Bloomberg Essentials Online Training Program Essay Example for Free

Bloomberg Essentials Online Training Program Essay Hello, and welcome to the equity session of the Bloomberg Essentials Online Training Program. My name is Rosie Genao, and the goal of this training session is to get you acclimated with our equity functionality so you can quickly and easily navigate through the tools that will be vital for your daily investment analysis. I will start with key news functions that will keep you up-to-speed with headlines that can affect your investment strategies, as well as the equities markets on the whole. From there, we will walk through functionality that will help you quickly assess the trends of the equities markets. Finally, we will focus on how you can best use Bloomberg for investment idea generation and in-depth security analysis. Our equities resources fully integrate the very best in real-time data, news and research, providing you with an unmatched level of market data transparency, dynamic monitors, and powerful analytics. With these tools, you can delve into more than 20 years of financial statements, sell-side consensus estimates, extensive technical analysis studies, and idea generation tools for a pool of more than 410,000 equities (ph). As the Bloomberg Essentials news video outlines, Ngo, which is located in 15 company news, is the main news function and platform for real-time news from tens of thousands of sources, including Bloomberg. It has the most important, most popular, and most recent news across any category. This page will automatically update throughout the day so you can stay abreast of news that impacts the markets and your portfolio. For the equity space, you can customize this page to display news specific to the equities markets simply by navigating to the left sidebar, which includes an array of topics and securities, and clicking on stocks. When you click on stocks, you will see the right hand side populate with the relevant news for stocks in the Americas or anywhere across the world. Once you click on stocks on the left hand side, you can select this particular topic as your default simply by clicking on 90 go to save as default at the very top. Notice also that you can use this same sidebar on the left to click into other topics, such as technology or featured news articles that we have on the terminal, such as on European debt. Also note that whenever you see a small B icon next to any article, this means that this is a Bloomberg exclusive story, while the white highlights or indicates that the story has been posted to the system in the last 15 minutes. Another crucial aspect of news functionality is the ability to mine for news and press releases that directly impact a particular investment strategy. You can run NSEgo at the very top, and you will see a drop-down menu appear which will allow you to select the first function, which is news search. NSE provides unmatched granularity for sector, region, or security-specific news. NSE allows you to search through Bloomberg’s extensive database of news by a simple word search. To make your search within NSE as efficient as possible, the function includes auto complete predictive text, which will come up when typing in your search criteria. For example, let’s say we’re looking into a search for IBM. If I were to type IBM, you will see that an entire listing will appear in the drop-down menu where the company itself appears first. As you type in your news search topic, the function provides you with a list of relevant results which you then can result from. This saves you time in putting together applicable news searches. I’d also like to point out that within NSE, you have the option of running a basis or an advanced search, which you can select at the top. With the advanced search, not only can you filter by keywords, but you can also filter on entire ticket lists, topics, people, among other. For example, let’s create a custom news wire that tracks earning news on companies in India. I’ll start with the criteria of earnings. Using the amber search box at the top of the page, I’ll start by simply typing in the keyword itself, earnings. And when I do that, again, you’ll see that the topic itself appears. When you select on earnings, the bottom part of the screen will allow you to start previewing some of the results that are related to earnings. I’ll go back to my search at the top and input India because I’d like to filter for earnings news within India. And when I do that, again, as you can see, you’ll see India appear at the very top. As you continue to add criteria, the results will continue to update at the bottom under preview results. There are other ways on the terminal to find what you need specifically with news. There are pre-set news monitors on the terminal that you can use to get stories as they are released within a specific topic. For example, going along with our example of earnings, if you’re interested in news related to earnings in general, you can run NI ERN. And what that will do is select or pull up a scrolling news monitor of news only on earnings. These pre-set news monitors, as you saw, start with NI and are streaming in real time. The news articles will appear and will flash as the stories come in. As you can see, from here you can further refine the search to meet your specific investment analysis criteria. You can either click on 97 actions at the very top and edit the search, or you can simply add additional keywords in the narrow search box. Bloomberg also provides direct access to sell side and independent research from over 1,500 sources within our research search engine RSEgo. With RSEgo, you have real-time delivery of reports. That ensures that you are getting the information as soon as it is available. With RSE, you have the option of selecting news research articles by category, sector, or simply all research that is available. In the top left corner, you can also filter further. You can select all research or you can select specific filters in the – within the drop-down menu that allows you to choose, for example, between an equity index or perhaps a portfolio that you may already have loaded on the terminal. After exploring the ways in which you can keep up-to-speed with the news and research that affects both the broad markets and your investments, I’d like to move into functionality that will give you a solid grasp of overall market movement and assist you with investment analysis. We’ll start with EVTS. EVTS is Bloomberg’s corporate event and transcript resource, tracking over 100,000 events and transcribing over 25,000 conference calls a year. Coverage includes earnings releases, earnings calls, sales results, shareholder meetings, investor conferences, MA calls, and other relevant company events. Coverage also includes live transcription of calls as they happen, corrected PDF versions of the call, summary reports, and links to webcasts and archived audio. At the top of the screen, you’ll be able to customize a number of things. You’ll be able to select the source from which you want to pull in specific company-related releases. So for example, you can click on source, and let’s select an equity index. For our example, we’ll select the SP, which is SPX. You’ll see that you have the ability to customize the data range. You can select it to now, next seven days, or you can customize further. Once you’re done customizing, at the very top you can press the go key and you will see a list populate at the bottom with the relevant event types pertaining to the source and the particular date range. While you have the ability to export these events into your Outlook calendar simply by clicking into any one of these icons on the far right column, keep in mind that you can also click into each event for links to other analytics, including pages on earnings analysis, fundamental data, research reports, and company news. Once you select an event, which I’ve just done, you can click on analysis in the top left corner to display and analyze a number of – of related analyses that you can continue to run on that particular security. For our example, you can select earnings analysis. In this example, we selected the SP as our security poll. From there, you’ll be able to, depending on the tab that you are on, you can drill down further into each of the sectors comprising the index. As you click into a particular sector, you’re able to drill down further for performance to not only see how the sub-sectors are performing, but also how the securities within these sub-sectors are performing and how they correlate to the overall earnings analysis. You can review on the terminal for investment ideas by screening for stocks in these sectors (ph) using our equity screening function, EQSgo. EQSgo is the Bloomberg equities screening application that allows you to search for securities based on your defined criteria from a broad set of underlying data. The interface used for this tool offers full transparency at every step of the screening process. You can now identify investment ideas with advanced analytical functionality. Before we go into a sample screen, I’d