Exploring the Visual Language of Display

Table of Contents

  1. Introduction.. 3
  2. Theory, History and Method. 4

2.1.      Theories. 5

2.1.1.      The Cultural Capital Theory. 5

2.1.2.      The Habitus Theory. 6

2.1.3.      The Cultural Reproduction Theory. 6

2.2.      History. 6

2.3.      Methodology. 7

  1. Discussion and Illustrations (1,500 words) 7
  2. Bibliography. 8

 

 

 

 

 

 

 

 

 

1.    Introduction

Today, having an understanding of how people interact with space especially in complex social ones for instance hotels is very critical. This is mainly because, this understanding is the one to be employed when designing the interior of these spaces. As such if one has a superficial understanding, the end results are spaces with very minimal human interaction resulting in little or no satisfaction. However, when the understanding is in-depth, the end results are spaces that are distinct and also elicit a good and desirable mood as well as taste among its users. The more people enjoy such spaces the more they end up frequenting them and also giving referrals. This in return is good for business for instance in hotels since there will be a high number of visitations. One of the ways through which this can be achieved in hotels, is the display of artistic collections.

This report looks at a 30-room boutique hotel located off the Trafalgar Square in London which was bought by a high-end collector who is a James Bond fanatic. The hotel was then redesign with the 007 theme with features such as an intimate 50-seater cinema and casino, an on-site tailor, a gadget shop as well as an Aston Martin. By the fact that the owner of the hotel is a high-end collector, it means that the hotel should contain a lot of artistic display with the main ones being those related to the James Bond Character or simply 007-themed. Therefore, this report is going to communicate the display of collection within the hotel. Additionally, it is also going to assess and communicate how the rooms of the hotel have been designed. In addition, the report will assess and communicate the design of the hotel’s public spaces.

James Bond is a film series that has been produced for around the last fifty years by EON Productions. The series mainly revolves around a fictional agent in the British Secret Service who is the main character, therefore, this makes it a spy series in general. Important to note is that the design features of spaces in the series have over the years been adopted by many designers in designing homes as well as other spaces such as hotels. This is the same concept that is going to be put into practice in this assessment which involves the design of a hotel building that is 007-themed. 007 is a franchise of the James Bond series and as such is directly related to it. Hence a 007 theme is the same as a James Bond theme.

The James Bond theme has been chosen by such establishments because there are millions of fanatics of the film worldwide. Therefore, by having a facility for instance a hotel with such a theme, it will target these individuals. This is because such people will go to such hotels to have a taste of what they have been seeing in the James Bond films. This brings about a certain level of self-actualisation and relaxation that cannot be achieved elsewhere.

2.    Theory, History and Method

Design as a concept mainly revolves around distinction and taste because in the case of a hotel, for an individual to be interested in it and even come back again, they will have to like the taste. Distinction mainly looks at the aspect of uniqueness for instance in terms of design concepts applied or even service among others. For instance, in the hotel industry, these have to be achieved by the proprietor through employing unique display collections. However, taste, on the other hand, is more of an individual function has different individuals have different tastes. According to McDermott (1994), taste involves critical human judgement with regards to objects as well as culture. Therefore, the scholar mentions that taste evokes a well though-of appreciation towards something that is pleasing to the eye. All these simply mean that taste with regards to human objects is based on an individual’s existing knowledge for them to be well informed about whether or not a certain object has good taste. Also, it is based on connoisseurship which mainly explains the knowledge that one should have with regards to fine arts, cuisines or even be an expert in making judgements regarding to matters involving taste. Besides, it is also based on critical appreciation. Critical appreciation simply means the intelligent understanding of certain objects so that they have an intelligent basis on whether they are of goof taste or not.  This brings forth the idea of theories surrounding the aspect of taste.

2.1.        Theories

2.1.1.   The Cultural Capital Theory

Some of the proponents of this theory include famous sociologists for instance Lèvi-Strauss who later influenced sociologists such as Barthes and Bourdieu. According to this theory, people start early in life when they are neither savage or tasteful. However, this change when an individual grows up and has several cultural interactions because the initial perceptions become written over by the cultural systems especially those of communication that an individual interacts with. This is mainly the communication as well as culture embedded within the family structure.

Therefore, this is the reason why one will find that people from affluent backgrounds have a very distinct taste mainly opting for high-end and classy things as oppose from their counterparts from less-affluent backgrounds. This is mainly because this aspect of culture is passed from one generation to another and as such it is a factor that is always constant among similar people. On the other hand, culture can also mean the people that one interacts with, this means that an individual will tend to pick their tastes as well as mannerisms. Therefore, in terms of the case study hotel, it can be argued that fact that tastes as well as mannerisms are hereditary and can be predicted, charted and even traced getting traffic to the hotel will be made possible.

2.1.2.   The Habitus Theory

According to Bourdieu, this theory revolves around the insensible take-up of certain environmental behaviors by an individual then employing them in several matters for life. Therefore, the main point of inference in this theory is the environmental aspect whereby something which feels natural is good and also honest. Regarding the 007-themed hotel, this theory can be related to the fact that James Bond fanatics will be more than willing to pay to have a more natural feel of the James Bond movie by watching it from such a hotel and even be among spaces with man-made materials of the movie. Therefore, to them, the hotel is of good taste because of the simulation of the movie as well as stimulation. Furthermore, the 007-theme has a lot of inherent value features which individuals find them as a source for good taste. Therefore, having the hotel in such a theme makes the proprietor to be sure of the fact that James Bond fanatics will term it as one with good taste hence translate to good business for him.

2.1.3.   The Cultural Reproduction Theory

 

 

2.2.        History

 

2.3.        Methodology

For this assessment it is important to note that the methodology that will be followed in proposing or communicating how the hotel owner’s collection will be placed will mainly be adopted from reviewing several films from the film as well as looking at other hotels that have already applied the theme worldwide. This is the secondary research method whereby one looks at what has already done by others then based on that comes up with results to be applied elsewhere. Examples films from the James Bond series which will be reviewed to propose design solutions for this assessment include include the From Russia With Love (1963), Goldfinger (1964), Thunderball (1965), Die Another Day (2002) and most recently Skyfall (2012) among others. In the case of the 007-themed hotels that already exist, some of those reviewed include the Seven Hotel in Paris, the Isle of Erika Hotel in Scotland as well as the Sofitel London St. James in London among others.

3.    Discussion and Illustrations (1,500 words)

 

 

 

 

 

 

 

4.    Bibliography

McDermott, C. (1994), Essential Design, London: Bloomsbury, p. 195.

Advertisements

Importance of Discipline among Military Members and Civilians

Introduction

Military discipline is the training that enhances self-control, behavior, and competence and as the outcome of such nature of training means adherence to the regulations formulated for the advantage of the team. The military discipline is the code of conduct that governs the operations of the military soldiers in the times of operations and at work. The military discipline is unique for every nation and are established for the benefits of the military members and the civilians. The discipline is also important among the civilians as it promotes the efficiency of their activities. The civilians discipline is also efficient for the operation of the military members as this defines the boundaries between them and the military members. In as much as the discipline is significant for the military members, it also generates a lot of significance to the Civilians as explicitly discussed in the successive paragraphs.

Importance of discipline among military members and civilians

The importance of the discipline among the military members and the civilians include;

  1. Discipline Enhances Competency

Discipline among the military members, promotes their competency and efficiency of any planned or unplanned military operations. For instance, the military members are required to wear the uniform all the time when in military operations, to distinguish the members of a given group of the enemies or the opponents. In addition, the uniformity of the troop during the period of war promotes the efficiency of the troop as it avoids the cases of mistaken identity. It is a general regulation among the military members to stay in the uniform in the process of the war to foster teamwork among the members with the aim of defeating the enemies. Therefore, being in uniform is self-discipline among the military members to help them identify each other easily. Moreover, the discipline among the military soldiers enables them to adhere to the rules that govern the operations of the military processes hence promoting their efficiency during the times of war. The discipline among the troops compels them to participate in war without resisting the commands or orders from the seniors.

In addition, the discipline among the military members and the civilian promote competency in the management of the county’s security and also in the protection of the civilians. For instance, by the virtue of the mandate of the military members, the civilians are required to provide maximum discipline to the soldiers in the process of any form of military actions to improve the efficiency of the process. For example, the civilians are not allowed to put on the military uniform to avoid any form of confusions among the civilians and the soldiers. On the other hand, soldiers are also not allowed to be without uniform in the process of military operations as the civilians and the fellow soldiers can confuse him or her with the imposters.

Similarly, discipline among the military members and the civilians also allow for the efficient protection of the Civilians’ businesses. It is the soul mandate of the disciplined soldier to defend the country and the property within it, therefore, the civilians benefit from the nature of protection provided by the military members. Moreover, the discipline that exists between the military members and the civilians makes the civilians to provide information on any form of insecurity that hinders the smooth running of the daily business, especially, in the country’s borders, or any form of terrorist attacks.

 

 

  1. Discipline among military members and civilians promotes National integration and peace

The discipline that exists among the military members and the civilians promotes the national integration and peace within the borders of the country. The discipline enables both the military members and the civilians to work in harmony within any form of settings. For instance, in the United States, the Army Regulations provide for the appointment of the secretary of the Army, who by the statute must be a civilian, selected by the President and approved by the United States Senate, to head the department of the Army within the United States of Defense. The discipline that is required for the military members enhances the peaceful coexistence between them and the head of the department of the Army, who is always selected among the civilians.

Additionally, the military members are always instructed by their commanders to embrace discipline in their dealings with the civilians. For instance, according to the United States War Department (2016), in the United States, when there is an accusation among the senior officials of the Army, the investigation involving such senior official is processed in accordance to the Army Regulation (AR) 20-1. Therefore, this kind of provision promotes peaceful coexistence among the military members and the civilians to avoid such allegations of misconduct of the Army members.

Moreover, the military members are provided with the limits of operation, of which they must ensure they adhere to, in order to ensure that they do not interfere with the innocent civilians. However, the civilians also are expected to reciprocate the discipline provided to them by the military members to ensure that there exists harmony among them and the military members. The discipline instills into the civilians and the members of the military the mandate to act responsibly towards one another. The military members are not allowed to act in a way that is provocative to the civilians, and on the other hand, the civilians’ are not to act in way that can provoke members of the military. This will avoid the existence of animosity among the two groups, that is, the civilians and the military members.

  1. Military Discipline Enhances protection of the civilians within or outside the borders

The discipline within the military members also enables them to respond to the matters of insecurity that is affecting the civilians within or outside the borders. However, the civilians within or outside the borders are also expected to cooperate to the operations of the military to ensure efficiency of the security operations. For instance, the United States, Army Regulation (AR) 12-7, allows for the policies and assigns duties for the United States Army Security Assistance Teams (SAT) to the overseas nations and the worldwide bodies in the requirements of the Foreign Aid Act as repealed, and the Arms Export Control Act as repealed (United States War Department, 2016).

