Greed Essay - Enron and Northern Rock Corporate Collapse The WritePass Journal

Greed Essay - Enron and Northern Rock Corporate Collapse Abstract Greed Essay Enron and Northern Rock Corporate Collapse ). Created as a result of a merger between the North East Building Society and the Northern counties Permanent Building Society and the Rock Building Society, the Northern Rock Building Society was in an ideal position to create and further their own business interests. A key area of concern for investors was the fact that Northern Rock derived its capital from depositors until the deregulation efforts of the 1980’s (Marshall et al, 2012). With the relaxation of oversight, it became possible for entities such as Northern Rock to consider and implement alternate solutions for revenue increase that included heavy investment in the stock market and mortgage industry. Complementing the perception of leadership and dedication to the market were statistics that cited Northern Rock as one of the leading mortgage lenders during the period of the early 2000’s (Mclean and Elkind, 2003). With a wish to capitalize as much as possible on the conditions of the growing market, which i ncluded the American mortgage market prior to 2008, Northern Rock leadership opted to invest heavily in the subprime market that generated so much profit during this period (Dawley et al, 2012). This argument suggests that the old industry region that was home to the company’s operations had a direct impact on the initial success and eventual failure of the Ban. This initial overview demonstrates that there was a real drive to produce revenue on the part of both of these companies, which in turn fuelled their need to succeed at any cost. In both cases, Enron and Northern Rock began with a legitimate business foundation, yet desired a continual increase in power and revenue which led to poor decisions and policy implementation. In a very real way, this brief illustration suggests that the success factor prompted these companies to act in the selfish and rash manner that brought about their downfall. 2.2 Companies 2.2.1 Enron The manner in which leadership creates, endorses and implements a company policy is a critical component to any entities day to day operations (O’Connell, 2004). In this case Enron leadership including Ken Lay, Jeffrey Skilling and Andy Fastow were primarily credited with first leading the company to incredible heights, and then engineering the massive failure due to their own incredible greed. Perhaps a leading indicator of the manner of leadership Ken Lay found appealing lay in his continual support of the oil trading company headed by Borget that was deemed acceptable as long as there was a profit, regardless of method (Swartz and Watkins, 2003). Organizational culture built on greed and corruption will continue to breed these same elements throughout any organization (Solomon et al, 2004). In this case Enron leadership’s goal of creating a nature gas stock exchange was driven by the desire to increase market share and revenue. In the beginning this form of innovatio n and aggressive marketing were deemed acceptable, but with subsequent discoveries of accounts including M. Yass, or My ass, created by Borget there was an acknowledgement of corruption (Fox, 2003). Despite Enron initially endorsing Borget and his practices as the scope of the losses mounted, Ken Lay actively denied any wrong doing, taking advantage of the lack of information that he cultivated. The lack of any serious form of financial oversight allowed Enron to create questionable forms of accounting and bookkeeping that extended their perception of propriety (Solomon, 2004). During deregulation effort of the late twentieth century, there was serious contention on the part of the business community that there was a need to reduce regulation in order to benefit the consumer. Leadership at Enron eagerly campaigned on the notion that deregulation would actively increase the capacity for the worker (Swartz et al, 2003). Blaming regulation for higher electricity the lobbyists were largely successful in their drive to remove any meaningful oversight in the industry. This push included a state by state approach that allowed Enron to utilize their regional positions to great advantage, thereby ensuring a smoother experience (Boje et al, 2004). Skilling created concept of an asset lite strategy, or not actually owning the assets, simply bundling and selling the energy, which in turn provided Enron with a potential method to drastically increase revenue with little to no paper trail (Solomon et al, 2014). The summer of 1998 witnessed a bonanza for Enron as there was a perception of volatility that enabled them to drastically capitalize on the market, leading to the perception that Skilling was a genius (Swartz et al, 2003). During this period following deregulation many of the Enron’s greatest profits were made by