also like to point out that there are three main tabs at the bottom. One, where you can build and edit your screen, two, where you can access the screens that you have already created and saved, and three, example screens where you can access screens already created by Bloomberg for customers like you. So let’s start with the 91 build/edit screen. For a quick example, if we want to search for all companies trading below their cash and equivalence in the materials sector, we can start by searching for our sector by simply typing materials in the amber box in the middle of the page. As I type materials, you’ll see that the drop-down menu updates and allows you to essentially filter for all the materials-related fields that we have. So let’s select the first option, which is materials. The more you type, the further it narrows your choices. So let’s go ahead and select and input our second criteria. Next, for the fundamental criteria, I will search for market cap, again, in the amber field. Select the appropriate field, which in this case is the first one. Select, when prompted, whether I want to view whether it’s greater than, less than, et cetera. In this case, I will select less than. And in the third amber box that eventually appears, I will type in cash to find the field that I am looking for. I will use the default, latest filing, and press go. Now you’ll notice under selected screening criteria that at the bottom you’ll see the number of securities that meet both criterias that I input. You’ll see the exact number in the bottom right. If you have a specific fundamental or technical-based ratio that you’d like to use but it’s not currently available in our list of fields, you can use the formula tab located at the top to create a custom field for use in your screen. This provides full flexibility in your search. Keep in mind that you can also add criteria using the universe criteria given at the very top. This includes full product segmentation and allows you to search for specific revenue drivers. After you finish selecting all of the criteria, you can click on results in the lower right. All of the securities that match will appear in a list with a list of comparable columns. This will include any numerical values from your search criteria. You can also add columns to this view using the amber field above, or also by clicking on fields in the top right. Once you have your securities listed, you can then click into each of them for links to further analysis with the description page. You’ll see not only the description page, but also related functionality for further analysis. So let’s click into company description, the second option. On the description page, you’ll see that the market information for the selected security appears at the top of the screen. Just below that, you’ll find a snapshot of stock data with links to further analysis regarding the profile of the company, issue information, ratios, and revenue and EPS. With this particular page, you can click into any one of the functionalities that’s highlighted to be taken to another page on the terminal for additional analysis. Also, at the top, you’ll be able to click on the report feature, which allows you to create your own snapshot of the company on your screen, and allows you to print it for your Japanese security. To continue your security-specific analysis, Bloomberg offers a wide range of graphing functionality. To start, you can quickly view the historic movement of a stock on GPgo. GP displays historical closing prices for a selected security, which you can see in the upper left, but also features a wide range of customization options. At the top, you’ll see a gray taskbar that allows you to quickly jump between periods, also add annotation, news and zoom (ph). Sorry, I didn’t even go – also, in the upper right, you have the option to add additional securities or studies for your graph, as well as events. If you click into events, for example, you’ll be able to see that you can add events such as acquisitions, dividends, earnings, et cetera, so that you can easily plot them on your graph. To view the underlying end-of-day pricing for this particular security, you can either scroll down one page, or you can simply run the function HPgo for historical pricing. Historical pricing on HP allows you to customize the data range, the currency, and the period at the very top of the page. If you’re interested in further analysis using technical studies, you can continue your graphical analysis of the security by running Graphgo at the top. This function provides you with a number of things. In the top left, you’ll be able to see the chart of the day. Lower left, you’ll be able to create a series of custom charts. To the right of that, we have sample G (ph) charts that already display some of our technical studies and provide you with examples on each of these studies. And in the upper right, you’ll have a number of chart resources that you can use to become more informed on technical studies and charts features on the terminal. Finally, in the lower right, you’ll be able to see the chart showcase of the day displaying essentially why a particular study would be important to view on the terminal. After viewing where a specific security has priced using our chart functionality, you can then switch over to get a fundamental picture of the overall company by running FAgo. FAgo is a dynamic and interactive fundamental analysis tool that displays the financial history of a specific company with full transparency to the financial statements. Here you can identify trends and analyze the value of a potential investment using the statements themselves, as well as comparative techniques and custom templates that allow you to access the data you need quickly in order to make an informed decision on an investment opportunity. The FAgo screen initially wakes up to the key stats tab located in the upper left. But as you can see, there are a series of tabs locates at the top that you can click into and which allow you to drill down further. So for example, clicking on the income statement, you will see that it has a series of sub-tabs as well. To suit your preferences, you can also click on the settings tab at the very top, and this will allow you to adjust your settings whenever you popular or run this particular function. One of the key benefits of the FAgo screen is the full transparency it offers into the numbers. For example, if you’d like to view the statement for which we have obtained a specific data point, simply click into the line item. So let’s say for example that we’d like to click into revenue for Apple. When you do that, you’ll be able to see exactly where we sourced our information from. You can click into the particular line item itself, drill down further, and on the right hand side, you’ll see two icons – two document icons which when clicked on allow you to view the source document itself and highlighted exactly where we got the information from. Let’s close out of this and go back to the main page on FA. You will see a number of things here. You’ll see that estimates, denoted by the letters EST, are included alongside historical data. You can click into any one of these estimates by view consensus estimates from sell-side analysts. This gives you a clear view of where the company has been and where it’s expected to go. Depending on your analysis, you’ll find it very easy to run a specific analysis based on ratios, which you’ll see located at the top, valuations, segments, or additional information with the tabs at the top. Each of these tabs, specifically the additional tab, pulls in the relevant key measures for that industry. With this insight into estimates, we can continue our equity research with the earnings estimate on EEOgo. Here on EEO, we aggregate all earnings estimates for a company in one place so you can quickly gauge market expectations on an investment opportunity. From this page, you’ll see a number of things. Starting at the very top, you’ll have the option to adjust the reporting period, as well as the consensus type and currency. Also from this page, you can customize your settings and set alerts for earnings data, for consensus date that you are interested in for this particular security. This will allow you to stay up-to-speed with any estimate shifts for a particular company. Here in this page we’re looking at consensus estimates which represent a consensus value for each measure based on reported sell-side expectations. Alongside each estimate, which is listed on the left hand side, you’ll see – or you will find the number of estimates received per measure. Whenever you hover over the exact estimate numbers, you’ll be able to see – or this will give you additional information, such as the number of analysts who revised the estimate itself, and other key information. If we click into a specific measure, you can get even more clarity on that figure. From here, you’ll see a breakdown in three main parts. In the top left, you’ll see a quick summary of the consensus data itself. To the right of that, you’ll see the historical values of the consensus data as plotted by the