The efficient operation of this nature of the security mission requires maximum discipline of the military members to respond to the deployment instructions. On the other hand, it also calls for the discipline of the civilians in the foreign country to cooperate with the foreign soldiers in the peace making mission. Therefore, the civilians should not accord discipline of the home military members, only, but to the foreign military members also to facilitate smooth execution of the peace mission. For example, when the United States deployed their military members for the peace making deal in Syria, the discipline among the military members compelled them to respond without complain as it was part of their occupation. On the other hand, the civilians of the Syria were expected to accord discipline of the United States Soldiers in the peace mission (Vandevoorde, 2010).

Moreover, the Civilians are required to remain indoors at times of state of emergency to ensure that the military members do not interfere with them during the moments of war. Furthermore, the military members should ensure that the civilians are protected as part of their mandate, during any form of disaster. It is the responsibility of the military members to respond to the disaster, and helps in rescuing the civilians affected by the disaster. The discipline among the military members enables them to rescue the properties and the civilians without any form of mischief or misconduct. In this case, the discipline is beneficial to both the military members and the civilians as it helps them to preserve their jobs and at the same time rescue the property safely. Therefore, the military members act with discipline for the benefits of the civilians. For instance, in the case of fire outbreak, the military officers are required to act with discipline in the process of rescuing the situation to avoid the loss of property of the civilians. Thus, the civilians are also expected to remain disciplined in the remittance of the tax, to ensure that the operations of the military officers are not paralyzed due to lack of funds.

  1. Discipline enhances recognition among the civilians and the military members

The discipline within the military settings enables the recognition of the titles among the military members. The junior members of the military members are prompted with the self-discipline to show respect to the senior officers, in the form of addressing them with their titles or positions. As well as, the civilians are also prompted by the discipline they have for the military members to address them with their titles as a sense of honor and recognition for the occupation of the military members. In addition, the discipline is the act which also enables the civilians to acknowledge the military members even at the moments they are retired from the military jobs. Furthermore, the military members are not allowed to leak any information regarding the operations of the military when interacting with the civilians, to ensure the persistence of the discipline among them.

Moreover, the civilians recognize the position of the military members and accept the discipline that is associated with the military job. For instance, the military officials’ family member acknowledges the discipline that is associated with the job and therefore, their spouses and the children accept the situation of missing their member who is serving in the military. It is the discipline that makes the military members to stay away from their parents due to the nature of the job. In addition, the family members of the military members, who are part of the civilian, are also restricted with the sense of the discipline for the military policies to persevere the situation of the member serving in the military (Vandevoorde, 2010). Therefore, the sense of discipline promotes recognition and acceptance of the different situations of the military officers and the civilians.

Furthermore, the discipline among the military members to stay in the Uniforms enables the Civilians to recognize them as the government officials; therefore, this avoids the confusion among the civilians and the military members. And, the avoidance of the civilians to put on the military uniforms is a show of discipline and recognition of their positions in the society. In addition, this is also a form of according the discipline to the military members by the civilians as they recognize that the uniform is only meant for those in the military occupations.

 

  1. Discipline promotes integrity among the civilians and the military members

It is the discipline which enables the soldiers to uphold integrity in the process of any kind of military operations. Moreover, the integrity of the civilians is enhanced through the discipline they accord to the military members. In addition, the military members are in the possession of the dangerous weapons, and they are not allowed to use them to injure the innocent civilians. This enables the civilians to benefit from the discipline that demands that the military members are not to use the weapons to interfere with the innocent civilians.

As well as, discipline also promotes the integrity of the civilians, as ensure that they provide the accurate information to the military officers in the process of any nature of the investigation. Therefore, the integrity among the military members and the civilians is enhanced through the sense of discipline.

Conclusion

In conclusion, the discipline among the military members and the civilians is important in the following dimensions. The importance of the discipline among the military members and the civilians include; improvement of the competency, promotion of the integrity, improvement of protections of the civilians, promotion of the national integration and improvement of recognition among the civilians and military members. Therefore, the sense of discipline is of significant among the civilians and the military members within the nation for efficiency of the security and other operations.

 

References

United States War Department (2016). United States Army transport service regulations, 1914 (classic reprint). s.l.: Forgotten books.

Vandevoorde, S. (2010). Separated by duty, united in love: A guide to long-distance relationships for military couples. New York: Citadel Press.

Importance of Professionalism in the Military and how One’s Actions Affects Others

Introduction

Professionalism refers to the qualities, aims, and conduct that characterizes a certain profession. Precisely, professionalism enables the military to be effective in its undertakings. Beer (2018) notes that professionalism entails excellent literacy and practical skills connected to the military, high ethical standards, reasonable work motivation, and morale as well good relationship with colleagues. In recent years, the focus on military professionalism has increased after various transgressions took place. For instance, recent occurrences, such as the Abu Ghraib abuses in Iraq, the desecration of enemy corpses in Afghanistan, cases of cheating in proficiency tests, increased corruption in the military, and sexual misdemeanor have dominated debates about the need for professionalism in the military. Notably, the main attributes of a soldier who behaves professionally include integrity, honesty, competency, accountability and self -regulation. Soldiers have to demonstrate the five values of the US military that include trust, expertise, honorable service, esprit de corps, and stewardship. Professionalism is important in many jobs including the military because high levels of respect, commitment and discipline are required.

Importance of Professionalism in the Military and how One’s Actions Affects Others

A soldier performs numerous professional responsibilities. Hence, professionalism enables them to act ethically even when under pressure to perform many roles. Soldiers maintaining high levels of professionalism will treat colleagues and civilians with respect no matter the situation or challenges associated with their role. As such, they demonstrate high levels of emotional intelligence through putting into consideration the needs and emotions of others. Professional soldiers always sense and understand the emotional needs of civilians, they, therefore, observe the situation and listen keenly. Further, professional soldiers do not allow a bad day to affect how they interact and relate to civilians and colleagues. Treating other people with respect earns the military professions a good reputation. The military code of ethics details the values and conducts that are expected of military personnel. Further, being part of the military requires strict discipline and obedience. The members have to identify with their professional and moral responsibilities through mastering the technical expertise of warfare, enhanced relationship between themselves and the public, and awareness of their role in furtherance of goals and objectives. Adherence to professional standards leads to proper functioning of the military leading to victory in various missions.

Military professionalism enables a soldier to build trust with colleagues and leaders. Trust is fundamental to any relationship and allows people to take charge of situations (Robinson, 2017). Moreover, a renewed focus on military professionalism helps to reinforce traditional morals and values of the larger society (Nix, 2012). Professional soldiers exhibit traits such as integrity and honesty. They are trusted by their colleagues and other people because they deliver what they promised or act as expected. Professionalism enables members of the military to stick to their values even when situations are difficult like when in a war.

Equally, Professionalism motivates soldiers to complete various of tasks despite the challenges. The reason behind the argument is that, professionals do not give excuses but concentrate on finding solutions. Professionals are reliable, and they deliver their promises. Members of the military should be committed to the unit, the service, their country and ultimately on the mission and to each other. In many instances, military work is undertaken in hazardous conditions and for long hours. Therefore, commitment enables members to tolerate hardships and move on despite the situation. Additionally, professionalism enables soldiers to be humble. Thus, they respect and relate well with colleagues, request for help when necessary and have the willingness to learn from other soldiers.

According to McQuail (2003), accountability is defined as the condition of being responsible. Accountability has various merits as it helps a person perform better, keeps a person rounded in reality and lastly helps in learning from the failures and success of others. A professional person does not cross boundaries, is reliable, adheres to the correct code of ethics, and are accountable. Soldiers or military personnel interact with different people on a regular basis. Thereby, professionalism helps the soldiers own up to their mistakes, take responsibility and fix them instead of blaming their colleagues.

Professionalism is important as it enables members of the military to act ethically as they will be accountable for their actions, words, and thoughts. Personal accountability is closely linked to integrity and honesty, and it’s an important element of professionalism. Therefore, professionalism aids in managing the emotions that are developed through autonomy. It instills a sense of independence and discretionary judgment, consequently preparing the soldiers morally and psychologically to tackle the demands of their profession. Soldiers should be honest and always stand for the truth (Evetts, 2013). In this way, they create relationships that are devoid of confusion, misinterpretation, and inaccurate conclusions. In the military, deception motivates ill will and erodes the concept of openness. Professionalism enables soldiers to identify clear lines of actions, authority, and responsibility, and eliminate confusion in the processes of decision making. Despite the clear lines of activities, in cases where immediate superiors violate the tenets of professionalism and are deemed to take part in unbecoming behavior, their juniors are expected to take action and report them to the relevant authorities (Horowitz & Stam, 2014).

Carnes (2015) indicates that military professionalism promotes a good relationship between the military and civilians, this is known as objective control. Good relations are developed because the soldiers treat the civilians with respect and are sensitive to their needs. Professionals soldiers are determined to help the civilians without engaging in unethical acts of rape, abuse, violence, and intimidation of the civilians. Respecting the civilians makes them cooperate with the military through providing important information about criminals, hence, simplifying the work of soldiers. Professionalism enables soldiers to manage conflict of interest (COI) effectively. COI arises between a soldier’s role and personal interests, and it may be caused by personal relationships and special interests. Military standards of ethics require soldiers to disclose any personal interests that may affect how they perform their roles now and in future.

Conflicts are bound to arise at all time especially when individuals interact on a daily basis. Soldiers come from different walks of life, regions and religious affiliations. The differences can lead to the conflicts caused by the clash of ideologies. The application of professional attitude or behaviors thus helps in minimizing the occurrence of conflict in the workplace or barracks. Soldiers have different opinions on the day to day matters. Being professional thus, helps in the understanding and respecting other people’s opinions and act as a guiding principle in helping avoid conflicts. Additionally, professionalism helps argue out ideas in a civilized manner thus minimizing the occurrence of heated arguments that eventually lead to initiating the appropriate conflict resolution measures to resolve the disagreement.

Also, professionalism help soldiers to be objective when making important decisions (Horowitz & Stam, 2014). In most cases, decision making is done in situations of uncertainty. Different challenges are encountered, and the soldiers are expected to overcome them. Therefore, they need to balance values, such as compassion, courtesy, and kindness. As such, treatment of their adversaries and human life becomes an integral part of how they define themselves and their values. To soldiers in the US military, professionalism acts as a benchmark for success and failure. In respect of the institution, they have to abide by the highest standards. In the past, soldiers used the motivation of war to show and demonstrates acts of professionalism, such as courage, talent, drive, and loyalty. However, these are essential aspects that should be maintained even in a peaceful environment.

