Language Development and Socioeconomic Status Essay Example

Language Development and Socioeconomic Status Essay Abstract: Parent’s education level which is a reasonable measure of their SES is found to influence language proficiency of their children. Substance abusing parents from low SES tend to be negligent of their children, which affects their language development. Ethnic and racial minorities, especially whose first language is different from the dominant language of the region, have historically found social mobility difficult. Parents under mental stress tend to be poor caregivers and this affects the language acquisition of their children – most such adults are from lower SES. Introduction: Research indicates that of all the parent-child activities, reading to children has a major influence on the subsequent language development of the child. This is so, because the other verbal interactions between parents and children that occur during meals, playtime, dressing up, etc, are nowhere as verbally rich as reading is. It is also a well-established fact that parents from middle-class and higher socioeconomic backgrounds spend more time reading to their children than their poorer counterparts. This implies that children from the lower strata of society are at an increased risk of language delay. They are also generally found to possess poorer reading skills and below average academic performance (Mendelsohn, Leora, et.al. 2001, p.130). We will write a custom essay sample on Language Development and Socioeconomic Status specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Language Development and Socioeconomic Status specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Language Development and Socioeconomic Status specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Language Acquisition in African American Children: Another strong influence on the language acquisition of children is the quality of care that they receive. And the quality of child-care is determined by the SES of the respective families. In one study performed on African American children aged between 6 and 12 months, nearly two thirds of them had otitis media with effusion and 2 out of 5 subjects also suffered partial hearing difficulties. The affected child suffers a partial hearing loss and hence the reception of auditory signals is poor and irregular. The ability of the child to discriminate and process speech and to store up that information in its developing repository of language is made difficult. The overall effect of all of this is a sluggish development of language skills (Roberts, Burchinal, et.al, 1998, p.353). Some of these children also suffered frequent ear infections and performed below par in language tests. The African American community generally fits in the lower-middle class or lesser bracket, which goes to show the relation between the SES and language development in children. The consistent under-achievement of African American students academically, including language skills is a widely recognized fact. Research conducted on the African American community over the last few decades suggests that the socio-economic backwardness of the community at large has a major role to play in this outcome. Traditional inequalities, cultural oppression, shanty-town housing environments and gangster rap attitude among the students have all contributed to this historical anomaly. It is also noted that African American students usually attend schools that are ineffective in imparting essential language skills. If socio-economic factors such as poverty and dysfunctional family systems may be the primary reason, but biases in standardized tests and prejudiced teachers are also significant factors. (Singer, Arendt, et.al. 2001, p.1057) The most appalling aspect of this institutionalized injustice to the African American community is the failure of the education system to imp art literary and language skills to students from the community. As these skills are held to be vital to academic and professional success in contemporary America, the community is highly disadvantaged when it comes to finding jobs in trans-national corporations. Current literacy and language trends reveal that history continues to repeat itself. For example, in Los Angeles for the first time African American students scored lower than the bilingual population in reading, language, and writing on the CTBS-U (eighth-grade) in 1997-1998. More recently, as reported by the Nation’s Report Card on Reading (2000), African American students had the lowest percentage of students, 12%, at or above proficiency compared to 32% for the nation. Something is not working. (Singer, Arendt, et.al. 2001, p.1058) The influence of Care-giving Environment: The responsiveness of home and care-giving environments (both at home and child care providers) also determines the levels of hearing difficulties in children. The first two years of care-giving is said to influence children’s linguistic and cognitive development later. The verbal and emotional responsiveness of the parent, availability of toys for play, the neatness and organization of the surroundings are all contributing factors to the child’s language acquisition. Maternal involvement is another important factor. All of these, however, happen to be of a poorer quality for children from lower socio-economic backgrounds. For example, the environment offered a toddler from low SES contain cheaper furnishings and play objects. The personal care routines are also found to be substandard. The care-giver, on average, talks, listens and interacts less with the child. Language Development and Substance Abuse: Infants exposed prenatal to cocaine have been found to have adverse neuronal development and uterine vascular flow. This is bound to have an effect on later language learning abilities. Needless to say, most cocaine addicted gestating mothers also belong to urban areas and are generally poor. Studies have found that infants more exposed to narcotic drugs â€Å"had lower auditory comprehension scores than non-exposed infants and lower total language scores than lighter and non-exposed infants †¦ heavily exposed infants were also more likely to be classified as mildly delayed by total language score than non-exposed infants.