Philosophical Theories Essay

It can be thought that the very foundation of philosophy lies mainly on the person’s way of thinking influenced by the critical observation of his surroundings and how he stands as an existing entity (Thomas, 1990). In the education sector, the philosophies and theories in learning influence the overall teaching scope from the instructors to the students.   Ã‚  Ã‚  Ã‚   Primarily, the teachers are the main initiators of interaction within the class. He designates the relative importance of education philosophies without even having to emphasize that he is going to use it. Sometimes, even the teacher himself is not really aware that interaction processes with the class already signify philosophical approaches.   Ã‚  Ã‚  Ã‚   One example is Idealism. In this aspect, the teacher becomes the role model for the students who will project a character of having ethical and moral values as accorded by the society (Slater). The class then will have an advantage knowing that they could depend on a specific attribute to apply something â€Å"good† to their lives.   Ã‚  Ã‚  Ã‚   Another philosophy is Realism. In this facet, the teacher is able to signify what is to be found in nature by understanding the very essence of reality (Slater). This teaching scope will let the students become more aware of the natural world without the harm of having biased thoughts according to the teacher’s perception.   Ã‚  Ã‚  Ã‚   One more example of an education philosophy is pragmatism. This aspect also lets the teacher to learn together with the students (Slater). This will bring beneficial interaction by opening a larger avenue for two way communication which will help address the individual learning needs of each student. References Slater, T. N.D. Critique of Various Philosophies and Theories of Education. IJOT-Educational Philosophies http://www.ijot.com/papers/slater_educational_philosophies.pdf Thomas, W. 1990. What is Philosophy? The Atlas Society. Retrieved January 31, 2008 from http://www.objectivistcenter.org/cth–409-FAQ_Philosophy.aspx.

Kennedy vs. Nixon Essay

â€Å"Peace,† the overall message is about experience and knowing what to do during though times. Nixon’s campaign tried to convey this seriousness by shooting its commercials of Nixon perched on a desk and speaking directly to the camera. In JFK’s 1960 â€Å"Debate,† political ad, he addresses the people in a snappier way, and by â€Å"facing the issues squarely. † However, neither of the candidates’ ads was about issues; rather, they were more contrast in styles. The messages focused on the era as a dangerous time; it was really an election about change versus experience. In Kennedy’s ad, he expresses his ideas directly, specifically, and offers â€Å"new American leadership for the country. † His tone is very magnetic and appealing, and it is quite pleasing to an American to hear that Kennedy thinks that America is a great country, but â€Å"it could be a greater† one. Whereas Nixon speaks with such composure and a serious-minded tone in his ad, it almost seems he is not excited (or even cares) to be there. The way Kennedy carries himself while giving speeches is an especially confident, poised, and self-assured one, so much that he even comments on whether if people think that America was doing everything satisfactorily, that he agreed with them, that they â€Å"should vote for Nixon†! Furthermore, on the Kennedy-Nixon debate, Kennedy appeared looking â€Å"tanned, confident, and vigorous,† while Nixon was â€Å"wearing no make up and a light-colored suit that blended into the background looking exhausted and pale, and sweated profusely. Also, Mr. Nixon’s tone is exceedingly formal, thus making him look a tad bit uncharismatic, (unlike his likable contender). His way of speaking directly to the camera and giving detailed answers to an offscreen speaker, presented him â€Å"as a though, experienced leader able to stand up to the Communists. † In general, while Nixon was not as charismatic and pleasant as JFK, he was a seasoned, experienced, and mature leader ready to stand up to Khrushchev. Moreover, Nixon kept arguing that while Khrushchev was a â€Å"cold, hard, ruthless man,† that we won’t â€Å"be coerced, that we will not tolerate being pushed around,† that he’d continue to â€Å"deal with Communism and the Soviet leaders†¦firmly, and always with vigilance. † In contrast, Kennedy attempted to turn his youth into an advantage, proclaiming in his acceptance speech at the Democratic Convention, â€Å"We stand today on the edge of a new frontier. †

HRM Case Johnson Assosciates

This case is about a software consulting firm, Johnson and Associates. The business was established in 1989 by James and Michael Johnson. The two brothers opened the business at a time when the computer market was prospering and the software market was estimated to grow from 17% to 20% worldwide. Their plan was to concentrate on three target markets for their products which included health and racquet clubs, independent insurance agents and wholesale distribution companies.The product that was being offered by the firm was a software that would automate day-to-day operational tasks for users and provide marketing information. The name of the software was ‘Club-Kit. Contrary to what the prevalent trend, the firm was focusing on one product. Generally in the market. Firms with many products were more successful. This was a problem for them, along with the fact that copies of successful software were made by competition and this declined the profit margin for the firms involved. T he firm comprised of four individuals, two brothers and two friends of theirs.James Johnson was the rains behind the product and had an inclination towards technology. Michael on the other hand was more charismatic and was responsible for marketing the product. Jackson and Wilson were the two friends on board with the venture. They had launched the business and were looking for ways to market the product. For that purpose Johnson and Associates should keep in mind the marketing mix elements in order to obtain success. The elements include distribution, price, promotion and the product itself. Mainstream advertising was a very costly option and the new firm couldn't afford it.The firm should rely on personal selling to a large extent and on advertisements in trade journals. Since Michael is a charismatic person he should go individually to people and try to market the product. Secondly trade journals are a very economical option for telling the details about the software. It could ma ke many people aware of the company and the product. Incidentally, the general trend was that Service and Support, instruction, distribution and marketing presence were key components to the success of specialized software.Hence the firm should focus on extending their reach as much as they can as they were focusing on just one specialized software. The decision of pricing the software had a divided vote, while two members were for keeping the price of the software fixed, the other two wanted it to be negotiable in order to attract customers. However I believe that they should set the price of the software at 700$. The overall reduction in price should be due to hardware, which wouldn't cause a decline in their profits.

Aceto 10K Essay Example | Topics and Well Written Essays - 250 words

Aceto 10K - Essay Example The companies are primarily located in the United States, Europe, and Asia-Pacific regions. The customers range from small enterprises to large firms (Aceto, 2014). The financial analysis was from the fiscal year that ended on June 30, 2014. The Human Health segment had net sales of $160,217, which represented a 23.6% increase from the previous year. The Pharmaceutical Ingredients segment had a net sale of $176,425, a 4.6% decrease from the prior year. The Performance Chemicals segment had net sales of $173,537, a decrease of 6.3% from the previous year. The Pharmaceutical Ingredients section seems to be the largest contributor to the net income of the company followed by the Performance Chemicals segment. Ironically, the two significant contributors dropped yet the overall net sales of the company increased by 2.1% to $510,179. It seems the vast rise in the Health Segment were enough to buffer the shortcomings in the other segments (Aceto, 2014). The company faces a lot of risks that could affect its financial performance in the future. Being a business that first sources before distributing products, it faces a significant challenge in case some of its suppliers close down or decide to sell their products. Also, low-quality products from the suppliers can affect the company’s image if the goods manage to reach the consumers. Another risk factor that could face the company is the increasingly invention of new technology in the health and pharmaceutical fields. For example, genetic engineering and gene-based medications could pose a big threat to the products of the

In past centuries work was often despised. why Assignment

In past centuries work was often despised. why - Assignment Example This theory has been explained by Douglas McGregor and is known as the theory X. This theory was published in 1960 in his book. According to this theory, all the employees are lazy, lethargic and sluggish. They do not have any ambition. They are not willing to work late hours and will never give a good output until they are severely treated. Or in the other case the mangers should make some sort of an agreement with them that if they complete a certain task they will be given so and so reward. The employer is believed to have no interest in the organizational goals and avoids doing work. He is selfish and self-centered, and is not willing to take responsibilities and take initiatives. The sole purpose of his doing the job is for money and getting security (Clark, 1995). These were the assumptions of the mangers, not the actual behavior. If theory X is considered we can see that it is based on extremism that is getting the job done either by implicit threats, and tight controls or be lenient and listen to the employee. Both of these approaches will result in low productivity and low output, for the former case the employers will deliberately produce lower outputs, and for the latter the demands of the employers will never end resulting in an ever decreasing work output. Therefore both of the approaches failed to increase efficiency and a new theory was introduced- theory Y (Chapman, 2010). This theory is quiet an optimistic one. According to this theory the managers assume that all the employers are lively, keen and interested in doing the work. They are ready to take responsibility of different works and are ready to take initiatives. They are interested in the progress of the organization. The people will complete tasks on their own without having any strict supervision and control because the employers are self-motivated and have made the goals of the company their motives and will

Apple company Research Proposal Example | Topics and Well Written Essays - 1000 words

Apple company - Research Proposal Example Server computers followed in the form of the Workgroup Server 80 and the Workgroup Server 95. The LC 520 was launched as a home computer. Further launches included the Performa 520, the Powerbook145B, and the first active-matrix 256 color screen PowerBook 180c. Other new product launches included the low cost audio Macs Centris 660av and Quadra 840av. The PowerBook Duo product line was further extended through the launch of Duo 250 and the Duo 270c (O’Grady, 78-84). This book gives information on the developments that occurred in Apple Inc. in the latter half of the 1990s. This information is useful in understanding that in spite of the frenetic product launches in the early 1990s, market share in the personal computer market dwindled towards the end of the twentieth century. This web page provides information on the developments at Apple Company during the first half of the first decade of the New Millennium. It provides the important information of new products along with the significant iPod. This book provides information on the numerous products launches that took place from Apple Company in the early have of the 1990s. This helps to understand the pace of product development at Apple Company in the

Fukuyamas Philosophical System and the Ethics of Biotechnology Essay

Fukuyamas Philosophical System and the Ethics of Biotechnology - Essay Example There is ‘something’ that separates humans from other animals. This concept leads to his other theories on bioethics. Such that experimentation on humans should not violate their dignity. And that the essence of being human should remain intact as this separates humans from animals. According to Fukuyama, factor X makes humans as the world knows them. It is the factor in the human body that cannot be reduced to moral choices, language, sociability, sentience, emotions, or any quality that has been put forth as a ground for human dignity. He terms the factor that is responsible for the dignity in mankind, the factor X. In other words, it is an ideology that each person holds. According to Fukushima, Jews, Christians, and Muslims share a common theme that the man is created in the image of God. This theory is the base for Factor X among those followers. Similarly, an atheist also has factor X, which can be a moral authority. Fukuyama is not against biotechnology. He is against violating the sacredness of humans. This concept might be abstract for scientists. Factor X cannot be calculated. It does not have that form that scientists would like to consider relevant. In fact, the concept of factor X is relevant to the person’s beliefs. Different belief systems generate different factor X’s. Such a thought might seem too spiritual for scientific study, but Fukuyama has dedicated his studies to preserve human sanctity. Francis Fukuyama, a bio–conservative, along with other writers such as George Annas, Leon Kass, Jeremy Rifkin, Bill McKibben, and Wesley Smith, opposed the use of technology to modify human nature. Fukuyama fears that the man's nature is the most precious thing that can be affected by the recent advances in human biotechnology.  

Comics History Essay Example | Topics and Well Written Essays - 500 words

Comics History - Essay Example The book is mainly autobiographical, as it draws on the experiences of Spiegelman's father during the World War II, and his own story as a graphic artist. The main theme of the book is the Holocaust It narrates Spiegelman's father Vladek's traumatic experiences during and after the Holocaust., at the same time, showing the trauma which the son Artie is going through in the present time. Vladek, a Polish Jew, has survived the Holocaust in Auschwitz, but his experiences have not removed his own racist tendencies. His wife Anja, Artie's mother, commits suicide soon after they come to America., which leaves a deep scar on Artie's mind. Vladek marries Mala, whom he treats with the same insensitivity. Spiegelman uses allegory, portraying humans of different nationalities as different animals. In Maus, the Jews are depicted as mice, the Germans as cats, the Poles as pigs, the Americans as dogs. There are other animals like the reindeer, the bears depicting the Russians, frogs, the French and the English, fish. Maus takes its name from the German word for mouse. Mice, which are used to represent the Jews, are small, timid , harmless creatures the qualities which the Jews are supposed to possess. At the same time, they are dirty, disease carrying vermin according to the Nazis. Mice are also very resourceful, a characteristic of the Jews.