Professional standards of the military advocate for cooperation and unity while on a mission to achieve victory. Professionalism in the military is important as it requires soldiers to have the skills that will enable them to complete the assigned roles. Experience and skills are the foundations of professional competence. For example, Lack of skills or knowledge may lead to the death of a bleeding colleague. For military goals to be realized, professionalism is a critical element as it sets the jurisdiction of the profession as “the management of violence” (Allen, 2011). Specifically, professionalism sets the stage for the development of strategy and tact, where soldiers can take full responsibility and ownership of their actions. In recent years, there has been an ascendency towards minimizing civilian interference in military operations. However, this can only be realized when there is a clear distinction of roles. Therefore, soldiers should be pre-occupied with finding what is best for their cause, to drive their mission and vision. Further, professionalism as a virtue motivates individual soldiers to be part of the solution by setting leadership and ethical examples to be emulated.

Snider & Toner (2009) maintains that professionalism in the military leads to better control and direction of the soldiers more so when operating in chaotic conditions. Without right and good application of expertise, the military may lose its lifeblood; trust of the Americans. Professionalism is important in the military because of the nature of their roles. Those involved in wars are expected to maintain extreme levels of commitment, discipline, and skills. Concerning discipline, David (2017) argues that members of the military should maintain weapons, follow orders and use a reasonable amount of force when the need arises. Without discipline, soldiers can cause damage to property and life while undermining victory. Also, professionalism helps the soldiers to accept the direct and continuous involvement by political authorities as a regular part of their job. Notably, since the World War, there has been mounting tension, and friction between the two bodies and many have expressed concerns against the “militarization” of the country’s foreign policy and the increasing importance in the role of combatant commanders. However, professionalism has been integral in setting standards concerning what these groups can do and achieve in the sphere of foreign policy and their relationships with civilians.

Professionalism helps to create a link between the bureaucratic-military institutions and the needs and requirements of individual soldiers. Similar to traditional corporations, the military structure is designed to maximize its efficiency through observation of routinized processes and behavior (Evetts, 2013). Further, soldiers are dissuaded against taking the moral stand in favor of the bureaucracies and focus on the larger society that they serve. As such, professionalism helps to define the functional component of individual soldiers, including essential aspects of their competence, skills, and their motivation to use their knowledge and experience to cooperate with other soldiers. Professionalism is attached to the long-standing view that training and development alone does not produce the best of professionals. As such, there is a need for individual competence in essential areas, such as finance and politics. Professionalism, therefore, will act as an impetus for an individual to relish in their role and for the soldier to demonstrate their proficiency in other standards, such as caring leadership, firm ethical and moral behavior, good personal values, and confidence (Horowitz & Stam, 2014). All these characteristics are related and link up to transform a regular soldier into a strong-willed champion for group goals and societal visions.

Personal boundaries are defined as rules, guidelines or limits that people create to help in the identification of safe, reasonable or permissible ways for other people to behave towards them. There are different types of boundaries such as social status boundaries, indulgence boundaries, traffic boundaries, legal boundaries among others. Boundaries are beneficial in every sector; workplace or institution. Boundaries help in establishing and distinguishing the appropriate and non-appropriate behavior in the military. Being vibrant and energetic is encouraged in every work environment. However, limits (Boundaries) must be checked to ensure that misunderstandings and conflicts are kept at bay. Soldiers who behave in a professional manner steer off crossing the lines regarding their interaction and conversation with others thus helping foster peace at all times within a Unit.

Conclusion

In summary, the above discussion makes it clear that Professionalism is important in the military because high levels of respect, commitment and discipline are required. Professionalism enables members of the military to act ethically even when under pressure to perform many roles leading to better relations with colleagues and the society. Adherence to professional standards causes proper functioning of the military leading to victory in various missions. Military professionalism enables a soldier to build trust with colleagues and leaders. Professional standards of the military advocates for commitment. Therefore, commitment enables members of the military to tolerate hardships and move on despite the situation. Military professionalism promotes a good relationship between the military and civilians. Good relations are developed because the soldiers treat the civilians with respect and are sensitive to their needs. Professionalism help soldiers to be objective when making important decisions. Similarly, professionalism leads to smooth operations of the military because conflicts are minimized. When a soldier treats colleagues and civilians with respect, the reputation of the military improves.

References

Allen, C. D. (2011). Assessing the Army profession. Parameters41(3), 73.

Carnes L., (2015) Joint Force Quarterly 78. On Military Professionalism and Civilian Control.

National Defense University Press.

David, A., (2017). Define Military Professionalism. Career Trend. Available at:

Evetts, J. (2013). Professionalism: Value and ideology. Current Sociology61(5-6), 778-796.

Horowitz, M. C., & Stam, A. C. (2014). How prior military experience influences the future militarized behavior of leaders. International Organization68(3), 527-559.

https://careertrend.com/about-5476748-define-military-professionalism.html

McQuail, D. (2003). Media accountability and freedom of publication. Oxford University Press,

Nix, D. E. (2012). American civil-military relations: Samuel P. Huntington and the political dimensions of military professionalism. Naval War College Newport United States.

Robinson, P. (2017). Introduction: Ethics education in the military. In Ethics education in the military (pp. 15-26). Routledge.

Snider, D. M., Oh, P., & Toner, K. (2009). The Army’s professional military ethic in an era of persistent conflict. Army War Coll Strategic Studies Inst Carlisle Barracks Pa.

USA.

Schizophrenia: A Beautiful Mind Nursing Essay

Introduction

Schizophrenia is a type of severe mental condition considered to be the most chronic and incapacitating. It is linked to abnormalities of the structure and function of the brain, disorganized deeds and speech, hallucinations and delusions. As such, patients exhibit a broad array of troubles in their ability to hear, see and consequently the ability to process information from their surroundings.  Besides, they experience disruptions in their behaviors, emotions and normal thought processes. There is no established cause of schizophrenia with existing evidence showing that there are multiple influences involved. The condition has substantial consequences for the affected persons, their family and the entire community. In this sense, therefore, this essay will discuss schizophrenia with a particular focus on the real life of John Nash who suffered from the condition. The story of Nash, a famous mathematician, is presented in the movie, A Beautiful Mind. It is evident from the film that the facets of schizophrenia have a profound impact on John, his family and the public in numerous ways. By examining key scenes in the movie as well as recent studies and literature, the paper will explain various aspects of the disease such as the etiology and pathophysiology; mental health assessments, interventions and treatment; impact and the associated stigma. The story of John is just too good and fascinating to pass up as it embodies an individual who was very brilliant, but had a side which was dark, schizophrenia, that dragged his mind to an imaginary realm.

The Aetiology and Pathophysiology of Schizophrenia

At the start of the movie, the audience is introduced to a young introverted and focused man who is a graduate student in the Math Department at Princeton University. It is evident from the initial scenes that Nash is different from his classmates mainly because of his lack of being social. This is made clear when he talks to his fantasy roommate, Charles (Howard, 2017). This is the first indication in the movie that one could use to say that Nash has a mental illness. It is not clear in the film what the etiology of his condition is but a viewer can deduce a thing or two from ensuing scenes. Evidently, Nash has some kind of hereditary issue affecting the brain that may have been inherited by the son, whom it is said is as well hearing voices (Howard, 2017). As such, since Nash’s son seems to be developing alike symptoms, one may postulate that there is some genetic link causing the condition in Nash. Besides, influences in his environment like the pressure to come up with a great discovery might have set off his condition as the symptoms begin manifesting at a later stage in life when he is presented with some demands (Howard, 2017). It is, therefore, possible to assert that genetic and environmental factors may be interacting to cause schizophrenia in Nash. The pathophysiology of the disease is evident in a number of symptoms that this main actor exhibits such as delusional thinking, visual and auditory hallucinations, bizarre behavior, feelings of paranoia and a distorted acuity of reality. These are evident in his conversations with imaginary figures like Charles and Parcher as well as his fantasy encounter with Marcee.

Recent research indicates that the causes of schizophrenia are yet to be understood, but its etiology is considered to be multifactorial. As seen in the movie, multiple susceptibility genes interact with various environmental influences to bring about the condition, validating recent studies (Häfner, 2014). In particular, the disorder has a profound genetic constituent that has a high heritability of around eighty percent. This implies that about eighty percent of the variation in the trait associated with the condition may be due to genetic factors (Haller et al., 2014). Genes such as ZNF804A and NRGN have been linked to an augmented risk of developing the disorder (Williams et al., 2010). Also, several environmental influences may act together with the susceptibility genes to upsurge the likelihood of developing the illness. These connections are currently being investigated in the field of epigenetics (Haller et al., 2014).

The interaction between the genetic and environmental factors result in alterations in the neuroplasticity which are developmentally mediated. Padmanabhan and Keshavan (2014) assert that the alterations manifest in a cascade of circuit and neurotransmitter abnormalities as well as weakened connectivity, explaining why Nash was experiencing a distorted perception of reality, delusions and hallucinations.  Current research indicates that these neuropathological changes usually set in around the early years of adolescence. Declines in the gray-matter seem to take place in the initial phases of schizophrenia and have been linked to poorer disease outcomes (Padmanabhan & Keshavan, 2014). Besides, the initial changes of the condition have been associated with upsurges in the turnover of presynaptic dopamine turnover and rises in glutamatergic activity. These observations indicate the necessity of early diagnosis and involvement directed at the pathophysiological processes of schizophrenia.

Mental Health Assessments, Treatment and Interventions that Support Recovery from Schizophrenia

The main mental health assessments featured in the movie that lead to the diagnosis of schizophrenia include psychological, social and behavioral functioning. This is evident when Nash behaves in a bizarre manner when giving a speech pertaining his mathematical research (Howard, 2017).  He experiences a delusion that makes him to be taken to a psychiatric hospital. Nash’s wife and the psychiatrist also visit his office only to discover countless bits of paper obtained from magazines and newspapers which are connected in imaginary patterns using frantic lines (Howard, 2017). This, therefore, makes the doctor conclude that Nash is suffering from of advanced schizophrenia.  As such, the psychiatrist decides on a pharmacological intervention in which Nash is given antipsychotic drugs as well as an insulin shock therapy to manage the condition (Howard, 2017).  Later on in the movie, it is evident that Nash learns how to manage his symptoms without medication. This is coupled with practical support from his wife and friends who house him and get him a job respectively, supporting his recovery.