† (Roberts, Burchinal, et.al., 1998, p.352). For the prenatal cocaine exposed child, definite under-functioning of neurological mechanisms such as concentration and memory are found. Motor skills and language acquisition are the other affected areas. The neurotransmitters of the fetus are slowed down, resulting in slower processing of aural information, and results in poorer language acquisition. The effects on the neurological system in turn affect the arousal system. The overall cognitive development of the baby is also noted to be sluggish. Some studies have even associated cocaine exposure with visual disorders. Hearing Loss and Language Learning: Hearing loss of varying degrees can determine how well a child learns a language and cognitive development. In a study conducted on 100 partial to completely deaf children, a large percentage of them lagged behind in age-specific language skills. A correlation between the SES of the study group and their hearing impairment was also found. Taking the level of education of the primary care-taker of the child, the SES is determined. And the studies indicate that the lower the SES the more severe the impairment. Also, most of these children performed poorly in verbal and mathematical intelligence tests. Even the academically better children from the group score lesser than their non-impaired counterparts (Yoshinaga-Itano, Sedey, et al 1998, p.1167). Language Development in Poor Ethnic Minorities: Various researches on immigrant’s acquisition of their new regional language show some interesting results. A comparative study across continents reveals that the rate of return to language capital is higher (17%) for immigrant men in the United States than for those in Australia (5-8%), Canada (12%) and Israel (11%), A report issued by the German Socio-Economic Panel (GSOEP), shows that male and female immigrants with above average speaking fluency earn 6.9% and 7.1% more than those with deficiency in the German language. Similarly, male and female immigrants with above average writing fluency in the German language earn 7.3% and 15.3% more than those with deficiency in the German language† (Dehaene-Lambertz Hertz-Pannier 2006, p.370) An individual’s ethnicity is a factor in their language acquisition. Let us take the case of Russian immigrants in Israel post the break-up of the Soviet Union. A survey conducted on about eight hundred immigrants shows the strong link between host language acquisition and socio-economic status. Those immigrants who learnt Hebrew quickly found good economic success and easy integration. Younger and upwardly mobile immigrants showed a tendency towards additive bilingualism, incorporating the elements of Hebrew into their everyday communications and cultural/media consumption. Mastering and using Hebrew serves as a trigger for reshaping immigrants’ identity, resulting in the gradual formation of a new ethnic entity–Russian Israeli. (Remennick 2004, p.439)

No Turning Back Essays

No Turning Back Essays No Turning Back Essay No Turning Back Essay Amna Chowdhrey Ms. Thoromon English/4 27 September 2012 Chapter 4-6 Quotes| Analysis| P:66-67 â€Å"There is a sympathy that will make me conscious of him. I shall see him tremble. I shall feel myself shudder, suddenly and unawares. Sooner or later, he must needs be mine:| Hester’s husband wants to know who the man is and he wanted revenge on him. This shows how much he still cares about Hester. Even though he did leave her for 2 years because he got captured by the Native Americans, he still loves her and cares for her even after what she has done| P: 75 â€Å"She grew to have a dread of children; for something horrible in this dreary woman, gliding silently through the town, with never any companion but one only child. †| Hester is clearly an outcast. And she feels like one too. She is the example that parents use to tell their children what not to do and to show them the consequences of it. This made her feel as if she was the only one who ever committed a sin. This awful agony inside her made her feel worse; on top of that it made her feel lonesome and guilty. | P:86 â€Å"In the afternoon of a certain summer’s day, after Pearl grew big enough to run about, she amused herself with gathering handfuls of wild-flowers and flinging them, one by one, at her mother’s bosom, dancing up and down like a little elf whenever she hit the scarlet letter. †| Her daughter, Pearl, is brought by great content by such an awful thing. This shows how young and innocent she is. Even though she doesn’t have any friends because all the children in society outcast her and she doesn’t even question it. She is naive as to why they are marginalizing her. | P:79 â€Å"She knew that her deed had been evil; she could have no faith, therefore, that its result would be for good. Day after day, she looked fearfully into the child’s expanding nature; ever dreading to detect some dark and wild peculiarity, that should correspond with the guiltiness to which she owed her being. | This just comes to show how much the society has changed Hester. At first, she didn’t care what people where to whispering about her and her child when she first walked up towards the stage. But there is thought in her mind that her own child could be filled with darkness. | P: 86 â€Å"Once this freakish, elvish cast came into the child’s eyes while Hester was looking at her own image in them, as mothers are found of doing†¦Ã¢â‚¬ | Hester sees herself in her child’s eyes. She sees that her child will grow up separated from everyone else in the town, and that she will always be detached from others because she was the product of her mother’s sin which automatically means she is a sin. | Vocabulary: Alchemy- the medieval forerunner of chemistry, based on the supposed transformation of matter. Infamy- well known for some bad quality or deed Expostulation- express strong disapproval or disagreement Vengeance- punishment inflicted or retribution exacted for an injury or wrong. Constrained- severely restrict the scope, extent, or activity of :

Transitions words and phrases for essays †Pro-Academic-Writers.com