Playing Wii Games to Playing Real Games Essay Example | Topics and Well Written Essays - 1000 words

Playing Wii Games to Playing Real Games - Essay Example The paper explains the importance and role of the games in our life. Sports like hockey, soccer, rugby and boxing require a lot of physical stress and stamina. These sports are considered healthy as well as tough. They help humans in maintaining a healthy body. The efforts required for these activities fulfill the criteria of exercise needed to keep a healthy body. These exercises increase one’s heart rate, glucose breakdown, and stamina. The movements, power and strategy involved in these activities put one’s mind and muscles to work which in turn shapes the body in to an ideal body. Wii gaming system was released in 2006 by Nintendo. â€Å"Wii is actually an exergame. That is, it’s a video game that requires players to use actual physical movements to manipulate the action. Employing a wireless handheld controller with acceleration sensors and an infrared camera built into the console, the Wii senses players’ Motions and translates them into on-screen movement. For instance, in Wii Tennis you swing the controller like a racket; for Wii Golf, the controller is your club†. ... These sports are considered healthy as well as tough. They help humans in maintaining a healthy body. The efforts required for these activities fulfill the criteria of exercise needed to keep a healthy body. These exercises increase one’s heart rate, glucose breakdown, and stamina. The movements, power and strategy involved in these activities put one’s mind and muscles to work which in turn shapes the body in to an ideal body. Wii gaming system was released in 2006 by Nintendo. â€Å"Wii is actually an exergame. That is, it’s a video game that requires players to use actual physical movements to manipulate the action. Employing a wireless handheld controller (about the size of a TV remote, ironically) with acceleration sensors and an infrared camera built into the console, the Wii senses players’ Motions and translates them into on-screen movement. For instance, in Wii Tennis you swing the controller like a racket; for Wii Golf, the controller is your cl ub† (Anders). Wii has released almost all the popular real world sports games such as boxing, tennis, golf and baseball so its range of games encompass many of the real sports. As mentioned earlier in order to play these games, one needs to mimic the exact movements in front of the screen as used in playing real sports. The player’s actions in real time resemble very closely to actions performed in playing real sports. Playing Wii games helps burn calories just like in playing real sports. Moreover, players even perspire while playing Wii games. â€Å"In fact, in addition to burning the most calories, boxing was the only Wii game tested that would be considered intense enough to maintain or improve cardiorespiratory endurance as defined by the American College of Sports Medicine (ACSM)† (Anders). The

Electric Sources and their common use Essay Example | Topics and Well Written Essays - 250 words

Electric Sources and their common use - Essay Example e advantages associated with this form of energy generation include environment friendly generation in terms of the carbon dioxide and other poisonous gases. On the physical waste emission front, its wastes are considerably more dangerous than other forms of energy generating sources. They can harm the living beings on earth, and also in water if the waste is drained into the rivers. The amount of water used in these power plants is also a contentious issue since it brings the sea life in direct contact to nuclear material. Over period of time, number of nuclear power plants has gone wrong and have resulted in massive destruction. Though they are the alternate source of energy, and with lots of promise, yet they have their own issues as well. Their installation also requires heavy investment. In U.S.A, the Nuclear Regulatory Commission ensures putting necessary restrictions on the power plants operators to ensure safe and productive working with no human life at direct threat

Disabled People and the Rights to Social Citizenship Essay

Disabled People and the Rights to Social Citizenship - Essay Example The British government has proffered different definitions of a citizen as components of the various solutions proposed in respect of the extent social, economic and political problems and these solutions have affected the rights of individuals (Young, 1985). The Conservative government under John Major introduced a Citizen’s Charter in order to subject public services to market forces. Accordingly, citizens obtained the right to choose. This development in conjunction with privatization was considered to be the panacea for the ills of the inefficient public services. Citizenship can be perceived either by the individualist approach in which the nature of citizenship is determined by individual choice or the structuralist approach in which the determining factors are social and economic in nature. Further, â€Å"Choice-based theories are exemplified in their purest form by economics†¦. In this world, individuals seek to maximize their utility by obtaining the highest ret urn at the minimum cost from any course of action which they undertake† (Pattie, Seyd, and Whiteley, 2004, pp 138-139).Consequently, â€Å"Citizenship is a status bestowed on those who are full members of a community. [and who] †¦are equal with respect to the rights and duties with which the status is endowed† (Marshall, 1950, p. 28). These rights are of three kinds civil, political or social. The Civil rights are, â€Å"liberty of the person, freedom of speech, thought and faith, the right to own property and to conclude valid contracts, and the right to justice† (Marshall, 1950, p. 10). Political rights comprise of â€Å"the right to participate in the exercise of political power† and social rights are â€Å"the whole range from the right to a modicum of economic welfare and security to the right to share to the full in the social heritage.

Evolution of Affirmative Action in America Essay Example for Free

Evolution of Affirmative Action in America Essay Affirmative action in America refers to policies that take ethnicity, race, and gender into consideration in an effort to encourage equal opportunity. It started as a device to deal with the enduring discriminations among African-Americans in the 1960s. Focusing particularly on jobs and education, affirmative action policies mandated that active measures should be taken to make sure that blacks and other minorities benefited from equal opportunities for financial aid, scholarships, school admissions, career advancement, salary increase, and promotions that had been practically the whites’ exclusive province. The thrust towards affirmative action is twofold; including the rectification as a result of involuntary, institutional, or blatant discrimination, and the maximization of the advantages of diversity in every levels of society. In 1964, the landmark legislation of Civil Rights Act was signed into law, which prohibited employment discrimination by large employers, regardless of their previous contracts with the government. President Johnson developed and enforced for the first time the country’s affirmative action through the Executive Order 11246 of 1965 and amended it in 1967 through Executive Order 11246 requiring every government contractors and subcontractors to observe affirmative action so as to expand employment opportunities for ethnic minorities and women. However, the 1978 decision of the United States Supreme Court in the University of California v. Bakke, 438 U. S. 912 ruled illegal the practice of the University Medical School of setting aside 18 seats for minority students in every incoming class of 100, but upheld the use of race as one aspect in selecting qualified applicants for admission. Opposition to affirmative action has resulted to numerous legal challenges, which required local and states governments to draw on more comprehensive evidence of inequalities to validate the need for the programs. In 1998, both the United States Senate and the United States House of Representatives prevented efforts to abolish particular programs of affirmative action. Amendments to eliminate the Disadvantaged Business Enterprise program sponsored through the Transportation Bill were rejected by both houses, and the upper house rejected an endeavor to abolish the use of affirmative action in higher education admissions programs supported through the Higher Education Act. Throughout these periods, affirmative action has been both ridiculed and praised as a response to racial inequalities. The opinions of the Supreme Court justices in affirmative action cases have been generally divided partly because of conflicting political beliefs but moreover because the issue is basically so complicated. But in 2003, the landmark case involving the affirmative action policies of University of Michigan, which became one of the most imperative rulings on the issue in 25 years, the Supreme Court finally and positively supported higher education’s right of affirmative action. The Court held as constitutional the use of race, among other aspects, of the University of Michigan in its law school admissions program given that the program advanced a compelling interest in achieving an educational advantage that flows from the diversity of student body. At present, statistics proved that affirmative action has helped strengthen the black professionals’ ranks, yet African-American in general has been left behind. Notwithstanding all the discussions of the establishment of a black middle class, the position of the black community to white American has relatively remained the same. As such, affirmative action must be continually asserted to put in place mandatory and voluntary efforts by local, state, and federal governments, schools, and private employers to combat inequalities and encourage fair hiring and promotions of qualified individuals.

