the one who invented this weapon of mass destruction and caused us, humans to extinct? Works Cited Walsh, Kelly. Awesome Free Ed Tech Resources EBook! Emerging Education Technologies RSS. 20 June 2012. Web. 15 January. 2017. The Four Negative Sides of Technology. The Four Negative Sides of Technology | Edudemic. N.p., n.d. Web. 15 Jan. 2017.

Validation of Post Traumatic Stress Disorder :: Post-traumatic stress disorder, PTSD

The intention of this study is to validate the issue of PTSD which some have attempted to discredit as a medical condition. To achieve this, the magnitude and incidence rate of the condition requires robust evidence. This study is taking secondary data from the Vietnam Veterans National Readjustment Survey (NVVRS) and developing the analysis further. The technique employed here is Meta analysis which is more typically used for quantitative literature applications. In any analysis of secondary data it is crucial to consider the incidence rates of mental health issues among those who fought in Vietnam. It is also important to differentiate factors between the time periods of their lives before they joined the military, while they served in the military and their lives after they left the forces. It is central to what we are trying to achieve to identify those who might be at high risk of developing PTSD, as people will react in differing ways to different stimuli such as distr essing events or stressful circumstances. Population and Sample The data sample used for this study will be substantial due to the amount of information collected on post traumatic stress disorder. Samples were drawn from the nationwide probability sample of the NVVRS study. The first sample included 479,000 males Vietnam veterans (15.2 % of the total) who met the criteria for current post traumatic stress disorder. The second sample included 7,200 female Vietnam veterans with a current prevalence rate of 8.5%. The third set of samples included 350,000 Vietnam veterans of both genders, with 11.1% male and 7.8% female partial PTSD incidence rates. The last set of samples showed 30.6% of male Vietnam veteran and 26.9% of female veterans who met the criteria for developing PTSD (Kulka et al. 1990). Due to significant time constraints and limited access to information, a decision was made to use a Meta-Analysis. The Meta-Analysis provides a systematic evaluation of the quantitative analysis, which combines and summarizes several different studies. This method offers control over the data analysis, and by using statistical software, it addresses related hypotheses for delivery of precision in the use of codes. The main aim and focus of the Meta-Analysis in this research involves clearly identifying the problem and researching the literature for primary or representative studies. This approach allows for the creation of an appropriate data set for the evaluation, coding and analysis of the data in order to produce a valid analysis of the results.

Emotional Triggers :: essays research papers

When director of photography Conrad Hall, ASC and director Sam Mendes teamed to make American Beauty, few could have predicted that their dark vision of suburban malaise would be such a smash success. The film won five Academy Awards, including those for Best Picture, Best Director and Best Cinematography (Hall’s second Oscar, following his triumph for the 1969 Western classic Butch Cassidy and the Sundance Kid). Hall’s work also earned him his third ASC Award for Outstanding Achievement in Cinematography (see AC June ‘00). Road to Perdition, Hall and Mendes’ second collaboration, took the duo into decidedly different territory. Based on a graphic novel authored by Max Allan Collins, the film is a tale about the Irish Mafia set in 1930s Chicago. At its heart is the relationship between fathers and sons; after his professional life tragically impacts his domestic life, hit man Michael Sullivan (Tom Hanks) sets out on a wintry journey of self-discovery with his son, Michael Jr. (Tyler Hoechlin). Along the way, Sullivan must come to terms with his adoptive father, Irish crime lord John Rooney (Paul Newman). â€Å"Road to Perdition is a period movie in which there are no double-breasted, pin-striped suits and no spats,† Mendes says. â€Å"I was trying to get away from all the clichà ©s of the gangster genre.† Hall’s overarching strategy for the film dovetailed with the director’s goal by favoring naturalistic realism over a more stylized approach to the material. â€Å"The thing that makes this picture work so well is a kind of honesty,† Hall says. â€Å"It’s a sort of honest reality that doesn’t try to be theatrical in any way. There is no blue moonlight, no green vistas, none of that kind of stuff. The film has very carefully crafted compositions, it’s meticulously cut, and it’s paced very gently and slowly — all of which is good for the story.† Of his photography, Hall notes that â€Å"I’m not trying to characterize the people in the film; the actors do that. I’m trying to frame them in an appropriate emotional context for the scenes. How are their characters behaving in those scenes? Are they behaving like human beings? My goal is to make a given scene emotionally accessible for the audience. I just try to make it real. Whatever the story is trying to say to the audience dictates to me the mood I should use to reach that audience. In this case, the film is about a father who’s trying to raise his son so that the boy won’t grow up to be like him.