employees finding loopholes and exploiting these accounting or business practices to the utmost in order to increase revenue (Arnold and Lange, 2005). Again, this policy of attempting to end run regulation only promotes the false ideal that the company or its employees was smarter than the system. Enron has been credited with employing many questionable accounting techniques during their period of operation in order to bolster expectations (Gordon, 2002). This drive to provide a continuous profit for the company led the leadership to adopt accounting practices that did more to obstruct the revelation of negative data in order to maintain profits. A combination of being at the right place in the form of evolving deregulation and belonging to a culture of greed and corruption created the atmosphere that prompted these increasingly poor accounting practices (Macey, 2003). At the heart of Enron’s trouble rests a lack of strong corporate governance and an increasing disregard for public regulation and investor welfare (Vinten, 2002). Beginning with methods that merely bent the rules, the accounting practices at Enron had to become larger in order to account for the burgeoning debt that was being created (Parker, 2005). This form of creative bookkeeping suggests that there was a strong knowledge that operations at the company were not only limited in scope, but there was a need to make as much money as possible at any cost. This form of accounting was illustrated in the Mark to Market accounting expansion that served to misinform investors on accurate valuations, thereby increasing Enron’s value (Shelly, 2011). While essentially legal, the stretching and reinterpretation of the rules allowed Enron to create a wide margin of profit on paper. Further, the use of limited partnership and outside parties increased the level of secrecy and uncert ainty that surrounded every Enron valuation process including the Credit Default Swaps and Collateralised Debt Obligations (Swartz et al, 2010). These measures became necessary in order to provide the company with the means to maintain expectations, bonuses and pensions. From the outset, Enron was out to make money (Jennings, 2002). Each innovation was aimed at delivering the most revenue to the leadership, not the investors. Each decision and example of culture illustrates the greed and ambition of those behind the Enron debacle. In the accounting profession a fair presentation is regarded as an accurate representation of a working operation, creative accounting is identified as flexible practice that best serves the interests of the clients, with fraudulent accounting made up of those that blatantly step outside the law (Buckley, 2011). Enron has displayed an initial fair value accounting method that degenerated into a fraudulent accounting method with evidence that paints a portrait of unrestrained greed, propped up by poor regulation and aided by tacit indulgence of success. There is a clear need to conduct ethical business in order to sustain opportunities (Gill, 2009). This was does not seem to have happened in the case of Enron. This evidence suggests that no matter how Enron had attempted to compensate for poor practice, there could have been no other plausible outcome than failure. 2.2.2 Northern Rock Initially specialising in residential and commercial mortgages Northern Rock quickly became an industry frontrunner under the leadership of Adam Applegarth in 2001(Marshall et al, 2012). This form of leadership actively profited from the prior methods of operation, utilizing the past profit to invest in the present stock market, primarily the growing sector mortgage securities. Linsley and Slack (2013) argue that prior to 2001 Northern Rock projected a ethic of care, which in turn was cited for the intense feelings of betrayal following the collapse of the Bank. There was a sense that leadership of the Bank was overly ambitious in their efforts to capitalize on their existing assets by putting all of the previous savings at risk (Marshall et al, 2012). This suggests that the clientele of Northern Rock expected their leadership to take greater care and substantially less risk. Three primary points including Northern Rocks previous existence as a building society, the local or regional nature of the bank and the appearance of the Northern Rock Foundation bolstered the perception of a caring institution that was out to serve the populace (Linsley, 2013). With the change in policy brought about by a new leader, there was a palpable sense of anger and disillusionment with both Northern Rock and the direction of their investments. It very much seems as if was this effort from the previous eras, the caring and attentive attitude that served to amplify the negativity as the bank began to crumble under the weight of poor leadership and management. With the onset of the subprime collapse in the United States and the massive international