Musical Form And Structure

Musical Form And Structure What is the difference between music and noise? In a personal point of view, one important difference is that music makes sense. It has its own structure, basic patterns and it shows how composers made the pieces by their logic as well as their elaborate management. Therefore I would say, a piece without any structure and form can be only called noise instead of music. To research the structures and forms of a piece, we have to know what the structure is as well as what the form is, when I was studying in schools, I thought the structure is the different themes and how they were connected to each other; the form would be sonata form, ternary or something like minuet. After getting deeper into some Twentieth Century composers and their music, I realized it is not as simple as that. Firstly, the structure in music means the complex composition of musical knowledge or experiments as elements and their combinations. And the form in music means the shape and the figure throughout the whole work. I consider that in music, structure and form are both extremely important somehow we can analyze structure by a macro view and seek form by a micro view. Children who study in music schools learn some early period formal music structures and forms such as analyzing pieces by Bach and Beethoven We all knew about many basic forms in music since childhood. But in the modern world, music gets mystic and complicated. For some audiences, it is impossible to realize any structure in contemporary music such as John Cages piece: 433. They think the piece was just composed like a blank paper. Structure and form seems never existed in this music. I have to say, people whom consider contemporary music does not have structure or form just do not understand the music itself at all. Everything has a reason to be there, such as composers have their own notions of creating music. To prove this view, and to show the forms and structures in John Cages 433, I will analyze this piece below. 1. Introduction John Cage has made a huge experiment on this composition 433 to the world. Unfortunately the first performance of this piece was like a scandal. It was written in 1952, his so-called piece in silence. Performers basically go on to the stage and play nothing for exactly four minutes and thirty-three seconds. At the premiere some listeners did not even realize they had heard anything at all. Obviously audiences were angry and felt being deceived after the concert. The premiere was performed by the young pianist David Tudor at Woodstock, New York, on August 29, 1952.1 433 was written for any instrument or any instruments combination. NOTE: The title of this work is the total length in minutes and seconds of its performance. At Woodstock, N.Y., August 29, 1952, the title was 433 and the three parts were 33, 240, and 120. It was performed by David Tudor, pianist, who indicated the beginnings of parts by closing, the endings by opening, and the keyboard lid. However, the work may be performed by (any) instrumentalist or combination of instrumentalists and last any length of time.2 FOR IRWIN KREMEN JOHN CAGE _________________________ 1 J.Cage, Silence: Lectures and Writings (USA, 1961), 102. 2 J.Cage, A year from Monday: new lectures and writings (USA, 1985), 77. From the statement above, we can already see some basic structures in this piece: it is divided in three parts, and the lengths of them were 33, 240 and 120. (There are two ways of dividing this music, which I have mentioned below) 2. Materials John Cage has used a few materials, or elements to compose 433. Through this piece, Tacet (As the image of the score shows) is one of the materials. However, another material which people always ignore is the division of tacets. Image of John Cages writing of this piece Base on the score, Cage used division twice to make three tacets in the whole piece. And these two divisions and three tacets formed this composition logically, thus:  ¼Ã‹â€ I ¼Ã¢â‚¬ °TacetDivision ¼Ã‹â€ II ¼Ã¢â‚¬ °TacetDivision ¼Ã‹â€ III ¼Ã¢â‚¬ °Tacet 3. Analyze Cage has clearly shown the tacet in this piece. But about the division, we can analyze it in different ways. If we think mathematically, use tacets and divisions to build a function: If division is independent variable x, the musical form is dependent variable y, then based on the function mode y=f(x), we can get this: Form = Tacets (Divisions) Now we calculate this mode, we get two different results: 1. Tacet-Division-Tacet-Division-Tacet If we make Division bigger and bigger, then it becomes the part of the piece, (as important as tacets), therefore we can get this musical form: A-B-A-B-A 2. Tacet-(Division)-Tacet-(Division)-Tacet If we make Division smaller and smaller, until it has but only has the ability of dividing Tacets, then we can get this musical form: A1-A2-A3 Those two forms we all have studied in early schools, so I am not going to talk about them further here. As we can see from this image statement, John Cage has given some freedom in this piece to the performers The performance in Woodstock gave the timings 33, 240, and 120, but the original print program says that the timings were 30, 223, and 140. Also as I mentioned above, this silent piece could be played by any single instrument or any combination of instruments. It is a freedom piece But that does not mean this piece has no form however it divides, we can still find the forms. People may ask, although the piece has a form such as A-B-A-B-A or A1-A2-A3, it still does not have a very convictive structure. How did John Cage make three movements out of this piece and how did he determine the length for each of them? These three parts seem unlikely balanced and managed. Well, in that case, Cage has pointed to this particular Tarot card formation when shown a number of possible configurations: This is one of the most complicated configurations and is organized in three parts of concentric horseshoes. Each horseshoe has represented one movement, with these cards which bearing a length that could have been plus to the duration of each movement. The point above seems to be able to answer a lot of questions about the structure of this silent piece. It illustrates how the movements were built up by those little silent cards, also how the composer can know when a movement finishes, why he made this piece into three parts. Somehow these questions seem to have a greater effect on what we hear. However, we can suppose that he used these cards for his composition and it shows the decision of three movements. When people asked about the differences in time lengths of the scores, Cage said that it could be of any length. This does not mean that the formal structure of this piece could be violated at all. He said that it would still be titled 433, also the durations of the movements mu st be determined by some type of chance procedure, and it must be in three movements. 3 This piece seems to be very difficult for performers after seen this Tarot Cards formation. Because it becomes so easy to make mistakes and miss the beats. But Cage said that this is not the point. The point is about the feeling it creates, both the performers and audiences are dispensable. What the piece needs is a devoted and interesting listener. However, those methods which Cage used for 433 have offered the audiences a huge freedom area. The point, the meaning of this piece has changed. Normally we try the best to do what composer says on the score, now we do what we feel and define our own potentials. The structure that Cage used was mathematical for composer as well as humanized for performers and listeners. Although this piece has no harmony and melody lines, it still has a strong meaning. The spirit of Cage, like what Alex Ross said about this piece in his book The music was the sound of the surrounding space. It was at once a head-spinning philosophical statement and a Zen- like ritual of contemplation 4 To conclude, structure in music is the sense which composer has given; form in music is the shape and the propriety which composer wants to represent. In the premiere of 433, audiences were angry and negative, but after understood the inner sense and getting deeper into the purpose of Composer, people loved it. When you could not find the structure or the form in any particular piece, it does not mean that they were not existed. As I have said, everything has a reason to be there, such as composers have their own notions of creating music. The real music only appears after researching and understanding. ______________________________ 3 J.Cage, Silence: Lectures and Writings (USA, 1961), 109 4 R.Alex, The Rest is Noise, listening to the Twentieth Century (USA, 2007), 401 Selected bibliography: Books: -J.Cage, Silence: Lectures and Writings (1961, USA) -R.Alex, The Rest is Noise, listening to the Twentieth Century (2007, USA), 401 -P.Yates, Twentieth Century Music (1967, London) -J.Cage, A year from Monday: new lectures and writings (1985, USA), 77. -P.Marjorie, J.Charles, John Cage: composed in America (1994, USA), 193 Articles: -L.Eleni, Learning from Masters of Music Creativity: Shaping Compositional Experiences in Music Education, Philosophy of Music Education Review, 15.2 (2007), 93-117 -C.Hong, John Cage with his silence piece, Zhong Hua Music Review, 17.2 (2003), 78-92 Websites -S.David, Unreconstructed Modernist, the Atlantic online (Accessed September 1995), http://www.theatlantic.com/issues/95sep/boulez.htm