Recent research and literature indicate that schizophrenia has been identified as a very complex condition that has an array of symptoms which can also be present in other disorders. As such, according to Pinna et al. (2015), current research points out that a crucial stage during its assessment is to identify other diseases that may be present before coming to a correct diagnosis. The assessment ought to involve various specialists such as psychiatric nurses, psychoanalysts and social workers among others. Typically, assessment entails neuropsychological testing; psychopathology that monitors both positive and negative symptoms; blood tests; structural brain assessment; a measure of the body mass index; evaluation of substance use; cardiovascular tests; analysis of familial history; existence of depression as well as academic and social functioning among others (Pinna et al., 2015). These assessments are necessary for each patient.

Since the precise causes of schizophrenia remain unknown, most interventions and treatments are directed towards helping a patient manage or stop their symptoms. As such, the people affected receive person-centered care that incorporates the patient’s immediate needs, background and culture (Dixon, Holoshitz & Nossel, 2016). The interventions and treatments aim at lessening symptoms, supporting recovery goals and improving the ability to function as well as enhance the quality of life. The first approach to treatment for the condition involves pharmacological interventions as seen in the movie. A patient is given antipsychotic medication that is usually perceived as being effective in the management of the positive symptoms of the disorder. These drugs act on the brain’s neurotransmitters and as such help to control positive symptoms like delusions, hallucinations and thought dysfunction (Bevan et al., 2013). Second, psychological therapy is used along with the pharmacological interventions. This entails both cognitive behavioral therapy and cognitive remediation therapy which are essential in managing symptoms and improving the coping strategies (Bevan et al., 2013). Besides, they also help in mitigating the psychological effects of schizophrenia. Third are psychosocial interventions that comprise of family interventions, assertive community treatment, coordinated specialty care and supported employment (Substance Abuse and Mental Health Services Administration, 2018). It is clear in the movie that psychosocial interventions play a crucial role in supporting the recovery of Nash.

The Impact of Schizophrenia on the Individual, Their Family and the Community

The movie does an exceptional job in highlighting the impact of schizophrenia on a person, their family and the public. On an individual level, it is evident that the disorder has a massive impact on Nash. After being diagnosed with Schizophrenia, Nash becomes wholly withdrawn from everything and everyone; he is seen not venturing outside his house (Howard, 2017). Nash is also unable to cultivate his relationships and this is evident when his wife decides to divorce him though later on, she takes him back to provide him with care. He also has difficulties associating with individuals around him. This is evident even before diagnosis whereby he declares that he is more content and comfortable with dealing with numbers than people (Howard, 2017). Nash also loses his job due to his condition making him wander around Europe and the United States though he later gets support.

The movie also highlights the burden of the disease on family. Alicia, Nash’s wife, feels the burden of taking care of both Nash due to his incapacitating ability and their son who has just been born. It is evident from the movie that Alicia is understandably dejected over the fact that his husband is not the guy she married any longer and this results in a divorce, hence family breakdown (Howard, 2017). The condition even has a huge impact on Nash’ marriage as their bedroom matters worsen. Nash’s relationship with his family is worsened when Alicia finds their son almost drowning when his husband is bathing the child (Howard, 2017). This is because Nash suffers an episode of hallucination while bathing the newborn, putting him in an unsafe situation.

It is also evident from the film that schizophrenia has an impact on the community. The relationship between Nash and the public is disrupted by the indiscreetness of the symptoms of his condition. This is particularly because the community around him perceives him as being so brilliant but the bizarre deeds he exhibits appear incongruent. As such, he is no longer able to provide his teaching services to the community as his symptoms cannot permit him, though later on with necessary support he gets back on track.

Current research indicates that the disorder has a profound impact on patients as it completely disables them. In particular, schizophrenia affects the daily life of patients in a troublesome manner altering their lives completely as seen in the case of Nash. The early symptoms make a person withdrawn and this is usually characterized by pushing away friends and losing an interest in activities they once enjoyed like music and sports (Tracy, 2016).  Besides, early cognitive impairment may result in difficulties in thinking making a person not to thrive at school. Recent research also indicates that as a person gets older, the indicators of schizophrenia become more pronounced making it hard for one to work resulting in unemployment and even homelessness in extreme cases (Tracy, 2016). Besides, it is difficult for patients to cultivate relationships due to withdrawal symptoms as well as unsuitable mood behaviors. To conclude this, episodes of remission in which the patients do not experience the symptoms make their lives a complete bizarre (Tracy, 2016).

With regards to the impact on family, current research shows that families of people suffering from schizophrenia experience a myriad of challenges. First, families suffer objective burden that comprises of the practical, everyday problems and difficulties associated with having a family member who has a mental health illness, such as disruption of domestic routines and loss of income (Koujalgi & Patil, 2013). Second, families are also subjected to subjective burden that entails the emotional and psychological effects of the disease on members of the family, like feelings of worry and grief.  Flyckt, Fatouros-Bergman and Koernig (2015) assert that the stresses of disease exacerbations combined with inadequate social and coping abilities also entail subjective burden.

When it comes to the community, people who have schizophrenia often respond improperly in social situations and react sluggishly than normal persons due to a decline in cognitive and social skill functions. The patients usually have dulled emotional effects which makes them tend to be unresponsive or uncaring to people in the community and also lose interest in socializing. As such, other individuals find it hard to relate with them and they tend to be isolated from the community. Besides, people with the disorder might have insights, talents, good work ethics or abilities to contribute to the community but their condition makes them not able to do so most of the time. As such, Chaiyakunapruk et al. (2016) state that the disorder is, without doubt, a net cost to the community. People with the disorder can reach a point they can no longer uphold productive employment due to their incapacities. The cost of the disease is also high as a lot of money is spent in addressing its various aspects (Chaiyakunapruk et al., 2016). It is possible to note that a good comprehension of the burden that schizophrenia presents on the patients, their families and the society is important in helping to address the needs of people suffering from the condition.

Stigma and Discrimination Associated with Schizophrenia

Stigma and discrimination represent chronic adverse interactions with the surroundings that most individuals who have schizophrenia experience on a regular basis. They contribute substantially to the burden of the condition and also present significant hindrances to recovery. The movie portrays stigma as a set of negative attitudes, perceptions and thoughts that people have of Nash. This is evident in various instances in the film in which the actions of people around Nash exhibit some form of stigma. To begin with, the bizarre mannerisms and weird behavior that Nash has due to his condition, put some of his friends and students off, and hence do not want to associate with him (Howard, 2017). Also, friends at school ridicule him for writing mathematical formulae on window panes and putting on a knitted hat always. There is also a scene in the movie when Nash’s friends take advantage of his situation. In this particular scene, the friends dare him to approach and speak to an unfamiliar girl who reacts by slapping him (Howard, 2017). As such, Nash turns out to be the brunt of his colleagues’ jokes. All these scenes depict some type of labeling and stigma that Nash experiences because of schizophrenia.

Current research shows that individuals with schizophrenia face some form of stigma. According to Li et al. (2017), stigma denotes a set of stereotyped negative views, attitudes, thoughts as well as incorrect fears that the society, the press, health workers and even employers have regarding schizophrenia and which affects the lives of people suffering from the condition. It entails inadequacies in knowledge as well as problems of attitudes and behavior and may be exacerbated by a scientifically incorrect emphasis that professionals lay on the biogenetic models of disease. Li et al. (2017) point out that different forms of stigma ranging from self-stigma, public stigma to label avoidance have overwhelmingly defeating effects for patients.

According to the mainstream health system, stigma is one of the most significant challenges affecting people with schizophrenia (Li et al., 2017).  Some entities even point out that stigma is worse than the symptoms of the condition itself. This is primarily because it has an adverse impact on the patient’s psychological health, augmenting feelings of seclusion and culminating in poor self-esteem, reduced self-efficacy and thoughts of hopelessness (Li et al., 2017). Besides, research shows that the adverse impact of stigma can work through the inner emotions, perceptions and beliefs of the stigmatized individual, even beyond the effects brought about by direct discrimination (Koschorke et al., 2014). In this sense, therefore, the stigmatized person ends up with anger, despair, fear, apprehension, remorse, embarrassment and this may prevent recovery. Grover, Singh & Mattoo (2016) point out that stigma makes patients avoid seeking help or even using mental health services for fear of being labeled “a mental patient” and to avoid the adverse effects associated with stigma, hence obstructing recovery.

Stigma also has very real practical consequences such as social exclusion, limited opportunities for education and employment as well as substandard housing as is evident in the movie (Li et al., 2017). All these lower the quality of life for people with schizophrenia. Other consequences associated with stigma are disinclination for marital relationships and poor quality of care (Koschorke et al., 2014). A recent literature review revealed that stigma is associated with more secrecy, withdrawal as a strategy of coping, less mastery, decreased support and lowered social functioning which all result in an impaired quality of life (Grover, Singh & Mattoo, 2016). The society ought to offer people with schizophrenia guidance and support that they require in overcoming the effects associated with stigma. Measures such as cultivating self-esteem and coping skills as well as providing practical assistance to access education and employment can help mitigate the effects of stigma (Li et al., 2017). A better comprehension and identification of determinants of stigma may guide in determining appropriate strategies to lessen stigma and assist prevent its adverse effects.

Conclusion

The movie, A Beautiful Mind, is an excellent and truthful example of what people living with schizophrenia experience, as portrayed through the real life of the brilliant Nash. The film is able to depict the intricacies of the condition to the viewers correctly and hence educate them about what is known concerning the disorder. Besides, the great acting helps inform the audience pertaining what it is like to live with schizophrenia. The essay has managed to explain the etiology, pathophysiology, mental health assessments, interventions and treatment, impact and the associated stigma of schizophrenia. The paper has linked all these to recent research and literature. However, Nash’s case is extraordinary and deviates significantly from current research in that he somehow was able to learn on his own how to put his condition into remission devoid of medication. As much as current research shows the significance of cognitive behavioral therapy in managing schizophrenia, it suggests that it is effective when used concurrently with pharmacological interventions.   In this sense, therefore, extensive research still needs to be conducted into the issue to understand Nash’ case and this could give a clue about better future interventions for schizophrenia.