recession that followed, it became impossible for Northern Rock to meet its financial obligations, which in turn prompted the failure of the bank (Linsley et al, 2013). The innovative nature of the investment pattern such as the ‘Together’ investment scenario set out by Northern Rock was a stark departure from the mutualisation process of previous eras (Nesvetailova and Palan, 2013). With the ambitious investment goals set out by Applegarth, it became necessary for the bank to move from the 75% per cent income from depositors to a much more modest 25% with the remaining balance being accounted for by investment and loans (Nesvetailova, 2013). As reflected by consumer discontent with the policy decision, the entire process became disliked and heavily blamed for the eventual run on the bank. The new pattern of investment required Northern Rock to pursue securitization in a fashion that created special purpose vehicles in order to allow these securities to become liquid and thereby tradable (Deegan and Unerman, 2011). This process allowed Northern Rock to obscure their accurate worth by essentially hiding these accounts offshore (Scott, 20 08). With an accounting practice that was creative and innovative at the time, Northern Rock utilized this method in order to expand their projected revenues, thereby further enhancing their operations. In order to continue lending at the bank level, mortgages could be sold, or further funds borrowed on the mortgage securities, which in turn kept Northern Rock liquid initially (Gaffikin, 2008). This culture of greed no matter the cost fuelled the leadership drive to not only continue this practice, but expand it to incorporate up to 50 per cent of the Northern Rock operational platform (Deegan et al, 2011). Depending too heavily on any volatile market has the potential to put any operation at risk at any time (Domhoff, 2013). This evidence suggests that Northern Rock was substantially impacted by the subprime mortgage collapse and the inability to borrow money from the lenders. With a business model that was directly dependant on the interbank lending process, this sudden halt of funding was a severe and crippling blow, only enhanced by the need for the bank to have these funds on hand in order to shore up fading public support. The perception of dismay and lack of trust only increased as Northern Rock found itself undercut by rivals with better loan rates (Deegan et al, 2011). With no ready pool of funding available and no one to purchase the securities, some of which were frozen due to questionable value, the internal situation deteriorated to the point of collapse nearly overnight. Regulation and lack of effective constraints in the financial process has been cited as an element of the Northern Rock collapse (Nesvetailova, 2013). There was a sustained feeling that the explosive pattern of growth quickly overwhelmed any regulation effort, which in turn led to unsatisfactory testing and performance assessments. The caring culture that once benefited operations at Northern Rock was transformed to increased discontent with the announcement of the government bailout, which in turn fuelled the run on the bank (Deegan, et al, 2011). This evidence suggests that it was the very elements of safe investment that had given Northern Rock the opportunity for investment initially and that the prudent course of action would have been to maintain a pattern of considerate investment rather than an all-out bid for industry leadership. With the nationalization of the Northern Rock entity, the government became the only remaining investor, shouldering the substantial loss that had once been a thriving multi-generational company (Deegan et al, 2011). 3 Conclusion Both Enron and Northern Rock exhibited similar and distinctly different traits as this study as illustrated. Each of the companies possessed leadership that was very focused on success and revenue. This culture of greed and ambition served to initially propel both companies into positions of leadership which was demonstrated by their drastic increase in value and recognition during the early phases. While both companies began with fair trade accounting methods, there were driving forces behind each entities operation after that period. Enron began to employ outright fraud in their accounting practices, in some cases going so far as to completely create fictional assets in order to maintain viability. In contrast Northern Rock employed creative accounting methods to legally utilize their existing assets to invest in the subprime mortgage market. While Northern Rocks leadership made poor choices, there was no element of blatant fraud as perpetrated by Enron. There was a distinct organisational culture gap between Enron and Northern Rock. The ethic of care environment enacted a perception of interest in the consumers of Northern Rock aided the long term business efforts and sustained