Marketing Orientation With In The Renault Company Marketing Essay

Marketing Orientation With In The Renault Company Marketing Essay Harris (2002, p. 247) Defines Marketing Orientation as The extent to which an organisation is perceived to act in a coordinated, customer and competitor-oriented fashion. Narver and Slaters (1990) also confirm there are three dimensions of Marketing Orientation, customer orientation, competitor orientation, and interfunctional coordination. This marketing concept involves three essential steps in being customer-focused. First, the wants and needs of the customers are researched and identified. Then, the research outputs are studied by the marketers and new products are created based on the consumer needs. Finally, customer satisfaction is aimed after public awareness and introduction of the product is made. A marketing-orientated business is characterised by various attributes. The company makes good and extensive use of marketing research, develops new and broad products, highlights product value and benefits, uses product innovation methods, and designs supplementary services or customer benefits such as delivery, installation, warranty, and credit availability. All these are geared toward customer advantage. Marketing orientation has three common alternatives which can be adopted by a company and these are sales orientation, product orientation, and production orientation. Looking at Renaults orientation, the conclusion that we have made is that Renault is a market orientated organisation. The reason for this conclusion is Renault is very focused on the needs and wants for the consumer. They have different types of cars focusing on different markets for their customer base. For example, Clio which is marketed at young adults who may have a low budget for purchasing the car. On the other side of the spectrum where the Laguna or Megane could be classed as a high specification family car. Also Renault has many of these cars in a range of sports models. Due to the nature of the business which Renault is involved in they have had to diverse the range of car models which they sell due to its competitors. For example Ford and Vauxhall. Another good example is Renault are in the process of developing hybrid cars and electric cars within its car range. According to Renault (2011) the first electric car will be sold in Israel in 2011 and then in other countries. The reason for this has come from customer demand, consumers are more aware of rises in fuel prices and carbon emissions. This would be a classic example how Renault is a market orientated company. In terms of RD Renault listen to their consumers as different customers have different types of criteria when purchasing a car. Mack (1996) states That to reinforce customer loyalty they involve existing customer in the design of its cars. According to Renault (2011) Renault- Nissan Alliance spend 4 billion Euros on the investment on electric parts. Many Eastern European countries would have a different specification of a car compared to someone in the UK. For example countries such as Bulgaria and Romania need cars that cater for larger families. Also some countries may not require a car which has a soft top due to climate conditions being different in comparison to a country where the weather is hot. Countries where the weather is constantly warm may require cars to have air conditioning. The Renault car called Dacia Logan has created in 2004, this particular type of car was designed for people in developing countries of the world. The car was first sold in Romania at a very cheap price of 5000 Euros and then moved into South America and India after proving a success when the car was first launched. Demographics would play a major role in the RD aspect of the business so Renault would know where and how to market their final end product. Boddy (2008) defines PEST analysis as A technique for indentifying and listing the political, economic, social, technological, environment and legal factors. Political Factors: The political factors in any country are largely responsible to alter a business environment as company may decide to change its business strategy based on the political scenario of the region it is based in. The government of any country regulates power supply, telecom and postal services and finance. The following are the political factors that affect Renault within the UK. Current taxation policy: According to the Trade and Investment minister Digby Jones the UK is becoming least attractive to work and invest due to the taxation policy, which was under pressure from opposition to tax rich foreign investors doing business in the UK. Thus the labour party proposed a cut on taxing investors who are non-UK domiciled. Also a worth mention is VAT which means value added tax. It is charged on most goods and services that are VAT registered. The recent recession has affected a lot of businesses most importantly the car manufacturing in the UK, it can be seen as going through a bad phase for the automobile industry. Thus UK motor agency served a budget to the current Government in the UK and urged it to create a right mix of policies to sustain growth in the segment. Renault decided to follow the following measures to counter any future threats in regards to financial aspect of the same by the following measures: Continue to put pressure on banks to give more loans Support automotive council Freeze fuel duty Following the Kyoto protocol, more political pressure has been imposed to the polluting industries. Regarding the car market, Governments across the world have established some environmental penalties and bonuses to manufacturers and consumers. For customers, they need to pay a tax to the government according to the level of CO2 emissions. This can have a massive influence for buyers, especially with sports car and ones with large engines which are regarded as the most polluting. Economic factors: Osbourn (2011) mentions Chancellor of Exchequer made a budget statement which is meant to reform the nations economy and this time the budget is neutral and also becomes the best place in Europe to invest, which is a good sign for car manufacturers as certain taxes applicable have been cut and import duty has been significantly reduced, which is a sign of relief for car manufacturers. Godlevskaja et al (2011) states: Many OEMs are expanding their model lines to entice new customers and increase overall customer base range. Often at their competitors expense. At the same time growth increase is limited within the auto mobility industry as a whole. in the EU new car demand fell 7.8 per cent to 14.7 million units in 2008 that reflects consumer concerns about the economy the buying power from consumers this could have been down toward the recession, despite this Renault would continuously market themselves to its potential consumers. Having customer awareness makes people want to purchase their vehicles with newer models being introduced. Sociological Factors: These factors constitute various social factors such as cultural aspects, demographics, lifestyles and attitudes. For e.g. Whatever works in one country may not be successful in other, Renault may sell racing cars in France but for a market like India it needs to launch small cars as in this country small cars are much in demand due to the infrastructure of the company and population size. Demographics: Renault is the third largest car manufacturer in the world with its presence across Europe, Asia and even Africa thus it needs to proactive rather than reactive in development in these countries. Its policy of developing strategic alliances with local manufacturers helps it to get an edge in the global scenario as locals know their home market better, they use a tried and tested marketing strategy of targeting the right market segment to see if it works sells. Such alliances apart from fostering industrial harmony also helps in sharing of technological aspects of each firm, and helps develop new products such as the concept of electrical cars to save fuel and protect the environment. Though Renault is a French company it has alliances across the Globe that helps it foster multicultural aspects. In which the sentiments of local population are not hurt as they continue using the same product such as in case of Romania and Korea. Where in Renault acquired Dacia and Samsung motors respectively. Such alliances also help it to launch existing vehicles from one region to the other, also known as market development from Ansoffs matrix. Alà ¡ez-Aller et al (2010) states knowing your customers needs and wants are vital to success to entry strategy within new regions. In depth analysis of macro and micro environment is key when consumers are looking to purchase vehicles. Technological Factors: Any company from any sector catering to any segment needs to change at some point, in order to grow and survive the growing competition from consumers and competitors. Godlevskaja et al (2011) states: Firms must constantly adjust their service portfolios because it is important for companies to have a dynamic service portfolio that is adapted to various customer needs. Consequently companies that fail to do so lose in the long term as the outside world is very competitive and brutal to securing a position in the market. Companies worldwide spend millions of money just to make sure that they do not lag behind if they lack the technical expertises. Renault (2011) quotes directly from its website: Renault is committed to the development and implementation of new technologies into every aspect of our vehicles. Renaults engineers cover every angle roadholding, safety, comfort, soundproofing, etc. in their relentless quest to make motoring a pleasurable experience. Porters five forces analysis and criticism In order to settle a strategy, a company must analyse its industry. However the analysis of its competitor is not enough to understand all the aspects of the business. The types of businesses are various and numerous. But in almost all the industries, Michael E. Porter has identified a common structure composed by five global forces. These are to take into consideration in order to implement a successful strategy. 1. The Analysis For our topic we will consider these five forces within the car industry adapted to the Renault Company. Rivalry among existing competitors Strong competition Very strong competitive rivalry in the cars sector, especially with the brands focusing on a particular market segment. E.g. Audi are becoming leaders on high standard quality cars, while TATA is undertaking the low cost cars segment The Asian manufacturers have a very strong growth thanks to their low cost cars and their quality car is very reliable. E.g. KIA and their 7 years warranty. The structure of the automotive industry is becoming more and more powerful because of all the merges and the joint ventures, so the competition is strong and aggressive. The threat of new entrants Low threat Few new brands entering on the market for these important reasons: The investment that has to be made is extremely important. Especially in the manufacture part of the activity, where the investment must be important if the brand wants to get a competitive advantage The experiment and the know-how are essential elements to have its place on its market, in particular on management of the costs and the competitiveness. The competitors already present are already well known brands. All these companies trend to be restructured into fewer big groups. These implicate that they are more powerful and do not let possibilities for any small new company to enter in the market The threat of substitute Mild/ Relative Threat Even if there are the other ways of transportation, the car remains indispensable nowadays. It is true that sometimes changing the transportation way can have some advantages as the cost (with the low cost airline carrier), the ethic of environment (with ecological way of transports such as trains or the buses) or time in important factor within lsrger cities (with the underground), none of the transport way offer a good mix of utility, convenience, independence, and value afforded by automobiles. Nowadays, the automotive companies have a wide range of product, which can satisfy every demand, in adapting their cars in satisfying every new need, that increases the loyalty of the consumers to use cars. Bargaining power of the suppliers: Dependence Suppliers/Customer The purpose is being to establish a profitable, reliable relation for both parts. But the parts suppliers are sometimes small manufactures so Renault has more pressure to put on its supplier in terms of price However the image of Renault, as a reliable car company also depends on the quality of the car parts Suppliers are also important to Renault in terms of costs, according to Renault (2011): Suppliers account for 80% of total vehicle production costs. It is therefore essential for Renault to gain their commitment and to make them part of its approach to sustainable development Bargaining power of the buyers Strong power of negotiation The consumers are the target of communication campaigns and marketing actions because it is more and more tempted to try other brands The final product are standardised, customers can put the pressure on the different vendors insisting on the fact that an equivalent car can be find from another company for approximately the same price The negotiation can be in the price, but also on obtaining more options or services with same price. This affects the costs to organisations 2. Criticism of the Porters analysis The three new forces The Porter analysis remains one of the most influential marketing and strategy tool. However this analysis has been written by Porter during the 1980s, and the economic world has considerably changed during the last decades. Especially due to the Internet and all the e-business that make evolved most of the industries. Larry Downes, co-author of Unleashing the Killer App: Digital Strategies for Market Dominance relates in the article Beyond Porter that the Porters five forces analysis is no longer a complete tool to opt for a viable strategy. He describes new strategic frameworks composed by three new factors (forces), which permit to analysis the business area more relevantly: The digitalisation Due to increase power of information technology, new business models will be born from the market. This allowed the global awareness of the consumers on the global market. The competitors will now not only be part of the same industry. Now the tour operator Thomas Cook can be a competitor of Renault. These two companies will push their clients to use their money to buy their product when there are the same prices According to Recklies (2008) The old economy used IT as a tool for implementing change. Today technology had become the most important driver for change. Therefore mindsets have changed for organisations and how they operate; the final end product will require an element of technological advances for it to successful in modern society due to social factors. The Globalisation The globalisation of the market is nowadays something that a company cannot afford to ignore. The effects of the globalisation on businesses are betterment in the areas of distribution logistics and communication. The Global companies have to adapt their strategies in function of the global network. These strategies remain more complex than what Porter describe. Its not a question of price or quality for the customers, but trying to reach a type of loyal relationship with a network of partners and consumers. The deregulation One of the big changes in the business from the Porters model is the taking into consideration of the intervention of the governments in the business and in the industries. Because of the action of the states (new laws, new quality requirements, new importation/exportation quotas) the industries and the organisations have to adapt their strategies, finding new alternatives to their business models. These factors became important but they rarely appear into the Porter analysis. So an important Company like Renault cannot focus on this tool to create a solid and successful strategy. The purpose of the five forces model is to define the attractiveness of an industry in relation with theses 5 forces. But according to Dagmar Recklies: In economics, the constellation of factors determines issues like profit maximisation or supernormal profits.   So we can conclude that the Porters five forces analysis is a strategy tool that can be used only knowing its limitations and among others tools to be the base of a correct strategy. Place Jobber (2006) defines price as The agreed value placed on the exchange by a buyer and seller. Price is one of the fixed key factors in the marketing mix and should be blended together with all element of the marketing mix, to create customer value. It can be argued then that price interlinks with the other elements of the marketing mix and must be met by supply and demand to achieve its best. Price in the marketing mix is very important to a business as it can determine if a company is successful or not when selling the product, it can be perceived that price can reflect quality when selling to consumers. The price can affect the following areas so its pivotal to have the right pricing strategy to market the right product. Price can include the cost of production to an organisation and the strategy they use to market the product at a competitive price so consumers decide to use you, rather than your competitors. The price of a product can be sold at a cut-price to boost volume of sales. This can be a strategy used by organisations to gain market share which can have its positives and negatives. Walker (2006) states Having low prices may be perceived by consumers as being low quality. Organisation may market themselves so they may be seen as obtain profits on a short term basis. This is where promotion can be interlinked to a pricing strategy. Organisations spend vast amounts on RD before setting prices on products. It can be argued that firms must price the product in a way which reflects the appropriate position of the product within the market. The balance for organisations is to maximise profits, but to have a consistent amount of sales. Marketers use this strategy as they maybe price orientated within the marketing mix. This is where product development would occur and knowing your target market well. Renault uses price within the marketing mix very well. Throughout its range of cars they have luxury cars including the Laguna all the way down to the Clio which is targeted on price with low maintenance costs. In terms of price to the Renault Clio it can be seen as being priced similar to its major competitors. Considering the Vauxhall Corsa, Ford Fiesta and also Peugeot 206. The pricing strategy of the Renault Clio new ranges from around  £9,000 to  £19,000 plus. There are many factors that can influence the prices of just one particular type of car. For example engine size, motor sport version etc The Clio range has the sport 2000, Dymanique, Gordini and also Bizu. This shows that the product has been diversified to achieve maximum price when selling the product to consumers. Clio Series Price Sport 2000  £16,000 Dymanique  £11,000 Gordini  £19,000 Bizu  £9,000 Walker (1996) shows that all other competitors i.e. Corsa and Fiesta are based around the same pricing strategy. This is because the car industry is large and production costs are not so important and creating the largest profit is not as necessary as it would be for a smaller organisation. The reason for Clio having the same pricing strategy as its competitors is because it is the only model in Renault range to predominately focus on lower cost with low quality from launch. Therefore it needs to be competitive with its rivals. The Clio model has done this very well as new models for the Clio are designed every few years. The Clio has been on the market for over 15 years proving its successfulness to its consumers who are aware of other markets available to them. The following is a perceptual map of small commercial cars sold and its comparison with the Renault Clio. It can be seen that the Clio and Corsa can be placed in the same category as each other, as both focus on price mainly. Other small cars including Audi and BMW focus on both high quality and price as the reputation they have is that its a long term investment. The Skoda Fabia is a low priced car because of the reputation it held from its unreliable past, but its reputation has slow been built back up. High Quality *BMW 1 Series Audi A4* *Skoda FabiaLow Price High Price Vauxhall* Corsa *Renault Clio Low Quality Relationships can be built up between the consumer and the seller. Mack (1996) states that Renault try and use this strategy as much as possible when selling cars. But why do this? They do this to make the consumer feel they are receiving a personalised service. Some dealerships offer free gift as an indirect way of making customers by their product too its competitors. Walker (1998) also says This has been a vital part of our strategy in helping to persuade customers that we can meet their needs especially targeting smaller cars. However it can be argued this strategy possibly may not work in modern society. As many people are aware the automotive industry is very competitive, it is becoming quickly cost orientated in particularly markets, indirect costs such as fuel, insurance and tax. Trade-off analysis could be applied to the Renault Clio. Jobber (2006) says Features such as speed, petrol consumption, brand and price are placed in front of consumers and asked which combinations they prefer. While the Clio Mk 3 was being designed it would have consulted potential buyers, they would have used rd for this because the car was designed to be low cost and wanted as many luxury as possible while concentrating on its core competence its price. However this analysis can have its limitations. When rd is taking place respondents may ask for a lot of things but all these additions may not be feasible. When asked to purchase the car consumers may not be willing to exchange money. Product Jobber (2006) defines product as A good service offered or performed by and organisation or individual, which is capable of satisfying customer needs. To have an effective product that consumers desire, it needs to be prices fairly and requires a Unique Selling Proposition. (USP) Walker et al (1998) states there are four elements which creates a well balanced and successful marketing mix. These included: Matching customer needs Need for balance Creates a competitive advantage Matches corporate resources The product Renault Clio has historically been targeted at the younger aged population who maybe on a budget. The product is a smaller model compared to other ranges in Renault yet also delivering the majority of luxury that other models offer. Including air-conditioning, climate control, Bluetooth and satellite navigation, this makes Clio very positive when it advertises the model to its consumers. The Clio then however meets the criteria set to have an effective marketing mix. Jobber (2006) states that Product development is important. As technology and tastes change, products become out of date and inferior to those of the competition, so companies must replace them with features that customers value. The fundamental feature of the new Clio model is the tom-tom feature. Renault and tom-tom have had to come to an agreement to include the satellite navigation to integrate this within the models. This has given Clio a competitive advantage over external competitors. Having a competitive advantage enables them to charge a premium price. However in few cases charging a premium price for products can have its down fall. Many consumers may not be willing to pay extra for products that may not be essential, consequently consumers will move to Clios competitors such as the 206 and Corsa. The balance is conducted by market research to see what consumers want, referring back to trade off analysis. According to Renault (2011) Clio is its most successful range of car across Europe. This is because the product caters for a broad range of markets. The reason for can be considered when looking at the anatomy of the Clio. The core product (I) would be the car itself and the way it is strategically priced, as being a low value priced car compared to its other cars within its range. The second layer would be products that add value to the overall product. Making it match customer needs and creating a competitive advantage. This could be as mentioned above, tom-tom, Bluetooth, keyless entry system, parking assist sensors and warranties. The outer layer includes extras which maybe indirectly related to the car including after sale support and credit sale. Many augmenting features are closely related to establishing a successful relationship between buyer and seller. A product life cycle (PLC) can determine where the product lies within its life. Many organisation use different strategies to pro-long the life of its product. When a product reaches maximum maturity and seess signs its declining it then considers using Product/Market Ansoff matrix. This involves 4 different strategies that can be used: Product development Diversification Market penetration Market development The reason for this is to maximise profits for Clio. Renault Clio mainly uses product development to change its model throughout years so customers have the opinion of upgrading and keeping up with trends rather than going to competitors. When the Clio was first launched it obviously begins in the introduction phase of the PLC and is strategically priced high. Jobber (2006) states that the Strategic marketing objective is to build sales by expanding the market for the product. The growth stage is next to follow, there is increase of sales and profit growth. The reason for this is due to increase in promotion by creating awareness. Renault Clio use TV advertising predominately to penetrate the market. They also have their own Renault TV channel. The maturity stage is where the product sales are at its peak whilst time is increasing. This is where the organisation may offer discounts or extra such as warranties. This is also the stage where product improvements occur at the peak of the maturity stage. The reasons for this include: Maintain competitive advantage Future growth First move advantage The decline stage is the final process of the PLC, the reason for this according to Walker (1998) is due to technological superior substitutes and also consumers change in preferences due to competition. The Renault Clio was an innovation that Renault developed due to competition from its competitors. According to Bloomberg Businessweek (2006) Renault was at number 49. Its competitors did not even reach the top 100 of innovated companies. Other automotive companies included within the list lower than number 49, Nissan and Volvo. This information could now be argued because companies such as Ford, Volkswagen and Toyota are much more innovated in 2010 as they have developed cars whilst considering external factors such as the environmental factors. (Development of the Hybrid car) Distribution Mix Marketing The distribution policy includes all decisions and actions that can be related to the delivery of our product to the customer. There are two different ways of distribution existing for Renaults company. Business to Business (B to B) = Company Retailer Consumer Business to Consumer (B to C) = Company Consumer Engineering Renault is one of the biggest car industries worldwide. It is present through the world in around 201 countries, including Europe, North, Central and South America, Africa, Asia and Oceania. An international engineering; closer to the markets. The Techno Center (France) Engineering: The Renault Group is deployed globally. It revolves around two components: Engineering Central, the heart of the system and regional engineering spread over Renaults strategic markets. Engineering centers: The Techno Center (France), the heart of the engineering world Renault Technologies Americas Renault Technologies Romania Renault Technologies Spain Renault Samsun Technical Center This organisation is based on a standardised process of engineering at Renault World of unified technical standards, defining key functions and technical harmonisation of policies. A well-developed network of design centers Renault Design America Latina in Sao Paulo The group relies on a parallel network of five satellites design centers. Observatories real trends these emerging centers of vehicles for new markets. They are involved from the launch of a new project through to the production of the final concept car. The design centers are: Renault Design Paris Renault Design Central Europe Renault Design America Latina Renault Samsung Design Renault Design India Two objectives are Warranty the best customer satisfaction all around the world Produce close to the markets Renaults industry realises two type of sell: Either to the customers or to companies. But, all confounded, Renault has realised for the Year 2010 reporting record sales volumes with 2.6 million vehicles sold. Thanks to its positioning, essentially outside Europe, in the emerging countries, Renault has bounded its sales. Heres a graph which represents the market where Renault is present in 2010: From: Renault Website It is important to understand that the Clio is one of the best vehicles brand for Renault. In about 20 years, it has won more than 10 million customers around the world (100 countries). This success is thanks to a styling, comfort, safety, versatility and different equipment package worthy of cars from the next segment up. Renault February 2011 sales in Europe region In February 2011, by Renault (2011) Website, its sales represent in Europe 28,350 cars sold, this means 29.74% are Clios models. Renault February 2011 sales in Worldwide region In February by Renault (2011) Website, its sales represent in Worldwide 40,969 cars sold, showing 27.15% are Clio models. In the following table are the most popular diverse ways to market the Clio model Place Advantages Drawbacks Car Dealerships This is the most pr