Transitions words and phrases for essays Academic and professional writing is immensely important component of college curriculum. Students are assigned to write extraordinary essays, good papers, conduct researches, analysis. Results should be presented in clear academic language. To convey ideas and points clearly, the experienced writer applies transition words and phrases. Transition words and phrases are important elements. They display relationships between different parts of one sentence or abstracts within one text. They help introduce idea, result, contrast, creating coherent text. Most students know that transition words and phrases are like bridges between long sentences. Numerous articles have been dedicated to this topic on trustworthy resources. It is the fact - not every student understands the difference. They tend to misuse words used to express different purposes or make connections between sentences. Following article will give you a better understanding of classification and usage of linking words. You will find how to write texts that are easy to read. HELP WITH MY PAPER Transition Words and Phrases Classification Correct usage of linking phrases depends on how well you understand their meaning. The better you know how to write paragraphs using them, the more effective it is. Each transition phrase has its purpose, idea and influence upon the reader; words can be split into four main categories with subcategories. In each category, the words are classified depending on what you (writer) want to show. Additive Transitions At large, category includes words and phrases that add idea, introduce or show similarity with something that has been mentioned in abstract or sentence before. The category is divided into six subcategories with various purpose and reason: addition introduction reference similarity identification clarification Sometimes students experience difficulties with words giving reference – speaking about (this), considering (this), with regards to (this), etc., which is basically the tool to return back to a specific idea, go forward, or emphasize the connection. Examples: Speaking about wedding, I loved the dress of the bride! John has never been to England before. Let alone, London. Doctor James spent three years working on his report; moreover, he did not ask anyone to help him. He did everything on his own. To tell the truth, I was reluctant that I was not invited to the dinner; I did not want to see his family. Merry was not a movie lover; for instance, last time we went to see a movie, she was complaining about neighbours eating popcorn. The contract covers force majeure cases, including fire, storm, heavy rains, and earthquakes. Adversative Transitions Adversative transitional words are used waiting for-and-against essays. To make the text coherent presenting contradictory points or facts, the writer uses adversative transitions. He/she introduces traditional view. He/she gives the reader a reasonable argument supporting another idea. Reading text, you can feel smooth transition from one sentence to another. This category lists words and phrases to make emphasis, present contrary arguments, make concession, dismissal, and, finally, replacement. Examples: Products grown without any biochemical are healthier. Yet, it is difficult to protect them from insects. It is difficult to find a good lawyer these days, but, once, you have found one, you will get a decent legal support regarding any matter. We have not received response form the commission yet. In any case, we will continue working on this project. The candidate must have a good command of Italian, or at least, upper-intermediate level to prepare and submit reports. GET YOUR A-GRADE Causal Transitions This category is subdivided into different subcategories to put emphasize and show cause, reason, effect, result, and purpose. These linking words present consequence and condition and create coherent relationships. Causal transitional phrases create smooth transition from one sentence to another; they make it understandable and logical to read. Examples: As a result of bad weather, numerous flights have been delayed. For the purpose of gathering technical staff members of the board, human resources department is obliged to reschedule our meeting. On condition that the results are positive, we will have a small party to celebrate. In order to get the parcel by the deadline, I called the agency twice but nobody answered. Sequential transitions The last important category left is sequential transitional words. The category includes subcategories, mainly, numerical, continuation, conclusion, digression, resumption, and summation categories. This group shows chronological sequence, summarizes what has been stated before, or help add logical sequence. Examples: First of all, I would like to express gratitude to everyone, who participated in this exhibition. To summarize, I would like to say that finally, we have made a great discovery that will help cure this disease. To get back to the point, please look at the second slide again. If you still in doubt and do not know how to use transitional elements properly - find professional writer's help! List of transition words and phrases Usage of Transitions Effectiveness of the text depends on correct usage of transition words. To present ideas clearly, writer should feel where to use specific word that will create a link. Excessive usage of transitions makes the text â€Å"cluttered†. Before you start working on your essay or paper, consider which ideas and the order in which you want to present them. Think of links you can use to make connection between ideas. Transitional words and phrases will help you create corresponding relationships. Do not forget about logical summary; it is important to remember - the same transition should not be used many times. Use words from the same category and subcategory, if you need to make a similar link. Instead of using the word â€Å"finally† twice, you can use â€Å"in summary† or â€Å"in conclusion†. HELP ME WRITE MY ESSAY The right usage of linking phrases will improve your academic writing skills and increase scores that your papers and essays get. Write texts that are efficient, easy to read and logical.