operations over generations. Enron was focused on profit and the means to increase profit from the point of inception, creating management techniques that encouraged a liberal interpretation of any regulation, placing revenue generation above the need to present a high level of honesty during operation. A similarity that binds both companies together was the leadership intention to use the open market to increase their net assets. Further, there was a directed action by both management institutions to hide the debt from the consumer and investors in order to prop up their image and brand. Once considered pioneering, creative and innovative the combination of deregulation, massive growth and complex rules provided a wide range of opportunities that these compa nies chose to exploit for their own gain. Each of these entities found itself in the position that required them to borrow money in order to meet expectations. Lacking the means to borrow money was the death knell for both of these enterprises. Northern Rock found itself caught in the subprime mortgage collapse and Enron found itself the focus of scrutiny concerning their assets and true valuation. In the end both Enron and Northern Rock exhibited poor policy decision as well as experiencing bad luck. While there is no guarantee in the business world, large scale deception and fraud will eventually come back to roost. It was the utilization of questionable practice, greed and ambition that served to derail these companies, teaching us all that honesty is indeed the best policy. 4 References Arnold, B. and De Lange, P. 2004. Enron: an examination of agency problems.  Critical Perspectives on Accounting, 15 (6), pp. 751765. Boje, D. M., Rosile, G. A., Durant, R. A. and Luhman, J. T. 2004. Enron spectacles: A critical dramaturgical analysis.  Organization Studies, 25 (5), pp. 751774. Buckley, A. 2011.  Financial crisis. Harlow, England: Financial Times Prentice Hall. Dawley, S., Marshall, N., Pike, A., Pollard, J. and Tomaney, J. 2012. Continuity and evolution in an old industrial region: the labour market dynamics of the rise and fall of Northern Rock.  Regional Studies, (ahead-of-print), pp. 119. Deegan, C. and Unerman, J. 2011. Financial Accounting Theory: European Edition, 2nd Edition, McGraw Hill. New York, NY. Domhoff, G. W. 2013.  The myth of liberal ascendancy. Boulder: Paradigm Publishers. Fox, L. 2003.  Enron. Hoboken, N.J.: Wiley. Gaffikin, M. 2008. Accounting Theory: Research, Regulation and Accounting Practice, Pearson Education. New York, NY. Gill, M. 2009, Accountant’s Truth: Knowledge and Ethics in the Financial World, Oxford, Oxford University Press. 1(1). Gordon, J. N. 2002. What Enron means for the management and control of the modern business corporation: some initial reflections.  The University of Chicago Law Review, 1(1) pp. 12331250. Gordon, R. W. 2002. New Role for Lawyers: The Corporate Counselor after Enron, A.  Conn. L. Rev., 35 p. 1185. Jennings, M. M. 2002. Primer on Enron: Lessons from a Perfect Storm of Financial Reporting, Corporate Governance and Ethical Culture Failures, A.  Cal. WL Rev., 39 p. 163. Khan, M. A. 2011. The Reasons Behind a Corporate Collapse: A Case Study of Enron.Available at SSRN 1923277. Linsley, P. M. and Slack, R. E. 2013. Crisis management and an ethic of care: the case of Northern Rock Bank.  Journal of business ethics, 113 (2), pp. 285295. Macey, J. R. 2003. Efficient capital markets, corporate disclosure, and Enron.  Cornell L. Rev., 89 p. 394. Marshall, J., Pike, A., Pollard, J. S., Tomaney, J., Dawley, S. and Gray, J. 2012. Placing the run on Northern Rock.  Journal of Economic Geography, 12 (1), pp. 157181. Mclean, B. and Elkind, P. 2003.  The smartest guys in the room. New York: Portfolio. Nesvetailova, A. and Palan, R. 2013. Minsky in the Shadows Securitization, Ponzi Finance, and the Crisis of Northern Rock.  Review of Radical Political Economics, 45 (3), pp. 349368. O’Connell, B. T. 2004. Enron. Con:â€Å"He that filches from me my good name†¦ makes me poor indeed†.  Critical Perspectives on Accounting, 15 (6), pp. 733749. Parker, L. D. 2005. Corporate governance crisis down under: post-Enron accounting education and research inertia.  European Accounting Review, 14 (2), pp. 383394. Richardson, S. 2011. From the Invisible Hand to CEO Speak: Enron and a Rhetoric of Corporate Collapse. Russell, D. 2013. Critical Studies on Corporate Responsibility, Governance and Sustainability, Vol. 3Business and Sustainability: Concepts Strategies and Changes.  International Journal of Law and Management, 55 (1), pp. 7476. Scott, W. R. 2008 Financial Accounting Theory, 5th Edition, FT Prentice Hall. Solomon, J. and Solomon, A. 2004.  Corporate governance and accountability. New York: John Wiley. Swartz, M. and Watkins, S. 2003.  Power failure. New York: Doubleday. Vinten, G. 2002. The corporate governance lessons of Enron.  Corporate Governance, 2 (4), pp. 49.