The Absurdity of Consumeristic Truth :: Essays Papers

The Absurdity of Consumeristic Truth Imagine a world devoid of a God, where tangible objects and experiences such as clothing and movie watching have come to define and fulfill an entire society. Imagine a culture lacking any philosophical truth, where each individual is running wildly about in their isolated schedules, gleaning comfort and love from any inanimate object that can provide such, in whatever shape or form. Imagine a world where imperfect humans turn to themselves in the search for perfection, and the ultimate source of perfection is blatantly denied for the simple reason that it is too perfect to be understood. Such is the world according to Camus, such is the world that surrounds those that believe in a perfect God, and such is the American world in which you and I live. If one were to understand the purpose and mystery of human life as the coping with ultimate fear, whether it be death, pain, or meaninglessness, then it is possible to discuss the drastically different coping mechanisms that Camus and Christianity set forth. Both present a method in which to approach the phenomenon of fear, yet when it comes to actualizing a solution to the mystery, they turn to very different ends. The result is a society that has been left all the more confused, and has turned to both solutions in order to deal with the overwhelming fear and fundamental lack of truth that is prevalent in today’s post-modernistic philosophy. Of the many themes and philosophies that Camus struggled with during his life and presented to the world through his writings, one of the more prevalent was that of the absurd. According to Camus, the world, human existence, and a God are all absurd phenomenons, devoid of any redeeming meaning or purpose. Through Mersaults’ epiphany in The Stranger, where he opens himself to the â€Å"gentle indifference of the world†, we see how Camus understands the world to be a place of nothingness, which demands and desires nothing from humans. He further explores this philosophy in The Plague, where the world of indifference is understood as a world of fear, which takes a symbolically tangible form in the plague itself. In The Plague the citizens of Oran fear that which they cannot control, understand or fight. They are faced with the most fundamental experiences of life and death, and it is only in the end that a very few find a way to cope with and understand these two ultimatum s.

Paper :: Essays Papers

Paper Since the recent terrorist attacks on the United States of America, politicians and policy makers are considering anti-terrorist legislation. This would include plans to implement a national identification card. The proposed national identification cards would include features such as magnetic stripes, holograms, and integrated circuits. â€Å"This magnetic stripe is expected soon to contain a digitized fingerprint, retina scan, voice print, and other biometric identifiers, and it will leave an electronic trail every time you use it†(1). I feel that since September 11, 2001, many Americans feel insecure and unsafe. Research done by the Pew Research Center shows that, â€Å"seven out of ten Americans favor a national-ID card program in which like the French system, the cards would have to be presented to the police upon demand†(2). In fact there are many developed countries that have a system of national ID cards such as: Germany, France, Belgium, Greece, Luxembourg, Portugal, Spain, Hong Kong, Malaysia, Singapore and Thailand. It should also be noted that there are many developed countries that do not have such a system: United States, Canada, New Zealand, Australia, Ireland, the Nordic countries, and Sweden. I think that the terrorist attack on the United States is unsettling. It makes you feel unsafe in your own country. I do not think that September 11 is a good reason for us to adapt a national ID card. Lori Cole, executive director of the Eagle Forum states, â€Å"We don’t want to see Congress pass something in a rush because everyone is fearful to get on an airplane right now† (3). I think that on February 20, 2002 Pramod Shrestha posted something on the discussion forum that was interesting about how national ID cards would combat terrorism, â€Å"Several countries including Hong Kong, Ma laysia, Singapore, Thailand and in most European countries have already issued National ID Card System, however, "no one has been able to identify any country where cards have deterred terrorists." If this is true then a national ID card system would not solve the problem it was proposed for. â€Å"National ID cards have long been advocated as a means to enhance national security, unmask potential terrorists, and guard against illegal immigrants† (4). In fact the chairman and CEO of Oracle recently advocated the national ID card system as a way to address airport security. I do not think that national ID cards will solve the problems that it proposes.

Green Capitalism Essay

Green Capitalism is a new approach for resolving the problem of environmental destruction while ensure the sustainable development of capitalism practices (Bess, 2000). The world is witnessing the effects of global warming. In addition, economic sustainability remains a major concern by the global community. Based on this, green capitalism concept dictates for use of green energy sources to support the economy (Bess, 2000). By ethics of care, individual humans must protect the environment for the good of the whole community. Critics have blamed capitalism for its exploitation of available resources without concern of the negative environmental implications of the same (Beaufoy, 1993). From an ethical point of view, green capitalism concept is quite limited in its practicability due to the fact that capitalism by its nature seeks to maximize profits regardless of associated consequences (Beaufoy, 1993). On the other side, green practices dictate for protection of the environment and its ecosystem. Thus, the theory of green capitalism remains a conflict between caring for the environment and maximization of capital (Beaufoy, 1993). True to the letter, the world is claimed to have enough renewable resources to sustain its population. Nevertheless, most of these resources like solar, wind, and tidal energies are unpredictable for supporting our current economic energy requirements. Still, the green capitalism concept advocates for reduced consumption of anti-green products in the community (Bess, 2000). This has an ethical implication of harming the global market capital, a claim that has been blamed for economic meltdown (Beaufoy, 1993). As a solution to these real concerns on green capitalism theory, there is need having in place other models of addressing the problem of environmental pollution. Just to note, the effects of capitalism are permanent trends that cannot be reversed if capitalism prevails. References Bess, M. (2000). Greening the Mainstream. Environmental History, 5, 12-18. Beaufoy, H. (1993). Case Study: The Green Office in Britain: A Critical Analysis. Journal of Design History, 6, 9-14.

What is life

What is life? Is it a mystery? Is it an adventure? Is it a way to help others? Or is it so brief compared to the rest of the time in the universe it has no meaning at all? People have been wondering this for thousands of years, yet no one has found an answer. Many look for complicated ways to understand life, yet the answer is so simple; life is a book. Since the day the binding was opened for the first time,and the author began writting the story; every thought, action, and emotion that is experienced is written into the book. Memory is just rereading the book. Some pages torn, stuck together, smeared so we can’t remember it as well, but it is all writtten down. Every hope, every dream, every fear is recorded in time forever. Some books have flashy, tacky covers, but tell the most troublesome stories on the inside. Some have dull, nondescript covers, but tell the warmest, most adventurous stories that causes one to recall some earlier chapter in ones own life. Every experience is a chapter. Some chapters speak of friends and family, some speak of the most horrible fears and the most dreamed about opes, and some tell of Love and Loss that the author experienced. Some chapters are not finished and will be completed at a later time. Some chapters are blurred, because not even the author knows what happened, or what he wishes would happen. And some chapters are blank pages, waiting to be filled. More than once, the author has wished he could go back a few pages and rewrite it differently, but alas, the book has already been published, and cannot be changed. As the book ages, it loses some of its shine, pages tear and fade, and the binding becomes loose. Some pages suddenly become so clear, you can’t understand why you didn’t see it before, while others become so transparent that you can’t even remember reading them. And after the book has become so old that it can’t even be read or moved without falling apart, it is taken out of circulation and stored. Not only in a physical place, but in people’s heart, those who loved the book as if it was their best friend. It is stored with every other book of every person’s life back before humanity could even speak with more than grunts and body langauge. It is stored in the Great Library. As you look around this glorous library, the books stack higher than any mountain, and strech farther than any eye can see. And on every shelf are books, and in the center of the room are thousands of books open to different pages and chapters recording the author’s dictations from the start of the book until it is finished and published. And then there are the old books that are being called out of circulation, catalogued and stored. You reach out and begin reading one of the many books. It is the life of your friend. You take notice of how many times your own book overlaps with your riend’s book, and how similar the stories are. As you read this book, you see the meaning of life, not what the stories are, or what the cover looks like, but how every book tells a different story; and while many may overlap and share dreams, hopes, and fears, they each contain knowledge and together make up life. You see, you can’t judge a book by its cover, nor can you judge a person by appearance, each complete with fears, dreams, joys, sorrows, memories, friends and familes. Together we all make up life, and our stories inspire others to grow and to have the best story they can.