Evaluation and analysis of mission statments Essay

Evaluation and analysis of mission statments - Essay Example The industry chosen happens to be hospitality; luxury hotels to be more specific. The three companies chosen are Burj Al Arab, Al Qasr and Shangri-La Hotel (Kotler, 2001). Mission Statement Burj Al Arab To be the most deluxe hotel in the world, with a team of dedicated to provide outstanding personalized services, surpassing expectations of the guests by providing the ultimate Arabian hospitality experience. Al Qasr Can do attitude towards all its guests Shangri-La Hotel To delight the guests every time by developing an engaging experience straight from the heart. Comparison Although there are certain differences in all the three mission statements mentioned above, there is one common factor among all of them. All the three companies have put the customers as the main focal point of the mission statement. Hence while considering the part: for whom exactly the company does it; there are lots of similarities. While considering the fact what the company does; it can be seen the mission statement of Burj Al Arab is the most clear and concise. Also while considering the fact of how a company does it; Burj Al Arab would be ahead of the other three as the hotel has mentioned about providing personalized experience through dedicated and experienced team. Evaluation and Critique The mission statements have been analyzed based on the clarity, scope and consistency. It has also been checked whether it has been able to answer all the three questions discussed before in a clear and concise fashion. The mission statement of Burj Al Arab is very much clear. It talks about the target market segment clearly, about the services to be offered and also about the way the services would be delivered to the customers. One of the most interesting things about the mission statement has been the fact that it mentions about the â€Å"Arabian Experience†; i.e. the organizations looks to introduce the guests to the native cultural heritage. The only criticism could be that the missi on statement is a bit too long. But overall, a part of the small issue regarding the length, the statement is very much clear, concise and reflects the values and objectives of the company (Czinzota, Ronkainen, Moffett, Marinova & Marinov, 2009) Although just like Burj Al Arab, Al-Qasr is also a very famous hotel; but unlike Burj Al Arab, the later does not have a clear business statement. Although the company talks about ht target market segment, but it does not talk about the way the company looks to provide the services. Hence it is to be said that there is a lot of room for improvement at least in the case of mission statement of Al-Qasr. The mission statement of Shangri-La Hotel is quite good. It is clear and concise. It has put the customers or the guests at the heart of the statement and also it talks about providing services straight from the heart; this would helps the company to develop an emotional relationship with the customers. However, it is believed that there is roo m for improvement when it comes to describing the way the services would be delivered to the customers. what a company does how does the company do it for whom exactly the company does it Burj Al Arab 5 5 5 Al Qasr 1 1 3 Shangri-La Hotel 4 4 4 Mission Statement of the proposed company The name of the company has been chosen as Arabian Nights. The reasons for such a choice is simply due to the fact that; Arabian night’

Scepticism around the two articals of Drs Woo Hwang and Shin Moon Essay

Scepticism around the two articals of Drs Woo Hwang and Shin Moon about stem cell - Essay Example This raised further problems concerning human cloning, as the embryos created would contain the same genetic material as the host, creating a clone. As the scientific and ethical debate continued, extensive research was still being made, leading to the breakthrough, and later discredited research of Woo Hwang and Shin Moon. In two papers, entitled "Evidence of a Pluripotent Human Embryonic Stem Cell Line Derived from a Cloned Blastocyst" published in the journal Science on 12 March, 2004 and "Patient-Specific Embryonic Stem Cells Derived from Human SCNT Blastocysts" published in Science on 17 June, 2005, Woo Hwang and Shin Moon as primary researchers claimed that they managed to create human embryonic stem cells from a cloned embryo. ... Theoretically, as the researchers state, the cytoplasm of the oocyte would deactivate certain genes concerned with somatic functions and would activate the embryonic genes located within the nucleus concerned with proliferation and differentiation. They continue to explain one of the basic principles in stem cell research, as the inner cell mass is removed from the blastocyst, forming a specific stem cell line, that will be used either for research to or to treat a wide spectra of diseases like type I diabetes, osteoarthritis, Parkinson's disease, burn injuries as well as a variety of cardiovascular diseases, and possibly most important of all, an effective and safe transplantation and replacement therapy, as rejection would be non-existent by the host who has the same genetic material as the imported cells (Hwang et al, 2004). Before beginning the experiments, the researchers asked and received an approval to perform the experiments by the Institutional Review Board on Human Subject s Research and Ethics Committees from Hanyang University Hospital in Seoul, South Korea. In the experiment, they used metaphase II 242 oocytes taken from consented volunteers, and after the oocyte DNA, the scientists performed a test by imaging the cells after using a fluorescent dye in order to determine that the DNA was removed from the oocytes before performing SCNT. It should also be mentioned that at the time when the experiments were performed, an effective SCNT protocol for use on human oocytes did not exist, so the researchers had to modify several step of the procedure, including reprogramming time, or the amount of time necessary for the

The History Behind Hate Crime and the Existing Legislation Essay