analysts. And just below that, you’ll see a breakdown of all of the analysts who contributed to the consensus. On the left hand side, you’ll be able to see or you’ll be able to click into the research provided by this particular analysis covering the security. And to the far right, you’ll be able to access a graph that allows you to view the analyst estimates historically alongside the price of the particular security that you are – that you are researching. So on one graph you have both the price and the historical estimates or the historical consensus estimates for that particular security. Let’s menu back to the consensus detail screen. And to go into further detail into the area in the top left, the consensus rating at the top is based on the analyst recommendations that are compiled by Bloomberg reporters and researchers around the world. ANR allows you to determine the latest analyst sentiment and identify which analysts have the most accurate equity rating. Another dynamic tool for analyst research is the function ANRgo. This is the home page for analyst recommendations. Here you will see a listing of the analyst recommendations, their price targets, price target time periods, and a consensus rating for a selected equity, which you’ll see in the upper left corner. Here as well, similar to the consensus estimates, you’ll also see a graph in the right hand side to view historical recommendations. At the top, the consensus ranking is based on analyst recommendations. They are compiled by Bloomberg reporters and researchers around the world. This page allows you to determine the latest analyst sentiment and identify which analysts have the most accurate equity rating. Bloomberg assigns a numerical value from one to five for every recommendation, where five represents a buy. In this example, sentiment on Apple appears to be a buy. You’ll see that there are more buys than holds and sells. This can also be seen in the consensus rating located right here in the top (inaudible). Now let’s take a look at the analyst recommendations. In the table at the bottom of the screen, you’ll be able to see that there is a column called BAR. This is the Bloomberg absolute return risk, which essentially highlights those analysts that have returned the most in terms of total return for this particular security. Let’s locate the analyst who has – who has returned the most for Apple. If we scroll down, you’ll be able to see that the analyst from BTIG was ranked first in terms of BAR. To the far right, you’ll be able to see a graph with that particular analyst – you’ll be able to see that this particular analyst for the duration that – for the amount of time that they’ve covered this security, they have excelled in terms of their recommendations. Now that we’ve seen charts, fundamentals, and earnings on a company, I’d like to continue our review of the core equity functionality with a peer analysis tool called relative value, or RVgo. You can use RV to perform a customized peer group analysis so that you can benchmark your security’s performance for capital structure against its peers. Once you are on the relative valuation screen, you’ll see three main sections. In the top left, you’ll be able to see how this particular security ranks across a number of sectors. To the right of that, you’ll key metrics for that particular security in comparison to its peers, to the median for its peers. Just below that, you’ll see the main portion of this screen, which is divided into several tabs. It initially wakes to an overview tab, which is the overview template, but you also have the option of clicking into the other templates that allow you to analyze the security or compare the security in different ways, such as the markets template and the EPS preview template. One great feature about the relative value function is that you can create your own custom template. And from there, you can enter the fields that are most relevant for you, as well as the securities that you would like to compare your main security against. Another peer comparative tool, PPC, complements this analysis. Let’s run PPCgo and you’ll see what I mean. With PPC, you’ll be able to take a different look at how companies fare against their peers by comparing them across product segments. It allows you to perform an in-depth analysis of company revenue by introducing the sector classification that you see on the left hand side, and the hierarchy that allows you to compare, depending on which sector you select, the key measures on the sidebar. On this screen, you’ll be able to select the classification for which you’d like to sort the security by. For example, VIX, GX (ph), or any of the ones listed below. You can also filter by the currency on the right hand side, and finally, by the industry to the right. From here, you will see the hierarchy located on the left sidebar. You can select any measure from the hierarchy sidebar. And then, let’s say for example you click into music download sites for Apple, and on the right side you’ll be able to see the company’s competitors within each product. This adds yet another layer of analysis into data collected through the financial statements to help you make an informed investment decision. You can also click into the numbers under the hierarchy section in order to view more transparency data, similar to what you can do with FA. This covers the basic equity overview on the Bloomberg terminal. The functions we went over today in news, broad market indicators, and security-specific analysis tools are just an introduction to the vast resources we have for you to make informed investment decisions. If you have any further questions, remember that you can hit the help key twice for 24-hour assistance with (inaudible) for future training opportunities. Thank you for your participation in Bloomberg Essentials.

Metformin (Glucophage) Reactions

Metformin (Glucophage) Reactions Metformin (Glucophage) is available in the Pakistan since 1998. It falls in the same drug class as phenformin. Metformin is considered a first line agent and is significantly useful in people with known insulin resistance GLUCOPHAGE ® (metformin hydrochloride tablets) and GLUCOPHAGE ® XR (metformin hydrochloride extended-release tablets) are oral antihyperglycemic drugs used in the management of type 2 diabetes. Metformin hydrochloride (N,N-dimethylimidodicarbonimidic diamide hydrochloride) is not chemically or pharmacologically related to any other classes of oral antihyperglycemic agents. The structural formula is as shown: Glucophage (metformin hydrochloride tablets) Structural Formula Illustration Metformin hydrochloride is a white to off-white crystalline compound with a molecular formula of C4H11N5 †¢ HCl and a molecular weight of 165.63. Metformin improves hyperglycemia primarily through its suppression of hepatic glucose production, especially hepatic gluconeogenesis[1]. The average person with type 2 diabetes has three times the normal rate of gluconeogenesis; metformin treatment reduces this by over one third.[2] Metformin activates AMP-activated protein kinase (AMPK), a liver enzyme that plays an important role in insulin signaling, whole body energy balance, and the metabolism of glucose and fats;[3] activation of AMPK is required for metformins inhibitory effect on the production of glucose by liver cells.[4] Research published in 2008 further elucidated metformins mechanism of action, showing that activation of AMPK is required for an increase in the expression of SHP (Small heterodimer partner), which in turn inhibits the expression of the hepatic gluconeogenic genes PEPCK and Glc-6-Pase.[5] Metformin is frequently used in research along with AICAR as an AMPK agonist. The mechanism by which biguanides increas e the activity of AMPK remains uncertain; however, research suggests that metformin increases the amount of cytosolic AMP (as opposed to a change in total AMP or total AMP/ATP).[6] In addition to suppressing hepatic glucose production, metformin increases insulin sensitivity, enhances peripheral glucose uptake, decreases fatty acid oxidation, and decreases absorption of glucose from the gastrointestinal tract.[8] Increased peripheral utilization of glucose may be due to improved insulin binding to insulin receptors.[9] AMPK probably also plays a role, as metformin administration increases AMPK activity in skeletal muscle.[10] AMPK is known to cause GLUT4 translocation, resulting in insulin-independent glucose uptake. Some metabolic actions of metformin do appear to occur by AMPK-independent mechanisms; a recent study found that the metabolic actions of metformin in the heart muscle can occur independent of changes in AMPK activity and may be mediated by p38 MAPK- and PKC-dependent mechanisms.