Aqr Delta Strategy Essay

DANIEL BERGSTRESSER LAUREN COHEN RANDOLPH COHEN CHRISTOPHER MALLOY AQR’s DELTA Strategy In the summer of 2011, the principals at AQR Capital Management met in their Greenwich, CT, office to decide how best to market their new DELTA strategy. After launching in the late summer of 2008, the DELTA strategy had compiled an excellent track record, but David Kabiller, a Founding Principal and the Head of Client Strategies at AQR, was frustrated that the fund had not grown faster in light of its exceptional performance. In Kabiller’s experience, the combination of a solid track record plus an innovative product usually led to explosive growth in assets under management (AUM), but that had not been the case so far with DELTA. The DELTA strategy was a product that offered investors exposure to a basket of nine major hedge fund strategies. The DELTA strategy was innovative in two ways. First, in terms of its structure, AQR implemented the underlying strategies using a well-defined investment process, with the goal of delivering exposure to a well-diversified portfolio of hedge fund strategies. Second, in terms of its fees, the new DELTA strategy charged relatively lower fees: 1 percent management fees plus 10 percent of performance over a cash hurdle (or, alternatively, a management fee of 2 percent only). This fee structure was low relative to the industry, where 2 percent management fees plus 20 percent of performance, often with no hurdle, was standard. These features, while distinct relative to other related â€Å"hedge fund replication† products, had yet to fully resonate with investors, and Kabiller needed to decide on a more effective marketing approach given the large number of competitors entering this space. AQR AQR was established in 1998 and headquartered in Greenwich, CT. The founding Principals of the firm included Clifford Asness, David Kabiller, Robert Krail, and John Liew, who had all worked together at Goldman Sachs Asset Management before leaving to start AQR. Asness, Krail, and Liew had all met in the Finance PhD program at the University of Chicago, where Asness’ dissertation had focused on momentum investing. AQR’s over 200 employees managed $24.0 Billion in assets. A large amount of these assets were invested in hedge fund strategies. Professors Daniel Bergstresser (HBS), Lauren Cohen (HBS), Randolph Cohen (MIT), and Christopher Malloy (HBS) prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright  © 2011, 2012 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. 212-038 AQR’s DELTA Strategy Hedge funds Voor- en nadelen Hedge Fund: While open-end mutual funds had to register with the SEC, calculate and publish daily net asset values (NAVs), and provide investors with daily liquidity, hedge funds were not automatically regulated by the SEC and enjoyed as much flexibility as they could negotiate with their clients with respect to liquidity. In exchange for this light-touch regulation, hedge funds were restricted in their marketing: only high net worth and institutional investors could directly invest in these funds. Nevertheless, academic work had by the late 1990s established that hedge funds offered a risk exposure that was less correlated with broad market indexes than most mutual funds, and potentially offered high risk-adjusted returns. The performance of the hedge fund industry during the 2001-2002 recession was  particularly good; Exhibit 1 shows that while stock market indices (S&P and NASDAQ) fell dramatically during this period, broad hedge fund indices (e.g., DJCS_Hedge and HFRI_FW, which were designed to track the overall performance of the hedge fund industry) rose. In response to the perception that hedge funds truly offered outperformance, institutional money flowed into hedge funds during the late 1990s and 2000s, and the size of the industry grew rapidly. Exhibit 2 charts the growth in the number of funds and total AUM (assets under management) in the hedge fund industry since 1997. With this growth in assets and managers, questions began to surface about the role of hedge funds in a portfolio and whether there were other ways to capture those returns without being exposed to some of the negatives of hedge fund investing. Alternatives to hedge funds Although many investors were attracted to the possibility of obtaining high returns and/or low covariance with other investments in their portfolio, many still found hedge funds themselves to be unappealing. Among the reasons for their distaste were: a) illiquidity, b) minimum investment requirements, c) high fees, d) the difficulty of selecting the right hedge fund manager, e) the inability to gain access to high quality funds, and f) the lack of established benchmarks in the industry. Most hedge funds only allowed redemptions on certain dates – often at the end of each quarter. Additionally many funds had an initial lockup – that is, investors could not redeem from the fund for a set period after investing; the period was often one year though some funds had no lockup and others had locked up investors for as long as five years. Most funds also had a minimum investment size of at least $1 million. In addition, many investors found the fees charged by hedge funds, which often amounted to 2% of assets under management (some funds even charged the full cost of their operations to their funds, amounting to more than 2% management fees) plus an additional 20% of profits generated by the fund, to be excessive and hoped to obtain similar benefits at a lower cost. Some investors also found the idea of selecting a portfolio from the many thousands of available hedge funds to be an intimidating task, especially given the lack of transparency (both as to investment process and holdings) that was common among hedge fund managers. And of course even if  an investor could identify a set of funds that made up an attractive portfolio, the managers of those funds might not accept an investment at that time or from that investor. Finally, in contrast to the mutual fund industry, there was a lack of established benchmarks fo r hedge funds, making it difficult to assess skill versus luck and idiosyncratic versus systematic returns. While hedge fund indices existed, these were just peer groups, not true benchmarks, and were biased by a number of things, including style drift and survivorship bias. In response to these criticisms, alternative products were soon introduced into the marketplace. 2 AQR’s DELTA Strategy 212-038 Funds of Hedge Funds (FOFs) One popular alternative to direct hedge fund investing was the funds of hedge funds (FOFs) structure. FOFs aimed to take investors’ money and allocate it among a select group of hedge funds – sometimes among a small number (even in the single digits in some cases), and sometimes among hundreds of funds. onerous= burdensome/ heavy This approach solved a number of the issues facing hedge fund investors, especially those with modest capital. FOFs had less onerous liquidity rules than individual hedge funds, and FOFs were less likely to encounter liquidity problems than individual funds since they could obtain liquidity from a number of underlying funds. Still, FOFs were ultimately subject to the underlying liquidity (both with respect to liquidity terms and underlying holdings) of the funds they were investing in. In addition, a single minimum investment bought a portfolio of many funds, and an experienced and hopefully expert financial professional, or team of such professionals, selected the funds, and chose allocations among them that (presumably) produced a well-optimized portfolio. Finally, FOF managers  claimed that their experience and connections provided access to hard-to-enter funds. Thus FOFs presented an appealing package, and indeed close to half of all money invested in hedge funds came through F OFs. However, many investors were put off by FOF fees, which historically included an additional layer of fees often as high as half the level of hedge fund fees themselves (thus making total fees paid about 1.5 times higher than for direct investing). Multi-strategy Funds Another approach to obtaining an alternative-investment portfolio while avoiding some of the challenges of one-strategy-at-a-time creation was to invest in multi-strategy hedge funds. Such offerings were often made by large hedge fund firms that offered a variety of individual strategies. Investors might have the option to invest in a multi-strategy fund that allocated assets across the different silos within the firm. One major advantage of multi-strategy funds over FOFs was fees: multi-strategy funds typically did not charge an additional fee layer over and above the hedge fund fee (as FOFs did). Further, multi-strategy funds only charged performance fees when the total investment was in the money; whereas, in the case of FOFs and direct single strategy investments, an investor could be subject to performance fees even if the net, aggregate performance wasn’t positive. A second potential advantage of multi-strategy funds was in portfolio construction. Not only was the allocation among strategies performed by professionals, those professionals likely had a high level of insight and visibility into the opportunities available to the individual silo managers. Multi-strategy funds generally offered as good or better liquidity than individual-strategy funds, and of course there was no trouble gaining â€Å"access† to the underlying managers. Multi-strategy funds appeared to offer strong diversification, although in the famous case of the hedge fund Amaranth, investors thought they were investing in a diversified portfolio of strategies. However, extreme losses in one of the portfolio’s silos led to the loss of approximately 75% of total portfolio value. Consequently many investors felt they were not truly diversified if they had a large allocation to a multi-strategy fund, but this could be potentially mitigated through the right amount of transparency into the positions and  risks of the portfolio, or, of course, through diversification among several different multi-strategy funds, thereby minimizing single firm risk. silos= opslagplaatsen 3 212-038 AQR’s DELTA Strategy One potential concern with multi-strategy funds from the investor’s point of view was the question of portfolio manager quality. Although it was possible that a single firm could gather under one roof the very best managers in a variety of specialties, some investors found this implausible. Hedge fund replication Starting in 2006, a number of investment management firms also introduced â€Å"hedge fund replication† products. These strategies, implemented using liquid instruments, purported to give investors a ‘top-down’ exposure to the broad risk exposures of the hedge fund industry. These products could be viewed as an effort to provide ‘hedge fund beta,’ or the systematic part of hedge fund performance. The rationale for these products originated from studies of hedge fund returns that highlighted the idea that the line between ‘alpha’ and ‘beta,’ was potentially fluid. The alternative systematic exposures of hedge funds could be viewed as a kind of â€Å"exotic beta.† If hedge fund returns could be approximated with dynamically traded portfolios of liquid assets, then investors attracted to hedge fund returns, but potentially looking for a liquid or low-fee alternative to actual hedge funds could invest in a ‘hedge fun d replication’ product that attempted to mimic hedge fund returns using liquid assets. These top-down approaches aimed to use statistical methods to create a portfolio of liquid assets that had similar performance to hedge funds as a class. One top-down approach was to use linear regressions, or optimizations, to build a portfolio that had high correlations to historical hedge fund returns. An example of this  approach consisted of three steps. First one would obtain a long-run time series of returns on a diversified portfolio of hedge funds (e.g., the HFRI monthly hedge fund indices were commonly used). Then one would obtain returns on a large number of liquid investments-these could be indexes of stocks (e.g., S&P 500, MSCI EAFE, MSCI Emerging, Russell 2000, etc.), bonds (e.g., US 10-year government bonds), currencies (e.g., EUR-USD Spot Exchange Rate), etc. () Finally, one would use a standard statistical optimizer, or linear regression, to find the portfolio of liquid investments (either long or short and at weights implied by the statistical analysis) that most closely replicated the statistical characteristics of the hedge fund portfolio. Exhibit 3 presents the monthly returns from a set of indices that were commonly used for hedge fund replication purposes. 