The History Behind Hate Crime and the Existing Legislation Many political scientists and researchers to a number of policy arenas in the United States ranging from corporal punishment to the quality of urban life have applied Daniel Elazar’s concept of political cultures. For a vast majority of these policy programs, a considerable correlation has been found to exist between the region examined and its approach to a specific policy. Elazar focused on three primary political cultures: the Moralist political culture (MPC), the Individual political culture (IPC), and the Traditional political culture (TPC). These cultures have served as a basis for explaining the difference that exist in the political, social, and personal facets of each respective region. These ideas have been consistent throughout the course of this nation’s history, existing even in present times. I have chosen to focus on a policy program that has demanded a great deal of attention in more recent times, namely in the past few years: hate crime policy. With mor e widespread media coverage, hate crimes have become more prevalent and more publicized than ever before. The Benjamin Smith shootings and the murder of Matthew Shepard are only two examples of recent crimes, which have been considered hate crimes that have promoted politicians and legislators to address this ever-growing problem and formulate a solution. This paper will attempt to define and uncover the history behind hate crime and the existing legislation. Furthermore, I will explain my own hypothesis then examine regional difference in the approaches to hate crimes and compare and contrast them to Daniel Elazar’s idea of political cultures. My own hypothesis is that moralist cultures will have been the first to initiate hate crime policy and be most likely to have such policies followed by individualist, then traditionalist political cultures. Hate Crime: Definition and History Every since the body of James Byrd was found in pieces on a road in east Texas, the authorities have been struggling to bring charges to reflect the horror of the crime. â€Å"Murder seems too pat: Mr. Byrd was chained to a truck and dragged for almost three miles†. In Texas, simple murder does not carry the death penalty. But Mr. Byrd was black, apparently murdered by racists, so there is a call for this killing to be labeled a â€Å"hate crime†, for whi... ...tiation of Hate Crime Law in the United States, 1978 to 1995: Innovation and Diffusion in the Criminalization of Bigotry.† American Sociological Review. April, 1998: 286-307. 4. Haider-Markel, Donald P. â€Å"The Politics of Social Regulatory Policy: State and Federal Hate Crime Policy and Implementation Effort.† Political Research Quarterly. March, 1998: 69-88. 5. â€Å"An Unwise Road in Texas.† The Economist. 20 June, 1998: 17. 6. â€Å"The Hate Debate.† The New Republic. 2 November, 1998: 7-8. 7. â€Å"1999 Hate Crime Laws: Anti-Defamation League.† URL: http://www.adl.org/99hatecrime/constitutionality.html 8. â€Å"The White House Conference On Hate Crimes.† URL: http://www.whitehouse.gov/Initiatives/OneAmerica/whc.html 9. Elazar article 10. U.S. Census Bureau Statistical Abstracts of the United States: 1998. â€Å"No. 344- Hate Crimes- Number of Incidents, Offenses, Victims, and Offenders by Bias Motivation: 1996.† Statistical Abstract of the United States: 1998. 21 September, 1998: 215. 11. Wirt Lecture 12. Sharkansky article. 13. â€Å"Map of State Statutes: 1999 Hate Crime Laws.† URL: http://www.adl.org/99hatecrime/provisions.html

Hp and Compaq Merger

Webster University November 6, 2011 Hewlett- Packard Company, referred to as HP, is an American multinational information technology company. Its headquarters is based in California USA. The company was founded in 1939 built in a Palo Alto garage by Bill Hewlett and David Packard and is now one of the world’s largest information technology companies operating worldwide in almost every country. It has 87,000 employees in 120 countries. HP specializes in developing, manufacturing computing, data storage, and networking hardware. In addition it designs software and delivers services. A majority of HP’s product lines include storage devices as well as computing devices, and a wide range of imaging products and last but not least, printers. Its products are widely available to households, small to medium sized businesses, as well as through online distribution, office supply retailers, and major technology vendors. It also caters to enterprises and office supply retailers. The late 90’s brought innovation but low sales growth, as HP faced troubles in keeping up with the changing market. It was at the point where Carly Fiorina was appointed as the new CEO. The focus then became on customer and internet sales. Carly revamped organizational structure. This led to a revenue growth however, share prices still declined and HP faced recession in 2001, which led to pay cuts and layoffs. Stock prices continues to soar which led to the consideration of acquisitions. HP is committed to the development of products, information, and services that are widely accessible to everyone including those with disabilities. The commitment it provides in catering to everyone supports its diversity and â€Å"Total Customer Experience† objectives ensure that its technological benefits serve all. According to Dave Packard, â€Å"it is necessary that people work together in unison toward common objectives and avoid working at cross purposes at all levels if the ultimate in efficiency and achievements is to be obtained. † HP has a vision of diversity as being a main factor that drives success as well as personal leadership from everyone within the company. Their competitive advantage allows them to learn and to adjust through the depth of their values. It is vital for HP managers to come together regularly in order to discuss and assess the â€Å"HP Way† which ensures their top priorities through lower costs, information technology system improvements, increase in business growth, an improvement in efficiency, and customer service improvements. HP is organized in the form of two groups. The first is the Business Customer Organization, and the second group is the Consumer Business Organization (Wagonfeld, Rubenstein, and Block, 2001). Both groups are supplied through the following product divisions: Computing systems, imaging and printing systems, and embedded personal systems. In addition HP services are available which works between the consumer, the product, and the groups. Major product lines include personal computer (PC), desktop and mobile personal computers, software solutions, copiers, scanners, networking solutions, and consulting services. In addition, the company’s support group offers consulting, education, and solution financing to its users. Compaq was founded in 1982 by Rod Canion, Jim Harris, and Bill Murto and its headquarters is based in Houston, Texas. The three founders invested $1,000 each in order to begin the formation of their company and began their first product, a portable personal computer to run all the software being developed at the time for the IBM PC. Four years into operation, the company was able to pave way to the Fortune 500 more rapidly than any other company in the same domain. Compaq products were developed and placed in three different groups. The first group is the Enterprise Computing Group which designs and develops servers, internet products, and networking products. The second group is the Commercial PC Group which designs and develops commercial desktops, and small and medium business solutions. The final group is the Consumer PC Group which designs and develops consumer products such as desktops, printers, and portables. Compaq markets its products mainly to consumers from the following sectors: Business, home, government and education. In 2001, Compaq and HP engaged in a merger. The new HP will become the second largest global technology provider with around $87 billion in revenue as well as many opportunities to create competitive advantages with their existing resources. It then had the ability to provide a multiple number of solutions and will be in position of competitive advantage in comparison to the leader IBM. Prior to Compaq’s merger with HP, its ticker symbol was CPQ, however after the merger its ticker symbol is now HPQ. . The management’s reasons for the merger included the following: Improved economics and innovation, complementary eadership in key markets, strengthened business provides critical mass in key growth market, and financial benefits. First of all, combining HP and Compaq would result in creating economies of scale, direct sales channel, and a more flexible distribution channel. Second of all, the merger would facilitate the industry leading product line in the entire server category, and gain a broader portfolio of pro ducts and services. Thirdly, having around 65,000 IT architects in 160 countries accelerates growth and leads to better customer loyalty. Finally, financially, it estimated $2. 5 billion in annual cost savings by mid 2004 and the merger would also allow HP to increase investment in the imaging and printing business. Reasons against the merger were the following: HP’s business portfolio would be worse due to an increased exposure in unprofitable PC business, and the PC market was expected to shrink. Second of all, the integration risk of the proposed merger is substantial as no merger involving computer companies had ever met expectations, and analysts estimated a revenue loss that could be as high as 15-17%. Third of all, it would have a negative impact on HP stockholders as a dramatic drop in stock price was announced after the proposal of the merger and Wall Street predicted low estimates for future financial performance. A fourth reason against the merger is that HP’s strategic position will not materially improve as neither company had a profitable business model nor successfully transitioned into a direct distribution model. Furthermore, a merger would not materially improve HP’s market position in high profit areas. Despite the debate for or against the merger, there was a 51. % approval margin and supporters believed it was the best option available for both firms. SWOT analysis: The strengths of the merger are Compaq-Server category and overall storage, HP high-end storage, and strong brand recognition. HP and Compaq were to save $2. 5 billion in operating costs by 2004. After their merger, there was an increase in cash flow. The weaknesses they faced are the develo pment of a direct distribution model, consulting and outsourcing (low market share), and Compaq printers (low market share). Consumers were unsure about the reliability of new products, and HP’s market share was to increase to 18. % only. The opportunities they were faced with are the improvement the merger could have of economics and innovation namely economies of scale. It also strengthened market leadership in storage, and market growth in IT services. Finally, the threats posed were the increases of pressure by Dell in the lower-end server market, and the entrants of IBM and Dell into the market that further eroded more market share. Michael E. Porter draws upon Industrial Revolution economics in order to derive the five forces that determine the competition and the overall profitability of a market. For example, an unattractive industry would be one that combines the five forces that drives down overall profitability. The first force in Porter’s model is the threat of the entry of new competitors. Profitable markets that yield high returns and will therefore attract new firms. The result of this is many new entrants which eventually decrease profitability for all firms in the industry. The merger that occurred between Compaq and HP raises a moderate level of threat for new entrants due to economies of scale that are achieved by the already existing players, and this is what results in their competitive advantage. In addition, there is need for high capital requirement for any new player that wants to enter the market. Another factor is product differentiation which results in a constant need for the improvement in technology in order to grab consumers’ attention. A third factor is moderate consumer switching costs. An example of this is the ease for customers to change their laptops due to the standardization of most computer components. In addition, the access to distribution channels makes it easy for consumers to approach the desired products, due to the availability of direct customer service and both internet and computer retailers. The second force in Porter’s model is the bargaining power of buyers. Moderate consumer switching costs makes it easier for consumers to be able to change their laptops, due to standardization of most computer components. A low number of suppliers are providing HP and Compaq products