Dividend Growth Model Essay

1. Dividend Growth ModelThe basic assumption in the Dividend Growth Model is that the dividend is expected to grow at a constant rate. That this growth rate will not change for the duration of the evaluated period. As a result, this may skew the resultant for companies that are experiencing rapid growth. The Dividend Growth Model is better suited for those stable companies that fit the model. Those that are growing quickly or that don’t pay dividends do not fit the assumption parameters, and thus this model cannot be used. In this model, a company may not exceed the market growth rate. In addition, since the dividend growth rate is expected to remain constant indefinitely, the other measures of performance within the company are also expected to maintain the same growth rate. If in the current state, the dividend rate is greater that earnings, in time this model will show a dividend payout greater than the earnings of the company. Conversely, if earnings are growing faster than dividends, the payout rate will converge towards zero. In summary, the Dividend Growth Model works well for those companies growing at a rate equal to or lower than that of the economy and have an established and stable dividend payout. In order to estimate the cost of equity using the Dividend Growth Model, we simply adjust the model’s equation for estimating the price of a stock, given as such:P = D1 / (r – g)Where P = the price of the stockD1 = the expected Dividend in one yearr = the required rate of returng = the expected Growth ConstantBy solving the equation for k we get the following:P(r – g) = D1r – g = D1 / Pr = (D1 / P) + gTherefore in order to estimate the cost of equity through the Dividend Growth Model, we simply add the constant growth rate and the projected dividend yield in one year. 2. Capital Asset Pricing ModelThe assumptions used in the Capital Asset Pricing Model (CAPM) are similar in that they assume an almost â€Å"perfect world† scenario. Initially, CAPM assumes that all investors have the same rational expectations of returns, and that these returns are in line with the best prediction for future returns as based on the available information. It also makes the assumption that the dividends are paid normally, that assets are fixed, and that the market is efficient and in equilibrium with no inflation or change in the interest rate. CAPM additionally makes the important assumption that the evaluated stock is properly priced and that the risk level has been properly assessed. Another major assumption is that there are no taxes, transaction fees, or arbitrage opportunities during the evaluation period. This is a huge assumption which is generally incorrect. Almost all transactions within the market have some sort of tax or fee associated with it. Within CAPM, the required rate of return is found in the following equation:r = rf + B (rm – rf)Where r = the required rate of returnrf = the risk free rateB = the stock’s Beta valuerm = The Market returnIn essence CAPM evaluates a stock based on its risk and potential return compared to a risk-free market portfolio. 3. CAPM and the Modern Portfolio TheoryModern Portfolio Theory is an attempt to balance the risks and rewards of investment portfolios through the use of diversification to lower the risk of the entire portfolio while maintaining high returns. The use of Beta is a key concept in Modern Portfolio Theory. It uses CAPM as its basis to select investments within a portfolio; seeking to mix stocks with both positive and negative Betas to construct a portfolio with a minimal Beta for the group of stocks as a whole. Theoretically, the returns from stocks with both positive and negative betas do not cancel each other out, but rather the portfolio is constructed that the returns are independent of the other stocks held, yet complimentary in accumulation of returns. 4. Estimation of Untraded Stocks. The general standard for estimating the cost of equity of a non-traded  company is through the Market Approach. The basis of this approach is that the stocks of publicly traded companies, engaged in the same of comparable business, are a valid indicator of performance for a non-traded company. Under the Market Approach, there are two commonly used valuation methods; the Guideline Public Company method, and the Merger and Acquisition Method. The Guideline Public Company method consists of finding a comparable company and applying that companies financial data to the non-traded company. A company chosen to provide a reasonable basis for comparison should ideally be in the same industry as the non-traded company. However, if there are no companies with sufficient data available, as company in a similar industry may be selected. A similar industry should be one that had identical investment characteristics such as markets, growth, and product lines. The difficulty in using this method lies in identifying a public company that is sufficiently comparable. According to the American Institute of Certified Public Accountants Statement onStandards for Valuation Services, the following should be considered when using guideline companies:†A. Price information of the guideline company must be related to the appropriate underlying financial data of the company evaluatedB. The valuation ratios for the guideline company and the comparative analysis of qualitative and quantitative factors should be used together to determine appropriate valuation ratios to be applied to the subject company. C. Several valuation ratios may be selected for application to the subject company, and several value indications may be obtained. The appraiser should consider the relative importance accorded to each of the value indications used in arriving at the opinion or conclusion of value. D. To the extent that adjustments for dissimilarities with respect to minority and control, or marketability, have not been made earlier, appropriate adjustments for these factors must be made, if applicable.†The key to obtaining the most accurate results when using the Guideline Company  Method is to use the most comparable company as the guideline company. The closer to the evaluated company in all areas, the more accurate the result. The merger and acquisition method evaluates a company based on actual merger and acquisition transactions that involve entire companies or controlling interests in companies. This method may include companies that were either public or private prior to the control transaction. When using this method, all of the underlying information relating to a particular merger or acquisition may not be known. The motives of the buyer or seller may cause the transaction amounts to be skewed; this will be transparent to the evaluator and can cause an inaccurate evaluation. By using either of the Market Approach methods, it is still a â€Å"best guess† based on the best available information. The more accurate and comparable the comparison study is, the better the resulting evaluation. REFERENCES 1. Booth, Laurence. Time to Pass the Old Maid? http://www.investmentreview.com/archives/1999/spring/oldmaid.html2. Damodaran, Aswath. Dividend Discount Models. New York University, Leonard N. Stern School of Businesshttp://pages.stern.nyu.edu/~adamodar/pdfiles/valn2ed/ch13.pdf3. Citizendium.org. Cost of equity. http://en.citizendium.org/wiki/Cost_of_equity4. Ivkovic, Inya. CAPM – Where Market Theories Converge and Clash. suite101.com. Sep 29, 2007http://investment.suite101.com/article.cfm/capm_assumptions_and_limitations5. Investopedia.com. Financial Concepts: Capital Asset Pricing Model. August 2007http://www.investopedia.com/university/concepts/concepts8.asp6. Wallener, Damir. What is Modern Portfolio Theory?http://www.investopedia.com/university/concepts/concepts8.asp7. The American Institute of Certified Public Accountants (AICPA). Statement on Standards for Valuation Services. http://bvfls.aicpa.org/NR/rdonlyres/672E1DD4-2304-47CA-8F34-8C5AA64CB008/0/SSVS_Full_Version.pdf8. Wise, Richard M. Caveats in Using Guideline Company Transactional Data in Valuing a Business. Quarterly Journal of the Business Valuation Committee of the American Society of Appraisers. Vol. 22, No. 1, March 2003http://www.wbbusval.com/english/pdf/BVR4-Caveats-Guideline-Cos-March03.pdf9. Pratt, Shannon P. Business Valuation Body of Knowledge Workbook, 2nd Edition. ISBN: 978-0-471-27066-9. Paperback. 192 pages. January 2003