1 Specifically, the goal was to create a portfolio that historically moved as close to one for one with the hedge fund portfolio, so that it had high correlation with the hedge fund portfolio, and yet also matched other â€Å"statistical moments,† such as volatility, skewness, and kurtosis. Historically, and ideally on a forward-looking basis as well, this portfolio would fulfill a role in the diversified portfolio similar to the role that hedge funds would play. Exhibit 4 plots the recent return performance of a few commonly used hedge fund indices (e.g., DJCS_Hedge, HFRI_FW, and HFRX_Global), which represent composite indices of individual hedge funds and were designed to track the overall return performance of the industry; as well as a fund-ofhedge funds (FOF) index (HFRI_FOF) designed to track the overall return performance of funds of hedge funds. Exhibit 5 presents the return performance of four popular hedge fund replication index products, produced by Merrill Lynch, G oldman Sachs, JP Morgan, and Credit Suisse. Exhibit 6 presents the return performance of the overall hedge fund indices alongside the performance of these hedge fund replication products. 1 This is an excerpt of the data. The full data series is in the Spreadsheet Supplement to the case. 4 AQR’s DELTA Strategy 212-038 AQR’s approach For years, the principals at AQR had been working on understanding the underlying nature of hedge fund returns and exploring the possibility of being able to capture them in a transparent, liquid and cost effective way. Thus, they were initially intrigued by the introduction of these hedge fund replication products, but very soon came to the conclusion that an entirely different approach to delivering exposure to the systematic risk factors of the hedge fund industry was needed. Whereas AQR’s competitors focused on the ‘top-down’ products described above, AQR focused on creating a ‘bottom-up’ approach that sought to deliver significant risk-adjusted returns instead of simply replicating an index by: capturing classical, liquid hedge fund strategies that were uncorrelated with traditional markets, implementing them at low cost, and then bundling these strategies into a wellconstructed single portfolio focusing on portfolio construction, risk management and trading. Origins of AQR’s approach The idea of direct, simplified implementation of core hedge fund strategies was hinted at by the pioneering work into merger arbitrage of Mark Mitchell and Todd Pulvino. Mitchell and Pulvino were both former academics (at Harvard Business School and the Kellogg School of Management, respectively) who subsequently teamed up with AQR in 2001. A simple merger arbitrage strategy, for example, worked as follows: after the announcement by Firm A of a desire to acquire Firm B, the merger arbitrageur made a purchase of the target Firm B shares while shorting the acquirer Firm A’s shares (if the acquisition was to be made in cash, the arbitrageur merely purchased Firm B shares without shorting Firm A). Typically upon the announcement of the merger, the price of the target shares would not rise all the way to the price that would be appropriate if the merger were sure to be completed. When Mitchell and Pulvino studied the merger arbitrage industry, they found that merger arbitrage strategies did deliver substantial risk-adjusted returns. Specifically, the expected returns of putting merger arbitrage  investments into place was high, and while the risk was higher than one might naturally have expected — because mergers tended to break up exactly at times of market stress, and therefore the merger arbitrage strategy had more beta, or market exposure, than might be presumed — nevertheless they found that even accounting for this risk, the performance of a naà ¯ve merger arbitrage strategy that invested in every deal was substantial. Mitchell and Pulvino also looked at the performance of actual merger arbitrage funds. A merger arbitrage fund would be expected to add alpha by correctly identifying which mergers were more or less likely to achieve completion than the market anticipated. So, for example, if the market pricing of a deal was such that the expected return would be zero if the merger was 90% likely to be completed, the merger arbitrageur’s job was to try to figure out whether in fact the merger was substantially more than 90% likely to go through, substantially less than 90%, or about 90%, and then invest only in those deals that were substantially more than 90% likely to go through. What Mitchell and Pulvino found was that merger arbitrage funds made money, but that they did not show an ability to forecast which mergers would close over and above the market’s ability. That is, the outperformance that merger arbitrageurs were generating was no greater than the outperformance that would be generated by a simple strategy that bought every target and shorted every bidder, particularly net of fees. 5 212-038 AQR’s DELTA Strategy This opened the door to a potential strategy for the replication of merger arbitrage: simply participate in every merger arbitrage deal that met a set of basic screens (e.g., size and liquidity). The benefit to investors would be a potentially more diversified portfolio of merger deals than would be obtained from a fund manager who only selected a subset of the deals, and also potentially far lower fees, because there was no need to pay an analyst  to determine which mergers were more or less likely to succeed. With this as a template, one could easily imagine a whole roster of potential hedge fund strategies that could be captured in a systematic way (e.g., long value stocks and short growth stocks, convertible arbitrage, carry trades, trend following trades and trades exploiting other wellknown empirical asset pricing anomalies). Since the early work into merger arbitrage, AQR had spent years researching these other classical hedge fund strategies that could be captured from the bottomup. Bottom-Up versus Top-Down AQR preferred their bottom-up approach for a variety of reasons. First, they felt that many hedge fund strategies earned returns for bearing a liquidity risk premium, which you could not earn by trading solely in liquid instruments as in the hedge fund replication methods. For example, in order to capture the returns from a convertible bond that traded at a discount to fair value because of a liquidity risk premium, you needed to own the convertible bond, not simply liquid assets that were correlated with the convertible bond. Second, since top-down methods aimed to maximize correlations with recent past hedge fund performance, these approaches were necessarily backwardlooking and based on what hedge funds were doing in the past. By contrast, if you ran the actual strategies, one could respond to market opportunities immediately. Finally and perhaps most importantly, AQR felt that the hedge fund indices upon which most top-down replication strategies were based had a variety of biases (e.g., survivorship bias), had too much exposure to traditional markets (i.e., equity and credit beta) and also tended to reflect the weights of the most popular strategies. Since these popular strategies were crowded with many trades, the expected returns on these strategies going forward were potentially lower. In short, while they shared the noble goals of top-down replication products (i.e., attempting to provide liquid, transparent exposure to hedge fund strategies at a lower fee), AQR felt that the approach had fundamental flaws or, as Cliff Asness put it in a speech in October 2007 on hedge fund replication, â€Å"Not Everything That Can Be Done Should Be Done.† AQR’s DELTA Strategy In late 2007, AQR decided to focus their years of research on capturing the classical hedge fund strategies in a systematic way from the bottom up by â€Å"creating our own product that would seek to deliver these strategies in a risk-balanced and efficiently implemented way.† AQR viewed their â€Å"DELTA† product as superior to the newly-introduced replication products that were being marketed as offering ‘hedge fund beta.’ In fact, AQR staff bristled at comparisons between the existing hedge fund replication products and their DELTA product. To ensure that AQR was taking a broad approach and to avoid being insular, they formed an external advisory committee made up of some very seasoned hedge fund investors to help guide the development of the product. The DELTA name was an acronym that reflected the product’s characteristics: ‘Dynamic, Economically Intuitive, Liquid, Transparent and Alternative.’ The portfolio was designed to be uncor related with the overall stock market, and would be diversified across nine broad strategy classes: a Fixed Income Relative Value strategy, a Managed Futures strategy, a Global Macro strategy, insular = bekrompen 6 AQR’s DELTA Strategy 212-038 an Emerging Markets strategy, a Long/Short equity strategy, a Dedicated Short Bias strategy, an Equity Market Neutral strategy, a Convertible Arbitrage strategy, and an Event Driven strategy. Performance AQR decided to go ahead with the creation of the DELTA strategy in the late summer of 2008. By October 1, 2008, the portfolio was fully invested and had begun to compile a track record. At the time, the staff at AQR had worried that this might be â€Å"the worst possible time to be launching a product designed to capture classical hedge fund strategies.† Nonetheless, the DELTA  portfolio performed well in the fourth quarter of 2008 immediately after its launch, an impressive feat given the turbulence in the market. Exhibit 7 charts the monthly performance of the DELTA strategy since inception. Exhibit 8 shows the raw monthly returns of the DELTA strategy, compared to the raw monthly returns of stock market indices (S&P and NASDAQ) and broad hedge fund indices (e.g., DJCS_Hedge and HFRI_FW, which were designed to track the overall performance of the hedge fund industry). Exhibit 8 also presents the â€Å"beta† of the DELTA strategy with respect to these various market and hedge fund indices, while Exhibit 9 graphs the cumulative return performance of the DELTA strategy relative to these indices. Marketing DELTA Although DELTA was off to a great start, Kabiller felt like it was underperforming its potential. By the summer of 2011, despite its excellent performance, growth in DELTA’s AUM had been modest. After giving it a lot of thought, Kabiller identified three primary challenges AQR faced in convincing investors to allocate capital to DELTA. First, many of his institutional clients had grown very comfortable selecting a set of hedge funds and paying them both management and performance fees. Exhibit 10 presents the recent annual returns of some of the largest U.S. hedge funds, many of whom had delivered stellar returns over time. Kabiller was convinced that one of DELTA’s major assets was its ability to deliver hedge fund returns with a significantly lower fee structure. But many of his institutional clients had difficulty assessing just how large an advantage this provided DELTA. For instance, if a client selected the two percent management fee with no performance fee struct ure, how much higher could they expect their after-fee returns to be? Given that performance fees were typically only paid on returns in excess of a cash hurdle, was a twenty percent performance fee really that costly to fund investors? Related considerations applied to investors that invested primarily through Funds of Hedge Funds. These investment vehicles typically added a layer of fees on top of the after-fee performance of their hedge fund