Chrysler Corporation Assignment Example | Topics and Well Written Essays - 750 words

Chrysler Corporation - Assignment Example It serves the market niche- i.e. high-end users that want luxurious cars. It ensures to produce superior products that are highly valued and technically advanced cars. It promises to produce the most fuel efficient, reliable, stylish and safe vehicles for consumers all over the world. Chrysler believes in innovation and creativity, and therefore comes up with new, innovative and technologically advanced vehicles. Chrysler is one of those companies who value their customers a great deal. The second great strength of the company is that it has started to focus greatly on customer care. It is the first auto company to have a Chief Customer Officer. This has generated significant improvement in its customer services and the company has achieved competitive advantage. Their biggest weakness is their poor relationship with their suppliers and dealers. For an organization like this, they strongly have to rely on their suppliers & dealers. They need to work on and build the good relationship with them to ensure a good supply chain. Chrysler’s overall market share is small and declining. According to the Wall Street Journal, 2010 the market share had dropped by 11% from a previous year in 2009 and is now 9.2%. In 2010 the market share was increased to 9.5% which was again not a very significant improvement. Consumers are more interested in fuel efficient, environmentally friendly and innovative automobiles. The demand for greener vehicles is increasing and consumers are becoming more conscious about the environment they live in. It is expected that the market for green cars is going to be 55% by the year 2015. Although Chrysler’s strong points are minivans and SUVs, a partnership with Fiat has created opportunities for the company to penetrate in South American and Asian markets by producing smaller cars.

Comprehensive Emergency Plan for Ashford University Essay

Comprehensive Emergency Plan for Ashford University - Essay Example This report is aimed at developing a comprehensive emergency plan in preparation for natural disasters at Ashford University’s main campus, including incidences of flooding, tornadoes and heavy storms (Continuity of Government & Continuity of Operations, 2003). Each crisis or emergency requires a different type of response. For instance, if there is a bomb threat, it may be necessary to shelter people in place, whereas evacuating the building will be appropriate for other situations like a tornado warning (U.S. Department of Homeland Security). This will ensure that the campus is prepared for the event of a disaster, and analyze the potential responses to the occurrence of such an event. The purpose of this emergency plan is the management of major emergencies and crises in the advent of such occurrences, so as to ensure that major crises and emergencies are handled in an organized way. This emergency action plan is aimed at protecting the Ashford University employees from serious injury, loss of property or life in the event of an actual or potential major disaster. Such situations may include the event of a fire, a bomb threat, earthquake, tornado or a hazardous chemical spill. This emergency action plan will describe the initial routes of action for protection of students and employees and those responsible for the implementation of those actions within the university. This plan is an all-risk emergency plan for addressing disaster and crisis management, and will integrate the various departments of the university and other resources in a coordinated response effort to manage or reduce any loss of life and property through the provision periodic emergency respons e capability tests. It is also necessary to ensure the effective utilization of resources and the minimization of any disruptions in school activities and of programs. It is a fact that preparation for emergencies will ensure a higher margin of safety if a crisis or

Little Women by Louisa May Alcott Essay Example for Free