 

 

 

References

Bevan, S., Gulliford, J., Steadman, K., Taskila, T., Thomas, R., & Moise, A. (2013). Working       with Schizophrenia: Pathways to Employment, Recovery & Inclusion. Retrieved from             https://councilfordisabledchildren.org.uk/sites/default/files/uploads/documents/import/wo            rking_with_schizophrenia.pdf

Chaiyakunapruk, N., Chong, H., Teoh, S., Wu, D., Kotirum, S., & Chiou, C. (2016). Global          economic burden of schizophrenia: a systematic review. Neuropsychiatric Disease and           Treatment, 357-373. doi: 10.2147/ndt.s96649

Dixon, L., Holoshitz, Y., & Nossel, I. (2016). Treatment Engagement of Individuals         Experiencing Mental Illness: Review and Update. World Psychiatry, 15(1), 13-20. doi:    10.1002/wps.20306

Flyckt, L., Fatouros-Bergman, H., & Koernig, T. (2015). Determinants of subjective and   objective burden of informal caregiving of patients with psychotic disorders.      International Journal of Social Psychiatry, 61(7), 684-692. doi:          10.1177/0020764015573088

Grover, S., Singh, A., & Mattoo, S. (2016). Stigma and its correlates in patients with         schizophrenia attending a general hospital psychiatric unit. Indian Journal of Psychiatry,         58(3), 291-300. doi: 10.4103/0019-5545.192024

Häfner, H. (2014). The Concept of Schizophrenia: From Unity to Diversity. Advances in   Psychiatry, 2014, 1-39. doi: 10.1155/2014/929434

Haller, C., Padmanabhan, J., Lizano, P., Torous, J., & Keshavan, M. (2014). Recent Advances in Understanding Schizophrenia. F1000prime Reports, 6. doi: 10.12703/p6-57

Howard, R. (2017). A Beautiful Mind Full Movie in HD 1080. Retrieved from      https://www.youtube.com/watch?v=bgfZ7db0e6I

Koschorke, M., Padmavati, R., Kumar, S., Cohen, A., Weiss, H., & Chatterjee, S. et al. (2014).    Experiences of Stigma and Discrimination of People with Schizophrenia in India. Social    Science & Medicine, 123, 149-159. doi: 10.1016/j.socscimed.2014.10.035

Koujalgi, S., & Patil, S. (2013). Family burden in patient with schizophrenia and depressive          disorder: A comparative study. Indian Journal of Psychological Medicine, 35(3), 251-   255. doi: 10.4103/0253-7176.119475

Li, J., Guo, Y., Huang, Y., Liu, J., Chen, W., & Zhang, X. et al. (2017). Stigma and          Discrimination Experienced by People with Schizophrenia Living in the Community in      Guangzhou, China. Psychiatry Research, 255, 225-231. doi:       10.1016/j.psychres.2017.05.040

Padmanabhan, J., & Keshavan, M. (2014). Pathophysiology of Schizophrenia. Retrieved from             https://www.researchgate.net/publication/287237645_Pathophysiology_of_Schizophrenia

Pinna, F., Fiorillo, A., Tusconi, M., Guiso, B., & Carpiniello, B. (2015). Assessment of      functioning in patients with schizophrenia and schizoaffective disorder with the Mini-        ICF-APP: a validation study in Italy. International Journal of Mental Health Systems,        9(1). doi: 10.1186/s13033-015-0030-x

Substance Abuse and Mental Health Services Administration. (2018). Schizophrenia. Retrieved   from https://www.samhsa.gov/treatment/mental-health-disorders/schizophrenia

Tracy, N. (2016). Schizophrenia Symptoms and the Impact on Everyday Life. Retrieved from             https://www.healthyplace.com/thought-disorders/schizophrenia-symptoms/schizophrenia-  symptoms-and-the-impact-on-everyday-life/

Williams, H., Norton, N., Dwyer, S., Moskvina, V., Nikolov, I., & Carroll, L. et al. (2010). Fine   mapping of ZNF804A and genome-wide significant evidence for its involvement in     schizophrenia and bipolar disorder. Molecular Psychiatry, 16(4), 429-441. doi:    10.1038/mp.2010.36

THE MANUFACTURE OF DASHBOARD BY TOYOTA COMPANY

The Manufacture of Dashboard by Toyota Company

Introduction

In the modern world, cars have become a necessity in life in addition to providing a great state of comfort. Car manufacturing industry play a vital role in the economy of developed countries. In the interior of a car, a dashboard, which is a crucial part of a car, is used to control different activities both inside and outside the car. The functions also provide comfort to both the driver and the passengers. There are several functions in the dashboard of a car that includes; fuel gauge, oil gauge, music system, speed meters, navigation system, video device and control, control and different holders in the centre console. For a company to achieve its goals, it must be in a position to understand the customer needs and predict the changes required for an existing or a new product to offer in the market. (Soota et al., 2008).

A firm in any industry should improve the customer’s satisfaction by reducing the margin between internal standards and external customer requirement (Lin 2007). Quality Function Deployment (QFD) is a customer-based tool that is used in the design of a new product or improving an existing product so as to achieve the maximum customers’ satisfaction (Wang, and Chen, 2012). Referring to Kapferer (2012), it is used in various stages such as prototype analyses, marketing strategies, engineering design, quality management and sale of a particular product. The idea of QFD was first gestated in the late 1960s (Shukla, and Chauhan, 2016; Akao, 1990). It was adopted by various companies to evaluate the voice of the customer and translate into a product requirement or an engineering design so as to produce a higher quality product that meet the customer’s need. This paper focuses on QFD by use of house of quality(HOQ). In this paper, a QFD for establishment of a motor vehicle for Honda and Toyota cars is discussed. By use of questionnaires, the voice of the customer is heard, translated into customer needs and then converted into technical characteristics. From the house of quality, useful concepts are selected and generated for use.

Collecting information

Information concerning customer needs on a product can be collected by administering questionnaires, observations, field reports, focus groups or one-on-one interviews. According to Neuman (2013), individual questioning and evaluation is more effective than focus groups. The interview should involve at least 30 customers so as to achieve the desired goals. In addition, mailing and telephoning can also be used though they are less effective. Information is delivered in customers’ own phrases. To achieve this, data is collected and arranged in a tree like diagram with three to four levels. Selection is done at appropriate levels to fit the customer needs. For bulk qualitative data, affinity diagrams can be used to group and arrange them into subgroups according to their similarity (Bryman 2015). Customer needs can be formed and structured using Cluster analysis.

In this process, a group of customers owning cars, technicians in the car repair centres of Toyota, lecturers and students of NWFP were selected. Two surveys were carried out to investigate the multipurpose cup holder on the centre console of a car. The first survey was to come up with a way of improving a car’s dashboard. The second survey involved knowing the voice of the customer on functions of results from survey 1. Data collected was analysed for the purpose of identifying the customer needs. The needs were given a scale rating of between 1-5 according to their level of significance. This information was vital in building a House of Quality for the car dashboard.

Upon identifying the customer needs, development of a house of quality begins. This involves a series of processes as shown in the flow chart.

 NEED
 Pinpoint relevance of customer requirements.

 

 Evaluate technical features and product specification according to customer needs

 

 Establish relationship between customer requirements and product characteristic

 

 Check the prior generation products and fierce products

 

 Benchmark customers conception

 

 Establish interactions between product characteristics technical requirements

 

Figure out the important and difficult rating

 

 Scrutinize the matrix and finalize the plan strategy

 

Stating and grouping customer requirements

 

Affinity diagram

            Affinity diagrams are used to categorise customer requirements into three groups. Information concerning customer requirements is generated through a brainstorming process. Grouping customer requirements help in identifying customer satisfactions. Affinity diagram gives a clear picture of detailed requirements.

primary
material
 Impressive appearance
 secondary
 Material quality
 Noise and vibration
 reachability
 Smart design
 tertiary
comfortability
Good finish
Proper fixing
Rigid material
Appealing design
Smooth finish
User friendly
Unfading material
Fine texture
Ease of cleaning
Environmental friendly
 

 

 

 

 

 

Description of WHATS.

The process of highlighting customer needs is a critical section of quality function deployment. It involves various processes such as concept creation, selection, benchmarking and coming up with the desired features. This process involves collecting raw data from the customers, interpreting the data collected and assessing the results and processes. Results from the survey which are the voice of the customers are converted to customer needs which are then ranked according to the level of importance as shown in the table.

The voice of the customers Needs Importance
The car should maintain constant internal temperatures through an integrated system Integrate a forced exhaust system 5
Should create room for attachment of cups Multifunctional container 4
The system should not have any adverse effects on existing features. No obstruction of car operation 1
The system should respond quickly Systematic operating system 5
The system should be user friendly Functional design 1
Easy and secure operation of the system Comfort design 2
Good appearance Attractive design 5
System should be operated automatically Automatic operating system 2
Good budgetary Cost effective 3
System should be long lasting and authentic Authentic design 4
Cup holder should be compatible with different cars Adaptable design 4
The system should have a smooth finish Fine polish 3
The system should produce little noise Minimised noise 3
The system should have an air freshener compartment Fresh air 4

Description of HOWs

In the automobile industry, there are several competitors such as Toyota and Honda. Competitive comparison between the two companies was conducted through questionnaires administered to various customers to access the importance of each requirement. The customer investigates the contentment acquired by the use of a particular product. The HOWs comprises of technical description of the product as represented on the table.

Need No. Metric No. HOWs Units
2, 3, 6, 7, 11 1 Container diameter Millimetres
2, 3, 6, 7, 9, 10,11 2 Number of components Instinctive
1, 8 3 Weather conditions instinctive
1, 3, 4, 6, 10 4 Blower area mm2
3, 5, 6, 7 5 Distance between controls and the user mm
1, 4, 8, 10 6 Time of operation seconds
3, 5, 6, 7 7 Dimensional aspect mm
6, 10 8 Container depth mm
4, 6, 10 9 Duct area mm2
1, 4, 7, 13 10 Air freshener compartment mm2
2, 5, 6, 9, 10, 11 14 Force required for clamping Newtons
2, 7, 9, 10, 11 11 Adjustable base instinctive
1, 4, 8, 10 12 Blower speed rpm
5, 9, 10 13 Stiffness of the spring N/m

 

 

 

 

The HOQ for Toyota Car Dashboard.

This is a vital tool that is widely used by companies in producing an end product that suit customer needs. According to Borjesson and Jiran (2012), HOQ is a theoretical structure that provides a multifunctional design and communications. It has seven elements that includes:

Customer needs (WHATs)

These are commonly known as voice of the customer and are highlighted on the left side of the matrix. They form the customer aspects, requirements and the desired quality. They can be easily captured by use of an all-round and comprehensive report on customer needs. These is done by a group of experts in the design team through a process of brainstorming. Nevertheless, brainstorming process suffers challenges due to disagreements within the design team. Bhatti (2017) notes that the use of special procedures can result to a fruitful brainstorming without the interference of voice of the customer. Once the customer needs are recognised, they are sorted into groups and subgroups. A sample size of 30 customers was selected and relative weight of each outcome calculated as a percentage of the total scores. VOC are arranged in order of priority. In our case, forced exhaust system had the highest score of 5.