to consumers. In addition, suppliers operate with high fixed costs, which is the main reason there are a low number of suppliers. The third force in the model is the bargaining power of suppliers, which consists of a high number of customers that are fragmented and providing products to them is not an easy task, which is why suppliers bargain highly. There are however, a few large suppliers which are trustworthy, reliable, and recognized. They provide good quality raw material such as Intel and Hitachi. A fourth force in Porter’s model is the threat of substitutes. Switching costs for consumers is high because of low price HP Compaq laptops that indicate its target towards the middle class and upper middle class segment. These people find it harder to switch from one product to another which is why they are more likely to remain loyal. In addition, frequent product introductions and constant improvements in price serve as a cause for moderate threat. A final force in the model is rivalry. High fixed costs in the cost for setup of manufacturing units increases fixed cost, which makes it more difficult for the existing players to exit the market. Also, constant changes in products and price makes competition stiffer. It is important to note that the two big players that hold the top two market share spots in the computer hardware industry are IBM and Dell. IBM has strong research and development and marketing and gave rise to PC industry with Microsoft Windows OS. IBM global services also have strong customer assistance. The latter is a direct business model with low inventory costs, and Dell’s close relationships with its consumers helped build loyalty, and it ranked number one in the global PC market in 2001. In July 1999, Carly Fiorina was appointed as the CEO of HP, and the board believed she was the saviour of HP. Her goal was to reinvent the company according to the HP way. Her motto was: â€Å"Preserve the best and reinvent the rest. † At the time Carly took over, it was a collection of independent businesses, each selling a different kind of product. Her role was to execute an â€Å"e-services† strategy that would unify them into one profitable whole. After merging with Compaq, the main strategies that are focused on are the following: Sustainability where the new HP must both retain and grab additional market share, Uniqueness by being the largest IT company world-wide, value added by which the merger must demonstrate success, an increased product line through enhancement, adaptation to market forces through flexibility, and the retention of customer base through stability. Fiorina promised balanced revenue and earnings growth, targeting 12%-15% growth in 2000. The problem was that Carly Fiorina held too many offices as she was CEO, COO, and Chairman of the board. This led to an abuse of power, poor decision-making, and miscommunication. Both Compaq and HP were in an unwinnable price war with Dell. The merger of HP and Compaq clearly benefited both companies. From Porter’s five forces model of HP-Compaq, it is evident that there are moderate entry barriers, moderate threat of substitutes, high competition, moderate bargaining of power of buyers, and high bargaining power of suppliers. HP focuses on making technology more simple for its users from individual customers to large businesses. Its top priorities are to lower costs, improve its technology systems, increase business growth, and improve both efficiency and customer service. Despite the fact that both HP and Compaq were mature companies before the merger, the merger is still considered to be under restructuring, which resulted in the company losing some of its ground as a mature company. Blending the culture of both companies resulted in more innovative ideas and is now more supportive in providing more effective customer service. Through the successful merger of HP and Compaq, their costs were reduced by $3 billion annually. From the information provided above, it is important to note that the introduction of improved and more innovative products should be of focus as competition in existing players is high in order to gain market share and competitive position in the market. The company is focusing on its strategies in order to ensure achieving all business priorities by adjusting and optimizing the product line and enhancing high end services. When analyzing a merger between two companies like Compaq and HP, it is worth noting that if we were to do a segment analysis of this merger, a different conclusion would be drawn than an increase of profits in the merged firms. In a segment analysis, the combined firms would adversely lose money while trying to gain advantage over its product line in the business sector for example. A large business segment would only see a small increase in profits in this case. Depending on the elasticity in the market and the relevant position of the firms involved, the effects of a merger would vary significantly across different segments. For example, if Dell and Compaq were to have merged in 1998, it would have resulted in a negative consumer surplus. This in turn allows us to assume that the use of segment analysis can be valuable in assessing what impacts a merger could result in in various markets that have different consumer segments. The evolution of the market also plays an important factor. In the case of the HP-Compaq merger, if the same merge had occurred at a different period like 4 years earlier there would have been a smaller consumer welfare as opposed to the results yielded in its 2001 merger. Baker and Breshnan (1985) proposed a strategy of demand and supply to evaluate the effects of mergers. Products and consumers are observed by market participants according to Baker et. al, which in turn will be correlated with equilibrium prices which will lead the price coefficient to be â€Å"biased towards zero†. Furthermore, providing the consumers with a chance to not purchase any of the products available in regards to personal computers plays an important role as it allows the uniform price increase to change the quantities purchased. In addition, by using the demand parameters that are estimated, price-cost margins and marginal costs can be calculated without the use of actual cost information. According to Nevo (2000), in the HP-Compaq merger, â€Å"marginal