Little Women by Louisa May Alcott Essay Little Women, written by Louisa May Alcott, is a novel based on a family of four girls, Margaret Meg March, Josephine Jo March, Beth March, and Amy March, and of their family values. Little Women demonstrates strong events based on several family values. The story of the March family is set in New England during the civil war. Throughout this point in time the little women are to survive with out a father figure, as their father has gone to fight in the war. Over long periods of time, the four March sisters had to face the fact that they were very poor and could not receive every thing that they wished for. As the March family stayed home awaiting the return of their father, they were very lucky to receive the fatherly support from an old, wealthy neighbour, Mr Laurence. Overtime the girls formed a tight bond with Mr Laurence and his grandson Laurie. As the March family continues through the hard times in life, they are blessed by the friendship of family and friends. In the Novel the four sisters show that they are very unselfish and are capable of sharing what little things they have with others. Even though the girls realise (Amy especially) that they are suffering poverty and are not able to receive everything that they wish, they are very grateful for what they have. The March sisters tend not to make a fuss mainly because whilst their father is away life gets tough with only a mother figure around. Not far away from here lies a poor old woman with a little new born baby. Six children are huddled into one bed to keep from freezing, for they have no fire. There is nothing to eat over there; and the oldest boy came to tell me they were suffering hunger and cold. My girls, will you give them your breakfast as a Christmas present? pg 20 In the chapter A merry Christmas this here is a great example of how generous the March family is even though the have so little themselves. The girls were very disappointed to give their food away but knew that there was a family suffering severely without any food, so they decided to the right thing. In Little women the four March sisters show loyalty by looking out for each other. Through the hardest times in life the girls manage to stick by each other and along the way on their journey they learn from their mistakes. Meg, Jo, Beth and Amy are not your everyday type of sisters who may fight a lot with one another. The girls infrequently have fights because they are so alike, they are so kind to one another and share anything they have for that is all that they do have. I let the sun go down on my anger; I wouldnt forgive her, and today, if it hadnt been for Laurie it might have been too late! How could I be so wicked? said Jo half aloud, as she leaned over her sister, softly stroking the wet hair scattered on the pillow. As if she heard, Amy opened her eyes, and held out her arms, with a smile that went straight to Jos heart. Page 115. Even though the girls make mistakes they learn from them and are persistent never to make that same mistake again. Through out the novel looking out for each other is a true family value and by doing this the girls manage through life a lot easier. Life becomes more interesting when family and friends are together. Its not until later on in life when the March girls realise that their next door neighbours are not close and that they ought to become neighbourly with one another. It is here in the novel where all the sisters begin to loosen up and enjoy the new company of the Laurence boy. At first the girls are a bit timid because they are embarrassed by the fact that they are so much poorer to Laurie, but after first impressions the girls really begin to bond with Laurie and they form a tight friendship. We are not strangers, we are neighbours, and you neednt think youd be a bother. We want to know you, and Ive been trying to do this ever so long. Page 70.Through the novel it is important to be able to have the love and support of friends and family so that it makes life easier through the difficult and depressing patches. In conclusion Marmee only wants best for her girls, but in her eyes this does not mean the wealthiest man that the girls can get their hands on this means, happiness and security from the one they tend to spend their rest of their lives with. Money is a needful and precious thing,-and, when well used, a noble thing,-but I never want you to think it is the first or only prize to strive for. Id rather see you poor mens wives, if you were happy, beloved, contented, than queens on thrones, without self- respect and peace. If along the way the girls did not have one another and there values then Meg, Jo, Beth and Amy would struggle more then what they already do. Through out the novel family values are very important and are expressed in many ways, not only through family but close friends too. The March sisters go through life with the love and support of each other and share an amazing journey.