Product Technical Requirements(HOWs)

These are design characteristics, product features, engineering characteristics and attributes and quality attributes demanded by the customer. They describe the product using engineering language hence also called voice of the company. According to Sullivan (1986), ‘Engineering characteristics are the product requirements that relate directly to the customer requirements and must be selectively deployed throughout the design, manufacturing, assembly, and service process to manifest themselves in the final product performance and customer acceptance.’ For the HOQ in this project, the size of the blower has the most scores of 143. This satisfies the customer’s need of having a forced exhaust system, affordable design, easy to use, reliable, appealing and adjustable.

Interrelationship matrix.

This is the link between the customer requirements and the design parameters. These parameters are design dependent and their contributions vary with customer requirements. The correlation between the customer needs and the parameters are represented by use of symbols (strong 9 medium 3 and small 1).

Customer important requirements.

These are selective requirements that usually affect each sceptically. For example, a customer may require a larger diameter of cup holder and at the same time desire small dimensions of the dashboard parts. This bring conflict between the two needs. Hence the necessity of assigning priority to the preferences. Priorities can be allocated to customer needs by use of analytical hierarchy process or cost technical factors (Gharakhani and Eslami 2012)

Benchmarking customer perception. (planning matrix)

This section of the QFD establishes how well the design team has met the customer requirements in competitors in the same sector of operation. It displays the level of necessity of each requirement that the design team and its competitor’s desires to achieve. Under each requirement, a company gives customer rating of between 1 and 5. A combination of these ratings and the weighted progress of each need gives an overall scale of a company performance. Each VOC for both company is calculated and relative comparison done to assess competing needs in the industry.

Technical correlation matrix

This is the roof of the HOQ. Conflict subsists within the present designs. Technical correlation matrix establishes a relationship between product requirements and design requirements so as to reduce the conflict. They are represented by symbols. ( Strong Positive, + Positive, X Negative, Δ Strong Negative).  These symbols are keyed in where a connection exists.

Technical properties and targets.

This section gives priorities allocated to technical requirements. It is an indicator of progress made in coming up with a particular requirement. It also gives the target value met by a particular design. Desired achievement in design may not be met due to financial and technological challenges encountered by the firm.

Outcomes, recommendations and conclusions

This project focused on coming up with a QFD model for improving the design and features of a car dashboard. Addition of features with specifications matching customer requirements leads to achieving customer satisfaction among other competitors. Through Competitive Technical analysis, customer needs can be satisfied by critical consideration of competitive and affordable cost, attractive design, automation among others. Hence, there is need to focus on these areas so as to satisfy the customer.

It is recommended that the firm develops a more modern dashboard to suit the first growing digital world. Through experimentation and simulation, the firm should come up with an automated system such as temperature regulation system to aid maintaining favourable temperatures within the car. The design should also be user friendly as most customers would prefer a less complicated dashboard. Firm should also design an affordable dashboard to easy the burden of repair or replacement cost. Parts of the dashboard should be minimal since a complex design would be inconvenience customer’s use. Material used to make the car dashboard should be durable and resistance to wear and tear. Material used for the dashboard should be rigid and strong so as to minimise the effect of vibration and reduce noise. Accurate dimensioning should also be considered during design of the dashboard. In addition, the design should encounter few problems during start-up. These problems are faced during manufacture, distribution and installation.

In conclusion, QFD has been developed and is being used widely in the automobile industry. This project focuses on two developments that includes; a multiuse cup holder and forced exhaust system. The “Voice of the Customer” are identified through questionnaires. WHATs are then converted into product requirements(WHATs). These requirements are then converted to engineering descriptions(HOWs). A house of quality establishes a connection between these two. The customer requirements are rated with a scale of between 1 and 5 and importance allocated according to the level of importance.

 

 

 

 

Reference List

Akao, Y., 1990. Quality Function Deployment: Integrating Customer Requirements into Product         Design, (English translation).

Bhatti, W.A., 2017. Identifying Customer Needs through Knowledge Sharing in Inter-Firm Relationships. Journal of Promotion Management, pp.1-13

Borjesson, F., and Jiran, S., 2012. The general of modular product architecture deploys a pragmatic version of quality function deployment.

Bryman, A., 2015. Social research methods. Oxford university press.

Gharakhani, D. and Eslami, J., 2012. Determining customer needs priorities for improving service quality using QFD. International Journal of Economics and Management Sciences1(6), pp.21-28.

Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

Lin, W.B., 2007. The exploration of customer satisfaction model from a comprehensive perspective. Expert Systems with Applications, 33(1), pp.110-121.

Neuman, W.L., 2013. Social research methods: Qualitative and quantitative approaches. Pearson education.

Shukla, M.K. and Chauhan, B.S., 2016. Quality function deployment in India: A Review. International Journal4(2), pp.587-591.

Soota, T., Singh, H. and Mishra, R.C., 2008. Developing strategies fostering product development using multicriteria analysis. International Journal of Industrial and Systems Engineering, 3(1), pp.87-103.

Sullivan, L. P., 1986. Quality function deployment, Quality progress pp 39-50

Wang, C.H. and Chen, J.N., 2012. Using quality function deployment for collaborative product design and optimal selection of module mix. Computers & Industrial Engineering63(4), pp.1030-1037.

 

Augustine of Hippo on Marriage as Good and Holy:

Augustine of Hippo on Marriage as Good and Holy

Saint Augustine had a mother who was a Catholic and a father who was a pagan. He was a teacher in literature in Rome and Milan who had joined the cult in early days though wasn’t that happy with their philosophies. After conversion to Christianity and getting baptized, he paid much interest in theology and philosophy where he had his own approach to Christian values. He wished that the world would be better if it had a single church(Brown, 2013).After he was ordained to be a priest, he started writing articles which are more than 100 and influences a lot of the medieval worldview. One of the most prolific articles in his big collection is about Marriage as a Holy union and good to the world. Hi views on marriage and sexuality are still vibrant and applicable today despite it being an article written centuries before.

In his defense, Augustine places marriage as one of the social creation of God where people will be united together because of that union. He continues to support God’s creation in that he had a reason to have both genders at the beginning of the world and sexual intercourse will be a practice to increase the world’s population. Because of this Holy marriage, two people of different genders come together as companions and share a family creating a strong bond of trust through being faithful to each other.

Saint Augustine had was a sect member and a pagan before converting to Christianity. Due to all the transformation with different approaches towards marriage, he could write on issues from a personal view since he had enough experience. He had seen enough through his life and wanted to change something in marriage. He wanted to compare marriage in the past to the present. His teachings on marriage are intimate, some needs to be developed while others need to be interpreted in a spiritual way.

According to Augustine, marriage is an intimate relationship of love and should go hand in hand with sexual intercourse of the partners to show sign of acceptance to each other. Through this, married couple increase their affection for each other and unifies the union to one thing which will bore fruits when children are a part of the union with love and trust. All these should be done with love and fidelity with unbreakable togetherness between the spouses.

He adds that marriage should be in a natural setting for recreation, with personal love from partners as an institutional matrimony with conjugal love to make children in trust to build a unifying bond between the two. The teachings had a lot of insight into the modern marriage situation that the partners are supposed to be controlled by matrimonial bond to solve marriage issues.

St. Augustine had his own controversies in relation to marriage especially with the Manicheans in his early Catholic life and the Pelagians later. For the Manichean doctrines, they view marriage as pro-sexual, undermining the man’s ability to value and respect the dignity of sex in marriage. For Augustine, he is defending procreative nature of marriage. The Pelagians viewed marriage in current human sexuality as being unproblematic. According to the Manicheans, marriage is evil since the body generally is the object of the devil, its work is evil and marriage being a part of the body which carries the soul is also evil. He believed in his writings that conjugal acts are holy since procreation is the holy-gods promise. That’s why he insists on the importance of sex in a marriage.

Augustine doesn’t see the value of marriage as only for procreating but also the aspect of personal reasons to individuals who are ready to come together as married couples.  It is not necessarily to have children as the main reason for marriage but also to fulfill their reasons for marriage(Tyson, 1999).Due to this belief, marriage is more of a natural association between the sexes in a mortal state. In his early days he emphasized on love as the primary goal and if by chance the couples don’t get children, there is “ordo caritatis” unity. Even in an old age of their marriage, love between husband and wife is still vibrant. He further adds that fidelity will give respect to each other and bodies of married people are holy if they respect, be faithful to each other and to their God.

It is through the greatness of understanding on marriage today on St. Augustine’s doctrine’s, that fidelity is one of the greatest values in marriage and is meant to be permanent which should be cherished and taken care of. Today, humanity has changed in the way they view on marriage. Modern man has found a comfort zone in marriage which initially was guided by certain principles than having the freedom to do whatever you want.

In many years immediately after the second council in the Vatican, some theological writers have been confined in believe of institutional marriage which should be replaced by a bit of person-centered approach. In the institutional understanding of marriage, children have to be born to make it get understood but Vatican council had another persona list role of approach. It is of great outlook on what is the relationship between the husband and wife free from many restrictions and enjoys marriage.

Augustine view on marriage is a traditional one and it’s viewed as past on institutional matrimony compared to the modern of personal fulfillment. For Christian in general, marriage is an institutional, of divine law from the human law.  It means that the human race won’t be able to change the fact that agreements and invention have been derived from God. It now suites personal.

It’s a reality that we should acknowledge that some slacker terminologies of St. Augustine when narrates of concupiscence looks like he is saying its simple presence involving a definite personal responsibility which is not so. What Augustine have is that it may be only be observed as wicked as it arises from sin and tempts to sin, where is not a sin in itself. It defines this clearly is a convinced, not good disposition or quality. This is also clearly reflected in the many texts where St. Augustine describes that every sin is forgiven during baptism, concupiscence though outstanding after its response

Nevertheless, someone has to think to the question of whether, in Saint Augustine’s state of mind, concupiscence if it’s simply to be related with sexual liking in itself while concretely in matrimonial, with that inclination which attends the physical unification between the bodies of the partners if they participate in the conjugal act. We are supposed to reason out things out progressively. Foremost, let us preserve in mind that the assumption of good minds is in relentless confusion; it sometimes improvements and develops; not commonly but it even changes fundamentally, directly above all, in the case of persons who experiences a very extreme transformation, getting from one thought of life of real human nature to another, that is totally altered.

It is very important to consider mostly the writings of his last years when he was at least mature and could define situations in the right way. He had already gone for theological studies and would thoroughly examine the landscape of concupiscence. This is the period of his anti-pelagian literature. On other twist on his life, particularly during his long disagreement with the Pelagian bishop Julian, who really deserves appreciation because the interaction between the two resulted to rise to Augustine’s writings., in the “De nuptiis et concupiscentia’wherever his fearin clarifying  certain more elusive characteristics of his thoughts helps us massively to get that believe with greater fastidiousness.