[11] Metformin causes a few gastrointestinal side effects including nausea, metallic taste, diarrhea and abdominal discomfort[7] . These can be avoided if the dose is increased slowly, and taking the drug with meals. A small amount of weight loss, possibly due to drop in net caloric intake due to appetite repression and/or a reduction in hyperinsulinemia is suggested. Falling in the same drug class as phenformin, the reported incidence of lactic acidosis is surprisingly low, 0.03 per 1000. In a US double-blind clinical study of GLUCOPHAGE in patients with type 2 diabetes, a total of 141 patients received GLUCOPHAGE therapy (up to 2550 mg per day) and 145 patients received placebo. Most Common Adverse Reactions (>5.0 Percent) in a Placebo-Controlled Clinical Study of GLUCOPHAGE Monotherapy The occurrence can further be avoided if contraindications are followed. It is contraindicated in people with a high risk of lactic acidosis: renal serum creatinine levels over 150 ÃŽ ¼mol/l[14}or hepatic impairment, respiratory insufficiency, severe infection and alcohol abuse. Any pharmacological therapy that alters either of the factors mentioned before is also considered. It should also be used cautiously in elderly especially those above 80 years of age. It is recommended to monitor renal function upon initiation and at least once a year thereafter. It should be withheld immediately before a person has a procedure with a radiocontrast dye, as the dye increases the risk of renal failure and therefore lactic acidosis [15] [16]. It should also be discontinued before and surgery and can be started immediately after if the renal function is normal and the patient is stable. It is also recommended to monitor hematological parameters as it alters vitamin B12 absorption [12] [13] and therefore cause anemia (7% in clinical trials). The mechanism of action is unknown but can be reversed by discontinuation of the drug. Daily dosage should be 500 mg orally twice daily with meals. The dose can be increased every 2 weeks to 2000 mg daily. References Kirpichnikov D, McFarlane SI, Sowers JR (2002). Metformin: an update. Ann Intern Med 137 (1): 25-33. PMID 12093242. Hundal R, Krssak M, Dufour S, Laurent D, Lebon V, Chandramouli V, Inzucchi S, Schumann W, Petersen K, Landau B, Shulman G (2000). Mechanism by which metformin reduces glucose production in type 2 diabetes (PDF). Diabetes 49 (12): 2063-9. doi:10.2337/diabetes.49.12.2063. PMID 11118008. Towler MC, Hardie DG (2007). AMP-activated protein kinase in metabolic control and insulin signaling. Circ Res 100 (3): 328-41. doi:10.1161/01.RES.0000256090.42690.05. PMID 17307971. Zhou G, Myers R, Li Y, Chen Y, Shen X, Fenyk-Melody J, Wu M, Ventre J, Doebber T, Fujii N, Musi N, Hirshman M, Goodyear L, Moller D (2001). Role of AMP-activated protein kinase in mechanism of metformin action. J Clin Invest 108 (8): 1167-74. doi:10.1172/JCI13505. PMID 11602624. Kim YD, Park KG, Lee YS, et al. (2008). Metformin inhibits hepatic gluconeogenesis through AMP-activated protein kinase-dependent regulation of the orphan nuclear receptor SHP. Diabetes 57 (2): 306-14. doi:10.2337/db07-0381. PMID 17909097. Zhang L, He H, Balschi JA (2007). Metformin and phenformin activate AMP-activated protein kinase in the heart by increasing cytosolic AMP concentration. Am J Physiol Heart Circ Physiol 293 (1): H457-66. doi:10.1152/ajpheart.00002.2007. PMID 17369473. Bolen S, Feldman L, Vassy J, et al (2007). Systematic review: comparative effectiveness and safety of oral medications for type 2 diabetes mellitus. Ann Intern Med 147 (6): 386-99. PMID 17638715. Royal Pharmaceutical Society of Great Britain and the British Medical Association. Chapter 6:Endocrine system—6.1.2.2 Biguanides, British National Formulary, 54. Bailey CJ, Turner RC (1996). Metformin. N Engl J Med 334 (9): 574-9. doi:10.1056/NEJM199602293340906. PMID 8569826. Musi N, Hirshman MF, Nygren J, et al. (2002). Metformin increases AMP-activated protein kinase activity in skeletal muscle of subjects with type 2 diabetes. Diabetes 51 (7): 2074-81. PMID 12086935. Saeedi R, Parsons HL, Wambolt RB, et al. (2008). Metabolic actions of metformin in the heart can occur by AMPK-independent mechanisms. Am J Physiol Heart Circ Physiol 294 (6): H2497-506. doi:10.1152/ajpheart.00873.2007. PMID 18375721 Andrà ¨s E, Noel E, Goichot B (2002). Metformin-associated vitamin B12 deficiency. Arch Intern Med 162 (19): 2251-2. doi:10.1001/archinte.162.19.2251-a. PMID 12390080. Gilligan M (2002). Metformin and vitamin B12 deficiency. Arch Intern Med 162 (4): 484-5. doi:10.1001/archinte.162.4.484. PMID 11863489 Jones G, Macklin J, Alexander W (2003). Contraindications to the use of metformin. BMJ 326 (7379): 4-5. doi:10.1136/bmj.326.7379.4. PMID 12511434 Weir J (March 19, 1999). Guidelines with Regard to Metformin-Induced Lactic Acidosis and X-ray Contrast Medium Agents. Royal College of Radiologists. Retrieved on 2007-10-26 through the Internet Archive. a b Thomsen HS, Morcos SK (2003). Contrast media and the kidney: European Society of Urogenital Radiology (ESUR) guidelines. Br J Radiol 76 (908): 513-8. doi:10.1259/bjr/26964464. PMID 12893691.  

Cross Cultural Awareness And Preparation Of Expatriates Management Essay

Cross Cultural Awareness And Preparation Of Expatriates Management Essay The integration of world markets has resulted in an outstanding growth of multinational businesses and these corporations have emerged as an important form of foreign investment. As the organizations grow by virtue of investing in foreign countries, the need to manage, coordinate, control and integrate the foreign operations of their subsidiaries with those of the parent company increases to a large extent. To achieve the objectives of the company, parent companies in the home country usually send expatriate employees to host countries as corporate representatives and ambassadors. Firstly, the paper will focus on the importance cross-cultural awareness in preparing successful expatriates for overseas activities. Through examining the literature (comparison of Hofstede and Trompenaars cultural dimensions) this paper will examine how cultural awareness is important in developing successful expatriates. Moreover, the differences in Malaysian and American culture that can create hindranc e in a successful expatriate venture will be analyzed. Finally, it will argue the importance of training and orientation in terms of preparing expatriates for foreign assignments. Literature Review There have been number of researches done on the relationship between cultural distance and adjustment of expatriate, with some arguing that sending expatriates to a same culture is almost similar to sending them to different culture. The studies conducted by those scholars found that there is no or positive relationship between cultural distance and expatriate adjustment. The results of a report by Jan Selmer suggests that although there is a significant between-group difference in cultural distance, that the American expatriates perceive Canada as more culturally similar to America than Germany, no significant inter-group differences are detected for general adjustment, interaction adjustment, work adjustment and psychological adjustment (Selmer, 2007). It could be argued that American expatriates sent to Canada do not experience any cultural differences because those differences are not expected. It has been found from studies that respondents from similar cultures such as U.S. when assigned as expatriates are not keen to report adjustment problems as compare to expatriates which are assigned to more dissimilar cultures, such as China (Forster, 1997). The result given by Forster reflected that the degree of cultural strangeness does not seem to have any correlation with the result of the foreign assignment. Similarly, it has been reported that the Japanese multinational corporations have experienced that their expatriates appear to adjust about the same in different countries, regardless of their degree of cultural similarity to Japan (Peterson, 1996). In contrast to the above findings, there are many researches on expatriate adjustment that lead to the conclusion that cultures which are more dissimilar to the expatriate culture present bigger challenges and result in greater adjustment difficulties (Ward Kennedy, 1992). It has been found that found that U. S. expatriates are more likely to experience greater cultural barriers in Southeast Asia (India and Pakistan), the Middle-East, North Africa, East Africa and Liberia in the areas of job satisfaction, stress and anxiety, and quality of life standards such as housing, food, and health care (Torbià ¶rn, 1982). Furthermore, a report by Tung suggests that American expatriates express higher levels of dissatisfaction with their expatriation experiences in Africa, the Middle East and Southeast Asia than in other world regions since the culture in those areas are most dissimilar (Tung, 1982). Black and Stephens measures this correlation between the cultural distance and expatriate adj ustment using self-report from 220 business expatriates, whose results showed negative correlations (Black Stephens, 1989). Hofstede Cultural Dimensions The study conducted on IBM employees in 53 countries by Hofstede is generally referred as Hofstede Cultural Dimensions. By using standard statistical analysis of large data sets, he was able to define patterns of similarities and differences among the respondents. The theory formulated by using the gathered data states that world cultures differ along consistent fundamental dimensions. Power-distance