Varying Patterns of Speciation Essay -- Wallaces Line Plate Tectonics

Varying Patterns of Speciation Wallace’s line, located in the Malay-Archipelago, is one of the best known and most studied boundaries of zoogeography in the world. It is a transition zone between the islands of Borneo and Sulawesi and the islands of Bali and Lombork, which marks both the convergence and division of the diverse flora and fauna found in the Asian (Borneo, The Philippines, and Western Indonesia), and the Australian regions (Sulawesi, Eastern Indonesia, Australia, and New Guinea) (Schulte 2003). The hypothetical line was first proposed by Alfred Russel Wallace in 1858 after observing many morphological differences of various bird species in the Asian and Australian regions (Raven 1935). In the past, to confirm the placement of Wallace’s hypothetical line, researchers have applied the theories of plate tectonics and continental drift in order to create geographical reconstructions of land masses. From this information, researchers were able to substantiate a majority of the boundaries of the originally drawn line. Presently, however, due to the enigmas found on the island of Sulawesi, a portion of the line between Borneo and Sulawesi (Celebes) still remains uncertain (Whitmore 1981). Researchers have identified two genera that contradict the location of the line: the macaque monkey (Macaca species) and the Sulawesi toad (Bufa celebensis) (Evans et al. 1998). Whereas geographical phenomena such as tectonic plate shifts, rising and falling sea levels, and climatic fluctuations have caused the morphology of the Sulawesi toad to remain fairly undifferentiated, the ancestral macaque monkeys have evolved into seven distinct endemic species. The zoogeography on the eastern and western sides of Wallace’s line... ...esi. Evolution. 57:6:1436-1443. Evans, Ben J., Juan Carlos Morales, Jatna Supriatna, and Don J. Melnick. 1998. Origin of the Sulawesi Macaques (Cercopithecidae: Macaca) as Suggested by mitochondrial DNA phylogeny. Biological Journal of the Linnean Society. 66:539-560. Michaux, B. Land Movements and animal distributions in east Wallacea (eastern Indonesia, Papua New Guinea and Melanesia). Palaeogeography, Palaeoclimatology, Palaeoecology. 112:323-343. Raven, Henry C. 1935. Wallace’s Line and the Distribution of Indo-Australian Mammals. New York. Schulte, James A. II. Jane Melville, and Allan Larson. 2003. Molecular phylogenetic evidence for ancient divergence of lizard taxa on either side of Wallace’s Line. The Royal Society. 270:597-603. Whitmore, T.C. 1981. Wallace’s Line and Plate Tectonics. Clarendon Press. Oxford University Press, New York.

Project Scope and Charter Essay

The first phase of any project is the initiation phase. This phase commences when some type of business issue or opportunity is identified bringing about a proposal project to solve or address the issue or opportunity. The main deliverable of this phase is the project charter, which contains a broad view of what the project is about, who is involved, why the project is being conducted and how & when the project will be carried out. (Hughes Lecture, 2013) Once the charter is approved the project can move into the planning phase, which is where the charter is used to identify the scope of the project. This paper will examine the relationship between project scope and charter and highlight the benefits of each. Project Charter The project charter is a short document that serves as an informal contract between the project team and the sponsor of the project. (Kloppenberg, 2012, pg 84) This document contains only enough detail to get the project approved so it can move into the planning phase. Project Management Professional, Ritchie Hughes describes the charter as a representation of the â€Å"view from 3000 meters†. The project charter is usually drawn up by the Project Manager and team, or, in instances where a Project Manager has not yet been assigned, the project sponsor will complete the charter. Hughes explains that the functions of the â€Å"why† section of the charter are to ensure: the correct individuals will be consulted (e.g. stakeholders and governance), projects that are linked or dependent on the project in question are identified, the organization has enough resources (internally or externally) to complete the project, a business case for the organization is conveyed and that all the information is provided to support the executive team. (Hughes Lecture, 2013) Approval of the charter grants authority to the project manager to go through with the project and utilize the allotted budget or resources for the project activity. As the charter approval is the â€Å"Go/No Go† decision for the project, a non-approval means termination of the project. (Hughes Lecture, 2013) Scope Approval of the project charter signifies the transition into the planning phase of the project. A critical part of the planning phase is identifying the scope of the project. Project scope is defined as â€Å"the work that must be performed to deliver a product, service, or result with the specified features and functions.