investments – typically a one percent management fee and a ten percent performance fee. Due to DELTA’s multi-strategy investment approach, its after-fee performance should perhaps be benchmarked against those of fund-of-funds alternatives. Conveying to such investors the fee advantage of DELTA in simple terms – for instance, how much better their competitors’ pre-fee returns needed to be than those of DELTA to offset the fee differential – would go a long way in convincing them that DELTA was the superior approach. A second challenge in marketing DELTA was the emergence of the so-called hedge fund replication strategies. These strategies were almost the polar opposite of the fund-of-funds – they had modest fees and, because they replicated hedge fund returns using highly liquid indices, they faced little in the way of liquidity risk. Institutional investors interested in low-fee exposure to hedge fund returns found these products attractive, and Kabiller found it challenging to convey the advantages of the DELTA approach. His inclination was to focus on two key limitations of hedge fund replication. First, he felt they relied heavily on the historical relationship between hedge fund returns and major stock and bond market indices. To the extent that the relationship was not stable, 7 212-038 AQR’s DELTA Strategy or to the extent that a large fraction of hedge fund movements could not be captured by an appropriate combination of these indices, the replication approach would be limited in its ability to truly deliver in real time the actual returns being earned by the average hedge fund investor. Second, even if the strategy could replicate a large fraction of the monthly fluctuations in performance of the average hedge fund, Kabiller felt it was likely that a â€Å"top-down† approach would be limited in replicating the actual edge, or â€Å"alpha,† of the average hedge fund. Even if much of the risks to which hedge funds were exposed could be found in broad stock and bond market indices, it was unlikely that any of the informational or liquidity edges they possessed would appear in the returns of these indices. A final challenge Kabiller faced in the marketing of DELTA was its track record. Although it had outpaced the broad HFRI index since its inception in the fall of 2008, th e track record was still a fairly limited one. Moreover, since the central appeal of the product was its ability to match average hedge fund returns  with modest fees, the outperformance ironically posed something of a challenge for DELTA. Kabiller felt it would be critical to understand its source before determining whether it was an aberration or whether they possessed a sustainable edge relative to the index of hedge funds. As Kabiller looked out beyond his infinity pool and into the calm waters of the Long Island Sound, he worried that without a proper grasp of these issues, many rough sales meetings lay ahead for him and his DELTA team. 8 AQR’s DELTA Strategy 212-038 Exhibit 1 Cumulative Return Performance of Hedge Fund Indices versus Stock Market Indices, since 1996. Cumulative Return Performance of Hedge Fund Indices Versus Stock Market Indices 500 450 400 350 300 250 200 150 100 50 0 199601 199609 199705 199801 199809 199905 200001 200009 200105 200201 200209 200305 200401 200409 200505 200601 200609 200705 200801 200809 200905 201001 201009 201105 NASDAQ S&P_Index DJCS_Hedge HFRI_FW Source: Bloomberg. 9 212-038 AQR’s DELTA Strategy Exhibit 2 Total Number of Hedge Funds and Total AUM (Assets Under Management) for the Hedge Fund Industry, since 1997. Growth in Hedge Fund Industry (1997-2010) 12,000 $2,500.00 10,000 Number of Hedge Funds 8,000 $1,500.00 6,000 $1,000.00 4,000 $500.00 Hedge Fund AUM (in Billions $) $2,000.00 Number of Hedge Funds Hedge Fund AUM 2,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 $- Source: Created by casewriters using data from Hedge Fund Research, www.hedgefundresearch.com, accessed August 2011. 10 212-038 -11- Exhibit 3 Excerpt of Monthly Returns on Indices Commonly Used for Hedge Fund Replication (1996-2011). The full data series is contained in the Spreadsheet Supplement to the case MSCI EM 7.6% -0.6% 1.1% 5.2% 0.1% 0.9% -6.2% 2.6% 1.4% -1.4% 1.7% 1.0% †¦ -2.1% -1.4% 4.3% 0.8% -1.6% -1.9% -0.9% -7.3% -7.4% 9.1% -3.8% 0.0% 7.4% 3.9% 7.0% 6.2% -2.5% 0.5% 15.0% -0.5% 0.5% 10.9% -0.2% 1.0% 4.5% -8.7% -4.3% -8.8% -11.4% -5.4% -7.0% -1.3% -1.2% -3.5% -2.0% -2.5% -3.7% -1.1% -1.7% -2.0% 0.4% 0.1% 0.2% 0.4% -0.1% 0.0% 0.0% 0.0% 0.1% -2.8% 2.0% 2.4% 2.6% 0.0% 3.0% -0.1% 0.5% 1.6% 2.4% -0.3% 5.4% 2.4% 3.4% 0.2% -0.1% -0.4% 0.0% 0.0% 1.6% 2.7% -0.7% 3.3% 5.7% 2.8% -2.0% 1.3% 2.0% 0.8% 4.0% -0.7% †¦ 4.0% 2.4% †¦ 7.6% -2.0% †¦ 0.8% 0.0% †¦ 2.8% -2.1% †¦ 4.6% -1.2% 3.7% -1.7% 5.6% 2.8% 0.9% 1.2% 2.2% 2.9% 0.9% 4.1% 0.4% 0.0% †¦ -0.7% -0.2% 1.1% 1.7% -0.9% -0.8% 0.6% -1.2% 1.4% 0.0% 1.0% 0.3% 0.0% 1.0% -4.9% 0.9% -4.2% -8.8% 5.7% 0.4% -4.4% 2.1% 0.8% 0.4% 0.4% 1.5% 0.0% -0.5% -0.3% -1.0% -1.4% 3.5% -1.2% 5.3% 3.9% 1.5% 2.6% 0.0% 0.2% -1.7% -0.6% 4.5% -1.4% -1.0% 2.8% 3.0% 1.8% 0.9% 1.0% -0.5% -0.2% -3.6% -1.1% -3.7% -0.3% 3.7% -0.2% 3.4% 0.9% 0.4% 5.1% MSCI EAFE RUSSELL 2000 S&P 500 US TREAS 2YR US TREAS 10YR CURRENCY HFRI HFRI FOF HFRI FW 1/31/1996 1.1% 2.7% 2.9% 2/29/1996 3/29/1996 2.8% 1.9% -0.6% 1.0% 1.2% 1.5% 4/30/1996 5/31/1996 5.3% 3.7% 3.1% 1.5% 4.0% 3.1% 6/28/1996 7/31/1996 8/30/1996 -0.7% -2.9% 2.6% 0.4% -1.9% 1.5% 0.2% -2.1% 2.3% 9/30/1996 10/31/1996 2.2% 1.6% 1.2% 1.6% 2.1% 1.0% 11/29/1996 12/31/1996 †¦ 1.7% 0.8% 2.3% 0.7% †¦ 2.1% 1.3% †¦ 1/31/2011 2/28/2011 0.4% 1.3% 0.1% 0.8% 0.4% 1.2% 3/31/2011 4/29/2011 0.5% 1.3% -0.1% 1.2% 0.1% 1.5% 5/31/2011 6/30/2011 7/29/2011 -1.3% -1.3% -0.3% -1.1% -1.3% 0.4% -1.2% -1.2% 0.2% 8/31/2011 9/30/2011 -4.9% -6.0% -2.6% -2.8% -3.2% -3.9% 10/31/2011 11/30/2011 12/30/2011 4.9% -2.0% -0.9% 1.1% -1.0% -0.4% 2.7% -1.3% -0.4% 1/31/2012 3.8% 1.9% 2.6% Source: Thomson Reuters Datastream. 212-038 AQR’s DELTA Strategy Exhibit 4 Cumulative Return Performance of Overall Hedge Fund Indices, since June 2007. Recent Performance of Hedge Fund Indices 120 110 100 DJCS_Hedge 90 80 70 60 200706 200708 200710 200712 200802 200804 200806 200808 200810 200812 200902 200904 200906 200908 200910 200912 201002 201004 201006 201008 201010 201012 201102 201104 201106 HFRI_FW HFRX_Global HFRI_FOF Source: Bloomberg. 12 AQR’s DELTA Strategy 212-038 Exhibit 5 Cumulative Return Performance of Hedge Fund Replication Indices, since June 2007. Recent Performance of Hedge Fund Replication Products 130 120 110 100 90 80 70 60 200706 200708 200710 200712 200802 200804 200806 200808 200810 200812 200902 200904 200906 200908 200910 200912 201002 201004 201006 201008 201010 201012 201102 201104 201106 ML GS JPM CS Source: Bloomberg. 13 212-038 AQR’s DELTA Strategy Exhibit 6 Comparison of Cumulative Return Performance of Overall Hedge Fund Indices versus Hedge Fund Replication Indices, since June 2007. Comparison of Recent Performance of Hedge Fund Indices Versus Hedge Fund Replication Products 130 120 110 100 90 80 70 60 200706 200708 200710 200712 200802 200804 200806 200808 200810 200812 200902 200904 200906 200908 200910 200912 201002 201004 201006 201008 201010 201012 201102 201104 201106 DJCS_Hedge HFRI_FW HFRX_Global HFRI_FOF ML GS JPM CS Source: Bloomberg. 14 AQR’s DELTA Strategy 212-038 Exhibit 7 Monthly Return Performance of AQR DELTA strategy, Since Inception. AQR DELTA Return Performance 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% -3.00% -4.00% Source: Company documents. 15 212-038 AQR’s DELTA Strategy Exhibit 8 Monthly Return Performance (and Beta) of AQR DELTA strategy compared to Market Indices (S&P, NASDAQ) and Hedge Fund Indices (DJCS_Hedge, HFRI_FW), since October 2008. Date 200810 200811 200812 200901 200902 200903 200904 200905 200906 200907 200908 200909 200910 200911 200912 201001 201002 201003 201004 201005 201006 201007 201008 201009 201010 201011 201012 201101 201102 201103 201104 201105 Average DELTA 1.22% 1.72% 4.05% 2.79% -0.10% 2.32% 3.09% -0.35% 1.78% 1.93% 4.48% 2.70% -0.31% 0.96% 0.55% -0.66% -0.27% 2.23% 2.18% -3.37% 1.39% 1.62% 2.02% 3.33% 2.47% 1.03% 1.93% -0.41% -0.45% 0.92% 2.31% -0.84% 1.32% NASDAQ -17.73% -10.77% 2.70% -6.38% -6.68% 10.94% 12.35% 3.32% 3.42% 7.82% 1.54% 5.64% -3.64% 4.86% 5.81% -5.37% 4.23% 7.14% 2.64% -8.29% -6.55% 6.90% -6.24% 12.04% 5.86% -0.37% 6.19% 1.78% 3.04% -0.04% 3.32% -1.33% 1.19% 0.09 0.25 0.28 S&P_Index -16.94% -7.48% 0.78% -8.57% -10.99% 8.54% 9.39% 5.31% 0.02% 7.41% 3.36% 3.57% -1.98% 5.74% 1.78% -3.70% 2.85% 5.88% 1.48% -8.20% -5.39% 6.88% -4.74% 8.76% 3.69% -0.23% 6.53% 2.26% 3.20% -0.10% 2.85% -1.35% 0.64% 0.09 0.28 0.32 DJCS_Hedge -6.30% -4.15% -0.03% 1.09% -0.88% 0.65% 1.68% 4.06% 0.43% 2.54% 1.53% 3.04% 0.13% 2.11% 0.88% 0.17% 0.68% 2.22% 1.24% -2.76% -0.84% 1.59% 0.23% 3.43% 1.92% -0.18% 2.90% 0.69% 1.38% 0.12% 1.80% -0.96% 0.64% 0.25 HFRI_FW -6.84% -2.67% 0.15% -0.09% -1.21% 1.66% 3.60% 5.15% 0.25% 2.50% 1.30% 2.79% -0.20% 1.52% 1.28% -0.76% 0.66% 2.49% 1.19% -2.89% -0.95% 1.61% -0.13% 3.48% 2.14% 0.19% 2.95% 0.41% 1.23% 0.06% 1.45% -1.18% 0.66% 0.25 DELTA’s Beta with: DJCS_Hedge’s Beta with: HFRI_FW’s Beta with: Source: Company documents. 16 AQR’s DELTA Strategy 212-038 Exhibit 9 Cumulative Return Performance of AQR DELTA Strategy versus Market Indices (S&P and NASDAQ) and Hedge Fund Indices (DJCS_Hedge and HFRI_FW), since October 2008 Cumulative Return Performance of DELTA versus Market and Hedge Fund Indices 180 160 140 120 100 80 60 40 20 0 DELTA NASDAQ S&P_Index DJCS_Hedge HFRI_FW Source: Bloomberg and company documents. 17 212-038 -18- Exhibit 10 Annual Returns of Largest Hedge Funds (%) Fund Name Winton Futures USD Cls B Millennium International Ltd Transtrend DTP – Enhanced Risk (USD) The Genesis Emerging Mkts Invt Com A Aspect Diversified Programme Aurora Offshore Fund Ltd. Permal Macro Holdings Ltd USD A Canyon Value Realization Cayman Ltd A Permal Fixed Income Holdings NV USD A Absolute Alpha Fund PCC Diversified Caxton Global Investments Ltd GAM U.S. Institutional Trading K4D-10V Portfolio K4D-15V Portfolio Orbis Optimal (US$) Fund GAM Trading II USD Open Double Black Diamond Ltd (Carlson) GoldenTree High Yield Master Fund Ltd Bay Resource Partners Offshore Fund Ltd GAM U.S. Institutional Diversity Firm Name Winton Capital Management Millennium Intl. Management Transtrend BV Genesis Investment Management Aspect Capital Aurora Investment Management Permal Asset Management Canyon Capital Advisors Permal Asset Management Financial Risk Management Caxton Associates GAM Sterling Management Graham Capital Management Graham Capital Management Orbis Investment Management GAM Sterling Management Carlson Capital Goldentree Asset Management GMT Capital Corp GAM Sterling Management Size ($Bil) 9.89 8.84 8.38 6.70 5.71 5.56 5.35 5.21 4.51 4.47 4.40 3.57 3.54 3.54 3.43 3.09 2.98 2.65 2.45 2.43 2001 7.11 15.26 26.36 4.62 15.79 9.82 14.66 12.69 11.50 9.33 31.41 16.34 6.45 39.31 29.01 14.78 11.94 18.30 29.32 9.56 2002 18.34 9.61 26.26 -1.77 19.19 1.31 8.03 5.21 10.47 6.36 26.44 10.69 18.76 43.71 12.15 10.55 2.12 6.24 0.03 4.95 2003 27.75 10.89 8.48 61.98 20.59 13.58 12.56 21.87 17.59 8.07 8.09 14.74 8.46 21.60 10.84 14.49 7.62 31.42 23.24 14.60 2004 22.63 14.68 12.82 31.53 -7.72 8.15 4.86 13.56 9.37 4.06 9.97 3.55 5.56 -0.43 2.25 3.84 4.70 9.89 27.97 6.14 2005 9.73 11.31 5.99 37.86 12.01 9.47 10.65 8.35 7.69 7.00 8.03 4.98 -7.52 -16.97 8.60 4.80 5.08 13.35 30.95 10.48 2006 17.83 16.43 12.04 30.22 12.84 10.95 9.48 14.08 10.48 8.94 13.17 8.68 5.02 6.64 4.95 7.44 21.12 13.21 21.65 16.74 2007 17.97 10.99 22.38 31.68 8.18 13.14 8.90 7.52 8.42 16.33 1.06 9.48 11.62 16.57 6.98 7.93 15.96 4.60 19.84 7.76 2008 20.99 -3.04 29.38 -49.30 25.42 -21.69 -5.16 -28.36 -18.40 -23.02 12.96 7.57 21.82 35.67 -2.49 5.78 -12.40 -38.60 -20.88 -13.96 2009 -4.63 16.28 -11.27 90.44 -11.24 21.26 9.83 55.20 27.32 10.51 5.83 8.32 1.41 3.11 9.92 6.55 28.34 69.94 56.60 6.78 2010 14.46 13.22 14.89 25.06 15.36 7.31 6.38 13.46 10.40 5.36 11.42 7.80 2.46 4.58 -3.93 5.97 9.30 23.61 15.90 -1.14 2011 6.29 8.39 -8.65 -15.29 4.51 -6.01 -3.27 -4.66 -5.28 -2.06 -2.40 -2.32 -4.11 -2.67 -4.19 -2.79 Source: Morningstar Hedge Fund Database, accessed January 2012.