It refers to the degree to which the members of the organizations and institutions which are less powerful accepting and expecting that power is distributed unequally (Hofstede, 1991). It represents inequality (more versus less) which is defined from below not from above. Hofstede suggests that societys level of inequality is fully endorsed by the followers as much as by the leaders. Collectivism vs. individualism This dimension refers to the degree to which individuals are integrated into groups (Hofstede, 1991). On one side we see individualist approach in societies where the relationships between individuals are loose, where everyone is expected to look after him/herself and his/her immediate family. But on the other side which is referred as collectivism, there are societies in which people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty (Hofstede, 1991). Femininity vs. Masculinity The third dimension describe by Hofstede is masculinity (MAS) versus its opposite, femininity. This refers to the distribution of roles between the genders in a society and it is also a fundamental issue for any society to which a range of solutions are found (Hofstede, 1991). The two main results that were found out by Hofstede on his study on IBM were, first, womens values differ less among societies than mens values; second, mens values from one country to another contain a dimension from very assertive and competitive and maximally different from womens values on the one side, to modest and caring and similar to womens values on the other. Uncertainty avoidance The main purpose of uncertainty avoidance index is that it deals with a societys tolerance for uncertainty and ambiguity; ultimately referring to the mans search for Truth (Hofstede, 1991). It refers to the extent to which the members of the society are programmed to feel uncomfortable or comfortable in unstructured situations. The situations which are novel, surprising and unknown, different from usual are referred as uncertain situations (Hofstede, 1991). Long- vs. short-term orientation This is the fifth dimension that was added after the initial four dimensions were developed by Hofstede. It was developed by a study conducted among students in 23 countries around the world, using a questionnaire designed by Chinese scholars (Bond, 2002). The results of this study revealed that the values associated with Long Term Orientation are thrift and perseverance and the values associated with Short Term Orientation are respect for tradition, fulfilling social obligations, and protecting ones face (Hofstede, 1991). Applause and Criticism of Hofstede Theory There are many researchers that are of the opinion that a survey is not an appropriate instrument for accurately determining and measuring cultural disparity. It is mostly apparent when the variable being measured is a value which culturally sensitive and subjective (Schwartz 1999). Perhaps this is the most popular criticism that was made on Hofstedes study and it says that Hofstede assumes that the domestic population is a homogenous whole. It also states that Hofstede tends to ignore the importance of community, and the variations of the community influences (Dorfman and Howell 1988). McSweeney argues that nations are not the proper units of analysis as cultures are not necessarily bounded by bordersm (McSweeney, 2000). It is also proved from recent research that culture is in fact fragmented across groups. There is also a criticism that the study revolves around one company cannot possibly provide information on the entire cultural system of a country (Graves 1986). It is also believed by some researchers have claimed that the study is too old to be of any modern value, particularly with todays rapidly changing global environments, internationalization and convergence. It has been argued that during the time of Hofstedes study there was very little work on culture. There was demand for such kind of work and therefore, Hofstedes work met demand for guidance. Trompenaars Cultural Dimensions Fons Trompenaars, a Dutch culturalist who is renowned for his work on international culture and Charles Hampden-Turner, a dilemma enthusiast classified seven dimensions of cultures. Trompenaars and Hampden-Turner (1997) categorized cultures as a mix of behavioral and value patterns. The research emphasize on the cultural dimensions of business executives. As a result of their research, seven value dimensions were established Universalism vs. Particularism The dimension of universalism is about finding broad and general rules. If any issue arises and there is no rule that fits, it finds the best rule. On the other hand, Particularism is about finding exceptions. The judgment of cases on its own merits rather than forcing an existing rule in case where no rules fit. Analyzing vs. Integrating The decomposition to find the detail is analyzing. It assumes that people who look at the big picture as being out of touch with reality. Integrating refers to bringing the things together to build the big picture. Individualism vs. Collectivism Individualism is about the rights of the individual. It seeks to let each person grow or fail on their own, and sees group-focus as denuding the individual of their inalienable rights. Collectivism is about the rights of the group or society. It seeks to put the family, group, company and country before the individual. It sees individualism as selfish and short-sighted (Trompenaars and Turner, 2000). Inner-directed vs. Outer-directed The approach that what we think in our head is the most powerful tool and that considered ideas and intuitive approaches are the best way. On the other hand, outer-directed is seeking data in the outer world. It assumes that we will live in a world and should form our decisions on information available to us (Trompenaars and Turner, 2000). Time as sequence vs. Time as synchronization The approach towards time as sequence and sees events as separate items in time, sequence one after another. It finds order in a serried array of actions that happen one after the other. Whereas, time as synchronization approaches the events in parallel and synchronized together (Trompenaars and Turner, 2000). Achieved status vs. Ascribed status The gain of status through performance is achieved status. In this it is assumed that individuals and organizations earn and lose their status every day, and that other approaches are recipes for failure. Gaining status through means of seniority is referred as ascribed status (Trompenaars and Turner, 2000). Equality vs. Hierarchy The approach that all people have equal status and have equal rights, irrespective of birth or other gift is referred as equality. Whereas, hierarchy is about people being superior to others when few are in charge and others obey through the scalar chain of command (Trompenaars and Turner, 2000). Applause and Criticism of Trompenaars and Turner Theory The work done by Trompenaars and Turner is regarded as one of the best in its field but at the same time there has been some criticism of Trompenaars and Hampden-Turner. One of their critics is Hofstede, who claims that the theory of Trompenaars is not supported by his database. Hofstede (1996) argues that a result of correlation and factor analysis at the country level, there are only two dimensions that could be identified and both of them are correlated with his Individualism dimension. This criticism by Hofstede was accepted by Turner Trompenaars (1997) and two contrasting lists of assumptions attributed to Hofstedes work and their own were presented by them. It is also been debated that Trompenaars and Turner didnt develop the dimensions from statistical data, but created their own collection instrument for the data they considered relevant Data derived from questionnaires is based on a limited number of questions by which underlying values were explained. Another notable criti cism is that the data is only selectively documented i.e. it is not to be considered scientific work. Also, the data (not all) is not freely available, it is owned by his company. The difference in the two works (Hofstedes and Trompenaars tuner) is that Hofstedes approach appears to be about the analysis of the variables of national culture, whereas Trompenaars and Turner are more involved in the process of cultural creation. It is also widely believed that there were very valuable dimensions that were added by Trompenaars and Turner. Hofstede and Trompenaars Turner and Preparation of Expatriate Challenges faced by Expatriates (Malaysian and American Culture) The globalization of world has made many international organizations to expand their business globally. Barto and Martin (1998) refer to globalization process a worldwide integration strategy where the purpose involves at developing relatively standardized products with global appeals, as well as rationalizing operations throughout the world. In order to achieve the objectives, organizations are required to send their designate representatives for overseas assignments in order to maintain the standards of their products or services abroad. A study was conducted in Malaysia to examine the