† (Kloppenberg, 2012, pg. 142) Ritchie Hughes explained that scope can also mean â€Å"the sum of products, services and results to be provided as a project.† The benefits of scope are that the work to be performed is clarified, listed and any work not to be completed (outside the project’s scope) is identified. Scope is also a useful tool in managing expectations and avoiding assumptions among stakeholders and the project team. (Hughes Lecture, 2013) Scope Creep A common issue when managing a project’s scope is dealing with scope creep. Scope creep can be defined as â€Å"the extra deliverables that can creep into a project.† (Collegiate Projects, 2013, pg. 1) These â€Å"project improvements† can be very hard to avoid but may have a major effect on the project’s budget, timing or quality. Projects that may be susceptible to scope creep should have a scope change management plan that contains: a definition of scope change for the project, a process for submitting and reviewing scope changes, documentation needed for the change process and a tool to track change requests and their resolutions. (Collegiate Projects, 2013, pg. 2,3) An understanding by both parties (project team and sponsor) of scope creep and its effects on the project, and an organized management plan will help avoid scope creep that may negatively affect the project’s success. Conclusion In the early stages of project management, two very important aspects are the project charter and scope of the project. Not all projects need a charter but understanding and managing the scope of a project will help the project team effectively complete the project in time and budget without â€Å"Gold Plating†. References Kloppenborg, T. J. (2012). Contemporary project management: organize, plan, perform (2nd ed.). Mason, Ohio: South-Western Cengage Learning. (2013). Managing Scope Creep. Collegiate Project Services, 1, 1-3. Hughes, R. (Director) (2013, January 31). Project Initiation: Scope & Charters. Bus 427. Lecture conducted from Tom Rippon, Victoria.

Gilgamesh And Odysseus Similarities - 882 Words

Gilgamesh was one of the most important characters in â€Å"The Epic of Gilgamesh.† Gilgamesh is considered to be one of the most essential stories because one of the tales mentioned is from the bible, Noah and the flood. Gilgamesh was the king of Uruk, he lived to be 2700 B.C. Gilgamesh was considered to be very conceited in the eyes of the Gods, the Gods then sent the famous Enkidu to degrade him. Gilgamesh was developed in early Mesopotamia. The main theme of the tale was to show the king’s desire for glory, immortality, and fame, through heroic actions. Odysseus was a Greek king of Ithaca. He was best known for being the greatest eponymous hero of the Odyssey, which described his hardships as he struggles to return home from the Trojan†¦show more content†¦Mesopotamian and Greeks are both popular for their anecdotes of a variety of gods and how it they sometimes dictate people’s destiny. Mesopotamians mainly believed in a polytheistic system, believing in more than one god and/or goddesses. The heroes from the Mesopotamian had a different ways of their leaderships and their purpose in life. Gilgamesh had a more, broader connection with them when compared with Odysseus. Religion played a major role with the Mesopotamians because it was their main focus and that’s what mattered to them the most, as well as leadership. Mesopotamians aspirations in life was to just focus on their culture and protect everything that they had. The Mesopotamians were more classified as being the uptight culture, the leaders and the p eople completed every order they were told to do, mainly Gilgamesh who was very haughty. Greeks, however, believed in showing and giving their people courtesy. The Greeks who were more, friendly based, when looking at the Mesopotamians, showed generosity, which was one of the many things that made their culture and people connect together. The Greeks were able to interact with other regions and with people from different cultures, this helped them in being able to travel around. Mesopotamians believed more in staying in your own lane, focusing on your culture and yourself. The Greeks believed in giving and receiving, having respect, and to move from locationShow MoreRelatedEssay about Comparing The Epic of Gilgamesh with The Odyssey1262 Words   |  6 Pages The Epic of Gilgamesh and The Odyssey both are held in high respect by literature analysts and historians alike for the characterization of the hero and his companion, the imagery brought to mind when one of them is read, and the impressive length in relation to the time period it was written in. The similarities that these two epics share do not end with only those three; in fact, the comparability of these works extend to even the information on the author and the archetypes used. 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