Julian had perverted St. Augustine’s criticisms on his concupiscence, though they disguised a damaging judgment about attraction stuck between the genders, or rather on sexual desire in spousal relations. Augustine strongly doesn’t align with Julian’s duties of ever condemning sexual transformations or unification or profitability: He questions the general behavior of married couples and their contact to show love and affectionate in public even before their children. Why they are ashamed to show who they are and the love of marriage they share. In his argument, there no doubt it lies partly in the authoritative nature of the sexual desire, as a result, an uncertain     component easily matures even into spousal sexuality. The uncertainty is realized in the very matrimonial practice. It should be from a practice of love but not an act of egocentricity. With the Centre, a stone is the self-giving and commitment to each other, packed with kindness and contemplation.

It is not ethical to use the other partner as an object to be exposed to one’s bodily cravings and deprived of the desire to love the other partner. Establish a violation against the heart of matrimonial admiration and self-donation. According to St. Augustine, Partners who naturally love each other are willingly conscious of this important component in their connection which involves purification, their relationship is consequently not to a certain degree which they can casually thought lessens themselves.

In addition to the sexy urge, besides being arrogant, tends to be undiscriminating; it can easily separate from love drawing a person in a course that love cannot work. An example is a single-sex who feels a dominant charm towards a married friend. Being married doesn’t outline attraction difficulties. A wedded person too can unexpectedly overcome by an unwanted and perhaps seemingly overwhelming sexual craving for a third soul. In between married people, the desire may come at a time when it cannot be tenderly satisfied, if the man cares for his spouse, he will mostly find himself drawn into this struggle. For example, he may discover that his wife isn’t into intercourse, and yet he goes on.

 

In his condition of concupiscence in which our contemporary state go together with the heavens of marriage within the society, it is transferred from one generation to the other by the quality of chastity. Augustine’s thoughts have been summarized in simple and in a single expression, where he differentiates “the goodness of matrimonial from the evil of bodily concupiscence, which is well used in married chastity” Consequently the original natural relationship of humanoid society as husband and wife. God didn’t form these separately by himself and link them together as strange from birth, but He generated the one out of the former, having set a sign also of the command of coming together during woman formation. They are merged one to the other side to side, who march together, looking at each other’s they walk. In love, there is also the association of companionship in kids, which is the one only worthy fruit, not only of the union of man and woman but of the sexual intercourse.

For Augustine, married chastity comes from his explanations on the Creation justification of Adam and Eve, their character previously and after the tumble. Before they had fallen, they were uncovered and yet sensed no humiliation (Gen 2, 25) not for the reason that they may perhaps not see, but since they felt zero in their members to make them embarrassed of what they saw. In the story of Genesis, God desired to produce all mankind out of one, for that reason, they might be believed in their social order not only by the resemblance of compassionate but also by the union of attractiveness. Due to this, the first natural connection of social humanity is man and wife. Neither did God generate these separately personally, joining them together as strange by birth, but He generated the one out of the other, creating a sign of the authority of the coming together. For they are amalgamated one to another sideways, who march together. After that, it monitors the connection of companionship in kids, which is the most valuable fruit, not the unification of male and female, but of the sexual intercourse.

In that state of assimilated nature, Adam and Eve detected nothing anarchic nothing on selfishness, just conjugal attraction stuck between them. Not ordinary character, but that of their thoughts and drive, which would have determined the circumstances of having conjugal relationships. All these would have matched abundantly and naturally to their own intelligence of common contribution in the application of their reproductive supremacy. According to St. Augustine, if there ought to be no evil, man would have been brought through organs of generation, not by submissiveness over other members to a silent and ordinary will.

Augustine reacts to Adam and Eve after discovering if their sinful nature, their sexual desire appeared to have shattered free from conjugality,anintelligence of humiliation resulted in them cover themselves, and they have clothed themselves. It is very significant to bear in mind that this embarrassment was just amid the two who were partners, and was only. It was exactly into their common association that humiliation had to go in. They were not humiliated to be partners, nor to prompt their matrimonial warmth, but they were embarrassed at a new constituent that exposed the pureness which they had experienced in their natural relationship.

 

 

 

References:

Brown, P. (2013). Augustine of Hippo: a biography. Univ of California Press.

Tyson, J. R. (Ed.). (1999). Invitation to Christian spirituality: An ecumenical anthology. Oxford University Press, USA.

Clark, E. A. (1986). «Adam’s Only Companion»: Augustine and the Early Christian Debate on Marriage. Recherches Augustiniennes et Patristiques,

Augustine, S. (1996). St. Augustine on marriage and sexuality (Vol. 1). CUA Press.

Hunter, D. G. (1994). Augustinian Pessimism?: A New Look At Augustine’s Teaching On Sex, Marriage, and Celibacy. Augustinian Studies,

 

 

 

 

 

 

 

 

 

 

 

 

Bank Financial Management Commercial Banking Company of Australia Limited

Executive summary

The interest rate risk in the banking sector refers to a bank’s exposure to extreme changes and movements in interest rates. Whether current of prospective, the interest rates affect the bank’s capital and assets while also affecting its earnings. The bank therefore has to develop strategies to manage this risk.

This risk is important to the banking industry and therefore if successfully managed it can have an important impact on the institutions profits and on the shareholder value. Excessive interest rate risk can pose a huge threat to a bank’s current capital base and on the future earnings if not managed properly.

The report below shows a detailed analysis of the institution’s current interest rate risk profile currently and also the predicted rates which gives a description of the current position that the institution is in.

The report also analyses and recommends the different strategies that the institution should adopt in order to ensure that it manages the interest rates risks effectively so as to continue making profits and increasing its asset base.

 

 

Table of Contents

Interest Risk. 4

Cash Flow Ladder for the Interest Rates. 4

Variance-covariance method. 7

Question 2. 8

Strategies to manage interest rates and their impact to the banks risk profile. 8

Swaps. 8

The use of interest rate futures to hedge income gap position. 9

The use of option contract 10

  1. d) Why I recommended the strategies. 11

References. 12

 

 

 

Interest Risk

Cash Flow Ladder for the Interest Rates

The tables below show the calculations and the obtained interest rate sensitive assets and liabilities using the indicated time buckets which then are used to represent the cash flow ladder.

Today   DATE YOU WANT  
28-Feb-18 01-Sep-17 28-Feb-18 28-Feb-22
      1.500000                   1.884302                 12.000000
Days -180 0 1461
 6 months      
Today    
28-Feb-18 01-Sep-17 01-Aug-18 28-Feb-22
      1.500000                   2.290346                 12.000000
Days -180 154 1461
1Year

28-Feb-18

01-Sep-17 28-Feb-19 28-Feb-22
      1.500000                   2.992407                 12.000000
Days -180 365 1461

18 Months

28-Feb-18 01-Sep-17 01-Aug-19 28-Feb-22
      1.500000                   3.637234                 12.000000
Days -180 519 1461

24 Months

28-Feb-18 01-Sep-17 28-Feb-20 28-Feb-22
      1.500000                   4.752156                 12.000000
Days -180 730 1461

30Months

28-Feb-18 01-Sep-17 01-Aug-20 28-Feb-22
      1.500000                   5.783513                 12.000000
Days -180 885 1461

3years

28-Feb-18 01-Sep-17 28-Feb-21 28-Feb-22
      1.500000                   7.556334                 12.000000
Days -180 1096 1461

42Months

28-Feb-18 01-Sep-17 01-Aug-21 28-Feb-22
      1.500000                   9.184633                 12.000000
Days -180 1250 1461

4 Years

28-Feb-18 01-Sep-17 28-Feb-22 28-Feb-22
      1.500000                 12.000000                 12.000000
Days -180 1461 1461

 

 

  1. b) I

DEAR means Daily Earnings at Risk represents the estimated potential loss of an institutions value over a particular period of time mainly one day which is mainly a result of the extreme changes in market conditions such as the interest rates.

 II

The Value at Risk also known as VaR analyses usually provide a measure of the risk that a company faces at a particular time. This VaR approach gives an indication of the maximum loss which a company could face if and when the market interest rates change adversely all of a sudden. Thus, VaR means the maximum loss that a company is likely to face within a given time period for a specific probability mainly with 95% probability.

III

I used the below method in my calculation

Variance-covariance method

This is a method that assumes a normal probability distribution of asset price volatility; it then calculates the maximum loss which is usually within the required probability. It also assumes the probability distribution of instruments’ value volatility. Variance-covariance is more often than not regarded as too simplistic for more complex, exotic instruments.

Assumptions

In the above calculations, the relationship assumes that the yield changes are independent which means that those losses which are incurred today are not related at all to those losses that were incurred yesterday or to those that will be incurred tomorrow.

  1. c) Meaning to the institution

The VaR or value at risk model and calculations measures the amount of financial risk that is associated with the total value of a firm. This is not just the interest rate risk associated with its cash flow. The value at risk also shows the amount of maximum potential loss that is within a specified period and with a degree of confidence. This contrary to earnings at risk, value at risk indicates the degree of confidence that a company’s losses will not exceed a certain amount of dollars over a specified period

Question 2

Strategies to manage interest rates and their impact to the banks risk profile

The descriptions below show the strategies that we have developed and come up with that will be used by the institution so as to manage the risks in the changes in the value of the portfolio as a result of the potential future interest rate changes that have been identified in the previous sections of the report.

Whenever the interest rates increase, firms are faced with a more difficult, challenging and potentially critical scenario. They therefore have to be smart and come up with strategies that shall ensure that they are well cushioned from the very likely effects that would occur which can include: high attrition, a reputation being at risk, increased portfolio at risk and reduced market share.

Swaps

Interest rate swaps mainly involve the trading of a variable rate loan structure for which one has a fixed rate or the opposite of it. Interest rate swaps and other hedging strategies are strategies which have for a long time provided a way for companies to help manage the potential impact on their loan portfolios of changes that take place on a daily basis on the rates of interests. An interest rate swap represents is a contract between two involved parties so as to exchange a stream of cash flows according to terms decided prior to that. The transaction involves trading costs which are related to two different types of loans; this mainly involves swapping the terms of a floating rate loan for those of a fixed rate loan or the opposite.

Impact of swaps on the Banks risk profile

They lock in a fixed interest rate, taking advantage of a favorable environment and removing interest rate risk as a consideration. This method also reduces current interest expense by swapping for a floating rate that is lower than the fixed rate currently being paid without having to refinance a loan and pay the associated costs. The bank is also able To effectively match interest rate sensitive assets and liabilities. The institution will also be able to diversify financial risks in a loan portfolio by converting a loan portfolio from all fixed or all variable to a very good mix of the two cases. The institution will also be able to change the interest rate composition of a current loan without facing the expense associated with refunding or issuing new debt.