issues faced by American expatriates working in Malaysia (Tahir Ismail, 2007). Attitudes of Malaysians Difficulties faced in understanding the indirect and non-confrontational behavior of Malaysians Malaysians misconception towards Mat Salleh Custom and Religion Problems in understanding the dress code of the locals Being cautious over religious issues Addressing Social Status: Difficulty in addressing names of Malaysians according to social status Gender Issues in Expatriation: Preconceived ideas about western women expatriates Malaysian Working Habit Difficulty in complying with the working pace High level of bureaucracy hinders job implementation Cross-cultural Training: Unavailability of a Structured Cross-Cultural Training program Importance of Training and Orientation The extent to which expatriates fail to achieve the expected outcomes of a foreign assignment is due to different reasons such as language problems, lack of effective knowledge transfer between the home and the host country (Tung, 1987), lack of personality skills for the expatriate to understand the cross-cultural interactions, shortage of technical abilities for the work to be done, lack of motivation or the expatriate may have difficulties to understand and adapt to either the physical or the cultural differences in the environment (Littrell et al., 2006). Companies use a variety of methods to teach expatriates cross-cultural skills, aimed at facilitating interactions with a foreign culture. Didactic Training This type of raining is most often provided in informal briefings, which can be given in a classical lecture form or with less structured methods such as casual conversations with experts. It is the most common and more than two thirds of all multinational corporations offer didactic training in the form of informal briefings to their expatriates before deployment abroad (Brewster, 1995). This kind of training provides factual information regarding working and living conditions as well as cultural aspects of the host country. Experiential Training This training is conveyed using a number of methods including, not only, practical exercises, workshops and simulations, but also more genuine concepts such as look-see visits to the host country (Caligiuri et al., 2001). The arrangement of look-see trips can provide a first real experience of the country for the expatriate and sometimes his or her family giving them opportunity to meet people in the new country and get a view of the new environment and the workplace. The planning of these trips should be properly done in order to be effective they need to be well planned, which can make them costly. Brewster (1995) argues that these are designed to give the expatriate a positive view; they may not show the true picture of the host country (Brewster, 1995). Language Training Teaching expatriates the language and/or the business language of the host country is part of the language training. Tung (1981) suggests that while fluency can take months or even years to attain there are still benefits of using this training method. This technique is often used and is an effective way of preparing an expatriate to speed up the adjustment process. Although fluency in the native language is not achieved, the ability to enter into informal discussions, use common courtesies and show cultural empathy can help to facilitate adaptation to the host culture. Cultural Awareness Training The ultimate objective of cultural awareness training is to give the expatriate insight about the culture and cultural differences, by teaching awareness about the home culture. There are different training activities that are included such as self-awareness building and value ranking charts, but the goals can also be reached with more culture-general approaches, such as simulation games and perceptual exercises (Grove Torbià ¶rn, 1985). Methods such as role-plays and self-assessments can be a good way of building self awareness, which translates into acceptance of oneself and an ability to adapt to the host culture. Conclusions In reviewing various cultural theories presented by different authors, it is obvious that culture plays a vital role in doing business globally. Companies that look to expand their operations globally must understand the host culture in depth and cross-cultural dimensions developed by Hofstede and Trompenaars Turner are of great help in this field. Also, organizations wishing to go global by investing in foreign countries, there is always a growing need to manage, coordinate, control and integrate the foreign operations and therefore, the importance of expatriates cannot be ignored. However, it is also found out that preparing expatriates is a great challenge and organizations invest lot of resources to prepare and train them for foreign assignments. Finally, the type of training and orientation provided to the expatriates is plays a significant importance in the successful fulfillment of overseas assignment.

Dropouts and CTE Essay -- Resarch Career Technical Education Essays

Dropouts and CTE In October 2000, the overall picture of high school dropouts had changed little since the late 1980s (Kaufman et al. 2001): For every 100 young adults enrolled in high school in October 1999, 5 had left school without completing a program; of 34.6 million U.S. young adults aged 16-24, 3.8 million—almost 11 percent—had not completed high school and were not enrolled. Some studies have shown that students in schools with a concentration of multiple risk factors (e.g., large schools, large classes, high poverty, inner city location) have less than one chance in two of graduating from high school; furthermore, the economic costs of dropping out have increased as time goes on (Castellano et al. 2001). Adjusting for 50 years of inflation, young male college graduates at the end of the 1990s earned about one and half times as much as their peers in 1949, but the young male high school dropout earned less than half as much as his counterpart. The conventional wisdom that CTE is one solution to the problem of dropouts is made clear in one statewide evaluation of STW (Schug and Western 1999). In telephone interviews, most randomly selected school district curriculum directors reported a belief that STW had beneficial effects on student outcomes like high school completion, but all 45 agreed that there was not reliable information on achievement, attendance, or completion rates. Another statewide study (Brown 2000) noted that state systems for collecting and reporting Tech Prep outcomes were poorly developed, perhaps because they were not required in the Tech Prep Education Act (Title III-E of Perkins II). So it would seem that the question remains: Is CTE one solution to the dropout problem or not? Early Statis... ... the Balance: An Analysis of High School Persistence, Academic Achievement, and Postsecondary Destinations. St. Paul: National Research Center for Career and Technical Education, University of Minnesota, 2001. (ED 461 721) http://www.nccte.org/publications/index.asp Publications and Materials: Case Studies. Atlanta, GA: High Schools That Work, Southern Regional Education Board, n.d. http://www.sreb.org/programs/hstw/publications/pubindex.asp Schug, M. C., and Western, R. D. School to Work in Wisconsin: Inflated Claims, Meager Results. Report 12, No. 1. Milwaukee: Wisconsin Policy Research Institute, 1999. (ED 427 246) Stern, D.; Dayton, C.; and Raby, M. Career Academies: Building Blocks for Reconstructing American High Schools. Berkeley: Career Academy Support Network, University of California, 2000. (ED 455 445) http://casn.berkeley.edu/buildingblocks.html

Alternative Medicine Essay -- Doctors Treatment Illness Papers

Alternative Medicine Although "Alternative" or "Complementary" medicine has been kept on the fringes of the medical sciences in the past, it is becoming increasingly more popular, and more reputable. Alternative medicines are those medical systems which are not taught to or practiced by most conventional medical doctors. Alternative medicines seemingly have always existed, changing and conforming to the current climate of society. There seems to be an almost endless number of alternative medicines, each with their own method of gaining perfect health. Often people who are dissatisfied with conventional medicine turn to alternative medicine for their medical needs. Many similarities link the diverse extremities of alternative medicine. These links define alternative medicine, but also help explain why they remain so controversial. They are characterized by a lack of unbiased, scientific testing, the belief in a vital force that cannot be explained scientifically, and a lack of strict regulation ensuring c ompetency and consistency among practitioners. Although these similarities exist a distinct separation must also be made between two types of alternative medical systems. The first type includes those that have "strong intellectual foundations and time tested methods of maintaining health and curing diseases" (Micozzi A48). These have established training and practice procedures and large numbers of practitioners and patients. Micozzi includes homeopathy, herbal treatment, chiropractic medicine, traditional osteopathy, and traditional Chinese medicine (acupuncture) in this first type of alternative medical systems. These are contrasted with what he refers to as "magic bullet" treatments which are usually for a specific dise... ...ailable: http//www.doubleclickd.com/theramessage.html [1996, Nov. 16]. Langone, John. "Challenging the Mainstream." Time. 148.14, 40-44, Fall, 1996. Magner, George. Chiropractic: The Victim's Perspective. Prometheus Books. Amhearst, New York: 1995. Marwick, Charles. "Time for New Head, New Approach at OAM." JAMA. 272.23, 1806-8, Dec 21, 1994. Micozzi, Marc S. "The need to Teach Alternative Medicine." The Chronicle of Higher Education. 