costs and the number of products are held constant in their pre-merger level†. Furthermore, post-merger equilibrium elasticities are calculated based on the demand parameters in the pre-merger phase. From this, we can make the assumption that both consumer preferences and the value of the good did not change after the firms merged. However, one cannot ignore the fact that changes in the strategy after the merger took place accounted for price sensitivity and particularly changes outside the industry that could impact demand for the product places doubt on whether such an assumption is valid. A way one can look at the estimates of different segments is by looking at the aggregate demand elasticities over time. This is portrayed in a report by Foncel and Invaldi (2000). It is important to note that the total elasticity for the whole market is increasing over time. This is turn means that consumers are being less sensitive as the market is approaching its maturity, this would lead to the expectation that the demand for personal computers would be more elastic. Income effect plays a big role here as soaring prices means that purchasing a PC would become a smaller share of the budget over time. In addition, further developments in software widened the use of computers and have now become a necessity in our daily lives. The total elasticity of the home segment is the one that faces the largest rise. The reason for this is that this segment became less elastic over time due to two reasons. The first reason was due to high income elasticity and the second was due to higher usage of several developments in other domains such as the internet. Qualitative analysis of coordinated effects in the HP-Compaq merger is essential in understanding the formation of the merger that took place between both companies. In order to coordinate firms that are looking into merging should be able to come to an agreement which is not always easy as products in both firms are complex and differentiated. Compaq and HP should monitor one another’s behaviour closely to detect factors such as undercutting, and keeping rivals out by â€Å"collectively coordinating behaviour between them†, Stigler (1964). The distribution of brands and market shares varies both in time and across markets. Most firms are multi product firms which is why it is essential to bear in mind that there is a substantial number of products. Another important factor here is that firms may face elastic demands which arise from the consumers’ substitution of products in quality segments. In addition, market transparency ensures that all coordinating oligopolists are aware of the changes in the evolving markets. In the HP-Compaq merger, there are several market features that pave way for coordination in the server industry and others that prevent it from occurring. Also, competitors like Dell and IBM did not try to stand in the way of the merger. According to Freidman (1971), the merger between HP and Compaq affects the incentive to cooperate, yet it actively decreases the firms’ incentives to cooperate in a strategic manner. Freidman also goes on to portray that his model does not take into account either the entry or exit of a product, nor uncertainty. The reduction of costs, and enrichment of revenues, growth of the industry, and need of product diversification are several reasons why mergers and acquisitions have become proliferate over the last decade or so. When analyzing the financial results of the HP-Compaq merger, it is important to look at the profitability and efficiency ratios of the companies in the pre-merger and post-merger stages. In order to maximize profit and minimize products, HP and Compaq understand and adjust to the constantly shifting and changing markets, which technologies need acceleration, value creation for its consumers, and global development which serves as a shield against competitors like Dell and IBM. It is essential for a firm to understand its position in the industry especially in a market that is saturated with competition like the computer industry where competitors such as Dell, IBM, Toshiba, Sony, Vaio, are present. An organization must be able to identify the factors that have an effect on the firm such as its suppliers, consumers, and competitors. Those factors enable the industry to know how to maintain itself in such a marketplace in order to be in a â€Å"win-win† situation. One of the benefits that resulted from the HP-Compaq merger is the following. Both firms were in a no win situation price war with Dell. The merger resulted in Compaq and HP to stop competing with one another. In February 2001, Dell, the biggest competitor of HP-Compaq launched a campaign to become the largest competitor in the PC industry. In an attempt to grab the market share, Dell announced and intentional undercut in its prices by 10%. Although some mergers produce marginal results or lead to the sinking of companies, HP and Compaq’s merger created a new corporate culture. This helped the company focus its product development efforts. The company improved its position in a number of core markets. By completing the merger when they did, HP was able to position itself by taking the extra leap ahead of trends that were working against the two companies when they existed as independent entities. In addition, its commitment to cultural change helped the merger go through a smoother transition, although HP took certain measures like reducing its workforce size, the change of 2 CEO’s, and the reorganization of the management’s structure. â€Å"The HP-Compaq merger established what it had set out to. Its main aim was to provide the essential mass and ensure a long term-role in an industry that was undergoing a fundamental transition,† according to Jean S. Bozman, research vice president in IDC’s world-wide Server Group. Furthermore, he added that â€Å"this deal enabled the merged company to grow revenue and profits in an increasingly competitive marketplace. † References: Anon (2002): Investor relations- taking a fair share of the responsibility, Strategic Direction. Bradford: Vol. 18, Iss. 8, pgs. 13-16. Ahles, Andrea (2002): Hewlett-Packard Executives Say Its Company Is on Track to Produce Lasting Benefits, Knight Ridder Tribune Business News. Washington: Aug 28, pg. 1. 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