The use of interest rate futures to hedge income gap position

Generally, there usually is a very close relationship that exists between the interest rates and the net interest margin in a way such that any slight fluctuation or change in the market the interest rate will be affected immediately to the margin. The increasing interest rate will lead to a very high net interest rate while the opposite is also true. It therefore becomes a necessity for the bank to buy one or more treasury bills which will be for future delivery.  In the event of a falling interest rate, the following decrease that occurs in net interest margin will definitely be taken care of by the gain that has occurred in the long hedge in a future market scenario in the negative income gap. Together with the long hedge, there is also use of short hedge in order to reduce the interest Rate risk in the negative dollar gap. As the interest rate rises, there is a likelihood that the unhedged bank will suffer significantly the net decline in its net interest margin. A combination of both the short and long hedge, the bank will benefit from future hedge that can be used in order to compensate for the loss in the net interest margin.

The use of option contract

This is a very common strategy that has been applied and tested in many institutions in the institutions ways of managing the risks associated with interest rate risks and can be applicable in the situation of CBC.

In the positive income gap, the investors and other parties involved or interested can buy call option so as to protect themselves from interest rate risks. From buying that option, the buyers can therefore have that ability to obtain the necessary instruments which is at a specific price. While that takes place, the sellers have to have the willingness to sell these instruments at the same price. If therefore the interest rates fall, the bank can lose a lot of cash. However, the gain from its open option position can help in a huge way to partially if not completely offset that loss that has been incurred before. If there is a rise in the interest rates, the gain in the net income will be only partially compensated by the other option.

Coming back to the negative impact income gap case, the investors can buy interest rate put option in order to deal with that risk. This put option will give those buyers the freedom to sell a certain specific underlying security which will be at the price that has been set prior in the contract and makes the seller to be obliged to buy the underlying security. This will automatically make the buyers to earn some profit from that put option and can use it tom compensate for the interest income loss from the negative dollar gap.

The above strategies if adopted will be of great importance to the bank in its future plans since it will have set ways of managing the risks associated with adverse changes in interest rates.

d) Why I recommended the strategies

I came up with the strategies that I have listed below since they have been used and experimented previously by other banks and found to be successful. They have successfully been used to manage the risk in the change in the value of the portfolio as a result of the potential future interest rate changes that have been identified in the previous sections of the report.

 

 

 

 


 

References

https://privatewealth.usbank.com/insights/managing-interest-rate-risk

Dowd, K., Blake, D. and Cairns, “Long-Term Value at Risk,” The Journal of Risk Finance, Vol. 5, No. 2, 52–57, 2004.

Basel Committee on Banking Supervision, “Interest Rate Risk on the Banking Book,” Basel, June 2015.

Harris, M., “Back testing Your Interest Rate Risk Model,” CFO & Finance Digest, Issue #1, August 2010. Available at http://www.wib.org/publications__resources/cfo__finance_digest/2010–12/augl0/harris.html.

 

 

Interest Risk

Cash Flow Ladder for the Interest Rates

The tables below show the calculations and the obtained interest rate sensitive assets and liabilities using the indicated time buckets which then are used to represent the cash flow ladder.

Today   DATE YOU WANT  
28-Feb-18 01-Sep-17 28-Feb-18 28-Feb-22
      1.500000                   1.884302                 12.000000
Days -180 0 1461
 6 months      
Today    
28-Feb-18 01-Sep-17 01-Aug-18 28-Feb-22
      1.500000                   2.290346                 12.000000
Days -180 154 1461
1Year

28-Feb-18

01-Sep-17 28-Feb-19 28-Feb-22
      1.500000                   2.992407                 12.000000
Days -180 365 1461

18 Months

28-Feb-18 01-Sep-17 01-Aug-19 28-Feb-22
      1.500000                   3.637234                 12.000000
Days -180 519 1461

24 Months

28-Feb-18 01-Sep-17 28-Feb-20 28-Feb-22
      1.500000                   4.752156                 12.000000
Days -180 730 1461

30Months

28-Feb-18 01-Sep-17 01-Aug-20 28-Feb-22
      1.500000                   5.783513                 12.000000
Days -180 885 1461

3years

28-Feb-18 01-Sep-17 28-Feb-21 28-Feb-22
      1.500000                   7.556334                 12.000000
Days -180 1096 1461

42Months

28-Feb-18 01-Sep-17 01-Aug-21 28-Feb-22
      1.500000                   9.184633                 12.000000
Days -180 1250 1461

4 Years

28-Feb-18 01-Sep-17 28-Feb-22 28-Feb-22
      1.500000                 12.000000                 12.000000
Days -180 1461 1461

 

 

  1. b) I

DEAR means Daily Earnings at Risk represents the estimated potential loss of an institutions value over a particular period of time mainly one day which is mainly a result of the extreme changes in market conditions such as the interest rates.

 II

The Value at Risk also known as VaR analyses usually provide a measure of the risk that a company faces at a particular time. This VaR approach gives an indication of the maximum loss which a company could face if and when the market interest rates change adversely all of a sudden. Thus, VaR means the maximum loss that a company is likely to face within a given time period for a specific probability mainly with 95% probability.

III

I used the below method in my calculation

Variance-covariance method

This is a method that assumes a normal probability distribution of asset price volatility; it then calculates the maximum loss which is usually within the required probability. It also assumes the probability distribution of instruments’ value volatility. Variance-covariance is more often than not regarded as too simplistic for more complex, exotic instruments.

Assumptions

In the above calculations, the relationship assumes that the yield changes are independent which means that those losses which are incurred today are not related at all to those losses that were incurred yesterday or to those that will be incurred tomorrow.

  1. c) Meaning to the institution

The VaR or value at risk model and calculations measures the amount of financial risk that is associated with the total value of a firm. This is not just the interest rate risk associated with its cash flow. The value at risk also shows the amount of maximum potential loss that is within a specified period and with a degree of confidence. This contrary to earnings at risk, value at risk indicates the degree of confidence that a company’s losses will not exceed a certain amount of dollars over a specified period

Question 2

Strategies to manage interest rates and their impact to the banks risk profile

The descriptions below show the strategies that we have developed and come up with that will be used by the institution so as to manage the risks in the changes in the value of the portfolio as a result of the potential future interest rate changes that have been identified in the previous sections of the report.

Whenever the interest rates increase, firms are faced with a more difficult, challenging and potentially critical scenario. They, therefore, have to be smart and come up with strategies that shall ensure that they are well cushioned from the very likely effects that would occur which can include: high attrition, a reputation being at risk, increased portfolio at risk and reduced market share.

Swaps

Interest rate swaps mainly involve the trading of a variable rate loan structure for which one has a fixed rate or the opposite of it. Interest rate swaps and other hedging strategies are strategies which have for a long time provided a way for companies to help manage the potential impact on their loan portfolios of changes that take place on a daily basis on the rates of interests. An interest rate swap represents is a contract between two involved parties so as to exchange a stream of cash flows according to terms decided prior to that. The transaction involves trading costs which are related to two different types of loans; this mainly involves swapping the terms of a floating rate loan for those of a fixed rate loan or the opposite.

Impact of swaps on the Banks risk profile

They lock in a fixed interest rate, taking advantage of a favorable environment and removing interest rate risk as a consideration. This method also reduces current interest expense by swapping for a floating rate that is lower than the fixed rate currently being paid without having to refinance a loan and pay the associated costs. The bank is also able To effectively match interest rate sensitive assets and liabilities. The institution will also be able to diversify financial risks in a loan portfolio by converting a loan portfolio from all fixed or all variable to a very good mix of the two cases. The institution will also be able to change the interest rate composition of a current loan without facing the expense associated with refunding or issuing new debt.

The use of interest rate futures to hedge income gap position

Generally, there usually is a very close relationship that exists between the interest rates and the net interest margin in a way such that any slight fluctuation or change in the market the interest rate will be affected immediately to the margin. The increasing interest rate will lead to a very high net interest rate while the opposite is also true. It therefore becomes a necessity for the bank to buy one or more treasury bills which will be for future delivery.  In the event of a falling interest rate, the following decrease that occurs in net interest margin will definitely be taken care of by the gain that has occurred in the long hedge in a future market scenario in the negative income gap. Together with the long hedge, there is also use of short hedge in order to reduce the interest Rate risk in the negative dollar gap. As the interest rate rises, there is a likelihood that the unhedged bank will suffer significantly the net decline in its net interest margin. A combination of both the short and long hedge, the bank will benefit from future hedge that can be used in order to compensate for the loss in the net interest margin.

The use of option contract

This is a very common strategy that has been applied and tested in many institutions in the institutions ways of managing the risks associated with interest rate risks and can be applicable in the situation of CBC.

In the positive income gap, the investors and other parties involved or interested can buy call option so as to protect themselves from interest rate risks. From buying that option, the buyers can therefore have that ability to obtain the necessary instruments which is at a specific price. While that takes place, the sellers have to have the willingness to sell these instruments at the same price. If therefore the interest rates fall, the bank can lose a lot of cash. However, the gain from its open option position can help in a huge way to partially if not completely offset that loss that has been incurred before. If there is a rise in the interest rates, the gain in the net income will be only partially compensated by the other option.

Coming back to the negative impact income gap case, the investors can buy interest rate put option in order to deal with that risk. This put option will give those buyers the freedom to sell a certain specific underlying security which will be at the price that has been set prior in the contract and makes the seller to be obliged to buy the underlying security. This will automatically make the buyers to earn some profit from that put option and can use it tom compensate for the interest income loss from the negative dollar gap.

The above strategies if adopted will be of great importance to the bank in its future plans since it will have set ways of managing the risks associated with adverse changes in interest rates.

d) Why I recommended the strategies

I came up with the strategies that I have listed below since they have been used and experimented previously by other banks and found to be successful. They have successfully been used to manage the risk in the change in the value of the portfolio as a result of the potential future interest rate changes that have been identified in the previous sections of the report.

 

References

https://privatewealth.usbank.com/insights/managing-interest-rate-risk

Dowd, K., Blake, D. and Cairns, “Long-Term Value at Risk,” The Journal of Risk Finance, Vol. 5, No. 2, 52–57, 2004.

Basel Committee on Banking Supervision, “Interest Rate Risk on the Banking Book,” Basel, June 2015.

Harris, M., “Back testing Your Interest Rate Risk Model,” CFO & Finance Digest, Issue #1, August 2010. Available at http://www.wib.org/publications__resources/cfo__finance_digest/2010–12/augl0/harris.html.