42.9, A48, Aug. 16, 1996. Miller, James. "Critical Thinking of the Treating of Diseases: How to Avoid Quackery." Lecture Notes. The National Center for Homeopathy. (No date). Homeopathy: Natural Medicine for the 21st Century [Online]. Available: http://www.healthy.net/pan/pa/homepathic/natcenhom/ [1996, Nov. 16]. Young, James Harvey. American Health Quackery. Princeton University Press. Princeton, New Jersey: 1992. Alternative Medicine Essay -- Doctors Treatment Illness Papers Alternative Medicine Although "Alternative" or "Complementary" medicine has been kept on the fringes of the medical sciences in the past, it is becoming increasingly more popular, and more reputable. Alternative medicines are those medical systems which are not taught to or practiced by most conventional medical doctors. Alternative medicines seemingly have always existed, changing and conforming to the current climate of society. There seems to be an almost endless number of alternative medicines, each with their own method of gaining perfect health. Often people who are dissatisfied with conventional medicine turn to alternative medicine for their medical needs. Many similarities link the diverse extremities of alternative medicine. These links define alternative medicine, but also help explain why they remain so controversial. They are characterized by a lack of unbiased, scientific testing, the belief in a vital force that cannot be explained scientifically, and a lack of strict regulation ensuring c ompetency and consistency among practitioners. Although these similarities exist a distinct separation must also be made between two types of alternative medical systems. The first type includes those that have "strong intellectual foundations and time tested methods of maintaining health and curing diseases" (Micozzi A48). These have established training and practice procedures and large numbers of practitioners and patients. Micozzi includes homeopathy, herbal treatment, chiropractic medicine, traditional osteopathy, and traditional Chinese medicine (acupuncture) in this first type of alternative medical systems. These are contrasted with what he refers to as "magic bullet" treatments which are usually for a specific dise... ...ailable: http//www.doubleclickd.com/theramessage.html [1996, Nov. 16]. Langone, John. "Challenging the Mainstream." Time. 148.14, 40-44, Fall, 1996. Magner, George. Chiropractic: The Victim's Perspective. Prometheus Books. Amhearst, New York: 1995. Marwick, Charles. "Time for New Head, New Approach at OAM." JAMA. 272.23, 1806-8, Dec 21, 1994. Micozzi, Marc S. "The need to Teach Alternative Medicine." The Chronicle of Higher Education. 42.9, A48, Aug. 16, 1996. Miller, James. "Critical Thinking of the Treating of Diseases: How to Avoid Quackery." Lecture Notes. The National Center for Homeopathy. (No date). Homeopathy: Natural Medicine for the 21st Century [Online]. Available: http://www.healthy.net/pan/pa/homepathic/natcenhom/ [1996, Nov. 16]. Young, James Harvey. American Health Quackery. Princeton University Press. Princeton, New Jersey: 1992.

Language and Meaning in Animal Farm by George Orwell Essay example --

Language and Meaning in Animal Farm by George Orwell In Animal Farm, his allegory of the Soviet Revolution, Orwell examines the use of language and the subversion of the meaning of words by showing how the powerful manipulate words for their own benefit. As a journalist, Orwell knew the power of words to serve whichever side the writer backed. In the novel, Snowball is a quick talker who can always explain his way out of any situation. When the birds object to the maxim, "Four legs good, two legs bad," that the pig teaches the sheep, he explains that the bird's wing "is an organ of propulsion and not of manipulation. It should therefore be regarded as a leg." The birds do not really understand this explanation, but they accept it. Orwell particularly comments on the abuse of language with his character Squealer, "a brilliant talker," who acts as an unofficial head of propaganda for the pigs. Like Joseph Goebbels, who bore the title of Nazi party minister of propaganda and national enlightenment during World War II, Squealer "could turn black into white." This is also reminiscent of the official newspaper of the Communist Party of the Soviet Union, Pravda, which was often used to rewrite the pas t. (Ironically, its title means "Truth.") When a bad winter forces a reduction in food rations to the animals, Squealer calls it a "readjustment." In a totalitarian state, language can be used to change even the past. Squealer explains to the animals "that Snowball had never—as many of them had believed hitherto—received the order of 'Animal Hero, First Class'." God and Religion In the novel religion is represented by Moses, the tame raven. The clergy is presented as a privileged class tolerated by those in power because of their... ...d the commandment, however, it is discovered that it reads, "No animal shall kill any other animal without cause." "Somehow or other," the narrator comments, "the last two words had slipped out of the animals' memory." Similarly, when the pigs get into a case of whiskey and get drunk, Muriel looks up at the barn wall where the Seven Commandments had been written and sees that the Fifth Commandment reads, "No animal shall drink alcohol to excess." She thinks the animals must have forgotten the last two words of this commandment as well. She comes to believe that the original event of the writing of the commandments on the wall did not happen the way she and other animals remember it. With this theme Orwell challenges the Soviet state's—and any totalitarian state's—method of controlling public opinion by manipulating the truth and, in particular, rewriting history. Language and Meaning in Animal Farm by George Orwell Essay example -- Language and Meaning in Animal Farm by George Orwell In Animal Farm, his allegory of the Soviet Revolution, Orwell examines the use of language and the subversion of the meaning of words by showing how the powerful manipulate words for their own benefit. As a journalist, Orwell knew the power of words to serve whichever side the writer backed. In the novel, Snowball is a quick talker who can always explain his way out of any situation. When the birds object to the maxim, "Four legs good, two legs bad," that the pig teaches the sheep, he explains that the bird's wing "is an organ of propulsion and not of manipulation. It should therefore be regarded as a leg." The birds do not really understand this explanation, but they accept it. Orwell particularly comments on the abuse of language with his character Squealer, "a brilliant talker," who acts as an unofficial head of propaganda for the pigs. Like Joseph Goebbels, who bore the title of Nazi party minister of propaganda and national enlightenment during World War II, Squealer "could turn black into white." This is also reminiscent of the official newspaper of the Communist Party of the Soviet Union, Pravda, which was often used to rewrite the pas t. (Ironically, its title means "Truth.") When a bad winter forces a reduction in food rations to the animals, Squealer calls it a "readjustment." In a totalitarian state, language can be used to change even the past. Squealer explains to the animals "that Snowball had never—as many of them had believed hitherto—received the order of 'Animal Hero, First Class'." God and Religion In the novel religion is represented by Moses, the tame raven. The clergy is presented as a privileged class tolerated by those in power because of their... ...d the commandment, however, it is discovered that it reads, "No animal shall kill any other animal without cause." "Somehow or other," the narrator comments, "the last two words had slipped out of the animals' memory." Similarly, when the pigs get into a case of whiskey and get drunk, Muriel looks up at the barn wall where the Seven Commandments had been written and sees that the Fifth Commandment reads, "No animal shall drink alcohol to excess." She thinks the animals must have forgotten the last two words of this commandment as well. She comes to believe that the original event of the writing of the commandments on the wall did not happen the way she and other animals remember it. With this theme Orwell challenges the Soviet state's—and any totalitarian state's—method of controlling public opinion by manipulating the truth and, in particular, rewriting history.

Information Systems Development Methodologies Essay

This purpose of this paper is to give an understanding of the information systems development methodologies available. A software development methodology or system development methodology in software engineering is a framework that is used to structure, plan, and control the process of developing an information system. Here are some iterative methodologies that can be used especially for large projects and some of their characteristics. Spiral Model The idea is evolutionary development, using the waterfall model for each step; it’s intended to help manage risks. Don’t define in detail the entire system at first. The developers should only define the highest priority features. Define and implement those, then get feedback from users/customers (such feedback distinguishes â€Å"evolutionary† from â€Å"incremental† development). With this knowledge, they should then go back to define and implement more features in smaller chunks. Each iteration of the prototype represented as a cycle in the spiral. The Spiral software development model is a risk-oriented. Use the spiral model in projects where business goals are unstable but the architecture must be realized well enough to provide high loading and stress ability. Recognizing: 1. Focus is on risk assessment and on minimizing project risk by breaking a project into smaller segments and providing more ease-of-change during the development process, as well as providing the opportunity to evaluate risks and weigh consideration of project continuation throughout the life cycle. 2. Each cycle involves a progression through the same sequence of steps, for each portion of the product and for each of its levels of elaboration, from an overall concept-of- operation document down to the coding of each individual program. 3. Each trip around the spiral traverses four basic quadrants: (1) determine objectives, alternatives, and constraints of the iteration; (2) evaluate alternatives; identify and resolve risks; (3) develop and verify deliverables from the iteration; and (4) plan the next iteration. 4. Begin each cycle with an identification of stakeholders and their win conditions, and end each cycle with review and commitment. Phases: 1. Project Objectives. Similar to the system conception phase of the Waterfall Model. Objectives are determined, possible obstacles are identified and alternative approaches are weighed. 2. Risk Assessment. Possible alternatives are examined by the developer, and associated risks/problems are identified. Resolutions of the risks are evaluated and weighed in the consideration of project continuation. Sometimes prototyping is used to clarify needs. 3. Engineering & Production. Detailed requirements are determined and the software piece is developed. 4. Planning and Management. The customer is given an opportunity to analyze the results of the version created in the Engineering step and to offer feedback to the developer. Variations. Win-Win Spiral Process Model is a model of a process based on Theory W, which is a management theory and approach â€Å"based on making winners of all of the system’s key stakeholders as a necessary and sufficient condition for project success.† Incremental Development Here the project is divided into small parts. This allows the development team to demonstrate results earlier on in the process and obtain valuable feedback from system users. Often, each iteration is actually a mini-Waterfall process with the feedback from one phase providing vital information for the design of the next phase. Recognizing: 1. A series of mini-Waterfalls are performed, where all phases of the Waterfall development model are completed for a small part of the system, before proceeding to the next increment; OR 2. Overall requirements are defined before proceeding to evolutionary, mini-Waterfall development of individual increments of the system, OR 3. The initial software concept, requirements analysis, and design of architecture and system core are defined using the Waterfall approach, followed by iterative Prototyping, which culminates in installation of the final prototype (i.e., working system). Phases: 1. Inception. Identifies project scope, risks, and requirements (functional and non-functional) at a high level but in enough detail that work can be estimated. 2. Elaboration. Delivers a working architecture 3. Construction 4. Transition Variations . A number of process models have evolved from the iterative approach. All of these methods produce some demonstrable software product early on in the process in order to obtain valuable feedback from system users or other members of the project team. In some, the software products which are produced at the end of each step (or series of steps) can go into production immediately as incremental releases. Prototype Model The prototype model is used to overcome the limitations of waterfall model. In this model, instead of freezing the requirements before coding or design, a prototype is built to clearly understand the requirements. This prototype is built based on the current requirements. Through examining this prototype, the client gets a better understanding of the features of the final product. The processes involved in the prototyping approach are shown in the figure below. Recognizing: 1. Not a stand alone, complete development methodology, but rather an approach to handling selected portions of a larger, more traditional development methodology (i.e., Incremental, Spiral, or Rapid Application Development (RAD)). 2. Attempts to reduce inherent project risk by breaking a project into smaller segments and providing more ease-of-change during the development process. 3. User is involved throughout the process, which increases the likelihood of user acceptance of the final implementation. 4. Small-scale mock-ups of the system are developed following an iterative modification process until the prototype evolves to meet the users’ requirements. 5. While most prototypes are developed with the expectation that they will be discarded, it is possible in some cases to evolve from prototype to working system. 6. A basic understanding of the fundamental business problem – necessary to avoid solving wrong problem. Phases: 1. Requirements Definition/Collection. Similar to the Conceptualization phase of the waterfall model, but not as comprehensive. The information collected is usually limited to a subset of the complete system requirements. 2. Design. Once the initial layer of requirements information is collected, or new information is gathered, it is rapidly integrated into a new or existing design so that it may be folded into the prototype. 3. Prototype Creation/Modification. The information from the design is rapidly rolled into a prototype. This may mean the creation/modification of paper information, new coding, modifications to existing coding. 4. Assessment. The prototype is presented to the customer for review. Comments and suggestions are collected from the customer. 5. Prototype Refinement. Information collected from the customer is digested and the prototype is refined. The developer revises the prototype to make it more effective and efficient. 6. System Implementation. In most cases, the system is rewritten once requirements are understood. Sometimes, the Iterative process eventually produces a working system that can be the cornerstone for the fully functional system. Variation. A popular variation is called Rapid Application Development (RAD). It introduces strict time limits on each development phase and relies heavily on RA tools (allow quick development). Comparison of models * Involves higher cost – needs to be iterated more than once * Not suitable for smaller projects * Project success depends on the risk analysis phase – hence, it requires highly specific expertise in risk analysis * Limited reusability * No established controls for moving from one cycle to another cycle, no firm deadlines, lack of milestones * Management is dubious | Incremental| * Potential exists for exploiting knowledge gained in early increments. * Moderate control over the life of the project through the use of written documentation and the formal review and approval/signoff by the user and information technology management at designated major milestones * Stakeholders can be given concrete evidence of project status throughout the life cycle. * Helps to mitigate integration/architectural risks. * Allows delivery of a series of implementations that are gradually more complete and can go into production more quickly as incremental releases * Gradual implementation provides the ability to monitor the effect of incremental changes, isolate issues and make adjustments before the organization is negatively impacted| * Very rigid and do not overlap phases * Not all the requirements are gathered before starting the development; this could lead to problems related to system architecture at later iterations. * The user community needs to be actively involved throughout the project – time of the staff, project delay. * Communication and coordination skills take central stage in the development. * Informal requests for improvement after each phase may lead to confusion – controlled mechanism for handling substantive requests needs to be developed. * Possible â€Å"scope creep (user feedback on each phase increases customer demands. * Errors and risks can be detected at a much earlier stage, as the system is developed using prototypes * Addresses: inability of many users to specify their information needs; difficulty of systems analysts to understand the user’s environment * Can be used to realistically model important aspects of a system during each phase of the traditional life cycle * Improves user participation in system development and communication among project stakeholders Documents * Increases complexity of the overall system * Involves exploratory methodology and therefore involves higher risk. * Involves implementing and then repairing the way a system is built, so errors are an inherent part of the development process. * Can lead to false expectations and poorly designed systems. * Approval process and control is not strict. * Requirements may frequently change significantly.| Here is another table that consists of the situations where each model is the most appropriate for applying. The data is based on my previous analysis and additional data collected from the internet. Conclusion Why there are so many System Development Methodologies is because all projects and systems require its own road to run. And not each method will be suitable for another one. Selecting the correct software development methodology with a proper cost-benefit analysis for a project can help projects to release successfully, on time, and within budget. Once an organization has determined which methodologies will work best for its projects it can ensure that there is a repeatable process established that will ensure successful projects. Tackling a project blindly with no process defined will result in undesirable product. Errors in the products are common, yet if the process is utilized properly, they can be eliminated quickly. Choosing the better approach or simply understanding the methodologies is important to ensure the right project/product is a result from the hard work.